Looking to do a short sale. House is in Las Vegas. What legal questions should I be asking? Where can I get free legal advice?

Asked by Deployedbride, Las Vegas, Las Vegas, NV Thu Jan 19, 2012

We don't know much but we are concerned with several items. 1. What assets can be taken? (IRA's, Money Markets, cars?) 2. If we complete a short sale, can the lender ever come back to get the money later? 3. What else should we be concerned with that we aren't thinking about...other than the fact that we know our credit will be hurt. Are there any tricks that banks use that we should be aware of?
Thanks!

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25
Michael Parks, Agent, Las Vegas, NV
Fri Sep 21, 2012
There are an endless number of variations depending on what mortgage company(s) are servicing your loan(s) and your personal situation. Many primary homeowners fall under the HAFA program, which will make the short sale process more consistent, and as a requirement they release the debt so you wont have to worry about them coming after you. However without knowing more about the specifics of your loan it's very difficult to offer a direct response to those specific questions.

Another factor that you may want to keep an eye on is the Foreclosure Forgiveness Act that's set to expire at the end of this year (2012). As of yet they haven't announced any extension, so if you're considering doing a short sale you may want to move quickly if you want to avoid the possible tax implications that may likely affect you if you close after the first of the year.

I would be happy to review your situation in more detail at no charge, and I also have attorney's/accountants that can help you with any additional questions that fall outside of my scope of expertise.

If you want to see if your loan is owned by Fannie Mae or Freddie Mac, you can click here to check for free (most Fannie Mae loans will be eligible for HAFA): http://www.lasvegashousingexperts.com/short-sale-modificatio…

Michael Parks
Broker (CDPE, CSP)
http://www.LasVegasHousingExperts.com
702-818-1700

.
1 vote
Ron Thomas, Agent, Fresno, CA
Thu Jan 19, 2012
You are right, Realtors do not give Legal advice:
Here is one thought that may help you;
When you do the Shortsale, insist on a letter from the Lender stating that there will be no Legal Recourse for the Deficiency: I have heard that this is possible.

Good luck and may God bless
1 vote
James Gordon…, Agent, Hamilton, OH
Fri Sep 21, 2012
You need to find out what you will owe the IRS if you go through the process.
0 votes
Dorene Slavi…, Agent, Torrance, CA
Fri Sep 21, 2012
1. How will this short sale effect my credit?
2. How long will it effect my credit?
3. How to I go about rebuilding my credit?
4. How long will it take before I will be able to buy again?
0 votes
Paul May, , Las Vegas, NV
Fri Sep 21, 2012
I have a free consultation available with my attorney for you. We specialize in helping people with short sales. Check out some of my recommendations here on trulia-
And call me so we can help you.
0 votes
Frank Becerra, Agent, Las Vegas, NV
Sun Sep 16, 2012
I"ve been doing short sales for years, and have been an instructor at a non profit hud approved group. However this is not legal or financial advice nor should it be interpreted that way.
There is no simple blanket answer to your question as there are many variables. First you need to know what type of loan you have and it really doesn't matter so much as to who you are paying, but who the investor actually is. I have been able to get letters from the lenders forgiving the complete debt and putting in writing that they will not come after you., and in some cases they will pay you as much as 30,000 to do a short sale so you can relocate.
Let me know how I can help.
Web Reference:  http://www.myhomeivegas.com
0 votes
Wendi Willia…, Agent, Las Vegas, NV
Tue Sep 11, 2012
This article should answer most of your questions regarding Short Sales:

Las Vegas Short Sale Types And Tips

Short Sales are probably the most dynamic component of the Las Vegas real estate market. First of all, there is nothing “short” about them and it’s a bit of mystery of how or why that term came about. There are real benefits to these types of distressed property sales.

What are they?

In summary, a short sale means that the bank is taking a loss on a mortgage to get rid of an asset. For example if Johnny owes $100k on a house and finds a buyer willing to purchase it for $70k, Johnny is asking the lender to take a $30k haircut. This is where you step in and can make money, if you do it right.

The Two Kinds

An unapproved Short Sale means that the bank is aware that the owner is motivated to do a sale but the bank hasn’t formally agreed to take a haircut. The process for getting an approved “short” is hugely complex, involves a considerable amount of luck and is driven by the skill of an experienced short sale agent. An inexperienced agent will slowly bleed everyone to death a year later. It takes an experienced buyer’s agent to recognize one. Unapproved short sales often take between 2 months and 2 years to close!!!

An approved Short Sale means the bank has formally agreed to take a haircut. This also means that a buyer has made an offer and the bank accepted it. When these buyers do not execute on their offer you can jump on it. Unfortunately, this means that if you want to purchase an approved one, you have very little time to act (usually less than 48 hours) and you won’t have time to fly here to kick and smell the property. You will need an experienced agent to get a deal like this.

Please feel free to contact us for more specialized information,

LV Property Search
Info@LVPropertySearch.com
0 votes
Wendi Willia…, Agent, Las Vegas, NV
Tue Jul 17, 2012
Unless you have a tremendous amount of time and money on your hands, these will just eat your brain from the inside. If you really want to go down this path, here are some tips.

1. Try to focus only on the "approved short sales" that fall out of escrow. This is juicy ripe fruit that just hit the ground. The problem is that you have only a couple of days to pick it up. Your experienced buyer's agent will keep you posted on these. On average, one falls out of the tree about every 3 days.

2. Be patient. Both the listing agent and the buyer's agent have absolutely no control over this transaction. Some 12 year old at some remote lending institution is making all the decisions. There is no rhyme, reason or timeline that makes sense to anyone. If you call your agent to ask what is going on, they will say "no idea." Banks don't return phone calls, emails or have any sense of urgency. If the property actually closes, you will get 48 hours notice to jump through fire and cough up the entire balance.

3. Be prepared to pay more. 90% of short sales involve a last minute "we want more money" from the bank. They have strung you out for several months and they figure that if you held out this long, you will be willing to throw more chips on the table to stay in the game. This is the point where most investors want to pull their hair out. Right or wrong, legal or not, the bank has the investor by the leg and they know it...

In summary, you have to have serious patience, desire and stamina to make it to the finish line on one of these. Good luck: http://lvpropertysearch.com/las-vegas-investment-homes/las-v…
0 votes
Paul May, , Las Vegas, NV
Mon Jul 16, 2012
All great questions that can be answered in a phone call to me-
We utilize a short sale negotiation attorney- who can consult with you-
Please feel free to contact me as soon as you can-
In the meantime- check out my website for tons of short sale information-

Check out my testomonials on trulia to see that we have successfully helped short sale clients with all the issues you are inquiring about-



http://www.vegashomeanswers.com

Paul May
702-491-9601
paulmay@mayteamlv.com
0 votes
Robert D Hug…, Agent, Devon, PA
Mon Jul 16, 2012
Do yourself a huge favor Deployedbride, and use only experienced, honest and knowledgeable professionals. The reason most short-sales no do go to closing is inexperience, cooperation of the current owner. If the listing agent does not have a good working relationship with the current lien holders, it will be very difficult to get the transaction done.

Best of luck to you,


Rob Hughes: Long & Foster Real Estate Inc.
(Associate Broker) (AB065650)
(Hughes Associates) (Realtor since 1987)

Office: 610-225-7400 x7438

Cell# 484-410-9765 (Preferred)

http://www.trulia.com/profile/RobHughes/

http://WWW.ERICMAYMORTGAGE.COM
0 votes
Luke Joseph, Agent, Las Vegas, NV
Wed May 9, 2012
You question can be answered very quickly and very cheap, ask me and I will tell you.
702-684-7000
0 votes
Ellen Redd, Agent, Las Vegas, NV
Wed Apr 25, 2012
You will want to do it this year and soon as the laws are in your favor until the end of the year. I have a legal team that will work with you for fairly inexpensive, however, I can direct you to free legal resources as well as guide you through the process and explain the options you have. DONT WAIT. It is going to change at the end of the year and you will not like the change. So, as far as the process, goes, feel free to contact me, at 702-631-8585 or ellenredd@msn.com

There is a great wealth of knowledge on the subject, but again, laws will not be in place to protect you at the end of the year as it was established as a temporary safe net for sellers, during the crisis. The banks have restructured everything since from dripping the listings slowly to create limited supply, to no longer allowing agents to present a short sale without already having offers, and much more. They are not foolish, and are not going to be taking low ball offers any longer. Much to discuss.

BEst-
702-631-8585
ellenredd@msn.com
0 votes
Raina Musser, Both Buyer And Seller, Las Vegas, NV
Mon Mar 19, 2012
All clients of mine get free consultation with an attorney! All short sale contracts are viewed by attorneys as well! Please call me! Some banks give up to $23k to short sale! Yes, that is correct...$23k to short sale your home! Amazing! I hope to help you, please call me or email me if you would like to talk more about your options! Thank you for the great question, Raina Musser
raina.musser@gmail.com
702-232-1287
Web Reference:  http://vegashomesforu.com
0 votes
Dawn Barrier, Agent, Las Vegas, NV
Fri Feb 10, 2012
Hopefully, you have found some answers to your questions. If not feel free to give us a call
Web Reference:  http://www.LasVegasDawn.com
0 votes
Dawn Barrier, Agent, Las Vegas, NV
Tue Jan 31, 2012
You can learn a lot on the internet and from blogs, etc....

But, every situtaion is unique and don't assume what you read here or anyplace else is a fact for your circumstance.

In my opinion (not giving legal advice) I would want A short sale with NO deficiency judgement or waiver of future deficiency judgement is one of the main things you should be concerned with.

It is something I work for on all my short sales, but there is NO guarantee your lender will agree to it, EVEN if you do hire an attorney.
0 votes
Jeffery Sklar, Agent, Las Vegas, NV
Mon Jan 30, 2012
I always defer to the experts and while Realtors are experts, you need to contact a Broker with an attorney available to speak with. This will make sure you get the proper answers to your question in both Real Estate and Law.

Jeffrey Sklar
Broker
Property Manager
2012 Vice Chair GLVAR Property Management Committee
Southern Nevada Property Management
8871 West Flamingo Road Suite 202
Las Vegas, NV 89147
Phone 702-522-6764
Fax 888-203-2779
http://www.WeRentVegas.com
http://www.VegasLeaseOption.com
http://jeffreysklar.las.mlxchange.com
0 votes
Cindy Grimal…, Agent, Las Vegas, NV
Sun Jan 29, 2012
You may want to look in to putting your assets into a SPA Trust.
Web Reference:  http://VegasHomeSearch.info
0 votes
Mary Preheim, Agent, Henderson, NV
Mon Jan 23, 2012
Most of your questions are answered on my website... please feel free to preview at your convenience and contact me with any further questions.
http://www.lasvegasshortsaleanswers.com

Mary Preheim
702-403-3452
marypreheim@realtyexecutives.com
0 votes
Rosemarie Ku…, Agent, Las Vegas, NV
Thu Jan 19, 2012
Deployedbride,
As an EXIT agent we have a Short Sale department that handles all the paperwork for us.. All I do is get the listing and everything else is take care of by COMPLETE SHORT SALE PROCESSORS, they have al the right people to do the job including an attorney to answer your questions... below is a brief description of what they do..
Complete Short Sale Processors, a subsidiary of CWY Holdings, LLC, is in the business of relieving real estate agents of the necessity to process short sale transactions. Doing so allows them to focus on the reasons they got into real estate; to market, sell and close homes. We take care of getting homes through the short sale process, while our agents focus on marketing the home at the real, true market value and getting them sold.

Our primary goal in working with our clients is transparency. Agents that we have worked with have told us that one of their biggest worries, when considering handing short sale processing over to a processing company, was that it was difficult to have an understanding of where the home is in the process. They tell us that they feel a responsibility to their clients, in keeping them up to date on the short sale process, but have not been able to find a company that effectively keeps them in the loop.

For these agents, we created a way for them to be notified the moment one of their files is touched in any way. That way, they are kept “in the loop” at all times. We also have devised a way that for them to review all of these updates in one location 24 hours a day, seven days a week.

Other agents tell us that they did not want to give up their commissions to have the short sale processed and that they didn’t feel it was right of the processing company to charge their clients either. We do not charge the agents, buyer or homeowner any out of pocket expense for our service.

We simply are a company that helps grow an agents capacity in order to manage their increased production by adding a whole team of processors to their team…all for free!

**If you are interested please contact me at EXIT Las Vegas Realty Center.. we will be happy to help you will all your Short Sale needs..

Regards,
Rosemarie Kudo
0 votes
Steve Mikrut, Agent, Henderson, NV
Thu Jan 19, 2012
Deployedbride,
The process of a short sale is very intricate and should definitely be handled by a professional (or a team of professionals for that matter). We have extensive experience with short sales and use a service that specializes in the negotiations with banks in getting them approved. This is a sometimes long, painful process that can be quite demanding. I can tell you this:
1. The bank can not take any of your assets. They will review your current financial situation and may request that you contribute some money toward the short sale. We see this often with people who have liquid cash, but not other assets such as you're describing.
2. The lender can file a judgement against you for the deficiency after the approved short sale, but part of the short sale negotiations MUST involve their waiver of this right to file a future judgement. This is a must. If you don't get this, don't agree to short sale.
3. Get an experienced agent!! This is key. I definitely recommend one that relies on a professional "short sale negotiation" company; these tend to be attorneys and these approvals and sales are more successful.

There's not a whole lot to consider...it's an intricate process that you need to be guided through by a trusted professional. There are a slew of variables that may come up and you'll need to be in good hands.

Let me know if you wish to discuss this further or if you need my assistance.

Thanks,
Steve
702-630-6239 cell/text
mikrutyoung@gmail.com
0 votes
Will Nabhan, Agent, Las Vegas, NV
Thu Jan 19, 2012
The short sale is completely negotiable. Your agent should be able to negotiate on your behalf with your best interest in mind. Your agent must show the lender how it is in their best interest to bring the short sale to fruition. At its best, you get your loan released, the bank does not pursue any deficiency and you are on your way to a fresh start. With a properly negotiated short sale everyone walks away from the closing table happy. There are laws that favor the seller in respect to taxes which are due to expire at the end of this year so time may be of essence. I charge my clients no commission on short sales, only what I can negotiate from the lender. Please call or e-mail me with any questions you may have.
Web Reference:  http://www.freemovehome.com
0 votes
Stephen Mess…, Agent, Las Vegas, NV
Thu Jan 19, 2012
Hi Deployedbride we are having a free informational seminar tonight at my office with attorney Jared Jenning so that home owners can learn more about short selling. My office is located at our Keller Williams office located at 1333 N. Buffalo Dr. Ste 270, Las Vegas, NV 89128 , the seminar is from 6:00-7:30pm. If you can make it to the event please ask for me Stephen Messner.

Stephen Messner
702-882-1235
messnersj@gmail.com
0 votes
Paul May, , Las Vegas, NV
Thu Jan 19, 2012
We have a legal Dept that can advise you- our short sale program has a 90% success rate and we will be happy to guide you thru the process- the legal advice and my services are free to you-
Web Reference:  http://Vegashomeanswers.com
0 votes
Suzie Marqua…, Agent, Las Vegas, NV
Thu Jan 19, 2012
I would be happy to talk with you about doing a short sale. Banks can't take 401 K''s or IRA'S. There are many factors to consider. We want to get an approval or approvals if There are more than one loan that have the proper language to get rid of any deficiency judgement in the future. Also the tax consequences need to be addressed. The banks don' t reall try to pull any tricks they are just slow and that gets frustrating. I have an attorney that I work with that you can talk to when necessary. You need an experienced Realtor with in the trenches short sale experience. I am always available to answer your questions.
ThanknYou
Suzie Marquardt
Fahrnyteam@yahoo.com
702-234-7653
0 votes
Robert D Hug…, Agent, Devon, PA
Thu Jan 19, 2012
Deployedbride, Please only use Professional, reputable/knowledgeable individuals. Many scammers out there or agents who have no clue what they are doing. Best to google and find out what the laws are regarding short-sales in your State. Yes if current owners are foolish enough to sign what is called a deficiency judgement, The bank has the right to come after you later for the money they lost in that sale. All States are different, verify with Attorneys or free legal advice what ever is your situation. Only use agents experienced in short-sales!

The IRS also gets a 1099 form from the lender stating the short fall, which has tax implications, so discuss with a qualified Attorney/accountant.

Very sorry this is happening to you and many more through-out our country.
Best of luck to you,

Rob Hughes-Long and Foster-RE INC.
0 votes
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