Current Nevada Law: Subject to Verification
This article discusses lender-approved short sales and Nevada deed-of-trust foreclosure concepts in general terms for education. Short sales involve asking a lienholder to accept less than the amount needed to release its lien; approval is never automatic and involves documentation, timeline and consequence questions. Current Nevada deed-of-trust foreclosure procedures are governed primarily by NRS Chapter 107. Nothing here is a guarantee that a short sale will be approved, and sellers facing possible foreclosure should consult a qualified Nevada attorney and their lender or servicer promptly.
What Being Upside Down Actually Means
Being upside down means the amount needed to satisfy the debt against a property may exceed what the property can realistically produce from a sale.
But before assuming you cannot sell, get the actual numbers.
A Zestimate Is Not Enough
A Zestimate, mortgage-app balance and rough guess at selling costs are not enough to make this decision.
Start with a realistic market analysis and obtain current payoff information for loans secured by the property.
Then account for the costs and credits that may be associated with the transaction.
Run what the sale would produce through the Seller Net Calculator so you are comparing real proceeds, not a headline number.
Sometimes the Gap Is Smaller Than You Fear
Sometimes the gap is smaller than the owner feared.
Sometimes appreciation, principal reduction or a stronger-than-expected market position has created more equity than the seller realized.
If There Really Is a Shortage
In other cases, there really is a shortage.
If there is a shortage, several possibilities may need to be explored depending on the owner's circumstances.
A seller may be able to bring money to closing.
That sounds unpleasant—and sometimes it is—but paying a manageable difference can make sense when compared with the financial or personal cost of keeping a property that no longer works.
What a Short Sale Is (and Isn't)
There may also be situations where a lender-approved short sale becomes relevant.
A short sale is not simply listing a property cheaply.
It generally involves asking a lienholder to approve receiving less than the amount otherwise required to release its lien.
Approval is not automatic, and documentation, timelines and consequences require careful review.
For the deeper picture, see the short sale vs foreclosure and how a short sale works guides, plus the distressed homeowner resource center.
Selling Today Is Not Always the Best Move
Other owners may discover that selling today is not their best move.
Renting the property, adjusting the timeline, reducing other debt or simply waiting may deserve consideration.
The key is not to make the decision from fear.
Get the Numbers First, Then Decide
If you think you're upside down, Lisa can help establish a realistic potential sale range and estimated seller proceeds so you know whether there is actually a problem and roughly how large it may be.
From there, your lender, attorney, tax professional or other appropriate advisor can be brought in when necessary.
You don't need to hide from the numbers.
Get the numbers first.
Then make the decision.
For the full path from this decision through listing and closing, keep the Complete Las Vegas Seller's Guide nearby.
Want to Know What the Records Say About Your Property?
Request a free Property DNA report. Property DNA can include available property, ownership/history, mortgage-related, comparable, neighborhood, school, risk, public-record and other property information depending on available sources.
Current typical turnaround is approximately 40 minutes during normal business hours, and many reports are returned within one hour or the same business day, but turnaround is not guaranteed and can vary.
Property DNA is free through Lisa. Request a free Property DNA report.
Important
Property DNA uses third-party, public-record and other available data believed reliable but not guaranteed. It is provided for informational purposes and is not an appraisal, title search, title commitment, title insurance policy, inspection, survey, legal opinion, tax opinion, environmental report or guarantee of value.
