Short Sale FAQs

The following are answers to frequently asked questions that the attorneys at Peters & Associates, LLP encounter as they help homeowners and investment property owners in Las Vegas, North Las Vegas and Henderson, Nevada negotiate Short Sales to rid themselves of oppressive and unmanageable mortgage debt while avoiding a foreclosure on their property. We hope the following information is helpful to you. If you have other questions or need assistance negotiating a Short Sale, contact Peters & Associates, LLP for a free consultation with one of our experienced real estate and contract lawyers.

Q. Why should I hire an attorney for a Short Sale instead of just using a real estate agent?

A. Real estate agents excel at buying and selling property, but they are not experts in contract law. The reason you are entering into a Short Sale is not because you want to sell your home; it is because you are either under water with your mortgage or cannot afford the payments and are facing foreclosure. Your main interest is not in selling the home; it is in getting out of the contract and in not being liable for the deficiency. A Short Sale must be negotiated first with the lender before you attempt to sell your home. For these issues you need an attorney; not a real estate agent.

Q. Why not just walk away and let the bank foreclose?

A. You don't owe your house to the bank; you owe an amount of money, which is secured by a mortgage on the house. When the bank forecloses, it takes that security - the house - and sells it for what it can to offset the amount you owe on your mortgage. But any deficiency left over remains your responsibility, and the bank can sue you for that deficiency and obtain a money judgment against you. If instead you negotiate a Short Sale, a Deed in Lieu of Foreclosure, or any other transaction such as Cash For Keys, your attorney can probably relieve you of all financial obligations related to the house, including any deficiency.

If you negotiate a deal rather than let the bank foreclose, you leave on your terms, rather than being unceremoniously evicted by the sheriff in front of your neighbors. Also, any negotiated settlement will have less of an impact on your credit report than a foreclosure. Following a Short Sale, you may be able to get a new loan in as soon as six months. Getting approved for a new loan after a foreclosure will probably take considerably longer. Contact an attorney experienced in real estate and contract law before you decide to walk away from your home.