775-473-9531| Short Sale Guide for Home Owners | |||
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What is a Short Sale?
A short sale is a real estate transaction in which the seller is not able to pay the mortgage lender(s) the principal amount of the loan(s) from the net proceeds from the sale transaction. The mortgage lender(s) will be "short" of a full payoff. As a result, a Reno area short sale transaction is subject to the seller's lender(s) approval.
Net proceeds from a real estate transaction equals the purchase price less closing costs, brokerage fees, seller concessions, and non mortgage liens such as property tax or homeowner association liens.
Compared to a traditional sale, a short sale transaction is more complex and generally takes longer to complete. For the homeowner who is unable to continue ownership and risks foreclosure, the short sale transaction offers many benefits.
For more background on Reno/Sparks Short Sales, see Wikipedia - Short Sales.
NOTE: There are many alternatives available to a distressed homeowner - short sale is only one of them. To explore alternatives as published from government sources, please review the links within the "Short Sale Resources" section of this guide.
What is a Deed In Lieu of Foreclosure
A Deed in Lieu of foreclosure (DIL) is a disposition option in which a mortgagor voluntarily deeds collateral property in exchange for a release from all obligations under the mortgage. A DIL of foreclosure may not be accepted from mortgagors who can financially make their mortgage payments. The Deed in Lieu of foreclosure is sometimes referred to as 'giving the keys back to the bank'.
For more background on a Deed in Lieu of Foreclsoure, see this Wikipedia article.
What is Foreclosure
In simple terms, a foreclosure is the legal process by which an owner's right to a property is terminated, usually due to default. This process typically involves a forced sale of the property at public auction, with the proceeds being applied to the mortgage debt.
In Nevada, there are statutory requirements lenders must follow as part of the foreclosure process.
For more background on types of foreclosure, see Wikipedia - Foreclosure.
Notice: The information on this page pertains to the state of Nevada. This information is drawn from selling short sale homes in Reno, Sparks, Carson City, Dayton, Minden, Gardnerville, Genoa (Carson Valley), and Lake Tahoe as well as multiple national resources, banks, and government agencies. This information is subject to change at anytime and while, believed to be accurate, is not guaranteed. Reno short sale real estate agents, brokers, and REALTORs are not qualified to give legal or tax advice and home sellers are advised to seek independent professional legal and tax advice.
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Short Sale v. Foreclosure 
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