There are actually many reasons for banks to accept a Short Sale rather than foreclose on a home. The main reason banks do anything is because they make more money that way. When negotiating Short Sales, it is common for us to have to prove to the bank that the investor stands to make more money if they approve our short sale rather than foreclose on the homeowner. We understand what values the banks and investors place on the properties and the percentages they expect to “net” in order to make more money and approve a short sale.
Another reason banks are more likely to approve a short sale and even give the homeowner cash at closing is that the banks and investors receive government incentives for helping each homeowner; we are talking about thousands of dollars.
And yet even another reason banks are at an all-time high of approving short sale banks is that agents like those on our team produce thorough, concise packages in the order that bank representatives like to review files. Our member affiliates have met with heads of departments to find out what submittal process would help them become more efficient and we have adapted to that, helping reduce the time that the banks take to approve your Short Sale.
The last main reason that banks are more likely to approve your short sale now is that there are hindrances in Nevada legislation and clogged up courts with many disputes claiming banks do not have the right to foreclose. The most notorious contributors are Assembly Bill 284 (AB 284) and the MERS suit which was approved by the Nevada Supreme Court to allow MERS to foreclose on delinquent homeowners. Over the summer of 2013, the Nevada State legislature approved the Homeowner’s Bill of Rights which redefines how the banks have to act and what steps are required to legally foreclose. This includes many consumer protective measures put in place to help the homeowners of Nevada.
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For more specific questions not answered here or in our Short Sale FAQ’s, please email Five Star Real Estate at Contact@FiveStarVegasHomes.com or call us today at 702.852.2852.