When you are looking for pre-foreclosure listings in the North Las Vegas area, try and find homes, look for homes that have fallen out of contract and that are pre-approved short sales first because you can close quicker on them, as opposed to a short sale that has not been pre-approved. Short sales are pre-foreclosures. Since the seller’s bank has already approved a sales price that they are willing to allow the distressed homeowner to sell their home to a ready, willing and able buyer, there is no guess work as to the price. However, you need to act quickly because sometimes there is a short window of opportunity before the bank makes the seller start the short sale process all over again.
When you make an offer on a pre-approved foreclosure home, you avoid the issue of having to deal with an unrealistic upside homeowner who has overpriced their home simply because they don’t want to get their bank involved in a short sale. These sellers are not in touch with reality. They are actually hurting their chances of selling their home and taking a much larger risk that they will lose their home to foreclosure and damage their credit. With so many fine quality pre-foreclosure listings that have already been pre-approved in the North Las Vegas area, you don’t need to worry about dealing with unrealistic distressed sellers.
Work with a Local Realtor
The important and smart thing to do is to work with a local North Las Vegas Realtor who can provide you with a list of pre-approved, pre-foreclosure listings, as well as REO’s (bank owned) foreclosure listings. The Realtor is knowledgeable about the local inventory. Using a Realtor will speed up your search process. The Realtor can also help you with the negotiations. Lenders can be difficult in dealing with short sale properties. They want close to full price and quick closings with cash buyers. If you have cash, you won’t have any trouble finding quality pre-foreclosures and REO’s in the North Las Vegas and surrounding areas. Cash is king here.
Pre-foreclosure vs. REO
Some people think that pre-foreclosure homes and REO’s are the same. Actually, the major difference between a pre-foreclosure home and a REO property is the pre-foreclosure or short sale is still owned by the seller. The seller is usually upside down on their mortgage and about to lose their home to foreclosure because they are in default on their mortgage payments. In order to sell their home for less than they owe on their mortgage, the seller must get approval from their bank first in order to close the transaction.
The banks have been slow in approving short sales; taking as long as 6 months or a year in some cases. This has frustrated everyone, including buyers and Realtors. Many sales have fallen out of contract because the buyers got impatient and found other opportunities. The only thing that has changed is the government has implemented their HAFA program, which is supposed to streamline the short sale process when lenders and borrowers agree to participate in the program. The borrower must meet the program guidelines.
Under the HAFA program, lenders are required to approve or disapprove the short sale within 10 days after receipt of the offer. If you are a buyer or investor interested in buying a North Las Vegas quality pre-foreclosure property, you might want to ask the listing agent if the seller is eligible for the HAFA program. It will save you a whole lot of time and hassle if the seller and their lender are willing to participate in the program. The seller and lender get cash incentives from the government for participating and closing the transaction.
Similarities between a pre-foreclosure/short sale and REO include:
- They offer discounted prices
- You get to purchase a property with built in equity
- You can inspect the home
- You are able to obtain title insurance
- All liens are paid at or before closing
- You don’t have to evict any former tenant or owners
- The bank pays the Realtor’s commission
Right now is a great time to purchase foreclosed houses in the North Las Vegas area. Whether you are interested in a pre-foreclosure property, auction foreclosure property or REO, all are good values. You should be able to find pre-foreclosures or foreclosed houses in just about any neighborhood or price range that meets your criteria.
