Foreclosures in Las Vegas, NV
What is a foreclosure & should I buy one?
When the economy crashed so did our local Real Estate Market. Many home owners were so upside down on their mortgages banks starting foreclosing on homes in record numbers. Now that the market has stabilized there are not as many foreclosures on the market but they are still plentiful in the Las Vegas area. We have put this blog together to discuss the process of foreclosures and the positives and negatives of purchasing a foreclosure. Below you will find a list of foreclosures for sale in Las Vegas, NV. If you would like us to create a search for you based on your specific needs and budget give us call us at 702-845-5348. See what clients are saying about The Sales Team! Client Testimonials
Foreclosure is the lengthy, legal process the lender (lien holder) uses to take back control of a property due to non-payment of the homeowner’s mortgage. Home owners quit making their payments for a variety of reasons and a foreclosure is typically not voluntary. A voluntary means of giving back the property would be a deed in lieu of foreclosure or some homeowners choose to short sell their property. There are many laws involved with this process and each state is different. Most every state provides a period of redemption, which gives the seller time to cure the default.
After a certain amount of missed payments (this will vary based on the lender) the lender will file a notice of default with the County Recorder’s office. After the home owner receives the notice of default the pre-foreclosure process begins. If the homeowner chooses not to work with the lender the process continues and eventually the the property will be sold at an auction or a trustee sale. If the property does not sell at this auction the lender takes ownership of the property and will sell it as a REO or bank owned property. This is a very brief summary of the process, foreclosures are extremely time consuming and complicated. Please let us know if you have any specific questions. ‘
You can purchase a foreclosed home through a public auction or through a real estate agent. There are a few things we would like to address when purchasing a bank owned property.
- Response Time – Keep in mind an offer on a foreclosed property may require several approvals, therefore it may take a lot longer than a traditional sale to get a response.
- Unknown Property Condition – The bank has never occupied the property, nor maintained it so there will be uncertainty with the actual property condition. We highly recommend obtaining a professional home inspection although this is just a snap shot of the condition and may not uncover hidden defects or issues.
- Out of Pocket Expenses – Some banks will not pay for traditionally paid “seller” closing costs such as transfer taxes, HOA fees and other miscellaneous expenses. Your Realtor should inform you of any out of the ordinary expenses prior to writing your offer.
- Utilities – Some banks will not turn on the gas, water or power in a vacant home. Some state it is the responsibility of the prospective home buyer to turn on all utilities to conduct a home inspection.
- Repairs – Most banks will not make any repairs or financially contribute to correct any issues with the property. You are basically purchasing the home “As Is”. If an issue is found that presents a safety issue that repair may be able to be negotiated.
- Risk – We have had problems with squatters, stolen appliances, missing pool equipment and ac units. There is also a chance of vandalism. If anything like this happens while in escrow this requires additional negotiations with the bank and time to get a response which could delay closing.
- Additional Paperwork – When purchasing a home you will have a pile of contracts, disclosures and other miscellaneous documents. When purchasing a foreclosure expect to have additional purchase agreements, addendums and disclosures which can get confusing. Make sure your Realtor is experienced with bank owned properties and can explain to you the documents and process.
- Competition – If the home is in decent shape and is priced good you may experience a multiple offer situation. The same goes if the property is a complete dog and is priced well below market value.
Some bank owned homes are complete fixer uppers and banks will not lend on a property in this condition. One option would be to explore a loan such as the FHA 203K renovation loan.
The foreclosure market in Las Vegas offers buyers a unique opportunity to purchase a home. They are available in diverse price ranges and property conditions. There are opportunities for flipping properties as an investment or cosmetically fixing a house up to make it your own. Some bank owned homes are priced well under market value and some are well above. We recommend working with a real estate professional experienced with selling bank owned properties and doing a lot of research on the property before deciding to write an offer. The Sales Team have successfully closed many bank owned homes in Las Vegas and would love to put our experience to work for you. Below you will find a list of foreclosures in the Las Vegas area.
Best Regards,
The Sales Team
www.findinghomesinhenderson.com
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