Contracts
What is a 'short sale' in Nevada real estate and how does it affect a purchase contract?
AA sale that closes in less than 30 days
BA sale where the lender agrees to accept less than the full mortgage balance owed, typically taking months and requiring lender approval before the contract can close✓ Correct
CA sale of a property with fewer than three bedrooms
DA sale by a short-term rental property owner
Explanation
In a short sale, the sale proceeds are insufficient to pay off the existing mortgage(s). The lender must approve the sale at a reduced payoff. In Nevada, short sales gained prominence during the 2008-2012 foreclosure crisis. The contract is contingent on lender approval, which can take 30-120+ days. Buyers must be patient and the seller's deficiency (if any) may be forgiven or negotiated. Nevada agents must disclose their expertise (or lack thereof) in short sales.
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