The Las Vegas Short Sale Gamble

Copyright (c) 2011 Jordan Taylor

In Nevada, we do everything on a grand scale. During the housing bubble Las Vegas built big, bought high, and daydreamed about creating a new era of Las Vegas. The original resorts that forged this town were demolished so developers could break ground on new high-rise condominium complexes throughout the city. These properties were gobbled up by investors looking to take advantage of the booming housing market. Mortgage Companies were freely giving money away so they would have additional mortgages to throw into the mortgage backed securities that were so popular amoung investors.

Well, I guess the saying is correct, what goes up, must come down. That's definitely what has happened in Las Vegas. The towering boom hit a wall and reduced itself to a painful bust, and that bust feels an awful lot like tearing the Band-Aid off an old crusty wound. It's stuck, so it hurts, because it hurts, you try to rip it off slowly, which just prolongs the pain. Our recovery will be a long, drawn-out, painful process, but in the end we'll come out of this.

Presently, Las Vegas is still number one. Only instead of being the fastest growing city in the US, we have the one of the largest short sale markets in the country. So how does it feel to be at the bottom? Not really all that bad. Yes, we will have to make difficult choices that they would not have made if this housing boom had never happened. A lot of individuals are coming to the conclusion that a short sale is a valid option for them. Why keep a home that may still be descending in value, or be so underwater that even after paying your mortgage for 20 plus years you may not have a single cent in equity? The attachment many homeowners formed to their property in the early years of the economic recession is starting to weaken, much like an old Band-Aid that's been through a few hand washings. It isn't as painful to tear off any more, in fact, it makes ripping it off that much more painless.

What's next for Nevada? Who knows? You've got to know when to hold 'em, know when to fold 'em, and it looks like the number of people looking to walk away, or who are looking at a short sale as a valid option is on the rise. It just makes sense to homeowners. Even celebrities and people who can afford to pay for their homes in Las Vegas are choosing to run. New programs continue to become available, and negotiating the eradication of any deficiency judgment progressively persuade more and more Las Vegan's into accessing the short sale market. Are you in?

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