"We Can't Wait"

On October 24th, President Obama came to Las Vegas as part of his national tour for re-election. During his trip he announced his new plan to help struggling homeowner's. His "We Can't Wait" plan is targeted to homeowner's who have continued to make payments and still find themselves "underwater" and allowing them to refinance their original loan.

The plan isn't going to solve all the problems Nevada homeowners are facing, but it should make a significant impact on those seriously considering walking away.

The mortgage plan will revise the HAMP program, which was unveiled at the beginning of Obama's administration. Almost three year's later, only about 800,000 people have qualified for the policy, one-tenth of the projected 5 million people it was supposed to. The largest flaw of the program was that only those who owed 25% or more than their properties were worth were able to qualify.

Under the new program, the limit to how much a borrower can owe is gone. Fees will be reduced and banks that allow the refinance will be cleared of liability. In other words, everyone wins. The only draw back is that only borrowers whose loans are owned or guaranteed by Fannie Mae or Freddie Mac are eligible to take advantage.

The program is not expected to increase costs for taxpayers. Final details of the plan will be announced in mid-November, borrowers may not be able to enroll until the first quarter of next year.

Personally, I think this is a great idea. Hopefully, other banks will allow their borrowers to take advantage of the low interest rates and refinance. I've had so many conversations with frustrated homeowners asking, "Why won't banks just allow us to refinance?" Typically when you refinance you have to have equity in the property, since the value of the home is less than what is owed, there is no equity. Perhaps this program, if it's successful will be the first step towards a more practical idea to real solutions.

10s, 50s, 100s

Last Tuesday at my office, my broker introduced us to Coldwell Banker's REC Business Consultant John "Shoes" Schumacher. He was there to teach us all how to identify where we were in our business, how to locate the path to get us where we want to be and most importantly, stay on the path.

During his discussion he mentioned something that really made an impact on me. He said, "Typically, when you goal-set it's a negotiation between the manager and sales associate. Your "goal-setting" is related only to numbers and your goal for productivity, but there isn't a lot of motivation built into that. We have to get below the surface."

Ask yourself... What do I want:

1. to acquire?
2. to achieve?
3. to do?
4. to learn?
5. to see?
6. to become?

In the past when we were asked to think of goals it was always in terms of short term and long terms goals. What makes "Shoes" idea of 10s, 50s, 100s different is the idea that are little goals, medium goals, and long range goals that we want to achieve.

The 10s: represent things that you want to do, achieve, or acquire that doesn't cost much to accomplish.

The 50s: represent things that take money or time that will have to be dedicated in order to achieve.

The 100s: if time and money weren't an object, what would you want to acquire, achieve, do, learn, see or become?

As I wrote my list I included things both personal and business related. I sat deep in thought and imagined the person I wanted to be and something interesting happened. My list first began to fill with 100s... the larger-than-life, unbelievably impossible things I wanted to accomplish, but didn't seem possible. As I reread them I realized, 'not all of these are impossible... if I just dedicated a bit more time, effort, money I could do these!? They were 50's!'

As I adjusted my list again, the 10s and 50s began to grow and then my "A-Ha" moment occurred. If I accomplished every 10 (which was the easy stuff), I could accomplish the 50s. And naturally if I accomplished the 50s... I could EASILY accomplish my "impossible" dreams.

I then took the next few moments to think about that sentence a bit more. I actually became emotional. Never had the impossible seemed so "easy" to achieve. I actually became extremely motivated and excited at the thought of being able to do things like take a photo adventure and travel to every continent, live a life where I never have to worry about money EVER, and the idea that I could actually make significant anonymous donations to cancer, aids and autism research!

Make your list of 10s, 50s, and 100s and see what you can accomplish. Add at least one 10 into your daily schedule everyday. No longer do you have to "imagine the possibilities"... MAKE IT HAPPEN.

Borrowers sue over Loan Mod mishaps

In an article by the Associated Press released this morning, it is reported that homeowners across the nation are filing a class action lawsuit against their banks for "breach of contract". These people have spent time and energy to negotiate modifications of their loan and the banks then, after accepting the terms, renig on the agreement. They are even renigging on the people who used the HAMP program which was created by the Obama administration to keep people in their homes!?

The bank's response is that they just don't have the manpower to handle all the paperwork... really? Here's a solution- hire more people!? It's not like people don't need jobs in this economy. I could maybe understand if it was a training issue, but the reason you are going against a signed agreement is because you haven't taken time to put out an ad and conducting interviews? You deserve to be sued. The fact that people are losing their homes because of a lack of manpower, clerical error or lack of oversight is just ridiculous! We've already dealt with this once before with Short Sales and Foreclosures flooding the market back in 2008. Come on already banks!? We're making so much head way with Short Sales and Foreclosures: cutting down on response times, moving through inventories and keeping people from having to foreclose on their property or getting deficiencies waved. You threaten our recovery and progress by creating a problem where one isn't necessary. The numbers show there are less people getting loan modifications approved so much so that many local legal firms and agencies have stopped listing it as an option!? Why attack the few that you DID accept!?

Read more from the article on this subject by going here: http://hosted.ap.org/dynamic/stories/U/US_LOAN_MOD_LAWSUITS?SITE=NVLAS&SECTION=BUSINESS&TEMPLATE=DEFAULT

10 ways to save you money in 2011

With the tightening of mortgage standards in the past few years, many have questioned, "How can I qualify for a loan these days?" Well, here are 10 tips that can help you get that sought after loan with a decent interest rate, meets your needs, and can save you money!

1. Have the right credit score. Sure it seems like a "no-brainer", but nowadays credit is more important than ever! In the past the best deals required a score of 720. Now, they require a score of 740. With the state of the economy and many people losing jobs, having to short sale, or foreclose on their property... it's fair to say that there aren't a ton of people with this score. If you are one of many who have had a significant impact on their credit in the subsequent years, whether or not you plan to purchase a house within the next year, Contact me. I can get you in touch with a credit repair company that can get you back on track and fix your credit in as little as 90 days!

2. Protect and Preserve your Credit Score. Again, this is an obvious tip, but probably the hardest. It reminds of junior high and high school, when the teacher started off the year by stating, "You all have A's. It's up to you to maintain it." Consider hiring a company like Life-Lock, that can keep you up to date with any misuses or hits on your credit. This will give you the greatest chance of maintaining the credit score you've worked so hard to maintain.

3. Shop Around. Don't just look for who has the best interest rate. Consider the other costs- discount points, and even the type of loan. Is it an adjustable, fixed? Holden Lewis of Bankrate.com suggests comparing the total fees and monthly payments that you would make under 3 or 4 loan deals to figure which option works best for you and your family.

4. Know you're borrowing limit. The FHA suggests that your house payment should equate 31% of your gross monthly income. Some housing counselors suggest a safer 28% or 30%. Roughly, if your monthly income is $4,200 before taxes. According to the FHA percentage of 31% you can afford a monthly house payment of about $1,302. The monthly house payment includes the principal, insurance, taxes and association dues.

5. Don't "reset" your Refinance Calender to 30-years. In other words when you've lived in a property for 5 years, ask your lender to amortize the loan for the remaining years of the old loan. By shortening the length of the loan you end up saving money on interest that is automatically included in your monthly payment. It may raise your monthly payment, but in the long run will actually save you a lot of money.

6. Consider a "no closing cost" Refi. If you are fortunate enough to have positive equity in your home, but you don't have a lot of money around you may think you can't qualify for a refinance. Think again! With a "No Closing Cost" Refi you can get your loan refinanced and not pay anything out of pocket. Holden explains that you end up paying a slightly higher interest rate as the closing cost gets factored in to your monthly payment.

7. Small downpayment? See the feds. Most lenders require 10% of the home price to be used as a downpayment, refinancing requires at least 10% of equity to qualify. For those borrowers with good credit, try applying for an FHA loan. They only require a 3.5% down payment. If you are a veteran, apply for a VA loan, no down payment is required. For those who aren't veterans or won't qualify for an FHA loan go to http://www.americandreamdownpaymentassistance.com/state.cfm?code=NV.The American Dream Down Payment Act is a down payment assistance program that gives grants to assist low-to-mid-income families and uniformed employees such as, policemen, firemen, sanitation, maintenance workers, and teachers achieve homeownership. The link above is for the State of Nevada.

8. Small loans? Act early. In the past lenders were paid a certain percentage of the loan. The more money they lend, the more money they would receive. Changes made April 1st have since made it illegal for lenders to be paid this way. In the past those that needed smaller loans or loans less than $100,000 weren't given the time of day. Now, big lenders like Wells Fargo as well as the small independent lending brokerages are more willing to lend to these kinds of borrowers. Since there are many a home here in Las Vegas that is under $100,000, this change is an important change.

9. Make an extra payment any time of year! You've probably heard that an extra mortgage payment made at the end of the year will shorten the repayment time. This is true. But, you don't have to wait until the end of the year, how about sending in that payment after you received your tax return, or after a bonus? Not only will it save you interest and shorten your repayment, but may come in handy at the end of the year when we all tend to spend a bit more.

10. Behind on your payments? See a housing counselor. According to a study by NeighborWorks America, Delinquent homeowners who receive Department of Housing and Urban Development-certified foreclosure counseling are more likely to keep their houses and not lose them to foreclosure. When late-paying borrowers get counseling, they are more likely to get a mortgage modification, which can reduce their payments. Click here for Housing Counselors in Nevada. http://portal.hud.gov/hudportal/HUD?src=/states/nevada/homeownership/hsgcounseling

The most important factor when deciding on purchasing a property is to shop around! Talk to several lenders- ask about their interest rates, their fees, discuss your needs and find out how much home you can afford. These factors will all come to play when you are ready to purchase a home. Not only will it help aid in the type of home, area and how much to put an offer in on... but can be very helpful when we negotiate the offer- like when asking to have your closing costs paid by the seller!

For more information about the Credit Counseling company, or if you would like to speak with some lenders, please don't hesitate to contact me at kathy.herron@cbvegas.com.

Foreclosure Sales: A First Step in Recovery?

A few years ago when the banks flooded the markets with foreclosures prices dropped fast. Ever since then homeowners have been fearful of another wave referred to as the "shadow" industry that would cause the home prices to go down even further. But economists and real estate agents across the country are noticing that the hardest hit cities are actually seeing the first steps in recovery because out of state and international buyers are scooping up these foreclosures.

The low prices are leading investors to snap up foreclosed homes in Detroit, Las Vegas, Miami, Phoenix and Tampa. The severely low priced homes are reducing prices in the short run, but they're also thinning the supply of homes -- clearing the way for higher prices in the future.
For some buyers, the deals are now too good to pass up. A highrise studio condo on the Las Vegas strip that cost $500,000 at the height of the housing boom is now selling for roughly one-third that price. Across the valley, we've seen an average drop of almost 60%.

News reports suggest that "such sales have helped shrink the combined supply of unsold homes in those five cities by 13 percent over the past year, according to an analysis of local listing data. Home prices in each of those markets are at or below 2002 levels, according to the latest reading of the Case Shiller index."

"If we were to see several consecutive months of supply getting smaller, it would point to an improving housing market," said Celia Chen, senior director at Moody's Analytics. "Even if it is investors buying them, they are renting them out in hopes that prices in the next several years will rise." As of today there are only 14,015 homes currently available here in Las Vegas, which is about a 4 month supply- a great sign we are on our way to a recovery. There are 12,787 homes that currently have offers on them (a bulk of these are short sales waiting on bank approval), and 14,232 homes that have sold year to date.

It's important to get rid of foreclosures and other risky properties so the market can turn around. When foreclosures and distressed properties are sold, home prices fall. But as the supply of cheap homes shrinks, prices stabilize. Homeowners who had put off moving because they didn't want to sell during the downturn grow confident that they can fetch a decent price. That prompts more buying and selling and thus forces home values to rise.

Most of the current foreclosure sales involve investors: Private equity firms; foreign and out-of-state buyers seeking vacation houses; individual investors hoping to rent out or quickly sell properties for a profit.
In March, 35 percent of previously occupied homes sold were bought entirely in cash, according to the National Association of Realtors. Here in Las Vegas it's actually about 50% of all sales.

Economists caution that a second wave of foreclosures could throw the housing market back into turmoil and few see home prices rebounding before the end of this year. However, with the current focus forcing banks to do more to help people stay in their homes, and create programs that shorten the short sale time frame, it's hard for me to believe this will occur again. If anything I think it may just become a small, but consistent, trickle.

Banks Push to Improve Foreclosure Procedures

Time is ticking for banks to improve their foreclosure methods. U.S. regulators have given 14 financial institutions until mid-June to create better processes on their servicing methods and another 60 days to implement the changes.

The changes will no doubt cost the banks a considerable amount of money to implement. Since the foreclosure mess erupted last year, JP Morgan Chase has already spent $1.1 billion to create and apply the changes and Citigroup predicts the changes will boost expenses by as much as $35 million a year.

On Thursday, Fannie Mae and Freddie Mac rolled out new protocol designed to increase the number of successful modifications. The guideline will require servicers to reach borrowers as soon as the first missed payment occurs and will continue to with the intention of modifying the loan. They'll also pay more to the servicers that meet certain benchmarks and establish timelines for banks to modify loans or process foreclosures.

The Regulators have asked the banks to create programs that establish a single point of contact, have deadlines that are "appropriate", and hire more people to facilitate the programs and assist it's borrowers. These are the minimum requirements and some have already made the necessary changes.

Last June, Wells Fargo began assigning two employees to each borrower seeking a loan modification. They found that the program "significantly improved customer communication and the modification process," said spokeswoman. Wells Fargo also plans to expand the same effort to foreclosures and short sales.

Ally Financial has assigned borrowers a team of employees to help them gather documents, execute a final loan modification or advises on other foreclosure alternatives.

J.P. Morgan is working on a software program to make it easier for employees and borrowers to track loan-modification requests. Last year, it started providing some borrowers with a "relationship manager" to advise on the process. No word yet on when the software will be available.

Citigroup now provides borrowers with a single point of contact for gathering documents and handling short sales. In the next months, it will roll out a "concierge" system that will assign a small team of employees to help delinquent borrowers and homeowners at risk of default navigate the system.

Bank of America has begun its version of a single point of contact but declined to provide details. For the past year or so they have used the Equator system that enables better communication and facilitation of short sales between real estate agents and the negotiator. Currently the time frame of the short sale, with the use of this system, is about 5-16 weeks. Bank of America is continues to make changes to their practices in order to reduce this time frame further.

As far as "appropriate" deadlines, the Los Angeles Neighborhood Housing Services says it takes an average of 141 days for borrowers it works with to get an answer after completing an initial loan-modification request. The nonprofit group says Wells Fargo has the fastest turnaround with initial reviews averaging 79 days. A Wells Fargo spokeswoman said 60% of borrowers receive a decision five days after the company receives a complete package, up from 45% a year ago.

Ally Financial said it responds to the average borrower within seven to 10 days of receiving a complete financial package.

At Citigroup, the goal is to give borrowers a final answer about a permanent modification within 22 days of their final trial payment. "On average, we do that," said Sanjiv Das, chief executive of the CitiMortgage unit.

When it comes to staffing, J.P. Morgan said it will add as many as 3,000 new home-lending jobs, BofA said it hired roughly 3,000 people in the first quarter to work on troubled mortgages and Citigroup said it will expand its loan-modification unit by 500 employees. Wells Fargo doesn't expect to increase staffing because according to their reports the number of borrowers behind on loan payments is declining.

As far as how these programs will affect the number of short sales or foreclosures we will have to just wait and see.

Don't Walk Away from your Home

There has been a lot of talk about short sales and loan modifications on various news channels, and in conversations with real estate agents, and those in the industry. But, what about the people who are dissatified with the value of their home and don't qualify for a short sale or modification?

With no solution in sight many homeowners dealing with underwater mortgages who can still afford to pay their mortgages are simply walking away from their mortgage, even when they can afford the payments.

The idea is known as a strategic default and the prospect of simply walking away has increased across the nation. In the past, lenders traditionally looked at the degree of a home's value depreciation to identify the risk of strategic default. But FICO Labs research now shows that these borrowers are only twice as likely to default as those whose home has managed to keep most of it's value.

In fact, true strategic defaulters are found to be savvy investors. They have higher credit scores, and fewer instances of going over credit card limits. The findings show a vast difference from their counterparts. There is even a rise of notable celebrities walking away from their mortgages.

The reality remains, however, that the ramifications of of simply walking away can haunt a homebuyer for years to come. "Walking away is a very serious matter," says Glamis Haro, a lending manager at Union Settlement, a credit union in New York City. "Just one late report on your mortgage can seriously damage you."

"In the past," Haro says, "a 30-day late payment on a home loan could result in 30 to 40 points being deducted from your credit score. But in today's unforgiving credit market, one late payment can now result in up to 100 points being deducted. And lest homeowners think they can take the heat, a late payment stays on the record for 7 long years. After 120 days of no payment, the delinquent homeowner enters what Haro calls "five fives" status – the notation (5-5-5-5-5) made on a borrower's credit report when they've gone beyond the point of no return. "You're considered unbankable," she says. "It could take years of working with a financial adviser to get back into lenders' good graces," she adds.

While there are some experts who claim that walking away is actually beneficial in the long run for struggling homebuyers, the risks often far outnumber the benefits. "A public record, such as a bank judgment or collections account, will affect a borrower's credit for 10 years from the last date of payment -- and any judgment is enforceable for up to 20 years," Haro says.

Karen Metoyer, a housing and credit counselor at Clearpoint, recommends that you work with a HUD-certified housing counselor, if your house is underwater, rather than try to work on a modification or refinance on your own. She says, "having a third party negotiate the modification or refinance helps give your financial situation credibility, because the banks tend to act more quickly in that case." These free counselors will also suggest if perhaps a reverse mortgage, refinance, or modification is your best option.

To find a HUD-certified housing counselor click here: http://portal.hud.gov/hudportal/HUD?src=/i_want_to/talk_to_a_housing_counselor

Short Sales and Taxes

With the tax filing deadline now passed, it's a bit late, but I wanted to give my readers a bit of information about short sales and taxes. If you sell your house via a short sale, is it true you have to pay taxes on the forgiven amount?

Frankly, it depends. Usually under the tax laws, if your debt is canceled or forgiven, it is defined as taxable income. However, Congress thought this didn't make sense: You lose a house by foreclosure (or short sale), and to add insult to injury, you have to pay tax on this phantom income? In response they created the Mortgage Forgiveness Debt Relief Act of 2007. This relief act allows the homeowner to exclude up to $2 million -- if that debt was on your principal residence.

Unfortunately, if the debt forgiven was on a second home/vacation/investment property, then you are out of luck; the amount that was forgiven (or canceled) is considered taxable income.

If your canceled debt was on a refinanced loan, the law gets a bit murky, if you used the refinance proceeds to substantially improve your house, then there is no tax to pay. But if you used those proceeds for other purposes then the cancelled debt is taxed.

The IRS has an excellent, free, publication on this topic, called "Canceled Debts, Foreclosures, Repossessions and Abandonments." It is Publication 4681, and is available on the IRS website -- http://www.irs.gov/pub/irs-pdf/p4681.pdf -- or by calling (800) 829-3676, or (800) TAX-FORM.

Since short sales are a part of the nation's market and will continue to be around for some time. It's important to know this fact. If you know someone who either has or may be considering the short sale option. Please send them this article or direct them to the IRS website for more detailed information.

New Home Builders plan to go "Green"

New Home Builders have announced that consumers can expect to see more and more green homes in the coming years. On Earth Day this Friday, Meritage Homes will begin offering "net-zero" homes or homes that produce as much energy as it consumes. Prices for the homes will start at $140,000-$160,000 and will be available in Arizona, California, Colorado, Nevada, and Texas. Meritage already offers a 9 panel rooftap solar-array as a standard feature, but for a $10,000 upgrade your home can have 24 additional panels that will reduce your utility bills to zero.

"Net-zero" properties are very common in Canada amongst large home builders, but this is the first time a corporate builder has been able to make the homes affordable with this kind of efficiency. With $4 a gallon at the pump, and the cost of living only going up you can expect to see a push to build homes that cost less to operate industrywide. “Shiny granite can only go so far to lure buyers from low-price foreclosures," says Nate Kredich of the non-profit U.S. Green Building Council.

Here in Las Vegas, we are already noticing builders going green. Shea Homes, a family-owned builder, has been providing solar powered options with every new home built for years! When the economy was at it's peak every one of their homes had solar panels automatically included, now they give you the choice. Their new active adult community in the Northeast part of the valley is offering it's consumers 3 choices. The "Complete" package, which is included in every home, offers homeowners a home with Energy-efficient gas forced air heating, energy efficient lighting low-flow fixtures that reduce water usage while maintaining a high-pressure performance, low VOC products, and eco-friendly flooring just to name a few. The "Plus" package adds solar-powered attic fans, an electric vehicle charging station, and a WeatherTrak Smart Sprinkler System. When you purchase a home with the "Ultra" option you can expect your home to be EFL Green Certified. Everything you can imagine that can be green has been put in this home. In addition to the above examples, you can expect windows, ductwork, appliances, solar roof tiles, sensor lights, insulated garage doors, and the ventilation system to be optimized for the lowest carbon footprint. Prices range from $147,000-$247,000 for the Complete, $154,000-$255,000 for the Plus and $177,000-$278,000 for the Ultra.

For more information about Shea Homes' new community, or where you can find more builders in the Las Vegas valley offering green options send me a message, I'd be happy to give you the information or show you what's available.

This just in... Prices at 1990 level, sales increase

Existing home prices here in Las Vegas have reached their lowest level in 21 years! Statistics show that due to the low prices, our city also found an increase in sales which we haven't seen in six years.

"The median price paid for existing single-family homes, condos and town homes fell 10 percent year-over-year in March to $108,000, and for the year is now $109,000," according to a report released by Las Vegas-based SalesTraq.

Buyers took advantage of those low prices in March when 5,114 housing units were sold, the average price per square foot of homes sold in March was $70.57, an 11 percent drop from March 2010.

Cash Investors still lead the pack as they accounted for more than half of sales. 7 out of 10 existing home sales were distressed properties accounting for about 42% of foreclosure sales, 10% were sold at a auction and 18% were short sales. Please note that these statistics account for properties that have actually sold. As of today's date we have over 14,000 properties currently listed, and just under 13,000 properties with accepted offers. A big percentage of these being short sale properties awaiting approval from the bank.

Housing statistics don't show a definitive recovery as of yet, but we're are seeing an increase in sales as seen in the above statistics. I'm also seeing that more people are willing to choose short sales as their option because the converstation is much easier to have amongst each other, the process is getting easier and better. Banks are more willing to accept short sales than they were last year, it's a win win.

In the existing home market, the median price of short sales captured the highest price at $120,000. That was followed by traditional sales at $108,500, foreclosure sales at $106,500 and auctions at $93,500.

Interested in purchasing a home in Las Vegas? Would you like more information about the Las Vegas market? Send me an email and let's get started!

What Canadians need to know about buying real estate in the US...

A recent survey conducted by the Bank of Montreal states 1 in 5 Canadians are interested in buying real estate in the United States. The National Association of Realtors reports that last year 23% of international buyers from Canada represented the largest portion of international buyers and have so for the past three years. Canadians are obviously taking advantage of the falling prices. Many of these buyers are "snowbirds" , trying to escape the harsh winters for the warm, sunny days of the southern states. Before YOU decide to take advantage, here are a few aspects to consider:

1. DETERMINE YOUR WANTS AND NEEDS
The first thing you need to ask yourself is “why do you want to buy a property in the U.S.?” Then, “Will the home be a vacation home, or do you plan on renting the property out?” Next, think about where you want to live. This is especially important if you intend to use this property as a vacation home. Think about the kinds of activities you and your family want to have: surf, ski, camping, etc. Do you want to live in a city, within a certain distance of the city, or do you want to be out in the country? What amenities does the property have to have? Think about everything you can possibly think of and determine what needs you’d like, but can live without.

2. LOCATION
Once you’ve determined your needs, it’s time to narrow down your search to a city and state. Ever hear that old real estate adage, "Location, location, location."? Aside from price, location is the most determining factor when purchasing a property. Every state looks completely different than each other so this is where the activities you decided you wanted will help narrow it down. More often than not if you are a "snowbird" you're probably wanting to be in warmer locals... try any of the southern states: Florida, Arizona, Nevada and California are the current Canadian favorites. When you've determined which states you are interested in go to sites like the city's chamber of commerce and contact a local real estate agent (like myself here in Las Vegas). The Chamber of Commerce site will have descriptions of all the city has to offer: schools, neighborhoods, amenities, etc. and in most cases will send you a booklet of their city for FREE. For more information about Las Vegas, Click on the Link on this blog located to the right of your screen under “Useful Links”.

3. SEE THE PROPERTIES
Be prepared to visit the city you are interested in and get to know the area first hand. Don't buy a property without visiting it in person, even if you don't intend to live in the property. It's important that you determine if the property is worth your investment. Find out if any repairs are needed, appliances need to be purchased, and make sure it's in an ideal location (i.e. no dogs barking, planes flying over head, not located near an airport, etc.). Drive around the area during both day and night. Check with your real estate agent to see if resale values are on the decline and look at local crime rates. Other questions to consider are "Do other investors report higher maintenance costs and repair bills than other neighborhoods? Is there a high rate of tenant turnover and a high vacancy rate? Are there any litigations going on within a development? Etc." Frankly your agent should be your main source of information. Either giving you this information, or directing you where it can be found. They should also give you an idea on the market as a whole, explaining what type of transactions you may encounter like Foreclosures, Short Sales, etc. This will help determine where to focus your efforts and keep you from wasting time and money.

4. TAXES- HIRE A LOCAL PROFESSIONAL
If you're a Canadian resident and spend less than 121 days in the U.S. in a given tax year, you are not considered a U.S. resident and do not have to file an income tax return. However, if you do stay longer and don't properly do some tax planning you risk having to pay tax in both countries. Property taxes may also vary as some states charge more if the purchaser resides outside of the U.S. The Bank of Montreal says its important to be aware of mortgage costs as interest rates also vary within the two countries. I suggest seeking professional help from an accountant within the state you are interested in buying property to answer any tax-related questions as tax laws vary both nationally and locally. Also, make sure to ask them how you’ll be affected if you decided to sell the property.

5. HIRE A PROPERTY MANAGER
If you plan to live in the property for part of the year, but plan to leave the property vacant or choose to rent out the property while you are gone, hire a property manager. This person will make sure the property is maintained, will make sure it doesn't get burglarized or vandalized, and will collect the rent from the tenant.

*If you're planning to rent the property out for all of the year, the U.S. IRS will consider you a "non-resident alien" and will require you to pay income tax on the rent that you collect. There is a 30% withholding tax on the rent you collect, and must be deducted by you or the property management firm you hire. In my experience, the property manager usually takes this out before sending you your check, but make sure you decide what you want to do before you hire the management company. This may help you determine the company you use.

6. FINANCING
For financing options, the Bank of Montreal suggests using a U.S. financial institution that has ties to a Canadian bank. "Staying within the family can save a lot of time and headache," says Laura Parsons, BMO mortgage specialist. "Alternatively, seek out Canadian banks that are already established in the U.S. and the area you are looking to purchase in." If you intend to pay for the property in cash you may need to open a U.S bank account. Ask the local real estate agent, or financial institution to advise if this is necessary.

7. INSURANCE
Insurance is another major consideration. Most Canadians may know that when traveling to the U.S. medical insurance is required but, may over look the need for home insurance. When insuring the property, be aware that some areas that often have hurricanes, flooding, or earthquakes often will have higher insurance costs. You'll also want to make your sure have adequate liability insurance. If you'll be hiring trades people to work on your property, make sure they are covered with workers compensation. Again, your real estate agent can help suggest insurance agents.

In summary, do a lot of research, ask a lot of questions, and when push comes to shove speak to local experts who can guide you step to step. Follow these steps, and you too can take advantage of these record lows and make a good investment.

New Foreclosure Bill looks to protect Nevadan Homeowners

In Carson City, a new bill focused on foreclosures looks to allow homeowners in Nevada the opportunity to walk away from a foreclosure or short sale without the threat of a lawsuit to pay back the deficiency. Under Senate Bill 346, discussed Tuesday in a Senate Judiciary Committee, loans would essentially be modified so single-family residences would be protected from judgments even after they no longer own the property.

Current law already provides some protection, but this bill would specifically target single-family homeowners whose property is their primary residence. Opponents argue the passage of this bill would result in a further plummet of prices and home values as there will be no consequences for the homeowners to simply walk away from their property.

Assemblyman Tick Segerblom, D-Las Vegas, feels this may be the only way to affect immediate mortgage issues and he dismisses concerns that the bill would have a significant impact on housing prices. His hope is that the homeowners will have leverage against the banks, and "if it's a choice between the bank suffering or the homeowner suffering, I'd rather it be the bank."

The other concern is that the passing of the bill would detract investors.
Showing that Nevada doesn't stay true to it's contracts. I disagree with this idea. Granted I have not read the bill, but the homeowners aren't the reason they can't pay their mortgages. They apply for mortgages with the intent to pay them back and I think ultimately they would prefer to stay in their homes. Unfortunately, the market tanked and jobs are scarce- they are simply unable to continue to pay their mortgages. Most people are trying to modify their loans, but to no avail. So their ONLY options are to either walk away from the property, or hope that the bank will forgive their deficiency with the use of a lawyer. To say homeowners are getting away scott free if the deficiency were waived is, I'm sorry to say, mistaken. Their credit is affected, they have to move out and find another home/job sometimes out of state, and unless the banks become more willing to work with homeowners this is the only "right" thing to do.

As for the idea that investors won't want to come to our state and invest?I disagree also. The only investors that would probably be affected by the passing of this bill are the ones that are buying up notes with the intent to go after the borrower. I'm sure these investors will be alright, they're smart people who can make money a different way.

As for the prices being affected, I would think that if the banks weren't allowed to go after the deficiency they would either hold out for more money at the time of purchase or would be more willing to work to modify the loan. Both good things for the economy, and homeowners. I guess time will only tell. Will this be the end of all problems? No, of course not, but personally, I think this is a step in the right direction. As of yet
no action was taken on the bill.

How to be competitive in a buyer's market:

Despite what is said on the news, you may be surprised to learn that not every market or even every zip code is distressed. Many areas, even here in Las Vegas, are finding a high percentage of multiple offer situations due to this very fact. So what can you do to be competitive?

First, come ready to buy. Before you head out on your search have a clear list of objectives which include your criteria. Know what amenities are must-haves, what you can live without, and what areas you are interested in.

Next, if you are planning to finance, get pre-qualified. This is probably the most crucial step in today's market. Many clients I've worked with miss out on their dream home because of hesitating on this fact alone. Pretend you are selling your home, if two offers are presented for the same amount of money, but one has already started the loan process and has documentation from the lender stating they are financed vs. a person who will get it to you when they get around to it... who are you more likely to want to do business with? The good news is that you only have to go through the process once, most people don't realize that the pre-qualification letter is "good" for thirty days. This comes in handy should interest rates go up in that time, you'll be guaranteed to keep the lower rate as you have "locked" it in.

Next, strategize with your agent . Your agent should be able to tell you if you'll be encountering a multiple offer situation as soon as the offer is submitted, so expect there to be some negotiations. Unfortunately, they won't be able to disclose how many buyers you are bidding against or what their offers may be, but together you can come up with a strategy that will give you the best opportunity to get your offer chosen. Your agent should discuss market stats that show what comparable homes have been selling for. This will be a good indication of where your offer should be at, above or a little less than list price. In this market, sellers, especially those that are "equity sellers", won't be as inclined to accept less than list in these situations. If paying over price isn't ideal Sellers may ask for certain concessions, such as closing costs, and requests regarding closing dates. Some of these requests may seem reasonable to you, but don't be afraid to stand your ground if others are too far-fetched.

And finally, stick to your guns. If the multiple offer situation goes back and forth, it's easy to get caught up in the excitement of a bidding war. Know what price you won't go above and stick to that price. I'm a firm believer in everything happens for a reason, and you should take the same approach when purchasing real estate. If the ideal home becomes unreasonably expensive or the seller/bank is asking for ridiculous concessions, don't be afraid to walk away. Don't let pride or ego take over. This is still a business transaction so maintain your composure, try to keep your emotions out of it. If it doesn't happen, you will find another... and sometimes it ends up being better than the original, so stay positive!

If you use these simple tips to help you navigate a tough market you'll be signing on the dotted line for your new dream home in no time.

Update on Fannie and Freddie

The government has agreed that Fannie and Freddie will be no longer. They plan to roll out the plan soon with the intention of completing the phase out in 5-7 years. The sole purpose of getting rid of Fannie and Freddie is to get government out of the mortgage industry and put the private sector back in. Right now, 9/10 mortgages are backed by the government. In addition to removing themselves, the government is also proposing changes to FHA loans in order to level the playing field. They still will require 10% down on conventional loans, but will raise monthly premiums another 25%, which will make qualifying for a loan a bit harder. The hope is that by raising FHA monthly premiums, it will be harder to qualify for the loan and buyers will be more inclined to go back to buying conventional loans which will be owned by private investors. The idea is that if private investors are ones setting the terms they will keep interest rates lower in order to compete with each other. Let's hope they're right. Guess we'll just have to wait and see.

Fannie Mae and Freddie Mac- no more?

For the past year, rumors have been swirling over the fate of Fannie and Freddie, especially with the talk that China may sell off their percentage of the Fannie and Freddie stocks and the recent announcement that Fannie and Freddie were "delisting" from the New York Stock Exchange. A decision by the Treasury was to be released on the future of the mortgage firms at the end of January, but has since been pushed back to mid-February. Reports are saying the statement could be released as soon as the 11th.

The talk seems to come down to the overall shut down, combination, or sale of the firms by the end of 2012. The reason for the drastic decision is that confidence is at an all time low and keeping them around would cost the US taxpayer another $73 billion, bringing the total bailout funding to $215 billion, a position that cannot be sustained in the long run.

Republican Scott Garett accuses the two mortgage companies of being the major cause of the financial crisis. He proposes that the two companies be overhauled, but did not say outright that the companies should cease to exist, privatize, or reduce in size.

The Obama Administrations has proposed the creation of a new federal subsidy, but Republicans don't feel that's the best solution. Since the elections, Republicans, in the House and Senate have been writing bills and amendments asking for the end of the bailouts or for an overhaul of Freddie and Fannie. Currently, Rep. Jeb Hensarling, the author of the sole bill in Congress (H.R. 4889), asks that any further bailout of the two mortgage companies be halted and for both companies to close. As of this moment, the bill is stuck in the House Committee on Financial Services and any action does not appear to be expected.

Many fears surround the topic, suggesting the housing recovery remains too fragile and feeble for the government to abandon Fannie and Freddie anytime soon and that the continued bailout is our only option at this moment. Needless to say, it's obvious something has to be done.

What would you like to see happen to Fannie and Freddie?

Cash is King in Las Vegas

Yesterday, the Greater Las Vegas Association of Realtors reported that in January more than half of the transactions were cash purchases. For the most part, these cash investors are looking to rent out their investment properties. Paul Bell, GLVAR's president, believes that the cash investors are crucial to our Las Vegas market, "without them, the homes would sit vacant and inventory would rise. With low rents and attractive single-family residences available, many tenants are opting to rent their own homes rather than live in complexes."

If you are looking to invest in Las Vegas real estate, or are perhaps looking to rent a single family residence, please don't hesitate to contact me.

Reverse Mortgage Loans, and what they can do for you...

Late this morning, agents in my office were introduced to a few reps from Wells Fargo, the topic they discussed referred to Reverse Mortgages and the great opportunities it has for our clients. I am so excited about what they shared that I had to let you know about it right away!

First let's start off with a little definition, what is a Reverse Mortgage?

The easiest way to describe a reverse mortgage is that rather than the traditional mortgages, where you pay a monthly mortgage payment, the reverse mortgage is just the opposite... the bank pays you!

I know what you're thinking- "That can't be right. Why would the bank pay me?"
First, in order to qualify for the FHA-insured loan, you need to be at least 62 years of age, and all parties involved in the transaction (specifically those placed on title) will need to be as well. The only thing you'll need to submit is documentation on your assets. There is no credit check or Loan to Value ratio necessary to qualify for the loan! You can choose to use the loan in 3 ways. You can take out the money as a lump sum, take out part of it as lump sum and use the rest as a line of credit, or you can draw out from the line of credit and pay yourself a monthly income. The line of credit can be expected to increase over time (as long as money remains in the line of credit). If you draw out any money and use it as income, the income is tax free.

To clarify, you must have equity in your house in order to qualify for this loan. But, if you've lived in the property for awhile you have probably accrued some equity. This is a great thing to do if you happen to be a homeowner over the age of 62 who finds they have equity in their property, but are finding it difficult to keep up with the payments of their current mortgage.

Let's discuss what property types are eligible for this loan...
you can purchase a Single Family residence, HUD-approved condo, Planned Unit Developement (PUDs), Two- to four-unit properties (one unit must be occupied as a primary residence), or a manufactured home built after June 15, 1976.

Requirements of the new home
The home must be the primary residence, must be occupied by the borrower within 60 days from close date, and construction must be complete, properly habitable, and a certificate of occupancy or its equivalent must be submitted prior to the loan application.

It is essential that if you receive a reverse mortgage that you pay your taxes, your insurance, your HOA dues, and is kept in good shape.

Wells Fargo wants to ensure you are not being pressured, so all seniors wanting to apply for a reverse mortgage must first attend a meeting with their local rep (which I can get you in touch with if you live in the Las Vegas/Henderson/North Las Vegas Valley), then a counseling session with a Hud-approved counselor. These counselors will send you a packet of information, and will then speak to you on the phone. The conversation typically lasts for about an hour, and is to ensure that no one is pressuring you into the application and you fully understand what this mortgage entails. Counseling is also required to be attended by all parties in the transaction, regardless if they will be on title or not.

Wells Fargo is the nation's leading originator of reverse mortgage loans. In December of 2010, here in Las Vegas, they closed 1,832 loans. Bank of America had only 837, which was the closest of their competitors. It is expected that more of these transactions will happen more frequently with the expected retirements of the baby boomers and the current economy we find ourselves in. They are here to help you and can answer any questions you have about the program, also known as the Home Equity Conversion Mortgage (HECM). If you would like more information about this loan, please contact me or contact your local Wells Fargo Home Mortgage rep.

How to Sell Your Home in a Slow Market

Although the real estate market has slowed in recent months, there are still plenty of people looking to buy a home. If you know how to prepare your home, when to allow access for property showings, and are willing to consider offering buyer incentives- you can find the right buyer, even in a declining market.

Before you put your home on the market, take a once over of the property and make sure that all basic or minor repairs are completed. Nothing can turn off a prospective buyer quicker than little things. These repairs don't cost a lot of money and buyers are likely to believe that the larger things may be neglected too if the little things aren't maintained. You want buyers to know that you have pride in your home, so make sure that all of the small repairs are taken care of. Make sure to fix loose railings, torn screens or missing hardware on cupboard doors as these do not cost much to repair.

Keep your home clean throughout the time it is on the market. Its important, especially in a slow market, to have your home available to show at a moment's notice so vacuum regularly, keep kitchens clean, grass cut, and windows washed.. The more often your home is shown, the more likely it is that your home will sell.

Have your home staged by a professional. Home stagers have become a booming business and a professional home stager can help you remove clutter and depersonalize your space. If cost is an issue, you can remove the clutter and personal items yourself. Some real estate agents can advise you on how to arrange the furniture or what pieces to remove so your home is well received. I, myself, have a background in Interior Design and Visual Merchandising so I can certainly help you with this. Don't get too crazy with the removal of furniture, unless of course you intend to keep the home vacant while you are trying to sell the property, but, any pieces that are difficult to maneuver around or are unnecessary should be cleared away. It's important to remember that prospective buyers want to picture their family in the home, not yours and a home full of personal clutter won't show the potential your home offers.

Keep pets contained while your property is being shown and make sure that your cat litter box is always clean and waste of any kind is thrown out (preferably outside of the property). Nothing will turn off a prospective home buyer like a home that smells. Also, make sure that if you have a dog, that you either take your dog for a walk while your home is shown or is put away. Many people are afraid of dogs and although yours would never bite or wouldn't jump on people, its best to remove them to keep buyers safe and to make sure the buyer doesn't accidentally let the pets out of the house if you intend to not be present during the showing.

Be realistic in your expectations of the price you will be able to sell your home. Forget about what could have been and focus on what your home is worth now. In a buyer's market, buyers won't negotiate much. They know that you want to sell your home and a home that is priced too high is likely to be dismissed. You and your realtor should come up with the best price that will not only get your home sold quickly, but will create a lot of activity and interest in the property. High activity and a reasonable price will guarantee a quick offer.

In a slow market, it is crucial to hire a real estate agent so your home will sell in a reasonable amount of time. Yes, there are ways you can list your home for sale by owner using the internet, but nothing beats the experience and know-how of a real estate agent who is able to take care of everything in order to sell your home. This is especially true if you plan to sell your home as a short sale. Navigating through the process of a short sale can be difficult, confusing and time consuming, only a professional should handle the transaction.

Selling your home can be a stressful time, but if you remain patient, flexible, hire the right agent and can think of it as a business transaction, you'll be able to sell your home in a reasonable amount of time. There are buyers out there and the key is to make your home the best one on the block for the best price.

Contact me today and let's discuss your situation and my plan of action on how I will get your home sold!

Rent vs. Buy

To Rent or to buy? That is the question! With the amount of foreclosed properties, short sales and bankruptcies occurring in this economy there has been a huge fluxuation of renters in the market like never before. These instances, unfortunately due to their decreased credit scores and rules, renting may be the only option at this point and time.

The people I'd like to focus today's discussion on, are those that already are renting or may be thinking of renting. In Las Vegas and other cities in my local market, I'm seeing a big majority of young families, recent graduates, and retired families renting properties. These renters are paying any where from $900 to over $2000 per month in certain areas in the valley, when they could be using that money towards the purchase of a property... and more often than not, could be paying less per month on a mortgage!

So, let's take a look at the differences between buying and renting.

As you can see from this example, when you "RENT" the longer you stay in the property the more you end up "WASTING". In the example shown above, the renter is losing out on $54,000 if they stay 3 years, and $90,000 if they were to stay for 5 years. Could you use $54,000-$90,000 in your savings? I'm sure you could come up with better uses of that money in this economy!

Now let's look at if you "OWNED" a property... notice that the property tax you pay each year is a deduction, and the amount of money you receive if the market appreciated even 1%... you are receiving an extra $66,514 in 3 years or roughly $125,000 in just 5 years. Notice your "costs" in this example are at a 6.5% interest rate- imagine how much you can gain at the current interest rates of around 4%! Plus, you'll be getting in when home prices are low so you can save even MORE money and you have the potential to gain quite a bit of equity as the market rebounds!

This past year in fact I helped a couple get into their first home, where their payments ended up being around $800 a month!! As I've said time and time again, there is no time like the present to buy real estate. There is already talk that interest rates will go up before the end of the year, and this may be your last opportunity to take advantage of these historic lows. So contact me today and let's get started!

Down Payment assistance?

If you are like most people, you recognize that now is the best time to buy a home- but unfortunately you don't have an extra $5000-$10,000 dollars just lying around for a down payment. So what do you do? Luckily, state and local governments across the nation have created "down payment assistance programs" or low- and no-interest loans for people just like you!

The number of programs, about 1,000 nationwide, have increased 3% to 5% in the last six months alone... Some banks are now far more willing to work with people who need down payment assistance, or were considered too risky 18 months ago. State housing agencies say that they're seeing the biggest spike in lender support since before the housing downturn and foresee this will continue to increase this year.

These programs specifically target low- and middle-income buyers who are brand new homeowners, or haven't owned a home in a few years. Typically, the programs offer up to $80,000 in loans with interest rates from 0% to 2% for people with little or no money to put down. And then, because participants often have to get their mortgage through the programs' preferred lenders, primary mortgage rates are usually about 1% lower than average interest rates. Surprisingly, these programs can be a better deal than FHA-insured mortgages, due to their required annual mortgage insurance, upfront fee, and possibly higher interest rates.

Even cash strapped states are finding ways to fund the programs because they find the programs boost homeownership, which lead to more jobs and higher home prices. "It promotes affordability, gets people into homes and improves the economy," says a spokesman at the California Housing Finance Agency.

There is no national database as of yet, but ask local mortgage lenders and realtors, check state housing agencies and local government web sites to find if a program is currently available in your state. Also, look for programs that offer grants – they may not be able to provide you with a lot of money up front, but you also don't have to pay the money back!

Buying a home for your college student

A new trend among investors is buying a property in the town where their college-bound children will be attending school. The move allows parents peace of mind as the investment would provide a low cost alternative than if the child were paying rent or lived in on-campus housing. For the kids, it's a way of learning responsibility, the do's and don'ts of looking after their own home, and perhaps a chance at being a landlord.

The most important thing to consider when investing on a property with the intent of having your child live in it, is deciding what will happen to the property after he or she graduates. Is the property going to be a vacation home, will you retire their some day, will your child live there once they find a career? Or will you rent it out to another person or family? My suggestion is determine what your intention with the home is, take in to consideration the wants and needs of your child, but ultimately find a home that will satisfy your needs. Find a place you can see yourself living in and ask your agent if the home is in a good neighborhood for renters and/or if renters are allowed (should the home be located in an HOA) in case you decide to rent it out.

So you've found the home you want, now what? My advice would be to speak with your tax advisor to determine the way in which you purchase the property. Ideally you should speak with this person before even finding a property. They can help you determine if your name should be the one on the deed, your child's-in order to save on Capital Gains tax, or if you should put the property in a family trust. Many out of state colleges require a deed or lease agreement in order to receive in-state tuition, so it is important to have this discussion prior to the start of their semester.

Lastly, If the your child intends to have roommates, even if they are with friends, it's important that the living arrangements are spelled out in advance in a businesslike manner. Each renter should sign a lease agreement that covers how much rent will be paid, fees associated with late payments, what additional costs (such as utilities) will be paid by the renter, what facilities will be shared, and house rules such as whether pets are allowed, smoking policies and provisions for parking and laundry facilities if applicable. This will set the tone as to what is to be expected and will ensure your investment is protected and maintained.

Economists look to fix Foreclosure woes in Nevada

Housing experts will soon get together with Nevada legislators to discuss ways to improve our current housing market. Their intention is to increase the amount of short sales and provide even more protection to homeowners facing financial trouble.

Experts say that although our market is seeing improvement, we are still a long way from where we need to be. Reports expect the valley will exceed 20,000 foreclosures this year for the third year in a row. However, reports also indicate that since July 2009 the number of foreclosure transactions have been declining and short sale transactions are increasing. Currently, short sales account to about 30% of our market and are expected to increase throughout 2011. If we can continue to increase the amount of short sales and improve the way short sales are conducted we should see that number increase extensively.

Assembly Speaker Barbara Buckley, who wrote legislation creating our state’s foreclosure mediation program in August 2009, said she expects a push in 2011 to better protect homeowners and make short sales easier. "Currently, when homes are sold as short sales, or are foreclosed, the holders of the mortgage have up to six years to collect the deficiency," Buckley said, "We will be trying to make second mortgages and short sale deficiencies limited to six months."

This will undoubtedly be great news for homebuyers. For now, those that do not get their deficiencies waved can expect to repay that amount long after the sale of their property. “The lenders won’t sue the homeowners, but they will sell the debt to investors who will,” Buckley said. “If you’re making 30 grand a year and they garnish you at 25 percent of your income, you will be an indentured servant the rest of your life."

Regardless of your situation it is best to speak with an attorney as soon as possible. They can answer all of your questions and give you all of your options. They can help you get your loan modified and in some cases your principal reduced. If you qualify for a short sale, they can help you lower and in most cases clear your deficiency.

Obviously, we are a long way from the boom in 2004, but with the kind of legislation being proposed by housing experts and legislators like Barbara Buckley we can get through the recovery sooner rather than later.

What else do you think legislators could do to help our market recover?

Free Online Resource for Struggling Homeowners

Since the creation of the HAMP program (Home Affordable Modification Program), many people have complained about the delay in processing of paperwork despite the hundreds of people hired. By using the free online software at www.FreeMortgageFix.com, homeowner's can expect an expedited response and hopefully a higher percentage of approvals. Johnathon Ende, the CEO of Free Mortgage Fix states, "homeowners can expect help in 15 minutes."

FreeMortgageFix.com's software will calculate your debt-to-income ratio, the current value of your home, and your overall eligibility. Once all has been determined, the appropriate forms are created and then printed with a cover sheet addressed to your lender. The site also provides tips, solutions, a communication log and a to-do list for you to keep track of what's needed from you and your lender.

For more information about the HAMP program such as eligibility requirements, you can go to www.makinghomeaffordable.gov or simply click on the "HAMP-FAQs" link under "Helpful Information".

Paul Bell is the new 2011 president of the Greater Las Vegas Association of Realtors. In his interview he addresses his expectations of the coming year, the rumors of the "shadow inventory" and the state of the Las Vegas market. Some great information that I just had to share. Enjoy!

Excerpts from Q&A with Paul Bell interview from Las Vegas Sun

Do you trust what the numbers are saying for inventory?

We feel like we have a pretty good handle on the available inventory right now, and our discussions with the Department of Housing and Urban Development, the current inventory of 16,500 units (without any offers) includes 500 new home products. That’s a pretty good supply for a population of about 1.9 million people.

What about the discussion of shadow inventory?

Reports from escrow companies are telling me 20 percent of the monthly foreclosures are purchased by parties other than the foreclosing lender. I’d say you have 2,000 to 3,000 units a month that are trying to come to market as foreclosures. There’s another caveat in that there are a number of investors who are buying these foreclosures at the courthouse, and they’ve restored the houses for rent. We’re finding out that you probably have 300 to 400 units that investors bought at the courthouse and are renting them right now. We’re trying to develop a system to track down that number.

What about claims that banks are holding back 10,000 to 20,000 in foreclosure homes from the market?

That’s completely bogus. The banking regulators require (that when) a residential property is foreclosed upon, it’s got to get on the market within 30 days. The only reasons for a delay have been title problems and lawsuits.

What about what the analysts say?

If you look at our short-sale inventory, the amount of property that’s available and in contract and add maybe 25 percent on top of it, those are tomorrow’s potential foreclosures. Two years ago, we were told there would be a mass increase of 40,000 to 50,000 units into our Multiple Listing Service. Guess what? They were already on the MLS as available short sales or ones under contract. Up until last year, 95 percent of those properties were reclassified as foreclosures in the Multiple Listing Service. The banks were saying here is what we’re rejecting, but we don’t have title to these properties. That’s what the shadow inventory really meant.

What are you expecting from foreclosures?

In talking to a real estate attorney, Southern Nevada appears to have gotten through the worst of the subprime loan cycle that was the beginning of the foreclosure crisis here. Those loans ceased to be underwritten in 2007, and we pretty much went through those in 2009. There’s a concern going into 2011 and 2012 about resetting loans, but they are mostly prime loans, according to some lenders, and will be resetting at a lower rate.

What else?

In November, 48 percent of the buyers were all-cash deals. We are attracting investors globally and domestically right now. There’s quite of bit Chinese investment coming here.


But the market has fallen off. Aren’t you concerned?

We started January 2009 with 24,000 listings, which is about 6,000 too many. By June 2009, that inventory dropped to 11,500 units and stayed that way until this past June. During January 2009, not only did we have the first-time homebuyers, but retirees moving here paying cash and (we had) investors. We had more than 47,000 closings on the MLS in 2009. This year (2010), we are projected to go to 43,000. I think to have 43,000, considering that we started with less than half of the inventory of 2009, really shows a very active market here. Since January 2008 when we started seeing the rebound in the number of units closing, about 20 percent of the overall inventory in the region has changed ownership. If we go over 25 percent change of ownership during 2011, I think we are going to start seeing continued overall appreciation, but much more noticeably in master-planned communities where homes have traditionally been better maintained.

So it is more about supply?

I think it’s more of the inventory.

What about 2011 with sales trending down and prices falling and the jobless rate over 14 percent?

We have the first major wave of Baby Boomers retiring. Southern Nevada is one of their top choices because there’s no state income tax here, there’s quite of bit of recreation and no longer will they have to shovel snow.

What is your prediction for 2011?

I think if we can have 36,000 to 40,000 closings, that would be a very good year. It may be down but we might start seeing a rebound in prices in certain areas — master-planned communities like Summerlin and Green Valley. They have been very good in their pricing the past two years, but have had little new construction starts. We have seen values in those areas start to rebound.

What about prices?

If you can take out the properties under $100,000 in poor condition, you will see higher median prices. Job growth is going to be key to more appreciation in this market.

Are we in a double-dip housing recession?

Probably in other parts of the country, but for Southern Nevada there’s too much demand for housing here to have a double-dip recession. There’s so much cash buying right now — 45 percent of the transactions year-to-date (2010) are cash. It is an unheard of number elsewhere in the country. Ten percent is your maximum normal purchase of homes with cash.

What’s your expectations for foreclosures in 2011?

We still think there will be a steady stream, but at a lower pace because of the increased number of transactions getting approved as short sales. There’s quite of bit of incentives for lenders to do short sales rather than foreclose.

Why? And is that good?

The lending institutions have been much better at setting up their systems and communicating with agents. It’s good because they sell for higher prices than foreclosures, and it saves on the cost of foreclosures.

I hope you found this excerpt as inspiring and informative as I have. What did you think of what Paul Bell had to say?

New Form: Energy Audit

Any deals you encounter this year, whether you are the buyer or seller, will find a new form added into your paper work. This form known as the "Energy Audit" is designed to make the buyer aware of the expected energy usage the potential investment/home uses. It must be filled out by the Seller, much like the "Seller's Real Property Disclosure". The energy audit typically costs $300 to $500 and can be waived if both the buyer and seller agree. If the seller chooses to have an energy evaluation performed by a certified inspector, the inspector will complete and sign the form. The audit is to be paid by the seller, but like all other things in the transaction- EVERYTHING IS NEGOTIABLE.

You can find more information about this form and how to fill it out at www.nvar.org

Attention Current Homeowners!

Do you currently own a home in Las Vegas? Do you feel like you are paying too much in Property Taxes due to the current economic situation we find ourselves in? If you answered yes to one, or both of these questions, I have great news! You can file an appeal for the city to review your Property taxes which can save you hundreds if not thousands of dollars! Who couldn't use an extra thousand dollars these days, right?

The cut off date for the Property Tax Appeal is January 17th. That's next MONDAY!!

For a free tax assessment, enter in your home address at http://www.valueappeal.com

You can do it yourself, which Michele Schafe assistant director of the Clark County Assessor's Office, suggests. Or you can hire a company like Value Appeal that will do it for you. Their cost is $99. More information about their services can be found at the website above.

"Property owners who believe that the market value of their property is less than the taxable value listed or believe that they were assessed differently than comparable property may contact the Assessor's Office Appraisal Division at 455-4997 for an explanation of the values. If not satisfied after speaking with the Assessor's Office, a property owner may file a petition with the County Board of Equalization for a review of the values. The petition must be filed on or before January 18, 2011. The petition forms are available in the County Assessor's Office, located at 500 S. Grand Central Parkway, second floor. The petitions will be scheduled for presentation to the County Board of Equalization during its meetings, which will be held in January and February, 2011. If further appeal is desired, a petition may be filed with the State Board of Equalization no later than March 10, 2011." copied directly from the Clark County assessor's page.

While you are at it contact your insurance rep and ask that they reduce your insurance too!

Get your Credit Repaired in as little as 90 days!

Today's topic, I'd like to discuss is credit repair. Collectively, there has been at least one time in our lives where we've missed a few payments, had a credit card cancelled or maybe even filed for bankruptcy. Nowadays these occurrences have increased and now people are finding their credit score lowered due to a short sale or foreclosure. These credit "hits" can keep you from buying a new home or from even renting a house. Don't worry! As your realtor, it isn't just my sole intention to help you buy or sell your home. I want to make sure you are taken care of long after your home is sold. I'm sure you're probably asking yourself, "how can you, a real estate agent, help me repair my credit?" Well, my answer is easy, with a credit restoration company of course!

Coldwell Banker Premier has teamed up with Certo Financial Restoration to help you get back on track and on to your new home in as little as 90 days. When you sign up with Certo Financial you'll be put in touch with a restoration associate who will provide you ways to get back on track. They'll identify inaccuracies, educate you on how credit reports work, and solutions on how to improve your score. You'll have access to your credit reports 24/7, receive a couple's discount so you can repair your credit together, and so much more!

If your thinking about foreclosing or short selling your property and want all the facts on how they will affect your credit, or if you would like more information about Certo Financial Restoration or my services. Feel free to contact me! Hope you all have a terrific day!

Happy New Year!

With the passing of each year, people are excited and energized by the promise of the New Year. It may feel hard to have the same positive outlook when it comes to real estate and the economy. But, don't let Mr. Negativity bring you down. There are positive signs of recovery brewing already! News stations across the country are reporting the lowest unemployment rate in 19 months. Sales during the holiday season, especially online, were higher than predicted. And in real estate, specifically, declining home prices look to have leveled off, interests rates still remain at record lows and New Home builders are buying up permits! In other words, it is a great time to buy! With over 16,000 homes currently for sale, there is no other time than the present to purchase your new home, or invest- because there's no way to go from here, but UP!