LAS VEGAS REALTY SECRETS

SO YOU ARE THINKING FORECLOSURE?

2008-07-27T21:30:00.000-07:00

Special to the Las Vegas Review-Journal

Two Alternatives to Foreclosure
By EMILY GREENJuly 27, 2008
The housing legislation that is close to becoming law may help as many as 500,000 cash-strapped homeowners avoid foreclosure, by assisting them in refinancing into more-affordable government-backed mortgages.
COUNSELING RESOURCES FOR STRUGGLING HOMEOWNERS

• Neighborhood Assistance Corp. of America naca.com 1-888-302-6222
• ACORN acorn.org 1-866-672-2676
• Homeownership Preservation Foundation 995hope.org 1-888-995-4673
• HomeFree-USA homefreeusa.org 1-866-696-2329
But since many struggling borrowers may not qualify, people facing foreclosure should also familiarize themselves with two other options: "short sales" and "deed in lieu of foreclosure" transactions.
Neither option will keep you from losing your house or avoid severe damage to your credit score. Still, they may be less painful in some ways than foreclosure, the legal process in which the bank repossesses a homeowner's property because of failure to meet the terms of the mortgage.
In a short sale, the borrower sells the house at a fair market value that is less than the amount owed on the mortgage, and the lender usually agrees to forgive the remainder of the debt.
In the other option, the borrower hands over the property to the lender with the lender's consent "in lieu of" waiting for foreclosure. The obligation falls on the lender to sell the house; as in a short sale, the lender typically agrees to forgive the amount by which the mortgage balance exceeds the house's current value.
Put Debt Behind You
A key advantage of both strategies is that most individuals walk away from their house freed of their mortgage debt, a psychological and legal relief, says Vicki Vidal, an associate vice president at the Mortgage Bankers Association.
In contrast, in foreclosure proceedings, lenders can theoretically pursue the differential owed to them, depending on state law. The great majority of lenders don't pursue this debt, but it has occurred, particularly in cases where the borrower vandalized the property upon departure.
A second benefit of short sales and deeds in lieu of foreclosure is that borrowers will generally face a shorter waiting period before they can obtain another mortgage.
Many lenders primarily make loans that they can sell to big mortgage players Fannie Mae and Freddie Mac. Starting Aug. 1, Fannie Mae generally will not buy loans made to borrowers involved in a short sale in the past two years. That's shorter than the four-year wait time if you have a deed in lieu of foreclosure on your record, and the five-year wait time if you have a foreclosure on record. (The current wait time is four years for a foreclosure or a deed in lieu of foreclosure; there is no existing policy for borrowers with a short sale.)
Freddie Mac generally won't guarantee loans made to borrowers who have had a foreclosure in the past four years, says Freddie Mac spokesman Brad German. (If the foreclosure was due to circumstances beyond the borrower's control, such as a medical emergency, then Freddie Mac will guarantee the loan in two years' time). The company considers short sales and deeds in lieu of foreclosure a significant negative but not an "automatic no," says Mr. German.
A Blow to Credit Scores
What short sales and deeds in lieu of foreclosure don't do is minimize the impact on a borrower's credit score. All three proceedings have roughly the same negative impact on an individual's credit score, says Craig Watts, spokesman for Fair Isaac Corp., which created the widely used FICO score.
Mr. Watts says that to date little analysis has been done distinguishing, for instance, the credit risk of individuals who completed a short sale versus those involved in a foreclosure. For that reason, "the model ends up treating them [a short sale, a deed in lieu of foreclosure, and a foreclosure] all the same."
If homeowners are interested in pursuing a short sale, they should open discussions with their lender or loan servicer before attempting to sell their house.
For both short sales and deeds in lieu of foreclosure, borrowers will have to present a "hardship letter" to the lender or servicer detailing why they are unable to make their mortgage payments.
Lenders have shown increasing willingness to negotiate short sales and deeds in lieu of foreclosure because of the losses they frequently incur in foreclosures.
Short sales are considered preferable because they save lenders the hassle of selling the house. But a deed in lieu of foreclosure also has its advantages to lenders versus foreclosure: "The earlier they get the home, the better the condition the property is in," says Ms. Vidal of the Mortgage Bankers Association.
Still, for both short sales and deeds in lieu of foreclosure, the process of negotiating with lenders can quickly become complicated. If a borrower took out second and third mortgages, he or she may need to negotiate with multiple firms.
Whether attempting a short sale or a deed in lieu of foreclosure, borrowers should take a "proactive approach," says John Snyder, homeowner specialist with the nonprofit NeighborWorks America.
He recommends that borrowers who foresee problems making their mortgage payments contact a nonprofit organization to help them negotiate with their lending institution.
Write to Emily Green at emily.green@wsj.com
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BEST TIME TO BUY IN 30 YEARS

2008-07-27T21:14:00.000-07:00

Much has been said about Las Vegas being on the top, or second from the top, or perhaps ranked third in foreclosures. The fact is homes are selling and our Las Vegas market is the best it has been for buyers in 30 years according to many veteran real estate agents. I agree. When 67% of sold homes are sold by REOs and another 21% are short sale solds, that is an incredible 88% of the Las Vegas Market! I have been in the trenches working on numerous MLS work groups, special projects, and non excite me more than seeing the opportunity first time buyers, move-up buyers, and investors have right now.

2004 median prices AGAIN & never again

2008-05-04T12:07:00.000-07:00

Now that the media has caused a panic that then caused a stagnant real estate market, the Las Vegas Review-Journal has reported that in the years ahead many of you will look back on spring of 2008 and say "remember the prices of 2008?"

Note that the Greater Las Vegas Association of REALTORS is showing the most popular prices of homes sold in the range of $250,ooo and $299,000.

2008-05-01T21:40:00.000-07:00

When the Las Vegas Review Journal Editorial claimed that we are now again at 2004 prices, I knew it was time to put the word out that now is the time to buy in Las Vegas. The editorial even stated that we surely will see the day when folks will say: "Remember the good old days and the prices of April and May of 2008?"

A look at the sales charts shows that we clearly are leading the way, again, in the economy and the real estate market.

WHAT? No mirrors!?

2008-04-22T22:05:00.000-07:00

According to AUTOMOTIVE NEWS automobile manufacturers in 2010 will start using rear view video cameras in place of the traditional rear view mirrors because they cause drag and ar easily damaged. Does your auto service provider keep up with the fast paced technology? 1-2-3 Automotive, LLC does.

OHFEO PRESS RELEASE

2008-04-22T21:33:00.000-07:00

Well, it has been said. The only way to know when we have hit the bottom of the real estate market is when we notice that we have started a recovery. It is here. The Office of Housing Federal Enterprise Oversight has issued a press release announcing that the median price of a home has increased .6% nationally for the month starting at the end of January and ending at the end of February. I 'll say it again. Las Vegas is leading the recovery at more than 3%

Free tips: increase gas mileage 2,4,10, 15 miles per gallon. It could easily keep $1,500 or more in your pocket in a year.

2008-04-20T20:26:00.000-07:00

Stay within posted speed limits. The faster you drive, the more fuel you use.
Use overdrive gears. Overdrive gears improve the fuel economy of your car during highway driving.
Use cruise control. Using cruise control on highway trips can help you maintain a constant speed and, in most cases, reduce your fuel consumption.
Anticipate driving situations. If you anticipate traffic conditions and don't tailgate, you can avoid unnecessary braking and acceleration, and improve your fuel economy by 5 to 10 percent.
Avoid unnecessary idling. Turn off the engine if you anticipate a lengthy wait. No matter how efficient your car is, unnecessary idling wastes fuel, costs you money and pollutes the air.
Combine errands. Several short trips taken from a cold start can use twice as much fuel as one trip covering the same distance when the engine is warm.
Remove excess weight from the trunk. Avoid carrying unneeded items, especially heavy ones. An extra 100 pounds in the trunk reduces a typical car's fuel economy by one to two percent.
Keep your engine tuned. Studies have shown that a poorly tuned engine can increase fuel consumption by as much as 10 to 20 percent depending on a car's condition.
Change your oil. Clean oil reduces wear caused by friction between moving parts and removes harmful substances from the engine.
Check and replace air filters regularly. Your car's air filter keeps impurities in the air from damaging internal engine components. Clogged filters can cause up to a 10% increase in fuel consumption.
Buy only the octane level gas you need. Remember, the higher the octane, the higher the price. Check your owner's manual to determine the right octane level for your car. Or, call1-2-3 Automotive, LLC.
Own a fuel efficient vehicle. The difference between a car that gets 20 MPG and one that gets 30 MPG amounts to $1,500 over 5 years.
Have your oxygen sensor checked. Replacing a worn or defective oxygen sensor can increase mileage by 2 to 4 miles per gallon.
Service your transmission a minimum of times to maintain your factory warranty. An independent service facility, such as 1-2-3 Automotive, will provide the necessary service at a fraction of dealer cost. A ‘sick’ transmission is like walking on a treadmill; you just do not get there as efficiently.
Out-of-tune engine and fuel injectors: A properly tuned engine improves fuel economy by about 4 percent, according to the EPA.
Clogged air filters: An air filter full of dirt makes the engine work harder and can let impurities damage the engine. Replacing a plugged filter improves fuel economy by up to 10 percent, according to the EPA.
Keep tires properly inflated: Under-inflated tires can decrease mileage by 3 percent, or 0.4 percent for every 1 psi drop in pressure, and they also reduce tire life, which means more worn tires to dispose of. Plus, driving on improperly inflated tires can be dangerous.
Be sure your wheels are aligned and the tires are balanced. Vehicles with wheels out of alignment and tires out of balance can cause fuel consumption to increase, and, the cost of tire replacement will skyrocket the total cost of poor maintenance.

Las Vegas leads recovery

2008-04-20T20:10:00.000-07:00

LAS VEGAS POISED TO LEAD NATION"S ECONOMIC RECOVERY
Las Vegas once again is postured to lead the nation in economic recovery. Last week the statistics looked very dismal for Miami while here in Las Vegas the median price of a home climbed in some zip codes for the first time is months. Miami saw a .2% increase but Las Vegas saw a 3.2% increase. Moreover, we are experiencing multiple offers on some listings. Nay sayers ignore the reality of Las Vegas being a world destination and when the dollar weakens, as it has, vacationers and travelors come to Las
Vegas. That attracts savvy real estate investors and that is what is happening as you read this.

Dealerships are closing their doors all over the nation as engineering dwindles the need for automotive repairs. Preventive maintenance and regularly scheduled services are the market for automotive facilities.

Humane, Human or Humor?

2008-04-05T10:40:00.000-07:00

Strange Bedfellows in Las Vegas.....

The Tropicana Hotel Casino posted a memo on their employee's bulletin board: "$25.00 bounty for each and every living bedbug captured. " according to the Las Vegas Review Journal. What happens here stays here. Guests are encouraged to contact the front desk at night should they find any of these strangers in bed with them.

THE ELLUSIVE BOTTOM

Buyers were waiting it out for the 'bottom' in the Las Vegas Real Estate market. Recently, listing agents and buyer agents have reported multiple offers on some homes that are for sale. Even new homes are seeing a recovery. BLOOMBERG NEWS printed that stocks hit a six month high following lower prices and the lowest interest rates in a few years. One could say that we do not know where the bottom is until we sense a recovery. Even the automobile service industry and preventive maintenance facilities (competing with dealers) are doing more warranty service on newer vehicles. Once again Las Vegas leads a recovery in the national economy. The LAS VEGAS STRIP is also seeing increased activity.