BluefoxOutlook

Las Vegas real estate report mixed for November

Thu, 10 Dec 2009 15:17:58 -0600

Southern Nevada - with communities like Mountains Edge, Rhodes Ranch, Summerlin, Henderson, North Las Vegas, Anthem and Green Valley - housing market has now assumed kind of a wait and see attitude. Las Vegas mortgage borrowers are still enjoying low interest rates that keep them at least tuned in while waiting for the right property to come along. Considering that normally the winter months are a little slower the vital statistics weren't too bad. Let's get right to them, then.

There were 3,117 existing single-family home sales in November, amounting to an almost 12% drop from October, reports GLVAR, or Greater Las Vegas Association of Realtors. The pace is obviously slowing down some. But if compared to November of 2008 the closings are up some 43%, a significant difference. Now, 61% of the sales were bank REOs, a clear signal as to how disjointed the Southern Nevada's real estate market still is. 41% of them were cash purchases, indicating that investors are heavily involved in shaping at least the near-term housing picture here.

The news are better for the Las Vegas single-family home prices, as the median inched up marginally to $140,000, a 0.6% improvement. It's not that much but the main thing is that they seem to be settling down now. On the other hand, they still are about 25% lower from a year ago, so there is quite a bit of catching up to do.

The inventory of homes for sale is down 151 units, to 20,847. Small decrease, but one anyway. From November of 2008 it's an over 8% drop, a positive development in small steps. As has been the case for months already this number remains steadily high and it'll predictably do so for several more months with more foreclosure properties entering the marketplace.

Las Vegas real estate market continues to be dominated by first-time home buyers who are often taking advantage of the tax credit program and investors who come in to fatten their portfolios with great deals. Although the heart of the winter is here and typically signals a slower period the recently expanded tax credit plan for move-up buyers could spur some extra activity. Southern Nevada housing can use all the help it can get.

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Provided by:

Esko Kiuru
Mortgage Consultant, Father, Golfer, Skier, Beer Aficionado

www.eskokiuru.com - complete mortgage platform
www.BluefoxToday.com - syndicated mortgage and real estate blog

esko@eskokiuru.com
My cell: 702-499-1006

Home loans in Southern Nevada - including Las Vegas, Summerlin, Henderson, Green Valley, Mountains Edge, North Las Vegas, Southern Highlands, Anthem, Boulder City, Pahrump and Mesquite - and all of Nevada.

Quarterly Homeowner Confidence Report Shows Levels Vary Across The Country

Tue, 08 Dec 2009 16:56:40 -0600

Here is a good report on homeowner confidence levels regarding real estate, provided by Zillow. Take a look.

Via Sara Bonert {Real Estate Internet Marketing} (Zillow):

Each quarter Zillow tracks Homeowner Confidence by conducting a survey, along with Harris Interactive, to gage homeowner sentiment about the value of their home. When we started 6 quarters ago, perception and reality were quite far apart. But each quarter homeowners have come closer and closer to realizing that values have dropped nationwide, and the spread has narrowed.

However in Q3 of 2009, perception and real estate markets were literally all over the map. People in the Northeast were overly cynical about home values, while those on the West coast were overly optimistic.

From a national standpoint, when asked about their own home's value over the past year:

25% think their home's value has increased

26% think their home's value has stayed the same

49% think their home's value has decreased

In reality, 72 % of U.S. homes lost value over the past year, and 22% of homes increased in value. That's fewer homes declining versus Q2(83%), and a smaller Misperception Index of 10 (vs. 13 in Q2 and 17 in Q3 2008). A Misperception Index of zero would mean homeowners' perceptions were in line with actual values.

Here's a breakdown of homeowner perception vs. reality nationwide:

So what does the general public think about the future of their real estate market? The vast majority of homeowners - 84% - believes their home has reached a bottom and will not decline any further. Specifically:

41% think their home's value will increase in the next six months

43% think their home's value will stay the same

17% of homeowners think their home's value will decrease

There is a lot going on with housing right now, both organically in-market and with government stimulus, so it is hard to predict with any certainty what the future holds.

As Zillow's Amy Bohutinsky, Zillow VP of Communications put it - "Overly optimistic homeowners? Probably. Confused homeowners? Absolutely. And I don't blame them one bit." This is why it is so important people have professional representation to help interpret what is happening locally and maybe, to certain degree, even help look forward.

Curious about home value trends in your neighborhood, please visit Zillow's new and improve Local Info tab to see dynamic home value charts and neighborhood make up stats.
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_______________________________________________________________________________

Provided by:

Esko Kiuru
Mortgage Consultant, Father, Golfer, Skier, Beer Aficionado

www.eskokiuru.com - complete mortgage platform
www.BluefoxToday.com - syndicated mortgage and real estate blog

esko@eskokiuru.com
My cell: 702-499-1006

Homeowners face another foreclosure hurdle - Las Vegas mortgage receivers potentially on the hook

Mon, 07 Dec 2009 22:30:00 -0600

Second mortgages are now starting to make their way into the ever-shifting foreclosure battlefield. As the housing market fell famously to pieces and took real estate values down with it, pushing scores of homeowners underwater, first mortgage holders were left holding the bag. That is if they had the only loan on the property. During the bubble that just visited the housing market home buyers often used a second mortgage to keep the down payment to a minimum, or nothing at all, and avoid paying PMI, or private mortgage insurance. 100% financing became quite popular those days.

When a foreclosure hits today, the second mortgage holder, or a debt collector who has purchased the second lien, often gets nothing at all because of the merciless erosion of home prices. The first may get something close to what the actual balance is in a short sale or as a REO sale. In the most affected areas during this downturn like Las Vegas properties frequently are way upside down and the first position gets pinched quite a bit, too.

Home loan providers and debt collectors who own second mortgages are beginning to hone their skills to grab something when a homeowner is in danger of a default. One of the new tactics they've come up with is get a judgment from a court to freeze the homeowner's bank account, or allow them to clean out the account altogether to satisfy their claims. The other one is to get a court to approve garnishment of paychecks.

This of course weakens a homeowner's position to seek loan modification. He is already struggling to make mortgage payments as it is and all of a sudden the paycheck is cut, or bank account frozen, that likely will negate a possible solution where he can keep his house. Moreover, now the first lien holder finds itself in a bind, too. The chance it had to salvage something out of this through modification is greatly diminished. It may now actually seek legal action of its own against the second mortgage holder, who essentially appears to be carrying out an end-run over the established foreclosure process.

Las Vegas valley - featuring communities like Henderson, Mountains Edge, Silverstone Ranch, Summerlin, Green Valley, Rhodes Ranch and Charleston Heights - homeowners ought to be aware of this possibility. There are scores of homes in here with second mortgages that are underwater and many could easily get snagged in this type of a game.

The property owner who is already in the weeds knee deep with mortgage payments could now find himself in the middle of a brewing lender duel. What a mess.

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Provided by:

Esko Kiuru
Mortgage Consultant, Father, Golfer, Skier, Beer Aficionado

www.eskokiuru.com - complete mortgage platform
www.BluefoxToday.com - syndicated mortgage and real estate blog

esko@eskokiuru.com
My cell: 702-499-1006

Southern Highlands, Las Vegas, mortgage borrowers could get a break via FDIC proposal

Sat, 05 Dec 2009 22:18:21 -0600

The agonizing mortgage and housing downturn has brought FDIC to the forefront of efforts to keep the financial system from being sucked into a dark, unpleasant place. The Federal Deposit Insurance Corp. takes over failed banks and then allows other healthier financial institutions to acquire the wrecks. So far this year it has shuttered 124 banks, absorbing losses in the billions.

Mortgage portfolios have played a large role in the total assets FDIC then offers up for acquisition. Typically when a bank purchases assets it also signs a loss-sharing contract with FDIC. In this current recession they generally have agreed to a forbearance clause and/or lowering the interest rate on the underlying home loans. Now FDIC, seeing its insurance fund shrinking perilously, is seeking to shift more of the loss-sharing to the acquiring banks.

To do that it plans on requiring banks to lower the principal on the mortgages they acquire. This particular course of action has been debated for months now, only to draw lukewarm acceptance from the financial sector. Washington has also floated the idea of allowing the courts to slash principals closer to market, but it has been quietly shoved onto a shelf in some remote closet on Capitol Hill, thanks to pressure from Wall Street.

Banks see bright red when the topic of mortgage principal reduction is brought up for conversation. They have been doing everything thus far in their dog-eared playbooks to avoid doing so. Obviously they have been calling on any available higher authority willing to listen to bless the real estate market for a quick recovery that would then prop up their damaged balance sheets dragged way down with almost worthless mortgage paper. It hasn't happened, though, and seems to be at least a few more moons away.

Cutback on mortgage principal would undoubtedly slow down the still-active foreclosure tsunami and thus help FDIC and even the banks. Homeowners would have a much better chance of meeting their payment obligations, likely keep them in their houses and largely arrest the loss of property values. It would also give them a psychological boost in that they would then be living in a place that is only marginally underwater, if at all.

Southern Nevada communities - Summerlin, North Las Vegas, Henderson, Mountains Edge, Anthem, Mesquite, Rhodes Ranch and Silverstone Ranch - would certainly gain from this adjustment, if enacted. Upside down homes saturate the landscape here, as it does in many other areas throughout the country. Banks may still throw tantrums over it, but that frankly appears to be the only sensible way out of this prolonged mess.

Photo by greenbroke.

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Provided by:

Esko Kiuru
Mortgage Consultant, Father, Golfer, Skier, Beer Aficionado

www.eskokiuru.com - complete mortgage platform
www.BluefoxToday.com - syndicated mortgage and real estate blog

esko@eskokiuru.com
My cell: 702-499-1006

Las Vegas real estate appeals to investors

Thu, 03 Dec 2009 23:46:32 -0600

Southern Nevada - including communities like Anthem, Henderson, North Las Vegas, Mountains Edge, Summerlin, Southern Highlands, Green Valley and Rhodes Ranch - housing market has become one of the favorite playing grounds for scores of investors. And for a good reason. Las Vegas property values have nose-dived to roughly the levels seen here about ten years ago, a time when they were deservedly called affordable. Now, as was the case then, a nice single-family, 3-bedroom house in a solid neighborhood can be bought for under $150,000.

This Las Vegas housing drift has definitely drawn the attention of real estate investors from all over.So much so that they purchased a serious 41.2% of homes for sale here in October, as was reported by MDA DataQuick, a San Diego real estate information boutique. They generally use cash to do that, giving them an advantage over those who need mortgage financing for the deal. Who can argue against a quick close? In essence they mostly are deep-pocketed entities with a well-designed plan. They also realize that flipping is a thing of the past, so the properties are usually rented out for the long-term.

And that's where some Southern Nevada homeowners can get a bit emotional. This applies especially to the newer Las Vegas developments where mortgage foreclosures tend to be higher and where prices have been subjected to a thorough flogging. Existing homeowners see houses around them going for half the price they paid for theirs a few years ago. That can make anyone call Alan Greenspan bad names. To make matters worse many of these homes are now being turned into rentals and that can be considered undesirable for a neighborhood. One or two of them here and there isn't a problem, but if 20 or 30% of the area is rentals, yes, it can change the dynamic to a point where the values will further deteriorate.

On the brighter side, real estate investor activity will remove from the inventory countless vacant homes that mortgage lenders tend to let go into disrepair after foreclosing on them. Banks are known by most accounts to be rather lousy property managers. Therefore, it often is better to have someone occupying a home than no one at all.

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Provided by:

Esko Kiuru
Mortgage Consultant, Father, Golfer, Skier, Beer Aficionado

www.eskokiuru.com - complete mortgage platform
www.BluefoxToday.com - syndicated mortgage and real estate blog

esko@eskokiuru.com
My cell: 702-499-1006

THE GOVERNMENT'S SOLUTION TO THE MORTGAGE MESS?? "Name and Shame"?

Wed, 02 Dec 2009 23:09:32 -0600

Take a look at what Lenn has to say about Washington's latest effort to fix the mortgage jam.

Via Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate:

Name and Shame Concept - IMHO,? . . . Since I was asked. . . .

Christine Bohn requested an opinion re her blog post, Name and Shame Concept - IMHO. Never one to avoid commenting, I'm happy to oblige. The post is worthy of a ReBlog, but, no ReBlog button. So. . . .

                                                    * * * * Opinion * * * *

THE GOVERNMENT'S SOLUTION TO THE MORTGAGE MESS?? "Name and Shame".

What utter nonsense! ! ! How completely patronizing of every home owner who has lost $Hundreds of Thousands of Dollars$ in lost home equity! ! !

One can no more shame a bank than one can embarrass a politician.

This is no more than Pablum for the masses.

I believe that the intention of this so called Name and Shame solution is to give cover to the politicians who know that they can't do anything about the collapse of the housing industry because they already took about $2.5Trillion out of the pockets of the American tax payers to transfer wealth to the banks and reimburse them for the massive losses they suffered when they created the mortgage mess to secure Billions in profits for themselves and their partners in crime around the world.

Reminds me of the "Let them eat cake" solution when the masses had no bread.

The government is so completely contemptuous of the American Home Owner that they believe that a clever cliche, "Name and Shame" publicity campaign will actually appease the American home owners.

Some of us are grown-ups and will see this pathetic campaign for what it is, substituting rhetoric for policy.



                                       "We can relax now. I told them what they want to hear."

Courtesy, Lenn Harley, Broker, Homefinders.com, struggling with a dial-up connection waiting for Verizon to fix DSL. Still waiting. . . Still waiting.

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Provided by:

Esko Kiuru
Mortgage Consultant, Father, Golfer, Skier, Beer Aficionado

www.eskokiuru.com - complete mortgage platform
www.BluefoxToday.com - syndicated mortgage and real estate blog

esko@eskokiuru.com
My cell: 702-499-1006

FHA seeks operational change - Las Vegas mortgage applicants could benefit

Tue, 01 Dec 2009 16:43:47 -0600

The current housing market turmoil has delivered the conventional home loan sector a hard uppercut on the chin, sending it reeling, which left a huge void in its wake. This gave FHA, rather dormant home loan insurer in recent years, an opening to regain some its past luster and it has steadily gained market share ever since. Its low down payment requirement and more lenient underwriting criteria have allowed many of today's mortgage borrowers achieve home ownership. Many well-meaning industry observers have also dubbed FHA the new subprime lender.

FHA has run into trouble of late, though, like who hasn't, due to growing defaults on mortgages it insures. That has prompted it to tighten the guidelines under which it operates. Now it is planning to make more adjustments in a further attempt to lower risk and shore up its leaky insurance fund.

The oven-fresh proposal calls for increased net worth requirement for approved mortgage lenders. The minimum would be $1 million in the first year and would go to $2.5 million by the third year. The current threshold is $250,000, so the hike would be substantial and would predictably lead to many of them giving up their status. It would then consolidate FHA-insured lending to a fewer home loan companies, on one hand, but they would also be stronger in dealing with adverse situations, on the other.

Another significant change under consideration is that third-party mortgage brokers would no longer need to have direct FHA approval. The FHA-approved home loan firms would be responsible and liable for the loan files they get from mortgage brokers. In essence, they would then be approved by these FHA-endorsed lenders, creating a similar arrangement that currently exists with Fannie Mae and Freddie Mac. That actually makes sense, streamlining the major government-affiliated mortgage programs.

Las Vegas valley - featuring Summerlin, Henderson, Mountains Edge, Anthem, Southern Highlands, Aliante and Rhodes Ranch - mortgage borrowers would probably end up having more FHA brokers to choose from, should these changes be enacted. As it seems, they would be relieved of the present net worth requirement and just get okayed by the various large FHA-approved mortgage lenders. More brokers would lead to more competition and the consumers ought to be clinking beer glasses over that possibility.

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Provided by:

Esko Kiuru
Mortgage Consultant, Father, Golfer, Skier, Beer Aficionado

www.eskokiuru.com - complete mortgage platform
www.BluefoxToday.com - syndicated mortgage and real estate blog

esko@eskokiuru.com
My cell: 702-499-1006

MBS, or mortgage-backed securities, rating agencies under renewed squeeze

Sat, 28 Nov 2009 13:35:02 -0600

The unprecedented real estate bubble the nation just experienced was partly created by the credit rating shops that were tasked to value mortgage-backed securities, or MBS. The three large agencies doing that are Fitch Ratings, Moody's Investors Service and Standard & Poor's. The ratings the three arrived at were then attached to MBS issued by Wall Street firms and subsequently offered to investors who were seeking to invest money based on their own risk preferences. Obviously what the large investors world over were seeing made them confident that MBS were sound and worth acquiring, so they bought boatloads of them, stoking the fire under the housing bubble even more.

Las Vegas mortgage recipients, like those in the other seriously mauled areas of Arizona, California and Florida, were caught up in this frenzy and are now paying dearly for it.

Ever since the home loan and real estate market implosion there has been talk about how these ratings actually were sugar-coated and inaccurate, giving investors false impressions on their true value. Naturally the three agencies under scrutiny are adamantly defending their business practices.

Ohio attorney general has now filed a lawsuit against these three agencies on behalf of five Ohio public employee pension and retirement funds, claiming that the MBS ratings were inflated, often giving triple-A scores to mortgage-backed securities that in fact were rather risky. Moreover, the issuers of these bonds themselves, the lovable Wall Street crowd, were paying hefty fees for the ratings, creating an apparent conflict of interest issue. Conceivably the more fees a Wall Street issuer paid, the better an MBS rating would be.

The lawsuit seems to have decent merit now that the housing market has largely tanked and those MBS have lost most of their value, showing that in fact they were not quite triple-A vehicles but rather the high-risk variety. The Ohio attorney general has already filed seven other lawsuits against financial and investment companies since the economy turned sour and has collected thus far $2 billion in damages. This then isn't his first rodeo, so evidently he's onto something everybody should be paying attention to.

It just makes people wonder why Washington mortgage industry regulators are still sitting on the sidelines. This appears to be what they should be keeping an eye on and taking corrective action when needed. Does Wall Street have too much influence there? Well, at least some of the states have taken the initiative seeking to make the marketplace more responsible for its greedy and deceptive actions.

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Provided by:

Esko Kiuru
Mortgage Consultant, Father, Golfer, Skier, Beer Aficionado

www.eskokiuru.com - complete mortgage platform
www.BluefoxToday.com - syndicated mortgage and real estate blog

esko@eskokiuru.com
My cell: 702-499-1006

Las Vegas mortgage borrowers in distress to gain from Operation Stolen Hope

Fri, 27 Nov 2009 13:26:44 -0600

When the Southern Nevada - including Southern Highlands, Summerlin, Henderson, North Las Vegas, Anthem, Mountains Edge and Green Valley - housing market tripped into a free fall it was a foregone conclusion on many lips that scam artists would soon surface to try take advantage of the situation. And have they ever. What the local media has reported on the magnitude of the issue is undoubtedly only a tip of the iceberg. This, of course, isn't only a Las Vegas problem either, it covers the whole nation.

The scam artists generally employ a few basic practices that have all too often worked on unsuspecting homeowners facing mortgage payment challenges. One of them is the promise that the shady operator guarantees to put a halt to a foreclosure or to modify a home loan. Another is where he requests a large advance fee. They also like to ask for the borrower to stop paying the mortgage lender and send the payments to them instead. All of these are red flag events for homeowners thinking about foreclosure rescue or home loan modification.

In addition, some operators will brag about their excellent track record and pledge to make refunds in case they fail to deliver the goods. And then there are those who say they are affiliated with the government or the mortgage company in question, when they are not. It's important to check on the legitimacy of any foreclosure rescue shop or home loan modifier before engaging them.

Because mortgage-related scams just continue gaining speed the FTC, or Federal Trade Commission, has launched a new program to attempt to slow things down. It's called Operation Stolen Hope. It was recently announced in a press conference held in Las Vegas, one of the cities most affected by the housing collapse where many hustlers have set up shop to ply their slimy trade. FTC is actually joining forces with at least 25 state attorneys general to thwart these deceptive, fraudulent and unfair business practices the scammers like to pull off.

Operation Stolen Hope must be the result of ever increasing amount of mortgage borrower complaints. What FTC has done so far obviously hasn't been enough. Sometimes people wonder why regulators have to receive thousands of complaints before they start taking their mandate seriously. Why not do their job right from the get-go so there won't be that many disgruntled mortgage borrowers to make those breathless phone calls? Anyway, if FTC has the resources, organization and will it can make a big difference on the struggling homeowners' behalf.

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Provided by:

Esko Kiuru
Mortgage Consultant, Father, Golfer, Skier, Beer Aficionado

www.eskokiuru.com - complete mortgage platform
www.BluefoxToday.com - syndicated mortgage and real estate blog

esko@eskokiuru.com
My cell: 702-499-1006

10 Don’ts When Buying Foreclosures

Tue, 24 Nov 2009 00:06:00 -0600

Very strong checklist from John the Housing Guru for anyone planning on buying a foreclosure here in Las Vegas NV. Take a look.

Via John Mulkey, Housing Guru (TheHousingGuru.com):

While there are sometimes bargains to be found in the purchase of foreclosures, there are also serious pitfalls. Foreclosures are not for the inexperienced. Use the following to help guide you through the process.

1. Don’t buy a foreclosure in the wrong area. Even if the home is a great deal, if you are planning to live there, you’ll probably regret your decision. Price is never the only factor. And even if you are an investor, if the home isn’t in the area you wanted, it may be better to look for another.

2. Don’t assume that a foreclosure is a great buy. Do your homework. Recruit a Realtor® to guide you.

3. Don’t get caught up in the excitement of a bidding war. Whether at auction or through negotiation, bidding wars frequently result in someone paying too much. Have a pre-determined maximum price and don’t go beyond it. If the bidding remains below your maximum, however, use the tactics in Winning a Bidding War.

4. Don’t buy a home without an inspection. Even if a lender is selling the home “as-is,” your offer to purchase should include an inspection clause with a time limit for your acceptance. With an inspection clause, you’ll be protected and not bound to close if you discover serious problems. Your clause should include an inspection for structure, pests, radon, mold, drainage, and anything else that may be appropriate for the home you’re considering.

5. Don’t buy a property without a title search and without purchasing “owners’ title.” Foreclosures may have problems that failed to be uncovered during the foreclosure process. Protect your investment by purchasing coverage.

6. Don’t expect any type of warranty. You’re buying the home “as is” and will be responsible for making repairs.

7. Don’t expect the bank to make allowances for your personal situation. Banks have been overwhelmed with foreclosures and have neither the time nor the inclination to make exceptions.

8. Don’t try to close a deal without an attorney. While you may be using a Realtor® and “trust” the seller, you need an attorney’s guidance to avoid the potential for certain risks and “super liens” that may survive the foreclosure.

9. Don’t attend a foreclosure auction unless you are totally prepared to buy. That means you must be ready to meet the financing requirements of the auction (usually cash or a letter of credit), that you have full knowledge of the property and the costs of making repairs, and that you are fully ready to purchase. Auctions are attended by professionals (often referred to as vultures”) who both know the true value of the property and the cost of repairs. But they are sometimes attended by cash-rich novices who bid up the price far beyond a home’s reasonable value.

10. Don’t consider a foreclosure until you check out the limitations and requirements in your particular state or area. There are considerable differences between states, and just because you’ve heard of great opportunities in one doesn’t mean the same exists in another.

The Housing Guru: The one source for all your housing questions

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Provided by:

Esko Kiuru
Mortgage Consultant, Father, Golfer, Skier, Beer Aficionado

www.eskokiuru.com - complete mortgage platform
www.BluefoxToday.com - syndicated mortgage and real estate blog

esko@eskokiuru.com
My cell: 702-499-1006

Las Vegas luxury condo market warming up for new day - mortgage money still scarce

Sun, 22 Nov 2009 17:38:07 -0600

Southern Nevada - with communities of Mountains Edge, Summerlin, Henderson, Southern Highlands, North Las Vegas, Anthem and Green Valley - condominium segment bubbled up a little later than the single-family side, but its slide became equally devastating once it hit the slope down. Mortgage financing dried suddenly up, oversupply was horrendous and the mauled global economy forced many would-be buyers to the sidelines. The usual menu that real estate disasters are made of.

Now, though, things are cautiously looking up for the Las Vegas high-rise condo market. Sales in the third quarter climbed a decent 7%, as was reported by SalesTraq, a Las Vegas research boutique. Looking at it another way means that now 45% of all luxury condominiums in town are effectively sold, up from 38% at the end of the second quarter. True, the increase is well received and offers optimism down the road, yet it still leaves a monstrous block of vacant units out there, 55% in all. Undoubtedly that is a lot of inventory seeking qualified and willing buyers.

Las Vegas mortgage lenders continue to be very selective toward high-rise condominium projects on and off the Strip. Among the key issues they are wary about are unacceptable owner-investor ratios, unstable values and all sorts of legal problems.

The condo-hotel concept that also made a grand entrance to the Southern Nevada real estate market this decade and subsequently collapsed has no mortgage takers at all at the moment. It really is more like an investment vehicle that got off to a great start when the global economy was humming along and the Las Vegas market full of promise. And then the rosy environment changed in rapid order and wrecked everything. It's predictable that it will recover last from all the housing sectors in Southern Nevada.

Anyway, at least the regular Las Vegas condo market is now tentatively tiptoeing out of the doghouse. Improved availablity of mortgage financing would make the road forward more sustainable.

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Provided by:

Esko Kiuru
Mortgage Consultant, Father, Golfer, Skier, Beer Aficionado

www.eskokiuru.com - complete mortgage platform
www.BluefoxToday.com - syndicated mortgage and real estate blog

esko@eskokiuru.com
My cell: 702-499-1006

The Crazy Lady Who Wouldn't Leave. Vancouver WA Real Estate

Fri, 20 Nov 2009 15:59:07 -0600

Timely chronicle for sellers on how not to behave when buyers come to tour your listing.

Via Mark Hall Vancouver Washington Real Estate (Elite Realty NW - Keller Williams, Vancouver Washington):

The Crazy Lady Who Wouldn't Leave. Vancouver WA Real Estate

At the doorstep I gave my customary door knock and courtesy ring. It is a habit that I picked up during my first weeks as a realtor®. I always knock and ring the doorbell before I unlock the door. Unfortunately, I didn't have a chance to use the key because the seller opened the door and invited us in!

"Have you shown this house before?" she asked.

"Uh... No." I answered.

"Then you won't mind if I show you around." she said as she ushered us through the door and started her tour. She proceeded to take us through the cluttered house at a pace that would make snails looks like track stars. "This is the bedroom...this is another bedroom... this is the kitchen...this is..."

My clients peeked into a bathroom during her explanation of the second bedroom and were swiftly reprimanded for moving too quickly and asked to "pay attention."

My clients were annoyed and they completely checked out. There wasn't anything that anybody could have said that would have convinced them to consider buying that house. During the remaining home tours, they kept referring to it as the "Crazy Lady's House."

The sad part is that the home would have been perfect for them. The right size and layout. The right neighborhood and school district. The yard that they dreamed of. The problem is that they just can't get past the fact that it was the "Crazy Lady's House."

With that said, let me share a few thoughts with the sellers out there:

1. Most good realtors have toured thousands of homes in their careers.

2. You don't need to show them where the kitchen is, or point out the great room, or let them know that the bonus room could be used as an office, or a bedroom, or a den, or a... well you get the picture.

3. You make the buyer VERY uncomfortable and your presence will probably cause them to cross your home off of their list.

4. Listen to your agent when they talk to you about pricing, when they make suggestions about staging and de-cluttering your home, when they tell you how to successfully sell your home, and when they tell you to leave during buyer visits. You hired them for a reason. Take advantage of their expertise.

5. You don't want to be known as the owner of the "Crazy Person's House!" That would mean that the crazy person is you!

When you choose us to handle your Vancouver WA real estate needs, you choose a team of realtors® who care about you and your family. Buying or selling a home is always more enjoyable when you work with professionals who will listen to your needs and who will work together with you to achieve your objective. We are very familiar with all types a real estate in Clark County and we specialize in Vancouver, Ridgefield and Battle Ground. We are also very experienced with new home and custom home construction having assisted several local builders in selling new neighborhoods in the Vancouver Washington area. Additionally, we have helped numerous families build their own Vancouver WA dream homes. We are dedicated to helping you make intelligent, informed decisions and to providing you with exceptional service. Go to www.ernw.org for more information. See our video here. The Crazy Lady Who Wouldn't Leave. Vancouver WA Real Estate

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Provided by:

Esko Kiuru
Mortgage Consultant, Father, Golfer, Skier, Beer Aficionado

www.eskokiuru.com - complete mortgage platform
www.BluefoxToday.com - syndicated mortgage and real estate blog

esko@eskokiuru.com
My cell: 702-499-1006

Expanded tax credit enticing - Henderson mortgage applicants be advised

Fri, 20 Nov 2009 00:05:58 -0600

The drama is over for Las Vegas valley's - including Summerlin, Southern Highlands, Green Valley, North Las Vegas, Anthem and Mountain's Edge - residents. The first-time home buyer tax credit has been extended because many considered it a strong demand booster for the ailing housing market and more of the same is needed at least for the time being. In fact, it was expanded to include the move-up buyer as well, a factor that should further power the demand side. Let's look at a few of the more appealing aspects a move-up buyer can enjoy with the up to $6,500 tax credit.

The contract deadline is April 30, 2010, preferably with the mortgage already approved and ready to go, and closing needs to happen by June 30. That's the time line.

The move-up, or repeat, buyer is one who has owned and lived in the same property five consecutive years of eight years before the purchase date. He can buy a home that is less expensive than the existing one.

Single taxpayer income limit is set at $125,000 and married taxpayers filing jointly are at $225,000.

The new home has to be the buyer's primary residence. The legislation says nothing about the old home, so it can become a rental or a second home. Selling it now for a reasonable price in Las Vegas would probably be tough, therefore hanging onto it for a spell would make sense. The new house's price ceiling is pegged at $800,000.

Just about any type of a home will qualify. Existing and new construction single-family houses, condominiums, townhouses, manufactured and mobile homes and even boats that are used as principal residences. Investment property and vacation homes are out of luck here.

These are the highlights of the program and may bring Las Vegas homeowners something they can work with. Especially useful can be the provision that the old home does not have to be sold to qualify for the tax credit. An excellent website that will offer further details can be accessed here: http://www.federalhousingtaxcredit.com/

_______________________________________________________________________________

Provided by:

Esko Kiuru
Mortgage Consultant, Father, Golfer, Skier, Beer Aficionado

www.eskokiuru.com - complete mortgage platform
www.BluefoxToday.com - syndicated mortgage and real estate blog

esko@eskokiuru.com
My cell: 702-499-1006

Mortgage lenders rated lower by loan applicants

Tue, 17 Nov 2009 17:45:38 -0600

The housing debacle in Las Vegas and throughout the country is testing consumers' patience in a major way. Real estate values have eroded without mercy in many areas, to the tune of double digit percentages. Some Southern Nevada - featuring Summerlin, Mountains Edge, Henderson, North Las Vegas, Pahrump, Southern Highlands and Anthem - communities have seen drops in the 50 to 60% range. Many homeowners here and elsewhere, as a result of that, find themselves underwater, meaning the underlying mortgage is higher than the property's value. The foreclosure epidemic hasn't let up yet, either. There really isn't much to write home about.

Those applying for a mortgage loan nowadays have run into their own set of issues, largely thanks to the unstable housing market.

To approve and close a mortgage took 30 days in 2008, but this year that time span has grown to almost 47 days, asserts J.D. Power and Associates in its recent study. That is a serious jump and Las Vegas mortgage borrowers certainly can identify with it. Main reason is the added scrutiny every home loan application now receives. Mortgage providers continue walking on thin ice and are doing everything to avoid approving loans that may not work out. A half inch mortgage file can balloon into a 2-inch thick stack after all the supporting documents the nit-picking underwriter requests are in. That kind of stuff can test any applicant's staying power.

Also, home loan firms seem to have shifted some resources away from origination to deal with foreclosures, short sales and mortgage modifications. And what not. It obviously will slow down the already lengthy process even further. So, when J.D. Power comes and asks How did it go?, the consumers will first take a deep breath and then happily let it all out.

There is a way, however, to keep mortgage applicants more or less happy. It has been tested time and again and it works. It's called communication. Home loan originators, and even real estate agents, could include a brief explanation about the current thorny state of the market and the potential challenges it may present early on in the process and that would help prepare them for the journey to a satisfying closing. And a new home.

_______________________________________________________________________________

Provided by:

Esko Kiuru
Mortgage Consultant, Father, Golfer, Skier, Beer Aficionado

www.eskokiuru.com - complete mortgage platform
www.BluefoxToday.com - syndicated mortgage and real estate blog

esko@eskokiuru.com
My cell: 702-499-1006

JUST WHAT IS IT THAT REAL ESTATE LICENSEES DO?? Part I.

Tue, 17 Nov 2009 00:37:39 -0600

Solid review of what real estate agents have to do while working with home buyers and sellers. It's plenty more than many had figured.

Via Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate:

JUST WHAT IS IT THAT REAL ESTATE LICENSEES DO?? Part I.

"YOUR MISSION, SHOULD YOU CHOOSE TO ACCEPT IT . . . " is to manage the orderly transfer of real property from a seller to a buyer. The average consumer doesn't understand a fraction of what we do to help them accomplish their goal.

SELLERS. Home sellers are presented a simple-to-complex marketing plan by listing agents prior to listing the property for sale. The listing agent promises to perform a series of showing, advertising activities geared to receiving contract offers.

BUYERS. Buyers are assisted in their home search by agent(s) who helps to locate, tour properties for sale, write and negotiate the contract and arranging for settlement services.

Sounds easy doesn't it? Actually it is, in the hands of experienced listing and buyers agents and if nothing unusual occurs.

THE MOST HELPFUL AND LEAST UNDERSTOOD PART OF LISTING AND SELLING REAL PROPERTY is the complex and institutionalized systems which include the brokerages employing the licensed agents and brokers, the Multiple List Systems that make the homes for sale information available to licensees and now to the public, the board approved forms that provide consumer protections,

Achieving the consumer's goal of selling or buying real property requires the services of a variety of service providers in addition to the real estate licensee. Achieving the orderly transfer of real property from a seller to a buyer requires services of vendors that perform critical tasks to help the consumer achieve their goal. The vendors include but are not limited to: mortgage providers, home inspectors, termite/radon inspectors, appraisers, title services which include or are managed by attorneys.

WOW! How do we keep up with all of these tasks that are necessary to get to the settlement table? I'm going to disclose a secret that will help many consumers understand how things can go so smoothly and the consumer's goal of selling and buying real estate is achieved.

IT'S ALL IN THE CONTRACT!

That's right. IT'S ALL IN THE CONTRACT!

Getting to the settlement table begins with the selection of an experienced listing or buyer's agent who will MANAGE THE CONTRACT OF SALE.   To demonstrate the importance of understanding contract management, below are the titles included in a typical Contract of Sale.

Description of Real Property

Price and Financing

Deed of Trust

Deposit

Down Payment

Settlement

Equipment, Maintenance and Condition

Utilities

Personal Property and Fixtures

Financing Terms

Appraisal

Purchasers Representations

Access to Property

Termite Inspection

Repairs

Damage and Loss

Title

Possession Date

Fees

Broker's Fee

Adjustments

Attorney's Fees

Performance

Default

Assignability

Definitions

Void Contract

Warranty

Listing agents and Buyers agents must not only understand the meaning and execution of each of these titles, they should help the seller or buyer understand the meaning of all parts of the contract that apply to their particular transaction.

Next: What Real Estate Licensees Do Not Do.

Courtesy, Lenn Harley, Broker, Homefinders.com, 800-711-7988.

_______________________________________________________________________________

Provided by:

Esko Kiuru
Mortgage Consultant, Father, Golfer, Skier, Beer Aficionado

www.eskokiuru.com - complete mortgage platform
www.BluefoxToday.com - syndicated mortgage and real estate blog

esko@eskokiuru.com
My cell: 702-499-1006

Mortgage lender "walkaways" the latest scheme - Las Vegas mortgage borrowers take note

Thu, 12 Nov 2009 22:59:45 -0600

The real estate meltdown that continues to churn on has already seen some vein-popping scenarios concocted by many mortgage banks seeking to take advantage of homeowners facing foreclosure. And new ones keep surfacing. One of the latest creations could be called a home loan provider "walkaway", because that's what it really looks like.

When a mortgage lender executes a foreclosure the normal route is to take possession of the property in question and then decide what to do next. Now many of them have begun leaving the property in the former homeowner's name after the foreclosure, basically the exact opposite of what was done before. This is bound to happen when the home has liens attached to it that would cost a good chunk of money to clear. And most of all when the property is underwater, since now the mortgage provider cannot sell it at break-even basis, much less at a profit.

They are in essence forcing ex-homeowners to at least deal with taxes, possibly also with HOA dues and any code violation penalties for as long as possible. People who have already gone through the trauma of a foreclosure now may have to defend themselves against these collection efforts. That while they are living elsewhere and trying to put their lives back together.

Las Vegas valley - with communities like Summerlin, Henderson, Southern Highlands, Anthem, Mountains Edge, Green Valley and North Las Vegas - mortgage borrowers are especially vulnerable to this type of enterprise. Foreclosure rate here is still high and housing values have plunged leaving thousands upon thousands severely underwater. This of course applies to any region in the country, but those mortgage borrowers most at risk live in the hard-hit areas.

At least one state, Ohio, has enacted new laws that will address this obvious abuse mortgage lenders try to administer on unsuspecting homeowners in distress. Nevada, Arizona, California and Florida, the top four in foreclosures, ought for sure to keep a vigilant eye on this type of development and possibly stiffen up their existing laws. Preferably act before it becomes a meaningful problem.

_______________________________________________________________________________

Provided by:

Esko Kiuru
Mortgage Consultant, Father, Golfer, Skier, Beer Aficionado

www.eskokiuru.com - complete mortgage platform
www.BluefoxToday.com - syndicated mortgage and real estate blog

esko@eskokiuru.com
My cell: 702-499-1006

FAQ's On The New Tax Credit Programs For Homebuyers

Thu, 12 Nov 2009 00:01:13 -0600

Solid info on the new home buyer tax credit program from Gary. Check it out.

Via Gary Woltal - Associate Broker REALTOR® Dallas Ft. Worth (Keller Williams Realty):

Much has been written on the extension of the first time homebuyer tax credit and the credit for existing homeowners. A few frequently asked questions with answers to go along with all of that:

Question: Existing homeowner credit: Must the new house cost more than the old house?

Answer: No. Thus, for example, individuals who move from a high cost area to a lower cost area who meet all eligibility requirements will qualify for the $6500 credit.

Question: I am an existing homeowner. On October 25, 2009, I signed a contract to purchase a new home. I have lived in my current home for more than 5 consecutive years and am within the new income limits. I will go to settlement on November 20. If President Obama has signed the bill by the time I go to settlement, will I qualify for the new $6500 tax credit?

Answer: Yes. The existing homeowner credit goes into effect for purchases after the date of enactment (when the bill is signed). There is no reference to the date of contract for the new credit. The provision looks solely to the date of purchase, which is generally the date of settlement.

Question: I am a first time homebuyer but was not within the prior income limits at the time I entered into my contract to purchase on October 30, 2009. I will be covered, however, by the new income limits. If the new rules have been signed into law by the time I go to settlement, will I be eligible for a credit?

Answer: Yes. The new income limitations go into effect as soon as the President has signed the bill.

The income limit and other eligibility rules will look to your status as of the date of purchase,

which is the settlement date. So if the new rules have been signed when you go to settlement,

you should be eligible for the credit (or a portion of the credit if you're within the phase-out

range).

Question: I am an eligible existing homeowner. I have a fair amount of equity in my home. I have found a home with a non-negotiable price of $825,000. Will I be able to use any of the $6500 tax credit?

Answer: No. The $800,000 cap on the cost of the purchased home is firm at $800,000. Any amount

above $800,000 makes the home ineligible for any portion of the credit. The $800,000 is an

absolute ceiling.

Question: I owned my home for 10 years, but sold it two years ago year and have been renting since. If I purchase a home, will I be eligible for the $6500 tax credit if I meet all the other eligibility tests?

Answer: Yes. Because you lived in the home for more than 5 consecutive years of the previous 8, you

will qualify for the $6500 credit. For example, Say John and his wife bought a home in 2000

and lived there until 2008 when he got a divorce. Whether John has been renting or bought in

the interim, he WOULD INDEED be eligible for the credit because he owned a home and

occupied it as his principal residence for 5 consecutive years out of the last 8 years. The

keyword here is "consecutive." As long as he lived in that house for 5 years straight what he

did since 3 years doesn't impact eligibility.

Question: I am an eligible first-time homebuyer. I entered into a contract to purchase on November 1, 2009. Do I have to go to closing before December 1? How does the extension date affect me?

Answer: You do not have to close before December 1. Once the legislation has been signed, it will be as

if the Nov 30 date had never existed. Therefore, so long as the contract settles before April 30

(or July 1, worst case), the purchaser will be eligible for the credit.

_______________________________________________________________________________

Provided by:

Esko Kiuru
Mortgage Consultant, Father, Golfer, Skier, Beer Aficionado

www.eskokiuru.com - complete mortgage platform
www.BluefoxToday.com - syndicated mortgage and real estate blog

esko@eskokiuru.com
My cell: 702-499-1006

Southern Nevada - Las Vegas, Henderson, Summerlin - housing stats on the mend in October

Tue, 10 Nov 2009 16:47:41 -0600

Las Vegas real estate has recently been the punching bag of many industry observers and for a good reason. Mortgage foreclosure rate here is still reaching for the moon, housing inventory remains high and the economic picture is painted in dark colors. True, mortgage rates are enticing and home prices have plunged and have together provided some hope, but a lot more needs to happen for it to reach the "normal".

What's encouraging is that the vital signs are slowly improving, with emphasis on the word slowly.

As was reported by GLVAR, or Greater Las Vegas Association of Realtors, 3,535 single-family houses were closed in October, logging a nice 5.3% boost from September. This actually translates into a 30.1% jump from a year ago, a strong show of progress. As a note of caution is the fact that much of the demand still comes from first-time buyers and opportunistic investors. They are almost exclusively feasting on the lower end of the price scale.

Southern Nevada - including Mountains Edge, Anthem, Green Valley, North Las Vegas and Southern Highlands - median home values labored higher to $139,100, a $1,100 advantage over September. It's not much but Sin City gladly takes anything at this point. The price curve is in essence trying to establish some kind of a steady course upward, taking one small step at a time. On the sobering side, it is still down 26.8% from last year.

The housing inventory in Las Vegas continues to hover above the psychologically important barrier of 20,000. In October it in fact grew a little, to 20,998, amounting to an about 1% rise. As GLVAR states, a large share of this is pending a sale in some form, which is good, leaving only 8,000 or so listings without a contract. Nevertheless, this statistic has remained stubbornly high for months on end and needs to come down for a chance to spawn a sustainable recovery.

The word optimism is slowly returning to the vocabulary of many Southern Nevada real estate observers. Much more needs to be done but it's good get a taste of it anyway.

_______________________________________________________________________________

Provided by:

Esko Kiuru
Mortgage Consultant, Father, Golfer, Skier, Beer Aficionado

www.eskokiuru.com - complete mortgage platform
www.BluefoxToday.com - syndicated mortgage and real estate blog

esko@eskokiuru.com
My cell: 702-499-1006

Mortgage Insurance Companies - losses increase concerns

Mon, 09 Nov 2009 22:10:54 -0600

A vital part of the housing industry but largely forgotten during this mayhem. Richard fills us in.

Via Richard Smith Mortgages Home Loans FHA TN GA AL (American Acceptance Mortgage, Inc):

Mortgage insurance company losses are a mounting concern for the industry.
A concern that has not received much coverage in the media, nor in Congress. These companies have taken a beating in the market downturn.

Mortgage insurance enables home buyer to purchase with less than a 20% down payment. For FHA loans, the home buyer purchases government mortgage insurance from HUD. For conventional loans, the home buyer purchases private mortgage insurance.

Several companies offer mortgage insurance. All have taken heavy losses and as a result have tightened their lending guidelines. In many cases the MI companies have tightened their guidelines more than Fannie Mae and Freddie Mac have.

In other words, Fannie or Freddie might allow a loan to be, if the borrower can obtain mortgage insurance. But if the mortgage insurance is not availabie, then the loan cannot be made. Even though Fannie and Freddie guidelines would have allowed it.

Mortgage insurance is critical to home affordability and to the housind market.

Mortgage insurance is in trouble.

Standard and Poor's is looking closely at the larger mortgage insurance companies. This look may mean a credit rating downgrade.

The impact - higher premiums, tighter guidelines, less approved loans. It may be that Congress needs to look into what can be done to support this industry that is so vital to the continued housing recovery.

In an earlier post I suggested a twist on the home buyer tax credit that might have provided a boost to the struggling mortgage insurance industry, and might have actually helped create new home buyers. Both of these issues remain unaddressed.

_______________________________________________________________________________

Provided by:

Esko Kiuru
Mortgage Consultant, Father, Golfer, Skier, Beer Aficionado

www.eskokiuru.com - complete mortgage platform
www.BluefoxToday.com - syndicated mortgage and real estate blog

esko@eskokiuru.com
My cell: 702-499-1006

Southern Highlands - Las Vegas NV - mortgage recipients have new foreclosure defense weapon

Sat, 07 Nov 2009 22:25:46 -0600

Southern Nevada - with communities of Henderson, Anthem, Summerlin, Green Valley, Silverado Ranch and Mountains Edge - is in the very eye of the tornado when it comes to real estate markets sucked into its furious spin. Home loan foreclosures here are now as commonly talked about as the weather. Many homeowners have given up on trying to hang on to their properties while some are tenaciously seeking solutions to stay on. The latter have several avenues to explore, either directly through their mortgage lenders or then with assistance from a legal counsel.

Now they have a new weapon to deploy. It's called the retro appraisal.

It simply is an appraisal that is based on a past date. It could be three years ago, or five years ago. Normally appraisals are done for the present to be part of a mortgage application, vouching for the collateral's value.

Lawyers representing Las Vegas homeowners in mortgage foreclosure cases, foreclosure mediations and home loan modifications can now rely on these retro appraisals. The basic argument is that lenders were approving loans back in the day using inflated appraisals, largely ignoring any risk management protocols they may have had in place. As the infamous bubble was gathering steam the goal generally was to close mortgage loans as soon as possible for maximum profit and then sell them off to investors. The housing market was piping hot and everybody wanted to make the most of it.

A rather high number, put at 70%, of appraisals for mortgages were plenty overstated between 2005 and 2007, says Retro Appraisals, a firm that has created the back-looking valuation method. "The historical revised real estate appraisal is extremely helpful to a borrower or his or her counsel when seeking to modify a mortgage, defend against a foreclosure or take part in a court-ordered mediation," explains the company's co-founder.

This instrument can be truly effective in the more severely affected housing markets like Las Vegas and much of Arizona, California and Florida. The bubble really galloped out of control in them, artificially pushing up prices that then in many cases became the official appraisals for mortgages. If employed properly, it can be a useful bargaining tool.

_______________________________________________________________________________

Provided by:

Esko Kiuru
Mortgage Consultant, Father, Golfer, Skier, Beer Aficionado

www.eskokiuru.com - complete mortgage platform
www.BluefoxToday.com - syndicated mortgage and real estate blog

esko@eskokiuru.com
My cell: 702-499-1006

Home loan modifications turn creative - Las Vegas mortgage borrowers could benefit

Thu, 05 Nov 2009 20:22:31 -0600

Mortgage lenders and servicers have generally been going at a snail's pace, or slower, in modifying homeowners' loans. Many applications to do so have been actually declined for a variety of reasons. Some borrowers have just plain given up on the process due to all the hoops they have to jump through and still not get anything meaningful done. And all the well-meaning government programs introduced so far have produced at best mixed results.

A major mortgage provider, Wells Fargo, is doing something different now. It is taking the lead in home loan mods by taking in the so called Pick-A-Pay mortgages, an option ARM product it inherited with the recent Wachovia purchase, from distressed borrowers and replacing them with interest-only paper with due dates possibly as far down the road as 6 to 10 years.

The plan also includes the much sought-after mortgage principal reduction that every home owner who is underwater can appreciate. According to Wells Fargo its modifications to date have resulted in about $2 billion worth of balance cutbacks, averaging roughly $46,000 per loan. From what it looks like is that the bank is offering to reduce the underwater portion by about half. Let's say a home has a loan balance of $400,000 and is now worth only $200,000, Wells Fargo would propose a new interest-only mortgage amount at $300,000.

Las Vegas valley - including Summerlin, Henderson, Southern Highlands, Anthem, Mountains Edge and Green Valley - home owners who are currently on Wells Fargo mortgages could benefit from this. It's predictable that it is mainly targeting the most-ravaged real estate markets where being underwater is very common. Las Vegas certainly qualifies here. This could also inspire other mortgage lenders to come up with similar modification programs.

People are increasingly walking strategically away from their home loans which has obviously influenced Wells Fargo's decision makers. It clearly makes decent sense to give up half of the negative equity than the whole thing when a foreclosure sale is the other option. Every home owner isn't going to buy into this plan because it can still leave them on the hook for years to come. Most-affected Las Vegas residents, for instance, are likely looking at years in double digits before their home values recover to match their mortgage balances, provided the economy here gets back on its feet soon.

The healing of the housing market, in Las Vegas and nationwide, will come. Although it could be painfully slow. Wells Fargo is evidently betting that it is doing that within ten years and it could be right. Everyone would be happy to hoist a cold pint for that.

_______________________________________________________________________________

Provided by:

Esko Kiuru
Mortgage Consultant, Father, Golfer, Skier, Beer Aficionado

www.eskokiuru.com - complete mortgage platform
www.BluefoxToday.com - syndicated mortgage and real estate blog

esko@eskokiuru.com
My cell: 702-499-1006

Las Vegas mortgage defaults increasingly strategic - mortgage walkaways rise among wealthy

Tue, 03 Nov 2009 17:12:41 -0600

The real estate market has been cruel, to be perfectly honest, to homeowners across the country. Housing values in many cities and regions have dropped so far and fast that it's sometimes hard to keep track of it all. Much less understand how the utter devastation is possible. But that is the cold reality every homeowner is faced with today.

Southern Nevada - with communities like Las Vegas, Summerlin, Henderson, Southern Highlands, Anthem, Green Valley and Mountains Edge - has absorbed some of the most severe blows of them all to its real estate prices. In the same boat are at least Arizona, California and Florida. Industry observers are talking about values often dipping below replacement cost. With that type of erosion comes another grim problem; dragging scores of mortgage borrowers underwater on their homes.

Many Las Vegas homeowners are increasingly thinking of walking away from the obligation. The more they are upside down, or underwater, the more likely it is that they'll do just that. It's hard to consider moral responsibility that much any more when in-the-red numbers are typed in six figures.

What's noteworthy is that the well-off are now more liable to execute a strategic walkaway from a mortgage than others. Experian, the credit firm, and Oliver Wyman, a management consulting shop, have conducted a study on this and it proves the intriguing trend. The reasons of course are many, although the availability of money is not one of them.

Perhaps some of these mortgage borrowers feel that Wall Street operators are largely responsible for the real estate fiasco and their own current troubles and this is payback time. Wall Street banks and investment firms created the subprime home loan products, packaged a multitude of loans into complicated mortgage-backed securities for sale to investors and colluded with bond rating agencies to hype the bonds' potential. Many of them are now surviving on taxpayer largesse, but are still reluctant to help homeowners in distress.

Also, these people probably have the confidence in their ability to recover in a reasonable time frame from any damage to their credit. They often have a decent knowledge base of how credit works. They are fairly secure in their employment even in this down economy and in case a job loss is inevitable have predictably put away a sizable safety fund to draw from for months.

That well-to-do homeowners are more apt to pull off a strategic mortgage default is in some ways unsurprising. In pure monetary terms they usually are underwater the most, like when a $1.2 mil mini mansion in Las Vegas loses 50% of its value, that's $600Ks. That's a bundle.

_______________________________________________________________________________

Provided by:

Esko Kiuru
Mortgage Consultant, Father, Golfer, Skier, Beer Aficionado

www.eskokiuru.com - complete mortgage platform
www.BluefoxToday.com - syndicated mortgage and real estate blog

esko@eskokiuru.com
My cell: 702-499-1006

How Much Is My House Worth?

Mon, 02 Nov 2009 20:46:02 -0600

Here is a solid take by Alex on home price development during bubbles and so on. Good read.

Via Alex Silberman (Keller Williams):

As it frequently happens when I’m at a party, the subject of occupation comes up and when people discover I’m a realtor, the conversation usually gets very personal because people immediately want to know from an insider how they’ve been affected.

This weekend was no exception. We were at an excellent Halloween party (no you don’t get pictures of my costume) and the subject of a particular market came up. Although it seemed as if different price ranges were talking, the question was the same: What is my house worth and when will I get my money?

How should someone who is contemplating the value of their home feel?

As always, it depends when one bought, and when they are thinking of selling. If someone bought their home in 2001, they enjoyed six unrealistic and unsustainable years of 10-20% appreciation, while traditional appreciation had been closer to 4-5% per year.

Let’s compare a hypothetical 25% loss of value between 2007 to today with what reality should have been. Yes, I’m using a post bubble lens but bubbles are only real for brief periods, and that’s the best lens we have.

If a $500K house were bought in 2001 and appreciated 12% yearly until 2007 then depreciated 25% from 2007 to today, the house would be worth just over $764K. On the other hand, if that house appreciated a consistent and mere 5% (boy doesn’t that sound good), that house would be worth less than $739K!

Yeah, I know it hurts, and it’s not politically prudent to tell you, but you shouldn’t be complaining. That $45K was monopoly money you get to keep.

If you bought that same house in 2006 for $881K, then things are a bit different for you as it will take you four years (at 4% appreciation) to get back there. The good news for you is that get back there you will, if you don’t need to sell sooner.

Many have genuinely suffered over the economic downturn in the past year and a half, but many also are still enjoying the benefit of the crazy price climb.

The financial crisis has been a bitter pill to many people, but we shouldn’t be quick to forget the honey we’re still tasting.

You know where to send your hate mail.

Alex

_______________________________________________________________________________

Provided by:

Esko Kiuru
Mortgage Consultant, Father, Golfer, Skier, Beer Aficionado

www.eskokiuru.com - complete mortgage platform
www.BluefoxToday.com - syndicated mortgage and real estate blog

esko@eskokiuru.com
My cell: 702-499-1006

Using your mortgage and real estate blog to enhance existing relationships - a response to Bob's challenge

Fri, 30 Oct 2009 18:09:01 -0500

When I launched a monthly Las Vegas email mortgage and housing newsletter a few years ago the main challenge was to produce articles with solid content for my past customers and those who had signed up for it. The plan was to have four articles in each issue. To write in the last week of every month four of them just for this purpose seemed like a lot. But around that time I joined ActiveRain and began blogging here and soon enough this great big light bulb goes on in my head. Why not use recent mortgage and real estate posts from AR for this newsletter. The material is fresh and broad and many recipients probably are happy to receive a short collection of the best I have to offer once a month. And voila.

Nowadays the newsletter starts with an update on mortgage interest rates, something that I don't blog about at AR. So three spots are now left for genuine AR posts. Every so often I fiddle with what type of a lineup will be presented for the next several months, so that's how the interest rate roundup sneaked in there. Moreover, each blog gets only the first two paragraphs pasted on the newsletter and then there is a link below that takes the reader to my AR blog for the rest of the material. The idea is to keep the newsletter rather short and to the point.

Since I am a mortgage consultant these blogs in the newsletter cover the home loan market on a national scale, but I also include material on the real estate sector. Being in Las Vegas local housing will certainly get its share of attention. The mortgage topic earns at least one blog, sometimes two, per issue. It depends on what had happened in the last few weeks. Then the others are on the real estate side, one for sure about how Las Vegas housing stats turned out the previous month. This way the presentation is more or less balanced. These blogs are always from the past two or three weeks, so the info is current. That's what clients expect.

Here are examples of the blogs that were included in my past email newsletters:

October 2009

- Southern Nevada existing housing stats down a bit in August
- Fed to continue buying mortgage securities into 2010
- Las Vegas real estate prices slow to recover?

September 2009

- Las Vegas resale real estate numbers remain steady in July
- Home buyers beware - walkable neighborhoods command higher prices
- Sin City real estate among most affordable again

_______________________________________________________________________________

Provided by:

Esko Kiuru
Mortgage Consultant, Father, Golfer, Skier, Beer Aficionado

www.eskokiuru.com - complete mortgage platform
www.BluefoxToday.com - syndicated mortgage and real estate blog

esko@eskokiuru.com
My cell: 702-499-1006

Subprime home loans are back - Las Vegas mortgage borrowers go FHA

Thu, 29 Oct 2009 18:23:28 -0500

Mortgage loans that were labeled subprime just a few years ago were partly responsible for the notorious real estate bubble. When it burst and let all the air out, the subprime product quickly disappeared from the bloodied scene. Many housing observers warmed up their fingers over keyboards and wrote all these tearful obituaries, believing it would be gone for good. But guess what? It's now back.

This much-criticized mortgage segment has adopted a new backer, however. Subprime used to be pretty much exclusively conventional lenders' territory, until the recent thermonuclear event. With their exit a new player emerged to fill the void, Ginnie Mae, a wholly-owned government corporation created within HUD. Ginnie Mae is another adorable name in the mortgage arena, besides Fannie Mae and Freddie Mac.

Ginnie Mae operates a little differently from its above-mentioned and better-known sister agencies. It guarantees investors timely payment of interest and principal on MBS, or mortgage-backed securities, supported by federally insured loans, meaning FHA, and federally guaranteed loans, in this case VA. The majority of its guarantees go to these two organizations. Ginnie Mae is not in the business of buying or selling loans or issuing MBS.

According to the Federal Reserve Bank of San Francisco, FHA mortgage lending has skyrocketed in the last several months, achieved with the Ginnie Mae's guarantees. In 2006 subprime paper accounted for about 20% of all home loans. Then its market share plunged to near zero and now it is climbing back up again. San Francisco Fed asserts that today mortgage borrowers nationwide with FICO scores under 660 command slightly over 20% of the market. In short, it's back to where it was only three years ago. That raises some eyebrows. And rightfully so.

FHA has flirted with trouble lately as mortgage loan losses are mounting. Sinking property values have a lot to do with this, as are the lenient underwriting guidelines FHA uses, in other words subprime lending, and the generally weak economy. As of right now it looks as if it doesn't need a government bailout, feared by many. If home prices stabilize soon across the board, it'll be safe.

Las Vegas valley - including communities of Mountains Edge, Summerlin, Anthem, Henderson, Southern Highlands, Green Valley and North Las Vegas - has benefited greatly from FHA mortgages. Especially first-time home buyers have been using them and the nice tax credit to provide demand in an otherwise sluggish market. Without FHA the light at the end of the tunnel for Southern Nevada housing market would be just a tiny speck

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Provided by:

Esko Kiuru
Mortgage Consultant, Father, Golfer, Skier, Beer Aficionado

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esko@eskokiuru.com
My cell: 702-499-1006