In today's real estate market, with around 2 million foreclosures expected in 2009, it is not uncommon to see a foreclosure tour bus loaded up with prospective homebuyers who are all hoping to find the best deal on a bank owned home in the Las Vegas Valley. If you are interested in purchasing a foreclosure, here are a few things to keep in mind to make the best of your foreclosure tour.
Sign up for tours run by buyers' agents, who approach the properties with the buyer's needs in mind, not the sellers'. Be sure to find an agent who is professional, knowledgeable, and honest about the homes you'll be viewing. Most of the homes you'll see are distressed properties, and you'll need an agent who is willing to talk with you about all the repairs the home will need and how much that will allow you to knock off the asking price.
Choose a free tour that is easy to sign up for, and tours in the right area of town (if you're interested in buying in Henderson, be sure the tour shows homes in that area; otherwise it will be a waste of your time). Also, avoid tours that require a lengthy interview or application asking for your financial information, or those that don't provide drinks or snacks - you'll be on the bus for several hours.
Don't consider purchasing any of the homes you see on the tour. You'll only be seeing a small sampling of the available homes in any given area, and in a wide price range. Use the homes you see as a guide, choosing only one or two in your price range to give you an idea of what's out there. Your agent can then show you several other properties like those you are interested in to decide which is best for you.
Be prepared for the terrible shape many of the homes you'll see are in and consider repairs part of the deal, not a liability. Needed repairs enhances your bargaining power, and you need to be equipped to use it. Also, don't be discouraged by high asking prices. If your agent is good, he or she will tell you if the listing is overvalued, and by how much. Tap the expertise of your fellow bus riders - many of them are likely to be investors looking for a rental property. Feel free to ask their opinions and gain from the knowledge they've already acquired.
Tap the expertise of your fellow bus riders - many of them are likely to be investors looking for a rental property. Feel free to ask their opinions and gain from the knowledge they've already acquired.Don't feel obligated to use the lender on the bus, but do ask any questions you have about the mortgage process. You'll still want to shop around to get the best rate possible.
Whether you're an investor or looking to get a great deal on a home you'll live in, I am here to help. With a background in finance and lots of experience selling bank-owned homes, I am prepared to give you the help you need in finding a foreclosed property that would be a good match for you.
These days the banks have tightened their lending practices for home mortgages. If you don't have enough cash for a 20% down payment on your las Vegas home, finding a mortgage for the home you want to buy here in southern Nevada can be a challenge. Even if you are able to find a lender willing to give you a mortgage with less money down, don't make the mistake of thinking all of your work is behind you. Now, you'll need to get private mortgage insurance (PMI), which protects lenders by paying off your loan if you default - and that might be harder than you think.
Back when lenders were more reckless with their practices, it was common for mortgage insurers to accept any borrower the banks were willing to finance. Today, a record number of those low down payment loans are now in default and insurers are losing billions of dollars. This has caused them to enact tighter standards than most banks, and has resulted in them insuring fewer loans. It is not unheard of now for borrowers to be approved for a mortgage, but rejected for PMI because of a low credit score or high debt-to-income ratios. Other restrictions related to the property and the loan type apply, as well.
If you are looking for a home and will require PMI, you might be disqualified if you have:
• a low credit score - insurers are typically requiring a score over 720
• a down payment less than 10% of the loan amount for a single family home/15% for a condo
• a debt-to-income ratio above 45%
If you are unable to qualify for PMI because you don't have 20% to put down on a home, you might still be able to qualify for a mortgage through the federal government. FHA loans are offered to borrowers with a higher debt-to-income ratio and credit scores as low as 580, and VA loans are available to veterans.
Are you ready to buy a home in Henderson or Las Vegas and already have a mortgage pre-approved? Give me, Yonas Woldu a call.- I'm your real estate expert in the Las Vegas valley! Also visit my Vegas Real Property website and the new AskYonas website.
With foreclosure rates increasing across the nation and here in the Las Vegas valley, more and more homeowners are receiving notices for the sheriff's sale. The conventional advice from legal experts has been to immediately pack up and move, but that is changing. Recently, we've been seeing a new phenomenon coined "bank walkaways," when the bank begins the foreclosure process, then walks away with no word or explanation, leaving the homeowners wondering what happens next. And legal experts aren't sure, either.
Today, if a homeowner leaves after getting a foreclosure notice and the bank fails to finish the foreclosure, the homeowner opens themselves up to being sued by the city for failing to maintain the abandoned property. After all, the home is still in their name. In some cases, water pipes have burst in abandoned homes, creating a flooded basement, water damage, and potential toxic exposure to mold both inside the home and within the neighborhood. If the homeowner had stayed, damage could have been avoided to the property, and the neighbors would be spared from their property values deteriorating further.
In addition, leaving before the bank really owns the home can open the homeowner up to several other problems. These can include:
• a restarted foreclosure process months or years later (after it was assumed things were settled)
• a sold mortgage and a new, more agressive debt collection service coming after the homeowner
• possible legal issues related to taxes, fines, upkeep, code violations, repairs or even demolition costs.
What should a homeowner do if they're facing foreclosure? More experts are advising that they stay in the home, even if they aren't paying their mortgage. While it is still unclear what legal tangles bank walkaways will create, the additional problems homeowners might face if they abandon the property could make the nightmare even worse. In the short term, people will be living in their home without having to pay - in some cases, homeowners will go for a year or more with no one asking for money. If possible, homeowners should be putting away what would have been their monthly mortgage payment in a bank account each month and leaving it there. It could be used in future loan modification negotiations with the mortgage company if it reappears, or as a security deposit on a rental, if people have to move quickly.
Have foreclosure questions? Give me, Yonas Woldu a call - I'm your real estate expert in the Las Vegas valley! Also visit my Vegas Real Property website and the new AskYonas website. For more information on Nevada foreclosure laws, you can also read this online article, and visit RealtyTrac.com to find out what to expect if you're facing foreclosure on your home.
As we're headed into fall, and the real estate market moves toward its traditional slump at year's end, those in-the-know are speculating the strength of the Vegas market from October through December. What might be a wild card this year, and into next, is the $8,000 tax credit currently offered to first time buyers (or those that haven't owned a home in the past three years) that expires on November 30th. This tax credit is being debated by Congress for extension into 2010, and analysts are saying it will likely be extended. What is even more encouraging, is that the tax credit may also be offered to other buyers who have owned a home, further stimulating the real estate market. All eyes are on Washington.
Most real estate experts agree that such an extension would continue to energize the local market, but there are some who are concerned about what that tax bill looks like to the average tax payer. The national economy is struggling, and many people are still losing jobs - in the Las Vegas valley, unemployment is now at a whopping 13 percent. Foreclosures in Nevada were higher than any other state in the third quarter, and show no signs of slowing. Everyone agrees that recovery will largely be reflected in the housing market, but will additional tax credits create a false sense of security while providing a boost to the market? Proponents say that without this government intervention, home prices will go much lower, banks will continue to lose money, and the economy will have little chance of quick recovery.
Meanwhile, as more foreclosures enter the market, prices will likely continue to edge toward greater affordability. In addition, mortgage rates continue to remain historically low. That, coupled with tax incentives for buyers, is likely to be a winning combination for Las Vegas real estate.
Many experts are saying that it is possible that we won't be able to accurately judge where the market is going until late February 2010, when the home buying season heads back into full gear for the next year. That's when we'll know whether extended tax credits, if they pass, are effective.
The $8,000 tax credit could can give first time homebuyers a needed edge in the Las Vegas market. Have questions? Need help planning your personal real estate future? Contact Yonas Woldu today by visiting Vegas Real Property website and the new AskYonas website.
The Las Vegas home buyers market is ripe for investors, who often pick off the homes most affordable to first time homebuyers. In August, 2009, the median home price in the city was $210,000 when bank-owned and distressed property sales are figured in, or $225,000 for non-distressed sales. Median condo prices in August were $123,000. Despite the competition, first time homeowners have some good opportunities to buy a home or condo that was previously valued at much more.
If you are in a position to buy a Las Vegas home right now , one good incentive isthe first time homebuyers tax credit about to expire on November 30. Since processing your loan, appraisal, and paperwork for the home takes longer these days, October 15, or to be safe, even October 1, is the deadline. Only those who have closed on their homes before December 1 can claim the credit.
With the credit, can get up to $8,000 or 10% of the value of the house for your purchase. It is good on a variety of single family homes, townhouses, and condos. All you have to do is live in it for three years and the credit does not have to be repaid. If you view the home as a starter home, you can later sell it and apply the equity toward the downpayment on your next home.
At the moment in Las Vegas, there are plenty of bank owned properties up for grabs and more to come. If you buy one, you can use the $8,000 credit in conjunction with a 203K loan to renovate a primary residence where you will live for three year before you sell it or rent it out. If you want to be a landlord later, you can turn it into rental property then.
As a new homeowner, $8,000 can help you in many ways.
The credit is cash in your pocket, Once you claim it as a credit, the $8,000 in cash will come back to you and will help you get the things you need for your home and subsidize your first few mortgage payments. Cash is often tight when you move in. You can buy those new drapes, add deck, or renovate the bathroom. You can even transition from an apartment to a home with additional money.
With $8,000 on the way, you get more home than you planned. You should aim for an affordable house, but the credit can effectively bring down the cost of the home so you can buy a home at the upper end of your price range. Since investors are vying for lower priced homes, you might have less competition for a higher priced home. Since many homes are already priced to sell at incredible prices, you can still plan on lowering your total lower cost by $8,000 when you apply this credit to the principle.
If you would like to apply the credit toward a down payment, there are several ways to do use it for this purpose. Since May, 2009, you can have the credit monetized for any part of your down payment over the3.5% required by FHA or can use it toward closing costs. State housing agencies, certain non-profits, or certain lenders can monetize the credit via a bridge loan or second mortgage to be repaid when the credit comes back. If you need help with your down payment or need help with closing costs, the credit could help you now.
The $8,000 tax credit can give first time homebuyers a needed edge in the Las Vegas market. Have questions? Need help planning your personal real estate future? Contact Yonas Woldu today by visiting Vegas Real Property website and the new AskYonas website.
Housing has been on a roller coaster these last few years in Las Vegas but at last the market is bottoming out and housing prices are the most affordable in years. This makes it a great time to buy, especially for first time homebuyers who can apply the $8,000 to their purchase to effectively lower the cost. Young couples buying their first home, singles who want a condo, and families who have been renting all their life have a government-sponsored incentive to sign on the dotted line and become homeowners.
In the midst of all this, it's easy to forget that the definition of "first time homebuyer" is much broader than the term implies. If you have not owned a home for THREE years, you can qualify for 10% credit on your home up to a maximum of $8,000 if you are creditworthy and not exceed income limits of $75,000 to $95,000 for singles and $150,000 to $170,000 for couples. In certain cases, you can even apply it toward the downpayment.
Who might be interested in this?
Maybe you who took early retirement few years ago and moved to an apartment but want to be owners again. With the incentive, you could find a nice little house in a planned community like Green Valley.
Maybe you moved to a Los Vegas a few years back, and with the housing market being in an uproar, you keep renting. Now is the time to realize the American dream by settling down in an affordable home in the city or in a nearby area like Henderson.
Maybe personal circumstances caused you sell your home and move home for a while. You lost your job, got divorced, became ill, or wanted to care for a parent. Whatever the circumstances, it's been three years and time is ripe for buying that condo you've always wanted.
Regardless of why you ceased being a homeowner here or more years ago, Yonas Woldu can help you achieve ownership again in you an affordable house in Las Vegas, Green Valley, or other areas of Clark County . Thinking of buying a bank owned home? Yonas can tell you how you can maximize your options by using the credit in conjunction with a 203K renovation loan. Visit Vegas Real Property website and the new AskYonas website. Time is running out on the $8,000 new homebuyer tax credit, so call Yonas today to assure that your loan will close in time.
In the mortgage mess we are still working out of, there is plenty of blame to go around - including to appraisers who overvalued Las Vegas property to support their friends in the mortgage industry. To make the process more impartial and remove pressure on appraisers to aim for a specific value, new regulations went into effect on May 1, 2009 to distance all the parties in a loan transaction.
As a result of lawsuit in New York brought by the Attorney General against the appraisal division of First America Corp. which supposed inflated 260,000 Washington Mutual loans, a set of regulations known the as Home Valuation Code of Contact was implemented May 1, 2009. The law forbids any communication between appraisers and anyone who would derive income form closing the sale.
Though this sounds like a good fraud-busting approach, the law has had many annoying and perhaps unintentional consequences that can delay closings and increase cost for customers.
Not all the communication of the past between loan officers and appraisers promoted fraud. Loan officers tended to use appraisers they had a business relationship with - people who knew the area and who they could call to discuss a particular case. Given that appraising is not an exact science, sometimes more information made the appraiser willing to reevaluate his figures. Did this mean that loan officers selected appraisers who were more willing to consider new information or were more liberal? Sure it did. Was this always a bad thing? The answer is a resounding "No!"
Arguably, some guidelines for communication might be order, but as written, the law is very inflexible. It applies to all non-FHA and VA loans coved by Fannie Mae or Freddie Mac.
Appraisers are appointed by third party Appraisal Management Companies (AMCs) which randomly select appraisers who might be from out of the area, new, untrained in the type of property involved, or not very good. The appraisers might also come from an internal appraisal company that is separate form the loan division.
The AMC gets a referral fee which is often passed along to the consumer, as the appraiser, already underpaid, does not want eat. This means that the home buyer will have a higher fee to deal with and- also as a result of HVCC, will have to pay it upfront before closing.
Appraisals are likely to take longer, a real inconvenience to customers especially when considering that other parts of the transaction are taking longer too.
The consumer gets a copy of the appraisal report three days prior to closing - a problem if the appraisal is so far off that the bank wants more down payment or refuse to write the loan or disagrees with the appraisal. Any discrepancies or updates will further prolong closings
Given the wacky Las Vegas real estate market, with its highly inllated and then bargain basement housing values, implementing this law should have some interesting results. Outraged lenders and real estate agents Realtors are calling for the regulations to be temporarily shelved. Unless and until this occurs, real estate agents are preparing their clients to wait and have a few hundred dollars accessible to pay the appraiser.
Las Vegas is a gambling town but even the pros know you shouldn't push your luck- especially with a sure thing. The $8,000 first time homebuyer tax credit is assured to any creditworthy person who has not owned a home in the past three years. The main way to blow this pile of cash is to wait too long. The November 30, 2009 deadline is fast approaching. It may look like you have three months to play with, but this year there are other factors at play. If you wait too long, you will loss $8,000. This true anywhere but there are additional issues that are specific to Vegas.
Mortgage loans are available at historically low rates but getting one is trickier than in the past. Just as the credit itself was put in play by depressed conditions in the housing market, sloppy credit practices in the past set the stage for current mortgage drama. Lenders mandated to prevent the abuses of the past now have escalated the requirements to get a loan. Requirements among lenders vary, so a smart buyer needs to be pre-approved for a certain dollar value of mortgage before even starting the buying process. Buyers must present W-2s, paystubs, savings statements, perhaps credit card statements or other records of debt to the lender who does a credit check. The process is automated, but a buyer who meets the requirements has the bank's statement of how much house to look for. A buyer who doesn't make it has to find another lender, find a way to improve their score, or postpone their plans. All of this takes time while the clock for the credit is ticking.
A very few first time buyers buy a multi-million dollar started home, but most aim for more affordable, less expensive homes. These are the homes that are moving first everywhere, but in Las Vegas, there is a lot of competition from foreign buyers or cash buyers who are aiming to invest in the same group of homes the first time buyers want. This could result in a bidding war or a lost opportunity that signals the buyer to keep looking. Finding a home in a desirable area that meets the bank's price range can be a time-consuming search.
Armed with a sales contract, the would-be buyer is closer to ownership but new Federal disclosure laws and new appraisal policies further elongate the process. Intended to accurately assess property values and communicate the true value of the home and the true cost of credit, the new laws add three days here, five days there - a potential issue if it is getting close to November 30. New appraisal regulations pose a whole set of issues we will discuss in an upcoming blog; suffice it to say that appraisers from out of the Clark County area could be inaccurately assessing Vegas properties with no input permitted from real estate agents or lenders. The resulting appraisal could come in out of sync with what the bank is willing to lend for; this often means that the buyer is scurrying to lay hands on extra money or sent shopping for another appraisal or another lender. The risk here is even greater in Vegas where inflated housing dropped precipitously in value over the last couple years. Both time and money are at stake.
The $8,000 tax credit is a sure-thing opportunity for buyers to offset their housing costs. If you want to be winner in this unique tax-credit jackpot, it's time to get the process in motion. there's talk that the credit will be extended. Right now, that is on on the table so you still need to act now.l
If you're a Las Vegas homeowner with financial problems that you expect to overcome soon, you may have a different agenda than someone who sees selling their home as the only way to escape foreclosure. Assuming your home is one you like, want to keep, and can afford, talking with your lender in time of need may reveal a number of options. Foreclosure is costly for lenders, so if you approach them in a timely manner, they may be willing to provide some temporary relief or "workout" for the problem.
Most people these days know the big three weapons that lenders use to prevent further loss but there is a lot more in the lenders' arsenal than foreclosure, short sale or deed-in-lieu. Less final remedies for troubled homeowners include modifying the length of the loan or the interest rate, waiving penalties and fees, deferring payments to the end of the loan and making it longer, applying past due amounts to the loan balance and slightly increasing each monthly payment, hold a fixed rate on a loan ready to adjust, lengthen an introductory payment or interest rate, or even granting temporary forbearance to stop the payments.
Banks, not being social service agencies, do not widely advertise this "softer" side; in order to bring it out and allow a workout, you need to make a good case for yourself to make the lender confident that this will stop further loss. As is true with all credit issues, contact your lender at the first sign of trouble. Your steps might include:
• Explain why you are in trouble and why you think the problem is temporary. If a change in the interest rate is causing your payment to adjust upwards, you need to show evidence you paid in a timely manner before change. If your problems were caused by job loss, illness, or family circumstances, you need to show that it is likely you will have a job soon or that the crisis has passed.
• Show proof that you have been trying to work things out on your own, through job hunting, part time jobs, or by reducing your living expenses.
• Present a specific proposal to the bank, with alternatives, both verbally or in writing. If you do not know what to propose, you might seek ideas from a non-profit housing counselor, a real estate attorney, CPA, or other qualified source. A typical request might suggest lengthening the loan, making it fixed not adjustable, and lowering the interest rate. If your proposal will lower your payment by $500 per month, you need to show how this will help you catch up and be on time in the future. What will sweeten the pot if you are way behind is to present least a month's payment.
Good preparation will increase the chance that the lender will accept your proposal.. Make sure to discuss with the lender representative how the new agreement will affect your credit record. Your goal is to have your new payments reported to the credit bureau as "Pays as agreed, " but make sure you understand the credit ramifications before you finalize the terms.
If you are at risk of foreclosure, you aren't in a hopeless situation, but no question about it, time is of the essence. As soon as you realize you are headed for trouble, it's time to develop a game plan. Your strategy will vary according to what you want to do and what you can do. If you realize that you can't afford the home and the costs to maintain it, a quick sale of your Las Vegas home might be the best course of action.
In these times, that may sound like a cosmic joke, but even now, sellers have control over three things: pricing, marketing, and condition. The price of control is abandoning the thought that you will necessarily be able get top dollar for the home. You must keep in mind that the goal is to unload the house so you can avoid foreclosure and move on.
Regardless of what you paid for your home, its fair market value has undoubtedly declined. Forget about the original price and contact a real estate agent who can show you "neighborhood comps" - records of what other homes in your neighborhood have sold for. Be prepared to knock your asking price down at least 10% to give your home a competitive edge over your fellow seller. If this puts you below what you owe, the reality is this: new buyers will not pay more than the current market value just because you need to get a certain price. This means you may have to approach your lender for a short sale application and see how low a price they might be willing to accept.
Given that you are selling due to a financial issue, you may not have the money or even the time for major remodeling. Focus on cleaning the place up, painting, and doing the little things that could detract form the home in the eyes of buyers. Get the commitment of every family member to keep the house neat during the selling process. Your Realtor® will help you make the choices you may need to make the home look its best on a limited budget.
Though your agent will market the home as part of his job, you should make sure your home is heavily marketed on the internet. Sites like Craigslist, FrontDoor.com, Yahoo, Zillow, Trulia, and Realtor.com offer free or low cost listing options, plus syndicate to other sites. Upwards of 80% of potential homebuyers pre-shop for home online, so your home needs to be there - and be there with lots of pictures that show your home in its best light. You may still be working on a fixing a few minor things, but clear pictures of clutter-free rooms can whet the appetites of potential home buyers searching for a home at your price point.
Hopefully, a buyer will appear with good credit and a fast timeline like your own. If the buyer is having trouble with the purchase, your agent can help you offer incentives, such as offering to help with closing costs. In some cases, the new buyer can assume your loan (with the lender's ok) or lease with option to buy.
Need to sell your home fast to prevent foreclosure? Yonas Woldu can help you make ths happen.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
With foreclosure rates increasing across the nation and here in the Las Vegas valley, more and more homeowners are receiving notices for the sheriff's sale. The conventional advice from legal experts has been to immediately pack up and move, but that is changing. Recently, we've been seeing a new phenomenon coined "bank walkaways," when the bank begins the foreclosure process, then walks away with no word or explanation, leaving the homeowners wondering what happens next. And legal experts aren't sure, either.
Posted by 
As we're headed into fall, and the real estate market moves toward its traditional slump at year's end, those in-the-know are speculating the strength of the Vegas market from October through December. What might be a wild card this year, and into next, is the $8,000 tax credit currently offered to first time buyers (or those that haven't owned a home in the past three years) that expires on November 30th. This tax credit is being debated by Congress for extension into 2010, and analysts are saying it will likely be extended. What is even more encouraging, is that the tax credit may also be offered to other buyers who have owned a home, further stimulating the real estate market. All eyes are on Washington.
In the mortgage mess we are still working out of, there is plenty of blame to go around - including to appraisers who overvalued Las Vegas property to support their friends in the mortgage industry. To make the process more impartial and remove pressure on appraisers to aim for a specific value, new regulations went into effect on May 1, 2009 to distance all the parties in a loan transaction.
Las Vegas is a gambling town but even the pros know you shouldn't push your luck- especially with a sure thing. The 
If you're a Las Vegas homeowner with financial problems that you expect to overcome soon, you may have a different agenda than someone who sees selling their home as the only way to escape foreclosure. Assuming your home is one you like, want to keep, and can afford, talking with your lender in time of need may reveal a number of options. Foreclosure is costly for lenders, so if you approach them in a timely manner, they may be willing to provide some temporary relief or "workout" for the problem.
If you are at risk of foreclosure, you aren't in a hopeless situation, but no question about it, time is of the essence. As soon as you realize you are headed for trouble, it's time to develop a game plan. Your strategy will vary according to what you want to do and what you can do. If you realize that you can't afford the home and the costs to maintain it, a quick sale of your Las Vegas home might be the best course of action. 
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