N&Y Team Greater Las Vegas Real Properties Blog

Take Your Las Vegas Foreclosure Tour, Then Call a Professional

Sat, 07 Nov 2009 10:44:49 -0600

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.

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

Want to Buy A Las Vegas Home With Less Than 20% Down? Be Sure You Can Get PMI

Fri, 30 Oct 2009 16:08:47 -0500

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.

Don't Rush To Move Even If You're Facing Foreclosure In Your Las Vegas Home

Thu, 29 Oct 2009 22:32:54 -0500

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.

Extension of Homebuyer Tax Credit Could Benefit Las Vegas Buyers

Thu, 22 Oct 2009 12:17:41 -0500

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.

First Time Homebuyers Compete vs. Investors in Las Vegas Residential Market

Sun, 13 Sep 2009 10:33:53 -0500

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 is the 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.

If Three Years have Passed, $8,000 Can Be Yours For Your Las Vegas Home

Sun, 30 Aug 2009 00:01:21 -0500

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.

Appraising the Impact of HVCC in Las Vegas Real Estate Transactions

Tue, 18 Aug 2009 15:35:24 -0500

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.

Yonas Woldu is ready to help you find an affordable house in Las Vegas, Green Valley, or other areas of Clark County and help you navigate the system. If you are looking to purchase a home, including a short sale or bank owned home, visit Vegas Real Property website and my new AskYonas website. If you want to claim the $8,000 new homebuyer tax credit, call YOnas today to assure that your loan will close in time.

Don't Gamble with the $8,000 Tax Credit on Your Las Vegas Home by Waiting Too Long

Thu, 13 Aug 2009 18:51:08 -0500

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

Yonas Woldu is ready to help you claim your prize. He can help you find an affordable house in Las Vegas, Green Valley, or other areas of Clark Countyand help you navigate the system. If you are looking to purchase a home, including a short sale or bank owned home, visit Vegas Real Property website and my new AskYonas website.

For every real estate problem, I have a solution. Now let's make it happen.

Working It Out With Your Las Vegas Lender

Tue, 28 Jul 2009 20:03:31 -0500

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.

Have a complex real estate situation? Yonas Woldu can help. For help with selling or buying property in Las Vegas, Green Valley, or other areas of Clark County, contact Yonas Woldu at Prudential Americana Group. I can help you find alternatives. If you are looking to purchase a short sale or bank owned home, visit Vegas Real Property website and my new AskYonas website.

For every real estate problem, I have a solution. Now let's make it happen.

Facing Foreclosure? A Game Plan for Selling Your Las Vegas Home Quickly

Thu, 23 Jul 2009 07:19:17 -0500

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.

N & Y Team

Yonas Woldu Direct: (702) 236-8997

Fax: 702-898-9738

www.VegasRealProperty.com

www.askyonas.com

Click here to get a market snapshot of your home value!

Hope Floats: Expanded Making Home Affordable Program Aimed at Underwater Las Vegas Homeowners

Tue, 14 Jul 2009 21:36:00 -0500

If you've read our blog the last few months, you know that we have always said that Obama's housing programs were fluid programs that would expand to help more homeowners. Lo and behold, on July 2, HUD Secretary Shaun Donovan announced that homeowners who are 125% underwater on their mortgages would now qualify for Making Home Affordable refinancing programs. Prior to the announcement, mailings about the program have been sent to over 1 million borrowers who might qualify for refinancing; to date 200,000 trial loan modifications have been offered. Yet, housing values have tanked so low that many homeowners have been unable to get help under the program - especially in very hard hit areas like Nevada.

Exercising a flair for the dramatic, Donavan made the announcement between two homes on Pine Valley Drive in Las Vegas that showed great contrast. Claiming that Nevada is "ground zero" for foreclosure activity, he was flanked on one side by a well kept home with a beautiful lawn and on the other, by a vacant home with a dried out lawn and foreclosure sign. Donovan underscored the reality of foreclosures. Despite how personally devastating they can be to people who undergo them, they also affect neighborhoods and whole cities especially when several homes on a street or neighborhood are foreclosed on, which can give a blighted look to the area. You could go on to say that widespread foreclosures bring an ever-growing black cloud over the neighborhood that influences opinions about the place as property values are dropping. The premise of expanding the program is that more access to refinancing options will reverse the trend.

The increase in the plan limit, formerly 105%, is expected to help some of the 67% of Nevada homeowners whose mortgage balance exceeds their home's value. This means someone with a $375,000 mortgage would be eligible of the program is the home is still worth $300,000.

In Las Vegas, of course, the questions are: how many people are 125% underwater or less? Since being current is a requirement for the government refinancing program, how many people are have not been over 30 days late on their underwater mortgages? How many underwater homeowners have their loans not covered by Fannie Mae or Freddie Mac, the only loans eligible for refinancing under making Home Affordable?

The HUD Secretary did not offer answers to these questions but went on to promise that his department was searching for the facts. HUD Foreclosure Rapid Response Teams would be deployed within two weeks to assess needs in the Las Vegas zip codes based on delinquency rates. The group would listen to neighborhood groups who are familiar with the local housing scene, including lenders, housing counseling agencies, and citizens, and develop specialized recommendations, which another HUD team would implement. Since HUD has received an increasing number of housing discrimination complaints as the housing crisis has escalated, Fair Housing counselors would join the Las Vegas office to educate the public, receive and investigate complaints, and monitor Section 8 vouchers and public housing units.

Even though the government has not yet released a swooping program that will benefit all underwater homeowners, the new program is coming closer - especially when viewed in conjunction with the HUD Foreclosure Rapid Response Team initiative.

http://www.makinghomeaffordable.com/pr_07012009.html

Need help to prevent foreclosure? For more information on the Home Affordable Refinance Program, visit makinghomeaffordable.gov or call 1-888-995-HOPE. The N&Y Team can help you find the right direction.

N & Y Team

Nebi Adhanom Direct: (702) 277-9922

Yonas Woldu Direct: (702) 236-8997

Fax: 702-898-9738

www.VegasRealProperty.com

Click here to get a market snapshot of your home value!

Should Realtors® Encourage Las Vegas Homeowners to Pursue Desparate Measures in Desparate Times?

Mon, 06 Jul 2009 06:15:49 -0500

When we read the current blog by Brian Tutas on whether walking away from an underwater home was morally wrong or good financial sense, we couldn't help but reflect on the same research on this topic that he referenced. Researchers from Northwestern and the University of Chicago studied housing in Massachusetts and came to the unsurprising result that the more a homeowner is drowning in an upside down mortgage, the more likely he is to default.

It seems that 15% is the magic number. When the housing value is 15% less than the amount of the mortgage, people start walking. Even if they can afford to pay the mortgage, 17% would leave if the difference was 50%. People under 35 and over 65 don't see this as moral issue. The researchers found different attitudes about this based on race, educational level, and region. They concluded that as more people defaulted, the morality issue would diminish.

In Las Vegas, this is a big issue as 1 in 64 homes is underwater. For a realtor®, the question becomes: what role do we take in influencing in underwater homeowners to leave their homes?

We work with many people a sneeze away from foreclosure. We carefully counsel them about the choices they have available to them to avoid foreclosure. We make sure they know that foreclosure alternatives will have credit consequences but may relieve their stress and allow them to move on to the next stage of their lives feeling more in control of the situation. If the subject of walking away comes up, we discuss the consequences, but don't direct the choice they make.

Like all realtors®, we have a dilemma. Selling homes is linked with the ability to have the purchase financed. Lenders expect borrowers to enter into mortgage agreements in good faith. It is true that there was a lack of good faith in many quarters over the last years, but "good faith" - where the lender lends and the borrower promises to pay back the loan - is a necessary component of the system.

Desperate times might call for desperate measures. Whether some people were greedy or a victim of circumstances is immaterial. Personally, we see the need for a solution that will dry up the underwater mortgage issue and feel minimal sympathy for the banks. The question remains, is it our job as realtors® to encourage walking away even if the numbers add up to that solution?

N & Y Team

Nebi Adhanom Direct: (702) 277-9922

Yonas Woldu Direct: (702) 236-8997

Fax: 702-898-9738

www.VegasRealProperty.com

Click here to get a market snapshot of your home value!

Citizens of Las Vegas: Celebrate Your Economic Freedom

Sat, 04 Jul 2009 10:09:19 -0500

Today is July 4^th, a great day in American history that marks the day some 233 year ago the U.S. broke free from England to become a separate country. The original settlers and great waves of subsequent immigrants have come here in pursuit of economic, political, social, and religious freedom. This still remains true. As we have noted in previous blogs about foreign investorswho pursue opportunities to buy homes in Las Vegas, California, Florida, Arizona, and other areas, the United States is regarded as politically stable and despite current economic turmoil, offers good long term investment potential.

Independence Day is a good time to reflect on the economic freedoms that citizens and other residents enjoy here from a real estate perspective.

Freedom to own your own home. Home ownership is the American dream. Today it is even more possible given the affordability of homes in the current market. A few years ago, some would-be homeowners got caught up in questionable "creative" financing schemes that put them in homes they quickly found they could not afford. As inflated housing prices abruptly came down to earth, housing has once again come within range of families. Today in Las Vegas, the median home price is $125,000. For this price, you cannot buy the Taj Mahal, but you can buy a good, nice looking home for your family as long as you have a steady job and decent credit.

Freedom to prosper. Owning rental property is attainable to people who want to buy a duplex and rent out the second floor or buy several homes to fix up and resell. There will always be people who by choice or by circumstance will need rental housing. At the moment, Las Vegas offers a wide selection of properties for investors to buy, renovate, and rent out and later resell. Many of the properties are bank owned and available at prices that may be below market value. Some investors who caught up in the speculation a few years ago, but properly financed investment property offers an opportunity to make money after spending some to buy the property and make it appealing to renters.

Freedom from economic tyranny. Some Nevada homeowners are currently in economic bondage due to excessive debt and spiraling mortgage payments on property that has lost its value. As a result, many have lost their homes or currently face foreclosure. Though this is a complex situation with no one-size-fits-all solution, there is help available to free homeowners from this vicious cycle. Some might find help from Federal programs like Making Home Affordable, by calling the Hope Now Hotline, or by working out other types of loan modification with their lender. Other legal remedies such as short sale or deed in lieu of foreclosure might be a better alternative than foreclosure or bankruptcy to many homeowners.

Whether you are looking to buy a home for your family or investment property to ensure your future or whether you need help to prevent foreclosure, the N&Y Team can help you exercise your economic freedom.

N & Y Team

Nebi Adhanom Direct: (702) 277-9922

Yonas Woldu Direct: (702) 236-8997

Fax: 702-898-9738

www.VegasRealProperty.com

P.S. We value and appreciate your referrals. As always, we promise to deliver such outstanding service that your family and friends will thank YOU for referring them to us. Give us a call if you know someone who needs a dedicated real estate consultant for life!

Bouncing Back from Las Vegas Housing Woes

Tue, 30 Jun 2009 18:46:42 -0500

"Life is what happens while you're making other plans." Richard Dreyfuss in Mr. Holland's Opus

No one moves into a home planning on foreclosure. Even if 9 out of 10 people would have told you the big house in Las Vegas was too expensive for you or that you were making a bad decision when you bought it, you probably would have sided with number 10 and thought things would work out. If your decision did prove unwise, you lost your job, you got sick, or your rich wife left you, you might have to resort to foreclosure or short sale. If your bad luck is temporary, you might miss a few mortgage payments before bouncing back.

People are resilient. If any of these things happen to you, you can recover, especially if your family and your health are intact. However, there are credit, legal, and tax consequences to any action you take once you are liable for the mortgage payment.

If you go through foreclosure or give the house back to the bank with a deed in lieu....

• Your credit report will take a hit of 250-280 points.

• You'll have to be on time with all payments for about three years to qualify for another mortgage with good interest rates and terms.

• Your lender could try to collect what they lost but probably won't.

• The relief you got could be taxable, though that is off the table through this year, thanks to the Mortgage Forgiveness Debt Relief Act of 2007.

• If you used a 1031 tax exchange and bought your home or less than two years ago or using tax-deferred capital gains, you might have to pay capital gains.

If your bank agrees to a short sale...

• Your credit report will take a serious hit, thought not as much as if you did a foreclosure.

• You will have to be on time with payments for 18 months in order to get decent mortgage rates.

• Your debts from mortgage and lien holders on the house will disappear, without fear of a lawsuit to recover any shortfall.

• As noted with foreclosure, you won't be taxed on forgiven debt through the end of 2009.

• There could potentially be the same issue with capital gains and 1031 exchanges so see your CPA if this pertains to you.

If you are late on payments....

• If your payment is made within 30 days of the due date, you won't be reported to the credit bureau though you may have to pay a late fee.

• A payment that is 30 days late can lower your credit score from 50-100 points.

• If you miss a payment but then start making payments without making arrangements for the one you missed, the missed one will be considered 30, 60, and 90 days late and the late fees will mount as well.

• Even one late payment in the past 12 months can disqualify you from refinancing and subject you to higher rates.

• Late payments will show up on your credit report for seven years though the weight fades over time.

If you find it increasingly difficult to make your payments on time, it's time to do some thinking and some careful planning. Is your problem temporary? Could you pick up an extra job or shift your spending priorities so you can keep up with your mortgage? Have things changed to make the mortgage harder to pay than when you signed up for it? Do you want to stay in your current home?

Before getting into a cycle of late payments, talk to your lender about options that might give you relief. Seek help from one of the many free resources in Nevada - including the N&Y Team. Whether you need to discuss selling your home before your finances reach crisis proportions or whether you are trying to stop imminent foreclosure, we can help you reach a solution you can live with.

N & Y Team

Nebi Adhanom Direct: (702) 277-9922

Yonas Woldu Direct: (702) 236-8997

Fax: 702-898-9738

www.VegasRealProperty.com

Click here to get a market snapshot of your home value!

When You Sell Your Las Vegas Home, Don't Steal the Parts

Sat, 27 Jun 2009 09:39:51 -0500

In the wacky world of short sales and REOs, finding the home trashed by former owners or vandals calls for new levels of salesmanship. The foreclosure crisis has resulted in a rash of trashed, smashed, and stripped-bare homes for the next set of owners to deal with. Many homeowners, strapped for cash, have ripped out counters, appliances, light fixtures, or cabinets to sell and may have intentionally damaged what's left, out of anger. Vandals have often come into to finish the job of gutting the home of anything of value. It takes a buyer with vision and sometimes deep pockets to overlook the damage and see a liveable home underneath. It takes a real estate agent with the ability to help buyers see past the missing parts.

There was a time when people had more common sense and even in the absence of that, an innate sense of what you should be packing up when you move from your home. Whether you are going by choice or moving after foreclosure, the same rules apply.

Even people who are not moving because of foreclosure have liberalized the definition of what should go, what should stay. In the old days, the rule was basic: anything that is attached to the house should stay.

This would include:

Doors and windows
Furnaces and air conditioning unit
Floor, ceilings, and walls
Electrical wiring
Counters tops and cabinets
Sink drains, and faucets
Built in appliances
Plumbing fixtures, including toilets, tub, and pipes
Built in medicine cabinets, sinks, and showers
Built in shelving and bookcases
Landscaping, fences, built in pools and spas

You can hardly read this list without alternativeely snickering and shaking your head. Doors and windows taken? Walls? Unfortunately, we are too used to homes being gutted for copper piping to react much to that.

If you as a seller want a favorite light fixture, you should be swap it with another suitable fixture before buyers come in. Make sure to tell your agent if free standing appliances, custom-made drapes, or other appointments are included in the house, available for sale, or going with the seller; these exclusions should be noted in the contract so there is no misunderstanding.

On the other hand, owners can take

Furnishings and personal property
Mirrors
Arts work and photographs
Pets and their things, including dog house, aquariums, or bird cages
Refrigerators, televisions, computers, stereos
Throw and area rugs
Indoor plants
Portable fans and heaters.

Maybe some people think they are only getting back at the bank, so don't care about the condition of the home. If sellers take more than they should or if they damage the home and take the bathtub and copper pipes, they or their insurance companies can face consequences Banks often file claims against the home owners' insurance of former owners who have damaged the home - or come after the former owners.

Regardless of why you're moving, the last thing you want following you to your new home is a lawsuit or an angry insurance company. Even if moving is not your choice, do the right (and LEGAL) thing. Leave your home intact for the next owner. You may not care about the bank, but the next owner is a person just like you who only wants to be a homeowner.

N & Y Team

Nebi Adhanom Direct: (702) 277-9922

Yonas Woldu Direct: (702) 236-8997

Fax: 702-898-9738

www.VegasRealProperty.com

Click here to get a market snapshot of your home value!

New Report Challenges Thinking About Las Vegas Foreclosures

Thu, 25 Jun 2009 10:01:25 -0500

Life goes on for Las Vegas residents. Another month, another set of depressing foreclosure figures in the midst of some glimmers of hope in the housing market. Though foreclosures decreased in the last months, Nevada has the nation's highest foreclosure rate. This rate is up 111% since April, 2008. Properties in Nevada, Florida, California, and Arizona, along with six more high foreclosure states, account for 75% of foreclosures in the country. On a local level, Las Vegas has the highest foreclosure rate of any metropolitan area with a population over 200,000 - in 56 homes received a foreclosure filing in April.

Recently, the Nevada Association of Realtors interviewed a sample of participants who have experienced foreclosure since 2007. The study noted the fact that there was little data available on people who experienced foreclosure. Many foreclosed homeowners do not have a current phone number on file; in Nevada, foreclosure can happened quickly so many in this situation moved quickly as well, which made it even harder to track a last known phone number. Nonetheless, the 307 interviewed provide some insight into the crisis.

We will present the raw data from the report another time but the conclusions advanced in the report about who was likely to experience foreclosure are reveal no magic answer about who was likely to do so; basically, anyone from any economic, political, ethnic, or educational class could suffer foreclosure if something changed in their life. The report referred to this as "Plus One Factor," a change in income, debt relationship that made paying the mortgage out of reach. Some respondents indicated that they may have contributed to the problem by getting into loans for homes they could not afford, but the group showed a poor understanding of the responsibilities of home ownership, the types of loan they had, or the options available to them to avert foreclosure.

The report challenges two major assumptions that form the basis of public thinking about the foreclosure crisis. People who go through foreclosure are often considered greedy and/or naïve. The fact is, most people interviewed did not knowingly borrow more than they could pay, but something changed. It's easy to assume that the change is due to job loss, but often unexpected medical bills, divorces, caring for a loved one, or an increase in dependents in the home, became the Plus One factor. Some people might not have read the fine print on the contracts or thought out their purchase thoroughly enough, but respondents were from all income levels and educational backgrounds have been caught up in the mess.

If the conclusions of this report are representative of what nationwide results would be, were a broader study conducted, this means that a lot of the "moral hazard" arguments advanced against the new programs offered foreclosed homeowners are groundless. Most people personally know of someone who scammed the system and may be getting an "undeserved" break; the media always picks up on the part time daycare worker who bought a $500,000 home. A few cases might not represent the true picture that would emerge if a broader study were done.

Data from other sources might support an argument that the most likely foreclosure "victims" are poorer and more likely to be black or Hispanic; this study does not show that foreclosed homeowners are any more likely to be trapped in bad loan or more unlikely to seek help, based on race, ethnicity, or income. This means that information on how to avoid foreclosure needs to be widely disseminated.

The report does not probe underwater mortgages caused by falling home values.

The whole Face of Foreclosure Report is available on the Nevada Association of Realtors' website.

Need foreclosure alternatives? Want to buy distressed property? Contact us for concrete help.

N & Y Team

Nebi Adhanom Direct: (702) 277-9922

Yonas Woldu Direct: (702) 236-8997

Fax: 702-898-9738

www.VegasRealProperty.com

Click here to get a market snapshot of your home value!

Selling Affordable Clark County Homes to Healthy Homebuyers

Sun, 21 Jun 2009 16:02:35 -0500

At the same time that Nevada is again leading the pack in foreclosures, existing home sales have increased 68% through April of this year. Prices are down 43%. It's a good time for people to buy affordable housing. Now more than ever before, this a time for Realtors® to educate buyers as to what is affordable and to discern who is likely to be a "healthy" buyer vs. and "unhealthy" one. More foreclosures are on the way due to sometimes careless lending in the past; as Realtors®, we want sales that will result in long-term homeownership, not foreclosure in 12 -24 months.

According to Devin Reiss, Realtor® and president of the Home Builders' Research, a Las Vegas company, "The key to understanding the foreclosure crisis in Nevada is the ability to distinguish between a healthy and unhealthy homebuyer. In order to re-establish homeownership, we have to stabilize the market by avoiding situations with a high risk of foreclosure."

Healthy home buyers are well informed about what is involved in buying a home. They have a stable income and buy something that they can make on the payments on, even if circumstances change slightly. Even if they pay no more than they would to rent, home owners have additional costs for repairs, maintenance, lawn care, etc. They understand the seriousness of making the mortgage payments on time.

Unhealthy home buyers may cut it so close that a minor change in life events would render them unable to pay. Often, they enjoy a lifestyle above their means and may want a house to match. Many "unhealthy" buyers don't understand their financing or the seriousness of the commitment they make when buying a home.

No sales person, Realtors® included, want to turn away a person who wants to be a homeowner. In the past, we may have encouraged marginal buyers to stretch to buy homes they might not be able to afford for the long run. Now, a responsible agent may encourage an unprepared buyer to wait 6-12 months before buying, look at least costly properties, or know the questions to ask the lender.

As Reiss notes, "The Realtor is not providing the loan, so they don't ask all the personal finance questions, but they make you aware of the loan itself so you know what to ask your lender and you're not going into it in the dark. The quicker we can get back on our feet with healthy homebuyers moving into these foreclosed homes, the better off our communities and economy will be."

Nest time, we will share with you the results of an interesting study on foreclosures done by the national Association of Realtors. In the mean time, if you are in the market for an affordable home, we can help you. Looking to buy or sell your home? Call us!

N & Y Team

Nebi Adhanom Direct: (702) 277-9922

Yonas Woldu Direct: (702) 236-8997

Fax: 702-898-9738

www.VegasRealProperty.com

Click here to get a market snapshot of your home value!

Canadian Buyers Take a Chance on Las Vegas Housing

Sat, 20 Jun 2009 22:17:21 -0500

Continuous foreclosures may keep Realtors ' shelves stocked with houses in Las Vegas, but there are bidding wars on some homes and condos with foreign investors emerging victorious.

When the dollar is weak in world market and homes in the U.S. are plentiful, it's not surprising that property in the United States is a hot commodity among foreigners. Las Vegas and many other cities are seeing an influx of buyers from Canada, the UK, Spain, the Middle East, and the Far East. The buyers often come with cash (a good thing since they might have trouble being financed by many U.S. lenders) and a shopping list of properties.

According to David Michonski, former CEO of Coldwell Bankers International Realty, foreigners looking for a single family houses as personal homes or investment property are flocking here. "America is on sale!"and value-minded foreigner come here for cheap housing, not politically unstable third world countries.

This is particularly true in Las Vegas, where the median housing price is currently about $145,000. Many of these homes previously sold for $350,000-400,000. New homes are running $219,000.

Las Vegas is particularly attractive to Canadians. Canadians view U.S. property as affordable, though they have traditionally preferred Phoenix over Las Vegas due to cheaper housing prices and better weather. What tips the scales of many buyers toward Vegas for many Canadians who seek second homes is the casinos.

The fire sale prices on some homes and condos encourage mass buying for investment. These investors believe the Las Vegas housing market has bottomed out and expect the housing market to rebound in five to ten years. At a time when savings accounts are paying 3 or 4 percent in Canada, investors can yield 8-18% by renting out their bargain homes until it time to sell them.

This competition is taking some affordable housing out of the hands of Las Vegas homeowners who seek affordable housing. Given the scope of the housing problem in Las Vegas, it's hard to complain,

Looking to buy or sell your home? Call us!

N & Y Team

Nebi Adhanom Direct: (702) 277-9922

Yonas Woldu Direct: (702) 236-8997

Fax: 702-898-9738

www.VegasRealProperty.com

Click here to get a market snapshot of your home value!

Tips for Smart Las Vegas Real Estate Investing

Sat, 13 Jun 2009 17:17:45 -0500

Las Vegas may have its problems with its high foreclosure rates, falling house prices, and lots of unsold homes, but when people think Vegas, they think good times and optimism. The city has a vibrant economy that continues to pull in new residents who want to settle here. Tourism may be off a bit with the current economic slump, but the attractions are compelling, the scenery is beautiful, and recreational opportunities plentiful.

Since this is such a desirable area, Las Vegas is great place to buy a foreclosure or bank-owned home whether you want a home for yourself or for an investment. The city has always drawn investors; at the moment, the large number of vacant and soon-to-be vacant homes offer unusual values to people who are here at the right time with money in hand.

What should you keep in mind when you are trying to find the right investment home?

Find a neighborhood where there's a demand for rentals or later resale. Even if the neighborhood or the house itself isn't what you'd pick for yourself, the location might be a great if you're planning on renting it or reselling it. Beware if there are too many foreclosures in the neighborhood, as eventually you might be competing for tenants. Make sure you know the neighborhood so you have an idea of the types of problems you might confront as a landlord.

Evaluate the total cost, including the needed repairs. If you find a place that's a real disaster, ask yourself if the cost of the rehabbed home will be in line with neighborhood market values. If not, keep looking.

Check out any liens on the property and any back taxes. You want to make sure you are buying the first mortgage, not a second or line of credit. You want to make sure you own the home and then will have to clear up the back taxes.

In parts of Las Vegas, there's a bidding war going on so don't overpay. Again, you don't want to end up with a property that's overpriced for market. If you are fighting for a house you want for yourself, you might bend this rule a bit and pay a little more, but if you are buying investment property, there are probably other places that would serve your purposes.

See what flies in terms of rental prices. The ideal is to rent the property for 1% of the purchase price, a 12% return, to allow for future repairs. Many areas do not support this type of rent.

Investing can be lucrative, but you'll need a good Realtor® to show you the best properties and help you through the process. We can help. For the best in Las Vegas housing and the news on short sale and bank owned home opportunities, contact:

N & Y Team

Nebi Adhanom Direct: (702) 277-9922

Yonas Woldu Direct: (702) 236-8997

Fax: 702-898-9738

www.VegasRealProperty.com

Click here to get a market snapshot of your home value!

Walk Away from Your Las Vegas Home? It's a Long Walk Back

Thu, 11 Jun 2009 22:22:15 -0500

If your home is underwater or otherwise in distress, your first impulse might be to swim to shore and walkaway. You mail your keys to the bank and your problems are all over, right?

Unfortunately, "jungle mail" is not an acceptable way to end a contract in the eyes of your lender. The bank will seize the home and formally foreclose on it, which will have a long term impact on your credit. This is not the same thing as a deed-in-lieu of foreclosure, where the bank agrees to take the home back - a process that is less costly for the banks as they can bypass foreclosure proceedings and that may less stressful for homeowners, thought their credit takes as big a hit.

Walking away is tempting for many homeowners who see no end in sight for payments on homes that have lost value. Perhaps they put little or nothing down on the homes back in the days when mortgages were offered with few requirements that they have any financial stake in the home. Other homeowners might feel they were deceptively locked into loans they could not afford on homes 10 times their annual salaries.

The process is made easily these days by companies such as You Walk Away, which will guide people through the walk away process for $995. The company does not promise anyone that they will save their home, but offers them a game plan for abandoning the home. They first offer a "protection kit." They counsel the homeowner to see if there are other options. They will contact the lender to request that they stop harassing the homeowner. They put clients in touch with a lawyer and an accountant to make them aware of their options. They tell people how long they will be able to stay in their homes rent free before the lender evicts them.

You Walk Away started in California, where it has sold its services to over 1,000 people. Now, the company also operates in high foreclosure states Arizona, Colorado, Connecticut, Florida, Illinois, Nevada, New York,, Michigan, Oregon, and Washington.

The company claims it is not encouraging irresponsible behavior or portraying walking away as an ideal solution. The owners offer a service to fix a problem that is already there. Ironically, the services offered might actually often peace of mind and a sense of closure to troubled homeowners who seek an end to their nightmare.

Walking away is a drastic step that will affect credit scores - and the ability to get new credit at reasonable rates for years to come. There is a whole range of options available to people in trouble if you act early enough. Before you give up and allow your home to fall in to foreclosure or determine that jingle mail is the way out of your dilemma, seek help from a reputable housing counselor and become familiar with all your options. The State of Nevada foreclosure website offers a game plan at no charge.

At Prudential Americana, the N & Y team is ready to help you as well. Need a frank discussion about your options if you are in trouble? Be assured that we will do our best to help you avoid foreclosure. For the best in Las Vegas housing and the news on short sale and bank owned home opportunities, contact:

N & Y Team

Nebi Adhanom Direct: (702) 277-9922

Yonas Woldu Direct: (702) 236-8997

Fax: 702-898-9738

www.VegasRealProperty.com

Click here to get a market snapshot of your home value!

They're Back - Investors Reclaim Las Vegas

Fri, 05 Jun 2009 18:16:39 -0500

In the boom days of Las Vegas housing, a mere three to five years ago, speculators bought a lot of property and pushed housing prices off the charts. Along with homeowners, many speculators who did not "flip and run" were caught up in the mortgage mess based on subprime lending, liar loans, and creative financing.

Since then, housing prices have fallen at least 40% and the market is flooded with foreclosed and bank owned homes. Sales are heating up, as buyers are taking advantage of the good deals. Once again, major consumers of the bargain homes are investors, often from out of state and often from foreign countries. Most come with cash and are ready to buy multiple properties.

Between May, 2007 - May, 2008, foreign nationals bought up 150,000 - 190,000 homes in Las Vegas. Mexicans and Canadians are the largest group represented, but some buyers came from as far away as Britain, China, and the Philippines. Foreign interest depends on the strength of the dollar; at the moment, the dollar is strengthening against the Canadian dollar, so Canadian sales are falling off. British sales are increasing given the strength of the pound vs. the U.S. Dollar. According to Justin Figgins of Rightmore Overseas, UK buyers do 190,000 Internet searches per month for U.S. property.

The investors are taking the homes off the market - sometimes after a bidding war. Realtors report multiple offers on the same property, from rival investors and potential homeowners. Since there are over 30,000 vacant homes in Las Vegas, the inventory reduction is a good thing.

There are downsides, too. To outsiders, the Las Vegas area may look rich and glamorous, but many residents work in area casinos and other tourist attractions for modest wages supplemented by tips. With home prices down, this group has a chance to become homeowners but are losing out to well-financed foreigners. Once their bid is accepted, FHA financing makes homeownership for them feasible - but with so much competition, having an offer accepted is the trick.

Las Vegas residents who have lost their homes need affordable rentals in the area. Assuming that the new pack of investors anticipate renting the properties, will the rents be affordable? Or will many investors just want to "flip and run," driving prices up again?

Looking to buy in La Vegas? For the best in Las Vegas housing and the news on short sale and bank owned home opportunities, contact:

N & Y Team

Nebi Adhanom Direct: (702) 277-9922

Yonas Woldu Direct: (702) 236-8997

Fax: 702-898-9738

www.VegasRealProperty.com

Click here to get a market snapshot of your home value!

High Sales Aside, Foreclosure Shoe Continues to Drop in Las Vegas

Wed, 03 Jun 2009 20:09:02 -0500

Despite good news on the Las Vegas housing front about falling sales prices and increasing sales volume, foreclosure rates are still among the highest in the nation. Since one in eight Nevada homeowners (11.75%) is currently behind on their payments, a landslide of future foreclosures is likely.

Many banks as well as Fannie Mae and Freddie Mac suspended foreclosures while the Obama housing rescue plan was under development. The moratorium ended in March, so pre-foreclosure filings jumped to 11,593 in March from 7,635 the previous month. Many properties remained backed up in the system but will be foreclosed on soon.

Some delinquency is tied to job loss or cut backs, but much is a byproduct of many people facing the situation of owing much more than the home is worth. (Las Vegas home values have fallen 40%.) Some people have bought smaller homes while their credit was still good and let the original home go into foreclosure. This buy-and-bail technique is harder to pull off now with stricter lending requirements and has negative consequences on a person's credit report. Many others are struggling to make the payment and hoping for a creative solution that will pull them out from being underwater. In the absence of that, many homes could slide into foreclosure.

If you are a homeowner at risk of foreclosure, now is the time to act to avoid it. Even if you don't want to stay in your home, you should take steps to be in control of the future for yourself and your family. Lenders will start calling you once your payment is 30 days late, so communicate with them. They may be able to help you by modifying your loan or even suspending the payments for a time. So what are the options to avoid foreclosure?

Loan Modification: Changes the terms of your loan to extend the terms, lowers the interest rate, or in some cases, lowers the principle. The President's Making Home Affordable program (as presently set up) may help you if you are not more than 105% underwater. Banks are jumping on the bandwagon and offering this type of program too. This is a good option if you want to keep your home and you have the income to make the payments.

Repayment: Gives you the chance to make a partial payment on delinquent payments and catch up the rest in the future. This option is workable if you experience an emergency or a brief job loss, where you will be able to catch up once things have returned to normal. Lenders expect you to be on time in the future.

Forbearance: Suspends your payments due to a disaster or job loss, sometimes for up to six months. Once you start paying again, you are expected to catch up what you missed, usually within 12 -18 months.

Partial Claim: On FHA loans, HUD will advance the payments in return for a promissory note due when the house is sold or the mortgage is paid off.

Chapter 13 Bankruptcy: May reduce or eliminate some other obligations but leave your loan unchanged while permitting delinquent amounts to be repaid over time.

Deed in Lieu of Foreclosure: You give your home back to the bank.

Short Sale: Lender agrees to take less than what is owed on the home. New additions to the President's plan offer incentives to lenders who facilitate short sales and deed-in-lieu. These add-ons may help underwater homeowners.

Need a frank discussion about your options if you are in trouble? Be assured that we will do our best to help you avoid foreclosure. For the best in Las Vegas housing and the news on short sale and bank owned home opportunities, contact:

N & Y Team

Nebi Adhanom Direct: (702) 277-9922

Yonas Woldu Direct: (702) 236-8997

Fax: 702-898-9738

www.VegasRealProperty.com

Click here to get a market snapshot of your home value!

Back to the Future in Las Vegas Housing Prices

Sun, 31 May 2009 22:06:57 -0500

Whoever said you could not go back in time was not trying to buy a house in Las Vegas in the Spring of 2009. As of April, 2009, the median price of homes was at 1998 levels - $125,000. Home Builders Research, a local firm, estimated this figure at $130,000 - still a sharp contrast to the median price of $275,000 as recently as February, 2007.

What is pulling the prices down are foreclosures, which sell for an average $115,000 and comprised 62% of the market in April. Without the foreclosures, the median price would hover around $145,000, per Sales Traq figures. High-end home sales are not pulling up the averages, as these homes aren't moving. Jumbo mortgages are hard to get these days, due to stiffer credit requirements.

Not surprisingly, the low prices have greatly reduced the foreclosure bargain homes so that right now, fewer than 15,000 remain in inventory in Greater Las Vegas. Many more will be hitting the market after the latest round of foreclosures, but they aren't there yet. Homes under $200,000 are in just great demand that first-time homebuyers are bidding against investors to snatch them up.

This puts first-time homebuyers in an interesting position that underscores the need for a skilled Realtor® to be in the mix from the start when competing for homes. In a bidding situation, many investors are coming to the table with cash in hand and with a good idea of what the home needs to be rehabbed and resold at a profit. An inexperienced buyer might try to outbid the investor, only to find himself paying too much for a house that needs more than what he can afford to do, even with the help of a 203k loan. A good Realtor® should be able to assist in the negotiation process and tell the buyer when to move on to another property.

If the buyer is unable to find a bargain home, the Realtor® can help him find other options still within his range of affordability and maybe within a wider scope of communities than where he was looking. Areas like Summerlin, Green Valley, and other southwest areas attract investors who anticipate quick turnover later. Buyers can experience the "buyer's market" climate by looking at beautiful value-priced property elsewhere in the area.

If you are looking for a Realtor® to help you grab one of these incredible 1998 priced-values, look no further than the N&Y Team.

Be assured that we will help you with your financing questions. For the best in Las Vegas housing and the news on short sale and bank owned home opportunities, contact:

N & Y Team

Nebi Adhanom Direct: (702) 277-9922

Yonas Woldu Direct: (702) 236-8997

Fax: 702-898-9738

www.VegasRealProperty.com

Click here to get a market snapshot of your home value!

Las Vegas First Time Homebuyers: $8,000 Tax Credit Now - Sort Of

Sat, 30 May 2009 22:56:23 -0500

When HUD Secretary Shaun Donovan announced at a recent National Association of Realtors (NAR) Midyear Legislative Meeting and Trade Expo in mid-May that the $8,000 first time homebuyers credit could be used a down payment, the crowd went crazy. The NAR has$8000 long called for a credit that could be used at the down payment stage a spur to home sales. According to Donovan, buyers could in effect get their credit when they needed their down payment through a short-term bridge loan. Almost as soon as the word hit the street, it became apparent that Donovan was announcing a not-ready-for prime time program still in the development stage.

By May 29, the actual details of the program were unveiled. Buyers can still only get their tax credit by filing a tax return with the IRS, but state housing agencies and non-profits can "monetize" the credit so it can be applied to the down payment or closing costs. The money for the down payment would be in the form of a secondary loan. ML 0915 outlines the details of the program.

To assure that buyers have a personal stake in their home, they still must come up with a 3.5% downpayment on FHA deals, which can be supplemented with funds from parents, friends or employers,. Lenders can monetize amounts over the 3.5% so buyers can get a lower interest rate. With this transaction, the buyer can not receive any cash back from the transaction.

Will this new program help homeowners? The National Association of Home Builders is optimistic that the tax credit will spur 160,000 home sales - 101,000 from actual first buyers and 59,000 from existing homeowners who were able to buy another home because of the a first time buyer bought their home. Changes in the plan will help better plan their purchase since they know the funds from the credit will be available sooner. This should encourage prospective homeowners who are madly saving to buy that now is the time to make a move.

The problem, of course, is that buyers still have to come up with the first 3.5% - a substantial amount for some first time buyers. On a $230,000 home, 3.5% is still $8,050. If the program was written so HUD standards were been set aside for the time the credit will be in effect, it would be more helpful to buyers who were planning on putting down the minimum. For buyers who want to put more down, the program will be more helpful.

In this blog, we will keep you posted about Las Vegas agencies and non-profits who can help you get downpayment help within Federal guidelines. There are rules to this new program - don't let anyone convince you otherwise! It's important that you work through an approved funding source - not a scammer who will extract a big fee to help you.

Be assured that we will help you with your financing questions. For the best in Las Vegas housing and the news on short sale and bank owned home opportunities, contact:

N & Y Team

Nebi Adhanom Direct: (702) 277-9922

Yonas Woldu Direct: (702) 236-8997

Fax: 702-898-9738

www.VegasRealProperty.com

Click here to get a market snapshot of your home value!

Is an Unfinished Home a Good Bet in Las Vegas?

Sun, 24 May 2009 05:13:54 -0500

The building boom in Las Vegas seemed on target just a couple years ago, when 6,000 new residents a month streamed into the area. Now that the economy has slowed down, the number of new residents is down, and a steady supply of foreclosed and bank-owned property food the market, some of the new homes and condos remain unfinished. Often, the original builder went bankrupt.

The unfinished properties pose a challenge to both the new owners and to the communities where they stand. The Upfront Condominiums in North Las Vegas sold only eight out of 75 units before the builder went into foreclosure. Some of the buildings are partially complete, while the pool and clubhouse have never been opened. This is particular project may be bought by another developer and renamed. The risk is that the longer the buildings remain in a half competed state, the more risk there is of vandalism, dumping, squatting, and theft.

For potential homeowners, unfinished homes appear to be a great way to acquire a new home for less. Should you bet on one? This special situation in home buying poses special risks and requires special care. Some concerns are obvious, but some not. Finding a good real estate agent to help you through the process of finding the home, deciding if you want to buy an unfinished home vs. the many other homes available, and completing the transaction is essential.

First, you don't want to buy a new home that requires costly repairs from the get go. If the builder was in trouble when he started the home, he may have cut corners or done shoddy work that could lead to later problems. In addition, the home may appear to have survived the time between its start and the present time, but depending on how much exposure it had to the elements and the stage at which building was interrupted, it may have damage that will only be uncovered by an inspector or a building forensics engineer. If the foundation or the plywood or other wood products used throughout was subjected to the elements because construction was stopped early in the process, the home could be subject to leaks, deterioration, and mold - not an ideal housewarming present.

Finding financing can be challenging as an unfinished home is not eligible for a mortgage; a construction loan is necessary first. Unless you are competent (which usually means licensed) to do the work, hiring a contractor is a necessary step to convince the bank to finance the project.

Your contractor should take care of ascertaining that work is done in accordance with current building codes and obtain any additional permits. If things have changed since permits were first issued, some finished work may need to be redone.

You will also need liability and property insurance on the project, as well as title insurance. Given that you are considering buying property with a history there may be liability claims against the property if someone broke their leg when they tripped over unguarded construction materials, tax liens, or mechanic's liens if a previous subcontractor did not pay for materials.

A good real estate agent should be able to make the process of purchasing an unfinished home a smooth one for you. A local agent can check on the history of the place for you and help you through the many parts of the homebuying process you don't have to think about when you buy a finished home.

We are experts in the Las Vegas area. For the best in Las Vegas housing and the news on short sale and bank owned home opportunities, contact:

N & Y Team

Nebi Adhanom Direct: (702) 277-9922

Yonas Woldu Direct: (702) 236-8997

Fax: 702-898-9738

www.VegasRealProperty.com

Click here to get a market snapshot of your home value!