Nevada Real Estate >> Las Vegas Real Estate Specialist: December 2009

Mountain's Edge November 2009 Real Estate Resale Market Report:

• Listings (12/15/2009):  199
• Under Contract (12/15/2009):  351
• Sold November 2009:  79
• Month's Inventory:  2.5

Since Last Month:  Listings are UP +22, Pendings are DOWN -9, Sales are UP +1

Last Month's Mountain's Edge Real Estate Market Report

Mountain's Edge is a newer community so many of the listings are short sales or bank owned.

Arlington Ranch November 2009 Real Estate Resale Market Report

• Listings (12/15/2009):  13
• Under Contract (12/15/2009):  64
• Sold November 2009:  14
• Month's Inventory:  0.9

Arlington Ranch changes since last month:  Listings DOWN -1, Pendings DOWN -3, Sold UP +6

Click Here for Last Month's Report

For More Las Vegas Communities and Reports Click Here

Lasvegasmtg.com Report: VA Condo approvals will not use the HUD/FHA Condominiums Project approvals effective December 7th 2009. I wrote an earlier article that the new rules FHA implemented would change how FHA could be used to purchase any condominium projects in Las Vegas, Nevada. It was pointed out that it would be harder to get condominiums approval with the new changes and would affect the large number of Condos that are in inventory in Las Vegas, Nevada, by limiting the type of loans that could be used.

VA had in the past accepted the HUD/FHA Condo approval list and was listed in the VA Lenders Handbook, Chapter 16 that specifically covers Common Communities, Condos and Planned Unit Developments, Section 16-A.02. VA stated that in the past the HUD/FHA Condo approvals were similar in reviews and approval procedures to the VA, so it did not require a separate review or organizational documents.

Due to the HUD/FHA Mortgage letter 2009-46B which outlines the changes on condo project reviews and approvals changed so dramatically that VA has made the decision to rescind the the use of HUD/FHA condo project approvals for VA Condo loans. This notice can be found on Circular 26-09-19.

Presently it is unclear on what or how VA will obtain condo reviews or approvals after the December 7th 2009 deadline.  As soon as information is released on the procedures for VA condo Approvals I will pass this on in another post.

John Le Francois Senior Loan Officer All Western Mortgage Inc. 8345 W. Sunset Rd. Suite 200 Las Vegas, NV, 89113 US	Work: 702-947-0648 Mobile: 702-271-2659 Fax: 702-541-9901 jlefrancois@awmlv.com http://www.lasvegasmtg.com
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Nevada Trails November 2009 Real Estate Resale Market Report (Homes For Sale, Pending, Sold):

• Listings (12/15/2009):  20
• Under Contract (12/15/2009):  54
• Sold November 2009:  6
• Month's Inventory:  3.3

Since Last Month:  Listings are DOWN -3, Pendings are UP +12, Closes are DOWN -7

Last Month's Nevada Trails Market Report

Click here for More Information on Nevada Trails Living.

Very pertinent info for the Las Vegas Area Market!  Comments disabled, please go to Broker Bryant's post if you feel the need to comment:

Very Pertinent information for the Las Vegas Area homeowners.  Comments disabled, Please go to Katerina's post to comment:

Does our government just have nuts and bolts for brains? Can one be so blind to the issues at hand in regards to our economic status, to how much further we are falling into debt, yet they keep announcing rays of hope?

Let me pose a question to everyone. What has happened to common sense and logic? Is common sense not so common anymore? 

Before I get into the gist of my gripe, frustration, and fear... yes, FEAR... Whenever I always debate a situation, a fact, or an issue, I always try my hardest to look at it from both sides and not just from my emotional state of mind.

As we venture into 2010, I see more chaos on several horizons. Let's attack 3 important issues that I see will bring much chaos, frustration, and fear.

1. The New Good Faith Estimate. Not only is this form much longer, could delay settlements because of the new MDIA law (Mortgage Disclosure Improvement Act), but it could impose misleading mortgage shopping to consumers.  Gerry Suarez gives you his opinion and a good example to why this could cost the consumer more when shopping for a mortgage. Please read : The Road to Hell and the new mortgage disclosures.

2.  Foreclosures : There have been estimations that we could see another 1-2 million foreclosures by the end of 2010. One thing that seems to be talked about is the fact that many of the foreclsoures are due to the loss of equity. I know there are reasons for this, but I see the major problem being the huge unemployment numbers and loss of jobs. Why is this not talked about as much?  The government spoke so highly about the 2009 stimulus package that was partially structured to help with new jobs.  Hhhmmm, inquiring minds want to know what they were smoking.

3.  Immature government spending.  I will go on the record to state that I have seen so many smoke screens in regards to free government spending, making it sound like the main solution is to keep printing money, and this will help our current economy rebound quicker. But who will pay for this printed money?  Let's take a closer look. What about the Tax Credits for first time homebuyers?  I know many of you think that this has helped sell real estate, but seriously, who are we fooling. Again, if you take a much closer look at these tax credits, which were first established in 2007, it has not done as much as it was intended. My guesstimating would be less than 5% of all homes bought since 2007, were the direct reason for new homebuyers. Many people were going to buy anyhow. Secondly, because of the lack of government prevention, this tax credit has led to billions of dollars in fraud now. Please read these :

• The high levels of fraud pertaining to the first time homebuyers tax credit - Eye Opening Info
  

• The Welfare Mentality of the First Time Homebuyer's Tax Credit

• So you think you outsmarted the crowd because you skipped the $8,000 first time homebuyer tax credit

My summary on the tax credit & free gov't spending : In 2007, there was a stipulation for the homebuyer to pay it back in 15 years. You didn't make a payment until year 3 and in the 13 years, it was only going to cost you about $43 a month to repay the tax free loan. I am soooo confused to why we couldn't go back to this.  Again, what is the government thinking?

What about the billions of dollars that were spent on the MBS's to keep interest rates down?  People bought with 6% and 7% rates.  This has been wasted money only for the good of keeping consumer confidence riding high, when in reality, it will hurt us in the short and long term. Yes, Billions of dollars, to keep rates in the low 5's.

Okay, the economy has been crumbling in the last 2 years and new predictions are now saying possibly 2011 before a true recovery starts to happen. Don't get me wrong, I do believe that we need to tighten some lending requirements, but do we seriously think another 2% for a downpayment would work? Do we seriously think 620 and 640 credit scores will truly make people pay back their mortgages? I know there have been studies done on the different levels of credit scores, but have certain factors been taken in consideration such as :

1. Loss of job

2. Death in family

3. Higher property taxes

4. General cost of living

I wrote a blog at the end of 2007, talking about the fact that we are in a slight recession.  My 2007 review and 2008 predictions. I think several of us saw this coming, but it wasn't until 2008 that we were actually told that we are in a recession. You have to understand the true definition and that this definition varies amongst different experts.

Overall, we need to re-look at certain things and to why borrowers miss mortgage payments. What ever happened to the ability to repay vs the credit score?  Keeping in mind that things happen that aren't in ones control.  Here are a few posts that I wrote about these current issues.

• I want your skin in this game. Give me more skin, a larger down payment.

• FHA loans to 5% down?  Where is the common sense in all of this?

(for those that can't read the name on the desk, it says Chief Bean Counter)

Let me cut to the root of our current problems and why I don't see any relief in sight. This is based on my opinion of watching our government closely for the last 12 months.

It's called greed and selfishness. I am sorry, but many in our government only care about themselves and obtaining new votes for the new elections. Some have even admitted to this which I have written about. They tell us what we want to hear and make this immature spending sound like it will work. Yes, these individuals have common sense, but they don't use it, because selfishness super-cedes this thought process. We can change this by voting for others, or rise up and to protest harder and louder. It can be done, but we need these changes to start in the trenches. I gave some of my thoughts and opinions in this blog from the summer. Call to Action : We must fix the real estate market ourselves!!

Conclusion: I am just fed up with the misleading information that circles from the government, to the media, and then to the consumer. I don't want to make this political, but there are some major political issues and this free spending will put us deeper in the hole. What we need is less government interaction and more small business interaction and private investment.  What do you say?  Think?

UPDATE : 12/28/09 - 1 pm - I just came across this post by JP Lowry and I think it hits some points that I didn't dwell on, trying to keep my blog short.

Why Banks can't loosen lending.... it's just not up to them.

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For more information on FHA loans, please go to this link. The FHA Expert

For more information about the 2009 Tax Credit for First Time Homebuyers : 2009 Tax Credit

For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags!

Copyright © 2009 by Jeff Belonger of Infinity Home Mortgage Company, Inc

Incredible information for Military Personnel and I am personally working on one of these listings right now.  Contact me if you think you may qualify and have further questions!

Please leave comments on Cindy's post as they are disabled here:

Silverado Ranch November 2009 Real Estate Resale Market Report (Homes For Sale, Pending, Sold):

• Listings (12/15/2009):  135
• Under Contract (12/15/2009):  258
• Sold November 2009:  62
• Month's Inventory:  2.2

Since last month:  Listings are DOWN -3, Under Contract DOWN -15, Sales are DOWN -22

Read Last Month's Report Here

The mortgage and real estate markets are in the midst of a major overhaul on the heels of the current housing embarrassment. The home loan sector has already seen major regulatory changes, some needed and some of dubious value. And in this climate of political gamesmanship and Wall Street lobbying more is conceivably on the way to favor large financial institutions. Mortgage lenders have also tightened considerably underwriting standards to align their operations to better handle the new market realities.

The economically significant housing sector is absorbing changes unimagined just a few years ago. One of them is the fact that homeownership is on a downward slide. The recent New York Fed's study points out that homeownership crested at a respectable 69% in 2006 and now stands at 67.3%. At this point it's down only fractionally, but this meltdown still seems to have enough legs to go another year or two. Perhaps even longer. As a result it probably will sink several more percentage points.

Homeowners being upside down - the disturbingly unpleasant experience when the mortgage balance exceeds the home's value - on their property is the underlying cause here. This has actually become a major impediment to the entire real estate market's recovery plan. According to Zillow.com, to date homeowners have lost $5.9 trillion in value since the housing market topped out in March of 2006. Any time the worth of a major asset class nosedives like this there will be serious consequences on many fronts.

Southern Nevada - with communities like Las Vegas, Henderson, Mountains Edge, Anthem, Rhodes Ranch, Silverstone Ranch, Mesquite, Summerlin and Anthem - homeownership rate over time is likely to take an even bigger hit than the national average. The real estate market here is in the grip of its worst slump in memory, easily qualifying it as one of the worst around. It puts more downhill pressure on the curve, bending it to where it hasn't been in a long while.

Many present upside down, or underwater, homeowners on a national scale will turn into tenants. Typically they expect to find the roof for over their head more affordable in an apartment or a rental home. This probably is true in many areas in today's real estate market.

Yet, for instance in Las Vegas home values in the lower end of the market have dropped to the 1990s levels, making them totally attractive. Couple that with the low cost of mortgage money and real opportunities abound all over the place. Now, the challenge is how do these underwater homeowners dispose of their existing property and still be able to qualify for a new mortgage.

Homeownership will continue declining for the foreseeable future, only to stabilize when most of the mortgage foreclosure traffic is brought under control. It'll probably one day claim back some of the lost ground, but reaching the 2006 high again appears to be a distant dream.

Does creative financing still exist or are there ways to purchase homes in Phoenix without traditional financing these days?  If you're like me, you're probably saying, "No way".  If so, read on. 

Recently, I had the privilege of speaking with a real estate investor, by the name of Nick Johnson, that specializes in Short Sales and "Subject To" purchases.  Nick and I got introduced through a mutual friend, Matt Rosen @entrepreneurHI, from Twitter.  I learned a lot about Nick after talking with him for only an hour on the phone.  I learned all about his high regard for his family, his unparalleled ethics and his business philosophy.  Additionally, I also learned he is also the author of the eBook, "Subject2".    

While most of us in the Phoenix area and beyond are all too accustomed with the term Short Sale, "Subject To" was not a practice in which I was all too familiar.  Being the type of individual that prides myself on keeping current with what is available in today's marketplace, I immediately had to do some investigative research.   I figured that I would share a little overview of what I discovered. 

"Subject To", also referred to as "Subject 2" or "Sub2", is a form of creative financing in which the seller deeds the property to the buyer while keeping the existing mortgage note fully intact.  The buyer, typically a real estate investor, simply makes the mortgage payments on the existing mortgage.  These transactions can provide an array of benefits for both the buyers and sellers.

 The buyers do not need to go through the headache (I know all about this) of getting qualified for a new mortgage note.  There is no credit, income or asset verification required.  The investors own the property, but do not assume the loan.  This leaves personally liability on the sellers.  Typically, the main advantage for buyers in these transactions is acquiring a property at a much lower interest rate than if they were to purchase the property outright.

It may seem unbelievable to most of us that a homeowner would deed over their property to another individual, but there are many reasons that sellers find this a great option.  The primary reason that many sellers opt for Sub2 financing is to obtain debt relief.  Some are facing foreclosure and unable to sell their property due to lack of equity.  Owning a property that is "underwater" is a concept that many Arizona homeowners can relate all too well.  Others simply want a fast sale.  They may be moving, transferring jobs, getting married, divorced or a whole list of various scenarios.  

Subject2 contracts should be implemented by a knowledgeable real estate professional.  We've all witnessed the dangers of working with someone who claims to be an expert but has no more expertise than you or me.  A sub2 contract is essentially the same as a standard state approved contract.  The only difference is the 'sub2′ addendum states the terms of the existing loan. 

In today's credit climate, we all know someone who may be struggling to qualify for a loan or continue making their monthly mortgage payments.  I would encourage you, no matter what your preconceived ideas of traditional financing are, to have them contact me before it's too late.  There are many times that I may not be able to help them but I can guide them in the right direction.  Don't let them become just another statistic.

Understanding the $8000 / $6500 Tax Credit

Credits Offered to both First Time Home Buyers and on Purchase of a New Primary Residence

There are key dates and conditions involved in this process if you expect to qualify for the $8000 or $6500 tax credit.

Some of the basics are:

· Homes valued at $800,000 or more do not qualify.

· A first-time buyer does not mean a person who has never purchased a home.  The IRS defines a first-time buyer as anyone who has not owned a principal residence during the three-year period prior to the purchase.

· If you’re married, you and your spouse must pass the consecutive-year test. For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse would qualify for the $8000 first-time homebuyer tax credit. However, you could be eligible for the repeat buyers’ $6,500 credit.

· Unmarried joint purchasers may allocate the credit amount to any buyer who qualifies as a first-time buyer, such as if a parent jointly purchases a home with a son or daughter.

Key Dates:

· April 30, 2010: Purchase and sales agreements must be dated by all parties with a date on or before Friday, April 30, 2010.

· June 30, 2010: Purchases must close on or before Wednesday, June 30, 2010.

Here is the tax credit form:

First Time Homebuyer TAX CREDIT FORM

So you've decided that you want to buy a home in Phoenix, AZ.  Besides the many advantages to living in the Valley, interest rates reaching all-time lows coupled with the recent plunge in home prices make Phoenix a very affordable and attractive option.   Nowadays, it is actually cheaper to purchase a home in the Phoenix area than rent.  The only down side to this scenario is that you're short on cash for a down payment.  Unfortunately, you cannot get a gift from your family, you've already tapped out your 401K, you are not eligible for a VA loan, you make too much money to qualify for down payment assistance, and you have no desire to live in a rural area.  So, the question is..... What can you do without a down payment???  Meet the qualifications for the $100 Down Payment HUD Home Program.

Let's take a trip back in time and describe why the availability to finance a home with the $100 Down Payment HUD Home Program arose.  During the housing boom, many of the homes in Phoenix were financed with Conventional loans.  Prior to the run-up in home prices, many first-time homebuyers used FHA loans to purchase housing.  Once home prices started rising at unsustainable levels; homeowners began to refinance their FHA loans into Conventional loans to pull cash out, remove mortgage insurance, and lower their monthly obligations.  Once these homes, now with Conventional financing, went into foreclosure, the banks began to sell their inventory at a discounted price.  At the beginning of 2007, many of the new homebuyers were forced to use a FHA loan due to inability to finance their purchases with Conventional mortgages in Phoenix.  These homebuyers were unknowingly still buying homes at inflated home prices.  Sadly, many of these homes purchased in 2007 and 2008 with FHA loans are currently going into foreclosure.  In most cases, the current values of these homes are significantly less than what is owed.  The $100 Down Payment HUD Home Program is a result of a FHA borrower foreclosing and HUD repossessing the home that is now for sale.    

So Who Qualifies? 

 Now that you've been able to determine you may be able to qualify, here is an outline of the next steps you need to take.

Step 1 - Get pre-qualified for the $100 downpayment HUD Homes Program

Step 2 - Choose search area and type of home (i.e. North Phoenix - 3 bedroom, 2 bath with 1,500 square feet or more)

Step 3 - Create a login and password at our customized database to search homes

Step 4 - Contact us to match you with one of our Realtor partners that can assist you with viewing the homes you are intrested in.  Please note, not all Realtors are trained and educated for HUD homes.  It's very important to work with one of our preferred partners that has experience with HUD homes.

Step 5 - Submit an offer, get acceptance and go through the loan process.

Step 6 - Close on your purchase using an FHA-insured loan.

It can be a very simple process but the first step is to get pre-qualified.

My true love would never wish this upon me but here is a round up for my week:

1^st day of this mess a listing agent gave to me...........

 a short sale approval!

2^nd day of this mess Active Rain gave me.....

 two featured posts

3^rd day of this mess a cooperating agent gave to me......

 news that three addendums were "lost"

4^th day of this mess a lender gave to me.......

 Four pieces of paperwork that needed signatures

5^th day of this mess title gave to me.......

 Five sets of commission instructions

6^th day of this mess my house gave to me....

 Six Italian Greyhounds (we are babysitting 3!)

7^th day of this mess my daughter gave to me....

Seven alternatives to Omaha that weren't going to work because of a blizzard

8^th day of this mess my buyers gave to me.....

 eight different appointments

9^th day of this mess, my car gave to me....

Nine stops all over the city

10^th day of this mess, my leads gave to me.....

Ten follow up calls

11^th day of this mess a BPO servicer gave to me...

 11 BPOs!

12^th day of this mess the Gift of Shift gave me.....

 12 tactics to do business in tough times! (FYI, this isn't my shift post!)

Merry Christmas all!  Hope you have a wonderful day and enjoy your friends, families and fur babies (I am off to do that shortly!!)  I love Christmas time, it is one of my busier times of the year because other agents tend to think that is slow so business falls in the lap :)

I am working two of these right now, funny!  (Going to keep comments on this one!)  Merry Christmas Everyone!

Comments disabled, please see Lyn's post if you would like to comment!

lasvegasmtg.com Report: Las Vegas, Nevada's Future Credit Challenge due to the number of Foreclosures and the number of Bankruptcy filings, and the high unemployment rates, Las Vegas, Nevada may see a large percentage of people unable to get any form of reasonable credit for many years to come. Nevada's Future Credit challenge will affect more then just the ability to purchase a home, but will make it harder to find suitable housing, and work that both rely on credit scores here in Las Vegas, Nevada.

Nevada's Future Credit challenge 1. Foreclosure in Nevada

First lets look at the Foreclosure status in Nevada for the 3rd quarter of 2009 to see how this will effect Nevada's Future Credit Challenge. Realty Trac reported that through the 3rd quarter of 2009 the National record of of all foreclosure proceedings was 937,840 units a 5% increase over 2 quarter 2009 and a 23% over the same time in 2008 and this is 1/136 homes are in foreclosures. Realty Trac reported in Nevada there was 47,925 total foreclosures through the 3rd quarter of 2009. an increase over the 2 quarter. of 9.68% and over the same time last year a 58.88% increase, and this is 1/23 homes are in foreclosures. Currently over 110,965 homes since 2006 have been foreclosed on in Las Vegas, Nevada. For a break down of foreclosures in Las Vegas Nevada for each year 2006 = 21,045, 2007 = 30375, 2008 = 31,187 and year to date as of December 7th 2009 = 28,189.

With the new guidelines that will prevent any borrower from getting a home loan for four years from the date of the foreclosure this will affect Nevada's Future Credit Challenge.

Nevada's Future Credit Challenge 2. Bankruptcies

Granted that some of the people that had foreclosures within the last three years might have filed for bankruptcies protection, but the shear numbers of filings tell another story. For the last three years we have seen a gradual increase with the third quarter of 2009 reporting a 23.86% increase in filings for the same time period in 2008. Since 2006 the filings have exceeded the highs of 2005 when legislation changes were enacted for Bankruptcy reform. For 2008 in Las Vegas there was 15,790 Bankruptcy filings and for Oct 2009 there has been 22,600. 

With the new guidelines that will prevent any borrower from getting a home loan for three years after the Bankruptcy discharge date, this will affect Nevada's Future Credit Challenge.

With high unemployment rates in Las Vegas at 13%, Las Vegas has seen for the first time a decline in population with a negative migration of 4,000 people for 2009. Until housing prices stabilizes and unemployment rates declines Las Vegas, Nevada will face a Future Credit Challenge.

John Le Francois Senior Loan Officer All Western Mortgage Inc. 8345 W. Sunset Rd. Suite 200 Las Vegas, NV, 89113 US	Work: 702-947-0648 Mobile: 702-271-2659 Fax: 702-541-9901 jlefrancois@awmlv.com http://www.lasvegasmtg.com
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This is a gentle reminder (with the holidays upon us) to my clients and people who just read my blog.  I cannot make appointments without Pre-Approval with a DIRECT IN TOWN lender (financed offers, no out of town brokers please) OR Proof of Funds (all cash offers.)

Right now (as I have said in the past,) buyer interest is extremely high, combine it with holidays and out of town buyers, there is no one on my team that will show (even during the "slower" seasons) without those pieces of information.

You need them to submit on short sales, you need them to submit on REOs.  If you don't have it, then you are not prepared to write an offer (SORRY!)

The crickets are not chirping here for the next month and a half.  We have several major holidays which brings buyers into our Las Vegas market and gets us bogged down:

• Thanksgiving
• Christmas
• New Year's
• MLK Weekend
• Superbowl Weekend
• Valentine's Day

There are many "lookers" during these times and we would rather spend time with our loved ones than tire kickers!

Merry Christmas, Happy New Year's and thank you for your understanding!

Age Restricted (55+) Communities are scattered throughout the valley.  Many offer a variety community amenities for Seniors who enjoy active lifestyles.

Sun City Anthem is located in the Anthem Area of Henderson, NV (zip 89052 and 89044).  There are 7312 Homes in Sun City Anthem ranging from 1080-4567 Square Feet.  Community Amenities Include:  Community Golf, Gym, Pool, Spa, Tennis, Clubhouse and Recroom

Sun City Anthem Market Report:

• Listings (12/15/2009):  136
• Under Contract (12/15/2009):  68
• Sold November 2009:  22
• Absorption Rate: 6.2 Months of Inventory

Since Last Month's Report:  Listings DOWN -6, Escrows UP +1, Solds DOWN -10.  Sun City Anthem is currently enjoying a stable market.

Renee Burrows carries the SRES (Senior Real Estate Specialist) Designation and has Probate and Estate experience.  If you need a referral to a Probate or Estate lawyer, please contact me!

Seniors Real Estate Specialists® are REALTORS® qualified to address the needs of home buyers and sellers age 50+. The SRES® Council awards the SRES® Designation to those members who have successfully completed its education program.

By earning the SRES® designation, your REALTOR® has demonstrated necessary knowledge and expertise to counsel clients age 50-plus through major financial and lifestyle transitions involved in relocating, refinancing, or selling the family home. Your REALTOR® has received special training, gets regular updates, and is prepared to offer the options and information needed in making life changing decisions.

For Last Month's Sun City Anthem Market Report Click Here

For Most Current Sun Cities Market Report Click Here

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