Nevada Real Estate >> Las Vegas Real Estate Specialist: February 2010

Every once in a while I scan my google analytics for long tail searches to my blogs and see unanswered "questions" in the long tail searches that found me!

This time I found the question asked twice:

It depends, it is anywhere from free (the lawyer charges your lienholders) to several thousand dollars (and it is paid through a payment plan!

Which leads to another question:

Again that answer is FREE to a couple hundred dollars, depending on the lawyer

These types of transactions are extremely complicated and the consequences differ for each individual situation.  It is imperative that my clients receive the highest level of service and understand the consequences to their specific individual situation.

If you would like to receive a list of lawyers who give these consultations so you can make the best decision for *you* - deed-in-lieu of foreclosure - short sale- loan modification - simply call me at 702-966-2494 (option 0) or email me at 411@ReneeBurrows.com and ask for your "Distressed Property Legal Options" List.

www.lasvegasmtg.com Report: Calgary Herald reports Canadian Snowbirds say "Viva Las Vegas"! In a article written by Marty Hope on 02/27/2010 in the business section of the Calgary Herald, interviewed Gabby Franco and his wife the owners of www.lasvegasforcanadians.com. They have partnered with Tony Allotta from Century 21 MoneyWorld who helped them purchase their first home in Las Vegas, Nevada.

The Franco's have visited Las Vegas as tourist for many years escaping from the snow and cold winters that Canada is famous for. Over several visits the thought of buying a second home was in the back of their minds till finally in 2008 they looked for a home in Las Vegas, Nevada. After several visits they purchased a 2,300 square-foot 4 bedroom home with the help of Tony Allotta.

The choice of Las Vegas was easy for the Franco's who have family in the US with easy access to Las Vegas and their family was the number 1 choice was accessibility. With the strong Canadian Currency and affordable home prices in Las Vegas, Nevada it was the perfect choice for the Franco's. Franco was also influenced by the tenants willing to lease back the property they once owned.

The Franco's have formed their Company with Tony Allotta using their real life experience to help other "Canadians" looking to find the answers on purchasing a home in Las Vegas, Nevada. They have helped other Canadians to work through the process by providing a seminars and with Allotta working the Las Vegas end it has developed into a formidable alliance. "Viva Las Vegas" and 'Viva Canadians".

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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Age Restricted (55+) Communities are scattered throughout the valley.  Many offer a variety community amenities for Seniors who enjoy active lifestyles.  For More Sun Cities, Click Here!

Sun City Summerlin is located in the Summerlin Area of Las Vegas, NV (zip 89134).  There are 3470 homes in Sun City Summerlin ranging from 1021-4051 Square Feet.  Community Amenities Include:  Community Golf, Tennis, Gym, Pool, Spa,  Recroom

Sun City Summerlin Market Report:

• Listings 2/15/2010:  52
• Under Contract 2/15/2010:  27
• Sold January 2010: 6

Since Last Month:  Listings are DOWN -5, Contracted Escrows are UP +7 and Sold Units are DOWN -2

Sun City Summerlin is currently enjoying a Buyer's 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 Summerlin Market Report Please Click Here!

For Most Current Sun Cities Market Report Click Here

I wear blue jeans and casual shoes that are made of cloth and can go in the washer.  To some people, they may think I lack professionalism but if they could encounter what I encounter, as we never know what treasure we will find when we open a door, it will all be forgiven.  Walk a mile in my shoes and learn what to wear (and what you will may encounter) while shopping what is termed "Distressed Property" (REO, Foreclosures, Short Sales.)

From tip toe-ing through pigeon turds & cockroach carcasses and breathing in mold in between (let's not forget elements too) here is a guide on what to wear when searching for an REO or short sale:

Don't bring children if you don't have to!  It would mortify me if brown bear or blannie touched the floor in some of these homes - and I am not the best housekeeper in the world.

Dress for the Elements!  Make sure you are dressing appropriate for the weather.  Distressed property may lack heating or air conditioning.  I would say it is socially acceptable to wear shorts and tank tops in the summer for now while searching for homes.  Bring water in your car to stay hydrated.  In the winter, even though we don't see severely cold winters, make sure you layer up with sweaters and extra pairs of socks.

Be aware of potentially hazardous situations (while this isn't "the norm":)

Squatters:  This does not happen as frequently as it used to.  For the most part, with the market being extremely hot and homes receiving multiple offers + list agent checks and weekly preservation checks, odds of running into a squatter are a little less what they were even a year ago!  Active listings are generally getting multiple visits per day. 

Smells:  Sometimes smells in vacant homes can be overwhelming.  Many times it is due to the fact that someone used the toilet when the water is off.

Mold:  Persons highly allergic to mold should bring face masks when looking at homes to avoid breathing in mold spores. 

Pests:  If cockroaches bug you, you shouldn't be living in Las Vegas!  Many times pest control has been called in after the foreclosure so usually there are just dead bugs everywhere.

Water Damage:  Wear non-skid comfortable shoes. 

Lights Out:  It isn't safe to look by flashlight in homes that do not have electricity.  It is important to schedule appointments during daylight hours.

Trash:  I see it a lot pre-list but now agents are doing a better job at cleaning out their properties but it is still possible (although more rare) to find personal belongings in REO properties.  You will run into trash if you are looking at short sales.  Sometimes the property hasn't been cleaned in years.  There are some that I wonder if they were ever cleaned since they were built.

Green Pools:  Stagnant water sources breed diseases and most notably become a great breeding ground for mosquitos that could bring a concern for West Nile Virus.

More than ever, it is important to work with real estate professionals who know this market to help spot potential hazards because you never know what is hiding behind that closed door!  

Mortgage 101 - How to qualify a borrower

Juggling is an art, wouldn't you agree? Well, so is pre-qualifying a borrower for a mortgage. In my opinion, it takes more than just basic knowledge and simple math skills.

In the last few days, there has been a growing debate out there that even the experienced realtors can pre-qualify a borrower.  It doesn't matter if you :

     --  know your borrowers credit scores

     --  know that they are putting 20% down

     --  know that they make x,y,z a year and the simple math says they qualify

What questions should be asked when qualifying a borrower?

• What kind of mortgage payment would you be comfortable with, to include taxes and homeowners insurance.

• What kind of future goals do you have?  3yrs?  5 yrs? 10 yrs?  I ask this question for several reasons, depending on the term of the loan (30 yr fixed rate or 5 yr arms) and maybe to pay down the interest rate.

• How long have you been on your job?  Are there any employment gaps in the last 2 years?  Are you hourly, salary, self-employed. Do you get other types of income? Do you work overtime?

• Credit report - I need to see a copy or pull one myself. Then I go over all debts on the credit report. Then I ask if they have any other outstanding debts that don't appear. Do you have any alimony or child support?  Are you making any payments on past collection accounts and or judgments?  You also need to look at the borrower's pay stub for any other deductions that might not be found by looking at the credit report or from asking the questions above.

• What kind of cash assets to you have total and how much of that do you want to use? You need to review the bank statements to see if there have been any large deposits recently. This is one huge mistake that many loan officers make.
  

• And so much more...
  

Summary : There a are a few more questions that pertain to qualifying a borrower properly, but I wanted everyone to understand that it's just more than knowing what they make, how good their credit is, and how much they are putting down. Yes, realtors like to get a quick idea.  But why?  Is a day going to kill you?  If you are so concerned about capturing that borrower, not losing them, have the borrower sign a buyer's agent agreement. I know some of you are against this, but I can't stress that realtors should not be giving any mortgage advice what so ever.

Great example.

I qualified a buyer a few days ago that is going to be using USDA financing. They told the realtor this and the realtor stated that many sellers are leary of USDA loans and that they would be better off going with a FHA mortgage. And that you really can't get much seller help on USDA loans, but that you can get up to 6% seller help on a FHA loan. (FYI - you can get reasonable closing costs paid by the seller for USDA loans. USDA has no percentage cap like FHA does.)  She then proceeded to tell the borrower that even her loan officer stated that FHA loans are better. Are you kidding me?  This loan officer hasn't even spoken to this borrower. You can not make that kind of judgment call so blindly.  So maybe the loan officer is not comfortable with USDA loans and prefers FHA loans instead. That kind of thinking could hurt the borrower.

An excellent loan officer doesn't just ask the questions mentioned above, but reviews all the basic mortgage programs to see what best fits the borrower.

Just a FYI…..

What I find that so many borrowers are stuck on, fixated on??  It's that they want the best interest rate, yet they don't have a trusted loan officer that will ask them the first question that I try to ask first all the time. What payment do you feel comfortable in paying??

Important Reminder :

Yes, referrals are good, but don't hesitate to even interview your loan officer and or realtor. Not everyone is a fit just because they sound nice and or gave you the best deal. There is a lot more to this whole process than what meets the naked eye. Please read : Interview your loan officer and or realtor

Good Luck

________________________________________________________________________________________________

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- FHA Loans - USDA Loans - VA Loans -

- Energy Efficient Mortgages - 

- Conventional Loans - 203 k loans -

- FHA Home Loans - Mortgages -

Experience & Knowledge at its BEST !!!

________________________________________________________________________________________________

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 © 2010 by Jeff Belonger of Infinity Home Mortgage Company, Inc

ww.lasvegasmtg.com Report: Is this the end to power Companies as we know it? If you read the article from www.walletpop.com or saw the 60 minutes segment on a small company based in Silicone Valley that produces a small cube sized box they loving call the Bloom Box you would say yes to the question! This little box is the brainstorm from a rocket scientist K. R Sridhar that worked on the Mars Project for NASA who created a small device to make oxygen for the now defunct Mars Colony  that has since been de-funded. By reverse engineering he developed a low cost fuel cell with unbelievable results in efficiency, size and will work on virtually with all sources of fuel from natural gas to bio fuel.

With over $400 million in investment funds it could hold the answers of weaning the nation off of the dependency from oil.  This secretive company that does not even have the company name on its building finally has allowed 60 Minutes to see the company and speak to clients that have been testing for up to 18 months this amazing product. With over 100 companies working to find the answer it appears this manufacturer of the Bloom Box is closer to finding the holy grail, cheap, green, environment friendly, no pollution, power source, for not only Businesses, but homes as well.

With two little boxes connected to a gas line it would produce enough electricity for every average sized American home. Expected cost per home is $6,000.00 plus installation and would pay for itself in less then 3 years. Sounds to good to be true doesn't, but look at the trial models already in use and your skepticism. Who are the Guinea pigs for this testing? Try these on for size FEDEX, E-bay, Google, Staples and Wall-mart. Don't take my word, look at the video.

Watch CBS News Videos Online

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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Charleston Heights January 2010 Real Estate Resale Market Report:

• Listings (2/15/2010): 87
• Under Contract (2/15/2010): 130
• Sold January 2010: 25
• Month's Inventory: 3.5

Since Last Month:  Listings are DOWN -3, Pendings are DUP +18, Solds are DOWN -14

Why Las Vegas Pendings Are Not Closing

Last Month's Charleston Heights Real Estate Market Report

For More Las Vegas Communities and Reports Click Here

Real Estate Question : As a first time home buyer not knowing anything about buying a home, where do I start?

The question above was something I just read on Trulia's questions and answers section.  I was very shocked at some of the answers that were given from realtors. Let me start by saying that this is merely my opinion. No, I am not always right and don't claim to be, but some questions should not be answered by a realtor and or a loan officer. Sorry, that is a fact and I will stick by this statement. 

My Opinion : You are walking a very fine tightrope if you talk to anyone but a qualified loan officer first in regards to the question above.

So what answers did I read that I felt were bad advice?

Realtor : "The best place to start is with a buyer consultation. I can explain to you what the steps are to buying a home and what you should expect."

Jeff Belonger (loan officer) - Having the realtor qualify you first? It doesn't matter if the realtor knows some things about mortgages. Speak to the loan officer about the mortgage process.  Please read : What questions should be asked when qualifying a borrower?

Realtor : "Referrals are always a good source."

Jeff Belonger (loan officer) - I will agree and disagree with this statement. Yes, if the person referring was previously a borrower who had a good experience with a certain loan officer.  Are all referrals from realtors good?  No... Just because your realtor says that their loan officer is great or that they are cheap, doesn't mean that this could be a good source for you. I have many real life examples. I am dealing with an Active Rain realtor at this moment who had to relocate to Florida because her husband got a good job. Well, they used her husband's friend from the old neighborhood who recommended his loan officer of choice. Less than 2 weeks later, she was referred to me by Brian Brady, another AR member, who read her plea for help on Facebook a few days ago. People, this stuff happens. My advice, interview your loan officer before you jump in bed with them. Please read : Interview your realtor and or loan officer

Realtor : "Searching for homes to get an idea of areas and type of home is a great idea and place to begin. Search around and have some fun looking. When you are ready you will know."

Jeff Belonger (loan officer) - Hold your horses.... why would you even look at a home, without knowing what you are qualified for or what it would even cost you. Just because you plugged some numbers into a mortgage calculator? Do you know anything about mortgage insurance? Besides, I have known homebuyers to fall in love with a house and then push themselves financially to buy that property.  It's important to have a mortgage payment in mind before shopping for a home.  Please read : What kind of mortgage payment are you comfortable with?

In my opinion, here were the 3 best answers from 3 different realtors out of like 16 realtors.

Realtor # 1 : "You should find a reputable mortgage company that you can sit down with and find out what you can afford, not what you can get approved for. Make sure the payment would be with in your budget not the realtors budget or the mortgage companies."

Realtor # 2 : "First step is get a pr-qualification from a reputable mortgage lender or bank. Knowing right from the beginning what your purchasing power is helps eliminate looking at homes out of your reach and saves valuable time for everyone involved."

Realtor # 3 : "Your first step should be to sit down with a mortgage representative to determine, not only what you qualify for, but what montly payment you are comfortable paying. You may qualify for more than you actually wish to spend. The next step would be to sit down with a Buyer's Agent to discuss your needs and wants."

Jeff Belonger (loan officer) - I don't know it all and won't claim to, but my biggest pet peeve is a loan officer qualifying a borrower without first asking the borrower what mortgage payment they would feel comfortable with. People, so what, you qualify for more.  Are you comfortable with that mortgage payment?  It's what you are comfortable with in regards to that mortgage payment.  It's not having the best or cheapest interest rate. I was called out by another loan officer saying that this was a poor method when speaking to a borrower. Please read : What kind of mortgage payment are you comfortable with?

Buying a home should be pleasant and enjoyable

Conclusion : I won't deny that it's great when you can find both a loan officer and a realtor that work together, both making your dream come true. Many will say that it takes a team effort. Yes it does. But those involved don't necessarily have to be on the same team and or know each other. Just remember that all referrals aren't always the best choice. Don't be afraid to do some research yourself.  Feel comfortable and never feel guilty that you might hurt someones feelings if you choose someone else. It will be your house, not theirs.  Don't let others lead you around astray, especially if you don't feel comfortable.  Have fun, but just be careful.

Does the REALTOR have the right to even pre-qualify you as a borrower?

________________________________________________________________________________________________

                                                                                           FOLLOW ME ON FACEBOOK

- FHA Loans - USDA Loans - VA Loans -

- Energy Efficient Mortgages - 

- Conventional Loans - 203 k loans -

- FHA Home Loans - Mortgages -

Experience & Knowledge at its BEST !!!

________________________________________________________________________________________________

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 © 2010 by Jeff Belonger of Infinity Home Mortgage Company, Inc

A touching story I received from a friend.

At a fundraising dinner for a school that serves children with learning disabilities, the father of one of the students delivered a speech that would never be forgotten by all who attended. After extolling the
school and its dedicated staff, he offered a question:

'When not interfered with by outside influences, everything nature does, is done with perfection.

Yet my son, Shay, cannot learn things as other children do. He cannot understand things as other children do.

Where is the natural order of things in my son?

The audience was stilled by the query.

The father continued. 'I believe that when a child like Shay, who was mentally and physically disabled comes into the world, an opportunity to realize true human nature presents itself, and it comes in the way other people treat that child.’

Then he told the following story:

Shay and I had walked past a park where some boys Shay knew were playing baseball. Shay asked, 'Do you think they'll let me play?' I knew that most of the boys would not want someone like Shay on their team, but as a father I also understood that if my son were allowed to play, it would give him a much-needed sense of belonging and some confidence to be accepted by others in spite of his handicaps.

I approached one of the boys on the field and asked (not expecting much) if Shay could play. The boy looked around for guidance and said, 'We're losing by six runs and the game is in the eighth inning. I guess he can be on our team and we'll try to put him in to bat in the ninth inning.'

Shay struggled over to the team's bench and, with a broad smile, put on a team shirt. I watched with a small tear in my eye and

warmth in my heart. The boys saw my joy at my son being accepted.

In the bottom of the eighth inning, Shay's team scored a few runs but was still behind by three.

In the top of the ninth inning, Shay put on a glove and played in the right field. Even though no hits came his way, he was obviously ecstatic just to be in the game and on the field, grinning from ear to ear as I waved to him from the stands.

In the bottom of the ninth inning, Shay's team scored again.

Now, with two outs and the bases loaded, the potential winning run was on base and Shay was scheduled to be next at bat.

At this juncture, do they let Shay bat and give away their chance to win the game?

Surprisingly, Shay was given the bat. Everyone knew that a hit was all but impossible because Shay didn't even know how to hold the bat properly, much less connect with the ball.

However, as Shay stepped up to the
plate,
the pitcher, recognizing that the other team was putting winning aside for this moment in Shay's life, moved in a few steps to lob the ball in softly so Shay could at least make contact.

The first pitch came and Shay swung clumsily and missed.

The pitcher again took a few steps forward to toss the ball softly towards Shay.

As the pitch came in, Shay swung at the ball and hit a slow ground ball right back to the pitcher.

The game would now be over.

The pitcher picked up the soft grounder and could have easily thrown the ball to the first baseman.

Shay would have been out and that would have been the end of the game.

Instead, the pitcher threw the ball right over the first baseman's head, out of reach of all team mates.

Everyone from the stands and both teams started yelling, 'Shay, run to first!

Run to first!'

Never in his life had Shay ever run that far, but he made it

to first base.

He scampered down the baseline, wide-eyed and startled.

Everyone yelled, 'Run to second, run to second!'

Catching his breath, Shay awkwardly ran towards second, gleaming and struggling to make it to the base.

By the time Shay rounded towards second base, the right fielder had the ball . the smallest guy on their team who now had his first chance to be the hero for his team.

He could have thrown the ball to the second-baseman for the tag, but he understood the pitcher's intentions so he, too, intentionally threw the ball high and far over the third-baseman's head.

Shay ran toward third base deliriously as the runners ahead of him circled the bases toward home.

All were screaming, 'Shay, Shay, Shay, all the Way Shay'

Shay reached third base because the opposing shortstop ran to help him by turning him in the direction of third base, and shouted, 'Run to
third!

Shay, run to third!'

As Shay rounded third, the boys from both teams, and the spectators, were on their feet screaming, 'Shay, run home! Run home!'

Shay ran to home, stepped on the plate, and was cheered as the hero who hit the grand slam and won the game for his team

'That day', said the father softly with tears now rolling down his face, 'the boys from both teams helped bring a piece of true love and humanity into this world'.

Shay didn't make it to another summer. He died that winter, having never forgotten being the hero and making me so happy, and coming home and seeing his Mother tearfully embrace her little hero of the day!

I have not researched the authenticity of this story and frankly don't care.  Even if it's fiction it's still a nice story and worthy of reading with a powerful message.  Have a nice day!

Underwater - or upside down - home ownership got worse as the past year wound down. First American CoreLogic published a new research paper on the issue stating that over 11.3 million homes were upside down at the end of 2009, meaning that 24% of all residential real estate with mortgages was carrying that unwelcome label. At the end of the third quarter of 2009 there were 10.7 million houses underwater, so in three months about 600,000 additional properties got whacked.

To stay with the statistics, First American CoreLogic further reports that 2.3 million more homes were heading towards the famous freezing submergence, these being units that had less than 5% equity cushion at year's end. Put together with those already underwater, the picture becomes increasingly bleak, because it now translates to roughly 29% of all mortgages holding that classification.

Nevada continues to top the list of states with the most underwater mortgages, coming in at 70%. Las Vegas area - with communities of Mountains Edge, Summerlin, Anthem, Henderson, Canyon Gate and Rhodes Ranch - predictably hoards the majority of those on account of being the population center.

Underwater mortgage in itself is a serious problem. The homeowner is trapped. He can't sell the property unless he brings hard-earned money to the table to close a deal. He can't refinance either, for the same reason. Generally, no one will do that. This effectively removes a large segment of current mortgage borrowers from the real estate market, putting a sizable dent on the demand side.

Secondly, upside down homeowners are more liable to default on their mortgages. The more they are in negative equity, the more likely it is that they'll lose the property, be it a short sale, foreclosure or deed in lieu. As their FICO scores get dinged badly, they'll be unable to get mortgage approvals for a few years, dealing another heavy blow to the demand function.

Simply looking at what underwater mortgage can do to demand sends shivers down the spine of policy makers, home loan providers, real estate experts and other interested parties. A major headache indeed. Or worse.

 Photo by krossbow

Mountain's Edge January 2010 Real Estate Resale Market Report:

• Listings (2/15/2010):  196
• Under Contract (2/15/2010):  379
• Sold January 2010:  55
• Month's Inventory:  3.6

Since Last Month:  Listings are DOWN -21, Pendings are UP +55, Sales are DOWN -27

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.

I'm no gloom and doom kind of guy but I am concerned.  I've written a post about the government buying mortgages and how that has kept mortgage rates artificially low.  I also wrote that once the fed stops buying mortgages that rates would be determined by the purchase and sale of mortgages on the bond market and that I believe rates will rise.  Today on CNBC a short video clip was made available regarding this. 

WATCH VIDEO

Some experts are speculating that the rates may remain the same or only jump .50%. Considering that most of the Nation's real estate is not recovering just yet (some places are) it's safe to say that if home values continue to drop in hard hit areas that these newer mortgages could default from borrowers walking away.  Not likely, but possible.  That possibility is the fear factor that I believe will drive away investors appetite for mortgage backed securities.  Also, what will happen to interest rates when the fed starts to sell the mortgages that they bought?

I hope I am wrong and they are right.  A 1% increase in rate would price some entry level buyers out of the market.  Combine this with the proposed increase in FHA up front mortgage insurance premium, the monthly mortgage insurance premium and you have a "double whammy".

Many seasoned home owners are choosing to sit in their homes and do nothing and investors are preferring to swoop up deals with all cash offers.  There are a limited number of cash buyers. If seasoned homeowners sit and entry level buyers are priced out of the market, this will certainly make our ability to make a living that much more challenging.

However,  I also believe that the sooner the government gets out of our business and allows free market to control it the sooner we will see real recovery.  The other large hurdle in real estate will be HVCC reform.

IS THERE MORE?

Yes.  I've addressed real estate but haven't commented on the US economy.  I found a video that is really interesting about what people predict to happen if the government doesn't get out of the "rescue" business.  This is a business news clip not Glen Beck. It says Glen Beck but for those who do not like him he does not air until 8 minutes and 45 seconds into the video.  Out of respect for my readers my political preferences remain private.  Feel free to fast forward the first 90 seconds of video where the "good stuff" starts being discussed.

Hyper inflation, shortages and lines for food and energy, higher interest rates and a devalued dollar. Some think this can and will happen in America.  I regretfully agree.  Therefore I'm glad the Fed is finally beginning to step away from their current role but be prepared for the shorter term ripple effect in our industry.  Short term meaning a couple of years. To survive I recommend you keep as much cash flow as possible (liquidity) even if it may not get you the best return. Save your money and refrain from spending on non essentials. Write a budget. A budget in your head rarely gets enforced. If you have to spend money, spend it on your business.

I hope that our government gets out of every facet of bailing out failed business models so we can get the recovery underway and allow entrepreneurship and small business to thrive. I'm in the same boat you are and if you and your referral partners meet and put together a plan of action it will make these bumps a little bit smoother. Unfortunately, some people don't have the luxury of time to be able and wait for the recovery. We should go out of our way to help them especially when they request our services.

Arlington Ranch January 2010 Real Estate Resale Market Report

• Listings (2/15/2010):  17
• Under Contract (2/15/2010):  59
• Sold January 2010:  11
• Month's Inventory:  1.5

Arlington Ranch changes since last month:  Listings UP +5, Pendings UP +2, Sold units DOWN -1

Click Here for Last Month's Report

For More Las Vegas Communities and Reports Click Here

Mortgage foreclosure statistics of late are showing that the persistently upward trend seems to be waning, which is good news indeed. However, it is only part of the whole real estate picture. The economy remains weak and the stubbornly high unemployment level continues to worry many housing observers, suggesting that homeowners would still be vulnerable. So, how is it that home loan foreclosures are losing steam?

The answer to that interesting question appears to be that mortgage lenders are adjusting strategy to favor short sales over mortgage foreclosures. Campbell/ Inside Mortgage Finance survey just concluded supports that theory. It says that in January nationwide short sales added up to 15.9% of all home purchases while move-in-condition REOs - or real estate owned - clocked in at 13.8% and wrecked REOs held a 13.4% share of the housing market. As recently as in November of 2009 these same categories rode along neck and neck at around 12%. Clearly there is a shift.

First-time home buyers generally favor short sales, as they can still acquire property at low prices and get approved for affordable mortgage money, going either FHA or conventional. Although the short sale process can be agonizingly slow, a first-timer often is willing to put up with that, so long as it is a juicy deal. Why not? Anyway, that's their playground. They are often outmuscled from the REO arena by investors who usually show up with a fistful of dollars, paying cash in other words, and can close pronto. Mortgage banks, like all sellers, tend to give the cash buyer the inside track, to no one's surprise.

Southern Nevada - including communities like North Las Vegas, Silverstone Ranch, Anthem, Rhodes Ranch, Mountains Edge, Mesquite and Pahrump - property owners are certainly toasting the gradual change working its way into the distressed mortgage realm. Las Vegas does have its share of them already in the pipeline and many more to be entered in the coming months. Short sale is easier on the credit report, FICO really, damage than a foreclosure is and can also relieve the homeowner from a deficiency judgment, although to be safe the home loan provider should be asked to put that in writing in great bold letters. 

Short sales becoming a more popular avenue for mortgage providers in dealing with distressed borrowers will help solve the overall housing collapse. Give it some lift. It won't be a cure-all, though. It's just one part of the whole, but a positive one at that.

Good Faith Estimates Explained

2010 Good Faith Estimates - Is the new form better?  If so, for whom? Can it be more confusing? What is different from the new Good Faith Estimate than the old Good Faith Estimate?  I will be talking about some of the pros and cons in this post.

Key Point - The new Good Faith Estimate went into effect on January 1st, 2010.  This form is still not 100% clear as of yet, hence why you don't see too many people writing about it. 

Overall, in my personal and professional opinion, I think HUD did a losey job when constructing the new Good Faith Estimate. Sure, it was meant to protect the consumer and I don't have a problem with that kind of thinking.  What I have a problem with is how it's laid out and the meaning behind it. Let's explore.

Let’s first establish a time chart – When does a Good Faith Estimate have to be sent out?

 HUD states that a Good Faith Estimate does not have to be given to the borrower until a mortgage application has been taken. A mortgage application is defined as gathering financial information and determining the credit worthiness of the borrower. There are '6 trigger points' that constitute a application.  HUD has made it very clear, under GFE general, in # 4, which are called the '6 trigger points'. 

What are the ‘6 trigger points’? - New update - HUD added a 7th

1. Borrower's name
2. Borrower's monthly income
3. Borrower's Social Security Number to obtain a credit report
4. Property address
5. Estimate of the value of the property
6. Loan amount
7. any other information deemed necessary by the loan originator
   

HUD has added a # 7, but I call it the CYA trigger. (cover your ass). It's very vague and I don't care for it. And this change was made in late January, which even shows that HUD is not clear on many issues. That scares me and the thinking that went into the new GFE.

Important Note – The loan originator has no later than 3 business days to send out a Good Faith Estimate (GFE) once the mortgage application has been taken. And it doesn’t have to be the actual full 1003, but just the 6 trigger points that have been mentioned above.

Important Reminder - Some lenders will have their own overlays when it comes to specific definitions. But this is the law set down by HUD and is mandatory. You will see many loan officers and lenders giving out different versions of the new good faith estimate, but they will be called :

• Itemized Lender Costs

• Mortgage Costs

• Itemization of amount financed sheet

• Itemization Fee Worksheet
  

What is deemed illegal in 2010?

Any form that says good faith estimate on it that is not the new 2010 GFE (Good Faith Estimate) form.  Yes, I have been given some of the old good faith estimates from borrowers in 2010 that are shopping for mortgages. Again, lenders will have their own standard form that will represent the old GFE, but it can't say Good Faith Estimate unless it's the new form.

The Pros about the new Good Faith Estimate -

• The new Good Faith Estimate does have standard sections that a borrower can compare easily with other good faith estimates.  The negative about this?  That the borrower will just see a total of the charges and it won't be broken down. This could be a great way for lenders to disguise higher so-called junk fees.  I will be breaking this down in part 2 tomorrow.

• The new GFE will have a summary section on page 1, that gives you specific details about your loan. Making you aware if your interest rate will rise, if your loan has a pre-payment penalty, or even a balloon payment.  I think this part is excellent and should have been mandatory decades ago.

The Cons about the new Good Faith Estimate -

HUD made this statement on November 12th, 2008. "New 'Good Faith Estimate' will help borrowers save nearly $700"

Is this true? Or could it cost the borrower more money?  In regards to items below, I will be going into details in Part 2.

• There is now a block that shows the total costs to the borrower.  It just gives you a total amount of your settlement charges. In order to find your total amount, you need to look on Page 3 of the application.

• The total monthly payment is not disclosed to the borrower. It will only show you the principal, interest, and if there is mortgage insurance. Found on page 2 of the application.

• There is no signature spot on the new good faith estimate.  "well Mr. Borrower, I gave it to you, you must have lost it."

• The lender is now bound by what ever is disclosed on the new good faith estimate. Because of this, I have already seen some lenders over-estimate some costs, just so they aren't eating the difference. I find this to be a huge problem. Keeping in mind that each state is different when it comes to specific settlement costs and what are mandatory to be shown on a good faith estimate. A good example are transfer taxes paid by the borrower. If the lender is short on these charges, the lender must eat the difference.  So once a GFE is issued, the mortgage originator is bound by these costs, unless there is a "changed circumstance" or the GFE "expires". This will be further explained in part 2.

• As mentioned in the pros section, the costs aren't broken down.
  

What is not allowed anymore !!!

This comes directly from HUD - New RESPA rule FAQs

33) Q: Can loan originators charge fees prior to issuing a pre-qualification or preapproval?

A: No. HUD has long supported a public policy goal of creating a circumstance where consumers can shop for a mortgage loan among loan originators without paying significant upfront fees that impede shopping.  Loan originators may not charge consumers anything more than the cost of a credit report prior to issuing a GFE.

This was already disclosed in the Mortgage Disclosure Improvement Act (MDIA).

Summary :  In my opinion, I just think that the government got to involved and this could possibly make mortgage shopping more difficult and more expensive.  I will try to break down the details in part 2 to better explain these changes.

Good Faith Estimates Explained - FHA Loan Good Faith Estimates - Understanding the whole process - Part 1 of 2

Good Faith Estimates Explained - FHA Loan Good Faith Estimates - Detailed changes - Part 2 of 2

UPDATE : As of February 23rd, 2010 - I will be posting my part 2 tomorrow.... and

Larry Bettag has further discussed some of my disappointments in this post.  Please read :

It's Official, the New Good Faith Estimate Hurts the Consumer and the Industry!

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

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

Copyright © 2010 by Jeff Belonger of Infinity Home Mortgage Company, Inc

Nevada Trails January 2010 Real Estate Resale Market Report (Homes For Sale, Pending, Sold):

• Listings (2/15/2010):  25
• Under Contract (2/15/2010):  50
• Sold January 2010:  11
• Month's Inventory:  2.3

Since Last Month:  Listings are UP +1, Pendings are UP +1, Closes are UP +1

Last Month's Nevada Trails Market Report

Click here for More Information on Nevada Trails Living.

www.lasvegasmtg.com Report: What every Realtor should know about the FHA Changes in effect and the legislative changes being requested. Due to losses that occurred from legislative changes in 2003 when both houses of Congress proposed and passed the Down Payment Assistance Program the necessary funding required by law to cover defaults is now below the mandated 2% requirement.

This January 2010, FHA announced the changes that will take effect in staged time frames for the public and industry to digest and hopefully not impact the recovery of the housing markets. 

1. FHA is now requiring the "Funding Source" or Lender to show net worth of $1,000,000.00 in assets up from the $250,000.00 previous requirement.

2. Will require the Financial Audits annually of lenders instead of every two years.

3. Lenders performance will be rated and can be followed through Neighborhood Watch.

4. Minimum FICO Score 580 required now with 3.5% down. FICO Scores below will be required to have 10% down.

5. FHA 90 day Flipping Rule is waived for 1 year effective 02/01/2010 till 01/31/2011. Price of home cannot exceed 20% of  original purchase price unless it meets strict guidelines. Must be true Arms length transaction with no identity interests between buyer and seller.

6. February 12, 2010 all FHA Case numbers ordered after this date will have to order the appraisals through a HVCC system.

7. April 5th, 2010 the UFMIP will increase from 1.75% to 2.25%. This can still be added into the loan, same as before.

8. Summer of 2010 Sellers Concessions will be reduced from 6% to 3% in a effort to keep properties from being inflated at time of the appraisals to allow the higher concessions.

9. FHA is seeking Legislative policy changes for the following: Higher Annual Premiums for MIP. Tighter enforcements of FHA Lenders.

Summary of the new and proposed changes:

1-3. Will cause greater Underwriting scrutiny on all files and more conditions, longer reviews, more declines if not properly reviewed by the loan officer at time of the application process.

4. Will have very little effect as Lenders investor overlays are far more conservative at 620 then FHA proposed minimum FICO scores set at 580.

5. Will allow more homes to be available for purchase using FHA as a loan option.

6. Will cause some delays initially until the bugs are worked out.

7. Will cause higher costs but will be financed over 30 years, eliminating the initial impact to consumers. Raising costs per month by a few dollars on the average FHA loan of $125,000.00.

8. Will have a greater impact to the consumer as the 3% of sellers concessions will not be enough to cover all of the prepaid and closing costs. Will require more funds from the buyers at closing or higher interest rates so lender can credit closing costs.

9. Will cause a higher payment amount monthly and will reduce the amount of purchasing power for the buyer.

Las Vegas Nevada FHA home loans rates are still very low, but the Fed has announced that it will stop buying mortgage backed securities at the end of March which could cause mortgage rates to rise by .5% to 1% more.

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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Sorry for thesse reports being back to back, I forgot to post December's reports!

Summerlin January 2010 Real Estate Resale Market Report:

• Listings (2/15/2009):  679
• Under Contract (2/15/2009):  599
• Sold January 2010:  109
• Month's Inventory:  6.2

Since Last Month's Report:

• Listings UP +30
  
• Pendings UP +47
  
• Sold Units DOWN -57
  

Last Month's Summerlin Report

Most Current Summerlin Market Report

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

Sun City Aliante is located in the Aliante Area of North Las Vegas, NV (zip 89084).  There are 1829 homes in Sun City Aliante ranging from 1157-2104 Square Feet.  Community Amenities Include:  Community Golf, Clubhouse, Gym, Pool, Spa, Tennis, Recroom.

Sun City Aliante Market Report:

• Listings (2/15/2010):  47
• Under Contract (2/15/2010):  33
• Sold January 2010:  5
• Absorption Rate: 9.4 Months of Inventory

Sun City Aliante is currently enjoying a buyer's market.

Since Last Month's Report:  Aliante Sun City, North Las Vegas Listings UP +1, Contracted Homes UP +3, Sales NO CHANGE

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 North Las Vegas Sun City Aliante Report

For Most Current Sun Cities Market Report Click Here

The current mortgage and housing meltdown has been particularly brutal to property owners here in Southern Nevada, home to communities like Henderson, Silverstone Ranch, Anthem, Summerlin, Southern Highlands and Mountains Edge. Nevada has held the lead in most foreclosures by any state for months and that statistic is heavily influenced by Las Vegas valley, the most populous area in the state. Many of those who are still in their homes are often in some stage of the foreclosures process, trying to do a loan modification or have started a short sale campaign. Scores of others are hanging in there, but are trapped because being underwater - the home's value is less than the underlying mortgage - prevents them from selling or even doing a refinance. No one could have imagined that things in the Vegas real estate market could get this severely tangled.

Washington has tried many remedies to help the national housing market, with less than stellar results. It just announced another effort in that regard, this time a more focused one. The new foreclosure-prevention program just announced by President Obama is giving money to the most-affected states - Nevada, Arizona, California, Florida and Michigan - to help them deal with the still roiling housing tsunami. The money, $1.5 billion, comes from the Troubled Asset Relief Program, or TARP, that is being phased out. The basic guidelines are to help homeowners who are either unemployed, are underwater or have second liens that prevent them from doing anything useful. Other than that, each recipient can shape up its own program, so it appears there aren't too many strings attached.  

At this point it's unknown how much of the largesse Nevada is going to get. Obviously the initiative isn't going to reach everyone who could use it, but it can make a rather substantial impact on the foreclosure front in the Las Vegas valley. Those mortgage borrowers who have already lost their homes are unhappy that they weren't offered anything like this. The ones that are now doing a short sale, a home loan modification or are in a pending foreclosure situation might qualify for this, although the specific guidelines have yet to be announced by the housing agency handling this program in Nevada. Still, it can help firm up the base for the state's real estate market and prepare it for a tentative recovery.