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

Conventional, FHA and VA mortgage loans in Phoenix may soon become harder to obtain for those with a troubled credit history. Currently, a borrower with up to $5,000 in collections may still eligible to purchase a home in Phoenix, in many cases. The new guideline change could also affect current Phoenix home purchase transactions you may have in process. 

The following policy change was announced from U.S. Bank Home Mortgage, specifically relating to the Correspondent Lending Division's Underwriting policy for all loan products including FHA, VA and Conventional loans.

Collections, Charge-Offs, Judgments, Garnishments and Liens:

Delinquent credit must be paid off at or prior to closing. This includes taxes, judgments, collections, charged-off accounts, tax liens, mechanics' liens, and liens that have the potential to affect US Bank's lien position or diminish the borrower's equity.

Documentation of the satisfaction of these liabilities, along with verification that there were funds sufficient to satisfy these obligations, must be included in the underwriting file.

Per the US Bank memo, this policy will be effective Monday, October 4, 2010, for all loans submitted for underwriting to a USBHM Underwriting Center, for MI Contact Underwriting and loans submitted for purchase by their Delegated Correspondents.

All collection accounts (including medical collections) and charged-off accounts do not have to be paid off at or prior to closing if the total balance of all accounts combined is $1,000 or less. No minimum monthly payment has to be included in monthly debt unless one has been set up and the borrower has been paying a set amount.

Collection accounts or charged-off accounts that exceed the above $1,000 limit in combined balances do not have to be paid off at or prior to closing, provided all of the following are documented:

1. A strong credit profile
2. Meaningful financial reserves
3. Evidence that the accounts pose no threat to our first mortgage lien

This announcement is not industry wide, but specifically relates to loans delivered to US Bank Home Mortgage through Correspondent Lending. US Bank Home Mortgage is known as one of the more conservative residential lenders, sometimes coming out with guideline changes up to 6 months before other lenders. This memo also doesn't insinuate that all lenders will change the guidelines they use to underwrite, rather with the tightening of the market, there is possiblility. However, if this does become more prevalent your clients will become frustrated that they didn't have adequate time to prepare additional cash reserves, you will have to cancel your Phoenix home purchase contracts and your real estate career will suck. 

Coronado Ranch August 2010 Real Estate Resale Market Report (Homes For Sale/Pending/Sold):

• Listings (9/15/2010):  36
  
• Under Contract (9/15/2010):  30
  
• Sold August 2010:  13

Since Last Month:  Listings are UP +10, Pendings are DOWN -12, Solds Units are UP +6.

Last Month's Coronado Ranch Market Report

View Coronado Ranch Homes For Sale Here (Updated Daily)

More Information on Coronado Ranch Real Estate Here

More Las Vegas Communities Here

America's 10 most expensive zip codes

Forbes released its annual list today of the nations most expensive zip codes, and is anyone really surprised to see California have 6 of the 10? Enjoy!

1. 91008 - DUARTE, CALIFORNIA - Median Home Price: $4,276,462
2. 94027 - ATHERTON, CALIFORNIA - Median Home Price: $4,010,200
3. 90274 - ROLLING HILLS, CALIFORNIA - Median Home Price: $3,892,456
4. 07620 - ALPINE, NEW JERSEY - Median Home Price: $3,814,885
5. 10014 - NEW YORK, NEW YORK - Median Home Price: $3,785,445
6. 90210 - BEVERLY HILLS, CALIFORNIA - Median Home Price: $3,684,150
7. 10065 - NEW YORK, NEW YORK - Median Home Price: $3,626,001
8. 94920 - BELVEDERE, CALIFORNIA - Median Home Price: $3,283,269
9. 10012 - NEW YORK, NEW YORK - Median Home Price: $3,221,371
10. 93108 - SANTA BARBARA, CALIFORNIA - Median Home Price: $3,151,220

Obviously some of these cities have such small populations and so few homes have sold that the stats are a bit misleading, but overall, this data appears pretty accurate.

As many of us know and realize, the National Flood Insurance extension was going to end on September 30th, 2010. Well, it has finally been extended until September 30th, 2011.

Most reports online are reporting that the Senate has approved the extension and that they are awaiting on the House to approve the Bill.  But there were no news updates on what happened with the house, at least from what I could find.

Well, here is the official time line on both the Senate and the House approving the Flood Extension until September 30th, 2011. Please read : Bill Summary & Status -

This is great news because not only has it held up many settlements in the past, and not knowing what would have happened this time around, but that the Hurricane season usually goes into November. If anything major would have happened, who knows the extension messes that would have been created.  Hey, it's been passed, just waiting on the President's signature.

Self employed borrowers applying for a mortgage loan can get frustrated because many loan officers do not know how to accurately read tax returns.

Fannie Mae is the largest purchaser of conventional mortgage loans.  Since stated income loans no longer exsist it's important to know their requirements.

Here are the guidelines from Fannie Mae:

Income from self employment is considered stable, and effective, if the borrower has been self employed for two or more years. 

Due to the high probability of failure during the first few years of a business, the requirements described below are necessary for borrowers who have been self employed for less than two years.

If the period of self employment is between one and two years:  To be eligible for a mortgage loan, the individual must have at least two years of documented previous successful employment in the line of work in which the individual is self employed, or in a related occupation.

Note: A combination of one year of employment and formal education or training in the line of work in which the individual is self employed or in a related occupation is also acceptable.  If less than one year then the income from the borrower may not be considered effective income. 

Speaking of income, the method for calculating self employed income is much different than that of a wage earner.  Failure to calculate income correctly can cause your loan to be denied by an underwriter.

Self employed borrowers need a company with qualified loan officers that know how to read self employed tax returns and make a determination of your eligibility before you pay for home inspections or appraisals.  Look no further because we can help!

Las Vegas Area July 15, 2010 Active Listings by Type

• REO:  2859 (20%)
• Short Sale:  6846 (49%)
• All Other:  4382 (31%)

June 2010 Sales by Type:

• REO:  1586 (45%)
• Short Sale:  1073 (31%)
• Other:  859 (24%)

This is just a guide for consumers to see what types of properties are closing vs what is listed.  Currently we have the most closes in the REO sector and the least inventory in the REO sector and it is an extreme seller's market.

Click here to see last month's Listing and Sales Type Report

Click here to view the most recent stats

What Areas Do You Cover for your Las Vegas Area Real Estate Market Reports?

General Las Vegas Area Real Estate Market Reports are for MLS Areas 101-605 (the average consumer probably asks, what’s that?)  It means that I cover the cities of Las Vegas, Henderson, North Las Vegas including unincorporated Clark County Townships of Whitney, Paradise, Winchester, Enterprise, Sunrise Manor & Spring Valley.  They do NOT cover the areas of Boulder City, Pahrump, Laughlin, Moapa or Mesquite.

View More FAQ About My Las Vegas Area Real Estate Market Reports.

Original Source: Why Short Sales Fail And How To Avoid Short Sale Denial

Short sales are complicated, time consuming, and stressful to all parties involved. Depending on the bank you’re dealing with, it could take up to a year for a final approval on a short sale.

The fact that it takes so long makes it that much more difficult to find a buyer who is willing to wait months before they know if they can even buy the home.

In 2009, it was believed that only 20% of short sales were approved and finalized. That stat tells you, getting a short sale approved is not easy for anyone, let alone someone who is inexperienced. Plain and simple, many short sales fail to be finalized, and here are the common reasons why.

Why Short Sales Fail And How You Can Avoid Short Sale Denial

Incomplete Or Fraudulent Short Sale Package – A short sale package is submitted to the lender when you receive an offer and accept it. The short sale package must be complete with everything the bank requires.

If it is not complete, it could delay the process. Many of the lenders out there won’t even call and tell you what’s missing. They will set the package aside and it will be handled later when they have the time, which will end up delaying the process, and you could end up in foreclosure because of it.

All information in your short sale package better be true or you can kiss your short sale approval goodbye. One example would be to lie about your financial situation. Hiding money in different accounts, pulling out cash to hide it from the bank, or giving money to relatives to hold onto during the short sale could end up costing you big time. Banks do not have to approve your short sale. If they find out you’re not telling the whole truth, you will be denied.

Short Sale Package Not Submitted Properly – All lenders are different and they each have their own protocols when dealing with short sales. Your agent must submit the package exactly how your lender requires it.

If they want it faxed, it better be faxed. If they want it scanned and emailed, it better be emailed. If they want 10 copies, they better get 10 copies! How a short sale package is submitted isn’t you or your agents decision. It’s the lenders, and it better be followed to the T!

Offer Too Low – It is the job of your agent and you to secure the best possible offer on your property when submitting it to the bank. Each lender has their own formula for accepting offers, but one thing they all agree on is getting the most money possible.

It is the job of your short sale agent to give you an accurate analysis of the market and the value of your property. It is their job to counsel you to counter any offer to establish the best price and terms possible prior to accepting it.

Buyer Not Financially Strong Enough – Lenders want to see contracts that have a strong chance of closing. A pre-qualified buyer is not as strong as a pre-approved buyer. It is your agents duty to follow up with the buyers lender, or even better, you may want to have a lender you trust qualify the buyer as well.

If it’s a cash buyer, you will need proof of funds and proof of the ability of the buyer to access those funds in the time needed to close.  Any contingency in the contract could end up costing you the deal. It is best to remove as many contingencies during contract negotiations as possible before submitting to the bank.

Buyer Backs Out – This is probably the number one reason short sales fail. Buyers get tired of waiting, or they find a better house and back out of the deal.

This can be avoided by asking for a substantial earnest money deposit prior to acceptance of the contract. If the buyer has more skin in the game with say a $5,000 earnest money check, they will be more reluctant to give that up.

Your agent should counsel the buyers agent, or the buyer themselves, on how long short sales typically take to close. Keeping the lines of communication open on a weekly basis between your listing agent and the buyers agent can help keep the deal together. Buyers tend to stick around longer, at least in my experience, if they know what’s going on at all times.

Inaccurate Market Analysis/Appraisal/BPO – If  the BPO (Broker Price Opinion) was inaccurate, it could delay the closing. Lenders request BPO’s on short sales that are completed by third parties, whether it’s another real estate agent or an appraiser. Inaccuracies could give the lender a distorted view of what fair market value of the property is, this could influence the lender’s approval.

It’s important for your short sale agent to to ask the negotiator how the BPO compares to their market analysis. If your agent believes there are discrepancies with the BPO, it’s important for them to prove their point of view. Adding photos, better comparable properties, and any other information to support their claims.

Incompetent Short Sale Agent – To avoid having your short sale denied, it’s extremely important to hire a Realtor that knows what they’re doing. Inexperienced and incompetent short sale agents should be avoided with one of the most important financial decisions you will ever make.

Some sellers end up facing foreclosure due to the lack of effort from their agent, and it’s a terrible situation for all parties involved.  Research real estate agents thoroughly before hiring them. Do not use a friend because they are your friend. You could end up going into foreclosure do to the lack of experience of a new short sale agent.

Don’t Let Your Short Sale Fail! Educate Yourself And Choose An Experienced Short Sale Agent!

When short sales fail, it’s the homeowner left holding the bag. Most likely, the homeowner will go into foreclosure, which is the last thing anybody wants.

Foreclosures devalue neighboring properties, cost banks tens of thousands of dollars, but most of all; a failed short sale will ruin your credit for 7-10 years, will cause you to lose your home, and will severely limit your access to credit for many years to come.

Please research short sale agents, put together a full and accurate short sale package, and follow all lender protocols when trying to short sale your home. If you do everything you can to avoid these common mistakes, you have a great chance for a short sale approval!

Related Articles:

Short Sale Investors Committing Fraud?

Common Short Sale Questions Answered

The Short Sale Process – Approval Time Frame – Withdrawal Period – Writing A Short Sale Offer

The current real estate meltdown has been a true testing ground for anyone involved in its devastating turbulence. Homeowners have watched helplessly as their property values have headed south with little resistance. Home loan providers have worked under pressure for years to stay afloat in choppy waters full of creepy icebergs and many other deadly maritime hazards. Real estate agents are fighting to secure deals in a marketplace shrunk to a flat pie on life support from a full-blown strawberry cheesecake. The support industries are in it as deep as anyone else.

Something intriguing that could be rather meaningful for many in housing is in the works right now. Namely, the U.S. House just introduced a bipartisan - yes bipartisan, for change - bill that would require mortgage providers to come up with an answer to short sale requests within 45 days. It's common knowledge that mortgage banks usually take their sweet old time in reaching a decision on them. Sometimes they can't even make up their minds at all, ever, no "yes" or "no" at all, just deafening silence or bureaucratic runarounds until participants just give up, throw up their arms in disgust.

Underwater - the mortgage balance is higher than the property's value - homeowners would be big beneficiaries here. They would be informed in 45 days whether a short sale will work or not and then make plans for their next move regardless of the answer. Now they often don't know anything for months and many finally just decide to walk away from the mortgage. Failed short sales are one of the main reasons to climbing walk-away numbers.

First-time home buyers as well as other purchasers would get a much faster response to their offers, helping them with their strategies. The attitude of scores of real estate agents would change for the better toward the frequently ridiculously lengthy and complicated short sale process. Actually, even the mortgage lenders themselves would come out ahead in this, as they would be forced to make a decision and move on.

The bill does have merit aplenty, and should be passed. Who says Washington can't introduce useful housing legislation? Since the private mortgage sector was unable to satisfactorily act on this, the oft-maligned government stepped up to the plate with a well-designed bill that would yield nice dividends for the entire housing industry. 

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

• Listings (9/15/2010):  316
• Under Contract (9/15/2010):  314
• Sold August 2010:  72

Since Last Month:  Listings are UP +39, Pendings are NO CHANGE, Sales are UP +10

Last Month's Mountain's Edge Market Report

View Mountain's Edge Homes For Sale Here (Updated Daily)

More Information on Mountain's Edge Real Estate Here

More Las Vegas Communities Here

There are just so many questions in regards to mortgages of which consumers and realtors search for places to ask such questions. My problem from searching the internet is that I have seen some really bad, false, or misleading answers to such questions. Sometimes even answered by those that aren't even in the mortgage business. I have seen this happen so many times on sites such as Trulia and or Zillow. These sites allow anyone to answer mortgage related questions. But how great would it be to have one place where such questions are answered only by a handful of mortgage professionals. 

CLICK ME

The Mortgage Myth Busters is a good group of Mortgage Professionals that have over 150 years of experience in the mortgage industry. If we don't know the answer rigth away, we will gather the correct information to give the right answer or set of answers. We are passionate about this and take pride in ourselves in putting the correct information out there. One problem that I see often is that someone's opinion is mistake for a fact, because it's not mentioned as an opinion.

If you have any mortgage related questions as a consumer or as a realtor, then can be asked in our questions forum @ Mortgage Myth Busters Questions Forum -

You can also ask questions here :

Our Facebook Fan Page : Mortgage Myth Busters on Facebook

Mortgage Questions Group on LinkedIn : Mortgage Myth Busters Questions Group on LinkedIn

Mortgage Myth Busters group description :

The Mortgage Myth Busters is a group of experts from different companies all over the country that share the commitment to provide consumers with the right answers to their real estate finance questions. Our unique approach of collaborating and combining forces enables us to provide factual mortgage information and invaluable insights especially during these trying times.

Our purpose is to educate and assist the consumer in navigating the often confusing process of obtaining financing. It is our goal to dispel the confusion, myths, and lies that surround the real estate and mortgage industry. We do this in hopes of earning your trust and eventually your business.

Conclusion : Thoughts?  Opinions?  Feedback? 

On a side note, some time in the future, we will have selected realtors from different states that will be answering real estate related questions also.  thanks

Want a perfect landing for your Las Vegas Real Estate transaction?  Call or email today to schedule your free Las Vegas buyer or Las Vegas seller consultation!

Slow Markets and Charlotte Homes - Bring the Two Together - Close the Sale

Today’s slow real estate market can be a difficult time to sell Charlotte homes.  However, the fact remains that homes are still being bought and sold every day.   Buyers are out there; your mission is to attract them to your home.

Here are a few tips for getting Charlotte homes sold in a slow real estate market: 

Prepararation - Your home needs to stand out from the rest, including sparkle and shine:

    •    Make minor repairs:  Patch holes, fix faucets and replace cracked tiles.
    •    Clean thoroughly inside and out:  Including cobwebs, dirty carpets, worn rugs and getting rid of any smelly odors.
    •    Check your curb appeal:  Mow the lawn, plant flowers, trim bushes, etc.
    •    Remove clutter and de-personalize:  If it isn’t essential, pack it up or get rid of it, keeping in mind that eventually, when your home sells, you’re going to have to pack it up anyway!
    •    Straighten your cabinets and closets:  Buyers will open them; make sure they’re nice and neat.

Staging -  Hire a professional home stager or if money is tight, read informational home staging articles on doing it yourself. Here are a few quick tips:

    •    Carefully choose your window coverings, or eliminate them.
    •    Tie new bathroom towels with ribbons or cording for a polished bathroom look.
    •    Use colors to bring out the appeal in the room.
    •    Don’t forget the plants.

Good Marketing Techniques - A strong marketing campaign is a must.  A few techniques you want to be sure you or your agent includes in your marketing campaign are:

   •    Take photographs with good lighting that show off the positive aspects of your home.  If you or your agent aren’t ‘into’ photography, hire a professional--well worth the money you will spend to showcase your home online.

    •    Create a virtual tour that showcases both the inside and outside of your home.
    •    Display the photos and virtual tour on as many real estate websites as possible. 

Selling Charlotte homes isn’t a quick or easy endeavor, especially now.  Aggressive marketers are the winners.  Taking the time to clean and stage your home, as well as create a far-reaching marketing campaign, can get that for SOLD sign displayed much quicker.

If you’d like to sell your home, let me create a strong, far-reaching marketing campaign to get your home SOLD.   Give me a call email me today.

 

      

  Charlotte NC Homes for Sale

 (THE best Charlotte home search available - no kidding!)

Debe Maxwell, CRS/Realtor®/Broker
Broker@TheCharlotteScoop.com
Phone (704) 491-3310

     

  

 

    

      

       

 

         

   

Disclosure of material contained within.

Key Reminder - You don't need 700 credit scores and 20% down to buy

Figuring out the differences between renting vs buying a home can be stressful. I gave you some pros and cons of buying a home in Part 1. Things seem good, because you are learning how to break this down. That's great......

Tip : Keep your focus and don't be talking to too many people outside of the loan officer that you are speaking with. That's if you have picked one by now. And by this, I mean don't ask in depth questions to your parents, friends, neighbors, etc, etc. It could get confusing.

There is a reason for this. Programs change often and so does the way of financing. The biggest thing, mortgage rates can change daily!  What your friend received last week might be totally different the following week.

• This may sound simplistic, but first and foremost you should find  a neighborhood and a home that you just plain like.

Number Crunching

Keep in mind that while home ownership provides security, it almost certainly won't give you the returns provided by equities. If history is any indicator, you can reasonably expect an 6% to 8% annual gain on your stock portfolio. Home prices, on the other hand, typically follow the rate of inflation over the long term which is usually 3% appreciation. Ignore what happened the last 3 years. In the scenario below, I only used a 1% appreciation increase. Hence why it is sometimes good not to put as much down when buying your home. Your loan officer should be asking you about your goals when talking to you. Don't work for your home, let it work for you.  And a loan officer should always be asking you what mortgage payment that you would be comfortable with, your maximum payment.

• Jeff Belonger's top 10 questions.

The scenario below is on a FHA loan and is based on a $225,000 purchase. The rent payment used is $1,100.

Here are the reults....

As you can see, your mortgage payment would be about $651 more a month then what you are currently paying for rent. Keeping in mind, each market is different when it comes to monthly rents and home values.  This is just an example.  But the end result shows if you were to rent for 5 years, that if you bought and kept the house for 5 years, that you would come out ahead.  Buying in this scenario is better.

Post Purchase Tip :  After you buy your home, just be careful of property scams!!!  

***Important info : There are many types of rent vs buy calculators. Not all of them are accurate because there are several factors involved.*** 

In regards to Part 3, I will give you examples of the different types of programs for those with money saved, no money saved, and those with less than perfect credit.

• Renting vs Buying -- Understanding & knowing the difference -- Part 1 of 3

• Renting vs Buying -- Showing the difference in payments -- Part 2 of 3

• Renting vs Buying -- Knowing your loan options & what it would take to buy -- Part 3 of 3

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 (9/15/2010):  150
• Under Contract (9/15/2010):  57
  
• Sold August 2010:  27

Since Last Month's Report:  Listings UP +9, Contracted Escrows DOWN -16, Solds UP +2.  Sun City Anthem is currently enjoying a stable market.

For Current and Past Sun City Anthem Market Reports

View Sun City Anthem Homes For Sale Here (Updated Daily)

More Information on Sun City Anthem Real Estate Here

More Las Vegas Communities Here

I know it's been all over the news since the 20th of September, that we are now out of a recession since June. But I am curious, where the hell have I been all of this time. Who is stating these facts?  Did we just pull millions of dollars magically out of a hat?

Let's look at several facts.

--  We are going into an election period.  So is this just 'feel good' talk to get one to think otherwise?

--  The Homebuyers Tax Credit.  In my opinion, that artificially stimulated the economy. But that helped some real estate numbers look good, like there was a real recovery.

--  Jobs? Sure, some jobs have been created, but within the government and this could add to the free spending that has taken place. So how has that helped. What about those small businesses that keep laying off or close shop.  Just some ideas for food for thought.

--  Foreclosure numbers keep rising and mortgage modifications not only become more difficult, but 50% or more that are helped, fail 6 months later.

If you don’t want the truth or face the facts, don’t continue reading.

So let’s define recession. All definitions below are from wikipedia.  “A recession in economics is a business cycle contraction, a general slowdown in economic activity over a period of time.” There seems to be two strong definitions of recession outside of what was just mentioned.

• The main rule of thumb, which is simply defined “as a period when GDP falls (negative real economic growth) for at least two quarters. The GDP is the measure of a country’s overall economic output.”

• Then you have the NBER, the National Bureau of Economic Research, who is generally seen as the authority for dating U.S. recessions. The NBER states a recession “as a significant decline in the economic activity spread across the country, lasting for more than a few months, normally visible in real GDP growth, real personal income, employment not to include farm payrolls, industrial production, and wholesale-retail sales.”

Here is what scares me the most. Back in mid 2007 to early 2008, I had written several times which can be documented that we have been in a slight recession since early 2007.  But look at this. It wasn’t until December 2008 that the NBER stated that the recession had started one year earlier, in December 2007.  Here is a good article from MSNBC,  ‘Great Recession’ over, research group says.

So here is the main question at hand. What or who actually determines when we are out of a recession?  Glad you asked, because it seems to be based on more of a thought process than in general terms. What specific numbers that look good in a month or two, when in reality, the overall picture is not good. And common sense?  My common sense tells me that it's not getting better.  Read along....

We don't want bad news, that is all we hear. We hate doom and gloom. But if we don’t know about it or think things are better just because we are told so, how does one fix the problems that we face now as a country?  I certainly don’t want to be sweeping this under the rug, just because it’s been determined that we are now out of a recession.

What should be very important and talked about most, right now, so we can move forward?

• Unemployment/jobs – What happened to this so-called stimulus package in May 2009 that was going to stimulate jobs?  The only jobs I truly saw created were those within the government.

• Small businesses – we need to keep focus on helping the small business not fail. In my opinion, without small businesses, it will hurt our economy greatly.

• Real Estate – Home values have plummeted in many areas. We are still seeing more and more foreclosures and over 50% of those that get mortgage modifications, fail on their payment plans 6 months after.

• Wall Street – It’s been a yo-yo for the last 12 months, with hardly any consistencies. Up 100 pts, down 100 pts. People are afraid to invest. Many would rather keep the money under their mattress.

Mark Zandi, chief economist at Moody’s Analytics, made this statement. “It was noteworthy that the panel settled on June, as it was during that month that the spending from the Recovery Act stimulus was at its maximum.”

In my honest opinion, I think nothing should have been said, because every month I see specific numbers fluctuate up and down. I didn’t graduate Harvard with an MBA in Economics, but from talking to so many on the streets, seeing it daily with my own two eyes, small businesses going out of business, we have a ways to go. Why try to make us feel good with such a statement, based on numbers that keep changing, or indicators that can be manipulated.  Could this just be a political spin because of the upcoming elections?

There needs to be a call to action and that Main Street America deserves more than just some ‘feel good’ words. How can we help?  Your vote means more now than ever before, this coming November. It’s a start and we need a fresh start. We need to think this through and all come together. What do you say?

Lewis Poretz even wrote about this and stated all of what I stated in simple terms.

Will the second dip be worse than the first?

Myrl Jeffcoat gives an excellent quote from Charles Dickens at the end of her post... please go and read it.

The Recession is Over – But Is it Really?

Here is some more news... Durable goods orders fall 1.3% in August, missing expectations 

Just more reason why I think, again, that we jumped the gun in stating that the reason is over....

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

• Listings (9/15/2010):  25
• Under Contract (9/15/2010):  53
• Sold August 2010: 6

Since Last Month:  Listings are UP +5, Pendings are NO CHANGE, Closes are DOWN -5

Last Month's Nevada Trails Market Report

View Nevada Trails Homes For Sale Here (Updated Daily)

More Information on Nevada Trails Real Estate Here

More Las Vegas Communities Here

Have you ever seen anyone drive by your home slowly and take a picture of your home?  Wouldn’t that be creepy?

It happens quite a bit and for different reasons:

• Sometimes when your insurance policy needs to be updated
• Sometimes when an appraiser is using your home as a “comp”  (or comparable) and there isn’t a good exterior photo available in public records
• Sometimes a Tax Assessor may need to update the file
• Sometimes when the home is in default, being sold as a short sale, or the lienholder needs to “update” a file a BPO is ordered

A BPO is short for a “Broker Price Opinion”.  Basically a BPO comes in two forms:   interior or exterior (commonly known as “drive by”.)

Interiors are commonly ordered for pre-list REO second opinion pricing, deed in lieu of foreclosure or a short sale.

Exteriors (the “Drive-By”) is commonly ordered for short sale, default and simply updating a file.  Please NOTE:  You do not have to be in default to have an exterior BPO ordered.  I do not want tenants paranoid or freaking out about this!  Here is a short tutorial on how to find out if a Las Vegas Area home is in default.

Our goals are different from appraisers.  Appraisers value the property and BPO agents formulate marketing strategy and analyze a list price for the home in today’s market.

Most BPOs are ordered from third party systems and we do not (generally speaking) receive orders from the lienholder or investors themselves.

Please feel free to ask questions about this process if you have any!  I have performed close to 2000 BPOs since 2007 and I just wanted to let potential occupants of these homes know what is going on with this tutorial.  Back in 2007 most homes were unoccupied but since this past spring many of the homes ARE occupied.

When you see me (or us) there is no need to panic, we are not here to “take your home” nor are we here “casing it for burglary”.  If you are curious why you may have been subject to the BPO, call your mortgage servicing company or your insurance company before you call the cops!

The other day, I got a call from a prospect who asked about Fannie Mae's HomePath program and wanted to know if I offer it.  I answered I did and immediately went into my "HomePath speel" of where I educated the prospect about the benefits and challenges of this particular loan program. 

Then he indicated that he saw a property he liked and wanted to buy it.  Something about the caller and the things he was saying got my red flag sensors up, which always prompts a barrage series of questions to learn what the prospect's true intentions are. 

I come to find out that the prospect has already been pre-approved for a loan with another lender and has been working with another MLO for several months.  Furthermore, the caller was already in escrow on a condo.  The reason he was looking for another lender is because his MLO wouldn't honor the pre-approval that he had previously issued to him several months ago. 

A few more questions later, I discover that the approval was based on an SFR with no HOA's and that it was for a standard FHA loan product and not a HomePath loan for a condo.  Needless to say folks, comparing pre-approvals for these two loan products is akin to comparing apples to oranges. 

When I explained the differences between pre-approvals for these two loan programs and explained why the MLO probably couldn't honor the pre-approval he had issued, the caller became upset and refused to see or try to understand the differences. 

Furthermore, when I looked up the complex of where the condo was listed, not only was it not on the FHA approved condo list, it also wasn't on the Fannie Mae approved condo list.  Yes folks, that's right, Fannie Mae has their own approved condo list. 

When I tried to explain to the caller why he wasn't going to be able to buy a condo in this complex regardless of what kind of loan program he used, he started ranting and raving about why would HomePath advertise their "First Look" program as an advantage for people to buy if no one could get a loan.  

Well folks, he had me there; I didn't have an answer to his question.  Having run up against this issue before about why the condo complexes where Fannie Mae has HomePath condos for sale are not on the Fannie Mae approved list, I've always been told to request to have it added and they will see if it qualifies.  SEE IF IT QUALIFIES???  SERIOUSLY??? 

If they want owner occupieds, especially those using NSP funds (the whole purpose of "First Look") to purchase their "First Look" condos, the least they could do is put those complexes on their approved condo list. 

I informed the caller that even if his MLO could get Fannie Mae to include the complex he wants to buy in on Fannie Mae's approved condo list there is still the issue that he may still not qualify because the rates for the HomePath program are much higher than FHA rates and that the HOA fee does need to be included in his debt to income ratio and if it is over 45%, then he is going to have trouble getting approved.  I suggested he go back to his MLO and try to see if they could work something out about maybe getting an exception or perhaps structuring the loan a little differently. 

While I can certainly understand this person's frustration of having looked for a home to buy for several months and not getting any of his offers accepted until this condo and now he may have to start all over again, I tried to assure him that there are new properties coming on the market everyday and if he can just hang in there, he will eventually find something. 

As an MLO, I need to be able to offer this program to my clients and prospects but in doing so, I make sure they understand the challenges of this loan program besides the benefits, which are most certainly not free; borrowers pay heavily for these benefits.  

I am not a fan of this loan product, HomePath, and do not think it is a viable loan option for most buyers, at least not an affordable option unless it's pared with a down payment assistance (dpa) program.  However, the issue with this is that most dpa programs have their own condition overlays and requirements and it's been my experience that many HomePath properties are fixers.  

Until condo complexes start improving their standing, they are going to have more and more renters in those complexes and no one will ever be able to get a loan to buy a condo in those complexes.  

PMI is an insurance policy.  The letters stand for Private Mortgage Insurance.  This insurance policy pays a lender for financial losses in the event a home is foreclosed.

If you had a small down payment and foreclosed the lender would suffer huge losses. Homes with 20% or more in equity usually have enough money for a lender to cover expenses to sell a foreclosed home.  Conventional loans with a 20% down payment do not require PMI.

Why not just call it mortgage insurance?  The government also insures mortgages. FHA, VA and USDA loans are all insured by the US government.  Conventional loans are loans that are not insured by the government but rather private insurance companies. Private Mortgage Insurance only applies to conventional loans. 

Risk factors determine the basis point or BP used by MI companies to determine a monthly payment. The riskier a borrower is the higher the BP.  A higher BP means a higher PMI payment.

Example:  A 5% down payment may require 35% coverage. A 10% down payment may require 18% coverage.

35% coverage for someone with excellent credit will have a lower monthly payment than someone with fair credit.  To determine the payment we multiply the loan amount by the BP and divide by 12.

Example: 35% coverage on 250,000 fixed rate loan.  If credit score is 700 or higher the BP is .90  If credit is under 700 the BP is 1.07%.  View source

Loan amount 250,000 x (BP) .90 = $2,250 annually or $187.50 per month

PMI can be paid in multiple ways.  These are the three most common:

1) No up front premium with scheduled monthly payments. 

2) An partial up front premium is paid reducing the amount of the scheduled monthly payments.

3) The entire balance of scheduled PMI payments are paid in one lump sum resulting in no monthly payments.

PMI is a tax deductible expense.  However the IRS has rules regarding the PMI deductible so please speak with a qualified tax adviser.

Feel free to contact us with any questions you may have relating to PMI

The absorption rate for Las Vegas Valley Area Short Sales is finally seeing movement. Inventory has INCREASED by +702 units.  Under Contract has DECREASED by -453 units.    Sold units have DECREASED by -75 units.

There are many reasons for the lack of closings in this market and it is outlined in this post. 

Short Sale Synopsis:

• Listings 9/15/2010:  6846
  
• Pending 9/15/2010: 9372
• Closed August 2010: 1073

Short Sales Currently Account for:

• 49% of All Las Vegas Valley Listings
• 31% of All Las Vegas Valley Sales 

Read here for last month's report on Las Vegas Area Short Sales.

Most Current Market Report For Short Sales

What Areas Do You Cover for your Las Vegas Area Real Estate Market Reports?

General Las Vegas Area Real Estate Market Reports are for MLS Areas 101-605 (the average consumer probably asks, what’s that?)  It means that I cover the cities of Las Vegas, Henderson, North Las Vegas including unincorporated Clark County Townships of Whitney, Paradise, Winchester, Enterprise, Sunrise Manor & Spring Valley.  They do NOT cover the areas of Boulder City, Pahrump, Laughlin, Moapa or Mesquite.

View More FAQ About My Las Vegas Area Real Estate Market Reports.