Posts in category: Foreclosure

House money Many of the critical factors for a recovery in housing prices are in place. The drop in housing prices, coupled with the current low mortgage interest rates has brought affordability back into alignment with historical ranges in most markets. Unemployment levels appear to have bottomed out, and a growing number of real estate economic indicators also suggest that, on a national level, we’re also at, near, or just past the bottom of housing prices. Mortgage interest rates remain near all time lows. In many areas, today’s buyers have the best opportunity to choose from a very large home inventory at the lowest prices. Nonetheless, there is a great variance among local housing markets, and some may be looking at further declines in home values, perhaps even double digit drops, before prices hit bottom.

Consumer confidence will play a big role in any housing recovery. According to a June and July survey by Fannie Mae, 70% of Americans think it is a good time to buy a house, an increase of 6% responding to the same question in a similar survey conducted in January 2010. Not surprisingly, 83% also think now is a bad time to sell. Those surveyed are also becoming more optimistic about home values-78% think that home prices will either remain stable or increase next year-a 5% increase over the January survey.

Mortgage rates will also play a big role in the housing recovery. They are very low by historic standards today. Importantly, Federal Reserve policies intended to prevent a double dip recession are helping to keep mortgage interest rates low, and are likely to remain in place for some time. The slow recovery of the business sector, while not encouraging from an employment standpoint, also means that there will be less upward pressure on interest rates in the near future.

On the downside, the share of consumers who think housing is a safe investment has dropped from 83% in 2003 to 67% today. Delinquent borrowers and renters still think a home is a safe investment (57% and 54% respectively). More optimistic about the safety of a home investment were those with mortgages (74%) and even those with negative equity (69%). Minorities were also more optimistic on this question than the general population. Also not a big surprise, more people (33%) say they will be more likely to rent their next home, up from 30% in the January survey.

Recent forecasts about home sales and home prices have varied. Most suggest stabilization or near stabilization of housing prices this year, followed by a slight increase next year. On a national level, actual sales and price results have been mixed from one month to the next, suggesting that we may be at or near the bottom of home values.

Most important to your own home purchase decision is the current status of your local market. While at the national level there are many indicators that suggest that now is a good time to buy, the current state of your local market is the most critical consideration. In many areas there is even significant variance from one neighborhood to another. Some markets never got badly hurt by the real estate bubble and are still stable. Others, whether they suffered from price declines or not, are already showing signs of a healthy recovery.

Unfortunately, some of the hardest hit markets and/or neighborhoods are likely to face still more declines in housing prices. Mortgage insurer The PMI Group Inc. estimated recently that just over half of the 384 markets they follow, including 70% of the 50 largest metro areas, face a high risk of declines in housing prices over the next two years. Particularly in those markets, the size of the “shadow inventory”(foreclosed homes and nonperforming mortgages owned by lenders), could delay housing recovery, as could the growth in “strategic defaults” (homeowners who can afford to make their mortgage payments but who choose instead to walk away because they owe so much more than the home is worth).

Since homes tend to appreciate only 2-4% annually over the long term, it doesn’t make sense to buy right now if your area is at risk of dropping another 10-20% in value when you could rent the same home today for less than mortgage payments. The short term direction of housing values for current homeowners who are moving up or downsizing buyers is of far less consequence, because their homes market value will be similarly affected whether they stay in their current home or replace it with another. For them, current mortgage interest rates are far more important, and they strongly favor buying now.

While you may want to defer your purchase for any of these reasons, buying a home remains a wise long term economic decision for most of us:

1. Homes can provide an excellent return on investment (ROI). Although historic annual home appreciation rates are modest, the purchase is usually highly leveraged. If you put 10% down, a modest 3% annual increase in your home’s value represents a 30% ROI.

2. There are many opportunities to gain sweat equity. For example, a well landscaped home can be worth thousands more than a home with a barren landscape. You don’t have to spend that much to get such a return. Buy a shovel and a bunch of small $5-$20 shrubs and trees, and wait a few years. Do your own remodeling (or some of the finish work, such as painting and trim) and those projects can add more to your home’s value than they cost.

3. A landlord can (and will) raise your rent, but a lender can’t raise your mortgage interest rate (assuming that it is a fixed rate mortgage).

4. Many people pay off their mortgage by the time they retire. With no more mortgage payments, they are able to live comfortably on modest retirement income sources. The equity is also transferrable-many homeowners who move to different locales after retirement simply roll the equity from their old home into a paid off retirement home. A lifelong renter may well have paid more in aggregate for housing over their career, but they will still have to pay rent and many find that this additional expense severely cramps their retirement lifestyle.

5. Most owner-occupied neighborhoods have a sense of community that results from a relatively stable set of residents. That rarely happens in rental environments, where the residents of the neighboring apartments may come and go before you even meet them.

Key to a smart decision on whether or not to buy a home now is research into your current market outlook. There is plenty of research data on the Internet regarding the likely market direction of your area. Experienced real estate agents can also provide very useful local market insight.

If you are looking for a new home or wanting to sell your current home,  please contact a New Home Resource Realtor® today at 702-365-1000. Broker Joanna Piette, and agents Denise Moreno Thrasher, Jessica O’Brien, Evelyn ‘Beng’ Kern, Lance Partin and Kathy Paterniti are all here to help!

 

Courtesy of the American Homeowners Foundation and the American Homeowners Grassroots Alliance, www.AmericanHomeowners.org.

Reprinted with permission from RISMedia. ©2014. All rights reserved.

Happy Holidays!   There has been quite a bit going on in our marketplace today, from even further constraint in available housing, to increased NOD filings, to even higher sales prices in recent months.

A little bit of history……   In August 2009, Clark County saw a whopping peak of 11,482 filings of Notices of Default.    The filing figures remained steady around 4,000+/- per month, from 2010 through September 2011.    The October 2011 effective date of AB284 then caused filings to fall to less than 1,000 a month.

To clarify, the “need” to foreclose on a property did not change – what DID change was the bank’s ability to foreclose, due to the requirements of AB284.   You can read my blog post from earlier this year regarding AB284 to learn more.    According to the Board of Realtors®, foreclosures have fallen from nearly 50 percent of Las Vegas home sales to about 15 percent in October (we believe to be a direct result of AB284), and short sales now account for roughly 45 percent of the market.

As a result of AB284, default filings fell by as much as 80% through September, though the numbers have been growing over the past several months.     There were almost 2,100 Notices of Default filed in August 2012.    Additionally, as banks resolve past issues with MERS, we anticipate increased foreclosure activity – and may even see some lower prices as a result of the increased supply in available listings.

At this time, our current MLS inventory shows only 3,800+/- single family homes available, an unbelievable 10-day supply of housing!      This decreased inventory has caused asking prices for Las Vegas homes to increase 13.7% over a year ago, as reported by online site Trulia.com this morning, December 4th.     And according to Las Vegas-based SalesTraq, the median existing home price in Las Vegas has climbed from $100,000 in January to $124,000 in October.

We do try to report the most accurate, up-to-date information to our clients, but there could be a margin of error in our reporting.   Please understand that some of our comments may also be opinions and not absolute fact.

If you’re a home buyer or a home seller in today’s frenzied Las Vegas market, you need professional help.   Call Heather Brockhurst, Denise Moreno or Joanna Piette at 702-365-1000 and be a part of the right team!   HAPPY HOLIDAYS FROM NEW HOME RESOURCE!

The Mortgage Debt Relief Act is soon to expire!   And Congress has not mentioned a word about extending it…..     NOW is the time to get your short sale completed!

 

 Let me first remind everyone that we’re not attorneys,  and do not profess to understand this Act nor the law it its entirety.     Seek professional legal and tax advice for any and all of your questions or concerns!

 

 In a short sale, debt “forgiven” by the lender is subject to income tax,  because it is treated by the IRS as regular income.   With Las Vegas prices as they were during the “Boom Years” of 2004-2007, this figure is astronomical for most homeowners;  hundreds of thousands of dollars in forgiven debt could be considered taxable income.

 

 The Act relieves qualifying homeowners from the obligation of paying taxes on mortgage debt forgiven from a short sale or foreclosure.

 

 First enacted in 2007, the MDRA was extended once in 2009, but is set to expire this year on 12-31-12.    This means your short sale must be CLOSED by then, or any forgiven debt could be taxed as regular income.    There is qualifying criteria associated with the Debt Relief Forgiveness Act, so please seek professional legal and tax advice to see if you qualify.

 

 Potentially millions of people could find themselves liable for a huge tax bill if the government doesn’t renew the MDRA by the end of 2012.    This bill may expire!     Since many short sales take an average of six months to complete, homeowners are simply running out of time.       Those  considering a short sale of their home need to act QUICKLY (like today!) in order to take advantage of a potential tax break.

 

 Real Estate Brokers who are “Certified Distressed Property Experts” (CDPE) have undergone additional training specific to short sales.       The Broker at New Home Resource, Joanna Piette,  is a Certified Distressed  Property Expert / CDPE, and she can help.

 

 Contact a professional Realtor® at New Home Resource today at 702-365-1000.     We will help you get through this!!

If you’re thinking about selling your home, I’m thinking of telling you NOW’s the time!

 

Now, I’m not a clairvoyant and I’m not privy to any secret housing information, so all of this is based on my own gut feeling….  But I DO eat, sleep and breathe real estate, every single day!!!

Here’s my take on it:    Due to the negative effects of AB284 on our housing market (see my blog from 6-25-12), our inventory is at an all-time low…..  Interest in buying today’s undervalued real estate is incredibly high.   Together these two things = frenzied buying, overbidding and top-dollars being paid for today’s real estate.    Literally everything from vacant land to condos, manufactured housing to duplexes, single family to luxury homes are all receiving multiple offers, and selling above list price, day in and day out!    Cash buyers and financed buyers alike are overbidding to be the winners.

It’s my belief that the  effects of AB284 causing the current UNDER-supply of houses will conversely cause an OVER-supply when all these kinks get worked out on the bank’s end.   Once this glut of held-back foreclosures begins to hit the system, the generous supply of available properties will put an end to overbidding to win something.    A buyer will simply move along to a better-priced home down the street.

So THIS is why I say that NOW is the time to sell your home!    Even if you are selling short, I certainly believe that your lender(s) would be more likely to approve a sale at a higher price where their loss is less.    It could be a good bargaining tool as well!     And NEW HOME RESOURCE has a lot of experience with short sales!

If you are a traditional seller with equity In your home, selling TODAY could put more $$ in your pocket for investments, to build savings, pay for a college education or wedding, pay off debts or to buy a different home that better suits your needs.

Regardless of the type of sale, you definitely want to be working with the tenacious and knowledgeable Realtors® at NEW HOME RESOURCE!    Call Joanna Piette, Denise Moreno, Debbie Sullivan or Penny Womack today at 702-365-1000 !!   Don’t waste another minute!

The assembly bill known as AB284 became effective 10-1-11 and dramatically reduced the number of foreclosure filings in Nevada.       Just as a disclaimer, we’re not attorneys and don’t even pretend to explain nor understand the whole of the law.

To put it as simply as possible, the bill requires lenders to file an affidavit regarding the possession of the defaulting homeowner’s mortgage note & deed.  This affidavit would be filed along with the “Notice of Default” (aka NOD), and failure to comply is now a Class C Felony.   The NOD is the act that really allows the lender to physically foreclose at a future date.   So you can see that the whole thing is a domino effect – one must happen before the other, before the other, etc and the end result of an REO listing is directly affected by this new bill.

Literally thousands upon thousands of eventual-foreclosures are piling up on the bank’s books, while the banks work toward meeting the requirements of AB284.      “When” these will all hit is anybody’s guess.

Today, we have a staggering few 4,500+/- properties listed on MLS – – – 487 of which are ‘REO’ (foreclosed) properties.     All of the others are traditional sales, short sales, and/or investor ‘flips’.     This low inventory has caused a buying frenzy wherein the lower-priced properties are receiving multiple offers within hours of listing.   One of New Home Resource’s $210,000 listings received FORTY (40) offers!

The name of today’s game is overbidding and patience.    Buyers are regularly agreeing to pay over the appraised value to not lose the property they’ve come to love.  Gone are the days of sellers reducing their prices to meet low appraisals.       Every good buyer’s agent is counseling their buyers as to these facts of today’s market and the probability of paying more than appraised value to keep the home in escrow.

What does all this mean?   This is not all bad!!!      First of all, in recent years, property values have been horribly, horribly undervalued – – we’re simply bringing the market back into line, one property at  a time.    Even paying a few dollars more for something is well worth it – the property is being bought at a fraction of where it sold just a few years ago!    Even at these prices, we are stealing homes!!   Interest rates are at an all-time low where you can OWN a gorgeous home for less than rent.

Just make sure you’re using a knowledgeable, professional Realtor® who knows today’s market, has excellent relationships with fellow listing agents and who can give you the best advice for your situation.      You should be using a NEW HOME RESOURCE agent!    Call Joanna Piette, Denise Moreno, Penny Womack or Debbie Sullivan today!  702-365-1000

 

SELLING SHORT?      NOW IS THE TIME TO SELL YOUR HOME!!

Needing to short-sale your home?  NOW Is the time!     Buyers are abundant and available properties are scarce.

In addition, Fannie Mae and Freddie Mac have just announced new SHORTENED timelines for short-sale decisions and a couple of the major banks are changing their processes to shorten their timelines as well.

You need a qualified real estate team to handle your short sale – call on the Joanna Piette Team at New Home Resource.    We get the job done!  Many times we already have buyers in place, just waiting for a great home like yours to hit the market.  Don’t delay – call Joanna Piette at New Home Resource today 702-365-1000.

Never before today in my real estate career have I encountered so many folks who are buying property, sight unseen. 

In today’s busy, busy world of real estate purchases, more and more out of state and foreign buyers are wanting to invest in the Las Vegas housing market.  I personally think NOW NOW NOW is the time to buy!  I could be wrong, but just live daily around these incredible prices,  and I can’t help but  think we should all be gobbling It up like candy.

I’m apparently not the only person who feels this way about Las Vegas real estate 🙂

However, this concept becomes an issue for buyers not living in Vegas – how can they jump on the “purchase today” bandwagon  when they aren’t here to physically visit the home and consummate the purchase?

Hire a stellar Realtor, that’s how!!

You need to work with a Real Estate Agent and agency you trust to provide you with all the information available about the property.    One who directs you to websites where you can learn about the area schools, the amenities,  and the crime statistics/rates.  One who responds to your emails and phone calls.    Develop a trust and rapport with your Realtor and together, you’ll put together the deal that works best for you.

Buying real estate isn’t a simple task, whether or not you live in Las Vegas or Timbucktoo.    Enlist the help of a New Home Resource agent and you won’t go wrong !

As Realtors, one of the first things we do is make sure the buyer in our car has the ‘ability’ to buy:  either they have cash funds to purchase, or they need financing.   Buyers who’ve had a short sale or a foreclosure often think it’s the end of the road for them…. that due to their impaired credit,  they’ll not be able to buy a home for several years.     Well, look no further!

Las Vegas-based company Premier Mortgage Lending is able to help homeowners who’ve had a recent short sale or foreclosure, and get them into a home – – at today’s incredibly low prices!      The buyer must qualify with at least 20% down and a stable job, regular income and debt ratios that work with traditional loan types, but credit may be overlooked.      Premier Mortgage offers a free prequalification service – – if you or anyone you know has impaired credit, but does have a stable job, regular income and at least 20% down, please urge them to call Premier Mortgage Lending today at 702-485-6600.