Las Vegas Market Conditions

I went to a seminar last week where representatives from Chase, Bank of America and Wells Fargo were present to talk about market conditions.

Generally, the talk was about short sales and the push the banks are making to streamline the process.  They have put processes in place with the loans they hold to make them faster.  However, if there are multiple liens, an investor involved, FHA loan or mortgage insurance then it takes longer to get the approval needed.  The times frames are not what they used to be.  Generally the short sales are getting approved within 90 - 120 days.

The question always asked is about shadow inventory.  Are the banks holding back inventory from the market?  No, once they get the homes foreclosed they place them on the market for sale as fast as possible.  They are not holding back inventory.

However, the banks are slowing down on filing foreclosures in Nevada due to AB 284.  They are waiting to see what can be done to comply and make sure all is in order before they file.  That being said, all three banks felt inventory would be loosing up a bit by fall.

The push is towards loan modifications or short sales.  The banks are offering various incentives such as relocation assistance (as much as $45,000) in order to get delinquent homeowners out of their homes and put new (paying) homeowners in. If you are delinquent on a loan don't neglect to open your mail.  The banks are mailing out these offers based on an internal risk analysis. 

Nothing much was said.  The trend is now short sales with less emphasis on bank owned.

As of today (6/22/2012 at 1:12 p.m.) here are the numbers:

• Active on Market (townhomes, condos, single family in Vegas area): 4476

• Closed in the last 30 days: 3586

• In contingent or pending status: 15,550 (interesting number, these are homes under contract but not closed yet due to waiting for financing, inspections or short sale approval).

Underwater?  Delinquent on your Las Vegas loan?  Not sure of your options? Considering a Las Vegas short sale?  

Southern Nevada Realty, LLC offers a free attorney consultation.  Get the facts and decide what will work best in your situation. Call Cindy at 702-807-3339 for details.

Las Vegas Agent to Sell My Las Vegas Home

 FEATURE YOUR LAS VEGAS HOME ON THIS SITE!

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Southern Nevada Realty, LLC is looking for homes to sell.  If you are interested please call us to get a complimentary market report.

Short sales are welcome.  We have access to a short sale processor at no additional charge to sellers. We take care of the details and headaches of working with your lender.  We do our best to get your Las Vegas home under contract, short sale approved, and home closed as fast as possible.  Let us help you get on with your life without the weight of your Las Vegas underwater home.

Call: 702-807-3339.

Las Vegas Short Sales - Las Vegas Real Estate Resources

Waiting for a short sale to be approved can be maddening for a buyer.  Remember, you knew there would be a wait and you made the decision to wait for a short sale.  My office will keep up with the person working on the short sale for the seller.  What can you do while waiting?

Keep up with the market 
Keep looking at the listings I am emailing you to you.  I'm not trying to torture you.  I want you to keep up with the market and keep your eyes open just in case something pops up that you feel you cannot live without.

Shore up your Financing
If you are financing talk to your lender and see if there is anything you can do to make sure that the loan process goes smoothly and efficiently.  If using cash, make sure the cash is on hand or find out what you need to do in order to get the cash in hand.

Keep me Updated
If your situation changes or if you plan on being out of town, please tell me.  I need to know if you are being transferred or if you are going to be unreachable for a time.

Thinking about purchasing a short sale property?  

I can assist you!  Call me at 702-807-3339 or send me an email.  

Related Posts:
Las Vegas Short Sales - Answers to a Buyer's Question

Las Vegas HUD Homes

HUD homes are listed at an FHA "as is" appraisal value.  What does that mean to you?  It means that if you are using an FHA loan then you can use their appraisal without an additional cost to you (these appraisals are good for four months). That can be a savings of up to $400 to you.  If you are using a conventional or VA loan you have to check to your lender to see if they will accept this appraisal.

Also, because this appraisal has already been completed if you overbid then you will have to pay the difference between the appraisal and the overbid price.  This applies regardless of your loan. Your lender will not lend you more than the appraised value of a property.  HUD does not reduce the price of the home to meet the appraised value.

Southern Nevada Realty, LLC is a registered HUD broker. We can assist you in purchasing your Las Vegas HUD home (Henderson and North Las Vegas as well).

Receive a list of Las Vegas homes for sale (HUD, bank owned, and short sales are included) by clicking here.

FREE Las Vegas HUD homes photo list - click here (put HUD home list in the comments)

Thank you!

Related Posts:
Benefits of buying a Las Vegas HUD home
Las Vegas Short Sales
Las Vegas Bank Owned Properties

My Top Nine Las Vegas Home Buyer Posts

Here are my top nine posts with wonderfully helpful and timely information for Las Vegas home buyers.

Las Vegas Short Sales  - Get the answers to all of your questions regarding the short sale process (for buyers of short sale properties).

Las Vegas Bank Owned Properties - Again, some information to help you through the bank owned property world.

Home Buyer Tools - crime reports, school zoning, maps, and other useful information.

Finding the Best Las Vegas School - research specific schools through accountability reports which detail everything from test scores to truancy rates.

How to Find the Best Home: What Do You Want? - the basics you need to figure out before going out to look at homes.  Save yourself some time and read this post.

How to Find the Best Home: What Else Do You Want? - Beyond the basics of your home search. Get into the nitty gritty of what you want in a home.

Making an Offer - what is needed to make an offer on a Las Vegas home.

What Should You Offer?- how to figure out what your offer should be.

Las Vegas Home Buyers: Accept, Reject, Counter???- the negotiation process.  

Looking for a Vegas home?  Contact me today.  Let's get your home search started!

Las Vegas Short Sales

Buyers don't know what to do with short sales.  They have heard so many horror stories that they are often wary of writing offers on a short sale property.  However, if you dismiss short sales you are often missing out on some fantastic homes.

I have had many buyers make offers on short sale property and actually close on them. But, they are not for everyone.  Here are a few questions I often come across from buyers and my answers.  Please remember, these are general answers.  Every situation is different.

Does it really take a long time to get an offer accepted?
Once you put in an offer it is still taking up to three months to get an answer.  Often during that time there are few updates from the parties negotiating the short sale.  A buyer needs to have immense patience while waiting.  I will ask for updates from the listing office every two weeks.  However, the updates are usually - "the file is being processed."  That is often all the listing office can get from the seller's bank.

I'm very diligent and keep up with the listing office.  I have done enough of these (on both the buyer and seller side) and know the process.  I can get a very good feel from speaking to the person working on the file whether it has a chance or not.

Why does it take so long to get an answer? 
Bureaucracy - a specific set of documents need to be submitted to the seller's bank, these get checked and then there are other things that are needed to complete the file such as property valuations, etc.  Plus, there are departments for everything - one checks the files, one negotiates the file, one approves the file, one issues the approval ....

Are all short sales approved?
There are no guarantees.  Numerous things can happen during the process.  It isn't always the buyers who get tired and walk away from a short sale.  The short sale could not be approved, the property could be foreclosed upon prior to approval, the seller could get tired and decide to just let the property go, the seller could declare bankruptcy.   Also, the short sale approval could come back with terms that the seller or buyer do not agree upon.

Can I still make other offers while waiting for a short sale to be approved?
That depends upon the buyer.  Once your offer is accepted by the seller, you have a contract.  In the purchase agreement you specify how long you are willing to wait for short sale approval.  Some buyers feel comfortable to keep looking and trying to find something else during that time.  Others decide to wait the process.  The decision to wait or not is specific to each buyer.

How long do I have to agree to wait for short sale approval?
That is up to you.  It can take up to 90 days for approval.  But, you can specify as many days as you want.  The time frame can become a negotiation issue.

While I'm waiting for the approval, can another buyer come in and make an offer?
The short sale addendum we use addresses that issue. Yes, technically that could happen. A listing agent is required to show all offers that come in on a property.  But the addendum gives you the right to meet the terms of the new offer.  If you are willing to meet the new offer your offer will stay in place.  If not, then the other offer will be accepted. 

Generally, this doesn't happen because a new offer can sometimes cause the seller's lender to close the ongoing short sale file and require the seller to start all over again.  Most agents in this area will keep a new offer that comes in as a back up in case the current buyer walks away.

Are short sales better deals than bank owned properties?
Short sales generally sell at market price.  In fact, a recent Bank of America executive has stated that with short sales the goal was to get at or above market value.  Part of the short sale process involves the bank getting valuations of the property from area appraisers and real estate brokers. They have a good idea of property values.

Any other pitfalls to a short sale?
Well, the waiting time can affect your loan.  You may find your loan product could disappear or change.  You can't lock your loan rate because we don't have an approval.  Your credit report could change due to purchases and that could affect your loan as well. 

I have a friend who .....
Everyone's experience with a short sale is different.  Each file is different because there are different parties involved.  Don't take one person's experience and think that is what will happen with yours.  Your job is to be patient.  Your agent will handle the ups and downs. 

Why would anybody make an offer on a short sale?
Often there is something about the property that the buyer absolutely loves.  It could be a property with the perfect lot.  Maybe, the property has all of the upgrades a buyer wants.

I personally don't discourage my buyers from making an offer on a short sale.  I think that if the buyer is aware of the potential pitfalls and is willing to be patient then go for it.

Interested in purchasing a home in our beautiful city?  Visit my Website at SoManyHomes.com

Enjoy the weekend,

Cindy

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Las Vegas Short Sales on the Rise

According to a recent story reported by the Las Vegas Sun, bank owned properties only accounted for 50% of houses sold in 2009 versus approximately 70% the prior year. The main reason is the number of short sales that have been completed.

Lenders are finding that short sales are more financially advantageous. The average bank owned property sells for approx. $80 per square foot versus the short sale which gets approximately $130 per square foot.

This should mean that short sales will become a less arduous process. I personally have never been afraid of short sales. I know there are some agents who hate short sales and don't like to show them. Right now, most of the short sales I have been doing have averaged a wait time of three months to get an answer on an offer submitted. Then there is a 30 day time frame to close. There have been a few that have been at the six month market with no response. Generally, I give the seller a three month opportunity to get the short sale approved. After that, we usually start looking for something else.

Short sales take patience, organization, and diligence. I have found that my buyers are willing to wait the process out if they are kept regularly informed about the process. The listing agents that I have worked with that have been able to successfully negotiate a deal have been ones who kept me updated without me having to contact them. They also were very actively working the file.

The Las Vegas real estate market is constantly changing. There is nothing to be afraid of if you are working with an agent who can keep up with the changes. In the end, all buyers and sellers want is an agent who listens to them, keeps them informed, protects their interests, and doesn't treat them like a number or a nuisance.

Interested in using our services? Click here to check out what some of our past clients have to say about us.

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Las Vegas Foreclosures and Las Vegas Short Sales

Listened to Harris Real Estate University Superstar Interview today. Cary Sternberg, president of an asset management company, talking about foreclosures. I've summarized some key points of the interview below.

Shadow inventory does it exist? Well, no - banks are not holding back inventory. Anything that has been foreclosed on is out there for sale.

However, nationwide there is 2.4 - 7 million properties that are in the default pipeline. This is what he calls "shadow inventory." They are not being foreclosed on because other avenues are being explored such as moratorium, government programs, loan modification or adjustment.

Sternberg predicts that by the end of this quarter the shadow inventory will start hitting the market. It will increase through the year. This could lead to some price decreases, but he feels that we are already so low that it won't be much.

Sternberg thinks we are five to seven years away from having homes on the market that are owned by individual owners. Meaning, that it will continue to be more bank owned and short sales that are on the market. This is not a depreciation phase, he is talking about the market normalizing.

Sternberg opines that those people who bought at the height of the market will have to wait ten years before they will be able to sell and break even.

That is all. If you are having problems making your mortgage payments - call me. If you need to sell and owe more than what you can get for it - call me. Let's explore whether a short sale of your Las Vegas homes is an option. I have a Certified Distressed Property Designation and am experienced with short sales. I can help you. 702-807-3339.

Enjoy your Weekend.

Las Vegas Loan Modification

Click here to read an article regarding loan modification. Interesting stuff.

If you are behind on payments and looking to settle with your bank call me (702-807-3339). I am a short sale specialist and can negotiate with your bank to accept a lower pay out. All of this is at no cost to you since the bank pays my fees.

Thanks,
Cindy

Real Estate News Around The Web

Here are a few stories that caught my eye this past week:

Short Sales, a Thorny Process: good overview article on short sales for buyers and sellers. Tax consequences of a short sale have been discussed on this blog - click here to read.

Mortgage Rates Dive: rates are likely to remain low for now until the Spring.

Where the candidates stand on the mortgage crisis: not too many details, but still worth a look.

Mortgages are still available: Yes, you need good credit, a downpayment, and a job.

Short Sales and Taxes

People who are selling their home for less than they owe (short sales) may still have to pay taxes. Generally, a seller will get permission from the lender to have a portion of the loan written off in order to allow the seller to sell the home. That amount of money which was "written off" is then claimed on the seller's taxes as taxable income. This tax hit often stopped seller's from selling - opting instead for foreclosure.

In order to assist these people a new law was enacted which changed the above rule. This new law states that the income from the written off portion of the loan is not taxable if:

- debt was forgiven between January 1, 2007 and December 31, 2009 (this may be extended);

- it is the seller's primary residence;

- the debt forgiven isn't a refinance (this forgiven debt will be taxed); and

- is limited to 2 million dollars.

Remember, capital gains tax could still apply if you haven't lived in the property for over two years.

If you are thinking about doing a short sale you should talk to your accountant to find out about any tax ramifications. Don't leave this to chance. Don't rely on your real estate agent because tax laws are tricky.