They Foreclosed on The House I'm Living In - Now What?

Every state is different when it comes to foreclosures. And in times like these, things have changed.

Even here in Las Vegas, it used to be if they foreclosed on your house, the sheriff showed with someone from the bank up a day to two later to evict you, lock you out and then make arrangements for you to come back and get your stuff. But these are troubled times, and there are large numbers of homes being foreclosed on every day.

Currently, at least in Las Vegas, if your house is not purchased at auction by an investor or new owner occupant, the bank will assign your property to an asset manager. This could be a real estate agent or an asset management company who takes care of the property until the bank is ready to list the house. The asset manager or agent will come by and do an occupancy check to see who's living in the house.

If its a rental tenant, they have different rights than the previous owner. If you're a tenant with a lease, the bank has to, by law, give you at least 90 days to make arrangements to move. They may offer you cash to move sooner, or if you have a lease that doesn't expire for a longer period of time, they are supposed to honor the terms of your lease. This doesn't mean you don't have to continue to pay rent, it just means you'll pay it to the asset management company or whoever the bank chooses while you make plans to move. Another alternative is to go get prequalified and buy the house you're living in.

If you are the previous owner, the process is a little different. After they do the occupancy check and discover you are still living in the house, they will probably still offer you a cash for keys offer, giving you 30 days to move and also offering you up to $1500 to move and leave the property in good condition. But make no mistake, you have to move out. You have no rights, and the bank is just trying to protect their interest by offering you cash so you won't trash and strip the property when you move. They could call the sheriff and have you evicted if they wanted to.

Once the title went back to the bank (and it usually only takes 1 day to record back into the banks name), you're tresspassing and subject to immediate eviction.

Another scenario is when an investor buys the house. They may actually come and try to make a deal with you, offering to rent the property to you for a couple of years, and possibly sell it back to you on a lease option. Depending on your current financial situation, this may or may not be a good option for you. Rent may be less than what your house payment was, and you don't have to move. They will probably want an option payment, but you haven't paid a mortgage payment for 6 or 7 months so hopefully you now have a little cash set aside.

Lastly, a new owner occupant may have bought the property at the auction. This is now beginnning to occur more frequently. They have the right to evict you. They too may offer you a small financial incentive to move or they may show up with the sheriff. Its their call. Remember, once the property sold to someone else, you're trespassing.

Foreclosure is a difficult situation and no fun for anyone. This process as I described may or may not work in other states or even cities across the country. Take the time to find out how it works where you live. Talk to a couple of agents who specialize in foreclosures in your town.

Please don't put your head in the sand. No one wants the sheriff to show up and tell them they have to get out NOW!If you're behind on your mortgage, or you think you're going to be, call a professional and find out what your options are. The sooner you do, the more options you have. They may include a loan modification, forensic audit, deed in lieu, short sale or foreclosure. Some processes are just bandaids, some are real solutions depending on your situation.

There is lots of help out there, and a lot of it is free.

Heather Peck

Rosen & Company West

702-595-7380

LasVegasExpert@yahoo.com

http://www.heathersellsvegas.com/

In today's economy, lenders are just plain nervous. They are taking longer and longer to approve loans, running the buyer through every ringer they can find, sifting through their background like their all out do defraud the government, and making sure that they know absolutely everything they can about the borrower.

I've been working with a buyer who had some credit challenges. There was some old debt to pay off, debt-to-income ratios to lower, and scores to improve -- just a little bit. Then, a dark ghost came out of the closet. A tax return filed two years ago contained what the underwriter thought were irregularities so they called the IRS to verify what the borrower had put on their mortgage application. I think the most shocking thing is that they actually called the IRS.

Gone are the days of you just have to breathe to get a loan. Questionable loan officers were doctoring bank statements and pay stubs. Potential borrowers were lying about their income. Now they actually - VERIFY what you put in your application. Even if the loan officer doesn't verify it, if the underwriter has the slightest inkling that something isn't right, they're going to call whoever they have to in order to see if you're telling the truth.

So before you go choose just any loan officer to prequalify you, understand that your financial background is subject to a great deal of scrutiny. You'll need to be prepared to provide proof of where you get your money, explain why you may have extra cash in your account, and that everything on your tax returns is legitimate. If you're recently divorced, how your debt was split up can affect your ratios which may affect how much house you can buy.

Everyone wants you to succeed. The real estate agent wants to sell you a house. The loan officer wants to get you a loan, and the title company wants to close the file. But the underwriter, that person who evaluates your loan and decides if you're who you say you are and your financials are what you represent, that's the one who can make or break your deal. So make sure you've taken care of any ghosts in your closet before you go shopping for a house.

You'll be glad you did.

Heather Peck

Rosen & Company West

702-595-7380

LasVegasExpert@yahoo.com

http://www.heathersellsvegas.com/

Here in Las Vegas, we have several condo-hotel properties currently operating and two more just getting ready to open. These include Palms Place, Trump, MGM Signature, Platinum and the brand debuting Cosmopolitan and Vdara at City Center.

A condo-hotel, a term I thought most people were familiar with but apparently are not, is a condo that comes totally turn-key just like a hotel room. They are totally furnished with everything you would find in a hotel or timeshare property. This includes livingroom furniture like a queen size sleeper sofa, tables, chairs, art, and now flat panel TVs. The sleeping area which may be a separate bedroom depending on the size of the unit which have a queen or king size bed, all the high end linens you'd expect in a 5 star resort, and more. The baths will have all the luxurious towels, rugs, and bath accessories like shampoo, body soap and more. The kitchens (or kitchenettes) will have appliances, a fridge, microwave, dishwasher, some time of cooktop and possibly and oven, as well as all the appointments you'd need to cook and serve just like at home (dishes, silverware, cookware, utensils, etc.).

Considering whether this is a good option for you, there are some things you need to understand. Most people buy a condo-hotel unit for an investment. This is because they can be rented out nightly like a hotel room, and you can generate income from it. Most rental programs operate on a 50/50 split meaning you get half the nightly revenue they bring in. So for example, if the room generates $100 per night, you're entitled to $50 per night.

Other people buy one of these types of units so they have a place to stay when they come to Las Vegas, or can let friends, family, colleagues or clients use it. If this is your purpose, this is a popular use for these units, and if they happen to bring in some additional income, then its considered a bonus.

I get some of the same questions over and over:

• What does it rent for per night? There is no easy answer to this question. It depends on the size of the unit, the number of people it sleeps, the project it is in, the time of year, what's going on it town, weekday vs. weekend, etc. To get an idea what it rents for per night, go to the website of the property, put in your dates and the size unit you're thinking of buying and see what they're charging for per night.
• Why is the monthly HOA dues so high? Your monthly HOA dues in a condo hotel covers everything except property taxes and insurance. What is usually included is the typical utilities like water, sewer and trash, upkeep of the common areas like the pool and spa, fitness center, security, etc. But with a condo-hotel, it also includes the other utilities like electric and gas, front desk staff, concierge, valet parking, cable TV service and, the availability of high speed internet access and pay-per-view movies. Having all that staff to keep that 5-star property looking like a 5-star property isn't cheap.
• How much money could I expect to make each month OR will this cash flow for me? There is no way to answer this question easily. Legally, you can't be promised income because that makes it an investment which requires a securities license to sell and no one in real estate I know of has one. Also, past performance is no indication of future income. But here is the real rub -- if the property is now bank owned, you as a buyer are not provided with any type of disclosure about the property because the bank doesn't know anything about the unit other than they foreclosed on it and are selling it. If the property is a short sale, the previous owner may choose to share this info with you but they are not obligated to. But here is the hardest part of this -- in the vacation rental business, the client dictates the use. So depending on what floor your unit is on, what size it is and what view it has may or may not affect how often its rented. Some guests want a high floor, no a low floor, sleeping space for 4 people, no 6 people, no 8 people, a view of the strip or "I don't care what the view is", or I always stay in room ### if its available because that's where he proposed. As fair as the property tries to be in spreading out the reservations so everyone gets as equal a shot at income, you can see how the guests could easily sway the outcome of this endeavor. Do your homework, see how many nights you'd need to break even and decide that even if you don't make that number if you'd be okay with it.
  
• Why are these units such great deals right now? Several reasons - most of the condo hotel units currently available are being offered at amazing discounts had previously sold for $400,000 to over $1 million and can now be purchased for $100,000 to $200,000. Why so cheap? Because no lender will loan on them and so they must be purchased with cash. Why won't lenders loan on them? Because condo-hotel units were typically purchased by investors and, when the market goes bad, investors are the first ones to dump the properties making these very risky loans.

I love condo-hotel properties. Having frequently been in all of these properties, I see their merit and their downside. But if you visit Las Vegas frequently, or want a hands-off rental, this could be a great option for you.

Why Can’t I Finance A Condo?

This has been a hot topic lately in Las Vegas. Due to the low prices, we have tons of buyers who are dying to buy a condo. The lure of $25,000, $35,000 even $50,000 condos is unbelievable catnip.

Can you imagine having a house payment of only $275 a month (of course that doesn't include taxes, insurance or HOA fees)? But my car payment is more than that.

So buyers are calling me, emailing me, telling me they've been prequalified and want to buy. Then I have to drop "The Bomb!" I'm so sorry, but even though you're prequalified, your lender will not loan on a condo. And then you get the expected response ………. "But Why?"

A few months back, when the bottom dropped out on the lenders, all lenders decided to follow FHA/VA guidelines which now limit the condo communities they'll loan on. Those guidelines say that the community must be at least 80% owner occupied. That means that if there are lots of vacant units that have become bank owned, or too many units are owned by investors and rented out (or a combination of both of those), the property does not qualify for financing. In addition, they won't finance a property that has more than 20% of the owners who are 30 days or more delinquent on their monthly HOA dues. Lastly, if there is any pending litigation, they will also usually refuse to finance.

Now there is a website that lists FHA qualified communities, however, when the due diligence is performed on the community, there are truly only a handful of properties that may qualify. So the standard response is "Sorry, you will have to pay cash."

The good news is this does not apply to townhouses (if they are truly registered with the county assessor as a townhouse) or single family homes. But for those of you who were hoping for a $275 monthly mortgage, I'm afraid you're out of luck … at least for a while.

Heather Peck

Rosen & Company West

702-595-7380

LasVegasExpert@yahoo.com

www.HeatherSellsVegas.com

 

Are We There Yet?

One of the most common questions I get from buyer's is "Are We There Yet?" When do you think the Las Vegas real estate market will hit bottom?"

Well, I can tell you that people much smarter than me think we got there. The banks are no longer dumping bank-owned properties on the market, whether by design or not. This is driving multiple offers on the houses that are available, pushing desire, and sometimes causing prices to go up. Here is the latest article in our local paper http://www.lvrj.com/business/51297172.html

The standard conversation these days regarding any property you're buyer is interested in goes like this with your buyer and the listing agent or someone on the listing agent's team. "OK, let me check on the status. Hello, how many offers on this property? Only 20, OK thank you." That is, if you can get them on the phone. Many REO or Bank Owned Property Listing Teams don't take phone calls but specify they will only respond to emails or text messages. Of course, your buyer can't believe that's how it works but unfortunately its true.

So now, if you've been waiting to get a great deal, the time to buy is now. Yes, of course we want you to buy now, but this time we really do. Condos that sold for $800,000 3 years ago can be purchased for $150,000 or less. Homes are being sold are prices that are 1/3 of what they cost to build 3 years ago. The government is willing to give you $8,000 as a tax credit that doesn't have to be paid back but you must buy before December 1^st. So huge discounts combined with tax credits, sounds like a buyer's dream.

What are you waiting for?

Heather Peck

Rosen & Company West

702-595-7380

LasVegasExpert@yahoo.com

www.HeatherSellsVegas.com

MGM Signature Condo Hotel

Condo hotel properties were quite the rage 4-5 years ago. Las Vegas had a number of them planned, however only a few actually were completed. A condo hotel is a property comprised on fully furnished condos. All units that are the same size and floor plan have exactly the same amenities, furnishings and more. And amenities are very important in these types of properties.

The MGM Signature is an amazing condo-hotel located just behind the MGM Grand Casino Resort. Comprised of three towers, each unit is beautifully furnished with a plush sofa, contemporary furniture, flat panel TVs, luxurious bedding on the decadent king size bed and sumptuous linens and towels. Kitchens come complete with Bosch, Miele and Subzero stainless appliances, granite bathroom vanities and whirlpool spa tubs. Step outside onto your refreshing balcony to enjoy a view of the Strip or Las Vegas valley. Of course there are both Junior Suites or basically a studio and one bedroom suites, with a separate living room and larger kitchen area, as well as a private bedroom. The one bedroom and studio can be combined to offer a two bedroom suite with everything you could possibly want.

Of course, the Signature is a separate guard gated community, offering valet parking, a pool and spa only to residents and guests. In typical high rise fashion, you have a business center, concierge to make all your entertainment and dining arrangements for you, a state of the art fitness center, and of course you can take advantage of an in-suite massage or room service from one of the many restaurants at the MGM Grand, just steps away. And if you travel for business, you can take advantage of their airport check-in, plus it's just a short hop to McCarren Airport.

Another thing I really like about the Signature is its proximity to the monorail, as well as being able to use the amenities at the MGM Grand. If you've never floated along the lazy river, you've really missed a great treat.

You can live here full time if you choose, or place your unit in the rental pool if you only plan to visit occasionally. No promises on how often it will get rented, if at all, but it's a nice option to have.

If there was a downside to this lifestyle, it would be you will probably never know your neighbors. Because these units are also rented out, chances are the people that are next door today won't be there next week. And if you intend to use the unit as a rental as well as a personal residence, you can't hang a nail or change a pillow. Each unit must look exactly the others the same size in your tower.

With the amazing prices on these units right now, this is a property I think anyone who comes to Las Vegas often enough should consider. The biggest stopping point for many buyers has been the lack of financing for condos. If this is what's holding you back, then please shoot me an email because I have a lender who will now loan on these types of properties. Of course, not everyone will qualify, but don't let lack of financing keep you from purchasing one of these outstanding properties.

Heather Peck

Rosen & Company West

702-595-7380

LasVegasExpert@yahoo.com

www.HeatherSellsVegas.com

What Makes A Property A Good Investment

 

I get calls from new investors all the time that want to buy a good investment. My question to them is what would make it a good investment? And of course the reply is "I don't want to lose money, I want it to be worth more in a couple of years. Do you think that will happen?"

Now I don't know about you, but crystal ball is broken. It's been in the shop for months and no one has been able to come up with the parts I need to fix it. So instead I try to have them put it in perspective.

If you're buying a property that you intend to hold and lease out, how much of a profit would you need to make every month for it to be considered a good investment? $100 a month? $300 a month? $500 a month? More? How long would you have to hold a property for you to feel like you made your money's worth? 2 years? 5 years? Longer?

In our market, many investors have discovered that they can easily make $300-$400 a month positive cash flow per month based on what the property costs them vs. the rent they can collect. When you're deciding if that's enough for you, remember to calculate all your expenses.

Typical expenses on an investment property include:

• Principal and interest, if you financed the property
  
• Taxes
  
• Insurance
  
• Homeowner's Association or CIC (common interest community dues if there is one or more – yes some properties have up to 3 associations to pay dues to)
  
• Property manager's fee (unless you want to be the one the tenants call at 3am with a plumbing problem)
  
• Money set aside for possible repairs
  
• Money set aside to renew the home warranty you bought next year (an extremely worthwhile investment when it comes to helping maintain necessary systems, keep your tenants happy and your wallet happier)
  

So when determining if a property is a good investment, find out what it will lease for in good condition. Decide what price you would have to pay for it and how much you'd have to put into repairs to make it a place good tenants would want to lease. Make sure NOT to overprice your property. Great properties have lots of people want to rent them but not if they are much more to rent than another property.

If the numbers make good sense to you, and you're in the black, then buy it. Have your financing or proof of funds ready, decide what the most you can afford to pay is and go for it. Happy Investing!

Heather Peck

Rosen & Company West

LasVegasExpert@yahoo.com

www.HeatherSellsVegas.com

702-595-7380

Be Ready To Buy In Today’s Market

The rules have changed so much in the last few months for buyer's trying to buy real estate today. Gone are the days when you could make an offer contingent on selling your current house. Lender's no longer will accept your offer hoping you will get prequalified to buy during the next couple weeks. No one will just take your word for the fact that you can really afford to pay cash for a property. They won't give you a few days after you submit your offer and they accept it to get everything gathered together. Today you must be prepared with all your paperwork so your offer will be complete and seriously considered.

No offers on real estate will even be considered these days without knowing the buyer has already been prequalified or has the funds to purchae. A complete offer must be submitted in order to be considered. A complete offer includes an offer to purchase, the prequalification letter or proof of funds, and an earnest money deposit (usually in the form of a personal check), and any other documents required by your local board of Realtors. Here in Nevada that would include a signed Duties Owed form and a Confirmation of Agency.

Step one is to figure out how you're going to pay for a property before you go house shopping. If you're planning to pay cash, you'll need to have some sort of "Proof of Funds." This can be as simple as a copy of your bank statement or investment account. Of course, you can request that your financial institution to provide you with a letter that states you can afford to spend up to a certain amount. Besides, isn't it better to know how much you can afford to buy so you don't look at houses that are out of your budget or find out later you could have afforded to buy a much larger house.

Unfortunately, not everyone has a large pile of cash laying around to pay for a house. So, if you're planning to finance, you must get prequalified by a lender or loan broker. Some lender-owned properties or REOs (real estate owned) will require you to prequalify with a loan officer of their choice. This doesn't mean you must borrow the money from them, but the lender wants to be sure you can actually qualify to buy the property. Your real estate agent will be able to tell you if this is a prerequisite on the property you choose.

So if you're planning to buy a house, you must get your financing or proof of funds lined up prior to shopping for property. This way, you know that when you find the right property, you'll be able to buy it. The more prepared you are, the better your chance of getting your offer accepted.

Now go out there and buy a house.

 

Heather Peck

Rosen & Company West

www.HeatherSellsVegas.com

702-595-7380

LasVegasExpert@yahoo.com

Buying In A Fast Moving Market

This morning I was vindicated. An article in our local paper, the Las Vegas Review Journal, noted that the Las Vegas is so hot, we actually closed more sales in June 2009 than we did in June 2004 which was at the height of our boom, now referred to as our gigantic bubble.

I have related to all of my buyers of late that this market is unbelievable, with over 50% of the properties available under contract, and 25% are juggling multiple offers trying to decide which offer to take. In fact, my partner placed an offer on an investment property for one of her buyer's on a property that had already received 80 offers! As it turned out, he listened to her and made an offer $20,000 over list price, and he got the property. Now I can hear you gasp "$20,000 over list price?! This is a declining market, what was he thinking?!?!?" Let me explain.

This property was listed at $35,000 but there were other properties that made it compare to properties for $60,000. So he offered $55,000 and got the property. It is in very good condition other than a little lipstick and will cash flow nicely as a rental property. Additionally, as we run comparables in this market, we have discovered that the properties have stayed the same values as last month -- no drop.

What does that mean to you the buyer? It means that when you're buying in a hot market, be prepared to make your absolute best offer, that if you lose the property for a dollar, you'll be okay with it. Lenders on both short sales and bank owned properties are getting lots of offers, and so they are not countering except for the offer they want to accept. Nor are they putting out multiple offer notices - here in Las Vegas its become a given.

So get you're financing lined up, do your homework, and make your best offer. You're only going to get one chance in this market.

4th of July in Las Vegas

I love the 4th of July. It always brings thoughts of family time, tasty barbecues and of course, spectacular fireworks. Although my children are grown and live on the other side of the country, I try to make the 4th special.

Summers in Las Vegas bring 100 degree plus temperatures. This doesn't stop Las Vegans from celebrating this great holiday. We too will be joining thousands of locals at Lake Mead, jet skiing, boating and hanging out with friends. Later in the evening, we will be attending one of the amazing fireworks displays. My favorites are the ones that explode and appear to drip down like rain drops.

This year, we're going to Lake Las Vegas. This amazing community is located in Henderson, just five minutes from Lake Mead. As you drive into the community, you pass waterfalls, golf courses, and enter into the quaint village that offers the flavor of an old Italian village. Cobblestone streets lead to restaurants, shops, and down to Lake Las Vegas. The Lake is a private self-contained water feature that hosts a many special events including dragon boat races, boat tours, dinner on a gondola, a floating ice rink in the winter, and of course fireworks on the 4th. Other events include free movies on Thursday evenings in the central square, art shows, and live music.

So go outside this 4th of July. Enjoy the people you seldom get to see or spend time with the people you love the most. And most importantly, have a great safe and sane 4th of July.

Short Sales - Long Process

Many of us in real estate joke that the phrase "Short Sale" is an oxymoron because short sales are anything but short. Of course, that's not what a short sale is.

A short sale is when the mortgage holder agrees to take less than is owed on the mortgage to satisfy the loan. In otherwords, if you owe $100,000 on your mortgage, but can only sell for $80,000 and your mortgage lender agrees to take that as payment in full, you are selling "short."

The most common question I get is why do short sales take so long. Its a complicated process to explain. When you get an offer for less than you owe on the property, the offer is sent to your lender or lenders if you have more than one mortgage, so they can decide whether to accept that amount or not. After an offer is submitted to the lender, the lender then has to assign it to a negotiator, or someone who will manage the process. This first step can take up to 90 days depending on who the lender is and the workload of each negotiator.

After a negotiator is assigned, they review the offer as well as all the financial documentation submitted by the homeowner or seller. They look to see if the seller has a true financial hardship and if the offer is reasonable for the property, geographic area and what is going on in the market there. If the negotiator needs more information about prices of similar properties in the area, they will order a BPO or Broker's Price Opinion which is basically a real estate agent's opinion of what the property compares at in terms of market value.

Now armed with this information, they will review the offer. Some negotiators must submit all this accumulated documentation to their superior or even a committee for review and a decision. Sometimes, they must even submit all this to the original or current investor who holds the mortgage for a decision on whether to accept, counter or reject the offer. You can see how this can bog down the entire process.

Finally, after getting the okay or responses from everyone they need to get approvals from, the offer is accepted, countered or rejected. This process can take up to 6 months, sometimes longer. Many of us are often surprised that the lender does not foreclose, but often it is entered into the system and taken out of or away from the foreclosure department while the short sale is negotiated.

It doesn't always take a long time. As lenders have had to deal with more and more short sales, some have developed a much more efficient system to deal with them, giving guidelines to the negotiators on what a reasonable offer would look like, terms, what they as the lender would be willing to pay for in costs for the buyer, etc. This can cut down significantly on the amount of time it takes to get a response from the lender(s) for a short sale.

Many buyers get tired of waiting for the response. In our market in Las Vegas, this time lag could cause a property to drop more in value making the offer made less than attractive. For example, I was involved in one short sale that between the time the offer was verbally accepted by the lender and receipt of the written acceptance by the lender, the property had dropped $30,000 in value lower than the verbally accepted offer. Of course, the buyer was not interested in paying $30,000 more for the property than it was now worth, so the buyer refused the counter. On the other hand, because a short sale property had already been assigned a negotiator, I completed a cash deal on a short sale in 8 days from offer to closing.

In the Las Vegas market, as I'm sure in other markets as well, there is a little less competition on short sale properties. The process deters many buyers as well as real estate agents who don't want to deal with the phone calls, documentation, and more.

If you are considering offering on a short sale property, do a little bit of homework. Talk to your agent about the process to decide how knowledgable they are on the subject. Find out if a negotiator has been assigned or if you're starting at the beginning of the process. Great deals still abound on short sale properties, but make sure you understand the process and how it may or may not affect your offer by the time it gets accepted.

If you'd like more info about the short sale process or short sale properties in Las Vegas and the surrounding area, I can be reached at LasVegasExpert@yahoo.com.

Henderson working on New Heritage Park Center

I have recently moved back to Henderson. I love that it's close to all the activity of the Las Vegas Strip yet far enough away to truly be the suburbs.

The part of Henderson I live in is a rural preservation area. We have no streetlights, neighbors have horses, all of the lots are big and all the houses are custom. Of course, the downside is some of the homes are much older and they reflect it. But the tradeoff is worth it to me. We have quail and bunnies hopping around the yard, its very quiet other than the birds chirping, and having only lived in my house a little over a month, I have already met my neighbors.

I was thrilled to see that the City of Henderson is building a brand new Heritage Park Center which will offer an indoor aquatic center which will be open to the public as well as be used by Clark County School District swim teams. There will also be a therapeutic warm pool. This facility will also offer a new Senior Community Center, offering lots of amenities and services including activity center, billiards, computer room, crafts, television room, card and dining rooms, and a library. Bus service will also be available.

If Henderson sounds like a good option for you, don't hesitate to call or email me to help you find a new home in this great community.

Heather Peck
Rosen & Company West
702-595-7380
LasVegasExpert@yahoo.com
www.HeatherSellsVegas.com

Las Vegas - Ghost Town?

I was on the phone the other day with another investor living in a different market. He told me he heard that Las Vegas was becoming a Ghost Town. The market was so bad here, people were leaving Las Vegas in droves.

I had to chuckle. Although, yes, we have the distinction of being the worst or almost the worst real estate market in the country with the highest number of foreclosures, we have another new honor. We are also in the top ten of undervalued market, with our market being considered up to 40% undervalued. Read about it here: http://money.cnn.com/2009/06/04/real_estate/home_affordability_soaring/index.htm.

Of course, this article doesn't mention, or maybe they don't know, that 50% of the properties currently listed for sale are under contract, and another 10-15% are juggling multiple offers. When typically pulling properties off the MLS to show a client, you would just search for what's available, choose the ones to show and go. Today, because of this market being very competitive, you need to call the listing agent or their team and see how many offers are on it. In fact, its not uncommon to hear there are 4 offers, 10 offers, 25 offers or more, or even that they are no longer accepting offers because they're countering all the ones they currently have.

So yes, we have a lot of foreclosures, but first time buyers and smart investors are snapping them up as fast as they get listed. If you've been sitting on the fence waiting to get a deal, I wouldn't sit there too long.

Loan Modifications - Real or Fraud

Loan modification options are being offered everywhere. "Let us help you save your home from foreclosure." "We can lower your payment." Are these options real or a scam?

Loan modifications do exist, and yes they are real. However, caution should always be taken before you sign up with a company to do your loan modification. Don't automatically assume that because they say their process is backed by an attorney that their program is any more legitimate.

First, what is a loan modification? A loan modification is when your mortgage lender agrees to adjust your mortgage payment. That adjustment may be temporary or permanent. They may change the terms of your mortgage from adjustable to a fixed rate. They may lower the payment for 1-5 years, or permanently. They may suspend or allow you to stop making payments for a few months but put that amount on the back end of your loan, meaning you pay the same but you'll just pay on your mortgage longer. It all depends on your lender and what type of loan you have. It also depends on what caused you to require a loan modification, how long your financial situation will take to correct itself, and when or if it will improve.

Many people pay loan modification companies out to desperation in order to stop their foreclosure and save their home. Often they pay $1,500 to over $7,000, and then later discover that not only did the loan modification not get approved, the company may not have done anything to stop their foreclosure at all. I'm not saying that every company offering loan modifications is a fraud, but you first need to know if you're even eligible.

As painful and as scary it might be, call your lender. Make sure you get to the department that will actually be able to help you with your loan modification. Don't tell the receptionist who answers the phone, they don't know anything, can't help you and don't care. Make sure you speak to the Loan Modification department. Yes, there usually is one. If they won't help you or tell you you're not eligible, ask them why. This is the information you need to make a decision whether to seek outside help or not.

If you really can't face speaking with your mortgage lender, my next suggestion is call a local real estate agent who specializes in short sales. If they understand this market and understand what makes a successful short sale, they should be able to either explain whether a loan modification will be a good option for you as well as explain all your other options including short sales, foreclosure, deed-in-lieu, etc. If they don't know these things or can't explain them, call another agent. This is an avenue I recommend to everyone because its FREE advice. Loan modification companies have the goal of getting your money whether or not you're a good candidate, and even if they say they'll refund your money, wouldn't you rather not spend it before you find out they can't help you?

If your financial setback is temporary, this may be a great option for you. However, if you have no equity in the property, or your income will not improve in the near future, you're probably better doing a short sale on your property.

If you'd like more information on loan modifications and short sales, don't hesitate to call or email me.

Heather Peck
Rosen & Company West
702-595-7380
LasVegasExpert@yahoo.com
www.HeatherSellsVegas.com

Working With Investors - Do Your Homework!

As a real estate agent, I'm sure you've had lots of wanna be investors come out of the woodwork who want to take advantage of this great opportunity in purchasing and reselling REO and short sale properties. They tell you they have funding, provide you with a proof of funds letter, and have you start making offers. However, when its time to close, they don't follow through and the deal falls apart. WHAT HAPPENED?

The key is in understanding what kind of financing or proof of funds they actually have. I've discovered some investors only have transactional financing, meaning they only have funds to close the property and intend to resell the next day to another buyer. Although that's fine, if its legal in your state, and the title company is willing to perform a double close transaction (some are and some aren't), make sure you know the facts on the other end of the deal ..... in other words, know your investor's exit strategy. Does the investor intend to buy and hold, resell immediately, or rehab then flip, etc. Knowing this ahead of time is very important.

I'm not saying don't work with investors -- this is a great time to work with investor buyers. Investors are currently buying a majority of the properties in Las Vegas right now, absorbing a lot of short sale and bank owned properties for amazing prices. However, it is a must to understand your investors exit strategy in order to manage the first, and maybe subsequent transactions, getting you multiple commissions.

If they plan to hold the property for at least 90 days to resell to an FHA/VA buyer, make sure your investor has that type of financing in place so you don't get surprised when the deal doesn't close. In otherword

Publish Post

s, do your homework on your investor/buyer. It will save you a lot of time, effort and commissions, not to mention wear and tear on your reputation working with other agents in your community.

Now get out there and make some money!

Las Vegas in 2009 - Good Deal or Not?

I read lots of blogs, twitters, and all kinds of bulletin boards and articles on real estate. I can't help it, its become an obsession. I not only follow real estate in Las Vegas, but I also follow real estate across the country, how other markets are doing, and what is considered a good deal.

Everyone is now speculating again about Las Vegas. For a while, Las Vegas was the darling of the real estate world. We were experiencing record appreciation, so much so, that many people who shouldn't have been investing in advertently drove up the prices in our market, setting us up to fail. There was no way we could continue at 15-25% appreciation a year -- it just was bound to end. And boy did it end.

In 2008, Las Vegas homes dropped up to 31% in value - WOW!!! We're now back to 2002/2003 prices. Homes are selling for about $100 a square foot. You can't build a nice house for that today. Of course, there are some hold-outs who want to believe their homes are worth so much more, and if you've built a really high end home with tons of custom touches or its on a substantial amount of acreage, it may be worth a little more. However, you must realize that until the remaining homes get absorbed and we get caught up with the homes still to come on the market, $100 per square foot give or take is the reality.

Many buyers and investors are taking notice. The thing that just came out and shocked me the most, we are still in the top 10 of states with the highest growth! We're still growing at the rate of almost 2% per month in population. What does that mean exactly?

It means that even though our real estate is at low, low, undervalued prices, Las Vegas still represents a great opportunity to be here as things smooth out. Interest rates are at all time lows! I'm working with lots of investors and buyers who are able to take advantage of this. In fact, some investors are coming in with a new business plan - buy the property with the future tenant in mind. In other words, if buying property and lease optioning it makes sense to you (it certainly does to me), then let your tenant pick the property. Of course, check out your tenant before you rent to them, but realize this is a great opportunity to pick up tenants who make good income but lost their home to foreclosure because they bought with an adjustable mortgage that was going to reset to 2 times their payment and couldn't go from paying $2500 a month to $5,000 a month.

This is the time when you can get great properties that will cash flow for you, buying bank owned properties at a steal, putting less than $5000 into it with paint, carpet and maybe some appliances and having it provide you great income. As the market gets better, and it will in the next 2-3 years, your tenants can buy or, if they move on, the property will cash flow even better for the next tenant/buyer.

This is your chance to do what everyone else was doing to make money in real estate 20 years ago. Don't let this opportunity pass you by. I'm not.

Heather Peck
Rosen & Company West
702-595-7380
LasVegasExpert@yahoo.com
www.LuxuryShortSalesandREOs.com

2009 Brings Great Opportunity

I speak with both investors and potential buyers every day. They all want direction, but all have the same belief, a belief that I share -- 2009 is a great opportunity to make money in real estate.

The most recent report out shows real estate prices dropped 31% in 2008. That's unbelievable. As fast as we had a market rise in 2005, we've had the same drop in 2008. But now, our prices are even lower than they were in 2003, basically, they have no where to go but up.

This is the time when most investors are taking a good look at Las Vegas. We have a unique market and because of that, we're predicted to recover faster than many markets. As the economy dampens income on smaller casino markets and some fall away, Las Vegas will again become the place where you can not only game but have an experience you can't have anywhere else. With that will come more tourists again, which drives jobs, income and of course housing.

So, what should be your plan? Your plan should be to take advantage of this great opportunity to buy homes at 50% or less than they sold for 2-3 years ago. Not every property, bank owned or short sale, is a great deal. It takes an experienced agent to recognize what property is going to offer a good bang for your buck.

If you're one of the unfortunate folks who lost your home in the last year, don't give up hope. There are many investors out there who are willing to lease option to you, assisting you in getting your next home with the opportunity to buy it while your credit recovers. These investors understand that what happened was not your fault and, although they are investing in real estate for financial rewards, they also want the folks who rent their properties to take ownership by working with them to eventually buy it. 2009 can be your year too!

So plan ahead for a much better year. We have a new president, a changing economy, and an opportunity to learn from our mistakes and make 2009 a great year.

If I can help you either become a real estate investor, or lease option your new home in Las Vegas, don't hesitate to call or email me.

Heather Peck
Rosen & Company West
702-595-7380
LasVegasExpert@yahoo.com
www.LuxuryShortSalesandREOs.com

The Las Vegas market has been unusual of late. Everyone wants to know if now is the time to buy. I don't normally do statistical reports, but I thought this was significant.

As of November 3rd, there are over 22,000 single family homes on the market and 25% of them have accepted offers (either contingent or pending), and out of almost 5500 condos and townhouses on the market, 17% of those also have accepted offers on them. That doesn't include properties where a bank is involved (bank-owned or short sale) that has offers the bank hasn't accepted yet.

OK, what does this all mean? The Las Vegas market has lots of buyers taking advantage of the current prices. I ran statistics on each area here in Las Vegas. We have broken our market down to 6 main parts of town but the theme is clear. Out of 7600 properties that have sold in the last 90 days, the average price is just over $227,000 and on the market less than 60 days, selling at $111 a square foot, and at 99% of list price.

So, the properties are selling are priced realistically, and buyers who think they can come in and lowball properties are finding that there is a lot of competition for the great properties and they must offer list or just below list price to be taken seriously. Even over the last 6 months, these statistics have held fairly steady. One more thing, although the Las Vegas market was dropping like a stone for awhile, on average of 3% a month, that seems to have slowed some to about 1% a month. Where do I get that? Well, I'm not an expert statician, but a 6 month average showed properties selling for $117 a sq ft, and now at $111 a sq ft, that's a 5% drop in 6 months, or just less than 1% a month.

OK, so what's the point? The point is, this is a great market to get a great deal. These deals won't last forever. Now is the time to take advantage of the great Las Vegas real estate market.

What's Up With Short Sales?

Short sales are on the news every day, but many people still don't understand what they are. Very simply a short sale is when the lender who holds the mortgage allows you to sell your home for less than you owe. So if your home is now only worth $200,000 but you owe $250,000, and some one offers you $175,000, the lender says OK, we'll accept $175,000 and you the homeowner are considered paid in full.

Are all short sales this easy? NO! Absolutely not. First, the lender wants to know why they should accept less than you owe. As the homeowner, you have to be able to show why you can't make your mortgage payment anymore. That means you'll have to provide a lot of information like bank statements, tax returns, paycheck stubs and a letter explaining why you need to sell. Just because your house isn't worth what it was IS NOT a good enough reason. And .... you must be using this property as your primary residence. If this is an investment property, the lender MAY let you short sale it, but they may pursue you for the amount of money they lost (what you sold for vs what you owed). OR they may send you a form that also goes to the IRS and you may owe taxes on that amount of money. If this happens, you need to check with your tax or financial advisor.

OK, you submitted all the paperwork to your lender, and they agreed that you're in a bind and say you can short sale your property. They may even tell you what they'll accept. PHEW!!!!! That's a relief, right? Not quite. Now you actually have to sell your house. There is no short sale unless there's a buyer.

This is where its best to rely on a real estate professional who can help you prepare your short sale package for the lender, negotiate with the lender so they will not only agree to the short sale but agree to a reasonable price so you could actually have a chance to sell, and then market the property to get a buyer for it. Many experienced real estate agents have buyers who are in the position to get a great deal, and will take the opportunity to get a well-priced preapproved short sale. Most lenders also require you to have your property listed with a real estate professional so they feel that your property is being properly marketed and has the best chance of being sold so they don't have to take it back.

If this is the situation you're facing, don't do it alone. If you need assistance or a referral to a qualified short sale specialist in your area, feel free to contact me and I'll assist you with someone who is experienced at this process in your area. Not all agents are familiar with this detailed and complex situation or can help you get everything you need done. You are not alone and it is important to rely on a specialist in this difficult time.

Heather Peck
Rosen & Company West
702-595-7380
LasVegasExpert@yahoo.com

Are You An Optimist Or A Pessimist?

I read and participate on a number of blogs related to real estate. Some people, like me, are optimists. We understand things are bad but feel that there are glimmers of hope to be grateful for. Pessimists are out there not only to spout doom and gloom, but capitalize on how everything is bad, getting worse and won't get better for years, if ever. My dilemma is do I spend time trying to convince people that their outlook affects everything, or join other optimists by putting on my rose colored glasses and seeing things in a better light?

In the early 1980's, we were in the midst of a huge recession, watching jobs vanish and dealing with paying double digit interest rates on our mortgages. There wasn't the same kind of creative financing that went on just two years ago, but naysayers and black cloud spouters were everywhere. And then the sun came out. We came out of the recession, interest rates dropped, the job market improved and real estate again became a good investment.

Then in the late 80's and early 90's, with little oversight, we had the Keating disaster with all the savings and loans. Millions of people lost tons of money, tons of jobs, and real estate in many areas such as Arizona took a nose dive. (I know only because that's when I foolishly jumped into selling real estate full time). Great fodder for those naysayers and doom spouters again. But, this too did pass. Cooler heads prevailed, regulatory steps and oversight were put in place, jobs reappeared and real estate again recovered.

Now we're in the 21st century. After an insane record run on real estate complicated by greedy banks and rose colored glass wearers refusing to acknowledge that this freakish growth could not possibly continue, we're back to deciding if the glass is half empty or half full. In our local newspaper this morning, experts and pundits much smarter than me state that Las Vegas has an existing home inventory of about 10 months which, according to Larry Murphy president of Sales Traq, is just outside the norm of 6-9 months worth of inventory which is considered healthy.

What does this all mean for real estate, or specifically Las Vegas? No one is sure, although with prices back to being reasonable and by that I mean the median price on a home in Las Vegas dropped back to $225,000, property is back to being considered a good deal. New home sales are not fairing so well, but resales are back to selling like hotcakes, well warm cakes anyway. Our prices have dropped on average just under 20% from a year ago. Not great news for anyone who bought within the last two years. Great news for people who are shopping now.

Is this good news or bad news? For the naysayers, they continue to predict that prices are going to continue to plummet. Hang on to your money they say! Buy other places but not Las Vegas! Is that because they want you to buy where they bought so they'll feel good about their investment? I prefer to think that there is a light at the tunnel and now is a great time to buy property in Las Vegas. I realize that there won't be any great rebound in prices any time soon, but there are a lot of great deals on gorgeous properties (and some not so gorgeous). We're back to seeing multiple offers on the good ones, something that hasn't happened in a while.

So for all you naysayers out there who would like to continue to wallow in doom and gloom, casting dark shadows on all who come near, I'll continue to smile and wave from my cloud with the silver lining while wearing my rose colored glasses and drinking from my glass that's half full. I see bright spots in the coming year and believe now is a great time to invest in real estate because after all, especially when it comes to land, God isn't making any more.

Are You Going to Miss The Boat?

No one wants to believe it, but things are heating up in the Las Vegas real estate market. Yes, we're number one in foreclosures, but its also an amazing time to get a great deal.

Last week, I showed a first time buyer couple eight homes, even though I had ten lined up. When we arrived at number 8, they said STOP! This is the one we want. So, I called the listing agent only to learn that 4 other offers were being submitted on this exact property. We are back in the multiple offer stage.

I will be the first to admit that this seems to be restricted to homes listed at $200,000 and under, but with all the bad news floating out there, who would believe we were actually getting multiple offers on properties.

Do all properties deserve multiple offers? Of course not, but there are some outstanding properties for a steal right now. Out of the over 27,000 properties listed over 24% are either in contingent or pending status. I think that's amazing for a bad real estate market. Over 10,000 are listed at $200,000 and under and 29% of those are under contract.

So I'm telling all my clients, if you find the house that works for you or you're looking for a great investment, now is the time to jump. Because there is a 1 in 3 chance the property you like has other people who like it too, and it may be gone tomorrow.

If Vegas Is So Bad, Why Are So Many Properties Selling?

Everyday I hear on the news what a bad market Las Vegas is. This is often repeated in the newspaper. Inventory is up...Prices are dropping...This is not the place to invest...blah, blah, blah.

Yet, I've been working with a number of people who don't agree. We spend time looking for investment condos in the low $100Ks, and I've found quite a few in very nice communities. In fact, I just came across a unit (no its not my listing) in Silverado Ranch. Silverado Ranch is located on the border of Henderson, and close to the Strip. This particular condo offers two bedrooms and tons of upgrades including granite countertops and maple cabinets in the kitchen, hardwood floors, ceiling fans and two master suites with walk-in closets. The community is gated and of course has a sparkling pool and spa.

These deals are out there and they don't last long. The biggest problem I've discovered is buyers who can't make up their minds and then when they've decided to make an offer, the property is already under contract. They've missed the boat. In fact, right now any property in Las Vegas and Henderson that's in decent condition and priced under $200,000 are selling like hotcakes with multiple offers. Huh?!?!?!

It seems these properties make excellent investments because they ..... wait for it ..... cash flow. That means if you buy it for an investment, you can rent it for at least what its costing you or can even make a little money. A 2 bedroom condo in this community rents between $925 and $950 a month. This particular condo will cost approximately $880 a month (including principal, interest, taxes, insurance and HOA fees -- assuming you'd put $20K down on this condo listed for $120K). That's $45 to $70 a month cash flow -- not a ton of money, but not in the negative. It's been quite awhile since we've been able to say that.

So if you've been looking for the right time to buy or jump on the investment, NOW is the time. Don't hesitate to call or email me regarding this or any other investment property I can help you with.

Heather Peck
Rosen & Company West
www.heathersellsvegas.com
702-595-7380
lasvegasexpert@yahoo.com

Lake Las Vegas - An Oasis in the Desert

Water communities are not that unusual in the desert. Even here in Las Vegas, we have Desert Shores and the Lakes over in Summerlin. There's also great views of Lake Mead from many properties in Boulder City. But none of these areas have everything to offer like Lake Las Vegas.

Surrounding a man made lake just 5 minutes from Lake Mead is a variety of gorgeous townhouses, condos, condo hotel units and upscale homes. This area not only has a refreshing private lake for a view, but also offers its own village with shopping, restaurants, and casino for gaming. Lake Las Vegas also offers a number of special events including outdoor concerts, art shows, and ice skating on a floating barge during the winter holiday season. Don't miss the amazing award winning golf courses of The Falls and Reflection Bay.

South shore offers guard gated entry to a number of different single family homes and midrise condos including Mantova and the Tennis Club. North Shore has gated communities comprising of single family homes, condos and townhouses.

Just 20 minutes from the famous Las Vegas Strip, this amazing location seems worlds away from the hustle and bustle of all the activity on Las Vegas Blvd. If you're just planning a visit, you can enjoy accommodations at the Ritz Carlton, Lowes or the condo-hotel units next to the Casino Montelago. Lake Las Vegas is also a popular location of vacation rentals in all type of accommodations.

If moving or visiting Las Vegas, this is one location that needs to be on your visit list. There are great deals in this gorgeous location that won't be there long.

Lease Options - Good Or Bad

Lease options are a great way to buy a house. You don't have to come up with a 20% down payment, lenders aren't going through your life with a fine tooth comb, and you get to try on a house and neighborhood before you buy. Part of your monthly rent is also often applied towards a down payment when you buy. But the best part is if you don't like it, you don't have to buy it.

For sellers, its a great way to get a great tenant. Its a fact that if someone has a vested interest in purchasing the property, they'll take better care of it. They put up some option money upfront which will be applied to their down payment when they buy your house. If they choose not to buy it, the option money is nonrefundable. Even when you credit them part of the rent towards the down payment every month, if they don't buy, they don't get that money back either.

Sounds Great! What's the downside? The downside is only about 20% of lease options are ever completed. Usually its because the buyer couldn't get their credit together enough to actually qualify for a mortgage. But lately its may also be due to the seller possibly losing the house to foreclosure. They may have gotten behind on the payments for the property because the mortgage just went from a low monthly ARM payment to a huge fixed payment and the seller can no longer make the payments because the rent they're receiving isn't enough to pay the mortgage. Its a risk for both parties.

One more thing I want to make note of. Sellers please note that just because someone chooses to lease option doesn't mean they're stupid or can't read and they don't know what is going on in real estate. They're not going to pay more for your house than its worth and they're not going to pay much more than market rent. If the value on your home has dropped in the current market, and thanks to the media reminding us, values are still dropping in some parts of the country (especially here in Las Vegas -- houses dropped over 20% just last year and continue to drop 1-2% a month, more in some neighborhoods than others). That means that buyers will NOT pay $50-100,000 or more than the property is worth when its time to exercise their option to buy. The house will still have to appraise. If the house would rent for $1500 a month under a normal lease, a lease option buyer is not going to pay $2500 a month just for the privilege of lease optioning. It is reasonable to get $100 to $500 more a month (depending on the size of the house) IF you're going to credit that amount to them when they exercise their option. And they probably won't come up with 10-20% as an option fee. 1-2% is reasonable. If they had 20%, they'd buy, wouldn't they?

Would I recommend lease options as a way to buy or sell? ABSOLUTELY, with two caveats.

First, as the potential seller you must understand that the buyer is probably buying this way because they have shaky credit they need to work on and need time to build up a down payment. If the buyer had great credit, they would be buying not leasing. Please be reasonable when lease optioning your property. Its yours and you have a right to lease to whoever you want, but lease option clients are usually better than just renter tenants who don't care about the house or condo they're renting because its not theirs.

For the buyer, you must be diligent and check on the status of the property you're lease optioning so you're not surprised when someone knocks on your door to say the house just got foreclosed on and you have to move. If you want to know how to check this out without paying an arm and a leg to find out, call or email me and I'll tell you how. It's public information and readily available. Also remember, that the option money you put up is not refundable if you don't buy the house or condo. It was a promise to the seller, and now that money is theirs.

If I can help you find a lease option or help you lease option your property, drop me an email or give me a call.

Heather Peck
Rosen & Company West
www.HeatherSellsVegas.com
lasvegasexpert@yahoo.com

The Common Cry In Las Vegas "Are We There Yet?"

On the front page of our illustrious daily newspaper the Las Vegas Review Journal yesterday there was an article titled "Homeowners, you can almost touch bottom." It too rang out the common whine among most Las Vegas property owners "Are we there yet?"

People much smarter than me including the Massachusetts research firm Global Insight and an Ohio bank-holding company National City Corp. showed that us lucky Las Vegas and Southern Nevada dwellers (to use their words) are showing our first move towards undervaluation since they started to following our market in a joint report in 2004. Noted that our market dropped more than 20% last year, and the first quarter of 2008, the median home price in Las Vegas is $232,600 or just 3.1 percent below the value that historical market trends establish as sensible or healthy. What does that mean exactly?

It means that for the first time since 2004, our homes are worth just a little under what they should be or at least would be if we didn't have that outrageous value spike during 2005 & 2006. We are now considered fairly valued. Do you hear that home buyers and investors? We're now back to being a reasonable market based on the things that count like employment opportunities, climate and a great location for family and friends.

The one thing that really stood out for me was when Richard DeKaser, chief economist for National City stated "One thing which is clear is that the majority of Las Vegas' price correction is now behind it." This was reinforced by Ken Perlman, vice president of the Sullivan Group, another group of real estate advisors, noting that "It suggests that buying a home in Las Vegas is becoming more of a reasonable proposition. I do agree the biggest price declines are behind us."

Now no one, not even these experts can agree on how much lower our market will go or when the valuation slide might stop, but one thing is sure, they all agree that "We're much closer to the bottom than the top." Of course everyone has an opinion, some good some bad.

So a deal is a deal is a deal. If you're willing to buy and hold for 5 years, not an unreasonable proposition, this is the time to be looking for a good deal. If you're an investor, and the property will cash flow, get it now while the getting is good and lease or lease option the property. If you're looking to move up or even buy your first house, who wants to move sooner than 5 years anyway.

If I can help you find a property, don't hesitate to call or email me. You can visit my website at www.heathersellsvegas.com or email me at lasvegasexpert@yahoo.com.