Part 1

The Contract  

This will be a five part series on buying a bank owned property.

From all accounts in the news Nevada leads the nation in foreclosures.  Las Vegas has the bulk of those homes.  How do you go about buying these homes and what do you need to know?  Much of the transaction is similar to a normal sell, the difference of course is the seller is a bank.

Another difference is you may not have a written acceptance right away.  The listing agent may notify the parties once the offer has been accepted but verbally at first.  The initial response can take 2-3 business days.  The written acceptance may take 5-10 business days.  Be AWARE that even though there maybe verbal acceptance it is still not binding until the seller has signed the acceptance.

The seller will then present to the buyer through their Realtors® a counter offer/addendum with additional terms and notices specific to that transaction. Buyers should check all of the terms and conditions of the counter as it will typically alter many terms of the standard residential contract that was required up front.  In Las Vegas that is a Residential Offer that your Realtor® filled out and you signed to submit the offer.

Some of the specific terms may include inspection periods, removal of any contingencies and very often a NRS113 which relieves the seller (bank) of any warranties on the house.  Other specifics include closing costs and closing dates with penalties attached should you not be able to close on time.

It is very very important to have your financing in order and a good loan officer that you and your Realtor® can work very close together on making sure you can meet the sellers (banks) deadlines.

There are bargains to be had in this market and things can work out well if you as a buyer are aware of what needs to be done to make this all run very smooth.  A good Realtor® can help make the process easier.  

The Foreclosure Crisis in Las Vegas
And Around The Nation

One day I hear and read and watch on TV that we have only just begun to see the full effects of the foreclosure crisis.  The next day that all seems to be swept under the rug and things are looking up.  It just seems you don't know who to believe and what to think about in regards to our futures.  Should we try and buy a new home, new car, new TV, etc.  Or do we sit on our money, stay put and make do with what we have.  No one has a crystal ball of course, but I do not want to live my life in fear from day to day.

I have been trying to figure out what happened?  I went to a foreclosure class recently and got a few facts.  Our teacher threw out these numbers.  9,000 letters of default are issued daily in the US. 400-500 are issued daily in Nevada.  The number that scared me some is 2.3 TRILLION ARMS (adjustable rate mortgages) have not yet reset! Now that is a scary number. Course it use to be you could not get a loan and credit was so tight.  In the Carter era in 1977 something called the Community Reinvestment Act it was to help communities get loans.  It has been deregulated almost every administration since.  Too read all about this act click here   Did this act have anything to do with the mess we are in now?  Seems to me it may have at least been easier for lenders to do very creative loans.

This is what is happening in Las Vegas right now.  If you go to a Trustee Sale you have to be a cash buyer or have a certified check.  The trustee sale is the event that concludes the foreclosure process. In states that have deeds of trusts as opposed to mortgages, the trustee is named in the deed of trust, which is the document that the borrower sign in addition to the loan documents. When a borrower falls behind with payments the lender can initiate foreclosure procedures by recording a notice of default. If the borrower does not cure the default after the notice of default, then a date for a trustee sale is set. The trustee will set a minimum bid for the trustee sale and if nobody bids, the property goes back to the lender. Keep in mind also if you bid on a property at a Trustee Sale you take on everything about that property, liens, back property taxes, and the IRS can come and take it away.

 When the properties go to AUCTION only 12% are going through.  Now the banks are trying to draw multi-offers by lowering the property to VERY low prices and then you have a bidding war.  I have a buyer right now and so far this has happened twice.  So if you are looking to buy a bank owned property, ask a lot of questions.  Ask how many times the price has been lowered, have your agent to check to see if there are any other offers and be sure you are willing to go up on price if there are.

Some lenders are now not even putting the properties on the market, but doing 5 year leases until the economy improves.  

Will the new stimulus package help? Time will tell.  In the mean time if you go to buy a bank owned property ask a lot of questions. 

The Year Of The OX

 Chinese New Year is the most celebrated and significant festival on the Chinese calendar and symbolizes not only the start of a new year, but a fresh start in one's life.  This year is the year of THE OX  I happen to be an OX so I am pleased to not only to have a New Year 2009 but a new start for my Chinese sign:)  

What is your sign? 

　You can read all about your sign Chinese Horoscope 

Chinese New Years begins on January 26th and runs for 15 days worth a celebrating ending on February 9th 2009.  This years celebration for the Las Vegas area will be February 9th 2009 at China Town in China Town Plaza.  Lots of good food, Chinese Arcobats and Dancers.  If you would like to find out more about the festivaties (702) 221-8448.  

UPDATE

Here I wrote this post and opened up the newspaper and there was a whole article on the festivites that will take place: 

THE LAS VEGAS BRIDAL EXPO... 

JANUARY 4TH, 2009...    THIS IS THE BIG ONE!

Single Family Residence

On The Market                16,836

Bank Owned                      5,511

Short Sale                          5,599

Foreclosures                         650

Pending/Contingent         5,391

Homes Sold                          362

Condo/Townhouses

On The Market                   3,474

Banked Owned                  1,451

Short Sales                         1,079

Foreclosures                            20

Pending/Contingent               622

Homes Sold                              60

These are the Stats for the Las Vegas Valley only.  Not Boulder City, Pahrump, or Reno only the Las Vegas Valley it does include Summerlin, Henderson and  North Las Vegas

If you are looking to move or invest in Las Vegas Please give me a call
If you have a home to sell in Las Vegas I would love to sit down and talk with you.

Single Family Residence

On The Market              11,082

Bank Owned                     5,218

Short Sale                        5,629

Foreclosures                        690

Pending/Contingent            301

Homes Sold                         15

Condo/Townhouses

On The Market                   4,545

Banked Owned                   1,388

Short Sales                         1,049

Foreclosures                           95

Pending/Contingent               45

Homes Sold                             2

These are the Stats for the Las Vegas Valley only.  Not Boulder City, Pahrump, or Reno only the Las Vegas Valley it does include Summerlin, Henderson and  North Las Vegas

This is what was announced in the middle of the summer.  I was very sad that the Star Trek Experience was going to shut down.

 After 11 years the Hilton has announce the end of the Star Trek Experience.  It was announced last week officially, but there has been rumors  for quite  sometime.
  I am a Star Trek Fan.  I have lived here 9 years and still have not made it down to the experience.  Now I will have until  Sept. 1  to do it or never see it.  How sad.  I was very excited because I will be at a convention on Sept 19.  I am staying at the Hilton even though I live here, as there are a bunch of my fellow agents coming in for the convention.  Well I thought I would finally have the time to see it and it will be gone.
  The official Star Trek Convention is Aug. 6-10th so this will be the final year.
   So if you are a big Trekkie now would be the time to come to Las Vegas.

That was then and this is now.  Headlines over the weekend say!

                                                             Boldly Going Downtown
                                                     Star Trek Attraction may be headed
                                                            to Neonopolis Mayor Hints

Mayor Goodman let the news slip and the developer for the struggling downtown Neonopolis was surprised when reporters asked him.  He did say, " they were close to a deal but he was not prepared for the news leak."  There are still a lot of negotiations to be done including with CBS who ownes the costumes. 
I really hope this goes through as I did not get to see it before it closed at the Hilton.  When I stayed at the Hilton in Sept. I walked around and Quarks bar was still there.  I really was sad that I had not had the experience.

Around Nevada

September 27-28th Candy Dance Faire   Downtown Genoa, Nevada Sugar in great proportions 4,000 pounds of handmade candy, 300 crafters and a dinner dance.  Sounds like a fun time and an old fashioned festival.  For information call 775-782-8696

October 17th-19th  Nevada Ballet Theatre presents the classical ballet Giselle .  The Bayley Theatre at the University of Nevada Las Vegas For information call 702-895-2787

October 18th Ghost and Paranormal Conference Crystal Bay Nevada A historic hotel plays host to paranormal experts, amatuer ghost hunters and some say a collection of resident spirits.  The Cal Neva Resort.  For information call 775-829-9010

October 25th-February 15th 2009  Reno Nevada Long May She Wave  a graphic history of the American Flag Hundreds of flag-related icon's.  Nevada Museum of Art 775-329-3333 for information.
 

Lots of fun activites in and around Las Vegas.  There is always something interesting going on.

Have You Always Wanted To Be a Policeman?

         The Las Vegas Police Department is hiring.  I heard this on the radio the other morning.  So for someone wanting to move to Las Vegas but did not have a job yet this may be your chance.  ( of course I can help you with either a rental or a home to buy)  Las Vegas police make one of the highest salary's of anyone in the US.  Starting is around 53K not bad and your benefits start from day one.

      There are a few requirements:

• You have to have a High School diploma
• You have to be able to pass a drug test  ( Ya Think LOL:)
• You have to be able to pass a written test
• You have to be able to pass a strenuous physical 
   
  
  For more information you can go to www.protectthecity.com

Before Kids can Return To School

     School starts on August 25Th in Clark County Nevada this year, because there has been some bouts of whooping cough all students going into the 7Th grade must have this vaccination before they will be allowed to attend school.  

    As of this writing more than 33,000 7Th graders still do not have their shots and will not be attending on opening day.  The news media, print and otherwise is really trying to get the word out.

   Teachers and officials do not want the kids to miss any class time.  There clinics around the valley to help get these vaccinations done.
 

Read More Here
 

    With that thought also in mind be aware the kids will be going to and from school.  So we really need to slow down and make sure they get where they are going safely.