Loan Modifications

The definition of a loan modification is:   A Loan Modification is a permanent change in one or more of the terms of a mortgagor's loan, allows the loan to be reinstated, and results in a payment the mortgagor can afford.

I have had many clients ask me about loan modifications and there seems to be few lenders that do loan modifications.  I was at a seminar last week and the topic of loan modifications came up.  A friend of mine who was a loan officer for many years although he no longer is a lender he was still being asked everyday about loan modifications.  In his desire to help people he did research of around 20 companies and decided to affiliate with one company.   I have read, listened to and emailed the owner and my friend was correct, this company seems to have a very good product for people who want to try and do their own loan modification.   They have a money back guarantee and if you wish to try the program I would very much like your feedback.   Mortgage Relief Formula

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. 

LAST UPDATED:  December 8, 2008
	Single Family					Condo/Townhome
	# Listed	# Sold				# Listed	# Sold
2004	60,661	35,260	58%		2004	11,306	7,581	67%
2005	57,943	33,529	58%		2005	11,474	7,872	69%
2006	64,049	24,130	38%		2006	15,589	5,826	37%
2007	62,783	15,279	24%		2007	15,243	3,276	21%
2008	61,038	24,924	41%		2008	13,076	3,694	28%

If you have any questions about these statsor anything else please feel free to contact me Chris Shouse Chris@ChrisShouse.com.  Also visit my favorite place to live in Las Vegas  Summerlin 

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

        There has been a lot of debate on home staging.  Is it worth it to a homeowner to pay a professional stagger to come in and make a home show ready?  Or can a homeowner just clear all their clutter and remove personal items to make a home in ready condition for buyers to come and look? 
     What about vacant homes?  With so many homeowners going into financial distress and either losing their home to foreclosure or just walking away.  What about the homeowner that just plain has to move, and with the market as it is can not sell their home fast enough?  So the home becomes vacant and vacant homes are largely unappealing.  Most buyers would rather see some furniture and a clean home for visualization purposes, than an empty somewhat dirty home. Vacant homes are being broken into and vandalized. 
    There was a crew of guys going around Las Vegas subdivisions with a van.  The van looked very much like a service vehicle, so the neighbors did not think too much about it. Well they were stealing air conditioners units and breaking in and taking all the appliances. Other homes are just getting broken into by homeless people and a lot of damage is being done to the interior of the homes.
     Well I have run across a company that may just have the solution for people that have to move and leave their home vacant while it is trying to be sold.  The company is called  Property Solutions of Las Vegas, LLC.    ( they have branches in a lot of area's of the U.S. not just Las Vegas)
      I was very excited when I ran across this company because it is at NO COST  to the homeowner or the Realtor® that is marketing the property.
   Property Solutions of Las Vegas,LLC   has teamed up with CareTakers of America who has been in business since 1985.  They have people who live in the home with their furniture and keep the home in show ready condition. The homeowner still makes their mortgage payments but there is no cost to have this service provided.  Think of the peace of mind the homeowner who needs to leave the area will have knowing their home is being taken care of.  The caretaker even pays the utilities. 
    Read for yourself all the materials provided on both websites and let me know what you think.  As far as I can tell it is a win/win situation for all concerned.

Today's Challenges Impact All of Us

The market today certainly is a challenge to everyone, Realtors®, real estate agents, buyers and sellers. loan officers, appraisers, even home inspectors.  Short sales talk have become a dinner topic along with foreclosures, and bank owned properties.  For sale signs litter the landscape of our neighborhoods.  Is it just me or does the main stream media just delight in putting out every bit of negativity they can find?

One of the things that  is having an  incredible impact on everyone is GAS PRICES.  They are impacting every aspect of peoples lives and I discover something new that is being impacted daily. 

As a Realtor® I need to look at working smarter.  When working with new buyers I need to really ask questions to get their desires down.  All their wants and do not wants.  Use email to send properties and ask for feed back.  Make sure that they have visited a lender of their choice and have be pre qualified so we know exactly what price range we are looking in.  Listing agents this is notice to you put as many quality pictures in the MLS that you can.  When I have my buyers in the office and we are picking out what we are going to look at there had better be pictures. Even better a wonderful video or an excellent REAL ESTATE SHOW©  If we can't see pictures well, let's just say your chances of getting your property shown goes way down.

When I take a listing you can bet I will point that out to the home owner, today more than ever pictures are worth a thousand words and more showings.  It will also behove me to make sure my presentation is such that the seller understands what a good price right up front is most important.  I have to make them understand what kind of competition is out there and why it is different than any other market in recent history.

I am a Survivor and I will survive this market.  Daily I am trying to think of ways I can work smarter and not give less service.   What can you do to make sure you survive too?

Medium Price of a New Home Drops

Now is the time to buy in Las Vegas.  The prices are dropping.  Along with short sales and foreclosures builders are wheeling and dealing also.  The Median Home Prices in the Las Vegas Valley have dropped below $250K. 

If you are thinking at all about buying a home here in Las Vegas, NOW is the time.