OK…I posted this over a year ago right after I saw it…and it bears posting again for those of you, your friends, families and associates who havent a clue where this whole thing is going…but WANT to have one…
Breaking News…The allowed time to CLOSE a transaction where the buyer is using the home buyer tax credit has been moved FROM the end of June…extended to Sept 30th 2010!
NATIONAL ASSOCIATION OF REALTORS must receive out collective gratitude for playing a part to make this happen.
WASHINGTON — Homebuyers would get an extra three months to complete their purchases and qualify for a generous tax credit under a bill overwhelmingly passed by the House on Tuesday.
Under current law, homebuyers who signed purchase agreements by April 30 have until Wednesday to close on the sale to qualify for tax credits of up to $8,000. The bill would give buyers until Sept. 30 to complete their purchases.
The extended deadline only applies to people who signed purchase agreements by April 30. The National Association of Realtors estimates that about 180,000 homebuyers who already signed purchase agreements are likely to miss the Wednesday deadline.
“We owe this to the people who have essentially followed the rules who are caught by a closing date,” said Rep. Sander Levin, D-Mich., chairman of the House Ways and Means Committee.
The bill passed 409-5. It now goes to the Senate, where Senate Majority Leader Harry Reid, D-Nev., has sponsored a similar measure.
The popular tax credit has helped to stabilize the nation’s slumping housing market. More than 2.6 million taxpayers claimed the tax credit through April — claiming $18.7 billion — according to the Internal Revenue Service.
The Realtors group says the tax credit has generated 1 million new home sales that wouldn’t have happened otherwise.
The tax credit for first-time homebuyers was part of President Barack Obama’s economic recovery package enacted last year. In November, Congress extended the credit and expanded it to longtime owners who bought new homes. First-time buyers were eligible for a tax credit of up to $8,000. Current owners who bought and moved into another home could qualify for a credit of up to $6,500.
The Realtors group has been pushing hard in Congress for the extension. Mortgage lenders, the trade group says, have been swamped with borrowers trying to get approved by the end of the month.
Delays with mortgage lending and appraisal companies have meant that home sales are taking far longer to complete this year.
“A lot of lenders weren’t able to handle the influx of loans that came with the tax credit,” said Lucien Salvant, a spokesman for the National Association of Realtors.
There have been particularly long delays for buyers of so-called short sales — ones in which banks agree to accept less than the total mortgage amount. In Las Vegas, for example, short sales made up nearly a third of all sales last month.
Many banks “just don’t have the process to the point where they can do it in a reasonable amount of time,” said Jack Woodcock, a real estate agent in Las Vegas. Extending the tax credit deadline, he said, would be a welcome relief to those borrowers, many of whom “made their decision based upon that tax credit.”
Source: Associated Press writer Alan Zibel contributed to this report.
I, like most realtors and lenders have been working to save homes and help homeowners in distress for the better part of two years. And while we have had some success most of the work is just a circular wheel to no where. In the mean time more homeowners are losing their homes and the banks/lenders are getting richer and richer. All at the expense of us, the economy and the country.
I have attended every workshop, webinar, seminar that I can about this issue and there seems to be no answers. The longer we are engaged in this mess the messier it gets.
So how do we solve it? To really get our lives back on track you have to fix your mortgage. Right now the only solution is to walk away. Modifications, chapter 13 BK’s and anything else just prolongs the pain.
But what do you do? Where do you move? How do you recover from the credit ding?
Your bank/lender will sell your home to a completed stranger for 30 cents on the dollar but not to you. How unfair?
Lenders in my mind are so evil that many won’t even allow you to stay in your own home at all costs.
So how do you get your life on track?
Sell your home to a complete stranger, have a complete stranger rent your home. Have a complete stranger put all the utilities in their name. And after doing all that maybe you could find a place to live (wink, wink). And maybe just maybe in 42 months after the smoke has cleared and America moves onto the next big crisis coming down the pike you could buy your old home back. So far I haven’t seen that restriction anywhere. (the buy it back part)
It really is the only solution right now. Short sale your home; take the credit hit, rent at half of your old mortgage payment. Never move, and maybe buy back your old home in 42 months. You will have a new loan amount 1/3 the previous amount. And get on with your life. If your current on your mortgage miss the payments while you short sale, no credit difference. Take the mortgage money get three more credit cards, secured or unsecured use them and rebuild your credit. Two years from now you will have the same life with better payments and loan basis.
If you understand what I am talking about then contact me. If you know someone that may fit into this scenario, you can contact me for them and I will meet with them. If you are a realtor with a short sale listing and you do not have a buyer, call me. If you know someone that just wants out of their house let me know. I have an investor that will facilitate these deals all day long. Every deal we do is a cash closing with a 30 day close time. We can close faster than the banks can approve them. Most of the time we will buy the house on the spot, pay cash and you will have a 30 day closing.
If you’re a homeowner and would like to speak with an EXPERIENCED real estate attorney about your options with your home and mortgage, I offer ALL homeowners a FREE consult with my attorney group.
Please contact me for any help you need. Thanks!
A search of the Greater Las Vegas Multiple Listing Service reveals super lender GMAC has listed nearly 100 properties with local real estate agents in its effort to liquidate it’s bank owned inventory.
This number does not include short sale or re-sale properties but does include single family residences, townhomes and condominiums; some are in good condition while others are just plain ugly and need cosmetic and/or some degree of rehab.
Listed prices are intimidating to many home buyers but rarely intimidate the true real estate investor. To a professional investor and his real estate agent, the list price is just a number. The method of creating a “deal” in any market is the fearless ability to write and present aggressive offers to sellers like GMAC of distressed properties; and not merely one at a time.
The investment game is like any other business; a number of offers are needed to create the desired result – success in acquiring a home to live in or one to add to a portfolio.
A highly effective tool used by MERIT Realty agents in selling GMAC properties is the automated client/property notification system. It allows a client to submit his criteria for acquisition which is then entered into the MLS system. Once a property match occurs, the client and agent are automatically notified. Many times, this is the catalyst for the investor that allows him to strike before anyone else sees the property.
If you are a home buyer or investor and are looking for an edge in buying a GMAC short sale or foreclosure in Las Vegas or Henderson, then you need to request access to this advanced property notification system.
Best part? It’s FREE.
Access it 24 hours a day, 7 days a week at: HowToBuyABankHome.com
What makes a house ugly? Essentially, they are properties that are in need of some degree of repair – from minor cosmetic to full on rehabilitation.
Some ugly properties may lack such “amenities” as windows, doors, plumbing fixtures, flooring, cabinets, even entire air conditioning units and can become a popular hangout for drug addicts and vagrants. We have even seen instances where a disgruntled former homeowner has poured concrete down all the toilets!
Some cities can and do, fine property owners (typically banks) thousands for numerous code violations.
A particular ugly property in Sarasota, Florida was assessed $275,000 in outstanding fines from the city and $25,000 in code violation fines that the investor was able to have repealed to $375. He then purchased the property for $7,000 and resold it “wholesale” for $18,375 to another investor, who then sold the two-bedroom house for $30,000 to a “retail” (homeowner) buyer.
The key to success in this facet of real estate investing is to help people stuck in ugly houses or people who find themselves in ugly situations like foreclosure, divorce or job loss that need to move.
Using your local MLS and a highly qualified real estate agent is the fastest method of locating such properties. Some may be listed and some real gems may be in their private inventory: aka, “pre-listed”.
Before buying an ugly property, get it inspected by a certified inspector to reveal any hidden items that could lead to a HUGE evaporation of your investment dollar- making you an ugly investor.
You can access the entire Las Vegas MLS to find your next property at NO COST and with NO personal information needed at: HowToBuyABankHome.com
2009 update – The bubble has popped in the highly appreciated coastal markets and some of the inland markets related to them. Where will values end up? That will depend on area, but 30-40% drops from the peak prices are probable, with lenders losing 50% or more of their loan amounts on some properties. June, 2009 is seeing increased activity in Las Vegas and Henderson in the lower price ranges, it’s likely to be a couple of years before there is significant price appreciation. Look for specific under priced properties, do not count on appreciation to make a profit.
Most everyone will agree real estate markets that have had huge price increases for many years in a row cannot keep rising in price at the same pace as in the past. Other real estate markets have seen appreciation, but at a more moderate pace. A slowly appreciating market is far less likely to suffer a “bubble burst” than a market that has seen huge gains in just a few years time.
So, without relying on statistics provided by media sources, how do we find the appreciation rates in the area you are considering purchasing real estate in? The Office of Federal Housing Enterprise Oversight, or OFHEO, provides statistics based on the sales, or refinances, of individual properties. By using individual properties, OFHEO eliminates statistical variations caused by strengths in either higher end properties or lower end properties in any given market.
You can get to OFHEO’s House Price Index by clicking the link. You can compare individual state’s appreciation rates, review different Metropolitan Statistical Areas (MSA), or use their House Price Calculator to estimate the current value of an individual property based on a past purchase price and sale date. It’s good stuff.
If you are thinking about buying in an area that has had very aggressive appreciation for several years, you’ll probably want to be able to either re-sell the property fairly quickly, or hold onto it for many years. The fast resale approach, which shouldn’t exceed 6 months, will avoid any major downward price movement as long as you are paying attention to current market conditions. The long-term “buy and hold” approach is always going to be based on the property’s ability to cash flow. If you have a positive cash flow, market pricing cycles do not matter, you know in the long run that the loan will be paid down, and your property will eventually appreciate again. Buying a property to hold for a few years, then sell and make a bunch of money probably isn’t the best approach right now. However, if you are in an area that hasn’t seen explosive price growth, there isn’t really any bubble to burst, just invest any way you feel comfortable doing.
For more information on buying short sale and foreclosure properties in Las Vegas and Henderson, visit HowToBuyABankHome.com
Courtesy:AllForeclosure
Foreclosures occur when payments aren’t made on a loan that is secured by real estate, and the lender takes the security(real estate) because those payments have not been made. Understanding the process, and what steps you need to take at different parts of the process, is essential to successful investing in distressed property.
While it’s certainly possible to find properties selling for 50% of their potential fixed-up value, most people will find it easier, and more efficient, to focus on properties selling in the 65% to 80% of value range. Some of the value seasoned investors seek when buying these homes can come from the normal terms of the loan, such as very old loans that have been paid upon for many years. Some can come from price appreciation in a “seller’s market” where homes are appreciating rapidly in price. Some can come from the lender not wanting to deal with the property due to damage or necessary repairs, where the lender will accept less than they are owed on the property. So, how do you find these properties and what steps do you take? Let’s start at the beginning.
When payments aren’t being made on a loan secured by real estate, lenders will often initiate default proceedings when the third payment is missed. The owner still has possession and the right to sell or refinance the real estate, these properties will usually be called a pre-foreclosure property by many investors. Since lenders cannot release information about their distressed loans due to privacy concerns, and homeowners often do not want to publicize their situation, you need an alternate way to find these properties, along with owner contact information. That source of information is your county recorder.
Virtually all documents regarding real estate transactions are recorded and filed by the county recorder, and because they are public documents, you can access and search those documents. Most properties in default can be identified by the initial foreclosure document, which in most states, will be a Notice of Default or Lis Pendens. A Notice of Default, or NOD, is used in non-judicial states, while the Lis Pendens is used in judicial states. Because a judicial foreclosure is a court proceeding, you may have to search court records for the Lis Pendens instead of the recorder’s office, local procedures vary throughout the US. Also keep in mind that all Lis Pendens are not loan defaults, Lis Pendens means there is a legal action pending, and many Lis Pendens will not be anything of interest to you.
In a simple world, you’d be able to find your target properties by asking your county recorder for a list of all the NOD’s or Lis Pendens recorded that week, and they’d give you the list, with names, addresses and phone numbers along with other information you might want. It doesn’t work that way. But, since many recorders have established searchable websites, you can do something similar. Use the online recorder’s site to find properties by searching for those document types. That should get you a list of owner names and document numbers. If you can’t view the actual documents online, you’ll then have to physically go to the recorder’s office with your list, search by owner name or document number, and look at the document (Notice of Default, or Lis Pendens) which will reference the original loan, the property address and the default amount.
For more assistance on buying a short sale or foreclosed property in Henderson or Las Vegas, visit our website at: HowToBuyABankHome.com
Courtesy: AllForeclosure
Why Buy A Las Vegas Or Henderson Short Sale Or Foreclosure Property?
While homeownership comes with many responsibilities that you need to be aware of, most financial advisers say there are also many advantages.
But remember with all the benefits of homeownership comes responsibilities too – a mortgage, upkeep of a home and repair bills just to name a few.
How lenders assess mortgage applications has changed a lot since 2007. What was acceptable a few years ago may not be so today. The following are some common homeownership myths:
Myth: It’s a bad time to buy a house.
Fact: Mortgage rates for fixed-rate mortgages are at historical lows, creating stable payments and long-term savings for today’s homebuyers and house prices have fallen at a record pace. Additionally, there is some financial relief for first-time homebuyers through the recently enacted Housing and Economic Recovery Act of 2008 and foreclosures have increased to record levels, leaving lots of housing supply on the market with unequalled demand. The combination of these factors generally equals greater affordability, and makes now a good time for many to consider homeownership.
Myth: Buying a house is just too risky; I’ll end up in foreclosure.
Fact:The recent news on foreclosures is understandably frightening. Certainly if you lose your job, go through a divorce, or suffer an illness, you could have real trouble paying your mortgage, or rent for that matter. In recent years, we’ve even seen an increase in excessive obligation–just too many bills–as a reason for delinquency. While you can’t always solve for the unexpected twists and turns of life, good budgeting and responsible credit practices can decrease the likelihood of a foreclosure. Also if you have trouble paying the mortgage, contact your lender immediately!
Myth: You can’t buy a home in the U.S. if you’re not a citizen.
Fact:If you’re a permanent or non-permanent resident alien, you can purchase a home in the U.S. In order to qualify for a loan you typically need to be a permanent resident alien with a valid USCIS card or, a “Green Card” and Social Security number. If you are a temporary resident alien with a valid work permit and Social Security number and have been in the United States continuously for the last 2 years, with steady employment and good credit history you may also qualify for a loan.
To acces all FHLMC and other lender owned properties in Las Vegas and Henderson, visit this website: HowToBuyABankHome.com
Fannie Mae’s database includes only properties that are owned by Fannie Mae. Usually, when you buy a home, you deal with a seller who lives in the home. Fannie Mae has acquired these properties through foreclosure, deed in lieu of foreclosure, or forfeiture.
There is a wide selection of homes, including single-family homes, condominiums, and town houses—located in a variety of neighborhoods. The number, types and the sales prices of the homes that are offered for sale may vary substantially. Many of these homes are relatively new; however, older homes are offered in some areas. Some homes may require repairs.
Fannie Mae may make some repairs to properties to increase their marketability; however, the buyer should be aware that other repairs may be needed. Fannie Mae sells each property “as is,” which means that the buyer accepts the property “as is.” Fannie Mae is not responsible for fixing any problems after settlement.
Even if the house has fresh paint, brand new carpet, new appliances, perhaps even a new roof or siding, it doesn’t mean everything in the house is new, or even works.
Fannie Mae does not warrant or guarantee any work that may have been done on the property, whether as part of its efforts to sell the home or pursuant to conditions in the purchase contract. Where a home warranty is available, you may wish to buy it at your own expense.
You should also consider hiring a qualified professional to inspect the property, whether it has been repaired or not. Hiring a home inspector is a recommended practice, no matter what type of home you buy.
Additionally, Fannie Mae wants to be sure that prospective buyers will be able to complete the sales transaction, including obtaining financing when needed. Prequalification allows you to see how much house you can afford and the mortgage amount you may be able to qualify for before you make an offer on a home. It also helps you focus on homes in an affordable price range.
A loan prequalification doesn’t mean your loan is approved. You must apply for a loan separately, after you are prequalified and your purchase offer is accepted.
Two very common questions…
What happens if Fannie Mae gets more than one offer?
All interested parties may be asked to submit their best offer in writing though their real estate agent no later than a specified date and time. Fannie Mae may accept or provide a counteroffer determined to be in the best interest. Fannie Mae is not obligated to accept any offer submitted.
Can I buy a house directly from Fannie Mae without going through a real estate sales professional?
No. Fannie Mae depends on the expertise of local real estate sales professionals and accepts offers only through licensed real estate agents. You may work with any real estate sales professional to submit your offer.
To search for all FNMA listed properties in Las Vegas and Henderson, use this simple website: HowToBuyABankHome.com
That’s right. As of January 2010, MERIT Realty shows Wells Fargo Bank has 216 homes, townhomes and condominiums available for sale in Las Vegas and Henderson.
Many of them can be purchased with FHA financing which means minimum down payments of only 3.5% for 30 year fixed rate mortgages.
Once you’ve found a home you want to buy, you’ll need to negotiate a price with the seller and agree to a purchase contract, then it’s off to CLOSING!
Making an Offer
Unlike many major purchases which have a specific price tag, homes sell for whatever amount the buyer and seller negotiate. Your real estate agent should help you determine the appropriate amount for your initial offer. When you make the offer, keep these things in mind:
The Contract
The purchase contract, or purchase agreement, is a signed agreement between the buyer and seller describing all the terms of the transaction. Like other contracts, this document represents a legally binding agreement, so approach it with care. Your real estate agent is the only person qualified to prepare the contract for you and keep you legally protected. Purchase agreements typically include these items:
Remember that no two real estate transactions are exactly alike. Buyers and sellers bring different backgrounds, interests, and agendas to the negotiating table, and the purchase contract will reflect those differences.
Closing
The closing is the final phase of your homebuying and mortgage process, so now your new home is just a few steps away. If you haven’t already, make sure you do the following:
On closing day, ownership of the property will be transferred from the seller to you, and you will sign documents that acknowledge your rights to the property you have purchased, your agreement to repay the money you have borrowed, and the lender’s right to the property if you default on the loan. The escrow officer and title company will coordinate and distribute all the paperwork and funds, according to the terms agreed upon by you and the seller.
Then, it will be all yours!
For free access to all properties listed as foreclosures OR short sales in Las Vegas and Henderson, visit our website: HowToBuyABankHome.com
