How To Finance Your Henderson or Las Vegas Short Sale Or Foreclosure

Loan Origination Requirements

When a person is seeking a loan to purchase a home, the lender will usually require some down payment to make sure the borrower has something “at stake” in case the borrower runs into some financial difficulty and thinks about maybe not making timely payments. Many years ago, 20% of the purchase price of the property was considered a normal down payment, the acceptance of government backed loans and mortgage insurance companies has reduced this down payment requirement to as little as 3% of the property purchase price required as down payment, or in some very good credit cases even 0% down. We’ll discuss this more later down this page, but for now, remember that when the loan was originated, the lender felt the loan amount was somewhere between 3 and 10 percent below the property value at that point in time.

Who Owns the Loan?

With the exception of smaller regional lenders, most lenders in today’s environment do not originate and service their own loans. Most loans today are originated by one lender, using guidelines provided by the institution to whom they would like to sell the loan. Then the loan (note) is sold to that secondary lender who will continue to service the loan, meaning collecting monthly payments, maintaining any escrow accounts for property insurance and property taxes, and interface with the borrower regarding the borrower account. It is very common with home loans for the home loan to be originated with one lender, the note serviced by a different lender, and ownership of the note held by a third lender or financial institution. While the servicing lender is, for most intents and purposes, the foreclosing lender, their procedures for completing the foreclosure and handling the property post-foreclosure will be dictated by the institution owning the note.

Mortgage Insurance and Loan Guarantees

Lenders are often guaranteed against loss on their notes by Housing and Urban Development (HUD), the Veterans Administration (VA), or one of many mortgage insurance companies. When a new home loan is originated with less than 20% down payment, the originating lender qualifies the borrower using the requirements of the guaranteeing agency. The loan isn’t funded using any money from these agencies, they are acting in a capacity more like insurance, where they collect a fee and only get directly involved when something bad happens, which in this case would be a default in payments, and a possible foreclosure. If a default in payments occurrs, the guaranteeing agency will require the lender to follow certain steps to try to make the loan performing once again. If those attempts are unsuccessful, then the guaranteeing agency will have requirements for the lender to follow through the foreclosure process. Post-foreclosure, the guaranteeing agency will reimburse the lender for either all, or most of the loss incurred on the foreclosed loan.

For more information on current financing for your short sale or foreclosure, please visit our website: HowToBuyABankHome.com

Courtest:AllForeclosure

MERIT Realty Reports FHLMC (FreddieMac) Has More Than 350 Foreclosed Homes Available In Las Vegas & Henderson

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.

• You’ll have a place that is yours!
  Homeownership provides shelter and security for you and your family. You can pass your home down to your children, and their children, creating security for generations to come.
• You may have some tax benefits with homeownership. 
  Homeownership can reduce the federal income taxes you pay. You can deduct the interest on your home mortgage and property taxes you pay on your home on the tax returns you file each year. These tax savings may offset a portion of the cost of owning your home. While tax savings can reduce the cost of homeownership over time, you still need to make sure you can afford the monthly mortgage payments.
• Your monthly payments will remain stable if you choose a fixed-rate mortgage!  
  If you choose a mortgage with a fixed-interest rate (one that stays the same for the life of the loan, say 30 years), you’ll pay the same mortgage payment each month for the entire 30 years of the loan (but remember if your taxes go up, your escrow will go up – increasing your monthly payment).
• You’ll contribute to your nest egg!
  Owning a home can be a way to build long-term financial security and independence.

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

MERIT Realty Reports FNMA Has Over 1,500 Foreclosed Properties In Las Vegas & Henderson

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

MERIT Realty Reports Wells Fargo Has 216 Foreclosed Homes In Las Vegas

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:

• Put it in writing. All negotiations should be handled in writing—not verbally—to ensure that there is a clear understanding between the parties. If you must negotiate verbally, at least follow up in writi
• Have your preapproval from your lender to give you maximum leverage. Sellers require offers from buyers whose financing is already secured.
• Be prepared to submit an earnest money deposit (also called a “good faith” deposit) to show your commitment to the transaction. This deposit, the amount of which varies by locality, will go into an escrow account until the transaction is complete.

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:

• The home address and legal description of the property.
• The sales price and the amount of the loan, down payment, and deposit.
• The names of both parties and their respective agents, brokers, or attorneys.
• Any applicable time limits. These may apply to the buyer’s acquisition of financing, the seller’s response to the offer, the closing, or the transition of occupancy.
• Any conditions or contingencies that must be met in order to complete the transaction. For example, the contract may be contingent on the buyer’s ability to obtain financing, the home being appraised at a certain value, the results of a home inspection, or the sale of the buyer’s current home.

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:

• Review your loan commitment with your lender to make sure you understand all the requirements.
• Set the closing time and date based on your sales contract and the loan commitment expiration.
• Confirm that a survey of your property has been ordered. Check with your closing agent or attorney.
• Make preparations to move (notify your landlord, complete change of address forms, arrange for utilities to be disconnected at your current address and made available at your new home, and plan your actual move).
• Conduct a final walk-through inspection of your home-to-be.
• Make sure you’ve satisfied all the requirements of your agreement with the seller.
• Get a certified or cashiers check from the bank for your closing costs. Cash or personal checks are generally not accepted.

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

Six Things MERIT Realty Wants You to Know About Mortgage Forgiveness

There is tax relief for struggling homeowners.  If your mortgage debt is partly or entirely forgiven at any time during 2007 through 2012, you may be able to claim special tax relief on your federal income tax return for that year.

1. Normally, debt forgiveness results in taxable income. However, under the Mortgage Forgiveness Debt Relief Act of 2007, you may be able to exclude from tax up to $2 million of debt forgiven on your principal residence. The limit is $1 million for a married person filing a separate return.
 
2. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, may qualify for this relief.

3. The debt must have been used to buy, build or substantially improve your principal residence and must have been secured by that residence. Debt used to refinance qualifying debt is also eligible for the exclusion, but only up to the amount of the old mortgage principal, just before the refinancing.

4. Debt forgiven on second homes, rental property, business property, credit cards or car loans does not qualify for the tax-relief provision. In some cases, other kinds of tax relief – based on insolvency, for example – may be available.

5. If your debt is reduced or eliminated you should receive a Form 1099-C, Cancellation of Debt, from your lender. By law, this form must show the amount of debt forgiven and the fair market value of any property given up through foreclosure.

6. Taxpayers who qualify claim the special exclusion by filling out Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness, and attaching it to their federal income tax return for the year.

For more information about the Mortgage Forgiveness Debt Relief Act of 2007, visit the IRS Web site at IRS.gov. A good resource is IRS Publication 4681, Canceled Debts, Foreclosures, Repossessions and Abandonments. This publication and Form 982 can be downloaded from IRS.gov or HowToBuyABankHome.com

Tips For Buying Your First Home In Henderson – Short Sale Or Foreclosure

For a first time home buyer, the process can get quite overwhelming, giving you the feeling that the financial decisions are rapidly spinning out of control.  When it comes to real estate, most people don’t have a lot of experience or know a lot about it.  In all actuality, buying a home is actually a simple process.  All you need to do is understand the basics, which will go a long way in helping you buy your very first home. 

The first thing you should know is to avoid pre payment penalties at all costs.  What this means, is that if you buy the home then later want to sell it before the balance of your mortgage is due, you’ll have to pay a penalty.  You can find a variety of great loans that don’t include these types of penalties.  If you find a loan that does include pre payment penalties, you should immediately turn it down and look for another loan. 

You should also be on the lookout for good ARM’s.  If you have a good ARM, then your interest rate and monthly payment will adjust at the exact same time.  This will make sure that your interest doesn’t affect your monthly payment.  If your interest rate does affect your payment, then you will notice the unpaid interest reflecting the overall amount of your loan balance. 

You’ll also want to get pre approved for your house as well.  This lets the seller know that you are serious about buying, and will normally work in your favor to give an edge – which is especially handy if there are several others interested in purchasing the home.  Getting pre approved will also save you a lot of time as well.  If you can’t get approved for a loan, you shouldn’t waste your time inspecting it, trying to get a good interest rate, or negotiating with the seller for your ideal price. 

Before you purchase a home, you should always be aware of how much you can afford.  Before you attempt to purchase a home, you should always go over your budget and figure out how much money you can spend on a mortgage payment.  If you manage your money smart and know your finances, this shouldn’t take you hardly any time at all.  On the other hand, if you don’t know your finances, this will take you a long time indeed. 

If you’ve already purchase your first home, you should always avoid taking any type of home equity loan.  These loans can be very tempting when you get in an emergency and need cash, although most home equity loans add up to more than the value of your home.  You should never, under any circumstances take a home equity loan, as there are many other ways that you can clear up your personal problems without having to jeopardize your home. 

Keep in mind that the above are just a few basic tips and that there are many other things you’ll need to know before you buy your very first house.  You’ll need to be familiar with private mortgage insurance, special loan programs, fixed rate and adjustable rate mortgage, and several other things.  Buying a home is an easy process, once you know a bit about it.  If you familiarize yourself with buying a home and learn all that you can about what is involved, you’ll find the home buying process to be easier than you ever thought possible.

For more information on buying your first home and to learn of all the first time home buyer mortgage programs, please visit our website: HowToBuyABankHome.com

Knowing When You’re Ready To Buy A Henderson Short Sale or Foreclosure

All across the United States, millions of people looking to a buy home – either now or in the future.  Over the last few years, lower interest rates have come along, making it more affordable than ever to buy a home.  When most people stop and give it some thought - buying a home makes a lot more sense than renting a home or an apartment. 

In order to buy a house, you’ll need to start saving your money and have enough for the closing costs and a down payment.  Your down payment will normally need to be around 3.5% of the price or the value of the property – whichever is lower, under FHA lending guidelines.  To be on the safe side, you should always try to have 20% to put down.  If you aren’t able to put 20% down, you’ll need to buy some private mortgage insurance, which will cost you more in terms of your monthly payment. 

In most cases, the closing costs will run you around 3% of the property price.  Before you purchase the home, you should always get an appraisal.  It won’t be the exact price, although it will be really close.  You should always plan to save up a bit more money than you need, just to be on the safe side.  It’s always best to have more than enough than not enough. 

You’ll know you’re ready to buy a home when you know exactly how much you can afford, and you’re willing to stick with your plan.  When you buy a home and get your monthly mortgage payment, it shouldn’t be any more than 25 – 33% of your total monthly income.  Although there are lenders out there who will say that you can afford to pay more, you should never let them talk you into doing so – but stick to your budget instead.

Keep in mind that there is always more money involved with a home other than the mortgage payment.  You also have to pay for utilities, homeowners insurance, property taxes, and maintenance.  Owning and caring for a home requires a lot of responsibility.  If you’ve never owned a home before, it can take a bit of time to get used to. 

Before you fill out any applications, you should always look over your credit report with your lender and check for any errors.  Although you may think you don’t, you can easily get an error on your credit report and not even realize it.  If you have an error on your credit report, it can cost you a lot of money in interest rates.  An error will decrease your credit score, which will put you in a higher interest bracket and ultimately cost you a lot more money in the end.  

If you check your credit report early enough, you may leave yourself enough time to fix any problems and get your credit back on track.  Rebuilding credit can take time though, sometimes even years.  You should always plan ahead – and give yourself plenty of time to fix your credit. 

Buying a home will require a bit of commitment on your behalf.  You should always strive to get the best possible deals, which means knowing your credit and where you stand.  This way, you can get the best interest rates.  

For more information on buying a Henderson short sale or foreclosure, please visit our website: HowToByABankHome.com

MERIT Realty Suggests Using FHA To Finance Your Henderson Short Sale Or Foreclosed Property

FHA home loans make the process of buying a Henderson short sale or foreclosed property more affordable than ever.  As you may already know, these types of loans give you many opportunities that wouldn’t be possible without them.  When you buy a home, you should understand as much as you can about the process, as well as the questions you will be answering.  This way, you’ll be familiar with how things work and you’ll find the entire process to go much smoother. 

When you look towards a home purchase loan, you’ll need to fully understand the interest rates.  They are never the same and will vary among the different financial institutions, as well as from time to time.  In many cases, home loans can change on a frequent basis, with little to no notice.  When you buy a home, it is very important that you keep up with the economy.  Any change in interest rates for a home loan can either increase or decrease the amount you pay back. 

When getting a home loan, you’ll also need to understand the terms and the length of the loan.  Almost all financial institutions and lenders have a variety of different plans or periods for you to choose from.  If you choose a longer period, in most cases your interest rate will drop.  You can find this out yourself by using a mortgage calculator.  This way, you’ll know how much your mortgage payment will be before you decide to further pursue the loan. 

As you probably already know, your ability to pay the loan back is very important.  Some lenders require that you keep your loan full term, while others may provide you with the option to pay it off any time you wish.  Home loans that give you the option to pay it off early will normally save you quite a bit of money in the end.  If you are able to pay your loan off several years early, you’ll save a lot of money in the long run. 

Even though the early payoff option is great to have, it can also come back to haunt you if you end up defaulting on the home loan.  Or, if you decide to sell your home in the future, the early payoff can haunt you as well.  For those very reasons MERIT Realty recommends to always consult with a specialist before you commit to any type of home loan. 

For the potential home buyer, home loans offer several different opportunities.  Before you rush out and get a home loan, you should always know what you are agreeing to.  You should also look into the company you are thinking of getting the loan from as well, so that you can better prepare yourself when you go through their process of getting your loan. 

To locate your next short sale or foreclosed property in Henderson, please visit our website. HowToBuyABankHome.com

Investing In Ugly Henderson Short Sales And Foreclosures Using MERIT Realty

When you are first starting out with investing in short sales and foreclosures, you should always look for ugly or bad houses that need a lot of work.  These properties are much cheaper to purchase, although they will take some work to improve.  You should start out by looking for properties that need some work, such as clean up, painting, and in some cases new carpet.  You don’t want to buy something too run down, as it could cost a fortune to repair. 

If you think of yourself as a handyman and feel that you can do the repairs yourself, you can save a lot of money.  On the other hand, if you need to hire someone, you should always make sure that the individual or company that you hire is qualified to do the repairs. If you aren’t comfortable with doing any of the repairs, you should inquire about a subcontractor or company that will do it for a reasonable price, or perhaps a share of the money once you have resold the property. 

If the property you are thinking to purchase and resell has any type of structural problems, you should always get an estimate from a reliable contractor before you make the purchase.  If you decide to stay in the business, you’ll learn a lot more over the years, although you should always hire a contractor when you first start out.  Once you get all of the estimates together, you can make that final decision on how much of an offer you want to put on the property. 

After you have a team together and successfully renovated and resold several properties, you’ll begin to feel quite a bit more confident with buying homes that need repairs.  All it takes is time and practice – and you’ll be buying properties that the average investor wouldn’t think twice about.  This can be a huge advantage when you are looking for properties to buy and resell, as there will be less competition to worry about.  You’ll also be able to get a lower price when buying the property, simply because you can use the cost of the repairs to your advantage. 

Once you are able to do repairs on properties, including structural problems, you’ll have a huge advantage in the market.  You’ll be able to buy virtually any property, including those that other investors choose to ignore.  Doing so can be very profitable for you, especially if it is in a well known and well desired neighborhood.  After you have done the repairs, you can resell it for a much higher price than you paid. 

When you start looking for property that you can repair and resale, you should always take your time and buy the right ones.  You won’t have the money, time, experience, or support to buy the bigger ones at first, which means you won’t have any room for mistakes.  Once you have purchased and resold a few smaller properties, you’ll eventually be able to work your way up to the bigger ones – which is where the big profits will come into play. 

Always keep in mind that when you first start out, you’ll need to take things slow.  You can expect profits to come overnight, as it will take you some time to learn.  Once you have been at it a few years and have several properties to your credit, you’ll be ready to tackle anything.  At that point – you’ll make a lot of money in a career that is truly exciting. 

To find free access to all short sale and foreclosure properties in Henderson, please visit our website. HowToBuyABankHome.com

MERIT Realty Asks: Has Television Changed The Face Of Investing In Henderson Short Sales And Foreclosures?

If you take a look through the television stations on almost any given day there is a television show somewhere that features home improvement, real estate investing, or some sort of combination of the two. From shows that teach people how to sell properties that have lack luster reviews to shows that teach viewers that it is possible to purchase, repair, and re-sell a short sale or foreclosure in a matter of weeks for astronomical profits, there are shows that appeal to the entrepreneurial wannabes in audiences around the globe. 

These shows have made and lost fortunes a few times over by convincing viewers that they too can do the wondrous things seen on television. The truth is that many viewers are capable of doing these things but television never really shows how hard the work actually may be. The television cameras do not always show the blood, sweat, and tears that go into making these projects successful and rarely mention the countless complete and total failures that occur along the way. 

The cameras are also not to keen for showing up at 4 am and rolling well after midnight when the work for the day is finished. It doesn’t catch the heart attacks and nightmares as credit cards are going dangerously close to being completely maxed out while dreams of quick riches fade right in front of investor’s eyes. 

This does not mean that every project is doomed to failure only that things are not always as rosey as they may appear to be on the television shows. Flipping short sales and foreclsoures may seem to be a bit glamorous and a lot hands on. The problem with that is that too few people really realize how much work goes into the hands on part of the program. This is not easy money no matter how much the television cameras would like to convince you otherwise. 

It is very possible to turn a substantial profit in a relatively short amount of time if you keep your cool, use your head, and buy and sell in the right conditions. The problem is that so many people do not consider the big picture and find themselves in over their heads and out of money before the project is anywhere near completion. 

One thing that television has definitely done for this line of work is make competition for Henderson short sales and foreclosures a little fiercer. The early bird in this business gets the worm and while the cheapest property isn’t always the best candidate the less competition you have driving the prices up, the better in this situation. The goal is to buy low and sell high. Most people do not have a terrible amount of competition, as of yet, on the selling high portion of the program. The real trouble at this point in time lies in the buying low portion as there are many more would be real estate investors that are interested in buying the inexpensive properties than there are that will actually see the projects through from beginning to end. 

So yes, television has greatly changed the way people invest in Henderson real estate. Whether this is truly good or bad for the overall Henderson real estate market remains to be seen. In light of the recent down turns in real estate it is to be expected that some of the popularity may diminish. The sad thing is that this is still one of, if not the best ways to make a large sum of money fairly quickly that is legal in the world today. Fortunes can be made and lost in real estate; the trick is always in placing your bets on the right property at the right time. For those who are willing to take the risks associated with investing in short sales and foreclosures in today’s market and those that are willing to wait for a slight upturn in the market the profit potential is phenomenal. 

To learn more about available Henderson short sales and foreclosures, please visit our website. HowToBuyABankHome.com