Realty Trac reported that foreclosures of million dollar homes has been increasing since the end of 2009. In February 2010 there were 4,159 high end homes in foreclosure. That works out to be a 121% increase from what they were in 2009.
When this whole market started declining I was talking to a very close associate on my team and we agreed mid price and high end were the next to fall, and that prediction came true. This decline comes on the heels of stabilization in low and moderate homes.
Owners of high end homes were just better able to ward off foreclosure by their cash reserves and charge cards and credit, where the lower end exhausted their savings.
Core logic's data shows that the 90 day delinquency of high end homes hit 13.3 % in February 2010. However, we are finding that banks are more willing to negotiate the loan or accept short sales because this is a large loan to have on their books. The cost of holding a high end can be very expensive.
With prices declining the way that they are, the days of equity in your home is over, and alot of high end home owners have lost the equity that they have had in their homes and thus their reserves. There of course the "strategic defaulters" who have stopped making mortgage payments because of this decline in prices.
Foreclosure can hit any neighborhood, as we are finding out, any price , any one. Please visit our website nevadainvestmenthomes.com for more information on foreclosures and short sale and contact me Pat Yoest for all your real estate needs in Las Vegas.
Saturday, September 11, 2010
Wednesday, September 8, 2010
Always Check Title On A Short Sale
When buying or selling a short sale it is important to check title to see if there are any junior liens that could come up. There could simple things that pop up such as garbage removal, sanitation or sewage fees, mechanic liens, or HOA fees. Property taxes must be paid , and they are senior to the mortgage. That means that they must be paid first. HOA fees are also superior to first mortgage and they must also be paid.
You could check title on your own by going to the courthouse and looking up the liens. This is the long way to do it and should only be used if you don't have a title company, or attorney who will do it for you. In Nevada, the title companies will do a short and check title before an agent lists the home. Ticor Title
All liens must be satisfied in some shape or form. So both buyer and seller beware this can kill your deal. As a buyer you need to be aware or you may get caught with extra charges, and seller this can happen to you too.
Short sales are a complicated process. Always be sure you have the correct agent. Why not contact us?
pyoestc21@aol.com, http://www.nevadainvestmenthomes/ for more home buying and selling info. Why not make us your one stop shopping center?
You could check title on your own by going to the courthouse and looking up the liens. This is the long way to do it and should only be used if you don't have a title company, or attorney who will do it for you. In Nevada, the title companies will do a short and check title before an agent lists the home. Ticor Title
All liens must be satisfied in some shape or form. So both buyer and seller beware this can kill your deal. As a buyer you need to be aware or you may get caught with extra charges, and seller this can happen to you too.
Short sales are a complicated process. Always be sure you have the correct agent. Why not contact us?
pyoestc21@aol.com, http://www.nevadainvestmenthomes/ for more home buying and selling info. Why not make us your one stop shopping center?
Monday, September 6, 2010
Real Estate Downturn Continues
Prices are high in most places, even though they have continued to spiral downward. Income has failed to keep pace with housing costs. Home prices are dangerously high compared to rental prices, and therefore more are renting instead of buying. Anyone who bought a home last year is feeling the pinch of the declining market as the price of their home has gone down. Home prices will continue to fall for a long period of time.
Banks, although many have stricter qualifications than ever, are still lending 6 times the client's income, with only a bare minimum down payment. Sellers in some areas are still asking a ton of money for properties.
Moderately priced homes have for the most part come down to affordability, but now look for the upper price range homes to lose ground. More of the higher income bracket have watched their home prices slide also. Look for more million dollar homes to become available, as more are strategically defaulting because of this.
Payments on a home come to about 9% of the purchase price versus 3% to rent. The cost of a moderately priced home now equals out to the cost of renting however the difference is the cost of maintaining it. The owner usually pays for repairs on a rental. The cost to buy an upper priced home vs rental is different. The cost to rent it far lower than buying it.
The upper priced market will continue to fall until it levels out and stabalizes and reaches affordability just as the moderately priced homes have done. There are bargains to be found in the moderately priced sector now.
If all you can do is rent now, take heart in the fact that you can save money in the long run because you are not loosing money on declining house prices.
If you are an investor, remember the bottom is when you can rent a home out and cash flow. Try for some wholesale deals however, you can make out by buying in bulk. Ask me how.
http://www.nevadainvestmenthomes/ for real estate info.
Banks, although many have stricter qualifications than ever, are still lending 6 times the client's income, with only a bare minimum down payment. Sellers in some areas are still asking a ton of money for properties.
Moderately priced homes have for the most part come down to affordability, but now look for the upper price range homes to lose ground. More of the higher income bracket have watched their home prices slide also. Look for more million dollar homes to become available, as more are strategically defaulting because of this.
Payments on a home come to about 9% of the purchase price versus 3% to rent. The cost of a moderately priced home now equals out to the cost of renting however the difference is the cost of maintaining it. The owner usually pays for repairs on a rental. The cost to buy an upper priced home vs rental is different. The cost to rent it far lower than buying it.
The upper priced market will continue to fall until it levels out and stabalizes and reaches affordability just as the moderately priced homes have done. There are bargains to be found in the moderately priced sector now.
If all you can do is rent now, take heart in the fact that you can save money in the long run because you are not loosing money on declining house prices.
If you are an investor, remember the bottom is when you can rent a home out and cash flow. Try for some wholesale deals however, you can make out by buying in bulk. Ask me how.
http://www.nevadainvestmenthomes/ for real estate info.
Friday, September 3, 2010
Before You Buy A Short Sale
You have found the perfect home, and you are so excited. Before you rush out to put earnest money on it, there are many things you should know.
Just because the property is listed for sale as a short sale it doesn't mean it is a short sale. The bank still has to approve the sale because it is for less than the amount that is owed. This property may not sell for the listed price, the bank could counter higher and in many instances they do. In some real estate markets, fewer than 10 short sales will actually close.
Before you make a bid on the house, have your agent check out these things. Check out comparable sales and listings in the subdivision. Because of the length of time it takes to close a short sale, 2-5 months, the sales that are pending right now will be the closing comparables when your closes. In order to get your offer accepted, it will need to be around market value.
Have your agent check to see how many offers are on the property. If it was listed at a low, low introductory price, it may attract multiple offers. If you are not willing to pay above list, don't bother to make the offer. The more offers a property has, the higher the price will be.
Have your agent research what is owed on the home and the number of loans on it. Short Sales that have more than one loan are often more difficult and take more time. Second and third loans have to settle for peanuts because they are junior liens, and most of the money will go to the first. If your offer is 20-30% of the amount owed, you probably won't make it to the loss mitagator's desk. The offer has to be near market value.
Find out what the listing agent's track record is. The listing agent will submit the package and negotiate with the bank. If they have no experience you are dead in the water. No one else but the listing agent talks to the bank. Some will have an outside agency do their short sales. This is sketchy at best. Find out what their closing rate is. The Pat Yoest team has an 81% close rate.
See if the listing agent has received a full package from the seller. Some sellers are slow in getting the documents to the listing agent, and some sellers are never told what documents the bank requires.
This is something that keeps coming up. There are title issues that need to be resolved such as junior liens. The seller could owe garbage removal services, taxes, or HOA fees. Before offering on the property , you should know these things so you can have your agent clarify who pays for what in the contract. In Las Vegas, our title companies can tell us what junior liens are on the properrty before we go to the listing appointment. If the listing agent can't tell you then ask the title company.
Buying a shortsale doesn't have to be a nighmare. It could be the home of your dreams. Just pay attention to the details above and be patient. A short sale is not an overnite transaction.
Our website has other articles on short sales, please feel free to browse. Please call me with
any questions you may have. I want to be your Realtor for life .
Pat Yoest
702-521-1442
pyoestc21@aol.com
Just because the property is listed for sale as a short sale it doesn't mean it is a short sale. The bank still has to approve the sale because it is for less than the amount that is owed. This property may not sell for the listed price, the bank could counter higher and in many instances they do. In some real estate markets, fewer than 10 short sales will actually close.
Before you make a bid on the house, have your agent check out these things. Check out comparable sales and listings in the subdivision. Because of the length of time it takes to close a short sale, 2-5 months, the sales that are pending right now will be the closing comparables when your closes. In order to get your offer accepted, it will need to be around market value.
Have your agent check to see how many offers are on the property. If it was listed at a low, low introductory price, it may attract multiple offers. If you are not willing to pay above list, don't bother to make the offer. The more offers a property has, the higher the price will be.
Have your agent research what is owed on the home and the number of loans on it. Short Sales that have more than one loan are often more difficult and take more time. Second and third loans have to settle for peanuts because they are junior liens, and most of the money will go to the first. If your offer is 20-30% of the amount owed, you probably won't make it to the loss mitagator's desk. The offer has to be near market value.
Find out what the listing agent's track record is. The listing agent will submit the package and negotiate with the bank. If they have no experience you are dead in the water. No one else but the listing agent talks to the bank. Some will have an outside agency do their short sales. This is sketchy at best. Find out what their closing rate is. The Pat Yoest team has an 81% close rate.
See if the listing agent has received a full package from the seller. Some sellers are slow in getting the documents to the listing agent, and some sellers are never told what documents the bank requires.
This is something that keeps coming up. There are title issues that need to be resolved such as junior liens. The seller could owe garbage removal services, taxes, or HOA fees. Before offering on the property , you should know these things so you can have your agent clarify who pays for what in the contract. In Las Vegas, our title companies can tell us what junior liens are on the properrty before we go to the listing appointment. If the listing agent can't tell you then ask the title company.
Buying a shortsale doesn't have to be a nighmare. It could be the home of your dreams. Just pay attention to the details above and be patient. A short sale is not an overnite transaction.
Our website has other articles on short sales, please feel free to browse. Please call me with
any questions you may have. I want to be your Realtor for life .
Pat Yoest
702-521-1442
pyoestc21@aol.com
Buyers! Cut Down The Processing Time On A Short Sale
Short Sales are time consuming, and very often long drawn out affairs. Sometimes they take months and months to get an answer. and when you do get an answer, it is often the one you don't want to hear. It doesn't have to be a a marathon. Just make sure the people on your team are professionals.
Check out the listing agent before you put in an offer. You need to find out what their track record is. If they are new at the short sale game, this could be a time waster. Sometimes an agent will have an outside company do the negotiations. The company doing the negotiations need to be checked out also. You need a listing agent that is on top of their game.
Be careful also to choose the right buyer's agent. They should also be experienced in selling short sales. Since the buyer's agent doesn't speak to the bank , their job is a waiting game also. But the listing agent can often do preliminary investigations that that prevent you from picking the wrong property to buy, and wasting alot of time.
Pick a home that has only one mortgage. If there is more than one lender, the lenders often cannot agree on anything let alone on what they are to receive as proceeds from a house sale. The bickering between lenders often stalls a sale, and more often causes the sale to fall apart.
When you apply for a mortgage, make your lender preapprove you. You should ask to be approved subject to only the appraisal. In a recent short sale. the client secured his own financing, told the agent he was preapproved and ready to go. To make a long story short, because he was not preapproved it took 4 times in underwriting to get approval to draw the loan docs.
Take care when chosing the lender, also. The lender in this short sale could have shortened the time it took by being on top of the loan. You can always tell when it takes a day or so to return calls.
see other short sale articles at http://www.nevadainvestmenthomes.com/
Check out the listing agent before you put in an offer. You need to find out what their track record is. If they are new at the short sale game, this could be a time waster. Sometimes an agent will have an outside company do the negotiations. The company doing the negotiations need to be checked out also. You need a listing agent that is on top of their game.
Be careful also to choose the right buyer's agent. They should also be experienced in selling short sales. Since the buyer's agent doesn't speak to the bank , their job is a waiting game also. But the listing agent can often do preliminary investigations that that prevent you from picking the wrong property to buy, and wasting alot of time.
Pick a home that has only one mortgage. If there is more than one lender, the lenders often cannot agree on anything let alone on what they are to receive as proceeds from a house sale. The bickering between lenders often stalls a sale, and more often causes the sale to fall apart.
When you apply for a mortgage, make your lender preapprove you. You should ask to be approved subject to only the appraisal. In a recent short sale. the client secured his own financing, told the agent he was preapproved and ready to go. To make a long story short, because he was not preapproved it took 4 times in underwriting to get approval to draw the loan docs.
Take care when chosing the lender, also. The lender in this short sale could have shortened the time it took by being on top of the loan. You can always tell when it takes a day or so to return calls.
see other short sale articles at http://www.nevadainvestmenthomes.com/
No Plans For Another Real Estate Tax Credit
Shaun Donovan, Secretary of Hud, was a guest on a late night show. When ask about extending the now expired tax credit , he said the housing numbers for July were worse than expected, and that they are watching very carefully But that's how things get blown out of proportion and rumors start. Two other guest on that same show said they would welcome it.
All of a sudden it was being reported that a second tax credit was in the works. Well guess what folks before you start cashing your checks, three days later Donovan said it was not high on anybody's list. He also said that the government was considering a emergency loan program to help underwater home owners. This was already done a long time ago and is known as The FHA Short Refinance.
The state that used the tax credit the most was California with 1 Billion, followed by Texas, and Florida.
Realtors in most areas report that sales have declined since the expiration of the credit.
please visit my website http://www.nevadainvestmenthomes.com/ or email me at pat.yoest@gmail.com
All of a sudden it was being reported that a second tax credit was in the works. Well guess what folks before you start cashing your checks, three days later Donovan said it was not high on anybody's list. He also said that the government was considering a emergency loan program to help underwater home owners. This was already done a long time ago and is known as The FHA Short Refinance.
The state that used the tax credit the most was California with 1 Billion, followed by Texas, and Florida.
Realtors in most areas report that sales have declined since the expiration of the credit.
please visit my website http://www.nevadainvestmenthomes.com/ or email me at pat.yoest@gmail.com
Subscribe to:
Posts (Atom)