Las Vegas Real Estate Fact and Fiction

FANNIE MAE INTENSIFIES PENALTIES FOR STRATEGIC DEFAULTERS

Dulcie@DulcieCrawford.com (Dulcie) — Fri, 02 Jul 2010 22:24:00 +0000

Seven-Year Lockout Policy for Strategic Defaulters

We would like to share this current update on recent Fannie Mae policy changes designed to encourage borrowers to work with their servicers and pursue alternatives to foreclosure. This change will affect homeowners who decides to do a “strategic default,” -- when borrowers are walking away from their homes based on the sheer fact that the property is currently worth less than what is owed, even if they are able to afford their monthly mortgage payments. This phenomenon isn’t looked upon kindly, as it unnecessarily adds to the growing number of foreclosures across the nation.

Under these changes, defaulting borrowers who walk away and had the capacity to pay or did not complete a workout alternative in good faith will be ineligible for a new Fannie Mae-backed mortgage loan for a period of seven years from the day of foreclosure.

In addition, Fannie Mae said it will take legal action to recoup the outstanding mortgage debt from borrowers who strategically default on their loans in jurisdictions that allow for deficiency judgments. In an announcement next month, the company said it will be instructing its servicers to monitor delinquent loans facing foreclosure and put forth recommendations for cases that warrant the pursuit of deficiency judgments.

“We’re taking these steps to highlight the importance of working with your servicer,” said Terence Edwards, executive vice president for credit portfolio management. “Walking away from a mortgage is bad for borrowers and bad for communities, and our approach is meant to deter the disturbing trend toward strategic defaulting.”

On the flip side, Edwards said borrowers facing hardship who make a good faith effort to resolve their situation with their servicer will preserve the option to be considered for a future Fannie Mae loan in a shorter period of time.

According to Fannie Mae, troubled borrowers who work with their servicers and provide information to help the servicer assess their situation can be considered for foreclosure alternatives, such as a loan modification, a short sale, or a deed-in-lieu of foreclosure. Fannie Mae said borrowers with extenuating circumstances who work out one of these options with their servicer could be eligible for a new mortgage loan in three years and in as little as two years depending on the circumstances.

Here is the verbiage from the FN Bulletin:

Currently, the waiting period that must elapse after a borrower experiences a
foreclosure is seven years. However, Fannie Mae allows a shorter time period –
five years – if certain additional requirements are met (e.g., minimum down
payment and credit score, and occupancy requirements).

These requirements are being modified to remove the five year option. Unless the foreclosure was the result of documented extenuating circumstances, which only requires a three-year waiting period (with additional requirements), all borrowers will now be required to meet a seven-year waiting period after a prior foreclosure to be eligible for a new mortgage loan eligible for sale to Fannie Mae."

Don't miss the section that says borrowers who have extenuating circumstances may be eligible for new loan in a shorter timeframe.

You can check out the full text of the announcement here: Fannie Mae's Selling Guide Announcement SEL-2010-05.

What Tax Records Should You Keep and How Long Should You Keep Them?

Dulcie@DulcieCrawford.com (Dulcie) — Thu, 03 Jun 2010 23:54:00 +0000

While tax preparation seems to get a little bit easier each year with the prevalence of online tax prep software, there’s still one question that leaves many Americans scratching their heads: What records should I hang onto for tax purposes and how long should I keep them?

There are a few basic records that everyone should keep, according to the IRS, including documents that provide evidence of your income and expenses. In addition, if you own a home or have investments, the IRS recommends that you hang onto related records. Here’s the breakdown:

Basic Records to Keep

Now that you know what to keep, here’s the low-down on how long to keep them (also known as the “period of limitations”):

How Long to Keep Records*

*Unless otherwise noted, the number of years you should keep records refers to the time period beginning after you filed your return. If you filed your return before the deadline, the IRS treats it as if you filed it on the deadline.

For more details about which records you should keep for tax purposes, the IRS has put together a handy publication on Recordkeeping for Individuals.

GREAT NEWS FOR SHORT SALE FRUSTRATION

Dulcie@DulcieCrawford.com (Dulcie) — Fri, 12 Feb 2010 00:47:00 +0000

On November 30, 2009, the Obama Administration released guidelines and uniform forms for its Home Affordable Foreclosure Alternatives Program (HAFA). Modified HAFA rules for loans owned or guaranteed by Fannie Mae or Freddie Mac will be issued in coming weeks. HAFA does not apply to FHA or VA loans.

HAFA, which will help homeowners who are unable to retain their home under the Home Affordable Modification Program (HAMP), provides incentives in connection with short sales and deeds-in-lieu of foreclosure. HAFA is a complex program with 43 pages of guidelines and forms. We will keep you updated in future blogs and strive to simplify the jargon to see how this program can help you.

The program:

Complements HAMP by providing a viable alternative for borrowers (the current homeowners) who are HAMP eligible but nevertheless unable to keep their home.
Uses borrower financial and hardship information already collected under HAMP.
Allows borrowers to receive pre-approved short sales terms before listing the property (including the minimum acceptable net proceeds).
Prohibits the servicers from requiring a reduction in the real estate commission agreed upon in the listing agreement (up to 6%).
Requires borrowers to be fully released from future liability for the first mortgage debt and, if the subordinate lien holder receives an incentive under HAFA, that debt as well (no cash contribution, promissory note, or deficiency judgment is allowed).
Uses a standard process, uniform documents, and timeframes/deadlines.
Provides financial incentives: $1,500 for borrower relocation assistance; $1,000 for servicers to cover administrative and processing costs; and up to a $1,000 match for investors for allowing a total of up to $3,000 in short sale proceeds to be distributed to subordinate lien holders. Requires all servicers participating in HAMP to implement HAFA in accordance with their own written policy, consistent with investor guidelines. The policy may include factors such as the severity of the potential loss, local markets, timing of pending foreclosure actions, and borrower motivation and cooperation.
Does not take effect until April 5, 2010, but servicers may implement it before then if they meet certain requirements. The program ends on December 31, 2012.

Who is eligible for HAFA?
The borrower must meet the basic eligibility criteria for HAMP:

Principal residence
First lien originated before 2009
Mortgage delinquent or default is reasonably foreseeable
Unpaid principal balance no more than $729,750 (higher limits for two- to four-unit dwellings)
Borrower’s total monthly payment exceeds 31% of gross income

What else should I know?

The deal must be “arms length.” Borrowers can’t list the property or sell it to a relative or anyone else with whom they have a close personal or business relationship.
The amount of debt forgiven might be treated as income for tax purposes. Under a law expiring at the end of 2012, however, forgiven debt will not be taxed if the amount does not exceed the debt that was used for acquisition, construction, or rehabilitation of a principal residence. Check with a tax advisor.
The servicer will report to the credit reporting agencies that the mortgage was settled for less than full payment, which may hurt credit scores.
Buyers may not reconvey the property for 90 days.

HOMEBUYER TAX CREDIT CHANGES AT A GLANCE

Dulcie@DulcieCrawford.com (Dulcie) — Fri, 12 Feb 2010 00:41:00 +0000

First-time Homebuyers and Repeat Homebuyers still have time to take advantage of the tax credit available to them. The following quick reference is from the Federal Housing Tax Credit website. We have provided more links to detailed discussions for each.

If you have questions specific to your situation, please call us at 702-285-1990 and we would be happy to provide answers.

$8,000 First-time Home Buyer Tax Credit at a Glance

The $8,000 tax credit is for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
The tax credit does not have to be repaid unless the home is sold or ceases to be used as the buyer’s principal residence within three years after the initial purchase.
The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
The tax credit applies only to homes priced at $800,000 or less.
The tax credit now applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.
For homes purchased on or after January 1, 2009 and on or before November 6, 2009, the income limits are $75,000 for single taxpayers and $150,000 for married couples filing jointly.
For homes purchased after November 6, 2009 and on or before April 30, 2010, single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.

To view Frequently Asked Questions, please click here: http://www.federalhousingtaxcredit.com/faq1.php

The $6,500 Move-Up / Repeat Home Buyer Tax Credit at a Glance

To be eligible to claim the tax credit, buyers must have owned and lived in their previous home for five consecutive years out of the last eight years.
The tax credit does not have to be repaid unless the home is sold or ceases to be used as the buyer’s principal residence within three years after the initial purchase.
The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $6,500.
The tax credit applies only to homes priced at $800,000 or less.
The credit is available for homes purchased after November 6, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, the home purchase qualifies provided it is completed by June 30, 2010.
Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.

You can find Frequently Asked Questions here: http://www.federalhousingtaxcredit.com/faq2.php

RECENT RULING MAY HELP HOMEOWENERS TRYING TO AVOID FORECLOSURE / LV HOME PRICES RISE AS SALES TAKE SEASONAL FALL

Dulcie@DulcieCrawford.com (Dulcie) — Wed, 16 Dec 2009 02:08:00 +0000

In a recent report from the Las Vegas Review Journal by reporter John G. Edwards, homeowners fighting back foreclosure may have some hope to delay the process. This ruling made by U. S. District Judge Kent Dawson “makes it harder for lenders to foreclose on home mortgages” as it challenges the electronic system of recording the ownership of residential mortgages for the mortgage banking industry.

About half of all U.S. mortgages “whose loans have been securitized, sliced and diced are now held" by Mortgage Electronic Registration Systems Inc., or MERS, according to a blog posted by securities analyst Barry Ritholtz.

According to the article, “The case, heard by a panel of federal judges in November, concerned whether Mortgage Electronic Registration Systems Inc. could foreclose on residences on behalf of lenders.”

The electronic system records the ownership of residential mortgages for the mortgage banking industry.

Dawson said the company could not foreclose on a home, because it did not provide evidence that it held the note on the residence and didn’t show that it was an agent of the lender.
The case started in bankruptcy court two years ago.

MERS officials asked bankruptcy Judge Linda Riegle for permission to start foreclosure proceedings against a property owned by Lisa Marie Chong. Bankruptcy trustee Lenard Schwartzer objected, saying the electronic system was not a “real party in interest” in the mortgage loan.

Like many mortgages, Chong’s loan had been securitized, meaning it had been pooled or packaged into a security held by investors.

Mortgage Electronic Registration Systems Inc. was unable to show that it had possession of the note. The bankruptcy judge ruled in Schwartzer’s favor. The decision was appealed to federal court.

In his decision Tuesday, Dawson said "the registration system does not lose money when borrowers fail to make payments on home mortgages." Dawson found that the Mortgage Electronic Registration must at least provide evidence that it was a representative of the mortgage loan holder, which it failed to do.

“Since MERS provided no evidence that it was the agent or nominee for the current owner of the beneficial interest in the note, it has failed to meet its burden of establishing that it is a real party in interest with standing,” Dawson said, affirming the bankruptcy court ruling.

Real estate attorney Tisha Black Chernine said the ruling is good news for struggling borrowers and homeowners in general.

“It will have a dramatic effect on lenders being able to foreclose,” she said.

Because the decision makes it more difficult to foreclose, she hopes lenders will be more willing to negotiate with homeowners struggling to meet mortgage payments by approving short sales or making other concessions.

In a short sale, a lender agrees to allow a homeowner to sell his home for less than is owed.
This is particularly helpful, because many homeowners owe far more than their homes are worth since home prices have fallen. Houses sold in short sales typically go for 30 percent more than homes sold after foreclosure, Black Chernine said.

Appraisers looking at the short sale price will use it in determining the market value. Thus, avoiding foreclosure results in higher market values for other houses, she said.
“It should help buoy home prices,” Black Chernine said.

Bill Uffelman, chief executive officer of the Nevada Bankers Association, predicted that most foreclosures will be able to proceed, because the real mortgage owners and notes will be able to be identified in most cases.

However, he said, many homeowners facing foreclosure may be able to stay in their homes longer because of the delay.

“In the end in 99.9 percent of the cases, ownership of the note will be proved,” he said.
While the decision is believed to be the first of its kind in Nevada, the Kansas Supreme Court made a similar finding in a similar case.

LV MEDIAN PRICE RISE, SALES SLOW DOWN TYPICAL OF HOLIDAY SEASON
On another front, the recent statistics released by the Greater Las Vegas Association of Realtors show that Las Vegas’ median price of homes sold in November was $140,000, about $900 higher than October. The median price was $138,000 in September.

The traditional holiday sales slowdown of homes and condos took place in November while prices edged up slightly again, according to the report.

Analysts say the increase is a further reflection that home prices have stabilized for now. Overall, home prices are down 25 percent from November 2008.

Condo prices fell 2.9 percent in November to $68,000. Prices are 25 percent below where they were in November 2008.

Demand for homes and condos tend to soften in November, December and January because of the holidays, but sales last month eclipsed November 2008.

The GLVAR reported 3,117 sales of new homes in November, a 43 percent increase over November 2008. The 726 sales of condos and town homes was 85 percent higher than November 2008.

Compared to October, however, sales of homes fell by 12 percent and sales of condos and town homes fells by 15 percent.

Despite the slowdown, GLVAR President Sue Naumann said the extension of an $8,000 tax credit for first-time homebuyers and creation of $6,500 tax credit for other buyers should spur sales in 2010.

Investors and first-time buyers continue to dominate the sales market, according to the GLVAR.

The percentage of homes purchased with cash in November was 41 percent, nearly matching October, Naumann said. Many investors rely on cash deals.

The number of sales of foreclosed upon homes continued to drop in a reflection of limited supply that’s on the market, analysts said. The GLVAR reported 61 percent of all sales in November were bank-owned properties, down from 64.5 percent in October.

FIRST TIME HOMEBUYERS’ TAX CREDIT EXTENDED THROUGH APRIL 2010; ALSO OFFERED TO CURRENT HOMEOWNERS

Dulcie@DulcieCrawford.com (Dulcie) — Sat, 31 Oct 2009 00:49:00 +0000

We have some great news for first-time homebuyers! The Senate has agreed to extend the First Time Homebuyers’ Tax Credit through April 2010. The tax credit provides up to $8,000 to first-time homebuyers but is set to expire at the end of November.

More great news: The Senators also agreed to offer a reduced credit to some repeat buyers. Current homeowners looking for a new home could qualify for a $6,500 credit if they have lived in their existing primary residence for at least five years. The home buyers’ credit would be available to individuals earning up to $125,000, or $250,000 for couples, up from $75,000 for individuals and $150,000 for couples under the current law.

The tax credits would be available to homebuyers who sign sales agreements by the end of April. They would have until the end of June to close on their new homes, according to a summary of the legislation being circulated among lawmakers.

If you’re thinking of buying, you cannot have a better timing than now. With inventory still at peak levels, and prices and mortgage rates at record lows, this is a totally win-win situation for everybody. The current scenario also bodes well for current homeowners who may be planning to downsize or get a bigger place.

The Dulcie Crawford Group is just a phone call or email away for honest and sensible real estate advice. Please call us at 702-285-1990 or email dulciecrawford@gmail.com.

FED DECISION SHAKES THINGS UP; HOW WILL THIS AFFECT YOU?

Dulcie@DulcieCrawford.com (Dulcie) — Tue, 29 Sep 2009 21:53:00 +0000

This just came in from one of our preferred lenders, Paula Clark at Wells Fargo Home Mortgage: Last week at the Fed’s regularly scheduled Federal Open Market Committee meeting, some major decisions were made that will ultimately impact mortgage rates. But just what did they decide...and what do their decisions mean for home loan rates?

The Fed said they are going to ration out the remaining commitment of Mortgage Backed Security purchases through the first quarter of 2010. There will be no additional buying, but instead, a longer weaning off of the program. There was some speculation about the Fed increasing the amount of buying above the $1.25T committed to, and last week's statement is the Fed's nice way of saying "no." They will not be buying more in quantity, but what they will do is attempt to provide a smoother transition to normal market conditions.

It is a given that once the Fed ceases its purchases, that interest rates will climb significantly higher...most likely back above the 6% area. So instead of a hard transition with a large bump in rates, the Fed is attempting to allow rates to gradually rise. This means that waiting to purchase or refinance will very likely mean a higher interest rate.

Their decision also means that the Fed's remaining purchases will all be lower in quantity, as the remaining allotment for purchases will be spread over a longer period of time - and additionally, will not necessarily be spread out as evenly as their past purchases - which could lead to more volatility for rates in the near term.

In other news, Existing Home Sales and New Home Sales were reported slightly less than expected, but both reports continue to show signs of an improving housing market. The inventory of unsold existing homes fell to its lowest inventory level since April 2007, while the inventory of unsold new homes dropped to its lowest level since January 2007. While some of the decline in new home inventory may be due to builders constructing fewer homes - these reports indicate that the housing market is indeed showing signs of life.

Remember, with home loan rates still low - but slated to increase with the Fed's recent decision - as well as a juicy tax credit for First Time Home Buyers that is going to expire on November 30th, it makes sense to get off the fence if you've been considering a purchase or refinance. For sensible home advise, you can contact Paula Clark directly at tel. (702) 868-3920, cell (702) 277-3554, or email her at paula.L.clark@wellsfargo.com.

65 DAYS REMAINING FOR THE $8,000 FIRST TIME HOMEBUYER'S TAX CREDIT

Dulcie@DulcieCrawford.com (Dulcie) — Sat, 26 Sep 2009 21:56:00 +0000

Time is fast running out for the $8,000 First Time Homebuyer's Tax Credit, which expires on November 30, 2009. It has NOT been extended as of today. You must close escrow by this date to be eligible for the tax credit. Given today’s market conditions, you should allow 30- 45 days to close escrow. This means you want to be in contract by October 15, 2009.

That’s only 20 days to find a house.

Another positive factor to consider buying now is the very affordable interest rates. See below for the most up-to-date mortgage rates, courtesy of one our preferred lenders Aaron Gordon from Bank of America Home Loans. Aaron is reminding those who are seriously considering buying a house that the conditions are in your favor. Interest rates are steady, and rates remain at a three-month low. The Fed has slowed the purchase of mortgages amid signs of an improving economy. Fifteen-year mortgages are at their lowest since 1991.

Here’s a round-up of today’s rates (subject to change until locked):

4.875% (APR 5.129) FOR A 30 YR FIXED CONVENTIONAL LOAN (OWNER OCCUPIED OR SECOND HOME) with 1.125 points, NO ORIGINATION FEE!

4.250% (APR 4.626) FOR A 15 YR FIXED CONVENTIONAL LOAN (OWNER OCCUPIED OR SECOND HOME) with 0.750 points, NO ORIGINATION FEE!

4.875% (APR 5.139) FOR A 30 YR FHA / VA LOAN, WITH 1.250 POINTS, NO ORIGINATION FEE!

4.250% (APR 4.682) FOR A 15 YR FHA / VA LOAN, WITH 1.125 POINTS, NO ORIGINATION FEE!

5.500% (APR 5.763) ON A 30 YR JUMBO LOAN OVER $417,000 with 1.125 POINTS, NO ORIGINATION FEE!

5.000% (APR 5.244 ) ON A 5 YR JUMBO ARM OVER $417,000 with 1.000 POINT, NO ORIGINATION FEE!

5.875% (APR 6.133) ON A 30 YR INVESTOR (NON-OWNER OCCUPIED) LOAN UNDER $417,000 WITH 20% DOWN with 1.000 POINTS, NO ORIGINATION FEE (720 mid score)!

5.375% (APR 5.603 ) ON A 30 YR INVESTOR LOAN (NON-OWNER OCCUPIED) UNDER $417,000 WITH 25% DOWN with 0.750 POINTS , NO ORIGINATION FEE (720 mid score)!

NO ORIGINATION FEE ON ANY OF THE LOANS ABOVE. NO PROCESSING FEE. NO UNDERWRITING FEE. NO ADMIN FEE. You can contact Aaron at tel. 702.283.2333, fax 1.866.905.7922, or email at aaron.gordon@bankofamerica.com.

These rates assume your credit history is in good standing. This is not a credit decision or a commitment to lend; credit is subject to approval. The actual terms of your loan will vary depending on factors such as your credit history when you apply. Until you lock your rate, rates and terms are subject to change without notice. Additional programs are available.

Unless otherwise noted, these rates are based on an Owner-occupied residency in Nevada.

For adjustable-rate mortgages, rates are subject to increase after the initial fixed-rate period. A 30-year loan term applies to adjustable-rate mortgages.

Mortgage insurance may be needed, which could increase the monthly payment and APR.

We hope you find the above information valuable. We at The Dulcie Crawford Group make every effort to be on top of our game, so we can serve you the best way possible. If you have any questions or need sound advice – whether you’re thinking of selling your home or buying one – please call us at 702.285.1990.

TAKE ADVANTAGE OF RECORD-LOW INTEREST RATES BEFORE IT GOES UP

Dulcie@DulcieCrawford.com (Dulcie) — Sat, 19 Sep 2009 21:46:00 +0000

One of preferred lenders, Paula Clark at Wells Fargo Home Mortgage, is reminding us that mortgage rates are still very affordable but may soon go up. Here’s a snippet of her advice to homebuyers:

“Rates are at a low point right now and Wells Fargo thinks that we have a small window of opportunity before it goes higher. The economy is showing signs of improvement and the Fed is running at the end of its buying program. We think that rates could soon go up and go up quickly. If you have an offer accepted, are pending bank acceptance on a short-sale, or have borrowers that are floating on their interest rate, locking the rate is the best strategy per America's largest home lender.”

With the $8,000 First-Time Homebuyers Tax Credit ending by December 1st (we hope Congress extends the program) the highly reasonable rates, and the abundance of property inventory, home ownership is within reach now more than ever.

Wells Fargo offers a free 60-day lock in- which is more than enough to get the hardest loan approved and closed. Paula has personally averaged under 30-days from application to buyer signing docs at escrow. You can contact Paula Clark at 702-868-3920 or 702-277-3554. Please tell her The Dulcie Crawford Group referred you! We only work with the most reliable in the industry, and recommend those whom we can work with ourselves.

We hope you find the above information valuable in your home search. We at The Dulcie Crawford Group make every effort to be on top of our game, so we can serve you the best way possible. If you have any questions or need sound advice, please call us at 702.285.1990.

95 DAYS LEFT FOR THE $8,000 FIRST TIME HOMEBUYER'S TAX CREDIT

Dulcie@DulcieCrawford.com (Dulcie) — Mon, 31 Aug 2009 22:00:00 +0000

The clock is ticking for first time home buyers to take advantage of the $8,000 tax credit. The tax credit expires on November 30, 2009, if not extended. The American Recovery and Reinvestment Act of 2009 authorizes a tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009. If you do not close escrow by this date, you will be ineligible for the $8,000 tax credit. At the current market, you should allow 30- 45 days to close escrow today. This means you want to be in contract by October 15, 2009.

That’s 49 days to find a house. A daunting task? Probably. But if you have a great team, i.e. a highly experienced Realtor and lender, working with you, the process shouldn’t be that difficult. Easier said than done you might say, but it can be done.

More information on the tax credit can be found here:
http://www.federalhousingtaxcredit.com/2009/faq.php

CLOSING DATE EXPECTATIONS WHEN BUYING BANK-OWNED PROPERTIES

Most contracts today call for 30 to 45 day closings. Most contracts also call for late fees, sometimes as high as $150/day or more, if you don't close on time.

There were new laws and guidelines enacted concerning mortgages in the last few months that have changed things.

In combination with the time-consuming challenges some buyers faced when buying bank-owned properties today, it's important to consider the potential pitfalls when deciding to agree to a closing date and the late fees, and anticipating what they could possibly cost.

First is the appraisal. Two of the biggest challenges you can face on the appraisal are value issues and repairs.

Quite often, on bank-owned property transactions, we see that the actual appraised value of the home comes in less than the agreed-to sales price.

When that happens you have four options:

seller lowers price
buyer pays difference
seller and buyer split difference in some manner
cancel (ask your agent if you have this option)

Many buyers choose the first option. This means going back to the bank for their response. That response can take sometime, anywhere from a few days to a week or more.

If the home is in need of repairs, those take time too. Allow anywhere from a few days to a few weeks, depending on the scope of the repairs.

Appraisals take a little longer to get today. The new Regulation Z federal laws that were enacted in late July made it so lenders cannot collect fees, like appraisal money, from a borrower, and therefore cannot order the appraisal, for a minimum of three business days from the date of application or the date the lender sends the disclosure package.

So, this means the appraisal is ordered about 3-4 days after application date. Appraisals can take between 5 -10 business days today so you may be looking at 8 -14 business days before you know of the value or repair challenges.

Another time-consuming factor when buying a bank-owned home is getting the payoff demand from the homeowner's association.

Here’s a typical scenario: The seller stopped making his payments and went into foreclosure. His bank took back the home. You bought from the bank. The seller owes his homeowner's association (HOA) money that he didn't pay when he missed his payments. With penalties and fines, this number could be in the $10,000's.

Your escrow company will order this HOA payoff demand. However, with the high number of foreclosures today and the amount of payoff requests on the HOA, these payoff demands can take weeks, or sometimes even months to get.

Finally, when buying a bank-owned home, you need the seller (the bank) to sign off on the closing statement. Because you are dealing with large banks, this can sometimes take a few days or even a week or more.

And none of this addresses any potential challenges with your actual loan.

Hopefully, none of these adversely affect your transaction. However, its important to understand the potential challenges and timeframes you face when buying a bank-owned home today, especially when negotiating closing dates and late fees.

RATE UPDATE:

INTEREST RATES ARE UP LAST WEEK. Rates approached a 50 year low, once again, and then bounced up slightly.

Courtesy of one of our preferred lenders, Aaron Gordon at Bank of America Home Loans, plan on the following rates:

5.000 % (APR 5.344) FOR A 30 YR FIXED CONVENTIONAL LOAN (OWNER OCCUPIED OR SECOND HOME) with 1.250 points, NO ORIGINATION FEE!

5.000 % (APR 5.290) FOR A 30 YR FHA / VA LOAN, WITH .625 POINTS, NO ORIGINATION FEE!

5.625 % (APR 5.960) ON A 30 YR JUMBO LOAN OVER $417,000 with 1.000 POINTS, NO ORIGINATION FEE!

5.125 % (APR 5.450) ON A 5 YR JUMBO ARM OVER $417,000 with 1.000 POINTS, NO ORIGINATION FEE!

6.125 % (APR 6.470) ON A 30 YR INVESTOR (NON-OWNER OCCUPIED) LOAN UNDER $417,000 WITH 20% DOWN with 1.000 POINT, NO ORIGINATION FEE (720 mid score)!

5.500 % (APR 5.844) ON A 30 YR INVESTOR LOAN (NON-OWNER OCCUPIED) UNDER $417,000 WITH 25% DOWN with 1.125 POINT, NO ORIGINATION FEE (720 mid score)!

NO ORIGINATION FEE ON ANY OF THE LOANS ABOVE. NO PROCESSING FEE. NO UNDERWRITING FEE. NO ADMIN FEE. Rates subject to change until locked.

QUESTION OF THE WEEK:

"My lender asked me for a copy of my tax returns and W2's. I have no idea where to find them. What can I do?"

You can call the IRS at 1-800-829-1040. Option 1, then option 9, then option 1, then option 2. You will be speaking with a live person.

Tell the agent you want a complete transcript including W2's for whichever year you need. They will usually fax it to you within one day for free.

We hope you find the above information valuable in your home search. We at The Dulcie Crawford Group make every effort to be on top of our game, so we can serve you the best way possible. If you have any questions or need sound advice, please call us at 702.285.1990.

BUYER'S GUIDE TO BUYING A BANK-OWNED OR FORECLOSURE PROPERTY

Dulcie@DulcieCrawford.com (Dulcie) — Wed, 22 Jul 2009 22:58:00 +0000

In today's market, nearly four out of every five homes sold are bank-owned foreclosure properties. These are commonly referred to as Real Estate Owned (REO) properties.

Buying an REO property is very different than a traditional buyer/seller transaction. The process is much more taxing and several more entities are involved in the REO transaction. This can create more time and challenges.

Many REO homebuyers, especially those buying a home for the first time or their first bank-owned property, get frustrated during the process.Since the REO phenomenon started dominating sales, not coincidently, customer service scores in title, escrow, lending and real estate have plummeted.

Together with my team, I have developed this short, simplified guide to better help our clients understand the REO transaction process.

While this guide will not change the way the transaction occurs, it may help set more reasonable expectations upfront and eliminate some surprises. Buying an REO is a great way to save money and get a fantastic deal. Just be prepared for the uniqueness of the process.

What is an REO or bank-owned property?

A property acquired in foreclosure and now owned by the bank that foreclosed on the property is called an REO or bank-owned property.

How did this property become an REO?

The last owner of this home was not able the mortgage payments. The mortgage note holder seized the property and evicted the owner. The bank attempted to auction the property and pay off the existing liens and mortgages. If that was not successful, the bank was then deeded the property by the Trustee. It is now an REO property.

How do banks sell REO properties?

The banks are not in the real estate holding business so they must sell these homes and turn them into cash. Because most foreclosed properties are not successful at auction, REO properties have flooded the market.

In any market, if there is oversupply, the property values depreciate. Because of the depreciated market, the banks are going to take, in most cases, a substantial loss on the property.

The banks have independent, professional real estate agents that assist them is marketing and selling their REO inventory. The banks also assign asset managers who work closely with these agents.

How do banks price their REO properties?

When a bank takes over a property, they conduct their own due diligence to get an accurate idea of the value of the home. They hire a team of people to assess the current market value of the property through Real Estate Broker Price Opinions (BPO) and, in some cases, full property appraisals.

Based on these findings, they typically price the home within 10% of the current market value. There are always exceptions.

Banks are in business to make money. If they cannot make money, they need to minimize their losses. Banks are looking for a certain "net amount" on each particular property. This "net amount" is based on their research of the current market value minus costs associated with the property. They have priced the home sell quickly but as close to market price as possible.

Many buyers make the mistake of thinking the bank is desperate to get rid of the property. They believe they can submit a low-ball offer and expect to get an acceptance or at least a counter-offer. Think again! Low-ball offers (below 10% of list price) are not typically taken seriously. They may be a waste of your time and your agent’s. Worse yet, you may be perceived as an illegitimate buyer. Banks own many homes in the same area, and they use many of the same agents, so this could adversely affect future offers you make on other properties owned by the same bank or listed with the same agents.

Be reasonable. Do your research with your agent and determine what the home is really worth. Make your offer according to the home’s value, not to list price. There are stories of buyers making tens of offers and not having a single one accepted. By making offers based on the home’s true value and not what it’s listed for, you can mostly avoid this challenge.

How do I find an REO property?

There are thousands of REO properties in our market. There is only one way to effectively research them all in a timely manner...hire a professional real estate agent. The seller, upon the successful completion of the transaction, typically pays for the buyer's agent commission. This will cost you nothing, but may save you tens of thousands.

Are REO properties damaged?

Some are. Many are not. It is important to inspect the home yourself before making an offer. Once you have viewed the property, consult with your lender about the damage the home has, if any.

It is equally important to have a professional home inspector inspect the property before you commit to purchasing it. Your real estate professional will refer you to a top quality home inspector. When the inspection is complete, your lender will likely want to review a copy of it. They do this to protect you and their loan collateral, your new home.

Many loan programs will require repairs to be completed before you close escrow. If you do not have the money to do this and the selling bank is not willing to make these repairs, you may need to find another home.

What does "As-Is" mean?

Nearly every bank-owned property today is sold "as is." You will have to sign a waiver that states you are willing to accept the home in the condition it’s in with no further repair.

If a bank is marketing their home "as is", there is a possibility that the home needs repair and they are not willing to make them. Have your Real Estate Professional give you a thorough run down on what "as is" means to you during a transaction and once you have closed on the property. In addition, consult with your lender before making an offer on an "as is" home. Not all loan programs will allow you to buy a home that needs substantial repairs.

I am ready to buy an REO property, what do I need to do to get pre-qualified?

If you make an offer on a bank-owned property, they may require you to be pre-qualified with a home loan consultant from their own bank. They do this for two reasons; assurances and opportunities.

They want assurances that you are truly qualified to make an offer. While you may be pre-qualified by another lender, they will still want to review your credit, income and asset scenario in their own systems to make sure they are selling the home to a truly qualified buyer. It is not negotiable in most cases and most banks will not consider your offer without a pre-qualification letter from their own institution. This is legal for them to do this. However, you are not required to use this bank for your new mortgage loan; you just need to be pre-qualified through them. You can use whichever lender you choose for your actual purchase.

If you don’t want to be pre-qualified through numerous lenders, you may want to reconsider making offers on bank-owned properties or ask your agent to narrow your search to banks without this requirement.

The banks also want to create a business relationship opportunity with you, as well as your agent.

Do not let this mandatory pre-qualification discourage you. This is truly in your best interest. Many times, the Home Loan Consultants from these banks have been authorized to offer steep discounts and other incentives if you proceed with a loan from their bank. It certainly doesn’t hurt to have multiple lenders competing for your business.

In many cases, the bank is taking heavy losses on the property. If they can recapture the mortgage loan, at least it is not a complete loss. This creates an opportunity to parlay the great deal you got on the home with a great deal on your mortgage as well.

I am pre-qualified and ready to make an offer. What is next?

Your offer is submitted to the listing agent. The listing agent may have to submit to the Asset Manager, who works for the bank, and this is where the negotiation happens. It may take a few days for a response. Be patient. Do not bother writing in a short deadline for the seller to respond. They may not pay attention to it.

The bank will likely respond in the first 48 hours. Some banks take 3 - 5 business days. Once again, be patient. This is not your regular seller. You will not get a response over the weekend or holidays. All offers submitted over the weekend will be presented the following business day.

As a rule of thumb, REO listing agents will tell you if you make an offer and do not hear back within five business days, the offer has been rejected. Do not wait around for the rejection or the counter. It may never come. Come back with a better offer or find another property.

What does bring my “highest and best offer" mean?

Because the homes are priced so well, it is very common for the bank to get multiple offers. If the bank gets multiple offers, instead of making a counter proposal to you, they may go back to all of the potential buyers and ask for each buyer's highest and best offer.This means come back with your best offer, as the bank will choose one at this point. In many cases, the bank will not return counter-offers after they have requested this.

If you are presented with this opportunity, it means you are in the running. You now have one more opportunity to increase the price or better the terms of your offer. You can choose to do nothing at this point but it may not get you anywhere.

Meet with your agent. Determine the true value of the home. Review your down payment, closing costs needs, and loan terms and then come back with your best shot.

I made a list price offer but they didn't respond. Why?

Many REO properties, especially those listed below market value receive multiple offers. Some houses sell above list price. The bank is like any other seller in the market. They can choose not to accept your offer if one comes in they think is better than yours.

If you offer list price and ask for your closing costs to be paid and another buyer offers list price and doesn't seek closing costs, the other buyer's offer is stronger.

How long will it take to complete my transaction and move into my property?

Traditionally, buyer and seller contracts are 30 days. However, this is not a traditional buyer/seller transaction. In today's REO property market, many buyers feel more comfortable with 45-day closings. Many banks have late fees of $100 or more per day past the contracted close of escrow date. These fees add up quickly so it is important to understand what problems can arise that may make you late.

What can make me late?

Aside from the regular loan process, which sometimes takes longer in today's stricter lending environment, there are many challenges unique to REO properties. When the previous owner of your new home was foreclosed on and the bank took possession, a "Trustee's Deed" was issued in the bank's name. If this process is not executed properly, it may cause delays when the county is trying to record the deed into your name. There is little that you can do about this except wait until it is corrected. I have seen this issue take between one day to seven weeks to resolve.

If a Home Owner's Association (HOA) manages the community, your title company will request an HOA demand on the property. This demand will ensure that the bank pays any association fees and fines at close of escrow. If they are not paid at closing, they will transfer with the property into your name and will then be your responsibility.

It’s pretty likely that there hasn’t been an actual person living in this home in sometime. This means the home has not been kept. There may be a lot of fines (landscaping, upkeep, trash, etc.) levied from the HOA.

This can take time and be complicated but is necessary that it is done and done correctly. For more details, ask your escrow officer. It’s their responsibility to get this resolved.

For the most part, if the close of escrow is delayed by problems that are out of your control, the bank should not penalize you. Just be sure to do your part in a timely manner, and you should be okay.

I am in escrow and we discovered a bunch of repairs that need to be made to the home...what do I do now?

Many people that have lost their homes to foreclosure have been struggling financially. This usually means the home has not been kept properly and is in need of repairs and general maintenance. Other homeowners, once they know they are losing their home, damage the property purposely.

When buying an REO property, you must be prepared to do some repairs. Banks may not agree to make these repairs. They may not pay for these repairs. This may require out-of-pocket expense for you.

They may be willing to help with some, but don’t plan on it. Know what you are buying before you make your offer and be prepared to spend some money for repairs before you move in.

In most contracts, you can back out of the purchase if you find problems with the property or in loan qualifying in a certain time period. This is called the due-diligence period.

Make sure you know how long this due diligence period is when entering into a contract. Complete all inspections within that period so you can make an informed decision on whether or not to proceed with the purchase. It is important to respect these deadlines because they are strictly enforced.

Some repairs will be obvious when you visit the property. Others may be identified during the property inspection and the appraisal process. The inspector will identify repairs issues and may be able to give you a written estimate of the cost to repair the property. In some cases, an appraiser may also call for repairs to the property to bring it up to livable or safe condition.

Identify these issues quickly so you know what you are facing and have the opportunity to cancel if necessary. Again, this will help protect your deposit money.You will want to be cautious buying a bank-owned property if you barely have enough money for the down payment and closing costs unless you have arranged for repairs with the seller.

I have signed my loan docs and I am still waiting for my keys. What is taking so long?

Just like you executed many documents at your loan signing, the seller has a stack of closing documents to sign as well. Remember, the seller of your home is a bank or some other financial institution. It may take the representative who is authorized to sign off on these documents days or even weeks to get around to it. Your trusted and skilled escrow officer will make sure to stay on this for you.

So, there you have it. Complicated? Yes. Frustrating? Sometimes. Time-consuming? Quite often.

At the end of the day, hopefully, you are getting a new home for you and/or your family at a much-discounted price so it will all be worth it.

The best tip we can give you is to remain positive and be patient. Expect the challenges. There will likely be some. Together with your professional real estate agent and experienced escrow officer, we will all do our very best to get you through it successfully.

Call us today at 702.285.1990 if you: have any questions specific to your situation, are ready to start your home search, or want to list your home now.

WILL THE NEW MORTGAGE DISCLOSURE ACT CHANGE YOUR CLOSING TIMES?

Dulcie@DulcieCrawford.com (Dulcie) — Thu, 09 Jul 2009 21:05:00 +0000

This news just in courtesy of one of our trusted lenders, Aaron Gordon at Bank of America: In an effort to provide consumer protection and transparency when the buyer gets a mortgage, the Government has made law changes to mortgage loan processing and disclosures that take affect on July 30, 2009. Referred to as the MORTGAGE DISCLOSURE IMPROVEMENT ACT OF 2009, it is part of the Government’s commitment to making sure borrowers completely understand the terms and conditions of their mortgages and are given ample time to review what they are agreeing to.

If you are a homebuyer, here is what you need to know about it.

These changes will affect the processing times of loans. By being proactive and understanding the new Act, your closing dates should still occur in the usual 30 to 45 day timeframes that it takes for a transaction to complete, thereby minimizing the added stress of delayed closings.

Initial disclosures must be provided to an applicant within three days of loan application. No fees can be collected during this three-day waiting period, except for a reasonable credit report fee.

When a borrower makes an application, the lender will present them with initial disclosures. The disclosure package includes the Good Faith Estimate, Truth in Lending disclosure, and other legal forms as required by law.

The lender will not be able to collect any fees for appraisals until the borrower has had at least three days after getting the disclosures for review. This means that the appraisal report cannot be ordered until after the three-day waiting period after initial disclosures.
The borrower must get these disclosures again at least seven business days before he signs his loan documents. If he doesn’t, the closing will be delayed until he does get them and the seven-day period for review has passed.

The borrower must be provided a copy of his appraisal a minimum of three days prior to his loan closing. If he doesn’t, your closing will be delayed until he does get a copy and the three-day window for review has passed.

Any increases in fees that result in an APR change of 0.125% of the loan amount require re-disclosure. The borrower must then get his new disclosures and wait at least three days for review to close. Once again, this is being done to make sure the borrower has time to review what he is getting and be comfortable with it.

What if there are “surprise” costs at closing time? When that happens now, if the numbers are too far off from what was disclosed, he will have to leave the closing table, get new disclosures, get time to review, and will be unable to return for three days.

The only exception to this will be if it’s an emergency, such as if the home will be foreclosed on.

Also, keep in mind that if you change lenders in the middle of the process, the new lender will have to start the disclosure process once again. Changing lenders in the middle of the transaction could result in lengthy extensions.

Many borrowers today are often too busy to come to the office to make the application. These borrowers do it conveniently by phone or online. In these cases, the disclosures are mailed to them. As a result, the timeframes and wait period will be slightly longer.
Most lenders are estimating these changes could add three to 10 days to your closing times. Please plan accordingly.

So, let’s say you want to close as quickly as possible. What can you do to be proactive and make sure the closing time is fast as possible?

Make the application with your lender in person.
Get a fully executed, clearly legible copy of the purchase agreement as soon as it’s available from the lender.
Be ready to pay for the appraisal when asked.
Prepare and be ready to submit all requested documentation (pay stubs, W2’s, bank statements, etc.) within a day or two of application.
Carefully review the disclosure package and notify your lender of any corrections immediately.
Lock your loan at the time of application or early in the transaction.
Choose a credible, reputable, ethical lender you can trust to honor the rates and fees they disclose. Surprises at the closing table will result in lengthy delays.
Choose a lender whom you have confidence in. Changing lenders while in escrow will result in a lot of these disclosure clocks starting over.

If you do all of the above, there is no reason that your 30 to 45 day closing times should be affected by this Act.

It’s important to understand that this Act has been put in place so the buyer has sufficient time to make good, sound, responsible decisions about his loan. It is not meant to delay the process but rather, when taken into consideration, should justify that the loan is for his best interest. If you need straightforward real estate advice or a referral to any of our trusted lenders, please contact The Dulcie Crawford Group at 702-285-1990.

HOW TO TAKE ADVANTAGE OF THE $8,000 TAX CREDIT BEFORE IT EXPIRES FOR 1ST TIME HOME BUYERS!

Dulcie@DulcieCrawford.com (Dulcie) — Mon, 29 Jun 2009 23:53:00 +0000

Not many first-time homebuyers are aware that there is a considerable tax credit that is available for them. And if they know about it, they probably don’t know the details and how it can benefit them in their home search.

We have compiled the following information from trusted sources (i.e. mortgage lenders and escrow officers) to explain how the tax credit can be used to one’s advantage.

Highlights:

Timeframe: Must purchase a home (close and receive title) on or after January 1, 2009 and before December 1, 2009.

Down payment or closing costs: Qualifying buyers can use these funds upfront as a down payment or for closing costs.

FHA-approved lenders only: At this time, only FHA-approved loans are required if tax credit is used as a down payment.

Need 3.5% upfront: While the $8,000 tax credit can be used for the down payment or closing costs, home buyers must still come up with FHA's required 3.5% down payment on their own.

If you are buying a home this year, it's important to know whether you qualify for the $8,000 tax credit for first-time home buyers. Read on for details.

Qualifications for $8,000 tax credit:

Must purchase a home (close and receive title) on or after January 1, 2009 and before December 1, 2009.
Must be a first-time home buyer, which means you cannot have owned a home for the past three years prior to purchase.
Must use as a primary residence. The home cannot be used as a vacation home or rental property.
Cannot purchase a home from a close relative such as your spouse, parent, grandparent, child or grandchild.
Must make less than $75,000 for a single taxpayer or less than $150,000, if filing jointly.

About the $8,000 tax credit:

Use as downpayment or closing costs -- Initially, the tax credit was designed as a refundable credit on buyers' tax return next year -- either up to $8,000 or 10% -- whichever came first. Now, a new HUD initiative allows qualifying first-time home buyers to receive these funds upfront to be used as a down payment or money towards closing, as announced by U.S. Housing and Urban Development Secretary Shaun Donovan. This has been referred to as a bridge loan.
FHA-approved lenders, only -- At this time, only the Federal Housing Administration (FHA) has issued guidance regarding the monetization of the first-time home buyer tax credit. Home buyers using FHA-approved lenders can apply the tax credit to their down payment.
Home buyers must pay the 3.5 percent -- While the $8,000 tax credit can be used for the down payment or closing costs, home buyers must still come up with FHA's required 3.5% down payment on their own.

For more information on the $8000 tax credit, review these Q&A's from the IRS: http://www.irs.gov/newsroom/article/0,,id=206293,00.html

More relevant information can be found on the following links:

http://www.federalhousingtaxcredit.com/2009/home.html

http://portal.hud.gov/pls/portal/docs/PAGE/FHA_HOME/LENDERS/MORTGAGEE_LETTERS/2009_MORTGAGEE_LETTERS/09-ML-15%20USING%20FIRST-TIME%20HOMEBUYER%20TAX%20CREDITS.PDF

As in any financial transaction, we of course recommend consulting with your financial or tax advisor for implications specific to your situation. Call us today if you need referrals to any of our lenders, or for any real estate question, at 702.285.1990.

100% FINANCING WITH NEVADA BOND PROGRAM - FAST FACTS

Dulcie@DulcieCrawford.com (Dulcie) — Sat, 30 May 2009 21:37:00 +0000

First time homebuyers may not be aware that there is still 100% financing still available for well-qualified applicants, through the Nevada Housing Division’s Down Payment and Closing Cost Loan Program. The NHD offers the program to provide homebuyers under its First Time Homebuyer Program with down payment and closing cost assistance. This statewide initiative offered in every county in the state is one of the only 100% financing options left.

One of our preferred lenders, Aaron Gordon at Bank of America Home Loans, has provided us the following information:

Please bear in mind that this is a loan and a second mortgage - not a gift - which can provide up to $10,000 for down payment and closing costs.

The interest rate on a 30 year bond loan is 6.2000% today. As of 5/18, it’s 4.750% on FHA when you don’t use the bond.

The second mortgage of 3.5% to cover your down payment comes with an 8.20% interest rate and is a 20 year loan.

When is this good? If you have no other way to get the 3.5% down payment on an FHA loan.

On a $165,000 purchase, the Bond loan will cost the borrower an extra $150 - $175/mo. It makes a lot more financial sense to try and get the 3.5% or $7,000 down on this loan, as it will pay for itself within three years.

EXAMPLE:
Scenario 1
$165,000 sales price
3.5% REGULAR DOWN PAYMENT – 4.75% RATE
$845.00/month

VS.

Scenario 2
$165,000 sale price
0% DOWN PAYMENT – 6.20%
$992 + $49 for 2nd = $1041/month

This loan is not available for everyone and is based on qualifying guidelines. Although there are some strict eligibility requirements, this program may work for many first-time homeowners.

There are limited lenders in Nevada; Bank of America Home Loans is the main servicer.

Qualification Guidelines for the Nevada Bond Program
A first-time home buyer is defined as someone who has not owned or co-owned their own residence within the past three years. So even if you owned a home a few years back, if it’s not in the last three you may still qualify.

If you are purchasing in a "Targeted Area" there are no restrictions on former home ownership. Please contact Aaron if you think the home may be in a targeted area. These are usually areas where this is not as much resale activity and the State wants to stimulate its growth.

Total gross household income must fall within the Maximum Income Limits. In Clark County, if you have a 1-2 person household, income cannot exceed $78,480. If you have a 3 person or more household, it cannot exceed $91,560.

In Washoe County it can be a bit higher. In Elko County a bit lower. See the website for details at http://nvhousing.state.nv.us then click “NHD – Down Payment Assistance Program”.

The purchase price of the residence you wish to buy may not exceed the Maximum Purchase Price Limits for the area in which it's located.

Those maximums currently look like this:

Clark: $349,515
Nye: $283,981

Keep in mind: on a $349,515 sales price, the 3.5% down payment requirement would be $12,233 plus closing costs. Therefore, the $10,000 max bond help won’t quite cover that. Keep it under $300,000 if you cannot come up with anything.

Income must support the repayment of the loan pursuant to the underwriting criteria applied by FHA, VA, or Fannie Mae, as applicable. This simply means your loan has to be able to be approved by FHA, Fannie Mae, Rural Housing, or VA.

Also, if you require that assistance, you will have to prove that your assets, after closing, are $5,000 or less including, without limitation, cash, savings accounts, stocks, bonds and equity in real property. 401K is exempt, which is great news!!

You will also be required to successfully complete a First Time Home Buyer Education Course in person.

This is a fantastic loan program for first-time homebuyers who find themselves unable to qualify because they lack a minimal down payment.

However, due to historic low interest rates, they will want to exhaust all gift possibilities first.

LAS VEGAS SHOWS HEALTHY SIGNS OF RECOVERY

Dulcie@DulcieCrawford.com (Dulcie) — Sat, 30 May 2009 21:29:00 +0000

In a recent report from the Greater Las Vegas Association of Realtors through an article published in the Las Vegas Review Journal, Las Vegas’ home sales is continuing its upward trend for 13 consecutive months, although the trend in falling home prices continued in April.

As reported in the RJ:

“Realtors sold 3,198 single-family homes in April, a 78.3 percent increase from the same month a year ago. Overall, sales have more than doubled for the first four months of the year.

However, the median price dropped 39.9 percent to $141,720 as bank-owned properties dominate the market, accounting for about 80 percent of all sales and driving prices down.

The inventory of homes for sale, which peaked above 24,000 in 2007, has steadily declined to 22,112 in April, down 3.6 percent from a year ago.”

You can read the full story here: http://www.lvrj.com/business/44634067.html

The increase in home sales is largely attributed to unbelievably low mortgage rates and the abundance of homes for sale on the market. This is a golden opportunity for homebuyers because the bargaining power is in their hands. But one word of caveat: in today’s market where bank-owned and foreclosed homes flood the market, you need to work with a trusted Realtor who can guide you through the myriad choices and decisions you have to make, especially when it comes to the due diligence which includes home inspections. You need to have the best qualified professionals to assist you in identifying the potential problems that may arise with distressed properties that have been neglected or is in dire need of maintenance, as these can cost the homebuyer extensively in future repairs. It can be a time-consuming process so patience is indeed a virtue.

With the continued decline in home prices, the existing market is paving the way for a more affordable Las Vegas, although it will take a little more time for normalcy to set-in. For homeowners who are considering selling their home, it will be a case of what caliber of Realtor you have. Listing agents are a dime-a-dozen, and finding someone who can actually help you sell your home is like finding a needle in a haystack.

It doesn’t matter which side of the fence you are on. The Dulcie Crawford Group can help you whether you are a first time homebuyer or a homeowner who wants to sell your property. Call us today for real sound advice – we thrive in a market like this!

UPSIDE DOWN REFINANCE NOW AVAILABLE -THE OBAMA PLAN IS HERE!!

Dulcie@DulcieCrawford.com (Dulcie) — Tue, 14 Apr 2009 22:19:00 +0000

We are once again in high spirits to share this piece of good news that the Homeownership Affordability and Stability Plan (HASP), also referred to as “The Obama Plan” by some, has finally become available. This should bring some relief for homeowners whose financial situation are upside down and are left out in the cold because the value of their homes have significantly decreased, leaving them on a reluctant wait-and-see predicament. However, a word of caution from our preferred lenders Paula Clark of Wells Fargo Home Mortgage and Aaron Gordon of Countrywide Home Loans: this isn’t for everyone. Some will be too far upside down. Some won’t be eligible for a number of other reasons as we will outline below.

Still, this is very exciting news for those who are timely with their payments, want to refinance, but haven’t been able to take advantage of low rates due to valuation challenges.

Countrywide, which will soon be Bank of America Home Loans, is one of the first lenders nationally to market the new Homeownership Affordability and Stability Plan (HASP). Some call this “The Obama Plan.” This initiative is for borrowers who have demonstrated an acceptable payment history on their current mortgage but due to declining home values have been unable to take advantage of historically low interest rates to refinance or stabilize their payment.

Please read the rest very carefully. This will help many but not everyone.

THE GUIDELINES BELOW IS FOR CURRENT COUNTRYWIDE CUSTOMERS ONLY WHOSE LOANS ARE HELD BY FANNIE MAE AND FREDDIE MAC AS INVESTORS.

If you are not a Countrywide customer, contact your own bank and ask about your eligibility for HASP.

Here is a quick look at the highlights for the refinance piece of the plan:

The maximum loan amount is $417,000 in Clark County.
Your FIRST MORTGAGE cannot be upside down from the home's value by more than 105%. Your second mortgage may not count.
The value of your home is NOT determined by an appraisal but by Fannie Mae and Freddie Mac’s automated systems. No appraisal is necessary.
Your second mortgage does NOT count to determine your eligibility if that second mortgage is held by Countrywide or Bank of America. So let’s say your home is worth $200,000 today. You owe $210,000 on the first and the rate is 6.500%. You have a $70,000 second mortgage that’s held by Countrywide or Bank of America. This program allows you to refinance up to 105% of your first mortgage. This means you can refinance the first for $210,000 at close to today’s rates. The second mortgage will stay intact.
If your second is with Countrywide or B of A, we will very likely re-subordinate our second mortgage to allow this refinance to happen.
The investor on your loan has to be Fannie Mae or Freddie Mac.
There is no cash-out. You cannot consolidate a first mortgage and a second mortgage.
In this first phase, you are ineligible if you currently have mortgage insurance on your loan. If you bought your house using a first and second mortgages, you can still qualify.
You are still eligible so long as you have no more than one late mortgage payment in the last 12 months. You may be permitted more than one late payment in the last 12 months on your Countrywide or B of A second mortgage.
Your current loan cannot be VA, FHA, or a subprime loan.
It's a streamlined loan. No income documentation and no appraisal. It’s a stated income loan. You won’t have to prove income again. You will sign a 4506-T however which is a form that allows the lender to obtain a copy of your tax return.
Debt-to-income ratios may not matter if you are not increasing your current payment by more than 20%.
There is no minimum credit score if your new payment is no more than 20% higher than your current one. 620 is the minimum if it’s 20% or more higher.
Rates are slightly higher than current market but still very competitive.
If you didn't have mortgage insurance before, you won’t have it now, regardless of your loan to value.
Prepayment penalties on your current loan will be waived by Countrywide and Bank of America to make this program work for you if you are eligible.

If you are a Countrywide customer, give Aaron a call or send him an email to determine your eligibility. Please have your loan number ready when you call or email it to him so he can research your eligibility for you.

If you are interested in this program and are not a Countrywide customer, please contact your bank and ask them about their participation in HASP.

Aaron Gordon can be reached at:
Countrywide Bank, FSB
Cell: (702) 283-2333
Office: (702) 304-8900
Secure eFax: 1-866-905-7922
10190 Covington Cross Drive #190
Las Vegas, NV 89144
Email: aaron_gordon@countrywide.com
Web: http://countrywidelocal.com/aarongordon

Existing Wells Fargo clients need to call their lender and ask if their loan is a FANNIE MAE or a FREDDIE MAC loan. If they have a NON-Wells Fargo loan FREDDIE MAC insured loan- then they must go back to their existing lender to do the refinance loan. If they have a FANNIE MAE loan, then they can go to any lender that they want to do the refinance.

The important thing to remember is that relief is finally coming soon for existing homebuyers that are underwater!

Please feel free to contact Paula Clark at the following:
Wells Fargo Home Mortgage
8337 West Sunset Road, Suite 270
Las Vegas, NV 89113
Office: (702) 868-3920
Cell: (702)277-3554
eFax: 1-866-609-2470
Email: paula.l.clark@wellsfargo.com
Web: http://paulalclark.com/

MORTGAGE RATES REACH HISTORIC LOWS!

Dulcie@DulcieCrawford.com (Dulcie) — Tue, 31 Mar 2009 20:56:00 +0000

Many homebuyers are still on the fence whether to buy now or wait for rates and prices to go down further. The big question is: have we reached rock-bottom yet? That’s a question that no one can predict, and it is not going to be a simple answer as market conditions change on a daily basis.

The great news is, mortgage rates have reached an all time low and it would be most sensible to lock in the rates now if it fits within your budget. We have not seen rates like these in 52 years – and we don’t know how long this opportunity will be available to well-qualified borrowers. The bottom line is, do not take a chance and play a waiting game if you are ready to buy and has found a property you like.

The following information is provided by one of my preferred lender Aaron Gordon of Countrywide Home Loans:

“As the government announces more purchases of mortgage-backed securities, rates continue to plummet.

Interestingly, if you are still sitting on the sideline waiting for rates to drop further, the head of Freddie Mac came out this week and said he believes rates are at the bottom and any further drop will be minimal.

Plan on around:

4.375% WOW! (APR 4.508) FOR A 30 YR FIXED CONVENTIONAL LOAN with ONE POINT, NO ORIGINATION!
4.750% (APR 4.862) FOR A 30 YR FHA / VA LOAN, WITH ONE POINT, NO ORIGINATION!
5.750% (APR 6.024) ON A 30 YR JUMBO LOAN OVER $417,000 with ONE POINT, NO ORIGINATION!
5.125% (APR 5.262) ON A 5 YR JUMBO AR M with ONE POINT, NO ORIGINATION!

NO ORIGINATION FEE ON ANY OF THE LOANS ABOVE. These rates are for purchases only. Refinance rates are slightly higher.

NEW GUIDELINE ANNOUNCEMENTS THIS WEEK:

FHA announced new limits to cash-out refinances. They used to allow cash-out up to 95%. It’s now been lowered to 85%. Here are the rules:

Must have owned the property at least 12 months
You cannot be behind in your mortgage.
You cannot have a non-occupying co-borrower to qualify for the new cash out limits.”

Here are more good news from Paula Clark, also a preferred Home Mortgage Consultant from Wells Fargo Home Mortgage:

“Friday's news showed that consumers are being understandably cautious with their finances, as the Personal Savings rate remained above 4% once again in February and among the highest savings levels seen in a decade.

Meanwhile, the government continues to make bold moves to help our economy. On Monday, Treasury Secretary Geithner unveiled a plan to remove toxic assets from financial institutions by using money from the $700 Billion TARP fund. The government will help mitigate the risk by offering private investors Billions of dollars in low-interest loans to help finance the purchases. Indeed, it's a bold strategy - let's see if it pays off!

And...there's room for cautious optimism on the economy, as good news was noted on several fronts last week. The housing market received good news when both Existing Home Sales and New Home Sales came in stronger than expected. Additionally, Durable Goods Orders for February came in better than expected, showing the first increase in six months, and the Core Personal Consumption Expenditure Index (Core PCE) showed inflation is presently at tolerable levels. Plus, the US Dollar received a boost when China said it will continue to purchase US Treasuries.

Bonds were jostled around mid-week, but home loan rates ultimately ended the week very close to where they began...near historic lows.”

You can read Paula’s full bulletin at http://www.mmgweekly.com/w/w.html?SID=81ca0262c82e712e50c580c032d99b60

Paula can be reached at tel. 702.868.3920, Cell 702.277.3554, email at paula.l.clark@wellsfargo.com, or on the web at http://paulalclark.com/.

Overall, the market is showing some robust activities in the last weeks. We at The Dulcie Crawford Group are always at the forefront to bring you the latest updates and will be happy to answer any questions you may have and assist you in your homebuying process. Call us today!

NEVADA BOND PROGRAM/100% FINANCING - LOWERS RATES!

Dulcie@DulcieCrawford.com (Dulcie) — Tue, 10 Mar 2009 22:17:00 +0000

Today, the Nevada Bond Program, the only active program with 100% financing, announced lower rates. Effective with new loan registrations on or after March 12, 2009, the Nevada Housing Division will adjust rates for the 2008 program as follows:

30 YR-FIRST MORTGAGE IS NOW 6.67% (it was 7.250%)

20 YR-2nd MORTGAGE, WHICH IS USED FOR THE DOWN PAYMENT ASSISTANCE, IS NOW 8.50% (used to be 9.250% )

The NHD bond program offers a first mortgage along with a second mortgage for down payment assistance of up to $10,000. Restrictions apply.

For details, please feel free to contact my preferred lender:

Aaron Gordon
Home Loan Consultant / Sales Manager
Countrywide Bank, FSB
Cell: (702) 283-2333
Office: (702) 304-8900
Secure eFax: 1-866-905-7922
10190 Covington Cross Drive #190
Las Vegas, NV 89144
email: aaron_gordon@countrywide.com
web: http://countrywidelocal.com/aarongordon

ARE YOU ELIGIBLE FOR THE OBAMA MORTGAGE PLAN?

Dulcie@DulcieCrawford.com (Dulcie) — Tue, 10 Mar 2009 22:06:00 +0000

Here is another helpful piece concerning the new Home Affordability and Stability Plan (HASP), courtesy of my preferred lender Aaron Gordon at Countrywide Home Loans.

There have been a lot of questions about the HASP that will allow for refinances up to 105% of property values and for note modifications down the 31% of income, if the investor on your loan is Fannie Mae or Freddie Mac.

Answers and guidelines have been coming in daily. Some are very exciting.

For example, the plan doesn't care about occupancy. It applies to investment and vacation homes as well as owner-occupied homes. There are no minimum credit score requirements. There are no debt-to-income maximums. You just have to demonstrate an ability to repay.

Here is how you can determine if you are one of the seven to nine million homeowners eligible for relief under the plan:

STEP ONE: ARE YOU FANNIE OR FREDDIE BACKED?
To determine if Fannie Mae or Freddie Mac is the investor on your loan, a requirement of the program, you can do any of the following:

1) CALL your servicing company, which is where you send your payment.

2) Or you can do this by INTERNET:

Does Fannie Mae Own Your Mortgage? Click or copy and paste the link below:
http://www.fanniemae.com/homepath/homeaffordable.jhtml

Does Freddie Mac Own Your Mortgage? Click or copy and paste the link below: http://www.freddiemac.com/corporate/buyown/english/avoiding_foreclosure/avoiding_foreclosure_form.html

3) Or you can do this by TELEPHONE:
FREDDIE MAC 1-800-FREDDIE (8am to 8pm EST) FANNIE MAE 1-800-7FANNIE (8am to 8pm EST)

STEP TWO: DETERMINE ELIGIBILITY
If this home is your primary residence, go to www.FinancialStability.gov or click or copy and paste this link: http://www.financialstability.gov/makinghomeaffordable/refinance_eligibility.html

This site will walk you thru a step-by-step questionnaire that will help you determine eligibility and more.

STEP THREE:
If it says you are eligible for refinance, call your preferred loan officer. If you are eligible for Note Modification, call your bank.

NOTE: If this property is a vacation home or an investment home and the home's value is upside now in value by no more than 5%, call your preferred lender and ask if you are a candidate for HASP. It may take a few weeks before guidelines are known but you can start getting on interest lists now.

We at The Dulcie Crawford Group are continually on the lookout for information that can affect your individual real estate situation, and we would like to be your leading source of information. Stay tuned for more updates as they become available.

FHA RAISES CLARK COUNTY LOAN LIMIT TO $400,000

Dulcie@DulcieCrawford.com (Dulcie) — Wed, 25 Feb 2009 22:26:00 +0000

Just hot off the press, we are excited to share this very good news to all of you, courtesy of my preferred lender Aaron Gordon at Countrywide Home Loans.

As part of the Obama mortgage plan, that FHA has raised the loan limit to $400,000 in Clark County and $325,000 in Nye County.

You can find details at https://entp.hud.gov/idapp/html/hicost1.cfm

This means buyers looking for homes up to $412,000 can now qualify with as little as 3.5% down. This is one ray of hope that we have been waiting for to boost the housing industry and hopefully, be the catalyst for a much needed market stability.

Stay tuned for details on rates. If you or someone you know has been putting off the decision to buy a home, I can’t think of a better reason than this! The market is primed for qualified buyers: there is a sizeable amount of great inventories, mortgage rates are at an all-time low, and financing is available for responsible borrowers. It’s a win-win situation for buyers and sellers.

Please feel free to contact me if you have any questions at 702.285.1990. The Dulcie Crawford Group aspires to be your trusted Realtor for life!

STIMULUS PACKAGE AND OBAMA MORTGAGE PLAN ....SIMPLIFIED

Dulcie@DulcieCrawford.com (Dulcie) — Fri, 20 Feb 2009 23:31:00 +0000

Here is a very straightforward article with regard to the Obama Stimulus Package signed into law this week and how it could affect you as a homeowner or buyer, courtesy of my preferred lender Aaron Gordon of Countrywide Home Loans. His contact information is below for your reference should you need to contact him. We at the Dulcie Crawford Group will also be happy to answer any questions you may have. We have also included some links to the Stimulus Package if you are interested to learn more.

There has been a lot of activity this week attempting to solve the historic economic problems. No one expects this to cure the problem overnight but it could reduce the damage.These two plans have a dramatic effect on our business. Let me try and make them easy to understand.

The $787 billion Economic Stimulus Package

Here is how the Economic Stimulus Package affects our business:

The Fannie and Freddie loan limits will be raised to $727,000 in high cost areas.

Although this doesn't affect Las Vegas, which will stay at $417,000, it does our neighbors in Southern California. Market recovery in California is nearly as important to our local economy as theirs. Keep in mind most of our tourists come from their and many of our transplants.

The first-time homebuyer tax credit will be raised to $8,000 with no payback. Many were hoping this would be $15,000 as first passed through the Senate but it's settled at $8,000. You have to buy a home between January 1, 2009 (yes, it's retroactive) and December 31, 2009. You have to be a first-time homebuyer or have not owned a home in the last three years. To get the full benefit, you have to make less than $75,000 as a single tax payer or $150,000 as married taxpayers.

If you sell the home before you have been there three years, you have to forfeit the credit or pay it back if you already wrote it off. This credit is different than the $7,500 one first-time buyers got in 2008. Right now, that credit has to be paid back. However, there is some discussion that it may not have to be repaid. If the repayment provision in the new home buyer tax credit is made retroactive back to April 9th 2008, when that planfirst took place. This detail is still to be finalized.

Interest rates should stay low

Rates have been driven down to historic lows since late November. This is a direct result of the Government buying hundreds of billions of dollars in mortgage-backed securities.The Economic Stimulus package calls for the Government to buy another $200-300 billion of mortgage paper from Fannie and Freddie. We could see historically low rates through the end of the year.

The Homeowner Affordability and Stability Plan (Obama Plan)

You can read the plan here:
www.treas.gov/initiatives/eesa/homeowner-affordability-plan/FactSheet.pdf

The complete details will be announced on March 4th.

The plan seeks to help as many as 9 million Americans avoid foreclosure by restructuring or refinancing their mortgages. The program is intended to help responsible homeowners who are experiencing financial hardship and may be at risk of losing their homes to foreclosure. Lenders will not be forced to participate. It’s voluntary.

Here are the highlights:

Right now if you want to refinance, and your loan amount is over $287,500, you need around 20% equity in your home. The new plan allows homeowners who are current on their mortgage to refinance through Fannie and Freddie up to 105% of the value of their home.

This means if you owe $200,000 on your home and it's only worth $190,000 youcan now refinance. The 105% financing includes your closing costs up to 4%.Most Las Vegans are more than 5% upside down. There is not much relief for them in this plan.

If you are late on your mortgage, the Government is now introducing a new standardized form of note modification. This is NOT a principal reduction. Your loan amount will not change. This is modifying your existing loan. If you currently owe $250,000 on your mortgage and your home is worth $175,000 you would be modifying your $250,000. Not getting a new mortgage for less.

The Government will be financially incentivizing homeowners and loan servicers who modify mortgages successfully. If you modify your loan under this plan and make your payment on time for five years, you may be eligible for up to $5,000 in reduction of your mortgage debt.

The lenders who participate in the plan will be agreeing to let you modify your loan to 38% of your gross income. This means if you make $4000 per month, they will be agreeing to lower your payment to $1520. Then the Government will step in and help you lower your payment to 31% or $1240. They will pay the lender the difference out of the $75 billion in the fund.

You need to be able to document your income. This will be challenging for some self-employed borrowers.

The government is also investing hundreds of billions in Fannie and Freddie to keep them solvent and aggressive in making loans, while keeping mortgage rates low.

If you seek relief under the plan, the home must be your primary residence. Investment properties and second (vacation) homes are not eligible.The loan must be a conforming loan. That's $417,000 or under in Las Vegas. The homeowner must be able to qualify for a 30-year fixed mortgage payment with their current income.You must be employed to take advantage of the refinance. If you are not, you may be eligible for the modification still.

You may be eligible for a loan modification in this plan even if you have not been late yet or missed a payment. Let's say you have a first and second mortgage. Under this plan, you may be eligible to modify the first lien so long as the second agrees to re-subordinate the second if necessary.

The plan also calls for changes to personal bankruptcy provisions. This plan will allow bankruptcy judges to modify mortgages written in the past few years.If you have any questions, please don't hesitate to contact me.

Aaron Gordon
Home Loan Consultant/Sales Manager
Countrywide Bank, FSB
Cell: (702) 283-2333 Office: (702) 304-8900
Secure eFax: 1-866-905-7922
10190 Covington Cross Drive #190Las Vegas, NV 89144
email: aaron_gordon@countrywide.com
web: http://countrywidelocal.com/aarongordon

More on the Stimulus Bill on the web:
http://news.yahoo.com/s/ap/20090214/ap_on_go_co/stimulus_stakes_who_gets_what
http://news.yahoo.com/s/ap/20090215/ap_on_go_pr_wh/obama

Las Vegas Sales up 15% and new Home Buyers Tax Credit

Dulcie@DulcieCrawford.com (Dulcie) — Sat, 14 Feb 2009 00:48:00 +0000

The Month of February has been as busy as January in the re-sale Housing market.
Sales are up 15% in the last quarter of 2008 and I expect to see the same pattern in the first quarter of 2009. I am seeing many first time buyers taking advantage of the new pricing and interest rates in the low 5% range and even high 4% range over the past two months now. I have also experienced more calls and requests for relocation materials and information than I had seen in 2008. This level of relocation interest may be showing that housing affordability has reached a level that will create new growth in our city again. I am optimistic as usual that the housing market will recover next year, but that depends if the new administration in Washington gets more proactive in the housing sector. If they do more with the toxic debts that the banks now hold to buy it off the banks’ hands, we can see a recovery much quicker, and inventory levels will plummet quickly as well. I do not feel that we will see appreciation growth into the 10% range again until 2012, but we could see 3-4% as early as late 2010 or early 2011.

There is, however, some silver lining showing on the horizon. According to a recent article in Forbes.com, “Motivated sellers in Las Vegas accounted for 64% of sales in October, the highest rate in the country. Home sale prices from last year are down 28%, but home sales are up 15%. That means buyers are getting deals and hastening Las Vegas' recovery.” I’ve included the link to the full article, as well as how the Stimulus package will impact home buyers.

Buyers in this market need to weigh in on what it will cost them to buy now at these all-time low interest rates vs. if the housing market should continue down another 5-10. Over the life of a 30 year loan, a buyer paying .5% higher interest rate will usually cost them more than if the home went down 30 or 40K. Buyers should also consider the tax implications of putting off buying and renting as well. Higher tax bracket income earners are loosing valuable tax breaks while renting. As one of my recent clients said to me recently as they closed on their new home “I need to start living a settled and permanent life with my family to be able to enjoy each day instead of wondering when I may get a notice to vacate my rental home. My wife wants to paint walls, hang curtains and plant a garden, these are things we have put off just renting and not owning. The rest of our settled lives begin NOW.”

The Stimulus package has been approved, and I will blog on what exactly it will mean for home owners and the housing market again in the next few weeks, as more credible information unfolds.

If you are ready to Buy or Sell call me for a no obligation consultation.

Have a great Valentines Day!!

Dulcie Crawford

Starting 2009 on a Positive Note

Dulcie@DulcieCrawford.com (Dulcie) — Thu, 22 Jan 2009 00:47:00 +0000

Well, we are moving in a positive direction again! The end of 2008 ended with Sales at a huge growth over this time last year, please see the Ticor Title market report chart below for the market sales in January 2009.

Prices still fell in the last quarter, but sales continue to climb. This is such an unusual combination that a Buyer’s market like this cannot last much longer.

I am also including a report from Morgan Stanley now owned by JP Morgan Chase Bank that discusses the effects of the economy if rates do fall to 4.5% which they are close to now. Please see the Rate report from Countrywide Home loans and the Tip of the week from Aaron Gordon, one of my preferred lenders. Aaron discusses tips to get offers accepted by the bank, and that they have to be written to cover costs that may be new to the borrower's side. It takes sharp and strong negotiations to get buyers what they want when the banks try to rule the deal. The Real Estate Agent needs to know what they can negotiate and what can’t be negotiated on the buyer’s side to make the deal work, but to still get the best possible price but fair deal for the Buyer.

The Political world is also discussing rates getting as low as 4% to further stimulate the economy and help re-finance out many loans that could end up in a “At Risk” scenario as the bank would say.

Many banks are aggressively re-modifying loans now, and working to approve short sales quickly verses the long delays we had seen in early 2008. I have had several borrowers tell me that they are being offered attractive deals to stay in their homes vs. short-sale or foreclose.

I am consistently adding new helpfull pages to my Website. Please see my new Raving Clients page, and the link to http://www.understandingforeclosureslasvegas.com/.

Any Questions please feel free to call or e-mail me anytime.

TIP OF THE WEEK : "HELP ELIMINATE THE BUYER'S CLOSING SURPRISE"
Last week, I wrote about how 3% may not be enough to cover your buyer's closing costs today on bank-owned properties especially on sales prices below $150,000.
This can create a financial surprise at close can create a delay in your closing or, even worse, jeopardize it.

Here are some tips for you to look for when reviewing your net sheet and getting a Good Faith Estimate, especially when you are hopeful to get back part or all of your earnest deposit money.

Taxes are higher today. Due to the dramatic depreciation in sales prices, many homes have property taxes that are far higher than "normal." Most lenders use automated systems that tell us the "average" property taxes for a home in that sales price. We based our Good Faith Estimates on that number. That number is often wrong. When you get pre-qualified, its important to send the lender the MLS listing that shows the property taxes or at least let the lender know who much the property taxes are for better accuracy.

County Taxes. The County usually collects between 4 - 6 months in property taxes in advance. If your Good Faith Estimate says anything less, call the County to confirm what will be collected at the time of your closing.

Foreclosure Fees. Many selling banks have fees related to your transaction that they are counting in your seller contributions. I have seen this fee as high as $1000. Be prepared. Ask your escrow officer to get a list of the selling bank's fees early in your transaction.
Transfer taxes. This tax, which is $5.10 per $1,000 or sales price, can be paid by the buyer, seller or both. However, some sellers, like Fannie Mae and Freddie Mac, will not pay this at all. Know who is paying this tax and communicate it to your lender.

Prepaid property taxes. Some selling banks have paid the County the property taxes on the home they foreclosed on many months or quarters in advance. When you buy this home, they must reimburse the bank. I have seen banks that pay 2 -3 quarters in advance. This can be a big number that surprises the buyer at close. Get with your escrow officer to see how far in advance your selling bank is on their taxes.

HOA fees and HOA Transfers. We are seeing HOA fees and transfers much higher on bank-owned properties than on a normal buyer-seller transaction. Please confirm what's owed the HOA with your escrow officer as early in the transaction as possible.

Limits on seller contributions. Some selling banks, when they agree to pay closing costs, no matter how much they agree to pay, will still refuse to pay certain items like title fees, escrow fees, and more. Its important to get with your agent to see if the bank you are dealing with has any conditions like this before going over closing costs with your buyer.

The bottom line is we all have high expectations of customer service. We all want your transaction to be as smooth and problem-free as possible. The greatest threat to these high standards is a financial surprise at close or a buyer who is expecting a refund at close that doesn't come.

By understanding the unique nature and costs of dealing with REO properties and banks as sellers, we can all avoid financial surprises at close.

Gordon Team - Weekend Rate Report - January 16, 2009

WEEKLY RATE REPORT:

Although national news is reporting that rates are down from last week, which is incredibly the 11th week in a row they have declined, in this week-to-week report, which runs Friday to Friday, they have increased slightly. The national news reports rates from Wednesday to Wednesday.

The 30 year on a conventional loan is around 5.000%. FHA / VA - 5.250%. Jumbo loans over $417,000 around 6.125%.

Why are rates staying so low? The Fed is buying mortgage bonds. This is making it so mortgage rates stay down. The Fed is doing this to stimulate home buying.

Although refinancing is at a fever-pitch, these low rates are not stimulating purchases as hoped.

Refinances are up over 100% from this time last year.

NEW GUIDELINE ANNOUNCEMENTS THIS WEEK:

Some big announcements this week. Second mortgages are getting even more challenging to get unless you have excellent credit.

Fannie Mae announced risk-based pricing adjustments, based on credit scores, on their loans this week.

What this means is that if you plan on putting down 10-20% down to get a conventional loan, don't expect the 5.00% rate of today unless you have credit scores over 680.

There will be additional rate adjustments on you as your credit score decreases. Your rate today could be as high as 6.000% or 7.000% as you get closer to a 620 credit score.

Lower the credit score, the higher the rate, unless you do FHA or VA.

SUCCESS STORY OF THE WEEK: "Frankie, Janie and the Gamble"

Earlier this year, Frankie and Janie were buying a home using an FHA loan.

When I first discussed rates with Frankie, the 30 year was about 6.375%. He didn't like the rate. "Aaron, lets float," he said. Although I strongly suggested this was a bad idea, Frankie was adamant. "The Fed is lowering the Prime rate and mortgage rates are coming down too," he said.

I explained to him that the Prime Rate is an overnight rate in which banks loan money to each other. The Prime Rate is not directly tied to mortgage rates. Mortgage rates are tied to bonds. Frankie didn't care.

"Trust me, they are coming down!!" he said. Janie disagreed with him and wanted to lock too. However, she couldn't convince him either.

As his close of escrow quickly approached, the market turned for the worse. 6.500%. 6.625%. Then 6.750%. At each level, we spoke. "Just watch! It's coming down," he said.

It didn’t. When it came time to close his loan, the rate was still at 6.750%. Frankie requested an extension of escrow to allow more time for rates to drop. The seller declined. His loan closed at 6.750%. He was bummed but understood he took a gamble that didn't pay off.

When rates reached their historic lows, I immediately thought of Frankie and Janie. I called them and told them about the FHA Streamline Refinance. No appraisal. No credit report. No income or asset documentation. Low fees. A loan that can be closed in a few weeks and lowers your payment. It's about the easiest loan there is today.

Frankie locked at 5.000% for 30 years and saved $263 per month!! After he closed last week he called me and said, "I told you they were coming down!!!"

I can’t remember the last time I laughed that hard. He is certainly right. Rates are about as low as they are going to get. Lock when you can.

Dulcie@DulcieCrawford.com (Dulcie) — Fri, 05 Dec 2008 02:04:00 +0000

Here is an article that I find to be of interest due to the past history of the Las Vegas Market. Las Vegas has rebounded quickly to the last two recessions of 1987 and September 11th, 2001. This article describes the future growth of the Las Vegas Valley as having strong positive momentum. The downward slide of the Real Estate market is not going to last forever so interest rates are again at historic lows and the Treasury Department announced today actions that are targeted to lower interest rates to as low as 4.5%. Today’s interest rates are attached to this blog from my preferred lender Aaron Gordon at Countrywide Home Loans.
Here are two factors to consider: how long will Buyers be able to buy homes at $100 per square foot and at 5% or lower interest rates? I strongly believe the bottom of the market is here, the window of opportunity is now. Buyers need to get off the fence and take advantage of home ownership while these two factors remain.
Please call me with any questions or concerns. Remember Countrywide’s rate sheet is attached below. If you would like to be updated weekly on the interest rates for home loans please contact our office and we would be glad to add you to our rates update emailing list.
Happy Holidays!

Dulcie Crawford
The Dulcie Crawford Group
Realty ONE Group
9089 S. Pecos Rd., Ste. 3400
Henderson, Nevada 89074
Office 702.588.6842
Direct 702.285.1990
Fax 702.447.2800 DIAL AREA CODE
http://www.blogger.com/WWW.DulcieCrawford.com
Dulcie@DulcieCrawford.com
http://freehomevaluehenderson.com/
http://freehomevaluelasvegas.com/

Which cities will weather the downturn best?
Study shows metros entering slow period with most positive momentum
Las Vegas is one of the nation’s cities entering this recessionary period with the most positive momentum.

Gabriel Bouys / AFP - Getty Images file

By G. Scott Thomas
updated 5:08 a.m. PT, Wed., Nov. 12, 2008
This sentence — or one like it — can be found in almost any prospectus: "Past performance is no guarantee of future results."
But that doesn't mean history is a worthless indicator. Consider, for example, the nation's metropolitan areas. The link between their past and future performances is often a strong one.
The 10 fastest-growing metros in the prosperous 1990s have continued expanding in the present decade, despite the erratic nature of the economy. All 10 of these hot markets registered population gains of at least 13 percent between 2000 and 2007, led by Las Vegas' seven-year increase of 33.5 percent.
The 10 biggest laggards of the '90s, on the other hand, have continued to struggle. Seven of these cold areas also lost population from 2000 to 2007, with Youngstown, Ohio, suffering the worst decline, 5.4 percent.
Recent growth trends offer an advance look at the markets best positioned to weather the current economic downturn — and the ones that have the most cause for concern.
Bizjournals analyzed recent performances to identify the nation's current growth centers — the metros entering this recessionary period with the most positive momentum. Las Vegas, Raleigh, and Cape Coral-Fort Myers, Fla., led in bizjournals' new rankings of America's growth centers:
· Las Vegas sits in first place because of its broad-based record of economic expansion. It was among the three fastest-growing markets in population, employment and income during the past five years, the only metro to do that well in all of those categories.
· Raleigh, which is second in the overall standings, picked up considerable steam between 2005 and 2007. Its population soared 9.6 percent over that span, outgaining all other metros. It also led the nation in private-sector employment growth during the same two years.
· No. 3 Cape Coral-Fort Myers, Fla., has been a powerful population magnet. It set the pace for all of America in the past half-decade, growing by 24.4 percent. No other market increased its population by more than 21.2 percent between 2002 and 2007.
Bizjournals analyzed five years of demographic and economic data for the nation's 100 largest metropolitan areas, looking for markets that have been experiencing strong, steady growth.
The study focused on changes in four key indicators — population, private sector employment, per capita income and gross metropolitan product.
Bizjournals calculated growth rates for five different time spans within each category, seeking to detect both long- and short-range trends. The spans ranged in length from five years to a single year, all ending in the most recent year for which official statistics were available.
These were the top performers in each category:
· Population: Cape Coral-Fort Myers was the long-range winner, enjoying the strongest population growth over the three lengthiest time spans. Raleigh was powerful over the short haul, posting the fastest growth rates for intervals of two years (2005-07) and one year (2006-07).
· Private sector employment: The unlikely leader for job growth over periods of five and four years was McAllen-Edinburg, Texas, an area of extensive poverty along the Mexican border. Raleigh was the best for three and two years, New Orleans for one year.
· Per capita income: New Orleans scored a clean sweep, registering the fastest rates of income growth for all five time spans. The devastation wrought by Hurricanes Katrina and Rita in 2005 actually increased the per capita income in New Orleans, as tens of thousands of poor people fled the area and never moved back.
· Gross metropolitan product: Baton Rouge, La., was the leader for three different intervals (five, three and two years) in this category, which measured growth in the output of goods and services. The other top markets were Las Vegas for a four-year period and Wichita, Kans., for one year.
Joining Las Vegas, Raleigh, and Cape Coral-Fort Myers in the top 10 of bizjournals' overall standings are Austin; Phoenix; McAllen-Edinburg, Texas; Houston; Salt Lake City; Wichita; and Charlotte. All would appear to be well situated to confront the recessionary challenges ahead.
Population growth between 2002 and 2007 in these 10 growth centers was 16.2 percent, coupled with an increase of 16.6 percent in private-sector employment. The averages for all 100 metros in the study group were 6.3 percent and 7.6 percent, respectively.
Two states dominate the bottom of the rankings. Five markets from Ohio and two from Michigan have the worst growth records in America, an unfortunate foreshadowing of the economic problems they may face in the coming year.
Both states are in the midst of protracted slumps triggered by the decline of their automaking and heavy manufacturing sectors.
Those problems are especially acute in last-place Detroit, which lost 119,500 private sector jobs from 2002 to 2007. Its gross metropolitan product grew by just 8.8 percent over the same five years, roughly one-quarter the national growth rate of 31.8 percent.
Grand Rapids, sixth-worst in the overall standings, is the other Michigan entry at the tail end of bizjournals' list. The five Ohio markets in the bottom seven are Toledo, Youngstown, Dayton, Cleveland and Akron.

Countrywides Rates Sheet

"RATE DROP ALERT!!!" - THURSDAY DECEMBER 4
The Treasury Department is considering a plan to drive down mortgage rates as low as 4.5% for a 30 yr fixed. This would be the lowest interest rates SINCE THE 1960's!!!
If this happens or not, rates have dropped further. This is the lowest they have been in 2008.
Has there been a better time to buy a home in the last 10 years?? Or to refinance one if you can??
CONFORMING 30 YR FIXED (does not include adjustments for lower credit scores)
4.625 - 2.500 points
4.750 - 1.875 points
4.875 - .875 points
5.000 - .250 points
5.250 - 0.000 points
FHA / VA
4.875 - 2.375 points
5.000 - 1.500 points
5.125 - 1.375 points
5.375- 1.000 points
5.625 - 0.000 points
Now is a great time to LOCK!!

Initial Effects of the Federal Bailout Program

Dulcie@DulcieCrawford.com (Dulcie) — Thu, 13 Nov 2008 00:34:00 +0000

The market is seeing transition as the Federal Bail Out program begins to trickle in to the many sectors of the credit and housing economy.

I have personally seen a trend from the mortgage note holders on my short sale listings to start to pull back from approving short sale transactions. Instead now they are approving loan modifications which were initially turned down the first time the homeowner/seller called the Home Retention Department for assistance in a loan modification. This is a frustrating experience for me as a Listing Agent, as I end up losing listings that I have managed to market and get viable offers for. This of course depends on the lender with whom we are dealing with, some lenders are still co-operating with us towards a successful short sale transaction. This new trend for short sales is beginning to show that they will not be the 1st priority of the lender/mortgage note holder until they have exhausted the new options of the Loan Modification departments that now have federal subsidies to buy down the original mortgage note to what the actual current appraised value is, which is an incredible deal for the financially strapped homeowner.

I have one client that was nine months behind on their mortgage, was initially turned down for loan modification. We had several viable short sale offers in to the bank for approval and the seller tried one last time to see if the new bailout program gave them a second chance. They have been given the wonderful news that they have been accepted to have the loan modified and the original note amount reduced to current appraised value. This family deserved this, I was happy to hear the news, despite my losing a transaction. They truly loved their home and tried desperately to keep it despite their worsening financial conditions.

The upside of this is that I see that the government’s recent actions to promote stimulus for the mortgage lenders to negotiate with homeowners to retain properties in default or that are likely to go into default has begun to work and move in the right direction. I feel that the inventory of short-sale and foreclosure properties will be coming to an end. This new housing trend is something I look forward to in the near future. As a professional Realtor dealing with the banks and mortgage lenders on these financial issues it is a time consuming and sometimes challenging process.

I have included below the Interest Rate update report from my preferred lender Aaron Gordon at Countrywide Home Loans. This last Wednesday we again saw a large drop in the interest rates to 5.75% with one point paid to the lender; an incredible deal in this market when home prices are at historic lows. To be able to buy during the perfect storm of low rates and low home prices is one that I know will not last forever. I recommend that buyers that have been on the fence to buy, take the time to get online and keep updated of the market conditions so that they can take advantage of the incredibly priced deals available today. If we all had crystal balls we would have known exactly when the last market upswing was going to peak, but we don’t and so looking back we should learn that even the media is usually late to report when the market conditions have changed, usually the news is late to report on average six to eight months.

Morgan Stanley just announced this week to its international investors that it was time to get back into the stock market again. It is a New Year coming and a whole new government will take over on January 20th, 2009. I feel a new optimism for the coming year. I just purchased a bank owned home that I feel was a super steal for the quality of home that I was getting. The home I purchased was selling for $850K in 2004, and I bought it for $529K including closing costs that included rate buy down and money for repairs as well. I invested in new carpet, paint and appliances; and my appraisal came in at $590K at close of cscrow. I feel that the home is worth $650K already due to the rehabilitated condition. I made this investment NOW as I believe the time is right to invest again and that I will not be saying to myself next year that I wish I had, but I am glad I did!

I again will adjust my business to adapt to the changes of this evolving market, and continue to keep myself updated and educated on the changes still to come, so that I can serve my clients the way they deserve to be represented.

Please feel free to call and discuss any questions you may have with me. I always appreciate any referrals you have for buyers and sellers that need professional assistance in the Las Vegas and Henderson Real Estate Market.

I also have a new Website dedicated to understanding the Foreclosure Market, please visit or refer it to anyone that is in need of clarification of this complicated Foreclosure Market. http://www.understandingforeclosureslasvegas.com

Gordon Team - Weekend Rate Report – November 7, 2008
"INTEREST RATE DROP ALERT!"

Here we go again!! Rates have come down substantially since Monday.
CONFORMING 30 YR FIXED RATE
5.500% with 2 points
5.625% with 1.5 points
5.750% with 1 point
5.875% with .250 points
6.000% with no points

FHA / VA - 30 YR FIXED
5.500% with 2 points
5.750% with 1.5 points
5.875% with 1 point
6.000% with .250 points
6.125% with no points

NOW is a great time to lock or shop around for a better rate!! Let's hope they stay this way for a while but don't chance it. LOCK TODAY!!

WEEKLY RATE REPORT:
Rates are down from last week. Consumer spending is down and we are facing a weaker job market. This made rates go down. However, don’t plan on them staying that way long. Lenders are tightening lending standards due to a soft economy and record foreclosures. The risks are rising. When risk increases, the price of money reflects the risks. A recent survey of senior loan officers found that about 70% of banks raised their lending standards for prime mortgages. About 90% of banks that offer nontraditional mortgages raised theirs too. Find a rate you like and lock!!

NEW GUIDELINE ANNOUNCEMENTS THIS WEEK:
Construction loans are back in soft markets like Las Vegas. If you have a client who bought a lot but could not secure financing, he can now get a construction loan to finish his dream home. This is great news. Since this is a specialized product, it may not help your business directly. However, it’s one of the more risky loans there is. Bringing it back is a great sign. It shows a measure of lending confidence coming back to our market.

TIP OF THE WEEK:
Escrow Holdbacks Allowed for Repairs and Improvements on Bank-Owned Properties You can now do escrow holdbacks on existing Countrywide REO properties when using conforming loans programs (not including FHA) and a Countrywide loan officer. These holdbacks are allowed in financing of Countrywide-owned properties purchased at either an REO auction or non-auction sale where there is a certain amount of rehabilitation work needed. An escrow holdback is a portion of a loan held in escrow until an additional requirement, usually repairs or unfinished work, is completed. The loan may close and the borrower may occupy the home while incidental work is in progress. Common examples of improvements that may involve holdbacks include exterior painting or flooring, where the property is livable. The cost to make repairs or rehabilitation is placed in an escrow holdback account, along with reserve funds (20% of the repair budget) to ensure completion of work. In all cases, the property must be habitable or livable, and the 20% reserves are required to be escrowed along with the cost to complete.

Detached SFRs only (no PUDs)
Owner-occupied only
Conforming conventional programs only
Purchase transactions only for Countrywide REO properties
New and existing construction allowed
Maximum 95% LTV Allowed
Mortgage Insurance is required on loans over 80 LTV
Full appraisal required
Property does not need to be purchased at an auction
The property must be livable and must have evidence of working utilities, bathrooms, etc.
Items such as paint, floor coverings or minor wall damage does not affect livability
Health or Safety Hazards Escrow Holdbacks are NOT allowed for properties with Health or Safety Hazards
Minimum Escrow Withhold Amount 120% of the total estimated cost to complete the required work must be held in escrow
Completion of Work Must be accomplished within 120 days from the loan closing