Reno Sparks Real Estate Today

Clocks Aren't The Only Thing You Should Change This Weekend

2010-03-12T11:26:27-08:00

Don’t forget to “spring” your clocks forward one hour this weekend. The official time to set your clock forward is 2:00 am Sunday morning March 14^th. Did you know daylight savings time began in 1918? The original goal was to reduce the usage of incandescent lighting, a primary use of electricity at the time. Read more about day light savings time here.

Daylight savings time is a great reminder to take care of some home maintenance items. Chances are your furnace has been working hard all winter to keep you warm and comfortable. Now is a good time to change the filter and think about having your A/C serviced so it is ready for those hot summer days that are right around the corner. You should test and change the batteries in your smoke detectors at least once a year. Many suggest twice a year. Make daylight savings time your “built-in” reminder.

Save Money On Your Power Bill With Time Of Use Program

2010-03-07T16:12:09-08:00

You see those water tanks around town and in the foothills? Ever wonder what they are for? Power rates are cheaper at “off peek” times when people are not using as much power. This is usually the middle of the night. Instead of running water pumps all day to provide water when power is more expensive, water is pumped into those water tanks in the middle of the night. During the day water is delivered via gravity from those tanks to your home. This saves power and is more efficient.

Now you save money on your power bill in a similar fashion by using cheaper power during off peak hours (see chart.) NV Energy has started a time-of-use savings program. You can sign up and get more info at www.NVEnergy.com/tou

Most modern dishwashers have a delayed start feature. Wash those dishes during off peak hours. Start the clothes washer and dryer later in the evening. Need to charge those boat or RV batteries? Charge them overnight.

Fed proposed Homestar program gives homeowners incentive for energy efficiency.

2010-03-05T13:56:24-08:00

The government released more details on the proposed “Homestar Energy Effiency Retrofit Program.” Here are some of the details.

· Rebates delivered directly to consumers: Like the Cash for Clunkers program, consumers would be eligible for direct HOMESTAR rebates at the point of sale for a variety of energy-saving investments in their homes. A broad array of vendors, from small independent building material dealers, large national home improvement chains, energy efficiency installation professionals and utility energy efficiency programs (including rural utilities) would market the rebates, provide them directly to consumers and then be reimbursed by the federal government.

· $1,000 - $1,500 Silver Star Rebates: Consumers looking to have simple upgrades performed in their homes would be eligible for 50% rebates up to $1,000 - $1,500 for doing any of a straightforward set of upgrades, including: insulation, duct sealing, water heaters, HVAC units, windows, roofing and doors. Under Silver Star, consumers can chose a combination of upgrades for rebates up to a maximum of $3,000 per home. Rebates would be limited to the most energy efficient categories of upgrades—focusing on products made primarily in the United States and installed by certified contractors.

· $3000 Gold Star Rebates: Consumers interested in more comprehensive energy retrofits would be eligible for a $3,000 rebate for a whole home energy audit and subsequent retrofit tailored to achieve a 20% energy savings in their homes. Consumers could receive additional rebate amounts for energy savings in excess of 20%. Gold Star would build on existing whole home retrofit programs, like EPA’s successful Home Performance with Energy Star program.

· Oversight to Ensure Quality Installations: The program would require that contractors be certified to perform efficiency installations. Independent quality assurance providers would conduct field audits after work is completed to ensure proper installation so consumers receive energy savings from their upgrades. States would oversee the implementation of quality assurance to ensure that the program was moving the industry toward more robust standards and comprehensive energy retrofit practices.

· Support for financing: The program would include support to State and local governments to provide financing options for consumers seeking to make efficiency investments in their homes. This will help ensure that consumers can afford to make these investments.

For more details, you can visit http://www.whitehouse.gov/the-press-office/fact-sheet-homestar-energy-efficiency-retrofit-program

The Beginning of the end?

2010-02-19T16:10:10-08:00

Are we seeing the signs of the beginning of the end of the real estate crisis in the Reno/Sparks area? An AP article out today titled Fewer people falling behind on home loans, suggests we might be. Today the government announced it’s throwing another 1.5 billion into the mix for the hardest hit states including Nevada. The government also announced a new program called Home Affordable Foreclosure Alternatives (HAFA) to steam line the Short Sale process.

These are good signs but we have seen all this before. The government has been coming up with bailout programs and throwing good money after bad in an attempt to try and slow down the market free fall. 1.25 trillion spent buying mortgage backed securities keeping interest rates artificially low, billions in homebuyer tax credits, and billions more in bailout packages. Mean while, prices continue to fall and home ownership rates are at the lowest levels in a decade.

Look I’m no smart politician, noble prize winning economist, or Rhodes Scholar. I am just a real estate professional of average intelligence. I have been preaching to clients, friends, family, coworkers, and anyone else that would listen (you can read archives on this blog.) The only thing that is going to turn this mess around is home prices falling to a more affordable and sustainable level. After over 4 years of declines, we are finally seeing prices at levels that are affordable and sustainable for the long term. We still have many hurdles ahead including rising interest rates, stubborn unemployment, and foreclosures still coming. These issues will keep prices at low levels for at least the remainder of this year. Could prices fall further? Yes, but not at pace we have seen over the last few years. If prices do fall, it will be mostly confined to the higher end price ranges.

Home Affordable Modification Program (HAMP) rolls out new guidelines

2010-02-01T16:43:09-08:00

The Treasury Department recently announced new guidelines that will require applicants to provide all paperwork before getting a trial modification. The new policy should make it easier for homeowners to qualify for permanent assistance under President's Obama foreclosure prevention plan, even though it makes it harder for them to start the process. Borrowers have been complaining that their loan servicers constantly ask for additional documents and lose their forms. Servicers, meanwhile, say that borrowers are not handing in all that's needed. The new rules, which start June 1, will shift the paperwork burden from the back end to the front end of the process. Distressed borrowers will have to fill out a three-page request form that asks them to explain their hardship and list their income and expenses.

They will also have to sign an IRS 4506-T form that allows servicers to pull their tax returns. Both forms are available on the Making Home Affordable program's Web site. Applicants will also have to verify their income. For those earning a salary, two recent pay stubs will be sufficient. Other earnings, such as income from self-employment, benefits, or rental properties, must still be documented. Servicers must acknowledge receipt within 10 business days and, if the file is complete, let the borrower know within 30 days if he or she is approved for the trial modification. If the documentation is incomplete, the servicer must tell the borrower what is outstanding. Those who are approved for trial adjustments and make three timely payments will be automatically converted to long-term modifications. Both servicers and housing experts applaud the move, saying that borrowers will now have a better sense of their chances for permanent help. "It will not lead to more modifications, but it will lead to more certainty," said Howard Glaser, head of The Glaser Group, a financial services analytics firm.

For more information on the HAMP program visit. http://makinghomeaffordable.gov/

FHA Lifts Flipping Rule

2010-01-18T12:00:10-08:00

This is good news for buyers, sellers, and investors in the Reno Sparks area.

The Federal Housing Administration is temporarily lifting an "anti-flipping" rule, allowing borrowers using government-insured loans to be more competitive in bidding on foreclosed properties recently purchased from banks and even the government.

The Department of Housing and Urban Development's anti-flipping policy prohibits FHA financing on purchase transactions where the seller has owned the property for only 90 days. HUD found this policy blocked potential FHA borrowers from taking advantage of quick resales of real estate owned. REO sellers, generally, are unwilling to go with FHA borrowers because of holding costs and vandalism risk during the 90-day holding period. FHA is lifting the 90-day rule for one year starting February 1. FHA borrowers have "often been shut out from buying affordable properties," said FHA commissioner David Stevens. "This action will enable our borrowers, especially first-time buyers, to take advantage of this opportunity." FHA has been burned by property flipping scandals before. This time around it insists that all sales must be arms-length transactions with no evidence of flipping in the previous 12 months. If the resale price is 20% higher than the REO sales price, the lender has to provide supporting documentation and a second appraisal in some cases.

It’s about time! I applaud the FHA for finally using some common sense. This “anti-flipping” rule was having a negative effect on everyone in the market. The majority of today’s buyers are using FHA loans to buy homes. Many investors are turning down FHA buyers due to the 90-day rule, or they have to extend the closing period to reach the 90 days, which raises holding costs. Eventually these costs get passed onto the buyer. A 90-day holding period is doing nothing but extending the transaction.

I’ve long said, to get this market cleaned up we are going to need investors. Banks are not in the real estate business; they are in the money business. They have already screwed up the money business; we need to keep them out of the real estate business. Investors are the best group to buy up foreclosed properties, fix them up, and sell them or rent them. Investors have the knowledge and local resources to get the job done quicker and more cost effectively than banks.

Is now the time to buy a house?

2010-01-11T11:39:36-08:00

Interesting story on the Today Show about the real estate market and the economy in general. Many hard hit markets are highlighted, and you can definitely include the Reno Sparks market in the conversation.

Visit msnbc.com for breaking news, world news, and news about the economy

HUD changes eligibility of buyers who previously had to short sale a home.

2010-01-04T11:37:11-08:00

If you had to do a short sale on your home and are looking to buy a new one in the future, HUD has updated eligibility guidelines.

Borrowers are eligible for a new FHA-insured mortgage if;
1. they were current on their mortgage and other installment debts at the time of short sale on their previously owned home, AND
2. the proceeds of the short sale serve as payment in full.

Borrowers are not eligible for 3 years following the date of the short sale if;
1. they were simply taking advantage of declining market conditions, AND
2. are looking to purchase, at a reduced price, a similar or superior property in same area.
3. if they were in default on their mortgage at the time of short sale.
Exceptions may be made to this rule if;
a. the default was due to circumstances beyond borrower's control (death of primary wage earner, long term uninsured illness, etc.), AND
b. review of credit report satisfactory credit prior to the circumstances that caused the default.

As always, guidelines will be made clearer as lenders introduce this announcement to their programs. We will continue to keep you updated.

For official announcement from HUD click on link below.
http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/09-52ml.pdf

Obama's HAMP program a failure

2009-12-10T10:55:00-08:00

An editorial in the Providence Journal succinctly outlines the reasons President Obama’s program to curb foreclosures appears to be failing. The Home Affordable Modification Program (HAMP) offered incentives to mortgage companies to reduce payments for struggling homeowners, but as of September only about 1,700 homeowners had passed through all the necessary hoops to win a new permanent loan modification. In the meantime, foreclosures are on the upswing and well over a million mortgages were 60 days past due in October.

HAMP was not designed to deal with one of the biggest aspects of the foreclosure problem: falling home values that leave borrowers “under water,” owing more than their houses are worth. Primarily, HAMP is aimed at reducing interest payments but not principal. Not surprisingly, underwater borrowers are not rushing to sign up, and they're not finding much help when they do. Participants in the program have to show their worthiness by completing a series of trial payments, and around 650,000 borrowers have done that. But many say they are subjected to disorganized claims for additional paperwork, and others fail to provide the necessary documents in the first place. Last year, foreclosure sales topped 1 million. This year there were fewer, thanks to loan-modification efforts and moratoriums, but the danger of a stalled HAMP is that another new wave of foreclosure sales could swamp the market, sending home prices back down and threatening the economic recovery.

Government trying to make Short Sales easier

2009-12-03T13:26:33-08:00

The Obama administration laid out final guidelines on Monday that should make it easier for some financially troubled borrowers to sell their homes. The guidelines are designed to encourage the use of short sales, and it also makes it easier for borrowers to voluntarily transfer ownership of properties through a "deed in lieu of foreclosure."

Under the plan, borrowers will receive $1,500 from the government if they sell their homes for less than the amount of their mortgages. Mortgage-servicing companies will also receive $1,000 for each completed short sale. The program is open to borrowers who may be eligible for the government's loan-modification program but don't end up qualifying, or are delinquent on their modification, or request a short sale or deed-in-lieu transaction. The short-sale program is the latest addition to the Obama administration's $75 billion foreclosure-prevention plan, which includes incentives for mortgage companies and investors to rework troubled loans.

The government first said in May that it would include short sales in the program, but it has taken months to finalize the details. Under the new guidelines, second-mortgage holders can receive up to $3,000 of the sales proceeds in exchange for releasing their liens. Investors who hold the first mortgages, meanwhile, can collect up to $1,000 from the government for allowing such payments. Borrowers who complete a short sale under the program must be "fully released" from future liability for the debt, according to the guidelines.