Las Vegas Luxury Properties Link

We're number 1, we're number 1....in up-side-down mortgages. Again, not the thing you really want to be leading the nation with, but that's our market right now.  There is a great report just released from First American CoreLogic on the Fourth Quarter housing statistics.  Over 11.3 million mortgages are under water.  Nevada seems to be the epicenter of the housing meltdown, even though prices have stabilized, the numbers are surprising. Here's an excerpt from the report:

 Negative equity continues to be concentrated in five states: Nevada, which had the highest percentage negative equity with 70 percent of all of its mortgaged properties underwater, followed by Arizona (51 percent), Florida (48 percent), Michigan (39 percent) and California (35 percent). Among the top five states, the average negative equity share was 42 percent, compared to 15 percent for the remaining 45 states. In numerical terms, California (2.4 million) and Florida (2.2 million) had the largest number of negative equity mortgages accounting for 4.6million, or 41 percent, of all negative equity loans.

The blog "Calculated Risk Blog" reported:

These homeowners are far more likely to default.

The rise in negative equity is closely tied to increases in pre‐foreclosure activity and is a major factor in changing homeowners' default behavior. Once negative equity exceeds 25 percent, or the mortgage balance is $70,000 higher than the current property values, owners begin to default with the same propensity as investors.

 Here is figure 4 from the report.

The default rate increases sharply for homeowners with more than 20% negative equity.

This graph fits with figure 2 above and suggests a large number of future defaults in Nevada, Arizona, Florida and California.

The aggregate dollar value of negative equity was $801 billion, up $55 billion from $746 billion in Q3 2009. The average negative equity for an underwater borrower in Q4 was ‐$70,700, up from ‐$69,700 in Q3 2009. The segment of borrowers that are 25 percent or more in negative equity account for over $660 billion in aggregate negative equity.

Because Nevada is SO upside down, loan modification programs, and short sales have taken over our market.  Out of the 10,135 Single Family Homes, Townhouses, and Condos that are currently available on the multiple listing service in Las Vegas/Henderson, 4900 are short sales, and 1550 are foreclosures or bank owned properties.    Banks are now on board the short sale wagon.  They want to work with sellers to avoid foreclosure.  Bank of America, one of the most notorious banks in the short sale world, is the first large bank to sign on for the Second Lein Holders program-H.A.M.P. (Housing Affordable Modification Program).  If you'd like more information regarding a loan modification, please visit Making Home Afforable.   These programs also facilitate the short sale process.  Some of these programs do seem to be making a difference.  Short sale closings have increased to 22% of all home sales in January 2010.

If you would like a FREE, confidential short sale consultation, please give me a call toll free at 1-866-589-1646.  We're here to help you avoid foreclosure, get a loan modification, or assist you to short sale your home.  Certified Short Sale Professional and Certified Distressed Property Experts handle every aspect of your short sale.

Felipe Crook

Prudential Americana Group Realtors

Las Vegas, NV 89117

1-866-589-1646

I recently was able to help a client remove a federal tax lien from her property so we could short sell it.  Ok, if that's a lot of confusing terms, let's start with Short Sale.   A Short Sale is when a seller is trying to sell a property for less that what is owed on the property.  The bank who holds the mortgage has to approve the sale of the property in order for title to change names into the new buyers name. You can read even more about Short Sale by visiting my posts at http://www.LasVegasShortSaleConnection.com. I'm not quite sure why they call this type of transaction a short sale, because it typically takes a lot longer than a traditional transaction.   Bank have been so inundated with short sales, that they do not have the staff to cope with the thousands and thousands of short sale packages they are receiving each and everyday.  Having said that, the process is getting better and is becoming more streamlined.  I have a current buyer who got an approval on his offer in 30 days!! That's remarkable compared to the 200 day waits other clients have seen.

Anyway, in a short sale, the bank pays all of the real estate commission which is a question I hear all the time.  The bank will decide on the commission amount, the amount of closing cost it will consider for the new buyer, and all of the fee that you would normally see on a settlement statement.  The sellers DO NOT pay real estate commission.  If you have a federal tax lien on the property, all liens must be removed or discharge before clear title can be conveyed to the new buyer.  One of my clients recently had a tax lien and she was FREAKING out that the short sale processed was ruined.  After some carefully investigating on the IRS website and a few phone calls, I was able to find out how to discharge the lien in order to sell the home.  Here's a list of what they require:

First of all, there is no form to fill out. It's simply a letter typed out with certain verbiage and I would list each item in the package you're sending:

• Description of the property (Full Address) requesting the lien removal
• Show when the owner will be divested of all rights (The approval letter from the bank.  Sometimes the bank won't issue the release until the lien is discharge, but the IRS won't discharge until the bank approves the short sale.  That was an interesting hurdle to cross, but the IRS was shockingly helpful. GO IRS!!)
• A full copy of the lien OR a Pre-Liminary Title Report (Your Realtor should be able to provide this to you)
• A list of encumbrances OR a Pre-Liminary Title Report (Your Realtor should provide this or he's doing a bad job)
• A estimated HUD-1 showing all expenses of the property.
• An Appraisal of the property or two Broker Price Opinion from two disinterested parties qualified to give an opinion of value (I was able to use the bank's appraisal of the property instead of getting a comparative market analysis from colleagues of mine.)
• Your Full name, address, phone numbers and contact information where you can be reached.
• If you have an attorney, provide his contact information
• You must also copy a perjury statement VERBATUM and sign the letter.
• Also, you will need to get your escrow officer handling your short sale to sign an Tax Information Authorization.  Make sure you specifically name your escrow officer and not the entire title company.  That form is 8821 and can be downloaded from this link.

The full instructions available from the IRS.gov website is available by visiting this link:

Certificate of Discharge of Property from Federal Tax Lien

Now, all of this sounds like a lot of work, but actually your realtor will need to gather most of this documentation anyway.  Now, once you send it to the appropriate Tax office, (make sure you send it by certified or overnight mail so you can track the package) they will contact your escrow officer and start the process.  The have a total of 30 days to issue a letter of discharge.  When I sent my client's package overnight on a Monday, the package was received on Tuesday.  They called my escrow officer in TWO DAYS!! I was shocked.  After sending the IRS email statements from my client's lender, they issued a letter of discharge for the lien in one week.  I was absolutely, pleasantly surprised.   That was the easiest part of the short sale process.   It is definitely worth doing if you're serious about short selling your home.  If you'd like to discuss your options for your home, please contact me toll free at 1-866-589-1646 or email me at felipe@felipecrook.com.

Felipe Crook

Prudential Americana Group Realtors

Las Vegas NV 89117

1-866-589-1646

As the housing market continues its slow economic recovery, properties in Las Vegas are selling quickly.   In fact, they are selling so quickly and with multiple offers that the tables are starting to turn more to a seller's market.   What?!?! Let me clarify this for you.  In my opinion, a seller's market happens when the amount of housing inventory is low and the amount of buyers is higher.  When a seller gets to choose between 5 to 10 different offers, that is a seller's market.  When buyers can't ask for as many concession such as closing costs, that is a seller's market.  Now, prices haven't been this good in Las Vegas in YEARS, so in that respect it's a great time to buy.   What I have been incorporating with my clients is looking at brand new homes.   I'm shocked that builders are still building anything, but what I'm finding right now are some really well price new homes.  Many of my clients are opting for this route to home ownership.  No hassles with the banks and multiple offers, the property condition is fantastic, the builder is offering a bumper to bumper warranty for the first year, and in most cases a 10 year structural warranty, AND in many cases you can still customize the home to your tastes.  Granted, you aren't going to get rock bottom prices, but the benefits out weigh a lot of the hassles.  Here are the stats for our local market:

October Home Sales in Las Vegas and Henderson:

• 4328 Properties close in October.
• 688  were Short Sales or nearly 16%
• 2793 were bank owned properties or 64%
• 843 were traditional sellers or 20%

Foreclosures continue to mount as our unemployment rises.  Below is a graph of the most active foreclosure zip codes in Las Vegas:

There are wonderful deals still available in Las Vegas and now that the tax credit has been extended and expanded to existing home owners, PLUS historically low interest rates, now is the time to buy in Las Vegas.  If you'd like to start your own FREE search for properties, start below.  You can also get notified of any new properties that come on the market, and save your favorites too.   If you would like to discuss your real estate needs, please call me toll free at 1-866-589-1646.

Felipe Crook Prudential Americana Group Realtors Las Vegas NV 89117

Who Qualifies for the Extended Credit?

• First-time home buyers who purchase homes between November 7, 2009 and April 30, 2010.
• Current home owners purchasing a home between November 7, 2009 and April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight.

To qualify as a "first-time home buyer" the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.

If you or your client purchased a home between January 1, 2009 and November 6, 2009, please see: 2009 First-Time Home Buyer Tax Credit.

Which Properties Are Eligible?

The Extended Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.

How Much Is Available?

The maximum allowable credit for first-time home buyers is $8,000.

The maximum allowable credit for current homeowners is $6,500.

How is a Buyer's Credit Amount Determined?

Each home buyer's tax credit is determined by tow additional factors:

1. The price of the home.
2. The buyer's income.

Price

Under the Extended Home Buyer Tax Credit, credit may only be awarded on homes purchased for $800,000 or less.

Buyer Income

Under the Extended Home Buyer Tax Credit, which is effective on November 7, 2009,  single buyers with incomes up to $125,000 and married couples with incomes up to $225,000-may receive the maximum tax credit.

These income limits have changed from the 2009 First-Time Home Buyer Tax Credit limits. If you or your client purchased a home between January 1, 2009 and November 6, 2009, please see 2009 First-Time Home Buyer Tax Credit.

If the Buyer(s)' Income Exceeds These Limits, Can He/She Still Get a Credit?

Yes, some buyers may still be eligible for the credit.

The credit decreases for buyers who earn between $125,000 and $145,000 for single buyers and between $225,000 and $245,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income-over $145,000 for singles and over $245,000 for couples are not eligible for the credit.

Can a Buyer Still Qualify If He/She Closes After April 30, 2010?

Under the Extended Home Buyer Tax Credit, as long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close.

Will the Tax Credit Need to Be Repaid?

No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during this three-year period, the full amount credit will be recouped on the sale.

 If you would like to invest in property in Las Vegas or Henderson, please contact me directly at 1-866-589-1646.  Happy House Hunting!

Felipe Crook

Prudential Americana Group Realtors

Las Vegas NV 89117

The Ridges is a spectacular custom home community nestled against the picturesque beauty of Red Rock National Park on the west side of Las Vegas.  In 2004 Forbes named The Ridges as the third most exclusive guard gated communities in the Country and as you drive into this stunning community, you can see why. The contemporary architecture coupled with stunning views of the Spring mountain range plus the famous Las Vegas strip make these custom properties incredibly desirable.

One feature I notice as I drive through the community is how well this community blends in with the natural vegetation of the desert (minus the great big patches of golf course).  The custom lots in this area are secluded by long driveways which give a great amount of privacy.  There are also semi-custom homes in Boulder Ridge by Christopher homes.  The models of these homes are incredible ranging from 4000 sq ft up to 6000+sq ft. The attention to detail is superb and the views are breath taking. 

The Ridges Amenities:

• 24 Hour Guard Gated Entrance
• Jack Nicklaus Designed Golf Course
• State of the art fitness center
• Swimming pool and spa
  
• Private Residents only clubhouse
• Walking trails and parks

There are distinct neighborhoods in The Ridges which include Arrowhead, Promotory, Redhawk, Rimrock, Azure, Falcon Ridge, and The Pointe.  The builders in The Ridges include some of the best know developers in the city which include:

Below are some of the current homes available in The Ridges.  If you'd like more information about this custom community, please contact Felipe Crook at 1-866-589-1646.