Should You Sell Your Las Vegas Home or Rent It?

Las Vegas Home prices have dropped throughout 2008 and the trend could continue through the fall and winter. As more and more foreclosures hit the market, banks will continue to offer these homes at prices below market value in an effort to get them off of their books.  So with that in mind, you have to determine if it’s the right time for you to sell your Las Vegas Home.

If you determine the time is right to sell because of divorce, loss of job, job relocation or any other reason, it’s important to understand the Las Vegas Real Estate Market.

Unless you purchased your home before 2003 or put a substantial amount down, it’s unlikely your home has any equity and is most likely worth less than you owe.

This means, you have two options:

1. You can pay the difference that you owe at close of escrow
2. You can attempt to sell your home as a short sale

You have the option of selling your home and paying the difference at close of escrow but that amount could be substantial!  Not only do you have to factor in the difference between the offer amount and what you owe but also have to include real estate commissions, closing costs and taxes.

Selling your home as a short sale is not guaranteed!  A short sale is when your lender agrees to accept an offer for the purchase of your home at a price less than what is currently owed.  A short sale usually requires some type of hardship like divorce, loss of job or job transfer.  A short sale package has to be completed and submitted to your lender for approval and this can take anywhere from 3 weeks to 16 weeks!  Having an experienced Las Vegas Real Estate Agent that specializes in Las Vegas Short Sales is a must if you decide to sell your home as a short sale.

If you can afford to hold off on selling your Las Vegas Home in this market, I highly recommend it!  The Las Vegas Rental Market is doing very well and you have a greater chance of renting your home than selling.  Having an experienced Las Vegas Property Management firm representing you is important.  With so many homeowners losing their home to foreclosure, they are being forced into the rental market.  Completing a credit check is very important to determine the potential credit risk of your tenants.

Obviously your situation will play a key decision on whether you can afford to rent your Las Vegas Home instead of selling it in this real estate market.

Feel free to contact us at 702.376.0088 to discuss your situation.

Facing Foreclosure in Las Vegas?

Are you having a hard time making your payments on your Las Vegas Home because your interest rate adjusted causing your payment to increase hundreds of dollars a month? You’re not alone as many Las Vegas Homeowners are facing the same dilemma. Instead of letting your home foreclose you have a few options.

1. Contact your lender and see if you can adjust your payment.
2. Refinance – New FHA Guidelines allow you to refinance your house up to 90% LTV (loan-to-value) on current market value.
3. Short Sale.

You can contact your lender to see if they will lower you payment but the chances of them lowering it any substantial amount is slim. From what I have heard from my clients, they usually will lower the payment by $100 to $200 a month.

FHA has just updated their guidelines which will take effect on October 1st, 2008.  So if you are interested in this refinance option, you will have to wait till October 1st!

Your best option might be attempting to sell your Las Vegas Home as a short sale. A Short Sale is a special transaction that allows you to sell your home – even when your mortgage debt is higher then the value of your home. Lenders are motivated to approve short payoffs if it makes sense.  The foreclosure process for a lender is very costly, takes a long time, and exposes the property to vandalism, deterioration, and declining market values.

If you have never been late on your payments and have a true financial hardship or compelling reason to sell your home (relocation, loss of job, hospitalization, divorce) the bank will still consider a short sale of your property. YOU DO NOT HAVE TO BE LATE ON YOUR PAYMENTS TO SELL YOUR HOME AS A SHORT SALE!

We will need to present to the bank a short sale package. Most banks request the same documentation, yet there are some that may require their own forms filled out and different actions. We will provide you with a package to fill out complete with a check list of documents needed.

Typically short sales can take anywhere from 45 business days to 120 days to complete from the time the offer is received. Contrary to popular belief, short sales are any thing but short in time. The true name is a short payoff when the lender is taking less than the full balance of the loan.

If you are interested in selling your home as a short sale or have questions about the short sale process, feel free to contact us any time at (702) 376-0088.

With home prices declining all across the Las Vegas Valley, it makes it very difficult to sell your home, especially if you don’t have any equity.  Instead of selling your home, what about renting your home?  The Las Vegas Rental Market is doing very well right now with so many Las Vegas residents looking to rent due to the loss of their own home.  So instead of trying to sell your home in this down market, why not rent it out and just sit and wait until the Las Vegas Real Estate Market rebounds?

If you are going to rent out your home, I highly suggest using a Las Vegas Property Management Company to handle the whole process so all you have to do is deposit your check every month.  You could do it on your own but managing a rental takes a lot of work and you can expect to receive phone calls at all times of the day from a tenant with something that needs to be fixed.

If you are looking for a property manager, contact Tony Sena at 702.376.7379

Las Vegas living is just as exciting as visiting. If you enjoy living in the fast lane, Las Vegas is the place for you. With any kind of entertainment that you could ask for, this is a great place to call home.  The Las Vegas Strip is not only a place to play but a great place to work.

With many job opportunities in the near future with the opening of Encore, Project City Center and the M Resort to name a few, it’s time to make a move.

Las Vegas Home prices are at lows we haven’t seen since 2003 and 2004, interest rates are still at all time lows and the abundant amount of foreclosures makes this a dream market for any buyer looking to relocate to Las Vegas.

There are homes available of all sizes and in all price ranges, with many luxeries included. These luxeries may include swimming pools, hot tubs, jetted bathtubs, and so much more. If you are looking for a nice place to live, and the perfect climate, Vegas is the hot spot. The community has grown in recent years, and the real estate market will also continue to grow throughout the years.

In response to the new “HOPE for Home Owners Act” (HR 3221) that was recently passed by the House of Representatives, FHA announced new Mortgage Insurance Premiums starting October 1, 2008 through September 30th, 2009.

Up-front Mortgage Insurance Premiums:

• Purchase Money Mortgages and Refinances = 1.75%
• Streamline Refinances (all types) = 1.5%
• FHA Secure (Delinquent Mortgagors) = 3%

Monthly Mortgage Insurance Premiums:

• 30 yr mtg. –  LTV > 95%, monthly will be @ .55%
• 30 yr mtg. –  LTV < 95%, monthly will be @ .50%
• 15 yr mtg. –  LTV > 90%, monthly will be @ .25%
• 15 yr mtg. –  LTV < 90%, monthly will not be required.
• FHASecure – LTV > 95%, monthly will be @ .55%
• FHASecure – LTV < 95%, monthly will be @ .50%

* This information was provided by Jeff Mifsud @ FHAGamePlan.com

The District at Green Valley Ranch is quickly becoming one of the hottest spots in the valley to shop, dine, gamble, and even live! With over 40 magnificent stores to choose from, and 15 different restaurants, this charming “Main Street” offers something for everyone!

Conveniently located next to Green Valley Ranch Station Casino, The District at Green Valley Ranch is a favorite among tourists and locals alike.

Along with some of the finest shopping and dining in Nevada, you can also enjoy live music every Friday and Saturday night from 6pm-10pm.

If you like to live where you play, The District at Green Valley Ranch is the place for you.  The lofts start at $300K for a 1 bedroom, 871 square foot unit to $1.4 million for a 3 bedroom, 1747 square foot unit.  Amenities include private underground parking, concierge services, work out facilities, meeting room with kitchen, roof top Jacuzzi and so much more.

For a private showing or for more information, please contact us today at 702.376.0088

Henderson, Nevada is the 2nd largest city in the State of Nevada and is located in Clark County.  Henderson has some of the most desired real estate in the Las Vegas Valley because of communities like Lake Las Vegas, Anthem Country Club, Roma Hills and MacDonald Highlands to name a few.  With numerous award winning golf courses, out door shopping and Casinos like Green Valley Ranch, Henderson is a place many would like to call home.

Obviously not everyone can afford to live in communities like Lake Las Vegas, Anthem Country Club and MacDonald Highlands but don’t worry there are many neighborhoods in Henderson that are affordable such as Green Valley Ranch, Seven Hills, Anthem, Tuscany, and Palm Hills to name a few.  Many of these communities have homes starting in the mid $200s.  If you like shopping, The District offers out door shopping, restaraunts and a place to hang out.

Henderson is known for it’s parks, walking trails and communities.  Many of the parks have play areas for kids, water areas and baseball fields.  Those that enjoy walking, running or biking, you can find trails all throughout the Henderson area.  There are also numerous community centers that offer swimming, classes, basketball and so much more.

If you interested in learning more about Henderson, Nevada feel free to contact us at 702.376.0088.

Meeting with a loan officer for the first time can be a quick and painless experience if you are prepared.

The following is a list of the general borrower information and conditions that need to be presented at the time of the initial mortgage application process for a full approval:

Personal Information

1. Full Name
2. Date of Birth
3. Social Security Number
4. 2 Yrs Residence History – monthly payment, rent or own, payment method
5. List of all Real Estate Owned – values, balances, monthly payments, taxes, and insurance
6. 2 Yrs Employment History – job title, yrs in industry, income / structure, contact information

Subject Property Information

1. Type of property purchasing – Condo, Single Family Residence, Las Vegas High Rise, New Construction, Re-sell
2. Residence Status – Primary, Second Home, Investment Property
3. Budgeted Down Payment
4. Budgeted Monthly Payment
5. Desired Program Type – Fixed, ARM, Negative Amortization, Reverse Mortgage
6. Names to be listed or left off of title
7. Estimated time in property
8. Goals with property

Conditions

1. Most recent 2 pay stubs
2. Most recent 2 Yrs. W2’s
3. Most recent 2 Yrs. Tax Returns
4. Most recent 2 Bank Statements, 401k, Mutual Fund, or other Investment Accounts

The application process is a time where your loan officer can help you structure the best mortgage plan of action that will fit with your long and short term financial goals.

Will the new federal housing bill help the Las Vegas Real Estate Market?  Without a doubt!  The federal housing bill should stop future foreclosures, stabilize home prices, encourage a wave of more home buyers and reduce the housing inventory.

The federal housing bill will allow distressed homeowners who might be facing an eminent foreclosure to refinance out of their existing mortgage and into more attractive terms.  According to the bill, financially distressed homeowners have the opportunity to reduce their mortgages to 90 percent of their home’s current appraised value. The newly created mortgage will be a 30-year fixed FHA loan at the prevailing interest rate.  In exchange for refinancing, the homeowner agrees to share a substantial portion of any future appreciation with the original lender and the FHA.

So this gives a homeowner two choices.  They could either go through with foreclosure and destroy their credit or refinance their home at 90% of the appraised value and share any future appreciation with the original lender and the FHA.  I think this is an easy choice, don’t you?

The Federal Housing Bill will reduce the amount of future foreclosures on the market, which is significant.  This means the current housing inventory will decrease at a quicker rate and home prices should stabilize because of the decline in inventory.  We have had 6 straight months of increased home sales and it has been making a small dent in the standing inventory because of the increase in foreclosures.  So with foreclosures decreasing because of the new bill, we should see a decrease in the inventory over the next 8 to 10 months.  With the decrease in inventory comes with the stabilization of home prices.  Home prices should start to level out over the same period.

I think this bill was exactly what we needed to help the Las Vegas Real Estate Market which will ultimately have a positive effect on the Las Vegas Economy.

Home prices in Las Vegas dropped 29.5 percent in May compared to a year ago.  This decline can be attributed to the abundant amount of foreclosures that are flooding the Las Vegas Real Estate Market.  Banks and Lenders are lowering prices to move these homes which is affecting home values all across the Las Vegas Valley.

First time home buyers, investors and those looking to buy 2nd homes are finding incredible opportunities.   A friend of mine is looking to rent a home and they forwarded me a property that was for rent and asked me to find out when it was purchased.  After doing a little research, this 3000 square foot house sold in December 2006 for $610K and just recently sold in May 2008 for $300K.  Talk about a great deal!  This one story, 3 car garage, 3000 square foot house sold for almost 50 percent less in less than 2 years.

What this means for buyers:

1. Excellent opportunity to find an affordable home.
2. More home for their money.
3. Banks/Lenders are paying your closing costs.
4. Interest Rates are still at all time lows.

Sellers are not in a very good situation right now and should avoid selling if they can and attempt to wait until home prices in the Las Vegas Valley begin to rise.  The rental market is doing very well right now and sellers should look at renting their home as a viable option before selling.  If you cannot wait and have some type of hardship, (divorce, loss of job, pay cut, etc…) you could always look into selling your Las Vegas home as a short sale.

What this means for sellers:

1. Banks/Lenders are driving down the values in neighborhoods.
2. Probably will owe more than the home is worth.
3. Hold off on selling if you can afford to wait for home prices to rebound.

If you are looking to buy or sell in Las Vegas, don’t hesitate to contact Sena & Associates for all your Las Vegas Real Estate needs at 702.376.0088.

Can you believe we finally got our Las Vegas short sale offer approved by the bank!  This just goes to show you that as long as the offer is reasonable, meaning within reach of the fair market value, the banks will approve the deal.  My client and I made the offer approximately 3 and half weeks ago and I received the phone call early yesterday indicating a full acceptance!  We are due to close on the property in two weeks.

There was an article that was recently published in the Las Vegas Review Journal that indicated only 30% of short sales actually close.  Some short sales can take up to 6 months before you finally get a response back from the bank or lender and by that time it is too late for the seller as the home will be only days away from foreclosure.  I try to forewarn all my clients that are interested in purchasing a short sale to be patient as it will take some time for an answer. Wish us luck!

What exactly IS a Las Vegas Reverse Mortgage?

A reverse mortgage is a loan that enables homeowners who are 62 years of age or older to access the equity in their homes as tax free income without having to sell the home, give up title or take on a new monthly mortgage payment.

With a regular mortgage, money is borrowed to purchase the home and payments are made.  The difference between what you borrowed and the market value of the property is your equity.  As time goes on, the payments reduce the amount borrowed and hence, the equity enlarges.  A bonus is also the appreciation in value of the property over time which also contributes to your equity stake.

A reverse mortgage works in the opposite direction.  You use the equity in your home to receive cash, either as a lump sum, a line of credit, monthly amounts, or a combination of all three.  As time rolls on, the payments to you increase the loan amount and your equity in the home decreases

How do I qualify for a Reverse Mortgage?

• You must be 62 years of age or older and have equity in your Las Vegas Home.

How is my benefit amount calculated?

• The amount you can borrow depends on your age, the current interest rate, and the appraised value of your home or FHA’s mortgage limits for your area, whichever is less. Generally, the more valuable your home is, the older you are, the lower the interest, the more you can borrow.

What properties qualify for Reverse Mortgages?

• Most property types are eligible for reverse mortgages.  These would include Single Family Homes, qualified condominiums, townhouses, manufactured homes and 1 to 4 family owner occupied residences are eligible.

How do I get my money?

You have three options on how to receive your funds.

1. Monthly Payments (made to you)
2. Lump Sum Cash to you
3. Line of Credit – unscheduled payments or in installments, at times and in amounts of borrower’s choosing until the line of credit is exhausted.

What are the Benefits of a Reverse Mortgage?

• Funds from a reverse mortgage are tax free and do not effect your eligibility for regular social security and Medicare.
• Reverse mortgages allow you to access the equity in your home while allowing you to stay in the home.
• No monthly obligation of a mortgage payment.

A Reverse Mortgage borrower cannot be forced out of his/her home. Nor will he ever owe more than the value of his house. Reverse Mortgages are “non-recourse” loans, meaning in the rare case of drastic declines in home prices, the homeowner can never be held liable beyond the value of the subject home.

Requirements of maintaining a Reverse Mortgage

You continue to be responsible for payment of property taxes, hazard insurance and the proper upkeep of the home.  Any breach of these obligations renders the outstanding loan due and payable.

Similarly, any absence from the home of the last surviving borrower for more than twelve consecutive months terminates the agreement.  Selling or renting out all or part of the home or having liens attached to the home for whatever reason also means that all bets are off and the transaction ends.

What happens when I die?

At the time of your passing, the reverse mortgage comes due and payable in full.  At that time, your heirs have two options.  First, they can payoff the balance and keep the home.   Second, they can sell the home and they would receive any proceeds above the reverse mortgage balance.

If you are interested in receiving more information about a reverse mortgage or would like to speak to someone about a reverse mortgage, please call us at 702.376.0088.