Score High for Your New Las Vegas Home

What’s in a number? Your chances of getting your new Las Vegas dream home – that’s what! Your credit score can be the one thing that keeps you from owning your next home, so let’s look at how your score is determined and how you can keep (or get) your score up.

The whole point of a credit score is to offer lenders a quick and easy way to estimate the risk associated with lending you money.  If lending you money is riskier (because you’re more likely than someone else to default), the lender will charge you a higher interest rate to compensate for that higher risk (or will simply not lend to you at all).  The most commonly used credit scoring method is the FICO score.

Here are the five factors (and their relative importance) that determine your credit score:

#1: Payment history (35%). The payment history factor is fairly simple to understand: it takes into account how you’ve paid your bills.  After all, your history of debt repayment is an excellent indication of whether or not you’ll pay your future debts on time.  Payment history includes delinquencies, foreclosures, bankruptcies, as well as how many accounts were paid late, the amount(s) that were paid late, and how recent those delinquencies are.

#2: Amounts owed (30%). Almost as important as how you’ve paid your bills is the amount of debt you hold.  That’s because the more debt you hold, the riskier you’ll become – the more debt you have, the more likely it is that you’ll default on one or more of those debts.

#3: Length of credit history (15%). The longer you’ve had accounts open, the more debt repayment history there is for potential lenders to look at.  And the more on-time debt repayment history you have, the more confident your lender can be with your ability to repay your debts on time.  If you’ve just begun to establish your credit history, on the other hand, your lender has less “past behavior” to judge you on.

#4: New credit (10%). Research has shown that people who take out a lot of new credit at one time pose greater credit risks than those who have not taken out new credit lately.  The “new credit” factor incorporates, for example, the number of recently opened accounts you have in proportion to older accounts and the number of times you’ve recently applied for new credit.

#5: Types of credit used (10%). This factor considers the types of debt you have – installment debt (like a mortgage) and revolving debt (like credit cards).

Why does it matter? Your credit score will affect not only whether you’re able to qualify for a Las Vegas home mortgage, but also the rate you can get.  The following table is an example of how much less a person with a higher credit score might pay each month:

Source: MyFICO.com

On a 30-year fixed rate, $150,000 mortgage, a Las Vegas homeowner with the highest credit score would pay $150 less every month – and $54,133 less over 30 years – on their Las Vegas home than a homeowner with a fair (620-639) credit score.

At Shelter Realty, we understand numbers (like your FICO score, the price of your new home or your new zip code) and how important they are.  So call our agents today at (702) 376-7379 or visit us at www.shelterrealty.com and let us show you our numbers.

A tenant application is like applying for a job. Here, an applicant has to prove that they will be a good renter (pay on time, take care of the property, be considerate of neighbors). So how does a landlord (or the landlord’s property management company) know if they’ll be a good renter?  Same way a prospective employer would – by checking up on (and interviewing) the applicant.

At Shelter Realty, we have a 6-step Las Vegas tenant screening process that determines an applicants overall score.  Prospective renters must be cleared on all 6 steps and obtain a certain score before they can sign any lease.  Here’s what an applicant can expect during our tenant screening process:

Step 1: Credit check. Credit checks reveal the applicant’s financial history. We check to see if they have defaulted (failed to pay) on any loans (mortgage, car, school, etc…) or credit cards. If they have recent collections for utilities as this is an indicator that the applicant most likely won’t pay their rent on time.  If an eviction in the last 5 years is listed on their credit report, it’s an automatic denial.

Step 2: Criminal background check. We check to see if they have ever been arrested (any kind of criminal history may be a warning sign, especially felony arrests).  We want to protect our client’s property and the neighborhood.

Step 3: Employment verification. We check to make sure that the applicant is honest about their employment (and that they are in good standing at work). After all, a good employee usually makes a good tenant.

Step 4: Income verification. While a steady stream of income (employment) is critical, we also need to know how much an applicant makes – that they have enough income to cover the rent and their other expenses. We look at their current pay stubs and/or bank statements (factoring in additional obligations that take away from their income).

Step 5: Rental history verification. Does the applicant have a good history of paying on time or multiple late payments?  Did the applicant leave their last residence in good condition or was the landlord left with a large repair bill?

Step 6: One-on-one interview. We want to meet the applicant (usually in person, but on rare occurrences, over the phone) and get to know the applicant better than we could just based on the tenant application alone.  By meeting and discussing the results of the screening process, it allows us to verify the information obtained and sometimes discover discrepancies.

Of course, throughout the process we honor the fair housing laws and consider all of the information that we’ve been given.

At Shelter Realty, we have a full staff of property management professionals who can make the rental application process as smooth as possible. Call us today at (702) 376-7379 get started on the tenant application process or visit our website to see our huge selection of Las Vegas rental properties.

You’ve come to the realization that you owe more on your Las Vegas house than it’s worth, so now what? You don’t want to foreclose (when the bank repossesses your home) but you want to get out of your house and mortgage. Short sales can be a viable option for you – but if you are unsure of the process, then it’s time we had a talk.

Working with a true short sale specialist (like Paul Rowe, the managing agent for the short sale division at Shelter Realty) is the one of the best ways to boost your chances of a successful short sale.  In fact, a real estate agent with proven experience with Las Vegas short sales can mean the difference between a successful short sale and a foreclosure (which is typically a far worse black mark on your credit than a short sale is).

When you find a short sale agent, you should have an open and honest conversation about what to expect. Will the short sale take one month, three months, nine months? You should ask as many questions as possible, because after all, you are the one who is drowning in your house.

As you consider whether to short sale your Las Vegas home, keep these three points in mind:

• With the right short sale expert, your Las Vegas short sale doesn’t have to be painful.  (We can’t guarantee success, but we won’t make the process complicated).  A short sale is a complex transaction that demands a real estate agent with expertise and diligent follow up systems, and having personal relationships or internal connections with lending institutions are invaluable.  The right short sale agent will take care of those complexities; for the seller, the short sale process shouldn’t be difficult.

• Patience is required. Once you’ve made the decision and started the short sale process, then you just have to wait. It can take at least 30-60 days to get your short sale approved – which we know seems like a long time. Sometimes, though, the process can drag on much longer, when the mortgage holder drags its feet. Because no two shorts sales are the same, times vary.
  
  While you wait for the short sale approval, this is the time when the process can feel really daunting. It can be frustrating not knowing the status of your mortgage – and that’s compounded when you don’t have good communication with your agent. It’s another reason having a great short sale agent is important.

• A Las Vegas short sale specialist with proven success is invaluable. Why hire any agent when you could hire one who is in the top 5% of real estate listing agents in the nation with regards to short sale closings. A real estate agent who has been trained to know how to make the short sale as efficient as possible will make your life easier (some agents, like Paul, work exclusively with short sales and have perfected their process).

The Las Vegas real estate market, the economy, the banks, short sale rules, and laws governing short sales and foreclosures can change from week-to-week (or hour-by-hour), which is why it is important to work with real estate professionals who are experienced with short sales and who have the most up-to-date knowledge.

Let us get you out of your submerged house and onto dry land. To set an appointment with Shelter Realty’s Short Sale Genius, or simply to learn more about how our short sale process can be your lifesaver, call us today at (702) 376-7379 or visit www.shelterrealty.com.

Nevada Law AB373 Aimed at Homeowners Who Damage Homes Prior to Foreclosure/Short Sale

The Nevada Legislature has taken steps against homeowners who deliberately damage their home prior to vacating the property during the period when the property is in default by criminalizing such behavior. After October 1, 2011 it will be a misdemeanor according to AB373. Persons can be subject to arrest and subsequent prosecution.

Owners may think they are getting back at the banks by taking this action but all they really do is hurt others. The banks are doing just fine. Who is really affected are the neighbors who see their properties decline even further when the home sells for less than it should. The next homeowner, who had nothing to do with the situation, can be affected for years if the damage inflicted by the previous homeowner leads to unnecessary maintenance breakdowns. Also, insurance premiums and mortgage rates can  also rise as the risk to loan in our area increases.

For any questions related to foreclosure and short sales, please contact Shelter Realty at 702-376-7379. You may also email us at info @ shelterrealty.com.

There are currently 200 homes for sale in the Las Vegas 89014 zip code, which includes the master planned community of Green Valley. Green Valley is located primarily in Henderson (the southeastern part of Las Vegas). Development first began in 1978, so that means within its 8,000 acres, you can find every home style, from distinctive ‘70’s era homes all the way to new-build homes.

Green Valley is full of neighborhood parks and walking trails and has an outstanding array of shops, gourmet restaurants and retail services. Also, the community has some great resources like outdoor amphitheatres, public swim clubs, theaters, hospitals and baseball fields. In Green Valley, there is truly something for everyone.

Homes for sale in Las Vegas zip code 89014

According to public data records complied by Trulia, between April and June 2011, 944 homes sold at a median sales price of $124,000. That price is 13.6 percent lower than the second quarter (April-June) of 2010.  In other words, if you’re looking to buy a home in Green Valley, now is a good time to get a great deal.

In the second quarter of 2011, the median sales price of homes in the 89014 zip code (including Green Valley) was 16.22% lower than the median sales price for Henderson Nevada (again, according to public data records complied by Trulia).  With Green Valley homes costing less than other Henderson homes, now could be a great time to get a great deal.

Remember, though, that if you’re considering buying a new home in Green Valley – or anywhere in the Henderson/Las Vegas area, you can still benefit from the services of a professional real estate agent (who will, for one, help you negotiate the sales price with the home seller).

Neighborhood schools in Green Valley

There are a number of schools within the Green Valley master planned community itself.  Green Valley High School received a distinguished GreatSchools rating of 8 out of 10 and Green Valley has 6 private preschool options. That’s a big plus for owning a home in this desert community (even if you don’t have school-aged children, the quality of neighborhood schools do affect a home’s resale value).

Here is a list of the schools that serve Green Valley:

Source: GreatSchools.org

Things to do in and around Green Valley

Easily-accessible attractions: Green Valley’s proximity to the Las Vegas valley makes it a convenient community to live in. It is home to The Green Valley Outdoor Sculpture Collection; one of the valley’s best-known public art displays that features works by local and nationally renowned artists. Green Valley also has the Black Mountain Recreation Center, the Whitney Ranch Aquatic Complex, the Lorin L. Williams Indoor Pool, Green Valley Library, and the Henderson Campus of the Community College of Southern Nevada.

If you want golf, a banquet room, or some history, then perhaps a visit to:

The Legacy Golf Club: This premier golf club was designed by the acclaimed golf course architect Arthur Hills. The Legacy Golf Club is an 18-hole, desert jewel highlighted by manicured playing conditions, multi-tiered fairways and large undulating greens. The Legacy Golf Club was selected by Golf Digest as one of the “Top 10 Courses You Can Play” in Nevada. 

WildHorse Golf Club: Wildhorse Golf Club (owned by the City of Henderson) is home to one of the toughest holes in Vegas as well as a great venue for golfers of all abilities. Originally built in 1959 and redesigned in 2004 by architects Brian Curley & Lee Schmidt, the course features several holes guarded by shimmering lakes. This public golf course also features a magnificent Grand Ballroom overlooking the golf course and is available for tournaments, banquets or weddings. Golf Digest rated the club as one of the “Best Places to Play.”

Clark County Heritage Museum: This Henderson museum is a 30-acre site that features a modern exhibit hall with a timeline exhibit about southern Nevada from pre-historic to modern times and a collection of restored historic buildings that depict daily life from different decades in Las Vegas, Boulder City, Henderson, and Goldfield. Also preserved are newspaper print shops, railroad depots and a real 1918 Union Pacific steam engine. Visitors can also gaze at mineral specimens found at a mining exhibit as well as walk through a resurrected ghost town and a half-mile nature trail.

If you’re interested in buying or renting a Green Valley home, or if you’re looking to sell your Green Valley home, give Shelter Realty a call today at 702-376-7379 or contact us here.  We have real estate agents ready to assist first time home buyers, investors, sellers, and renters.  (Also, click here to see a full listing of Green Valley homes for sale and rent.)

Las Vegas Foreclosure Home Buying 101: 5 Things Every Buyer Should Know

A large percentage of homes for sale in Las Vegas right now are foreclosed homes (also called REO or bank-owned, these are homes that the bank has foreclosed and now own). Often, savvy home buyers can purchase a foreclosed home for less than a comparable traditional sale. But when it comes to buying bank-owned homes, there are some important things to watch out for.

If you are looking to buy a foreclosed home – especially if you are a first-time foreclosure buyer – then there are 5 things you’ll need to consider before signing on the dotted line:

1. Assemble your foreclosure home buying team.  You’ll want to hire a real estate agent who has experience with foreclosed homes, a title company, a reputable home inspector who has a good eye for problems, and a maybe real estate attorney (if your agent recommends one) who can help with any legal issues that may surface and protect you as a buyer.
2. Be aware of what may be hiding (or missing). Remember that you are buying a home that the owner stopped paying for; it may have been neglected. A thorough home inspection is always important to reveal any problems with the property, but it is especially important when buying a foreclosed home.
3. In our work with Las Vegas homebuyers we’ve seen it all – from bank-owned homes that were impeccably cared for to the end to those that the homeowners totally trashed.  Pay special attention to potential damage like holes in walls, damaged carpet, missing floor tiles, and broken windows.  Watch out also for missing or dysfunctional appliances (ranges, dishwashers, ceiling fans, just to name a few).
4. Las Vegas bank-owned homes are typically sold as-is; meaning that even if the home inspection reveals damage, the bank typically won’t repair it. Still, have the home inspector document the damage and what he has recommended be repaired and/or replaced.  Then get an estimate of what those repairs and replacements will cost.  A good real estate agent can negotiate with the bank to at least determine that the sales price reflects the repair expenses you’ll have to incur.
5. Clean the title.  There have been a number of lawsuits around the country by former homeowners who allege that their banks improperly foreclosed on their homes.  Even if those homeowners win their suits, it’s not likely that a judge would take away the property from a homeowner who purchased it from the bank.  But it raises the issue of “clean title.” A part of any home buying process, doing a thorough check to ensure that the title is free and clear is critical.

Another point to watch out for: sometimes there will be a lien (or liens) on the property, often from unpaid back taxes or homeowners association (HOA) fees. The bank might raise the price of the home to try and cover those liens, which must be paid before the home sale can be finalized.  This is another point on which an experienced Las Vegas REO real estate agent can really help.

1. Get financed.  We always recommend getting at least a mortgage pre-approval before you start the REO home purchase process. That way, you’ll know how much you can afford. Remember to include the money you’ll have to spend on repairing the property when you calculate the sales price you can afford. Sometimes, banks will offer qualified buyers mortgage deals on the foreclosed properties they’re selling (as an extra incentive to get the property off the banks’ books).  Your real estate agent can help you negotiate this as well.
2. Get fair market value. As always, you want to pay at or below fair market value for the home. That means you’re paying at or below what comparable homes (similar age and size in the same neighborhood) have sold for. Compare apples to apples, not apples to oranges ­– compare to other foreclosed home sales, not to traditional or even short sales. At Shelter Realty we have access to all the Las Vegas area home sales statistics, and we’ll make sure our offer is at or below fair market value.

If you’re thinking about buying a Las Vegas bank owned home – either to live in or as an investment property – Shelter Realty has the foreclosure expertise and the experience to help.  Call us today at (702) 376-7379.  To see the Las Vegas foreclosed homes currently for sale, visit www.shelterrealty.com.

Given that a large percentage of Las Vegas home sales (almost 22%) are short sales, I’d like to go over the Las Vegas short sale process.  In some ways, a short sale is a lot like a traditional sale – your real estate agent lists your home for sale, puts out the “For Sale” sign, markets it to his network, maybe even holds open houses.

But in many other important ways, a short sale is much different.  Those differences all center around the fact that the mortgage holder (bank) must approve the short sale (because, after all, you’re asking the bank to accept less than you owe as payoff on the mortgage).  Today, let’s focus on what is probably the most important set of documents you will provide your agent during the process: the short sale packet.

What is the short sale packet for?  The short sale packet is in essence your proof that a short sale is your only alternative to foreclosure.  That you either 1) cannot afford your mortgage payments and/or 2) have to move and can’t pay the difference between the sales price and what you owe.

What goes into the short sale packet?

• Hardship letter.  As I wrote in Don’t Sell Las Vegas Short Sales Short, you’ll have to document some hardship – some reason you have to sell now and can’t cover the difference between the sales price and what you owe.  For many of our clients, the hardship was a job relocation (they had to move) or some event that made payments unaffordable (an adjustable rate mortgage reset, a job loss, medical bills, divorce, death of a spouse or co-borrower, failed business, etc.).  Explain why a short sale is your only alternative to foreclosure.

• Financial worksheet.  If you’ve said in your hardship letter that you can no longer afford your mortgage payments, here’s where you prove it.  Or if you’ve said that you have to move for a new job and you can’t cover the difference between the mortgage balance and the sales price, here’s where you’ll prove that.  The financial worksheet will include much of the same information as a home loan application does – a full list of amounts and sources of income; a full list of expenditures (how much and where it goes); a full list of all of your assets (what you own and what it’s worth); and a full list of your liabilities (what you owe).  Be detailed – the bank is going to compare this information with what’s on your credit report, paystubs, bank statements, and tax returns.

• Tax returns.  Provide copies of the last two years of 1040 tax returns for all borrowers.  The bank will use this information to verify the income you’ve reported (or to confirm if you’ve claimed a significant reduction in income).

• Pay stubs.  One month’s worth of pay stubs from the employer(s) of all borrowers.  To verify your most current income.

• Bank statements.  Two months’ worth of bank statements (from your primary checking or savings account).  As with the tax returns and pay stubs, the bank will use these to verify the information you’ve reported on the financial statement.

Shelter Realty provides their clients with complete packets: If all of the above items are sounding like a big hassle, don’t worry. Our clients are provided easy to follow instructions and pre-formatted documents the banks prefer to see. A short sale packet can be compiled in less than an hour. Our clients are also offered direct consultation to ensure completeness and answer any lingering questions prior to sending back their packets.

After I give it to you, what do you do with it?  When we receive an offer from a buyer, we take that offer, along with the short sale packet you completed, and send it to the short sale department at the bank.  A decision from the bank can then take anywhere from 30 days (or, in some cases, less) to 90 days or more.

If you’re considering a Las Vegas short sale, get the help of a real estate professional with proven short sale success.  That’s Shelter Realty – give us a call today at 702-376-7379 or contact us here.

I ran across a report the other day from Zillow.com that got me thinking about the different types of real estate investors – and the fact that some markets are better for some kinds of investors than others.  Read on to see where you fit.

You know you’re a “traditional” rental income real estate investor if. . .

• You plan to hold on to the property for at least a few years
• You plan to rent out the property
• You are more concerned with generating rental income (positive cash flow) than with appreciation

If you fit in this camp it’s important to look for Las Vegas investment properties that will generate stable income over the long term.  Think about what kind of renters you want to attract.  Lower income?  Middle income?  Vacationers?  Then buy a property with the needs of those renters in mind.  (Learn more about how to generate a successful rental income here.)

You’ll also want to consider the help of a professional property management firm.  You could do it yourself, of course, but before you go down that path, know what it entails (see DIY Las Vegas Property Management? First, Consider This. . .)

You know you’re a “quick win” (rapid appreciation) real estate investor if. . .

• You buy property for the short term to take advantage of rapid price appreciation
• You look for properties that are undervalued by the market, or have hidden potential for rapid appreciation
• You’re far less concerned with the “fundamentals” of the property than with the likelihood that it will appreciate in value significantly over a short period of time

“Quick win” real estate investors were like bees to honey during the Las Vegas real estate boom market in the early and mid-2000s.  With prices rising so quickly at the time it was easy to buy one month, sell three months later and cash in on 20 percent net appreciation.

Not so any more.  With prices still falling in the Las Vegas real estate market (and markets around the country), rapid appreciation is no longer a source of quick wins.

You know you’re a foreclosure “fix-and-flipper” if. . .

• You focus on distressed properties (some short sales, but mostly foreclosed homes)
• After purchasing the home you make quick, primarily cosmetic, improvements
• You then resell the home at a profit
• You frequent public auctions of foreclosed homes

Just as the boom market of the early and mid-2000s was a boon for rapid appreciation investors, so has the bust market been a boon for savvy foreclosure flippers (many of whom used to be the former, but have tweaked their investment strategies to fit the realities of the Las Vegas real estate market).

Because banks typically sell foreclosed homes below market value, there can be significant profit to be made – especially if you can separate the homes that need only cosmetic improvements from those that need significant (and expensive) work before they can be resold.

Remember that on the courthouse steps, it’s caveat emptor – buyer beware.  Banks sell foreclosed homes “as is” so you’ll need to do your homework to know which homes can yield a profit and which might be money pits.

Many of the most successful foreclosure investors work with real estate agents experienced in finding those homes with the most profit potential.  At Shelter Realty, our foreclosure experts can do the work of sorting through available properties, and even going to auctions for you.  Browse bank-owned Las Vegas homes on our website here, or give us a call right now at (702) 376-7379.

The fact that foreclosed homes still represent a fairly large percentage of the Las Vegas real estate market means great potential for foreclosure investors and for rental income investors too.  Whether you’re looking for help investing in Las Vegas bank owned homes or need a great property management company, Shelter Realty is here to help.  Contact us today.

It may seem contradictory that in the real estate market leading the nation in foreclosed homes, where prices have fallen so dramatically that a large percentage of homeowners are underwater, new home developments can be succeeding.  But in Las Vegas, they are.

Why?  Because there is demand for newly-built Las Vegas homes. With prices lower than they’ve been since the early 2000s, many Las Vegas homebuyers are capitalizing on the opportunity to get a brand new house at a super-low price.  Many say, “Why buy ‘used’ when I can get such a great deal on a new home”?

Some analysts say that’s bad for the Las Vegas real estate market – that we’ll never get out of the real estate funk until we deplete the excess supply of homes on the market.  Indeed, there are far more homes listed for sale than there is demand for Las Vegas homes.  And the laws of supply and demand tell us: prices won’t rise (not significantly anyway) until demand is greater than supply.

But there are Las Vegas neighborhoods – and certain types of Las Vegas homes (namely, new builds) – that have their own demand, unique from the broader real estate market.  Roughly 25 percent of Las Vegas home sales were new builds.  And that’s a good thing, because new housing developments help support the Las Vegas economy.

Buyers will find new home developments across the Las Vegas area.  In Henderson, KB and Ryland Homes are developing vacant land at Horizon Ridge Parkway and Gibson into plots for more than 200 single-family homes.  But they’re going about their development a bit differently this time around.  Instead of a “build it and they will come” approach, many Las Vegas home builders are instead selling homes first and then building them

Buying a new Las Vegas home

One benefit of buying a new home over a resale is that you can design it just so. Upgrades, layout, décor – choose whatever best suits your needs.  Another benefit: new homes come with at least a one-year top-to-bottom, inside-out builder warranty (not something you’ll typically get in a resale).  And, new homes may be more energy efficient (and those savings can really add up).

A point of caution: many potential homebuyers think that buying a new home means they don’t have to hire a real estate agent – and most home builders don’t eagerly suggest otherwise.  But it’s important to remember that the builder’s sales agent works for the builder – to sell you the home for the most money they can get.

Doesn’t it make sense then, to have someone on your side, working for you?  (Remember, the seller pays the buyer’s agent – you won’t have to pay anything for the benefit of having an experienced real estate agent helping you through the process.)  In most cases, builders require that you bring your real estate agent with you the first time you visit the sales office or model homes.  So give us a call today at 702-376-7379.

Have you wanted to own a Las Vegas home but figured you could never afford it?  Well, when sales prices were in the $300s (or higher) that might have been true.  But now that the median sales price of a Las Vegas home is in the low $100s, homeownership might be in the cards for you after all.

And now could be the time to buy.  Statistics from the Las Vegas housing quarterly report by the Center for Business and Economic Research (CBER) at the University of Nevada point to 3 great reasons why now is a good time to buy a Las Vegas home:

• Las Vegas home prices are dropping. The median Las Vegas home price is now $130,000 – down from $135,000 a year ago.  The price per square foot is down, too, from $74 to $72.  That means more house for less money.

• Las Vegas leads the nation in the number of foreclosed homes.  And, Las Vegas has the highest negative equity rate among all U.S. metropolitan areas. (In other words, more homeowners in Las Vegas are underwater – owing more than their homes are worth – than anywhere else in the country.)  Significant negative equity can make it difficult for homeowners to keep their homes when circumstances change (interest rates adjust, a homeowner loses a job, etc.).  So it’s not surprising that Las Vegas also leads in the nation in the number of foreclosures.But for buyers, a large supply of foreclosed homes (also called REOs, or real estate owned by the bank) can mean a great opportunity to buy a nice home at a great price.  Remember, banks aren’t in the business of owning homes – they’re eager to sell these homes (the longer they hold onto them, the more money they lose).  Yet buying a Las Vegas foreclosed home can be trickier than buying a traditional resale – so the help of a real estate agent experienced in REO purchases is important.

• The Las Vegas foreclosed home rate is slowing. Although Las Vegas has the most foreclosed homes in the nation, that trend may be shifting. The CBER report shows that foreclosure filings are down (not gone yet, but down).  So now may be the right time to get in on a great Las Vegas REO deal.  Hiring a real estate agent with knowledge (and experience) like Shelter Realty can help you find a good deal on your Las Vegas home – before the good deals are gone.

The data says it all: there are great deals to be had by Las Vegas home buyers.  From foreclosed homes, short sales, new builds, and traditional resales, there is lots of great inventory out there.  For now.  For helping finding the right home at the best price, give Shelter Realty a call today at 702-376-7379.

While only your lender can make a final determination about your eligibility for a short sale, you can get a good idea of your qualifications before you begin by having a frank discussion with a qualified short sale specialist.

You know the value of a short sale.

A short sale is a special arrangement with the bank that allows you to sell your home for less than what you own. By doing a short sale, you’re avoiding foreclosure, doing less damage to your credit and finalizing your obligations to the bank leaving you free and clear to get a fresh start. A properly negotiated short sale can prevent your bank from having the ability to collect more funds from you after the sale, and you can avoid bankruptcy, which many are forced to use as means to escape the legal hounding of the banks.

You’re in financial trouble.

You can’t have a short sale just because you want one. A vast majority of homeowners in Las Vegas are upside down on their mortgage if they bought during the boom years. The bank isn’t going to approve a short sale just because you don’t want to deal with the big payments anymore. On the other hand, if you can’t deal with your payments anymore thanks to a hardship like unemployment, rising interest rates and payments, pay cuts, or a new financial obligation like child support or new dependents, you’re much more likely to be approved for a short sale.

When to seek help?

If you know you’re not going to be able to keep up with your payments, now or in the future, it’s time to get a professional opinion. A great REALTOR® with a proven track record in short sales (at least 20 closed listings) will be able to look at your individual situation and advise you on your potential suitability for a short sale.

Work closely with your REALTOR® to get the application process started. It can frequently take up 60-90 days to get approval from the bank for a short sale, and starting as soon as you’ve missed payments gives you the biggest window for sale possibilities. Waiting until you’ve missed months of payments can make it hard to get approval for a short sale before you’re looking at foreclosure action by the bank.

Why is a real estate agent proficient in short sales so crucial?

It’s almost impossible to do a short sale without the help of an experienced REALTOR®. You’ll need industry connections and bank contacts to work through the various steps required to complete the process. Your agent will help you understand the process, handle all the phone calls and paper work, and give you advice on how to make your house more attractive to buyers interested in your property.

Most importantly, a short sale is a sale of your home and will be treated as such by you and your REALTOR. Any time you’re selling a property, you need to be actively working to make your house available to prospective buyers and be ready to move on to your next home at any time.

In the case of a short sale, you’ll be moving either as a result of the sale or after foreclosure if you’re unable to arrange a sale in time. Your REALTOR will help you throughout this process, and by working closely with him, you’ll be much more likely to see a positive result from your short sale giving you a chance to pursue a new life free of a huge debt obligation.

If you’re considering a Las Vegas short sale, get the help of a real estate professional with proven short sale success.  That’s us – give us a call today at 702-376-7379.

Disclaimer: I am a Las Vegas real estate expert, but not a lawyer or a tax accountant.  Nothing I’ve said here should be construed as legal or tax advice.

The Greater Las Vegas Association of REALTORS® reported last week that short sales accounted for 21.6% of all Las Vegas homes sold in June (not counting new builds).  What’s a short sale? It’s when the mortgage holder agrees to accept less than the value of your mortgage as payoff on your home (when the sales price is short of what you actually owe).

So clearly, now is still a good time to do a short sale in Las Vegas – if that’s the right decision for you.  Is it?  Here’s a very simplified decision criteria: Do you owe more than your Las Vegas home is worth?  Do you have to move?  Can you no longer afford your mortgage payments?  If you answered yes to at least two of the three questions, a short sale might be right for you.

If a short sale might be right for you, here are 5 steps you’ll need to take:

1. Hire a real estate agent with experience (and proven success) dealing with Las Vegas short sales. A short sale is far more complicated than a traditional home sale – it involves everything a traditional sale does (pricing your home right, marketing it to potential buyers, etc.) as well as negotiating with the bank (remember, the bank has to approve the short sale).

2. You’ll have to document hardship. The mortgage holder isn’t going to approve a short sale if you’ve got enough cash in the bank to cover the difference between the sales price and what you owe.  Or even if you are underwater on your mortgage but you can afford your payments and there’s no real reason you have to move.  Your mortgage holder will tell you the documents you need to gather as evidence of hardship (they’ll likely include an explanatory hardship letter, recent tax statements, a list of your assets and liabilities, pay stubs, etc.).

3. Recognize that the debt you owe might not be fully discharged in the short sale. Unless your Nevada short sale contract specifically states that the proceeds of the sale will constitute a “full and final settlement” of the mortgage debt, technically the mortgage lender has six years under Nevada law to pursue you for the deficiency (the difference between what you owed and the proceeds of the sale).  Now, I’ve never heard of a lender actually doing that, but it’s important to understand that they can – unless you can negotiate a full discharge as part of the short sale agreement.

4. If your lender does discharge the remaining debt, you’ll get issued a 1099-C. This form tells the IRS that you had a debt of x amount cancelled.  Before the 2007 Mortgage Forgiveness Debt Relief Act was passed, you would likely have owed taxes on the forgiven debt.  Now, through 2012 you likely won’t owe tax on the discharged debt as long as the debt was money used to purchase your principal residence.

5. Know that a short sale will in all likelihood negatively affect your credit score. A short sale isn’t typically as hard a hit to your credit score as a foreclosure is, but it will likely still be a black mark (typically the lender will report the debt as paid for less than the full balance).  Often more significantly, if you stopped paying your mortgage before the short sale, each of those delinquent payments will negatively impact your credit score.

Clearly, there is a fair amount of complexity involved in a short sale (and we’ve tried to simplify it!).  If you’re considering a Las Vegas short sale, get the help of a real estate professional with proven short sale success.  That’s us – give us a call today at 702-376-7379.

Disclaimer: I am a Las Vegas real estate expert, but not a lawyer or a tax accountant.  Nothing I’ve said here should be construed as legal or tax advice.