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Reno, NV, September 2, 2010: Nevada has been making the headlines lately if you are reading the statistics on employment, housing market and general gloom about the poor economy in the state. Local state election races are pointing fingers on either side of the political spectrum to identify who’s responsible for the current state dilemma.
Enter Reno and Northern Nevada where some positive headlines are coming to light. Enter a new focus on outdoor recreation.
In the last eight months, two national magazines have labeled Reno in their “Best Towns” features.
In the April edition of Men’s Health in an article titled “Ski and Climb Without the Crowds”, the Reno image of downtown casinos and their accompanying all-night buffets are debunked, giving way to a more “hipper” way of life. Men’s Health talks to Reno’s proximity to Lake Tahoe and the four season recreational opportunities available. It also tells about Reno’s new attractions: The Truckee River, coffeehouses, artists’ galleries and a younger-targeted night-life scene. (to read the article, go to: http://bit.ly/9lGiLb )
In a recent edition of Outdoor, the magazine labeled the down town rafting and kayaking park, the new Aces ball park, a rejuvenation of the downtown area and affordable housing prices as a reason to put Reno on your relocation list if you are an outdoor enthusiast. (to read article, go to: http://bit.ly/aIb2mh).
If outdoor recreation is your passion and a second home in an area that offers great amenities to pursue your interests is your goal, why not consider Reno? It’s really a no brainer. Currently, there are sellers motivated to sell, interest rates are low and loans are available to qualified buyers. Prices in our market are very affordable making Reno a great place to invest in a second home.
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Currently 95 homes on the market – Active and Pending
Of the homes currently on the market, there are 47 not located in Del Webb, The Vue and The Village.
Of the 47 homes, only 30 are available without an offer.
- 5 between $200k and $300k
- 10 between $300k and $400k
- 5 between $400k and $500k
- 6 between $500k and $600k
- 3 between $600k and $700k
- 0 between $700k and $800k
- 0 between $900k and $1million
- 1 over $1million
Of the 17 homes in escrow, 15 are subject to a short sale or bank owned and 2 are regular sales.
85 homes have closed in Somersett since January 1, 2010. 17 were bank owned, 27 were short sales and 41 were regular sales.
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Dickson Realty Opens New Somersett Office In Northwest Reno As Market Improves
Dickson Realty, Northern Nevada’s premier real estate company, will extend their range of services to the master-planned community of Somersett beginning Sept. 1, 2010.
“This is a remarkably positive sign for our community that new home development is occurring in northern Nevada,” said Nancy Fennell, CEO of Dickson Realty. “There are very few real estate firms that are expanding in these times anywhere in the nation, and it’s a testament to our relationships and experience in the market that we are able to make that happen in Reno, and specifically, in Somersett.”
In addition to providing on-site sales support for homebuyers, Dickson at Somersett will also offer services to those searching for commercial and rental properties, something that has not previously been offered by the company. Real estate specialist Debbie Bennington is the lead sales person for the project.
Dickson will be working in conjunction with New Britton Land, a land development firm, and HomeCrafters, a custom homebuilder out of Reno, to produce three home floor plans.
The new Dickson Somersett office will be located at 7650 Town Square Way in the Somersett Welcome Center and will be open from 10am to 5pm, 7 days a week. For more information on Dickson Realty, and the Somersett office, please call (775) 746-7222.
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On August 6, 2010 The Federal Housing Administration (FHA) announced it will be rolling out a new program on September 7, 2010 that will offer new FHA insured mortgages to underwater homeowners who are current on their mortgages provided the homeowner’s lender will agree to write off at least 10% of the unpaid mortgage balance.
Sound too good to be true? Well there is a catch. The homeowner must get their lender (servicer) and the investor who owns the mortgage to take a short payoff of the loan. Many lenders and investors are reluctent to do this. So although the program looks great to homeowners it may be easier said than done.
Who qualifies?
- Homeowner must be in a negative equity position (underwater).
- Must be current on the existing mortgage.
- Homeowner must occupy the property.
- Homeowner must qualify for new FHA loan and have a minimum FICO score of 500.
- The existing loan cannot be an FHA loan.
- The existing lien holder (lender) must agree to write down at least 10% of the unpaid balance.
- The new re-financed FHA first mortgage cannot have a loan-to-value greater than 97.75%.
- If there is a second lien it can be re-subordinated to the new loan, but the 2 loans combined cannot be great than 115% loan to value.
Interested homeowners should contact their servicer for more information. When I looked on Bank of America’s website, my servicer, I found mention of the program but that they had not worked out the details and to keep checking back. With the program scheduled to roll out in early September, you may find this to be the case with many lenders.
If you would like a copy of the FHA Mortgagee Letter that details the program, please feel free to contact me.
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If you are struggling making your mortgage payments you need to seek help as early as possible to avoid foreclosure. Fannie Mae, an insurer of home loans, has released a new interactive tool online to help you determine what your options are. KnowYourOptions.com The website is designed to be a virtual one-stop-shop for anyone facing financial hardship and in need of foreclosure prevention solutions.
The site is available in both English and Spanish and includes tools like educational videos, mortgage calculators, financial forms and checklists. A virtual assistant will walk you through the site.
Not all mortgages are insured by Fannie Mae, but this is a great general resource. The site does provide a Fannie Mae Look-up Tool so you can find out if your mortgage is insured by Fannie Mae so you can take advantage of the Fannie Mae specific programs that are detailed on the site.
Again the key for anyone homeowner who is facing difficulties or anticpates that they may have an issue in the near future is to seek help as early as possible. This website is a great first step.
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The National Association of REALTORS released some updated infomation on the affects of short sale, foreclosure, bankruptcy and deed-in-lieu of foreclosure on FICO scores and the ability to purchase another home.
Short Sale (Deed-inlieu of Foreclosure Guidelines are similar) – According to the report the affect on your FICO score from short sale depends on how the sale is reported to the credit bureau. If reported as “not paid as agreed” the score could go down 100+ points. Late payments will also affect the FICO score and are reported for 7 years, with thier impact lessening over time. Buyers looking to purchase after a short sale will have to wait to purchase another home. If purchasing using FHA financing the wait is 3 years (possibly less if not in default at time of short sale). For a Fannie Mae insured loan buyers need only wait 2 years if putting 20%+ down, 4 years if putting between 10%-20% down, and 7 years if putting less than 10% down. If getting a Freddie Mac insured loan the wait is 4 years, 2 years if extenuating circumstance are documented.
Foreclosure – A foreclosure stays on your credit report for 7 years, with the impact lessening over time. A foreclosure could lower your FICO score 100+ points. Buyers looking to purchase after a foreclosure will again have to wait. If purchasing using FHA financing the wait is 3 years. If getting a Fannie Mae insured loan the wait is 5 years from the foreclosure sale date, 3 years if there are extenuating circumstances. Additional underwriting requirements may be required. The wait for Freddie Mac insured loans is similar with a 5 year wait, 3 years for exentuating circumstances.
Bankruptcy – Bankruptcies stay on your credit report for 7 years (10 if there was a full discharge of debt). Bankruptcies generally have a greater negative affect on the FICO score in comparison to the above mentioned issue. Buyers looking to repurchase after a bankruptcy using an FHA loan will have to wait 2 years from discharge date with a chapter 7 BK and 1 year with a chapter 13 BK. If getting a Fannie Mae or Freddie Mac insured loan there is a 4 year wait for chapter 7 or 11, and 2 year wait if chapter 13. Some allowance are made for exentuating circumstances.
Extenuating Circumstances – include serious illness or death of a wage earner, but do not include an inability to sell a house due to job transfer or relocation.
For a full copy of this report please feel free to contact me.
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The federal goverment gave 5 states the go ahead to start using funds from the “Hardest Hit Fund”. Nevada’s state housing finance agency (HFA) will be allotted $102.8 million dollars.
There are four primary elements to the Nevada Plan.
1. Mortgage modification with principal reductions and some forebearance. The prinicipal reduciton component will be in the form of an earned forgiveness loan. It is anticipated that 55%-60% of the programs funds will be expended on this program element.
2. Second mortgage plan aimed at assisting borrowers who have a second lien interfereing with either a short sale or modification of the first mortgage. Approximately 20% of the program funds will be allocated to this option.
3. Foreclosure mitigation capacity building. This program will expand the capacity of HUD approved housing counseling agencies and allow them to increase “intake” capacity.
4. Short sale faciliation-aid to the unemployed. The Nevada plan calls for incentives to financial institutions designed to expedite the short-sale decision making and closing process. The plan will allocate approximately 11.5% of the available funds to this part of the plan.
This fund was established by the Obama Administration in February 2010 to provide targeted aid to families in the hardest hit states of Nevada, Arizona, California, Florida and Michigan. The total alloted to these 5 states is $1.5 billion.
If you are interested in reading the entire NEVADA PLAN please feel free to contact me and I can forward it to you.
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Here is a look at what is happening in the Sparks-Spanish Springs market as of today, May 14, 2010. This data is from the Northern Nevada Regional MLS and is for residential stick built homes in these areas.
Active Listings – There are currently 411 active listings. The median list price for these listings is $194,900. The average days on market is 105 days. Of these active lisitngs, 57 are bank/corporate owned (13.86%), 194 are short sales (47.20%) and the balance are traditional sales.
Pending Listings – There are currently 607 pending listings. The median list price for these listings is $165,000. Average days on market for pending sales is 131 days. Of the pending sales 63 are bank owned (10.37%) and 449 are short sales (73.97%) and the balance are traditional sales.
Sold listings – So far in the second quarter of 2010 there have been 203 sales. The median list price for sold listings was $165,000 and the actual median sold price was $168,000. The average days on the market for sold listings was 138 days. Of the sold listings 60 were bank owned (29.55%) and 70 were short sales (34.48%) with the balance (35.96%) were traditional sales.
Looking at these statistics, we have a relatively low inventory. Of the available inventory almost 50% is short sales. Buyers have to be prepared to deal with long waits if considering this half of the market. The amount of pending inventory is very high, and with 73.47% of the pending sales being short sales we could see some time before these sales close. Many buyers that are waiting on these sales are hoping to close by June 30th for the tax credit and it will be interesting to see how many can actually close by that date given the track record banks have closing these.
Short sales are out pacing the bank owned sales so far in the second quarter. One would think this indicates an improvement in the short sale process, but I think it stems from lower bank owned inventory and over priced traditional sales. Again, it will be interesting to see how the quarter finishes out at the end of June with buyers rushing to close for the tax credit.
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Sellers if your mortgage is FHA insured the process for a short sale is very different. Make sure you work with an agent who knows the difference and can guide you through the process.
FHA guidelines require a seller to get their home approved into the FHA Pre-Foreclosure Program prior to listing the property. Sellers should work with thier REALTOR to contact the servicer (the company you pay the mortgage to) and request to be considered for a short sale. The servicer will provide the necessary documentation and complete an FHA appraisal on the property.
If you would like more informaiton on the HUD Pre-Foreclosure (Short Sale) Program, please contact me for a complete guide.
You can determine if your loan is FHA by looking at the bottom of your Deed of Trust , or ask your REALTOR to order a property profile from the title company which will have a copy of this document in it.
Once the servicer has obtained the initial documents and ordered an FHA appraisal they should be able to issue you the “Approval to Participate” This clearly defines the FHA Fair Market Value, the deadline to get a contract for sale, minimum net proceeds that FHA will accept and the amount of the seller’s incentive and what date you have to close in order for the seller to get that money.
From the issue date on the Approval To Participate you are given a specific date to get the home under contract. If you get the sale into contract within the first 30 days FHA will require the sale to net 88% of the FHA appraised value. If the sale contract comes between day 31 and 60 FHA requires a 86% net. Day 61 to the expiration of the Approval To Participate FHA will allow the offer to be 84% of the appraised value.
Once you list the property you basically have an approved short sale if the offer will provide the appropriate net to FHA. There is one other major thing that needs to be remembered. FHA will only allow up to 1% of the new buyer’s loan amount as a closing cost credit if the buyer of your home is doing a new FHA loan. Many buyers in our market are needing 3% closing cost assistance from the seller. That will not work on this type of sale.
Once an offer is received that meets the required net, it is submitted to the servicer and an Approval is issued. This is what is need to close the short sale.
Sellers are offered an incentive on FHA short sales. If you successfully close the sale within 90 days of the Approval to Participate you can recieve up to $1000 incentive which can be applied to paying off a second lien or other closing costs that FHA doesn’t allow, or if there is neither of these you get the money for relocation assistance. If it does not close in that 90 day window the amount drops to $750.
Here is where things get tricky. You may have a servicer (who you pay your mortgage to) that is not up to speed on FHA guidelines or has a large back log of files. They are still required as an FHA servicer to follow FHA guidelines. You and your REALTOR can contact FHA directly at their national servicing deparment and file a complaint. The number is 888-297-8685. They take your information and create a “work ticket” which is then assigned to a local field officer who contacts the servicer and resolves the issue.
Contact me today for a complete guide to FHA Pre-Foreclosure (short sales.)
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The South Tahoe Wooden Boat Classic (STWBC), a vintage boat show for charity, will be held on July 30th & 31st at the Tahoe Keys Marina & Yacht Club.
This premier judged boat show features 65 rare and beautiful antique and classic wooden boats. Thunderbird, Lake Tahoe’s most famous boat, will be showcased “Celebrating her 70th Birthday”. The 55-foot antique mahogany and stainless steel cruiser, now protected by Foundation 36, will celebrate her 70 years on the Lake throughout the summer but this will be the only place that the public will be able to see her up close outside her boat house, and learn about her history on the Lake.
We are pleased that the show supports these deserving South Lake Tahoe community charities City of South Lake Tahoe Fire Department, Boys and Girls Club of Lake Tahoe, Kiwanis Club of Lake Tahoe, Thunderbird Lodge Preservation Society.
Antique boats from the early 1900’s to the 1960’s are featured. There will be five 1960’s drag boats, including Golden Komotion, a fantastic drag boat which dominated the blown gas class.
- The Tahoe Maritime Museum booth is offering new members a ride in a beautiful boat from their collection.
- The South Tahoe Wooden Boat Classic is offering a chance to win a weekend at South Lake Tahoe, a tour of the Thunderbird Lodge and a cruise on the legendary boat Thunderbird.
- Discount tickets will be available to purchase at any Raley’s, Nob Hill, or Bel Air Market in California or Nevada.
- The boat show will be open on Friday, July 30, from noon to 5 pm and all day Saturday, July 31, from 9 am to 5 pm.
For more information, go to tahoewoodenboats.com, or contact Loni
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Thursday, September 2, 2010 By: Mary Jurkonis
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