Nathan Watanabe

A new record of 4,702 sales of single family, townhomes/condo in June 2009 beats the previous record of 4,414 set in June 2004. Also, homes prices stayed flat for the month instead of declining it is the first time for many months. We have strong demand for investors and first time home buyers taking advantage of the $8,000 tax credit. Fewer home sellers are reducing their prices in the Las Vegas Area signaling a boost for the market. Realtors in the Las Vegas Area are seeing multiple bids on low-priced foreclosed homes. Lets all hope we are close to a BOTTOM.

It recently announced that there are two planned Solar Energy Plants planned for Southern Nevada with Nextlight Renewable Power as the developer. We already have the largest Solar Power Plant in North America in Nellis AFB. Boulder City has three more Solar Power Plants that have been proposed. With the amount of days that we have the sun shining in Las Vegas (about 210 sunny days per year) it is about time that we get into the renewable energy. Senator Harry Reid has been quoted saying Nevada is the "Saudi Arabia" of solar and geothermal energy. It is about time that we bite the bullet and reduce our dependence on fossil fuels.

In most cases it is better for the Lender to do a Short Sale than foreclose on a Home. Then why do they take such a loooooooooong time to get an approval for a Short Sale (SS)? Here is what I see as some of the advantages of a SS:

•· They lose less money!

•· Close Quicker = get money back Quicker and use that money Quicker.

•· Less damage to the Home, by the time the Home gets foreclosed on some people take everything they can out of the Home like appliances, lighting and plumbing fixtures, etc. or damage it.

•· They would have to worry about vandalism, more damage to the home or squatters.

•· Extra HOA fees and taxes.

A lot of the time they take so long on their decision that they lose a qualified Buyer because the Buyer does not want to wait that long or the Home has depreciated more that what the Offer was when it was first made and the Buyer does not want it any more or the Home will not appraise which makes the selling process longer or the Home gets foreclosed on which then adds to the Lenders list of REO's.

And the reputation is such that SS takes too long or won't close so, which feeds on itself creating a cycle and perception that SS do not close. It seems to me that a lot of the negotiators know this but, are hostage to the policies and procedures of their Management and cannot do much to change it. Realtors also, do not like to show SS for these reasons and that helps add more to the REO inventory and with more and more REO's, that creates more and more inventory on the market and prices continue to decline thus continuing the downward cycle.

So can someone tell me Why the Lenders continue to make it so difficult to get a SS Closed???

These general suggestion and information for Buyers and Buyer's Agent to know about Short Sales (SS) and this is not meant to be an all inclusive list;

• The Offer is with the Seller and it is Contingent on Lender's Approval
• The Approval Process usually will take from 60 to 90 days so be prepared to wait that long and make an Offer good enough for the wait.
• The Offer should be close to the Market Price the Lender will not Approve an Offer that is too low (why would they if they can get a better net if they foreclose on the home)
• The home will be sold "As Is".
• The foreclosure process does not stop so, let your Buyer know that if they decide to make an offer on multiple homes (really should not be done but, some people are doing it) and "see" which ones comes first or if they decide that to do not want to Buy the SS that they are putting the Seller/Owner at risk for a Foreclosure. The foreclosure would be delayed if they are working on a reasonable Offer but, if the Buyer drops out the home will probably get foreclosed on..
• The Lenders Approval dates are firm there may be per diem charges to the Buyer if they do not close on time.
• The Seller usually will usually have money to bring to closing so the Buyer may need to bear some of it.

There is an attitude out there that it was the Borrower's (Seller's) fault "blame the Borrower" there is plenty of blame to go around as to how we got into the situation we are in now from the International Monetary Fund, to the Rating Agencies, to the Wall Street demand for Mortgage Backed Securities, to Credit Default Swaps, the large and small National and International Banks, Fannie and Freddie, Insurance Companies, the Fed, Loose Lending requirements, Fraud, Little or no Regulations of the Investment Banks, Assumptions that Real Estate will only appreciate, Greed the list goes on and on.

Is Dubai making a power play to get more ownership of MGM Mirage's City Center. Does Dubai's law suit have merit? MGM Mirage say no!