
In today's real estate market, with around 2 million foreclosures expected in 2009, it is not uncommon to see a foreclosure tour bus loaded up with prospective homebuyers who are all hoping to find the best deal on a bank owned home in the Las Vegas Valley. If you are interested in purchasing a foreclosure, here are a few things to keep in mind to make the best of your foreclosure tour.
Whether you're an investor or looking to get a great deal on a home you'll live in, I am here to help. With a background in finance and lots of experience selling bank-owned homes, I am prepared to give you the help you need in finding a foreclosed property that would be a good match for you.
Have foreclosure questions? Give me, Yonas Woldu a call - I'm your real estate expert in the Las Vegas Valley! Also visit my Vegas Real Property website and the new AskYonas website
These days the banks have tightened their lending practices for home mortgages. If you don't have enough cash for a 20% down payment on your las Vegas home, finding a mortgage for the home you want to buy here in southern Nevada can be a challenge. Even if you are able to find a lender willing to give you a mortgage with less money down, don't make the mistake of thinking all of your work is behind you. Now, you'll need to get private mortgage insurance (PMI), which protects lenders by paying off your loan if you default - and that might be harder than you think.
Back when lenders were more reckless with their practices, it was common for mortgage insurers to accept any borrower the banks were willing to finance. Today, a record number of those low down payment loans are now in default and insurers are losing billions of dollars. This has caused them to enact tighter standards than most banks, and has resulted in them insuring fewer loans. It is not unheard of now for borrowers to be approved for a mortgage, but rejected for PMI because of a low credit score or high debt-to-income ratios. Other restrictions related to the property and the loan type apply, as well.

If you are looking for a home and will require PMI, you might be disqualified if you have:
• a low credit score - insurers are typically requiring a score over 720
• a down payment less than 10% of the loan amount for a single family home/15% for a condo
• a debt-to-income ratio above 45%
If you are unable to qualify for PMI because you don't have 20% to put down on a home, you might still be able to qualify for a mortgage through the federal government. FHA loans are offered to borrowers with a higher debt-to-income ratio and credit scores as low as 580, and VA loans are available to veterans.
Are you ready to buy a home in Henderson or Las Vegas and already have a mortgage pre-approved? Give me, Yonas Woldu a call.- I'm your real estate expert in the Las Vegas valley! Also visit my Vegas Real Property website and the new AskYonas website.
With foreclosure rates increasing across the nation and here in the Las Vegas valley, more and more homeowners are receiving notices for the sheriff's sale. The conventional advice from legal experts has been to immediately pack up and move, but that is changing. Recently, we've been seeing a new phenomenon coined "bank walkaways," when the bank begins the foreclosure process, then walks away with no word or explanation, leaving the homeowners wondering what happens next. And legal experts aren't sure, either.
Today, if a homeowner leaves after getting a foreclosure notice and the bank fails to finish the foreclosure, the homeowner opens themselves up to being sued by the city for failing to maintain the abandoned property. After all, the home is still in their name. In some cases, water pipes have burst in abandoned homes, creating a flooded basement, water damage, and potential toxic exposure to mold both inside the home and within the neighborhood. If the homeowner had stayed, damage could have been avoided to the property, and the neighbors would be spared from their property values deteriorating further.
In addition, leaving before the bank really owns the home can open the homeowner up to several other problems. These can include:
• a restarted foreclosure process months or years later (after it was assumed things were settled)
• a sold mortgage and a new, more agressive debt collection service coming after the homeowner
• possible legal issues related to taxes, fines, upkeep, code violations, repairs or even demolition costs.
What should a homeowner do if they're facing foreclosure? More experts are advising that they stay in the home, even if they aren't paying their mortgage. While it is still unclear what legal tangles bank walkaways will create, the additional problems homeowners might face if they abandon the property could make the nightmare even worse. In the short term, people will be living in their home without having to pay - in some cases, homeowners will go for a year or more with no one asking for money. If possible, homeowners should be putting away what would have been their monthly mortgage payment in a bank account each month and leaving it there. It could be used in future loan modification negotiations with the mortgage company if it reappears, or as a security deposit on a rental, if people have to move quickly.
Have foreclosure questions? Give me, Yonas Woldu a call - I'm your real estate expert in the Las Vegas valley! Also visit my Vegas Real Property website and the new AskYonas website. For more information on Nevada foreclosure laws, you can also read this online article, and visit RealtyTrac.com to find out what to expect if you're facing foreclosure on your home.
As we're headed into fall, and the real estate market moves toward its traditional slump at year's end, those in-the-know are speculating the strength of the Vegas market from October through December. What might be a wild card this year, and into next, is the $8,000 tax credit currently offered to first time buyers (or those that haven't owned a home in the past three years) that expires on November 30th. This tax credit is being debated by Congress for extension into 2010, and analysts are saying it will likely be extended. What is even more encouraging, is that the tax credit may also be offered to other buyers who have owned a home, further stimulating the real estate market. All eyes are on Washington.
Most real estate experts agree that such an extension would continue to energize the local market, but there are some who are concerned about what that tax bill looks like to the average tax payer. The national economy is struggling, and many people are still losing jobs - in the Las Vegas valley, unemployment is now at a whopping 13 percent. Foreclosures in Nevada were higher than any other state in the third quarter, and show no signs of slowing. Everyone agrees that recovery will largely be reflected in the housing market, but will additional tax credits create a false sense of security while providing a boost to the market? Proponents say that without this government intervention, home prices will go much lower, banks will continue to lose money, and the economy will have little chance of quick recovery.
Meanwhile, as more foreclosures enter the market, prices will likely continue to edge toward greater affordability. In addition, mortgage rates continue to remain historically low. That, coupled with tax incentives for buyers, is likely to be a winning combination for Las Vegas real estate.
Many experts are saying that it is possible that we won't be able to accurately judge where the market is going until late February 2010, when the home buying season heads back into full gear for the next year. That's when we'll know whether extended tax credits, if they pass, are effective.
The $8,000 tax credit could can give first time homebuyers a needed edge in the Las Vegas market. Have questions? Need help planning your personal real estate future? Contact Yonas Woldu today by visiting Vegas Real Property website and the new AskYonas website.

The Las Vegas home buyers market is ripe for investors, who often pick off the homes most affordable to first time homebuyers. In August, 2009, the median home price in the city was $210,000 when bank-owned and distressed property sales are figured in, or $225,000 for non-distressed sales. Median condo prices in August were $123,000. Despite the competition, first time homeowners have some good opportunities to buy a home or condo that was previously valued at much more.
If you are in a position to buy a Las Vegas home right now , one good incentive is the first time homebuyers tax credit about to expire on November 30. Since processing your loan, appraisal, and paperwork for the home takes longer these days, October 15, or to be safe, even October 1, is the deadline. Only those who have closed on their homes before December 1 can claim the credit.
With the credit, can get up to $8,000 or 10% of the value of the house for your purchase. It is good on a variety of single family homes, townhouses, and condos. All you have to do is live in it for three years and the credit does not have to be repaid. If you view the home as a starter home, you can later sell it and apply the equity toward the downpayment on your next home.
At the moment in Las Vegas, there are plenty of bank owned properties up for grabs and more to come. If you buy one, you can use the $8,000 credit in conjunction with a 203K loan to renovate a primary residence where you will live for three year before you sell it or rent it out. If you want to be a landlord later, you can turn it into rental property then.
As a new homeowner, $8,000 can help you in many ways.
The credit is cash in your pocket, Once you claim it as a credit, the $8,000 in cash will come back to you and will help you get the things you need for your home and subsidize your first few mortgage payments. Cash is often tight when you move in. You can buy those new drapes, add deck, or renovate the bathroom. You can even transition from an apartment to a home with additional money.
With $8,000 on the way, you get more home than you planned. You should aim for an affordable house, but the credit can effectively bring down the cost of the home so you can buy a home at the upper end of your price range. Since investors are vying for lower priced homes, you might have less competition for a higher priced home. Since many homes are already priced to sell at incredible prices, you can still plan on lowering your total lower cost by $8,000 when you apply this credit to the principle.
If you would like to apply the credit toward a down payment, there are several ways to do use it for this purpose. Since May, 2009, you can have the credit monetized for any part of your down payment over the3.5% required by FHA or can use it toward closing costs. State housing agencies, certain non-profits, or certain lenders can monetize the credit via a bridge loan or second mortgage to be repaid when the credit comes back. If you need help with your down payment or need help with closing costs, the credit could help you now.
The $8,000 tax credit can give first time homebuyers a needed edge in the Las Vegas market. Have questions? Need help planning your personal real estate future? Contact Yonas Woldu today by visiting Vegas Real Property website and the new AskYonas website.
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