Yonas Woldu Greater Las Vegas Real Estate

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.

Housing has been on a roller coaster these last few years in Las Vegas but at last the market is bottoming out and housing prices are the most affordable in years. This makes it a great time to buy, especially for first time homebuyers who can apply the $8,000 to their purchase to effectively lower the cost. Young couples buying their first home, singles who want a condo, and families who have been renting all their life have a government-sponsored incentive to sign on the dotted line and become homeowners.

In the midst of all this, it's easy to forget that the definition of "first time homebuyer" is much broader than the term implies. If you have not owned a home for THREE years, you can qualify for 10% credit on your home up to a maximum of $8,000 if you are creditworthy and not exceed income limits of $75,000 to $95,000 for singles and $150,000 to $170,000 for couples. In certain cases, you can even apply it toward the downpayment.

Who might be interested in this?

Maybe you who took early retirement few years ago and moved to an apartment but want to be owners again. With the incentive, you could find a nice little house in a planned community like Green Valley.

Maybe you moved to a Los Vegas a few years back, and with the housing market being in an uproar, you keep renting. Now is the time to realize the American dream by settling down in an affordable home in the city or in a nearby area like Henderson.

Maybe personal circumstances caused you sell your home and move home for a while. You lost your job, got divorced, became ill, or wanted to care for a parent. Whatever the circumstances, it's been three years and time is ripe for buying that condo you've always wanted.

Regardless of why you ceased being a homeowner here or more years ago, Yonas Woldu can help you achieve ownership again in you an affordable house in Las Vegas, Green Valley, or other areas of Clark County . Thinking of buying a bank owned home? Yonas can tell you how you can maximize your options by using the credit in conjunction with a 203K renovation loan. Visit Vegas Real Property website and the new AskYonas website. Time is running out on the $8,000 new homebuyer tax credit, so call Yonas today to assure that your loan will close in time.

In the mortgage mess we are still working out of, there is plenty of blame to go around - including to appraisers who overvalued Las Vegas property to support their friends in the mortgage industry. To make the process more impartial and remove pressure on appraisers to aim for a specific value, new regulations went into effect on May 1, 2009 to distance all the parties in a loan transaction.

As a result of lawsuit in New York brought by the Attorney General against the appraisal division of First America Corp. which supposed inflated 260,000 Washington Mutual loans, a set of regulations known the as Home Valuation Code of Contact was implemented May 1, 2009. The law forbids any communication between appraisers and anyone who would derive income form closing the sale.

Though this sounds like a good fraud-busting approach, the law has had many annoying and perhaps unintentional consequences that can delay closings and increase cost for customers.

Not all the communication of the past between loan officers and appraisers promoted fraud. Loan officers tended to use appraisers they had a business relationship with - people who knew the area and who they could call to discuss a particular case. Given that appraising is not an exact science, sometimes more information made the appraiser willing to reevaluate his figures. Did this mean that loan officers selected appraisers who were more willing to consider new information or were more liberal? Sure it did. Was this always a bad thing? The answer is a resounding "No!"

Arguably, some guidelines for communication might be order, but as written, the law is very inflexible. It applies to all non-FHA and VA loans coved by Fannie Mae or Freddie Mac.

• Appraisers are appointed by third party Appraisal Management Companies (AMCs) which randomly select appraisers who might be from out of the area, new, untrained in the type of property involved, or not very good. The appraisers might also come from an internal appraisal company that is separate form the loan division.
• The AMC gets a referral fee which is often passed along to the consumer, as the appraiser, already underpaid, does not want eat. This means that the home buyer will have a higher fee to deal with and- also as a result of HVCC, will have to pay it upfront before closing.
• Appraisals are likely to take longer, a real inconvenience to customers especially when considering that other parts of the transaction are taking longer too.
• The consumer gets a copy of the appraisal report three days prior to closing - a problem if the appraisal is so far off that the bank wants more down payment or refuse to write the loan or disagrees with the appraisal. Any discrepancies or updates will further prolong closings

Given the wacky Las Vegas real estate market, with its highly inllated and then bargain basement housing values, implementing this law should have some interesting results. Outraged lenders and real estate agents Realtors are calling for the regulations to be temporarily shelved. Unless and until this occurs, real estate agents are preparing their clients to wait and have a few hundred dollars accessible to pay the appraiser.

Yonas Woldu is ready to help you find an affordable house in Las Vegas, Green Valley, or other areas of Clark County and help you navigate the system. If you are looking to purchase a home, including a short sale or bank owned home, visit Vegas Real Property website and my new AskYonas website. If you want to claim the $8,000 new homebuyer tax credit, call YOnas today to assure that your loan will close in time.