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November 2010

October 2010

Deficiency Judgments in Nevada...Foreclosures vs. Short Sales

The Great Seal of the State of NevadaImage via Wikipedia

In Las Vegas, Nevada short sales, the biggest concern and issue for the short sale seller (not to mention the real estate professional and other parties to the transaction) is whether or not the lender/bank will agree to not pursue a deficiency judgment as a part of the short sale approval.

There is still alot of confusion concerning the timeframes that lenders can pursue a borrower after a foreclosure or a short sale.

Nevada had been a recourse state for foreclosures prior to the new law that took effect last year.  What does this mean?

For a homeowner who obtained a purchase money loan for their property prior to October 1, 2009 and subsequently was foreclosed upon, the 1st lien holder has 6 months to pursue a deficiency judgment for the balance owed to the bank.  Junior lien holders (2nd, 3rd mortages) have a total of 6 years to pursue a deficiency judgement.

Effective October 1, 2009, Nevada became a limited recourse state similar to California.  Loans made after October 1, 2009; by a financial institution to a borrower who continuously occupies the property as a primary residence are nonrecourse.  This means that the lender may not pursue a foreclosed borrower to recover a deficiency.   This law does not change the statutes that effects short sales... it only applies to foreclosed homes and borrowers.

The following requirements must be met in order for the new law to apply:

  1. The real property is a single-family residence
  2. The loan was used to buy the property
  3. The borrower continuously occupied the property as a principal residence after the loan was made
  4. The original loan was not refinanced
  5. The loan was made by a financial institution

What about Las Vegas Short Sales and Deficiency Judgments?

Bottom line for short sales -  the lenders (1st or 2nd) have 6 years to pursue a deficiency judgment UNLESS whoever is negotiating on behalf of the seller (listing agent, attorney, 3rd party licensed short sale negotiator) is able to have the proper language included in the short sale approval from the bank/lender. 

More blog articles of interest on this subject from local Las Vegas area attorneys...

Attorney Robert Noggle
Does a 1099-C Waive the Lienholder’s Right to Sue on a Deficiency?

Attorney Darren Welsh
Deficiency Judgments Nevada
Foreclosure and the One Action Rule in Nevada
Seller Being Released From Liability Language in Shortsale

Seller Liability After Short Sale

 

Are you a Las Vegas area homeowner facing a possible foreclosure and wanting to learn more about your options?  Contact Us Today for a no obligation Las Vegas short sale consultation.

Jan O’Brien is an expert with the Las Vegas short sale process.   She is the co-author of the Certified Foreclosure Alternatives Consultant designation course.   Call Jan direct at 702-858-9191 to schedule a Foreclosure Alternatives Consultation today.

Considering a Las Vegas Home purchase?  Search all Las Vegas Homes for Sale using our free, interactive map-based search.

Search all Las Vegas Foreclosures, including Henderson, Green Valley and North Las Vegas bank-owned homes.

Las Vegas Real Estate Professionals: Become a Certified Foreclosure Alternatives Consultant (CFAC)Check the schedule for upcoming class dates.

 

Join the WBNL Coaching Wanderers Club - The online, virtual coaching and training platform for Real Estate and Business Professionals.

Your basic, FREE membership includes:

WBNL Coaching Real Estate Business Plan Online Course and Downloads


Las Vegas Blogging & Social Networking for Business CE Class - Nov 9

Bloggingdemystified  

Have you included a Social Media Marketing Strategy  for your business?

Don't miss the last Blogging and Social Networking for Business class of 2010!

Approved by the Nevada Real Estate Commission
3 Hours Continuing Education (PD) CE.3706000-RE
Instructor: Jan O’Brien, 858-9191

Tuesday, November 9th, 9:am to 12 noon

Greater Las Vegas Association of REALTORS®
1750 E. Sahara Ave.
Las Vegas, NV 89104

REGISTER Online:  www.LasVegasRealtor.com
Or via phone with GLVAR Education - (702) 784-5051         
   
Three hour (CE Approved) training seminar covering…

  • What is a Blog? Who Is Blogging? Why should You Blog?
  • The anatomy of a blog – understand all the components and how a blog differs from a conventional website
  • 6 Questions to Consider before Launching a Blog
  • Learn the 15 Top Tips for A Successful Blog
  • How to generate leads using a blog and other social media
  • How does Web 2.0/social networking impact the real estate industry?
  • Learn how to use FACEBOOK, TWITTER, ACTIVE RAIN and LINKEDIN to optimize and drive traffic to your blog!

Bonus Materials - Receive a copy of:

  • Wordpress.com Tutorial ($20 value) A step-by-step guide to launch your FREE blog
  • Real Estate Agents Internet Resource Guide ($10 value) A comprehensive guide to online Listing Tools, Blogging and other Web 2.0 services, tools and technologies

Visit www.WBNLCoaching.com to learn more about our coaching program and online training membership options. Your FREE, basic membership includes a complete real estate business-planning course and downloads.


How Will the Foreclosure Moratoriums Impact the Las Vegas Real Estate Market?

Foreclosure Sign, Mortgage CrisisImage via Wikipedia

Let's do a quick recap of recent news regarding foreclosures, banks and more.  This recent article from DS News - Bank of America Halts Foreclosures Nationwide sums it up nicely.

On September 20th, GMAC Mortgage was the first to halt foreclosures in 23 judicial states due to what it called an “internal procedural error.” JPMorgan Chase followed suit on September 30th. PNC Financial reportedly notified its industry partners that it is suspending foreclosures for 30 days in the judicial states while it reviews servicing procedures.

Consumer advocacy groups, state attorneys general, and federal lawmakers are all calling for a nationwide foreclosure freeze until the banks can clear up the paperwork issues in question.

The nation’s largest mortgage lender, Bank of America announced Friday that it is expanding its foreclosure moratorium from 23 states, as announced by the bank last week, to include all 50 states.

The impact on the housing market really depends on how long the moratorium is in place.  In general, I agree with this commentary...

For those who are praying for higher (or at least stable) house prices in the near-term, foreclosure-gate is good news: By stopping the flood of foreclosures onto the market, foreclosure-gate will reduce inventory-for-sale, which will likely act as a temporary positive for house prices.  So homeowners may get one more temporary gift at the expense of house buyers.

Of course, when the foreclosure-gate moratorium ends, which it inevitably will, a sudden flood of foreclosures will hit the market, as the banks try to make up for lost time. And when that happens, prices will likely temporarily plunge.  So sell while you can.

Read more: http://www.businessinsider.com/and-now-lets-think-about-what-foreclosure-gate-will-do-to-house-prices-2010-10#ixzz129TdquAf
Here are my observations and comments:
  • Las Vegas homeowners dealing with a distressed property sale may have a little more time in their homes.
  • Less REO inventory will push more sales in traditional listings and hopefully short sales
  • Let's hope the banks continue to work toward streamlining the short sale approval process and don't get bogged down or diverted to the latest priority (aka Crisis)
  • I'm not sure we will ever see the "flood of foreclosures" hit the market which would drag prices down further
  • Banks have been telling REO listing agents to get ready for the deluge of inventory for the past year
  • This moratorium will ultimately delay the already lenghty recovery time of the housing market
  • Short sales are not going away any time soon!

My best advice to real estate professionals is to embrace the Distressed Proeprty Market if you haven't already.  Get all the quality training you can.  Stay on top of the trends and distressed industry news by subscribing to industry leaing blogs like:

Business Insider

Housing Wire

DS News

Calculated Risk Blog

 

LAS VEGAS REAL ESTATE PROFESSIONALS:

Do you want to learn more about Alternatives to Foreclosures, HAMP/HAFA, Nevada Foreclosure Mediation Program and how to implement an effective short sale system to generate more business?

Don't miss our next Certified Foreclosure Alternatives Designation Course

CFAC-Logo_330

Next class: WEDNESDAY, OCTOBER 20TH ~ 9am-4:00pm ~ Lunch included!

Cost: $109

iMortgage 9139 W. Russell Rd., Suite 100, Las Vegas, NV 89148

(Behind the Bank of George in the Desert Canyon Business Park –
215 & W. Russell Rd. Take Jerry Tarkanian Way to W. Oquendo Rd.)

Register today at www.shop.stevenkitnickseminars.com

This course is approved by the Nevada Real Estate Commission for 7 hours of general continuing education credits CE.5094000-RE. The course is sponsored by Steven Kitnick Seminars.

Once you complete the Certified Foreclosure Alternatives Consultant Designation Course, you’ll be a trained consultant who understands the alternatives to foreclosure with an emphasis on the short sale process.

 

Are you ready for coaching? Take your business to the next level today. Schedule a complimentary 30-minute coaching session today to find out more.

Let us be your virtual coach as well.  Learn at your own pace and on your own schedule.  Our on-demand online courses integrate multi-media with an intuitive learning management system. Learn more about becoming a member of our community at WBNL Coaching.


Who is Really Profiting from the Foreclosure Crisis?

According to Realtytrac the number of actual repossessed properties in August was 95,000. They also have reported that in the second quarter the number of repos was 248,000. Call it a million over the last 12 months. "How many of these are now tainted" is a central question. But for me the more significant issue is, "Why were they were tainted".

Assume there is a home that has a $250,000 mortgage and the loan is in default. Now assume that the owner of that mortgage wants to sell it. Assume further that the mortgage is bundled up with a bunch of other busted mortgages and sold at a deep discount from par. Say the price of the loan package is 40 cents on the dollar. Now finally assume that the property can be sold at an auction level price of $175,000.

If you add up all my assumptions you get a situation where the mortgage is purchased for $100k (250*.4) and the actual value of the assets securing the mortgage is worth $175k. That 75k for a “flip” is big money if there is a lot of them to be done.

What I describe is happening in very big numbers. Busted whole mortgage loans are being packaged and sold to investors to the tune of at least $10b a month. Some of the biggest players on Wall Street are in the game of arbing the sellers. Packages are regularly being put together and sold. Who are these sellers? A lot of the banks. The big ones have sold large amounts, the smaller banks have sold regional portfolios at distressed prices. But by far and away the biggest sellers that have created the “profit window” all reside in D.C. A big seller has been the FDIC. Fannie, Freddie and FHA have also been steady sellers.

I think we've just seen the tip of the iceberg regarding what's really going on in the housing market and particularly with foreclosures. The scenario the author of this article describes is one explanation of what is happening to the so-called "shadow inventory."

It seems that greed and making big profits always finds a way no matter the situation...not much profit to be made in truly helping homeowners.

Posted via email from JanO's Posterous

 

Are you a Las Vegas area homeowner facing a possible foreclosure and wanting to learn more about your options?  Contact Us Today for a no obligation Las Vegas short sale consultation.

Jan O’Brien is an expert with the Las Vegas short sale process.   She is the co-author of the Certified Foreclosure Alternatives Consultant designation course.   Call Jan direct at 702-858-9191 to schedule a Foreclosure Alternatives Consultation today.

Considering a Las Vegas Home purchase?  Search all Las Vegas Homes for Sale using our free, interactive map-based search.

Search all Las Vegas Foreclosures, including Henderson, Green Valley and North Las Vegas bank-owned homes.

Las Vegas Real Estate Professionals: Become a Certified Foreclosure Alternatives Consultant (CFAC)Check the schedule for upcoming class dates.

 

Join the WBNL Coaching Wanderers Club - The online, virtual coaching and training platform for Real Estate and Business Professionals.

Your basic, FREE membership includes:

WBNL Coaching Real Estate Business Plan Online Course and Downloads


How to Improve Your Credit Score (FICO)

Image representing Trulia as depicted in Crunc...Image via CrunchBase

Tara-Nicholle Nelson of Trulia in this post 6 Quick Fixes for your Credit Score provided some great tips in answer to this question:

What do you advise a financially fit homebuyer to do to increase their credit score or make themselves more attractive buyers, to qualify for the lowest mortgage rates?

Here is a summary - read the full blog post at 6 Quick Fixes for your Credit Score

1.    Pull your reports online – get them for free, no strings attached, at the government authorized website AnnualCreditReport.com.  This doesn’t get you your actual FICO scores, but it does get you the content of your report.

2.      Consider reopening accounts you thought were open but have been closed because you haven’t used them in so long - it will help boost your utilization ratio. 

3.      Pay down some debt.  This both decreases your debt-to-income ratio (36% is the goal, including the proposed mortgage payment) and increases your credit score, if you do it right (see the next tip).

4.     Don’t close any accounts.  Instead, spread your debt out. The ideal utilization ratio is about 20-30% of your available credit overall, and on any given account. 

5.     Use your credit regularly – and pay it on time, every time:  FICO scores are a measure that shows that you have a history of responsibly using and managing and repaying your debt on an ongoing basis.

6.      Finally, check in with your mortgage broker.  Have them pull your report and score. If you’re really close to a score level higher, that would empower you to qualify for a lower rate, they can actually run a credit diagnostic on your score and generate some recommendations for which actions you could take to raise your score by the needed few points.

 

Are you a Las Vegas area homeowner facing a possible foreclosure and wanting to learn more about your options?  Contact Us Today for a no obligation Las Vegas short sale consultation.

Jan O’Brien is an expert with the Las Vegas short sale process.   She is the co-author of the Certified Foreclosure Alternatives Consultant designation course.   Call Jan direct at 702-858-9191 to schedule a Foreclosure Alternatives Consultation today.

Considering a Las Vegas Home purchase?  Search all Las Vegas Homes for Sale using our free, interactive map-based search.

Search all Las Vegas Foreclosures, including Henderson, Green Valley and North Las Vegas bank-owned homes.

Las Vegas Real Estate Professionals: Become a Certified Foreclosure Alternatives Consultant (CFAC)Check the schedule for upcoming class dates.

 
 

Discover the power of business coaching – Book a Free 30-minute consultation with Jan


FHA Loans - New Mortgage Insurance Premiums Effective 10-4-10

 

An assortment of United States coins, includin...Image via Wikipedia

FHA Mortgage News and Updates

Many investors in the Secondary Markets have INCREASED the Minimum FICO requirement for an FHA insured loan from 620 to 640 Effective 10/4/2010.

This change is likely to be quickly adopted by Secondary Market investors on a widespread basis.

FHA Upfront and Annual Mortgage Insurance Premium (MIP) Changes

Effective with case numbers assigned on or after October 4, 2010, FHA Upfront and Annual MIP will change as follows:

  • Upfront MIP will be 1.00% on all mortgage terms
  • Annual MIP will be 0.90% for LTVs greater than 95% for mortgage terms greater than 15 years
  • Annual MIP will be 0.85% for LTVs less than or equal to 95% for mortgage terms greater than 15 years
  • No change to Annual MIP for mortgage terms less than or equal to 15 years

  FHA-MIP

Tammy Harrison

702.234.3185 direct
888.917.2009 Toll Free E Fax
tammy@LVcredit.com

Residential Mortgage Services
3585 E. Flamingo Rd., Ste 103
Las Vegas, NV 89121
702.796.3453 main office

 

Are you a Las Vegas area homeowner facing a possible foreclosure and wanting to learn more about your options?  Contact Us Today for a no obligation Las Vegas short sale consultation.

Jan O’Brien is an expert with the Las Vegas short sale process.   She is the co-author of the Certified Foreclosure Alternatives Consultant designation course.   Call Jan direct at 702-858-9191 to schedule a Foreclosure Alternatives Consultation today.

Considering a Las Vegas Home purchase?  Search all Las Vegas Homes for Sale using our free, interactive map-based search.

Search all Las Vegas Foreclosures, including Henderson, Green Valley and North Las Vegas bank-owned homes.

Las Vegas Real Estate Professionals: Become a Certified Foreclosure Alternatives Consultant (CFAC)Check the schedule for upcoming class dates.

 

Visit www.WBNLCoaching.com to learn more about our coaching program and online training membership options. Your FREE, basic membership includes a complete real estate business-planning course and downloads.


Facebook does 5-for-1 stock split - Oct. 1, 2010

Facebook said Friday that it is doing a 5-for-1 stock split, marking the third split in the company's history. The privately held social networking company, founded in 2004, previously executed 4-for-1 stock splits in 2006 and 2007.

Facebook's shares won't have a clear market value until the company goes public -- a move that's not imminent.

Just saw The Social Network movie last night... and it is a classic story for the ages... greed, jealousy, betrayal and it's impact on friendship and love.

Go see it - even if you're not on Facebook!

 

Join the Wanderers Club for $67/mth membership fee to access all of the member benefits including monthly training webinars, group coaching sessions, online training courses, private Facebook and LinkedIn Groups.

FREE Basic membership is free and includes:

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Posted via email from JanO's Posterous


Meet the new Twitter.com

The new Twitter design is in Preview phase - soon to be switched for all users. I like several of the new features..easy to embed photos, videos; related content; see mini-profiles without leaving your page

Visit www.WBNLCoaching.com to learn more about our coaching program and online training membership options. Your FREE, basic membership includes a complete real estate business-planning course and downloads.

Posted via email from jan obrien's posterous


Ask The Attorneys - FREE Event October 13th

ASK THE ATTORNEYS!
Free to first 50 registrants!

Time: October 13, 2010 from 9am to 12:30pm
 

Location: iMortgage 9139 W. Russell Rd., #100, Las Vegas, NV 89148
(Johnson, Jacobson, Wilcox Bldg.)
215 & W. Russell Rd. take Jerry Tarkanian Way to W. Oquendo Rd. into the Desert Canyon Business Park


Organized By: Steven Kitnick Seminars, LLC

BRING YOUR CLIENTS!

Event Description:
Join Attorney Mickey Bohn and Attorney Robert Noggle in a discussion on the Nevada Foreclosure Mediation Program. Mickey is a mediator and Robert represents clients in Mediation. Get a bird's eye view! They will also entertain general questions about short sales, foreclosures, tax issues, bankruptcy, & asset protection. Steven Kitnick moderates.
 
To Register, go to: www.shop.stevenkitnickseminars.com or call (702) 255-8722
 
 

Join the WBNL Coaching Wanderers Club - The online, virtual coaching and training platform for Real Estate and Business Professionals.

Your basic, FREE membership includes:

WBNL Coaching Real Estate Business Plan Online Course and Downloads