Cyber-Shopping Revolutionizing Real Estate

Nothing short of a revolution is occurring in Real Estate. In the past few years, homebuyers have discovered the Internet and now most of them turn to cyberspace to start their home searches.

Henderson, NV (PRWEB) April 11, 2008 -- Clouded by headlines of bursting bubbles, subprime crises and economic stimulus packages, one may not have noticed that nothing short of a revolution is occurring in Real Estate. In the past few years, homebuyers have discovered the Internet and now most of them turn to cyberspace to start their home searches.

The largest and most visited site is Realtor.com®, which, according to Alexa's web statistics, sees an average of 500 million visitors a month. Las Vegas and Henderson zip codes are among the most searched on that site as well as a number of other sites available for home searches, with an average of 4.9 million homes viewed per month for Henderson/Boulder City alone.

"We have changed our advertising significantly in the past few years. It is a global economy now. Las Vegas is a place of major interest around the world and the Internet is where investors and homebuyers from all over the world can narrow their search and find the agent who can help them understand the local market," says Dulcie Crawford of Windermere Prestige Properties, recipient of Realtor.com®'s "Real Estate Online Marketing Award of Excellence."

The Award of Excellence recognizes top agents who consistently provide great marketing services on behalf of their buyers and sellers.

"There are always some real estate agents who distinguish themselves from other agents by doing a little more for their sellers. In particular; when the home they are selling is placed on a well trafficked site such as the 1st ranked REALTOR.com®, even simple efforts like having more photos displayed, crafting better descriptions or adding a full motion video, can make a home stand out from competing properties," says Max Pigman, Vice President of REALTOR.com®.

Pigman presented the excellence award to Crawford and other Las Vegas area Agents at a recent real estate marketing and technology seminar that demonstrated cutting edge techniques for leveraging the Internet and technology in real estate marketing.

"The extra steps agents like Dulcie are taking on behalf of their clients is the reason we thought it worthwhile to call out the effort we have seen these agents make online and to recognize them for providing these added value services," says Mr. Pigman.

"Internet marketing can make all the difference for sellers who are facing stiff competition in the current market," says Crawford, a native Las Vegas, who has had over 10 years experience in Real Estate. "My job has always been to help buyers and sellers find each other so that they both can benefit from the transaction. Buying and selling homes can be overwhelming at times, but when the right buyer finds the right home, the transition for both seller and buyer can be smooth and satisfying. A tool like Realtor.com® makes that job easier for me because it opens up the possibilities for both the seller and the buyer."

For more information on the award: http://www.rdcworkshop.com/

Credit Score Truths and Tax Myths of A Short Sale Vs. Foreclosure

A Great Summary by Aaron Gordon of some of the issues regarding the decision between selling short and going into foreclosure.

Some Highlights:

#1) WILL MY CREDIT SCORE DROP LESS IF DO A SHORT SALE INSTEAD OF A FORECLOSURE?

The short answer is "don't count on it." No one can answer this question for you correctly and that is because every case is different.

#2) WILL I BE ABLE TO BUY ANOTHER HOME QUICKER IF I DO A SHORT SALE INSTEAD OF A FORECLOSURE?

Once again, chances are no. Keep in mind, lenders make mortgage loans based on your ability and willingness to repay the loan. We determine this based, primarily, on your past credit history. Especially your past mortgage history.

#3) IS IT TRUE I AM NOT RESPONSIBLE FOR DEBT FORGIVENESS IN A SHORT SALE BECAUSE OF THE NEW MORTGAGE FORGIVENESS DEBT RELIEF ACT OF 2007?

First let say, IN BOLD, I am not a tax professional. It's of the utmost important that you seek the advice of a tax professional before proceeding with a short sale or foreclosure.

The Mortgage Forgiveness Debt Relief Act of 2007 was primarily started so that people, who were upside down in their homes, could refinance their home using an FHA loan and then the second mortgage holder would write off some of their loan to enable this. This kind of loan hasn't caught on because most lenders didn't go for it.

...The bottom line here is before you do this, meet with your accountant to discuss the ramifications. There are too many possibilities to go over here.

If you get a 1099-C form in the mail, after a short sale that looks like this, http://www.irs.gov/pub/irs-pdf/f1099c.pdf, you need to head to your accountant immediately.


#4) BASED ON ALL OF THIS, WHY WOULDN'T I JUST LET MY HOME GO INTO FORECLOSURE?
For one, because you are giving the lender a chance to recoup some of their money. It is far cheaper for a lender to negotiate a short sale with you and your buyer than it is to rack up attorney fees and other costs in a foreclosure.

Foreclosure can take eight months to a year and in a declining market, your decision could cost them $100,000's more than a short sale.

The next reason is because some believe, as we discussed earlier, it may be easier to rebuild your credit after the process. Your credit will likely be destroyed either way, but the road back to a respectable credit score may be shorter in a short sale, according to many experts.

Finally, and probably the top reason for a short sale, is depending on what kind of loan you have, and in what state, the lender may be able to go after you personally for a deficiency judgment at a later date. In Nevada, where I live, lenders have three months after the sale to try and obtain a deficiency judgment.

Click here to read the full article.

Dulcie Crawford Receives Award of Excellence in Online Marketing

On March 25, at their Marketing & Technology Workshop in Henderson, Nevada, Realtor.com named 22 Las Vegas area Realtors® as excelling in Online Marketing. We are proud to announce that Dulcie Crawford and The Dulcie Crawford Group were among those honored.

Feds are Lowering Rates, Again

Treasurys fall on rate cut, bank earnings
Bond prices sink as Wall Street cheers fed rate cut, stronger-than-expected earnings from beleagured banks.

NEW YORK (CNNMoney.com) -- Bond prices fluctuated Tuesday after the Federal Reserve cut interest rates and surprisingly strong earnings from Wall Street banks coaxed investors back into the stock market.

Read article here.

Economic Indicators are Stronger than Expected

There are some signs of hope that the banking & housing crises are passing...

Treasurys fall on rate cut, bank earnings
Bond prices sink as Wall Street cheers fed rate cut, stronger-than-expected earnings from beleagured banks.


Last Updated: March 18, 2008: 4:44 PM EDT
NEW YORK (CNNMoney.com) -- Bond prices fluctuated Tuesday after the Federal Reserve cut interest rates and surprisingly strong earnings from Wall Street banks coaxed investors back into the stock market.

The central bank lowered the fed funds rate, a key overnight bank lending rate, by three-quarters of a percentage point to 2.25%. The Fed has already slashed the fed funds rate by 2.25 percentage points since September to help stabilize the economy and ease conditions in the credit market.

Bonds were lower throughout the session Tuesday as stocks rallied. Shortly after the Fed's announcement, stocks trimmed gains as some investors were expecting a more dramatic rate cut, and bond prices rose modestly in response. Since then, bond prices have eased.

Earlier Tuesday, investment banks Lehman Brothers (LEH, Fortune 500) and Goldman Sachs (GS, Fortune 500) both reported earnings that beat Wall Street estimates, sending stocks sharply higher. The rally comes just one day after Bear Stearns (BSC, Fortune 500) shocked investors by agreeing to be sold to rival JP Morgan Chase (JPM, Fortune 500) for $2 a share.

Bears' dramatic fall raised fears Monday that the financial system was in serious danger. But the stronger-than-expected results from Goldman and Lehman helped to ease some of the concerns about the health of the financial services sector.

Investors tend to favor the security of government-backed bonds in times of economic uncertainty. Conversely, when there are signs that the economic climate is improving, investors prefer stocks.

The benchmark 10-year Treasury note fell 1 11/32 to 100 9/32 with a yield of 3.46%, up from 3.30% late Monday. Prices and yields move in opposite directions.

The 30-year long bond lost 1 7/32 to 100 12/32 with a yield of 4.35%, up from 4.28% late Monday.

The 2-year note dropped 13/32 to 100 26/32 with a yield of 1.57%, up from 1.35%.

Elsewhere, the government said Tuesday that initial construction of new homes fell in February, though by a smaller number than expected. Still, the housing report showed further decline in the number of single-family homes, which analysts say are the core of the housing market, undergoing initial construction in February.

The Labor Department's Producer Price Index (PPI), a key measure of inflation at the wholesale level, rose as expected in February. But core PPI, which strips out volatile food and energy prices, came in higher than expected.

First Published: March 18, 2008: 2:37 PM EDT CNN Money

NEW FHA LOAN LIMITS FOR CLARK COUNTY

This is big, big news! It opens the door to home ownership without having to have a lot of money to put down.

Here's a great article from Aaron Gordon (published with permission):

"FHA LOAN LIMIT RAISED TO $400K AND HOW THIS HELPS YOU"
March 6, 2008 (newsletter sent via email)

Today, the announcement came that the FHA loan limit in Clark County was raised to $400,000. This is great news for all of us and the market. In Nye County, it was raised to $325,000.

This makes 100% loans, all the way up to a sales price of $412,000, readily available for most buyers once again.

I know many of you haven’t done an FHA deal in years. It’s time to get a refresher course.

Some experts locally are predicting that 50% of all loans this year will now be done FHA.

If your preferred lender doesn’t do FHA today, you need to find one who does as a back-up. We have two designated FHA underwriters in our branch.

In my opinion, it is very important for your business today to have a lender who knows FHA and has local underwriting. Many FHA loans, that seem challenging, are ultimately decided by the underwriter.

I was asked to speak on FHA recently. I compared the process to how you would imagine lending was back in the day when you knew your banker, he knew you, and he made the loan based on his belief in you to repay the loan.

FHA underwriters usually look at the overall merits of the loan. If they believe in the borrower’s ability to repay, regardless of the borrower’s past, they usually have the leeway to make the loan.

If you would like someone to come speak to your office on FHA, please let me know and we will arrange that for you.

Here is what else you need to know.

FHA loans have very competitive interest rates because the Federal government insures the loans for lenders. In today's credit crunch, this single issue may outweigh all others.

FHA loans have lower down payment requirements. Plan on around 3%. You can get 100% gifted to you from a family member or seller for down payment and closing costs.

There is no “soft market” rule on FHA. 100% financing and gift can apply.

The mortgage insurance is usually less on FHA loans than conventional loans.

Primary residence only. Full documentation of income only.

Bankruptcy and foreclosure are looked at far differently.

You can be in a Ch. 13 bankruptcy and possibly buy a home or refinance so long as you have been making your BK payments on time for a year.

FHA wants to see you two years out of Chapter 7 BK. However, if you can show that it was an extenuating circumstance and prove that you have been solid since, you can sometimes get the loan only one year out of the Chapter 7.

Same with foreclosures. They want you to be three years removed from foreclosure before you are qualified. However, if the foreclosure was the result of circumstances beyond your control, you may be able to get a loan a year later.

Medical collections have to be addressed but usually not paid.

You can have a non-occupant co-borrower help you qualify.

You can get up to 6% seller help, on top of the 3% gifted down payment, for closing costs.

FHA isn’t credit sensitive. You don't have to have perfect credit to get an FHA mortgage. You don’t even have to have a credit score.

In fact, even if you have had credit problems, such as a bankruptcy, it's easier for you to qualify for an FHA loan than a conventional loan. You can have credit scores as low as 500, still put just 3% down, and get the same rate as someone with a 700 credit score.

Declining market areas do not affect FHA mortgages as they do conventional mortgages. There is no "soft market" appraisal rule that reduces loan to values by 5% or more.

FHA debt to income ratios are aggressive. Although the guidelines say they are at 31%/43%, these can go up to sometimes up to 40%/50% with good compensating factors like a good rental history, low payment shock, more down payment, lots of reserves, etc. I have even seen some go to 55% on a strong loan.

If your borrower has compensating factors, they can make even the most challenging borrowers acceptable.

There are a few things to be cautious of.

Many of the homes sold today are those owned by a bank that the bank acquired in a foreclosure. FHA currently has an anti-flipping rule in the first 120 days of acquisition and, although many banks are exempt, some transactions can be affected by this.

In addition, some banks won't accept offers from your FHA buyers.

The bottom line is today’s announcement clearly makes FHA the preferred loan choice for nearly every buyer unless they are looking for a home over $412,000 or they have to go with a stated income loan. It’s important to know.

Nehemiah Wins Court Support for Down Payment Assistance

Good news. The lawsuit brought by Nehemiah fighting a proposed US ban on seller-gifted down payment assistance won court support yesterday. Such down-payment assistance, a huge benefit for many homebuyers, will continue.