FHA Relief Program HOPE Starts Today--October 1, 2008

As part of the Relief Program, passed by Congress and signed into law on July 31, 2008:

The HOPE for Homeowners (H4H) program was created by Congress to help those at risk of default and foreclosure refinance into more affordable, sustainable loans. H4H is an additional mortgage option designed to keep borrowers in their homes.

The program is effective from October 1, 2008 to September 30, 2011.

As many as 400,000 homeowners could avoid foreclosure through this program over the next three years. If you are having trouble making your mortgage payments, HOPE for Homeowners may be able to help you, by refinancing your loan into a new 30-year fixed rate loan with lower payments.

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If you want more information on Short Sales & Bank-Owned Properties, visit Understanding Foreclosures Las Vegas.

Myths about Foreclosures from Home Ownership Preservation Foundation

The Home Ownership Preservation Foundation helps home owners stay out of bankruptcy. Their site is worth visiting. We especially liked the Myths:

MYTH: My mortgage company would rather foreclose on my home than keep me in it. The mortgage company sustains an average loss of about $58,000 when foreclosure occurs (TowerGroup study). They are in the business of providing mortgages - not owning or selling homes - and would always prefer to keep you in your home. By calling the Homeowner's HOPE Hotline™ at 888-995-HOPE, we'll help you work with your mortgage company to pay back your loan and stay out of foreclosure.

MYTH: I’m getting many offers of “help” from a variety of different people. Are they all scams?

Because of the public nature of foreclosures, anyone is able to access foreclosure listings on a daily basis. These include the owner's name and address at the very least, and in some states, they could include other sensitive information. Armed with this data, scammers can take advantage of a desperate owner. Here's what to look for to avoid foreclosure scams:

1. Your home's ownership changes hands. A common scam is where a party buys your home, then lets you rent it back. It sounds good at first, but you're losing your property, and your new landlord can now legally kick you out of your home with little to no notice.

2. You're asked to pay something up-front and/or you're asked to stop making mortgage payments. Usually, these scams involve paying large sums of money to some sort of "foreclosure prevtention service." These services offer to do what our counselors do: counseling, a budget and approaching the mortgage company to consider a payment plan. But the services don't do always do this work thoroughly, or follow through at all. The most important thing to remember when it comes to any foreclosure service is this: Foreclosure advice and direction should always be free.

3. You're under pressure to act immediately. Some will prey on the stress and anxiety surrounding the foreclosure process by convincing owners to sign things they don't understand. Don't sign anything without either first talking to an attorney, your mortgage company or a nonprofit foreclosure prevention organization like the Homeownership Preservation Foundation.

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If you want more information on Short Sales & Bank-Owned Properties, visit Understanding Foreclosures Las Vegas.

Short Sales and Your Credit Score

From a great article on Short Sales & Credit:

It is quite possible to do a short sale and still have decent credit afterwards. When you do a short sale, you can sometimes negotiate with the bank about two major issues: how they report your credit, and how whether they can go after you later for their financial losses.

The reason you can sometimes negotiate this is that you are not letting your house go through the foreclosure process and leaving it to the bank to deal with. When you do a short sale you are helping the bank. You are getting rid of a problem for them.
Most people don't realize that when they tell the bank that they are not going to be able to pay their mortgage anymore, the bank has a problem. And by selling the house, you are saving the bank tens of thousands of dollars they would otherwise spend going through the foreclosure process, getting the house back and fixing it up, marketing it and selling it.

Since you are doing this for the bank, you can make some requests in return. Especially if you have someone sharp helping you with the short sale.

If you want more information on Short Sales & Bank-Owned Properties, visit Understanding Foreclosures Las Vegas.

Short Sales Help Homeowners Avoid Foreclosure

This is an article from last year about Short Sales. While the market has change, the concept is still the same: Selling Short hurts, but not as much as foreclosure.

If you want more information on Short Sales & Bank-Owned Properties, visit Understanding Foreclosures Las Vegas.

Foreclosure and Bankruptcy

RealtyTrac has great information regarding how bankruptcy can sometimes save your home from foreclosure:

If you file for personal bankruptcy under Chapter 7 a so-called "automatic stay" is placed on all your creditors, including the foreclosing lender, by the court. HOWEVER, the stay is only a temporary fix to the situation.

Chapter 7 never permanently stops home foreclosure. It only gives you relief from unsecured creditors like credit cards and prevents certain creditors from pursuing collection action against you. It does NOT discharge debts such as taxes, child support, alimony or student loans, nor can it give you relief from other secured creditors — like your lender — whose debt is secured by the home you're living in.

In fact the "automatic stay" is only effective so long as the court wants it to be in place. At any time the court can grant your lender's motion for "relief from the automatic stay." Once the court grants that motion the foreclosure against your home can proceed to conclusion.

One viable exception does exist, however, by filing for a Chapter 13 bankruptcy. Under Chapter 13 you are allowed to sit down with your creditors and arrange a payment plan to pay back what you owe them over a given length of time and usually on a lower payment schedule. Once accepted, the creditors, like your lender, must abide by the terms of the plan.

…In essence, then, through a Chapter 13 debt reorganization plan you can cure the default and save your home. However, you must realize up front that not everyone qualifies to file for bankruptcy. There are certain threshold qualifications that must be met which were tightened up when the U.S. Bankruptcy Code was revised a few years ago.

Read more...

If you want more information on Short Sales & Bank-Owned Properties, visit Understanding Foreclosures Las Vegas.

Nevada Foreclosure Laws

RealtyTrac has a great resource on understanding forclosure laws in Nevada.

If you want more information on Short Sales & Bank-Owned Properties, visit Understanding Foreclosures Las Vegas.

Recession Talk and Buyer's Concerns

It has been said that a recession is when my neighbor loses his job and a depression is when I lose mine. Lately one can substitute the word "house" for "job" and probably echo the sentiments of a number of people in the current economy.

Experts seem to be having trouble deciding if we are or will be soon in a recession.

But whether we are or not, talk of recession can make homebuyers weary. So below we are addressing five concerns that buyers might have in this market.

Concern # 1: Bad Market Conditions

Everyone knows the housing market is facing challenges, but what many people may not understand is that homebuilding is a cyclical business. The last housing downturn occurred in the late 1980s and early 1990s. New home sales began recovering in 1992 and continued growing until the next peak in 2005.

Most people have heard the saying "Buy low, sell high." Right now it is a buyer's market -- that means you can get more for your money! You have more choices, more value, more design features, lower interest rates and more loan programs to choose from.

Keep in mind though that the market can change at any time. Waiting could mean missing out on opportunities. We are already seeing an increase in competition for buying homes in the Greater Las Vegas area. Why wait for prices and interest rates to go up when you could be living in the home of your dreams right now?

Concern #2 -- Dropping Home Values

Despite short-term market cycles and fluctuations, long-term home values have increased historically. On average, the value of a home nearly doubles every ten years, according to research from the National Association of REALTORS®. And the Federal Deposit Insurance Corporation reported that between 1978 and 2003, the nationwide House Price Index grew an average of 5% per year.

These statistics are sound reminders that home-buyers should keep their long-term goals in mind. While today's market may not be optimal for investors seeking a quick turnaround profit, it could be an ideal window of opportunity for people seeking a place to live out their lives and build memories, dreams and futures.

In addition, by having so many choices in this market, you can enhance your investment by choosing features that will add re-sale value later. The current market provides opportunities for creating a lot of "sellability" into your home that will not only make it easier to re-sale later, but will make it enjoyable to live in now.

Finally, if you are an investor, this market provides a nice basis for long-term investments with an opportunity to take advantage of tax shelters and a growing rental home market in the meantime. Quick-flip investments are not advised in this market, but the long-term picture is still advantageous for the portfolio.

Concern #3 Selling Current Home

Although selling a home can be difficult in today's market, there are many things you can do to help your home stand out from the rest. Staging a home is a great place to start. From strategically arranging furniture to adding warm and stylish accents, staging is all about making the home feel inviting an allowing others to imagine living there.

Home inspections are also important. Addressing problems before putting a home on the market can add value way beyond the cost of the inspection and the fixes.

If you want to wait out the market and sell later, turning your home into a rental might be the best way to go. This doesn't work for all properties, but most homeowners are not aware of the potential their homes have to rent or the tax advantages of doing so. Finding the right tenant is key.

In any case, working with a professional Realtor® who has experience in turning homes into investments can make all the difference. If you want to take advantage of the market by moving into a home more in tune with your dreams, selling your current home doesn't have to be a hindrance.

Concern #4 Negative News Coverage

Homebuyers today are flooded with national economic news that is not necessarily representative of their local market. Every area is different. Even neighborhoods within a given area are different. Las Vegas has been and remains very different from the nation.

Realtors® know local markets and relying upon one with that knowledge can make the difference between a good or bad investment. We know and can educate you in local economies, employment, schools, transportation, amenities and communities.

Concern #5 Making a Bad Investment

If you are currently renting, you should learn about the potential tax benefits of homeownership. Paying rent each month makes no financial investment in your future. Buying a home invests in your future.

There are also many lifestyle benefits drawn from homeownership. When you buy a new home, you're investing in something far more valuable than any stock or bond can offer. You're investing in memories. A home is a place to throw dinner parties, hold game nights and host sleepovers; it is a place to play a game of catch in the backyard or sit on the front porch and watch the neighborhood kids play.

In this market, homeownership is more affordable than it has been in years. First-time buyers may not be able to take advantage of these prices for long. Now is a good time to move from rental to homeownership.

THE DULCIE CRAWFORD GROUP has considerable expertise in the Las Vegas/Henderson real estate market. 2008 is a great year to buy a house in our area. Feel free to contact us if you want to know more about the local market and explore whether it is time to buy, sell or convert a home.

Our thanks to Richmond American Homes as a major source for this article.