They have since been resistant and perhaps even defiant in wanting to proceed with foreclosures.  That is the concern.  Will the banks allow these additional requirements to impede their ability to get homes to market?  While they may not be pleased with the process and it will cost them more time and money, I think they will get their procedures in order and eventually we will see the market stay on its course.

That means that while we are in the holiday season and approaching a new year, the number of foreclosures will remain low, but they will pick up in the first or second quarter of next year and the inventory will continue to remain at the levels we have seen in the last 30 months.

The impact on homeowners desiring desire to short sale their homes is still unclear, but the banks have all concluded that short sales are far more favorable than Foreclosure and this legislation will certainly not change that opinion.

When we receive a low offer on our listings, we will counter back to a price that we deem a good value to the buyer and reasonable to the lien holder.  We also counter out the costs that we know the lien holder will not allow and we counter with information to the buyer and buyer’s agent that enables us to know that the buyer fully understands the nature of short sales.  Sometimes the buyer decides to reject our counter.  That’s OK because it’s likely that buyer wasn’t going to be patient enough to endure the process.  We would rather leave the home on the market to attract another buyer that will endure and help us to close the escrow.  If the buyer agrees to our counter offer, then we know we have a quality buyer that will be there when we get an approval from the lien holder.

When I’m working with a buyer that chooses to make an offer on a short sale, I will pull the comparable sales to evaluate the fair market value just like the lien holder will do upon receiving the offer.  This gives my buyer the information well ahead of a counter we may get later in the process.  My buyer will be prepared for the idea that the lien holder will likely counter back at a number that is close to fair market value and my buyer is prepared to accept that counter and proceed.  If the lien holder doesn’t counter and accepts my buyer’s offer, even better!  My buyer gets the great deal!

There are many lessons that can be drawn from this near calamitous experience. What I find fascinating is that singularly each occurrence: a pedestrian crossing a street, vehicles entering this particular seldom used intersection, would be routine and uneventful. However when each happening occupies the same space and time the outcome is dramatically altered.

The real estate market in Las Vegas is an example of a convergence of seemingly ordinary and innocuous events in a business environment that was deemed for years to be safe and bullet proof. The outcome created has been near fatal to our financial security. A slow down in construction, a rising unemployment, a diminished tourist trade, non diversification of the local economy, singularly these economic conditions could have been dealt with, but collectively created a Titanic event.  We have experienced all the conditions that feed upon themselves and aggravate the spiraling conditions. Local, state and federal governments have yet to address the causative factors but work on peripherals that prolong the conditions and expend diminished monetary resources unwisely. Our time will soon expire to effectively create change. We must seek out and support leadership that has the interest of populace, demonstrate sound economic beliefs, and are not motivated for personal and political gain.

I promise to keep this newsletter helpful and upbeat. I have come to the conclusion long ago that I have no control over what is beyond my abilities to change. Simple approaches provide best solutions. This was reinforced recently from a well-trusted client that had gone through many family difficulties and had experienced severe financial set backs at the same time. They came through not unscathed, but emerged with their family and finances intact. They also gained constructive life lessons that were an example for others to emulate. As I said, the process was simple: they learned to refocus and trust. They chose to seek what was positive and good in their lives and not dwell on negative and unmanageable events. Similar to the old adage of dwelling on the one half glass filled. It is a process they approached with sincerity and resolve. They achieved it only by introducing the most important factor. Trust in a higher power that will provide inspiration; trust in themselves and their ability to overcome adversity; and, trust in their family and friends who surround them with their love and support… More meaningful life experiences that need to be told.

Traditionally, April starts the season of preparation for the school aged families and retirees contemplating a household move to our City. It is now serious time for those who have been vacillating between their desires to achieve home ownership and the financial capacities to match those wishes. For existing homeowners, April marks the perfect time to “spruce-up” your property with a little yard cleanup, paint or even a landscaping makeover. This truly is the time to maximize the exposure of your property. I have many simple, low cost ideas of how to add value to your property, or if you are ready, to prepare it for sale.

The real estate picture to some is bleak; to others it once again presents opportunity. Investment perspective, insensitivity to risk aversion, and timing influence our real estate decisions today more than ever. No one can afford to make an ill-conceived financial move of this magnitude. The ability to recover from poor decisions may take a lifetime, or for some will never be achieved. Now more than ever, the perspectives of those who have experienced the ups and downs of this outrageous market are invaluable.

When I began writing this article my intent was not to commercialize the services of the Realtor. However, I have seen over the years that people who have been successful in business and investments surround themselves with those that they trust and have the expertise to provide constructive, objective and knowledgeable advice. It is no different if your intentions are to sell, buy, or even rent property in today’s market. Take advantage of the know-how that is available to you, even if you believe that an individual situation is beyond the abilities of the real estate professional. Keep in mind that they also surround themselves with the best available experts that support the industry and are available to facilitate and most importantly “make clear” your decision path.

Each state has different rules regarding deficiency judgements, but here in Nevada, the banks can file deficiency judgements on either a foreclosure or a short sale.  They have more time on first trust deeds when you do a short sale but the time they have on seconds or HELOCs is the same with either a short sale or a foreclosure.

Ultimately each individual homeowner must evaluate their own circumstances to make the correct decision, but remember that just because you go through bankruptcy doesn’t mean that foreclosure is your best option.  Please consult with your attorney and remember you can choose your own Realtor to do the sale and you should select someone with good experience at short sales and someone that has a good record of success with short sales.

I heard a statement from an attorney friend of mine recently and I thought it quite poignant: “Short Sales aren’t about homes or about mortgages, they are about life and moving forward”.

The important facts to remember as a homeowner are that HAFA: is only for owner occupied properties, does not apply to second mortgages, can only be employed after loan modification has been pursued (HAMP),  only applies to loans originated before 2009 and does have specific timelines.  Having said that, homeowners need to know that even if they aren’t HAFA eligible, they can and in a lot of cases should still pursue Short Sale.

Remember to consult with an expert in Short Sales and to get help from a qualified attorney and/or accountant.  I do extensive work with a network of accountants and attorneys and I find it ever so valuable to my clients to continually reach out to those experts.

 As I write the May Newsletter, I am sitting here at my office desk, looking out the spacious window that views a flowering plum tree and a multitude of blossoming shrubs and trees whose names have long escaped me. I am quite fortunate to have an office that allows me to keep in touch with the beauty of the outdoor landscape. This view has inspired me on many an occasion.

Today the sun is shining brightly, the sky is peppered with beautiful cumulus clouds that seem to be stuck in slow motion, I can even hear a passing covey of quail that are well hidden from sight, but have made their presence known with their distinctive calling. The desert is truly a beautiful place to live and work!

What is so unique about today is that when I turned on the radio to capture the latest financial headline, all I heard were warnings about our dire circumstances nationally and particularly for Southern Nevada. When you drill down to the sources of reporting, you find bits of truth designed to capture your attention, but they contain little substance or veracity. Real estate is normally at the focus of these commentaries. If you believe these forecasters of economic gloom, owners would never sell their house; renters would never become first time buyers; and investors would park their disposable cash in cd’s and wait for the next decade to take risk.

 Oh, by the way, the weather forecast for today was for thunderstorms and high winds; another forecast gone awry.