Lisa and Jim's Northern Nevada Real Estate Blog: Lisa Wetzel CDPE carsonvalleyland.com (RE/MAX Realty Affiliates)

New Home Warranty...Floodplain...Loan Mods  A Little Potpourri Today!

New home sales in Northern Nevada have been slow over the past couple of years.  Some new homes are selling for the first time even though they were constructed two to four years ago.  Buyers should be aware that the home may be owned by a lender that foreclosed on the property, and there is no New Home Warranty in place.  New Home Warranties are not automatically included in a new home sale transaction.  To be effective they must be in writing.  If you are buying an "old-new" home and aren't receiving a written warranty you likely don't have a warranty.   

Not having a warranty isn't necessarily bad, resale homes don't offer them with the exception of a Home Warranty Insurance policy.  You can buy such a policy for your "old-new" home.  That is a good idea since the appliances are likely out of warranty as well since most have but a year warranty.  Those policies run around $350 depending on the company and policy.  Not having a warranty isn't a reason not to buy, we just want to make sure you get what you think you bargained for.   

Another concern for Homeowners and Buyers today is the implementation of new flood maps in Douglas County.  They become effective this month.  These will primarily affect the east side of Carson Valley, and can have a very big financial impact on the property owner due to the dramatic increase in flood insurance cost in some instances, i.e.- from zero to $4-5,000 annually.  Even if you aren't looking in East Carson Valley beware of floodways in other areas.  FEMA is going around the country reassessing floodways and changing maps.  It recently happened in Lyon County as well.  It doesn't matter how "deserty" the property looks, it could be affected by a floodway floodplain status change in the future. 

Working on a loan modification?  Be advised that the lender can, and likely will, continue with their foreclosure process while negotiating with you.  They won't actually foreclose during the negotiations, but they will have started the clock ticking so you will have very little time for alternative options if your loan mod efforts are unsuccessful, or their terms are unacceptable to you.  Rather than give up and succumb to a foreclosure, be exploring other options during the loan mod process.  These can include a short sale which affords many positive benefits to you versus the ramifications of a foreclosure.  Check with your agent to make sure that your personal circumstances don't prevent you from effecting a successful short sale. 

Our advice:  Real estate isn't as simple as it once was.  Things used to be pretty much "what you see is what you get" and you could make a deal with a handshake.  It just isn't that way anymore and you must be proactive to protect your property and your pocketbook.  Look ahead, consult with a good agent.  Good agents will consult with you even if you aren't buying or selling today.  They understand that part of their job description is that of real estate counselor.  If they do a good job for you it is likely that you will refer them to a family member or friend in need of good professional services.  Don't be bashful - call a professional and discuss your real estate situation thoroughly - whatever it may be.

Real estate isn't as scary as it was in 2008.  Uncertainty in all aspects of the economy prevailed at that time, but now people seem to have confidence that the financial world isn't coming to an end and they are willing to move forward.  Embrace the mystery of real estate today, get the answers to the complexities of your situation, and move forward to your financial success and/or survival. 

When it comes to choosing professionals to assist you with your real estate needs... Experience is Priceless!  Lisa Wetzel & Jim Valentine, RE/MAX Realty Affiliates, 775-781-5472. carsonvalleyland@hotmail.com, www.carsonvalleyland.com

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Lisa Wetzel and Jim Valentine are the authors of this blog.  Lisa, Jim  and Jessie are experts in Carson Valley , Carson City and the tri-county area of Douglas County , Carson City and Lyon County.  Call our team anytime at 775-781-5472 or 775-781-3704.  To Search for Homes go to: Carson Valley Listing Book  or visit our website at www.CarsonValleyLand.com

Do Not Let Your Northern Nevada Home Go To Foreclosure Without Taking Every Step To Prevent It.  

If you owe more than your Dayton, Nevada Home is worth, you have as a Distressed Property.  Until recently, working with Distressed Properties was fraught with peril for agents, and owners were often told to "let it go", ie.- stop making payments and let the lender foreclose.  We'll spare you the horrific Short Sale experiences as well as our speculation as to why the lending industry was so slow to adapt to the need to cooperate with home owners and their agents.  Times have changed and Short Sales are now viable and should be given serious consideration.  

Unknown to most of us until about 18 months ago, Short Sales are now very common, and it is very important to understand their benefit to the homeowner.  Consider some of the following differences between the effects of a Foreclosure versus a Short Sale: 

•·  Credit Score:  A Foreclosure will lower your credit score 250 to over 300 points for over 3 years.  A Short Sale will show late payments, but the score will be lowered as little as 50 points, and the affect can be as brief as 12-18 months. 

•·  Credit History: Foreclosure will remain on credit history for 10 years or more. Short Sale is not reported on a credit history as there is no specific reporting item for "Short Sale".  Foreclosure remains on public record forever as it is recorded. 

•·  Employment: Employers often actively check credit of employees in sensitive positions - especially security clearances (Military, Police, Public Communication, Public Utilities, etc).  Foreclosure can result in immediate reassignment or termination if employed, or can prevent you from being hired if you are looking for work.  A Short Sale is not reported on credit report ... is not a challenge to employment. 

•·  Deficiency Judgment: In a Foreclosure the bank has the right to a deficiency judgment.  Some successful Short Sales provide for the lender to give up the right to a deficiency judgment.  If a deficiency judgment is pursued the Short Sale's higher yield from the sale results in a lower potential judgment amount. 

•·  Future Fannie Mae Loan: After Foreclosure you'll be ineligible for a Fannie Mae backed loan for 5 years.  Short Sale - 2 years.  

•·  Future Loans: For 7 years you will be asked on your application if you have had a foreclosure, but there is no similar declaration regarding a Short Sale.    

Our Advice:  There is now a designation known as Certified Distressed Property Expert that has been earned by local real estate agents to help Sellers and Buyers of Distressed properties.  Also Look For Agents who have completed  the SFR Certification. 

If you have cash flow or moving issues, we suggest you get professional help to assess your situation, determine alternative options, and make an action plan.  The world of Short Sales and Foreclosures has changed from the frustrating mass confusion that it was to today's smoother processes with positive results.  Though there is still frustration and emotion, help is available to you that can help you establish and achieve your goals through the confusing maze. 

Whether getting the financial elephant off your back, moving to put the family together, or other bona fide reason for selling ... if you have a Distressed Property get with a Certified Distressed Property Expert and take control of your future.  Foreclosure is the last option...do what you can to avoid it.   

When it comes to choosing professionals to assist you with your real estate needs ... Experience is Priceless!  Lisa Wetzel, CDPE SFR Certified & Jim Valentine, RE/MAX Realty Affiliates, 775-781-5472, carsonvalleyland@hotmail.com, www.carsonvalleyland.com

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Lisa Wetzel and Jim Valentine are the authors of this blog.  Lisa, Jim  and Jessie are experts in Carson Valley , Carson City and the tri-county area of Douglas County , Carson City and Lyon County.  Call our team anytime at 775-781-5472 or 775-781-3704.  To Search for Homes go to: Carson Valley Listing Book  or visit our website at www.CarsonValleyLand.com

Do Not Let Your Northern Nevada Home Go To Foreclosure Without Taking Every Step To Prevent It.  

If you owe more than your Nevada Home than it is worth, you have as a Distressed Property.  Until recently, working with Distressed Properties was fraught with peril for agents, and owners were often told to "let it go", ie.- stop making payments and let the lender foreclose.  We'll spare you the horrific Short Sale experiences as well as our speculation as to why the lending industry was so slow to adapt to the need to cooperate with home owners and their agents.  Times have changed and Short Sales are now viable and should be given serious consideration.  

Unknown to most of us until about 18 months ago, Short Sales are now very common, and it is very important to understand their benefit to the homeowner.  Consider some of the following differences between the effects of a Foreclosure versus a Short Sale: 

•·  Credit Score:  A Foreclosure will lower your credit score 250 to over 300 points for over 3 years.  A Short Sale will show late payments, but the score will be lowered as little as 50 points, and the affect can be as brief as 12-18 months. 

•·  Credit History: Foreclosure will remain on credit history for 10 years or more. Short Sale is not reported on a credit history as there is no specific reporting item for "Short Sale".  Foreclosure remains on public record forever as it is recorded. 

•·  Employment: Employers often actively check credit of employees in sensitive positions - especially security clearances (Military, Police, Public Communication, Public Utilities, etc).  Foreclosure can result in immediate reassignment or termination if employed, or can prevent you from being hired if you are looking for work.  A Short Sale is not reported on credit report ... is not a challenge to employment. 

•·  Deficiency Judgment: In a Foreclosure the bank has the right to a deficiency judgment.  Some successful Short Sales provide for the lender to give up the right to a deficiency judgment.  If a deficiency judgment is pursued the Short Sale's higher yield from the sale results in a lower potential judgment amount. 

•·  Future Fannie Mae Loan: After Foreclosure you'll be ineligible for a Fannie Mae backed loan for 5 years.  Short Sale - 2 years.  

•·  Future Loans: For 7 years you will be asked on your application if you have had a foreclosure, but there is no similar declaration regarding a Short Sale.    

Our Advice:  There is now a designation known as Certified Distressed Property Expert that has been earned by local real estate agents to help Sellers and Buyers of Distressed properties.  If you have cash flow or moving issues, we suggest you get professional help to assess your situation, determine alternative options, and make an action plan.  The world of Short Sales and Foreclosures has changed from the frustrating mass confusion that it was to today's smoother processes with positive results.  Though there is still frustration and emotion, help is available to you that can help you establish and achieve your goals through the confusing maze. 

Whether getting the financial elephant off your back, moving to put the family together, or other bona fide reason for selling ... if you have a Distressed Property get with a Certified Distressed Property Expert and take control of your future.  Foreclosure is the last option...do what you can to avoid it.   

When it comes to choosing professionals to assist you with your real estate needs ... Experience is Priceless!  Lisa Wetzel, CDPE SFR Certified & Jim Valentine, RE/MAX Realty Affiliates, 775-781-5472, carsonvalleyland@hotmail.com, www.carsonvalleyland.com

 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Lisa Wetzel and Jim Valentine are the authors of this blog.  Lisa, Jim  and Jessie are experts in Carson Valley , Carson City and the tri-county area of Douglas County , Carson City and Lyon County.  Call our team anytime at 775-781-5472 or 775-781-3704.  To Search for Homes go to: Carson Valley Listing Book  or visit our website at www.CarsonValleyLand.com

Buying A Nevada Short Sale The Smart Way!  

Short Sales in Northern Nevada are here to stay ... for awhile.  While they are here we should all learn to deal with them to accomplish our goals.  Real Estate Agents need to serve their customers, Sellers need to sell, and Buyers want and should make a good purchase.  The Short Sale has become a reasonable way to accomplish everyone's objective when done right.  Do it the smart way. 

It is important to understand that not all Short Sale situations are equal.  The lender approving the SS is a critical component of a smooth SS transaction.  Some are absolutely terrific to work with, reasonable, efficient and quick with their decisions to such an extent that the transaction will seem almost normal.  A co-worker recently shared that he obtained SS approval in ten days and the escrow will close a total of thirty days after the initial acceptance.  That's a good lender to work with. 

Most lenders are improving their systems to expedite the SS process.  Even the foreboding BofA SS process has recently been changed to an Internet portal system with noticeable improvement in their response time and demeanor.  Most lenders have come to appreciate the benefits of the SS and are much more willing to work in a positive way to achieve them.  Be sure to find out which lender has the loan on the home before you make a SS offer.  Is there only one lender, or is there a Second?  If there is a Second the agents must find out how much the First will give the Second ... and how much the Second will accept.  This is critical and will tell you early on if there is a chance to make the SS work. 

Buyers and Sellers must be committed to the SS process.  It can take time and be frustrating.  The Seller must provide a lot of documentation which can be frustrating.  We've seen many Buyers hang in until just before the lender approves the sale.  They pull out just as they could accomplish their goal even though they were warned of the extended waiting period that could be experienced.  That is good news to the next Buyer as the sale has already been approved at that point.  We've gone in at that point with a Buyer and had SS approval in five days!  It is all timing.  Be committed. 

You can buy a property that is very close to foreclosure if you act quickly!  We've effected Short Sales on several homes with less than a week to go before the foreclosure sale and succeeded in stopping the sale, putting the sale together, and having happy Buyers and Sellers.  Be ready to act and be thorough when you do. 

Our Advice:  Buyers should make sure the agent they are using is knowledgeable and enthusiastic about Short Sales.  If the agent isn't showing you a SS property on principle, is he really working for you if one of the properties omitted from your tour sheet is the right one for you?  The agent must know the SS vocabulary, be familiar with the SS offer structure, know the timing and expectations of all parties including the lender, and... be willing to do the work.  Don't try to steal the property - you can't, but you can get a great buy. 

Short Sales have become a special area of expertise in the real estate industry.  As with any area of expertise in life - don't be afraid to venture with a good "Guide" (agent) - the rewards for going off the beaten path often exceed those found where the path is paved and the fruit hangs low.  

When it comes to choosing professionals to assist you with your real estate needs ... Experience is Priceless!   

 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Lisa Wetzel and Jim Valentine are the authors of this blog.  Lisa, Jim  and Jessie are experts in Carson Valley , Carson City and the tri-county area of Douglas County , Carson City and Lyon County.  Call our team anytime at 775-781-5472 or 775-781-3704.  To Search for Homes go to: Carson Valley Listing Book  or visit our website at www.CarsonValleyLand.com

A Few Random Thoughts As the Final Days of 2009 Roll By!    

This time of year certainly does get different treatment.  There are those that simply shut their business mindset down, others that are still sprinting wondering where everybody is, and still other people are basking in the glow of "goodwill towards men".  Tis the latter that concocts the spirit of the season and overall Holiday experience that results in a good feeling, rested mindset, and a clean slate to start the new year with.  

While some are working hard to close their escrows before the end of the year, others are wondering what their next move should be.  Immerse yourself in your family and the Holiday jubilation and remember ... that's what it's really all about.  If you are involved in a difficult real estate situation, i.e.- facing foreclosure, eviction, etc., don't let it ruin your family memories.  Out of fire comes stronger metals, so you shall be strengthened by your current situation.  It will pass, but these memories will remain, especially with your children.  Stay strong. 

The sanctity of these days was recognized by Fannie Mae and Freddie Mac by their recent action to suspend foreclosure and eviction actions through this period.  Other lenders participating in this generous moratorium include Bank of America, JP Morgan Chase, and Wells Fargo.  Though they have suspended action, they have not cancelled it.  You don't have to worry about losing your house or moving during the Holiday, but you should be making plans to remedy your situation.  There are multiple options available to you if you are in a difficult housing situation.  Don't ignore it - get a good agent that can guide you for your own good. 

Our advice:  While you suspend your emotional crisis in this highly emotional Holiday Season, remember that the moratorium isn't permanent.  Each of the above mentioned entities will resume their normal business routine on January 3, 2010.  Take some time now to relax, smile, and live.  

When you are ready to face 2010 be ready to make some business decisions of your own.  You owe it to yourself, your family and your friends to make the correct decision for your situation.  Regardless of what it is, your situation, though common in nature to literally millions of other people in our nation today, is unique unto you and must be analyzed as such.  Don't read too much, listen to too much media, or worse, listen to somebody that knows somebody that knows somebody that did something.  Get your personal situation assessed and a plan of action established.  Then you can move forward with confidence towards the rest of your blessed life on this earth.  

Though it may seem as if the end is near, when you think about it most of the stress experienced in a distressed real property situation is regarding money.  Money can be replaced.  Keep your health and family a priority and you will soon realize that you can always get more money.  The same can't be said about lost health and family.  

Have a very Merry Christmas and a Happy New Year regardless of your present life situation - today is a day for Joy.  From our hearts to you ... we wish you the very best for you and yours.  When it comes to choosing professionals to assist you with your real estate needs... 

Experience is Priceless!  

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Lisa Wetzel and Jim Valentine are the authors of this blog.  Lisa, Jim  and Jessie are experts in Carson Valley , Carson City and the tri-county area of Douglas County , Carson City and Lyon County.  Call our team anytime at 775-781-5472 or 775-781-3704.  To Search for Homes go to: Carson Valley Listing Book  or visit our website at www.CarsonValleyLand.com

Changes To The First Time Home Buyer Home Buyer Credit Affect Many  

The First Time Home Buyer Credit has been changed and is now not only for First Time Home Buyers, but for qualifying existing homeowners as well.  

The criteria for the First Time Home Buyer remain essentially the same, may not have had an interest in a principal residence for three years prior to the purchase.  The income limits, however, have been increased to a Modified Adjusted Gross Income of $125,000 for a single person and $225,000 for a married couple.  Above that it phases out allowing for partial credit.  The Credit for the First Time Buyer is the same, 10% of the purchase price up to $8,000, or $4,000 if married filing separate.  There is, however, an $800,000 limit on the price of the home where there was previously not a price limitation. 

For the first time, long-time homeowners who buy a replacement principal residence may also claim a homebuyer credit of up to 10% of the purchase price, up to $6,500 (up to $3,250 for a married individual filing separately). They must have lived in the same principal residence for any five-consecutive year period during the eight-year period that ended on the date the replacement home is purchased.  The keyword is consecutive - it is not "five of the last eight", it is five consecutive during the last eight.  Caution:  The law says that they must be selling, or have sold a home, but we have not been able to find any language about having to actually sell a home to qualify, or merely list it for sale.  This may be forthcoming in the future as details are clarified, but for now understand that there seems to be an intent in the way the bill was written to have it apply to persons replacing their primary residence.  Get details before you make a purchasing decision based on getting the Credit.

A Credit will not be received if a Buyer: a. Buys the home from a close relative, i.e.- a spouse, parent, grandparent, child or grandchild., b. Does not use the home as a principal residence., c. Sell the home before the end of the year., d. Is a nonresident alien.  Remember, too, that the entire Credit amount must be repaid if the home is sold within three years.  Mobile homes, with and without real estate, can qualify.  Recreation vehicles with a built-in motor not affixed to land do not qualify, but if you have lived in such an RV for the past three years you may qualify as a First-Time Homebuyer.  Travel Trailers affixed to land may qualify. Confirm the details of your desired transaction for compliance.  

Our advice:  The new changes reflect the lessons learned from the first two versions of the Credit.  Allegations of widespread fraud were made by those opposing the extension of the Credit.  That has been mitigated by the new requirement to attach purchase documentation, closing statement, to the tax return.  The expansion of the income limitations make it available for more people.  Partial credits are available if you exceed the limits - check with your accountant to see how you would be affected.  The opportunity to close up to two months after the expiration of the extension is reasonable and practical.  Have a written binding contract by April 30, 2010 and you have until July 1^st to close the escrow.  

The extension and closing cushion provided for after April 30^th gives ample opportunity to partake in this market.  Whether private party, bank owned or even short sale properties, you can get it done within that time frame if you take action in a reasonable time.  Prices are great, interest is great, and you'll get "paid" to buy a home ... what are you waiting for? 

When it comes to choosing professionals to assist you with your real estate needs... Experience is Priceless!  Lisa Wetzel & Jim Valentine, RE/MAX Realty Affiliates, 775-781-5472.  carsonvalleyland@hotmail.com, www.carsonvalleyland.com

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Lisa Wetzel and Jim Valentine are the authors of this blog.  Lisa, Jim  and Jessie are experts in Carson Valley , Carson City and the tri-county area of Douglas County , Carson City and Lyon County.  Call our team anytime at 775-781-5472 or 775-781-3704.  To Search for Homes go to: Carson Valley Listing Book  or visit our website at www.CarsonValleyLand.com