Henderson real estate prices have seen a 15 percent increase since this time last year. Some local experts are saying that may be due to investors snatching up all the properties before those with financing can get to them. Is there a shortage of affordable houses available in the greater Las Vegas area? That seems to be a hot question this season.

Part of the issue may be that all of the new regulations have slowed the release of foreclosed homes back onto the market. Currently at about 16 percent of the market – nearly half the number of those from last year – available foreclosure properties have taken a significant dip this year.

There are two ways of looking at this. One is that supply and demand is, indeed, forcing up the cost of homes for sale in Henderson, Nevada. Another is that the decrease in foreclosure properties must mean a housing market that is making a comeback.

Short sales are on the rise, too. These types of purchases take much longer to close, so that may explain part of the shortage and part of the pricing issue. It seems that appraisers tend to base their valuations on nearby sales closings, rather than those properties that are available on the market – which may skew the numbers; given that so many are still in escrow.

Still, this means that there may be several offers on your little dream home, and one of them may be an investor with cash in hand. Of course, that investor is much more attractive to the seller who just wants to make a profit. The hope is that after the election, more banks will be releasing their inventories. This will help those with financing get back into the market.

Meanwhile, it’s best to choose a realtor who is informed and willing to take the time to explain your position and options. There are still some great family homes for sale in Henderson and the nearby areas. There are also some fabulous financing options. Don’t give up, your new home awaits.

You see the hand-written signs on the side of the street, many saying something along the lines of, “Rent-to-own, no credit needed!” If you do not have a large down payment and your credit isn’t so good, is this a viable option for you? What does rent-to-own (or lease-to-own) really mean?

You may be familiar with furniture and electronics rent-to-own stores. If so, you know that it’s a decent option if you need something like a new washer or dryer right now, but can’t afford to buy one or don’t have the credit to get a new one. You also know that if you do finish paying for the merchandise over the course of the original agreement, you may end up paying nearly twice what the actual retail cost of it might have been. Good in a pinch, but not a good deal over the long run.

The same holds true for the rent-to-own model of buying homes. Generally, a rent-to-own home is offered by the current owner. It starts out as a traditional lease and then a part of the amount paid into that lease over the course of between one and five years may convert into the down payment towards the purchase of the home.

Horror stories abound, and the consensus is that very few of the renters actually convert to buyers after the lease period is up. The monthly rent-to-own payment amounts tend to be much higher than if they were normal rental properties. Some owners require large deposits or ‘down payments’ that you could have applied to a traditional lease anyway. Remember, while you are in the lease portion, the owner still has the power to evict you. There have also been reports of owners getting foreclosed on and not bothering to tell their tenants. Not all owners are dishonest, but do be wary. Make sure any contracts you enter into are very clear on both sides.

If you think in the short term, the lease period could give you time to save for another purchase or clean up your credit enough to qualify for a loan that you couldn’t get before. Still, there are enough Henderson homes for sale and enough loan options that it might be best to explore all the traditional avenues before you end up paying way more than you should. Consult with a professional before you sign anything.

See our previous post about renting vs. owning for a little more insight. 

What is it about the Henderson, Nevada area that makes for a presidential attraction?

In June, First Lady Michelle Obama visited the Henderson Convention Center to speak about voter registration. Her husband, US President Barack Obama, is currently staying at the Westin Lake Las Vegas preparing for the upcoming presidential debate. This is his ninth trip to our state this year. 

First Lady hopeful, Ann Romney, is here today campaigning for her husband, Mitt Romney.  She, too, will be at the Henderson Convention Center on Water Street.

Last Friday, Craig Romney, the candidate’s son, was nearby on Eastern Ave at a ribbon cutting ceremony for a new campaign office. Both sides of the race hope to reach out to the undecided voters in the growing Las Vegas area.

Whether you are a Democrat or a Republican, you cannot deny the allure of beautiful and convenient Henderson, Nevada. Less than an hour off of the busy Las Vegas Strip, Henderson offers a quiet, home-town appeal, yet still has all the most modern conveniences nearby. Perhaps this is why the candidates stay in Henderson whenever they visit the southern part of this swing state.

Those who live here don’t wonder why the candidates want to keep coming back. Nearby Lake Las Vegas and Green Valley also offer absolutely beautiful resorts fit for the leaders of the free world. Bumping up next to these resorts are brand-new master planned neighborhoods with plentiful dog and kid-friendly parks. (See Sept. 25 post, “Are you Playful? Move to Henderson!”)

Current houses for sale in Henderson reflect the diversity of the population itself. From small starter homes to brand new near-mansions on the lake, your choice of a new home may be almost as difficult as your choice at the polls.

Michael Shustek (a Las Vegas real estate investor) is betting $550 million that he can make a profit from a few of the markets in the nation that were hit hard by the faltering economy.  Shustek's new investment fund, MVP REIT, is attempting to raise up to $550 million from their investors in order to purchase commercial properties and mortgage loans in several states.  The U.S. Securities and Exchange Commission has given him the green light to begin selling his shares. 

Although certain real estate markets are currently undervalued, borrowers are still having a somewhat difficult time time getting their projects properly financed.  Nevada's real estate market is not likely to fully recover in the near future, which has been keeping sale prices to a minimum.  Through these financial downfalls however, opportunities have been created for market investments that have the potential of long-term growth. 

Having worked in Nevada since the early 1990's, Shustek founded Vestin Mortgage in Las Vegas.  The company invests in loan that are backed by real estate.  Along with two publicly traded real estate investment trusts, an investment fund, $135 million dollars in total assets, and the co-authorship of two books about investing, it is safe to say that Shustek knows his stuff! 

Along with MVP REIT, significant gains could be made for Shustek through the purchase of inexpensive property that has potential to bounce back later on, and increase in value. 

According to federal judge U.S. District Lloyd George, millions of dollars have been lost permanently in an HOA fraud.  The scam on innocent homeowners took place between 2003 and 2009.   

Federal judge George claimed that millions of dollars have been lost forever by some southern Nevadans (homeowners), and those community associations could possibly be gone, forever.  Letters from the victims of the fraud were referenced by the federal judge, and were filled with pleads for restitution and reimbursement from the HOA scam. 

A former HOA board member was heard in court by George.  Citing the fraudulent event as "tragic and unfortunate", the judge empathized with the homeowner victims.  Unfortunately, there is little money to help the victims recover from their losses.

A group of at least twenty-four individuals are awaiting sentencing since last year by federal judges in Las Vegas, after they had plead guilty to involvement in the scheme.  The investigation for the ongoing HOA fraud continues to unravel more bits and pieces of information in this unfortunate scenario.

The focus has been on elections for the HOA boards which had been "rigged" in order to carry out the fraudulent activities.  Prosecutors in this incident have noted that these rigged elections had allowed for a large quantity of co-conspirators to invade the association boards, and allowed for lucrative contracts to be steered toward favored contractors and lawyers throughout 

The numbers are high, but something like close to 67,000 Las Vegas and Nevada homeowners lost their homes to foreclosure between January 2008 and December 2011.  This information is relevant now more than ever, as qualifying Nevadans are now eligible for reimbursement checks of up to $2,000.  These reimbursements come under a settlement agreement with the nation's five largest banks, according to Attorney General Catherine Cortez Masto.

Masto's office started the process of mailing out information packetsto homeowners who had lost their homes to foreclosure during the qualifying timeframe.  The packets filled with information about the checks, are being mailed out up until October 12.  Forms must be returned by January 18.

Important information to note, came from both Masto and U.S. Housing and Urban Development Secretary Shaun Donovan at a Las Vegas Sun editorial board meeting this past week:  Nevadans need to be wary of people looking to charge a fee to assist in the application process for the reimbursement funds. 

"It's free,"  Masto said.  "I'm concerned about scammers."

Pending approval, the payment checks are set to be mailed out in the middle months of 2013.

This reimbursement became possible as the federal government, along with 49 state attorneys general (Nevada being one of those states), forged a settlement agreement with Ally/GMAC, Bank of America, Citi, JPMorgan Chase and Wells Fargo banks.  The $1.5 billion in payments for close to 1.8 million borrowers means that payments will fall somewhere in the $1,500 to $2,000 range. 

Fees that were charged wrongly to homeowners, and other various charges that were unnecessary account for the reimbursement by the banks.  It's possible that, those that lost their homes who really shouldn't have, are now eligible to at least get a portion of those fees returned to them. 

If you think you might be eligible for a check, you can request and fill out a form online at  nationalmortgagesettlement.com.

Any questions can be directed to settlement administrator at 866-430-8358, or emailed to  administrator@nationalmortgagesettlement.com. 

If you or your spouse served in the military, you may be able to get a VA loan. The Department of Veterans Affairs home loans program might just be able to help you purchase a home, even if you have been denied by more conventional lenders or don’t have a huge down payment saved up yet.

Who is eligible?

Most veterans who were honorably discharged and served 24 months of continuous active duty are eligible. Visit the Department of Veteran Affairs Website for details. Even if you are the widow/widower of the qualified veteran, you may still be eligible, if his or her death was service-related or he/she is a POW/MIA.

What is the benefit of a VA loan?

If you are a borrower with no down payment and/or credit that may not be so hot, you can qualify for a VA loan. You do not have to pay private mortgage insurance, and the VA limits closing costs as well as origination and appraisal fees. This means that you will save a lot of money compared to conventional mortgages.

The amount you may borrow is still based on income and credit scores – but the score is based on the past 12 months, rather than several years, as is the norm for civilians. If you have no negative activity for the past year, you are already at an advantage.

For the most part, lenders are more than happy to go this route because the VA insures ¼ of the loan amount in the event of foreclosure. But, that may not even be an issue, as it has been shown that veterans have a lower default rate than other borrowers, according to the Mortgage Bankers Association. 

Generally, interest rates are lower than conventional mortgage rates. Conventional rates vary greatly based on the size of a down payment. A VA fixed-rate loan may offer a competitive rate with no down payment.

Getting started First, visit the VA web site (listed above) to apply for certificate of eligibility. Then, contact Bill Jenkins 702-845-8540 to get started on your loan qualification. We thank you for your service to our country, and hope to help you move into your dream home!

Your family has grown up and moved on. You’re looking at retirement, and/or you find finances a bit tighter. Is now a good time to investigate the possibility of downsizing your home? Consider the factors below to help you decide:

Availability

Smaller homes in the Las Vegas area are a hot commodity right now, while the larger, more luxurious homes are selling well to investors. Your current home may sell just fine, and for close to (sometimes even above) your asking price. (See “Could your home start a bidding war?”) But, you may end up paying more than you thought you might for your smaller home because of the higher demand for smaller, “starter homes” right now. We can help you determine the best move.

Mortgage amount

Sure, a smaller home may come with a smaller mortgage – depending on many factors. Things to consider include the location, amenities, and age of the home you intend to purchase.

Remember, your mortgage is both principal and interest – will you get a lower interest rate? Chances are, assuming that you have not recently refinanced, you will see a drop in interest. Rates are still very low!

Taxes

Even if your new home is smaller, will the property taxes be less? Moving to a new area may also drastically change the amount of the property value, even if it is on a smaller plot. Some areas are assessed higher because they are more centrally located, have higher school/fire/police bonds, or are just more desirable.

Utilities

Usually the utilities will be less in a smaller home, but check into the average cost in your prospective neighborhood. If your current home uses a gas stove and furnace, for instance, but your new home is all electric – you may not see much benefit. Older appliances may cost more to run. Your newer home may be better or less insulated than your current home. All of these things combined could lead to either a pleasant or very unpleasant surprise. A little bit of research could save you from such revelations after the fact.

Insurance

Ask your insurer what differences may occur. Moving to a smaller home that is viewed as a higher-crime area (even if your particular street seems safe) may actually increase your insurance costs – both for your home and for your vehicles. Also consider the affect it may have if you no longer have a garage or a driveway (or if you are adding one). The results could go either way.

Other costs to consider:

Home Owners Association (HOA) dues.

Letting go of or adding landscaping or maintenance services.

Distance from shopping and your other normal activities.

Distance from public transportation, medical facilities, schools, and/or parks.

While this may seem like a lot to look into, it will save you from headache in the long run. Overall, rates are still fantastic and the market is revving up – so call today for a consultation. 702-845-8540

For the second year in a row, the city of Henderson is listed as a Playful City USA Community! Henderson is currently the only city representing the state of Nevada, but hopefully we'll get more on board. Sponsored by the Humana Foundation, Playful City USA recognizes cities and towns across the nation that are really good at promoting healthy play by building playgrounds and introducing innovative programs that encourage children to engage in physical activity. It is an application-based program that offers a lot of benefits to cities that qualify. Those recognized are awarded access to Let’s Play grants worth millions, and are highlighted in national publications. Add to that the fun street signs and marketing kits, as well as expert trainings for community leaders – and being a Playful City USA community is not just an honor, it’s a huge benefit to the children all around the area.

Why play?

The organization, KABOOM!, believes that too many children are denied the opportunity to experience full use of their imagination combined with all the benefits of physical activity, including creative adventures.

According to recent research, children who are allowed to play actually do better in school and tend to be healthier both mentally and physically well into adulthood. The social skills learned on the playground will help when they grow up and get ready to enter the workforce.

Sadly, according to their website, only 41% of parents polled say that their children have access to a playground in their community. Nation-wide, recess time is being restricted, while the amount of schoolwork children are bringing home is increasing. They even report that newer schools are not building playgrounds at all! Lack of play time is directly linked to issues such as ADHD, childhood obesity, and social and behavioral problems.

KABOOM! uses the term “Play Desert” to describe an area with a lot of children but no place for outside play within walking distance of their homes. Other factors such as age/quality of available play spaces and crime rates are also considered.

The non-profit organization endeavors to change this downward spiral through awareness and their “How to Save Play at Your School” program. Visit their website to join in the pledge.

Congratulations Henderson, NV for making the program again. We may live in the desert, but we are no “play desert!” Let’s continue to be a playful community for the good of our future generations.

Home prices in Las Vegas are moving in an upwards direction.  The real estate conditions in and around Las Vegas are now seemingly more reminiscent of the "boom years", and showing less of the suffered and dwindling economic status that Las Vegans have come to know in recent years.

The market for brand new homes has recorded 602 closings in August of this year, up 60 percent from last August.  On average over the last year, home sales are up 15 percent, according to a Sales Traq report.  Cash home buyers in Las Vegas currently account for 53 percent of home sales.  The more cash sales, the higher the home prices.  This may also be a reason for rising prices in real estate.  The reason is, there is no real need for appraisals in instances where cash is paid for a new home.  With a lack of need for traditional appraisals from lenders, cash buyers are outbidding a portion of home buyers with financing.  Sales Traq analyst, Brian Gordon, claims "we're nowhere near the pace that Las Vegas experienced during the boom years, but it appears to have picked up off the floor from the last two years". 

President of Residential Resources, Frank Nason, states that in Las vegas currently 85 percent of homes that are pending contract are short sales.  The decline in foreclosures and increase in short sales in Las Vegas, is effecting the market in a significant way.