Carson Valley Real Estate - Carson City Homes - Lake Tahoe Real Estate

Nevada Foreclosure Relief - KNOW YOUR OPTIONS

Nevada homeowners in distress have options. In the Carson Valley Nevada area, I see Notices of Default filed every day in every price range of home - from the $100,000s to the multi-millions. In many instances, those homes go to foreclosure, and I can find no effort by homeowners to otherwise mitigate that foreclosure. This saddens and concerns me greatly as a resident of the Carson Valley Nevada area. I cannot determine why the home was not listed as short sale, and there were no other documents recorded demonstrating that the homeowner took any action to otherwise save their home. I often wonder: Did the homeowner understand they had options? Did they know the alternatives to foreclosure? Here are several options to foreclosure any Nevada homeowner should consider:

1. Forbearance - Forbearance is a period of time where the noteholder allows the homeowner to pay a reduced amount - or sometimes nothing at all - for a set period of time. Forbearance is typically used during a period of unemployment, or where the homeowner is anticipating a large influx of money like a tax refund or a bonus, to allow them to bring the mortgage current at some point in the future.

2. Reinstatement - This option allows the homeowner to pay the delinquent amount in one lump sum, or a series of payments, all due by a certain date, to bring the loan back to it's current state. This is frequently combined with a forbearance. An example of these two options working together would be: You lose your job and are out of work for three months. During that time you are actively looking for work and have a few good job opportunities on the horizon. During that time you fall behind on your mortgage. You contact your lender, and they forbear your mortgage payments for 6 months. However, they also put you on a reinstatement plan, where the full 6 months of mortgage payments are due at some specific point in the future - usually at the end of the 6 months. This often puts people behind the 8 ball, because unless you get a much better paying job, you won't be able to earn the amount of money needed to pay the payments for the period of time you spent out of work. Forbearance and reinstatement are often the lender's first efforts to aid a homeowner who is delinquent. When these options fail, the lender will consider more permanent efforts to bring the loan current, including loan modification.

3. Repayment Plan - This is a specific plan where the noteholder takes the number of payments missed and spreads them over a set number of payments in the future, allowing the homeowner to pay the delinquent amount over time, bringing the loan current at some point in the future. In some cases, where homeowners can demonstrate an ability to make the current payment due, but not cure the delinquent payment amounts, lenders take the payments past due and add them to the term of the note. For example, if you are consistently two payments behind, and are having difficulty catching up, but can make the payments from now on, the lender may choose to extend the term of your loan for the two months necessary to bring your loan back into a current state.

4. Refinance - This is a completely new mortgage and requires the homeowners to have the income, credit scores and equity to be eligible for a new loan. Since many homeowners are underwater - owing more than their homes are worth - this is not a common way in today's real estate market to avoid foreclosure action. The loan modification is a much more common option.

5. Loan Modification - A loan modification is a written agreement between the lender (usually the first mortgage lender) and the homeowner that permanently changes one or more terms of the mortgage note, usually making the payments more affordable.

6. Short Sale - A short sale occurs when the seller sells the house for less than the seller owes to the bank, including the costs to sell the home.

7. Deed In Lieu - A deed in lieu of foreclosure, also known as a 'friendly foreclosure' is where the homeowner agrees to sign the deed back to the noteholder. Why would a noteholder - or investor - do a deed in lieu? If foreclosure is inevitable, it saves the investor time and money and is an easier process for the homeowner.

8. Bankruptcy - For those homeowners facing severe hardship, bankruptcy may be an option, and is available according to United States bankruptcy laws. There are several types of bankruptcy available, however the two most common for homeowners are Chapter 7 and Chapter 13.

• Chapter 7 (also known as liquidation bankruptcy) is where all of a person's assets are sold and the money raised from the sale of the assets are used to pay off the debts. The debts are then cancelled even if the balances are not fully paid off. Certain assets can be excluded, such as a home under the Homestead Exemption, and assets without any equity are generally not liquidated.
• Chapter 13 (also known as reorganization bankruptcy) is where a person's debt is put into a repayment plan generally lasting from three to five years. The payment levels are determined from the person's income. At the end of the term, the outstanding amounts are discharged, eliminating any remaining amounts due. Sometimes past due mortgage balances can be included in the repayment schedule.

Foreclosure proceedings stop as soon as the homeowner files for bankruptcy. The person filing for bankruptcy then relinquishes control of their assets to the  Bankruptcy Court Trustee, who makes decisions regarding the disposition of any assets. If you are considering bankruptcy as a foreclosure relief option, we recommend you seek multiple qualified legal professionals who specializes in bankruptcy law and get at least two opinions before deciding upon bankruptcy as an option.

As you can see, there are several alternatives to foreclosure. Some may be more practical than others depending on your personal situation. However, one thing is clear. Waiting around for the problem to solve itself - or simply avoiding the problem altogether - will not help you. It will likely take you to the worst possible outcome - foreclosure. Foreclosure presents it's own problems, including ongoing credit damage for up to 7 years. Nevada is also a recourse state, meaning most loans written in Nevada allow the noteholder to seek compensation for amounts owed – even after taking your home.

If you or someone you know is in financial distress, they have options. And the worst thing they can do - is do nothing. Contact us today to discuss your options. If you need to short sale, we can help you exit gracefully, retain your dignity, and get a fresh start.

Nevada Foreclosure Relief Options - Understanding the Loan Modification

The mortgage crisis of the 21st century is unlike any financial crisis our nation has ever seen. When Nevada homeowners fell behind on their mortgage payments in days gone by, foreclosure was almost impossible to avoid. There were no consistent guidelines on how to deal with delinquent loans. The typical solution was to take the missed payments and late fees and add them to the loan - without changing any of the terms of the loan - which didn't change the monthly payment. This didn't help Nevada homeowners already unable to make their mortgage payments.

Today, thanks to the Home Affordable Modification Program (HAMP), Nevada homeowners have Loan Modification as an alternative to foreclosure. A loan modification is a written agreement between the lender (usually the first mortgage lender) and the homeowner that permanently changes one or more terms of the mortgage note, usually making the payments more affordable. Almost every mortgage lender today has it's own loan modification programs, as well as government programs such as HAMP (Home Affordable Modification Program).

Most loan modification programs include the following items:

• Interest rate reductions
• Adding missed payments to the loan balance
• Changing the type of loan from an adjustable-rate mortgage to a fixed-rate mortgage
• Extending the term of the loan (for example, a 30-year loan is extended to a 40-year loan)

The Making Home Affordable plan provided lenders with a consistent series of steps for modifying defaulted mortgages, known as the Standard Waterfall. The goal of the Standard Waterfall is to ensure that the mortgage payment is at or below 31% of the borrower's gross monthly income.  The steps to apply the Standard Waterfall are explained below:

1. Request the last 2 paystubs for all borrowers on the loan (for all employment) to document proof of income, to be verified with the last 2 years tax returns and the last 2 months bank statements.
2. Calculate the monthly mortgage payment including property taxes, insurance, HOA fees if any. (Late fees due on the loan are specifically excluded.)
3. Calculate 31% of the total gross income for all borrowers. This is the new target debt-to-income ratio.
4. Reduce the interest rate on the loan in increments of 0.125% to get as close as possible to the target debt-to-income ratio as possible. It should be noted that the lender is not required under HAMP to reduce the interest rate under 2%.
5. If, after reducing the interest rate to 2%, the target debt-to-income ratio has not been reached, the term of the loan can be extended for up to 40 years.
6. If the target debt-to-income ratio is STILL not reached, the lender has the option to forbear principal on the loan. It is important to note, however, that the program does not require lenders to do this. What happens with the amount lenders forbear? No interest in this amount must be repaid, and it is a balloon payment that is due at the time the loan reaches maturity (end of the term of the loan).

Lenders receive incentives for every Nevada loan modification they successfully complete. After completing this analysis, the lenders run an analysis that includes the incentive payments they will receive for completing the loan modification. If the lender decides that the financial outcome is better for the lender by completing the modification, then they will modify the loan. This is typically the stage in the process where a borrower receives their trial-payment program, consisting of 3 consecutive payments that take the new terms into account. After they make the trial payments on time and the borrowers sign and return the documentation agreeing to the modification, the loan is permanently modified.

If the target debt-to-income approach cannot be reached, the next step is a Nevada short sale.

This article was originally posted on CarsonValleyShortSales.com on March 9, 2011.

Things Buyers Should Know About Short Sales in Nevada Buying a Short Sale in Nevada can be confusing and frustrating if you are not informed of exactly how the process works. If you are considering buying a Carson Valley short sale, it's important to keep these points in mind so that there are no surprises in the process.

1. Short sales are anything but short! They may be called short sales but that has no bearing on the time involved in buying a short sale. They will take longer than a bank owned or traditional purchase. Sometimes obtaining approval from all the lenders involved can take months. This trend has improved drastically in the last 6 months, but you should still be prepared for a 3-4 month waiting time just for the lenders to approve the sale. This does not include your new loan processing if you are obtaining a loan. Buyers should be aware of this timeframe and plan accordingly.

2. Whether or not your Short Sale in Nevada is approved often depends on the skills and experience of the listing agent. Any real estate professional can list a short sale, but it takes a great deal of knowledge and training to get a short sale approved. If you are considering buying a specific Short Sale home in Nevada, have your buyer's agent run an MLS listing report on the listing agent. Then you can see how many short sales he or she has completed successfully. This will be a good indicator of whether your transaction will go smoothly, or maybe hit a few road bumps along the way.

3. While everyone wants a good deal, it's important to understand that the seller and listing agent, nor the buyer, establish the price. The noteholder (or investor) establishes the selling price. Buyers should be prepared for a counter from the lender during the short sale approval process. If you are familiar with the recently sold comparables in the neighborhood, it should be clear that the lenders merely want to make sure the home sells at market value, not below.

If buyers keep these three key points in mind, buying a short sale really isn't that daunting. Do you have questions about short selling your home in Nevada? We'd be happy to sit down with you confidentially and discuss your options so you make an informed decision that is right for you and your family. Contact Christianne Gordon at 775-881-8223 or by email at info@carsonvalleyshortsales.com today to arrange for your personal and confidential consultation.

This blog post originally posted on CarsonValleyShortSales.com on March 4, 2011 by Christianne Gordon.

Carson Valley Real Estate –  February 2011 Home Sales Report

It’s winter in the Carson Valley but you wouldn’t know it by looking at February Home Sales! For a second month in a row, we had 44 homes sell in the Carson Valley! Our market is showing incredible resiliency when compared to 30 homes sold in February 2010. Home sales volume is UP, and that is really good news.

Here are Carson Valley homes sales numbers for February 2011:

• 44 homes sold
• Median asking price is $196,900
• Median selling price is $196,500
• Median days on market is 157

So what is the absorption rate for the Carson Valley?

• There are 333 homes for sale in the Carson Valley as of March 2, 2011
• 44 homes sold in February
• 333 / 44 = 7.57 months of inventory

Could it be true? Is our market back to ‘normal’? What is a normal market? (Was the market ever normal?) I would argue that we haven’t had a normal real estate market since 2001 – and that is 10 years ago. Statistically, when there is between 5-7 months of inventory that is considered a ‘normal’ market. Of the 333 homes available for sale, 82 are short sales, and 31 are bank owned. That means 34% of our market is distressed. However, 16 of the 44 sales in February were short sales and 13 were bank owned, accounting for a whopping 66% of the sales. As long as we continue to absorb more distressed properties than are brought to market, we should be on a slow but steady course towards healing out local community and economy.

(Data provided courtesy of the Northern Nevada Regional Multiple Listing Service and excludes manufactured and shared ownership housing for Area 300, known as the Carson Valley which includes Gardnerville, Genoa, Minden, Indian Hills area of Carson City, China Springs, Spring Valley, Topaz Ranch Estates and outlying areas.)

This blog post originally published on GreatNevadaHomes.com on March 2, 2011.

Carson Valley Real Estate - 983 Fairway Gardnerville NV  89460 - Offered at $229,900

983 Fairway is a lovely, elevated house on the Carson Valley Golf Course. The main house is a 3 bedroom, 2 bath home with a large kitchen, a covered front porch and a deck with hot tub in the back yard. There is also a separate one bedroom, one bath attached in-law/separate apartment flat. It shares the front porch and rear deck with the main home. SItuated on a corner lot, this home also features RV parking and a working vegetable garden. 

In-Law / Separate Apartment Pictures Below

Shared Rear Deck and Front Porch

This is a short sale with only one loan with Chase. Work has already begun with the lender. This home also has been raised out of the flood plain via concrete blocks. For a showing, contact Christianne or Steve at 775-881-8223 or 775-690-0685.

Carson Valley Real Estate – January 2011 Home Sales Report

The Carson Valley real estate market typically is pretty quiet in January. Winter is upon us, and most people are bundled up, storing away holiday decorations, and trying to live up to all those New Year’s Resolutions! However, in January 2011, we saw a phenomenon from long ago come back around…home sales! That’s right, the Carson Valley area saw 44 home sales in January 2011. That is really big news when you consider sales volume for January’s of the past. In 2009, we saw a mere 22 home sales. In 2010, we had 27 homes sell in January. Home sales volume is UP, and that is really good news.

Here are Carson Valley homes sales numbers for January 2011:

• 44 homes sold
• Median asking price is $171,900
• Median selling price is $169,950
• Median days on market is 129

So what is the absorption rate for the Carson Valley?

• There are 340 homes for sale in the Carson Valley as of February 22, 2011
• 44 homes sold in February
• 340 / 44 = 7.73 months of inventory

It’s official – We are officially having a normal market in the Carson Valley.Of the 340 homes available for sale, 84 are short sales, and 33 are bank owned. That means 34% of our market is distressed. However, 12 of the 44 sales in the Carson Valley during January were short sales, accounting for 27% of the sales. That’s good news. Short Sales in the Carson Valley are getting approved more and more quickly, and buyers are coming to understand that short sale listings are not impossible.

(Data provided courtesy of the Northern Nevada Regional Multiple Listing Service and excludes manufactured and shared ownership housing for Area 300, known as the Carson Valley which includes Gardnerville, Genoa, Minden, Indian Hills area of Carson City, China Springs, Spring Valley, Topaz Ranch Estates and outlying areas.)

Carson Valley Real Estate - UNDER CONTRACT - 757 Raab Court

This simply gorgeous home with stunning mountain views and a fabulous open floor plan just went under contact but there are others. This home featured 3 bedrooms, 2 full baths, an oversized 2 car garage. Panoramic views to the south and west out of kitchen, great room, and master bedroom. Freshly custom painted interior, loads of cabinet space, island kitchen, gas cooktop, built-in microwave, single oven. Master bedroom has shower and gardentub, huge walk-in closet. This home showed true pride of ownership.

Fabulous value in Sunburst Subdivision at end of western-most cul-de-sac. Great landscaping, fully fenced including a dog run. Washer, dryer and refrigerator all included at sale (as-is at no value with no warranty). This is a fabulous value!

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About The Author

Christianne Gordon, REALTOR®, CDPE, SFR is a Northern Nevada Real Estate Specialist that can assist you with the purchase or sale of real estate in Gardnerville, Minden, Genoa, Carson City, Dayton, and Reno/Sparks. 

To search all available homes for sale in the Northern Nevada area, please visit GreatNevadaHomes.com or contact us for a FREE ListingBook account!

Dayton Valley Nevada Homes - NEW LISTING - 942 Lakeview Dr - Asking $170,000

Have you ever heard of a diamond in the rough? Well, this is ours! This 4 bedroom, 2.5 bath, 2 car garage home is ON the Dayton Valley Golf Course in the newest section of construction at the Dayton Valley Golf and Country Club. Built in 2004, this spacious home features a Great Room with views of the golf course.

This fantastic house just went under contract today but there are others! If you are looking for an affordable Dayton Valley home on the golf course at the Dayton valley Golf and Country Club, let us know!

This home is going to need interior paint throughout, new flooring, and a deep clean, but is priced to reflect the work required.This home is a fantastic deal for a do it yourselfer who is willing to pour a little sweat equity into a house and save tens of thousands in the process.

Would you like to learn more about the Dayton Valley Golf & Country Club? Check out the video we made detailing all the amenities of this wonderful community.

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If you enjoyed my blog post, I invite you to connect with me on social networks, subscribe to my blog, and watch my videos? 

_________________________________________________________________________________________________________

About The Author

Christianne Gordon, REALTOR®, CDPE, SFR is a Northern Nevada Real Estate Specialist that can assist you with the purchase or sale of real estate in Gardnerville, Minden, Genoa, Carson City, Dayton, and Reno/Sparks. 

To search all available homes for sale in the Northern Nevada area, please visit GreatNevadaHomes.com or contact us for a FREE ListingBook account!

It pays to know "who" you're dealing with when working a Northern Nevada short sale.

I have been working short sales for about 6 months now. I've spent a great deal watching the market niche evolve, and getting educated. That way, when I finally decided to throw my hat in the ring, I felt like I had a good solid foundation to serve this complex client base. Today's case study is about a Reno short sale and I'm the listing agent. The short sale approval letters are good through Monday, January 18, 2009.

As with most Northern Nevada short sales, it's been a lengthy process. There were two loans with two different lenders. Overall, it's gone rather well.

We listed the Reno short sale on September 3, 2009 and had an offer on September 25, 2009.

We received short sale approval from the second mortgage on November 20, 2009, and received short sale approval from the first mortgage on December 16, 2009. There was only one uncomfortable moment during the whole escrow up until now. It was when the buyer's agent called me and expressed her sincere displeasure about the first mortgage refusing to pay for a home warranty, even though the buyer is receiving a substantial seller credit.

I reminded her that I work for the sellers and have no control over the bank. If the buyers want to blow the deal over a $360 warranty, then they need to do what they need to do but it would be a real shame, and by the way, I have a back up offer...I decided from then on to put everything in writing, hence the email communication. The buyer then completed their inspections and their appraisal, and all was right with the world.

I sent an email to the buyer's agent on January 4, 2010, advising her of the need to complete any last minute conditions the lender will need in order to close on time because getting extensions on Reno short sales is very difficult. We exchanged communication and again, all was right with the world.

I followed up last week to be sure that the sellers were signing on time (they sign tomorrow) and the buyers are signing with plenty of time to fund the loan and close, since Monday is a holiday. I sent another email to the buyer's agent yesterday to ask when the buyer was signing, when did they want to do the walkthrough, and so forth.

I got an email this morning that states that the buyer may sign docs Wednesday, or maybe Thursday. The lender usually funds same day but it might take two days because it's a short sale, and if it doesn't go Monday, it'll for sure go Tuesday, the day AFTER the short sale approvals expire.

I replied to her with great urgency, and got all related parties to reach out to her as well (title and lender) to explain how crucial it is this transaction close Friday. I also pre-emptively asked for extensions from both banks for a few days to cover both ends. But it got me thinking...How many short sales has this buyer's agent worked on? Have they ever listed one? How many buyers have they brought to short sales?

You guessed it. No short sale listings closed (one is pending short sale approval), and only one other buyer with a closed short sale. No wonder they behaved as they did in the transaction. They didn't know what to expect. Now I know...next time I'll look up the other agent if I don't know them, and find out who I'm dealing with.

_________________________________________________________________________________________________________

If you enjoyed my blog post, I invite you to connect with me on social networks, subscribe to my blog, and watch my videos? 

_________________________________________________________________________________________________________

About The Author

Christianne Gordon, REALTOR®, CDPE, SFR is a Northern Nevada Real Estate Specialist that can assist you with the purchase or sale of real estate in Gardnerville, Minden, Genoa, Carson City, Dayton, and Reno/Sparks. 

To search all available homes for sale in the Northern Nevada area, please visit GreatNevadaHomes.com or contact us for a FREE ListingBook account!