10 STEPS TO FIND OUT IF YOUR RENTAL HOME IS IN FORECLOSURE

I receive a lot of inquiries from renters that are concerned about this, so thought I would provide a great article about this originally posted on January 16, 2008 by KVBC News 3, Investigative Reporter: Mitch Truswell

We get many, many phone calls from people who need to rent a home, but wonder if the rental they're looking at is in foreclosure or soon will be. The county recorder's office says on a daily basis, renters are learning the home they're living in went into foreclosure. The scary part is that the renters only learn this when they find a notice on their front door telling them they have a few days to move out! Others will find a padlock on their rental home. Not only do these folks have to move out, if they paid first and last month's rent, plus a security fee, they likely won't get that money back.

Unfortunately, there is no quick 1-800 number to call and get an answer. Instead you have to do a little detective work. The Watchdog is watching out for you. We've made this as simple as possible and have put a step by step list on how to see if the home you're renting, or want to rent, is currently in foreclosure. It would make a lot of sense to check this on a monthly basis.
Here we go!

1. Get the address of the rental property. If it's not in the rental ad, call and get it. Or better yet, set up an appointment to look at the house. That way you'll be sure the address you're given is accurate.

2. Go to the Clark County Assessor website:

3. In the top left corner, click on address search and then enter the address. Keep in mind you enter the house number, the street name, the type of street (court, circle, road, etc) on separate lines. If you don't know what city or town the rental is in.. just leave that unspecified. Even though the rental home is in Las Vegas, it could show up under another town, such as Spring Valley, etc. Anyway, enter the address information and hit submit.

4. You should see a listing with the exact address. It's probably the first one on the list. Click on the parcel number.

5. Under general information you should see the homeowner's name and address, and also the parcel number again. Write that parcel number down .. you'll need it.

6. Go to the Clark County Recorder website.

7. The second listing on the upper far left side of the site is "search records" .. click on that.

8. In the middle of the page you'll see several options to search on. Simple, Advanced, Instrument ID and Marriage.

9. Click on "Advanced Search".

10. The only thing you want to concern yourself with on this page is "legal descriptions". There are four lines under legal descriptions .. you want to use the first line which shows parcel number. In the blank space NEXT to parcel number, you want to enter the parcel number you wrote down. Do not enter the dashes between the number .. just the numbers. Then click on the button below that says "Detail Data".

This should take you to the "Web Services Detailed Data Results."

You'll notice each entry has an instrument number and a document type. If default paperwork has been filed with the recorder's office, it should be listed here. The most recent actions are listed first. If it's not listed now .. you may want to check back on a weekly or monthly basis. If you see something that might be a default, or you want more information, write down the instrument number and take it with you to the county recorder's office. They are there to help you and that instrument number will prevent you from going through all these steps again. Some detailed documents are ONLY available at the county recorder's office. Employees there will help you find what you're looking for.

Where is the County Recorder's office? It's inside the big stone-looking building at 500 S Grand Central Parkway known as the Clark County Government Center near Charleston. It's across from the Premium Outlet Mall and near the World Market Center. The recorder's office is on the second floor. The phone number is 455-4336.

REPO's Effect On The Las Vegas Market

The huge number of foreclosed properties being marketed by banks is having a profound effect on the whole resal estate market in Las Vegas. The sheer number of REPOs is making them the dominant force in setting the prices of properties that are sold, and changing the average and median sale prices all across the state, and the nation. The Las Vegas Valley is one of the areas with the highest percentages of foreclosed properties, called REO by the banks (standing for Real Estate Owned.)

According to statistics extrapolated from the Greater Las Vegas Association of Realtors, between May 2008 and December 2008, monthly closed sales averaged 60% to 76% bank owned properties, with the percentage increasing each month.

Month	All Closings	REO Closings	% of REO
May	2451	1471	60%
June	2618	1695	65%
July	3057	2068	68%
August	2893	1986	69%
September	3115	2185	70%
October	3085	2190	71%
November	2541	1923	76%
December	2901	2201	76%

Banks (and other institutional mortgage lenders) don't want to sell their properties lower than the other properties in the neighborhood, but they are working under a number of constraints that many homeowners are not. Agents often hear this statement from homowners; "I don't have to sell. I'll wait until I get my price." The bank will say, "Tell me where I have to price it to sell it in 30 days," and "We've had it on the market for a month, let's lower the price." Their carrying costs on the property are huge, making utitlity payments, sometimes paying for pool and lawn maintenance, accruing HOA fees and fines, and taking hits from the vandalism many vacant houses attract. But their biggest loss is the capital tied up in foreclosed homes that they can't use to make new loans and other investments.

These financial institutions also have deadlines relating to their balance sheets that homeowners do not consider. They may lower prices repeatedly to close by the end of the month, the end of the quarter, or the end of the year. Management may set goals to get rid of a certain percentage of properties by a certain date, and if that means drastically lowering the price, they will do it.
And lastly, they have no emotional attachment to the property. They don't care what color the walls are painted, (unless the color is preventing the property from being sold.) They don't know and don't care that someone put in a new hot water heater and air conditioner in the last two years. They just hope for a working one of each is in a property, and they protect themselves from the chance that they dont' work by only selling the property to buyers who will purchase "as-is." And buyers make lower prices on properties sold "as-is" than properties of which the owners have filled out the property condition statements, and are amenable to making small repairs.

This has created a dramatic downward trend in our median and average home sale prices, as those homes that are not foreclosures are forced to lower their prices to stay competitive. This is not great news for property sellers, but for property buyers it's a great time to buy. For investors, for the first time in years, they can purchase a residential property and expect to cash flow positive.

Tax Cap Reduction - Clark County Nevada

Clark County Nevada now has a 3% per year cap for tax increases for primary residences, and an 8% per year cap for many other types of properties, approved at the last legislative session, and based on a base rate of the property’s 2004-2005 taxes. That cap rate, in conjunction with the huge run up in property valuations, make for some interesting speculation on exactly what we will pay in property taxes.

The property tax cap is based on the amount of taxes billed, and does not limit the amount of increase in assessed value of the property. So while the assessed value could keep climbing at a huge rate, you taxes could only go up 3% per year. Of course, they could go up 3% year after year and never reach the actual tax figure.

For example: one home we know of worth about $525,000 has a tax of %5137.78, based on the current assessed value. However, their cap rate reduction is %2033.64, so this tax year they owe $3084.14. If the tax due increases at 3% each year, it will take 18 years for the owner to pay the actual tax amount. However, if the tax value goes up again during that time, as they most likely will, the capped taxes paid may not ever catch up with the tax amount, as long as the owner lives in the home.

One fact we tried to determine: if the current home owner sells his home to another owner occupant, does his tax rate start at the higher amount, or does it continue based on the amount the old owner was paying, plus the 3% per year.

After several confusing conversations with the assessor’s office, our understanding is the new owner’s tax stays the same as the old owner’s, with the 3% increase per year. If they are charged more than that, they can appeal and have it reduced to the lower amount. A title officer we questioned laughed and said “If you ask three different people, you get three different answers. My experience is they charge the un-capped rate to the new owner.”

Purchasers of new homes will be assessed the full value of the home at the first assessment period after the home is purchased.

We, of course, are not property tax experts or attorneys, so if you have questions about your tax bill and the tax rate cap, call the Assessors Office, (702) 455-3882. Oh, and by the way, if prices go down will the assessed taxes go down, and the cap rate with them, or will we all just reach our break-even point sooner.

Buyer's market! For how long though???

Although the pricing is remaining a bit stagnant, the activity has picked up somewhat. Some analysts say that the market will be “normal” early 2008, but I am still bullish on Vegas. We still have ~7000 people moving to Vegas each month and are only selling ~1,700 homes. Even with another ~1,000 new homes being sold (which is a high number), that still leaves us with a lot of buyers cueing up!

This is not planned to stop. Look at projects like what the Venetian is about to bring online (Palazzo), as well as the new "old stardust" (Echelon), and City Center. These project’s alone are and will for quite some time creating a HUGE job demand.

I think we will see an interesting shift in the market (in a good way) over the next few years. It’s just my opinion.

Mike Pristow
http://www.pristow.com/
mike@pristow.com
702-292-2558

Greenspan Unconcerned About Housing

"It looks as though the worst is behind us" in terms of the effect of the housing slump on economic growth, he told financial advisers at a conference in Washington organized by Schwab Institutional, a division of Charles Schwab & Co.

Click here for the full story - washingtonpost.com

Housing: Too Much Cash Waiting for Investment for the Market to Fall Sharply

Andrew Mickey submits: Many headlines and cable news programs are touting a pending real estate bubble. Sure this helps increase their ratings, but there are too many factors in favor of real estate to worry about the naysayers.

Click here for the full story - seekingaplha.com

100 cities ranked. Despite a slowdown, some values are still out of whack. Plus: where the bargains are.

By Les Christie, CNNMoney.com staff writer July 26 2006: 5:25 PM EDT NEW YORK (CNNMoney.com) -- After years of local home markets getting more and more overvalued, the trend has reversed, according to an analyis published this week.

Each quarter, Local Market Monitor, which provides research to the real estate industry, assesses 100 markets, comparing selling prices to "equilibrium" values. Company president Ingo Winzer bases those values on local economic and population growth, construction costs, vacancy rates, household income in the area and interest rates.

The number of overpriced markets in the first quarter, defined as having a median home price more than 15 percent higher than equilibrium, fell by two to 38. In the prior quarter, the number of overvalued markets had climbed to 40 from 37.

Click here for full Story - CNNMoney.com

New game takes shape as housing market cools, opening doors for buyers

The opportunity to become a homeowner in Las Vegas has widened greatly, observers say, as investors bail out of a cooling market, leaving inventory at a record high and forcing sellers to lower prices by as much as $50,000 in some neighborhoods.
It's a new game in a changing market, and old rules no longer apply, said Jason Braford, district director for ZIP Realty in Las Vegas.
Advertisement


Homes are staying on the market longer. In May, 43.1 percent of homes sold within 30 days, compared with 48.4 percent in the same month a year ago, the Greater Las Vegas Association of Realtors reported. Meanwhile, the median price increased only 3.3 percent to $310,000.

Some sellers probably are wondering whether to cut their price now or hold out for more. Some prospective buyers might be wondering whether they should take the plunge or continue to rent. They might be asking themselves, "Is it time to go for a bigger house or a smaller one?"
Don't try to predict the market, Braford said. If you're looking for a home to live in for at least five years, short-term fluctuations are not important, he said.

Click here for full Story - reviewjournal.com

Commercial Real Estate Continues Uptrend

Economy is pulling commercial real estate along with it, says Lereah.

The expanding economy is pulling commercial real estate along with it, creating strong demand for space. At the same time, institutional investors are returning to the market, according to a commercial market update and forecast presented here at the National Association of Realtors® Midyear Legislative Meetings & Trade Expo.

Click here for full story - RISMEDIA

Why The Housing Bubble Won't Burst

Veteran analyst Michael Youngblood explains his unusually optimistic take on the real estate market.

Type the words "falling housing prices" into Google and more than 8 million citations pop up. Michael Youngblood's name won't be among them...

Click here for Full Story - businessweek.com

Luxury condo projects are falling by wayside

Unlike the Kevin Costner film, "Field of Dreams," if you build a luxury high-rise condominium, the buyers don't necessarily come. Demand for posh vertical living has softened somewhat during the past six months. It has resulted in several valley-wide project cancellations...

Click here for Full Story - lvbusinesspress.com

Spring home buying season -- old rules, new tools

Here's how to put yourself in the best position as you start eyeing homes.

It's that time of year again: After the long, cold winter, when shopping for new homes grinds nearly to a halt, the warm weather brings people out and into real estate offices.

But this year, shoppers face a changed environment...

Full Story - CNNMoney.com

2005 Was a Very Good Year for Home Owners

(March 2, 2006) -- Home prices rose an average of 13 percent last year, according to a report released by the Office of Federal Housing Enterprise Oversight, the agency that manages mortgage giants Fannie Mae and Freddie Mac.The report pointed out that home prices grew far more rapidly last year than the prices of other goods and services included in the Consumer Price Index (12.95 percent vs. 4.3 percent, respectively).

Full Story - Realtor Magazine Online

LV home prices stabilizing

The Las Vegas housing market has cooled from its feverish pace over the last couple of years and most experts agree that's a good thing.
Houses that were selling at 10 percent above asking price a year ago are now being reduced and are staying on the market for nearly two months.
The median price of a new home in Las Vegas dropped to $303,751 in January from $309,900 in December, Dennis Smith of Home Builders Research reported. The price is up 7.5 percent, or $21,203, from the same month a year ago.
Excluding 795 apartment conversions, which accounted for 27.8 percent of the 2,862 recorded new home sales in January, the median price was $343,198, an 11.6 percent increase from a year ago.
See Full Story...Las Vegas Review Journal

Southern Nevada Continues to Grow

NEVADA -- Boosted by strong construction and employment numbers, Southern Nevada's leading economic indicators suggest continued expansion and prosperity into early 2007, a local economist said.

Full Story - CasinoCityTimes.com

Don't Give Up on Real Estate

Most of us have watched in amazement as the residential real estate market in the U.S. has gone through the roof. Almost all of the homebuilding stocks have reflected the positive environment... More

NAR: Home Appreciation Still Hot in Most Areas

Strong annual increases in median existing-home prices were common in most metropolitan areas during the third quarter, according to the latest report by the NATIONAL ASSOCIATION OF REALTORS®.

Read More

The much ballyhooed housing bubble isn't happening Las Vegas, a real estate consultant said Tuesday.

At a housing seminar at the Four Seasons, Tim Sullivan, principal of San Diego-based Sullivan Group Real Estate Advisors, said a housing bubble would defy all fundamentals of the local market.

"The market's not going to hell in a hand basket, and our safety net is California," he said.

Sullivan said Las Vegas can't have a housing bubble with this kind of job growth and in-migration and when land is hard to find and there's not much housing inventory. Any talk of a housing bubble is probably coming from outside the market, he said.

See Full Story...Las Vegas Review Journal

Are You Ready for 13 SEER?

The Department of Energy (DOE) measures efficiency in numbers called SEER ratings (Seasonal Energy Efficiency Ratio). For several years, the minimum efficiency standard for newly-manufactured HVAC equipment has been 10 SEER. On January 23, 2006, the law will require manufacturers to stop producing anything less than a 13 SEER. Therefore, homeowners will be frustrated when they face a possible system upgrade instead of standard repair.
In order to explain the implications of 13 SEER, real estate professionals will need to understand the possible system upgrades and costs associated with the new standard.
A scenario that poses risk to the real estate professional is a home warranty provider that doesn't address 13 SEER. Certain manufacturers and service providers such as NAR's REALTOR BenefitsSM partner, American Home Shield, are preparing to help agents prepare for the new standards.
"We work very closely with the real estate community, and understand their frustrations and constraints," said Steve Burnett, Chief Marketing Officer at American Home Shield. "We're going to supply easy-to-understand learning tools for agents to share with their clients and also make sure our field team is knowledgeable on 13 SEER."
For more information, visit http://nar.ed10.net/h/YS0U/33A4/7V/XIYDF.

Las Vegas lots at all time high

A report from Applied Analysis showed the average price at $601,600 an acre, or $13.81 a square foot, based on 416 transactions involving nearly 2,300 acres.
The comparable period from a year ago included the Bureau of Land Management sale of 1,940 acres in Henderson to Focus Property for about $550 million. Excluding that transaction, land values were up 81 percent.
Parcels ranging in size from 20 acres to 50 acres, suitable for residential development, averaged $890,000 an acre and represented 12 percent of land transactions during the quarter. Property close to the Strip, especially along Tropicana and Harmon avenues, is going for more than $3 million an acre.
"It just confirms the amount of investment and speculation that's taking place in the market," said Brian Gordon, principal of Applied Analysis. "It's just driving property values north, and developers are willing to pay premiums to get in the game."
See Full Story....Las Vegas Review Journ