There are opportunities in the Las Vegas marketplace right now for the prudent buyer in the area of foreclosures, bank owned properties and homes that are offered for sale in a "short sale" situation. Below I will discuss each of these options in some detail. Feel free to contact me if you have questions.
Search Las Vegas area foreclosures on-line
As of May 4, 2008 there are 9,141 homes listed for
sale in the Las Vegas
Valley that are listed as either bank owned or as short sales.
Foreclosures - Here I am addressing a "court house steps" auction. Opportunities here occur only when bids are made in the amount that can pay off the lender including costs of the action. If no one is willing to bid over and above this amount, the bank/lender typically takes the property back. The downside of this for the average buyer includes the following. Few properties foreclosed on at the present are worth more than what is owed the bank. When there are opportunities where the value is there, it is still difficult. Many of the individuals that bid on properties are very experienced. They have been through this process many times, are aware of the true costs of rehabilitating these properties and have a very good idea as to what to bid. Individuals that participate in this local "cottage industry" normally bid against each other. Presently few properties are sold this way. Most properties foreclosed on in this market, due to market conditions are taken back by the bank.
Bank Owned Properties - In this situation the bank has taken the property back. Normally this is either through the foreclosure process or through some negotiated agreement between the homeowner and the bank. This can be an excellent opportunity in that the bank is only interested in recovering as much as they can and will sell the home for whatever the market allows. They do not have the "emotional investment" many homeowners have in their homes. They are strictly business. There may also be some advantages in financing through the bank that presently owns the property. There are, at the present time, many bank owned properties in the Las Vegas area. These present some of the best current opportunities. Keep in mind, however, that getting an offer accepted with a bank could take up to a few weeks or more.
Short Sales - A short sale is where a lender accepts a discount on a mortgage to avoid a possible foreclosure. Lenders are willing, in some cases, to take such a discount to avoid foreclosure for several reasons. First of all banks do not like excess inventory and bad loans on their books and if they see a chance for the property to be sold without a huge loss they will often do it. Secondly, they know that they could lose more money if the property goes to auction, given the delays and the many fees involved in that process. Purchasing a home that is listed in this way could take much more time than a conventional sale. A buyer could go through the process for a month or two without in the end consummating a purchase. Also, as a word of warning, most homes are listed as "short sales" without a meeting of the minds between the owner and bank. Of the over 4,000 short sales currently on the market, only 68 closed escrow in the last 30 days, as of February 10, 2008. As I analyze the short sale situation, it appears that very few actually consummate in in a closed sale.
Government insured loans - HUD, VA, Fannie Mae and Freddie Mac are all government entities, or entities substantially controlled by the government, that insure loans. When a homeowner defaults, then the insurer takes the property back. There are usually a number of properties listed for sale where this has occurred. These are typically sold through a bid/auction process.
Home Auctions - Some banks have put foreclosed homes up for auction. This could be a good opportunity, however there are some drawbacks. In most cases, if you are the high bidder, the bank is not obligated to sell the home at the price you bid. They still have to approve the price. They may do this or they may counter the price. I can't see this as being a better opportunity than making an offer on a bank owned home listed for sale. With listed homes you have more selection as well as more opportunity to consider your options, outside the frenzied environment of an auction. Much media exposure to these auctions as of late. Understand that when you see a "minimum bid" price advertised that does not reflect the lowest price the property will be sold at. For example at property may show at a minimum bid price of $200,000. It may also show a comparable value at $400,000. The "reserve price" is the price that the owner will actually take for the property and that will usually be some price between those two figures.
If you have any questions, please feel free to email me or call me. I can also send you property reports for homes currently listed for sale in any or all of the above categories.
Millie Fine
CENTURY 21 Aadvantage Gold
Toll free 1-888-449-3463
Home Office 1-702-363-5599
E-Mail Millie!
millie@milliefine.com
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