The goal of HAMP was to help home owners stay in their homes with loan modifications.  The goal of HAFA is to standardize the short sale and deed in lieu process between home owners, lenders, loan service companies (banks), real estate agents, title companies, and any other agency that may have an interest in the property.  This program can provide up to $1,500 to the home owner to help with relocation from the property.

Please let us kniow if you would like additional information on HAFA or HAMP. 

Enjoy

What has caused this flip in the distressed property market in Reno?  The reason for this huge shift from Bank Owned (REO) to Short Sales may be simple.  Today Short Sales mitigate loss much more effectively the Bank Owned (REO) sales.  Finally it would appear that property disposition models and the lenders have finally caught on.  The following example provided by a large Wall Street hedge fund heavily vested in mortgage backed securities (MBS) tells the story and illustrates why this shift is occurring.  

The average loss per foreclosure (REO) is around 65%.  Based on a $100K note the investors net a return of $35K.  On a Short Sale the average loss is 40%.  Using the same $100K example, the investor ends up with $60K return.  That's a 25% increase over the investors net if the property is sold as a Short Sale instead of as an REO.

In summary, Short Sales are on the rise and Bank Owned (REO) properties are declining.  If you would like additional information about Reno Real Estate Trends,or additional information regard Foreclosures versus Short Sales in the Reno Area, just give us a call or a text, or drop us an email.

We are supposed to get 300 plus days of sunshine in Reno each year.  Based upon our current lack of sunshine I guess that it will be sunny every day from March thru December.

Maybe we can buy the Tower of London and move it to Reno on the Truckee River.  It might look nice here.  Then we have to find ravens to guard the tower.

I just want to see some sunshine NOW.

What in the world do leaping lords, French hens,

swimming swans, and especially the partridge who won't come out

of the pear tree have to do with Christmas?

This week, I found out.

From 1558 until 1829, Roman Catholics in England were not permitted to practice their faith openly. Someone during that era wrote this carol as a catechism song for young Catholics.

It has two levels of meaning: the surface meaning plus a hidden meaning known only to members of their church. Each element in the carol has a code word for a religious realitywhich the children could remember.

-The partridge in a pear tree was Jesus Christ.

-Two turtle doves were the Old and New Testaments.

-Three French hens stood for faith, hope and love.

-The four calling birds were the four gospels of Matthew, Mark, Luke & John.

-The five golden rings recalled the Torah or Law, the first five books of the Old Testament.

-The six geese a-laying stood for the six days of creation.

-Seven swans a-swimming represented the sevenfold gifts of the Holy Spirit--Prophesy, Serving, Teaching,  Exhortation, Contribution, Leadership, and Mercy.

-The eight maids a-milking were the eight beatitudes.

-Nine ladies dancing were the nine fruits of the Holy Spirit--Love, Joy, Peace, Patience, Kindness, Goodness,  Faithfulness,  Gentleness, and Self Control.

-The ten lords a-leaping were the ten commandments.

-The eleven pipers piping stood for the eleven faithful disciples.

-The twelve drummers drumming symbolized the twelve points of belief in the Apostles' Creed.

So there is your history for today. This knowledge was shared with me and I found it interesting and enlightening and now I know how that strange song became a Christmas Carol...so pass it on if you wish.'

Of most interest was that no single conventional cause such as type of loan, job loss, or property devaluation can explain the factors that led to most foreclosures in the study.

Click on this link to go to the full report.

Questions and Comments are welcomed.

Please let us know if you have any questions regarding this information  A special thanks to the Northern Nevada MLS for providing this data.

The last time the relative housing inventory was this low was in February 2007.

We are definitely seeing this same trend in Somersett, the Golf Community in the North West Foothills of Reno. We have been both living and working in Somersett since it's beginning six years ago and have not seen an inventory this low for a very long time.

My observations are that total overall sales are trending up, Short Sales are trending up, Regular sales are trending up and Bank Owned or (REO) sales are trending flat.

Following are the total sales percentages for Reno real estate from January 2009 thru October 2009.

Percent of Total Sales

Regular Sales - 37%

Short Sales   - 21%

Bank Owned  - 42%

Compared to 2008 regular sales and short sales are moving up while bank sales are moving downward.

Please let me know if you have any questions.

In April of this year the Financial Accounting and Standards Board (FASB) changed the method in which financial institutions (banks) could value their toxic assets.  Up until April, 2009, the banks had to value their toxic assets using a rule called mark to market.  This meant that if a property that was on their books for a $200K mortgage and is now selling for $100K then the bank had to show a value of $100K for this asset on it's books.  Makes sense right? 

With the change in the Mark to Market Rule (FASB 157), the banks can now future value their toxic assets which allows for a higher book value and can provide the opportunity for a more orderly sale of these toxic assets.  Instead of having to dump these assets onto a declining market, they can now elect to hold the asset at a higher book value (not impacting their balance sheet, capital requirements, and bonuses) and then determine when it makes sense for them to sell the assets over time.  Could this be contributing to a decline in REO properties available for sale?  How all of this will play out in regard to Real Estate is anyone's guess. 

Comments and questions are always welcome at www.RealEsateByGraham.com

Thanks

Along with the 1st time home buyer extension is a tax credit for non 1st time home buyers as well.  You must have used your current home (principle residence) for 5 years in a row of the previous 8 years.  This tax credit is for $6,500 for a married couple and $3,250 for couple filing separate.

Click on this link to see a comparision of these plans.

Please let us know if you have any questions.

Please let us know if you need additional information on any of these properties.

A group of area residents are working to establish a special assessment property tax district to cover the cost of the purchase of this property from it's current owner.  The purchase price for the property is $2.85 million and the proposed assessment district. would raise $2.0 million of the purchase price.  A request will be made to the Washoe County Commission to fund the remaining $850,000 required for purchase of the property.

Please let us know if you have any questions about this purchase. 

After two weeks of delay, the Senate last night cleared the way to pass a seven month extension and expansion of the tax credit for homebuyers.  By an 85 to 2 roll call vote, the Senate voted to cut off debate on a package of measures that includes the homebuyer credit, making it virtually certain that the legislation will reach President Obama for his signature this week.

The homebuyer tax credit, due to expire in 28 days, would be extended through April 30 of next year.  First-time buyers who are in process of making a purchase would not need to worry about qualifying for the $8,000 credit if they close after the November 30 deadline.

For the first time, the legislation cleared last night makes move-up buyers as well as first-time buyers eligible for a credit.  The $8,000 maximum first-timer credit will continue and will now be available to couples with income up to $225,000, a nearly $55,000 increase above the level in existing law.  A new $6,500 maximum credit would also be available to move-up homeowners who have lived in their current residence for five of the prior eight years..

Key lawmakers in the senate have tentatively agreed to extend the existing $8,000 tax credit for first time buyers & also offer a new $6,500 credit for existing home owners who have lived in their current residence for a consecutive five year period in the past eight years.

Home buyers must be under contract by April 30th 2010 and close by July 1st 2010.

Inventory is low, if you are thinking about buying call us!

Laurence Juber is an amazing guitar player.  He was the lead guitarist with the band Wings and continues to play some of the Beatles works as well as his own compostions.

Following is a video of Laurence playing Maybe I'm Amazed.  Enjoy

Average Sales Price to List Price Survey - September 2009

Move-In Ready Bank Owned (REO) Properties - 99% of List Price

Damaged Bank Owned (REO) Properties - 95% of List Price

Regular Sales (not Bank Owned or Short Sales - 94% of List Price

Short Sales (Pre-Foreclosure) - 93% of List Price

You can see from these statistics that the list of sales price range is in the 93% to 99% range.  Real Estate is a local market and these statistics will vary from region to region however buyers that still expect to see major reductions are probably in for disappointment.

Multiple offers are once again becoming more prevalent.  If you are looking for property that is priced below the current market you can expect to see multiple offers for the property.  Following are the September, 2009 statistics for multiple offers per category:

Average Number of Offers:

Move-In Ready Bank Owned (REO) Properties - 4 Offers

Damaged Bank Owned (REO) Properties - 3.7 Offers

Regular Sales (Not Bank Owned or Short Sales) - 2.8 Offers

Short Sales (Pre-Foreclosure) - 1.8 Offers

For further information regarding the statistics in your local market you should contract a local real estate professional.

1. Protects silver from tarnishing

2. Removes road tar & grime from cars

3. Cleans and lubricates guitar strings

4. Gives floors that "just waxed" sheen without making them slippery

5. Keeps flies off cows (too funny!)

6. Restores & cleans chalkboards

7. Removes lipstick stains

8. Loosens stubborn zippers

9. Untangles jewelry chains

10. Removes stains from stainless steel sinks

11. Removes dirt and grime from the barbeque grill

12. Keeps ceramic/tera cotta garden pots from oxidizing

13. Removes tomato stains from clothing

14. Keeps glass shower doors free of water spots

15. Camouflages scratches in ceramic and marble floors

16.Keeps scissors working smoothly

17. Lubricates noisy door hinges on vehicles and doors in homes

18. Removes black scuff marks from the kitchen floor

19. Removes bug guts from your car

20. Gives a children's playground gym slide a shine for a super fast slide!

21. Lubricates gear shift and mover deck lever for ease of handling on riding mowers

22. Rids kid's rocking chairs and swings of squeaky nosies

23. Lubricates tracks in sticking home windows and makes them easier to open

24. Spraying an umbrella stem makes it easier to open and close

25. Restores and cleans padded leather dashboards in vehicles, as well as vinyl bumpers

26. Restores and cleans roof racks on vehicles

27. Lubricates and stops squeaks in electric fans

28. Lubricates wheel sprockets on tricycles, wagons, and bicycles for easy handling

29. Lubricates fan belts on washers and dryers and keeps them running smoothly

30. Keeps rust from forming on saws, saw blades and other tools

31. Removes splattered grease on the stove

32. Keeps the bathrrom mirror from fogging

33. Lubricates prosthetic limbs

34. Keeps pigeons off the balcony (they hate the smell)

35. Removes all traces of duct tape

36. Folks even spray it on their arms, hands & knees to relieve arthritis pain

37. Florida's favorite use is: "cleans and removes love bugs from grills and bumpers

38. The favorite use in the state of New York, WD-40 protects the Statue of Liberty from the elements

39. WD-40 attracts fish. Spray a little on live bait or lures and you will be catching the big one in no time

40.Takes the sting out of fire ant bites and stops the itch

41. Removes crayon from walls. Spray on the mark and wipe with a clean rag

42. Also, if your teenage daughter has washed and dried a tube of lipstick with a load of laundry, saturate the lipstick spots with WD-40 and re-wash. Presto! the lipstick stains are gone

43. If you sprayed WD-40 on the distributor cap, it would displace moisture and allow the car to start.

PS: The basic ingredient is FISH OIL!

Which is your favorite?