Foreclosure starts surge in Western states
By Inman News
Foreclosure starts jumped by double digits from July to August in four out of five Western states tracked by ForeclosureRadar, reversing what had been a declining trend over the past several months, the company said.
The increase in foreclosure starts seen in Arizona, California, Nevada, Oregon and Washington appeared to be driven primarily by Bank of America and related companies, which boosted notice of default and notice of trustee sale filings by 116 percent from July to August.
Wells Fargo and US Bank also ramped up foreclosure start filings, ForeclosureRadar said, while filings by JP Morgan Chase and Citibank were essentially flat, ForeclosureRadar said.
In California, foreclosure starts jumped nearly 70 percent from July to August, totaling 31,965 — the highest level in a year. The average time to foreclose in California increased to 333 days in August, 49 days longer than a year ago.
Notice of trustee sale filings were up more moderately, rising 6 percent from July to August but still down nearly 24 percent from a year ago at 24,020.
California properties sold back to the bank (REO) increased 12 percent from July, to 11,104, down nearly 23 percent from a year ago. Sales to third parties on the courthouse steps were up 10 percent from July, to 3,853, an 11 percent increase from a year ago.
California foreclosure inventories remain down or flat from a year ago. Banks had 107,000 REO homes on their books — about the same as in July — and the number of homes scheduled for trustee sale was down nearly 24 percent from a year ago, to 94,000.
Homes in preforeclosure — those already hit with a notice of default but not yet scheduled for sale — jumped 20.5 percent from July to August, to 134,000. That was 10 percent below the preforeclosure number in California a year ago.
In Arizona, notice of trustee sale filings — the first step in the foreclosure process in that state — were up nearly 15 percent from July to August, to 7,060. That’s 34 percent below the same time a year ago. Time to foreclose in August was flat from July at 175 days, but up 15 percent from a year ago.
The number of Arizona homes going back to the bank as REOs fell 8 percent from July and 43 percent from a year ago, to 3,068. Sales to third parties on the courthouse steps were up 5 percent from July and 39 percent from a year ago, to 1,666.
Banks had 25,278 Arizona homes in their REO inventories, down 5 percent from July and 22 percent from a year ago. Another 35,860 had been hit with a notice of trustee sale filing, down 3 percent from July and 38 percent from a year ago.
In Nevada, notice of default filings jumped 44 percent from July but were down nearly 14 percent from a year ago, to 6,108. Time to foreclose jumped 14 percent from July to August, reaching a new record of 368 days.
Notice of trustee sale filings slipped for the fifth consecutive month, dropping 10 percent from July and 43 percent from a year ago, to 3,523.
Banks took back 1,805 Nevada homes, up 1 percent from July but down 14 percent from a year ago. Properties sold to third parties on the courthouse steps rose 20 percent from July and 28 percent from last year, to 786.
Foreclosure inventories were down or flat from a year ago. Banks had 16,425 REOs on their books, down nearly 5 percent from July and from a year ago.
The number of properties scheduled for sale was down 9 percent from July and 40 percent from a year ago, to 7,758. Homes in preforeclosure jumped nearly 26 percent from July to 47,509, down 14 percent from a year ago.
Washington saw a 3 percent increase in notice of trustee sale filings from July to August, reversing four months of consecutive declines. Activity on the courthouse steps slowed as foreclosures sold back to the bank (REOs) dropped 30 percent month over month, and foreclosures sold to third parties — typically investors — were down 33 percent. Time to foreclose was nearly flat in August at 104 days.
In Oregon, notices of default were up 36 percent from July to August, but filing activity was down 46 percent from a year ago. Properties sold back to the bank rose 243.3 percent from July as Recontrust, a subsidiary of Bank of America, began to clear the 2,800 foreclosures it started in April.
Properties sold to third-party investors were up 46 percent from July and 17.4 percent from a year ago. Time to foreclose dropped in August for the second month in a row, falling nine days from July, to 150 days.
July 2011 Las Vegas Housing Statistics
The above two charts compares the percentage of “Cash” sales to “Financed” sales for the first six months of 2010 and 2011. The majority of cash sales are investor buyers. In general, the house prices purchased by investors are less than properties purchase by buyers who borrow the funds. This trend is one reason that Las Vegas home values are not increasing.
The number of Las Vegas Bank Owned and Traditional sales for 2011 has exceeded the number of sales in 2010. This increase in number of sales could be attributed to the increase in “cash” buyers as indicated on the “Cash vs Financed” chart above.
If you are looking to buy or sell Las Vegas real estate, contact Travis Breton at 702-501-2752 or visit http://vegaslistingservice.com
SB 314 Nevada Law Update to the Sellers Real Property Disclosure
If you have purchased a Las Vegas bank owned home or even a Las Vegas short sale home in recent years, chances are that you were asked to sign a NRS 113 or commonly know as the “As-Is” waiver at some point during the sale. This “As-Is” home sale waiver is going away in the state of NV and Las Vegas home sellers will now be required to provide the SRPD for just about every 1-4 unit residential sale.
SB 314 made two significant changes to the Seller’s Real Property Disclosure (SRPD) statutes in NRS 113.
First, the purchaser may no longer waiver any of the rights set forth in NRS 113.130(1). That’s right – no more SRPD waivers! (The NRS 113 waiver form will be removed from ZipForm® as of October 1, 2011.)
Additionally, the legislature went one step further in eliminating the SRPD waiver, stating: “A seller of residential property may not require a purchaser to waive any of the requirements of subsection 1 as a condition of sale or for any other purpose.” There is no question that SRPD forms must be supplied by the seller in all transactions not exempt by statute. REO properties do not fall into an exemption. REO brokers and agents should work with their clients to draw their attention to this new law and discuss compliance.
One type of transaction that is exempt from the SRPD is the actual “courthouse steps” foreclosure auction sale (i.e., the Trustee’s sale). SB 314 also amended what must be provided to the successful bidder. Previously, the trustee or beneficiary of the deed need only supply written notice of any defects they were aware. This disclosure has been broadened to include the contact information of the asset management company who provided asset management services to the property if any defects were repaired or replaced – or attempted to be repaired or replaced – in the home prior to the Trustee sale. The asset management company is required to provide the successful bidder with a copy of any service report upon request.
If you are looking to buy or sell Las Vegas real estate, contact Travis Breton at 702-501-2752 or visit http://vegaslistingservice.com.
Information provided by LasVegasRealtor.com
Las Vegas Home Sales Statistics for June 2011
Good News! The number of closed Las Vegas home sales for all three categories increased during the second quarter of 2011 over the first quarter of 2011. These buyers have recognized that Las Vegas home values are near or at the lowest point they may ever witness again. The message is clear to Las Vegas home sellers if they price their property correctly and it will sell.
During the second quarter of 2011 the median sale price for each of the three categories was slightly less than the first quarter of 2011. This confirms the old saying – “if you price it right, it will sell!” The Las Vegas median home price has been going up one month and down the next for several quarters indicating we’re on or near the bottom of home prices.
Las Vegas Property Boundaries
Fences should not be considered an indication of property boundaries. Legal property boundaries are demarcated by surveyor pins or stakes. These are typically 1/2″ to 3/4″ round iron pipes flush or buried slightly below land surface. Newer pins might have yellow or orange caps that indicate the surveyor’s license number.
Locating Las Vegas property lines can be challenging. Older surveyor pins tend to erode. Older property markers could be metal posts, rebar, pipes or car axles. Those having difficulty locating their surveyor pins, also called corner pins, should contact their city or county government and get a copy of their plat map.
A plat map will identify each specific lot located in a subdivision — as well as the shape and dimension of the lot — and where the surveyor pins are located.
If a plat map is not available, or no pins are found, the next step is to contact a registered land surveyor to locate the Las Vegas property lines and set new surveyor pins. The boundary surveyor will thoroughly research city and county records relating to the land and all adjacent property. After research, the field work begins, reconciling the research with the onsite analysis on the property to determine the final boundary lines.
Boundary surveys might also include property improvements, fences, power lines and any encroachments crossing the property lines. Costs of a boundary survey can vary depending on property size, terrain, vegetation, location and season.
A survey is strongly recommended before subdividing, improving or building on land. Building beyond property lines could result in being forced to alter or remove a structure, fines and lawsuits.
Information provided by Jeremy Daugherty
Click here to apply for a Las Vegas home loan online:
http://www.myprospectmortgage.com/JDaugherty
Jeremy Daugherty
District Manager
Prospect Mortgage
NMLS# 353495
2370 Corporate Circle, # 200
Henderson, NV 89074
Office: (702) 492-4664
Cell: (702) 580-9000
Fax: (877) 580-9001
[email protected]
Month of May Las Vegas Real Estate Sales Statistics
Average Days on Market from List Date to Contract Date
Good news is hard fine these days, but this chart demonstrates “some” good news for Las Vegas real estate. The average time it takes to close a Las Vegas home sale has decreased from Feb thru May, 2011. For those who own Las Vegas real estate, we certainly hope this trend continues.
2011 New Single Family Listings by Month
It’s interesting to see the number of new Las Vegas Short Sale listings decreasing from Jan thru May, 2011, while the number of Las Vegas Bank Owned listings (REO’s) is increasing.
2011 Sold Single Family Listings by Month
The number of Las Vegas Bank Owned home sales continues to exceed Traditional and Las Vegas Short Sale listings. You will also notice that the number of Las Vegas Short Sale closings has fallen below the number of Traditional sales.
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Follow the link to learn how “Home Ownership Matters!”
2010 Las Vegas Home Sales Statistics Recap
Here is a recap of how Las Vegas home sales ended up for 2010. The number of Las Vegas Bank Owned sales has exceeded Short Sales or Traditional Sales during 2010, even though there are more new Short Sale listings. Banks are motivated “sellers” and are under pressure from the regulators to reduce their Las Vegas Bank Owned inventory. This trend should continue throughout 2011.
During the first three quarters the number of Las Vegas listings increased, but the numbers decreased during the fourth quarter. The first quarter of 2011 will indicate if this trend continues. There were more Las Vegas Bank Owned properties under contract during the first three quarters. However, in the fourth quarter, Short Sales under contract exceed Short Sale listings by a small margin. Traditional properties under contract remained consistent during the year. The trend of the Las Vegas housing market being dominated by Bank Owned properties is expected to continue, at least throughout 2011.
It is interesting to compare the average list price (below) with the average median sale price (Above) by property type. The Traditional properties are selling for an average selling price that is less than the list price. The Las Vegas Bank Owned and Short Sale properties are being sold at an average sales prices higheror the same as the average list price. Why? One would assume the “Banks” are more motivated to sell than the “traditional” seller. It will be interesting to see if this Las Vegas housing market trend continues!
For more information on the Las Vegas real estate market contact Travis Breton at 702-501-2752 or visit http://vegaslistingservice.com
Property Disclosures: Seller Required, Buyer Desired
One of the most important aspects of a Las Vegas real estate transaction is finding out as much as one can about the property before completing the sale. For Las Vegas home sellers, this means being up front about certain issues, and for buyers this means doing what’s known as due diligence: having the property inspected, reading and understanding the seller’s disclosures, and asking as many questions as you need to feel comfortable buying the Las Vegas home.
Both sellers and buyers will receive from their Las Vegas real esate agents a booklet called the “Residential Disclosure Guide” written by the Nevada Real Estate Division. The booklet is designed to increase consumer awareness and understanding of the Nevada real estate disclosures that may be required in a residential transaction. It lists and explains disclosures required by federal, state and local laws.
One piece of the Nevada real estate disclosure puzzle is the Seller’s Real Property Disclosure form, also known as the SRPD. With a few limited exceptions, the SRPD is required to be provided by a Las Vegas home seller at least 10 days prior to the conveyance of the property. (Contractual provisions may shorten that time frame.) The seller should use care when completing the form, and answer all questions truthfully as to what they are aware of in the property. Failure to provide the form or to answer untruthfully may have serious consequences under Nevada real estate law. For example, if the seller knew there was mold in the Las Vegas home and failed to disclose it, the buyer could sue and recover three times the amount of money it took to fix the mold problem.
When reviewing the SRPD, buyers should make note of any answers that may concern them, and ask the Las Vegas REALTOR® representing them to follow up with the listing agent. If any questions on the form are left unanswered, the buyer may request a response. Buyers should also be mindful of their statutory right to cancel the transaction with a written, signed and notarized cancellation notice within 4 business days of receiving the SRPD. The buyer may also waive the SRPD.
Nevada real estate law does not require a seller to disclose a home defect of which he is not aware, nor does the SRPD constitute an express or implied warranty regarding any condition of residential property. Additionally, the law does not relieve the buyer of the duty to exercise reasonable care to protect himself.
For questions on buying or selling Las Vegas real estate, contact Travis Breton at 702-501-2752 or visit http://vegaslistingservice.com
Las Vegas Property Taxes: What’s Your Number?
The Clark County Assessor has published the Las Vegas property tax assessment rolls for the 2011-2012 tax years. Las Vegas real estate owners who missed their postcard in the mail may go online to view their 2011-2012 assessment information.
The amount of Las Vegas property taxes a homeowner pays is determined by multiplying the tax rate by the assessed value of the property, both land and improvements (the home). Nevada law (NRS 361.225) states that the assessed value of a property is based on a ratio of 35 percent of the taxable value which is determined by guidelines established by the State Department of Taxation. Nevada law prohibits a taxable value that exceeds the full cash value of the Las Vegas home, and the county assessor is required to make a reduction if the owner calls to his or her attention the facts warranting it. The Clark County Assessor may consider comparable sales based on prices actually paid in market transactions when determining whether taxable value exceeds full cash value.
So, even if you can’t change the tax rate, you can try to do something about how your Las Vegas real estate is valued. Review your assessment for accuracy, including the size of your lot and the number of bedrooms and bathrooms. Research the assessed value of other comparable Las Vegas real estate in your neighborhood; if they’re being assessed differently, you may have a case for relief. Review your taxable value and check with a Las Vegas REALTOR® to determine comparable sales in your area if you believe the taxable value is too high.
Homeowners who believe that the market value of their Las Vegas real estate is less than the taxable value listed on the assessment roll or believe that they were assessed differently than comparable property may contact the Clark County Assessor Office Appraisal Division at 455-4997 for an explanation of the values. If not satisfied after speaking with the Clark County Assessor Office, a Las Vegas real estate owner may file a petition with the County Board of Equalization for a review of the values. The petition must be filed on or before January 18, 2011. The petition forms are available in the Clark County Assessor Office, located at 500 S. Grand Central Parkway, second floor.
Even if your assessment is accurate and comparable Las Vegas real estate are being taxed at the same rate, there might be another way to see some Las Vegas property tax savings. Nevada law provides for several exemptions for individuals who meet certain requirements. Exemptions include surviving spouses, veterans, disabled veterans and blind persons. Click here for more information or check with the Clark County Assessor office.
Nevada also offers a Senior Citizen Tax Assistance/Rental Rebate program to persons 62 years of age or older whose annual household income (including Social Security) was $28,677 or less during calendar year 2009. Applicants must meet additional requirements; click here to learn more about the senior citizen program.
Looking to buy or sell Las Vegas real estate? Contact Travis Breton at 702-501-2752 or visit vegaslistingservice.com
This article provides general information about tax laws and consequences, but is not intended to be relied upon by readers as tax or legal advice applicable to particular transactions or circumstances. Please consult a tax professional for such advice.
Understanding the New Energy Consumption Disclosure
As of January 1, 2011, any seller of Las Vegas residential real estate property is required to provide the buyer with an energy consumption evaluation form published by the Nevada Energy Commissioner. The Energy Consumption Disclosure form must be provided prior to closing. A copy of the form is available here. The buyer and seller may choose to waive the Energy Consumption Disclosure form requirement. The waiver form is found on the last page of the Energy Consumption Disclosure form.
The Energy Consumption Disclosure form is designed to give the buyer basic information about the Las Vegas home they are purchasing, its mechanical and lighting systems, the seller’s consumption of power and gas, and any energy efficient home features such as Energy Star labeled appliances. The seller must use a good faith effort to obtain “reasonably available” information to complete the Energy Consumption Disclosure form. For example, the seller must check for any visual labeling on a device to answer questions about that device.
Nevada Energy and Southwest Gas have each agreed to assist a homeowner in completing the Energy Consumption Disclosure form by making the consumption and cost easily available by phone or online. Contact NV Energy in southern Nevada at (702) 402-5555, or online at NVEnergy.com; contact Southwest Gas toll free at (877) 860-6020.
An energy audit/inspection is not required, although a buyer may choose to have such an audit completed by a certified Las Vegas inspector. This is similar to the buyer’s option to have a Las Vegas home inspection performed. Additionally, buyers should understand that many factors affect a seller’s energy consumption, including the number of persons occupying the home and the seller’s lifestyle, which may be more or less energy-conscious than the buyer’s.
Looking to buy or sell Las Vegas real estate? Contact Travis Breton at 702-501-2752 or visit vegaslistingservice.com
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