Investor Central

Welcome to the premier resource for Las Vegas investors looking to generate wealth through real estate. Whether you already own a property and need management help or you need assistance to get started, you have found the right place.

Tuesday, June 29, 2010

Fannie Mae Cracking Down on 'Strategic Defaults'

Fannie Me is toughening its stance on going after borrowers who walk away from their homes they can still afford. The strategy of walking away from the home due solely to it being underwater is known as strategic defaults, and Fannie Mae (who along with Freddie Mac back more than half of all mortgages) is cracking down on the practice.
DS News recently reported… "Under these changes, defaulting borrowers who walk away and had the capacity to pay or did not complete a workout alternative in good faith will be ineligible for a new Fannie Mae-backed mortgage loan for a period of seven years from the day of foreclosure. In addition, Fannie Mae said it will take legal action to recoup the outstanding mortgage debt from borrowers who strategically default on their loans in jurisdictions that allow for deficiency judgments." Nevada is a deficiency judgment state.  
Fannie Mae or Freddie Mac’s policies often are a guiding post for other servicers and lenders given their size in the market.  This new policy in addition to the recent policy change allowing for a new purchase within 2 years of completing a short sale, makes short sales the best option for truly distressed homeowners.

DS NEWS Article:

More New Rules from Fannie Mae

The GSE has issued new servicing guidelines stating that effective July 15, 2010, all servicers must verify the borrower’s income, liabilities, and monthly expenses before a loan modification can be offered.
“The servicer must not agree to change the terms of a mortgage loan until the servicer receives and evaluates the financial information required to verify that the borrower has a hardship, determines that a permanent standard Fannie Mae mortgage modification is the appropriate foreclosure prevention alternative, and obtains Fannie Mae’s prior written approval,” according to the newly issued guidelines.
Prior to granting a modification, the servicer must determine the borrower’s total assets. The liabilities provided by the borrower on financial forms must be compared to a recent credit report, and monthly gross income must be verified. Fannie says the servicer may rely on verbal information obtained from the borrower to document monthly living expenses in its servicing system.
The GSE also reiterated in its guidelines that servicers must require the borrower to make a cash contribution, if financially feasible, toward reducing the delinquency.
In addition, Fannie Mae says if a borrower becomes 60 or more days delinquent within the first 12 months of receiving a modified loan, then the servicer must immediately work with the borrower to pursue either a short sale or deed-in-lieu, or commence foreclosure proceedings. If the servicer determines that another modification is appropriate for the borrower, the servicer must first obtain Fannie Mae’s written approval to try a new loan restructuring.
Servicers may continue to process modifications that were previously evaluated based on stated income prior to July 15. Mortgage loans that are eligible for Fannie Mae’s Alternative Modification program are not subject to the new “hardship” documentation requirements.
The new income verification rules come just days after Fannie Mae announced new policy changes intended to deter financially competent homeowners from strategically defaulting on their mortgage.
Borrowers who walk away from their loan obligation and had the capacity to pay or did not complete a workout alternative in good faith will be ineligible for a new Fannie Mae-backed mortgage for a period of seven years from the day of foreclosure. The GSE says it will also take legal action to recoup the outstanding mortgage debt from strategic defaulters in jurisdictions that allow deficiency judgments.

Thursday, June 24, 2010

Mortgage Rates at 4.69%

Freddie Mac reported today that mortgage rates have dropped to 4.69% - the lowest rate on record (dating back to 1971)! Combined with affordable home prices there hasn’t been a cheaper time to buy real estate in recent memory. With low carrying costs, it also is a prime opportunity to purchase rental or cash flow properties.   

See Freddie Mac’s news release:

Wednesday, June 16, 2010

Fannie Mae Unveils Own HAFA Program

On June 1, 2010, Fannie Mae introduced its own Home Affordable Foreclosure Alternatives (HAFA) Program, which, like the HAFA program issued by the U.S. Treasury, is designed to mitigate the impact of foreclosures on borrowers who are eligible for a loan modification under the Home Affordable Modification Program (HAMP) but ultimately did not complete a modification.

Monday, June 14, 2010

Silver State Arena Project

Great article on the plans for Silver State Arena. Seems to be the likeliest project to go forward as it doesn’t require public funds up front. Could be 10K-plus jobs, and lure a pro sports team.

If you haven’t seen the artists rendering for it – see this site also:

Saturday, June 5, 2010

Commercial Market Upswing?

In this week’s Las Vegas Business Press, a great article on the potential of the commercial market to recover sooner than thought. The fact that nothing new will be built in the next couple of years is helping bring down inventory among existing space. Landlords are incentivizing tenants with free rent and other strategies to fill their higher priced locations.

See the article here: