Is B of A Finally "Getting It" on Short Sales?

Yes, it actually DOES look like Bank of America is finally getting their act together in the Las Vegas real estate market on short sales! We have seen a marked improvement in service and approval times over the past six months, and just recently B of A has rolled out two new changes to improve their image.

The first big change is their new Bank of America Cooperative Short Sale program, similar to the government's HAFA program (but hopefully much more effective!) B of A is now allowing sellers to apply for a pre-approved short sale prior to listing their home with a real estate agent and without a purchase contract. The seller must complete all the short sale documents including their hardship letter, and must submit all their current financials to the Bank. Once the bank reviews the seller's package, it is submitted to the investor holding the loan for final approval. If the seller is approved, they are given a guaranteed approved sales price AND they may also receive up to $2500 as a moving incentive, kind of a cash for keys.

Our first two attempts at this process have been resoundingly successful: both sellers were fully approved within three to four weeks of submitting their packages, and the prices were realistic. Both Las Vegas homes were placed on the market and both sold within a couple of weeks. One has already closed and the other is due to close next week.

This is a HUGE win for sellers, buyers, agents, lenders and title companies. As long as the sales contract follows the terms of the bank's approval, there is no more wondering for months on end if you even have a sale! Having guaranteed approvals on short sale will also reduce the number of homes for sale in Las Vegas in the near future. And it's smart on B of A's part, because a pre-approved short sale will garner a higher list price and improve their bottom line.

The second big change is that now Bank of America will allow back up offers to be submitted, so that if the first buyer walks or fails to qualify during the escrow, the second buyer's contract may be substituted without starting the approval process all over again. The listing agent can continue with the original transaction in Equator and still work with the same short sale specialist. This change will save several weeks of time by not having to repeat a number of the short sale process steps.

Since over half of Las Vegas short sales are being processed by Bank of America, this is GREAT news. Hopefully some of the other big banks will follow B of A's lead since the current government has already proven hopelessly inadequate for the task. Kudos to B of A for thinking outside of the box and keep it up.

Celebrity Lawsuit Over Las Vegas Real Estate

Las Vegas is in the news again, but this time the scoop involves a celebrity lawsuit over Las Vegas real estate. It seems Baywatch star Pamela Anderson is suing developer Laurence Hallier for $1M, and Hallier is counter suing Anderson for $22M for loss of sales in the Panorama Towers high rise project.

Panorama was originally slated to be a four building high rise development directly behind the MGM City Center project. Hallier completed two of the buildings, and in April of 2006 Pamela Anderson hosted the ground breaking for the third tower, previously known as Panorama North. But a collapse of the U.S. economy and the local Las Vegas housing market left Hallier and his business partners short of funds. The building was sold to pay off debt and Panorama North became “The Martin” which recently launched its new brand.

Anderson’s claim: She had agreed to give public appearances to promote the Panorama high rise development in exchange for a penthouse suite of her own. Part of the deal was that if the condo was not finished on time, she would receive $1M in cash for her efforts. She filed suit against Hallier claiming that she never received the condo or the agreed upon fee of $1 million. (Leonardo di Caprio did receive a condo in exchange for his sales efforts.)

Hallier’s counter claim: Anderson reneged on promotional appearances which led to him losing $22M in condo sales.

As one who has never been more than a 5 on her best day, just on general principal I have to hate a perfect 10 like Pamela Anderson who sets the bar way too high for most mortal women. (Please don’t take this personally, Pamela. I also hate Sophia Loren, Raquel Welch, Farah Fawcett, Claudia Schiffer, Heidi Klum and Jennifer Lopez among others, not to mention Virginia Saunders from 8th grade who stole my childhood sweetheart with her blond cover girl looks.) But to hold Anderson responsible for losing $22M in condo sales?

I have no idea whether or not Anderson’s claim for $1M in lieu of a condo is valid, as I am not privy to the contracts she signed with Hallier. Obviously Anderson did perform at least some of her promotional duties. But my personal experience in the local Las Vegas housing market does lead me to believe that Anderson should not be held accountable for a loss in sales. Celebrities may be able to attract star struck fans to promotional functions and generate initial interest in a new development, but a real estate project stands on its own merits as to whether or not those fans will buy.

Over the past 28 years we have had countless buyer requests for homes “near Celine Dion” or “close to Wayne Newton’s ranch,” or “within walking distance of Andre Agassy.” (And yes, I hate Celine too.) None of these buyers actually purchased Las Vegas homes. Most just wanted the chance to get close to the star of their dreams for a brief instant. (We have learned the hard way to ask for financials before putting these marginal prospectives in the car.)

So in my opinion Hallier’s countersuit for $22M in lost revenue is frivolous and should be dismissed. As for Pamela’s suit, who knows? And maybe she really needs the money to pay for the renovations to her Malibu home. After all, she and her kids are currently living in a trailer park waiting for the work to be done.

But if anyone really does want to purchase a condo near Leonardo DiCaprio, we have some lovely Las Vegas foreclosures for sale in Panorama Towers for half the original cost!

When Las Vegas Real Estate Was Hotter Than Hot

Remember the good old days, when Las Vegas real estate was hotter than hot? The bad news back then was that if you were looking for a good deal in Vegas, you were better off in the casinos than in the home market. The good news for home buyers today is that the housing market in Vegas has cooled off considerably and now is an excellent time to buy.

According to a recent study done by Deutsche Bank cited by CNN Money, Las Vegas is 6th on the list of top 10 most affordable housing markets! That's a real turnaround from just a few years ago when many people were priced out of the Las Vegas real estate market and forced to put their dreams of living here on hold.

The study looked at the percentage of their income that average Vegas homeowners pay into their homes after tax. It found that the current percentage is 9.8%, down from 17.2% at the height of the housing bubble in 2007. The study also looked at the cost of home ownership in Las Vegas versus renting. Here are the statistics for the Las Vegas housing market:

Rent as a % of after-tax mortgage payment: 125.1%
Median home price change, 2006-2010: -56.5%

Due to the number of foreclosures in Las Vegas, the rental market here is booming. Many of these renters have lost their homes to foreclosure and are unable to buy an affordable home due to bad credit. This opens the door for cash buyers and those with good credit and/or no home sale contingency to get fantastic deals on available homes.

According to Dotan Melech of UnitedAMS, more than half of the sales in Las Vegas are cash, and if you are buying a Las Vegas condo, cash may be your only option. Companies such as UnitedAMS are buying up foreclosures to rent them out. With high occupancy rates comprised of reliable renters who lost their homes, the Las Vegas real estate market for rentals is a good investment.

It’s something to think about for both those looking to buy and those looking to invest in Las Vegas real estate. Prices are competitive, rental income is steady and prices will only rise in the coming years. Is now the time to buy Las Vegas real estate? All indicators say yes, and experts are advising that prospective homeowners jump in before the market heats back up.

This article was written by Beth Hrusch, an expert
in the Las Vegas category at http://www.yoexpert.com/