Bank Foreclosures Start Again in Las Vegas, but…

First, a little background:

Most large banks (Bank of America, Wells Fargo, etc.) are members of MERS, the Mortgage Electronic Registration System. This system allows a third party entity, like Recon Trust, to transfer notes between members of the system without recording the deed of trust into the new note holder’s name. So the name on the deed of trust and the name of the new note holder do not match since MERS was not required to record these documents. This made it difficult, if not impossible, for a homeowner facing foreclosure to actually find out who was foreclosing on them and try to work out an agreement. Many homeowners were foreclosed upon without ever being able to contact the existing note holder.

So in light of these national “robo signing” scandals, Nevada was among 11 states that enacted legislation to protect homeowners and regulate illegal foreclosure activity. In Nevada, Assembly Bill 284 was passed which required a bank employee to sign an affidavit stating that to the employee’s personal knowledge all previous transfers of the note were correct before the bank could start the foreclosure process.

Since there is no bank employee that could possibly attest to previous transfers of a note, AB284 effectively stopped the Las Vegas bank foreclosure process in Nevada, and foreclosure filings dropped from around 6,000 per month to less than 1,000. (Not all banks were affected by AB284 since they were not members of the MERS system.)

In October of 2012, however, the Nevada Supreme Court ruled that banks using the MERS system would be able to foreclose on properties as long as the note holder and the name on the deed of trust matched prior to the foreclosure sale.  This ruling will allow the third party entities used by MERS to record a deed of trust in the name of the current note holder and consummate the foreclosure process. Recording the deed of trust gives homeowners the opportunity to contact the note holder and work out a settlement, but doesn't allow them a "free ride" to stay in their homes indefinitely with no payment.

What this means for the Las Vegas real estate market:

The housing inventory has been at an extreme low for the past eight months, with bank owned foreclosures of Las Vegas single family homes accounting for only 10% of the active listings at any given time. Active short sales account for about 20% of the active single family listings and the rest are “real” sellers. It’s a “seller’s” market, prices have risen steadily since January, there are multiple offers on most listings within days of coming on the market, and buyers are finding it difficult to make a purchase unless they bid above appraised value.   

Banks have started the foreclosure process again, and we do expect new inventory to begin hitting the market after the first of the year, probably in or March or April. However, the banks do still have very stringent hoops to jump through, and there is no huge wave expected all at one time. Still, there should be more listings on the market, allowing frustrated homebuyers the opportunity to finally get an offer accepted. Hopefully we will get back to a more balanced market that remains steady for the next few years. A balanced market is better for both buyers and sellers and the local economy.

Search our site for foreclosures by zip code.

Las Vegas - the Gourmet Capital of the World?

Back in the day, the all-you-can-eat buffet for $2.99 is what everyone talked about when they came to visit Las Vegas. After a night of carousing on Fremont Street, we would pile into the Golden Nugget for the late night steak and lobster special for only $5.99 or the 50 cent shrimp cocktail. But our tastes and expectations have changed a bit.

 

It all started back in 1992 when Wolfgang Puck opened Spago at Caesars Palace. Now he has seven restaurants in Vegas, including one at McCarren Airport.

 

Eight years later in 2000, there were still only two more adventurers: Emeril Lagasse and Bobby Flay. Today there are many more famous chefs opening signature restaurants and trying their luck at new culinary ideas. I’m thankful so many wonderful chefs have decided to use Las Vegas as a “tasting ground” for their innovative ideas. The service quality is usually remarkable along with the unique food combinations. (It's one of the things that makes living in Las Vegas so amazing. We have more five star gourmet restaurants and chefs per capita than any other city in the world.)

“What’s THAT!?!?!” has become a key phrase based on Kitchen Nightmares, and many people watched Chef Gordon Ramsey choose his executive chef on Hell's Kitchen for his recently opened Steak House at the Paris Hotel. There’s a sign on a wall at Caesars Palace touting a new restaurant coming soon (Love the pig silouette covered in a UK flag design). We all wonder how Gordon Ramsey finds the time to do it all (and many of us now fear searing scallops).

 

Also at Caesars is Mesa Bar and Grill owned by Bobby Flay. The outer wall is made of glass so you can see across the tables into the kitchen. One word: Tapas! 

 

Turn to the right and down the hallway you’ll see another sign on a wall stating only one word: NOBU. Hard Rock Hotel hosts one of Nobu’s Japanese fusion restaurants which offers zen-like décor with excellent customer attentiveness, but what’s in the works at Caesars is nothing short of spectacular! Nobu is opening an exclusive restaurant AND his first ever Nobu Hotel. It’s so beyond words, I can only share the link: https://www.totalrewards.com/nobu/ 

BAR, BOOK and BAM? Check out Emeril Lagasse’s Stadium at the Palazzo or Emeril’s New Orleans Fish House at the MGM Grand. The list goes on and on, so if you’re a Food Network fan, Wanna Be Chef, Foodie, or just want a glimpse of a Famous Chef – be sure to make reservations and expect to pay a high price for a high quality dining experience in the “tasting ground” of Las Vegas.

 

by Guest Blogger and Food Junkie
Lisa Albarian
Writer for the Las Vegas Real Estate Market News Blog

 

What Foreign Buyers Need to Know

We have received several requests lately from overseas buyers about what the requirements are for foreign nationals who want to purchase property in Las Vegas. Actually the process is pretty simple - we have listed the guidelines below:

1.       Except for Canadian citizens buying second homes in the States, most foreign nationals will need to purchase with cash because the financing for foreign nationals has really dried up. They will need to bring proof of funds, a current bank statement or a bank letter of credit, in order to submit an offer.

2.      They will need to have a US bank account with cleared funds. So all money for the purchase should be placed in a US bank with enough time for the funds to clear. If they wire in the money, it will only take a couple of days for the funds to clear.

3.       There are no special taxes or fees for foreign homebuyers using the property as a primary or secondary residence. Rental properties would be subject to US federal income taxes annually.

4.       When they go to sell the home, the escrow company will withhold a percentage of the sales price for US federal taxes until the foreign buyer has filed and paid the US taxes in total. I can’t give you a specific percentage, because it depends on the sales price, if there has been a gain on the home, and what laws are in place at that time. Right now most escrow companies are withholding 10%.

And that's about it. There are a few countries whose citizens are not eligible to purchase homes in the States (usually terrorist related), but that is a very small number. And currently with the great rate of exchange against the US dollar and record breaking low prices on Las Vegas housing, it makes all the sense in the world for foreign buyers to take advantage of our real estate market.