Monthly Archives: June 2010

Lawsuit Could cost Mers Billions

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A Reno law firm recently filed suits against MERS, (Mortgage Electronic Registration Systems) in both Nevada and California.  The suits allege that MERS and dozens of lenders associated with MERS have defrauded the government of recording and filing fees.   Courts have repeatedly ruled against MERS , finding that it has no standing in the foreclosure proceedings because they have no particular interest in the outcome of any particular case.  (MERS does not benefit if the loan gets paid off.)  Consequently, they are involved, merely to facilitate the lenders in avoiding recording and filing fees.

MERS was originally created to assist the lenders with their record keeping but has evolved as the main entity pursuing foreclosures.  the majority of trust deeds show MERS as one of the beneficiaries of the mortgage.

This has previously been discussed here, here and here.

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Has the Reno Sparks Foreclosure Situation Begun to Level Off?

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There are some indications that we have hit the bottom in the Reno/Sparks real estate market.  Perhaps it’s only wishful thinking, but there are still signs.

First, Jason Hidalgo, at the RGJ notices that the number of foreclosures has dropped for May.  He suggests that the lenders are finally working through their backlog of foreclosures.

And Terry Leighton suggests in this report that the foreclosure seems to be easing.

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New Trend in Flipping: Maybe Not

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This Nevada Appeal article suggests that there is a new trend in house flipping.  The article suggests that the new trend is rehabbing.

I can tell you that rehabbing has going on for a long,  long time.  As anyone that has followed the distressed property market can tell you is that when a homeowner is in some sort of financial distress, the maintenance on the property is one of the first things to go.  An experienced investor can spot a distressed property while just driving down the street.

For example, in Northern Nevada, a dead lawn, or landscaping is a sure sign that the homeowner lacked the finances to pay for the water.  There are others but, for now, this will suffice.

Now, I will agree that some new players have entered the marketplace.  They may now have all the information to make wise decisions. and consequently may bid more than the house is worth.  This tends to drive the prices higher than the knowledgeable buyers wold be willing to go.  The banks are also tightening up in what they will accept to sell the property.

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Chinese Drywall: GSEs Plan Mortgage Forbearances

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Fannie Mae and Freddie Mac will institure a new policy in July to not include those houses built with Chinese drywall to impact the foreclosure process.

The drywall was used mainly in the southeast, i.e. Florida, Lousiana and Virginia and was imported folllowing hurricane Katrina. Nevada is not expected to be affected.

A CPSC-led task force studying the impact of the drywall said it is responsible for emitting a sulfur smell, corrodes metal pipes and makes some residents ill. The task force has further found that the only effective remediation of the drywall is complete removal and replacement of the drywall and the affected household components. That’s forcing homeowners to find alternative housing — at their own expense — while their homes are repaired.

“This relief is intended to help borrowers who need payment flexibility as they take steps to mitigate … problem drywall,” said Terry Edwards, executive vice president. “The issue potentially affects thousands of homeowners in a number of states, and we want to support those who are responsibly trying to honor their mortgage obligation in good faith while correcting the problem and protecting the health and safety of their families.”

So, will this affect the actual foreclosure prices?

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Welcome to the Reno Real Estate Guide

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Welcome to the Reno Real Estate Guide.  We are a group of real estate investors and are involved with buying and selling real estate properties in the Reno/Sparks area.  We will offer the most current properties that we have available at any time.  Our intention is to have properties available at below market prices

This blog is evolving from an effort that began at the ReReno.Wordpress.com.  ReReno will evolve to become a bit more political while this blog attempts to focus more on the real estate market in the Reno/Sparks area.

We will endeavor to keep the most current and relevant news posted at all times.

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