Category Archives: Reno Real Estate

Unemployed Borrowers Get Break from Fannie Mae

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New guidelines from Fannie Mae followed similar guidelines from Freddie Mac on forbearance for homeowners that are unemployed and facing foreclosure. The loan servicer can grant six months forbearance without the GSE’s approval.

If the borrower is still unemployed Fannie Mae can approve an additional six months forbearance. After that the lender and borrower must consider other options.

The borrower is expected to repay the lost payments over a longer period. But in reality, in many cases the forbearance would simply amount to one year free rent.

This follows a similar program last summer for FHA loans and loan modifications.

Read more: http://www.nytimes.com/2012/01/12/business/unemployed-mortgage-holders-get-payment-extension.html

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Mortgage Interest Rates at Record Low

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The rate on the 30-year fixed mortgage reached a new record low of 3.91 percent. This marks the third new low this year. The 15-year fixed mortgage rate, remained unchanged at a low of 3.21 percent.

The exceptionally low rates and the depressed prices have created a superb buying opportunity, but the opportunity is lost for many potential buyers because of the difficulty qualifying for new loans.

With so many homes underwater here in Reno and Sparks very few homeowners can qualify for a re-finance. Additionally, Nevada’s real unemployment further reduces the chances to re-finance.

Read more: http://www.businessweek.com/ap/financialnews/D9RPKO100.htm

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NAR says Over Counting was Minor

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The NAR ( National Association of Realtors) Has been fudging the data on the sales of esisting homes for at least the last four years. Just in case you didn’t make the connection, that’s at least since the Obama Immaculation.

The NAR is now revising their numbers downward, and by as much as 20%. Apparently the numbers didn’t match those of Corelogic. And now the NAR doesn’t want to be seen as untrustworthy, so, now they are revising their numbers downward. NAR numbers used to relied on as reliable and now they might be running scared.

The concern is that an over-count might mean that a much larger backlog of unsold homes still looms over the US economy. That could mean that another drop of as much as 20 % could loom over the US housing market.

But the NAR says they are working on a new method to re-evaluate the market.

I’m surely ready tojump in and trust them again. Aren’t you?

Read more: http://www.reuters.com/article/2011/02/22/us-usa-economy-housing-idUSTRE71L10U20110222

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Canadians Think Las Vegas is Good Investment

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Canadians must think Las Vegas is a good place to invest. Else, why would they be putting their own money there?
The reality is that Candadians are investing in Las Vegas, big time. Do they know something that we don’t? Or, are we so close to the problem that we can’t see the opportunity.

“Where in Canada can you currently buy a $50,000 property that you can turn around and rent for $1,000 a month?” says real estate broker Steve Martel of Martels Real Estate Inc. in Ottawa, who specializes in the U.S. realty market.

This may be an idea for investing – or or may also be an indication of opportunities here in Reno.

What do you think?

read more: http://www.calgaryherald.com/business/Invest+real+estate/5611525/story.html

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Would I buy a Belvedere Condominium?

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My posts on this blog about the Belvedere condominium project and developer Bijan Madjlessi generated more interest than any other so far. Readers have even contacted me asking what I thought about buying units in the project.

I must begin with this disclaimer because except for what I have read or learned in newspaper or other reports my direct knowledge of the Belvedere is almost nonexistent. I’ve never been in the Belvedere nor have I ever met any of the players that I am aware of. As I said the extent of my knowledge has come only from news articles or from comments on this or other blogs. Therefore I believe I am not qualified to recommend in any way either positive or negative about the benefits of purchasing a Belvedere condominium unit.

My concern with the Belvedere project is that I am not convinced that the legal difficulties are yet over. There are some other reasons that I do not like condominiums but I will save that for another time.

As we have learned from the Reno Gazette Journal, the Belvedere condominiums were purchased at a Washoe County tax foreclosure sale by David Lonich, the attorney for Madjlessi. It would appear to me that Lonich is nothing but the straw buyer for Madjlessi.

We learned that Madjlessi failed to pay his mortgages, failed to pay his vendors, and failed to pay property taxes, thus resulting in tax foreclosure.

We learned that Madjlessi had been arrested in California for insurance fraud. Then as information began to grow we learned that Madjlessi was involved in the failure of Sonoma Valley bank. We further learned that Madjlessi had been involved in at least three other failed developments in California in the Sonoma and Petaluma area.

I would be concerned that the Belvedere is still a target rich environment for attorneys and law suits. I can only imagine that some hungry attorney will see an opportunity in coming to aid of the vendors that lost so much by their supplying goods and services to the project.

I just can’t imagine that they will be happy seeing Madjlessi win at their expense.

So, no. I would not personally be comfortable buying a condominium in the Belvedere project.

I would welcome comments from anyone having a different opinion.

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The Continuing Belvedere Saga

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I have received a lot of visitors from the Reno Realty Blog because of the discussion on the Belvedere.

One thing I noticed is that the link to the RGJ article no longer work. After 30 days the RGJ places its articles in its archives. You can still find the article if you choose the correct term, and are willing to pay to read it.

I will attempt to address some of the comments at RRB:

Jo Amick says:
June 13, 2011 at 6:30 PM

I also think “Tax implications and vacancy rates alone could very well put your return on investment at 4 years + ” to agree with “Nomad”. Guess I got beat to the punch!

I believe that all “tax implications” were wiped out at the Washoe County tax sale.

Renter says:
August 16, 2011 at 1:58 PM
…
Back to the discussion on being an investment opportunities, what seems to kill the deal is the “mechanic’s liens number in the hundreds”. I believe there are over $80K of liens on each apartment there.
…

As I understand the law a tax foreclosure takes priority over all other debts and obligations except IRS liens. Therefore, the mechanics liens were also wiped out.

GreenNV says:
August 16, 2011 at 7:52 PM

OK, this is my understanding. In a foreclosure situation, all the junior lien holders have the right to bid to try to maintain their interests in the property. If they don’t and the Trutees Sale is completed, their claim on the property it expunged.

So for the Belvedere, short sale properties still have the mechanic’s liens in place and should be avoided. Properties that have gone TD should be free and clear of the mechanic’s liens. I think buying a unit from the bank is pretty safe legally (given the other risks), but there are NOT any of the foreclosed units on the market right now. That smells fishy to me, so there may be more to the story.

This would be correct if it were a Trustee foreclosure sale or short sale. The Belvedere properties were NOT short sales nor were they Trustee sales. These were tax deed sales, sold by Washoe County.

By using the tax foreclosure sale route the property no longer has any bank debt, mechanics liens, HOA liens.

The bank did not buy the properties. According to the RGJ, they were all bought by Madjlessi’s lawyer. Therefore, the bank is NOT the seller.

I welcome and invite your comments and especially your corrections to anything where I may have been in error.

Please feel free to Like this post.

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The Second Wild Fire in Two Days

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Last evening we experienced a large number of lightning caused fires. This photo showed the fire that was located above Damonte High School.

Smoke from lightning caused fire.

Wildfire and Rainbow

This afternoon produced another fire near the Toll Road area. In this video we can see the borate bomber dropping fire retardant.

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Home for Rent; Foreclosures Considered

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A month ago I posted: “Can You Rent a Home After Foreclosure?”  This post received a significant amount of viewers.

I want to add that in this current rental marketplace, especially here in Reno, any landlord who would not consider foreclosures, would close himself off from a large portion of the possible available tenants.

Anyhow, this is a cheap way of saying that we have a Virginia Foothills home for rent and we will consider foreclosures.

Leave a message if interested.

 

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Belvedere Developer and the Glassman

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Bijan Madjlessi is the real estate developer that was arrested because of dual insurance claims because of a fire at the Belvedere towers condo project.

It appears that he had a history of using and abusing people.  It seems that not paying his contractors and vendors was his standard practice.

One of these vendors was Chad Empey of Petaluma, CA and it appears that he is fighting back.  He has posted videos that explain in detail how Madjlessi ran his operation.  This video is only one of many describing Madjlessi, his operation, and the corrupt bankers that enabled this fraud.

http://youtu.be/zhMpSmAS5tA

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Are Reno Home Prices at the Bottom?

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Have the home prices finally hit the bottom?  The question arises on a regular basis and the answers seem to be as reliable as a weather report.  But remember, people have been predicting the bottom from as long ago as 2008 and we still don’t know for sure.

The Reno-Sparks Realtors are fairly  sure we are bouncing along the bottom.  But, notice that the prices have dropped in the last few months, even while the sales were significantly higher.

REReno recently questioned if Reno home prices had hit bottom yet.

Mike Shedlock said that the housing price bottom will not be this month, but that’s as certain as he gets.  He has gathered a lot of information with charts and graphs that compares other situations to where we are now.

We should be aware that although the economic situation is world wide, that each locality has its own market.  Reno was earlier and more severe that many parts of the nation.

We can always hope.

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