Category Archives: Reno Short Sales

Is the Reno Real Estate Market Finally Looking Up?

I’ve seen rosy predictions before. I don’t know if real estate agents could do anything else. After all, their livlihood depends on it. Else, how could they sell something they thought to be a loser. And don’t assume by this that I think the agents fib about their marketplace. I’m not suggesting that at all.

So, I refer you to this article in NNBW by Kevin Annis about the Reno-area office market and I read it to mean that he thinks things are looking up.

Northern Nevada businesses will realize the worst is behind us. I recognize that this is not a measurable prediction; however, it certainly is worth recognizing. Companies that have weathered the economic storm have made it past the worst of it and will begin reinvesting in local economy.

For me, maybe – and maybe not.

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.

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Peter Padilla and Leslie Henderson on Short Sales

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Here’s a podcast with peter Padilla and Leslie Henderson discussing short sales.

Henderson & Padilla: Ease The Pain of Short Sales & zero down on the VA Mortgage! May 15, 2011 by NevadaRealEstateRadio

Zillow: U.S. Housing Value Dropped 1.7 Trillion in 2010

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Zillow estimates that US housing values experienced substantial gains earlier in the year, they have dropped approximately $1.7 trillion this year. The drop is 63% greater that the $1.0 trillion drop in 2009. Zillow further estimates that US housing has lost more that $9 trillion since the peak in 2006. Some of the gains early in the year were due to the tax credit and are no longer available.

Even though this is the nationwide averages, some areas have fared better, or worse than other areas. For example, Boston and San Diego have seen a price increase this year. I do not have the statistics for Reno or Nevada at this time. Also different market segments tend to move at different times.

The Reno economy has been extremely hard hit. Jobs are scarce. No matter what the government would want you to believe. Foreclosures and short sales are pervasive. Many over-encumbered homeowners are simply walking away. The homeowners that would normally want to upgrade have little or no equity remaining and can’t move.

Zillow thinks that we will finally hit bottom sometime in 2011 and that it may take 3 to 5 years before we see normal appreciation again.

Read the rest here.

About: Navigating the Short Sale Quagmire

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Ron Ballard at the CALIFORNIA SHORT SALE LAWYER blog posted a great article about navigating the short sale quagmire. Even though it deals with an update from the California DRE, I believe the concepts equally apply to real estate problems in Reno and throughout Nevada.

Read it here.