Foreclosures in Las Vegas are actually on the decline, and Las Vegas is no longer number one in foreclosures nationwide. But that may be deceptive. A Nevada law that went into effect in October is the reason those foreclosures are down. But some in the industry say this is just slowing down the inevitable. We'll look to see what Las Vegans are doing now with their undervalued properties and ask if there are any silver linings.
John Restrepo, principal, Restrepo Consulting Group
Thomas Blanchard, broker and owner, REO Asset Services, First Realty Group
My name is Kim. I'm 43, have great credit and I bought my house three years ago. Now I need to relocate out of state-of all places California. I talked to the bank three times about helping me out, they didn't/couldn't/wouldn't. I met with a management company who were going to charge me less than my mortgage plus pay them to take care of it. Currently, I'm out of work on disability, so finding a job out of state while dealing with a work-related injury is frustrating. I met with an attorney who told me to walk away. The time spent on a short-sale and helping the bank find a seller is wasteful. I've stopped paying and am walking away. I've already given the bank over $38,000 in interest. How is that they can come back after me? I've never did anything so shameful, but so many people tell me not to feel bad, it's not my fault. Why can't they settle? They're not at a lose, but treat it as one. Kim –Nov 17, 2011 11:05:14 AM
I am assuming that you are talking about just letting your house go into the foreclosure process. As such the Bank has a specified time frame to file and go after a deficiency judgement. Most Banks have not been doing that since they are so busy working on the current load of foreclosures. Now if you do a short sale and the Bank forgives the difference you were short (Loan Amount-Sale Price) they can record a Deficiency Judgement, but with a good Realtor or Attorney you should be able to negotiate that out with the short sale. non the less since you had a debt forgiven the IRS looks at it as income and is a taxable event. You should talk to an Tax/Financial Professional regarding those ramifications.
Good LuckThomas Blanchard –Nov 17, 2011 11:19:43 AM
When does the new refinancing for upside down homeowners who are current on payments go into effect? I paid $540,000 and now worth about $250,000. Never missed or been late with payment.
DennisDennis Wills –Nov 17, 2011 10:32:56 AM
This is not for any that took loans prior to mid 2008. People who took loans after should hqve known of unsteady market. Constantly i hear my home is worth half. And now im gonna lose my home. What does it matter if ur home is triple in value or only worth a dollar. Unless u must sell for wn unplanned move. If u got an adj. Loan after mid 08 then thays ur.own fault. Before 08 i can understand the people getting jerked around before. My fixed loan has actually gone down due to propeety taxes. So if ur losing ur house and ur adj loan between 04 qnd 08 then i feel for u. Qnd ur loan should be looked at. After that period ur own fault. Ahain the value only matter for an unplanned move carson jones –Nov 17, 2011 11:04:36 AM
The program should either be in effect right now or forth coming. You can get free advice and assitance through the Consumer Credit Counceling Service at www.ccsnevada.org Hope this helps out.Thomas Blanchard –Nov 17, 2011 11:10:58 AM
Best advice to lower principle if your current on your loan. Buy a house at half the price and let your current house go. If your not current your screwed. Again, if your current with your loan you should qualify for a new loan, you should buy the house down the street for half the price. It's the only way to liwer you payments!!!!Doug –Nov 17, 2011 10:25:09 AM