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Lisa Wetzel And Jim Valentine's Blog

By Lisa Wetzel & Jim Valentine | Agent in Gardnerville, NV
  • OMG! Ever Been Undermined By An Underwriter?

    Posted Under: Home Buying in Carson City, Home Selling in Carson City, Financing in Carson City  |  September 15, 2012 9:48 AM  |  213 views  |  No comments

    I'm nearly bald from pulling my own hair!

    What in the wide wide world of business is going on?  And ... Who died and made them boss?

    First we work our buns off finding a house and getting the customers into escrow, next we slug though the negotiations and get an escrow open, then we sweat the inspections and the appraisal!  Almost there ... closing in sight ... then ... out of left field ... here comes the underwriter!

    Yesterday, after days in underwriting, we finally got "conditional" approval.  We got Loan approval conditioned on the buyer's employer writing a letter stating that they don't anticipate having any reason to need to "lay off" the buyer in the future.  Let me get my crystal ball and take a look!

    Besides being a total waste of everyone's time and completely useless, a letter like this isn't worth the paper it's faxed on! 

    This brainiac decision was just shortly preceded by another underwriter who decided that they would approve a loan for buyers on a home being purchased "As Is" with the condition that a number of repairs be done prior to the close of escrow!  Do you understand "As Is" ?

    The real question is ... Why is this Happening?  I truly understand that they need to be careful but ... "Give Me  Break!"  Where does reality fit into the equation? 

    OMG! Ever Been Undermined By An Underwriter?

     
  • Critical Short Sale Timing in Northern Nevada

    Posted Under: Home Buying in Reno, Home Selling in Reno, Financing in Reno  |  August 12, 2012 1:44 PM  |  223 views  |  No comments

    Critical Short Sale Timing in Northern Nevada

    The world of Short Sales in Northern Nevada has gone from non-existent to common place in a few short years changing the real estate and banking industries along the way. There has been legislation mandating timely performance and tax breaks for some individuals, but it is still not a venture for the faint of heart.  It is important, however, to make a decision soon if you are thinking of selling your Northern Nevada home via a Short Sale. 

    Have you been applying, re-applying and re-re-applying for a loan modification?  Are you sure of what you will really get from a loan modification agreement?  The rumors of principal reductions from banks have been swirling for some time now, but we have not seen the systems implemented yet.  They may be coming, but can you risk waiting?  In most cases the loan mods being offered aren’t giving the borrowers much more than an extension of their misery with minor relief.  If you hold on past the first of the year and the current tax break for primary residence short sales expires you could find yourself very sorry that you didn’t take action now.

    Here is your dilemma.  If the current tax break for the debt relief realized by an owner occupied primary residence is not extended, and you sell short with a closing past the end of the year, you will have the amount of your shortfall charged to you as income by the Internal Revenue Service. For example, if you are $100,000 short, the IRS will add $100,000 to your income for the year.  That could move you up tax brackets and will certainly create a financial burden of the unexpected tax liability.

    If you wish to avoid that situation, consider the timing of a short sale.  It generally takes 60 to 90 days to get short sale approval.  After that you’ll need 30 to 45 days to go through the escrow process.  Of course it takes time to get the property under offer before all of this, i.e. - 30-60 days.  You can see that if you are going to close by the end of the year you are running out of time.

    Understand, the tax relief matter may be a pawn of the election efforts this year, but we won’t know what will happen while the political posturing transpires between now and the election in November.  If it takes that long to resolve the matter you won’t have enough time to get on the market, complete the short sale approval process and close an escrow.  You must act now to control your financial future.  See the current IRS ruling

    Don't be an ostrich about Northern Nevada short salesOur Advice:  If you can hang on you can take your chances on the tax law being extended and the market coming back in the near future.  There are three major assumptions in the previous sentence.  You have to be able to hang on, have the law extended, and have the market come back.  Is it worth the financial risk, stress and emotional toll that you will be living with?  Only you can make that decision.  If, however, you are looking to buy again in the near future, wish to maintain your security clearance or other job related qualifications, and don’t want the risk of protracted collection dealings with the IRS and its representatives you should seriously consider getting your home on the market with an experienced short sale Agent.

    You are the normal if you are upside down in your home.  Things are changing, but your situation is still unique to you andyou and your circumstances.  Don’t play ostrich – pay attention to your options.  Make a plan with your Agent and work it.

    When it comes to choosing professionals to assist you with your real estate needs ... Experience is Priceless! Lisa Wetzel and Jim Valentine, CDPE, SFR, RE/MAX Realty Affiliates, 775-781-5472 carsonvalleyland@hotmail.com, www.carsonvalleyland.com


    Here are a few of our blog posts ... please enjoy!

    Northern Nevada Real Estate Deals … Have You Missed Them?

    The Unsinkable Volunteer Spirit in Northern Nevada Equals A Continued Demand In Our Local Real Estate Market!

    The Weeds Keep Growing in Carson Valley, Nevada

     Back to School in Lyon County Nevada


    Lisa Wetzel and Jim Valentine are the authors of this blog.  Lisa, Jim and Jessie are experts in Carson Valley , Carson City and the tri-county area of Douglas County, Carson City and Lyon County. Call our team anytime at 775-781-5472 or 775-781-3704.  To Search for Homes go to: Carson Valley Listing Book or visit our website at www.CarsonValleyLand.com

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  • The Residential Real Estate Appraisal And Its Purpose

    Posted Under: Home Buying in Nevada, Financing in Nevada  |  November 17, 2011 8:00 PM  |  801 views  |  No comments

    The Residential Real Estate Appraisal And Its Purpose 


    The Residential Real Estate Appraisal and Its Purpose.  The residential real estate appraisal is a key component to many real estate transactions.  If you are getting a loan it is imperative that the home “appraise” or you might find your loan terms modified.  If it doesn’t “appraise” … demonstrate a fair market value at least as high the price of your offer … then you may find you will have to add money, or try to renegotiate the sales price with your Seller in order to close your loan and complete your purchase.

    The Residential Real Estate Appraisal And Its PurposeResidential Real Estate Appraisals are necessary to protect the interest of both the Buyer and their Lender.  A Buyer doesn’t want to pay too much.  Regardless of how much you understand the market, it is comforting to have the opinion of an experienced licensed appraiser to confirm that you are making a wise decision as you go forward with your purchase.  Lenders, on the other hand, must be assured that they have sufficient value to protect the investment they are making when giving you the loan to purchase the house.

    The residential real estate appraisal for a loan to purchase a home is a relatively simple process.  The appraiser looks carefully at the subject property, measures it himself to determine its correct size, and evaluates its overall condition relative to standards set by the appraising industry.  They then select and evaluate “comps”, comparable properties that have sold within a specific time parameter.  Comparisons are made as to amenities, condition, location, etc. and adjustments made.  The result is a Fair Market Value, what a willing Buyer and a willing Seller would agree to given enough time for reasonable marketing.  That is the appraisal for getting a new loan.

    There are other purposes for appraisals, however, and they can lead to an entirely different value result even with the same property and appraiser.  It is important to realize who hired the appraiser and why.  If it is for estate purposes then a higher, or lower, value would be in order depending on if you are considering inheritance taxes, or your adjusted cost basis and the
    subsequent tax consequences of a sale.

    Likewise, residential appraisals for purposes of setting value for a deficiency judgment can trend up or down depending on it you are the lender that foreclosed or the borrower that lost the home.  Value as of the date of the foreclosure must be presented to the court during the deficiency proceedings and, of course, each party has an opposing objective for value in such a situation.

    Theoretically, there is but one value, but in reality there is much latitude and subjectivity when anThere is much latitude and subjectivity when an appraiser pulls and evaluates comps and formulates value. appraiser pulls and evaluates comps and formulates value. The degree of latitude will vary from property to property – some are “cookie cutters” and there is little latitude while others are so unique that no two out of twenty appraisers could get the same number if they wanted to.

    Our Advice: It is important to understand that you can’t manipulate appraisals.  Appraisers have guidelines that they must work within or there would be no standards.  Without standards the system would fail.  It is equally important, however, to understand that an appraisal is an opinion of value, and opinions are subject to change and influence within reason.  The question becomes what is reasonable and what is a reason for the reason.  Whether the appraisal is for you, or for another party, be aware of that there could be latent subjectivity influencing the final value. Make sure the appraisal is accurate from your perspective and goals.

    The true value of a home is what it means to you and your family.  Don’t let someone else's opinion influence your buying or selling decision if it doesn’t work for you. 

     

    When it comes to choosing professionals to assist you with your real estate needs ... Experience is Priceless! Lisa Wetzel and Jim Valentine, CDPE, SFR, RE/MAX Realty Affiliates, 775-781-5472 carsonvalleyland@hotmail.com, www.carsonvalleyland.com



    Here are a few of our recent blog posts ... please enjoy!


    What am I Really Thankful for?


    The Unsinkable Volunteer Spirit in Northern Nevada Equals A Continued Demand In Our Local Real Estate Market!

    The Nevada Homestead Exemption Act

    Douglas Pop Warner Little Scholars Awards Three Scholarships to Graduating Seniors in Carson Valley

    You Really Don't Have to Be A Jerk! ... More Tales From The Trenches!

    Maximizing Your Price As a Home Seller In Today's Market!

    How To Be A Good Real Estate Buyer

    What is You "Investional" Fortitude?

    Lisa Wetzel and Jim Valentine are the authors of this blog.  Lisa, Jim and Jessie are experts in Carson Valley , Carson City and the tri-county area of Douglas County, Carson City and Lyon County. Call our team anytime at 775-781-5472 or 775-781-3704.  To Search for Homes go to: Carson Valley Listing Book or visit our website at www.CarsonValleyLand.com

  • Buying After A Short Sale in Northern Nevada

    Posted Under: Home Buying in Carson City, Financing in Carson City, Property Q&A in Carson City  |  September 25, 2011 10:47 AM  |  778 views  |  No comments

    Buying After A Short Sale in Northern Nevada 

    Buying After A Short Sale in Northern Nevada

    Short Sales occur for a variety of reasons in Northern Nevada.  Regardless of the causal circumstances, as theLisa Wetzel and Jim Valentine money in trustnevada short sales, nevada homes for sale, buyeing after a short sale reality of a Short Sale sets in most Sellers experience many emotions and sometimes fears.  Most are initially value and morally driven, ie.- "I was raised to pay my bills!"  Of course so were the many millions of other Sellers that have been forced to sell short due to the current economic circumstances.  After understanding that they are a victim of circumstances and "normal" today comes the next question, "What are the consequences if I do a Short Sale?" 

    There are numerous consequences, and it is important to understand that they are not forever.  There are ways to expedite financial recovery and home ownership.  Many of the historic negative consequences are currently mitigated.  The taxation on debt relief has been removed for primary homeowners meeting certain criteria until fall of 2012.  The "Social Stigma" of Short Sales is now Minimized due to their sheer volume, between 30% and 70% of the market depending on when and where you sample the market. 

    So what happens after you've sold short?  If the cause of your need to sell short is legitimate you can get a new loan within two years.  What is legitimate?  Your ability to make your payment was impacted by job loss, medical bills, divorce, etc., and not a strategic default.  So you can get a new loan in two years, but what do you do in the interim?  You can lease with an option to buy with the right Seller.  Set the terms so you can get a new loan when it is time to exercise the option. 

    With home prices incredibly low, many Short Sale sellers would rather buy now than wait two years.  This can be accomplished in certain circumstances.  If you have a 401(k) account you may have the means to buy now.  You can take your funds and put 50% down on a home presently devalued.  That would put you in a great position to secure owner financing, or a private loan.  If you are in a position to do this, be sure your credit is otherwise good.  You can ask a lender to prequalify you for your eventual refinancing of your interim acquisition loan. 

    Our Advice: This isn't for everyone, but if circumstances warrant it, you can buy now and enjoy the benefit of the very low home prices.  Other benefits - you won't have to move in to a rental and then again in two years; you will enjoy home ownership benefits, i.e.- tax deductions and very likely substantial appreciation; you can make home improvements to enhance your living habitat.  There can be tax benefits, and potentially a better rate of return on your investment.  Regardless of the financial return, there will undoubtedly be a great emotional return on your investment.  Be careful reinvesting your retirement funds - look at all aspects and consequences of this type of investment. 

    Whether you are in a position to use 401(k), or a friendly family loan for a down payment, there are ways to buy now.  If you can't buy right now, understand that you will be a Buyer sooner than you think so plan your future.  Watch the market, build your credit, reduce your overall debt, and understand that in a few years this will be a distant memory.  Your world has not ended, you are just beginning a new experience.  

    When it comes to choosing professionals to assist you with your real estate needs ... Experience is Priceless!  Lisa Wetzel & Jim Valentine, CDPE, SFR, RE/MAX Realty Affiliates, 775-781-5472.  carsonvalleyland@hotmail.com, www.carsonvalleyland.com

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    Other Recent Blog Posts About Real Estate In Northern Nevada ...

    Vacant Lot Myths ... Northern Nevada Land

    You Really Don't Have to Be A Jerk! ...  More Tales From The Trenches!

    1576 East Valley Road, Gardnerville, Nevada ... The Crown Jewel of East Carson Valley

    Maximizing Your Price As a Home Seller In Today's Market!

    Eagle Ridge Subdivision at Genoa, Nevada - Sierra Foothill Lots ... Unbelievable Prices!

    Lisa Wetzel and Jim Valentine are the authors of this blog.  Lisa, Jim  and Jessie are experts in Carson Valley , Carson City and the tri-county area of Douglas County , Carson City and Lyon County.  Call our team anytime at 775-781-5472 or 775-781-3704.  To Search for Homes go to: Carson Valley Listing Book  or visit our website at www.CarsonValleyLand.net or  www.CarsonValleyLand.com

 
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