By Hubble Smith
LAS VEGAS REVIEW-JOURNAL
Posted: May 25, 2011 | 2:01 a.m.
New homes accounted for just 7 percent of total housing sales in April, a radical departure from past years when they were about 40 percent of the Las Vegas market, a local housing analyst said Tuesday.
Home Builders Research reported 258 new-home sales during the month, down from 293 the previous month and down from 471 in April 2010. For the first four months of the year, new-home sales declined 33 percent, to 1,020.
The new-home industry was once a huge contributor to the Las Vegas economy with as many as 30,829 closings in 2005. That number fell to 15,584 just two years later and then to 4,761 last year.
The reduction in new-home market share is an "unbelievable alteration" and sums up how the Las Vegas housing market has changed, Home Builders Research President Dennis Smith said.
"It's hard to compare to the way things used to be," he said. "This is what the market is resetting into, something it's never been before. I'm not saying it's bad. It's different."
Adapting to the changing market, homebuilders laid off most of their staffs and cut operations to the bone, Smith said. He counted 323 homebuilding permits in April, for a total of 1,130 for the year, down 45 percent from a year ago.
It's not a fair comparison because last year's numbers reflected increased demand from the government's homebuyer tax credit, he said.
"The numbers are sobering," the analyst said. "Closings are one thing, but I watch permits. I'd be really surprised if we don't see an increase (in permits) in the coming months."
Customer traffic at new-home subdivisions has slowly increased and net sales per subdivision have climbed to about 0.4 a week, about double from the beginning of the year, Smith said.
D.R. Horton pulled the most permits in April (182) followed by KB Home (157) and Lennar (133).
The median price of a new home in Las Vegas dropped 7.2 percent from a year ago, to $188,450 in April.
The resale segment continued to chug along, with 3,849 recorded closings in April, largely boosted by investor purchases. For the year, existing home sales increased 3.8 percent, to 14,375.
Median resale price was $112,000, a loss of $16,000, or 12.5 percent, from a year ago. Smith noted that 19 homes closed escrow for $1 million or more .
Smith said he's seeing signs that Las Vegas may be emerging from the recession, such as packed restaurants and an uptick in discretionary spending.
"There's some good news around the country and hopefully it'll filter down to us," Smith said.
Contact reporter Hubble Smith at hsmith@reviewjournal.com or 702-383-0491.
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Tuesday, May 24, 2011
Rent here? Who can afford it?
By Jennifer Robison
LAS VEGAS REVIEW-JOURNAL
Posted: May 12, 2011 | 12:18 a.m.
Updated: May 12, 2011 | 8:53 a.m.
Las Vegas housing, unaffordable?
It's been a while since we've heard that one.
But an affordability problem is exactly what Las Vegas has, according to a new study. The National Low Income Housing Coalition's "Out of Reach 2011" report says the city's average apartment rent outstrips the average wage earner's income by a significant amount.
Local observers quibbled with the coalition's figures, saying their numbers show a substantially better balance between rents and wages.
Regardless of whose statistics you follow, one thing's for sure: A multitude of demographic and economic trends will shape the Las Vegas apartment market -- and the rents people pay -- in coming years.
To understand the rental market's dynamics, start with those disputed figures from the National Low Income Housing Coalition. Using data from the U.S. Department of Housing and Urban Development, the coalition, an advocacy group that says it wants to guarantee decent, affordable homes for low earners, pegged the average monthly rent for a two-bedroom apartment in Las Vegas at $1,067. That means a local earning the city's average hourly wage of $14.52 would need to work 57 hours a week to swing the rent, utilities and other essentials. A renter earning the state's minimum wage of $8.25 would have to work 99 hours a week to afford the typical two-bedroom rent.
Danilo Pelletiere, research director and chief economist for the coalition, said the disparity between rents and incomes matters because pricey apartments mean unstable communities, as renters move from complex to complex looking for more affordable places. Expensive housing also drains discretionary income.
"We need to focus on these issues to keep neighborhoods alive, keep stores in business and keep that vibrancy that communities need to survive," Pelletiere said.
Housing and Urban Development officials said they obtain their rent information from a combination of sources, including 2008 Census data, 2009 phone surveys and adjustments for inflation.
But local experts said the report's average rents seem high.
Brian Gordon, a principal in Las Vegas consulting and research firm Applied Analysis, said his company's first-quarter numbers show an average local two-bedroom rental rate of $668 to $825 a month, depending on the number of bathrooms. The market's average overall monthly rent for apartments of all sizes was $761 in the period. Applied Analysis gets its statistics through landlord surveys, conducted most recently in March.
Spencer Ballif, a senior vice president with the Las Vegas office of commercial real estate brokerage CB Richard Ellis, came up with a similar result. Ballif's numbers, which also come from landlord surveys, show an average monthly rent of $867 for two-bedroom apartments in Class A communities, which consist of newer properties with more features and upgrades. A typical two-bedroom Class B unit came in at $717 a month, while two-bedroom Class C units averaged $643 a month.
What's more, average rents are down substantially. Gordon's numbers show the average asking rent on a two-bedroom, two-bath apartment in Las Vegas falling 14.5 percent in the last three years, from $959 in the first quarter of 2008 to $825 in the same period of 2011. Ballif said the average monthly lease rate for all types of units fell from $932 in the fourth quarter of 2007 to $780 in the first quarter of 2011, a 16.3 percent drop.
And that's before you count the concessions landlords offer to lure residents. A standard concession is one month's free rent -- a sweet deal that didn't exist during the market's heyday three to four years ago. Factor in those giveaways, and rents have probably dropped in the 20 percent-plus range, Ballif said.
In fact, rents continue to drop for Camden Property Trust, the Texas-based owner of 29 Las Vegas Valley apartment complexes. Camden's monthly rents range from $399 to $1,300, are still trending negative and dropped 7 percent in 2010, said Myra Rega, the company's regional manager.
"We have a few communities with rents that have turned upward, but for the majority of our communities here, we haven't hit bottom yet. We're still seeing year-over-year decreases," Rega said.
Those drops could stabilize and reverse soon, though.
For starters, apartment occupancies are increasing. Local rental communities posted an occupancy rate of 92 percent in the first quarter, up from 90.1 percent in the fourth quarter of 2009, Gordon said, and the number of concessions is dropping.
Credit the rise in occupancy to the jump in home foreclosures. As homeowners surrender their properties, they move into rental communities, Pelletiere said. The burst housing bubble has increased the number of single-family homes for rent by underwater families looking to cover mortgages on homes they can't sell. But those rental homes haven't proven major competition for apartments because homeowners borrowed at the market's apex, so they have to charge significant rents to pay the mortgage.
Ballif said it's difficult to determine how many distressed single-family homes might end up in the city's rental pool.
What is clear: Few new apartment communities are planned or under construction, and that could constrain apartment supply in coming years. Las Vegas averaged 5,100 new apartment units annually during its prerecession boom; expect 1,200 units a year in the future, Ballif said.
That flat supply could run head-on into a growing demand for rental units, depending on the economy and demographics.
Incomes are stabilizing as average hours worked per week begin to bounce back from recession-era lows, Gordon said. There's also stabilization in the job market. Job creation jumped in March and unemployment fell to 13.3 percent, down from 14.9 percent in December.
Those trends will likely mean more renters in coming years, Pelletiere said, as roommates and extended families who doubled up to survive hard times can afford to strike back out on their own.
Rega said Camden officials expect occupancies and rents to stay steady through 2011, and move upward in 2012.
Marketwide, annual rent increases of 2 percent to 3 percent could return beginning in 2012 if local employers create more jobs, Ballif added.
Contact reporter Jennifer Robison at jrobison@reviewjournal.com or 702-380-4512
.
LAS VEGAS REVIEW-JOURNAL
Posted: May 12, 2011 | 12:18 a.m.
Updated: May 12, 2011 | 8:53 a.m.
Las Vegas housing, unaffordable?
It's been a while since we've heard that one.
But an affordability problem is exactly what Las Vegas has, according to a new study. The National Low Income Housing Coalition's "Out of Reach 2011" report says the city's average apartment rent outstrips the average wage earner's income by a significant amount.
Local observers quibbled with the coalition's figures, saying their numbers show a substantially better balance between rents and wages.
Regardless of whose statistics you follow, one thing's for sure: A multitude of demographic and economic trends will shape the Las Vegas apartment market -- and the rents people pay -- in coming years.
To understand the rental market's dynamics, start with those disputed figures from the National Low Income Housing Coalition. Using data from the U.S. Department of Housing and Urban Development, the coalition, an advocacy group that says it wants to guarantee decent, affordable homes for low earners, pegged the average monthly rent for a two-bedroom apartment in Las Vegas at $1,067. That means a local earning the city's average hourly wage of $14.52 would need to work 57 hours a week to swing the rent, utilities and other essentials. A renter earning the state's minimum wage of $8.25 would have to work 99 hours a week to afford the typical two-bedroom rent.
Danilo Pelletiere, research director and chief economist for the coalition, said the disparity between rents and incomes matters because pricey apartments mean unstable communities, as renters move from complex to complex looking for more affordable places. Expensive housing also drains discretionary income.
"We need to focus on these issues to keep neighborhoods alive, keep stores in business and keep that vibrancy that communities need to survive," Pelletiere said.
Housing and Urban Development officials said they obtain their rent information from a combination of sources, including 2008 Census data, 2009 phone surveys and adjustments for inflation.
But local experts said the report's average rents seem high.
Brian Gordon, a principal in Las Vegas consulting and research firm Applied Analysis, said his company's first-quarter numbers show an average local two-bedroom rental rate of $668 to $825 a month, depending on the number of bathrooms. The market's average overall monthly rent for apartments of all sizes was $761 in the period. Applied Analysis gets its statistics through landlord surveys, conducted most recently in March.
Spencer Ballif, a senior vice president with the Las Vegas office of commercial real estate brokerage CB Richard Ellis, came up with a similar result. Ballif's numbers, which also come from landlord surveys, show an average monthly rent of $867 for two-bedroom apartments in Class A communities, which consist of newer properties with more features and upgrades. A typical two-bedroom Class B unit came in at $717 a month, while two-bedroom Class C units averaged $643 a month.
What's more, average rents are down substantially. Gordon's numbers show the average asking rent on a two-bedroom, two-bath apartment in Las Vegas falling 14.5 percent in the last three years, from $959 in the first quarter of 2008 to $825 in the same period of 2011. Ballif said the average monthly lease rate for all types of units fell from $932 in the fourth quarter of 2007 to $780 in the first quarter of 2011, a 16.3 percent drop.
And that's before you count the concessions landlords offer to lure residents. A standard concession is one month's free rent -- a sweet deal that didn't exist during the market's heyday three to four years ago. Factor in those giveaways, and rents have probably dropped in the 20 percent-plus range, Ballif said.
In fact, rents continue to drop for Camden Property Trust, the Texas-based owner of 29 Las Vegas Valley apartment complexes. Camden's monthly rents range from $399 to $1,300, are still trending negative and dropped 7 percent in 2010, said Myra Rega, the company's regional manager.
"We have a few communities with rents that have turned upward, but for the majority of our communities here, we haven't hit bottom yet. We're still seeing year-over-year decreases," Rega said.
Those drops could stabilize and reverse soon, though.
For starters, apartment occupancies are increasing. Local rental communities posted an occupancy rate of 92 percent in the first quarter, up from 90.1 percent in the fourth quarter of 2009, Gordon said, and the number of concessions is dropping.
Credit the rise in occupancy to the jump in home foreclosures. As homeowners surrender their properties, they move into rental communities, Pelletiere said. The burst housing bubble has increased the number of single-family homes for rent by underwater families looking to cover mortgages on homes they can't sell. But those rental homes haven't proven major competition for apartments because homeowners borrowed at the market's apex, so they have to charge significant rents to pay the mortgage.
Ballif said it's difficult to determine how many distressed single-family homes might end up in the city's rental pool.
What is clear: Few new apartment communities are planned or under construction, and that could constrain apartment supply in coming years. Las Vegas averaged 5,100 new apartment units annually during its prerecession boom; expect 1,200 units a year in the future, Ballif said.
That flat supply could run head-on into a growing demand for rental units, depending on the economy and demographics.
Incomes are stabilizing as average hours worked per week begin to bounce back from recession-era lows, Gordon said. There's also stabilization in the job market. Job creation jumped in March and unemployment fell to 13.3 percent, down from 14.9 percent in December.
Those trends will likely mean more renters in coming years, Pelletiere said, as roommates and extended families who doubled up to survive hard times can afford to strike back out on their own.
Rega said Camden officials expect occupancies and rents to stay steady through 2011, and move upward in 2012.
Marketwide, annual rent increases of 2 percent to 3 percent could return beginning in 2012 if local employers create more jobs, Ballif added.
Contact reporter Jennifer Robison at jrobison@reviewjournal.com or 702-380-4512
.
Nevada bucks trend in home repos
By ALEX VEIGA
THE ASSOCIATED PRESS
Posted: May 12, 2011 | 12:18 a.m.
LOS ANGELES -- Nevada again had the highest foreclosure rate in the nation, with one in every 97 households receiving a foreclosure notice in April, according to a report being released today.
The Silver State also bucked the overall national trend, as bank repossessions jumped 23 percent from March and climbed 12 percent from April of last year, RealtyTrac said in its report.
Lenders may have elected to pick up the pace of foreclosures in Nevada to take advantage of brisk foreclosure sales in Las Vegas. In March, sales of previously occupied homes in Las Vegas hit a five-year high, with distressed properties accounting for 69 percent of sales, according to DataQuick.
However, the Greater Las Vegas Association of Realtors reported that real-estate owned, or bank-owned, homes accounted for roughly 47 percent of sales, while short sales, or homes sold for less than the mortgage owed, accounted for 23 percent of sales.
Across the nation, fewer Americans had their homes repossessed by banks or were put on notice for being behind on their mortgage payments in April compared to a year ago.
That would ordinarily suggest improving fortunes for U.S. homeowners, but the decline had less to do with any turnaround in the housing market than with foreclosure processing delays that appear to be getting worse. That is threatening to drag out a housing recovery, foreclosure listing firm RealtyTrac Inc. said in its report.
It's taking longer for lenders to move against homeowners who have stopped paying their mortgage and to take back homes already in some stage of the foreclosure process. In states like New York, for example, it now takes an average of more than two years for a home to go from the initial stage of foreclosure to being repossessed by a bank, the firm said.
Those delays, partly due to banks working through foreclosure documentation problems that came to light last fall, means it could take many more years for lenders to deal with a backlog of seriously delinquent properties, which numbers up to 3.7 million, by some estimates.
"It's going to take between three to four years just to get those loans into foreclosure at our current pace," said Rick Sharga, a senior vice president at RealtyTrac. "And that doesn't spell good news for the housing market."
Nevada has led the nation in foreclosures for several years since the housing market collapsed. Across the U.S., banks repossessed 69,532 homes last month, down 5 percent from March and down 25 percent compared with April of last year, according to RealtyTrac, which tracks warnings sent to homeowners throughout the foreclosure process.
The number of properties receiving an initial notice of default fell to 63,422, down 14 percent from March and down 39 percent from April 2010, RealtyTrac reported.
Homes scheduled for auction for the first time also declined in April, falling to 86,304. That's down 7 percent from March and 37 percent below April of last year.
Las Vegas-based SalesTraq showed 2,099 bank repossessions in March, compared with 943 in February and 1,520 in January. They're up 68 percent from the same month a year ago.
Banks sold off 2,131 homes in March, leaving the bank-owned inventory in Las Vegas at 11,684, according to SalesTraq.
A weak housing market, sliding home prices and pressure on lenders to give troubled homeowners more time to work out new payment arrangements or loan terms have all contributed to the longer time frame for foreclosures.
Many banks also have taken steps to revisit thousands of foreclosure cases since last fall, delaying the processing of new foreclosures. The logjam has been compounded by court delays in states like Florida, New York and New Jersey, where foreclosures must be approved by a judge.
In the first three months of this year, it took an average of 400 days for a U.S. home to go from receiving an initial notice of default to being foreclosed on, RealtyTrac said.
That's up from an average of 340 days in the same period last year and more than double the 151-day average in the first quarter of 2007.
The delays are even lengthier at the state level. In New York and New Jersey, the foreclosure process took more than 900 days, on average, to run its course in the first quarter -- more than three times the average length of time in the first quarter of 2007 for both states.
In Florida, one of the states hardest hit by the foreclosure crisis, the process took an average of 619 days in the first quarter, up from 470 days a year earlier. In the first quarter of 2007, it took an average of 169 days for the process to play out, RealtyTrac said.
Barring a pickup in the pace of foreclosures, it is likely fewer homes will be repossessed this year than in 2010, when lenders took back more than a million, Sharga said.
Despite the drop in foreclosure activity last month, several states continue to have outsized foreclosure rates.
Review-Journal writer Hubble Smith contributed to this report
THE ASSOCIATED PRESS
Posted: May 12, 2011 | 12:18 a.m.
LOS ANGELES -- Nevada again had the highest foreclosure rate in the nation, with one in every 97 households receiving a foreclosure notice in April, according to a report being released today.
The Silver State also bucked the overall national trend, as bank repossessions jumped 23 percent from March and climbed 12 percent from April of last year, RealtyTrac said in its report.
Lenders may have elected to pick up the pace of foreclosures in Nevada to take advantage of brisk foreclosure sales in Las Vegas. In March, sales of previously occupied homes in Las Vegas hit a five-year high, with distressed properties accounting for 69 percent of sales, according to DataQuick.
However, the Greater Las Vegas Association of Realtors reported that real-estate owned, or bank-owned, homes accounted for roughly 47 percent of sales, while short sales, or homes sold for less than the mortgage owed, accounted for 23 percent of sales.
Across the nation, fewer Americans had their homes repossessed by banks or were put on notice for being behind on their mortgage payments in April compared to a year ago.
That would ordinarily suggest improving fortunes for U.S. homeowners, but the decline had less to do with any turnaround in the housing market than with foreclosure processing delays that appear to be getting worse. That is threatening to drag out a housing recovery, foreclosure listing firm RealtyTrac Inc. said in its report.
It's taking longer for lenders to move against homeowners who have stopped paying their mortgage and to take back homes already in some stage of the foreclosure process. In states like New York, for example, it now takes an average of more than two years for a home to go from the initial stage of foreclosure to being repossessed by a bank, the firm said.
Those delays, partly due to banks working through foreclosure documentation problems that came to light last fall, means it could take many more years for lenders to deal with a backlog of seriously delinquent properties, which numbers up to 3.7 million, by some estimates.
"It's going to take between three to four years just to get those loans into foreclosure at our current pace," said Rick Sharga, a senior vice president at RealtyTrac. "And that doesn't spell good news for the housing market."
Nevada has led the nation in foreclosures for several years since the housing market collapsed. Across the U.S., banks repossessed 69,532 homes last month, down 5 percent from March and down 25 percent compared with April of last year, according to RealtyTrac, which tracks warnings sent to homeowners throughout the foreclosure process.
The number of properties receiving an initial notice of default fell to 63,422, down 14 percent from March and down 39 percent from April 2010, RealtyTrac reported.
Homes scheduled for auction for the first time also declined in April, falling to 86,304. That's down 7 percent from March and 37 percent below April of last year.
Las Vegas-based SalesTraq showed 2,099 bank repossessions in March, compared with 943 in February and 1,520 in January. They're up 68 percent from the same month a year ago.
Banks sold off 2,131 homes in March, leaving the bank-owned inventory in Las Vegas at 11,684, according to SalesTraq.
A weak housing market, sliding home prices and pressure on lenders to give troubled homeowners more time to work out new payment arrangements or loan terms have all contributed to the longer time frame for foreclosures.
Many banks also have taken steps to revisit thousands of foreclosure cases since last fall, delaying the processing of new foreclosures. The logjam has been compounded by court delays in states like Florida, New York and New Jersey, where foreclosures must be approved by a judge.
In the first three months of this year, it took an average of 400 days for a U.S. home to go from receiving an initial notice of default to being foreclosed on, RealtyTrac said.
That's up from an average of 340 days in the same period last year and more than double the 151-day average in the first quarter of 2007.
The delays are even lengthier at the state level. In New York and New Jersey, the foreclosure process took more than 900 days, on average, to run its course in the first quarter -- more than three times the average length of time in the first quarter of 2007 for both states.
In Florida, one of the states hardest hit by the foreclosure crisis, the process took an average of 619 days in the first quarter, up from 470 days a year earlier. In the first quarter of 2007, it took an average of 169 days for the process to play out, RealtyTrac said.
Barring a pickup in the pace of foreclosures, it is likely fewer homes will be repossessed this year than in 2010, when lenders took back more than a million, Sharga said.
Despite the drop in foreclosure activity last month, several states continue to have outsized foreclosure rates.
Review-Journal writer Hubble Smith contributed to this report
When troops get orders to move, some risk losing houses
By Keith Rogers
LAS VEGAS REVIEW-JOURNAL
Posted: May 22, 2011 | 7:37 a.m.
Updated: May 22, 2011 | 2:18 p.m.
These soldiers and airmen have dropped bombs or have seen them explode in Iraq and Afghanistan, so they know firsthand the stress of fighting the nation's wars.
Now they are battling a different kind of stress at home in the Las Vegas Valley -- the chronic stress that weighs on them from being at ground zero of the mortgage crisis.
When they get orders to move somewhere else, they have no choice but to go. In many cases, they face six-figure losses on their homes through short sales or foreclosure.
They also risk losing their security clearances, which could prevent them from flying warplanes and leading troops after they arrive at their new assignments.
"This has been more stressful than my deployment," said Lt. Col. Eric Wishart, who is trying to sell a home worth 60 percent less than he paid for it. "And going to Afghanistan is no picnic."
Wishart is not alone.
More than a thousand airmen at Nellis Air Force Base have been trapped in the mortgage crisis and are unable to refinance, according to a survey by Rep. Joe Heck, R-Nev.
The survey found 740 airmen upside down on their mortgages don't qualify for the Pentagon aid program, another 263 can't sell their homes at a break-even price and some are renting them at a monthly loss.
Of the base's 8,932 personnel, 32 are in foreclosure and 98 have completed short sales or are in the process of completing one.
After seeing this snapshot of what is happening at Nellis, Heck proposed an amendment to a defense bill to shed more light on the problem.
While the bill doesn't provide funding for an assistance program, it would study the problem nationwide across all branches of the services.
"Service members become distracted by personal and financial issues, rather than focusing on their mission," Heck said earlier this month , noting that a soldier's ruined credit makes it difficult for them to maintain their security clearances.
ONE SOLDIER'S STORY
Wishart, a full-time Nevada National Guard soldier and military science professor who chairs the Army ROTC program at the University of Nevada, Las Vegas, is trying to pay off a 1,550-square-foot house in northwest Las Vegas, where he lives with his wife and two daughters.
They bought the house in 2006 for $327,000, but it is only worth $132,000 based upon its current appraisal and a cash offer in a short sale.
His permanent-change-of-station, or PCS, orders will soon send him to Carson City to work as a battalion commander at Guard headquarters.
He might have been able to avoid a loss through the Defense Department's Homeowners' Assistance Program, but he isn't eligible even though it was expanded in the 2009 economic stimulus bill.
The assistance program through the Army Corps of Engineers is limited to personnel who bought their homes before July 1, 2006, but who sold them because of permanent relocations between Feb. 1, 2006, and Sept. 30.
"What I'm asking for is some protection from deficiency judgments," said Wishart, who served as a combat adviser in Afghanistan during a year's tour that ended in 2009.
"Thank God, no one on our team was killed or injured, but we saw our share of rockets and IEDs," he said, referring to improvised explosive devices, or roadside bombs.
'UPSIDE DOWN A BUNCH'
Three pilots who fly fighter jets at Nellis Air Force Base told similar tales after being reassigned out of state.
Lt. Col. Mike Ballek, an F-15 pilot, said he, too, has been enduring financial stress since he learned in October that he would be moving his wife and son to Washington, D.C., this summer.
They bought a new two-story home in June 2007 in a gated North Las Vegas community. The value of the 2,800-square-foot home is "upside down a bunch, over $200,000," he said Friday.
Like Wishart, he isn't eligible for assistance under the Defense Department program and is losing money every month.
"What people would like to see is maybe expand the window or get rid of the eligibility date. Let people apply and let the folks who run the program make the decision on who's deserving," said Ballek, who, like the other pilots, spoke as a private citizen and not on behalf of the armed forces.
Stress from the mortgage crisis centers on that nagging thought "that potentially all your life savings could be gone. There are a lot of unknowns," Ballek said.
"It's a different kind of stress but still stressful," he said. "In combat your primary concern is not getting shot or making sure that you bomb the right target not the wrong target. This is a different kind of stress, the kind that weighs on you over time ... knowing that you have to figure out how to get out from under the house and what's going to happen in terms of security clearances."
'DO THE BEST FOR MY FAMILY'
Marine Corps Lt. Col. David Berke flies F-22 Raptor jets out of Nellis under a pilot exchange program with the Air Force. He moved here in 2008 and bought a home in North Las Vegas with his wife to start their family. They now have a 2-year-old daughter and a newborn.
"I don't have a waterfall and a helicopter pad, just a reasonably priced home in a reasonable neighborhood. The goal was not being greedy or lavish but to do the best for my family."
With orders to relocate next month to Eglin Air Force Base, Fla., to fly the new F-35 joint strike fighter jets, Berke said he will have to find a place to rent there while continuing to make payments on his North Las Vegas home that he bought for about $250,000 but is now worth approximately $120,000.
He expects to lose between $125,000 and $150,000 on his investment, which has brought on "a significant amount of personal stress."
"It undermines the barrier between your professional life and personal life," said Berke, who has been a Marine pilot for 17 years with multiple deployments to Iraq and Afghanistan.
Berke said when he bought the house in 2008 he thought the home market had hit bottom and the market would return. Now he thinks "there's a distinct possibility that home values will decrease in the future."
LOSING SECURITY CLEARANCE
Air Force Lt. Col. Zac Wood closed on his North Las Vegas house in 2009 thinking the market would recover in the three or four years he would be stationed at Nellis flying F-16s.
"I really never thought I'd find myself in this situation," Wood said.
He and his wife have three children.
"We have it on the market and we're trying to hold on to it and sell for at least what we owe the bank."
While he is not as upside down on his North Las Vegas home as some of the other pilots, his situation is compounded by having his savings tied up in a previous residence in Newport News, Va., that he must rent out at a loss.
He also is worried about losing his security clearance after he moves to his new assignment in Fort Drum, N.Y., his 11th move in 17 years.
"Up until last year my understanding was you could let security know you might have to file bankruptcy and go into foreclosure, and they would kind of understand that. But in the last six months to nine months or so, they've come about and said they're not going to be quite so understanding," he said.
"So I could lose my security clearance. And if I lose my security clearance, I'm kind of useless to the Air Force. Pretty much every job that I could do requires a security clearance."
Wood, an Iraq War veteran, said he loses sleep trying to grapple with the mortgage crisis.
"It's a horribly stressful situation," he said, adding that he tries to find peace of mind through running. "I ran six miles today to get rid of it."
In interviews last week, the three pilots emphasized that they need to protect the integrity of their security clearances. They said they also risk depleting their savings to stay afloat while they try to sell their homes at a loss, or rent them out with a negative cash flow. Additionally, they will be strapped to buy or rent at their new locations that, like Nellis, have either no or limited on-base housing.
THROUGH AN AGENT'S EYES
Real estate agent Aldo Martinez, who retired from the military in 2005, is handling the Wishart family's short sale and has worked with many active duty soldiers and airmen in the Las Vegas area.
He said Congress needs legislation to help what he called "the most underpaid profession in the United States for the amount of sacrifices."
He said even USAA, a lender that "is supposed to be a service member organization," has been no help in resolving the Wisharts' case. He charged the USAA with intentionally interfering with a contract to sell the property.
"It's like lose-lose instead of creating a win-win," Martinez said, describing "the humiliation a person goes through losing their home."
Nicole Alley, a corporate spokeswoman for USAA in San Antonio, said Friday that she didn't have all the details to comment on the Wisharts' case.
Nevertheless, she said, "We're dedicated to those serving the nation and we are sensitive to members having financial hardships in today's economy. That's why USAA goes above the Service Members Relief Act. We go above those requirements on many products including credit cards, personal loans, auto loans and home equity."
Stephens Washington Bureau Chief Steve Tetreault contributed to this report. Contact reporter Keith Rogers at krogers @reviewjournal.com or 702-383-0308.
LAS VEGAS REVIEW-JOURNAL
Posted: May 22, 2011 | 7:37 a.m.
Updated: May 22, 2011 | 2:18 p.m.
These soldiers and airmen have dropped bombs or have seen them explode in Iraq and Afghanistan, so they know firsthand the stress of fighting the nation's wars.
Now they are battling a different kind of stress at home in the Las Vegas Valley -- the chronic stress that weighs on them from being at ground zero of the mortgage crisis.
When they get orders to move somewhere else, they have no choice but to go. In many cases, they face six-figure losses on their homes through short sales or foreclosure.
They also risk losing their security clearances, which could prevent them from flying warplanes and leading troops after they arrive at their new assignments.
"This has been more stressful than my deployment," said Lt. Col. Eric Wishart, who is trying to sell a home worth 60 percent less than he paid for it. "And going to Afghanistan is no picnic."
Wishart is not alone.
More than a thousand airmen at Nellis Air Force Base have been trapped in the mortgage crisis and are unable to refinance, according to a survey by Rep. Joe Heck, R-Nev.
The survey found 740 airmen upside down on their mortgages don't qualify for the Pentagon aid program, another 263 can't sell their homes at a break-even price and some are renting them at a monthly loss.
Of the base's 8,932 personnel, 32 are in foreclosure and 98 have completed short sales or are in the process of completing one.
After seeing this snapshot of what is happening at Nellis, Heck proposed an amendment to a defense bill to shed more light on the problem.
While the bill doesn't provide funding for an assistance program, it would study the problem nationwide across all branches of the services.
"Service members become distracted by personal and financial issues, rather than focusing on their mission," Heck said earlier this month , noting that a soldier's ruined credit makes it difficult for them to maintain their security clearances.
ONE SOLDIER'S STORY
Wishart, a full-time Nevada National Guard soldier and military science professor who chairs the Army ROTC program at the University of Nevada, Las Vegas, is trying to pay off a 1,550-square-foot house in northwest Las Vegas, where he lives with his wife and two daughters.
They bought the house in 2006 for $327,000, but it is only worth $132,000 based upon its current appraisal and a cash offer in a short sale.
His permanent-change-of-station, or PCS, orders will soon send him to Carson City to work as a battalion commander at Guard headquarters.
He might have been able to avoid a loss through the Defense Department's Homeowners' Assistance Program, but he isn't eligible even though it was expanded in the 2009 economic stimulus bill.
The assistance program through the Army Corps of Engineers is limited to personnel who bought their homes before July 1, 2006, but who sold them because of permanent relocations between Feb. 1, 2006, and Sept. 30.
"What I'm asking for is some protection from deficiency judgments," said Wishart, who served as a combat adviser in Afghanistan during a year's tour that ended in 2009.
"Thank God, no one on our team was killed or injured, but we saw our share of rockets and IEDs," he said, referring to improvised explosive devices, or roadside bombs.
'UPSIDE DOWN A BUNCH'
Three pilots who fly fighter jets at Nellis Air Force Base told similar tales after being reassigned out of state.
Lt. Col. Mike Ballek, an F-15 pilot, said he, too, has been enduring financial stress since he learned in October that he would be moving his wife and son to Washington, D.C., this summer.
They bought a new two-story home in June 2007 in a gated North Las Vegas community. The value of the 2,800-square-foot home is "upside down a bunch, over $200,000," he said Friday.
Like Wishart, he isn't eligible for assistance under the Defense Department program and is losing money every month.
"What people would like to see is maybe expand the window or get rid of the eligibility date. Let people apply and let the folks who run the program make the decision on who's deserving," said Ballek, who, like the other pilots, spoke as a private citizen and not on behalf of the armed forces.
Stress from the mortgage crisis centers on that nagging thought "that potentially all your life savings could be gone. There are a lot of unknowns," Ballek said.
"It's a different kind of stress but still stressful," he said. "In combat your primary concern is not getting shot or making sure that you bomb the right target not the wrong target. This is a different kind of stress, the kind that weighs on you over time ... knowing that you have to figure out how to get out from under the house and what's going to happen in terms of security clearances."
'DO THE BEST FOR MY FAMILY'
Marine Corps Lt. Col. David Berke flies F-22 Raptor jets out of Nellis under a pilot exchange program with the Air Force. He moved here in 2008 and bought a home in North Las Vegas with his wife to start their family. They now have a 2-year-old daughter and a newborn.
"I don't have a waterfall and a helicopter pad, just a reasonably priced home in a reasonable neighborhood. The goal was not being greedy or lavish but to do the best for my family."
With orders to relocate next month to Eglin Air Force Base, Fla., to fly the new F-35 joint strike fighter jets, Berke said he will have to find a place to rent there while continuing to make payments on his North Las Vegas home that he bought for about $250,000 but is now worth approximately $120,000.
He expects to lose between $125,000 and $150,000 on his investment, which has brought on "a significant amount of personal stress."
"It undermines the barrier between your professional life and personal life," said Berke, who has been a Marine pilot for 17 years with multiple deployments to Iraq and Afghanistan.
Berke said when he bought the house in 2008 he thought the home market had hit bottom and the market would return. Now he thinks "there's a distinct possibility that home values will decrease in the future."
LOSING SECURITY CLEARANCE
Air Force Lt. Col. Zac Wood closed on his North Las Vegas house in 2009 thinking the market would recover in the three or four years he would be stationed at Nellis flying F-16s.
"I really never thought I'd find myself in this situation," Wood said.
He and his wife have three children.
"We have it on the market and we're trying to hold on to it and sell for at least what we owe the bank."
While he is not as upside down on his North Las Vegas home as some of the other pilots, his situation is compounded by having his savings tied up in a previous residence in Newport News, Va., that he must rent out at a loss.
He also is worried about losing his security clearance after he moves to his new assignment in Fort Drum, N.Y., his 11th move in 17 years.
"Up until last year my understanding was you could let security know you might have to file bankruptcy and go into foreclosure, and they would kind of understand that. But in the last six months to nine months or so, they've come about and said they're not going to be quite so understanding," he said.
"So I could lose my security clearance. And if I lose my security clearance, I'm kind of useless to the Air Force. Pretty much every job that I could do requires a security clearance."
Wood, an Iraq War veteran, said he loses sleep trying to grapple with the mortgage crisis.
"It's a horribly stressful situation," he said, adding that he tries to find peace of mind through running. "I ran six miles today to get rid of it."
In interviews last week, the three pilots emphasized that they need to protect the integrity of their security clearances. They said they also risk depleting their savings to stay afloat while they try to sell their homes at a loss, or rent them out with a negative cash flow. Additionally, they will be strapped to buy or rent at their new locations that, like Nellis, have either no or limited on-base housing.
THROUGH AN AGENT'S EYES
Real estate agent Aldo Martinez, who retired from the military in 2005, is handling the Wishart family's short sale and has worked with many active duty soldiers and airmen in the Las Vegas area.
He said Congress needs legislation to help what he called "the most underpaid profession in the United States for the amount of sacrifices."
He said even USAA, a lender that "is supposed to be a service member organization," has been no help in resolving the Wisharts' case. He charged the USAA with intentionally interfering with a contract to sell the property.
"It's like lose-lose instead of creating a win-win," Martinez said, describing "the humiliation a person goes through losing their home."
Nicole Alley, a corporate spokeswoman for USAA in San Antonio, said Friday that she didn't have all the details to comment on the Wisharts' case.
Nevertheless, she said, "We're dedicated to those serving the nation and we are sensitive to members having financial hardships in today's economy. That's why USAA goes above the Service Members Relief Act. We go above those requirements on many products including credit cards, personal loans, auto loans and home equity."
Stephens Washington Bureau Chief Steve Tetreault contributed to this report. Contact reporter Keith Rogers at krogers @reviewjournal.com or 702-383-0308.
Multifamily housing lures buyers
By Hubble Smith
LAS VEGAS REVIEW-JOURNAL
Posted: May 20, 2011 | 2:16 a.m.
Updated: May 20, 2011 | 8:57 a.m.
Multifamily housing was the hot investment on the final day of an auction of foreclosed Las Vegas commercial real estate properties and delinquent commercial loans valued at $1 billion, a broker for Colliers International said Thursday.
The Fountains at Flamingo, a 524-unit gated apartment complex east of the Strip, went for $32.5 million, or $61,832 a unit, said Gary Banner, who brought several clients to the auction table.
That's more than double the $15 million starting bid on a $50 million note balance. Banner gave a broker's price opinion, or estimated value, of $76,000 a unit at The Fountains.
"I think it's the better deal out of all the properties," Banner said on the final day of the auction. "They may be walking into a profit of $15,000 a unit."
The 272-unit Augusta Apartments in Henderson opened at $10 million and was bid up to $20.4 million, or $75,000 a unit, by early Thursday morning. Montego Bay Apartments, 420 units in Henderson, had a starting bid of $12 million on a non-performing note of $38 million and sold for more than $28 million.
Investors were "pretty aggressive" on the notes, with multifamily being the most sought-after, Banner said. At least four of the nine apartment complexes met their reserve, or the lender's minimum bid, he said.
Some 65 delinquent loans on office, retail, industrial and multifamily properties were offered during the three-day online auction, with a live bidding room at Cashman Center on the final day. About 500 bidders registered for the auction handled by Irvine, Calif.-based Auction.com.
While some properties sold well, not all moved. Advertised as a $1 billion sale, the auction resulted in sale of just over $330 million in notes, said Todd Gladis, senior vice president for the company.
Nine of 10 bank-owned properties were sold with a 66,000-square-foot retail center on St. Rose Parkway going for the highest price of $6.25 million.
The largest property on the auction block was the 29-acre Sahara Pavilion North retail center on the northeast corner of Sahara Avenue and Decatur Boulevard. It had a starting bid of $12 million on a $56 million nonperforming note. The property did not "trade," Gladis said.
Auction.com chairman Rob Friedman said he's seeing a lot of cash buyers.
"Bottom line, these buyers are getting great deals because the sellers are so motivated," Friedman said as he watched properties pop up on a screen at Cashman as bids came in. Each new bid reset the clock for three minutes.
"The underbidder has a chance to think, confer with his partners and potentially make a bid," he said. "It's exciting if you're online and in the game."
An investor who drove to the auction from Los Angeles said he was looking at a shopping center at 7865 W. Sahara Ave. with a starting bid of $600,000, but his partners told him they were hearing about better deals from other people.
Jeremy Foley, investment broker and leasing agent for Gatski Commercial in Las Vegas, said some investors shy away from auctions, while others see opportunity.
"The REO (real estate-owned) assets have enough due diligence material for investors to make intelligent decisions and accurately price the properties," Foley said of bank-owned properties. "In most cases, they've been given enough lead time to speak with the leasing and property management companies, walk the site, potentially talk to tenants -- although this is typically frowned upon -- and review the due diligence material."
Buying notes is on the opposite side of the spectrum, he said. Due diligence is just the beginning.
"Without being able to interview the tenants or leasing agents, it's nearly impossible to gauge the validity of the rent rolls," the broker said. "Any income information provided could potentially be flawed because the rent roll itself is incomplete. At the end of the day, the value of the majority of these properties is based upon income."
Note assets could potentially take a large and possibly needless discount without that information, plus there are legal concerns about the borrower throwing the property into bankruptcy, Foley said.
Banner of Colliers said that's often an owner's delay tactic, and that lenders and investors have been successful in recouping their costs in 90 percent of those cases.
"Where I see the positive side of this process, if it's successful, is basically unfreezing all the assets here in Vegas that we can't trade," Banner said. "We need that inventory movement and that velocity in the market. The noteholders want to recapitalize their investment and get it back to the market. Now we have assets in stronger hands to reposition the properties to resell them."
Commercial mortgage defaults in Las Vegas began increasing in late 2007, part of the $3.5 trillion wave of commercial real estate losses nationwide that some analysts predicted would be the "next shoe to fall."
Las Vegas real estate expert Richard Lee said he was surprised at how many properties were selling at the auction. Reserve prices were low enough to close the gap between ask and bid, he said.
"It looks like stuff is selling -- more than I expected. Now, selling and closing (escrow) are two different things," said Lee, marketing director of First American Title Co. of Nevada.
Buyers have 10 days to close on the notes and 30 days to close on REO properties, Friedman said.
Contact reporter Hubble Smith at hsmith@reviewjournal.com or 702-383-0491
LAS VEGAS REVIEW-JOURNAL
Posted: May 20, 2011 | 2:16 a.m.
Updated: May 20, 2011 | 8:57 a.m.
Multifamily housing was the hot investment on the final day of an auction of foreclosed Las Vegas commercial real estate properties and delinquent commercial loans valued at $1 billion, a broker for Colliers International said Thursday.
The Fountains at Flamingo, a 524-unit gated apartment complex east of the Strip, went for $32.5 million, or $61,832 a unit, said Gary Banner, who brought several clients to the auction table.
That's more than double the $15 million starting bid on a $50 million note balance. Banner gave a broker's price opinion, or estimated value, of $76,000 a unit at The Fountains.
"I think it's the better deal out of all the properties," Banner said on the final day of the auction. "They may be walking into a profit of $15,000 a unit."
The 272-unit Augusta Apartments in Henderson opened at $10 million and was bid up to $20.4 million, or $75,000 a unit, by early Thursday morning. Montego Bay Apartments, 420 units in Henderson, had a starting bid of $12 million on a non-performing note of $38 million and sold for more than $28 million.
Investors were "pretty aggressive" on the notes, with multifamily being the most sought-after, Banner said. At least four of the nine apartment complexes met their reserve, or the lender's minimum bid, he said.
Some 65 delinquent loans on office, retail, industrial and multifamily properties were offered during the three-day online auction, with a live bidding room at Cashman Center on the final day. About 500 bidders registered for the auction handled by Irvine, Calif.-based Auction.com.
While some properties sold well, not all moved. Advertised as a $1 billion sale, the auction resulted in sale of just over $330 million in notes, said Todd Gladis, senior vice president for the company.
Nine of 10 bank-owned properties were sold with a 66,000-square-foot retail center on St. Rose Parkway going for the highest price of $6.25 million.
The largest property on the auction block was the 29-acre Sahara Pavilion North retail center on the northeast corner of Sahara Avenue and Decatur Boulevard. It had a starting bid of $12 million on a $56 million nonperforming note. The property did not "trade," Gladis said.
Auction.com chairman Rob Friedman said he's seeing a lot of cash buyers.
"Bottom line, these buyers are getting great deals because the sellers are so motivated," Friedman said as he watched properties pop up on a screen at Cashman as bids came in. Each new bid reset the clock for three minutes.
"The underbidder has a chance to think, confer with his partners and potentially make a bid," he said. "It's exciting if you're online and in the game."
An investor who drove to the auction from Los Angeles said he was looking at a shopping center at 7865 W. Sahara Ave. with a starting bid of $600,000, but his partners told him they were hearing about better deals from other people.
Jeremy Foley, investment broker and leasing agent for Gatski Commercial in Las Vegas, said some investors shy away from auctions, while others see opportunity.
"The REO (real estate-owned) assets have enough due diligence material for investors to make intelligent decisions and accurately price the properties," Foley said of bank-owned properties. "In most cases, they've been given enough lead time to speak with the leasing and property management companies, walk the site, potentially talk to tenants -- although this is typically frowned upon -- and review the due diligence material."
Buying notes is on the opposite side of the spectrum, he said. Due diligence is just the beginning.
"Without being able to interview the tenants or leasing agents, it's nearly impossible to gauge the validity of the rent rolls," the broker said. "Any income information provided could potentially be flawed because the rent roll itself is incomplete. At the end of the day, the value of the majority of these properties is based upon income."
Note assets could potentially take a large and possibly needless discount without that information, plus there are legal concerns about the borrower throwing the property into bankruptcy, Foley said.
Banner of Colliers said that's often an owner's delay tactic, and that lenders and investors have been successful in recouping their costs in 90 percent of those cases.
"Where I see the positive side of this process, if it's successful, is basically unfreezing all the assets here in Vegas that we can't trade," Banner said. "We need that inventory movement and that velocity in the market. The noteholders want to recapitalize their investment and get it back to the market. Now we have assets in stronger hands to reposition the properties to resell them."
Commercial mortgage defaults in Las Vegas began increasing in late 2007, part of the $3.5 trillion wave of commercial real estate losses nationwide that some analysts predicted would be the "next shoe to fall."
Las Vegas real estate expert Richard Lee said he was surprised at how many properties were selling at the auction. Reserve prices were low enough to close the gap between ask and bid, he said.
"It looks like stuff is selling -- more than I expected. Now, selling and closing (escrow) are two different things," said Lee, marketing director of First American Title Co. of Nevada.
Buyers have 10 days to close on the notes and 30 days to close on REO properties, Friedman said.
Contact reporter Hubble Smith at hsmith@reviewjournal.com or 702-383-0491
Report puts Las Vegas new-home sales at three-decade low
By Hubble Smith
LAS VEGAS REVIEW-JOURNAL
Posted: May 17, 2011 | 2:18 a.m.
Updated: May 17, 2011 | 10:55 a.m.
New-home sales declined 44 percent from a year ago to just 267 in April and are on pace to barely break 3,000 for the year, research firm SalesTraq reported Monday.
It would be the lowest number that SalesTraq President Larry Murphy said he could remember in more than 30 years.
Last year's total was 5,438, down from a peak of 38,705 in 2005.
The new-home median price dropped to $189,099, a 7.5 percent decrease from a year ago. The average price per square foot of $91.17 is down 12.4 percent.
Murphy said he found 14 new homes in one subdivision sold to a single investor for cash at $140,000 each.
In looking at all 267 sales during the month, he also found that some of the homes were built from 2006 to 2009 and never sold.
"After three years, builders are saying, 'Let's drop the prices and get them off the books.' New-home sales are few and far between right now," Murphy said.
The resale market is taking off with 4,970 sales in April, a 13.8 percent increase from the same month a year ago. That's on the heels of more than 5,000 sales in March.
Median resale price, however, continued to drop to $106,900 in April, down 14.5 percent from a year ago and a step closer to the $100,000 mark that Murphy predicted as a possibility earlier this year.
About 50 percent of homes were purchased with cash and 78 percent were vacant, SalesTraq reported.
"We've been saying that for 18 months and it's still true and prices are still dropping," Murphy said.
SalesTraq showed 822 short sales, or lender-approved sales for less than the mortgage owed, at an average price of $120,000; 785 trustee auction sales at an average of $90,000; 1,973 bank-owned sales at an average of $105,000; and 1,390 nondistressed home sales at an average of $110,000.
Builders pulled 313 permits during the month, a 34 percent decrease from April 2010.
LAS VEGAS REVIEW-JOURNAL
Posted: May 17, 2011 | 2:18 a.m.
Updated: May 17, 2011 | 10:55 a.m.
New-home sales declined 44 percent from a year ago to just 267 in April and are on pace to barely break 3,000 for the year, research firm SalesTraq reported Monday.
It would be the lowest number that SalesTraq President Larry Murphy said he could remember in more than 30 years.
Last year's total was 5,438, down from a peak of 38,705 in 2005.
The new-home median price dropped to $189,099, a 7.5 percent decrease from a year ago. The average price per square foot of $91.17 is down 12.4 percent.
Murphy said he found 14 new homes in one subdivision sold to a single investor for cash at $140,000 each.
In looking at all 267 sales during the month, he also found that some of the homes were built from 2006 to 2009 and never sold.
"After three years, builders are saying, 'Let's drop the prices and get them off the books.' New-home sales are few and far between right now," Murphy said.
The resale market is taking off with 4,970 sales in April, a 13.8 percent increase from the same month a year ago. That's on the heels of more than 5,000 sales in March.
Median resale price, however, continued to drop to $106,900 in April, down 14.5 percent from a year ago and a step closer to the $100,000 mark that Murphy predicted as a possibility earlier this year.
About 50 percent of homes were purchased with cash and 78 percent were vacant, SalesTraq reported.
"We've been saying that for 18 months and it's still true and prices are still dropping," Murphy said.
SalesTraq showed 822 short sales, or lender-approved sales for less than the mortgage owed, at an average price of $120,000; 785 trustee auction sales at an average of $90,000; 1,973 bank-owned sales at an average of $105,000; and 1,390 nondistressed home sales at an average of $110,000.
Builders pulled 313 permits during the month, a 34 percent decrease from April 2010.
Small drop in Nevada rate for troubled mortgages
By John G. Edwards
LAS VEGAS REVIEW-JOURNAL
Posted: May 19, 2011 | 11:06 a.m.
The percentage of residential mortgage loans that are delinquent in Nevada dropped a percentage point during the first quarter, but Nevada remains one of the country's most troubled states for past-due mortgage loans and foreclosures, the Mortgage Bankers Association reported Thursday.
The delinquency rate fell 1.08 percentage points, to 10.6 percent, at the end of March, the association said.
However, the association said mortgage delinquency rates normally decline between the fourth and first quarters because of seasonal factors.
The percentage of loans on which foreclosure was started during the quarter plunged by 0.66 percentage points to 2.3 percent, the association said. Meanwhile, the percentage of loans in the foreclosure process dipped 0.8 percent to 9.32 percent.
Nevada ranks third in delinquencies and first in foreclosures started among all states and the District of Columbia, the trade group reported.
Many individuals with home mortgages are "financially and psychologically exhausted," said Tisha Black Chernine, founding partner of law firm Black & LoBello.
They have tired of waiting for a government program or law to deal with the residential foreclosures, she said.
"I think it's going to take another 12 to 18 months to get where we are secure in our property values," Black Chernine said. "As soon as we have real property stability, we'll start recovering as a state."
She observed a temporary reduction of housing supply as lenders slow down foreclosures, because of government pressure to correct past foreclosure- processing problems. Nevertheless, she said the overhang of foreclosed but vacant houses depresses home prices.
But the number of Clark County homeowners receiving foreclosure notices fell dramatically in April, reflecting a regional decline in foreclosure activity at every level, ForeclosureRadar reported.
Notices of default filings in the county fell 18.1 percent from March and 36.24 percent compared with April 2010. Canceled foreclosures were up 69.54 percent over 2010.
The slowdown in foreclosure activity has also slowed the time properties spend in the foreclosure pipeline. The time to foreclose in Clark County now averages 348 days, 56 percent longer than a year ago. Bank-owned properties are taking 183 days to sell, nearly 20 percent longer than in April 2010.
For all of Nevada, notices of default decreased 17.8 percent in April from the prior month, falling to the lowest point seen since ForeclosureRadar began tracking Nevada foreclosure filings in August 2009.
Notice of trustee sale filings fell 23.7 percent month over month. Activity on the courthouse steps was mixed, with sales back to banks down by 2.7 percent. Sales to third parties, typically investors, were up 6.9 percent from March, and up 81 percent from April 2010. Cancellations were 14 percent higher month over month and 69.5 percent year over year.
LAS VEGAS REVIEW-JOURNAL
Posted: May 19, 2011 | 11:06 a.m.
The percentage of residential mortgage loans that are delinquent in Nevada dropped a percentage point during the first quarter, but Nevada remains one of the country's most troubled states for past-due mortgage loans and foreclosures, the Mortgage Bankers Association reported Thursday.
The delinquency rate fell 1.08 percentage points, to 10.6 percent, at the end of March, the association said.
However, the association said mortgage delinquency rates normally decline between the fourth and first quarters because of seasonal factors.
The percentage of loans on which foreclosure was started during the quarter plunged by 0.66 percentage points to 2.3 percent, the association said. Meanwhile, the percentage of loans in the foreclosure process dipped 0.8 percent to 9.32 percent.
Nevada ranks third in delinquencies and first in foreclosures started among all states and the District of Columbia, the trade group reported.
Many individuals with home mortgages are "financially and psychologically exhausted," said Tisha Black Chernine, founding partner of law firm Black & LoBello.
They have tired of waiting for a government program or law to deal with the residential foreclosures, she said.
"I think it's going to take another 12 to 18 months to get where we are secure in our property values," Black Chernine said. "As soon as we have real property stability, we'll start recovering as a state."
She observed a temporary reduction of housing supply as lenders slow down foreclosures, because of government pressure to correct past foreclosure- processing problems. Nevertheless, she said the overhang of foreclosed but vacant houses depresses home prices.
But the number of Clark County homeowners receiving foreclosure notices fell dramatically in April, reflecting a regional decline in foreclosure activity at every level, ForeclosureRadar reported.
Notices of default filings in the county fell 18.1 percent from March and 36.24 percent compared with April 2010. Canceled foreclosures were up 69.54 percent over 2010.
The slowdown in foreclosure activity has also slowed the time properties spend in the foreclosure pipeline. The time to foreclose in Clark County now averages 348 days, 56 percent longer than a year ago. Bank-owned properties are taking 183 days to sell, nearly 20 percent longer than in April 2010.
For all of Nevada, notices of default decreased 17.8 percent in April from the prior month, falling to the lowest point seen since ForeclosureRadar began tracking Nevada foreclosure filings in August 2009.
Notice of trustee sale filings fell 23.7 percent month over month. Activity on the courthouse steps was mixed, with sales back to banks down by 2.7 percent. Sales to third parties, typically investors, were up 6.9 percent from March, and up 81 percent from April 2010. Cancellations were 14 percent higher month over month and 69.5 percent year over year.
Wells Fargo to hold workshop on mortgage-loan modification
By John G. Edwards
LAS VEGAS REVIEW-JOURNAL
Posted: May 20, 2011 | 2:16 a.m.
Updated: May 20, 2011 | 11:55 p.m.
Wells Fargo Bank will hold its second workshop for homeowners seeking home-loan modifications, and Nevada President Kirk Clausen said the odds of getting help are good.
Last year, 53 percent of the 800 homeowners attending the workshop in Las Vegas were approved for a mortgage workout option, he said. Of those approved, 18 percent received help through the federal government's Home Affordable Modification Program but 70 percent benefited from the Wells Fargo mortgage modification program.
The program is for homeowners who make mortgage payments to Wells Fargo Home Mortgage, Wells Fargo Financial, Wachovia Mortgage and Wells Fargo Home Equity.
The workshops will be conducted from 9 a.m. to 7 p.m. Wednesday and Thursday at the Tropicana conference center, 3801 Las Vegas Blvd. South. Reservations are recommended but not required. Visit wfhmevents.com/leadingthewayhome to register. Call 800-405-8067 for information.
LAS VEGAS REVIEW-JOURNAL
Posted: May 20, 2011 | 2:16 a.m.
Updated: May 20, 2011 | 11:55 p.m.
Wells Fargo Bank will hold its second workshop for homeowners seeking home-loan modifications, and Nevada President Kirk Clausen said the odds of getting help are good.
Last year, 53 percent of the 800 homeowners attending the workshop in Las Vegas were approved for a mortgage workout option, he said. Of those approved, 18 percent received help through the federal government's Home Affordable Modification Program but 70 percent benefited from the Wells Fargo mortgage modification program.
The program is for homeowners who make mortgage payments to Wells Fargo Home Mortgage, Wells Fargo Financial, Wachovia Mortgage and Wells Fargo Home Equity.
The workshops will be conducted from 9 a.m. to 7 p.m. Wednesday and Thursday at the Tropicana conference center, 3801 Las Vegas Blvd. South. Reservations are recommended but not required. Visit wfhmevents.com/leadingthewayhome to register. Call 800-405-8067 for information.
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