Financing Canadians for Las Vegas Real Estate

We have discovered a great lender for Canadians wanting to buy Las Vegas homes or condos, either as a second home or as an investment! This lender charges no loan discount points or origination fees, and the rates are the same as what a US citizen can obtain.

Lately all our blog posts have been about finding Las Vegas mortgages for our clients. With the high rate of national foreclosures, many traditional venues and programs have been discontinued, leaving buyers, even those with substantial down payments, in limbo. It has truly been a challenge for us to find mortgage lenders with reasonable down payment and rate structures.

In our never ending quest for foreign national financing for Las Vegas real estate purchases, we have literally stumbled across a lender who is able to loan money at competitive rates to Canadian citizens. This lender is able to use Canadian credit scores and income to provide mortgage loans for the thousands who are trying to flee a harsh winter climate for a few months each year.

General program guidelines for this lender are as follows:

The program is available for both second homes and Las Vegas investment properties. The minimum down payment is 20%, although the best financing on investment properties would be with a 25% down payment.

The programs that are offered are full qualifying loans. Available are the 3/1, 5/1, 7/1, and 10/1 Adjustable Rate Mortgages. Each is a 30 year loan with a 30 year amortization locking in the loan rate for the short term of the loan. For example, if you got a 3/1 ARM, your start rate would be locked in for three years. (Rates are typically lower for shorter loan locks.)

The typical documentation list is as follows. Based on your own individual circumstances, more documentation may be required:

2 years personal tax returns including all pages and schedules
2 years T4s
2 years corporate tax returns including all pages and schedules (if self employed)
Most recent 2 months bank statements reflecting name, account number, and 2 month transaction history
Most recent 1 month retirement / investment account statement reflecting name, account number, and current balance.
Mortgage statement on any property owned in borrowers personal name reflecting name, property address, current balance, current interest rate, and current payment.
Line of credit statement on any property owned in the borrowers personal name reflecting: name, property address, current balance, current interest rate, current payment, and available balance.
Lease agreement for any rental properties.
Clear copy of passport to include the signature page and picture page.
Two unique benefits of this lender are their rate renegotiation prior to closing and their loan modification process.

The rate renegotiation is available to a client in the event that they lock their rate in but before closing rates drop. The borrower has the ability to renegotiate the rate to that day’s pricing with a modest premium paid.

The loan modification process would come in to play should rates drop after the borrower has closed the loan. There is a one time modification available to the borrower. It allows them to simply lower the rate with no documentation, appraisals or closing fees that a refinance would incur. It is one page that the client signs and it gets recorded behind the deed of trust. Again, a modest fee is paid for this privilege should the borrower elect to take advantage of it.

Like all loan programs, there is no guarantee on how long this one will last. So if you are a Canadian citizen who has been thinking about purchasing property in the States, call us right away so we can put you in touch with this lender. 702-985-7654 Once your financing is in place, we can find you a phenomenal STEAL on Las Vegas foreclosures! Las Vegas Nevada real estate hasn’t been priced this low in almost ten years.

Financing for Foreign Nationals Discontinued – Easy Come, Easy Go

Once again the mortgage lending guidelines have changed with the wind. For a brief period there was a window for foreign nationals to obtain mortgage financing on investment and second homes in the United States with down payments as low as 25%, but now that window has been slammed shut along with a host of other “make sense” loan programs. (Don’t even get me started on condo hotels that can’t be financed by anyone with even 50% down!) 

Many of the foreign nationals who contacted us in recent weeks were willing to put down as much as 30% to 40% or even 50% on Las Vegas foreclosures. With the current housing market crunch, what are the big banks thinking? Here are people with real money, good credit and big down payments that would love to take advantage of lower prices and they can’t get financed?!!! Some of these investors were already under contract on projects in development, and they may have to walk away from substantial deposits unless alternative financing is brought online. (Just as a side note, permanent resident aliens are still able to obtain financing on the same terms as US citizens. If you are a permanent resident alien and need a Las Vegas mortgage, please contact us at 702-985-7654 so we can put you in touch with the right lender.) 

On top of all this, with the stock market dives globally, even those foreign investors who didn’t need financing and were planning on paying all cash are now stepping back as they watch the value of their portfolios diminish. The Euro is back down to 2005 levels and the British pound has plummeted even below that level. 

Canadians, who saw their dollar rise to all an all time high against US currency at $1.10, have watched it tumble in just the past few days to 79 cents versus the US dollar. Literally thousands of Canadians were looking for winter getaways in the US, but have had to put their plans on hold. Again, many of these were all cash buyers looking for modest Las Vegas condos under $100k, but with the devaluation of their dollar they have once again been priced out of the market without financing. 

And even US citizens are being crunched/punished in the mortgage marketplace. The latest is that anyone who has three or more properties with any kind of mortgage on them cannot get financing for a fourth property. Again, even if they are willing to put 50% down and have low loan to value ratios on their existing properties and excellent credit and income, they still can’t get a fourth loan. Not even if you’re Donald Trump. 

With all the resale Las Vegas homes and condos for sale, not to mention the hundreds of thousands nationwide, and all the opportunities to pick up great deals on foreclosures, our banks are not willing to lend to these impeccable buyers who want to buy and have money. Certainly I am not suggesting we should go back to no or low money down programs with no income or asset verifications. But why not create some solid loan programs to entice these good buyers, whether or not they are citizens of the US? The banks would be able to lower their inventories of properties substantially, which would in turn stimulate the economy and gradually raise prices again in a controlled manner.  

All I know is that in the months to come, those with cash who are willing to take a chance on the market now are probably going to come up looking like geniuses in couple of years. My other prediction is that while Las Vegas real estate was one of the first to fall, it will also be one of the first to recover, and I am personally putting my money where my mouth is.

Making an Offer Subject to a Short Sale on Las Vegas Homes

 Of all the types of distressed properties, shortsales are probably the hardest to close escrow on. Often the seller is still living in the property. He or she may have invested their life savings making a down payment that has disappeared with a declining market. They are upset that they are losing their home and fearful, as they will probably have little or no money to make a move with. Plus their credit is shot and there are few landlords that will even consider renting to them without a substantial deposit. Of course, if they had a substantial deposit, they could afford to make their monthly payment!

And even if the seller is cooperative, there is still the bank to contend with. In a market that is inundated with requests for short sale approval and where there is a large inventory of properties that have gone all the way through the foreclosure process, the bank’s loss mitigation departments are backed up and understaffed. And often there is more than one bank to seek short sale approval from. (During the recent subprime lending years, buyers who had no down payments were able to borrow 100% of the purchase price on their home. Usually this was accomplished by putting both first and second Las Vegas mortgages on the property.) Very likely the second mortgage holder is going to be wiped out and has very little incentive to approve the sale.

Currently there are just over 5000 homes for sale in Las Vegas that are in short sale status, and of those almost 4,000 are priced under $300,000. (By comparison, there are just over 2,000 Las Vegas foreclosures or REOs, bank owned properties.) It is taking anywhere from 30 to 60 days to get an approval from the bank on a short sale. And the listing agent must jump through hoops getting the proper documentation together so that the lender will consider an offer in the first place. A typical Las Vegas short sale package would include:

Seller’s Hardship Letter
Offer and Counter Offer on Subject Property
Estimated Net Sheet
Buyer’s Approval Letter
Seller’s Last Two Pay Check Stubs
Statement of Seller’s Monthly Expenses
Copy of MLS Listing
Listing History of Subject Property
County Tax Record for Subject Property
Recent Comparable Sales for Subject Property

The seller must be able to prove that they have insufficient income to pay the monthly payment and that they have no other assets. The listing agent must be able to show a concerted effort to market the home for the best possible price. And once the offer is approved, if the listing agent forgets to put an expense on the estimated net sheet, the bank will refuse to pay it as they feel they based their decision on flawed information. Oftentimes it is difficult for the listing agent to accurately assess the costs as they may include sewer bills, unpaid HOA assessments or unrecorded mechanics liens.

And once the bank does finally approve the short sale, if another higher and better offer is received, the bank can choose to unapprove the first offer. They are not the owner of record for the property and no negotiated approval is binding on them in a short sale.

So if you are thinking of purchasing a short sale property, you need to have lots of patience, a great Las Vegas real estate agent and a bit of luck!

Differences Between Short Sales and Bank REOs or Repos

As you know, it is a great time to be a “buyer” in our Las Vegas real estate market.  Pricing on homes is almost back to the 2005 level, with many of them reduced to be “moved” by the banks. REOs and short sales currently make up almost 40% of the Las Vegas homes for sale.

Bank repos, also known as REOs (real estate owned), are properties that have already been foreclosed upon by the bank. They may be in pretty rough condition, and it is very common for the landscaping to be completely dead and have to be replaced. They are sold “as is, where is” with no warranties. But in some cases you can make your offer contingent upon an inspection to see if any major repair work may be required.  (Some banks won’t allow the due diligence period for an inspection, so you may have to have one done prior to making an offer.)   

Having said all that, you can get a “good deal” with a bank owned property as long as you allow for these extra costs and buy the home for the right price to begin with.  Just because it is a foreclosure, it may or may not be a great deal.

Short sales are a different creature.  The homeowner is behind on their payments, and, in most cases, is hoping that the lender(s) involved will let them sell “short” of what is owed.  This means the bank(s) has to approve the sale.  Again, in some cases, the house will be listed at an extremely low price designed to entice offers.  These offers are brought to the lender (s) for approval and if there is more than one offer, the bank(s) will negotiate the prices up, if possible, to reduce their losses.  Some banks may take 30-45 days to even respond to an offer, perhaps hoping to get more than one.  And the bank usually does not sign off on the offer until just prior to closing, which means they may also accept a new offer up to that point. So even though you have verbal acceptance, until it is actually signed, a short sale can be revoked at any time.

Don’t overlook regular owner occupied “turn-key” homes in this market either.  Lately, most homes are priced to compete with the foreclosures: they come with home warranties and they don’t need out-of-pocket cash dropped into them like most of the Las Vegas foreclosures do. 

If you think you are interested in a foreclosure or short sale, send us the general parameters of what you are looking for: price range, number of bedrooms, pool, location etc.  We will be happy to place you on our automatic email update system that will immediately send you any new listing that comes on the market with your foreclosure criteria.  (The best ones go fast, so be prepared to act quickly!) Or call us at 702-985-7654 to discuss doing a customized search for you.

Las Vegas Foreclosures and Auctions – Free Seminars on Buying a Dream Home, Not a Nightmare!

Everyone in the housing market these days is looking for a “steal.” But around the country purchasers are finding that buying a property through foreclosure or at auction is not an easy process. There is no standardized format for purchasing, and banks and auction houses are selling these properties “as is, where is.” So “buyer beware” is certainly applicable.

Las Vegas -  (PRWeb) Currently the number of Las Vegas foreclosures is among the highest in the nation, and foreclosed inventory on the market has driven down prices in the Valley substantially from the all time highs of 2005. Investors are returning to the city to pick up great deals and benefit from the strong local rental market, while first time buyers are taking advantage of affordable housing. Lower priced Las Vegas homes under $250k are even receiving multiple offers, lending strength to the belief that the Las Vegas price decline may have bottomed out.

For those desiring to take advantage of the lowest prices in the past three years, but leery of buying a “lemon,” a series of FREE 45 minute seminars on foreclosures and Las Vegas auctions is being sponsored by the Tonnesen Team of Prudential Americana Group Realtors. Speakers will be acknowledged specialists in the foreclosure and auction process. Participants will receive printed information on the “how to’s” of purchasing along with detailed property listings, and there will be an open question and answer period. Each foreclosure seminar will cover a different area of the Las Vegas Valley, and each auction seminar will cover a specific upcoming auction event.

The next free auction seminar covering the details on the upcoming Hudson and Marshall Auction will be held on Tuesday April 1^st at 6pm at 871 Coronado Center Drive, Suite 100, Henderson, NV. This auction will cover 100’s of properties around Las Vegas, Henderson and North Las Vegas, with starting bids beginning in the $50k range but also covering high end luxury properties as well. (Exact dates and place for the auction are yet to be announced, but it will take place sometime in mid April.) This seminar will include:

1. getting pre-registered to bid at the auction
2. catalogue of the properties to be auctioned
3. how to do your due diligence prior to the auction
4. how the auction process works
5. what to take with you to the auction
6. preferred lender on hand to pre-qualify you to bid

The next free foreclosure seminar will be held on Sunday April 13^th at 2pm at 871 Coronado Center Drive, Suite 100, Henderson, NV. Foreclosures in the areas of Anthem, Seven Hills, Green Valley and Lake Las Vegas will be covered. Included at the seminar will be our “Top Foreclosure Picks” followed by an optional private tour of properties. This seminar will include information on:

1. the differences between foreclosures and shortsales, and how it affects you as a buyer
2. what to expect when bidding on a foreclosure – what the bank will and will not do
3. doing due diligence on foreclosure properties
4. a complete list of foreclosed properties in the day’s featured area
5. agents on hand to do a custom search of foreclosure properties that meet your budget and needs
6. preferred lender on hand to pre-qualify you to put an offer in on a foreclosure (required on all bank owned properties)

Call 702-958-7654 to register now, or register online at: www.greatlasvegashomes.com/las_vegas_real_estate_investments.htm to participate in upcoming seminars.

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