Foreclosure Las Vegas Blog

The buss these days is all about Foreclosures and Short Sales, and there is a lot of interest in buying bank owned properties.  And rightfully so.  You wouldn't believe the bargains to be found in Las Vegas today, and all because of the volume of Foreclosures in the last several months.  However, with so much information to be found, some of what you read and hear is going to be valuable, and some quite frankly is bad.  The internet is loaded with questionable information about the subject.   Often the information offered is for sale, with the promise that you can make a lot of money with little effort once you know “the secret formula”.  The fact is that there are no secrets, and to make money does require effort.  Let us help you sort the facts from the fiction.  The right decision can make you wealthy.  The wrong one can cost you dearly.

What’s an REO?
REO is an internal Bank term.  It stands for “Real Estate Owned”.  These are properties that have gone through foreclosure and are now owned by the bank or mortgage company.  This is not the same as a property up for foreclosure auction.  When buying a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees accumulated during the foreclosure process.  You must also be prepared to pay with cash in hand.  And on top of all that, you’ll receive the property 100% “as is”.  That could include existing liens and even current occupants that need to be evicted.  A REO, by contrast, is a much “cleaner” and attractive transaction.  The REO property did not find a buyer during foreclosure auction.  The bank now owns it.  The bank will see to the removal of tax liens, evict occupants if needed and generally prepare for the issuance of a title insurance policy to the buyer at closing.  Do be aware that REO’s may be exempt from normal disclosure requirements.  In Nevada, for example, banks are exempt from giving a Real Property Disclosure Statement, a document that normally requires sellers to tell you about any defects they are aware of.  This need not, and should not scare you off.  You may still be able to reserve the right to obtain a property inspection from a licensed inspector.

Is it a bargain?
It’s commonly assumed that any REO must be a bargain and an opportunity for easy money.  This simply isn’t true.  You have to be very careful about buying a REO if your intent is to make money off of it.  While it’s true that the bank is typically anxious to sell it quickly, they are also strongly motivated to get as much as they can for it.  When considering the value of a REO, you need to look closely at comparable sales in the neighborhood and be sure to take into account the time and cost of any repairs or remodeling needed to prepare the house for resale.  The bargains with money making potential exist, and many people do very well buying foreclosures.  But there are also many REO’s that are not good buys and not likely to turn a profit.   We are there to help you with that evaluation, and help you navigate the potential mine fields.

If you would like a copy of our free daily update of the top 10 Foreclosure Deals in Las Vegas, simply give us your email address and name, and we will include you in our "Top 10 Daily Hotlist" Blast.  If you have a particular area and/or price range that you are interested in let us know, and we will customize a "Top 10 Daily Hotlist" Blast just for you.  There is no obligation, but we promise prompt, courteous, and confidential service.

This is a question I get asked a lot.  "With the volatility of the market, and interest rates fluctuating, and Foreclosures at an all time high, should I buy now, or should I wait for the market to drop some more."  consider the following chart courtesy of Lending Tree.

As you can see from the above example, if you wait for the price to go down 10%, but the interest rate only goes up 1/2%, your payment will be the same.  The chances of the interest rates going up 1/2 or even 1% are as good as that prices will decline another 10%.  However, if you wait, you will have lost the pride of ownership, the potential to build equity, the tax advantages as a result of interest deductability, and perhaps the house you want today, verses a house you might not like as much a year from now.  Perhaps the biggest reason is what I call the "BDF" which stands for "Bank Desperation Factor."  Right now, Banks are desperate to get bad loans and REOs (That is their term for Foreclosures - it stands for 'Real Estate Owned') off their books.  The reason is simple; the more bad loans and REOs in their portfolio, the less money they can loan, the less solvent they are, and the less profitable they are.  The result?  The prices on Foreclosures today are so low, you might consider it legal theft.  But when the investors come back out of the woodwork as they already are we will see prices of Foreclosures firm back up.  The other day I showed a Foreclosure property that had 15 offers on it by the end of the weekend.  (That one was way low, which sparked the feeding frenzy among the investment sharks).Bottom line:  Don't wait to buy.  Click on and fill out the interest form now, and we will - without pressure - give you all the information you need to find and buy the right property, if you determine that the time is right for YOU.