Home Buyer Workshop

hosted by
Cynthia Weber Vice President of Retail Lending, Guaranteed Rate

and Tammy Kilen Realtor, Direct Performance Real Estate Partners

These two proven experts will share valuable information and answer your questions!
* Time is running out to receive your federal tax credit! *
* Take advantage of historically low interest rates! *
* Is it time for you to refinance? *
* Have you been pre‐approved? *

Guaranteed Rate Office
7250 Peak Drive • Suite 210
Las Vegas, NV
Tuesday • March 16, 2010
6:00 pm
Q&A • Professional Advice • Refreshments
FREE however RSVP is required
Cynthia Weber 702.217.1472
cynthia.weber@guaranteedrate.com

Receive $1000 off Closing Credit Coupon just for attending!
As per this CBS Moneywatch.com news clip, Now is the time to buy

This week home mortgage borrowers got the latest word on how much they owe compared to the actual value of their real estate – and the numbers are only getting uglier.

First American CoreLogic, a company that gathers data on millions of mortgages that have been packaged into securities for investors, reports that nearly one in four home loans nationally is now larger than the actual value of the home that backs it. In other words, one-quarter of all home loans are underwater!

In just the last three months of 2009, plummeting home prices and accumulating debts pushed 620,000 more homeowners into negative territory.By far the worst off are borrowers in Nevada, 70 percent of whom now owe more than their homes are worth. Not far behind is Arizona, where more than half of borrowers are underwater, and Florida, where 48 percent are in for more than their homes’ value. New York is weathering the storm the best, with just 6.3 percent of borrowers owing more than their homes are worth. (New Yorkers who own should be thankful for their perpetual housing shortage, since it helps keep prices strong.)

For most homeowners, negative equity is just a temporary setback – like watching your stock portfolio dip below where it was when you bought it. Eventually, odds are the values will recover.

But the new numbers show that for an increasing number of homeowners, negative equity is becoming a way of life – and that means living on the edge of foreclosure. Negative equity sharply increases the odds that a homeowner will decide to “walk away” and stop making mortgage payments. And even if a homeowner is eager to avoid foreclosure, owing significantly more than a home is worth usually makes it impossible to refinance or sell the home. If that owner loses his or her job and can’t find another, or needs to get out of an adjustable rate mortgage, a future foreclosure is likely.

Plummeting home values aren’t the only reason homeowners are sinking more deeply into the hole. Borrowers hold hundreds of billions of dollars’ worth of Option ARMs, which allow borrowers to pay less each month than it would actually cost to pay off what they owe on the mortgage so what they owe actually grows. Most borrowers with Option ARM mortgages have only been making those minimum payments. Interest rates are low right now, so some are managing to make a dent in their loan balances anyway. But as rates rise, which they inevitably will, these borrowers are poised to fall farther and farther behind – and when they fall too far below the total amount of principal they owe, their monthly payments are programmed to jump sharply.

In the coming two years, according to Amherst Securities Group, borrowers will see these payment spikes on more than $150 billion worth of Option ARM mortgages. That means that they’ll be forced to start spending more each month, and start catching up with what they actually owe on the house. And if they can’t? That’s when the sheriff comes calling.

The good news: nearly half of all homeowners with a mortgage still have equity in their home. Which side of the picket fence are you on?

In this buyer’s market, along with the first-time home buyer’s tax credit stimulus, many people are finally able to take the plunge into home ownership. But for some, the waiting game seems to be paying off because, depending on the market, while some home prices are slowly creeping back up, some continue to drop. So in this stock market-type game, how do you know which way home prices are going in your neighborhood? Are there any indicators you could watch for to potentially give you a leg up?

Keith Vermilyea blogs about what you should be paying attention to if you want to get a better idea of which way home prices may be going.

“Traditionally, people have been willing to pay a modest premium to own a home rather than rent it. Recent studies report that in 1999 rents averaged 87 percent of the after-tax mortgage payment for houses and condos of similar size in the same neighborhood.

With historically low mortgage rates, plus the home buyer tax credit, this could be a great time to be buying or selling.”

Keith Vermilyea says that paying attention to rental rates in your area could serve as a good barometer as to which direction home prices may be headed in a neighborhood. If rental rates are going up, home prices will soon follow. Call me today for your free pre-approval. This way you will be armed and ready to purchase your home before it is too late~!!!!

BREAKING NEWS:
Local news media recently reported that our own Mr. Las Vegas was like so many homeowners by being behind in his payments on his huge Vegas Estate know as Casa de Shenandoah. Newton’s 38-acre residence in Las Vegas at Pecos and Sunset roads is just down the road from where I call home.

Reports state that Mr. Newton is delinquent on a $3.35 million loan. The loan, which initially was for $3.75 million in 2006 but was modified in 2007 to $3.35 million and was secured by Newton’s residence and associated Las Vegas land, as well as an aircraft described as a Fokker F.28 MK 1000.

The loan was to be repaid by May 30, 2009, but the Newtons failed to pay back all that was due and the loan has been delinquent since then.

UPDATE:
This morning the Marshall’s office arrived at Casa de Shenandoah along with three moving vans. It seems that Wayne Newton is walking away (or being carried away) from this beloved home and our Vegas landmark which has also seen the value drop to $2 million.

Wayne Newton is currently under contract with The Tropicana Hotel. His show entitled, “Once Before I Go” is scheduled to end in April. Does this mean that Mr. Las Vegas will be unemployed AND homeless?
That is sooooo Las Vegas.
~Cynthia Weber

CBS Morning Show video of when they toured Wayne Newton’s Home:

It’s the kind of story that makes you think about the millions of Americans who aren’t quite at the end of their rope, but might be getting close.

Terry Hoskins had been in a multi-year struggle with his bank. He wasn’t paying his mortgage – or any of his other debts. Finally, the bank began foreclosure proceedings over his $350,000 Clermont County, Ohio home.

Terry’s complaint is that he owed $160,000 on a $350,000 house, but the bank still wanted to foreclose. After dragging this out for 10 years, the bank decided enough was enough. Terry decided that if he couldn’t get the bank to agree on a solution other than foreclosure, he might as well bulldoze the house.

In short: If I can’t play, I’m taking my ball and heading home.

WLWT created this video that shows a photo of the house before Terry tore it down (nice pool!) and then videotaped the bulldozer in action. In it, Terry explains his rationale for bulldozing his house.

What happens next?

The bank will now foreclose on a vacant property (or a pile of debris, if Terry didn’t pay to have the remains of the house removed). Terry apparently has other debts, from a business that has failed. He will still owe on those and he may owe the bank money above and beyond what the lot is worth.

I know I’ve written quite a bit about being underwater with your mortgage and strategic defaults. Bulldozing your house just pushes the concept “strategic default” to a whole new level.
Ilyce Glink

If you’re feeling better lately when you look at your Netflix (NFLX) queue, e-ticket or online stock portfolio, you’re not alone. A new study says consumer satisfaction with online retailers is up, especially with online brokerages and travel-booking sites. The report also hints that consumers may be ready to spend more online.

“While economists debate whether or not the recession is truly over, and whether the economy will get better or worse, the increase for the e-commerce sector bodes well for all companies concerned,” wrote Larry Freed, CEO of market research firm ForeSee Results and the study’s author. ForeSee Results analyzed the rankings of online retailers produced by the American Customer Satisfaction Index, a measurement created by the University of Michigan’s Ross School of Business, which crunches millions of customer evaluations from more than 200 companies and government agencies.

The ACSI, which has been collecting measurements for the last decade, is generally good at predicting future success, so a rebound is good news for industries hit by the recession, according to Freed’s report. Online retailers generally haven’t suffered as much as bricks-and-mortar stores during the recession — the recent Commerce Department retail sales tally found online stores’ sales were up 12.4% in January — but the travel and brokerage sites did feel the pain as consumers shut their wallets.

As the Markets Go, So Go Brokers

Consumers are now happier with their brokerage sites, thanks in no small part to the stock market’s rebound. The group’s score rose 5% in 2009 after dropping 6% in 2008, mostly because of gains by E*Trade Financial (ETFC) and TD Ameritrade (AMTD), which both raised their scores by 7%. But the sector’s favorites were two traditional investment houses, not Web-only players: Fidelity Investments and Charles Schwab (SCHW).

That e-brokers are more popular is no surprise, according to the study’s authors. After all, the S&P 500 index lost 38.5% of its value in 2008 — most of it late in the year — and then regained some of the lost ground in 2009, rallying up 23.5%.

“When the market crashes, customers aren’t happy. When it recovers, they feel better about their experience,” said Claes Fornell, a professor at the University of Michigan, in a statement. “But the improvements in e-retail and online travel are a good sign that consumers may be ready to spend again, if they can find the means to do so.”

More Popular Than Bricks and Mortar

Satisfaction with online travel sites rose for the first time in five years. Most improved in the sector was Priceline.com (PCLN). The auction site, which has been expanding its regular travel reservations services, increased its score by 5.6%. But it couldn’t catch up with Expedia (EXPE), which is still the leader in the e-travel segment.

Satisfaction scores at online stores, which dipped slightly last year, rose again in 2009, and the e-tailers are even more popular than bricks-and-mortar stores. The ForeSee study notes the average customer satisfaction index for e-tailers is 9% higher than the average for all of retail. The sites have compensated online shoppers, who can’t physically touch their products, by giving them 24/7 access and more product information than they can get in a store, the study says.

Netflix, which turned the video-rental business on its head, has the best customer-satisfaction among e-tailers, followed by Amazon.com (AMZN) and computer e-store Newegg.

Keeping Customers Happy

However, the report also warns that Amazon, which had been the leader in customer satisfaction for years, should “take heed” that its rankings have stayed put for the last two years and been overtaken by Netflix and Newegg. Freed notes that Netflix and Overstock.com (OSTK) have both raised their scores during the recession, while Amazon and eBay (EBAY) haven’t yet recouped their losses.

Some retail analysts estimate that about one-third of shopping decisions made last holiday began with a Web search and that this number will grow in 2010 while consumers remain very cautious in their spending and retailers keep upgrading their sites. With retail not out of the woods yet — consumer confidence has been up and down lately — keeping customers happy online could move the needle forward
By MERCEDES CARDONA

If you hate your bank, you aren’t alone. In the wake of bank failures and shotgun marriages resulting from the financial crisis, customers are far less satisfied with the service they’re receiving from the nation’s two biggest banks. Bank of America’s (BAC) controversial acquisition of Merrill Lynch and JPMorgan Chase’s (JPM) purchase of Washington Mutual, once the nation’s biggest savings and loan, have consumers giving both institutions the thumbs down.

Customer satisfaction with the finance and insurance sector as a whole improved slightly last quarter, according to the most recent report from American Customer Satisfaction Index (ACSI), released Tuesday, but that was because folks were a bit happier with their insurers. As for Bank of America and JPMorgan Chase, the numbers suggest that giving away free toasters won’t be enough to make up for their shortfalls in satisfaction.

Bank of America saw its customer satisfaction reading plunge 8% to an industry low score of 67 out of 100 points, according to ACSI, while JPMorgan Chase dropped 7% to 68. “Bank of America and JPMorgan Chase … face a challenging customer environment with significant drops in satisfaction,” the survey concluded.

The reasons for the drops in satisfaction are pretty obvious, according to ACSI. Bank of America customers are suffering from the cost-cutting undertaken to offset higher-than-expected debt resulting from the Merrill Lynch acquisition. Meanwhile, JPMorgan Chase is having difficulties swallowing Washington Mutual — and it’s the customers who are getting indigestion.

Overall customer satisfaction with banks held steady, albeit at just 75 out of 100 points, and not all big acquisitions have to lead to consumer heartburn. One year after it scooped up Wachovia, satisfaction with Wells Fargo (WFC) actually improved 1% to … drum roll please … 73.
By DAN BURROWS

Credit cardholders, listen up: On Monday, new federal regulations will take effect, changing the relationship between you and your card issuer.

The changes are part of the Credit Card Act of 2009, signed into law last May. Congress approved the legislation to end what consumer groups have called unfair and deceptive business practices. But critics say the heavier regulations will make credit cards more costly for everyone.

The primary focus of the law is to eliminate unexpected fees and interest-rate hikes. Many consumers had complained to lawmakers and regulators about credit card issuers retroactively imposing interest-rate hikes on existing balances. In other words, a customer would borrow money under one set of terms — only to get an ugly surprise when the bank suddenly pushed up the interest rate.

Studies estimate that by eliminating unexpected rate hikes and fees, the law could save consumers about $10 billion a year.

But critics say tougher rules will make credit more costly for good customers. If card issuers are barred from imposing retroactive rate hikes on existing balances, then they may try to make up the difference elsewhere. So, for example, consumers may see the return of annual fees on credit cards.

Years ago, credit card issuers routinely charged annual fees. But since the 1990s, most have eliminated them. Now, they may come back. Or there could be inactivity fees imposed on customers who don’t use their card very often.

Here are some of the key provisions:

— Interest Rates: Card issuers cannot increase interest rates during the first year on new accounts. In most cases, retroactive rate increases are prohibited.

— Payments and Billing: The issuer has to set the payment-due deadline on the same day each month.

— Fees: Consumers cannot be charged extra fees for making payments online, by phone or by mail.

— Disclosures: Issuers must notify cardholders of significant changes to their account terms at least 45 days before the changes take effect. If the consumer objects to the changes, he or she can close the account, or “opt out.”

— Young People: Consumers younger than 21 need an adult co-signer to open a credit card. In addition, the card issuers cannot entice students to sign up by offering free pizzas or other gifts within 1,000 feet of a college campus.
by Marilyn Geewax

Breaking News from IHOP
Join IHOP to celebrate National Pancake Day on Tuesday, February 23, 2010 From 7am to 10pm, we’ll give you one free short stack (three) of our famous buttermilk pancakes. All we ask is that you consider making a donation to support local children’s hospitals through Children’s Miracle Network or other charities.

About National Pancake Day
Since beginning its National Pancake Day celebration in 2006, IHOP has raised more than $3.25 million to support charities in the communities in which it operates. While IHOP’s National Pancake Day typically takes place on Shrove Tuesday, this year the company will host its free pancake event on Tuesday, February 23, extending the fundraising window by one week to maximize donations for Children’s Miracle Network. With your help, we hope to raise $5 million in five years for Children’s Miracle Network and other local charities through your donations in 2010!

Known also as Fat Tuesday or Mardi Gras, National Pancake Day dates back several centuries to when the English prepped for fasting during Lent. Strict rules prohibited the eating of all dairy products during Lent, so pancakes were made to use up the supply of eggs, milk, butter and other dairy products…hence the name Pancake Tuesday or Shrove Tuesday.

To find an IHOP near you: http://ihoplocator.com/