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Las Vegas, have you gone green yet??

The new buzzword these days is ‘have you gone green?’ You see it and hear about it everywhere you turn. Sales of large SUVs are down and small car sales are way up. Have you purchased your hybrid vehicle yet? My in-laws live in San Francisco and our last trip there I noticed that many grocery stores do not offer plastic bags anymore. Other stores are charging a tax if you insist on a plastic bag.  I was flipping through the channels the other day and came to a channel showing some guys working  on a ‘69 Camaro; one of the guys was Anthony Kiedis from the Red Hot Chili Peppers. I have been a fan of the band since I was a kid so I decided to see what Anthony was doing on a car show. It ended up he had purchased the Camaro and was converting it to an electric car.  I wasn’t even aware something like that could be done, but what a great idea!!

You may be asking what can I do to save the environment and can I really make a difference anyway. My wife and I have been putting in a conscience effort to do our part in “saving the environment.” Has it made a difference? I’m not really sure but I can tell you we both feel better about doing what we can. You can only control your own actions and I believe the more that people see the small minority making a difference the more popular it will become and hopefully someday it will be the new norm. There’s many things you can do to make a difference.  You may be thinking where do I start and where should I focus my efforts? Well, I came across a book that may help; it is called The Green Book: the everyday guide to saving the planet one simple step at a time by Elizabeth Rogers and Thomas Kostigen.

Description:

Ellen DeGeneres, Robert Redford, Will Ferrell, Jennifer Aniston, Faith Hill, Tim McGraw, Martha Stewart, Tyra Banks, Dale Earnhardt, Jr., Tiki Barber, Owen Wilson, and Justin Timberlake tell you how they make a difference to the environment.

Inside The Green Book, find out how you can too:

- Don’t ask for ATM receipts. If everyone in the United States refused their receipts, it would save a roll of paper more than two billion feet long, or enough to circle the equator fifteen times!

- Turn off the tap while you brush your teeth. You’ll conserve up to five gallons of water per day. Throughout the entire United States, the daily savings could add up to more water than is consumed every day in all of New York City.

- Get a voice-mail service for your home phone. If all answering machines in U.S. homes were replaced by voice-mail services, the annual energy savings would total nearly two billion kilowatt hours. The resulting reduction in air pollution would be equivalent to removing 250,000 cars from the road for a year!

With wit and authority, authors Elizabeth Rogers and Thomas Kostigen provide hundreds of solutions for all areas of your life, pinpointing the smallest changes that have the biggest impact on the health of our precious planet.

Hopefully this will raise some awareness and get you all on the path to making the earth a cleaner, healthier place to live.

Las Vegans, Housing Incentive Debate in House and Senate

The Senate is presently debating a major housing bill that includes both tax and FHA changes designed to shore up the troubled market. The Senate bill (H.R. 3221) has four tax provisions. It includes a one-time special property tax deduction of $500 for individuals who do not itemize their deductions. A second provision directed to homebuilders provides them with additional tax benefits associated with net operating losses generated during 2007 and 2008. The bill allows state housing agencies to issue mortgage revenue bonds (MRBs) up to $10 billion to refinance subprime mortgages. Finally, the bill creates a tax credit that would be available for one year from date of enactment to individuals who purchase foreclosed properties. The credit would be a $7000 credit to be taken in increments of $3500 for two years from the year of purchase.

The House Ways and Means Committee will mark up a package on Wednesday, April 9. Like the Senate package, the Committee’s bill will include additional authority for state housing agencies to issue MRBs for refinancing subprime mortgages. The package will also include important modifications of the low-income housing tax credit. The credit was enacted in 1986; these changes are intended to modernize several of its provisions. Of primary interest to Realtors is a proposal for a tax credit for the purchase of a home. Unlike the Senate bill, the Committee version will not restrict the types of property that would qualify for the credit. The credit would be available for first-time homebuyers. The amount of the credit will likely be somewhere in the range of $7500 - $9000. It will likely include income limits on prospective purchasers in a range between $70,000 to $75,000 on a single return or $110,000 to $150,000 on a joint return. No matter what the income limit, it will have a phase out so that individuals who earn a dollar (or more) than the designated amount will receive some portion of the credit, but not the full amount.

The Senate bill is being considered as an “emergency” and so is being debated under procedures that do not require that the tax benefits be “paid for.” The Ways and Means bill will be “paid for,” but the contemplated revenue raisers do not relate in any way to real estate.

HUD Requiring Two Appraisals for Some New Jumbo Loans

On April 1, 2008, the US Department of Housing and Urban Development (HUD) released mortgage letter 2008-09 announcing that mortgages that exceed the January 1, 2008, conforming loan limit of $417,000 may require two appraisals. A second appraisal is required for these loans if the loan-to-value ratio (excluding MIP) equals or exceeds 95 percent AND if the property is in a declining market. A declining market is determined by the appraiser or by the lender.

The letter also limits the loan-to-value for cash-out refinances. The loan-to-value may not exceed 85 percent of the appraiser’s estimate of value if the homeowner pursues a cash-out refinance and the loan balance, excluding the FHA mortgage insurance premium, exceeds $417,000.

Should I buy an REO (bank-owned property)?

In turbulent times I always look for the bright side of things. The bright side to the housing bust is that if you’re a buyer you can find outstanding deals on homes. If you’re looking in the Henderson, Las Vegas Valley area for a home now is a great time to buy. You can purchase a home that was built and sold in 2006 for $320,000 for a cool $220,000. You can even go more extreme than this. My wife and I have always loved real estate and we have spent many a weekend looking at properties. There are several properties on the north-west side of Las Vegas that sold 2 years ago for almost $1,000,000 that are now on the market for $550,000!!

But, you may say, aren’t housing prices going to drop more? Shouldn’t I wait for housing to completely bottom out before buying anything. Sure, you just let me know when that’s going to happen and I’ll be right there with you. The problem with trying to time the market is that typically when the average home buyer realizes it’s the “perfect” time to buy they have already missed the boat. How did I reach this conclusion? Simple, look at the current mess were in. Home buyers that waited for the “perfect” time to buy and purchased a home 2-3 years ago are now really upside down on their homes. Unfortunately, many of these same home buyers listened to inexperienced loan officers who were in the market only to make a buck and opted for a short-term ARM loan. Now payments are doubling and tripling and these same home buyers are upside down, they cannot afford their new adjusted payment and are unable to refinance. Thus, we have the current mess were in.

So, the bottom line as I see it is this; if you can, right now today, purchase a home for $90-$95 per sq ft. that sold just 1-2 years ago for $195-$250 per sq ft what are you waiting for? Rates are still decent and if you’re a full income documentation borrower in Las Vegas with a 580 minimum mid-FICO score and you’re purchase price is under $400,000 you can qualify for an FHA mortgage with only 3% down and secure an excellent 30 year fixed mortgage rate. Then, when the market rebounds you will be laughing all the way to the bank…

IF YOU WOULD LIKE MORE INFORMATION ON PURCHASING AN REO IN THE LAS VEGAS, HENDERSON AREA OR MORE INFORMATION REGARDING LOAN OPTIONS THAT WILL BENEFIT YOUR OVERALL FINANCIAL SITUATION CALL ME DIRECT AT 702.526.3133 OR E-MAIL ME AT MGARNES@GARNESMORTGAGE.COM OR MATT@BUYLASVEGASRE.COM