The McCollough Group www.tmglv.com

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The Las Vegas Market is down over 60% from the highs of 2005.
 
Chances are if you purchased a home or Cash out Refinaced your home after 2003 you owe more than your home is worth. 
 
 
many of us owe 100k more than our home is worth.
 
Brent White, a University of Arizona law professor, notes that a family who bought a three-bedroom home in Salinas, Calif.(similarly distressed like Las Vegas), at the market top in 2006, with no down payment (then a common-enough occurrence), could theoretically have to wait 60 years to recover their equity.
 
Whether its 15 , 60 years or a lifetime- its not going to be tommorow or anytime soon to get back the equity.
 
Many are going through difficult times whether it be from loss of income or increased mortgage payments-
and there are many who are still scraping by paying their mortgages as agreed.
 
With this information -What do you do? 
 
There are basically six options:
  1. Pay your mortgage as agreed(possibly throwing away bad money after bad-hoping for a quick turnaround)
  2. Try to get a loan modification(easier said than done but possible-however over 60% of loan mods re-dfault in first year due to lack of principle reduction)
  3. Try to do a short sale(Becoming commonplace- and though still lengthy and challenging- Shorts Sales are the new Norm)
  4. Rent your home out to a tenant( you will most likely not be able to cover the monthly mortgage with the rent)
  5. Walk away from your home(a Option for some -though there is still some negative social stigma attached,however the negative stigma is on the severe decrease.
  6. File Bankruptcy
 
Today the Goverment is putting increased pressure on the lenders to help distressed homeowners.
What this is doing is giving many homeowners better options that they had before.
  • Though not easy- better Loan Modifications are becoming more common. 
  • Short Sales are becoming streamlined and easier to get approved by the lenders.
In 2008 valley wide about 8 % of Short Sales were successful
In 2009 this increased to 42% (Our Success rate is almost 80%)
In 2010 the Success rate will increase with the Goverments backing!
 
Let the McCollough Group discuss with you ALL the information available and help you, your family and anyone you may know make the right decision in these changing times. 
We are here to help!
 
 
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