Did we learn anything? From the Last Bubble that Burst…..

The Las Vegas Home Market is still reeling from “The Real Estate Bubble” and yet we might be repeating history.  Everyone can read Headlines and knows that many indicators are up and creating excitement.  Homebuyers that had to sell short are already back in the home buying process.  Investors have been speculating with Flips and have already seen profits from properties that they purchased right after the bubble burst.  With inventory tightening this is pushing prices up and we again are seeing the “Offer” Frenzy, with multiple offers on much of the new listings on market along with Builder’s starting the lottery system with small phase releases.  We get it, everyone wants the highest and best price.  However, this may be short-lived or will at least stabilize as LPS reports over 1.2 Million homes are in foreclosure, down from 1.5 YoY, this is still a great deal of inventory to absorb along with 900,000 housing starts throughout the nation.  This is further complicated by inflated BPO’s (Broker Price Opinion) as outlined in our previous article, “Are Banks Stealing Homes?”, which will, if allowed to happen, push more homeowners into foreclosure and not allow the market to fully recover prior to over inflated home values as was experienced when no one thought it possible.  As Nike’s controversial new Ad stated, “Winning takes care of Everything,” this may be fine for those on the winning side of this recovery, what about the homeowners left behind with bad loans from predatory lending and exaggerated values resulting in over-leveraged property.  Lets not let this happen again.  Be an informed Seller, Buyer, or Investor, weigh your options, and know what is best for you.  The Neighborhood Home Rescue Workshop Video series has released chapter one with our next Chapter, “Homeowners Options“, being released the first week of April, which will assist you in better understanding the market, what placed us in this circumstance and how a healthy recovery will include help for homeowners impacted by deHouse Bubbleregulation of the Credit Derivatives in the 2000’s.  For notification of our next video release email us at info@platinumelite.com or call 702-869-9999.

The Platinum Elite Group


Legislative BDR Update to Nevada Foreclosure Mediation and Foreclosure Process as of March 18, 2013

In our Blog Article “Boomerang Foreclosures” written February 14th of this year, we reminded everyone to watch the Legislature and what revisions were being proposed or lobbied for by the banking or trustee representatives.  Please find attached links to BDR List and each proposed Bill for either Foreclosure or Foreclosure Mediation;

Be reminded the United Trustee Association (UTA) Lobbyist believes they have favorable representation in the Legislature and will be attempting to slip changes through without drawing attention to what effects homeowner or real estate market in general. Quote by Cheryl Blomstrom, Blomstrom Consulting in her December 2012 E-News Bulletin for the United Trustee Association for Nevada;  “Those of us looking for change did not get the result we wanted, however I remain optimistic…  I still think we can cobble together a coalition of democrats and republicans to get our work done.  UTA members reached out during the campaign process to key candidates and several were elected.  They come into the session with a working knowledge of our industry.

Timeo Danaos et dona ferentes | Beware of Greeks bearing Gifts

To discuss your circumstances or schedule a “Private Consultation” with a Team Member of Platinum Elite Group, contact us at Platinum Elite, info@PlatinumElite.com or call us 702-869-9999.


What sets us at Platinum Elite apart from the rest?

Donald Lainer has developed a strong team in real estate that focuses on service and the clients needs.  First and foremost, we get the job done.  As a team, Platinum Elite Group closed over ninety-one transactions in 2012.  2013 looks to be even stronger.  Already in 2013, the Team has had 11 Listings close, not including the individual team members independent statistics.  In cooperation with Negotiation Service Providers, there has been an additional 13 closings and 12 Short Sale approvals that should close by the end of April.  Donald Lainer, as Team Leader, also does outreach through the Neighborhood Home Rescue Program.  We will be releasing one Video Chapter a month over the next several months, which includes this video from our Youtube Video Channel covering the Las Vegas Market Overview.  Additional Chapters will include:

  • Homeowners Options in Today’s Marketplace
  • Short Sale Options
  • Foreclosure | Mediation | Notice of Default and the process of each
  • Bankruptcy Chapters 7 | 11 and 13
  • Moving Forward with Lending
  • Estate Planning

If you have an immediate need or questions, feel free to contact one of the team for a Private Consultation.

Some segments or chapters are highlighted by guest speakers in each field of expertise.  As a homeowner or investor you need to be informed and knowledgeable in this ever-changing and volatile Real Estate Market.  To sign up for our next Neighborhood Home Rescue Event RSVP at RSVP@PlatinumElite.com or call 702-675-3000.

The Platinum Elite Group is always looking to develop its team with professionals from any field that may be interested in entering the Real Estate Industry.  You may preview our Welcome PowerPoint on Slideshare.com, contact Donald Lainer directly, or any one on the Team and see what we have to offer.  Contact us through our Home Page, info@PlatinumElite.com or by calling 702-869-9999.


Are Banks Stealing Homes from Homeowners? You Decide!


Recently, the President of the GLVAR (Greater Las Vegas Association of Realtors), asked all Realtors to stand-up for what is right. Banks and Servicing Entities are again instructing BPO Agents to not include Foreclosures, REO properties, Short Sales, Properties in poor condition, and are including properties that are too far out from the subject property. They are also using, “As-Is” Language, which is not recognized in the State of Nevada, it should be “As-Disclosed!” Whatever happened to “Fair Market Value!” These same banks would not loan on a property based on the same valuation and criteria they are setting for Short Sales. This is a “To Big to Fail” Mentality and the BPO Agents are agreeing to it to get the work!

I attended a mediation hearing for a client, as a service we provide, where I pointed out to the mediator the flaws in the Bank ordered BPO and the Mediator agreed that the instruction to the BPO Agent was a mis-representation of its true value and marked on the Mediation Resolution Form, “BPO was flawed due to mis-representation.” Thus finding that the Bank was acting in bad faith and therefore the “Certificate of Foreclosure,” will not be issued! You also can act on your clients best interest, as well as on the promptings of the GLVAR President and myself that this must stop! This is Aiding and Abetting Fraud perpetuated by these institutions and by doing nothing we are allowing it and seeing homeowners put out on the street! Remember GLVAR is a Self-Policing Entity, that means All of Us are responsible!  Please start reporting Agents that are following these flawed instructions by Fannie Mae or whichever servicing entity has engaged the BPO Agent. Is the money really worth your license?

Below, see our original article published earlier this year. This issue is going to get worse prior to resolution!

A homeowner wanting to do the right thing in relation to working out here situation with her lender, contacted me for assistance.  She explained to me that she is behind in payments and wanted to know her options, at this time.  Mind you this is a very nice home, in a very nice community, however, like many homeowners in today’s distressed market, her circumstances have caused her to become delinquent.  Wells Fargo, the servicing company for Freddie Mac, instructed her that she would have to consider selling the home as a loan modification was not an option due to insufficient income.  Wells Fargo stated they would do a valuation.  They hired an evaluator to provide a Brokers Price Opinion, known in the industry as a BPO.  This BPO / Appraisal as her lender stated, would be necessary for them to re-entertain a loan modification or to establish a sale amount to cover and include unpaid principal, reinstatement fees, back interest, and legal fees.  The Freddie Mac BPO was valued at around $370,000 dollars.  When the homeowner contacted me to discuss listing the property for sale, as she was instructed by Wells Fargo, I was perplexed by the fact that I could not find any comparable “Model Matches” in the entire community or similar models in the surrounding communities that came anywhere close to the banks valuation.  My valuation was more in the range of $280,000 to $290,000 a variance of over $80,000.  This places the homeowner in a potential Short Sale situation, which we are more than happy to assist with and successfully provide for our clients.  However, with the banks valuation I stated that “this over valuation by the bank has to be explained, as Lender BPO’s are done by other professionals in the area.” When I contacted the Homeowner’s bank, not surprisingly, I was declined a copy of the BPO.  However, the homeowner had the contact information for the evaluating agent.  As this industry is small, I knew the BPO Agent, and contacted him directly. With the right connections I was able to obtain a copy of the BPO results and have a conversation with the evaluating Agent. I was taken back by his “Instructions” from the Servicing Company as guidelines for any Freddie Mac backed home.  He stated, “You would never believe how far I had to go outside of the subject properties’ community to find non-distressed comparables.”  This was his specific instructions by the Servicing Company for Freddie Mac, “No Distressed Properties are to be included in the report!”  Placing the comparable homes completely outside of the community. In fact, he mentioned, “The Comps selected were beyond a mile!”  I ask you, How is this a Comp?! This type of activity is completely putting our market, not only here in Nevada, but across the country in turmoil.

What is the motivation behind inflating the price on a non-performing Asset?

We all know for a fact that a Buyer’s appraiser is not going to go by the same parameters and the home will appraise at a lower market value creating several issues;

  • A valuation dispute with the servicing company
  • Delay in the traditional or short sale process
  • Mis-stated information when this BPO / Appraisal valuation is brought to the table during a homeowner’s mediation
  • Buyers being asked to pay the inflated difference in value

If no resolution, the homeowner is left up a creek without a paddle. Without assistance through a short sale most homeowners inevitably end up in foreclosure.  It would seem Freddie Mac and Fannie Mae have decided NOT to help homeowners in trouble. Is this the result for homeowners trying to do the right thing?

Who benefits from this inflated BPO that created this mess?

Please understand, though overseen by the Treasury Department, Freddie Mac or Fannie Mae have their  own motivations.  When a Freddie Mac and Fannie Mae backed homes revert to them through either foreclosure, deed-in-lieu, or other means, it is then made available through a variety of venues, for instance Fannie Mae’s HomePath Program (select the HomePath “More Info”). This program does not require appraisals for buyers using it, offers incentives, and offers as much as only 3% down assistance. On the surface this is attractive to the buyer, however, with these incentives they can then over value and oversell the property by 10% to 30% over current market value as stated in the “Related Articles” below. By further controlling the number of homes released to the market and constricting inventory, this inevitably drives up a falsely inflated market. “BUYERS BEWARE” you may be closing on upside down property from the get go. Again, I ask where is the Assistance for the Sellers that fell victim to this same behavior and here it is being condoned by an entity with Government oversight?!  Homeowners must no longer allow banks to have it their way.  This type of mentality that “They are To Big to Deal With,” must change.  Be an informed seller, an educated buyer, and a smart investor. The homeowner in this situation, through Network Assistance Program is taking the steps with us to utilize Nevada’s Foreclosure Mediation Program.  Follow us for more information as this scenario unfolds.  If you find this information useful and applicable to you or others close to you, please contact us and / or share through our social media links.

We can assist you in knowing which is your best option in relation to your real estate needs and we want to help you get the assistance you need to maneuver through this unprecedented Real Estate Market.  Please contact anyone of our Team Members here at Platinum Elite by clicking on our Home Page, email us at Info@PlatinumElite.com or call us at 702-869-9999.

Donald Lainer, Team Lead for Prudential’s Platinum Elite Group

Related articles

Predatory Practices still in full swing against Homeowners?

Update to Predatory Practices: The property in question that brought this Nationstar vs. Auction.com issue to light, has now closed! We were able to successfully remove the Auction Task and complete the Close of Escrow last week without participating in their mandatory process described, below. This was done by the cooperation of the Platinum Elite Group Team and Negotiation Service Providers as well as all of those that are involved in any transaction that is distressed.  Thank you to everyone that participated, responded, and commented on this article.  It is the collaboration and activism that empowers us to push through the complexities thrown at us through the Lending servicers and the sometimes unrealistic guidelines set in place by the investors.

We believe in the education of our clients as to all of the options available to them, by doing so, we have found the Homeowner to be able to make the healthiest decisions for themselves and their family while reaching for the best possible outcome. The information we and our network of consultants | contributors provide is at no cost and | or no advance fee consultations.  We can assist you in knowing which is your best option in relation to your real estate needs and we look forward to helping you get the assistance you need to maneuver through this unprecedented Market.  Please contact any Platinum Elite Associate by clicking our HomePage, E-mail us at Info@PlatinumElite.com, or call us at 702-869-9999.  You call also Follow-us on Facebook | Twitter | Linked-In | Trulia | Realtor.com all links are on the right column or our HomePage.

For those of you that missed the original article here you go;

Predatory Practices still in full swing against Homeowners by Nationstar Mortgage Holdings, Inc. (NSM) through the assistance of Auction.com.  Bloomberg Business Week has reported in this linked article, “Nationstar Sued for Selling Loans Rather Than Servicing“. Read the whole article and realize what is not pointed out is “Homeowners” that are in default, are not mentioned.  However, just in the past few days, through the negotiating  company Negotiation Service Providers, LLC, Homeowners who are in default and actively participating in Short Sale Negotiations and under contract with all terms and conditions agreed upon, are being instructed to sign a “Nationstar Mortgage’s Short Sale Terms and Conditions” Agreement.  In this document are 12 Twelve Terms and Conditions, the most alarming are, as stated herein;

Term No. 4: Nationstar Mortgage reserves the right to market your property and to obtain additional offers during the period the offer you have presented is being reviewed. Nationstar Mortgage may retain Auction.com to market your property to obtain these offers.

Can you say, Contractual Interference?  This is going to get ugly before a resolution is evident, this is why we have an attorney assist program.

Term No. 5: You and your real estate agent agree to cooperate with Auction.com during the auction process by, including, but not limited to, making your property available for at least one (1) open house date prior to the auction date and directing any interested parties to submit offers through the auction process.  Etc…….

How do you think the homeowners can place their home back on the market when they already have an Offer and Acceptance (which is a complete full and binding contract), with agreed terms and conditions, and who also has complied with a counter offer from Nationstar.  Now all parties are under a binding contract.  Through proper contract negotiations, you should be able to count on all parties to use fair business practices.  This is illegal from a Nevada Real Estate Practices perspective.

Term No. 7: If Nationstar is able to obtain a higher offer than the currently submitted offer, Nationstar reserves the right to evaluate the new offer instead.

Again, as mentioned above, this is interference with a current and active Real Estate Contract in place between the seller and purchaser. Nationstar and Auction.com are acting as if they already own the property and can dictate the disposition of the negotiations through placing it on Auction for four (4) days. Would someone tell them that they don’t have that right or privilege until they properly foreclose on the property.  Oh, that’s right, that’s the other part of this story that has been left out.  Nationstar has told us, through their negotiator that they have a Trustee Sale Date through CalWestern Trustee Corporation for March 18th, 2013.  According to our affiliate company NSP, LLC, the title company, public records, and Attorney Crystal Eller who conducted her own review, there has been no Notice of Default filed.  In addition, a Certificate for Foreclosure has not been issued as is required in the State of Nevada under the Nevada Foreclosure Mediation Program.  This is covered under the Nevada Statutes since the passage of AB Avoid_Foreclosure_REpage149 in 2009.  This is Predatory and illegal on multiple levels.

Term No. 8: In connection with the auction marketing services provided by Auction.com, a buyer’s premium in an amount not to exceed 5% percent of the winning bid amount shall be added to the winning bid amount to establish a “Total Purchase Price” to any buyer obtained by Auction.com.  The Buyer’s Premium will not apply if the originally submitted offer is the highest bid; however, if the original offer is driven higher by bidding activity, the buyer’s premium will apply to all bidders, including the original buyer.  The buyer premium shall be paid to Auction.com at closing……..

What is touched on in the Bloomberg Article written by David McLaughlin & Jody Shenn, is that Investor’s are appalled that this “Buyer’s Premium” is being shared with Nationstar?!  Is this not a breach of their fiduciary duty to their investors as well to the homeowners involved?

Term No. 12: Nationstar Mortgage will evaluate your current offer or the higher offer and make a firm decision on their acceptability.

It was very well said on by other Short Sale Professionals regarding this issue, quote; “Servicers and Investors are handling Short Sales as they do their REO’s. The obvious issue is that they are not the owner of the property as they are with an REO.  Basically, they are trying to control the listing agreements, list price, marketing, and contracts.”

Understand that Auction.com’s bidding platform, eliminates the Appraisal Process, which detrimentally affects the ability to Short Sale at all, because properties with Freddie Mac, Fannie Mae, and FHA financing will not even meet threshold investor guidelines.

The most frustrating result of this circumstance is that Nationstar is stating in its E-mail to the Homeowners through Negotiation Service Providers, LLC is that in order to continue with The Short Sale Process the document must be signed by the Homeowner and Listing Agent then returned by a specified date or face foreclosure. Quote, “This Program is not Optional.” Again, Predatory and unfair collection practices are being used by Nationstar.

Crystal Eller, who has also been retained by the borrower, plans to contact Nationstar and Auction.com to demand that they cease and desist these Predatorial and unlawful practices against our mutual client and homeowners in the state of Nevada.

If you are experiencing the same difficulties as described in the Bloomberg Business Week Article, this Platinum Elite Blog Page, or with Nationstar, or other Mortgage Servicing entities, please contact our offices and let us see what options are available to you in your situation.

Thank you, Donald Lainer Team Leader for Platinum Elite Group


Rising Interest Rates Curtail Mortgage Activity as Reported by MND Newswire

BY JANN SWANSON of Mortgage News Daily
Mar 13 2013, 8:16AM

Applications for mortgages decreased as mortgage interest rates rose to recent highs during the week ended March 8.  The Mortgage Bankers Association’s (MBA) Market Composite Index, a measure of application volume, was down 4.7 percent on a seasonally adjusted basis from the previous week and 4.0 percent on an unadjusted basis.

The Refinance Index was down 5 percent compared to the week ended March 1 and the refinance share of mortgage activity decreased to 76 percent of total applications from 77 percent, the lowest share of refinancing applications since May 2012.  Thirty percent of those applications were for Home Affordable Mortgage’s (HARP), up from 28 percent the previous week.  The seasonally adjusted Purchase Index was down 3 percent while the unadjusted index was down 1 percent from the prior week and was 9 percent higher than one year earlier.

Read Mortgage News Daily’s entire article as it touches on factors you need to consider in 2013 for your home selling or buying interests.  As the market is in flux with concerns regarding inventory availability, Notice of Default filings on the rise, and HAFA’s expiration for the second consecutive year?!  Donald Lainer, Team Leader for the Platinum Elite Group touches on the Las Vegas Market Conditions in his Neighborhood Home Rescue Workshops.

For questions or to discuss your specific circumstances and needs in detail,  feel free to contact one of our associates at PlatinumElite.com, info@platinumelite.com or by calling 702.869.9999.

House Flipper’s Beware…….

Buyer Beware!

Buyer Beware! (Photo credit: Wikipedia)

With the sudden spike in home prices reported not only in Nevada, around the country, the opportunities for “House Flipping” increase exponentially, especially for those that bought during the lowest point of the market, regardless if you were an investor or home buyer.  Remember, there are restrictions to flipping, not only for a FHA loan, Underwriter‘s for all Lenders for every type of loan instrument have their own internal guidelines that parallel the FHA limitations.

“Read Marcie Geffner’s entire article published by Barkrate.com”

FHA waives rule against house flipping

By Marcie Geffner • Bankrate.com

Anti-flipping waiver has some restrictions

“Buyers should be aware of the FHA’s limits on the anti-flipping rule waiver, which are as follows:

  • The home sale must be at arm’s length, which means there can be no close business or personal relationship between the seller and buyer.
  • If the price that the buyer agrees to pay for the home is more than 20 percent higher than the price the investor paid to purchase it, the sale will be subject to extra scrutiny to ensure that the value hasn’t been inflated.
  • The Home Equity Conversion Mortgage for Purchase program is excluded from the waiver. This program allows older homeowners to combine a reverse mortgage and a home purchase.
  • The 90-day time period might be shorter or longer than 90 calendar days due to the way the start and end dates are determined. The start date occurs when the sale is recorded. The end date occurs when the purchase contract is signed.
  • The waiver began Feb. 1, 2010, and will last one year, unless the FHA extends or withdraws it. The waiver can be withdrawn if there is a significant increase in defaults or mortgage insurance claims on FHA loans that were used to buy flipped homes.

Home buyers typically don’t encounter the anti-flipping rule until they’ve found a house they want to purchase and been told they can’t use a FHA loan unless the investor has owned the home for at least 90 days. Buyers who are concerned about this pitfall should ask when the investor purchased the home, what the sale price was and whether FHA financing will be allowed.”

One point we here at Platinum Elite Group want to point out regarding the “90-Day” Restriction is that, per a Lender, that it is not to close escrow, it is a restriction pertaining to the date of the Offer and Acceptance Agreement or as our source stated, “Date written not closed!”

Remember you can “Follow Us” on Facebook | Twitter | LinkedIn | Trulia | Realtor.com  all links are on our homepage or as widgets on the right column.

We look forward to helping you with your needs in Real Estate.

Related articles

Home prices take biggest leap in 7 years, reported by InMan News

Corelogic: Prices in January up 9.7 percent from a year ago


Inman News®

National home prices in January were up 9.7 percent from a year ago, the biggest annual increase since April 2006, according to data aggregator CoreLogic’s home price index.

The index, which tracks repeat sales of single-family homes, rose 0.7 percent in January from December, marking the 11th consecutive month of month-over-month increases.

“Home prices continued to gather steam across a broad swath of the country in January, continuing the positive trend we saw during most of 2012,” said Anand Nallathambi, president and CEO of CoreLogic, in a statement.

“Many states across the western U.S. and along the East Coast saw average price gains of more than 6 percent, which is likely to boost home sale activity into the first half of 2013,” Nallathambi said.

All U.S. states but Delaware (-0.1 percent) and Illinois (-0.4 percent) saw year-over-year increases in January, according to the index.

Arizona (20.1 percent), Nevada (17.4 percent), Idaho (14.9 percent), California (14.1 percent) and Hawaii (14 percent) topped the chart of states with home price increases in January from a year ago.

As you peruse this article, keep in mind this is a result of the two indicators we Blogged earlier this year, February 14, 2013, the foreclosures being hindered by AB284 & AB300 and the lack of current inventory.  However, in an earlier Blog, RealtyTrac reported over 1100 NOD’s filed in January of this year.  We here at Platinum Elite Group want to make you aware of this fact, prior to you making any listing or selling decisions.  For a property valuation you may contact our office at PlatinumElite.com , email us at info@platinumelite.com or call us at 702-869-9999.


Fannie, Freddie to Create Joint Firm as Reported by the Wall Street Journal

Freddie Mac

Freddie Mac (Photo credit: Wikipedia)


The regulator overseeing Fannie Mae and Freddie Mac announced Monday one of the most concrete efforts to date for building a new infrastructure that could ultimately replace the government-controlled mortgage companies.

Edward DeMarco, acting director of the Federal Housing Finance Agency, said the agency would begin forming a company that would consolidate some of the “back-office” functions currently replicated individually by each firm. The company would have its own chief executive and board and for now would be jointly owned by Fannie and Freddie, Mr. DeMarco said in a speech Monday before the National Association of Business Economics in Washington, …

Maybe something good will come of the Government’s Sequestration?!  Please stay tuned to our Blog for more Details as this NEWS evolves, or you may contact us at PlatinumElite.com or call us at 702-869-9999 to discuss how this may affect your Home or current Listing with us.