http://markp.cbvegas.com/blog/archive_201003/sort_entrydatetime-desc/ Coldwell Banker Premier Realty has partnered with one of the most dynamic, aggressive law firms in Las Vegas to assure our clients are protected during the Short Sale process. Yesterday, it was announced that Bank of America will cut loan principal for some customers. Below is a blog entry written by Black & Lobello's own Tisha Black-Chernine, Esq. Reposted with permission.Bank of America Will Cut Loan Principal for Some CustomersOn March 25, 2010, in Mortgage, Real Estate, by blacklobellolaw Bank of America announced on March 25, 2010 that it will implement a principal forgiveness program to modify underwater loans.   Bank of America is specifically targeting certain, subprime and adjustable-rate mortgages (ARMs) qualifying for its National Homeownership Retention Program (NHRP), Pay-Option ARMs, and prime two-year hybrid ARMs.  The program is limited to Bank of America customers who are at least 60 days overdue on payments, can demonstrate a financial hardship prevents them from making payments at the current level, and whose loan balance is at least 120 percent of the estimated home value. Under the earned-principal forgiveness approach, qualifying homeowners will be offered an interest-free forbearance of principal that they can turn into forgiven principal over five years, resulting in a maximum 30 percent decrease in the loan principal balance.  More specifically, in each of the first five years, up to 30 percent of the forborne amount will be forgiven annually for borrowers that remain in good standing on their mortgage payments.  For the first three years, forgiveness installments will be set at the 20 percent level.  And in the fourth and fifth years, the amount of forgiveness will be dependent upon the updated value of the property.  This will ensure that the loan-to-value ratio (LTV) will not be reduced below 100 percent through principal forgiveness.Bank of America estimates that 45,000 customers will qualify for this relief program. Tisha Black-Chernine, Esq. http://markp.cbvegas.com/blog/845/bank-of-america-cuts-principal-for-some-customers/ Fri, 26 Mar 2010 01:09:20 -0800 CIRE Magazine recently did a Q & A with Ron Opfer, Director of Special Asset Solutions at Coldwell Banker Premier Realty and a recipient of ESRI's CCIM grant. Opfer discusses our use of ESRI's arcmap software as well as our data collection efforts. We present this information graphically so that bank clients can fully understand the economic and property landscape surrounding the assets that they hold.Click here to read the article.  http://markp.cbvegas.com/blog/828/knowing-the-market/ Tue, 16 Mar 2010 12:13:42 -0800 For great information regarding Las Vegas Short Sales, please visit:http://blacklobellolawblog.com/ http://markp.cbvegas.com/blog/824/our-favorite-blog/ Mon, 15 Mar 2010 03:54:17 -0800 Today there was an interesting article in the Wall Street Journal regarding possible strengthening in mark-to-market rules. Banks have often been opposed to these rules because they are forced to write down values in times when they believe markets to be irrational, when investors flee a market based on fear. Conversely, banks may be holding loans at artificially high-values. Investors are tired of this, knowing that banks are holding some loans in la la land and are not moving forward in moving these loans and ultimately the collateral, like commercial buildings, to market. Many investors might be happy to see banks looking at their portfolios more realistically. On the other hand, can many banks find the provisions to offset the losses?For the WSJ article, click here.   http://markp.cbvegas.com/blog/823/mark-to-market/ Mon, 15 Mar 2010 01:50:36 -0800 Ernst & Young recently released its Global Real Estate Investment Trust Report 2010: Against all odds. For U.S REITs, the report notes several key components that factor into their outlook. Firstly, after a horrible 2008 and a choppy 2009, REITs have been able to raise significant capital, mostly through the sale of shares. Another aspect of this sector is deleveraging, although many REITs still have significant debt. I would guess that many of these REITs will have to pay down some more of this debt before they can't begin aquiring more property. Ernst & Young believes that in the 1990's commercial real estate had an excess supply problem. That is, myopic builders overestimated demand for commercial properties and way to much space was available based on current demand. In the current period, demand simply evaporated, causing an exodus. We saw this in our local market, Las Vegas as well. Not long ago we had record low vacancies in industrial and retail, almost to the point where only the obsolete space was left (one could argue that office was overbuilt). Now we have high vacancies in each main sector, office, retail and industrial. Ernst & Young believes that with a rebound in the U.S economy, absorption should be absorbed quickly. I think it will take a fairly broad national recovery before we see significant absorption in the Las Vegas Valley.The next big feature of REITs today is the targeting of distressed assets, although some companies have been hesitant to purchase other firms with "legacy" issues like large debt obligations. In addition, banks have been slow to write-down values and dispossess themselves of commercial assets. Its not always that they don't want to, it is that they just can't. it will hammer their ratios too much and they need to raise capital to offset the loss. Nevertheless, M & A activity may increase as another avenue to acquire assets, along the lines of Simon Property Group's attempt to acquire General Growth Properities.It's not all about distressed assets however, as performing properties are sought as well. Even these appear to be on sale, especially by foreign investors as noted by Reuters:We see a pretty significant amount of interest by foreign capital into US real estate -- not necessarily foreign REITs, but private equity, sovereign wealth funds," Roth said. "There is a general belief that after the significant decline in values that now is the time if you have capital to (chase) risk-adjusted returns."  (Reuters: Global REIT values to grow in 2010-Ernst & Young, March 2010).So far in Q1, we've seen a lot of genuine interest in assets in the Las Vegas Valley, not so much by REITs (although General Growth has a lot of exposure here) but by foriegn investors big and small, as well as by hedge funds and schooled, large investors raising money in private channels. If Q1 is any indicator for the rest of 2010, its going to be an interesting year.For the Ernst & Young Report Click Here For the Reuters article Click Here http://markp.cbvegas.com/blog/810/expansion-in-reit-values-expected/ Fri, 12 Mar 2010 08:54:33 -0800