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Foreclosures in the real estate industry in Fernley and Fallon are hurting many individuals, yet at the same time, they are benefiting other people.
Peggy Foley, owner of Foley Realty in Fernley, said her office is seeing more activity of people looking for housing deals, and there are many good deals out there. She said the reasoning for these investors are foreclosed homes selling below market value.
The January flood, she said, only had an impact because of how it was reported, mentioning the majority of the city was not affected. Foley said her family on the East Coast called, thinking she may have been washed out.
“It landed on the lowest spots,” she said.
Judy Thompson, owner of Green Valley Realty in Fallon, agreed with Foley, mentioning her office has not had one foreclosure in Fernley that was impacted by the flood.
Of the 361 homes for sale in Fernley, 135 are foreclosures, and another 73 are on the short list. A short list is when a homeowner works out an agreement with the lender to accept for what the home sells and allows the owner to put the property on the market, rather than foreclose.
Foley said the real estate market might be down, but she thinks it will rebound in time, and investors are banking on this.
“As a normal statement, things don’t normally stay in a recessed state,” she said, adding in her 35 years in the industry, she has seen five recessions, and each one rebounded nicely.
Numerous buyers, who received previous loans from lenders, could not secure the same offers now, Foley said, mentioning there were home purchases buyers could not afford. She said lenders and real estate agents no longer offer loans on homes to no-income qualifiers.
“Those are pretty much gone from the market,” Foley said. “You have to legitimately qualify.”
She added buyers looking at purchasing homes are not ones having trouble paying mortgages. Long-term investors, she said, are banking on the market rebounding quickly.
Fallon real estate agents are seeing a spike in foreclosures but not at the same rate as most communities.
Bob Getto, president of the Northern Nevada Regional Multiple Listing Service board, said when taking all types of residential units into the equation, there are 265 homes on the market, which is 20 to 30 percent higher than normal.
Of those homes, 23 are bank owned or have been foreclosed. Normally five to six homes on the local market are under foreclosure. In addition, Getto said, another 13 homes are on the short list.
When discussing the short list, Getto said there are times when lenders make less money on homes going into foreclosure. However, there are other times when lenders would earn more by foreclosing.
He expects the downturn in the housing market to last through 2010, but he added it is a great time to purchase homes for people with good credit because of the large supply.
“We do have an over supply of inventory,” he said.
The agent said the real estate industry in Churchill County relied on people and retirees moving and purchasing homes in the area but they are unable to do this because their current homes are not selling.
Getto said a few years ago it was easy for home buyers to secure loans — many who should have never received them and lenders have taken note of what happened.
“Lenders have overcorrected or overacted, in my opinion,” he said.
The Fallon real estate agent said there are ups and downs in the industry, but thinks this downturn is a little different.
Lenders, he said, are more cautious on who they approve and for what amounts.
In urban settings, real estate agents require clients receive pre-approved status before showing homes. In rural communities, like Fallon, the practice was to find homes for prospects before getting approved.
He said it is disappointing for families to find homes they want, only to find out lenders will not give them a loan. He added agents should insist clients get pre-qualified to make the home-buying experience more satisfying.
Thompson said most people walk away from a home when they cannot sell it for what is owed. She said there were many investment properties in Fernley a few years ago, and many people no longer can afford them or sell them for what was paid.
She said the Fallon market is much stronger, partly because Fernley is a bedroom community to Reno where residents could move there and investment properties not being worth as much.
Thompson also said Fallon real estate agents care about clients and will not sell them an unaffordable home.
“There are a lot of great realtors in this town that care about their buyers,” she said, but added layoffs and people losing their jobs are unforeseens that affects mortgage numbers a little.
Peggy Foley, owner of Foley Realty in Fernley, said her office is seeing more activity of people looking for housing deals, and there are many good deals out there. She said the reasoning for these investors are foreclosed homes selling below market value.
The January flood, she said, only had an impact because of how it was reported, mentioning the majority of the city was not affected. Foley said her family on the East Coast called, thinking she may have been washed out.
“It landed on the lowest spots,” she said.
Judy Thompson, owner of Green Valley Realty in Fallon, agreed with Foley, mentioning her office has not had one foreclosure in Fernley that was impacted by the flood.
Of the 361 homes for sale in Fernley, 135 are foreclosures, and another 73 are on the short list. A short list is when a homeowner works out an agreement with the lender to accept for what the home sells and allows the owner to put the property on the market, rather than foreclose.
Foley said the real estate market might be down, but she thinks it will rebound in time, and investors are banking on this.
“As a normal statement, things don’t normally stay in a recessed state,” she said, adding in her 35 years in the industry, she has seen five recessions, and each one rebounded nicely.
Numerous buyers, who received previous loans from lenders, could not secure the same offers now, Foley said, mentioning there were home purchases buyers could not afford. She said lenders and real estate agents no longer offer loans on homes to no-income qualifiers.
“Those are pretty much gone from the market,” Foley said. “You have to legitimately qualify.”
She added buyers looking at purchasing homes are not ones having trouble paying mortgages. Long-term investors, she said, are banking on the market rebounding quickly.
Fallon real estate agents are seeing a spike in foreclosures but not at the same rate as most communities.
Bob Getto, president of the Northern Nevada Regional Multiple Listing Service board, said when taking all types of residential units into the equation, there are 265 homes on the market, which is 20 to 30 percent higher than normal.
Of those homes, 23 are bank owned or have been foreclosed. Normally five to six homes on the local market are under foreclosure. In addition, Getto said, another 13 homes are on the short list.
When discussing the short list, Getto said there are times when lenders make less money on homes going into foreclosure. However, there are other times when lenders would earn more by foreclosing.
He expects the downturn in the housing market to last through 2010, but he added it is a great time to purchase homes for people with good credit because of the large supply.
“We do have an over supply of inventory,” he said.
The agent said the real estate industry in Churchill County relied on people and retirees moving and purchasing homes in the area but they are unable to do this because their current homes are not selling.
Getto said a few years ago it was easy for home buyers to secure loans — many who should have never received them and lenders have taken note of what happened.
“Lenders have overcorrected or overacted, in my opinion,” he said.
The Fallon real estate agent said there are ups and downs in the industry, but thinks this downturn is a little different.
Lenders, he said, are more cautious on who they approve and for what amounts.
In urban settings, real estate agents require clients receive pre-approved status before showing homes. In rural communities, like Fallon, the practice was to find homes for prospects before getting approved.
He said it is disappointing for families to find homes they want, only to find out lenders will not give them a loan. He added agents should insist clients get pre-qualified to make the home-buying experience more satisfying.
Thompson said most people walk away from a home when they cannot sell it for what is owed. She said there were many investment properties in Fernley a few years ago, and many people no longer can afford them or sell them for what was paid.
She said the Fallon market is much stronger, partly because Fernley is a bedroom community to Reno where residents could move there and investment properties not being worth as much.
Thompson also said Fallon real estate agents care about clients and will not sell them an unaffordable home.
“There are a lot of great realtors in this town that care about their buyers,” she said, but added layoffs and people losing their jobs are unforeseens that affects mortgage numbers a little.
