Las Vegas Real Estate Blog

What is 'Buy & Bail" practice? Is the result of buying a new home with the intention of bailing on the old one... It is considered mortgage fraud.

With the home price falling and inability to pay heir "old mortgage" some owners find an alternative... Buy a new home with the new drastically reduced price and bail out from the old home. A home bought few years ago in the range of $500.000 today is worth little over $250.000. The home owner is locked into a home mortgage that no longer can afford and more importantly doesn't reflect the true market value. In Las Vegas this practice is quite spread.

NEWS - LAS VEGAS REAL ESTATE UPDATE - BUY & BAIL

To turn off the sound please click on - II - above

"Buy & Bail" practice? ... It is considered mortgage fraud.

However, it does not change the fact that Buy and Bail constitutes mortgage fraud and is against the law. Read more >>> What is Wrong With Buy and Bail? By Elizabeth Weintraub, About.com

As a result of buy and bail practices, Fannie Mae guidelines now require buyers to qualify for mortgages on both homes at loan inception, unless the existing home has plenty of equity. That's because a home owner with plenty of equity would be foolish to walk away from it.

Read more>>> FHA Moves to Prevent 'Buy and Bail' September 22, 2008 By MortgageDaily.com staff

• All new FHA loan submissions must be considered excluding any rental income on the current residence.

"The exclusion of rental income from property being vacated is being instituted on a temporary basis while FHA further analyzes this situation to determine whether permanent measures may need to be taken," the letter said. "Although the property being vacated will not have a mortgage insured by FHA, surrounding properties may and, thus, FHA may be indirectly negatively affected should that property result in a foreclosure."

• Borrower can make payments on the full debt service of both mortgages.

"This will assure that a homeowner either has sufficient income to make both mortgage payments without any rental income or has an equity position not likely to result in defaulting on the mortgage on the property being vacated,"
 

The government agrees. New rules will require future buy-and-bail suspects to show real income to cover payments on both homes. Foreclosures also sting more than they used to. Defaulters can't apply for a mortgage for five years. It used to be four.

Las Vegas Casino's stocks fall ... anxiety about the softening economy! Las Vegas Casino's industry started to feel the anxiety over the declining economy and continuously down-sliding profits.

MGM Mirage told its workers Monday that this year's cash bonus program will be eliminated as direct result of lacking to achieve a certain level of profitability.

"We feel it is only fair to inform employees of this situation as early as possible, rather than wait until the end of the year and the point when they would normally receive a regular cash bonus," Absher said.

For Las Vegas the Casinos, Gambling and Entertainment industry is the major factor in the local economy. Any sign of slowing down or declining in profits is a great concern at all levels... but MGM workers were the first to take the blow... It the past it was a happy tradition in MGM company for receiving the bonus checks at the end of the year.

Interesting to mention: MGM Mirage Chairman and Chief Executive Officer Terry Lanni earned $12.7 million in total compensation in 2007,($2 million out of the total represents his salary). But he collected $10.7 million in stock appreciation rights award, nonequity incentive compensation and other compensation... A bonus was not included.

MGM Mirage has been hit by declining revenues and declining net income in 2008.

According to "Review Journal" Oct. 24, 2008 : " Shares of MGM Mirage slid $1.59, or 12.78 percent, to close at $10.85. The stock reached a more than seven-year low of $9.75 earlier in the session. The company's stock price has fallen from a 52-week high of $95.66 on Oct. 29 to Monday's close of $13.83. It fell $1.17, or 7.8 percent, Monday on the New York Stock Exchange." Read more>>>

On an other note check the gaming industry contribution to the Presidential Campaign for McCain's...

• MGM Mirage Chairman and Chief Executive Officer Terry Lanni, collected at least $500,000 for the campaign, according to OpenSecrets.org
• Wynn Resorts Chairman and CEO Steve Wynn has raised between $250,000 and $500,000
• Las Vegas Sands Corp. Chairman and CEO Sheldon Adelson and company President Bill Weidner have each raised between $100,000 and $250,000

Read more >>> GAMING AND THE PRESIDENTIAL ELECTION

These are the Hollywood's young and famous who left behind the famous Sunset Blvd nightlife to find more refined and exciting places on Las Vegas Strip. But this is not only interest they have, more and more are buying real estate in the hottest high rise condominiums on the Strip. (and elsewhere in Vegas). Las Vegas's new Panorama Towers have become home to quite a list of celebrities: Pamela Anderson and Toby McGuire, Leonardo DiCaprio had purchased not one, but two condos in Panorama Towers ( He purchased two adjacent condos -on the 33 floor- which he plans to join to make one super condo), Andrew Sasson and many others.

The list of celebrities who for the past few years made Las Vegas one of their homes and where they hangout enjoying all the city can offer is long... I only painted it with a light brush. It's been a long road - from the early years of Las Vegas - celebrities like: Siegal, Howard Hughes, Liberace, Frank Sinatra, Rat Pack, Elvis Presley, Wayne Newton, The Beatles, Siegfried & Roy, Barbra Streisand... They all left their mark of excellence and build the fame of this city.

Las Vegas is back on the map and hipper than ever.

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There is the word; "Dress for success"... and going even farther there is lot of truth in using the fashion to build someones appearance of success, accentuate its physical qualities and bust its personal confidence. In many ways the fashion is an effective, powerful tool to subtly make personal, social and political statements.

USA TODAY's article "Style becomes a real issue in '08 presidential race." raise the issue of politics and fashion. In all honesty, what have we come to? When did a presidential candidate start becoming a fashion icon rather than a political figure (Life, Cover story, Oct. 15)?

Arianna Huffington, writing in October's Harper's Bazaar says voters want sexiness and good looks to "go hand in hand with empathy, compassion and caring."

"This is an election, maybe the first one since Kennedy-Nixon, where appearance really does matter," says Tom Kolovos, a Chicago-based style-and-image consultant...

"I used to be hip. I can't be hip anymore. I'm running for president,"... Obama told the Vibe magazine. He has to be careful about what his clothes telegraph. When the magazine put him on its September cover, he was offered hip-hop duds for the photo shoot. He declined.

In this extraordinary and heated presidential campaign, every detail counts and so it does for the average "Joe" caught in the political fewer... In case you haven’t heard yet, even politically charged t-shirts can be considered high fashion...specially in the hit of a political campaign.

Blue State, Red State. Win State, Lose State... Whatever States... Political tension translates into a trend of hot political "correct - incorrect" fashion expression.

The clothing fashion can make a powerful statement about who you are and were are you standing in the political environment... Speaks volumes! Have no doubt about someones convictions, emotions and affiliations by the aperals they chose to wear.

Either you choose the Obama's T Short...
	Or Obama's bag...
Even the Sarah - McCain's T Short...
Or John's bag...
	Or just try to walk into Obama's shoes!!!... As stupid as this may sound, I believe that Barack Obama's new shoes will greatly reach to teens.

Barack Obama's shoe grabs EVEN teens' attention...

OK!... You made your point!...