Thursday, December 16, 2010

2000-2010...Some interesting facts about this decade.

This has been a decade that will go down in history as one of the most devastating ever. Like most decades it has had its share of tragedy, growth, war, financial ups and downs and creative genius. UNLIKE most decades though, this has had all of those normal peaks and valleys, TO THE TENTH POWER! We have all witnessed the myriad of maladies that have encumbered our nation over the past few years and the vast casualties we have suffered in two wars and several attacks here and overseas so there is no need to dwell on them. And we have all witnessed the creative genius that has restored our ranking as a nation in the medical, science, electronics and social forefronts. Needless to say, this decade will be remembered by all and missed by few. I for one will be elated to put this decade behind me.
Here are just a few noteworthy changes...

Price of gas in year 2000- $1.48/gal,  year 2010-$3.09/gal...more than doubled

Stamped letters mailed year 2000- 55.1 billion, year 2010- 29.8 billion (45% decrease)

Unemployment year 2000-4%, year 2010- 9.6% (140% increase)

Price of gold year 2000-$284 per oz. year 2010- $1400 per oz. (380% increase) I should have listened.

FaceBook users year 2000-0, year 2004-1 million, year 2010-500 Million users

Homeownership rate year 2000-67.1%, Homeownership rate 2004-69%, Homeownership rate year 2010-

National debt year 2000-$5.7 Trillion, year 2010-$14 Trillion (142% increase)

Dow Jones Industrial year 2000-10,940, year 2002-7700, year 2007-14,000, year 2008-6,500, year 2010-11, 500.

Mortgage interest rates year 2000-8% average for the year, year 2010- 4.85% average for the year.

IPod's sold year 2002-381,000, year 2010 52.3Million (sold my Apple shares @$70.00/share)

And last...Number of blogs year 2004-3 Million, year 2010....130 Million

I look forward to the next decade with great optimism. America and many other nations have endured one of the hardest decades in history. If you didn't lose anything, then you had nothing to lose. We have all learned many valuable lessons. Now let's invest those lessons in the next decade and make it the best one yet.
Happy Holidays and Happy new decade!

Wednesday, November 10, 2010


If you are on the internet, read news magazines or the paper or watch any T.V., you have seen the "everyone has bad credit or will have bad credit" headlines. This recession has taken it's toll on everyone from our own Uncle Sam to the college student trying to pay their student loan. And, when the bills don't get paid, the credit takes a hit. In the case of a foreclosure, bankruptcy or repossession of some sort, it can crush your credit report like a sledge hammer to a tin can. With approximately 60 percent of home purchases being financed, credit repair companies will be very busy for at least the next five years.

Here are 25 "crazy credit facts".

1) The average credit card debt per household with credit card debt: $15,788. This is one catagory, it's not good to be above average.

2) 609.8 million credit cards are held by U.S. consumers (Source Fed Reserve Bank of Boston Feb 2010)

3) Average APR on new credit card offer: 14.35 percent (Source: CreditCards.comWeekly Rate report, Aug. 25, 2010.)

4) U.S. credit card default rate: 13.01 percent. (Source: Fitch Ratings, April 2010) Delinquency trending up.

5) Visa credit: 270.1 million cards out there, down 11 percent (Source:

6) Visa debit: 382 million out, up 18 percent (Source:

7) MasterCard credit: 203 million cards out, down 22 percent (Source: Both Visa and master card are way down in issuing new credit, a sign of much tighter lending policies.

8) MasterCard debit: 125 million, up 1 percent (Source:

9) American Express credit: 48.9 million, down 9 percent (Source:

10) Discover credit: 54.4 million, down 6 percent (Source:

11) Eighty percent of consumers currently own a debit card, compared to 78 percent who own a credit card and 17 who own a prepaid card. (Source: “The Survey of Consumer Payment Choice,” Federal Reserve Bank of Boston, January 2010)

12) In 2006, the United States Census Bureau determined that there were nearly 1.5 billion credit cards in use in the U.S. A stack of all those credit cards would reach more than 70 miles into space – and be almost as tall as 13 Mount Everests. (Source: NY Times, Feb. 23, 2009) Yeah, that’s more than a few!

13) Eighty-four percent of the student population overall have credit cards, an increase of approximately 11 percent since the fall of 2004. (Source: Sallie Mae, “How Undergraduate Students Use Credit Cards,” April 2009)

14) 76 percent of undergraduates have credit cards, and the average undergrad has $2,200 in credit card. Additionally, they will amass almost $20,000 in student debt. (Source: Nellie Mae, “Undergraduate Students and Credit Cards in 2004: An Analysis of Usage Rates and Trends”) This is a scary number! Keep in mind this is average, almost 8% have over $7100 in credit card debt

15) Credit card usage fell dramatically from 2007 to 2008, with only 64 percent of consumers indicating they used a credit card in the month preceding the September 2008 survey, compared to 87 percent of consumers in 2007 — a 23 percentage point decline. (Source: Javelin, “Credit Card Spending Declines” study, March 2009)

16) Residents of Jackson, Miss., use the highest percentage of their credit limit. (Source: Men’s Health magazine’s personal debt survey, July 2008)

17) Lincoln, Neb., residents use the lowest percentage of their credit limit. (Source: Men’s Health magazine’s personal debt survey, July 2008)

18) Total bankruptcy filings in 2009 reached 1.4 million, up from 1.09 million in 2008. The vast majority were personal bankruptcies — Chapter 7 and Chapter 13. Business bankruptcies made up 6 percent of all filings. (Source: AACER, the American Bankruptcy Institute, January 2010) A 28% jump in one year!

19) Nevada surpassed Tennessee atop the listing of bankruptcies per capita, with more than 11 bankruptcies filed for every 1,000 residents. Tennessee and Georgia took the second and third slots behind the Silver State. Compared to 2009 third-quarter data, the biggest mover was Arizona, which rose six spots from No. 21 to No. 15. At the other end of the scale is Alaska, which had only 1.4 bankruptcy per capita, meaning the average Nevadan was eight times more likely to file bankruptcy than the average Alaskan. (Source: AACER, the American Bankruptcy Institute, January 2010)

20) From Q3 2008 to Q1 2009, the average TransUnion credit score fell 6 points to 651, the credit bureau says. Scores fell even further in the some economically challenged states: California fell 10 points and Arizona, 11. (Source:, April 2009) In one quarter and this trend continues!

21) On average, today’s consumer has a total of 13 credit obligations on record at a credit bureau. These include credit cards (such as department store charge cards, gas cards, and bank cards) and installment loans (auto loans, mortgage loans, student loans, etc.). Not included are savings and checking accounts (typically not reported to a credit bureau). Of these 13 credit obligations, nine are likely to be credit cards and four are likely to be installment loans. (Source:

22) Corpus Christi, Texas, residents have America’s worst credit scores. (Source: Men’s Health magazine’s personal debt survey, July 2008)

23) Sioux Falls, S.D., boasts America’s best credit scores. (Source: Men’s Health magazine’s personal debt survey, July 2008)

24) Miami residents are the biggest overspenders, one study says. The 50 largest U.S. metropolitan areas were ranked in terms of percent of median yearly household income owed to credit card companies and Miami residents owed 22.61 percent. Tampa (17.1 percent) and Los Angeles (16.81 percent) came in second and third, respectively. (Source:, Equifax and US Census Bureau, April 2009)

25) What credit score do I need to get a mortgage loan? This is one of the most common questions we have received from home buyers over the years. New data released by the Federal Housing Finance Agency revealed some interesting trends about credit scores and mortgage loans.
According to the report, 84% of mortgage loans purchased by Freddie Mac and Fannie Mae came from borrowers with credit scores of 660 or above. The data pertained to single-family mortgage loans acquired by Freddie Mac and Fannie Mae between 2001 and 2008. Fannie and Freddie are the government-sponsored enterprises that purchase mortgage loans from direct lenders and sell them to investors.
Only 5% of “Enterprise-acquired” mortgages came from borrowers with credit scores below 620. What does this mean?
Credit Scores are king! If your credit scores are low it’s time to do something about it!
Visit my website: for more credit repair information.
Or call: Dan DeNuccio- 702-592-4663

 Facts provided by:

Tuesday, August 24, 2010


For more infomation on Short Sales visit my website:

Wednesday, August 18, 2010


A friend of mine asked me "When do you think the right time to buy a home in Las Vegas would be?"I have been a real estate broker in Las Vegas for 26 years now and if I had a dollar for everytime I have been asked that question, I would be happily retired, sitting on a beach on my own island somewhere in the Pacific counting coconuts and watching the tide roll in and out while sipping on one of those goofy drinks with the mini umbrellas. "No really", he says, "you must know when the perfect time will be?" "Are prices going to drop more, are the interest rates going to drop more?" Should I wait until the government gives me the down payment and offers to make my monthly payments for the next five years, oh and maybe if I time it perfectly, I can get a home the day the market bottoms out and lock in my interest rate an hour before the rates start to climb again...Riiight.
Save yourself some major stress and anxiety and buy a home when you WANT to buy a home. That is, if you are financially ready, and have a legitimate reason to either move or own an investment home.
Too many would-be buyers get caught up in the "Time the market" syndrome. About ten years ago I came to the conclusion that I was not a clairvoyant and didn't know one either so I came up with a list of the signs that will usually tell you when the time is right to buy-NOT to be confused with timing the market, just paying attention to the proper indicators:

1. Home prices have dropped significantly over the past 12-36 months. Do the research YOURSELF.Just reading a few articles on the Internet does not qualify as research. If you are interested in a specific area, say the Summerlin or Green Valley area, ask a very qualified Realtor to provide you with the most recent data that would indicate the price adjustments over the last 12-24 months. Talk to qualified active appraisers about their opinion of those areas. Make sure the agent and appraiser you talk to has been very active in the market for at least the past few years, preferably more.
2. The inventory of homes available indicate that it is a buyers market. That would be at least a minimum of a 4-5 month supply. Again, your real estate professional should be able to tell you how many months supply of homes there is in the area you are looking as well as the overall market. If not, there are a few good sites that I will forward to you that are accurate and informative.
3. The interest rates to finance a home are below 7%. Yes, I said 7%! Currently they are in the 4.5%  range, the lowest I have ever seen in my 26 years and the lowest overall in the last 40 years!
We have become so spoiled by the low interest rates over the past ten years (almost all below 7%) that we have come to expect the rates to stay there. And if they don't, it sends a shock wave to the market and buyers start waiting again. If the rates are below 7%  and the average home price is under $170,000, that is the tipping point of where it is cheaper to buy vs. rent.
4. The tax incentives are still in place. Yes, Uncle Sam has for decades and still to this day, and hopefully for future decades, offers the incentive of the interest deduction when you purchase a home with the banks money, not to mention the writes-offs for improvements, and other expenses. Investors are entitled to excellent incentives as well. Consult your tax advisor for all the details and you should find that it is far more benificial to own than to rent when it comes to paying taxes.

Of course, there are more signs to watch such as the improvements and growth in the area, demand for the area and overall economic indicaters, but those are the most recognizable signs to watch.
And if I am properly informed, I believe all four of the above signs are now quite noticable in Las Vegas.
For my friend that asked me that question, I hope this helps.

Tuesday, August 10, 2010


Click on the above chart to enlarge
VERY IMPORTANT: Before you decide to Short Sale, Cash for Keys, or give your home up to Foreclosure, check with your CPA or tax advisor. Attorneys can also be helpful but some tend to lean towards Bankruptcy too often. 

Tuesday, August 3, 2010

Short Sales...Is it the way to go?

Most states in the U.S. have been utilizing the short sale process. A brief explanation would be as follows: Mr. and Mrs. Upsidedown Homeowner (they owe more on the home than it is worth) are put in a position that they must sell their home. The MUST part of that is important because if the bank that holds the mortgage on their home is to agree to the short sale, the homeowners must have some sort of a hardship. The typical hardships that would qualify would be:
1. Divorce
2. Loss of employment
3. Reduction of income or increase in expenses
4. A health issue that creates loss of income or increased expenses
5. Job transfer forcing a move

Wanting to sell your primary or investment property just because you are upside down and it's having an adverse affect on your portfolio, is not a good enough reason. You must be able to prove that you have at least one applicable hardship. The most common one today is loss of or a decline in income. Most of us have suffered a decrease in pay, reduced work hours or reduction in benefits resulting in increased expenses.
The average short sale is completed in approximately 90 days now. Most banks have replenished their staff and assembled a platform for managing the short sale process so they are closing much faster now.
As a homeowner, you should consider the short sale the same type of sale as a normal sale with the exception of the bank having to approve the sale and your credit being downgraded. The home should be maintained the same as you have been, or better since your are selling it, and all of the normal selling rules such as staging the home, keeping the utilities on, and making repairs as necessary DO apply. If any agent or want-to-be agent tells you different, they are wrong. Part of the purpose of the banks accepting the short sales is that they expect the homeowner to stay in the home and maintain it while it is on the market and in escrow. Therefore, the home will sell for more because of the condition, the bank gets more money and they mitigate their loss.
The end result for Mr. and Mrs. Upsidedown Homeowner could be any or all of the following:

1. Best case scenario: No cash contribution, no promissory note to the bank, and the bank agrees not to pursue Mr. and Mrs. Homeowner for a deficiency judgement.
2. Homeowners sign a promissory note to the bank for a fraction of the unpaid debt.
3. Homeowners have to make a cash contribution at close of escrow to the bank.
4. Both 2 and 3.
5. No cash contribution, no promissory note but the bank (or banks) reserve the right to pursue the homeowner for a deficiency judgement for the deficiency.

There are other options of course but this is only a blog. There are obvious credit ramifications. In most cases, Mr. and Mrs. Upsidedown Homeowner will succeed in the short sale and have the underwater home behind them and start rebuilding their credit as soon as it closes. They should be able to finance a home within two years after the short sale closes, as long as the rest of the credit is maintained.
For more detailed information contact:
Dan DeNuccio
Prudential Americana Group Realtors