Equity Problems
Many news reports have shown that the Las Vegas housing market is softening. This is bad news for the local consumer because now more exotic loans will have to be used in order for local consumers to purchase homes.
This is not sitting well with those looking to purchase new Las Vegas homes because homeowners know that they will owe more on mortgages than homes are worth.
Looking at stats it is no secret that many homeowners are upside down on their home mortgages. This happens more often than not because lenders know they can rely on inexperienced appraisers who predicated their business on speed and fees the past few years.
According to Ronald James, principal of James & Associates and president of the Las Vegas chapter of the Appraisal Institute, they are seeing assignments where the home is not worth what was paid within the past two years.
This causes a problem because then equity can not be created.
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