by Brian Brady
Commercial Real Estate Finance Expert
Structured Debt and Equity
Licensed Real Estate Broker in AL, CA, and FL
1- Gamble your house away.
2- Patronize a prostitute.
3- Fund a stated…(sound of needle scratching across a vinyl record)
It may now be considered a crime to originate a stated income loan in the State of Nevada. Of course all the waiters, cocktail servers, strippers, and construction workers will be left behind but there will be no stated income loans in Nevada.
Last year, one out of four loans, funded in Nevada, were stated income. One out of three loans, funded in the Las Vegas metro area were stated income.
Gamble responsibly.
Jeff Corbett says:
Are prostitutes W-2’d? Someone needs to send out a memo to ensure those in the worlds oldest profession can still get a loan.
October 2, 2007 — 3:02 pm
Robert Kerr says:
Last year, one out of four loans, funded in Nevada, were stated income. One out of three loans, funded in the Las Vegas metro area were stated income.
The proliferation of stated-income “liar’s loans” is a major reason why NV has an outrageous foreclosure rate of 1 per 175 households.
If you really have the income, and you’re not a tax cheat, then you have adequate documentation – your tax returns.
October 2, 2007 — 4:07 pm
Brian Brady says:
“If you really have the income, and you’re not a tax cheat, then you have adequate documentation – your tax returns.”
Booo! No fun! Where’s your Vegas spirit?
(I know, I know; we’re in agreement, Robert. I just thought the Nevada moral compass was a wee bit skewed)
October 2, 2007 — 7:08 pm
Kaye Thomas says:
I know a lot of people who live in Vegas who work in the service industry…..Brian.. don’t ask what service ..
Most of them make a lot of money from tips but hard to track as they don’t declare all on taxes.. let’s remember .. these are the people this loan was created for.. not Joe with a FICO of 560 who made $400 a week and wanted to buy his $600,000 dream home..
October 2, 2007 — 8:02 pm
Brian Brady says:
Kaye,
You’re correct. The legislature is throwing out the baby with the bathwater with this legislation.
October 2, 2007 — 10:17 pm
Barry Cox says:
Now how are all of us Realtors going to get loans now? 🙂
October 2, 2007 — 10:19 pm
Real Estate Blogger says:
It makes sense, but in Nevada of all places? Gotta say that’s about the last place I would have expected to see such legislation (for the obvious reasons).
October 3, 2007 — 11:14 am
Brian Brady says:
The irony is glaring, Scott
October 3, 2007 — 11:25 am
Paul Francis says:
Sad but true. The real reason behind all of the foreclosures that followed all of the stated income loans in Nevada (Las Vegas Specifically) had nothing to do with the Prostitutes, waiters, Cocktail Waitresses, Strippers (who from my experience payed cash anyways) or bartenders. (By the way, I know several Cocktail Waitresses and Bartenders in Las Vegas that make more then Doctors when you factor in the non reported tip income after taxes.)
Specifically… it came from speculators who thought that counting on future appreciation meant the same thing as investing.
Yes.. Nevada. What a great state it was until the refugees of higher taxes from the “Golden State” relocated to implement the very same thing they were escaping. Government oversight in matters they really have no clue about – or the consequences.
October 6, 2007 — 2:43 am
Brian Brady says:
No argument, Paul.
“Government oversight in matters they really have no clue about – or the consequences”
The point of the post.
October 6, 2007 — 10:26 pm