Boise

• You own your own home free and clear.  You are in the most enviable position of all.
• You own your home and are making the payments on time.  The house is worth less than it was and maybe less than you paid for it.  You did what you were suppose to do and were affected by the great number of influences beyond your control.  It appears that irresponsible behavior is being rewarded and there is no help for you.  Hang in there you are still in good shape.
• You own a home and are slipping farther behind every month because of job loss or decreased income.  You may be eligible for a refinance or loan modification. Check here:  http://www.makinghomeaffordable.gov/
• You thought you owned a home, but looks less likely as time passes and you slip farther behind in payments.  The lottery avenue isn’t working out too well. Check the previous link to see if you qualify, if not read previous post “Foreclosure verses Short Sale” and decide what works for you.
• Had to take a job out of the area and leave your home.  Can’t sell your home for enough to pay off the loan.  Refer to previous post “Foreclosure verses Short Sale”
• You have passed the point of no return and are losing your home.  Having the bank seize your home is nobody’s idea of a good time.  The effect is devastating on your credit, your family and self-esteem.  How do you get out of this mess?  The same way you eat an elephant, one bite at a time, and a positive attitude, you will get back on track.
• You don’t own a home……..it’s a great time to purchase.  It may appear that you are taking advantage of the aforementioned owner’s bad luck, but you are also helping to get the market turned around and helping yourself to start building equity.  Call now!

A decade long tangle of greed and ego by many agencies, market players, congress and yes, you and me, has taken us on an unforgettable roller coaster ride.

  “An Imperfect Storm” by Alan Smith is an excellent article that summarizes the roles of the participants.  http://www.alansmith-re.info/custompage.cfm?cpid=1604

The timing and unintended consequences of the participants has brought us to the brink of economic collapse. 

Congress mandated affordable housing, forcing less stringent  lending criteria and lower interest rates. 

Lenders became more innovative and flexible, as did the secondary mortgage markets, that buy the loans.

Realtors jumped on the band wagon and sold as many properties as we could to buyer’s that would not normally qualify for financing.

Sellers saw the opportunity to maximize profits as supply dwindled and demand increased property values.

Buyer’s, now having a new home, of course, need furniture, appliances, TV’s, window coverings, fencing, landscaping, etc.  

The economy was booming.  We were all living large, we could buy on credit as money was flowing and credit was easy to get.  We could get a line of credit on our home equity and go on vacation. 

What goes up must come down, and that it did!

Wow, now what?  How does this affect you?  See the next post.

Real Estate markets are cyclical.  They always get better and they always get worse.  Good markets nearly always last longer than bad ones.

Predictions are varying as to whether we have hit bottom and how long a recovery will take.  Market statistics show that we are back to our 2003 levels, which is prior to the surges and subsequent declines.  Returning to steady growth in real estate is good news!

It will take time, but when the housing prices begin to even out with fewer fluctuations and behave in a more moderate manner, our market will return to it’s previous healthy status.

If you have the ability to purchase now, while the prices and interest rates are low, you can reap the benefits of the steady and healthy growth that is eminent.  If not now, then jump in as soon as you can.

Don”t know when the time is right for you?  Call now!

Hurry, or you will get left behind.

The $8,000 tax credit is quickly nearing expiration.  Your offer must be accepted by April 30, which is just around the corner.  If you don’t understand exactly how it works or how it could affect you…………..call now!

Rural Development loans are also nearing an end, as their funds are almost depleted for an indefinite amount of time.  Need more information on these zero down loans?  Call now!

The interest rates are still incredibly low.  The home prices are also very low. 

You can begin your personal economic recovery and prosper as the market corrects and starts a steady and stable growth.  Yes, it will take time to build the values back up.  Place yourself in the position to grow with the market!   Don’t be saying “I should have” bought a home when you “could have” and really wish you “would have”. 

Call today and lets get you into your new home!

Shirley Amick Robertson 208-866-6300

Listen up!  This is Huge

$40,000 or 20% of the purchase price available for the purchase of a Bank Owned Property in Caldwell!

*     Funds may be used for closing costs, interest reductions and principal reductions.

*     Borrower must complete a Homebuyer Education course – classroom only

$20,000 available without location stipulation

*     The amount up to the $20,000 will be based on the borrower’s income level and need

*     Borrowers with less than 80% of Area Median Income

*     Borrower must complete a Homebuyer Education course – classroom only

Other great loans are available, some for qualifying first time home buyers and some for non first time home buyers

*     Stepped Rate to allow you to make smaller payments based on 4.5% interest for the first three years, and 5.25% thereafter

*     Tax Credit Second Loan to allow you to use the tax credit for your down payment and closing costs instead of waiting to get reimbursed

*     Good Credit Rewards Loan – a Second Mortgage for down payment and closing costs

*     Other options to meet your individual needs

Call or e-mail today to get started on qualifying and finding your new home

Funds are Limited

So you owe more on your house than it is worth? If so, you are one of many, but that does not qualify you for a short sale.  There are 3 major items that banks will be looking for to consider a seller for a short sale.   There will be much more information required, but this is an excellent place to start.  You have to meet all three of the following to qualify:

Financial Hardship

A verifiable issue that has caused a material financial change between the day the mortgage was signed and now, such as loss of income due to job loss or business failure, medical expenses, adjustable payment that has increased.

Monthly Shortfall

Pretty self explanatory.  If the money that you bring in each month is less than the monthly expenses, that equals a shortfall. If you do not currently have a shortfall, but will soon have one due to a pending layoff, etc, you may qualify.

Insolvency

The lender wants to see that you owe more than you have coming in and do not have other means to pay down your loan.  You do not need to be completely broke, but over time will be unable to pay your home loan obligation

If you want to stay in your home and have not been forced to leave the area to find work, then a good first step might be to seek a loan modification.  If the lender is not cooperating or you still have no choice but Short Sale or Foreclosure, then a Short Sale should help you get back on track sooner.  As soon as you foresee a problem, take steps immediately as the process is lengthy.

http://www.shirleyamick.com

A large percentage of properties on the market, and recently sold in the Boise Area are Bank Owned (Forclosed Properties) or Short Sales (Amount due to lender exceeds the value of the property).  If you are faced with hardship dictating that you must let your home be repossessed by the lender or sell for less than the amount owed, perhaps the following will help with your decision:

Foreclosure

1     Ineligible for many real estate loans for 5-7 years

2     Have to disclose foreclosure on loan applications for 7 years

3     Credit scores can be lowered from 250-300 points and will affect score for 3 years

4     Remains as public record for 10 years

5     Security clearance can be revoked

6     Credit reports for current and future employment can cause termination or non-hire

Short Sale

1     Eligible for new real estate loan after 2 years

2     No declaration of short sale on loan applications

3     Credit scores can be affected as little as 50 points for as brief as 12 to 18 months

4     Not reported on credit history therefore not public record   

5      A short sale on its own does not challenge most security clearances

6     Not reported on credit reports and therefore not a challenge to employment

In both cases lenders have the right to file “Deficiency Judgment” (collect the difference in the amount received and amount owed).  In some sucessful short sales it is possible to convince the lender to give up that right.

This is just a brief summary of the effects that a foreclosure or short sale might incur.  Please call or e-mail as soon as you foresee a problem arising and we can research any alternatives that may be available to you.

http://www.shirleyamick.com

Next post will cover qualifications of a “short sale”

It is definitely a great time to purchase real estate and a key factor in your ability to do so is tied to your credit report. Every point in your score can make a difference when applying for a home purchase loan. Understanding how your credit is rated will help you to get prepared for your new home purchase.

35% Payment History – It’s pretty much a no-brainer that you have to pay your bills on time to achieve or retain a good credit rating. Thirty days or more past due, judgments, collections and charge offs are going to take a toll on the rating. Clean payment history for the past two years will have more effect than what occurred prior to that.

30% Credit Balances – The ratio between the outstanding balance and the available credit. Zero balances are good and definitely below 30% of the available credit used if you are planning to enter into a loan transaction within the next 3-6 months.

15% Credit History – The length of time since a credit line was established. A seasoned borrower is stronger in this area.

10% Type of Credit – Mix it up. Auto loan, credit card and mortgage history is more positive than just credit cards…….that doesn’t mean it’s better to have a big car payment!

10% Inquiries – This is the most frustrating of all, as sometimes you see inquiries from businesses, credit card companies or insurance companies that you have not authorized. Each inquiry, up to 10, can negatively affect your credit score by 5 to 30 points.

Now that you understand how your credit is rated, let me know when you are ready to get qualified for a home purchase!

Buy Low, Sell High – Great investment advice regardless of the type of investment.

The best time to BUY is NOW. The prices in the Boise Area are extremely low as are the interest rates. The current benefits are all on the buyer’s side!

As a property investor, you can stimulate the economy, which in turn will raise the value of your investment. We all have to ride out the effects of the current economy. Outside of the rental income that you can glean, your return on investment won’t be immediate, but it will be worth waiting for. So instead of being like “Chicken Little” yelling “the sky is falling, the sky is falling”, lets turn the situation to our advantage.

Lending criteria has become more stringent, so if you are a qualified buyer, act now. If you are uncertain if you can qualify, call and we will check several avenues and get you on the right track.

Call today!

Sweet incentives make RIGHT NOW the best time to invest in your new home:

Prices and interest rates are at historic lows

$8,000 Tax Credit for home buyers

*That have not owned a home in the past 3 years

*A Sales contract signed by April 30, 2010 and close by June 30, 2010

$6,500 Tax Credit for home buyers

*Have owner occupied a home for 5 consecutive of the last 8 years

*That purchase a home with Contracts signed

between Nov 6, 2009 and April 30, 2010 and closed by June 30, 2010

Income limits raised for both tax credits

*Individuals can earn up to $125,000/year

*Couples can earn up to $225,000/year

*Home cannot exceed $800,000

*Must occupy the new home for at least 3 years or

the IRS recaptures the tax credit

Call or e-mail me today