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Judy Kivela
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    Years of Experience: 27

    CRS: Certified Residential Specialist
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    CDPE Certified Distress Property Expert, SRS
    WHS: Workforce Housing Specialist

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Kivela Montana Realtors
3100 Harrison Avenue
Butte, Montana
406-491-5777

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Foreclosures

National Foreclosure Trends and Butte Real Estate

Monday, December 28th, 2009

Everybody wants to know how the housing market is doing, especially if they own Butte real estate. I try to keep the newsy pieces to a minimum and spend most of my Internet space on helpful pointers, but a lot of readers have asked about the market. In response to high demand, here’s a peak at the current national foreclosure trends:

Foreclosure Trends

It’s a wonderful thing to own any kind of real estate (although I’m partial to Butte real estate, of course). Unfortunately, many people have lost their homes due to foreclosure since the housing crisis started; there have been over 7.8 million since 2007. California, Florida, Arizona, Nevada, Illinois and Michigan have been topping the count for foreclosures, adding up to 62% of the nation’s foreclosures.

California’s numbers reached 349,435 foreclosures last month, and it was feared that those numbers might escalate. However, there’s some good news there. Even though homeowners are still teetering, lending institutions are caving in under government pressure to work with those homeowners. For that matter, they may even be working with the government to stem the deluge of foreclosures.

HousingPredictor.com conducted a survey of homeowners that shows we may have as many as 25 million foreclosures before everything is said and done, mainly due to homeowners who are tired of watching housing prices fall. Such a glut of the market could cause some serious repercussions for the economy. However, again, there are some positive points.

For instance, current mortgage interest rates are ranging from as low as 4% to 5.5%, cut almost in half from the “housing boom” years. While housing prices may be dropping, the fall is slowing down. As well, lower prices mean more affordable homes. While this may not be a good thing for homeowners, it’s an excellent thing for home buyers.

As prices drop and homes become more affordable, the glutted housing market of foreclosed and for sale homes is slowly shrinking. As the reserve market (the number of houses per capita that are for sale) shrinks, consumer confidence will build up (something we desperately need). Housing demand will rise, surplus will shrink, and prices will stabilize.

Of course, in the meantime, while you’re waiting for things to stabilize, hold on to your Butte real estate. Take advantages of the tax breaks available to upgrade your existing property, maybe get the renovations done you’ve always wanted. There are still opportunities in this market – you just have to find them!

If you’re a buyer looking for a great home, act now to find amazing bargains. I can help. Call me at 406-491-5777 or email me at judy@montana.com for more information.

Links:

Stem the deluge

http://www.latimes.com/business/la-fi-foreclosures21-2009oct21,0,5605171.story

HousingPredictor.com

http://www.housingpredictor.com/epidemic.html

slowing down

http://www.bloomberg.com/apps/news?pid=20601087&sid=a6f3TaKJxPAQ

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Does Your ARM Increase Mean Butte Foreclosure?

Wednesday, November 25th, 2009

With the current Butte foreclosure woes, and the strains of the economy these days, many people are worried about what they’ll do when their ARM (adjustable rate mortgage) resets. Here are a few suggestions to help you weather the current financial storm:

What is an ARM?

ARM refers to a mortgage loan that has a variable interest rate. The amount of the monthly payments will change several times over the life of the loan. ARMs usually have a lower introductory interest rate than a fixed-rate mortgage. After a period of time, the interest rate is recalculated, resulting in a higher interest rate and monthly payment.

Get Out Your Loan Paperwork

Many homeowners are worried about what will happen to their monthly payments when the ARM resets. Foreclosure is a real worry. The best way to avoid Butte foreclosure is to know exactly what the terms of your loan agreement are. Look for the date that the interest rate is set to change. Find out what the cap is on each interest rate adjustment, and what the cap is for interest increases throughout the life of the loan.

After you have gathered that information, you can calculate what your ARM will reset to. It’s best to know what the worst-case scenario payment could be when your ARM adjusts. This information can help you determine if you are going to need help getting your loan payments manageable. The next step is to make a detailed list of your current and future income and bills. This will give you a better understanding of your financial status.

Call Your Mortgage Company

If, after you make this list, you can see that you are going to have trouble making the difference in the monthly payments, call your mortgage company. It’s best to call them before you miss a payment. They may be able to renegotiate the terms of your loan for you.

If you’re ready to sell your home, I can help. Call me at 406-491-1234 or email me at Judy@montana.com for more information.

LINKS:

Foreclosure: http://en.wikipedia.org/wiki/Foreclosure

ARM: http://en.wikipedia.org/wiki/Adjustable_rate_mortgage

Financial status: http://financialplan.about.com/

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Helping Families Save Their Butte Homes

Friday, October 23rd, 2009

By now, everyone knows that, just like the Dot Com bubble, the real estate market grew its own bubble to a degree that it finally popped.  Foreclosure numbers went up, sales went down and everyone, from the government to lenders to John Q public, started looking around for someone they could point a finger at and blame.

The hard truth is that placing blame doesn’t do anyone any good, especially those trying to save their Butte homes. The truth is that it’s time to do what Americans have been doing since the country was founded – picking ourselves up off the ground, dusting off and working with what we still have. Thanks to new acts such as the “Helping Families Save Their Homes Act of 2009,” it’s even more possible to do that.

If you’ve been dealing with the possibility of foreclosure, you may have missed the news, so here are a few uplifting highlights that can make all the difference:

  • If you rent your Butte home and the home is foreclosed upon, you have to receive a 90-day eviction notice. You can’t just be preemptively kicked off the property. As well, if you have a lease you have to be allowed to live on the property until the lease is up unless:
  1. the new owner wants to move in and make it his or her residence or
  2. state law says the lease can be terminated on notice.

Although three months doesn’t seem like a lot of time, that’s three months you wouldn’t have had in most states before the Act was passed.

  • Lenders and homeowners are now receiving incentives for successful loan modifications and refinancing under the Making Homes Affordable Program. According to the White House government website, “Servicers covering more than 75 percent of loans in the country have now begun modifications and refinancing under the Administration’s MHA Program.”
  • One of the biggest challenges to homeowners is finding out who owns the mortgages on their homes.  This can make it incredibly difficult to discuss refinancing or modification with the mortgage owner. Thanks to the Act, you have to be informed whenever your loan is sold or transferred to another party. Now, you always know who has control of your mortgage and who you need to talk to.

Dealing in the current real estate market can be hard. If you’re already struggling financially, it can be even harder. Try to keep abreast of the current laws that can help homeowners and families keep their [city] homes!

If you can’t qualify for loan modification or refinancing, and are considering a short sale, I can help. Call me at 406-491-1234 or email me at judy@montana.com for more information.

Keyword/Tag Butte homes

Links:

Foreclosure numbers went up

http://www.realtytrac.com/foreclosure/foreclosure-rates.html

Helping Families Save Their Homes Act of 2009

http://www.zillow.com/blog/mortgage/2009/05/21/president-obama-signs-helping-families-save-their-homes-act/

White House government website

http://www.whitehouse.gov/the_press_office/reforms-for-american-homeowners-and-consumers-president-obama-signs-the-helping-families-save-their-homes-act-and-the-fraud-enforcement-and-recovery-act/

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Posted in Foreclosures | 1 Comment »

Foreclosures in Butte: Title Searches and Title Insurance

Friday, October 2nd, 2009

When you’re looking to buy a home, and especially when you’re looking at foreclosures in Butte or anywhere else, title searches are important.

Many buyers make the mistake of settling for a quitclaim deed without doing a title search. Unfortunately, the person who signs the quitclaim deed may not be the actual person holding the title. If there are any liens on the title, the new owner may get an unpleasant surprise at closing. With foreclosures in Butte, the possibility that there is a lien on the title is even greater.

What is a title search?

Title searches are performed by title companies or lawyers. These companies and attorneys search the public records for information on the property’s ownership. The goal is to find out if there are any problems with the title.

What kind of information can a title search give you?

A complete title search will cover such things as:

  • How many mortgages the property has
  • Any liens, such as judgments or mortgages, on the property
  • Taxes owed on the property

The purpose, other than finding current information, is to establish chain-of-title – who owned the property at what time, who they sold it to and so on. Title companies look for proof that any encumbrances have been taken care of, as well as easements, rights-of-way and anything else that can affect the title.

Why get title insurance?

Most title companies also offer title insurance. Title insurance, depending on the company, provides a guarantee that the title is clear, as well as insuring that you can’t be held accountable for forgery, fraud, defective records or incorrect signatures that occurred before you received the title. It also guarantees that there is no encumbrance or judgment on the property.

Foreclosures in Butte  are a good bet for a great home or investment property. However, make sure you know what you’re getting by having a title search done. As well, spend the money on that one-time fee for title insurance. It may be the best investment you’ve ever made!

Thinking of buying a home?  Let me guide you easily through the entire process, from negotiating the price to having a title search performed to signing your closing papers.  Call me today at 406-491-1234 or email me.

Links:

Quitclaim deed:  http://real-estate.lawyers.com/Quitclaim-Deed-Overview.html

Chain of title:  http://definitions.uslegal.com/c/chain-of-title/

Title insurance: http://www.mtgprofessor.com/A%20-%20Title%20Insurance/Questions%20About%20Title%20Insurance.htm

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Do Butte Foreclosures Make Good Rental Real Estate?

Monday, September 28th, 2009

Even, perhaps especially, in an economic downturn, people are trying to make a living in the real estate market. “Flipping” houses used to be a great way to make a little cash, but not now. Many are now looking at long-term cash prospects, such as renting property, and Butte foreclosures seem to be a good start. But are they? Let’s take a look.

Finding a good rental property isn’t easy. It’s not like shopping; you can’t go into a real estate store and grab the first house off the rack that looks good on you. It’s a process of investigating, gaining knowledge and being realistic. This is especially true when looking at Butte foreclosures.

Homeowners who suffered foreclosure were unable to pay the mortgage. We all know that.  What people usually don’t think about is that the homeowners were probably also unable to pay for upkeep. This means that you, as the buyer, have a larger possibility of buying a money pit rather than a moneymaker. Keep this in mind as you look over a few tips for finding good rental property:

  1. Location – Since you’re looking at foreclosed properties rather than properties that are already set up for renting, you can’t check established rental records. However, you can ask your real estate agent for a list of areas with less people moving out and more moving in. As well, look at areas with surrounding retail development. New shopping malls, theatres and restaurants will bring in more people to an area.
  2. Addition and subtraction – It’s time to do the math. Ask your real estate agent for what the going rental rates are in the area you’re looking at. You’ll need to find out if the rent you can charge will take care of expenses as well as bring you profit. Figure the yearly income you can expect to make and then subtract mortgage payments and operating expenses. If your math produces a negative balance, don’t buy the property.
  3. Taxes – Once you pay expenses, your income is taxable. Now, while you can depreciate rental property, you can’t depreciate the land it’s on. Talk to a real estate agent or accountant to decide whether it’s worth it or not.

If you follow these three tips and remember to pay attention to the amount of repair needed, you might just find some fantastic deals on Bute foreclosures. Take a little time to make sure renting is for you, and then get started.

If you’re looking for potential rental property, I can help. Call me at 406-491-1234 or email me for more information.

Links:

Finding a good rental property

http://www.investopedia.com/articles/mortgages-real-estate/08/buy-rental-property.asp?viewed=1

Going rental rates:

http://www.rentvine.com/blog/index.php/find-the-average-rent-for-your-city/

Depreciate rental property

http://www.real-estate-owner.com/rental-property-depreciation.html

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Butte Foreclosures vs. Short Sales: The Consequential Facts

Monday, August 31st, 2009

Butte foreclosures are a sad fact of life.  The truth of the matter is that, for many, even loan modification isn’t an option.  When faced with foreclosure or short sale, how do you decide which is best?  While short sales have been pushed by many as a viable option, it’s hard to know what’s best for you.  Here are some facts about the consequences of both:

Your Credit

While both Butte foreclosures and short sales will affect your credit score, the differences are wide.  A foreclosure can affect your score for as long as three years or more, and lower it as much as 300 points.  The foreclosure can remain on your public history for over ten years.

However, only late payments show on your credit with a short sale.  Your score can drop as little as 50 points and be affected for as short as one year.  In addition, it isn’t reported on your history; it will show that the mortgage was settled and paid in full.

Your Job

On its own, a short sale generally doesn’t affect your employment.  However, a foreclosure is a different story.  Some employers regularly check their employees’ credit records.  As well, many require credit checks for new hires.  A foreclosure on your record can jeopardize your current position or future opportunities, as well as cause the revocation of a security clearance.

Judgments

In the event of a foreclosure, many banks have the right to try and get a deficiency judgment, stating that you have failed to pay the entire amount of the mortgage.  With short sales, however, lenders will normally agree to give up the right to that judgment and put it in writing.

Lastly, keep in mind that Butte foreclosures generally close below the price they would get from a short sale, so the remaining balance might be significantly higher with a foreclosure.

If you want to stay out of foreclosure through short sales, I can help.  Call me at 406-491-1234 or email me for more information.


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One of the Possible Foreclosures in Butte? All is Not Lost!

Thursday, August 20th, 2009

One of the Possible Foreclosures in Butte?  All is Not Lost!

Thanks to President Obama’s ambitious plan to improve the housing market, being on the list of foreclosures in Butte doesn’t necessarily mean that foreclosure is inevitable.  You have options, and the President’s loan modification program makes keeping your home even more possible.

Overview of the Plan

The President’s plan to reduce foreclosures in Butte is based on the thought that struggling homeowners wouldn’t sell their houses if they could only make the monthly payments.  Due to this belief, participating lenders are required to reduce monthly payments for homeowners who qualify until they’re no more than 38% of the homeowner’s monthly gross income.  After that, the government lends a helping hand.  Between the lender and the government, the mortgage payments would be dropped to no more than 31% through various means (extension of the loan, reduced interest rate, etc).

Even with the 31% threshold, many are afraid that’s not enough incentive for homeowners to keep up payments on a depreciating home.  They speculate that homeowners may default on the loan anyway.  To cover this possibility, the administration is offering cash incentives to lenders and struggling homeowners.

Each lender that participates will receive $1,000 per loan modification.  Those lenders will also get an annual $1,000 for up to three years as long as the homeowner keeps their payments up.  For homeowners facing foreclosures in Butte, the good news is that borrowers can get their principal lowered by $1,000 per year for up to five years.  Again, however, it depends on whether they keep their payments up.

You May Qualify

This is fantastic news for many.  If you’re facing foreclosure due to financial hardship, you may qualify for loan modification under the administration’s plan.  If you live in the home, the principal balance still owed is less than $729,750 and you received the loan before January 1, 2009, you’re eligible.  Be aware, however, that you have to prove that you live there, that it’s your primary residence and that you’re having a financial hardship.

If you’re behind on your mortgage or facing foreclosure, I can help you figure out your options.  Time is of the essence, so give me a call now at 406-491-1234.


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3 Major Things to Look at When Buying Butte Foreclosures

Tuesday, August 18th, 2009

If you’re looking to get a good deal by buying one of the Butte foreclosures, keep in mind that many of the homeowners not only didn’t have money for the mortgage, they probably didn’t have money for the upkeep of the house either.  If you’ve found a home you’re interested in, here’s a short checklist to follow even before you decide to contact a home inspector.

Structure

For some Butte foreclosures, structure is a definite issue.  Pay close attention to the following, as they may indicate more severe problems:

-Are the interior walls in good condition?  Any cracks and stains?
-Are the floors in good condition?  What are they made of?  Some floors are made of substandard materials, unsafe for more than casual use.
-Is the roof in good repair or are there missing/curled up shingles?
-Are the gutters, downspouts and flashing in good condition?
-Do the doors and windows stick or glide freely?  When closed, do they block out weather or is there a draft?

Water

-Is there mold and mildew on the basement walls or a dark, scaly surface?  This can indicate too much moisture, and can mean a leak in the foundation.
-Is the ceiling bubbling, have brown spots, patches or new paint?  New paint might be a sign of covering up stains from water leaks.
-Are there drainpipes around the foundation?  Do they lead away from the foundation?  Are there cracks or a lot of weeds around the area?

Inside Hazards

Many older houses haven’t been updated or may not be up to code.  Here are some of the more common issues:

-Is there asbestos around exposed pipes for the furnace, heating system or water heater?
-Can you see any signs of vermin or insects?  Mice, termites, cockroaches and bats all leave signs of habitation behind.

If everything else is good, have the house tested for radon, carbon monoxide and lead-based paint.

Although there are many other things to consider when looking to purchase Butte foreclosures, these three are essential to a healthy living environment.  Most importantly, make sure you’re an informed buyer.

If you’re looking to buy a foreclosed home, I can help.  Call me today at 406-491-1234 or email me for more information.

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Helpful Hints to Avoid Butte Foreclosures

Friday, July 10th, 2009

Foreclosure is a dreaded word at any time, but the present economy makes it a common dread, one that many homeowners share that normally would never enter their minds. There are new government aid programs as well as tried and true methods for combating Butte foreclosures and every homeowner should know them.

Nip It in the Bud

Procrastination is never a good thing but when it comes to foreclosures it is a death sentence. Most homeowners know when they are on shaky ground and starting to have problems paying their mortgage.

Because it is usually the biggest monthly expense, mortgages are often the first thing to suffer when things get tight. Waiting to talk to your mortgage company about problems until you actually begin missing payments doesn’t leave much time to correct the situation, and believe it or not, most mortgage companies would prefer to work things out than have a “dead” non-performing asset on their books.

Call your mortgage company and talk to them about solutions to your problems. When you call, be prepared to explain the situation that is causing your difficulties to prove that there really is a hardship. Most lenders will send you a pre-foreclosure package that guides you and shows you what you need to do to prove you are under financial strain.

HOPE for Homeowners

HOPE is the HUD program that helps homeowners avoid imminent Butte foreclosures. The government program refinances at a lower rate to help people stay in their homes when all other avenues of solution have failed.

Don’t Give Up Without Exhausting All Means

Your home is important and worth the effort it takes to keep it. With the help of the stimulus plan, banks are able to do more than they used to be able (or willing) to do to provide solutions to homeowners to avoid Butte foreclosures.

If you would like more information on what to do in the event of possible foreclosure, please give me a call at 406-491-5777 or email me.

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Butte MT Foreclosures Can Be an Investment

Monday, July 6th, 2009

5 Things to Look for When Buying Butte Foreclosures as an Investment

People buy Butte foreclosures for a lot of reasons: to live in, as fixer-uppers, to flip and for investment purposes. The current real estate market isn’t so hot for quickly selling foreclosures at a profit. Instead, consider purchasing foreclosures and holding on to your investment until the market turns around. In the meantime, earn money by renting the houses.

Here are 5 things to look for when buying Butte foreclosures to rent out:

  1. Most Butte foreclosures are nice homes that, for one reason or another, the sellers have had to let go. With the variety of houses available, take your time and find a property that doesn’t require a lot of major renovations, unless, that is, you’re a handy man and enjoy fixing up homes.
  2. Figure out the costs of the potential rental property and then look at the average rent in the area. If the rent would cover the costs and a little over, it’s a keeper.
  3. Many of the homes have been updated with more energy efficient appliances. Energy efficiency is better for you, as the landlord, and better for them, as the tenant. Due to the current push towards environmental concerns, if you buy a home that isn’t updated, you may eventually want to do so. Cut through the update havoc and look for energy efficient homes.
  4. Like you would with any potential home, look into the cost of utilities, property taxes and so on. Make sure that you can handle the costs in the eventuality that the home stays empty for a while.
  5. Make sure the home you look at is “tenant friendly”. If there are a lot of breakable fixtures, big bay windows or glass enclosures, you might not want families living there due to the cost of repairs. Families are the highest number of renters, so look for homes that would withstand children.

“Accidental” landlords – those who hadn’t planned to rent, but did because they couldn’t sell – are a growing population. Instead of being accidental, plan for it. Look into buying Butte foreclosures as a rental investment. There might be a home just waiting for your tenants.

If you need help finding the perfect foreclosed home, give me a call today at (406)-491-5777 or email me.

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