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Posts Tagged ‘Boise Idaho Short Sales’

Short sale vs Foreclosure..What do I do?

Tuesday, April 27th, 2010

I have had several people stop me and say ” is it worth it to do a short sale or should we just walk away, not deal with the hassle of a short sale and hand the keys back to the bank?” This is something only  you and your family can answer, but before you make that decision, lets look at some things I understand to be some key factors.

Short Sale Benefits

Here are a few benefits for doing a short sale that may not have occurred to you:

  • You are in control of the sale, not the bank.
  • You may sleep better at night knowing who is buying your home.
  • You will spare yourself the social stigma of the “F” word, foreclosure.
  • Contrary to popular belief, you can be current on your payments and still effect a short sale.
  • Your home sale will be handled like any other home sale.

Buying Again After a Short Sale

If your payments have never fallen behind 30 days late and the lender does not require that you pay back the loan, Fannie Mae guidelines may allow you to buy another home immediately. The wait for an FHA loan is 3 years.If your payments are in arrears yet a short sale is granted by your lender, you may qualify to buy another home with a Fannie-Mae backed mortgage within two years, regardless of whether the home is your primary residence.

Buying Again After a Foreclosure

With certain restrictions, you may be eligible to buy another home in 5 years if the home was your primary residence. Without restrictions, the wait is 7 years.If you are an investor and do not occupy the home, the wait to buy with a Fannie Mae insured loan is 7 years.

Affects on Credit After a Short Sale

A short sale is not a derogatory mark on your credit because credit bureaus do not show the word “short sale” on your credit report. It may say “pay as agreed” or “paid as less than agreed,” among other categories. Some clients have reported negative FICO score drops from 50 points to 130 points.The point drop is typically due to being in default, that is behind on your payments.

Affects on Credit After a Foreclosure

A number of sources have reported FICO score drops from 200 to 400 points after a foreclosure. Generally this credit score will remain on your credit report as a public record for 10 years.

Credit Reports After a Short Sale

All lenders report short sales differently and some do not report them to the credit bureaus at all.

Credit Reports After a Foreclosure

If a prospective employer runs a credit check on you, your job application may be denied if you have a foreclosure on your record.

Deficiency Judgments After a Short Sale

Judgments are often negotiated between the seller and the short sale bank. In some cases, in many states, if the home is your personal residence and was financed through purchase money, there is no deficiency judgment.

Deficiency Judgments After a Foreclosure

Banks are unwilling to negotiate deficiency judgments with the homeowner after a foreclosure, in many states.. 

Loan Application Questions After a Short Sale

Loan applications do not ask questions about a short sale. You may report that you sold your home.

Loan Application Questions After a Foreclosure

You are required to answer the question: “Have you ever had a property foreclosed upon or given a deed-in-lieu thereof in the past 7 years.” If the bank sees you have had a foreclosure, your loan most likely will be denied. If you lie, you may be subject to investigation by the FBI for mortgage fraud.

Length of Time to Move After a Short Sale

If you’ve had a foreclosure notice filed, you may be able to postpone that action while the bank considers your short sale. The wait for short sale approval can be from 2 to 3 months, or LONGER.

Length of Time to Move After a Foreclosure

Unless prior arrangements have been made, the bank may want you to immediately vacate the property and can commence eviction proceedings.

Taxation After a Short Sale

A personal residence is exempt from mortgage debt relief until the end of 2012 on a federal level. Some states will still tax you unless you qualify for an exemption. An investor is not exempt from mortgage debt relief, subject to certain conditions.

Taxation After a Foreclosure

Same as with a short sale. Except some lenders immediately send out 1099s, even if the owner is exempt. With all of this being said, Sellers and buyers MUST realize, hold on you in for a ride……

In closing, always obtain legal and tax advice before making a decision between a short sale or a foreclosure…. visit our website at www.theeliteteam.net for shortsale and foreclosure listing, or call us at 2087131123 Lori

 

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Posted in Foreclosures, Short Sales | No Comments »

First time homeowners

Monday, March 15th, 2010

If you’re like many first-time homebuyers, chances are you’ve been spending your weekends driving around visiting open houses and new model homes. This is a great way to get a feel for what you want. The problem is that what you want isn’t always what you should get.

Before you start touring homes for sale, it’s important to start off with a budget so you know how much you can afford to spend. Knowing what mortgage payment you can handle will also help you narrow the field so you don’t waste precious time touring homes that are out of your reach.

Where to begin

The key factor in figuring how much home you can afford is your debt-to-income ratio. This is the figure lenders use to determine how much mortgage debt you can handle, and thus the maximum loan amount you will be offered. The ratio is based on how much personal debt you are carrying in relation to how much you earn, and it’s expressed as a percentage.

The ideal ratio

Mortgage lenders generally use a ratio of 36 percent as the guideline for how high your debt-to-income ratio should be. A ratio above 36 percent is seen as risky, and the lender will likely either deny the loan or charge a higher interest rate. Another good guideline is that no more than 28 percent of your gross monthly income goes to housing expenses.

Doing the math

First, figure out how much total debt you (and your spouse, if applicable) can carry with a 36 percent ratio. To do this, multiply your monthly gross income (your total income before taxes and other expenses such as health care) by .36. For example, if your gross income is $6,500:

doing-math1.jpgNext, add up all your family’s fixed monthly debt expenses, such as car payments, your minimum credit card payments, student loans and any other regular debt payments. (Include monthly child support, but not bills such as groceries or utilities.)

doing-math2.jpg*Your minimum credit card payment is not your total balance every month. It is your required minimum payment — usually between two and three percent of the outstanding balance.

To continue with the above example, let’s assume your total monthly debt payments come to $750. You would then subtract $750 from your total allowable monthly debt payments to calculate your maximum monthly mortgage payment:

doing-math3.jpgIn this example, the most you could afford for a home would be $1,590 per month. And keep in mind that this number includes private mortgage insurance, homeowner’s insurance and property taxes. To determine the price of home you can afford based on this amount, use a home affordability calculator.

Exceptions to the 36 percent rule

In regions with higher home prices, it may be hard to stay within the 36 percent guideline. There are lenders that allow a debt-to-income ratio as high as 45 percent. In addition, some mortgage programs, such as Federal Housing Authority mortgages and Veterans Administration mortgages, allow a ratio higher than 36 percent. But keep in mind that a higher ratio may increase your interest rate, so you may be better off in the long run with a less expensive home. It’s also important to try to pay down as much debt as possible before you begin looking for a mortgage, as that can help lower your debt-to-income ratio.

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Posted in Buy a House, First Time Home Buyers, Homes for Sale, Property Investment, Real Estate, Real Estate Agent, Short Sales | No Comments »

Investments in Boise Idaho

Friday, February 19th, 2010

 “It was the best of time, it was the worst of times, it was the age of wisdom, it was the age of foolishness” a quote from Charles Dickens novel a ‘Tale of two cities’ seems appropriate for the Boise, Idaho real estate market.  The anxiety and suffering in what is being called the ‘Great Recession’ is all to real and painful to the tens of thousands of Boise, Idaho residents whose lives have forever changed with job losses, housing foreclosures, reduced wages, and minimized benefits. Many real estate agents were caught up in the ‘tidal wave’ of the rising market as real estate schools popped up on every corner to graduate real estate agents faster than they could say “flip that house”. But as the ‘wave’ receded it turned into a ‘rip tide’ and many real estate agents have fallen victim to the economic ills that plague America.  Those remaining Treasure Valley agents including those practicing real estate in not only Boise but Meridian, Nampa, Caldwell, Star, and Eagle are constantly barraged with negativity from their client’s disappointment over negative equity in their homes or the lengthy time to close escrow.  The real estate agents who are able to withstand these tumultuous times are growing fewer by the month.  With over 6,000 agents at the peak in the Fall of  2006 that number has dropped almost in half to 3,000 agents by December 2009.

      As Boise, Idaho real estate hovers at what many experts predict as the bottom of the market the time is perfect to become a real estate agent and/or increase your real estate investment portfolio.  Boise short sales and Boise foreclosures blanket the market of properties for sale.  Estimated yearly single family residential sales of approximately 8,000 units are far from anemic.  First time home buyers, investors and upper end buyers are scavenging Boise, Meridian, Nampa, Caldwell and surrounding areas for unbelievable prices on homes.  Throw in tax incentives and low interest rates and it is obvious that it is a great time to invest in or have a career in real estate.  As difficult as it seems from many perspectives it really is the ‘best of times’ for real estate investors.

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Posted in First Time Home Buyers, Homes for Sale, Housing Market, Real Estate, Short Sales | 1 Comment »

Real Estate Investments

Wednesday, January 27th, 2010

Recently there has been allot of information about Boise, Idaho real estate in the news.  Although Boise has not been immune to economic challenges and as the Idaho legislature grapples with budget cuts and financial difficulties the Boise real estate market continues to move.  In 2009 there were 3,256 residential properties sold in Boise, Idaho.  The average purchase price was $193,552 and the median price was $163,475.00.  Compare that to 2008 where there were 3,259 residential properties sold in Boise, Idaho.  The average purchase price was $234,292.00 and the median price was $194,900.00.  Although purchase price’s dropped the volume of sales was constant.  That is great news for investors in a market that saw average rents stay constant during that same period.  In other words higher return on investment.

Investors should purchase real estate in areas that they have a certain level of familiarity and knowledge.  Single family residential homes make a great option for real estate investors who are skittish or unsure of their abilities to dissectreal estate investments.  Most have purchased several single family residential properties to live in as a primary residence in their lives.  That process has created the valuable  skill of being able to understanding the most difficult issues of real estate  investing including financing, property values, taxes, property repairs, and property saleability . Evaluating neighborhoods and competing properties can be helped by selecting the right real estate professional.  A Realtor can help provide you with information and negotiating purchase price to advocate on your behalf to get the best real estate investment available.

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Posted in Buy a House, Community, Condos, First Time Home Buyers, Foreclosures, Homes for Sale, Housing Market, MLS, Property Investment, Short Sales | No Comments »

Short Sale Negotiations

Wednesday, January 13th, 2010

Short Sale Negotiations

The sellers can agree to any type of purchase offer put before them for signature, but it’s not binding unless the sellers’ bank approves the offer. It doesn’t matter what stipulations are in the offer if the bank won’t accept them. Your true negotiation does not lie with the seller; it lies with the bank’s negotiator.

Banks rely on desktop appraisals and third-party BPOs (broker price opinions) to determine value. Although banks don’t want to follow through on a foreclosure, they also want fair market value. It is up to the listing agent to provide comparable sales and to substantiate the price submitted by the buyer. Call Me at 208-713-1123,208-941-5177, or visit our website at WWW.theeliteteam.net for further assistance.

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Posted in Uncategorized | No Comments »

A must see! Short Sale tips for individual Banks

Monday, December 14th, 2009
INDIVIDUAL BANK SHORT SALE TIPS

 I thought it might be beneficial to exchange tips/procedures on short sale procedures by the various banks. Things we find out along the way. I might start off with three: 
(1) Most short sales requests are now required by the government for the bank to analyize it first for a loan modification which means a package does not automatically go to loss mitigation. CHASE requires you to verbally submit the financial information over the phone (in addition to the written financial statement in your package) BEFORE it gets switched over to loss mitigation. No one at Chase told us this for 5 weeks and 7 phone calls.
(2)  National City (PNC) also wants the Seller to verbally contact them and request a short sale before it will go to loss mitigation.  Natioanl City is now out 12 weeks minimum from entry into the loss mtigation department.

(3)Also the last two short sales I have done, if there is a HELOC( Home Equity line of credit) National City and Greentree  now want a 10% payoff from the first to release the lien but  they will not forgive the balance. Hope this helps you. Please pass on your individual bank stories.

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Posted in Homes for Sale, Housing Market, Real Estate, Relocation, Short Sales | 1 Comment »

Guidelines Aim to Ease Short Sales

Thursday, December 3rd, 2009

The Obama administration laid out final guidelines on Monday that should make it easier for some financially troubled borrowers to sell their homes. 

The guidelines are designed to encourage the use of short sales, transactions in which the borrower with lender approval sells the home for less than what is owed on the loan. The program also makes it easier for borrowers to voluntarily transfer ownership of properties through a “deed in lieu of foreclosure.”

 Short sales can result in higher prices than foreclosures and can be less damaging to local neighborhoods, in part because homes aren’t left vacant and exposed to vandalism. But there transactions are often difficult to complete.

 Under the new plan borrows will receive $1,500.00 from the government if the sell their homes for less than the amount of their mortgages. The program is open to borrowers who may be eligible for the government’s loan-modification program, but don’t end up qualifying, or are delinquent on their modification, or request a short sale or deed-in-lieu transaction.

The short-sale program is the latest addition to the Obama administration’s $75 billion foreclosure-prevention plan, which includes incentives for mortgage companies and investors to re-work troubled loans. The government first said in May that it would include short sales in the program, but it has taken months to finalize the details.  Under the new guidelines, second-mortgage holders can receive up to $3000.00 of the sales proceeds in exchange for releasing their liens. Investors who hold the first mortgages, meanwhile, can collect up to $1000.00 from the government for allowing such payments.

Borrowers who complete a short sale under the program must be”fully released” from future liability for the debt, according to the quidelines.

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Posted in Buy a House, Foreclosures, Housing Market, Mortgages, Questions and Answers, Real Estate, Short Sales | No Comments »

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  • Avg. Sales Price: 240,000.00

  • Avg. Days on Market: 120

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