Foreclosures in Boise, ID | Boise Short Sales | Homes in Boise, ID

Inside Real Estate
Call us!!!!!
208-713-1123
Follow My Blog
RSS
loribilyeu
Lori Bilyeu
Agents
    Years of Experience: 10

    Buyer Representative
    Sellers Representative
    Dual Representative
    Builder

Direct: 208-713-1123

Office: 208-377-2999

Email Me

» About Me » Visit My Website
Company Info

Re/Max - Elite Properties
10062 W Fairview Ave Ste. 120
Boise, ID
208-377-2999

Real Estate Tools
Schoolsschools
Communitiescommunities
Calculatorscalculators

Posts Tagged ‘Buying a Short Sale’

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

 

Tags: , , , , , , ,
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.

Tags: , , , , , ,
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.

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

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.

Tags: , , , ,
Posted in Uncategorized | No Comments »

November Homes sales leap

Monday, December 28th, 2009

After surging 10% in October, sales of existing homes jumped again in November, growing 7.4% compared with October to an annualized rate of 6.54 million units, according to the National Association of Realtors.

“This clearly is a rush of first-time buyers not wanting to miss out on the tax credit,” said NAR’s chief economist, Lawrence Yun.

November was originally going to be the last month in which sales to first-time homebuyers would qualify for a federal tax credit of up to $8,000. However, that deadline was extended and expanded, and buyers now have through June to purchase homes.

The strength of sales in November surprised the industry. A panel of experts compiled by Briefing.com had forecast month-over-month sales growth of just 2.5% to 6.25 million from 6.1 million a month earlier.

The sales total was a also huge improvement over a year ago. Sales rose 45.7% over the paltry annualized rate of 4.49 million units during November 2008.

The contribution made by first-time buyers is evident in a separate survey NAR conducted of its members. They estimate that 51% of sales in November were by newcomers to the market, up a point from 50% in October. Normally, first timers account for about 40% of sales.

Also propelling sales higher were rock-bottom interest rates. The average for a 30-year, fixed-rate loan during the month was just 4.88%, down from 4.95% in October and 6.09% a year ago.

With rates that much lower, homebuyers can save more than $150 a month on a $200,000 mortgage.

Tags: , , , , ,
Posted in Uncategorized | No Comments »

Boise short sales, simplified and profitable

Monday, December 14th, 2009

 

It has become quite fashionable in Boise real estate circles to complain about the difficulty of practicing real estate due to the high number of Short Sales and Foreclosures.  Short sales are  frustrating to the typical Boise real estate agents due to the increased amount of time to obtain an accepted offer and the uncertainty of closing the property in a timely manner, if at all.  Of course the practice of  Idaho real estate sales has always been frustrating whether you were selling residential homes in Meridian, recreational properties in McCall, commercial in downtown Boise, or farms and ranches in Caldwell.  The emotional highs and lows during a real estate transaction are like a roller coaster at Disneyland.  The high purchase price along with a 30 year commitment on the loan can be unnerving for buyers.  Sellers have always been highly irritable because of emotional issues tied to selling their property.  Add the emotions to what has always been an extended escrow period of 30 days or more and tensions run high.

It is unfortunate to see property owners in distress and unable to pay their mortgage but it creates a great opportunity for buyers and real estate investors.  Incredible prices are being negotiated on short sales in Boise, Idaho for example and buyers an investors are taking advantage of the opportunity.  Warren Buffet says ” Be fearful when the market is greedy and greedy when the market is fearful”.  The real estate market in Boise, Nampa, Meridian, Middleton, Caldwell, Kuna, Star, Eagle an the entire Treasure Valley is very fearful.  It’s the time to buy Boise, Idaho real estate.

The key to simplifying short sales in Boise and surrounding areas is PATIENCE.  The banks are overwhelmed with the number of short sales in their system and typical bank negotiators are inexperienced in a financial world that sees their own bank change policies frequently.  Boise real estate agents must inform their buyers and sellers that the  process is not going to be quick.  If we set the expectations up front with the buyer and seller to expect a minimum of 90 days to close the transaction then they will not expect a closing in 30 days.  The RE/MAX agents in our office are trained to negotiate short sales with the bank to get the best value for the buyer and quickest closing for the seller.  Communication with all parties is critical to a successful closing of a short sale in Boise or surrounding areas.  Search for Boise,Nampa Caldwell, Eagle, Star, Kuna and Meridian short sales at www.forclosurequeens.com  .  When purchasing or selling a short sale in Boise, Nampa, Meridian, Caldwell, Star, Kuna or Eagle consult with a short sale specialist at RE/MAX Elite Properties.

Tags: , , , ,
Posted in Housing Market, Real Estate, Real Estate Agent, Short Sales, Uncategorized | No Comments »

Boise Idaho short sale investments in Columbia Village

Wednesday, December 9th, 2009

The old adage ‘tough times don’t last but tough people do’ certainly pertains to the Boise real estate market and Boise real estate agents working in the Treasure Valley today.  But it also might be said that ‘tough times don’t last but great communities do’.  Boise, Idaho’s Columbia Village is a case in point for a great community that continues to adapt to the challenging market conditions.  Designed by prominent local developer Al Marsden and financed by the Simplot S-16 group the 1,000 acre Simplot property coined Columbia Village started in the early 90’s in what was considered ‘out of town’ in south east Boise.  Submitted as a planned unit development it was planned for several recreation centers, schools, parks, business centers, grocery stores and housing for 1,500 families.  Almost two decades later that concept is fully implemented and the resulting resiliency of housing sales in Columbia Village in Boise is impressive.  Commercially Columbia Village is anchored by Albertsons and features hotels, coffee shops, medical facilities and multiple eating establishments. The residential portion of this Boise real estate community is highlighted by a 160 acre sports park that is used year around for soccer, baseball and an assortment of activities including cross country skiing and kite flying.  Indoor racquet ball, work out room and several outdoor pools and tennis courts serve as a meeting place for Columbia Village residents.  An elementary school and junior high school along with a dental facility, assisted living, and several churches give residents the ability to live and walk to needed services.  Columbia Village offers a variety of housing that can be seen in Boise, Meridian, Nampa, and Caldwell or anywhere in the Treasure Valley.  Custom built homes on view rims or garden style homes on 4,000 square foot lots can be found in Columbia Village. Prices from $95,000-$800,000 are available in this community. Less than a 10 minute drive to the Airport, Lucky Peak reservoir or Downtown Boise, Columbia Village is a case study of a good community planning with minimal traffic congestion.    Boise, Idaho’s former single largest private employer Micron is within a mile of Columbia Village and had almost 12,000 employees at its peek.  Now due to difficulties in the computer chip markets have forced Micron to lay off 8,000 employees over the last 3 years. While many communities so close to a major employer facing mass layoffs would have been decimated by such a turn in events Columbia Village continues to defy challenging market conditions.  On pace to close approximately 100 homes in 2009 with an average sales price of $185,334.00 that is within 5 % of the Boise real estate average sold price through December 2009 of $194,000.00.  Columbia Village currently has 46 properties on the market which based off annual sales is an enviable 5 ¾ month supply of homes. 

Columbia Village is a strong example of how good planning, vision and implementing a lasting community with a variety of homes affordably priced can survive in challenging economic times.

Tags: , , , , , , , ,
Posted in Buy a House, Community, Homes for Sale, Housing Market, Property, Property Investment, Real Estate, Real Estate Agent, Short Sales, Uncategorized | 2 Comments »

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.

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

Short sale information: What every seller needs to know.

Wednesday, November 25th, 2009

Short sale information needed from Sellers:  

1.Loan information release form: this form is signed by the seller of the property allowing the real estate agent authorization to receive information about the loan made to the seller.

2.Purchase and sales agreement: The purchase and sales agreement are the terms and conditions that a buyer has agreed to purchase the subject property for less than is owed by the seller. The purchase and sales agreement should stipulate that it is subject to “third Party” approval.

3. Hardship letter: The Sellers’ lender will require a hardship letter that explains in detail why the seller is unable to make the payments on the subject property. As much detail as possible explaining the “hardship” is preferable.  All information is private and must be quarded by the real estate professional and lender.

4.Loan approval for Buyer:  The sellers lender will require verification that the purchaser of the sellers “short sale” has unconditional loan approval. The short sale sellers’ lender wants the highest certainty that the subject property will close,

5.Most recent W-2 for seller: Part of the seller’s lender package is request for financial information. That can include tax information and pay stubs. If seller is an independent business person financials and profit loss statements may be required.

6.Bank statements: Sellers’s short sale lender will typically request copies of the sellers’ bank statements for the last 2 months. The lender wants to see shat accounts and reserves are available for the seller.

7. Listing agreement: The listing agreement between the seller and the real estate company is required by the seller’s lender. This demonstrates to the sellers’ lender that the property has been marketed for a certain marketing period.

8.Estimated proceeds and expenses: The seller’s Lender will require an estimated HUD closing statement. The estimated HUD (Housing and Urban Development)closing statement includes  the fees that the seller’s lender will pany and any proceeds allowable to any other lien holders behind the seller’s first lender. Any taxes, home owner’s fees, or expenses will be sent to the sellers’ lender for approval.

Tags: , , , ,
Posted in Homes for Sale, Housing Market, MLS, Property, Real Estate Agent, Short Sales | 1 Comment »

A Brief Introduction to Short Sales in Boise, ID

Thursday, November 19th, 2009

All year long we’ve been hearing about how difficult the economic climate is around the country. These economic hard times have become almost intertwined with difficult times in the Real Estate Market. Because of this current state of the economy, many people are now finding it hard to keep up with their mortgage payments, and in Boise, it is no different than any other part of the country. Many are finding it hard to make ends meet.

So as times get harder, instead of losing their homes or ruining their credit, may people opt to sell their home for less than what they owe on the existing mortgage. If they can get the approval of the bank or mortgage company, they will sell their home for less than what they owe on it and save themselves from having their home foreclosed and their credit taking a heavy hit. When a home is sold this way, it is called a short sale because the sale fell short of the balance of the mortgage owed.

Short sales can be found all over the country so whether you live in Boise or Kansas City, you can find one if you are searching for one in your area. Many bargains can be found in the country today if you are looking to buy a home. Look around, check out the real estate ads, call your local banks, and check out the classifieds. You will find a home to fit your family’s needs.

We have a significant amount of experience in working with short sales, so feel free to contact us with any further questions you have!

Tags: , , , ,
Posted in Short Sales | 3 Comments »

Market Recap

  • Avg. Sales Price: 240,000.00

  • Avg. Days on Market: 120

Free Market Alerts

Get local reports delivered to you
 
market alert newsletter

Get free market reports delivered to you. » Sign up today

- Copyright © 2010 Inside Real Estate, LLC

Inside Real Estate does not endorse the agents on this site, and does not guarantee the content submitted by the site's members. Blog and page entries, content, and other information contributed by agents that are members of the site are accountable to the particular agent. Inside Real Estate and Omnia Alliance LLC take no accountability for the content contributed by members to the site.