Did you know there may be other options to save your home and your credit from foreclosure. There are some many questions out there and even more misinformation. By now most people have heard of the term “shortsale” but what they don’t know are the in’s & out’s of a shortsale.  What we should actually say regarding a “shortsale” is that it’s a “LONG” sale. There is NOTHING short about it. 

If you are a seller you may be asking…. how long does (will) it take? Is there any money out of my pocket? What info do I need to provide? Well those are all loaded questions. First, how long does it take? It depends on the bank, the mood of the negotiator, how backed up they are in their paperwork, and so on and so forth.  Secondly, is there any money out of my pocket as a seller? That also depends on the loan type, if there is a second mortgage, or a line of credit, etc.

What you really need to do is educate yourself, go on line, call an agent and do it NOW! don’t keep putting it on the back burner, you’ll feel much better getting it figured out.

Here is a great link to some inside info regarding shortsales ”SAVED BY THE SHORTSALE“ CLICK HERE  (make sure your sound is turned up)

Until next time…………….

Blessings from Tonya & Tifni

Did you know you can buy a fixxer upper and with the right kind of loan include the money in the loan to fix it up? What a great idea, huh? With all the distressed properties on the market there are this seems like the perfect solution to a market full of “fixxer uppers”The purchase of a house that needs repair is often a catch-22 situation, because the bank won’t lend the money to buy the house until the repairs are complete, and the repairs can’t be done until the house has been purchased.

HUD’s 203(k) program can help you with this and allow you to purchase or refinance a property plus include in the loan the cost of making the repairs and improvements. The FHA insured 203(k) loan is provided through approved mortgage lenders nationwide. It is available to persons wanting to occupy the home.

The downpayment requirement for an owner-occupant (or a nonprofit organization or government agency) is approximately 3.5% of the acquisition and repair costs of the property.

The 203(k) loan includes the following steps:

	A potential homebuyer locates a fixer-upper and executes a sales contract after doing a feasibility analysis of the property with their real estate professional. The contract should state that the buyer is seeking a 203(k) loan and that the contract is contingent on loan approval based on additional required repairs by the FHA or the lender.
	The homebuyer then selects an FHA-approved 203(k) lender and arranges for a detailed proposal showing the scope of work to be done, including a detailed cost estimate on each repair or improvement of the project.
	The appraisal is performed to determine the value of the property after renovation.
	If the borrower passes the lender’s credit-worthiness test, the loan closes for an amount that will cover the purchase or refinance cost of the property, the remodeling costs and the allowable closing costs. The amount of the loan will also include a contingency reserve of 10% to 20% of the total remodeling costs and is used to cover any extra work not included in the original proposal.
	At closing, the seller of the property is paid off and the remaining funds are put in an escrow account to pay for the repairs and improvements during the rehabilitation period.
	The mortgage payments and remodeling begin after the loan closes. The borrower can decide to have up to six mortgage payments (PITI) put into the cost of rehabilitation if the property is not going to be occupied during construction, but it cannot exceed the length of time it is estimated to complete the rehab.
	Escrowed funds are released to the contractor during construction through a series of draw requests for completed work. To ensure completion of the job, 10% of each draw is held back; this money is paid after the lender determines their will be no liens on the property. For answers to the most asked questions follow this link http://www.fhainfo.com/fha203k3.htm. as always, untill next time………… blessings Tonya and Tifni Visit our website for 24/7 market access www.BoiseHomes4u.com

As a plan to stimulate the housing market, Congress approved an extension as well as an expansion to the origianl plan. This information is an attempt to inform you about what you “need to know”.

What are the deadlines?

In order to qualify, first-time and repeat buyers must have an accepted contract by April 30, 2010. The home must close on or before July 1, 2010.

How much money is available?

The maximum allowable credit for first-time buyers is $8000. the maximum for repeat buyers is $6500.

Who qualifies for the tax credit?

To qualify as a first-time buyer, the purchaser or his/her spouse may not have owned a residence for the past 3 years. to qualify as a repeat buyer, current home owners must have used the home being sold or vacated as a principal residence for five consecutive years of the past eight.

Are there income limits?

The new law raises the income limits for people who purchase homes after November 6, 2009. The full credit will be available to taxpayers with modified adjusted gross incomes up to $125,000 or $225,000 for joint filers. Those with MAGI (modified adjusted gross incomes) between $125,000 and $145000 ~ or $225,000 and $245,000 for joint filers ~ are eligible for a reduced credit. Anyone with a higher income does not qualify.

How do I qualify to get the benefit?

Buyers can apply the credit to their 2009 tax return, filed on or before April 15, 2010; file an amended 2009return; or apply the credit on their 2010 return, filed on or before April 12, 2011.

Are there certain properties that are eligible?

The tax credit program ~ Extended Home Buyer Tax Credit ~ may be applied to primary residences, including single-family homes, condos, townhomes, as well as co-ops.

Hopefully this sheds some light on the tax credit or at least answers a few questions.

until next time…………….

Blessings

Tonya and Tifni

For market access to Boise Real Estate | Look up listings | Search for property go to http://boisehomes4u.com

Tonya Pense 208 860-1598 tonyapense@remax.net

Tifni Pennecard 208 861-8295 tifni@catchboisehomes.com

Are you one of those? You’ve heard it over and over and OVER, the housing market is at the best it’s ever been if you’re a buyer. So much inventory to choose from it’s almost overwhelming, interest rates have been low for what seems like a “long time” and the government has also played a part in all the excitement by extending tax credits to qualified borrowers.

So, again, my question is…. Are you one of those? What I mean is are you one of those that keeps waiting for the bottom? You just know that there is a “perfect” home out there for you, so you carefully, cautiously move forward making sure that you have just enough information to sort-of know what’s going on. Let me be the match that lights you on fire to get you off the couch!!!

Yes, you are correct, there are some GREAT deals out there but if you keep waiting you are going to miss the boat. What I mean is simply this, you have until April 30, 2010 to find a house and get it under contract. Well, you say, that’s still 6 weeks away. I still have plenty of time. Guess what? People are shopping right now, not just a few people, but a lot of people. We haven’t seen this kind of buzz for a while in the market.

What does this actually mean for you? Inventory is being eaten up, so the GREAT DEALS and the “perfect home” are fewer and farther between and harder to find. Short sales take way too long to get any kind of acceptance back, I would stear clear of those if you are trying for the tax credit.  Bank owned “REO’s” are great, but when you find the one you like, in the best area of town that needs little to no work, at that deal of the century price,  it usually has multiple offers on it. It’s been a while since we’ve seen or heard of “multiple offers”, but it’s very common right now. So again, get in touch with your Realtor and get moving.

If the inventory getting sucked up and the tax credit expiration doesn’t light your fire how about saving money? Interest rates are set to start increasing in the 2nd quarter of 2010, that’s just around the corner. So again, I’m saying that a home that costs you $165K today, $1040 per month payment is going to cost you more when the interest rates go up in a couple months. It’s like missing the Macy’s one day sale (only it will continue to cost you for the next 10, 20 or 30 yrs, YIKES!)

Are you thinking about selling your home? Still, my question is…. Are you one of those? Are you one of those people that is thinking about selling but don’t think this is the market to sell in. Have you heard anything I’ve said? People are buying, get your house on the market, get real about the price and get going!!!

As always, blogging is something you do or write about that you have passion for or knowledge about. I hope this has brought a little light in to your world. If you are in the market to buy or sell Real Estate, get with your Realtor and discuss your options.

Until next time…………

Blessings

Tonya & Tifni

For 24/7 market data or to search the MLS for property visit our website at www.BoiseHomes4u.com. If you need immediate assistance or have questions please call Tonya 208-860-1598 or Tifni 208-861-8295.

When homeowners reach a point where they’re considering walking away from a mortgage on an underwater home that they no longer can afford, one professor suggests that maybe they should do just that.

The Wall Street Journal recently spoke with Brent White, a professor of law at the University of Arizona, regarding his recent discussion paper (.pdf file) titled “Underwater and Not Walking Away: Shame, Fear and the Social Management of the Housing Crisis.” To sum it up, from WSJ:

“The real mystery is not — as media coverage has suggested — why large numbers of homeowners are walking away, but why, given the percentage of underwater mortgages, more homeowners are not,” the professor says.

In case you haven’t already figured it out, underwater mortgages apply to homes that have lost so much value that borrowers are paying significantly more for their homes than the homes are worth. And with property values expected to rise an average of only 3.5% a year for the next decade, according to Bloomberg, some of those homeowners can’t expect to reach home price and mortgage equity for more than 10 years.

• How to handle late mortgage payments

USA Today tells the story of Sharon Sakson, who after losing her job was burning through her savings to pay her $2,400 monthly mortgage – until she realized it simply wasn’t worth it anymore.

“I’m walking away from my house,” says Sakson, 57, who stopped making payments about six months ago on her home in Pennington, N.J. “The bank can have it.”

In 2004, she bought the house for $320,000, then had it appraised at $390,000 and refinanced in 2006. Now, she told USA Today that she can’t imagine it’s even worth what she initially paid for it.

• Tips to help you save your home, even if you’ve lost your job

The consequences for walking away? You could lose 100 points from your credit score and you likely won’t be able to buy another home for seven years.

But maybe that’s worth it for some people, like the 588,000 people who walked away from their homes in 2008, which USA Today says is double the number in 2007.

And if you think strategic defaults will slow once the job market picks up, Mark Zandi, an economist at Moody’s Economy.com, warns in the article that even then it may not make financial sense for some homeowners to stay. Which means the high foreclosure level could remain, even as the economy picks up.

Banks also fear the effect that a rising number of strategic defaults will have on the housing market, but White, the Arizona professor, says maybe they’re the ones who need to be taking some of the blame.

The bank and the borrower both screwed up in making a bad bet on real estate; now they could share the pain.”It is time to put to rest the assumption that a borrower who exercises the option to default is somehow immoral or irresponsible,” White writes. White even proposes that if lenders were prohibited from reporting mortgage defaults to credit bureaus, that could actually result in more loan modifications that actually work; then, fewer homeowners would walk away and everybody would be happy.

 

Of course, we can’t say banks aren’t doing their part. They recently met their goal to modify 500,000 loans through the Obama administration’s program. But since homeowners who owe more than 25% above their home’s value are nixed from the program, maybe they really aren’t doing enough.

 

By the way, if you’re thinking White might simply have written this paper for his own guilt-ridden purposes, The Journal notes that, no, he actually isn’t planning on walking away from his Tucson, Ariz., home. Since White estimates that it’s only about 3% to 5% underwater, that’s “not enough that walking would make sense,” he told the newspaper.

 

But what if the home was 30% or even 50% underwater? Would you walk away from a mortgage that cost you that much more than the house was worth? If not, what would prevent you from doing so?

that’s all for now, until next time……………..

Blessings

Tifni &  Tonya

visit our website for 24/7 market information www.BoiseHomes4u.com. A quick thank you to our writters from MSN Real Estate, they provided the information posted above.

 

With no end in sight regarding short sales or bank owned properties, the talk of the town is loan modification to keep you out of either situation, but are the banks really serious?

With the current economy, people have lost their jobs, had their income cut in half and most of us are scraping the bottom of the barrel penny by penny, so the answer has to be a loan modification right? Well, tell me how are you going to qualify for a new loan with no job or an income that has been cut in half? I’m sure the government had big plans when they introduced the loan modification idea but they have failed to realize that you have to “QUALIFY” for the loan, and if the home is “under water” {lost value” the bank isn’t going to give you a loan for more than the home is worth, are they? You’re guess is as good as mine.

I’m sorry to bring the negativity in but the need to vent has been hanging over my head for months now. What do you think the answer is? When do you say enough is enough!!! Have you, like many of us, cashed in your retirement account, 401K, IRA, etc. just to stay afloat only to be just as broke as you were the day you left high school with BIG dreams and aspirations ready to conqueror the world? Back then you didn’t know any better, broke was just a way of life, remember digging for change in the couch or seats of your car for gas money? Again, we didn’t know any better.

We sell Real Estate for Re/Max Elite Properties and day after day we see people coming to their wits end, after spending every last dime trying to hang on only to feel defeated and beaten down. They come to us for advice on how to get out of their home, hence, short sales or if they’ve waited too long, a foreclosure is inevitable.

Before you spend every last dime, educate yourself, cut your losses and save yourself and your dignity.

until next time…………

Blessings

Tonya & Tifni

Quiet culdesac waiting for a new home owner

We are excited to bring you this great west Boise home for only $157,900. It’s located off Ustick near the Cole area and is waiting for a new homeowner.  This home boasts 3 bedrooms and 2 baths with a formal living area (currenlty being used as a home office) all on one level.  The family area is warm and inviting with an open kitchen design with a breakfast nook that looks out to the Boise mountain views of Bogus Basin. There are no back neighbors and the landscaping is simply beautiful. 

This home is just under 1500 sq ft and sits quietly on a cul-de-sac, the landscaping is mature and welcoming. You will see the pride of ownership when you view this home shown by all of the custom features it has.  The current homeowners are motivated and ready for all offers. They are looking forward to moving to the Kuna area to be closer to their grandchildren.

Please visit our website for more information at www.BoiseHomes4u.com or feel free to contact us: Tonya 208 860-1598 or Tifni 208 861-8295

Reference MLS # 98394696

until next time……………

Blessings,

Tonya & Tifni

Changing times, changing rules……..HUD temporary flipping requirements rule waived.

HUD announced a temporary waiver of the 90 day flipping requirements rule. The waiver is effective for FHA purchases with contracts signed on or after February 1, 2010. Purchase contracts signed before February 1, 2010 are not eligible for the waiver.

The waiver is limited to sales meeting the following general conditions which are designed to protect FHA borrowers against “flippers” where properties are quickly resold at inflated prices to unsuspecting borrowers.

All transactions must be arms-length, with no identity of interest between the buyer and seller or any other parties participating in the sales transaction, including:

• Seller must hold title
• LLS’s Corporations and trusts must be established in accordance with state and federal law
• No evidence of previouse flipping within 12 months
• Evidence that property was marketed openly; via MLS, Auction, FSBO

If the sales price of the property is 20 percent or more above the seller’s acquisition cost, the waiver will ONLY apply if the lender meets the following conditions:

• Significant work has been done to the home {documented by a second appraisal verifying repair and rehabilitation have been completed to substantiate an increase more than 20 percent}
• In cases where no work has been done, the appraiser must provide explanation to support the increase since the prior transfer.
• A property inspection must be provided to the buyer prior to closing. {The lender may charge the borrower for the inspection.} The inspector does not need to be FHA approved, but must have NO interest in the property, must not receive compensation other than from the lender and may not be involved with the repairs recommended from the inspection. at a minimum, the inspection MUST include:

1. Property structure, foundation, floor, ceiling, walls and roof
2. Exterior, siding, doors, windows, any decks, balconies, walkways and driveways
3. Roofing, plumbing, all electrical, heating and A/C systems
4. All interiors
5. All insulation/ventilation systems as well as fire places and fuel burning appliances.

• The waiver does not apply to the Home Equity Conversion Mortgage {HECM} for purchase program.

The waiver is scheduled to be effective for one year, unless otherwise extended or withdrawn by HUD. If HUD discovers that there is a significant increase in mortgage defaults and claims attributable to the waiver, HUD may withdraw the waiver immediately.

The following exceptions to the 90 day flipping guidelines are still applicable and ramin unchanged from previous guidelines:

• Re-sales by employers to employees
• Builders selling a newly built home
• Sales by HUD of Real Estate Owned {REO}
• Inherited property
• Real Estate sales owned by Federal Agencies
• State and Federally chartered financial institutions and government sponsored enterprises {GSE – e.g. Freddie Mac, Fannie Mae, Bank foreclosures}
• Non-profit organizations approved to purchase HUD REO single family properties at a discount with resale restrictions http://www.Lhud.gov/offices/hsg/sfh/np/np_hoc.cfm
• Local and state government agencies and the instrumentalities of local governments approved by HUD to provide secondary financing. http://www.hud.gov/offices/hsg/sfh/np/np_hoc.cfm
• Presidential declared disaster areas {must be sold in the time frame the exception will be in effect and in the specific disaster areas} www.fema.gov/news/disasters/fema
• Lenders that have taken properties back in foreclosure
• Sales of previously foreclosed  abandoned properties and sold by “for-profit” & “not-for-profit” entities using funding with state & local government agencies under the NSP program.

The complete text of the Waiver is available on the HUD website at: http://www.hud.gov/offices/hsg/sfh/waivpropflip2010.pdf

Until next time……………

Blessings,

Tonya & Tifni

visit our website at www.boisehomes4u.com or contact us for any real estate needs or questions Tonya 208-860-1598 or Tifni 208-861-8295

Four strategies to make sure your home purchase goes smoothly. I’m sure by now you’ve done your homework, you’ve mapped out the area you want to live in, decided how many bedrooms you want, and number of bathrooms that will accomodate your needs, visualized the perfect master suite and you’ve met with your lender, now you’re good to go!!! Let’s do it!

If you think you have time on your hands, think again. The tax credit doesn’t run out until June so what’s the rush? If you’ve been out shopping with your Realtor and seen several homes you probably understand that your “perfect” home is out there and realized that it’s someone elses “perfect” home as well. While there are some great deals right now, there are also ready, willing and able buyers that may be a few steps ahead of you. Let’s not forget that the history making interest rates won’t be around forever either. You don’t want to get priced out of your dream home because you sat on the fence too long waiting for the right place and the right time scenario.  All this being said let’s make sure once you find your “perfect” home and you’re ready to make an offer that there are no surprises along the way. 

Here are four strategies that can expidite your closing.

1.  Make sure you’re liquid: When it’s time to make a down payment, homebuyers should make sure they have enough cash available. You’re funds should not be tied up in a stock portfolio, 401(k) plan or other investment that could delay the money for days.

Using gift money for a down payment is sanother potential snag for homebuyers. The bank underwriting your mortgage needs a paper trialto track the money’s origin, money that suddenly shows up in your account can raise a red flag. It won’t be a deal breaker for the transaction but it will slow it down.

2. Forget about short sales: A short sale occurs when a homeowner is no longer able to make their mortgage payments and owes more on his home loan that what it can get in the current market.

Although short sales are attractive regarding price, they can (and do) take months to close. So it you’re looking to qualify for the tax credit stay away from them.

3. Don’t go on a shopping spree before you close: And I mean DON’T! I’ve seen transactions fall apart at the closing table because buyers when shopping just days before they got to closing thinking they “needed” new furniture for their home or a new car for the new garage. YIKES! The other “don’t” on the list is stay away from making big purchases on your credit cards before you get to the closing table.

Making big purchases can trigger concerns because a buyer’s debt-to-income ratio is usually the most important factor lenders use to determine how much home they can buy. This ratio compares the amount you earn to the amount you owe (including, but not limited to, credit-card debt, student loans and car loans) Once you enter the loan application process, that ratio is set. If you’re in the middle of trying to secure financing buying a living room set for $5000 can throw off the ratio numbers.

4. Be aware of closing costs: Buyers should know in advance how much they are going to bring to the closing table. Also, be aware of the verbaige in your purchase contract, are you going to have a home inspection? Who is going to pay for it? Who is paying for the appraisal?Hold on to every dime until you get to closing, you don’t want to be short at the 11th hour.

until next time……..

Blessings

Tifni & Tonya

Visit our website for 24/7 market access www.BoiseHomes4u.com or contact us for any and all real estate questions or needs, Tifni 208 861-8295 or Tonya 208 860-1598

Pending Home Sales Down from Surge but Higher than a Year Ago . Contract activity for pending home sales fell after a surge of activity in preceding months to beat the original deadline for the first-time home buyer tax credit but remains comfortably above a year ago, according to the National Association of Realtors®.

The Pending Home Sales Index,* a forward-looking indicator based on contracts signed in November, fell 16.0 percent to 96.0 from an upwardly revised 114.3 in October, but is 15.5 percent higher than November 2008 when it was 83.1.

Lawrence Yun, NAR chief economist, said a drop was expected. “It will be at least early spring before we see notable gains in sales activity as home buyers respond to the recently extended and expanded tax credit,” he said. “The fact that pending home sales are comfortably above year-ago levels shows the market has gained sufficient momentum on its own. We expect another surge in the spring as more home buyers take advantage of affordable housing conditions before the tax credit expires.”

Buyers who have a contract in place to purchase a primary residence by April 30, 2010, have until June 30, 2010, to finalize the transaction to qualify for the tax credit of up to $8,000 for first-time buyers and $6,500 for repeat buyers.

“Many trade-up buyers, who have historically timed their purchase based on school-year considerations, will have to accelerate their buying plans if they need the tax credit to make a trade,” Yun said. Repeat buyers do not have to sell their existing home to qualify for the credit, but they must occupy the home they buy as their primary residence.

Yun added that mortgage interest rates cannot remain at rock-bottom levels for a sustained period and will likely inch higher in 2010. But the tax credit impact in the first half of the year and expected job growth impact in the second half will support home buying activity and absorb enough inventory to bring a rough balance between buyers and sellers. Home prices are expected to stabilize or even modestly rise as a result in 2010.

until next time……

Blessings

Tonya & Tifni

Visit our website for 24/7 market access www.boisehomes4u.com or contact us at 208 861-8295

The inforamtion provided in this blog was provided by the National Association of Realtors

VIEW the interview with Lawrence Yun

http://link.brightcove.com/services/player/bcpid60307618001?bctid=60305163001