09/04/2010 - Moving vs. Remodeling

Moving can be a daunting prospect, but it can provide a number of benefits. Remodeling, on the other hand, can also be challenging but may be all you need to help your current home suit your needs. If you�re on the fence and would like some guidance, then consider the factors provided below. Decide the importance of each one to help determine whether a move is right for you! Read more..... [more...]


09/04/2010 - Bad economy = Good mortgage

QUESTION: Why is bad economic news typically good for mortgages�and vice versa? ANSWER: There's actually a pretty simple explanation for this seemingly strange phenomenon. But, you first need to understand a couple of important financial concepts: 1. Big money managers � who are always in search of higher returns � avoid holding onto cash. So they invest in both Stocks and Bonds. 2. Home loan rates are actually based on the performance of Mortgage Backed Securities (MBS), which are a type of Bond. When we put those two facts together, we begin to understand the relationship between bad economic news and good home loan rates. Here�s why: Whenever the economy is on fire and there are good economic reports along with positive economic news, investors tend to put more money into Stocks. That�s because Stocks are more risky, but they generally offer higher returns. To do this, however, investors must remove some of their money from less-risky Bonds. This decreased demand in Bonds causes Bond prices to w [more...]


07/28/2010 - AVOID FORECLOSURE SCAMS

Red Flags for Foreclosure Rescue Scams If you are at risk of or in foreclosure, you should be on the lookout for foreclosure scams. Here are some of the red flags to watch out for: � Asks for money upfront before providing any service � Instructs you not to contact your lender, lawyer, housing counselor, family, friends, or others � Asks for mortgage payments to be made directly to his or her company or a bank account set up by that person, rather than your lender. � Requires payment only in the form of cash, cashier�s check, or wire transfer � Promises to stop the foreclosure process, no matter the circumstances � Advises you to transfer your property deed or title to his or her company � Offers to fill out paperwork for you � Asks for something to be done immediately and without delay. This includes pressuring you into signing paperwork that you have not had the chance to read thoroughly or do not fully understand � Encourages you to lease your house and buy it back over time [more...]


07/24/2010 - FIVE SHORT SALE MYTHS - BUSTED!!!!!

If you want to truly understand the stress, successes and comments of a short sale.... read more at Trulia

 

Common short sale myths once evidenced widespread confusion about what a short sale is - mostly misconceptions that they are quick, or faster than “normal” real estate transactions.  In reality, the “short” in short sale has nothing to do with timing. Short sales usually take many multiples of time longer than traditional real estate deals - running anywhere from 3 to 8 months-plus, on average, from contract to closing!

The only thing short in a short sale is the sales price - it is less than, or “short” of, the amount the seller would need to pay off all the loans and other outstanding obligations (tax liens, delinquent HOA dues, etc.) against the property. In these situations, unless the seller is willing to write a check to make up the difference, their lender(s) must agree to forgive the shortfall in order for the sale to close.

But most short sale buyers - and sellers - know this stuff by now.  With one in four homeowners in America owing more on their homes than they are worth, short sales won’t be going anywhere for a long time to come.  And the more people get involved in a short sale transaction, the more confusion and misunderstandings result. 

Here are 5 of these “next-generation” myths about short sales, and the facts to shatter them:

Myth #1: That there is anything typical, standard or normal when it comes to getting a short sale approved.

Fact:  There’s no such thing as “normal” in a short sale.

Some of the most frequently asked questions in the Trulia Voices Community include things like:


Despite the recent goverment “streamlining” efforts that promised to impose a set of standards most banks would follow in processing short sales, it’s still a black box experience for most buyers and sellers.  Buyers submit their offers, sellers sign them and hand over all their financials to their listing agent who submits it all to the bank - and then often no one hears anything back for a few months, if ever.  Other times, the whole thing is approved in a matter of weeks (though this is much less rare).

The bank is in the power position, and can respond to your offer however they want. They may counter at a much higher price and demand a cash payment from the seller.  Or not.  They may take weeks, or they make take six months.  They may approve a way-below asking offer, or require a hundred thousand over the asking price.  Forget the idea of standard, when it comes to a short sale.

Hint: short sale listing agents who have done a lot of recent, successful short sales with the same bank do often have insider knowledge that is the closest thing to a rule of thumb over what any individual bank’s practices are. If you’re a buyer, prioritize short sales that are listed by short sale masters - your agent will know who they are.  If you’re a seller, ask prospective listing agents for a list of short sales they recently closed, including which bank(s) were involved.


Myth #2:  It’s smarter for homeowners to walk away than to short sell their homes. 

Fact:  Increasingly, I’m hearing those who own upside down homes ask why they would bother with a short sale, when they could just walk away with much less effort and drama.  The reality is that walking away and letting your home go to foreclosure is an extremely serious, personal decision - the wisdom of which varies dramatically owner to owner and state-to-state.  Some states allow lenders to sue homeowners who default on their mortgages, and impose state taxes on the mortgage debt cancelled out in a foreclosure, sometimes totalling tens of thousands of dollars.

Other homeowners’ family and financial plans would be impaired much less by a short sale than by a foreclosure.  For still others, it’s pretty much a wash.  For everyone, though, it is faster to recover your credit and ability to take out another mortgage on a new home after a short sale than after a foreclosure.

Given that a short sale costs a seller little or nothing except some time and effort, in many instances it is smarter to make the effort to short sale than it is to walk away.

Myth #3: A short sale is the same as a pre-foreclosure.  

Fact: A short sale is a home being sold for less than what is owed on it. A pre-foreclosure is a home that is in some stage of the foreclosure process because the owners are behind on the mortgage payments.  Many short sales are pre-foreclosures, because the owners stopped making payments when they put the home on the market, either because they can’t afford them, they are simply done with the property and don’t see a need to continue paying on it, or because they feel the bank is more likely to approve their short sale application if they are in default on their loan (a position many experienced short sale agents argue is true).

But not all.  Remember, nothing is standard when it comes to short sales. Short sales are closed every day on which the seller is still in good standing on their loan - these are mostly the short sales of owners who elect this strategy out of a desire to maintain their credit as much as possible, but have to move for work or family reasons.

Buyers should not assume that every short sale will come on the market later as a foreclosure; they should inquire as to any foreclosure notices against the property, and keep track of those time frames.  Many a buyer has been surprised when the bank auctions a property they are in contract to buy.

Myth #4:  The the buyer’s broker - or even the buyer’s offer - has much to do with getting a short sale approved.

Fact: Writing a clean, well-qualified offer is important to getting a short sale seller to believe that a buyer will hang into the short sale for the duration so they will sign the contract. However, the buyer’s offer and agent have little, if anything, to do with whether the seller’s bank green lights the deal, as needed to close it.

While the bank obviously cares about the price you offer, even that’s not as important as several other factors, including:



Myth #5.  That the bank “can’t” do X or “has to” do Y. 

Fact: The seller’s bank in a short sale is being asked to waive debt that they are legally owed. They have the absolute right to simply refuse entirely to accomodate this debt forgiveness request. However, if they do choose to waive some or all of the shortfall, they also have the right to place whatever conditions on that waiver. They can ask for more money from the seller - or the buyer (and often do). They can ask the agents to reduce their commissions (and often do that, too).  They can refuse to pay various closing costs, if they want.  And the buyer or seller can counter, accept or refuse any or all of the bank’s demands, too, but know that the banks do have the right to place whatever conditions on the short sale they want.  After all - he, she or it who has the cash (or the mortgage, in this case!) makes the rules!


Psst - you should follow Trulia and Tara on Facebook, too!
So, why buy a short sale?  With all the hassle, there are still some great deals to be had.  In many cities, most homes on the market are short sales, so if you rule them out, you may never find a home. 

Click on the link to read alllllll the comments.  We have something to talk about!

http://www.trulia.com/blog/taranelson/2010/07/5_new_short_sale_myths_-_busted#c41202

 

[more...]


07/09/2010 - Meridian, Idaho Ranks #8 in Family Circle's: 2010 Best Towns for Families

Family Circle

10 BEST TOWNS FOR FAMILIES:  2010

Meridian, Idaho

Population: 45,295
Median Income: $66,888
Median Home Price: $177,000
Households with Children: 47%
Student/Teacher Ratio: 20:1
Great Schools Rating: 7

http://www.familycircle.com/family-fun/money/10-best-towns-for-families-2010/?page=8

[more...]


06/22/2010 - Homebuyer's Tax Credit Closing Date Extension

The Senate has adopted Senator Harry Reid's (D-NV) amendment to the pending jobs and extenders legislation (HR 4213) that would extend the closing date for the homebuyer tax credit from June 30, 2010 to September 30, 2010. The amendment would apply only to purchasers who have satisfied the April 30 binding contract rule for the $8000 and $6500 tax credits. The amendment creates no new eligibility for the credit. Once through the Senate, the bill must go back to the House for their approval before obtaining the President's signature. While the timing remains uncertain, completion is expected sometime next week. Congress will be in session during the weeks of June 21 and June 28, so votes on the legislation are still possible before the June 30 deadline. [more...]


06/04/2010 - A Pleasure To Be Around.....

complainless: (adj.) 1. to be free of complaints 2. a pleasure to be around Remember, ... Your words move others. Your words move you. Let yours send everyone in the right direction as we kick off the first salesweek of the summer season... To be ComplainLess... Be aware. Recognize your typical paths to complaining - what (who) sparks your tendency to gripe. Minimize your exposure to them (eliminating those 'sparks' altogether may not always be realistic or the best thing). Know that your grumbling is a complete waste of energy. Be thankful. Regularly reflect on all the good in your life (people, opportunities, things). Understand and enjoy how lucky you really are. Be entitled to nothing. Pause before you begin. Clip a complaint as you feel it coming. Put a smile or thoughtful statement in its path. Blame no one. Blame nothing. Be accountable. Focus on solving problems rather than having them. Set the example for others and recommit when you slip. Care for yourself and create a positive hab [more...]


06/03/2010 - Myths about buying a Foreclosed property

Top 10 Myths About Buying a Foreclosure Trulia.com and RealtyTrac recently surveyed US adults to get some insight into what people *think* is involved with buying a foreclosure. Here are the Top 10 Myths that came up, and the facts to set the record straight: 1. Foreclosures need a huge amount of work. 92 percent of consumers expressed that if they bought a foreclosure, they would be willing to make home improvements after they closed the deal, with 65 percent being willing to invest 20 percent or less of the purchase price. Although stories of foreclosures missing plumbing and every electrical fixture are very memorable, many foreclosed homes need only the (relatively inexpensive) cosmetics that many new homeowners want to customize no matter what kind of home they�re buying: paint, carpet, etc. 2. Foreclosures sell at massive discounts, compared to other homes. Almost every member � 95 percent � of the surveyed group expected to pay less for a foreclosed home than for a similar, n [more...]


05/19/2010 - Want to be a Tourist in Boise... Looking for a new Restaurant.... Read for some GREAT ideas!

With escalating gas prices and perhaps an increasing desire to watch the budget and stay a bit closer to home, there's a great option available to those who want to have a sense of adventure without traveling very far: playing 'tourist' in your own town. Even if you do have glamorous travel plans on the radar for the year ahead, playing tourist in your own town offers a chance to have some fun and see your usual surroundings in a brand new way. All it takes is the intention to do it, and a sense of fun and adventure. Almost every locality has certain facets that make it unique: the natural environment, historical sites, tourist attractions, walking trails, hometown diners, architecture, or quirky local treasures. When you decide to play tourist in your own town, you set out to discover some of the things that you might otherwise take for granted. Try setting aside a day every once in awhile to learn more about the lesser known facets, or experience familiar ones in a new way. You'll not only gain a greater [more...]