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HAFA Guideline Update

March 31, 2010 By Leave a Comment

As we expected, the HAFA Guidelines are being improved…

Translation: HAFA = Streamlined, fast close- Help for troubled home owners

Here is an update from DSNews.com

The Treasury is also bumping up payouts for short sales and deeds-in-lieu under its Home Affordable Foreclosure Alternatives (HAFA) program set to take effect April 1. Servicer incentives for each short sale or deed-in-lieu have been raised from $1,000 to $1,500.

There is also a new second lien payoff schedule that allows servicers to increase the amount paid to subordinate lien holders who agree to extinguish the borrower’s secondary loan when a short sale or deed-in-lieu is reached on the first mortgage. Second lien holders will receive up to 6 percent of the outstanding loan balance, double the previous 3 percent cap. In addition, the incentive reimbursement available to investors for subordinate lien payoffs has doubled from $1,000 to $2,000.

Agents, this is huge. When HAFA was first announced we were all a little skeptical because there wasn’t any real financial incentive for the second mortgage lien holders. Now, with this recent revision…the seconds will certainly want to participate. Remember, if the home goes into foreclosure 99% of the time the seconds are wiped out….so, now they can actually recoup part of their investment.

Relocation assistance payments to homeowners who receive a short sale or deed-in-lieu have also doubled, to $3,000.

That revision was also expected..be sure to make it clear to you potential Short Sale sellers…they can now receive UP TO $3,000 to do a short sale (or DIL). If any of you aren’t 100% convinced that lenders (and the government) have made 2010 the year of the short sale the fact that sellers/ borrowers are literally being PAOD to do a short sale should convince you!

All these program enhancements come on the heels of new consumer protections that the Treasury announced this week would be incorporated into HAMP on June 1, including requiring servicers to evaluate all borrowers who’ve missed at least two payments and prohibiting foreclosure proceedings until it’s determined borrowers are HAMP-ineligible.

The Treasury noted in its policy FAQs that it will take time to get these new initiatives up and running. Some pieces, such as increased payments for short sales and deeds-in-lieu, will be put in place in the coming weeks, with the full set of new program initiatives available by fall.

Officials said no additional taxpayer dollars will be needed for the new program enhancements or the increase in incentive payments. It will all be fully funded through the Troubled Asset Relief Program (TARP), more specifically, with the $50 billion in TARP funds that has already been set aside for HAMP.

According to Diana Farrell, deputy director of the National Economic Council, with the add-ons announced Friday, the program will stem enough foreclosures to meet the president’s target of helping 3 to 4 million struggling homeowners through modifications, refinanced loans, and foreclosure alternatives.

NOTE: Most predictions expect there to be upwards to 15,000,000 foreclosures….so, best case if this program hit President Obama’s goal of ’saving 3-4 million from foreclosure’ its quit literally…a small drop in the bucket. Its going to be a long time before we actually see any sort of market recovery.

Farrell concedes that it’s not enough to avert foreclosure for all, with foreclosure risk estimates now climbing to 10 to 11 million, but it’s significant enough to “have a real material impact on the marketplace,” she told reporters.

“The purpose here is to deal with just enough of the overhang … to provide real help to those people for whom we believe foreclosure is preventable and not just kicking the can forward,” Farrell said.

IF YOU ARE FACING FORECLOSURE OR YOUR HOME IS WORTH LESS THAN WHAT IS OWED DON’T DELAY THIS PROBLEM IS NOT GOING AWAY ANYTIME SOON- YOU DO HAVE ALTERNATIVES TO FORECLOSURE AND WE CAN HELP!

Joshua Groesbeck 208-353-7131 or josh@homeswithjosh.com

Latest information about the real estate market www.homeswithjosh.com

If you have already missed payments or the writing is on the wall apply for your foreclosure alternatives at www.idshortsale.com

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Don’t Foreclose Do A Short Sale

March 30, 2010 By Leave a Comment

Don’t foreclose! Do a short sale

Short sales are the hottest thing going in the distressed-property market, and the trend is expected to get even hotter in coming weeks, when the government starts handing out cash to encourage lenders to close these deals.
“Banks have ramped up short sale approvals,” said Duane Legate of House Buyer Network, which connects short sellers with buyers. “They’re hiring a lot of the people who once worked in the mortgage-lending industry and moved them over to short sales.”
These transactions, where lenders allow homeowners to sell their houses for less than they owe, accounted for 17% of all residential real estate sales in February, up from nearly 13% in November, according to a monthly real estate market survey by Campbell/Inside Mortgage Finance.
And Bank of America (BAC, Fortune 500), the country’s largest mortgage servicer, has more than doubled the number of short sales it processed in recent months.
Elizabeth Weintraub, a Sacramento, Calif.-area real estate agent who handles many short sales, was amazed at how quickly a recent deal went through. “Bank of America approved it in 24 days,” she said. “That flipped me out.”
This is a huge change from even just six months ago when the short-sale market was stalled and most people would describe the process has real estate hell. Because lenders stand to lose so much on these transactions, they have been reluctant to make short sales happen, often waiting months before getting back to potential buyers.
“In the past, many short sales would never come to fruition and the ones that did averaged over half a year to complete,” said Chris Saitta, CEO of Equator, which produces short sale software.
“Things would just fall into a black hole and not come out again,” added Weintraub.
And even when banks did agree to the sale, the process could be further complicated if the original owner had a second mortgage.
In most cases, the first lender is repaid in full before any money flows to a second-lein holder. And because most distressed borrowers are severely underwater, there’s usually nothing left to send on. As a result, second-lein holders are left holding the bag and have been killing many deals.
But that has been changing. For one thing, banks realize that they make out far better financially with a short sale than a foreclosure. “The lenders lose 50% on a foreclosure and only 30% on a short sale,” said Glenn Kelman, founder of the real estate Web site Redfin. “And short sales offer a way to get distressed properties off their books quickly.”
And on April 5, lenders and mortgage investors will have even more incentives to offer troubled borrowers short sales instead of foreclosing.
Under the new Home Affordable Foreclosure Alternatives program, borrowers will earn a $3,000 “relocation incentive” and servicers will get $1,500 for handling a short sale.
The investors who actually own the mortgage notes will get $2,000 in exchange for sharing proceeds of the short sales with any second-lien holders. And, finally, those second lien holders will receive up to $6,000 for releasing their claims.
Lenders participating in the program must also determine the market values of properties early on and inform the owners of just what price they’re willing to accept. Then, if owners come back to the lenders with bonafide offers, they have to be accepted within 10 days.
Equator’s Saiita anticipates a short sale explosion in response to the new program. “The challenge will be handling all the volume,” he said.
The company has already tweaked its software, which 58 servicers use, to handle the new HAFA rules. And that should help reduce the time it takes to execute a sale, which currently averages 88 days.
The boom in short sales may accelerate the end to the  foreclosure crisis by cleaning out the overhang of borrowers in distress and replacing them with more stable homeowners.
Plus, these sales are better for distressed borrowers because their credit scores suffer less. Going through a foreclosure can knock 200 points off a FICO score, twice as much as the penalty for a short sale.

For more information about the Short Sale process visit www.homeswithjosh.com or call Josh Groesbeck direct 208-353-7131 and josh@homeswithjosh.com

Apply for Short Sale at www.idshortsale.com

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Real Estate Radio Program

March 26, 2010 By Leave a Comment

So I wanted to add this great real estate radio program to my real estate website. This is a very informative radio program that will update you on the latest real estate trends across the country.  Just press play and listen while you use my website www.homeswithjosh.com to research the market, read the latest blogs by Josh Groesbeck or look at all  available homes on the market in Boise, Eagle, Meridian, Star, Nampa, Caldwell, Middleton, Kuna  and all surrounding cities in Idaho. Of course to talk with Josh call 208-353-7131 or set up your appointment to view properties josh@homeswithjosh.com

Take a minute and let me know how I am doing providing all my customers and clients with information and products to help their real estate needs.

Thanks again!

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Short Sale Slide Show

March 25, 2010 By Leave a Comment
Here is a great slide show that will demonstrate the details of a Idaho Short Sale and what to expect. Once you have completed the slide show go fill out your Short Sale Application and submit. Call Josh with any questions 208-353-7131
View more presentations from mrjoshua.
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Year Of The Short Sale 2010

March 25, 2010 By Leave a Comment

Reasons why 2010 may be the Year Of The Short Sale-  Please read below and I hope this answers some of your questions about how you may qualify and what to expect. Of course feel free to call Josh Groesbeck 208-353-7131 or josh@homeswithjosh.com

Short sales – when a lender sells a property for less than the full amount owed on the mortgage – are notorious for being long and painful. Some realtors even refuse to touch short sales because of the uncertainty involved. In spite of the growing backlog of distressed homes, banks have been taking up to several months to respond to short sale  offers, often because they lack the staffing and know-how to process such sales faster. That is leaving many homeowners and their real estate  agents in an interminable waiting game.

But homeowners who are underwater and struggling to offload their homes through a short sale may get relief soon through Home Affordable Foreclosure Alternatives (HAFA). Part of the government’s Making Home Affordable program, HAFA is designed to incentivize borrowers and  lenders to avoid foreclosure. It takes effect April 5, lasts through Dec. 31, 2012, and is aimed at homeowners who are eligible for a loan modification but unable to complete the process.
What banks are doing

Already, some banks appear to be working to facilitate the short-sale process, perhaps in anticipation of HAFA. A JP Morgan Chase spokesman says the bank doubled its short-sale staff during 2009. And in response to the rise in volume, a Bank of America spokeswoman says the bank “increased the number of associates working in short sales to keep in line with the increased demand for short sales.”

Indeed, short sales jumped to 15.9% of home purchase transactions in January, from 12.4% in November, according to a monthly survey by research firm Campbell Surveys and Inside Mortgage Finance, a trade publication. Just in the last 30 to 45 days, some banks have significantly increased their staff handling short sales and the amount of short sales they’re approving, says Rob Lattas, a real estate attorney in Chicago who handles short sales. Typically, it’s taken anywhere from four to six months – and sometimes more – to complete one of these transactions. “We’re seeing short sales now come out between 30 and 60 days, which is crazy. We’re seeing banks being more cooperative,” Lattas says.
The realtor’s perspective

Realtors are echoing that sentiment. Jackie Hillman, a realtor with ReMax Premier Group in Tampa, Fla., says the short-sale transactions she handles are getting a bit easier, in part because lenders are more proactive. Last week Hillman sent a short sale listing agreement a client’s lender, usually the first step in the process. It usually takes a few days for the lender to even acknowledge they received the agreement. “But they called me the very next day and assigned me to a negotiator, which normally takes a couple of weeks,” she says.

“As soon as you tell [the bank] your client is interested in a short sale, they want to get the ball rolling. They realize they can’t make people wait around for six months – the owners might walk away,” Hillman says.

Read more: It’s Looking Like the Year of the Short Sale at www.homeswithjosh.com

HAFA changes

Under the HAFA guidelines, borrowers receive preapproved short-sale terms before listing the property (including the minimum acceptable net proceeds). Before, sellers submitted a buyer’s offer without knowing if the lender would accept the amount. “Now we will know what the bank’s threshold is before we go through this whole rigmarole,” says Lattas.

The loan servicer must respond within 30 days of a homeowner requesting a short sale. And they must respond within 10 days of receiving a sale contract as to whether they’ll approve or deny it.

The new rules also require the lender to forgive the seller’s mortgage debt (on their first mortgage). This is a promise that the bank will not pursue the seller for the outstanding balance on the mortgage.

And financial incentives include $1,500 for the borrower for relocation assistance and $1,000 for servicers to cover administrative and processing costs.

Real estate professionals are hopeful the new guidelines and incentives will make short sales easier to accomplish. “If the HAFA guidelines are actually followed, it’s a great thing for the short-sale marketplace. The biggest frustration I have as attorney is clients saying ‘I’m still waiting to hear from the bank.’ Now banks have 10 business days to say whether they’ll approve or deny the sale,” Lattas says.
Obstacles remain

Of course, even with the new regulations, things may still get held up.

One possible obstacle: If the current buyer for a short sale decides to terminate the purchase – say, because it’s taking too long – often the real estate agent involved in the sale ends up back at square one. They have to re-submit the short-sale package to the lender and are given another negotiator (the person who negotiates the sale on behalf of the lender) – essentially forcing them to start all over again, says Stephanie Fix, a realtor with ReMax Professionals in Denver.

Another potential snag involves second-lien holders. Typically, short sales are made additionally complicated when sellers have more than one loan on their property. HAFA requires second-lien mortgage holders to drop financial claims against borrowers exceeding $3,000 (they are often owed many times more than that).

These lenders must agree to release the lien for the transaction to close. But even with the $3,000 limit, they may hold the deal ransom and demand more from the first-lien holder or seller in exchange for releasing their claims. “A lot of these short sale deals have fallen through because of the second lien,” says Fix. “It will be interesting to see how the banks – the ones participating in HAMP – will follow these guidelines.”

Read more: It’s Looking Like the Year of the Short Sale www.homeswithjosh.com

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Q & A Idaho Short Sales

March 23, 2010 By Leave a Comment

Q: What is a Short Sale?

Answer: In a short sale, the lender agrees to settle the debt owed on the property for less than the full amount. “Settled” means that the lender is writing off the debt (which is why you get a 1099 after a short sale for the amount of debt forgiven) and that they are not going to go after you for the money they lost by filing a deficiency judgment in the future.

Q: How will I know if I will qualify for a short sale?

Answer: Simply go to www.idshortsale.com and fill out your Free Confidential Short Sale Application and we will immediately begin the qualification process. We have a very high close ratio with our short sale clients and will help you qualify.

Q: How will a short sale affect my credit?

Answer: This is a great question as there is a lot of misinformation on the internet about this topic. A short sale is recorded on your credit report as “debt settled for less than the amount owed”. This typically will result in a relatively minor hit on your credit compared to a foreclosure or late payments on your mortgage. I say ‘”typically” because it affects everyone’s credit differently. The more established your credit, the less of an impact it will have on your score.

The reason you often hear and read that a short sale will drop your credit 100 points or more, is that, many people, when they do a short sale, stop making their mortgage payments. If you stop making your mortgage payments for 4 months, regardless of whether you do a short sale or not, 4 months of missed mortgage payments will have a significant negative impact on your credit. In other words, it is the missed mortgage payments that have the big impact on your credit, not the short sale itself.

With this said, if you are already behind on your payments, you have already incurred the majority of the hit that a short sale will have on your credit. Doing a successful short sale at this point will insure that your debt is settled with your lender.

If you are current on your payments and can stay current throughout the short sale process, you will save your credit to a large extent.

Finally, if you do stop making your mortgage payments, there are various credit repair agencies that can repair your credit by removing late payments from your credit report after a short sale.

Q: Will I have to pay federal taxes on the money my lender loses in the short sale?

Answer: There are several different scenarios with regard to whether or not you will owe federal income taxes on the loss the lender takes in a short sale.

When you do a short sale, your lender is agreeing to settle the debt on the property for less than the amount they are owed. The IRS therefore allows them to write off this loss, which is why your lender will send you a 1099-C after the short sale.

The IRS considers “debt relief” to be income for tax purposes. In other words, if your lender writes off $50,000 on your short sale, they will send you a 1099-C for that amount, and you would include that when you file your income taxes. The “C” stands for “Cancellation of Debt” and the law says cancelled debt is taxable as income.

There are however a few exceptions that most people who do a short sale qualify for that exclude them from having to pay taxes on their short sale.

Thanks to the Mortgage Tax Debt Relief Act that George W. Bush signed into law in January of 2008, homeowners who do a short sale on their primary residence, and have a purchase money loan (in other words, they have not pulled cash out of their home with a cash-out refinance) pay no taxes on the loss that their lender incurs in a short sale.

Homeowners who have pulled out cash from their home but have put that money back into their home to “substantially improve” their home, also are excluded from taxes on the short sale.

All other short sale scenarios – if you pulled cash out on your primary residence but spent it something other than upgrading your home or if you are doing a short sale on a second home or investment property – result in a taxable event unless you qualify for the “Insolvency” exclusion.

The IRS does not require you to pay taxes on the loss the lender takes in a short sale if, at the time of the short sale, you are insolvent. Insolvency means your debts (including your mortgage) exceed the value of all your assets. In other words, if, at the time of the short sale, you have more debt than you do money or assets, you are considered insolvent.

Many people who find themselves facing a short sale are in exactly this situation and are thus excluded from paying taxes on a short sale. We recommend you check with your CPA or accountant or go to the IRS website and look up IRS Form 982, which is the IRS form for debt relief and short sales. The IRS gives an explanation of “Insolvency” on this form.

Finally, the time period for The Mortgage Tax Debt Relief Act was originally only slated to go until the end of 2008, however it has now been extended to the end of 2012.

Q: Can my lender go after me for the money it loses in the short sale?

Answer: The point of a short sale is to get out from under the debt of the mortgage. This is why your lender will send you a 1099-C after the short sale. The “C” in “1099-C” stands for “Cancellation of Debt.” Your lender cannot write off their loss on their corporate taxes, send you a 1099-C so you have to pay taxes on the loss, report the short sale as a “settled debt” on your credit and then turn around and go after you for the money.

If you hire and inexperienced short sale agent or negotiator who does not negotiate a full release from your lender, then, yes, you could be liable for the money the lender loses in a short sale or end up being forced to sign a promissory note to close the deal.

We do not ever recommend that our clients sign a promissory note or close escrow without a full written release from their lender(s).

Q: What if I have a first and a second loan on my property with 2 different lenders (or the same lender)?

Answer: Most people that we do short sales for have a first and a second loan, often with 2 different lenders. For the short sale to reach a successful close of escrow, both lenders have to approve the short sale and agree to settle the debt.

It is important to note that both lenders have a vested interest in doing this. The lender with the first loan does not want to foreclose, and therefore is willing to give a little money to the second in order to get them to agree to the short sale.

The second lender will get nothing if the first forecloses, so with the attitude that something is better than nothing, they will agree to take a fraction of what they are owed in order to avoid getting absolutely nothing.

Q: What is the difference between a recourse and a non recourse loan?

Answer: In general, a purchase money loan is considered to be a “non recourse” loan, while a “cash out” loan is considered to be a “recourse” loan.

The difference between these two loans is that in a “recourse loan” the lender technically has recourse to go after the borrower for the money they lose in a foreclosure. I say “technically” because, for this to happen, the lender has to file a judicial foreclosure.

Q: How will I know that I am being released from the debt?

Answer: It will be stated clearly on the bank’s short sale approval. Your lender will state in plain English (though in different verbiage depending on the lender) that they are “releasing the lien”, “accepting a short payoff to satisfy the lien”, “reporting the sale as a settled debt to the reporting agencies”, “issuing a full satisfaction of the mortgage”, “not pursuing a deficiency judgment”, or some other variation that states they are settling the debt for less than what they were owed.

Further, your bank will issue a 1099-C to you, the borrower, after the short sale, confirming that the debt has been written off and is settled. Your lender cannot write off the debt, issue you a 1099-C & then go after you for the deficiency.

Q: What are the advantages of a short sale vs. letting my home go to foreclosure?

Answer: The primary advantage to doing a short sale vs. walking away and letting your home go to foreclosure is that in a short sale the debt is settled and you no longer owe the bank any money. If your home goes to foreclosure, you may still be liable for the deficiency in the event that the bank files a judicial foreclosure.

A secondary (but still very important) advantage is that in a short sale, your credit takes much less of a hit compared to a foreclosure. The impact on your credit will vary depending on how established your credit is at the time of the short sale or foreclosure.

Finally, Fannie Mae & Freddie Mac revised their guidelines in August of 2008 with regard to how they view borrowers who have filed bankruptcy, gone through foreclosure or done a short sale. Through these new guidelines, they are in effect severely penalizing those who go the route of foreclosure or bankruptcy, and rewarding or encouraging those who do short sales, which they view as the borrower doing the responsible thing in light of the circumstances.

Per recent Fannie Mae / Freddie Mac guidelines, borrowers who file bankruptcy or go through foreclosure have to wait up to 7 years to buy another home.

By contrast, the new guidelines stipulate only a 24 month waiting period after a short sale, so borrowers who do a short sale can buy again in just 2 years.

Q: Are there any advantages to letting my home go to foreclosure vs. doing a short sale?

Answer: I have yet to hear a coherent argument for letting your home go to foreclosure vs. doing a successful short sale. Depending on whether you have a recourse or non-recourse loan, when you let your home go to foreclosure you either run the risk of being liable for the deficiency amount or liable for the income taxes on that loss.

Secondly, your credit will drop up to 400 points and you will not be able to buy a home or get any decent credit for up to 7 years.

Compare this with a short sale, in which the lender agrees to SETTLE the debt for less than the amount owed. If you have recourse loan, you may be liable for income taxes on the lender’s loss (just as in a foreclosure) but you will not be liable for the deficiency (and if you qualify for the “Insolvency” exclusion, you will avoid the income taxes as well).

Further, the loss that the lender takes in a short sale will be MUCH LESS than the loss the lender takes at the end of the foreclosure process. The foreclosure process takes months & months, at the end of which the lender has to process the property through its overwhelmed system (another 3 -5 months) and then put the property back on the market, all while the market continues to drop.

Finally, the impact on your credit from a short sale will be significantly less than with a foreclosure and you will be able to buy again within 2 years, compared to up to a 7 year waiting period to buy a home after a foreclosure.

Q: How much will a short sale cost me?

Answer: A short sale costs the seller nothing – the lender pays all closing costs, escrow fees, commissions etc. The lender may also pay any outstanding property taxes.

Q: How long will a short sale take?

Answer: The short sale process typically takes about 4 months, start to finish. It can take longer depending on how backlogged the lender is. You can live in the property for the entire duration of the short sale or you can move out whenever you wish.

Q: Do I need to be behind on my payments to do a short sale?

Answer: No. This is a common misconception. You do not need to be behind on your payments or have been late on a payment to do a short sale although the lenders are more motivated to do the short sale if you are not making payments.

Q: Should I file bankruptcy? Will it allow me to keep my home? I’ve heard the lender cannot foreclose if I file bankruptcy.

Answer: There are 2 types of bankruptcy commonly used by individuals – Chapter 7 (“Fresh Start”) and Chapter 13 (“Wage Earner”). Chapter 7 can enable individual filers to wipe away debts such as credit card and medical bills so they can continue to make their mortgage payments.

Chapter 13 involves setting up a 3-5 year repayment plan to repay your debts. Chapter 13 requires that you are earning a steady income, as you will be repaying all of your debt. Both have a very negative impact on your credit and remain on your credit report for 10 years.

Because of the new 2005 bankruptcy law, which raised the bar for people to qualify for Chapter 7 “fresh start” bankruptcy proceedings, fewer and fewer people pass the “means” test to qualify for Chapter 7 and for this reason can only qualify for Chapter 13 bankruptcy (a 3-5 year repayment plan).

While both Chapter 7 and Chapter 13 can temporarily delay foreclosure proceedings, neither will allow you to keep your home unless you can bring your mortgage current.

If you would like more information on whether a bankruptcy is right for you, we recommend you consult a competent bankruptcy attorney, as we are not attorneys and do not dispense legal advice. Call our office – we can recommend several.

Joshua Groesbeck 208-353-7131 or josh@homeswithjosh.com

www.homeswithjosh.com

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North End Boise Idaho Bank Owned Home

March 22, 2010 By Leave a Comment

Are You Kidding Me! Check out this North End Boise, Idaho Bank Owned Home located in the much desired historical district. Built in 1905 it has all kinds of character yet updated to today’s standards. To view this home online simply go to www.homeswithjosh.com search the Intermountain Mls and enter this number 98431869

To set up your private showing call Joshua Groesbeck direct at 208-353-7131 or josh@homeswithjosh.com

Very charming unique home in a historical disctrict of Boise. Very close to parks and walking distance from everything. Home is bright and has the North end feel. Back deck would be great for a hot tub or summer bbq’s. $134,500 :-D

www.homeswithjosh.com

source:IMLS  and ReMax Capitol City

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Still Time For Home Buyers Tax Credit

March 21, 2010 By Leave a Comment

There is still time to get the home buyers tax credit. Below you will find how to claim your $8,000 First Time Home Buyer Tax Credit also don’t forget about the $6,500 tax credit for exiting owners. This may be a shameless plug but if you can or interested in buying you should really look at the benifits.

  1. (of course) $8,000 to you the home buyer from the IRS. Kind of cool
  2. Outstanding interest rates on home loans.
  3. Add the really low home prices and you have something that has never been around before, most likely the best time to purchase a home.
  4. Buy a home in areas that you never though would be affordable!
  5. Call Josh Groesbeck 208-353-7131 today and he can help you find financing and a home- You now have the ingredients for your home owning dreams and the time is Now so take advantage.

*  The $8,000 tax credit is for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
* The tax credit does not have to be repaid unless the home is sold or ceases to be used as the buyer’s principal residence within three years after the initial purchase.
* The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
* The tax credit applies only to homes priced at $800,000 or less.
* The tax credit now applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.
* For homes purchased on or after January 1, 2009 and on or before November 6, 2009, the income limits are $75,000 for single taxpayers and $150,000 for married couples filing jointly.
* For homes purchased after November 6, 2009 and on or before April 30, 2010, single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.

The $6,500 Move-Up / Repeat Home Buyer Tax Credit at a Glance

* To be eligible to claim the tax credit, buyers must have owned and lived in their previous home for five consecutive years out of the last eight years.
* The tax credit does not have to be repaid unless the home is sold or ceases to be used as the buyer’s principal residence within three years after the initial purchase.
* The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $6,500.
* The tax credit applies only to homes priced at $800,000 or less.
* The credit is available for homes purchased after November 6, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, the home purchase qualifies provided it is completed by June 30, 2010.
* Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.
Thank you for reading the real estate blog and please fee free to contact Josh Groesbeck 208-353-7131 direct for all of your real estate needs.

Be sure to visit www.homeswithjosh.com to search the Intermountain Mls and view all homes and land that are on the market. Call or email josh@homeswithjosh.com to set up appointments to see properties located in Boise, Eagle, Meridian,  Nampa, Caldwel, Middleton,Star and Kuna.

Source: CNNMoney.com

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Bank Owned Home Meridian Idaho

March 19, 2010 By Leave a Comment

Oh my gosh check out this REO-Bank Owned home in Sienna Creek- Meridian, Idaho 83646. Go to  www.homeswithjosh.com and put in this  Mls# 98431033

This home is located in a great central location that offers you quick access to Boise,Eagle,Meridian or Nampa.

Across the street from the community park. Tile surround soaker tub in the master & dual sinks. North facing back yard for cool summer evenings. Upstairs laundry. Corner gas fireplace in the family room. Neutral colors & decor, move in ready. Home is a 4 bedroom 2.5 bath 2012 sqft with a 3 car garage. Larger backyard that is fully fenced including large patio for those summer barbecues.  Offer at $152,900. I wouldn’t expect this one to last long especially with the first time home buyers tax credit of $8,000 going away. Check out the home on my website then call Josh 208-353-7131 or email josh@homeswithjosh.com to schedule a your showing.

Source: Intermountain Mls and Coldwell Banker Tomlinson Group

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Buy Idaho Homes Now

March 19, 2010 By Leave a Comment

Facts you want to know!

Thinking of possibly buying a new home or existing home?  The good news, it’s definitely a buyer’s market.  But as these facts will tell you, great inventory will be picked over and the opportunity to get a great home for a great value will be lost, simply by waiting too long.
Now’s the time to buy.  Here’s why:

  • First-time home buyers are now eligible for a $8000 tax credit* that does not have to be paid back. 
  • Eight years ago, interest rates were above 8%.  Today, interest rates are as low as 5% on a 30-year FHA fixed mortgage.”* Compared to 8% seen in early 2000s, a rate of 5% would mean a monthly savings of approximately $393 (principle and interest payment) on a $200,000 mortgage. 
  • Due to market fluctuations, interest rates are subject to change at any time and without notice. Interest rates are also subject to credit and property approval based on secondary market guidelines.
  • IHFA’s Down Payment Assistance Programs:  Eligible borrowers may qualify for one of two Down Payment Assistance Programs available. Borrowers must meet certain eligibility requirements in order to qualify for funding down payment or closing costs assistance.
    1.  $20,000 IHFA’s Down Payment Assistance Program:  This is a deferred loan program available for borrowers with less than 80% of Area Median Income (AMI).
    2.  Good Credit Rewards Down Payment and Closing Costs Assistance:  This down payment assistance program offers a second mortgage for up to 3.5% of the first mortgage that can be used for down payment and closing costs. The second mortgages are fixed rates over 30-years making the monthly payment very low so as a borrower you can easily qualify for the loan amount you need. Also this program allows you to keep your savings, which might help you if you have unexpected expenses after you move into your new home. To learn more about these programs, please check read blogs on www.homeswithjosh.com today.
  • Average home prices in Ada and Canyon Counties have dropped to where they were years ago.
  • Housing affordability is at record levels.  Lower prices and record-low mortgage rates have combined to make homes more affordable than in any time in recent history.
    Source: probuilder.com  “Conquer Customers’ Fear”
  • BUILD NOW. With the decline in construction costs, labor and material costs, land prices and more, building a home costs much less than it has in years.  Now is the time to consult with your builder to build your dream home TODAY. Plus, enjoy some peace of mind when you receive your one-year builder warranty at closing. 
  • Buying property now…is a smart play.  Of course, any financial decision (even doing nothing) involves risk.  But today’s financial conditions make buying real estate today and holding it long term, as part of a diversified financial strategy, is something to consider.
    Source: David Bach, financial coach and best-selling author  of “The Automatic Millionaire Homeowner”™
  • Housing inventories have been moving lower in recent months, dropping by 1208 units (Ada) and 440 units (Canyon County) in the last 6 months.
    Source: intermountainmls.com

Search the Mls now    www.homeswithjosh.com

source: Intermountain mls and Buy Idaho Now

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