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Bank of America gets caught with their hand in the jar and blames Countrywide.

But doesn’t Bank of America own Countrywide?  Yes!

When Bank of America took over Countrywide in 2008 during the worst housing crash since the Great Depression, according to Bloomberg, BofA absorbed Balboa Insurance.  Essentially, Balboa Insurance…now owned and operated by BofA, is insuring their own bad debt.

What does this mean?  Bank of America’s “Countrywide Loans” that have been defaulted against by homeowners are insured, meaning Bank of America is feeling no pain and actually is gaining from this type of bad debt. Meaning that BofA is in no hurry to sell bad debt.  That’s why there is “Shadow Inventory” and Short Sales are taking so long to approve for sale. There’s no hurry when your making money.

Why Bank of America is gaining on a defaulted loan?  It seems that the Federal Trade Commission (FTC) uncovered ”scamming” on behalf of  “Countrywide” last month.  Remember, Bank of America bought/took over, what ever you want to call it, Countrywide at the Federal Governments request.

What was the scamming?

Countrywide had established Balboa Insurance to cover their home loans gone bad.  In an effort to help defray these losses on bad loans, Balboa Insurance and Countrywide would over charge the now defaulted homeowner for any related services to the default…like mowing the lawns, maintenance of the home, painting, etc…yes, Countrywide in it’s need to make money, charged up to 2 times the amount back to the homeowner for these services.  This is in clear violation to FTC guidelines as it pertains to loan servicing.

So what?

Well, Millions and millions of dollars have been scammed from the clients that they hold a fiduciary responsibility. Kinda like Bernie Madoff screwing his own clients out of their money.   Well, it’s now 2 years later, and Bank of America “Countrywide” division has been caught red handed.  However, no one is being held responsible.  Why?

BofA was helping out the Feds by taking over the Countrywide catastrophe and with that comes immunity.  Above the law stuff…”you do us a favor, no one will suffer.”

Know that BofA has been caught, the new CEO, Brian Moynihan stated earlier this month that they have a “desire” to sell Balboa Insurance.  Desire?  What does that mean?

C’mon…let’s be real.  BofA makes tons of money on bad loans.  That’s why it takes so freakin’ long to get a BofA short sale approved!  That’s why there is “shadow Inventory”!

So what happens next?

As soon as CEO Moynihans “desire” is fulfilled and Bolboa is sold…it should open the flood gates to short sales and release of “shadow inventory”.

It’s good news…however, no one person is held responsible. No one goes to jail.

Do the Feds a “solid” and your protected!

Exiting Home Sales Down

Joshua Groesbeck

208-353-7131 or josh@homeswithjosh.com

www.homeswithjosh.com or www.idshortsale.com

The magazine is designed to appeal to a broad audience of outdoor, recreation and lifestyle enthusiasts. It speaks to everyone – from those who reside and work here to those who simply come for a visit.

Explore Idaho is more than just a list of outdoor activities, it’s about the people themselves who live here, many being descendents of those who settled here over the years in search of a better life – and found it.

The magazine reflects all the values that have long put the Gem State on a path of enduring grace and beauty. The pages personify an ever-growing number of people who regard Idaho as not merely a geographic locale, but also a state of mind and a way of life.

Explore Idaho is a hike in the Sawtooths, a wine tasting in Sunnyslope, a skiing or snowmobiling excursion to resort areas such as Sun Valley, Bogus or Brundage Mountain, or a rafting trip down the breathtaking Payette or Snake rivers.

Along the way, you’ll find out where to dine and where to stay, discover the state’s diverse arts, dining and culture scenes, and – most importantly – meet the people who shape Idaho’s identity.

source:IBR — Explore Idaho

If the home loan is handled through an FHA lender (and not an HFA), the tax credit can be “used to add to the down payment above the 3.5 percent required amount. It can also be used for closing costs,” says Wooley.

Many state HFAs are running or sponsoring programs that will use a tax credit for a down payment. These programs often place a second lien on the home as collateral to secure the eventual repayment of the tax credit funds. Some HFAs lend directly to home buyers while others work through networks of state-approved lenders. For a list of what state HFAs are doing, go to www.ncsha.org.

2. You don’t get a check at closing. Many homebuyers assume that the $8,000 is given to them at closing. Not true, says Winter Park, Fla.-based accountant David Keeler.

“Taxpayers need to wait until they’ve actually filed their income tax return to receive the tax credit,” says Keeler. “The homebuyer credit reduces one’s tax liability on a dollar-for-dollar basis, and if the credit is more than the tax you owe, the difference is paid to you as a tax refund.”

The IRS says first-time home buyers who purchased a home in 2009 can claim the tax credit on either a 2008 return, due April 15, 2009, or a 2009 return, due April 15, 2010. The credit may not be claimed before the closing date. But, if the closing occurs after April 15, 2009, a taxpayer can still claim it on a 2008 tax return by requesting a filing extension or by filing an amended return.

3. You don’t always get the full credit. “This is one of the biggest misconceptions out there,” says Maynor Perez, a real estate sales associate with Positive Realty in Doral, Fla. “If you pay $50,000 for a home, you will not get the full $8,000 tax credit.”
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In fact, the top credit for homes bought in 2009 is $8,000 ($4,000 for a married individual filing separately) or 10 percent of the residence’s purchase price — whichever is less. So, for a $50,000 home, the home buyer would receive a $5,000 tax credit. And, if you buy a house for $800,000 or more, you’re not eligible for the tax credit.

Later this spring, the federal home buyer tax credit — up to $8,000 for first-time buyers and up to $6500 for move-up buyers — is scheduled to expire.  Buyers must have their new home under contract by April 30th to receive these funds.

Mortgage rates may also bigin to climb soon.  In late 2008, the federal government began a $1.25 trillion campaign to purchase mortgage backed securities, driving borrowing costs lower.  The fed confirmed yesterday this program will expire in March.  Consequently, mortgage rates will rise anywhere from half a point to a full point.

We’ve had these low rates for a year and people think they are where they should be, but they are not.  Rates are artificially low right now due to the fed’s purchasing program.

When rates do move higher when the program expires, shoppers waiting for the absolute bottom of the housing market may regret their procrastination.  A slight increase in interest rates can erode any savings achieved through a low interest rate.

Also, FHA loans will become more expensive this spring.  Currently FHA loans account for more than 40% of all new mortgages being originates.  This spring the up front mortgage insurance premium on FHA loans will go from 1.75% to 2.25% this spring.

Take advantage of these tax credits and make 2010 the year you find your perfect home!

Call Dale Curtis at WaterStone Mortgage 208-484-8993 and tell him Josh Groesbeck of Trust Realty (208-353-7131) sent you-

Ada county and Canyon county have 242 bank owned properties and 262 possible short sale properties listed as of January 1, 2010. This news below may seem discouraging if you believe the glass is half empty, but if you look at all of these golden opportunities the glass is really half full. If you are one of many homeowners that have already are in a position to lose your home there are many opportunities to avoid foreclosure (Making Home Affordable Program-Short Sales) but you must be proactive seek a professionals help to navigate through this mess. Always know that the sun will rise tomorrow, you are not alone and time will heal.

On the other side if you are looking to purchase a home right now it very well could be the best time to get the home of your dreams in the neighborhood you most desire. $8,000 tax credit for first time home buyer’s, $6,500 tax credit for move up buyer’s – go to www.homeswithjosh.com for more information to qualify. Interest rates are still extremely low with talks that they are going to start moving up so my advice is to start your qualifying process now and be ready when your dream home comes on the market. This not just talk take a look at homes on www.homeswithjosh.com and see what I am talking about as I am quite sure you cannot deny there are some sweet homes just waiting for their new owners.

Call Josh Groesbeck 208-353-7131 for information about selling and buying Idaho real estate.

The housing market in the Treasure Valley has yet to bottom out, despite government incentives and record low interest rates for buyers.

“You read a lot of national data that says we have hit the bottom of the market,” said Charlie Nate, president of IdahoDataProviders.com, a Boise company that measures foreclosures in the Valley. “That’s just not the case.”

The month-to-month numbers weren’t bad. In Ada and Canyon counties, December foreclosure rates fell 9 percent from a month earlier, Nate said.

But the flow of distressed properties entering the housing market will keep pushing inventories up and prices down this year, Nate said.

High unemployment rates and a worsening default rate are partly to blame. So are the number of homeowners who are “upside-down” on their mortgages, which means they owe more on their mortgage than their home is worth, Nate said.

About 30 percent of all borrowers are “upside-down,” he said.

During 2009, there were 8,639 new foreclosures filed in Ada and Canyon counties, a 66 percent increase over 2008.

source: Idaho Stateman