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Idaho Short Sale Process

July 22, 2010 By Leave a Comment

Goal:  Avoiding Foreclosure

The following are the steps that you as a homeowner can anticipate in the short sale process.  This is a general outline of how the process occurs, however please note that lien holders can change the order of some of the steps.  Detailed below is the process our team uses to process a short sale.  For a brief overview please see. www.homeswithjosh.com and look under Short Sales

Pre-Listing

1.
Please contact Josh’s office for a brief consultation about short sales.  Josh or one of his team members will collect some basic information about your situation.
2.
A tentative appointment will be scheduled to answer questions and/or list the home for sale in the short sale process.
3.
Josh and his team will prepare a short sale packet which will be sent to you either via FEDEX, regular mail or email.  We provide a thorough packet of information in advance of the appointment so you have the opportunity to evaluate our process and have your questions answered in advance.  If what we send you and what we discuss prior to the appointment makes sense and you feel comfortable and confident to go forward with the short sale process, our appointment will be confirmed. The packet will include:
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Information about the short sale process.
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Market data on the value of your home in today’s market.
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Recommended short sale pricing.
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Listing contract and related forms.
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Property detail report from the county assessor’s office.
4.
The appointment.  Josh will either come to your house to receive the documents or they can be returned via fax or email. We can do listing appointments via telephone or email if necessary.
5.
Once we receive a signed listing agreement we will begin the short sale process.
6.
An authorization form will be submitted to your lien holder(s) enabling us to speak to them on your behalf.  Unless previously provided, the lien holder(s) will provide their short sale requirements when the authorization is received.

Marketing

1.
Your home will be listed immediately on the Multiple Listing Service.
2.
We will market your home through various affiliated web sites and all other applicable marketing strategies.
3.
During the marketing period we will receive offers and present them to you as they are received.
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Offers will be presented to you on an offers spread sheet.
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You will be able to see the net offers as they come in.  We highlight, in yellow, the current highest net offer.
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You will sign the purchase offer of your choosing.  We will advise you as to what appears to be the strongest offer.  We will encourage you to consider two important factors; price and the willingness of the buyer to wait for the short sale process to complete rather than back out in the middle of the process.
4.
You will select and sign the offer that is most likely to meet the lien holder(s) criteria for a short pay off of your loan.

Short Sale Processing

1.
After you select an offer it will be signed by you and presented to your lien holder(s).  This is the official beginning of the short sale processing phase.
2.
You can track your short sale offer, as it is processed, online at Short Sale Status.
3.
The offer and all documentation required by the lien holder(s) is submitted by our office to the lien holder(s).
4.
Documents go through a processing period and are assigned to a negotiator.  The lien holder(s) assign a negotiator to your file.  The negotiator will ultimately make the final decision about your case.  The negotiator will review your offer and present the offer to any investors into your loan.
5.
A BPO (Broker’s Price Opinion) or appraisal will be ordered by the negotiator.  This BPO is used to determine the value of your home and whether or not the net proceeds of the offer are sufficient to satisfy the investors and thus provide a short pay off of the loan(s).
6.
The negotiator will evaluate your financial situation to determine whether or not you qualify for a short sale.  The offer will be presented to the investors who are invested into your loan.  They will decide if your short sale is approved or not.
7.
The negotiator will report the response of the investors.  There will be one of three options:  Short Sale Approval, Short Sale Approval with Conditions or Denial.  If any other answer then Short Sale Approval is provided we will negotiate further on your behalf.
8.
After all negotiations are complete you will either accept or reject the terms of the short sale.
9.
Written short sale notification is delivered to the buyer’s agent and Escrow begins.

Escrow

1.
Escrows in short sales generally follow the same process as a regular escrow.  One difference is that the short sale approval has a “good through” date by which time the short sale must be finalized and escrow must be closed.
2. When escrow begins you will need to make plans to be moved out of the house by the close of escrow.

Josh Groesbeck

208-353-7131 or josh@homeswithjosh.com

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Idaho Home Buyers Out Early This Spring

February 1, 2010 By Leave a Comment

Most often we will see the spring buying take off in March and run through May. This year however if first time home buyers are looking to take advantage of the $8,000 tax credit and up to $6,500 for repeat buyers they must have their home under contract by April 30th 2010. The deal must be closed by June 30th 2010. Sales are really going to escalate in February and March with April being the month of a serious rush. My concern is that there are the repeat buyers out there that are not taking advantage of this golden opportunity or not realizing that the window is going to be open and shut really soon. My suggestion is if you are a move-up buyer then you better get moving because of trying to coordinate dates to close on multiple properties can be complex not mention there is about 4 months to make your move. My suggestion is to be one the Idaho home buyers out early this spring.  Check out www.homeswithjosh.com for more Idaho real estate information as well as to search the Mls.

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Home Buyer Tax Credit

January 30, 2010 By Leave a Comment

1. In some cases, you can use it as a down payment or for closing costs. For the most part, home buyers can’t use the tax credit as an automatic down payment, although “tax credit funds can be used for the basic down-payment requirement (3.5 percent) on an FHA-insured loan only when it’s handled through a state housing finance agency (HFA),” says Lemar Wooley, a spokesman for the U.S. Department of Housing and Urban Development.

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.

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The Home Tax Credit

January 28, 2010 By Leave a Comment

Time is growing short for buyers hoping to land a great deal before some key changes occure.

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-

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