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Are Boise Home Values Increasing?

October 13, 2011 By Leave a Comment

Are Boise home values increasing? Boise ranks in top 15 cities that listing prices are rebounding which is a good sign. As our market is starting to find traction the same problem is still there, does 10% increase in list prices equate to actual sold prices and does the 10%  really help the vast majority that are under water on their mortgage by much more? If you are experiencing hard ship for what ever reason and are in fear of foreclosure please don’t delay and call Idaho’s top Short Sale Agent Joshua Groesbeck 208-353-7131 or visit www.homeswithjosh.com or www.idshortsale.com

 

http://realtormag.realtor.org/daily-news/2011/09/23/15-cities-where-listing-prices-are-rebounding

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Changes to the HAFA Program

September 24, 2011 By Leave a Comment

The Treasury Department took action in December eliminating some rules it said have held back short sales through the Home Affordable Foreclosure Alternatives program.

HAFA was launched in April 2010 to provide an incentive to servicers and investors for pursuing short sales and deeds-in-lieu of foreclosure. The program was designed for homeowners who fell out of the Treasury’s Home Affordable Modification Program and was touted as a new standard for short sales.

But both HAFA and HAMP have struggled. The Treasury has spent only $4.3 million through HAFA, inducing roughly 661 short sales since the program launched, according to the Congressional Oversight Panel, the Troubled Asset Relief Program watchdog.

With such low numbers, the Treasury has eliminated rules that have constricted eligibility for HAFA. Among them, servicers are no longer required to verify a borrower’s financial information or determine if the borrower’s total monthly mortgage payment exceeds a 31% debt-to-income ratio. Servicers still must obtain a signed hardship affidavit.

“While this requirement has set the standard for mortgage affordability under HAMP, it is not as important for homeowners ready to transition out of their home,” a Treasury official said. “Eliminating this requirement further streamlines the process for homeowners applying to the program.”

In order to get more second-lien investors to clear short sales, the Treasury changed how servicers pay out to these holders. Before, the second-lien investor had to agree to accept 6% of the unpaid principle balance owed to them, up to $6,000. But the new guidelines eliminate that 6% rule. Now, servicers on behalf of the investors determine the amount or percentage of the unpaid principal balance of the second lien to be paid to each holder.

However, the cap still remains at $6,000.

The Treasury also directed servicers to grant borrowers who request consideration for HAFA the same timeline as those who are approached by the bank. Now, all borrowers must receive a short sale agreement no later than 30 days after request.

The Treasury said it will begin reporting official HAFA numbers in the first quarter of 2011.

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Are Short Sales The New REO

June 22, 2011 By Leave a Comment

I have been helping a lot of distressed home owners for the past couple of years and the link below explains what I have been experiencing. Banks are starting to realize that the Short Sale are most of the time the best route to take. A Short Sale here in Idaho will help stop the downward trend of home prices also keeping homes from becoming more distressed. (i.e. – a beat up home is a beat down home price)

If you or someone you know is needing help with their distressed home please contact Josh Groesbeck 208-353-7131 or www.homeswithjosh.com

http://kcmblog.com/2011/06/22/are-short-sales-getting-easier/

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Waiting To Buy A Home

April 12, 2011 By Leave a Comment

Buying a home is a personal decision that is usually the single largest investment of a lifetime.  This real estate downturn is now bigger than the great depression, fact.  Prices are soft but there are still a lot of reasons to be very serious about shopping for your future home.  If you are sitting on the fence waiting to time the market looking for the absolute bottom please continue to read.  The cost of your home loan is going to go up and that is going to affect you more than a sticker price on your home. Joshua Groesbeck 208-353-7131 or josh@homeswithjosh.com

Interest Rates Are Increasing

Interest rates have increased almost 3/4 of a point in the last six months. Most experts expect rates to continue to increase through the year. Interest rates along with price determine the overall cost of a home. Even with prices softening, if interest rates rise, it may be less expensive to buy now rather than wait.
The 30-Year Mortgage May Disappear

There has been much debate regarding government’s role in providing support for homeownership. There are several experts who believe If Fannie Mae and Freddie Mac’s roles are eliminated, or even limited, it may be the end to the 30-year mortgage. This concern is addressed in MSN Real Estate’s Is it curtains for the 30-year mortgage?
QRM Requirements Could Be Much More Stringent

Here are proposed changes to the requirements for a ‘qualified residential mortgage’:

* Certain mortgage types would be eliminated
* You would need to put a minimum of 20% down
* You would need a minimum 690 FICO score
* The ratios of income to both the mortgage payment and overall debt would become much more conservative (28% and 36%)

There would be loans available to purchasers who don’t qualify under the new rules. However, they will probably be more expensive to the buyer (both in rate and costs).
Rents Are Expected to Increase

The supply of available rentals is decreasing and the demand is increasing. That will lead to an increase in rental costs throughout the year. The Wall Street Journal this week quoted a report by Reis, Inc:

“Expect vacancies to continue declining, and rents rising through the rest of 2011 at an even faster pace.”

Bottom Line

You may be waiting on the sidelines to see if prices will continue to depreciate before you purchase a home. The mortgage expense is a major piece in the overall financial picture of homeownership. Make sure you consider it when timing your decision.

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Foreclosure Aid For Idaho Unemployed

April 4, 2011 By Leave a Comment

Idaho has been approved for 13 million dollars to aid the unemployed and help save their homes from foreclosure. Unemployed homeowners will be able to get help from the government with zero-interest, forgivable loans that set out to help them avoid foreclosure. The program will provide up to $50,000 to unemployed homeowners so they can continue to make their mortgage payments while out of work.  The loans can be forgiven over 5 years. For more information contact Joshua Groesbeck  208353-7131 or josh@homeswithjosh.com

Or contact The Department of  Housing and Urban Development

http://portal.hud.gov/portal/page/portal/HUD

 

 

 

Unemployed home owners in five states will be able to get some help from the government with zero-interest, forgivable loans that set out to help them avoid foreclosure.

The $1 billion Emergency Homeowners’ Loan Program — an Obama administration program — was established nearly a year ago but has been delayed several months. The House recently voted to end the unemployment program, but the Democrat-led Senate isn’t expected to approve the measure.

The program will provide unemployed home owners zero-interest loans of up to $50,000 so that they’ll be able to continue making mortgage payments. The loans can be forgiven over five years.

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Idaho Buy Low and Buy Now

March 27, 2011 By Leave a Comment

Waiting for the bottom of the housing market can be very tricky and truth be told when you find it- Well chances are very high that you missed it and it is on the way back up- I wanted to leave and example of what waiting on the fence may cost you in the end. The market here in Idaho is still rocky in cities such as- Boise, Eagle, Meridian, Nampa, Caldwell, Kuna, Star and Middleton. Below is just an example of how interest rates compare to purchasing power. 208-353-7131 or josh@homeswithjosh.com

Let’s say you were going to take out a $200,000 30-year-fixed-rate mortgage in November of 2010. At that time, interest rates were 4.17% (as per Freddie Mac). Your principle and interest payment would have come to $974.54. According to the most recent report from Case Shiller house prices fell 3.9% in the 4th quarter of 2010. The most recent report from the Federal Housing Finance Agency shows a 0.8% fall in prices. Let’s use the larger percentage decrease: 3.9%.

For the sake of keeping the math simple, we will now say you can get the same house with a $192,000 mortgage (4% discount from November price). Interest rates are now 4.95% (as per Freddie Mac).

Your principle and interest payment would now be $1,024.84.

By waiting to pay less for the PRICE of the house, the COST increased over $50 a month. That adds up to more than $600 a year and over $18,000 over the life of the loan.

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HAMP Struggling With Cancellations Or Rejections

February 9, 2011 By Leave a Comment

Below are numbers for Bank of America, JP Morgan, Citi Mortgage, Wells Fargo and how they have been doing with HAMP ( Home Made Affordable Program)- Is your lender trying to foreclose on you? Would you like to minimize the damage to your credit and avoid foreclosure?     FREE CONSULTATION AND FREE SERVICE Joshua Groesbeck 208-353-7131 or josh@homeswithjosh.com

As of November 30, 2010, there were an estimated 1,420,048 borrowers eligible for HAMP who are 60 or more days delinquent.

The servicer performance report released Monday by Treasury revealed that as of the final day of 2010 there are a total of 521,630 active permanent modifications and 152,289 active trial modifications.

By contrast there have been 1,025,907 homeowners rejected for HAMP modifications by the eight largest servicers, and there have been 572,655 canceled trial modifications.

To date there have been 1,466,448 HAMP trials started.

The report details numbers reported for several servicers, including the Bank of America (BofA), Citi, JP Morgan Chase, and Wells Fargo. Though the “big four” banks are leading the pack in numbers of modifications, the numbers are quite low over all when contrasted with the 3 to 4 million homeowners HAMP projected to help by 2012.

On top of that, it seems the pace of modifications is slowing dramatically.

Bank of America has the highest number of modifications of all surveyed servicers. The company reported it currently has 45,753 active trial modifications and 90,243 active permanent modifications.

In June, BofA reported it had completed 72,323 permanent modifications so far. The servicer completed just 6,484 modifications nationwide from November to December 2010.

BofA also has 199,196 homeowners in canceled HAMP trial modifications, and 114,531 homeowners who were not accepted for HAMP trial modifications. Of those homeowners, 18,031 are currently in the process of alternative modifications, 18,572 are in the process of short sales or deeds in lieu, 35,872 are experiencing foreclosure starts and 12,549 have completed foreclosures.

CitiMortgage reported a total of 42,746 active permanent modifications at year-end, and 7,415 active trial modifications. Citi has 81,329 homeowners in canceled trial mods and 128,665 homeowners who were not accepted for HAMP trial modifications, with 34,369 in the process of alt mods, 3,370 going through a short sale or deed in lieu, 8,864 foreclosure starts and 4,527 foreclosure completions.

JP Morgan reported 66,441 active permanent modifications, 20,7999 active trial modifications, and 113,997 in canceled trial mods. The servicer has denied the most homeowners HAMP modifications, at 334,462. Of those homeowners, 101,136 are in the process of alternative modification, 9,892 are in the process of short sales or deeds in lieu, 35,676 are experiencing foreclosure starts and 8,994 are in the process of foreclosure completions.

Wells Fargo reported 70,135 active permanent modifications and 18,526 trial modifications, as well as 118,395 in canceled mods. Wells has 172,387 homeowners who were not accepted for a HAMP trial modification, of those, 47,818 are pursuing alternative modifications, 10,550 are in the process of short sales or deeds in lieu. There are 18,914 foreclosure starts and 11,340 completed foreclosures.

The performance report says the most common causes of trial cancellations are insufficient documentation, trial plan payment default, and borrower ineligibility. Most common causes of trials not accepted are insufficient documentation, borrower ineligibility, or mortgage ineligibility.

Interestingly, Citi and JP Morgan experienced a decline in active permanent modifications from November to December.

Cumulative permanent mods recorded for Citi and JPMorgan in November 2010, were 52,856 and 67,722, respectively.



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New Rules For HAFA Short Sales

January 10, 2011 By Leave a Comment

For anyone questioning the progress of HAMP (Home Affordable Modification Program) and the HAFA (Home Affordable Foreclosure Alternatives Program), here are some clear cut moves that should make the Short-Sale program a little more clear and help distressed owners sell leaving eager buyers the ability to purchase these homes in a timely fashion. If you or someone you know needs help to Short Sale their home or buy  a Short Sale please feel free to contact Josh 208-353-7131 or josh@homeswithjosh.com

Loan servicers will have 30 days to send a borrower a short-sale agreement that includes the list price or acceptable sales proceeds under recent changes made to the Home Affordable Foreclosure Alternatives Program, aimed at distressed borrowers who don’t qualify for other government loan modification programs.

Once a sales contract has been initiated, loan servicers then have 30 days to approve or reject the transaction.

The stricter timelines are believed to help speed up the short sale process, which has faced numerous complaints for how long it takes lenders to review and approve short sales often causing buyers to walk away.

The stricter timelines were apart of several revisions the Treasury Department recently announced to its HAFA program — the second major revision to the program since its launch in 2009.

Another big change: Loan servicers will no longer be restricted on paying second-lien holders, allowing them more freedom particularly when dealing with second-lien holders when borrowers owe less than $100,000. Loan servicers used to be restricted to paying second-lien holders no more than 6 percent of outstanding loan balance (with an overall limit of $6,000) in exchange for releasing subordinate liens. Second-lien holders have been another big obstacle to completing short sale transactions.

HAFA’s new directives also now forbid loan servicers from deducting vendor expenses from commissions paid to real estate brokers.

The rules are effective Feb. 1. It does not apply to mortgages owned or guaranteed by Fannie Mae or Freddie Mac, or insured or guaranteed by a federal agency such as the Federal Housing Administration (FHA).

Source: Daily Real Estate News

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Expectations Of Your Short Sale

November 22, 2010 By Leave a Comment

There is a good chance if your a homeowner that you have little to NO Equity in your home.  Recent reports show nearly 14 Million Homeowners underwater…and 1 in 4 homeowner’s are in some stage of the foreclosure process.

With the Robo Signing fiasco, banks have been on high alert not to exacerbate the already “questionable” processing of foreclosures.  What that means is that banks are much more willing to work with sellers that want to short sale the home.

We’ve been listing and selling short sales for more than 3 years.  Banks used to fight tooth and nail to hold onto the property and threaten foreclosure if the seller did not pay up.  Now…we see banks sitting on their hands because so many homeowner’s have decided to take them up on that foreclosure offer!  Needless to say, “Houston…we have a problem”.

Homeowners are in a state of confusion, the kind of confusion that makes you so paralyzed it’s difficult to make important decisions.

It’s unfortunate, but true, there is a lot of “bad” information being given by so called short sale specialists and attorneys.  We always suggest that our clients speak to an attorney prior to selling their home on short sale, I wish we could say that our clients always get solid “knowledge” from the attorney they consult.

With that said, all banks are different in their terms of settlement when accepting a short sale.  The fact that you have a second lien on the property also adds another element to the approval conditions because both lien holders have to approve and agree on the settlement terms.

****Something to keep in mind, a foreclosure in most cases is your primary loan taking action to regain possession of the property.  If you have taken out a second lien, a home equity line of credit, or any other liens on the home these loans will remain collectible against you and are going to be actively pursued by the debtor/s.  Walking away does not relieve you of the home mortgage debt.

Here are some key elements that you should be aware of when you decide to short sale your home.

1. If you have more than one loan on the property your real estate agent must negotiate with all lien holders to get approval to sell the property.
2. Depending on the investor of your loan/s you may be asked to contribute to the release of these liens.  If you have the means it may be requested that funds be brought to close of escrow.  In most cases, 2nd lien holders have been known to request on average 10% of the balance due them.
3. In most cases your real estate agent can negotiate terms to pay this small balance back to the lender over 5 plus years with no interest.  This is referred to as a promissory note.  Keep in mind, you are going to be resolving your debt for pennies on the dollar.  Example-you borrowed $200,000 on a second.  They want you to pay $20,000 to release you from $180,000 debt…no recourse.
4. HAFA is a Government program that you can apply for if you meet the guidelines of the program.

If you or someone you know is considering a short sale, please contact us for a confidential consultation.  One thing that we want to make sure you are aware of is that the real estate commissions are paid by your lender.  There is no charge to you for our services. Josh 208-353-7131 or josh@homeswithjosh.com

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Total Delinquent and Foreclosure Rates Increasing (now)

November 9, 2010 By Leave a Comment

There are 7 million noncurrent loans but that is down from 8.1 million at the beginning of the year.

New Problem Loans

Unfortunately, things have gotten worse since July-August, just about when home prices stopped rising.

Average Days Delinquent for Homes in Foreclosure

That chart highlights the desperate need to speed up, not halt the foreclosure process.

Facts to consider:

* Economic Conditions Deteriorating

* Adding to the housing misery, over 2 million unemployed workers will lose benefits starting November 30 unless Congress acts to extend benefits in the lame-duck session. Not going to happen.

* Furthermore, gallup surveys point to a flat Christmas season at best, so seasonal hiring may not be as good as expected.

* Finally, stimulus money is spent and there is no driver for jobs with inventory replenishment nearing the end.

These factors will put still more pressure on delinquent loans and foreclosures, which in turn will further pressure prices.

If you are experiencing problems with your house payment and are seeking Loan Modification or Short Sale Service please call or email

208-53-74131 or josh@homeswithjosh.com

Source: Harris Real Estate University

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