Boise Meridian Eagle Idaho Real Estate - Homes Sales and Boise Investment Properties

Michael Hon, CEO, The Iron Eagle Realty Team Assoc. Broker, Silvercreek RG The Iron Eagle Realty Team is a Full Service Real Estate Company. Our mission is to assist our clients in the successful acquisition and sale of their personal homes and/or investment properties in the Boise Idaho Real Estate Market. We have successfully helped our clients with short sales, investment properties and foreclosed / bank owned properties in the Boise Idaho Real Estate Market.

Showing posts with label HAFA Short Sale. Show all posts

Tuesday, January 14, 2014

3 things to know about interest rates in 2014

Found a great article on Interest Rates for 2014 on housingwire.com. This definitely pertains to investment properties in Boise ID.

3 things to know about interest rates in 2014
Whether they rise or not, things are going to change

By Trey Garrison January 10, 2014 5:07PM

Interest rates will go up. Or they will stay the same. One of those two things will definitely happen in 2014, economists say, and some lenders and investors may have trouble adjusting to the change.

"We think rates are generally headed up. We have a growing economy both here and aboard,” said Mike Fratantoni, chief economist for the Mortgage Bankers Association (MBA). "We’re going to get some differing data like today’s jobs report which was off, but the next jobs report may see employment up. We are anticipating the job market is going to grow in 2014 and the recovery will continue."

Further, he said, a longer-term factor will be that a growing federal deficit will put upward pressure on rates. And third, the Federal Reserve has already made it clear that if U-3 unemployment goes below 6.5%, it will let rates rise.

"We expect that in the third quarter the Fed will stop buying MBS and Treasurys, and start raising interest rates," Frantantoni said.

MBA is projecting interest rates on the 10-year Treasury yield to go from 3% in the first quarter of 2014 to 3.3% by fourth quarter of 2014, averaging 3.2% for the year, and then creeping up to 3.5% by the last two quarters 2015, averaging 3.4% for 2015.

MBA projects that 30-year fixed mortgage rates will go from 4.7% in the first quarter 2014 to 5.1% by the end of the year, and continuing a slow rise to 5.3% by the end of 2015.

Conversely, economists at international macro-economic research firm Capital Economics say they don’t expect interest rates to rise and that the Fed will keep a tight, tight leash on rates through 2014.

"The world economy has entered 2014 with a lot more momentum than it had a year ago. Business and consumer confidence have improved and unemployment is falling rapidly in several countries. However, while this should eventually prompt central bankers to raise interest rates, we do not expect significant hikes this year," the firm states in its Global Central Bank Watch report. "Instead, the Fed and Bank of England are likely to leave rates unchanged even after unemployment falls below their current thresholds, while both the ECB and the Bank of Japan look set to announce additional policy stimulus."

"The acceleration in growth over the past twelve months or so has been particularly strong in advanced economies In principle, this should pave the way for policy- makers to raise official rates from their current exceptionally low levels, particularly given that some central banks – notably the Fed and Bank of England – have explicitly linked future hikes to progress in reducing unemployment," the Capital Economics report states. "In practice, though, the four major central banks in advanced economies are likely to continue to tread very carefully in withdrawing stimulus, let alone actually tightening policy."

One big concern outside the housing and mortgage universe is that if interest rates rise too high, it could essentially bankrupt the U.S. treasury. The Fed is now printing 29 cents for every dollar the U.S. government spends, and servicing the national $17.3 trillion debt is costly even with low interest rates.

A study last fall by the bipartisan Committee for a Responsible Federal Budget said total interest payments on the federal debt in 2013 were approximately $255 billion. That’s based on the Treasury paying 0.01% on three-month bills and 2.98% on 10-year notes, as opposed to the historical average of 3.3% and 5.2 % respectively.

Frantantoni said typically the Fed has made it clear to the Treasury that it will focus on price stability rather than financing the debt, although he acknowledges there is a concern that interest payments on outstanding federal debt could be an issue. Economic growth concurrent with rising interest rates would serve to ameliorate these concerns through increased tax revenues and stronger job growth.

"We’ve had a couple of unusual years, and a lot of folks in the Fed would like to get back to the role of just minding monetary policy,” he said.

The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.

Regards, Michael Hon, REALTOR®CEO, The Iron Eagle Realty Team
Associate Broker, Silvercreek Realty Group
Certified Short Sale Specialist®
Investment Property Consultant
Direct: 208.919.0458 Office: 208.939.9033 Fax: 208.514.1422
www.IronEagleRE.com Michael.Hon@IronEagleRE.com

Wednesday, April 24, 2013

Boise Idaho Investment Property - Fourplex within a Mile of Downtown Boise and Boise State University

Activity level has jumped again in the fourplex market in Boise so I thought you might like some information about a fourplex The Iron Eagle Realty Team just listed that is JUST ONE MILE (WALKING DISTANCE) of downtown Boise and Boise State University.

This is a fully leased fourplex (built in 1994) just south of Downtown Boise. You can literally walk to downtown as well as the BSU campus within minutes. All the units are 2 bedroom with 2 baths; clean as a whistle and perfect for roomates. The owner has NEVER had an issue renting these.

In fact, all of the utilities can be paid by the tenants and the rents are slightly under market. With an increase in rents and utilities paid by the tenants, this property produces an almost a 10% cash on cash return with a 6.8% cap rate. Not only that, this block is sandwiched by city blocks that have already been re-developed with new apartments and condos. This is an excellent income producing property and a long term hold for re-development opportunities.

If you are interest in a proforma, please click on the link below or call me at 208 939 9033.

PS: Click here to go to our Facebook Page, Boise Investment Real Estate and Like Us!

Like NEW FULLY LEASED Fourplex - Asking $315,000

Walking Distance from DOWNTOWN Boise ID

and Boise State University

2 Bedroom and 2 Bath Units

3856 SF, Built in 1994

If you are interested in this property please...

Click here to download listing info, map and proforma

CLICK HERE FOR GOOGLE MAP

Or Call 208 939 9033 for more info

The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.

Wednesday, January 23, 2013

Avoiding the Dirty Dozen Barriers to Short Sale Success

Here's great blog post on KCM by BRANDON BRITTINGHAM

Short sales often take three times longer than a traditional transaction and sometimes never close at all. By hiring an agent who knows to avoid these twelve barriers, the process can be less stressful.

1.) Poor short sale candidate

Establish objective criteria
Conduct an extensive interview with homeowner
Ascertain seller is motivated and cooperative
2.) Agent lacks familiarity with the lender’s requirements and procedures to complete the short sale

Harvest and maintain lender and investor guidelines
Secure individual forms required for each lender/servicer
3.) Title exam not obtained in the beginning

Identifies individuals on deed and mortgages
Determines all lien holders
4.) Incomplete package submitted to the lender/servicer

Focus on the quality of the package at time of submission
Detail orientation is critical
All docs completely executed
Complete package allows process to flow faster
5.) Short sale not begun prior to receiving a contract to purchase

Adds 30 to 60 additional days
Lender never looks at buyer contract until seller candidate is approved and market value has been determined
6.) Complete package not maintained throughout the short sale process

Must keep all required homeowner financial information current and forwarded to the servicer every 30 days
7.) Lack of communication with the lender

Most negotiators overwhelmed by the number of individual cases they are working on
Misunderstandings, loss of documents, and/or lack of familiarity with files are very common
Agent must continue to follow-up with the servicer twice a week to reduce unnecessary delays
8.) Poor record keeping /documentation by agent

High probability of changes in processing personnel
New person often lacks familiarity with case.
Has to rely on the quality of notes in the file
Information is often lost or missing
Agent’s role is to help fill in the gaps
9.) Professional relationship with the negotiator never established

Stressful environment
Lots of frustration
Lack of respect and trust are common
Begins with building rapport
Can be a big game changer
10.) Failure to meet BPO/Appraiser at the listing

Without a detailed inspection of the property inside and outside the value will be distorted
Meeting BPO at property provides great opportunity to share information that might not otherwise be discovered
11.) Fair market value dispute

Common in most markets
Negotiators lack current relevant information on most markets
Forced to make decisions based on the data provided by BPO and information in the lender package
Agent must be willing to provide additional current, detailed, relevant information (ie. local market, economy, demographics, and property condition) that can have an effect on value.

12.) Failure to “escalate” to higher authority when communication breaks down

Escalation is part of the short sale process
Escalating to a supervisor can be the key to moving forward
Upper levels of every lender’s short sale department are working toward one goal– avoiding another foreclosure
Avoiding these dozen pitfalls will increase your odds of success while reducing everyone’s time and stress.

The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.

Friday, January 04, 2013

Mortgage Debt Forgiveness Act Extended

Mortgage industry fares well in fiscal cliff deal, debt forgiveness law survives

The mortgage industry can breath a sigh of relief with the final fiscal cliff deal bringing back a popular tax break on mortgage insurance premiums and debt forgiveness for borrowers who go through a short-sale or some other type of debt reduction.

A topic that is still up for discussion and likely to surface later in the year is whether the popular mortgage interest tax deduction will be part of a long-term deficit reduction plan.

Still, the deal passed by the Senate and House on Jan. 1 is one that leaves room for hope in the housing market.

The American Taxpayer Relief Act of 2012 apparently extends a law that expired at the end of 2011, which allowed for the deductibility of mortgage insurance premiums, according to a research report from Isaac Boltansky with Compass Point Research & Trading. The law now applies to fiscal years 2012 and 2013.

"The law dictates that eligible borrowers who itemize their federal tax returns and have an adjusted gross income (AGI) of less than $100,000 per year can deduct 100% of their annual mortgage insurance premiums," Compass Point said.

"Certain borrowers with AGIs above $100,000 may benefit from the deductibility as well but are subject to a sliding scale. The tax break covers private mortgage insurance as well as mortgage insurance provided by the FHA, the VA, and the Rural Housing Service. In 2009, about 3.6 million taxpayers claimed the mortgage insurance deduction," the research firm added.

One of the more watched provisions of the fiscal cliff was the Mortgage Forgiveness Debt Relief Act of 2007, which was set to expire on Dec. 31.

The fiscal cliff deal extends it for another year, meaning homeowners who experience a debt reduction through mortgage principal forgiveness or a short sale are exempt from being taxed on the forgiven amount.

"The amount extends up to $2 million of debt forgiven on the homeowner's principal residence," Compass Point Research & Trading said. "For homeowner's to qualify, their debt must have been used to 'buy, build, or substantially improve' their principal residence and be secured by that residence. The law, which was passed in 2007 with a 5-year sunset provision, will now be in effect until Jan. 1, 2014."

Another minor win for housing is a provision tied to the government's plan to increase the capital gains tax rate from 15% to 20% for individuals who earn more than $400,000. While in theory, this is harder on higher-income homeowners, Compass Point sees a silver lining through an exclusion.

Compass Point notes the law "states that only gains of more than $250,000 for individuals ($500k for households) are subject to taxes on the excess portion of capital gains. Point being, in order for an individual homeowner to be impacted by the increased capital gains tax rate they would need to have an adjusted gross income above $400,000 and gain more than $250,000 from the sale of the property. Since this exclusion threshold remained intact, the impact of the capital gains tax increase is limited."

The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.

Thursday, September 06, 2012

Here’s More Evidence That Home Prices Have Hit Bottom

By Nick Timiraos
Wall Street Journal Blogs

Home prices in July were up by 3.8% from one year ago.
In each of the last three years, home prices have increased in the spring and summer, when more people are buying homes, before giving back all of those gains and then some in the fall and winter, when activity cools.

But it is beginning to look like that might not happen this year, absent a major stumble for the economy.

Home prices in July were up by 3.8% from one year ago, the largest year-over-year jump in six years. Moreover, prices have shot up by 9.6% from February, when they registered their lowest levels of the housing downturn, according to CoreLogic CLGX +0.32% data released Tuesday.

This adds evidence to the case that U.S. home prices may have hit bottom earlier this year. Even though prices will soften in the autumn, “we have a much better supply and demand dynamic” than in previous years, said Mark Fleming, chief economist at CoreLogic.

So when people say they believe home prices haven’t reached a bottom—that this year’s seasonal gains will be wiped away by January or February of next year—here’s the relevant question: Will home prices fall by 9.6% in the next six months?

Anything, of course, is possible. Home prices fell in the winter—what Mr. Fleming calls the “offseason”—in each of the last three years to record a new low. But they have not fallen by 9.6% in any six-month span since March 2009, which was when the U.S. economy was still in recession.

That’s the good news. Here’s the bad news: While the year-over-year comparisons look good right now, the economy—and workers’ wages—aren’t growing fast enough to justify this kind of increase on a sustained basis.

Instead, the snapback in home prices in the last six months is more an indication of how prices “over-shot” over the past year. Investors, sensing deals, began buying up homes. The most likely scenario for home prices over the next year is that they may rise, but not at the breakneck pace of the past few months (and they’ll fall on a relative basis in the coming months due to normal seasonal factors).

There are other serious headwinds. It’s still hard to get a mortgage, and many households have too much debt. Millions of homeowners owe more than their homes are worth. Millions more have enough equity to sell their house but not enough to make a down payment on their next house and pay a real-estate broker’s commission.

As we’ve written many times before, the strong rise in home prices this year owes as much to sharp declines in inventory as it does to demand-side improvement. Banks have been much slower to take back and list foreclosed properties, easing pressure on home prices but leaving a bloated “shadow inventory” of potential foreclosures.

These homes will weigh on markets for years, though there’s less evidence that they will be dumped on the market at once. While the shadow inventory may not lead to a big drop in prices that some have feared, it will probably keep a lid on future home-price gains.

Finally, lower mortgage rates have dramatically increased the purchasing power of today’s home buyers when compared to one year ago. Some real-estate executives are nervous that demand isn’t stronger given today’s low mortgage rates, and they’re worried about what will happen if rates rise.

The bottom line: Don’t be surprised if the all-time low in home prices is in the rearview mirror. But this doesn’t mean a full-on recovery is here, and there’s little evidence that the current pace of improvement can continue. For now, home prices appear to be bumping along a bottom.

The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.

Friday, August 24, 2012

New Short Sale Guidelines for GSEs Will Make Process Easier

BY: ESTHER CHO
DSNEWS.COM

Starting November 1, 2012, Fannie Mae and Freddie Mac will implement new short sale guidelines to make the approval process easier for eligible borrowers.

“These new guidelines demonstrate FHFA’s and Fannie Mae’s and Freddie Mac’s commitment to enhancing and streamlining processes to avoid foreclosure and stabilize communities,” said
FHFA Acting Director Edward J. DeMarco in a statement. “The new standard short sale program will also provide relief to those underwater borrowers who need to relocate more than 50 miles for a job.”

The changes are part of the FHFA’s Servicing Alignment Initiative and will require a streamlined approach with documents, leading to a reduction in documentation requirements. For example, borrowers who are 90 days or more delinquent and have a credit score lower than 620 will no longer be required to provide documentation for their hardship.

The GSEs will also waive their right to pursue deficiency judgments. Borrowers with sufficient income or assets can make cash contributions or sign promissory notes instead.

One major barrier that is also being addressed is the issue with second lien holders. To prevent second lien holders from stalling the short sale process, the GSEs will offer up to $6,000.

The new guidelines will also enable servicers to approve a short sale for borrowers who are not in default but face certain hardships including the death of a borrower or co-borrower, divorce or legal separation, illness or disability or a distant employment transfer.

In addition, all servicers will have the authority to approve and complete short sales that follow the requirements without first going to the GSEs for approval.

Provisions were also created for military personnel with Permanent Change of Station (PCS) orders. Servicemembers who are required to relocate will automatically be eligible for for short sales even if they are current. They also won’t be obligated to contribute funds to pay for the remaining deficiency.

“Short sales have become an increasingly important tool in preventing foreclosures and stabilizing communities,” said Leslie Peeler, SVP, National Servicing Organization, Fannie Mae. “We want to help as many homeowners avoid foreclosure as possible. It is vital that servicers, junior lien holders and mortgage insurers step up to the plate with us.”

Tracy Mooney, SVP of Single-Family Servicing and REO at Freddie Mac, said, “These changes will make it clear that Freddie Mac servicers have the authority to approve short sales for more borrowers facing the most frequently seen hardships. These changes will further empower the industry to minimize foreclosures and help Freddie Mac in its mission to minimize credit losses and fortify a national housing recovery.”

Fannie Mae will send the announcement for the new changes to servicers Wednesday. Freddie Mac sent their announcement Tuesday.

In April, the GSEs also announced they were setting requirements to have a decision on a short sale offer made within 30-60 days.

The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.

Tuesday, August 21, 2012

REO inventories drop even as banks hold on to them longer

Foreclosure starts drop in Arizona, Nevada, Oregon
BY INMAN NEWS, WEDNESDAY, AUGUST 15, 2012.
Inman News®

Inventories of bank-owned properties fell year over year across four Western states in July even as lenders took longer to get those properties off their books, according to the latest report from real estate data company ForeclosureRadar.

The report covers foreclosure trends in California, Arizona, Nevada, Washington and Oregon. Of the five states, only Oregon did not see its bank-owned inventory drop last month.

In California, the number of homes repossessed by lenders but not yet resold, known as bank-owned or real estate owned (REO) inventory, was down 36.4 percent to 66,000 properties last month. Banks sold REOs in 283 days on average, up from 232 days in July 2011. By contrast, homes bought by third parties at auction, usually investors, were resold in an average 138 days, up from 128 days a year ago.

Nonetheless, there are some signs the pipeline of foreclosures in the Golden State is speeding up a bit. Foreclosure starts rose 12.3 percent year over year in July to 21,175. The average number of days between the initial notice of default and the end of the foreclosure process (with the property either sold to a third party or repossessed by the bank) was 276 days last month (equivalent to about nine months), down from 310 days (about 10 months) a year ago.

Among the California homes in the foreclosure process whose fates were decided in July, most (10,398) experienced a cancellation of the process due to a successful loan modification or short sale, among other possible reasons. The number of properties that went back to the bank as REOs declined 54.2 percent on an annual basis to 4,512. Foreclosure sales to third parties fell 6.6 percent to 3,269.

In Arizona, foreclosure starts fell 28.2 percent year over year in July, to 4,433. Foreclosure cancellations were down 4.4 percent annually, to 3,575. The number of properties that went back to the bank as REOs decreased 33.8 percent year over year, to 2,191. Those sold to third parties rose 3 percent on an annual basis, to 1,630.

Arizona's REO inventory fell 38.1 percent last month, to 14,784. While the time to foreclose declined to an average 136 days from 175 days in July 2011, the time between when the bank took back the property and the property was resold rose a whopping 64.9 percent, to an average 244 days in July. Third parties resold properties in less than half that time, 107 days, up from 94 days a year ago.

Foreclosure activity in Nevada has slowed to a trickle, likely as a result of a Nevada state law that went into effect in October designed to crack down on documentation irregularities by foreclosing lenders.

In July, Nevada foreclosure starts were down 61.8 percent, to 1,618, compared with 4,235 a year ago. Foreclosure cancellations were down to 800, a nearly 60 percent drop from July 2011, but the number of properties becoming REOs dropped even more precipitously, 77.8 percent, to only 394 properties. The number of properties sold to third parties on the courthouse steps fell 34.4 percent, to 429.

The state's REO inventory was down 63.8 percent to 5,541 in July with the number of homes in the foreclosure pipeline dropping by more than half year over year. It took nearly 46 percent longer to foreclose on a property last month than it did in July 2011: an average of 471 days -- the equivalent of nearly 16 months. Banks also took considerably longer to sell homes once they'd repossessed them -- an average 221 days, up from 154 days a year ago. Third parties resold in an average 133 days, up from 98 days.

In Washington state, time to foreclose was virtually unchanged from a year ago in July: 102 days on average. Foreclosure starts were up 13.1 percent to 2,527. Cancellations fell 59.5 percent to 601. The number of properties that went back to the bank as REOs fell 67.1 percent to 595. Foreclosure sales to third parties fell 36 percent to 151.

As in the aforementioned states, REO inventory in Washington fell substantially last month: down 42.2 percent to 6,554. Banks took an average of 249 days to resell an REO property, up 25.9 percent. By contrast, third parties took an average 107 days to resell, down 24.1 percent.

In Oregon, foreclosure starts were down 58.6 percent year over year in July, to 426.

"This is most likely related to both the new Oregon law, SB 1552, that gives homeowners at risk of default, or in default, the right to request mediation to avoid foreclosure, as well as the Oregon Court of Appeals ruling that may force some lenders to proceed judicially with foreclosures," the report said.

"It is still not clear whether this is a temporary decline or part of a move toward judicial foreclosure in Oregon."

Nonetheless, time to foreclose fell to an average of 143 days from 162 days a year ago. Foreclosure cancellations in Oregon fell 11.9 percent on an annual basis last month, to 761 properties. At the same time, the number of properties reverting to REOs rose 93.6 percent year over year, to 395. Sales to third parties rose 73.7 percent, to 66 properties.

In contrast to the other four states in the ForeclosureRadar report, REO inventory in Oregon rose in July, up 39.7 percent to 3,153 properties. Banks also resold REOs at a quicker pace -- an average of 203 days, down from 219 a year ago. Third parties resold in an average of 79 days, up from 66 in July 2011.

The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.

Tuesday, August 14, 2012

The One Housing Solution Left: Mass Mortgage Refinancing

By JOSEPH E. STIGLITZ and MARK ZANDI
Published: August 12, 2012
NYTimes.com

MORE than four million Americans have lost their homes since the housing bubble began bursting six years ago. An additional 3.5 million homeowners are in the foreclosure process or are so delinquent on payments that they will be soon. With 13.5 million homeowners underwater — they owe more than their home is now worth — the odds are high that many millions more will lose their homes.

Housing remains the biggest impediment to economic recovery, yet Washington seems paralyzed. While the Obama administration’s housing policies have fallen short, Mitt Romney hasn’t offered any meaningful new proposals to aid distressed or underwater homeowners.

Late last month, the top regulator overseeing Fannie Mae and Freddie Mac blocked a plan backed by the Obama administration to let the companies forgive some of the mortgage debt owed by stressed homeowners. While half a million homeowners could be helped with a principal writedown, the regulator, Edward J. DeMarco, argued (we believe incorrectly) that helping some homeowners might cause others who are paying on their loans to stop so that they also could get their mortgages reduced.

With principal writedown no longer an option, the government needs to find a new way to facilitate mass mortgage refinancings. With rates at record lows, refinancing would allow homeowners to significantly reduce their monthly payments, freeing up money to spend on other things. A mass refinancing program would work like a potent tax cut.

Refinancing would also significantly reduce the chance of default for underwater homeowners. With fewer losses from past loans burdening their balance sheets, lenders could make more new loans, and communities plagued by mass foreclosures might see relief from blight.

Well over half of all American homeowners with mortgages are paying rates that would appear to make them excellent candidates to refinance. Many of those with stable jobs, good credit scores and even a modest amount of home equity have already done so, taking out 30-year loans at rates around 3.5 percent, some of the lowest rates since the 1950s. But many others can’t refinance because the collapse in house prices has wiped out their home equity.

Senator Jeff Merkley, an Oregon Democrat, has proposed a remedy. Under his plan, called Rebuilding American Homeownership, underwater homeowners who are current on their payments and meet other requirements would have the option to refinance to either lower their monthly payments or pay down their loans and rebuild equity.

A government-financed trust would be used to buy the mortgages of homeowners who had refinanced at an interest rate that was about 2 percentage points more than the record-low Treasury rates at which the government borrows. This would generate enough interest income to cover the costs of any defaults, administration of the trust and other expenses. Families would have three years to refinance; after that, the trust would stop buying loans and eventually wind itself down as homeowners repaid their loans.

Homeowners would see lower mortgage payments and rebuild equity more quickly. Taxpayers would get their money back, with interest, and would gain further as a stronger economy lifted tax revenues. Banks and other mortgage investors would get potentially troubled loans off their books. Some banks won’t like losing the large amounts of interest income they are earning on their current mortgages, but if the refinancing market were working properly these loans would have been refinanced long ago.

If the program was very successful, we envisage that two million outstanding loans could be placed in a Rebuilding American Homeownership trust at its peak. If the average mortgage balance was $150,000, then at the peak there would be $300 billion outstanding.

The federal government could finance the plan directly, through the Federal Housing Administration, or indirectly, through the Federal Home Loan Banks, which offer government-backed credit. Or the Federal Reserve could underwrite the plan; the central bank’s chairman, Ben S. Bernanke, recently talked about the Fed’s doing something akin to the Bank of England’s new Funding for Lending program, which offers incentives to banks to increase lending to households and nonfinancial businesses.

Opponents of additional borrowing or Fed lending will say that a program like this is an unacceptable risk, but the greater risk is to do nothing and let the housing market continue to hold back the economy.

Mr. Merkley’s plan resembles the Obama administration’s Home Affordable Refinance Plan, or HARP, which was designed to help underwater homeowners refinance loans backed by Fannie and Freddie. It has made possible 1.4 million refinancings, far fewer than the goal set in 2009 of 3 million to 4 million. The administration has made some improvements to HARP and proposed others. But the Merkley plan has the potential to go further, reaching the 20 million households with mortgages that aren’t backed by Fannie or Freddie.

The Merkley plan has a successful precedent in the Home Owners’ Loan Corporation, established in 1933. It swept more than a million Americans out of foreclosure and into the long-term, stable mortgages that would become the hallmark of the middle class during the 1950s and ’60s. It’s time to revive this idea.

Since the Great Recession began almost five years ago, housing has been at the heart of our economic woes. If we do nothing, the problem will eventually resolve itself, but only with significant pain and a long wait. Mr. Merkley’s plan would speed the healing.

Joseph E. Stiglitz is a professor of economics at Columbia. Mark Zandi is the chief economist at Moody’s Analytics.

Monday, April 23, 2012

Bank-owned homes being held off the market

Here is an interesting article from the Idaho Business Review. There are currently 462 total REO's on the MLS,63 in Ada County and 133 in Canyon County. These are much lower than what we had on the market last year.

by Brad Carlson Idaho Business Review Published: April 18,2012 Time posted: 9:52 am

Some market watchers say banks aren’t immediately listing foreclosed homes for sale, in part to keep the market from being flooded with distressed properties. The number of bank-owned homes listed for sale through southwest Idaho’s multiple listing service dropped 17.3 percent from February 1 through the end of March, Idaho Data Providers said in a report. Listings of bank “real estate owned” homes, or REOs, dropped from 1,176 to 973 during the period. “This fact is worth mentioning since foreclosure sales are still occurring, and the vast majority of properties are going back to the lender, but there haven’t been that many REO sales to account for the decline,” Idaho Data Providers President Charlie Nate said in the report. “This is evidence that lenders are holding REOs off the market and probably renting them for a while to help keep the market stable.” The number of REOs listed for sale in the database of the Boise-based Intermountain MLS is short of the number of properties going back to banks in foreclosure actions, Nate said in an interview. His company tracks default and foreclosure filings as well as listings of distressed properties for sale. “They are doing that so they don’t further depress the market,” Nate said. “It’s just kind of a controlled thing.” Lance Churchill is a Meridian-based attorney who owns Frontline Realty, which buys and sells investment real estate. The company mainly handles residential properties, buying them at foreclosure auctions. Comparison of bank “real estate owned” homes to short sales listed for sale in the Boise-based Intermountain MLS. In a short sale, the lender agrees to accept a price below what is owed. Courtesy Idaho Data Providers. Banks continue to take back houses through foreclosure but are holding some off the market, Churchill said. Fannie Mae, Freddie Mac and lenders have started programs in which they rent bank-owned homes to residents instead of selling the homes immediately, which helps keep the market from being flooded with REO properties, Churchill said. Fannie and Freddie are government-sponsored enterprises that buy mortgages from lenders. “I’ve certainly noticed the REOs I handle are down,” said Remax Capital City Realtor Blake Mayes, who concentrates on REOs. “Certainly for me, inventory is down from what it was last year.” One Boise-area bank that is not holding properties off the market is Bank of the Cascades. “Anything we have in Other Real Estate (Owned), we have listed for sale,” Bank of the Cascades Idaho Region President Mike Mooney said. “Our OREO numbers are down pretty dramatically in the last six months and continue to trend downward.” Bank of the Cascades owns fewer homes in part because the economy and demand for housing are improving, and low interest rates are helping buyers, Mooney said. “We don’t want to own property; we want to make loans,” he said. “It’s definitely getting better.” The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.

Monday, February 06, 2012

Report: Freddie Mac bets against homeowner refinancings

They are all CRIMINALS!!!

NPR and ProPublica investigation shines light on investment practices
BY INMAN NEWS, MONDAY, JANUARY 30, 2012.
Inman News®

In 2010 and 2011, mortgage giant Freddie Mac invested billions of dollars on bets that homeowners with high-interest mortgages would not be able to refinance at today's lower interest rates, according to a joint investigation conducted by NPR and ProPublica, a nonprofit, independent news agency.

While legal, the bets appear to be in direct conflict with the taxpayer-backed company's public mission, as stated on its website, "to stabilize the nation's residential mortgage markets and expand opportunities for homeownership and affordable rental housing," the news agencies said, noting that refinancing terms have been getting more restrictive of late and include higher fees and new rules that prevent some homeowners from taking advantage of historically low interest rates.

Freddie Mac is regulated by the Federal Housing Finance Agency (FHFA). Officials at both Freddie Mac and FHFA repeatedly declined to comment on the specific transactions, the news agencies said, though Freddie Mac did say that its employees who make investment decisions are "walled off" from those who determine the terms under which homeowners can get loans.

And in a written statement, Freddie Mac said it "is actively supporting efforts for borrowers to realize the benefits of refinancing their mortgages to lower rates," noting that it refinanced loans for hundreds of thousands of borrowers in 2011, according to the news agencies' report.

HousingWire writer Jacob Gaffney accused NPR and ProPublic of conducting a "witch hunt" of Freddie Mac.

"Who in their right mind would try to counter NPR and ProPublica articles that clearly depict the evil mortgage market behemoth undercutting homeownership initiatives and doing the unthinkable: Trying to earn money for bond investors?" Gaffney said.

Hate to say it NPR and ProPublica, but the same thing is happening at Ginnie Mae and Fannie Mae, and just about everywhere a home is bought, sold and financed."

He added, "The very federal conservatorship status that both Fannie and Freddie are under is designed to protect their assets. That means keeping performing loans right where they are -- in a position that most efficiently monetizes loans for investors" -- one of the biggest of which is the U.S. government, he said.

ProPublica characterized the investments by Freddie Mac as a conflict at the heart of the company: "In addition to being an instrument of government policy dedicated to making home loans more accessible, Freddie also has giant investment portfolios and could lose substantial amounts of money if too many borrowers refinance."

Freddie Mac, as does fellow government-sponsored enterprise Fannie Mae, repurchases loans from lenders, allowing them to keep making more loans with minimal risk. The report by NPR and ProPublica contends that in 2010 and 2011 Freddie Mac didn't just repurchase and hold loans, however -- the company reportedly also packaged hundreds of thousands of loans, chopping the securities up into two main slices:

1. One that is low-risk, and based on homeowners paying the principal on their mortgage.

2. The other, known as an "inverse floater," that is higher-risk and based on all of the interest owed on the entire bundle.

Freddie Mac would sell the low-risk slice and keep the higher-risk slice, the news agencies said.

"That riskiest investment pays out a lucrative stream of interest payments. But Freddie's slice also has all the so-called 'prepayment risk' associated with that (bundle) of loans. So if lots of people 'prepay' their old loans and refinance into new, cheaper ones, then Freddie Mac starts to lose money. If people can't refinance, then Freddie wins because it continues to receive that flow of older, higher interest payments," NPR said.

The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.

PS: We've Helped More Buyers and Sellers than 99.8% of any Local Realtor

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Regards, Michael Hon, REALTOR®
CEO, The Iron Eagle Realty Team
Associate Broker, Silvercreek Realty Group
Certified Short Sale Specialist®
Investment Property Consultant
Direct: 208.919.0458 Office: 208.939.9033 Fax: 208.514.1422
www.IronEagleRE.com Michael.Hon@IronEagleRE.com

Wednesday, February 01, 2012

U.S. regulator launches foreclosure sales plan

(Reuters) - The regulator for mortgage finance companies Fannie Mae and Freddie Mac said on Wednesday investors could now sign up to pre-qualify to bid on foreclosed properties held by the government-controlled firms.

Those investors meeting the qualifications set by the Federal Housing Finance Agency could purchase homes and then convert them into rental units under the new program. They would be required to use the properties as rentals for a specific number of years.

Government-run Fannie Mae, Freddie Mac and the Federal Housing Administration own a large portion of the country's foreclosed properties. As that inventory is expected to swell, the federal program is aimed to clear the backlog of distressed properties that has flooded the market and depressed prices, while at the same time meeting the increased demands of renters.

The regulator said it will announce the first transaction during a pilot phase of the so-called REO initiative in the "near term." Fannie Mae will offer for sale pools of various types of assets in the first pilot program, including rental properties, vacant properties and non-performing loans with a focus on the hardest-hit areas.

"This is an important step toward increasing private investment in foreclosed properties to maximize value and stabilize communities," said FHFA acting director Edward DeMarco.

Later Wednesday, President Barack Obama will announce a package of proposals to help the ailing housing market, including a way to help more borrowers refinance at record low borrowing costs.

(Reporting by Margaret Chadbourn; Editing by Andrea Ricci)

The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.

Monday, January 23, 2012

Report: Idaho Workers Missing out on $11,000 a Year

Reposted from Public News Service

January 16, 2012

BOISE, Idaho - Idaho's economy is still far from being healthy, and chronic low wages are part of the problem. Research on the topic is being discussed today at the "Kitchen Table Economics" forum in Boise.

Retired University of Idaho economics professor Stephen Cooke has found that Idahoans earn about $11,000 less per year than the national average, and he says the state should focus on ways to change that, in order to grow the economy.

"What I'm suggesting for a remedy is that, in order to become a high-skilled economy, we need to make investments in research and development, education and infrastructure."

Cooke says higher wages mean more disposable income and more tax revenue, and yet Idaho has been focused on policies that attract low-wage, low-skill jobs, instead of recruiting high-paying jobs.

He says early legislative discussion about cutting taxes to improve the state's economy ignores the underlying problem of the low-skill, low-wage issue, which he calls a trap Idaho has fallen into.

"There's no indication that cutting taxes improves economic development, and in fact just the opposite is true."

He says Idaho's declining job sectors include professional, scientific and technical services, as well as management of companies and enterprises, and mining.

"Kitchen Table Economics" will be held from 6-8 p.m. today in the State Capitol Auditorium. Dr. Cooke will speak at the event.

Deb Courson Smith, Public News Service - ID

The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.

Monday, January 16, 2012

Housing outlook is more upbeat - USA Today

By Julie Schmit, USA TODAY

Optimism is building that the housing industry is nearing a bottom — finally.

Home sales and home building are forecast to rise this year after sliding steeply the past five years in housing's worst downturn since the Great Depression.
Recovery is expected to be slow, and home prices are widely expected to fall this year. But investors are betting on the start of an upturn, bidding up home builder stocks and causing them to outperform the broader stock market.
Chief executives are more positive. JPMorgan Chase's Jamie Dimon said last week that housing is near its bottom but could stay there a year. Stuart Miller, CEO of home builder Lennar, said the market has started to stabilize because of low prices and record-low interest rates.
Market researcher RBC Capital Markets has also turned from a "bearish" view on housing to saying that 2012 "will mark a step in the right direction."

Many economists expect home prices to fall more this year because of foreclosures and other properties sold at very low prices.
As foreclosures pick up this year, "prices will drop," says Stan Humphries, Zillow chief economist. He says home prices won't bottom until later in 2012 or next year.
On average, prices have fallen by about a third since 2006.
"This year will feel a lot better to builders, investors and real estate agents than to consumers," says Jed Kolko, economist for real estate website Trulia.
Housing's outlook is brightening with signs of a better economy. Last month, U.S. employers added 200,000 jobs, and the unemployment rate fell to 8.5%, lowest in nearly three years.
While an economic shock could derail progress, "there's now more evidence of improvement in the economy, and housing will follow the economy," says David Crowe, chief economist at the National Association of Home Builders. More improvement is expected for:

•Sales. Existing home sales will rise 12% this year after a 2% increase last year, and new home sales, coming off a horrid year, will jump 74% this year, Moody's Analytics predicts.
November's existing home sales hit their highest mark in 10 months, and new home sales were the year's second best, IHS Global Insight says.

•Construction. Single-family housing starts will rise 37% this year, Moody's predicts, after falling 9% last year.

Home builder stocks are on a run. The S&P 1500 homebuilding index is up 38% since mid-October, vs. 7% for the S&P 500.

The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.

Regards, Michael Hon, REALTOR®
CEO, The Iron Eagle Realty Team
Associate Broker, Silvercreek Realty Group
Certified Short Sale Specialist®
Investment Property Consultant
Direct: 208.919.0458 Office: 208.939.9033 Fax: 208.514.1422
www.IronEagleRE.com Michael.Hon@IronEagleRE.com

Thursday, January 05, 2012

Many homeowners are unaware of how foreclosure, loan modification and short sale affect their credit score in Idaho? Here are some approximate rules of thumb but each homeowners situation is is different so these are not in concrete.

Overview on affect on credit:

Foreclosure - A foreclosure can drop scores from 50-250 points and what is really interesting is the difference on the loss of points depends on how much you have to lose, for example, if someone has a 750 credit score, they could drop 250 points but someone with a 600 score may only lose 100 points for the same thing. If a deficiency judgment or tax lien is filed in connection with a foreclosure, credit scores can drop an additional 100 points. It may be 5 - 7 years before you can acquire another home loan.

Short sale

Paid as agreed won't hurt score as long as payments were kept current.
Unrated may drop a few points in addition to the drop because of the lates.
Paid settlement may drop the score by 50-125 points in addition to lates.
Charge off with a collectible balance may drop 100-150 in addition to lates, in this instance scores will not start to recover until the charged off balance is paid.
Judgment for deficiency amount - if lender files a judgment in addition to the charge off-scores can drop an additional 100 points from this, most severe impact on scores and credit.
It may be 2 - 3 years before you can acquire another home loan.

Deed in Lieu

Paid as agreed - scores will have already dropped about 100 points due to default in payments, but if this is reported, the borrower will be able to purchase another home in a shorter period of time.
Paid settlement - credit can drop 75/100 points in addition to the delinquent payments.
Foreclosure - scores drop 100-150 points in addition to the delinquent payments.
It may be 2 - 3 years before you can acquire another home loan. Most lenders want you to short sale your home first before they will consider you for a deed in lieu.

Loan Modification

Lenders may report it as an "account in partial payment plan", this can drop someone's scores by as much as 150 points in addition to lates. So it is important to make every effort to negotiate with the lender on how they will report: Not to report it in a partial payment plan. Remove any lates incurred during the waiting period of when the request for loan modification was made to the time of completion. Document every move they make, phone calls, etc. on their efforts to remain current on their payment.

We hope this helps you in making the right decision for you and your family. Please call us at 208 939 9033 if you need any further assistance.

The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.