Shannon@ShannonKochHomes.com 970.433.3831 C
christi@brayandco.com 970.260.9108 C
Bray Real Estate. 1015 N. 7th St. Grand Junction, CO 81503
Thursday, June 30, 2011
Same service, different company
Same service, different company! I have moved my business to work with Christi Reece of Bray Real Estate. Together, we are available to help with all of your real estate needs!
Tuesday, June 7, 2011
Shorter Sales - homebuyers can catch a break as banks make nontraditional purchases more accessible
June 2
By Eve Mitchell
--When it comes to short sales, the real estate transaction involving a mortgage that is worth more than the home it is tied to has long belied its name as a quick deal.
That is starting to slowly change, thanks to increased bank staffing, a Department of Treasury program that aims to speed up the transactions and more of a general acceptance of the deal.
Just ask first-time homeowners Michael and May Manlapeg, who were renting a house in Walnut Creek a few months ago. After signing a pending sales contract for a home in Pleasant Hill in late January, they thought it would take as much as six months for the deal to go through. Escrow ended up closing in slightly less than three months. Regular home sales typically take 30 to 60 days to close escrow after a pending sales contract is signed.
"I knew it could it could be a long, difficult process. It went faster than we expected," said Michael Manlapeg, 34, of the four-bedroom, three-bathroom property in Pleasant Hill they purchased in a short sale for $550,000.
The family moved to the Bay Area five years ago after Michael Manlapeg accepted a job as an information technology manager at an employee-benefits administration company in San Francisco.
The Manlapegs were looking for a home in the Walnut Creek/Pleasant Hill area that could accommodate their four young children, but they found places that fit the bill were out of their price range. So, they turned to a short sale, which allows
for a home to be sold for less than what is owed on the mortgage -- provided the transaction is approved by the lender.
Unlike foreclosures, which can sell at substantial discounts, short sales tend to be priced closer to fair-market value. Still, some short-sale bargains can be struck by negotiating down the price based on work that needs to be done on a property.
The $550,000 price the Manlapegs paid reflected a $50,000 negotiated discount to offset needed roof work and minor repairs.
The couple financed the property with a 30-year, fixed-rate Federal Housing Administration loan with a 4.75 percent interest rate and a 3.5 percent down payment. Their new home features a pool and creekside deck area; it was once listed as a regular sale for $1.1 million in 2008. "We got a great price," Michael Manlapeg said.
Short sales are taking less time to do now than a year ago, said Kevin Kieffer, a real estate agent with the Danville office of Keller Williams Realty, who represented the Manlapegs in their purchase. "Banks have staffed up and put systems in place," he said.
Still, Kieffer said time challenges can pose a problem for short sales. "I generally tell (buyers) to be prepared to wait up the 120 days to close, and it could go longer. Those who are renting can be the ideal candidate."
In April, short-sale transactions accounted for 18.6 percent of existing Bay Area home sales, up from 17.6 percent in April 2010 and up from 12.9 percent two years ago, according to MDA DataQuick, a real estate tracking firm.
While some short sales are not taking as long as they used to, there is room for improvement, said Colleen Badagliacco, head of the California Association of Realtors' short sales task force and an agent with the San Jose office of Altera Real Estate.
A California Association of Realtors survey conducted during the last two weeks of 2010 found that fewer than three of every five short sales in the Golden State closed last year. Sixty-three percent of those surveyed said that it took more than 60 days for lenders to provide a written response that approved or rejected an offer from a buyer.
However, many large lenders have begun streamlining the process in response to changes made earlier this year to a voluntary Department of Treasury program that aims to speed up short sales, even though that program has seen less than 5,500 short sales completed since it began in April 2010.
Banks participating in the Home Affordable Foreclosure Alternatives program, or HAFA, are making progress in speeding up short sales, Badagliacco said.
"One of the key components (of HAFA) is that lenders will give a response to an offer within 45 days. ... Because of that, they have had to streamline their processes, which is helping them respond faster to loans that are not in the HAFA program. That certainly is a step forward," she said, adding that most smaller lenders have not done as much streamlining.
HAFA provides financial incentives to lenders and $3,000 in relocation assistance to sellers to encourage short sales. It is geared to homeowners who qualified for a trial loan modification through the Home Affordable Modification Program but were unable to obtain a permanent modification. Homeowners struggling to pay their mortgages can request to be evaluated for the HAFA program.
When HAFA was launched in April 2010, there was no time requirement for participating lenders to provide a yes-or-no answer to homeowners seeking approval for a short sale. That changed Feb. 1, when a new requirement required an answer in 30 calender days, which has since been increased to 45 days starting June 1. The 45-day deadline also applies to homeowners not in the program who already received an offer and want it to proceed as a HAFA short sale.
The program applies to loans that are not backed by mortgage giants Fannie Mae or Freddie Mac. However, Fannie Mae and Freddie Mac rolled out their own short-sale programs in August. While some differences exist, a $3,000 incentive paid to sellers who close a short sale applies to all three programs.
Many homeowners who fell out of the Home Affordable Modification Program now are turning to short sales, said Anastasia Stephanopoulos, a real estate agent with the Walnut Creek office of J. Rockcliff Realtors, an East Bay brokerage. Most of the short sales her office is handling are not HAFA short sales, she said.
"The banks are becoming more automated with how they are approaching the process. (Short sales) are moving much more quickly," she said. "It's really more cost effective to accept a short sale than to let it go to foreclosure. ... I'm finding a lot more short sales and fewer foreclosures."
However, she noted, short sales can be complicated when there are two or more loans on the property.
Normally, when a loan amount is forgiven by the lender as a result of a foreclosure, loan modification, or short sale, of the amount is typically treated as taxable income. But a temporary change to the tax code revised that through tax year 2012, which means forgiven debt can be excluded from taxable income at the state and federal level if the loan was used to acquire, build or substantially improve the taxpayer's primary home. Consult a tax professional for more details.
The seller's credit score also may be affected, although not as much as it would be in a foreclosure, Stephanopoulos said.
Even though the seller may face some financial drawbacks from a short sale transaction, "They are able to sell their house and put some closure behind them. I think sellers are happy to put it behind them," she said.
emitchell@bayareanewsgroup.com
By Eve Mitchell
--When it comes to short sales, the real estate transaction involving a mortgage that is worth more than the home it is tied to has long belied its name as a quick deal.
That is starting to slowly change, thanks to increased bank staffing, a Department of Treasury program that aims to speed up the transactions and more of a general acceptance of the deal.
Just ask first-time homeowners Michael and May Manlapeg, who were renting a house in Walnut Creek a few months ago. After signing a pending sales contract for a home in Pleasant Hill in late January, they thought it would take as much as six months for the deal to go through. Escrow ended up closing in slightly less than three months. Regular home sales typically take 30 to 60 days to close escrow after a pending sales contract is signed.
"I knew it could it could be a long, difficult process. It went faster than we expected," said Michael Manlapeg, 34, of the four-bedroom, three-bathroom property in Pleasant Hill they purchased in a short sale for $550,000.
The family moved to the Bay Area five years ago after Michael Manlapeg accepted a job as an information technology manager at an employee-benefits administration company in San Francisco.
The Manlapegs were looking for a home in the Walnut Creek/Pleasant Hill area that could accommodate their four young children, but they found places that fit the bill were out of their price range. So, they turned to a short sale, which allows
for a home to be sold for less than what is owed on the mortgage -- provided the transaction is approved by the lender.
Unlike foreclosures, which can sell at substantial discounts, short sales tend to be priced closer to fair-market value. Still, some short-sale bargains can be struck by negotiating down the price based on work that needs to be done on a property.
The $550,000 price the Manlapegs paid reflected a $50,000 negotiated discount to offset needed roof work and minor repairs.
The couple financed the property with a 30-year, fixed-rate Federal Housing Administration loan with a 4.75 percent interest rate and a 3.5 percent down payment. Their new home features a pool and creekside deck area; it was once listed as a regular sale for $1.1 million in 2008. "We got a great price," Michael Manlapeg said.
Short sales are taking less time to do now than a year ago, said Kevin Kieffer, a real estate agent with the Danville office of Keller Williams Realty, who represented the Manlapegs in their purchase. "Banks have staffed up and put systems in place," he said.
Still, Kieffer said time challenges can pose a problem for short sales. "I generally tell (buyers) to be prepared to wait up the 120 days to close, and it could go longer. Those who are renting can be the ideal candidate."
In April, short-sale transactions accounted for 18.6 percent of existing Bay Area home sales, up from 17.6 percent in April 2010 and up from 12.9 percent two years ago, according to MDA DataQuick, a real estate tracking firm.
While some short sales are not taking as long as they used to, there is room for improvement, said Colleen Badagliacco, head of the California Association of Realtors' short sales task force and an agent with the San Jose office of Altera Real Estate.
A California Association of Realtors survey conducted during the last two weeks of 2010 found that fewer than three of every five short sales in the Golden State closed last year. Sixty-three percent of those surveyed said that it took more than 60 days for lenders to provide a written response that approved or rejected an offer from a buyer.
However, many large lenders have begun streamlining the process in response to changes made earlier this year to a voluntary Department of Treasury program that aims to speed up short sales, even though that program has seen less than 5,500 short sales completed since it began in April 2010.
Banks participating in the Home Affordable Foreclosure Alternatives program, or HAFA, are making progress in speeding up short sales, Badagliacco said.
"One of the key components (of HAFA) is that lenders will give a response to an offer within 45 days. ... Because of that, they have had to streamline their processes, which is helping them respond faster to loans that are not in the HAFA program. That certainly is a step forward," she said, adding that most smaller lenders have not done as much streamlining.
HAFA provides financial incentives to lenders and $3,000 in relocation assistance to sellers to encourage short sales. It is geared to homeowners who qualified for a trial loan modification through the Home Affordable Modification Program but were unable to obtain a permanent modification. Homeowners struggling to pay their mortgages can request to be evaluated for the HAFA program.
When HAFA was launched in April 2010, there was no time requirement for participating lenders to provide a yes-or-no answer to homeowners seeking approval for a short sale. That changed Feb. 1, when a new requirement required an answer in 30 calender days, which has since been increased to 45 days starting June 1. The 45-day deadline also applies to homeowners not in the program who already received an offer and want it to proceed as a HAFA short sale.
The program applies to loans that are not backed by mortgage giants Fannie Mae or Freddie Mac. However, Fannie Mae and Freddie Mac rolled out their own short-sale programs in August. While some differences exist, a $3,000 incentive paid to sellers who close a short sale applies to all three programs.
Many homeowners who fell out of the Home Affordable Modification Program now are turning to short sales, said Anastasia Stephanopoulos, a real estate agent with the Walnut Creek office of J. Rockcliff Realtors, an East Bay brokerage. Most of the short sales her office is handling are not HAFA short sales, she said.
"The banks are becoming more automated with how they are approaching the process. (Short sales) are moving much more quickly," she said. "It's really more cost effective to accept a short sale than to let it go to foreclosure. ... I'm finding a lot more short sales and fewer foreclosures."
However, she noted, short sales can be complicated when there are two or more loans on the property.
Normally, when a loan amount is forgiven by the lender as a result of a foreclosure, loan modification, or short sale, of the amount is typically treated as taxable income. But a temporary change to the tax code revised that through tax year 2012, which means forgiven debt can be excluded from taxable income at the state and federal level if the loan was used to acquire, build or substantially improve the taxpayer's primary home. Consult a tax professional for more details.
The seller's credit score also may be affected, although not as much as it would be in a foreclosure, Stephanopoulos said.
Even though the seller may face some financial drawbacks from a short sale transaction, "They are able to sell their house and put some closure behind them. I think sellers are happy to put it behind them," she said.
emitchell@bayareanewsgroup.com
Reverse mortgages can be complicated
Reverse mortgage a tricky way to pull money from home
By AL HEAVENS
Reverse mortgages allow people 62 and older to borrow against their home equity. Like marriage, the experts say, these are arrangements not to be entered into unadvisedly or lightly.
That's because reverse mortgages are actual loans that must be repaid in full - when you move, when you sell your house or upon your death, rather than in monthly installments.
But, said David Certner, AARP's legislative-policy director, it's something to consider "if you want to remain in your current home and don't have other options."
"If the one asset you have is your home, a reverse mortgage will let you turn it into a payment stream," Certner said. "Maybe you simply need a home-equity loan, or to sell the home and move to something smaller. For a lot of people who want to stay in their own homes, the reverse mortgage is one way to help accomplish that."
Though home values have dropped steeply since the real estate bubble burst in 2006, many older Americans have owned their houses for decades and have vast amounts of equity to tap into.
Yet of the millions of home loans originated between 1990 and 2010, just 660,000 were reverse mortgages, AARP says.
Why? Because reverse mortgages can be complicated, sometimes pricey affairs compared with the financial alternatives.
There are three kinds of reverse mortgages, but the lion's share - 95 percent - are Home Equity Conversion Mortgages insured by the Federal Housing Administration.
HECMs cost more than traditional mortgages. They have no income or medical requirements, and the cash can be used for any purpose, such as paying medical bills.
Currently, the national loan limit for a HECM is $625,500. How much you can borrow depends, among other factors, on your age, the appraised value of your home, and current interest rates.
The older you are, and the more equity you have in your house, the more you can borrow. Though 62 is the minimum age, many experts advise against reverse mortgages then - you may have a greater need to tap into your home equity later in life.
To qualify for HECMs, borrowers must own their properties outright or have small mortgage balances; occupy the properties as principal residences; and not be delinquent on any federal debts, such as income taxes.
Borrowers must participate in "consumer information sessions" provided by counselors approved by the Department of Housing and Urban Development. (These typically cost $125, Certner said.)
During the course of the reverse mortgage, you must pay your homeowners' insurance and property taxes, plus keep the house in good repair. If you don't, the loan can become due.
Advantages to reverse mortgages include:
-How you get the money is your choice: in fixed monthly payments, a lump sum, a credit line or a combination of the three. You can change the option any time for $20.
-Even if you receive more in payments than your home is worth, you will never owe more than the home's value.
-Loan advances are not taxable and generally don't affect Social Security or Medicare benefits.
-You retain title to your home.
The reverse mortgage must be repaid in full when the last surviving borrower dies or sells the home, or when it is no longer the primary residence. An HECM lets a borrower live in a nursing home or other medical facility for up to 12 months before the loan comes due.
After the home is sold and the reverse mortgage and fees are repaid, the remaining equity belongs to the borrower or heirs.
Among the disadvantages:
-Lenders, who must be FHA-approved, may charge servicing fees during the loan's term.
-Loans may carry variable interest rates tied to short-term indexes, although AARP says more than 70 percent now have fixed interest rates.
-If interest rates are fixed, you must borrow the maximum amount against your home's equity.
-Refinancing your existing mortgage or taking out a home-equity loan or line of credit may be a less expensive alternative to a reverse mortgage, which can have substantial upfront fees.
For example, the standard HECM loan charges a 2 percent mortgage-insurance premium up front on the home's value, not the amount borrowed. If you own a $400,000 house, the upfront premium would be $8,000, regardless of the loan amount.
You also will pay an origination fee to compensate the lender for processing the reverse mortgage. That fee can be up to $2,500 if your house is valued at less than $125,000. If your house is valued higher, lenders can charge 2 percent of the first $200,000, plus 1 percent of the amount over $200,000, with a cap of $6,000.
The HECM Saver Loan, which made its debut in October, charges only 0.01 percent of a home's value up front. But this loan usually carries a higher interest rate, and you can't borrow as much as you can with a standard HECM.
Closing costs for a reverse mortgage include an appraisal, a title search, and insurance, surveys, inspections, recording fees, taxes, and credit checks. You can pay for most such HECM costs through the proceeds of the loan. Though that means no out-of-pocket payments, it reduces the net loan amount available.
A lender may charge a monthly servicing fee of no more than $30 if the loan has an annually adjusting interest rate, $35 if the interest rate adjusts monthly.
Reverse-mortgage foreclosures have been rare - until recently.
"Because the borrower is responsible for paying taxes, insurance and upkeep," Certner said, tough economic times have "put a lot of people in trouble, especially in hard-hit markets like Florida."
By AL HEAVENS
Reverse mortgages allow people 62 and older to borrow against their home equity. Like marriage, the experts say, these are arrangements not to be entered into unadvisedly or lightly.
That's because reverse mortgages are actual loans that must be repaid in full - when you move, when you sell your house or upon your death, rather than in monthly installments.
But, said David Certner, AARP's legislative-policy director, it's something to consider "if you want to remain in your current home and don't have other options."
"If the one asset you have is your home, a reverse mortgage will let you turn it into a payment stream," Certner said. "Maybe you simply need a home-equity loan, or to sell the home and move to something smaller. For a lot of people who want to stay in their own homes, the reverse mortgage is one way to help accomplish that."
Though home values have dropped steeply since the real estate bubble burst in 2006, many older Americans have owned their houses for decades and have vast amounts of equity to tap into.
Yet of the millions of home loans originated between 1990 and 2010, just 660,000 were reverse mortgages, AARP says.
Why? Because reverse mortgages can be complicated, sometimes pricey affairs compared with the financial alternatives.
There are three kinds of reverse mortgages, but the lion's share - 95 percent - are Home Equity Conversion Mortgages insured by the Federal Housing Administration.
HECMs cost more than traditional mortgages. They have no income or medical requirements, and the cash can be used for any purpose, such as paying medical bills.
Currently, the national loan limit for a HECM is $625,500. How much you can borrow depends, among other factors, on your age, the appraised value of your home, and current interest rates.
The older you are, and the more equity you have in your house, the more you can borrow. Though 62 is the minimum age, many experts advise against reverse mortgages then - you may have a greater need to tap into your home equity later in life.
To qualify for HECMs, borrowers must own their properties outright or have small mortgage balances; occupy the properties as principal residences; and not be delinquent on any federal debts, such as income taxes.
Borrowers must participate in "consumer information sessions" provided by counselors approved by the Department of Housing and Urban Development. (These typically cost $125, Certner said.)
During the course of the reverse mortgage, you must pay your homeowners' insurance and property taxes, plus keep the house in good repair. If you don't, the loan can become due.
Advantages to reverse mortgages include:
-How you get the money is your choice: in fixed monthly payments, a lump sum, a credit line or a combination of the three. You can change the option any time for $20.
-Even if you receive more in payments than your home is worth, you will never owe more than the home's value.
-Loan advances are not taxable and generally don't affect Social Security or Medicare benefits.
-You retain title to your home.
The reverse mortgage must be repaid in full when the last surviving borrower dies or sells the home, or when it is no longer the primary residence. An HECM lets a borrower live in a nursing home or other medical facility for up to 12 months before the loan comes due.
After the home is sold and the reverse mortgage and fees are repaid, the remaining equity belongs to the borrower or heirs.
Among the disadvantages:
-Lenders, who must be FHA-approved, may charge servicing fees during the loan's term.
-Loans may carry variable interest rates tied to short-term indexes, although AARP says more than 70 percent now have fixed interest rates.
-If interest rates are fixed, you must borrow the maximum amount against your home's equity.
-Refinancing your existing mortgage or taking out a home-equity loan or line of credit may be a less expensive alternative to a reverse mortgage, which can have substantial upfront fees.
For example, the standard HECM loan charges a 2 percent mortgage-insurance premium up front on the home's value, not the amount borrowed. If you own a $400,000 house, the upfront premium would be $8,000, regardless of the loan amount.
You also will pay an origination fee to compensate the lender for processing the reverse mortgage. That fee can be up to $2,500 if your house is valued at less than $125,000. If your house is valued higher, lenders can charge 2 percent of the first $200,000, plus 1 percent of the amount over $200,000, with a cap of $6,000.
The HECM Saver Loan, which made its debut in October, charges only 0.01 percent of a home's value up front. But this loan usually carries a higher interest rate, and you can't borrow as much as you can with a standard HECM.
Closing costs for a reverse mortgage include an appraisal, a title search, and insurance, surveys, inspections, recording fees, taxes, and credit checks. You can pay for most such HECM costs through the proceeds of the loan. Though that means no out-of-pocket payments, it reduces the net loan amount available.
A lender may charge a monthly servicing fee of no more than $30 if the loan has an annually adjusting interest rate, $35 if the interest rate adjusts monthly.
Reverse-mortgage foreclosures have been rare - until recently.
"Because the borrower is responsible for paying taxes, insurance and upkeep," Certner said, tough economic times have "put a lot of people in trouble, especially in hard-hit markets like Florida."
Thursday, May 19, 2011
Real estate prospects bright in natural resource-rich region
The two questions everyone asks this commercial real estate broker are, “What’s going on in the market? Are prices ready to start rising?” My answers are always, “It depends.”
The price of both commercial and residential real estate depends largely on the demand for that real estate. As the Western Slope economy softened in 2009, demand for industrial building leases and sales, office space and general commercial space also softened. Many building tenants looked for ways to mitigate their expenses in a climate of lower gross incomes for their businesses. It seemed the entire commercial and industrial tenant world was suddenly attempting to renegotiate leases, leases that were established in the high-flying days of “Get a building in which we can operate, I don’t care what it costs.”
When fiscal reality hits a real estate market, landlords, tenants and owners sometimes suffer the consequences. Demand can become so lethargic that asking rents and list prices drop significantly. This picture fairly accurately describes the commercial and industrial real estate market over the last 2 1/2 years.
So, you ask, “What’s going on in the local market for real estate?” I’m glad you asked.
The Western Slope of Colorado continues to employ thousands of people in the businesses of extracting resources — coal, natural gas, oil, uranium and even rare earth minerals. That’s not to mention all the service companies involved in the industry.
The region still employees thousands of people in industries that are only predicted to grow over the next 10 or more years. Add to that the tourism industry that’s thriving because of our local wineries, mountain biking, sightseeing and hiking, and you’ll find reasons for real estate demand to continue to strengthen.
Concerns persist the national economy could weaken as a result of structural issues surrounding national debt and a weak dollar. But there’s a good chance the inhabitants of Mesa as well as Delta, Garfield and Montrose counties will continue to grow our job base and prosper far more than our neighbors in other states because of the natural resources prevalent here.
My answers to questions regarding the local real estate market, then, still depend on the ability of the local population and state to continue to find ways to provide more materials and services to meet growing national and international demand. If we work together to reasonably share our national resources with the rest of the world and pull together as we westerners typically do, our real estate markets will strengthen as our job base continues to expand and prosperity grows.
Here’s looking forward to our jobs future!
Real estate prospects bright in natural resource-rich region
Article date: May 19 2011
The two questions everyone asks this commercial real estate broker are, “What’s going on in the market? Are prices ready to start rising?” My answers are always, “It depends.”
The price of both commercial and residential real estate depends largely on the demand for that real estate. As the Western Slope economy softened in 2009, demand for industrial building leases and sales, office space and general commercial space also softened. Many building tenants looked for ways to mitigate their expenses in a climate of lower gross incomes for their businesses. It seemed the entire commercial and industrial tenant world was suddenly attempting to renegotiate leases, leases that were established in the high-flying days of “Get a building in which we can operate, I don’t care what it costs.”
When fiscal reality hits a real estate market, landlords, tenants and owners sometimes suffer the consequences. Demand can become so lethargic that asking rents and list prices drop significantly. This picture fairly accurately describes the commercial and industrial real estate market over the last 2 1/2 years.
So, you ask, “What’s going on in the local market for real estate?” I’m glad you asked.
The Western Slope of Colorado continues to employ thousands of people in the businesses of extracting resources — coal, natural gas, oil, uranium and even rare earth minerals. That’s not to mention all the service companies involved in the industry.
The region still employees thousands of people in industries that are only predicted to grow over the next 10 or more years. Add to that the tourism industry that’s thriving because of our local wineries, mountain biking, sightseeing and hiking, and you’ll find reasons for real estate demand to continue to strengthen.
Concerns persist the national economy could weaken as a result of structural issues surrounding national debt and a weak dollar. But there’s a good chance the inhabitants of Mesa as well as Delta, Garfield and Montrose counties will continue to grow our job base and prosper far more than our neighbors in other states because of the natural resources prevalent here.
My answers to questions regarding the local real estate market, then, still depend on the ability of the local population and state to continue to find ways to provide more materials and services to meet growing national and international demand. If we work together to reasonably share our national resources with the rest of the world and pull together as we westerners typically do, our real estate markets will strengthen as our job base continues to expand and prosperity grows.
Posted by Dale Beede on May 19 2011.
Thursday, April 7, 2011
1.3 Acres of Monument Views!
 For Sale Price: MLS#: 653786 Bedrooms: 4 Bathrooms: : 4.00 Square feet: 3885 Year Built: 1993 Property Description Amazing Monument & 360 degree valley views, rests on 1.3 acres tucked at the base of the Monument & the end of a quiet cul-de-sac. Almost 4000 sq ft ranch with bonus room above garage, many living areas, 4 bedrooms + office, large laundry/mud room, newer granite in Cook's kitchen, oversized 3 car garage, tile roof, garden beds, private patio with sun & shade & outdoor eating area. One bedroom area could be guest/mother-in-law set up. You must see this spacious floor plan & low maintenance living under the red rocks! No HOA, no covenants, RV parking okay & room for toys.  Shannon Koch Phone: 970.433.3831 Search the Realtor Database for Properties All information in this site is deemed reliable but is not guaranteed and is subject to change.  Equal Housing Opportunity |
Now is the time to buy AND sell real estate!
This is the best time, EVER, to buy a home. Right now, this month. And it may be the best time to sell in this market as well. We all know about the large number of homes on the market, low mortgage rates, and cheap prices. However, a big part of that is changing and soon.
FHA mortgage insurance is increasing next month from .9% to 1.1%, a 20% increase in mortgage insurance. And mortgages themselves will be changing. Mortgage requirements will become significantly tougher. This may mean higher down payments and higher credit scores. There is serious consideration in Washington of returning to the days when higher down payments were the norm. The Obama administration is interested in increasing Fannie and Freddie-backed loans to a 10% down payment minimum. Sheila Blair, chair of the FDIC, proposes 20% down payments. Many lenders in the conventional market are already there.
What about FHA? FHA funds come with caveats i.e. tax impounds, forced insurance, MIP fees paid in the beginning, and higher interest rates. So if a borrower puts down 20% or more on a non-government backed loan, the rates are usually lower, impounds are not required, and mortgage insurance is illegal. We are creating a new sub-prime market where buyers with less down must pay extra fees.
The Obama administration and Congress are looking at proposals to change the secondary mortgage market as well. What they decide to do could affect the availability and affordability of mortgages. If they do it correctly, fixed-rate financing at affordable prices will remain widely available. If they are not correct, and this is the government we are talking about here, affordable financing for middle-class households will be very difficult.
The bottom line: Now, right now, is the time to buy. Even if housing prices sag further increased fees and expenses in mortgages will wipe out those savings. And now is the time to sell. Buyers can easily obtain mortgages to buy your home TODAY!
Thank you to Donald James for your newsletter information
FHA Loans....new MIP, effective April 18th!
1. FHA is increasing the annual Mortgage Insurance Premium (Paid Monthly) for FHA Loans – Effective April 18, 2011
2. The customers/loan must be a REAL DEAL (with a valid property address and sales contract for purchase) for us to order a case number.
3. Example of impact to customer:
a. Today: Loan amount is $200,000.00 currently MIP is .90% = $1800.00 annual /divided by 12 months = $150.00 included in monthly payment for FHA loans.
b. After April 18: Loan amount is $200,000.00 MIP is 1.15% = $2300.00 annual / divided by 12 months =$191.67 $41.67 INCREASE in the customers payment on an FHA loan.
Here is here contact information:
Kelly Romatzke
Home Mortgage Consultant
Wells Fargo Home Mortgage
Direct: 970-263-2408
kelly.romatzke@wellsfargo.com
Thursday, January 27, 2011
Foreclosures and Short Sales
Have you received a preforeclosure letter from your lender?
First of all, don't be ashamed. Millions of homeowners are in your situation – many times through no fault of their own. A job loss, a serious illness or other circumstances can put you in danger of foreclosure.
The economic downturn has led to many homeowners being "under water" in their loans, meaning they owe more than their home is worth, making it impossible to refinance.
If you've become one of those millions, don't panic. Foreclosure, and its accompanying effect on your credit, is not inevitable. There are many options out there, and your circumstances may make one of those options feasible and desirable for you.
To keep your options alive, you need to communicate with your lender. Many homeowners have lost their homes to foreclosure without ever contacting their lender.
Many lenders would rather not foreclose. They take a large financial hit on a foreclosure. So in many cases, they'll consider viable alternatives. Some of these alternatives may keep you in your home.
Loan Modification
While only certain homeowners will be able to take advantage of this alternative, it may be your best option because it keeps you in your home and typically results in the least damage to your credit.
Your lender may be willing to modify the terms of the loan, whether it's reducing the principal, lowering the interest rate or other creative strategies to make the loan affordable for you. As part of the stimulus package, the U.S. government has programs to provide incentives for banks that use this strategy as an alternative to foreclosure.
Mortgage and foreclosure terms defined.
Short Sales
This is the fastest-growing foreclosure alternative. Many lenders will allow a Short Sale, when the home sells for less than the amount of the loan. This is attractive for lenders because they lose less money than in a foreclosure. Also, Short Sales generally take less time than foreclosures, so the banks don't have to carry the properties on their books as liabilities.
And it's attractive for homeowners because the impact on their credit is far less than in a foreclosure. You may be able to buy another home in as little as two to three years after a Short Sale, compared with a typical seven-year wait after a foreclosure.
Short Sales are paperwork-intensive, and there are many, many details involved. If you're considering this option, it's critical to work with a trained real estate agent who knows all the steps required to successfully complete a Short Sale.
Keep in mind that no matter which option you choose, there may be tax and other financial consequences. You should consult with a tax advisor or legal expert.
Foreclosure (Cash for Keys)
One of the biggest problems in foreclosures is that homeowners sometimes physically damage the property, or even sell some of the fixtures, before leaving. Needless to say, this is not a good idea. It may expose the homeowners to financial and legal liability. It also makes the properties much more difficult to sell.
To prevent this, some lenders offer a program called "Cash for Keys." The homeowners receive a check for vacating the property within a certain time period and leaving it in good condition. If you have no alternative other than foreclosure, you should ask the bank about this option.
Tips From HUD
The U.S. Department of Housing and Urban Development has 10 tips for avoiding foreclosure:
Don't ignore the problem.
Contact your lender as soon as you realize you have a problem.
Open and respond to all mail from your lender.
Know your mortgage rights.
Understand foreclosure prevention options.
Contact a HUD-approved housing counselor.
Prioritize your spending.
Use your assets.
Avoid foreclosure prevention companies.
Don't lose your house to foreclosure recovery scams.
Questions and Answers About the Simplified Short Sale Process
What is a Short Sale?
In a Short Sale, a lender agrees to let a homeowner facing financial hardship sell a home for less than the amount of the mortgage owed. A Short Sale is an attractive alternative to foreclosure, and typically not pursued until after other efforts to keep the owner in the home have been exhausted. There are potential tax consequences that should be discussed with a tax professional. Read RE/MAX's tips on preventing foreclosure.
Why is a Short Sale better than foreclosure?
A Short Sale can be less damaging to the borrower's credit. The former owner can qualify for a mortgage backed by Fannie Mae or Freddie Mac to buy another home in as few as two to three years - far sooner than if there had been a foreclosure. Short Sales also help protect other property values in the community by keeping the home out of potential disrepair.
Why has the U.S. Treasury issued new Short Sale guidelines?
Because of the challenges many homeowners have faced in their attempts at Short Sales, RE/MAX has worked closely with major lenders, the U.S. Treasury and other federal agencies to streamline and standardize the process. The new guidelines are in response to this advocacy by RE/MAX and others in the industry. Short Sales are seen as a critical component in stemming the increasing number of foreclosures and stabilizing the housing market.
What's been improved in the Short Sale process?
Under the Treasury's Foreclosure Alternatives Program, mortgage servicers have 10 business days to respond to a Short Sale offer. In the past, a lack of timely response has been one of the main reasons for delayed or derailed Short Sales. Also, paperwork and documentation are now standardized. Previously, such procedures varied widely between lenders. Various deadlines in the Short Sale process also have been standardized.
What's improved for the homeowner?
Under the Treasury program, a successful Short Sale will release the borrower fully from the primary mortgage obligation. This lender may not pursue a deficiency judgment. Additionally, homeowners who complete Short Sales are eligible to receive $3,000 to offset the expense of moving from the home.
What's the incentive for a primary lender to approve a Short Sale?
Using program guidelines, lenders will determine a minimum acceptable offer for the property. Typically a lender's loss on a Short Sale is less than the loss it faces should the property go into foreclosure. Through the Treasury program, mortgage servicers receive $1,500 for every Short Sale successfully closed.
How does the program work?
If the owner of a principal residence does not qualify for refinancing and has exhausted Making Home Affordable loan-modification options - or if they make a direct Short Sale request to a lender in the program - the lender determines if a Short Sale is possible. If it is, the borrower is given at least 120 days (up to a year, depending on local market conditions) to sell the home using a real estate agent experienced in the local market. Meanwhile, the foreclosure process can move forward, but it cannot be finalized until after the marketing period has expired. During the marketing period, lenders must respond to a fully completed "request for approval of a Short Sale offer" within 10 business days.
What's the best way to find a real estate agent to handle a Short Sale?
If you do not already have a RE/MAX agent to work with, find a real estate agent here on remax.com.Identify your market area and then search for an agent with one of the following designations: Certified Distressed Property Expert (CDPE), Five Star Professional (FSP) or Short Sales & Foreclosure Resource (SFR). You can also consider agents with the residential sub-specialties of "Foreclosure Property" or "Short Sales."
Does the borrower continue to make primary loan payments during the Short Sale marketing period?
Yes, in some cases. The amount is determined by the loan servicer in accordance with terms of the Treasury guidelines. If there is a payment, it cannot exceed 31 percent of the borrower's gross monthly income.
What if there's a second mortgage, home equity line of credit or other junior lien?
The borrower is responsible for either paying off such debt or negotiating release from the debt and any potential for deficiency judgment. A RE/MAX real estate agent experienced with Short Sales can help you with this process. The Treasury program provides some financial incentive for junior lenders and investors who hold such loans to participate in the Short Sale and release the liens.
Are there restrictions on who can make a Short Sale offer?
Yes. Among the program's many restrictions are requirements that the property not be sold to a relative and not be occupied or repurchased by the former owner. The buyer may not receive any funds from the transaction and cannot sell the property for at least 90 days after closing.
Is a Short Sale the only alternative to imminent foreclosure?
If a Short Sale is not successful, the lender can opt to accept a "deed in lieu of foreclosure." In this process, the homeowner gives clear title to the property to the lender. Under terms of the Treasury program, the borrower is released from the remaining mortgage obligation and can still receive the $3,000 for relocation expenses. The borrower then has 30 days to vacate the property. In some cases, it's possible to pursue a "deed in lieu of foreclosure" without first pursuing a Short Sale.
Is there an expiration date for the Treasury program?
Borrowers have until Dec. 31, 2012, to enter into a Short Sale or deed-in-lieu agreement with their lender under terms of the Treasury program.
Are Short Sales still possible for borrowers and lenders not covered by the Making Home Affordable Program?
Yes. Short Sales remain possible for borrowers with mortgages not covered by the Treasury program's incentives and guidelines. RE/MAX agents with Short Sale expertise can help such homeowners pursue a Short Sale with their mortgage servicer or investigate other possible options.
Fannie Mae and Freddie Mac have issued their own Short Sale guidelines, which are similar to the Treasury plan, but different in some respects.
source: http://www.remax.com/
Saturday, January 22, 2011
Mesa County 2010 Real Estate Update
Quick View of Mesa County Real Estate 2010 -
Foreclosures were up, prices were down, building permits were down, but buyers were/are out there and properties are still selling! They just have to be priced competitively with the competition!
Foreclosures were up, prices were down, building permits were down, but buyers were/are out there and properties are still selling! They just have to be priced competitively with the competition!
Tuesday, January 4, 2011
New Absorption Rates Jan 2011
With today's market inventory, this is how long you could expect your home to be on the market (months of inventory column)....unless it is the best priced and in the best condition!
Wednesday, December 22, 2010
Wednesday, November 3, 2010
New Price for this lovely Redlands Condo!
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Try out my new QR-Code....
Got to love technology! If you have a Smartphone and a QR reader app you can check QR-Code out... (links to my website)
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