What's New With The Tax Credit Extension?

Here is a news article from the Wall Street Journal about the Home Buyer Tax Credit Closing Extension, which so far has been part of a bill that was voted down, but looks like recently was brought to the House as a stand alone bill.

Congress Appears Unlikely to Extend Tax Credit Closing Deadline
By Nick Timiraos
The Wall Street Journal,June 29, 2010, 8:30 AM ET

And hear is the new latest from Inman News...things continue to change daily so keep coming back for updated info:

House OKs extension of tax credit closing deadline
Senate could vote Wednesday
By Inman News, Tuesday, June 29, 2010.
Inman News

June Real Estate Newsletter

June 18, 2010

Tax Credit Closing Date May Be Extended
**This does NOT mean that the tax credit has been extended or that anybody who got into contract after April 30th, 2010 will be eligible for the tax credit. It simply means that those properties that were put into contract by the April 30th deadline may have longer than June 30th to close, possibly even out to September. See article here.

A Buyer's Quick Guide to Short Sales
**John gives a brief overview of what buyers should look for in an agent representing them in a short sale, what to expect and how to have all your ducks in a row.
Part 1 - Preapproval
Part 2 - Decide if you have the patience that will be required of you as a buyer of a short sale
Part 3 - Make sure that your buyer's agent is on board with the short sale process
Part 4 - Writing the offer
Part 5 - Approval and closing

See Quick Guide and other short sale information here.

CBH Homes on YouTube with Home Maintenance Tips
**CBH Homes has a series of YouTube videos describing how to fix, maintain, set, etc all kinds of things in a home. Of course they are going to be focusing on CBH homes and the products in such homes, but I think it will be helpful for everyone even if you don't have a CBH home. I will be periodically adding them to my blog. For now, here are a few that I've posted.

-How to set sprinkler timer
-How to clear a garbage disposal
-How to change a furnace filter

ListingBook!
**Listingbook is a program that helps us work together in finding a property that fits your needs. If you haven't done so yet and would like to sign up for a (free) Listing Book Account click on this link and fill out the "Search Like an Agent" form on the right hand side (phone number isn't required). If I have sent you an invitation, all you have to do is confirm the invitation. If I sent you an invitation and you disregarded it because you didn't know what it was, let me know and I can send you a new one. Here's a brochure that explains it further.

Home Buyer Tax Credit Extension Fails

I have heard rumors that this amendment could still be put in a different bill and voted to approve retroactively. But as it stands now, those of you that are in contract as of April 30th but still haven't close better get it done by Wednesday or you may be out of luck.

Homebuyers tax credit extension fails
by Associated Press
Published: June 28,2010
Time posted: 8:54 am
Tags: Real Estate

A Senate jobless aid bill that included an amendment extending the homebuyers tax credit until September 30 failed to pass the Senate on June 24.

The vote was 57-41, three short of the 60 needed to beat a Republican filibuster.

The bill, H.R. 4123, included an amendment allowing homebuyers a three-month extension on the tax credit, allowing them until September 30 to close on a home. But the extension only applied to buyers who signed purchasing contracts before the original April 30 deadline.

The bill would have provided repeat homebuyers a $6,500 tax credit and first time homebuyers a $8,000 tax credit.

Last week, the U.S. Census Bureau and the U.S. Department of Housing and Urban Development announced home sales fell 53 percent in May for the 13 western states of the U.S. Nationally, home sales dropped 33 percent over the same time period.

Information courtesy of Idaho Business Review

CBH Homes - How to Change a Furnace Filter

Tax Credit Closing Date May Be Extended

This does not mean that the tax credit will be extended, it simply means that those properties that were put into contract by the April 30th deadline may have longer than June 30th to close.

Here is a USA Today article about it.

FHA 203K Loan Requirements

In a 203k transaction the client must be qualified for the purchase price, plus repairs plus a 15% repair overage account.

Example:
$100,000.00 Purchase Price
$ 25,000.00 Repairs
$ 3,750.00 Cost Overrun Account (Any unused funds will result in a principle reduction.)
$128,750.00 Initial Loan Amount (Plus Up Front MI if financed)

This Rehab loan has a 60 day turn time. (This is from the time that I get the complete application and all supporting income, asset and down payment funds documentation); so from accepted offer to close is at least 75 days.

Some key requirements for FHA203k:
· Must be owner occupied.
· 45% Max DTI
· Minimum of $5,000.00 repairs.
· Subject to FHA County max total loan amounts (Ada $303,750.00)
· Can be used for Purchase or Refinance.
· Work will not begin until loan is funded.
· Work must be completed within 180 days of funding.
· All work must be performed by a licensed contractor (Not the homeowner)
· All work will require 2 bids from a licensed contractor

Please call me with any additional questions.

Information couresty of:
Ricky Catalano
Mortgage Loan Officer
776 E Riverside Dr Ste 100
Eagle, ID 83616
Office: (208) 938-6600
Mobile: (208) 440-9967
Fax: (208) 938-5749

Loan Quality Initiative from Fannie Mae

Fannie Mae’s new Loan Quality Initiative (LQI) mandates become effective on June 1, 2010, and this will definitely curtail borrowers’ spending before their home closings. The June 1 changes are part of a new effort by mortgage giant Fannie Mae to cut down on slipshod underwriting by lenders and frauds by borrowers. Fannie's so-called "loan quality initiative" will require lenders not only to pull two credit reports for each mortgage transaction but to perform additional verifications of borrower occupancy plans for the property, Social Security numbers and Individual Taxpayer Identification Numbers, among other changes. These last minute credit checks could result in a closing delay, pricing adjustment, or, worst, loan approval cancellation.

The last-minute credit report will be designed to find out whether a borrower has obtained — or even shopped for — new debt between the date of the loan application and the closing. If borrowers have made applications for credit of any type — for furnishings and appliances for the new house, a car, landscaping, a home equity line, a new credit card — the closing could be put on hold pending additional research by the lender.

Information couresty of:
Ricky Catalano
Mortgage Loan Officer
776 E Riverside Dr Ste 100
Eagle, ID 83616
Office: (208) 938-6600
Mobile: (208) 440-9967
Fax: (208) 938-5749

Local News & Information

Property tax not popular, but Boise counts on it
by Anne Wallace Allen
Published: June 14,2010
Time posted: 8:14 am

Although Idaho residents don’t like the property tax and think it’s unfair, the state’s largest city relies more heavily on that tax than others of similar size to pay for its police, parks, and other services.

In a survey of ten western cities in eight states, Boise State University’s Public Policy Center found that Boise received 24 percent of its revenues from taxing business and personal property - the highest proportion of all the cities surveyed.

The property tax typically makes up 16 percent of municipal revenues in all cities around the country. The rest comes from fees, service charges, federal aid, state revenue and other taxes.

The property tax is considered a more stable revenue source than the sales tax, said Stephanie Witt, who is director of the Public Policy Center and the Social Science Research Center at Boise State.

“The downside is people just don’t like the property tax,” she said. “It’s complicated, it’s highly technical, and they fear losing their home.”

Read full article at IdahoBusinessReview.com or click on this link....

A Buyer's Quick Guide to Short Sales - Part 5

Approval and Closing

- Once the offer and proceeds are approved by the short sale lender they will issue an approval in writing. Once this approval is issued if you haven’t done the inspection this needs to be done ASAP – concerning the inspection – most short sales are sold as is and the Seller is likely unable or very limited as to what repairs can be done. Make sure that your lender is aware of the time frames to get loan docs to title – most short sale lenders require the closing HUD 24-72 hours prior to closing. Encourage your lender to get your loan docs to title early not late. If the closing is delayed it could result in additional fees to you as a buyer and if deadlines are missed there is no guarantee the short sale lenders will give an extension – this lands you as a buyer without a house and the sellers likely in foreclosure.

Make sure you address all these items on a short sale to be a well informed short sale buyer and you’ll increase the probability that you’ll find the right property for you.

This is not to be construed as financial or legal advice and it is recommended that readers seek the advice of qualified professionals.

A Buyer's Quick Guide to Short Sales - Part 4

Writing the offer

- Keep in mind that in most short sale situations sellers are in a tough spot – while this can be a good opportunity to get a well priced property – be sensitive to the sellers situation. There are different strategies on preparing offers. The following are items to consider:

- Pricing – does the offer allow you to come up a little should the short sale bank request a higher purchase price. Does this matter to you?

-Time frames – generally a longer, more realistic time frame that you are willing to commit to the process the seller may view your offer as stronger and may set your offer apart from others.

- Inspections – do you want to do it before or after the lender issues the approval letter? There are advantages and disadvantages to both.

- Title Company and Escrow officer – recognize that generally the listing agent will have the title company working on the file already and making sure that the escrow officer prepares estimated settlement statements, etc. can help minimize surprises as closing nears. Having you brother's, sister-in-law's friend be the escrow officer because you want them to may not be a battle to fight if you want to win the war.

A Buyer' Quick Guide to Short Sales - Part 3

Make Sure that your Buyer Agent is on board with the short sale process.

- Some agents don’t have the patience for short sales given the 4 week to 4 month time frame.

-It is reasonable to expect your agent be willing to do the following items to qualify the short sale property(s) that you are interested in:

*Check on the listing agent – how many short sales they have done in the last year or so and what their close ratio is – in other words how many does the listing agent close out of those that they take on as short sales. This can be a pretty good bearing on the odds of the success of the short sale.

*Check on how many loans there are on the property, what type of loans are on the property, who is the Servicer (short sale lender)

*Check on how the Seller will be dealing with multiple offers – will one be sent to the bank and others be held as backup offers, will all offers be sent to the bank?

All of these items will help you as a buyer qualify a prospective short sale property and decide what property is worth your time.

A Buyer's Quick Guide to Short Sales - Part 2

Decide if you have the patience that will be required of you as a buyer in a short sale

-In most situations it will take between 4 weeks to 4 months to get a response from the short sale lender. This time frame can vary dependent on a number of factors that involve the short sale lender(s), type and number of loans involved, loss severity, and the capability of the person negotiating the short sale for the Seller.

-Some deals can be found going the short sale route but be honest with yourself. If you don’t have the patience to work through a 4 week to 4 month time frame a short sale might not be the best fit for you.

A Buyer's Quick Guide to Short Sales - Part 1

Preapproval
- Get Preapproved so you know how much you can afford and how much you feel comfortable paying for a house. This helps make sure that you are looking at the right houses and your agent can be sending you the right properties. When you see the right property you will be ready to make an offer.

- You will need to have a preapproval letter to submit with a short sale offer as the Seller and Short sale lender will want a copy in their file to verify that you are qualified. This can also help your offer look stronger should you be competing in a multiple offer situation.

CBH Homes - How to Clear a Garbage Disposal

6/1/2010-TitleOne News You Can Use

We're Still Getting a Little Bit of Good Press Here.....

States Where Incomes Will Soar, and Stagnate

The main economic worry these days is jobs—specifically, a lack of them. Still, most Americans who want a job have one, and as the economy gradually improves, workers will focus less on job security and more on boosting their pay, getting ahead, and reclaiming prosperity.

Workers obviously have some control over how much they earn, since they can work more, get training that makes them more valuable, or simply persuade the boss that they deserve a raise. But a lot depends on where you live. Some areas have a dynamic economy that's able to create jobs briskly, while other places are over-reliant on shrinking industries or simply lack an economic spark. To identify states with the strongest and weakest economic prospects, we analyzed projections for personal income growth provided by forecasting firm IHS Global Insight. While it's just one economic indicator, growth in personal income is a good proxy for rising living standards. It reflects job growth—since a tight labor market is one thing that drives up wages—along with the quality of jobs and other factors that indicate a healthy economy. "Personal income growth translates into increased prosperity," says Mohammad-Qamar Siddiqui, a regional economist with IHS Global Insight. "It clearly shows the purchasing power for residents."

Income-growth variations among states also highlight national trends that might seem surprising. Several Midwestern states that remained relatively stable during the housing bust are poised for the lowest income growth, largely because there's not much to juice the economy. Some of the hardest-hit states, meanwhile, are likely to see a healthy rebound in income growth. Here are the 10 states projected to have the highest and lowest growth in income over the next five years:

HIGHEST

Idaho (average income-growth rate: 5.9 percent). The recession hit hard in this Rocky Mountain state as well, with some lumber, furniture, and technology companies closing down and many others slashing jobs. But compared with higher-cost western states like California, Idaho is still an appealing place for companies to set up shop, and new businesses should help lift the broader economy. Technology has displaced lumber as the biggest private-sector source of jobs in Idaho, which will help soften the impact of a prolonged drought in construction.

See full article and the other "highest and lowest" states here...

Current Interest Rates Still Low

Daily Real Estate News May 27, 2010 Share

Post-Tax Credit Buyers May Save Money

Missing the tax credit deadline might have seemed like a big mistake to some home buyers, but waiting could have been the smartest thing to do.

Interest rates have fallen so dramatically since April 30th that the typical purchaser of a $350,000 home, financed with a $280,000 mortgage, would have saved a bundle by waiting until May.

At April’s average rate of 5.34 percent, a home buyer would have locked in a 30-year fixed rate loan with a monthly payment of $1,561.82.

The same borrower could have snagged a 30-year fixed rate loan at a rate of 4.625 percent in May and paid $1,439.59 per month.

That’s a $1,467 annual savings. Over 30 years, it’s a $44,003 savings, dwarfing the tax credit.

Source: Informa Research Services (05/26/2010)

Article courtesy of Realtor Magazine