Selling Home For Less Than Owed

Selling Idaho Home For Less Than Owed

*  When should you consider selling your house under its present value?
* Tax issues should be taken into consideration
* Be upfront with your lender about why you’re selling your house for less than it’s worth

If you’ve taken out a large mortgage, and perhaps refinanced to cover remodeling or other expenses, you may find yourself unable to keep up with your mortgage payment after a layoff, divorce or illness. More and more people are finding they need to sell their homes for less than they owe on the mortgages, known as a “short sale.”

Selling short is definitely better than foreclosure, which stays on your credit record for ten years. But it’s best to try to work things out with your lender before going through the embarrassing and laborious process of selling your home on a short sale.
Tax Issues

Before you put your home on the market for a short sale, it’s best to talk with a tax advisor about possible tax repercussions. It’s likely the IRS will consider the difference between the value at which you sell your home and the mortgage balance as “income” on which you’ll have to pay taxes.

An exception to this rule is if you can prove that you were “insolvent” – that your debts were bigger than your assets- before your mortgage lender agreed to a short sale of your property. A tax advisor will be able to tell you for sure whether you’d be considered insolvent by IRS standards.

If you can’t prove you’re insolvent, and the tax bill on a short sale would be more than you can pay, you may have to let the mortgage lender foreclose, or declare bankruptcy.
Be Upfront With The Real Estate Agent

If you find selling you house for less than you owe on the mortgage is an option short of foreclosure or bankruptcy, you’ll want to find a real estate agent who understands your situation. Agents typically take a much lower commission on short sales, and it often takes much longer to actually close the sale once the seller accepts an offer. But many agents sympathize with financial problems brought on by unexpected circumstances, and may want to help.
Convincing Your Mortgage Lender

The buyer will need your help in negotiating a short sale approval with your mortgage lender.

Your bank will have to be convinced that you deserve to be approved for a short sale. You’ll need to tell your mortgage lender about your financial hardships, including layoffs, divorce or medical issues.

While this may seem obvious, now is not the time to rack up the purchase of luxury items, like fancy cars or jewelry. Your lender will see these debts on your credit report and become convinced you’re a loose spender who doesn’t deserve a break.

It may also be necessary to provide the lender, either directly or through the buyer or buyer’s agent, documentation of your financial hardship, such as paystubs, bank statements and so forth. While this may seem like an invasion of your privacy, try to think of it as the fastest way out of an otherwise overwhelming debt.

Short sales take much longer to close than more conventional sales, so plan accordingly. If it works, you’ve avoided bankruptcy and an ugly mark on your credit report. If it doesn’t work, you’ll know that you’ve done everything you could to avoid foreclosure and/or bankruptcy.
Questions For Your Attorney:

* Are there any tax advantages for selling my house below its worth?
* How much lower than its value should I sell my home before I keep it?

If you have are seeking an experienced short sale agent go to www.idshortsale.com and fill out your private complimentary short sale application form and see how you may qualify. Joshua Groesbeck 208-353-7131

Source:Bennett

Eagle Idaho Bank Owned Homes

36 Bank Owned homes are available in Eagle, Idaho. These are homes that need to find owners and the banks are willing to practically give them away- The longer these Luxury Homes sit unoccupied the more the banks are willing to sell! There are also 110 Short Sale homes available in Eagle, Idaho, a buyer may need to have a little more patience to purchase one of these but isn’t patience a virtue. With interest rates still near a record low this could very well be the chance of a lifetime to get into a once unimaginable Luxury Home. One thing to keep in mind are of course the interest rates because the more they go up the less you may be able to afford.

A great place to search REO, Bank Owed Homes, Short sales and all other homes for sale is www.homeswithjosh.com or call Josh direct at 208-353-7131

Also if you are seeing this and your current home has become a financial distress and you need help with options please visit www.idshortsale.com here you will find a short video and a free confidential no obligations short sale application this will help us find the best solutions for you.

josh@homeswithjosh.com

Negative Equity Soars In Bosie Metro Area

In the Boise metro area, 34 percent of homes are now worth less than what is owed on the mortgage.

Homes in this category are referred to as “underwater” or “upside down” properties, and their ranks have been growing as home values have declined.

The Boise area’s performance has been worse than both the national average and the state average, according to national research firm First American CoreLogic. Nationally, 24 percent of all residential properties with mortgages were in negative equity at the end of the fourth quarter of 2009. In Idaho, 23 percent of residential mortgages (53,663 homes) were under water in that quarter.

“Negative equity is a significant drag on both the housing market and on economic growth. It is driving foreclosures and decreasing mobility for millions of homeowners,” said Mark Fleming, chief economist with First American CoreLogic. “Since we expect home prices to slightly increase during 2010, negative equity will remain the dominant issue in the housing and mortgage markets for some time to come.”

If you are having trouble making your house payment or want to know if your home is “underwater” please go to www.homeswithjosh.com or idshortsale.com

Source: IBR

2010 Year Of The Short Sale

Ada county had 77 short sale properties  fund and record in the month of February 2010. Prices ranging from $531,700 down to$53,000. Ada county includes the cities of – Boise, Garden City, Eagle, Meridian, Kuna and Star.  That is a 100% increase of short sale homes closed from the same month last year, are we seeing a trend? 2009 highest sold price was $700,000 and the lowest was $120,000.

Canyon county had 32 short sale properties fund and record in the month of February 2010. Prices ranging from $359,000 down to $42,000. Canyon county includes the cities of – Nampa, Caldwell, Kuna, Melba, and Middleton.  That is a %90 increase of short sale homes closed from the same month last year, I ask again are we seeing a trend? 2009 highest sold price was $417,500 and the lowest was $71,070 (not including a manufactured sale of $12,500)

So for comparison we have the month of February in 2009 and again the same month for 2010, closed short sales are up while prices have continued to go down. I do feel that values should start finding the floor while more and more short sales get completed. While loan modifications are still trying to make sense (will they write principle balance down to current market value?) or will 2010 be the year of the Short Sale! April 5th is the deadline for new short sale rules to be rolled out which should increase the success of short sales closed. Sum it up short sales sold are up and the prices are down- Great time to buy and also could be a great time to take a look at your home if it is underwater and you have trouble making payments- If your are wondering what your options are and would like assistance please don’t hesitate and call Joshua Groesbeck 208-353-7131 or visit http://www.homeswithjosh.com or http://idshortsale.com

Certified Distressed Property Specialist 208-353-7131

statistics are from the intermountain mls

Overwhelming Negative Home Equity

With more and more evidence of more and more borrowers walking away from their mortgage commitments due to overwhelming negative equity, I got to thinking: What exactly is the monetary tipping point for a homeowner, someone occupying the home, hanging pictures on the walls, perhaps raising their kids in the second and third bedrooms, going to the neighborhood block parties…what exactly is the negative equity number that makes them say, “We’re outta here.”

Negative $70,000.

At least according to First American Core Logic. FACL put out its quarterly negative equity report today, showing that the number of “underwater” loans is rising, from 10.7 million in Q3 to 11.3 million in Q4 or 24 percent of all borrowers from 23 percent.

What interested me was a paragraph lower down in the report:

“The rise in negative equity is closely tied to increases in pre-foreclosure activity and is a major factor in changing homeowner default behavior. Once negative equity exceeds 25 percent, or the mortgage balance is $70,000 higher than the current property values, owners begin to default with the same propensity as investors.”

This behavior is apparently measured by the actual data, that is, the default rates of investors vs.. owners and comparing that to loan-to-value ratios.

Source: Diana Olick

This is a measuring stick of how most home owners view their property. Take into consideration that there still are many people that aren’t quite 25% negative equity but do have loss of income and not enough equity to still sell their home outright that may still qualify for short sale. For more information go to http://idshortsale.com also more information at www.homeswithjosh.com or simply call Joshua Groesbeck at 208-353-7131

Idaho Short Sale

An Idaho Real Estate Short Sale of a property, in it’s simplest form, is the process of selling your property for less than what is owed to the lender, with the lenders approval. If you are looking for realtors that do short sales than you have come to the right place, we do Idaho Real Estate Short Sales.

This process is used generally to prevent Idaho Foreclosure, and a home owner can qualify for a Idaho Short Sale if they have had financial hardship and their property is worth less than what is owed to the lender.

Many home owners purchased their homes with adjustable rate mortgage, interest only and even negative amortization loans. These loans don’t provide any payoff of the principle and payments can fluctuate and/or increase over time.

Other home owners have lost a job, had a death in the family or other unforeseen situations that have devastating affects on their financial situation. With their financial situation worsening and home values continuing to decline many people are seeking an Idaho Short Sale as a viable exit strategy.

To see if you qualify go to http://idshortsale.com/

Options When Facing Foreclosure

1. Do Nothing – If a homeowner does nothing, they most likely will lose their home at foreclosure auction.  Loan applications generally ask if the applicant has ever been foreclosed upon.  Credit reports also disclose this damaging information. Not the best option.

2. Payoff/Refinance – Completely paying off the entire loan amount plus any default amount and fees.  Usually this is accomplished through a refinance of the debt.  New debt is at a normally higher interest rate and there may be a prepayment penalty because of the recent default.  With this option, there should be equity in the home.

3. Reinstatement – Paying the entire default amount plus interest, attorney fees, late fees, taxes, missed payments and fees.

4. Loan Modification – Utilizing the existing mortgage company to refinance the debt or extend the terms of the loan.  This may allow the homeowner to catch up at a more affordable level.  To qualify, you must prove to the lender you have fixed the problem that caused the late payment.

5. Forbearance – Lender may be able to arrange a repayment plan based on the homeowner’s financial situation.  The lender may even be able to provide a temporary payment reduction or suspension of payments.  Information will be required from the lender to show that you are able to meet the new payment plan requirements.

6. Partial Claim – A loan from the lender for a 2^nd loan to include back payments, costs and fees.

7. Deed in Lieu of Foreclosure – Give the property back to the bank instead of the bank foreclosing.  Banks generally require the home be well maintained, all mortgage payment and taxes must be current.  Most loan applications ask if this has ever happened.

8. Bankruptcy – This option can liquidate debt and/or allow more time.  I can refer you to a qualified bankruptcy attorney.

–Chapter 7 (Liquidation) To completely settle personal debt.

–Chapter 13 (Wage Earner Plan) Payments are made toward a plan to pay off debts in 3-5 years.

–Chapter 11 (Business Reorganization) A business debt solution.

9. Sale – If the property has equity (money left over after all loans and monetary encumbrances are paid). The homeowner may sell the home without lender approval through a conventional home sale.  In this case, the homeowner will get cash from the sale.  On the other hand, a Short Sale, also known as a pre-foreclosure sale, can be negotiated with your lender by your Real Estate Professional if what is owed is MORE than the property’s value.

Hope this information is helpful and if you have any questions please feel free to call Josh Groesbeck 208-353-7131 or josh@homeswithjosh.com and don’t let your home go to foreclosure.

Selling Idaho’s Real Estate Today

Selling Idaho’s real estate today can be rough especially if you have a home to sell here in Idaho. Good news is for all those people that say “I sure would like to sell my Idaho home,” is that even in a down turned economy Idaho homes are still being sold. This is really good news for those that want and have the ability to get it done. Problem one is taking the approach of just listing your home with the “let’s see what happens” attitude. I like to get my clients in the mind set that we aren’t just going to see what happens, we are going to make it happen. Your in luck because you are reading this and I will give you a couple simple rules to get your Idaho home sold.

First your home will not sell itself, this is an old myth that has little to do with it and if you go that route you may just get burned. My advice is for you to treat this as a small part-time job with small tasks and I will do all the hard work. Keep your home clean and ready to show and do your very best to make it available at all times, buyers want to buy your Idaho home. Keep the curb appeal looking good as that sometimes can make or break you getting an offer. Take ownership of your home and be proud that you are doing these small things and I will help create and finish the big picture. Sold! www.homeswithjosh.com

Second and probably the most important is to trust your real estate professional. For example, I market my Idaho homes in all facets of the media- Mls, realtor.com, print ads, call capture numbers, social media, my website which is part of the most important tool today.  I make sure that your Idaho home is all over the internet. 87% of home buyers start on the internet so it needs to be there and easy to find.

It can be this simple, if you need or would like to sell your home follow these very simple rules and believe the best is yet to come, a sold sign in your Idaho home.

Always feel free to call Joshua Groesbeck 208-353-7131 or visit www.homeswithjosh.com to find how I can help you succeed in today’s market.

Idaho Short Sale Application

Your confidential short sale application is now available by clicking here

http://www.homeswithjosh.com/home/short-sale-application/

Idaho Short Sale Tips

#3   Put Together A Well Organized Short Sale Package

Your Idaho real estate agent should provide you with a list of the lender’s requirments and  At a minimum, the lender will want to see:

* Your hardship letter;
* A balance sheet listing your monthly income and expenses, or a profit and loss statement;
* Statements from your checking, savings and other asset accounts;
* A net sheet from your Idaho real estate agent listing all of the closing costs that must be paid for your short sale to close;
* A current Market Analysis (CMA) or a Broker Price Opinion (BPO)
* Supporting documentation, including two months’ worth of paycheck stubs and all of your household bills, including HOA dues;
* Your last two federal income tax returns.
* The offer to purchase your home, including the buyer’s preapproval letter, once it is received.

Best to turn in package that is complete otherwise you could end up on the cutting room floor. Many bank staffers are over worked and will only look for well put together short sale packages. Trust me they want to work easier not harder, they do not want to come back for left out items that will only cause your short sale to become buried a under huge stack of growing short sale files. Get on top first this is very important.

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