Short Sales For Real People Not Just Big Business

I have been saying this for awhile now, “If new bank is built for 200 million and it is now worth 100 million it becomes a bad asset and they will walk away and call it a good business decision, and yes they actually have the money to pay for it.”  This has been going on for years and now that home owners are getting beat up by there upside down mortgage or loss of employment and income they still struggle to hang on.  Sometimes starting over just makes sense emotionally and financially, if big business can strategically do this than why can’t you? Free consultation if keeping your home is no longer an option- Josh Groesbeck 208-353-7131 or josh@homeswithjosh.com

www.homeswithjosh.com and www.idshortsale.com

More and more commercial real-estate companies are doing what many indebted homeowners would like to do: Walk away from mortgages on properties that are now worth a lot less than they paid for them.

Today’s Wall Street Journal highlights three major developers - Macerich,Vornado Realty Trust and Simon Property Group - that have recently decided to default on mortgages.

When companies do this, no one bats an eye–it’s just “smart business.”

When ordinary homeowners think about doing it, meanwhile, the mortgage industry and government begin moaning that a mortgage is more than a business contract. It’s a social contract, in which homeowners have a “moral obligation” to pay.

That’s bunk. An individual mortgage is no different than a corporate mortgage. If corporations are allowed to walk away from mortgage obligations without feeling shame and guilt, then individuals should be able to do so, too.

The contract homeowners sign when they take out a mortgage spells out exactly what happens if the homeowner stops making payments on the loan.  The lender has the right to foreclose on the house, taking the homeowner’s downpayment with it.  In addition, the borrower’s credit rating will usually get destroyed, and, in some states, the lender can come after his or her other assets to recoup the capital the lender has lost.

Those are big penalties.  They provide a major incentive for the borrower to continue making his or payments.  And that’s why the lender, a corporation, put them in the contract.

Importantly, the lender voluntarily entered into the contract–and it did so because it thought doing so was a smart business decision. That it actually turned out to be a lousy business decision is not the homeowner’s fault. It’s the lender’s fault. And the borrower, who is already feeling plenty of pain his or herself, should not have to bear the burden of guilt and shame on top of everything else.

www.homeswithjosh.com

Bank of America HPO Short Sale Rules

This is an outline for Bank Of America new HPO (high performance) short sale program. If you are have a B of A loan and have been turned down for or loan modification has not worked please don’t waste anytime and call Josh 208-353-7131 or josh@homeswithjosh.com for your free confidential housing consultation. Look at the new rules below as they are pretty clear. 100% Trained in Short Sales and getting them closed. First Response Team

* Every short sale seller and agent will be assigned a personal advocate who will shepherd the short sale through, using the new, simple process.  Think of this as your own ‘short sale personal representative’.

* No pre-qualifying, no hardship required.  Being upside down in the house IS the hardship.

* No documentation.

* No bank statements.

* No tax returns.

* No financial worksheets.

* No deficiency judgement.

* No financial contribution from the seller of any kind will be requested.

* Only requirements?  -A listing contract -A purchase contract -An appraisal, though we’ve been told the appraisal will not have an adverse bearing on the final acceptance.

* 2 WEEK approvals.

NACA Loan Modification Help

If you are having trouble getting your loan modified here in Idaho please watch this video it may be of some assistance. Josh Groesbeck is a loan modification and short sale specialist here in Idaho. If you need help and your loan modification is not working please call for other options.

Josh Groesbeck

208-353-7131 or josh@homeswithjosh.com

www.homeswithjosh.com and www.idshortsale.com

Foreclosures Down And Short Sales Up

Here is an insightful video from  CNBC  and what to expect from the housing market in the months ahead. If you have questions or would like assistance with your home please don’t hesitate to call or email, Josh.

Exiting Home Sales Down

Joshua Groesbeck

208-353-7131 or josh@homeswithjosh.com

www.homeswithjosh.com or www.idshortsale.com

Home Owners Leaving Government Hamp Program

Facts for the Idaho homeowners who are working towards a loan modification. Best case scenario is getting your payment lowered to no more than 31% of your gross income. IF your loan modification is not getting worked out do the next best thing and call Josh Groesbeck and you can stay in your home until it is sold while charging you nothing. Specially trained in the art of a Short Sale I can help you qualify for money back from the bank to you for your relocation. With the economic hardships and homes that are entirely upside down (worth less than is owed) it’s no surprise that well over 50% of american homeowners are choosing to Short Sale their homes and start fresh. More great information at WWW.HOMESWITHJOSH.COM or WWW.IDSHORTSALE.COM

Joshua Groesbeck      208-353-7131  or josh@homeswithjosh.com

About 91,000 borrowers dropped out of the program in June, putting the total number of dropouts at 530,000.

At the same time, about 49,000 borrowers received a permanent modification in June, bringing the number of total active permanent modifications to 389,000.

That means more than 40 percent of the roughly 1.3 million borrowers who have started in the program since its March 2009 inception have since dropped out, while just over 30 percent have received permanent new terms for their loan.

Idaho Housing Market Recovery

Here are 6 reasons why the Idaho’s housing market has yet to recover from it’s epic fall… Idaho’s housing market will recover and with interest rates extremely low (lowest ever) this is a great time to buy and a poor time to sell. When the market recovers we can expect annual appreciation to be slow at best- Over all Idaho real estate can and always will be a super investment.  Buy a home and enjoy the heck out of it and in time you will have paid down your mortgage leaving you the great escape- get your money and retire living the good life.

Joshua Groesbeck  208-353-7131

josh@homeswithjosh.com or www.homeswithjosh.com and www.idshortsale.com

1. Labor market: The labor market holds the key to a recovery in housing. “We need more job growth in this country for a housing recovery to take hold,” Dwyer says. That’s because a steady income stream is the first step to home ownership. And with the national unemployment rate sitting at an uncomfortably high 9.5 percent, a great deal of potential buyers are either out of work or worried about losing their jobs. And until jobs and confidence return, the market won’t have enough demand to support a sustainable recovery, says Mike Larson of Weiss Research. “This is truly a jobless recovery to end all jobless recoveries,” Larson says. “And that’s why I think the housing market is still struggling.”

2. Household formation: The weak labor market is undercutting a housing recovery in another way as well. As jobs become scarce, unemployed workers tend to move in with friends or family members, says Patrick Newport, a US economist for IHS Global Insight. This development works to constrict the creation of new households, which typically serve as a key driver of real estate demand. Only 398,000 new households were formed between March of 2008 and March of 2009, compared to roughly 1.2 million in a normal year, according to Newport. “That was the second smallest increase since 1947,” he says. Although figures for the most recent year have not yet been released, Newport expects they will show another period of sluggish household formation. “That is the key reason why the housing market is still down…and the reason that household formation is down is because the economy is so weak,” Newport says. “Job growth is what will get people moving back out on their own.” Newport expects the economy to add jobs going forward, but only at a modest pace. He forecasts roughly 800,000 additional jobs added this year, 2.7 million in 2011, and 3.5 million in 2012.

3. Foreclosures: Despite a sharp pullback in new home construction, the housing market remains significantly oversupplied. The market had an 8.3-month supply of unsold existing homes in May; that’s above the 6-month supply associated with a balanced market. At the same time, a mountain of distressed properties will ensure that additional inventory continues hitting the market in the form of foreclosures. Foreclosure filings were reported on nearly 1.7 million homes in the first six months of the year, an increase of eight percent over the same period a year earlier, according to RealtyTrac. “The midyear numbers put us on pace to exceed 3 million properties with foreclosure filings by the end of the year, and more than 1 million bank repossessions,” James Saccacio, the chief executive officer of RealtyTrac, said in a statement. And with large numbers of Americans still struggling to pay their mortgage bills, even more foreclosures are on the way. Ten percent of all mortgage loans were delinquent at the end of the first quarter, according to the Mortgage BankersAssociation. It could take two years or longer for the market to work through this excess inventory, experts say. And it will be difficult for home prices to rise appreciably until balance is restored.

4. Tight credit: Rates on 30-year fixed mortgages fell to 4.57 percent for the week ending July 15–that’s the lowest level since the 1950s. Not everyone, however, will be able to take advantage of these attractive terms. That’s because banks–who incurred huge losses on bad loans made during the housing boom–have increased their lending standards significantly. “If you don’t have good credit it’s going to be difficult [to get a mortgage],” says John Bancroft, the executive editor of Inside Mortgage Finance. “If you don’t have money for a down payment and you are in a market that is still considered deteriorating, it’s going to be difficult [to get a mortgage].” To get the best rates, today’s borrowers will need a FICO score of 720 or higher, a down payment of around 10 percent, and fully documented income and assets, says Keith Gumbinger of HSH.com. Buyers that can’t meet these requirements could still be eligible for government-backed loans through the Federal Housing Administration. Attractive rates are also available on larger, so-called Jumbo home loans, but the credit bar will be even higher. Today’s Jumbo borrowers generally need a FICO score of at least 740 and should expect to put down anywhere from 20 to 40 percent, Gumbinger says.

5. Falling home prices: With home prices having fallen so dramatically from their 2006 peaks, the real estate market’s weakness has become an obstacle to recovery in and of itself. Although home prices have stabilized recently, they are expected to decline in coming months. Meanwhile, the years-long period of home price deflation has blinded many Americans to the potential benefits of buying a home, Gumbinger says. “The message which has been repeated over and over again in anything from 40-point headlines on down is: ‘People are getting screwed by homeownership.’” As a result, many would-be home buyers are still scared off by concerns that their investment may lose value after they’ve gone to closing. “No one wants to catch the hot falling potato,” Gumbinger says.

6. Selling your other home: While today’s housing market has created some serious deals, not all buyers are in position to take advantage of them. For example, any current homeowner interested changing addresses will first need to sell their home. And with roughly one in four homeowners in negative equity–meaning they owe more on the mortgage than their property is worth–that can be tricky. Homeowners with negative equity may take a loss on their investment if they sell their property. “That’s something that [homeowners] don’t do readily,” says Brad Hunter, the chief economist at Metrostudy. As a result, the 11 million homeowners who have negative equity are less likely help advance a real estate recovery.

Outlook: When considering the trajectory of the real estate recovery, it’s important to bear in mind the magnitude of the boom and bust, Larson says. “We had the biggest housing bubble the country has ever seen,” Larson says. “The reality is that when you get these types of situations that carry so far to the upside, the recovery period takes quite some time.” Newport expects median existing home prices to fall another 8 percent or so before bottoming out in the first quarter of next year. From there, he expects prices to begin a slow and fitful climb.

By Luke Mullins U.S. News and World Reports

Meridian Idaho Approved Short Sale

820 Loggers Pass in the wonderful Glacier Springs community is another Idaho short sale that we have been approved to sell. Neighborhood is located in prime meridian, Idaho location that provides easy access to interstate 84. Meridian, Idaho is right in the heart of the treasure valley, quickly becoming one Idaho’s most popular places to settle down. Live the country life and be within minutes of downtown what more could you ask for?

If you are currently looking to buy or sell real estate please don’t hesitate to call or email for proven customer service and the ability to get the job done. Also if you are one of the many families struggling to keep up with your house payment or are already in foreclosure we can help. Full-time Realtors with staff to handle all cases. Joshua Groesbeck 208-353-7131 or josh@homeswithjosh.com or www.homeswithjosh.com and www.idshortsale.com

LOADED WITH AMENITIES! Gracefully designed floor plan containing a plethora of granite, tile & hardwood throughout. Enormous bonus room, jack and jill bathroom, 9’ ceilings, tons of storage & a luxurious kitchen overlooking the main level living area w/fireplace. Stunning master suite highlighted with gas fireplace, his and her closets, dual vanities, jetted tub & a tiled walk-in shower w/3 heads. Oversized covered back patio (plumbed for gas), professional landscaping, oversized garage & 2×6 construction. Mls#98434697

Source: Intermountain Mulitple Listing Service and Trust Realty

Mortgage Defaults Idaho

Although defaults are showing as a decline in three straight months I expect to see them go up again, there is lots of shadow inventory still out there. As explained in the article below from Idaho Business Review there is the now and there is what will be coming in the next few months ( more delinquent loans). If you or some you know is having experiencing a hardship and worried about there mortgage we specialize  for the homes in these Idaho cities- Boise,Eagle,Meridian,Nampa,Star,Middleton,Caldwell or Kuna-

Joshua Groesbeck 208-353-7131  or josh@homeswithjosh.com or www.homeswithjosh.com and www.idshortsale.com

Mortgage defaults in the Treasure Valley have declined for the third straight month. Idaho Data Providers is reporting that 577 defaults were filed in June, down from a high of 949 in March.

In their June market report, Idaho Data Providers stated that there would be some months of decline on default filings due to the two government programs that have been implemented to help homeowners avoid foreclosure. Both the Home Affordable Modification Program and the Home Affordable Foreclosure Alternatives Program have slowed down the filings, as these programs must evaluate non performing loans for short sale eligibility.

“There has been a huge number of “shadow inventory” created. It is taking servicers longer to complete the filings of mortgage defaults because of the high number of non performing loans that need to be evaluated and processed,” said Idaho Data Providers.com President Charlie Nate.

Nationally the average number of days delinquent for more than 90 has grown from 189 days in January 2009 to 282 days in May 2010.

Locally, seven percent of all loans in Idaho are 30+ days delinquent and 2.5 percent of loans are in the foreclosure stage, for a total of 9.5 percent of all loans that are non current.

Source: IBR

Idaho Short Sale Help

Strategic Walk Away!!  Is your home worth less than what is owed? Making less money? Divorce? Hospital Bills?   Hardship is everywhere in today’s economy but think towards the future–  If you are in trouble of losing your home to foreclosure or have already tried to modify your loan with no success and are now in need of help– Call Josh 208-353-7131 or josh@homeswithjosh.com We can solve your problem today and let you start preparing for the future, the next home you buy will be at the right price not some super inflated unrealistic price. You have heard it all before and it will always be true Real Estate is the best investment if you buy right!

www.idshortsale.com or www.homeswithjosh.com

Read this below and it will explain what Fannie Mae is doing to crack down on the Walk Away

If you choose to walk away  from your mortgage rather than work something out with your servicer, Fannie Mae will block you from getting another mortgage for seven years from the date of the final foreclosure on the house. That’s according to new rules that go into effect immediately.

But, if you do work with your servicer to come to some agreement — whether a loan modification, deed-in-lieu of foreclosure, pre-foreclosure sale or short sale — your wait time to buy a new house will be much shorter. In fact to encourage people to work with their lenders rather than just walking away, Fannie Mae is shortening the time you’ll be eligible for another Fannie Mae mortgage.

“Walking away from a mortgage is bad for borrowers and bad for communities and our approach is meant to deter the disturbing trend toward strategic defaulting,” Terence Edwards, Fannie Mae’s executive vice president for credit portfolio management, said in making the announcement.

“On the flip side, borrowers facing hardship who make a good faith effort to resolve their situation with their servicer, will preserve the option to be considered for a future Fannie Mae loan in a shorter period of time.”

Here’s the breakdown for eligibility depending on how you got out of your last mortgage:

* Deed-in-Lieu of Foreclosure> — reduced from four years to two years if you can put down 20 percent on your house, four years if you can only put down 10 percent.
* Preforeclosure Sale — remains at two years if you can put down 20 percent, four years if you can only put down 10%.
* Short Sale — will be the same as pre-foreclosure sale. Currently there are no set rules for short sale.
* Strategic Default (Walk Away) — seven years.

All these waiting periods start on the day after the completion of a preforeclosure event or foreclosure event. If you can prove there were extenuating circumstances, such as the loss of a job, the waiting period for deed-in-lieu, a preforeclosure sale or short sale will be reduced to two years with a 10 percent down.

In all cases eligibility will be dependent on other factors, such as credit history and credit score. The eligibility matrix is complex and varies greatly depending on your economic situation. Take a close look at the matrix to figure out what you need to put down based on your credit score.

Fannie Mae is taking action now because statistics show that more and more people are willing to walk away from their home because there doesn’t appear to be any negative effect. In a study from the University of Chicago the researchers found that 31 percent of foreclosures were strategic defaults. The researchers defined strategic defaulters as “homeowners willing to default when the value of a mortgage exceeds the value of their house, even if they can afford to pay their mortgage.”

In addition to increasing the wait time until one can buy another home, Fannie Mae also will encourage servicers in states that permit them to go after a short fall, to begin chasing strategic defaulters for the money. This shortfall happens when the bank sells the foreclosed home for less than the mortgage. The bank can then go to court in many states and ask for a deficiency judgment. Not all states allow lenders to chase borrowers for the money. If you are planning to walk away from your home that is underwater, be sure to talk with an attorney to find out whether your lender can chase you for any shortfall.

You can avoid a deficiency judgment if you come to some agreement with your lender, but be sure you have a good attorney checking the agreement to be sure the lender can’t chase you. In most walk-away cases you can protect yourself from a deficiency judgment with a deed-in-lieu of foreclosure or a preforeclosure or short sale.

Clearly the banks are taking note that if they don’t act aggressively to collect any shortfall more people will strategically default. Now the game becomes much more serious, especially if you live in a state that allows the lender to go after you for any shortfall.

Source: Lita Epstein

1st Time Home Buyer Special

IMPECCABLY MAINTAINED & ready for immediate occupancy in Boise,Idaho!  Newer subdivisions in SW Boise offers open living area with vaulted ceilings, recessed lighting, large guest bedrooms, an abundance of closet space & neutral paint colors throughout. The kitchen is open & bright containing a plethora of storage. Oversized master suite situated on main level & upstairs bonus/media room with closet could easily be used as a 5th bedroom. Stamped concrete and curbing, auto sprinklers, oversized garage and a North facing back patio—perfect for Summer BBQ’s!    Search Mls#98439454  at www.homeswithjosh.com

Experienced short sale team that you can trust! Short Sales that get Sold!!

Joshua Groesbeck

208-353-7131 or josh@homeswithjosh.com

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