I just added a new feature on my site with a quick list of bank owned (foreclosed) properties in the Boise, Eagle and Meridian areas. Also included are foreclosure properties in Nampa and Caldwell. This is the first comprehensive list I know of that is updated about every 15 min. for all bank owned homes in the Boise, Eagle and Meridian areas, as properties come on or off the market. View the properties now.
Instead of just a simple list of homes I have provided a map overlay with each property detailed on the map. Just hover your mouse over the house icon and you will see the front picture and property pop-up -or- you can simply scroll the list to (on the right side of the map) and sort by price, location, etc (see the bottom right hand corner of the map).
Negotiating with banks rquires its own set of strategies and varies with each lender. Give me a call and we can schedule a time to review these strategies that will ensure a successful transaction and a great value for you.
Here is what typically happens on a typical mortgage. You buy a home and receive a mortgage from ABC Mortgage Company or even your local bank. ABC Mortgage Co. funds your loan and you move into your new home. Part of your loan is then sold to a very large investor (FannieMae, FreddiMac, etc.). Only the note is sold to them the servicing, or who you make your payments to is sold to another company (WellsFargo, Countywide, etc.). Local banks such as Syringa Bank, Mountain West Bank and Key Bank all sell their loans. This is a critical and important function as without their ability to sell the loans they would be limited by the amount of deposits on how much they could lend. Plus because of their local presence they have on the ground people who know the in's and out’s of out local marketplace.
Here is what typically happens on a typical mortgage.
Part of your loan is then sold to a very large investor (FannieMae, FreddiMac, etc.). Only the note is sold to them the servicing, or who you make your payments to is sold to another company (WellsFargo, Countywide, etc.). Local banks such as Syringa Bank, Mountain West Bank and Key Bank all sell their loans. This is a critical and important function as without their ability to sell the loans they would be limited by the amount of deposits on how much they could lend. Plus because of their local presence they have on the ground people who know the in's and out’s of out local marketplace.
This data is for Short Sales from 7/1/08 – 10/31/08 Total Sales in MLS 1,919 Short / Closed 113 5.9% Short / Pending (7/1/08+) 88 17.7% The Short/Pending illustrate the difficulty in closing many short sales. They have a 50% fall out ratio. This is due to two primary factors that I will address in the next post.
This data is for Short Sales from 7/1/08 – 10/31/08
The Short/Pending illustrate the difficulty in closing many short sales. They have a 50% fall out ratio. This is due to two primary factors that I will address in the next post.
Here is the exact text out of the bail out bill. Pay attention to the word“may” and place extra emphasis on it. Sec 109 – Foreclosure Mitigation Efforts Secretary shall implement a plan that seeks to maximize assistance for homeowners and use the authority of the Secretary to encourage the servicers of the underlying mortgages, considering net present value to the taxpayer, to take advantage of the HOPE for Homeowners Program under section 257 of the National Housing Act or other available programs to minimize foreclosures. In addition, the Secretary may use loan guarantees and credit enhancements to facilitate loan modifications to prevent avoidable foreclosures. My interpretation of this secition of the bill is that it encourages lenders to work with homeowners to prevent foreclosure by encouraging loan modifications. My experience has been that if you had a major loss in income and could not make your mortgage payments and now you have regained a large portion of your income and can reasonably make your payments, most lenders will work with you to modify your loan. This typically means they will add the past loan payments onto the balance of your loan thus taking you out of default. If you have an adjustable rate loan chances are good that they will fix your loan rate for a period of time. I am hearing for 5 years. Do not expect them to waive any part of your loan. I ahve not seen that in this area. If you have by all means let me know. If your income does not allow you to make a large portion of your mortgage payment then the next best option is to attempt a short. That would be selling for les than what you owe on the property (assuming of course the market value supports this).
Here is the exact text out of the bail out bill. Pay attention to the word“may” and place extra emphasis on it.
Sec 109 – Foreclosure Mitigation Efforts
Secretary shall implement a plan that seeks to maximize assistance for homeowners and use the authority of the Secretary to encourage the servicers of the underlying mortgages, considering net present value to the taxpayer, to take advantage of the HOPE for Homeowners Program under section 257 of the National Housing Act or other available programs to minimize foreclosures. In addition, the Secretary may use loan guarantees and credit enhancements to facilitate loan modifications to prevent avoidable foreclosures.
My interpretation of this secition of the bill is that it encourages lenders to work with homeowners to prevent foreclosure by encouraging loan modifications. My experience has been that if you had a major loss in income and could not make your mortgage payments and now you have regained a large portion of your income and can reasonably make your payments, most lenders will work with you to modify your loan. This typically means they will add the past loan payments onto the balance of your loan thus taking you out of default. If you have an adjustable rate loan chances are good that they will fix your loan rate for a period of time. I am hearing for 5 years. Do not expect them to waive any part of your loan. I ahve not seen that in this area. If you have by all means let me know. If your income does not allow you to make a large portion of your mortgage payment then the next best option is to attempt a short. That would be selling for les than what you owe on the property (assuming of course the market value supports this).
Sec 109 – Reasonable Loan Modifications Upon any request arising under existing investment contracts, the Secretary shall consent, where appropriate, and considering net present value to the taxpayer, to reasonable requests for loss mitigation measures, including term extensions, rate reductions, principal write downs, increases in the proportion of loans within a trust or other structure allowed to be modified, or removal of other limitation on modifications. The key word here is “reasonable”. That does not mean what it would take to get a new loan but a payment that you can really afford to make. This would include eating Cup of Noodles and bean burrito's for every meal if needed. Lenders in the Boise area marketplace will typically drop an adjustable rate mortgage and fix the term to about 5% for 5 years. This is what Countrywide Loan Workout department told me. Other lenders may differ.
Sec 109 – Reasonable Loan Modifications
Upon any request arising under existing investment contracts, the Secretary shall consent, where appropriate, and considering net present value to the taxpayer, to reasonable requests for loss mitigation measures, including term extensions, rate reductions, principal write downs, increases in the proportion of loans within a trust or other structure allowed to be modified, or removal of other limitation on modifications.
The key word here is “reasonable”. That does not mean what it would take to get a new loan but a payment that you can really afford to make. This would include eating Cup of Noodles and bean burrito's for every meal if needed. Lenders in the Boise area marketplace will typically drop an adjustable rate mortgage and fix the term to about 5% for 5 years. This is what Countrywide Loan Workout department told me. Other lenders may differ.