Tag Archives: boise real estate

Buying Bank Owned Properties In Boise

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Why should more investors consider Boise bank owned property?

ar120765959234809 Buying Bank Owned Properties In Boise

Far too many homeowners have lost their homes, and even more are in the process. This difficult state of affairs for so many local homeowners seems like it is the worst case scenario in so many people’s minds, but there is a silver lining to this dark cloud.

The quick skinny on Boise bank owned homes

Many buyers are looking at Boise bank owned homes to find what they are looking for and are getting some great deals in doing so. The dynamic behind this is that when a bank forecloses on a home, the amount of the primary loan is erased and the home is sold for as close to market value as is possible, or for an agreed up on liquidated value. This increases opportunity for many buyers to purchase at decent discounts and get properties that are bank owned, and wouldn’t otherwise be on the market.

What if the bank owned properties in Boise are in a state of disrepair?

Many people are not aware of this, but getting a special kind of loan that allows you to do repairs on the bank owned properties and rolls those costs into the loan is once again available. It is called a “203b” loan, or a rehabilitation loan, and many homeowners are finding them necessary to purchase Boise real estate right now. When you understand that many of the bank owned homes are left vacant for several months while in the process of being taken back from the initial homeowner, processed through the banks REO department and then finally assigned to an REO agent for sale or liquidation, you can understand why this is the case.

Using a rehab loan to bring your recent purchases in your real estate portfolio is not the only way to bring the home up to par, but a great way to use the banks money to do it so you can spend your cash, 401k or Roth IRA money somewhere else.

Is buying Boise bank owned homes a good investment strategy?

When it comes to buying in today’s market, there are essentially 3 types of sales. There are conventional sales in which the homeowner is not underwater and can sell the home without coming out of pocket or shorting the bank. There are short sales which can take an extreme amount of time and may not even yield a purchase for sure. And, there are bank owned, or REO properties, which have the least amount of red tape of the latter two.

When you compare buying short sales to the other two, you have a poor comparison just because a short sale is the worst case scenario for investment or buying real estate in general. Given that there are so few homes that fall into the conventional sale category, you are basically left with buying bank owned homes in Boise. When you consider that, at regular intervals, bank owned homes will actually be cheaper than conventional sales, you have to include it as a great procurement strategy.

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How Does The Availability Of PMI Affect Boise Real Estate?

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mortgage1 231x300 How Does The Availability Of PMI Affect Boise Real Estate?

Many homeowners are not fully aware of exactly what PMI is, let alone how it can affect a real estate market. The contraction PMI stands for Primary Mortgage Insurance and it actually ensures the bank, not you, in case you do not pay for your home loan. Yes, you pay for it, and it does nothing for you personally besides make it possible for the bank to actually loan you the money to buy your home.

Have banks developed resolution about Boise real estate?

Banks are somewhat smart in that they will not fund Boise real estate loans which may be risky, so to buffer them from loss, they require a homeowner to purchase PMI as part of the loan contract. Most people are not quite aware that if you get an 80/20 loan, or another ratio, then you can avoid having PMI altogether because the smaller note is the one taking the biggest risk of loss.

When the Boise real estate market was listed as a depreciating market, acquiring PMI was extremely difficult because insurance companies were not so willing to insure real estate in a market with values that were headed downward. The reason for this is that homeowners tend to walk away from their homes at much higher rates when the values are underwater. With this tendency in mind, insurance companies either simply remove any policy for homes in that market altogether, or they price them so expensively that nobody will be able to afford them, which makes granting the policies much more profitable anyway.

PMI is vital to Boise real estate

If banks cannot get insurance to protect them if you do not pay your mortgage, why would they loan any money? This is where the federal governments first time home buyer tax credit, that just expired, comes into the equation.

The first time home buyer tax credit actually did stimulate the housing market because it artificially dropped values. The government decided that instead of waiting until prices adjusted naturally to where the market wanted them to be, they would make it by issuing buyers a tax credit. This artificial aid to the market caused such sensationalism that many raced out to wrap up their home and cash in on the credit.

This may sound great, but as physics teaches us, for every action there is an equal and opposite reaction, this increase in action will have to be countered by a reduction in activity. This may lead to a decrease in prices causing an increase in PMI all over again and putting us right back in the same position we were in before.

I know this may seem like a grim report given all of the talk about an economic recovery, but real estate is still an excellent investment, given you acquire it correctly. Buying more house than you can afford and not being able to account for future changes is never a great strategy, and may end up costing you your credit score and much more, if you do not plan your path well.

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Boise Real Estate Sales Jump 6.8%, But Is That Temporary?

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Does the report that Boise real estate sales jumped in March mean that the market is improving quickly? 

Anyone who stays aware of the Boise real estate market and hopes for it’s improvement has heard about the jump in sales in March of 6.8%. This should not be a surprise to anyone because of several factors that are pushed to the back page in an attempt to report an optimistic slant.

With the First Time Home Buyer Tax Credit or FTHBTC looking like it is not going to be extended by the federal government, many homebuyers have been pushed to rush out and contract a home before the deadline. The rules on the FTHBTC say that a buyer must have the home they are planning on claiming in the credit in contract before the 30th of April, and the closing finalized before the end of June. With these deadlines in place the latent rush in the market is predictable.

The real question to me is what is the solution for July? How will the real estate market behave once homeowners do not have the FTHBTC to “help” them purchase their home, or at least encourage them. Many industry insiders cite some optimism for the Boise real estate market, and the national one as well, in that rates and financing costs are presently low. But, what will happen when those rates and costs go back up? The Federal Reserve, which sets the interest rates for banks, has already hinted at raising the rates this summer to control inflation. If rates rise and the tax credit disappears, what, other than price, will stimulate buyers to purchase homes?

Many Boise real estate agents are sanguine about the future of the housing market in the short term, with the passing of two important market factors. When you add in that unemployment is one of the most chilling factors in the real estate market today, you can see why.

With many homeowners simply trying to hang on to their homes, unemployment distorts the rates of defaults if they cannot. When the employment numbers were lower more homeowners could afford to keep their homes, even if they owed more than the homes were worth. As long as they could make their payments, and couldn’t really rent for what they were a dramatic difference then what they were making their payments for, most were perfectly content to keep paying. Once rent rates dropped a bit and home values declined as well, the numbers came out in favor of paying reduced rent, and releasing the albatross around their neck that home has become.

The recovery of the Boise real estate market is really dependent one on very substantial factor; jobs. If area residents cannot find gainful employment, they simply cannot keep their homes, regardless of how many programs the federal government creates. Likewise, if they cannot pay for a mortgage payment and prove they have the income to do so, no bank on earth will loan them money to buy. A comprehensive solution to the jobs crisis has to be presented before any foreseeable resolution to the real estate crisis emerges.

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REO Homes Map In Hidden Springs, Boise, Idaho

ar116887581396048 REO Homes Map In Hidden Springs, Boise, Idaho

Are REO Homes In Hidden Springs Hurting Values?

Even though Hidden Springs is a fairly isolated community, it has still had it's share of REO properties that have pulled real estate values down. This may sound like a bad thing to many Boise real estate observers, but it is really a great time to pick up a property that otherwise has nothing wrong with it. Not to mention, neighbors of the REO homes in Hidden Springs do not want to see them fall into delapidation or disrepair. 

Think of it this way, if your neighbor has his home go back to the back, and the listed it as an REO home in Hidden Springs, would you expect them to take care of the landscaping? You may, but they wouldn't do it. The banks do not seem to operate on the same principles as many other entities. The foreclosed homes in Hidden Springs, and many other nice subdivisions in Boise Idaho, are being absorbed into the market despite that though. 

 

 

If you are looking for REO home listings in Hidden Springs click on the map below!

REO Homes Map In Hidden Springs, Boise, Idaho

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Why hire a Boise buyer’s agent?

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flash img 03 Why hire a Boise buyers agent?

Many home buyers are concerned with the trends in the market. Is it going to go down? Will the recovery finally star to kick in? Nobody seems to have any solid answer, except Boise buyers agents. Too many times buyers and investors get sidled with agents who do not know what is going on in the market because they settle for the first real estate agent they speak with. Here is a simple guide, and answers to a few important questions,  to show you what to do when considering hiring a Boise buyers agent. 

What will a Boise buyers agent cost me?

Any real estate professional worth his or her salt, will actually make you more money than their commission  on your transaction. These are not just numbers I am pulling out of thin air, this is a statistical fact according to the NAR.  You will not be charged any out of pockets fees in a typical real estate transaction, because the listing agent has already negotiated a fee for a buyers agent payable by the seller. 

Why would I need a Boise buyers agent?

Purchasing real estate is a complicated process, as it should be. It should not be as easy as placing a bet in a casino in Las Vegas. Hopefully,  you will have put much time and planning into buying your home. Agents will be up to date on any changes in the closing procedures, financing industry that may be applicable as well as any change in law and statute that may have an impact on the process. 

What are some important questions to ask a Boise buyers agent?

1. Ask your agent to help you clarify your vision for your home purchase. They should be willing and able to help you decide what size of home you need, what fits your budget as well as any implications from those issues. 

2. Ask you agent if he or she is wiling to listen to what you want and need. They should be willing to listen to you in regard to the area you want to live in as well as any other important feature your home needs to have. If they show you homes above your price range or that don't match your criteria, they may not be representing your best interests at all.

3. Ask the agent if they can vow to represent you to the best of their abilities. This would include answering any questions you have on properties, dutifully fulfilling their legal representation responsibilities and acting in your best interests. 

4. Ask the agent if they are wiling to communicate with you on a level that you need to help you understand an information that you are given about the transaction. 

5. Ask your agent if you could be protect by completing a buyer representation agreement. Make sure to read it carefully and even have a lawyer check it out if you have any issues with it. An honest agent will not pull any tricks in the language, so you have a good way to gauge the ethics behind the agents behavior this way. 

This format of inquiry in interviewing a real estate agent allows you to assess their motives, personality all the while establishing a level of expectation from them that you have to come first in the transaction. This way you know that your interests will be represented and not just what will get them paid. 

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Boise Real Estate Experiencing Rush Of Permanently Modified Home

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loan modification Boise Real Estate Experiencing Rush Of Permanently Modified Home

Can Boise real estate owners count on home loan modifications?

Even though the Boise real estate market has posted many successive months of record setting foreclosure numbers, there is a new number that is at record highs as well, and it has a much more positive tone to it. Permanent loan modifications have started to bail out many homeowners in the area and have the pace that these modifications are being completed at will help lift the market. 

As a measure of caution, there is a set number of these loan modifications set apart for Boise real estate owners who may be facing trouble and in risk of falling behind on their home payments, or even losing their homes altogether. As these modifications are set to become permanent, the rate of acceptance of them is steadily increasing and has reached about 15% currently. 

The program started when the federal government launched the Home Affordable Modification Program last year, with an initial seed deposit of $75 billion. It is designed to help homeowners who are more than 60 days behind on their home payments. The ambitious goal for the program has been set at modifying 3-4 million home loans before 2012. This affect Boise real estate owners by granting them another tool in their arsenal of dealing with the quagmire of upside down mortgages and falling home values.


With the banks initially approaching this program with some scepticism, the pace of modifications being converted from temporary to permanent was very slow. With the insistance of the Obama administration to pick up these conversion rates, many banks are beginning to grant them permanent status at much higher rates now. 


This means that Boise real estate sellers will be able to get their temporary home loan modification transfered from temporary status into permanent status if it means that they will have a higher likelihood of keeping their homes.


Many Boise real estate owners at risk of losing their homes may be tepid about the realistic possibility of having their home loan reduced. To help sway them into at least trying, pointing out that the average payment reduction a regular home owner has is around 36%. That is a median rate of savings around $500 per month. If that does not encourage you to try to get a loan modification, there may not anything that will.

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Is Land A Secure Boise Real Estate Investment At The Current Time?

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Is buying a building lot a good idea for Boise real estate investors?

With all of the ups and down over the last few years in the Boise real estate market, many investors are left to wonder if it is yet safe to purchase and invest in land. As with any form of investing, investing in land has inherent risks, but you can minimize them by following these practices.

 

Getting a loan may make things easier on your wallet but involving the bank only costs you more money in the long run. By keeping the bank out of the equation, you will maintain control over your own situation and be able to make decisions based on logic, instead of fear. The likelihood of facing a foreclosure or being dispossessed of your property in any other way is greatly diminished when you own it free and clear. I realize this is not an option for most people, so maybe consider it as an ideal more than anything else. For those whom this strategy is a possible or realistic one, Boise real estate is the safest place to store your cash, and avoid being taxed on it.

 

Keeping your Boise real estate that is free of debt as rental or income properties is a great way to compile a source of income that is always there when you need it. Let us say you earn $300,000 per year in your business and the income tax for your tax bracket would simply take about half of that amount, if not more. Using your tax money to purchase real estate, instead of simply paying it directly to the IRS, is easier than you might think, and will effect your net sheet in such a way that you will actually pay less in taxes. As always, get the input of your accountant before you try anything like this or you may end up costing yourself.

 

Buying building lots for investments can be more risky because there is an over abundance of inventory in most U.S. markets, due to overzealous lenders and developers during the boom earlier in the decade. You can get some very good deals on the building lot market, especially when buying reo lots in bulk. The best investment plan for buying building lots would be a longer term plan that involves buying and holding, due to the fact that they will not yield much, if any, profit for some time in the short term.

 

Keep in mind that the bank is not your friend when buying real estate, so buying with cash is always the best option. You can even start a partnership with a local builder to build income housing on your lots and split the money, to begin to establish a positive cash flow on lots that otherwise would not be paying you much if any income.

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Idaho AG Is Making Sure Boise Real Estate Market Is Safe

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fraudulent loans Idaho AG Is Making Sure Boise Real Estate Market Is Safe

Boise homeowners struggle with loan modification fraud!

With foreclosures on the Boise real estate market increasing in 20009, consumer complaints of homeowners seeking loan modifications did too. As foreclosure rates have gone through the roof, so have fraud claims against people who supposedly do loan modifications, according to the Idaho attorney generals office. Those complaints constituted 19 percent of all those received by the office.

 

"We received reports of outrageous fraud," said Attorney General Lawrence Wasden. "Some of these operators took advantage of desperate homeowners by charging hundreds or even thousands of dollars in upfront fees, while taking no action to modify the mortgage."  The Attorney Generals office rapidly sought out and received three settlements and filed two lawsuits on behalf of citizens and victims. This kind of criminal act leaves nearly all homeowners in the Boise real estate market without any avenue to keep their homes.

 

It also hired a part-time house counselor to work with Boise real estate owners to facilitate loan modifications and to reverse, postpone or cancel foreclosures. To help out, free foreclosure handbooks were printed up and handed out.

 

Collecting restitution for the Idaho taxpayers, Wardens’ office brought in 7.4 million dollars, is an important function for the Attorney Generals office, and average of $12.14 for every tax dollar spent on funding for Consumer Affairs. In addition to that, Wasden and company gathered another $5.9 million dollars in civil penalties, fees and fines for the Idaho tax payers, which is the greatest haul to date for that classification. Back in 1998, the AG's office negotiated a settlement with the tobacco industry which netted Idahoans a $31 million windfall for the year of 2009. With a total net to date of $254 million, this agreement has helped Idaho tremendously.

 

When you compare the 13 salaried staff members in the consumer operations department, with the $44 million that Boise real estate holders made back from their efforts, the department is a boon for Idaho. The department was very effective in the broad range of topics it worked in last year. It prosecuted and settled consumer protection cases with Eli Lilly & Co., other pharmaceutical manufacturers and several businesses. Illegal monopolies and price fixing remained huge targets, as well as any issue in the anti-trust arena. They even managed to reach an agreement involving a price fixing vitamin company.

 

The telemarketing industry as well, has been put on notice, with the addition of over 900,000 phone numbers to the protective 'do not call" list. Soon the office will release an important DVD which teaches children how to avoid sexual predators online, called "ProtecTeens".

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Idaho AG Is Making Sure Boise Real Estate Market Is Safe

Will The Boise Real Estate Market Be Helped Out By The Remainder Of The Nation?

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With The Rest Of The Nation Experiencing Significant Growth, Will Boise Real Estate Improve Soon?

housing market recovery Will The Boise Real Estate Market Be Helped Out By The Remainder Of The Nation?

Housing construction posted a better-than-expected increase in January which pushed activity to the highest level in six months. The solid gain raised hopes that Boise real estate is beginning to mount a sustained rebound from its worst slump in decades.

 

 

The Commerce Department said Wednesday that construction of new homes and apartments rose 2.8 percent last month to a seasonally adjusted annual rate of 591,000 units. The projections had indicated that number would be around 3% lower than it turned out being.

 

Building permit applications which have always been a good measurement of future action dropped about 4.9 percent to about 621,000 units, following 2 months of substantial growth.

 

For added proof of the recovery, recent numbers were revised to include the latest increase for December which indicated the builders were working at a pace of 575,000 units in that month, and that is up from the expected 557,000 initially indicated. If it were not for the arctic cold blast that dominated the nation all through the last half of December, chilling construction projects in the process, the market may not have slipped by .7% during that period.

 

Local economic experts are indicating that the Boise real estate market may be showing a sign of recovering as it is trying to bolster and maintain a steady trend of appreciation that it has demonstrated since the spring.

 

The most significant gains in the nation last year were in the Northeast with about a 10% jump in activity, and the West with around 8.9% increase to its markets. The Midwest was next with a 3.2 percent increase and the South added only about 1%.

 

Construction activity rates increased from January 2009 to 2010 by just over 21%, which is a good sign as long as it keeps going up. Last month's building rate the fastest pace for Boise real estate since July.

 

Construction of single-family homes rose by 1.5 percent to a seasonally adjusted annual rate of 484,000 units. With a total of 107,000 multi-family units, sporting a 9.2% increase to bolster numbers there.

 

The jobs market is a very substantial number in any real estate market and as the unemployment rate dips below 10% again, consumer confidence is starting to return, along with it is optimism. As the unemployment figures go down confidence in the market seems to build, due in part to the fact that construction is a major employer in the Boise real estate market.

 

By keeping the interest rates low and agreeing to purchase additional mortgage backed securities, the Fed Reserve is doing as much as they can to help out a market still trying to find its' feet. Some builders are also reporting that the government stimulus plan has started to yield additional projects as well. First time home buyers can collect a tax credit of up to $8,000, and current homeowners can collect as much as $6,500 when they sell and buy again.

 

Representatives of the home builders association indicated that they were a little more in agreement that the construction industry seems to be recovering Other good indicators for the Boise real estate market include double digit appreciation for home in California markets.

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10 Techniques To Make Owning Boise Real Estate Easier!

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Buying real estate in Boise, or anywhere for that matter can have it's difficulties, so I have put together a top ten list of helpful hints. Use them to organize yourself while searching through home listings and deciding which homes you should pursue or exclude.

What are the most important steps to take to buy Boise real estate?

 

1. Decide what you can comfortably pay. Purchasing a house in Boise that costs a little more than double your combined gross income yearly is considered to be typical.

 

2. Put together a list of things you want in your house. Make sure to put them in order of importance for your Boise real estate too.

 

3. Choose where you wish to live. Keep careful notes on any area or municipality that you want to live in, and cautiously research important community characteristics like fire protections, police effectiveness, jobs and schools.

 

4. Save some money for purchasing your home. Use your cash reserves to pay a nice deposit on your home purchase, or pay toward your loan fees or a rate buy down? You are best served to put down at least twenty percent of the purchase price for a down payment. Also, don’t forget to factor in closing costs. Closing costs — including taxes, attorney’s fee, and transfer fees — average between 2 and 7 percent of the home price.

 

5. Firm up your credit scores. Pulling your own credit report and proactively fixing any negative reporting on it is a great way to head off problems in buying Boise real estate. Banks use your credit history to make sure you are reliable, so take the initiative to confirm it yourself.

 

6. Meet with a loan officer to go over the basics. How large of mortgage do you qualify for? Maybe you want a lower rate initially, then you should look at an ARM, but if you are looking for a consistent payment check out a 30 year note.

 

7. Complete the application process and get pre-approved to buy Boise real estate. Organize all the documentation a lender will need to pre-approve you for a loan. Many times the people who underwrite loans for banks will have to validate information like job confirmation, retirement fund statements or saving account statements.

 

8. Be prepared with back up funding for the down payment on your home. Always be aware of any municipal or federal programs that may help you with your down payment? Using any first time home buyer assistance is always advisable to spare your cash so you can spend it on other fees, or furniture. As a down payment source, your retirement account, like your 401k, can sometimes be tapped without penalty to purchase your first home.

 

9. Counting every single expense in buying a home. Find out the extra costs of home ownership, including tax and insurance, HOA fees and maintenance costs so you are not surprised when you move in. In Boise, tallied bills may lump in municipal sewer, garbage and city water expenses as well!

 

10. Hire an experienced real estate agent. The guidance and insight of a certified real estate professional is invaluable. Boise real estate agents will eagerly help you in your home purchase and counsel you on coming investments likewise!

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