TrustIdaho - Boise Real Estate and Homes
Real Estate In Boise, Meridian, Eagle, Nampa Idaho
Purchasing a Home After a Short Sale or Foreclosure
Many have questions regarding how long it takes to be eligible to purchase a home if a foreclosure is currently on record or you have sold your home via the short sale route. Below you will find detailed information to help shed light on the subject!
I can be reached directly at 208-869-3469 and am happy to answer any questions that you may have!
According to RealtyTrac, foreclosure rates in the 1st half of this current year decreased 84% in 211 metropolitan areas examined.
Although foreclosure rates are improving in most metropolitan markets, RealtyTrac experts assume that the waning foreclosure numbers could be a natural side effect of the robo-signing debacle which is slowing the foreclosure process instead of a true clearing of excess foreclosure inventory.
Areas located in Arizona, Nevada and California was at the top of the list for metro areas with the highest foreclosure filings.
Florida, whose markets are well known for being hit very hard by the real estate bubble burst, saw a taper in foreclosure activity within the 1st half of the year with only Cape Coral-Fort Myers showing up within the top-twenty cities with the largest foreclosure rates. Interestingly enough, cities within Florida held 9 spots on the top twenty lists from 2010.
The highest metro foreclosure rate is currently held by the Las Vegas-Paradise metro area. One in every 19 housing units have become subject to foreclosure filings within the 1st half of the year which is 6 times higher than the national average.
Another area which ranked high (2.96% foreclosure rate) was the Reno-Sparks area. Down 8% was the Phoenix-Mesa-Scottsdale areas which saw 60,985 properties receive a foreclosure filing in the 1st half of 2011—a reduction of nearly 17% from a year ago.
FHA lenders can now allow homeowners to go 12 months late before a mortgage is declared in default. The old requirement was 120 days. This has advantages and disadvantages to the homeowner.
The main advantage is more time for homeowners to try and work something out, and thereby save their home.
It is still three years (at a minimum) after a foreclosure (or “foreclosure type event”) before they can qualify for a new mortgage. This is measured from the time the old home is lost, not from when they go into default. So if the old home cannot be saved, this longer process delays a fresh start.
My advice to the homeowner in trouble? Make every effort to make good on all obligations. At the first sign of trouble, contact the lender, and be up-front and honest. If a workout arrangement is made, make sure it is something you can do, based on your circumstances at the time. Do not bet on something down the road. And get everything in writing.
Economic difficulty is a fact of life for many people these days. But some old rules are still valid – do the best you can, communicate well, and keep good records.
The first half of the year saw foreclosure filings falling dramatically as processing delays at banks strapped with an overabundance of repossessed homes continued to alter the numbers.
Filings for foreclosures went down 29% in comparison with the same period a year ago—down 25% from the last 6 months of 2010.
One in every 111 households received a foreclosure notice through June 30th of this year—approximately 1.2 million home owners within the United States.
Second quarter filings marked the lowers quarterly total since the end of 2007 as the meltdown in the mortgage industry was at its initial phases.
Some feel that the economic improvement within the foreclosure market can be traced to the processing delays brought on by the robo-signing scandal which discovered that bank employees were signing foreclosure documents without following all of the appropriate protocol. Some assume that there may be as many as 1 million foreclosure auctions which were delayed in 2011 due to the scandal that will be hitting the block in 2012 or later. As a result, the housing slump may be prolonged.
Bank owned properties accounted for 28% of all home sales within the first quarter of 2011 even though the sale of foreclosed homes declined. This rate is nearly six times higher than a normal housing market should be.
Realty Trac Inc stated on May 26th that foreclosure sales hit the highest level of overall sales within a year during the first quarter nationally and also stated that the percentage of homes sold in foreclosure should be below 5%–in a normal market.
The sale of foreclosed homes in California accounted for 45% of all of the home sales within the first 3 months of 2011—down from 48% in 2010. Foreclosed properties sold for roughly 34% less than the average sale price of non-distressed property. Foreclosure sales in Arizona accounted for 45% of the overall sales in the first quarter—down 2 percentage points from 2010.
Numerous other states had sales of foreclosed property which accounted for ¼ of the sales of homes in the first quarter of 2011: Florida, Michigan, Oregon, Virginia, Colorado, Illinois, Georgia, Ohio and Idaho.
Court delays have caused the pace of the foreclosure process to slow in the past months. However, distressed homes and property remain within the housing market. The homes, as mentioned previously, are often in need of repair and sell at a substantial discount. This, of course, weakens prices for alternate homes for sale.
In the first quarter nationally, 158,434 distressed homes were sold. This is down 16% from the last 3 months of 2010 and down 36 percent from a year ago. Even though the sale of bank-owned properties declined, this still accounted for almost 19% of all sales—up from 17% in the fourth quarter of 2010.
There are still 872,000 homes that are being held by lenders yet still need to be sold. At the current pace it will take 3 years to clear the inventory of 1.0 million homes for sale already in a certain stage of foreclosure. This amounts to a 2 year supply for bank owned property alone.
Home Buyers saved an average of 35% when purchasing bank owned homes. This discount is unchanged from the previous quarter.
The largest discounts on foreclosure property can be found in Ohio where these homes sold for an average of 41% less than non-distressed homes for sale.
Nevada, who led the United States in foreclosure sales, showed that 53% of homes that were sold were distressed (bank owned or short sale). Nevada has an inventory of 28,000 bank owned properties currently on the market or scheduled to hit the market.
The waiting periods in order to qualify for a home loan after a foreclosure, deed-in-lieu, short sale and bankruptcy varies both by the government agency purchasing or insuring the loan as well as the dollar amount of the loan.
Conventional Conforming (FNMA/FHLMC)
1) Foreclosure is 7 years
2) Deed-in-Lieu is 4 years < 80% LTV and 5 years > 80% LTV for primary residences. 7 years for second homes and investment properties regardless of LTV.
3) Short Sales is 2 years < 80% LTV and 5 years > 80% LTV and 7 years > 90% LTV
4) Bankruptcy is 4 years
Conventional Non-Conforming (JUMBO)
1) Foreclosure is 7 years
2) Deed-in-Lieu is 7 years
3) Short Sale is 7 years
4) Bankruptcy is 7 years
Federal Housing Administration (FHA)
1) Foreclosure is 3 years
2) Deed-in Lieu is 3 years
3) Short Sale is 3 years
4) Bankruptcy is 2 years
Veterans Administration (VA)
1) Foreclosure is 2 years
2) Deed-in Lieu is 2 years
3) Short Sale is 2 years
4) Bankruptcy is 2 years
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Legal transactions always involve the use of forms and contracts to make the deal enforceable. These include selling a residential property such as a home.
Selling real estate properties require the use of specific forms. These can be the standard ones or the state specific forms. The reason is that some states have their own set of laws when it comes to buying and selling homes which homeowners and real estate agents should follow.
Whether you’re selling your home on your own or are using a real estate agent, here are some of the most important forms that you should prepare.
This particular document is required from sellers. As per its name, it aims to disclose the physical condition of the property at the time of sale. To gain the trust of potential buyers and agents, home sellers needs to be as honest as they can in providing information about the real state of the property such as repairs made and other existing physical defects.
Those selling homes built before 1978 are required to submit this form as per the Residential Lead-Based Paint Hazard Reduction Act of 1992. The goal is to disclose any known information regarding the use of lead paint and possible hazards, the location of this paint and condition of painted surfaces.
Executing this form is also a way of protecting the parties involved. This can even serve as a deciding factor for the buyer whether to push through with the purchase or not after learning of the property’s condition.
Also known as a purchase agreement or sales agreement/contract, this document states the intention of the buyer. It specifies the proposed purchase price and details of the person buying the property as well as suggestions for an appraisal and home inspection if necessary. It should also state the payment terms such as if a deposit is required, how much and who should handle the amount.
Normally, an escrow agent is needed and in most cases, a lawyer acts as the agent.
This can be presented by buyers who may not be amenable to the requested purchase price by the seller. Most often, the counter offer asks for a lower amount and this done formally through the execution of a document. This contains the property address, original and proposed selling price, terms and conditions, date when the proposal ends and suggested terms of payment.
There are two options when the counter offer is accepted by the seller. It’s either the revisions will be included in the offer to purchase document or the signed counter offer will serve as supporting document to the sales contract.
If the homeowner has earlier called for a professional to do a home inspection, he or she can provide a copy of the inspection report to the potential buyer. This will give the buyer a concrete idea in advance on the real condition of the residential property being sold and can even save him or her additional costs.
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August sales in Ada County were 421. That’s a decrease from August ’09 of 19%. Year-To-Date ’10 is now 3,954; an increase of 18% over the first eight months of 2009. Historically, sales volume is about the same July to August. From 2006 to now we’ve had two years with decreases, one year with an increase and one year in which it stayed the same. This August was up over July ’10 by almost 7%.
Of our total sales in August…52% were distressed….up 6% from last month.
Pending sales rose slightly in August to 724; from 700 in July. Pending sales in April were 1,162; May 806.
The percentage of pending sales in distress fell 3% from July to 43% overall. That’s down nearly 22% our high in March. One bright note, default filings continue to slow.
Inventory took its biggest “hit” in August; falling from 3,288 in July to 3,094. At the same time, the percentage of active inventory that is distressed, showed no change from July…holding steady at 39%. In Ada County we have 8 months of inventory on hand. The price category in shortest supply…$200k – $250k at 7.2 months.
Median home continued to improve; holding on to gains made starting in March of this year. In August our combined median was $163,000; down 4.1% from August ’09. We’ve been enjoying median price improvement since February. YTD comparison to ’09 is off 9.6%…and closing. New Homes median price, for those 59 people who bought new homes in August, increased by almost 6% over this period last year. At the same time it dropped $27k from July. Interestingly, average sales price retreated from the $200k numbers in July to $186,608.
source: acar
Pioneer Title Co. is launching its own PTC Index. It is a monthly measurement of the Treasure Valley real estate market. The index combines nine critical measurements of the real estate market into a single number. Those figures are based on a custom-weighted algorithm.
The goal of the index, according to Pioneer Title, is to give industry professionals, media, and the public a sense of the market’s vitality at any given time. By measuring current data over time and against historical averages, the company hopes to provide context to the recent turbulent real estate market.
“We’ve spent more than six months creating and calibrating the PTC index,” said Tim Bundgard, president of Pioneer Title.
Culled from various private and public sources, it takes into account variables such as new home sales, days on the market and notices of default, and building permits.
“If it were human, it’d show we are having a heart attack,” Bundgard said as he pointed to the chart comparing 2005 to 2010.
The PTC Index and corresponding analysis will be published monthly on Pioneer Title’s corporate Web site, as well as PTCindex.com.
“Our hope is that real estate agents, developers, and others will find it a useful tool to add to their decision-making process,” Bundgard said.
Additionally, it will also be published in Idaho Economic Indicators, a quarterly publication of the Idaho Business Review.
Source: IBR
