Short Sale Changes to Freddie and Fannie

Posted May 2, 2012 by Blake Mayes
Categories: Blake Mayes Team, Boise Bank Owned Homes, Boise REO Real Estate, Meridian Idaho Foreclosures

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Good news for real estate investors, first time home buyers, and agents that work in short sales!

Starting June 15 agents working with distressed homeowners whose loans are handled by Fannie Mae and Freddie Mac can expect to get a decision of their short sale offer within 30-60 days. The new guidelines issues by the GSEs fall under the Servicing Alignment Initiative rolled out last fall and aims to bring more transparency to the short sale process and also to expedite decisions related to these types of pre-foreclosure sales.

You can find more info on what short sales are here.

In essence a short sale is not only an effective foreclosure alternative when keeping the home is not an option but it also helps keep homes occupied and maintains a more stable community. These new changes will hopefully address real estate agents number one complaint concerning short sales by establishing a new uniform set of minimum response times that services must follow.

So what happens if more time is needed?
If more than 30 days is required services must provide the borrow with weekly updates on progress and must come to a decision no later than 60 days from the date of the BRP/offer was received. Should a service make a counteroffer the borrower is then expected to respond within 5 business days; the servicer must respond within 10 business days of receiving the borrower’s response.

For the most part these changes come as a welcome relief to what can be a complicated process. Are you facing foreclosure, or need help understanding short sales? Talk to me and see how working with a qualified REALTOR® can help you!

Tips for Young Boise Real Estate Investors

Posted April 6, 2012 by Blake Mayes
Categories: Blake Mayes Team, Boise Bank Owned Homes, Boise REO Real Estate

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Like most everything in life reward only comes with diligence,discipline,and a plan. Increasingly your wealth through real estate investment is no different. Despite real estate being considered to be among the safest investments you can make there can be a lot of things to intimidate one to think successful investing is impossible.

Here are a few things to keep in mind for those just getting started:

Working with Sellers: Honesty is the best policy.
If you see potential in a property you are listing, don’t be afraid to gush over it a little bit; encourage your seller to raise their price accordingly. Even if the market is down in your area you can be a part of bringing it back – and it’s always better to negotiate down than to be caught low. Be particular to detail, especially those that are only your personal taste, but don’t try to oversell something that’s less than shiny.

Pick the Right Property
Even in a 50/50 neighborhood there will without a doubt be at least a few homes that are a cut above, or even one that is the “gem” of the subdivision. Maybe it’s got a immaculate corner yard, or backyard oasis, but for whatever reason it stands out. THAT is your home. It will be easier to sell, and likely bring higher return…right?

Well. Yes and no. Sad fact is a diamond in the rough is still IN the rough; surroundings can have a big effect on the value of a home. Even the most modest home in a higher grade community will be worth more and appreciate more than the most palatial residence if it’s located in a slum. It’s important to know if you’re in it for a longer turn return or just a quick turn around. Remember: location, location, location is still important important important!

Price Isn’t Everything
Interest rates are the other thing. It’s a little detail in some respects but young investors often forget that a real estate transaction isn’t like other everyday purchases. When you buy real estate you are not simply trading a flat sum for a product you are essentially paying a reverse annuity to the seller for the property (or vice versa). It’s never a bad idea to shop around a bit for the best interest rate before you take on any property as being the “perfect” one.

…No Really, the Price ISN’T Everything.
Now you thought we just said that but the other thing you need to remember is that the cost alone isn’t what the property will cost you. A $100,000 listing may seem like a steal until you remember the transaction fees, mortgage cost, insurance cost, and oh yeah….taxes. That sweet quick $100k turnaround just sent you for a $190,000 loop.

Down Town.
Seems like common sense: Never leave money on the table. Likewise don’t spend money you don’t have or don’t need to spend. One way you can handle both sides of that are by never putting down any less than 20%. Doing so may require you to take out more mortgage insurance; that alone could slowly eat away at your dividends.

Buying real estate as an investment entails a lot more than just your normal transaction. It’s more than a simple transfer of property; to insure your success you need to be aware that you’re buying (or selling) much more than just four walls and a roof. There are costs beyond the sticker price of the house, no matter how long or short it is in your hands.

Yes, a house is a home. But you’re missing out if you see it as nothing but. Real estate is a financial instrument that, under the right conditions, can help you generate lasting wealth.

Bank Owned Homes in Boise as well as Boise HUD Owned Real Estate are great picks for investors looking to cut their teeth. The Blake Mayes Team can help you find the best properties to get started, or help you refine your investment strategies for better returns. Contact us today to find out how we can help!

Idaho Distressed Property News

Posted September 28, 2011 by Blake Mayes
Categories: Blake Mayes Team, Boise Bank Owned Homes, Boise Foreclosure Real Estate, Boise REO Real Estate

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boise bank owned homesThe inventory of homes for sale in the Treasure Valley has fallen to the lowest level we’ve seen since June of 2006 when the home buying frenzy was just cooling down. Mortgage rates remain steady, near record lows, and on the surface this seems like a recipe for increases in home prices and sales.

Despite that however home prices aren’t too far off their 10 year low points in Ada and Canyon counties. There are a number of reasons for this, one of which is the more stringent lending practices currently in effect particularly for those looking to work with Fannie or Freddie. This is just one little snag in the market that is currently still dominated by distressed properties.

Two out of every three homes sold in Canyon county and two of every five in Ada county were distressed according to the Intermountain Multiple Listing Service.

This means that the sellers of the homes were in such deep financial turmoil that their homes had either been repossesed by the bank or were being sold off for less than the amounts still owed on the mortgages.

“REO properties and short sales are a big part of our market, and we’re going to see that for a while,” said Blake Mayes, owner of Blake Mayes Team at RE/Max Capital City in Boise.

For those willing to brave this market there can be great returns however. You can find lists of over 500 bank owned homes online. That number of homes doesn’t include the ones that need work before they go to market or those that mortgage-backed securities companies may still be in the process of taking back from homeowners.

People who don’t HAVE to sell their homes generally aren’t selling now, with prices as low as they are. Many more other homeowners simply CAN’T sell because they owe more on their mortgages than their homes are worth.

Some are giving up rather than struggling to make payments. “There’s still a lot of people who are making the decision to let their house go because they are so upside down on the value,” Mayes said. “There’s no way of knowing how much is out there.”

Thankfully the number of upside-down homeowners in the Treasure Valley is decreasing somewhat, dropping 1% between March and June. Underwater homeowners who’d like to sell, and those who’ve lost a lot of equity, are hunkering down to await better prices.

This limits the market for newly built homes, too unfortunately. New-home construction remains sluggish. Since 2006, one of every two residential-construction jobs in the Valley has disappeared; this has spelled hard times for the struggling jobs market.

As more homeowners are staying put fewer and fewer homes in Idaho are being sold the old-fashioned way – by sellers seeking to relocate, move up or downgrade. The local supply of homes is also down some 25% from what it was just a year ago, and many agents in the valley report multiple offers coming in on low-priced distressed properties – and those properties are in fact moving quickly.

Many local REALTORS are still optimistic, noting that Idaho has remained relatively well insulated as compared to some of the other national markets. And with great news about the Gem State growing, being top ranked as a good place to live and retire we’re seeing many out-of-state buyers and retirees stimulating the market. This up turn is good news in real estate and most expect home values to rise 3-4% a year, but many advise it will likely still be a decade before they return to their pre-2006 prices.

Boise Homes Make for Great Retirement!

Posted September 22, 2011 by Blake Mayes
Categories: Blake Mayes Team, Boise Bank Owned Homes, Boise Homes for Sale

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great living in BoiseBoise has been named as one of the top places in the country to retire, and to those who love the City of Trees this is no surprise. Whether you can’t survive without culture and arts or are an avid outdoor recreation nut there’s no doubt that Boise is one of the crowning jewels of the Gem State.

No one will try to hype Boise as being a bustling metropolis, but despite it’s relevantly small size by national comparison it is home to a thriving cultural scene which includes an opera company, several orchestra and theater productions as well as wonderful Art and History museums.

Residents of the Treasure Valley enjoy access to all manner of outdoor activities from trail hiking to fishing, hunting, biking, skiing, rafting and more! Surrounded by mountains and a number of streams and rivers Boise also boasts a mild climate year round making for more chances to get out and enjoy what nature has to offer.

Low cost of living and the number of available amenities are made even better by the low levels of crime in Boise which is about half of the national average and remarkable for a city of it’s growing size.

Here are some vital stats:

Population: 205,600
% over 50: 30%
Median home price: $120,000
Top state income tax: 7.8%*
Cost of living index: 97

Whether you are looking for the perfect place to retire, or simply relocating to Idaho for work or a change of pace, Boise has a lot to offer any potential resident. The Blake Mayes Team knows Boise real estate and can not only help you find some of the best homes in Idaho but also help you get settled in to the valley. Visit our website to learn more about Boise or to get started finding homes in Boise online today!

Meridian Idaho Home for Sale

Posted September 13, 2011 by Blake Mayes
Categories: Blake Mayes Team, Boise Bank Owned Homes, Meridian Idaho Foreclosures

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Great Living in Meridian Idaho

meridian idaho homesBeautiful and elegant two story home unlike any other around it. This great home has some amazing views. Very large 4 bed 3 bath with over 3529 sqft of living space. Large and open yard. Lot is over 1.20 acres for you to enjoy with tons of space for RV parking or room to store the other toys. Inside you will love the marble entry way, and huge gourmet kitchen. Granite counters and beautiful flooring.

Bank Owned real estate in Idaho is a hot ticket these days and The Blake Mayes Team is prepared to help you make the most of this historically unique Idaho real estate market. There are still tons of great deals on outstanding properties in Boise and around the Treasure Valley and you can find them all on our website! Visit our website and use the searches or contact us to get help from our team of experienced Boise Realtors!

Boise Real Estate: Big Homes are OUT

Posted August 17, 2011 by Blake Mayes
Categories: Blake Mayes Team, Boise Bank Owned Homes, Boise Homes for Sale

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Just one of the services we provide as leaders in the Boise real estate community is keeping our visitors and clients up to date on the latest trends and happenings in the real estate world. This blog is just one method of outreach for sharing our available Boise homes and the real estate market news you need to know. On to the latest:

Trends are showing that buying a super-sized home in todays market could lead to woes down the road when it comes time to sell.

A study by the National Association of Home Builders states that by 2015 new homes will be 10% smaller, green, and packed with more technology and features than today’s homes.

The NAHB’s study on new homes in 2015 caters to the reality of the economic downtown and the developing “less is more” movement that has come to include everything from homes designed with fewer frivilous features and smaller “pocket neighborhoods” with smaller homes.

The study itself covers answers from over 230 home building professionals including home builders, architects, designers, and manufacturers who say the average new single family home in 2015 will be about 2,500 square feet. This is a good 10% smaller than the average homes started in 2010 and the first major change to come since 2007.

Even these new smaller homes may yet be too large considering the fact that more than 60% of all US households are made up of only one or two people according to the Census Bureau.

These small homes do have their perks however. Smaller homes cost less to build and maintain especially when it comes to heating and cooling costs. As the population itself ages and tight mortgage is tight these smaller homes will be a great benefit for those in need of afforable living.

Other key points of the report:

The living room is no more! The traditional concept of the living room will either disappear or merge with a “great room” style or become a smaller personal parlor.

Other rooms that get the out will include a third bathroom, fourth bedroom, dining room, or bonus room.

Greener living. From “low-e” windows to engineered beams and air flow design the homes of the future will be change not only HOW the homes are built but WHAT they are being built with.

Collective design. More technological conveniences that require less room and feature options to help better adapt a home for people of numerous age ranges and personal preferences.

There’s nothing wrong with loving luxury, and everyone likes to have plenty of room to grow and play. No matter what kind of homes in Boise you may be looking for The Blake Mayes Team can help you find them! Contact us today to find the real estate in Boise you’ve been dreaming of!

Boise Foreclosure Real Estate Update

Posted August 4, 2011 by Blake Mayes
Categories: Blake Mayes Team, Boise Bank Owned Homes, Boise Foreclosure Real Estate, Boise Homes for Sale, Boise REO Real Estate

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boise bank owned homesForeclosures in Boise, Nampa, and other Treasure Valley cities has declined since May as compared to the same time last year. This has been the ninth month in a row that the local foreclosure rate has fallen.

Reports shows that the rate of foreclosures for outstanding mortgage loans in the Boise area was over 2.5%  this May which is actually down from the over 3% that is was in 2010 – which is far below the national foreclosure rate of nearly 3.5%.

In addition the mortgage delinquency rates have also dropped with the 90 day or more rate being over a full percent lower than last years rate. Idaho homes likely to become short sales or foreclosures has also decreased slightly as compared to last year as well.

This turn could lead to a smaller inventory of available foreclosure properties in the Treasure Valley overall and a rise in general housing prices if these changes continue, making it an optimal time to find some of the best deals in Idaho real estate. Are you currently looking for a home in Boise, Eagle or Meridian?  We can help you find the best available homes online today! Contact The Blake Mayes Team or visit our website to start finding homes today!