Greenspan: Uptick in Home Prices Needed
Economic recovery depends on staunching the downward flow of home prices, says former Federal Reserve Chair Alan Greenspan.As long as home prices continue to decline, the economy won’t stabilize, he predicts.
"The bulk of conforming mortgages made since 2005 are close to being underwater," Greenspan says. "We can take another 5 percent decline in house prices without much macroeconomic impact. But if prices fall by 12 percent, more than 4 million additional home owners will be underwater.”
Monday, June 29, 2009
Foreclosure / Short Sale / REO's Teton Valley Idaho - Jackson Hole Wyoming
Canadians Seek U.S. Property Bargains
Canadians are snapping up property in the United States. The Canadian “Loonie” is at par with the U.S. dollar for the first time since 1976—an exchange rate that makes homes and condos in the U.S. look like a real deal.
Canadian investment in U.S. real estate more than doubled in one year, from 11 percent in 2007 to 23.5 percent in 2008, making Canada the largest foreign real estate investor in the U.S., according to the National Association of REALTORS®.
Mark Dziedzic, a former financial planner from Toronto, currently living in Arizona, says, “When the Loonie hit a $1.10, it created a real buzz for Canadians, not only those looking to buy second homes, but we’re also seeing them buying purely from an investment standpoint.”
Canadians are snapping up property in the United States. The Canadian “Loonie” is at par with the U.S. dollar for the first time since 1976—an exchange rate that makes homes and condos in the U.S. look like a real deal.
Canadian investment in U.S. real estate more than doubled in one year, from 11 percent in 2007 to 23.5 percent in 2008, making Canada the largest foreign real estate investor in the U.S., according to the National Association of REALTORS®.
Mark Dziedzic, a former financial planner from Toronto, currently living in Arizona, says, “When the Loonie hit a $1.10, it created a real buzz for Canadians, not only those looking to buy second homes, but we’re also seeing them buying purely from an investment standpoint.”
Sunday, June 28, 2009
Foreclosure / Short Sale / Bank Owned REO's Teton Valley Idaho Real Estate - Jackson Hole Wyoming Real Estate
The sign on the wall in my high school football locker room read, "Failing to Prepare, is Preparing to Fail." Never has this been truer if you are considering buying a foreclosed property today. There are many pitfalls that can befall the novice foreclosure property buyer. Failing to prepare in this case can cost you much heartache and many thousands of unanticipated dollars. It is not advisable to show up at the courthouse for the very first time on the day you expect to bid and hopefully buy that dream foreclosure. Do you think Tiger Woods shows up at the U.S. Open at a course he has never played before and just walks up to the first tee to start the competition cold? Nope. Tiger has a team and works hard to be successful.
Tiger does not fail to prepare and his results show it. You shouldn't fail to prepare either. You have to know what you don't know, so you don't lose your shirt when trying to buy a foreclosed property. Visit the courthouse often to see how the process works.
To cover all the bases adequately, you need a good team with the following members:
1. Broker
If you are not an expert who studies and works in the real estate market every day, then you need an experienced real estate broker to: perform a comparative market analysis for your target property, review land use and zoning to check for conformity and/or grandfather status, check neighborhood for long term viability (is it going up or going down) and review homeowners association or condominium association information for past foreclosures which can cause higher fees going forward. Many associations are assessing current and new owners for unpaid shortfalls caused by foreclosures.
If the property is in a golf club community, he should consider the number of homes already built there which would have to share in the substantial cost of operating a golf club if the developer either fails or files for bankruptcy. She should check on availability and terms of insurance prior to you making a bid. Florida insurance underwriters are having withdrawal symptoms over any unoccupied building and it may become difficult or impossible to obtain an insurance binder to insure against fire, windstorm and vandalism. Having a tenant in place will help get better insurance rates. All these issues are a factor in considering how much to pay for a property.
2. Contractor/Inspector
If you are not a licensed contractor that has knowledge and experience with roofs, HVAC's, plumbing, electrical, structural, landscaping and mold-related issues, then you need such a person on your team. This is crucial and can save you tremendous amounts of money. A walk through a target property for a peek using untrained eyes and a quick "go/no-go" gut decision can cost you thousands of dollars later.
Do not look for the cheapest inspector. Look for the contractor/inspector who is most thorough with years of experience. Ask for references from his clients over the past two years and ask for a sample report so you know what level of detail to expect. Skimping here to save a few hundred dollars can easily cost you thousands of dollars later. Defaulting mortgagors or vandals could have stripped the property of every appliance and fixture. Ignored routine maintenance for many months can lead to costly capital improvements.
Leaks and mold can hide unseen inside walls. You need help to estimate rehab costs to fix everything for your budget. Get the best inspector money can buy. He will save you lots of money, frustration and lost downtime needed to bring the property back to a "no deferred maintenance" status so it can be occupied, rented or resold ASAP. Phase I environmental audits are recommended for commercial properties to insure no toxic site contamination exits. Your motto here is "No Surprises."
3. Real Estate Attorney
If you are not a real estate attorney who is familiar with all the legal pitfalls that can occur when buying a foreclosed property, then you need a knowledgeable real estate attorney on your team. Fort Myers real estate attorney Jay Brett helped me prepare for this article by providing me with a list of things to do or to avoid doing when buying a foreclosed property. Some of his advice:
- Title Search
A thorough title search will uncover construction or tax liens, junior lien mortgages or other encumbrances such as a Lis Pendens where other parties may have claims against the property and be claimants who were not joined in the pending foreclosure action. How would you like to be the winning bidder at the courthouse and pay $50,000 for a home only to learn later that a $50,000 second mortgage and a $4,000 construction lien to an HVAC contractor still exist, regardless of the fact that the HVAC compressor has already been stripped out? You also need to know whether there are any back taxes or assessments owed, as these will not be wiped out by any foreclosure action.
- Tenants
Tenants can be a blessing or a curse. You need to know which one you will inherit before you buy it. Check for tenants who may occupy the property and who may later claim possession rights under a written (or oral) lease that could include an option to buy the property which may still be enforceable. You cannot rely solely on public records or a review of the foreclosure case to determine whether a tenant is present. You or your broker should inspect property and look for signs of a tenant (or squatter). It is also important that your attorney check to see whether there exists "subordination", "attornment" and/or "non-disturbance" provisions built either into the mortgage being foreclosed or in any leases that may be in effect. For example, if a tenant is in place and there is a "non-disturbance" clause in either the foreclosed mortgage or the tenant's lease which was approved by the foreclosing lender, a new owner may have no choice but to continue to honor that tenant's lease, provided they are not in default. It is critical that your attorney carefully review not only the leases but the terms of the foreclosed mortgage as well.
Alternative Methods
If you decide there is simply too much risk for your appetite in buying a foreclosure on the court house steps, you should consider working directly with banks and other lenders who already have an inventory of foreclosed properties called REOs (Real Estate Owned). Some banks wish to unload these properties quickly to avoid payments of real estate commissions and other carrying costs.
---------------------------------
Timothy S Anderson
Silver Peaks Realty
Anderson Residential and Commercial Construction Services
pH 208 390 0737
www.buytetonland.com
Tiger does not fail to prepare and his results show it. You shouldn't fail to prepare either. You have to know what you don't know, so you don't lose your shirt when trying to buy a foreclosed property. Visit the courthouse often to see how the process works.
To cover all the bases adequately, you need a good team with the following members:
1. Broker
If you are not an expert who studies and works in the real estate market every day, then you need an experienced real estate broker to: perform a comparative market analysis for your target property, review land use and zoning to check for conformity and/or grandfather status, check neighborhood for long term viability (is it going up or going down) and review homeowners association or condominium association information for past foreclosures which can cause higher fees going forward. Many associations are assessing current and new owners for unpaid shortfalls caused by foreclosures.
If the property is in a golf club community, he should consider the number of homes already built there which would have to share in the substantial cost of operating a golf club if the developer either fails or files for bankruptcy. She should check on availability and terms of insurance prior to you making a bid. Florida insurance underwriters are having withdrawal symptoms over any unoccupied building and it may become difficult or impossible to obtain an insurance binder to insure against fire, windstorm and vandalism. Having a tenant in place will help get better insurance rates. All these issues are a factor in considering how much to pay for a property.
2. Contractor/Inspector
If you are not a licensed contractor that has knowledge and experience with roofs, HVAC's, plumbing, electrical, structural, landscaping and mold-related issues, then you need such a person on your team. This is crucial and can save you tremendous amounts of money. A walk through a target property for a peek using untrained eyes and a quick "go/no-go" gut decision can cost you thousands of dollars later.
Do not look for the cheapest inspector. Look for the contractor/inspector who is most thorough with years of experience. Ask for references from his clients over the past two years and ask for a sample report so you know what level of detail to expect. Skimping here to save a few hundred dollars can easily cost you thousands of dollars later. Defaulting mortgagors or vandals could have stripped the property of every appliance and fixture. Ignored routine maintenance for many months can lead to costly capital improvements.
Leaks and mold can hide unseen inside walls. You need help to estimate rehab costs to fix everything for your budget. Get the best inspector money can buy. He will save you lots of money, frustration and lost downtime needed to bring the property back to a "no deferred maintenance" status so it can be occupied, rented or resold ASAP. Phase I environmental audits are recommended for commercial properties to insure no toxic site contamination exits. Your motto here is "No Surprises."
3. Real Estate Attorney
If you are not a real estate attorney who is familiar with all the legal pitfalls that can occur when buying a foreclosed property, then you need a knowledgeable real estate attorney on your team. Fort Myers real estate attorney Jay Brett helped me prepare for this article by providing me with a list of things to do or to avoid doing when buying a foreclosed property. Some of his advice:
- Title Search
A thorough title search will uncover construction or tax liens, junior lien mortgages or other encumbrances such as a Lis Pendens where other parties may have claims against the property and be claimants who were not joined in the pending foreclosure action. How would you like to be the winning bidder at the courthouse and pay $50,000 for a home only to learn later that a $50,000 second mortgage and a $4,000 construction lien to an HVAC contractor still exist, regardless of the fact that the HVAC compressor has already been stripped out? You also need to know whether there are any back taxes or assessments owed, as these will not be wiped out by any foreclosure action.
- Tenants
Tenants can be a blessing or a curse. You need to know which one you will inherit before you buy it. Check for tenants who may occupy the property and who may later claim possession rights under a written (or oral) lease that could include an option to buy the property which may still be enforceable. You cannot rely solely on public records or a review of the foreclosure case to determine whether a tenant is present. You or your broker should inspect property and look for signs of a tenant (or squatter). It is also important that your attorney check to see whether there exists "subordination", "attornment" and/or "non-disturbance" provisions built either into the mortgage being foreclosed or in any leases that may be in effect. For example, if a tenant is in place and there is a "non-disturbance" clause in either the foreclosed mortgage or the tenant's lease which was approved by the foreclosing lender, a new owner may have no choice but to continue to honor that tenant's lease, provided they are not in default. It is critical that your attorney carefully review not only the leases but the terms of the foreclosed mortgage as well.
Alternative Methods
If you decide there is simply too much risk for your appetite in buying a foreclosure on the court house steps, you should consider working directly with banks and other lenders who already have an inventory of foreclosed properties called REOs (Real Estate Owned). Some banks wish to unload these properties quickly to avoid payments of real estate commissions and other carrying costs.
---------------------------------
Timothy S Anderson
Silver Peaks Realty
Anderson Residential and Commercial Construction Services
pH 208 390 0737
www.buytetonland.com
Friday, June 26, 2009
Teton Valley Idaho - Jackson Hole Wyoming Real Estate
Real Estate Improves in California
Median prices for single-family homes in California have risen for the third straight month, reaching $267,570, up 4 percent from April, according to a report from the California Association of REALTORS®.
The inventory of homes continues to drop, falling a 4.2-month supply in May, compared to 8.7 month supply in May 2008.
California’s real estate market always has been seen as a leading indicator for the rest of the country.
What is happening in California bodes well for the rest of the nation, observers say.
Median prices for single-family homes in California have risen for the third straight month, reaching $267,570, up 4 percent from April, according to a report from the California Association of REALTORS®.
The inventory of homes continues to drop, falling a 4.2-month supply in May, compared to 8.7 month supply in May 2008.
California’s real estate market always has been seen as a leading indicator for the rest of the country.
What is happening in California bodes well for the rest of the nation, observers say.
Teton Valley Idaho - Jackson Hole Wyoming Real Estate
Hello !
Call for details :
- once million dollar homes - golf course resort property trading for :
$ 325 K !!!!
----------------------------
Looking for that piece of property not in a subdivision :
- 2.5 acres for $ 159K !!
Sincerely - your friend and well wisher.
Timothy S Anderson
Silver Peaks Realty
Anderson Residential and Commercial Construction Trades
pH 208 390 0737
www.buytetonland.com
Call for details :
- once million dollar homes - golf course resort property trading for :
$ 325 K !!!!
----------------------------
Looking for that piece of property not in a subdivision :
- 2.5 acres for $ 159K !!
Sincerely - your friend and well wisher.
Timothy S Anderson
Silver Peaks Realty
Anderson Residential and Commercial Construction Trades
pH 208 390 0737
www.buytetonland.com
Wednesday, June 24, 2009
Foreclosure / REO's / Short Sales Teton Valley Idaho - Jackson Hole Wyoming
What the Heck Is a Short Sale?
Over the last several years a lot of buyers have bought homes, intending to live in them for many years, then something happened - maybe good, maybe bad, but regardless - they don't have a choice. Some owners have to move.
When most homeowners move, they sell their house. Usually, that's not a problem. For some people nowadays, it is a problem.
Because of the easy financing, rampant speculation, flipping, and sometimes fraud, home values skyrocketed most everywhere. That came to an end recently and values plummeted in some areas. Even when values are stable, sometimes there just isn't enough money in the property to pay off the mortgage, then pay all the selling costs and moving costs.
What happens then?
Default, sometimes bankruptcy, and maybe even foreclosure.
Or a short sale.
A short sale is when the lender agrees to accept a mortgage payoff that doesn't cover the outstanding loan.
Why do lenders accept short sales? Lenders almost always lose money when they foreclose on property. In many cases, they will lose less money through a short sale than they would by foreclosing on the home and selling it as a bank-owned property.
However, there are rules.
The borrower must experience a genuine financial hardship. If this fits, call the lender. Talk to customer service or the collection department and let them know what is going on. That way, knowledge of your hardship is communicated to the lender and becomes a part of their files. Keep your own communication log.
Eventually, you will have to document the hardship and your inability to deal with it financially by disclosing all your assets. Bank statements, stocks, bonds, tax returns, pay stubs -- the lender will want to see everything that may document that you are not hiding assets or income.
The lender will not make a commitment based solely on your hardship.
You're also going to have to put your home on the market and sell it.
Once you sell the property, you have to supply additional documentation.
When the property is listed, your real estate agent prepares a comparative market analysis. You're going to need that and you will need to supply a copy to the lender, along with your hardship letter, the documents mentioned above, a copy of the purchase agreement, and a "net sheet" showing how much you will net (or lose) from the sale of the home.
It may be that you actually want your real estate agent or some other professional to negotiate with your lender. If so, you need to prepare an authorization letter.
That letter includes your name, property address, loan number, your representative's name, the date and your notarized signature. Your agent will know almost all of this and have the proper format.
Then your agent submits it all to your lender and...you wait.
Normally, your lender can't make the decision to accept a short sale on their own. If there is mortgage insurance, they get a say-so. Your mortgage has an investor. The investor gets a say-so.
If the deal "makes sense", they believe your hardship is genuine, and you do not own any other property -- you may get a "yes" decision. Your chances go up markedly if you have someone experienced negotiating for you.
Oh yes. If your lender does forgive part of your debt, there is something you should also know. Debt forgiveness is taxable income. The IRS will require you to pay taxes on that income.
Over the last several years a lot of buyers have bought homes, intending to live in them for many years, then something happened - maybe good, maybe bad, but regardless - they don't have a choice. Some owners have to move.
When most homeowners move, they sell their house. Usually, that's not a problem. For some people nowadays, it is a problem.
Because of the easy financing, rampant speculation, flipping, and sometimes fraud, home values skyrocketed most everywhere. That came to an end recently and values plummeted in some areas. Even when values are stable, sometimes there just isn't enough money in the property to pay off the mortgage, then pay all the selling costs and moving costs.
What happens then?
Default, sometimes bankruptcy, and maybe even foreclosure.
Or a short sale.
A short sale is when the lender agrees to accept a mortgage payoff that doesn't cover the outstanding loan.
Why do lenders accept short sales? Lenders almost always lose money when they foreclose on property. In many cases, they will lose less money through a short sale than they would by foreclosing on the home and selling it as a bank-owned property.
However, there are rules.
The borrower must experience a genuine financial hardship. If this fits, call the lender. Talk to customer service or the collection department and let them know what is going on. That way, knowledge of your hardship is communicated to the lender and becomes a part of their files. Keep your own communication log.
Eventually, you will have to document the hardship and your inability to deal with it financially by disclosing all your assets. Bank statements, stocks, bonds, tax returns, pay stubs -- the lender will want to see everything that may document that you are not hiding assets or income.
The lender will not make a commitment based solely on your hardship.
You're also going to have to put your home on the market and sell it.
Once you sell the property, you have to supply additional documentation.
When the property is listed, your real estate agent prepares a comparative market analysis. You're going to need that and you will need to supply a copy to the lender, along with your hardship letter, the documents mentioned above, a copy of the purchase agreement, and a "net sheet" showing how much you will net (or lose) from the sale of the home.
It may be that you actually want your real estate agent or some other professional to negotiate with your lender. If so, you need to prepare an authorization letter.
That letter includes your name, property address, loan number, your representative's name, the date and your notarized signature. Your agent will know almost all of this and have the proper format.
Then your agent submits it all to your lender and...you wait.
Normally, your lender can't make the decision to accept a short sale on their own. If there is mortgage insurance, they get a say-so. Your mortgage has an investor. The investor gets a say-so.
If the deal "makes sense", they believe your hardship is genuine, and you do not own any other property -- you may get a "yes" decision. Your chances go up markedly if you have someone experienced negotiating for you.
Oh yes. If your lender does forgive part of your debt, there is something you should also know. Debt forgiveness is taxable income. The IRS will require you to pay taxes on that income.
Teton Valley Idaho - Jackson Hole Wyoming Real Estate
Hello !
There is an EXTREMELY GREAT DEAL in a nice, well done subdivision in Teton Valley Idaho.
This is a 32 ac lot for $ 150 000.
THAT'S 32 ACRES !!!!!!111
Very stunning views and some unbelievable terrain.
Call me for details on this parcel.
This property should not last long.
Sincerely - your friend and well wisher.
Timothy S Anderson
Silver Peaks Realty
Anderson Residential and Commercial Construction Services
pH 208 390 0737
www.buytetonland.com
There is an EXTREMELY GREAT DEAL in a nice, well done subdivision in Teton Valley Idaho.
This is a 32 ac lot for $ 150 000.
THAT'S 32 ACRES !!!!!!111
Very stunning views and some unbelievable terrain.
Call me for details on this parcel.
This property should not last long.
Sincerely - your friend and well wisher.
Timothy S Anderson
Silver Peaks Realty
Anderson Residential and Commercial Construction Services
pH 208 390 0737
www.buytetonland.com
Foreclosure / Short Sale / REO's Teton Valley Idaho - Jackson Hole Wyoming Real Estate
Commercial Real Estate Still Tumbling
Commercial real estate prices fell 8.6 percent in April, Moody’s Investors Service reports. Moody’s Managing Director Nick Levidy says the decline reflects deals that closed in late 2008 and early 2009 when the market was at its most troubled.
Levidy speculates that the falling prices suggest that buyers are adapting to the realities of the declining market. He predicts that more distress sales are on the way.Richard Parkus, Deutsche Bank head of Commercial Mortgage-backed Securities and Asset-Backed Securities Synthetics Research, says U.S. commercial real estate values may fall by more than 50 percent compared to prices in 2007 and will probably take six to eight years to recover.
"We are not only not approaching stability, we are at a period of maximum deterioration," Parkus says.
Commercial real estate prices fell 8.6 percent in April, Moody’s Investors Service reports. Moody’s Managing Director Nick Levidy says the decline reflects deals that closed in late 2008 and early 2009 when the market was at its most troubled.
Levidy speculates that the falling prices suggest that buyers are adapting to the realities of the declining market. He predicts that more distress sales are on the way.Richard Parkus, Deutsche Bank head of Commercial Mortgage-backed Securities and Asset-Backed Securities Synthetics Research, says U.S. commercial real estate values may fall by more than 50 percent compared to prices in 2007 and will probably take six to eight years to recover.
"We are not only not approaching stability, we are at a period of maximum deterioration," Parkus says.
Teton Valley Idaho - Jackson Hole Wyoming Real Estate
Will 'Echo Boomers' Save the Housing Market?
Echo boomers, the children of baby boomers, will be the salvation of the housing market, Harvard University's Joint Center for Housing Studies predicts.In its annual state of the nation’s housing study, the center says that the 75 million Americans born between 1979 and 1995 will mean plenty of demand for housing units.
"There will be 5 million more echo boomers than there were boomers when they first started swelling housing markets," says Eric Belsky, executive director of the Joint Center.Belsky predicts that once the job market turns around, the housing market will recovery quickly because inventories are close in balance between supply and demand.
But the study warns that while echo boomers will increase demand significantly, they may not drive up prices much because their real incomes are lower than those earned by people a decade older when they entered the job market.
"While fundamentally we see what could be the foundation for long-term recovery, we still have to get through today's challenges," says Nicolas Retsinas, director of the Harvard center.Sources: CNNMoney.com, Les Christie, and Reuters, Lynn Adler (06/22/2009)
Echo boomers, the children of baby boomers, will be the salvation of the housing market, Harvard University's Joint Center for Housing Studies predicts.In its annual state of the nation’s housing study, the center says that the 75 million Americans born between 1979 and 1995 will mean plenty of demand for housing units.
"There will be 5 million more echo boomers than there were boomers when they first started swelling housing markets," says Eric Belsky, executive director of the Joint Center.Belsky predicts that once the job market turns around, the housing market will recovery quickly because inventories are close in balance between supply and demand.
But the study warns that while echo boomers will increase demand significantly, they may not drive up prices much because their real incomes are lower than those earned by people a decade older when they entered the job market.
"While fundamentally we see what could be the foundation for long-term recovery, we still have to get through today's challenges," says Nicolas Retsinas, director of the Harvard center.Sources: CNNMoney.com, Les Christie, and Reuters, Lynn Adler (06/22/2009)
Tuesday, June 23, 2009
Foreclosure / Short Sale / REO's Teton Valley Idaho - Jackson Hole Wyoming
Commercial Real Estate Concerns Get Aired At US TARP Hearing
By Judith Burns, Of DOW JONES NEWSWIRES
WASHINGTON -(Dow Jones)- Some lawmakers welcomed news Tuesday that 10 of the nation's largest banks are poised to repay billions of federal assistance but warned that a "ticking time bomb" in commercial real estate could deal a punishing blow to lenders and the economy.
"I am very concerned about the ticking time bomb we face in commercial real estate lending," congressional Joint Economic Committee Chair Carolyn Maloney, D-N.Y. said at a hearing Tuesday. She noted that an estimated $400 billion of commercial real estate loans are coming due this year, with another $300 billion due in 2010.
If commercial real estate developers cannot refinance or pay off that debt, " we could expect to see the default rate on commercial mortgages climb much higher," Maloney warned.
Maloney's comments came at a hearing into the $700 billion Troubled Asset Relief Program approved by Congress to help banks saddled with soured assets linked to risky home mortgage loans. Just before the hearing began, the U.S. Treasury Department announced that 10 recipients of so-called TARP funds will repay a total of $68 billion, which Maloney called "welcome news."
The hearing follows the release of a new Congressional Oversight Panel report on the TARP, which faulted recent "stress tests" of 19 large financial firms by the Treasury Department and the Federal Reserve, saying the economic assumptions probably were too rosy and that the projections only run through 2010.
"We simply are asking for more," Congressional Oversight Panel chair Elizabeth Warren told lawmakers. She recommended that the stress tests be run again, with tougher assumptions, and be continued as long as banks hold troubled assets.
As a case in point, Warren noted that the U.S. unemployment rate projected for 2009 under the stress tests' "worst-case scenario" was 8.9%, but "we're now at 9.4%,"
"This is a real concern, the worst case scenario in 2009 is in fact not the worst case," said Warren, whose panel is monitoring the Treasury's spending of the bailout money.
In addition, the oversight panel called for regulators to issue more information about the stress-test methodology, allowing outside analysts to replicate the tests themselves.
-By Judith Burns, Dow Jones Newswires, 202-862-6692; Judith.Burns@dowjones.com
(Michael Crittenden and Maya Jackson Randall contributed to this article.)
By Judith Burns, Of DOW JONES NEWSWIRES
WASHINGTON -(Dow Jones)- Some lawmakers welcomed news Tuesday that 10 of the nation's largest banks are poised to repay billions of federal assistance but warned that a "ticking time bomb" in commercial real estate could deal a punishing blow to lenders and the economy.
"I am very concerned about the ticking time bomb we face in commercial real estate lending," congressional Joint Economic Committee Chair Carolyn Maloney, D-N.Y. said at a hearing Tuesday. She noted that an estimated $400 billion of commercial real estate loans are coming due this year, with another $300 billion due in 2010.
If commercial real estate developers cannot refinance or pay off that debt, " we could expect to see the default rate on commercial mortgages climb much higher," Maloney warned.
Maloney's comments came at a hearing into the $700 billion Troubled Asset Relief Program approved by Congress to help banks saddled with soured assets linked to risky home mortgage loans. Just before the hearing began, the U.S. Treasury Department announced that 10 recipients of so-called TARP funds will repay a total of $68 billion, which Maloney called "welcome news."
The hearing follows the release of a new Congressional Oversight Panel report on the TARP, which faulted recent "stress tests" of 19 large financial firms by the Treasury Department and the Federal Reserve, saying the economic assumptions probably were too rosy and that the projections only run through 2010.
"We simply are asking for more," Congressional Oversight Panel chair Elizabeth Warren told lawmakers. She recommended that the stress tests be run again, with tougher assumptions, and be continued as long as banks hold troubled assets.
As a case in point, Warren noted that the U.S. unemployment rate projected for 2009 under the stress tests' "worst-case scenario" was 8.9%, but "we're now at 9.4%,"
"This is a real concern, the worst case scenario in 2009 is in fact not the worst case," said Warren, whose panel is monitoring the Treasury's spending of the bailout money.
In addition, the oversight panel called for regulators to issue more information about the stress-test methodology, allowing outside analysts to replicate the tests themselves.
-By Judith Burns, Dow Jones Newswires, 202-862-6692; Judith.Burns@dowjones.com
(Michael Crittenden and Maya Jackson Randall contributed to this article.)
Foreclosure / Short Sale / REO's Teton Valley Idaho - Jackson Wyoming
Bank Gives Cities, States First Shot at REOs
Bank of America is making it easier for states and cities to buy foreclosures before investors purchase them.The program is a result of the U.S. Department of Housing and Urban Development’s Neighborhood Stabilization Program, which aims to encourage redevelopment of neighborhoods hit hardest by foreclosure and the resale of properties to home owners.
Bank of America will notify participating cities that properties are available before they are listed on multiple listing services.
The company will set the prices with no haggling allowed."We're balancing our desire to work with communities that are struggling to stabilize with our fiduciary duty to the investors that hold the paper on all these properties," says Rob Grossman, senior vice president of community affairs for Bank of America. "We will offer them the best price."
Bank of America is making it easier for states and cities to buy foreclosures before investors purchase them.The program is a result of the U.S. Department of Housing and Urban Development’s Neighborhood Stabilization Program, which aims to encourage redevelopment of neighborhoods hit hardest by foreclosure and the resale of properties to home owners.
Bank of America will notify participating cities that properties are available before they are listed on multiple listing services.
The company will set the prices with no haggling allowed."We're balancing our desire to work with communities that are struggling to stabilize with our fiduciary duty to the investors that hold the paper on all these properties," says Rob Grossman, senior vice president of community affairs for Bank of America. "We will offer them the best price."
Teton Valley Idaho - Jackson Hole Wyoming Real Estate
NAR: Existing-Home Sale Continue to Rise Sales of existing homes showed another gain in May, benefiting from favorable affordability conditions and a first-time buyer tax credit, according to the NATIONAL ASSOCIATION OF REALTORS ®.
May’s increase was the first back-to-back monthly gain since September 2005.Existing-home sales – including single-family, townhomes, condominiums and co-ops – rose 2.4 percent to a seasonally adjusted annual rate of 4.77 million units in May from a downwardly revised level of 4.66 million units in April. Sales remained 3.6 percent below the 4.95 million-unit pace in May 2008.Lawrence Yun, NAR chief economist, expected an improvement in sales. “Historically low mortgage interest rates clearly drew buyers into the market, and housing remains very affordable even with a recent uptick in rates,” Yun says.
“First-time buyers also are being drawn off the sidelines by the $8,000 tax credit, which is helping to absorb inventory. Poor Appraisals Stall TransactionsHowever, the increase in sales is less than expected because poor appraisals are stalling transactions. Pending home sales indicated much stronger activity, but some contracts are falling through from faulty valuations that keep buyers from getting a loan.”Total housing inventory at the end of May fell 3.5 percent to 3.80 million existing homes available for sale, which represents a 9.6-month supply at the current sales pace, down from a 10.1-month supply in April.
Yun says the appraisal problem is serious. “Lenders are using appraisers who may not be familiar with a neighborhood, or who compare traditional homes with distressed and discounted sales,” he says. “In the past month, stories of appraisal problems have been snowballing from across the country with many contracts falling through at the last moment. There is danger of a delayed housing market recovery and a further rise in foreclosures if the appraisal problems are not quickly corrected.”NAR President Charles McMillan says appraisals and the tax credit are key issues.
“To maximize the potential for a housing recovery and subsequent economic recovery, we need realistic appraisals that are based on proper comparisons and done by a local specialist,” he said. “In addition, the first-time buyer tax credit should be expanded to all buyers of primary homes regardless of income. Extending the credit into 2010 would allow more time for the market to catch up with underlying demand, in part because many families with children, who normally time their purchase based on school year considerations, do not have enough time to move before the start of school in late August.
“Freeing a pent-up demand in housing will absorb inventory at a faster pace, strengthen communities and stabilize home prices earlier,” McMillan said.A Closer Look at May Housing DataAn NAR practitioner survey in May showed first-time buyers accounted for 29 percent of transactions, and that the number of buyers looking at homes is nearly 10 percentage points higher than a year ago.
“This is the time of year when we see large increases in the number of repeat buyers, who are benefiting from sales to entry-level buyers,” Yun says. “Investors appear less active, but are more prevalent in areas with large price corrections.”National median existing-home price: for all housing types was $173,000 in May, down 16.8 percent from a year earlier. Distressed properties, which declined to 33 percent of all sales in May from 45 percent in April, continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes. “The decline in the distressed sales share likely results from an increase of repeat buyers in May,” Yun says.
“First-time buyers are concentrated in the lower price ranges, which include most of the distressed sales.”Single-family home sales: rose 1.9 percent to a seasonally adjusted annual rate of 4.25 million in May from a pace of 4.17 million in April, but are 3 percent below the 4.38 million-unit level in May 2008.
The median existing single-family home price was $172,900 in May, down 16.1 percent from a year ago.Existing condominium and co-op sales: increased 6.1 percent to a seasonally adjusted annual rate of 520,000 units in May from 490,000 in April, but are 8.9 percent below the 571,000-unit level in May 2008. The median existing condo price was $173,800 in May, down 21.9 percent from a year earlier.
By the RegionHere’s how housing fared across the country for existing-home sales:
Northeast: rose 3.9 percent to an annual level of 800,000 in May, but are 10.1 percent below a year ago. Median price: $243,600, which is 12.5 percent below May 2008.
Midwest: jumped 9 percent in May to a pace of 1.09 million but are 4.4 percent below May 2008. Median price: $145,800, which is 10.4 percent lower than a year ago.
South: unchanged at an annual pace of 1.74 million in May but are 8.9 percent below a year ago. Median price: $157,400, down 9.9 percent from May 2008.
West: slipped 0.9 percent to an annual rate of 1.14 million in May, but are 11.8 percent higher than May 2008. Median price: $197,700, down 30.6 percent from a year ago.
May’s increase was the first back-to-back monthly gain since September 2005.Existing-home sales – including single-family, townhomes, condominiums and co-ops – rose 2.4 percent to a seasonally adjusted annual rate of 4.77 million units in May from a downwardly revised level of 4.66 million units in April. Sales remained 3.6 percent below the 4.95 million-unit pace in May 2008.Lawrence Yun, NAR chief economist, expected an improvement in sales. “Historically low mortgage interest rates clearly drew buyers into the market, and housing remains very affordable even with a recent uptick in rates,” Yun says.
“First-time buyers also are being drawn off the sidelines by the $8,000 tax credit, which is helping to absorb inventory. Poor Appraisals Stall TransactionsHowever, the increase in sales is less than expected because poor appraisals are stalling transactions. Pending home sales indicated much stronger activity, but some contracts are falling through from faulty valuations that keep buyers from getting a loan.”Total housing inventory at the end of May fell 3.5 percent to 3.80 million existing homes available for sale, which represents a 9.6-month supply at the current sales pace, down from a 10.1-month supply in April.
Yun says the appraisal problem is serious. “Lenders are using appraisers who may not be familiar with a neighborhood, or who compare traditional homes with distressed and discounted sales,” he says. “In the past month, stories of appraisal problems have been snowballing from across the country with many contracts falling through at the last moment. There is danger of a delayed housing market recovery and a further rise in foreclosures if the appraisal problems are not quickly corrected.”NAR President Charles McMillan says appraisals and the tax credit are key issues.
“To maximize the potential for a housing recovery and subsequent economic recovery, we need realistic appraisals that are based on proper comparisons and done by a local specialist,” he said. “In addition, the first-time buyer tax credit should be expanded to all buyers of primary homes regardless of income. Extending the credit into 2010 would allow more time for the market to catch up with underlying demand, in part because many families with children, who normally time their purchase based on school year considerations, do not have enough time to move before the start of school in late August.
“Freeing a pent-up demand in housing will absorb inventory at a faster pace, strengthen communities and stabilize home prices earlier,” McMillan said.A Closer Look at May Housing DataAn NAR practitioner survey in May showed first-time buyers accounted for 29 percent of transactions, and that the number of buyers looking at homes is nearly 10 percentage points higher than a year ago.
“This is the time of year when we see large increases in the number of repeat buyers, who are benefiting from sales to entry-level buyers,” Yun says. “Investors appear less active, but are more prevalent in areas with large price corrections.”National median existing-home price: for all housing types was $173,000 in May, down 16.8 percent from a year earlier. Distressed properties, which declined to 33 percent of all sales in May from 45 percent in April, continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes. “The decline in the distressed sales share likely results from an increase of repeat buyers in May,” Yun says.
“First-time buyers are concentrated in the lower price ranges, which include most of the distressed sales.”Single-family home sales: rose 1.9 percent to a seasonally adjusted annual rate of 4.25 million in May from a pace of 4.17 million in April, but are 3 percent below the 4.38 million-unit level in May 2008.
The median existing single-family home price was $172,900 in May, down 16.1 percent from a year ago.Existing condominium and co-op sales: increased 6.1 percent to a seasonally adjusted annual rate of 520,000 units in May from 490,000 in April, but are 8.9 percent below the 571,000-unit level in May 2008. The median existing condo price was $173,800 in May, down 21.9 percent from a year earlier.
By the RegionHere’s how housing fared across the country for existing-home sales:
Northeast: rose 3.9 percent to an annual level of 800,000 in May, but are 10.1 percent below a year ago. Median price: $243,600, which is 12.5 percent below May 2008.
Midwest: jumped 9 percent in May to a pace of 1.09 million but are 4.4 percent below May 2008. Median price: $145,800, which is 10.4 percent lower than a year ago.
South: unchanged at an annual pace of 1.74 million in May but are 8.9 percent below a year ago. Median price: $157,400, down 9.9 percent from May 2008.
West: slipped 0.9 percent to an annual rate of 1.14 million in May, but are 11.8 percent higher than May 2008. Median price: $197,700, down 30.6 percent from a year ago.
Monday, June 22, 2009
Teton Valley Idaho / Jackson Hole Wyoming Real Estate
Summertime....Will the Home Buying be Easy?
By Lawrence Yun, Chief Economist, NAR Research
It was a good kick-off for the summer season. The pending home sales index figure that was released earlier this month marked a third straight month of rising pending sales.
That is certainly welcome and encouraging news. It is fairly obvious that first-time buyers are responding to the incentives of rock-bottom mortgage rates and the first-time buyer tax credit to pick up relatively cheaply priced homes.
Indeed, recent figures suggest about 45 percent of buyers have been first-timers – a higher proportion than the typical 35 to 40 percent during more normal years.
A high proportion of the transacted homes are distressed, either in foreclosure or requiring a lender approval short-sale, with deep discounted prices. By the fourth quarter, existing-home sales are projected to be about 15 percent higher compared to the comparable period the year before if all goes as planned.
Some of the recent first-time buyer transactions will help existing homeowners to make the sale and then buy the next home. Other first-time buyers purchasing vacant home still are helping in terms of absorbing inventory.
By Lawrence Yun, Chief Economist, NAR Research
It was a good kick-off for the summer season. The pending home sales index figure that was released earlier this month marked a third straight month of rising pending sales.
That is certainly welcome and encouraging news. It is fairly obvious that first-time buyers are responding to the incentives of rock-bottom mortgage rates and the first-time buyer tax credit to pick up relatively cheaply priced homes.
Indeed, recent figures suggest about 45 percent of buyers have been first-timers – a higher proportion than the typical 35 to 40 percent during more normal years.
A high proportion of the transacted homes are distressed, either in foreclosure or requiring a lender approval short-sale, with deep discounted prices. By the fourth quarter, existing-home sales are projected to be about 15 percent higher compared to the comparable period the year before if all goes as planned.
Some of the recent first-time buyer transactions will help existing homeowners to make the sale and then buy the next home. Other first-time buyers purchasing vacant home still are helping in terms of absorbing inventory.
Thursday, June 18, 2009
Foreclosure / Short Sale / Bank Owned REO'S Teton Valley Idaho - Jackson HOle Wyoming
Foreign Investors Bullish on U.S. Real Estate
Foreign real estate investors expect the U.S. real estate market to recover by the end of the second quarter of 2010, according to a survey released Wednesday by the Association of Foreign Investors in Real Estate (AFIRE).
Survey respondents were optimistic about the prospects for good returns, with more than two-thirds planning to invest in U.S. real estate before the end of the year.
About 31 percent said they were more hopeful now about the health of the U.S. real estate market than they were in January, 16 percent said they were more pessimistic, and 53 percent said their opinion had stayed the same.
The 200 members surveyed predicted that Washington, D.C., New York City, and San Francisco would be the first cities to recover, followed by Boston and Los Angeles.
Foreign real estate investors expect the U.S. real estate market to recover by the end of the second quarter of 2010, according to a survey released Wednesday by the Association of Foreign Investors in Real Estate (AFIRE).
Survey respondents were optimistic about the prospects for good returns, with more than two-thirds planning to invest in U.S. real estate before the end of the year.
About 31 percent said they were more hopeful now about the health of the U.S. real estate market than they were in January, 16 percent said they were more pessimistic, and 53 percent said their opinion had stayed the same.
The 200 members surveyed predicted that Washington, D.C., New York City, and San Francisco would be the first cities to recover, followed by Boston and Los Angeles.
Wednesday, June 17, 2009
Teton Valley Idaho - Jackson Hole Wyoming Real Estate
U.S. Ups the Ante in Foreclosure Program
The U.S. government is offering another $3.1 billion to mortgage servicing companies to encourage them to modify loans for borrowers facing foreclosure.
More than 9 percent of 45 million U.S. mortgages, or about 4 million loans, were delinquent in the first quarter of 2009, according to the Mortgage Bankers Association.The Obama administration put up $50 billion in March as an incentive to encourage the mortgage industry to modify loans to make monthly payments more affordable.
So far, however, the plan hasn’t been very effective with relatively few borrowers able to qualify. To increase the numbers, the administration last month expanded the program to provide incentives for lenders to streamline their short-sale processes.
As of this week about 50,000 borrowers are enrolled in three-month trial modifications under the plan, the Treasury Department says.
Part of the problem, lenders say, is the volume of applicants, which has overwhelmed workers charged with modifying the loans.
The U.S. government is offering another $3.1 billion to mortgage servicing companies to encourage them to modify loans for borrowers facing foreclosure.
More than 9 percent of 45 million U.S. mortgages, or about 4 million loans, were delinquent in the first quarter of 2009, according to the Mortgage Bankers Association.The Obama administration put up $50 billion in March as an incentive to encourage the mortgage industry to modify loans to make monthly payments more affordable.
So far, however, the plan hasn’t been very effective with relatively few borrowers able to qualify. To increase the numbers, the administration last month expanded the program to provide incentives for lenders to streamline their short-sale processes.
As of this week about 50,000 borrowers are enrolled in three-month trial modifications under the plan, the Treasury Department says.
Part of the problem, lenders say, is the volume of applicants, which has overwhelmed workers charged with modifying the loans.
Foreclosure / Short Sale / Bank Owned REO's Teton Valley Idaho - Jackson Hole Wyoming
Can Buying Cheap Foreclosures Make You Rich?
Speculators are buying up an uncounted, but certainly significant percentage of homes for sale in cities where the meltdown has hit hardest.
Homes.com reports a 30- to 50-percent year-over-year increase in searches for homes in foreclosure-heavy states, including California, Michigan, and Florida.
In these states, helping long-distance investors find and close on properties and close has become a burgeoning real estate specialty.
The investors run the gamut from international speculators seeking a house or two to venture capital firms that buy bundles of homes for 25 cents on the dollar — most in need of renovation and some with substantial tax liens.Will these investments lead to riches?
Possibly, if housing prices go back up and if investors are able to fix up and rent the properties out while they wait to sell, experts say.
Speculators are buying up an uncounted, but certainly significant percentage of homes for sale in cities where the meltdown has hit hardest.
Homes.com reports a 30- to 50-percent year-over-year increase in searches for homes in foreclosure-heavy states, including California, Michigan, and Florida.
In these states, helping long-distance investors find and close on properties and close has become a burgeoning real estate specialty.
The investors run the gamut from international speculators seeking a house or two to venture capital firms that buy bundles of homes for 25 cents on the dollar — most in need of renovation and some with substantial tax liens.Will these investments lead to riches?
Possibly, if housing prices go back up and if investors are able to fix up and rent the properties out while they wait to sell, experts say.
Tuesday, June 16, 2009
Teton Valley Idaho - Jackon Hole Wyoming Real Estate
Housing Starts Up, Builder Confidence Down
New housing starts were up 17.2 percent in May for an annual rate of 532,000, compared to 454,000 in April, according to the Commerce Department’s monthly report.
Building permits, an indication of future growth, increased 4 percent to an annualized 518,000. Despite these increases, builder confidence waned in June, after rising for two months, the National Association of Home Builders reported.
The NAHB/Wells Fargo Housing Marketing Index slipped to 15 from 16 in May. Even so, that number is about twice what it was in January. Anything under 50 is considered a negative number.
New housing starts were up 17.2 percent in May for an annual rate of 532,000, compared to 454,000 in April, according to the Commerce Department’s monthly report.
Building permits, an indication of future growth, increased 4 percent to an annualized 518,000. Despite these increases, builder confidence waned in June, after rising for two months, the National Association of Home Builders reported.
The NAHB/Wells Fargo Housing Marketing Index slipped to 15 from 16 in May. Even so, that number is about twice what it was in January. Anything under 50 is considered a negative number.
Teton Springs Victor Idaho / Foreclosure - Short Sale - Bank Owned REO's / Teton Valley Idaho - Jackson Wyoming
Foreclosures Drive Prices Down
Foreclosures drive down the value of neighboring homes an average of $7,200 per home with the total loss in property values totaling $500 billion, says a recent report from the Center for Responsible Lending, a consumer advocacy group.
The study calculated that home owners who lived within 300 feet of a foreclosed residential property experienced a drop of 1.3 percent in home value; those living 300 to 500 feet of the foreclosed home see a drop in value of 0.6 percent.
Ellen Schloemer, the executive vice president of the Center for Responsible Lending, estimates that foreclosures would affect an estimated 91.5 million neighboring homes over the next four years.
“As the foreclosure crisis continues to worsen, the contagion is spreading,” Schloemer says. “You can’t just say those foreclosures are hurting someone else.”
Foreclosures drive down the value of neighboring homes an average of $7,200 per home with the total loss in property values totaling $500 billion, says a recent report from the Center for Responsible Lending, a consumer advocacy group.
The study calculated that home owners who lived within 300 feet of a foreclosed residential property experienced a drop of 1.3 percent in home value; those living 300 to 500 feet of the foreclosed home see a drop in value of 0.6 percent.
Ellen Schloemer, the executive vice president of the Center for Responsible Lending, estimates that foreclosures would affect an estimated 91.5 million neighboring homes over the next four years.
“As the foreclosure crisis continues to worsen, the contagion is spreading,” Schloemer says. “You can’t just say those foreclosures are hurting someone else.”
Foreclosure / Short Sale / REO's Teton Valley Idaho - Jackson Hole Wyoming
Hello !
Two great foreclosure / short sale properties :
Jackson Hole Wyoming
- Rafter J
- 2287 sq ft, 4 BR , 3 Bath .35 ac
- $ 648 K
Teton Springs , Victor Idaho
- 2880 sq ft.
- 4 BR , $ Bath . 50 ac
- $ 600K
DO NOT LET THESE OPPORTUNITIES SLIP BY !
-------------------------------
Timothy S Anderson
Silver Peaks Realty
Anderson Residential and Commercial Construction Services
pH 208 390 0737
www.buytetonland.com
-
Two great foreclosure / short sale properties :
Jackson Hole Wyoming
- Rafter J
- 2287 sq ft, 4 BR , 3 Bath .35 ac
- $ 648 K
Teton Springs , Victor Idaho
- 2880 sq ft.
- 4 BR , $ Bath . 50 ac
- $ 600K
DO NOT LET THESE OPPORTUNITIES SLIP BY !
-------------------------------
Timothy S Anderson
Silver Peaks Realty
Anderson Residential and Commercial Construction Services
pH 208 390 0737
www.buytetonland.com
-
Monday, June 15, 2009
First Time Homebuyer Tax Credit / Teton Valley Idaho Real Estate - Jackson Hole Wyoming Real Estate
Senator Isakson Introduces Bill to Extend, Expand Homebuyer Tax Credit
Senator Johnny Isakson (R-GA) and 9 cosponsors have introduced S. 1230, a bill that would increase the homebuyer tax credit to $15,000 and extend it to all purchasers.
It would extend the credit past December 1, 2009 by making the new credit available on the date of enactment (whenever the bill might get signed) and for one year after the date of enactment. Unlike current law, the proposed expanded tax credit would not be refundable.
As a result, existing state-level bridge loan downpayment programs would be less available because the purchaser/taxpayer will not know his/her tax liability at the time of purchase. It is not known when this legislation might be considered, as both tax-writing committees are working solely on health reform.
In addition, the proposal has not yet been scored for revenue purposes. Housing and Urban Development Secretary has expressed concern about whether extending the credit to all purchasers would reduce the inventory of houses available for sale.
He noted that in most cases a current owner must sell another home before purchasing a new one. NAR is pleased that so many legislators have shown interest in extending and/or expanding the credit.
Senator Johnny Isakson (R-GA) and 9 cosponsors have introduced S. 1230, a bill that would increase the homebuyer tax credit to $15,000 and extend it to all purchasers.
It would extend the credit past December 1, 2009 by making the new credit available on the date of enactment (whenever the bill might get signed) and for one year after the date of enactment. Unlike current law, the proposed expanded tax credit would not be refundable.
As a result, existing state-level bridge loan downpayment programs would be less available because the purchaser/taxpayer will not know his/her tax liability at the time of purchase. It is not known when this legislation might be considered, as both tax-writing committees are working solely on health reform.
In addition, the proposal has not yet been scored for revenue purposes. Housing and Urban Development Secretary has expressed concern about whether extending the credit to all purchasers would reduce the inventory of houses available for sale.
He noted that in most cases a current owner must sell another home before purchasing a new one. NAR is pleased that so many legislators have shown interest in extending and/or expanding the credit.
Pending Home Sales Are UP / Foreclosure - Bank Owned REO - Short Sales Teton Valley Idaho - Jackson Wyoming
Pending Home Sales Up for Three Months in a Row
Record low mortgage interest rates boosted pending home sales for the third consecutive month, with some benefit now from the first-time buyer tax credit, according to the latest numbers. Lawrence Yun, NAR chief economist, said buyers are responding to very favorable market conditions.
“Housing affordability conditions have been at historic highs, but now the $8,000 first-time buyer tax credit is beginning to impact the market,” he said.
“Since first-time buyers must finalize their purchase by November 30 to get the credit, we expect greater activity in the months ahead, and that should spark more sales by repeat buyers.””
June Market Forecast
The three straight months of rising pending home sales is welcoming and encouraging.
First-time buyers are responding to the incentives of rock-bottom mortgage rates and the tax credit to pick up low- priced homes. Recent figures suggest about 45 percent of buyers have been first-timers, higher than the typical 35 to 40 percent during more normal years.
A high proportion of the transacted homes are distressed, either in foreclosure or requiring a lender approval short-sale, with deep discounted prices.
By the fourth quarter, existing home sales are projected to be about 15 percent higher compared to the comparable period the year before, if all goes as planned.
Record low mortgage interest rates boosted pending home sales for the third consecutive month, with some benefit now from the first-time buyer tax credit, according to the latest numbers. Lawrence Yun, NAR chief economist, said buyers are responding to very favorable market conditions.
“Housing affordability conditions have been at historic highs, but now the $8,000 first-time buyer tax credit is beginning to impact the market,” he said.
“Since first-time buyers must finalize their purchase by November 30 to get the credit, we expect greater activity in the months ahead, and that should spark more sales by repeat buyers.””
June Market Forecast
The three straight months of rising pending home sales is welcoming and encouraging.
First-time buyers are responding to the incentives of rock-bottom mortgage rates and the tax credit to pick up low- priced homes. Recent figures suggest about 45 percent of buyers have been first-timers, higher than the typical 35 to 40 percent during more normal years.
A high proportion of the transacted homes are distressed, either in foreclosure or requiring a lender approval short-sale, with deep discounted prices.
By the fourth quarter, existing home sales are projected to be about 15 percent higher compared to the comparable period the year before, if all goes as planned.
32 ac lot for $ 150 000 / Teton Valley Idaho - Jackson Hole Wyoming
Hello !
JUST LISTED :
32 ac lot for $ 150 000
Very Nice Subdivision in Tetonia Idaho.
Do not miss this opportunity
Call me now for details.
---------------
Sincerely - your friend and well wisher.
Timothy S Anderson
Silver Peaks Realty
Anderson Residential and Commercial Construction Services
pH 208 390 0737
www.buytetonland.com
JUST LISTED :
32 ac lot for $ 150 000
Very Nice Subdivision in Tetonia Idaho.
Do not miss this opportunity
Call me now for details.
---------------
Sincerely - your friend and well wisher.
Timothy S Anderson
Silver Peaks Realty
Anderson Residential and Commercial Construction Services
pH 208 390 0737
www.buytetonland.com
Sunday, June 14, 2009
Foreclosure Basics / Teton Valley Idaho Real Estate / Jackson Hole Wyoming Real Estate
WHAT THE HECK IS A SHORT SALE ?
Over the last several years a lot of buyers have bought homes, intending to live in them for many years, then something happened - maybe good, maybe bad, but regardless - they don't have a choice. Some owners have to move.
When most homeowners move, they sell their house. Usually, that's not a problem. For some people nowadays, it is a problem.
Because of the easy financing, rampant speculation, flipping, and sometimes fraud, home values skyrocketed most everywhere. That came to an end recently and values plummeted in some areas. Even when values are stable, sometimes there just isn't enough money in the property to pay off the mortgage, then pay all the selling costs and moving costs.
What happens then?
Default, sometimes bankruptcy, and maybe even foreclosure.
Or a short sale.
A short sale is when the lender agrees to accept a mortgage payoff that doesn't cover the outstanding loan.
Why do lenders accept short sales?
Lenders almost always lose money when they foreclose on property. In many cases, they will lose less money through a short sale than they would by foreclosing on the home and selling it as a bank-owned property.
However, there are rules.
The borrower must experience a genuine financial hardship. If this fits, call the lender. Talk to customer service or the collection department and let them know what is going on. That way, knowledge of your hardship is communicated to the lender and becomes a part of their files.
Keep your own communication log.
Eventually, you will have to document the hardship and your inability to deal with it financially by disclosing all your assets. Bank statements, stocks, bonds, tax returns, pay stubs -- the lender will want to see everything that may document that you are not hiding assets or income.
The lender will not make a commitment based solely on your hardship. You're also going to have to put your home on the market and sell it.
Once you sell the property, you have to supply additional documentation. When the property is listed, your real estate agent prepares a comparative market analysis. You're going to need that and you will need to supply a copy to the lender, along with your hardship letter, the documents mentioned above, a copy of the purchase agreement, and a "net sheet" showing how much you will net (or lose) from the sale of the home.
It may be that you actually want your real estate agent or some other professional to negotiate with your lender. If so, you need to prepare an authorization letter. That letter includes your name, property address, loan number, your representative's name, the date and your notarized signature. Your agent will know almost all of this and have the proper format.
Then your agent submits it all to your lender and...you wait.
Normally, your lender can't make the decision to accept a short sale on their own. If there is mortgage insurance, they get a say-so. Your mortgage has an investor. The investor gets a say-so.
If the deal "makes sense", they believe your hardship is genuine, and you do not own any other property -- you may get a "yes" decision. Your chances go up markedly if you have someone experienced negotiating for you.
Buying Bank Owned Properties (REO)
So you’d like to buy a bank owned property?
You’ve watched the late-night infomercials and you’re ready to do the bank “a favor” and take a problem off their hands. Plus, you expect to make "a killing" in the process. Sounds great and it might just happen, but first you should take a look at some facts and get prepared.
REO vs. Foreclosure
An REO (Real Estate Owned) is a property that goes back to the mortgage company after an unsuccessful foreclosure auction. You see, most foreclosure auctions do not even result in bids.
After all, if there was enough equity in the property to satisfy the loan, the owner would have probably sold the property and paid off the bank. That is why the property ends up at a foreclosure or trustee sale.
Foreclosure sales begin with a minimum bid that includes the loan balance, any accrued interest, plus attorney's fees and any costs association with the foreclosure process. In order to bid at a foreclosure auction, you must have a cashier's check in your hand for the full amount of your bid. If you are the successful bidder, you receive the property in "as is" condition, which may include someone still living in the property. There may also be other liens against the property.
Since what is owed to the bank is almost always more than what the property is worth, very few foreclosure auctions result in a successful sale. Then the property "reverts" to the bank. It becomes an REO, or "real estate owned" property.
REO Properties For Sale
The bank now owns the property and the mortgage loan no longer exists. The bank will handle the eviction, if necessary, and may do some repairs. They will negotiate with the IRS for removal of tax liens and pay off any homeowner’s association dues. As a purchaser of an REO property, the buyer will receive a title insurance policy and the opportunity to investigate the property.
A bank owned property might not be a great bargain.
Do your homework before making an offer. Make sure that the price you pay (if you’re successful) is comparable to other homes in the neighborhood. Consider the costs of renovation, including time to complete them. Don’t get caught up in a ‘bidding war’ and pay over market value. It’s an old myth that “foreclosures” are a bargain.
How Banks Sell REO's
Each bank/lender works a little differently, but they all have similar goals. They want to get the best price possible and have no interest in "dumping" real estate cheaply. Generally, banks have an entire department set up to manage their REO inventory.
Once you make an offer to purchase, banks generally present a "counter-offer." It may be at a higher price than you expect, but they have to demonstrate to investors, shareholders and auditors that they attempted to get the highest price possible. You should plan to counter the counter-offer.
Your offer or counter-offer will probably have to be reviewed and approved by several individuals and companies. Even once an offer is accepted, the bank may insert wording like “..subject to corporate approval with 5 days."
Property Condition
Banks always want to sell a property in "as is" condition. Most will provide a Section 1 pest certification, but not unless you include it in your offer and negotiate the point. They will allow you to get all the inspections you want (at your expense), but they may not agree to do any repairs.
Your offer should include an inspection contingency period that allows you to terminate the sale if the inspections reveal unanticipated damages that the bank will not correct.
Even though you agreed to “as is," always give the bank another opportunity to make repairs or give you a credit after you’ve completed your inspections. Sometimes they’ll re-negotiate to save the transaction instead of putting the property back on the market, but don’t take it for granted.
Banks do not want to see a lot of proprietary disclosures; they are exempt from the California Seller’s Transfer Disclosure Statement (TDS-14). If there are real estate agents involved, either representing you or the bank, those agents are required to provide you their disclosure statements.
Most banks will not provide financing on their REOs but it doesn’t hurt to ask. Especially if the property has extensive damage and you are purchasing it "as is."
Making an Offer
Before making an offer, have your agent contact the the listing agent and ask the following:
Are there any inspection reports?
What work has the bank agreed to?
Is there a special "as is" form?
How long does it take the bank to accept an offer?
How does your agent deliver the offer?
Offers are usually FAXED to the bank. The listing agent needs your originals. There is no formal presentation. Keep in mind: nothing happens evenings and weekends (banks are closed)
Since there is no face-to-face presentation to the bank, provide the listing agent with a pre-qualification or better yet, a pre-approval letter and buyer biography. Make your offer easy to accept.
Hopefully these tips will manage your expectations. Remember that REO's sell at pretty close to full market value and are not the deals presented on late night television.
Over the last several years a lot of buyers have bought homes, intending to live in them for many years, then something happened - maybe good, maybe bad, but regardless - they don't have a choice. Some owners have to move.
When most homeowners move, they sell their house. Usually, that's not a problem. For some people nowadays, it is a problem.
Because of the easy financing, rampant speculation, flipping, and sometimes fraud, home values skyrocketed most everywhere. That came to an end recently and values plummeted in some areas. Even when values are stable, sometimes there just isn't enough money in the property to pay off the mortgage, then pay all the selling costs and moving costs.
What happens then?
Default, sometimes bankruptcy, and maybe even foreclosure.
Or a short sale.
A short sale is when the lender agrees to accept a mortgage payoff that doesn't cover the outstanding loan.
Why do lenders accept short sales?
Lenders almost always lose money when they foreclose on property. In many cases, they will lose less money through a short sale than they would by foreclosing on the home and selling it as a bank-owned property.
However, there are rules.
The borrower must experience a genuine financial hardship. If this fits, call the lender. Talk to customer service or the collection department and let them know what is going on. That way, knowledge of your hardship is communicated to the lender and becomes a part of their files.
Keep your own communication log.
Eventually, you will have to document the hardship and your inability to deal with it financially by disclosing all your assets. Bank statements, stocks, bonds, tax returns, pay stubs -- the lender will want to see everything that may document that you are not hiding assets or income.
The lender will not make a commitment based solely on your hardship. You're also going to have to put your home on the market and sell it.
Once you sell the property, you have to supply additional documentation. When the property is listed, your real estate agent prepares a comparative market analysis. You're going to need that and you will need to supply a copy to the lender, along with your hardship letter, the documents mentioned above, a copy of the purchase agreement, and a "net sheet" showing how much you will net (or lose) from the sale of the home.
It may be that you actually want your real estate agent or some other professional to negotiate with your lender. If so, you need to prepare an authorization letter. That letter includes your name, property address, loan number, your representative's name, the date and your notarized signature. Your agent will know almost all of this and have the proper format.
Then your agent submits it all to your lender and...you wait.
Normally, your lender can't make the decision to accept a short sale on their own. If there is mortgage insurance, they get a say-so. Your mortgage has an investor. The investor gets a say-so.
If the deal "makes sense", they believe your hardship is genuine, and you do not own any other property -- you may get a "yes" decision. Your chances go up markedly if you have someone experienced negotiating for you.
Buying Bank Owned Properties (REO)
So you’d like to buy a bank owned property?
You’ve watched the late-night infomercials and you’re ready to do the bank “a favor” and take a problem off their hands. Plus, you expect to make "a killing" in the process. Sounds great and it might just happen, but first you should take a look at some facts and get prepared.
REO vs. Foreclosure
An REO (Real Estate Owned) is a property that goes back to the mortgage company after an unsuccessful foreclosure auction. You see, most foreclosure auctions do not even result in bids.
After all, if there was enough equity in the property to satisfy the loan, the owner would have probably sold the property and paid off the bank. That is why the property ends up at a foreclosure or trustee sale.
Foreclosure sales begin with a minimum bid that includes the loan balance, any accrued interest, plus attorney's fees and any costs association with the foreclosure process. In order to bid at a foreclosure auction, you must have a cashier's check in your hand for the full amount of your bid. If you are the successful bidder, you receive the property in "as is" condition, which may include someone still living in the property. There may also be other liens against the property.
Since what is owed to the bank is almost always more than what the property is worth, very few foreclosure auctions result in a successful sale. Then the property "reverts" to the bank. It becomes an REO, or "real estate owned" property.
REO Properties For Sale
The bank now owns the property and the mortgage loan no longer exists. The bank will handle the eviction, if necessary, and may do some repairs. They will negotiate with the IRS for removal of tax liens and pay off any homeowner’s association dues. As a purchaser of an REO property, the buyer will receive a title insurance policy and the opportunity to investigate the property.
A bank owned property might not be a great bargain.
Do your homework before making an offer. Make sure that the price you pay (if you’re successful) is comparable to other homes in the neighborhood. Consider the costs of renovation, including time to complete them. Don’t get caught up in a ‘bidding war’ and pay over market value. It’s an old myth that “foreclosures” are a bargain.
How Banks Sell REO's
Each bank/lender works a little differently, but they all have similar goals. They want to get the best price possible and have no interest in "dumping" real estate cheaply. Generally, banks have an entire department set up to manage their REO inventory.
Once you make an offer to purchase, banks generally present a "counter-offer." It may be at a higher price than you expect, but they have to demonstrate to investors, shareholders and auditors that they attempted to get the highest price possible. You should plan to counter the counter-offer.
Your offer or counter-offer will probably have to be reviewed and approved by several individuals and companies. Even once an offer is accepted, the bank may insert wording like “..subject to corporate approval with 5 days."
Property Condition
Banks always want to sell a property in "as is" condition. Most will provide a Section 1 pest certification, but not unless you include it in your offer and negotiate the point. They will allow you to get all the inspections you want (at your expense), but they may not agree to do any repairs.
Your offer should include an inspection contingency period that allows you to terminate the sale if the inspections reveal unanticipated damages that the bank will not correct.
Even though you agreed to “as is," always give the bank another opportunity to make repairs or give you a credit after you’ve completed your inspections. Sometimes they’ll re-negotiate to save the transaction instead of putting the property back on the market, but don’t take it for granted.
Banks do not want to see a lot of proprietary disclosures; they are exempt from the California Seller’s Transfer Disclosure Statement (TDS-14). If there are real estate agents involved, either representing you or the bank, those agents are required to provide you their disclosure statements.
Most banks will not provide financing on their REOs but it doesn’t hurt to ask. Especially if the property has extensive damage and you are purchasing it "as is."
Making an Offer
Before making an offer, have your agent contact the the listing agent and ask the following:
Are there any inspection reports?
What work has the bank agreed to?
Is there a special "as is" form?
How long does it take the bank to accept an offer?
How does your agent deliver the offer?
Offers are usually FAXED to the bank. The listing agent needs your originals. There is no formal presentation. Keep in mind: nothing happens evenings and weekends (banks are closed)
Since there is no face-to-face presentation to the bank, provide the listing agent with a pre-qualification or better yet, a pre-approval letter and buyer biography. Make your offer easy to accept.
Hopefully these tips will manage your expectations. Remember that REO's sell at pretty close to full market value and are not the deals presented on late night television.
Driggs Idaho Real Estate / Teton Valley Idaho Real Estate / Jackson Hole Wyoming Real Estate
HIGHLY DESIRABLE SUBDIVISION
UNBELIEVABLE !!!!!
NEW !!!! WELL BUILT !!!
STICK BUILT HOMES / LOWEST VALLEY WIDE SALES PRICES !!!!!
- 1633 sq ft / 3BR / 2 Bath
Full unfinished basement
$ 180 000 !!!!!!!!!
- 1791 sq ft 3BR / 2 Bath
Full unfinished basement
$ 199 999 !!!!!
DO NOT LET THIS OPPORTUNITY GO BY !!!
BANK APPROVED SALE.
CALL Ph 208 390 0737 FOR DETAILS
-----------------------
Timothy S Anderson
Silver Peaks Realty
Anderson Residential and Commercial
Construction Services
pH 208 390 0737
www.buytetonland.com
-----------------------
Timothy S Anderson
Silver Peaks Realty
Anderson Residential and Commercial
Construction Services
pH 208 390 0737
www.buytetonland.com
BANK APPROVED SHORT SALE / PRE MARKETING RELEASE !!! / Foreclosure / Short Sale / REO Teton Valley Idaho - Jackson Hole Wyoming
PRE MARKETING BANK REO APPROVED SALE
UNBELIEVABLE !!!!!
NEW !!!! WELL BUILT !!!
STICK BUILT HOMES / LOWEST VALLEY WIDE SALES PRICES !!!!!
- 1633 sq ft / 3BR / 2 Bath
Full unfinished basement
$ 180 000 !!!!!!!!!
- 1791 sq ft 3BR / 2 Bath
Full unfinished basement
$ 199 999 !!!!!
DO NOT LET THIS OPPORTUNITY GO BY !!!
BANK APPROVED SALE.
CALL Ph 208 390 0737 FOR DETAILS
-----------------------
Timothy S Anderson
Silver Peaks Realty
Anderson Residential and Commercial
Construction Services
pH 208 390 0737
www.buytetonland.com
Saturday, June 13, 2009
Short Sale Primer / Foreclosure / Short Sales / bank owned REO - Teton Valley Idaho - Jackson Wyoming
What the Heck Is a Short Sale?
Over the last several years a lot of buyers have bought homes, intending to live in them for many years, then something happened - maybe good, maybe bad, but regardless - they don't have a choice. Some owners have to move.
When most homeowners move, they sell their house. Usually, that's not a problem. For some people nowadays, it is a problem.
Because of the easy financing, rampant speculation, flipping, and sometimes fraud, home values skyrocketed most everywhere. That came to an end recently and values plummeted in some areas. Even when values are stable, sometimes there just isn't enough money in the property to pay off the mortgage, then pay all the selling costs and moving costs.
What happens then?
Default, sometimes bankruptcy, and maybe even foreclosure.
Or a short sale.
A short sale is when the lender agrees to accept a mortgage payoff that doesn't cover the outstanding loan.
Why do lenders accept short sales? Lenders almost always lose money when they foreclose on property. In many cases, they will lose less money through a short sale than they would by foreclosing on the home and selling it as a bank-owned property.
However, there are rules.
The borrower must experience a genuine financial hardship. If this fits, call the lender. Talk to customer service or the collection department and let them know what is going on. That way, knowledge of your hardship is communicated to the lender and becomes a part of their files.
Keep your own communication log.
Eventually, you will have to document the hardship and your inability to deal with it financially by disclosing all your assets. Bank statements, stocks, bonds, tax returns, pay stubs -- the lender will want to see everything that may document that you are not hiding assets or income.
The lender will not make a commitment based solely on your hardship. You're also going to have to put your home on the market and sell it.
Once you sell the property, you have to supply additional documentation. When the property is listed, your real estate agent prepares a comparative market analysis. You're going to need that and you will need to supply a copy to the lender, along with your hardship letter, the documents mentioned above, a copy of the purchase agreement, and a "net sheet" showing how much you will net (or lose) from the sale of the home.
It may be that you actually want your real estate agent or some other professional to negotiate with your lender. If so, you need to prepare an authorization letter. That letter includes your name, property address, loan number, your representative's name, the date and your notarized signature. Your agent will know almost all of this and have the proper format.
Then your agent submits it all to your lender and...you wait.
Normally, your lender can't make the decision to accept a short sale on their own. If there is mortgage insurance, they get a say-so. Your mortgage has an investor. The investor gets a say-so.
If the deal "makes sense", they believe your hardship is genuine, and you do not own any other property -- you may get a "yes" decision. Your chances go up markedly if you have someone experienced negotiating for you.
-----------------------------------------------
Call me for complete list of Foreclosure/ REO / Short Sale Properties
Timothy S Anderson
Silver Peaks Realty
Anderson Residential and Commercial Construction Services
pH 208 390 0737
REO - Bank Owned Property Primer Foreclosure / Short Sale / REO Properties Teton Valley Idaho - Jackson Hole Wyoming
REO Properties
Real Estate Owned. Property which is in the possession of a lender as a result of foreclosure or forfeiture.
Buying Bank Owned Properties (REO)
So you’d like to buy a bank owned property?
You’ve watched the late-night infomercials and you’re ready to do the bank “a favor” and take a problem off their hands. Plus, you expect to make "a killing" in the process. Sounds great and it might just happen, but first you should take a look at some facts and get prepared.
REO vs. Foreclosure
An REO (Real Estate Owned) is a property that goes back to the mortgage company after an unsuccessful foreclosure auction. You see, most foreclosure auctions do not even result in bids. After all, if there was enough equity in the property to satisfy the loan, the owner would have probably sold the property and paid off the bank. That is why the property ends up at a foreclosure or trustee sale.
Foreclosure sales begin with a minimum bid that includes the loan balance, any accrued interest, plus attorney's fees and any costs association with the foreclosure process. In order to bid at a foreclosure auction, you must have a cashier's check in your hand for the full amount of your bid. If you are the successful bidder, you receive the property in "as is" condition, which may include someone still living in the property. There may also be other liens against the property.
Since what is owed to the bank is almost always more than what the property is worth, very few foreclosure auctions result in a successful sale. Then the property "reverts" to the bank. It becomes an REO, or "real estate owned" property.
REO Properties For Sale
The bank now owns the property and the mortgage loan no longer exists. The bank will handle the eviction, if necessary, and may do some repairs. They will negotiate with the IRS for removal of tax liens and pay off any homeowner’s association dues. As a purchaser of an REO property, the buyer will receive a title insurance policy and the opportunity to investigate the property.
A bank owned property might not be a great bargain. Do your homework before making an offer. Make sure that the price you pay (if you’re successful) is comparable to other homes in the neighborhood. Consider the costs of renovation, including time to complete them. Don’t get caught up in a ‘bidding war’ and pay over market value. It’s an old myth that “foreclosures” are a bargain.
How Banks Sell REO's
Each bank/lender works a little differently, but they all have similar goals. They want to get the best price possible and have no interest in "dumping" real estate cheaply. Generally, banks have an entire department set up to manage their REO inventory.
Once you make an offer to purchase, banks generally present a "counter-offer." It may be at a higher price than you expect, but they have to demonstrate to investors, shareholders and auditors that they attempted to get the highest price possible. You should plan to counter the counter-offer.
Your offer or counter-offer will probably have to be reviewed and approved by several individuals and companies. Even once an offer is accepted, the bank may insert wording like “..subject to corporate approval with 5 days."
Property Condition
Banks always want to sell a property in "as is" condition. Most will provide a Section 1 pest certification, but not unless you include it in your offer and negotiate the point. They will allow you to get all the inspections you want (at your expense), but they may not agree to do any repairs.
Your offer should include an inspection contingency period that allows you to terminate the sale if the inspections reveal unanticipated damages that the bank will not correct.
Even though you agreed to “as is," always give the bank another opportunity to make repairs or give you a credit after you’ve completed your inspections. Sometimes they’ll re-negotiate to save the transaction instead of putting the property back on the market, but don’t take it for granted.
Banks do not want to see a lot of proprietary disclosures; they are exempt from the California Seller’s Transfer Disclosure Statement (TDS-14). If there are real estate agents involved, either representing you or the bank, those agents are required to provide you their disclosure statements.
Most banks will not provide financing on their REOs but it doesn’t hurt to ask. Especially if the property has extensive damage and you are purchasing it "as is."
Making an Offer
Before making an offer, have your agent contact the the listing agent and ask the following:
Are there any inspection reports?
What work has the bank agreed to?
Is there a special "as is" form?
How long does it take the bank to accept an offer?
How does your agent deliver the offer?
Offers are usually FAXED to the bank. The listing agent needs your originals. There is no formal presentation. Keep in mind: nothing happens evenings and weekends (banks are closed)
Since there is no face-to-face presentation to the bank, provide the listing agent with a pre-qualification or better yet, a pre-approval letter and buyer biography.
Make your offer easy to accept.
Hopefully these tips will manage your expectations. Remember that REO's sell at pretty close to full market value and are not the deals presented on late night television.
------------------------------------------------------------------------------
Call me for complete FREE list of Foreclosure / REO / Short Sale Properties
Timothy S Anderson
Silver Peaks Realty
Anderson Residential and Commercial Construction Services
pH 208 390 0737
www.buytetonland.com
Real Estate Owned. Property which is in the possession of a lender as a result of foreclosure or forfeiture.
Buying Bank Owned Properties (REO)
So you’d like to buy a bank owned property?
You’ve watched the late-night infomercials and you’re ready to do the bank “a favor” and take a problem off their hands. Plus, you expect to make "a killing" in the process. Sounds great and it might just happen, but first you should take a look at some facts and get prepared.
REO vs. Foreclosure
An REO (Real Estate Owned) is a property that goes back to the mortgage company after an unsuccessful foreclosure auction. You see, most foreclosure auctions do not even result in bids. After all, if there was enough equity in the property to satisfy the loan, the owner would have probably sold the property and paid off the bank. That is why the property ends up at a foreclosure or trustee sale.
Foreclosure sales begin with a minimum bid that includes the loan balance, any accrued interest, plus attorney's fees and any costs association with the foreclosure process. In order to bid at a foreclosure auction, you must have a cashier's check in your hand for the full amount of your bid. If you are the successful bidder, you receive the property in "as is" condition, which may include someone still living in the property. There may also be other liens against the property.
Since what is owed to the bank is almost always more than what the property is worth, very few foreclosure auctions result in a successful sale. Then the property "reverts" to the bank. It becomes an REO, or "real estate owned" property.
REO Properties For Sale
The bank now owns the property and the mortgage loan no longer exists. The bank will handle the eviction, if necessary, and may do some repairs. They will negotiate with the IRS for removal of tax liens and pay off any homeowner’s association dues. As a purchaser of an REO property, the buyer will receive a title insurance policy and the opportunity to investigate the property.
A bank owned property might not be a great bargain. Do your homework before making an offer. Make sure that the price you pay (if you’re successful) is comparable to other homes in the neighborhood. Consider the costs of renovation, including time to complete them. Don’t get caught up in a ‘bidding war’ and pay over market value. It’s an old myth that “foreclosures” are a bargain.
How Banks Sell REO's
Each bank/lender works a little differently, but they all have similar goals. They want to get the best price possible and have no interest in "dumping" real estate cheaply. Generally, banks have an entire department set up to manage their REO inventory.
Once you make an offer to purchase, banks generally present a "counter-offer." It may be at a higher price than you expect, but they have to demonstrate to investors, shareholders and auditors that they attempted to get the highest price possible. You should plan to counter the counter-offer.
Your offer or counter-offer will probably have to be reviewed and approved by several individuals and companies. Even once an offer is accepted, the bank may insert wording like “..subject to corporate approval with 5 days."
Property Condition
Banks always want to sell a property in "as is" condition. Most will provide a Section 1 pest certification, but not unless you include it in your offer and negotiate the point. They will allow you to get all the inspections you want (at your expense), but they may not agree to do any repairs.
Your offer should include an inspection contingency period that allows you to terminate the sale if the inspections reveal unanticipated damages that the bank will not correct.
Even though you agreed to “as is," always give the bank another opportunity to make repairs or give you a credit after you’ve completed your inspections. Sometimes they’ll re-negotiate to save the transaction instead of putting the property back on the market, but don’t take it for granted.
Banks do not want to see a lot of proprietary disclosures; they are exempt from the California Seller’s Transfer Disclosure Statement (TDS-14). If there are real estate agents involved, either representing you or the bank, those agents are required to provide you their disclosure statements.
Most banks will not provide financing on their REOs but it doesn’t hurt to ask. Especially if the property has extensive damage and you are purchasing it "as is."
Making an Offer
Before making an offer, have your agent contact the the listing agent and ask the following:
Are there any inspection reports?
What work has the bank agreed to?
Is there a special "as is" form?
How long does it take the bank to accept an offer?
How does your agent deliver the offer?
Offers are usually FAXED to the bank. The listing agent needs your originals. There is no formal presentation. Keep in mind: nothing happens evenings and weekends (banks are closed)
Since there is no face-to-face presentation to the bank, provide the listing agent with a pre-qualification or better yet, a pre-approval letter and buyer biography.
Make your offer easy to accept.
Hopefully these tips will manage your expectations. Remember that REO's sell at pretty close to full market value and are not the deals presented on late night television.
------------------------------------------------------------------------------
Call me for complete FREE list of Foreclosure / REO / Short Sale Properties
Timothy S Anderson
Silver Peaks Realty
Anderson Residential and Commercial Construction Services
pH 208 390 0737
www.buytetonland.com
Friday, June 12, 2009
Go Mortgage Hunting
3 Good Places to Hunt for a Mortgage
Getting a mortgage isn't easy these days, particularly since many banks have tightened crediting, which is ultimately keeping some buyers out. More borrowers are turning online to shop for a mortgage, in which they can shop anonymously and still get accurate rates.
According to a recent article on CNNMoney.com, here are three Web sites that will get mortgage-shoppers started (these sites act as a referral source and borrowers will still need to close with a bank or mortgage broker).
Zillow.com: The best thing about this site is the ability to read reports of other people’s experiences with a lender.
MortgageMarvel.com: This site updates mortgage rates in real time, so it’s a good place to find deals.
LendingTree.com: This site matches a potential borrower with four lenders who will offer their best rates. The downside is that lenders will pull credit scores, which could hurt a borrower’s credit.
Regardless on what bank or mortgage broker borrowers use for their mortgage, they should expect to pay an average of $3,118 in fees, according to the article. Source: CNNMoney.com, Beth Braverman (06/09/2009)
Getting a mortgage isn't easy these days, particularly since many banks have tightened crediting, which is ultimately keeping some buyers out. More borrowers are turning online to shop for a mortgage, in which they can shop anonymously and still get accurate rates.
According to a recent article on CNNMoney.com, here are three Web sites that will get mortgage-shoppers started (these sites act as a referral source and borrowers will still need to close with a bank or mortgage broker).
Zillow.com: The best thing about this site is the ability to read reports of other people’s experiences with a lender.
MortgageMarvel.com: This site updates mortgage rates in real time, so it’s a good place to find deals.
LendingTree.com: This site matches a potential borrower with four lenders who will offer their best rates. The downside is that lenders will pull credit scores, which could hurt a borrower’s credit.
Regardless on what bank or mortgage broker borrowers use for their mortgage, they should expect to pay an average of $3,118 in fees, according to the article. Source: CNNMoney.com, Beth Braverman (06/09/2009)
Foreclosure/ Short Sales / Bank REO Teton Valley Idaho - Jackson Hole Wyoming
Foreclosures Won't End Soon
Analysts Predict Rising unemployment and falling home prices is a treacherous combination that is dragging people with excellent credit into the foreclosure morass.
The jobless rate of 4.4 percent in April of people with bachelor’s degrees isn’t high compared with the overall unemployment rate, but it is more than double what it was a year ago.Foreclosures are unlikely to peak until 2011, says David Crowe, chief economist of the National Association of Home Builders.
He says foreclosures typically hit a high after unemployment does, and he believes the employment situation won’t turn around until late this year.
Then rising employment will drive up interest rates, he fears, causing more resets of adjustable rate mortgages, leading to more foreclosures.Credit Suisse echoes Crowe’s concerns, predicting that scheduled resets will hit a high in 2010 and rates will stay high until 2012.
Source: Business Week, Peter Coy (06/15/2009)
Analysts Predict Rising unemployment and falling home prices is a treacherous combination that is dragging people with excellent credit into the foreclosure morass.
The jobless rate of 4.4 percent in April of people with bachelor’s degrees isn’t high compared with the overall unemployment rate, but it is more than double what it was a year ago.Foreclosures are unlikely to peak until 2011, says David Crowe, chief economist of the National Association of Home Builders.
He says foreclosures typically hit a high after unemployment does, and he believes the employment situation won’t turn around until late this year.
Then rising employment will drive up interest rates, he fears, causing more resets of adjustable rate mortgages, leading to more foreclosures.Credit Suisse echoes Crowe’s concerns, predicting that scheduled resets will hit a high in 2010 and rates will stay high until 2012.
Source: Business Week, Peter Coy (06/15/2009)
Thursday, June 11, 2009
First Time Homebuyers Tax Credit / Forclosure / Short Sales / REO Teton Valley Idaho - Jackson Hole Wyoming
First-time Home Buyers Grabbing Houses and Tax Credit
By Kevin Collison RISMEDIA, June 4, 2009-(MCT)-Generation Y is getting jazzed about a new $8,000 federal tax credit for first-time home buyers-jumping at the opportunity to move up and out of their rentals.
"The last 90 days I've seen it go crazy," Kevin Foster, a real estate agent with Reece & Nichols in Lee's Summit, said Tuesday. "Every conference room has been full with agents working on offers, and many are people in their 20s."
Peter Abbey, 26, and his girlfriend, Abigail Barnett, 27, were among them.
Abbey, bar manager at Avenue Bistro in Kansas City, and Barnett, a hospital administrative assistant, had been saving to buy a house the past couple of years but weren't quite there yet. Until Congress approved the expanded tax credit in February.
Now they're leaving their rented home in the city for their own place in Roeland Park.
"We were saving money and waiting for the right time, and that definitely helped give us a push," Abbey said. "We were able to buy a little bit earlier because of the government tax credit."
The Kansas City Regional Association of Realtors® said April sales of new and existing homes were up 10% from March, with almost 2,500 homes sold. "We're seeing a lot of first-time buyers back in the market again," said Chris Collins of Keller-Williams and president of the association. "The tax credit along with historically low mortgage rates is affecting the market."
The tax credit was part of President Barack Obama's $787 billion American Recovery and Reinvestment Act. It's available to people buying their first home in 2009 as long as the purchase is completed by Dec. 1.
Because of the one- to two-month lag between a contract and a done deal, many home buyers are making offers on homes now.
As opposed to a $7,500 tax credit available in 2008, the latest incentive doesn't have to be repaid if the taxpayer remains in the home for at least three years.
At the national level, a report Tuesday said pending home sales in April were up 6.7% from March, the biggest monthly increase since October 2001, according to a seasonally adjusted index of sales contracts kept by the National Association of Realtors®. Continue reading on RISMedia.com...
By Kevin Collison RISMEDIA, June 4, 2009-(MCT)-Generation Y is getting jazzed about a new $8,000 federal tax credit for first-time home buyers-jumping at the opportunity to move up and out of their rentals.
"The last 90 days I've seen it go crazy," Kevin Foster, a real estate agent with Reece & Nichols in Lee's Summit, said Tuesday. "Every conference room has been full with agents working on offers, and many are people in their 20s."
Peter Abbey, 26, and his girlfriend, Abigail Barnett, 27, were among them.
Abbey, bar manager at Avenue Bistro in Kansas City, and Barnett, a hospital administrative assistant, had been saving to buy a house the past couple of years but weren't quite there yet. Until Congress approved the expanded tax credit in February.
Now they're leaving their rented home in the city for their own place in Roeland Park.
"We were saving money and waiting for the right time, and that definitely helped give us a push," Abbey said. "We were able to buy a little bit earlier because of the government tax credit."
The Kansas City Regional Association of Realtors® said April sales of new and existing homes were up 10% from March, with almost 2,500 homes sold. "We're seeing a lot of first-time buyers back in the market again," said Chris Collins of Keller-Williams and president of the association. "The tax credit along with historically low mortgage rates is affecting the market."
The tax credit was part of President Barack Obama's $787 billion American Recovery and Reinvestment Act. It's available to people buying their first home in 2009 as long as the purchase is completed by Dec. 1.
Because of the one- to two-month lag between a contract and a done deal, many home buyers are making offers on homes now.
As opposed to a $7,500 tax credit available in 2008, the latest incentive doesn't have to be repaid if the taxpayer remains in the home for at least three years.
At the national level, a report Tuesday said pending home sales in April were up 6.7% from March, the biggest monthly increase since October 2001, according to a seasonally adjusted index of sales contracts kept by the National Association of Realtors®. Continue reading on RISMedia.com...
Wednesday, June 10, 2009
First Time Homebuyers Tax Credit / Foreclosure / Short Sales / Bank REO's Teton Valley Idaho - Jackson Hole Wyoming
Industry Lobbies to Extend Buyer Tax Credit
Key organizations in the housing industry are urging Congress to increase the $8,000 home buyer credit to $15,000 and make it available to all home buyers instead of just those buying a first home.
"What is being billed as a recovery is not showing up in the cash register yet," says Richard A. Smith, CEO of Realogy Corp. and a member of the Business Roundtable, which is orchestrating the lobbying effort.
The Roundtable’s campaign is also pushing Congress to make permanent expanded limits for loans eligible for government purchase or backing. The limit is now $729,750 in high-cost housing markets.
Key organizations in the housing industry are urging Congress to increase the $8,000 home buyer credit to $15,000 and make it available to all home buyers instead of just those buying a first home.
"What is being billed as a recovery is not showing up in the cash register yet," says Richard A. Smith, CEO of Realogy Corp. and a member of the Business Roundtable, which is orchestrating the lobbying effort.
The Roundtable’s campaign is also pushing Congress to make permanent expanded limits for loans eligible for government purchase or backing. The limit is now $729,750 in high-cost housing markets.
Commercial Foreclosure / Short Sales / Bank REO Teton Valley Idaho - Jackson Hole Wyoming
Relief for Commercial Sector Seems Possible
With hundreds of billions of dollars in maturing commercial property loans looming on the horizon, the Treasury Department may issue rules that will make it easier for developers, investors, and their loan servicers to restructure debt.
The Treasury is considering guidance that would allow servicers to start a dialogue about ways to avoid defaults and foreclosures sooner, possibly at least two years before a loan's maturity date. Such guidance would allow loan-modification discussions to take place without triggering tax consequences.
Of concern is $154.5 billion of commercial mortgage-backed securities loans coming due between now and 2012, about 66 percent of which will likely not qualify for refinancing.
With hundreds of billions of dollars in maturing commercial property loans looming on the horizon, the Treasury Department may issue rules that will make it easier for developers, investors, and their loan servicers to restructure debt.
The Treasury is considering guidance that would allow servicers to start a dialogue about ways to avoid defaults and foreclosures sooner, possibly at least two years before a loan's maturity date. Such guidance would allow loan-modification discussions to take place without triggering tax consequences.
Of concern is $154.5 billion of commercial mortgage-backed securities loans coming due between now and 2012, about 66 percent of which will likely not qualify for refinancing.
Foreclosure / Short Sale / Bank REO Properties Teton Valley Idaho - Jackson Hole Wyoming
ZipRealty Says Housing Inventories Are Down
The inventory of homes for sale in 28 major metropolitan areas served by ZipRealty Inc., was down 3.9 percent at the end of May.
The ZipRealty data is compiled from local multiple-listing services where the firm operates and doesn’t include New York City.
It also doesn’t include many of the foreclosed homes owned by banks.Compared with a year ago, the May inventory was down 24 percent.
Historically, inventories have been flat between April and May, according to Zelman & Associates research firm.Housing economist Thomas Lawler said the decline in inventory combined with slow housing starts "indicates that home prices in many parts of the country could be nearing a bottom."
The inventory of homes for sale in 28 major metropolitan areas served by ZipRealty Inc., was down 3.9 percent at the end of May.
The ZipRealty data is compiled from local multiple-listing services where the firm operates and doesn’t include New York City.
It also doesn’t include many of the foreclosed homes owned by banks.Compared with a year ago, the May inventory was down 24 percent.
Historically, inventories have been flat between April and May, according to Zelman & Associates research firm.Housing economist Thomas Lawler said the decline in inventory combined with slow housing starts "indicates that home prices in many parts of the country could be nearing a bottom."
Tuesday, June 9, 2009
Foreclosure / Short Sale / REO Teton Valley Idaho - Jackson Hole Wyoming
Hello !
New short sale listing Driggs Idaho Ski Hill Road corridor :
Spectacular three story town home. Located just outside Driggs Idaho on popular Ski Hill Road corridor.
Located on main access to major ski resort Grand Targhee Ski Area.
Close to golf, wilderness, snowmobile access, hiking, big game hunting and Grand Targhee Ski Area.
This home is well maintained. Priced to sell and positioned for major price appreciation with rebounding real estate marketPrivate
Property subject to short sale approval by lender.
call 208 390 0737 E on Ski Hill Road to Stoneridge, enter subdivision road, unit # 23
Monday, June 8, 2009
Foreclosure / Short Sale / REO Teton Valley Idaho - Jackson Wyoming
New Law to Protect Rental Tenants When Home is in Foreclosure
S. 896, the "Helping Families Save Their Homes Act of 2009", which became law on May 20, 2009, included provisions to protect tenants from eviction as a consequence of a foreclosure affecting the property being rented.
Many examples were seen of families living in rental housing throughout the United States who were evicted without any prior notice when the home where they had lived was foreclosed upon. Much of the time, the rental family had no idea the home was in delinquency or subject to foreclosure until their eviction.
The new law requires tenants be given 90-days notice prior to having to vacate, and allows them to stay through the remainder of their lease, if the home will continue to be a rental property.
S. 896, the "Helping Families Save Their Homes Act of 2009", which became law on May 20, 2009, included provisions to protect tenants from eviction as a consequence of a foreclosure affecting the property being rented.
Many examples were seen of families living in rental housing throughout the United States who were evicted without any prior notice when the home where they had lived was foreclosed upon. Much of the time, the rental family had no idea the home was in delinquency or subject to foreclosure until their eviction.
The new law requires tenants be given 90-days notice prior to having to vacate, and allows them to stay through the remainder of their lease, if the home will continue to be a rental property.
Foreclosure / Short Sale Property Teton Valley Idaho - Jackson Hole Wyoming
Too Early to Call Housing Bottom
Housing research organization IHS Global Insight estimates that the average U.S. home is undervalued by 12.2 percent, and many previously pricey communities are undervalued by considerably more.
A recent study released by IHS used home prices, interest rates, area incomes, population density, and historic premiums and discounts to analyze housing values.
It examined 330 markets and found homes are underpriced in 248 of them.Despite the high percentage of undervalued areas, IHS says "it is too early to call a bottoming," as "job losses continue, housing inventories remain elevated, and consumers remain wary in light of economic uncertainty.
"Here are the 10 most undervalued areas:
1. Vero Beach, Fla., -42.5 percent
2. Houma, La., -41.4 percent
3. Las Vegas, -40.9 percent
4. Merced, Calif., -40.1 percent
5. Cape Coral, Fla., -39.1 percent
6. Houston, -36.9 percent
7. Midland, Tex., -34.8 percent
8. Lafayette, La., -34.4 percent
9. Vallejo, Calif., -34.3 percent
10. Stockton, Calif., -34.3 percent
Source: CNNMoney.com, Les Christie (06/04/2009)
Housing research organization IHS Global Insight estimates that the average U.S. home is undervalued by 12.2 percent, and many previously pricey communities are undervalued by considerably more.
A recent study released by IHS used home prices, interest rates, area incomes, population density, and historic premiums and discounts to analyze housing values.
It examined 330 markets and found homes are underpriced in 248 of them.Despite the high percentage of undervalued areas, IHS says "it is too early to call a bottoming," as "job losses continue, housing inventories remain elevated, and consumers remain wary in light of economic uncertainty.
"Here are the 10 most undervalued areas:
1. Vero Beach, Fla., -42.5 percent
2. Houma, La., -41.4 percent
3. Las Vegas, -40.9 percent
4. Merced, Calif., -40.1 percent
5. Cape Coral, Fla., -39.1 percent
6. Houston, -36.9 percent
7. Midland, Tex., -34.8 percent
8. Lafayette, La., -34.4 percent
9. Vallejo, Calif., -34.3 percent
10. Stockton, Calif., -34.3 percent
Source: CNNMoney.com, Les Christie (06/04/2009)
Tuesday, June 2, 2009
Foreclosure News / Teton Valley Idaho / Jackson Hole Wyoming
1 Million Foreclosures This Year
As of this week, 1 million new foreclosures have been filed in 2009, according to estimates by the Center for Responsible Lending, a nonprofit research and policy organization dedicated to preserving home ownership.
A new foreclosure starts every 13 seconds – nearly 6,500 a day."It's easy to think, 'Well, that's tough luck for the families that lose their homes.'
The truth is that foreclosures are costing neighboring families hundreds of billions of dollars and dragging down the entire economy,” says Michael Calhoun, president of CRL.Calhoun called on lenders and loan servicers to utilize the tools offered by the U.S. government to keep people in their homes.
Source: Center for Responsible Lending (06/01/2009)
As of this week, 1 million new foreclosures have been filed in 2009, according to estimates by the Center for Responsible Lending, a nonprofit research and policy organization dedicated to preserving home ownership.
A new foreclosure starts every 13 seconds – nearly 6,500 a day."It's easy to think, 'Well, that's tough luck for the families that lose their homes.'
The truth is that foreclosures are costing neighboring families hundreds of billions of dollars and dragging down the entire economy,” says Michael Calhoun, president of CRL.Calhoun called on lenders and loan servicers to utilize the tools offered by the U.S. government to keep people in their homes.
Source: Center for Responsible Lending (06/01/2009)
Foreclosure Activity / Idaho Slated For Early Recovery
NEW YORK—
If you want to be in the right place when the recovery starts, that place may be in Colorado, Idaho, Oregon, Texas or Washington.
The recession didn't start at the same time in every state, and it won't end at the same time either. A new forecast from Moody's Economy.com predicts that jobs growth will return first in those five states, starting in the last quarter of this year. Four of those states benefit from strong high-tech industries, and the fifth, Texas, has a strong base of energy industries.
A second wave of jobs growth, in the first quarter of 2010, is predicted in seven states: Alabama, Georgia, Nebraska, New Mexico, North Carolina, North Dakota and South Dakota.
The next wave, in the second quarter of 2010, is expected in seven states: Alaska, Arkansas, Iowa, New Hampshire, South Carolina, Tennessee and Wyoming.
That leaves 31 states and the District of Columbia waiting until the third quarter of 2010 for jobs to start growing again.
The new forecast is released along with the monthly Adversity Index. Each month, Moody's Economy.com and msnbc.com use data on employment, industrial production, housing starts and house prices to label each state or metro area as expanding, at risk of recession, in recession or recovering.
Like a jigsaw puzzle nearing completion, the index shows that the recession reached 373 of the nation's 381 metro areas, and 49 out of 50 states (Alaska was spared), by the end of March.
Here are several ways to explore this month's Adversity Index:
An interactive map on this page shows the economic health of every state and metro area. You can "play" the map to watch the progress of recessions over 15 years, or select any state to see data for each metro area. You can also see the map on its own page.
A month-by-month chart shows when the current recession enveloped each metro area, and which eight metro areas were not yet in decline.
The updated index will be published every month at http://adversity.msnbc.com. There is a lag of nearly two months, so April data will be out later in June.
An explainer tells how the Adversity Index assesses the economy.
A head start on recoveryWhy will some states recover faster than others?
High-tech industry is one element. A slowdown in technology spending in 2008 and 2009 has created a pent-up demand for technology — businesses that know they need to upgrade and are waiting for the ability to spend.
"States that have a high concentration in tech-related industries are well positioned to take advantage of this trend, which is particularly true of Colorado, Idaho, Oregon and Washington and to a lesser extent Texas," said economist Andrew Gledhill of Moody's Economy.com.
"Although not scheduled to begin its recovery until a quarter later, New Mexico also fits into this category of benefiting from a tech recovery."
Why is Texas, which has less high-tech industry, on the list for early job growth?
"The state had largely missed out on the housing boom (as did Colorado) and was among the last to join the recession, in large part due to lingering impacts from the energy boom of years past," Gledhill said.
"Similarly, other expected early risers such as Washington and Colorado were also relatively late to join the recession for various reasons. Thus, as conditions begin to turn nationally, they have less of a hole to dig themselves out of."
Another element for those early risers: better credit ratings.
"One factor that the five early job recovery states all have in common is less erosion in household credit conditions, with the worst of the group being Idaho," Gledhill said. "As a result, once it seems apparent that recovery is setting in, households in these states will be more able to turn and inject money back into their local economies. There is less de-leveraging of household balance sheets in these states. This will in turn prompt a more favorable trend in certain types of service industries."
If you want to be in the right place when the recovery starts, that place may be in Colorado, Idaho, Oregon, Texas or Washington.
The recession didn't start at the same time in every state, and it won't end at the same time either. A new forecast from Moody's Economy.com predicts that jobs growth will return first in those five states, starting in the last quarter of this year. Four of those states benefit from strong high-tech industries, and the fifth, Texas, has a strong base of energy industries.
A second wave of jobs growth, in the first quarter of 2010, is predicted in seven states: Alabama, Georgia, Nebraska, New Mexico, North Carolina, North Dakota and South Dakota.
The next wave, in the second quarter of 2010, is expected in seven states: Alaska, Arkansas, Iowa, New Hampshire, South Carolina, Tennessee and Wyoming.
That leaves 31 states and the District of Columbia waiting until the third quarter of 2010 for jobs to start growing again.
The new forecast is released along with the monthly Adversity Index. Each month, Moody's Economy.com and msnbc.com use data on employment, industrial production, housing starts and house prices to label each state or metro area as expanding, at risk of recession, in recession or recovering.
Like a jigsaw puzzle nearing completion, the index shows that the recession reached 373 of the nation's 381 metro areas, and 49 out of 50 states (Alaska was spared), by the end of March.
Here are several ways to explore this month's Adversity Index:
An interactive map on this page shows the economic health of every state and metro area. You can "play" the map to watch the progress of recessions over 15 years, or select any state to see data for each metro area. You can also see the map on its own page.
A month-by-month chart shows when the current recession enveloped each metro area, and which eight metro areas were not yet in decline.
The updated index will be published every month at http://adversity.msnbc.com. There is a lag of nearly two months, so April data will be out later in June.
An explainer tells how the Adversity Index assesses the economy.
A head start on recoveryWhy will some states recover faster than others?
High-tech industry is one element. A slowdown in technology spending in 2008 and 2009 has created a pent-up demand for technology — businesses that know they need to upgrade and are waiting for the ability to spend.
"States that have a high concentration in tech-related industries are well positioned to take advantage of this trend, which is particularly true of Colorado, Idaho, Oregon and Washington and to a lesser extent Texas," said economist Andrew Gledhill of Moody's Economy.com.
"Although not scheduled to begin its recovery until a quarter later, New Mexico also fits into this category of benefiting from a tech recovery."
Why is Texas, which has less high-tech industry, on the list for early job growth?
"The state had largely missed out on the housing boom (as did Colorado) and was among the last to join the recession, in large part due to lingering impacts from the energy boom of years past," Gledhill said.
"Similarly, other expected early risers such as Washington and Colorado were also relatively late to join the recession for various reasons. Thus, as conditions begin to turn nationally, they have less of a hole to dig themselves out of."
Another element for those early risers: better credit ratings.
"One factor that the five early job recovery states all have in common is less erosion in household credit conditions, with the worst of the group being Idaho," Gledhill said. "As a result, once it seems apparent that recovery is setting in, households in these states will be more able to turn and inject money back into their local economies. There is less de-leveraging of household balance sheets in these states. This will in turn prompt a more favorable trend in certain types of service industries."
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