This year Washington State enacted the Foreclosure Fairness Act which will provide assistance to those families and individuals who are struggling to make their mortgage. If you have fallen behind or are looking at the need to begin falling behind this video will be a huge help to you. It will explain your rights and the services available through the Foreclosure Fairness Act.

If you live in Clark County, WA and would like additional assistance please feel free to reach out. We’re here to help. While you likely feel like you’re the only one struggling to make the mortgage, rest assured, you’re not. Many times every single week we meet with families and individuals who for one reason or another find themselves at that crossroad of what to do regarding their house payment. Let us help you wade through these murky waters and help you get to the other side as smoothly as possible.

Curious about how the new extended Home Buyer Tax Credit works? Here is a great little video that breaks it down in simple terms. Take a look and I hope it helps.

A question that is regularly asked is “should I keep renting or should I buy a home”? This is a very valid question that deserves an answer. Here is a great little video that gives a very simple and understandable answer to the question. I hope you enjoy (and learn a thing or two).

If you’d like to discuss this topic further with me I’d love to chat with you. Feel free to ask any questions you may have.

Buying a house? Thinking about buying a house? Getting ready to close on a home? Are you completely confused about what Closing Costs are? Does the whole thing give you a headache and you wish someone could give you a super simple explanation about them. Well, today is your lucky day. Here is a great little 3 minute video that is Closing Costs 101.

Give it a watch and I bet it will help.

If you have any questions about this or anything else real estate related please feel free to shoot me a call or an email and I’ll do my best to get you an answer.

The other day Chris Hill brought a guest post to the Clark County Real Estate Guide all about the $8000 tax credit for first time home buyers. He gave some great understanding to this wonderful program.

Well, today he did a video on his blog. This was the first of a three part series about the program. I thought the video was most helpful and figured you may like to see it as well. So, head on over and give it a watch.

If you have any questions about this or any other part of the home buying process here please feel free to drop me an email or shoot me a call.

(Thanks to my Bonita Springs, FL real estate pal Chris Griffith for the sweet photo!)

Today I welcome Chris Hill as my guest author. Chris & I have worked together for years and he is a most trusted resource when it comes to strategic mortgage planning. Thank you Chris for providing this valuable information. I hope to see you become a regular contributor here at the Clark County Real Estate Guide.

About the program

This is a summary of the First Time Home Buyer’s tax credit included in the American Recovery and Reinvestment Act of 2009. The tax credit is for first-time home buyers only. A first time home buyer is someone who has not owned a principal residence during the three-year period prior to the purchase. The tax credit is available for homes purchased January 1, 2009 through November 30, 2009.

Tax credit better than tax deduction

Please remember that a tax credit is far more valuable than a tax deduction. For many people an $8000 tax credit is more valuable than a $32,000 federal income tax deduction! While a deduction reduces your taxable income, a tax credit reduces your taxes directly. Further, a tax credit can be paid to you even if you have not paid any taxes! For example, if you would have otherwise received $500 back on your 2009 tax return, you would now receive $8500 back (if you meet all conditions of the program and qualify for the $8000 credit).

A few other details…

The tax credit does not ever have to be repaid under most circumstances. If the home purchased is less than $80,000, the tax credit is equal to 10 percent of the home’s purchase price (up to the maximum $8000 credit). Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit. The credit phases out as income increases above those levels.

There are more details and conditions as well. To find out more about this great opportunity please contact Chris Hill.

About the author: Chris Hill is a Strategic Mortgage Planner with Home Lending Group in Vancouver, WA. Chris is a husband and father of two teenage sons. He enjoys golf and time with his family and friends. Follow Chris on Twitter @RealChrisHill.

(Thanks to Johnny Vulkan for the $cash$ photo)

Understanding? Really?

Well, not really. I don’t think it’s possible to really “understand” the process. Remember, I said there is NO LOGIC in the short sale process. None whatsoever. Nothing about the process makes any sense. Even the newest first time home buyer has a general idea of the process.

You write an offer, it gets presented. They counter the offer. We come to a point of mutual acceptance. We then get into inspections, negotiations about repairs, appraisal, underwriting (don’t get me started on the most recent issues regarding this topic), documents to the title company and then on to becoming a home owner.

But, when it comes to a short sale, the beginning of the above process is completely thrown out the window. All bets are off.

When will we hear from the bank?

The offer has been written and presented. Welcome to the Black Hole of the short sale transaction. Yes, upon submitting this offer you basically enter a into a place of the unknown. A place where time frames and “deadlines” don’t matter. Why you ask? Please refer back to Step 1. But I want this house! I’m willing to give them the “listing price” they’re asking. We said they HAVE to respond no later than… Doesn’t the bank care? Again, we’ve removed logic from this conversation. Remember.

When will we hear something? I wish I could tell you. I’ll stay in touch with the listing agent on a regular basis but chances are good they won’t know much either. “Ugh”, you say. How long do we wait? That, my friends, is the $64,000 question…

Check back in soon as I continue to share short little thoughts on the fun of a short sale real estate transaction.

(Photo courtesy of fernando under the Creative Commons license)

The question gets asked all the time. Do I buy now or should I wait for “the bottom” of the market to hit. Unfortunately, we won’t be able to tell you when the “bottom” hits until several months after it has happened.

The thing we can say is interest rates are still at an all time low and prices haven’t been this low in years. It is an incredible time to buy and the last 10 weeks of increasing pending sales says something about the activity starting to take place.

Don’t wait until rates jump or prices start to swing the other direction. If you have any questions please shoot me a call or email.

Take care,

Dale

The recently announced Homeowner Affordability and Stability Plan is a sweeping effort to stem the national tide of foreclosures and to help as many as 9 million homeowners stay current on their mortgages. Here’s a look at what the plan will entail and who will be eligible for assistance.

Basics of the Plan

The nationwide foreclosure problem has caused a ripple effect of lowering home values throughout individual communities. The Obama administration’s plan marks the largest government response since the beginning of the housing crisis. At its core are three main strategies:

1. Secure refinancing for as many as four million responsible homeowners, with the goal of making monthly payments more affordable
2. A $75 billion stability initiative to encourage lenders to modify loan terms for three to four million mortgages at risk of foreclosure or already in foreclosure.
3. Additional financial support for Fannie Mae and Freddie Mac.

Housing Affordability

Under traditional rules, homeowners who owe more than 80 percent of their home’s value cannot easily refinance their mortgage. Many homeowners who have paid money down and are current on their monthly payments have seen their home’s value drop enough that they lack the necessary equity to qualify for refinancing.

Under the Housing Affordability and Stability Plan, qualifying homeowners would be able to refinance their mortgages to current rates, making monthly payments more affordable. For those borrowers who are currently facing high rates following an ARM reset, the plan offers a chance to switch to a lower fixed rate mortgage.

Who Qualifies – In order to qualify for this portion of the plan:

Homeowners with second mortgages will also be eligible but with additional restrictions. Along with the 105 percent limit, borrowers must be able to prove that they can still meet payment terms on the original loan and the lender must agree to keep the original loan in “primary position” in terms of monthly payments.

Who Doesn’t – While some details of the plan have not yet been released, initially it appears that the following groups of borrowers may not qualify for this portion of HASP:

Housing Stability

The second portion of the plan is designed to provide relief to homeowners whose loan payments have risen to 40 or even 50 percent of their monthly income. The plan’s goal is to reduce the total monthly mortgage payments for struggling homeowners. To do so, the Financial Stability Plan has allocated a total of $75 billion in incentives that should encourage lenders to modify loan terms.

Some components of the plan include:

Who Qualifies -

Who Doesn’t – The administration has indicated that the following categories of borrowers will not qualify for this portion of the plan:

Support for Fannie and Freddie

Using money authorized by congress in 2008 under the Housing and Economic Recovery Act, the Treasury Department is increasing its funding commitment to Fannie Mae and Freddie Mac by $200 billion total. Specifically, Treasury will increase Preferred Stock Purchase Agreements to $200 billion each (from the previous level of $100 billion each).

The overall goal behind this move is to increase confidence in the two mortgage giants and by doing so support the continuation of low mortgage rates.

Other Provisions in the Plan

If you have any questions please give me a call.

Take care,

Dale Chumbley

It’s Just Different

I get asked this question on a regular basis. Continually, I let people know “no, it is not a horrible market”. It is a different market than the one we experienced a couple years ago. Not horrible, just different. Actually, the market is much more normal now than it was then. As a real estate professional I feel like I have a better grip on the market and how to price properties.

Throwing Darts At A Dart Board Is Not The Way To Price Properties

Unfortunately this is how things were being priced back then by a lot of people. Even then, the prices were being escalated into heights unheard of. The demand was there and the inventory wasn’t. Mixed with low interest rates and way to relaxed lending policies disaster was inevitable (as we all now know).

What About Now?

People will always need to sell homes and buy homes. This will not change. For those buying with nothing to sell, welcome to an incredible place to be! You are in a market that still has historically low interest rates and prices that are getting back into the place they should be. It is an amazing time to be purchasing a home or investment property.

If you are selling, remember you will not get what you “might have gotten” two years ago. That is the way of the market. If you have owned your home for more than three years you should still have made a great profit on your investment. Owned it for more than five years? Even better. Look at the return on your investment over that period of time, not “how much you lost” since the anomaly in the real estate market. Plus, if you are buying after you sell, you will pick up the same advantage of great prices as a buyer.

Questions?

If you have any questions about buying or selling, please don’t hesitate calling or emailing me. That is why I’m here. To counsel and advise in all your real estate needs.

Take care,

Dale Chumbley

Clark County Real Estate Guide
The Chumbley Team

If you are a first-time home buyer (someone who hasn’t owned a home in the past three years), now is the time for you to buy! The IRS is extending a tax credit of $7,500 for first-time home buyers within certain income limits: less than $75,000 income for single or head-of-household and up to $150,000 for married filing joint. Married couples who earn between $150,000-170,000 are eligible to receive a partial first-time home buyer tax credit. You can receive the $7,500 tax credit for the purchase of any home between April 9, 2008 – June 30, 2009. Buyers can take this tax credit on their 2008 or 2009 tax returns and it is a refundable credit (meaning that if you owe no tax, you would still get a $7,500 refund).

If you are a first-time home buyer, this is not the only reason to buy at this time. In addition to the tax credit, mortgage interest rates are good and the opportunity to get a good buy on a home is great right now. I would be happy to speak with you about your financial situation and how we might structure a loan that will work for you. I’m here to help you find the right loan at the right rate, right now!

For all mortgage-related questions, feel free to give me a call at (360) 907-911 or click the link below to go to my website and to apply online!

Take care,

Chris Hyde
Chris Hyde Mortgage