Team Reba Real Estate

An interesting video explaining One West Bank profit model on “short sales” of former IndyMac loans

Filed under: King County, market activity, tax issues, real estate, Pierce County, Snohomish County, Conventional loans, FHA/VA, single family, condo, mortgage/loan, seller, economic issues, legal issues, buyer, Puget Sound, foreclosure, short sale, interest rates, Washington — Reba Haas @ 10:12 am

This is an interesting video about former IndyMac loans that were purchased by One West Bank and how the short sale process enriches that company. I had a short sale that I negotiated for a client last summer that included a 1st lienholder as IndyMac (now One West Bank) and our understanding of how these transactions worked helped us close a great deal for our buyer - without the… seller taking on a promissory note. What frustrates me is to see the lenders who buy discounted notes and won’t negotiate in good faith on the “short”.

Watch Video

Keep in mind, that if the short sale was an investment property, there is not only the possibility of a promissory note to the seller, but there are tax implications for any forgiven debt. Currently, with the Mortgage Debt Relief Act of 2007, primary residences have had some reprieve from taxation on forgiven debt, but a lot of underwater loans belonged to people convinced of buying single family homes as investment properties who weren’t that financially stable to begin with but who had hoped to grow their assets but who are now losing nearly everything.

If you know someone who is in a position of needing to do a short sale in the King, South Snohomish or North Pierce County areas, please feel free to have them call us to learn some of the options available to them.

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Lending a helping hand to friends & family in a foreclosure or short sale position

Filed under: Pierce County, King County, market activity, tax issues, Snohomish County, townhouse, commercial real estate, Conventional loans, FHA/VA, single family, real estate, condo, buyer, seller, economic issues, legal issues, Puget Sound, interest rates, mortgage/loan, foreclosure, short sale, Washington — Reba Haas @ 2:55 pm

This is a year for the record books! We’ve seen unemployment hit a 26-year high, a skyrocketing federal deficit, massive bank bailouts, and plummeting personal investments leaving many with decimated retirement accounts. Let’s face it, this recession is brutal, and it truly has touched everyone in some shape or form.

While most of us have merely had to pare back spending, you may know someone experiencing much harder times, possibly due to circumstances beyond their control. Maybe long-term unemployment or a major-medical crisis has caused them to get behind on their mortgage payments, and now they’re looking at foreclosure.

We have an unusual request to make. If there is someone like this in your life—a friend, a family member, a coworker—who is facing foreclosure or needs help getting out from an upside-down mortgage, we’d like to ask that you give them our number. We might be able to help them find some relief.

High Success Rate of Closing Short Sales

At Team Reba, we have developed our education and area of expertise as short sale specialists, and over the past several years we have successfully helped many sellers avoid foreclosure, so we know the realities.

We use a proven, systematic process that ensures a sale goes through as quickly as possible—typically closing between 60 to 120 days. Timing is critical, because the longer it takes to close the sale, the greater the impact on the seller’s credit.

Serving Our Clients with Compassion and Integrity

So what would this process look like? We’ll sit down with your friend or family member and have a confidential and compassionate discussion that’s completely non-judgmental. They can feel free to open up about their financial situation and address any concerns. We’ll ask them if they’ve explored all the options such as loan modification or turned to family and friends for help. Then we’ll discuss how the process works and give them the information they need to determine whether a short sale is a viable option.

Please understand that our goal is not to prey on or profit from the misfortunes of others. You know us better than that, and you know we have a deep and caring commitment to serve all of our clients with integrity, especially those who are dealing with difficult circumstances. However, this service has been so effective with other clients, we wanted to spread the word, so that someone you know who might be struggling with their mortgage could begin to turn things around.

If someone you know fits this description, we encourage you to have a frank conversation and have them call us for a confidential discussion. There is absolutely no obligation and there is no direct cost to the seller if they choose to work with us. It’s certainly worth the call to give someone you care about some peace of mind.

From all of us at Team Reba of RE/MAX Metro Realty

Michael Lindekugel, Robin Tomazic, and Rebecca “Reba” Haas

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September 2009 Team Reba Real Estate Newsletter

Filed under: Fair Housing, staging, monthly newsletter, real estate, market activity, King County, Conventional loans, FHA/VA, Snohomish County, Pierce County, disclosure, tenant, seller, economic issues, legal issues, Washington, buyer, Puget Sound, landlord, mortgage/loan, interest rates, rental — Reba Haas @ 3:33 pm

Here is a link to my “September Real Estate Update“:This Newsletter is full of interesting and useful information that I think you will enjoy whether you are a buyer, seller, homeowner, or renter.

This month’s issue includes topics such as:

“Sellers: Know Your Buyer Market”;
“Major Campaign To Extend $8,000 Home Buyer Tax Credit Underway”;
“Real Estate Investment 101″;
“New Disclosures Help Mortgage Consumers Know Risk”;
“Making Small Homes Have Big Appeal To Buyers”;

Plus a roundup of August real estate activity as well as much more advice and information.

I hope you enjoy this monthly newsletter. If you have any comments, please e-mail them to me. Or, if you would like to see a certain topic covered in future months, let me know that too!

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Buyer's tips: Banks getting business play on approved builder project credit offers…

Filed under: Phinney Ridge, real estate, market activity, title/escrow, single family, King County, disclosure, mortgage/loan, seller, economic issues, buyer, Seattle, interest rates, Puget Sound, Washington — Reba Haas @ 3:27 pm

Buyer activity has been really strong for us lately and I’m working on a couple of newer contracts for some clients who are buying new construction within the City of Seattle limits. Each of these properties/clients is reaping the benefit of a credit program that Golf Savings has been extending to several builder projects where their parent company, Sterling Savings Bank, was the originator of the construction loans.

If you’re looking for a new construction home in Seattle, it would be worth finding out if this builder has access to this program. It had been running since March with little activity, but the summer months have ramped up sales since June so the program was only recently extended for sales closing with a deadline of September 30th. We’ve been able to include this credit along with some other builder concessions and it’s making for some pretty sweet deals for our Team Reba clients. We’ve been working with Matt Johnson at Golf Savings who has been really excellent to work with thus far.

For other sellers, our builder clients, it has been a selling point to show that their 2 preferred lenders have some options available too. We’ve been listing a couple of Powell Homes properties and they do their lending with Washington Federal, who has then offered a $500 closing cost option. Our long time contact, Eric Aasness, now of Bank of America also has had a long running 1% toward closing cost reduction in his business and it’s been useful in not only new construction purchases but also in resale opportunities. If you’re interested in his program, give him a call at 206-915-ERIC.

So, what are you waiting for!?!?

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Better late than never, August 2009 real estate newsletter available

Filed under: real estate, condo, tenant, local events & places, monthly newsletter, title/escrow, market activity, mortgage/loan, foreclosure, Washington, rental, legal issues, economic issues, interest rates, buyer, property management — Reba Haas @ 11:04 am

Here is the link to our August real estate update newsletter!

This Newsletter is full of interesting and useful information that I think you will enjoy whether you are a buyer, seller, homeowner, or renter.

This month’s issue includes topics such as:

“Avoiding Closing Derailment”;
“Moving Made Easy, Keep It Simple”;
“Home Hunting Without Fear”;
“Seven Steps To A Credit Score Makeover”;
“Making Homes Even More Affordable”;

Plus a roundup of July real estate activity as well as much more advice and information.

I hope you enjoy this monthly newsletter. If you have any comments, please e-mail them to me. Or, if you would like to see a certain topic covered in future months, let me know that too!

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June stats for the Puget Sound MLS show some encouraging news… and mixed results

Filed under: Renton, Ballard, real estate, condo, West Seattle, Greenlake, Phinney Ridge, Central District, NWMLS, Madison, Beacon Hill, market activity, Redmond, Lakeridge, Seattle, Bellevue, buyer, seller, economic issues, Puget Sound, interest rates, Bryn Mawr, mortgage/loan, foreclosure, short sale, Washington — Reba Haas @ 7:59 pm

4-County Puget Sound Region Pending Sales (SFH + Condo combined)
(Totals include King, Snohomish, Pierce & Kitsap counties)

	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec
2000	3706	4778	5903	5116	5490	5079	4928	5432	4569	4675	4126	3166
2001	4334	5056	5722	5399	5631	5568	5434	5544	4040	4387	4155	3430
2002	4293	4735	5569	5436	6131	5212	5525	6215	5394	5777	4966	4153
2003	4746	5290	6889	6837	7148	7202	7673	7135	6698	6552	4904	4454
2004	4521	6284	8073	7910	7888	8186	7583	7464	6984	6761	6228	5195
2005	5426	6833	8801	8420	8610	8896	8207	8784	7561	7157	6188	4837
2006	5275	6032	8174	7651	8411	8094	7121	7692	6216	6403	5292	4346
2007	4869	6239	7192	6974	7311	6876	6371	5580	4153	4447	3896	2975
2008	3291	4167	4520	4624	4526	4765	4580	4584	4445	3346	2841	2432
2009	3250	3407	4262	5372	5498	5963

It would be easy to look at this and with a broad stroke look at it and think, “Whew, I’m glad we’re done with that real estate downturn!” but it’s not that simple. Other news that came out in June’s numbers shows that in real estate it still is the same story of “location, location, location” plus there is a bit of a chicken and egg issue. Is the lower inventory level because there are picked up sales, or because people who would have sold aren’t doing so now and are instead holding on till later? Either way, it’s probably just as well given that it will be a little while before appreciation picks up to make up for the loss of value of the past 2 years.

Statistical Summary by Counties: Market Activity Summary - June 2009

June 2009 Single Family Homes + Condos	LISTINGS		PENDING SALES	CLOSED SALES
June 2009 Single Family Homes + Condos	New Listings	Total Active	# Pending Sales	# Closings	Average Price	Median Price
King	4373	13351	3042	2083	$446,044	$363,116
Pierce	1668	5953	1341	798	$258,761	$230,000

Some of the news released talks about the decline in the number of condo units being sold in downtown Seattle but what has affected that sector has been the financing market as almost all lenders have required larger down payments (minimum 10%) which many buyers don’t have available. When 5% purchase options were available more people were able to save those kinds of funds, but when the median price $449,450 you can see why a change from 5% to 10% can put a dent in sales.

We’ll keep putting out information on the local market areas so that you can keep up to speed on market changes. If there is a specific market area you’d like to see highlighted or reviewed, feel free to comment or email us with your request.

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Ballard, Phinney and Greenlake generate relatively strong sales for summer 2009

Filed under: Greenlake, Ballard, Phinney Ridge, market activity, transit, NWMLS, real estate, condo, seller, economic issues, buyer, Seattle, interest rates, Puget Sound, Washington — Reba Haas @ 8:05 pm

Famous for its lutefisk and cedar shingles from the early settlers days in the area, this neighborhood has grown into a more sleek version of itself in the 2000’s. New density has arrived by way of condos and townhomes fueled somewhat by the thought there would be the Monorail to support the increased traffic. Alas, that didn’t happen but the building continued once the financing was underway and the economy at the time supported it. Granted, not all neighbors have been fans of these changes, but the Growth Management Act enacted in 1990 in WA State required cities to embrace and create density. Which led to a new zoning overlay of Ballard providing the ability for some of the old single family housing stock to be taken out for new, larger housing projects like these.

Market times for the Ballard area have been better than many others with an average on market of 68 days for homes in the $400-500k range. Higher priced homes from $600k-$1M have been taking much longer and have experienced major price reductions, particularly in new construction single family homes.

Because of the hit many builders are taking, don’t expect much new construction in this area - and nearby Greenlake, Phinney, etc, for the next 2 years. What’s out there in inventory now is what we’ll have for a while unless it’s a project already in process.

May 2009 sales activity shows year to date average price at $440,557 down 14% from last year’s average of $514,696. But, the good news for May was that sales volume was up 1% over last year. Always ahead of other market areas in terms of volume (because of the size of the area) there were 145 transactions closed in May for MLS market area 705.

June also had strong activity and is expected to come in July’s numbers due out in about a week.

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July 2009 Team Reba Real Estate Newsletter

Filed under: real estate, monthly newsletter, tax issues, "Green" home info, mortgage/loan, interest rates, economic issues, seller, buyer, Washington — Reba Haas @ 9:30 am

Here is a link to our “July Real Estate Update“:

This Newsletter is full of interesting and useful information that we think you will enjoy whether you are a buyer, seller, homeowner, or renter.

This month’s issue includes topics such as:

“The Contract Offer: What Price to Start With”;
“Campaign To Extend and Expand Housing Tax Credit”;
“Going Green May Help Sell Your Home”;
“Housing Starts Are Up Again”;
“Selling Your Home May Be Influenced by What Buyers Can’t See”;

Plus a roundup of June real estate activity as well as much more advice and information.

We hope you enjoy this monthly newsletter. If you have any comments, please e-mail them to us. Or, if you would like to see a certain topic covered in future months, let us know that too!

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Team Reba open houses for June 28, 2009

Filed under: open house, Redmond, West Seattle, condo, mortgage/loan, interest rates, seller, buyer, Seattle, Washington — Reba Haas @ 7:50 pm

We’ve got two places open this weekend for the statewide open house being put on with the support of the REALTOR Association. Details below:

Open 11am-2pm: Come see the kitchen/great room of this home, perfect for entertaining! Fully fenced yard ready for your pet/garden oasis. Short distance to West Seattle Junction restaurants and shopping, plus it’s close to downtown & bus lines for an easy commute! Great option over townhomes with no shared wall or concerns about who handles long term maintenance. Special financing offered at Washington Federal; $500 loan fee, 4.99% interest rate @ 20% down payment or a 5.5% interest rate with a 10% down payment.

Click on this link to see the full slideshow of photos for this great home. The builder, Powell Homes, has also recently filled in the rest of the appliance package for this house, adding in a fridge, washer/dryer, and a microwave. Kitchen appliances are stainless steel.

Open 1-4pm: This fantastic townhome condo with a stylish living room has high ceilings, plenty of windows, new carpet and a neutral color palette that gives you maximum decorating flexibility: go casual or formal. The kitchen is immaculate, with easy-to-clean brand new vinyl flooring and granite counters. Master on main has 5-pc bath and walk-in closet. Home is only minutes away from trails that lead to Burke Gilman & Marymoor Park. Whether you’re a restaurant connoisseur or a savvy shopper, you’ll love the variety offered by the neighborhood which is one block away (or less) from the Bella Bottega shopping district.

Click on this link for the slideshow of all photos for this home.

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Ten Questions to ask your lender when buying or refinancing a property

Filed under: mortgage/loan, interest rates — Reba Haas @ 12:43 pm

When you apply for a loan, your lender will look at several things:* Down payment amount* How long you have been employed in your current position* Whether you have the funds on deposit for your down payment and closing costs* Your income-to-debt ratio and your credit report

Lenders nowadays place much emphasis on the credit report. Credit bureaus compile a record of debts from credit card companies, banks, department stores, and other firms. This information appears on your credit report, so it shows whether you pay your bills on time. Lenders develop credit ratings based on how well you manage this function. The higher your credit score, the more flexible lenders will be in loan approval and specific requirements. A credit score of 680 and above is usually considered a strong borrowing candidate. Scores lower than 630 are generally considered high risk and frequently fall under sub-prime loan programs.

When you meet with lenders, ask how they decide if you are a good credit risk. It is likely to be from a credit report. Lenders can order the credit report for you and discuss your score. If your credit is less than sterling, they can usually offer suggestions on how to strengthen your credit position.

Ten questions to ask lenders:

1. What is the interest rate on this mortgage?To determine exactly what you’ll pay over the term of the loan, you need to know the rate. Rates change quickly, and if your credit is less than perfect, you may not be offered the lender’s lowest figure.

To effectively compare different lenders’ programs, ask for the annual percentage rate (APR) of the mortgage interest, which is generally higher than the initial quoted rate because it includes some fees. But beware: the APR found in advertisements can be misleading. Mortgage lenders don’t always include all the fees they charge in the calculation that determines APR, so customers who use that figure to shop rather than an itemized breakdown of rates, points and fees may end up comparing apples to oranges.

2. How many discount and origination points will I pay?Lenders may charge prepaid mortgage interest points to lower your interest rate or other points that have no benefit to you at all. Find out how many you’ll be expected to pay and which kind of points they will be.

3. What are the closing costs?Mortgages come with fees for various services provided by lenders and other third parties involved in the transaction. You want to know what those fees will be as early as possible. Lenders are required to provide a written good faith estimate (GFE) of closing costs within three days of receiving a loan application. (These fees should be written out individually and compiled as a sum).

4. When can I lock the interest rate and what will it cost me to do so?Your interest rate might fluctuate between the time you apply and closing. To prevent it from going up, you may want to lock the rate, and even points, for a specified period. Ask your lender if lock fees apply. Also, find out what the experts are expecting rates to do, read Rate Trend Index.

5. Is there a prepayment penalty on this loan?There may be a prepayment penalty on your loan. Some penalties are 1 percent of the loan amount, others are equal to six months’ interest, some apply only when you refinance or reduce the principal balance by more than 20 percent, and some kick in if you sell your home. Find out the duration of any penalty period and how the penalty is calculated. Some lenders offer lower interest rates to buyers who accept prepayment penalties.

6. What is the minimum down payment required for this loan?The rate and terms of your loan will be based on a down payment figure, typically 3 to 20 percent of the buy price. If you can put more money down, you may be able to lower your rate and improve your terms; if you come up short, you may be required to get mortgage insurance.

7. What are the qualifying guidelines for this loan?These requirements relate to your income, employment, assets, liabilities and credit history. First-time home buyer programs, VA loans and other government-sponsored mortgage programs typically offer easier qualifying guidelines than conventional loans.

8. What documents will I have to provide?Most lenders will require proof of income and assets before approving your loan, and may require other documents as well. Buyers with excellent credit may qualify for a no-documentation or “no-doc” loan, but they can expect to pay a hefty down payment and higher interest rate.

9. How long will it take to process my loan application?The answer will depend on a number of variables. When the loan business is brisk, underwriters get backed up, verification takes longer, appraisals move slower and other bottlenecks develop along the loan pipeline. Lenders may say two weeks, but 45 to 60 days is probably more realistic in most cases. You’ll need their best guess to determine how long to lock in your loan.

10. What might delay approval of my loan?If you provide the lender with complete, accurate information, the loan process should run smoothly. If the underwriter discovers credit problems, however, there could be delays. Make sure you notify your lender if you change jobs, increase or decrease your salary, incur additional debt or change marital status between the time you submit an application and the time the loan is funded.

Here are some additional questions to ask:· What different types of adjustable-rate loans (ARM’s) and fixed rate loans do you offer?· What are the Gift Fund limits on each type of loan? How much money may my relative or friends give me to help out with the down payment.· If I’ve received gift funds, is there a requirement for “seasoning” the funds? (“Seasoning” is typically leaving funds in an account for a minimum of two months).· How can I avoid paying Private Mortgage Insurance (PMI)? And, which loans require it?· What are the additional requirements for an FHA or VA loan, if I qualify for these?· How many months of reserves (funds to cover property taxes or hazard insurance) are required?

Please feel free to call us at 425-970-3697 or email us at Info@TeamReba.com with any further questions or concerns.

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February 12, 2010

An interesting video explaining One West Bank profit model on “short sales” of former IndyMac loans

November 30, 2009

Lending a helping hand to friends & family in a foreclosure or short sale position

September 11, 2009

September 2009 Team Reba Real Estate Newsletter

August 15, 2009

Buyer's tips: Banks getting business play on approved builder project credit offers…

August 11, 2009

Better late than never, August 2009 real estate newsletter available

July 28, 2009

June stats for the Puget Sound MLS show some encouraging news… and mixed results

July 27, 2009

Ballard, Phinney and Greenlake generate relatively strong sales for summer 2009

July 1, 2009

July 2009 Team Reba Real Estate Newsletter

June 26, 2009

Team Reba open houses for June 28, 2009

June 23, 2009

Ten Questions to ask your lender when buying or refinancing a property

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