My good friend Gail Barrutia-Kovash with Wells Fargo Home Mortage recently shared some information with me that could have a severe affect on credit card users that neglect to carefully read any notices that are not invoices from their credit card companies.
About 85% of banks (up from 60% in July) reported having tougher lending standards for large and middle-market business loans and about 75% of banks tightened their lending standards for small firms over the same period.
As for consumers, anyone who swipes those credit cards a lot could get a rude awakening. Nearly 60% of banks responding to a recent survey stated they have tightened standards on existing credit card customers. About 60% of bank respondents reported cutbacks on credit card accounts granted to customers who did not meet their credit-score thresholds.
About 20% of all domestic banks reported having reduced credit limits on existing credit card card accounts to prime borrowers. In order for banks to do this they must notify borrowers but how many of us carefully read mail received from our credit card companies that is not a bill? If you are not aware that your credit limit has been reduced and continue charging, going over your new credit limit, it could have a significant negative effect on your credit rating.
By law, credit card companies can change your credit limits but they must notify you. If you are concerned contact your credit card company and find out what your limit is. There is a very good chance your credit limit has been changed, even if you have had a good credit history with your credit card company.
The credit-scoring algorithm looks at the credit utilization rate for each active account and separately, a person's credit usage for several accounts all together. Lets assume you have 4 credit cards with a $5,000 credit limit on each card. Three of your cards have zero balances but on one card you have a $4,000 outstanding balance which represents an 80% utilization rate for that card. Being that close to maxing out that one card will hurt your credit score, even though you have not maxed it out and you have 3 other cards with zero balances.
Find out what the credit limit is on every credit card you own and if at all possible have the limits increased which is hard to do these days. Make sure to keep your spending and usage of these cards under control. Many lending institutions have tightening their belts considerably with the credit crunch which has swept the nation.
Don't assume that since you have always paid your bills on time that everything is business as usual with your credit card companies. Take the time to read all the notices you receive and if you have questions, make sure and contact your credit card companies and find out what your interest rates and credit limits are. You will be glad you did.
George
I have written about this topic in the past but with the unprecedented buyers market we are currently in this topic certainly deserves to be reconsidered.
Unless one has been living in cave the past two years it is obvious that any retirement account funded by stocks or mutual funds has taken a huge beating. Experts are predicting that investment funds could experience a 25 to 30% loss before the fund/stock markets recovered.
Two years ago I was in a real estate class where the instructor spoke about the popularity of real estate to fund Individual Retirement Accounts. The instructor said that in many parts of the country there are companies that specialize strickly in guiding investors in the use of real estate to fund IRA accounts.
Basically your can take funds from an IRA and roll that money into Idaho Real Estate. You can use the funds to buy single family homes, investment real estate such as duplexes, triplexes, etc. and commercial real estate. You can even purchase an interest in an office building.
With Idaho Real Estate values at the lowest level seen in years and still falling we are seeing incredible opportunities for individuals to purchase real estate at near rock bottom prices and place these properties into your IRA. Even if these real estate investments were to double in value in three to five years, those gains would be allowable. It is very doubtful one can experience this upside appreciation in stocks or mutual funds.
In many areas of the Treasure Valley property values have dropped 25% or more and many foreclosures can be purchased at nearly 70% of what they sold for just two to three years ago. Real estate markets are cyclicle and historically have always rebounded. It is very likely that some great fortunes are going to be made by indivuduals that have the funds to purchase bargain priced real estate that is available today. I have heard several people tell me recently they wish they had money to buy real estate today. It makes a lot of sense to investigate the use of IRA funds to purchase investment real estate that has such an strong upside growth potential.
As always, seek legal and tax advice when considering any investment. As I have mentioned above, there are companies that specialize in the use of real estate to fund IRA accounts and will work closely with your, your attorney and or accountant. If you or your attorney or accountant would like the names of two or three of these companies please contact me and will happy to share some valuable information with you.
George A. Tallabas III
Associate Broker
The Idaho Real Estate market has changed the past 24 months and no one will argue with that statement. I still find it interesting that many homeowners have not been given good advice in dealing with a challenging market. I hope these tips will shed some light on some very important facts.
1. Statistics are meant to be analyzed. Look at statistics in your area and see what trends are developing. The MLS system in southwest Idaho allows Realtors to create what is called a CMA Summary which is the most important piece of data that can assist in establishing the price of your home. This summary will display how many competing homes are on the market, how many have sold in the past six months, how many are pending sales and how many homes expired or were withdrawn. This summary breaks down the average days on the market, average selling prices and more importantly, the average asking and selling price per square foot which is the most important data. This report is imperative for anyone selling a home. Without this report there is no possible way to understand where the Idaho Real Estate market was, currently is, and where it is headed.
2. Let go of your pride. I have seen too many sellers let their pride get in the way of pricing their home. I once had a couple argue with me that their home was better than any comparable sale I showed in my report and that I had not given them any credit for many features their home had that were superior to any of my comparables. They totally ignored my recommendation and hired a "Discount Broker" and listed their home $20,000 higher than what I had recommended. Over a period of time they lowered the price of their home four times and eventually dropped the price below my original recommendation but by the time they lowered it the final time they had missed the market. Their home never did sell and it has now been two years since they first put their home on the market. You would not argue with your doctors prognoses. Please listen to a professional Realtor that has countless hours of classroom study and experience.
3. Get exposed. The Idaho Real Estate market has changed dramatically over the last decade. You will rarely see a sophisticated buyer look for a home in any kind of print advertising. The National Association of Realtors has reported that 85% of all buyers begin their home search on-line. How do you know if your Realtor has a good intertent presence? Simply go to Google, Yahoo or any other search engine and type in the name of your Realtor. If you see their name smoothering nearly every line on the first and second pages it is a good sign that your Realtor embraces the net. Ask your Realtor how your home will be exposed on the net and have them prove this to you. Forget about asking to see your home advertised in print. Print advertising has nearly gone the way of wagon trains. If your Realtor cannot guarantee you strong internet exposure for your home run as fast as you can Forrest!
4. Make your home easy to show. I can't tell you how many times I read "Shown by appointment only". This is a HUGE mistake! With all the homes on the market the last thing you want to do is to make your home difficult to show. I can assure you that if your home is shown "By appointment only" that it will be passed over by 99.9% of all Realtors. The inventory of homes is at an all-time high and many homes are either vacant or the sellers are motivated and very cooperative. If you can't allow your home to be showed easily I can guarantee you that your home will be in most cases passed by when showing schedules are made.
5. Demand your Realtor gives you Web exposure on Realtor sites! This absolutely shocks me but there are many homes that are submitted to the MLS where the Realtor has removed the listing from "Public Viewing". This is like taking a boat away from a water skier! The skier will simply go no where! What does "Public Viewing" mean? When your home goes into the MLS there are many Realtor sites like Idaho MLS Home Search that allow surfers to find your home. If your Realtor keeps your home from "Public View" it will keep your home from being viewed on literally every independent Realtor site out there. I cannot in my wildest dreams understand why any Realtor would hurt their seller like this but many do it. Make sure your Realtor does not do this to you and make them prove it by giving you a copy of the same MLS printout other member Realtors see.
6. Prepare your home to show. This seems like a no brainer but is often overlooked. When you decide to put your home on the market park across the street and ask yourself what you see. Many of us take for granted coming and going from home. Look at your homes through the eyes of a buyer. If you cannot do this yourself have a family member or friend do it that will be honest with you. "We all live in our home in a certain way but we need to prepare it for the masses when we decide to list if for sale". This means cleaning out closets to make them look bigger, de-clutter and get rid of too much stuff and keep your home light, open and airy. With so many homes on the market you need to set your home apart from the competition. This is easy to do and you will see the benefit.
7. Don't be stubborn with price reductions. Keep in mind you are competing with a lot of "Idaho Short Sales" and "Idaho foreclosures" which are selling at incredibly low prices. Many of these homes are in very good condition and you are competing directly against them. Like it or not these homes are forcing the average price of homes downward. If you have done everything right in marketing your home and it still does not sell in 45-60 days you need to make price adjustments until you attract a buyer. I know this is a tough pill to swallow but this is our current market and this market will be with us for at least two more years. The longer your home stays on the market without selling the more it gets "shop worn" and Realtors and buyers begin to ignore it.
Take these tips to heart and I can assure you that you will dramatically increase your chances of selling your home in a very tough sellers market.
All my best,
George
I recently attended a class held by an employee of Indymac Bank that has worked in the Loss Mitigation or "Short Sale" department of Indymac for 18 years. This speaker is the second speaker in 2 months to tell us that ARM loans will continue adjusting through 2010. The instuctor stated that 5/1 ARM loans made in 2005 will have their final reset in 2010. This instructor stated that these resets will certainly cause more homeowners to face a Short Sale or Foreclosure unless something drastic happens in the financial markets.
In an article written by "Market Watch" the article states that in the coming months and years, the credit crunch that's now squeezing mainly the poor is likely to hit millions of middle-class homeowners who took out risky loans during the great housing boom early in the decade. The article goes on to state that more than 1 million families will loose their homes in the next few years by one estimate and another study predicts 2.2 million foreclosures will hit our market in the months and years to come. Read The True affect of ARM Loans on the Housing Market.
I subscribe to a service that emails me all the NOD's or "Notice of Defaults" which is the beginning of foreclosure. These recordings are increasing in numbers weekly and have been doing this for most of this year. All this supports what Market Watch is reporting.
I encourage anyone that is uncertain about their loan or feels uncertain about their ability to make their future payments to not wait to take action. I am a "Certified Short Sale Specialist" and my goal is to assist homeowners that are struggling with their home loans. In the class given by the employee of Indymac I learned how to expidite Idaho Short Sales to give you the best chance of executing a successful Short Sale in Idaho. I can answer all your questions about every facet of the Idaho Short Sales Process.
If you are looking to buy a home the choice of affordable homes available to you is currently the best I have seen in my 28+ years as a real estate broker in Idaho. There are over 900 homes in the Southwest Regional MLS of Idaho that are identified as Idaho Short Sales and the number of foreclosures are growing as I have referenced above. Contact me at the phone numbe or email below or begin your own search at Idaho Real Estate Search
Call me at 208-880-2333 or email me at george@tallabas.com with any questions.
All my best
Idaho real estate prices seem to be falling almost monthly. Whenever I am asked to do a search in any price range I find that now as many as 7 out of 10 homes I show are either Idaho foreclosures or Idaho short sales. In the peak year of 2005 it was almost unheard of in the Treasure Valley area of Southwest Idaho for homes to be priced less than $100/ft. and many quality homes were well over $100/ft. To calculate the price per square foot simply take the asking price of a home and divide it by the square footage of that home.
Fast forward to 2008 and we are now seeing many foreclosure homes and even some short sale listings that are priced in some cases as low as $65/ft. which has not been seen since the 1980s! When I first saw homes hitting the mid $60/ft. range I was in shock and could hardly believe what I was seeing.
So how do you find these Idaho home bargains? I have a system that allows me to input everything you are looking for in a home. In addition to many search criteria I can also program my system to search only homes priced from say from $60/ft. to $80/ft. I can then set my system up to have every listing that meets your criteria automatically emailed to you the moment that new listing hits the market.
When I say every new listing I mean just that. I am a member of the MLS or "Multiple Listing Service" and I have access to every Idaho real estate listing that every member office submits to the MLS system. As soon as a member Realtor from any office in the valley lists a home meeting your criteria you will be sent an email with that new listing attached.
What does this service cost? The good news is that this service is totally FREE! Yes, there is no cost to you for me to set you up with this service and the service can be cancelled at any time. This service has helped many, many buyers find great bargains in today's Idaho real estate market.
You can do your own search at any time by going to Idaho real estate search or you can email me at george@tallabas.com or call me at 208-880-2333 and ask me to get started looking for your next Idaho real estate bargain.
I had lunch with one of my mortgage lender friends this past Wednesday and I asked her if there were anymore Zero Down mortgage loans left. She said the only true Zero Down program remaining is the Ameridream Program which offers down payment assistance to qualified borrowers. However, she said that the Ameridream Program as we know it here in Idaho is due to expire the end of September, 2008. She said that if a loan is not closed by September 30, 2008 there will be no more Ameridream down payment assistance as we have known it.
This is the result of the reigning in of zero down programs across the country due to over zealous lending practices of the recent past years that in part has led to near record foreclosures and short sales across the country. Therefore if you think you qualify and would like to find out if you qualify for an Ameridream Program please contact me soon.
Home prices have fallen drastically in the past year and there are some amazing homes available at prices no one imagined. I recently sold a bank repo that sold for $135,000 in 2005 for $97,000. Many opportunities like this are out there so quit procrastinating and waiting for prices to hit rock bottom. In my opinion, people that wait for prices on any product to hit rock bottom usually end up missing out on great opportunities.
Begin your Idaho Real Estate search here and contact me at 208-880-2333 to find out what kind of financing you qualify for. Opportunities like this many never be seen again.
I am beginning to believe strongly in the saying "The more things change, the more things stay the same". This is certainly true when it comes to good old fashioned communication and knowledge. A few years ago a local farmer called me and asked if I would be his Idaho Realtor. He informed me that he was unhappy with his current Realtor and that I came highly recommended. After a discussion with my broker (the "other Realtor" was an agent in my office!) I decided to work with this farmer.
Three months into my listing contract with this farmer he calls me one day out of the blue to thank me for always returning his calls and for calling him on occasion just to see how he and his family are doing. At first I thought this was a joke. After all, doesn't every Realtor return calls and call their clients to see how they are doing? My client explained to me that he had worked with several Realtors in the past and I was the first to return his calls promptly and the first to call him regularly to see how his family is doing.
This farmer not only listed many farms with me but went on to refer me in excess of 10 million dollars worth of real estate business and continues to do so. Just two weeks ago I had another seller that had worked with many Realtors in the past tell me he was listing his home with me for the very same reason. He said he liked the way I communicated with him and he also had never seen this before.
About two months ago I took my favorite sunglasses into the local Walmart store because one of the screws would not tighten. After working on them for about fifteen minutes the lady assisting from the optical department came back and told me the screw was stripped and nothing could be done. I was really bumped because these sunglasses were my favorite. I didn't get rid of the sunglasses. I continued to wear them but they began to fit worse and worse.
Today I went back into Walmart to the very same optical department and a different lady helped me. I simply told here that one of the screws would not tighten properly. She told me to give her some time and come back. I finished my shopping and came back. To my pleasant surprise this wonderful lady had replaced the screw and the new screw worked fine. She also tightened the other screws and cleaned my glasses for me. My sunglasses now work beautifully!
Here were the very same pair of sunglasses and one lady could not or would not find a solution. Another lady accepted the challenge with a smile on her face and fixed my favorite sunglasses.
I am finding today that many Realtors that entered the real estate business the past few years entered real estate for the wrong reasons and are now leaving the business in near record numbers. The majority of the Realtors that remain are hanging on by a thin thread. What many of these Realtors don't do is 1) Communicate correclty with their clients and 2) Find creative solutions for their clients real estate needs. If it isn't an easy transaction they simply give up.
I have already explained how easy communication is. It is not rocket science and is what each and every one of you want. Even though I have been in real estate for over 28 years I am adamant about education and take numerous real estate classes annually. I have already this year alone taken four valuable classes that have clearly helped me with new knowledge to deal with the current real estate market.
I was raised on a row-crop farm here in Southest Idaho where challenges were very common. We always had to find a sulution on the farm and never were allowed to give up. "Thank you Dad". I love challenges and love to find solutions for those challenges. I can guarantee you communication and I guarantee you that if there is a solution for your problem I will consider it a challenge and will not give up until I have found a solution for you. This is why business is good for me in a year where success in real estate is very rare.
I thank all my customers and clients for making this a great year for me and I am anxious to prove to you that I consider your business a privilege and an honor.
Your Idaho Realt Estate Professional
With all the talk about escalating gas and grocery prices consumers have had to learn to tighten their belts and budget their money they were not acustomed to being concerned with in the past. Many families have made some tough decisions to deal with the changing economic landscape. When our backs are against the walls it is amazing what we can do. It is amazing what we can do when our backs are against the wall.
I have certain clients that have purchased two homes from me over the past 28 years I have been in the real estate business. What is really interesting about these clients is that they have paid off both homes they purchased from me in 7 years each. When I asked them how they did this they said they simply added an additional $300-400 to each monthly payment and took half of thier income tax return each year and applied it to thier mortgage.
Did you know that if your take a $200,000 mortgage financed at 6 1/2% for 30 years the monthly payment would be $1,264.14. If you apply an additional $450 to each monthly payment you would pay off that same loan in 15 1/2 years. If you added an additional $1,000 to $1,500 each year from your tax returns you would accomplish what my clients did.
You say you don't have an extra $450 per month? I think this is because a lot of homebuyers tend to purchase homes that are more than they need and it is a struggle to make the monthly obligations.
What I am proposing is that everyone lower their sights and buy a more conservative home. It is amazing what our grandparents and parents lived in and made a go of it. It seems like the the attitude of "competing with the Jones' next door" has gotten out of hand over the past 20 plus years. I have seen more couples buy homes that are what they yearn for, rather than being what they need.
With the Idaho Real Estate market being what it is, there are some great buys available that we have not seen in years. My proposal is that you buy one of these great Idaho Short Sales or Idaho Foreclosures and obtain a mortgage that is well within your means of making each month. Do what my clients did and you will be amazed at your accomplishment. Please don't make the mistake of refinancing your home every few years like many do. Simply stick to your plan of paying off your current mortage as quickly as you can.
You will feel great when you make that last mortgage payment and your family will have the security of knowing how much extra money is available each month now that your home is free and clear. This isn't a popular theory with many because we are supposed to be good "consumers" always refinancing our homes and buying the next boat, harley or some other toy. Not only will you feel good about doing this but you are teaching your kids a valuable lesson regarding money management
Begin your Idaho Real Estate search here
Lock mortgage rates now if you can
For the past 12 months the Federal Reserve was aggressively lowering the discount rate in an attempt to stimulate the economy. When the Federal Reserve lowers the discount rate mortage rates normally rise. The reason this happens is that the Discount Rate is the rate that banks borrow money at and is not a reflection of mortgage rates. When banks borrow money at a lower rate they pass this on to consumers via personal loans, credit cards, etc. The bond market views this as fuel for inflation and therefore mortgage rates typically rise in reaction.
It has appeared for some time now that the Federal Reserve is pretty much done with lowering the discount rate which should be good for mortage rates if the fear of inflation from other factors was not looming. I have felt for the past few weeks that we should have seen lower mortgage rates and my reasoning was that 1) The Federal Reserve is done lowering the discount rate, 2) The high rate of foreclosures and short sales across the country is a reflection of how bad the real estate market is across the country and 3) With gas and commodity prices skyrocketing consumers would be spending less and less on retail items.
That would have been good but just recently the commerce department said May retail sales rose 1 percent in a reflection of the effect of rebate checks. Even though there is a glut of homes in most parts of the country there are areas in Texas, Washington State and North Carolina that have not been affected by the subprime fallout.
Just three weeks ago Bank Rate reported the 30 year mortage rate was sitting at 5.75% This rate as of Friday the 13th of June, 2008 the rate was sitting at 6.29% for the same 30 year mortgage. It seems that any sign of inflation, as small as it may be is causing fear in the bond market causing mortgage rates to rise.
Yes folks, any bad economic news is good for mortgage rates in general. Anytime the economic news is positive, ie; retail sales, durable goods orders, automobile sales, consumer spending, etc. are strong we will see mortgage rates rise.
There is just enough feeling in the market that the economy is showing signs of life and as long as that is the case we will see mortgage rates continuing to rise. In my opinion, these higher rates have been offset by falling home prices. Idaho Real Estate can be purchased in Southwest Idaho for as much as $20 per square foot less than they were selling for just 3 years ago. In one case I recently sold a wonderful new custom home for $87/foot. This home would have easily sold for $115/foot just three years ago.
We don't know how long home prices will stay low so my advice is that if you find one of the thousands of great deals out there in the housing market, that you take advantage of it lock in your home price and mortgage as well.
Start your Idaho Home Search here before home prices start rising as well.
Buying your next Idaho home should be a wonderful experience. It does not have to be a stressful and anxious experience. Follow these tips and you will be well on your way to making your next home experience one you will remember.
1) You have heard the term location, location, location! Do some homework before you go looking for your new home. Even if it meets all of your requirements is the home located in an area that is convenient to schools, shopping, interstate and is the area positioned to grow? I heard on the radio recently that Starbucks does a lot of homework before it decides to go into an area. When it goes into an area Starbucks has decided that area is poised to grow based on certain factors. This does not mean you need to be near a Starbucks but a Professional Realtor can help you analize areas you are considering similar to the way Starbucks analyzes areas.
2) You just are not buying a home, you are buying an area. So you have found the perfect home for your family, what next? Stand at the front door and look around you in every direction. Get in your car and drive around the entire area within a square mile or so. What do you see? Is there anything that concerns you? Too many buyers focus on just the home but the area and what surrounds it can have a lot to do with the growth of your area and the resale of your home.
3) Advice is good but who's is it? I can't tell you how many buyers I have worked with over the years that found the perfect home for them and then they asked the advice of parents or their siblings or some other friends that gave them poor advice. Please remember that very few parents, siblings or other friends are professionals when it comes to buying a home. They act more on emotion and they almost feel like they have to find something wrong with the home or the area to gain your respect or to feel they have contributed. If you have done your homework and worked with a Professional Realtor there is a lot of reason to have faith in your decision.
4) If you have young children have you searched the area for sexual offenders? How would you feel if you have two young girls and you find out after closing the man living next door is a registered sexual offender? Doing your homework now will make you sleep better at night.
5) Let's make a LOW BALL OFFER! I have heard this more in the past 6 months than I have heard it the past 28 years! With all the talk about foreclosures and short sales the media has scared a lot of buyers and told you to not buy now and if you do, make a low, low offer. This can backfire on you. Sellers are human beings complete with emotions. If you make a very low offer it is likely the sellers will be offended. I have seen sellers that received real low ball offers and refused to negotiate or submit a counter offer. On the other hand I have seen buyers make a "reasonable" offer and get a good deal on a home. Many homes are already priced at rock bottom prices. Making LOW BALL offers way below these already low prices could backfire on you. Again, a professional Realtor can do an analysis for you and you can see where a particular home is priced comparable to other homes that have sold and are pending.
6) That's O.K. "I will buy the home in as is condition". Wrong! I have heard too many buyers tell me they are O.K. with a home they have made an offer on and don't need a professional home inspection completed. The most common problems that can become major problems are often unseen to the average person. I have seen furnaces that are on their last breath. I have also seen mold in crawl areas of newer homes. The $250-$350 you will spend on a private home inspection is the best money you will spend on your new home. Not only will the inspection disclose flaws of the home, a good inspector will give you sound written advice on maintaining your home for the years to come. Also, please remember that relatives and friends have great intentions but they are not professional inspectors and could end up costing you thousands if you allow them to do your inspection.
7) Let's go buy that new furniture now that we have a home in escrow! Wait a minute! If you have made an offer on a home and closing is pending the last thing you want to do is go create any new debt before closing. Remember, your mortgage lender has approved you based on your current income/debt ratio among other factors. If you go out and splurge on new furniture or a new car you not only change your income/debt ratios, you could shoot yourself in the foot by all of a sudden not qualifying for that new home.
The home buying process can be a painless and wonderful experience. Follow these tips and you will be well on your way on having the home of your dreams.
Get started on your home search by going to Idaho Home Search
With all the talk about Idaho Foreclosures we as Realtors are being bombarding by buyers looking for the "Best Deal" and want to buy one of those foreclosures everyone is talking about. Before you run out and buy one of these there are some things you need to know. Hopefully these tips will help you in negotiating for and purchasing a foreclosure.
First of all there are two basic kinds of Idaho foreclosures. The first kind of foreclosures are those that the bank which made the loan on the subject home already owns the home and is marketing it. You can apply for financing on these properties just like you would do with any other home. Many of these homes need some kind of repair. The repairs can range anywhere from cosmetic to some major electrical, plumbing or structural. When you purchase one of these foreclusures typically listed by local Realtors you are wise to take advantage of your right to conduct a home inspectoin. The bank which owns the property will likely have you sign an addendum that says they will do no repairs but you still have the right to do an inspection and cancel your contract if many flaws are found. Many buyers waive their right to do an inspection which in my opinion is a big mistake. Major repairs could end up costing you more that the home is worth. Be careful and complete your inspections in a timely manner. Speaking of inspecitons. Do not do these yourself or hire your buddy. Please hire someone who has the property credentials to conduct these inspections. Here is a list of my preferred vendors.
The other kind of foreclosures are the kind that are being auctioned off in the form of a "Trustee Auction". These auctions are typically conducted by title companies where one or more bidders can bid on a specific property. The bank which had the loan on the property will typically submit a "minimum bid" or basically their own bid at which they will buy the property back. The individual conducting the auction will read the banks minimum bid and any bidder must bid above this amount. The winning bid MUST PROVIDE PAYMENT IN THE FORM OF A CASHIERS CHECK AT THE TIME OF THE SALE. In addition, the winner bidder will receive a "Trustees Deed" which warrants nothing. Your are basically gambling that the home will be in reasonably good condition and that you can cover any unpaid real property taxes or irrigation bills due. It is imperative that you talk to a Realtor that is a Foreclosure Specialist and has experience in dealing with these foreclosure sales. Doing so will save you a mistake that could end up costing you more than you ever bargained for.
Buying a foreclosure can be a great experience if you know what you are doing. Good luck to you and yours.
George
I have been pondering lately about our generation. Many events have taken place over the past 2-3 years that has changed the landscape of this country as we have known it. I started my real estate career in 1980 and now over 28 plus years later I look back on my life and think about those that influenced me the most. These are people that left a big impression on me and changed my life in a positive way. Several touched my life but when I think about the current economy and the current state of econimic affairs one man's name comes to mind, Myron Stahl. Myron came to me as a referral in the mid 1980's and was a hard working self made millionaire. You see Myron lived through the great depression and told me stories of not knowing if they (his family) and he would have food on the table the following day. Food, gas and other commodities were very scarce and times were very hard.
Myron talked about the number of relatives and friends with several chidren that lived on meager amounts of food and general necessities just to survive. Myron, who is now deceased told me great stories about hard physical work and personal sacrifices made by him and his siblings and parents. All of the hard work and discipline paid big dividends for Myron. He invested his hard earned money wisely and became a very, very wealthy and respected man. I sold Myron some bare land west of Caldwell between Dorman Ave. and Farmway Rd. that is known as the Stahlridge Subdivision, one of the nicest developments in Caldwell. I also sold Myron a gravel pit that is located north of Beacon Light Road off of Highway 55 in Boise. Myron purchased this gravel pit when it was in bankruptcy and it has been a thriving gravel pit that has generated hundreds of thousands of dollars for Myron's estate.
Even though Myron was a millionaire he was not a worldly or materialistic man. When you met Myron and spoke to him for just a little while you could feel and hear the peace, tranquility and wisdom of this great man. Myron once told me he would not have been half the man he was if he had not lived through the great depression. He said he worked as hard as he did so his family would have it better than he did and he certainly accomplished that and more.
Tom Brokaw calls my fathers generation "The Greatest Generation". My father, like Myron had very little growing up and had purchased and paid for 40 acres of farmland in Wyoming by the time he was 16 years of age. He came to Idaho in his early 20's and was told he would never accomplish his lifelong dream of becoming a farmer. Dad not only became a very successful farmer but learned to use a welder and cutting torch as good as anyone I have ever seen. He went on to overhaul his own tractors and trucks and built his own potato and beet/grain beds for his trucks. He built truck beds and a gooseneck trailer that people marveled at.
I'm sure that during Myron's days as a youth that many thought things could not get any worse. When you don't honestly know if you are going to eat the following day it is hard to keep your faith. My Dad came to Idaho with very little money but a BIG HEART and a strong desire to succeed with the limited third grade education he had. If Dad had not had a lot of the adversities in his life, I doubt if he would have accomplished everything he did. I credit all of my hard work, determination and ambition to my dad and the many days of hard physical work my sisters and I did on the family farm led to our hard work ethic.
I hear many people complaining about the high cost of gasoline and the high price of groceries and other commodities. There is no doubt that our society became accustomed to the inexpensive gasoline and groceries for many, many years. To have to suddently deal with skyrocketing prices for many goods and services almost overnight it is easy to understand the frustration.
I believe we will rise above these trying times as a country just as we have risen above every other challenge we have faced. We can complain about how bad things are or we can do like Myron and my Father did and simply work hard with a determination and faith that something good will come to those who persevere. We can become part of a generation that rises above the current trials and tribulations and we can do it while facing record high gasoline and commodity prices. After all, this is nothing close to the great depression.
I want great things said about this generation
After months of searching for a location from Boise to Caldwell AFI Packaging has selected a location west of Caldwell Idaho just east of the town of Greenleaf as the location for a new start-up company. The new company managed by Drew Dalgetty will consist of approxiately 27,000 square feet and employ approximately 15 employees when complete. The company will produce on site allergen free cake and bread mixes plus other allergen free products. A contract for the product has already been secured and there is interest from other companies including some franchises.
Mike Mussell, owner of Mussell Construction is purchasing the site for the new business and completing an existing structure which is pictured. Drew Dalgetty states the company, AFI Packaging is working and partnering with another midwestern company on the project and states the national interest for the product is strong. Dalgetty looked at locations in Boise and Nampa but chose the site west of Caldwell due to it's easy access to I-84 and the low comparable traffic count for the site. This was important because the site will see daily deliveries and pickups from large semi trucks.
I was fortunate to work with Mike and Drew and assisted them in locating the site they chose west of Caldwell. I am elated that the site in Caldwell was chosen over all the other locations that were considered. Construction will commence towards the end of June, 2008 and completion is estimated to be 90 days after construction begins. This is a positive addition to the city of Caldwell which has made recent news for it's proactive attitude which has included the recently completed Indian Creek Project and the Franklin Road Interchange which is scheduled to be completed the fall of 2008.
Treasure Valley Real Estate Services
Idaho Real Estate buyers have been confused because every time they call me about buying Idaho Real Estate in Idaho I have to tell them that mortage rates have risen. They could not understand why mortgage rates were increasing when they heard on the news that the Federal Reserve Board has been aggressively lowering the discount rate which has been on the news for months.
The discount rate is the rate member banks may borrow short term funds from the Federal Reserve Board. In other words, the Federal Reserve offers these funds to member banks in an attempt to stimulate the economy. It is designed to encourage member banks to offer consumer products and services at more competetive rates to encourage consumers to spend money. Banks can lower rates on credit cards and other consumer type loans when they can borrow money at lower rates.
The downside to this is that lower rates passed on to consumers can fuel spending and therefore inflation fears if it works like it is designed to. When consumer spending rises fueling inflation, mortgage rates rise which is exactly what has happened these past few months.
When the economy is robust and inflation is a concern mortage rates will rise in an attempt to curb inflation. When the ecomony is sluggish as it has been the past few months bonds (which affect mortgage rates) will rise and mortgage rates will fall in an attempt to encourage economic growth.
So you ask, why have mortgage rates not dropped since the economy has been sluggish? The reason being is that the Federal Reserve Board has been on an aggressive patern of lowering the discount rate which economists believed would help the economy and fuel inflation which just has not happened. The economy remains sluggish in spite of the efforts of the Federal Reserve Board.
It appears now that the Federal Reserve Board is close to ending it's aggressive posture of lowering the discount rate mortage rates will finally start coming down, especially if the economy remains sluggish. I have said now for months that that 30 year mortgages must reach 5% or below to make a real positive difference and deal with the glut of homes in most parts of the country.
Today, the 6th day of May, 2008 Bank Rate quoted 5.78% on 30 year mortgages compared to a quote of 5.87% a week ago. If mortage rates continue to fall and fall below the magical 5% rate I have mentioned I clearly expect the housing market to be revived in many parts of the country. Combine low housing prices caused by record short sales and foreclosures with incredible sub 5% mortgage rates and this national housing market could rebound.
If you see mortage rates continue to fall don't wait. Go to Idaho Real Estate Search to start your home search and find the the perfect home for you and your family.
Parents and grandparents please, please read this carefully. I have written about this in the past and advised many indivuduals. I think it is time to write about this again. Those I mentioned this to a few years ago and put the idea to practice are well on their way to funding a wonderful education for their children or grandchildren.
The timing for this idea has never been better and getting better every day. What I am talking about is an idea I heard about a few years ago. It is very simple: Buy a home when your child or grandchild is born or up to 2 years of age and pay it off in 15 years by putting it on a 15 year mortgage. Rent the home out and 15 plus years later deed the home over to your child or grandchild. The child can then continue to rent out a free and clear home to fund their education or sell the home and have a sizeable amout of money to fund a great education at just about any college or university in the country.
The home becomes a tax write-off for you and since your child or grandchild is in a much lower tax bracket, the tax consequence is minimal for them. The reason I say timing has never been better to implement this idea is because of the high number of Idaho Short Sales and Idaho Foreclosures. In many parts of the country just like Idaho one can realistically purchase a home at 70, 80 or 90 percent of real market value.
Look at a real estate value graph that tracks real estate values over time and you can see there are always corrections and plateaus but real estate always goes up in value over a 10, 15 and 20 year time frame and has never failed to do so. It is very feasable that if this Idaho Real Estate market turns around in the next year or two Idaho Real Estate values could begin appreciating rapidly. It is very possible that if you purchased a home today you could see the property double or triple in value in 15 years.
Most Idaho Foreclosures and Idaho Short Sales can be found at Southwest Idaho Real Estate Search. You can give your child or grandchild a lot of things but they will never forget the quality college education you made possible for them.