The 16 month-long negotiation is aimed at providing more help for homeowners.  Although many say this is a step in the right direction, it's exactly that. A step.  The settlement will reach many homeowners, but may fall short of expectations.  It's estimated that this settlement will help approximately 1 million homeowners.  49 states agreed to the settlement.  New York and California being the last to agree, possibly because California will receive the lion's share of proceeds. The lone ranger being Oklahoma, who felt the settlement greatly overreached the state's authority, and could be unfair to borrowers who continue to pay their mortgage.

It may come as not surprise that many consumers are still leery of any deal or settlement.  With questionable fees and practices imposed on consumers for years, more than 2 million homes lost to foreclosure, possible insurance fraud, the public has the right to be leery of any settlements. Some call this a stealth bailout for the banks, and with a $2,000 per loan file "penalty" it seems as though the banks might be getting a better deal than we think.  Based on the secondary mortgage market (lines of credit, or second liens) the banks can modify a first position lien making a borrower more likely to pay a second.  Either way, the bank is getting paid. If a borrower defaults on a first position loan, the secondary loan is worth nothing. 

So, now I'm sure you're wondering about the nuts and bolts of the settlement . . . me too.

-Immediate aid to homeowners needing loan modifications now.  The servicers are required to work off up to $17 billion in principal reduction and other modifications.

-Immediate aid to borrowers who are current, but whose mortgages currently exceed their home's value. Up to $3 billion must be provided by servicers in refinancing relief nationwide.

-Immediate payments to borrowers who lost their homes to foreclosure.  $1.5 billion will be distributed to approximately 750,000 borrowers nationwide.

-Nationwide reforms to servicing standards. Better staffing, training, communication with borrowers, points of contact, as well as appropriate standards for executing documents in foreclosure cases, ending improper fees and ending dual-track foreclosures. 

-State Attorney General oversight of national banks. National banks will be required to report compliance with the settlement, and servicers will have to pay heavy penalties for non-compliance.

What do you think?  There are plenty of people out there that think the big banks will fail again as they have in the past, even with the settlement calling for more oversight.

-Mandy Rockefeller, Associate Broker, Realtor, GRI, SFR

"Homeownership rates fall to 66% as downturn nears a bottom"

In USA Today, help boost my confidence. As agents, we all actively watch the market reports, and the foreclosure lists, which have dropped dramatically in 2012. We are running out of foreclosed inventory. Here is my prediction for Teton Valley, as we start to see an up-swing: Buyer's competing for a great deal, before their gone. It's hard to shake that feeling that you are going to miss an opportunity. It drives the stock market in some cases, and I think it's going to drive ours.

What does this mean? Raised rental rates for one. Eventually the supply will run out, whether homes are rented or owned. This is a tremendous opportunity for a first time homebuyer. FHA loans are providing a very small downpayment, and most sellers are paying their closing costs. Interest rates? You know the story. Right now, a first time buyer can pick up a home for much less than the cost to construct, with very little down, at a great rate.

What else does this mean? It may be the time to list. If you can position yourself strategically, as the market spikes, you may see a return that is higher than the market could have been able to bear previously.

Email me. We provide free market analyses for home owners, and I can add you to my mailing list, or just set up a portal you can keep your eye on the market with. tayson@tetonvalleyrealty.com

By Tara-Nicholle Nelson | Broker in San Francisco, CA

At this point in December, it can start to feel like the New Year – along with all our hopes, dreams, wishes and expectations for it – are barreling down on us. Personally, I’m a rabid Resolution-setter, and I have a pretty strong track record of making New Year’s changes actually happen – and stick.  But what I know after years of using the New Year as a great excuse to set and meet some goals is that it’s very, very helpful to get a head start, ramping-up to new habits, behaviors and target goals achievements starting in December.

 

If you’re one of the millions who has an eye on 2012 as the year in which you’ll buy a home (first or not), here are five things you can do now to put yourself on the right path:

1.    Check your credit. Take my word for it: there is no bad surprise worse than a bad credit surprise. Okay, maybe there is one thing worse – a credit surprise you receive while you’re in the midst of trying to buy a home!

Recent studies have revealed that a record high number of real estate transactions are falling out of escrow, and that credit “issues” are a leading cause of these dead deals. Your best chance at catching and correcting score-lowering errors and other derogatory items before they destroy your personal American Dream is to start checking and correcting while you still have time on your side.

2.    Do your research.  The more rapidly the real estate market changes, the more it behooves smart buyers to study up before they jump in.  And now’s the time – you can start doing online and in-person research into topics ranging from:

·    Target states, cities and neighborhoods. Whether you’re relocating or simply trying to narrow down the local districts to focus on during your 2012 house hunt, December is a great time to start your online research into decision-driving factors like tax rates, school districts, neighborhood character and even prices in various areas. Resident ratings and reviews sites like Trulia and NabeWise can help you make the neighborhood-lifestyle match.

Once you narrow things down and start speaking to local agents, ask them to brief you on the local market dynamics, including how long homes typically stay on the market and whether they generally go for more or less than the asking price, so you can be smart about how you search. (And yes, Virginia, there are areas where homes sell for more than asking, even as we speak!)

·    Real estate and mortgage pros. If you don’t already have your pros picked out, now is the time to get on the horn or drop an email or Facebook message to your circle of contacts, asking them for a referral to a broker or agent they love.  Follow up by: checking whether these pros are active in answering questions on Trulia Voices, searching for their name and seeing what sort of feedback on them you can cull from the web, then giving them a ring and launching a conversation about whether you and they might be a good partnership.

·    Short sales and REOs. Distressed property sales are not for the unwary. If you want to target upside down or foreclosed homes, or are planning to house hunt in an area where many of the listings are described as short sales or foreclosures, get educated about what you can expect from a distressed property purchase transaction before you get your heart set on a short sale.

·    What you get for the money. Online house hunting is a powerful tool – especially when it’s cold and wet! But there comes a point in your house hunt where you’ve got to just get out into the actual physical homes you’re seeing online in order to get a strong, accurate sense of what home features, aesthetics and location characteristics correlate with what price points.

·    Mortgage musts. You can read a bunch of articles about mortgages and get yourself pretty far down the path toward qualifying for a home loan, but you can only get a personalized action plan for a smooth road ‘home’ by talking with a local mortgage broker and having them assess your basic financials.  They might say you need to move funds around, pay a bill down or off or produce some sort of documentation from your employer.  And the time to start all that is now.

3.    Fluff up your cash cushion. So, you’ve saved up your 3.5 percent down payment. Perhaps you saved a little extra for closing costs.  Or maybe you’re even one of those uber-aggressive 20-percent-down-ers.  No matter how much you’ve saved, you’ll find that you could use more once you activate your home buying action plan. Mark my words – after closing, you’ll crave extra cash to do some repairs, upgrade a couple of things, buy appliances or even just to hold onto in order to minimize your anxiety about depleting your savings! 

So, if homebuying is on your personal 2012 action plan, don’t go hog wild on holiday gifts. Instead, wait until next year and give yourself the gift of a home.

4.    Shed some stuff.  Sell it. Donate it. Give it to relatives who’ve always coveted it.  Just get rid of it. If you do it before year’s end, you can kill three birds with one stone: (a) getting some cold hard cash to go toward your savings, (b) getting some tax receipts so you can deduct the value of your donations in January, (c) minimizing money spent on holiday gifts for loved ones and these two bonus birds – clearing the mental clutter that physical clutter creates and prepping for your move in advance.

5.    Sit very, very still.  Sometimes, the best way to further our goals is to stop tripping ourselves up.  In that vein, commit right now to refrain from making any major financial moves until you buy your home.  Don’t quit your job to start that personal chef business (yet), don’t pull a bunch of cash out of your savings account (without getting clearance form your mortgage pro first), and don’t start buying cars and boats on credit – even if you do love the idea of putting the red bow on the car you give your wife, like in the commercials.

I assure you, the bow you’ll be able to put on that house or condo will be much bigger, redder and more tax-advantaged!

 

Well, really there isn't a "bad" year at Grand Targhee, is there? 

We can only hope that this coming ski/snowboard season is as light and fluffy as last year, with the remaining effects of La Niña.  With only 23 days standing between the remains of fall and opening day of the 2011/2012 season, make sure you're ready to go when the white stuff starts falling. 

- The local ski swap will be held at the Driggs City Center November 11 & 12.

• $7 FRI 5-8PM, $5 Sat 8-10 AM, $3 SAT 10 AM-4 PM
• Gear Check-in Thurs Nov 10^th 2-6 PM at Peaked Sports, or at Community Center beginning at Noon Fri  & during Swap
• Huge Selection of New & Used  Equipment!
• Peaked Sports will also be there with screaming deals on ski & snowoard equipment, and 50% off last season's winter clothing!
• Proceeds benefit the Teton Valley Ski Education Foundation.

- Grand Targhee is Scheduled to open November 25, 2011.  Based upon the success of last year's shuttle and in continued efforts to reduce environmental impact, Grand Targhee offers several shuttles to and from Grand Targhee throughout the day.  With 5 stops, and run times from 6:40 am to the last bus departing at 11:10 pm, employees, vacationers, and valley residents can all find use for the shuttle.  The cost is:

• $2.00 per Ride Up for walk-ons (exact change only)
• $1.00 per Ride Down for walk-ons (exact change only)
• Punch Passes: $25.00 / 10 round trip rides
• Children 5 and under ride free
• Season Passes: $99.00

You may see the full schedule here, and passes may be purchased online, at Habitat in Driggs, or the Activity Center at the resort.

Early season snowpack in the Upper Snake River basin is making for a potentially promising water year, according to Ron Abramovich, water supply specialist for the U.S. Department of Agriculture Natural Resources Conservation Service in Boise.

"The contrast between this winter and last winter shows the differing effects of El Niño and La Niña on the Upper Snake," Abramovich said. "This winter's La Niña snowpack is already surpassing the near record low April 1 snowpack that last year's El Niño pattern produced. "

Abramovich said precipitation at the start of the new year was 132 percent of average, twice as much as last January.

"Monthly precipitation in October was 146 percent of average, about the same as last year; November brought 122 percent the average amount, nearly four times last November's precipitation; and December brought 133 percent, over twice last December," he said.

Snowpacks range from 120 percent of average in the Hoback drainage, to 128 percent for the area above Jackson Lake, to 145 percent in the Portneuf drainage.

The snow index for the Henry's Fork snowpack above Island Park indicates that snowpacks are the seventh highest out of 51 years, Abramovich said.

"The Snake River above Jackson Lake is similar, tenth highest out of 51 years. Collectively, reservoir storage is normal for the eight reservoirs in the Upper Snake system.," he said.

Jackson Lake has the best storage at 137 percent of average and Palisades is currently the lowest at 78 percent. Streamflow forecasts call for 116 percent of average amounts for the Snake River at Heise and just slightly above average amounts for the Henrys Fork and Portneuf Rivers.

The greatest forecasts are for about 130 percent for the Salt, Gros Ventre, and Pacific Creek drainages.

“With decent reservoir storage and an excellent early season snowpack, La Niña is helping water users breathe easier this year,” Abramovich said. “Hopefully the current pattern continues.”

 * Our source came from Teton Valley News, Tuesday, October 27, 2011.

What if the Buyer defaults on my property?

In Idaho, for most sales under 80 acres, rather than a mortgage, the Deed of Trust is commonly used as security instrument. One of the buggest questions Owner's ask, "What if I have to take my property back?" if buyer default occurs with the Owner Financing, there is a more economical and expeditious 120 day process culminating in Trustees Sale. At Trustees Sale, the opening bid may be the principal balance, plus interest and costs incurred to document the Sale. If no bidder buys the property, it reverts to the original seller immediately. The Deed of Trust also enables immediate re-sale after Trustees Sale, without period for right of redemption by defaulting buyer. (Typicall 6 months) The Deed of Trust is provided for by Idaho Statutes. If default occurs, proper notice of default, required advertisement, and notice for Trustees Sale must be followed by appointed attorney for costs approximating $2,000, paid for by seller. This is money well spent to assure proper legal recovery of balance due or the property in return. On the other hand, with a mortgage, the lender recovery occurs after lengthy and expensive judicial foreclosure, followed by a lengthy period of right of redemption afforded the defaulting buyer. The property cannot be sold during the redemption period. Wyoming law requires the mortgage to be used as security for a loan.

Why is this better for a Buyer, giving my property more opportunities to sell?

Some buyers feel reluctant to negotiate a purchase without utilizing conventional lender financing, though properly documented Owner finance purchase is secure and economical. I strongly encourage the use of a third party (title company) Collection Account, to maintain interest accrual and installment disbursement to seller. Owner Finance also allows the buyer to pay the cost of acquisition over years of equity building, minus the costs associated with institutional lenders. If properly documented, the sellers are as secure as any institutional lender, receive the full purchase price, less ordinary broker and closing costs, and earn interest on the principal balance paid over years. This interest earned increases the seller’s return on original investment. The buyer is assured of obtaining clear title and typically can pay off the entire balance due at any time, without penalty sometimes charged by lending institutions.

What are the tax benefits?

Seller carry-back financing allows the seller to pay capital gains tax (currently 15%) on the gain over their basis (original purchase price), and they pay this tax on the gain only received during any given calendar or tax year. Therefore, the tax on gain is disbursed over the term of the loan, including the year in which net down payment is received. If the sale is at a loss, being less than the original purchase price, there is no gain and hence no tax on gain. The interest income received is typically taxed as ordinary income, again over each of the years of the loan repayment period. Sellers generally cannot use the tax deferred exchange to reinvest proceeds from installment sales.

Reciprocally, the buyer has the benefit of acquiring real property by paying over time, rather than cash at closing, and can be assured of obtaining clear title after paying the full principal balance, plus interest accrued over the term of the loan. The re-conveyance fee and document may be paid for in advance so as to be available for recording upon payoff, avoiding any concern for delays resulting from death or probate of seller.

The benefits for both buyer and seller are as follows:

Buyer Benefits to Seller carry-back financing:

*For raw land, the percent cash down is usually less than for institutional loans

*No appraisal fee (generally $450)

*No loan origination or other loan fees

*Competitive interest rates, subject to negotiation

*Secure documentation and accounting procedures

Seller Benefits to carry-back financing:

*Add flexibility and speed to negotiated sale

*Increasing the number of qualified buyers

*Tax on both gain and interest income are spread over the term of the loan

*Interest income increases the return on seller’s investment

*Secure documentation and accounting procedures

Teton County Fair Board produces an exceptional County Fair and administers the year round use of the fairgrounds while preserving & promoting our western heritage & rural traditions. For more information and a complete schedule of events click on the link below…

Vacation Rental Programs

Pros: minimal wear & tear, opportunity to use the home as you please, supplimental income to help with HOA dues, utilities etc.

Cons: owner pays for utilities year-round, ST rental trends mean that most renters expect amenities like wi-fi & cable, adding to the cost of your investment.

At any rate, the opportunity is here, and it won't last forever. Teton Valley Idaho is a recreational haven. It's reputation is unsurpassed by almost any location in the world. It is surrounded by historic National Parks, Reservoirs, History, Lakes, Ponds, Creeks, Rivers, and a mountain range known for it's cunning beauty.

That being said, what are you waiting for? The opportunities are here, but for how long? Below: Teton Creek Resort Condo, 2 Hot Tubs, 2 Bdrm, 2 Bath, 2 Decks, Furnished. Discounted Management through TVRManagement offered as well.

Call or email Tayson (or take a look at his agent bio at www.tetonhomesandland.com) for a consultation, questions, or a showing, anytime. tayson@tetonvalleyrealty – 208-709-1333