Recently, when we think of a distressed property, we think of an owner who is behind on their payments or who owes more on their home than it is worth. Other types of distress can cause a property to be sold at auction…as noted in the following question:
I just saw a notice in the classified section of the newspaper saying that my neighbor’s property is going to be sold at auction to pay the back taxes. Can I just go pay the taxes?
Yes, you can…and if you would do it to save the property for your neighbor, I must say that is an incredibly nice thing for you to do. Paying the taxes will remove the lien. On the other hand, if your idea is that you can pay the taxes and get the property, you need to hold off for the auction. The process goes something like this:
In the State of Washington, when a property owner is 3 years delinquent in tax payments, the County in which the property is located can give notice to the owner, through mailed and published notices, that they intend to foreclose on the property unless the owner brings the taxes current. The notice process is defined by law as to when and how notice must be given. If the owner does nothing, the property is auctioned on the courthouse steps (in Whatcom County, it happens inside the courthouse rotunda) on the designated Friday morning. Buyers must have cash or its equivalent. Any amount generated more than the taxes due and foreclosure fees is paid to the owner. It is also interesting to note that the same process can be initiated by a homeowners association for non-payment of dues.
In both cases, there is no title insurance provided (a buyer might want to check the title ahead of time and buy a title policy), there is no opportunity to look inside any structures and there is no disclosure of property condition, so there are some risks. In addition, it may be possible for the owner to come back for up to a year after the sale and reclaim the property upon payment of all the costs.
It may be a screamin’ deal, but buyer beware!
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Hope everyone had a great weekend! Every week we track the number of homes on the market that have offers on them and those that do not and create a ratio we call Pending Ratios.
As of Saturday August 7th , the pending ratio in Bellingham was 18% . Pending is the time frame between when an offer has been mutual accepted between the buyer’s and the seller’s of the home and when the title actually transfers hands. This give the buyer’s time to get the financing, do inspection, review the title reports and more.
To view a complete history of Whatcom County Pending Ratios or for other real estate statistics don’t hesitate to contact The Johnson Team at (360) 303-2734 or by email at Info@JohnsonTeamRealEstate.com
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Interest rates are incredible right now – a radio news program today said they are at a 50 year low.
A financing tip from Sidney:
You Must Disclose All Debt: When making application for a home loan, be sure to list ALL debts to creditors – it’s a good idea to take a look at your latest bank statement so that you don’t forget automatic payments. Sometimes a brand new line of credit, credit card or car loan may not show up on your credit report for a while, but it will show up as a credit inquiry. Many lenders are now requesting a letter from the borrower to explain any recent credit inquiries and resulting balances owed. If any additional liabilities or an increase in existing credit are found during the loan application process, the lender is required to re-qualify the borrower based on the new information. Re-qualification may impact the interest rate, points & borrower’s ability to qualify based upon current program guidelines. One big No-No…don’t buy furniture for that new house on your credit card before you close on the house…you may not have a place to put it.
Home loan rates as of Wednesday, May 26 are in the following table. For more details, or a custom quote, contact Sidney Stonecypher at People’s Bank, 360-676-4597 or sidney.stonecypher@peoplesbank-wa.com. Remember that many variables come into play in determining the rate a lender will give a borrower. If you are getting a rate quote from a lender who does not have all your information, that rate may not be real. What with the low rates, it is a great time to buy a house!
Down Payment
Interest Rate
APR
Credit Score
Points
Conventional 30 yr fixed
20%
4.50%
4.653%
740
1
Conventional 15 yr fixed
20%
4.00%
4.205%
740
1
Jumbo 30 yr fixed
20%
6.00%
6.112%
740
1
FHA 30 yr fixed
3.5%
4.375%
4.787%
580*
1
VA 30 yr fixed
0%
4.375%
4.760%
*
1
*Score requirement will vary by lender
If you have other questions about financing, don’t hesitate to contact us and we will get you the answer. If you are wondering, other people probably are as well. For general financing and market information, check out our website.
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Rates across the board dropped this week, anywhere from .125% to .25%. The soft economy does have some upside.
A financing tip from Sidney:
Interest Only Loans are Still Available: Fannie Mae will still buy interest only loans (which means lenders will still offer them), but there have been some changes. Refinance loans with cash back to the borrower or loans on investment properties are no longer eligible for interest only. Primary residence loans are available with interest only payments, provided that the borrower has a credit score of at least 720 and the loan to value ratio is no more than 70% (the appraisal must come in at least 30% higher than the amount of the loan). Other investors will also do interest only loans on these terms, with one additional requirement: the borrower must have verifiable reserves of at least 24 months of payments.
Home loan rates as of Thursday, May 20 are in the following table. For more details, or a custom quote, contact Sidney Stonecypher at People’s Bank, 360-676-4597 or sidney.stonecypher@peoplesbank-wa.com. Remember that many variables come into play in determining the rate a lender will give a borrower. If you are getting a rate quote from a lender who does not have all your information, that rate may not be real. What with the low rates, it is still a great time to buy a house!
Down Payment
Interest Rate
APR
Credit Score
Points
Conventional 30 yr fixed
20%
4.50%
4.641%
740
1
Conventional 15 yr fixed
20%
4.00%
4.164%
740
1
Jumbo 30 yr fixed
20%
5.375%
5.486%
740
1
FHA 30 yr fixed
3.5%
4.25%
4.664%
580*
1
VA 30 yr fixed
0%
4.25%
4.635%
*
1
*Score requirement will vary by lender
If you have other questions about financing, don’t hesitate to contact us and we will get you the answer. If you are wondering, other people probably are as well. For general financing and market information, check out our website.
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The expected jump in real estate loan rates has not materialized – they just keep creeping up and back, which is good news. This week FHA & VA rates dropped just a tad…every little bit helps!
A financing tip from Sidney:
Mortgage Fraud. It’s a phrase that has been used a lot over the past months, and it is a very big deal (think full and immediate payment of the loan, six-figure fines & jail time), but it may actually consist of very small actions. A little hedge here, a little puff there, a little something that the loan officer “doesn’t want to see”… they are all loan fraud, and if your loan officer or real estate agent suggests they are “okay”, don’t believe them. The bottom line is that the lender needs to know everything about your financial situation and the details of the transaction, and it is your responsibility as the borrower to make sure they do.
Home loan rates as of Wednesday, May 5 are in the following table. For more details, or a custom quote, contact SidneyStonecypher at People’s Bank, 360-676-4597 or sidney.stonecypher@peoplesbank-wa.com. Remember that many variables come into play in determining the rate a lender will give a borrower. If you are getting a rate quote from a lender who does not have all your information, that rate may not be real. What with the low rates, it is still a great time to buy a house!
Down Payment
Interest Rate
APR
Credit Score
Points
Conventional 30 yr fixed
20%
4.75%
4.86%
740
1
Conventional 15 yr fixed
20%
4.250%
4.406%
740
1
Jumbo 30 yr fixed
20%
5.3750%
5.494%
740
1
FHA 30 yr fixed
3.50%
4.6250%
5.041%
580*
1
VA 30 yr fixed
0%
4.625%
5.016%
*
1
*Score requirement will vary by lender
If you have other questions about financing, don’t hesitate to contact us and we will get you the answer. If you are wondering, other people probably are as well. For general financing and market information, check out our website.
Share and Enjoy:These icons link to social bookmarking sites where readers can share and discover new web pages.
Hope everyone had a great weekend! Every week we track the number of homes on the market that have offers on them and those that do not and create a ratio we call Pending Ratios.
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