The Johnson Team at the Muljat Group South has historically held open-houses throughout Bellingham and Whatcom County every week on Sunday afternoons. For you, The Johnson Team’s valued clients, these open houses will provide not only the opportunity to view a home “live” but also to meet one of four dedicated agents. Our agents understand that our clients are as busy as we are, and may not be able to make it to a particular open house during our standard showing days, so if you are interested in viewing any home in Whatcom County, please give us a call at (360) 527-8755 and we’ll work to accomodate your schedule.

Take advantage of the beautiful weather this weekend and com to Johnson Team Agent Mike Bredeson’s open house on Sunday at 9692 Ronald Dr. from 11 to 1 and another open house at 5391 Bellaire Dr. from 2 - 4 pm. Rich Johnson will be hosting an open house in Birch Bay at 5525 Seavue. These homes are immaculate and perfect escapes. If you’re looking for some of Bellingham’s and Whatcom County’s number one neighborhoods, close walking distance to schools and shopping centers, then you need look no further.

Come out and visit The Johnson Team’s open house with Agent Mike Bredeson at 9692 Ronald Drive from 11 - 2. This hilltop retreat will want to make you put your feet up and never leave.

Mike Bredeson will host an open house at 5391 Bellaire Dr, a North-Bellingham gem, from 2 pm to 4 pm on Sunday afternooon.

Venturing up to Birch Bay for a day drive on Sunday? Well, while you’re out exploring, stop in and say hello to Rich Johnson during his Sunday open house at 5525 Seavue from 12 pm to 2 pm. Take  take in the glorious water view at this cozy home just minutes from the city.

Currently this week in Ferndale, WA the Pending Ratio is 13%, which is down 2 percentage points from the 15% ratio posted last week.The pending ratios are the percentage of homes listed that have pending offers on them.

Below is a graph to view the Ferndale Real Estate pending sales trend.

To view the pending ratios in numerical form click here

Short Sales- sales of properties which generate insufficient funds to pay off the liens and closing costs - have become a hot topic in recent months.  They are different from a foreclosure in that the owner is still making the payments in most cases, but they require lender approval to close.  Our thanks to Nicole Walker of Fairhaven Mortgage for contributing the following series of questions and answers regarding short sales.  Her contact information is at the bottom if you have further questions.

Will there be any tax consequences to doing a Short Sale?

Typically, the tax consequences will be less severe vs. letting the home go to foreclosure.  If the home is sold at foreclosure auction, you will still receive a 1099-A for the amount the lender lost due to the sale.  In a short sale, most lenders (except for those that are out of business and not worried about the O.T.S.), will ALWAYS give you a 1099-C for the amount they have lost due to the short sale, if they decide to not seek a deficiency judgment (in almost EVERY case they will opt to send you a 1099-C for the amount of the loss).  We always recommend that you consult with a CPA regarding taxes.  Additionally, we recommend that you become familiar with IRS form 982 prior to deciding the pursuit of a short sale. 

Can the bank give me a 1099-C and report my credit as paid less than agreed?

Legally?  No.  Do they do it anyway?  Yes.  So, you will need to keep that 1099-C as proof that they ‘wrote off’ that loss by essentially ‘giving you the difference of the purchase price and amount owed as income’.  The bank can not legally report ‘paid less than agreed’ to the credit bureaus if they accepted partial payment of the not e and also sent you a 1099-C (income to you) for the difference of that note.  Talk to a Real Estate Attorney for clarification on the subject.  If needed, you or your attorney can contact the bank at a later date about ‘fixing’ their slight oversight in sticking it to you twice. 

Can the bank seek a ‘deficiency judgment’ for the amount they lose by accepting a Short Sale?

In most states yes, but a lot of the time they will opt to send you a 1099-C and write it off as a loss on their books.  The thing that you should know is that VERY FEW lenders will seek a deficiency judgment due to the cost to get the judgment and due to the fact that you probably can’t pay it anyway.  99.99% of the time the lender will send you a 1099-C instead of even worrying about the deficiency judgment, even when they can legally seek that option.Once they have sent you a 1099-C, they cannot seek a deficiency judgment.  They can only do one or the other, not both.

How does a foreclosure versus a Short Sale show up on a homeowners credit?

It depends on how the creditor reports it to the credit bureaus. Generally, a foreclosure will show up as a FORECLOSURE and can stay on a homeowners record for up to seven years. Anytime the homeowner applies for a new loan or has their credith run, the foreclosure will likely show up. More and more employers are running credit for job applicants. A Short Sale is listed as SETTLED DEBT, and is much less harmful to the homeowners credit than a foreclosure. It is not Paid in Full as it would be if the full balance was paid off on the mortgage, but a Short Sale is much better credit wise than a foreclosure. We recommend that you consult a credit company for more information.

What is a Deficiency Judgment?

When a creditor (lender) files a lawsuit against a debtor (borrower) through the courts in an attempt to collect an amount not covered by the value of security that was put up for a loan or installment payments. In other words, if the lender recoups less money than is owed, whether it be via Short Sale or foreclosure, then they have the right to collect whatever the difference is. However, with the right negotiator working on the borrowers behalf, the deficiency judgment rights can be waived.

Why should I do a Short Sale?  If I am going to have to move anyway, why shouldn’t I just allow the bank to foreclose so I can stay in the house rent free for longer?

The main benefit of a short sale is that many in many instances you can still stay in your home rent free just as long as if the house were to go to foreclosure and you will still be able to show your mortgages as “paid in full” vs. “foreclosure”.  The amount of loss to the bank is usually less in short sale, thus the amount of the 1099 to the homeowner in a short sale is less.  You will also want to have an expert on your side dealing with the lender.  If you allow your home to go to foreclosure, there is no one there to help you clean up the mess and pick up the pieces as you struggle with bad credit for the next 7-10 years. 

Nicole Walker

Just when we think we have the income tax laws regarding real estate figured out, the federal government has to go and change them again!  This time the changes come as part of the 2008 Housing and Economic Recovery Act (HERA), H.R. 3221, an attempt on the part of government to help individuals impacted by the current mortgage crisis without spending money to do it.  It’s called “revenue neutral”, which means that they have to collect more money from somewhere to pay for it. 

The additional collection relative to real estate comes from a change in the way profits (capital gains) from the sale of a primary residence are (or are not) taxed.   Currently, if a person sells a house for a profit (capital gain) after living in it as their primary residence for 2 of the past 5 years, there is no capital gain tax due on $250,000 of the gain for a single person or $500,000 for a couple.  They are free to do whatever they want with the money and there are no age restrictions.

Americans are a creative people, particularly when it comes to avoiding taxes, and during the recent boom, this tax provision provided an incredibly easy way to make money.  Let’s look at a simplified example:

A couple owns a house (their primary residence), a vacation home and a rental house. They sell their primary residence, take $500,000 in tax-free profit and move into their rental house.  They live there 2 years, sell it, take $500,000 in tax-free profit, buy a home where they want to retire and move into their vacation home.  They live there 2 years, sell the former vacation home, take the tax-free profit and move into their retirement home.  3 sales, no capital gain tax.

The sale of a former rental does have some tax implications regarding recapture of depreciation, but that has been minimal relative to the potential for gain.

Congress has decided that this scenario does not fit the original intent of the law, which was to eliminate capital gain taxes on the increase in value of a person’s home.  As of January 1, 2009, there will still be no capital gain tax due on a profit generated by the sale of one’s personal home where they have lived for 2 of the past 5 years, with the following exception:  If that home was converted to a personal home from a rental or vacation property, capital gain tax will be due on that percentage of the gain equivalent to the  percentage of time that the house was used other than as a primary residence since January 1, 2009. 

For most homeowners, this change will be of no concern, but many knowledgeable people have incorporated this tax provision into their financial planning .  It has always been important to talk with your financial advisor or accountant  before making a decision to sell property, and never more so than now.

If you are currently thinking about selling and curious what your Bellingham or Whatcom County home maybe worth visit our website at www.JohnsonTeamRealEstate.com

Happy Monday below you will find the new Bellingham Real Estate mortgage and loan information, courtesy of Sidney Stonesypher at People’s Bank Home Loan Center in Bellingham.

Conforming Home Loan Interest Rates Week of August 25th, 2008

(Whatcom County limit $417,000)
30-Year Fixed – Loan Amount $250,000
Payment:$1,540.00 including private mortgage insurance
Points 1.375
% Down: 20%
Rate: 6.250
APR: 6.412

15-Year Fixed – Loan Amount $250,000
Payment: $2,093
Points: 1.375
% Down: 20
Rate: 5.875
APR: 6.141

These rates are available 08/25/2008 for qualifying Fannie Mae
or Freddie Mac approval on home purchases

30-Year Fixed Jumbo – Loan Amount $800,000

Payment: $5.390
Points: 1.00
% Down: 20%
Rate: 7.125
APR: 7.671

Cash out up to 80% Full Documentation Only (90% available)

FHA/VA Loan Amount $250,260.00, purchase price 258,000.00
Payment: $1,544
Points: 1.55
% down: 3%
Rate: 6.125
APR: 6.826

For more information on mortgage rates and different loan programs be sure to contact Sidney Stonecypher at People’s Bank Home Loan Center (360) 676-5880

Johnson Team Real Estate will be hosting two open houses in the Bellingham area this Sunday, August 24. Rich Johnson will be hosting one from 12 pm to 2 pm at 338 Viewcrest Rd and Mike Bredeson will be at 5633 Old Settler Dr. from 1 pm to 3 pm.

Are you interested in a wonderfully expansive home, close to Bellingham Schools, miles of hiking trails and uninterrupted hillside and water views. This charming Edgemoor home migth be the one you have waiting for. On your wa out Chuckanut Dr. stop in a take a peak at this well-maintained home close to city amenities.

This Ferndale charmer might be the one for you as well. Come visit Mike at 5633 Old Settler Dr. on Sunday from 1 to 3 pm. This friendly neighborhood fits just right and is just minutes from Bellingham and Ferndale city centers, close to parks and schools, and the fenced backyard will make you want to stay forever.

When people new the area come into town they are often curious about the different neighborhoods in Bellingham. How many neighborhoods are there? What schools service the different neighborhoods? The questions seem endless. I have created various neighborhood pages on our website to introduce people to all the Bellingham Neighborhoods and what they have to offer, but I have also decided to go a little more in depth and feature a neighborhood each week in a post called “Neighborhood Spotlight”

Below you will find my neighborhood spot light for Alabama Hill. If you have suggestions about neighborhood features or information that you would like included in the Bellingham Neighborhood Spotlights don’t hesitate to let me know.  On to the first neighborhood…..

Alabama Hill Neighborhood

Unlike other neighborhoods in Bellingham the Alabama Hill Neighborhood boundaries are pretty defined by the hill on which it is located. The Alabama Hill neighborhood was primarily developed in the late 1960’s and early 1970’s, although there have been newer homes built on infill lots and a few new streets added in along the way. Many homes on
Alabama Hill boast amazing views over the city of Bellingham and the waters of Bellingham Bay beyond are have lovely well maintained lawns with established foliage.

 Alabama Hill Schools

There are no public schools located directly within the neighborhood, but they are just a short bus ride away. Elementary aged students attend Roosevelt Elementary which serves students in Kindergarten to 5th Grade and is located just ½ mile from the neighborhood’s core. Whatcom Middle School serves students in grades 6 to 8. Squalicum High School, home to the Squalicum Storm is home to students in the 9th to 12th grades.

Alabama Hill Real Estate

The Real Estate prices for Alabama Hill homes are diverse. In doing a quick real estate search today they range in price from $179,900 for a 2 bedroom, 1 bath condominium located on the south side of Alabama Hill to $699,999 for a lovely 4 bedroom, 2.5 bath home with stunning views. To search for homes and real estate in Alabama Hill use this map search function to view homes located exclusively in Alabama Hill.

Alabama Hill  Parks & Amenities

Alabama Hill is within walking distance to many neighborhood amenities. Haggens Food and Pharmacy is located at the bottom of Alabama Hill and is just .6 of a mile from the heart of the Alabama Hill Neighborhood. There are also many parks in the area such as Highland Heights Park, Big Rock Garden Park, and the largest of which is Whatcom Falls Park. Whatcom Falls is located across from Lake Whatcom’s Bloedel Donovan Park along the shores of Lake Whatcom.

To view photos and a complete virtual tour of Alabama Hill check out the Alabama Hill Tour
To search for Real Estate in Alabama Hill visit the Alabama Hill Real Estate Map Search

If you have any other questions on the Alabama HIll Neighborhood leave a question and I will be sure to get back to you!

This Friday and Saturday August 22 & 23rd Lynden Fairgrounds will be playing host to the annual PRCA Rodeo. Come out and join the excitement of watching some on the Northwest’s best professional cowboys and cowgirls.

The show runs about two hours and included, bull riding, steer wrestling, barrel racing, bronc riding and other rodeo shows and acts such as the famous rodeo clowns. The show starts at 7:30 both nights. Tickets are available on the Lynden Fair Grounds Box Office their phone number is (360) 354-7777

For those of you that have never attended a PRCA rodeo, it is well worth the $10 ticket and is perfect for people of all ages! I am hoping to head out there on Saturday night. I will be sure to snap some pictures of the action and post them to the blog next week!
Hope to see everyone there!

Do you ever have those moments or days that make you so thankful for where you live? It seems like this past week has been full of those days for me. Thankful for the natural beauty here, the people and the environment in which I live.

I live out in Everson and our office is in Fairhaven, so I have a bit of a commute everday, around 35 minutes to be exact. Lately I have been switching up my route to see which is the most time effective. I have been taking what I call the “back roads” instead of the main artirials such as the Guide Meridian and the Hannegan Rd and instead opting for the Noon Rd, or Laurel Rd. Each morning while heading into work I pass several people walking their dogs, or retriving the morning paper, each of them always smiles and waves as I pass, something you don’t see everywhere… It’s amazing how something as simple as a smile and a wave can make a day better.

This past weekend I went out and camped along the banks of the Nooksack River out in Acme at the river property of some dairy farmer friends of ours. I woke up, stepped outside and was great by this view of the Twin Sisters and the foothills of Mt. Baker

A couple Saturday’s ago, I was out in Everson enjoying a nice hot day when my Father called and invited me out on his boat with him. Within 30 minutes I went from the farm fields, cows and dairy farms of Everson to the waters of Bellingham Bay where I was greated with a the spectacular views of the San Juan Islands, a pod of whales and dozens of Eagles. What other place can you live where you can go from one extreme to the other in less than a half hours time?

Those of just a few of my “Thankful Moments”… If you have some to share feel free to comment!

There are no Pending Ratios for the week of August 10th. We apologize for the inconvenience but please stay tuned for next weeks pending ratios which will be posted on Tuesday, August 26.