29 Bargin Homes for sale Everett

Posted on January 24, 2012 by JAJohnson

Homepath Homes

720/2011

Everett/ Snohomish County

How does a 3 bedroom, 2 bath, stick built on site, home in Everett with a full payment of only $1622.00 per month sound?

Well I have 29 homes and all have 3 or more bedroom and 2 or more baths in Everett right now. And in Snohomish County have 136 of these homes ready to go today. All with a payment of $1622.00 or less. The rate on a 30 year fixed mortgage is 5.625%, APR 5.826%.

The payment in reality is actually less because your interest is tax deductible and at the end of this discussion I’ll explain how owning a home will impact your federal taxes.

If you are renting in Everett I’ll bet you’re paying more than $1622.00 per month in rent for a decent 3 bedroom, 2 bath home.

These are called Homepath homes and the loan is a Homepath mortgage.

My name is Jim Johnson have been real estate broker currently at Gilmore RE and a mortgage broker currently at Metropolitan Mortgage for over 20+ years.  I always tell home buyers that some of the best deals in real estate are available thru the Homepath mortgage.  Homepath is simply real estate that has been thru the foreclosure process To buy any one of the 136 homes all you need is 5% down or no more than $12,500 and a credit score of 660 or better.

BTW most of these homes have 2+ car garages, a good piece of land, decks, fences and more.

These are not short sales so they can close quickly.

Here are some of the great points about a Homepath loan.

  • No mortgage insurance means lower payments.
  • No appraisal so lower closing costs.
  • Fannie Mae has priced them competitively.
  • To qualify you will need a 660 credit score or better.
  • Just 5% down or more.
  • Down payment can be a gift.
  • These are risk priced mortgages. That means better credit scores and more money down gets a better deal.
  • BTW if your credit is not 620 to 660 or better contact me and I will help you get it there in just a few months.
  • Fannie Mae is giving 3.5% of the purchase price back for closing costs.

 

Everybody knows that the interest on a mortgage is tax deductable but what does that mean? In round numbers for anyone making about $70,000 or more per year (single or married) you are probably in the 28% tax bracket. In simple terms what that means is that out of every dollar you pay in interest you are getting 28 cents back as a tax deduction. I used to be an enrolled agent licensed to represent my clients in tax audits and at tax court.

Call me anytime and we can talk about this.                                  

One last thing the, original offer to purchase must contain certain language in order to make these numbers and loans work so I recommend you have a competent real estate broker write it up. The conditions must be in the original offer of the deal will never work.

I you would like to discuss this my cell number is 425-346-0830

 

 

 

 

 

 

Twitt
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How to buy a 4-plex with a VA mortgage

Posted on December 27, 2011 by JAJohnson

How to buy a 4-plex with a VA mortgage

In Everett WA.

          Right now you can buy a 4plex with a zero down VA mortgage and have the 3 rents make your full payment.  Here’s how it works.

Snohomish County has 11 4plexes priced at or below $375,000 for sale right now. There are another 21 4plexes for sale in King County again priced at or below $375,000. The price is important for several reasons. One is the potential for appreciation when the market finally recovers. And believe me it will recover. I have been in real estate since 1981 and have seen the market go up and down. The demand factors working here will compel prices up as soon as we have a responsible administration in Washington, DC. Another reason is the rental income from 3 units needs to equal or exceed the VA mortgage payment. That put a cap on how much you can pay for the property.

Make sure that the 4plex you buy has all units with at least 2 bedrooms and 1 bath. The more the better for eventual resale and ease of renting in this competitive market.

Here’s how the numbers work. First you need at least a 620 credit score. If you don’t have that contact a good loan officer and see if they can help you get there within a reasonable time frame.  Also you will need to have an annual income of at least $42,000. Next, 3 rents should equal ($750 X 3= $2250) enough to cover the full payment. Right now a fixed 30 year VA mortgage is available for around 4%, with an APR of 4.19%. With zero down the full payment (taxes, interest, principle and insurance) works out to around $2150. But that isn’t the whole story. Assuming you are buying an existing 4plex it will have a rental history. If you have a full 2 years on record you can use that to justify up to 95% of the rental income to defer the VA mortgage payment. If you don’t have 2 years then you can only use 75% of the income to cover the mortgage. That is a built in vacancy factor.  Even though this is a zero down purchase there will be some out of pocket costs at closing. Assume about $1000 to close.

Find a 4plex that doesn’t need a lot of work. They are out there just look. Deferred maintenance is OK as long as it’s just cosmetic. When you make an offer for any multifamily property expect these conditions: 1) you will not be allowed to inspect the structure until you have a signed around agreement. The tenants have rights that must be respected. 2) When you buy with a VA mortgage you are expected to become an owner occupant. So something will need to be worked out for you to take over one of the apartments. 3) You will need to learn the landlord Tenant law in Washington State. You should also find out if your local city has additional laws concerning the landlord / tenant relationship. 4) You should have a complete structural / pest inspection done by a qualified inspector. Be there when it’s done. Expect minor blemishes no property is without them. If there are major problems you can do one of two things. First is bailout. Or you can negotiate with the sellers to see if they will repair the problems.

A VA mortgage requires a VA appraisal. The VA appraisal can be a major hurdle.  The VA is very protective of its buyers. They tend to lowball appraisals. Have your real estate agent do a very through price comparison to determine the market value prior to making the offer. You are responsible for the appraisal so if the property comes in low you will have to pay for it out of pocket.

There is a lot more to this story but I think OJT is appropriate. If you have questions I will be glad to answer them at 425-346-0830. So use that VA mortgage and invest in your future.

Jim Johnson MLO 99405

Broker-Pacific Coast Financial

Broker- Gilmore Real Estate

Twitt
Posted in Everett real estate, Homes for Sale Everett, Real Estate Everett, Seattle Homes for Sale, VA mortgages | Tagged , , | Leave a comment

Pricing a Seattle Mortgage

Posted on February 14, 2011 by JAJohnson

Just what factors go into the pricing of a mortgage here in the Seattle area? They are (not all inclusive): Credit score, ability to repay, desire to repay, job status, type of property, property location, whether property will be owner occupied or non owner occupied, purpose of the loan, documentation level and buyer’s assets. Each lender will assess these factors differently and will possibly add or subtract other factors.
A factor that most borrowers don’t realize is that the lender is making the loan for an investor. This investor may be an individual, an institution, a business, a state or even a nation state. Each investor has different parameters and different objectives. So each loan they do for that investor will be guided by what the investor wants.
Credit score is the first and most heavily weighted factor. If your score is over 720 some lenders will offer a rebate to the borrower for the loan. Scores between 680 and 719 usually will cost nothing and rebate nothing. Scores below 679 down to 640 can cost anywhere between .5% and 1.5% of the total loan amount. Personally I think this is counter-productive and will delay the recovery, possibly for years. Scores below 639 have a very difficult time getting funded. Lenders have told me they will do these loans but somehow they never seem to actually fund them.
The ability to repay usually goes with job status. Lenders want to know you have job stability and through that the ability to repay the loan. Debt ratios play a part in this also. Job status will also include whether the borrower has at least 2 years work history in the field they are in right now. If self- employed, has the borrower had a business license at least 2 years.
Desire to repay is just plain credit repayment history. Has the borrower repay on time and in full. Paying up a debt early doesn’t always help because the repayment needs a history of paying over time to show the pattern.
Type of property: A SFR (single family residence) is best. Residential property is considered up to a 4plex. Lenders give different weight to multi-family properties.
Location of property has some impact. Lenders can no longer red-line certain area and refuse to loan within those boundaries. But as far as individual loans being made in specific areas the lender can refuse to fund a particular loan. Also an atypical property within a certain area will have a hard time getting funded.
Owner occupied properties will always be favored over investment property. Obviously an owner occupied property will have someone who makes their home there and that makes a big difference in the performance of the loan.
Propose of the loan: Cash back will always draw more scrutiny than a purchase loan. In a cash back refinance the lender will ask what you plan to do with the money, that is reasonable and also due diligence.
Documentation of the loan: Believe it or not there are no doc loans out there. Logic tells you that the more documentation a loan has, the more information the lender has, the clearer the picture becomes. So more information makes for a better picture and an easier loan to make.
The last item, not really, is the assets of the borrower. If someone makes $100,000 per year for any length of time they will accumulate assets. The amount and type of assets help paint a picture of the borrower. Assets can also be used to repay a loan.
I hope this discussion of how loans are priced in Seattle helps you when you actually make a loan.

Twitt
Posted in VA mortgages | Leave a comment

Risk Based pricing for Seattle Mortgages

Posted on February 13, 2011 by JAJohnson

In Seattle your mortgage rate when applying for a new home loan, will depend on a number of factors. What is this “Risk Based Pricing” and how does it affect all home mortgage rates? A bank perceives risk as far as repayment of a mortgage as being directly related to a number of factors. They are (not inclusive): Credit score, ability to repay, desire to repay, job status, type of property, property location, whether property will be owner occupied or non owner occupied, purpose of the loan, documentation level and buyer’s assets. Each lender will assess these factors differently and possibly add or subtract other factors.
The single most important factor is your credit score.  Your score is an indication of how you have handled credit in the past and how you will handle it in the future.
So how exactly does a lender price out a mortgage in Seattle or for that matter anywhere else? There are 2 ways to price a home loan. The first is obvious and it’s the interest rate. The second is the cost of that rate.     According to Risk Based Pricing if your credit score is low than you should expect to pay a higher interest rate and higher loan costs. How do they determine what the risk is? Simple, based on your credit score you will be charged a fee that is added to the cost of the loan. Some lenders will charge a fee even to borrows with 720+ scores. If your score is 640 you might have to pay 1-2 points just to get the loan. So if your mortgage is $350,000 than the cost just to get the mortgage is $3500-$7000. Then you still have closing costs on top of that. If your score is 720+ you might have a cost of ¼ point. How will you know? Simple you will never know because even your mortgage broker will not know. The cost will be hidden in the rate sheet and only the lender will know for sure.
These costs are added not by bankers but by bureaucrats. This appears to be another idea formulated by people who are not in the industry and will have negative consequences. Given how fragile the recovery of our economy is anything that makes it harder to get a mortgage is not a good idea. If lenders were responsible for loans that would be best for America. What is really scary is having a politician like Barney Frank in charge of the housing industry. That was the case until this last January. When politicians are in charge of industries that they have absolutely no idea they work we get the worst of all worlds.
So for the foreseeable future mortgage rates in Seattle will be risk based priced.

Twitt
Posted in VA mortgages | Leave a comment

It is cheaper to Buy in Seattle area than it is to rent

Posted on January 30, 2011 by JAJohnson

Yesterday I met with some clients to discuss getting a mortgage instead of leasing another apartment. They are renting a 3 bedroom 1 bath apartment in Everett, a suburb of Seattle WA, for $1210 per month. She called me to ask about finding another rental. I told her that I don’t deal in rentals but maybe if she wanted she could buy a home for the same money as what she rents.
At first she didn’t believe me but I had proof. I went to an agent friend of mine and we searched the MLS for homes for sale in Everett, WA. To no surprise we found many homes for sale below $200,000. Our parameters were minimum 3 bedrooms, 1.75 baths and 1000 square feet and no short sales. Well there was 28 homes in Everett all of them ready to go. Given that her son is on active duty he can buy with his VA mortgage and her as a co-signer. The full payment for a $169,000 – 3 bedroom, 1.75 bath, 1250 square foot home with a 2 car garage is $907 per month. That’s with a 5% fixed 30 year mortgage with an APR of 5.22%. Add taxes and insurance they are at $1097 and that is less than the rent they are paying now.
Next we had to address her poor credit. After pulling a tri-merge credit report we knew she would not qualify for a home mortgage until she got her credit to the magic 640 score. It may take her a few months to get there but so what. Because you see even if it takes 6 months to fix the credit there will still be homes for sale she can afford. And if she didn’t fix her credit 6 months from now she will still be renting and still have poor credit.
Let’s examine this in greater detail.
What does it take to buy today?
First you need a 640 middle credit score. That is not hard to do but may take some professional help. I know of half a dozen repair services that will get you to 640 in a few months. There is a cost but again so what. Imagine what you can save if you have decent credit. Well the next time you renew your car insurance you will save a few bucks, the next car you buy a car you will save a whole lot more and so on. So even if you have to invest $400 to $500 to fix your credit, again so what.
Next you will need a down payment. If you must buy in the city you will need 3.5% down. On a $200,000 home that’s only $7000. That down payment can come as a gift from relatives, your boss or a 401K from savings. On a $175,000 home it’s only $5950 down. How much was your tax refund?
Or you can buy out in the country east of Hwy 9 and get a home for ZERO down. Or if you or someone in the family is a veteran you can buy anywhere for ZERO down.
Interest rates of a fixed 30 year mortgage are in the low %5 to high 4% range.
Given low interest rates and low home prices you simply can’t wrong.
Consult a good loan officer and find out if you can take advantage of this once in a lifetime opportunity of low mortgage rates and low home prices.

Twitt
Posted in mortgage, Seattle Mortgage Companies, VA mortgages | Leave a comment

Everett Real Estate the Hits just keep on Rolling

Posted on February 25, 2010 by JAJohnson
Zillow Home Value Index

Experts wrong again and again and again

Homes for sale in Everett and Everett real estate in general just took another “unexpected” drop. Are you getting as tired of the “experts” being wrong, wrong, wrong again and again as I am. This broken record is not unexpected to me. For almost a full year the number of sales of new homes has dropped. There was a minor blip in October / November 2009 from the new home tax credit but all that did was suck purchases from December and January and put them into October/November. Month after month the “experts” have been wrong. I am whining but why can’t I get a job where I can be paid well and be wrong over and over. In my business and I am sure yours too, you get paid to be right.

Well new home sales PLUNGED to historic lows in January. Just to show you how wrong the MSM (main stream media) is Bloomberg wrote on February 24th that housing would be up. Here is a quote from the story.

“Purchases increased 3.5 percent to an annual pace of 353,000 new homes, according to the median estimate of 71 economists surveyed by Bloomberg News. Demand slumped 7.6 percent in December, the month after the incentive (the tax credit) was originally scheduled to expire.”

That’s right 71 over paid economists predicted a completely wrong scenario.

What really happened was New Home Sales plunged to 309,000 the lowest level since the US Commerce Department has kept records starting way back in 1963. How does this affect Everett real estate and homes for sale in Everett in general? Well think about this, if you can’t sell or will not buy a home then the economy in general will not recover. If consumer confidence doesn’t go up we will never see the “good times” again.

Right now as I write this Obama and the Liberals are arguing about health care. Mr. Obama stop the BS and get us some Jobs. Nancy Pelosi claims that 4 Million jobs will happen if we just pass the Obamacare health bill. What hogwash! If congress passes a bill that lowers payments for healthcare do you think that will increase the number of jobs?

The litany of bad news goes on and on.

  • Inventories went up to a 9.1 month supply. That’s from an 8.1 month supply in December and a 7.9 month supply in November.
  • In January the median price fell again by 2.4% compared to a year ago. And a year ago was a disaster.
  • In January, new home sales plunged 35% in the Northeast, fell 12% in the West, and decreased 10% in the South; they rose 2% in the Midwest.
  • Investors will note that new home sales, historically, correlate to an economic expansion.
  • The “unexpected” drop in new home sales should (but probably will not) raise questions about the efficacy of Obama’s new home buyer credit. You know the one that robs sales from the near future just to inflate the current numbers.

My friends please vote all incumbents out. Get rid of the incompetents that we have running this government.

How will we improve the market for Everett real estate and homes for sale in general? JOBS, JOBS AND MORE JOBS Mr. Obama.

Jim Johnson and comments are always welcome

Everett Mortgage on Line

Twitt
Posted in Everett real estate, Homes for Sale Everett | Leave a comment

Everett Real Estate Federal Tax Credit

Posted on February 22, 2010 by JAJohnson

Another Obama plan that will do nothing for Everett real estate

This information will not have a major impact on homes for sale in Everett and / or Everett real estate in general. The IRS finally got around to clarifying the guidelines for the home buyers tax credits. That’s right the $8000 credit for first time buyers and the $6500 credit for move along buyers.

This is the same credit that many think, myself included, hasn’t made a single additional sale since its inception.

Think about it, if I am on the market for a home for sale in Everett I am going to buy regardless of an $8000 credit. I personally think this credit is just like so many other things the Obama administration has done in that it is completely ineffectual. I think this credit has had no affect on demand for Everett real estate or the prices of homes for sale in Everett.

Because of abuse of the original credit the IRS and Congress revised the program last November. They also extended the credit life and included the $6500 move along portion.

In a few cases IRS and Congress found phony claims and so with typical reaction they punished everyone equally. For a while they didn’t pay legitimate claims. Using a sledge hammer to kill this fly here is what Congress wanted IRS to do. Congress directed the IRS to spell out documentation standards in detail and to install monitoring systems to try to spot fraud upfront. Among the keys to the monitoring system is that all documentation accompanying credit claims must comply with IRS’ detailed rules.

Here is what IRS came up with for anyone claiming the credit:

  • You must fill out the IRS form 5405 (the form is here www.irs.gov). This provides basic information supporting the claim for eligibility, appropriate dates, income information and amount of credit claimed.
  • A copy of the settlement statement called the HUD-1. This proves the transaction actually took place and who was party to it.

There are problems with the HUD-1. IRS wants both the buyer and sellers to sign the HUD-1. In some states that isn’t required. On February 12, 2010 IRS loosened up that requirement and said they will allow whatever the respective state allows. That was very big of them.

Will this spur more sale of Everett real estate, I doubt  but who knows? Will this improve the outlook for homes for sale in Everett again who knows?

The form 5405 does say that both parties must sign the HUD-1 but IRS is now saying don’t worry be happy.

Nationwide, according to estimates by the National Association of Realtors, about 1.5 million repeat purchasers and 900,000 first-timers are expected to apply for credits this year.

Also don’t forget that if you are a repeat buyer you will need to prove that you lived in the home for 5 continuous years out of the last 8. They say property tax records or hazard insurance records or mortgage interest statements can help that. I say that stuff is open to abuse and doesn’t prove a thing.

I personally don’t think the credit will produce one single extra sale of any home for sale in Everett. I don’t think this credit will produce any measurable effect on Everett real estate at all.

Jim Johnson and comments are always welcome.

Everett mortgage on line.

Twitt
Posted in Everett real estate, Homes for Sale Everett | 6 Comments

Jobs key to Recovering Value of Everett Real Estate

Posted on February 20, 2010 by JAJohnson

Again the Law of Unforeseen Consequences strikes at the heart of Government Actions

Or how to not think something through.

More wasted tax dollars and how that affects the market for homes for sale in Everett. Don’t expect the feds to help improve the outlook for homes for sale in Everett or the Everett real estate market in general. To put it politely they can’t find their behind with both hands at the same time.

Let’s take the new the weatherization plan, it’s part of the porkulis or stimulus plan, and your wasted $500,000,000 so far. (PS that’s a drop in the bucket) This is part of the Obama administrations $5,000,000,000 ( 5 BILLION DOLLARS) green jobs program that’s going to create 87,000 new jobs.

Fat chance.

It was going to make 593,000 homes more energy efficient, again fat chance.

Well the General Accounting Office has declared the program woefully behind. In fact about 98.24% behind and it may never catch up. Now how does that affect the market for homes for sale in Everett or Everett real estate in general? It’s those 87,000 green jobs that will not materialize. Or if they do these jobs will be temporary and not really help. I keep harping on this but without real private sector jobs there is no recovery. And “green” jobs that don’t last will not help either anyway.

Now I don’t know about you but if I wanted to weatherstrip my home I wouldn’t need to spend $8432 to do it. Nor would it take 5.9 guys to do it. But consider these statements directly from Joe Biden and Mr. Obama himself. The plan is not to insolate but to weatherize the homes. No new windows or new doors but simple stuff, just caulking and weather stripping only.

If I project to weatherize 593,000 at a cost of $5,000,000,000 then I am going to spend $8432 per home. If I am going to create 87,000 temporary green jobs then I will use 5.9 guys per home. This is typical of a government boondoggle that hasn’t been thought through. And sad to say some of you trust this government to do healthcare properly.

Why has it taken so long to get started you might ask? Again assuming that government can do anything right is an oxymoron. I defy you to name one thing the government does well outside of the military. And even the military has its problems if you are keeping up with current events.

It seems that a depression era law (the Davis-Bacon Act) requires that the Labor Department pays the going wage rate in every single county in America, and that’s about 3000 different counties. So after screwing around for almost a year they are finally starting to work.

If you remember a few months ago I had came out with my ideas on how to curb the bloated governments that are drowning us in red tape. If you recall I wanted term limits on every elected position and a sunset of every law and regulation for city, county, state and federal agencies. Term limits prevent absolute power from corrupting these eminently corruptible politicians. Sunsets would keep unelected bureaucrats from enacting more and more regulations that are killing our entrepreneurial spirit. Like the EPA declaring CO2 to be a greenhouse gas. The same CO2 that is necessary for life on this planet. Unelected bureaucrats are strangling our economy with a blatant power grab. Thank God Texas is fighting back, because Washington State with our political hacks would never do that.

A friend pointed out that if the government has an energy audit on your home they could come along and say your home must be upgraded or we will fine you. Given how starved for new revenue sources that isn’t as farfetched as it sounds.

As I started out I will end. There will be no recovery for Everett real estate nor will the market of homes for sale in Everett recover until we have real private sector jobs.

Jim Johnson and comments are always welcome.

Everett Mortgage on Line.

Twitt
Posted in Everett real estate, Homes for Sale Everett | Leave a comment

How to finance and refinance Everett real estate.

Posted on February 19, 2010 by JAJohnson

Why Yield Spread Premiums can be a good thing for the consumer

YSP (yield spread premium) or also called rebate is very useful tool in financing or refinancing Everett real estate. For example I just did a refinance using an FHA mortgage. I used the YSP to pay for my clients closing costs. I saved him a ton of money, and didn’t take a bunch of his equity to make the loan.

I used the YSP to save my client money, lower his payment and save his equity. Some politicians want to eliminate the YSP because they don’t understand its uses. I am writing this blog to try and explain how this is extremely useful to the consumer. When you limit the consumer’s choices you always increase his costs.

I will try to keep the technical stuff and the numbers down but in a discussion like this it is hard to do. But here is how an FHA mortgage with a rebate can be used to refinance Everett real estate.

My client has a $425,000 payoff. His current payment is $3331.00 and that is principle, interest, taxes and insurance. He has an adjustable loan and his payments are going up. So he asked me to see if I could come up with a way to lower his payments and keep the cost down.

An FHA mortgage is the only one he qualifies for because of current market conditions. You see just like everyone else he has lost equity in his home due to market conditions. FHA mortgages allow a refinancing of your Everett real estate up to 96.5% of it’s current value.

We came to the conclusion that the value of his property is around $440,000.  At that value if I am using an FHA mortgage we are limited to a maximum of $430,100 as a new loan amount. If I could not use a YSP to pay for the loan costs I could only do an FHA mortgage if we could get an appraisal for $445,525. We might get that value and then again we might not.

I was able to get him a new loan for $422,000 by using the rebate (the YSP) and paying my clients closing costs with it. His new payment is $3017.95 and saves him $313.05 per month. With all fees he has a payback of 14 months. His loan is a fixed 30 year FHA mortgage at 5.375%.

If we had to get his loan without any rebate (YSP) his new interest rate would be lower at 4.875%. And his new loan would have had a monthly payment of $2964.63 per month but with a monster catch. You see his new loan amount would have been $435,500 and the payback period would have been over 49 months.

So you see here with the YSP we have a new loan at a lower loan amount and a slightly higher interest rate. But we didn’t take anywhere near as much of his equity to pay for the loan costs.

We saved him $13,500 in equity by using the rebate or YSP to pay for the loan costs.

YSP or rebate is a great tool for refinancing Everett real estate and in combination with a FHA mortgage can save you lots equity.

Jim Johnson and comments are always welcome.

Everett Mortgage on Line

Twitt
Posted in Everett real estate, FHA Mortgage | 2 Comments

Everett Mortgage-Why are loan Mods so hard to get

Posted on February 16, 2010 by JAJohnson

Everett Real Estate May Never Recover

Ever wonder why loan Mods are so hard to get?

Wow, with sweetheart deals like this Everett real estate may never recover its value. If the value of homes for sale in Everett doesn’t recover then the entire economy will not recover any time soon.

Have you heard about the sweetheart deal the FDIC gave 1 West Bank? That is the bank George Soros owns. You know he’s the guy who bankrolls the Democratic Party. I well remember the old adage it’s who you know.

Well back in July of 2007 IndyMac Bank failed. 1 West Bank bought it in March of 2009. The FDIC gave 1 West a deal like you can’t believe.

1 West paid 70% of the value on all mortgages and 58% of the value of all HELOCs.  The FDIC guaranteed 1 West 80-95% of all losses for 1 West.

Everett real estate is having a hard time recovering because of foreclosures and short sales. The value of home for sale in Everett is suffering because of the same reasons. Ever wonder why it is so hard to get a loan Mod? Well here is why.

This is an actual example of why the FDIC bureaucrats should be fired, every damn one of them.

A homeowner owes $478,000 and with lates fees and missed payments the total due 1 West is $485,200. 1 West paid (70% of the $478,000) $334,600 for this mortgage. The homeowner can’t get a loan mod because IndyMac and 1 West wouldn’t allow it. The homeowner gets an offer of $241,000 and 1 West approves the sale.

You take the original loan amount plus late fees and missed payments of $485,200 less the $241,000 and you get a loss on sale of $244,200. FDIC guaranteed 80% of the loss so they pay 1 West ($244,000 X .8) $195,360.

1 West got $241,000 (short sale) plus $195,360 (FDIC loss guarantee) = $436,360 for the house that they paid $334,600 for. So 1 West gets a profit of $101,760.00. To add insult to injury 1 West got the homeowner to sign a note of an additional $75,000. Multiply this over 1000’s of homes and you see why there is no incentive to do a loan modification for anyone. There is much more profit in a foreclosure or a short sale. Now you see why Everett real estate is having a hard time recovering. Now you see why the market for homes for sale in Everett is so soft.

Do you see why 1 West can sell any home for any price because they are guaranteed a profit on every home mortgage they bought? They have no risk what so ever on any mortgage. Now do you see why lenders make loan mods so hard to get. There is no incentive to make a loan mod and every incentive not to.

To top even that 1 West will only get these payments if the show a $2.5 Billion loss. So guess what, they don’t do loan mods because they will not get paid by the FDIC if they do.

I will leave you to figure out who is actually paying George Soros and 1 West to screw up the entire American economy.

Now you can see why Everett real estate may never recover. Now you know why the market for homes for sale in Everett is so soft.

Want to watch a video on this? http://www.thinkbigworksmall.com/mypage/player/tbws/23622/1017333

Jim Johnson and comments are always welcome.

Everett Mortgage on Line.

Twitt
Posted in Everett real estate, Homes for Sale Everett | 7 Comments