Randall Filbert- Filbert Real Estate Team's Blog

Fannie/Freddie NEED to Spread their REOs out among Various Listing Agents!

Randall Filbert- Filbert Real Estate Team (Filbert Real Estate Team) — Sat, 20 Nov 2010 11:21:54 -0800

If Freddie Mac and Fannie Mae REALLY want to liquidate their REOs they should list their properties with agents who can manage them! Fannie/Freddie NEED to Spread their REOs out among Various Listing Agents!

Via Natalie Filbert - Boise Property (Boise Property):

Has this happened to you?!?

Lately I have had clients make offers on Freddie Mac REOs with the local Freddie Mac REO listing companies. In Boise, as in many communities around the country, local brokerages have a virtual monopoly on listing properties for Fannie Mae and Freddie Mac.

The overwhelming number of REOs dumped onto our market has completely overwhelmed these listing agents. Of course, some of these REO agents are really great. Others agents though.... Just try getting a response from them within a week or two! We have one offer in on a Freddie Mac property and have not had a response from the listing agent for over three weeks! Turns out they recently received approximately 50 new Freddie Mac REO listings. Seems to me that this will merely reduce their poor service and slow responsiveness to non-existent!

It stands to reason that if Fannie and Freddie really do want to liquidate their massive inventory, then they need to spread these listings out over many more agents so that no one individual is overwhelmed. If you have had similar frustrations please comment so we can raise awareness of this issue and help facilitate positive changes in this industry!

Think you aren't qualified to buy a home? Maybe you should get a second opinion!

Randall Filbert- Filbert Real Estate Team (Filbert Real Estate Team) — Fri, 08 Jan 2010 11:43:38 -0800

Think you aren't qualified to buy a home? Maybe you should get a second opinion!

The media has done a great job of putting the word out that the real estate market has suffered during the last 2 years. What they haven't done is talk about what a great buying opportunity this has created for many potential home buyers across the country.

With interest rates still very low (but expected to go up this year), the $8,000.00 First Time HomeBuyers Tax Credit (which has been extended and now includes up to $6500 for certain move-up buyers who have owned their primary residence for the last 5 years), and low sales prices in most communities, the time has NEVER been better to buy a home!

In addition to these advantages, many communities are offering additional incentives thru community revitalization programs in an effort to improve economic and housing conditions in their local markets.

With interest rates at all time lows and deals on properties everywhere, you can't afford not to buy! The real estate market is full of Short sales and Foreclosures making NOW THE TIME TO BUY!

Happy house hunting!

Author: Randall Filbert, MPA www.LendingIdaho.com www.FamilyGuideToFinances.com

Credit Scores...More Important NOW Than Ever!

Randall Filbert- Filbert Real Estate Team (Filbert Real Estate Team) — Tue, 29 Dec 2009 13:23:43 -0800

As the availability of credit continues to be tight (it could get tighter!) having a good credit score is now more important than it has ever been and having a low credit score will carry with it a variety of costs both tangible and intangible. Think about it from the bank's perspective, many people want to borrow money from you and you have limited funds to lend so you are going to choose to loan your money to people who demonstrate lower risk variables (ie. those with a longer history of responsible repayment and thus maintain higher credit scores).

Of course there is the tangible cost of obtaining credit that costs you, the borrower more because of the higher interest rates and fees associated with these loans. On a home purchase, this can amount to 10's of thousands of dollars over the life of the loan.

There are also less tangible costs like 'opportunity costs'. Simply not being able to purchase a home in this favorable buyer's market because your credit score does not make the grade could potentially cost you the 'opportunity' to own a home and thus benefit from all of the advantages of being a homeowner. This missed opportunity could also equal 10's of thousands of dollars over your lifetime. Missed appreciation, fewer tax credits, etc.

The credit crisis is expected to last for some time and recovery will be slow. This means that bowwers with less than good credit scores (those below about 680-700) will continue to have a more difficult, more expensive time obtaining the credit thet they need.

Focus on building your credit folks....it'll cost you big time if you don't!

Author: Randall Filbert, MPA www.LendingIdaho.com www.FamilyGuideToFinances.com

How do We STOP the Foreclosure Process?

Randall Filbert- Filbert Real Estate Team (Filbert Real Estate Team) — Mon, 14 Dec 2009 10:58:18 -0800

Foreclosed properties are no good for anyone (except perhaps buyers). Banks lose money, homeowners lose their homes, neighbors and neighborhoods lose value and equity. Many homeowners see their dream of owning a home go up in smoke.

How do we in the Real Estate industry help stop this snowball from tumbling out of control?

The road to foreclosure is long and there are many obstacles in the way. It can take a year or more for a property to go into foreclosure status. These obstacles create opportunities for us to help our clients work out a solution before the foreclosure process is complete.

- Get involved with your clients as soon as you sense trouble.

-Make them aware of options including Short Sale, Loan Modifications, house swapping, bringing in a roommate, renting their house out and moving in with family.

There are many variables looming over the housing market to suggest that recovery (for most areas) is still a way away. The unemployment rate is most often overlooked by the so called "experts". If homeowners don't have jobs, then foreclosure is inevitable. We must all focus on creating jobs with which mortgage loans will be repaid thus slowing the foreclosure rates!

Lobby your Senators and Congressman to encourage the government to focus on creating jobs. They've spent alot of time lately focused on Health Care, Bank Bailouts, Auto Maker bailouts, etc. If we don't do something to turn this housing market around this is what could happen:

Author: Randall Filbert, MPA www.LendingIdaho.com www.FamilyGuideToFinances.com

This blog's intention is to provide inspirational stories as well as historical accounts and insight into matters concerning the mortgage and real estate markets. These are my opinions and should not be regarded as factual data.

A History of Mortgage Rates...Why NOW is the Time to Buy.

Randall Filbert- Filbert Real Estate Team (Filbert Real Estate Team) — Tue, 08 Dec 2009 15:13:36 -0800

Mortgage interest rates are again at an all time low and, with housing prices expected to increase slightly in 2010 (analysts have predicted 3-4%), a generous Tax Credit available to many home buyers, Now may be the best time to purchase a home. Take a look at the historical chart below and see how national average Mortgage interest rates have fallen over the last several years.

These low, fixed rate interest rates increase a buyer's purchasing power without the volatility of an Adjustable Rate Mortgage. While it is very difficult to predict interest rates (especially for me as my Crystal Ball no longer works!), most indicators and economists suggest that interest rates will begin rising soon. There are also indications that some loan programs, including FHA, will begin tightening their lending criteria even more in the coming year. The combination of these factors will, most likely, create a less favorable environment for many home buyers to qualify to purchase a home.

I strongly encourage prospective home buyers to act Now rather than to wait for conditions within the housing market to deteriorate any more thus making it more difficult to buy a home.

If you are a real estate agent share this information with your clients who may be on the fence about buying now. You will be educating your clients and helping them avoid a potentially costly mistake by waiting.

Happy house hunting!

Author: Randall Filbert, MPA www.LendingIdaho.com www.FamilyGuideToFinances.com

Are You Financially Fit? Give yourself a Financial Physical

Randall Filbert- Filbert Real Estate Team (Filbert Real Estate Team) — Thu, 19 Nov 2009 11:17:17 -0800

Are You Financially Fit? Give yourself a Financial Physical

Just like an "annual physical" with your doctor, it is equally as important to get a "financial physical" to make sure you are using your money to your optimum advantage. The following observations and questions are designed to get you thinking-thinking about how you can reduce your living expenses, improve your cash flow, pay down debt, or put money away for a rainy day.

Every household budget has some room for improvement but they can vary based on your needs, family size, lifestyle, etc. First, start by reviewing your monthly expenditures to find areas where you can trim some fat.

Recently I looked at my monthly budget and found several ways to reduce my monthly expenses and thus, create more opportunity for reallocating this extra cash flow for optimal usage. I examined my utility bills and decided that I could save quite a bit of money by reducing certain services. I saved $50 per month by reducing my family cell phone plan. I found that I had not been using as many minutes as I was paying for and in fact was "rolling over" 3-4000 cell minutes every month. As long as I keep an eye on monthly usage and don't go over my limit, I should be able to maintain this savings.

Next, I cancelled my home phone land line, which was primarily used to send faxes. This saved me about $40 per month. Now, I simply scan the documents that I used to fax and email them. I also found that by reducing my cable TV plan to a lesser package I could save another $30 per month and not miss a thing. I then reduced my home Internet service from a "super high speed" package to a standard high-speed package and saved an additional $25 per month. Truth is, I never noticed the difference in Internet speed anyway....

Natural Gas costs have been reduced in our area recently and, together with reducing the thermostat a degree or two, I expect to save an additional $25-30 per month. So far, the total monthly savings for my family amounts to about $180-$200 depending on the month. I have put this extra cash flow towards paying down debt and thereby reducing my interest charges every month (thus saving more money!). I just made $200 magically appear in my budget!

There are a few areas in my family's budget that I hope to address in the near future (namely, our health club membership that costs $75 per month and no one in the family really uses). I will have more on this topic in the coming weeks because I am seemingly addicted to finding new ways of saving money.

What can you do to reduce your living expenses and optimize your monthly budget? If you have any ideas about saving money, please share them with us!

Author: Randall Filbert, MPA www.LendingIdaho.com www.FamilyGuideToFinances.com

Tentative agreement reached on extension of Tax Credit for Home Buyers.

Randall Filbert- Filbert Real Estate Team (Filbert Real Estate Team) — Thu, 29 Oct 2009 13:25:01 -0700

Good news! It appears we are getting closer to an approved extension of the Home Buyer Tax Credit. According to Foxnews.com this morning the Senate reached a tentative agreement to extend the tax credit for first-time home buyers.

Fox says "The agreement would extend the existing credit for first-time home buyers, worth up to $8,000, while offering a new credit of up to $6,500 for some existing homeowners, Senate aides said. The reduced credit would be available to all home buyers who have been in their current residence for a consecutive five-year period in the past eight years."

The success of the the current Tax Credit cannot be overlooked based on the higher than expected GDP numbers announcement today. Even though the portion of the GDP growth that can be attributed to the Home Buyer Tax Credit may be misleading because of the loss in tax revenue, the fact that it has helped the housing market get poised for a recovery is hard to refute.

According to Fox "The new provisions are aimed at broadening availability of the credit beyond first-time buyers and giving the weakened real-estate market a bigger boost while preventing real-estate investors from benefiting. The credit would be extended from its current expiration date of Dec. 1 to all contracts entered into by April 30, and closed before July 1. It is expected that income limits on people claiming the credit would be increased to $125,000 for singles and $250,000 for couples, from the current $75,000 and $150,000, aides said. The credit phases out for people making more than those amounts."

"While Senate lawmakers appear to have reached a deal on the substance of the tax credit, they are still at odds over how it would be brought to the Senate floor. Senate Majority Leader Harry Reid (D., Nev.) hopes to add it to a bill currently on the Senate floor to extend federal unemployment insurance benefits. But agreement on that hasn't been finalized" Fox states.

Let's all keep our fingers crossed that this will be resolved soon and that the momentum that we are building in the housing market, albeit slow, will continue! In my opinion, if the Govt. is already speanding the money we don't have, it is better used in the housing market where there is a trickle down benefit to multiple sectors of the economy, ie. retailers, building material suppliers, tradesmen, etc., rather than the cash-for-clunkers program which benefited few.

Author: Randall Filbert, MPA www.LendingIdaho.com www.FamilyGuideToFinances.com

The Evolution of the Home Mortgage as a Financiall Planning tool.

Randall Filbert- Filbert Real Estate Team (Filbert Real Estate Team) — Tue, 27 Oct 2009 12:23:48 -0700

Financial strategies evolve with the direction of the economy. Back in the early 90's it was considered a good financial strategy to prepay your home mortgage. Many financial experts considered it a good return on your cash - to pay down a mortgage that may be as high as 10%, rather than invest in more volatile equities. Afterall, the certainty of saving 10% by prepaying your mortgage is just as good (perhaps even better) as earning 10% on a stock and comes without the volatility of the stockmarket or the capital gains taxes.

However, with many home loan rates at historical lows (most range between 4.5% and 5.5% these days) there are now better places to stash your cash. The best places to start are with your credit-card debt and by feeding your retirement account. By paying down your higher rate credit card debt you are, in essence, earning a higher return on your cash than by prepaying your mortgage. The fact is, that if you have a credit card that charges you 19% (these rates have been going up) and by re-allocating excess cash flow towards paying the balance off, you avoid paying that interest and therefore are essentially 'earning' 19% on your money. I'll take a 19% return over a 5.5% return any day!

Depending on the amount of consumer debt that you carry and your availability to excess cash, the process of paying down debt can take quite some time. It may be worthwhile for you to consider simultaneously starting a savings plan that will help prevent you from falling back into the credit card cesspool.

Once you've conquered your debt, build a rainy-day fund and then buy enough disability and life insurance to protect your family from unforseeable health set backs. Then it's time to look at the mortgage. Got a fixed 6.5 percent rate? You coulde probably do better, in the long term, in a low-cost diversified mutual fund. Finally, if you got trapped in one of those variable-rate, interest-only, negative amortization mortgages that were being pushed in the early part of this decade, prepay as soon as possible by refinancing to a more stable loan and reallocating your excess cash elsewhere.

Consult a qualified Financial Advisor to discuss your specific situation.

Author: Randall Filbert, MPA

www.LendingIdaho.com www.FamilyGuideToFinances.com www.BuyandSellinIdaho.com

Pay attention to your CREDIT!

Randall Filbert- Filbert Real Estate Team (Filbert Real Estate Team) — Tue, 20 Oct 2009 13:23:42 -0700

Your credit score is a three digit number ranging from 350 to 850. Roughly 50% of consumers have a score above 720. The higher your credit score is, the lower you can expect your interest rates and fees on loans to be.

Your credit report indicates to lenders how you have handled your credit in the last 24 months. Credit scores are recalculated every time a lender requests it. If you’re 30 days late with a payment and your creditor reports it, a score in the mid 700s can drop somewhere around 50-100 points or more! It can happen overnight and literally take years to recover from.

There are few hard and fast rules pertaining to how much you can bring your credit score up. Generally speaking, a low score can be pulled up over time by doing the right things but it is a slow process. Your score might move up just 30 points in a year even if you are doing the right things.

Approximately 25% of credit reports contain at least one serious error and closer to 80% contain at least a minor error. You should check your report at least once a year (preferably twice a year) for outdated data, paid-off loans listed as due, or money owed by someone with a similar name to yours. It can easily take up to six months or longer to get an error fixed.

Five ways you can raise your credit scores:

1. Pay your bills on time. Payment history affects about 35% of your score. To ensure timely payments set up automatic payments online, keep stamps on hand, and maintain your budget. I recommend setting up an automated bill paying system that will prevent you from missing a bill.

2. Keep credit balances at 30% of your credit limit or lower. Around 30% of you credit score is based on how much credit you have access to and how much you are using.

3. Do not cancel credit cards to raise your score. Roughly 10% of your score is based on how long you have had your accounts opened. The longer the account has been opened, the more 'value' assigned to you by the credit scoring models.

4. Do not apply for too many credit cards. About 10% of your credit score is determined by the number of times lenders request your credit reports. Multiple requests could indicate to the credit reporting agencies that you are desperate for credit or that you have lost your job.

5. Be careful with the types of credit you use. About 10% of your score is based on the types of credit you are using. Secured loans such as car loans and mortgages are generally less risky because they are collateralized and unsecured loans such as student loans and credit cards are considered riskier in the eyes of credit companies.

Pay attention to your credit and it will be there for you when you need it!

Author: Randall Filbert, MPA

www.LendingIdaho.com www.FamilyGuideToFinances.com www.BuyandSellinIdaho.com

Tell the Obama Administration you want the Housing Tax Credit Extended!

Randall Filbert- Filbert Real Estate Team (Filbert Real Estate Team) — Thu, 08 Oct 2009 21:49:52 -0700

The Real Estate Community must be pro-active in having our voices heard by the Obaba Administration. I don't just mean Real Estate Agents, I mean Lenders, Appraisers, Title and Escrow companies, consumers, builders, suppliers, sub contractors, and any one else who has an interest in having the housing market specifically, or the national economy as a whole recover.

I implore each and every person to make their voices heard by submitting their comments to this website:

http://www.fixhousingfirst.com/

It is imperative that you weigh in with both the White House and the Treasury Department to let them know that the homebuyer tax credit is working and to urge them to extend and expand it. Feel free to personalize the message and add your own insights and successes. As always, please encourage your neighbors, co-workers, customers and suppliers to do the same.

For more information about the 2009 First Time Home Buyer Tax Credit go to:

http://www.federalh ousingtaxcredit.com/2009

For more information concerning efforts to extend the program go to:

http://www.prweb.com/releases/first_time_home_buyer/102009/prweb3009844.htm

Author: Randall Filbert, MPA

www.LendingIdaho.com www.FamilyGuideToFinances.com www.BuyandSellinIdaho.com

Running out of time to benefit from the First Time Home Buyer Tax Credit?

Randall Filbert- Filbert Real Estate Team (Filbert Real Estate Team) — Wed, 07 Oct 2009 12:48:09 -0700

Potential homebuyers are running out of time to benefit from the American Recovery and Reinvestment Act of 2009’s First Time Home Buyer Tax Credit. Will Congress allow the $8,000 tax credit for first-time purchasers to expire as scheduled on November 30th? Or will the tax credit get a second life and be extended, thus allowing the struggling housing market additional time to recover. This is of particular concern if you are a buyer just starting to shop and you see entry-level prices bottoming out or rebounding in your local market. The tax credit statute requires buyers to completely close on their purchases by Nov. 30. This doesn't leave a lot of time left for people who haven't yet decided on a house, have not obtained mortgage financing, or who are in the process of repairing their credit in order to qualify for a mortgage. Buyers considering the purchase of a short sale property may still have many weeks or months worth of bank bureaucracy to muddle thru before they can close on a property. According to economists at the National Association of Realtors, between 300,000 and 350,000 additional sales of houses will be stimulated this year by the tax credit across the country. Some economists estimate that each home sale additionally generates approximately $63,000 in new sales of items like appliances, tools, landscaping, building materials, furnishings, moving expenses, etcetera. Assuming these estimates are accurate (and even if they are grossly overstated), this means that the housing tax credit provides an immediate and significant benefit to the overall American economy. In fact, housing represents a significant percentage of the National GDP. Failure to extend what may be one of the most effective pieces of the Obama administration's 2009 stimulus legislation would cost jobs, economic growth and lost tax revenues. In an effort to put pressure on lawmakers the National Association of Realtors and the National Association of Home Builders have initiated intense grass roots campaigns to make the case for extending the credit, and perhaps even expanding it. However, a tax credit extension would cost billions of dollars in lost federal revenues thus contributing to an already historically profound deficit. With the rapidly approaching deadline, the likelihood that Congress will extend the tax credit remains uncertain. Bills are currently pending in both houses to extend the credit for another year. But can any of this happen before the Nov. 30 deadline? Congress is stretched thin with focus on two wars, health care reform, climate change and energy concerns, financial system regulatory reform and a new Consumer Financial Protection Agency, among others. Bottom line: I believe that given the political and economic importance of the housing tax credit, its significant influence upon the housing sector’s ability to recover, and the aggressive lobbying in Washington, some sort of extension is likely. However, don’t count on a bigger credit. If I were buying my first house, I would not wait to see what’s going to happen…I’d be buying a house NOW! Author: Randall Filbert, MPA www.LendingIdaho.com www.FamilyGuideToFinances.com www.BuyandSellinIdaho.com This blog's intention is to provide inspirational stories as well as historical accounts and insight into matters concerning the mortgage and real estate markets. These are my opinions and should not be regarded as factual data.

$8000 Tax Credit, super low interest rates, and a depressed housing market!

Randall Filbert- Filbert Real Estate Team (Filbert Real Estate Team) — Thu, 14 May 2009 21:57:02 -0700

There has probably NEVER been a better time to buy a home than today! Get pre-approved, find a great real estate agent, and start house-hunting!