Mortgage or a Note to a Deed of Trust?

June 16, 2014

Often people commonly use the word Mortgage when they take a home loan.  A true Mortgage however is much different from a ‘Note to a Deed of Trust’ which make up the majority of all home sales.

Mortgages typically deal with homes with 40+ more acres and were designed for Farm, Ranches and large Estates.  That will be another article….. today we will touch on a ‘Note to a Deed of Trust’ .  What is it?  How typical is it?  Why do banks use them’?

For real estate purchases, state law requires either a mortgage or a deed of trust to provide security for a home loan. In many ways, a deed of trust functions like a mortgage. However, one major difference between the two lies in who holds the legal title for the home while the loan is being paid. In a deed of trust, the legal title is held by the trustee, often an escrow company, while the equitable title is held by the borrower. Also, in a deed of trust, a foreclosure can be conducted outside of the courts, which is almost always faster and less costly than a judicial foreclosure.

A deed of trust secures repayment of the loan by placing a lien on the property. There are three parties to a deed of trust: the borrower, the lender, and a trustee. Some states permit both a deed of trust and mortgage, while others use just one or the other. A deed of trust is always used together with a promissory note, which is a contract that sets and controls the terms of the loan and repayment. The trust deed is simply a security instrument—without it, the note still creates indebtedness, but it is an unsecured debt. The money would still be owed, but a lender would not be able to force a sale in satisfaction of the note without going to court as an unsecured creditor.

When a note is secured by a deed of trust, it allows the loan holder to take back the property if the conditions for repayment aren’t met. Remember that with a deed of trust, this can be done without court proceedings.   The deed of trust, not the note, is recorded with the county recorder in the county where the property is located and indexed in the public records.

 

For more information on deeds and to purchase real estate deeds for your county and state, visit

deeds.com.

How to Prevent Becoming an Overwhelmed Home Shopper

May 2, 2014

Searching for a new home, while exciting as it can be, often can be a very emotionally exhaustive exercise for a Buyer.   How does a Real Estate Agent help a buyer with ‘Home Shopping Fatigue’?

Don’t know if you have ever had a chance to dine at the Cheesecake Factory.  Wow what a menu!  Choices upon choices and more choices; in fact about 50 pages of them.   As intoxicating as that may sound, you can spend a half hour just trying to decide what to order.  My waiter comes back after about five minutes and says ‘Are you ready to order yet’?  and I have to tell him “I’m only on page five of ten of the appetizer section of the menu sorry”.

Where an agent brings value to his client is by quickly learning and understanding the needs and wants of a buyer, which can often be two separate things.

The problem lies here: ‘What a Buyer doesn’t know, he doesn’t know’. An experienced agent realizes that a buyer often starts with an idea or picture in his head, but after viewing actual properties their ideas, needs and wants will tend to evolve.  It is important to listen and ask thought provoking questions which will require the Buyer to honestly evaluate and discern where they can be flexible and where they cannot.  No home will ever give you 100%, even if you build it from scratch, after you were done there would be things you wished you did different. Try this with each property:

  • A good technique is to give each home a nick name.  That will help you better recall them, because after viewing a number of homes they can blur.
  • Rate each home 1 to 5 stars and half stars count, even quarter stars if need be.  This will assist in the process of elimination as you rehash the homes you visited.  It will also help clearly define which things on the list are more important.

Once you have a clear picture of their needs, wants and desires, you as an agent can assist them by narrowing the search criteria to homes that will conform more closely to the items they cannot compromise on. Remember that your client is not just buying a house, their buying a home.  Happy House Hunting!

WILDERNESS RANCH ANNUAL REAL ESTATE REPORT FOR 2013 SALES

February 12, 2014

2013 Wilderness Ranch Annual Real Estate Report
Our Annual Review of Real Estate sales in Wilderness Ranch & Boise County for 2013 and your 2014 forecast.

By: Paul Heim & The New View Team

At the start of 2013, Boise was named one of the top ten cities leading the national recovery by Forbes (as posted Feb 4th 2013), as well as one of the cities with the highest home price appreciation.  But how did we fare throughout the year and where are we today, but more importantly, where will tomorrow take us?

Year at A Glance: The first and second quarter of 2013 showed continued growth and sales in both Ada and Boise Counties. While prices leveled off and a sense of normality returned to the market place, the third quarter showed a decrease.  This was mostly due to the government shut down and sequestration which added both uncertainty and increased interest mortgage loan rates by 1% to 1.25% .

The end of the fourth quarter saw a small rebound.  Average overall increase in value on a median priced home in 2013 was fairly similar for both Ada and Boise Counties, coming in at around 11%.

While the third quarter brought some price pressure on homes under 150k (mainly due to higher interest rates) we saw significant hurdles overcome in homes priced over 300k and upwards to 1 million. The following graph shows the average sales per year based on price range.  As shown below, home sales of higher value were up significantly in Boise County.   (see chart below)

GRAPH OF UNIT SALES IN BOISE COUNTY LAST 5 YEARS BASED ON PRICE RANGES
chart1

Boise County Trending and Sales compared to Wilderness Ranch Properties Detailed in Following Graphs.

chart2

chart3

BULLET POINTS
Boise County Statistics:
•    78 Units Sold in Boise County 2013 compared to 157 Units Listed about a 50% absorption rate.
•    However homes in the 250k and above range showed a much higher absorption rate.
•    14 short sale listed 4 sold, 1pending
•    17 bank owned listed, 11 sold & 4 pending,
•    3 HUD listings, 2 sold & 1 pending
•    Boise County Overall Average List Price was $183,375 per sq ft $90.22
•    Boise County Overall Average Sold Price $177,619 per sq ft $86.70

WR STATS:
•    Wilderness Ranch had 27 Active Home Listings
•    20 homes Sold and
•    4 Pending Sale prior to Jan 2014
•    Makes an absorption rate of 73% roughly and if you count homes hat went pending 2013 but close in 2014 it is closer to 85%
•    Average List Price in WR $236,145 and
•    Average price per square foot list $99.52
•    Average Sold Price $230,997
•    Sold Price per sq ft $97.54
•  Highest Sold Price per sq ft was $166.12 and lowest was $39.15.

WR Comprised nearly a third of all the home sales in Boise County and on average continues to maintain a higher absorption rate and garner a higher sales price per square foot.  The next closest neighborhood by comparison to WR would be Osprey, which generally sells at a higher price per sq ft.  However it has a minimal amount of existing residences by contrast, hence therefore has a smaller turnover rate by proportion.

General News and Local Economic Forecast:
•    As many are aware, the Warm Springs has reopened. This has helped Boise County and especially the Idaho City economy and   will continue to do so.

•    As the large mining operation in Placerville grows (as is anticipated) this will also have an impact on Idaho City, as workers will no doubt frequent Id City for goods and services as well as increase rental rates.

•    In addition, the new Medical Family Practice by Dr. Matthew Nelson known as ‘Mores Creek Family Medicine’ was a well needed addition to the county.

2014 Forecast:
The Federal Reserve has determined to decrease the ‘Quantitative Easing’, whereby the Government buys back its own bonds, which the rumor alone resulted in an interest rate hike of about 1% for mortgages in second half of 2013.  When this does occur (and trust me it will eventually), then you can expect to see interest rates increase.  As of end January 2014 the Feds have unanimously agreed to cut back from 70 billion to 60 Billion a decrease of about 10 billion.   Depending on how this affects the market, and their continued endeavor to diminish the easing, we can potentially see mortgage rates go to 5 or 6% by end of year and in the next two years we can easily see 8%+.

While this may be good overall for the US dollar in the long run and no doubt for people intending to live on interest from savings (because currently that is near zero) it will have a serious affect on real property sales for a period as it lowers buying power.

Here are two good source articles for reference:

Quantitative easing Federal Reserve announcement
http://www.knoe.com/story/24575935/quantitative-easing-federal-reserve-announcement

Citing Growth, Fed Again Cuts Monthly Bond Purchases
http://www.nytimes.com/2014/01/30/business/federal-reserve-policy-decision.html?ref=quantitativeeasing&_r=0

Prediction: How will this affect or housing market in the year to come?  Once people realize and accept that the trend on interest rates may be a steady climb upwards, I forecast that it will initially create a wave of buyers trying to beat the rising tide.  Following that we will settle into a mental adjustment period where sales may go flat, and as laws of supply and demand go, can affect values.  The duration period to pull out of something like that is difficult to predict at this point.

You can liken the adjustment to gas prices.  Remember the first time you paid $2 per gallon?  We all had a fit, then we saw gas rise to nearly $5 per gallon.  Now we would dance for a chance at $2.  I get giddy when it drops down near $3.  People will always want and need to buy or sell, and eventually they will accept and settle in to the current norm of the day.

This spring may afford a window of opportunity.  If you were considering making a move, upsizing or downsizing, then you may want to evaluate your options today.

Please feel free to call or write us with questions.  We are always happy to help with information or to answer any questions.

Don’t forget to visit http://www.WildernessRanchHomes.com to see what is happening in your neighborhood.  Also If you are interested in East Boise County in general you may visit http://www.BoiseCountyHomes.com

Closing a Real Estate Transaction – What to Expect

July 31, 2013

When you are purchasing a home, the closing is the last piece of the puzzle before you receive your keys to move into your new home. Your closing day may seem to move like a whirlwind, as there are many steps in the process that make sure everything is done professionally and accurately. What can you expect at closing? There are many things you need to know but here are a few of the basics.

First; the closing will generally be held at a Title Company, at an agreed location. However, depending on the circumstances, situation, and/or state you live in, it may also be conducted at your lender’s office, a real estate attorney’s office, or anywhere else that is legal and has been agreed upon.

There could be a number of different people who will attend the closing, such as your attorney, the seller and their attorney, both real estate professionals, your lender, the builder’s representative, the title company, a notary public and a closing escrow agent. It all depends on many different factors, such as; if it is a new construction home or existing, if there are attorneys involved, and the type of property that is being purchased. In many places the seller and buyer may sign at separate times. In some areas it may be customary for everyone to be at the same table at the same time.

Once the day and time has been scheduled for everyone at the agreed location, the closing process begins. Your closing escrow agent will review a settlement statement with you also known as the HUD (Housing and Urban Development) form, summarizing all the charges, credits and misc expenses that pertain to your particular purchase such as; title fees, loan fees, and other associated charges and credits that may apply based on the contracted details of your purchase.

When everything has been explained thoroughly and clearly so that everyone understands and is in agreement, then signing commences. The items you will have to sign may vary depending on the type of transaction. As an example; a cash deal will require a lot less forms to complete versus a standard ‘Conventional’ loan, but an ‘FHA’ (Federal Housing Authority) or ‘VA’ (Veterans Administration) loan will require a great deal more paperwork to review. Other documents you will also need to sign are the ‘Deed of Trust’ or mortgage, the promissory note, and the Clarity Commitment document. There might be other items to sign depending on your own specific situation and location.

Generally if you are financing your home then you will probably be required to provide evidence of homeowners insurance known as a ‘Binder; and in some cases the inspections that were performed on the home. Most all lenders require the buyer to have a homeowners insurance policy in place before they can sign over the home. This ensures that the lenders interests in the home are protected in case of a catastrophic event such as fire, water damage, etc.. This may also vary depending on your States requirements.

You will provide your down payment, closing costs, prepaid interest, taxes and insurance by using a certified or cashier’s check in most cases. Ask your closing agent what is the best form of payment that is acceptable. After all the parties involved have completed and signed all documents pertaining to the transaction, the lender (if applicable) will be notified to release funds to the closing escrow officer who will then distribute said monies as instructed by the agreement to the appropriate parties. The final step: Your new transaction will be recorded with the state, designating you as the rightful owner of your new home. In some states full funding may occur at the closing table, other states only after recording. Check with your agent for what is typical to expect in your State or area.

In order to cover everything, sign and delegate funds, the closing procedure may seem like a lengthy process. But once everything completed and all payments are distributed, the closing will be complete and you get the keys to move in to your new home.

About the Guest Author
Winter Park Colorado Real Estate Company, Coldwell Banker Mountain Properties is pleased to bring you this article on what to expect during a closing. Coldwell Mountain deals with Grand County Real Estate in Colorado. If you are interested in seeing their listings, check out their website today.

2012 Wilderness Ranch Idaho Annual Real Estate Sales Report

February 4, 2013

NewViewFBLogo                                                                     

Our Annual Review of Real Estate sales in Wilderness Ranch for 2012 and your 2013 forecast.

By: Paul Heim & The New View Team

Wow what a year!  While I had forecasted in last year’s report that we had passed the bell curve and would see an increase in market values for 2012, the market surpassed what anyone had expected or predicted.  We saw an unprecedented turn around in the Treasure Valley real estate market.  Overall values increased anywhere from 10% to 15%. These gains were primarily in homes under $350,000 but higher priced homes benefited also.

What were the causes and effects?  What we witnessed was a market correction.  It showed that homes had become undervalued.  I like to use the Circuit City analogy.  ‘Best Buy won the war’, … however I would bet Circuit City had way more customers the last four months they were open during  their  ‘Going Out of Business Sale’.  Best Buy had no way to compete with their prices those last months, but after their biggest competitor was finally gone, they knew they would see a spike in their growth and profit.

Likewise, as the banks ‘Going Out of Business Sales’ (foreclosed homes) were nearing a completion, the average seller was not able to compete with these prices.  We then entered a period of contraction.  This simply means we had more buyers than available listed properties.  Supply and demand rules ensued.

With the low inventory of listings on the market, we often dealt with multiple bids in the Valley when homes were priced competitively.  But how did Boise County and Wilderness Ranch fair in comparison? 

In 2012 East Boise County finally crossed an important barrier.  For 18 months we had no sales over $230,000 and that was causing difficulty in appraisals.  Not that the value wasn’t there in higher priced homes, just that appraisers couldn’t validate them for the lenders and the lenders need the appraisals to issue the loans.   The New View Team was able to complete two high-end sales (Boise County, but not in WR) very early spring, (cash deals) that helped remove that barrier and set precedence for every other sale and refinance that occurred moving forward in 2012.

Boise County tends to lag behind the Boise Valley (Ada County) by six to twelve months typically.   The Boise Valley saw a noticeable turn in the market starting the fourth quarter of 2011 so we anticipated it to carry over to Boise County by spring, but as summer set in it happened better than anyone had expected.  No complaints here!

Here are some graphs to illustrate key trends in the Boise Valley and East Boise County Real Estate Markets

Idaho Mountain Real Estate Stats

Homes in Idaho

How home sales compared in Boise County Idaho and Wilderness Ranch 2003 through 2012

2013 Forecast:

Boise is still seeing a contraction as developers try to re-group and get approval on new parcels through the hoops of planning and zoning for building.

I expect to see more homeowners (who were previously tight on the current value vs. what they owe) attempt to list in 2013, now that values have increased.  Nationally, home prices are predicted to increase 1% to 3%, but I predict Treasure Valley real estate increases to be somewhere between 3% to 5% conservatively.

In part, this projected increase will be due to a rebound in land values, which affects ‘over all’ home values.

Boise County, I believe, will see the START of a land recovery in Spring of 2013.  Whether it will do as good as housing did in 2012 is yet to be seen.  If you are looking to invest, then NOW may be a good opportunity to consider land, prior to a potential rebound.

I would suspect we will see more building and new construction homes taking place in Boise County in 2013.

There are some other exciting things happening in Boise County potentially for 2013 and we will keep you updated with them as the year progresses.  Some highlights are:

-          The opening of the Hot Springs in Idaho City which will help this end of the county economically.

-          Dr Matt Nelson’s new Family Practice office, which will be located directly across from the old Rock’s Lodge.

If you have any real estate related questions, please feel free to call or email us anytime, or visit our website!  We would love to hear from you.

Paul Heim & the New View Team

(208) 344-5700 – office

(208) 794-8175 – Paul Mobile

http://www.NewViewRE.com

What made you move to Boise?

February 4, 2013

Boise is a unique city experiencing  an influx of folks that migrate from many places.  As it grows it has developed its own unique personality.  But many of the things that make Boise so great are the foundations that were laid by others years ago, by the everyday people who created it through good times and bad.

I just wanted to share what I love about Boise and what drew me here and hoping to hear your story too.

I have resided in the Boise area for almost ten years.  My first regret was that I didn’t move here ten years earlier.  However I have had some history to Boise prior to moving here, as my sister has lived here for over 30 years.  Having visited on numerous occasions I easily fell in love with the laid back people, the easy quick access to mountains and nature, and one of the last places to feel what the ‘Wild West’ was about.  Since well over half of Idaho is available to the public, you can spend your life exploring the back country and never scratch the surface.

My best way to explain the Boise phenomena is this way;  is it the most beautiful place in the world?  No, but it does have a lot of amazing beauty.  Is it the cheapest in the world?  No, but life here is pretty reasonable and the quality of life is well worth it.  Is Boise the safest place in the world?  No, but if you lost your wallet, odds are on your side you will get it back,…with your money in it. I can attest embarrassingly to this fact twice over the years.  Is it the friendliest place?  Perhaps not, but I and most others agree, people here are down right neighborly and will help someone in need.  Lest I forget, you can actually get service at local commercial businesses from people who actually smile and if they don’t have what you need, they will tell you where to find it.  Almost like going back 50 years when it comes to manners.

There is no true utopia and you will find bad elements anywhere you go in the world.   So while Boise may not always win first place in everything, if you add up all the well-rounded benefits it offers in so many of the facets important for day-to-day living, statistically it is kind of hard to beat.  It’s the only place I have ever lived that I look forward to coming home from vacation.

Please share what you love about Boise, what drew you here and/or Idaho in general.  I want to hear.

What is there to do in Boise ID

October 14, 2012

What’s all the fuss about Boise Idaho?  Why is it always ranked high for best places to raise a family.  Is it the most beautiful place on the planet, no but it is very mountainous and beautiful and offers a quick easy escape to nature in almost any direction.  Is it the cheapest on the planet?  No, but the quality of life dollar for dollar is significantly better compared to most states and cities with the same amenities.  Did I mention the friendliness you find everyday.  You will find a large amount of big city amenities but still have the small town friendly feel. That is why many migrate here to raise a family and many others choose to retire here. But isn’t Idaho just a lot of potatoes?   Common misconception,… I know you were thinking that.    Actually Idaho is the largest exporter of wheat, so wheat overrules potatoes.

Idaho offers more wilderness land than any other US state outside of Alaska.  If you flattened Idaho out it would be larger than the state of Texas. You could spend a lifetime exploring it.

But what does it have to offer for day to day living you may ask?   Besides the great dining, I have compiled a list of places to go and explore when you make your way here for a visit.  Maybe you already live here, so here is a bucket list to complete.

Boise Zoo , Idaho Birds Of Prey Center, Idaho State Historical Museum, Basque Block, Egyptian Theatre,  Boise Idaho Ballet ,   Julia Davis Park,  Live After Five,  Boise Philharmonic,  Discovery Center of Idaho,  Idaho Dance Theatre Inc.,   Boise State Broncos football , Idaho Shakespeare Festival,  Boise Opera,  Live Music and Concerts,  Bogus Basin Ski Resort , Lucky Peak Reservoir , Ann Morrison Nature Park,  not to mention ‘Fly Fishing’, great Bike trails, hiking the Boise foot hills, ‘White Water Rafting, comedy clubs, restaurants and pubs with a relaxing night life and much much more.  Don’t forget to check out the Boise Greenbelt a 25 mile long paved path that meanders along the scenic Boise river.

These are a few of my favorite things.  What have you discovered in Idaho.  Please share.

Boise Idaho Real Estate sees a ‘Come Back’!

September 22, 2012

The Boise area housing market has seen a significant turn around in 2012.  Homes values have seen some correction and sales/absorption rates have increased dramatically.  Boise also benefits from being an influx state where many people relocate from other states.  Why? .. For quality of life.  Idaho boasts more public lands than any US state outside of Alaska.  If you flattened Idaho out it would be larger than the state of Texas.  If you are looking for that quality of life change than we recommend you should investigate Idaho for yourself.

The Core Logic Index Rate has ranked Boise as the #1 spot for a real estate turn around in the US>   The median home price in the Greater Boise area is very affordable compared to most metropolitan areas that offer similar amenities.  There are many quality homes to be found in the Treasure Valley area of Boise between the 100k – 200k range, offering 3 bedrooms 2+ baths and often even three car garages.  You can investigate Boise area homes by clicking here.

You can learn more about the Treasure Valley area of Boise Idaho by visiting http://www.cityofboise.org/  Come experience the difference.

Forbes has Boise No. 2 on its “Best Cities For Raising A Family” list.

September 21, 2012

Many ask what makes Boise Idaho so special.  Of all the places in the world, it isnt that we are the most beautiful, or the safest there is in the world, or the cheapest economy, or the best real estate prices, best schools, etc…..  However if you want a beautiful mountainous home, safe environment, reasonable priced place to live, well priced real estate, along with good ranked education, then Boise has a great portion of so many things, that when put together ‘it’s hard to beat’.  See why for yourself!

Where Is Your Real Estate Mind Set?

June 15, 2012

I recommend anyone looking to buy a home in the near future to read this article “Mistakes homebuyers make as seller’s market looms”  as it touches on many vital points to consider.  Buying today has changed and those who are slow to change their mindset may find themselves frustrated and discouraged.    Currently the market has made a fundamental shift but it is easy to stay caught in an old mindset.  The ‘Buyers’ market in many areas has all but diminished for now.  Where the future goes time will tell.

A couple of my favorite highlights in the article are;

  • Some buyers don’t realize or can’t accept that the market has changed, real estate agents and analysts say.
  • “Right off the bat, buyers say, ‘I want a steal,’ and I tell them they have to wipe that word out of their vocabulary,”
  • WAITING TO GET PREAPPROVED FOR A MORTGAGE BEFORE STARTING THE SEARCH: During the boom years, buyers didn’t worry about arranging their financing up front because mortgages were easy to get. Not so anymore.

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