Kim Novak's Utah Real Estate Blog

West facing with lots of windows & natural light. Kitchen with stainless appliances. Updated master bath with cultured marble. Decks off master & family room. Driveway access to red barn with 3 bays and 2 door access + 3 stalls. Back pasture is fenced & has water for livestock. 3 bedrooms, 2 bathrooms, approximately 1456 square feet, built in 1984 on almost one acre. 2 car attached garage plus 2 vehicle barn in back. MLS 938603. Marketed by Kim Novak, RE/MAX Masters (801) 726-1443 kimnovak@remax.net.

Cute home in rural-ish area of Roy. Very nice condition. Vaulted ceiling with plant shelf in kitchen. Double closets in master bedroom. New water heater, dishwasher. Central air. 4th bedroom framed & sheetrocked in basement. Graveled RV parking. Fully fenced backyard. 3 bedrooms, 1 bathroom, approximately 1670 square feet, built in 2000. MLS 938708 Marketed by Kim Novak, RE/MAX Masters (801) 726-1443 kimnovak@remax.net

As a CDPE® serving the communities surrounding Hill AFB UT, I compiled this handbook to aid my active duty, prior service and retired military clients understand their options to overcome obstacles created by the current mortgage and housing crisis. Click Here for a copy of my handbook.

Although the primary subject matter relates to Foreclosure Prevention, there is also guidance on how to take advantage of the military benefits of the 2009 ARRA American Recovery & Reinvestment Act (original and enhanced). In particular is the Extended Dept. of Defense HAP Homeowners Assistance Program which provides relief in the event deployment or relocation creates a financial hardship due to the decline in local real estate market values.

If you need assistance, please contact me. I'm a voice for foreclosure prevention ... You have options, I can help.

Kim Novak, CDPE: Certified Distressed Property Expert
(801) 726-1443 (800) 977-7835 kimnovak@remax.net
www.UtahHouseandHome.com

A place for home owners facing mortgage troubles to find the resources & professional insight in to avoiding foreclosure. Both the public & the real estate community are welcomed to share their experiences, start a discussion or ask/answer questions.

Breaking News 11/30/09 The U.S. Treasury announces a plan to simplify and expedite the Short Sale approval process called HAFA Home Affordable Foreclosure Alternatives Program.

Complements HAMP by providing viable alternatives for borrowers who are HAMP-eligible.

Utilizes borrower financial and hardship information collected in conjunction with HAMP, eliminating the need for additional eligibility analysis.

Allows the borrower to receive pre-approved short sale terms prior to the property listing.

Prohibits the servicer from requiring, as a condition of approving the short sale, a reduction in the real estate commission agreed upon in the listing agreement.

Requires that borrowers be fully released from future liability for the debt.

Uses standard processes, documents and timeframes.

Provides financial incentives to borrowers, servicers and investors.

NOTE: 18% is almost 1 in 5 properties (read: real live people who are your neighbors, friends, family, co-workers ...)

NOTE: 23% is almost 1 in 4 properties

NOTE: "Fewer Homeowners Underwater"? Make sure you read the complete update. Fewer is not fewer in Utah, fewer is fewer compared to the national average. Remember, all politics, and real estate, is local.

NOTE: Like I keep telling my clients, "better" is a relative term. Now I can add "fewer" to the same list.

NOTE: "Utah's foreclosure rate will not rise as dramatically in the coming year". TRANSLATION: Utah's foreclosure rate IS going to rise in the coming year, just not as dramatically as ??? ... compared to last year? compared to Nevada's 65% underwaterness?

This type of "press release" is a terribly misleading disservice to us as dues paying members of the SLBR, our clients and the public at large.

Federal Tax Credits 2008 - 2009 Part I - 2009/2010 Part 2

First, there was the 2008 Housing & Economic Recovery Act $7,500 "tax credit" that is, in fact, an interest free loan that must be re-paid over a 15-year period. This program was effective April 8, 2008 and ended December 31, 2008. Then came the 2009 American Recovery & Reinvestment Act $8,000 tax credit. What I call a "just kidding" moment. If you closed on your home on December 31, 2008, you have to pay your tax credit back, but if you closed on January 1, 2009 you don't have to ... plus you get an extra $500. And then, adding insult to injury, the extended and expanded tax credits of the 2009 Homeownership & Business Assistance Act threw a cold bucket of water on a real estate market just regaining a faint pulse.  Great news for long term homeowners and the expanded $6,500 tax credit that benefits them, as long as they close after November 6, 2009 (too bad for you if it was even one day before that). I've had clients who felt ripped off both times. Every extension, every revision of these tax credit programs, creates an undercurrent of discontent for those home buyers who could have benefited from the newest version, but closed one day too late, or early, as the case may be.

Utah's Contribution: HomeRun Grant edition 1 and 2:

The original HomeRun Grant was a brainstorm. It provided a $6,000 ARRA funded incentive to buyers to purchase a newly constructed home, one that was already completed, and gave builders an opportunity to move their spec homes and close out high cost construction loans. This program had the side benefit of quickly removing the greatest competition to existing home sales - new homes. Then came Utah's own "just kidding" moment. The introduction of HomeRun2 Grant. Only this time, it was $4,000 and the home could be at any stage of construction. And a buyer could already be under contract on a new build and still take advantage of the program. The end result?  A significant portion of Utah's HomeRun2 Grants were consumed by home buyers already under contract to purchase a home, doing little to stimulate new sales.

In my opinion, tax credits have become subsidies distorting the real estate market. I believe that any further extension or expansion of this program, with the exception of those benefits due our military, will be counterproductive. I say it's time to help homeowners. Figure out how to give them $8,000 so that they don't have to sell as a short sale. There are a lot of well loved homes in excellent condition that would make ideal homes for new buyers, creating move up buyers for other homes, that can't be sold now because the sellers are upside down in their mortgages. A short sale may benefit a new buyer, but it eliminates another (for two years at least). Why not consider helping sellers with a monetized tax credit so that they can sell their home at market value, stop or minimize short sales and foreclosures eroding property values, get buyers into "non-distressed" homes and turn that seller into another buyer, thus propelling the market forward.

Where do we go on April 30th next year?

 

 

Kim Novak, CDPE Certified Distressed Property Expert

I'm very excited to announce that I've just received my CDPE designation and am looking forward to working with home owners avoid foreclosure by facilitating their short sale. Not every distressed property is bank-owned, a short sale or in pre-foreclosure, though. In preparing my current clients for the 2010 real estate market in Utah, I sent the following email this morning. One client agreed with an aggressive price reduction. One withdrew her listing from the market. I am waiting to hear back from ten others.

Home-price decline has good side, bad side

... Utah had the fourth-worst percentage drop in home prices among all states over the past year, which has improved affordability but also pushed more homeowners "underwater" on their mortgages ...

Good Morning, Everyone,

I have had a couple clients tell me that they have heard that the market is getting better (courtesy of news reports on CNN, FOX and MSNBC). Please remember that all real estate is local and "better" is a relative term. It will be 2011 before we see any sustained increase in home values in Northern Utah and that improvement will only be after another year of declining values.

I have additional information to share with you regarding the next round of defaults, short sales and foreclosures on the horizon. With the exception of a "breather" mid-2013, it will be 2015 or later until we achieve pre-2007 home values. I just received my CDPE (Certified Distressed Property Expert) certification and now have access to detailed, specific data regarding the coming tsunami.

If you are serious about selling your property, it must be priced like a distressed property (short sale, foreclosure, bank owned). This is your competition, and it is not going away. I shared the following with one of my clients yesterday:

... The bottom line is that, no matter how many people want to buy a home and/or take advantage of the $8,000/$6,500 tax credit, that they cannot qualify for a loan if they are not employed or are under employed. Even in a move up market home like yours, it is ofter the second or spouse income that is needed to qualify, and if either the primary or secondary wage earner isn't employed, then the buyers can't qualify. VA is currently the only 100% financing out there for your home. FHA is now at a 3.5% downpayment and is projected to increase to 4%+ effective January 1, 2010. Unemployment rates in Utah have been steadily increasing (up another 3.3% in October, month over month). There has been decreased relocation (military or civilian) at the base and I have personally had two relo referrals who decided to rent because of re-sale concerns in 3 years. All of this creates a recipe for fewer buyers, longer days on market and more and more decline in home values.

There has been an incredible shift in buyer price point expectations. Buyers used to expect to pay 5-10% more for a non-distressed property (those not short sales, bank repos, abandoned, etc.). Now, buyers expect ALL homes to be priced like distressed properties. They simply won't buy otherwise ...

What is a CDPE?

Excerpt from the Distressed Property Institute, LLC website

A Certified Distressed Property Expert^® is a real estate professional with specific understanding of the complex issues confronting the real estate industry, and the foreclosure avoidance options available to homeowners. Through comprehensive training and experience, CDPEs are able to provide solutions for homeowners facing hardships in today’s market, specifically short sales.

The prospect of foreclosure can be financially and emotionally devastating, and often homeowners proceed without guidance of any kind. The developers of the CDPE Designation believe that the best course of action for a homeowner in distress is to speak with a well-informed, licensed real estate professional. They have the tools needed to help homeowners find the best solution for their situation. Often, when other options have been exhausted, CDPEs can help homeowners avoid foreclosure through the efficient execution of a short sale.

While enduring financial difficulties is challenging for any family, the process of finding a qualified real estate professional should not be. Selecting an agent with the CDPE Designation ensures you are dealing with a professional trained to address your specific needs.

CDPEs don’t merely assist in selling properties, they serve and help save their clients in need.

* Only 20% of the current condominium MLS listings are under contract
* None of those listings under contract are "short sales"
* 38% of the listings under contract are vacant
* The median price of the listings under contract is $179,900
* The median price of active listings is $187,800
* There is a 4.4% disparity between what sellers want to sell their condos for and what buyers are ready, willing and able to pay for a condo

Source: Wasatch Front Regional Multiple Listing Service