We saw an increase in the number of foreclosures for August 2010. We expect the foreclosure rates to remain elevated for the next 12 months as the banks work through their distressed mortgages. Monday, September 27, 2010
Snohomish County Foreclosure Rates August 2010
We saw an increase in the number of foreclosures for August 2010. We expect the foreclosure rates to remain elevated for the next 12 months as the banks work through their distressed mortgages. 
Monday, August 9, 2010
Snohomish County Foreclosure Rates July 2010
The Snohomish County foreclosure rates remain elevated for July 2010. The Notice of Trustee Sales remain near their highest levels for the year. As typical, only about 25% of the Notice of Trustee Sales turn into actual foreclosures. There are various reasons why a home won't be foreclosed on. Those could be homeowners who have entered into a loan modification, those that catch up on their late payments, and those that end up selling their home.Wednesday, July 14, 2010
Snohomish County Foreclosure Rates June 2010
The Snohomish County foreclosure rates show us that homeowners are still struggling to meet their mortgage payments. However, what is most interesting is that the numbers show us that the banks are not aggressively foreclosing. We hope this is a result of banks working with homeowners on loan modifications through the government's Making Home Affordable Plan.
With the HAMP program there is really no need for someone to loose their home through foreclosure. This program not only helps those that have had income reductions, it will help those that have had a job loss.
"By August 1, all mortgage servicers participating in the Making Home Affordable Program will offer extra help for homeowners struggling to make their monthly mortgage payments because of unemployment. The Unemployment Program will offer homeowner's a forbearance period to temporarily reduce or suspend their monthly mortgage payments while they seek re-employment"
If you know of someone who is struggling to meet their payments, have them give us a call. We would be more than happy to explain the Making Home Affordable Program and how it may help them stay in their home. We have already helped 2 families keep their homes after going through a home loan modification.
As Realtors, we find it is important to provide education to those in need - and we are here to help!
With the HAMP program there is really no need for someone to loose their home through foreclosure. This program not only helps those that have had income reductions, it will help those that have had a job loss.
"By August 1, all mortgage servicers participating in the Making Home Affordable Program will offer extra help for homeowners struggling to make their monthly mortgage payments because of unemployment. The Unemployment Program will offer homeowner's a forbearance period to temporarily reduce or suspend their monthly mortgage payments while they seek re-employment"
If you know of someone who is struggling to meet their payments, have them give us a call. We would be more than happy to explain the Making Home Affordable Program and how it may help them stay in their home. We have already helped 2 families keep their homes after going through a home loan modification.
As Realtors, we find it is important to provide education to those in need - and we are here to help!
Snohomish County Average Home Prices June 2010
Snohomish County average home prices for June 2010 dropped about 2% over May. This is indicitive of the fact that so many homes in the lower price ranges are selling as opposed to those in the upper price ranges. This drags down the average as a whole.
Distressed property sales continue to be a factor in the market. Bank sales or REO properties represent 20% of the sales and Short Sales represented 11% of the sales for the period of January to June 2010.
Distressed property sales continue to be a factor in the market. Bank sales or REO properties represent 20% of the sales and Short Sales represented 11% of the sales for the period of January to June 2010.
Monday, June 7, 2010
Snohomish County Average Sales Prices May 2010
Snohomish County average sales prices for May 2010 continue to show market stabilization. Average home price sales have been hovering around $310,000 for the last six months.Distressed property sales represented 23% of the sales for May. For May there were 713 residential property sales of which 171 were distressed properties.
Bank owned properties sold for an average price of $241,757.
Short sale properties sold for an average price of $292,855.
There are many more homes in the lower price ranges that are distressed properties which is reflected in their average sales prices.
Friday, May 14, 2010
REO Sales Outpace Foreclosures in Snohomish County
Where are all the foreclosures? Certainly not in Snohomish County. As a matter of fact, Snohomish County is holding up pretty well. There has been no flood of foreclosures or bank owned properties known as REO's to come on the market.
In fact the number of REO properties sold on the market in April 2010 exceeded the number of actual foreclosures for the same period.
For the 10 months shown in the graph above there were 1,851 foreclosures. Of those, 1,387 were sold on the open market. Approximately 10% sell at auction on the courthouse steps and the rest are listed for sale.
Currently there are 409 REO properties listed for sale, which is about a 3 month supply based on current sales rates of about 139 per month.
The Snohomish County real estate market continues to show stabilization along with median and average home prices.
Tuesday, May 4, 2010
Snohomish County Foreclosures Rates April 2010
The Snohomish County foreclosure rates for April 2010 indicate continued stress on homeowners' ability to make their mortgage payments. The increase in filing of Notice of Trustee Sales is partly due to Bank of America's announcement to step up it's process in foreclosing on homes that are delinquent in their mortgages.
A secondary reason is most likely "strategic defaults". Those are homeowner's willing to walk away from properties which they owe more than they are worth. Many are realizing that sacrificing their credit for a couple of years is worth it. Many homeowners are more than $100,000 underwater in their homes. These are mostly homes that were purchased at the peak of the market in 2006 and 2007.
A secondary reason is most likely "strategic defaults". Those are homeowner's willing to walk away from properties which they owe more than they are worth. Many are realizing that sacrificing their credit for a couple of years is worth it. Many homeowners are more than $100,000 underwater in their homes. These are mostly homes that were purchased at the peak of the market in 2006 and 2007.
Tuesday, April 13, 2010
The 3 Most Overlooked Tax Deductions For Home Buyers
Most of us all know about the 2 most common home ownership tax deductions available.
· Home Mortgage Interest
· Real Estate Taxes
But did you know that there are 3 MORE VERY IMPORTANT ADDITIONAL tax deductible items that are usually overlooked?
These are 3 important deductions that every homebuyer needs to know!
1. Points Paid By Seller (for borrower):
· Home Mortgage Interest
· Real Estate Taxes
But did you know that there are 3 MORE VERY IMPORTANT ADDITIONAL tax deductible items that are usually overlooked?
These are 3 important deductions that every homebuyer needs to know!
1. Points Paid By Seller (for borrower):
You say what? How could dollars contributed by the Seller (which shows up on the Seller side of the HUD statement) be a tax deduction for the buyer?
Well according to the IRS, their position is this:
“A borrower is treated as paying any points that a home seller pays for the borrower’s mortgage”
The term “points” is used to describe certain charges paid, or treated as paid, by a borrower to obtain a home mortgage. Points also may be called loan origination fees, maximum loan charges, loan discount, or discount points.
If you purchased a home and the seller paid “points”, these are fully deductible to you as the homebuyer! They are not deductible to the home seller.
Important Exception: The points were not paid in place of amounts that ordinarily are stated separately on the settlement statement, such as appraisal fees, inspection fees, title fees, attorney fees, and property taxes. Also, the deduction cannot exceed the amount of money you used as down payment, earnest money or other contribution totals.
Tip: Make sure your lender/escrow doesn’t apply the seller paid points directly to charges such as appraisal fees, credit reports, document preparation fees, etc. The amount is clearly shown on the settlement statement (such as the Uniform Settlement Statement, Form HUD-1) as points charged for the mortgage. The points may be shown as paid from either your funds or the seller's.
2. Mortgage Insurance Premiums: New IRS Effective Rule January 1, 2007
You can take an itemized deduction on Schedule A (Form 1040), line 13, for premiums you pay or accrue during 2009 for qualified mortgage insurance in connection with home acquisition debt on your qualified home.
Those that had to pay an up front Mortgage Insurance Premium at closing are allowed to claim that amount as a deduction.
Important Exception: If your adjusted gross income (AGI) on Form 1040, line 38, is more than $100,000 ($50,000 if your filing status is married filing separately), the amount of your mortgage insurance premiums that are deductible is reduced and may be eliminated. See Line 13 in the instructions for Schedule A (Form 1040) and complete the Qualified Mortgage Insurance Premiums Deduction Worksheet to figure the amount you can deduct. If your AGI is more than $109,000 ($54,500 if married filing separately), you cannot deduct your mortgage insurance premiums.
Tip: Don’t forget to deduct the mortgage insurance premium included in your mortgage payment every month at the end of the year as well, and for the years to come.
3. Late Charges on Mortgage Payments:
You can deduct as home mortgage interest a late payment charge if it was not for a specific service in connection with your mortgage loan.
Advice: Please consult your tax accountant for advice regarding restrictions and limitations for your personal situation.
Well according to the IRS, their position is this:
“A borrower is treated as paying any points that a home seller pays for the borrower’s mortgage”
The term “points” is used to describe certain charges paid, or treated as paid, by a borrower to obtain a home mortgage. Points also may be called loan origination fees, maximum loan charges, loan discount, or discount points.
If you purchased a home and the seller paid “points”, these are fully deductible to you as the homebuyer! They are not deductible to the home seller.
Important Exception: The points were not paid in place of amounts that ordinarily are stated separately on the settlement statement, such as appraisal fees, inspection fees, title fees, attorney fees, and property taxes. Also, the deduction cannot exceed the amount of money you used as down payment, earnest money or other contribution totals.
Tip: Make sure your lender/escrow doesn’t apply the seller paid points directly to charges such as appraisal fees, credit reports, document preparation fees, etc. The amount is clearly shown on the settlement statement (such as the Uniform Settlement Statement, Form HUD-1) as points charged for the mortgage. The points may be shown as paid from either your funds or the seller's.
2. Mortgage Insurance Premiums: New IRS Effective Rule January 1, 2007
You can take an itemized deduction on Schedule A (Form 1040), line 13, for premiums you pay or accrue during 2009 for qualified mortgage insurance in connection with home acquisition debt on your qualified home.
Those that had to pay an up front Mortgage Insurance Premium at closing are allowed to claim that amount as a deduction.
Important Exception: If your adjusted gross income (AGI) on Form 1040, line 38, is more than $100,000 ($50,000 if your filing status is married filing separately), the amount of your mortgage insurance premiums that are deductible is reduced and may be eliminated. See Line 13 in the instructions for Schedule A (Form 1040) and complete the Qualified Mortgage Insurance Premiums Deduction Worksheet to figure the amount you can deduct. If your AGI is more than $109,000 ($54,500 if married filing separately), you cannot deduct your mortgage insurance premiums.
Tip: Don’t forget to deduct the mortgage insurance premium included in your mortgage payment every month at the end of the year as well, and for the years to come.
3. Late Charges on Mortgage Payments:
You can deduct as home mortgage interest a late payment charge if it was not for a specific service in connection with your mortgage loan.
Advice: Please consult your tax accountant for advice regarding restrictions and limitations for your personal situation.
For more information on Home owner/buyer tax deductions go to:
Thursday, April 8, 2010
Snohomish County Average Home Prices March 2010
Snohomish County average homes prices for March 2010 were $308,299. Average home prices so far this year are:January $310,883
February $312,299
March $308,299
Prices look like they are "bouncing around the bottom". However, prices remain under pressure with bank sales and short sales. We will need to watch how the expiration of the home buyer credits, increased interest rates and more foreclosures coming on the market affect prices in the coming months
Keep in mind that these statistics are all about homes that are selling. Home sale averages are weighted heavily by sales under the $400,000. This doesn't necessary mean that home prices are still falling... it means more homes are selling in the lower price ranges.
By looking at the chart below you can see that the majority of home sales are under $300K. With so many home sales in the lower price range and few homes sold above $500K, will drag down the average.
Those looking to sell a home above $500K will find few buyers.
Monday, April 5, 2010
King County Average Home Prices March 2010 Show Continued Market Stabilization
King County average home price sales for March 2010 continue to show stablization in the Seattle real estate market. The last 14 months have home sales ranging near the $450,000 average price. March 2010 home sales came in at $458,546.
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