McCall Idaho Real Estate

Top of Tamarack

The Tamarack Municipal Association has reached an agreement with the State of Idaho and Credit Suisse that ensures Tamarack Resort will have a 2011-12 ski and snowboard season. The resort is on target to open Dec.15, a release from Tamarack said on Wednesday. Tamarack’s snow making could make Tamarack be the only open ski area next week. 

 Tamarack Municipal Association and Credit Suisse will make full payment on a 2012 mountain land lease to the Idaho Department of Lands by Dec. 16, the release said. The association will pay $100,000, and Credit Suisse will provide $150,000.

  The agreement was reached after TMA submitted a business plan for the $1.6-million operation to members of the Idaho Land Board. TMA also got approvals from both Tamarack Resort LLC and Credit Suisse to operate the resort for the second consecutive year. The financially troubled resort is facing foreclosure, but operated its lifts and restaurants for skiers last winter to show it’s financially viable to do so.

The ski operations showed a slim profit last winter, Tamarack officials said. “TMA appreciates the hard work and cooperation of the Idaho Land Board’s staff making it possible to have a winter season at Tamarack,” said Tim Flaherty, TMA Executive Director. “More than 130 jobs are created and preserved through this agreement. The economic stimulus will be much appreciated by the local communities– not to mention the fun we expect our association members and guests to experience on the mountain this winter.”

Tamarack plans a 15-week season from Dec. 15 to April 1. The resort will be open Thursdays through Sundays, with extended days during holidays of Christmas, New Year, Martin Luther King, Jr. Day, President’s Day and Spring Break.

New Snow in McCall

New snow has fallen in the high country with about 12 inches of snow at the summit of Brundage Mountain.  While we wait for more snow, here are some winter sports updates.

The McCall Area Pass (MAP) has always been a bargain, offering year-round cross country skiing at Jug Mountain Ranch, Little Bear Basin, Ponderosa State Park and The Activity Barn for the low price of $135.00 for a single pass and $250.00 for a family pass.  This year, McCall Nordic is also offering three clinics that will be FREE for MAP pass holders while being available to the public for a charge. 

The first clinic will be Saturday, December 4 starting at 10:00 AM at Bear Basin: beginner and intermediate clinics with the focus on early season skiing and conditioning.  Advance sign up is required: call Ed Roper at 208-634-9417. Cost for the general public is $20.00 — FREE for McCall Area Pass Holders.   Other clinics will be offered throughout the year, visit the McCall Nordic Website for the schedule and where to buy the pass.  

Payette Powder Guides besides providing the best back county ski guiding and lodging in the area, will be offering a full range of clinics this year for Avalanche safety and rescue, and other back country topics.  Visit the website Payettepowderguides for a full schedule and information on their trips.  

Tamarack Resort will be opening on December 15 with the main lifts to the summit and some smaller lifts.   They will be operating from Thursday to Sunday and holidays visit the website for more info Tamarack resort

Thanksgiving Activities in McCall

Roadhouse Java in New Meadows will host a Holiday Artist Bazaar from noon to 5 p.m. Saturday, Nov. 26.  The bazaar is a chance for residents to shop local for the holidays and enjoy complimentary coffee and treats.

Featured will be DeMoss Glass Art, Deck the Halls with Boughs by Hollys, Dale James metal art, jewelry and scarves by Darcy Williamson and Momma’s Hats by Chris Patrick.  Also featured will be dogwood and huckleberry wreaths, Leap Year Designs jewelry and linen, wool crafts by Gitte DuPont and handcrafted greeting Cards.

Tickets are still available for the St. Luke’s McCall’s Auxiliary Holiday Happening, a traditional kickoff to the holiday season.  The event will take place Saturday, Dec. 3, at 11 a.m. at Shore Lodge and will have the theme “Christmas around the World.”

The event centers on a luncheon featuring a style show with international attire, live auction for dessert, and raffle prizes.

Tickets cost $25 and are available at the auxiliary Thrift Shop and St. Luke’s McCall Marketing Office. Tickets will not be sold at the door the day of the event.

Proceeds from Holiday Happening go toward scholarships for local students studying for health care professions.   For more information, call St. Luke’s McCall, 634-4061, ext. 271

There are many other events, visit the McCall Chamber Website for more info at McCall Chamber

Home Prices to Fall Nationally, Vacation Home Markets Expected to Rebound First

The besieged housing market has even further to fall before home prices really hit rock bottom.

According to Fiserv (FISV), a financial analytics company, home values are expected to fall another 3.6% by next June, pushing them to a new low of 35% below the peak reached in early 2006 and marking a triple dip in prices.   Several factors will be working against the housing market in the upcoming months, including an increase in foreclosure activity and sustained high unemployment, explained David Stiff, Fiserv’s chief economist.

Should home values meet Fiserv’s expectations, it would make it the third (and lowest) trough for home prices since the housing bubble burst.  

However the article goes on to say that many of the markets that will record the biggest increases or the first to stabilize are vacation or retirement communities, like McCall,  that had taken some of the biggest hits during the bust.   Already vacation home areas in Florida, Colorado have seen a price increase for vacation homes.   The biggest “winner” will be Ocala, Fla., with a 22.4% spike for the 12 months ending June 30, 2013. Ocala was one of the hardest hit communities in the U.S. over the past several years, with home prices falling some 50%.   

New Listings

Many new listings are still coming on the market with a variety of properties offering great deals.  We have a comfortable modern and rustic cabin close to downtown and only two blocks from Payette Lake with lake views, 3 bedrooms 3 bath for $359,000 here is the link to our

video tour   Also listed is a hard to find Tamarack Bay Condo, includes dock slip, beach, pool, tennis courts, 3 bedroom and 2 bath on the ground floor opening to the lake for $695,000, here is the link to our video tour

Mortgage rates are scraping along near historic lows, Freddie Mac says in its latest survey of what lenders are offering to well-qualified borrowers.

Home on over 3 acres Short Sale

The 30-year fixed-rate mortgage averaged 4.22% early this week, the same as the week before, and just above the 4.15% record low reached two weeks ago.

The rate on a 15-year fixed mortgage dropped to 3.39% this week from 3.44% last week.

Borrowers on average would have paid lenders 0.7% of the loan amount upfront to get a 30-year loan and 0.6% on a 15-year loan to get those rates, said Freddie Mac, the giant government-controlled finance company.

Meanwhile, for loans that become adjustable after five years at a fixed rate, the initial rates fell again, setting all-time lows for the eighth straight week, Freddie Mac said. Such loans indexed to Treasury bonds had an average starting rate of 2.96% this week, down from 3.07% last week. Upfront lender fees averaged 0.6%.

Economists said weaker economic signals and slowing home sales were keeping rates low. There’s little immediate fear of inflation, and the Federal Reserve has said it expects to hold its benchmark short-term rate close to zero through the middle of 2013.

“In addition,” Freddie Mac economist Frank Nothaft said Thursday, that “consumer confidence in August fell to the lowest reading since April 2009.”

The result? An early-August surge of interest in mortgages, which was driven by homeowners refinancing at rates under 4.5%, appears to be running low on steam.

A Mortgage Bankers Assn. survey of mortgage applications, released Wednesday, showed the volume decreasing for a second straight week.

The lobbying group has revised its projections of mortgage volume for this year because of the refinancings. It now expects $1.1 trillion in residential mortgages to be originated in 2011, $100 billion more than earlier forecasts.

But adjustments for the weak economy have the home-lending association reducing its outlook for 2012. The group cut its forecast for mortgage volume next year to just $931 billion, which would be the lowest since 1997.

So the Obama administration is apparently exploring alternate options with regards to preventing 1 Million homeowners avoid foreclosure in the midst of a nasty housing market crisis. The strategy involves encouraging lenders to process loan modifications on delinquent or defaulted home loans, including the reduction of principal on home loans, by bringing new investors into the market.

 This proposal to prevent 1 Million Foreclosures is based on a paper released by Jordan Dorchuck <http://www.housingwire.com/tag/wl-ross-co> , James Lockhart <http://en.wikipedia.org/wiki/James_B._Lockhart_III>  and Pete Mills, who are the MDs of Mortgage Banking Initiatives Inc. While it’s true that banks have resisted this kind of measure in the past (for overtly obvious reasons), the initiative will apparently be of benefit to all parties involved. Even more amazing, this strategy is not supposed to require a single taxpayer dollar. Skeptical? Well…I can’t say I blame you.

 So how is this possible anyway, at least from a theoretical point of view? Among the residential home loan-backed securities <http://en.wikipedia.org/wiki/Security_(finance)>  that are outstanding, approximately $1.3 trillion are what are known as private label notes which were issued by lenders and banks, based on information released from the Securities Industry and Financial Markets Association <http://en.wikipedia.org/wiki/Securities_Industry_and_Financial_Markets_Association>  (SIFMA). A large number of contracts regulating such securities limit the percentage of loans which can be amended, or forbid the reductions of principal.

As a means to overcome this little hurdle, the U.S. Treasury is being called upon to assist with facilitating the sales of defaulted or delinquent mortgages out of the securities to external investors at a discounted rate. Due to the fact that these investors would be purchasing loans at a level below face value, they will be quite open to renegotiating the relevant terms, including lowering the principal.

The U.S. Treasury would also be required to provide legal cover against lawsuits to the lenders servicing the mortgages, by declaring short-sales <http://en.wikipedia.org/wiki/Short_sale_(real_estate)>  to be “qualified loss-mitigation activity” based on legislation introduced in 2009.

So, allegedly, if lenders could simply sell toxic mortgages to strained debt investors, then everyone stands to gain. Banks would net a greater amount of money than they would through the foreclosure process, homeowners would benefit from a lower loan amount and keep their cherished homes, and the debt investor would gain a great deal on a loan that stands a greater chance of performing well.

 If all this represents such a rosy picture, why is there a need for legal cover? The investors involved in these deals should be able to connect and modify their respective agreements. However, some of them would most likely not be too happy if their loans were sold to other investors at a loss to themselves. This potentially represents the biggest technical/legal snag in the setting up of the process. The resultant sale price must please both the original investor as well as the investors to follow.

Well, a positive response to the housing market crisis that results in the saving of one million homes without causing any party involved to suffer any kind of loss, sounds a little too good to be true, doesn’t it? Typically when various deals are struck between the big players in the housing market, it’s the average middle-class family that gets screwed over in the process.

I could hardly blame the normal homeowner for harboring a healthy dose of cynicism and guardedness when it comes to developments of this nature. At the end of the day, the proof is in the pudding, and hopefully it doesn’t leave a heck of a sour taste in the mouths of American homeowners.

Ocwen  servicer of residential mortgages, has initiated a loan modification program designed to help distressed homeowners who owe more than their houses are worth and, at the same time, mitigate the likelihood of “rewarding” borrower delinquency.

Ocwen’s Shared Appreciation Modification (SAM) program reduces delinquent customers’ principal owed but also compels them to share some of the appreciation with the mortgage’s owner (not the servicer) if the house increases in value by the time they sell or refinance it. With a SAM, the principal of the loan is written down to 95% of the current market value of the home. The written-down portion is forgiven in one-third increments over the next three years, so long as the homeowner stays current on the modified mortgage. When the house is later sold or refinanced, the borrower must share 25% of the appreciation with the investors that own the loan; borrowers keep 75% of the gain. “Like all modifications, SAMs help homeowners avoid foreclosure. But they also restore equity. That’s a significant benefit to the customer and, we believe, the economy and housing market. Psychologically, it’s important too. Our analytics tell us that an underwater mortgage is one-and-a-half to two-times more likely to default than one with at least some positive equity,” said Ocwen CEO Ronald Faris. He added, “Investors who own the mortgages benefit too. SAM modifications keep loans performing and, equally important, they will deliver additional returns once the housing market rebounds.” Ocwen launched the SAM program on a pilot basis in August, 2010. “The results of our initial pilot were extremely positive — 79% borrower acceptance rate with only 2.63% redefaults,” said Mr. Faris. Ocwen has since ramped up the program and now has regulatory clearance to make it available to qualified customers in 33 states. “We think this program can make a real impact on curing the negative equity problem and are working hard to obtain approvals for SAMs in all jurisdictions,” added Mr. Faris. “Ocwen is to be applauded for this visionary program. They have created a win-win situation for all involved,” said Marcia Griffin, President of HomeFree-USA, a leading community-based homeownership development organization. “The homeowner benefits from a stable housing situation and the investor is positioned to share in the future appreciation of the home’s value. In addition, communities nationwide will benefit from fewer foreclosures.” Ocwen is a foreclosure prevention leader. Since the start of the mortgage crisis, Ocwen has saved over 200,000 homes from foreclosure, modifying loans so they’re affordable for homeowners and also perform for investors. Ocwen has produced 25 times as many modifications per loan serviced as the servicing industry overall. John Taylor, President and CEO of the National Community Reinvestment Coalition, said, “This innovative modification program offers meaningful help for underwater borrowers. The simplicity and rationale of the SAM is striking: the homeowner maintains the equity that would otherwise be lost in the foreclosure process, and servicers and investors maintain a performing asset. Ocwen has found a way to align the interests of borrowers, servicers and investors, making the program a win-win for all involved.” Mr. Taylor added, “We hope this innovative effort inspires other mortgage servicers to follow suit, because fixing the housing market is the best way to bring back jobs and revitalize the American economy.” Ocwen currently has a $74 billion residential servicing portfolio and is expanding as financial institutions exit the servicing market. Last year Ocwen acquired the HomEq servicing business from Barclays’ Bank and earlier this year Ocwen announced it reached agreement to acquire Litton Loan Servicing from Goldman Sachs. About Ocwen Ocwen Financial Corporation is a leading provider of residential and commercial loan servicing, special servicing and asset management services. Ocwen is headquartered in Atlanta, Georgia, with additional offices in West Palm Beach and Orlando, Florida and Washington, DC, with support operations in India and Uruguay. Utilizing our global infrastructure, proprietary technology, world-class training and processes, we provide solutions that make our clients’ loans worth more. Additional information is available at www.Ocwen.com .

Cabin for Sale in McCall

Freddie Mac (OTC: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), which shows fixed-rate mortgages declining for the fifth consecutive week amid mixed economic and housing data. The 30-year fixed averaged 4.61 percent and the 15-year, 3.80 percent. 30-year fixed-rate mortgage (FRM) averaged 4.61 percent with an average 0.7 point for the week ending May 19, 2011, down from last week when it averaged 4.63 percent.

 Last year at this time, the 30-year FRM averaged 4.84 percent. 15-year FRM this week averaged 3.80 percent with an average 0.7 point, down from last week when it averaged 3.82 percent. A year ago at this time, the 15-year FRM averaged 4.24 percent. 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.48 percent this week, with an average 0.6 point, up from last week when it averaged 3.41 percent.

A year ago, the 5-year ARM averaged 3.91 percent. 1-year Treasury-indexed ARM averaged 3.15 percent this week with an average 0.6 point, up from last week when it averaged 3.11 percent. At this time last year, the 1-year ARM averaged 4.00 percent. Frank Nothaft, vice president and chief economist at Freddie Mac, reports, “Fixed mortgage rates inched down for the fifth consecutive week as financial markets try to ascertain the current strength of the economy. 

 ”Data on the housing market was mixed. New construction on single-family homes fell 5.1 percent in April, with the largest declines occurring in the Midwest and South regions where tornados hit the hardest. Homebuilder confidence remained unchanged in May and near its January 2009 historical low, according to the NAHB/Wells Fargo Housing Market Index. However, conventional mortgages applications rose for the past five straight weeks ending May 13th, buoyed by lower mortgage rates and stronger refinancing activity.”

Judge picks winners, losers in ID resort fiasco By JOHN MILLER – Associated Press

Tamarack Resort.BOISE, Idaho — A judge has picked winners and losers in the Tamarack Resort foreclosure fiasco, leaving some contractors with the prospect of never collecting millions of dollars for work at the vacation destination that started failing in 2007.

 Fourth District Judge Patrick Owen ruled that Banner-Sabey LLC, a Seattle-based joint venture that oversaw Tamarack’s unfinished $91 million Village Plaza centerpiece, is due at least $5.5 million if and when the property is sold. Tri-State Electric Inc. of Boise is due about $1.2 million. But Owen also decided on May 11 that lien claims totaling millions of dollars from some companies including Beaverton, Ore.-based Teufel Nursery and Meridian, Idaho-based YMC Inc., a plumbing contractor, were inferior to those of a lending syndicate led by Credit Suisse Group.

 The Credit Suisse-led claims top $306 million – far above what the resort likely will fetch through fire-sale prices at a foreclosure auction. As a result, while Banner-Sabey and Tri-State will likely be paid, Teufel, YMC and others face the prospect of getting nothing. “As a practical matter, because the property value is almost certainly much less than the total of claims, it is unlikely that any lien claimant whose interest is inferior or subordinate to Credit Suisse will receive any part of the foreclosure proceeds,” Owen said. “By the same token, it is more likely that those claimants whose interests are prior to and superior to the Credit Suisse mortgages will have their claims paid.”

 There are dozens of other lien claims against Tamarack behind Credit Suisse totaling “many more millions of dollars,” Owen wrote. “You look at the business that came as a result of Tamarack resort, and how few are remaining,” said Rick Christensen, who heads Teufel’s landscape and design business in Beaverton. “We’re one of those casualties. When the Tamarack project closed, we were forced to leave the area, as many businesses were.”

It’s now clear the resort 90 miles north of Boise was in dire straits by mid-2007 – despite public claims at the time by majority owner Jean-Pierre Boespflug that it was slowing the pace of work only to get a handle on what was then Valley County’s largest construction project. Credit Suisse spokesman Duncan King didn’t immediately comment.

 Another Idaho judge issued a warrant last week to pressure Boespflug into court after he skipped a hearing meant to determine the value of his assets. That involved a separate case brought by Bank of America’s leasing division over two ski lifts in which there’s a $4.9 million judgment against the French-born resort developer. Boespflug, who had given personal guarantees for those lifts, has transferred assets to a Nevada company that he created. Bank of America’s lawyers said in court documents they suspect he’s trying to shield the assets. A contempt hearing is set for May 26.

Foreclosed Tamarack Townhome for Sale

Homeowners facing a mortgage payment crisis received some potential help from the Idaho House of Representatives Thursday. The House passed H331 unanimously, which would help homeowners who are facing foreclosure better deal with the situation.

Over the last three or four years, the attorney general’s office compiled a list of things most citizens complained about. Their top three concern foreclosures.

Rep. Max Black, R-Boise, carried the bill on the floor. “Many of those people facing possible foreclosure are scared of losing the American dream,” he said. “They face losing their homes for things that are often beyond their control.”

According to Black, in the past when someone received notice of a foreclosure sale for his home, he would sometimes learn the sale had been postponed. Thinking he had more time, the homeowner would work on negotiating a sale of the home or re-working the mortgage. What he may not realize is the bank was also still in the process of trying to sell the home. The old law does not require the bank to send another letter re-notifying the homeowners of another sale date. Black said this has to stop. “This is getting out of control. There have been instances where people have been trying to negotiate only to find out that the bank had already sold the home.”

Black believes this bill changes the game. “Now, this bill outlines that before a sale can take place, the homeowner has to receive notice with at least 14 days notice that a sale is going to occur.” That way, a homeowner has 14 days to get something negotiated, whether it is a sale to someone else, or a re-working of the mortgage.

This bill also adds a new section to foreclosure law requiring banks to send a notice to homeowners about potentially being foreclosed on, as well as an application to fill out for mortgage loan modification or negotiation. The bank is then required to respond to the homeowner and give him opportunity to go through that process.

Also, loan modification companies must show they’ve done work on someone’s mortgage loan before they can receive payment. In the past, Black said “sometimes these companies would receive anywhere from $4,000 to $8,000 up front and never contact the homeowner again. Meanwhile people are getting foreclosed on while they think they’re being taken care of.”

Rep. Brian Cronin, D-Boise, supported the legislation. “This isn’t perfect, but it’s a good step forward. Folks were losing their homes and they were completely caught off guard by it.”

In closing, Rep. Black said, “Hopefully, we can provide a homeowner safe haven, at least through this process.”

Short Sale Home for Sale

Since January 1 Bank Owned and Short Sale homes continue to lead the sales numbers for real estate in the Donnelly, Tamarack and McCall area.  From the first of the year to march 29 we saw 64 home sales in this area, of those 27 were bank owned properties and 10 short sales.  

Many of the Bank Owned ( REO) properties saw multiple offers on them with sold prices higher than the list price, this is a good sign showing us there are plenty of buyers for homes at the right price.

Visit our website, www.2ndhomes.com  to see all the listings in the area, our new listings and to learn more about us.  If you are thinking of selling please give us a call soon and see why we are your best choice for listing your home.

Short Sale Home for Sale

Many people in the market today are trying to buy a house from banks and many  have put many offers in on various homes.   Many of these
Buyers   put an offer in, even on houses that have no other offers, and that have been on the market for a long time, all of a sudden many offers come in — sometimes within 24 hours!

Then the bank goes with the higher offer, which confuses Buyers because their agent told them there were no other offers. This has been very depressing for many buyers and many buyers just leave the market.

Being a buyer in today’s market is nearly as frustrating as being a seller. You read and hear all day long about what a strong buyer’s market it’s supposed to be and what great deals there are to be had via foreclosures and short sales.

But when you start making offers on properties you find that the banks are nowhere near as willing to negotiate as you expected, and that many of the bank-owned homes cannot be bought without prevailing over a sea of other offers.

Depressing and frustrating — yes. But there are some strategies Buyers can and should put into play to better their chances going forward.

Home for Sale in Kings Pines

With an individual seller, you can minimize the chances of being outbid unawares in a couple of ways. You can put a very, very short time frame on your offer, eliminating a window of opportunity for other buyers to swoop in on the property.

Also, most listing agents in “regular” sales want their clients to get the highest possible price for their home, so it’s common for them to ring up any previous people who might have made an offer, to let them know when additional offers have come in, to give them an opportunity to increase their offers or otherwise make them more competitive.

You can’t force a bank to respond to your offer in a very short time frame, or in any time frame at all, for that matter. I once sold a bank-owned property in a transaction where the time frame between when we submitted an offer and when we received the signed acceptance back from the bank was 3 weeks

Whatever it is that caused a buyer  to be interested in a property at this point in time could very well be inspiring other buyers to make an offer at the same exact time. So, even when their agent is told that there are no other offers at the time they make theirs, they need to do several things.

First, they need to enlist their agent to stay in very close contact with the listing agent — as often as two or three times a day is not overkill — once their offer is submitted.

A buyers agent should not only be calling the listing agent frequently to check and see whether other offers have come in — they should also be asking the listing agent upfront to notify them if additional offers come in.

Additionally, a buyer should consider changing the approach to formulating the price you offer for a home. Buyers  will have a better shot at getting a home if you  offer a price more in line with the recent sales in the area, versus just offering something below or even at whatever the list price is on the home.

Every time a buyer wants to make an offer, they should sit down with their agent and get an analysis of the recent sales of similar properties in the area. If they are making an offer on a bank-owned property, the Buyer  should look at those sorts of sales. It’s critical that Buyers not only look at the recent comps’ list price, or sale price, but their list-price-to-sale-price ratio.

For example, if a home’s list price is $100,000 and it sells for $110,000, the list-price-to-sale-price ratio is 110 percent.

So, for example, if the other homes are selling for 107 percent of their asking price and a buyer is seriously interested in buying a home that is listed for $125,000, you would multiply $125,000 by 107 percent and consider an offer price of $133,750.

Some buyers get hung up on the idea that they are “overpaying” if they make an above-asking offer, but the reality is that the list price is not the actual price of the home — it’s a starting point for upwards or downwards negotiations, depending on the local market dynamics and how the list price was set vis-à-vis the fair market value of the home.

Getting a great deal is not necessarily the same as paying at or below asking; just think — if the list price is set too high, then offering to pay it isn’t a better deal than if you offer above-asking on a place where the list price is set way too low. This is why it’s so critical to rely heavily on an analysis of recent comparable sales to drive your offer price, rather than just on the list price or what the listing agent tells you.