Team Thayer Property Servicing

magine having the ability to control your retirement dollars with investments you make every day, with an asset base you understand and with tax-deferred or tax-free dollars. There are things every investor must know if they intend to leverage their IRA in order to make intelligent financial decisions and capitalize on building wealth on a tax-deferred or tax-free basis. 1. Unrelated Debt Financed Income Tax. When you have a debt-financed property in an IRA, you may be subject to UDFI on the profits from the sale of, or income from, the property. Does this mean that you should not buy real estate that is debt financed in your IRA? Absolutely not! The tax you pay is based on the percentage of the debt financed. If you finance a purchase and sell it right away, your IRA would be taxed on the percent of profit made by the borrowed money. In a buy and hold situation, the percentage is based on the average outstanding debt over the previous twelve-month period. In addition, your IR

T he rapid recovery in home prices in a number of U.S. metros has already led some observers to suggest that we are in another home price bubble.   We find this unsupporting for a number of reasons, the foremost of which is that most people using this term may not fully understand what defines a bubble.  We started writing about home price bubbles about 10 years ago when there was a bubble building in a number of important housing markets around the country. One common theme used to describe bubbles in other markets is the idea that prices have risen very quickly to levels which could not be justified by underlying fundamentals.  There are a number of well documented historical examples of bubbles that include the stock market in 1929, gold prices in 1979-80, and Japanese real estate prices in 1989-90.  It is typically acknowledged that in the late stages of a bubble, prices keep rising primarily because they are expected to keep rising.  At the time of our previous research, we sug

A Washington County jury on Thursday ruled in favor of a couple who claimed JPMorgan Chase foreclosed on their home after making broken promises. As the Oregonian reports,  the case is likely the first wrongful foreclosure suit to go before a jury in Oregon since the housing crash hit. That the jury found sympathy in the case of Bela and  Eva Lengyel  -- who, the jury determined, had been denied a loan modification that they qualified for and Chase had initially agreed to provide -- could be a harbinger of things to come for foreclosure cases in Oregon. As the O's Elliot Njus reports, the case "offers a glimpse into how juries may deal with fallout from the mortgage crisis and the way the nation's leading banks reacted. " "If I were a transnational bank, I would be very concerned about facing juries in this state,"  Terry Scannell , the attorney who represented the couple, told the newspaper.

Rates 3/4 of a point since 6/19.  Investors assumed at that time the economy was taking off! Ben Bernanke, Federal Reserve Chairman, said all is well and the Fed will start cutting back on any stimulus spending.  Since 06/19 a several scares in the markets freaked investors out, but harsh reactions were calmed. I expect a steady incline in home values until the high seasons ends mid September. 30 year fixed conforming = 4.500% 4.596% 15 year = 3.625% 3.706% 3/1 ARM = 3.375% 3.461% FHA/VA 30 year fixed = 4.250% 4.917% 30 Yr Fixed Non-Owner = 4.750% 4.818% Prime rate is currently = 3.250%

Foreclosure activity continued a sharp decline in May while the number of at-risk homes also fell. Lenders foreclosed on 52,000 U.S. homes during the month, the real estate data firm CoreLogic Inc.  reported. That's an increase from 50,000 in April, but down 27 percent from 71,000 foreclosures in the same month a year earlier. The "shadow inventory" of homes foreclosed, in foreclosure or in danger of foreclosure, once a major concern that threatened to prolong the housing market's decline, has declined to 2 million properties. That's down 34 percent from its 2010 peak. "The stock of seriously delinquent homes, which is the main driver of shadow inventory, is at the lowest level since December 2008," said CoreLogic chief economist Mark Fleming. "Over the last year it has decreased in 42 states by double-digit figures, resulting in rapid declines in shadow inventory for the first quarter of 2013." In Oregon, lenders foreclosed on 4,500 h

This chart shows the number of  bank owned/REO properties and short sales in all areas of the RMLS™ system during the second quarter of 2013 . Below are links to additional charts for some of our larger areas. •  Portland Metro Distressed Properties (2nd Quarter 2013) •  Clark County, WA Distressed Properties (2nd Quarter 2013) •  Lane County, OR Distressed Properties (2nd Quarter 2013) •  Douglas County, OR Distressed Properties (2nd Quarter 2013) •  Coos County, OR Distressed Properties (2nd Quarter 2013) Here are some additional facts about distressed residential properties in the second quarter of 2013: All areas when comparing percentage share of the market, second quarter 2013 to first quarter 2013: • When comparing the second quarter 2013 to first quarter 2013, distressed sales as a percentage of new listings decreased by 6.3% (9.0% v. 15.3%). • In a comparison of the second quarter 2013 to first quarter 2013, distressed sales as a percentage of closed sales de

Ninth Circuit: An act protecting tenants after foreclosure has its limits | HousingWire Tenant protections are a way of life, especially in foreclosure cases, when a renter is often left dangling after a landlord loses a rental property to foreclosure. But no matter how many protections are crafted for tenants, a case out of the Ninth Circuit Court of Appeals, reveals just how slippery laws protecting renters can be.   In  Logan v. U.S. Bank National Association , the Ninth Circuit held that the 'Protecting Tenants at Foreclosure Act' does not create a private right of action for tenants to bring a civil challenge in court when they believe a financial firm has violated provisions of the act. Instead, the court said the act is designed to give tenants a defense to an eviction proceeding rather than a private right of action to file suit, enforcing parameters of the Act. The case developed when the plaintiff’s rental property ended up in the hands of US Bank after a f

How Safe is Formaldehyde in our Buildings and Homes? Formaldehyde : Formaldehyde (HCHO) is considered a strong irritant and potent sensitizer. Inhalation of large amount of HCHO can cause severe irritation of the upper respiratory tract and death. Data from human exposures indicate that exposure to large concentrations of HCHO gas may lead to pulmonary edema. Even HCHO gas present in the workroom at concentrations of 1 to 11 ppm can cause eye, nose, and throat irritation. Formaldehyde has the potential to cause cancer in humans. Sources of formaldehyde in the home include building materials, pressed wood products (hardwood plywood wall paneling, particleboard, or fiberboard) and furniture made with these pressed wood products. Urea-formaldehyde foam insulation (UFFI), combustion sources and environmental tobacco smoke. Durable press drapes, other textiles, and glues. Health Effects: Formaldehyde, a colorless, pungent-smelling gas, can cause watery eyes, burning sensations in

Banks May Suffer, but Rising Mortgage Rates Won't Shake Housing (CLGX, FNMA, JPM, WFC, Z)

Home prices are up over 12 percent nationally from a year ago, and limited supplies of homes for sale continue to push that number higher. Demand is coming back, home builder sentiment is at a seven-year high and real estate agents are reporting bidding wars. None of this means housing is heading back to the bubble, according to economists at CoreLogic. "The fundamentals are there right now, and the market is responding," said Mark Fleming, chief economist at CoreLogic. Even in the fastest growing markets, where prices are up around 20 percent from a year ago, Fleming pointed to still near-record affordability. For housing price affordability to return to the average level that we saw in the years between 2000 and 2004, he said, either home prices would have to rise an additional 47 percent or interest rates rise to 6.75 percent. Only Washington, D.C., and Hawaii are "technically unaffordable," according to CoreLogic. "Buyers buy based upon payment,

The number of homes for sale rose 4.3 percent in June to 1.9 million—the highest level in the past year. These gains are also higher than usual for this time of year, according to newly-released housing data from realtor.com®.  Following two years of declines, housing inventory is finally reversing course. More home owners are seeing rising prices and may be more apt to try to sell their homes.  The number of homes for sale has risen the most in the past year in areas that had seen the largest declines, such as Sacramento, Calif. (up 11 percent), Atlanta (up 10.9 percent), Phoenix (up 6.2 percent), and Miami (up 2.2 percent). From May to June, inventories soared by the highest month-over-month amounts in Southern California, with inventories up 51.5 percent in Orange County, 45.7 percent in Los Angeles, and 18.1 percent in San Diego, according to realtor.com®.  However, inventories of homes for sale remain far below last year’s level in markets such as Boston (down 35.1 percent)

Some see the recent rise in mortgage rates as a difficulty, but the latest Fannie Mae National Housing Survey posits a different point of view. Their chief economist says: "The spike in mortgage rate expectations this month...may increase housing activity in the near term by driving urgency to buy." He explains: "Consumers may recognize that  today's still favourable mortgage rates and home ownership affordability levels will recede over time.... More prospective home buyers may be deciding that now is the time to get off the fence." The share of survey respondents who believe mortgage rates will increase hit a record high 57%.   And the share who believe home prices will go up in the year also came in at a record 57%.  So guess what?  72% of respondents believe now is a good time to buy!   Rates may ease anyway. The current rise was attributed to the Fed's announcement it could begin tapering its bond purchases as soon as September. This sent bond prices d

FHA is a great way to  finance a manufactured home  with its own land in Eugene/Springfield or anywhere. I repeat, you can finance the purchase or the refinance of a manufactured home even in today’s lending environment in Lane County. FHA continues to be the best way to finance the purchase of a manufactured home, especially if you only have a limited down payment. There are minimum standards, for instance, the home needs to be a double wide, it has to have been manufactured after June 15, 1976, it can’t have been moved since it was originally set up and it must have a concrete foundation and tie downs. There are a couple of other interesting things of note when considering a manufactured home. The manufactured home cannot be in a flood zone, period, end of report. It doesn’t matter if you can get flood insurance or not, they cannot be financed if they are in a flood zone. USDA will guarantee new manufactured home purchases, but there are no lenders, to my knowledge, that wi

At the end of June, mortgage rates for a 30-year fixed-rate mortgage jumped to 4.5%, up from 3.9%on June 1 — and a notable jump from the historically low 3.35% monthly average rate toward the end of 2012. However, while higher rates do mean an increase in monthly mortgage payments, experts are urging potential home buyers not to resign themselves to renting for the next few years just yet — it’s still a good time to buy a home. These moderate increases in payments may still be manageable, particularly if buyers look at less expensive properties, or negotiate a lower price. For example, the difference in monthly payments for a $200,000 home at 3.9% and one at 4.5% is just $70.03. If budgeted correctly, this could be a manageable expense. Rick Allen, chief operating officer of Mortgage Marvel, is one expert who says now is still the time to buy a house. His platform records online mortgage loan applications, about a million transactions a year, which serves as a barometer for how

This week the Federal Reserve tried to calm investor's nerves and smooth out the markets.  That seemed to work fairly well, but we don't know what next week will bring in the way of investor concerns and confusion. Monday w e'll see the retail sales data which is always watched very closely, and Tuesday  brings the consumer price index.  Both of these are important gauges of inflation, and even though we don't expect any major inflation worries to come out of these reports, they can still produce more volatility. Mortgage rates will likely stay within their current range for a while, and I doubt that we will see rates below 4.00% on the 30 year fixed loans again for a very long time.  

Mortgage rates moved higher again this week as speculation continued about whether the Federal Reserve will end its future bond purchases, which have kept rates at historical lows, Freddie Mac reports in its weekly mortgage market survey. But remarks by Federal Reserve Chairman Ben Bernanke on Wednesday may indicate that the Fed won’t be ending its program immediately.  On Wednesday, Bernanke said that unemployment is still high and inflation too low. He said the Fed would not raise short-term rates until the unemployment rate reaches 6.5 percent. The jobless rate is currently 7.6 percent. The Fed has been buying $86 billion a month in government bonds to hold down long-term interest rates, which have helped mortgage rates in recent months reach all-time lows. Freddie Mac reported the following national averages with mortgage rates for the week ending July 11:  30-year fixed-rate mortgages:  averaged 4.51 percent, with an average 0.8 point, rising from last week’s 4.29 percen

Rising rates are a worry: 30-year fixed rate mortgages have gone from 3.5 percent to about 4.5 percent in the past month. That's not great, but concerns that the housing recovery may be choked off by this is a bit premature. Here's why: First, the rise in rates is unlikely to deter most buyers. Let's take a couple buying a $375,000 house...they put down 20 percent ($75,000) and get a mortgage for the remaining $300,000. There's no question they are paying more for the mortgage now. $300,000 Monthly Mortgage Payments: ·         At 4.5%: $1,520 ·         At 3.5%: $1,347 The difference is about $180 a month, or $2,100 more a year. That's not chicken feed, but it may not be a deterrent for most people. First off, it's deductible. Assuming a 25 percent tax bracket, that $2,100 will only be $1,675. Second, to qualify for that $300,000 loan the couple is likely to have to make about $75,000 a year. $1,675 is 2.2 percent of $75,000. That is not insignif

 A  report  released Thursday by the  Federal Reserve Bank of Cleveland  answers the question, “Are underwater  home owners  less likely to move for employment?” If underwater home owners are hesitant to sell their homes and move for new jobs, as some have conjectured, then the housing crisis has perhaps exacerbated the nation’s high unemployment rate. The Fed researchers point out, “If a job is available, the economic benefit of accepting it outweighs the potential costs of disposing of the home.” The researchers find that mobility did decline during the housing crisis, particularly in states with high levels of underwater home owners. In 2006 and 2007, the rate of home owners moving to another state was more than 1 percent in 37 states. In 2008 and 2009, that number decreased to 23 states. In Arizona, where 51 percent of home owners were underwater in late 2009, the mobility rate decreased from 1.7 percent in 2007 to 1.4 percent in two years later. Similarly in Ca

The jobs report came out  showing 195,000 new jobs.  This was much higher than the 165,000 expected.  The Labor Dept also revised the jobs count for May higher than first reported as well.  So, that picture looks very good for the economy. Unfortunately that's a bad thing for the bond market and likewise the mortgage backed securities market, so mortgage rates have jumped today.  However, I'm showing them, down below, the same as last Friday, because it's very likely they'll come back down some next week after things settle down.  Today's knee jerk reaction is fairly typical, and was exacerbated by the fact that not many investors were actually participating in the market toady since the lure of a four day weekend distracted many.   The unemployment rate remained the same at 7.6%, due mainly to those unemployed that are now getting back into the jobs market.  So, we are going to see the effects of "shadow workers" for some time to come.