Real Estate Weekly December 25, 2020

INSIDE

This Issue NEED A FORBEARANCE EXTENSION? HERE’S WHAT TO DO PAGE 5

SECOND HOME BUYERS GET RENTAL GO-AHEAD PAGE 7 CLASSIFIEDS PAGE 7

DEC 25-DEC 31, 2020

TABLE OF CONTENTS Q&A

Ask Our Broker.......................................................................P6

Need a forbearance extension?

Here’s what to do ...........................................................P5 Second Home Buyers Get Rental Go-Ahead............................................................P7

INSIDE PAGE

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Classifieds............................................................................P7

RE-Weekly To advertise in RE-Weekly or other Skagit Publishing publications, Call: 360.416.2180 or Email: ads@skagitads.com ©2020 by Skagit Publishing | All rights reserved.

All real estate advertised in Real Estate Weekly is subject to the Federal Fair Housing Act, which makes it illegal to advertise “any preference, limitation, or discrimination because of race, color, religion, sex, handicap, familial status, or national origin, or intention to make any such preference, limitation or discrimination.” We will not knowingly accept any advertising which is in violation of the law. All persons are hereby informed

Cathy West Oak Harbor Escrow Manager/LPO 360.679.5055

Christa Canell Freeland Escrow Manager/LPO 360.331.4838

Brandi Jensen Stanwood Escrow Manager/LPO 360.629.9737

Katey Von Hagel Marketing Representative 360.707.1076

LAND TITLE AND ESCROW W

Holly Mathers Island County Title Manager 360.675.2246

Unless otherwise noted, all photographs, artwork and ad designs printed are the sole property of Skagit Publishing and may not be duplicated or reprinted without express written permission.

Skagit Publishing is not responsible for typographical or production errors or the accuracy of information provided by advertisers.

NORTH PUGET SOUND ASSOCIATION of REALTORS® 525 East College Way, Suite J

Mount Vernon, WA 98273

Tel. (360) 416-4902

www.npsar.com

REALTOR® Charity Golf Tournament Even though we were unable to hold our Golf Tournament this year, these Major Sponsors donated their sponsorship dollars to our deserving charities; Skagit Habitat for Humanity and Friendship House. We are so grateful to have such great support within our community!

Gold Sponsor:

Shelley Nevitt Anacortes Escrow Manager/LPO 360.299.0565

Silver Sponsors:

Service you deserve with people you trust Visit any of our 5 locations in Oak Harbor, Burlington, Freeland, Stanwood and Anacortes

Ltco.com 2

Shelley Miner Burlington Escrow Manager/LPO 360.707.2312

Eldon Brown Skagit County Manager 360.707.2158

that all dwellings advertised are available on an equal opportunity basis.

For further information call HUD Toll Free at 1-800-669-9777.

All Houses subject to prior changes without notice. Neither advertisers nor Skagit Publishing are responsible for any errors in the ad copy. Skagit Publishing reserves the right to refuse any advertising, which we deem unsuitable for our publication.

Bronze Sponsors:

Mission Statement: The Nor th Puget Sound Association of Realtor s advocates for Realtor s and their clients, and promotes the protection of property rights.

2025889

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December 25, 2020

STAT Real Estate Stat

$215,655 Average American mortgage debt in Oct. 2020

Source: The Motley Fool

SKAGIT TRADITION REALTY LLC Skagit Tradition Realty LLC 3780 E. College Way Mount Vernon, WA 360-424-0300 www.skagittraditionrealty.com HAPPY HOLIDAYS!

December 25, 2020

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360.424.0300

Danya Wolf

360-708-8294

This historic house built of Skagit River rock is the home of Skagit Tradition Realty, LLC. Owned and operated by Danya Wolf continuing her family’s real estate legacy begun when her grandfather opened Johnson Properties in 1936. Our mission is to foster strong relationships and provide high quality residential, commercial and relocation services; and to give back to our community.

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2038747

3780 E. CollEgE Way, Mount VErnon

Now could be the time to sell a new home and earn a slice of the real estate pie.

Record-low interest rates and record-low housing prices are renewing interest in the floundering housing market for many people. “When sellers are interviewing real estate agents to market their homes, their primary focus is usually on the advertising that the agent will offer them,� says Jessica Goodbody of Weichert Realtors.

Let us help you meet your marketing goals by advertising your listings in Real Estate Weekly.

Call 360.416.2180 Today!

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RealEstate weekly In print and online goskagit.com ads@skagitads.com

December 25, 2020

Need a forbearance extension? Here’s what to do

T

he persistent pandemic has taken a toll on Americans in countless untold ways. For many, lost wages and medical expenses related to COVID are particularly consequential, making it tough to pay the bills, including the monthly mortgage.

Fortunately, many financially struggling homeowners have been able to take advantage of mortgage forbearance protection allowed under the CARES Act passed by Congress last March. This will enable borrowers of federally backed mortgages, including Freddie Mac, Fannie Mae, VA, FHA, and USDA loans, to request mortgage forbearance – the tempoDecember 25, 2020

rary suspension of required mortgage payments – for up to 180 days.

The problem is, those six months have expired or will soon for many borrowers who earlier pursued forbearance. They’re worried about what will happen next or if they have any options to pursue.

Thankfully, they have choices, including the option to extend forbearance protection for an additional 180 days.

“Most forbearance plans are expiring now, or have recently expired because borrowers have reached the six-month deadline where they either have to file for an extension or let their forbearance expire,” says

Nishank Khanna, CFO of Clarify Capital in New York City. “In fact, about 1 million plans were set to end in October 2020.”

Rachel Khirallah, a foreclosure attorney in Dallas, says forbearance plans under the CARES Act were intended to be a temporary resolution to those whose income was impacted by COVID. “The CARES Act, which provides forbearance plans to any qualified borrower who requests it, only makes this plan available for 180 days for those who demonstrate a coronavirus-related hardship,” she says. “But eligible borrowers can request a 180day extension.”

If your forbearance plan is nearing expiration, and

you’re not ready to start making payments again, contact your loan servicer and communicate this, recommends Thomas O’Connell, senior vice president, Default Management, for Planet Home Lending in Meriden, Connecticut.

“First, check your servicer’s website; there’s probably a COVID-19 message right on the homepage with directions for asking for an extension on your forbearance or for other loss mitigation assistance,” O’Connell explains.

Khirallah adds that forbearance allowed under the CARES Act shouldn’t involve completing and submitting any special documents.

“You simply need to request

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the forbearance by phone or in writing and state that it’s due to a COVID-associated hardship,” she says. But Khirallah states that it is always best to have it in writing.

Most importantly, don’t wait until the last minute or your expiration date to get a hold of your loan servicer.

“You want to make sure you allow enough time to discuss your financial situation with your lender and review your options,” Khanna suggests.

Keep in mind that not all mortgage lenders/servicers will provide or allow a forbearance plan – only government-backed mortgages are required to do so.

“The good news is that many privately backed mortgages are voluntarily

granting forbearance, too, so don’t be afraid to ask,” says O’Connell, whose company is providing forbearances in 90-day increments and granting forbearance extensions to eligible customers.

Note that if your mortgage is not federally backed, you may be required to complete a forbearance application and provide documentation to evidence your hardship.

Remember, too, that forbearance doesn’t forgive your debt obligation.

“It simply sets it aside until a later date. Each month, your loan statement will indicate how much your outstanding debt is,” O’Connell notes.

“Keep an eye on that balance so that you’re not surprised later by how much you owe.”

Once you’re back on a firmer financial footing, you can pursue several routes for repaying your skipped payments. O’Connell says the most common four options are: Immediately repay what you owe all at once in a lump sum.

Modify your loan to make up for the missed payments; this might include changing your interest rate and/ or extending how long your mortgage lasts.

Defer your payments. “You may be able to tack the missed payments onto the end of your loan. Or, you can agree to have a balloon payment due at the end of your current home loan,” says O’Connell.

Enter into an extended repayment plan in which you pay more each month, typically over a year or so, to make up your missed payments.

The bottom line?

“If you need help, ask for it.

That’s what forbearance is all about,” insists O’Connell.

“Contact your loan servicer, who can walk you through your options.”

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Q&A

Credit Scores Question:

We spoke with a real estate broker about buying a local home, and as a condition of working with him, we were required to sit down with a mortgage loan officer to see what we can really afford. Although we are a two-income household, our credit scores averaged 680 -- not enough to excite many lenders.

We think property prices will generally rise, so we still want to buy. How do we crack the mortgage system?

Answer:

You’ll likely qualify for a mortgage with a 680 score.

The average FICO-brand credit score hit 711 in October, according to the company. A score of 680 is generally regarded as “good” by lenders. They can work with you, especially if you want VA, FHA, USDA financing, or a conforming loan with 3% down.

However, you may be running into a curious problem. Your score is not somehow disqualifying; it’s just that a lot of borrowers have higher scores.

ASK OUR BROKER

By Peter G. Miller

Ellie Mae reports that in September, the typical FICO-brand score for a successful borrower was 753. That’s an enormously-high score by traditional standards. For instance, Ellie Mae also reports that a typical score was 738 in January and 728 in May 2019.

Those buying homes today are not among the unemployed. They have income but with the pandemic fewer opportunities to spend. The result is a better financial profile. Think about the $1,200 government checks distributed early in 2020.

According to the Federal Reserve Bank of New York, 34.5% of the money was used to pay down debts, while 36.4% was put in savings. Less debt can mean better credit scores, while more savings means more borrower liquidity, something lenders very much like.

Despite the pandemic, the real estate market is generally strong across the country. You can see evidence of this in the form of rising prices. The National Association of Realtors (NAR) said that the

typical September purchase price was $311,800, a record and an eye-popping 14.8% higher than a year ago.

However, we’re also at a moment of great uncertainty. The real estate market is strong now, but what about 2021 and the year after? How can prices continue to rise in the face of massive unemployment? What happens when today’s eviction and foreclosure moratoriums end?

These are important questions for lenders because mortgages are mainly secured by home values. If values stall or go down, then mortgage loans are suddenly riskier, something lenders want to avoid.

The bottom line is that a 680 credit score is very workable for lenders. You might not get the best mortgage rates, but as this is written, interest levels are at or near historic lows. Very good financing is available, especially in comparison with past rates.

Email your real estate questions for Mr. Miller to peter@ctwfeatures.com.

own the local real estate market expand your reach when you combine the power of our digital audience and premium print ads in the re weekly ask your multimedia account executive for details.

ContaCt: 360.424.3251 • ads@skagitads.Com 6

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December 25, 2020

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CLASSIFIEDS PUBLISHER'S NOTICE

All rental and real estate for sale advertising in this newspaper is subject to the Fair Housing Act which makes it illegal to advertise any preference, limitation or discrimination based on race, color, religion, sex, handicap, familial status or national origin, or an intention, to make any such preference, limitation or discrimination Familial status includes children under the age of 18 living with parents or legal custodians, pregnant women and people securing custody of children under 18. This newspaper will not knowingly accept any advertising for the rental or sale of real estate which is in violation of the law. Our readers are hereby informed that all dwellings advertising in this newspaper are available on an equal opportunity basis.

To complain of discrimination call HUD at (206) 220-5170.

Second Home Buyers Get Rental Go-Ahead From: Marilyn Kennedy Melia

Jeff Tucker, speculating that some second-home shoppers like the option of working in a more relaxed locale. his year we’re logging record time at home.

But there’s also a less apNow, owners think parent sweetener to second they could use a spare -- near homeownership that may be a beach, mountains, or woods. prompting some to seal the Recent Zillow data shows deal: Getting a green-light that views of for-sale listing from a mortgage lender to in vacation-home markets are rent the home out. up nearly 50 percent from last Mortgage rules on renting a year, and pending sales have vacation home were clarified jumped 30 percent. last year to clearly state that The WFH trend is likely fuel- owners could rent the house ing that new-found interest, on a short-term basis during says Zillow senior economist their first year of ownership,

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December 25, 2020

as long as rentals didn’t total more than half the year and occupancy was under the control of the owner, not a management company.

Previously, rules appeared to ban rentals – short-term, long-term, anytime.

Now, not only are the Airbnbstyle short-term rentals allowed for part of the first year, but longer-term rentals are permitted the second year and thereafter.

Previously, buying a second home to rent required an “investment” mortgage, where

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rates could be as much as one percent higher, says Joe Nunziata, co-CEO of FBC Mortgage.

The rental ability has, “For sure given more incentive to buyers to purchase these types of homes,” says Ralph DiBugnara, VP of Cardinal Financial and president of HomeQualified.com.

While rental income appeals to buyers as a way to offset the cost, but mortgage lenders still examine whether a borrower’s income will support the loan, concludes Nunziata.

10 - January 29, 2019

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7704 SilVER lakE ROad, MaPlE FallS

$349,000

This home ‘lives bigger’ than its stated size of 1491 sq.ft., offering 2 beds, plus bonus room, 1 3/4 baths on a large lot with ample parking, a detached 2 car garage and a HUGE storage building.

The kitchen has a large pantry, skylight and plenty of cupboard/counter space. Master has a large shower with an oversized vanity and a walk-in closet. Living area features vaulted ceilings and ceiling fan. Main bath has 2 doors for easy access to the laundry room and the outdoors. This home is set back from the road and has a beautiful front yard or you can enjoy the privacy of the large Patricia Box yard in the back, as well. Sherry Ruderman Office Manager/Broker 360-540-1552 O: (360) 424-0300 MLS# 1694535 C: (360) 941-9186

2xxx URBaN aVENUE, MOUNT VERNON

$600,000

Prime 1 acre level, commercial parcel, subject to boundary line adjustment.

MLS#1649968

Danya Wolf

360-708-8294

4629 BEaVER PONd dRiVE S.

$105,000

Start your new home on this private 13,929 sq.ft lot in Eaglemont with all utilities in the street, surrounded by greenbelt and wooded area for maximum privacy, wonderful neighborhood with beautiful homes , walking distance to Clubhouse and restaurant with awesome views and sunsets. Eaglemont is an 18 hole Golf Course Championship Public Course!

360-202-3086 Elva Hunter

1102 S. 21ST. STREET, MOUNT VERNON

$349,000

Great 3 bedroom Mount Vernon home on the hill nearby Little Mountain Elementary and Mount Baker Middle schools. Offers kitchen with lots of cabinets, all appliances included; updated vinyl windows, fresh paint inside and out, one car garage, large yard with patio, blueberry and marionberry bushes! Yum! Parking for small RV or boat. Heat pump/central heating and air conditioning provides year round comfort. 325 square foot garage (per Skagit County Assessor). Mostly Danya Wolf fenced. MLS#1689654 360-708-8294

360.424.0300

H STREET Rd., BlaiNE

$1,200,000 Eighty (80) acres of mostly woods including Western Red Cedar and Douglas Fir, Cottonwood; Alder; and Birch; with one large pond great for duck hunting toward the northerly portion of the 80 acres, some meadows, one small beaver pond, plenty of walking trails or bring your ATV; and an old dug well near the old home site by the southerly edge of the property to the east of the gate.

Future homesite/Pasture land along the southwesterly edge of the property.

Potential for up to 16 building sites. Shown Danya Wolf 360-708-8294 by appointment. MLS# 1568051

3780 E. College Way, Mount Vernon

www.skagittraditionrealty.com 2038744

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