Darla Zimmerman-Pilant

Lake Roosevelt is approximately 60 miles northwest of Spokane. The lake spans over 150 miles, extending from Grand Coulee dam to near the Canadian border. Wildlife abounds on the shores of Lake Roosevelt, and the lake is known for its world-class fishing, with walleye, bass, and rainbow trout and kokanee. The lake is managed by the National Parks Service, providing more than 600 miles of shoreline and numerous sheltered coves and public access beaches.

Seven Bays offers residents a community center, pool, playground, private lake access, a 2,600-foot airstrip and public water and sewer. There's also convenient access to the marina, golf course, Two Rivers Casino and Fort Spokane State Park.

We specialize in Lake Roosevelt properties. Browse our featured listings for currently listed homes and lots. Also, check out our virtual tour of Lake Roosevelt and the Seven Bays community. For more information, call LeRoy Pilant at 509-990-5150.

Right now there are many great buys in the Spokane market. Before you jump in, take the time to educate yourself about what is available to you. I've provided information below on the process a distressed home may go through, and the opportunities to purchase them along the way.

Spokane Pre-foreclosures
In a pre-foreclosure situation, the homeowner currently owns the house but is behind on payments and has been notified that their lender or bank will foreclose if they don't pay off the balance owed. Buying a home under these circumstances is the stuff of late night, get-rich-quick infomercials. In reality, most of these people don't want to sell nor do they want people preying on their hardship and trying to steal their equity. (Washington State recently passed an aggressive law protecting distressed homeowners, so use caution and consult an attorney if you intend to buy distressed property directly from the owner.) If owners are unable to bring their mortgage current, the lender usually sells the house at a public real estate auction, or Trustee Sale.

Spokane Foreclosure Auctions
Purchasing a home at auction (also known as a Trustee Sale) can be a way to buy real estate at a rock bottom price. However, most people don't realize that in order to do so, you are required to have cash or a cashier's check in hand on the day of the auction for the full amount owed to the bank. These public auctions are held at the Spokane County Courthouse. You are on your own to research the properties and in most cases you have no means to get inside these homes. In addition to purchasing "as-is, where is" you also bear the risk of additional secondary mortgages, outstanding liens or assessments on the property. In some cases you may have to evict tenants.

Because of the difficulty, risk and up-front cash involved in buying at the Trustee Sale, most people who want to get a good deal on a distressed property in Spokane are more likely to buy Bank-Owned, HUD and Short Sale properties. As long as you are qualified, you can purchase them with lender financing.

Spokane Bank Owned Properties
Bank owned properties are properties that have already been through the foreclosure process, and were not purchased at the Trustee Sale (see reasons above) so they revert to the Bank or Lender who issued the mortgage. Usually the bank goes through a process to assess the condition, cure any liens, and estimate the market value. Then they list the property with an agent. These are also called REOs which stands for "Real Estate Owned." These properties can be great bargains. In most situations a bank will be looking for a quick sale, and you may need to be prepared to act quickly to avoid competing offers. There are some fantastic REO buys in Spokane, call or email us for a list.

Spokane Short Sales
A "Short Sale" is a situation where the bank may accept less than what the owner still owes on the mortgage in order to avoid foreclosure. Many lenders will agree to accept the proceeds of a short sale and forgive the rest of what is owed on the mortgage when the owner cannot make the mortgage payments. By accepting less than what is owed, the lender can avoid a lengthy and costly foreclosure (see above) and the owner is able to pay off the loan for less than what he owes. The benefit to the Seller is that a short sale is far less devastating to their credit than a foreclosure.

You should expect the offer and response process to take longer than normal on a short sale, because it needs to go through the approval maze at the bank. But it can be worth the wait if you can get a great home at the right price. We have a good inventory of these homes in Spokane as well. Call or contact us for a list.

Spokane HUD Homes
A HUD Home is a property that was previously financed with an FHA insured mortgage and where the owner has defaulted on the loan. The lender then forecloses on the home. FHA pays the lender what is owed; and the lender transfers ownership of the home to FHA/HUD. Then, HUD sells it at or below market value.

HUD Homes are sold through "Participating Real Estate Agents." (Exit Real Estate is a HUD-registered broker and we are approved agents). All offers must be submitted through an electronic bidding process. Call us today for a list of these homes. Depending on inventory and location of these Spokane homes, there can be competition, so you need an agent who can notify you when they hit the market.

In closing, if you decide to buy a distressed property of any type, you should use caution and due diligence and be comfortable with what you are buying. These types of sales are typically offered as-is, so you will certainly want a full inspection. Additionally, all require lender prequalification at the time of offer. We can guide you through the process from start to finish, providing professional representation at no cost to you. We have access to Spokane Short Sales, Spokane Bank-Owned Properties, and Spokane HUD homes. Give us a call so we can discuss your objectives and start a custom search. Or, go to our website to request distressed property information via email. We do not charge for this information. When you're ready to look at some homes, just let us know and we'll get you in.

The $790 billion stimulus package signed by President Obama today increases the home buyer tax credit to $8,000, drops the repayment feature, reinstates last year's 2008 loan limits for FHA, Freddie Mac, and Fannie Mae loans, and provides $2 billion in additional funding for states and localities to be used to purchase, manage, repair and resell foreclosed and abandoned properties.

Homebuyer Tax Credit. The bill provides for a $8,000 tax credit that would be available to first-time home buyers (those who haven't owned in at least three years) for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009. The credit does not require repayment for buyers who hold onto their property for at least three years. The three-year minimum holding period is a safeguard against speculators' use of the credit. Most of the mechanics of the credit will be the same as under the 2008 rules: the credit will be claimed on a tax return to reduce the purchaser's income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.

The legislation also extends the effective date of the credit to December 1 from June 30, and extends eligibility to borrowers who buy their home with the help of state or local financial assistance that comes from the proceeds of tax-exempt mortgage revenue bonds. The start date for the first time homebuyer credit is January 1, 2009 through and before December 1, 2009.

FHA and conforming loan limits. Specifics have not been released but reports indicate that the 2008 limits have been reinstated for 2009 except in those communities where the 2009 limits are higher. Additional increases in individual communities may also be available at the discretion of the secretary of the U.S. Department of Housing and Urban Development.

Foreclosure mitigation and neighborhood stabilization. Funding for states and localities to be used for neighborhood stabilization activities for the redevelopment of abandoned and foreclosed homes are authorized. Some news reports put the funding level at $2 billion.

Rental assistance. Up to $1.5 billion to provide short-term rental assistance and other aid for families during the economic crisis.

Transportation infrastructure. Up to $29 billion for highway construction projects, $8 billion for rail projects.

Rural housing development. Increased funding for the Rural Housing Service direct and guaranteed loan programs.

Low-income housing grants. Allow states to trade in a portion of their 2009 low-income housing tax credits for Treasury grants to finance the construction or acquisition and rehabilitation of low-income housing, including those with or without tax credit allocations.

Tax-exempt housing bonds. Tax-exempt interest earned on specified state and local bonds issued during 2009 and 2010 will not be subject to the Alternative Minimum Tax (AMT). In addition, financial institutions will have greater capacity to purchase tax-exempt state and local bonds.

Energy efficient housing. Grants for energy retrofits for federally assisted housing (Section 8), funding for energy efficiency and conservation block grants to states, increases in the residential tax credit through 2010 for certain energy efficient upgrades and $5 billion to weatherize low-income homes.

This article courtesy of:

Greg Wright
2009 President
Washington REALTORS®

In an effort to invigorate the national housing industry, the Senate voted Wednesday night to give home buyers a tax break of up to $15,000. The proposal would allow a tax credit of 10 percent of the value of new or existing residences, up to a $15,000 limit, which would be applied to their tax bill. Current law provides for a $7,500 tax break for the purchase for first-time buyers only.

Consumers would be allowed to spread out the credit over two years, making it possible for those who pay less than $15,000 in taxes to benefit. Anyone who buys a home within a year of the bill's signature would qualify. To deter speculators, buyers must occupy the house as their main residence for at least two years.

The proposal was a victory for Republicans eager to leave their mark on the stimulus bill at the heart of President Obama's recovery plan. Democrats readily agreed to the proposal, although it may be changed or even deleted as the stimulus measure makes its way through Congress over the next 10 days or so.

I will be keeping track of how the House votes on this, and when the proposal is put into effect. In my opinion, this is already a great time to buy in Spokane - getting up to $15K tax credit is some serious icing on the cake!! There are lots of great homes to choose from, interest rates are phenomenal, and there are still many excellent loan programs available to buyers. We work with many lenders who are still offering financing on conventional, FHA, USDA, VA, and nonconforming loans. Call us today and we'll connect you!

US News and World Report listed Spokane in their "10 Great Low-Tax Places to Retire" Report. They created a search tool that ranks and analyzes more than 2,000 locations throughout the United States, according to various criteria including cost of living, healthcare, climate, and recreation.

Spokane is well known as a regional health care destination, and certainly our lack of a state income tax helped us make the top 10 list. Also, our home prices are still below the national average. Author Emily Brandon noted "The business-friendly tax structure of Spokane, Wash., is key to attracting prime technology jobs to the area. After work, retirees can stroll along the Spokane River, which runs through the center of town, or hike in the nearby mountains."

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Spokane was also touted by SmartMeetings.com as one of the best spots to host a meeting or event. With the recent expansion of the convention center, Spokane offers options for meetings of all sizes. Our compact downtown core makes it easy to experience the local flavor between meetings with dining, shopping and entertainment all within a few blocks.

In the article, Julie Keller states "Spokane offers yet another scenic venue for meetings. The city has, in recent years, undergone a cultural and developmental renaissance that combines a respect for history with state-of-the-art updates like free Wi-Fi throughout the downtown core. The city's downtown shopping center, 100-acre Riverfront Park, the Spokane Falls Skyride and a 26-foot-long Radio Flyer Wagon interactive sculpture are all within walking distance of the LEED-certified Spokane Convention Center.

The convention center offers more than 164,000 sq. ft. of meeting space, but Spokane's other venues, many of which also espouse green philosophies and historical consideration, are equally enticing for an event. The Davenport Hotel, which was recently named by Condé Nast Traveler as a finalist for "Best Hotel in the U.S. and Canada," and the Martin Woldson Theater at The Fox, an Art Deco masterpiece, are two such examples."

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Spokane is a great place to live, so I always like to see us get good press. For more information or to request a free Spokane Relocation Package, visit our website.