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Time to break out the skis!

by Allison Simson

We at Summit Real Estate recently attended a breakfast that was hosted by the COO's (the big dogs!) of all the local ski resorts.  It's an annual event and the information they provide is always very interesting and fun!  Here's a recap for you:

  • Our economic outlook is very good and we should begin to enjoy early season visitors and the visitations will remain strong throughout the year.
  • Most of the areas have major capital projects that are nearing completion:
    • Loveland will be unveiling warming facilities on the mountain with operational toilets -- yea! As well as a 3600 sq ft addition to their base lodge!
    • A-Basin is hurrying to complete an expansion of not only their new base area- the restaurant called "The 6th Alley", but new terrain as well.  They will be expanding the Beavers area in the next few years.
    • Copper has been working hard to create the best place for our Sochi Olympic team to practice early season -- and they have introduced "Sherpa" -- a mobile device app that gives you real time, on mountain, tips for finding new snow, the lodges, and secret powder stashes.  Debuts Nov 1 for iPhone users - check it out!
    • Keystone continues their emphasis on family skiing -- even designating an area as a "family ski zone" with an entire ski trail for families and family parking.
    • Breck is, of course, working on the Peak 6 expansion including new lifts, new warming hut, new patrol hut, and awesome skiing -- for a preview watch this. Turn your speakers up and get ready to feel goosebumps!  The video is AWESOME! 

See you on the slopes! 

 

And Here's Your Morning Coffee!

 

 

 

 

The Government Shutdown and Home Loans

by Kelie Gray

6 Ways the Government Shutdown Affects Home Loans

The last time we went through a government shutdown in 1995, it was a pain, but not a panic. With Monday's news that the government is in the midst of a shutdown, it's important to remember that all mortgages purchased and securitized by Fannie Mae and Freddie Mac will not be affected, since their operations are paid for by the fees charged to lenders and borrowers.

Others may not be so lucky. The six points below illustrate how government-affiliated mortgage loans and critical steps throughout the loan process may be impacted:

  1. Federal Housing Administration (FHA) Loans: With the shutdown, we may see delays but not a complete stop to FHA loan closings. A report from the Department of Housing and Urban Development has stated that FHA's Office of Single Family Housing will remain open for business, albeit with a smaller staff. The office will continue to endorse loans and it doesn't expect the impact on the housing market to be "significant, as long as the shutdown is brief."
  2. Department of Veterans Affairs (VA) Loans: Like the FHA, disruption is possible?but not absolute. The VA will continue to guarantee mortgages for Americans who have served in the military, since these loans are funded by user fees. It warned, however, in its September 25th contingency plan, that Loan Guaranty certificates of eligibility and certificates of reasonable value may be delayed.
  3. IRS Tax Transcripts: If a loan requires the verification of at least one previous IRS tax return, this process may be delayed. While prior years' tax transcripts can be ordered online, there is no indication whether an automated fulfillment system will be impacted.
  4. Verifications of Employment, for Government Employees: If a federal government employee is seeking a mortgage, and his employment verification is required prior to closing, a lender may be unable to verify this during a shutdown.
  5. FEMA Homes: Homes in flood zones would not be able to close, as flood insurance could not be obtained.
  6. USDA Loans: During the shutdown, the Department of Agriculture's doors will be shuttered. According to the USDA, no new housing loans or guarantees will be issued through its Rural Development programs. The USDA has also warned that a long shutdown will result in construction setbacks and "a substantial reduction" to available rural housing relative to population.

Special Thanks to Jennifer Cleary of Colorado State Bank and Trust Mortgage for the information!

 

To Rent If You Can't Sell?

by Allison Simson

Should I Rent My House If I Can't Sell It?

Posted: 07 Oct 2013 04:00 AM PDT

For rent real estate sign in front of house

There has been a lot written about how buying a home is less expensive than renting one in most parts of the country. Rents are skyrocketing and homes are still at great prices. These two situations are also causing some sellers to consider renting their home instead of selling it. After all, a homeowner can get great rental income now and perhaps wait until house values increase even further before selling.

This logic makes sense in some cases. We at KCM believe strongly that residential real estate is a great investment right now. However, if you have no desire to actually become an educated investor in this sector, you may be headed for more trouble than you were looking for.

Before renting your home, you should answer the following questions to make sure this is the right course of action for you and your family.

10 Questions to Ask BEFORE Renting Your Home

1.) How will you respond if your tenant says they can't afford to pay the rent this month because of more pressing obligations? (This happens most often during holiday season and back-to-school time when families with children have extra expenses).

2.) Because of the economy, many homeowners can no longer make their mortgage payment. What percent of tenants do you think can no longer afford to pay their rent?

3.) Have you interviewed a few experienced eviction attorneys in case a challenge does arise?

4.) Have you talked to your insurance company about a possible increase in premiums as liability is greater in a non-owner occupied home?

5.) Will you allow pets? Cats? Dogs? How big a dog?

6.) How will you actually collect the rent? By mail? In person?

7.) Repairs are part of being a landlord. Who will take tenant calls when necessary repairs arise?

8.) Do you have a list of crafts-people readily available to handle these repairs?

9.) How often will you do a physical inspection of the property?

10.) Will you alert your current neighbors that you are renting the house?

Bottom Line

Again, renting out residential real estate historically is a great investment. However, it is not without its challenges. Make sure you have decided to rent the house because you want to be an investor, not because you are hoping to get a few extra dollars by postponing a sale.

 

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Photo of Summit Real Estate Real Estate
Summit Real Estate
The Bright Choice
330 Dillon Ridge Way, Suite 10
Dillon CO 80435
970-468-6800
800-262-8442
Fax: 970-468-2195

Allison Simson, Owner/Broker, is a licensed Colorado Real Estate Broker