Market Watch

Another Band-Aid Suggestion From A Bank!!!

If you are 100K plus underwater in your homes value…do you think it would be a good idea to further encumber the property? Aurora Bank thinks so. I was on a call with a client when she contacted her bank yesterday to see about what options would be available for her to stay in her home. She is four months behind in her payments…equaling around $10,000. We went down the usual path of talking about a loan modification (which she does not qualify for as her husband recently lost his job), and forbearance…which she was considering. After all of that, the customer service agent told us that she had another option to become current. They (Aurora) have a third party lender who would lend her the money at I think he said 15% interest so she could become current and “save her home from foreclosure”. WHAT!!??? I almost fell off my chair! Even the suggestion of further encumbering the property is ludicrous. Additionally, she can not afford her payment now…what is the “third party lender” thinking? How do they think they will ever get their investment back? Of course I see Aurora suggesting this as they get some of the back payments and can avoid foreclosing on the home. For awhile... 

$500.00 Move-In! Exceptional Value..Exceptional Home!

Yes, only $500.00 to move into a brand New Home! And it’s not a dinger either. This 1605 sqft home is loaded with upgrades. Upgrades like granite counter-tops. Tile floors in the kitchen, baths and utility rooms. The blinds are already installed. And get this…the home comes All Appliances. A beautiful Side by Side Refer, Built-in Range, Dishwasher and Microwave. And get this..a Washer and dryer!! The home comes with blinds too. This 3bed/2bth single level home is ready and waiting for you.  How much? Just $139,990. Remember, you can move in for $500.00 Snowbirds, why rent a space year after year? You can own a brand new home. Buy now while they are priced so low. These prices and incentives will not last. First Time Buyers, close on this home before April 30th and you may qualify for the $8,000 tax credit. Put your tax return to work for you. Contact Michael Manning at 602-738-8236 for more info. My e-mail is michaelbmanning@cox.net or michael.manning@phoenixpowersearch.com  See a video of this home. http://picasaweb.google.com/lh/sredir?uname=judy.eldc&target=ALBUM&id=5431123299653348625&authkey=Gv1sRgCPHRxYTd6PPITQ&feat=email  

WHAT IF there was a simple fix to the short sale fiasco? What am I missing?

I do not normally re-post other agents blogs…but I am making an exception today. This agent’s solution is too simple for the government to actually consider it…but WHAT IF? Via Amy Jones (Chandler, Arizona RE/Max Excalibur): I’ve been thinking…  could there be an easy fix to the short sale industry mess? What if sellers were required to have an approval from their lender PRIOR to listing their home for “short sale”?  What if the lender ordered the BPO establishing the sales price that the lender would accept PRIOR to the seller listing the home?  What if the lender issued a letter indicating the sale was approved and that the lender would accept $xxx for the sale PRIOR to listing the home? What if a real estate agent could not list a home without the short sale approval letter in hand? What if a buyer knew exactly what a lender would accept for a sales price? What if buyers and sellers were no longer wasting their time on a short sale that will never close at the price listed in the MLS? What if real estate agents could go back to actually marketing homes with reasonable response times to move the inventory? Could it be this simple? Just wonderin.  

How’s the Market?

How’s the Market? This is a question I get asked almost daily and like most of us in the business, we know its coming, we are prepared with data and stats and folders full of info, but yet I am always a bit caught off guard when it hits me. Whether its from friends who know I am in Real Estate and want to just shoot the breeze, or family who dangle the potential of someday using me as their Realtor to get me to do things like, help them move or watch their dogs or baby sit for them or from Clients who really truly want to know because it affects their decision making process, I never know exactly what to say. It’s not unlike the age old question of “Is the glass half empty or is it half full?” The real answer to that question is…Depends who is ‘pouring’ and who is ‘drinking’! Right? I mean..if your pouring…then..of course its half full…but if your drinking, then well, it will appear to be half empty. So the answer to the question of “How is the market” would then have to depend on who is “Pouring” and who is “Drinking” or in other words…it depends on who is “Buying”... 

Buyer’s Market With A Seller’s Twist: An Interesting Real Estate Concoction

Happy New Year!  Now what? Is one of your resolutions to be a homeowner?  Whether you are a first timer, down-sizer, moving upper or empty nester…you get the idea… it’s time to get moving!  As a buyer, this may be the perfect time. What is a Buyer’s Market with a Seller’s Twist? Home prices are at an unbelievable low and with inventory high, this can be a great opportunity for a buyer.  This makes for a great Buyer’s Market. Currently, of the homes that are sold, about 60% are foreclosures.  This means that the seller is most likely a bank, and has probably hired a company to represent them such as a property asset management company. There is good news and bad news with buying a home that is bank owned.  The good news is you could possibly get a great deal with listing prices many times lower than market value. Here’s the Seller’s Twist:  The bad news is that you MAY have competition and most likely, there will be a Seller’s Addendum that will be added to the contract and you the buyer will have to accept in order for the seller to accept your offer.  And, believe me, if you as the buyer won’t accept the Seller’s... 

Hang Your Christmas Lights in Arizona

As I was driving along the other day I wondered where the idea of Christmas lights came from. Each year thousands of people spend countless hours preparing their homes with strands of lights and extensive decorations to ring in the holiday season. So I went on a quest to share the origins of Christmas lights with our EXP Realty travelers and home buyers, and share some of the excellent displays of holiday cheer in my neighborhood. Originally the custom was to decorate a Christmas tree with lights, but it wasn’t until the 1960s in the U.S. when tract housing become increasing popular that lining the eaves of homes with lights grew in popularity. Back in the 17th century a tradition of using small candles to light up the tree started. It took a couple of centuries before the practice grew in popularity and spread to Germany and Eastern Europe. Initially the candles were melted against the tree or attached with pins. Later in the 19th and 20th century candle holders were used and later lanterns which held the candles. With the advent of electricity Christmas tree decoration was ready to take a big leap. Towards the end of the 19th century; 1882 to be exact, Edward Johnson an assistant... 

Are you an FHA buyer but still “on the fence” about buying?

There have been many rumors flying around regarding the expected adjustments to the FHA loans provided. Do you want to use FHA financing due to the lower down payment requirements, experiencing some credit issues and or wanting to ask the seller to contribute up to 6% concession? If you are and are counting on utilizing FHA loan products for the purchase of your new home, but aren’t quite ready to get off the fence…You may want to re-think your current position. Per a recent article in the Chicago Tribune – FHA-insured mortgages have become the loan of choice — realistically, the only option available since the private mortgage industry’s problems arose — for consumers who are eager to purchase a home but don’t have a significant down payment or stellar credit history. Currently, borrowers have to make at least a 3.5 percent down payment and have a minimum FICO credit score of 500, but most participating lenders require borrowers to have a score of 620 or higher. Those lending requirements have meant a banner year for the FHA. It has insured almost 30 percent of home purchases — more than 75 percent of which are to first-time homebuyers —... 

Suntech chooses Arizona for new Solar Project.

Here is some great news for the Arizona economy. Suntech A Chinese-owned solar panel maker is planning to build a 100,000-square-foot headquarters and manufacturing plant in the Phoenix area. This is huge for the economy and will initially bring 75 jobs to the local area and expand over the years to come. Suntech originally started with 15 states that were a consideration for this project, it came down to Arizona and Texas, Arizona won! Here are some great links to read more information on the new compnay coming to the area. www.suntech-power.com http://www.google.com/hostednews/ap/article/ALeqM5jyM3IImsM90llBP3XCxeAQ92JJjwD9C0NUH00  

**UPDATE**Not only extending the 8k tax credit, but opening it up for others too!!

Per the Associated Press .. November 5th, 2009 First-time homebuyers have been getting tax credits of up to $8,000 since January as part of the economic stimulus package enacted earlier this year. But with the program scheduled to expire at the end of November, the House voted 403-12 Thursday to extend and expand the tax credit to include many buyers who already own homes. The Senate approved the measure Wednesday, and the White House said President Barack Obama would sign it Friday. Buyers who have owned their current homes at least five years would be eligible for tax credits of up to $6,500. First-time homebuyers — or anyone who hasn’t owned a home in the last three years — would still get up to $8,000. To qualify, buyers in both groups have to sign a purchase agreement by April 30, 2010, and close by June 30.The credit would be phased out for individuals with annual incomes above $125,000 and for joint filers with incomes above $225,000. The newly purchased property must become the buyer’s primary residence. It can not be used for “vacation” homes. Please do not hesitate to contact me with any questions you may have. I am here to help. I can be reached... 

$8,000 Credit Extended and much more offered!

So we got the extension everyone so desperately needed to dive into home ownership.  The $8,000 tax credit is now extended until the end of April 2010.  Great news for those buyers who have contracts on homes that are short sales and haven’t heard anything.   This will allow you to continue to work with the bank and hopefully close by April 2010 of next year.  Lets all keep our fingers crossed for that. Also, a $6,500 tax credit will be given to existing home owners if they buy another home.  This too will expire at the end of April.  By offering this it will also help stimulate the economy so everyone has an incentive to buy now. These incentives won’t last forever, so don’t wait to “cash in”.  If you are considering purchasing a short sale home and want to use the tax credit, it is highly recommended that you enter into a contract at least 3 months before the bill is set to expire. If you are looking to purchase your first home, or your 50th, give me a call and lets find what you are looking for together. Take a look at this website for more updated information: http://www.google.com/hostednews/ap/article/ALeqM5hJJraNRE6DjWj2orF7SYJ12PADEAD9BPFFR01 Rachel... 

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