SHORT SALE

Not a Short Sale..Not a Bank Owned, A Brand New Build For $500.00 Move-In!

No kidding. I know a builder who is competing with short sales and foreclosures and winning. You can get in for $500.00 with a PITI payment of only $903.87 per month, including HOA! A 1321 sqft single level home will cost $129,990. a 1767  sqft home only $137,900.  These  new homes are not dingers either. They are energy efficient, using Low E-Windows, 13 seer A/C units, Water-saving Plumbing Fixtures and Tile Roofs. 9′ ceilings, cultured marble vanity-tops, and raised panel interior doors are some of the upgrades included. Great kitchens include microwaves, deluxe dishwashers, spacious pantries and oak cabinets.

You get a large pool-sized lot, a covered patio, a door into the garage from the side, front and rear hose bibs. All the options you might want are already included. I only mentioned some of them.

Oh, did I mention that they come with a Side by Side Refer, Washer/Dryer and a 40″ LCD TV?

So, $5,000.00 in incentives, An $8,000.  tax credit, Side by Side Refer, Washer/Dryer and a new Big Screen TV. Low move-in (less the rent) and low monthly payment, again less the rent. What are you waiting for? Homes ready to move into now.

Michael Manning

EXP Realty, LLC

602-738-8236

SHORT SALE

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 — and 20 percent of mortgage refinancings. Just three years ago, the FHA’s share of the mortgage market was 3 percent.
Among the steps outlined by Housing and Urban Development Secretary Shaun Donovan in congressional testimony Wednesday were plans to increase the down payment and FICO score required. The agency also may ask Congress for permission to increase either the upfront mortgage insurance premium, the monthly premium or both. Details of the plan are expected next month.
“We have made the decision to exercise our authority to increase the upfront cash that a borrower has to bring to the table in an FHA-backed loan — to make sure that FHA borrowers have more ’skin in the game’ and a stronger equity position in their loans,” Donovan said in written testimony submitted to the House Financial Services Committee.
One detail Donovan did provide is that sellers would be able to help buyers with only 3 percent, rather than the current 6 percent, of “concessions” that help fund closing and loan-related fees.
The moves are part of a plan by the FHA to lessen risks to its portfolio; an independent actuarial study found the agency’s insurance fund reserves have fallen far below the congressionally mandated minimum. The agency also plans to take steps to increase FHA capital and to hold lenders more accountable for the quality of loans they write.
This may be the time to get off the fence..
Please feel free to contact me with any questions you may have. I will be happy to assist you in the purchase of your new home. I can be reached at Julie@phoenixpowersearch.com or 480 628 2967
I look forward to hearing from you!
Chicago Tribune Article

SHORT SALE

List of items you will need to get your short sale closed quicker.

I know what you are going through, I feel your pain and I want you to know I am here to help you.

Are your mortgage payments at least 3 months behind?  Have you received that dreaded letter, Trustee Sale?

As a Realtor, I have sold many short sale homes, more on the buyers side, but also on the sellers side.  I know what you are going through and I can advice you what to do and help you list your home.

DO, keep your house clean and free of clutter

DO NOT, punch holes in walls

DO, keep up with your HOA payments as much as possible.

DO NOT, strip away any of the appliances

DO, get a hold of a Realtor (Rachel Anderson) and allow me to help you.

REMEMBER: Your Realtor will give you an estimated sales price based on the comps in the area, however it is ultimately up to the bank(s) to come up with a sales price.

Here is a list of some of the items you will need to get ready if you are considering a short sale before the foreclosure.

2 most recent pay stubs

2 years of the most recent tax returns

2 most recent bank statements

A hardship letter describing why you can no longer keep up with your payments. There are some other items you will need and some banks require specific paperwork, but this will get you started.

Get a hold of me today to get your house on the market before the foreclosure goes into affect.  Short sales are better on your credit then a foreclosure, and it doesn’t hurt to try.

Rachel Anderson 480-309-7968

SHORT SALE

The Highest Offer Doesn’t Always “Win”

When the market was at it’s peak, I witnessed agents writing offers on the hoods of their cars for a newly-listed home I showed to my clients. The agents and their cars were lined up like a Nascar race along the street.  It was one of the craziest experiences I have ever seen in my career! It appeared as if a gun had fired, and the Realtors were in a race to the “write an offer as fast as you can” finish line.

My clients fell in love with this home and wanted to submit an offer. They were anxious that so many offers were being written right before their eyes on the driveway, but felt it was worth the competition to own this home. As the agents were scrambling for their pens and shuffling papers around, I was on the phone with the listing agent establishing rapport with her. I inquired and listened as she explained what was important to her seller’s in an offer.

“A solid offer from a solid buyer” was what she told me. What did they really mean? Hmmm…This is where your Realtor needs to accurately read between the lines.

We went ahead and offered full asking price (solid) because of the activity on the home, and I suggested a $10K earnest deposit (solid). I submitted a loan approval (solid), along with a letter introducing my clients character, their work background, and explaining their strong (solid) desire to buy the home.

You get the point…

Submitting the highest offer or going above asking price, doesn’t always equate to a “solid offer and solid buyer”. There are other ways to reflect your solidity as a buyer that have nothing to do with your checkbook. For example, taking the extra step in writing a letter on behalf of clients, can make or break a deal. I have done this in the mortgage business with letters written directly to the underwriters, and it has saved the loan approval. We all act on emotion and like doing business with people we like and feel a connection with. We want to see them succeed.  A letter of explanation or introduction is a simple, cost-free and effective way of adding a personal touch.

It turns out that we were one of 3 out of the original 14 submitted offers to receive a counter offer. Our counter read that the seller’s agreed to the purchase price of the home. That was it. There were no other terms stated.

Sign the counter offer and submit it, right? Wrong.

I called the listing agent to see if I could gain more insight into the seller’s true needs. She revealed new information: “The seller’s just placed an offer on a home and want to move as soon as possible.” Perfect.  I just discovered the seller’s new hot button: Time is of the essence. She also shared that several counter offers went out. Knowing we were not the only ones to receive a counter, it was crucial that I gain my clients a first place position and to accurately access how to accomplish that.

To make the deal firm, my clients said, “Let’s counter and increase our purchase price offer by $15K.”  That sounds logical, and my clients really love this home,  so why not pay a little more to entice the seller’s to sign our counter? Well, read on…

The seller’s agreed with our offer on the price of the home; otherwise they would have countered higher. The seller’s only concern now is that the buyer has the ability to perform on the contract in a timely fashion so they can move ahead with the closing of their new home.

I recommended that we counter with the $10K earnest deposit to go “hard” or non-refundable after the inspection period and to close escrow in 20 days, not 30.

We received the signed counter and my clients got their dream home!

After close of escrow, I called the listing agent to thank her for a smooth and successful transaction. The listing agent said, “Your offer wasn’t the highest, but it met my clients needs perfectly. Your clients demonstrated their ability to close escrow; which was by far the most appealing asset of all offers we received.” She also added that the phone calls and questions showed a genuine concern not only for my buyers, but also for her sellers. None of the other agents had even bothered to call and simply submitted the offers.

Presenting an offer isn’t rocket-science. But understanding what makes a seller “tick” and leveraging that information into successful negotiations, is why you should use a buyer specialist.

The moral of the story?  ”The early bird gets the worm, but the second mouse gets the cheese.”

For exceptional negotiating on Arizona’s best homes, please call Stacey @ 480.747.2664 or drop me a note at stacey@scottsdaleparadise.com

SHORT SALE

$8,000.00 Tax Credit For First-Time Home Buyers

All you first-time home buyers who are waiting for just the right time to buy, should consider that Now is the best time to purchase that first home. The $8,000.00 tax credit program is going away at the end of November. That means if you have been considering buying a short sale which typically takes 90+ days to process, it’s too late. Unless the bank has processed one where the buyer dropped out. If there has been a broker’s price opinion, and a negotiator assigned, you may still have a chance to purchase that short sale. A better choice at this time would be to look at only bank owned homes. Homes that have been foreclosed on will go through the process quicker. You still have a chance to use the $8,000.00 tax credit. If you find a home that is not a short sale or a foreclosure, and the seller wants a quick close, you still have a chance for that as well. Another option would be a New Build Home. Builders typically have spec homes available, where you can pick the flooring and counter-tops. They can close in as little as 30 days. Builders are anxious to unload their inventory, especially at months end. They also offfer incentives such as $$ off the price, special financing options or upgrades at a discounted price.

To qualify for the program your income cannot exceed $75,000.00 per year for a single person or $150,000.00 per year combined income for a married couple. If one partner has owned a home with-in the past 3 years, you will not qualify. Vacation homes and investment properties do qualify, as well, as long as you meet the above requirements.

So get off that fence! It is now The Time To Buy that First Home!

Michael Manning

HomeSmart BuyerTours Team

480-882-2727

602-738-8236                                                                                                                   

 

 

 

SHORT SALE

Multiple Offers?! Over LIST PRICE?!! What do you do?!!!

So you’re out driving around with your Realtor or ME! After you we went through 20+ homes over the past 2 weekends waiting by the door while us Realtors try to open lockboxes with our super duper trusty decoder thing like we’re cracking a safe, that was call SUPRA eKey, which is EVERY Realtor should have on their phone because it’s the cool thing to have!

You’ve seen short sales, you’ve seen REO’s, you’ve seen the “backyard oasis” that is more of a lagoon that makes the Toxic Avenger looking like the next Bachelor…

BUT alas the door opens and to your surprise the utilities are actually on. You take a whiff and smell the Hawaiian Breeze scent from a Glade plug-in. There is hope! Wood floors?! REAL WOOD?! Wait theres clean carpet AND Granite with stainless steel?!!

Your agent checks days on market, it says 1 day. Then you ask “how much is this house?!” They say $150,000 and it’s a BANK OWNED PROPERTY!

Your wife looks at you with that glaze in her eye like the night you fell in love with her… You scream “PUT AN OFFER IN ON THIS HOUSE!”

As you’re waiting anxiously at home your Realtor calls you with some disheartening news… “this property has 5 offers already, 1 cash, and 2 over LIST PRICE!”

NOT TO PANIC!

What do you do?! Let’s look at the numbers for a sec here. You most likely put in a a clean offer at full price and didn’t even ask for closing costs. I can definitely see the frustration here. Automatically you’re thinking why would anyone overbid on a house in these times?

Your Realtor comes back with some analytical data for you. The home is located in a new subdivision where the builder is still selling homes, they’re FIRM at $180k with none of the same options you see in the subject property. Recent 3 month sales shows $140-180’s.

Not to worry, the homes in the $140’s are REO’s you’ve seen those properties and they’re in bad shape. The homes in the $150’s are bare with cultured marble and needs new counter top along with carpeting. The homes in the $180’s are just like the one you have an offer on!

So now what you thought was paying full price for a home was top of the market, we just realized it’s priced below market!

Moral of this all is make sure you do your research! Compare APPLES to APPLES, everything you like about one home make sure it compares to another home. Just because the house you want to buy is $10,000 more than 2 that just sold for $150,000 doesn’t mean it’s overpriced. Look at all the facts, are you looking at a home that has a pool, bigger lot size, more upgrades, next to school/park? No move in maintenance? Question you should ask yourself is “if i couldn’t buy this house, could i find another just like it for THIS price?!”

Remember when putting an offer in on a house do the numbers work? Just because you see homes listed all over $160k doesn’t always mean they’re actually worth that! I know i have tons and TONS of boxes full of comic books at my moms house that i thought were worth tons and tons of money. She always told me, “it’s only worth something, if someone will pay that price!”

Don’t get discouraged some people will overbid, and run into the problem where the house won’t appraise. Buying a home IS an emotional process but don’t let you emotions get the best of you, do your homework and make sure what you offer makes sense!

Emotion is the Barret Jackson and a 63′ split window just pulled up with matching numbers everywhere… starting bid at $60,000

Dalat Nguyen
602-741-3162
dalat.nguyen@phoenixpowersearch.com

SHORT SALE

Went through a short sale or foreclosure, now what?

So, you have sold your home as a short sale, now what?  How do you rebuild your credit, how long will it be before you can purchase a home?  How long will your credit remain bad? 

Where do you live after you have been through a short sale?  Most sellers are trying to avoid a short sale on their home and are willing to work with you and your situation.  Apartment complexes are pretty strict on their credit scores and if your credit score is botched because of short sale or foreclosure you will pay more in rent a month.

Lenders are saying it can take up to 3-5 years to be able to purchase a house after a short sale.  Right now this is also the same for a foreclosure, but there have been discussions to go 5-7 years before allowing someone to purchase a home after a foreclosure.

There is different information out there and to get the most up to date information here are a couple of great websites:

http://www.foreclosurefish.com/blog/index.php

http://www.mortgagefit.com/credit-rating/credit-repair.html

If you are considering to do a  short sale here is a great website to help you get started.  Make sure your agent is experienced in Short Sales and knows the process very well.

Short sale guidance:

http://ezinearticles.com/?Short-Sale-Guidance&id=2249889

If you want more information or are looking to short sale your property get a hold of me at 480-309-7968 or rachel@phoenixpowersearch.com

SHORT SALE

Why should I do a final walkthrough?

First off, a final walkthrough is when you and your agent go through the property shortly before you do final signing/close escrow to double check and make sure everything is as it was when the offer was submitted.

I recently heard a story that changed the way I will do business, and left me in a state of shock.  Special heads up to any potential buyers and sellers.

This particular property was a Short Sale, meaning any buyer would be dealing with an owner who owed more than the home’s fair market value, thus having to get the lender’s approval to sell for less than the loan amount (a long and painful process).

Anyways, the owners had vacated the home and now live out of state, leaving the home unoccupied while it was listed with their agent.  A Realtor friend of mine showed the house, and it had everything the buyers wanted, including appliances, so they submitted an offer.  The offer goes through, and a whopping 6 MONTHS LATER, the deal FINALLY closes!!  One thing though…where did the refrigerator, washer and dryer go that were there when the offer was written?

Turns out the listing agent, without the knowledge of the seller, found tenants to rent the home and was pocketing the monthly rent.  When the tenants were kicked out/left, they took the appliances with them.  Now this obviously presents a real sticky situation…one in which no one wants to get stuck.  I will have to ask my Realtor friend how the situation resolves, but I would hope the shady listing agent used some of those “rental payments” to purchase new appliances for the buyer, since it was their fault the appliances were taken.

TO THE SELLER: Too bad you had a bad agent listing your property=[  If this issue would have been noticed prior to close, you would have been in breach of contract, risking the loss of your buyer, and a potential FORECLOSURE!  This is a bad situation that I hope the seller did not see coming, and could not avoid with security services or someone watching over the property.

TO BUYERS: ALWAYS ask about a FINAL WALKTHROUGH when interviewing an agent/purchasing a property.  If your agent denies you one, or says it’s unnecessary, go with another real estate agent, or else you could end up in a situation like this!

contact me directly at 623-399-0804 or colin@phoenixpowersearch.com.  I would be glad to walk through any home with you.

SHORT SALE

Horse Lovers Delight At The Equestrian Centre In Queen Creek AZ

SHORT SALE

Short sales? What is a Short Sale?

“What is a short sale, does it take a short time to sell?”

This is a question I get all of the time.  Actually before I became a Realtor, I too questioned the definition of a short sale.  So hopefully I will describe it, give you examples and help you understand it a little bit better.

Short Sale Definition:  a sale of real estate in which the proceeds from the sale fall short of the balance owed on a loan secured by the property sold.

Short sales, are usually executed by a seller to prevent the home ending up in foreclosure.  In most situations not all, but some homes do not sell within the time frame given by the lender and end up in foreclosure anyway.

The process begins with the seller and the lender negotiating a sales price and a listing agent listing the property.  The listing agent does his/her market analysis of the area and typically lists the house at market value. The seller has to provide all necessary paperwork to the listing agent and to the lender.  Most of the time, one clients file can have more then 200 pages of documents needed by the lender. Make sure you keep all communications back and forth so you have back up for everything.

A short sale listing can be uploaded into the MLS and advertised at $150,000 for 4 months.  After the 4 months of advertisement and maybe a couple of contracts the bank can come back and say we are not going to accept anything less then $250,000.  So each person that has a contract on that house at $150,000 has to be told that the bank isn’t accepting anything less then $250,000  So the majority of the time everyone walks away and the house is back on the market at $250,000.

Why don’t we wait until the bank approves the listing price and then list the home at the correct price? 

Well, great question, when a client contacts an agent to list their home and  if the agent accepts the listing, we have a strict time frame to follow to upload the listing into the MLS.

Agents really play Russian Roulette and hope the list price they choose, will be near the lenders Broker Price Opinion or BPO will come back as.

Typically now a days, when a buyers agent notices that a home is a short sale and the price still hasn’t been approved by the lender they stay away from the listing. 

Preparation and communication is key when dealing with a short sale.  Let your buyers know that you can possibly wait 3 months or longer just to hear if your offer has been accepted.  After an acceptance there is still counter offers, addendum’s, and the lenders personal contract. 

If you have the patience and the time, short sales are great deals and they are closing.  Make sure your agent stays on top of the listing agent, although the listing agents hands are tied the majority of the time in getting the process moving any faster.

Short sales still affect a persons credit, but it doesn’t hurt as bad as a foreclosure.  So, in short, short sales are a sellers last effort to sell their house before it ends up in forecloure……

If you have any more questions or concerns about this or any Real Estate transaction please contact me directly at  480-309-7968  or rachel@phoenixpowersearch.com

Happy House Hunting!