The following is a great information piece courtesy of Strategic Mortgage. For all of you who are or know someone needing the assistance this is a good time to start checking in with your mortgage company to see what it is that they can help you do... They got bailed out... we need to take full advantage of that!
Fannie & Freddie To Suspend Foreclosures Through New Year:
Additional Time Taken To Implement New Program
The initiative has come down from Fannie Mae and Freddie Mac to their network of servicers to halt all foreclosure and eviction proceedings between Nov. 26 2008 and Jan. 9, 2009, meant to give a recently announced rescue plan time to work.
The move is expected to give Fannie and Freddie additional time implement the new streamline modification recently announced and set to launch December 15th. The plan enables delinquent borrowers to get a modified mortgage that lowers payments to no more than 38% of their gross incomes.
"By delaying these foreclosure sales, the nation's servicers will have the opportunity to work with more borrowers who could qualify for a modification under the new [program]," said Freddie Mac CEO David M. Moffett in a statement.
As a result, Freddie has told its servicers to immediately contact the 6,000 borrowers who already have auction sales or evictions scheduled for between the specified dates to tell them the sales are postponed. Fannie estimated that 10,000 of its borrowers will be affected. Borrowers facing eviction between Nov. 20 and Nov. 26 were not expected to get relief.
The foreclosure suspension affects only a small percentage of homeowners facing foreclosure over the next two months. Although Fannie and Freddie mortgages account for more than half of all mortgages, they have relatively few of the most risky subprime loans at the center of the foreclosure crisis. "The vast majority of what's going into foreclosure are not Fannie Freddie loans," said Freddie Mac spokesman Brad German.
The Fannie, Freddie plan was unveiled on Nov. 11. Eligibility is determined by several factors: Homeowners must be 90 days or more late in their mortgage payments, owe at least 90% of their home's current value, live in the home on which the mortgage was taken and have not filed for bankruptcy.
The mortgage rate could be lowered to as little as 3% for five years. After that, it would increase by 1 percentage point a year until it hits either the market rate or the original interest rate, whichever is lower.Unlike previous federal efforts, participation by servicers is not voluntary. However, as mentioned in previous articles, this plan may not affect a great deal of at risk borrowers. We will continue to provide details of this plan and others as they roll out.
Monday, November 24, 2008
Tuesday, October 7, 2008
$700 Billion Bailout Bill
If you are asking yourself the question... What is this Bailout About anyway? You are not alone. A lot of us sat glued to our t.v.'s over the past couple of weeks waiting for the news on whether the colossal $700 Billion Investment would be passed, and if so what does it mean for America? The working people? Jobs? The Economy? Is there hope in the near future?
REVISED POINTS
Raising the limit on federal insurance for bank deposits from $100,000 to $250,000.
The bill also extends several tax breaks popular with businesses.
It would keep the alternative minimum tax from hitting 20 million middle-income Americans.
Provide $8 billion in tax relief for those hit by natural disasters in the Midwest, Texas and Louisiana.
I am including a 2 page info sheet on the Myths, Half-truths and Inconsistencies within the plan provided by Mike Fink of Countrywide Home Loans.
The Bailout: Myths, Half-Truths, and Inconsistencies
The mother of all bailouts is quickly turning into not just one of the largest financial events in history, but a heated political argument as well. Many questions still remain unanswered about how this plan is structured and whether it should be implemented at all.
You're going to get a different opinion from everyone you ask, but here are a few thoughts on four of the chief areas of debate getting tossed around.
Myth: The proposed bailout will cost taxpayers at least $700 billionThe $700 billion isn't a donation, a grant, or a gift -- it's an investment. The money will be used to purchase assets from banks at a steep discount, and then sold down the road once the smoke clears. The proceeds from those sales will go back to the Treasury and pay off the debt issued for the bailout. It's completely reasonable to assume taxpayers could in fact profit from this venture in years to come if done properly. In fact, part of the updated proposal announced over the weekend specifically states, "In any case in which there is a shortfall, the President shall submit a legislative proposal that recoups from the financial industry an amount equal to the shortfall ..." Even Warren Buffett weighed in on this topic, saying, "If the government makes anything over its cost of borrowing, this deal will come out with a profit. And I would bet it will come out with a profit, actually."
Half-truth: This is a bailout of Wall StreetThis is not a bailout of Wall Street: It's a bailout of the American financial system from a problem caused by Wall Street (as well as Main Street). There's a tremendous difference between the two.
First, ask the shareholders of AIG, Freddie Mac, or Fannie Mae (all three of which have undergone 95% declines in the past year) if they feel they've been bailed out. The common shareholders of these companies (and other companies like them that took on extreme risk) have been taken to the cleaners. Whether you think they should have been, or not, is your decision.
The portion that does get bailed out is the financial system that all Americans rely on whether they know it or not. From grocery stores that rely on lines of credit to stock their shelves to small businesses that rely on credit to make payroll every month, there truly isn't an inch of the economy that wouldn't get sucked down the tubes in one way or another if the financial system were allowed to collapse.
Inconsistency: The economy won't implode if a big bank goes underAfter all, we hear that "Lehman Brothers was allowed to go bankrupt and the world didn't come to an end." I can see why this is a widely held belief, but let's dig a little further into the events of two weeks ago. Lehman Brothers went belly-up sometime Sunday afternoon. By Sunday evening, Merrill Lynch had to be hastily thrown into Bank of America's arms. By Tuesday, AIG had imploded. By Thursday, Goldman Sachs and Morgan Stanley were on the brink of collapse.
I'll go out on a limb and assume that four once-in-a-lifetime events happening within 96 hours of each other wasn't a coincidence. The only thing that stopped the domino-style financial meltdown was word that the mother of all bailouts was taking shape. Like it or not, many of these companies truly are too big to fail.
Inconsistency: Let 'em fail; the sooner they die, the sooner we recoverI disagree. Tough medicine makes sense if the medicine isn't so tough that it kills you. The big factor that needs to be addressed here is that foreigners own more than one-quarter of all the public debt in America, which in effect gives them the ability to send the financial system into Armageddon if they sense that our financial fortitude teeters on collapse.
Any large-scale fallout in the financial sector could give foreigners a good reason to start dumping treasuries in mass, causing a bank run on the largest debtor in the world: the U.S. government. There is no doubt that such a run would push the value of the dollar to unimaginable lows, as well as cause a domestic credit crisis to boil into a currency meltdown. Such a meltdown would make any recovery several orders of magnitude more difficult than it would be with the bailout.
In all fairness, issuing $700 billion will have a seriously negative affect on the value of the dollar as well, but it pales in comparison to the amount of carnage foreign investors could bring if they gave up on us. Relying on the kindness of strangers is a tough spot to be in.
To find out more information on the housing market.. please call or email us. We would love to help keep you informed.
REVISED POINTS
Raising the limit on federal insurance for bank deposits from $100,000 to $250,000.
The bill also extends several tax breaks popular with businesses.
It would keep the alternative minimum tax from hitting 20 million middle-income Americans.
Provide $8 billion in tax relief for those hit by natural disasters in the Midwest, Texas and Louisiana.
I am including a 2 page info sheet on the Myths, Half-truths and Inconsistencies within the plan provided by Mike Fink of Countrywide Home Loans.
The Bailout: Myths, Half-Truths, and Inconsistencies
The mother of all bailouts is quickly turning into not just one of the largest financial events in history, but a heated political argument as well. Many questions still remain unanswered about how this plan is structured and whether it should be implemented at all.
You're going to get a different opinion from everyone you ask, but here are a few thoughts on four of the chief areas of debate getting tossed around.
Myth: The proposed bailout will cost taxpayers at least $700 billionThe $700 billion isn't a donation, a grant, or a gift -- it's an investment. The money will be used to purchase assets from banks at a steep discount, and then sold down the road once the smoke clears. The proceeds from those sales will go back to the Treasury and pay off the debt issued for the bailout. It's completely reasonable to assume taxpayers could in fact profit from this venture in years to come if done properly. In fact, part of the updated proposal announced over the weekend specifically states, "In any case in which there is a shortfall, the President shall submit a legislative proposal that recoups from the financial industry an amount equal to the shortfall ..." Even Warren Buffett weighed in on this topic, saying, "If the government makes anything over its cost of borrowing, this deal will come out with a profit. And I would bet it will come out with a profit, actually."
Half-truth: This is a bailout of Wall StreetThis is not a bailout of Wall Street: It's a bailout of the American financial system from a problem caused by Wall Street (as well as Main Street). There's a tremendous difference between the two.
First, ask the shareholders of AIG, Freddie Mac, or Fannie Mae (all three of which have undergone 95% declines in the past year) if they feel they've been bailed out. The common shareholders of these companies (and other companies like them that took on extreme risk) have been taken to the cleaners. Whether you think they should have been, or not, is your decision.
The portion that does get bailed out is the financial system that all Americans rely on whether they know it or not. From grocery stores that rely on lines of credit to stock their shelves to small businesses that rely on credit to make payroll every month, there truly isn't an inch of the economy that wouldn't get sucked down the tubes in one way or another if the financial system were allowed to collapse.
Inconsistency: The economy won't implode if a big bank goes underAfter all, we hear that "Lehman Brothers was allowed to go bankrupt and the world didn't come to an end." I can see why this is a widely held belief, but let's dig a little further into the events of two weeks ago. Lehman Brothers went belly-up sometime Sunday afternoon. By Sunday evening, Merrill Lynch had to be hastily thrown into Bank of America's arms. By Tuesday, AIG had imploded. By Thursday, Goldman Sachs and Morgan Stanley were on the brink of collapse.
I'll go out on a limb and assume that four once-in-a-lifetime events happening within 96 hours of each other wasn't a coincidence. The only thing that stopped the domino-style financial meltdown was word that the mother of all bailouts was taking shape. Like it or not, many of these companies truly are too big to fail.
Inconsistency: Let 'em fail; the sooner they die, the sooner we recoverI disagree. Tough medicine makes sense if the medicine isn't so tough that it kills you. The big factor that needs to be addressed here is that foreigners own more than one-quarter of all the public debt in America, which in effect gives them the ability to send the financial system into Armageddon if they sense that our financial fortitude teeters on collapse.
Any large-scale fallout in the financial sector could give foreigners a good reason to start dumping treasuries in mass, causing a bank run on the largest debtor in the world: the U.S. government. There is no doubt that such a run would push the value of the dollar to unimaginable lows, as well as cause a domestic credit crisis to boil into a currency meltdown. Such a meltdown would make any recovery several orders of magnitude more difficult than it would be with the bailout.
In all fairness, issuing $700 billion will have a seriously negative affect on the value of the dollar as well, but it pales in comparison to the amount of carnage foreign investors could bring if they gave up on us. Relying on the kindness of strangers is a tough spot to be in.
To find out more information on the housing market.. please call or email us. We would love to help keep you informed.
Info on the Job Market
Jobless report: The credit crisis is creating even more worry about the labor market outlook, and there was little consolation in the jobs report today. All signs are pointing to further deterioration in the months ahead. The big question is how bad it will get and how quickly. Friday's report on September employment illustrated that. Non-farm payrolls fell 159,000, much more than the consensus forecast of 105,000. That follows a 73,000-decline in August. The unemployment rate remained at 6.1 percent, a five-year high. On Thursday, the government reported that weekly jobless claims rose to a seven-year high of 497,000, while the four-week moving average rose to 474,000. Continuing claims rose to a five-year high. (market report courtesy of Mike Fink- Countrywide Home Loans.)
Monday, September 29, 2008
Mortgage Rates Rose Last Week
30 year mortgage rates rose last week to 5.78%. The rates are still lower than last year at this time when they averaged 6.42%, and still lower than this years peak of 6.63% in July. The 3rd quarter housing market still shows some softness in sales price and activity according to Frank Nothaft Freddie Mac VP.
Tuesday, September 16, 2008
Queen Creek, Is it the Right Move?
Thinking of moving to Queen Creek, AZ? It is surrounded by the beautiful San Tan Mountains with the 10,000 + acre San Tan Regional Park nearby with hiking, biking and horseback riding trails. There are a number of opportunities to buy homes at a great price, interest rates are still low and banks are begging for well qualified buyers. There are great deals offered by the builders or you can pick up a foreclosure at an overly reasonable price and expect great returns in 3-5 years. Nearby Shopping at the Queen Creek Marketplace now includes stores like Kohl's, Super Target , Ross, Tilly's and Steinmart among many others. Queen Creek is building a new beautifully mastered library and more dining is coming to the area. The area unemployment rate is low and job opportunities are all around. If you want to learn more about this area or the abundance of great homes available... please contact Dani at 480-695-2010.
Saturday, September 13, 2008
ASU Realty Studies
In August Foreclosures increased to 44% of the 7505 recorded transactions according to a report released by Realty Studies, a division of the Morrison School of Management and Agribusiness at ASU.
"Foreclosure activity differs throughout the Valley." said Jay Butler, director of Realty Studies at ASU in a written statement.
The median sales price of all homes in valley was $193, 550 compared to $161,875 for forclosures. With Scottsdale reporting a median of $560,000 and Maryvale at just under $130,000.
There are hopes that the mortgage takeovers by the federal government will bring confidence and stability back to the housing market.
For more info visit www.asu.edu
"Foreclosure activity differs throughout the Valley." said Jay Butler, director of Realty Studies at ASU in a written statement.
The median sales price of all homes in valley was $193, 550 compared to $161,875 for forclosures. With Scottsdale reporting a median of $560,000 and Maryvale at just under $130,000.
There are hopes that the mortgage takeovers by the federal government will bring confidence and stability back to the housing market.
For more info visit www.asu.edu
Wednesday, September 10, 2008
DECREASE In Interest Rates? Is it GOOD? 5.75%
With the take over of Fannie Mae and Freddie Mac last week, we are seeing a drop in interest rates.
Interest rates have tumbled down, having homeowner and potential buyers flooding loan offices with their phone calls. However, with this lowered interest rate came a higher down payment requirement set by many of the mortgage companies, making it harder for some people to qualify for loans.
Rates dropped from 6.5%, which they have remained steady at over the summer, to 6% this week.
Lenders scared by the falling home prices and increase in foreclosures have hightened their standards for those applying for new mortagages.
On Wednesday, the typical person with solid credit borrowing $729,750 or less could get a fixed rate of 5.75% if they paid 1% upfront fee.
Unfortunately, these new lowered interest rates do not apply to those of you loaning over the $729,750. Rates for these loans are in the ballpark of 8.125% with a 3.5% of purchase price upfront fee.
Please let me know if you have questions regarding this new loan strategy. I would be happy to put you in touch with a loan consultant who can answer your questions regarding a new mortgage or refinance.
Dani Miller
480-695-2010
home4you@hotmail.com
Interest rates have tumbled down, having homeowner and potential buyers flooding loan offices with their phone calls. However, with this lowered interest rate came a higher down payment requirement set by many of the mortgage companies, making it harder for some people to qualify for loans.
Rates dropped from 6.5%, which they have remained steady at over the summer, to 6% this week.
Lenders scared by the falling home prices and increase in foreclosures have hightened their standards for those applying for new mortagages.
On Wednesday, the typical person with solid credit borrowing $729,750 or less could get a fixed rate of 5.75% if they paid 1% upfront fee.
Unfortunately, these new lowered interest rates do not apply to those of you loaning over the $729,750. Rates for these loans are in the ballpark of 8.125% with a 3.5% of purchase price upfront fee.
Please let me know if you have questions regarding this new loan strategy. I would be happy to put you in touch with a loan consultant who can answer your questions regarding a new mortgage or refinance.
Dani Miller
480-695-2010
home4you@hotmail.com
Monday, September 8, 2008
FANNIE AND FREDDIE TAKE OVER!
FANNIE & FREDDIE
Treasury Secretary Henry Paulson announced that the federal government had taken over Freddie Mac and Fannie Mae. The long term effects of the overall housing market are up in the air, but here is what is known regarding this plan so far. There may be some positive effects to interest rates from this take over.
FANNIE & FREDDIE TAKE OVER
The two mortgage giants are now operating in a government conservatorship that will be administered by the new Federal Housing Finance Agency (created under the same Congressional authority that authorized the Treasury Department to shore up Freddie and Fannie. James Lockhart, former director of the Office of Federal Housing Enterprise Oversight which had responsibility for the two government sponsored entities (GSEs) is the new director of the Finance Agency.
The Conservator will control and direct the operation of the Company and will have all the powers formerly held by the shareholders, directors, and the officers of the Company and conduct all business, collect all money due to the company, preserve the assets and property of the company, and contract for any assistance necessary.
In return for providing funds to guarantee their debt the Treasury Department will immediately receive $2 billion in preferred stock that will pay a 10 percent dividend. $1 billion of the stock will come from each of the two companies and the Conservatorship will purchase additional stock, perhaps as much as $100 billion worth, if the GSE's capital reserves fall below an agreed upon level. This preferred stock will take president over any claims by holders of common or the existing preferred stock.
According to Secretary Paulson, the GSEs will modestly increase their mortgage backed securities portfolios through the end of next year "through prudent mortgage purchases" and will then reduce those holdings by 10 percent per year after 2009. The portfolios shall not exceed $850 billion for each company. An Associated Press article quoted Mark Zandi, chief economist for Moody's Economy.com, as saying this will effectively make the federal government the nation's mortgage lender.
It appears that Treasury is primarily interested in protecting holders of GSE debt. This class of creditors includes many large investment companies and a number of foreign governments.
The Treasury Department is establishing a new secured lending credit facility which will be available to the two GSEs and to Federal Home Loan banks.
Both CEOs - Fannie's Daniel Mudd and Freddie's Richard Syron - have lost their executive positions and mammoth salaries although it appears that each has agreed to stay on to assist in an orderly transition.
The conservatorship is open-ended in terms of time. The conservator alone will make the determination that the companies have returned to a safe and solvent condition.
MORTGAGE RATES HEADING LOWER? While it is yet to be determined the full extent that this take over will have on the housing market. This latest move from the government should help borrowers looking to refinance or purchase a home, as interest rates on conventional loans will decrease.
The final numbers of how much this will affect interest rates is up in the air, but the average rate on a 30 year fixed loan will decrease from the national average of almost 6.5%, where rates stood when this action was taken.The government bailout is aimed at making mortgages easier to obtain and afford.
By shoring up the mortgage financing giants, they can continue buying mortgages from lenders and injecting much-needed cash into the system.
"Fannie Mae and Freddie Mac are crucial to turning the corner on housing," said Treasury Henry Paulson. "Therefore, the primary mission of these enterprises now will be to proactively work to increase the availability of mortgage finance. Our economy and our markets will not recover until the bulk of this housing correction is behind us."
However, the news is not all good. As foreclosures and delinquencies are at all-time highs, Fannie and Freddie are expected to maintain - if not ratchet up - tighter lending standards. And the fees they have introduced for borrowers with weaker credit histories won't go away anytime soon.
When looking at mortgage rates that borrowers pay we must realize that they are dependent on the yields that investors demand when buying mortgage-backed securities from Fannie and Freddie.
Investors' doubts about the companies' viability have sent interest rates on those securities soaring. Despite regulators' July promise that they would step in to save the mortgage companies, investors are still demanding rates of 2.25% to 2.45% above Treasuries. Historically, the spread has been 1.25%.
With the government now taking over the companies and minimizing the risk associated with their debt, investors may be willing to ease off their need for higher rates.
DON'T WAIT - THINGS COULD CHANGE AGAIN As with many recent plans unveiled by the government, there is no telling where the mortgage and housing market will move in the near future. If more negative news were to come to pass then the drop in interest rates could be a short term event. Therefore, if you were waiting for lower interest rates, now is the time to act. As these lower interest rates could potentially only be a short term reality.
Information obtained courtesy of Bill Kamboukos and Carlos Felix of Strategic Mortgage
Treasury Secretary Henry Paulson announced that the federal government had taken over Freddie Mac and Fannie Mae. The long term effects of the overall housing market are up in the air, but here is what is known regarding this plan so far. There may be some positive effects to interest rates from this take over.
FANNIE & FREDDIE TAKE OVER
The two mortgage giants are now operating in a government conservatorship that will be administered by the new Federal Housing Finance Agency (created under the same Congressional authority that authorized the Treasury Department to shore up Freddie and Fannie. James Lockhart, former director of the Office of Federal Housing Enterprise Oversight which had responsibility for the two government sponsored entities (GSEs) is the new director of the Finance Agency.
The Conservator will control and direct the operation of the Company and will have all the powers formerly held by the shareholders, directors, and the officers of the Company and conduct all business, collect all money due to the company, preserve the assets and property of the company, and contract for any assistance necessary.
In return for providing funds to guarantee their debt the Treasury Department will immediately receive $2 billion in preferred stock that will pay a 10 percent dividend. $1 billion of the stock will come from each of the two companies and the Conservatorship will purchase additional stock, perhaps as much as $100 billion worth, if the GSE's capital reserves fall below an agreed upon level. This preferred stock will take president over any claims by holders of common or the existing preferred stock.
According to Secretary Paulson, the GSEs will modestly increase their mortgage backed securities portfolios through the end of next year "through prudent mortgage purchases" and will then reduce those holdings by 10 percent per year after 2009. The portfolios shall not exceed $850 billion for each company. An Associated Press article quoted Mark Zandi, chief economist for Moody's Economy.com, as saying this will effectively make the federal government the nation's mortgage lender.
It appears that Treasury is primarily interested in protecting holders of GSE debt. This class of creditors includes many large investment companies and a number of foreign governments.
The Treasury Department is establishing a new secured lending credit facility which will be available to the two GSEs and to Federal Home Loan banks.
Both CEOs - Fannie's Daniel Mudd and Freddie's Richard Syron - have lost their executive positions and mammoth salaries although it appears that each has agreed to stay on to assist in an orderly transition.
The conservatorship is open-ended in terms of time. The conservator alone will make the determination that the companies have returned to a safe and solvent condition.
MORTGAGE RATES HEADING LOWER? While it is yet to be determined the full extent that this take over will have on the housing market. This latest move from the government should help borrowers looking to refinance or purchase a home, as interest rates on conventional loans will decrease.
The final numbers of how much this will affect interest rates is up in the air, but the average rate on a 30 year fixed loan will decrease from the national average of almost 6.5%, where rates stood when this action was taken.The government bailout is aimed at making mortgages easier to obtain and afford.
By shoring up the mortgage financing giants, they can continue buying mortgages from lenders and injecting much-needed cash into the system.
"Fannie Mae and Freddie Mac are crucial to turning the corner on housing," said Treasury Henry Paulson. "Therefore, the primary mission of these enterprises now will be to proactively work to increase the availability of mortgage finance. Our economy and our markets will not recover until the bulk of this housing correction is behind us."
However, the news is not all good. As foreclosures and delinquencies are at all-time highs, Fannie and Freddie are expected to maintain - if not ratchet up - tighter lending standards. And the fees they have introduced for borrowers with weaker credit histories won't go away anytime soon.
When looking at mortgage rates that borrowers pay we must realize that they are dependent on the yields that investors demand when buying mortgage-backed securities from Fannie and Freddie.
Investors' doubts about the companies' viability have sent interest rates on those securities soaring. Despite regulators' July promise that they would step in to save the mortgage companies, investors are still demanding rates of 2.25% to 2.45% above Treasuries. Historically, the spread has been 1.25%.
With the government now taking over the companies and minimizing the risk associated with their debt, investors may be willing to ease off their need for higher rates.
DON'T WAIT - THINGS COULD CHANGE AGAIN As with many recent plans unveiled by the government, there is no telling where the mortgage and housing market will move in the near future. If more negative news were to come to pass then the drop in interest rates could be a short term event. Therefore, if you were waiting for lower interest rates, now is the time to act. As these lower interest rates could potentially only be a short term reality.
Information obtained courtesy of Bill Kamboukos and Carlos Felix of Strategic Mortgage
Saturday, September 6, 2008
Canadians Buying Up the Valley?
According to many articles out there, Canadians are still in a frenzy to purchase American Homes. The Valley homes are in a perfect location, the weather is great and many seek to own property where there is great weather, golf and plenty of other desirable activities.
Since Valley Homes are in such a high supply, it may take sellers a little extra effort to attract buyers attention.
Here are some tips:
List your home with an agent who does advertising to Canadian Buyers.
Throw in furniture and kitchen supplies, many Canadian buyers are looking for second homes or rental properties and including these things could be a bonus, so they don't have to go out and rebuy everything.
Formal Spaces are a plus. Play up areas in your photos including formal living and dining rooms.
Light is encouraging! Canada is often dark in the winter... make sure you pull back your curtains or blinds and let natural light shine through.
Offer seller financing. Many Canadians look to American financing to purchase a home, but the do not always find they will get the best deal, often large down payments are required, appeal to the buyer that would buy, if they didn't have to put so much down. Lease purchases are coming back into play in this market.
Have your agent be on the lookout for large investment companies who are seeking to buy up inexpensive housing in quantities to turn around and rent to winter visitors!
Call, email or respond with any questions!
Since Valley Homes are in such a high supply, it may take sellers a little extra effort to attract buyers attention.
Here are some tips:
List your home with an agent who does advertising to Canadian Buyers.
Throw in furniture and kitchen supplies, many Canadian buyers are looking for second homes or rental properties and including these things could be a bonus, so they don't have to go out and rebuy everything.
Formal Spaces are a plus. Play up areas in your photos including formal living and dining rooms.
Light is encouraging! Canada is often dark in the winter... make sure you pull back your curtains or blinds and let natural light shine through.
Offer seller financing. Many Canadians look to American financing to purchase a home, but the do not always find they will get the best deal, often large down payments are required, appeal to the buyer that would buy, if they didn't have to put so much down. Lease purchases are coming back into play in this market.
Have your agent be on the lookout for large investment companies who are seeking to buy up inexpensive housing in quantities to turn around and rent to winter visitors!
Call, email or respond with any questions!
Thursday, September 4, 2008
How to Buy a Great Home.. The Easy Way!
How to Avoid the 10 Most Common Mistakes.
Buying a home can be an overwhelming experience. You may encounter a roller coaster of emotions while searching for the right house to call home. For most of us, a home purchase is the biggest investment we will ever make. The emotions associated with purchasing a home can often cloud your judgment. Don’t worry! It will all work out.
Most people who purchase a home do not do much research before their purchase if they do any research at all. Doesn’t it make sense to make your choice after first being informed? But where do you get all the information you need? Don’t worry this little guide will help you avoid making the 10 most common and crucial mistakes.
Inspect, Inspect, Inspect- Although a home inspection is optional and typically paid for by the buyer, this money could be the most important $200-350 you will ever spend! Order a home inspection by a professional. Go over the report thoroughly. Review the restrictions (CC&R’s), By-Laws, and Association Fees with your agent. Be comfortable that you can live with any rules and regulations placed on the property.
Imagine the Property Vacant-Your furnishings will be the ones filling this new home. Don’t let current beautiful features, furniture or disliked features or furniture sway your decision to buy the home or not, they will leave with the owner.
Income + Lifestyle=Mortgage Payment- Sit down with your lender and real estate agent and honestly discuss your income level and living expenses. Take into account future considerations, children, add-ons, amenities, and fix ups.
View Several Homes- See at least 5-10 properties with your agent. Don’t move too slowly but don’t move on the first property you see. With your agent’s help you should be able to view enough properties to get a good overall perspective of the market. When you find the right home for you all the legwork will be worth it.
Utilize Your Team- By aligning yourself with the right real estate professional you will have an entire team at your disposal. Utilize your lender, title rep and agent. They are all working hand in hand for your benefit. Explore all your options.
Be Colombo- Check out all the costs and expenses before your 10 day inspection period is up. Utilities, taxes, insurance, maintenance and homeowner association dues if applicable. A good agent will make sure all the utilities (gas, electricity, and water) are on during your walk-through so you can inspect everything in working order. ASK LOTS OF QUESTIONS.
Do a Final Walk Through-Visit the property before closing to make sure there are no surprises. Be sure the property was in the same condition as when you wrote the contract on it.
Plan for Flexibility- Closing dates are not written in stone. Allow for flexibility and have a backup plan. If you or the sellers need a little more time to conclude the final arrangements, don’t let these delays upset or frustrate you. These types of circumstances are not uncommon in a real estate transaction.
If It’s Not In Writings, It Doesn’t Exist- All promises and discussions must be in writing! Don’t make any assumptions or believe any assurances. Even the best intentions can be misinterpreted. A good agent will keep an ongoing log in writing of all discussions and get the seller’s written approval on all agreements.
Loyalty Breeds Loyalty-Be open, honest and up front with your team. Hard feelings and disloyalty will cause headaches, delays or may even keep you from getting into the home you worked so hard to find. Take the time to select the right team in the beginning and your home p0urchase will be pleasing and memorable experience.
Our team looks forward to helping you find the right house to call HOME!
Buying a home can be an overwhelming experience. You may encounter a roller coaster of emotions while searching for the right house to call home. For most of us, a home purchase is the biggest investment we will ever make. The emotions associated with purchasing a home can often cloud your judgment. Don’t worry! It will all work out.
Most people who purchase a home do not do much research before their purchase if they do any research at all. Doesn’t it make sense to make your choice after first being informed? But where do you get all the information you need? Don’t worry this little guide will help you avoid making the 10 most common and crucial mistakes.
Inspect, Inspect, Inspect- Although a home inspection is optional and typically paid for by the buyer, this money could be the most important $200-350 you will ever spend! Order a home inspection by a professional. Go over the report thoroughly. Review the restrictions (CC&R’s), By-Laws, and Association Fees with your agent. Be comfortable that you can live with any rules and regulations placed on the property.
Imagine the Property Vacant-Your furnishings will be the ones filling this new home. Don’t let current beautiful features, furniture or disliked features or furniture sway your decision to buy the home or not, they will leave with the owner.
Income + Lifestyle=Mortgage Payment- Sit down with your lender and real estate agent and honestly discuss your income level and living expenses. Take into account future considerations, children, add-ons, amenities, and fix ups.
View Several Homes- See at least 5-10 properties with your agent. Don’t move too slowly but don’t move on the first property you see. With your agent’s help you should be able to view enough properties to get a good overall perspective of the market. When you find the right home for you all the legwork will be worth it.
Utilize Your Team- By aligning yourself with the right real estate professional you will have an entire team at your disposal. Utilize your lender, title rep and agent. They are all working hand in hand for your benefit. Explore all your options.
Be Colombo- Check out all the costs and expenses before your 10 day inspection period is up. Utilities, taxes, insurance, maintenance and homeowner association dues if applicable. A good agent will make sure all the utilities (gas, electricity, and water) are on during your walk-through so you can inspect everything in working order. ASK LOTS OF QUESTIONS.
Do a Final Walk Through-Visit the property before closing to make sure there are no surprises. Be sure the property was in the same condition as when you wrote the contract on it.
Plan for Flexibility- Closing dates are not written in stone. Allow for flexibility and have a backup plan. If you or the sellers need a little more time to conclude the final arrangements, don’t let these delays upset or frustrate you. These types of circumstances are not uncommon in a real estate transaction.
If It’s Not In Writings, It Doesn’t Exist- All promises and discussions must be in writing! Don’t make any assumptions or believe any assurances. Even the best intentions can be misinterpreted. A good agent will keep an ongoing log in writing of all discussions and get the seller’s written approval on all agreements.
Loyalty Breeds Loyalty-Be open, honest and up front with your team. Hard feelings and disloyalty will cause headaches, delays or may even keep you from getting into the home you worked so hard to find. Take the time to select the right team in the beginning and your home p0urchase will be pleasing and memorable experience.
Our team looks forward to helping you find the right house to call HOME!
Tuesday, September 2, 2008
HOPE NOW
Troubled homes are now getting more help from HOPE NOW, an organization aimed as a homeowner aid program. Hope Now said that 192,000 boworrows were helped out of their current troubled home loan through mortgages being adjusted or using repayment programs. Hope Now chief Faith Schwartz said that the pace of prevention for foreclosures is likely to accelerate in upcoming months.
For more information regarding this homeowner aid program please call
1-888-995-4673
For more information regarding this homeowner aid program please call
1-888-995-4673
Thursday, August 14, 2008
Down Payment Assistance- Short Time Remaining
Ameridream; Nehemiah Programs
These program have been around a long time helping people who do not have the liquid cash to be able to purchase home. Many think that they are a great way for these home buyers to afford the AMERICAN DREAM.. of owning your own home.
Unfortunately, statistically from January 1 of this year until July 1 60% of the people that this program got into a home using these and other downpayment assistance programs did not even make their first months payment... yes, that means they were in default of the loan they obtained within the first month... this is an amazing statistic and unbelievable. That is why the government is doing away with these types of programs. These programs are planned to go away as of Oct 1, however, paperwork and contracts must be submitted by September 15th in most cases and close by September 30th to qualify.
Don't worry the RUMOR is there will be new Bond Programs with money available to help those who qualify for such programs and I will keep you posted as to when those programs are available and what they offer. If you would like to be on my update list please email me your information and I will include you in any updates I receive about the Bond Programs. They should be available in both Maricopa and Pinal County.
email me at home4you@hotmail.com
Dani
These program have been around a long time helping people who do not have the liquid cash to be able to purchase home. Many think that they are a great way for these home buyers to afford the AMERICAN DREAM.. of owning your own home.
Unfortunately, statistically from January 1 of this year until July 1 60% of the people that this program got into a home using these and other downpayment assistance programs did not even make their first months payment... yes, that means they were in default of the loan they obtained within the first month... this is an amazing statistic and unbelievable. That is why the government is doing away with these types of programs. These programs are planned to go away as of Oct 1, however, paperwork and contracts must be submitted by September 15th in most cases and close by September 30th to qualify.
Don't worry the RUMOR is there will be new Bond Programs with money available to help those who qualify for such programs and I will keep you posted as to when those programs are available and what they offer. If you would like to be on my update list please email me your information and I will include you in any updates I receive about the Bond Programs. They should be available in both Maricopa and Pinal County.
email me at home4you@hotmail.com
Dani
Tuesday, August 12, 2008
Sleep on It!
Have you seen HGTV's Sleep on It?
Well, what a concept. I have recently had a discussion with one of my clients whose house is for sale and she thought that if she could not sell her home in a timely matter we could consider such an aspect. Just think.. Try it before you buy it! This is a great opportunity to allow potential buyers try your home before they buy it. Of course you are probably thinking what the risks are involved, but we would definitely start with a game plan and make sure we only allowed well qualified interested parties take part in such an endeavor. There would be a rental agreement (even if only a day) and money deposited into escrow for potential damage involved. This could truly become part of the buyers 10 day inspection period. It would be great for those whose homes back a major street, a freeway, side a park or commercial space... many people are afraid of noise and just don't want to take the risk, but if they could live there for a day or two, eat there, shower there and leave for work to be able to test their commute? Wouldn't they be more apt to buy or know it, especially if they really love the house, there is just one little thing holding them back.
For a sneak preview of the show visit: http://www.hgtv.com/hgtv/shows_hslep
How would you like to try a home before you buy it? It could become the new thing.
For more information as to how we can market your home for sale using this concept or other ways to think outside the box when selling your home, give me a call at 480-695-2010.
Well, what a concept. I have recently had a discussion with one of my clients whose house is for sale and she thought that if she could not sell her home in a timely matter we could consider such an aspect. Just think.. Try it before you buy it! This is a great opportunity to allow potential buyers try your home before they buy it. Of course you are probably thinking what the risks are involved, but we would definitely start with a game plan and make sure we only allowed well qualified interested parties take part in such an endeavor. There would be a rental agreement (even if only a day) and money deposited into escrow for potential damage involved. This could truly become part of the buyers 10 day inspection period. It would be great for those whose homes back a major street, a freeway, side a park or commercial space... many people are afraid of noise and just don't want to take the risk, but if they could live there for a day or two, eat there, shower there and leave for work to be able to test their commute? Wouldn't they be more apt to buy or know it, especially if they really love the house, there is just one little thing holding them back.
For a sneak preview of the show visit: http://www.hgtv.com/hgtv/shows_hslep
How would you like to try a home before you buy it? It could become the new thing.
For more information as to how we can market your home for sale using this concept or other ways to think outside the box when selling your home, give me a call at 480-695-2010.
Thursday, August 7, 2008
Housing Rescue
Housing-Rescue Law Q&A
Questions and answers about the Hope for Homeowners Act of 2008, signed into law by President Bush last Wednesday to try to steer as many as 400,000 struggling homeowners away from foreclosure:
Q: What exactly will the legislation do? A: It will allow those who qualify to cancel their old mortgage loans and replace them with 30-year fixed-rate loans for up to 90 percent of the home's current value. The FHA will insure a total of $300 billion of the loans over a three-year period.
But the decision on whether to write such a loan remains up to banks, which would have to be willing to take a loss on the existing loans in exchange for avoiding an often-costly foreclosure.
Q: Who is eligible? A: Eligible borrowers must have spent more than 31 percent of their monthly incomes on their mortgages as of March 1, 2008. The troubled loan must have originated no later than Jan. 1, 2008, and be on the borrower's primary residence. And the borrower's income must be verified.
Q: When does the program start? A: It takes effect Oct. 1 and runs through September 2011, although the FHA isn't likely to have it operating at full capacity until next year.
Q: Since lenders can pick and choose which loans to refinance, how can consumers determine if theirs will be selected? A: Check with the bank or financial company servicing your mortgage, but it may be weeks before they make decisions concerning the new guidelines and assess individual loans.
Even then, keep expectations limited. "Servicers are going to be reluctant to take the government up on their offer," predicted Mark Zandi, chief economist at Moody's Economy.com. "The earliest they'll start taking them up on it is early next year. And even then it's likely to be modest."
Q: Is there anything a homeowner can do to improve chances of benefiting from the program, such as crunching numbers to make a case for the bank?
A: Not really. The best step is to keep up your payments as best you can. Q: But doesn't this provide an incentive to NOT pay your mortgage, if you're barely keeping ahead of bills and are underwater on your house, so you can qualify?
A: No. If your situation deteriorates enough, the bank may reject any possible new loan. "Turning yourself into a financial basket case is not going to work," said Dan Seiver, a finance professor at San Diego State University. "If you turn into a complete deadbeat, the servicer is going to just foreclose and dump it."
Q: So what should I be doing now besides trying to keep up with payments? A: Talk to a local credit counselor and call the toll-free hot line of the Hope Now alliance — an industry group trying to coordinate a response to the mortgage crisis — at 1-888-995-HOPE. It is available 24 hours a day to provide mortgage counseling in multiple languages.
Mary Thomason, director of resource development for The Impact Group of Atlanta, a housing counseling group, also suggests tracking expenses and income closely in order to be able to forecast your cash flow for the next six months and give yourself better control of your finances.
Q: If the banks and lenders refuse to write these loans, then what? A: Public and political pressure may prompt them to participate. If not, and more people continue to lose their homes, Zandi says the next White House administration subject them to additional regulations or investigations if they remain unwilling to take on the risks.
Q: What happens if I'm able to sell my home after I refinance? A: If you sell during the next five years, you must agree to share 50 percent of any profits from the resale with the government. What's more, homeowners can only retain equity gains based on a sliding scale. The homeowner would have zero equity from a sale in the first year, with the amount rising 10 percent in each succeeding year and capping at 50 percent from a sale in year five and thereafter.
The equity must be repaid because the maximum amount on the new loans will be capped at 90 percent of the current market value, which automatically gives the previously troubled homeowner 10 percent equity in the home.
Q: Where can consumers find more detailed information about the plan? A: Click here for a six-page summary of the housing act, and the FHA's Web site is a place to watch for updated information. Click here for the entire 694-page bill.
Questions and answers about the Hope for Homeowners Act of 2008, signed into law by President Bush last Wednesday to try to steer as many as 400,000 struggling homeowners away from foreclosure:
Q: What exactly will the legislation do? A: It will allow those who qualify to cancel their old mortgage loans and replace them with 30-year fixed-rate loans for up to 90 percent of the home's current value. The FHA will insure a total of $300 billion of the loans over a three-year period.
But the decision on whether to write such a loan remains up to banks, which would have to be willing to take a loss on the existing loans in exchange for avoiding an often-costly foreclosure.
Q: Who is eligible? A: Eligible borrowers must have spent more than 31 percent of their monthly incomes on their mortgages as of March 1, 2008. The troubled loan must have originated no later than Jan. 1, 2008, and be on the borrower's primary residence. And the borrower's income must be verified.
Q: When does the program start? A: It takes effect Oct. 1 and runs through September 2011, although the FHA isn't likely to have it operating at full capacity until next year.
Q: Since lenders can pick and choose which loans to refinance, how can consumers determine if theirs will be selected? A: Check with the bank or financial company servicing your mortgage, but it may be weeks before they make decisions concerning the new guidelines and assess individual loans.
Even then, keep expectations limited. "Servicers are going to be reluctant to take the government up on their offer," predicted Mark Zandi, chief economist at Moody's Economy.com. "The earliest they'll start taking them up on it is early next year. And even then it's likely to be modest."
Q: Is there anything a homeowner can do to improve chances of benefiting from the program, such as crunching numbers to make a case for the bank?
A: Not really. The best step is to keep up your payments as best you can. Q: But doesn't this provide an incentive to NOT pay your mortgage, if you're barely keeping ahead of bills and are underwater on your house, so you can qualify?
A: No. If your situation deteriorates enough, the bank may reject any possible new loan. "Turning yourself into a financial basket case is not going to work," said Dan Seiver, a finance professor at San Diego State University. "If you turn into a complete deadbeat, the servicer is going to just foreclose and dump it."
Q: So what should I be doing now besides trying to keep up with payments? A: Talk to a local credit counselor and call the toll-free hot line of the Hope Now alliance — an industry group trying to coordinate a response to the mortgage crisis — at 1-888-995-HOPE. It is available 24 hours a day to provide mortgage counseling in multiple languages.
Mary Thomason, director of resource development for The Impact Group of Atlanta, a housing counseling group, also suggests tracking expenses and income closely in order to be able to forecast your cash flow for the next six months and give yourself better control of your finances.
Q: If the banks and lenders refuse to write these loans, then what? A: Public and political pressure may prompt them to participate. If not, and more people continue to lose their homes, Zandi says the next White House administration subject them to additional regulations or investigations if they remain unwilling to take on the risks.
Q: What happens if I'm able to sell my home after I refinance? A: If you sell during the next five years, you must agree to share 50 percent of any profits from the resale with the government. What's more, homeowners can only retain equity gains based on a sliding scale. The homeowner would have zero equity from a sale in the first year, with the amount rising 10 percent in each succeeding year and capping at 50 percent from a sale in year five and thereafter.
The equity must be repaid because the maximum amount on the new loans will be capped at 90 percent of the current market value, which automatically gives the previously troubled homeowner 10 percent equity in the home.
Q: Where can consumers find more detailed information about the plan? A: Click here for a six-page summary of the housing act, and the FHA's Web site is a place to watch for updated information. Click here for the entire 694-page bill.
Time To Make Your Move
This is a fantastic opportunity for those of you who are on the fence about purchasing at this time. A colleague of mine wrote this great article of information about obtaining a loan as a first time home buyer. - Dani
Fed Stands Still – Time to Make Your Move
The Federal Reserve held the line on Tuesday–leaving the Fed Funds Rate at 2.00% for the third straight meeting. The decision, however, was anything but cut-and-dry.
Earlier in the week, the Personal Consumption Expenditure data indicated that inflation climbed 0.8% overall in June, which is the highest inflation jump in 27 years. In addition, the report indicated that inflation now sits at 2.3%–above the Fed's desired range of 1-2%.
Although the Fed ultimately left interest rates unchanged, inflation obviously remains a concern and the recent rise may lead to an interest rate hike by the Fed in the near future.
What Does This Mean to You? Many experts believe the housing market is nearing the bottom and may even be set to bounce back up. For now, home prices remain low, personal incomes are high, and interest rates are still very attractive.
If you've been weighing your options and waiting to see how things shake out, this is the ideal time to act–especially when you consider the new Housing and Economic Recovery Act benefits for home buyers:
Tax credits. First-time home buyers who purchase their primary residence between April 9, 2008 and July 1, 2009 are eligible for up to $7,500 in tax credit, as long as they haven't owned a home in the last three years. The credit is actually a generous interest-free loan, so we'll have to talk about some income parameters and payback terms. But if you're a new home buyer – or know someone who is renting or in the market to buy – this is a huge benefit that we should discuss.
Lower rates for larger loans. In the past, mortgages of $417,000 or more have been considered "jumbo" loans that were more expensive to finance. Thanks to recent provisions, however, those jumbo loans were able to qualify for better financing rates in some parts of the country. Although those provisions were set to expire, they are being extended–with a minor change to the maximum amount eligible. This is great news that may save you a ton of cash, so call me to find out how this impacts our area, and if it could help you.
Down Payment Assistance...going, going, not gone yet. Another provision of the legislation eliminates some down payment assistance programs later this year...but they are still available right now, and depending on your circumstances, we may be able to take advantage of them to double your benefit as a home buyer.
Bottom line...now may be the ideal time to put together a purchase strategy based on your unique situation.
Call today to discuss your situation and set up a time to talk
Michael S. Yamamoto
President
Phone: 602-490-0205
Mobile: 602-402-9999
Fax: 800-630-1396
yamo@homerunfinancial.net
www.homerunfinancial.biz
Fed Stands Still – Time to Make Your Move
The Federal Reserve held the line on Tuesday–leaving the Fed Funds Rate at 2.00% for the third straight meeting. The decision, however, was anything but cut-and-dry.
Earlier in the week, the Personal Consumption Expenditure data indicated that inflation climbed 0.8% overall in June, which is the highest inflation jump in 27 years. In addition, the report indicated that inflation now sits at 2.3%–above the Fed's desired range of 1-2%.
Although the Fed ultimately left interest rates unchanged, inflation obviously remains a concern and the recent rise may lead to an interest rate hike by the Fed in the near future.
What Does This Mean to You? Many experts believe the housing market is nearing the bottom and may even be set to bounce back up. For now, home prices remain low, personal incomes are high, and interest rates are still very attractive.
If you've been weighing your options and waiting to see how things shake out, this is the ideal time to act–especially when you consider the new Housing and Economic Recovery Act benefits for home buyers:
Tax credits. First-time home buyers who purchase their primary residence between April 9, 2008 and July 1, 2009 are eligible for up to $7,500 in tax credit, as long as they haven't owned a home in the last three years. The credit is actually a generous interest-free loan, so we'll have to talk about some income parameters and payback terms. But if you're a new home buyer – or know someone who is renting or in the market to buy – this is a huge benefit that we should discuss.
Lower rates for larger loans. In the past, mortgages of $417,000 or more have been considered "jumbo" loans that were more expensive to finance. Thanks to recent provisions, however, those jumbo loans were able to qualify for better financing rates in some parts of the country. Although those provisions were set to expire, they are being extended–with a minor change to the maximum amount eligible. This is great news that may save you a ton of cash, so call me to find out how this impacts our area, and if it could help you.
Down Payment Assistance...going, going, not gone yet. Another provision of the legislation eliminates some down payment assistance programs later this year...but they are still available right now, and depending on your circumstances, we may be able to take advantage of them to double your benefit as a home buyer.
Bottom line...now may be the ideal time to put together a purchase strategy based on your unique situation.
Call today to discuss your situation and set up a time to talk
Michael S. Yamamoto
President
Phone: 602-490-0205
Mobile: 602-402-9999
Fax: 800-630-1396
yamo@homerunfinancial.net
www.homerunfinancial.biz
Wednesday, July 30, 2008
BUSH SIGNS HOUSING BILL
Bush Signs Sweeping Housing Bill
By DAVID M. HERSZENHORN
Published: July 31, 2008
WASHINGTON — President Bush signed into law on Wednesday a huge package of housing legislation that included broad authority for the Treasury Department to safeguard the nation’s two largest mortgage finance companies and a plan to help hundreds of thousands of troubled borrowers avoid losing their homes.
Mr. Bush signed the legislation, which Congress approved last week, shortly after 7 a.m. in the Oval Office, the deputy White House press secretary, Tony Fratto, said.
The law authorizes the Treasury to rescue the mortgage finance giants, Fannie Mae and Freddie Mac, should they verge on collapse, potentially by spending tens of billions in federal monies. Together, the companies own or guarantee nearly half of the nation’s $12 trillion in mortgages.
Partly to accommodate the rescue plan for the mortgage companies, the bill raises the national debt ceiling to $10.6 trillion, an increase of $800 billion. The bill also creates significant liabilities and risks for taxpayers, that are virtually impossible to calculate.
“We look forward to put in place new authorities to improve confidence and stability in markets, and to provide better oversight for Fannie Mae and Freddie Mac,” Mr. Fratto said. “The Federal Housing Administration will begin to implement new policies intended to keep more deserving American families in their homes.”
A half-dozen top advisers to the president, including the Treasury secretary, Henry M. Paulson Jr., who was the leading advocate of the legislation in the administration attended the signing. But it was not a particularly auspicious occasion given the precarious state of the nation’s financial system, and the pressure that Mr. Bush came under to sign a bill that contained provisions he had opposed.
Though the legislation was the product of months of intensive work by lawmakers in both parties and has been hailed as the most aggressive intervention by the government into the housing market in more than a generation, perhaps since the New Deal, no members of Congress were invited to the signing.
The enactment of the legislation comes in the same week that the administration announced that Mr. Bush would leave behind a record $482 billion deficit, which will probably grow substantially if home values continue to decline and if there are further reductions in corporate and personal income as many economists are forecasting for the rest of the year. Because of the growing deficit, Democrats said, the debt ceiling had to be lifted regardless of the housing bill.
The new housing law includes a plan aimed at helping as many as 400,000 homeowners pay off their troubled mortgages and replace them with more affordable, government-insured loans. The program is voluntary and the lenders must agree to take a sizable loss, reducing the principal of each loan, before they can be refinanced.
The law authorizes the Federal Housing Administration to insure up to the $300 billion in such loans but the Congressional Budget Office has estimated that only $68 billion of that authority is likely to be used. The original lenders will have to pay upfront fees into an insurance fund, and borrowers will pay continuing insurance premiums of 1.5 percent a year to insulate taxpayers against losses from defaults.
The budget office has estimated that 35 percent of the refinanced loans will end up in trouble again.
The authority for the Treasury Department to help Fannie Mae and Freddie Mac is limited only by the debt ceiling. The budget office has said that a $25 billion expense should appear on the federal budget for the next two fiscal years, representing its best estimate of how much the program will end up costing taxpayers.
But the budget office said there was a better than 50 percent chance that the rescue authority would not be used, and there would be no cost, while there was a 5 percent chance that one or both of the mortgage giants would lose another $100 billion or more, costing taxpayers a vast sum.
Some experts have said that the law was wrong-headed in its effort to retain the hybrid nature of the mortgage finance giants, which are private companies with publicly traded stock, but which have an explicit guarantee of help from the government — an arrangement that critics say privatizes the profits but socializes the risk and any losses.
David M. Walker, the former comptroller general of the United States and head of the Government Accountability Office who is now president of the Peter G. Peterson Foundation, said that Mr. Bush might have been unwise to sign the measure.
“Providing authority to the secretary of the Treasury to extend credit or to buy stock is one that will end up costing the taxpayers tens of billions of dollars,” Mr. Walker said in an interview earlier this week.
Mr. Walker noted that other government interventions in the private market, including a rescue of the Chrysler automobile company had provided an opportunity for taxpayers to profit. But when it comes to the mortgage giants, he said, there is no upside.
“The way this is structured,” he said. “It’s only a matter of how much the taxpayers are going to lose.”
Supporters of the legislation — including Senator Christopher J. Dodd, Democrat of Connecticut and Senator Richard C. Shelby, Republican of Alabama, the leaders of the banking committee, and Representative Barney Frank, Democrat of Massachusetts, the main author of the legislation in the House — say the law represents the best way to help stabilize the housing market, potentially putting a solid floor under declining prices.
The bill includes an array of other aid for troubled borrowers, and about $15 billion in housing-related tax breaks. It also includes nearly $4 billion grants to local governments to buy and refurbished foreclosed properties, which Mr. Bush had opposed even as he signed the measure. The White House views that provision as a giveaway to banks and other lenders who own the seized properties.
By DAVID M. HERSZENHORN
Published: July 31, 2008
WASHINGTON — President Bush signed into law on Wednesday a huge package of housing legislation that included broad authority for the Treasury Department to safeguard the nation’s two largest mortgage finance companies and a plan to help hundreds of thousands of troubled borrowers avoid losing their homes.
Mr. Bush signed the legislation, which Congress approved last week, shortly after 7 a.m. in the Oval Office, the deputy White House press secretary, Tony Fratto, said.
The law authorizes the Treasury to rescue the mortgage finance giants, Fannie Mae and Freddie Mac, should they verge on collapse, potentially by spending tens of billions in federal monies. Together, the companies own or guarantee nearly half of the nation’s $12 trillion in mortgages.
Partly to accommodate the rescue plan for the mortgage companies, the bill raises the national debt ceiling to $10.6 trillion, an increase of $800 billion. The bill also creates significant liabilities and risks for taxpayers, that are virtually impossible to calculate.
“We look forward to put in place new authorities to improve confidence and stability in markets, and to provide better oversight for Fannie Mae and Freddie Mac,” Mr. Fratto said. “The Federal Housing Administration will begin to implement new policies intended to keep more deserving American families in their homes.”
A half-dozen top advisers to the president, including the Treasury secretary, Henry M. Paulson Jr., who was the leading advocate of the legislation in the administration attended the signing. But it was not a particularly auspicious occasion given the precarious state of the nation’s financial system, and the pressure that Mr. Bush came under to sign a bill that contained provisions he had opposed.
Though the legislation was the product of months of intensive work by lawmakers in both parties and has been hailed as the most aggressive intervention by the government into the housing market in more than a generation, perhaps since the New Deal, no members of Congress were invited to the signing.
The enactment of the legislation comes in the same week that the administration announced that Mr. Bush would leave behind a record $482 billion deficit, which will probably grow substantially if home values continue to decline and if there are further reductions in corporate and personal income as many economists are forecasting for the rest of the year. Because of the growing deficit, Democrats said, the debt ceiling had to be lifted regardless of the housing bill.
The new housing law includes a plan aimed at helping as many as 400,000 homeowners pay off their troubled mortgages and replace them with more affordable, government-insured loans. The program is voluntary and the lenders must agree to take a sizable loss, reducing the principal of each loan, before they can be refinanced.
The law authorizes the Federal Housing Administration to insure up to the $300 billion in such loans but the Congressional Budget Office has estimated that only $68 billion of that authority is likely to be used. The original lenders will have to pay upfront fees into an insurance fund, and borrowers will pay continuing insurance premiums of 1.5 percent a year to insulate taxpayers against losses from defaults.
The budget office has estimated that 35 percent of the refinanced loans will end up in trouble again.
The authority for the Treasury Department to help Fannie Mae and Freddie Mac is limited only by the debt ceiling. The budget office has said that a $25 billion expense should appear on the federal budget for the next two fiscal years, representing its best estimate of how much the program will end up costing taxpayers.
But the budget office said there was a better than 50 percent chance that the rescue authority would not be used, and there would be no cost, while there was a 5 percent chance that one or both of the mortgage giants would lose another $100 billion or more, costing taxpayers a vast sum.
Some experts have said that the law was wrong-headed in its effort to retain the hybrid nature of the mortgage finance giants, which are private companies with publicly traded stock, but which have an explicit guarantee of help from the government — an arrangement that critics say privatizes the profits but socializes the risk and any losses.
David M. Walker, the former comptroller general of the United States and head of the Government Accountability Office who is now president of the Peter G. Peterson Foundation, said that Mr. Bush might have been unwise to sign the measure.
“Providing authority to the secretary of the Treasury to extend credit or to buy stock is one that will end up costing the taxpayers tens of billions of dollars,” Mr. Walker said in an interview earlier this week.
Mr. Walker noted that other government interventions in the private market, including a rescue of the Chrysler automobile company had provided an opportunity for taxpayers to profit. But when it comes to the mortgage giants, he said, there is no upside.
“The way this is structured,” he said. “It’s only a matter of how much the taxpayers are going to lose.”
Supporters of the legislation — including Senator Christopher J. Dodd, Democrat of Connecticut and Senator Richard C. Shelby, Republican of Alabama, the leaders of the banking committee, and Representative Barney Frank, Democrat of Massachusetts, the main author of the legislation in the House — say the law represents the best way to help stabilize the housing market, potentially putting a solid floor under declining prices.
The bill includes an array of other aid for troubled borrowers, and about $15 billion in housing-related tax breaks. It also includes nearly $4 billion grants to local governments to buy and refurbished foreclosed properties, which Mr. Bush had opposed even as he signed the measure. The White House views that provision as a giveaway to banks and other lenders who own the seized properties.
Housing Market Bill
Housing Bill Has Something for Nearly Everyone
There are really some good positive elements to this bill. It will encourage Buyers to move now instead of later on purchasing a home In addition Sellers will have an important additional reason not to delay in listing, or if they are listed already, getting the property priced right. The first time home buyer provision has the potential to get the entry level of the market moving again and we all know that will help re-create a move up segment of the market; a segment of the market that is currently almost non-existent.
Cut from Friday's New York Times Article.
By RON LIEBER
Published: July 25, 2008
If you are ignoring the housing bailout bill because you think it benefits only troubled homeowners, you may miss out on a windfall.
The bill, expected to be passed by the Senate in the next few days and then signed by President Bush, does offer incentives to certain overextended borrowers and their mortgage lenders.
But it also includes many handouts to first-time homebuyers, longtime homeowners, returning veterans and senior citizens seeking to tap their home equity without getting hit with big fees. Millions of people have the potential to benefit in some way.
Huge numbers of people buying homes for the first time, for instance, will be eligible for what amounts to an interest-free loan from the government. Meanwhile, older Americans will now be able to borrow more and possibly pay less for reverse mortgages that allow them tap the equity in their homes.
Whether larding up the bill with all these benefits is good for taxpayers is a debate for another part of the newspaper. But there is no shame in taking advantage of what is offered. In fact, you would be foolish not to.
Here are some of the new benefits:
RENEGOTIATING MORTGAGES Part of the bill is devoted to the creation of a program that may allow some people to cancel their old mortgage loans and replace them with new fixed-rate loans lasting at least 30 years. The amount of the new loans would be no more than 90 percent of what their property is actually worth now.
So who is eligible? You need to have originated your troubled loan or loans on or before Jan. 1, 2008. The loans in question must be on your primary residence. Vacation homes and investment properties are ineligible. You will also need to verify your income, which many borrowers did not have to do in recent years.
Also, as of March 1, 2008, your monthly housing payment (including the principal on all your various mortgage payments, interest, taxes and insurance) has to have been at least 31 percent of your monthly household income. So if you were earning $5,000 a month and had housing payments of $3,000, you are eligible. But if you had payments of just $1,400, you would not be, presumably because that loan is affordable given the size of your income.
Lenders, however, are not required to give you a better deal under the new law, even if you do meet the qualifications. They may not be willing to negotiate unless they think you are truly on the cusp of foreclosure.
If you manage to get a new loan, you cannot take out a home equity loan for at least five years after you get the new mortgage. You will also have to pay a 1.5 percent fee each year on the remaining balance. Finally, you have to hand over no less than 50 percent of any appreciation on the home to the government once you sell. Sell the house in less than five years, and you will have to turn over as much as all of the gain.
This program ends on Sept. 30, 2011. While it does not officially take effect until Oct. 1, lenders may be willing to start their negotiations with borrowers now.
BREAK FOR FIRST-TIME BUYERS If you are buying a home for the first time, and it is your primary residence, you are eligible for a federal tax credit of $7,500 or 10 percent of the purchase price, whichever is smaller. With a tax credit, you subtract the credit amount from the total you would otherwise pay to the Internal Revenue Service. So if you owe $1,500 and you qualify for the credit, you would end up getting a $6,000 refund.
There are two big catches, though. If you earn a modified adjusted gross income of more than $75,000, or $150,000 if you are married and filing your tax return jointly, the credit starts to phase out. For single people, it phases out completely at $95,000 of annual income, while for married people filing jointly, it phases out at $170,000.
But you have to pay back the credit over the next 15 years, in equal amounts each year when you pay your federal taxes. That makes this more like an interest-free loan than a true credit. According to the National Association of Realtors, there were about 2.5 million first-time home buyers in 2007. A large proportion of them would have qualified for this credit, but whether it is enough to push would-be buyers over the edge this year remains to be seen.
The tax credit is retroactive to home purchases on April 9, 2008, and expires on July 1, 2009. If you purchase a home from Jan. 1, 2009 to June 30, 2009, you can claim the tax credit on your 2008 tax return.
ADDITIONAL DEDUCTION If you are a homeowner who takes the standard deduction on your federal income taxes and does not itemize, this one is for you. You can now take an additional federal tax deduction of $500, or $1,000 if you are married and filing your tax returns jointly. Again, this one is gravy; you get it in addition to the standard deduction.
There are really some good positive elements to this bill. It will encourage Buyers to move now instead of later on purchasing a home In addition Sellers will have an important additional reason not to delay in listing, or if they are listed already, getting the property priced right. The first time home buyer provision has the potential to get the entry level of the market moving again and we all know that will help re-create a move up segment of the market; a segment of the market that is currently almost non-existent.
Cut from Friday's New York Times Article.
By RON LIEBER
Published: July 25, 2008
If you are ignoring the housing bailout bill because you think it benefits only troubled homeowners, you may miss out on a windfall.
The bill, expected to be passed by the Senate in the next few days and then signed by President Bush, does offer incentives to certain overextended borrowers and their mortgage lenders.
But it also includes many handouts to first-time homebuyers, longtime homeowners, returning veterans and senior citizens seeking to tap their home equity without getting hit with big fees. Millions of people have the potential to benefit in some way.
Huge numbers of people buying homes for the first time, for instance, will be eligible for what amounts to an interest-free loan from the government. Meanwhile, older Americans will now be able to borrow more and possibly pay less for reverse mortgages that allow them tap the equity in their homes.
Whether larding up the bill with all these benefits is good for taxpayers is a debate for another part of the newspaper. But there is no shame in taking advantage of what is offered. In fact, you would be foolish not to.
Here are some of the new benefits:
RENEGOTIATING MORTGAGES Part of the bill is devoted to the creation of a program that may allow some people to cancel their old mortgage loans and replace them with new fixed-rate loans lasting at least 30 years. The amount of the new loans would be no more than 90 percent of what their property is actually worth now.
So who is eligible? You need to have originated your troubled loan or loans on or before Jan. 1, 2008. The loans in question must be on your primary residence. Vacation homes and investment properties are ineligible. You will also need to verify your income, which many borrowers did not have to do in recent years.
Also, as of March 1, 2008, your monthly housing payment (including the principal on all your various mortgage payments, interest, taxes and insurance) has to have been at least 31 percent of your monthly household income. So if you were earning $5,000 a month and had housing payments of $3,000, you are eligible. But if you had payments of just $1,400, you would not be, presumably because that loan is affordable given the size of your income.
Lenders, however, are not required to give you a better deal under the new law, even if you do meet the qualifications. They may not be willing to negotiate unless they think you are truly on the cusp of foreclosure.
If you manage to get a new loan, you cannot take out a home equity loan for at least five years after you get the new mortgage. You will also have to pay a 1.5 percent fee each year on the remaining balance. Finally, you have to hand over no less than 50 percent of any appreciation on the home to the government once you sell. Sell the house in less than five years, and you will have to turn over as much as all of the gain.
This program ends on Sept. 30, 2011. While it does not officially take effect until Oct. 1, lenders may be willing to start their negotiations with borrowers now.
BREAK FOR FIRST-TIME BUYERS If you are buying a home for the first time, and it is your primary residence, you are eligible for a federal tax credit of $7,500 or 10 percent of the purchase price, whichever is smaller. With a tax credit, you subtract the credit amount from the total you would otherwise pay to the Internal Revenue Service. So if you owe $1,500 and you qualify for the credit, you would end up getting a $6,000 refund.
There are two big catches, though. If you earn a modified adjusted gross income of more than $75,000, or $150,000 if you are married and filing your tax return jointly, the credit starts to phase out. For single people, it phases out completely at $95,000 of annual income, while for married people filing jointly, it phases out at $170,000.
But you have to pay back the credit over the next 15 years, in equal amounts each year when you pay your federal taxes. That makes this more like an interest-free loan than a true credit. According to the National Association of Realtors, there were about 2.5 million first-time home buyers in 2007. A large proportion of them would have qualified for this credit, but whether it is enough to push would-be buyers over the edge this year remains to be seen.
The tax credit is retroactive to home purchases on April 9, 2008, and expires on July 1, 2009. If you purchase a home from Jan. 1, 2009 to June 30, 2009, you can claim the tax credit on your 2008 tax return.
ADDITIONAL DEDUCTION If you are a homeowner who takes the standard deduction on your federal income taxes and does not itemize, this one is for you. You can now take an additional federal tax deduction of $500, or $1,000 if you are married and filing your tax returns jointly. Again, this one is gravy; you get it in addition to the standard deduction.
Wednesday, July 23, 2008
CHANGING MARKET
Change is the law of life. And those who look only to the past or present are certain to miss the future. - John F. Kennedy
Today's market and economy is the utmost reflection of change. The prices of fuel, food, homes, technology and communication advances and the upcoming elections all reflect change. Whether we like it or not change is what we will see. Knowing this we can either except change by changing our attitudes toward it or get stuck in a rut. Embrace change and take advantage of it.
There are many good deals on homes currently for sale. If you are a first time home buyer now is your chance to pick up some good deals and take advantage of the down payment assistance programs available to FHA buyers.
I work closely with several lenders who have access to these good programs and can tell you what you need to do to qualify for them.
Please call or shoot over an email if you have any questions regarding the home buying process or where to start!
Hang in There... The best is yet to come.
Mortgage Rates This Week
30 Year Fixed: 6.26%
15 Year Fixed: 5.78%
1 Year Adj: 5.10%
(U.S. Weekly Averages)
Today's market and economy is the utmost reflection of change. The prices of fuel, food, homes, technology and communication advances and the upcoming elections all reflect change. Whether we like it or not change is what we will see. Knowing this we can either except change by changing our attitudes toward it or get stuck in a rut. Embrace change and take advantage of it.
There are many good deals on homes currently for sale. If you are a first time home buyer now is your chance to pick up some good deals and take advantage of the down payment assistance programs available to FHA buyers.
I work closely with several lenders who have access to these good programs and can tell you what you need to do to qualify for them.
Please call or shoot over an email if you have any questions regarding the home buying process or where to start!
Hang in There... The best is yet to come.
Mortgage Rates This Week
30 Year Fixed: 6.26%
15 Year Fixed: 5.78%
1 Year Adj: 5.10%
(U.S. Weekly Averages)
Monday, July 21, 2008
Short Sale Vs. Regular Sale
Are they different?
by bob Stephens, CBR, e-PRo
Not much! Let's look at it this way. A regular normal sale contains an offer and an acceptance by the seller. The contract then is packed with contingencies that are pretty much in favor of the buyer. They can walk away from the deal in many ways as the deal progresses. The seller does not have this ability unless the buyer breaches the contract. Most notable of the contingencies, usually, is that the buyer must borrow money to buy the house and has a financing contingency to obtain a loan from a lender.
Now let's look at it in the "short sale" mode. Everything is the same including an OFFER by the buyer and an ACCEPTANCE by the seller, except there is a contingency regarding lenders for BOTH the buyer and the seller. The seller owes MORE to the lender than the house is worth and must now ask the lender to "forgive" some of the money owed to them to be able to close the deal. As you see, there are two lenders involved in this transaction- one for the buyer and one for the seller. And as always the lenders make a lot of demands on paperwork to clear their delas and be able to close. The paperwork is just a little different: the seller must be able to prove hardship and document WHY he cannot pay what he owes the lender. On the other hand, the buyer must prove WHY and how he can pay back the lender.
Neither of these lenders OWNS the house and never will unless they are forced to foreclose on it. The seller's lender has a lien on it that must be released so that the buyer's lender has clear title and can then place a new lien on the home.
There is a misconception that the seller's lender seems to be the only one that has any power. Yes, of course they have some power, but so does the buyer's lender; the buyer's lender makes loans as a business to make money; the seller's lender wants to make the deal so they don't have the great expense of foreclosure. Too many forclosures and they will have a real problem getting their loans insured.
I hope a different lok at the transactions will make them a little cleaner.
Bob Stephens is a managing broker of West USA Realty
by bob Stephens, CBR, e-PRo
Not much! Let's look at it this way. A regular normal sale contains an offer and an acceptance by the seller. The contract then is packed with contingencies that are pretty much in favor of the buyer. They can walk away from the deal in many ways as the deal progresses. The seller does not have this ability unless the buyer breaches the contract. Most notable of the contingencies, usually, is that the buyer must borrow money to buy the house and has a financing contingency to obtain a loan from a lender.
Now let's look at it in the "short sale" mode. Everything is the same including an OFFER by the buyer and an ACCEPTANCE by the seller, except there is a contingency regarding lenders for BOTH the buyer and the seller. The seller owes MORE to the lender than the house is worth and must now ask the lender to "forgive" some of the money owed to them to be able to close the deal. As you see, there are two lenders involved in this transaction- one for the buyer and one for the seller. And as always the lenders make a lot of demands on paperwork to clear their delas and be able to close. The paperwork is just a little different: the seller must be able to prove hardship and document WHY he cannot pay what he owes the lender. On the other hand, the buyer must prove WHY and how he can pay back the lender.
Neither of these lenders OWNS the house and never will unless they are forced to foreclose on it. The seller's lender has a lien on it that must be released so that the buyer's lender has clear title and can then place a new lien on the home.
There is a misconception that the seller's lender seems to be the only one that has any power. Yes, of course they have some power, but so does the buyer's lender; the buyer's lender makes loans as a business to make money; the seller's lender wants to make the deal so they don't have the great expense of foreclosure. Too many forclosures and they will have a real problem getting their loans insured.
I hope a different lok at the transactions will make them a little cleaner.
Bob Stephens is a managing broker of West USA Realty
Saturday, July 19, 2008
Buyer Needs in Todays Market
As a seller many home owners are being faced with the fact that many of the buyers in the $300,000 or less range are taking advantage of the current lending conditions and calling upon the use of FHA and many of the downpayment assistance programs available to them in order to buy their "new" home.
Many sellers are being ask to provide closing cost assistance as well as down payment assistance for these buyers in order for their home to sell. Typically buyers in need of this assistance will work with their agent to adjust the price of the home (as long as the market will bear the price increase and still appraise for the appropriate value)
After an agent and their buyers sit down and review all the comps, the neighborhood, value and need of the buyer they may submit an offer asking as much as 7% towards their costs from the seller to help them purchase their new home.
This is a tough market for sellers who are trying to get the max amount for the home, but also trying to meet the needs of the buyers since these seem to be the opportunities most sellers have to sell their home. The typical first time home buyer does not have the needed 5%- 7% to be able to get a house on their own without the sellers assistance and in many cases the sellers do not have any other options for conventional buyers that are putting huge chunks of money down.
One good thing sellers who are not facing foreclosure or short sale can be greatful for are these buyers. 1st time home buyers requesting this assistance do not normally have the money saved in the bank and that is why they are purchasing these turn-key style homes where no immediate money is needed for fixing or remodeling in order to make the home livable.
A majority of the bank owned properties that I have encounter in recent months are clearly in need of major things such as appliances, carpet and paint, I have seen things missing to the extreme, such as air conditioning units, light fixtures and cabinets that would need replacing in order to make the "As Is" Steal that many people believe bank owned homes are reasonably livable.
So keep your head up when you see the banked owned down the street go up for 10-30 thousand less than you want for your property it might not be a BAD thing! In the last few months I have sold Turn-Key Homes for as much as $30,000 more than one foreclosure in the same neighborhood sold for.
What is desirable and looks appealing is still a key player in most Buyers minds!
For a free in home evaluation of your house and what you need to make it marketable... Call me.
Many sellers are being ask to provide closing cost assistance as well as down payment assistance for these buyers in order for their home to sell. Typically buyers in need of this assistance will work with their agent to adjust the price of the home (as long as the market will bear the price increase and still appraise for the appropriate value)
After an agent and their buyers sit down and review all the comps, the neighborhood, value and need of the buyer they may submit an offer asking as much as 7% towards their costs from the seller to help them purchase their new home.
This is a tough market for sellers who are trying to get the max amount for the home, but also trying to meet the needs of the buyers since these seem to be the opportunities most sellers have to sell their home. The typical first time home buyer does not have the needed 5%- 7% to be able to get a house on their own without the sellers assistance and in many cases the sellers do not have any other options for conventional buyers that are putting huge chunks of money down.
One good thing sellers who are not facing foreclosure or short sale can be greatful for are these buyers. 1st time home buyers requesting this assistance do not normally have the money saved in the bank and that is why they are purchasing these turn-key style homes where no immediate money is needed for fixing or remodeling in order to make the home livable.
A majority of the bank owned properties that I have encounter in recent months are clearly in need of major things such as appliances, carpet and paint, I have seen things missing to the extreme, such as air conditioning units, light fixtures and cabinets that would need replacing in order to make the "As Is" Steal that many people believe bank owned homes are reasonably livable.
So keep your head up when you see the banked owned down the street go up for 10-30 thousand less than you want for your property it might not be a BAD thing! In the last few months I have sold Turn-Key Homes for as much as $30,000 more than one foreclosure in the same neighborhood sold for.
What is desirable and looks appealing is still a key player in most Buyers minds!
For a free in home evaluation of your house and what you need to make it marketable... Call me.
This is a fantastic article to help you select your Realtor if you are looking to sell your home.
The Jen Team will sit down with you and devise a plan for what will work in todays market and what needs to be done to sell your home. Our honesty is our best policy and we will do our best to work with every situation or give you the alternatives you deserve to make your best informed decision before you list your home.
If you are interested in Selling or just curious about the current market conditions, call our expect listing agent Dani Miller at 480-695-2010 for a free consultation today!
Tips on choosing listing agent in today's market
By Dian Hymer Published: 11/26/2007
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It wasn't too long ago when it didn't matter as much which real estate agent you chose to sell your house if it was located in one of the many hot seller markets. Listings sold without much assistance; many soon after the for-sale sign went up. Today, choosing the right agent for the job can make the difference between a sale and no sale.
There are many factors to consider in selecting an agent today. One is that many of the agents working now entered the business recently. They've never seen a softer home-sale market before. This doesn't mean that you shouldn't use an agent who doesn't have decades of experience. But, it means you need to find an agent with a definite set of skills.
Most sellers in this market want and need an agent that will provide an aggressive and broad-based marketing plan. However, some sellers may not be aware of how important it is to hire an agent who is an adept communicator. Today's successful agents don't stop selling when they find a buyer for your home. They manage the transaction carefully and skillfully until the sale closes.
It's not enough for an agent to promise to hold your home open every weekend until it sells. In fact, this might do more harm than good. In a slow market, a listing can be overexposed to the market and become shopworn.
The stress level of selling can be intense, particularly if property values are declining. Buyers can be demanding. You need to have confidence that your agent is representing your best interests and negotiating on your behalf in a professional manner.
Negotiating a purchase contract in this market can be an arduous endeavor. It may take multiple counteroffers back and forth to hammer out a deal. And, the fall-out rate is higher today than it was a few years ago.
Selecting an agent who is a good negotiator, who is patient and who will explore all options before letting a deal fall apart gives you a leg up. It helps if your agent has a good working relationship with other agents in the area. One of these agents is likely to represent the buyer for your home.
HOME SELLER TIP: Many agents, and real estate brokerage companies, will leave the business when they discover that they can't make enough money in the current market. Real estate agent ranks swelled immensely in recent years. For example, in California there are now 50 percent more real estate agents in the business than there were five years ago. Make sure that you work with an agent and a brokerage firm that is in the business for the long term.
Ask any agent you consider to provide you with a detailed marketing plan to let you know how he or she will accomplish the sale of your home. Don't even consider listing with an agent that doesn't market extensively on the Internet. Studies show that Internet buyers discount listings online that don't have photos. They assume that something must be wrong with the property. Check a sample of an agent's Internet marketing before signing up.
You may find that agents want longer than 90-day listing periods if sales are very slow in your area. This is understandable; agents typically pay for the marketing, and it's generally taking a lot longer for most homes to sell. Keep this in mind when you select your agent. You could be working with this person for some time.
THE CLOSING: A reliable source of agent recommendations is friends and associates who sold recently in your area, and would hire their agent again.
Dian Hymer is author of "House Hunting, The Take-Along Workbook for Home Buyers" and "Starting Out, The Complete Home Buyer's Guide," Chronicle Books
The Jen Team will sit down with you and devise a plan for what will work in todays market and what needs to be done to sell your home. Our honesty is our best policy and we will do our best to work with every situation or give you the alternatives you deserve to make your best informed decision before you list your home.
If you are interested in Selling or just curious about the current market conditions, call our expect listing agent Dani Miller at 480-695-2010 for a free consultation today!
Tips on choosing listing agent in today's market
By Dian Hymer Published: 11/26/2007
Save
Share
It wasn't too long ago when it didn't matter as much which real estate agent you chose to sell your house if it was located in one of the many hot seller markets. Listings sold without much assistance; many soon after the for-sale sign went up. Today, choosing the right agent for the job can make the difference between a sale and no sale.
There are many factors to consider in selecting an agent today. One is that many of the agents working now entered the business recently. They've never seen a softer home-sale market before. This doesn't mean that you shouldn't use an agent who doesn't have decades of experience. But, it means you need to find an agent with a definite set of skills.
Most sellers in this market want and need an agent that will provide an aggressive and broad-based marketing plan. However, some sellers may not be aware of how important it is to hire an agent who is an adept communicator. Today's successful agents don't stop selling when they find a buyer for your home. They manage the transaction carefully and skillfully until the sale closes.
It's not enough for an agent to promise to hold your home open every weekend until it sells. In fact, this might do more harm than good. In a slow market, a listing can be overexposed to the market and become shopworn.
The stress level of selling can be intense, particularly if property values are declining. Buyers can be demanding. You need to have confidence that your agent is representing your best interests and negotiating on your behalf in a professional manner.
Negotiating a purchase contract in this market can be an arduous endeavor. It may take multiple counteroffers back and forth to hammer out a deal. And, the fall-out rate is higher today than it was a few years ago.
Selecting an agent who is a good negotiator, who is patient and who will explore all options before letting a deal fall apart gives you a leg up. It helps if your agent has a good working relationship with other agents in the area. One of these agents is likely to represent the buyer for your home.
HOME SELLER TIP: Many agents, and real estate brokerage companies, will leave the business when they discover that they can't make enough money in the current market. Real estate agent ranks swelled immensely in recent years. For example, in California there are now 50 percent more real estate agents in the business than there were five years ago. Make sure that you work with an agent and a brokerage firm that is in the business for the long term.
Ask any agent you consider to provide you with a detailed marketing plan to let you know how he or she will accomplish the sale of your home. Don't even consider listing with an agent that doesn't market extensively on the Internet. Studies show that Internet buyers discount listings online that don't have photos. They assume that something must be wrong with the property. Check a sample of an agent's Internet marketing before signing up.
You may find that agents want longer than 90-day listing periods if sales are very slow in your area. This is understandable; agents typically pay for the marketing, and it's generally taking a lot longer for most homes to sell. Keep this in mind when you select your agent. You could be working with this person for some time.
THE CLOSING: A reliable source of agent recommendations is friends and associates who sold recently in your area, and would hire their agent again.
Dian Hymer is author of "House Hunting, The Take-Along Workbook for Home Buyers" and "Starting Out, The Complete Home Buyer's Guide," Chronicle Books
Friday, June 13, 2008
Home Owners Counseling
Mortgage Investors to Chip in for Homeowners' Counseling -- Washington Post Washington Post, By Renae Merle June 12, 2008
Mortgage investors are rolling out a plan to pay housing counselors who assist troubled homeowners in avoiding foreclosure.
Nonprofit counselors have long depended on charities and governments for funding. They see the change as a long-sought acknowledgment from the financial industry that their efforts to help distressed homeowners also help the people who lent them money.
The effort is expected to cost the industry millions of dollars over the next two years and expand the availability of services, said Tom Deutsch, deputy executive director of the American Securitization Forum, the trade group behind the change.
"It's a good investment," Deutsch said. "It is helping borrowers understand their options, and the credit counselors are very good at doing that."
Hope Now, a coalition of lenders and nonprofit groups, plans to announce today adoption of the guidelines for the payments, up to $150 for a session with a distressed homeowner. Nonprofit agencies can receive more if there is a positive outcome for the lender.
"This is a great way to prevent foreclosures, to be connected with counselors," said Faith Schwartz, Hope Now's executive director.
The industry has received mixed reviews of its work with homeowners. Lenders tout their progress through Hope Now, noting that nearly 1.6 million borrowers have received help. But advocates have said that efforts so far have relied too heavily on establishing repayment plans instead of making changes to the terms of a loan, such as lowering the principal owed or the interest rate. The Office of the Comptroller of the Currency noted in a report yesterday that repayment plans outnumbered loan modifications 4 to 1 during March 2008.
The money would be available for counselors who work with homeowners who are late on their payments -- or that think they will be soon. It would not cover homeowners already in bankruptcy or many who have had credit counseling within the past year.
The funds will be in addition to the $180 million in grants Congress has approved for nonprofit counseling agencies, as well as payments the industry already makes to the 450 housing counselors who staff a hotline for homeowners. That hotline, 888-995-HOPE, has reported 315,000 calls this year, compared with 245,000 for all of last year.
"If the financial services industry embraces this fee-for-service, the value that counseling brings, this could be revolutionary," said Marietta Rodriguez, director of national homeownership programs at NeighborWorks America, a nonprofit group based in the District. "Right now, counseling is really being paid philanthropically and through government sources, and given the magnitude of the problem, they are not sufficient sources."
The extra money would enable a counseling center to build a more sustainable line of business, Rodriguez said. But details still need to be worked out and the process could be difficult for small local counseling services because it requires them to establish separate contracts with each lender, she said.
The payments will be helpful, but they would not fully reimburse counselors for the 8 to 12 hours they spend helping a homeowner negotiate a loan modification with a lender, said Marcia Griffin, director of HomeFree-USA, a District-based homeownership counseling group.
HomeFree has hired 10 employees over the past year as demand jumped. The nonprofit is contacted by about 25 homeowners a day, compared with 10 a week before the housing crisis began, Griffin said.
"Somebody has to come up some more money in order to help nonprofit organizations to service these people," she said. "If I had more money to work with, we would be able to do many, many more things."
Mortgage investors are rolling out a plan to pay housing counselors who assist troubled homeowners in avoiding foreclosure.
Nonprofit counselors have long depended on charities and governments for funding. They see the change as a long-sought acknowledgment from the financial industry that their efforts to help distressed homeowners also help the people who lent them money.
The effort is expected to cost the industry millions of dollars over the next two years and expand the availability of services, said Tom Deutsch, deputy executive director of the American Securitization Forum, the trade group behind the change.
"It's a good investment," Deutsch said. "It is helping borrowers understand their options, and the credit counselors are very good at doing that."
Hope Now, a coalition of lenders and nonprofit groups, plans to announce today adoption of the guidelines for the payments, up to $150 for a session with a distressed homeowner. Nonprofit agencies can receive more if there is a positive outcome for the lender.
"This is a great way to prevent foreclosures, to be connected with counselors," said Faith Schwartz, Hope Now's executive director.
The industry has received mixed reviews of its work with homeowners. Lenders tout their progress through Hope Now, noting that nearly 1.6 million borrowers have received help. But advocates have said that efforts so far have relied too heavily on establishing repayment plans instead of making changes to the terms of a loan, such as lowering the principal owed or the interest rate. The Office of the Comptroller of the Currency noted in a report yesterday that repayment plans outnumbered loan modifications 4 to 1 during March 2008.
The money would be available for counselors who work with homeowners who are late on their payments -- or that think they will be soon. It would not cover homeowners already in bankruptcy or many who have had credit counseling within the past year.
The funds will be in addition to the $180 million in grants Congress has approved for nonprofit counseling agencies, as well as payments the industry already makes to the 450 housing counselors who staff a hotline for homeowners. That hotline, 888-995-HOPE, has reported 315,000 calls this year, compared with 245,000 for all of last year.
"If the financial services industry embraces this fee-for-service, the value that counseling brings, this could be revolutionary," said Marietta Rodriguez, director of national homeownership programs at NeighborWorks America, a nonprofit group based in the District. "Right now, counseling is really being paid philanthropically and through government sources, and given the magnitude of the problem, they are not sufficient sources."
The extra money would enable a counseling center to build a more sustainable line of business, Rodriguez said. But details still need to be worked out and the process could be difficult for small local counseling services because it requires them to establish separate contracts with each lender, she said.
The payments will be helpful, but they would not fully reimburse counselors for the 8 to 12 hours they spend helping a homeowner negotiate a loan modification with a lender, said Marcia Griffin, director of HomeFree-USA, a District-based homeownership counseling group.
HomeFree has hired 10 employees over the past year as demand jumped. The nonprofit is contacted by about 25 homeowners a day, compared with 10 a week before the housing crisis began, Griffin said.
"Somebody has to come up some more money in order to help nonprofit organizations to service these people," she said. "If I had more money to work with, we would be able to do many, many more things."
Monday, June 9, 2008
MLS Stats for MAY
Southeast Valley areas were up 19% with these areas standing out:
Area 503 (North Tempe) up 73%!!
Area 504 (South Tempe) up 71%!!
Area 519 (S. of Apache Junction) up 69%
Area 514 (S.E. Mesa) up 41%
Area 505 (West Mesa) up 30%
Area 517 (Apache Junction) up 26%
Area 510 (Gilbert) up 26%
Very encouraging for our sellers. Buyers remember now is the time to buy!
Call me if you are looking for that great deal or what to get some more information on searching for properties.
Area 503 (North Tempe) up 73%!!
Area 504 (South Tempe) up 71%!!
Area 519 (S. of Apache Junction) up 69%
Area 514 (S.E. Mesa) up 41%
Area 505 (West Mesa) up 30%
Area 517 (Apache Junction) up 26%
Area 510 (Gilbert) up 26%
Very encouraging for our sellers. Buyers remember now is the time to buy!
Call me if you are looking for that great deal or what to get some more information on searching for properties.
Moving Can Be a Pain
Moving can be very exciting...but it can also be a bit of a pain as well. Besides packing and unpacking, there is a long list of details to be handled. Things like choosing a mover, connecting utilities, getting Internet and cable service, or subscribing to newspapers or magazines in a new area can be quite a chore. And if you forget to connect one of the utilities you could be stuck in your new home for several days without that much needed service. To ease the stress of moving and schedule new connections for all of the utilities in one convenient location, simply logon to www.whitefence.com.
You can quickly compare prices for movers, phone, electricity, television, or high-speed Internet. Just select the service you wish to compare--for example, phone, cable, and electric. Or, enter your address on the home page, hit search, and within seconds a list of services and prices available in that area will appear. Next, click on the service of your choice to view details and pricing or comparison shop by choosing three providers. Once you determine the provider, select the service plan, complete the requested information, enter the connection date, and within minutes a confirmation will be sent to you.
If you want to change your current provider, simply hit the icon for phone, cable, or internet, select "switch provider", complete the requested information and a list of providers in the local area will appear. Choose the new provider and the service will be changed.
Additionally, on the site you can complete a change of address form, subscribe to local newspapers, and order magazine subscriptions. Moving to a new home should be enjoyable and exciting. Using this tool can help remove a bit of the stress of moving and will also help save valuable time.
Thanks to Mike Bennett.
You can quickly compare prices for movers, phone, electricity, television, or high-speed Internet. Just select the service you wish to compare--for example, phone, cable, and electric. Or, enter your address on the home page, hit search, and within seconds a list of services and prices available in that area will appear. Next, click on the service of your choice to view details and pricing or comparison shop by choosing three providers. Once you determine the provider, select the service plan, complete the requested information, enter the connection date, and within minutes a confirmation will be sent to you.
If you want to change your current provider, simply hit the icon for phone, cable, or internet, select "switch provider", complete the requested information and a list of providers in the local area will appear. Choose the new provider and the service will be changed.
Additionally, on the site you can complete a change of address form, subscribe to local newspapers, and order magazine subscriptions. Moving to a new home should be enjoyable and exciting. Using this tool can help remove a bit of the stress of moving and will also help save valuable time.
Thanks to Mike Bennett.
Thursday, May 29, 2008
Short Sale! Beat the Bank
5200 sf home on Estate Size Lot!5 bedroom 4.5 bath
Pool
Guest Casita
For Video Tour of this property visit: http://media.azimaging.net/23448V
Please click on the link(s) below to view property information.
Buyer Full Page
www.jenteam.com
Market Conditions
Things are starting to pick up around here. Homes are selling and foreclosures are becoming a lot more popular. Short Sales are about every other listing that I am seeing. If you have the patience to wait to hear back on a short sale (the last one I did just took 52 days for bank approval) then you will be getting a great deal off of what the original owner paid. If you can swing a "Buy" now is the time. Unfortunately, for a lot of people out there it is not the best time to sell. But if you think about it, it can not be a buyer and seller market at the same time.
If you are a first time home buyer there are many programs out their bending over backward to help you to get into a home. Why you ask? The banks make their money by lending new money to people and a lot of the move up buyers right now our stuck trying to sell their own houses. New buyers show banks dollar signs. For every foreclosure a bank can dispose of quickly they can do 4 new loans and create a larger cash flow for that bank. For more information regarding short sales or foreclosure properties contact me.
If you are a first time home buyer there are many programs out their bending over backward to help you to get into a home. Why you ask? The banks make their money by lending new money to people and a lot of the move up buyers right now our stuck trying to sell their own houses. New buyers show banks dollar signs. For every foreclosure a bank can dispose of quickly they can do 4 new loans and create a larger cash flow for that bank. For more information regarding short sales or foreclosure properties contact me.
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