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We live in Tempe and so do many of our friends. We though the results of this Tempe Resident Survey would be interesting. We found it in the Tempe News Room.
"City of Tempe residents have voiced positive feelings and offered constructive feedback about the services, programs and facilities provided in their community.
In October 2009, more than 800 residents weighed in on questions focusing on water service, parks, trash collection, public safety and more. Their ratings give the City of Tempe important information about how well it is providing services. For the third year in a row, the City of Tempe rated above average in almost every area that was assessed in the survey. Complete 2009 survey results are available at www.tempe.gov/government.aspx - click on the link under the “Statistics” heading.
Kansas-based ETC Institute conducted the survey and compared Tempe to its database of cities across the country. Survey respondents expressed overall satisfaction levels of 90 percent – that’s 34 percent above the national average.
The Tempe City Council will discuss the survey results at their 6 p.m. Issue Review Session this Thursday, March 25. The meeting is in Council Chambers, 31 E. Fifth St.
Highlights of the 2009 survey include:
Satisfaction with the condition of sidewalks rated 33 percent above the national average (78 percent in Tempe vs. 56 percent in U.S.)
Satisfaction with the quality of recreation centers rated 30 percent above the national average (83 percent in Tempe vs. 53 percent in U.S.)
Satisfaction with condition of streets rated 26 percent above the national average (80 percent in Tempe vs. 54 percent in U.S.)
Satisfaction with the overall appearance of the city rated 20 percent above average (85 percent in Tempe vs. 65 percent in U.S.)"
Tempe Housing Improvement Program accepting pre-applications from residents
Pre-applications are being accepted for the Tempe’s Housing Improvement Program. This program provides deferred or low-interest amortized loans to income-qualified homeowners to correct code violations, existing deficiencies or other hazardous conditions in their home.
To be eligible, the applicant must be a Tempe resident, the owner-occupant of the home to be rehabilitated and meet program income limit guidelines.
Grants are also available for home modifications for persons with disabilities and/or emergency repairs that affect the health, life or safety of the occupants.
To request a pre-application, or for more information, contact the Tempe Housing Improvement Services Division at 480-858-2154 (TDD: 480-350-8913) or visit the office at 21 E. Sixth Street, Suite 214, Tempe, AZ 85281 (Tempe News room)
The number of active listings in the Phoenix real estate market remained relatively constant for yet another month. The drop in the number of listings was only 587 listings from March 1st to April 1st. The big news expects to be the total number of homes sold for March 2010. It looks as though home sales may approach the 9,000 mark, making March the biggest residential sales month since last July.
Read the chart this way: "Residential listings in The Phoenix area totaled 34,461 to begin April 2010, a drop of 587 from March. 14,087 of those listings are foreclosure listings (bank owned or REO properties and short sales). Foreclosures make up 40.9% of the total listings.
Talk of "shadow inventory" still looms on blogs and in the news.
The second chart shows the breakdown between the normal listings and the foreclosure listings. Read the chart this way: "20,374 listings are "normal listings that have been on the market for an average of 172 days. 14,087 listings are foreclosure listings that have been on the market an average of 102 days."
Short sales have dragged that number higher as bank owned homes slip off the market much sooner than short sales in Metro Phoenix. Real estate with short sales continues to be an adventure.
I constantly get buyer clients asking me about the pros and cons of short sales. In fact, I've received so many questions I created a short sale page on my website and I refer clients to that page. I'm sure I'm not the only realtor who has done that in this market.
I'll tell you that I've had my share of successful short sales, both on the selling and buying side. I've also had my share of short sales that have blown up because 1.) a HELOC demanded a promissory note and the seller refused to sign it OR 2.) a bank wouldn't let go of an unreasonably high BPO. [Side note: If the realtor who did the BPO for my short sale on Desert Cove Rd in Glendale is reading this -- your BPO WAS too high and the house sold for $10,000 less as a REO] Since I have a fairly analytical mind
(which can be a curse in a marriage) I decided to see if I could figure out the statistical probabilities of a short sale closing escrow.
My bachelor's degree is in business administration and I did well in quantitative analysis. However, I did not want to create a thesis. I was just seeking a simple way to convey the success rate of short sales to my clients. Here's what I came up with: divide the number of closed short sales in one month by the combined total of the closed short sales plus the canceled short sales. Expressed mathematically:
closed short sales / (closed short sales + cancelled short sales) = % of success
I used only canceled short sales and not those that "expired" or were "temporarily off market." I reasoned that expired short sales could simply be re-listed, were generally caused because the listing realtor lost track of time, and that most of them received an extension. I did not count those that were "temporarily off market" because they would probably end up as either closed or canceled.
Here's my conclusion based on 12 months of statistics from the Arizona Regional Multiple Listing Service: There is a slightly better chance closing a short sale than winning at a roulette table. Remember that roulette has a 50% chance of winning if you play either "odd/even" or "red/black."
The 12 month chart shown below illustrates that an average of 53.7% of short sales close. Read the chart in this manner: "4,150 foreclosures sales (bank owned and short sales combined) occurred in February 2010. 1,438 of those sales were short sales. 1,167 short sales were canceled in February 2010. Therefore, 55.2% of short sales were successfully closed in February 2010." You will also note that the success of short sales has been greater in the last six months than in the first six
months of the period.
I can already hear all of the short sale experts across America claiming a much higher success rate. I have a higher success rate too. However, I present these numbers for your information or your humor -- whichever you prefer. Actually, I kind of like the roulette analogy and have already used it twice today. Next time a client asks you if they should consider buying short sales say to them "red or black?"
Phoenix Foreclosures -- sales up in February 2010.
February had only had 28 days but residential sales were up 10% for short sales and bank owned homes and 14% overall in Metro Phoenix. Foreclosures continue to dominate in Metro Phoenix. Real estate residential sales increased from 5,812 in January to 6,613 home sales in February 2010. The reason continues to be last minute shopping for the tax credit fueled by low interest rates. This trend should continue throughout the next few months.
Read the chart in this manner: 6,613 homes sold in February in Metro Phoenix . Real estate defined as "normal" sales (not bank owned property or short sales) accounted for 2,463 sales, or 37.2% of the total. 4,150 sales were foreclosure related which comprised 62.8% of the total.
Year over year sales, commonly known as YOY (a common industry comparison standard), have been up for 21 consecutive months (not completely shown by the chart ). YOY essentially compares the sales in February 2010 to the sales in February 2009, the sales in January 2010 to the sales in January 2009, and so on. In other words, Phoenix real estate sales have consistently been improved from the previous year.
Phoenix foreclosures (bank owned or REO property and shorts sales) officially accounted for over 1/2 all sales in the Phoenix real estate market beginning in October 2008. They have surged as high as 75.9% but have yet to drop below the 50% mark. I have statistics that go back to June 2007. Contact me for more information.
My next post will evaluate the number of Phoenix foreclosure sales and their makeup in terms of how many were lender owned properties and how many were short sales.
Phoenix Foreclosures, Eviction Laws, and Forcible Detainers
Homeowner Rights, Phoenix Foreclosures, Eviction Laws, and Forcible Detainers
A Forcible Entry and Detainer is an action that a new property owner (the foreclosing bank) can take if the existing occupant refuses to leave after appropriate notice (90 day notice of Trustee Sale)in Metro Phoenix. Foreclosure occupants could be either a tenant or original owner of property that was sold at a Phoenix foreclosure or trustee's sale. Foreclosure eviction laws are subject to change, but this article is current In Arizona as of March 2010. This article was prepared with the
help of a good friend, Georgi
Stratton. Her contact info is on the bottom of the post.
The tenant/occupant receives a written demand to vacate the property. The term of the period to vacate is dictated by the type of occupancy - whether commercial or residential and whether a tenant or an owner that was foreclosed on. This term normally is either 5 or 7 days, unless the contract states otherwise. After the 5-7 days expire and the tenant/occupant still refuse to leave then a complaint for a forcible detainer action can be filed. The statutes provide for a very short notice period before a
court hearing.
The sole issue at the court hearing is whether or not the tenant/occupant has the right to possession. If they do not then they will be found guilty of a forcible entry and detainer. The court will enter an order directing the tenant/occupant to vacate within 5 judicial days. After that period has expired the Sheriff's office can then evict the tenants/occupants, remove their personal property and give the rightful owner possession and control of the property.
It would be wise for the rightful owner to change the locks and take steps to protect the property.
Typically the seller must vacate the home within 7 to 14 days after a Trustee Sale (auction). Often the bank will offer the homeowner a $1,000 - $2,000 relocation fee if the homeowner moves within several days and leaves the home is good condition. If a foreclosed homeowner in the Phoenix area is being forced out without a moving fee or several days to move, the homeowner has rights. Inform the lender’s representative that you request a moving fee or are requiring them to file a Forcible Entry and Detainer
Action. If they
refuse to comply with either of these or if you feel your rights are being infringed upon, contact the local Sheriff for enforcement of current metropolitan Phoenix foreclosure eviction laws.
If the lender has to file a Forcible Entry and Detainer Action, you will not be able to get any cash for moving expenses.
Georgi Stratton
,Paralegal - Director of Short Sales,
Winsor & Coleman, PLC
Direct: 480.695.6565
Fax: 480.699.8853
Email: georgistratton@yahoo.com
Listings remain stable in Phoenix Real Estate Market - March 2010
Phoenix Real Estate Market remains dominated by Phoenix foreclosures.
The number of active listings in and around metropolitan Phoenix remained virtually unchanged from February to March of 2010. As depicted in the chart, property listings hit a several year low in September 2009. They have been slowly on the rise since that time. The chart also indicates the dramatic difference since 2008 when listings were over 50,000, thereby accounting for the swing in the market from a complete buyer's market to a market that has occasionally been referred to
as a seller's market in Phoenix. Real estate listings in some locations around the Valley have sparked a seller's market because of extreme competition for low priced Metro Phoenix foreclosures. It's no real surprise because real estate prices in the Phoenix housing market are at their lowest levels in 10-years AND interest rates are
still low.
The chart also shows that 41.2% of all listings in the Phoenix area are
foreclosures. I am defining foreclosures as bank owned homes and short
sales.
I love Tempe and have an affinity for the sales trends of Tempe Homes. Our brokerage is headquartered out of Tempe, AZ just 2 miles from Arizona State University. Tempe is filled with history, great neighborhoods, entertainment, sports and a sense of community. Not only that, it's centrally located with many of the valley's main freeways passing through or around it. So down to business.
Tempe, along with Scottsdale and Paradise Valley, were three of the cities that withstood the rapid depreciation we experienced during 2007 and 2008 for the longest period of time. Perhaps saying they withstood depreciation is not entirely accurate. It's more accurate to say they maintained higher values than most surrounding Phoenix communities. Let's talk about the below chart provided by the Cromford Report™.
The meter in the upper left hand corner indicates the current price per square foot in Tempe is almost $116. The meter on the top right corner indicates the annual average price per square foot for 2010 is about $118 per square foot.
The middle graphs indicate the averages expressed in monthly and annual terms. You can see that the prices spiked as much as $10.00 per square foot in the timeframe between June and August 2009. That was attributed to increased home purchases and occasional bidding wars over properties when buyers thought the tax credit was going to expire.
As a point of reference, price per square foot in Tempe two years ago was $157. 3 years ago, In February of 2007, the price per square foot was about $178. It becomes clear that a $20 drop per-year has been the standard. Have we bottomed out? Except for the upward spikes shown in the graph Tempe appears to be somewhat flat. Is this the time to take a serious look at Tempe homes for sale?
There are a lot of new homes in the greater Phoenix metropolitan area. Face it, Phoenix has not been around as long as many of the east coast cities. I can go six months showing homes at not see a home that was built before 2000. This statement would not be true in many cities from across the United States. So, if you live on the east coast and are reading this blog just bear with me.
Lately I've been showing lots of homes to clients who want to live in Tempe, Arizona. I came up with an idea to write about the "Top 10 signs you're in a house that was built in the 50's - 60's." Here we go:
10. The electrical power reaches your home from a cable dangling over your head.
9. The trash is picked up in an alley from behind your house.
8. The water heater is outside.
7. The power box is 18 inches square.
6. Armstrong linoleum tile matches your pink toilet.
5. All of the interior cabinetry is quarter inch stained plywood.
4. The windows crank open.
3. The gas heater is in the hallway closet.
2. The doorbell is a Nutone chime.
1. The stove does nothing but get hot.
This article was sent to me by a friend in the mortgage industry. It's not an article specifically about relocation, but an interesting look at what people are considering "must have" features in their homes. The survey was conducted by AVID Ratings Co.,which conducts an annual survey of home-buyer preferences. CEO Paul Cardis says these are 10 "must have" features in new homes. This survey is not focused specifically on Phoenix / Scottsdale, Arizona relocation. Rather, it is a Nationwide
survey and here are the direct quotes:
1. Large Kitchens, With an Island
"If you're going to spend design dollars in a home , spend them where people want them -- spend them in the kitchen," Cardis said. Granite countertops are a must for move-up buyers and buyers of custom homes, but for others "they are on the bubble," Cardis said.
2. Energy-Efficient Appliances, High-Efficiency Insulation and High Window Efficiency
Among the "green" features touted in real estate, these are the ones home buyers value most, he said. While large windows had been a major draw, energy concerns are giving customers pause on those, he said. The use of recycled or synthetic materials is only borderline desirable.
3. Home Office/Study
People would much rather have this space rather than, say, a formal dining room. "People are feeling like they can dine out again and so the dining room has become tradable," Cardis said. And the home theater may also be headed for the scrap heap, a casualty of the "shift from boom to correction," Cardis said.
4. Main-Floor Master Suite
This is a must feature for empty-nesters and certain other buyers, and appears to be getting more popular in general, he said. That could help explain why demand for upstairs laundries is declining after several years of popularity gains.
5. Outdoor Living Room
The popularity of outdoor spaces continues to grow, even in Canada, Cardis said. And the idea of an outdoor room is even more popular than an outdoor cooking area, meaning people are willing to spend more time outside.
6. Ceiling Fans
(I would consider this one to be specific to Phoenix / Scottsdale Arizona relocation :-)
7. Master Suite Soaker Tubs
Whirlpools are still desirable for many home buyers, Cardis said, but "they clearly went down a notch," in the latest survey. Oversize showers with seating areas are also moving up in popularity.
8. Stone and Brick Exteriors
Stucco and vinyl don't make the cut. (ouch, this one hurts and could aimed specifically at Phoenix / Scottsdale Arizona relocation.)
9. Community Landscaping, With Walking Paths and Playgrounds
Forget about golf courses, swimming pools and clubhouses. Buyers in large planned developments prefer hiking among lush greenery.
10. Two-Car Garages
A given at all levels; three-car garages, in which the third bay is more often then not used for additional storage and not automobiles, is desirable in the move-up and custom categories, Cardis said.
In my opinion, people relocating to Phoenix / Scottsdale -- and those relocating across town -- do tend to have some differences in home preferences. Most of my relocation clients have tended to be a little wealthier because they were corporate executives being relocated. My out of state relocations have not been as concerned about items number two, six, and nine. However, they've usually expressed an interest in numbers one, three, four, and the opposite of nine (because they prefer golf course communities).
Additionally, most prefer a three car garage.
My clients who have relocated across town are almost always interested in items number one, two, six, nine, and ten with little or no care for items four, five, and seven.
There currently 9,200 homes for sale in the city of Phoenix. Real estate deals are around every corner in the Metro area. Many REO properties need some work and we expect that. Some Phoenix real estate deals need lots of work and cause potential buyers to go hmmmm .... And then there's the occasional house that really stinks! Literally.
I took a buyer, who flew in from New Zealand, out to look at REO properties on Wednesday and saw some really good deals for
Phoenix homes for sale. The banks don't like to waste time anymore and most are starting to price properties really aggressively ... enough so that many REO homes are still getting up to 15-20 visits in the first week. I took a buyer, who flew in from New Zealand, out to look at REO properties on Wednesday and saw some really good deals for Phoenix real estate. The banks are getting wise to the game, and most are starting to price really aggressively ... enough so that many REO homes are getting up
to
20 visits in the first 1-2 weeks.
Well, we are 5 homes into our search when we open the door to a really nice looking home in Phoenix. Real estate memories fill my mind, but this was one of those moments that would have been interesting to record -- then watch our reaction on video. I knew something was wrong as soon as I swung open the door. 5 steps into the house and my eyes were beginning to sting. Holy pet urine Batman! This was not the work of a random "tinkler." These pets had the run of the place. I never thought I would
need to stop by Big 5 Sports and buy 2 gas masks before
showing any Phoenix homes for sale.
My client was shocked at the smell. It was almost so thick it could be cut with a knife. But after traveling half way around the world to look at Phoenix real estate she could not be stopped. She proceeded
to do a quick walk-through of the downstairs and headed upstairs. I started to assess her weight and wondered if I would need to carry her out of the house. It has been awhile since I worked out regularly at the gym. My mind started remembering the correct lifting techniques to avoid back injury.
She disappeared up the stairs and I tried to regain my senses. It occurred to me that she might think this yank was a pansy, so I darted up the stairs. That was a mistake because I started to breath harder. My memory was jolted into remembering that warm air rises. If it was possible, the smell was even worse upstairs. Of all the Phoenix real estate I could have been in ... then I lost my train of thought.
Where am I?
Then I remembered. My client came out of the master bedroom and headed for the stairs (thank you God). She didn't appear faint (thank you God). We headed outside and locked up the house. My client actually liked the floor plan and features and commented that removing the carpet would help a lot. She wondered what my thoughts were on the subject.
I actually had thoughts on the subject because, first of all, my sight and mind was returning. I told her I had bought a house with a similar problem at the trustee's sale, which of course was "sight unseen" (and smell un-smelled). I described the process of scrubbing and sealing concrete. I described the process of sanding and sealing 2x4's
that were along the concrete floor. Thankfully she was losing interest in the house and I wouldn't need to return (thank you God)! On to better smelling Phoenix real estate!
Today I received an email from the listing agent wondering what I thought about the house. It was then I decided to write this post. My return email will contain a link to it. That should be satisfactory feedback, don't you think?
A 10-year look at the Phoenix Real Estate market - Foreclosures Impact
Phoenix Foreclosures
I usually break down the Phoenix Foreclosure market on a micro level. But, and as Monty Python used to say, "and now for something entirely different," here's a look at the larger macro picture.
I was curious just how far prices dropped since the boom years. So I went tothe multiple listing service, came up with some criteria, clicked a few buttons, and wallah: a 10-year look at the average price and price per square foot in the Phoenix real estate market. As you can guess, they have been impacted by metro Phoenix foreclosures. This is my disclaimer: this information came directly from the Arizona Regional MLS. Any realtor and can get the same information. I'm not responsible
for any errorsss
in the data. OK, now that that's over with, let's get back
to this post.
Read that chart in this manner: in 2009 there were 92,146 residential sales in the Phoenix area. That total sales volume equaled $15,668,606,573, or an average price of $170,045. Since the average sold home was 1,930 square feet, the average price per square foot in the Phoenix housing market for 2009 was $88.00
Phoenix Foreclosures
Anyone who follows Phoenix real estate will realize the rest of the chart isn't hot breaking news because this information was available on an intuitive basis. In other words, we all knew that house values started an amazing increase in 2004 - 2005 and that many people bathed in the "afterglow" during 2006. But seeing these numbers all in one place -- and in black and white and blue-- is a minorshock to the system. Who doesn't wish they has access to this chart 4-years ago?
However, then the crisis with foreclosures hit Phoenixand home values decreased
to their current state.
You can see a $94.00 drop in the price per square foot from 2006 to 2009. Obviously, that is due to the fact that approximately 55% of all homes sold in 2008 - 2009 were Phoenix foreclosures. More specifically,bank owned homes and short sales. That quantity of metro Phoenix foreclosures is enough to suck the life out of values in any housing market (and we won't name other housing markets in this post -- you know which ones I'm talking about ).
When people ask me "is this the time to buy real estate" I can now honestly say prices are lower than they have been in the last 10 years.
Phoenix Real Estate - Record Setting December, 2009?
Phoenix Real Estate Market- Record Setting December, 2009?
Yes, it's true. We had 7,670 residential sales in the Phoenix real estate market last month, though it wasn't quite the all-time high. December 2004 was the only month in this last decade that had higher sales, and that was by less than 200 homes. Is that an amazing feat for the Phoenix real estate market? Definitely, considering that December is historically one of the lower sales months in the entire year as people turn towards holiday shopping and parties. It's also an impressive
feat considering all of that doom and gloom reporting on the national economy.
Take a look at these numbers from the Arizona Regional MLS.
Additionally, 2009 recorded the third highest residential sales in the last decade. 2004 and 2005 (boom years) were the only two years with higher residential sales in the Phoenix real estate market.
33,014 more homes were sold in 2009 than in 2008, or a 55.7% increase!
There are currently 33,278 homes for sale in Metro Phoenix. Real estate sales are off to a pretty good start in January 2010 after a great December 2009.
Looking for a way to get a down payment gift from a relative? Did you know your parents could take money from their IRA to give you a down payment gift -- and not face any tax penalties?
Many people are buying Phoenix foreclosures for owner occupied homes and using FHA financing because it allows the least amount of money down from the buyer. One of the nicest features about using FHA financing is that it allows gift funds to be given from a relative to the buyer.
So let’s say that you were buying a 100,000 home and you needed the required 3.5% or $3,500 dollars of down payment to qualify -- but you only have $1,000 in your bank account. A relative (and in some cases a non relative) can gift you the money with a statement stating that no repayment is required (called a gift letter) along with some other simple documentation. Then the gift funds can be counted as YOUR funds.
This might save you up to several months/years of saving money to make it to the $3,500 down-payment mark.
One thing many people don’t know is that the IRS allows a parent to pull money out of their IRA “WITHOUT” penalty or taxation in order to gift those funds to a family member’s home. Most people know you can take money out of your IRA for your own home. But many do not know that you can take money out of your account for the use of a parent's, child’s or grandchild’s home -- even if you will not live in that home!
See how nice the government is to NOT tax you on something.
See the IRS publication attached and see for yourself.
Investing in real estate, Phoenix, Scottsdale, Tempe
An announcement from HUD on waiving the FHA guidelines for flipping:
"In an effort to stabilize home values and improve conditions in communities where foreclosure activity is high, HUD Secretary Shaun Donovan today announced a temporary policy change in FHA guidelines that will expand access to FHA mortgage insurance and allow for the quick resale of foreclosed properties. The announcement is part of the Obama administration commitment to addressing foreclosure."
The waiver will take effect on February 1, 2010 and is effective for one year, unless otherwise extended or withdrawn by the FHA Commissioner. To protect FHA borrowers against predatory practices of “flipping” where properties are quickly resold at inflated prices to unsuspecting borrowers, this waiver is limited to those sales meeting the following general conditions:
All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction
In cases in which the sales price of the property is 20 percent or more above the seller’s acquisition cost, the waiver will only apply if the lender meets specific conditions.
The waiver is limited to forward mortgages, and does not apply to the Home Equity Conversion Mortgage (HECM) for purchase program.
Active Phoenix foreclosures exceeded 41% of all homes for sale to begin January 2010. This information is seen in the orange color on the first chart. I've defined Phoenix foreclosures as both bank owned property and real estate short sales, though;short sales are typically considered to be "pre-foreclosure." This is the first time since April 2009 the percentage has exceeded 40%, as the months of May through December 2009 averaged 38%.
The primary reason for the higher percentage is the increase in bank owned properties, as indicated in blue on the second chart. 5,380 bank owned Phoenix foreclosures mark the highest level since May 2009. Is this the beginning of more bank owned properties on the market? It does appear so, as the second chart indicates a four month increase. 2010 marks the year that many of the 5/1 adjustable rate mortgages will have rate increases and many interest only loans will revert to principle and interest loans. Expect Phoenix foreclosures to increase during 2010, but the effect will not be as devastating as was felt in 2007 and 2008 with the 3/1 ARMS. Having said that, the state of the economy in 2010 will probably have a greater effect than adjustable rate mortgages if unemployment continues on its current course.
Another statistic not shown by these charts is the number of days listings are currently on the market. The normal listings (not Phoenix foreclosures) on the market have been there for an average of 183 days. Phoenix foreclosures have been on the market for average of 106 days. The latter number would be smaller if not for the extended sale time of short sales.
The second chart indicates 5,380 bank owned properties (38.9% of all Phoenix foreclosures in red) and 8,445 short sales (61.1% of all Phoenix foreclosures in green). Watch for further increases in 2010 for both categories of Phoenix foreclosures.
Phoenix real estate listings - 7 months of stability - January 2010
The number of listings on the Phoenix real estate market has remained relatively stable over the last 7months. The chart indicates 33,278 active listings on the Phoenix real estate market to begin January 2010, just 319 less than during the beginning of December 2009.
Active listings reached their peak near the middle / end of 2008. The decline began in early 2009, reaching a low point in September with 30,995 active listings on the Phoenix real estate market. The period of relative stability began in July, and the 7 month average since July has equaled approximately 32,000 active listings.
The decrease in listings was due primarily to 2 factors: the moratorium on foreclosures and the number of "normal" sellers that canceled their listings or chose not to put their home on the market.
Here is a snapshot of active listings in some of the more popular cities around the Phoenix real estate market.
City
Active Listings
% of Total
Phoenix
5,485
16.5
Scottsdale
2,473
7.4
Mesa
2,275
6.8
Gilbert
1,323
4.0
Chandler
1,149
3.5
Glendale
1,046
3.1
Queen Creek
733
2.2
Maricopa
585
1.8
Tempe
571
1.7
Ahwatukee
427
1.3
These 10 cities are some of the more popular and well known within the Phoenix real estate market.
Although HR3126 appears to be coming to end, I wrote a commentary on HR 3126, the Consumer Financial Protection Act of 2009, passing the House Financial Services Committee. My original post (hyperlink to the left) brought out some strong feelings from an appraiser named Max. The comment brought out another side to HR3126 that did not get much press: HR3126 put many apprasiers out of work.
The comment from Max about one of my opinions:
[Quoting me] "Personally, I believe a good appraiser does not need to be an expert in a specific geographic area to do his/her job."[end of quote]I disagree, Ron. It's because of people like you we are in this mess! In every city there is an area where 2 homes real close to each other -- and even look the same -- can be valued very differently. Unless you've done the work there and have the experience you are not going grasp all that's needed to get to the correct outcome, doesn't matter how much research you google! HVCC is a monopoly. It only helps the banks because its another big scam they make money off! Do your research, buddy.
My Reply:
Everyone is entitled to their own opinion. I say PART of the reason this industry got in this mess was because of appraisers buckling under the pressure of mortgage brokers and realtors who were “just needing to make this deal work.” That translates into appraisers who over-valued properties. This wouldn’t have happened if appraisers would have stood firm. A good part of the reason that happened was because appraisers knew the mortgage brokers and the realtors personally. Realtors can write contracts all day long, and mortgage brokers can write loans all day long, but nothing happens if the appraisal doesn't at least match the purchase price. In some cases the appraisers were more than happy to accommodate to make a deal work. In some documented cases, they even got paid for it. The HVCC put an end to all this by taking “friendships” out of the picture.
Are you telling me you would decline a job if it was 10-15 miles from your house and you were not an "expert" in that subdivision? If you are, you may have very high integrity, but you may also be a little hungry. Are you telling me you cannot call the listing agent and get the details of a house that was sold -- if you are not an "expert" in that subdivision? Can you not do your research by calling other industry professionals involved with your comparables? Most professionals I know do it all the time. If you are concerned about variances in neighborhood values, you call the professionals involved in the transaction who can explain the difference in values. I've never had a professional not willing to tell me about the upgrades in the house, who it was built by, construction quality, and any other pertinent details.
Keep in mind a key opinion of my article: “I hope any replacement to the HVCC keeps the original intent of the code.” The intent was to keep the appraisal process independent of pressure from mortgage brokers and realtors. I'm aware that HVCC is a monopoly, but I still believe the pure purpose of the code of conduct is correct.
"Until you know how to appraise you have no way of knowing what is best related to this issue. Yes, this rules help some (banks) and screws others like borrowers, appraisers and others! First of all, all they needed to do was ENFORCE the rules and NOBODY did that. I think that would be a great place to start! Second, in order to change something you got to get the top professionals who are ethical in each field and together come up with a new solution and not just decide behind closed doors like the moron Cuomo did, to give his friends in the banking industry another revenue to screw everyone! All they did was kill a lot of small business and gave it the big banks basically! You are talking about putting somebody in the middle, how is the management company in a better position to order appraisals when they are owned by the banks?? See a little conflict of interest there? ENFORCE the rules and hold everyone accountable, should have been a good way to start! Instead they screwed the hard working average Joe and closed down a lot of small businesses, nice way to go!"
Summary:
There's always more than one side to a story. Appraisers, many of whom were innocent of any wrongdoings, went out of business because of HR3126. Consumers -- who for the most part only knew what their realtor told them about home values -- had an added level of protection against overpriced homes. And of course, it was now much more difficult for people who actually wanted to perpetrate loan fraud to get away with it. However, as Max pointed out, over regulating an industry can cause financial hardship with the average small business.
The Phoenix foreclosures "sales %" dropped to a 12 month low in November 2009. 60.2% of all residential sales were foreclosure type sales. Phoenix foreclosures are defined as bank owned (REO, or real estate owned) properties and short sales.
That chart indicates that 7,586 residential properties were sold in the Phoenix real estate market in November 2009. 3,018 (or 39.8%) were normal sales while 4,568 (60.2%) were Phoenix foreclosures. The last time the percentage was near 60% was last December 2008. The peak in the sale of Phoenix foreclosures was 75.9% in March 2009. They have continued on a slow and consistent decline since that time.
Although the actual number of sales for Phoenix foreclosures follows the same basic trend as the %, the highest number of foreclosure sales was in May 2009. The number of foreclosure sales has decreased for two primary reasons: 1.) there are less foreclosures for sale and 2.) the price gap between normal sales and Phoenix foreclosures has shrunk, making normal sales more attractive than they have been in a long time.
Here's a look at how several cities in the Phoenix real estate market compared to the 60.2% average for all Phoenix foreclosures :
Phoenix real estate market - sales in November 2009
Phoenix real estate market closes 7,586 sales in November 2009
The 7,586 residential sales recorded in November 2009 are 559 sales less than those recorded in October 2009. This reduction in sales is considered both normal and cyclical in the Phoenix real estate market. Sales peaked in June 2009 when 9,358 home sales were recorded.
The chart indicates a steady increase in home sales beginning in February and lasting until the peak in June. The steady decrease began in July and continues to date. Although not indicated on the chart, the year over year (YOY) sales in the Phoenix real estate market have now increased for two consecutive years. Sales in October 2007 were 3, 421 and sales in October 2008 were 5,267.
The Town of Maricopa was the only municipality in the Phoenix real estate market that was contrary to the decline in home sales. The Town of Maricopa experienced a slight increase in sales from 224 home sales in October to 235 homes sales and November 2009, a 5% increase.
Around the Phoenix real estate market, Scottsdale was the only other city with home sales consistent with October 2009. Scottsdale experienced a decrease of just under 2%.
I've been on other projects and slow to update these reports. Merry Christmas to all!
Phoenix real estate prices continue to rise - December 2009
Yes, believe it or not Phoenix real estate prices have continued on an eight month increase. The chart you are looking at below indicates the appreciation (and depreciation) rates for Phoenix real estate over the two year period from November 2007 through November 2009.
The chart assumes a baseline price per square foot in November 2007, then shows how the price per square foot has declined for Phoenix real estate until a bottom was hit in March 2009. Prices for Phoenix real estate have continued to increase over the last eight months since the bottom in March of 2009.
This Phoenix real estate chart was obtained courtesy of the Cromford Report. They are experts in the Phoenix real estate market and devote a considerable amount of time to producing accurate reports. Their reports on the Phoenix real estate market are every bit as accurate as the Case-Schiller index, but much more timely.
The data I personally keep from my own research on the Phoenix real estate market coincides with this data. My data shows that Phoenix real estate appears to have bottomed out in March 2009 at a price per square foot of $66.00 for residential resale homes. The current price per square foot for Phoenix real estate is $84.00 per square foot according to my statistics.
My statistics for Phoenix real estate are based on single-family residences, townhomes, and patio homes that are over 1,000 square feet and sell for less than one million dollars. I believe this helps to "level out" the data by removing the "extremely low" and "extremely high" prices for Phoenix real estate.
There have been pessimistic reports about a dreaded "double dip" of depreciation for Phoenix real estate. In other words, the current price of Phoenix real estate may go downwards again. The operators of the Cromford report had not found any signs the indicate that a double dip is imminent.
Active Phoenix Arizona foreclosures increased to begin December 2009. Foreclosures are defined as both bank owned properties and real estate short sales. The increase was 803 properties in the Phoenix real estate market from November 2009.
The increase has been mounting since July 2009 when the total foreclosure-type properties were 11,868. You can also see by the chart that July 2009 had one of the lowest totals of Phoenix Arizona foreclosures in the last 18 months. The total increase in foreclosures since July has been 1,474 (seen in yellow). However, the percentage of foreclosures in the Phoenix, Arizona area compared to total listings has remained at the 38% level over the last six months (seen in red).
The physical condition of many Phoenix Arizona foreclosures has been improving over the last six months. In many cases the banks have been more liberal in spending some money to improve the looks and functionality of their foreclosures.
You can also see by that chart is that the increase in Phoenix Arizona foreclosures has been similar to the increase in the total active listings. In other words, the increase in listings is due primarily to the increase in foreclosure listings - not any increase in "normal" listings.
The second chart illustrates a breakdown of foreclosures in the Phoenix Arizona real estate market. The breakdown is between bank owned properties, also known as REO property, and real estate short sales. Phoenix foreclosure listings totaled 13,342 to begin December 2009. 4,816, or 36.1% are bank owned properties. 8,526 are real estate short sales, or 63.9% of all Phoenix area of foreclosure listings.
Real estate short sales continued to gain popularity in the Phoenix, Arizona area. Click here to search Phoenix Arizona foreclosures.
Residential listings increased for the third consecutive month in the Phoenix Real Estate Market to begin December 2009. That translates into more homes for sale.
The increase in homes for sale began in October 1st, 2009 and has continued for the last three months (in pink). The 3-month total increase in the number of homes for sale is 1,482 -- or 4.8% from October 1, 2009 -- from when the Phoenix real estate market was at two-year low in the number of residential homes for sale.
The demand for homes in the Phoenix real estate market has been particularly strong in 2009. The demand is due in part to the low prices of foreclosure homes for sale, low interest rates, and the home buyer tax credit. According to CromfordReport.com (who does extensive reporting on the Phoenix real estate market and homes for sale):
The big news in our pending home sales situation is the dramatic contrast with the national picture. The NAR today released the news that pending listings for home sales were 19.8% higher than a year ago. For Greater Phoenix real estate the equivalent increase is currently 102%. In fact a few days ago on October 30 we set an all time record of 107%. Demand is clearly at an exceptional level for real estate.
The increase in the number of homes for sale is a normal seasonal pattern in the Phoenix real estate market and does not indicate a significant change. If normal annual trends continue, the active listing count will peak in November and then decline toward the end of the year. I will post about November real estate sales in the next few days.
5,174 Metro Phoenix foreclosures sold in October 2009
The asking price of those Phoenix foreclosures was an average of $143,000
The average selling price was $142,800
The reason buyers couldn't obtain them for LESS than asking price: the supply of Phoenix foreclosures dwindled by 50% over the last six months. There were almost 22,000 Metro Phoenix foreclosures on the market to begin 2009. There are currently fewer than 12,000 Phoenix foreclosures on the market. However, the demand for Phoenix foreclosures during the same period (expressed as sales) has remained relatively constant at an average of 6,000 sales per month. Phoenix foreclosures are defined as bank owned properties and short sales.
Metro Phoenix foreclosures have accounted for an average of 70% of total sales since the beginning of 2009. Those sales had been driving down the price of homes until April-May of 2009. The decreased supply of Phoenix foreclosures caused multiple offers and even more bidding for Metro Phoenix foreclosures. Banks learned that they no longer had to lower asking prices because of demand. This has led to Metro Phoenix foreclosures selling 5% above asking price in October 2009.
If you are considering Metro Phoenix foreclosures did you miss the “bottom” of the market? That’s the million-dollar question. At first glance you might say yes because prices for Phoenix foreclosures have increased over the last four months. However, many industry sources believe there will be many more Metro Phoenix foreclosures on the market to finish out 2009.
The big question is: how will the banks handle the accumulated inventory of Phoenix foreclosures? My sources claim many banks are holding inventory and releasing them at a slower pace to keep up demand for Phoenix foreclosures. Additionally, I know a property management company that just received a contract to rent 200 Metro Phoenix foreclosures. This particular bank has decided to turn the huge losses incurred by selling Phoenix foreclosures into cash flow. Their hope is to wait until the market rebounds.
Prices at 10 year lows make this a great time to consider Metro Phoenix foreclosures.
Could buying Metro Phoenix foreclosures get easier? 15 day "First Look" program
by Craig Bohall, Academy Mortgage, craig@myazmp.com
Simple answer: HECK YES. If we could cut out the government's addictive overdosing of regulations that have been piled on like a 7 layer bean dip ... but since that is not going to happen any time soon we can take joy in small victories like this 15 day "First Look" program.
The government-run Fannie Mae has come out recently with a plan to keep investors away from their foreclosures for 15 days and allow the average Joe/Jane a first look to get in their offers before investors. A reporter from the AZ Republic (serving the Phoenix area) had this to say regarding this announcement...
"Arizona home buyers trying to tap federal funds to help them purchase foreclosure homes might find it a little easier now. Mortgage giant Fannie Mae recently launched a program called “First Look” that bars investors for bidding on its foreclosures for the first 15 days they go on the market. In metropolitan Phoenix, first-time buyers typically lose out to investors on the best foreclosure homes. "
So is this good or bad? Well depends whether you are Joe Average or Jane investor buying Phoenix foreclosures doesn't it? On the one hand poor Joe Average was previously getting beat out on the 60K home in Phoenix when he offered 62K. That's because a cash investor was there who could close in 48 hours while the Joe Average will need 30 days to close through his lender. On the other hand, without Jane investor helping to stop prices from falling and even create some bidding wars for Phoenix foreclosures -- we would be left to the pricing "mud-slide" we saw for months on end!
On the one hand, Jane investor can buy 20 Phoenix foreclosures and Joe Average can only buy one foreclosure, so who is helping the economy and helping to reduce inventory more? But we Americans sooooo love to find something that seems unfair and get the government to regulate it.
But on the other hand, if the government is going to give federal funds ONLY to Joe Averages (no investors) they should have some say in letting Joe Average "to the dance" 15 days before investors swarm in on Phoenix foreclosures with a first look
Yet, on the other hand, if they let free market principles work the highest bidder gets the foreclosures. Maybe the investor wants a great deal and bids 60K while Joe Average out bids him with 65K or 69K. Would that make our housing market rebound and get normal sellers back in the market sooner? Will that allow the market to run on it's own again instead of this "propping up" that we have now.
However, on the other hand... I am out of hands. What do you think about the 15 day "First Look" program and it effect on Phoenix foreclosures?
2009 to be 3rd best year in last decade for Phoenix homes for sale
2009 is in position to be the 3rd best year in last decade for Phoenix homes for sale. The housing market forecast in the Phoenix area is looking very promising going into 2010. As of November 12, over 79,500 residential home sales have been completed in the metropolitan Phoenix area. Homes sales should easily reach 90,000 by the end of December. The only years that were better were the boom years of 2004 and 2005.
Housing sales in 2007 and 2008 averaged 56,754 residential homes. 2009 home sales will be an estimated 58% higher than in the two previous years. We can clearly signal the end of the buyer's market in the Phoenix area.
There were plenty of doomsayers to begin this year. The Phoenix housing market forecast was uncertain and many home buyers debated what to do. Continuing lower prices and the first-time home buyers tax credit helped people to a decision. It was also very helpful that mortgage interest rates stayed very low.
Phoenix Area Home Sales Increase Slightly in October 2009
Phoenix Area Home Sales Increase Slightly in October 2009
The increase was slight, but October 2009 home sales in Phoenix surpassed those of September by about 200 sales. These numbers continue to be evidence of confidence from buyers looking for homes in the Phoenix area. The confidence can be attributed lower housing prices and the first-time home buyers credit. It also helps that the number of active listings in Phoenix has remained stable thereby keeping the balance between a "buyers" and "sellers" market in check.
This is great news for the housing market in Phoenix. Increased sales always stimulates the overall economy. People who have "gotten off the fence" and contributed to Phoenix home sales are making this the 3rd best sales year in the last decade.
As seen in the charts, 8,145 homes sold in October of 2009. Only four months had higher sales in the Phoenix area. It is also important to note that in the previous two years home sales were already tapering off by October. However, Phoenix area sales over the last three months have been stable.
if you are comfortable with housing prices, president Obama's policies, and interest rates -- this may be your time to consider homes for sale in the Phoenix area.
The $8000 / $6500 Home Buyer Tax Credit is alive and well. As anticipated, President Obama signed the $8,000 first-time home buyer tax credit extension into law on Friday. You can now collect the credit if your home purchase is under contract by April 30, 2010 and is complete by June 30, 2010. The good news for current owners: The extension also offers a tax credit for people who are purchasing a new residence, but aren't first-time homeowners.
Tax Credit is Refundable
A refundable credit means that if the amount of income taxes you owe is less than the credit amount you qualify for, the government will send you a check for the difference.
For example:
A first-time home buyer who qualifies for the full $8,000 credit who owes $4,000 in federal income taxes would pay nothing to the IRS and receive a $4,000 payment from the government
A first-time home buyer who was to receive a $3,000 refund would receive $11,000 ($3,000 plus the $8,000 first-time homebuyer tax credit)
A repeat buyer who owes $4,000 would pay nothing to the IRS and receive $2,500 back from the government
A repeat buyer who was due to get a $2,000 refund would get $8,500 ($2,000 plus the $6,500 repeat buyer tax credit)
All qualified homebuyers can take the tax credit on their 2009 or 2010 income tax return.
Payback Provisions
The tax credit is a true credit. It does not have to be repaid unless the home owner sells or stops using the home as their principal residence within three years after the purchase.
Summary Details of TAX CREDIT:
Under contract by April 30, 2010
Close escrow by June 30, 2010
$8,000 for 1st time buyers
$6,500 for current homeowners who have lived in their house 5 of the past 8 years
Use these questions to determine the expertise of Arizona Mortgage Lenders. The largest financial transaction of your life is too important to risk with someone or a company who is not capable of advising you properly on the best options for your specific mortgage loan situation. But how can you tell?
Here are four simple questions your Arizona Mortgage Company absolutely must be able to answer correctly. If they do not know the answers, run -- don't walk -- to a lender who does.
What are interest rates based on?
The only correct answer is Mortgage Backed Securities or Mortgage Bonds, NOT the 10-year Treasury Note. The 10-year Treasury Note sometimes trends in the same direction as Mortgage Bonds. It can also move in completely opposite directions. DO NOT work with Arizona lenders who have their eyes on the wrong indicators.
What is the next Economic Report or event that could cause interest rate movement?
Professional lenders will have this information at their fingertips. Ask about a current calendar of weekly economic reports and events that may cause rates to fluctuate.
When Bernacke (formerly Greenspan) and the Fed “change rates”, what does this mean...
...and what impact does this have on home loan interest rates? The answer may surprise you. When the Fed makes a move, they are changing a rate called the “Fed Funds Rate”. This is a very short-term rate that impacts credit cards, credit lines, auto loans and the like. Interest rates most often will actually move in the opposite direction as the Fed change, due to the dynamics within the financial markets. For more information and an explanation on how this affects your lending situation, just give us a call.
What is happening in the market today and what do you see in the near future?
If a lender cannot explain how Mortgage Bonds and interest rates are moving at the present time, as well as
what is coming up in the near future, you are likely NOT talking to a professional lender or lending company. Be smart... ask questions… get answers!
This is one of the largest and most important financial transactions you will ever make. You may take this voyage only two - five times your entire life. Professional mortgage lenders cruise these waters every single day. It’s your home and your future in Arizona. Place them in the hands of a professional loan officer and Arizona Mortgage Company.
Thanks to my good friend and trusted lender, Craig Bohall, for helping to put these words onto virtual paper.
Phoenix foreclosures snapshot to begin November 2009
Phoenix Foreclosures Snapshot - November 2009
Phoenix foreclosures comprise 30.8% of all real estate listings in the metropolitan area. Foreclosure listings are comprised of REO property (bank owned) and short sales. REO property used to be the majority of active listings in the foreclosure arena. However, bank owned properties have been on a decline for most of 2009. They are being replaced by short sales because more distressed homeowners are seeing short sales as a better alternative to foreclosure.
The chart indicates 12,539 foreclosure listings in the Phoenix real estate market to begin November 2009. Since there are 32,351 total listings in the Phoenix market (seen in my last post), foreclosure listings make up almost 39% of all listings in the area. Of that 39%, 35.2% (4,417) are REO listings and 64.8% (8,122) are short sales. There are several reasons for the decline in REO property listings over the last year:
the federally mandated foreclosure moratorium
banks for selling more properties in bulk to large-scale investors
banks are taking chunks of foreclosure properties and turning them into rentals
more properties are being sold at public-type auctions
Homeowners are increasingly seeing short sales as a viable alternative to foreclosure. Although the short sale process can take between three and five months to complete, buyers in the Phoenix area real estate market are paying much more attention to short sales. The percentage of completed short sale transactions continues to grow each month in the Phoenix area.
Days on Market for Phoenix Foreclosures
Foreclosure listings have been on the market for an average of 80 days less than their counterparts -- "normal" listings -- during 2009. The second chart indicates that current foreclosure-type listings have been on the market for 105 days, while normal listings have been on the market for 182 days. The obvious reason is the difference in price between two categories of listings. REO property and short sales are always priced much lower than normal sales making them much more attractive to home buyers.
It can also be seen by the chart that overall days on the market has been steadily trending downwards for Phoenix area foreclosures. However, if we were to isolate REO properties we would find that the average sold home would be on the market for less than 60 days. The longer selling cycle for short sales is what keeps the foreclosure "days on the market" higher.
Homes for sale in Phoenix increase slightly to begin November 2009
Homes for sale in Phoenix increase slightly to begin November 2009
MLS listings in the Phoenix area were up slightly for the second consecutive month to begin November 2009 (highlighted in orange). This is a contrast to the previous nine months when active homes on the market dropped a whopping 23,500 properties from 54,538 in December 2008 to 30,995 in September 2009 (highlighted in yellow). There are currently 32,351 active residential listings in the Phoenix area real estate market. This includes both "normal" and foreclosure homes for sale.
This slight increase in homes for sale will do little to impact the demand in our current real estate market, especially for foreclosures. The Phoenix real estate market has averaged about 8,700 home sales in the six-month period from April through September 2009. Phoenix home sales for October are expected to be right around 8,300 properties. Much of this demand in Phoenix is due to affordable home pricing and the $8,000 tax credit. The $8,000 tax credit is currently set to expire at the end of this month, but the federal government is evaluating extending it into 2010.
The number of Metro Phoenix foreclosures increased to begin November 2009. The total increase was about 550 homes. This includes both real estate short sales and REO property (bank owned homes). Look for the number of foreclosures to increase further as short sales continue to be increasingly popular and banks have inventory they have yet to release. The chart indicates approximately 38% of all active homes for sale over the last six months have consisted of foreclosure-properties (highlighted in blue).
My next post will look deeper into the foreclosure market and compare the number of short sales versus the number of bank owned properties currently for sale in the Phoenix real estate market.
Maricopa homes for sale in Tortosa - 2787 sq ft Short Sale
Welcome to another in a series of video tours brought to you by ValleyWideHomes.com and Metro Phoenix Homes LLC. Today's tour focuses on Maricopa Homes for Sale and brings us to the subdivision of Tortosa in the Town of Maricopa. Maricopa is approximately 30 miles south of Phoenix Sky Harbor Airport, but only 20 miles south of the Phoenix Township of Ahwatukee, Arizona.
Maricopa rapidly changed from a rich agricultural area to vibrant and exciting new city with master planned communities. On average, there were just under 700 active homes for sale in Maricopa during each month of 2009. Maricopa calls itself "a city with something for everyone and opportunities for all where a handshake is still honored, community involvement is welcomed, and a small town feel is ever present."
The subdivision of Tortosa is heralded by a dramatic entryway as well as several common areas with large and expansive views. Today we will be visiting a home for sale in the subdivision of Tortosa that first became available in November of 2009.
Built by Shea Homes in 2006, this home sits on an a corner lot that's just over one quarter acre. If you're interested in more information about this Maricopa home for sale -- contact information will be provided at the end of the video as well as in this blog. This house has 2,787 square feet with three bedrooms three full bathrooms a living room, family room, a three-way fireplace, dining room and a two-car garage. But there's MORE. Watch the video and learn about the three bonus rooms. Let's have a look at this Maricopa home for sale in Tortosa...
"How can I improve my credit score fast"- a common question
"How can I improve my credit score fast?" -- Arizona mortgage company helps provide an answer
This is part five of a five-part series on the mortgage lending process. In the first 4 parts of this series Arizona loan officer Craig A. Bohall took us on a journey that began with an introduction to the mortgage process, followed by "thinking like an underwriter" to get your loan approved, the "4 C's" of mortgage lending (with a 5th "bonus C"), the important " when do I lock my interest rate," and finally In part 5 Craig will talk about what's on many people's minds: "how can I improve my credit score fast?"
Credit repair is not something that can be accomplished overnight. If you are applying for a loan from an Arizona mortgage company there are certain things you should understand. Craig will take you on a video tour and provide tips on improving your credit to help you get a mortgage loan.
Credit repair will help you in the mortgage lending process. Credit is made up of five primary categories:
payment history
amounts owed
blanks of credit
new versus old credit
types of credit
This video will help you start the process of repairing your credit that you can purchase a home.
An introduction from the first video in the series:
My primary lender, Craig Bohall with Academy Mortgage, and I decided it was time to produce a series on the mortgage lending process. There are many mortgage companies and lenders on the scene, and it's important for buyers (especially first-time buyers) to understand the lending process.
We used Craig's lending experience and my video camera / production knowledge to produce a five-part series on the lending process. Craig has been involved in the real estate industry for 15 years, but he specifically has been a loan officer for the past eight years. Craig has worked for several Arizona mortgage companies and has found a home at Academy Mortgage. I would highly recommend Craig if you are looking for a real estate loan in the state of Arizona. Picking the wrong mortgage company can cause a lot of grief.
Still wondering "how can I improve my credit score fast?"
Am I wasting my time if I accept this Chase short sale?
The seller has a first and second mortgage with Chase. Both mortgages are purchase money mortgages. The would-be sellers tried doing a loan modification over the summer but they gave up because the result of the loan modification was a "higher" monthly payment. Go figure that one. My potential clients did not make their July 1st payment after the loan modification failed. However, they waited until one week ago to ask me to short sale their house. Take note of the fact that the loan is 149 days past due.
I received authorization to talk to Chase about the potential short sale yesterday. Fortunately, and because the sellers tried a loan modification, Chase never sent a notice of default and there are no foreclosure proceedings in process. The first mortgage would not talk to me about the second mortgage and sent me on a long hunt to find the correct number to talk to the second mortgage department. Here is what I found out after six phone calls/transfers:
the "home equity collections department" handles the second mortgage until it is 119 days past due
the second mortgage was still residing in the home equity collections department because of the attempted loan modification
my phone call brought attention to the fact that the loan modification process is over and my potential clients are simply delinquent
the home equity collections department will no longer talk to me because the delinquent loan is past the 119 day marker
they said the account was being sent to the "recovery" department (oh oh) as of November 1
I was able to talk to the recovery department about the prospect of a short sale. The recovery department, which of course is not nearly as much fun as the collections department, was much more serious about the matter. Here I was told that the focus of this department was to recover as much of the $52,000 balance as possible. I was told they would start out by asking for between 50 to 60% of the balance to approve the short sale.
I don't know my sellers very well, but I do know that proposition doesn't stand a chance. Faced with such a large amount, my sellers would forego the short sale process and let the property go into foreclosure. After reminding the person in the recovery department that Arizona is a non-deficiency state -- and that there was no real benefit to Chase in letting this go to foreclosure -- the person on the other side of the phone gave me these options:
convince my potential client to bring some money to the table
Hope that the first mortgage (held by a different department of Chase) would do more than allocate the standard $3000 to the second mortgage; this "recovery department" person suggested that perhaps the first mortgage Department of Chase could allocate $20,000 -- $25,000 to the second mortgage Department to make a short sale work
I reminded this person that no one wanted to waste their time by taking a potential buyer through the short sale process and then finding out that the second mortgage Department (excuse me -- the recovery department) would nix the sale. I also reminded him that both departments were in the same company and that he was simply talking about an exercise in accounting.
This recovery department person seemed to be unfazed. He suggested that I take the short sale listing, find a buyer, present the contract and short sale package to Chase and "see what happens."
I really don't consider this to be "profound" or worthwhile advice.
Anyone have any experience with this situation and Chase (JP Morgan)?
According to the Wall Street Journal, the IRS is reportedly examining more than 100,000 suspicious claims for the $8000 dollar tax credit and is investigating 167 "criminal schemes" involving the credit. IRS officials declined last week to describe the suspected schemes or provide additional details. However, they did say they have identified the different types of potential fraud and matched them against their compliance program.
We could speculate about how people are trying to commit fraud with the $8000 tax credit. Perhaps they are modifying closing statements, commonly known as HUD-1's to make it appear the house was purchased in the correct tax year. Perhaps they are taking incorrect tax advice from their accountants. Perhaps people are modifying HUD-1's to make it appear that they bought a house -- when in fact they did not. Regardless, the IRS taking it very seriously.
The IRS says it has received more than one million claims for the $8000 tax credit. Housing industry experts estimate the credit helped to generate at least 350,000 additional home sales. The $8000 tax credit to set to expire on November 30, 2009 but leaders in the housing industry are lobbying Congress to extend it.
It would seem that widespread abuse would be relatively easy because of the loose standards for claiming the credit. In other words, the IRS never set anything in place with title and escrow companies to document the tax credit at time of sale. Free money has had a history of attracting people with dishonest intent, and $8,000 is a good deal of money. This is just the kind of trouble that will delay or eliminate the proposed extension of the program, or even it's conversion to the much talked about "$15,000 tax credit." It's always sad when dishonest people potentially destroy a good program they can benefit the masses.
On the other hand, does our country really need an extension of the $8000 credit, or even a new $15,000 tax credit? Has our country, which already has enough debt to choke 20 medium-sized countries, need to be giving out more money it doesn't have? It does seem that many citizens have developed an attitude of "entitlement" and expect the government to just keep giving out more and more money. But I digress...
According to the IRS website , the IRS successfully prosecuted its first fraudulent tax credit case in July 2009. A Jacksonville, Fla. tax preparer, James Otto Price III, pled guilty to falsely claiming the $8000 tax credit on a client’s federal tax return. Price faces the possibility of up to three years in jail, a fine of as much as $250,000, or both.
This is part four of a five-part series on the mortgage lending process to educate and inspire potential homebuyers. In the first three parts of this series Arizona mortgage broker (turned banker) Craig A. Bohall took us on a journey that began with an introduction to the mortgage process, followed by "thinking like an underwriter" to get your loan approved, and finally the "4 C's" of mortgage lending (with a 5th "bonus C"). In part 4 Craig will talk about the most important topic to date: when to lock your interest rate on your Arizona mortgage loan.
Do you want to appear like a knowledgeable consumer? What questions should you ask when applying for Arizona mortgage loan? What questions make you look like a "novice" when speaking to a mortgage broker? Here is a sample of the wrong questions to ask when interviewing a potential mortgage company:
what are the interests rates today?
what kind of interest-rate can your company give me?
Here is the right question to ask:
what are the markets doing today?
Watch this video and learn what your mortgage broker should know about interest rates. Beware of any loan officer in an Arizona mortgage company who is not aware of (or can not talk about) jobless claims, the consumer confidence number, unemployment numbers, or when the Federal Reserve Chairman and Board of Governors are meeting.
Watch this video and learn the basics about the markets and economic indicators that affect interest rates. But don't be concerned -- you don't have to be an expert mortgage broker to get the best interest rates. You simply simply need to find an expert in the mortgage lending process who will guide you through the intricacies of obtaining a mortgage loan and locking your interest rate at the correct time.
An introduction from the first video in the series:
My primary lender, Craig Bohall with Academy Mortgage, and I decided it was time to produce a series on the mortgage lending process. There are many mortgage companies and lenders on the scene, and it's important for buyers (especially first-time buyers) to understand the lending process.
We used Craig's lending experience and my video camera / production knowledge to produce a five-part series on the lending process. Craig has been involved in the real estate industry for 15 years, but he specifically has been a loan officer for the past eight years. Craig has worked for several Arizona mortgage companies and has found a home at Academy Mortgage. I would highly recommend Craig if you are looking for a real estate loan in the state of Arizona. Picking the wrong mortgage company can cause a lot of grief.
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The 7,586 residential sales recorded in November 2009 are 559 sales less than those recorded in October 2009. This reduction in sales is considered both normal and cyclical in the Phoenix real estate market. Sales peaked in June 2009 when 9,358 home sales were recorded.
The increase has been mounting since July 2009 when the total foreclosure-type properties were 11,868. You can also see by the chart that July 2009 had one of the lowest totals of Phoenix Arizona foreclosures in the last 18 months. The total increase in foreclosures since July has been 1,474 (seen in yellow). However, the percentage of foreclosures in the Phoenix, Arizona area compared to total listings has remained at the 38% level over the last six months (seen in red).
The second chart illustrates a breakdown of foreclosures in the Phoenix Arizona real estate market. The breakdown is between bank owned properties, also known as REO property, and real estate short sales. Phoenix foreclosure listings totaled 13,342 to begin December 2009. 4,816, or 36.1% are bank owned properties. 8,526 are real estate short sales, or 63.9% of all Phoenix area of foreclosure listings. 
The chart indicates 12,539 foreclosure listings in the Phoenix real estate market to begin November 2009. Since there are 
Foreclosure listings have been on the market for an average of 80 days less than their counterparts -- "normal" listings -- during 2009. The second chart indicates that current foreclosure-type listings have been on the market for 105 days, while normal listings have been on the market for 182 days. The obvious reason is the difference in price between two categories of listings. REO property and short sales are always priced much lower than normal sales making them much more attractive to home buyers.
