NEW HELP FOR HOMEOWNERS UNDERWATER

Just yesterday the Federal Housing Finance Agency (FHFA) announced that they would be making changes to a govement program that could help homeowners who are underwater with their mortgages.  With mortgage rates so low lately, many homeowners are trying to refinance but are unable to because their home will not appraise at an appropriate price.  This is unfortunate for them because the change in market is no fault of their own however they are penalized for it.

The program FHFA is proposing to change is the Home Affordable Refinance Program (HARP).  Currently, this program aims to help borrowers who are in this specific situation referred to before, wanting to refinance but running into problems because their home value has dropped.  Because FHFA has seen so many instances where HARP could have helped homeowners but they were unable to meet the guidelines, FHFA is going to be changing some of those guidelines.

A couple of the items they have agreed to change are the cap that disqualifies any homeowners who mortgage exceeds 125% of the property value and appraisal requirements.  Previously, if a homeowners mortgage exceeded 125% of the property value that homeowner would not be eligeable to participate in the program.  They have not stated an exact change, but FHFA will be altering that cap so more homeowners can participate.  Also, in many circumstances they have stated they may not even require an appraisal.

So, what does this mean for homeowners underwater??  Well, just like many of the other goverment programs that have been rolled out to help the housing market, only time will tell how affective these changes may be.  The majority of the other programs has failed to meet expectations or keep promises made in the beginning.

The main homeowner this will help is those who are underwater on their home but do not financially qualify for a short sale.  The HARP program should be able to help those homeowners adjust their mortgage to the current housing market state and then be in a better position to sell in the future.  This, in turn, then should lower the number of short sale as we move into the next few years.

Researches say these new guidelines could help an additional 1 million homeowners of the 11 million who are underwater.  Yes, you read that right, only 1 million of 11 million.  With that being said, it may help

CAN YOU BELIEVE THESE MORTGAGE RATES!?!

As of today the average 30-year fixed mortgage rate dropped BELOW 4% to
3.94% for the FIRST TIME EVER! Can you believe it!?!

The state of Arizona’s real estate market plus these extraordinarily low mortgage rates creates a prime opportunity for buyers & investors. With so many Phoenix short sales out there as well as bank owned properties, it is fairly easy to find a well priced property to purchase.

If you are looking to buy for yourself this is a great time to find a home
you can build equity in. Purchasing a Phoenix short sale right now almost guarantees you are buying a home below the typical market value. Combine that with these low mortgage rates and you are saving even more money! With these circumstances, whether you plan to sell 5 years or 20 years down the road, you should have substantial equity built up in your property.

On the other hand, as an investor, you have even more opportunity. With the
rental market being in such high demand right now it is a great time for
investors who can hold property to purchase rental homes. As an investor, if
you purchase a Phoenix short sale at the low prices currently being offer and obtain this low mortgage rate your monthly mortgage payment could be extremely low. With the ability to secure good renters at great rent rates it is not uncommon for many investors to realize a 15%+ return on their money! This type of return is UNHEARD of in many other markets right now!

Many people are afraid to take a risk in this market because they feel it is
still unstable but as the facts show now is really the time to capitalize on
this market! For more information on how YOU can take advantage of these
opportunities please contact us for an individualized plan!

BANK OWNED INVENTORY IN PHOENIX, AZ

As the national real estate market continuously evolves the Phoenix real estate market is no different.  One of the key deciding factors of the state of the market is the number of distressed properties out there.  Short sales continue to remain very prevalent in the Phoenix market but we have seen slight changes in the inventory of bank owned homes.  The fluctuation in bank owned listings on the market has caused the fluctuation in the stability of our real estate market.  Those of us working in the industry have heard about a “shadow inventory” of homes the banks are holding.  This refers to a back-log of listings that they are holding in their possession and waiting to put out into the open market.  Below is an image showing an estimate of the amount of supply the banks in each state have in their “shadow inventory”:

 

 

As you can see, the months supply vary widely from state to state but Arizona specifically is showing as one of the lowest with a 9 months supply of “shadow inventory”.  Our low number is most likely the result of the high demand for bank owned properties here in Phoenix.  This number is good news for us because the more in demand a product is the more it drives prices up.  We have already seen a slight increase in listing prices in the valley and hope to see the market continue to improve.

THE LATEST PHOENIX SHORT SALES!

Check out our latest short sales in the Phoenix Valley:

http://26219npasotrail.epropertysites.com/

http://10735ecaribbeanln.epropertysites.com/

http://7351weugieave.epropertysites.com/

http://30448n73rdst.epropertysites.com/

We specialize in short sales in Phoenix but also have multiple REO listings.  Contact us for more information on these properties or any of our 40+ other listings!

RENTAL VACANCY RATES AT 6-YEAR LOW!

As more and more homeowners are being forced to go through a short sale or foreclosure the demand for rentals is getting higher and higher.  This has caused vacancy rates to drop to a 6 YEAR low! Low vacancy rates in turn means higher rent rates.

This creates the ultimate equasion for investors.  With home prices and mortgage rates so low right now PLUS rental rates climbing higher and higher there is a lot of room for a high return on investors money.

If you have been thinking of investing in real estate NOW is the time to do so! Contact us for more information of how you could take advantage of this market.  We can also help you start your personalized search and send you a sample investment pro forma!

LOWEST MORTGAGE RATES IN YEARS!

With the economy continuously fluctuating, mortgage rates are dropping lower and lower.  The national average for a 30-year fixed-rate loan is currently at 4.32%.  We just had a client locked in for a 30-year FHA loan at 3.75%! Can you believe it?! 3.75%!!!

As more and more buyers come out into the market home prices are slowing starting to rise and more and more homes are selling at list price.  NOW IS THE TIME TO TAKE ADVANTAGE OF THIS MARKET BEFORE THINGS CHANGE! With the ability to get a great price on a property PLUS an incredibly low mortgage rate there is no better time to buy!  Talk about an INVESTORS DREAM!

Contact us today to learn more about your options and the opportunities we could find for you!

SHORT SALES MADE EASY!

No, you did not read this wrong.  Yes, we did use the word “easy” in the same sentence with “Short Sales”.  Finally, borrowers looking for an option to sell their house for less than what is owed have an timely option to negotiate a release of their mortgage debt on a short sale in literally a matter of several weeks… not months!  Wachovia rolled out this program to make the process simple, quick, and easy, just the opposite of most other short sale programs.  Many times, the only documentation that you have to disclose and provide to your lender is just your hardship letter which you write in your own words describing your current hardship to your lender.  In addition, in most cases, if you are still current on your mortgage and want to minimize the impact on your credit, we can complete your short sale while you remain current on your mortgage!

 

How it works:  First, you must have a loan that qualifies for this program which nearly all former World Loan Savings and Wachovia loans do.  Next, we establish a list price for the property through an appraisal process (at no cost to you).  We then list and market the property to procure an offer just as we would for a traditional sale.  Your lender will also cover all closing costs and commissions associated with the sale so you pay nothing.  Once we have an offer on the property, we submit the appropriate documentation to your lender and work closely with them to approve the sale and negotiate full satisfaction of mortgage debt.  Once approved, the buyer closes on the property and you as the seller may receive up to $3,000 in Relocation Assistance money as this program not only participates in HAFA, but they also many times will match the HAFA Relocation Assistance program monies without the seller having to go through the HAFA program, which is even better!

 

If you currently have a loan with World Savings or Wachovia and have questions about this short sale program and how it can benefit you, please contact us immediately to discuss this further.  You can also visit our website for more information about this program or Arizona short sales in general.

SEARCH THE MLS YOURSELF! FIND SHORT SALES, FORECLOSURES, MORE!

Looking for a home and want to use a more reliable site then realtor.com or tulia?  Check out our MLS search capabilities on our website!  We give you full access to MLS listings throughout the whole valley plus the most up to date information on each property.  Click here to search yourself or call us to set up an even more personalized & automatic search option!

WHY YOU SHOULD SHORT SALE!

Contemplating going through a short sale.  Here are some benefits of going with a short sale rather than a loan modification or foreclosures:

  • You can continue to live in your property through the short sale process which enables you to save money and prepare for your new financial future.
  • You get rid of a high loan balance on a property that is not worth what you paid for it – at NO COST to you!
  • Delinquent property taxes will have been paid.
  • You will AVOID FORECLOSURE on your credit report.
  • As of today’s guidelines, you will be eligible for mortgage financing only 2 years after the close of your short sale!
  • You can begin new planning for you and your family’s future.
  • According to the Mortgage Forgiveness Debt Relief Act of 2007, you will have tax free debt relief on the federal tax return on the bank’s shortfall provided that you close the short sale by December 31, 2012.

If you are interested in hearing more information about short sales or would like to speak with us about your personal situation feel free to contact us on our website!

SHORT SALE NEWS? NO – BUT GREAT THOUGHTS TO PONDER

Today’s post is not quite our typical real estate update, but it is something important for all of us to think about.  I received an article written by a nurse going over the top 5 regrets people have on their deathbed.  The article includes some really great points about life and really makes one think about where their life is going.  I wanted to share it with all of you out there and hope you find it as interesting as I did.

“Top 5 Regrets People Make on their Deathbed

By Bronnie Ware (who worked for years nursing the dying)

For many years I worked in palliative care. My patients were those who had
gone home to die. Some incredibly special times were shared. I was with them for the last three to twelve weeks of their lives.

People grow a lot when they are faced with their own mortality. I learnt
never to underestimate someone’s capacity for growth. Some changes were
phenomenal. Each experienced a variety of emotions, as expected, denial, fear,
anger, remorse, more denial and eventually acceptance. Every single patient
found their peace before they departed though, every one of them.

When questioned about any regrets they had or anything they would do differently, common themes surfaced again and again. Here are the most common five:

1. I wish I’d had the courage to live a life true to myself, not the
life others expected of me.

This was the most common regret of all. When people realise that their life
is almost over and look back clearly on it, it is easy to see how many dreams
have gone unfulfilled. Most people have had not honoured even a half of their
dreams and had to die knowing that it was due to choices they had made, or not made.  It is very important to try and honour at least some of your dreams along the way. From the moment that you lose your health, it is too late. Health brings a freedom very few realise, until they no longer have it.

2. I wish I didn’t work so hard.

This came from every male patient that I nursed. They missed their children’s
youth and their partner’s companionship. Women also spoke of this regret. But as most were from an older generation, many of the female patients had not been breadwinners. All of the men I nursed deeply regretted spending so much of their lives on the treadmill of a work existence.  By simplifying your lifestyle and making conscious choices along the way, it is possible to not need the income that you think you do. And by creating more space in your life, you become happier and more open to new opportunities, ones more suited to your new lifestyle.

3. I wish I’d had the courage to express my feelings.

Many people suppressed their feelings in order to keep peace with others. As
a result, they settled for a mediocre existence and never became who they were
truly capable of becoming. Many developed illnesses relating to the bitterness
and resentment they carried as a result.  We cannot control the reactions of others. However, although people may initially react when you change the way you are by speaking honestly,in the end it raises the relationship to a whole new and healthier level. Either that or it releases the unhealthy relationship from your life. Either way, you win.

4. I wish I had stayed in touch with my friends.

Often they would not truly realise the full benefits of old friends until their dying weeks and it was not always possible to track them down. Many had become so caught up in their own lives that they had let golden friendships slip by over the years. There were many deep regrets about not giving friendships the time and effort that they deserved.Everyone misses their friends when they are dying. It is common for anyone in a busy lifestyle to let friendships slip. But when you are faced with your approaching death, the physical details of life fall away. People do want to get their financial affairs in order if possible. But it is not money or status that holds the true importance for them. They want to get things in order more for the benefit of those they love. Usually though, they are too ill and weary to ever manage this task. It is all comes down to love and relationships in the end. That is all that remains in the final weeks,love and relationships.

5. I wish that I had let myself be happier.

This is a surprisingly common one. Many did not realise until the end that
happiness is a choice. They had stayed stuck in old patterns and habits. The
so-called ‘comfort’ of familiarity overflowed into their emotions, as well as
their physical lives. Fear of change had them pretending to others, and to their
selves, that they were content. When deep within, they longed to laugh properly
and have sillyness in their life again.   When you are on your deathbed, what
others think of you is a long way from your mind. How wonderful to be able to
let go and smile again,long before you are dying.”

 

Information received from http://www.inspirationandchai.com/Regrets-of-the-Dying.html