I know people have been wondering what exactly will happen with the mortgage situation and the new bill that was just passed to help homeowners in trouble. Below is some additional information about the program courtesy of Bill Kamboukos of Strategic Mortgage's blog:

FACT SHEET: FHA TO PROVIDE ADDITIONAL MORTGAGE ASSISTANCE TO STRUGGLING HOMEOWNERS

The President has signed into law legislation that will allow HUD's Federal Housing Administration (FHA) to continue providing targeted mortgage assistance to homeowners. The Hope for Homeowners program will continue FHA's existing and successful efforts to provide aid to struggling families trapped in mortgages they currently cannot afford. Under the program, certain borrowers facing difficulty with their mortgage will be eligible to refinance into FHA-insured mortgages they can afford. The program will be implemented on October 1, 2008.

Sustainable, Affordability Homeownership: Hope for Homeowners maintains FHA's long-standing requirement that new loans be based on a family's long-term ability to repay the mortgage. FHA only allows owner-occupants to be eligible for FHA-insured mortgages. Borrowers must also meet the following eligibility criteria:
Their mortgage must have originated on or before January 1, 2008;
Their mortgage debt-to-income must be at least 31 percent;
They cannot afford their current loan;
They did not intentionally miss mortgage payments; and
They do not own second homes.

Features of FHA-insured loans under the new program include:
30-year, fixed rate mortgage;
Maximum 90 percent loan-to-value ratio;
No prepayment penalties;
$550,440 maximum mortgage amount;
Extinguishment of any subordinate liens; and
New home appraisals from FHA-approved appraisers.
HUD, Treasury, FDIC and the Federal Reserve will form the Congressionally-mandated Board of Directors and work together to establish additional program standards.

Voluntary Lender Participation: FHA will continue to offer lenders an alternative to foreclosing on borrowers. Similar to FHASecure's recent expansion, lenders will be encouraged to write-down the outstanding mortgage principal balances to 90 percent of the new value of the property. In many cases, reductions in principle will cost lenders less than the losses associated with foreclosure.

Market Stability and Liquidity: By continuing to slow the rate of foreclosures, this program will support FHA's existing effort to stabilize local housing markets. From September 2007 to June 2008, FHA has guaranteed more than $93 billion of mortgage capital.

Funding: FHA will insure up to $300 billion in new loans. Borrowers will pay an upfront premium of 3 percent of the original mortgage amount and an annual premium of 1.5 percent of the outstanding mortgage amount. Any additional costs incurred by FHA will be reimbursed by Fannie Mae and Freddie Mac.

Program Timeline: The program will last from October 1, 2008 through September 30, 2011. Since September 2007, FHASecure has helped more than 290,000 families obtain safer, more affordable mortgages. FHASecure is on pace to help 500,000 families by the end of the year

For more info, check out the Strategic Mortgage blog, here's the link: http://activerain.com/blogs/vbkamb

Yours to Count On,
Erika Madsen
Real Estate Consultant
Re/Max Power Realty
"Your Advisory Team" Founder/Manager
480-695-6572

p.s. if you or anyone you know is considering a move in the current real estate market- you deserve an agent who has a strong knowledge to help you succeed! Visit http://www.PhoenixAreaMls.com/ to learn more about Your Advisory Team & Our Performance GUARANTEES!!

Well here we go again, major change to lending guidelines, if you have been planning or wanting to purchase another home & had planned to rent yours out, you need to READ this! Feel free to call me with any questions afterwards and I will refer you to great lenders who are keeping up to date with these changes- they will be able to guide you in the best direction to reach your goals.

https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2008/0816.pdf

Yours to Count On,
Erika Madsen
Real Estate Consultant
Re/Max Power Realty
"Your Advisory Team" Founder/Manager
480-695-6572

p.s. if you or anyone you know is considering a move in the current real estate market- you deserve an agent who has a strong knowledge to help you succeed! Visit http://www.PhoenixAreaMls.com/ to learn more about Your Advisory Team & Our Performance GUARANTEES!!

Here's more troubling info on the mortgage front. But, once again this is a great buying opportunity for anyone who has ever thought about owning a rental property. There are foreclosures all over the valley.

http://www.azcentral.com/arizonarepublic/news/articles/2008/07/22/20080722foreclosure0722.html

Yours to Count On,
Erika Madsen
Real Estate Consultant
Re/Max Power Realty
"Your Advisory Team" Founder/Manager
480-695-6572

p.s. if you or anyone you know is considering a move in the current real estate market- you deserve an agent who has a strong knowledge to help you succeed! Visit http://www.PhoenixAreaMls.com/ to learn more about Your Advisory Team & Our Performance GUARANTEES!!

This article gives good tips for what to look for if you are interested in pursuing a foreclosed property. Careful review upfront can help ensure a happy and prosperous outcome with a rental property. Not all foreclosed properties are in need of major repairs. Some in this market at even brand new! The homes run the gamut and as always, you need to do your homework to protect yourself, along with having a skilled, knowledgeable realtor helping you each step of the way!

http://www.azcentral.com/community/gilbert/articles/2008/07/12/20080712ev-foreclosures0712-ON.html

Yours to Count On,
Erika Madsen
Real Estate Consultant
Re/Max Power Realty
"Your Advisory Team" Founder/Manager
480-695-6572

p.s. if you or anyone you know is considering a move in the current real estate market- you deserve an agent who has a strong knowledge to help you succeed! Visit http://www.PhoenixAreaMls.com/ to learn more about Your Advisory Team & Our Performance GUARANTEES!!

Have you heard the buzz about the mortgage bailout yet? Here's some info on what it means for the economy and for you.



Yours to Count On,
Erika Madsen
Real Estate Consultant
Re/Max Power Realty
"Your Advisory Team" Founder/Manager
480-695-6572

p.s. if you or anyone you know is considering a move in the current real estate market- you deserve an agent who has a strong knowledge to help you succeed! Visit http://www.PhoenixAreaMls.com/ to learn more about Your Advisory Team & Our Performance GUARANTEES!!

Here is an interesting article from the Fox news website about Mortgage company (Fannie Mae and Freddie Mac) and their use of lobbyists to help enable them to open up lending with reduced down payments and looser loan terms than we've seen in past years. Although this does not change the current state of affairs in the mortgage industry, it may shed some light on why it is happening.

http://www.myfoxphoenix.com/myfox/pages/Business/Detail?contentId=7001808&version=1&locale=EN-US&layoutCode=TSTY&pageId=4.1.1

Yours to Count On,
Erika Madsen
Real Estate Consultant
Re/Max Power Realty
"Your Advisory Team" Founder/Manager
480-695-6572

p.s. if you or anyone you know is considering a move in the current real estate market- you deserve an agent who has a strong knowledge to help you succeed! Visit http://www.PhoenixAreaMls.com/ to learn more about Your Advisory Team & Our Performance GUARANTEES!!

This video may seem dismal to be posting on a Realtor's blog, but you have to look at the brightside. If you are in a position where you could take advantage of the low prices, this would be a great time to buy a rental property. This unique time in our Valley's real estate market has left an opening for some budding entrepenuers! Yes the lending is tighter but the reward could be big. When the market levels back out and the normal appreciation begins again, you could see this time as one of great opportunity.

http://www.myfoxphoenix.com/myfox/pages/Business/Detail?contentId=6999301&version=1&locale=EN-US&layoutCode=VSTY&pageId=4.1.1

Check our website here for our bank owned listings.

Yours to Count On,
Erika Madsen
Real Estate Consultant
Re/Max Power Realty
"Your Advisory Team" Founder/Manager
480-695-6572

p.s. if you or anyone you know is considering a move in the current real estate market- you deserve an agent who has a strong knowledge to help you succeed! Visit http://www.PhoenixAreaMls.com/ to learn more about Your Advisory Team & Our Performance GUARANTEES!!

Since this topic is more of a reality today I thought I would help people understand what a short sale is. This article by K. Michelle Lind does a good job of explaining it.

Short Sale Transactions
By K. Michelle Lind

Unfortunately, some homeowners today owe more on their home than what the property is worth. Some programs that were intended to make it easier to obtain financing and increase homeownership resulted in loans that required small or no down payment, interest-only loans that do not build equity, and other loan programs that require such small payments that the loan amount actually increases rather than decreases. As a result, some homeowners have negative equity in their homes. Stagnant or decreasing property values add to the problem. Homeowners who financed their homes with loan programs with low initial rates of one percent to two percent will experience dramatic increases in their monthly payment when the loan resets to the market rate. These and other factors have contributed to a striking increase in home loan defaults and foreclosures.

Shorts Sales
In a loan default situation, the lender may be willing to work with the homeowner to avoid foreclosure. For example, a homeowner in default who owes $300,000 on a property that is worth $250,000 may be able to convince the lender to allow the home to be sold for less than the loan amount, or even accept less than the amount owed as payment in full. This is known as a short sale. A lender may agree to a short sale to save the costs associated with a trustee’s sale, such as attorney’s and trustee’s fees, eviction, property repair and resale costs. Additionally, a lender may agree to a short sale because, if the property is foreclosed upon, the loan becomes a “non-performing” loan on the accounting books, which may affect the funds the lender can obtain from the Federal Reserve for other loans.

Seller Considerations
When considering a short sale, the seller must first determine how much is owed on the property. For example, in addition to the delinquent loan, there may be a home equity loan, past due homeowner’s association fees or unpaid property taxes. Then, the seller must add the costs of a sale, such as closing costs, escrow fees and brokerage commissions. All of the seller’s debt and costs must be factored in before determining whether a short sale is feasible.
The seller should also be aware of some of the downsides to a short sale. A short sale could affect the seller’s credit score. Further, even if a lender agrees to a short sale, the lender, the VA or the FHA may not agree to forgive the debt entirely, and may require the seller to pay the difference as a personal obligation. The outstanding debt could result in a subsequent collection action. Therefore, the seller should be certain the terms of any short sale before making a decision and obtain any debt forgiveness agreement in writing.
Also, a short sale in which the debt is forgiven is a relief of debt and may be treated as income for tax purposes. A lender who forgives a debt must submit a 1099 form to the IRS indicating the amount of the debt that has been forgiven. (Note: The NATIONAL ASSOCIATION OF REALTORS supports proposed legislation that would change this tax law.)

The seller must convince the lender that it will fare better by agreeing to a sale for less than the outstanding loan amount. Thus, a short sale may involve more documentation than the original loan application since the seller must “reverse qualify” and prove that the seller is financially incapable of paying the loan. Also, different lenders have different short sale department names, so contacting the person who has the authority to authorize a short sale on behalf of the lender may require some tenacity. The appropriate department may be called the loss mitigation, work-out, foreclosure, loan modification or loan reinstatement department.

Yours to Count On,
Erika Madsen
Real Estate Consultant
Re/Max Power Realty
"Your Advisory Team" Founder/Manager
480-695-6572

p.s. if you or anyone you know is considering a move in the current real estate market- you deserve an agent who has a strong knowledge to help you succeed! Visit http://www.PhoenixAreaMls.com/ to learn more about Your Advisory Team & Our Performance GUARANTEES!!

Yours to Count On,
Erika Madsen
Real Estate Consultant
Re/Max Power Realty
"Your Advisory Team" Founder/Manager
480-695-6572

p.s. if you or anyone you know is considering a move in the current real estate market- you deserve an agent who has a strong knowledge to help you succeed! Visit http://www.PhoenixAreaMls.com/ to learn more about Your Advisory Team & Our Performance GUARANTEES!!

Check out this new listing. It is amazing! The home is gorgeous and what a value for the size. It is perfect for a growing family that needs more room to spread out! Here is the description:

THIS HOUSE IS A STEAL! WHY BUY NEW WHEN YOU CAN HAVE A LANDSCAPED YARD, WINDOW TREATMENTS IN A GREAT HOME SUPER FAMILY HOME IN REMINGTON HEIGHTS! 4 BEDROOM/2.5 BATH POPULAR MODEL BY PULTE. VERY CLEAN, CRISP AND WELL TAKEN CARE OF. GREAT HOME FOR THE GROWING FAMILY! DOWNSTAIRS HAS LIVING ROOM/DINING ROOM/FAMILY ROOM AREA WITH KITCHEN AND BREAKFAST AREA/ISLAND. UPSTAIRS COMPRISES ROOMY BEDROOMS AND HUGE LOFT LARGE ENOUGH FOR BACKUP FAMILY ROOM, OFFICE SET-UP, ETC.

Contact me for more information about this great property! You can also see more information on it including additional photos by clicking here.

Yours to Count On,
Erika Madsen
Real Estate Consultant
Re/Max Power Realty
"Your Advisory Team" Founder/Manager
480-695-6572

p.s. if you or anyone you know is considering a move in the current real estate market- you deserve an agent who has a strong knowledge to help you succeed! Visit http://www.PhoenixAreaMls.com/ to learn more about Your Advisory Team & Our Performance GUARANTEES!!

Here's an email I received from a friend about her son. Please read below and help if you can!

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Hey All,
Our son Easton and his team won the District 14 Championship for Allstars Little League!!!!! They had a little help from their coaches, one of whom in John Hilland (he is the littler coach on the far right in the picture- Easton is the third from the left behind the banner). All this means his team will represent the District 14 (east valley) area in the state playoffs which will be held in the lovely city of Kingman, Arizona from July 16-25, 2008. That means TEN DAYS of hot baseball and TEN DAYS of hotel and meal costs for twelve players! Therefore we are sending out this request for any help you can provide with a donation or sponsorship to help these kids get to the state playoffs, they need to raise $6,000.00 in the next two weeks, that is how much it costs to house and feed twelve kids for ten days (makes me glad I only had two kids!). These boys have worked very hard to beat out all the other teams for the opportunity to represent their District in the state tournament. In addition to practicing during the next two weeks, the players will be washing cars and doing any other jobs they can to earn money for their trip. Keep in mind all donations are tax deductible, a letter from the league president is attached which gives more information.
Should you have the ability to help, please contact Rochelle Hilland at 480-694-6822 or by e-mail at rochellehilland@cox.net

Larger donations of $300 or $500 Sponsorship can be done on-line note the team as 10-11 Teal All Stars ****http://www.gilbertlittleleague.com/online_sponsorships.htm
THANKS SO MUCH FOR ANY HELP YOU CAN PROVIDE. GO GILBERT AMERICAN ALLSTARS!!!!.

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Yours to Count On,
Erika Madsen
Real Estate Consultant
Re/Max Power Realty
"Your Advisory Team" Founder/Manager
480-695-6572

p.s. if you or anyone you know is considering a move in the current real estate market- you deserve an agent who has a strong knowledge to help you succeed! Visit http://www.PhoenixAreaMls.com/ to learn more about Your Advisory Team & Our Performance GUARANTEES!!