Here are the updated graphs on home inventories right now.






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 a great article from Mary Ellen Kohut on some of the recent changes with the new stimulous program.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

President Obama threw the Global Economy a life raft this week by signing the 780 billion dollar Stimulus Program on Tuesday; and on Wednesday introduced the Foreclosure Prevention Program. The Stimulus Package’s main agenda is to provide jobs and execute tax cuts to put money in our pockets. In Arizona we will probably receive somewhere close to one billion dollars to rebuild highways and bridges and to finance other projects that will be determined by our state lawmakers. Implementation may not be until summer, but is good news for all of those in construction. Mega corporations will be able to restructure debt and spread tax liabilities over several years. This will help national home builders still in business, telecommunications companies and Arizona casinos. We will all receive some sort of tax reimbursement. For those of us that own a home, greening it up a bit with solar, or fans, or acting like we care for the environment will offer small rebates. The government wants us to use these rebates to buy clothes at J. C. Penney’s, since we cannot afford Saks or Nordstrom’s anymore, or furniture at Sears. Spend, spend, spend (please) is the new Government mantra. First time home buyers are already experiencing a once in a lifetime opportunity with low home values and incredible interest rates. The new bill presents an additional incentive with a tax credit up to $8,000. This is a true gift that should stimulate our real estate economy.

President Obama’s Foreclosure Prevention Program will not be officially introduced until March. Loan modification is the main focus by pushing banks to modify loans by interest rate reduction on primary residences. The banks will be on the honor system to implement the plan. The refinancing piece of the program probably will not be much of a benefit to those of us in Arizona, since to qualify, our homes can only have 5% negative equity. That is so 2006. The glaring omissions were the validation of the rumor for guaranteed lower 30 year fixed interest rates, and any concession for the jumbo loan market. The soothsayers on Wall Street are panicking over the changes and playing the “what if” game. They are trying to decide if we were thrown a raft or an inflatable cartoon character.

FYI: What is the number of foreclosures? A 2,000 percent increase from 2005 screams the media! According to the Census Bureau, Maricopa County has over two million home owners. Roughly sixty thousand homes were foreclosed in 2008. So hold on to your stuffed animals, if my calculations are correct, that is 3.7% of all homes owned. That statistic will not make headline news.


Take some time this weekend to walk outside and enjoy the beautiful weather. We need to remind ourselves how much we enjoy living here in Arizona!

Mary Ellen

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~


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 been wondering if you will qualify for any of the housing bailouts that are being put in place? Here is a good Q & A about the stimulous/bailout packages, courtesy of OnQ Financial.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

FAQ: Who Qualifies for Housing Bailout?
Nick Timiraos reports:

The housing plan outlined Wednesday has two main components — a $75 billion loan modification plan, and a separate program to allow borrowers who aren’t in danger of default to refinance.

Here’s a look at some of the frequently asked questions:

Do I have to fall behind on my loan payments to be eligible for a loan modification?
No, but borrowers do have to demonstrate that they are in danger of staying current on their mortgage payments and that they don’t have enough income to make their mortgage payments. That could help borrowers whose interest rates are resetting or who have lost their jobs.

Who is eligible for a loan modification?
The program is open only to primary residences and homeowners who are paying more than 31% of their monthly gross income on mortgage payments. Jumbo loans, which exceed Fannie or Freddie loan limits, are not eligible. Final eligibility will be determined by your mortgage lender. (Some ineligible Americans are riled up.)

Can I modify a second mortgage?
No. Only first mortgages are eligible.

Is my lender required to participate?
No. Lenders participate on a voluntary basis, but the government is providing subsidies to encourage lenders and servicers to modify loans. Mortgage servicers, for example, receive $1,000 upfront for each loan modification and can receive an additional $1,000 annually for three years if the borrower stays current on the loan. (Plan is heavy on incentives to modify loans.)

Will the government reduce the size of my loan?
For those eligible for the government-subsidized loan modification, borrowers can receive a reduction in loan principal of $1,000 annually for five years if they stay current on their modified loan.

Borrowers who aren’t able to qualify for a loan modification because they aren’t in danger of defaulting on their loans may still be able to refinance their loans to take advantage of low interest rates.

Can I refinance my loan if I owe more than my property is worth?
Borrowers with little or no equity can refinance into a 30-year or 15-year fixed-rate mortgage at current rates as long as the amount owed on a first mortgage does not exceed 105% of their home’s current value. The refinance program is only open to borrowers with conforming loans that are owned or guaranteed by Fannie Mae or Freddie Mac. Borrowers must be able to demonstrate that they are current on mortgage payments and that they will be able to meet the new payment terms on the first mortgage.

How do I know if my mortgage is owned or guaranteed by Fannie or Freddie?
The White House will release full eligibility details on March 4, when the program begins, and it is recommending that borrowers contact their lender at that time to see if their mortgage is owned or guaranteed by Fannie or Freddie.

What happens if I have a second mortgage? Can I still refinance?
Borrowers with more than one mortgage may be eligible to refinance as long as they owe less than 105% the value of their property on the first mortgage. The second mortgage holder will have to agree to remain in a second position on the home.

Are jumbo loan holders eligible?

No. Only those who have mortgages owned or guaranteed by Fannie or Freddie can apply, and the government-held mortgage companies don’t guarantee jumbo loans.

(See more plan details on WashWire)

Permalink | Trackback URL: http://blogs.wsj.com/developments/2009/02/19/faq-who-qualifies-for-housing-


Mitchell Swindell

Executive Mortgage Consultant
OnQ Financial
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
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!!

With all of the changes on the horizon, I wanted to pass on some interesting facts to keep in mind about lending today. If you are in the market for a loan, here are some things to consider. This is a great email from Rudy Benitez at Lion's Gate Mortgage.
~~~~~~~~~~~~~~~~~~~~~~
Hi Friends,

Happy early Valentine’s Day to you all and I hope you enjoy the weekend. I am writing to you today to inform you on what has occurred this week within the financial market that will directly affect our business. I will keep it simple my friends.

-Some of the most prominent lenders (i.e Chase, CitiGroup) have agreed to halt foreclosure proceedings completely, under the pressure of federal law makers. How does this affect us? With foreclosures being firmly halted, this should help raise consumer confidence numbers and allow folks struggling to get back on their feet. With higher consumer confidence, this generally gets buyers “off the fence” so to speak and into the buying market. This halting is huge news and may bring forth a larger buying boom within the next few months. The adverse effect for those of us that work primarily in REO’s is the number of foreclosures hitting the number should drop over the course of the next 24 months. The link below has a very short and simple article with additional info.

http://www.mortgagenewsdaily.com/0213200_jpmorgan_citigroupmoratorium_foreclosures.asp

-Rates dropped significantly over the past 9 days. However, rates were back on the rise today as of 1:42 PM. Please remind your buyer’s that rates are still in the 4-5% range on 30Year Fixed Mortgages, but rates historically climb during the summer months. Time to buy is now so to speak.

-Reminders: starting next month many lenders will begin allowing more than 4 financed properties. Also, come spring many lenders will mandate that their preferred appraisers only be used on their purchase/refi transactions.

Also, please keep in mind that I am currently closing over 99.2% of ALL OF MY SUBMITTED LOANS. Simply put, if I have the privilege to work with you I will get the loan closed. If I cannot do it due to “red flags” on the file, I will tell you immediately in order to avoid unnecessary grief for you and your clients. Thanks so much for the referrals and support….I sincerely appreciate it.

Rudy Benitez
Senior Mortgage Consultant
Lion's Gate Mortgage
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~


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!!