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

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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

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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!!