As the unemployment rate approaches double-digits, almost two million homes received foreclosure filings in the first half of 2009, 15% more than in the same period for 2008, and 9% more than in the previous six month period, according to a new industry survey.
RealtyTrac, an online marketplace for foreclosure properties, said 1.905 million foreclosure filings, default notices, auction sale notices and bank repossessions were reported on 1,528,364 U.S. properties between January and June.
To put that into context, 1 in 84 (or 1.19%) of all housing units in the US received at least one foreclosure notice during that period.
“In spite of the industry-wide moratorium earlier this year, along with local, state and national legislative action and increased levels of loan modification activity, foreclosure activity continues to increase to record levels,” said James J. Saccacio, CEO of RealtyTrac.
The most recent data doesn’t point to an easing in foreclosures. The final month of the period, June, reported 336,173 foreclosure filings, marking the fourth straight month that saw filings exceed 300,000.
Moreover, the second quarter was worse than the first. In Q2, 889,829 properties received foreclosure filings, an 11% increase from the previous quarter ― and a whopping 20% higher than Q2 2008.
Saccacio added: “Stemming the tide of foreclosures is a critical component to stabilizing the housing market, so it is imperative that the lending industry and the government work in tandem to find new approaches to address this issue.”
Here are the AZ rankings:
State rank Total foreclosure filings Jan/Jun
2 89,799
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!!
Saturday, July 25, 2009
Thanks to Rudy Benitez of Lion's Gate Mortgage for this info on the same day funding removal.
As of 7/31/2009 SAME DAY FUNDINGS WILL BE REMOVED AND NOT AVAILABLE. Please see the breakdown below regarding the Truth in Lending document (APR%) that all borrowers receive when purchasing/refinancing a home. Simply put, if your title agency changes any fees after the buyer’s sign, this will delay the loan another 3 days before it can close. Now is the time to ensure that you use quality loan officers and title folks to ensure you avoid these delays. We prepared for this back in March so we are good to go. See below and Google MDIA for more details:
MORTGAGE DISCLOSURES IMPROVEMENT ACT (MDIA)
Flagstar would like to announce the compliance changes that will take effect when the Mortgage Disclosures Improvement Act (MDIA) becomes effective on July 30, 2009.
NEW COMPLIANCE REQUIREMENTS
The following compliance requirements regarding how and when the TIL must be disclosed will become effective for all loans with an application taken on or after July 30, 2009:
There must be a seven business day waiting period between the date the initial TIL disclosure is provided to the consumer and signing of the loan.
There must be a three business day waiting period between the date a final / re-disclosed TIL is received by the consumer and the disbursement of the loan.
No fees, other than a bona fide credit report fee can be charged prior to the Initial TIL disclosure being provided.
Both final / re-disclosed and initial TIL disclosures shall contain the following statement
"You are not required to complete this agreement merely because you have received these disclosures or signed a loan application."
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!!
As of 7/31/2009 SAME DAY FUNDINGS WILL BE REMOVED AND NOT AVAILABLE. Please see the breakdown below regarding the Truth in Lending document (APR%) that all borrowers receive when purchasing/refinancing a home. Simply put, if your title agency changes any fees after the buyer’s sign, this will delay the loan another 3 days before it can close. Now is the time to ensure that you use quality loan officers and title folks to ensure you avoid these delays. We prepared for this back in March so we are good to go. See below and Google MDIA for more details:
MORTGAGE DISCLOSURES IMPROVEMENT ACT (MDIA)
Flagstar would like to announce the compliance changes that will take effect when the Mortgage Disclosures Improvement Act (MDIA) becomes effective on July 30, 2009.
NEW COMPLIANCE REQUIREMENTS
The following compliance requirements regarding how and when the TIL must be disclosed will become effective for all loans with an application taken on or after July 30, 2009:
There must be a seven business day waiting period between the date the initial TIL disclosure is provided to the consumer and signing of the loan.
There must be a three business day waiting period between the date a final / re-disclosed TIL is received by the consumer and the disbursement of the loan.
No fees, other than a bona fide credit report fee can be charged prior to the Initial TIL disclosure being provided.
Both final / re-disclosed and initial TIL disclosures shall contain the following statement
"You are not required to complete this agreement merely because you have received these disclosures or signed a loan application."
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!!
Wednesday, July 22, 2009
Thanks to LionsGate Financial for this data on the supply of foreclosures on the market.
July 21, 2009, 10:06 AM ET
Are Banks Holding a Shadow Inventory of Homes? By Nick Timiraos
The number of homes listed for sale in several housing markets fell last month to levels last seen at the start of the housing downturn. That’s raising hopes that several of the hardest-hit housing markets may be stabilizing.
But the housing cynic may wonder: how much does that have to do with banks holding foreclosed properties off the market to prevent a new glut of properties from hitting the market?
Figures released by ZipRealty, a national real estate brokerage that tracks Realtor listings in 28 major U.S. markets, showed that the number of active listings in those markets decreased by 2.1% in June from May.
California posted the most dramatic declines, with inventory falling by 54% in Los Angeles—a level last seen in Sept. 2005— while listings fell by 56% in San Bernardino. The number of homes listed in the San Francisco Bay Area dropped below 20,000 for the first time since Dec. 2006. Listings fell to a Jan. 2006 level in Orange County and a Feb. 2006 level in Phoenix.
It may be too soon to know if these are genuine “green shoots” in the West. After all, there are some signs that banks may be delaying foreclosures, either because they’re overwhelmed with a glut of delinquent loans or because they’re strategically holding off on oversaturating the market. That so-called “shadow inventory” could lead to an uptick in foreclosure listings later this year. (Jim Klinge, a Carlsbad, Calif-based real estate agent, shows off a few new shadow inventory listings here.)
For example, notices of default, which mark the first step in the foreclosure process, jumped by 10% in California last month from the previous year, according to ForeclosureRadar. But notice of trustee sales—the second step in the process, where lenders set a foreclosure sale date—fell by nearly 15% in June from the same month one year ago. (The L.A. Times housing blog has more).
It’s unclear why trustee sales have fallen even as defaults has risen. While California has a new foreclosure moratorium, banks that have loan modification programs in place have been exempted, so that’s not a terribly satisfying answer.
Readers, what do you think? Are inventory declines a sign of good news, or a head fake? If you’re seeing any evidence that shadow inventory is on the uptick, shoot me a note: nick.timiraos@wsj.com.
First American CoreLogic Sees Improvement in Home Price Declines Carrie Bay 07.21.09
National housing prices fell 9.2 percent in May compared to a year ago, representing the smallest year-over-year decline recorded in 2009 and the lowest since December 2007, according to newly released data from First American CoreLogic and its LoanPerformance Home Price Index (HPI). May’s decline was a 0.5 percent improvement over the 9.7 percent decline in April.
Since U.S. home prices hit their highest levels in July 2006, they have fallen an estimated 20.1 percent. First American CoreLogic’s market data shows that the rate of national price declines for residential single-family detached properties peaked at 11.9 percent in January 2009 and has since slowed by more than 2.5 percentage points through May. The company’s June preview data suggests further improvements in the rate of decline.
Despite the positive national trend, First American CoreLogic says the geographic breadth of price declines has not improved. The company reported 41 states with price drops in May, and 16 states with double-digit depreciation – well above the number of states experiencing declines a year ago.
Based on First American CoreLogic’s index, Nevada (-26.4 percent) remained the top-ranked state for annual price depreciation, with Florida (-25.5 percent) close behind. California’s (-19.8 percent) price trends continued to improve in May and is currently more than 10 percentage points better than the peak decline of 30.3 percent set in August 2008.
Arizona (-18.1 percent) and Illinois (-16.9 percent) round out the top five states for price declines, according to First American CoreLogic’s study. The company said Florida and Illinois are the only two states that are not currently showing signs of moderation or improvement among areas with the largest price decreases.
First American CoreLogic says that over the past few months, there has been a divergence in single-family detached residential properties as compared to single-family attached residential properties, which include condos and townhomes. As of May, prices of attached properties declined 12.0 percent from a year ago, compared to a 9.2 percent decrease for detached properties. The company says the gap reflects a very weak condo market, tighter underwriting guidelines for this type of property, and the faster run-up in prices for condos during the bubble market.
Mark Fleming, chief economist for First American CoreLogic, commented, “Although there has been some improvement in the national HPI, collateral risk will continue to be the main driver of the housing market for the remainder of 2009. Until home prices and the economy stabilize, mortgage performance will continue to worsen and home sales activity will remain flat nationally through 2010.”
Freddie Offers Warranties on REO Homes Carrie Bay 07.20.09
Purchasers of single-family foreclosed homes offered through Freddie Mac’s HomeSteps division will receive a comprehensive two-year home warranty paid for by Freddie Mac, the company announced Monday. In addition, for a limited time, the McLean, Virginia-based mortgage financier said it will pay up to 3.5 percent of the sales price in closing costs, potentially saving buyers of HomeSteps homes thousands of dollars in transaction costs.
The new warranty incentive is part of a HomeSteps' SmartBuy sales promotion, which began on July 17 and is scheduled to run through October 30, 2009. HomeSteps, the REO disposition and sales unit of Freddie Mac, markets a nationwide selection of Freddie Mac-owned homes.
Chris Bowden, VP of HomeSteps, said, "This unprecedented offer will enable HomeSteps buyers to protect against unexpected repair costs which could interfere with their ability to meet their mortgage obligation. Combined with our offer to pay up to 3.5 percent of the sales price in buyer's closing costs, we believe HomeSteps homes will have a competitive edge at building buyer confidence and increasing sales for our affordable homes."
The two-year warranty, called Home Protect, is provided by Cross Country Home Services, which has nearly 30 years’ experience providing home warranty and home service-related plans on a national basis. Home Protect will cover electrical, plumbing, air conditioning and heating systems, as well as ductwork and many major appliances. Freddie Mac will pay for the first two years of the warranty after which buyers will have an option to continue the warranty on their own.
The warranty is available only on single-family HomeSteps homes. The home must be sold as primary residence for at least $25,000 in the 48 contiguous states or Washington, D.C. The warranty and closing cost opportunities are not available on HomeSteps homes sold as investor properties, second homes, or vacation homes. To qualify for the limited-time buyer's closing cost offer, buyers must submit initial purchase offers by October 31, 2009 and complete the closing by December 31, 2009.
Ingrid Beckles, SVP of default asset management at Freddie Mac, commented, "We expect SmartBuy's comprehensive two-year warranty and closing cost offer to help more families buy and own HomeSteps homes, which in turn will help support home values and stabilize communities."
Federal, State Agencies Go After Foreclosure Rescue Companies Carrie Bay 07.17.09
The Federal Trade Commission (FTC) and prosecutors in 19 states have filed 189 legal actions against companies and individuals they say are carrying out loan modification scams and deceptively marketing foreclosure rescue services.
All of the lawsuits were filed in the U.S. district Court for the Central District of California, except for one filed in the U.S. District Court for the District of Idaho. Officials are asking the court for a permanent bar against the companies, including U.S. Foreclosure Relief, Loss Mitigation Services, Lucas Law Center, and Apply2Save. They are also seeking millions of dollars in civil penalties and restitution for the victimized homeowners.
FTC Chairman Jon Leibowitz and California Attorney General Jerry Brown made the announcement at a press conference in Los Angeles this week as part of Operation Loan Lies, a coordinated national law enforcement effort to crack down on mortgage modification scams.
FTC Chairman Jon Leibowitz said, “These con artists see the high foreclosure rates as an opportunity to prey on people in distress. They promise to rescue homeowners in troubled financial waters, but after they take their money they throw them an anchor instead of a lifeline.”
Leibowitz also encouraged homeowners to avoid foreclosure consultants that charge upfront fees, guarantee to stop a foreclosure or modify a loan, or advise against continuing payments to the mortgage company.
Operation Loan Lies follows a pledge made in early April by Leibowitz, when he was joined by Treasury Secretary Timothy Geithner, HUD Secretary Shaun Donovan, and several state attorneys general – a united front to step up enforcement efforts against those who target struggling homeowners with false claims of mortgage relief
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!!
July 21, 2009, 10:06 AM ET
Are Banks Holding a Shadow Inventory of Homes? By Nick Timiraos
The number of homes listed for sale in several housing markets fell last month to levels last seen at the start of the housing downturn. That’s raising hopes that several of the hardest-hit housing markets may be stabilizing.
But the housing cynic may wonder: how much does that have to do with banks holding foreclosed properties off the market to prevent a new glut of properties from hitting the market?
Figures released by ZipRealty, a national real estate brokerage that tracks Realtor listings in 28 major U.S. markets, showed that the number of active listings in those markets decreased by 2.1% in June from May.
California posted the most dramatic declines, with inventory falling by 54% in Los Angeles—a level last seen in Sept. 2005— while listings fell by 56% in San Bernardino. The number of homes listed in the San Francisco Bay Area dropped below 20,000 for the first time since Dec. 2006. Listings fell to a Jan. 2006 level in Orange County and a Feb. 2006 level in Phoenix.
It may be too soon to know if these are genuine “green shoots” in the West. After all, there are some signs that banks may be delaying foreclosures, either because they’re overwhelmed with a glut of delinquent loans or because they’re strategically holding off on oversaturating the market. That so-called “shadow inventory” could lead to an uptick in foreclosure listings later this year. (Jim Klinge, a Carlsbad, Calif-based real estate agent, shows off a few new shadow inventory listings here.)
For example, notices of default, which mark the first step in the foreclosure process, jumped by 10% in California last month from the previous year, according to ForeclosureRadar. But notice of trustee sales—the second step in the process, where lenders set a foreclosure sale date—fell by nearly 15% in June from the same month one year ago. (The L.A. Times housing blog has more).
It’s unclear why trustee sales have fallen even as defaults has risen. While California has a new foreclosure moratorium, banks that have loan modification programs in place have been exempted, so that’s not a terribly satisfying answer.
Readers, what do you think? Are inventory declines a sign of good news, or a head fake? If you’re seeing any evidence that shadow inventory is on the uptick, shoot me a note: nick.timiraos@wsj.com.
First American CoreLogic Sees Improvement in Home Price Declines Carrie Bay 07.21.09
National housing prices fell 9.2 percent in May compared to a year ago, representing the smallest year-over-year decline recorded in 2009 and the lowest since December 2007, according to newly released data from First American CoreLogic and its LoanPerformance Home Price Index (HPI). May’s decline was a 0.5 percent improvement over the 9.7 percent decline in April.
Since U.S. home prices hit their highest levels in July 2006, they have fallen an estimated 20.1 percent. First American CoreLogic’s market data shows that the rate of national price declines for residential single-family detached properties peaked at 11.9 percent in January 2009 and has since slowed by more than 2.5 percentage points through May. The company’s June preview data suggests further improvements in the rate of decline.
Despite the positive national trend, First American CoreLogic says the geographic breadth of price declines has not improved. The company reported 41 states with price drops in May, and 16 states with double-digit depreciation – well above the number of states experiencing declines a year ago.
Based on First American CoreLogic’s index, Nevada (-26.4 percent) remained the top-ranked state for annual price depreciation, with Florida (-25.5 percent) close behind. California’s (-19.8 percent) price trends continued to improve in May and is currently more than 10 percentage points better than the peak decline of 30.3 percent set in August 2008.
Arizona (-18.1 percent) and Illinois (-16.9 percent) round out the top five states for price declines, according to First American CoreLogic’s study. The company said Florida and Illinois are the only two states that are not currently showing signs of moderation or improvement among areas with the largest price decreases.
First American CoreLogic says that over the past few months, there has been a divergence in single-family detached residential properties as compared to single-family attached residential properties, which include condos and townhomes. As of May, prices of attached properties declined 12.0 percent from a year ago, compared to a 9.2 percent decrease for detached properties. The company says the gap reflects a very weak condo market, tighter underwriting guidelines for this type of property, and the faster run-up in prices for condos during the bubble market.
Mark Fleming, chief economist for First American CoreLogic, commented, “Although there has been some improvement in the national HPI, collateral risk will continue to be the main driver of the housing market for the remainder of 2009. Until home prices and the economy stabilize, mortgage performance will continue to worsen and home sales activity will remain flat nationally through 2010.”
Freddie Offers Warranties on REO Homes Carrie Bay 07.20.09
Purchasers of single-family foreclosed homes offered through Freddie Mac’s HomeSteps division will receive a comprehensive two-year home warranty paid for by Freddie Mac, the company announced Monday. In addition, for a limited time, the McLean, Virginia-based mortgage financier said it will pay up to 3.5 percent of the sales price in closing costs, potentially saving buyers of HomeSteps homes thousands of dollars in transaction costs.
The new warranty incentive is part of a HomeSteps' SmartBuy sales promotion, which began on July 17 and is scheduled to run through October 30, 2009. HomeSteps, the REO disposition and sales unit of Freddie Mac, markets a nationwide selection of Freddie Mac-owned homes.
Chris Bowden, VP of HomeSteps, said, "This unprecedented offer will enable HomeSteps buyers to protect against unexpected repair costs which could interfere with their ability to meet their mortgage obligation. Combined with our offer to pay up to 3.5 percent of the sales price in buyer's closing costs, we believe HomeSteps homes will have a competitive edge at building buyer confidence and increasing sales for our affordable homes."
The two-year warranty, called Home Protect, is provided by Cross Country Home Services, which has nearly 30 years’ experience providing home warranty and home service-related plans on a national basis. Home Protect will cover electrical, plumbing, air conditioning and heating systems, as well as ductwork and many major appliances. Freddie Mac will pay for the first two years of the warranty after which buyers will have an option to continue the warranty on their own.
The warranty is available only on single-family HomeSteps homes. The home must be sold as primary residence for at least $25,000 in the 48 contiguous states or Washington, D.C. The warranty and closing cost opportunities are not available on HomeSteps homes sold as investor properties, second homes, or vacation homes. To qualify for the limited-time buyer's closing cost offer, buyers must submit initial purchase offers by October 31, 2009 and complete the closing by December 31, 2009.
Ingrid Beckles, SVP of default asset management at Freddie Mac, commented, "We expect SmartBuy's comprehensive two-year warranty and closing cost offer to help more families buy and own HomeSteps homes, which in turn will help support home values and stabilize communities."
Federal, State Agencies Go After Foreclosure Rescue Companies Carrie Bay 07.17.09
The Federal Trade Commission (FTC) and prosecutors in 19 states have filed 189 legal actions against companies and individuals they say are carrying out loan modification scams and deceptively marketing foreclosure rescue services.
All of the lawsuits were filed in the U.S. district Court for the Central District of California, except for one filed in the U.S. District Court for the District of Idaho. Officials are asking the court for a permanent bar against the companies, including U.S. Foreclosure Relief, Loss Mitigation Services, Lucas Law Center, and Apply2Save. They are also seeking millions of dollars in civil penalties and restitution for the victimized homeowners.
FTC Chairman Jon Leibowitz and California Attorney General Jerry Brown made the announcement at a press conference in Los Angeles this week as part of Operation Loan Lies, a coordinated national law enforcement effort to crack down on mortgage modification scams.
FTC Chairman Jon Leibowitz said, “These con artists see the high foreclosure rates as an opportunity to prey on people in distress. They promise to rescue homeowners in troubled financial waters, but after they take their money they throw them an anchor instead of a lifeline.”
Leibowitz also encouraged homeowners to avoid foreclosure consultants that charge upfront fees, guarantee to stop a foreclosure or modify a loan, or advise against continuing payments to the mortgage company.
Operation Loan Lies follows a pledge made in early April by Leibowitz, when he was joined by Treasury Secretary Timothy Geithner, HUD Secretary Shaun Donovan, and several state attorneys general – a united front to step up enforcement efforts against those who target struggling homeowners with false claims of mortgage relief
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!!
Saturday, July 18, 2009
It is important to work with a professional if you are considering a short sale. There are some very common pitfalls to selling a home in a short sale situation. If you have any questions about short sales, please do not hesitate to contact me. Read below for some important info on short sales, courtesy of Certified Distressed Property Expert.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Pitfalls & Solutions
As a homeowner considering a short sale, it is important you understand the process. Following are some of the most common mistakes agents and homeowners make when handling a short sale.
Your Property is Priced Incorrectly
Pitfall: Your Property is Priced IncorrectlyThis is the most common mistake made with all properties, and the most common reason a property doesn’t sell.
Solution: Agent Providing Understanding and Transparency Your real estate agent will go through a detailed listing price strategy with you, allowing you to see exactly where your property should be priced based on its current condition, sales in your area, and most importantly, how much time you have left to sell.
Your Short Sale Proposal is Incomplete
Pitfall: Your Short Sale Proposal is IncompleteThis is one of the most frequently seen causes for the rejection of short sales proposals. Most agents do not understand the short sale process and what your lender will be looking for.
Solution: Understand All Aspects of the ProcessYour agent should understand the short sale process in detail and be able to explain it clearly. The agent should also be able to communicate effectively with both you and lenders to produce a complete and cohesive proposal.
There has been Inadequate Follow-up and Communication
Pitfall: There has been Inadequate Follow-up and CommunicationAs your property goes through each stage of the short sale process, an agent can jeopardize the transaction by not properly communicating with everyone involved. As the homeowner, you may not know that your file has been delayed, and that you again may run out of time to close and avoid foreclosure.
Solution: Select an Agent With ExperienceThe right agent knows exactly how to follow up to ensure that your lender’s issues are addressed in a timely manner, and will make certain you do not have unnecessary delays.
Not Enough Time
Pitfall: There Isn’t Enough TimeIt is critical that your agent understands the foreclosure laws in your area. They should be able to show you an estimated timeline for the process, from start to closing. In addition, they should know how to communicate with your lender. Certain information can be provided to lenders to postpone your foreclosure for weeks or months in order to negotiate a sale.
Solution: Provide Accurate and Useful InformationMake sure you provide your agent accurate information as to exactly how many payments you have missed and any correspondence you have received from your lender. This will allow your agent to understand your situation and work to improve it.
Your Deal is Not Submitted Properly
Pitfall: Your Deal is Not Submitted ProperlyIf you do not follow the directions you receive for submission, then you are expecting an over-worked, under-staffed department to go out of their way to handle your file. There is very little likelihood of this situation working out in your favor.
Solution: Follow Instructions CloselyIf you are instructed to fax your file, fax it and send a backup copy in the mail. If you are instructed to mail two copies, mail two copies. When you reach the point of having a contract, all your information, and a completed proposal, you do not want your deal to fall apart because no one sees it.
The Buyer’s Offer is Too Low
Pitfall: The Buyer’s Offer is Too LowMany agents will encourage you to submit any offer that comes in. The reality is that a short sale is not the same as a fire sale. In order to have a legitimate chance of getting your deal approved, you must have an offer that is more attractive to the lender than a foreclosure.
Solution: Proper NegotiationThe right agent will work with you to properly negotiate any offer that you receive to get ‘highest and best’ from each potential buyer. This ensures you are presenting the best possible solution to your lender.
The Buyer’s Contract is Not Strong Enough
Pitfall: The Buyer’s Contract is Not Strong EnoughEspecially in our current economic climate, willingness to make an offer on a property does not mean that a buyer is truly qualified to purchase. The reality is that buyers need to be preapproved for financing, closing funds must be verified, and their ability to buy needs to be confirmed.
Solution: An Agent Familiar with Qualifying BuyersYour agent should be familiar with what must be verified in order to qualify a buyer to submit an offer on your property. Otherwise, these offers may have little chance of closing. Don’t risk this process with an uneducated agent who does not appreciate this aspect of short sales.
In conclusion, While these pitfalls may seem troublesome, the right agent can help you navigate your way to a successful closing. Don’t endanger your financial future and the potential sale of your home with an agent who does not fully understand the process. CDPE-designated agents have completed extensive training in the short sale process, and in assisting struggling homeowners who need real solutions. They understand what you are going through, and are here to serve and help save your family’s interests.
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!!
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Pitfalls & Solutions
As a homeowner considering a short sale, it is important you understand the process. Following are some of the most common mistakes agents and homeowners make when handling a short sale.
Your Property is Priced Incorrectly
Pitfall: Your Property is Priced IncorrectlyThis is the most common mistake made with all properties, and the most common reason a property doesn’t sell.
Solution: Agent Providing Understanding and Transparency Your real estate agent will go through a detailed listing price strategy with you, allowing you to see exactly where your property should be priced based on its current condition, sales in your area, and most importantly, how much time you have left to sell.
Your Short Sale Proposal is Incomplete
Pitfall: Your Short Sale Proposal is IncompleteThis is one of the most frequently seen causes for the rejection of short sales proposals. Most agents do not understand the short sale process and what your lender will be looking for.
Solution: Understand All Aspects of the ProcessYour agent should understand the short sale process in detail and be able to explain it clearly. The agent should also be able to communicate effectively with both you and lenders to produce a complete and cohesive proposal.
There has been Inadequate Follow-up and Communication
Pitfall: There has been Inadequate Follow-up and CommunicationAs your property goes through each stage of the short sale process, an agent can jeopardize the transaction by not properly communicating with everyone involved. As the homeowner, you may not know that your file has been delayed, and that you again may run out of time to close and avoid foreclosure.
Solution: Select an Agent With ExperienceThe right agent knows exactly how to follow up to ensure that your lender’s issues are addressed in a timely manner, and will make certain you do not have unnecessary delays.
Not Enough Time
Pitfall: There Isn’t Enough TimeIt is critical that your agent understands the foreclosure laws in your area. They should be able to show you an estimated timeline for the process, from start to closing. In addition, they should know how to communicate with your lender. Certain information can be provided to lenders to postpone your foreclosure for weeks or months in order to negotiate a sale.
Solution: Provide Accurate and Useful InformationMake sure you provide your agent accurate information as to exactly how many payments you have missed and any correspondence you have received from your lender. This will allow your agent to understand your situation and work to improve it.
Your Deal is Not Submitted Properly
Pitfall: Your Deal is Not Submitted ProperlyIf you do not follow the directions you receive for submission, then you are expecting an over-worked, under-staffed department to go out of their way to handle your file. There is very little likelihood of this situation working out in your favor.
Solution: Follow Instructions CloselyIf you are instructed to fax your file, fax it and send a backup copy in the mail. If you are instructed to mail two copies, mail two copies. When you reach the point of having a contract, all your information, and a completed proposal, you do not want your deal to fall apart because no one sees it.
The Buyer’s Offer is Too Low
Pitfall: The Buyer’s Offer is Too LowMany agents will encourage you to submit any offer that comes in. The reality is that a short sale is not the same as a fire sale. In order to have a legitimate chance of getting your deal approved, you must have an offer that is more attractive to the lender than a foreclosure.
Solution: Proper NegotiationThe right agent will work with you to properly negotiate any offer that you receive to get ‘highest and best’ from each potential buyer. This ensures you are presenting the best possible solution to your lender.
The Buyer’s Contract is Not Strong Enough
Pitfall: The Buyer’s Contract is Not Strong EnoughEspecially in our current economic climate, willingness to make an offer on a property does not mean that a buyer is truly qualified to purchase. The reality is that buyers need to be preapproved for financing, closing funds must be verified, and their ability to buy needs to be confirmed.
Solution: An Agent Familiar with Qualifying BuyersYour agent should be familiar with what must be verified in order to qualify a buyer to submit an offer on your property. Otherwise, these offers may have little chance of closing. Don’t risk this process with an uneducated agent who does not appreciate this aspect of short sales.
In conclusion, While these pitfalls may seem troublesome, the right agent can help you navigate your way to a successful closing. Don’t endanger your financial future and the potential sale of your home with an agent who does not fully understand the process. CDPE-designated agents have completed extensive training in the short sale process, and in assisting struggling homeowners who need real solutions. They understand what you are going through, and are here to serve and help save your family’s interests.
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!!
If you or someone you know may be facing a short sale, here is some very helpful information from the Certified Distressed Property Expert. Read some clarifying information about common short sale myths.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Short Sale Myths
A short sale can be an excellent solution for homeowners who must sell and owe more on their homes than they are worth. Unfortunately, a number of myths about short sales have developed, and it is important to understand the reality of this process should you find it meets your current needs.
Myth #1 – The Bank Would Rather Foreclose than Bother with a Short SaleThis is one of the most common misconceptions. The reality is that banks do not want to foreclose on your property because the foreclosure process is incredibly costly. Banks, investors, and even the federal government have all publicly stated that if a person is qualified for a short sale, the deal needs to be considered. Overwhelmingly, banks receive more on their investment through a short sale than a foreclosure.
The qualifications for a short sale include:
Financial Hardship – There is a situation causing you to have trouble affording your mortgage.
Monthly Income Shortfall – “You have more month than money.” A lender will want to see that you cannot afford, or soon will not be able to afford your mortgage.
Insolvency – The lender will want to see that you do not have significant liquid assets that would allow you to pay down your mortgage.
Myth #2 – You Must Be Behind on Your Mortgage to Negotiate a Short SaleWhile this may have previously been the case, today lenders are looking for verifiable hardship, monthly cash flow shortfall, or pending shortfall and insolvency.
If you meet these three requirements and believe that you soon may be unable to afford your mortgage, act immediately. Any delay could limit your options. Do not wait until the countdown clock to foreclosure has started and you have even less time left.
Myth #3 – There is Not Enough Time to Negotiate a Short Sale Before My ForeclosureThis is a myth that probably hurts homeowners the most. Many do not realize that foreclosure is a process, and that there is time to make decisions that may result in better outcomes.
The foreclosing party—in most cases a lender—can stall a foreclosure up to the final day of the process. Today, many lenders will stall a foreclosure with as little as a phone call from you explaining that you are trying to sell, and almost all lenders will stall a foreclosure with a legitimate contract. For real estate professionals who understand foreclosures and short sales, there is time available until the foreclosure process is complete.
Myth #4 – Listing My Home as a Short Sale is an EmbarrassmentIt is understandable to have reservations about letting the world know that you owe more on your home than it is worth. However, according to recent estimates, one out of five homeowners in the U.S. is in the same situation. You are to be congratulated for admitting you need help, taking action, and finding a professional who can work with you toward a solution.
With recent estimates showing 40-60% of U.S. sales will be short sales or foreclosures, you are not alone.
Myth #5 – Short Sales are Impossible and Never Get ApprovedThis is a complete falsehood. Are short sales more difficult to execute? Yes. Do you, as a homeowner, need to learn about a new process? Yes. Are they impossible? Absolutely not.
For example, agents with the Certified Distressed Property Expert® (CDPE) Designation receive thousands of short sale approvals on a monthly basis. These professionals have undergone extensive training in methods to help homeowners in distress and process short sales. While there are no guarantees in any transaction, more and more short sales are being approved regularly. This is far from an impossible process.
Myth #6 – Banks are Waiting on a Bailout and Not Accepting Short SalesYou may have heard this, but the reality is that banks (and the U.S. government) are trying to do anything they can, within reason, to avoid foreclosing on properties. It is preposterous to believe they would deny a short sale in hopes that some future legislation would pass and pay them for losses.
Today, more banks are aggressively pursuing short sales and working with agents who understand how to process them. Freddie Mac recently hosted a national training Webinar for real estate agents where they expressly stated the organizational goal of “eliminating distressed assets through modification or short sale.”
Myth #7 – Buyers are Not Interested in Short Sale PropertiesThis is a myth that potential sellers hear all the time. Thankfully, this is just not true. In fact, many agents are getting calls from buyers who say they only want to look at foreclosure and short sales.
For buyers, short sales and foreclosures have become synonymous with “good deals.” More specifically, international buyers are targeting these properties. Listing with an experienced agent who is educated in the short sale process will provide you with a great chance of quickly seeing a contract on your property.
In conclusion, Agents with the CDPE Designation have been trained in all aspects of the short sale process, and know how to deal with the parties involved in foreclosures. Finding a CDPE can explain what options you have, and get you on the path to recovery.
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!!
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Short Sale Myths
A short sale can be an excellent solution for homeowners who must sell and owe more on their homes than they are worth. Unfortunately, a number of myths about short sales have developed, and it is important to understand the reality of this process should you find it meets your current needs.
Myth #1 – The Bank Would Rather Foreclose than Bother with a Short SaleThis is one of the most common misconceptions. The reality is that banks do not want to foreclose on your property because the foreclosure process is incredibly costly. Banks, investors, and even the federal government have all publicly stated that if a person is qualified for a short sale, the deal needs to be considered. Overwhelmingly, banks receive more on their investment through a short sale than a foreclosure.
The qualifications for a short sale include:
Financial Hardship – There is a situation causing you to have trouble affording your mortgage.
Monthly Income Shortfall – “You have more month than money.” A lender will want to see that you cannot afford, or soon will not be able to afford your mortgage.
Insolvency – The lender will want to see that you do not have significant liquid assets that would allow you to pay down your mortgage.
Myth #2 – You Must Be Behind on Your Mortgage to Negotiate a Short SaleWhile this may have previously been the case, today lenders are looking for verifiable hardship, monthly cash flow shortfall, or pending shortfall and insolvency.
If you meet these three requirements and believe that you soon may be unable to afford your mortgage, act immediately. Any delay could limit your options. Do not wait until the countdown clock to foreclosure has started and you have even less time left.
Myth #3 – There is Not Enough Time to Negotiate a Short Sale Before My ForeclosureThis is a myth that probably hurts homeowners the most. Many do not realize that foreclosure is a process, and that there is time to make decisions that may result in better outcomes.
The foreclosing party—in most cases a lender—can stall a foreclosure up to the final day of the process. Today, many lenders will stall a foreclosure with as little as a phone call from you explaining that you are trying to sell, and almost all lenders will stall a foreclosure with a legitimate contract. For real estate professionals who understand foreclosures and short sales, there is time available until the foreclosure process is complete.
Myth #4 – Listing My Home as a Short Sale is an EmbarrassmentIt is understandable to have reservations about letting the world know that you owe more on your home than it is worth. However, according to recent estimates, one out of five homeowners in the U.S. is in the same situation. You are to be congratulated for admitting you need help, taking action, and finding a professional who can work with you toward a solution.
With recent estimates showing 40-60% of U.S. sales will be short sales or foreclosures, you are not alone.
Myth #5 – Short Sales are Impossible and Never Get ApprovedThis is a complete falsehood. Are short sales more difficult to execute? Yes. Do you, as a homeowner, need to learn about a new process? Yes. Are they impossible? Absolutely not.
For example, agents with the Certified Distressed Property Expert® (CDPE) Designation receive thousands of short sale approvals on a monthly basis. These professionals have undergone extensive training in methods to help homeowners in distress and process short sales. While there are no guarantees in any transaction, more and more short sales are being approved regularly. This is far from an impossible process.
Myth #6 – Banks are Waiting on a Bailout and Not Accepting Short SalesYou may have heard this, but the reality is that banks (and the U.S. government) are trying to do anything they can, within reason, to avoid foreclosing on properties. It is preposterous to believe they would deny a short sale in hopes that some future legislation would pass and pay them for losses.
Today, more banks are aggressively pursuing short sales and working with agents who understand how to process them. Freddie Mac recently hosted a national training Webinar for real estate agents where they expressly stated the organizational goal of “eliminating distressed assets through modification or short sale.”
Myth #7 – Buyers are Not Interested in Short Sale PropertiesThis is a myth that potential sellers hear all the time. Thankfully, this is just not true. In fact, many agents are getting calls from buyers who say they only want to look at foreclosure and short sales.
For buyers, short sales and foreclosures have become synonymous with “good deals.” More specifically, international buyers are targeting these properties. Listing with an experienced agent who is educated in the short sale process will provide you with a great chance of quickly seeing a contract on your property.
In conclusion, Agents with the CDPE Designation have been trained in all aspects of the short sale process, and know how to deal with the parties involved in foreclosures. Finding a CDPE can explain what options you have, and get you on the path to recovery.
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!!
Wednesday, July 15, 2009
The big question is "have we hit the bottom of the market yet?". No one really knows the answer but we all speculate. Here is a chart from Money Magazine (August 2009) that has projections on where we still have to fall. The numbers aren't pretty in many places, Arizona included. But, it could open up the market for investors. If you have money to invest, you may want to seriously consider buying a rental property.
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!!
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!!
Monday, July 13, 2009
I just got this from Wells Fargo. Here is some important info on the new regulations influencing closing dates:
July 2009
How the New Government Regulations May Impact Your Closing Dates
On July 30, 2009, the new Housing and Economic Recovery Act (HERA) laws will go into effect. They require all mortgage lenders and mortgage brokers to help prevent deceptive lending practices and protect customers by helping them become more informed. We're proud to say these goals align with the responsible lending practices for which Wells Fargo Home Mortgage — the nation's #1 residential mortgage lender — has long been recognized. Most of the changes will be transparent to the homebuyer and the REALTOR® or Builder. However, there are new compliance requirements that we all need to prepare for that impact the process and timelines for mortgage financing, and therefore, could impact closing dates. Wells Fargo Home Mortgage wants to make sure you are aware of these changes and how they impact home purchase transactions. Please take a few minutes to read our Information Guide.
It will provide you with:
Background details on the new federal requirements
Four key elements you need to know
A sample calendar that shows how the different elements impact loan origination transactions
The key things each party in the transaction can do to help expedite the process and meet the desired closing date
Frequently asked questions
We hope you find this information helpful. Please contact your local Wells Fargo Home Mortgage consultant for more information and/or to answer your questions.We look forward to working with you to help make the dream of homeownership achievable and sustainable for more people in our country.
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!!
July 2009
How the New Government Regulations May Impact Your Closing Dates
On July 30, 2009, the new Housing and Economic Recovery Act (HERA) laws will go into effect. They require all mortgage lenders and mortgage brokers to help prevent deceptive lending practices and protect customers by helping them become more informed. We're proud to say these goals align with the responsible lending practices for which Wells Fargo Home Mortgage — the nation's #1 residential mortgage lender — has long been recognized. Most of the changes will be transparent to the homebuyer and the REALTOR® or Builder. However, there are new compliance requirements that we all need to prepare for that impact the process and timelines for mortgage financing, and therefore, could impact closing dates. Wells Fargo Home Mortgage wants to make sure you are aware of these changes and how they impact home purchase transactions. Please take a few minutes to read our Information Guide.
It will provide you with:
Background details on the new federal requirements
Four key elements you need to know
A sample calendar that shows how the different elements impact loan origination transactions
The key things each party in the transaction can do to help expedite the process and meet the desired closing date
Frequently asked questions
We hope you find this information helpful. Please contact your local Wells Fargo Home Mortgage consultant for more information and/or to answer your questions.We look forward to working with you to help make the dream of homeownership achievable and sustainable for more people in our country.
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!!
Thanks to Sarah Boelter of Equity Title for sending over this article.
Valley's home sales up in June
by Catherine Reagor - Jul. 8, 2009 12:00 AM
The Arizona Republic
Here are some more positive signs from metropolitan Phoenix's housing market, which may not be recovering but doesn't appear to be deteriorating any more. Home sales climbed again in June to reach 9,614, according to the Information Market/Cromford Report survey. That's an 11 percent increase from May's home sales. June is the sixth straight month home sales have climbed in the Valley. The median Valley resale-home price also climbed in June, the first monthly price increase since late 2007. Last month, the median ticked up to $125,000 from $122,000 in May. Foreclosures also climbed in June after dropping off for a few months. There were 5,149 trustee sales or foreclosures in the Valley, compared with 3,809 in May.
Pre-foreclosures, or notice of trustee sales, continue to hover around 8,700.
But, so far, the additional foreclosures aren't creating an oversupply problem for the housing market. Mike Orr, publisher of the Cromford Report, said the number of lender-owned properties listed for sale in the Arizona Regional Multiple Listing Service fell to 5,150 in June from 5,475 in May. "So, the supply was huge, but the demand was even greater," Orr said about Valley foreclosure homes. Also, the average price per square foot of foreclosures sold by lenders during June climbed to $65.64 in June from $63.77 in May.
HUD-fund changes
First-time home buyers trying to purchase Valley foreclosure houses through a federal program should now find it easier. In April, Arizona received $121 million in Neighborhood Stabilization funds from the U.S. Department of Housing and Urban Development. But for people to receive the funds to help them buy foreclosures, the federal agency was requiring lenders to discount their foreclosure properties 15 percent off the appraised value.
That was a major sticking point for many lenders, particularly in the Valley where investors are willing to pay cash and the full-appraisal price. So, HUD recently changed to 1 percent the discount required by lenders. The Arizona Housing Department recently launched its Neighborhood Stabilization program for home buyers to purchase foreclosure properties in Maricopa and Pima counties. Qualifying buyers can receive up to 22 percent of the purchase price on certain foreclosures homes. The state agency reports more than 20 families are in the process of purchasing a foreclosure home through its Neighborhood Stabilization program.
Check out the Web site YourWayHomeAZ .com to see if you qualify for the money to buy a foreclosure home. Reach Reagor at catherine .reagor@arizonarepublic .com.
Here is the link: http://www.azcentral.com/business/realestate/articles/2009/07/08/20090708biz-catherine0709.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!!
Valley's home sales up in June
by Catherine Reagor - Jul. 8, 2009 12:00 AM
The Arizona Republic
Here are some more positive signs from metropolitan Phoenix's housing market, which may not be recovering but doesn't appear to be deteriorating any more. Home sales climbed again in June to reach 9,614, according to the Information Market/Cromford Report survey. That's an 11 percent increase from May's home sales. June is the sixth straight month home sales have climbed in the Valley. The median Valley resale-home price also climbed in June, the first monthly price increase since late 2007. Last month, the median ticked up to $125,000 from $122,000 in May. Foreclosures also climbed in June after dropping off for a few months. There were 5,149 trustee sales or foreclosures in the Valley, compared with 3,809 in May.
Pre-foreclosures, or notice of trustee sales, continue to hover around 8,700.
But, so far, the additional foreclosures aren't creating an oversupply problem for the housing market. Mike Orr, publisher of the Cromford Report, said the number of lender-owned properties listed for sale in the Arizona Regional Multiple Listing Service fell to 5,150 in June from 5,475 in May. "So, the supply was huge, but the demand was even greater," Orr said about Valley foreclosure homes. Also, the average price per square foot of foreclosures sold by lenders during June climbed to $65.64 in June from $63.77 in May.
HUD-fund changes
First-time home buyers trying to purchase Valley foreclosure houses through a federal program should now find it easier. In April, Arizona received $121 million in Neighborhood Stabilization funds from the U.S. Department of Housing and Urban Development. But for people to receive the funds to help them buy foreclosures, the federal agency was requiring lenders to discount their foreclosure properties 15 percent off the appraised value.
That was a major sticking point for many lenders, particularly in the Valley where investors are willing to pay cash and the full-appraisal price. So, HUD recently changed to 1 percent the discount required by lenders. The Arizona Housing Department recently launched its Neighborhood Stabilization program for home buyers to purchase foreclosure properties in Maricopa and Pima counties. Qualifying buyers can receive up to 22 percent of the purchase price on certain foreclosures homes. The state agency reports more than 20 families are in the process of purchasing a foreclosure home through its Neighborhood Stabilization program.
Check out the Web site YourWayHomeAZ .com to see if you qualify for the money to buy a foreclosure home. Reach Reagor at catherine .reagor@arizonarepublic .com.
Here is the link: http://www.azcentral.com/business/realestate/articles/2009/07/08/20090708biz-catherine0709.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!!
Monday, July 06, 2009
Thanks to Tricia Wills from Equity Title for these July 1 graphs of inventory of homes in the across the Valley.
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!!
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!!
Friday, July 03, 2009
Census: Valley cities among fastest growing
by Katherine Greene - Jul. 1, 2009 12:00 AM
The Arizona Republic
Until last July, Valley cities were among the fastest growing in the country even as the housing bubble was starting to burst, according to estimates released today by the U.S. Census Bureau.
Between July 2007 and July 2008, Phoenix's population grew 2.2 percent to 1,567,924, its biggest jump since 2006. It added 33,184 residents last year - more than any other U.S. city except New York, the bureau estimated.
In terms of percentage growth during the same time period, the bureau estimates that Gilbert ranked fourth with a 5 percent gain, or about 10,283 people.
An increase in population doesn't necessarily mean people are moving here, said Bill Schoolings, Arizona's demographer. A portion of the increase can be attributed to more births than deaths - a phenomenon called the net natural increase, he said.
"That's not a huge shift," Schoolings said. "Things are happening as we speak with the economy and with the housing situation and not all of that may be fully reflected in the estimates."
The estimates drew skepticism from Jay Butler, director of the Arizona Real Estate Center at the W.P. Carey School of Business at Arizona State University.
Arizona's younger population means more people are having children, and that may be boosting the population more than migration in this recession, he said.
"There's a sense that the population count isn't as great as we thought it was going to be," he said.
Butler pointed out that some Valley schools aren't as full as predicted, and housing-permit numbers were misleading during the boom.
It left the impression that people were moving here, when in reality many of those houses were built by out-of-state investors, Butler said.
"There's a lot more to look at," he said.
The Census Bureau's annual estimates on population changes for U.S. states and municipalities cover a July-to-July span.
In that period, Arizona's population ticked up 2.3 percent to 6.5 million, the lowest increase this decade. Other Valley cities showed smaller increases as well.
Mesa's population grew by fewer than 4,000. Glendale added only 1,125.
Scottsdale added 2,287, or just less than 1 percent.
Gilbert's increase was modest compared with annual increases in previous years.
Gilbert grew faster in the past eight years than all U.S. cities except McKinney, Texas.
Gilbert nearly doubled its population between 2000 and 2008, adding 99,161 people.
Arizona saw its greatest growth this decade between July 2004 and July 2005, according to the data, when the population grew 3.7 percent.
The Census Bureau physically counts people living in America every 10 years.
Once that count occurs next year, people will have a more accurate idea of how much Arizona has grown since 2000, Butler said.
Slow or not, the growth is welcome, said Barry Broome, chief executive officer of the Greater Phoenix Economic Council.
"Growth is always a positive sign," he said. "It's an indicator that you're doing things right."
Cities that are growing signal youth and sustainability to potential residents and businesses, he said.
When cities are frequently at the top of growth lists, as Phoenix and Gilbert have been, it helps those municipalities lure revenue-boosting businesses.
"People are going to look at us as a region going in the right direction," he said, citing the semiconductor, aerospace, and solar and renewable energy fields.
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!!
by Katherine Greene - Jul. 1, 2009 12:00 AM
The Arizona Republic
Until last July, Valley cities were among the fastest growing in the country even as the housing bubble was starting to burst, according to estimates released today by the U.S. Census Bureau.
Between July 2007 and July 2008, Phoenix's population grew 2.2 percent to 1,567,924, its biggest jump since 2006. It added 33,184 residents last year - more than any other U.S. city except New York, the bureau estimated.
In terms of percentage growth during the same time period, the bureau estimates that Gilbert ranked fourth with a 5 percent gain, or about 10,283 people.
An increase in population doesn't necessarily mean people are moving here, said Bill Schoolings, Arizona's demographer. A portion of the increase can be attributed to more births than deaths - a phenomenon called the net natural increase, he said.
"That's not a huge shift," Schoolings said. "Things are happening as we speak with the economy and with the housing situation and not all of that may be fully reflected in the estimates."
The estimates drew skepticism from Jay Butler, director of the Arizona Real Estate Center at the W.P. Carey School of Business at Arizona State University.
Arizona's younger population means more people are having children, and that may be boosting the population more than migration in this recession, he said.
"There's a sense that the population count isn't as great as we thought it was going to be," he said.
Butler pointed out that some Valley schools aren't as full as predicted, and housing-permit numbers were misleading during the boom.
It left the impression that people were moving here, when in reality many of those houses were built by out-of-state investors, Butler said.
"There's a lot more to look at," he said.
The Census Bureau's annual estimates on population changes for U.S. states and municipalities cover a July-to-July span.
In that period, Arizona's population ticked up 2.3 percent to 6.5 million, the lowest increase this decade. Other Valley cities showed smaller increases as well.
Mesa's population grew by fewer than 4,000. Glendale added only 1,125.
Scottsdale added 2,287, or just less than 1 percent.
Gilbert's increase was modest compared with annual increases in previous years.
Gilbert grew faster in the past eight years than all U.S. cities except McKinney, Texas.
Gilbert nearly doubled its population between 2000 and 2008, adding 99,161 people.
Arizona saw its greatest growth this decade between July 2004 and July 2005, according to the data, when the population grew 3.7 percent.
The Census Bureau physically counts people living in America every 10 years.
Once that count occurs next year, people will have a more accurate idea of how much Arizona has grown since 2000, Butler said.
Slow or not, the growth is welcome, said Barry Broome, chief executive officer of the Greater Phoenix Economic Council.
"Growth is always a positive sign," he said. "It's an indicator that you're doing things right."
Cities that are growing signal youth and sustainability to potential residents and businesses, he said.
When cities are frequently at the top of growth lists, as Phoenix and Gilbert have been, it helps those municipalities lure revenue-boosting businesses.
"People are going to look at us as a region going in the right direction," he said, citing the semiconductor, aerospace, and solar and renewable energy fields.
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!!
Thanks to Nathan Jensen from Express One Mortgage for sending this on.
Obama widens mortgage refi program
With home prices still falling, administration opens up rescue program to homeowners whose loans are 125% of their home's value.
By Tami Luhby, CNNMoney.com senior writer
Last Updated: July 1, 2009: 10:17 PM ET
NEW YORK (CNNMoney.com) -- The Obama administration is widening its mortgage refinancing program to allow more borrowers hit hard by falling home prices to take part.
Borrowers whose loans are now worth up to 125% of their home's value are now eligible to refinance their homes under the Obama foreclosure prevention plan announced in February. Previously, the limit was 105%.
The move acknowledges that home prices in many areas have fallen so far that many people were shut out of the program. Some 67% of homeowners in Las Vegas -- one of the hardest hit areas and where Housing Secretary Shaun Donovan announced the expansion Wednesday -- owe more than their homes are worth. More than one in five borrowers are now underwater, with homes in parts of California and Florida losing more than 50% of their value, according to Zillow.com, a real estate Web site. Some 20 million people own homes worth less than their mortgages. "The president's Making Home Affordable plan is already helping far more than any previous foreclosure initiative and with today's announcement we will extend its reach still further," said Donovan.
How many more people will be drawn to the program now, however, remains a question, especially since mortgage rates are on the rise. Administration officials do not have an estimate.
Refinancings slow to ramp up Some 20,000 loans have been refinanced so far, according to the Treasury Department. The initiative waives the requirement that homeowners have at least 20% equity in their home, allowing them to take advantage of today's lower rates. Homeowners must still meet other criteria, including being current on their payments and having loans that are owned or backed by Fannie Mae or Freddie Mac. The administration has set up a Web site, http://www.makinghomeaffordable.gov/, with more information.
Wednesday's expansion means those with homes worth $200,000 and mortgages as large as $250,000 can still qualify. Previously, these borrowers could not have loans exceeding $210,000. The program, however, has been slow to ramp up. Borrowers have complained that banks are not approving their applications. The Mortgage Bankers Association last week slashed its 2009 forecast of originations because fewer refinancings were being done than they originally expected. The group said only 13,000 were done in the three months after the plan's launch.
The administration has projected that 4 million to 5 million mortgage borrowers would be helped. A Treasury official Tuesday said that the figure applied to those who would be eligible, not necessarily those who would participate. Administration officials do not have an updated figure of how many people would be eligible or participate now that the criteria has been widened. The recent uptick in mortgage prices has blunted the plan's benefit, as well. The Federal Reserve has been buying mortgage-backed securities and long-term Treasurys in an effort to lower rates.
It worked for a while. Rates hit a low of 4.84% on April 28, but are now at 5.45%, according to HSH Associates. Since mortgage rates have been in the 6% range in recent years, refinancing to the mid-5% range may not be worth it, said Keith Gumbinger, vice president at HSH Associates. A homeowner with a $200,000 mortgage at 6% would see a savings of about $64 a month if he refinanced at 5.5%, and that's before closing costs. "Are interest rates low enough to warrant getting into the process?" he said. The administration's announcement comes on the same day as an industry group reported that the demand for refinancing dropped 30% last week. In addition to higher rates, rising unemployment is contributing to the decline.
Borrowers with Freddie Mac loans who refinance through their current servicer can apply right away, but those who want to go through a different lender must wait until Oct. 1. Those with Fannie Mae mortgages can't use a different lender and they'll have to wait until Sept. 1 to refinance if their loans are more than 105% of their home's value.
A second part of the program lets eligible borrowers who are in default -- or at risk -- lower their monthly payments to no more than 31% of their pre-tax income. This can help those who are not making as much at their jobs or who have monthly payments they can't handle. Homeowners, servicers and mortgage investors can receive incentives to entice them to participate in the program. Banks have extended more than 200,000 trial modification offers, according to the Treasury Department. Homeowners must make three monthly payments on time before the modification is made permanent.
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!!
Obama widens mortgage refi program
With home prices still falling, administration opens up rescue program to homeowners whose loans are 125% of their home's value.
By Tami Luhby, CNNMoney.com senior writer
Last Updated: July 1, 2009: 10:17 PM ET
NEW YORK (CNNMoney.com) -- The Obama administration is widening its mortgage refinancing program to allow more borrowers hit hard by falling home prices to take part.
Borrowers whose loans are now worth up to 125% of their home's value are now eligible to refinance their homes under the Obama foreclosure prevention plan announced in February. Previously, the limit was 105%.
The move acknowledges that home prices in many areas have fallen so far that many people were shut out of the program. Some 67% of homeowners in Las Vegas -- one of the hardest hit areas and where Housing Secretary Shaun Donovan announced the expansion Wednesday -- owe more than their homes are worth. More than one in five borrowers are now underwater, with homes in parts of California and Florida losing more than 50% of their value, according to Zillow.com, a real estate Web site. Some 20 million people own homes worth less than their mortgages. "The president's Making Home Affordable plan is already helping far more than any previous foreclosure initiative and with today's announcement we will extend its reach still further," said Donovan.
How many more people will be drawn to the program now, however, remains a question, especially since mortgage rates are on the rise. Administration officials do not have an estimate.
Refinancings slow to ramp up Some 20,000 loans have been refinanced so far, according to the Treasury Department. The initiative waives the requirement that homeowners have at least 20% equity in their home, allowing them to take advantage of today's lower rates. Homeowners must still meet other criteria, including being current on their payments and having loans that are owned or backed by Fannie Mae or Freddie Mac. The administration has set up a Web site, http://www.makinghomeaffordable.gov/, with more information.
Wednesday's expansion means those with homes worth $200,000 and mortgages as large as $250,000 can still qualify. Previously, these borrowers could not have loans exceeding $210,000. The program, however, has been slow to ramp up. Borrowers have complained that banks are not approving their applications. The Mortgage Bankers Association last week slashed its 2009 forecast of originations because fewer refinancings were being done than they originally expected. The group said only 13,000 were done in the three months after the plan's launch.
The administration has projected that 4 million to 5 million mortgage borrowers would be helped. A Treasury official Tuesday said that the figure applied to those who would be eligible, not necessarily those who would participate. Administration officials do not have an updated figure of how many people would be eligible or participate now that the criteria has been widened. The recent uptick in mortgage prices has blunted the plan's benefit, as well. The Federal Reserve has been buying mortgage-backed securities and long-term Treasurys in an effort to lower rates.
It worked for a while. Rates hit a low of 4.84% on April 28, but are now at 5.45%, according to HSH Associates. Since mortgage rates have been in the 6% range in recent years, refinancing to the mid-5% range may not be worth it, said Keith Gumbinger, vice president at HSH Associates. A homeowner with a $200,000 mortgage at 6% would see a savings of about $64 a month if he refinanced at 5.5%, and that's before closing costs. "Are interest rates low enough to warrant getting into the process?" he said. The administration's announcement comes on the same day as an industry group reported that the demand for refinancing dropped 30% last week. In addition to higher rates, rising unemployment is contributing to the decline.
Borrowers with Freddie Mac loans who refinance through their current servicer can apply right away, but those who want to go through a different lender must wait until Oct. 1. Those with Fannie Mae mortgages can't use a different lender and they'll have to wait until Sept. 1 to refinance if their loans are more than 105% of their home's value.
A second part of the program lets eligible borrowers who are in default -- or at risk -- lower their monthly payments to no more than 31% of their pre-tax income. This can help those who are not making as much at their jobs or who have monthly payments they can't handle. Homeowners, servicers and mortgage investors can receive incentives to entice them to participate in the program. Banks have extended more than 200,000 trial modification offers, according to the Treasury Department. Homeowners must make three monthly payments on time before the modification is made permanent.
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!!
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