Your Advisory Team ~ PhoenixAreaMls.com BLOG

2009-11-08T19:07:00.001-08:00

If you have some questions about the bill President Obama just signed extending the tax credit through April of 2010, this may clear some things up for you!

First Time Homebuyer Tax Credit Extended Into 2010! Plus...A New Tax Credit for Certain Existing Home Owners!

It's official. President Obama has signed a bill that extends the tax credit for first-time homebuyers (FTHBs) into the first half of 2010. This program had been scheduled to expire on November 30, 2009.

In addition to extending the tax credit of up to $8,000 through June 30, 2010, the extension measure also opens up opportunities for others who are not buying a home for the first time.
So Who Gets What? The program that has existed for FTHBs remains intact with the one exception that more people are now eligible based on an increase in the amount of income someone may now earn.

Additionally, the program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.

Deadlines In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010.

Higher Income Caps in Effect The amount of income someone can earn and qualify for the full amount of the credit has been increased.

Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible.

Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.

Maximum Purchase Price Qualifying buyers may purchase a property with a maximum sales price of $800,000. First-Time Homebuyer Tax Credit – Frequently Asked QuestionsHere are answers to some commonly asked questions about the tax credit.

What is a tax credit? A tax credit is a direct reduction in tax liability owed by an individual to the Internal Revenue Service (IRS). In the event no taxes are owed, the IRS will issue a check for the amount of the tax credit an individual is owed. Unlike the tax credit that existed in 2008, this credit does not require repayment unless the home, at any time in the first 36 months of ownership, is no longer an individual's primary residence.

What is the tax credit for first-time homebuyers (FTHBs)? An eligible homebuyer may request from the IRS a tax credit of up to $8,000 or 10% of the purchase price for a home. If the amount of the home purchased is $75,000, the maximum amount the credit can be is $7,500. If the amount of the home purchased is $100,000, the amount of the credit may not exceed $8,000.

Who is eligible for the FTHB tax credit? Anyone who has not owned a primary residence in the previous 36 months, prior to closing and the transfer of title, is eligible. This applies both to single taxpayers and married couples. In the case where there is a married couple, if either spouse has owned a primary residence in the last 36 months, neither would qualify. In the case where an individual has owned property that has not been a primary residence, such as a second home or investment property, that individual would be eligible.

As mentioned above, the tax credit has been expanded so that existing homeowners who have owned and occupied a primary residence for a period of five consecutive years during the last eight years are now eligible for a tax credit of up to $6,500.

How do I claim the credit? For those taking advantage of the tax credit in 2009, you may choose to either apply for the credit with your 2009 tax return or you may apply for the credit sooner by filing an amended 2008 tax return with Form 5405 (http://www.irs.gov/pub/irs-pdf/f5405.pdf).

Can you claim the tax credit in advance of purchasing a property? No. The IRS has recently begun prosecuting people who have claimed credits where a purchase had not taken place.

Can a taxpayer claim a credit if the property is purchased from a seller with seller financing and the seller retains title to the property? Yes. In situations where the buyer purchases the property, even though the seller retains legal title, the taxpayer may file for the credit. Examples of this would include a land contract, contract for deed, etc. According to the IRS, factors that would demonstrate the ownership of the property would include: 1. the right of possession, 2. the right to obtain legal title upon full payment of the purchase price, 3. the right to construct improvements, 4. the obligation to pay property taxes, 5. the risk of loss, 6. the responsibility to insure the property and 7. the duty to maintain the property.

Are there other restrictions to taking the credit? Yes. According to the IRS, if any of the following describe your situation, a credit would not be due.

You buy your home from a close relative. This includes your spouse, parent, grandparent, child or grandchild.
You do not use the home as your principal residence.
You sell your home before the end of the year.
You are a nonresident alien.
You are, or were, eligible to claim the District of Columbia first-time homebuyer credit for any taxable year. (This does not apply for a home purchased in 2009.)
Your home financing comes from tax-exempt mortgage revenue bonds. (This does not apply for a home purchased in 2009.)
You owned a principal residence at any time during the three years prior to the date of purchase of your new home. For example, if you bought a home on July 1, 2009, you cannot take the credit for that home if you owned, or had an ownership interest in, another principal residence at any time from July 2, 2006, through July 1, 2009.

Can you buy a home from a step-relative and be eligible for the credit? Yes. Provided the person you are buying a home from is not a direct blood relative, the purchase would be allowed.

Can parent(s) who will not live in the property cosign for a mortgage for their child and the child that is a qualifying FTHB still be eligible for the credit? Yes.

Can a separated spouse who has not owned a home for four years qualify for the FTHB tax credit if the spouse has owned a property anytime in the last three years? No. However, the spouse may be eligible for the repeat buyer credit. The best path to take in any situation regarding income taxes is to speak with a professional tax preparer or CPA.

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!!

2009-11-08T19:03:00.001-08:00

This is final, President Obama signed the bill to extend the tax credit until April 30th, 2010. Read the full story below:

RISMEDIA, November 6, 2009—President Barack Obama has approved the first-time homebuyer tax credit extension which will extend the tax credit until April 30, 2010. The extension is part of a $24 billion economic stimulus bill that will extend the $8,000 tax credit for homebuyers who are purchasing their first home from the current November 30 deadline and expands the program to offer a credit of $6,500 to homeowners who have lived in their current home for at least five years and are seeking to relocate. The following details apply to the homebuyer tax credit expansion: Who is Eligible -First-time homebuyers, who are defined by the law as buyers who have not owned a principal residence during the three-year period prior to the purchase, may be eligible for up to an $8,000 tax credit. -Existing homeowners who have been residing in their principal residence for five consecutive years out of the last eight and are purchasing a home to be their principal residence (“repeat buyer”), may be eligible for up to a $6,500 tax credit. -All U.S. citizens who file taxes are eligible to participate in the program. Income Limits Homebuyers who file as single or head-of-household taxpayers can claim the full credit ($8,000 for first-time buyers and $6,500 for repeat buyers) if their modified adjusted gross income (MAGI) is less than $125,000. -For married couples filing a joint return, the combined income limit is $225,000. -Single or head-of-household taxpayers who earn between $125,000 and $145,000, and married couples who earn between $225,000 and $245,000 are eligible to receive a partial credit. -The credit is not available for single taxpayers whose MAGI is greater than $145,000 and married couples with a MAGI that exceeds $245,000. Effective Dates -The eligibility period for the tax credit is for homes purchased after Nov. 6, 2009, and before May 1, 2010. However, home purchases subject to a binding sales contract signed by April 30, 2010, will qualify for the tax credit provided closing occurs prior to July 1, 2010. Types of Homes that Qualify -All homes with a purchase price of less than $800,000 qualify, including newly-constructed or resale, and single-family detached, townhomes or condominiums, provided that the home will be used as their principal residence. Vacation home and rental property purchases do NOT qualify. Tax Credit is Refundable -A refundable credit means that if the amount of income taxes you owe is less than the credit amount you qualify for, the government will send you a check for the difference. -For example: -A first-time buyer who qualifies for the full $8,000 credit who owes $5,000 in federal income taxes would pay nothing to the IRS and receive a $3,000 payment from the government. If you are due to receive a $1,000 refund, you would receive $9,000 ($1,000 plus the $8,000 first-time homebuyer tax credit). -A repeat buyer who owes $5,000 would pay nothing to the IRS and receive $1,500 back from the government. If you are due to get a $1,000 refund, you would get $7,500 ($1,000 plus the $6,500 repeat buyer tax credit). -All qualified homebuyers can take the tax credit on their 2009 or 2010 income tax return. Payback Provisions The tax credit is a true credit. It does not have to be repaid unless the home owner sells or stops using the home as their principal residence within three years after the purchase. The www.federalhousingtaxcredit.com site is being updated. Check the site next week for more detailed information on the new tax credit. For more information, visit www.nahb.org.

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!!

2009-11-08T19:00:00.000-08:00

Here is some information on the new Fannie Mae "Deed to lease" program to help those facing foreclosure to remail in their homes. Read the full story below:

News Release
November 5, 2009
Fannie Mae Announces Deed for Lease™ Program
WASHINGTON, DC -- Fannie Mae (FNM/NYSE) is implementing the Deed for Lease™ Program under which qualifying homeowners facing foreclosure will be able to remain in their homes by signing a lease in connection with the voluntary transfer of the property deed back to the lender.
"The Deed for Lease Program provides an additional option for qualifying homeowners who are facing foreclosure and are not eligible for modifications," said Jay Ryan, Vice President of Fannie Mae. "This new program helps eliminate some of the uncertainty of foreclosure, keeps families and tenants in their homes during a transitional period, and helps to stabilize neighborhoods and communities."
The new program is designed for borrowers who do not qualify for or have not been able to sustain other loan-workout solutions, such as a modification. Under Deed for Lease, borrowers transfer their property to the lender by completing a deed in lieu of foreclosure, and then lease back the house at a market rate.
To participate in the program, borrowers must live in the home as their primary residence and must be released from any subordinate liens on the property. Tenants of borrowers in this circumstance may also be eligible for leases under the program. Borrowers or tenants interested in a lease must be able to document that the new market rental rate is no more than 31% of their gross income.
Leases under the new program may be up to 12 months, with the possibility of term renewal or month-to-month extensions after that period. A Deed for Lease property that is subsequently sold includes an assignment of the lease to the buyer.
For additional information about the Deed for Lease Program, including full details on program eligibility, please review the Guide Announcement on www.efanniemae.com.

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!!

2009-11-08T18:58:00.000-08:00

Thanks to Mark Sheck from Cherry Creek Mortgage for sending this over to me:
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CNN Money is reporting that the House passed the Unemployment Extension Bill today, which includes the extension of the Tax Credit Program. Please see below.

Congress approves more benefits for jobless
Bill extends unemployment benefits by up to 20 weeks. Legislation also extends homebuyer tax credit into next year.

NEW YORK (CNNMoney.com) -- Unemployed Americans are set to get up to 20 additional weeks of jobless benefits, while new homebuyers are poised to see the $8,000 tax credit extended into mid-next year.
The House approved the measures by a 403-12 vote Thursday afternoon, a day after the Senate passed the legislation.
The president is scheduled to sign the bill into law Friday morning, the same day the government releases the monthly unemployment rate, which is expected to rise.
The closely watched legislation would extend jobless benefits in all states by 14 weeks. Those that live in states with unemployment greater than 8.5% would receive an additional six weeks. The proposal would be funded by extending a longstanding federal unemployment tax on employers through June 30, 2011.
The measure would apply to those whose benefits run out by Dec. 31, which is nearly two million people, according to Senate estimates. Those whose checks have already stopped would be able to reapply for another round.
The House, which passed its own benefits extension in September, giving an additional 13 weeks in high-unemployment states, approved the Senate's version.
"The bill will mark another step toward a boost in our economic growth and it will make critical investments for our families and our workers," said Speaker Nancy Pelosi, D-Calif. "The legislation offers a lifeline to out-of-work Americans, to the men and women hardest hit by the recession."
"The bill also a places a down payment on the future of our middle-class because it extends, for the first-time homebuyer, a tax credit helping more Americans purchase homes and making it a little easier for families to move into a new house and keep a roof over their heads," she added.
7,000 a day losing benefits
The Senate had been bickering over the details since September, and that cost more than 200,000 people their benefits. Some 7,000 unemployed Americans run out of benefits each day, according to the National Employment Law Project.
Millions of Americans are now depending on unemployment benefits, as the unemployment rate continues to soar. The unemployment rate hit a 26-year high of 9.8% in September, and is expected to go even higher when the October numbers are released on Friday.
More than one in three people who are unemployed have been out of work for at least six months, according to the law project.
Lawmakers twice lengthened the time people can receive checks to as much as 79 weeks, depending on the state. But at least one Republican warned this would be the final extension.
"The public needs to ... know, this is the last extension," said Johnny Isakson, R-Ga.
Tax break for buying a home
The legislation also would extend the $8,000 homebuyer tax credit to contracts signed by April 30 and closed by June 30. The controversial credit, which many say has boosted home sales in recent months, was set to expire after Nov. 30.
The bill also creates a $6,500 credit for those who buy a home after living in their current house at least five years. That measure would apply to contracts signed by April 30 and closed by June 30. The current credit defines a first-time homebuyer as someone who has not owned a residence within the past three years.
The credit would be available only for the purchase of principal residences priced at $800,000 or less.
The bill would raise the adjusted gross income cap to $125,000 for single filers and $225,000 for joint filers. The amount of the credit currently begins to phase out for taxpayers whose adjusted gross income is more than $75,000, or $150,000 for joint filers.
"It's gonna put people back to work, the home builders, put people in the real estate business," said Sen. Chris Dodd, D-Conn. "The kind of jobs that can make a difference."
The extension will cost $10.8 billion over 10 years, according to the Joint Committee on Taxation.
Through mid-September, 1.4 million tax returns had qualified for the credit, according to the IRS. Some portion of those returns, which the IRS couldn't specify, represents buyers who took advantage of an earlier version of the tax credit, which was only worth $7,500 and has to be repaid over time.
By the end of November, the credit will have been used by 1.8 million homebuyers, at least 355,000 of whom would not have bought a house without the tax break, according to estimates by the National Association of Realtors.
"The data on the present home buyer tax credit show that the credit has had its intended impact -- sales have jumped in recent months to a projected 5.1 million for the year and housing inventory has been trimmed, thus stabilizing home prices noticeably," said Ron Phipps, the association's first vice president, in Senate testimony last month.
The credit, however, has also posed many problems. Critics say it's a waste of money because most of those claiming the credit would have bought homes anyway.
It's also been the target of fraud. Some 74,000 people claimed more than $500 million in credits even though they may not be first-time homeowners, according to Treasury officials. And more than 580 children, including some as young as 4-years-old, have claimed the credit.
"Some key controls were missing to prevent an individual from erroneously or fraudulently claiming the credit and receiving an erroneous refund of up to $8,000," said J. Russell George, Treasury inspector general for tax administration, before a House subcommittee last month.
(See how the legislation also offers a big tax break for business.)
CNN Radio Capitol Hill correspondent Lisa Desjardins contributed to this report.
First Published: November 5, 2009: 2:45 PM ET

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!!

2009-11-01T19:03:00.000-08:00

Many thanks to Fletcher Wilcox for sending me this information.

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The Luxury Home Market

“I know a luxury home when I see one” said an agent. While the definition of a luxury home differs from agent to agent, this report examines different ways of looking at the luxury home market. The following is in this report:

• Greater Phoenix homes sales over $800,000 showing the number of short sales and lender-owned sales and the estimated months of supply. A Valley luxury tour recently reduced their definition of a luxury home from any home priced at $1,000,000 or more to a home priced at $800,000 or more.

• We look at The Scottsdale luxury market two different ways: Home sales between $1,000,000 and $1,999,999 and home sales between 4,000 and 5,000 square feet.

• For the city of Paradise Valley we review sales over $2,000,000. There is a table comparing the Original List Price to the Sold List Price for price reductions. Many comparable market reports compare the most recent List Price to the Sold List Price and not the Original List Price. This may distort things a little.

• For Fountain Hills there is a table showing home sales over $800,000.

While the categories below include luxury homes but not all homes in these categories may be luxury homes, the tables and charts do show trends for more expensive homes sales in 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!!

2009-11-01T18:07:00.000-08:00

These are some great stats provided by Fletcher Wilcox at Grand Canyon Title. Here's the recap:

The number of sales dipped below 8,000 to 7915. June was the best month for sales this year with 9,350 sales.

There are 25,000 more sales for the first nine months of 2009 then 2008.

The home sales median price was $130,000 up from $126,000 in August.

The home sales mean price was $175,000 up from $170,000 in August.

The number of lender-owned sales went down while the number of short sales stayed about the same.

66% of sales were either a lender-owned sale or short sale.

As the price range goes up the estimated number of months of supply goes up for most categories.

Single family detached properties were purchased the following ways: 33% FHA, 32% cash, 29% conventional, 4% VA.

2009-07-25T13:17:00.000-07:00

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!!

2009-07-25T12:50:00.000-07:00

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!!

2009-07-22T20:15:00.000-07:00

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!!

2009-07-18T18:04:00.000-07:00

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.
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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!!

2009-07-18T17:59:00.001-07:00

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.
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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!!

2009-07-15T14:14:00.000-07:00

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.

2009-07-13T17:54:00.001-07:00

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!!

2009-07-13T17:42:00.000-07:00

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!!

2009-07-06T18:13:00.001-07:00

Thanks to Tricia Wills from Equity Title for these July 1 graphs of inventory of homes in the across the Valley.

2009-07-03T18:50:00.000-07:00

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!!

2009-07-03T18:25:00.000-07:00

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!!

2009-06-20T13:08:00.001-07:00

Thanks to Nathan Jensen of Express One Mortgage for some updated info on the $8000 homebuyer tax credit that is available. This should clear up some of the issues surrounding this program!!
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DONOVAN ANNOUNCES RECOVERY ACT'S HOMEBUYER TAX CREDIT CAN IMMEDIATELY HELP THOUSANDS OF FIRST-TIME HOMEBUYERS TO BUY A HOMEFHA

plan will stimulate new home sales and help stabilize housing market

WASHINGTON - Speaking to the National Association of Home Builders Spring Board of Directors Meeting, U.S. Housing and Urban Development Secretary Shaun Donovan today announced that the Federal Housing Administration (FHA) will allow homebuyers to apply the Obama Administration's new $8,000 first-time homebuyer tax credit toward the purchase costs of a FHA-insured home. Donovan said that today's action will help stabilize the nation's housing market by stimulating home sales across the country.

The American Recovery and Reinvestment Act of 2009 offers homebuyers a tax credit of up to $8,000 for purchasing their first home. Families can only access this credit after filing their tax returns with the IRS. Today's announcement details FHA's rules allowing state Housing Finance Agencies and certain non-profits to "monetize" up to the full amount of the tax credit (depending on the amount of the mortgage) so that borrowers can immediately apply the funds toward their down payments. Home buyers using FHA-approved lenders can apply the tax credit to their down payment in excess of 3.5 percent of appraised value or their closing costs, which can help achieve a lower interest rate. To read the FHA's new mortgagee letter, visit HUD's website.
"We believe this is a real win for everyone," said Donovan. "Today, the Obama Administration is taking another important step toward accelerating the recovery of the nation's housing market. Families will now be able to apply their anticipated tax credit toward their home purchase right away. At the same time we are putting safeguards in place to ensure that consumers will be protected from unscrupulous lenders. What we're doing today will not only help these families to purchase their first home but will present an enormous benefit for communities struggling to deal with an oversupply of housing."

Currently, borrowers applying for an FHA-insured mortgage are required to make a minimum 3.5 percent downpayment on the purchase of their home. Current law does not permit approved lenders to monetize the tax credit to meet the required 3.5 percent minimum down payment, but, under the terms of today's announcement, lenders can now monetize the tax credit for use as additional down payment, or for other closing costs, which can help achieve a lower interest rate. Buyers financing through state Housing Finance Agencies and certain non-profits will be able to use the tax credit for their downpayments via secondary financing provided by the HFA or non-profit. In addition to the borrower's own cash investment, FHA allows parents, employers and other governmental entities to contribute towards the downpayment. Today's action permits the first-time homebuyer's anticipated tax credit under the Recovery Act to be applied toward the family's home purchase right away. Unlike seller-funded down-payment assistance, which was a vehicle for abuse, this program will allow homebuyers to shop for the best home price and services using their anticipated tax credit.

According to estimates by the National Association of Home Builders, the Administration's homebuyer tax credit will stimulate 160,000 home sales across the nation - 101,000 of which will be first-time buyers who will receive the credit. Another 59,000 existing homeowners will be able to buy another home because a first-time buyer purchased their home. Given FHA's current market share, it's estimated that thousands of families will be able to purchase a home by allowing the anticipated tax credit to be applied toward their purchase together with an FHA-insured mortgage.

Homebuyers should beware of mortgage scams and carefully compare benefits and costs when seeking out tax credit monetization services. Programs will vary from organization to organization and borrowers should consider whether the services make sense for them, as well as what company offers the most suitable and affordable option.

For every FHA borrower who is assisted through the tax credit program, FHA will collect the name and employer identification number of the organization providing the service as well as associated fees and charges. FHA will use this information to track the business closely and will refer any questionable practices to the appropriate regulatory agencies, as necessary.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
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!!

2009-06-20T13:00:00.000-07:00

Here are the mid month graphs of inventory, courtesy of Sarah Boelter of Equity Title.

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!!

2009-06-04T20:16:00.000-07:00

Here are some graphs from Sarah Boelter at Equity Title that give you a good look at inventory.

2009-06-03T11:12:00.001-07:00

Great Statistics to give guidance on the current market!

Phoenix April Home Sales/Median Prices/Foreclosure Resales/%Absentee Buyers/%FHA
April sales of existing homes in the Phoenix area rose to the highest level for any month in nearly three years as absentee buyers and those using government-insured FHA loans accounted for the vast majority of purchases. The median price paid for all new and existing homes sold dropped to $125,000, the lowest in a decade, a real estate information service reported.

Distressed sales once again dominated the market. Sixty-five percent of the Phoenix-area houses and condos that resold in April had been foreclosed on in the prior 12 months, according to MDA DataQuick. The San Diego-based firm tracks real estate trends nationally via public property records.

A total of 9,012 new and resale homes closed escrow in the combined Maricopa-Pinal counties metropolitan area in April, up 8.6 percent from March and up 27.1 percent from a year ago. Resales of houses and condos combined have risen on a year-over-year basis for 10 consecutive months, and the April resale total of 8,152 was the highest for any month since June 2006.
Stronger home sales across much of the West have been driven mainly by bargain hunters. Most are first-time buyers and investors choosing either foreclosure resales or other lower-cost homes in hard-hit neighborhoods. Last month about 46 percent of all Phoenix-area buyers used government-insured FHA loans, a popular choice among first-time buyers. Absentee buyers made up 37.4 percent of all purchases – a relatively high percentage in the West. Absentee buyers include investors, mainly, as well as other buyers whom public records show will have their property tax bills go to an address other than the one for the home they just purchased.
Last month’s year-over-year gains in house and condo resales offset a year-over-year decline in sales of newly constructed homes, which posted a drop of 57.0 percent. The 860 homes builders sold last month marked the lowest new-home tally for an April in more than a decade.
The median price paid last month for all new and resale houses and condos combined fell to $125,000, down 3.8 percent from March and down 41.6 percent from a year ago. The 3.8 percent month-to-month decline in the median last month matched the decline in March, which compared with month-to-month declines averaging 5.5 percent in the 6 months ending in February this year.

It’s unclear whether milder month-to-month declines in the median sale price in Phoenix and some other Western markets foretell a price plateau. Depending on their severity, ongoing job losses and foreclosures could undermine any trend toward near-term price stability.
Last month’s $125,000 median stood 52.7 percent below the Phoenix area’s peak $264,100 median reached in June 2006. The median has fallen on a year-over-year basis for 27 consecutive months.

An alternative price gauge analysts watch shows sharper price declines: The median paid per square foot for existing single-family (detached) houses fell to $64 in April, down 47.6 percent from a year ago and down 62.6 percent from a peak $171 in June 2006.

Across the West, year-over-year declines in the median sale price - the point where half of the homes sold for more and half for less – have sometimes overstated the extent to which the value of the typical home has fallen. It’s because the median is being tugged lower not just by price depreciation but by shifts in the types of homes selling. For example, more of today's sales involve foreclosures, which tend to sell at a discount and be concentrated in more affordable areas. Also, the August 2007 credit crunch made larger "jumbo" mortgages more expensive and harder to obtain, which has led to sluggish sales – in some cases the lowest in many years – in higher-priced neighborhoods. (A dropoff in high-end sales can pull down the median.)

Media calls: Andrew LePage (916) 456-7157
Copyright 2009 MDA DataQuick Information Systems. All rights reserved.

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

2009-05-30T12:44:00.000-07:00

First-time buyers grab foreclosures
by Catherine Reagor - May. 27, 2009 12:00 AMThe Arizona Republic
Metropolitan Phoenix's foreclosure home-buying frenzy has caught the attention of other parts of the country. Some national housing analysts are labeling the Valley's recent upswing in home sales another speculator- driven boom. But while investors finding bargains on foreclosure homes did help restart the area's housing market in January and February, speculators aren't dominating the scene as they did during the boom of 2004-06.

In April, about 19 percent of all Valley homes were purchased by investors, according to real-estate analyst Mike Orr. He works with the Arizona Regional Multiple Listing Service and the Information Market to analyze real-estate data daily for the Cromford Report.
During the boom, investor purchases accounted for 35 percent to 40 percent of metro Phoenix's record home sales. Now, first-timers are the Valley's fastest growing group of home buyers. One housing-market watcher believes first-time buyers soon will account for half of the area's home sales.

The federal housing plan's $8,000 incentive for first-time buyers and the state, city and county Neighborhood Stabilization programs to help people buy foreclosure homes as their primary residences is helping shift the market away from investors. Home sales are at record levels in many Valley communities, and prices are inching up. The Valley's median home price is at $116,500, up from a low of $115,000 at the end of April. That's a 1.3 percent increase, which may seem paltry compared with the drop in Valley home prices during the past few years. But a year of those monthly gains could become a 15.6 percent annual increase in home prices.
The median price-per-square-foot of metro Phoenix home sales in May climbed to $84.86, up 2.4 percent from the low it hit in April. Pending sales prices are following the same upward trend.

"There's a buying frenzy for Valley homes priced below $150,000," Orr said. "Many homes in that prices range are getting multiple offers." Investors buying Valley homes now are different than the speculators of the boom. A few years ago, most investors put very little down so it was easier for them to walk away and let homes go into foreclosure. Now most investors are paying cash. Investors who get financing are required to put down hefty down payments, which they aren't as likely to walk away from. This is a different housing market, with more conservative investors and mortgages than the Valley experienced during the boom years.

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!!

2009-05-30T12:41:00.000-07:00

I just got this email from Mike over at Express One Mortgage. Interesting info on the First Time Home Buyer Tax Credit!

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First-Time Home Buyer Tax Credit for Closing will Move Market
WASHINGTON (May 29, 2009) – Consumers across the country can now take advantage of a Federal Housing Administration program to allow qualified home buyers to apply the $8,000 tax credit when purchasing a home. FHA will now permit its lenders to provide a short-term bridge loan that will let qualified home buyers use the tax credit to either make a larger down payment above the FHA required 3.5 percent, cover closing costs, or buy down their interest rate.
“A true housing recovery depends on buyers returning to the market and reducing inventory,” said National Association of Realtors® President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth. “Since many of the homes available are lower priced starter homes, the ability for individuals to use the tax credit at closing should have a meaningful impact on home sales and values and will allow thousands of families to achieve the dream of homeownership.”
Shaun Donovan, secretary of the Department of Housing and Urban Development, announced the change today. In an address to several thousand Realtors® gathered two weeks ago at NAR’s Real Estate Summit: Advancing the U.S. Economy, Donovan announced HUD’s plan to offer the tax credit as down payment assistance. Donovan detailed the modifications to that original proposal and announcement.
“We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans,” Donovan said. According to Donovan, the FHA’s approved lenders will be permitted to “monetize” the tax credit through short-term bridge loans allowing eligible home buyers to access the funds immediately at the closing table.
NAR has supported monetization of the tax credit, which was part of an Obama administration housing stimulus plan enacted earlier in the year. NAR petitioned HUD to allow home buyers to use the $8,000 tax credit to help them cover down payment or closing costs to bring new home buyers to the market and stimulate home sales.
“We think this is a good program; our members have been getting many inquiries from potential buyers about it,” McMillan said. “NAR is pleased that this enhancement has been made to the administration’s housing recovery program. As we have heard before, there can be no economic recovery without a housing recovery. With an abundance of inventory, reduced home prices, historically low interest rates and now the availability of the tax credit at closing, we expect to see the housing market further stabilize and improve.”
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.

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!!

2009-05-28T21:03:00.000-07:00

2009-05-28T21:00:00.000-07:00

Study Buoys Mortgage Modification
Finding May Ease Concerns That Borrowers Would Fall Behind on Loans
By RUTH SIMON

Cutting financially troubled borrowers' monthly mortgage payments by more than 10% reduces the chances that they will fall behind again after their loan is modified, a study found.
While modifications that result in lower payments are increasing, nearly half of all loan workouts still result in the same or higher payments, the study found.
The report, released Friday by the Office of the Comptroller of the Currency and the Office of Thrift Supervision, comes as mortgage companies are preparing to modify loans under the Obama administration's foreclosure-prevention plan, which provides financial incentives to encourage mortgage companies and investors to reduce borrowers' mortgage-related payments to 31% of income.

It could help allay concerns that scores of borrowers whose loans are reworked will fall behind again on their mortgages, leading to higher losses for lenders and investors who hold these loans.
"The administration plan is premised on the notion that if you lower the payment enough you can produce sustainable modifications," said Comptroller of the Currency John C. Dugan. The report, he added, "provides evidence in support of that thought."
The report comes as a weak economy and falling home prices are creating problems for a number of borrowers, including many who previously had good credit. The biggest percentage jump in troubled loans was for prime mortgages, with 2.4% of these loans more than 60 days past due at the end of the fourth quarter, up from 1.1% at the end of the first quarter. The portion of subprime loans that were more than 60 days past due climbed to 16% from 11% during this same period. Overall, more than one in 10 loans were 60 days past due, the report found.
Redefault rates for modified loans were high and rose during the first three quarters of 2008, the report found, with loans modified in the third-quarter showing the highest redefault rates.
Some borrowers fall behind again because of job loss or other problems, but whether or not the borrower gets payment relief also appears to play a role in the outcome. The redefault rate was just 26% after nine months when monthly payments were cut by more than 10%, compared with about 50% when the payment increased or remained the same.
Loan modifications that leave the payment unchanged or higher "in better times were more sustainable," Mr. Dugan said. "In this climate, leaving mortgage payments unchanged or increasing them is resulting in too high of a risk of redefault."
Modifications can result in higher monthly payments because, by the time loans are worked out, borrowers often are behind on their payments. Lenders frequently have been adding these past-due amounts, which can include principal, interest, taxes and insurance, driving monthly payments higher.
The OCC has told the lenders it regulates that they "need to review their programs" and make sure that modifications implemented in 2008 and in the future result in loans that are affordable and sustainable, Mr. Dugan said. Lenders also have been told to review the modifications they did last year and "see if there are classes of borrowers" whose modifications may be further restructured to make them more effective, he said.
The report covers modifications by the 13 large banks and thrifts that are now owned by nine bank-holding companies. These firms, which include Bank of America Corp., J.P. Morgan Chase & Co. and Citigroup Inc., service about two-thirds of mortgages outstanding.
Servicers have stepped up their efforts to modify loans and reduce borrowers' payments in response to pressure to reduce foreclosures. The percentage of modifications that reduced loan payments by more than 10% increased to 37% in the fourth quarter from 26% in the third quarter. Still, roughly one in four borrowers saw their payments increase after their loan was modified.
Mortgage servicers have been more successful modifying loans that are held on their own books than those that are owned by mortgage investors. Nearly half of investor loans were at least 60 days delinquent nine months after they were modified compared with about 30% of loans that are held in bank portfolios. Servicers said they have more flexibility to rework loan terms for mortgages they own than for those held by investors.

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!!

2009-05-28T20:50:00.000-07:00

Obama's Loan Modification Plan: 7 Things You Need to Know
The White House releases fresh details on its plan to save the housing market
By Luke Mullins
Posted March 4, 2009
At the heart of the President Barack Obama's ambitious plan to rescue the housing market is the conviction that restructuring distressed mortgages will keep struggling borrowers in their homes and help insert a floor beneath plummeting property values. With $75 billion dedicated to reworking troubled loans, that's a big bet—especially considering that a top banking regulator said last December that almost 53 percent of loans modified in the first quarter of 2008 went bad again within six months. But supporters argue that mortgage modifications need to be properly engineered to work—and many early ones weren't. To that end, the Obama administration on Wednesday unveiled fresh details on its plan to restructure at-risk loans and help as many as four million home owners avoid foreclosure. Here are seven things you need to know about Obama's loan modification program.

1. Payments, not prices: The plan centers on the belief that struggling borrowers will stay in their homes—even as values decline sharply—as long as they can make their monthly payments. Although not everyone agrees with this, billionaire investor Warren Buffett endorsed the philosophy in his most recent letter to shareholders. "Commentary about the current housing crisis often ignores the crucial fact that most foreclosures do not occur because a house is worth less than its mortgage (so-called “upside-down” loans)," Buffett wrote. "Rather, foreclosures take place because borrowers can’t pay the monthly payment that they agreed to pay."
2. Thirty-one percent: To that end, the administration's plan requires participating loan servicers to reduce monthly payments to no more than 38 percent of the borrower's gross monthly income. The government would then chip in to bring payments down further, to no more than 31 percent of the borrower's monthly income. In lowering the payment, the servicer would first reduce the interest rate to as low as 2 percent. If that's not enough to hit the 31 percent threshold, they would then extend the terms of the loan to up to 40 years. If that's still not enough, the servicer would forebear loan principal at no interest. The plan does not, however, require servicers to reduce mortgage principal, which Richard Green, the director of the Lusk Center for Real Estate at USC, considers a shortcoming. "For underwater loans, if you don't write down the balance to be less than the value of the house, people still have an incentive to default," Green says. "Writing down the principal first instead of last—which is what [the Obama administration is] proposing—makes sense to me."
3. Cash incentives: To encourage participation, servicers will be paid $1,000 for each modification and will get an additional $1,000 payout each year for as many as three years, as long as the borrower continues making payments. Borrowers, meanwhile, can get up to $1,000 knocked off the principal of their loan each year for as many as five years if they make their payments on time. Neither party can receive the cash incentives until the modified loan payments have been made for at least three months.
4. Financial hardship: The Obama administration is pitching its plan as an effort to help responsible homeowners ensnared in the historic housing slump and painful recession—not speculators. As such, only owner-occupied, primary residences with outstanding principal balances of up to $729,750 are eligible. Occupancy status will be verified through documents, such as the borrower's credit report. In addition, the program is designed to target homeowners who are undergoing "serious hardships"—such as a loss of income—which have put them at risk of default. To participate, borrowers will have to sign an affidavit of financial hardship and verify their income with documents. "If we would have had such stringent verification over the last four or five years, we probably wouldn't be in as bad a position as we are in," says Richard Moody, the chief economist at Mission Residential. But while Moody has no objection to such verification, obtaining documents from so many homeowners could be an onerous effort. "It's going to be a very time-consuming process," he says. Only loans originated on or before Jan. 1, 2009, are eligible, and modified payments will remain in place for five years. Now that the administration's plan is out, lenders are free to begin modifying loans.
5. Net present value: To determine if a particular mortgage will be modified, the servicer will perform a so-called net present value test. The test compares the expected cash flow that the loan would generate if it is modified with the expected cash flow it would generate if it isn't. If the modified loan is expected to produce more cash flow for the mortgage holder, the servicer is to restructure the loan. Howard Glaser, a mortgage industry consultant and a U.S. Department of Housing and Urban Development official during the Clinton administration, called this component of the plan "clever," arguing that it would work to ensure broad participation. "When you apply the formula, the loans that are modified are the ones that are in the best economic interest of the investors to modify," Glaser says. "The federal subsidy for the payment on the modification…tips the scale toward modification as a better deal for the investor."
6. Second liens: The Obama plan also addresses the issue of second liens—such as home equity loans or home equity lines of credit—by offering incentives to extinguish them. But key details on this component of the plan remained unclear. "Distinguishing the second lien is really important," Green says. "[But] exactly how they are going to convince the second lien holder to do this is not clear to me at all."
7. Will it work? Moody argues that while the plan may reduce foreclosures for primary residences, it could lead to a spike in defaults for another group of homeowners. Although he supports the administration's efforts to focus the initiative on primary residences, Moody notes that "it could be the case that a lot of [real estate speculators] have been just hanging on waiting to see exactly what the details are of this [plan]," Moody says. Now that it's clear the Obama plan leaves speculators out, "we could actually see a spike in foreclosures or at least mortgage defaults among this group."
Glaser, meanwhile, worries that lenders may soon be overwhelmed by inquiries from homeowners looking to participate. "Starting today, millions of borrowers are going to start to call their lenders to see whether or not they are eligible," he said. "And I'm not sure that the financial services industry has the capacity to handle these inquiries."

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!!

2009-05-15T19:52:00.000-07:00

Here is another great article by Mary Ellen Kohut on the role of appraisers in real estate transactions.
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Appraisals have become the grizzly bear in the zoo of lending. New York Attorney General, Andrew Cuomo, determined the housing crisis was caused by appraisers and their relationship with real estate agents and lenders. Legislation was passed to keep lenders, agents and borrowers all separated from the dangerous and evil appraisers. In addition new tweaked guidelines to determine value have eliminated the “most beautiful house on the planet” key and replaced it with foreclosure and short sale trends. The sellers that think their house is worth more because it is not a bank owned property better think again. Appraisers are now required to note recent REO’s and short sells in their report. If the neighborhood is foreclosure challenged, more than just one bank-owned in a neighborhood, the appraiser will be chastised if they try to bring the value up by using comps outside the subdivision...or the lender may just require a second appraisal at the buyer's expense. Builders will no longer be able to direct business to their “chosen” appraisers specifically used for their communities. The underwriter’s sworn duty to the bank making the loan is to scrutinize appraisals as well as the credit worthiness of the buyer. They now have an automated system to help confirm value. Most conventional loans are requiring a desk review or a field review. A desk review is the process of the underwriter sending an appraisal over to an independent appraiser to validate the report. A field review is a completely new appraisal. Having a strong borrower or putting an obscene amount of money down will not weigh into the decision. Back in 2005, if the buyer agreed to pay the sales price offered by the seller, the appraiser typically would make it work and with the trend at that time for rapidly appreciating housing values, underwriters rarely questioned the reports. With the combination of enforced underwriting guidelines and the current trend of declining housing values, the lending process can get knarly. Trying to get the value up by screaming and yelling or holding your breath until you pass out does not work, lord knows I’ve tried. Today’s lending environment is a different animal and we are going to have to wrestle through it until the economy turns.

FYI: Lenders were scratching their heads in amazement when FHA announced Wednesday that they would allow buyers who qualify for the $8000 First-Time Home Buyer Tax Credit, to use it toward the 3.5% required down payment. The government did away with the down payment assistance programs in October due to the number of foreclosures for buyers that did not have any skin in the game. And now they would allow Uncle Sam to gift the money? As quickly as the mortgagee letter appeared it was yanked from the web site with an “oh, never mind.” Stay tuned to see if reappears.
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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!!

2009-05-15T17:38:00.000-07:00

One of every 374 US homes received a filing during the month, the highest monthly rate that Realty Trac, an online marketer of foreclosed properties, has recorded in four + years of record keeping. "April was a shocker" said Rick Sharga, a spokesman for Realty Trac, "I would have bet on a dip because March foreclosures were so high". Instead filings inched up 1% from March and rose 32# compared with April 2008. There were 63,900 bank repossessions, the last stop in the foreclosure process. More than 1.3 million homes have now been lost to foreclosure since the market meltdown began in August 2007.

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!!

2009-05-13T19:11:00.000-07:00

I just got this email from Mark Sheck of Cherry Creek Mortgage about recent changes in the lending industry regarding first time buyers and tax credit. Read below for the full story.
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You may have heard that FHA is going to allow non-profits to issue bridge loans to first time buyers that can be repaid with the tax credit they would receive after filing their tax returns. This information was provided in the form of a mortgagee letter from HUD dated Monday, May 11th. This would allow first time home buyers the ability make use of this tax credit for their down payment. This would be especially helpful to customers who maybe do not have a parent or relative able to gift them down payment money.

For some reason, we are not really sure why, FHA has temporally rescinded this mortgagee letter. As more information becomes available I will be sure to pass it along.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

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!!

2009-05-12T19:18:00.000-07:00

This just came across my desk from Mark over at Express One Mortgage. Interesting info for hopeful buyers.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Hello to all! I wanted to quickly pass along some information that is sure to affect us all. The following was just announced:

Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, said that the Federal Housing Administration is going to permit its lenders to allow homeowners to use the $8,000 tax credit as a downpayment. According to Donovan, the FHA's approved lenders will be permitted to 'monetize' the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table.

Now all of this being said, how will they monetize the Tax Credit, you ask

I HAVE NO IDEA how it will work, no guides or descriptions of the program have been released. BUT you can bet this will take some time to implement, they first must determine who will be issuing the Bridge Loan then they must help lenders implement it. So when I get the answers I will be sure to pass along to you.
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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!!

2009-05-11T19:15:00.000-07:00

Beware of reporters who post articles like this saying things are working… the moratorium itself is creating this inflated bubble of hope… 2 more waves of foreclosures loom on the horizon. ~Erika
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Drop in metro Phoenix foreclosures

Valley foreclosures and pre-foreclosures both fell in April, while the number of foreclosure cancellations climbed. All good indicators for the housing market as long as they continue.

Trustee notices, or pre foreclosures, fell to 9,092 in April from 10,689 in March, reports data research firm Information Market.

Actual foreclosures, trustee deeds, fell to 3,103 last month from March’s 3,377. Cancellations fell by 500 in April to 2,668.

Also, fewer foreclosures are going back to the lender, which could signal more short sales going through and investors buying homes at trustee auctions. About 89 percent of Valley foreclosures went back to the lender in April. In March and for most of the past year, about 95 percent of all foreclosures have gone back to the lender.

The extension of big lender moratoriums on foreclosures and the federal push for more loan modifications are likely both working. But lenders could also be holding back some foreclosure properties so they don’t flood the market again and push prices farther down.

Auction house REDC had an auction last week for almost 200 Valley foreclosure homes. The opening bids started as low as $500 on some properties in Phoenix’s 85006 ZIP code.

Tom Ruff, Information Market’s analyst, said its possible foreclosures could climb again this month or in June.
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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!!

2009-05-10T20:21:00.000-07:00

Current Greater Phoenix Area Real Estate Market

There are many things currently happening that both sellers and buyers must be aware of before & during a sale or purchase. Our team is staying on top of these developments on a daily basis. Some of the issues currently at hand are:

Average length of time it is taking to sell a home and what can be done to shorten it;
strong marketing is needed to help a home stand out from the rest.

If you are seriously considering the purchase or sale of a home then you deserve an aggressive Realtor to represent you! We're here so feel free to call with any questions or concerns about our current market. We’d be happy to help you or anyone you know get the best deal possible!

2009-05-06T19:38:00.000-07:00

Here are some graphs on inventory levels throughout the valley!

2009-05-06T06:29:00.000-07:00

Have you been wondering what a home is worth in this changing housing market? Are you thinking of buying a home and want to know other home sale prices? Check the value of homes recently sold in the Phoenix, Arizona, area since 2003. Search for home in metro Phoenix, Pinal and Maricopa Counties:

Valley Home Values

Now is a GREAT time to buy! Call me and our team can assist you in taking advantage of these prices we haven't seen since 2003!

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!!

2009-05-05T19:36:00.000-07:00

You may have heard the rumors about the gov’t shutting down the FHA, please click on the link to watch the video for clarification on this.

https://www.thinkbigworksmall.com/mypage/tbws/8265/149963

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!!

2009-05-02T12:34:00.000-07:00

Well, the first 100 days of the Obama administration has come and gone. Here is an article by Mary Ellen Kohut from TMA discussing the economics and the market.

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President Obama’s first 100 days probably were not what he imagined when he began courting the American public for the Presidency in 2007. The stock market was over 14,000, unemployment was at 4.5% and large bonuses with shiny expensive cars were a part of the American Dream. Our charismatic, Harvard educated leader’s term is being compared to that of President Franklin D. Roosevelt our 32nd President from 1933 to 1945. When President Roosevelt began his campaign for the presidency, our country was in the dark throws of the Great Depression. This visionary man implemented social security, appointed the first woman to his cabinet, and developed work programs so American’s could put food on their tables. One of his first triumphs as president was to repeal the 21st Amendment Prohibition Act, or legalize alcohol consumption.

President Obama is still in the honeymoon phase of his presidency although the stock market plunged to below 8,000, and unemployment rose to 8.5%. He successfully guided our Navy Seals to fight pirates, (not the “aahrr matey" of lore but mercenaries on a mission of death... and none of them look like Johnny Depp) and has improved our global image while introducing his political platforms. With all of our big problems it has given our President a smaller library to focus his talk of reform. The economy has provided him with an opportunity to pass his massive stimulus bill and probably will allow the implementation of a national health care. Immigration is a spicy subject and was brought to the forefront this week with demands to close our borders to contain the swine flu. After all, if you get rid of the Mexicans you will get rid of the flu. I always thought that germs were the reason for the illness but in High School I was too concerned about my hair and my date on Friday night so I probably wasn’t paying attention in class when the teacher said it was the Mexicans. President Obama’s exuberant confidence in the United States and his programs is contagious. With any relationship we must believe in our partner…..until proven otherwise.

FYI: All conventional appraisals are now required to be ordered through specific Fannie Mae approved Web sites. No exceptions. You can thank Attorney General Andrew Cuomo for determining that "ground zero" for the housing crisis was all due to the appraisers.
Interest rates are still incredibly low and we are seeing a lot of first time home buyers getting into the buying market and a lot of people who already have mortgages looking to refinance.

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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!!

2009-05-01T19:55:00.000-07:00

You may have heard about the HVCC which requires all appraisals to be ordered through a 3rd party thus ending the communication between a loan officer and an appraiser on CONVENTIONAL loans. This goes into affect TODAY. Click on the link below to watch a short video on this…

https://www.thinkbigworksmall.com/mypage/tbws/7967/149963

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!!

2009-04-27T18:55:00.001-07:00

Do you ever wonder what city ranks as the most family friendly in a state? Are you thinking of moving to a new state and would like this info to make a decision on which city? Well, here's a link that could help you! It tells you which cities are ranked "Most family friendly" and gives you data on home prices in those cities. Click the link below to see more info.

http://realestate.aol.com/home-values/family-friendly-neighborhoods

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!!

2009-04-24T18:26:00.000-07:00

I received this email from Rudy Benitez of Lion's Gate Mortgage. It is talking about the new appraisal HVCC code that goes into effect May 1st. There is a link included for more information.

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Hi Friends,

Happy Thursday and I hope life and work are both going wonderfully. Just want to drop you a quick not regarding the new appraisal HVCC Code. I have received dozens of calls/emails so here is the simple breakdown of what this entails:

-Lenders will now require that we as a broker request the appraisal through the lender directly. We, as the mortgage broker, can no longer have any direct communication with the appraiser who is scheduled to review the property. We must go through the lenders preferred appraisal group. Keep in mind that you as the realtor are still able to have open communication with the appraiser to ensure water/power are on, doors are open for their entry to property, etc.

-Please keep in mind that now more than ever, appraisers are under the microscope. Most appraisers are beginning to really note any minor deficiencies within the home. Therefore, if you have broken windows, water leaks, exposed wires, and so forth these must be fixed prior to their arrival.

-Also, please note that I still have access to ValueCheck so I can pull comp checks on properties for you if need be for free.

The link below is a detailed FAQ regarding the new HVCC Code. There will be a bit of a learning curve for us all, but like all changes we see in real estate, we will all adjust and things will be fine. Thank you all for your continued support. We have received 78 referrals in April thus far so I am sincerely thankful. Have a pleasant and blessed evening and please call on me if I may help.

https://www.efanniemae.com/sf/guides/ssg/relatedsellinginfo/appcode/pdf/hvccfaqs.pdf

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

2009-04-21T22:47:00.000-07:00

# 22 on the list of 25 Top Cities/Areas appreciating..... drum roll please....

Phoenix Metro Area, Paradise Valley, Ariz

Blue Chip Neighborhood:Paradise Valley, Ariz. (Camelback Estates)Found Within ZIP Code(s): 85253Five-Year Price Growth: 71.89%Average Price Growth per Year: 14.37%Median House Value: $1,532,500See Area Map + More Information

Very suprising to me.... see story here

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

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

2009-04-20T19:04:00.000-07:00

This report is from Christopher Self of the Talon group and discusses the current stats on listing inventory. Thanks Chris for the stats!
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Our listing inventory is dwindling quickly, as you can see in the chart below. We experienced a 31% decrease of months’ supply in March; does this actually mean we are at the BOTTOM??

Well, I'd like to say YES... BUT... I know something many other people right now havent figured out just yet- many banks have a moratorium on foreclosures right now, seems like it hasnt stopped homes actually being foreclosed on BUT the banks are holding all of their inventory hoping the government will bail them out and remove the bad debt from their books. New listings should begin to hit the market again by end of May and we have been told by asset managers at several LARGE banks that we need to be prepared for the level to grow quickly again.

SOOOO just because we are seeing more multiple offers on bank owned homes, bidding wars, and prices being inflated... don't expect it to last all summer long - if the house is in good condition you do need to expect that there will be more than one offer in to the bank. These homes are normally well priced vs. the work needing done so they are selling FAST - and they have been for the past 18 months, not just recently!

New Listings Active Listings Sold Listings Months Inventory
Mar/2009 14,269 51,873 7,622 6.81
Feb/2009 12,726 53,394 5,434 9.83
Jan/2009 13,813 55,292 4,690 11.79
Dec/2008 11,954 57,379 5,459 10.51
Nov/2008 12,456 57,279 4,318 13.27
Oct/2008 14,678 56,570 5,335 10.60
Sep/2008 14,295 55,329 6,073 9.11
Aug/2008 13,588 55,406 5,556 9.97
Jul/2008 13,527 56,009 5,862 9.55
Jun/2008 13,559 57,344 5,674 10.11
May/2008 13,062 59,176 5,591 10.58
Apr/2008 13,827 60,230 4,809 12.52
Mar/2008 13,520 59,957 4,262 14.07
Feb/2008 13,068 59,497 3,440 17.30
Jan/2008 16,060 56,998 2,876 19.82
Dec/2007 8,976 58,610 3,340 17.55
Nov/2007 11,670 60,616 3,313 18.30
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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!!

2009-04-20T18:48:00.000-07:00

So what is happening in the market these days? Is the economic stimulous packages recently put into play helping? It can be hard to know what is going on. But, a few things are being said about recent events and trends in the market. The story below is a look at the housing trends and market and whether we are "at the bottom" as provided by Monica Pruett Smith, Sr. Mortgage Consultant for American Mortgage Group.

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Housing Bottom On The Horizon:

What is a housing bottom? One of the primary reasons that we have experienced a housing slump is because we have had more supply of homes than we have demand. A housing bottom occurs when the supply and demand start to normalize and once we reach the bottom, we will start to see price appreciation again.

Let’s take a look at last week’s events that are starting to shine a light on our housing bottom. Frank Nothaft, Chief Economist for Freddie Mac stated that he felt that U.S. home sales are near a bottom. Both New Housing Starts and Building Permits continued to decline which helps to lower our supply. The University of Michigan’s Consumer Confidence Report was at its best levels since September which is interesting considering our unemployment levels, but that helps the demand side of the equation.

Remember, you make money when you buy your house not when you sell it. With interest rates at or near 50 year lows and with loan programs that only require 3.5% down, market conditions are right to finally make your move before the market turns around…because once it does turn around…you’ve already missed your opportunity.

What happened to rates last week?

The Mortgage Backed Securities (MBS) market had another roller coaster week.

From Monday to Wednesday we gained +43BPS in pricing which helped 30 year fixed mortgage rates fall to some great levels.

But from Wednesday to Friday we lost -40BPS in pricing which increased rates and we ended up right where we stated on Monday.

What to watch out for this week:

The following are the major economic reports that will hit the market this week. They each have the ability to affect mortgage rates. I will watch these reports closely for you and let you know if there are any big surprises.

I know you are busy and it is virtually impossible for you to keep track of what is going on in the economy. I monitor the trading of Mortgage Backed Securities; the only thing conventional mortgage rates are based upon. So I know if there is going to be a trend reversal in mortgage rates.

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2009-04-09T18:43:00.000-07:00

Here are some great graphs that show the percentage of Bank Owned (REO) property sales vs. traditional home sales in the recent months, courtesy of Bob Yarrow.

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Of the monthly sales reported in Maricopa County, what percentage can be attributed to REO properties? The two graphs below are based upon ARMLS sales data for March 2009.

Of the single family detached resale home sales reported through ARMLS for the month of March 2009, 68% of the listings were noted as "Lender Owned," the same as last month.

The graph below shows the percentage of REO sales over the past two years. In September 2007, that number was less than 10% of total sales, and you can see the steady climb of REO sales from that point. January saw the biggest jump in the REO sales percentage as it rose from 56% in December to 68% in January. The March percentage remained the same as January and February.

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!!

2009-03-15T12:45:00.000-07:00

Here is a great email from Mark Sheck. What great things to think about in this time. He points out some great things, the fact that homes ARE selling and there are opportunities out there! A large part of our perception is our mindset. Lets stay positive and make it through this stronger financially than before! Thanks Mark for a GREAT reminder!!
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I am not sure about you, but I remember the last recession back in 2001, when my motto was:

“I understand there is a recession going on, I choose not to participate”

I am not saying we all should run around with rose color glasses on, but let’s face a person’s mindset has a lot to do with how the face each and every day. There is a difference between staying positive and living in a fantasy world.

Haven’t you noticed how the media has everyone thinking the “sky is falling” ?

It doesn’t have to be that way, I have been on a CNBC diet the last several months….I don’t watch it anymore. When I had it on first thing in the morning to see what was happening, I found myself coming to work in a down mood, that’s because it was depressing me. Now don’t misunderstand me, I keep up with things that are happening in the market so that I can continue to give your clients the very best in service. I just don’t use them as a resource.

With all the bailouts, continued stimulus talk and words like "economic catastrophe" being thrown around, it's easy to get down and wonder how we're going to make it through this historic time.

Let me share the FACTS! People are still buying homes!!!

Check out these statistics of homes sold in 2007, 2008 and January of 2009 which are posted on the Arizona Multiple Listing Service (ARMLS) website.

Year 2007 2008 2009
January 4,389 2,912 4,742
February 4,958 3,448
March 5,990 4,293
April 5,535 4,879
May 5,795 5,656
June 5,438 5,748
July 4,730 5,966
August 4,358 5,725
September 3,435 6,166
October 3,457 5,389
November 3,318 4,412
December 3,420 5,514
Totals 54,823 60,108

In spite of what you may hear from the main stream media, The market is Recovering!!!. We had a 9% increase in sales in 2008 over 2007, and what's really exciting is the last seven months of 2008 saw a 28% increase in sales over 2007. In comparing January 2008 to January 2009, we have seen a 62% increase…..that’s right 62%

Give me a call, and let’s discuss how I might be able to assist you in taking a greater market share. As you are aware, realtors, lenders, title companies are dropping left and right. Only the strong will survive, I know I plan on being here when we come out the other side.

How about you?

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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!!

2009-03-05T19:34:00.000-08:00

Here is an email I got from Brian Yampolsky, owner of the Orion Mortgage Corp. I know the info has changed often and I want to keep you up to date on what is available for those out there who need assistance in refinancing their mortgages. Read below for critical info on the new changes as announced by President Obama.

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Q&A For Borrowers About The Homeowner Affordability and Stability Plan:
& UPCOMING FREE SEMINAR FOR REAL ESTATE AGENTS
The following is taken directly from the U.S. Treasury in regard to the Homeowner Affordability and Stability Plan. It provides answers to many common questions about the new program announced by President Obama to help current homeowners. Full guidelines for the new program are set to be released on Wednesday March 4, 2009.

Borrowers Who Are Current on Their Mortgage Are Asking:

1. What help is available for borrowers who stay current on their mortgage payments but have seen their homes decrease in value?

Under the Homeowner Affordability and Stability Plan, eligible borrowers who stay current on their mortgages but have been unable to refinance to lower their interest rates because their homes have decreased in value, may now have the opportunity to refinance into a 30 or 15 year, fixed rate loan. Through the program, Fannie Mae and Freddie Mac will allow the refinancing of mortgage loans that they hold in their portfolios or that they placed in mortgage backed securities.

2. I owe more than my property is worth, do I still qualify to refinance under the Homeowner Affordability and Stability Plan?

Eligible loans will now include those where the new first mortgage (including any refinancing costs) will not exceed 105% of the current market value of the property. For example, if your property is worth $200,000 but you owe $210,000 or less you may qualify. The current value of your property will be determined after you apply to refinance.

3. How do I know if I am eligible?

Complete eligibility details will be announced on March 4th when the program starts. The criteria for eligibility will include having sufficient income to make the new payment and an acceptable mortgage payment history. The program is limited to loans held or securitized by Fannie Mae or Freddie Mac.

4. I have both a first and a second mortgage. Do I still qualify to refinance under the Homeowner Affordability and Stability Plan?

As long as the amount due on the first mortgage is less than 105% of the value of the property, borrowers with more than one mortgage may be eligible to refinance under the Homeowner Affordability and Stability Plan. Your eligibility will depend, in part, on agreement by the lender that has your second mortgage to remain in a second position, and on your ability to meet the new payment terms on the first mortgage.

5. Will refinancing lower my payments?

The objective of the Homeowner Affordability and Stability Plan is to provide creditworthy borrowers who have shown a commitment to paying their mortgage with affordable

payments that are sustainable for the life of the loan. Borrowers whose mortgage interest rates are much higher than the current market rate should see an immediate reduction in their payments. Borrowers who are paying interest only, or who have a low introductory rate that will increase in the future, may not see their current payment go down if they refinance to a fixed rate. These borrowers, however, could save a great deal over the life of the loan. When you submit a loan application, your lender will give you a "Good Faith Estimate" that includes your new interest rate, mortgage payment and the amount that you will pay over the life of the loan. Compare this to your current loan terms. If it is not an improvement, a refinancing may not be right for you.

6. What are the interest rate and other terms of this refinance offer?

The objective of the Homeowner Affordability and Stability Plan is to provide borrowers with a safe loan program with a fixed, affordable payment. All loans refinanced under the plan will have a 30 or 15 year term with a fixed interest rate. The rate will be based on market rates in effect at the time of the refinance and any associated points and fees quoted by the lender. Interest rates may vary across lenders and over time as market rates adjust. The refinanced loans will have no prepayment penalties or balloon notes.

7. Will refinancing reduce the amount that I owe on my loan?

No. The objective of the Homeowner Affordability and Stability Plan is to help borrowers refinance into safer, more affordable fixed rate loans. Refinancing will not reduce the amount you owe to the first mortgage holder or any other debt you owe. However, by reducing the interest rate, refinancing should save you money by reducing the amount of interest that you repay over the life of the loan.

8. How do I know if my loan is owned or has been securitized by Fannie Mae or Freddie Mac?

To determine if your loan is owned or has been securitized by Fannie Mae or Freddie Mac and is eligible to be refinanced, you should contact your mortgage lender after March 4, 2009.

9. When can I apply?

Mortgage lenders will begin accepting applications after the details of the program are announced on March 4, 2009.

10. What should I do in the meantime?

You should gather the information that you will need to provide to your lender after March 4, when the refinance program becomes available. This includes:

information about the gross monthly income of all borrowers, including your most recent pay stubs if you receive them or documentation of income you receive from other sources

-your most recent income tax return

-information about any second mortgage on the house

-payments on each of your credit cards if you are carrying balances from month to month, ----and payments on other loans such as student loans and car loans.

Borrowers Who Are at Risk of Foreclosure Are Asking:

1. What help is available for borrowers who are at risk of foreclosure either because they are behind on their mortgage or are struggling to make the payments?

The Homeowner Affordability and Stability Plan offers help to borrowers who are already behind on their mortgage payments or who are struggling to keep their loans current. By providing mortgage lenders with financial incentives to modify existing first mortgages, the Treasury hopes to help as many as 3 to 4 million homeowners avoid foreclosure regardless of who owns or services the mortgage.

2. Do I need to be behind on my mortgage payments to be eligible for a modification?

No. Borrowers who are struggling to stay current on their mortgage payments may be eligible if their income is not sufficient to continue to make their mortgage payments and they are at risk of imminent default. This may be due to several factors, such as a loss of income, a significant increase in expenses, or an interest rate that will reset to an unaffordable level.

3. How do I know if I qualify for a payment reduction under the Homeowner Affordability and Stability Plan?

In general, you may qualify for a mortgage modification if (a) you occupy your house as your primary residence; (b) your monthly mortgage payment is greater than 31% of your monthly gross income; and (c) your loan is not large enough to exceed current Fannie Mae and Freddie Mac loan limits. Final eligibility will be determined by your mortgage lender based on your financial situation and detailed guidelines that will be available on March 4, 2009.

4. I do not live in the house that secures the mortgage I'd like to modify. Is this mortgage eligible for the Homeowner Affordability and Stability Plan?

No. For example, if you own a house that you use as a vacation home or that you rent out to tenants, the mortgage on that house is not eligible. If you used to live in the home but you moved out, the mortgage is not eligible. Only the mortgage on your primary residence is eligible. The mortgage lender will check to see if the dwelling is your primary residence.

5. I have a mortgage on a duplex. I live in one unit and rent the other. Will I still be eligible?

Yes. Mortgages on 2, 3 and 4 unit properties are eligible as long as you live in one unit as your primary residence.

6. I have two mortgages. Will the Homeowner Affordability and Stability Plan reduce the payments on both?

Only the first mortgage is eligible for a modification.

7. I owe more than my house is worth. Will the Homeowner Affordability and Stability Plan reduce what I owe?

The primary objective of the Homeowner Affordability and Stability Plan is to help borrowers avoid foreclosure by modifying troubled loans to achieve a payment the borrower can afford. Lenders are likely to lower payments mainly by reducing loan interest rates. However, the program offers incentives for principal reductions and at your lender's discretion modifications may include upfront reductions of loan principal.

8. I heard the government was providing a financial incentive to borrowers. Is that true?

Yes. To encourage borrowers who work hard to retain homeownership, the Homeowner Affordability and Stability Plan provides incentive payments as a borrower makes timely payments on the modified loan. The incentive will accrue on a monthly basis and will be applied directly to reduce your mortgage debt. Borrowers who pay on time for five years can have up to $5,000 applied to reduce their debt by the end of that period.

9. How much will a modification cost me?

There is no cost to borrowers for a modification under the Homeowner Affordability and Stability Plan. If you wish to get assistance from a HUD-approved housing counseling agency or are referred to a counselor as a condition of the modification, you will not be charged a fee. Borrowers should beware of any organization that attempts to charge a fee for housing counseling or modification of a delinquent loan, especially if they require a fee in advance.

10. Is my lender required to modify my loan?

No. Mortgage lenders participate in the program on a voluntary basis and loans are evaluated for modification on a case-by-case basis. But the government is offering substantial incentives and it is expected that most major lenders will participate.

11. I'm already working with my lender / housing counselor on a loan workout. Can I still be considered for the Homeowner Affordability and Stability Plan?

Ask your lender or counselor to be considered under the Homeowner Affordability and Stability Plan.

12. How do I apply for a modification under the Homeowner Affordability and Stability Plan?

You may not need to do anything at this time. Most mortgage lenders will evaluate loans in their portfolio to identify borrowers who may meet the eligibility criteria. After March 4 they will send letters to potentially eligible homeowners, a process that may take several weeks. If you think you qualify for a modification and do not receive a letter within several weeks, contact your mortgage servicer or a HUD-approved housing counselor. Please be aware that servicers and counseling agencies are expected to receive an extraordinary number of calls about this program.

13. What should I do in the meantime?

You should gather the information that you will need to provide to your lender on or after March 4, when the modification program becomes available. This includes information about the monthly gross income of your household including recent pay stubs if you receive them or documentation of income you receive from other sources

-your most recent income tax return

-information about any second mortgage on the house

-payments on each of your credit cards if you are carrying balances from month to month, and payments on other loans such as student loans and car loans.

14. My loan is scheduled for foreclosure soon. What should I do?

Contact your mortgage servicer or credit counselor. Many mortgage lenders have expressed their intention to postpone foreclosure sales on all mortgages that may qualify for the modification in order to allow sufficient time to evaluate the borrower's eligibility. We support this effort.
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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!!

2009-02-22T17:28:00.000-08:00

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!!

2009-02-21T17:36:00.000-08:00

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!!

2009-02-20T17:16:00.000-08:00

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.
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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!!

2009-02-13T17:13:00.000-08:00

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!!

2009-01-25T11:24:00.000-08:00

Happy New Year! Whew, what a busy holiday season! I hope you all had a wonderful holiday and are back in the swing of the new year! We sure are here. Our business is still very busy, we've actually added a few new people to our team to give Tom and I a little break from the 24/7 schedules we feel like we've been keeping. That has given us some breathing room, more time to enjoy the girls as they grow and yes, more time to blog!! Look for more updated blogs as we continue to keep you informed of the market and our surrounding areas.

Along those lines, if you have children in the Gilbert Public School District, this may be an issue for you to look at. I received this email and wanted to pass it on so you can decide for yourself if this is an issue you need to get more involved in.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Friends and Neighbors (in interest of your privacy, I have blind carbon copied you):

Last week I sent you a letter asking you to examine the issues surrounding GPS’ graduation requirements for the class of 2013 (freshman class for the upcoming school year). This issue will affect not only special education and struggling students, but also many students who wish to focus on music or arts; who choose to take courses that may not transfer from concurrent enrollment at the local community colleges; and those who focus on work, activities, or other classes that may not receive academic credit. In the end, this is a simple issue of allowing parents the maximum flexibility to guide their own child’s education.

As a follow up, the board meeting will be held one week from today. Details of the meeting are as follows:

What: School Board Meeting
When: Tuesday, January 27, 2008
Time: 7:00 pm
Location: Educational Complex Building
140 South Gilbert Road
Gilbert Rd, Gilbert, AZ

We need your support at this meeting so that the board is left with no doubt regarding how the community feels. May people are drawing different conclusions about the issues involved, as evidenced by the very different editorials opinions expressed in the Arizona Republic and the East Valley Tribune. As you can see, one newspaper understood the potential effects and the desire of parents to make choices for their own children, the other did not.

Last month the Arizona Republic’s editorial staff “got it:” http://www.azcentral.com/arizonarepublic/opinions/articles/2008/12/20/20081220sat2-20.html

Last week the EV Tribune’s did not: http://www.eastvalleytribune.com/story/134225

Please plan to attend the board meeting next week. If you cannot attend (and even if you can), please email the GPS school board (board@gilbert.k12.az.us).

Please forward this email others and invite them to attend next week’s meeting. I would rather have people hear about this multiple times than not hear at all.

Your neighbor,

Reed Carr
http://gpsgraduation.blogspot.com/
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
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!!

2008-12-15T19:21:00.000-08:00

Could this just be the beginning? A second wave of unexpected defaults could be coming. Here is an interesting video I wanted to share.

Watch CBS Videos Online

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!!

2008-11-20T06:58:00.000-08:00

When asked "Are we at the bottom of the market?" it is always impossible to tell until we are already there. But, here is a very interesting video about what one county is doing to try and move their foreclosure supply. We may still have a ways to go on this wild ride....

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!!

2008-11-12T19:24:00.001-08:00

Government Launches New Mortgage Aid Effort.
from the Fox 10 website.....

Once again, the government has offered another plan to help troubled homeowners. Once again, critics say it doesn't go far enough.

The plan announced Tuesday by federal officials and mortgage giants Fannie Mae and Freddie Mac sounds sweeping in its approach: Borrowers would get reduced interest rates or longer loan terms to make their payments more affordable.

But there's a catch. The plan focuses on loans Fannie and Freddie own or guarantee. They are the dominant players in the U.S. mortgage market but represent only 20 percent of delinquent loans.

Sheila Bair, chairman of the Federal Deposit Insurance Corp., said the plan "falls short of what is needed to achieve wide-scale modifications of distressed mortgages."

With the government spending billions to aid distressed banks, "we must also devote some of that money to fixing the front-end problem: too many unaffordable home loans," Bair said in a statement.

Democrats on Capitol Hill aren't satisfied, either. "When the loan is chopped up into a million pieces and any investor can block a modification from happening, a program like this will only scratch the surface of the mortgage crisis," said Sen. Charles Schumer, D-N.Y.

The economic crisis is still unnerving Wall Street. Stocks fell again as investors found few industries safe from the consumer spending slump. With Starbucks Corp. and luxury homebuilder Toll Brothers Inc. both posting disappointing quarterly results, the Dow Jones industrial average closed down nearly 180 points.

The financial crisis took on a new dimension on Capitol Hill. House Speaker Nancy Pelosi called for "emergency and limited financial assistance" for the battered auto industry and urged the outgoing Bush administration to join lawmakers in reaching a quick compromise during a postelection session of Congress.

The new mortgage assistance plan was announced by the Federal Housing Finance Agency, which seized control of Fannie and Freddie in September, and other government and industry officials.

Officials say they hope the new approach, which takes effect Dec. 15, will become a model for loan servicing companies that collect mortgage payments and distribute them to investors. These companies have been roundly criticized for being slow to respond to a surge in defaults.

James Lockhart, director of the housing finance agency, urged investors to "rapidly adopt this program as the industry standard."

Still, government officials had no estimate of how many homeowners would be able to qualify. Fannie and Freddie own or guarantee nearly 31 million U.S. mortgages, or nearly six of every 10 outstanding. But they have far lower overall delinquency rates -- under 2 percent.

To qualify, borrowers would have to be at least three months behind on their home loans and would have to owe 90 percent or more than the home is worth. Investors who do not occupy their homes would be excluded, as would borrowers who have filed for bankruptcy.

Qualified borrowers would get help in several ways: The interest rate would be reduced so that they would not pay more than 38 percent of their gross income on housing expenses. Another option is for loans to be extended to 40 years from 30, and for some of the principal to be deferred, interest-free.

Though lenders have beefed up their efforts to aid borrowers over the past year, their action hasn't kept up with the worst housing recession in decades.

More than 4 million American homeowners, or 9 percent of borrowers with a mortgage, were either behind on their payments or in foreclosure at the end of June, according to the most recent data from the Mortgage Bankers Association.

Indeed, Tuesday's announcement comes too late for Troy Courtney, a 44-year-old San Francisco police officer.

He moved out of his home in Mill Valley, Calif., earlier this month -- taking his children, three dogs and one cat with him -- after failing at several attempts to get a loan modification or a short sale. A short sale occurs when the lender agrees to receive less than the loan is worth.

Courtney worked overtime and tapped into his retirement account to try to catch up with two loans on his home. But in the end, he couldn't persuade Countrywide Financial, which managed the loan for Wells Fargo, to modify the loan.

"I feel like I missed the boat," he said of the new efforts to help more homeowners. "I'm just mad at the whole system."

One reason the problem has been so tough to solve for borrowers such as Courtney is that the vast majority of troubled loans were packaged into complex investments that have proved extremely hard to unwind.

Deutsche Bank estimates more than 80 percent of the $1.8 trillion in outstanding troubled loans have been packaged and sold in slices to investors worldwide. Most of those loans won't likely be helped by the new plan.

The rest are "whole loans," which are easier to modify because they have only one owner.

Still, after more than a year of slow and weak initiatives, there seems to be a serious effort among major retail banks to get at the heart of the credit crisis: falling U.S. home prices and record foreclosures.

Citigroup said Monday it is halting foreclosures for borrowers who live in their own homes, have decent incomes and stand a good chance of making lowered mortgage payments.

JPMorgan Chase & Co. last month expanded its mortgage modification program to an estimated $70 billion in loans, which could aid as many as 400,000 customers. The bank already has modified about $40 billion in mortgages, helping 250,000 customers since early 2007.

Starting Dec. 1, Bank of America Corp. plans to modify an estimated 400,000 loans held by newly acquired Countrywide Financial Corp. as part of an $8.4 billion legal settlement reached with 11 states in early October.

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!!

2008-11-07T19:08:00.000-08:00

These are interesting graphs, they show data about how many homes are selling. Just as they were 2 years ago, 10% of homes are selling monthly. So, things are moving out there.

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!!

2008-11-07T11:16:00.000-08:00

Here is a video of one of my preferred lenders, Brian Yampolsky, Co-Owner of Orion Mortgage. He talks about the 1st time home buyer tax credit in this video and I wanted to share this with you.

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

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

2008-11-03T13:56:00.000-08:00

This is a great chart that I got from the Talon Group. It shows you home sales for the month of October and how many were bank owned properties.

This table shows you details about home sales, REO sales and their median prices.
10/1/2008-10/31-2008
City Total Sales REO Sales* % REO Sales* Median Price REO Price*
Phoenix 1274 624 49% $128,500 $99,700
Mesa 424 163 38% $157,000 $128,000
Scottsdale 319 67 21% $388,250 $270,000
Queen Creek 316 144 46% $126,000 $119,950
Glendale 294 146 50% $149,000 $120,500
Gilbert 289 98 34% $231,000 $191,000
Surprise 277 126 45% $162,500 $153,250
Chandler 240 68 28% $229,250 $179,750
Peoria 186 67 36% $217,000 $180,000
Avondale 156 90 58% $145,450 $135,900
Buckeye 137 88 64% $120,000 $114,500
Goodyear 126 54 43% $165,000 $147,500
Tempe 82 13 16% $223,000 $138,000
Tolleson 73 45 62% $139,900 $130,900

*REO = Bank owned homes

Homes are selling. And if you are in a position to buy an investment property, now is the time. Call me about what is available today!

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!!

2008-11-01T13:49:00.000-07:00

Here is an article from Friday's paper. I thought this was interesting data and wanted to pass it on:

Here's a shocker: Almost half of Nevada homeowners with a mortgage owe more to the bank than their homes are worth. Here's another: If you add in the homeowners like them in California, Arizona, Florida, Georgia and Michigan, together they account for nearly 60 percent of all homeowners who are 'underwater' on their mortgages. Nationwide, almost one out of every five homeowners with a mortgage owes more to their lender than their properties are worth. But if you subtract those states, the rate drops to about one in 10, according to a report released Friday by First American CoreLogic. The new data underscore the staggering scope of the U.S. housing recession, but also the challenges that government officials face in designing a massive new program to help homeowners avoid foreclosure, with layoffs soaring and the economy sinking. Some experts predict the problem will get much worse.

Nationally, home prices are already down about 20 percent from their peak in mid-2006. By the time the housing market hits bottom, prices may be down 40 percent from the top, leaving 40 percent of homeowners underwater, according to Nouriel Roubini, economics professor at New York University. 'There is a huge incentive to walk away from your mortgage,' said Roubini, who has attracted attention for his gloomy — and accurate — predictions of the U.S. financial market meltdown. He gave no forecast for when the real estate market would bottom out. Another pessimistic analyst, Desmond Lachman of the American Enterprise Institute, said that 'unless there's government intervention on a big scale … we're really not going to bottom.'

The problem is much worse in far-flung suburban neighborhoods where builders flooded the market with new homes and buyers put down small, or no, down payments, said Mark Fleming, First American CoreLogic's chief economist. In desirable urban neighborhoods and close-in suburbs, 'a lot of people bought their homes years ago. It's much more difficult for them to be in a negative equity situation.' Fleming said. Rising mortgage rates are also making matters worse for prospective borrowers. The rate on a 30-year, fixed-rate mortgage averaged 6.46 percent this week, up sharply from 6.04 percent last week, Freddie Mac reported Thursday. Higher rates coupled with lower home values mean fewer people can tap their home equity. The percentage of U.S. homeowners who pulled cash out of their homes remained at a four-year low in the third quarter, Freddie Mac said. While some underwater borrowers certainly will lose their homes to foreclosure absent a massive — and successful — government refinancing plan, many will continue to make their payments and wait for values to recover. And of course roughly 30 percent of Americans own their homes outright.

Still, it remained unclear whether the government would be able to do much for many borrowers in trouble, especially given the amount of time to start up a new program. 'Certainly it can't hurt,' Bernard Baumohl, chief economist at the Economic Outlook Group in New Jersey. 'How much it's going to help is an open question.' On Thursday, White House press secretary Dana Perino tried to dispel reports that the Bush administration is near agreement on a plan to help about 3 million homeowners avoid foreclosure. Perino said several different ideas are on the table, and that no announcement is imminent. The plan, widely expected to be run by the Federal Deposit Insurance Corp., would be the most aggressive effort yet to limit damage from the U.S. housing recession.

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!!

2008-10-09T08:20:00.000-07:00

Here is another take on how the bailout will affect the overall housing market. The bailout does not necessarily allow for the reduction in mortgage amount or interest rate. See my previous blog for BofA's answer to that. Here's the full story:

http://rismedia.com/wp/2008-10-07/bailout-no-quick-fix-skips-strapped-homeowners-advocates-say/

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!!

2008-10-08T08:16:00.000-07:00

Bank of America announced this week that it will begin helping people stay in their homes by adjusting their mortgages to no more than 34% of gross income. This is expected to help 400,000 people. What a novel concept, helping people STAY in their homes and keep paying rather than take over huge debts that then must be sold. Hopefully this will be a step in the right direction of helping people to continue to pay on their mortgages rather than helping them walk away from them. Read the full story here:

http://money.cnn.com/2008/10/06/real_estate/Drastic_plan_slashes_mortgage_costs/index.htm?postversion=2008100616

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!!

2008-09-26T14:33:00.000-07:00

Here is another great email from Mary Ellen Kohut of The Mortgage Advantage, Inc:
~~~~~~~~~~~~~~~~~~~~~~~~~~~
Good morning comrades. "Practices of the unscrupulous money changers stand indicted in the court of public opinion, rejected by the heart and minds of men there must be strict supervision of all banking and credits: and investments, so that there will be an end to speculation with other people's money." President Bush? John McCain? Barack Obama? Jon Stewart? Nope. Franklin Delano Roosevelt, President from 1933 to 1945. By 1933 depositors had lost over 140 billion dollars due to the frolics of Wall Street. Along with the stock market crash of 1929 it began a downward spiral into what is known as the "Great Depression".

The U. S population then was a mere 123 million souls compared to over 305 million today. Through the years we have allowed Wall Street to ease back in to take control of our money and our country. As a result the 700 billion dollar proposed bail out plan may be the socialist answer to save our economy, but it may be the only answer. While our leaders on Capitol Hill are posturing for a plan to carve their initials, Washington Mutual was taken over last night by the Fed and will be chopped up with a big slice being given to Chase. This is by far the largest bank failure in U. S. history. Why is the government stepping in when our capitalist motto is for the government to stay out of our companies? The sins of Wall Street have seeped into virtually every business (think 401k's) in the U. S. and the world. We all should be mad as heck, but if we do not have banks or have lending - we do not have an economy. This time around it is not just about us. Banks, investments, all ethnic groups, cultures, careers and savings are intertwined throughout our globe.

FYI: Get Out!!! We, as a country will get through this. Houses are selling. Fannie, Freddie, FHA and VA are all controlled by the government, so there are loans for home buyers. Step away from the T. V. , your P.D.A, and talk radio and take yourself and family on a drive to Sedona to the State of the Art Festival, or to the high country and go hiking, or visit a museum for free, compliments of the Smithsonian on Saturday. Take in a happy movie. Eat at your favorite restaurant. Get out and enjoy the life we have!

Mary Ellen

Truth In Lending Promotes Trust In Lending

Mary Ellen Kohut, Mortgage Specialist
The Mortgage Advantage, Inc.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Wise words. Especially about getting out and enjoying our families at a time when the economic structure seems so shaky. There is no better time to get back to basics and remember what is TRULY important, the health and happiness of our families.

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!!

2008-09-23T14:27:00.000-07:00

This is something that came across my desk from Mark Sheck, Senior Loan Officer of Cherry Creek Mortgage. Changes in lending are being made for people trying to rent their existing home to purchase a new primary residence. With all the shake up in the market and mortgage industry, it is no wonder they are trying to regulate this new tactic as people want to take advantage of the lower prices and get more house for less money. Here are key points to the new Federal Housing Administration (FHA) guidelines:
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Here are the 7 things you need to know about these changes:

1. This is a temporary change, and effective as of September 19th, 2008.
2. The borrower must be relocating to a new job location.
3. The new home must be outside reasonable commuting distance from the current residence (UW's discretion).
4. The borrower must have a fully executed lease with at least a 1-year term from the closing date of their new mortgage.
5. The borrower must document receipt of the security deposit and/or first month's rent.
6. Current residence must have an LTV of 75% or less.
7. The value of current residence can be proved with the following:. * Appraisal no more than 6 months old, or * Original HUD-1 and current bank statement.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Thanks to Mark Sheck from Cherry Creek Mortgage for keeping us up to date on these changes!!

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!!

2008-09-19T19:33:00.000-07:00

This was sent to me by another agent in our office. I thought it was worth passing on. This could mean good things for home buyers, in addition to the great low mortgage rates AND super deals on foreclosed properties!!

***************************************
Washington, DC - September 16, 2008
By: Nehemiah Corporation of America

A Bill that would save seller-funded downpayment assistance from being eliminated on October 1 passed the House Financial Services Committee today on a voice vote amidst strong bipartisan support. The Bill, The FHA Seller-Financed Downpayment Reform and Risk-Based Pricing Authorization Act of 2008, or H.R. 6694, is expected to move to the floor for a full vote in the coming days.

"We continue to believe that reinstating downpayment assistance (DPA) will ensure that working-class families that have nowhere else to turn for help will still be able to own a home," said Scott Syphax, president and CEO of the Nehemiah Corporation of America, the largest and oldest provider of downpayment assistance. "The strong bipartisan support demonstrated during today's hearing speaks to the growing sentiment that the original Housing Bill was wrong to ban DPA. As H.R. 6694 continues to move through the House and onto the Senate, we urge members of Congress, like so many others, to vote to 'amend - not end' these important programs and correct the mistake made through the initial ban."

The October 1 ban was written into law by President Bush when he signed H.R. 3221 Housing and Economic Recovery Act of 2008 on July 30, 2008. H.R. 6694 was introduced in the House of Representatives by Congressmen Green, Miller and Shays and Congresswoman Waters on July 31, 2008. If enacted into law, it will allow downpayment assistance to continue indefinitely.

Ben Allred

~~~~~~~~~~~~~~
Mike Billingsley
Remax Power Realty

**************************************
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!!

2008-09-10T14:41:00.000-07:00

Here is a video that explains the take over of Freddie Mac and Fannie Mae and what that may mean for you. I know many may be interested in this latest news and what this means for the economy and real estate market.

http://www.myfoxphoenix.com/myfox/pages/Home/Detail;jsessionid=0D2A6FE1DD0BCA86E9D6CBCD21DFFE8B?contentId=7379081&version=2&locale=EN-US&layoutCode=VSTY&pageId=1.1.1&sflg=1

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

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

2008-09-07T14:32:00.000-07:00

Wow, things just keep getting more "interesting" in the mortgage industry. If you've been wondering about this take over and how it may impact you, here are a couple of links worth looking at. Rates will likely get lower before they go higher, that plus the screaming deals make it a great time to pick up an investment property if you are so inclined.

http://webmail.west.cox.net/do/redirect?url=http%253A%252F%252Fwww.remax.net%252Fstories%252Fmainst%252F20080910%252F8683.htm

http://webmail.west.cox.net/do/redirect?url=http%253A%252F%252Fwww.marketwatch.com%252Fnews%252Fstory%252Ftreasury-set-bail-out-fannie%252Fstory.aspx%253Fguid%253D46d1439e-a2c4-418c-9be0-09be0b9ee60d

http://webmail.west.cox.net/do/redirect?url=http%253A%252F%252Fwww.sfgate.com%252Fcgi-bin%252Farticle.cgi%253Ff%253D%252Fc%252Fa%252F2008%252F09%252F09%252FED7R12R6CA.DTL

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!!

2008-09-05T13:58:00.000-07:00

Here are a couple of graphs to give you a visual representation of the market levels these days. The top one covers all areas of the Valley and the bottom one just focuses on Maricopa and Queen Creek.

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!!

2008-09-03T19:48:00.000-07:00

As property values drop, you may be wondering just how you can build equity in your home. Paying extra per month, even small amounts, can really add up in terms of paying off your loan sooner and building more equity. Simple things like 1 extra payment per year can save you thousands in interest. Even something as little as $20 extra per month can really make a difference. Here is a flyer I scanned which has some other great ways to save you money and help pay off your mortgage faster! Click for full size image.

2008-09-01T08:49:00.000-07:00

Woodside Homes is the latest to go into bankruptcy. They were ranked the 26th on Builder Magazines list of 100 largest homebuilders in 2007. They have 9 communities in the valley. Read more about it here:

http://www.azcentral.com/realestate/articles/2008/08/28/20080828biz-woodside0829-ON.html

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

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

2008-08-27T13:25:00.000-07:00

Selling your house in today's market can be challenging but certainly is not impossible!! Listen to Margaret Kelly, President of Re/Max on the Today Show and her thoughts on the market and selling your home.

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!!

2008-08-24T09:07:00.000-07:00

Here is another article from Mary Ellen Kohut from The Mortgage Advantage, Inc. that I thought I would share with you:
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A piece of the American pie is fading fast with one of the last of the zero down programs, eliminated by HR3221, Housing and Economic Recovery Act of 2008 , kicking Down Payment Assistance programs Ameridream and Nehemiah to the curb October 1st. Banks are requiring close of escrow before the October 1st deadline. Will the DPAs bounce back? Maybe. There are court appeals, new legislation introduced, grass roots movements; but the reality is that a new law would have to be signed off by the House of Representatives, the Senate and the President. It will be months, if indeed any legislation is passed, and it will be highly regulated with many stipulations. The original Down Payment Assistance Programs, ie: Mom and Dad, are still in effect.

The Down Payment Assistance Programs are going away, but how about that new tax credit? Pretty darn cool! Buyers who have not owned homes in the past three years are eligible and it applies to homes closed after April 9, 2008 and before July 1, 2009. The tax credit is a straight dollar-for-dollar deduction of your tax bill. So a married couple who would ordinarily pay $8,000 in taxes would pay just $500. But no, your buyer is not going to get a check in the mail from the government for $7500 after closing on their home. They will have to fill out a to-be-determined form with their tax return in January or February, and the tax credit will be calculated from the taxes paid in. As always, with anything regarding the IRS; check with an accounting professional to get exact information.

FYI: Boys and Girls, read the contracts that you receive from the banks, asset managers and trustees! Escrow was opened yesterday with a contract from a bank trustee, signed by the borrowers, stating that the trustee had up to 60 days to get bank approval for deed re-conveyance. The borrowers are utilizing Ameridream, so you do the math. On Tuesday, we were waiting to close on another bank owned property, when the bank refused to give our borrower back his earnest money. He had signed a bank addendum that he would not receive ANY funds at closing. ~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!!

2008-08-22T09:19:00.000-07:00

Whew, it has been a crazy few months for us!! We have been BUSY helping people buy houses for incredible prices and values! We've been so busy in fact that we've added Terri Hirning to Your Advisory Team in the form of Client Care Manager. She handles a lot of the behind the scenes things so we can focus on the many details of completing a real estate transaction. So evem with the upheaval in the market, we continue to help people realize their real estate dreams. And the numbers are moving up, per the Arizona Republic's figures. Here is some data about the last few months home sales in the Valley.

Last month, 4,695 existing homes changed hands, according to Arizona State University's Morrison School. That compares with 4,565 resales in June. Valley foreclosures, or trustee sales, climbed to 3,470 in July, up from 3,275 in June. In July 2007, there were 4,080 resales and 660 foreclosures.

Analysts say foreclosures must slow before the Valley's housing market begins to come back. A good sign is that pre-foreclosures, or notice of trustee sales, dipped slightly in July. That means foreclosures could begin to fall in the next few months.

Despite the uptick in home sales, prices continue to fall. The median price of a Valley resale in July was $200,750, down from $218,000 in June.
(From Arizona Republic)

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!!

2008-08-13T19:40:00.000-07:00

The information listed below came from an appraiser who spoke with an FHA HUD appraisal processor working with the Department of HUD directly regarding HUD Guidelines. I thought this might help explain how an FHA appraiser will be looking at properties with "liveability issues". "Subject To" means that the repairs or missing appliances/ fixtures will have to be completed and the property re-inspected (at an additional fee) before loan documents can be drawn.

Listed below are just a few (not all) of the major questions asked relating to FHA appraisal reports.

Regarding carpet. If the carpet is removed it must be replaced and the report made “subject to” due to it is a health and safety issue. The same goes for soiled, stained and cat urine carpets. This according to him is a health and safety issue and the carpets must be replaced and the report made “subject to”.. If concrete flooring is exposed where prior carpet has been removed then the report must be made “subject to” due to health and safety issue.

Also I clarified. Per HUD guidelines a stove that is a pullout-slideout is not considered a built-in stove and is not required. A dishwasher with counter above is considered built-in and is required if missing. The same goes for a microwave that is built-in. If it is missing and has the holes showing as to where it was, then it is required if missing and the report is to be made subject to.

All utilities must be on and tested at the time of the inspection. Toilets flushed, faucets tested, outlets tested, light switches tested, air conditioner and furnace tested, water heater tested for hot water and water pressure tested.

All outlets and light switches must have plate covers or the report must be made “subject to”. Exposed wires are a health and safety concern.

Homes built prior to 1978 will be made “subject to” if chipped and peeling paint is found present. (lead based paint concerns).

Pools are required to be in operating condition with functioning pumps and filters. Reports must be made “subject to” if pool is empty, green and stagnant, low water level or pumps are not functioning properly.

Broken windows will require replacement and the report must be made “subject to”.

Info courtesy of Mary Ellen Kohut, The Mortgage Advantage, Inc.1720 E. Warner Rd. Suite 1Tempe, AZ 85284

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!!

2008-07-31T19:40:00.001-07:00

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

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

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

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

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

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

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

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

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

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

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

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

2008-07-27T16:46:00.000-07:00

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

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

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

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

2008-07-22T15:14:00.000-07:00

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

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

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

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

2008-07-20T15:24:00.000-07:00

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

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

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

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

2008-07-17T13:35:00.000-07:00

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

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

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

2008-07-16T13:40:00.000-07:00

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

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

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

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

2008-07-14T13:46:00.000-07:00

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

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

Check our website here for our bank owned listings.

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

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

2008-07-10T14:34:00.000-07:00

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

Short Sale Transactions
By K. Michelle Lind

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

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

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

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

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

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

2008-07-07T16:11:00.000-07:00

2008-07-02T14:03:00.000-07:00

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

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

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

2008-07-01T06:17:00.001-07:00

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

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

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

********************************************

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!!

2008-06-25T15:53:00.000-07:00

I love, love, love when I can help families achieve their home ownership dreams! To see their smiles and know they are going to be thrilled living in their new home is what motivates me! And I love it even more when my clients are equally thrilled with the home buying/selling process. It can be the most exciting time of your lives but it can also be stressful. So, when I hear from clients who are not only happy with the outcome but also the process, I really appreciate that. Here's feedback from one family who recently sold one house and bought another:

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We would recommend Erika to anyone seeking real estate counsel and/or services in today's crazy market. Erika is intimately familiar with the east valley real estate scene. She relentlessly marketed our home, and was in touch almost daily. We always knew where she was focused as well as the temperature of our surrounding community real estate waters. We are moving to our new home on 5/10 and you will have new neighbors on 5/13! If you need to move, call Erika -
she has our highest personal endorsement!

Chris & Lori Bisgrove

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Here's a great picture of their kids in front of the sold sign:

2008-06-20T15:46:00.000-07:00

Do you own a business? Whether it’s small or BIG you need to take note. This fall once school starts I will be building a business network of homeowner’s in our area… the purpose will be to bond business owners together with ideas for growth, opportunity sharing & support of Highland Park Elementary events & programs, etc. (You do NOT need to have a student in the school). If you are interested in participating, call me 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!!

2008-06-15T06:14:00.000-07:00

It seemed like we had such a mild summer (so far) but things are eventually going to really heat up. Did you know that is a great time to golf for less? That's right, the summer heat means less money out of pocket for time on the course. Here is an article on where to go and what the costs are.

2008-06-12T06:01:00.000-07:00

Here's a fun article on the Mayor of Gilbert and it gives some interesting information about our city that I thought you may enjoy reading.

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!!

2008-06-11T08:41:00.000-07:00

Remember my post on June 1st about auctions where I highlighted our listing on Capri about to go to auction? Just as I guessed, it is still available! If you are looking for a low price investment, here it is again. It is still available and listed at $109,500. It has 3 bedrooms, 1 bath, 1282 square feet and was built in 1973.

2008-06-10T05:56:00.000-07:00

Are you beginning to think about July 4th already and wondering what you'll be doing to help celebrate our independence day? Here's some great information on cool things to do in the east valley for the 4th.

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!!

2008-06-09T16:26:00.000-07:00

10 fastest growing Real estate markets

Read article here

I had to post this because since we have stepped into the foreclosure side of the business, I must tell you I agree with this article, I dont believe our local markets will see a swing in the pendulum till 2010, 2009 will most likely stay like it is... slow in the normal resale market, HOT in the bank owned market.

The last week of May the county recorder's office (I believe it was Maricopa County only I was
looking at) had almost 1200 homeowner's notified of foreclosure's pending! Even a typical week has 400-500 homes, that's typical?? We are going to be in this mess for quite awhile, so buckle up and hold on, it looks like it might be a bumpy ride!!

When you read this article you will also see that the supposed 10 fastest growing are not posting double digit equity jumps- so minimal they are hardly worth mentioning; other than they aren't negative.

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!!

2008-06-01T10:09:00.000-07:00

As auctions become a familiar part of our Real Estate Landscape, I still never thought I'd see this here in the East Valley... Here's AZRepublic article about 450 homes going to auction.

A listing of mine and Tom's is on the auction block for $1000 opening bid; AND it's in town, Sossaman & Broadway to be more specific; here's the home...

The home is located at 7464 E Capri Ave., it's a 3 bedroom around 1200 sqft, there is some peeling paint & dry rot areas of wood, so a conventional or cash buyer is needed to complete the transaction. Feel free to contact us with additional questions, this house is set for auction on June 7th or 8th.

Be aware these autions have minimum reserves set (just like EBay) meaning the sales price the bank is willing to sell the house at has been set- and it will not be disclosed. The sad thing is this home will most likely still be available after the auction ends having not sold.

You can see a list of all the auction dates nationally, as well as search locally, here.

2008-05-29T10:34:00.000-07:00

Well this info comes late for a few people I have talked to over the last few months, but I am not sure how much help they can provide, if any of you from cyberspace use this please email or call me so I can post your outcome.

Forclosure HELP Hotline

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!!

2008-05-22T10:45:00.000-07:00

Our family will be away from computers and phones for several days over the holiday weekend! Should be an experience, we'll have to report back once the weekend is over, provided we aren't buried in paperwork awaiting us on our return!

I'll be back in the office on Tues, don't hesitate to call!

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!!

2008-05-22T10:38:00.000-07:00

Phoenix Resale Prices could fall to 2002 Values, see article here

well here's a NEWSFLASH, in alot of areas they already have! I have been showing homes to clients where a listing price today was considerably under what they were originally sold for 6-8 years ago, I can't believe as I walk thru these houses that after 10 years in real estate I would see home values this LOW ever again.

Here's comments from another reader of Catherine Reagor's BLOG regarding the above article (I full heartedly AGREE);

posted by Darrell2230 on May 23, 2008 at 12:00 PM
MIGHT fall to 2002 levels? Ya think????
Come on people. Affordability. Price/rent. Supply/demand.
This is basic econ 101 stuff.
OF COURSE we're going back to pre-bubble prices. And the sooner we get there, the better, because that is when builders will FINALLY stop adding more inventory to our already HORRIDLY oversupplied market.

A recent article I read explained how Realtor incomes have been affected, after being a 10 year veteran in the Phoenix market, I can tell you from the experiences I have and continue to have that we have all been thrown a HUGE curveball! Those of us who LOVE and live for change, who learn from it, master it and grow from it ~ will stay in this fantastic business. I have no plans to go anywhere, just business plans being re-worked.

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!!

2008-05-19T19:00:00.000-07:00

While an article I posted days ago stated that we were at the bottom of the market, it's important to remember that was a national glimpse of the market. Real estate is local, and I believe this article is much more close to home.. view here

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

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

2008-05-15T11:30:00.000-07:00

For a weekly updated list of all homes with foreclosure dates set just revisit us weekly. Then simply click the link provided in previous sentence.

Also see the weekly sales update to keep fresh on the current market and pace of home sales.

We currently have almost 65,000 active listings on the market, this translates into a 10-12 month market with only 4% selling monthly, homes which are aggressivley priced will sell, others will remain on the market until sellers reduce prices to entice buyers to look & ultimately make a decision. (this graph will be updated within a week or so, pending sales are up a bit but 90% of the activity is within the foreclosure market where there are no sellers living in the home to make a move up purchase within our market)

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!!

2008-05-14T10:58:00.000-07:00

INVESTORS - URGENT COMMUNICATION
(this was sent to me by a loan officer I know, Barbara Heiser of Amerifirst Mortgage; her contact info is below)

Attached is a recent communication from Freddie Mac. Effective August 1, 2008 both Freddie Mac and Fannie Mae will NO longer allow financing where a borrower owns more than 4 financed properties, the previous number of properties allowed by Freddie/Fannie was 10. This is a significant change and will impact anyone who has 4 or more financed properties.

If you are an investor or if you or someone you know owns more than 4 properties it is critical to immediately consider the following:

1. If you own more than 4 financed properties and any of your loans are on an adjustable rate you have a 45 day window to get those loans refinanced to a 30 or 15 year product. If you do not do this now you could be stuck with an adjustable rate loan indefinitely. If the terms on your adjustable rate are not good then the impact could be disastrous long term

2. If you are looking to purchase a property you need to do it now! If you already own 4 or more properties and are looking to purchase a new one and wait you will find it much more difficult to obtain financing and will most likely encounter higher rates and greater down payment requirements for using a bank that does not follow Freddie Mac and Fannie Mae’s guidelines.

I am here as your resource and will be happy to provide assistance with refinancing or qualifying to purchase today. Please forward this communication to everyone you know. Most lenders are not even aware of these changes and I want everyone to have a fair chance to get their financial house in order before it is too late.

Please call Barb Heiser with any questions, Amerifirst Financial, 1910 S. Stapley Dr. #209
Mesa, AZ 85204
Business: 480-682-6605
Cell: 480-993-6717
Fax: 480-304-9118
E-Mail: bheiser@amerifirstloan.com
Web: www.TheHeiserTeam.com

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!!

2008-05-07T23:04:00.000-07:00

Read what will be a well traveled article, The Housing Crisis is Over? then see the comments here... page 1 & page 2

I can tell you from current activity within my business that I dont believe this summer the market will move enough to begin correction. There are more homes selling but it's mainly foreclosed homes at sales prices that make the market move.

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!!

2008-05-01T15:48:00.000-07:00

Here's some great values we've been seeing...

2337 sqft for $214,900 almost brand new home in Highland Groves
2112 sqft for $154,000 with granite and great upgrades in Queen Creek
2898 sqft for $430's Higley Groves West
2400 sqft in Copper Basin for $144,900, I'd live in this one
3871 sqft in Cortina for only $264,900, nice home needed some paint

there's many more out there- call us so we can help you find your next home!

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!!

2008-05-01T15:39:00.000-07:00

Foreclosure or Short Sale, which is best to buy?

Foreclosures

vs.

Short Sales

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!!

2008-04-27T15:11:00.000-07:00

Why is it that hair dressers, nail technicians, massage therapists... all who deal directly with the public, are licensed and regulated... yet loan officers who have the ability to help or hurt people when it comes to their largest investments dont have to be...

Read the link above to find out how a Bill trying to pass legislation is stalling out, again... when we need it most of all...

Be sure if you plan to refinance, or purchase a home that you are either using a lender you trust, or ask someone to refer you to someone they have previously used... I have several trustworthy loan officers I'd be happy to refer you to, just give a call!

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!!