Are you facing foreclosure, and considering a short sale?

 

 

Many homeowners here in Phoenix, and the surrounding Maricopa and Pinal county areas, are still in danger of foreclosing.

 

This is a tough question to ask (and to be asked, for sure), but it is a question I ask these days of homeowners when they contact me inquiring about selling their home.  There are many people here in the Valley that are facing ARMs that are ready to adjust, or have already adjusted, or have had any other life happenings that would bring them to the need (not necessarily the want) to sell their homes…quickly…

 

As the real estate market has changed here in the Chandler, Gilbert, Mesa, Queen Creek, and other Phoenix areas (and across the U.S.), home prices have tumbled (to put it lightly), and many homeowners have found themselves upside down in their homes, otherwise known as owing more than the home is worth.

 

Homeowners who need to sell, and owe more than the home is worth, need to sell their home short of what is owed, also referred to as a short sale.

 

Click here for a basic overview of a short sale.

 

 

If you have come to the decision that a short sale is your only course of action, one of the first questions that may come to your mind is this: “How do I go about selling my home short, and what can I expect over the next several months?”

 

The first thing you should do:

 

Call 888-995-HOPE (the Homeownership Preservation Foundation), schedule a counseling appointment and GO SEE THEM!  The Homeownership Preservation Foundation was founded to help you keep your home by working out an arrangement with your lender(s). Visit them online: http://www.995hope.org/   If you really want to stay in your home, this should be your first step.

 

***Click here for an overview of new housing legislation, enacted to help you stay in your home***

 

 

If there just isn’t any possible way to keep your home, then you may want to proceed to the next steps:

 

***Remember each individual’s situation is different. There are many different circumstances, from who one’s lender is, to one’s annual income and other life matters.  Please use the following only as an informational piece.  Consult your Realtor, accountant, and/or lawyer for specific information for your specific needs!***

 

Get a copy of your credit report at www.annualcreditreport.com.  This is a free service (from a government mandated site) and will not only let you know where you stand financially, but could also be a piece of the short sale “package” that your Realtor may send to your lender.

 

Get your records ready and make copies of all of your financial statements. This will also be a part of your short sale “package”.

 

Next, contact a Realtor in your area and schedule an appointment to talk about putting your home on the market.  Once you have decided on a Realtor, and decided on an initial list price, it will be time to put your home on the market.

 

Here in Phoenix it’s extremely difficult (impossible, really) to predict when and at what price a home will ultimately sell.  Each market (the East Valley, for example) is different, and there are many smaller markets (Chandler, Gilbert, Mesa, Queen Creek, and the subdivisions within those cities) within those markets.  You will need to have patience and need to keep up with the current market in your area to be sure you are in the correct pricing “ballpark”. This will allow you to get the most showings possible, with the end result being an offer presented.  When offers finally come in, be prepared for some offers to be quite a bit lower than your asking price.  This doesn’t always happen, but it is very possible.  These “lowball” offers are typically fishing expeditions (someone looking for a great deal).  Consult with your Realtor on how to proceed, just keep in mind that if you’re receiving offers, you’re most likely in the correct pricing area.

 

As soon as you’ve decided on an offer, your agent will send in the short sale package to your lender(s).  At that point you will play the waiting game.  Remember, your lender, and the associate assigned to your file (in the department sometimes referred to as loss mitigation), are also working hundreds, if not thousands of files just like yours.  Patience is the key here! Keep in mind that your Realtor will continue to “work” the file and keep in contact with your lender as much as possible.  Be ready to wait up to two months or more to receive a response from your lender on the offer you’ve submitted to them.

 

Every lender is different, and there are a countless number of circumstances that may surround your particular situation.  Not every lender will agree to a short sale, and typically there is no way of finding out if they will or not until you get to this point.

 

If your lender has agreed to the terms of the offer you’ve presented to them, they will send you an agreement letter and you will then be able to proceed with the sale of home, assuming the buyer that has put in the offer is still waiting to buy the home.  In many short sale cases here in Maricopa and Pinal counties, the first potential buyers have moved on because they are just unwilling to wait so long for a response. Thankfully they DID put an offer in, and ultimately helped you to receive an agreement letter from your lender!  At that point, you’ll have to continue marketing the home until you find a buyer at the lender’s agreed upon price (or maybe you already have backup offers).  Then, if all goes well, within 30-45 days or so (after having a contract) you will have accomplished your goal, and sold your home, rather than letting it foreclose.  You can now get on with life.

 

**NOTE**  There may be tax and or legal ramifications in regards to selling your home short.  It is highly recommended that you consult an accountant and/or attorney before deciding on a course of action.

 

If you have more questions about short sales in Chandler, Gilbert, Mesa, Phoenix, Queen Creek  or the surrounding Maricopa or Pinal county areas, please feel free to contact me, my phone number is 480-529-6329.  My email address is Nathan@ezlistaz.com.

Arizona – East Valley Real Estate Update

Number of home sales in the East Valley - Phoenix

 

 

The number of East Valley (Chandler, Gilbert, Mesa, and Tempe) sales for the month of July came in at 1,284 units (the average sales price was $245,194 with an average days on market of 117). Up from 1,146 units sold for the month of June.  The number of monthly sales are still holding steady, well above 1,000 units.  The number of homes currently listed, as of August 3rd, is 9,555.  At the current pace of buying there is about 7.5  months of inventory on the market for the East Valley. 

 

Queen Creek Number of Sales for July

 

 

The number of single family homes sold in July was 372, up from last month’s total at 360 units. Homes are still affordable in Queen Creek, and buyer’s are still willing to purchase at these prices.  July’s average sales price was $169,068.  The average days on market for homes sold were 97, falling significantly from last month’s 123 average days on market.  At the current level of buying, there is approximately 4.5 months worth of inventory in Queen Creek.

 

If you’re considering selling, or currently looking for a real estate agent to sell your home, please email Nathan@ezlistaz.com, or phone 480-529-6329.

The Housing and Economic Recovery Act of 2008

 

 

 

… in a nutshell…

 

 

 

 

FHA Mortgage Refinance and Insurance Program

 

This would assist troubled homeowners by allowing them to refinance to a lower mortgage with an affordable rate.  It’s a voluntary program to both the borrower and the existing mortgage holder.  The existing mortgage holder would need to agree to release the lien at an amount less than owed.  There will eligibility requirements that both borrower and mortgage holder will have to meet.  In addition the new loan may not exceed 90% of the appraised value of the home.  No second liens will be allowed for at least 5 years.  HUD will be entitled to 50% of the appreciation in the appraised value of the property (HUD will be entitled to 100% of the first year’s appreciation).

 

Federal Housing Finance Agency to Oversee Fannie Mae and Freddie Mac

 

This will be a new independent agency to oversee, and regulate Fannie Mae and Freddie Mac.

 

The Treasury Department will also be granted emergency authority to purchase securities, including equity, and will also increase the existing credit lines of both Fannie Mae and Freddie Mac.

 

Mortgage Disclosures

 

The Truth in Lending Act requires delivery of certain disclosures 7 days prior to loan origination.  These disclosures must include examples of how payments would change with a rate adjustment.  The maximum possible payment must be disclosed.  The borrower must receive these disclosures before paying any significant loan fees.

 

Loan Originators Must Be Licensed

 

The licensing can be either State or federally regulated, as necessary.  All individuals involved in originating loans must be licensed and registered with the State or HUD.  Minimum standards must be met, including education (and continuing education), and testing. 

 

FHA to Raise Loan Limits

 

Limits will be raised to a minimum of $271,000, and the minimum down payment will increase to 3.5% of the purchase price.

 

Other Noteworthy Inclusions

 

$3.9 billion in community grants to purchase abandoned and foreclosed properties.

The extension of servicemembers foreclosure protections from 90 days to 9 months.

 

Creation of credit and housing counseling programs

 

A first time homebuyer tax credit and increase of the standard deduction for property taxes.

 

 

There are other provisions to this Act.  Please feel free to visit this website http://banking.senate.gov/public/_files/HousingandEconomicRecoveryActSummary.pdf

for more information.

Arizona Real Estate Market Update – ARMLS June Numbers

Arizona Regional Multiple Listing Service June Sales

Larger view: armls-chart

Single family home sales across the Phoenix Valley area continued its gradual climb for the month of June.  5,476 single family homes were closed this past month, up from 5,333 units for the month of May.  Total inventory (homes available for sale on the MLS) was 50,224, down 259 units from the previous month. At the current pace of buying in the Valley we have just over 9 months of inventory still available.  The average market time was just about 100 days.

 

Interesting notes:

 

The year over year difference in the number of home sales for the month of June looks positive.  Last year’s sales for June were 4,991, while this year was 5,476.  As June tends to mark the month we start to slow down for the year, I am eagerly awaiting July’s numbers to see if we can keep up the momentum!

 

Just about a fifth of last month’s home buyers paid in cash.  Are investors, along with Californian and Canadian buyers continuing to take advantage of lower home prices (while some local would be long term home buyers wait for the “bottom”)?

If you have any questions about the real estate market in the Phoenix metro area, or anywhere in Maricopa or Pinal counties, please contact me.  Nathan@ezlistaz.com, 480-529-6329.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Phoenix Real Estate Market Update July, 2008

East Valley Market Update

July - 2008

East Valley Sales Holding Above 1,000

 

Number of sales in the East Valley (Phoenix Metro) for June 2008

Click on chart to enlarge

 

The number of East Valley (Chandler, Gilbert, Mesa, and Tempe) sales for the month of June came in at 1,146 units (the average sales price was $272,620 with an average days on market of 124). This is down from 1,358 units sold for the month of May, but still up overall since our most recent low in January ’08 of 672 units sold.  Sales numbers appear to be holding somewhat steady over the past 4 months hovering just over the 1,000 units sold mark.  The number of homes currently listed, as of July 2, 2008, is 7,675.  At the current pace of buying there is about 6 ½ months of inventory still left on the market for the East Valley.  It’s probably still too early to tell if we’re seeing a flattening of our downward trend, but these past few months are most definitely a relief to some weary home sellers!

 

 

 

Queen Creek Still Putting Up Strong Numbers

 

Number of sales for Queen Creek, AZ - June 08

Click on chart to enlarge

 

Queen Creek is continuing to put out some impressive sales numbers.  The number of single family homes sold in June was 360.  This is slightly down from May’s numbers at 369 units sold.  With a large number of homes now in the area of affordability, thanks to the short sales and foreclosures that are available,  buyers are continuing to “get off of the fence” and purchase.  June’s average sales price in the Queen Creek real estate market was $175,784.  The average days on market for homes sold were 123.

Are you considering selling?  Want to learn more about your area?  Please feel free to contact me at 480-529-6329, or email me Nathan@ezlistaz.com.  Vist my website: www.ezlistaz.com.

May numbers for Phoenix Arizona Real Estate – better late than never!

 For a better view click:  armls-numbers-may-081

The number of monthly home sales continues to climb up as we head into the summer months.  The number of single family homes sold in the month of May was 5,333, which is close to even for last year’s May numbers at 5,337.  This is definitely a relief for some sellers as the market has been enduring some extremely low sales numbers over the past year. Total single family listings for the month of May are also slightly down from last years numbers.  Total listings for May are 50,483 which gives us about 9.5 months worth of inventory overall.  Average days on market have also dipped under 100.  Some outlying areas have seen a nice boost in sales over the past 3 to 4 months, due in large part to bank owned properties being priced to sell. 

 

Queen Creek has seen an increase in the number of monthly sales by about 100% over the past few months.  To put this into perspective, at the month of May’s pace of buying in Queen Creek there is about 4.5 months worth of inventory available.  If you average out the 3 month climb in sales, there is approximately 5.5 months of inventory on the market today.  What will this do for home values in the area?  At an average sale price in the area of roughly $165,000, this still remains to be seen. With the number of foreclosures still coming on the market we may need to stay close to this buyer activity to help keep the pressure off of current home values. Glancing at the above chart it appears home prices have reached an area (of affordability?) that more buyers are willing to pull the trigger, and purchase. 

 

 

Thinking about selling your home in the Phoenix area, including Gilbert, Chandler, Mesa, Tempe, Queen Creek and other surrounding areas?  Please feel free to contact me for more information on listing your home for sale. You can call at 480-529-6329, or email me at Nathan@ezlistaz.com.

 

 

 

 

 

 

 

 

 

 

 

 

Buy a home at auction in Arizona

 

This photo was taken outside of a home in Queen Creek, Arizona.  

Looking to buy your home at an auction?

 

The Phoenix Arizona real estate market has been hit hard by the downturn in home values, due largely in part to an almost uncountable number of bank owned properties and foreclosures.  If you’re in the market for a home, finding a foreclosure can be a way to pick up an even better deal.  There are several avenues to take when considering buying a foreclosed home.  One way is to buy at an auction.  Many times these auction homes are homes that haven’t been able to sell for many months, for one reason or another, and the owner (a bank or investor) is getting desperate to sell.  . 

 

Be sure to have REALTOR representation when you’re looking for foreclosed and auction homes.  An experienced REALTOR will be aware of the pitfalls and drawbacks of buying these types of properties, and will be able to protect you and negotiate for you throughout the process.  Using MLS and recorded sales data, your REALTOR will also be able to help you figure out whether or not the home is actually a good deal. 

 

Auction homes tend to be vacant for months, and possibly years, with no care, or maintenance for that entire time period.  Common problems with vacant homes these days are vandalism and theft.  From broken windows and holes in the drywall, to missing appliances and plumbing (copper re-sells for high $).  Because these homes are foreclosed, we assume that these homes have clear titles.  That’s not always the case.  Sometimes during the foreclosure process it takes a long time to figure out who really owns the home.  There have also been cases where the home hasn’t even been foreclosed on yet! – Check out this newsarticle  about an auction house that’s had a little trouble in that regard. 

 

So, with all of that said, a large part of buying an auction home or any foreclosed home will be your due diligence.  Be sure to view the property before bidding.  If you’re unable to view the property, make sure your contract is contingent on your final inspection and acceptance of the home.  Have a licensed home inspector go over the home when you’re under contract and in your inspection period.  A home inspector can find many things that are unseen to the untrained eye. Because many foreclosed homes in Arizona are sold as-is, you’ll need to know what your initial repair costs will be before the home is inhabitable.   

 

Consider a home warranty for at least the first year of ownership.  A home warranty will go a long way towards protecting you from unexpected failures such as you A/C going out in the middle of your first summer, ouch. 

 

Bank owned and foreclosure properties are an excellent way of picking up an excellent deal on a resale home.  Just be sure to protect yourself when buying, at a minimum have REALTOR representation, a contract contingent on final inspection, a home inspection, and a home warranty.  These things will keep you protected, and also ensure your great deal on that foreclosure home!

 

If you’re buying or selling a home in Maricopa or Pinal counties in Arziona, especially Queen Creek, Mesa, Gilbert, Chandler,Tempe, Phoenix, or Scottsdale, please feel free to contact me for more information.  Nathan@ezlistaz.com or visit my website www.ezlistaz.com get home selling information in Arizona, or search the Arizona MLS 24/7 for free!

Arizona Quarterly Real Estate Market Reports

Quarterly real estate market reports are available from the Arizona Regional Multiple Listing Service.  If you are considering selling or buying real estate in Arizona - Gilbert, Tempe, Chandler, Queen Creek, Mesa, or anywhere in the Phoenix metropolitan area in the near future these reports may be helpful for you to keep up to date on current real estate market trends.

2008

1st Quarter     2nd Quarter     3rd Quarter     4th Quarter

2007

1st Quarter     2nd Quarter     3rd Quarter     4th Quarter

2006

1st Quarter     2nd Quarter     3rd Quarter     4th Quarter

It’s critical to the success of selling your home to stay on top of real estate market trends.  If you’d like information specific to your area of town, please contact Nathan@ezlistaz.com.  If you have any questions, or would like more information about selling your home in the Phoenix metropolitan area, including Chandler, Gilbert, Mesa, Queen Creek, or Tempe please contact Nathan@ezlistaz.com, or visit www.ezlistaz.com.

An Octopus…In Your Stucco???

Buying a home that’s been vacant for a while?

 

 

 

 

 No, that’s not an octopus oozing out of your stucco…  That’s the spot where your exterior A/C units used to reside.  This photo was taken at a vacant bank owned property in Queen Creek, AZ. As you might guess it’s been a while since anyone has lived here.  As an active REALTOR in Arizona, I run into these situations when showing foreclosed and vacant properties.   A/C compressor theft and interior home appliance theft has become a more common occurrence with homes such as these.  It sure is easy for the taking with no one around to catch the thieves!  What’s the moral of this (picture) story?  Be aware of what you’re buying, make sure you’re getting the whole package, or at least know that you’re not.   And maybe even keep an eye out on that vacant home in the neighborhood… you know, the one with all the weeds?? 

Got Weeds…Got Mosquitoes???

 

 

Here in Arizona, I can safely say that we’ve all been touched by the current real estate housing market.  I’m sure we’ve all noticed that home that looks like it might be in trouble, weeds in the front yard that haven’t been tended to in a while… Haven’t seen the owners lately???  I think we’re aware that something is going on. 

 

A foreclosure in our area doesn’t help with property values, we can be certain of that, and it’s not too pretty to look at as time goes by.

 

One of the many reasons people buy real estate in Arizona is because of our great weather.  The sun is great, and we tend to lack all of those natural disasters we hear so much about.  But there’s one natural disaster you might not have thought about: mosquitoes.  Yes with all the sun and great weather we enjoy in this lovely state, we also enjoy our pools.  When a pool is lacking in maintenance it becomes a mosquito breeding ground.  I’ve personally looked into the green abyss and seen those squirmy little things swimming around just waiting for their opportunity to sprout wings and fly towards their nearest victim. 

 

So what happens to the pool when a home has been foreclosed on?  Who is taking care of it?  I’ve been through plenty of vacant and foreclosed homes, and my guess is no one has even thought about a pool needing maintenance, especially when there’s a $400,000+ home in the REO section of the balance sheet.

 

There was a recent article  that brought up the problem of abandoned homes and their pools, but what can we do about it?

 

Well, I’m glad you asked – here’s your answer:

 

For Queen Creek, Apache Junction, and other Pinal county areas you can call the mosquito hotline at 520-855-6200 or toll free at 866-287-0209 ext. 6200.  In Gilbert, Mesa, Chandler, Tempe, Phoenix and other Maricopa cities to report a green pool, or to get more information click here   and click on complaints in the paragraph.  You can fill out the green pool complaint report there.  You can of course remain completely anonymous and still do your part to keep your neighborhood clear of the West Nile Virus!