Archive for the 'Real Estate News' Category
Poetry and Selling your home in Phoenix
June 7th, 2008 categories: Real Estate News
Here are some poetic words, if you are trying to sell your home in the Phoenix Real Estate Market:
“Price them high, watch them die” “Price them low watch them go”
Here is the reality in selling your home in Phoenix: And the white out pen will not fix the market
An overpriced listing will not sell- you will most likely not even get a low ball offer, nor will you have any showings.
An under priced listing, will get lot’s of showings and most likely multiple offers.
If you want to “chase” the market- overprice your home and continue to drop the price, but most likley- you are behind the 8-ball, and the homes that are priced to sell are now under contract to sell- Sooooooooooo
“Price them high, watch them die” “Price them low watch them go”
Call me if you really want to sell your house.
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Tempe AZ Real Estate-Market Statistics May 2008
June 5th, 2008 categories: Market Statistics, Real Estate News
Tempe AZ Real Estate-Single Family Homes-Market Statistics May 2008
Current Listings: 520
New Listings: 145
Pending Sales: 110
Sold Homes: 117
The average sales price fell from $303,735 to $270,275 a decrease of 12%.
Tempe AZ Real Estate- Average Sales Price-May 2008
Here is the chart that demonstrates List Price vs Sales Price for Tempe Single Family Homes
This charts shows the number of new listings vs sold listings- a good indication of the transition, if any, from a buyer’s market to a stable “normal” market.
Tempe Real Estate- Listing Trends
When the Blue line meets the orange line- things are good in the Tempe Real Estate Market
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Phoenix Real Estate-What is the Lender’s Cost of Foreclosure and What is Going on in Congress?
May 31st, 2008 categories: Phoenix Foreclosures, Real Estate News
This article came to me via email, and with permission of the author, Amy Swaney, CMB
Vice President Artisan Mortgage, I am posting, as I thought there is some great information for Phoenix home buyers and home sellers and tips if you are interested in buying a Phoenix foreclosure.
“When speaking with prospective buyers and educating them on the current market conditions in regards to short sales, foreclosures and REO properties, many are not aware of the logistics and the costs involved in a foreclosure. Many buyers getting their feet wet in this contemporary real estate environment have unrealistic expectations of their negotiating position and are misinformed of the position that the banks, lender’s, investor’s or servicers’ are in after the foreclosure process. I thought this was some great information on understanding the realities of foreclosures.
Understanding the Lender’s Cost of Foreclosure (As taken from the current policy paper for Congressional briefing – Mortgage Bankers Association 2008)
The recent increase in mortgage delinquencies and foreclosures has brought significant attention to the costs of foreclosure to homeowners, communities, and mortgage industry participants. Although the impact of foreclosure on homeowners and communities is apparent, some confusion still exists about the impact on industry participants, particularly lenders, servicers, and investors.
Foreclosure is a lengthy and extremely costly process and, generally, a losing financial proposition for lenders and investors. A recent Congressional Research Service paper, which analyzes current foreclosure issues, highlights how substantial and far-reaching these losses can be.
While losses can vary widely, several independent studies find them to be generally quite significant…
* over $50,000 per foreclosed home or
* as much as 30 to 60 percent of the outstanding loan balanceBackground: A Who’s Who
When a lender holds a loan in portfolio, it retains the credit risk on the loan and typically takes a direct loss if the loan goes to foreclosure. When a loan has been securitized, the investors in the mortgage securities hold the credit risk and take the loss if the loan goes to foreclosure sale.
Mortgage securities generally are subdivided into groups known as tranches with distinct risk and return characteristics. As a result, losses usually are not borne evenly by all investors.The servicer (the one who receives the payments from the borrower on behalf of the lender) is contractually responsible for acting on behalf of the investor, for both portfolio owned and securitized loans. As the agent, the servicer collects payments from the borrower and passes payments of principal and interest on to the investor and, in most instances, makes tax and insurance payments to the appropriate entities as well.
Time Frame:
State law dictates the foreclosure process and timeline. As a result, foreclosure costs vary significantly from state to state. The national average time between the first missed payment and the foreclosure sale is approximately one year. After that, it may take additional time to gain possession of the property, clear title (if necessary), and prepare and sell the REO.Delinquency Period Costs
Lenders and servicers begin incurring costs as soon as a borrower stops making timely mortgage payments. Many of these are time-dependent costs that continue to grow as long as the loan is delinquent, in foreclosure, or in the REO sales process.These costs include:
• Lost principal and interest payments. In the case of a loan held in a lender’s portfolio, the lender incurs this loss directly. Where a loan has been securitized, the servicer incurs costs because transaction agreements usually require that they continue forwarding principal and interest payments to investors, using their own funds or borrowed funds, as long as the loan remains in the security.• Tax and insurance payments. The lender or servicer is responsible for making these payments, if the terms of the loan call for these items to be escrowed, whether or not the borrower is making monthly mortgage payments.
These obligations continue until the borrower resumes making payments or the property is sold.• Maintaining the property. If the borrower is not properly maintaining the home, the lender or servicer is responsible for the ongoing costs of maintaining the property. This can include paying for lawn maintenance, securing the property, complying with safety codes, winterizing the property (where necessary), and homeowners association or condo fees, if relevant.
These expenses continue until the property is sold.• Lost servicing fee income. A servicer loses its servicing fee when a loan is delinquent as this fee comes out of the monthly payment received from the borrower.
• Costs of collection efforts / servicing. Servicing delinquent loans requires additional servicer resources, which can be up to three times the cost of servicing a current loan.
• Legal costs for handling the foreclosure. The lender or servicer incurs legal expenses in all jurisdictions. Additionally, a personal bankruptcy proceeding often accompanies foreclosure. This further pushes up the legal costs the lender or servicer who must also be represented in that proceeding.
• Administrative fees. Court fees, fees to publicize foreclosure notices, auctioneer fees, and title fees must all be paid.
Once the lender has taken possession of and title to the property through a foreclosure auction or sale The lender has to prepare and market the home for sale. These expenses can be significant, accounting for over 40 percent of foreclosure-related gross losses.
The main expenses during this phase of the process are:
• Costs of restoring the property to saleable condition. Often homes of borrowers in financial distress fall into disrepair, requiring significant repairs and capital improvements (including painting, plumbing repairs, replacing appliances and carpeting, and repairing water damage).• Real estate commissions. Lenders typically use real estate agents to sell REO, which means commissions are paid upon sale.
The last step that creates a major expense for investors and servicers is the loss on the unpaid principal balance that occurs upon the sale of the REO.
The Role of Mortgage Insurance
Some loans carry mortgage insurance that can help servicers and lenders recover some of the costs of foreclosure. Low down payment loans sold to Freddie Mac or Fannie Mae requires mortgage insurance. Mortgage insurance can be in the form of FHA mortgage insurance, a Veterans Administration or other federal loan guaranty, or private mortgage insurance (PMI).Mortgage insurance claims are typically made once the lender or servicer has taken title to the property. Mortgage insurance can reimburse a servicer or lender for costs including unpaid interest payments, advances of taxes and interest, legal fees, and maintenance costs.
All mortgage insurance programs, however, have limits on reimbursements, whether based on the coverage level of insurance purchased (in the case of
PMI) or on a percentage of reimbursable costs (in the case of FHA).Mortgage insurance does not reimburse for some expenses such as capital improvements needed to bring a foreclosed property to salable condition, real estate agent commissions, tax and insurance payments made after the foreclosure sale and before the REO sale, and seller concessions that the lender or servicer may offer to effect an REO sale.
I’m Just a Bill, a Lonely ol’ Bill and I’m Sitting Here on Capital Hill How is it that we hear SO MUCH TALK about different solutions to the current real estate crisis, yet not much seems to actually HAPPEN? Ugh!
The Mortgage Bankers Association has compiled a side-by-side comparison of all the different proposals of these Mortgage Rescue Plans updated to include the current proposal approved by the Senate Banking Committee on May 20, as part of “The Federal Housing Finance Regulatory Reform Act of 2008.” The attached document compares and contrasts proposals introduced by Representative Frank, Senator Dodd, FDIC Chairwoman Sheila Blair, OTS Director John Reich, National Community Reinvestment Coalition and others. Updates to the Opposition of the OFHEO-NY Attorney General Appraisal Deal On May 27, John Dugan, from the OCC (Office of the Comptroller) sent a “strongly worded letter” addressed to OFHEO Director James Lockhart stating opposition to the Appraiser Code of Conduct (”Code”) agreement among OFHEO, the government-sponsored enterprises (GSEs), and New York State Attorney General Andrew Cuomo. The OCC noted the agreement would: 1) undermine rather than enhance the reliability of appraisals; 2) raise costs for lenders and consequently for consumers; and 3) disrupt appraisal processes, which are generally functioning well.Moreover, the OCC cited the agreement as fatally flawed because OFHEO failed to follow rulemaking protocol outlined in the Administrative Procedures Act. In addition, the agreement is inconsistent with well-established federal regulations and guidance
The current deal is set to be implemented in September of 2008 which would impose very restrictive valuation requirements upon lenders who sell their loans Fannie Mae and Freddie Mac.
If you would like a copy of the Mortgage Bankers Association’s side-by-side comparison just email me and I will be happy to send you the PDF file- When I figure out how to link to it in this post, it will be freely available.
Thank you Amy for allowing me to post this article. You can reach Amy via phone or email
Mobile: 480-529-3008
Direct: 602.714.9719
eFax: 623.889.2408
Email: amy@amyswaney.com
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Phoenix Real Estate-Short Sale and REO resources
May 30th, 2008 categories: Real Estate News
If you are like many homeowners in the Phoenix Real Estate Market and are facing diffucult times, here are some tips and resources that may be helpful.
- If you are behind on you mortgage payments -Contact the Lender Don’t ignore the lender, ask for the loss mitigation department.
- If you do not want to speak to the lender your self- Contact a HUD Approved Housing Counseling Agency:
- To find HUD Approved Housing Counseling Agencies, go to www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm?webListAction=search&searchstate=AZ or call (800) 569-4287 or TDD (800) 877-8339
These agencies include:
AZ LawHelp: www.azlawhelp.org/viewresults.cfm?mc=3&sc=20
NID-Housing Counseling Agency: www.nidonline.org/
The HUD-approved National Regional Housing Counseling Intermediaries also provides counseling resources: www.hud.gov/offices/hsg/sfh/hcc/nrhci.cfm
Information the Lender or Counselor Will Need:
- Loan Information
- Monthly income documentation (pay stubs, tax returns
- Monthly expense documentation (utilities, child care, car payments, etc.)
- Detailed account of any circumstances that have lead to an adverse financial setback
The lender may also require the homeowner to complete and return a loan workout package/hardship package which contains information, forms, and instructions, before the lender will discuss the options.
Possible Loan Workout Options
- Reinstatement: Paying the total amount owed in a lump sum by a specific date in exchange for forbearance.
- Forbearance: An agreement to reduce or suspend payments for a short period of time.
- Repayment Plan: An agreement to resume making monthly payments with a portion of the past due payments each month until they are caught up.
- Loan Modification: An agreement to change the terms of the original loan to make the payments more affordable. For example, missed payments can be added to the existing loan balance, the interest rate may be modified or the loan term extended.
- Claim Advance/ Partial Claim: If the loan is insured, the homeowner may qualify for an interest-free loan from the mortgage guarantor to bring the account current. If so, the homeowner will be required to sign a promissory note and a lien will be recorded against the home until the loan is paid in full.
Options to Avoid Foreclosure
If a loan workout or refinance is not an option, the homeowner’s best course may be to sell the home to avoid foreclosure. The lender may agree to a sale on the following terms:
- Work out sale: An agreement not to foreclose for a specific amount of time to allow the home to be sold and the loan to be paid off
- Short Sale: In a situation where there is more debt owing against a property than the property’s value, the lender may agree to allow the property to be sold for less than the loan amount and/or accept less than (or “short”) the amount owed as payment in full. There are tax implications and other issues to consider before entering into a short sale agreement. For more information, see NAR’s Field Guide to Short Sales,
- Assumption: The lender may allow a buyer to assume the loan and purchase the property even if the loan is non-assumable.
Deed-in-lieu of Foreclosure
The lender may allow a homeowner to “give back” the property. This option may not be available if there are other liens recorded against the property. For more information, go to:
HUD FAQs:
HUD Requirements: www.hud.gov/offices/hsg/sfh/nsc/rep/dilfact.pdf
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Phoenix tops in April home sales- True or False?
May 26th, 2008 categories: Market Statistics, Real Estate News
This is what azcentral.com is reporting. According to the article there were 4061 homes sold in Phoenix, with Mesa coming in second, followed by a close third from Scottsdale. They pulled data from April 1 to April 24 (not sure why they did not look at April 1- April 30)
With the recent article and fall out that ensued- regarding homes sales in April from Jay Butler- in which he included trustee sales, I looked at the data from ARMLS for home sales in Phoenix (the City of Phoenix) from April 1 to April 24, to see how the numbers compare:
Well maybe they have a typo- I looked at all dwelling types (SFH, condos, lofts etc) and ARMLS reports 633 sold properties in Phoenix, Mesa shows 300 homes sales and Scottsdale, according to ARML’s data shows 295 homes sold.
The number of sales in all areas that ARMLS serves which included Maricopa and Pinal counties and cities such as far reaching as Wickenburg- the total number of closed sales was 3223.
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Florence Real Estate-Looking for a Great Deal?
May 21st, 2008 categories: Florence Real Estate, Real Estate News
In preparation for a listing in Florence Arizona, I ran comps on the home I am going to list. Wow- how about a 1300 sft home for about $70,000? Sure it is in the outer lying areas of Phoenix, but if you do not have to commute, or looking for a vacation home what a steal.
Drive a few more miles and check out Anthem at Merrill Ranch 
- a Del Webb master planned community that features rock climbing, a skate park, golf, a water park, and a bustling community center-just a few of the great amenities that are located virtually in your own backyard. Enjoy golfing on our 18-hole championship golf course, Poston Butte Golf Glub, managed by Troon Golf. On a hot summer day check out the Big Splash Water Park.
Search all homes in Florence Arizona
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Vampires in Phoenix Arizona?
May 19th, 2008 categories: Real Estate News
Well probably not, but with the tempature in Phoenix today at 109 today, my dogs sleep all day and come to life when the sun goes down-much like a bat or vampire and after all they have those big canine teeth 
As a reminder if you are selling your home in Phoenix in the hot summer months here are some things to remember:
- Increase your watering schedule- Curb appeal and first impressions are important- buyers do not want to see a dead yard. Even if you no longer reside at the home you are trying to sell- it is important to keep up the landscaping.
- Keep the home cool and inviting for potential buyers. If the buyer is at the 10th home of the day, house hunting in the heat of the day- the last thing they want to do is look at a house that is not air conditioned- again- if your home is vacant- keep the air conditioning on at a tolerable level.
- If you have a pool- keep it sparkling clean and inviting- on a hot summer day a blue sparkling pool looks much better that a green, mosquito invested pool to a home buyer and besides that- Sheriff Joe will hunt you down.
- Offensive odors will be magnified 150% in an hot, closed up, air conditioned house- turning any home buyer running.
- Last but most important-bring your pet inside-it is too hot to leave them outside- as an agent- I am very accommodating to sellers with pets-
they are people too!! I 
always offer special services to my sellers with pets…
So at the bewitching hour of 12 mid- the vampires have come alive-Apollo is looking for someone to throw his ball, Jesse the rescue dog is finally eating and Waylon the Bloodhound, just wants to play and I will stay up until they all are ready to sleep for the night.
Search all Phoenix homes for sale
Please spay and neuter your pet.
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Scottsdale AZ-25th Best Place to Live
May 19th, 2008 categories: Real Estate News, Scottsdale
According to Fortune Small Business magazine, Scottsdale is ranked No. 25 among “The 100 Best Places to Live and Launch.” 
Oro Valley ranked 44th and Prescott ranked 92nd.
Scottsdale beat out Tempe and Gilbert because of its nightlife and downtown retail scene.
Writer/editor Maggie Overfelt wrote “Scottsdale fit the best-places bill with its large entrepreneurial community and high volume of tourist traffic, capped off by the ability to hike Camelback Mountain, golf, and dine at five-star restaurants, as well as it’s culture and nightlife”
As for the Scottsdale Real Estate scene: currently there are 4316 single family homes for sale and 1903 condos/townhomes for sale in Scottsdale.
There where 267 sales of single family homes in April 2008 and the average sales was $742,106, with the most expensive home selling for 7.75 mil and the least expensive sold for $154,900. Currently there are 375 pending sales.
Search all Scottsdale Homes for Sale
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Phoenix Real Estate-Foreclosure Trend
May 17th, 2008 categories: Phoenix Foreclosures, Real Estate News
RealtyTrac is reporting that there was a 4% increase in foreclosures in the month of April from the previous month-
The article goes on to state:
“Arizona foreclosure activity in April increased 26 percent from the previous month and 181 percent from April 2007, helping to bump the state’s foreclosure rate up to third highest among the states. Foreclosure filings were reported on 11,620 Arizona properties in March, one in every 224 total households.”
So I thought I would take a look at the trend in bank owned homes (REO) new listings in the Phoenix market for the last 9 months. There are currently 4851 REO listings for single family homes.
The data is extracted from the Arizona MLS system (ARMLS) and is deemed reliable but not guarenteed.
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Buyers camping out to buy homes in Phoenix?
May 13th, 2008 categories: Mesa Neighborhoods, Real Estate News
What year is this? 2005- no 2008-and buyers are camping out to buy homes? Check out the story
Blandford’s new community Mountain Bridge will start selling homes on Saturday.
“The developer plans to release at least 75 home sites Saturday morning and possibly more “if there’s enough latent demand,” said Joannie Flatt, a spokeswoman for the development.”
Apparently, the developer, Jeff Blandford plans to price the homes for the initial release at prices seen in 2002.
The models have been under construction the last few months with the sales office open for prospective buyers to see the homes under construction and view the plans for the community.
Mountain Bridge is south of McKellips Road, between Hawes and Ellsworth roads. There are some spectacular views of the city and mountains and just minutes from the last, yet completed, leg of the 202 freeway.
UpDate: Fox 10 news covered this story tonight (Wed May 14). People are camped out in RV’s and tents, hoping to get their choice lot. They even have a “mess” tents setup for campers to eat at. Many are repeat Blandford home owners and were very impressed with Blandford’s quality and customer service-my kind of builder. Should be interesting on Saturday.
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