FHA Repair Guidelines
October 2nd, 2008 categories: For Buyers, Phoenix Foreclosures, Real Estate News
If you are buying a home in Phoenix and plan to use FHA financing, there are some important things to consider regarding inspection findings.
FHA has shifted from the emphasis on repair of minor items and now only requires for conditions above and beyond minor cosmetic repairs or minor defects.
This is an important consideration, especially with the increasing number of Phoenix Foreclosures which are usually sold “As-is”. It is important that the buyer is aware of repairs that will be required by FHA, and if the seller refuses to make the repair, the cost may be passed on to the buyer, if they choose to proceed in purchasing the property.
Minor Property Repairs that will NOT require automatic repair:
- Missing handrails
- Cracked or damaged exit doors that are otherwise operable
- Cracked window glass
- Defective paint surfaces in homes constructed post 1978
- Minor plumbing leaks (leaky faucets)
- Defective floor finish or covering
- Evidence of previous (non-active) Wood Destroying Insects (Termites) where there is no evidence of structural damage
- Rotten or worn out counter tops
- Damaged plaster, sheetrock or other wall and ceiling materials in homes constructed post-1978
- Poor workmanship
- Trip hazards
- Crawl space with debris and trash
- Lack of an all weather driveway surface
Repairs that WILL require automatic repair for existing properties (list is not all inclusive):
- Inadequate access/egress from bedrooms to exterior of home
- Leaking or worn out roofs (if 3 or more layers of singles on leaking or worn out roof, all exsisting shingles must be removed before re-roofing)
- Evidence of structural problems (such as foundation damage caused by excessive settlement)
- Defective paint surfaces in homes constructed pre-1978
- Defective exterior paint surfaces in homes constructed post -1978 where the finish is otherwise unprotected
- Standing water against the foundation and/or excessively damp basements
- Hazardous materials on the site or within the improvements
- Faulty or defective mechanical systems (electrical, plumbing, or heating)
- Evidence of possible structural failure (e.g. settlement or bulging foundation wall)
Additionally, FHA no longer mandates inspections for the following items:
- Wood Destroying Insects (Termites)- in my opinion, all buyers should have this inspection.
- Well- however this inspection may be required per state or local jurisdiction
- Septic: again-may be required by state or local jurisdiction or if there is evidence of failure.
- Flat and or/unobservable roof.
For more information on FHA requirements visit www.hud.gov
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Help for Phoenix Home Owners Facing Foreclosure
September 10th, 2008 categories: For Buyers, Phoenix Foreclosures, Real Estate News
The Govener, Janet Napolitano, annouced today, a $13.6 million initiative designed to strengthen state efforts to meet the needs of Arizona families and communities hard hit by the economy
Housing Arizona, will expand services to homeowners and neighborhoods affected by mounting foreclosures, and for families and individuals facing homelessness. 
From the press release:
“Housing Arizona is supported with funds from the State Housing Trust Fund and includes $6.1 million to expand existing programs and $7.5 million in new resources to tackle the growing dilemma of homelessness and mortgage foreclosure. The Housing Trust Fund was created by the state legislature in 1988 to address the growing need for affordable housing across Arizona, and is the only source of flexible funding available for housing and community development, especially in rural Arizona.
The initiative funding, administered by the Arizona Department of Housing, will continue the eviction and foreclosure prevention programs across the state, match federal foreclosure counseling funds, support continued outreach to troubled homeowners, and provide state support to ensure the successful deployment of new federal dollars targeted to assisting neighborhoods severely impacted by foreclosures. “
Foreclosures in the Phoenix Real Estate market continue to rise, recent data suggests that more than 16,000 households faced foreclosure in the first six months of 2008.
If you are facing foreclosure, there is a state-funded foreclosure toll-free hotline (1-877-488-1211), where homeowners are matched with foreclosure counselors who guide them through the complexities of negotiating positive outcomes with lenders and servicers. These services are provided at no charge to the homeowner.
Help for Phoenix First Time Home Buyers
In addition to helping people facing foreclosure, the plan will also allocate $2 million for first-time homebuyers’ down payment assistance to help families take advantage of the affordable housing.
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More Changes for Phoenix Home Buyers
July 25th, 2008 categories: Mortgage and Lending, Real Estate News
As I wrote in my last post, with the Senate passing a new housing bill and the anticipation that the President will sign the bill, here are some of the ramifications of this new bill and the impact on home buyers in Phoenix as well as buyers across the country.
Included in the bill is the elimination of seller funded down payment assistance programs such as Ameridream, Nehemiah & Partners in Charity. FHA statistics show 
that Borrowers who take part in these arrangements go to foreclosure at nearly three times the rate of borrowers who put their own money down. If you are thinking of buying a home in Phoenix with a DPA program, act fast, buy now your time is limited.
FHA Loans-Up-front & Monthly MIP (Mortgage Insurance Premium)
All FHA loans used to be standardized with a 1.5% upfront MIP and a .50% factor for monthly mortgage insurance. Things are changing, now both upfront MIP and monthly rates are on a tier system based on down payment, loan term (15 or 30 years), credit score and use of traditional or non-traditional credit. Upfront MIP now ranges from 1.25% to 2%. The monthly factor now ranges from .25 - .55%. Remember, up-front MIP can be financed into the loan or paid in cash up front by buyer or seller. Monthly mortgage insurance is required on all FHA loans, regardless of down payment amount.
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Housing Crisis??
July 3rd, 2008 categories: Real Estate News
We are bombarded with negative news about the housing/mortgage crisis- the media makes it sound like we are all doomed- this video, looks at the “big” picture and paints a very different picture. Check out this video
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Short Sale vs Foreclosure-Selling your home in Phoenix
June 29th, 2008 categories: Mortgage and Lending, Phoenix Foreclosures, Selling a Home
I get ask from potential Phoenix home sellers that have to sell their homes- which is worse- a short sale or a foreclosure. 
Both will impact your ability to purchase a home in the future. There are some very important changes coming as Fannie Mae has announced changes that will be in affect starting August 1st 2008.
You cannot purchase a home under the following guidelines and time frames using Fannie Mae Conventional financing:
- Chapter 7 bankruptcy; 4 years
- Chapter 13 dismissed; 4 years
- Chapter 13 discharged; 2 years
- More than one bankruptcy filing in the past 7 years; 5 years
- Pre-Forclosure (short sale of home); 2 years
- Deed in lieu of foreclosure; 4 years
People with foreclosures will have the following restrictions placed on them:
- 5 year time period from completion date to finance or refinance without taking cash out a primary residence with a minimum of 10% down and a credit score of 680.
- 7 year time period from completion to finance a second home or investment property.
- 7 year time period from completion to take cash out of a refinance on any property regardless of occupancy type.
| Discussion: 4 Comments »
Foreclosures in Phoenix-Phoenix Real Estate
June 23rd, 2008 categories: Market Statistics, Phoenix Foreclosures
I get a lot of inquires from buyers looking to purchase Phoenix REO/Foreclosed homes in the Phoenix Real Estate market. I thought it would be interesting to see what the percentage of available listings in the Phoenix Real Estate market that are foreclosures. Here are the numbers in each of the East Valley cities. The data is for single family homes.
| City | Active Listings | REO Listings | % of Market Share |
|---|---|---|---|
| Gilbert | 2281 | 189 | 8.2% |
| Chandler | 2016 | 176 | 8.7% |
| Tempe | 548 | 23 | 4.2% |
| Queen Creek | 1750 | 250 | 14.3% |
| Phoenix | 10608 | 1843 | 17.3% |
| Maricopa | 846 | 151 | 17.8% |
| Mesa | 3440 | 358 | 10.4% |
| Scottsdale | 4164 | 152 | 3.6% |
As you can see- the outer lying areas of Queen Creek and Maricopa have been the hardest hit, but the number of Phoenix foreclosed homes is about the same as Maricopa and Queen Creek. Scottsdale is showing the least amount of foreclosures as you might expect. If you would like more information on homes for sale in the Phoenix area, or Phoenix foreclosures please email me at jamie_geiger@cox.net or call me at 480-216-4849
| Discussion: 3 Comments »
Neighbors taking back their Neighborhoods-Phoenix Real Estate
June 19th, 2008 categories: Phoenix Foreclosures, Phoenix Neighborhoods
I am hearing and reading more stories about neighbors in subdivisions throughout the Phoenix area- banding together to try and combat the problems of the foreclosure crisis.
Homeowners in Queen Creek have formed a HOA Congress to try to combat problems such as overgrown weeds, green pools and vandalism. 
Another friend of mine who lives in Skyline Ranch have already worked out a plan to keep the yard manicured for a home that is most likely the result of a “Buy and Bail”
In my sisters neighborhood of Mesquite Grove Estates located in Gilbert- one resident and pool builder, is taking the initiative to drain abandoned pools that pose a health hazard for his family and neighbors.
I just received an email from a co-worker asking for information where to get the fish that eat mosquito larve- the residents are willing to place the fish themselves if needed. The City of Chandler is using a mosquito fish, not native to Arizona, that will eat up to 50 to 100 larve a day.
The City of Chandler is urging people that live near homes that have been abandoned or pools that aren’t being maintained to call code enforcement at 480-782-4320.
Here are some other resources if you need help with a home that is causing a potential health problem in your area.
Maricopa County Sherriff- Report Green Pools.
Pinal County Sheriff -520-855-6200
The Phoenix Real Estate foreclosure crisis is far from over, but it is nice to see neighbors helping each other to do what they can to minmized the long lasting effects.
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You know when it is hot in Phoenix-When?
June 16th, 2008 categories: Phoenix Foreclosures
Your Border Collie, who loves to chase his ball, does not really care where it is.
You know it is hot in Phoenix, when your 5 hound dogs have those pretty pink tounges hanging low to the ground.
You know when it hot in Phoenix, when you go to show a vacant, Phoenix foreclosed home that has no electricity turned on, and you hope the buyer can look past their comfortablenesses and the sweat that is rolling down, everywhere.
You know it is hot in Phoenix, when you take your Phoenix home buyer to the back yard to see that pretty green pool .
If you are looking for a Phoenix area foreclosed home, be prepared to see some pretty horrific homes and pools, but there are some great deals and homes that are in great shape. If the Phoenix foreclosed homes are priced right and are in fair condition, be prepared for a multiple offer situation. You may need to offer more than the asking price and most likely your offer must be solid.
You know it is hot in Phoenix, when your dogs take on habits of a vampire.
If you would like a list of foreclosures in the Phoenix Real Estate Market, feel free to email me at jamie_geiger@cox.net or call me at 480-216-4849
| Discussion: 5 Comments »
