Many people are assuming that because our economy is so bad in AZ, that real estate sales must be slow and few. On the contrary, many current buyers who always dreamed of owning real estate in the sunshine are flocking in from othe US States AND Canada. The beauty of the Canadian buyer is that most are paying cash. Canadians fully realize the values that are currently available in Arizona and are buying it up. Some have the intention of owning a second home now and some are wishing to rent out the property for several years and then use that house as their second home in the future.
Most of the best values available are in the West Valley of Phoenix. Coupled with the growing entertainment and shopping opportunities, www.Westgate.com, www.ArizonaCardinals.com, www.PhoenixCoyotes.com, , the West Valley is the place for all the "smart & savvy" real estate buyers.
Monday, July 26, 2010
Friday, July 23, 2010
New Standards Due Nothing to Reel Fannie Mae and Freddie Mac In
Today's words of wisdom come from Diane Gerdes of The Mortgage Advantage. Thanks to Diane for clarifying what is happening on the national economic scene every week. This week our government is patting itself on the back for passing the Dodd-Frank Financial Reform Bill. However, they missed two major economic components that seem soon to derail any economic progress. Enjoy!
The Economic Cupcake by Diane Gerdes
"The Dodd-Frank Financial Reform bill signed on Wednesday was touted as the most sweeping financial bill since the Glass Steagal Act of 1933. (You remember that law, don't you? It's the one that the banks had repealed in 1999 and was ground zero for the global financial catastrophe). The hefty 2300 page bill signed into law by President Obama is structured to prevent future economic meltdowns. It allegedly gives tools to regulators so they can reel in the banks if they don't behave, but not enough to hurt their profits. The bill did manage to call for nearly 70 study groups, according to CNN Money, to analyze subjects such as fiduciary standards for brokers and analyzing reverse mortgages. It may be years before we feel the full effect of the law.
Two of the most terrifying man-made Frankenstein's living in Uncle Sam's house are Fannie Mae and Freddie Mac, with trillions of dollars in outstanding mortgages that they either own or have backed. The Dodd-Frank Bill did nothing to address their situation: they have cost the taxpayers more than the bail-out banks and auto companies combined.
Both Fannie and Freddie were quasi government entities given quotas for selling mortgages. It was a concoction that bred fraud. For instance, Countrywide Financial Corporation gave loan discounts to employees of Fannie Mae. Fannie and Freddie were both accused of fraudulent accounting practices resulting in huge bonuses for executives of both companies. They funneled campaign contributions to choice government representatives.
The Dodd-Frank Bill was designed to keep Main Street (us) safe from Wall Street (them). But somehow it overlooked the two-headed monster in the cellar... Fannie Mae and Freddie Mac."
The Economic Cupcake by Diane Gerdes
"The Dodd-Frank Financial Reform bill signed on Wednesday was touted as the most sweeping financial bill since the Glass Steagal Act of 1933. (You remember that law, don't you? It's the one that the banks had repealed in 1999 and was ground zero for the global financial catastrophe). The hefty 2300 page bill signed into law by President Obama is structured to prevent future economic meltdowns. It allegedly gives tools to regulators so they can reel in the banks if they don't behave, but not enough to hurt their profits. The bill did manage to call for nearly 70 study groups, according to CNN Money, to analyze subjects such as fiduciary standards for brokers and analyzing reverse mortgages. It may be years before we feel the full effect of the law.
Two of the most terrifying man-made Frankenstein's living in Uncle Sam's house are Fannie Mae and Freddie Mac, with trillions of dollars in outstanding mortgages that they either own or have backed. The Dodd-Frank Bill did nothing to address their situation: they have cost the taxpayers more than the bail-out banks and auto companies combined.
Both Fannie and Freddie were quasi government entities given quotas for selling mortgages. It was a concoction that bred fraud. For instance, Countrywide Financial Corporation gave loan discounts to employees of Fannie Mae. Fannie and Freddie were both accused of fraudulent accounting practices resulting in huge bonuses for executives of both companies. They funneled campaign contributions to choice government representatives.
The Dodd-Frank Bill was designed to keep Main Street (us) safe from Wall Street (them). But somehow it overlooked the two-headed monster in the cellar... Fannie Mae and Freddie Mac."
Thursday, July 22, 2010
Why Would I Want a HAFA Short Sale?
In theory, HAFA Short Sales should receive a quicker approval from the seller's lender than regular Short Sales. I say in theory because realtors are saying this is not always the case. Some Lenders, like Wachovia, are known for approving Short Sales in record time. Of course, all approval times are dependent on the investor's policies.
Word on the street is that currently only 10% of the HAFA Short Sale applications are being accepted as a HAFA sale. Most of the applicants are being rejected due to the income requirements.
Need to do a Short Sale? Give me a call at 623-694-0354
Word on the street is that currently only 10% of the HAFA Short Sale applications are being accepted as a HAFA sale. Most of the applicants are being rejected due to the income requirements.
Need to do a Short Sale? Give me a call at 623-694-0354
HAFA -- Fannie Mae and Freddie Mac Soon To Be Paticipating in HAFA
Beginning August 10th, 2010, Fannie Mae and Freddie Mac will be participating in the goverment's new HAFA program. Those who wish to apply for a HAFA short sale with these programs will need to first apply for the loan modification and then fill out the Short Sale Application. These forms should be submitted by your real estate agent to your lender. Applicants will still need to meet the program's requirements. See MakingHomeAffordable.gov for a list of the requirements. Better yet, contact a Short Sale Specialist. You can contact me at 623-694-0354.
Monday, July 12, 2010
Arizona Short Sales Booming
Suddenly our Short Sales business is booming! Our number of Avondale Short Sales has really picked up. I think it because sellers are becoming more familiar with the term short sale and now understand how the short sale can be beneficial. We have helped many families get out from under their mortgage debt. This area of my work is the most fulfilling. Many homeowners I meet would feel devestated if their house foreclosed. Most of the clients I meet are barely making ends meet. They are worn down and tired from all the financial stress.
This week we learned that Fannie Mae is no longer allowing auction dates to be postponed. This could have a huge impact on the number of foreclosures. With Fannie Mae short sales, we have to close before the first auction date posted on the Notice of Trustee Sale and on taxes. No longer do we get an extension because we have a contract on the house. Fannie Mae would rather foreclose than sell that house as a short sale when the auction date is looming. That does not sound like good business sense to me....but then again neither does a lot of government policy.
This week we learned that Fannie Mae is no longer allowing auction dates to be postponed. This could have a huge impact on the number of foreclosures. With Fannie Mae short sales, we have to close before the first auction date posted on the Notice of Trustee Sale and on taxes. No longer do we get an extension because we have a contract on the house. Fannie Mae would rather foreclose than sell that house as a short sale when the auction date is looming. That does not sound like good business sense to me....but then again neither does a lot of government policy.
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