Arizona Real Estate Update- Avoid Arizona Foreclosure: Fannie Mae Backed Mortgage Loans

Arizona Real Estate Update- Avoid Arizona Foreclosure: Fannie Mae Backed Mortgage Loans: "In the past month, Fannie Mae has become stingy in granting extensions on auction dates even when the seller is in contract with a ready, wi..."

Fannie Mae Backed Mortgage Loans

In the past month, Fannie Mae has become stingy in granting extensions on auction dates even when the seller is in contract with a ready, willing, able buyer who is paying fair market value for a short sale property. This makes no sense to me because Fannie Mae is a government backed loan.
In almost every case, Fannie Mae would receive more money from the completion of the short sale. But, no, Fannie Mae refuses to extend the auction date so the short sale can be completed. Instead, they force the homeowner to go into foreclosure. When the house forecloses, the lender needs to take the house back and care for it. Now the lender needs to pay for the utilities,the lawyers, the pool service, the landscape service, and the commissions for the realtors involved in the new sale. Typically, the house comes back on the market for a lower price than what the short sale buyer was willing to pay. So, in the foreclosure, Fannie Mae receives less in the foreclosure sale than they would have received if they had waited a few weeks and completed the short sale. And,the foreclosure closes typically 3-4 months later than the original short sale closing date.
When Fannie Mae agrees to take this greater loss, who is the big loser. WE ALL ARE. The Fannie Mae loan is government backed. That means that loss increases our US deficit. Ultimately, you and I will pay for this loss thru our taxes.
We can only fight this process by contacting our US representatives and by voting for those politicians who are willing to fight for us and stop increasing the national debt.

Yea for Luke AFB !!!

Kuddos to the government for selecting Luke AFB as the number one site for the new F35's. It looks like Luke AFB will continue to bolster our local economy. We are very thankful for our local service personnel and think of freedom every time we hear a jet pass over.
Also, soon Luke AFB will have the largest solar plant on government grounds in the US. APS will be building this solar operation and upon completion it is expected to service over 3750 homes. Finally, we are using our most plentiful, free resource in Arizona...the sun!
Go Luke AFB! You Rock!!

DO FORECLOSURES HURT HOME VALUES???

A recent study by a MIT economist and 2 Harvard researchers concluded that a foreclosure reduces that home's value by an average of 27%. " In the study, “Forced Sales and House Prices,” which will be published in the American Economic Review, Pathak, Campbell and Giglio examined 1.8 million home sales in Massachusetts from 1987 to 2009. By looking in granular detail at real-estate prices, the researchers have concluded that a foreclosure reduces the value of a house by 27 percent, on average."

So, if my neighbor's house is foreclosing, will this affect the value of my house?
YES, The study concluded that a foreclosure reduces the surrounding home's values by an average of 9%. A bankruptcy in a neighborhood reduces the surrounding home's value by an average of 3%.
Short sales, a transaction in which the property can avoid becoming vacant, is increasingly sought after as a solution not only for homeowners facing foreclosure, but lenders looking to recoup more of their investment.
Interested in a Short Sale? Call me at 623-694-0354.