Just a quick note for Buyers who feel like they are always getting beat out by other buyers on Short Sales and Foreclosures. ASK TO BE A BACK UP BUYER!
80% of my short sales do not sell to the first buyer. Why? The process feels long to the first buyer. They get all excited about purchasing the house and then are required to wait two months to hear if the seller's lender accepted their offer. As the days drag on, the first buyer's interest usually begins to wain. They begin wondering about the other house down the street, etc. Often by the time the seller's lender gives their approval, the first buyer has found another home that they think can close faster. Consequently, it is the 2nd or 3rd Back Up Buyer that actually ends up purchasing the house.
So buyers, don't be sad when you are not selected as the first buyer. Strategize and get in the 2nd or 3rd position. Chances are, you will be the one who eventually owns the home!
Monday, September 19, 2011
Thursday, September 8, 2011
CONDOS IN PHOENIX AREA ARE CHEAP, CHEAP, CHEAP! BUT LEARN THE FACTS!
Condos in the Phoenix area are currently are very inexpensive. When you are looking for a condo or townhouse, be sure to check into the financing requirement for each type of property. There are some significant differences on what is available and the lending rules for each. Be prepared, not disappointed.
Financing Townhouse and Condo Purchases
If you are looking to buy a townhouse or condominium, it's important to note there are some significant differences between the two.
A condo is more of a legal definition than anything, referring to how the property is owned and managed.
If you were to purchase a condo, as opposed to a townhouse, you would own just the structure.
The land under it would be part of the large parcel on which all the units and the common areas sit.
In a townhouse, you would own the land under their home.
In a condo, you will pay into a blanket condo insurance policy that covers the unit itself.
This insurance, by the way, covers the structure but none of the contents of individual units.
In a townhouse, you would pay for your own individual policy.
Services such as landscaping and repaving of the common parking lots will often be handled by both types of associations.
However, condo associations will be more likely to manage minor items such as trim painting and snow removal and major maintenance such as roof replacement.
Roof replacement is more specific to condos in that they are more likely to share common roofs. Thus, it would be challenging to replace specific sections of one part versus the entire roof itself.
For this reason, condo association dues can be significantly higher than dues for a townhouse. When you are looking to purchase a condo, make absolutely sure that you understand how much these dues are.
Expect them to increase over time, as maintenance expenses rise.
A major challenge that condo buyers and potential condo buyers alike may run into nowadays is that the development may not be on a list approved by the Federal Housing Administration (FHA) or the Fannie Mae.
So in order for you to buy a condo, an association will have to open up its books and provide a set of rules and regulations to the for review. Many times associations charge for this service.
Other consideratiosn with condos is the delinquent association dues and the mix of owner occupied units vs. non owner. This can be determined by a report from the HOA. These numbers have to fall into certain parameters in or order to qualify for financing. Homepath condos do not have the same restrictions.
Many condos right now in the Phoenix area are dirt cheap, but a little more difficult to finance. If you want to get in on these great investment opportunities, call Mike Drefs at 623-693-1505. He can help guide you thru the process and send you a list of available properties.
Financing Townhouse and Condo Purchases
If you are looking to buy a townhouse or condominium, it's important to note there are some significant differences between the two.
A condo is more of a legal definition than anything, referring to how the property is owned and managed.
If you were to purchase a condo, as opposed to a townhouse, you would own just the structure.
The land under it would be part of the large parcel on which all the units and the common areas sit.
In a townhouse, you would own the land under their home.
In a condo, you will pay into a blanket condo insurance policy that covers the unit itself.
This insurance, by the way, covers the structure but none of the contents of individual units.
In a townhouse, you would pay for your own individual policy.
Services such as landscaping and repaving of the common parking lots will often be handled by both types of associations.
However, condo associations will be more likely to manage minor items such as trim painting and snow removal and major maintenance such as roof replacement.
Roof replacement is more specific to condos in that they are more likely to share common roofs. Thus, it would be challenging to replace specific sections of one part versus the entire roof itself.
For this reason, condo association dues can be significantly higher than dues for a townhouse. When you are looking to purchase a condo, make absolutely sure that you understand how much these dues are.
Expect them to increase over time, as maintenance expenses rise.
A major challenge that condo buyers and potential condo buyers alike may run into nowadays is that the development may not be on a list approved by the Federal Housing Administration (FHA) or the Fannie Mae.
So in order for you to buy a condo, an association will have to open up its books and provide a set of rules and regulations to the for review. Many times associations charge for this service.
Other consideratiosn with condos is the delinquent association dues and the mix of owner occupied units vs. non owner. This can be determined by a report from the HOA. These numbers have to fall into certain parameters in or order to qualify for financing. Homepath condos do not have the same restrictions.
Many condos right now in the Phoenix area are dirt cheap, but a little more difficult to finance. If you want to get in on these great investment opportunities, call Mike Drefs at 623-693-1505. He can help guide you thru the process and send you a list of available properties.
Friday, August 19, 2011
A Trillion in Perspective.............
I heard an interesting analogy this week from Eldon Ploetz, an AZ RE instructor and a former bank executive.
If we were to stack $1 bills on top of each other at the rate of 1 per second and worked at it 24 hours per day, it would take us 11.57 days to stack $1 million.
How long would it take to stack a One Billion dollars? 11,574 days or 31.71 YEARS.
How long would it take to stack a Trillion Dollars? 31,710 years.
And,the National Deficit is reported to be 14.5 trillion dollars. That would mean we would need to stack $1 bill, 24 hours per day for 459,795 YEARS. That is a VERY long time. Obviously, our descendants will be dealing with this debt for years.
If we were to stack $1 bills on top of each other at the rate of 1 per second and worked at it 24 hours per day, it would take us 11.57 days to stack $1 million.
How long would it take to stack a One Billion dollars? 11,574 days or 31.71 YEARS.
How long would it take to stack a Trillion Dollars? 31,710 years.
And,the National Deficit is reported to be 14.5 trillion dollars. That would mean we would need to stack $1 bill, 24 hours per day for 459,795 YEARS. That is a VERY long time. Obviously, our descendants will be dealing with this debt for years.
Tuesday, August 9, 2011
How the S&P Ratings Affect the Housing Market
Per the Wall Street Journal, "When all is said and done, borrower psychology—and not mortgage rates—could face the bulk of any housing-market damage that stems from the Standard & Poor’s rating downgrades.
S&P downgraded the credit ratings of Fannie Mae and Freddie Mac on Monday morning to AA+ from AAA. That, of course, followed Friday’s rating cut for the United States.
The downgrades by themselves don’t appear to have done much to roil mortgage markets. The 10-year Treasury note, to which mortgage rates are closely tied, has fallen to a record low, which is good for mortgage rates."
Lawrence Yun, the chief economist for the National Association of Realtors says, “Even if [mortgage] rates were to rise because of the downgrade, this fact is less important in light of the current overly stringent underwriting standards and the general lack of consumer confidence about the economy. A 30-year fixed rate rising from 4.3% to 4.6% will not change the housing game that much, but a return to normal underwriting standards and a boost to consumer confidence will be the true game changer.”
What does this mean for you? Mortgage rates are Low, Low, Low so a house purchased now will have a low monthly payment. While others are crying over their stock values, take advantage and purchase a home at the lowest historical mortgage rate. Be the new Warren Buffett and buy when terms are favorable. You will have outsmarted most of your neighbors!
S&P downgraded the credit ratings of Fannie Mae and Freddie Mac on Monday morning to AA+ from AAA. That, of course, followed Friday’s rating cut for the United States.
The downgrades by themselves don’t appear to have done much to roil mortgage markets. The 10-year Treasury note, to which mortgage rates are closely tied, has fallen to a record low, which is good for mortgage rates."
Lawrence Yun, the chief economist for the National Association of Realtors says, “Even if [mortgage] rates were to rise because of the downgrade, this fact is less important in light of the current overly stringent underwriting standards and the general lack of consumer confidence about the economy. A 30-year fixed rate rising from 4.3% to 4.6% will not change the housing game that much, but a return to normal underwriting standards and a boost to consumer confidence will be the true game changer.”
What does this mean for you? Mortgage rates are Low, Low, Low so a house purchased now will have a low monthly payment. While others are crying over their stock values, take advantage and purchase a home at the lowest historical mortgage rate. Be the new Warren Buffett and buy when terms are favorable. You will have outsmarted most of your neighbors!
Tuesday, July 26, 2011
Cheaper to Own than Rent in Phoenix
Phoenix, AZ is one of the Top Five metro areas that favors home ownership versus renting, according to website Trulia. Currently, buying a home in the Phoenix area makes more financial sense than renting.
Because of the principles of supply and demand, renting has become more expensive than buying in our market.
What are the other Top 4 Metro areas where it is cheaper to Buy than Rent?
Miami, Las Vegas, Arlington,TX, and Mesa,AZ.
What do they all have in common? Lots of Sunshine!
Because of the principles of supply and demand, renting has become more expensive than buying in our market.
What are the other Top 4 Metro areas where it is cheaper to Buy than Rent?
Miami, Las Vegas, Arlington,TX, and Mesa,AZ.
What do they all have in common? Lots of Sunshine!
Friday, July 15, 2011
AZ Real Estate Update: FHA FORECLOSURE FREEZE PLAN TO HELP FEW
AZ Real Estate Update: FHA FORECLOSURE FREEZE PLAN TO HELP FEW: "FHA introduced a program last week allowing for up to twelve months of deferred house payments for those out of a job. It is called the FHA ..."
FHA FORECLOSURE FREEZE PLAN TO HELP FEW
FHA introduced a program last week allowing for up to twelve months of deferred house payments for those out of a job. It is called the FHA Foreclosure Freeze. It is for FHA LOANS ONLY. The borrower MUST BE UNEMPLOYED. NO debt is forgiven. It is a forbearance...i.e. The lender will allow you to live in the house without making payments for 3-12 months. When that grace period ends, you MUST RESUME making your payments and the missed payments will be tacked on to the back end of the loan so you will be paying for a longer period.
Please keep in mind that this is a VOLUNTEER PROGRAM for lender participation. Your lender may choose to not participate. The FHA is limiting the number of borrowers taking advantage of this program to 3,500 per month. That is a small number relative to the amount of FHA homeowners going into foreclosure across the country.
This FHA Foreclosure Freeze program may "help" a select few, but it will not have an impact on our current housing market. Those applying for this plan may be hurt by waiting for the lender's response and not acting on other viable solutions, i.e. short sale, loan modification, etc. This plan may actually increase a homeowner's debt on the loan if his/her lender chooses to penalize the homeowner for all the late payments.
It makes me angry to think of all the government money wasted on the manpower it took to create this weak program. We need an actual fix to help the housing market. This will not happen until politicians get out the lenders' back pockets and think independently. The politicians need to think more about the individual homeowner than about creating tax incentives and bonuses for the lenders.
Please keep in mind that this is a VOLUNTEER PROGRAM for lender participation. Your lender may choose to not participate. The FHA is limiting the number of borrowers taking advantage of this program to 3,500 per month. That is a small number relative to the amount of FHA homeowners going into foreclosure across the country.
This FHA Foreclosure Freeze program may "help" a select few, but it will not have an impact on our current housing market. Those applying for this plan may be hurt by waiting for the lender's response and not acting on other viable solutions, i.e. short sale, loan modification, etc. This plan may actually increase a homeowner's debt on the loan if his/her lender chooses to penalize the homeowner for all the late payments.
It makes me angry to think of all the government money wasted on the manpower it took to create this weak program. We need an actual fix to help the housing market. This will not happen until politicians get out the lenders' back pockets and think independently. The politicians need to think more about the individual homeowner than about creating tax incentives and bonuses for the lenders.
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