Which Lender is refinancing the most mortgages for distressed AZ homeowners?

JP Morgan Chase is leading the way in refinancing the most Arizona mortgages for distressed residential AZ homeowners since the beginning of the year. However, Chase's rate reduction averaged only 1.85% off the mortgage interest rate while the other banks averaged a 2.05% rate reduction. Arizona Mortgage Refinances Chase 57% Wells Fargo 30% Citibank 11% Bank of America 1.5% Ally Bank 1% Bank of America's performance in refinancing for distressed AZ homeowners is pitiful. HOwever, Bank of America is leading the way in creating efficient short sale procedures for distressed homeowners. The face of short sales is soon to change as the Mortgage Debt Relief Act of 2007 fades away on December 31, 2012. This act allowed many homeowners who conducted a short sale before 12/31/2012 to not have to pay taxes on their deficiencies. With no follow up governmental policies at this time, AZ homeowners may not feel the benefit of a short sale outweighs the benefit of a foreclosure. With the short sale, homeowners do need to prove a hardship so they do need to submit numerous documents to their lender and then moves out toward the end of the transaction. With a foreclosure, the homeowner just quietly moves out of the house with no additional effort needed. And with AZ being an anti-deficiency state, homeowners know their deficiency in a foreclosure is usually forgiven, but their taxes on a deficiency are not. Currently the number of foreclosures in AZ has declined. This is largely due to the number of homeowners choosing to do short sales versus a foreclosure. I do think we will see a turnaround in these numbers in the first quarter of 2013 unless congress steps in and creates more benefits for short sale sellers.

Housing will never return to pre-crisis levels because baby boomers are aging and the next generation lacks the population numbers to support the credit and homeownership expansion that occurred in the decades leading up to the credit meltdown. The U.S. economy since the 1980s managed to subsidize spending in other areas by leaning on housing. Home equity loans were a major problem in the meltdown of the housing industry. The population growth after the boom basically drove consumption, and we had this remarkable increase in demand for housing. Now that the boomers are heading into retirement, future populations are smaller and it is unlikely housing will ever get back to the peak levels experienced before the 2008 financial crisis. We are not going to have the degree of credit availability that we had back in 2005. Despite housing still facing a great deal of uncertainty, Brian Montgomery, chairman of the Collingwood Group, told the same crowd that the nation can “expect mild to moderate improvement in the housing market.” Home prices are already ticking up, especially in AZ, he noted. But Montgomery conceded that rules drafted to fix housing, including the qualified mortgage rule, are still going to have a dramatic impact on the market. "Unwinding legislation is extremely difficult,” he said. “It’s almost impossible to unwind the CFPB (Consumer Financial Protection Bureau), but it doesn’t mean you can’t try to soften what they are trying to do. We need to make it easier for buyers to obtain loans before we will see a big improvement in the market.”

Another Real Estate Meltdown Not Likely..........

Housing will never return to pre-crisis levels because baby boomers are aging and the next generation lacks the population numbers to support the credit and homeownership expansion that occurred in the decades leading up to the credit meltdown. The U.S. economy since the 1980s managed to subsidize spending in other areas by leaning on housing. Home equity loans were a major problem in the meltdown of the housing industry. The population growth after the boom basically drove consumption, and we had this remarkable increase in demand for housing. Now that the boomers are heading into retirement, future populations are smaller and it is unlikely housing will ever get back to the peak levels experienced before the 2008 financial crisis. Credit availability is the second factor, We are not going to have the degree of credit availability that we had back in 2005. The nation can expect mild to moderate improvement in the housing market. Home prices are already ticking up, especially in AZ. But Montgomery conceded that rules drafted to fix housing, including the qualified mortgage rule, are still going to have a dramatic impact on the market. We need to make it easier for buyers to obtain loans before we will see a big improvement in the market.

Boulevard, Drive, Street ??? Which Name Gets More $$ ??

Which house would cost more...the one on Wisteria Lane or the one on Sesame Street? The name of the road could play a factor. As it turns out, homes on “boulevard” ($117) are the most expensive while the cheapest are those on “street” ($86) – that’s a 36% price difference! Although saying you live on “Whatchamacallit Road” may not sound that fancy, at $109 per square foot, homes located there are actually the third most expensive of any suffix type. In fact, the median home on a “road” is respectively 8% and 9% more expensive than those located on seemingly more upscale-sounding “court” and “circle.” Why is “boulevard” the most expensive address suffix? Well, while the word does have a sophisticated French origin, it actually might have more to do with the mix of the homes located there. Approximately, 37% of homes on “boulevards” are in multi-unit buildings, such as apartments and condos. In contrast, these types of homes make up no more than 16% of homes on every other address suffix. A greater concentration of multi-unit buildings could drive up costs as they are often located in denser, urban areas where space is at a premium. “Boulevard” may be the most expensive suffix but with only a 2% share of total listings, it’s certainly not the most prevalent one. In contrast, 22% of listings are located on a “drive.” That’s even more popular than “street” (19%), “road” (16%), and “avenue” (15%). Now back to our original question (in the title of this post) about Wisteria Lane and Sesame Street. So where are homes more expensive? Based on our analysis above, the price per square foot of Cookie Monster’s home could be 17% cheaper than Susan Mayer’s. Good thing – more leftover cash for cookies! Cookies!! Cookies!!!

$41 Million to go to Worthy AZ Homeowners for Foreclosure and Loan Restitution

The AZ Attorney's General Office has announce that $41 million dollars will be given to homeowners to help keep them in their houses and to provide restitution for borrowers who were treated unfairly by lenders. The plan says they will offer short-term cash assistance, loans and principal reductions for those who qualify. The money is coming from the major banks as part of a national $25 billion lender settlement resulting from foreclosures. The Attorney General is still seeking the right agency to administer the efforts. The Attorney General did say that they plan on "helping homeowners who acted responsibly and did not make bad homebuying decisions that left others paying for irresponsible behavior. " Consumers who believe they have been victims of mortgage schemes in Arizona are advised to call 602-542-1797, email mortgagefraud@azag.gov or go to azag.gov/consumer/foreclosure/settlement.html. Eligible homeowners will be contacted after they are identified by the plan's new administrator. The attorney general will handle enforcement and legal services. They are expecting these efforts to take up to three years. Arizona had been allotted nearly $98 million from the national lender settlement, but the state Legislature plans to take $50 million of the funding to offset the state's budget deficit. A lawsuit challenging that allocation has been file by AZ housing advocacy groups.

Like A Phoenix, Real Estate Values Are Rising From the Ashes !!! By Mary Drefs, GRI, CRS, CDPE Like a Phoenix, the Valley Area Real Estate Market is rising from the ashes. The Phoenix Area is leading the way in the rising real estate values and in the number of homes sold in the past 3 months compared to other major US cities. I assure you that your property has increased in value as well... unless, of course, your property has recently been plagued by a natural disaster such as a fire or flood. If you would like to learn of your PROPERTY'S CURRENT VALUE, visit www.MaryDrefs.com and fill out the Home Value Request form or click on the Home Value Request Button below. I promise to use the same parameters as an appraiser when sending you comparable properties. If you have recently learned that your family is slipping financially and your mortgage is burdensome, you may be a candidate for a short sale. We are successfully closing many short sales and some lenders have even streamlined the short sale process. To learn more about short sales, visit Click HERE and then contact Mary Drefs at 623-694-0354 . Mary will help you evaluate your situation and help you see if the time is right. You may be one of the lucky ones whose property is worth more than you thought and you might be able to conduct a traditional sale and walk away from your property with no credit repercussions. Keep thinking positive thoughts and as you walk through your house keep repeating, "You are rising in value. You are rising in value." Have a great September !!

How Will the Election Affect Real Estate Values?

Lately we have been getting questions about how the November election may affect the housing industry. With all the campaign ads we have been seeing and reading, we are constantly being reminded that the election may have a big impact on our economy. I can tell you that currently, foreclosures in Maricopa County, compared to one year ago, are down. This may be because owners are now better educated about their options and are seeking out more modifications and short sales instead of letting their homes foreclose. It may also be the result of the mortgage companies allowing property owners to miss more payments before recording the Notice of Trustee Sales and setting an auction date. It could also be the result of the slow down in the mass exodus from the state. Those homeowners who chose to leave the state due to the downturn in the economy have already done so and their homes have already been processed through the system. In the meantime, real estate values in the west valley are continuing to tick upward. If you took advantage of the market and purchased while prices are low, but kept your previous home until prices rose again, you may want to consider now selling it. I am seeing many owners putting their previous homes up on the market. The homes are selling very quickly and most still have multiple offers. It is difficult to say how real estate prices will be affected by the election because, at this point, we are not sure who will be elected. And once elected, will the Senate and the House cooperate with the sitting President's plan? As we get closer and the candidates solidify and advance their plans, we will have a better estimation as to real estate future values. If you want to learn the current value of your property, give Mary Drefs a call at 623-694-0354. If you did have a short sale a few years ago and want to see if you can buy again, give Mike Drefs a call at 623-693-1505. Or visit OUR WEBSITE. They both want to see you get the most out of your real estate investments.