Here is the promised debrief from the Foreclosure Prevention conference I attended last week.
Probably the primary point of emphasis throughout the meeting was the statistic that over 50% of homeowners who are foreclosed on NEVER contact their lender.
"Lenders WANT to hear from people who are behind on their mortgages." (Wells Fargo VP for Residential Loans)
There are now many help sources for people looking at foreclosure. There is a national hotline at 888-995-HOPE and an Arizona Foreclosure Help Line at 877-448-1211. These are staffed with financial counselors who can help you sort through the problems and find SOLUTIONS that will increase your chances of staying in your home.
If you meet with a Housing Counselor, here is what you should bring:
1) Recent mortgage statement.
2) All your mortgage documents.
3) Bring all mail received from your lender (opened or not).
4) Draft a Hardship Letter detailing why you are having trouble making your payment.
5) List out all your monthly expenses.
6) Gather all the pay stubs for all household earners for the last two pay periods.
7) The last two months of your bank statements.
There is an excellent free Crisis Budget Workshop offered in the Phoenix area that will help couples get a firm hold on their finances. Banks will be much more willing to work something out if they see you are making a serious effort at budgeting your money. You can call 602-258-1659 or click here to see their website.
Regardless of your payment situation, a call to your lender is worth your time.
So, get help if you need it. There is plenty of that available.
If you are in foreclosure, free or low cost legal services in Maricopa County are available through Community Legal Services. They can be reached at 602-258-3434 or 1-800-852-9075.
If you are considering selling your home as a solution, go to my website for a free market analysis and other information.
I am just a phone call away if you have any questions. 602-370-1450
Richard
Wednesday, November 19, 2008
Weekly Real Estate News Update 11-19-2008
Here are the real estate news headlines for this week.
For local real estate information see my web site here.
Big jump in foreclosure counseling; Inman News
A report from the U.S. Department of Housing and Urban Development found a 55 percent increase in the number of families receiving foreclosure prevention counseling between 2006 and 2007, with growth expected to be much higher in 2008. HUD's report, "The State of the Housing Counseling Industry," revealed that of the approximately 136,000 families that completed this counseling during 2007, 45 percent were able to remain in their homes while 14 percent ultimately lost their home through foreclosure. Outcomes for the remaining 41 percent of clients are not known.
FDIC Details Plan To Alter Mortgages; Washington Post
Officials at the Federal Deposit Insurance Corp. yesterday detailed a plan to prevent 1.5 million foreclosures in the next year by offering financial incentives to companies that agree to sharply reduce monthly payments on mortgage loans.
Aid to Fannie, Freddie May Top Expectations; Washington Post
The first of the Bush administration's major financial takeovers, the seizure of Fannie Mae and Freddie Mac, is poised to get more expensive and some analysts are warning that it may ultimately cost more than the government has suggested.
Bernanke Says Central Bankers Ready for More Actions; Bloomberg
Federal Reserve Chairman Ben S. Bernanke said central bankers worldwide are prepared to take additional actions as needed to unfreeze credit markets, citing continued strains even amid ``tentative improvements.'' ``The continuing volatility of markets and recent indicators of economic performance confirm that challenges remain,'' Bernanke said today at a panel discussion hosted by the European Central Bank in Frankfurt. ``For this reason, policy makers will remain in close contact, monitor developments closely and stand ready to take additional steps should conditions warrant.''
Citigroup to lay off another 10,000 – report; CNN Money.com
Citigroup is getting ready to lay off thousands of workers and raise credit card interest rates, according to a published report Friday. The battered financial services company will be laying off 10,000 workers, on top of the 23,000 job cuts it has already made over the last four quarters, reported The Wall Street Journal. Citigroup will also be adding three percentage points to the interest rates of some credit card customers, the newspaper said.
For local real estate information see my web site here.
Big jump in foreclosure counseling; Inman News
A report from the U.S. Department of Housing and Urban Development found a 55 percent increase in the number of families receiving foreclosure prevention counseling between 2006 and 2007, with growth expected to be much higher in 2008. HUD's report, "The State of the Housing Counseling Industry," revealed that of the approximately 136,000 families that completed this counseling during 2007, 45 percent were able to remain in their homes while 14 percent ultimately lost their home through foreclosure. Outcomes for the remaining 41 percent of clients are not known.
FDIC Details Plan To Alter Mortgages; Washington Post
Officials at the Federal Deposit Insurance Corp. yesterday detailed a plan to prevent 1.5 million foreclosures in the next year by offering financial incentives to companies that agree to sharply reduce monthly payments on mortgage loans.
Aid to Fannie, Freddie May Top Expectations; Washington Post
The first of the Bush administration's major financial takeovers, the seizure of Fannie Mae and Freddie Mac, is poised to get more expensive and some analysts are warning that it may ultimately cost more than the government has suggested.
Bernanke Says Central Bankers Ready for More Actions; Bloomberg
Federal Reserve Chairman Ben S. Bernanke said central bankers worldwide are prepared to take additional actions as needed to unfreeze credit markets, citing continued strains even amid ``tentative improvements.'' ``The continuing volatility of markets and recent indicators of economic performance confirm that challenges remain,'' Bernanke said today at a panel discussion hosted by the European Central Bank in Frankfurt. ``For this reason, policy makers will remain in close contact, monitor developments closely and stand ready to take additional steps should conditions warrant.''
Citigroup to lay off another 10,000 – report; CNN Money.com
Citigroup is getting ready to lay off thousands of workers and raise credit card interest rates, according to a published report Friday. The battered financial services company will be laying off 10,000 workers, on top of the 23,000 job cuts it has already made over the last four quarters, reported The Wall Street Journal. Citigroup will also be adding three percentage points to the interest rates of some credit card customers, the newspaper said.
Tuesday, October 28, 2008
Home Tracker - Keep Track of Your Home's Value
Here is a challenging & fun electronic puzzle that has an interesting message.
Coldwell Banker's Home Tracker service will let you track the value of your home or any other home in the current market. You will get automatic updates every time the value of your home changes based on home sales in your neighborhood.
Give the puzzle a try and contact me at rahaworth@cox.net to set up your own free personal Home Tracker account. See if your kids can solve the puzzle quicker than you can (be careful betting on this).
Click the arrow on the puzzle to begin.
Richard
Coldwell Banker's Home Tracker service will let you track the value of your home or any other home in the current market. You will get automatic updates every time the value of your home changes based on home sales in your neighborhood.
Give the puzzle a try and contact me at rahaworth@cox.net to set up your own free personal Home Tracker account. See if your kids can solve the puzzle quicker than you can (be careful betting on this).
Click the arrow on the puzzle to begin.
Richard
Voting for Judge Retention in November 08
In an effort to reduce some of the confusion we all face when Judge Retention is on the ballot (as it will be in Nov '08), I am providing a link to a judge evaluation Blog that talks about this issue in detail.
WARNING: This Blog makes no bones about being conservatively oriented and so it is. But that is plan from the outset and can be factored in to what is presented there. It certainly characterizes judges as conservative or liberal. That much seems to be accurate.
This is the only internet resource I have been able to find that even TALKS about Judge Retention. I figure some information is better than going in blind.
You can click here to access this Blog.
Good luck.
Richard
WARNING: This Blog makes no bones about being conservatively oriented and so it is. But that is plan from the outset and can be factored in to what is presented there. It certainly characterizes judges as conservative or liberal. That much seems to be accurate.
This is the only internet resource I have been able to find that even TALKS about Judge Retention. I figure some information is better than going in blind.
You can click here to access this Blog.
Good luck.
Richard
Foreclosure Prevention
I have signed up to attend a Foreclosure Prevention/Loss Mitigation training session on November 14th. It is sponsored by the Federal Reserve Bank of San Francisco and the Arizona Foreclosure Prevention Committee. It will cover ways to avoid foreclosures by working with lending institutions and strategies to help homeowners stay in their homes.
Look for my post-training debrief here at the Blog.
Richard
Look for my post-training debrief here at the Blog.
Richard
Arizona Ballot Propositions
I wanted to give you a summary of two Ballot Propositions that will be voted on in Arizona in November. Both involve real estate. If you are an Arizona voter PLEASE READ THIS BEFORE YOU VOTE.
PROPOSITION 100
If passed, this Initiative would prohibit the State Legislature from enacting a real estate transfer tax when you sell or buy a home. This would be an additional tax over and above what we pay now. The Proposition would amend the State Constitution so that the Legislature could not override it by passing a law. With the current State Budget in the red by quite a bit, Proposition 100 will block the Legislature from enacting a real estate transfer tax as a way to help make up the state's substantial tax income shortfall. The Arizona Association of Realtors sponsored this Proposition and recommends a "yes" vote as do I.
PROPOSITION 201
This Propositon is a bit tricky. You have probably been seeing ads on both sides of this Proposition. At first blush it sounds good, More protection for home buyers and protection against the big builders. But, if some of the ads are to be believed, ANYONE can sue a home seller for up to 10 years after the sale. Evidently, it will apply to private home sellers as well as builders.
A home builder friend of mine predicted that if Prop 201 passes, new home building will be drastically curtailed because builders will not want to build homes in, what will be for them, a legally more risky environment. For me, that is an important consideration.
Read your voter materials on Prop 201 and make up your own mind. Remember, this is a long Proposition and with long ones the devil is often in the details.
Richard
PROPOSITION 100
If passed, this Initiative would prohibit the State Legislature from enacting a real estate transfer tax when you sell or buy a home. This would be an additional tax over and above what we pay now. The Proposition would amend the State Constitution so that the Legislature could not override it by passing a law. With the current State Budget in the red by quite a bit, Proposition 100 will block the Legislature from enacting a real estate transfer tax as a way to help make up the state's substantial tax income shortfall. The Arizona Association of Realtors sponsored this Proposition and recommends a "yes" vote as do I.
PROPOSITION 201
This Propositon is a bit tricky. You have probably been seeing ads on both sides of this Proposition. At first blush it sounds good, More protection for home buyers and protection against the big builders. But, if some of the ads are to be believed, ANYONE can sue a home seller for up to 10 years after the sale. Evidently, it will apply to private home sellers as well as builders.
A home builder friend of mine predicted that if Prop 201 passes, new home building will be drastically curtailed because builders will not want to build homes in, what will be for them, a legally more risky environment. For me, that is an important consideration.
Read your voter materials on Prop 201 and make up your own mind. Remember, this is a long Proposition and with long ones the devil is often in the details.
Richard
Thursday, October 16, 2008
You Don't Have To Loose Your Home
A national survey recently by the Mortgage Banks Association found that almost 50% of the people who have lost their homes to foreclosure never once contacted their lender.
That is probably the worst error a homeowner can make when they are having trouble making their mortgage payment.
There are scads of programs out there to help distressed homeowners work out SOLUTIONS to their payment program. Here are a couple ...
- Guide to Avoiding Foreclosure (U.S. Department of Housing and Urban Development)
- The HOPE NOW Alliance and the Homeowner’s HOPE Hotline (1-888-995-HOPE)
If you know anyone who is in mortgage trouble or is heading in that direction, have them look at the two links above or at least call their mortgage lender.
Help is available.
Richard
That is probably the worst error a homeowner can make when they are having trouble making their mortgage payment.
There are scads of programs out there to help distressed homeowners work out SOLUTIONS to their payment program. Here are a couple ...
- Guide to Avoiding Foreclosure (U.S. Department of Housing and Urban Development)
- The HOPE NOW Alliance and the Homeowner’s HOPE Hotline (1-888-995-HOPE)
If you know anyone who is in mortgage trouble or is heading in that direction, have them look at the two links above or at least call their mortgage lender.
Help is available.
Richard
Wednesday, October 01, 2008
Just for Fun - Ladies Over 40
Attributed to Andy Rooney of CBS's 60 Minutes TV program, the following is offered for your entertainment.
Richard
For all those ladies over 40
THIS IS PRICELESS!
In case you missed it on 60 Minutes, this is what Andy Rooney thinks about women over 40:
60 Minutes Correspondent Andy Rooney (CBS)
As I grow in age, I value women over 40 most of all. Here are just a few reasons why:
A woman over 40 will never wake you in the middle of the night and ask, 'What are you thinking?' She doesn't care what you think. If a woman over 40 doesn't want to watch the game, she doesn't sit around whining about it. She does something she wants to do, and it's usually more interesting. Women over 40 are dignified. They seldom have a screaming match with you at the opera or in the middle of an expensive restaurant. Of course, if you deserve it, they won't hesitate to shoot you if they think they can get away with it. Older women are generous with praise, often undeserved. They know what it's like to be unappreciated. Women get psychic as they age. You never have to confess your sins to a woman over 40. Once you get past a wrinkle or two, a woman over 40 is far sexier than her younger counterpart. Older women are forthright and honest. They'll tell you right off if you are a jerk if you are acting like one. You don't ever have to wonder where you stand with her. Yes, we praise women over 40 for a multitude of reasons. Unfortunately, it's not reciprocal. For every stunning, smart, well-coiffed, hot woman over 40, there is a bald, paunchy relic in yellow pants making a fool of himself with some 22-year old waitress. Ladies, I apologize.
For all those men who say, 'Why buy the cow when you can get the milk for free?', here's an update for you. Nowadays 80% of women are against marriage. Why? Because women realize it's not worth buying an entire pig just to get a little sausage!
Andy Rooney is a really smart guy!
Forward to five fine, fun, fabulous, fancy-free female friends over 40 or who have female friends over 40!
Here is nice saying:
Life isn't about waiting for the storm to pass...
It's about learning to dance in the rain.
Richard
For all those ladies over 40
THIS IS PRICELESS!
In case you missed it on 60 Minutes, this is what Andy Rooney thinks about women over 40:
60 Minutes Correspondent Andy Rooney (CBS)
As I grow in age, I value women over 40 most of all. Here are just a few reasons why:
A woman over 40 will never wake you in the middle of the night and ask, 'What are you thinking?' She doesn't care what you think. If a woman over 40 doesn't want to watch the game, she doesn't sit around whining about it. She does something she wants to do, and it's usually more interesting. Women over 40 are dignified. They seldom have a screaming match with you at the opera or in the middle of an expensive restaurant. Of course, if you deserve it, they won't hesitate to shoot you if they think they can get away with it. Older women are generous with praise, often undeserved. They know what it's like to be unappreciated. Women get psychic as they age. You never have to confess your sins to a woman over 40. Once you get past a wrinkle or two, a woman over 40 is far sexier than her younger counterpart. Older women are forthright and honest. They'll tell you right off if you are a jerk if you are acting like one. You don't ever have to wonder where you stand with her. Yes, we praise women over 40 for a multitude of reasons. Unfortunately, it's not reciprocal. For every stunning, smart, well-coiffed, hot woman over 40, there is a bald, paunchy relic in yellow pants making a fool of himself with some 22-year old waitress. Ladies, I apologize.
For all those men who say, 'Why buy the cow when you can get the milk for free?', here's an update for you. Nowadays 80% of women are against marriage. Why? Because women realize it's not worth buying an entire pig just to get a little sausage!
Andy Rooney is a really smart guy!
Forward to five fine, fun, fabulous, fancy-free female friends over 40 or who have female friends over 40!
Here is nice saying:
Life isn't about waiting for the storm to pass...
It's about learning to dance in the rain.
Official Buyer's Advisory for Arizona
Click on the link below to go to the Arizona Department of Real Estate's BUYER ADVISORY. This is an excellent resource for all sorts of community information and things you should know about buying a home.
Consider yourself a veteran home buyer? I'll bet you even money you will find something in the Advisory that is new.
My recommendation? Take time to take a look.
Click here to go to the advisory.
Richard
Consider yourself a veteran home buyer? I'll bet you even money you will find something in the Advisory that is new.
My recommendation? Take time to take a look.
Click here to go to the advisory.
Richard
Monday, September 22, 2008
August Statistics for Phoenix Home Market
Even though we are close to October, here are some statistics from August (the latest available) on new home permits,new home and resale sales. These are from RL Brown's newsletter. He is a long time and well respected real estate analyist who has been on the scene in the Phoenix area for many years.
Richard
--------------------------------
Relative to the following chart RL Brown says, “…the answers to the housing dilemma in Metro Phoenix in the days ahead are actually contained in this data, especially when coupled with a willingness to forget 2004-2005, and to look back at the market opportunities and solutions of the 2000-2003 period for strategies, structures, and business plans and positioning.”
NEW HOME CLOSINGS Aug 08
Sales for Month 1,634
Same Month Last Year 3,110
Percent Change -47.46%
Year to Date Closings 14,527
Year to Date Last Year 25,675
Percent Change -43.42%
PERMITS
Permits for Month 970
Same Month Last Year 2,705
Percent Change -64.14%
Year to Date Permits 10,708
Year to Date Last Year 25,927
Percent Change -58.70%
RESALES
Resales Last Month 5,285
Same Month Last Year 4,643
Percent Change 13.83%
Year to Date Resales 37,373
Year to Date Last Year 44,982
Percent Change -16.92%
The resale numbers reflect both Pinal and Maricopa and counts units by owner as well.
Richard
--------------------------------
Relative to the following chart RL Brown says, “…the answers to the housing dilemma in Metro Phoenix in the days ahead are actually contained in this data, especially when coupled with a willingness to forget 2004-2005, and to look back at the market opportunities and solutions of the 2000-2003 period for strategies, structures, and business plans and positioning.”
NEW HOME CLOSINGS Aug 08
Sales for Month 1,634
Same Month Last Year 3,110
Percent Change -47.46%
Year to Date Closings 14,527
Year to Date Last Year 25,675
Percent Change -43.42%
PERMITS
Permits for Month 970
Same Month Last Year 2,705
Percent Change -64.14%
Year to Date Permits 10,708
Year to Date Last Year 25,927
Percent Change -58.70%
RESALES
Resales Last Month 5,285
Same Month Last Year 4,643
Percent Change 13.83%
Year to Date Resales 37,373
Year to Date Last Year 44,982
Percent Change -16.92%
The resale numbers reflect both Pinal and Maricopa and counts units by owner as well.
Our FInancial Meltdown -The Real Beginning
At the risk of getting into hot water with some people, here is my perspective on how we got into the current financial mess in this country.
In order to solve a problem you must get back to where it actually started. So, with regard to the housing mess and governmental bailouts, where is that?
Well, the best explanation I have heard is that it all started with "Affordable Housing". How so? If you look at what toppled the mortgage market, Lehman Brothers, AIG and all the smaller banks taken over recently, behind it all are the questionable loans issued 3 -5 years ago.
No doc, adjustible rate and 80/20 (100%) loans (just to mention a few) put people in houses who really could not afford them. That subprime paper found its way to Freddie Mac, Fannie Mae, Lehman Brothers, AIG and many banks which bought these loans as part of investments portfolios.
Now there are mis-management situations with Freddie, Fanny, AIG and others. But if that subprime paper was not available, chances are the volume of bad investments would not have reached the crisis proportions we are seeing now.
There you have it. But for the "Affordable Housing" mantra from Washington politicians over the years, we would not be in the mess we have on our hands today.
Feel free to comment.
Richard
In order to solve a problem you must get back to where it actually started. So, with regard to the housing mess and governmental bailouts, where is that?
Well, the best explanation I have heard is that it all started with "Affordable Housing". How so? If you look at what toppled the mortgage market, Lehman Brothers, AIG and all the smaller banks taken over recently, behind it all are the questionable loans issued 3 -5 years ago.
No doc, adjustible rate and 80/20 (100%) loans (just to mention a few) put people in houses who really could not afford them. That subprime paper found its way to Freddie Mac, Fannie Mae, Lehman Brothers, AIG and many banks which bought these loans as part of investments portfolios.
Now there are mis-management situations with Freddie, Fanny, AIG and others. But if that subprime paper was not available, chances are the volume of bad investments would not have reached the crisis proportions we are seeing now.
There you have it. But for the "Affordable Housing" mantra from Washington politicians over the years, we would not be in the mess we have on our hands today.
Feel free to comment.
Richard
Tuesday, September 16, 2008
Short Sale Homes
While short sales are fairly simple in theory, many Realtors and buyers are finding them very frustrating. The primary problem is the weeks and weeks it takes for the bank or lender to respond to offers from interested buyers.
You see listings that say they have "Short Sale Expeditors" on hand to help. My experience with these expeditors is that they are of little real assistance as they don't do anything but call and pester the bank to make a decision on the offer (something that any Realtor could do by themselves).
Well, a Realtor in my office has tackled that problem head on. He will be debuting his short sale service shortly. He has gotten to know the real decision makers at many of the local banks and knows how to put a presentation together that they can decide on in a couple of hours instead of waiting weeks and weeks for someone at a lower level to make a decision.
If you or someone you know are about to be or are in the middle of a short sale problem and would like some help, give me a call at 602-370-1450 and I will hook you up with this Realtor for a frank evaluation of your short sale situation.
Richard
You see listings that say they have "Short Sale Expeditors" on hand to help. My experience with these expeditors is that they are of little real assistance as they don't do anything but call and pester the bank to make a decision on the offer (something that any Realtor could do by themselves).
Well, a Realtor in my office has tackled that problem head on. He will be debuting his short sale service shortly. He has gotten to know the real decision makers at many of the local banks and knows how to put a presentation together that they can decide on in a couple of hours instead of waiting weeks and weeks for someone at a lower level to make a decision.
If you or someone you know are about to be or are in the middle of a short sale problem and would like some help, give me a call at 602-370-1450 and I will hook you up with this Realtor for a frank evaluation of your short sale situation.
Richard
Phoenix Home Market Update for September 2008
We got a briefing today from our affilated mortgage company regarding future trends for the Phoenix area.
Our home pricing trends will be affected by several recent news items. First is a news item I heard on the radio several days ago announcing that a record number of "foreclosure related" letters will be going out to Phoenix area homeowners this month.
Second, the federal downpayment assistance programs for first time homebuyers are going away on October 1 of this year. And third, about 5,000 adjustable rate mortgages in the Phoenix area will be resetting before December.
All this adds up to fewer buyers eligible for loans and mortgage payment increases for 5,000 additional home owners.
So, it ain't over yet. Predictions are currently that the downward pressure on home prices will continue through most of 2009.
Two bright spots showed up however. Since the Fanny Mae and Freddie Mac takeovers by the government, mortgage rates have fallen back into the high 5% area. And, there are a lot of very good buys out there for homes. You need to be selective but you can find very good buys on good homes if you look around.
You takes your positive news where you can get it.
Contact me if you have questions that are specific you your particular home or financial situation.
Richard
Our home pricing trends will be affected by several recent news items. First is a news item I heard on the radio several days ago announcing that a record number of "foreclosure related" letters will be going out to Phoenix area homeowners this month.
Second, the federal downpayment assistance programs for first time homebuyers are going away on October 1 of this year. And third, about 5,000 adjustable rate mortgages in the Phoenix area will be resetting before December.
All this adds up to fewer buyers eligible for loans and mortgage payment increases for 5,000 additional home owners.
So, it ain't over yet. Predictions are currently that the downward pressure on home prices will continue through most of 2009.
Two bright spots showed up however. Since the Fanny Mae and Freddie Mac takeovers by the government, mortgage rates have fallen back into the high 5% area. And, there are a lot of very good buys out there for homes. You need to be selective but you can find very good buys on good homes if you look around.
You takes your positive news where you can get it.
Contact me if you have questions that are specific you your particular home or financial situation.
Richard
New Home Caution
Dear Friends,
Here is a story I found about new home sales. The circumstances are actually what has to happen when you buy a new home. And, believe it or not, I am not blowing my own horn when I advise you to use a Realtor (which costs you nothing) when buying a new home. Not all builders will try and pull this kind of stunt but in today's market builders are in troubled financial times (like we homeowners are), so the old adage of Buyer Beware applies.
Here is the story:
"A salesperson for a new home community shared this horror story with me.
This associate told me that a buyer went directly to the builder to negotiate a deal without Realtor representation. This buyer negotiated what he assumed was a good deal and was set to close on his inventory property about 45 days from contract signing.
After receiving copies of the contract the buyer signed that day, he patiently waited for his new home to be built. When the time of closing arrives the builders developer mentions that they never signed the selling side of the contracts and thus there is not an executed contract and did not have to honor the terms that were agreed to previously.
Meanwhile this buyer had his moving truck parked outside of the driveway and no home to move into. Eventually the buyer and the developer worked things out and the buyer purchased the home but of course on the seller's terms.
If I didn't hear this story from my friend I would have not believed it happened, but these confirm the reasons why buyers need representation when involving any type of real estate."
Here is a story I found about new home sales. The circumstances are actually what has to happen when you buy a new home. And, believe it or not, I am not blowing my own horn when I advise you to use a Realtor (which costs you nothing) when buying a new home. Not all builders will try and pull this kind of stunt but in today's market builders are in troubled financial times (like we homeowners are), so the old adage of Buyer Beware applies.
Here is the story:
"A salesperson for a new home community shared this horror story with me.
This associate told me that a buyer went directly to the builder to negotiate a deal without Realtor representation. This buyer negotiated what he assumed was a good deal and was set to close on his inventory property about 45 days from contract signing.
After receiving copies of the contract the buyer signed that day, he patiently waited for his new home to be built. When the time of closing arrives the builders developer mentions that they never signed the selling side of the contracts and thus there is not an executed contract and did not have to honor the terms that were agreed to previously.
Meanwhile this buyer had his moving truck parked outside of the driveway and no home to move into. Eventually the buyer and the developer worked things out and the buyer purchased the home but of course on the seller's terms.
If I didn't hear this story from my friend I would have not believed it happened, but these confirm the reasons why buyers need representation when involving any type of real estate."
Tuesday, September 02, 2008
Free Local Mortgage Counselling
If you are in trouble with your mortgage or think you may be in the future, this will interest you. What is below is from my local Real Estate Board's newsletter.
Sign Up TODAY! - Open Forum (September 3-6th) to Kick off 3-day Anti-foreclosure Event in Surprise
Surprise AZ (August 1, 2008) An open community conversation featuring a panel of experts on home finance is set for September 3, kicking off a three-day event where residents with mortgage related worries can get free counseling on how to hang on to their homes.
The forum, approved by the Surprise City Council and organized by the Ad Hoc Committee on Foreclosures and Credit Union West, will begin 7 at p.m. at Radiant Church at the corner of Reems Road and Paradise Lane in Surprise. Expert panelists will respond to written questions from the audience or questions e-mailed through a city web site.
On September 4, 5 and 6, forum attendees can meet with HUD-certified counselors for free one-on-one counseling about issues relating to home finance. Sign up for the free appointments is available at the forum event on September 3.
“As in many communities around the country, there are people in Surprise who are concerned about losing their homes," says Ad Committee on Foreclosure Chair Monica Davis. “We are being proactive here in Surprise. A good way to get people started on the path of retaining home ownership is by offering an educational forum and free counseling.”
More information on the forum and counseling is available at www.surpriseaz.com. The site includes an e-mail link for residents to send questions for the panel to consider, and a video about the event and the free counseling.
The community forum will be videotaped by city cable channel Surprise11, which streams live on the internet. A video file of the forum will be posted on the net for viewing at any time.
Sign Up TODAY! - Open Forum (September 3-6th) to Kick off 3-day Anti-foreclosure Event in Surprise
Surprise AZ (August 1, 2008) An open community conversation featuring a panel of experts on home finance is set for September 3, kicking off a three-day event where residents with mortgage related worries can get free counseling on how to hang on to their homes.
The forum, approved by the Surprise City Council and organized by the Ad Hoc Committee on Foreclosures and Credit Union West, will begin 7 at p.m. at Radiant Church at the corner of Reems Road and Paradise Lane in Surprise. Expert panelists will respond to written questions from the audience or questions e-mailed through a city web site.
On September 4, 5 and 6, forum attendees can meet with HUD-certified counselors for free one-on-one counseling about issues relating to home finance. Sign up for the free appointments is available at the forum event on September 3.
“As in many communities around the country, there are people in Surprise who are concerned about losing their homes," says Ad Committee on Foreclosure Chair Monica Davis. “We are being proactive here in Surprise. A good way to get people started on the path of retaining home ownership is by offering an educational forum and free counseling.”
More information on the forum and counseling is available at www.surpriseaz.com. The site includes an e-mail link for residents to send questions for the panel to consider, and a video about the event and the free counseling.
The community forum will be videotaped by city cable channel Surprise11, which streams live on the internet. A video file of the forum will be posted on the net for viewing at any time.
Wednesday, July 30, 2008
Presidential Candidates Tax Plans
With the election news running hot and heavy, I received a summary of some of the tax proposals put forward by John McCain and Barak Obama.
The ones of particular interest to home owners are the capital gains tax when you sell your home and dividend taxes.
These proposals are undoubtedly subject to change but for now this is what the candidates appear to be saying.
We are in for an interesting ride.
Richard
-----------------------------------------------
INTERESTING DATA ON TAXES
Proposed changes in taxes after the 2008 General election:
CAPITAL GAINS TAX
MCCAIN ?
0% on home sales up to $500,000 per home (couples). McCain
does not propose any change in existing home sales income tax.
OBAMA ?
28% on profit from ALL home sales
How does this affect you? ?If you sell your home and make a
profit, you will pay 28% of your gain on taxes. If you are
heading toward retirement and would like to down-size your
home or move into a retirement community, 28% of the money
you make from your home will go to taxes. This proposal
will adversely affect the elderly who are counting on the
income from their homes as part of their retirement income.
DIVIDEND TAX
MCCAIN ? 15% (no change)
OBAMA ? 39.6%
How will this affect you? If you have any money invested in
stock market, IRA, CDs, mutual funds, college funds, life
insurance, retirement accounts, or anything that pays or
reinvests dividends, you will now be paying nearly 40% of
the money earned on taxes if Obama becomes president.
The ones of particular interest to home owners are the capital gains tax when you sell your home and dividend taxes.
These proposals are undoubtedly subject to change but for now this is what the candidates appear to be saying.
We are in for an interesting ride.
Richard
-----------------------------------------------
INTERESTING DATA ON TAXES
Proposed changes in taxes after the 2008 General election:
CAPITAL GAINS TAX
MCCAIN ?
0% on home sales up to $500,000 per home (couples). McCain
does not propose any change in existing home sales income tax.
OBAMA ?
28% on profit from ALL home sales
How does this affect you? ?If you sell your home and make a
profit, you will pay 28% of your gain on taxes. If you are
heading toward retirement and would like to down-size your
home or move into a retirement community, 28% of the money
you make from your home will go to taxes. This proposal
will adversely affect the elderly who are counting on the
income from their homes as part of their retirement income.
DIVIDEND TAX
MCCAIN ? 15% (no change)
OBAMA ? 39.6%
How will this affect you? If you have any money invested in
stock market, IRA, CDs, mutual funds, college funds, life
insurance, retirement accounts, or anything that pays or
reinvests dividends, you will now be paying nearly 40% of
the money earned on taxes if Obama becomes president.
Tuesday, July 29, 2008
Phoenix Market Update for August 2008
The real estate news still has two sides to it. On the positive side, buyers are arriving on the scene in increasing numbers. Investors make up a significant portion as there are some very good bargains out there especially in the bank owned and short sale properties. Short sales have their long wait times and most are selling "as is" with no provision for repairs. The good news is that the price often reflects the true condition of the property.
On the down side, a recent Arizona Republic article headline said "Foreclosure Pain Felt In All Markets". The article quoted Phoenix Residential expert RL Brown who said that Valley data shows nothing "particularly sinister" but is a reflection of what is happening across the metro Phenix area because of sub-prime loans resetting and the economy generally slowing down.
So, we are not through this buyer's market phase yet. But the ratio of homes for sale versus those that are sold in a given month is narrowing (getting better) and if that trend continues it will eventually lead us to a more normal market scene.
If you don't have to sell then don't. If you want to pick up an investment property in Sun City, Surprise, Litchfield Park, Avondale or Goodyear, now is a good time to be looking.
As always, I can help locate a good property at a great price. Give me a call or send me an email if you are interested.
Richard
On the down side, a recent Arizona Republic article headline said "Foreclosure Pain Felt In All Markets". The article quoted Phoenix Residential expert RL Brown who said that Valley data shows nothing "particularly sinister" but is a reflection of what is happening across the metro Phenix area because of sub-prime loans resetting and the economy generally slowing down.
So, we are not through this buyer's market phase yet. But the ratio of homes for sale versus those that are sold in a given month is narrowing (getting better) and if that trend continues it will eventually lead us to a more normal market scene.
If you don't have to sell then don't. If you want to pick up an investment property in Sun City, Surprise, Litchfield Park, Avondale or Goodyear, now is a good time to be looking.
As always, I can help locate a good property at a great price. Give me a call or send me an email if you are interested.
Richard
Arizona Pictures
I thought you might enjoy looking at some of my Arizona pictures. These are some of my favorite subjects and they can be seen all over Arizona at some time of the year.
You can click on any one picture to see a larger view.
For your enjoyment!
Richard
You can click on any one picture to see a larger view.
For your enjoyment!
Richard
Wednesday, July 09, 2008
Selling? Depersonalize Your Home!
I should have written on this topic some time ago. I apologize for my procrastination. The topic? Adjusting your attitude when selling your home.
What do I mean by that? Here is an example. Nice listing, priced OK, plenty of upgrades, very clean and in a good Avondale neighborhood. The house did not sell and did not sell and . . . well, you get the picture.
The problem? The lady of the house did not allow many open houses. She "didn't want all those strangers trapsing through her home." See the problem? It was still "her" home. That attitude not only kept open houses minimal but actually turned away buyers sometimes before they got to the front door.
I finally had a talk with the husband (who wanted to move to his new job) and told him about his wife's attitude. I was reasonably sure that he would mention what I said to his wife. Two weeks later, we had a contract and the home closed.
Whether you believe in The Force from Star Wars or not, attitude can make a huge difference in how long it takes to sell a home. I usually tackle this head on when I spot it and it resolves.
Have you ever watched a show called the Dog Whisperer on the NATGO channel? Time and again dogs pick up the attitudes of the people around them. The show's host spends as much time working on the people's attitudes as he does working with the dog. Attitudes effect more than dogs. They can effect buyers!!
So "depersonalize" your home so a prospective buyer doesn't have to struggle to visualize the home as their own. Take down collections of family pictures, diplomas and personal momentos. Use new home models as your guide. No clutter and no personal items. It makes it much easier for buyers imagine that house as their home.
What do I mean by that? Here is an example. Nice listing, priced OK, plenty of upgrades, very clean and in a good Avondale neighborhood. The house did not sell and did not sell and . . . well, you get the picture.
The problem? The lady of the house did not allow many open houses. She "didn't want all those strangers trapsing through her home." See the problem? It was still "her" home. That attitude not only kept open houses minimal but actually turned away buyers sometimes before they got to the front door.
I finally had a talk with the husband (who wanted to move to his new job) and told him about his wife's attitude. I was reasonably sure that he would mention what I said to his wife. Two weeks later, we had a contract and the home closed.
Whether you believe in The Force from Star Wars or not, attitude can make a huge difference in how long it takes to sell a home. I usually tackle this head on when I spot it and it resolves.
Have you ever watched a show called the Dog Whisperer on the NATGO channel? Time and again dogs pick up the attitudes of the people around them. The show's host spends as much time working on the people's attitudes as he does working with the dog. Attitudes effect more than dogs. They can effect buyers!!
So "depersonalize" your home so a prospective buyer doesn't have to struggle to visualize the home as their own. Take down collections of family pictures, diplomas and personal momentos. Use new home models as your guide. No clutter and no personal items. It makes it much easier for buyers imagine that house as their home.
Friday, May 09, 2008
Improvement in the Real Estate Market??
This is a longish post but worth reading. It is a recent article from the Wall Street Journal on the future trends of our national real estate market. You have to filter what you read in the press. Here is some counterpoint to the current climate of doom and gloom.
Richard
The Housing Crisis is Over -
Wall Street Journal, By Cyril Moulle-Berteaux
May 6, 2008
The dire headlines coming fast and furious in the financial and popular press suggest that the housing crisis is intensifying. Yet it is very likely that April 2008 will mark the bottom of the U.S. housing market. Yes, the housing market is bottoming right now.
How can this be? For starters, a bottom does not mean that prices are about to return to the heady days of 2005. That probably won't happen for another 15 years. It just means that the trend is no longer getting worse, which is the critical factor.
Most people forget that the current housing bust is nearly three years old. Home sales peaked in July 2005.
New home sales are down a staggering 63% from peak levels of 1.4 million. Housing starts have fallen more than 50%, and, adjusted for population growth, are back to the trough levels of 1982.
Furthermore, residential construction is close to 15-year lows at 3.8% of GDP; by the fourth quarter of this year, it will probably hit the lowest level ever. So what's going to stop the housing decline? Very simply, the same thing that caused the bust: affordability.
The boom made housing unaffordable for many American families, especially first-time home buyers. During the 1990s and early 2000s, it took 19% of average monthly income to service a conforming mortgage on the average home purchased. By 2005 and 2006, it was absorbing 25% of monthly income. For first time buyers, it went from 29% of income to 37%. That just proved to be too much.
Prices got so high that people who intended to actually live in the houses they purchased (as opposed to speculators) stopped buying. This caused the bubble to burst.
Since then, house prices have fallen 10%-15%, while incomes have kept growing (albeit more slowly recently) and mortgage rates have come down 70 basis points from their highs. As a result, it now takes 19% of monthly income for the average home buyer, and 31% of monthly income for the first-time home buyer, to purchase a house. In other words, homes on average are back to being as affordable as during the best of times in the 1990s. Numerous households that had been priced out of the market can now afford to get in.
The next question is: Even if home sales pick up, how can home prices stop falling with so many houses vacant and unsold? The flip but true answer: because they always do.
In the past five major housing market corrections (and there were some big ones, such as in the early 1980s when home sales also fell by 50%-60% and prices fell 12%-15% in real terms), every time home sales bottomed, the pace of house-price declines halved within one or two months.
The explanation is that by the time home sales stop declining, inventories of unsold homes have usually already started falling in absolute terms and begin to peak out in "months of supply" terms. That's the case right now: New home inventories peaked at 598,000 homes in July 2006, and stand at 482,000 homes as of the end of March. This inventory is equivalent to 11 months of supply, a 25-year high -- but it is similar to 1974, 1982 and 1991 levels, which saw a subsequent slowing in home-price declines within the next six months.
Inventories are declining because construction activity has been falling for such a long time that home completions are now just about undershooting new home sales. In a few months, completions of new homes for sale could be undershooting new home sales by 50,000-100,000 annually.
Inventories will drop even faster to 400,000 -- or seven months of supply -- by the end of 2008.
This shift in inventories will have a significant impact on prices, although house prices won't stop falling entirely until inventories reach five months of supply sometime in 2009. A five-month supply has historically signaled tightness in the housing market.
Many pundits claim that house prices need to fall another 30% to bring them back in line with where they've been historically. This is usually based on an analysis of house prices adjusted for inflation: Real house prices are 30% above their 40-year, inflation-adjusted average, so they must fall 30%. This simplistic analysis is appealing on the surface, but is flawed for a variety of reasons.
Richard
The Housing Crisis is Over -
Wall Street Journal, By Cyril Moulle-Berteaux
May 6, 2008
The dire headlines coming fast and furious in the financial and popular press suggest that the housing crisis is intensifying. Yet it is very likely that April 2008 will mark the bottom of the U.S. housing market. Yes, the housing market is bottoming right now.
How can this be? For starters, a bottom does not mean that prices are about to return to the heady days of 2005. That probably won't happen for another 15 years. It just means that the trend is no longer getting worse, which is the critical factor.
Most people forget that the current housing bust is nearly three years old. Home sales peaked in July 2005.
New home sales are down a staggering 63% from peak levels of 1.4 million. Housing starts have fallen more than 50%, and, adjusted for population growth, are back to the trough levels of 1982.
Furthermore, residential construction is close to 15-year lows at 3.8% of GDP; by the fourth quarter of this year, it will probably hit the lowest level ever. So what's going to stop the housing decline? Very simply, the same thing that caused the bust: affordability.
The boom made housing unaffordable for many American families, especially first-time home buyers. During the 1990s and early 2000s, it took 19% of average monthly income to service a conforming mortgage on the average home purchased. By 2005 and 2006, it was absorbing 25% of monthly income. For first time buyers, it went from 29% of income to 37%. That just proved to be too much.
Prices got so high that people who intended to actually live in the houses they purchased (as opposed to speculators) stopped buying. This caused the bubble to burst.
Since then, house prices have fallen 10%-15%, while incomes have kept growing (albeit more slowly recently) and mortgage rates have come down 70 basis points from their highs. As a result, it now takes 19% of monthly income for the average home buyer, and 31% of monthly income for the first-time home buyer, to purchase a house. In other words, homes on average are back to being as affordable as during the best of times in the 1990s. Numerous households that had been priced out of the market can now afford to get in.
The next question is: Even if home sales pick up, how can home prices stop falling with so many houses vacant and unsold? The flip but true answer: because they always do.
In the past five major housing market corrections (and there were some big ones, such as in the early 1980s when home sales also fell by 50%-60% and prices fell 12%-15% in real terms), every time home sales bottomed, the pace of house-price declines halved within one or two months.
The explanation is that by the time home sales stop declining, inventories of unsold homes have usually already started falling in absolute terms and begin to peak out in "months of supply" terms. That's the case right now: New home inventories peaked at 598,000 homes in July 2006, and stand at 482,000 homes as of the end of March. This inventory is equivalent to 11 months of supply, a 25-year high -- but it is similar to 1974, 1982 and 1991 levels, which saw a subsequent slowing in home-price declines within the next six months.
Inventories are declining because construction activity has been falling for such a long time that home completions are now just about undershooting new home sales. In a few months, completions of new homes for sale could be undershooting new home sales by 50,000-100,000 annually.
Inventories will drop even faster to 400,000 -- or seven months of supply -- by the end of 2008.
This shift in inventories will have a significant impact on prices, although house prices won't stop falling entirely until inventories reach five months of supply sometime in 2009. A five-month supply has historically signaled tightness in the housing market.
Many pundits claim that house prices need to fall another 30% to bring them back in line with where they've been historically. This is usually based on an analysis of house prices adjusted for inflation: Real house prices are 30% above their 40-year, inflation-adjusted average, so they must fall 30%. This simplistic analysis is appealing on the surface, but is flawed for a variety of reasons.
Monday, February 25, 2008
Light at the End of the Tunnel? - Resale Home Sales - Jan 2008
The National Association of Realtors (NAR) has released its updated resale home sales figures for January 2008 and there is at least a bit of good news.
In one section of the country sales actually picked up in January (Midwest) and had very small decreases in to other areas (South and overall for the USA).
In the West (our section) there was a further decline of 2.1% with a total for 2007 of a 28.5% decrease.
Sale prices increased in the Northeast and declined in the rest of the country. . In the west there has been an average 6.7% decline over the past year. We have some local neighborhoods which have experienced a greater decline. Overall, the Phoenix area decline is probably more than the average for the western section of the country.
The real bright spot is the NAR analyist said that he sees a turnaround nationally possibly as soon as this Summer.
So hang on, there may be a viable light at the end of this tunnel in the not too distant future.
For a scuccessful selling strategy in this type of market, see the post here from October 25, 2007 (in the archives).
In one section of the country sales actually picked up in January (Midwest) and had very small decreases in to other areas (South and overall for the USA).
In the West (our section) there was a further decline of 2.1% with a total for 2007 of a 28.5% decrease.
Sale prices increased in the Northeast and declined in the rest of the country. . In the west there has been an average 6.7% decline over the past year. We have some local neighborhoods which have experienced a greater decline. Overall, the Phoenix area decline is probably more than the average for the western section of the country.
The real bright spot is the NAR analyist said that he sees a turnaround nationally possibly as soon as this Summer.
So hang on, there may be a viable light at the end of this tunnel in the not too distant future.
For a scuccessful selling strategy in this type of market, see the post here from October 25, 2007 (in the archives).
Monday, January 14, 2008
Extend The Life Of Your Clothes Dryer - Improve Safety
This story comes from a friend of mine. It is worth reading to keep your home safe.
INFO ABOUT CLOTHES DRYERS
The heating unit went out on my dryer! The gentleman that fixes things around the house for us told us that he wanted to show us something. He went over to the dryer and pulled out the lint filter.
It was clean (I always clean the lint from the filter after every load of clothes.) He told us that he wanted to show us something; he took the filter over to the sink, ran hot water over it.
The lint filter is made of a mesh material - I'm sure you know what your dryer's lint filter looks like. WELL...the hot water just sat on top of the mesh! It didn't go through it at all! He told us that dryer sheets cause a film over that mesh that's what burns out the heating unit.
You can't SEE the film , but it's there. It's what is in the dryer sheets to make your clothes soft and static free - that nice fragrance too, you know how they can feel waxy when you take them out of the box, well this stuff builds up on your clothes and on your lint screen.
This is also what causes dryer units to over heat and catch fire! He said the best way to keep your dryer working for a very long time (& to keep your electric bill lower) is to take that filter out & wash it with hot soapy water & an old toothbrush (or other brush) at least every six months. He said that makes the life of the dryer at least twice as long! How about that!?!
Learn something new everyday! I certainly didn't know dryer sheets would do that. So , I thought I'd share! Note: I went to my dryer & tested my screen by running water on it. The water ran through a little bit but mostly collected all the water in the mesh screen. I washed it with warm soapy water & a nylon brush & I had it done in 30 seconds. Then when I rinsed it the water ran right through the screen! There wasn't any puddling at all!
That repairman knew what he was talking about!
Happy Clothes Washing
Richard
INFO ABOUT CLOTHES DRYERS
The heating unit went out on my dryer! The gentleman that fixes things around the house for us told us that he wanted to show us something. He went over to the dryer and pulled out the lint filter.
It was clean (I always clean the lint from the filter after every load of clothes.) He told us that he wanted to show us something; he took the filter over to the sink, ran hot water over it.
The lint filter is made of a mesh material - I'm sure you know what your dryer's lint filter looks like. WELL...the hot water just sat on top of the mesh! It didn't go through it at all! He told us that dryer sheets cause a film over that mesh that's what burns out the heating unit.
You can't SEE the film , but it's there. It's what is in the dryer sheets to make your clothes soft and static free - that nice fragrance too, you know how they can feel waxy when you take them out of the box, well this stuff builds up on your clothes and on your lint screen.
This is also what causes dryer units to over heat and catch fire! He said the best way to keep your dryer working for a very long time (& to keep your electric bill lower) is to take that filter out & wash it with hot soapy water & an old toothbrush (or other brush) at least every six months. He said that makes the life of the dryer at least twice as long! How about that!?!
Learn something new everyday! I certainly didn't know dryer sheets would do that. So , I thought I'd share! Note: I went to my dryer & tested my screen by running water on it. The water ran through a little bit but mostly collected all the water in the mesh screen. I washed it with warm soapy water & a nylon brush & I had it done in 30 seconds. Then when I rinsed it the water ran right through the screen! There wasn't any puddling at all!
That repairman knew what he was talking about!
Happy Clothes Washing
Richard
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