Foreclosures Are On The Decline In Arizona

May 18, 2012 By Nathan Mitchell

According to a recent article in CNN Money, foreclosures are down 70% in Arizona. This is not a surprise, if you’ve been paying (even slight) attention to our market here in Phoenix. As a buyer, your choice of bank owned properties continues to dwindle here in Arizona, while there are still more short sales and growing numbers of traditional sales.

Foreclosure filings are continuing to drop across the United States. Year over year, foreclosures (actual bank repossessions) were down 26% last month and are currently at 50% of the peak in 2010. Foreclosure filings have dropped for the third straight month in a row. Foreclosure activity for April was down 5% as compared to March. Foreclosure activity includes notices of default, repossessions and scheduled auctions.

Phoenix and Mesa Arizona #1 In List Price Increases

May 17, 2012 By Nathan Mitchell

As stated in a recent Realtor Magazine article, Phoenix and Mesa, Arizona have been listed as the #1 leader in the housing recovery this month of May. Specifically, the median list price of homes for sale in Phoenix and Mesa, Arizona have increase by almost 27% from the first quarter of last year to the first quarter of this year. The increase in listing prices here in Arizona are due in large part to the current shortage of homes available for sale. With increased buying activity and less homes available, prices are quickly increasing. Now is a great time for homeowners to sell if they have been waiting for price increases.

What’s happening with real estate in Arizona right NOW?

April 3, 2012 By Hunter Clark

I just received an email from one of my “Investor savvy” clients in California regarding the dramatic increase in listing prices he’s noticed recently and his concerns as to whether these prices will hold up…here’s a brief synopsis of my response to his observation:

Prices are going up, up and up! Especially in price ranges under $200,000. Newly listed properties are getting so many offers within the first few days of them being activated on the MLS (Multiple Listing Service) that Buyer’s are waiving the Appraisal Contingency and bidding quite a bit higher than list price. This is the same non-sense that got us in to the situation we’re still trying to recover from. It’s scary out here! We got some great deals in the past couple years, and look at the inventory now, with only a shade over 14,000 “Active” homes in Maricopa and Pinal counties. Compare that to the over 34,000 Active homes that were available this same month in 2010. Very, very low inventory and there’s the strong economic influence of supply and demand at play. Currently, Bank Owned and Short Sales only comprise 18% of the Active market, with 82% being “Normal” sales, neither Bank Owned or Short Sales. It’s a great time to be a Seller and not so good for a Buyer, especially if your attempting FHA as a first time home buyer and getting beat out by the “big guns”. I don’t see the inventory getting back to a healthy range of 35,000 “Active” homes on the market for a few years. It’s going to be a struggle for home Buyers with Seller’s sitting in the driver’s seat.

We’re always analyzing the market and trying to get a pulse on what’s happening, what it means and what we can do to position our clients with any advantage we can. Interesting times again, I think we’ll be in for one heck of a ride, and a long ride at that!

What Can I Expect If I Put An Offer In On A Short Sale?

March 8, 2012 By Nathan Mitchell

Basically, here in Arizona, if you put an offer in on a short sale, you can expect a minimum of a 3 month wait for a response from the seller’s lender. The response might be yes, no or some sort of counter offer. During the wait period there’s not usually a lot of information that get’s passed from the seller’s lender to the listing agent (or to the buyer’s agent). Much is done internally at the bank and a lot of information is not disclosed.

Here are some things that we can typically count on: When an offer is submitted to the seller’s lender, it’s submitted along with a “short sale package.” The package consists mostly of the seller’s financials, including taxes, bank statements, income expense sheet, etc… The main point of the short sale package is to reverse qualify for their mortgage. In other words, they’re trying to prove that they can no longer afford their mortgage. After the short sale package is submitted, there is an appraisal done on the home (many times referred to as a BPO). Once they’ve received the appraisal and short sale package, the lender will then start processing the paperwork to make sure the entire package is complete and that the offer is in line with the actual short sale market value. Typically after that, it’s sent through one or more quality control negotiators to make sure that everything truly is in order. Then, typically after that the entire file will be assigned to a negotiator who will then review the file and obtain/update any missing or outdated documentation and fit the file within the guidelines of the investor that holds the Note on the property. The investor is the actual lender that makes the decision on whether or not a short sale will be permitted. Once everything is in order, the entire package is submitted to the investor for final approval. If the investor approves the short sale, the bank will issue an approval letter and buyer and seller can move towards close.

That’s the process here in Arizona, in a nutshell! Many things can happen between buyer’s offer and closing, and every short sale is different. The above is just the basic framework.

I Would Like To Negotiate My Closing Costs

March 4, 2012 By Nathan Mitchell

Can I Negotiate Closing Costs?

Absolutely. Everything is negotiable!

With the Arizona Residential Resale Real Estate Purchase Contract, it’s not typical that buyers and sellers will itemize what closing costs they would like their counterpart to pay. It’s usually just asked for a lump sum amount or a percentage of the purchase price. There’s even a section in the purchase contract addressing what closing costs will be paid by the seller on behalf of the buyer.

Also here in Arizona in the current market conditions, it’s more common for buyers to ask for closing costs to be paid for them. There aren’t many sellers asking for their closing costs to be paid right now, although things can change and sometimes very quickly.

What can you expect to pay in closing costs?? There are an infinite number of loan programs out there, with different requirements, fees and costs, so talk to your lender (contact us if you need a referral to a great lender!) about what your estimated costs would be.

What Can I Do Right Now To Increase The Value Of My Home??

March 2, 2012 By Nathan Mitchell

What Can I Do Right Now To Increase The Value Of My Home?

When you’re selling a home, a little curb appeal can go a long way! You could possibly start with some less expensive things such as making sure your yard (front and back) is clean and tidy. Consider putting in some new plants/flowers if it’s the right time of year. Your first impression can really make a difference.

From there you can follow suit inside the home and make sure that it’s also clean and tidy. If some cosmetic repairs are needed, take care of them. Air out the home frequently and make sure there’s adequate lighting available.

There are plenty of other things you could do, such as remodeling the kitchen and bathrooms. Try to make a great first impression with neatness and cleanliness and you might be surprised what that could bring you, without heavy remodeling expenses.

Good luck!

Time Is Running Out To Sell Your Home!

February 20, 2012 By Nathan Mitchell

You’ve read that correctly. Time is running out to sell your home as a short sale – If you want to take advantage of the Mortgage Forgiveness Debt Relief Act and Debt Cancellation Act.

As many Americans already know, Congress enacted a law to limit tax burden on homeowners who short sell their homes between January 1, 2007 and December 31, 2012. Homeowners who sell their home as a short sale and their deficiency is forgiven, may be eligible to not have any tax burden if they meet certain criteria. Click here for the IRS explanation of the Mortgage Forgiveness Debt Relief Act and Debt Cancellation Act.

Here is the critical point to keep in mind – It takes time to market and sell a home, not to mention negotiate the short sale with the lender that holds the note. December 31st, 2012 is the deadline to close a home. That means that a seller would want to get their home on the market no later than June of 2012 if they wanted to feel confident that they would get the home closed by December 31st, 2012. Time is really running out.

In most instances, without the Mortgage Forgiveness Debt Relief Act and Debt Cancellation Act, if a homeowner sold their home as a short sale and had a $100,000 deficiency, that deficiency would count towards their income on their taxes for that year. For example, if you owed $300,000 on your home and sold it for $200,000, you would have a $100,000 deficiency. $100,000 would be counted as income on your taxes.

If you are considering putting your home up for sale here in Arizona, or anywhere else in the country, now is the time to act!

We recommend consulting a real estate attorney and tax adviser regarding ramifications of completing a short sale on your home.

The Anatomy of the Arizona Purchase Contract – The Cover Page

August 25, 2011 By Nathan Mitchell

The cover page is the first page of the Arizona Purchase Contract and it is a page that is packed with great information for the buyer.

Please reference: Cover Page – Arizona Contract

Here are the highlights of the cover page:

1. When you make an offer and it’s been executed (signed and accepted by the Seller) you’re entering into a legally binding agreement with the seller, so be sure to read the entire contract and ask questions about anything you don’t understand.

2. The Seller’s Property Disclosure Statement is a document that gives information as far as what the seller knows about the property. It is typically delivered to the buyer shortly after contract execution. Look for this document and further explanation in a future post.

3. A home inspection on the property you’re buying is always strongly recommended! A home inspector will check your home thoroughly and recommend additional inspections by qualified technicians in specialized fields, such as mold, roof, pest, etc… if necessary.

4. The ability to purchase home (hazard) insurance is considered part of your inspection of the home and should be done during the inspection period, which is typically 10 days here in Arizona.

5. You should finalize your loan application with your lender within 5 days of receipt of the executed contract from the Seller. Get all the necessary financial information to your lender, in order to keep the loan approval process flowing!

6. Thoroughly review the title commitment and any other documentation provided to you from your title company.

7. Read all HOA documentation and CCR’s within 5 days of receipt from the HOA.

8. You should always perform a final walkthrough as close to the closing day as possible. You do this in order to make sure the home is in the same condition it was when you made the offer with the exception of repairs, if applicable.

It all seems pretty self explanatory, which is perfect. That’s what the cover page is for. To give you, the Buyer, a road map during your transaction to purchase your new home.

Beware Of Foreclosure Scams!

August 24, 2011 By Nathan Mitchell

In an effort to help spread the word and protect consumers from fraudulent mortgage relief scams, I submit the following warning from AG Horne. Contact the Attorney General if you have any questions or feel you are a victim of mortgage fraud.

AG HORNE WARNS HOMEOWNERS: MORTGAGE LAWSUIT SCAM HITS ARIZONA

PHOENIX (Monday, August 22, 2011) — Attorney General Tom Horne today issued a warning to consumers to be wary of any notices or advertisements that claim to offer homeowners facing foreclosure “complete forgiveness of the loan” or other monetary relief if they join a class-action lawsuit. Such ploys are likely a pretext to collect illegal up-front fees for foreclosure assistance.

In class action litigation, consumers generally do not have to pay to join, and most reputable firms will not charge a fee for attorneys to review your case or to determine if you are eligible to join a lawsuit.

“The mortgage crisis is only made worse by predators who take advantage of consumers who are already facing the loss of their home,” Horne said. “State and federal law ban almost all types of up-front fees for foreclosure assistance. I am committed to prosecuting anyone who engages in this type of consumer fraud, and it is just as important that consumers be vigilant against these types of scams.”

The California Attorney General recently filed a lawsuit against California lawyer Philip Kramer, the Law Offices of Kramer & Kaslow, plus 19 other lawyer and non-lawyer individuals and companies, for deceptively marketing class action or “mass joinder” lawsuits. The defendants in that case are believed to have taken over $7 million in fees from homeowners in 17 states – including Arizona – after sending out hundreds of thousands of flyers advertising the program. The lawsuit alleges that the defendants advertised nationwide settlements against lenders that did not exist and that many servicers were not provided by lawyers or legal staff.

Notices may be mailed to homeowners or posted on their doors. Typically, the business claims that the fee they are charging is for a forensic audit of your loan documents to see if you are eligible to join the class action litigation. However, the Federal Trade Commission’s Mortgage Assistance Relief Services Rule (“MARS Rule”) contains a broad ban on requesting or collecting up-front fees for almost all types of mortgage assistance, including forensic audits related to foreclosure relief. Arizona’s foreclosure consultant statute also prohibits companies from collecting an up-front fee for assisting homeowners in foreclosure.

Foreclosure rescue companies may promise to refund your fee if you are not eligible to join the litigation. However, the Office’s experience with guaranteed refunds indicates that they are very difficult to obtain, or the company may disappear before the refund is paid. If you are facing foreclosure, refuse to pay up-front fees and instead contact the Arizona Foreclosure Prevention Helpline at (877) 448-1211 for free assistance provided by HUD approved housing counseling agencies.

If you feel you’ve been a victim of a class joinder scam or any other type of consumer fraud, please contact the Arizona Attorney General’s Office Consumer Information & Complaints Unit at (602) 542-5763 / (520) 628-6504 / (800) 352-8431. You can also file a consumer complaint online at: http://www.azag.gov/consumer/complaintform.html

Search Like An Agent

July 15, 2011 By Nathan Mitchell

Now you can have live access to all the available listings in the Phoenix Metro Area, including cities such as Chandler, Gilbert, Mesa, Queen Creek, San Tan Valley and Tempe. You can use the very same interface all Realtors® in the Valley use when they do the home searching for you. Don’t waste your precious time on 3rd party websites that have all the old information that you don’t need!

Search Like An Agent Here.

Can I Negotiate Closing Costs?

What Can I Do Right Now To Increase The Value Of My Home?

The Latest Listings