Category: Short Sales and Foreclosures

BANKS ACCEPTING MORE SHORT SALES IN MARICOPA COUNTY, ARIZONA

BANKS ACCEPTING MORE DISTRESSED SALES IN MARICOPA COUNTY

March 2nd, 2012

When the housing bubble first burst in Arizona, most banks were taking back delinquent properties versus working with home owner’s to sell their property at a loss. 

Recent statistics show that banks are more and more likely to accept a short sale or sell the home at an investor auction versus taking back a delinquent home.  This is encouraging for homeowners exploring a short sale, as data suggests that there is a higher likelihood of a short sale going through.   

There are many benefits to a short sale – the most important one being that most short sales include a clause where the homeowner is no longer responsible to repay the bank.  When a home is foreclosed upon and taken back, the bank can come after you for a numbers years if they should choose to do so.

STATISTICS FOR DISTRESSED SALES AND TAKE BACKS IN MARICOPA COUNTY:

In 2011, There were 62,156 distressed title transfers

34,634 were short sales or investor sales   /   27,522 were properties taken back.

In 2010, There were 67,208 distressed title transfers

28,490 were short sales or investor sales   /   38,718 were properties taken back by the bank.

In 2009, There were 60,682 distressed title transfers

20,065 were short sales or investor sales   /   40,797 were properties taken back by the bank.

As more and more banks are willing to accept short sales, delinquent homeowners should attempt to work on a short sale versus giving the property back.  In most cases, a homeowner will get a check for closing a short sale and they do not have to worry about the bank coming after them in the future for losses incurred.

*data obtained from Fletcher Wilcox at Grand Canyon Title Agency.

BANKS ACCEPTING MORE SHORT SALES IN MARICOPA COUNTY, ARIZONA

When will I qualify for a mortgage after a short sale or foreclosure?

Many clients who have gone through a short sale or foreclosure after 2007 are now asking me the question, “When will I qualify for a mortgage?” Housing is once again affordable and people want to take advantage of rock bottom deals. Prices in Phoenix, Arizona are hovering around the bottom. You can see from this chart that there haven’t been any drastic plunges or spikes over the past 9-12 months as shown in previous years. Now is the time to buy a house and become a homeowner once again. Now is the time to relocate, invest in a winter home, buy a retirement home, and invest in rental properties and fix-n-flips.


Another reason people are asking if they qualify to purchase a home again is because the FHA loan limits are said to be dropping significantly October 1, 2011. That means the buying power in the 3.5% down payment price range is much lower. In Maricopa County Arizona, the loan limit is currently $346,250. As of October 1st, it will be $271,050. That’s a decrease of $75,200 in buying power!

Others questioning, “When will I qualify for a mortgage?” are homeowners who elected to do a strategic default because the equity is so upside down. These homeowners are hundreds of thousands upside down in a property and are well aware that the value will never rebound in their lifetime to what they originally paid, so they cut their losses short. They are now looking to invest in properties. Interest rates are low, prices are at bottom and there are several opportunities to fix up a foreclosed house and flip it – or buy and hold it to take advantage of the booming rental market.

Finally, the answer to the question: When will I qualify for a mortgage after a short sale or foreclosure?

The Waiting Period to Qualify for a Home Mortgage after a Short Sale, Foreclosure or Bankruptcy

Call Kelli Grant to set up your custom web portal of MLS listings that match the property criteria, location and price range you’re interested in researching. You’ll receive notification emails up to once a day when there are price changes or new listings to see. 

Kelli Grant specializes in short sales, pre-foreclosure options such as the HAFA program, and strategic default options in the cities of Phoenix, Scottsdale, Cave Creek, Anthem, Glendale, and Peoria. Kelli Grant is the neighborhood specialist for Sonoran Foothills and Tramonto. If you need to speak to a reputable, reliable real estate attorney or CPA about the legal and tax consequences of a short sale or strategic default, contact Kelli Grant.

Kelli Grant, Personal Realtor® “Moving People Through Inspiration and Good Deeds”

Call or Text 602-799-5420

 

 

When will I qualify for a mortgage after a short sale or foreclosure?

A Short Sale in Scottsdale, Arizona Solves Problems For Buyers And Sellers Alike

A Short Sale in Scottsdale, Arizona Solves Problems For Buyers And Sellers Alike

When it comes to short sales, likely you have heard things both good and bad about the process. In general, it is a good way to help a homeowner get out from under mortgage payments that you can no longer afford, without having a major negative impact on their credit score. If you live in the Scottsdale area or are looking to buy a home in the area, learn more about this process and the benefits offered to both buyer and seller.

In today’s economic climate, many homeowners are finding that they owe more on their home than what it is worth. Due to loss of income, unemployment, bankruptcy, divorce or other extenuating circumstances they can no longer pay their mortgage. If this describes you current financial situation, you are likely facing foreclosure, which is something you would rather avoid if at all possible. As Certified Distress Property Experts in Scottsdale, Arizona, we can help you negotiate the short sale process with your lender, so that you can sell your home for less than you owe to a willing buyer.

Scottsdale, Arizona is a very desirable city where home prices may be considered out of reach, but Short Sales and Bank owned properties have lowered prices and this could be a great time to get into the Scottsdale housing market. The short sale process allows buyers to purchase their dream home for considerably less money, which is ideal for today’s home buyer. We specialize in Scottsdale real estate and know the values of the homes in this area, and can easily find a property that fits within the price range of the buyer’s requirements.

If you are a homeowner trying to get out from under your mortgage, you may wonder why a lender would take an amount less than what you owe on your home. Lenders would generally rather have some money on the property, as they are not in the business of owning or managing property. While foreclosure may drop your credit score by as much as 250 points, the short sale process generally drops it by only 100 points. You can also purchase another home of your own quicker, while foreclosure usually results in a wait of 5 to 7 years or longer.

Buyers looking for a home in the Scottsdale area will find that short sales allow them to purchase a beautiful home for a price they can afford. For example, a home may be worth $500,000.00 or more, but the lender may be willing to settle for $375,000. 00. This saves you a substantial amount of money, and you get a lot more home for your money.
Either way, the process is an involved one that most people do not want to enter without the advantage of a Scottsdale real estate professional on their team. As Certified Distressed Property Experts, we can negotiate and handle the bulk of the work, making the process both easier and less time consuming. If you are looking to buy or sell in Scottsdale, Arizona contact a reputable Certified Distressed Property Expert like us to make the entire process quick and seamless.

Stephen Proski

RE/MAX Achievers

Scottsdale, Arizona

602-620-2164

office@az-homes4u.com

A Short Sale in Scottsdale, Arizona Solves Problems For Buyers And Sellers Alike

ARIZONA HOUSING STATISTICS – BREAKING RECORDS!!

ARIZONA HOUSING  STATISTICS  :  BREAKING RECORDS!!

June was a record month for Arizona housing.  10,868 home sales occurred in June of 2011, surpassing the previous record of 10,252 units sold in June of 2005.

June was also a record month for home leases of Single Family Residences.  2,280 new leases were executed last month, beating the previous record of 2,002 leases in July of 2008.

Typically home sales and leases go in the opposite direction, but with all the short sales and foreclosures occurring – there are a lot of people changing residences. 

Arizona short sales also set a record, contributing to 2,734 sold units – up 33% from May.

We are still very much in a market fueled by investors.  41% of Single Family Residences sales were purchased in cash.  29% with conforming loans, 24% with FHA loans, 4% with VA loans, and 2% with others.

Lastly, the median home price in Arizona increased in June to 111,000 from 109,000 in May. 

(Arizona Housing statistics – breaking records – from Reggie Green @ Crossline Capital)

Licensed in Arizona, California and Colorado.

MORTGAGE RATES BACK TO LOWEST LEVELS OF THE YEAR – 6/27/11

MORTGAGE RATES BACK TO LOWEST LEVELS OF THE YEAR:  The bond market closed the week 56 bps higher – pushing rates back to the lowest levels of the year.  This ended 2.5 weeks of the bond market going down, pressuring rates higher.

30 year fixed rates are now back to 4.375% with a portion of a point.  20 year fixed loans are back to 4.25%.  5/1 ARMS are down to 2.875%.

We are now in the last week of the FED purchasing mortgage backed securities program – QEII.  The market will now determine interest rates without the FED manipulating demand.

6/20/11 – Mortgage Rates Rise for 2nd straight week / The Foreclosure Statistics

MORTGAGE RATES RISE FOR 2nd STRAIGHT WEEK:  The Bond market finished slightly down on the week – ending 6 bps lower.  This pushed rates slightly higher on the week.  You can still get a 4.375% on a 30 year fixed rate, but it will cost over a point.  4.49% is the par rate paying less than one point.

Overall, there is some pressure on mortgage rates right now.  The Feds Quantitative Easing measures are about to end, which could push rates a bit higher.  Overall, I don’t see rates going much higher or much lower from where they are right now for the foreseeable future. 

 

THE FORECLOSURE NUMBERS:   According to the US Foreclosure Market Report, foreclosure activity has decreased for the 8th straight month.

There are 3 foreclosure activities they consider in their report.  Notice of Default is when the mortgage company notifies the customer that they are in violation of their contract and they plan on foreclosing unless payments are brought back up to speed.  This can be given out after 3 months of late payments.  Foreclosures scheduled is when a home is scheduled to be taken back by the bank.  REO is when the bank takes back the home and it becomes part of the banks inventory.

From April to May:

Notice of Default rates went down by 7%

Foreclosures Scheduled went up by 3%

REOs went down by 4% 

Although the foreclosure activity has decreased, the results can be misleading.  Many lenders are delaying foreclosure proceedings for various reasons associated with their own process and procedures as well as market considerations in the area where the homes are being foreclosed in.  If they keep pumping more REOs into the market when their current inventory is high, it will push down the values of their existing inventory.

Also, even though the inventory of homes in the foreclosure process has decreased steadily over the past 6 months, the inventory of REOs is increasing.  This is because the amount of REOs being added to the market is outpacing the amount of REOs sold.  This points to a still struggling housing market where the demand is not on par with the supply. 

The states with the highest foreclosure rates in order are Nevada, Arizona, California, Michigan and Georgia. 

6/6/2011 – MORTGAGE PRICING CONTINUES TO DROP

MORTGAGE PRICING CONTINUES TO DROP:  Mortgage rates / pricing went down for the 6th time in 7 weeks.  The bond market closed 50 points up last week, lowering pricing on most loan options by approximately .4 pts in cost to get the loan.

Though pricing is down, most of the par rates are still the same, just a bit cheaper to get in closing costs. 

Be cautious in waiting too long right now.  The Fed is discontinuing their mortgage backed securities program this month.  By the FED not pumping money into keeping interest rates low, we could see a rise in rates at the end of June.  I would lock in pricing if you are satisfied with a rate.

5/31 – MORTGAGE RATES DROP TO 4.375% – DOUBLE DIP IN HOME VALUES

MORTGAGE RATES DROP, BUT BE CAUTIOUS:   For the 5th time in 6 weeks, mortgage rates and pricing have dropped.  The bond market ended the week 47 bps higher – pushing rates lower.  The 30 year fixed par rate has dropped to 4.375%.  5/1 ARMs have dropped to 2.875%!!

But beware, there are signs that rates could have trouble this week.  There is optimism that a deal working to help Greece with their debt issues will go through.  This could mean trouble with the bond market, pushing rates higher. 

THE DREADED DOUBLE DIP IN HOME VALUES:  According the March S & P / Case Shiller Home Price Index, much of the nation is in the midst of a double dip in home values.  After being down for a number of years, price levels rose recently driven by the Federal Tax credit for new home buyers. 

Since the tax credit ended, prices have steadily dropped in most areas.  Across the country, home values are down 4.2% over the 1st quarter of 2011, and 5.1% down since March of 2010.  The average price of a home is now down to 2009 levels and if adjusted for inflation, down to 1999 levels. 

I personally think this is a great market to buy a new home.  Prices are low, rates are great.  If you are looking to purchase a long term home, you can get on a 30 year fixed rate and ride out the fluctuations in the market.  Is this the best market to have owned a home for a number of years? – I don’t think it could be much worse.  Good news is many people can still refinance at up to 105% of what their home is worth and still get a great rate. 

5/23 – RATES HOLD STEADY ; NEW WAYS TO PROVE INCOME

MORTGAGE RATES HOLD STEADY:  For the first week in 4 weeks, rates have not improved.  The bond market finished with no change on the week.  30 year fixed par rates are still available at 7 month lows.  30 year fixed par rates are at 4.5% paying around a half a point.  You can go down to 4.375% by paying a little over a point, and 4.625% is 0 points. 

FHA rates are great right now.  For most customers I can do a 0 cost loan for less than 4.5%!!

LOTS OF ASSETS ; BUT NO PROOF OF INCOME:  I talk to frustrated borrowers almost every week who have a lot of assets but prove little to no income.  There is now a way to help these borrowers.

An example of this borrower would be one who has 1 million in the bank that they live off of, but do not currently hold a job.  We can now help these borrowers by having them set up a monthly withdrawal every month for the next 3 years from their asset accounts.

Here is how it works:  Customer calls the representative from their account.  They set up a certain amount of money to be deposited to them every month (I would tell you the amount needed to qualify for the loan).  I must get a letter from the account rep saying they have set up a monthly withdrawal for 3 years with such and such amount.  I would then need a most recent statement from this account showing there is enough in the account for it to last for 3 years.

It is that easy, and we can now use this monthly installment as qualifying income – call me if you would like to see if I can make this work for your scenario.

REPUBLICANS INTRODUCING NEW FHA LEGISLATION:  Republicans are about to introduce new legislation to change FHA guidelines.  The changes would include:

95% max loan to values (currently 96.5%)

Lower FHA loan limits in most counties

The biggest problem with our economy continues to be the housing market.  We need homes to continue selling so we can eventually get past the foreclosure and short sale mess.  The 3.5% down payment program allows many home owners to purchase a new home without having to have a significant down payment.  By taking this away, we would be hampering the very industry we need to strive.

I think eventually this could be a good idea, just not right now.  To learn more about FHA loans – visit my page on WHAT YOU NEED TO KNOW ABOUT FHA LOANS: http://mortgagenewsandrates.com/what-you-need-to-know-fha-loans/

5/16 – 30 YEAR FIXED DOWN TO 4.5% , IS NOW A GOOD TIME TO BUY A NEW HOME?

MORTGAGE RATES LOWER FOR THE FOURTH STRAIGHT WEEK:  Rates are smoking right now.  30 Year fixed rates have dropped to 4.5% – typically costing approximately 1 point to get.  20 year fixed rates dropped to 4.25%.  15 year fixed rates dropped to 3.75%.  You can get a low closing cost 10 year fixed loan at 3.375% right now!!

Rates have improved for 4 straight weeks.  Be cautious in floating a rate.  Rates won’t go one way or the other for too long, and typically when they reverse we get some pretty substantial pull back.  Rates have now improved for 4 straight weeks – they will get some pull back soon. 

IS NOW THE TIME TO BUY A NEW HOME?:  In most markets, we are seeing that it is cheaper to own than to rent.  Rates are low and home values are low.  Freddie Mac reported this week that home prices nationally are down 2.8% in 2011 and they expect an increase in new home sales of 5% for 2011.

There are two reasons that most people are not buying a new home that have the ability and want to buy a new home.

1.)  Buyers don’t know that they can qualify for a new loan.  These potential customers probably have had some credit issues in the past and are unsure about their qualification prospects.  Keep in mind that qualifying for a new loan is relatively easy right now.  You can do a new purchase loan with a 580 Fico score and only put down 3.5% of the purchase value.  Just because you have had a foreclosure or short sale does not mean you can not qualify for a new loan – you only have to wait 2 to 3 years before you can buy again. 

Call me or call a loan officer you trust.  Check it out – you may be able to qualify and having one person pull your credit does not dramatically lower your scores like some people think. 

2.)  Buyers are afraid to buy because they don’t think the market has hit the bottom.  This is a legitimate concern.  Some markets are probably not at the bottom, but I think most can agree that we are past the rapidly depreciating phase.  One thing to keep in mind is that rates are still very low.  If they go up (which they eventually will – and already have from last year), you could see a higher payment on a cheaper home.

For example – You buy a 250,000 home, put 20% down and do a new loan at a 4.5% 30 year fixed rate.   Your PI payment would be $1,013.37.

Now let’s say you decided to wait and that same house a year later is now only 230,000.  You get a better deal, but rates have risen to 5.5%.  You put 20% down, do a new loan for 184,000 at a 5.5% 30 year fixed rate.  Your new PI payment is $1,044.73. 

So even though you have bought a cheaper home, you will pay 11,422 more over 30 years because rates are higher. 

This is really a big deal because some people think rates this low will last forever and they won’t.  And when they do go up, they can go up quickly.  In November 2010, rates went up by .75% is less than 4 weeks. 

Values are low, rates are great.  Right now is a great time to buy a new home!!