There is still an oversupply of active properties for sale (we believe the oversupply is approximately 40%) but that needs to be carefully analyzed in specific pricing segments as opposed to a “bulk number”.  The majority of oversupply exists in properties that retail for a price that exceeds the FHA upper end lending limit. We are seeing predictable and relatively short resale marketing timeframes for properties that retail for $250K and under.

Price deflation has largely occurred at this point and we are seeing modest price inflation in the $250K (retail) and under category and properties that retail for any price that is underneath the FHA upper end lending limit.

Market speed and velocity for properties that retail for a price that exceeds the FHA upper end lending limit is lethargic and will continue to be that way until there is a more competitive take out market for loan amounts over the FHA lending limit as there are only so many 800 FICO score buyers with 30% (or more) in cash for a down payment.

Prices being paid at Trustee sales recently are downright stupid if your business model is based upon an near term exit strategy, but the Bidders/Buyers attending the sale typically have little to no risk in the purchase, or the result reinforcing the largely accepted thought that it’s easy to spend someone else’s money. We believe the successful investor will “shoot with an arrow, not a shotgun” in this very competitive environment.

We are seeing some good values in the purchase of bank recovered assets from local or regional lenders, and short sale purchases.

There are still some “home runs” in the market – we see them daily but they are few in number and we see a lot more “singles and doubles”. Care and caution are the order of the day as we see it.

ACTIVE FUNDING GROUP PROVIDES

ASSET BASED LOANS FOR THE PROFESSIONAL REAL ESTATE INVESTOR

WE OFFER SPEED, CONVENIENCE, DEPTH OF CAPITAL (WE DON’T RUN OUT OF MONEY)
AND AN EXTREMELY
EASY TO USE ONLINE APPLICATION AND APPROVAL PROCESS.

APPLICATION TO FUNDING IN HOURS WHEN NECESSARY – LOG ON TODAY

This form was made with the client in mind - www.aaronline.com/documents/ssseller_advisory.pdf

It was put together by the Arizona Association of Realtors.  Check it out.

Let me know if I can be helpful to you if you decide to pursue a short sale.  Use the contact form to the right:) - Becky

Also, as a side note - here is a rule of thumb regarding buying a home again once you’ve experienced a short sale, foreclosure or bankrupcy -

Waiting Periods for BK/FC/SSale

• Bankruptcy = 4 years
• Foreclosure = 5 years
• Short Sale = 2 years

• Bankruptcy = 2 years
• Foreclosure = 2 years
• Short Sale = industry standard is 2 years

• Bankruptcy = 2 years
• Foreclosure = 3 years
• Short Sale = industry standard is 3 years unless no mortgage lates in the past 12 months and buying in a different geographic location (out of state job transfer for example).

Information deemed reliable but not guaranteed.

Credit given to:

Where’s the Refund?
First-time home buyers who bought as long ago as last winter are still waiting for their $8,000 tax refund.

As of mid-September, more than 1.4 million taxpayers had requested the credit by amending their federal tax returns. The IRS announced in October that it expects 5.1 million claims by year-end. That count doesn’t reflect the extension and expansion of the credit in November.

IRS spokeswoman Carrie Resch says the agency is experiencing a higher-than normal number of amended returns and because amended returns are reviewed by hand, the process is delayed.

U.S. Sen. Amy Klobuchar (D-Minn.) has been fielding constituent calls for weeks from irate home buyers. She sent a letter to the IRS that said in part: “The full and immediate economic impact of the tax credit is lost when it takes up to four months for people to get the money due to them … such lengthy delays are unacceptable and erode the public’s trust in the competence of the government.”

Source: Minneapolis-St. Paul Star Tribune, Kara McGuire (12/10/2009)

In addition to extending the tax credit through June 30th, 2010, the extension measure also opens up opportunities for others who are not buying a home for the first time.

So Who Gets What?

The program that has existed for first-time homebuyers remains intact with one exception - that more people are now eligible based on an increase in the amount of income someone may now earn.

Additionally the program now gives those who already own a residence some additional reasons to move to a new home.  This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.

Deadlines:

In order to qualify for the credit, all contracts need to be in effect no later than April 30th, 2010 and close no later than June 30th, 2010.

Higher Income Caps in Effect:

The amount of income someone can earn and quality for the full amount of the credit has been increased.

Single tax filers who earn up to $125,000 are eligible for the total credit amount.  Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible.

Joint filers who earn up to $225,000 are eligible for the total credit amount.  Those who earn more than this cap can receive a partial credit.  However, joint filers who earn $245,000 and above are ineligible.

Maximum Purchase Price:

Qualifying buyers pay purchase a property with a maximum sales price of $800,000

First time Homebuyer Tax Credit - Frequently Asked Questions - click here.

This huge shopping day is about a week away!  The day after Thanksgiving is known as BLACK FRIDAY - mainly because this shopping day alone keeps retailers in the black and profiting!

You can see retailer’s ad’s NOW by visiting http://www.black-friday.net/ or http://blackfriday.gottadeal.com/

Wal-Mart just released their ad today…so have Best Buy and JC Penney - it’s all there.

Also don’t forget about CYBER MONDAY (the Monday after Thanksgiving holiday) - that is the day all the ONLINE deals are to be had!  I like to shop amazon.com and newegg.com on that day.

Here is the scoop about a program I get asked about a lot.  Many mortgage lenders and real estate agents will tell you this program isn’t a viable option.  Two main reasons seem to prevent it from happening - 1) banks won’t accept offers 1% below appraised value 2) the 8 hour class the buyer must take is offered so rarely (like once a quarter) or is already full.  Read on for more details about the $15,000 downpayment “loan” program we lovingly know as…

Neighborhood Stabilization Program

With the passing of the Housing of Economic Recovery Act (HERA) $3.95 billion of grant funds are to be distributed to cities across the country.  HERA

directed HUD to target funding areas with the greatest needs based on the extent of foreclosures, sub prime mortgages and mortgage delinquencies and defaults.

The City of Phoenix was awarded approximately $39.5 million in NSP funds to help families purchase foreclosed homes at a discount which in turn helps stabilize neighborhoods and increase property value for everyone.

With this program, $15,000 is awarded for downpayment and closing cost assistance for buyers of foreclosures homes anywhere in the City of Phoenix.  The full amount of the loan is paid back when the homebuyer sells the home.

The program targets foreclosed single family homes and condo’s (condo conversions not eligible)

Family Size and 120% of the Area Medium Income will be a factor in your eligibility for the program.  Use this calculator.

A family of 1 cannot exceed $55,350, a family of 2 = $63,250 income, a family of 3 = $71,150, a family of 4 = $79,100, a family of 5 = $85,400 ETC.

To be eligible for NSP Home ownership Assistance Funds, properties must meet the following requirements:

• Located in City of Phoenix
• Foreclosed and have changed title
• Appraised within 60 days of the purchase contract
• Purchase contract must contain four contingencies:
  • Sales price at least 1 percent below appraised value
  • Property is clear of the city’s most common blight/code violations neighborhood code violations (See http://www.phoenix.gov/CLEANPHX/topseng.pdf)
  • Property must pass a Housing Quality Standards (HQS) or FHA inspection, which includes the top 8 city of Phoenix property standards.
  • Purchase contract must contain a signed “Lead Disclosure Form” from seller for properties built prior to 1978.

Program Specifics:

• $15,000 LOAN for down payment
• Currently City of Phoenix only
• down payment and cosing costs assistance only
• 8 hour of homebuyer education required
• Must have a 3 year home warranty contract
• $1000 must come from borrower’s own funds (not a gift)
• Full amount of loan paid back upon sale
• Borrower allowed to earn $120% of Area Medium Income

For more information of properties that may qualify - don’t hesitate to get in touch with me via email: Becky (at) BeckyWyattOnline (dot) com or call me 480-383-9209 - Becky Wyatt, REALTOR w/HomeSmart

Information provided by Ed and Barbara Heiser - Morgage Banker/Brokers with AMERIFIRST FINANCIAL.  Contact them at 480-682-6628

What is a HUD home?

If a loan that is insured by the Federal Housing Administration (FHA) goes into default, the lender must take steps to collect on the loan.  This may result in the lender taking possession of the Real Estate Collateral.  If this occurs, the lender may submit a claim against the FHA insurance fund and convey ownership of the property to HUD.  HUD in turn sells the property, as quickly as possible, at market value.

Who Can Buy a HUD Repo?

Any buyer that can secure a loan to purchase real estate, or can pay cash, is eligible to purchase a HUD home.  Purchases MUST use a broker or agent who is registered with HUD to submit a bid on a property.  Purchases must also have a pre-qualification letter from a lender or proof of cash funds in the amount of, or greater than, the property they are purchasing.

IMPORTANT PROGRAM HIGHLIGHTS:

• HUD has an “as-is” policy
• There are 3 different financing categories for HUD homes:
  • IN-insurable-203(b) - Properties listed as IN appear to qualify for FHA 203(b) financing.  There should not be any MPR (minimum property requirement) repairs necessary.
  • IE-insurable with Escrow-203(b) Repair Escrow - Properties listed IE are eligible for FHA financing with repairs to be completed by the purchasers after the close of escrow.  These repairs must be MPR repairs totally less than $5,000.  MPR categories include: roof, structural, and mechanical systems, such as plumbing, electric and heating.  The cost of repairs is NOT paid by HUD, however the buyer may finance the repair escrow amount in their mortgage. Repair escrow only applied to FHA financing - not cash or conventional financing.
  • UN-insurable - conventional, cash or 203(k) financing - Properties listed as UI generally are in need of extensive repairs and are usually purchased with cash or conventional financing.  The only type of FHA financing they may qualify for is FHA 203(k) loan. 203k FHA is a rehabilitation loan for owner occupants purchasing properties that have offer $5,000 worth of MPR repairs. Not all US properties will qualify for FHA 203k financing.
• Only one owner occupant bid at a time
• Investor bids are not accepted until at least 10 days after the property was listed. This gives Owner Occupied Purchases first opportunity to buy the home.
• HUD waives down payment requirement on HUD REO’s.  Buyer only has to come to table with $100.

HUD homes can be found on the local MLS (Multiple Listing Service) search.  Making an offer involves an electronic bidding process. Contact Becky Wyatt, Realtor with HomeSmart (480-383-9209) for more information about available HUD homes. Or, click to search yourself with the MLS button to the right.

Information provided by Ed and Barbara Heiser - Phoenix area Mortgage Banker/Broker with AmeriFirst Financial.  Office: 480-682-6628

Information current as of date posted. Deemed reliable but not guaranteed.

There is a real possibility of an extension of this program through a proposed Bill, but it is not yet a certainty. The extension Bill still must be reconciled between the House and Senate, and then voted on for final approval. Under the current extension proposal, sales with signed purchase agreements by April 30th that close before June 30^th, 2010 would qualify for the credit.

Another positive element would be the possible addition of $6,500 tax credit for other primary home purchasers, meaning the tax credit would no longer be limited only to first-time homebuyers. There is also a possibility that qualifying income limits could increase from $75,000 to $125,000 for singles, and from $150,000 to $250,000 for joint tax filers.

To recap the rumored details:

1. The tax credit would be $8,000 for first-time home buyers and $6,500 for move-up buyers from December 1, 2009 to April 30, 2010 and the transaction would have to close by June 30, 2010.
2. Move-up buyers will be eligible, so long as the home they are leaving has been used as their principal residence for 5 years or more.
3. The income limits for both first-time home buyers and move-up buyers would be $125,000 for single return and $225,000 joint return.
4. Cost of the home may not exceed $800,000 to be eligible.
5. For purchases made in 2010, taxpayers would be able to claim the credit on their 2009 income tax return.
6. Home buyers would not have to repay the credit, provided the home remains their principal residence for 36 months after the purchase date.
7. The amendment includes a military waiver provision, meaning the recapture provision would not apply in the case of a member of the Armed Forces, military intelligence or Foreign Service who is on qualified official extended duty. In addition, members of the military who have been deployed overseas for 90 days or more in 2008 or 2009 would have until April 30, 2011, to claim the home buyer tax credit.
8. The amendment also includes anti-fraud language that provides math authority to the IRS to do greater oversight during the processing of the return rather than waiting for an audit situation. The amendment requires the taxpayer claiming the credit to be 18 or older as well as requiring a HUD-1 settlement statement to be attached when claiming the credit.

I’ll be sure to post when Congress makes a final decision.

If you have questions about the current first time homebuyer tax credit in place you can read about that here and here.

-Becky

Morrison Ranch is a popular community located in Gilbert, Arizona near Higley and Elliot Rd. Morrison Ranch is a 2,000 acre master planned community with shopping, parks and home’s ranging from $150,000-1 million. Most of the homes are $300,000-$500,000. The community is known for it’s lush landscaping including green lawns and mature trees. Cactus and desert landscaping are not permitted by the Homeowners Association. Many people describe this neighborhood as having a mid-west feel. Higley Groves is a subdivision within the Morrison Ranch area.

Gilbert Unified School District:
Elementary Schools: Greenfield & Highland Park
Jr. High School: Greenfield
High School: Highland
www.greatschools.com