Assist2Sell

Borrowers are eligible for a new FHA-insured mortgage if;
1. they were current on their mortgage and other installment debts at the time of short sale on their previously owned home, AND
2. the proceeds of the short sale serve as payment in full.
 

Borrowers are not eligible for 3 years following the date of the short sale if;
1. they were simply taking advantage of declining market conditions, AND
2. are looking to purchase, at a reduced price, a similar or superior property in same area.
3. if they were in default on their mortgage at the time of short sale.
Exceptions may be made to this rule if;
a. the default was due to circumstances beyond borrower's control (death of primary wage earner, long term uninsured illness, etc.), AND
b. review of credit report satisfactory credit prior to the circumstances that caused the default.
 
As always, guidelines will be made clearer as lenders introduce this announcement to their programs.  We will continue to keep you updated.
  For official announcement from HUD click on link below.
http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/09-52ml.pdf
 
Also, in the Christmas spirit, Citigroup and Fannie Mae have decided to take a month off of serving foreclosure notices and eviction notices.  Please refer to link below for article.

http://money.cnn.com/2009/12/17/news/companies/Citigroup_mortgage_suspension/index.htm

When foreclosure homes come up for public auction in Phoenix, a minimum opening bid is set and bidding is open to anyone. At least that is the way it's supposed to work.

Arizona law requires opening bids on the foreclosure properties to be posted at 9 a.m. the day before the auctions. This is so all potential bidders, including the homeowner, have the information in time to research a property and line up money to bid.

This is where sources involved with auctions say things have gone wrong.

A few months ago, some lenders with foreclosure properties to sell began lowering opening bids on the day of the auction.

A drop bid is a tactic used to sell a property faster, especially when there are many houses to sell. While legal in some states, drop bids are illegal in Arizona. Reported by Arizona Republic.

For months the Luxury Real Estate Market in Phoenix Arizona has pushed on strong despite Maricopa County's sales velocity being down 70% from the high's of 2005. But that too is starting to slip and pricing pressure increasing due to high inventory levels...

Sales of Million Plus Dollar homes in Maricopa County in the 1st quarter of 2008 was down to 284 units - down 40% from 2007's 478 units over One Million.

There are nearly 4000 homes actively listing for sale in the Phoenix Market priced over one million. In Phoenix Suburb Ahwatukee, only 2 homes have closed escrow with a sales price over 1 Million thus far in 2008 - down significantly from 2007.

While all of this could turn into a mere blip on the radar, it is possible that the once immune luxury market will continue to cool off due to rising inventory and tightening credit markets making it more difficult for buyers to obtain creative financing solutions. 

It will be interesting to watch developments in second quarter of 2008.

Here it is...8:18 pm, I think my day is finally winding down, I'm de-stressing, one final email check (always a dangerous thing to do at night) and I get a message from a agent-friend of mine at ReMax. He sent me a link to a YouTube Video. And instead of being funny...it kinda opened the fear-flood-gates a bit (not exactly the type of email you want to get a couple hours before you turn in).

It's about "Lock Bumping". And evidently, the Internet is loaded with step-by-step instructions to open 90% of locks with a special key being sold on the Internet for a few bucks.

Anyway, here's the video:

Here in Phoenix, homes are still selling at a good pace. In all likelihood, the Phoenix market is skipping along the bottom in terms of sales velocity. However, with high inventory rates, there continues to be downward pressure on home values and as a result, home prices are still in decline mode. 

The most common mistake that home sellers and/or their agents make is "following the herd". Despite what the media says about market conditions, the highest value, best priced homes (the top 10%) are still going pending at a healthy pace...and often quickly! These are homes that are priced well from day 1 of activating on the market. Where home sellers fail is pricing their home in the same cluster as everything else. Sooner or later an well-educated (in market conditions) seller (and their agent) will come along, price well-below the cluster and go pending quickly...then "the herd" slowly, often begrudgingly lowers their price to what was once a value for the neighborhood - at this point the price adjustment is often too late...it becomes the new baseline and no longer perceived to be a value or "steal" to buyers.

Go lead the herd!