First you need to understand how a reverse mortgage works. A reverse mortgage is an arrangement in which a lender actually pays the borrower a monthly payment which increases the mortgage balance instead of the borrower making monthly payments to bring the balance down. Backwards right? Well at least the name "reverse mortgage" is accurate. A reverse mortgage is a relatively new concept and is aimed towards retirees or people on fixed incomes who have equity in their home and need a steady or controlled cash flow. There are a few different options or scenarios on how the reverse mortgage is eventually paid off or forgiven. You will need to speak with a lender to see what is available.
In today's article written by Anne Tergesen of the Wall Street Journal, she writes about Reverse mortgages being the latest twist in mortgage fraud. It is an excellent and well written article. Please click on this link to read
Be sure to share with anyone you know who may be looking to do this type of mortage. The more knowledge they have and questions they ask their lender the better. Also we can refer you to lenders that can do reverse mortgages too. As always... If you want to sell your house or are looking for a house in Gilbert, Phoenix, Laveen, Surprise or another city or town in Maricopa or Pinal counties, contact Marie Zubkoff at 480.233.7051 or Andrew Walsh 602.527.2639 with US Preferred Realty.Visit us at http://YourGilbertHome.com Thank you!
Showing posts with label US Preferred Realty. Show all posts
Showing posts with label US Preferred Realty. Show all posts
Thursday, August 27, 2009
Wednesday, August 26, 2009
New Push to Extend Tax Credit
Okay, this is a long one but necessary.....
By Kenneth R Harney
It's one of the biggest unknowns bugging would-be buyers of houses and condos this summer: Will Congress let the $8,000 nonrepayable tax credit for first-time purchasers expire as scheduled 14 weeks from now? Or will the credit get a second life and be extended for another six to 12 months, taking pressure off buyers, realty agents and settlement companies?
That's an especially urgent matter if you're a buyer just starting to shop and you see entry-level prices bottoming out or rebounding. The tax credit statute requires buyers to fully close on their purchases -- not just be under contract -- no later than Nov. 30. This doesn't leave a lot of leeway for people who haven't yet decided on a specific house and who haven't nailed down mortgage financing.
The whole process of negotiating offers, signing sales contracts, applying for a loan and completing the closing can easily extend for two months -- or a lot more if things get off track.
Given the rapidly approaching deadline, what's the likelihood that Congress will blow the whistle and allow at least a little extra time? Here's a quick overview: Though Congress technically is on its summer break, most members of the Senate and House use part of the August recess to meet with and listen to constituents back in their home districts.
This year, the two biggest housing trade groups -- the 1.2 million-member National Association of Realtors and the National Association of Home Builders -- are spending the month mounting unusually intense grass-roots lobbying campaigns to make the case for extending the credit, and maybe even expanding it.
Delegations of home builders and realty brokers already have begun descending on district offices, delivering what Jerry Howard, president and CEO of the builders association, calls "the hard economic facts" -- the numbers of houses sold in each congressman's district that are attributable to the tax credit; the economic ripple effects on local businesses, manufacturers and service industries; new jobs and income; plus the additional tax revenues that all this activity will help produce for local governments.
On a national basis, according to economists at the National Association of Realtors, anywhere from 300,000 to 350,000 additional sales of houses will be stimulated this year by the credit. Each home sale generates about $63,000 in downstream "ripple effects" elsewhere in the economy, they say -- sales of furnishings, appliances, lawn mowers, landscaping, renovation materials, plus moving expenses.
If you accept the numbers -- and some analysts consider them a stretch -- this means the housing credit provides a powerful, immediate stimulus bang for the buck. Failure to extend what may be one of the most effective pieces of the Obama administration's 2009 stimulus legislation would cost jobs, economic growth and tax revenues, the housing groups argue.
There are some early signs Congress may be getting the message. Bills already are pending in both houses to extend the credit for another year. Senate Majority Leader Harry M. Reid (D-Nev.), whose state has been among the worst hit by the housing bust, reportedly now favors an extension of the credit. Sen. Chris Dodd (D-Conn.), chairman of the Senate Banking Committee and in a tight race for re-election next year, is co-sponsoring a bill with Georgia Republican Johnny Isakson that would raise the credit amount to a maximum of $15,000. Meanwhile, both the Realtors and the builders are pushing not only for extension of the credit, but for broadening it to cover all home purchases in 2010.
But can any of this happen before the Nov. 30 deadline? The key complicating factor here is Congress' heavy load of higher-profile, pressing issues that will get attention before anything else in September and October: health care reform, climate change and energy, financial system regulatory reform and a new Consumer Financial Protection Agency, among others. On top of that, a tax credit extension would cost billions in lost revenues.
In the end, however, given the political economics of the housing credit, the odds favor some sort of extension, probably later rather than sooner. Don't bank on a bigger credit, however, or broadening the concept to cover all purchasers next year.
If you are eligible for the first time homebuyer tax credit and are looking for a house in Gilbert, Phoenix, Laveen, Surprise or another city or town in Maricopa or Pinal counties, contact Marie Zubkoff at 480.233.7051 or Andrew Walsh 602.527.2639 with US Preferred Realty.Visit us at http://YourGilbertHome.com Thank you!
By Kenneth R Harney
It's one of the biggest unknowns bugging would-be buyers of houses and condos this summer: Will Congress let the $8,000 nonrepayable tax credit for first-time purchasers expire as scheduled 14 weeks from now? Or will the credit get a second life and be extended for another six to 12 months, taking pressure off buyers, realty agents and settlement companies?
That's an especially urgent matter if you're a buyer just starting to shop and you see entry-level prices bottoming out or rebounding. The tax credit statute requires buyers to fully close on their purchases -- not just be under contract -- no later than Nov. 30. This doesn't leave a lot of leeway for people who haven't yet decided on a specific house and who haven't nailed down mortgage financing.
The whole process of negotiating offers, signing sales contracts, applying for a loan and completing the closing can easily extend for two months -- or a lot more if things get off track.
Given the rapidly approaching deadline, what's the likelihood that Congress will blow the whistle and allow at least a little extra time? Here's a quick overview: Though Congress technically is on its summer break, most members of the Senate and House use part of the August recess to meet with and listen to constituents back in their home districts.
This year, the two biggest housing trade groups -- the 1.2 million-member National Association of Realtors and the National Association of Home Builders -- are spending the month mounting unusually intense grass-roots lobbying campaigns to make the case for extending the credit, and maybe even expanding it.
Delegations of home builders and realty brokers already have begun descending on district offices, delivering what Jerry Howard, president and CEO of the builders association, calls "the hard economic facts" -- the numbers of houses sold in each congressman's district that are attributable to the tax credit; the economic ripple effects on local businesses, manufacturers and service industries; new jobs and income; plus the additional tax revenues that all this activity will help produce for local governments.
On a national basis, according to economists at the National Association of Realtors, anywhere from 300,000 to 350,000 additional sales of houses will be stimulated this year by the credit. Each home sale generates about $63,000 in downstream "ripple effects" elsewhere in the economy, they say -- sales of furnishings, appliances, lawn mowers, landscaping, renovation materials, plus moving expenses.
If you accept the numbers -- and some analysts consider them a stretch -- this means the housing credit provides a powerful, immediate stimulus bang for the buck. Failure to extend what may be one of the most effective pieces of the Obama administration's 2009 stimulus legislation would cost jobs, economic growth and tax revenues, the housing groups argue.
There are some early signs Congress may be getting the message. Bills already are pending in both houses to extend the credit for another year. Senate Majority Leader Harry M. Reid (D-Nev.), whose state has been among the worst hit by the housing bust, reportedly now favors an extension of the credit. Sen. Chris Dodd (D-Conn.), chairman of the Senate Banking Committee and in a tight race for re-election next year, is co-sponsoring a bill with Georgia Republican Johnny Isakson that would raise the credit amount to a maximum of $15,000. Meanwhile, both the Realtors and the builders are pushing not only for extension of the credit, but for broadening it to cover all home purchases in 2010.
But can any of this happen before the Nov. 30 deadline? The key complicating factor here is Congress' heavy load of higher-profile, pressing issues that will get attention before anything else in September and October: health care reform, climate change and energy, financial system regulatory reform and a new Consumer Financial Protection Agency, among others. On top of that, a tax credit extension would cost billions in lost revenues.
In the end, however, given the political economics of the housing credit, the odds favor some sort of extension, probably later rather than sooner. Don't bank on a bigger credit, however, or broadening the concept to cover all purchasers next year.
If you are eligible for the first time homebuyer tax credit and are looking for a house in Gilbert, Phoenix, Laveen, Surprise or another city or town in Maricopa or Pinal counties, contact Marie Zubkoff at 480.233.7051 or Andrew Walsh 602.527.2639 with US Preferred Realty.Visit us at http://YourGilbertHome.com Thank you!
Friday, August 21, 2009
Prime loan delinquencies rising
Per results from the latest survey of the Mortgage Bankers Association, 13.2% of mortgages on homes with one to four units in the second quarter this year were a minimum month overdue or in foreclosure. This figure is higher than the 12.1% in the first quarter of this year, and 9% this time last year.
Prime loans are at 9% from 5.35% last year, and subprime loans at 39.5% up from 30% last year. Under 300,000 borrowers have been able to refinance, or modify their loans under government sponsored modification programs. Drastically less than what was anticipated. Job loss and declining home values are big factors in why modification is not working and the increasing number of foreclosures.
Where does Arizona rank in all this? Together with California they account for 44% of all foreclosures. Nearly half of all borrowers in Arizona had negative equity
at the end of June.
Please read the article that was my source for this information at the Wall Street Journal written by Nick Timiraos. http://online.wsj.com/article/SB125082120504548471.html
If you are interested in buying or selling your house in Gilbert, Phoenix, Scottsdale, Mesa or another city or town in Maricopa or Pinal counties, contact Marie Zubkoff at 480.233.7051 or Andrew Walsh 602.527.2639 with US Preferred Realty.Visit us at http://YourGilbertHome.com Thank you!
Prime loans are at 9% from 5.35% last year, and subprime loans at 39.5% up from 30% last year. Under 300,000 borrowers have been able to refinance, or modify their loans under government sponsored modification programs. Drastically less than what was anticipated. Job loss and declining home values are big factors in why modification is not working and the increasing number of foreclosures.
Where does Arizona rank in all this? Together with California they account for 44% of all foreclosures. Nearly half of all borrowers in Arizona had negative equity
at the end of June.
Please read the article that was my source for this information at the Wall Street Journal written by Nick Timiraos. http://online.wsj.com/article/SB125082120504548471.html
If you are interested in buying or selling your house in Gilbert, Phoenix, Scottsdale, Mesa or another city or town in Maricopa or Pinal counties, contact Marie Zubkoff at 480.233.7051 or Andrew Walsh 602.527.2639 with US Preferred Realty.Visit us at http://YourGilbertHome.com Thank you!
Friday, August 14, 2009
REO sales see reduced market share
According to ARMLS sales reports for July, REO sales have seen a reduced market share. The past few months the REO property shares have dropped from a high of 68% in January to 54.4% in July. Traditional resales, and short sales making up the remaining 45.6%.
If you are interested in buying an REO property or selling your home or other real estate in Surprise, Phoenix, Scottsdale, Glendale or another city or town in Maricopa or Pinal counties, contact Marie Zubkoff at 480.233.7051 or Andrew Walsh 602.527.2639 with US Preferred Realty.Visit us at http://YourGilbertHome.com Thank you!
If you are interested in buying an REO property or selling your home or other real estate in Surprise, Phoenix, Scottsdale, Glendale or another city or town in Maricopa or Pinal counties, contact Marie Zubkoff at 480.233.7051 or Andrew Walsh 602.527.2639 with US Preferred Realty.Visit us at http://YourGilbertHome.com Thank you!
Thursday, August 13, 2009
Lost Our Home Pet Foundation
A group of REALTORS in the South East Valley Association of REALTORS has put forth an effort to save and adopt pets who have been left behind in foreclosed homes. Unfortunately, sometimes foreclosure even leaves these wonderful animals lost and homeless. LOHPF is a non-profit group that rescues, fosters, heals and adopts these animals. If you would like more information, please visit http://LostOurHome.org and you can see pictures of the pets and find out how you too can make a difference.
If you are interested in buying or selling your home or other real estate in Gilbert, Phoenix, Scottsdale, Mesa or another city or town in Maricopa or Pinal counties, contact Marie Zubkoff at 480.233.7051 or Andrew Walsh 602.527.2639 with US Preferred Realty.Visit us at http://YourGilbertHome.com Thank you!
If you are interested in buying or selling your home or other real estate in Gilbert, Phoenix, Scottsdale, Mesa or another city or town in Maricopa or Pinal counties, contact Marie Zubkoff at 480.233.7051 or Andrew Walsh 602.527.2639 with US Preferred Realty.Visit us at http://YourGilbertHome.com Thank you!
Wednesday, August 12, 2009
Count down to Tax Credit Elimination
ALL FIRST TIME HOMEBUYERS MUST CLOSE BY MIDNIGHT NOVEMBER 30, 2009.
Well, that is if you qualify for, and want to take advantage of.... the $8,000 tax credit for purchasing a home. In past posts we went over some of the qualifications for the tax credit such as:
1) You cannot have owned a home in the past three years.
2) Income requirements cannot exceed $75,000 if single and $150,000 for married.
3) The credit is worth 10% of the purchase price of the home up to a maximum credit of $8,000.
Now, what does the December 1, 2009 due date mean? Well it means that your home must CLOSE on or before midnight of November 30, 2009. OR YOU LOSE THE CREDIT.... Make sure if you are presenting offers that you allow a few days to a week for minor delays... Do not risk $8,000! Because you cannot get an extension unless Uncle Sam gives it to everyone.
Exactly how much time does that leave you if you have not even started to find a home? Well let's work backwards. Say to be safe you allow the closing two Fridays before the deadline. That makes it November 20th. Now once the property is found you need an average of 45 days to close. So let's figure the under contract date to be October 6. So if your home is to be under contract by October 6, that allows about seven weeks from today to find your home. Certainly plenty of time for you to find an agent, obtain financing from a qualified lender, and start looking. But, you do not have time to sit on the fence to determine whether or not you want to continue renting for another couple months before looking while you wait to see what the market does.
So, it's time to contact that qualified agent. Marie Zubkoff at 480.233.7051 or Andrew Walsh 602.527.2639 with US Preferred Realty. Visit us at http://YourGilbertHome.com Thank you!
Well, that is if you qualify for, and want to take advantage of.... the $8,000 tax credit for purchasing a home. In past posts we went over some of the qualifications for the tax credit such as:
1) You cannot have owned a home in the past three years.
2) Income requirements cannot exceed $75,000 if single and $150,000 for married.
3) The credit is worth 10% of the purchase price of the home up to a maximum credit of $8,000.
Now, what does the December 1, 2009 due date mean? Well it means that your home must CLOSE on or before midnight of November 30, 2009. OR YOU LOSE THE CREDIT.... Make sure if you are presenting offers that you allow a few days to a week for minor delays... Do not risk $8,000! Because you cannot get an extension unless Uncle Sam gives it to everyone.
Exactly how much time does that leave you if you have not even started to find a home? Well let's work backwards. Say to be safe you allow the closing two Fridays before the deadline. That makes it November 20th. Now once the property is found you need an average of 45 days to close. So let's figure the under contract date to be October 6. So if your home is to be under contract by October 6, that allows about seven weeks from today to find your home. Certainly plenty of time for you to find an agent, obtain financing from a qualified lender, and start looking. But, you do not have time to sit on the fence to determine whether or not you want to continue renting for another couple months before looking while you wait to see what the market does.
So, it's time to contact that qualified agent. Marie Zubkoff at 480.233.7051 or Andrew Walsh 602.527.2639 with US Preferred Realty. Visit us at http://YourGilbertHome.com Thank you!
Monday, August 10, 2009
Investors Listing & Buying Short Sales?
Have you been contacted by an investor that wants to list and buy your short sale? Here are five tips to think about and questions to ask before listing with them. We will cover more on another day.
1). Are they requiring the use of their preferred listing agent or REALTOR? If so who is that listing agent representing. Who is going over the listing agreement with you? Is it the investor who is buying the property or the listing agent who is supposed to represent you?
2). Make sure you receive and fully understand the agency disclosure and election. NO real esate transaction should ever take place without a buyer AND seller acknowledging both sides by signing this!
3). What are the current market comparables to your home? Ask for this and review them. Make sure the homes accurately represent yours.
4). Short sale addendum, make sure there is a short sale addendum included and you thoroughly read and understand it.
5). Look for, Read and Understand the opt out clause. Generally as a seller if you accept a buyer's offer, you must sell your home to them. In the presence of a short sale though, the sale is contingent upon the lender's or "third parties" approval (if a short sale addendum is included).
A bonus tip when you are working with investors, is to make sure all of the forms are drafted from boiler plate Arizona Association of REALTORS forms. These forms are created in the interest of the general public. Please please please if you do not understand any of the forms, consult an attorney to help explain them to you.
If you are approached by an investor looking to purchase your home, please also interview other agents whose primary focus is to sell your home rather than buy it to make a profit. A traditional REALTOR has the same goal as you which is to sell the home. Not to buy it in hopes to make a big profit.
Contact Marie Zubkoff at 480.233.7051 or Andrew Walsh at 602.527.2639 with US Preferred Realty to discuss your Arizona Real Estate needs. If you are a buyer or seller, we can help. visit us at http://YourGilbertHome.com Thank you!
1). Are they requiring the use of their preferred listing agent or REALTOR? If so who is that listing agent representing. Who is going over the listing agreement with you? Is it the investor who is buying the property or the listing agent who is supposed to represent you?
2). Make sure you receive and fully understand the agency disclosure and election. NO real esate transaction should ever take place without a buyer AND seller acknowledging both sides by signing this!
3). What are the current market comparables to your home? Ask for this and review them. Make sure the homes accurately represent yours.
4). Short sale addendum, make sure there is a short sale addendum included and you thoroughly read and understand it.
5). Look for, Read and Understand the opt out clause. Generally as a seller if you accept a buyer's offer, you must sell your home to them. In the presence of a short sale though, the sale is contingent upon the lender's or "third parties" approval (if a short sale addendum is included).
A bonus tip when you are working with investors, is to make sure all of the forms are drafted from boiler plate Arizona Association of REALTORS forms. These forms are created in the interest of the general public. Please please please if you do not understand any of the forms, consult an attorney to help explain them to you.
If you are approached by an investor looking to purchase your home, please also interview other agents whose primary focus is to sell your home rather than buy it to make a profit. A traditional REALTOR has the same goal as you which is to sell the home. Not to buy it in hopes to make a big profit.
Contact Marie Zubkoff at 480.233.7051 or Andrew Walsh at 602.527.2639 with US Preferred Realty to discuss your Arizona Real Estate needs. If you are a buyer or seller, we can help. visit us at http://YourGilbertHome.com Thank you!
Sunday, August 9, 2009
Underwater Homes
Another real estate milestone number crunch. Due to the decline in home prices, now 32% of homes in the US are without equity as compared to 15% a year earlier. This is according Moody's Economy.com. The states at the top of this list? You ready? They are pretty close... Nevada at number one with 40%, Arizona number two at 37% and California number 3 at 33%. Who is doing the best? Well that is West Virginia at 13%, and Louisiana at 16% is number 2. Here is an article you may find of interest at the WSJ. http://blogs.wsj.com/developments/2009/08/05/more-homeowners-upside-down-on-mortgages/
Remember for your Arizona real estate questions and needs, contact Marie Zubkoff 480-233-7051 or Andrew Walsh 602-527-2639. Your US Preferred Realty agents, visit us at http://YourGilbertHome.com Thank you!
Remember for your Arizona real estate questions and needs, contact Marie Zubkoff 480-233-7051 or Andrew Walsh 602-527-2639. Your US Preferred Realty agents, visit us at http://YourGilbertHome.com Thank you!
Saturday, August 8, 2009
Taylor Bean to Cease Operations
Here is a link to an article by James R Hagerty regarding the Taylor Bean mortgage lending corporation... http://http://online.wsj.com/article/SB124949523458308423.html
This anouncement will hold up many home purchases that were awaiting to close if they were using Taylor, Bean & Whitaker for lending or funding. Not only that, but many of the borrowers may find themselves having to pay perdiem charges if they were purchasing an REO home. Many sellers may lose their buyers and ultimately end up with their home foreclosed if that buyer cannot get new financing right away. This is not just a secondary purchaser of loans, this is a company that would actually fund the purchase.
Please call Marie Zubkoff 480.233.7051 or Andrew Walsh 602.527.2639 with US Preferred Realty to purchase your home in Arizona or if you need to sell your home. We excel in short sales and distressed properties. Visit us at http://YourGilbertHome.com.
This anouncement will hold up many home purchases that were awaiting to close if they were using Taylor, Bean & Whitaker for lending or funding. Not only that, but many of the borrowers may find themselves having to pay perdiem charges if they were purchasing an REO home. Many sellers may lose their buyers and ultimately end up with their home foreclosed if that buyer cannot get new financing right away. This is not just a secondary purchaser of loans, this is a company that would actually fund the purchase.
Please call Marie Zubkoff 480.233.7051 or Andrew Walsh 602.527.2639 with US Preferred Realty to purchase your home in Arizona or if you need to sell your home. We excel in short sales and distressed properties. Visit us at http://YourGilbertHome.com.
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