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!

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.

Fannie Mae posts $14.8 Billion net loss

In a Wall Street Journal article "Fannie Seeks $10.7 Billion From Treasury After Big Loss" written by Nick Timiraos, he says Fannie posted a $14.8 Billion loss and needs $10.7 Billion for the US Treasury. The loss is due to rising unemployment and more prime borrowers defaulting on their loans. See the story here http://online.wsj.com/article/SB124960826802413197.html

The treasury has already pledged to provide as much as $400 Billion to keep Fanie Mae and Freddie Mac going. We have yet to see how the Obama administration will ultimately determine how the two companies will be run and/or divided or privatized or nationalized. Fannie Mae and Freddie Mac are the two largest buyers of mortgages on the secondary mortgage market.

If you are considering to purchase a home and looking for a lender to purchase real estate in arizona, please contact Marie Zubkoff 480.233.7051 or Andrew Walsh 602.527.2639 for a referral. We can also keep you away from brokers who were relying on the Taylor Bean who has recently ceased operations. Visit and send us a message at http://yourgilberthome.com/

Short Sales

Much has been made of short sales and foreclosures in the state of Arizona. People generally argue which is better and often bring the topic of bankruptcy in their conversation. This post will be relatively short considering the depth of this overall topic of Arizona Real Estate. Some key differences between a short sale and foreclosure are the credit reporting, a foreclosure will do more damage to your credit score and for a longer period of time. Your eligibility to get another loan (conforming loan that Freddie or Frannie would buy on the secondary market). If you are foreclosed on a home, then you cannot get a conforming loan for FIVE (5) years! A short sale will only cost you TWO (2) years. In a foreclosure, if the lender (usually the second if it is a HELOC or a cash out refinance) has a right to a deficiency, they can still try to collect from you after a foreclosure. In a short sale, it is sometimes possible to have both or at least the second lien holder to put in writing they will NOT pursue the deficiency! There are three valuable reasons to entertain a short sale instead of a foreclosure. I did not discuss a "Deed in Lieu of Foreclosure" because lenders generally will not accept those without first trying to do a short sale, and a Deed in Lieu will leave that lender responsible for all other liens on the property.

Contact Marie Zubkoff 480.233.7051 or Andrew Walsh 602.527.2639 for more information on a short sale. If you need a referral to a qualified CPA or Attorney, call us we can get you help. http://yourgilberthome.com/

Arizona Residential Landlord and Tenant Act

The Secretary of State has issued a new Landlord Tenant Act in February of this year. However they will no longer be available via print once the current issues run out. So either call today and pick up your free printed copy, or you can go to this link http://www.azsos.gov/public_services/Publications/Residential_Landlord_Tenant_Act/residential.pdf and print out your own copy. Either way, for those of you who own rental or investment properties and those of you who are renters, PLEASE do yourself a favor and print off the latest copy and read.

If you have other questions or need a property management service or a referral for legal advice, contact Marie Zubkoff 480-233-7051 or Andrew Walsh 602-527-2639 right away for your Arizona Real Estate needs.

BEWARE -Bogus Property Tax Offer

Please read the following message from Arizona Attorney General Terry Goddard:

Attorney General Terry Goddard is warning Arizona homeowners to be wary of official-looking advertisements claiming that a homeowner’s property qualifies for a “property tax reduction review.” This solicitation appears to be an attempt to scam homeowners who are looking to reduce their property tax bill.

The solicitation, which requests a $189 processing fee, is not affiliated with any government entity. The document attempts to appear official and contains a “notice number” and deadline for prompt processing.

Assessed valuations for 2009 cannot be changed since the appeals process for 2009 has ended. In addition, there is no fee required to file a property valuation appeal with county treasurers’ or assessors’ offices in Arizona.

If you believe you have been a victim of consumer fraud, please contact the Attorney General's Office in Phoenix at 602.542.5763, in Tucson at 520.628.6504, or outside the Phoenix and Tucson metro areas at 1.800.352.8431. Consumers can also file complaints online by visiting the Attorney General’s Website. To file a complaint in person, the Attorney General’s Office has satellite offices throughout the state with volunteers available to help. Locations and hours of operation are posted on the Attorney General’s website http:///www.azag.gov/

If you need other information, contact Marie Zubkoff or Andrew Walsh, your Arizona real estate professionals.

First Time Homebuiyer's Tax Credit -CLOSING COSTS

The first-time homebuyer tax credit can be used to pay closing costs or an additional amount over the required 3.5% down on an FHA loan. HUD has strict guidance and regulations on this so you must contact your lender for direction as to how the loan from the tax credit would be repaid and when. Using the tax credit for this purpose is done through what is considered to be a bridge loan or personal loan. For more information on the $8,000 tax credit uses in Arizona, contact Andrew Walsh or Marie Zubkoff for our recommendation of lenders and to ultimately purchase your property here in the valley of the sun.

$8,000 Tax Credit -How much will it be?

Follow the next couple days while we detail some of the information on the first time homebuyer's tax credit.

The maximum allowable credit is $8,000. The credit is equal to 10% of the purchase price of the home. The income limits are $75,000 for single buyers and $150,000 for married couples with incomes up to $150,000. The credit decreases for higher incomes, and eligibility is lost at $95,000 for single buyers and $170,000 for married couples.

Contact Marie Zubkoff or Andrew Walsh to purchase your home in Arizona. We work the entire valley, from Surprise, Florence, Casa Grande, Maricopa, Scottsdale, Phoenix, and all in between.

Weekend Freeway Closures

Are you tired of every time you go to see or show a house and you are driving on the freeway and run into a detour that had you known was there you could have taken a different route? Well simply sign up to receive weekly updates on freeway restrictions and closures at http://www.azdot.gov/ . You can receive email updates weekly. They are sent out by Brock Barnhart Community Relations Project Manager. You will thank him the next time you are the smart one bypassing the hour long delay! -This notice a courtesy of your friends in real estate!

Home discount coupons?

Your friends Marie Zubkoff and Andrew Walsh are currently in negotiations with a local company that is heading up a negotiation with local builders for us to market their properties and even provide YOU our clients with a coupon to discount the price of the house! Check back soon or contact us for details. This is intended to be available valley wide for our clients, whether in Gilbert, Surprise, Phoenix, Mesa, etc... You can save more on a new home when you contact Andrew Walsh or Marie Zubkoff first. Find out the added benefits of using a REALTOR instead of being a walk-in.

Senator Steve Pierce discusses SB-1271 with AAR

Senator Steve Pierce met with the Arizona Association of REALTORS regarding the recently passed bill SB-1271. The outcome of the meeting was agreement that there is a better way to help local banks in Arizona then the extreme the bill SB-1271 possesses. The AAR thanked Senator Pierce for his efforts, time and energy he has put forth to this issue. So hopefully soon the governor will repeal the bill so it may be modified to be more balanced for borrowers and lenders alike.

Buyer's Guide

If you are a new buyer in the market, please go to the buyer's page of our website http://www.yourgilberthome.com/contactform.asp and fill in your name, email and request a buyer's guide. We can email one right over to you! There is a ton of great information for you to start familiarizing yourself with the purchase of a home in Arizona. You may also contact Marie Zubkoff 480-233-7051 or Andrew Walsh 602-527-2639 directly.

New TILA Disclosure requirements. Who is TILA?

TILA is the Truth In Lending Act also known as Regulation Z. A new requirement added for Arizona as well as the rest of the nation for lenders to provide another disclosure. The new requirements apply to all mortgages including primary and secondary homes. Investor loans are exempt.

Lenders must give good faith estimates of mortgage loan costs within 3 business days after the consumer applies for a loan (early disclosure). The lender may not collect any fees before the disclosure is provided except for a credit report fee.

THE CLOSING MAY NOT TAKE PLACE UNTIL THE EXPIRATION OF A 7 DAY WAITING PERIOD AFTER THE CONSUMER RECEIVES THE EARLY DISCLOSURE!

Under strict circumstances this period may be waived by the consumer. It may NOT be a standard of practice for the lender to ask the consumer to waive this waiting period.

If the APR changes by more than 0.125 percent the lender must provide a corrected disclosure and wait an additional 3 BUSINESS days before closing the loan. The APR includes the interest rate and other costs related to the settlement of the loan.

Please contact Andrew or Marie for a lender referral if you are looking to purchase or refinance your home in Arizona! The source of this information is the arizona association of REALTORS.

The Dangerous SB-1271 for Arizona

What are some of the elements of bill SB-1271 that make it dangerous for the Arizona real estate market? Well let's take a look at some them pointed out in the letter the AAR CEO Tom Farley wrote to Governor Jan Brewer: Second/Vacation homes, rental property, and family-owned property may lose their anti-deficiency protection if the trustor did not utilize or occupy the property for six consecutive months. The loss of this protection could lead to deficiency judgments being placed on or against personal, real and perishable property. Bear in mind, deficiency judgments CAN result in the garnishmet of wages! Bankruptcy filings may increase because of this which will likely cause additional creditors to be harmed.

Another well thought out point Tom Farley addresses is that this amended statute is retroactive. So that it is not forward looking. The terms are not changed for loans that are originated after a future date, they retroactively affect all loans that have already been created. Also, lenders that receive TARP funds are also authorized to seek deficiency judgements against property owners after foreclosure. So a lender can foreclose... get a deficiency judgment... AND receive TARP funds? And all of this in one of the fastest states to file and foreclose on a home. Tom Farley is correct when he says "There are many reasons, .....to be profoundly concerned about the consequences of this bill".

A Call to the Arizona Governor

Apparently the Arizona Association of REALTORS has written a letter to the Arizona Governor Jan Brewer. It is a request to Amend the Call for Special Session to Address Issues Resulting from SB 1271's passage. In a letter dated July 22, 2009, AAR CEO Tom Farley writes a three page letter accompanied by 30+ pages of Case law and practical issues backing up his claim that the recently passed SB 1271 amendement to the anti-deficiency statutes has gone too far and shifts the now balanced power between owners and lenders to the lenders favor. In the form of a fast foreclosure, and a double recovery for the lender. Thereby minimizing the possibility a lender would even consider working with a homeowner in distress since they could foreclose the property quickly for pennies on the dollar and pursue the deficiency from a judgement easily obtained. CHECK BACK FOR MORE!

SB-1271 Anti-Deficiency Statute

The anti-deficiency bill SB-1271 that passed Arizona legislation is receiving some heat. The original intention was to prevent investors in Arizona from foreclosing and short selling homes and sticking the local Arizona lenders with out any method of recovering the funds and thus making those banks go belly up. The major change was the requirement that the borrower had lived in the property for six consecutive months. Stick with us as we cover this topic over the next couple days.

Would be homebuyers cautious as layoffs rise

A new poll shows that the biggest reason potential homebuyers are not prepared to buy?... Fear of losing their job! Please read the full article by Alan Zibel here http://hosted.ap.org/dynamic/stories/H/HOUSING_TRENDS?SITE=AZMES&SECTION=HOME&TEMPLATE=DEFAULT