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 phoenix. Show all posts
Showing posts with label phoenix. 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!
Tuesday, August 18, 2009
Appraisers Under Fire?
During the boom years, appraisers were questioned on presenting appraisals that were multiple percentage points higher between similar houses closing within a month's times of each other. Now the tables have turned and the appraisers are being questioned on the de-valuing of houses when they are appraised and under contract. So the house is listed and often as a short sale. A buyer has presented their best offer, the funding lender orders an appraisal and it comes back lower than the offered price. Well now the listing agent must go back to the seller's lenders and ask for further reduction in payoff.
Why is this happening? Well it is the new guidelines the appraisers are having to work under. First, loan officers, mortgage brokers and real estate agents cannot have any role in selecting appraisers. So the lenders are outsourcing the selection process to AMC's or Appraisal Management Companies. These management companies take a hefty fee of nearly half of the appraisers fee for giving them the assignment. Instead of the appraiser working in a specific area of familiarity, they are being asked to work anywhere and everywhere requiring them to travel great distances for an appraisal on a property they are not familiar with. Now when doing an appraisal you make adjustments to the comparable properties. So that requires a little research to figure what the adjustment for an extra garage bay or an extra bedroom or larger lot size should be compared to other properties. So the appraiser has more homework to do for half the pay.
Other considerations or adjustments appraisers need to account for (in my opinion) is properties that are sold as foreclosures versus short sales versus normal transactions. A foreclosed property usually has limited disclosures, no SPDS report, no CLUE report, shortened inspection period (some lenders even requiring the inspection to be done BEFORE presenting the offer). So naturally that would lead someone to present an offer at a discount because they are limited in the knowledge of a property. Whereas in a short sale or normal transaction, you will receive a Seller Property Disclosure Statement, you will receive a Comprehensive Loss Underwriting Exchange report so the buyer knows the claims history on the property and if there are any problems the owner knows about. Also a foreclosed or lender owned property will result in a daily per diem charge if the property does not close in time. A short sale or normal transaction the close of escrow date can usually be extended with no harm to either side.
How about financing, does a cash purchase have as high of closing costs as an FHA loan? No it does not, and therefore in a cash transaction shouldn't there be an adjustment on the price as to what someone would have paid if it were financed? Well just some food for thought.
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!
Why is this happening? Well it is the new guidelines the appraisers are having to work under. First, loan officers, mortgage brokers and real estate agents cannot have any role in selecting appraisers. So the lenders are outsourcing the selection process to AMC's or Appraisal Management Companies. These management companies take a hefty fee of nearly half of the appraisers fee for giving them the assignment. Instead of the appraiser working in a specific area of familiarity, they are being asked to work anywhere and everywhere requiring them to travel great distances for an appraisal on a property they are not familiar with. Now when doing an appraisal you make adjustments to the comparable properties. So that requires a little research to figure what the adjustment for an extra garage bay or an extra bedroom or larger lot size should be compared to other properties. So the appraiser has more homework to do for half the pay.
Other considerations or adjustments appraisers need to account for (in my opinion) is properties that are sold as foreclosures versus short sales versus normal transactions. A foreclosed property usually has limited disclosures, no SPDS report, no CLUE report, shortened inspection period (some lenders even requiring the inspection to be done BEFORE presenting the offer). So naturally that would lead someone to present an offer at a discount because they are limited in the knowledge of a property. Whereas in a short sale or normal transaction, you will receive a Seller Property Disclosure Statement, you will receive a Comprehensive Loss Underwriting Exchange report so the buyer knows the claims history on the property and if there are any problems the owner knows about. Also a foreclosed or lender owned property will result in a daily per diem charge if the property does not close in time. A short sale or normal transaction the close of escrow date can usually be extended with no harm to either side.
How about financing, does a cash purchase have as high of closing costs as an FHA loan? No it does not, and therefore in a cash transaction shouldn't there be an adjustment on the price as to what someone would have paid if it were financed? Well just some food for thought.
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!
Tuesday, August 4, 2009
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.
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.
Thursday, July 30, 2009
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.
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