Real Estate Information

The HAMP program is a dismal failure. 116,000 loans have been modified out of the millions of applicants who asked for help. I read an article from NPR that recalled the great depression era solution. President Roosevelt created a program called HOLC or Home Owners Loan Corporation. In essence they purchased loans in distress from banks and negotiated new affordable mortgages with homeowners. President Obama has misunderstood the calculus faced by homeowners facing foreclosure, homeowners upside down in their homes have little incentive to save it even with a lower payment. modifications that reduce principal are far more successful than those that just lower the interest rate, the extend and pretend mantra that lenders use in today's mod's often include missed payments, late fees, service charges racking up an even higher principal balance.

In contrast a homeowner with equity to protect will find a way to make those monthly payments. The time for the government to step in is now. The servicers fear that if they lower peoples principal balance, more and more people will stop paying and wait for an offer to be given to them. Many servicers also will not sell those notes at least not at a realistic price so how is the HOLC program going to work? Eminent domain, existing laws allow the purchase of property interests other than the outright ownership of land. If the government could buy these assets either by voluntary sale or by eminent domain for 30 to 50 cents on the dollar there would be ample room to reduce principal balance to make the mortgages more affordable. The new HOLC program like the original could pick and choose the mortgages it buys, it should only be used for primary residences and it should refuse mortgages that homeowners can afford but choose not to pay.

The best part is President Obama could enact this with out any further input from Congress and a portion of the TARP funds (75 Billion) could easily finance such an operation. It should stem off the foreclosure crisis and more importantly, it will cause lenders fearing Eminent domain and losing assets at a deep discount to voluntarily reduce principal balances.

Winter is here, have home sales cooled off as well? In Arizona sales and rentals are hot! I think we have hit the bottom last fall and it is just a matter of time until the negative inventory out there gets bought up by investors and bargain hunters alike. The first time 8K buyer tax credit is in full swing through April 010 as is the second time primary home buyer credit for $6500.00 Rates are low and inventory is high, it's the perfect storm. If you are looking for a home to buy or rent, drop me a note the shopping is great!

Short sales, are they doomed to foreclosure domination? Just when short sales were getting easier to do and the CDPE designation was being handed out by the fist-full another curve ball comes in. Does the seller have a sincere hardship? death, unemployment etc. If your house is upside down in value that is not a hardship, unfortunately. It is the way it is, currently. 

I list homes for sale and for lease. I price them correctly, I take great photos. I schmooze the sometimes tenants and I get them to move on, deal with any attorney or management company they have and get it all in writing. I screen the buyers and their lenders and I sent the owners lender every single thing they wanted, sometimes before they even asked for it. I have contacted the HOA after negotiations broke down due to the seller or the managers attitude now and again and pleaded them to offer justice to my client and settle the past due bill even though they sometimes did not deserve it.

The lenders are asking for full or partial repayment instead of allowing the short sale more and more often. There needs to be a way to give a short sale the same terminating effect a foreclosure has if necessary because there will be more and more homes that need to be sold due to speculators dumping them. Many times the second lenders are refusing to settle for a reasonable amount due to cash out refi or purchase money seconds. Or that the borrower can still make the payments but just no longer chooses to? Based on that question, your circumstance the bank is lately, not so quick to forgive you. Perhaps an arbitration board can be assembled and can review the files and demand the lenders perform case by case and force them to cram down and accept the settlements, right now they are blowing good deals apart because no one can force them to do anything. In a foreclosures a person it seems, can just walk away and let the home foreclose and all bets and debts are off. That leaves foreclosures to only the REO agents and the profiteers, not good for anyone but them.

To you homeowners who want to stay in your home and just want to make it affordable, my freind and associate Mr. Kevin Hardin and his team at Mortgage Mediation Group have assembled a program called a HEFI. Home Equity Fractional Interest. Their site is www.equidebtsolutions.com it offers principal mortgage reduction to the homes current value and offers the lender(s) a shared interest in the appreciation in the home. It is a novel concept at a minimal price and seems quite a good solution to a very bad situation that is mounting in many primary homes. Let them know I sent you!

For years I have served as the President for my HOA. Some people love you and still others, will hate you. I live in a resort where not only is there my association but there is a master association as well.

The resort over the course of ten years has overly watered the grass on their side of the fence and all but destroyed it. They recently sent my group a threatening letter saying we are to foot the bill for the repairs of the fence they destroyed, to the tune of almost 10 grand.

Being a REALTOR and the President, I know my ccnrs better than the people who wrote them. There is no way we are paying for a wall that a for profit organization destroyed all on their own. I have two members on the board right now who, well lets just say if they had fought in WW2 we would be speaking German in this country today. So not only do I have to worry about the master and their collective B.S. I have to worry about the two of the four other members who 'serve" with me on the board.

My point is this, if you do not like what your HOA is doing, get involved and serve. Luckily for my community it is not in my DNA to be bullied by big corporations or anyone for that matter, who think they can bend the rules and the law into their favor, I say 'fix your own damn wall!"

Can you be too close to a listing? I recently found out an old friend and client who I literally "willed" their home into a closed escrow because they wanted it sooo badly in 03 was now in trouble. Well fast forward six years later.

The wife called me and advised me that they were divorcing and what could be done about the house? I spent hours and hours on the phone with them in September counseling them separately on what to do, plans were hatched and scrapped over and over. They decided to try a loan mod since the husband wanted to remain in the home or they would have me short sell it.

I checked in the mls to see what it would appraise for about a week ago so I could advise my clients how things were looking. It was under contract and listed with another agent, not only that but the husband had bought another house in the West valley.

I felt betrayed, I was truly upset after all I had gotten them into the home ownership driver seat in the first place right? I advised them how to do exactly what they did and they did it with someone else! Then I realized, I do not need to list and sell every client's home in the valley. I am glad he was able to buy a home and I am glad his wife found a suitable rental. In my profession often we give away things for free, albeit advice, support or help of some sort.

I am glad I was able to be there for them in the time they needed me and who knows, maybe the spirit of giving is awakening in all of us?

Veterans Day Blog;

Today not only did I have the pleasure of attending the signing a first time home buyers purchase, but today it was on Veteran's day and this person is a disabled gulf war veteran. I cannot tell you how happy I feel for her and her family, I am honored to have been her Realtor. How fitting it seems to me that she sign for her new home on this day. Happy Veterans Day & God Bless

I found my self telling a colleague today that if Realtor's ran the world we would be in a much better place, and by Realtors I meant of course, me. In real estate sales it is cut and dry you sell and you swim and if not, you sink.

As a practitioner it is my job to assist clients to buy, rent or sell their homes and in this market you have to be on top of your game if you intend to survive.

The sales process can be tough, but it does not have to frantic or hostile unless that is what they are bringing to the table, then you can use it to yours and your client's advantage.

It is November and for those of us who like the Fall..We made it! Ok whats going on with housing? Are bank Mods working? Do any of them go past the "trial period"? I agree with many industry insiders, we need to consider principal reduction as a more vialble solution to fixing upside down houses. In most loan mods, the borrower still winds up losing the house or breaking the agreement because they are still upside down and more importantly, they are and were bad credit risks in the first place.

Ok I know, I seem to Golf quite a bit. If it is any help at all, I spend twice as much time selling homes. FYI I am shooting in the high 80's, early 90's and my closing ratio is even higher.

This last Monday my friends and I played Vistal located at South Mountain. I almost bought a home there before I bought at the Legacy. It was in wondeful condition and wow what views it afforded us. Homes along the Baseline corridor run anywhere from 150K to 1 Million and more.

I love living on the South side, sure it is not the Biltmore or North Scottsdale but you know what, I pay 1/3 of the taxes that they do. Property values sure have taken a hit but we are climbing out one rung at a time. When the wind comes whipping off South Mountain it is quite spectacular and of course the mountain views are just beautiful.

If you have any questions about South Phoenix, the housing market in general or what club you should, use just let me know!

I saw this amazing Tuscan/ Mediteranian styled Home along Camelback Golf Club in Paradise Valley Arizona on Thursday while golfing it with a friend. This beauty was sitting on the #16 fairway of the Indian Bend Course and was at least 12,000 sqft. it could as large as 19K. The exterior coloring is the same color I helped to approve in my home community along with a wide spectrum of other available custom colors that are so abundant in higher end communities. The next picture is of me and Dr. B!