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Bambi
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Posted: Mon Jan 12th, 2009 03:49 pm |
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Builders Cut Quality, Spark Home-Value Fears
38 commentsby Chelsea Schneider - Jan. 12, 2009 12:00 AM
The Arizona Republic
Megan Foster didn't foresee the changes coming to her southeastern Gilbert neighborhood when she closed on her house in February.
The prices of the houses in Freeman Farms used to begin in the $300,000s. But the deteriorating economy prompted builder Fulton Homes to introduce cheaper models.
The new houses are less colorful, finished in a different stucco and aren't as tall......
http://www.azcentral.com/news/articles/2009/01/12/20090112smallerhomes0112.html
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Bambi
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Posted: Fri Jan 9th, 2009 02:31 pm |
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I am very thankful he has resigned. He is NOT a business man and doesn't see Realtors as business people. IMO he has failed the Realtors miserably. I hope Ms. Brewer will pick a better representative of our needs. He has a very low approval rating.
This is a very important position and reflects on the housing industry in a big way, so the next appointee is critical to our needs.
All the above statements are an opinion of this poster.
************** LATE BREAKING NEWS*************
Real Estate Commissioner Sam Wercinski has notified Governor Napolitano of his intent to resign. Read his letter at http://www.azre.gov.
Below is his letter of gratitude to the Public and Industry.
January 8th, 2009
Dear Friends,
It has been a great honor to serve Arizona as your Real Estate Commissioner. It is with mixed emotions that I tell you that my final day as Commissioner will be effective upon Governor Napolitano’s resignation. Should Secretary of State Brewer, upon becoming Governor, wish me to assist the incoming Commissioner during a transition period, I would be pleased to do so. I shall remain available to the new administration as requested.
The ADRE team remains committed to Protecting the Public by offering the same exemplary service you have come to experience during my term. Our success is a testament to the partnerships formed between the Three Entities: The Public, The Industry and The Department. By Promoting Mutual Respect, collectively, we created a new foundation to advance practical and sound real estate policy in our growing state. Please commit yourself to fostering this perspective so we can continue to empower Arizona and emerge from these challenging times as a stronger community.
As you may know, the ADRE Spring 2009 Community Outreach and Education program has been scheduled for February and March. I will complete this tour as a guest speaker with schools who chose to partner with ADRE in offering the program. The COE has been approved for three credits of Commissioner’s Standards and information is available at AZRE.gov.
I wish you and the incoming Commissioner great success. Please stay in touch with me through email at Sam@SamWercinski.com or via Facebook.com. If you send me your contact information, I would enjoy visiting with you as I continue to travel around Arizona.
Gratefully and with Sincerest Respect,
[Sam Wercinski]
Arizona’s Real Estate Commissioner
January 2007 – January 2009
Last edited on Fri Jan 9th, 2009 02:39 pm by
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Bambi
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Posted: Fri Jan 9th, 2009 02:25 pm |
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Here is the Letter I am sending and who I am sending it to.
Bambi Sandquist
31951 N THOMPSON RD , QUEEN CREEK, Arizona 85242
January 09, 2009 09:23 AM
Senator Jon Kyl
U.S. Senate
730 Hart Senate Office Building
Washington, DC 20510-0001
Subject: Include Housing in the Recovery and Reinvestment Act
Dear Senator Kyl,
Congress did a good thing in 2008 when it enacted the $7500 first-time homebuyer tax credit. Unfortunately, the tax credit is not generating the stimulus that either Realtors or legislators had expected. In our area, we are finding that prospective homebuyers simply see no incentive effect in a tax benefit that will have to be paid back over time. At a time when people are trying to minimize their debt loads, the tax credit is perceived as simply adding to their debt, not as providing a benefit.
A further challenge with the repayment feature is that there is literally no one who can explain the mechanics of how the credit will be paid back. No other tax credit available to individuals must be paid back. Thus, there is no precedent that would suggest a model for how taxpayers would make the payment. As the repayments will not commence until 2010, the IRS has not yet provided guidance. Thus, Realtors can provide no explanation to prospective purchasers who are reluctant to undertake a tax obligation they don't understand.
The NATIONAL ASSOCIATION OF REALTORS (NAR) believes that the credit would provide a more beneficial stimulus if the repayment requirement were eliminated. In addition, the credit should be available for all purchases of a principal residence and not restricted solely to first-time homebuyers. It should also be extended through December 31, 2009.
NAR's recently-released Pending Home Sales Index report for November 2008 showed the greatest decline in pending sales transactions since NAR began tracking this market segment in 2001. (The Pending Home Sales Index is based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed at settlement.) This suggests that the marketplace has not yet responded to this tax incentive. This data underscores the pressures in the housing market. Presently, the inventory of available houses available for purchase is more than three times its usual level.
I urge you to include a provision in the upcoming stimulus package to eliminate the repayment feature of the tax credit, to extend the credit to all purchasers of a principal residence and to make the credit available through December 31, 2009.
Sincerely,
Bambi Sandquist
31951 N THOMPSON RD
QUEEN CREEK, Arizona 85242
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Bambi
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Posted: Fri Jan 9th, 2009 02:19 pm |
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The First Key to Unlock the Housing Crisis
The keys to unlock the housing crisis are in the hands of Congress. REALTORS have spent the last three months educating Congress on NAR's Four Point Housing Stimulus Plan to grow our economy, spur home buying, encourage lending and curb foreclosures. Today we need your help in handing Congress the first key -- the $7500 Homebuyer Tax Credit.
Over the next week, the critical work in forging one key component of the new stimulus bill will begin in Committees that govern economic and financial matters.
As a constituent of the select few Congressmen who serve on one of these powerful committees, you are being called upon to help ensure the Homebuyer Tax Credit is included in the larger economic stimulus bill on behalf of all REALTORS. Please don't let them down. Let your elected official hear from you today on how important this is to unlock the housing market.
Send a letter your elected official that serves on one of the following committee(s):
House Committee on Ways and Means
Senate Committee on Finance
Below is the sample letter:
Subject: Include Housing in the Recovery and Reinvestment Act
Dear [decision maker name automatically inserted here],
Congress did a good thing in 2008 when it enacted the $7500 first-time homebuyer tax credit. Unfortunately, the tax credit is not generating the stimulus that either Realtors or legislators had expected. In our area, we are finding that prospective homebuyers simply see no incentive effect in a tax benefit that will have to be paid back over time. At a time when people are trying to minimize their debt loads, the tax credit is perceived as simply adding to their debt, not as providing a benefit.
A further challenge with the repayment feature is that there is literally no one who can explain the mechanics of how the credit will be paid back. No other tax credit available to individuals must be paid back. Thus, there is no precedent that would suggest a model for how taxpayers would make the payment. As the repayments will not commence until 2010, the IRS has not yet provided guidance. Thus, Realtors can provide no explanation to prospective purchasers who are reluctant to undertake a tax obligation they don't understand.
The NATIONAL ASSOCIATION OF REALTORS (NAR) believes that the credit would provide a more beneficial stimulus if the repayment requirement were eliminated. In addition, the credit should be available for all purchases of a principal residence and not restricted solely to first-time homebuyers. It should also be extended through December 31, 2009.
NAR's recently-released Pending Home Sales Index report for November 2008 showed the greatest decline in pending sales transactions since NAR began tracking this market segment in 2001. (The Pending Home Sales Index is based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed at settlement.) This suggests that the marketplace has not yet responded to this tax incentive. This data underscores the pressures in the housing market. Presently, the inventory of available houses available for purchase is more than three times its usual level.
I urge you to include a provision in the upcoming stimulus package to eliminate the repayment feature of the tax credit, to extend the credit to all purchasers of a principal residence and to make the credit available through December 31, 2009.
Last edited on Fri Jan 9th, 2009 02:26 pm by
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Bambi
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Posted: Fri Dec 19th, 2008 08:02 pm |
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Go getem Charney. Good for her, revealing the secrets of those who forget.
Arizona Statutes of Limitation
Written contracts: 6 years, runs from date creditor could have sued account.
Oral debts, stated or opens accounts: 3 years.
Actions for fraud or mistake: 3 years from the date of the discovery of the fraud or mistake.
Actions involving fiduciary bonds, out of state instruments and foreign judgments: 4 years. NOTE: Arizona applies its own statute of limitations to foreign judgments rather than that of the state that originally rendered the judgment whether the judgment is being domesticated under the Uniform Enforcement of Foreign Judgments Act or pursuant to a separate action on the foreign judgment.
An Arizona judgment must be renewed within five years of the date of the judgment.
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2 cents
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Posted: Fri Dec 19th, 2008 07:19 pm |
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Just an interesting story that may be of some help somewhere.
2
 MSNBC.com
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'Angel' of foreclosure defense bedevils lenders
Florida attorney trains hundreds of others to help troubled borrowers
By Mike Stuckey
Senior news editor
updated 4:39 a.m. MT, Fri., Dec. 19, 2008
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JACKSONVILLE, Fla. - Talking about what she sees as one of America’s darkest hours, attorney April Charney uses some pretty colorful language.
“You ever look into a place where snakes hang out?” she asks in the middle of a conversation about the loan officers, appraisers, investment bankers, attorneys and others that she believes are responsible for the nation’s worsening financial crisis. “That’s what I see here. They’re writhing and oozing and morphing into creepy stuff with slime all over it.”
Then in her quiet, gentle drawl — the kind of voice that could get you invited to afternoon drinks on the finest porches in South Florida, where she grew up — she leans forward and says quite earnestly, “Not to discredit snakes or anything.”
Charney, a lawyer with the Jacksonville Area Legal Aid agency, is quickly developing a national reputation as a champion of homeowners facing foreclosure and a serious adversary for those attempting to take possession of those homes. Her encyclopedic knowledge of contract law, debt-collection practice, securitized mortgages, the trusts that hold them and the agreements that govern the trusts have put her at the forefront of the rapidly expanding specialty of foreclosure defense.
While carrying her own load of 70 to 100 foreclosure cases as a legal aid attorney, Charney, 51, also has become one of the nation’s top trainers of other lawyers eager to learn how to serve the growing clientele spawned by America’s mortgage meltdown.
About 1,500 lawyers have attended her daylong classes on foreclosure law so far, 80 to 200 at a time. She has taught in Ohio, California, Minnesota, South Carolina, Missouri and throughout Florida. She offers the classes at cost with the help of local bar associations and aid groups and requires that all students perform 20 hours of pro bono legal work in their communities.
A trail of trouble
Charney said her crusade was born out of experience. Over and over again, she said, in her cases and those of other attorneys she met, she found sloppiness, fraud and outright criminality in the nation’s mortgage lending industry. Regardless of why her clients have been unable to pay their mortgages, she maintains that nobody deserves to lose a home to the unethical and illegal foreclosure procedures that she claims are now being used by many banks and loan servicers.
Her work has earned her the enmity of many a lender and high praise from consumer advocates. “She is definitely a woman who walks the talk and carries a big stick that will crush those who defy consumer laws,” wrote Moe Bedard, president of Loan Safe Solutions, a company that tries to help homeowners prevent foreclosure.
The Mortgage Bankers Association, the trade group that represents 2,400 companies from all sectors of real estate finance, did not respond to msnbc.com’s invitation to comment about Charney and her sweeping indictment of the industry and its business practices. And the American Bankers Association, unfamiliar with her work, had no comment.
But clients like Vickie Lewis of Jacksonville, for whom Charney has staved off foreclosure for more than four years, adore her. “She’s an angel,” said Lewis. “Without Miss Charney, I would have been out a long time ago.”
Long days, even on 'vacation'
Charney pursues her calling with energy and enthusiasm. On a recent “vacation day,” she met for hours with a reporter, then saw clients until 8:30 p.m. in her downtown Jacksonville office, which is so crammed with case files, law books and other materials she hasn’t been able to shut the door or hold a meeting there for quite some time.
She has no sacred cows, and is currently taking on the Jacksonville area Habitat for Humanity, a darling of many liberal social activists, over construction quality and other issues.
Charney, separated from her husband, is often at her desk preparing briefs after midnight but manages to maintain close contact with a daughter, 25, a third-year law student, and a son, 23, who received a degree in anthropology last year and is now interning with the U.S. Park Service. She prefers sweaters and jeans to suits, and dreams about being able to spend more time running rivers and hiking wilderness trails.
A University of Miami law school graduate who spent years in private practice in Arkansas and worked in other legal aid offices before coming to Jacksonville four years ago, Charney said she became an expert on lending law when her caseload of foreclosures increased and she began to notice a number of disturbing trends that have yielded her key defense strategies.
First, because of the way mortgages have been securitized, it’s often unclear who actually owns the debt, she said. “What we see is that systematically, the originating lenders only pledged these loans and didn’t actually transfer them” to the trusts that are supposed to hold them and issue the securities, she explained.
But only the true debt owner has the legal standing to be a plaintiff in a foreclosure, she continued. “That’s first-year law school stuff. If you’re Joe and the debt doesn’t belong to you, it belongs to Marjorie, then Marjorie better be in court, not Joe. Don’t come in as Joe and tell me you have the right to be there when you know full well you don’t.”
Sketchy documentation
Yet, time and again, loan servicers and others have sought plaintiff status, often by using affidavits stating that the actual notes had been lost, she said. “I’ve seen paperwork filed by lawyers saying, ‘We anticipate assignment’” of the debt, she said with a scoff.
And the loan originators can’t appear in court and claim the right to foreclose because they would be in violation of securities laws for not transferring the loan to the trust when they were supposed to, she said.
Making an issue out of the actual ownership of the securitized title might strike some as a shameless stalling tactic aimed at abetting a debtor who, after all, owes the money. But Charney said that if such basic legalities aren’t adhered to, a homeowner could pay his or her way out of a foreclosure jam only to wind up in another when a new plaintiff emerges claiming to own the debt. She described cases in which homeowners have been sued for foreclosure by two different trusts, each claiming they owned their house, and cases where trusts have been sent documents on the same case by two different servicers.
Charney has a number of other defenses that focus on other sloppy and illegal practices by lenders and mortgage servicers. Some homeowners in foreclosure, such as those with FHA-insured loans like her client Vickie Lewis, were “entitled to very special default case management, and they didn’t get it,” she said. These people might not be in foreclosure if they had, she said.
Trouble is in the stock
The FHA loan program exists to enable low- and moderate-income Americans, including many with poor credit, to buy homes. FHA anticipates that borrowers in its programs will have more difficulty staying current on their loans than so-called prime borrowers, and therefore requires lenders to offer a range of options to troubled clients.
“I think that they are entitled to relief" because they didn't get the help they were supposed to, Charney said.
Still other clients wind up in foreclosure because they were the victims of predatory lending practices and outright fraud when they got their loans, Charney said. If that can be shown in court, the foreclosure may be tossed out.
Charney prefers to settle cases, often using the flaws she exposes in debt ownership and loan servicing to gain reworked, more manageable mortgages for her clients.
“Where we were settling cases at 7 percent interest, I’m now wanting to settle them at 4 percent interest or 3 percent interest,” she said. “I’m now settling for tenants where the lender, in lieu of rent, has them maintain the property. You have to adjust to the circumstances.”
Charney said that in a number of her cases, once there is no longer an ability for the loan servicer to profit, the foreclosure “just goes to sleep, and unless I’m going to pursue it, nobody’s setting hearings, nobody’s pursuing anything to get it to trial.”
After five years, which is the statute of limitations to enforce a contract in Florida, she can try to help her clients own their homes mortgage-free, Charney said. The first opportunity for her to help clients do that may arise next year.
Most cases remain in limbo
And that legal limbo is where the lion’s share of her cases stand now, Charney said. So far this year, she has achieved two “workouts” and lost two cases. “Many, many, many” of the rest are in sleep mode or getting a single filing each year by plaintiffs’ attorneys just to keep them alive.
Bert Ely, a longtime analyst of the financial services industry and a scholar at the conservative Cato Institute who was among the first to predict the S&L scandal of the 1980s, said lenders may detest tactics like the ones Charney employs, but “this is well-established in bankruptcy practice, that you have to properly perfect the security interest, and if you haven’t, you’re screwed. … Debtors’ lawyers immediately start looking for flaws in how the debt is protected. Creditor attorneys always worry about this.”
“It kind of boggles my mind that this is even an issue” in the nation’s current mortgage mess, he said. “I don’t understand how lawyers let this happen in the first place.” Mortgage-lending and servicing is “a matter of dotting the I’s and crossing the T’s. … That’s what puts the discipline in the process.”
© 2008 msnbc.com Reprints
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Bambi
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Posted: Wed Dec 17th, 2008 06:09 pm |
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from my lender friend, Bud Levy:
We didn't expect it to happen so quickly but we are NOW in the 4% interest range. WOW!!
The Feds lowered their inter-banking rate yesterday by 3/4% and they made particular comment on their continuation to purchase Mortgage Backed Securities (MBS). The demand for MBS's rose dramatically and rates dropped considerably.
RIGHT NOW IS THE TIME!!
Do you have equity in your home and can go full doc? - REFI NOW!!
Planning to purchase? BUY NOW!!
Can rates go lower - Maybe. But no matter what you do don't pass up this opportunity to LOCK-IN on these once in a lifetime rates!
30-Year Fixed Rate: 4.8%
Last edited on Wed Dec 17th, 2008 06:14 pm by
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Bambi
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Posted: Wed Dec 17th, 2008 05:41 pm |
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[Important Information Regarding LandAmerica Title Insurance]
Due to the recent bankruptcy filing by LandAmerica’s holding company and the related credit rating agency downgrades of the LandAmerica subsidiaries, American Mortgage Specialists, Inc. will no longer accept title commitments, title insurance policies, or Insured Closing Protection Letters from the following:
• Land Title Insurance Company
• LandAmerica NJ Title Company
• Title Insurance Company of America
Subject to evidence of reinsurance from Fidelity National Title or its subsidiary, Chicago Title, at this time American Mortgage Specialists, Inc. will accept title commitments, title insurance, and Insured Closing Protection Letters from the following LandAmerica subsidiaries:
• Lawyers Title Insurance Corporation
• Commonwealth Land Title Insurance Company
• United Capital Title Insurance Company
[size=
American Mortgage Specialists, Inc. will continue to monitor the status of the proposed purchase of LandAmerica subsidiaries by Fidelity National Financial, Inc. and will advise if these requirements change.]
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Bambi
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Posted: Wed Dec 17th, 2008 02:49 pm |
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The National Association of Realtors is sending a four point plan to Congress, to ask them to integrate this into their solutions for us. The Banks under the TARP money given to them by Paulson, were supposed to lend the money out but they are hording the money. We are trying ways to stimulate these banks to loan out the taxpayers money to qualified borrowers and to leave the real estate business to those most qualified. To hand over a family's life to a former Jack in the Box unqualified employee with little to no training, to be their loan adviser is ludicrous and only sets the stage for failure. Hopefully this will give them some direction. It appears that with the key interest rate reduced to 0% by the Feds, and still no great activity, that they will have to buy up these troubled mortgages to get this ball rolling. Just my take.
Here's the 4 Point Plan:
- Make the $7500 first-time homebuyer tax credit available to all buyers and eliminate repayment requirements. The credit's limited availability and repayment requirement severely limit the credit's use and effectiveness.
- Make the 2008 FHA, Fannie Mae and Freddie Mac loan limits permanent. New rules for 2009 will reduce them. Now is not the time to limit mortgage affordability.
- Get the Treasury relief program back on track and target more funds to mortgage relief. Create a federal mortgage interest buy-down program to make below-market rates available and stabilize home prices.
- Permanently bar banks from engaging in real estate brokerage and management. The banks have proved they have enough to do to simply manage the loan process. Banks should not manage home sales and purchases.
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Bambi
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Posted: Tue Dec 16th, 2008 09:45 pm |
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I've had some people ask if the lender can come after them for a deficiency judgment, after the short sale and/or foreclosure. Here is an attorney's take on it.
Real Estate Mortgage Anti-deficiency Laws
Arizona has two laws which prevent certain lenders from seeking a "deficiency judgment" for certain types of residential loans. The laws are commonly known as "Anti-Deficiency Laws" and may allow you as a real estate owner and debtor to walk away from a property without owing a deficiency judgment amount.
If your house is secured by a Deed of Trust, generally then the lender may not recover any deficiency if (1) the property is 2.5 acres or less; (2) it is used for a single one family one family residence and (3) is sold pursuant to the Trustee's power of sale. In the unlikely circumstance that the home is secured by a mortgage (instead of a Deed of Trust) the same criteria applies. There is one wrinkle in the case of a mortgage or a deed of trust and that involves a home owner who causes a reduction in value of the property by not taking care of it or damaging it. Commercial properties and vacant land are not protected by these laws. VA loans and FHA loans have special considerations and may not be covered by these statutes because of federal law.
xxxxxxxxxxxxxxxxxxxxxx
So bottom line is if the loan was used to purchase the home (purchase money loan) then you are probably not subject to a deficiency judgement caused by a short sale or foreclosure. Always check with an attorney first. Also, my understanding is that it can be owner occupied or non owner occupied, but if you are ripping out the cabinets and stealing the appliances, etc. on your way out, then the lender may have grounds to come after you.
Last edited on Tue Dec 16th, 2008 09:48 pm by
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Bambi
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Posted: Tue Dec 9th, 2008 10:29 pm |
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From my friend, Bud Levy.
Are we going to see rates in the 4% range again? If the Feds continue to purchase mortgage backed securities, which they have finally started doing, the investor's confidence in that instrument will continue to rise and rates will continue to fall. We've seen rate come down to the mid 5's during the last 10 days which is a huge change already! All of this is designed to spur home purchases and I'm sure we'll see a large refi bump for those that can qualify and have a reasonable equity position in their home.
Home sales have declined in our area over the last 30 days while home listings have been flat. That raises the absorption rate again. Hopefully the rate reductions will help.
FHA loan limits are going back down to $271,050 after the new year. We hoped they would remain in the $356K area but that is obviously not going to change at this point. All loans over the new limit must close by the end of this month. Some Lenders are cutting off submissions at the end of this week.
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azcats_01
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Posted: Thu Nov 27th, 2008 07:46 pm |
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http://www.nytimes.com/2008/11/26/business/economy/26fed.html
U.S. Details $800 Billion Loan Plans
The Fed and the Treasury signaled that they would print as much money as needed to revive the banking system.
By EDMUND L. ANDREWS
November 26, 2008
WASHINGTON — The Federal Reserve and the Treasury announced $800 billion in new lending programs on Tuesday, sending a message that they would print as much money as needed to revive the nation’s crippled banking system.
The gargantuan efforts — one to finance loans for consumers, and a bigger one to push down home mortgage rates — were the latest but probably not the last of the federal government’s initiatives to absorb the shocks that began with losses on subprime mortgages and have spread to every corner of the economy.
In the last year, the government has assumed about $7.8 trillion in direct and indirect financial obligations. That is equal to about half the size of the nation’s entire economy and far eclipses the $700 billion that Congress authorized for the Treasury’s financial rescue plan.
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Bambi
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Posted: Wed Nov 26th, 2008 03:36 pm |
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Home Prices in Record Decline
By Les Christie, CNNMoney.com
Nov 25th, 2008
Case-Shiller survey shows 16.6% annual decline in summer months as housing picture continues to deteriorate.
NEW YORK (CNNMoney.com) -- The home price plunge stayed on a record pace this summer, according to a widely watched gauge of national real estate markets released Tuesday.
The S&P Case-Shiller Home Price national index recorded a 16.6% decline in the third quarter compared with the same period a year ago. That eclipsed the previous record of 15.1% set during the second quarter.
Prices in Case-Shiller's separate index of 10 major cities fell a record 18.6%, while its 20-city index dropped a record 17.4%.
With foreclosures soaring at record rates, the economic picture dimming and job losses ramping up, all the elements were in place to push prices lower.
"The turmoil in the financial markets is placing further downward pressure on a housing market already weakened by its own fundamentals." said David Blitzer, Standard & Poor's spokesman for the indexes, in a press release. "All three aggregate indices and 13 of the 20 metro areas are reporting new record rates of decline. . . . Prices are back to where they were in early 2004."
The 10-city index is now 23.4% off its peak price, which came in June 2006; the 20-city index is down 21.8% from its July 2006 high and the national index has fallen 21% since the third quarter of 2006.
MORE AT CNNMONEY.COMHome prices in the 10-city index have fallen for 26 consecutive months. The decline has broadened over the past 12 months, with prices dropping in every city of the 20-city index during September.
In the weakest market, Phoenix, the 12-month loss came to 31.9%. Las Vegas prices plummeted 31.3% and San Francisco recorded a 29.5% decline. The best performing markets, Dallas and Charlotte, N.C., still posted drops - 2.7% in Dallas and 3.5% in Charlotte.
With San Francisco and Las Vegas, the other members of the 10-city index are: Miami, down 28.4% year-over-year; Los Angeles, down 27.6%; San Diego, down 26.3%; Washington, down 17%; Chicago, down 10.1%; New York, down 7.3%; Boston, down 5.7%; and Denver, down 5.4%.
In addition to Phoenix, Dallas, Charlotte and the cities in the 10-city index, the 20-city index is made up of: Detroit, down 18.6%; Tampa, Fla., down 18.5%; Minneapolis, down 14%; Seattle, down 9.8%; Atlanta, down 9.5%; Portland, Ore., down 8.6%; and Cleveland, down 6.4%.
Foreclosures continue to take a heavy toll, with sales in some cities dominated by properties repossessed by banks and then put back on the market, often at bargain prices. In Las Vegas and Cleveland, for example, about half of all homes for sale are bank-owned properties, according to the real estate Web site, Trulia.com.
"Foreclosures are clearly a part of the market now," said Blitzer.
He added that the national index price trends tend to be more moderate because they encompass many more exurban and rural areas, where, in many cases, home prices never skyrocketed as they did in some of the hotter, urban markets.
Karl Case, the Wellesley economics professor who is the Case in Case-Shiller, said during a news conference about the latest index report that he would hesitate to put a number on how much further prices could fall, but the increasing job losses will surely worsen the situation.
"There's no cushion against unemployment," he said.
And Pat Newport, an economist with Global Insight, pointed out that the latest numbers don't even capture the impact of some of the events of the past couple of months.
"The real economy took a sharp turn for the worse towards the end of the third quarter," he said. "Since then, housing permits are down, the National Association of Home Builders index of activity dropped to a record low in November and purchase loan applications were down 15%. That's telling us the housing market has worsened a lot."
Add to that a jumping unemployment rate and more bank woes and it adds up to lousy home price numbers for months to come, according to Newport.
"As bad as the latest Case-Shiller numbers appear to be, they are bound to get a lot worse," he said.
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Bambi
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Posted: Tue Nov 25th, 2008 03:16 pm |
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These prices are "new" home prices. They still can't compete with the short sales. A lender recently took $15k less for a bid on a home as it was all cash on the spot. Does that reflect the true value? Nope. We're still around $50. a ft. for short sales because of the nature of the transactions....get them for as little as you can possibly get them for with the best financing...cash. But, they are not NEW. Many are absent of cabinets and other fixtures.
Pulte in Anthem is opening up some models for around $109k and they'll get it, because of the lifestyle there. They are still selling new homes there and short sales.....choices. Also, you can get into a new home alot quicker with less cash than most short sales and you have warranties. These short sales take months to close and you're not sure of what you're getting. And if there is a second mtg. on the sale, it could be longer or not happen at all. Most buying the shorts are investors young and old, foreigners and parents for their kids, taking money from their 401k's.
Once the new homes start selling again and establish some baselines and the shorts run out of steam, then we will be back on track.
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pipeman
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Posted: Mon Nov 24th, 2008 04:08 am |
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Bambi wrote: Look at the Prices they are selling New Homes in Magma Ranch today. How much further backwards can we go?
Bambi, is this square footage price not going up? The way I see it is this home is selling for approx: $83.00 a square foot, as the home is only 954 sq ft. This is better than the recent past per sqaure foot price.
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Bambi
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Posted: Sat Nov 22nd, 2008 02:55 pm |
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Look at the Prices they are selling New Homes in Magma Ranch today. How much further backwards can we go?
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starleen
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Posted: Sat Nov 22nd, 2008 05:52 am |
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Gee. This topic went way south, didn't it. Flynn - get a grip.
I just wanted to add a personal note - I rented a house in Pecan Creek for a while a few years ago, and almost bought it for $175K from the investor. I noticed today it is for sale at $67K. Wow. Gladly, the restrictions include owner occupancy. I think the key is to keep investors out of the market.
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ShannonFlynn
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Posted: Tue Nov 18th, 2008 11:15 am |
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gk wrote: If we don't revolt, it will be like it was in France, during Marie Anotinette's day and King Louie XVI, as they and the rich indulged in the riches and revenues and the people were ignored, and thrown the scraps and leftovers....the French Revolution. It was the people who said "enough is enough"....share your wealth or off with your head. The nobles or filthy rich, balked at the financial reforms, even though France was in a financial crisis.....so the people took over.
Bambi, I am in complete agreement, unfortunatley Americans today do not have the will, nor the independent drive to do anything about anything. Americans have been hypnotised by sports, until they are turned into fanatics, hypnotised by overly ignorant and mindless TV programs, the news media all reporting the exact same thing. The American people have been stuffed so full of this mindless crap that they don't take the time to read, learn about issues or even think critically.
The average American has become a retarded sheep, in the fold of the Corporate and the government pen
America has been dumbed down to the lowest common denominator. Remember.........a stupid people is an easily governed people!!!
I could not have said it any better myself. Our kids are very rearly in front of the tv. If they are I'm with them. OR there is a vhs or dvd that is playing. I'm sick of all the crap they show. Parents must be active, must educate. My hubby is a teacher 17 now and the stuff he comes home and says. I am so blessed to be able to home school our girls.
Last edited on Tue Nov 18th, 2008 11:19 am by ShannonFlynn
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Bambi
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Posted: Mon Nov 17th, 2008 10:22 pm |
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This information came today from Bud Levy, Mortgage consultant.
The financial markets are CONSTANTLY changing and so are the Mortgage Markets. Stocks bounce like crazy and mortgage rates do also. Right now rates are much more reasonable than a week ago. I wish we knew what tomorrow will bring!
Unless the government intervenes one more time, Big FHA changes are coming after the first of the year. FHA loan limits are now $346,250 for a single family home and they are going DOWN to $271,050. Up Front FHA Mortgage Insurance is going from 3% to 3.5%. So, if you have a buyer for an FHA mortgage NOW is the time to purchase. Loans have to close by Dec 31, 2008 otherwise the 2009 FHA terms & limits go into effect. Don't Get Caught in a Delayed Closing and loose your DEAL!!!
Loan Modifications are BOOMING! We're seeing some GREAT Modifications taking place. Just had a loan rate dropped to 5.125% and another where the principal amount was dropped by $100K. Not all Lenders cooperate very well but most realize these need to get done or they'll get the property back, which they really don't want.
You can get a 30 yr. fixed rate today at 6.1%. 15 year at 5.8%
Last edited on Mon Nov 17th, 2008 10:23 pm by
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Bambi
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Posted: Wed Nov 12th, 2008 10:30 pm |
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FEMA] to End the "flood" Web Map Service (WMS)
FEMA provides access to the National Flood Hazard Layer (NFHL) through a Web Map Service named "flood", which displays flood hazard areas with blue map symbols. FEMA's customers use this service directly in Geographic Information System (GIS) and computer mapping software, and through old versions of the "FEMA NFHL" Google Earth (tm) utility file (kmz file).
On November 30, 2008, FEMA will end the "flood" WMS.
To avoid a gap in service, if you use an application that displays flood hazard areas with blue map symbols and
You use the "FEMA NFHL" Google Earth (tm) utility (kmz) files, please upgrade to the new version of the "FEMA NFHL" kmz file.
- Information about the "NFHL" WMS and "FEMA NFHL" Google Earth (tm) utility (kmz) file is available in the NFHL section of the FEMA Map Service Center web page at http://msc.fema.gov.
If you currently use an application that displays flood hazard areas with red map symbols, then you are already using the new services and may disregard this notice.
This notice does not apply to the online MapViewer - Web application.
In October, FEMA will modify the status map layers in the "flood" WMS to remind users to update their applications.
If you have questions about this change, please refer them to MIPhelp@mapmodteam.com . Please put the term "flood WMS" in the subject of the message.
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gk
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Posted: Fri Nov 7th, 2008 05:27 pm |
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If we don't revolt, it will be like it was in France, during Marie Anotinette's day and King Louie XVI, as they and the rich indulged in the riches and revenues and the people were ignored, and thrown the scraps and leftovers....the French Revolution. It was the people who said "enough is enough"....share your wealth or off with your head. The nobles or filthy rich, balked at the financial reforms, even though France was in a financial crisis.....so the people took over.
Bambi, I am in complete agreement, unfortunatley Americans today do not have the will, nor the independent drive to do anything about anything. Americans have been hypnotised by sports, until they are turned into fanatics, hypnotised by overly ignorant and mindless TV programs, the news media all reporting the exact same thing. The American people have been stuffed so full of this mindless crap that they don't take the time to read, learn about issues or even think critically.
The average American has become a retarded sheep, in the fold of the Corporate and the government pen
America has been dumbed down to the lowest common denominator. Remember.........a stupid people is an easily governed people!!!
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SanTanEvents
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Posted: Fri Nov 7th, 2008 04:59 pm |
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hmmmm... must of been a warning or something last time. I don't see other disciplinary actions.
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Bambi
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Posted: Fri Nov 7th, 2008 04:50 pm |
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SanTanEvents wrote: Bambi wrote:
This Alert is being distributed for the protection of the Public
On October 22], 2008, the Arizona Department of Real Estate issued a Cease and Desist Order against Dan E. Manley of Phoenix, Arizona and GoRenter.com, LLC. Sam Wercinski, Arizona’s Real Estate Commissioner emphasized “The purpose of our action is to protect consumers from this type of predatory practice being alleged which is illegal under Arizona statutes.” The Cease and Desist Order is a result of compelling evidence supporting allegations that GoRenter.com and Dan Manley engaged in advertising an illegal promotion as a means of securing new clients and customers.
Bambi, this is not the first time the Department has taken action against this guy. do you know the full details?
The entire Order is available to read via the ADRE public database at http://www.azre.gov or by clicking here and opening the disciplinary file on-line.
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SanTanEvents
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Posted: Fri Nov 7th, 2008 04:46 pm |
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Bambi wrote:
This Alert is being distributed for the protection of the Public
On October 22], 2008, the Arizona Department of Real Estate issued a Cease and Desist Order against Dan E. Manley of Phoenix, Arizona and GoRenter.com, LLC. Sam Wercinski, Arizona’s Real Estate Commissioner emphasized “The purpose of our action is to protect consumers from this type of predatory practice being alleged which is illegal under Arizona statutes.” The Cease and Desist Order is a result of compelling evidence supporting allegations that GoRenter.com and Dan Manley engaged in advertising an illegal promotion as a means of securing new clients and customers.
Bambi, this is not the first time the Department has taken action against this guy. do you know the full details?
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Bambi
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Posted: Fri Nov 7th, 2008 04:26 pm |
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This Alert is being distributed for the protection of the Public
On October 22], 2008, the Arizona Department of Real Estate issued a Cease and Desist Order against Dan E. Manley of Phoenix, Arizona and GoRenter.com, LLC. Sam Wercinski, Arizona’s Real Estate Commissioner emphasized “The purpose of our action is to protect consumers from this type of predatory practice being alleged which is illegal under Arizona statutes.” The Cease and Desist Order is a result of compelling evidence supporting allegations that GoRenter.com and Dan Manley engaged in advertising an illegal promotion as a means of securing new clients and customers.
Last edited on Fri Nov 7th, 2008 04:29 pm by
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whirlwinds
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Posted: Fri Oct 17th, 2008 09:44 pm |
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Bambi, stay strong on the local level. Sheriff Arpaio has endorsed Mr. Babeu and his plans so expect more of the same things in Pinal. Let's just get it over with: Babeu/Martyn on November 4! Come January, it will all be better for us. They told us it would be.
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Bambi
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Posted: Fri Oct 17th, 2008 07:10 pm |
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It's Time to get serious about our financial condition. So far, the only benefit realized by the current bailout is the upper eschalon, not mainstreet. Banks are still awaiting their orders from their bosses who may be in England, hunting for pheasant or the like, with their cute knickers and the latest fashion, as AIG Exec.s have done recently.
It's time the people decide what to do with OUR money. We cannot afford to wait for all this to trickle down to us on mainstreet. We don't have a huge credit line or a relationship that allows for special treatment.
Bush/Congress and the rest of them have forced us into Socialism, by default. Those of us who are without an income, will have to rely on the State, who is way in debt already, to support us at a poverty level existance. ...Welfare/Access.
Sheriff Joe Arpaio's budget allows for payment to consultants, who are basically former employees of the Dept., and are living on their retirement from taxpayers funds, plus the high consultant fees, from taxpayer funds. Unfair. Now, does he really need those consultants, or can't he cutback on some of his extravagances, including his Supersized Tank, or his huge office, or other perks he just doesn't need right now, including his nurse, Lisa?
If we don't revolt, it will be like it was in France, during Marie Anotinette's day and King Louie XVI, as they and the rich indulged in the riches and revenues and the people were ignored, and thrown the scraps and leftovers....the French Revolution. It was the people who said "enough is enough"....share your wealth or off with your head. The nobles or filthy rich, balked at the financial reforms, even though France was in a financial crisis.....so the people took over.
Here's another notice I was recently sent from my peers in the industry, that I am gnawing on......take a look.
Save the American Dream Plan
The banks on Wall Street got their bailout. Now, what about all of us in the housing industry and those who work on Main Street ?
We’re still hurting because the big Wall Street bailout did nothing to address the root cause of the housing crisis.
We need a real solution instead of a band-aid.
The Save the American Dream plan is the correct solution and it isn’t being heard in Washington because the people on Main Street – whom would be helped – aren’t donating millions of dollars to a particular political campaign, and therefore, have no economic representation in Washington .
For two reasons, it’s our responsibility as mortgage industry professionals to speak for those that have no voice and make Washington listen to the plan that will save struggling homeowners …and ourselves.
It’s our responsibility because we were a part of the problem (along with many others, including borrowers) and because we are the ones that have the industry knowledge and expertise to really do what needs to be done. We are in a unique position here to really solve this crisis.
Click here to join us in support of the Save the American Dream plan .
The Save the American Dream plan will empower those millions of Americans who because of foreclosure and financial chaos have been living out their worst nightmares and provide them with viable refinance options to wake up and restore their dream.
By providing millions of Americans with a refinance option as an alternative to foreclosure, we’ll in turn create a refinance boom within the industry.
The Save the American Dream plan will save Wall Street by lending Main Street a hand and will rescue the U.S. housing market in the process.
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Bambi
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Posted: Wed Sep 10th, 2008 03:24 pm |
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Fannie, Freddie & the Government really shook things up over the weekend. As you've heard, the Government basically took over those two GSE's which resulted in tremendously increasing the confidence in Mortgage Backed Securities. Sales of MBS's then sky rocketed and rates dropped like a rock. We're now back under 6% and they might even go lower. Who knows?
Get ready to lock at a moments notice if you want to cash in on these low rates. When rates drop so rapidly sometimes they can rise even faster. Right now it is all based on speculation in the marketplace and that can turn on a dime. Be prepared!!!
Bud Levy...lender rep.
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Bambi
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Posted: Sun Sep 7th, 2008 06:03 pm |
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Government seizes control over Freddie Mac and Fannie Mae.
WASHINGTON (AP) -- The Bush administration, acting to avert the potential for major financial turmoil, announced Sunday that the federal government was taking control of mortgage giants Fannie Mae and Freddie Mac.
Officials announced that the executives and board of directors of both institutions had been replaced. Herb Allison, a former vice chairman of Merrill Lynch, was selected to head Fannie Mae, and David Moffett, a former vice chairman of US Bancorp, was picked to head Freddie Mac.
Treasury Secretary Henry Paulson says the historic actions were being taken because "Fannie Mae and Freddie Mac are so large and so interwoven in our financial system that a failure of either of them would cause great turmoil in our financial markets here at home and around the globe."
The huge potential liabilities facing each company, as a result of soaring mortgage defaults, could cost taxpayers tens of billions of dollars, but Paulson stressed that the financial impacts if the two companies had been allowed to fail would be far more serious.
"A failure would affect the ability of Americans to get home loans, auto loans and other consumer credit and business finance," Paulson said.
Both companies were placed into a government conservatorship that will be run by the Federal Housing Finance Agency, the new agency created by Congress this summer to regulate Fannie and Freddie.
The Federal Reserve and other federal banking regulators said in a joint statement Sunday that "a limited number of smaller institutions" have significant holdings of common or preferred stock shares in Fannie and Freddie, and that regulators were "prepared to work with these institutions to develop capital-restoration plans."
The two companies had nearly $36 billion in preferred shares outstanding as of June 30, according to filings with the Securities and Exchange Commission.
Paulson said that it would be up to Congress and the next president to figure out the two companies' ultimate structure.
"There is a consensus today ... that they cannot continue in their current form," he said.
Paulson and James Lockhart, director of the Federal Housing Finance Agency, stressed that their actions were designed to strengthen the role of the two mortgage giants in supporting the nation's housing market. Both companies do that by buying mortgage loans from banks and packaging those loans into securities that they either hold or sell to U.S. and foreign investors.
The companies own or guarantee about $5 trillion in home loans, about half the nation's total.
Lockhart said that both Fannie and Freddie would be allowed to increase the size of their holdings of mortgage-backed securities to bolster the housing industry as it undergoes its worst downturn in decades.
Lockhart said in order to conserve about $2 billion in capital the dividend payments on both common and preferred stock would be eliminated. He said that all lobbying activities of both companies would stop immediately. Both companies over the years made extensive efforts to lobby members of Congress in an effort to keep the benefits they enjoyed as government-sponsored enterprises.
Both Paulson and Lockhart were careful not to blame Daniel Mudd, the CEO of Fannie Mae, or Freddie Mac CEO Richard Syron for the companies' current problems. While both men are being removed as the top executives, they have been asked to remain for an unspecified period to help with the transition.
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Bambi
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Posted: Fri Aug 29th, 2008 05:32 pm |
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Is this the end of the seller paid DPA programs?? Well, for now it is. Even though there is a Bill that might reinstate the seller paid DPA, congress cannot act quick enough to approve it before Oct 1st, which is when the current program is over. There are other forms of DPA programs that are NOT seller paid however they do not have much money in them and they are very restrictive.
There is still a little time to get those loans in before this gets away from us. Many Lenders had a submission cut-off date of Aug 15th. Most will accept submissions through the end of this week, Aug 31st, but the loan must fund by Sept 15th - Sept 26th, depending on the Lender. Others just have a funding cut-off date. Whatever the case, if you have a contract with a seller paid DPA program it can still be done but your L.O. needs to take it to the right Lender and needs to move on it NOW!! If you need help please let me know.
That's the biggest news right now, so I won't go into other topics at this point. We all hope the loss of the DPA program won't hurt home sales but we are also afraid that it will for a period of time until home buyers can save or come up with the required down payment. Time will tell!!.
This is a notice sent to me from a Lender......Neil Bud Levy, from Sterling Mtg.
Last edited on Fri Aug 29th, 2008 05:33 pm by
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Bambi
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Posted: Fri Aug 8th, 2008 01:55 pm |
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We have to get a grip on this real estate market. Are we so expansive, that we don't realize what is "really" going on? Can we really "track" the state of affairs with this Global Economy we are now entrenched in where success depends now on other countries economic status? DO we really have the big picture?
Questions that race thru my mind daily as I read and observe our state of affairs, and how we are impacting one another by our decisions.
http://promo.realestate.yahoo.com/americas-fastest-dying-cities.html
Yesterday a Bank was in escrow to purchase a corner lot. Million dollar deal. But alas, the Feds determined it was too risky, so denied them the right to use the Bank's Funds for the purchase. This is typical now. The Feds are coming down hard with tight restrictions...so tight they are "strangling" us to the point that activity is not just slowing down, but it's beginning to look like it will be coming to a screeching halt. I'm in that world of commercial and I network with these guys. THey are all worried and are experiencing NO GROWTH. NO INCOME. NOTHING. We can't stop the wheels of democracy and capitalism from turning because we fear the outcome.
Developers are still obligated to pay their debt service, but if they have no income coming in, then they default, which is happening left and right. That trickles down to the seller and his family; then the realtors; the builder; his employees; their family; they lose their house and their cars so now they are destitute and hit up their parents for help; now the parents become destitute and hit up the the Government. Now, we have become a Welfare State.
Let's get a grip. The Futures Market. http://en.wikipedia.org/wiki/Futures_contract Who is manning that? What do they have to say? And the Think Tanks. http://en.wikipedia.org/wiki/Think_tanks Are they aware of this event coming full circle?
There's a 3 acre lot that backs up to the Park that is forsale for $99k. And no bites. Owned by a lender. And to think that three years ago, I was selling those lots for $490k.
We're in a pickle  and we need to start from square one to assess this problem before it's too late. There is a pattern forming here and someone has to be aware. Our banks are loaded with other countries money, as we are losing most of ours. GM is losing money and jobs over here, but in China they cannot keep up with the demand. Ford too. China is growing....we're starting to fade?
WAKE UP AMERICA 
Last edited on Fri Aug 8th, 2008 02:29 pm by
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Bambi
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Posted: Thu Aug 7th, 2008 05:10 am |
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State Budget Update:
As of June 26th, the State's budget deficit has grown to approximately $2 billion. The legislature has passed a budget that is designed to close the deficit with some accounting maneuvers such as delaying a payment to K-12 education, agency cuts of approximately $360 million and a lot of bonding....aproximately $400 million between university buildings and school construction. It is very likely that this latest effort to fix the budget deficit was not enough as most reports show the deficit is closer to $2.2 billion, which will require the legislature to return to session at some point and make some more fixes.
The regular effective date for the new laws passed this session will be September 26th, 2008, unless the legislation includes an appropriation, fee increase, tax change or emergency clause. Here is one of the bills passed:
SB 1176: This legislation was proposed as a result of a citizens's ballot measure currently being circulated for signatures for the November 2008 Ballot. In reading the proposed ballot measure, the contents provide for several things, including an increase in the number of years a seller has to provide a warranty against defects for workmanship. This ballot measure's language caused concern for lack of clarity by the drafters.
What alarmed those of us in the Real Estate Industry, was a provision that required "sellers" to provide a 10 year warranty for a residential dwelling when it is sold. Currently, depending on the circumstances, a residential dwelling according to Arizona statute has either an eight or nine year warranty against defects from the date of substantial completion by the builder. The ballot measure caused the Industry enough concern that it successfully amended the definition of "seller" in state law to remove real estate licensees and their non-builder "sellers" from a mandate to provide a 10 year warranty for workmanship when selling a residential dwelling. 10 year warranties for workmanship are not available for purchase, and it is doubtful one could ever find such a product for a home older than 10 years.
SB1176 was signed by the governor and will go into effect September 26th, 2008
Source: Arizona Realtor.
Last edited on Thu Aug 7th, 2008 05:13 am by
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Bambi
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Posted: Thu Aug 7th, 2008 05:09 am |
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SanTanEvents wrote: Great information, thank you Bambi!
Hope you can use that loan for some of your short sale homes that the evacuees have left without cabinets, appliances and other attachments. I had a home once where they even took the wallpaper off the walls.
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SanTanEvents
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Posted: Wed Aug 6th, 2008 10:30 pm |
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| Great information, thank you Bambi!
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Bambi
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Posted: Wed Aug 6th, 2008 09:25 pm |
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From a local Lender: Bud Levy.
There are two subjects I want everyone to know about:
1. A NEW Bill is being introduced to reestablish the Down Payment Assistance Program (DPA). If DPA is gone forever it will be VERY Detrimental to the housing industry. PLEASE go to http://www.SaveDPANow.org and let your representative know that this MUST be reestablished!! I urge you to do this NOW!!!
2. I now have the 203K FHA Home Rehabilitation program available!! It is a Streamlined 203K that allows up to $35,000 added on to the loan that can be used for rehabilitating the home. This is needed now so the home buyer of a "trashed" home can replace the items missing or just needed, such as appliances, cabinets, fixtures, etc. Please contact me for more information about this GREAT 203K Program!!
Remember, no matter what happens with the new DPA Bill, the old DPA program is still available through Sept '08. Go out and tell those buyers that NOW is the time to buy a home and lock in on the more beneficial present FHA program!!!!!!!
Here are some of the latest rates.
30 year fixed: 6.75%
3 year fixed ARM: 6.6%
15 year fixed: 6.37%
When Stocks go up, so do mortgage rates.Last edited on Wed Aug 6th, 2008 09:26 pm by
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Bambi
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Posted: Wed Aug 6th, 2008 02:48 pm |
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SanTanEvents wrote: I had a client call their mortgage company to ask about changing their loan today in accordance with the new law.
She was told that it only applies to FHA written loans and she is conventional and didn't apply!!!! She was sooooooooooo angry. then they put her on hold and got disconnected. So I guess, she is officially gonna go into short sale instead a loan mod.
I see this new bill going nowhere fast! I just checked the NOT's and there are just about as much in July as there were in June. So, that gives us plenty of more REO/Short Sale inventory through the winter. No relief in site yet.
5.5 million more people are expected to default on their home loans. This does not count the defaults on auto loans and credit card loans. Everyone wants to walk and start over with a clean slate. Only those at the other end will suffer also.
It's festering, and getting bigger and bigger. It is effecting more and more people, not because they didn't budget their money or live a frugal life. Not just because the gas prices are sooooo high. or the cost to feed your family is sooooooooo high. And certainly, not because they chose to. It's because they are losing their jobs from this trickle down effect that is going on with commerce. Tooooo many of our overseerers were asleep at the wheel, and we are paying the price in a "big" way.
We are getting calls daily to list people's property's out here in the San Tans. The majority of our calls are from people who bought land to build a house on, either when they retire or they had the money saved up. Some out here choose to call them investors. They are not. They are just people/couples like you and me, wanting to live a peaceful life in the open spaces in the future. Neither is going to happen now. Those who were saving their monies up to retire, are now dipping into those funds to not only help themselves, but to help their adult children and their grandchildren, so their nest egg is depleting rapidly.
Those who own commercial land are also being effected big time. The impact fees for commercial in Pinal County are around $17. a sq. ft. That is prohibitive in this economy or any economy for that matter. They just won't build, then they will walk from their debt service and leave us a huge vacant, half built piece of land that will generate no income for our County or area, therefore once again, trickle down to effect the little guy.
We're in a pickle, and we aren't coming out of it any time soon. Unless.........we "gain" confidence and rise above this huge black hole we are being sucked into. That will be done hopefully when Obama, not McCain, comes to our rescue, giving us and the World, a huge shot of confidence. I watched McCain last night speak at the Sturgis Motorcycle Rally. What a dufus. He stumbled left and right. Then he offered his wife to compete in the beauty contest they hold. Little did he know that you must use a wet T-shirt to compete. And do some mud wrestling and the like. McCain is now having to "chase" the crowds to campaign, while Obama is holding rallys where thousands are coming to attend and listen to the voice of "hope."
Bryan Martyn? Another voice of hope. Another shot of confidence. He agrees with me and others that $17. a sq. ft. to build commercial development out here is outrageous, and a detriment to growth. Now who out here would want to STOP revenue producing growth? Who out here has already stopped revenue? Who out here is producing such negativity that people and business's are wanting to sell and leave? Who are these people who seek exclusive control of our destiny? Other cities are binding together to discover how to bring in more revenue so they can keep afloat. I am a member of a Group in Pinal that is agressively seeking commercial development for their area/town, while here we appear to be scaring them away.....as per them.
We must overcome our thoughts of dispair, and keep going, overcoming the obstacles that interfere in our growth. We can if we conqueor those thoughts of defeat. We must be strong and deligent in this quest over depression and destitude.
I stand and support my neighbors thru this. I offer my compassion and assistance to my neighbors to help them remove this black cloud that is hanging over us.
Last edited on Wed Aug 6th, 2008 02:58 pm by
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SanTanEvents
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Posted: Wed Aug 6th, 2008 06:52 am |
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I had a client call their mortgage company to ask about changing their loan today in accordance with the new law.
She was told that it only applies to FHA written loans and she is conventional and didn't apply!!!! She was sooooooooooo angry. then they put her on hold and got disconnected. So I guess, she is officially gonna go into short sale instead a loan mod.
I see this new bill going nowhere fast! I just checked the NOT's and there are just about as much in July as there were in June. So, that gives us plenty of more REO/Short Sale inventory through the winter. No relief in site yet.
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Bambi
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Posted: Mon Aug 4th, 2008 04:13 pm |
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My daughter bought a home in San Tan Heights in 05 for $430k. That purchase was also $15k less than the asking price at the time. Beautiful home. Now it's 2008, and she just sold one just like it in San Tan Heights for $205k. Same home. Different times. The decline needs to stop. It is only making it worse.
http://www.nytimes.com/2008/08/04/business/04lend.html?th&emc=th
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Bambi
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Posted: Sun Aug 3rd, 2008 05:39 pm |
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National Association of REALTORS®
Summary of Key Provisions of H.R. 3221 - The Housing Stimulus Bill (as of 7/30/08)
H.R. 3221, the “Housing and Economic Recovery Act of 2008,” passed the House on July 23, 2008, by a vote of 272-152. On Saturday, July 26, 2008, the Senate passed the bill by a vote of 72-13. The President signed the bill on July 30, 2008. The bill includes the following provisions:
- GSE Reform – including a strong independent regulator, and permanent conforming loan limits up to the greater of $417,000 or 115% local area median home price, capped at $625,500. The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).
[url=http://www.realtor.org/gapublic.nsf/files/fhagse2009loanlimits.pdf/$FILE/fhagse2009loanlimits.pdf]View 2009 FHA and GSE loan limit estimates[/url] (PDF)
- FHA Reform – including permanent FHA loan limits at the greater of $271,050 or 115% of local area median home price, capped at $625,500; streamlined processing for FHA condos; reforms to the HECM program, and reforms to the FHA manufactured housing program. The downpayment requirement on FHA loans will go up to 3.5% (from 3%). The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).
[url=http://www.realtor.org/gapublic.nsf/files/fhagse2009loanlimits.pdf/$FILE/fhagse2009loanlimits.pdf]View 2009 FHA and GSE loan limit estimates[/url] (PDF)
[url=http://www.realtor.org/gapublic.nsf/files/fhareformchart2008.pdf/$FILE/fhareformchart2008.pdf]FHA Reform Chart[/url] (PDF)
- Homebuyer Tax Credit - a $7500 tax credit that would be would be available for any qualified purchase between April 8, 2008 and June 30, 2009. The credit is repayable over 15 years (making it, in effect, an interest free loan).
[url=http://www.realtor.org/GAPublic.nsf/files/chart_homebuyer_tax_credit_.pdf/$FILE/chart_homebuyer_tax_credit_.pdf]First-time homebuyer tax credit chart[/url]
[url=http://www.realtor.org/gapublic.nsf/files/hbtaxcreditqa2008.pdf/$FILE/hbtaxcreditqa2008.pdf]Frequently asked questions about the first-time homebuyer tax credit[/url]
- FHA foreclosure rescue – development of a refinance program for homebuyers with problematic subprime loans. Lenders would write down qualified mortgages to 85% of the current appraised value and qualified borrowers would get a new FHA 30-year fixed mortgage at 90% of appraised value. Borrowers would have to share 50% of all future appreciation with FHA. The loan limit for this program is $550,440 nationwide. Program is effective on October 1, 2008.
[url=http://www.realtor.org/gapublic.nsf/files/fharefinancechart2008.pdf/$FILE/fharefinancechart2008.pdf]FHA Foreclosure Rescue Chart[/url]
- Seller-funded downpayment assistance programs – codifies existing FHA proposal to prohibit the use of downpayment assistance programs funded by those who have a financial interest in the sale; does not prohibit other assistance programs provided by nonprofits funded by other sources, churches, employers, or family members. This prohibition does not go into effect until October 1, 2008.
More about the seller-funded downpayment assistance provision
[url=http://www.realtor.org/gapublic.nsf/files/finddownpaymentprograms.pdf/$FILE/finddownpaymentprograms.pdf]Tips to finding downpayment assistance programs[/url] (PDF)
- VA loan limits – temporarily increases the VA home loan guarantee loan limits to the same level as the Economic Stimulus limits through December 31, 2008.
- Risk-based pricing – puts a moratorium on FHA using risk-based pricing for one year. This provision is effective from October 1, 2008 through September 30, 2009.
- GSE Stabilization – includes language proposed by the Treasury Department to authorize Treasury to make loans to and buy stock from the GSEs to make sure that Freddie Mac and Fannie Mae could not fail.
- Mortgage Revenue Bond Authority – authorizes $10 billion in mortgage revenue bonds for refinancing subprime mortgages.
- National Affordable Housing Trust Fund – Develops a Trust Fund funded by a percentage of profits from the GSEs. In its first years, the Trust Fund would cover costs of any defaulted loans in FHA foreclosure program. In out years, the Trust Fund would be used for the development of affordable housing.
- LIHTC – Modernizes the Low Income Housing Tax Credit program to make it more efficient.
- Loan Originator Requirements – Strengthens the existing state-run nationwide mortgage originator licensing and registration system (and requires a parallel HUD system for states that fail to participate). Federal bank regulators will establish a parallel registration system for FDIC-insured banks. The purpose is to prevent fraud and require minimum licensing and education requirements. The bill exempts those who only perform real estate brokerage activities and are licensed or registered by a state, unless they are compensated by a lender, mortgage broker, or other loan originator.
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Bambi
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Posted: Mon Jul 28th, 2008 02:51 pm |
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anne.reed wrote: I've seen recent nationwide statistics state that 1 in 180 homes nationwide are in default and in the process of foreclosure. Additionally, the credit crisis is beginning to spill over into credit card (unsecured) and secured debt (auto loans for example).
If this is the case, (I've learned these statistics are often skewed to suit the presenters interests) we are in for a heck of a ride. Like from the top of Magic Mountains' roller coaster... minus the coaster. Splat
Regards,
Anne
I just heard on the news that they still expect about 5.5 million loans to default by the end of next year.
I was owed money on a loan from a sale of property. They defaulted. I am owed a commission from 5 years ago. The property is now in bankruptcy. I have to go to the bankruptcy court to get paid, and only if I'm lucky. It is trickling down and effecting more and more people and the trickle is increasng to a study stream. No one out there to bail me out. The guy that owed me the money gets bailed out, but the person it is owed to is left holding the empty bag....now that guy will need to be bailed out and the next guy gets the empty bag....and on and on and on., till the end of 09. If gas goes down and gives us, the people, a "shot" of confidence and security, then maybe recovery will begin....just maybe.
Last edited on Mon Jul 28th, 2008 05:14 pm by
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Bambi
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Posted: Sun Jul 27th, 2008 10:23 pm |
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anne.reed wrote: Can you get information on the median price of houses sold for comparison?
Hope you're feeling better.
Regards,
Anne
Char sells homes; I sell commercial and land. But...... Char mentioned I believe that the median price is around $55. a sq.ft. now out here, based on short sales and foreclosures, which are the majority of sales out here. Confirm with her.
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anne.reed
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Posted: Sun Jul 27th, 2008 09:53 pm |
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Can you get information on the median price of houses sold for comparison?
Hope you're feeling better.
Regards,
Anne
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Bambi
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Posted: Sun Jul 27th, 2008 01:58 pm |
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An update from a Lender.
The last few weeks have been WILD and this last week was NO exception. With Fannie & Freddie being in trouble the mortgage backed securities, MBS's, didn't sell well, to say the least, and interest rates jumped. At one point 30yr fixed was up to 7.000%. The Government stepped in over the weekend, we knew they would, and legislation is now in the works to "back" Fannie & Freddie. Rates for a 30yr fixed is now back down to 6.375%. What a difference!!
Please note: This volatile situation is not over yet so expect LOTS more gyrations like this in the marketplace!
There is some bad with this good, if we consider it good that the Government is basically taking them over??? It looks like the Down Payment Assistance Program WILL BE COMING TO AN END!!! In the same legislation as stated above, they are dropping the DPA programs. Almost 40% of all FHA homes that are now being sold include some sort of DPA. THIS REALLY HURTS ALL OF US!! If this passes as is, the last day to get in on a DPA will be Sept 30th, 2008. That's just over 2 months away.
Last edited on Sun Jul 27th, 2008 03:40 pm by
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Bambi
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Posted: Sat Jul 26th, 2008 08:59 pm |
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Effects of the Bill? 400k people being allowed to refinance is minute compared to saving Freddie Mac and Fannie Mae from failure.
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anne.reed
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Posted: Sat Jul 26th, 2008 08:44 pm |
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I've seen recent nationwide statistics state that 1 in 180 homes nationwide are in default and in the process of foreclosure. Additionally, the credit crisis is beginning to spill over into credit card (unsecured) and secured debt (auto loans for example).
If this is the case, (I've learned these statistics are often skewed to suit the presenters interests) we are in for a heck of a ride. Like from the top of Magic Mountains' roller coaster... minus the coaster. Splat
Regards,
Anne
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Bambi
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Posted: Sat Jul 26th, 2008 05:38 pm |
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Housing Rescue Bill heads to Bush for Signature.
WASHINGTON - Congress passed a housing rescue bill Saturday aimed at sparing 400,000 struggling homeowners from foreclosure. President Bush is expected to sign the measure quickly.
The measure, approved by a 72-13 vote during a rare weekend session in the Senate, lets homeowners who cannot afford their monthly payments refinance into more affordable government-backed loans rather than losing their homes. The bill also offers a temporary financial lifeline to the troubled mortgage companies Fannie Mae and Freddie Mac, and tightens controls over them.
There would be higher limits on loans that Fannie Mae and Freddie Mac can buy and the Federal Housing Administration can insure. The loans would be capped at $625,000.
Those ailing companies back or own $5 trillion in mortgages, or nearly half the nation's total. The rescue plan is intended to prevent the two pillars of the home loan market from failing and causing broader market turmoil.
Bush initially said the proposal was a burdensome bailout for irresponsible borrowers and lenders. But he dropped a threat to veto it this week after Treasury Secretary Henry M. Paulson argued that the support for Fannie Mae and Freddie Mac was vital to calming markets in the U.S. and abroad.
Bush opposed $3.9 billion in the bill that would help neighborhoods devastated by the housing crisis buy and fix up foreclosed properties. The administration argues this would hurt homeowners by giving lenders an incentive to foreclose rather than help people stay in their homes.
Supporters said the bill was a long-overdue response to the mortgage meltdown and would help boost the sagging economy. Democrats bashed Republicans for delaying the measure and forcing the Saturday session.
The House approved the bill on Wednesday.
Last edited on Sat Jul 26th, 2008 05:39 pm by
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anne.reed
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Posted: Fri Jul 11th, 2008 07:37 pm |
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Thank you both! I just wish I could wrest a moment of unimpeded breathing as I enjoy the scenery...
Regards,
Anne
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Bambi
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Posted: Fri Jul 11th, 2008 05:39 pm |
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anne.reed wrote: I don't think I'd be very welcome company today. I've got a summer cold that's no fun at all, had me down for 2 days so far. Don't think you, or anyone else, would want a dose of this!
We'll get together after I recover. Thanks.
Regards,
Anne
Rest my dear.  those there critters are mountain sheep
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QCVillager
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Posted: Fri Jul 11th, 2008 05:06 pm |
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anne.reed wrote: I don't think I'd be very welcome company today. I've got a summer cold that's no fun at all, had me down for 2 days so far. Don't think you, or anyone else, would want a dose of this!
We'll get together after I recover. Thanks.
Regards,
Anne
then again - what better time than a day like today to just lie in bed and rest and watch the storms roll in ! that will help rest and heal the mind as much as the body
take care - get well
Last edited on Fri Jul 11th, 2008 05:07 pm by
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anne.reed
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Posted: Fri Jul 11th, 2008 04:51 pm |
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I don't think I'd be very welcome company today. I've got a summer cold that's no fun at all, had me down for 2 days so far. Don't think you, or anyone else, would want a dose of this!
We'll get together after I recover. Thanks.
Regards,
Anne
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