Archive for the 'Uncategorized' Category
Buy and Bail
July 26th, 2008 Categories: Uncategorized
What is “BUY AND BAIL”
“Buy and Bail” is a term used to describe homeowners (usually heavily upside down) who go out and buy a new home at today’s value, then once closed, they either try and short sale their home or foreclose on it. This is happening a lot right now.
Most people are getting qualified by renting their home to reduce their debt-to-income ratio. Then they would just stop making payments, collect rent (if the rental contract was even real in the first place), and let the home go. So the tenants will be booted 6 months later and the community has one more repo on the block. Read the rest of this entry »
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Buyer’s!! Hurry…Down Payment Assistance is going Bye-Bye
July 26th, 2008 Categories: Uncategorized
Since the demise of the sub-prime lending market, the only realistic way of getting 100% financing has been through an FHA loan with down payment assistance from a 3rd party company like Genesis, Ameridream, or Nehemiah. Basically, the FHA requires 3% down payment, for those that don’t have 3% they could use one of the above programs to “gift” it to the buyer from the seller. Well….HUD has said that they will no longer allow one of the 3 party organizations “gift” this down payment. The buyer can still use “gift” proceeds from family members or other FHA qualified sources, but not Ameridream and others. This will go into effect on November 1, 2008 unless overturned before then.
Please see the link for related article from realtytimes:
http://realtytimes.com/rtpages/20071003_sellerassist.htm
It’s now July 26, 2008, go get a home now
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Why Short Sales Dont’ Close
July 24th, 2008 Categories: Uncategorized
Ahh… the infamous short sale. Most every home buyer has heard some horror stories about a short sale falling apart. Why? Do they know why? Sometimes you never find out.. here are some past reasons that I have experienced.
First, all short sales are not created equally. No file is the same, banks have different guidelines, the end-investor has their own internal guidelines, and the agent has their own system for processing. Every file is different. It is up to the agent to foreshadow and roadblock ahead of time to save everyone time and energy. Here are a couple reasons: Read the rest of this entry »
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You will not lose in buying a home…in Surprise
June 27th, 2008 Categories: Uncategorized
So this is for anyone that is thinking of buying a home in 08′.
Most of you are worried that it could be a bad investment. Buying a home is almost never a bad investment…unless you were a speculator in October of 05′ trying to make money. As an owner occupant in Surprise, long term you will gain.
I finally figured out how to work those complicated calculators that tell the future of things, here is what I found out:
If you buy a home this year for $135,000 and the average annual appreciation rate is 5%, in 5 years your home will be worth
$172,298
That is a gain of $37,298 over 5 years.. not bad considering renters gain a whopping zero!!! This is also not including any tax benefits, bankowned purchase rebate, or just pride of ownership.
It is OK to buy, just dont purchase more than you can handle.
have a great 4th of July
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Surprise Farms Home Purchase 08′
June 27th, 2008 Categories: Uncategorized
Happy Holidays Surprise, AZ!!!
For those of you on the fence on buying a home in today’s market let me start out by saying that the best time to buy a home is when it is”your best time”. However, there are some that are trying to wait it out for that exact pinpoint bottom of the market… The market is losing inventory and there are multiple offers on many homes today, I am not saying that we are done dropping in price but we are CORRECTING. And that is a very good thing.
Investors are back (the real investors), prices are affordable, and rates are still reasonable, so why not buy? If you have a job history and you are renting at Surprise’s average rental rate, with below average credit, then you can buy.
Take a look at these numbers:
Right now in Surprise Farms you can buy a home for around $135,000…At today’s FHA rate of 6.5% a P/I payment (less taxes, MI, insurance, etc) would be $853.00 a month.
Now, if you are waiting for the market to drop more, look at these numbers:
You waited and the market dropped another 10% (13,500) so now you finance $121,500. But wait, during that bubblesitting, the interest rates went up to 7.5%. Now your payment monthly is $849.00 a month. The same?? Not really because you have to add in that you are paying at least $900 a month in rent to a landlord and not paying down the principle on your own home. I cannot say what rates will be in the future, other than they will go up. But, I can say they have come up 3/4 of a percent since early February of 08′.
So, I will close by saying that if you are paying rent in Surprise right now and you are able to buy (you would be very surprised that you probably can purchase) then you should…Why pay someone else’s mortgage for them.
Happy 4th of July people
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Short Sales, Short Sales, Short Sales…
March 26th, 2008 Categories: Uncategorized
Poor little short sale home. Nobody wants a short sale. Hopefully That changes because along with bank-owned properties that is all that is out there. The builders still have yet to drop their prices and are way above what a short sale and bank-owned property would sell for (buyers beware).
So why the hesitance for a short sale home? Mostly because in the past they have been known to take a long time to get approved or non-approved. Folks.. things are getting better for short sales. Agents and lenders alike have polished their skills and are now getting agreement letters in under a week. Lenders are now realizing that if they choose to foreclose, they will lose much more money in the end.
Now, there are some banks that do not do short sales for one reason or another (ocwen). Owners with a loan out with ocwen are facing foreclosure unfortunately. But most do, and have teams and divisions to specifically deal with the short sales.
So buyers, do not be afraid of a short sale home on the market. Have your agent screen the listing agent to see if they have their short sale “ducks in a row”, some do and some agents don’t. There are some great deals out there. And the best part… with the AAR short sale addendum, the buyer is not committed to the purchase until that agreement letter from the bank comes in.
So what are you waiting for?
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Bankruptcy for Discount Real Estate Brokerage
February 13th, 2008 Categories: Uncategorized
I thought this was an interesting article. One of the biggest discount real estate brokerages in the Northeast goes bankrupt. Why? I also have talked to a friend of a friend who owns (or owned) 5 Help-U-Sell offices in the central California area and he just closed 3 shops and condensed to 2. Why?
We are in a cleansing phase for the real estate profession, it now takes knowledge, experience, a proven marketing plan, and skill to sell a home. You need Us…..
Foxtons may file for bankruptcy
BY JAMES BERNSTEIN james.bernstein@newsday.com
11:04 AM EDT, September 27, 2007
Foxtons, the one-time 800-pound gorilla of the 2 percent marketplace in the New York metropolitan area, said it may file for bankruptcy and close its business, explaining it “can’t stand in the way of a hurricane” that has come about as a result of the decline in the home mortgage industry.The New Jersey-based company, which once rocked the real-estate industry by selling homes for as little as 2 percent commission — compared to commissions of up to 6 percent at other brokers — said in an announcement that it is “releasing” 350 of its 380 employees “and may be filing for bankruptcy protection in order to close the business in an orderly fashion.”No one answered the phone at the company’s headquarters Thursday morning
In a statement, John D. Blomquist, Foxton’s senior vice president and general counsel, said the company had been “well run, very efficient” and had “a great team that has pioneered a new model in the real estate business — a model which has proven itself and, we believe, will have lasting influence on our sector.”But, he added, “The plain fact is that we have been battling against a real estate market that recently has turned into a sharp decline, and the company no longer has the liquidity to operate as a going concern.”"We understand the impact of the action we are taking, but there comes a point where you can’t stand in the way of a hurricane, and it is a property hurricane we are facing.”The company’s announcement said that it has some 4,400 current listings and that it plans to “preserve the value of these listings to minimize customer disruption and to dedicate the anticipated revenues to pay creditors.”Foxtons created a huge advertising splash, spending close to $12 million a year on television, radio and billboard ads. It even used buses, bus shelters and subway platform ads to attract customers.
Have a great day
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Buy your Surprise, AZ Home Now!!
February 2nd, 2008 Categories: Surprise AZ Home Buying, Uncategorized
I have been saying lately that you can now buy a home n Surprise for what you are paying in rent..
Here is the proof:
Just received an email from a builder that has a spec home in the area with mountain views that is being sold at
$118,000
yes, $118,000 dollars
The home is small but at 1230 Sq. Ft it is as big as the apartment you are living in and you would own it.
My lender has a program for lower to middle class income levels that gives 100% financing at 5.125% for 30 years. You need 620 credit, 1 year employment, and no more than 41% debt ratio, you also cannot make more than 48k per household. These are average numbers to meet.
With this loan program, at a purchase of $118,000 dollars your principle and interest payment would be $642 a month. Add taxes ($100), HOA ($40), and insurance ($50) and your payment would be around (estimate)
$832 per month
That is average rent for a small home or apartment in Surprise. Just need a job, low to average debt, and an average credit score, plus, you have to want to be a homeowner.
GO OUT AND BUY A HOME ALREADY, WILL YA!!
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Where is Surprise, AZ From?
January 19th, 2008 Categories: Uncategorized
Another year has gone by and here we are already half way through January. Traditionally for me this time of year has kinda of made me homesick. Everyone thinks of their friends and family back home and wish they could be there. Where is this leading….
Surprise, AZ has quickly grown to 105,000 people in the past 4-5 years… that’s it!! And most are from somewhere outside of Arizona. I am, and so are most people I meet in Surprise. I would like to know, “Where are you From?
I am inviting you to share your origins. If you would like to respond with a quick reply on your hometown, old school, maybe even the institution if that is your thing, then please do. SHARING IS CARING.
I will start….
I grew up in a small coastal town in northern californina called Half Moon Bay. just south of San Francisco on the coastal highway. Known for big wave surfing (Mavericks) and pumpkins. As much as I wanted to get out of town when I left, I miss it dearly now. The dense fog, ocean at my doorstep, coastal mountains, and the small town atmosphere. I have family here in the valley which is what brought me here in the first place. I chose Surprise to start a family. I am very happy with my decision.
your next…
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“Are we there YET?”
October 30th, 2007 Categories: Surprise AZ Real Estate, Uncategorized
“Are we there yet? Are we there yet” 
Those are the words my sons says on the way to Cold Stone Creamery and we are not even on Bell Rd. from Greenway yet. “Almost”, I tell him. “We are almost there”. Those seem to be the same words I am telling my buyers and sellers relating to the Surprise, AZ real estate market.
- jobs continue to grow
- mortgage rates are and should remain low
- there is a projection for inflation to decelerate Read the rest of this entry »
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