Transients Take Over Vacant Home

Last week, I was previewing a few homes for a client in the Downtown Phoenix Area. After trying the key on the front door (to no prevail), I went around to the backyard. I noticed the back door was wide open & there were some clothes in the storage shed. It appears that some transients have taken over the home. I made a decision to not go in the house due to the safety factor. I called the listing agent and advised him to call the police.

Here are a couple pics that I took.

Arizona First Time Buyer Tax Credit

Here is a basic summary of how the Tax Credit works:

- First-time home buyer tax credit of 10% of the purchase price of the home not to exceed $7,500

- In the case of two or more individuals who are not married, $7,500 is the total credit for all individuals combined

- “Refundable” credit means that if the actual tax liability was, say, $5,000, the purchaser would have the entire $5,000 tax liability wiped out plus they would receive a tax credit refund of $2,500

- Phase out if modified adjusted gross income exceeds $75,000 ($150,000 if married, filing jointly)

- Completely goes away if income reaches $95,000 ($170,000 if married, filing jointly)

- First Time Home Buyer defined as not owning a home within 3 years

- Cannot purchase home from a related person

- Recapture of credit over 15 years (accelerated recapture if the home is sold or ceases to be primary residence

- Applies to purchases made between April 9, 2008 and July 1, 2009

If you would like a detailed breakdown of how this program works, please let me know.

Why do Short Sales take so long?

I get asked this question very often, and the reason is simple... The lender who is ultimately taking the financial hit is waiting for that big fish to come along. Here is a brief explanation of how a Short Sale works...

(FYI - A Short Sale is when the seller/owner owes more than the home can bring at fair market value)

1) The home owner (seller) is unable to continue making the monthly mortgage payment.
2) Seller hires a Professional Real Estate Consultant to list the home as a possible "Short Sale".
3) Listing Agent (LA) will price the home very low (sometimes too low) in order to draw some buzz to the home and start collecting offers.
4) If the LA is in communication with the seller, the seller will review the offers and pass along the ones that they accept to the lender.
5) LA will continue to send the other multiple offers to the lender for their review and final approval.
6) The lender usually will draw out the process up until the time of the trustee sale (foreclosure). If they have a solid offer, then the lender may accept and save the home owner from foreclosure.
7) Lender are not accepting low offers on Short Sales for the simple reason... They are looking to minimize their loss and are not going to give away the property. As they would say... You can't get a deal on a steal... There are other buyers in this market and the lenders know that.

Well, I hope that gave you a little insight as to why a Short Sale could take 1, 3, or even 6 months to complete.

Now keep in mind, there are also lenders that are very fast to react if they are getting close to the trustee sale. This is a date that you'll want to find out if you are interested in a Short Sale or else you could be in for a long, boring ride.

FHA Down Payment Assistance Program

The new Federal housing bill is expected to be signed into law very quickly in order to grant the Feds authority and the means to take over Fannie and Freddie. The President has already rescinded his earlier threat to veto and has now promised to sign it.

In the new bill, there is a provision to eliminate the FHA Seller Assisted Down Payment Programs (ADP) through Nehemiah and AmeriDream. The bill gives a stop date for the programs of October 1, 2008, however, lenders will be permitted to discontinue the ADP at their discretion anytime before October 1, 2008.

As a side note, NAR seems to be addressing more so the gifted down payments (which will continue- gifted from a family member) and bond money, which there is none of at the moment.

What this means for you:
If you or anyone you know have been considering making a purchase, and would like to take advantage of the FHA Seller Assisted Down Payment Programs, now would be the time to seriously start looking. Please give me a call or email if you would like to discuss this in further detail and see how this could work out to your benefit.

Most Expensive Home Sale (6-23-08 to 6-29-08)

DATE OF SALE: 6/26/2008

LIST PRICE: $3,295,000

SALE PRICE: $3,170,000

AREA: Scottsdale - Happy Valley Rd & Alma School

SQ. FT. - 7,391 Sq Ft.

SUBDIVISION - Glenn Moor

Truly incredible Tuscan inspired architectural masterpiece with fabulous city light and mountain views on an acre plus lot. Experience the finest finishes & details including a 750 bottle wine cellar, 24 travertine, canterra stone fireplace & staircase, and a magnificent formal dining room with chandelier and acoustically designed domed ceiling.