The Tucson Arizona area remains a highly desirable area and an outstanding value in real estate. Wise investors from all over the United States have started to recognize that we are at or near a cyclical low in the real estate market and the buyers have been out in force this winter in Tucson, Oro Valley, and Marana. Many are picking up second homes and retirement homes at bargain prices. A recent cnn.money.com article has tabbed Tucson as a "best recovery bet". I believe there will be a tremendous amount of wealth built in our country as a result of this low spot in the real estate market. With interest rates on the rise, now is the time to secure your slice of the desert southwest! What are you waiting for?
Questions? Visit DaveStuckyOnline.com. Call or text 520-991-4078
Friday, February 11, 2011
Wednesday, February 2, 2011
What Is Shadow Inventory?
Many people visiting my open houses ask about where home values are headed. Most of the people "in the know" are forecasting more declines in values nationally, for the first 3 quarters of this year. The main reason for these forecasts is the presence of shadow inventory. Here is a link that will explain shadow inventory, and why prices are expected to continue softening this year. Even if the prices do soften nationally, your market may be different. It is important that you consult with an active real estate professional that knows your area. They can give you information about local trends. If you or someone you know is interested in the Tucson market, please visit my website for further information, or give me a call.
520-991-4078
520-991-4078
Thursday, January 27, 2011
Changes to HAFA program
The government’s HAFA program can be of great help to anyone contemplating the short sale of their home. Recently, changes were made to make the program even better. The changes are summarized below. If you or someone you know is contemplating a short sale or is concerned about foreclosure, please contact me. I will be happy to share information.
On December 28, 2010, the Treasury Department released an update to the Home Affordable Foreclosure Alternatives Program (HAFA). The changes will increase the number of eligible borrowers who may participate in the program and should expedite approvals:
(1) A borrower’s reason for relocation no longer needs to be connected to employment nor be of a certain distance from the property. Borrowers may have moved up to 12 months before certain dates in the HAFA process but may not have purchased another home.
(2) Servicers are not required to determine if the borrower’s total monthly mortgage payment exceeds 31% of gross income. Borrowers will still be required to show a hardship.
(3) Servicers are now required to communicate approval, disapproval, or a counter offer no later than 30 calendar days after receiving an (i) executed sales contract, (ii) Alternative Request for Approval of Short Sale, and (iii) a signed Hardship Affidavit.
(4) If an unsolicited borrower requests HAFA, the servicer has 30 calendar days to determine the borrower’s eligibility and, if eligible, send the borrower the Short Sale Agreement.
(5) HAFA will no longer impose a 6% cap on payments to each subordinate mortgage/lien holder. The $6,000 aggregate limit is still in effect.
The update also clarifies vendors of the servicer may not be paid from the real estate commission. Servicers must implement the changes by February 1, 2011.
(1) A borrower’s reason for relocation no longer needs to be connected to employment nor be of a certain distance from the property. Borrowers may have moved up to 12 months before certain dates in the HAFA process but may not have purchased another home.
(2) Servicers are not required to determine if the borrower’s total monthly mortgage payment exceeds 31% of gross income. Borrowers will still be required to show a hardship.
(3) Servicers are now required to communicate approval, disapproval, or a counter offer no later than 30 calendar days after receiving an (i) executed sales contract, (ii) Alternative Request for Approval of Short Sale, and (iii) a signed Hardship Affidavit.
(4) If an unsolicited borrower requests HAFA, the servicer has 30 calendar days to determine the borrower’s eligibility and, if eligible, send the borrower the Short Sale Agreement.
(5) HAFA will no longer impose a 6% cap on payments to each subordinate mortgage/lien holder. The $6,000 aggregate limit is still in effect.
The update also clarifies vendors of the servicer may not be paid from the real estate commission. Servicers must implement the changes by February 1, 2011.
Know a first time home buyer in Pima County?
If you do, you might tell them about this. The Pima County Bond program offers a guaranteed low interest rate for first time buyers. The rate has recently been reduced to 3.99% to keep up with the latest low rates. Here are the basics to qualify:
Be a first time home buyer, and make it your primary residence.
Occupy the residence within 60 days.
Qualify for existing loan programs (FHA, VA, Conventional)
Have a FICO score of 620 or better.
Make no more than $72,480 (1-2 in household) or $79,675 (3 or more in household).
Buy a home in Pima County with a sale price of $276,334 or less.
With current rates now around 4.25% or more, this is a good deal and will just get better when interest rates rise. And they WILL rise. It’s just a matter of when.
Keep this program in mind for anyone you know that will be purchasing a home for the first time here in Pima County. Feel free to contact me for more information.
520-991-4078
Special Loan Programs
As everyone knows, mortgage lenders have significantly tightened their lending standards. If you know anyone who wants to buy a home, but aren’t sure if they qualify, you might pass this information along.
There are programs available to help specific groups of people to obtain home financing. There are many vets coming home that will be looking to buy a home. The Veterans Administration has a great home loan program available. The USDA has programs available for people buying rural properties. The FHA has a program for buyers looking to purchase and renovate a home. Seniors over 62 may want to check into a purchase reverse mortgage. A recent client of mine bought a home using a purchase reverse, and it enabled them to get a nice retirement home with no mortgage payment, which enabled them to preserve more of their savings for living expenses. Many states including Arizona have programs designed to help revitalize neighborhoods will help the buyer with down-payment money to buy specific properties within the program area.
For more information on these programs, you can start by taking a look here. As always, if I can help you obtain more information about buying or selling a home please contact me via my website, or email to dstucky@longrealty.com
Thursday, September 9, 2010
New FHA Short Refinance Option
As of September 7, the FHA has a new program to help people who are underwater (owe the bank more than their home is worth). Check out the details here. Basically, the program allows you to refinance your primary residence under certain conditions: The lender must agree to forgive 10% of your unpaid principal, you must obtain the cooperation of all lien holders, the lender must agree to forgive at least 10% of the unpaid principal on the original note to bring the combined loan to value ratio to a maximum of 115%, the new FHA loan must not have a loan to value ratio of more than 97.75%, you must be current on your payments, you must have a credit score better than 500 and meet other normal FHA requirements.
The federal government has tried desperately to stabilize the housing market through tax credits (see my last blog post), by purchasing mortgage backed securities, and implementing loan modification programs. None of these things have done the trick, and I don't expect that this new program will turn things around either. However, for homeowners that are just squeaking by, and that meet the criteria above, this may be an excellent way to refinance and save some money each month.
The federal government has tried desperately to stabilize the housing market through tax credits (see my last blog post), by purchasing mortgage backed securities, and implementing loan modification programs. None of these things have done the trick, and I don't expect that this new program will turn things around either. However, for homeowners that are just squeaking by, and that meet the criteria above, this may be an excellent way to refinance and save some money each month.
Monday, August 30, 2010
Are more tax credits needed to revive housing?
We are starting to see suggestions for another round of federal tax credits in order to try and jump start the housing market again. Is this really a good idea? Thanks to Bryan Murphy for the link to this article. While it would certainly provide some short term relief and as the article suggests, provide a reduction in the current inventory of homes, experience suggests that the last round of tax credits did not do much to solve the underlying problem. I would suggest that further tax credits are not the answer. The tax credits earlier in 2010 worked well to stimulate activity, but the market is paying the price with a slow down now. The housing market will recover on it's own, and the faster it corrects naturally, the better for everyone in the long term. Housing would benefit much more if the federal government would use their "laser beam" to focus on job creation . There are hoards of people out there who are on the fence about buying their first home, or upgrading their current home. I speak with them every weekend. They are not moving forward because of the wobbly economy, the reckless spending of the feds, or a general unease about our country. They fear for their own long term stability. What we need to stimulate the housing market is a boost in consumer confidence. Once people are confident, they will be out in force buying homes. Builders will start building new homes again, and the economy will start to take off.
With low home prices, and record low interest rates already present in the market, the only missing piece is some confidence in our economy. Please call or write your congressman and ask them to keep their eye on the ball. Elect representatives that will focus job creation and spending cuts.
With low home prices, and record low interest rates already present in the market, the only missing piece is some confidence in our economy. Please call or write your congressman and ask them to keep their eye on the ball. Elect representatives that will focus job creation and spending cuts.
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