Historic Willow Homes

530 W PALM LN Phoenix, AZ 85003 $334,000


Considered one of the most preferred streets in the Willo District! This not so little house is charming like a cottage, but is almost 1800 square feet. Inviting front porch leads into the living room with beautiful wood floors and a brick fireplace. Formal dining room and large family room with a second fireplace are great for entertaining. The eat in kitchen has a modern feel w/SS appliances and a charming built in wine rack. Bathrooms have been tastefully remodeled, and there are warm designer colors through out the home. French doors lead to the covered travertine patio overlooking the large lawn in the private back yard. Inside Laundry! Two car detached garage with plenty of storage. An awesome value in Willo! Not bank owned or a short sale!

Interested in viewing this HOME? Give a jingle or send me an e-mail.

Linda Wieczorek
602-391-8246
AZhomes4u@gmail.com

Historic Willow... Does it get better then this?

Does it get any better then this?
67 W CAMBRIDGE AVE Phoenix, AZ 85003 $150,000


Transitional ranch home in the Prestigious Willo Historic District with some great mid-century features. Home is in dire need of rehab. To be sold in AS IS condition, Seller is unable to make repairs. Home will need major overhaul to be liveable. Quiet street on cul-de-sac very close to all of mid -town and down town's amenities. Must have vision as to what this house could be.

Interested in viewing? This one will go fast...
Linda Wiecorek
602-391-8246
Arizona Elite Properties
azhomes4u@gmail.com

Should Obama slash debt of struggling homeowners?

Today President Barack Obama signed a $787 billion bill to boost the sagging economy, but some housing watchers are more interested to hear what he has to say Wednesday, when he is expected to provide details of a $50 billion proposal to help homeowners avoid foreclosure.

Some experts say the only way to dramatically reduce foreclosures is for government to use taxpayer funds to reduce the amount struggling homeowners owe to the bank.

Jack Kyser, chief economist of the Los Angeles County Economic Development Corp., which also tracks O.C., said borrowers who owe more than their home is worth face a “psychological barrier” to keeping up their payments.

Up to now, loan modification programs have temporarily reduced monthly payments for borrowers while keeping the total debt intact. Kyser said those modifications have a high rate of failure. Indeed, govenment data shows many loans modified in the first quarter of 2008 went back into default within five to six months.

However, the idea of giving people a break on their debt strikes some as a “moral hazard” — people are being rewarded for bad behavior (buying more home than they could afford) and will do so again unless they are punished.

But Kyser said homeowners who miss payments suffer a loss in their credit scores and so will pay more in interest the next time they borrower money to buy a home or car, if they can get credit at all.

“They will be punished sooner or later,” Kyser said.

What do you think?

How Obama would change bankruptcy law for mortgages

In all the hoopla yesterday over President Barack Obama’s plan to provide up to $75 billion in mortgage aid, there wasn’t a lot of attention to a line in his strategic plan about giving bankruptcy judges the power to modify home loans, including a reduction in the balance owed to current market value of the property. Such a change requires a vote by Congress. Sounds Good but lets see how that goes once congress gets a hold of it..

National Mortgage News has a few more details:

President Barack Obama is endorsing changes to the bankruptcy code that will allow judges to modify mortgages that were made in the “past few years” and don’t exceed the $417,000 conforming loan limit, according to the president’s foreclosure prevention plan. “This provision will apply only to existing mortgages under the Fannie Mae and Freddie Mac conforming loan limits, so that millionaire homes don’t clog the bankruptcy courts,” the summary says. The bankruptcy legislation being proposed by the president is designed to help families that have “run out of other options.” But they must certify that they tried to get a loan modification and worked with a servicer before filing for bankruptcy. The legislation also provides authority for the Federal Housing Administration and the Department of Veterans Affairs to pay partial claims in the event of a bankruptcy or loan modification “so the holders of loans guaranteed by FHA and VA are not disadvantaged.”
February 19th, 2009, 8:07 am . posted by Mathew Padilla, Reporter

What other Financial Crisis Tell US

The attached article is perhaps the most informative I’ve read regarding our economy and what we can learn from other financial crises our country has faced in the past. It was written by Carmen Reinhart, a professor of economics at the University of Maryland and Kenneth Rogoff, a professor of economics at Harvard and former chief economist at the International Monetary Fund.

Below are a few of the highlights:

·Negative growth episodes, like we are experiencing, typically last just 2 years. This should end by September 2010 if history repeats itself.

·Housing typically falls 36% which means we may have another 8 -10% to go from current levels.

·Equity prices historically fall 55% in roughly 3 ½ years and could take another 2 years to have a sustainable rebound.

·Unemployment is likely to worsen for another 2 years and could mean double digits are reached.

The article goes into much more details than my summary above and is worth reading in full.
When asked about your view of the economy, this is a good article to send as a thoughtful and historical review comparing past “crises” to this one.

The other message is less obvious but arguably more important. Our economy will recover. Curtailing your spending as a client or prospect certainly is understandable but should be combined with a commensurate increase in saving.

Full Article

Foreclosure rates are rising

Arizona foreclosure rates are at an all time high, so don't feel like you're alone. A Arizona short sale may be the best way to keep your credit relatively intact (or from getting worse) for future purchases and can usually help you exit from a property without having to pay anything if you get the bank to accept payment in full without pursuit of a deficiency judgment.
What is a short sale?
A short sale occurs when the proceeds of a real estate sale fall short of the balance owed on the property. Typically, a short sale is conducted to prevent a bank from having to foreclose on a home. Although the lender may ultimately collect less than the amount owed on the mortgage, they will save money by not having to pay attorney's fees, go through an eviction process, make repairs to the home so it is marketable, or have the expense of keeping real estate in inventory.

Short sales can be very tricky and time consuming and need to be negotiated well ahead of time with the lender.

How do I get started on my short sale?
If you have recently had an interest rate adjustment, are behind on mortgage payments, have been contacted by your lender about a Arizona foreclosure, or are considering selling your home to avoid a Arizona foreclosure, call Linda Wieczorek about negotiating a short sale for you.

The key to a successful Arizona short sale is to call AZ Pride Properties as soon as possible Linda Wieczorek 602-391-8246

Fannie Mae Loosen Underwriting on Mortgage Refinance

This is a real PLUS ++++ Tho help everyone who needs to Refinance

By:Bill Rice | February 06, 2009
Fannie Mae has posted new guidelines for approving homeowners attempting to lower their loan payments with a mortgage refinance.
In a notice posted to lenders yesterday, Fannie Mae announced that they will drop some credit score qualifications, income documentation standards, and even waive the need for appraisals in some scenarios. Changes apply only to those loans owned or guaranteed by Fannie Mae.
Fannie Mae currently holds more than 40 percent of the $12 trillion US residential mortgages and is seeking to streamline the "back-log" of homeowners refinancing. According to Bloomberg reports, Fannie Mae spokesman Brian Faith indicated that this is an adjustment to allow homeowners to take advantage of near-record low interest rates.
Security analysts are concerned about potential harm to mortgage bond investors and insurers. Significant concern surrounds discussions of no-appraisal refinancing--concerns that borrowers with less than 20 percent home equity can forgo mortgage insurance. However, Fannie Mae anticipates using automated valuation models to screen appraisal waivers.
Fannie Mae's changes will allow homeowners to refinance up to 80 percent of the current value of their home with credit scores even below its current 580 minimum. The program will also lower income documentation requirements to a single current pay stub.
Fannie Mae Refi Plus program will expedite a majority of mortgage refinance applications that have surged on record low mortgage rates. This refinancing process will leverage Fannie Mae's automated risk assessment systems to validate market values and credit risk without traditional appraisals, inspections, and income documentation.
The streamlined Fannie Mae program, DU Refi Plus, will begin April 4, 2009. Statements from Faith estimate that this program will potentially aid millions of homeowners take advantage of record low mortgage rate to secure a lower payment

Multiple offers? I Thought this was a Buyers Market

Was reading Active Rain this morning and I came across this post by Elizabeth Bolton.
I enjoyed the read and thought I would post it on my Blog.

Given the unrelenting doom and gloom in the media, it's no wonder you feel like you've got the upper hand when you're looking for a new home. Visions of lowball offers, grateful sellers, and bargain basement prices dance in your head.

But real estate is local and even today you may find yourself in a competive market where houses sell quickly and still get multiple offers.

There have been a number of multiple offers in my market recently and it can take newcomers by surprise. Some houses, clearly well priced, get half a dozen or more offers the first weekend on the market. So here's a game plan to take you through the crazy, stress-producing process of buying a home when you've got competition.

What's a savvy buyer to do when there are multiple offers?

For starters, don't be discouraged and don't be afraid. It is possible to "win" and get the house of your dreams and it doesn't necessarily mean you have to break the bank to do so. I've bought three of the four properties I've owned in multiple bid situations - including my first house. And I've been happy with every house - no regrets!

Get A Buyers' Agent

You need to be working with a buyer's agent who will represent your interests in the transaction. Sometimes buyers think that going directly to the seller's agent will give them a leg up. But the seller's agent's responsibility is to the seller, not to you as a buyer. And it's quite likely that the seller will still owe the same commission to the listing office even though only one agent is involved in the transaction. And most important - in a multiple bid situation the listing agent's responsibility is to get the best offer for the seller - regardless of whether you've submitted an offer directly to him or her. The sellers' goal is to get more money in their pockets - not the agent's.

You need somebody on your side. A buyers' agent will be able to:

Pull comparable sales info to enable you to decide on a reasonable but competitive offer price
Advise you about real estate activity in the neighborhood for similar houses
Strategize about how to put together a compelling offer that has a strong chance of prevailing in a bidding war
How Does the Seller Decide Which Offer To Accept?

When the seller looks at several offers there are only so many points to compare. You want to shine on all points:

Price - Go over the comparable sales information with your agent. Don't get stuck on the asking price - the house may be purposely priced low to generate excitement - and that strategy worked! Carefully go over the stats and decide on a price that makes sense and seems competitive. Your agent will have experience in the market and be able to offer advice but ultimately you're deciding on an offer price that is comfortable for you and reflects just how much you want the house.

Don't assume that multiple bids means the offers will go sky high - sometimes all the offers can be under the asking price. Other times it does seem the sky is the limit - The comparable sales info and the amount of activity for the listing should give you some sense of how the offers might go.

Dates - Your agent will find out what dates work best for the seller - do your best to meet them. Maybe you'll have to move in with your parents for a few weeks or move more quickly than you had hoped but remember - you'll be moving into the house you love. The temporary inconvenience will be quickly forgotten.

Contingencies - The typical offer contingencies are financing, inspection, and in the case of condominiums, satisfactory review of the condominium documents. You should have a letter of preapproval from your lender at the ready. Be aware that some buyers may very well drop any and all of their contingencies. You have to decide if you are comfortable eliminating any contingencies. Perhaps you have cash on hand from a previous sale or your parents will back you up and you're open to the idea of dropping a financing contingency. Or you had the chance to go through the property with an inspector prior to submitting your offer.

Everyone's situation will be different and everyone's risk tolerance varies as well. Decide what if any contingencies you're comfortable eliminating. And if you are including contingencies discuss with your agent how to minimize the impact - by tightening dates, increasing the dollar value of repairs you're willing to take on, etc.

Deposits - Expectations for deposit amounts vary in different states and regions. Talk to your agent about the norms in your area and consider increasing the deposit. Thist doesn't cost you anything since the deposit will go towards your down payment. From the sellers' perspective, however, it shows evidence of the seriousness of your offer.

Respect The Emotions Involved In Selling A Home

Don't forget that selling a home is often an emotional transaction. Honor that. The sellers want to feel good about passing on their home to its new caretakers.

Now is not the time for pointed questions or asking for repairs - though that time may come if you've allowed for an inspection. Remember - you're being compared with other buyers. Don't stand out as a pain in the neck - it's not to your advantage if you want the house.

Keep extraneous issues out of the offer. You're buying a house - not the furniture. Focus on the goal and talk about extras later.

And one no-cost but often very effective tool is a letter to the sellers. Write about who you are, why you love the house, and how you'll take good care of it. Mention any special things that stood out to you. If you can tell the sellers took good care of the house say so. If you like their decorating mention that. Sellers will often remember and remark about the letter weeks after receiving it.

Ultimately the seller wants the best price and the fewest hassles. And if they can feel good about the new caretakers of their family home all the better.

What Happens Next?

There aren't any rules for how the seller chooses an offer. You may get an opportunity to better your offer and resubmit at an agreed upon time. Or the seller may choose one of the offers on the spot. It's typically to your advantage to submit as strong an offer as possible in the first round. But it also might not a bad idea to have a small buffer so that you can increase your offer by a few thousand if given the chance. But remember - you might not get that chance. Plan accordingly and put your best foot forward.

Go For It!

Some buyers are tempted to walk away from a multiple offer situation without even making a bid. But if you've found the house you really want - give it your best shot. A multiple bid situation is not insurmountable. And you can't assume that you'll have to write a sky high offer to get your offer accepted. When I sold my first house, purchased in a bidding war during a down market, one of the first people at the open house was one of the other bidders from five years before. I never regretted buying that house and for him it was the one that got away. So - work with your agent, craft your bid, and know that you've done your best. And maybe, just maybe - you'll be the happy new owners. Good luck!

If you are looking for Buyer Agent give me a jingle oe send me a e-mail
Linda Wieczorek
602-391-8246
azhomes4u@gmail.com