Maricopa County Arizona:  

We have one of highest amounts of residential home inventory in the country.  We broke lots of firsts over the last couple of years.  We had the fastest appreciation gains in the country and now we had the fastest depreciation values in the country.  Now with prices so low and interest rates attractive, the property investors and first time home buyers are flooding the market with purchases.  With that flood of home sale activity, inventory levels seem to be improving.  In the last two months bank foreclosure inventory in the price range of $200,000.00 or less has dried up.  I got one report put out by Fletcher Wilcox with Grand Canyon Title Agency that shows inventory levels for homes priced under $200,000.00 with about 2.5 months of inventory.

Now I am being told by many real estate sources that the banks held back on releasing more inventory until they knew for sure how the new federal home bailout programs would work.  Now that the banks know there is not much incentive, we are told that a flood of more foreclosures should be hitting the market. 

But are the banks really going to release all this inventory?

I am not a conspiracy believer, but I have a trustworthy source stating that banks will not be
releasing all their inventory and will take advantage of higher rates to help offset losses
over the last couple of years.  They are also taking advantage of multiple offers now that "big brother" is offering so much incentive to first time home buyers. 

I am not 100% buying into this one, but thought I would pose the question.

Are Banks Holding Back on Releasing Home Foreclosure Inventory and for what reasons?

Business Referral Network would like the chance to get to know you! Referral Networks are a great way to expand your business and get connected with new clients. We work together to make sure our friends, family, and customers receive quality services from reputable businesses.

We invite You to Our: Business Referral Network Happy Hour Event

May 27, 2009, 5:00pm at Darcy Magees, Tempe Market Place

Increasing Buying Power-Understanding Credit

Cherry Creek Mortgage Company will be holding a free class on understanding the in's and
out's of credit scoring on May 20, 2009 at 4:00pm . This class will be held at
Cherry Creek Mortgage 1630 South Stapley Drive Ste. 100, Mesa, AZ 85204.

This class will be taught by Charlie Brandes with Advantage Credit. Charlie is an expert
speaker/instructor on this topic and travels the entire state of Arizona talking to
realtors, consumers and borrowers about the power of credit.

Charlie will be covering the following topics:

What is the best mix of credit to obtain the highest scores

The do's and don'ts with credit for buying property

How degrogatory information will impact your credit and buying potential

How to increase your potential buying power with better credit scores

Plus Charlie will go over proven tips to help prevent fraud and identity theft.

If you would like to attend, please RSVP by emailing me.

Cherry Creek Mortgage Company announced on February 20, 2009 that they are now requiring minimum credit scores of 620 or higher for most FHA and VA loans. This comes as no surprise since most industry standards with investors have already moved in this direction. These new credit score requirements will not apply to borrowers who are applying for an FHA Streamline Refinance or VA Interest Rate Reduction.

Now please be aware that this is NOT an FHA or VA rule. FHA and VA loans in general are not credit score driven programs. However, due to higher default rates on these type of loans, the investor market who buys these loans put in certain stop gaps to get a better handle on marginal credit score borrowers and high default rates.

 I think about this old man from time to time that had everything and nothing to live for.

This was back in the day when I was not a peddler of mortgage products but an escrow closer for property.  I had this client who was 93 years of age and just the happiest of people.  To be honest he was the cutest little thing.  He story was a sad one but stuck with me for the rest of my life.

You see this little old guy lost his wife about 3 years earlier and his life changed dramatically he was married for 67 years getting married when he was 23 years old.  His best friend of his life died and life became very tough on him from there on out.  He was heart broken and out of place without his sweetheart. 

At the age of 93 he really was not able to take full care of himself anymore and his son contacted me when Dad was selling the home.  Dad contacted me when he had a contract and wanted me to help him do everything to close his home and move on with the last chapter of his life.  He knew in his heart he would be dying soon, so he was passionate about getting the sale of his home closed.  This is when he asked for me to come visit him at his assisted living home for he already moved out of his home he was selling.  As I sat there for over an hour getting the papers signed by him necessary to sell his home and transfer the deed I learned a lot from this happy and cheerful fellow.

He looked me straight in the eye and told me about how life throws us do-overs.  He said everyday is a blessing and tomorrow is a new day.  He looked me over and said Gary you will have days, weeks, maybe even years of disappointment, but tomorrow is a new day and a do-over. 

Anyway his thoughts and words stayed in my life today and I realize the gifts we have and the do-overs we are given.

This home he sold was the last "big thing" he needed to accomplish before his little heart would give out.  He passed away nearly 3 weeks later at the age of 93. 

What was ironic was his son called me and told me his Dad passed and said you know, I think you and the real estate agent help keep Dad with us a little longer. 

Of course I was a little choked and realized how precious life really is. 

Every time I turn on the television or listen to the radio I hear another media talking head share with the public that banks are not making mortgage loans for buyers with credit scores less than 680, 720 or 740. Well I want to first set the record straight that this is not entirely true.

Now Let me make myself clear that "YES WE CAN" get you a mortgage if your credit score is lower than 680. There are conditions, but it is possible and I do it everyday for a lot of my clients.

Now that I set the record straight, let me explain this a little further.

Mortgage Loan Programs for Credit Challenged Buyers

Read Further:

The Housing and Urban Development better known as HUD has finally halted abusive practices by home-builders in which they would revoke huge buyer incentives for not using their preferred/affiliated mortgage company. When a colleague of mine Tom Burris shared this with me, I was jumping up and down in excitement. Over the last 2 years I have written 4 posts about this abusive behavior.

Are Builders Violating RESPA with Using In-House Lending?
Home-builders and Abusive Practices
Should I use the Home Builders Lender?
I decided to try and take some action against Home-builders and Abusive Practices

Effective Jan. 16, 2009 a new home builder can no longer use "disincentives" to steer their customers to their preferred mortgage company. HUD Halts Abusive Home-builder Practrices  (read further)

I guess if life has taught me anything is that expect the unexpected.  Well this year our choice for our "adopt a family" has lived up to the unexpected.  Every year my wife's whole family and I adopt a family for Christmas.  Instead of buying ourselves gifts we seek out a needy family each year who is struggling and we give them and their kids a good Christmas.  We buy all the children nice clothes, gifts, gifts certificates for groceries, the whole nine yards.  It always brings a big tingle in my belly when we do this each year. 

However, my tingle in my belly turned to a bad stomach pain when we found out that the family we choose this year is really not that needy.  At last moment, we found out that the family drives very expensive cars, lives in a gated golf community and has a lot more to be thankful for than myself.

How do these folks think that someone should be giving them a "Free" Christmas.  We did decide to pass on this family and have re-selected a family who is struggling this year and can really use the help. 

Normally I am not one to predict the market when it comes to mortgage rates, home values, good deals, tax incentives or tax rebates, but the writing on the wall is extremely clear to me that we have entered into what I want to phrase "The Perfect Home Buyer Storm". I have not known a better time for first time home buyers or step-up home buyers to take advantage of all the benefits that are out there right now.

Here is my list of things that have transpired to make this "The Perfect Home Buyer Storm":  Read Further

Almost everyone I know who lives in Arizona is not a native of this state.  Some of us were transplanted here many years ago and some are just arriving.  To be an actual native (Arizona Born) is very rare.  We folks who have lived in this state of any period of time joke with each other that if you can survive 2 whole summers in Arizona that you are now an adopted child of this state.  My parents transplanted me to Arizona back in 1982.  I have been living here for the last 26 years now.  After 26 hot and wonderful years, I think I can talk as an expert of understanding the changing culture of Arizona.  Lately, that culture has been very scary for me and I felt it was necessary to address some frightening issues going on in our state.

In the last 2 years, our state has decided to create some of the strictest laws on DUI, Illegal Immigration and now Traffic Enforcement.  Now on the surface, these issues all seem to be great causes, but as you dig deeper into the reasons behind these laws, the system here is moving in a very dangerous direction.  Our state now has cameras on every major intersection on highways, our sheriff makes random neighborhood sweeps and our law enforcement officers have the power to arrest and take blood from individuals if they slightly think that person has been drinking. 

Let me first make it clear that I truly condone wrong doers.  We recently had a bad situation in our east valley happen when an illegal immigrant who was drunk killed an innocent person from drinking and driving.  Please read Jay Thompson's post further:  Reflections: In Memory of Kelly Tracy

However, the balance of wrong doing and personal freedoms of a borderline Police State must be changed.  In the past I felt safe to drive across town and visit friends or relatives. Now, I do not enjoy driving due to hundreds of traffic cameras watching at all times that I am a perfect poster child of society.  These new laws are set up in a way to be guilty until proven innocent, which is completely against our system of innocent until proven guilty.   

What is further upsetting is why we have so many cameras now on our highways.  The State of Arizona passed a law to set up speed cameras for a revenue generating taxation.  In the past these tickets would of added points onto your drivers license and you would have had to attend traffic safety.  Now however, the State of Arizona could care less about your well being of being safe.  Just pay the fine and be on your way.  A police officer I know once told me that one out of 21 people end up with a traffic citation.  Those numbers now must be much higher. 

What this really boils down to me with and why I am miffed is because I feel like zero tolerance laws for DUI, Illegal Immigration Sweeps and Photo Radar Tickets all sound good, but when applied just erodes more of our personal freedoms that we have become accustomed to in the United States.  I worry about the day that I wake up in the United States and our world has become something out of a sci-fi film like Minority Report.    

For full information on camera locations and citizens getting involved to remove the cameras:  Please Visit:  http://azspeedcameraslocations.blogspot.com/