Jennifer Wehner EARNS PRESTIGIOUS DESIGNATION TO HELP HOMEOWNERS IN DANGER OF FORECLOSURE
Jennifer Wehner of Prudential American Associates just earned the prestigious Certified Distressed Property Expert (CDPE) designation, having completed extensive training in foreclosure avoidance and short sales. This is invaluable expertise to offer at a time when the area is ravaged by "distressed" homes in the foreclosure process.
Wehner got her start in helping owners in foreclosure in 2007, when she had trouble selling a custom home for a couple going through a divorce. "The market was declining every month, and the offers I had were far below what the homeowner owed" Wehner said. Understanding the homeowners could no longer afford to make payments, she began working with the bank on accepting a lower amount than what was owed.
Short sales allow the cash-strapped seller to repay the mortgage at the price that the home sells for, even though it is lower than what is owed on the property. With plummeting property values, this can save many people from foreclosure and even bankruptcy. More and more lenders are willing to consider short sales because they are much less costly than foreclosures.
In the Phoenix Metropolitan, more than one in ten homeowners is facing foreclosure. It is happening in all price ranges. Local experts say that even high-priced homes are not immune.
"I started doing short sales at a time when there was not much information out there, and have since attended many forums, seminars, and classes on the foreclosure process. The CDPE designation has been by far the best education and support system I have experienced as I work with sellers and lenders on complicated short sales," said Wehner. "It is so rewarding to be able to help sellers save their homes from foreclosure."
Alex Charfen, founder of the Distressed Property Institute in Boca Raton, Fla., said that Realtors® such as Jennifer Wehner with the CDPE designation have valuable training in short sales that can offer the homeowner much better alternatives to foreclosure, which virtually destroys the credit rating. These experts also may better understand market conditions and can help sellers through the emotional experience, he said.
The Distressed Property Institute opened in January 2008 and provides training on-site and online. The CDPE is the premier designation for Realtors helping homeowners in distress and handling short sales.
"Our goal is to educate as many people as possible so we can help as many homeowners as possible," Charfen said. Wehner has set up a website to help educate homeowners facing foreclosure on all of their options. Homeowners facing foreclosure can receive helpful foreclosure information, as well as receive a free report at: www.AZForeclosureHelpToday.com.
After debate over the final dollar amount, the new economic stimulus bill awaiting President Obama's signature on Tuesday will contain an $8,000 tax credit. First-time buyers can claim the credit worth $8,000 or 10% of the home's value, whichever is less either on their 2008 or 2009 taxes. This credit will be refundable, meaning tax filers see a refund of the full $8,000 even if their total tax bill - the amount of withholding they paid during the year plus anything extra they had to pay when they filed their returns - was less than that amount. To qualify for the credit, potential home owners must have purchased January 1, 2009 or later and will have up until November 30, 2009 to close on their new home. Buyers may not have owned a home for the past three years to qualify as "first time" buyer. They must also live in the house for at least three years, or they will be obligated to pay back the credit. Additionally, there are income restrictions: To qualify, buyers must make less than $75,000 for singles or $150,000 for couples. Although higher-income buyers may receive a partial credit. In addition, applying for the credit will be easy as home buyer will be able to just claim it on their return. No other forms or papers have to be filed. Taxpayers who have already completed their returns can file amended returns for 2008 to claim the credit. This new plan improves on the current $7,500 tax credit, which was passed in July and was more of an interest free loan than an actual credit. But it did not go as far as a proposed a $15,000 non-refundable credit for all homebuyers. According to the National Association Realtors, the $8,000 credit will bring an additional 300,000 new homebuyers into the market between now and its expiration on November 30, 2008 which should somewhat improve the housing market. In addition, a carryover effect may occur because each first-time homebuyer sale will lead to two more trade-up transactions down the line. As it will allow more existing sellers to sell their homes to potential first time buyers. The true impact is yet to be determined, but the credit is a step in the right direction to help further stimulate the housing market.
Overall Market. There were 5,434 closings in the month of December, an increase of 27.9% over the previous month. With 51,573 active listings currently on the market, this gives us an absorption or market supply of approximately 9.5-months of supply at the current rate of absorption.
Phoenix. There were 1,477 closings in the month of December, an increase of 39.7% over the previous month. With 13,365 active listings currently on the market, this gives us approximately 0-months of supply at the current rate of absorption.
West Valley. There were 1,511 closings in the month of December, an increase of 22.9% over the previous month. With 12,172 active listings currently on the market, this gives us approximately 8.1-months of supply at the current rate of absorption.
NE Valley. There were 424 closings in the month of December, an increase of 33.3% over the previous month. With 7,822 active listings currently on the market, this gives us approximately 18.4-months of supply at the current rate of absorption.
SE Valley. There were 1,468 closings in the month of December, an increase of 22.7% over the previous month. With 11,598 active listings currently on the market, this gives us approximately 7.9-months of supply at the current rate of absorption.
Scottsdale over $1m. There were 30 closings in the month of December, an increase 30.4% over the previous month. With 1,555 active listings currently on the market, this gives us approximately 51.8-months of supply at the current rate of absorption.
Scottsdale under $1m. There were 298 closings in the month of December, an increase of 29.6% over the previous month. With 4,189 active listings currently on the market, this gives us approximately 14.1-months of supply at the current rate of absorption.
Paradise Valley. There were 4 closings in the month of December, a decrease of 66.7% over the previous month. With 87 active listings currently on the market, this gives us approximately 21.8 months of supply at the current rate of absorption.
The comparisons of current active listings are based on the current inventory as of December 31, 2008. The absorption calculation is based on dividing the number of active listings by the number of property sold over a one month period. This data includes Single Family Detached homes, patio homes, condos, and town homes.
Phoenix is searched as a single entity. The West Valley is Surprise, Peoria, Sun City, Glendale, El Mirage, Youngtown, Litchfield Park, Avondale, Goodyear, Buckeye, and Tolleson. NE Valley is Scottsdale, Paradise Valley, Fountain Hills, Cave Creek, and Carefree. SE Valley is Tempe, Mesa, Gilbert, Apache Junction, Queen Creek, and Chandler.
Overall Phoenix Market Statistics
Monthly Report (2008)
The chart below indicates that as the average sold price decreases, the number of days on market is also decreasing. There is a direct correlation between the number of days a home will sit on the market and the asking price.
Thank you for visiting the Proposition 100 website. Proposition 100, The Protect Our Homes Initiative, is an important measure that will shield your home from real estate transfer taxes. Our campaign gives you, the voter, a unique opportunity to vote YES to say NO to real estate transfer taxes on the November 4, 2008 ballot. Please visit our site often to get the latest news and events. Sign up today to get involved or to volunteer!
What is a Real Estate Transfer Tax? A real estate transfer tax (RETT) is a state or local government imposed tax that is collected when you transfer ownership of your home, land or commercial real estate. Find out more The Problems With a Real Estate Transfer Tax: It Burdens Our Real Estate Market Further Causes Double Taxation Damages Equity by Punishing the Homeowner What is a Real Estate Transfer Tax? A real estate transfer tax (RETT) is a state or local government imposed tax that is collected when you transfer ownership of your home, land or commercial real estate. Typically, once the tax is initiated, the rate can be increased by the state, county or city at any time. Why are Transfer Taxes Proposed? Too often, this form of taxation serves as a new source of revenue to balance a government's bloated budget caused by overspending. Once this type of tax is put in place, not matter how low the tax rate is in the beginning, it always ends up being raised. What are the Problems with a Transfer Tax IT'S DOUBLE TAXATION! Governments already collect taxes on your property based on the property's value. This new tax would unfairly cause a second tax to impact your home or property. DAMAGES YOUR EQUITY! Since the tax is assessed against the total value including the amount you owe on your mortgage(s), the overall equity earned by the seller is decreased. SLOWS AN ALREADY SLOW MARKET! In the current slow market, a transfer tax would make it more difficult for people to buy or sell homes. Once a transfer tax is put in place, it can be raised at any time. This costs people buying or selling their homes even more money. PUNISHES THE HOME OWNER! A home is often the biggest and most important asset a person has in life. A transfer tax reduces the equity people have worked hard building. People already pay multiple taxes and fees on their homes. This tax will layer on one more significant closing cost you will have to pay. IMPACTS LOWER INCOME THE MOST! This tax imposes the higher tax burden on lower income households that typically spend a larger percentage of their income on their home.
Vote YES to PROTECT YOUR HOME on November 4th! While, Arizona currently does not have a real estate transfer tax, there is nothing that prevents a tax from being enacted at any time. With our current slow economy and budget crisis, it won't be long before cities, counties, and the state start looking for new sources of revenue. Enacting a real estate transfer tax is gaining momentum in Arizona. Just last year a bill was introduced in the state legislature proposing such a tax. Countless citizens' commissions and county reports mention a transfer tax as a possible source of revenue for the state. With the momentum for a real estate transfer tax growing, we must act now to put an end to this debate before it is too late! Join us in passing a constitutional protection that will stop real estate transfer taxes. VOTE "YES" on Proposition 100 on November 4th, 2008!
LANGUAGE ON PROPOSITION BALLOT: AN INITIATIVE MEASURE PROPOSING AN AMENDMENT TO ARTICLE IX OF THE ARIZONA CONSTITUTION BY ADDING A NEW SECTION 24 RELATING TO A PROHIBITION OF ANY NEW REAL PROPERTY SALE OR TRANSFER TAX IN ARIZONA. Be it enacted by the People of the State of Arizona: 1. Article IX, Section 24, Constitution of Arizona is proposed to be added as follows if approved by the voters and on proclamation of the Governor: ARTICLE IX, SECTION 24, PROHIBITION OF NEW REAL PROPERTY SALE OR TRANSFER TAXES THE STATE, ANY COUNTY, CITY, TOWN, MUNICIPALITY OR OTHER POLITICAL SUBDIVISION OF THE STATE, OR ANY DISTRICT CREATED BY LAW WITH AUTHORITY TO IMPOSE ANY TAX, FEE, STAMP REQUIREMENT OR OTHER ASSESSMENT, SHALL NOT IMPOSE ANY NEW TAX, FEE, STAMP REQUIREMENT OR OTHER ASSESSMENT, DIRECT OR INDIRECT, ON THE ACT OR PRIVILEGE OF SELLING, PURCHASING, GRANTING, ASSIGNING, TRANSFERRING, RECEIVING, OR OTHERWISE CONVEYING ANY INTEREST IN REAL PROPERTY. THIS SECTION DOES NOT APPLY TO ANY TAX, FEE, OR OTHER ASSESSMENT IN EXISTENCE ON DECEMBER 31, 2007. 2. The Secretary of State shall submit this amendment to the voters
Paid for by PROTECT OUR HOMES (AAR) IN SUPPORT OF PROP. 100. Major funding by the REALTORS® Issues Mobilization Fund.
President George W. Bush signed a historic economic rescue bill on Friday, which sets out to revive the U.S. financial system by allowing the federal government to buy up to $700 billion in failed mortgaged from banks and other financial institutions.
The president signed the bill shortly after the U.S. House of Representatives voted 263-171 today to pass the far-reaching legislation.
"This legislation is critical to stopping the economic turmoil that millions of Americans are facing," NAR President Dick Gaylord said in a statement. "Today's action will go a long way toward ending the current economic crisis crippling the housing and financial markets."
The legislation will help restore liquidity to the mortgage market, which will stabilize the housing market and protect home owners, Gaylord said.
President George Bush, along with congressional members, had lobbied throughout the week for the support of spending billions of dollars to buy bad mortgage-related securities from troubled financial institutions, as a way to ease the credit crisis.
The Senate revived the bill on Wednesday by making changes to the $700 billion measure, which was aimed at garnering more bipartisan support. The revised bill extended bank deposit insurance and expired tax breaks. The Senate passed its version of the bill in a 74-25 vote on Oct. 1. (see NAR Applauds Senate Stabilization Action).
Earlier in the week, NAR had called on its members to contact Congress to support the bill. NAR also teamed up with eight other business organizations to run an ad in major newspapers across the country that urged Congress to pass the recovery plan.
The latest and perhaps final version of $700 billion bailout legislation calls for the Treasury Secretary to implement a plan to stem foreclosures and to work with servicers to modify loans. However, how much the plan will actually help home owners is still of much debate. Since the bailout was announced a week ago, lawmakers and the Bush administration have tussled over how much to help borrowers who have fallen behind in their mortgage payments. In Sunday's version of the bill, federal agencies holding mortgages and mortgage securities would be required to identify loans that could be modified without causing big losses for taxpayers. However, exactly how that would be done isn't totally clear. In addition to the Treasury Department, these agencies would include the Federal Reserve, Federal Deposit Insurance Corp., and the Federal Housing Finance Agency, which controls mortgage insurers Fannie Mae and Freddie Mac. It also allows the Secretary to use loan guarantees and credit enhancement to avoid foreclosures, though on a press call Treasury officials declined to elaborate on these provisions. Servicers have been under pressure to modify loans since the mortgage meltdown began a year ago. However, they say the biggest roadblock to changing loan terms are the investors who hold the securities created from those mortgages. As the owner of a large number of mortgage securities, the federal government would have the power to modify more troubled loans, said Treasury officials. The government may also buy the mortgage loans themselves from banks, which it can adjust more easily. The government would try to avoid "preventable foreclosures" in a way that "makes sense for taxpayers," the officials said. "We will have a lot of influence," they added. The legislation also calls for changes to strengthen the Hope for Homeowners program to increase eligibility and improve the tools available to prevent foreclosures, but did not specify the enhancements. The Hope for Homeowners program, which begins Oct. 1, allows borrowers who can't meet their current mortgage terms to refinance into more affordable, fixed-rate loans backed by the Federal Housing Administration. However, not everyone is that optimistic about the bill. As Michael Calhoun, the president of the Center for Responsible Lending, said "There is nothing in the bailout that will mitigate widespread damage caused by foreclosures. The bill includes a vague provision that calls for the government to buy mortgages and securities and then try to modify them, but this will have very limited impact. It doesn't stop the epidemic that will continue to drag down property values for everyone."
What Else Do We Know About the Plan?
What is the Treasury asking for? The Treasury is asking for $700 billion to buy, own and sell mortgages and mortgage-backed securities. Under the Treasury's proposal, the Cabinet department would be able to buy these assets, sell them and use that money to buy more. The Treasury would have a two-year window to buy securities, beginning with the enactment of the law that would grant the Treasury these powers.
What effect will this have on mortgages? Conforming mortgages: For home loans of $417,000 or less that meet guidelines devised by Fannie Mae and Freddie Mac, the government-controlled housing finance giants. The plan will have little if any effect.
Mortgages are likely to remain available for qualified borrowers who get conforming loans, as long as they have sufficient equity. To qualify for conforming loans, borrowers might need to have equity of at least 5 percent or sometimes 10 percent or even 20 percent. The amount of necessary equity depends on where the home is, whether it's a condominium and other factors (such as credit history).
People who need to refinance, but owe more than their houses are worth, will not be helped by the powers the Treasury seeks. The Treasury's proposal isn't designed to bail out upside-down homeowners.
Jumbo mortgages: Home loans of more than the conforming limit. The jumbo limit varies, depending on location. In Arizona, it's any mortgage of more than $417,000. In expensive markets such as Los Angeles, it's a loan of more than $729,750. In some places, the limit is in between.
Jumbo loans, when available, have higher rates and fees than conventional loans. This is a result of the credit crunch. If the Treasury's proposal goes through, jumbo loans might become more available and affordable. There's no guarantee of that, though.
Federal Housing Administration Mortgages: The new bill will have negligible effect on FHA insured mortgages, as down payments will stay at 3% until January 1st, when the down payment will be upped to 3.5%. In addition, seller funded down payment assistance will still go away come October 1st.
Will the Bailout help me if I am behind on my mortgage payments? The short answer is, No. The Treasury plan is a bailout for financial institutions, not for homeowners who are in danger of losing their homes in foreclosure. However, Treasury Secretary Henry Paulson contends that the plan will help all homeowners in the long run. "The biggest help we can give to the American people is to stabilize the financial system right now and prevent it from clogging up," Paulson said. Paulson added: "We've been working to help homeowners for a long time. ... It sure seems to me that, as we buy these mortgage-backed assets, we'll have more leverage in working on the kinds of programs we need to work on. The key question is we want to help those homeowners who want to stay in their home and have the financial ability to stay in their home." So far, Paulson said, most foreclosures are from people who don't want to stay in their homes or never could afford their homes "as a result of irresponsible lending practices."
Will the plan help to stabilize falling home prices? No, and the plan is not designed too. Though, it may help reach a housing bottom sooner rather than later and that would be a good thing for real estate in the long term.
How does the Treasury's proposal differ from the Resolution Trust Corp. of the savings-and-loan crisis of the 1980s? The Resolution Trust Corp., or RTC: · Sold real estate. · Sold the real estate from failed financial institutions. The Treasury: · Doesn't plan to sell real estate. · Its ultimate aim is to prevent financial institutions from failing. Instead of taking and selling real estate, the Treasury plans to buy and sell mortgage-backed securities and possibly mortgages themselves. The goal is to get bad mortgage-related debt off the books of financial institutions all over the world. That, in turn, is supposed to increase the confidence that financial institutions have in one another so that they'll lend money among themselves. The result is supposed to be a stronger global financial system that freely lends to consumers and businesses. For more information on what options you have as a home owner to save your home, please contact Bill Kamboukos and Carlos Felix of Strategic Mortgage at (480) 219-3682 or by emailing: info@strategicmtgaz.com or online at www.strategicmtgaz.com
One of the lenders I work with came across this program today for Canadians:
Canadians can purchase a home in the US as a "second home" Here's what's needed: 75 LTV (25% down) International Credit Report Verification of Mortgage on Primary Home Last 2 paystubs and 2 years T4's (w2's) 2 months bank statements Picture ID (DL or passport) Self employed borrowers need last 2 years Canadian Tax Returns, along with a porfit and loss statement and balance sheet. Loans are Full Documentation
Congressional leaders and the Bush administration are working with Treasury Secretary Henry Paulson and Federal Reserve Chair Ben Bernanke to prepare a massive intervention to revive the U.S. financial system.
The proposed plan reportedly includes using hundreds of billions of dollars in government funding to buy bad loans, leaving banks with more money and fewer problems and allowing them to again lend money.
Paulson and Bernanke urged lawmakers to approve the plan rapidly, presenting what some described as a "chilling" picture of the state of the financial system.
Congressional leaders were told that the consequences would be grave if the legislation doesn't pass by the end of next week.
Taking over Fannie Mae and Freddie Mac, creating a new source of funding for investment banks, and assuming control of insurance giant American International Group obviously hasn't been enough to end the crisis. It hasn't stopped $79 billion in withdrawals from money-market funds, which are a critical source of funding for the U.S. financial system.
"The costs of doing nothing are enormous," said Rep. Barney Frank (D-Mass.), chairman of the House Financial Services Committee.
Source: The Washington Post, Binyamin Appelbaum and Lori Montgomery (09/19/08)
Why Now is the Time to Buy (in the Phoenix Metro atleast!)
Seller's Market (+)
Most People purchase real estate on "this side of the curve" in an increasing market. In this market it is known that prices have "bottomed out". Sellers are aware of this and are less likely to negotiate on price and terms. Seller-paid closing costs are becoming increasingly less, inventory is declining and buyers are settling for a home that "will do" instead of the home they want. Interest rates may or may not be lower than they were in the buyers market.
Nobody's Market "Bottom"
Buying at the bottom of the market is an illusion. The bottom of the market can not be known until after prices significantly begin to increase. Additionally this "bottom of the market" does not exist in time, but is merely the difference between a Buyer's market and a Seller's market.
Buyer's Market "-"
Experienced investors will purchase real estate on "this side of the curve" in a declining market. As prices approach the bottom, interest rate risks are known and minimal: Sellers are inclined to negotiate a more favorable transaction for the buyer, resulting in lower prices and more seller-paid costs. Inventory is greater, which allows the buyer more choices and negotiating power.
Now, the EXCITING News...
** Sales have been on an upward trend since January, after the sharp decline with the mortgage bust last quarter. Here's the interesting part... historically sales have been higher January through March, then DECREASE in April, before increasing again in May. As of Friday, April 25th 2008, closes and pendings continued their INCREASE, and are at the highest level in over 2 years. Pending sales are up 3% since last week. Inventory continues to decline as well. This is a VERY positive sign that the market has rebounded.
** For the first month since July of 2007, the median price range has remained STABLE at $220,000.
** Maricopa County has lead the nation 2000-2007 for population growth adding 808,000 New residents.
** Unemployment in the Phoenix Metro is amongst the lowest at 3.5%, with the National average at 4.8%. Job growth has remained strong adding 25,300 jobs last month, while there was an overall loss at the national level.
** Phoenix ranks 3rd for the lowest stress level among the Nations Major Metropolitan area (Best is Virginia Beach/Norfolk, worst is Detroit, Cleveland, St. Louis, Riverside & LA.). This is based on robberies, murders, unemployment, income growth, Long-distance commute, families below poverty level, mortgage payments, and death.
** The National Association of Realtors chief economist Lawrence Yun has shared his projections for our housing market as it ties to increasing rents and home sales. One of his predictions is for Arizona to emerge as a market where investors can be "covered on both sides" meaning that it will be possible to both cash-flow a rental home while also seeing the home values appreciate. Understandably, he believes Arizona will be "the hotbed of the real estate market" within 5 years.
Increasing rents + Decreasing home prices = Increased profitability from your Real Estate Investment.
** One of the Mortgage brokers I use has had 3 banks change their Phoenix Guidelines last week from being a declining market to a stable market. They raised their limits on owner occupied loans from 95% back to 100% in AZ. Also, 3 other banks increased their cash out loans from 70% to 80%.
Concluding
THERE IS NO BETTER TIME TO BUY THAN RIGHT NOW! The upward trend in closes, pending sales and prices in an area with strong job and population growth, stable economy and great weather...what are you waiting for?
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
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