Our Current Phoenix Real Estate Market – What should a Buyer Do - Optimism vs. Prudence? There is no doubt that the Phoenix real estate market is plagued with an oversupply of Phoenix homes for sale and has caused buyers to pause. Yet, every time a buyer tells me a few of their home wants and needs – location, price, bedrooms, number of levels, garage, pool, an office, family room or whatever; they are stunned that the list of possible homes similar to what they want only contains 10 to 20 homes. This is before we look at position, condition and proximity. Having this many homes to select from is so much better than a few years ago, yet this is far less than the number of homes the buyer expected – hundreds short of what they expected.

The consensus is prices will fall further, but the number is far less than you think. Experts say 3-4% lower – not 10 to 20% buyers hope for. Is this enough to put off your life? I suggest not. I can negotiate a discount that will put you below the expected price decline and have you in position to enjoy our typical 7 to 9% annual appreciation when Phoenix real estate market conditions turn around and favor the seller again.

Here’s a surprise! The MEDIAN Phoenix home price is back up from its lowest level of $247,900 in February 2007 after reaching the highest MEDIAN Phoenix home price of $264,800 in June 2006. We are now at $255,000 in June 2007 - the same as it was last month in May 2007. Also factor in Phoenix summer housing prices typically dip as people vacation in cooler climate conditions.

Contact me to see how many homes meet your needs and take advantage of the choices you have now, but may not have later on. This may be the best time to buy your Phoenix home.

Sam Elam
Associate Broker
ABR, CRS, GRI, e-PRO
RE/MAX Achievers
Phoenix Arizona area
Sam@SamElam.com
http://www.SamElam.com

Having Problems Making Your House Payment
Since Your Sub prime Loan Adjusted?

Help is on the way for homeowners facing house payment shock as their adjustable sub-prime mortgages are starting to adjust to current market rates. As evidenced from the statements made in Washington D.C. in April 2007, the Feds are aware of and are taking steps to help homeowners with sub-prime, adjustable rate mortgages (ARM) and keep them from going into foreclosure by making available fixed rate loans that are easier to qualify for and cost the borrower very little more per month.

What you need to do is contact a very knowledgeable and reputable lender (probably not the one who put you into a sub-prime ARM in the first place) and tell them you want more information about the Fannie Mae "Stayhome" loan program that makes it easier for you to get out of your current sub-prime ARM and into a fixed rate loan (30 - 40 year fixed rate loans).

Not sure who to call for help. Go to my Local Partners button at www.SamElam.com and look under Lenders or let me know you need a couple of lender recommendations and I will get them for you.

Save your home and your credit score. Act now and get into a fixed rate loan now made easier to qualify.

Sam Elam, REMAX Achievers, Phoenix real estate agent

Arizona is a deficiency state - meaning lenders can sue you to recover any losses due to your default on your loan after they seize your home and sell it at auction. The Arizona legislature passed a law that protects you  against deficiency judgment resulting from your default on your initial home purchase loan.

If you later refinance the loan you used to purchase your Arizona home, the deficiency protection you had is now gone. Ignoring the lender and letting them take your home is not the end of the problem. Even if the lender is barred from or decides not to get a deficiency judgment against you, they will send a 1099 to the IRS for the amount of your DEBT RELIEF (equal to their loss) after the home is sold at auction. And that amount includes all of the legal and administrative fees as a result of your default in addition to any unpaid principle and interest, taxes, insurance they keep paying, etc.

As soon as know you are in trouble and can no longer pay your house payment, you must call your lender to explain your situation. Start the dialogue. Don't hide. Lenders will take into account severe hardships that are out of your control - loss of job, divorce and serious medical issues being the top three worse occurrences in anyone's life. They will work with you to come up with a long term workout program so you can continue living in your home and eventually pay back the delinquent payments.

Your best option is to call a professional Realtor with years of workout experience with lenders, as I have, to get your home on the market and sold before deferred interest resulting from non-payment, late charges, legal and administrative costs start adding up and you loose your home through foreclosure. If the lender is sympathetic, they may agree to work with us to accept less than full payment  of your loan to comply with the terms of the new buyer and avoid having to foreclose on you. The added benefit to you is your credit history will look much better than having a foreclosure.

The worse thing a homeowner in trouble can do is move out of the house. Don't abandon your home. The lender is much more comfortable having you live in and continue to take care of the home. They don't want your home vacant and vandalized. Stay put, call them, authorize your Realtor to negotiate with the lender, get the home on the market at or below market value. We are all here to help you through this crisis the best way it can be done.