Could buying Metro Phoenix foreclosures get easier? 15 day "First Look" program
My trusted Phoenix area loan officer, Craig Bohall, Academy Mortgage, craig@myazmp.com alerted me to this. Simple answer: HECK YES -- if we could cut out the government's addictive overdosing of regulations that have been piled on like a 7 layer bean dip. But, since that is not going to happen any time soon we can take joy in small victories like this 15 day "First Look" program.
The government-run Fannie Mae has come out recently with a plan to keep investors away from their foreclosures for 15 days and allow the average Joe/Jane a first look and opportunity to get in their offers before investors. A reporter from the AZ Republic (serving the Phoenix area) had this to say regarding this announcement...
"Arizona home buyers trying to tap federal funds to help them purchase foreclosure homes might find it a little easier now. Mortgage giant Fannie Mae recently launched a program called “First Look” that bars investors for bidding on its foreclosures for the first 15 days they go on the market. In metropolitan Phoenix, first-time buyers typically lose out to investors on the best foreclosure homes. "
To read Catherine Reagor's full story click here http://www.azcentral.com/members/Blog/CatherineReagor/63525.
Is this good or bad? Well depends whether you are Joe Average or Jane investor buying Phoenix foreclosures doesn't it? On the one hand poor Joe Average was previously getting beat out on the 60K home in Phoenix when he offered 62K. That's because a cash investor was there who could close in 48 hours while the Joe Average will need 30 days to close through his lender. On the other hand, without Jane investor helping to stop prices from falling and even create some bidding wars for Phoenix foreclosures we could be left to the pricing "mud-slide" we saw for months on end!
On the one hand, Jane investor can buy 20 Phoenix foreclosures and Joe Average can only buy one foreclosure, so who is helping the economy and helping to reduce inventory more? But we Americans sooooo love to find something that seems unfair and get the government to regulate it.
But on the other hand, if the government is going to give federal funds ONLY to Joe Averages (no investors) they should have some say in letting Joe Average "to the dance" 15 days before investors swarm in on Phoenix foreclosures and give Joe Average a first look.
Yet, on the other hand, if they let free market principles work the highest bidder gets the foreclosures. Maybe the investor wants a great deal and bids 60K while Joe Average out bids him with 65K or 69K. Would that make our housing market rebound and get normal sellers back in the market sooner? Will that allow the market to run on it's own again instead of this "propping up" that we have now.
However, on the other hand... I am out of hands. What do you think about the 15 day "First Look" program and it's effect on Phoenix foreclosures?
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