GOVERNMENT FORECLOSURE RESCUE PROGRAM – HAFA

Cromford Report, a highly recognized real estate market tracker reports that the number of active short sales in the Multiple Listing Service (MLS) in Metro Phoenix have increased by 35% compared to last year from 11,992 on May 8, 2009 to 16,326 yesterday.

To help homeowners who are unable to keep their homes under the Home Affordable Modification Program, the Home Affordable Foreclosure Alternative (HAFA) program may make a short sale or a deed-in-lieu of foreclosure a viable option to help them avoid foreclosure. The HAFA Program, which took effect on April 5, 2010, provides servicer, seller and junior lien holder incentives for these transactions and is designed to simplify and streamline use of short sales and deeds-in-lieu of foreclosure.

To understand the HAFA program, click on the link below to watch the video.

http://link.brightcove.com/services/player/bcpid1465406675?bctid=75779465001 . You may also go to Nar.org for more information.

Time will tell if HAFA will hold any promise. Earlier the government initiated loan modification rescue plan dubbed as Home Affordable Modification Program or HAMP helped almost no one. The failure was largely due to the fact that lenders are not obligated to join the program and HAMP qualifications apply to only a few. If HAFA makes sense or should I say, “cents” to the lenders and is effectively executed then perhaps, we will see the goal of expediting short sale come to fruition. Thereby, truly helping distressed and troubled homeowners.

New Loan Modification Software Launched

Last week in Phoenix, I witnessed the launch of a new software program called “Loan Mod Exposed“. For much less than what a home owner would normally pay a professionally negotiator, one can purchase this do-it-yourself software. The software is able to determine if your financial situation is a strong candidate for a successful loan modification or if you are a candidate for denial.

The software CD-ROM comes with a book and walks the home owner through filling out the different documents required by your particular lender to process a loan modification, similar to what Turbo Tax or Tax Cut software would do for taxes. It makes you aware if dollar amounts you enter do not make sense or need recalculation. If your financial profile does not fit the criteria set forth by your lender to approve a loan modification, the software provides you with suggestions on how to adjust your numbers to conform with your lender’s requirements.

This software is the first that I have seen in this arena. It’s interesting and exciting to know this new program exists, especially for those who are thinking of a loan modification and don’t know what first steps to take. This software hopes to educate homeowners regarding their lender’s guidelines prior to seeking the assistance of a professional negotiator. Eventually, this can save the homeowner money if he or she decides to take on responsibility for the documents all the way to the lender.

Only mortgage brokers and lawyers are qualified by law to negotiate loan modifications on behalf of home owners. Realtors are not qualified to modify loans; however it is acceptable for the home owners to negotiate their own loan modification with their lender.

The new Loan Mod Exposed software will be available for sale soon. For more information about this new program, contact Duc Nguyen at (520) 977-3853 or email duc@cenpaco.com.

Light Rail Musings

I am proud to be a part of history today. I rode on the Phoenix area’s first ever light rail line from Mesa to Phoenix. Dec. 31, 2009, was the last of five days to ride for FREE on what’s been dubbed “Metro.”

I wanted to experience the benefits resulting from our tax money and also explore real estate opportunities along the light rail transit route. I saw many apartments along the line in the town of Tempe and new condominiums just finished in Phoenix. While aboard the shiny new train, I told myself it would be a good decision to invest in a property in the Tempe/Phoenix area close to the light rail line.

The prices are very low and the interest rates are historically low as well. You can buy a lot of house for very little money. Rental demand in this area is high, as it is close to downtown Phoenix, Sky Harbor Airport, Arizona State University and several freeways, to name a few.

My family and I boarded at the Apache Blvd. and 101 Freeway stop. It was the third stop going west to Phoenix, and the train was already packed with passengers. There were no empty chairs to sit on and you had to grab a post before someone else did to keep your balance. The train ride was smooth.

The line runs from Main Street and Sycamore in Mesa to Montebello and 19th Avenue in northwest Phoenix. I certainly hope, based on our initial experience, that the Metro will expand someday soon to include routes that will connect Chandler and Queen Creek in the East Valley to the Glendale area in the West Valley. The Metro is a benefit to Metro Phoenix residents, businesses, tourism, real estate and a great way to use taxpayers’ money. (For a brief video I shot at the Mesa station where we boarded, click here – several other area residents have also documented their light rail experiences on YouTube, as well.)

Cash Back Deal – Too Good To Be True?

I came across a first-time home buyer the other day. He has indicated to me that a real estate agent from a prominent online real estate company promised him $1,500 cash back in the form of a check after buying a home with him.

My initial reaction was, that doesn’t seem right. By that, I mean, it doesn’t seem legal. So, I went ahead and did some further investigation. I called my broker at Realty Executives and left a message regarding the legality of such incentives. My broker called back and said, “Only if the lender allows it, can a cash back check be allowed. If the lender disapproves of it and the check transaction still existed, then it is considered lender fraud.” Nowadays, due to tight lending guidelines, lenders will not approve this kind of a deal.

The loan application Form 1003, which is filled out by the borrower, stipulates this regulation. Further, Title 18 of the United States Code, Section 1001, addresses the provisions and criminal penalties of fraud and false statements.

The bottom line is on these cash back incentives is that the lender (the bank that funds the loan) should be informed of the “true nature of the transaction.”

Whenever the lender is not informed in writing of the true nature of the transaction, the transaction is illegal. And if you go along with the scheme, you become an accomplice, subject to prosecution. A legitimate cash back incentive by a builder, Realtor or seller usually appears in the HUD statement prepared by a neutral title company, although giving a cash back check to the buyer after closing is not a common and acceptable practice.

So, what should you do if you sense something isn’t right? Call your lender immediately and let them know. They will be happy to receive your phone call.

Metro Phoenix 2008 Real Estate Statistics and Short-Sale Interesting Revelations

Metro Phoenix Statistics

Did you know that …..

· The average number of days on the market for homes to close was 108 days in January 2008 and 75 days in October 2008?

· Homes sold for 94% of their list price in January 2008 and 96% in October 2008?

· The number of homes sold via MLS was 2,900 in January 2008 and 53,008 in October 2008?

· The median price for a home in Metro Phoenix was $314,000 in January 2008 and $211,000 in October 2008?

Short-Sale Revelations

Did you know that….

· The typical workload for a loan mitigation officer at GMAC Bank is around 500 files, combined loan modification and short-sales?

· At one point Countrywide had more trainees than seasoned staff assigned to decide the outcome of loan modifications and short-sales?

· At some major banks, an employee being paid about $10 an hour decides on the future of families needing assistance with paying for or selling homes valued at up to $500,000?

Merry Christmas or Happy Holidays – What’s the Difference?

I was doing a Google search today and found myself not knowing the best keywords to choose to find a list of community programs for this season of giving. I wondered, should I be searching under “Christmas” community programs, or should I search under “Holiday” community programs?

It was just a few years ago when the game of “political correctness” reached widespread proportions threatening to change the meaning of a very special season once simply called – Christmas!

Nowadays, because of fear, or the need to please others, or the sense that we must be very courteous not to offend other people not celebrating Christmas, the word “holiday” is increasingly being used to mean Christmas!

History tells us that the origin of the word CHRISTMAS was taken from CHRIST. Christmas is a celebration of Christ’s birthday. Christ is the essence of Christmas. He was, is now and will forever be the reason for and meaning of Christmas and the Christmas season.

To change that to HOLIDAY departs from the true meaning and purpose of this special celebration. The word HOLIDAY by definition means any day of exemption from work to honor an event or a person. By using “Happy Holidays” to mean “Merry Christmas” is putting Christ on equal footing with every mortal being for whom we celebrate holidays, such as George Washington, veterans, laborers or Martin Luther King, Jr. Reducing acknowledgment of Christ’s birth to the level with which we honor a once-great person is dishonoring the one that is above all men.

Unfortunately, many businesses that are afraid to lose customers casually promote “Happy Holidays” within their billboards and ads. Some people go through their lives following the rest of the followers. If this evolving tradition continues without resentment and protest by individuals, we will hear our children’s children sing “Merry Holidays,” or “I’ll be Home for the Holiday,” or “The 12 Days of Holiday”. The new songs will be revised to, “It’s Beginning to Look a Lot Like a Holiday,” and “I’m Dreaming of a White Holiday.”

People dictate what is acceptable behavior for society, and unless we begin with ourselves, this relatively new tradition of “Happy Holidays” will be the direction of our future generation. It is sad and one I hope will go away.

So, if I greet you with a “Merry Christmas,” it is not meant to offend, but rather to respect and honor the true celebrant of the occasion and the reason for the season – Christ, the Lord.

Merry Christmas to you!

Is Race a Factor in the Upcoming November 4 Election?

I was watching CNN late last night. Anderson Cooper’s popular news program reported what people think about race as a factor in the Nov. 4 election.

Seven out of 10 Americans questioned in a CNN/Opinion Research Corp. survey released Friday said the race of the candidates will not be a factor in their vote for president this year.

That 70 percent figure is up 9 points from July, when the same question was asked. Only 5 percent of those polled said race will be the single most important factor in their choice for president, with 11 percent saying it’s one of several important factors, and 13 percent indicating race will be a minor factor in their vote.

Honestly, I am so tired of the media reporting about race as an issue in any decision that anyone makes in this nation. I have never heard so much discussion about a person’s skin color being seen as an influencing factor of his worth — even worse, as a determining factor of how a person would act in the future.

It is time for America to wake up to become a color-free society. By that I mean, people should be looked upon based on their character, experience and knowledge and not judged by the color of their skin.

It is time for politicians to refrain from legislating policies that differentiate people by their ethnic diversity. Honoring diversity in large proportion is also promoting segregation between races.

It is time for the media to educate its viewers, listeners and readership that people’s perception of others should be based on the content of their soul and not the color of their skin.

To move us forward as a nation, let us look at the common features that unite us and bind us together and not dwell on things that differentiate us. As human beings, we all long to be loved; we all long to be respected; we all want a safe place to live. We wish for a clean environment and to be assured of our nation’s security. These aspirations and desires should be the driving force that should move us ahead as one nation.

Calling All Voters!

There was a low turnout of voters in last week’s September 2 election.  I’m proud to say that I was one of the few American citizens who exercised her right to vote.  Many did not even know there was an election going on.  Despite a busy schedule, I went to the polling place to vote to influence the future of our nation and the City of Chandler, where I am a resident.

I was particularly interested in influencing the outcome of the three open City Council positions for the City of Chandler.  There are six candidates for the positions.  I watched the six answer questions at an excellent open round table discussion hosted by the City and aired on Cable Channel 11.  Based on this telecast, I voted for Matt Orlando, Rick Heumann and Jack Sellers.  However, after the votes were tallied, all candidates where short of the required minimum of 50% vote, so the process will be repeated  in the Primary election in November 2008 — thanks to all of you who did not show up!

It is sad that many of our countrymen would rather attend a sports event and pay lots of money to do so than to visit a polling place to bring about change.  The future of our nation is in our hands.  And one person can make a difference!  Just as the once successful singer Michael Jackson said in his song: “If you want to make the world a better place, take a look at yourself and make a CHANGE!”

Now is your chance to make a change — take the chance before it’s too late. On November 4, when you cast your vote, vote YES on Proposition 100 – “Protect Our Homes.” A YES vote means saying NO to establishing a real estate transfer tax in Arizona.

If you don’t show up to vote, be ready to pay a real estate transfer tax in the near future.

A positive turn in real estate sales – Has the market hit bottom?

Somewhat surprisingly, The Arizona Republic published a positive front-page story this week about an upswing in real estate sales.  Click here to read article in full.

The article is optimistic that a continuing increase in home sales and decrease in inventory will mean that we hit bottom soon.  But in reality, nobody really knows when the bottom will be reached — until we have long passed it.  It takes several months of consistent upward trends in sales and decreases in inventory to figure it out. 

To those buyers who are sitting on the fence, waiting for home prices to come down further, here are two things worth looking at:

1.  Purchasing a home is not about the market.  It is about your strategy.  Real estate investment is a long-term investment – not a short-term, get rich overnight scheme.  If you intend to buy a property with the strategy of holding onto it for at least five years,  you are in great shape.  Otherwise, be prepared to possibly lose money.

2.  Do not let greed overwhelm your goal of home ownership.  You may end up with nothing and lose the house you really want.  In this market, if you like the house and get a good deal, buy it!

Planning to buy a home soon? Please RSVP for our free seminar!

If you’re considering buying your first home in the current buyer’s market, you can learn tips on how to save money using special finance options or government grants during a free one-hour seminar I’m pleased to be hosting soon in Ahwatukee with Mike Huberty of Mesa, Vice President of Suburban Mortgage, Inc. 

The seminar will be held at 10 a.m. Saturday, April 5, 2008, at the Ahwatukee Realty Executives office, the Realty Executives offices, 4435 E. Chandler Blvd., Suite 200 (Corner of Chandler and 45th Street).  

Mike will share important information, including:

* How to save money using a goverment grant for down payment
* First-time home buyer financing options
* How to improve your credit prior to buying a home
* Question and answer session 

Seating is limited, and advanced registration is required.  Please call or email me at (480) 650-0075 or via email at MariaHass@realtyexecutives.com by Monday, March 31, to reserve your spot.

Maria Hass
Your “Hassle-Free” Realtor
Realty Executives
920 W. Chandler Blvd., Suite 1
Chandler, AZ 85225
Bus. (480) 963-6000
Cell: (480) 650-0075
Fax: (480) 786-3108
mariahass@realtyexecutives.com

www.MariaRealEstate.com