Archive for June, 2010

Fannie Mae To Deny Loans to Homeowners Who Walk Away.

by: Maria Hass

Bloomberg.com reported an article on June 23, 2010 which announces that Fannie Mae will temporarily deny new loans to homeowners who walk away. The recently acquired government owned mortgage giant which holds 80% of all mortgage loans stated that, new loans will not be approved for seven years to anyone who deliberately walked away without working to restructure their loans.

I am uncertain whether this denial is aimed at ALL homeowners who failed to apply for a loan modification. What about those homeowners who pursued a short sale? Some homeowners sell their home because they are relocating, the home is too far from work or financially hard up. Careful consideration as to why the homeowner did not apply for a loan modification has to be weighed and each case has to be looked at individually. While it is not right for homeowners to walk away only because the market value has gone down by 40% to 60% in Arizona, it is also inconsiderate for lenders to leave homeowners upside down without reducing their principal mortgage to what is realistic. It will take 15 to 20 years based on a national appreciation of 3%-5% for most homeowners in Arizona to get even with what they owe. If they sell before that, they will have to short sale anyway down the road because they are still upside down. This will slow down the housing recovery which is not helpful to the economy.

For a complete story, click on http://www.bloomberg.com/news/2010-06-23/fannie-mae-to-deny-new-loans-to-homeowners-who-walk-away-from-their-homes.html/

June 26, 2010 at 1:59 pm Leave a comment

Home Buyer Tax Incentive Extended

The Senate on Wednesday approved a plan to give homebuyers upto September 30 to close on a home instead of April 30 deadline originally planed. The three month extension would allow lenders who are behind on their loan applications to complete the loan. This would also qualify first time homebuyer’s for the $8,000 tax credit incentive.
The move by Senate Majority Leader Harry Reid was approved by 60-37 vote and would allow home buyers who already have signed contracts to finish at the later date. About 180,000 homebuyers who already signed purchase agreements would otherwise miss the deadline.

June 17, 2010 at 9:31 pm Leave a comment

Short Sale Etiquette

By: Maria Hass

What? Whoever thought there was any?
One could almost tell an abandoned home just by looking at the curb appeal – because there is none. Home owners of vacant short sale homes either don’t have the money to maintain the property or just plain don’t care — the latter being more common. So, the weeds grow, the bushes crawl every direction, the pool turns black, and who knows what other secrets lurk inside. Most of the time, people who leave their homes don’t care what happens to the house and the HOA and the neighbors are left to clean up after them.
Unless penalties are imposed by law to summon these homeowners to court or pay the fine, common courtesy alone will not turn these practices around. There are a few good people still around, but for the most part our society has evolved into a culture of “I don’t care.”
As a Realtor with great experience in short sales, I advise my clients to get the home looking nice and clean in order to facilitate a good offer fairly quickly. This strategy to show the home only when it is ready has paid off and saved my clients time and money. If for some reason the client does not care about how the home looks, it’s frankly better for me to drop the listing. If the seller does not care about his or her home, why should I?
Short sale etiquette means common courtesy and respect for others. It means cleaning up your front yard, house and pool and not stripping the house of its original accessories. After all, In a short sale, the home owner still owns the home and is responsible for the condition of the home.

This short sale etiquette may not exist in homeowners who made bad decisions during the real estate boom or primary residents victimized by greed, but it does exist in those whose core values of doing what is right reign supreme.

June 14, 2010 at 10:24 pm Leave a comment

West Chandler is Chosen Best for Home Values

by: Maria Hass

West Chandler was recently voted as one of the best neighborhoods in the Valley for home values. This recognition was awarded by http://www.NeighborhoodScout.com, a real estate website.

I was not surprised upon hearing this announcement. The award-winning West Chandler area borders Chandler Boulevard to the north, Loop 202 to the south, and Kyrene and McClintock to the west and east, respectively. This area of Chandler is less than 20 miles from Downtown Phoenix and the Airport and features an abundance of parks and recreation, bounded by the reknowned Kyrene School District.

The area is surrounded by higher priced areas including Ahwatukee to the west and Tempe to the north. It provides easy access to the 101 to the east, I-10 to the west and Loop 202 to the south. Surrounding Ahwatukee and Tempe home values are higher than in Chandler, which is hovering around $100/sq.ft. This offers great savings if you are looking for an affordable area that provides excellent quality of life and a great location.

For the full story, click here: http://www.abc15.com/dpp/news/region_southeast_valley/chandler/chandler-neighborhood-chosen-as-best-in-valley-for-home-values

June 8, 2010 at 8:14 pm Leave a comment

Realty Executives Sues Former President

Who ever thought that it would come to this? Realty Executives owner Rich Rector is suing the Designated Broker and former President John Foltz. It is a story of more than a decade of a great working relationship that turned sour.
I was a full-time Realtor with Realty Executives for four years before switching to HomeSmart. I had no idea this was brewing. I wish the best for Realty Executives’ agents, regardless of the outcome of the complaint.
For the full story. go to http://www.azcentral.com/business/articles/2010/05/28/20100528biz-foltz0601.html.

June 1, 2010 at 1:16 pm Leave a comment


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