Arizona

As a Realtor you know there is nothing short about a short sale. In fact, its not uncommon for a short sale to take over 6 months to finally close, that's IF it's approved. A lender will sometimes authorize a short sale if:

• The Mortgage Value has dropped
• The Mortgage is in or near default
• The seller is experiencing a Hardship (Unemployment, Divorce, Bankruptcy, Illiness)

Because there is sometimes no rhyme or reason to a short sale, there are many scenarios where the seller offers their home for short sale, a ready, willing and able buyer is found but while waiting for bank approval, the home is lost to foreclosure. This problem will only be exacerbated by the number of Adjustable Rate Mortgages adjusting in 2010. Any Realtor experienced in short sales will tell you a lenders' tendency to not respond to short sale purchase offers as the biggest reason for failed short sale property sale closings which often lead to foreclosure.

But wait..whats that? Is it a bird? Is it a plane? NO it's HAFA! HAFA is not a new superhero although some distressed sellers and Realtors may believe it is. HAFA stands for the federal Home Affordable Foreclosure Alternatives Act and will become effective on April 5th, 2010. Among other things, HAFA:Read More

Valentines Day 5 Days and Counting!

The time just slips away and you could be wondering what can I do that is different? 

My friend Tim Wilson was looking for posts with Valentine ideas and I haven't seen many so here you go Tim! 

You can create you own slide show with pictures of you and your sweetheart or whoever you want! 

It's easy and Free!  Just go to www.Slide.com  register and away you go! 

Now buy a bundle of flowers from Safeway or the local grocery store and save money.  Go to TJ Max, Ross, Pier 1 or some discount store and get a beautiful vase!  Put those bright colored flowers or even the rose specials in the beautiful vase.. and you are set! 

Wait there is more.. with the money you saved on the flowers... you have can purchase a wonderful fragrance.

My favorite perfumes:

Issey Miyake 3.3 ounces about $100

Chance by Chanel 3.4 ounces about $98

Private Collections by Estee Lauder 2.5 ounces about $56

Of course you dressed up in a bow is always a hit! 

Have a wonderful Valentine's Day!  Share the LOVE!

Breaking down the finances in a residential purchase contract can be overwhelming, even for those mathematicians amongst us. For the first-time home buyer, interpreting Section 2 of Arizona's Residential Purchase Contractcan be about as appealing as scooping kitty litter. Verbiage such as "discount points", "A.L.T.A. Lender Title Insurance Policy" and "loan contingency" might as well be written in Chinese symbols, and as agents, we often get lost in our own word vomit as we try to piece it all together for our glazey-eyed buyer. So, tonight we will break down Section 2 of the purchase contract, in terms even my basset can comprehend.

2a. Loan Contingency: A loan contingency is just what the name suggests. Before the close of escrow can occur, the buyer's financing must be secured. If the buyer is unable to obtain financing without conditions before close of escrow (commonly referred to as COE), then the buyer is obligated to deliver notice of this event to the seller or escrow (title) company. This must be done before the close of escrow date, and as always, timeliness in a real estate transaction is of utter importance.

2b. Unfulfilled Loan Contingency: The buyer may be entitled to a refund of his or her earnest money at this point in the transaction, if the buyer has given every effort on his or her behalf to obtain the loan (i.e. has cooperated with the loan officer in obtaining the paperwork necessary to complete the transaction, etc.). This does not include a lack of funds on the buyer's behalf to come up with the down payment, or other fees necessary to close the transaction.

2c. Appraisal Contingency: A successful close of escrow is also dependent on the home's ability to appraise for the amount the buyer has offered to pay for the subject property. If the home fails to appraise (which can be common in an area deemed as a "declining market", like most of Maricopa County), the buyer has 5 days after receiving notice of the appraised value to cancel the contract and be entitled to a refund of earnest money. If the buyer fails to cancel the contract within this period of time, he or she may not receive their earnest money. Again, time is of the essence.

2d. Loan Status Report: Commonly referred to as the LSR, the Loan Status Report is submitted with each offer in which the buyer is obtaining financing (i.e., a mortgage). This form originates from the buyer's lender, and contains information about the type of loan to be secured by the buyer, such as the loan type (conventional, FHA, VA), and terms (number of years, fixed or variable rate, etc).

2e. Loan Application: The buyer's loan application must be completed within 5 days of contract acceptance. This will be discussed with the buyer by his or her lender at the beginning of the home-buying process. It is vital that the buyer know how important it is to get the lender the information and documentation necessary to complete the financial aspect of the transaction in a timely manner. It is important during this time for the buyer to remember that he or she is approved to purchase a home based on one's current financial situation. It is not a good idea to make any major purchases between the time one is pre-approved for a home loan, and the close of escrow. Large purchases could affect one's debt-to-income ratio, and ability to be qualify for the loan.

2f. Loan Processing During Escrow: During this period the buyer agrees, as stated previously, to work diligently to obtain all documentation necessary to secure the loan in a timely manner.

2g. Type of Financing: The buyer's loan officer will assist him or her in determining which type of financing to obtain. There are several different loan options available in today's market, and there is not one best fit for everyone. One tends to try on loans and loan programs kind of like one tries on dresses before the prom. Not every style works on all body types.

2h. Loan Costs: In my personal experience, this is one of the most difficult aspects of the financing section. Here, it is important to understand the verbiage and terminology to understand who pays for what.

• Discount pointsare prepaid interest on the mortgage loan. The more points the buyer pays, the lower the interest rate on the loan, and vice versa. Buyers typically can pay between 0 and 3 or 4 points, depending on how much they want to lower their rate.
• Loan Origination Fee: This is the fee charged by the lender to cover the costs for making the loan.
• A.L.T.A. Lender Title Insurance Policy: This policy insures the lender against any risks on the subject property, such as mechanical liens, encroachments, easements, water rights, etc, for the entire life of the loan.

Purchasing a new home can be incredibly overwhelming, especially when dealing with uncommon language while treading in unfamiliar territory. As always, don't sign unless you understand what you are signing! As a buyer's agent, we are training to translate the Chinese to layman's English, much like a pharmacist interprets a doctor's scribble. But we don't know what you don't understand. Speak your mind! Be heard! That is your most important job throughout the signing of the purchase contract, and throughout the real estate transaction as a whole.

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ARIZONA RELOCATION - What are your "must haves?"

This article was sent to me by a friend in the mortgage industry. It's not an article specifically about relocation, but an interesting look at what people are considering must have features in their homes. The survey was conducted by AVID Ratings Co.,which conducts an annual survey of home-buyer preferences. CEO Paul Cardis says these are 10 "must have" features in new homes. This survey is not focused specifically on Phoenix / Scottsdale, Arizona relocation. Rather, it is a Nationwide survey and here are the direct quotes:

1. Large Kitchens, With an Island
"If you're going to spend design dollars in a home , spend them where people want them -- spend them in the kitchen," Cardis said. Granite countertops are a must for move-up buyers and buyers of custom homes, but for others "they are on the bubble," Cardis said.

2. Energy-Efficient Appliances, High-Efficiency Insulation and High Window Efficiency
Among the "green" features touted in real estate, these are the ones home buyers value most, he said. While large windows had been a major draw, energy concerns are giving customers pause on those, he said. The use of recycled or synthetic materials is only borderline desirable.

3. Home Office/Study
People would much rather have this space rather than, say, a formal dining room. "People are feeling like they can dine out again and so the dining room has become tradable," Cardis said. And the home theater may also be headed for the scrap heap, a casualty of the "shift from boom to correction," Cardis said.

4. Main-Floor Master Suite
This is a must feature for empty-nesters and certain other buyers, and appears to be getting more popular in general, he said. That could help explain why demand for upstairs laundries is declining after several years of popularity gains.

5. Outdoor Living Room
The popularity of outdoor spaces continues to grow, even in Canada, Cardis said. And the idea of an outdoor room is even more popular than an outdoor cooking area, meaning people are willing to spend more time outside.

6. Ceiling Fans
(I would consider this one to be specific to Phoenix / Scottsdale Arizona relocation :-)

7. Master Suite Soaker Tubs
Whirlpools are still desirable for many home buyers, Cardis said, but "they clearly went down a notch," in the latest survey. Oversize showers with seating areas are also moving up in popularity.

8. Stone and Brick Exteriors
Stucco and vinyl don't make the cut. (ouch, this one hurts and could aimed specifically at Phoenix / Scottsdale Arizona relocation.)

9. Community Landscaping, With Walking Paths and Playgrounds
Forget about golf courses, swimming pools and clubhouses. Buyers in large planned developments prefer hiking among lush greenery.

In my opinion, people relocating to Phoenix / Scottsdale -- and those relocating across town -- do tend to have some differences in home preferences. Most of my relocation clients have tended to be a little wealthier because they were corporate executives being relocated. My out of state relocations have not been as concerned about items number two, six, and nine. However, they've usually expressed an interest in numbers one, three, four, and the opposite of nine (because they prefer golf course communities). Additionally, most prefer a three car garage.

My clients who have relocated across town are almost always interested in items number one, two, six, nine, and ten with little or no care for items four, five, and seven.

Arizona Relocation

QUESTION: What do these famous people have in common? I'll give you one guess ... but you may be surprised at the answer.

ANSWER: Each of them, at some time in their lives, experienced and struggled with mental illness.

Here are some facts you may not realize about mental illness in our country:

• One out of five American families has a relative with a mental illness.
• Mental illness typically strikes young people in their most productive years, from age 16 to 25.
• Families from all walks of life are affected, regardless of age, race, income, religion, or education.
• Mental illness devastates families and ill persons. Family life is often disrupted for all members of the family.

For a number of years now, the National Alliance for the Mentally Ill (NAMI) has hosted an annual walk to raise money and awareness about this debilitating disease. This year, thousands of concerned citizens in nearly 80 communities across the country will walk on Sunday, March 28, in an effort to raise money and awareness about America's need for a world-class treatment and recovery system for people with mental illness. Will you join us?

LOCAL EVENT

Location: Tempe Town Lake/Beach Park, Tempe, AZ
Date: March 28, 2010
Distance: 5 K
Check-in: 12 p.m.
Start Time: 1 p.m.
Website: www.namiaz.org

For more information about this event, please contact Leila Pleasant at 602-244-8166 or lpleasant@namiaz.org.

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Thinking of buying or selling a home in the Phoenix area - or know someone who is?

This is the PERFECT climate for move-up buyers. Find out how we can help make the buying or selling process simple, stress-free, and enjoyable. Feel free to contact me by phone 602-595-8900 or email me.

Search here for homes in the Phoenix area.

You can also visit our website for more information on Phoenix and the surrounding areas and download my First-Time Homebuyers' e-book.

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