About Phoenix's Central Corridor

Is HEAT the Answer for Phoenix Growth?

In a recent KAET - Channel 8 - special, host, Ted Simons, was discussing with two experts some answers for Arizona, and Phoenix’s, economic growth. The acronym, HEAT, was given as a solution. In the past, Phoenix’s economic engine has been real estate and construction. As we have all experienced in the last 3 years, both real estate, residential and commercial, and construction have nose dived. Both of these sectors have lost jobs and those jobs are not coming back in the foreseeable future.

HEAT stands for: Health Care, Energy, Aerospace and Technology. Health Care continues to be the one market sector which is adding jobs, and as we baby boomers age, this sector will continue to grow jobs. Energy, especially solar energy, could be an economic engine for our state and for Phoenix. There are plans for solar panel installations in the deserts surrounding Phoenix. Perhaps our new mayor could encourage this form of growth, with incentives and job creation. Aerospace has been an economic engine for Arizona; both with research at McDonnell Douglas, Honeywell, etc. Technology, both biotech and other tech industries, could flourish in our state, if our legislators could provide the climate for tech companies to locate in Arizona.

HEAT could be the answer for Phoenix growth and for growing jobs in Arizona. What can we do? One thing is to research candidates for the upcoming Mayoral election and verify what their stance is on these issues.

For more information, give me a call at 602/820-2170.

Diane Brennan

Perc Up To Open on 7th St.

Looking for a good place to have a cup of coffee and watch 7th Street Traffic? Perc Up Cafe will soon be open in the old Drip Coffee and Toast Boutique spot at 2325 N. 7th Street. Three Coronado residents, Linda Cohen, Jennifer Lancaster and Kathy Lyman, have combined their talents to renovate the Drip and Toast spaces into a cafe.

These ladies are also roasting the coffee in house and are purchasing coffee beans from the Cafe Femenino Coffee Project; whose mission is women helping women.

The hours for Perc Up will be 6 am to 9 pm and the ladies will be serving coffee drinks, smoothies, breakfast wraps and they are planning a Sunday brunch with homemade English muffins and stuffed French bread.

I can't wait - it all sounds yummy.

Some Corrections to Blog Post re Empty Bowl Pet Pantry

In a previous blog post about the Empty Bowl Pet Pantry, I made some misstatements which I'm attempting to correct. First of all, Mary Neuling is the Founder and Treasurer of the non-profit, not the President. Secondly, Mary distributes food on Thursday mornings, on 12th Avenue and Madison; she does not pick up food at that location. Anyone is eligible to pick up pet food for their pets at this location, around 8:30 am to 9:30 am on Thursday mornings.

Where do the donations come from? Private individuals, WalMart, Halo (a no-kill shelter in Phoenix), Fry's warehouse, a Pet Club store all donate to Empty Bowl Pet Pantry. This non-profit was started because of the need in our community to feed our animals, especially in these trying times. Many people are torn between feeding themselves or their pets. Mary's organization fills this need and the animals bellies, while allowing their owners to keep their pets, who, oftentimes, are the only contact some of these people have.

If you would like to donate to the Pet Food Pantry or would like more information, contact Mary Neuling at emptybowlpetfoodpantry@yahoo.com.

Selling Your Home as a Short Sale is a Process

Many sellers in Arizona are upside down in their homes; the last figure I read was 50% and I believe that figure is on the low side. So, how do you sell your home as a short sale?

First of all, what is a short sale? A short sale occurs any time an owner owes more on their home than it is worth. Since the Phoenix market has taken a sharp downturn in the last year, and values are 50% or more less than 3 years ago, anyone who purchased a home during the 2002 through 2005 and again in 2007 are, most likely underwater. This is a short sale.

Another component of a short sale is a hardship. Simply owing more than your house is worth is not sufficient to engage in a short sale. A hardship must also be present. What constitutes a hardship? Any loss of income because of unemployment, underployment (cut in hours or salary), sickness and inability to work, death of a spouse or contributor to the household finances, divorce - all of these are considered hardships - but the final arbitrator of a hardship is the lender or servicer who holds the loan(s) on your property.

Arizona has been on the forefront of the short sale process, since our market has been devastated by the real estate downturn and the loss of jobs and income experienced by our homeowners. The Arizona Department of Real Estate has assembled a short sale advisory for both buyers and sellers with remarkable clarify of language and links to various sites. This advisory gives sellers much needed information regarding the process and also regarding other alternatives to short sales. I have included the link to Commission Judy Lowe’s comments regarding the seller advisory.

You may also visit: www.aaronline.com to view the short sale advisory in its entirety. As always, feel free to contact me at 602/820-2170 or dbrennan4@cox.net with questions regarding short sales.

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Will the Recent Increase in MIP Negatively Affect our Business?

FHA has increased the Monthly Insurance Premium on its loans, effective April 18, 2011. According to Vicki Hill, Mortgage Broker and owner of Innovative Loan Solutions the effect would be as follows:

All loans initiated and locked prior to April 18th would have a monthly MIP rate of .90%. In this situation, a loan amount of $100,000, has a monthly MIP of $75.00. Loans initiated and locked after the April 18th date, have a monthly MIP rat of 1.15%. This would equate to a monthly rate of $95.83, or approximately $25.00 per month for every $100,000 in loan value.

Will this effect be substantial? Will it deter buyers from purchasing a home? These questions will be playing out over the next few weeks and months. This is our ‘buying’ season, and more buyers are using FHA to purchase their homes.

Why was this increase necessary? FHA indicates that the increase was due to increased use of FHA loans and the need to maintain a certain amount of reserves.

“As an institution, the Federal Housing Administration plays a much larger role in the U.S. housing market today than it did just 5 years ago. According to its own records, the FHA’s percentage of purchase money business in Florida and nationwide expanded from 4 percent in FY 2006 to 19 percent in FY 2010.

Rapid growth like this has strained the FHA’s capital and, indeed, in its official statement, the FHA alludes to this, stating that the MIP increase will “significantly strengthen” its reserves. “ from an article by Max Boehmer, Florida Mortgage Daily Update.

The 1% upfront MIP fee on all FHA loans has not changed.

We should all watch this development closely to assess whether it negatively affects our business? Will it curtail the recent buying activity in the Phoenix market?

Diane Brennan