Gina McKinley, ABR, CDPE, CRS ~ Chandler, Gilbert, & Mesa's #1 Expert

It is a great time to be a first time Chandler AZ home buyer. Not only are home values down and mortgage rates at historic lows but the First Time Home Buyer Tax Credit will give you 10% of your home’s value (up to $8,000) at closing. These three items can add up to significant savings for the first time Chandler Arizona home buyer, making it an ideal time to start looking at Chandler AZ real estate. However, there are important things to keep in mind before buying your first Chandler AZ home to make sure this important decision is the right one for you and your wallet.

• Get Information. Most communities offer free seminars for first time home buyers. There are also non-profits that offer helpful advice and information. Visit www.HUD.gov for helpful tips and a list of agencies near you that have free information available.
• Know What You Can Afford. Analyze your monthly budget. A good rule of thumb is that your mortgage should be 28% of your expenses or less to be successful financially. Remember to factor in home owners insurance andproperty taxes into this scenario.
• Talk to a Lender. Start talking with a bank or mortgage lender and get the ball rolling. The process of being approved by a lender is a longer process these days and you want to make sure that you get approved before the First Time Home Buyer Tax Credit expires on November 30.
• Find a Real Estate Professional. Finding the right real estate agent to work with can make your deal run that much more smoothly. A good real estate agent will help find you a home that works for you, not against you. A good real estate professional can also help you find a good lender if you have had a hard time during that step. Gina McKinley knows the ins and outs of Chandler AZ real estate, and can help you find your perfect first home.
• Know What You Are Committing to. During a real estate deal you are signing a lot of papers. Know what you are signing. If your real estate agent is having a hard time explaining things to you you might want to take the extra step and get a real estate lawyer to review your documents.

When it comes to buying your first Chandler AZ home you want to make sure your are buying something you can afford, something located in the Chandler AZ neighborhood you want to live in, and most of all, a place that you want to call home. Gina McKinley can give you great information and advice on your first time Chandler AZ home purchase, so you can make the best decision. Gina McKinley can be reached at (480) 600-1129 or by email.

The first major change to the $8,000 home buyers tax credit began moving through Congress last week, giving hope to first time buyers of an extension of the program before it expires Nov. 30.

House Ways and Means Committee chairman, Congressman Charles Rangel, a New York Democrat, combined several smaller bills into the "Service Members Home Ownership Act of 2009" late last week, with a floor vote expected this week.

The bill is intended to correct a flaw in the original tax credit legislation: By requiring buyers to occupy and own their first home for 36 months to fully qualify for the credit, the program creates serious problems for military personnel are transferred overseas.

During their absence, they are not occupants of their houses, and sometimes have to rent them out or sell. Any of these events make them ineligible to retain the $8,000 credit under current law. Ineligible buyers must then repay the credit to the IRS.

Oregon Congressman Earl Blumenauer, sponsor of one of the bills consolidated into Rangel's, said "it is absurd that thousands of Americans serving our country, away from friends and family ... must choose between their service work and home ownership."

The Ways and Means committee's bill would waive the repayment requirement when a military member must sell a home within the 36 month period because of a transfer to a new duty station or overseas, and would count service-related absences toward the 36 month requirement.

Another provision in the bill would extend the $8,000 credit for another year for personnel who may have missed out on claiming the credit because they thought they wouldn't qualify due to an overseas posting.

The credit for these individuals would be extended to November 30, 2010 from November 30, 2009, provided they served outside the U.S. for at least 90 days during calendar year 2009.

The bill, which has bipartisan support, could be sent to the Senate for action as early as next week, Congressional sources told Realty Times.

More important for the housing market overall, however, is the precedent set by the bill's extension of the credit for an extra year. It's not a far leap from that position to a general extension of the entire $8,000 credit program to the same date.

For more information regarding the first-time buyer tax credit, please call me today at 480-355-8645.

Wonderful News for second home-owner's & Investors. Arizona Governor Jan Brewer signed HB 2008, which repeals SB 1271 and its change to the anti-deficiency statute. SB 1271 was set to go into effect on September 30, 2009 and would have changed the protections of Arizona's anti-deficiency statue.

For additional resources and information regrading short sales, visit us at www.az-short-sale.com

The governer's office has approved the special session of the legislature to review repealing the anti-defiency status. The good news is the Senate has transmitted HB 2008 to the governor's office. Depending on the circumstances, Governor Brewer could have up to 10 days to sign, veto, or allow the bill to go into law without her signature.

There are a couple of other provisions contained in HB 2008, including partial language from HB 2269 that effects the notification of tenants in foreclosed properties. The language requires the trustee to notify the tenant that the property is in foreclosure by mailing a copy of the Notice of Foreclosure to the property. This will not effect the Federal tenant protection law that went into effect in late May. That law states that if a primary occupant purchase a home with a tenant in it which was foreclosured upon, the tenant is given a 90 day notice to vacate. If purchased by an investor, he must honor the lease term. Back to Arizona law, another provision of HB 2008 allows the Arizona Secretary of State to provide the Arizona Landlord Tenant Act on its website instead of providing printed copies. Stay tuned for more information regarding HB 2008.

SB 1271 - Anti-Deficiency Law Change

The current law - Arizona Revised Statutes (A.R.S.) § 33-814 currently states that within 90 days after the date of sale of a trust property under a trust deed, a legal action may be brought to recover a deficiency judgment against the borrower (trustor) who has now had their property foreclosed. The deficiency judgment must be for an amount equal to the sum of the total amount owed as of the date of the sale either by the fair market value of the trust property as determined by the court or the sale price at the trustee's sale, whichever is higher. The current law prohibits a lender from seeking a deficiency judgment against the trustor (foreclosed property owner) if the trust property is 2.5 acres or less and is used as a single one-family or single two-family dwelling.

The law effective September 30, 2009 - SB 1271 amended A.R.S. § 33-814 (G) to require that the trustor must have "utilized" the property for six consecutive months and a certificate of occupancy must have been issued.

What does this likely mean? Various attorneys are opining different theories. The main interpretation of the statute is that after September 30, 2009, properties sold at trustee's sale (foreclosure sale) likely will not qualify for the anti-deficiency exemption unless the trustor lived in the single one-family or single two-family dwelling for at least six consecutive months.

The legislative Fact Sheet, as transmitted to the Governor, states that SB 1271: Prohibits a deficiency judgment against a trustor pursuant to a trustee's sale of a trust property that is 2.5 acres or less and is used as a single one-family or single two-family dwelling if both of the following apply:

* The trustor has lived in the trust property for at least six consecutive months.

* A certificate of occupancy has been issued for the property.

This clause places the burden of proof on the trustor to demonstrate that the statutory requirements to prohibit a deficiency judgment are met. Meaning the owner has to prove that they actually lived there for the last six consecutive months. How will the occupancy exactly be determined is in question, will utility bills be sufficient? Hopefully the forth coming attorny opinions will provide some answers.

This is a big change to the existing law that provided protection to borrowers in some cases against a deficiency judgment when their property went through foreclosure. The legislation certainly has the lending and real estate industries a buzz with its intended and unintended consequences. The current law protected investors and this new law now strips that away. Possibly one of the unintended consequenses will punish owners that have tried to do the right thing. The owners that could not sell due to the drastic depreciation, rented the homes in the hopes that the market would get better so they could sell in the future. This may mean that one of the few options to avoid foreclosure with a deficiency judgement is to a short sale of the home. Investors and certain owners will need to be aware of this new law to try to protect themselves from deficency judgments and the long term financial consequenses.

For information on short sales, please visit me at www.az-short-sales.com