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

President Obama signed a new legislation that entices the banks to help save homeowners facing foreclosure on Wednesday. President Obama states that it protects the homeowners and cracks down on lenders who try to take advantage of their situation.

The law expands on an existing program that entices the lenders to adjust the mortgage rate if the homeowner pays an insurance premium. The bill also extends a deposit insurance increase by the FDIC from $100,000 to $250,000 until 2013.

The House voted 367-54 to pass the Helping Families Save Their Homes Act on Tuesday, where it progresse to the Senate who had voted 91-5 in favor of the bill and approved the final version by unanimous consent.

This great news for homeowners who are in true financial hardship, offering them an oppertuniy to short slaw their home or have a Deed in Lieu of Forclosure. If you have any questions about foreclosures or alternate oppertunitys, please contact me. As a Certified Distressed Property Expert, I will be glad to assist you, providing you with specialized brochures that compare foreclosures and its alternates.

The Phoenix metro area's strong seller market from 2005 has gone to a complete reversal, going from boom to bust. However, 2009 is promising to be a year of recovery with many positive signs in market. The large amount of supply has created a buyer's market with record inventory levels. That is now changing with March 2009 showing a 6.8 month supply of homes.

Prices have declined approximately 31% year over year, so little to no appreciation is expected this year. I anticipate 2009 to continue as a year of recovery as the market showing very positive signs and sure enough, March came in like a Lion and we are maintaining that stronger trend for the third straight month!!

March's Residential Highlights

The number of homes sold in Maricopa County in March 2009 was 7,600 units up significantly from March 2008's dismal number of 4,200 units. That is an 80% improvement year over year! The market is being driven by first-time buyer's which is another healthy sign instead of being investor driven. The first-time buyer stimulus plan of an $8,000 tax credit plus the record low interest rates have improved affordability and enticed buyers to "get off the fence" so to speak. It is also a great time for investors to come back into the market as long term investments will now cash flow for rentals with amortizing loans. It appears that we may have it bottom as this is the third consecutive month of increases in sold units, however, only time will continue to tell. Inventory levels are also down significantly from January, from 57 million units to currently 51 million units. Another positive trend is the months of inventory on the market. A normal market is considered about a 6 month supply. We have seen inventory levels drop from a 13.8 month supply in January to currently a 6.8 month supply. Prices are still declining for properties above the conforming loan limits of $417,000, however, homes priced $200,000 and under are receiving multiple offers and in some cases selling for above list price.

Now is the time to take advantage of the great buyer opportunities while they are still there! The inventory is great, prices are amazing, and many sellers, including bank owned properties, are willing to provide closing cost assistance, plus the government is paying you $8,000 to buy a house!!

If you are interested in what your home is currently worth or would like information on purchasing, please contact me at 480-355-8645 or ginamckinley@remax.net for a Free Market Analysis or Buyer Information Packet. You may also view my Featured Properties at www.LocateArizonaHomes.com

Participants of Basha Elementary School's Art masterpiece Program display their artwork during an ArtWalk on campus from 6 to 9 p.m. on April 30. The public is encouraged to attend.

A portrait of a Basha teacher by area artist Linda Fox will be unveiled at 6:30 p.m., and visiting artists demonstrate their craft throughout the night. In addition, Basha music teachers perform, and youth visitors can do hands-on art projects.

Basha Elementary School is at 3535 S. Basha Rd. in Southern Chandler. Call 480-883-4400.

Stay-at-home moms looking for creative ways to get their children out of the house and score some social interaction time for themselves, are invited to check out the Moms Club of Chandler Ocotillo South during an open house from 9:30 a.m. to 11:30 a.m. Wed., April 22 at Chuparosa Park in Southern Chandler. The free event includes crafts, refreshments and snacks.

The MOMS Club of Chandler Ocotillo South, which is a local chapter of an international group for moms who choose to stay at home and raise their children, serves the community South of Ocotillo Road, East of Price Road, West of McQueen Road and North of Hunt Highway. The nonprofit support group organizes monthly kid's activities, weekly age appropriate playgroups, special outings, a monthly MOMs night out, community service projects and assists charitable organizations.

Chuparosa Park is located at 2400 S. Dobson Rd. on Dobson between Queen Creek and Germann Roads. Call Michelle at 480-820-2602 or email ocotillosouth@yahoo.com for more info.

I have just had my first Short Sale that did not reach a successful agreement and I am broken hearted for the owners. These people are in a true financial hardship with a job loss and medical issues as well as medical collection accounts. Their only shred of dignity left would have been to avoid a foreclosure on their credit by doing a short sale.

Issue #1? The owner's dilemma- to foreclosure or short sale? This home is Fannie Mae insured with Wells Fargo as the servicer. These people did everything right. They put 10% down on a fully documented loan. No "Liar Loan" here. The problem comes in with the mortgage insurer, which is Radian Group. Radian will have to pay out on the loan if it defaults no matter is a short sale or foreclosure situation. Radian will not approve the short sale unless the owner agrees to carry back a promissory note. This is a major issue because a short sale is not protected under Arizona's ant-deficeny laws since it is a negotiation. The owner is protected if they foreclose in Arizona because it is their original purchase money mortgage. The decision of the owner in this situation is personal decision, but faced with collection accounts, job loss, what would you do? Foreclosure and have your credit effected for 7 years or short sale and have the promissory note hanging over you head for 15 years.

Issue #2? Bank and Investor Greed!! This situation has frustrated me beyond belief. I am so angry with the parties involved because they are double dipping!! Fannie got an influx of government (our taxpayer money) when the Fed's took over conservatorship in July 2008 and Wells Fargo also received a huge influx of (our taxpayer) money under TARP. Fannie Mae is then also collecting on the mortgage insurance. So Well is whole, Fannie receives "double" and the homeowner who is "supposed" to be helped by these the stimulus money and modification programs get the shaft.

So what do we do next. I will be contacting the Arizona Attorney General to report this willful intent of the parties involved to avoid the consequences of the anti-deficiency statues. We have until May 27th to avoid the foreclosure auction date and I am not done fighting this yet!