Jessica Steele

There has been talk about a certain amount of bond money arriving to perplexed buyers to assist them in th home buying processing here in the Phoenix area. As it turns out, this news actually isn't too good to be true. It's actually a fact. Although it is not actually bond money, and it certainly doesn't function like traditional bond programs of the past, money coming from the Neighborhood Stabilization Program can definitely benefit home buyers. So, just what does this program entail?

The most important thing buyers should know is that this program only serves certain cities in the Phoenix area. These towns include the lovely Surprise, and the other foreclosure-stricken communities of Phoenix, Glendale, Avondale, Mesa and Chandler. It is only available for homes of up to $300,000, and may be used for primary residences only. It is not available only to first-time home buyers, although each city does have its own specific rules and regulations for how the money actually words. In general, however, it gives up to $20,000 in the form of a silent second lien on the property that the home owner does not have to pay on until the sale or refinancing of the home. Further, the money offers up to $5,000 in closing cost assistance, and $10,000 in rehabilitation money. It is only available for lender-owned properties, in areas particularly stricken by the foreclosure crisis. And . . . here is the biggest kicker - the bank must be willing to take up to 15% less than the appraised value of the home.

What, you REALLY thought there was going to be a program without a catch?

Just the word "monetization" intrigued me as I opened an email from one of my lenders last week. And the first time home buyers tax credit has been all the talk in the industry lately, encouraging young adults and other real estate consumers to be homeowners for the first time, and diminish some of the inventory currently inundating the market. So, what does this "monetization mean" in simple terms?

In short, this monetization is great news for first time buyers. The Federal Housing Administration is now going to allow lenders to permit new home owners to utilize their tax credit for their downpayment. Consumers will be able to access their $8,000 tax credit immediately at the closing table, as lenders "monetize" the tax credit through short-term bridge loans.

Although these recent changes seem small, their impacts are great throughout the industry. We are seeing home prices finally start to stabalize instead of the sharp decline we recently experienced, and inventory is not nearly as great as it was just a few months ago. Understanding these changes and taking advantage of some of the new programs out there will only further help us out of our current economic state.

. . . but it still isn't too late to do that last bit of oh-so-dreaded spring maintenance on your home. If you are like me, oh dear hard-working citizens of the West, you tend to put off your annual home maintenance needs as long as possible. (I knew my plants were beginning to die out front, however, it took my sprinkler heads spewing H2O mercilessly into the street forming a free neighborhood car wash before I called a landscaping company.) There simply never seems to be enough time. Making annual maintenance a priority, however, can truly cut down on future repair costs, and allows all of that hard-earned money to go towards something fun, rather than something painful. Let's face it. No one wants to be without air conditioning as we begin these stifling summer months.

So what can you do to be pro-active in your home maintenance? Review this spring maintenance checklist for tips and ideas of how to avoid costly future frustrations and repairs.

According to the latest statistics from the Arizona Regional Multiple Listing Service, the number of foreclosures in Central Arizona (including Maricopa and Pinal counties) is on the decline. The number of active REO (real estate owned) properties has decline by 46% in the past 80 days. Some specific cities enjoying this foreclosure relief include Avondale, Buckeye, Gilbert, Glendale, Goodyear, Phoenix, Maricopa, and Queen Creek. Further, the median home price in the Phoenix area also rose approximately 4%, in part due to multiple counter offers above list price on most current REO listings.

It is safte to say, once again, that you cannot buy something for nothing. Although prices are still low, you can rest assured that the majority of low-ball offers are going to be scorned, and even most offers even slightly below list price will be quickly surpassed by more serious, educated buyers. Making yourself knowledgeable in the area of lender-owned properties before beginning the home-buying process can really facilitate life for you and the other parties involved in a real esate transaction.

As the market begins to pick up pace in the greater Phoenix metro area, I am beginning to speak with many home buyers who are asking a question very near and dear to each of their hearts: How long will it take to purchase my new home? As buyers are getting more and more creative with their living arrangements (see last month´s post Insane(ly Clever?) Real Estate/Divorce Scam)time can be of utmost importance in any transaction. It is vital that buyers not be disillusioned about how long it is actually takes to buy a home in today's market, and understand why 30-day closings are harder and harder to find.

As market activity increases, not only are Realtors more occupied than in previous months, but lenders are becoming more active as well. As buyers are taking advantage of historically low interest rates, they are competing with lenders' time as current home owners are trying to refinance their current residences. Although the time it takes to underwrite the loan is no different than before, the time is harder to come by, significantly effecting the length of the home buying process. Likewise, if working with a bank-owned (REO) or short sale property as opposed to a single home owner, the process is also lengthened, as banks try to equip themselves with the staffing needed to deal with excessive files and paperwork.

Finally, the manner in which loans are funded has also recently changed. In the past, it was possible for loans to fund on the same day the buyers signed loan documents. With so many FHA loans currently being funded, however, same-day funding is almost obsolete. As banks must approval the final HUD in REO and short sale transactions, they will often not wire funds until the final HUD has been approved. This process takes more time than with a traditional resale. Further, the title company must have all official documents on-hand in order to fund a loan. If addenda and other documents were needed at the last minute, this could again slow the funding process.

With all of these uncontralables coming into play (and believe me, every transaction has its uncontrolables), is it realistic to plan on a 30-day closing with an REO or short sale property? Your agent can help you determine the specifics, but in general, it might be safer to expect a 45-60 day close.