4/23/09

Today's Topics:

• Lost Our Home Pet Foundation http://www.lostourhome.org/
• Market Update: The Cromford Report 4/21/09
  

LOST OUR HOME PET FOUNDATION

Dear Friends,

Nothing tugs at our hearts more than stories about families in trouble and, sadly, today we are hearing way too many of those sad stories. As families face the incredibly difficult trials of financial disaster, they often face the added emotional strains of being unable to care for their family pets. Unfortunately, as many families lose their homes to foreclosure and eviction, they are no longer able to deal with their family pets and some just leave their pets behind as they walk away from their homes.

Lost Our Homes Pet Foundation is a nonprofit group of real estate professionals who rescue pets left behind due to foreclosures or other financial hardship. I first learned about this organization when I read a recent article in the Arizona Republic. I was deeply touched by the commitment of these pet-loving volunteers.

My intent in sharing information about this wonderful organization was to let you know how you can help. But, a funny thing happened on my way to send this to you... I decided that I should put my money where my mouth is, and I stopped in the middle of writing to fill out an application to volunteer myself. I hope you will visit Lost Our Home's website to see what they do and to see what you, too, can do to help. Below are some suggestions for you...

How You Can Help Us

Volunteer:	This organization wouldn’t be possible without the help of our loyal and dedicated volunteers. If you’d like to lend a hand please click here to see how you can help.
Foster:	Everyday, many pets are left to fend for themselves; abandoned by their owners due to financial distress. Without the help of loving foster parents, most of these pets would never be given a second chance. If you’d like to aid us in our mission to re-home these forgotten pets, click here.
Adopt:	We have many loving pets that have previously been abandoned or neglected. To browse through our current database of homeless pets looking for their “forever home,” follow this link.
Donate:	Lost Our Home Pet Foundation is funded entirely by the generous donations of people like you, and business sponsors. Without this help, our far reaching efforts wouldn’t be where they are today. Click here to help make a difference.

CROMFORD REPORT - 4/21/09

We have added about 500 Pending (Contracts in Escrow) Listings and lost 1,200 Active Listings in the last seven days. There are about 3,100 AWC (Active With Contingency) listings among the actives, of which some 2,500 are short sales.

The average $/SF (Price Per Square Foot) for pending listings is $88.88, which is higher than both last week and last month. The lowest reading of average $/SF for monthly sales was recorded on April 6. This measurement is now moving sideways to slightly higher.

We continue to see a slower rate of trustee sales. The 7,878 REO (Bank Owned) listings on ARMLS represent just 1.6 months supply at the current monthly sales rate.

- Mike Orr, The Cromford Report

Remember: GREEN is good!!

4/15/09

The number of residential home sales in March 2009 was the greatest since October 2005! In the first quarter of 2009, Arizona Regional Multiple Listing Service (ARMLS) residential home sales were up and, if sales continue at the current rate, could possibly go over 70,000 for the year. That's a significant jump from the 60,108 sales in 2008. While sales remain sluggish for higher end homes, the greater Phoenix housing market appears to be recovering for homes at the lower end of the price continuum.

Traditionally, the housing market is considered NORMAL when there is a six month supply of homes. When there is less than a six month supply, the market generally tilts towards a SELLER'S MARKET. As the supply of homes goes beyond six months, the market becomes more of a BUYER'S MARKET. Today, there is less than a six month supply for homes under $200,000 and homes in that price range are selling quickly and often at above list price. The supply of higher priced homes, on the other hand, continues to be high (especially in the luxury range of over $1,000,000). There are great opportunities out there for those looking to buy homes where there is the greatest supply.

While the news remains good for Buyers, sadly many homeowners are finding themselves in financial distress. The article below called Buying "TIME" gives excellent advice for those facing foreclosure. The most important thing to remember if you are in this difficult situation is to be pro-active, don't stick your head in the sand! There is help out there... just be cautious in your search for help, as there are many unscrupulous folks looking to take advantage of your situation. If you are in need of advice, I would be happy to help you find someone to help you address your foreclosure and loan modification options.

Warmest Regards,
Pook


Today's Topics:

• Market Update: The Cromford Report 4/14/09
  
• Buying "TIME" (Advice for the Seller who is facing foreclosure) - Article by Mildred Wilkins

Market Update: The Cromford Report - 4/14/09
We have over 13,000 Pending Listings in mid-April – over 1,000 higher than the largest number seen in 2005. There are another 2,803 AWC (Active With Contingency) listings, included in the active number above which continues to fall at an unprecedented rate. Many transactions are in escrow, as the sales figure struggles to catch up.

Average $/SF for pending listings is $88.32, which is higher than March 14’s reading of $87.75. This suggests that average $/SF pricing will not fall over the coming 30 days and may actually start to move higher. We see very little downward pricing pressure on properties under $150,000 and as these form the bulk of sales, the overall average $/SF for sales seems very unlikely to drop below $80.

We have seen a marked slowdown in trustee sales in the first half of April, although foreclosure notices still climb. The 9.083 REO listings on ARMLS represent just 1.7 months supply at the current monthly sales rate.

Buying "TIME"

By Mildred Wilkins, founder and president of Home Ownership Matters, LLC. She is the trainer for the (FIS) Foreclosure Intervention Specialist certification program.

Never before has the expression “If I could just buy some time” meant so much to people. When you are facing foreclosure you need time to discover your options, analyze your situation and implement an action plan. Your most precious commodity is time…And it’s running out.

When your money is running out…

You don’t have time to wait for the trickle down effect of the stimulus package to make a difference in your personal situation. While the package will make a significant difference over the long haul for thousands of Americans, anyone who thinks it is going to quickly make a difference for EVERY American is kidding themselves. Facing reality is hard, but necessary. As a country, we have ignored hard truths with disastrous consequences for too long. Nothing will be gained by continuing to point fingers. However, we must immediately recognize that each of us has a role to play in correcting the serious housing problem we face as a country. (Even if your home is paid off, FREE and CLEAR). The housing market holds the key to stabilizing our country, so anything we can do to keep people in their homes is a step in the right direction.

First things first...

DO NOT ABANDON YOUR HOME. Even when you are behind on your mortgage, no matter how far behind you are, DO NOT abandon your home until the entire legal process has been played out. You can stay in YOUR house until your right to possession has ended. Exactly when that time is will be determined by three (3) factors:

1. Type of foreclosure in your state: judicial or non-judicial
2. Whether you have a mortgage or a deed of trust
3. State statutes regarding sheriff or trustee sale and possession timeframes

Find out the answers to items 1, 2 and 3, and then abide by them. Make sure your lender abides by them as well. Things could improve while you are holding out. Hold on.

Things are changing radically and very quickly because of the magnitude of the housing problem. Your local courts could dramatically change the way they process pending foreclosures so that you have a chance to work things out with the lender. Stay in our home and fight for the chance to work things out. More banks are willing to work with borrowers today simply because they really can’t manage the huge backlog of homes which have already been lost to foreclosure. If you can present a viable plan, your chances of retaining home ownership are pretty good.

Second things second…

I know you know that, but I needed to get your attention. Probably the second most valuable thing anyone will ever tell you to do to save your home from foreclosure is to:

1. Demand the lender or servicer who is threatening to sue you for foreclosure produce the original note/deed of trust which says you owe them. In legal terms you are asking them to demonstrate that they are the “real party of interest.” In common language that means, prove I owe you. Prove you have the right to demand payments from me.

2. The most effective way to demand this documentation is with a “qualified written request.” You are entitled to request that and any other information you want which is related to servicing on your loan (any mortgage loan in the United States) under federal RESPA regulations.

What Choices do I have?

Let’s consider the answer to that question. It is critical that you start with an honest inventory of your situation. How far behind are you? Do you have the resources to resume payments? If not now, when will you be able to do so? What do you want to do? What are you ABLE to do? Why should the bank consider your proposal? You’ll need to able to defend it as being reasonable, based on your current circumstances.

Space in this article will not allow me to go into detail but I will provide you with the options you can consider. Do further research on each of them, online, in the library, on websites such as HomeOwnershipMatters.com Or at the blog: HomeOwnershipMatters.blogspot.com.

a. Options to keep the house—special forbearance, loan modification or a partial claim. You need to learn what each of these means and how it works

b. Options to let the house go—short sale, assumption or deed-in-lieu. All of these options are better than foreclosure but you need to know exactly how they work to avoid creating yet another problem for yourself down the road.

c. Reverse mortgage could be considered, it could be your solution. Be sure to use a government backed reverse mortgage if you decide to use this option.

d. Receiving disability payments (if you have a claim pending) could make the difference. Hold on until you know what you will be receiving

e. Acquiring a roommate could change your finances—get started working on it (I mean a roommate who will PAY—not one who will add to your expenses)

f. Selling unnecessary items in order to cover the gap until you get a permanent solution. Ebay or Craigslist could bring in some immediate cash. (Stop crying—we are trying to save your home and Buy “T I M E”).

g. Some other solution which has not even occurred to me

“Answer” the summons

The summons is your official notification that the lender has moved to legal action. The court notifies you via the “summons”. Your response should be to the clerk of the courts, the lender/servicer and their attorney. It is critical that your answer be received within the legally stipulated timeframe in your state. It is strongly recommended that the answer be sent by certified mail, with a signature required. This is a task which you can handle on your own, with a little coaching.

Basically, an answer should acknowledge that you are aware of your situation and that you are working with the lender on a plan. Specify what that plan entails. If you are challenging whether or not the lender has the legal right to foreclose (due to failure to produce the original note or demonstrate that they are the “real party of interest”) this is your time to say so. The foreclosure is likely to be stalled based on the quality of a timely, well prepared “answer.”

3/25/09

Today's Topics:

• Market Update: The Cromford Report 3/24/09

• 5 Steps to a Successful Refinance
  

Properties are selling! Whether you're ready to make a purchase or planning on staying right where you are, the news is good. Pending sales are up, as first-time buyers, people planning to move up or down-size, and investors are taking advantage of low prices and low interest rates. And, for those who want to stay where they are, this is a great time to refinance.


Market Update: The Cromford Report 3/24/09

The number of Pending Listings is now higher than at any time since June 30, 2005. The highest number ever was 12,137, seen on April 25, 2005. We are within 1,000 of this record. The Sales per Month figure is also building nicely and the listing success rate is also climbing. The listing success rate for REOs is now over 75%.

According to the affidavits filed with Maricopa County, over 21% of single family and condo purchases are currently being made by investors, up from 18% a month ago and much higher than the 9% we saw in September 2008.

All this demand growth must have an effect and we are seeing signs of a slow-down in price declines in a few parts of the valley, particularly in the last two weeks.

5 Steps to a Successful Refinance
Click above to read this informative article from Bankrate.com.

Highlights

• Finding the right lender crucial to keeping closing costs down.
• Documentation of finances more important than it used to be.
• Many borrowers limited to FHA-backed mortgages.

This is a great time to refinance, but know that there are many, many people doing it right now and it might take you a while to even get through to your lender. Be patient, be prepared, and go for it!

3/3/09

Today's Topics:

• Market Update: The Cromford Report 3/3/09
• $8,000 Tax Credit for New Home Purchases
  
• Getting Pre-Qualified for a Mortgage
  

Market Update: The Cromford Report 3/3/09
The current greater Phoenix market is doing much better than media reports would lead you to believe. For example, if you look at the chart below, you will see that there are less Active Listings and more Pending Listings (homes with contracts) and Closed Contracts than last month, the previous month, and last year. Currently, there is an 8.8 month supply of homes, compared to an 11 month supply last month and a 16.6 month supply a year ago.

The green arrows indicate good news... the red, not so good.

Sales volume rebounded as expected in February and is now nearly 70% higher than at the same time last year. Pending listings are extremely high, with the year-on-year growth setting an all time record of 89.8%. Active listings are falling steadily. What’s not to like about this picture? Surprisingly, Market Distress peaked in February and is now starting to fall. All these indicate the market is improving and is now very much in recovery mode. However pricing will almost certainly be the last indicator to turn round, and there is no trace of a bottom to be found in the monthly sales $/SF or median sales price numbers, with both of these showing 50% drop in the last 2 years. However average asking price $/SF has dropped less than 20%.

The main positive action is concentrated in the very low and low priced segments of the market. The higher priced sections of the market are still suffering from low demand and high inventory with only small signs of improvement. The number of active REO listings is falling quite sharply and normal active listings are also down, but short sales and pre-foreclosures are up slightly.

$8,000 Tax Credit for New Home Purchases
In its efforts to stimulate the economy and revive the housing market, Congress has enacted legislation providing a tax credit of up to $8,000 for first-time home buyers. "First-time" doesn't necessarily mean you've never owned a house before. In fact, for the purpose of this tax credit, you are considered a first-time buyer if you (or your spouse) haven't owned your own home during the three-year period prior to the purchase. In brief,

• The tax credit does not have to be repaid.
• The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
• The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009.
• Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.

While there are income and other restrictions on who can receive this tax credit, it's a GREAT DEAL if you qualify and you should take the time to check it out. Visit the site below for in-depth information on the tax credit.

http://www.federalhousingtaxcredit.com/2009/home2.html


Getting Pre-Qualified for a Mortgage
If you're starting to think that this is the right time to buy a home, the first thing you want to do is contact a lender to get pre-qualified for a loan. This will give you an idea of how much of a loan you can afford and what price range you should be considering. If you don't have a lender that you are currently working with, you can find the names of several great loan officers at my website.

Today it is common practice to present a Loan Status Report (LSR) with an offer. The LSR is the document you will receive when you get pre-qualified for a loan.

If you are one of those lucky folks who wants to buy a home with cash, remember that you will need to show "proof of funds" when making an offer.

2/27/09

Today's Topics:

• $75 Billion Plan to Fight Home Foreclosure
• The New Stimulus Bill

NY TIMES:
Obama Unveils $75 Billion Plan to fight Foreclosure
http://www.nytimes.com/2009/02/19/business/19housing.html?_r=1&nl=pol&emc=pola1

CNN:
Republicans, analysts question Obama's foreclosure plan...
http://www.cnn.com/2009/POLITICS/02/18/foreclosure.plan/index.html?iref=mpstoryview

Track your tax dollars on stimulus bill Web site...
http://www.cnn.com/2009/TECH/02/18/stimulus.web.site/index.html

MSNBC:
How the stimulus bill affects you.
http://articles.moneycentral.msn.com/Investing/Extra/how-the-stimulus-bill-could-affect-you.aspx

1/15/09

Today's Topics:

• FHA Loans
• An Optimistic Investing Approach in 2009

As I have been saying for quite some time now, this is a great time to buy a home. Dropping prices, a large inventory of homes, and low interest rates have created a unique opportunity for those who are ready to buy. And, for those who are staying in their current homes, now is the perfect time to refinance. Read on for valuable information for the New Year...

FHA LOANS
Thanks to Sandy Richards of The Richland Group at CFS Mortgage for the following information regarding
FHA loans:

FHA (Federal Housing Administration) is a part of HUD (Housing and Urban Development) and insures home loans for lenders so that borrowers can get better rates, low down payment, low closing costs and easy credit qualifying.

Currently, FHA loans require 3.5% down for a purchase and 1.75% of the loan amount for Up Front Mortgage Insurance. In addition, there is a factor of .55 per month for monthly mortgage insurance.
Here is an example:

Purchase price: $200,000
Down Payment: -7000
Base loan amount $193,000
Up Front MIP 3377
Total loan amount: $196,377 5.25% rate Principal & Interest payment: $1084
5.964% APR includes mortgage insurance in calculation, no points

Some of the great aspects of FHA are the acceptance of gift funds from a relative for down payment and/or closing costs and they allow 6% of the purchase price as seller contribution towards settlement costs.

FHA wants to see a two year consistent job history in the same line of work. They will allow college to serve as part of that as long as borrower can provide degree that is related to current employment.

FHA will also allow lower FICO scores, usually down to a 620 mid score. Bankruptcy needs to have been discharged at least three years prior to obtaining a new FHA loan. This also applies to foreclosure, short sale and a Deed in Lieu of Foreclosure. Borrower will need to have re-established credit after any of these events listed.

There are also FHA loans that will help borrowers who are purchasing homes that need to be rehabilitated. The first type will allow for small items such as paint, appliances and flooring. If there is anything beyond this sort of rehab, there is a loan available but is quite extensive, similar to a construction loan so contact an experience FHA loan consultant for more details on this loan.

FHA also allows for refinances of many sorts, but he most popular for borrowers is the Streamline Refinance which does not require an appraisal. The costs are capped are minimal to borrower and the loan is very easy to do. There may be circumstances that prevent this loan from being done, in which a Streamline with appraisal and credit can be done, or if the borrower has equity and wants to take cash out to pay debt, there is a full FHA refinance loan that is available.

The best way to see if an FHA loan is right for you or someone you know is to speak to an experience FHA loan consultant. For more information, you can contact me, Sandy Richards at 602.999.2406.


AN OPTIMISTIC INVESTING APPROACH IN 2009
RISMEDIA, January 12, 2009-If you're like most folks, you're entering 2009 clutching your wallet, keeping an anxious eye on your stock portfolio, and bracing yourself for the next dose of economic bad news that's surely coming down the pike. Yes, if you believe everything you hear and read, we're heading straight for financial apocalypse. But what if you decided to opt out of the doom & gloom club? What if, instead, you decided to look for treasure hidden amid the ruins? Choose the latter approach in 2009, says financial expert Eric Tyson, and you'll open yourself up to some great investment opportunities.

"Unfortunately, most often, you can find only the worst case scenario in the nightly news," says Tyson, author of Investing For Dummies®, 5th Edition (Wiley, 2008, ISBN: 978-0-470-28965-5, $21.99) and coauthor along with Robert Griswold of the upcoming Real Estate Investing For Dummies®, 2nd Edition (Wiley, March 2009, ISBN: 978-0-470-28966-2, $21.99). "That's because bad news sells. What you aren't hearing or seeing is that 2009 will bring some great investment opportunities in two areas you might not expect-real estate and the stock market. You simply need to change your perspective a bit."

In other words, by taking an optimistic investing approach during the upcoming year, you can actually profit from the sluggish economy.

Tyson explains how:

1. Take advantage of low prices… Instead of looking at deflated housing and stock values as a bad thing, look at them as opportunity makers. Because prices have fallen, these investments are more affordable and you can buy now and watch current values increase over time. Take real estate, for example. Recent data out from the National Association of Realtors (NAR) shows that their home affordability index (HAI) is at the best level in more than three decades. The current HAI value of 141.8 means that a family earning the national median family income has 141.8% of the income necessary to qualify for a conventional loan covering 80% of a median-priced existing single-family home. So if you have good credit and can put down at least 10-20% of the price, investing in real estate is actually more viable an investment than it has been in years.

"The same is true of stock prices," says Tyson. "Because of the downturn, many strong companies have stocks that are undervalued. If you buy these stocks now, as the market stabilizes and things improve, values will increase and your portfolio will be the benefactor."

2. …But look before you leap. In other words, do your due diligence before you plunk down the cash, says Tyson. Some companies' stocks are low for a reason. Before choosing which companies you would like to invest in, you have to do the research and make sure that they are fundamentally strong. Where real estate is concerned, there are still areas where properties are overvalued-parts of the Pacific Northwest, for example-so you'll have to do the research to make sure you buy in an area where prices have already fallen in line with market fundamentals.

"These caveats are just reminders that you shouldn't go into any investment without doing your homework first," says Tyson. "Making irresponsible investment decisions is what created the problems we are having. By researching your options, you will be able to make sounder, more profitable decisions."

3. Be careful where you get your advice. Misinformation abounds. There are a lot of pundits and so-called financial experts out there who are giving questionable advice and are making terrible predictions, says Tyson. What's more, their past track records indicate that we should take their words with a substantial grain of salt.

"Financial pundits are a dime a dozen right now," says Tyson. "Be very careful about whose advice you follow and whose economic predictions you buy into. For what it's worth, two experts I do respect are professors Burton Malkiel, author of the classic A Random Walk Down Wall Street, and Jeremy Siegel, author of the excellent Stocks for the Long Run. Their work and books have stood the test of time-decades, not months or years-and I know I've profited handsomely from things I've learned from them."

4. Keep thinking long-term. If you make investments thinking you are going to see quick returns, you will be disappointed. Where real estate is concerned, the days of buy it, flip it, and sell it quickly for a huge profit are over. What you can do is buy property now-particularly in areas where it's now properly valued and even undervalued-and watch its value accrue over time as the market stabilizes and improves. You should take the same approach to any stock investments you make.

"It might be tempting to want to time the markets, but just because you get one market turn right doesn't mean you'll see the next one coming," notes Tyson. "Even the best investors make mistakes, some of them huge ones, regarding future timing moves. When it comes to stock investments, slow and steady wins the race."

"It's true that 2008 was a sobering year," admits Tyson. "And now we hear from many pundits and experts that the upcoming one could be as bad or even worse. But if you invest calmly and rationally, rather than reacting emotionally, 2009 can be remembered as the year you made some smart, long-term financial decisions. I think if you take advantage of what's going on in the real estate and stock markets right now, you could be setting yourself up for a very profitable future."

Eric Tyson, MBA, is one of the nation's best-selling personal finance book authors and has penned five national bestsellers (he is also the only author to have four of his books simultaneously on BusinessWeek's business book bestseller list).

For more information, visit www.erictyson.com.

If you haven't visited pookbellini.com lately, please do! In addition to great real estate information, you'll find some helpful links there:

* Arizona Department of Education
* Arizona Golf
* Arizona Guide
* Arizona Hiking
* Cactus League Baseball
* Community Links
* Current Gasoline Prices
* Current Road Conditions

***** GO CARDS!! *****
Game time: Sunday, January 18th at 1:00

Warmest Regards,
Pook

10/18/08

What Goes Up, Must Come Down; Refinance Boom Might Not Follow Bailout; and Recycling With a Payoff

Dear Friends,

Perhaps you noticed that I now have two designations after my name. In an earlier E-News I told you about the e-PRO technology designation that I received in June. Now I am excited to tell you about my newly earned CERTIFIED NEGOTIATION EXPERT (CNE) designation. The designation recognizes advanced negotiation training and skill development in handling the complexities normally associated with real estate transactions. I am thrilled to have had the opportunity to get this advanced training and look forward to using my expertise to help my Buyers and Sellers achieve their desired goals.

Warmest Regards,
Pook

What Goes Up, Must Come Down

What Goes Up Must Come Down -- It's no secret that real estate is undergoing a painful correction. Though housing cycles aren't all alike, experts say in the long run there is a basic pattern.

Refinance Boom Might Not Follow Bailout

Refi Boom Might Not Follow Bailout -- A dramatic drop in mortgage rates has motivated some homeowners to wonder if they should refinance. A better question might be: Are they able to refinance?

Thanks to local lender Rob Kanyur for sharing the following info about recycling!

Recycling With a Payoff It's safe to say that recycling plays a significant role in most of our lives, and is very rewarding when we consider the ecological impact we collectively produce by our efforts to recycle, reduce, and reuse. But, what if I told you that "going green" could be financially rewarding as well? The following are some easy ways to make a little "green" for yourself, just for doing the little things you already do to lessen your ecological footprint. Like Money in the Bank In some states, RecycleBank.com is changing the way we take out the trash. This company takes the recyclables you already wheel out to the curb each week, and pays you for it by the pound – depositing points into a "bank account" redeemable for products and services in your area. The Recycle Bank takes paper, plastic, glass, phone books, cardboard, and cans. Music to Your Ears iPods and other mp3 players have turned CD collections into dust collectors. Instead of piling them up in your closet, check out FeedYourPlayer.com. This innovative company allows you to trade in your CDs and DVDs for items like flat-screen TVs and digital cameras at a major discount. Think how happy your children will be when you trade in your old CDs and DVDs for a new PlayStation®. Dial "S" for Savings Do you have a drawer full of old, out-of-date cell phones you don't use anymore? Well, GreenPhone.com wants to buy them from you! That's right, as long as your old phone still works, you could get anywhere from $1 to $70 for it. GreenPhone, in turn, sells the cell phones to people all around the world who can actually use them. Plus, you can also earn commissions for any referrals you provide. And, for every phone that GreenPhone buys, they plant trees through partnerships with American Forests and Sustainable Harvest. Electronic Deposit Similar to Greenphone, MyBoneYard.com takes your working flat panel TVs, laptops, and computers, erases all of your personal information, and then donates them to women's shelters, senior citizens, schools – or sells them to companies worldwide that can use them. What an e-volved concept! Who said recycling doesn't pay off? Take advantage of these great companies and help the environment at the same time. If you know of any other green companies or websites that I should add to this list, please give me a call! I'd love to hear how you're making recycling pay off for you and your family.