Arizona Homes and Land

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Mortgage rates drop to their lowest levels of 2011. Good time to refinance or buy a home. 30 year rates dropped to 4.39%. For the full article with details and current rates: http://bit.ly/oTbnE4

"The Magnificent 7" Great Places to live in Arizona. We are talking views, sunsets, wide open spaces and urban spaces, golf and quality of life.

Seller Financing...Is it a good alternative for buyers that cannot get a Mortgage Loan?

So many buyers that have had difficult times in the recent years long to get back into home ownership. Many have a recent bankruptcy, short sale, divorce, illness or other similar situation. These situations often prevent the buyer from qualifying for an FHA or conventional mortgage.

Some of these buyers have good jobs and even have accumulated money for a down payment. Yet, the bank will not approve them until their credit score improves.

There are opportunities to purchase a home from an owner that owns their home "free and clear". These owners may be interested in selling their home with a suitable downpayment (typically at least 10%) and carry the balance. This is known as "Seller Financing". Your MLS may indicate this has "Seller May Carry" Financing. A Realtor can find homes with this financing option. There are not as many homes for sale in this category.

Often in these situations the seller is providing this option to get a better price for their home. They know that many buyers cannot get a mortgage yet long to purchase now. Therefore, expect the "Seller May Carry" home to have a price to be above "foreclosure" prices in the neighborhood, a higher down payment than on a conventional loan and possibly, but not always, a higher mortgage interest rate.

Is this a good thing for the home buyer? Well, it depends on their importance of getting into a home now as compared to waiting for their credit score to improve. If one expects home prices and interest rates to start climbing in the near future, the decision is not as difficult. Their are real values financial and personal satisfaction to owning one's own home.

Tara-Nicholle Nelson of Inman News offers these comments, 

"First, you must take into consideration that you are receiving seller financing, which often comes with a premium price and a premium interest rate payable to the seller. Why? Because the seller is taking on some level of risk by virtue of forgoing the possibility that a buyer who can pay the full price would come along and buy the place, allowing them to cash out.

And they are often doing so on the word of someone who couldn't qualify for a loan to buy the home otherwise -- either because they are credit-, income- or asset-impaired or, as may be your situation, because a mortgage lender requires 25 percent or 30 percent down on an income property, while you may be willing or able to put down only the 10 percent you mentioned.

Additionally, seller financing can favor the buyer in that many of the mortgage-qualifying hoops through which both the buyer and the property would have to jump are eliminated, as are many of the costs that accompany mortgage loans, like origination fees, doc fees, and the like.

That's a long way of saying that I do believe some premium price is acceptable for seller financing. What the premium is is negotiable, but if the market could bear a lower price for the home at the terms on which you're buying it, it seems that you would have negotiated that lower price upfront.

I can't predict what the bottom of your investment is, but I can give you a number of things to watch out for. Because there's no mortgage lender demanding it, many buyers of seller-financed properties forgo protections like home inspections, title searches and title insurance. Don't fall into this potentially costly trap. Make sure you get these items done, and that you obtain hazard insurance on the property, effective the date the transaction closes.

Also, I'd encourage you to have a real estate attorney work with you and the seller on the contract and the seller-financing documents, as well as to record them with the county recorder's office.

This should prevent any of the tragically unfunny funny business that occasionally happens with seller-financed properties, like the one where the seller goes out and takes on a bunch of new mortgages against the property, then defaults on them, pocketing the buyer's cash and leaving them to be evicted when the house forecloses. That's certainly a worst-case scenario, but recording your interests in the property publicly will avoid this and a myriad of lesser evils.

In terms of evaluating your investment, for all but the most seasoned rehabbers buying foreclosures at extreme discounts, I am discouraging investors from the flip mentality of trying to project out when they'll recoup their money and how much their return will be.....

...Do that math and talk with your tax adviser before you remove contingencies or otherwise finalize the deal...."

This advice, especially to review the seller carry financing contract with your attorney is very important and well worth some additioinal expense.

Also, be aware an offer can still be made on the asking price. There are not as many "seller carry" homes for sale so the seller has more leverage to hold to their price. However, if you do not ask you will not receive. Be confident and submit your offer.

May I wish you the best.

With home prices continuing with record low prices and interest rates still hovering around 5%, a home is still very affordable. The most affordable in the past 20 years. Often more affordable than renting.

In addition to being more affordable now than in a long time, a home offers personal satisfaction, tax benefits and the possibility of traditional appreciation in future years.

The affordability has reached a 20 year record as reported on February 17, 2011 by Inman news: "Home affordability rose to its highest level in at least 20 years in the fourth quarter of 2010, according to an index released by the National Association of Home Builders and Wells Fargo today.

The Housing Opportunity Index found that 73.9 percent of new and existing homes sold in the fourth quarter were affordable to families earning the national median income of $64,400 -- surpassing the previous high, 72.5 percent, recorded in the first quarter of 2009.

"Today's report shows that housing affordability at the end of 2010 was at its highest level since we started computing the HOI," said Bob Nielsen, NAHB's chairman, in a statement. "However, while this is good news for consumers, both homebuyers and builders continue to confront extremely tight credit conditions, and this remains a significant obstacle to many potential home sales."

Before 2009, the index had never hit 70 percent and rarely topped 65 percent, the association said. Last quarter was the eighth straight quarter the index was above 70 percent."

The old investment adage of, Buy Low and Sell High is something to consider with homes being as affordable as they are today.

Short Sale Questions Answered from Jeff Masich: http://www.trulia.com/blog/jeffmasich/2011/02/short_sale_your_home_in_arizona_top_questions_answered

Ten reasons to move to Scottsdale

Scottsdale has awesome weather year round. A perfect hub to explore the great desert southwest. A resort atmosphere awaits with resort hotels, golf, family living, parks, shopping and more. Scottsdale has it all. A wonderful place to call home. The open spaces and warm temperaturs beckon. Did I mention, no snow?


Scottsdale is the "West's Most Western City"

Located in the beautiful Sonoran Desert, Scottsdale, Arizona is bordered by Phoenix to the west and the McDowell Mountains on the east.

Per the city of Scottsdale: Scottsdale is annually rated among the nation’s most desirable communities to live in, visit and do business in. Check out the latest rankings.

Scottsdale’s vibrant downtown is considered the finest urban center in Arizona. It is home to more than 90 restaurants, 320 retail shops and more than 80 art galleries. Scottsdale’s McDowell Sonoran Preserve, in the city’s northern reaches, is the largest urban wilderness area in the United States and features more than 60 miles of trails through diverse and scenic desert terrain.

Scottsdale Facts

County: Maricopa
Incorporated: 1951
Slogan: "The West's Most Western Town"
Official Food: Chili, by 1994 Mayoral proclamation
Population: 240,000 (Sixth largest city in Arizona)
Size: 184.2 square miles, stretching 31 miles from North to South

Top Ten List:
1. Beautiful weather!
2. Shopping/ Art Galleries
3. Parks and Biking/Hiking trail systems
4. Resort hotels
5. Dining
6. Schools
7. Proximity to Phoenx sports teams and ASU in Tempe
8. Western and Urban life mixed
9. Goff courses galore!
10.Explore the great desert southwest

To learn more about Scottsdale living: http://www.arizonahomesland.com/scottsdalehomes.html

Many people ask, is this a good time to buy?

The old investment adage says,

"Buy Low, Sell High"

Prices are low. Investors are starting to purchase the bargain homes in Arizona...and there are many available.



With credit to the Wall Street Journal article, written by Brett Arends (9/16/10):

"Why is now a great time to buy? Here are 10 reasons:

1. You can get a good deal. Prices are down 30 percent on average. They're at a level that makes sense for people's income.
2. Mortgages are cheap. At 4.3 percent on average for a 30-year fixed-rate mortgage, your costs to own are down by a fifth from two years ago.
3. You can save on taxes. When you add up the deductions for mortgage interest and others, the cost of owning can drop below renting for a comparable place.
4. It'll be yours. The one benefit to owning that never changes is that you can paint your walls orange if you want (generally speaking; there might be some community restrictions). How many landlords will let you do that?
5. You can get a better home.In some markets, it's simply the case that the nicest places are for-sale homes and condos.
6. It offers some inflation protection. Historically, appreciation over time outpaces inflation.
7. It's risk capital. If the economy picks up, you stand to benefit from that, even if you're goal is just to have a nice place to live.
8. It's forced savings. A part of your payment each month goes to equity.
9. There is a lot to choose from.,There are some 4 million homes available today, about a year's supply. Now's the time to find something you like and get it.
10.,Sooner or later the market will clear. The U.S. is expected to grow by another 100 million people in 40 years. They have to live somewhere. Demand will eventually outpace supply. "

Unfortunately, many homeowners in Arizona are facing the difficult situation of a Foreclosure or a Short Sale. These homeowners, wonder about the balance they will owe after the foreclosure or short sale.

Often homeowners/borrowers are not aware that Arizona is a "Non-Deficiency" State for short paid mortgages (Foreclosures and Short Sales). This means that, unless there are specific issues in a borrower's loan agreement, which an attorney can advise the borrower on, the lender is prohibited by Arizona Law Statue 33-729 from pursuing a judgment against the borrower if the home has sold for a deficiency. A deficiency is an amount less than the mortgage balance due to a diminished value of the home (or secured property).



Specifically, Lenders are prohibited by Arizona Law Statute (33-729) from obtaining deficiency judgments in foreclosures where the land size is 2.5 acres or less and where the property was used as either a single one-family or single two-family dwelling. The actual language from the Arizona Statue follows:

Arizona Law: Statute 33-729. Purchase money mortgage; limitation on liability

A. Except as provided in subsection B, if a mortgage is given to secure the payment of the balance of the purchase price, or to secure a loan to pay all or part of the purchase price, of a parcel of real property of two and one-half acres or less which is limited to and utilized for either a single one-family or single two-family dwelling, the lien of judgment in an action to foreclose such mortgage shall not extend to any other property of the judgment debtor, nor may general execution be issued against the judgment debtor to enforce such judgment, and if the proceeds of the mortgaged real property sold under special execution are insufficient to satisfy the judgment, the judgment may not otherwise be satisfied out of other property of the judgment debtor, notwithstanding any agreement to the contrary.

B. The balance due on a mortgage foreclosure judgment after sale of the mortgaged property shall
constitute a lien against other property of the judgment debtor, general execution may be issued thereon, and the judgment may be otherwise satisfied out of other property of the judgment debtor, if the court determines, after sale upon special execution and upon written application and such notice to the judgment debtor as the court may require, that the sale price was less than the amount of the judgment because of diminution in the value of such real property while such property was in the ownership, possession, or control of the judgment debtor because of voluntary waste committed or permitted by the judgment debtor, not to exceed the amount of diminution in value as determined by such court.

It is my opinion that a professional short sale negotiator shoud represent you and your Realtor in working out a full release of the deficiency in writing to allow you to have "peace of mind" that the lender will not pursue payment for the deficiency. The lender is prohibited by law from doing so. However, if the borrower signs a separate note to he lender for the deficiency, that new note would govern the deficiency balance owed on the debt. A Realtor often does the negotiating for the borrower (and often are successful), but this is a complex issue. The bank's have professional "Loss Mitigators" that try to maximize the bank's return on a short sale to avoid an even larger loss in a foreclosure. You have the law behind to ask for a full release of the deficiency amount.

In my practice, I will bring in a negotiator that will be the advocate for my client in the short sale and will, if the home is sold at current market value, will obtain a deficiency/lien release from the lender. My goal is to get the house sold at market value, the negotiator's job is to get the release for the borrower on the deficiency.

In either case, Short Sale or Foreclosure, the Arizona Law statutes protect the homeowner. Both will negatively affect the borrowers credit score. A Short Sale will allow the homeowner to re-apply (in most situations) for a new home loan sooner than on a foreclosure.

Borrowers need to know that Arizona Law makes it a "Non Deficiency" State. Again, an attorney's advice should be obtained to determine if the borrower has a special situation outside of the Arizona Statute. Unless, the borrower feels that they have a committed responsibility to pay the deficiency, or are trying to protect their credit rating, or have available funds to pay the deficiency, your Realtor and Short Sale Negotiator have the right to ask the lender for a full release under Arizona Statue 33-729.

Jeffrey Masich, is  a Realtor in Scottsdale Arizona with a BS in Accounting, MBA, Certified Credit Executive and a Certified Short Sale Negotiatior.

Jeffrey Masich, Realtor
Arizona Homes and Land
HomeSmart Realty
Scottsdale, Arizona
http://ArizonaHomesLand.com

There are four reasons that buyers should consider buying a home in Arizona now rather than later in the year. Much of this information is supplied by a RISMedia article dated March 24, 2010.
 

Buying a home is one of the biggest decisions an individual can make. So it’s understandable that one considering a home purchase may take their time to avoid rushing into such a large financial commitment. However, several factors might leave prospective home buyers who don’t purchase a property now wishing they had taken action sooner. 


 

“Current market conditions have created a perfect storm of sorts that has made it an ideal time to purchase for first-time and trade-up buyers alike,” said James M. Weichert, president and founder of Weichert, Realtors. “Those who have the means and the desire to buy now but don’t, aren’t likely to see such a great opportunity again anytime soon.”
 

1. They won’t receive a sizeable amount of money from Uncle Sam.
For the past two years, the federal government has offered a home buyer tax credit to help stimulate the economy. But that financial incentive is set to expire soon. First-time buyers who aren’t under contract to purchase a home by April 30, 2010 will leave the $8,000 that is available to them through the tax credit on the table. Meanwhile, repeat buyers will miss out on the opportunity to collect up to $6,500 from the government.
 

2. They might not lock-in on the historically-low interest rates.
Thanks to measures taken by the Federal Reserve including the purchasing of mortgage-backed securities, interest rates have remained historically-low for several years. With the economy beginning to show signs of recovery, it is widely believed that the government will soon put an end to these stimulus efforts.
 

If that happens, many economists believe we will begin to see a sharp increase in interest rates which could result in a much higher monthly payment for those who wait. For example, an interest rate increase of 1% on a 30-year fixed mortgage of $300,000 could cost a buyer $188 more a month or $67,000 more over the span of the entire loan.
 

3. They might miss out on record home price affordability.
Home price affordability is at its most optimal level in decades. As a result, those who wait to buy will likely pay more for the home they purchase than what that same home would cost right now. In fact, home prices have already begun to rise slightly in some markets. Instead of getting a better bargain, waiting to buy a home might net buyers a higher purchase price, less appreciation and less house for their buck.
 

“There is no time to waste for anyone who wants to take advantage of this great buying opportunity. Particularly for those who have a home to sell first,” added Weichert. “If you are prone to saying ‘what if’ and wondering what could have been, you will thank yourself down the road for buying now.”
 

4. Free Grant Money still available for now in Arizona.
For those buying a bank owned home in selected zip codes (see eligible zip codes for the state of Arizona free grant program: http://yourwayhomeaz.com/pdf/EligByZipCode.pdf ), the State of Arizona still has free grant money for up to 22% of the purchase price. This grant program to help move bank owned homes is funded by the Federal economic stimulus program. The City of Phoenix has their own program.

Federal grants help families dreaming of a home with $15,000 grants from the City of Phoenix when purchasing a foreclosed or bank owned home.



Per Connie Cone Sexton of the The Arizona Republic in an article dated February 1, 2010, the poor econmy has produced opportunities for homebuyers with grants of up to $15,000.

Phoenix has been awarded an additional $60 million in a second phase of the Neighborhood Stabilization Program, funded through the American Recovery and Reinvestment Act of 2009. The U.S. Department of Housing and Urban Development awarded a total of $1.93 billion to states, cities and organizations. Phoenix, along with its partners, received the sixth-largest grant amount in the competitive process.

Grants of up to $15,000 on mortgage loans are made possible by a nearly $40 million federal grant given to Phoenix for a Neighborhood Stabilization Program. The city program works to rid neighborhoods of abandoned, foreclosed properties through acquisition, rehabilitation, demolition, redevelopment and financial incentives.

Individuals may receive up to $15,000 from the city and may use the money for a down payment and closing costs. So far 31 people who benefited from the grant. Another 38 have pending contracts. Now, others like them that dream of owning a home will get a chance. To learn more about the different programs and qualifications, click: http://phoenix.gov/residents/stabilization/nsp/programs/index.html

Can't decide what to 'fix up' on your home next? Top 10 things that buyers want.



Decisions Decision! What shall I fix up on my home next?

This can be perplexing decision. What do you want to personally enjoy in your home? Or....what do buyers consider most important when buying a home? Whch choice does one make?

If you love your home and do not want to ever move....maybe a built in HO Train Set going from room to room or possibly a private bowling alley. Maybe... but these will not attract the majority of buyers.

Source: MarketWatch, Steve Kerch (01/30/2010), Paul Cardis, CEO of Avid Ratings, which conducts an annual survey of buyer preferences, identified these must-haves in new homes:

1, Large kitchens with islands
2. Energy efficiency, including energy-efficient appliances, super insulation, and high-efficiency windows.
3. Home offices
4. Main-floor master suite
5. Outdoor living space
6. Ceiling fans
7. Soaking tub in the master suite and/or an oversize shower with a seating area
8. Stone and brick exteriors rather than stucco or vinyl
9. Community walking paths and playgrounds
10. Two-car garages, but three-car garages are even more desirable

Buying a foreclosed home from Fanne Mae and their "Homepath" financing just got even better.

Fannie Mae owns many repossesed homes and attempts to assist buyers to buy and fix up the homes to improve neighborhoods. A list of Fannie Mae homes available for sale can be viewed on their website. Fannie Mae sells homes through Realtors, so contact your Realtor for more information.

This program is perfect for young buyers with good credit but not much savings.



Typical benefits on Homepath Financing when purchasing a Fannie Mae owned home include low down of 3%, no bank appraisal fee, no Mortgage Insurance (PMI), assistance on closing costs often are available. A Homepath lender must be selected from the Fannie Mae Homepath website.

However, things just got even better! On January 28, 2010 Fannie Mae sent this announcment,

"Fannie Mae Offers New Closing Cost Assistance and Appliance Incentive for Homebuyers

Fannie Mae is offering a 3.5% incentive for buyers who purchase and close on a Fannie Mae-owned home between January 28 and April 30, 2010. Buyers purchasing properties listed on HomePath.com that are closed within this period may receive up to 3.5% of the final sales price for:
· Closing costs;

· The purchase of new Whirlpool® appliances by Fannie Mae; or

· A mix of closing costs and appliances, at the buyer's discretion, up to the maximum 3.5%.

To be eligible for this incentive:

· Offers must be accepted on or after January 28, 2010;

· Property sales must close before May 1, 2010, and;

· Buyers must be owner-occupants (investors are excluded).

The incentive reinforces the organization's commitment to stabilizing communities and assisting buyers. For more information about this incentive, visit www.HomePath.com, read the press release on fanniemae.com, or contact a Fannie Mae listing broker."

Using 3.5% of the purchase price, paid for by Fannie Mae through Homepath financing for closing costs or new appliances. That is a good deal!

If you would like to know more about purchasing Arizona homes and land, or need recommendations on low down financing options feel free to contact me.

Yes, everyone talks about this $8,000 Federal Tax Credit for first time homebuyers and then there is this $6,500 for existing homeowners that are buying another home. What are the facts and what is needed to qualify? How long does a homebuyer have to take advantage? As Sgt. Joe Firday of the old TV show, 'Dragnet' used to say "Just the facts Ma'am".



The facts, from Ken Trepeta is the Director, Real Estate Services for the National Association of REALTORS® and RISMEDIA, January 7, 2010.

"As we begin 2010, both real estate professionals and home buyers have something to look forward to and more importantly, take advantage of—the extended and expanded home buyer tax credit.....Now, for a limited time in 2010, the $8,000 home buyer tax credit will still be available to first-time home buyers and certain current homeowners will also be eligible for a $6,500 credit.

Who can claim the credit?

“First-time home buyers” who purchase homes between November 7, 2009 and April 30, 2010 are eligible for the credit. To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.

For current homeowners purchasing a home during the same time frame, they are also eligible for a tax credit, so long as the home being sold or vacated was their principal residence for five consecutive years within the last eight. To elaborate, it must be the same home; it is not enough that they have been homeowners for five consecutive years, they must have been in the same home for five consecutive years.

Another key point is that the existing home does not need to be sold. One must, however, occupy the new home as a principal residence and do so for three years or risk recapture of the credit. Also, the new home does not need to cost more than the old home despite the concept that it is directed at “move up” buyers.

How much is the credit and what are the income limits?

The maximum allowable credit for first-time home buyers is $8,000 or 10% of the sales price, whichever is less. For current homeowners, it is $6,500 or 10% of the sale price, whichever is less. Under the extended home buyer tax credit, single buyers with incomes up to $125,000 and married couples with incomes up to $225,000 may receive the maximum credit.

The credit decreases for single buyers who earn between $125,000 and $145,000 and between $225,000 and $245,000 for home buyers filing jointly. The amount of the tax credit deceases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income – over $145,000 for singles and over $245,000 for couples – are not eligible for the credit.

What are the deadlines for qualifying for the credit?

Under the extended home buyer tax credit, as long as a written binding contract to purchase a home is in effect on April 30, 2010, and the deal is closed by July 1, 2010, one can claim the credit.

Will the tax credit need to be repaid?

No, the buyer does not need to repay the tax credit if he/she occupies the home for three years or more. However, if the property is sold during this three-year period, the full amount of the credit will be recouped on the sale. Another provision of the law waives the recapture provisions for service members who receive orders that require them to move.

Are there any other critical provisions?

-There are three provisions people should be aware of:
-There is an $800,000 limitation on the cost of the home
-The purchaser must be at least 18 years old on the date of purchase
-For a married couple, only one spouse must meet this age requirement and dependents are not eligible to claim the credit

Finally, as an anti-fraud measure, purchasers must attach documentation of purchase to his/her tax return claiming the credit. Normally this would be a copy of the HUD-1, but could include other documents memorializing the settlement.

As with all tax matters, responsibility for complying with the tax code belongs to the taxpayer. Real estate professionals should recommend that their buyers consult their tax professionals to ensure eligibility for the credit and the proper way to claim the credit. For more information including the required IRS forms please contact the Internal Revenue Service at 800-829-1040."

Buyers, that have waited to purchase a home for prices to drop further may have waited too long.

In an ariticle by J. Craig Anderson in the Arizona Republic, December 18, 2009 it was reported that Arizona State University, W.P. Carey School of business indicated that median home prices have increased every single month in 2009 since April through November. That makes 7 consecutive months of increases.

The median home price in the Phoenix metro area was $117,500 in April. With increases every month, the median home price for November was $135,000.

There are some indications that investors are leading the way, as they realize there are many bargain homes on the market.

With ongoing incentives to purchase for individual home owners like the Federal Tax Credit of $8,000 for a first time buyer or $6,500 for an existing homeowner plus free grant money for the purchase of a bank owned program through the City of Phoenix or the State of Arizona, this is a good time to buy. These programs are due to expire in the first half of 2010. Interest rates are still low, for now.

Need to sell your home in the near future? Or, just make it more enjoyable to live in?



According to the HomeGain survey, the top five home improvements that Realtors recommend to home sellers based on cost and return on investment (from highest to lowest ROI) are:

1. Cleaning and de-cluttering ($200 cost / $1,700 price increase / 872% ROI)
2. Home staging ($300 cost / $1,780 price increase / 586% ROI)
3. Lightening and brightening ($230 cost / $1,300 price increase / 572% ROI)
4. Landscaping ($320 cost / $1,500 price increase / 473% ROI)
5. Repairing plumbing ($385 cost / $1,250 price increase / 327% ROI)

If you don't feel like you know where to start call your Realtor, they know what improvements will get the "I think we could live here" response from buyers.

Feel free to contact me with any questions or comments. I would be pleased to help sellers in Scottsdale, Paradise Valley, Fountain Hills and Northeast Phoenix. A Realtor from my office can help you anywhere in Arizona.

Nestled near Camelback Mountain, surrounded by golf courses, lakes and multi-use paths, McCormick Ranch was the first truly master planned community beginning in the 1970s, showing Scottsdale leadership in thoughtful and meaningful growth leading to a better quality of life and enjoyment for citizens. McCormick Ranch (link McCormick Ranch http://arizonahomesland.com/mccormickranchhomes.html) is in the heart of Scottsdale, close to Fashion Square Mall, Scottsdale resort hotels, marvelous dining, golf, hiking, lakes, parks and excellent education.




The Arizona Diamondbacks and Colorado Rockies like McCormick Ranch in Scottsdale so much that they are moving their Spring Training Homes adjacent to the Ranch on tribal land for the 2011 season. An 11,000-seat ballpark and a complex that includes 12 practice fields, training facilities and offices, hotels and restaurants are being built accross the street from McCormick Ranch on Pima Road just north of Indian Bend. Already due for opening nearby in early 2010 is the 15 story Talking Stick  Resort, Spa and Casino with five restaurants. This is adjacent to the beautiful Talking Stick Golf Course. Also, about 1 mile away is the future home of a new Ritz Carlton Hotel on the edge of McCormick Ranch at Scottsdale Road and Indian Bend.

Yes, McCormick Ranch is a wonderful place to live! Jeff Masich, a McCormick ranch resident would be pleased to assist in the real estate needs of your friends and family in Scottsdale Arizona or the surrounding area.

Looking for a 'Great' Home Deal + Financng on a Fannie Mae Repo Home? Low price + Low down payment (3%), no mortgage insurance and light renovaton financing from Fannie Mae REO Homes. Homeowner or Investors both eligible. For more information see the special Fannie Mae foreclosure website for a list of the Fannie Mae homes and special financing terms at http://homepath.com or contact Jeff Masich at http://ArizonaHomesLand.com 'Arizona Homes and Land' at HomeSmart Real Estate jmasich@usa.com

What a deal!

The State of Arizona is offering up to a $44,000 grant (for a $200,000) house from the State of Arizona. Sound to good to be true? Let me explain.
The State of Arizona has a really good program if you buy a foreclosed or bank owned (REO) property.

The State program is complex and you really need to talk to your lender or financial advisor. There is a 28 page manual available from the State of Arizona. The State also requires you to take an 8 hour class to qualify so you fully understand the benefits. For more details see www.yourwayhomeaz.com.

Briefly, you can get up to 22% of the purchase price of a home covered as a down payment and you do not have to pay this money back if you meet certain requirements, including living in the house for 15 years. So, if you purchased a $200,000 house the amount after the free down payment grant would be $156,000. Note, the 22% free money on a less expensive $150,000 home purchase would be $33,000! This requirement of living in the house is apparently to weed out investment speculators and to encourage someone to move in, stay and love and care for the house. However, if you do not plan to live in the house for 15 years (above $40,000 benefit) you can still get free down payment money, although less, if you live in the house for reduced periods (example: 5 years for up to a $15,000 benefit or 10 years for $15,000 to $40,000 benefit). See the manual and take the required class for details. This is found money and only qualifies if you buy a Bank Owned property (no short sales or regular sales permitted).

The only change since the State manual was distributed is that the purchase price needs to be 1% below the appraised value not 5% like originally written.

Take a look at the State manual, talk to your lender, and get ready to sign up for the class. This is too good to pass up.

Contact me if you have any questions, will answer you the best I can. However please, note regarding the facts and numbers that I have presented: I am not a CPA, talk to your financial advisor or lawyer for specific questions about taxes and grants not answered in the manual or the required class. There are also income qualification guidelines as well as other requirements. My assumptions may not be correct and the facts for your individual situation may be different.

http://ArizonaHomesLand.com

Are the weather  reports in the North and East talking about snow?

Get away to the Great Desert Southwest in Arizona! Blue skies, warm temperatures, golf, hiking, horseback riding and the majestic beauty of open spaces await.

Vacation rentals, retirement homes, ranches, investments? Arizona has fantastic bargains right now. This may be the perfect time to enjoy the awesome beauty of the Arizona, Scottsdale or any part of the state. http://www.ArizonaHomesLand.com

UPDATE on the "discount" you can expect  when purchasing a REO home  in the  Phoenix metro market

"Discount" in this case is defined as the purchase price of a REO (Lender owned real estate) in a neighborhood as a percentage of other 'Non-REO' homes selling in the same neighborhood or surrounding neighborhoods.

Currently expect the discount for the buyer in this range:

Best 50%

Average 35%

Worst 25%

This depends on the condition of the property and the movement of the homes in the neighborhood. The farther out from downtown (example Buckeye and Queen Creek,) expect the discount to be greater on average.

A consideration almost as important as the discount is the amount of repairs required to make the home liveable. A low discount without structural repairs may be more desirable than a large discount with major repairs. Cosmetic and non structural repairs is so important. The net move-in cost is the key. If you have additional questions or would like to see Arizona Homes and Land for sale with a high buyer discount and low structural repairs, see: http://www.ArizonaHomesLand.com

Arizona sunsets are beautiful and awe inspiring. Take a look at this collection of sunsets throughout the desert southwest. Jeff Masich shows Arizona Homes and Land with stunning views....and of course....sunsets.

Need help with your down payment? Many buyers are just a bit short.

Well the City of Phoenix has a plan through the Federal stimulus funds that allows up to $15,000 in down payment and closing cost money to be borrowed and not be paid back until the home is eventually sold. This program is available for foreclosed homes, townhouses and condominiums.

The Phoenix program is called 'Home Ownership Assistance' through the Federal 'Neighborhood Stabilization Program' (NSP) and is only available for homes that have been foreclosed on and are bank owned. The purpose is to help get those homes sold and off the market with the result of improving Phoenix neighborhoods. Other cities in Arizona have similar programs. http://www.ArizonaHomesLand.com

See the link from the City of Phoenix for more information for you the buyer or for your lendor: link: phoenix.gov/nsd/nspa.html.

What is a 'Short Sale'? The “short” sale definition, which deals with the bank’s willingness to release their lien or security interest in a home if it is being sold “short” or for less than the amount that the owner/borrower owes on the mortgage loan to the bank(s).  

Behind the scene, the bank(s) (one or two) are negotiating with the owner/borrower for the owner to pay the difference or a portion of the difference between the sale price and the amount on the loan. This negotiation is somewhat invisible to the prospective buyer, but is the main reason that the offer/purchase process can take so long (months). In many cases, this proposed settlement payment arrangement by the owner/borrower is never approved.

The bank may eventually send the property into a foreclosure if the owner does not agree to sign a note to pay a portion of the “short” amount. The signing of a short sale note by the owner/borrower will not be secured by a mortgage lien associated with the home as it has been released when sold to the new buyer. The net effect of the note for the short amount lowers the amount the bank(s) will have to “write off” or take a loss on for the amount the owner/borrower owes. Note, a foreclosure or short sale, does not prevent the bank from continuing to collect from the owner/borrower, especially if their financial situation improves after the home is foreclosed upon or sold.  

The negotiation in the short sale process has several major goals: 

1. Owner/borrower looks to sell home for less than is owed and have the bank(s) release their lien on the property
2. Owner/borrower looks to protect their credit rating somewhat in a short sale as opposed to a foreclosure
3. Owner/borrower asks the bank, based on their financial hardship, to write off the balance owed or write off a portion of the balance owed after the short sale proceeds are paid to the bank
4. Bank looks to prevent a foreclosure, expecting the home to get a higher price with the owner taking care of the property. Many foreclosure properties are abused by angry owners. Conversely, a short sale property tends to be in better condition.
5. Listing agent or hired negotiator for owner/borrower presents offers received to the bank(s) negotiators and works on an exit strategy where the bank will write off all, some or none of the difference between the selling short sale price and the amount that the owner owes on the property.
6. Banks are extremely backed up in the short sale negotiation area. Often they are in no rush to do anything. Strangely enough, owners/borrowers that are striving to pay some of their monthly mortgage are also put to the ‘back of the line’ by banks when assigning a negotiator. Banks are often more motivated to negotiate on homes where the owner/borrower is making no monthly payments. Unfortunately, this penalizes the owner/borrower that is trying to ‘do the right thing’.  

For your reading. An Interesting article by Mary Ellen Podmolik on the frustration in dealing with short sales dated today can be read at this link: rismedia.com/2009-09-26/short-sales-spread-across-real-estate-market-leaving-frustration-in-their-wake/

Note, I am not a CPA or financial counselor, see you’re your accountant or lawyer if you ever have specific questions in these areas. http://www.ArizonaHomesLand.com

When is the best time to buy a home? Some things never change...BUY LOW and SELL HIGH!

If you have not noticed that time is now. House prices in Arizona are at their low points at this very moment. The last figures are in, for the first time in a year house prices have 'nudged' upward. Not much, mind you, but it appears the bottom of the market has been reached. Look for prices to increase going into 2010.

Well if we are at the bottom, a smart buyer will BUY LOW. Not only are home prices low in the Phoenix metro, but mortgage rates continue to be at record lows ranging from 4.98% to 5.04% for a 30 year fixed loan. This makes buying a home very affordable.

The time has never been better. Buy a home to live in, retire in, vacation in or lease out? The answer is yes, yes, yes and yes.  http://www.ArizonaHomesLand.com

Mortgage rates dropped this week to 5% APR on 30 year fixed. Wow! That, pluse $8K Federal Stimulus tax credit expiring 11-30-09 makes it attractive to buy instead of renting for first time home buyers. Home prices are very low, in the Phoenix metro area but have started to slowly increase in the past few months. This is a fantastic time to buy. http://www.ArizonaHomesLand.com

Purchasing a Short Sale home? It is a good idea. There are wonderful buys in the Phoenix metro market. Act fast to get the $8,000 Federal Tax Credit through the stimulus plan. The expiration date is December 1, 2009 for homes that close escrow by that date. The plan is for first time home buyers or someone that has not owned a home in the past three years.

Why do you need to act fast? Short sale decisions can take 3 months by the seller's bank due to heavy workloads. When making your short sale offer, make sure the bank's short sale offer guidelines are followed exactly. Don't give the bank an opportunity to say a "T" was not crossed or an "i" was not dotted in their paperwork.

Remember, on a short sale, the bank is working with a seller that is 'under water' on their mortgage. The seller owes more on the house than the house is currently worth. The bank must approve a "short sale". A short sale is a house that is being sold "short" or less than the amount of the loan. This approval process is handled by the bank's "Loss Mitigation Department". Often there are weeks or months of back logs of short sales that must be approved.

If there are any mistakes or documents left out, your offer could be put back in a "holding pattern" by the bank. Make the bank's job easier and submit all paperwork exactly as suggested.

Missing the December 1, 2009 Tax Credit deadline would be unfortunate. If you act now and submit your paperwork correctly, you have the chance to get a great purchase and the tax credit to boot! Good luck. http://www.ArizonaHomesLand.com

Have you heard? The Real Estate market has turned. After several years of declining prices for resale homes, prices have started to increase again. This is the good time to buy a home. Prices and interest rates are low. http://www.ArizonaHomesLand.com