What Type of Home Do You Want?

Maybe you know what you want....3 bedrooms 3 baths 3 Car garage in an Active Adult Community with mountain views.  If so, then your Realtor can immediately begin to look for only that type of home.  Otherwise, if you don't know what you want but "you'll know it when you see it" you need to take a moment and make a list of "needs" and "wants".


Consider what specific features you are looking for like the distance to work, school and overall location.  Consider what you want the exterior to look like and what you would like for the interior.  Decide on a type of home and don't overlook the systems such as security, heating, electrical and energy saving options.  As for the extras, consider whether you want a pool, den, clubhouse amenities, office or spa.  It will help you define what you really have to have and really want to have in a house and neighborhood. 


This will help a Realtor considerably when searching for the right home to show you.  When you look at homes, be sure to bring your list with you & pick up brochures at each home so you'll remember which home offered what.  I also name each house with a memorable nickname which helps you to recall the home (golf home or pet house or pool home) as well especially after you've looked at 5 or 6 homes in one day.


NEED MORE INFO CONTACT ME at my I Sell AZ Sunshine website.

WHAT TITLE INSURANCE PROTECTS AGAINST

The matter of title insurance arises in every real estate transaction.  For the Seller, the title policy covers the insured for their loss up to the amount of the policy.  It assures owners that they are acquiring marketable title and is designed to eliminate risk or loss caused by defects in title for the past.


For the Buyer and/or Lender, title insurance is issued to guarantee to the insured party or parties "Free and Clear" title to the property being insured, from the beginning of time until the date and time the buyer acquires title to the property.  In the case of a lender's policy until the date and time the lender's loan document is recorded against the property.


"Free and Clear" is defined as there being no loans, liens, encumbrances, back taxes, easements or covenants, conditions or restrictions against the property that were not disclosed on Schedule B of the commitment for title insurance issued by the the insuring company.


Here's a few things Title Insurance protects against:
*False Impersonation of the True owner of the property
*Forged deeds, releases or wills
*Undisclosed or missing heirs
*Mistakes in recording legal documents
*Deeds by persons of unsound mind
*Deeds by minors
*Deeds by persons supposedly single but actually married
*Fraud
*Liens for unpaid inheritance, income of gift taxes

FOR MORE INFO CONTACT ME AT MY I Sell AZ Sunshine website.

WINTER VISITOR---TO BUY OR RENT A HOME??

Arizona vacation rentals have some of the most sought out space, especially for those who are getting away during the frigid northern winters.  Wintering way away from home by purchasing a home or your own vacation rental has its advantages but so does renting prior to taking the leap to buy.

If you are renting, you do not have to worry about any upkeep or maintenance of the rental home as there is always someone to call for that job. For instance with vacation rentals in the Gold Canyon, Mesa, Queen Creek, Sun Lakes or Scottsdale areas, most are going to have pools and spas for your use which don't require any maintenance by you the tenant.  All you have to provide is the money to pay for your rental.

On a positive note, you may still be motivated to buy after you spend some time doing your homework. Never overlook the fact that you can both buy and rent your own vacation home in one of the most popular vacation markets to date as well as have a second-home tax write-off.  Furthermore, since this is a second home, you can opt to migrate and head North for the summer. Any qualms about purchasing can be overcome by testing the waters first and spending time in an Arizona vacation rental to make up your mind. Give it a month and talk to local homeowners about their experiences and the local housing climate.  Since it is a buyer's market the housing sector will get it shot in the arm in due time.  AND, while you are visiting sunny Arizona be sure to apply SPF 32 sunscreen liberally and enjoy yourself.

NEED MORE INFO CONTACT ME AT MY I Sell AZ Sunshine website.

Bankruptcy Won't Necessarily Save Your Commerical Property

A Chapter 11 bankruptcy may buy some time for commercial property owners facing a loan foreclosure, but it may not be the best option for those who are hoping to hang on to their property.

Why not? Chapter 11 was designed to help businesses continue to operate but not necessarily to protect the interests of the borrower.  A bankruptcy affords little protection for a property held as a single asset in a special purpose entity.  Also, continual attorney and advisory fees during a bankruptcy can impose an additional financial burden that may outweigh any benefit from the reorganization plan.

Best option is try to do all that you can to arrive at a workout option with your lender. Remember that there needs to be some justifiable reasons for the lender to consider giving concessions.

Try working with the lender in second place to reach an agreement with the first lien holder.  This strategy is very useful when the property's value has fallen below the amount of the first lien and a workout provides a better option for the secondary lender to be repaid.

Most lenders don't want to foreclose. A workout that lets owners and lenders ride out the downturn is often the best option for all parties.

NEED MORE INFO CONTACT ME AT MY I Sell AZ Sunshine website.

TRICK OR TREAT! MSN EMAIL BEEN HACKED LATELY? READ THIS!!!

TRICK OR TREAT!!!Am using My Computer Works to help with any computer issues and they spent 70 minutes on my computer yesterday trying to remove all the email addresses that hacker put in when they sabotaged my account over Labor Day.  Turns out I had to call MSN support and have them go in and remove the addresses because they were on their Server and not actually in my address book where I could remove them.  I suggest checking your computer to see if yours has the same crap in it.  It's not supposed to be a danger but I don't like a bunch of weird email addresses that I can't take out...always afraid of some implanted virus that could explode at anytime....muy paranoid am I.  The scary thing about this is that when I am in MSN these addresses don't show up as they are not in my actual address book.  But, if I go out on 
Internet Explorer or Foxfire Mozilla, go into www.msn.com and go to send a new message they are in the online address book.  By typing the letter "a" into the "TO:" and then scrolling down all the a's I accidentally found all the hacker's addresses they used when they sent out their emails asking for money.  I went to the b's and did the same thing finding more.  I went down the whole alphabet and they stopped adding the emails when they got to K.  Anyway after talking to two MSN Tech Support people at midnight (had to insist on a supervisor...the first person didn't listen and kept giving me a canned pitch) I finally sent all the email addresses to butterflyhelp@hotmail.com(the guy's English was so terrible I had to ask him several times what he was saying...erggggggg. Try having a English as a second language person say Butterfly!!

MSN EMAIL BEEN COMPROMISED? TRICK OR TREAT! BETTER CHECK THIS OUT!!!!

TRICK OR TREAT!!!Am using My Computer Works to help with any computer issues and they spent 70 minutes on my computer yesterday trying to remove all the email addresses that hacker put in when they sabotaged my account over Labor Day.  Turns out I had to call MSN support and have them go in and remove the addresses because they were on their Server and not actually in my address book where I could remove them.  I suggest checking your computer to see if yours has the same crap in it.  It's not supposed to be a danger but I don't like a bunch of weird email addresses that I can't take out...always afraid of some implanted virus that could explode at anytime....muy paranoid am I.  The scary thing about this is that when I am in MSN these addresses don't show up as they are not in my actual address book.  But, if I go out on 
Internet Explorer or Foxfire Mozilla, go into www.msn.com and go to send a new message they are in the online address book.  By typing the letter "a" into the "TO:" and then scrolling down all the a's I accidentally found all the hacker's addresses they used when they sent out their emails asking for money.  I went to the b's and did the same thing finding more.  I went down the whole alphabet and they stopped adding the emails when they got to K.  Anyway after talking to two MSN Tech Support people at midnight (had to insist on a supervisor...the first person didn't listen and kept giving me a canned pitch) I finally sent all the email addresses to butterflyhelp@hotmail.com(the guy's English was so terrible I had to ask him several times what he was saying...erggggggg. Try having a English as a second language person say Butterfly!!

"I'VE FOUND A BARGAIN!" OR HAVE YOU???

It's try that affordability is at record levels today but many buyers need help putting price into perspective.

Buyers, especially first time buyers, think they can get a really really nice home for $60,000 but the average home in the Queen Creek, Arizona area (where there is an abundance of bank owned homes for sale) is running around $105,000. The closer you get to the center of the Phoenix valley then the average sales price is $150,000.  Buyers perceive that there are really great deals which is true.  But a lot of homes are stripped of all of their fixtures.  While a home maybe listed for $75,000, buyers are going to need $20,000 to $30,000 in cash to replace the plumbing and restore the kitchen and bathrooms.  The prudent buyer will look at some of the really low-priced homes first and decide if they want to do all that work.  Know what your costs will be up front by making a list of all needed repairs before making an offer....no Surprises!!!  You might even decide to spend a little more and not have to do the home repairs.

FLIP THIS HOUSE? MAYBE NOT?

FNMA, FHMLC, and the banks such as Wells, Chase, etc. continue to warn lenders to apply extra scrutiny on transactions where the seller has owned the home less than 90 days.  It is possible that they may soon adopt a 90 day rule similar to FHA's rules, but in the mean time, Bell Mortgage in Phoenix Arizona is continuing to process these transactions on a case by case basis.  They still have two investors who will accept these loans, and there are currently two mortgage insurance companies who will insure them up to 90% LTV, provided the borrowers have strong files with solid home appraisals.

 

Here are some areas of concern:

 

1)  The seller must have clear title to the property when they sign the purchase contract.  All liens must be paid off.  Short sale middlemen do not have clear title. 

 

2)  The title company must supply the lender with a 24 month chain of title.  We may need to obtain copies of the Trustee Deed in order to determine who is actually on title.

 

3)  Multiple ownership changes in a short period of time (other than between financial institutions and their agents) can be a cause of concern.

 

4)  Large changes in value with little or no improvement to the property may trigger additional scrutiny of the loan file.

 

5)  Sales that are not arms length (sale to a relative) may cause the transaction to be denied.

 

Courtesy of Jay Starks, Bell Mortgage, Phoenix, Arizona

AZ HOME BUYER -REO's MAKING AN OFFER PART 5

Making an Offer

Have your agent contact the the listing agent and ask the following before submitting a purchase offer:

• Are there any inspection reports?
• Has the bank agreed to make any repairs?  Will they offer a seller's concession for the buyer's loan costs?
• Is there a special "as is" form?
• How long does it take the bank to accept an offer? Are there any other offers?  If so, how many?

Offers are usually FAXED or emailed to the Bank's agent.  There is no formal presentation.  Keep in mind---nothing happens evenings and weekends (banks are closed).  It's a good idea to expect a response time of 4-5  business days to your offer. Since there is no face-to-face presentation to the bank you should provide the listing agent with a Loan Status Report (LSR) plus proof of funds. Make your offer straight forward and easy to accept.
Remember that REO's are selling very close to full list price and often thousands over the asking price---depending on the location of the property and multiple bidders.  REO's are not always the deals presented on late night television.

SEARCH FOR A BANK-OWNED (REO PROPERTY) NOW

AZ BUYER -- "AS IS" REO PROPERTY CONDITION PART IV

Property Condition

Banks always want to sell a property in "AS IS" condition. Most will provide a pest inspection but not unless you include it in your offer and insist upon it. They will allow you to all the inspections you want (at your expense) but generally do not agree to do any repairs unless required by the buyer's lender.
Your offer should include an inspection contingency period that allows you to terminate the sale if the inspections reveal unforeseen damages that the bank will not correct.
Even though you've agreed to “AS IS" always give the bank another chance to make repairs or give you a credit after you’ve completed your inspections.  Occasionally banks will re-negotiate to save the transaction instead of putting the property back on the market---just don’t count on it.
Most banks will not provide financing on their REOs but they may give a seller concession for the buyer's loan costs.  Many banks will also include a One-Year Home Warranty on the property but you have to ask for it in your purchase offer.

AZ BUYER--HOW BANKS SELL REO'S PART III

How Banks Sell REO's

Each bank/lender works a little differently but they all want to get the best price possible and have no interest in giving away the property. If the bank is very large they will have an entire department set up to manage their REO inventory.  After you make an offer to purchase, banks usually present a "counter-offer" and/or ask for your "highest & best" offer especially when there are several bidders on a property.   The Bank's counter may be at a higher price than you expect (especially the first week a REO is listed for sale) but they have to demonstrate to investors, shareholders and auditors that they attempted to get the highest price possible. You should plan to counter the counter-offer but when multiple offers exist you may not get the opportunity to make an additional counter offer.
Additionally, your offer will have to be reviewed and approved by several individuals and/or mortgage insurance companies.  Although an offer is accepted the bank may insert verbiage like “contingent upon corporate approval within 5 days" plus include there own "AS IS" addendum.

AZ Buyer---Bank Owns the Real Estate...Now What? Part II

REO Properties For Sale

The Bank now owns the property and the real estate loan no longer exists. The Bank will handle the eviction (if necessary) and may do some repairs. They will also negotiate with the IRS for removal of any tax liens which can take up to 6 months to achieve. If you buy a REO property, you will receive a Special Warranty Deed, Title insurance and the opportunity to inspect the property.
A bank owned property might not be a great bargain. Do your homework before making an offer. Compare the price that you will pay (if successful) to other home sales in the surrounding neighborhood.  Repair costs including time to complete them should also be considered plus factor in potential unknown issues. Avoid becoming involved in a ‘bidding war’ and paying over market value---very common in today's fast moving market.

What is a Foreclosure & REO (Real Estate Owned)? Part 1

A Foreclosure sale begins with a minimum bid that includes the loan balance, all accrued interest plus legal fees and any costs associated with the foreclosure process. In order to bid at a foreclosure auction, you must have a $10,000 cashier's check in your hand and the full amount of your bid is due within 24 hours after the sale has ended. As the successful bidder, you obtain the property in "as is" condition and that can include a tenant still occupying the property.  Recent legislation can prevent you from having the tenant removed and you may have to honor their lease with the previous owner so do your homework on this one before bidding.
In today's real estate arena the amount owed to the bank is almost always more than the value of the home resulting in very few successful foreclosure auction sales. Hence, the property "reverts" back to the bank and becomes an "REO" or "real estate owned" property. 

NEW Community-Owned or Privately Maintained Streets FNMA Requirements

In our ever-tightening environment appraisers are doing their research more carefully and lenders are finding that many streets thought to be publicly maintained are actually private roads.  This triggers an underwriting requirement to provide the recorded road maintenance agreement---which often does not exist.

If the property is not situated on a publicly dedicated and maintained street, then it must be situated on a street that is community owned and maintained or privately owned and maintained. There must be adequate vehicular access and there must be an adequate and legally enforceable agreement for vehicular access and maintenance.  

 

Community-Owned or Privately Maintained Streets

If the property is located on a community-owned or privately-owned and maintained street, an adequate, legally enforceable agreement or covenant for maintenance of the street is required. The agreement or covenant should include the following provisions and be recorded in the land records of the appropriate jurisdiction:

•	responsibility for payment of repairs, including each party’s representative share,

•	default remedies in the event a party to the agreement or covenant fails to comply with his or her obligations, and

•	The effective term of the agreement or covenant, which in most cases should be perpetual and binding on any future owners.

Note: If the property is located within a state that has statutory provisions that define the responsibilities of property owners for the maintenance and repair of a private street, no separate agreement or covenant is required.

If the property is not located in a state that imposes statutory requirements for maintenance, and either there is no agreement or covenant for maintenance of the street, or an agreement or covenant exists but does not meet the requirements listed above, the lender must indemnify Fannie Mae for any losses or expenses it may incur due to the physical condition of the street or in order to establish and/or retain access thereto.

HOUSING AFFORDABILITY CONTINUES TO CLIMB

Price declines and low interest rates continue to motivate buyers to enter the most affordable housing market in 28 years.  But, at the same time, only 1 in 10 of today's homeowners say they have delayed selling due to those same market conditions.  In the past year, the National Association of Realtor's Housing Affordability Index has increased 29% overall and 19% for first-time home buyers---the highest levels during the Index's 28 year history.

The survey also found that most Americans aren't aware of how affordable homes are becoming in today's fast-changing housing market.  More than 3/4's of consumers think a median-income family can afford less than half of the homes for sale in their area.  In reality, however, a family earning a median income of $53,182 can afford to buy nearly 75% of the current homes for sale.  For 14.6 percent of first-time home buyers, the government's $8,000 tax credit provides the impetus to shop for a home this year.

Courtesy of Sherri Buttler, Sun American Mortgage Company   sherri.buttler@SunAmerican.com 

HIDDEN HAZARDS IN YOUR HOME

The Most Painful Burn is the One you Could Have Prevented! 


Among the hidden hazards in your home, there are two especially harmful to children:  flammable liquids like gasoline and paint thinner.  The other is ordinary household tap water that's too hot for a child's skin.  Protecting your loved ones from flammable liquids and extremely hot water should come down to common sense.  However, with so many accidents, injuries and deaths every year it's easy to see that common sense is sometimes overlooked. 

As parents & grandparents, we become preoccupied or distracted in going about our daily lives and that's where the problems lie.  All it takes is a split second to change the course of your life and/or the life of a much-loved child.


Gasoline is a Motor fuel - that is the only thing gasoline is for.  It is not a solvent, not a cleaning fluid and should never be used that way.   Dangerous flammable vapors are released in your home or garage every time there is a spill or when the gasoline or other flammable liquid is not properly sealed in its storage container.  Silent, invisible vapors can travel; and, if these vapors reach a source of ignition, like a faulty electric outlet, the spark from a running motor or the pilot light of home appliance (hot water heater is a biggie), the vapors can ignite....and blow you clean out of the house.

Are These Products Around Your Home?  
GASOLINE, propane, kerosene, lighting liquids, cleaning liquids, oil-based paints, fertilizers, mineral spirits, nail polish remover, furniture polish, floor polish, disinfectants, pesticides, weed killers, turpentine, hair spray, adhesives and/or glues.