Gender and Home-Buying Decisions

When it comes to making home-buying decisions, men and women often have different priorities.  A National real estate company's survey finds that most women are able to select a home much more
quickly than men.  Almost 70% of women need only one visit to a new home to decide that it is right for them, compared with 62% of men.  About 1/3 of men (32%) need two or more visits.  More than half of women (55%) believe it is more important to live closer to their extended family than to their job, compared with only 37% of men.  Women are also more likely than men (65% compared with 51%) to lose interest in the home of their dreams if there are concerns about the home's security.

Utilities - To Shut Off or Not to Shut Off

Almost every landlord has wanted to shut off a tenant's utilities for one reason or another.  Unlawfully shutting off utilities can result in severe consequences to the landlord except for a few unusual circumstances.

Normally utilities cannot be shut off and Arizona State Statute allows the tenant to sue for damages and/or terminate their rental agreement.

Here is the statute that protects the tenant:

A.R.S. 33-1374  Recovery of possession limited

A landlord may not recover or take possession of the dwelling unit by action or otherwise, including willful diminution of services to the tenant by interrupting or causing the interruption of electric, gas, water or other essential service to the tenant, except in the case of abandonment, surrender or as permitted in this Chapter.

Buy a Fixer Upper with A FHA 203K Loan

The FHA 203K loan is a little known tool that many real estate and loan professionals have been using for many, many years.  A FHA 203K is very similar to the traditional FHA 203B loan...the only real difference is that with the FHA203K the home buyer is adding money upfront to their loan amount to finance any repair/improvement costs.  The traditional FHA203B loan requires that certain repairs to be done before the loan is made and the FHA203K loan allows the home buyer to purchase their fixer-upper and complete the repairs/improvements after the transaction closes. The other traditional FHA qualifications...appraisal guidelines, seasoning rules...still apply.  However, with the FHA203K loan the home buyer can fix up his/her home and not have to worry about the additional out-of-pocket expenses for the repairs/improvements.  A Fantastic Way to buy a Fixer-Upper!  Contact me on my blog site if you would like more info or check with your lender as there are two types of FHA203K loan programs.

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.

"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.

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.