Phoenix AZ Short Sales
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Serving the entire Phoenix Metro Area.
Phoenix short sales, Scottsdale short sales, Paradise Valley short sales, Cave Creek short sales, Carefree short sales, Sun City short sales, Peoria short sales, Glendale short sales, Surprise short sales, Buckeye short sales, Avondale short sales, Tempe short sales, Chandler short sales, Mesa short sales, West Valley short sales, Westgate short sales, El Mirage short sales.
U.S. Foreclosure Activity Hits 40-Month Low After Jump in March REOs Hit Record High in Nevada, Defaults Spike in Massachusetts and New Jersey
IRVINE, Calif. – May 12, 2011 — RealtyTrac® (realtytrac.com), the leading online marketplace for foreclosure properties, today released its U.S. Foreclosure Market Report™ for April 2011, which shows foreclosure filings — default notices, scheduled auctions and bank repossessions — were reported on 219,258 U.S. properties in April, a 9 percent decrease from March and a 34 percent decrease from April 2010. The report also shows one in every 593 U.S. housing units received a foreclosure filing during April 2011.
“Foreclosure activity decreased on an annual basis for the seventh straight month in April, bringing foreclosure activity to a 40-month low,” said James J. Saccacio, chief executive officer of RealtyTrac. “This slowdown continues to be largely the result of massive delays in processing foreclosures rather than the result of a housing recovery that is lifting people out of foreclosure.
“The first delay occurs between delinquency and foreclosure, when lenders and services are no longer automatically pushing loans that are more than 90 days delinquent into foreclosure but are waiting longer to allow for loan modifications, short sales and possibly other disposition alternatives,” Saccacio continued. “Data from the Mortgage Bankers Association shows that about 3.7 million properties are in this seriously delinquent stage. The second delay occurs after foreclosure has started, when lenders are taking much longer than they were just a few years ago to complete the foreclosure process.”
Foreclosure timelines lengthening
Nationwide, foreclosures completed (REOs) in the first quarter of 2011 took an average of 400 days from the initial default notice to the REO, up from 340 days in the first quarter of 2010 and more than double the average 151 days it took to foreclose in the first quarter of 2007.
The foreclosure process took much longer in some states. The average timeframe from initial default notice to REO in New Jersey and New York was more than 900 days in the first quarter of 2011, more than three times the average timeline in the first quarter of 2007 for both states.
The average foreclosure process in Florida took 619 days for foreclosures completed in the first quarter, up from 470 days in the first quarter of 2010 and nearly four times the average of 169 days it took in the first quarter of 2007.
The average foreclosure process in California took 330 days for foreclosures completed in the first quarter, up from 262 days in the first quarter of 2010 and more than double the average of 134 days in took in the first quarter of 2007.
Foreclosure Activity by Type Default notices (NOD, LIS) were filed for the first time on a total of 63,422 U.S. properties in April, a 14 percent decrease from the previous month and a 39 percent decrease from April 2010. After spiking 16 percent in March, default notices in April dropped back down close to the 48-month low hit in February.
Scheduled foreclosure auctions (NTS, NFS) hit a 31-month low in April, with a total of 86,304 U.S. properties scheduled for an auction for the first time during the month — down 7 percent from March and down 37 percent from April 2010.
Lenders foreclosed on 69,532 U.S. properties in April, down 5 percent from March and down 25 percent from April 2010, but bank repossessions (REOs) were still above a 22-month low hit in February 2011.
States with a judicial foreclosure process registered a 3 percent decrease in overall foreclosure activity from March and a 47 percent decrease in overall foreclosure activity from April 2010. States with a non-judicial foreclosure process posted an 11 percent month-over-month decrease and 26 percent year-over-year decrease in overall foreclosure activity.
Nevada, Arizona, California post top state foreclosure rates Nevada posted the nation’s highest state foreclosure rate for the 52nd straight month in April, with one in every 97 housing units receiving a foreclosure filing during the month. Overall foreclosure activity in Nevada decreased 9 percent from the previous month and was down 27 percent from April 2010. Bank repossessions increased 23 percent from March and were up 12 percent from April 2010 to 4,606 — an all-time monthly high since RealtyTrac began issuing the report for Nevada in April 2005.
Arizona REOs decreased 3 percent from March but were still up 22 percent from April 2010, helping the state maintain the nation’s second highest foreclosure rate for the fifth consecutive month. One in every 205 Arizona housing units received a foreclosure filing during the month, and overall foreclosure activity decreased 15 percent from March and was down 17 percent from April 2010 despite the year-over-year jump in REOs.
Overall, foreclosure activity in California was down monthly and annually in April, but a 22 percent month-over-month jump in REOs helped keep the state’s foreclosure rate at the third highest among all states for the sixth consecutive month. One in every 240 California properties received a foreclosure filing in April.
One in every 322 Utah housing units received a foreclosure filing in April, the fourth highest state foreclosure rate, and one in every 325 Idaho housing units received a foreclosure filing in April, the fifth highest state foreclosure rate.
Other states with foreclosure rates ranking among the top 10 in April were Michigan, Florida, Georgia, Colorado and Oregon.
10 states account for 70 percent of total foreclosure activity
Ten states accounted for 70 percent of U.S. foreclosure activity in April, led by California with 55,869 properties receiving a foreclosure filing during the month.
A total of 19,649 Florida properties received a foreclosure filing in April, the second highest state total despite a 59 percent decrease from April 2010. Florida overall foreclosure activity in April was still up marginally from a 46-month low set in February, and default notices and scheduled auctions increased from March.
Arizona tallied the third highest state total, with 13,419 properties receiving foreclosure filings in April, followed by Michigan, with 12,996 properties receiving foreclosure filings, and Nevada, with 11,761 properties receiving foreclosure filings.
Other states with foreclosure activity totals among the nation’s 10 highest in April were Illinois (10,055), Texas (8,793), Georgia (8,479), Ohio (7,962) and Colorado (4,379).
Top metro foreclosure rates
Las Vegas continued to post the nation’s highest foreclosure rate among metropolitan areas with a population of 200,000 or more, with one in every 82 housing units receiving a foreclosure filing in April — more than seven times the national average.
Another Nevada metropolitan area with a foreclosure rate in the top 10 was Reno-Sparks at No. 9, with one in every 183 housing units receiving a foreclosure filing in April.
Seven of the 10 highest metro foreclosure rates were in California cities, led by Modesto at No. 2, with one in every 136 housing units receiving a foreclosure filing in April. Other California cities in the top 10 were Stockton at No. 3 (one in every 138 housing units), Riverside-San Bernardino-Ontario at No. 4 (one in every 145 housing units), Bakersfield at No. 5 (one in every 151 housing units), Sacramento-Arden-Arcade-Roseville at No. 6 (one in every 166 housing units), Vallejo-Fairfield at No. 8 (one in every 175 housing units), and Merced at No. 10 (one in every 195 housing units).
The Phoenix-Mesa-Scottsdale metro area posted the nation’s seventh highest metro foreclosure rate in April, with one in every 168 housing units receiving a foreclosure filing during the month.
Report methodology
The RealtyTrac U.S. Foreclosure Market Report provides a count of the total number of properties with at least one foreclosure filing entered into the RealtyTrac database during the month — broken out by type of filing. Some foreclosure filings entered into the database during the month may have been recorded in previous months. Data is collected from more than 2,200 counties nationwide, and those counties account for more than 90 percent of the U.S. population. RealtyTrac’s report incorporates documents filed in all three phases of foreclosure: Default — Notice of Default (NOD) and Lis Pendens (LIS); Auction — Notice of Trustee Sale and Notice of Foreclosure Sale (NTS and NFS); and Real Estate Owned, or REO properties (that have been foreclosed on and repurchased by a bank). The report does not count a property again if it receives the same type of foreclosure filing multiple times within the estimated foreclosure timeframe for the state where the property is located.
Filings slide up 15 percent from Q4 2010, drop 17 percent from a year ago
State’s foreclosure rate second highest in the nation
Foreclosure filings — default notices, scheduled auctions and bank repossessions — were reported on 46,047 Arizona properties during the first quarter of 2011, up 15 percent from the fourth quarter of 2010 but 17 percent below the level reported for the same quarter last year, according to the latest RealtyTrac® U.S. Foreclosure Market Report. The state posted the second highest foreclosure rate in the nation, with one in every 60 Arizona housing units receiving a foreclosure filing during the quarter.
Foreclosure filings were reported on 15,705 Arizona properties in March, a 1 percent increase from February but down nearly 17 percent from March 2010. One in every 175 Arizona housing units received a foreclosure filing in March, the second highest state foreclosure rate in the nation for the month.
Following California with 168,543 properties with foreclosure filings, and Florida with 58,322 properties with foreclosure filings, the Grand Canyon State reported the third highest foreclosure total in the nation during Q1 2011. Georgia narrowly beat out Michigan for fourth highest, reporting 37,509 properties with foreclosure filings compared to Michigan’s 37,506 properties with foreclosure filings for the period.
The rest of the nation’s top 10 state foreclosure totals for the first quarter of the year included Texas (34,646), Illinois (33,092), Nevada (32,066), Ohio (24,697) and Colorado (13,847). The top five states accounted for 51 percent of the nation’s total quarterly foreclosure activity.
Pinal County takes top foreclosure rate honors in the first quarter
One in every 33 housing units in Pinal County received a foreclosure filing during the first quarter of 2011 — 5.9 times the national average and 1.8 times the state average — the highest county foreclosure rate in the state for the first quarter. Maricopa County reported the second highest rate with one in every 50 housing units receiving a foreclosure filing — 3.8 times the national average and 1.2 times the state average. One in every 73 housing units in Yavapai County received a foreclosure filing, the third highest foreclosure rate in the state for the quarter — 2.6 times the national average.
Maricopa County led the state in foreclosure activity for first quarter
Maricopa County led all counties in total foreclosure activity, reporting 31,885 properties with foreclosure filings during the quarter. Pima County was second highest, reporting 4,606 properties with foreclosure filings. Third highest total was tallied in Pinal County, where 4,537 properties with foreclosure filings were reported. Reporting 1,456 properties with foreclosure filings, Yavapai County registered the fourth highest total in the state. Fifth highest was Mohave County, where 1,310 properties with foreclosure filings were reported for the quarter.
State a large contributor to nation’s foreclosure total in the first quarter
Arizona accounted for 7 percent of the 681,153 properties with foreclosure filings reported nationwide for the first quarter of 2011. Total U.S. activity decreased almost 15 percent from the fourth quarter of 2010, and was down 27 percent from the level reported for the same quarter in 2010. One in every 191 U.S. housing units received a foreclosure filing during the quarter.
“The nation’s housing market continued to languish in the first quarter, even as foreclosure activity fell to a three-year low,” said James J. Saccacio, chief executive officer of RealtyTrac. “Weak demand, declining home prices and the lack of credit availability are weighing heavily on the market, which is still facing the dual threat of a looming shadow inventory of distressed properties and the probability that foreclosure activity will begin to increase again as lenders and servicers gradually work their way through the backlog of thousands of foreclosures that have been delayed due to improperly processed paperwork.”
Report methodology
The RealtyTrac U.S. Foreclosure Market Report provides a count of the total number of properties with at least one foreclosure filing entered into the RealtyTrac database during the month — broken out by type of filing by state, county and metropolitan statistical area. Some foreclosure filings entered into the database during the month may have been recorded in previous months. Data is collected from more than 2,200 counties nationwide, and those counties account for more than 90 percent of the U.S. population. RealtyTrac’s report incorporates documents filed in all three phases of foreclosure: Default — Notice of Default (NOD) and Lis Pendens (LIS); Auction — Notice of Trustee Sale and Notice of Foreclosure Sale (NTS and NFS); and Real Estate Owned, or REO properties (that have been foreclosed on and repurchased by a bank). If more than one foreclosure document is received for a property during the month, only the most recent filing is counted in the report. The report also checks if the same type of document was filed against a property in a previous month. If so, and if that previous filing occurred within the estimated foreclosure timeframe for the state the property is in, the report does not count the property in the current month.
For current news and information regarding foreclosure-related issues and trends, check out our blog at www.ForeclosurePulse.com.
2012 Budget Could Limit Mortgage Interest Deduction
By RealtyTrac Staff
While President Obama’s proposed 2012 budget plan doesn’t specifically target the mortgage interest deduction by name, many believe it could be collateral damage from the 30 percent reduction in itemized deductions on income taxes — which the budget said is necessary to pay for a “three-year patch to prevent an increase in taxes on middle-class families through the Alternative Minimum Tax (AMT).Complete Story
By Joel Cone, Staff Writer Here’s our list of the best places to buy and invest in foreclosures in 2011 and beyond, based on an analysis of 10 key real estate metrics relating. We started with the nation’s 100 largest metropolitan statistical areas (MSAs) based on population. We then filtered out the top 25 metro areas in each of 10 categories relating to foreclosure activity, unemployment rates and sales prices and tabulated which metro areas showed up most frequently in those top 25 lists. California, New York and Ohio each had two cities in our Top 10 list, and the remaining four cities were in Maine, Wisconsin, Tennessee and North Carolina. Complete Story
Foreclosure Activity Decreases 15 Percent in Q1 2011
Foreclosure filings were reported on 681,153 U.S. properties in the first quarter, a 15 percent decrease from the previous quarter and down 27 percent from the first quarter of 2010, according to RealtyTrac. “Weak demand, declining home prices and the lack of credit availability are weighing heavily on the market, which is still facing the dual threat of a looming shadow inventory of distressed properties and the probability that foreclosure activity will begin to increase again as lenders and servicers gradually work their way through the backlog of thousands of foreclosures,” said James J. Saccacio, chief executive officer of RealtyTrac. Complete Story
As a Phoenix homeowner considering a short sale it is important you understand the most common mistakes agents and homeowners make in this process. The CDPE agent that provided you this information has completed extensive training in the short sale process and in assisting homeowners who owe more on their properties than what they are worth and need solutions.
1. Property is Priced Incorrectly PITFALL: This is the most common mistake made with all properties and the most common reason a listing expires and a property doesn’t sell.
SOLUTION: The agent that provided you with this report will go through a detailed listing price strategy with you that will allow you to see exactly where your property should be priced based on it current condition, sales in your area and most importantly how much time you have left to sell.
2. The Short Sale Proposal is Incomplete PITFALL: This is one of the most common reasons why a short sale does not get approved. Most agents do not understand the short sale process and what your lender will be looking for.
SOLUTION: The CDPE that gave you this report understands this process in detail and will work with you to present a complete and cohesive proposal to your lender.
3. Inadequate Follow Up and Communication PITFALL: If your agent does not follow up with everyone involved as your short sale goes through each threshold or step in this process you may not know that your file has been delayed and you again may run out of time.
SOLUTION: The right agent knows exactly how to follow up to ensure that your lenders issues are addressed in a timely manner and will make certain you do not have unnecessary delays.
4. Not Enough Time PITFALL: It is critical that your agent understand the foreclosure laws in your area. They should be able to show you an estimated timeline. They should also know how to communicate with your lender and what to provide that in some cases can stall your foreclosure for weeks or months in order to let you negotiate a sale.
SOLUTION: Make sure you provide your agent accurate information as to exactly how many payments you have missed and any correspondence you have received from your lender. This will allow your agent to understand your situation and work to improve it.
5. Your Deal is Not Submitted Properly
If you do not follow the directions you receive for submission then you are expecting an over-worked, under-staffed department to go out of their way to handle your file. There is very little likelihood of this happening. If you are instructed to fax your file, fax it and send a backup copy in the mail. If you are instructed to mail two copies, mail two copies. Once you have a contract, have gathered your information and completed your proposal you do not want your deal to fall apart because no one sees it.
6. The Buyer’s Offer is Too Low PITFALL: Many agents will encourage you to submit any offer they get. The reality is that short sale is not the same as a fire sale! In order to have a legitimate chance at getting your deal approved you must have an offer that is more attractive to the lender than a foreclosure.
SOLUTION: The right agent will work with you to properly negotiate any offer that you receive to get ‘highest and best’ from each buyer so you are presenting the best solution possible to your lender.
7. The Buyer’s Contract is Not Strong Enough PITFALL: In today’s economic climate, just because a buyer is willing to make an offer on a property does not mean that they are truly qualified to purchase. The reality is that a buyer needs to be preapproved for financing, closing funds need to be verified and their ability to buy needs to be confirmed.
SOLUTION: The agent that gave you this report is familiar with the details of exactly what must be verified in order to qualify a buyer to submit an offer on your property that has a chance at closing. Don’t risk this process with an uneducated agent who does not have these answers.
In summary
While these pitfalls may seem troublesome – the right agent can help you navigate your way to a successful closing. Don’t risk your financial future and the potential sale of your home with an agent who does not have all the solutions, call us today.
Are you looking to buy a new home in the Phoenix metro area? Are you thinking that now’s a great time to find bargains? Before you make an offer, it pays to know a little about the seller’s situation.
Speak To Samone, Phoenix Professional Short Sale Certified Realtor NOW….Call: 602-390-1462
Serving the entire Phoenix Metro Area Short Sale Market.
Phoenix, Scottsdale, Paradise Valley, Cave Creek, Carefree, Sun City, Peoria, Glendale, Surprise, Buckeye, Avondale, Tempe, Chandler, Mesa, West Valley, Westgate.
If a home is being sold for below what the current seller owes on the property—and the seller does not have other funds to make up the difference at closing—the sale is considered a short sale. Many more Phoenix metro area home owners are finding themselves in this situation due to a number of factors, including job losses, aggressive borrowing against their home in the days of easy credit, and declining home values in a slower real estate market.
A Phoenix short sale is different from a foreclosure, which is when the seller’s lender has taken title of the home and is selling it directly. Homeowners often try to accomplish a short sale in order to avoid foreclosure. But a short sale holds many potential pitfalls for buyers. Know the risks before you pursue a short-sale purchase.
You’re a good candidate for a short-sale purchase if:
* You’re very patient. Even after you come to agreement with the seller to buy a short-sale property, the seller’s lender (or lenders, if there is more than one mortgage) has to approve the sale before you can close. When there is only one mortgage, short-sale experts say lender approval typically takes about two months. If there is more than one mortgage with different lenders, it can take four months or longer for the lenders to approve the sale.
* Your financing is in order. Lenders like cash offers. But even if you can’t pay all cash for a short-sale property, it’s important to show you are well qualified and your financing is set. If you’re preapproved, have a large down payment, and can close at any time, your offer will be viewed more favorably than that of a buyer whose financing is less secure.
* You don’t have any contingencies. If you have a home to sell before you can close on the purchase of the short-sale property—or you need to be in your new home by a certain time—a short sale may not be for you. Lenders like no-contingency offers and flexible closing terms.
If you’re serious about purchasing a short-sale property, it’s important for you to have expert assistance. Here are some people you want to work with:
* Experienced real estate attorney. Only about two out of five short sales are approved by lenders. But a good real estate agent who’s knowledgeable about the short-sale process will increase your chances getting an approved contract. Also, if you want any provisions or very specialized language written into the purchase contract, a real estate attorney is essential throughout the negotiation.
* A qualified Phoenix AZ short sale real estate professional.* You may have a close friend or relative in real estate, but if that person doesn’t know anything about short sales, working with him or her may hurt your chances of a successful closing. Interview a few practitioners and ask them how many buyers they’ve represented in a short sale and, of those, how many have successfully closed. A qualified real estate professional will be able to show you short-sale homes, help negotiate the purchase when you find the property you want to buy, and smooth communications with the lender. (All MLSs permit, and some now require, special notations to indicate that a listing is a short sale. There also are certain phrases you can watch for, such as “lender approval required.”)
* Title officer. It’s a good idea to have a title officer do an initial title search on a short-sale property to see all the liens attached to the property. If there are multiple lien holders (e.g., second or third mortgage or lines of credit, real estate tax lien, mechanic’s lien, homeowners association lien, etc.), it’s much tougher to get that short sale contract to the closing table. Any of the lien holders could put a kink in the process even after you’ve waited for months for lender approval. If you don’t know a title officer, your real estate attorney or real estate professional should be able to recommend a few.
Some of the other risks faced by buyers of Phoenix AZ short-sale properties include:
* Potential for rejection. Lenders want to minimize their losses as much as possible. If you make an offer tremendously lower than the fair market value of the home, chances are that your offer will be rejected and you’ll have wasted months. Or the lender could make a counteroffer, which will lengthen the process.
* Bad terms. Even when a lender approves a short sale, it could require that the sellers sign a promissory note to repay the deficient amount of the loan, which may not be acceptable to some financially desperate sellers. In that case, the sellers may refuse to go through with the short sale. Lenders also can change any of the terms of the contract that you’ve already negotiated, which may not be agreeable to you.
* No repairs or repair credits. You will most likely be asked to take the property “as is.” Lenders are already taking a loss on the property and may not agree to requests for repair credits.
The risks of a Phoenix metro short sale are considerable. But if you have the time, patience, and iron will to see it through, a short sale can be a win-win for you and the sellers.
* Not all real estate practitioners are REALTORS®. A REALTOR® is a member of the NATIONAL ASSOCIATION OF REALTORS® and is bound by NAR’s strict code of ethics.
Note: This article provides general information only. Information is not provided as advice for a specific matter. Laws vary from state to state. For advice on a specific matter, consult your attorney or CPA. Source Realtor.org
Stop Foreclosure!Don’t Walk Away From Your Home. I may have A Solution For You!
Things You’ll Need To Begin Selling Your Phoenix Home as A Short Sale:
* Your financial data (income and assets)
* A qualified representative (real estate broker, lawyer, or advisor)
* A market analysis of similar home sales and those currently for sale
* Recent bank statements
* A Phoenix AZ Certified Short Sale Home Realtor
Step 1
Contact Samone, a Realtor specially trained and licensed short sale home expert. She help you with forms, speaking to mortgage lenders, gathering the needed documentation, marketing the home and more.
Step 2
Contact your mortgage lender. Don’t just call or email customer service or the “loan work out” department. You need to speak with the Manager of the problem loan department or another individual who has the authority to approve a short sale request. While mortgage lenders can be sympathetic to these problems, they are never anxious to allow a short sale. If you’re uncomfortable in this role, let your lawyer or advisor negotiate with your lender.
Step 3
Write a letter “authorizing” your mortgage lender to disclose your loan information to real estate agents, lawyers, title companies, or other interested parties. Your loan information is subject to privacy laws so your lender needs your written authorization to release this data to anyone. At a minimum, this letter should include the property address, your name, your loan number (or other identifying data), and, if appropriate, a list of the parties for whom you wish this information to be given.
Step 4
Compile some preliminary financial information (sometimes called a “Net Sheet”) about your prospective short sale. Include the expected sales price and all costs that might be attached to the sale, including your current unpaid loan balance, payments due, real estate commissions, and loan or other fees expected to be payable. If you’re unsure how to create this document, your real estate agent, lawyer or advisor should be able to produce it for you.
Step 5
Write a serious “hardship letter”, detailing all the surrounding events that have occurred to cause you to arrive in this financial situation. Explain your economic problems honestly and directly ask your mortgage lender to accept a less than full balance payment. While the more dire your circumstances, the better the chance your request will be granted, you should resist the temptation to over dramatize your situation.
Step 6
Write up a statement of your current income and all of your other assets for your mortgage lender to evaluate. List your other assets, including bank accounts, stocks or other investments, additional real estate, and anything else of value. This information should display that you have neither the income nor the assets to repay your mortgage loan in full. You will often be asked to submit the last 3 to 6 months’ bank statements, also. Your mortgage lender will examine these to learn if there are recent large cash withdrawals or high numbers of checks clearing your accounts. Lenders want some assurance that you haven’t been hiding or diverting funds that might go to them.
Step 7
Compile a current market analysis of real estate sales in your area to emphasize the wisdom of your request for a short sale. This document should show the selling prices of similar homes in your area for the past 3 to 6 months. You should also include some similar properties currently for sale in your area. During times of market value declines, short sales become more “popular” and this comparative analysis again reinforces the need for you to request this consideration. If you’re unsure how to create this analysis, your real estate agent can prepare this document for you.
Step 8
After you reach common ground with a potential buyer, deliver a copy of your proposed Purchase & Sale Agreement to your mortgage lender. They will want to examine the price, terms, and other conditions in the document. Don’t be surprised if your lender attempts to renegotiate (downward, of course) some features, like real estate commissions or other financial considerations you’ve made. Assuming your lender accepts the agreement, you can then proceed to bring your short sale to fruition.
Short Sale Tips & Warnings
* Don’t spend too much time “chatting” with lender personnel until you reach the right person. Typically, only management personnel have the authority to approve a short sale.
* Ensure that all the documents you’re required to submit to your mortgage lender support your request for a short sale.
* Be honest and open with your lender. If they believe your situation is not as described, they will probably deny your request for a short sale. They typically won’t tell you they have doubts about your lack of ability to repay in full. They will merely advise you they have denied your request.
* In Step 3, should your “bottom line” indicate that you (the seller) may receive cash proceeds, your lender will probably not approve your short sale request.
Free counseling and short sale real estate services to Phoenix, Maricopa home owners in financial Hardship. If you owe more than the value of your home, I will work with your lender to negotiate a lower payoff amount on your home loans in order to get your home to a price range where it will sell in this market. My short sales services are 100% free for home sellers!
By dealing with an agent who has earned the Certified Distressed Property Expert Designation (CDPE) designation, homeowners ensure that they are working with a real estate professional that is equipped to handle their specific needs.
If you are in financial hardship and must get your home sold, I would like to discuss your circumstances with you to see if you qualify for a short sale. Contact me today for a free, confidential, no obligation consultation!. Click here to for a FREE Short Sale Analysis
Are You Eligible?
Please use the self-assessment tools provided on Making Home Affordable to see if you are among the 7 to 9 million homeowners who may be able to benefit from Making Home Affordable
The Healthiest Housing Markets for 2009
Builder, in conjunction with Hanley Wood Market Intelligence, debuts its metric for determining markets with the best and least potential.
By: Boyce Thompson
With most economists and builders expecting a national market decline this year, this may not seem like the best time to be selecting the “healthiest” markets in the country. Virtually every market was down last year. But a close look at the numbers reveals that some markets have way outperformed others during the last four years and are likely to continue to do so this year.
When the housing market stages its official recovery, the markets listed on the following pages are likely to lead the parade. It may take a year or more for the weakest markets–where burgeoning foreclosure sales are still pounding new home values, making building and selling new homes an exercise in futility– to finally stage a turnaround. We’ll present that list next week.
The healthiest markets have many things in common. Most of them are great places to live, either close to the ocean, mountains, or major universities. Most of them didn’t have a huge run-up in prices during the boom and aren’t experiencing rampant deflation during the bust.
To compile these lists, we analyzed the top 75 housing markets in the country. We ranked them based on population trends and job growth, perennial drivers of housing demand. We also examined what’s happened with home prices; many of the healthiest markets have managed to hold the line on home values. And finally, we considered the rate building permits, which may be the single best ongoing indicator of builder confidence in a market. We combined all these metrics to produce a score for each market. Here are the top 15, in reverse order.
15. Myrtle Beach, S.C.
2008 total building permits: 3,211
Though permit activity dropped sharply last year, Myrtle Beach remains one of the hottest markets in the country, especially when you analyze the number of permits pulled per resident. Only 263,287 people live in the Myrtle Beach metro area, which until recently had been growing its population by nearly 5 percent a year. That means builders pulled one permit for every 82 residents. A steady influx of people, many of them retirees, are drawn by close proximity to the ocean and 117 golf courses at last count. That has helped keep home prices steady; they fell only 10 percent last year to a very affordable $174,800. Most of the home building is split between Brunswick and New Hanover counties. Jobs are dependent on the tourist industry, though, and the metro area was rocked last year when a $400 million rock-and-roll themed amusement part, Hard Rock Park, opened and then filed for bankruptcy. Myrtle Beach added jobs last year, but as of December employment was decreasing at a 4.2 percent rate compared to a year earlier.
14. Wilmington, N.C.
2008 total building permits: 3,551
Wilmington has the second highest ratio of permits pulled per resident, behind only Myrtle Beach. The population here, 352,919 by Census estimates, has been growing at a 4 percent annual rate for the last five years, well above the national average. Primary residents are drawn by a four-season climate, close proximity to Atlantic beaches, and affordable housing. Median home prices, at $198,700, are just about the national average. The area gave back 1,000 jobs last year, after gaining 19,000 the previous three years. Wilmington has had a 60 percent decline in permit activity since 2005, around the national average, but its track record for population growth helps it make this list.
13. Charlotte, N.C.
2008 total building permits: 12,231
People and businesses must love Charlotte, because they are moving there at a high rate. The metro area of 1.74 million has grown its residents by 4 percent annually over the last five years, one of the highest rates in the country. They are drawn by relatively affordable housing for the east coast—median home prices are only $210,900, and they’ve only “corrected” downward by only 4.2 percent in the last year. A strong fourth quarter helped Charlotte record 12,231 permits last year, only a 44 percent decline since 2005. Charlotte’s strength relative to other markets led the investment banking firm UBS to predict last year that it would be one of the first markets to recover from the housing downturn. Charlotte is still a single-family market, with 62 percent of the residential activity in stand-alone homes. The job market in this banking hub contracted last year, after growing 3 to 5 percent annually the previous three years.
12. Denver, Col.2008 total building permits: 8,800
Denver has been all over the home building news of late, with Beazer and Centex leaving town, then Village Homes of Colorado declaring bankruptcy. But the market hasn’t been hit as hard by the home building recession as other Western markets, in part because it didn’t experience rampant price appreciation during the boom. That’s partly because there’s lots of land available to develop in Denver. The median price of an existing home here was still an affordable $225,100 in the third quarter of last year, down only 11.4 percent in the last year (through 3Q 08). Denver enjoys one of the highest population growth rates in the country–2 percent annually for each of the last five years. Builders pulled 8,800 permits in Denver last year, down from 20,864 in 2005, a percentage decline that’s close to the national average. Denver is buoyed by a strong commercial real estate market.
11. Nashville, Tenn.2008 total building permits: 8,142
Nashville, the 20th largest home building market, operated under the radar of the national housing boom. It didn’t ramp up wildly during the boom years, and it’s not contracting viciously during the bust. Median home prices remain an affordable $152,100, propped up by a growing job base. Eighty percent of the residential construction is single-family. Some of the market’s resilience stems from above-average population growth of about 2.3 percent a year. Back in the day, 2005, Nashville accounted for 16,654 permits; it now runs at about half that level. But that’s a better performance than most major markets.
10. Washington DC2008 total building permits: 11,693
Washington D.C. showed signs last summer that it might be emerging from the downturn, then it turned south again. Even so, the area produces a ton of jobs—an estimated 35,000 in the last year—that fuel a vibrant housing market, the 11th largest in the country. Many of the jobs stem from contracts with the federal government. Washington D.C. remains a relatively unaffordable place to live, with a median home price of $332,700 in the third quarter of last year. But values have fallen only 24 percent in the last year in part because the population continues to grow—an average of 1 percent annually over the last five years. Home building patterns have changed dramatically in the nation’s capital with builders mothballing subdivisions well beyond the beltway and focusing on infill opportunities. The region remains one of the worst in the nation for commuters.
9. Fayetteville, Ark.2008 total building permits: 2,989
Fayetteville has made some important lists in recent years. Located in the foothills of the Ozarks and within an easy drive of Wal-Mart’s corporate headquarters, it has recently been named one of the best places to live (by Kiplinger) and to do business (by Inc.). Employment, which had been strongly positive since 2005, dropped somewhat in the fourth quarter of last year. Recent layoffs at Wal-Mart’s corporate office sent tremors through the market. But several Fortune 500 companies that sell products to Wal-Mart have established offices here, and they have helped Fayetteville achieve one of the lowest unemployment rates in the country, 4.1 percent in the fourth quarter. The University of Arkansas is also located in Fayetteville, and it has helped attract start-up businesses. Residents are drawn by an affordable housing stock; median prices average only $139,400, below the national average, and they’ve lost only 2.4 percent of their value in the last year. Builders pulled only 2,989 residential permits last year, down from 7, 449 in 2005.
8. Indianapolis, Ind.2008 total building permits: 7,004
Builders are still pulling permits at a relatively healthy rate in Indianapolis, despite a virtually flat job market. Unlike other major markets that have become multifamily-oriented, single family still accounts for two-thirds of home building activity. Ultra-affordable housing accounts for some of the activity—the median price of a home here is only $117,900, making it one of the most affordable markets in the country. As a result, home prices have declined only 4.5 percent in the last year. At the top of the market in 2005, builders in Indianapolis took down 15,619 permits, so activity is down 55 percent, slightly better than the national average. Unfortunately, the relative health of the market wasn’t enough to keep Davis Homes, one of the area’s largest private builders, from going out of business last year.
7. Seattle, Wash.2008 total building permits: 13,021
Seattle, a city of 3.4 million people, last year weighed in as the eighth largest home building market. Residential construction activity here, as measured by permits, is off only 50 percent since 2005, much better than most markets. Seattle has steadily transitioned during the last 10 years from an affordable to an upscale housing market, with the median price of an existing home reaching above $350,000. Even so, existing home prices fell only 11 percent in the last year. One of the secrets to Seattle’s success is that it has added lots of jobs in recent years; and held on to them last year. Some builders there have even stepped up their land buying in anticipation of a market recovery. As the city has become more urban, the share of single family to multifamily permits has reversed; multifamily now accounts for 58 percent of activity.
6. Raleigh, N.C.2008 total building permits: 11,386
Another state capital with multiple universities, Raleigh was still adding jobs at a 1.9 percent annual rate though the third quarter of last year. With a population of more than 1 million, it also has one of the highest rates of population growth of any top metro market in the country over the last five years: nearly 5 percent annually. Though the price of a median home here, $221,900, is above the national average, it is well below other cities in the mid-Atlantic and Northeast. The metro area has added roughly 68,000 jobs since 2005, and employment held steady last year. With a glut of national builders in the market, locals such as Dixon Kirby have experimented with different looks and styles to keep sales alive.
5. Dallas, Texas2008 total building permits: 26,145
In a year when permits declined 35 percent nationally, Dallas only experienced a 9 percent fall-off. With a population of 4.2 million, Dallas was the third largest home building market last year, as measured in permits pulled. Employers in Dallas, a popular place for corporate relocation and expansion, added 42,000 jobs last year, a growth rate of 2 percent. Existing home prices have held steady, falling a paltry 2.3 percent in the last year, Interestingly, the face of residential construction has changed dramatically in Dallas in recent years; 58 percent of the activity last year was in multifamily, compared to a five-year average of 23 percent. The relative stability of the market, though, wasn’t enough to prevent Wall Homes from filing for bankruptcy earlier this year. On the other hand, former Meritage co-CEO John Landon recently started a new Dallas-based home building company.
4. San Antonio, Texas2008 total building permits: 10,261
San Antonio is another Texas market that is still adding jobs, about 15,000 last year. A city of more than 2 million people now, its population is also growing, at a 2.8 percent annual clip through the third quarter of last year. Existing home prices are barely declining in San Antonio, down only 1.8 percent in the last year, leaving the median price of an existing single-family home at an affordable $154,400, 25 percent below the national average of $200,500, according to the National Association of Realtors. The upper end of the housing market was hurt recently when AT&T announced it would be moving its corporate headquarters to Dallas.
3. Fort Worth, Texas2008 Total Building Permits: 10,388
Fort Worth, always operating in the shadow of higher profile Dallas, nevertheless can currently claim to have a slightly healthier housing market, based on its employment growth, relatively strong permit activity, and inexpensive housing. Now the 14th largest home building market in the country, Ft. Worth’s builders pulled 10,388 permits last year, roughly two-thirds of them single-family. That may be half as many as 2005, but many other major markets showed much sharper drop-offs. The relative strength of the Fort Worth market in recent years stems from its ties to the oil and gas industries, which has fueled above-average job growth. The metro area added 17,300 jobs last year.
2. Austin, Texas2008 Total Building Permits: 14,250
Nine years ago, during the tech bust, some builders felt that Austin was too crowded and left. The bloom is back on Austin’s yellow rose now; it moved up the leader board to become the sixth largest home building market last year. Job creation explains the move. While other markets lost employment, Austin added 17,400 jobs last year, 2.31 percent growth rate. It helps that Austin is home to both a major university, The University of Texas, and the state capital. Existing homes cost a little bit more in Austin than other Texas markets, roughly $190,900, but that’s still below the national average. Also, Austin is one of the few metro areas in the country where median prices actually rose in 2008–1.4 percent through the first three quarters of the year. Amazingly, Austin now generates more home building activity than Chicago, which has six times more people.
1. Houston, Texas2008 Total Building Permits: 42,697 They like to do things big in Houston. Now the metro area, home to nearly 5.8 million people, can lay claim to being the largest home building market in the country, with 42,697 building permits. The market is still benefiting from an influx of population and jobs and rebuilding in the wake of Hurricane Ike. Employment rose 2.2 percent last year, representing the addition of an incredible 57,000 jobs. Home building activity in Houston has only fallen 31 percent since 2005. Also, existing home prices actually rose in Houston last year, 2.8 percent, to $160,200, still a very affordable level. Roughly one third of the home building action is in Harris County, followed by Houston proper and Fort Bend County. One of Houston’s largest builders, Royce Homes, shut down last year, and Kimball Hill, one of the biggest builders in Texas, closed its doors this year after it failed to find a buyer.
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President Barack Obama threw a $75 billion lifeline to millions of Americans on the brink of foreclosure Wednesday, declaring an urgent need for drastic action — not only to save their homes but to keep the housing crisis “from wreaking even greater havoc” on the broader national economy.
The lending plan, a full $25 billion bigger than the administration had been suggesting, aims to prevent as many as 9 million homeowners from being evicted and to stabilize housing markets that are at the center of the ever-worsening U.S. recession.
Government support pledged to mortgage giants Fannie Mae and Freddie Mac is being doubled as well, to $400 billion, as part of an effort to encourage them to refinance loans that are “under water” — those in which homes’ market values have sunk below the amount the owners still owe.
“All of us are paying a price for this home mortgage crisis, and all of us will pay an even steeper price if we allow this crisis to continue to deepen,” Obama said.
The new president, focusing closely on the economy, in his first month in office, rolled out the housing program one day after he was in Denver to sign his $787 billion emergency stimulus plan to revive the rest of the economy. And his administration is just now going over fresh requests for multiple billions in bailout cash from ailing automakers.
Wall Street has shown little confidence in the new steps, declining sharply on Tuesday before leveling off after Wednesday’s announcement. The Dow Jones industrials rose 3 points for the day.
Success of the foreclosure rescue is far from certain.
The administration is loosening refinancing restrictions for many borrowers and providing incentives for lenders in hopes that the two sides will work together to modify loans. But no one is required to participate. The biggest players in the mortgage industry temporarily had halted foreclosures in advance of Obama’s plan.
Complicating matters, investors in complex mortgage-linked securities, who make money based on interest payments, could still balk, especially those who hold second mortgages or home equity loans. Their approval would be needed to prevent many foreclosures.
“The obstacles have not gone away,” said Bert Ely, a banking industry consultant in Alexandria, Va.
Another cautionary note came from John Courson, chief executive of the Mortgage Bankers Association.
“It seems to offer little help to borrowers whose loan exceeds their property value by more than 5 percent,” he said, noting that that requirement would limit the plan’s success in some of the hardest-hit areas in California, Florida, Nevada and Arizona and parts of the East Coast.
Indeed, Obama himself said, “This plan will not save every home.”
The goal is to lower many endangered homeowners’ payments to no more than 31 percent of their income. But that depends on a high degree of cooperation by lenders who have been increasingly wary of new lending as the crisis has deepened.
Still, the Obama administration, after talking with mortgage investors, appears confident that it is providing the right mix of incentives and penalties to make sure mortgage companies take part. Obama said he backs legislation in Congress to allow bankruptcy judges to modify the terms of primary home loans — an idea ardently opposed by the lending industry.
“Taken together, the provisions of this plan will help us end this crisis and preserve, for millions of families, their stake in the American Dream,” Obama said. Yet, he also added: “We must also acknowledge the limits of this plan.”
He called on lenders, borrowers and the government “to step back and take responsibility” and said: “All of us must learn to live within our means again.”
There’s broad economic anxiety across the nation, an Associated Press-Gfk poll indicated.
Nearly three in four people say they know someone who has lost a job in the past six months as a result of the tough economic conditions, according to the poll, released Wednesday. And more than half say they worry about being able to pay their bills and about seeing their retirement investments decline. So far, Obama’s job approval rating still is high, at 67 percent, and he is scoring strong marks for his handling of the economy.
The president unveiled his housing plan at a Phoenix-area high school in a state with one of the country’s biggest foreclosure rates.
Nationally, Moody’s Economy.com says that of the nearly 52 million U.S. homeowners with mortgages, about 13.8 million, or nearly 27 percent, owe more than their homes are worth after many months of declining prices.
How soon will the new plan show results?
“You’ll start to see the effects quite quickly,” Treasury Secretary Timothy Geithner told reporters in Phoenix, noting that rules governing the changes will be published March 4.
In theory, homeowners facing foreclosure or borrowers owing more on their homes than their mortgages are worth would have more opportunities to refinance their loans so that they have lower monthly payments. Lenders would voluntarily participate in the government programs.
The $75 billion Homeowner Stability Initiative would provide incentives to mortgage lenders to cut monthly payments in an effort to persuade them to help up to 4 million borrowers on the verge of foreclosure. The goal: cut monthly mortgage payments to sustainable levels, using money from the $700 billion financial industry bailout passed by Congress last fall.
Another part would specifically help people with dwellings whose market value has sunk below the principal still owed on the mortgages. Such mortgages have traditionally been almost impossible to refinance. But the White House said its program will help 4 million to 5 million families do just that — if their mortgages are owned or guaranteed by Fannie Mae or Freddie Mac.
To boost confidence, the Treasury Department said it would double its support to the two mortgage giants that the government essentially took over last fall.
It said it would absorb up to $200 billion in losses at each company by using money Congress set aside last year and will continue purchasing mortgage-backed securities from them. Fannie Mae and Freddie Mac are projected to need a combined government subsidy of about $66 billion, well short of the new promise of up to $400 billion.
Obama emphasized that his plan focuses on helping families who have “played by the rules” stay in their homes.
But, he said, it will do nothing to help “the unscrupulous or irresponsible.” He cited so-called speculators who took out risky loans on multiple properties to make money by selling them during the housing boom, lenders who took advantage of naive buyers by glossing over the fine print, and people who willingly bought homes that were way beyond their means.
“This plan will not save every home,” Obama said.
Associated Press Writers Alan Zibel, Mark S. Smith, Jennifer Loven and Martin Crutsinger in Washington contributed to this report.
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