If you were one of those homeowners who had a foreclosure recently, did you know that you could become a homeowner again sooner than you think?

There is no doubt that a foreclosure affects your credit score, but according to Jeannie Bolger, Senior Loan Officer with Nova Home Loans, it all depends on your situation.

“After a foreclosure, your credit score will definitely go down between 100 and 200 points on the credit FICO score,” said Bolger. “But it’s a tough question because everyone’s situation is so different and it depends on past payment history, mortgage late payments and debt.”

But Bolger also said the waiting period after a foreclosure for an FHA loan is 3 years, for a VA loan it is 2 years, and a conventional loan is 4 years. Although this seems like a long time, it is a perfect time to re-establish your credit and make yourself more desirable for a loan.

And if you did foreclose on your home, Bolger believes there are some important tips you need to follow.

“Do not overbuy and really know what your budget is,” she said. “Have an emergency fund to allow for ‘unexpected’ emergencies and have a savings account to make mortgage payments if you lose employment or get sick.” Have your credit run 6 months after the Foreclosure by a mortgage professional so you will be better prepared to meet the minimum FICO score requirements required by the loan terms.

If you or someone you know foreclosed on a home, there are options available to ensure homeownership again. The US Department of Housing and Urban Development offers tips about foreclosure and information about the process.

If you would like more information on what it takes to buy a home again after foreclosure, give me a call today at 602-456-9388 and I can find you the perfect home in the valley!

Let’s face it, everyone and their grandmother has a cell phone these days.

Aside from the fact that teenagers can’t hold a conversation that includes eye contact, they are great things.

They are so amazing that 90% of Americans send text messages. This is a staggering number! I wonder if they count the “ppl wh txt w/o vwls”?

Another increasing trend is the number of Americans using smartphones! Over 34% of Americans use a smartphone in their daily life and that number is only increasing.

So what does this have to do with you? Well, if you are selling a house, there are new ways to give buyers instant access to information about a home! The number of people using apps, text messages, and a new thing called Quick Response code, or QR for short, are on the rise.

This is what I am most interested in when it comes to using this new technology as an advantage.

Remember last week’s blog post about how short sales are an increasing share of the Central Phoenix market? Unfortunately, this is the new reality for at least the next few years. But if you need to short sell your home, don’t worry! Using tools such as text messages and QR codes, I can help your home get seen above the other homes on the market. (See also my post from yesterday on other Short Sale Resources I’ve developed.)

Want to know how it works? It’s so simple and you can try it yourself!

Text the special 6-digit code on the flag to the number and you will receive information on this house.

Or, if you have a smartphone and a barcode scanner app on your phone, scan the special code and you will be directed to a special website with information on the house.

HOW COOL IS THAT?!?

Using this technology is a great idea and can really help increase the number of people that view the home. Using the old-fashioned flyer box is fine; the problem with those is the fact that you will have to continuously check and replace the flyers otherwise there might be a missed buyer.

Smartphones are amazing pieces of technology and having the ability to quickly access information can make buying or selling a home much easier.

I wrote last week about how the market inventory is shrinking, and that an increasing number of homes are short sales.

Ironically, the average days that a house sits on the market is actually going down dramatically this year. See the graph below.

That tells you that people are making offers faster and short selling banks are getting answers quicker than last year.

If you are thinking to short sell, now is the best time since the crash started.

I want to tell you how I work to get them closed. If you’ve been thinking to short sell, the following could save you some greenbacks.

Many agents work with large law firms that charge you a huge retainer to represent you to the bank short selling the property. In my experience, these firms are not necessarily any faster at getting them closed. In fact I represented buyers who waited 4 months for the firm’s negotiator to get an agreement letter from a bank, only to find that they lost the agreement letter for a month. The deal fell apart due to this.

I’m sure most attorneys are working hard. But I think some are taking on too many clients, or are promising too much.

Here is how I work.

First, if you are thinking to short sell, I refer you to the Law Offices of Roberta Voss (602-697-0730). She won’t represent you as a negotiator to the bank. But she will sit with you for a reasonable fee and make certain you understand the short sale process from the legal perspective. (Whatever you do, don’t skip that talk with an attorney.)

Second, I work directly with either Old Republic Title or Chicago Title, both of whom have dedicated short sale teams that communicate with the bank directly. Why is this such a big deal? Well, because, first, they charge you nothing, zilch, nada! Second, because they are on the phones with the banks all the time, they can get heard above the din.

Third, I use social networks, text networks, QR codes and mobile websites to make certain everybody sees your home.

There is a lot to think about with short sales. If you are thinking to take this step, please give me a call first at 602-456-9388.

What is Condo Chaos you ask? Condo Chaos is only the most exciting thing to happen to Phoenix since the last exciting thing! Come check it out and get an amazingly low price on the condo of your dreams this weekend only! Condo Chaos, CONDO CHAOS, CONDO CHAOS!!!

(Turn off used car salesman speech here.)

OK, that’s better.

I just want to keep you informed about the incredibly low prices of condos in the Central Phoenix and surrounding areas. We already know the housing market isn’t the greatest, but that just means it’s a buyer’s market and you have the opportunity to snag some amazingly awesome prices!

I just want to make sure you know that if there ever were a time to buy, this is it. In fact, since the condo market is the weakest sector of the housing market, the price of condos is lower than low. But just how low is the price of a condo though…

Well, according to the latest data (see below), there are currently 2,156 condo listings across Maricopa county with an average list price of $167,890.  (Remember, this is an average of
the entire county so it includes those multi-million
dollar condos in the Scottsdale and Biltmore area.)

Now you want to know something that will knock your socks off? The average closing price of CenPho condos last year were almost half the price at $84,341! How amazing is this price? All the amenities of a great condo – location, style, and feel – for an incredibly low price.

Living in the Central Phoenix area has never been more affordable. Not only do you get a smokin’ deal, you get to live in an amazing place full of life and excitement.

If you would like help finding the perfect condo, I am here for you! I will make sure you get the best condo during the Condo Chaos madness!

(I think that was the largest number of exclamation points I’ve ever put in a blog post. I need to rest. I think I’m getting the vapors.)

(Click the images below for larger view)

County-wide 2010

County-wide 2011

Central Phoenix 2010

Central Phoenix 2011

So when you are looking to buy a home, how much do you think you need for a down payment? 5%? 10%? What about 20%?

I get people saying to me all the time, “I can’t buy because I don’t have 20% down.” But its not true!

I want to find the news reporters who keep this myth alive, dress them in Lady Gaga’s meat dress and introduce them to a pack of coyotes.

The reality is that with a high enough credit score, you could qualify for a loan where you only need to pay 3% down!

How amazing is that? A new home with only 3% down!

But what about all this talk of 20% down to qualify?

It’s all nonsense. Period. End of story. Jeannie Bolger, Senior Loan Officer with Nova Home Loans, believes the 20% down payment myth stems from misinformation and everyone wanting to give advice without actually doing the research.

(By the way. I love Jeannie. She is great. She gets people qualified and works hard throughout the process.)

So how can you qualify for the 3% loan? To begin, the loan is backed by FannieMae/Freddie Mac (aka, the guv’mt). According to Bolger, to qualify you need at least a 680 credit score. Keep in mind this is only a minimum and is not a guarantee.

Having a lower credit score doesn’t hinder you, in fact, if you have a credit score of 640 you could qualify for a loan with paying 3.5% down!

Don’t get me wrong, paying more as a down payment is great if you can afford it because it can save you money on interest rates. Plus, paying 20% down allows the home buyer to waive the mortgage insurance premiums.

This is an amazing opportunity for people to take advantage of and should not be passed up. With interest rates near (or under) 5% and homes at their rock-bottom prices, now is the best time in over 40 years to buy a home.

So snap up those short sales or foreclosures with an incredibly low down payment and give me a call today to help you find the perfect home!

Short sales. Foreclosures. The media will tell you how bad it is.

I’ll tell you, this is a market of opportunity.

But if you are going to take advantage of this opportunity, you need to understand the pros and cons of short sales.

Why? Because short sales are becoming an increasing proportion of the market.

Why? Because the market is turning around.

Sound counter intuitive? It is, I agree.

The number of short sales has increased as a portion of the entire market because the number of foreclosed properties is shrinking.

With the number of foreclosures drastically shrinking in the Phoenix real estate market and the rapid increase of short sales, those looking to buy will be forced to wait unless they decide TODAY to buy (not literally today, but in the near, and I mean very near, future).

Check out the graphs, below. In the first one you can see those two pies. Notice that the one of the left represents active listings. See the light blue area? Those are “pre-foreclosures” or “short sales.” The red area is lender owned property and the dark blue represents normal sales.

So, look at the right hand pie. These are monthly sales –those that actually close. The red area is much larger because the foreclosed properties actually close.

With the increased number of short sales on the market, a homebuyer waits an average of 3-6 months before closing the deal, and only 40% of transactions actually close.

So, what is the trade off? Not much, really. You can see the bar graph below the pies showing that prices for foreclosed homes are lower than short sales. Problem: there are fewer of them to look at.

Am I saying not to even look at short sales? Nope. Just know what the risks are. If you need to close in a hurry, don’t look at short sales. If you have a longer time horizon, then this can be a great way to find some incredible deals.

Check out the graph further below to see how the number of short sales versus foreclosed properties has changed over the course of the year.

Then give me a call and let’s talk about how I can help you.

The Phoenix Business Journal recently praised Phoenix for boasting “one of the nation’s top clean economies” in the nation. It seems they would be better off praising Warren Buffet for getting a part time job at McDonalds.

What I mean is why is Phoenix only ranked 20^th? This beautiful city is ranked behind other cities such as New York, Chicago, Washington, and Philadelphia. And the last I checked we are one of the sunniest cities in the nation.

Want to know something even more pitiful? Phoenix added only 4,000 jobs between 2003 and 2009, ranking it 34^th in the nation.

34^TH!?!

I realize I shouldn’t be so negative since Phoenix does boast almost 23,000 jobs in the clean job sector.  Any job is a good job, right?

But I still can’t get over the fact that this is a far cry from what it should be given our prime location for clean renewable energy. In fact, the Phoenix area has the potential to power the entire state with solar energy. Not only that, but clean renewable energy brings high-paying jobs and can help stabilize our local economy and the Phoenix real estate market! This is a no-brainer and we need to take advantage of our amazing location.

Granted there have been large energy companies taking root in the Phoenix area, First Solar Inc. and Suntech Power Holdings, but it seems to be the economy that is holding other companies back.

I have a friend at a large employee placement firm who is telling me that they are placing many new employees in Arizona as renewable energy jobs are created. But, he says, we could be moving so much faster if we can just get over the economic hurdle.

“When the capital markets get going, you’re going to see the market really take off,” said Steve Zylstra, president and CEO of the Arizona Technology Council.

Until then, write your legislator and tell them we want solar jobs today!