First, a quote from our resident expert, Sr. Loan Officer of Nova Home Loans, Jeannie Bolger:

Effective June 11, 2012–for  any FHA note that was endorsed by HUD on or before May 31^st, 2009–qualifies for reduced MIP on a Streamline Refinance (No Appraisal).  Upfront MIP goes to .01% and Annual MIP will be .55%. Current upfront MIP is 1.75% and the Annual is 1.25%. HUGE SAVINGS.

What? You don’t speak Klingon or Mortgagease?

This may help.

The Federal Housing Administration (FHA) is a branch of the Department of Housing and Urban Development (HUD). The FHA was developed during the Great Depression as as an effort to stimulate the real estate housing market. The main purpose of the FHA is to encourage home ownership in the United States. To accomplish this, the FHA insures mortgages against the default of borrowers. 

Do you have a current FHA loan (note) that was endorsed (or closed) by HUD prior to May 31, 2009? If so, your FHA loan qualifies for a significant reduction in your upfront Mortgage Insurance Premium (MIP; an insurance policy that compensates lenders/investors for losses in the event of a defaulted mortgage loan) on a Streamline Refinance (No Appraisal).

The current upfront MIP is 1.75%. Let’s say your FHA Streamline Refinance of your home is for a new $100,000 mortgage. The FHA will charge you $1,750 upfront on the mortgage insurance premium (MIP). You pay this at closing and the $1,750 payment  automatically rolls  into your new loan balance.

On June 11, the new upfront MIP will be  .01%  This is a HUGE SAVINGS. Using the $100,000 new mortgage example above, you would only pay $1 !

Also beginning June 11, 2012, the FHA will reduce it’s 1.25% annual MIP ($1,250) to just .55 % for certain FHA borrowers (or $550)–more than a 50% savings!

This is one way that FHA can make a real difference to help homeowners who are doing the right thing, paying their bills on time and want to take advantage of today’s low interest rates. By significantly reducing costs for these borrowers, we can make certain they cut their monthly mortgage burden which will benefit the housing market and the broader economy in the process,” said Federal Housing (FHA) Commissioner, Carol Galante. Read the full HUD Press Release here.

Read Jeannie Bolger’s quote at the top of this post, again, and you’ll be amazed at how much Klingon Mortgagease you speak!

REMEMBER: For home loans endorsed by HUD before May 31, 2009

PLEASE NOTE: Loan application may be started prior to June 11^th, but FHA case # must be ordered after June 11^th, 2012 to qualify for program and reduced MIP.

Call Jeannie Bolger, Sr. Loan Officer Nova Home Loans, for more information:  (602) 550-8674

[Photo: Images_of_Money]

Phoenix homeowners have kept a close watch on the housing market with a certain air of disappointment. Chances are they had high hopes for their homes. For most people the idea behind home ownership is to buy a home, live there for as long as the location and characteristics of the home suit their lifestyles, and sell the home years down the line while pocketing a little extra built-up equity — or using it to buy a better home. Time is running out to short sale and avoid possible tax liability.

Prices on Downtown Phoenix homes have been steadily rising for the past year. When inventory goes down, prices go up (you probably learned that in your high school econ class) But, that’s not bound to last. Home builders are ramping up quickly. So, the rising prices will level out a little later this year.  People are buying in the late spring and summer for job relocations and to close in time to get kids in to new schools, etc.

So if your looking to sell your home, now’s the time. I truly enjoy helping people make smart real estate decisions. Call today

Here’s a little more background: Since 2007, the Mortgage Debt Relief Act has allowed owners selling their homes through a short sale to do so without having to pay tax on the amount their mortgage holders forgave them. In previous days the money that the bank forgave on the loan would have been considered by the IRS as some sort of income on which you must pay taxes!

That will end December 31, 2012, giving homeowners until the end of this year to get out from under their debt without facing tax consequences.

Real estate brokers and agents specializing in the listing and sale of short sales have become the busiest in the industry. The moral here is that if you are going to do a short sale, do it now.  While most short sales take 3-4 months, some can take longer.  You do not want to be sweating out a December 31st closing.

Call us today at 602-456-9388 and we can make it happen for you!

Short sales sound worse than they are.

Two years ago they took a lot longer and confused many more people (agents and lenders, alike). Now the systems are in place to make these transactions close more smoothly.

Even more important, if you qualify for the HAFA Program, you could get up to $4,500 for short selling your home!

A short sale is where the seller owes the bank more than than the property is worth. The term “short sale” literally means that the property is being sold “short” of what the seller owes the bank. In a short sale transaction the bank must agree to accept less money than what the seller owes and agree to release all liens on the property so that the property can be sold.

If you’re thinking about short selling your home there are a few short steps to the process:

1. Find an Attorney to speak to about your short sale. This shouldn’t cost you a lot of money. You can usually get an initial consultation for about $250. You DON’T need to have an attorney negotiate with the bank for you. If you have a tax attorney or CPA, speak with him or her, too!

2. Get your Property Listed. Listing your property with a seller with short sale knowledge is key to a smooth transaction. This is where I come in.

3. Find a Buyer. You should know that the average “days on market” are much, much lower now than they were even six months ago. This really should not take us long.

4. Send a contract to your lender along with proper documentation. We’ll work with you to make sure all the paperwork is in order for quicker approval. This is the part of the process that takes the longest. But I can take much of the pain out of this.

5. Get Approval and Close Escrow. This part goes largely the way normal sales go –inspection, appraisal, close of escrow.

I see it more and more everyday. The housing inventory in Phoenix is shrinking and buyers are looking to make offers and get approved as quickly as possible. But for new or first time home buyers the steps to approval can be foreign and slow down the process, which is the last thing you want in this market.

But have no fear! Jeannie’s here!

It’s important as a home buyer to get pre-approval to expedite the process. In short: you want to have a pre-approval letter in hand before you even step foot in a potential home.

Now don’t get confused between pre-qualification and pre-approval.

A mortgage loan pre-qualification is simply an estimate of how much house you can afford and how much money a lender would be willing to loan you. This can be done over the phone in 10-15 minutes by providing information on your income, assets, debts, and a potential down payment amount.

A pre-approval takes more time, but can be just as easy. Getting pre-approved means that you have a tentative commitment from a specific lender for mortgage funding. You provide a home loan lender  with all that fun financial information you probably keep in a drawer in your house (tax returns, pay stubs, assets, debts, etc.) They will run a credit check and work to verify all your employment and financial information. Jeannie can take care of this with you in about an hour in her office.

In the house-buying process, the benefit of being pre-qualified or pre-approved is twofold. Not only do you have the added comfort of knowing what you can afford, the seller may also accept your offer over another if you are pre-approved and the other party is not.

So what are you waiting for?! Please call Jeannie Bolger, Sr. Loan Officer for more information.

Or call me for more information about the market: 602-456-9388.

We all know how important downtown growth is for our economy. As you can probably tell from this blog, I’m a big fan of Green Vendors and sustainable growth downtown (even if the term “green” has been around more than Kim Kardashian).

This image is from 2010 Green Build Conference. I just wanted to show off that I met Ed Begley Jr. Yep, I'm a total renewable energy dork.

Well, if your a pro-environment, sustainable vendor in the city of Phoenix, Green Team is pleased to present the Green Vendor Showcase of Opportunities on Feb. 9

This event is a chance for vendors to work with the city’s EPP Program as well as get one-on-one interaction with some of the city’s department big wigs and discuss new opportunities for the city to make greener choices. And better yet, there’s no cost to participate! But you have to work fast. Vendors need to register but January 31st, (as in tomorrow!) by the end of business hours at the office of Environmental Programs. You can Call 602-256-5669 to register and ask any questions.

Want to just stop by and see whats new in the world of sustainability? Well, you can check out the first annual “We Love Green Vendors” showcase on 2/9 from 9:30-11:30 am in the atrium of Phoenix City Hall, 200 W. Washington St.  The event is free!

Good News for home owners in distress!

And by “Good News” I don’t mean some shady scheme to short sell your house to an off-shore corporation in the Caymen Islands.

Fannie Mae is introducing an Unemployment Forbearance program which provides assistance to borrowers dealing with unemployment.

These loans will allow the borrower to receive a reduction or suspension of their monthly mortgage payment for a specific period of time and will prohibit services from foreclosing on your property.

A mortgage loan is eligible for an Unemployment Forbearance if all the following criteria are met:

• The property cannot be vacant, condemned, or abandoned.
• The mortgage loan cannot be an FHA, VA, or Rural Housing mortgage loan.
• The property must be a principal residence. Second homes and investment properties are not eligible.
• The borrower may be either delinquent or default is reasonably foreseeable.
• The borrower must have a financial hardship due to unemployment.

The Forbearance will be canceled if:

• Any of the eligibility criteria and terms stated above are no longer met.
• The borrower advises the servicer that he or she has become employed or is no longer actively seeking employment.

If you need more information contact Jeannie Bolger with Nova Home loans.

Many people recognize this upcoming Monday, as a day off from work. But really its a celebration of Martin Luther King Jr., a man who did great things for our country.

If you want to celebrate the right way, HandsOn can help. HandsOn Greater Phoenix is a great NonProfit in Downtown Phoenix that serves the community at large. Every month, HandsOn offers more than 60  diverse, high-impact, one-time community service projects. Martin Luther King Day is a large-scale special days of service for them.

This Monday at 2 p.m. you can head to Fair Trade Cafe & Gallery at Civic Space Park for Eat, Dream, Share. There will be music, poems, songs, laughter, ideas, food and to share personal expressions of how Martin Luther King Jr. impacted your life. And it’s like a pot luck. Participants are asked to bring a dessert to share. If you’re bringing the kids (who have the day off too!) There’s an  spoken word and musical performances by Queen of Queen’s Band Project, Miouo Nance the poet & The Positive Vibes from 6:30 PM-9:30 PM at the A.E. England Building Civic Space Park.

If you’d like to get a jump start on your weekend, HandsOn with also be hosting a 16+ Mural Revitalization this Saturday from 8-12 updating a 1998 mural on 16th Street.

Spots fill quickly, so contact them today and celebrate.

Market trends are upon us again! Try to contain your excitement.

Our Friend Cynthia Lujan from Old Republic Title was nice enough to send us new stats on the current market.

Between November and December supply was is once again on a downward trend for all price ranges. The strongest decline in supply is for homes under $100,000. Sales rates look better between$200,000 and $400,000 while above $400,000 demand is still a problem.  Demand from owner occupiers remains subdued due to strict underwriting standards for “jumbo” loans, but cash buyers including landlords and other investors are quickly snapping up a large part of whatever comes onto the market.

The supply from foreclosures continues to fall with more pending foreclosures getting resolved by short sales. Lenders are receiving fewer homes into REO inventory as a higher percentage of trustee sales result in a sale to a third party. Despite public perception to the contrary, price per sq. ft. has gone up  in the past year. (Do we hear that on the national news? Noooo!)

The strongest recent movement is for the price range below $100,000, where price per sq. ft. hit bottom in February and is now up nearly 7% over the last 12 months. With supply on a downward trend again we anticipate that the peak spring season will find most buyers frustrated by a lack of choice and fierce competition from other buyers.

So what does this mean for you? Buy now!

The inventory of houses between $100,000- 200,000 are down 46.6% and sales prices are now 6.9% higher than last year. Homes from 200,000-400,000 numbers aren’t as dramatic, with supply down 26% and prices up .3%. As all we all learned in our 10th Grade Economics class, as supply grows more limited, demand will drive prices up.

Need help finding a home? Call me today at 602-456-9388

You probably know about our up-coming second annual open air holiday market, the Phoestivus market.  You know about it, especially if you are a vendor or own a food truck.

Well, this year, it wil be expanded to 2 nights: December 14th and December 21st.

Here is the information for vendors from our planning committee vendor point person, Monika Woolsey.

WHO:  Local creators of arts, crafts, and foods!

 WHAT: Second Annual Phoestivus (New this year!  Pheats of Strength, Airing of Grievances, and a Phoestivus Pole!)

 WHERE:  Downtown Phoenix Public Market

 WHEN:  December 14 and 21, 4 to 8 pm

 WHY:  Because we’re all just super cool and want to celebrate that. 🙂

HOW:  Please visit this link to apply to be a vendor.  If you are not a regular vendor, the annual fee does not apply.http://foodconnect.org/phxmarket/?page_id=7212  Please note, if you are on this email list you’re getting first dibs at available spaces.  Please, if this event is important to you, submit your application ASAP.  I’m sending a general call for vendors this coming weekend.

We’re encouraging all vendors to be phoestive with their booths as well as having wares to sell.  Decorations of all kinds are encouraged!

A special note:  The Clarendon Hotel will be offering a special Phoestivus room rate for all of December.  We hope for those vendors coming in from a distance, this might be a nice evening for you to stay in town and kick back, instead of hurrying home.  More details later!

You will eventually be connecting with myself and Troy Benjamin as the vendor coordinators but until we receive word from the Downtown Market that you’re on the official list, we are officially out of the loop.  So be sure to get  your application in!

Monika Woolsey

Phoestivus Committee