More Foreclosures - More Problems?

As more and more foreclosure listings come on to the market, I see more and more lenders/Realtors write in the listing that the SPDS (Seller's Property Disclosure Statement) and CLUE Report or Claims History will not be provided.
In my opinion, there is no reason for a bank, other than wanting to "play dumb," to say they "can't" provide this information. While it may be obvious that they have never occupied the property, they still have some type (probably very limited) of knowledge about the property.
While I strongly believe that a buyer should always do their own "due diligence," I believe waiving their rights of disclosure in a contract should not be their only option.
Interestingly enough, while the market was heading straight up in the past, many buyers were waiving some of their rights from our contracts as well. Things like inspections, appraisals, warranties etc. were often waived to make an offer more appealing. Think some of these people would like a "do over?"
Fact is, in "good" markets and in "bad," people deserve to be treated fairly and represented well. As always, help and guidance is just a call or a click away...
"Just Call Nick" I am glad to help!

Times are Changing

There has been a lot of interesting articles in the news lately about the troubles in the mortgage industry. The "crisis" of predatory lenders, raising foreclosure rates, mortgage companies going out of business etc. is certainly news worthy.
Lender's are changing guidelines as they adjust to market conditions. Many of the programs offered in the past couple of years are disappearing; making it more challenging for some to qualify for a mortgage.
I still see many "zero down" offers from buyers even though articles like this one say they are vanishing. (I wrote about zero down loans in a post from Jan 19th)
My friend, Mark Mattingly, at Allied Home Mortgage recently pointed out some interesting facts about a product that may start to make a "comeback." That product is an "FHA" loan. You see, I haven't seen an "FHA" insured loan come in for quite some time. Most borrower's seem to have been finding better deals and more flexibility from conventional mortgage products. Some of the previous FHA guidelines have been changed to compete with conventional products.
Mark pointed out some interesting facts about FHA loans. For instance:
1. FHA is not a credit score driven product.
2. Mortgage insurance is credit score driven, except when doing a FHA loan. Whether a borrowers credit score is 450 or 850, they pay the same amount for mortgage insurance with a FHA loan, but not with a conventional loan.
3. A seller can not only pay closing costs, but can also gift the down payment to the buyer so the buyer can get into that house for ZERO CASH.
4. In Maricopa county, the loan limit for FHA, $263,150, is higher than the average home purchase price, meaning more than 50% of buyers can do FHA.
5. FHA is not limited to first time buyers.
6. FHA has no income limits like some competing mortgage products.
Time will tell if I see more people deciding to go back to FHA loans. I will continue to stay up on market trends so that I can guide people in the right direction when buying or selling a home. As always, if you need any help or guidance when it comes to buying or selling real estate.. "Just Call Nick!"

Find em on the web...

Let’s face it, the market always dictates the price of a property. BUT, in a market where a lot of competition exists, it is good to have real plans in place to aggressively promote your home over the competition. In my opinion, a “for sale by owner” home in this market is like a row boat in the middle of the ocean. We have been implementing new ways to market properties the past couple of years that help drive a ton of traffic to our web sites. This benefits all of our clients. Adding photos and descriptions to sites help as well. Examples are realtor.com, azcentral.com etc..
Property specific web sites can be fun, informative and useful. See an example at www.1605Brown.com. Even sites like zillow and craigslist can generate interest and mention specific features of a property while linking to our main site for even more information. Direct mail, if targeted correctly, can be useful as well. The process of submitting all of these sites can be costly (for the public) and time consuming but with most people beginning their search for a home on the web, we feel it is the best way for us to help sell properties in today’s market.
If you are thinking of making a move, please feel free to call and discuss your area, options etc. Several parts of town are doing fine, others will struggle for a while. “Just Call Nick!” I’m glad to help..

PLC - 3 very important words..

Everyone knows the old saying that the three most important words in real estate are: "Location, Location, Location!" I certainly agree that location remains, and will always be a very important factor in determining the value of a property. Over the past few years, when the market was in over drive, it appears many people forgot these three very key words and just wanted to get their hands on anything they could mortgage.
Our current market is now requiring Pricing, Location and Condition to be three words to be aware of. For example, with the current number (high) of available properties and the current number (not as high) of buyers in the market, a home needs to be priced (very) well, in a great location and in excellent condition in order to obtain a "normal" sale. Unfortunately, if even one of the three (price, location, condition) is not right, a home has a much harder time in our current market. Yep, the Summer selling season is upon us but buyers are picky and demanding and have every right to be. The shoe was on the other foot for a while.. For tips or advise on the current market, feel free to "Just Call Nick!" I'd be glad to help. :-)

Good or Bad?

With all of the doom and gloom real estate news that is popular with the media, I find it very interesting that billions of dollars are being invested in Arizona. A few of the projects and areas that I find interesting are the commercial and residential developments in the East Valley's Gateway area to the successful projects near Desert Ridge and the City North development that recently announced (4/17/07) $379 million dollars for phase one financing. Down town Tempe has plans for several new hotels and more "urban" housing projects that appear to be helped by the excitement of Light Rail. Other large projects are being developed in Phoenix and the West Valley as well. Our population is expanding, jobs are available and commercial development appears very strong. While the housing market still has a ton of inventory, it is allowing people to find more options than they have had the past couple of years. One page of the paper tells us the market is dead while the next says it is back to life. Fact is, some neighborhoods are doing great while others are struggling. If you are thinking of making a move, it is best to look at the values in your neighborhood and the neighborhood where you plan to live. That way, you get a better idea of what you are up against. If you need any help.. "Just Call Nick!"