One of the pretty common financing questions I hear these days is, “how long do I need to wait to obtain financing after a bankruptcy, foreclosure or short sale?”  Matthew Belmont, Sr. Mortgage Consultant with On Q Financial provided the following outline of the waiting periods by loan type.

Conventional Loan

• Chapter 7 Bankruptcy ~ 4 years from discharge date
• Chapter 13 Bankruptcy ~ 2 years from discharge date
• Foreclosure ~ 4 years from completion date
• Deed-In-Lieu of Foreclosure ~ 4 years from completion date
• Short Sale ~ 2 years from completion date

FHA Loan

• Chapter 7 Bankruptcy ~ 2 years from discharge date
• Chapter 13 Bankruptcy ~ 1 year of the payout must elapse & payment performance must be satisfactory – buyer must receive permission from the court to enter into a mortgage
• Foreclosure ~ 3 years from completion date
• Short Sale ~ 1 year from completion date if the borrower was current at the time of the short sale and all installment payments for a 12 month period~ 3 years from completion date if in default at time of short sale

 VA Loan

• Chapter 7 Bankruptcy ~ 2 years from discharge date
• Chapter 13 Bankruptcy ~ 1 year of the payout must elapse & payment performance must be satisfactory – buyer must receive permission from the court to enter into a mortgage
• Foreclosure ~ 2 years from completion date
• Short Sale ~ No specific information on this yet, assume foreclosure rule of 2 years

 USDA Rural Loan

• Bankruptcy (Ch 7 & 13) ~ 3 years from discharge date
• Foreclosure ~ 3 years from completion date
• Short Sale ~ No specific information on this yet, assume foreclosure rule of 3 years

Do you have additional questions about financing? Feel free to contact Matthew at 480-236-3541 or matthew.belmont@onqfinancial.com

This 3-day juried show on the Avenue of the Fountains features nearly 480 artists and artisans from across the United States and around the globe, and attracts 200,000+ visitors. Food booths and seating areas abound throughout the venue, with great breakfast, lunch and rest stops situated at locations in the middle and at both ends of the festival area. Live musical entertainment.

Event is free. Parking is free. Rain or Shine.  For the safety and consideration of others, please leave your pets at home.  

Directions to the Festival:
From the South East Valley
Take 87 – (Country Club Drive) north to Shea Blvd., turn left at Shea Blvd.  At the first traffic light, turn right on to Saguaro Blvd.  Continue on Saguaro Blvd. to downtown and follow signs for parking.

From the South West Valley
Take 10 East to 202 East.  Exit 202 at 87 – (Country Club Drive). Turn left at exit, heading North.  Continue for approximately 12 miles to Shea Blvd.  Turn left at Shea Blvd. At first traffic light, turn right to Saguaro Blvd.  Continue on Saguaro Blvd. to downtown and follow signs for parking.

From the North West Valley
Take 101 South.  Exit at Shea Blvd. East.  Continue on Shea Blvd. for approximately 5 miles.  Turn left to Palisades Blvd.  Continue on Palisades Blvd. to downtown and follow signs for parking.

We all know the economy is tough right now. Most people are looking for ways to cut cost and control their monthly expenses and spending. Often they do not realize how much they are paying to live in their homes. So let’s take a look at the home budget and see where you might be able to make some changes.  

Mortgage: Your largest expense is probably your mortgage. Mortgage rates are historically low. You might be able to refinance and lower your monthly payment.*

Homeowner’s Insurance: Check in with your agent once a year to see if you are getting the right coverage at the best price. 

Real Estate Taxes: The higher the assessed value of your property, the higher your real estate taxes. So the next time your city or town does a reassessment, don’t be afraid to ask for abatement if you think they have given your home too high a value. Do your homework. Look up the assessments for similar homes in your neighborhood. The records are public and usually available at the tax assessor’s office.  

Recurring monthly expenses:

• If you pay for town/city water, town/city sewer or a homeowners’ association, those are probably fixed expenses you can not cut. 
• If you pay for private trash collection, lawn and gardening services, exterminator services or pool maintenance periodically look around for cheaper rates. Even if you are happy with your current supplier, this information could help you get a better deal.
• Phone, internet and cable TV services should be reviewed at least once a year to see if competitors offer better prices.
• Energy costs. Oil companies should be reviewed once a year, before heating season begins. And if you think oil may be going up, pick a supplier who will lock in the price. In a growing number of areas, you can also find competing electric companies. Find out who has the best deal. If you heat and air condition with gas, ask your local gas company about special offers.

Maintenance and Repairs: It is always cheaper to fix a problem as soon as it comes up, rather than letting it go. It costs very little to re-caulk around a bathtub, but if you ignore it, you could wind up replacing a wall. Put aside $500 to $1,000 a year to take care of minor repairs and maintenance.

Major Improvements: If you have your heart set on updating a kitchen or bath, installing a deck, or even putting on a new addition, get a rough cost estimate and decide how many months from now you would like to start. Divide the cost by the months and begin putting money away for it each month.

Your home is your biggest investment. But with a little effort you can make your home costs smaller.

Tips provided from Home and Wealth Newsletter, Mike and Betsy Moshofsky, Prime Lending.

*Thinking of refinancing? Contact Mike today at (480) 332-8545.

I went to the National Association of Realtor’s website today and found a lot of newly released reports on the Median Home prices by Metro Area.

Mean vs Median:  A mean is calculated by adding up all the values in a distribution and then dividing the sum by the total number of values contained in that distribution. To find a median value, one takes all of the values in the distribution, sorts in ascending order, lines them up and finds the middle value.

They sound similar, and in may instances, there is not much difference between the two values. But the reason NAR concentrates on the median instead of the mean is because the mean value calculation has a limitation that can prevent it from reflecting an “average.” In calculating home sales price statistics this limitation occurs when the sale price of one home varies greatly from the remainder of the homes. This can skew the average.

The reason NAR concentrates on the median instead of the mean is because the mean value calculation has a limitation that can prevent it from reflecting an “average.” In calculating home sales price statistics this limitation occurs when the sale price of one home varies greatly from the remainder of the homes. This can skew the average.

For a interactive map, click on this link: Market Median Home Price map

For the 2009 4th Quarter Median Sales Price of Existing Single Family Homes by Metro Area Report, click on this link: http://www.realtor.org/wps/wcm/connect/7ec35f80415d4c56a9d1b908069f8e0c/rel09q4t.doc?MOD=AJPERES&CACHEID=7ec35f80415d4c56a9d1b908069f8e0c

For the 2009 4th Quarter Median Sales Prices of Exisiting Condos/Co-ops by Metro Area Report, click on the following link:  http://www.realtor.org/wps/wcm/connect/5bcc3f00415d4928a9aab908069f8e0c/rel09q4ct.doc?MOD=AJPERES&CACHEID=5bcc3f00415d4928a9aab908069f8e0c

Last Friday the AZ Biltmore Hotel & Resort hosted an event, ” Gloom and Zoom” where a panel of real estate experts were assembled to give their assessments of when the real estate market in Phoenix will recover.

The good news is that real estate experts Elliott Pollack, a Phoenix economist, and R.L. Brown, a housing analyst and real estate investor, believe the residential market has bottomed out.

The bad news is they feel we will ”float along the bottom for months, if not years”.  They are predicting the stabilization to occur in 2014.

Brown beliefs there are two ongoing concerns that are hindering recover, lack of consumer confidence and job growth. He is quoted as saying, “The mood is down. People are scared. Everybody knows someone who is unemployed or underemployed. ”

Pollack feels the problem stems from ”dearth of jobs and nil population growth creating an economic stalement that won’t loosen for years.”  He is quoted as saying, “The ugly truth is that no one knows for certain” when jobs will be created and population growth return. 

What are my thoughts? I agree with the “experts” that unless we can stimulate job growth in Phoenix we can not begin to recover. I also believe that there are still a substantial number of interest only loans and ARMS that are going to reset. Until they do we are looking at a steady flow of short sale and foreclosure listings.

What am I seeing out in the trenches that points to recovery? Personally I am seeing prices going up slightly and months of supply going down in SOME areas. In other areas I am seeing no change in the monthly numbers.

Will it take until 2014 to stabilize? Your guess is as good as mine. I guess time will tell.

I have to admit I have become pretty spoiled with the 300+ sunny days a year in Arizona. We have had 3 straight day of rain and cold and I have had enough.

Driving back into Fountain Hills this aftenoon I was hit with a curveball….HAIL! Guess it still beats shoveling snow?

If you are looking for great food and an outdoor event in March why don’t you head down to the Phoenix Art Museum for their culinary event, “Devoured”.  The event will be held in the Museum’s Sculpture Garden on March 13th & 14th, 2010 from 11am to 4pm and features over 35 Valley based top notch  restaurants. Local Arizona wineries will be there to pair wines with the culinary treats and local bands will be providing entertainment.

Buy Tickets

Personally I am not a big fan of “Hallmark Holidays” but some people are. So today I thought I would take a break from real estate news and re-print “Valentine’s Day Fun Facts’” and “What Color are your Roses” from the Fidelity Home Warranty February Newsletter.

Valentine’s Day Fun Facts

• About 1 billion Valentine’s Day cards are exchanged in the US each year. That’s the largest seasonal card-sending occasion of the year, next to Christmas.

• Women purchase 85 percent of all valentines.

• Parents receive 1 out of every 5 valentines.

• About 3 percent of pet owners will give Valentine’s Day gifts to their pets.

• Worldwide, over 50 million roses are given for Valentine’s Day each year.

• Approximately 110 million roses, the majority red, will be sold and delivered within a three-day time period.

• 73 percent of people who buy flowers for Valentine’s Day are men.

What Color are Your Roses?

Did you know that every rose color carries its own meaning? Take a look at the list below to see the significance of some of their various hues in your Valentine’s Day life.

Red Roses are classic and a popular choice since their message is an unmistakable expression of love. The color red symbolizes enduring romantic love and passion.

Pink Roses symbolize joy or thankfulness and are employed to express your gratitude towards your beloved for loving you. They are also expressions of gentility, happiness and appreciation.

White Roses signify innocence and girlhood. They also symbolize impeccable love, silence, reverence and humility.

Coral Roses are an ideal choice for the more passionate as they reveal desire and passion.

Orange Roses speak of desire, fascination and enthusiasm. They are good choices to hint your interest in going ahead with a new relationship.

Yellow Roses are not for romantic purposes. They signify ’congratulations,’ joy, gladness and delight, caring, ’Welcome back,’ and ’remember me’. They can also suggest jealousy.

Lilac or Lavender Roses say love at first sight.

Peach Roses portray feelings of gratitude, admiration, sociability, success and friendship.

When you have a big gathering at your house, no matter where you try to set up the food and beverages, the crowd inevitably ends up gathering in your kitchen. The problem is you may not be proud of the kitchen you have.

So what do you do? There are many different ways for you to take your existing kitchen and turn it into a place that you are proud to show off to your friends.

1. Appliances: Adding new appliances is one of the easiest things you can do to change the look of your kitchen.

2. Cabinetry: You can rip apart your entire kitchen and replace all of your cabinets, or just sand and paint existing cabinetry or change the hinges and handles for a new look.

3. Countertops and floors: If you want a completely new look or shape to your countertop, concrete has become a surface that is extremely popular. When it comes to flooring, concrete is as viable an option as wood, linoleum or tile.

Concrete floors and counters not only look great but are also very durable and easy to maintain. Check out ConcreteNetwork.com to find a contractor in your area that can help in redesigning your kitchen.

Reprinted from Fidelity Home Warranty February Newsletter

A lot of homebuyers begin their home search on the internet. I get calls all the time from potential homebuyers inquiring about a property they have found. The problem I find is that a lot of these sites are not updated in “real time” and in some cases the home listing in question is not an “active” listing.

To follow are the different statuses used for listings offered thru the Arizona Regional Multiple Listing Service (ARMLS) and what they mean.

Active: There is an active listing agreement with the seller. There are no offers on the property at this time.

Active With Contingencies (AWC): This status is a little tricky since there are 3 different types of AWC statuses. They are as follows:
AWC-C: There is an offer on the property. The offer is contingent on the sale of the buyer’s property.
AWC-I: There is an offer on the property but the seller has instructed their agent to continue to actively market their property to obtain additional offers. This type of status is most commonly used when the listing is a short sale. When the seller of a property is selling short and they have accepted an offer to purchase their home, the status of the listing is changed to AWC-I until the bank agrees to accept the offer from the buyer.
AWC-O: There is an existing option to purchase the property.

Temporarily Off Market (TOM): The seller has an active listing agreement but the home is not available for showings or offers. This listing status is typically used when repairs need to be made, the owner is deciding whether to cancel or extend an existing listing, or the owners are unavailable for showings or to respond to an offer to purchase for a period of time.

Pending: There is an accepted offer to sell or lease the property.

Closed: The property has been successfully sold or leased.

Expired: The listing agreement term between the broker and seller has expired.

Cancelled: The seller has cancelled the listing agreement and the property is no longer available for purchase or lease.