Our much maligned Lending Industry is finally rewriting loan terms to head off foreclosures rather than just being concerned about selling foreclosures the lenders were forced to take back. This will have the effect of  stabilizing neighborhoods, communities, home values and our economy.

HOPE NOW Reports Close to One Million Permanent Loan Modifications Completed in 2010

975,000 permanent loan modifications have been completed so far in 2010 and that is 975,000 fewer foreclosures we avoided.

More than 174,000 Loan Modifications finalized in the month of June reflects an increase in the rate of loan modifications as Lenders become more proficient in processing loan modifications.

From January 2010 through June 2010, about 78% of mortgage servicers’ proprietary loan modifications included principal and interest reductions. These are real modifications that make homes affordable in this economy where so many are unemployed or worse – underemployed and underpaid.

In June, the industry completed about 123,000 proprietary loan modifications ~ a 10% increase from the previous month while another 51,205 HAMP Modifications were completed.

Since June 2007, nearly 3.4 million homeowners have saved their homes via permanent loan modifications.

Other June 2010 highlights:

• Foreclosure Starts decreased from 205,479 in May to 191,764 in June, a decrease of 7%.

• Complete Foreclosure Sales decreased from 98,963 in May to 90,350 in June, a decrease of 9%.

• Proprietary loan modifications completed increased from 112,088 in May to 123,150 in June, an increase of 10%.

• Principal and interest reduction modifications completed increased from 86,908 in May to 98,336 in June, an increase of 13%.

• Other retention plans completed increased from 74,004 in May to 83,222 in June, an increase of 12%.

While these statistics show progress is being made in avoiding Phoenix foreclosures AZ, the expiration of the Bush Tax Cuts at the end of 2010 is going to make it more difficult for people to pay for basic expenses and will slow job growth.

Contact your Congressmen and demand they extend Tax Cuts until our economy is back on track and growing again!

All Arizona school districts are seeing lower school achievement levels as a result of tougher test standards. Chandler, Gilbert and Mesa school districts are among the most successful and even they have seen schools achievement levels downgraded.

Check out the achievement level of your local Arizona schools in Maricopa and Pinal Counties with “Excelling” as the highest school achievement level followed by “Highly Performing”, “Performing Plus”, “Performing”, “Under Performing” down to the lowest level of “Failed to Meet Academic Standards”.

Chandler homes, Gilbert homes and Mesa homes located in excelling Chandler, Gilbert and Mesa school districts are in high demand and buyers with school age children are willing to pay more to send them to top rated schools. They know a good education is extremely important to the future success of their children and the well being of our communities. Everyone needs to support our local Arizona schools!

CHANDLER, ARIZONA

Chandler School District 2008 – 2009 School Year had 27 Excelling and 5 Highly Performing Chandler schools.
Chandler School District 2009 – 2010 School Year has 23 Excelling and 8 Highly Performing Chandler schools.

GILBERT, ARIZONA

Gilbert School District 2008 – 2009 School Year had 33 Excelling and 6 Highly Performing Gilbert schools.
Gilbert School District 2009 – 2010 School Year has 17 Excelling and 12 Highly Performing Gilbert schools.

MESA, ARIZONA

Mesa School District 2008 – 2009 School Year had 28 Excelling and 18 Highly Performing Mesa schools.
Mesa School District 2009 – 2010 School Year has 21 Excelling and 21 Highly Performing Mesa schools.

Support our Chandler Schools, Gilbert Schools and Mesa Schools

Sam Elam, Associate Broker with Prudential Arizona Properties, (480) 213-1799 has 20 years of experience and in-depth Phoenix real estate market knowledge to help buyers find Chandler homes, Gilbert homes AZ and Mesa homes for sale AZ served by top rated schools!

The number of sales and the average sales price of homes in Scottsdale and Mesa homes for sale AZ are up and the number of days on market to sell are down as compared to a year ago June 2009 and as compared to a month ago May 2010! Even more impressive — these STATS apply to both detached and attached property types in both communities!

Also on the honor roll of high performing real estate markets are Phoenix, Tempe, Gilbert and Chandler homes for sale AZ – all reporting the average Single Family home sales price is also up!

In spite of the end to the First Time and Long Time home buyers Tax Credit, buyer demand remains strong with the number of sales exceeding sales during May 2010 – keeping the available inventory of homes for sale low.

Mortgage rates are under 5% and prices are 50% below where they were at the peak in 2006. Fence sitters are going to miss out on a terrific home buying opportunity if they continue to wait. The Phoenix real estate market bottomed out last spring. High buyer demand and low inventory levels are going to push prices higher than they are now. Don’t miss out!

For all the details about the real estate market in your favorite area, go to Phoenix real estate market conditions.

Sam Elam, Associate Broker, ABR, CRS, GRI, e-PRO, SFR, Prudential Arizona Properties (480) 213-1799

The FHA program is run by the Federal Housing Administration and is targeted at those who may not have the credit scores or down payment amount necessary to qualify for traditional loan programs. With an FHA loan, you can expect competitive interest rates coupled with relaxed credit standards, which means that even a buyer with some a less than stellar credit history can qualify for a low interest rate. What’s more, the FHA’s low down payment option means that you’ll only need 3.5% of the purchase price instead of the traditional 20% to put down at closing, and the remainder of your closing costs can be rolled into the loan and/or paid by the seller.

The main qualification to participate in the FHA program is that you’re a Phoenix first time home buyer who is buying his or her primary residence (not investment property). The FHA loan program provides loans for both single family and multi-family dwellings and is available across the US, making it a compelling option to other loans for first time buyers. There is a maximum amount that borrowers can receive from an FHA loan, but these limits are very generous and vary from area to area, according to the cost of living in that area.
To find out more, speak with your lender or visit the FHA’s website at www.fha.gov

Contact Sam Elam with 20 years of real estate expertise to help you get into a Phoenix home in Chandler, Gilbert, Mesa, Scottsdale or Queen Creek!
Associate Broker, Prudential Arizona Properties, (480) 213-1799

Contact Sam Elam, Associate Broker with Prudential Arizona Properties for more information or visit http://www.SamElam.com

Fannie Mae extends their home buyer assistance incentive program of paying home buyer closing costs up to 3.5% of the sales price through June 30, 2010 when you buy one of their foreclosed Phoenix homes. Fannie Mae Closing Cost Assistance and Appliance Incentive is extended through June 30, 2010 to coincide with the expiration of the $8000 First Time and $6500 Existing Home Buyer Tax Credit Program. Even if you do not qualify for the Tax Incentive program you can get your home buyer closing costs paid when you buy a Fannie Mae foreclosed Phoenix home.

Foreclosure home buyers are given the option to use the 3.5% closing cost incentive to pay closing costs and purchase new Whirlpool appliances at the discretion of the home buyers.

Eligibility requirements include:

1- Foreclosed property sale must close on or before June 30, 2010
2- Buyer must be an owner-occupant (second homes are eligible as long as they are owner-occupied) — but investors are excluded.

The incentive reinforces Fannie Mae’s commitment to stabilizing communities and assisting buyers purchase a foreclosed Phoenix home. For more information about this incentive, visit HomePath.com, read the press release or contact a Fannie Mae listing broker.

Contact Sam Elam with Prudential Arizona Properties to help you purchase one of the foreclosed homes in Chandler, Gilbert, Mesa, Phoenix, Scottsdale, Tempe or Queen Creek and have Fannie Mae pay much, if not all, of your closing costs before this program expires!

Arizona Regional MLS (ARMLS) data shows March 2010 Phoenix Homes Sales of 8969 properties is a 39% increase over February 2010 sales numbers and a 19% increase over sales a year ago during March 2009! We’re not “out of the woods” yet, but indicators point to an improving Phoenix real estate market.

OTHER GOOD NEWS

The number of Traditional (non-distressed) Sales of Phoenix homes matched the number of sales of REO or Foreclosed Phoenix homes with each representing 40% of March sales. Short sales lagged at 20% of Sales.

This indicates buyers are looking for homes that are a very good value and are salable – as the tax credit deadline of April 30, 2010 deadline to have the property in escrow rapidly approaches.

Phoenix Average and Median Home Sales Prices increased slightly and remain above where they were when the Phoenix real estate market bottomed out in the Spring of 2009.

Builders continue to build new homes since buyers are willing to pay a substantial premium to purchase a brand new home. As a result, the number of actively selling new home subdivisions reversed direction and have increased modestly and so have the number of Spec homes being built in anticipation of buyer purchases.

WHAT CAN WE EXPECT?

If the jobs market stabilizes and starts to improve, buyer demand for homes remains strong after the tax incentives expire this month, interest rates remain low since the government stopped buying mortgage backed securities in March, lenders don’t saturate our resale market with foreclosed REO properties, and Freddie Mac/Fannie Mae and responsible banks continue to rehab foreclosed homes before putting them up for sale, we should continue to see an improving Phoenix real estate market. That’s a lot of “ifs”. We’ll just have to wait and see what happens next month. Stay tuned!

Sam Elam, ABR, CRS, GRI, e-PRO, Associate Broker, Prudential Arizona Properties http://www.SamElam.com

The  Arizona Short Sale Seller Advisory lists ”red flags” to help you identify predatory “Rescue” Scams and Short Sale Fraud, links to HUD approved counselors, a FREE Arizona hotline number, sources of FREE or low cost legal and tax advice, identifies alternatives to a foreclosure, tells you how to communicate with your lender(s) and provides links to Arizona short sale disclosures your REALTOR will use in the Short Sale transaction to protect and inform you about a short sale in the event you, your tax advisor and your attorney decide this is your best course of action. If you don’t have one, they are available to advise you for little or no cost.

Sam Elam, Associate Broker with Prudential Arizona Properties is a Certified Short Sale and Foreclosure Resource and offers additional distressed homeowner resources  that go into greater detail and lists several other government help programs. Sam can refer you to Tax Attorneys (pro bono – that’s FREE) to evaluate your potential tax liabilities as a result of a foreclosure, bankruptcy, short sale, etc.

If you can’t pay your mortgage or know you will soon be unable to, seek help as soon as possible. Don’t go through your savings and/or walk away from your home without talking with your Lender(s). And don’t make any decisions without first seeking legal and tax advice to understand the consequences of your decisions. The decision you make today may have long term consequences.

The Arizona Seller Short Sale Advisory provides a list of attorneys who can help or call Sam Elam for attorney referrals at (480) 213-1799. I am here to help when you need assistance.

FHA is qualifying buyers based upon their FICO score to the extent that those with a FICO score below 580 are eligible for a 90% LTV loan with the minimum down payment increased from 3.5% to 10%. Read the new FHA Loan Policy for more details.

These policy changes show the U.S. government is no longer willing to make what they perceive to be higher risk loans at very favorable loan terms. With the rampant loan defaults and huge amount of government deficit spending, loan interest rates will eventually rise.

Those buyers waiting for the opportune time to buy have already missed their chance. The Phoenix real estate market bottomed out in March/April 2009 and average prices of Chandler, Gilbert, Mesa, Scottsdale and Phoenix homes have gone up since.

If you continue to wait, you may be priced out of the market as higher loan costs and mortgage interest rates rise. Buy now to lock in a fixed rate loan that are historically very low levels and to take advantage of the First Time and Repeat Home Buyer tax credit (Up to $8000 and $6500, respectively) by contracting by April 30 and closing by June 30.  This primer at  explains New Home and Existing Home tax credits and how you can take advantage of them. Hurry before they expire. Call Sam Elam for assistance with your next home purchase.

For assistance with the purchase of one of our homes in Chandler, Phoenix, Scottsdale, Gilbert, Mesa or Tempe contact:

Sam Elam, Associate Broker, Prudential Arizona Properties, (480) 213-1799 or SamElam3@gmail.com

Additional buyer resource information and MLS access visit: Phoenix homes for sale – Phoenix real estate & investments

Sales are up

December 2009 sales are up 2% over November 2009 and up 39% over December 2008. The number of Phoenix real estate transactions rebounded back close to what they were before the downturn. In fact 2009 sales exceeded 2008 sales by 55%!

Prices of Phoenix homes for sale are down

Unfortunately the increase in the number of transactions has come at the expense of sales price. Our median sales price is off 52% from the peak median price of $264,800 in June 2006. Prices have been sliding since, but bottomed out in April 2009 at $115,500 and closed the year at $126,000.

Our December average sales price increased to $177,572, because more high-end REO homes sold. At this point our average and median sales price are back to where they were in February/March 2001. We have bargains galore!

Of the homes that SOLD in December 2009:

23% were Short Sales

34% were Traditional, Non-distressed Sales

43% were Bank Owned or REO Sales

50% of our Active inventory is Traditional listings

50% of our Active inventory is either Short Sale or REO listings

As a ratio of Active listings of  homes in Phoenix by listing type to December Sales:

12.5% of the Short Sale inventory sold with Short Sales being 36% of Active inventory

13 % of the Traditional inventory sold with Traditionals being 50% of Active inventory

58% of the Bank Owned/REO inventory sold with REOs being 14% of Active inventory

There are not as many REO listings as one might expect, but banks price them to sell quickly!

Also noteworthy, there are more Traditional (non-distressed) sales closing escrow than Short Sales.

We see owners of non-distressed properties can sell their home. Buyers will pay premium prices for Phoenix homes that are saleable (don’t require approval to sell), in good condition (with all repairs done before it is listed for sale), staged properly (cleaned, de-cluttered and painted as needed) and easy to show on a moment’s notice (dishes washed, beds made, trash out, clothes in the washing machine and tidy).

I am cautiously optimistic the Phoenix real estate market has “turned the corner”.  My expectation is our market will continue to improve, but we’ll see minor ups and downs in trends during 2010.

Check out market statistics for Arizona condos and homes in Phoenix, Scottsdale, Chandler, Gilbert, Mesa and Tempe for sale at http://bit.ly/4qpcHJ. Real estate is local and the breakdown by city will be helpful.

Author:

Sam Elam, Associate Broker, Prudential Arizona Properties, Gilbert, AZ  (480) 213-1799

SamElam3@gmail.com    http://www.SamElam.com