Some Banks Ignore Arizona Anti-Deficiency Laws
Arizona anti-deficiency laws limit the homeowners liability in the event of loan default to the amount the lender can recover at at trustee sale or judicial sale providing the real property is 1) on a 2.5 acre or smaller lot, 2) restricted to and utilized for a single-family or dual- family dwelling and the 3) proceeds of the purchase loan (or a subsequent refinance loan) used to pay all or part of the purchase price of the property (better that all of it was). However, some lenders are forcing sellers to take back a personal note in favor of the lender as an inducement for the lender to cooperate in a short sale.
J. Robert Eckley, a prominent Arizona real estate and banking attorney, argues in Counselor’s Corner – Unlawful Acts of Banksthat some banks ignore the Arizona anti-deficiency protection during their negotiations with the seller, who is requesting the bank accept less than the balance owed on the loan and release the lien so the home can be sold in a “short sale”. Some sellers have refused to accept these terms and let their Phoenix property to be foreclosed to avoid any additional financial obligations. Other sellers, who were not made aware of the limitations of the bank to request a personal note, agreed to accept a personal note for all or a portion of the shortfall in the amount the lender received at the time of the short sale closing.
Sellers with limited assets and income at the time of the short sale have been told they may be subject to a deficiency judgment lien for a period of six years from the date of the Phoenix short sale or the banks may opt to sell off the right to recover against the defaulted loan to collection agencies. We’ll have to stay tuned for Mr. Eckley’s next addition of Counselor’s Corner to learn more about your rights and protections under the law.
My area of service and expertise is the Phoenix southeast valley including Chandler homes AZ, Mesa homes AZ, Queen Creek, Tempe and Gilbert AZ homes for sale. If you find you are unable to make your house payments or won’t be able to in the future, call me. I will send you the Arizona Seller Short Sale Advisory and Disclosure and recommend local attorneys who know Arizona law to explain your options and liabilities. If a Chandler, Gilbert, Mesa or Queen Creek short sale is your best option, I will list, market and get it sold for you so you can get on with your life and build for the future.
Sam Elam, Associate Broker with Prudential Arizona Properties, 480-213-1799
Sam Elam - Associate Broker specializing in Chandler, Gilbert, Mesa and Phoenix real estate and homes for sale AZ.
Nearly 1M Loan Modifications So Far in 2010
Nearly 1M Loan Modifications Means Nearly 1M Fewer Foreclosures!
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!
Sam Elam - Associate Broker specializing in Chandler, Gilbert, Mesa and Phoenix real estate and homes for sale AZ.Arizona School Achievement Results Posted
TOUGHER AIMS TEST STANDARDS CAUSE DROP IN ARIZONA SCHOOL ACHIEVEMENT LEVELS
All Arizona school districts are seeing lower school achievement levels as a result of tougher test standards for the 2010 – 2011 school year. Chandler, Gilbert and Mesa school districts are among the most successful and even they have seen schools achievement levels downgraded. But Chandler, Gilbert and Mesa schools were are to increase the total number of Excelling and Highly Performing schools – albeit with fewer Excelling (with a Grade of A) and more Highly Performing (with a Grade of B as the letter grade for Above Average Schools).
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 – 27 Excelling and 5 Highly Performing schools.
Chandler School District 2009 – 2010 School Year – 23 Excelling and 8 Highly Performing schools.
Chandler School District 2010 – 2011 School Year – 19 Excelling and 10 Highly Performing schools
GILBERT, ARIZONA
Gilbert School District 2008 – 2009 School Year – 33 Excelling and 6 Highly Performing schools.
Gilbert School District 2009 – 2010 School Year – 17 Excelling and 12 Highly Performing schools.
Gilbert School District 2010 – 2011 School Year – 7 Excelling and 27 Highly Performing schools.
MESA, ARIZONA
Mesa School District 2008 – 2009 School Year – 28 Excelling and 18 Highly Performing schools.
Mesa School District 2009 – 2010 School Year – 21 Excelling and 21 Highly Performing schools.
Mesa School District 2010 – 2011 School Year – 18 Excelling and 34 Highly Performing 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!
Sam Elam - Associate Broker specializing in Chandler, Gilbert, Mesa and Phoenix real estate and homes for sale AZ.Metro Phoenix Real Estate Market Is Looking Up!
June 2010 results are now available for homes in Phoenix for sale and closed sales. As compared to May 2010, the average sales price of Single Family Detached homes is up 10% to $203,417, median sales price is up 6%, days on market are down 3% to 79 days and homes are selling for 98% of list!
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
Sam Elam - Associate Broker specializing in Chandler, Gilbert, Mesa and Phoenix real estate and homes for sale AZ.DENIED A HOME LOAN? IT’S EASIER TO GET FHA LOAN APPROVAL!
The economy is still recovering from its troubling decline in recent years, and as it recovers, Phoenix and national housing prices are beginning to slowly rise again. If you’re thinking about becoming a homeowner, now is a perfect time to do it. If, however, you’ve also been affected by the recent downturn, you may be a bit concerned with your initial financial obligations that come with a mortgage. An FHA loan can often be the best choice in these situations, with low interest rates and reduced credit requirements which can allow many potential buyers, who otherwise may not qualify for a loan, to become homeowners.
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
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