MORTGAGE RATES FALL - PRICES STABLE

Bankrate.com reports "The benchmark mortgage rate has fallen in five of the last six weeks, and home prices fell less than 1 %." Their article follows:

http://bankrate.com/brm/news/mtga/Aug3007_mortgage_analysisa1.asp

Meanwhile, The National Association of Realtors® reports that existing home sales are stable .....with increases of 1.8% in the West! The full article is worth the read:

http://www.realtor.org/press_room/news_releases/2007/ehs_july07_home_sales_stable.html

With all the hype regarding sub prime lenders in the media, the summer market was badly damaged. The unfortunate thing is that Buyers with a 700 FICO score, and 20% down, loans are available on a "stated income" basis. FHA loans are likely to come back into fashion with only 3% down with good credit history. There are even loans for folks with less than perfect credit where the down payment and closing costs are paid by a gift grant!

Now is an excellent time to seriously consider Buying. Give me a call so we can review the many valid loan options available and home prices are down!

HOME PRICES DOWN IN JUNE - SO?

An August 29 Realty Times article by Blanche Evans. Blanche Evans is the award-winning editor of Realty Times, the Internet's largest independent real estate news service, where she oversees the nation's leading real estate writers and columnists. Blanche has been named one of the "25 Most Influential People In Real Estate" by REALTOR Magazine, recognized as one of nine "Notables," and was named "Top Reporter Covering the NAR."

The title "Panic Working Like A Charm; Home Prices Mostly Down In June" doesn't due justice to the detail of Blanches article. Please take the time to read.

http://realtytimes.com/rtapages/20070829_paniccharm.htm

And a safe and pleasant Labor Day Weekend to you all.

HOW BOUT THOSE LOAN COMPANIES?

This is not a healthy indication of where the loan industry is headed:

"FIRST MAGNUS HALTS LOANS

By Jack Gillum, Christie Smythe and David Wichner
ARIZONA DAILY STAR
Tucson, Arizona Published: 08.16.2007


First Magnus Financial Corp., a mortgage lender that is one of Tucson's only locally based national firms and one of the area's major employers, is no longer writing loans as of this morning.

An e-mail Wednesday evening told branch managers of Great Southwest Mortgage, the retail arm of First Magnus, that the parent company was no longer funding loans. First Magnus is reporting 800 full-time-equivalent local employees.

"We will not be funding loans tomorrow," wrote Erik Lutz, the president and founder of Great Southwest. "

Many of the smaller lenders will be hit hard. Even Countrywide is struggling but given its size will likely come through the mess.

One prediction to consider: Are we about to return to the days when Sellers carried a note on the sale of their homes. It would help the entry level buyers now that the sub-prime market is either going away or tightening up to tight for most buyers. Time will tell - how bad do the Sellers want to sell?

FHA MORTGAGES UP IN 2007

The FHA mortgages of years past seemed out of date with all the new, clever, zero-down, ARM, and Interest Only products. Now a renewed vigor has entered the marketplace as folks shy away from many of the sparkly new approachs after watching the sub-prime lending market slowly disolve into non-existence.

Here is an article that highlights the features and requirements to use FHA to purchase your home.

FHA Mortgages Up

To use this 30 year, fixed rate option, you do need to have good credit and 3% down, but you do get protected against the very things that are causing your neighbors to abandon their dream homes.

Check both FHA and non-FHA loans to see which will best fit your particular needs.

FORECLOSURE HELP

Foreclosures are on the rise! Definitely not news to those facing an increase on an Adjustable Rate Mortgage, facing an Interest Only balloon, in a zero down loan or are just in over their head and can't make the payments.

There are "Housing Advocacy Groups .... many people were put into high interest loans when they would have qualified for less-expensive mortgages." (The Arizona Republic dated Sunday, August 5, 2007).

There may be unscrupulous people out there, ready to take advantage of your financial problems, but there are also Advocacy Groups that would legitimately like to help.

A National organization called ACORN addresses many of the issues of Social Justice including foreclosures.

Cick here for ACORN

Neighborhood Housing Services of Phoenix has a hotline at 1-888-995-HOPE to offer free counseling. There may be similar groups nationwide.

Some lenders are receptive to working with their customers - if lenders have too many bad loans on their books, they can no longer get money to loan! There is an incentive for them to work with you. A phone call is cheap! At least ask!

The situation is only going to get worse in late 2007 and early 2008 when many mortgage adjustments come due. If you are facing an adjustment or see trouble ahead, act now before you face the pressure of deadlines to address an alternative to losing your home.

Give me a call if you want an honest opinion of what your Phoenix area home is now worth and possible suggestions on how to best proceed.

We're with you!

PHOENIX AREA SALES

The Arizona State University maintains a very active Realty Studies Group.

As stated on their web page, "Since 1980, the primary objectives of ASU's Realty Studies have been to serve as a focal point for research and educational projects of faculty members, both in real estate and in allied disciplines throughout Arizona; to analyze and evaluate the Arizona real estate market on behalf of private, public, and governmental organizations; to conduct studies related to real estate, and to publish the results of those studies; and to assist in the development of real estate educational programs throughout Arizona that will enhance the professionalism and knowledge of those involved in the real estate industry."

They are highly regarded by the Arizona Real Estate Community, with Mr. Jay Butler the acknowledged spokesman for the organization.

Subsections of the report at the web site include historical data on Sales Activity, Affordability Indices, Construction Activity, Office Activity, Retail Activity, Greater Phoenix Indicators and Maps.

Individual cites, 26 Phoenix Communities in all , including the East Valley Cities of Chandler, Gilbert, Tempe, Scottsdale, Queen Creek, Higley, Mesa appear in the Sales and Median history data.

The ASU Realty Studies Web Site begins here. We recommend you save the web site in your Favorites file.

URINE TEST

Now there's a subject that you wouldn't expect!

Like a lot of folks in this state, I have a job. I work, they pay me. I pay my taxes and the government distributes my taxes as it sees fit. In order to get a paycheck, many folks are required to pass a random urine test with which I have no problem.

What I do have a problem with is the distribution of my, and your, taxes to people who don't have to pass a urine test. Shouldn't one have to pass a urine test to get a welfare check because I have to pass one to earn it for them? Please understand, I have no problem with helping people get back on their feet. I do on the other hand have a problem with helping someone sitting on their ass, doing drugs, while I work. Can you imagine how much money the state would save if people had to pass a urine test to get a public assistance check?

Just had to get that off my chest.