East Valley Market Conditions

Enclosed is a mid-month (9-19-07) snapshot of the Southeast Phoenix Valley provided courtesy of First American Title.

FIRST AMERICAN TITLE DATA

The monthly report from MLS data that is on my web page will be updated in early October.

Possible Help For Homebuyers with Rates Ready to Reset

A recent article from Realty Times offer some stress relief to those facing rate resets:

Lower Rates Help Homebuyers with Rates Ready to Reset


This was posted BEFORE this weeks interest rate reductions by the FOMC and Bernake's comments.

A related article from Bankrate.com reviews FHA's plans to help some borrowers:

FHA saddles up to help delinquent borrowers

The article states "About 60,000 "delinquent-yet-creditworthy" mortgage borrowers will be able to refinance into FHA-insured home loans in the next year or so,...."

Let's hope it really helps.

TAX IMPACT ON FORECLOSURES & SHORT SALES

The Internal Revenue Service has provided guidance in a publication dealing with Foreclosures and Short Sales:


IRS PUBLICATION

Having read the article, I suggest you contact a competent CPA to review your personal circumstances. The issue of insolvency appears to be the key to whether you will face tax consequences.

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.