To be eligable for a short sale on your home, you MUST be able to show the bank a hardship.  These might include loss of a job, substancial loss of income, large involuntary increase in expenses (such as major unexpected medical expenses) are the most common causes of a hardship.  In other words, you need to become “unqualified” for your mortgage.  Each bank determines hardship on a case by case basis.

I explained all this to my family member.  He said that his in-law had a huge drop in income, which in and of itself does not create a hardship.  It depends on what her expenses are.  They are not behind on their mortgage payments at this time, but has been advised to stop making payments.  I would NEVER advise that a homeowner just stop making payments.  There are other steps you can take.  She has also been advised to just move and walk away from her home.  NEVER would I advise this either!  There are other steps you can take.

I told my family member to have his in-law call me and I would refer a CDPE (Certified Distressed property Expert) agent to them in their area. 

Your home is probably the most valuable investment you have.  It is important to trust your asset to someone who knows what they are doing.   Your credit rating is just as valuable.  Your insurance rates are based on credit scores, your interest rates on your credit cards are based on credit scores.  Your ability to buy a car, buy a home, rent an apartment even changing jobs are all based on credit scores.  A forclosure on a credit report is worse than a bankruptcy.  It stays on your report for more than 7 years.  It follows you for a long time.  A short sale stays on your credit report, but in most cases only prevents you from purchasing a home for 2 years as long as everything else is paid on time.

This is why it is so important to entrust this investment to an agent who understands the process, the qualification standards and the best way to proceed for your circumstance.    

The latest statistics show that 1 out of 8 homeowners are either in default, or about to default on their home mortgage.  There is a very good chance that you or someone you know is experiencing a hardship.  Please let them know that there is help available.  In most cases, we can avoid foreclosure.   Sometimes, depending on circumstances, we can even find a way for you to keep your home. 

Give me a call.  If you, or someone you know, are out of state or out of my area, I can refer  a CDPE agent to you.  If you, or someone you know, are in my market area, I would love to help.    

Lynn Otlewski, CDPE

623.238.3875

lynn@valleyreadvisor.com

Do you think we follow our own advice?  Not up to this point.  But that is about to change:

Last week our home was broken into.  Thank goodness we weren’t home when it happened.  When Jay got home that afternoon, the first thing he noticed was that all the built in cabinets in the den were wide open.  Then he noticed that one of the back windows was also wide open.  His first thought was “why did Lynn leave all this open?” because we have never been one of those families that worried about break-ins.  Then the window being wide open with no screen hit him…  Someone else had been in our house.  He called the police right away.

The next thing he worried about was whether or not our cats had gotten out.  They are indoor cats, and behave more like dogs in that they always greet us at the door when we come in.  Where were they?  He did find them hiding under the bed in the guest room.  They were truly traumatized.  Then he went into our bedroom and walked into a huge mess.  All the dresser and nightstand drawers were emptied onto the floor.  Our dressing area cabinets and drawers were ransacked, the closet as well.  All our jewelry was gone.  Every last piece.  The only thing that was left was what we were wearing that day.  All the little things that had been given as gifts to one another over the last 21 years was gone.  The gold chain that had been my mother’s was gone.  All things that you could never truly replace with an insurance check was just plain gone.

So the next step was to take an inventory as best as I could of all the things that were missing based on memory along with their value at time of purchase for the police report.  I came up with a list of the jewelry which i know didn’t include everything because even as I write this I am remembering things that i hadn’t included.  I was shocked when I added it all up.  The jewelry alone came to well over $15k and that wasn’t in replacement value.  When we looked up our insurance policy to see what kind of coverage we had, we were covered for $2,500 for jewelry.  What?  You’ve got to be kidding!  It is devastating enough to have your privacy invaded in such a manner, but then not to have coverage enough to take care of the loss, adds insult to injury.

So, the first thing I am telling people is:  Take an inventory of all your jewelry.  We didn’t have any one or two big expensive pieces, but we did have a lot of little inexpensive fine jewelry pieces.  It adds up much quicker than you might think.  So take the inventory, check your insurance policy and make sure you have enough coverage for your jewelry.  Next look at your policy to see if you are covered for other personal property that may be used for business.  For example, my laptop, bag, calculator that was in the bag, images that I had purchased for use on postcards and websites that were on the laptop, are all considered business use.  We have a cap of $1,000 for that.  So we will take a slight loss on those items as well.

If you do not have an alarm system, get one!  If you have windows in your garage, install the film that makes it like frosted glass that you cannot see inside.  If you don’t have window treatments to keep people from seeing inside get them.  If you don’t have a fence that you can lock to keep people from entering your back yard, install one.  If you are using a fireproof strongbox for all your important papers, don’t bother, they will just walk out with it.  Get a safe deposit box.  Not only will you not remember everything you had in there, it will cost you money to replace the contents. 

So, overall, do your due diligence now, instead of later.  And please STAY SAFE!

Lynn Otlewski

While its passage remains uncertain, the agreement would extend the existing credit for first-time homebuyers, worth up to $8,000, while offering a new credit of up to $6,500 for some existing homeowners, Senate aides said. The reduced credit would be available to all homebuyers who have been in their current residence for a consecutive five-year period in the past eight years. Lawmakers in Washington also raised the qualifying income limits to $125,000 for single taxpayers and $250,000 for joint taxpayers, from the current $75,000 and $150,000, housing-industry sources said. Under the Senate compromise, buyers must have sales agreements in hand by April 30, but they will have until June 30 to go to settlement, said the sources. The measure still faces votes in the full Senate and the House.

Treasury Secretary Tim Geithner and HUD Secretary Shaun Donovan are in full support of the Senate’s proposal to both extend and expand the first-time homebuyer tax credit and called on Congress to approve key housing measures that include the tax credit. “We welcome efforts taken by Congress to extend the First-Time Homebuyer Tax Credit for a limited period. This credit has brought new families into the housing market and contributed to three consecutive months of rising home prices nationwide,” said Secretaries Geithner and Donovan. “In extending the credit, we urge Congress to include strict measures to combat tax fraud and protect responsible homeowners.”

The current tax credit did little for the new-home market in September, the Commerce Department recently reported—news that took many industry analysts by surprise. Sales fell 3.6% from August and 7.8% from September 2008. Industry observers had expected a fifth consecutive monthly increase in new-home sales, believing that the tax incentive for qualified first-time buyers—credited with 357,000 sales of previously owned homes so far this year—would do the trick. Instead, sales of typically more expensive newly built houses slipped. “The decline in new-home sales seems to us to be more a function of the attractive pricing available on resales in the current environment than a reflection of weakening demand,” said Michael Feder, president of Radar Logic in New York, which tracks the market.

“Since hitting rock bottom in March, demand is up 20 percent,” said Joel L. Naroff of Naroff Economic Advisers in Holland, Pa. For Naroff, the robust rise in existing-home purchases—9.2% year over year in September—indicated that the housing market was not faltering. “Maybe the issue is supply, which fell to its lowest level in 27 years,” he said. “Builders, at least those left standing, have been making sure they don’t have any houses sitting around, and they have been very successful in controlling inventories.”

IHS Global Insight economist Patrick Newport echoed that, noting new-home inventories “sank for the 29th straight month to their lowest level since November 1982.” Naroff maintained housing has recovered enough to stand without the tax credit, but Newport said that if the credit were not extended and expanded, housing demand would take a hit, and home sales would drop.

The new provisions are aimed at broadening availability of the credit beyond first-time buyers and giving the weakened real estate market a bigger boost while preventing real estate investors from benefitting. While Senate lawmakers appear to have reached a deal on the substance of the tax credit, they are still at odds over how it would be brought to the Senate floor.
(c) 2009, The Philadelphia Inquirer.

Distributed by McClatchy-Tribune Information Services.

For more information, visit www.wsj.com.

~~~~~~~~~~~~~~~~~~~~~~~

We’ve all heard the old adage “you never get a second chance to make a first impression.” This is especially true when it comes to your home. If you’re thinking about selling, there’s no more important audience to attract than potential buyers, who are highly influenced by how a home looks the first time they get a glimpse of it. Even if your goal is just to impress your neighbors and guests you should pay close attention to the first impression your home in making. Here are a few simple tips and techniques that can positively affect your home’s “curb appeal” and perhaps even its value.

Clean Up and Repair:
The most useful chores to tackle first are basic maintenance and repairs before moving onto larger projects. Clean windows and siding, make sure outdoor lights are working, stow away yard tools and equipment, and clean up dead branches and leaves. Make sure that fences, walkways, and the driveway are in good repair too - a home that looks well taken care of is always more attractive to buyers.

Landscaping:
A full landscape overhaul may not be necessary, but your yard, especially in the front, should look neat and well maintained. Trim any overgrown shrubs, remove weeds, and tidy up planting areas. If the season is right, add some colorful flowering plants to brighten up areas around walkways and the front entrance. It’s an easy and inexpensive way to create an instantly welcoming feeling.

The Entrance:
The front door is another key element of that all-important first impression, and should reflect the style of the home. If replacement is cost-prohibitive, consider reviving a tired, faded door with a fresh coat of paint in a great accent color and swapping out the hardware.

Paint It New:
Brighten up the exterior of your home with a new paint job. Driving around your neighborhood may inspire some ideas of what may be flattering to your home. If you’re planning to sell your home, it’s usually best to go with colors that have widespread appeal so that potential buyers won’t be put off by unusual colors or combinations. Painting the exterior can add significantly to the home’s value.

Bill Rosser
Bill.Rosser@pillartopost.com
ptphome.com/northwestvalley
602-866-7678

Savannah Estate:

1) Laurel Lot 43: 2938 sq ft single story. 4 bedrooms 2.5 baths 3 car tandem 12,500 square foot lot with 12 foot gate for RV parking. $239,918* PLUS a package!

Coplen Estates:

1) Cimarron Lot 11: 3762 sq ft single story model home. 4 bedroom 3.5 bath. This home is breath taking with over $100,000 in upgrades on a lot that is about 18,000 square feet. $399,990* PLUS a package!

2) Extreme Lot 12: 5531 sq ft two story model home. 5 bedroom 4.5 bath. This home features almost $225,000 in upgrades. You will be awed by the time you step foot in the courtyard to when you view the grand rear yard on almost 18,000 square feet. $469,990* PLUS a package!

3) Crescendo Lot 1: 4448 sq ft two story home. 4 bedrooms, 3.5 baths and a loft. Enormous kitchen with a double island on almost an acre with incredible mountain views. This home features almost $178,000 in upgrades. $419,990* PLUS a package!

Legacy Canyon Trails:

1) Vintage Lot 20: 2450 sq ft single story home. 4 bedroom 2.5 bath with a den. Cherry Cabinets, gas appliances and 20” tile. $187,157* PLUS a package! Complete March 2010

You can also pick 1 of these 4 packages with their purchase!

Entertainment Package-
52” LCD TV with 4 year Warranty
Tivo System
Xbox 360
Blu Ray Player
Bracketing and Professional Installation after COE

Gourmet Kitchen Package- (New Builds Only)
Upgrade Appliances to Stainless Steel
Stainless Steel Fridge
1st Level of Upgrade Cherry Cabinets (i.e. recessed in the standard size)

Move In Ready Package-
Fridge
Washer
Dryer
2” White Faux Wood Blinds

Closing Cost/Rate Buy Down Package-
3% allocated toward closing costs or rate buy down

At one time earlier this year new construction was way above the sale prices of homes in the market but the builders that have survived are not competitive. If you’ve considered a purcahse you have several choices and new construction should be one of them. Feel free to contact me about your options at 623.271.4234 or visit www.ValleyREadvisor.com.

I have intensive training in the distressed property area.  In fact I have earned the CDPE Real Estate Designation.  The CDPE (Certified Distressed Property Expert) agent is well versed in helping homeowners who may be in danger of defaulting on their mortgage, or who have defaulted on their mortgage find the help they need.  In some cases, enabling them to stay in their home.  Some cases require a “short sale” which is where the bank will approve a sale for less than what is owed on the property.  This situation is much easier on the credit score than a foreclosure but is a very complicated process.  As a CDPE agent, I am very well versed in the process and what it takes to work with the bank on a short sale.

Please, if you know of anyone that is in this situation, have them contact me.  They may be surprised to learn that there are programs available that may help them:

1. stay in their home
2. avoid forclosure
3. save their credit score

Please pass along my contact information and ensure them that any information they share with me will be held in the strictest confidence.   Time is of the essence!  Waiting too long to take action could lead to a foreclosure which is the worst possible consequence of a hardship.

Lynn Otlewski, CDPE

623.238.3875

lynn@valleyreadvisor.com

My name is Lynn Otlewski and I have just joined Jay to form a new “team” in the real estate space.  First of all in the spirit of full disclosure, I am Jay’s other half.  We have been married for 20 years and have worked together off and on (mostly on) since the early 90’s when we both first started helping people make good decisions on the most important investment of their lives.  We were very successful teaming up in the Michigan market.  The last few years I was actively helping people fulfill their dreams in real estate I was a licensed Broker.

When we first moved here to Arizona, I wanted to take a little time out to get to know the area, the people, and what was most important to them.  So when Jay got back into the career that has truly been in our blood since day one, I knew I would most likely join him eventually.  Well, I am ready.  I have earned my Arizona real estate license, and have taken special classes that certify me as a distressed property expert.  I have earned my CDPE (Certified Distressed Property Expert) and am ready to help people, once again, make good decisions on the most important investments of their lives. 

I will have plenty of information to share from time to time, so watch for new posts with what I hope will be helpful information in the months to come.

If you know someone who needs to sell their home, is thinking of selling their home, or would simply like more informtion, please pass along my contact information below!

Thank you,

Lynn Otlewski  |  623.238.3875  |  lynn@valleyreadvisor.com

Just a quick note about homes for sale in Sun City festival. I’ve spent a couple of days out in that are showing homes and I have to say that Del Webb does it right. Check out more homes at http://www.Retiring2Az.com.

See and download the full gallery on posterous

Posted via email from valleyre’s posterous

“The pickup in home price growth rates is consistent with other housing market indicators that show home sales and single-family construction up in the second quarter,” said Frank Nothaft, Freddie Mac vice president and chief economist. “The lowest mortgage rates in a half-century have pushed housing affordability to the highest level in at least 40 years, helping to encourage buying. The spring is generally the strongest buying season each year, and we normally see home price growth respond similarly – this year was no exception. Moreover, the price gains were broad-based and for the first time in two years average home sales values rose at least a little bit in every region.

“Values are still down relative to their peaks, though. For example, as measured by the CMHPI, average values in the New England, East North Central and Pacific divisions are at 2004 levels, on average. In contrast, the average value in the West South Central area is only slightly below its 2008 peak, while the index for the East South Central region is at about its 2006 level. Other areas have home-purchase values at 2005 levels.”

The CMHPI Purchase-Only Series excludes all refinancings in its calculation. Freddie Mac also produces a CMHPI Classic Series that includes data from both home purchase transactions and mortgage refinancings, with the latter values based on appraisals. Generally, because appraisals are backwards looking through the use of recent comparable property transactions, the Classic Series will typically lag changes in the Purchase-Only series. The CMHPI Classic Series indicated that over the year ending with the second quarter, home values depreciated 4.5% in the U.S. measure, a steeper drop than the 3.9% decline over the year ending in the first quarter of 2009.

The CMHPI Purchase-Only Series had the following regional house-price changes:

Pacific Division (AK, CA, HI, OR, WA): jumped up 3.2% (13.4 percent, annualized) in the second quarter of 2009. Over the last 12 months, home values decreased 15.7%, and during the last five years, home values have decreased 5.1%.

West North Central Division (IA, KS, MN, MO, ND, NE, SD): increased 2.3% (9.7, annualized) in the second quarter of 2009. Over the last 12 months, home values decreased 2.4%; over the last five years, home values increased 6.1%.

East North Central Division (IL, IN, MI, OH, WI): rose 2.0% (8.4%, annualized) in the second quarter of 2009. Over the last 12 months, home values decreased 3.9%, and during the last five years, home values decreased 1.3%.

West South Central Division (AR, LA, OK, TX): grew 1.6% (6.5%, annualized) in the second quarter of 2009. Over the last 12 months, home values decreased 0.3%, and during the last five years, home values increased 21.2%.

East South Central Division (AL, KY, MS, TN): increased 1.6% (6.5%, annualized) in the second quarter of 2009. Over the last 12 months, home values decreased 2.9%, and during the last five years, home values increased 17.0%.

South Atlantic Division (DC, DE, FL, GA, MD, NC, SC, VA, WV): rose 1.4% (5.9%, annualized) in the second quarter of 2009. Over the last 12 months, home values decreased 7.9%, and during the last five years, home values increased 10.6 percent.

Mountain Division (AZ, CO, ID, MT, NM, NV, UT, WY): grew 0.7% (2.9%, annualized) in the second quarter of 2009. In the last 12 months, home values decreased 11.0%; during the last five years, home values increased 12.0 percent.

Middle Atlantic Division (NJ, NY, PA): increased 0.6% (2.6%, annualized) in the second quarter of 2009. Over the last 12 months, home values decreased 3.7%, and during the last five years, home values increased 18.0%.

New England Division (CT, MA, ME, NH, RI, VT): increased 0.5% (1.9%, annualized) in the second quarter of 2009. Over the last 12 months, home values decreased 3.2%, and during the last five years, home values increased 2.2%.

Unlike other home price indexes based on mean or median values of homes sold during a given period, the Conventional Mortgage Home Price Index is constructed, using regression techniques, from observations of actual sales prices or appraised values of the same homes over time.

For more information, visit www.freddiemac.com or you can contact me at 623.271.4234 and I would be happy to talk to you about specific communities.

But as interest in real estate auctions grows, bidders are finding out it pays to read the fine print, be prepared and realize that it’s best not to hire the movers until the deal, not the auction, is sealed. Not everyone who “wins” at an auction walks away with a new home.

Consider Cicero, Ill., resident Karina Castaneda, who happily left an auction in late June thinking she’d just purchased her first home. She had the winning bid on a four-bedroom, 2 1/2-bath town home at Enclave at Galewood Crossing on Chicago’s West Side. Her bid and the associated fees totaled about $120,000. She put up $5,000 of earnest money at the auction, signed the necessary documents and a few days later was e-mailed more forms to sign. Then she received a phone call from auctioneer Rick Levin & Associates that the developer, Red Seal Homes, was not accepting her bid. Confused, Castaneda said she called Red Seal and was offered a different unit for a price closer to $200,000. She declined and felt wronged.

But language in the contract gave the developer the ability to reject her bid, even though it was the highest bid. Now, Castaneda is back in the market for a home and hasn’t ruled out auctions, because of the price breaks they offer. “I figure, what are my chances that it will happen twice?” she said.

A recent auction of the former Chicago post office demonstrates the care that needs to be taken by bidders. Despite advertising that the building would be sold “absolute,” meaning to whoever made the highest bid, a potential bidder went to court to postpone the event, arguing that language in the contract was unclear and made it sound like the winning bid could be rejected. The auctioneer, Rick Levin & Associates, disagreed with the interpretation but agreed to remove the language, and the event proceeded as scheduled.

The use of auctions as a sales technique has been growing all year, and auction companies expect the late summer and fall to yield a bumper crop of events since foreclosure moratoriums have expired and home builders have grown more desperate to shrink their inventory.

As interest in auctions has grown, the industry is trying to better educate potential bidders about what it admits can be a complicated process, particularly during the heat of the moment at fast-paced events.

Auction companies are posting pictures of properties and open-house dates on their websites. Copies of an auction’s terms and conditions and the sales contract are usually available there too. Auctioneers also are trying to do more due diligence themselves, to help sellers appropriately price properties so they will sell, rather than the auctions just being used as a marketing tactic.

Bank foreclosures may provide the best opportunities for consumers, because lenders are anxious, said Paul Rogers, managing broker of Inland Real Estate Auctions, who thinks the uptick in auctions is only just beginning. “A lot of these banks were sitting on these bad deals and hoping these things were going to turn around, and now they realize the problems aren’t going to go away,” Rogers said. “They want to structure these deals so the properties and the problems go away.”

A concern about falling comparable prices also is prompting more developers, and the lenders who hold their loans, to consider selling their best homes at auction this fall before more distressed properties enter the auction system.

“People that sell now will do better than if they sell later,” said Michael Fine, executive vice president of Sheldon Good & Co. “As the better properties get sold now, the lesser properties will be left, and that will drag down comparisons.”

Tips for bidders
-First go to an auction as an observer to get a feel for the fast-paced process.
-Read the auction’s terms and conditions sheet and the contract, and consider showing it to an attorney before the auction. Most auction companies post the documents on their websites.
-If possible, inspect the property. Most are sold “as is.”
-Research the neighborhood and comparable sales so you don’t spend more than you should for a house.
-Bring what’s required if you are going to bid. Most auctions require bidders to put up a cashier’s check for a certain amount to show their true interest.

Types of auctions
Absolute: The highest bidder wins the auction, regardless of price. The same as an auction without reserve.
With reserve: An unpublished price the seller has set for the property. It can be different than the minimum bid. The seller can accept or decline a winning bid within a specified amount of time after the auction.
Subject to lender approval: A lender, who either owns a foreclosure or who has financed a developer, must agree to sell the home for the amount of the winning bid.

(c) 2009, Chicago Tribune.

Distributed by McClatchy-Tribune Information Services

Read more: http://rismedia.com/2009-09-03/real-estate-auctions-top-bid-doesnt-always-guarantee-sale/#ixzz0Q9T0kGXA