New Policies = Consequences for "Strategic Defaulters"

I just came across this bit of information that I thought was very interesting regarding foreclosures. Apparently, those that just "walk away" from assets that are backed by Fannie Mae loans may face stiffer financing guidelines in the future, and could potentially face collections.

These penalties would be for those who are in a financial position to pay but who choose not to. Or for those who did not, in good faith, attempt to work out an alternative with their lenders. This practice has been coined "strategic defaulting". The consequences for strategic defaulters would be ineligibility to obtain FNMA financing for 7 years (currently the waiting period after default is 2-3 years depending on circumstances).

In addition, Fannie Mae will implement legal action to recover defaulted amounts via deficiency judgements against the borrower, in states where it is legal to do so. (AZ does allow deficiency judgments of some types of properties)

A borrower who is unable to pay their mortgage should attempt to work with their loan company to work out an alternative such as a short sale, deed in lieu, or a loan modification.

See the full new release here

A Game of Interest Rate Limbo... How Low Can They Go!!

I can honestly say that after 11 years in real estate, I have not yet mastered how or why interest rates are affected. What I haver learned is that when the Feds say the economy is bad it is good news for mortgage interest rates. I was stunned today when I discovered that a 30 year fixed rate is right around 4.5% and a 15 year fixed rate is at about 3.75%. Wow!! I cannot recall seeing FIXED rates this low in my time in real estate.

I did a quick google search and voila, it's true! It seems that the Federal Reserve Chairman, Mr. Ben Bernake, gave an not so positive review of the U.S Economy to Congress which immediately affected stocks, bonds and yields which ultimately drive interest rates. Again, I don't know the "science" behind it all, but I know a low interest rate!

If you are one of the very lucky ones who has some equity in your home, what a time it is to investigate a refinance. And for those of you who have been considering purchasing, super low prices coupled with a phenomonal interest rate equals a beautiful thing!!

An interesting (and promising) observation!

For those of you who don't already know, I drive ALOT!! On a normal day I can rack up 100 miles quite easily. On my sweeps back and forth and across the west valley, I've noticed that a huge number of developments that had begun to look like abandoned ghost towns have new life in them. I've also been getting a surge of emails from home builders offering pricing sheets and incentives for their homes. I cannot even remember the last time I've been a a model home, but I'm glad to see that pulse of new home building is beginning to beat again.

For existing home owners this means that vacant lots that surround their homes may soon have be occupied with a neighbor, and as a result help stablize values and build equity. For Buyers, it means an alternative to short sales and REO's....provided that the builders attempt to be competitive with their pricing.

Just thought I'd share this interesting (and promising) observation!!

Great Tax Credit News for Vets!!

Wow...what a crazy Monday it's been today! Lots of things to do, and way to few hours to accomplish them it seems. Oh well, I work best under pressure :) In all the mayhem today I received this bit of news regarding military veterans that that I think is phenomonal. If you or someone you know is in the service please let them know! This is great!

THE HOME BUYER TAX CREDIT HAS BEEN EXTENDED TO 2011 FOR MILITARY!

In a nutshell, if you are in the military or are a certain government employee you can still qualify for a tax credit, up to $8000, even if you are not a first time home buyer.

Who qualifies? Member or spouse of "uniformed services" or US foreign service.

** If you sold a home because of "orders" between 1/1/2009 and 4/30/2010 and served 91 days of extended duty and you meet income, sales price, and age (18) requirements, you are eligible for the tax credit. You need to sign a contract by 4/30/2011 and close on your home by 6/30/2011.

** You must have served Extended Duty for 91 days between 1/1/2009 and 4/30/2010 outside the US or inside the US and had to relocate a minimum of 50 miles from your primary residence.

Finally on the blog bus!!!

I've thought about blogging for a very long time, and I am excited to finally have my official blog up and running. At this very early stage I'm not certain how the it will manifest itself. What I am sure of, however, is that this platform will allow me to share information and news about our ever changing Arizona real estate market. Whether you are a friend, colleague, client, or even a fellow real estate agent, I hope to bring you something meaningful.