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More Homes Sold in Maricopa County in May 2009 than did in May 2005!

Monday, June 08, 2009

by The Jesse Herfel Group

The total number of Home Sales in MAY of 2009 in the Single Family Detached category in FlexMLS as compared to MAY 2005, 2006, 2007 and 2008:

May 2009 home sales Vs. May 2008, 2007, 2006, and 2005 (sales according to FlexMLS)
	May-09	May-08	May-07	May-06	May-05
Total Sales (Single Family Detached Homes)	8,338	4,830	4,659	6,181	8,025
Between the price range of $1 to $399,999	7,852 (94.1%)	4,117 (85%)	3,480 (75%)	4,671 (75.5%)	6,483 (80%)
Between the price range of $400,000 and above	486	713	1,179	1,510	1,542
REO sales and percentage of total sales	5,349 (64%)	1,505 (31%)	99 (2.1%)	10 (<1%)	19 (<1%)
Short Sales and Percentage of total sales	947 (11.45%)	0	0	0	0

*Numbers as of 6/4/09
	2009 previous months activity
	Jan-09	Feb-09	Mar-09	Apr-09
Total Sales (Single Family Detached Homes)	4,285	4,869	6,881	7,655
Between the price range of $1 to $399,999	3,989 (93%)	4,525 (93%)	6,504 (94.5%)	7,222 (94.3%)
Between the price range of $400,000 and above	296	344	377	433
REO sales and percentage of total sales	2,881 (67%)	3,278 (67%)	4,709 (68%)	5,108 (66.7%)
Short Sales and Percentage of total sales	396 (9.2%)	444 (9.1%)	690 (10%)	774 (10.1%)

The Percentages in the chart above refer to the percentage of total sales for the month. Example: in MAY 2009 homes priced under $399,999 represent 94.1% of the total sales in May 2009 (7,852 total sales).

As you can see things are selling at an astounding rate...this is very positive news!!! WE SOLD MORE HOMES IN MAY 2009 THAN WE DID IN MAY 2005!!! As of 6/04/09, there are an amazing 11,852 Single Family Homes PENDING!!! And a total of 13,277 total properties Pending in the MLS!

Have a Great Day!

From The Jesse Herfel Group

This information was provided by PlainsCapital Corporation

Homepath vs. 203K Loan Programs

Wednesday, April 15, 2009

by The Jesse Herfel Group

HomePath vs. 203k streamline...which is right for you?

There are many new loan programs that have been introduced recently and it can be difficult for a home buyer to know which one is right for them. There are many misconceptions about some of these programs which makes it even more difficult. What I would like to do today is briefly describe the difference between two of the more popular loan programs so you can decide what might be the best fit for you.

The first of these programs I would like to mention is the HomePath. For those of you who have been receiving my notes for a while, you may have read about this before. The HomePath is a program that has been rolled out by Fannie Mae. It has been designed to assist Fannie Mae sell more of their REO properties. As an owner occupant of the property, it can be purchased with as little as 3% down and there is NO mortgage insurance required which will save a lot in monthly expense. They also do not require an appraisal on this home. I don't think they really want to know what it is worth

Fannie Mae also offers this program for investors. An investor can qualify for this loan with a little as 10% down, no appraisal and they do not have to pay for mortgage insurance either. This is a fantastic way to assist an investor who is looking to maintain more of their personal liquidity.

Now comparing these to the 203k, there are many differences. The 203k can come in two different packages and is only for owner occupants. The standard 203k is really meant for major rehab jobs that may even include foundation issues. It has a standard draw process for the rehab money. The 203k streamline is really a good alternative to someone who just needs to fix up a property but does not want to do a complete rehab job. It has a simplified easy to use draw and can be used for cosmetics only. You are not limited to Fannie Mae homes and qualify in a similar manner that you would with any FHA style loan.

Neither the HomePath or the 203k have very stringent qualifying factors.

Information courtesy of Matt Redding

1st Time Homebuyer Tax Credit: New Info

Wednesday, April 08, 2009

by The Jesse Herfel Group

Don't miss this chance to take advantage of the 1st Time Homebuyer Tax Credit! If you or anyone you know can benefit from this, call 602-565-2424 today! Visit this link for criteria and more information!

http://www.federalhousingtaxcredit.com/

Energy Efficient Housing Tax Credit and Grants

Tuesday, March 03, 2009

by The Jesse Herfel Group

Homeowners will be able to claim and 30% tax credut for purchases of new furnances, windows and insulation through 2010. Attached is a link regarding the stimulus bill.

http://greeninc.blogs.nytimes.com/2009/02/17/obama-signs-stimulus-packed-with-clean-energy-provisions/?scp=1&sq=energy%20efficient%20tax%20credit&st=cse

Bail-out Infomation

Friday, February 20, 2009

by The Jesse Herfel Group

Realtor Insider DC News and Events Report
President Signs the Stimulus Bill

H.R. 1, the "American Recovery and Reinvestment Act of 2009" (AARA), passed the House on February 13, 2009, by a vote of 246 - 184. On the same day, the Senate passed the bill by a vote of 60 - 39. The President signed the bill on Tuesday, February 17, 2009. The bill is a $780 billion package, with roughly 35% of the package devoted to tax cuts (mostly for 2009) and the rest to spending intended to occur in 2009 and 2010.

The mix of provisions of interest to REALTORS® changed frequently throughout the legislative process, with changes continuing to be made just hours before the measure was released prior to the vote. In the end, the elements of NAR's housing agenda were included. Congress and the President have announced that a finance and housing package (including tax provisions) will be the next "big" initiative, so Congress has by no means finished its work as it affects the housing industry and REALTORS®.

The bill includes the following provisions:

· Homebuyer Tax Credit — The bill provides for a $8,000 tax credit that would be available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009. The credit does not require repayment. Most of the mechanics of the credit will be the same as under the 2008 rules: the credit will be claimed on a tax return to reduce the purchaser's income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser. More details are available below in the Federal Tax Report>

· FHA, Fannie Mae and Freddie Mac Loan Limits — The bill reinstates last year's 2008 loan limits for FHA, Freddie Mac, and Fannie Mae loans. These limits were equal to the greater of 125% of the 2008 local area median home price or $271,050 for FHA and $417,000 for Fannie and Freddie, with an overall maximum cap of $729,750. For the few areas where the 2009 limits were higher, the higher limits will apply. In addition, the bill includes language providing the HUD Secretary with the discretion, if warranted, to increase the loan limit for any "sub-area", i.e.an area smaller than a county. The Secretary's discretion is again limited by the $729,750 cap. These 2009 limits will expire December 31, 2009.

The inclusion of these loan limit provisions in the final bill is a victory for homeowners, buyers and REALTORS®. While these new limits were included in version of the original stimulus bill approved by the House, the bill first approved by the Senate did not. NAR's Call for Action to both the House and the Senate prior to the final vote advocated strongly for the provisions which were then included in the final bill approved by both Chambers. NAR has estimated the new 2009 Loan Limits by county.

· Neighborhood Stabilization — Division A, Title XII of the bill provides $2,000,000,000 in additional funding for the Neighborhood Stabilization Program (NSP). The NSP was created by the Housing and Economic Recovery Act of 2089 (Public Law 110–289) to provide grants through the Community Development Block Grant program (CDBG) to states and localities to address the problems that can be created when whole neighborhoods are decimated by foreclosures. The funds can be used to purchase, manage, repair and resell foreclosed and abandoned properties. In addition, the funds can also be used by states and localities to establish financing methods for the purchase and redevelopment of foreclosed properties. After purchase the homes must be used to assist individuals and families with incomes at or below 120% of area median income. Twenty-five percent of funds must be used for households with incomes at or below 50% of area median income. By leveraging their expertise in partnership with others from both the public and private sector, REALTORS® in many communities have been making important contributions to their local communities' neighborhood stabilization programs.

More information on how REALTORS® can contribute to local community NSP efforts>

· Commercial Real Estate — Commercial real estate is impacted primarily through those provisions of the bill focused on green building and energy efficiency as well as business tax incentives. H.R. 1 provides significant funds for state energy programs, which could be used to support commercial property owners' investment in energy efficiency upgrades while commercial property owners seeking to invest in alternative energy systems for onsite power generation would benefit from the Department of Energy Renewable Energy Loan Guarantees Program. Of particular benefit to small businesses would be certain provisions of the bill that provide tax relief in the area of bonus depreciation and capital expenditures, as well as the 5-Year carryback of net operating losses for small businesses.

· Rural Housing Service — The bill provides an additional $500 million to existing USDA Rural Housing programs. The RHS provides both a guaranteed loan program and a direct housing loan program for those meeting the program's eligibility criteria. The direct loan program will receive $270 million while $230 million will be allocated for unsubsidized guaranteed loans. It has been reported that this level of funding would provide for an additional 192,000 homeowners.

· Low Income Housing Grants — Allow states to trade in a portion of their 2009 low-income housing tax credits for Treasury grants to finance the construction or acquisition and rehabilitation of low-income housing, including those with or without tax credit allocations.

· Tax Exempt Housing Bonds — Tax-exempt interest earned on specified state and local bonds issued during 2009 and 2010 will not be subject to the Alternative Minimum Tax (AMT). In addition, financial institutions will have greater capacity to purchase tax-exempt state and local bonds.

Now is the time to buy!

Thursday, February 05, 2009

by The Jesse Herfel Group

Now is the time to buy! We can show you not only the deals, but the STEALS in today's market.

Call the Jesse Herfel Group today at 602-565-2424.

It may be time to think about buying a home!

Ron Lieber, New York Times

Five or 10 years from now, when the financial crisis has ended and housing prices are up smartly once more, we will look in the rearview mirror and realize that we missed a golden age for first-time home buyers.

Then, everyone who sat on their down payment savings accounts for a few years too long will kick themselves for not taking advantage of what may turn out to be the buying opportunity of a lifetime for those who can qualify for a mortgage.

Unfortunately, we do not know when this golden age will begin, because we will be able to identify a bottom to the housing market only with the benefit of hindsight. But as it does with the stock market, the moment will probably arrive when everyone is feeling the most pessimistic.

That moment is certainly getting closer. Housing prices have fallen drastically from their peak levels in many areas of the country. Rates on 30-year fixed-rate mortgages are already close to 5.5 percent, and this week there were suggestions that the federal government might try to drive them down to 4.5 percent, a truly incredible figure to be able to lock in for three decades.

Meanwhile, first-time home buyers have the same advantage they have always had, which is that they do not have to sell their old place before buying a new one. That is an added advantage in areas where many available houses simply are not moving, because the people trying to sell them will not be bidding against you.

If you're hoping for a recovery in the housing market, you ought to be cheering on the first-time home buyers. When they purchase homes, their sellers are free to move on or move up, stimulating further sales.

But if you are a potential first-time buyer yourself, or lending or giving the down payment to one, you are probably as frightened as you are tempted by all the "For Sale" signs that have become "On Sale" signs. So let's quickly review some of the still-grim pricing data in certain areas - and consider the reasoning offered up by first-time buyers who have forged ahead anyhow.
As is always the case with real estate, much depends on location. One study, "The Changing Prospects for Building Home Equity," tries to predict where today's first-time buyers in the 100 biggest metropolitan areas may actually have less home equity by 2012 as a result of continued price declines. The verdict was that buyers in 33 of the markets could see a decline by 2012, including potential six-figure drops on an average home in the New York City, Los Angeles, San Francisco and Seattle metropolitan areas.

This is obviously scary. (I've linked to the study, a joint effort of the Center for Economic and Policy Research and the National Low Income Housing Coalition, from the version of this article at nytimes.com/yourmoney.) It's worth noting, however, that these predictions came before the government made its most recent move to reduce borrowing costs.

Also, the price projections in the study are based, in part, on the fact that the ratio of purchase prices to annual rents is still higher in many areas than the historical average, which is roughly 15 times rents. While past figures may well have some predictive value, I have never been convinced that first-time buyers compare a home that they could own and one that they would rent in purely or even primarily economic terms.
When Jaime and Michael Proman moved this fall to Minneapolis, his hometown, from New York City, they craved a different sort of life after two years together in a 450-square-foot studio apartment. "We didn't want a sterile apartment feel," said Mr. Proman, who is 28 (his wife is 26). "We wanted something that was permanent and very much a reflection of us."

The fact is, in many parts of the country there are few if any attractive rentals for people looking to put down roots and enjoy the sort of amenities they may spot on cable television home improvement shows. Comparing a rental with a place that you may own seems almost pointless in these situations, especially for those who are now grown up enough to want to make their own decisions about décor without consulting the landlord.
Still, for anyone feeling the urge to buy, a number of practical considerations have changed in the last year or two. The basics are back, like spending no more than 28 percent of your pretax income on mortgage payments, taxes and insurance. Even if a lender does not hold you to this when you go in for preapproval, you should hold yourself to it.

You will also want to start now on any project to improve your credit score because it may take several months to get it above the 720 level that qualifies you for many of the best mortgage rates.
John Ulzheimer, president of consumer education for credit.com, a consumer credit information and application site, suggests starting to pay down and put away credit cards months before you apply for a loan. That is because the credit scoring system could penalize you if you use a lot of credit each month, even if you always pay in full. Also, check your three credit reports (it's free) at annualcreditreport.com and dispute errors.

While no one can easily predict the likelihood of losing a job, Friday's startling unemployment figures suggest the need for caution if you think you might be vulnerable. A. C. Panella, who teaches communications at Pasadena City College in California, waited until she had a tenure-track job before buying a home in the Highland Park section of Los Angeles with her partner, Amy Goldman, a lawyer for a nonprofit organization. "We could afford the mortgage payment on one salary, were something to come up," Ms. Panella, 31, said. "It's really about being able to stay within our means."

For many first-time home buyers, that philosophy stretches to the down payment, too. Ms. Panella and her partner put down 20 percent when they bought their home in September, as did the Promans when they bought their home in the Lowry Hill neighborhood of Minneapolis.

Alison Nowak, 29, put just 3 percent down on a Federal Housing Administration-backed loan last month when she and her partner, Lacey Mamak, bought a $149,900, 800-square-foot home several miles south of where the Promans live. "Anything that is an opportunity also has a bit of risk," she said. Her house was in foreclosure before a plumber bought it and fixed it up. "One way we mitigated it was that we bought a really tiny house in a very good neighborhood."

One other strategy might be to buy new instead of used. Ian Shepherdson, chief United States economist for the research firm High Frequency Economics, says he believes that a steep drop-off in inventory of new homes is coming soon, thanks to a rapid decrease in home builder activity.

Since prices generally soften in the winter, it may make sense to start looking seriously once the mercury bottoms out. "If you look at new developments next spring, you may not have the choice you thought you would have or be in the bargaining position you thought you would be," Mr. Shepherdson said. Also, if you wait after June 30, you will miss out on a $7,500 federal tax credit for income-eligible first-time home buyers that works like an interest-free loan.

Finally, allow yourself to consider how it would feel if you bought and then prices dropped another 10 or 15 percent. It might not bother you if you plan to stick around. Plenty of people seem to be making a longer commitment to their homes. According to a survey that the National Association of Realtors released last month, typical first-time buyers plan to stay in their home 10 years, up from 7 last year.

Perhaps people are more aware that they will not be able to build equity as rapidly as others did in the real estate boom. Or they simply have more confidence in hard, hometown assets now than in other markets.

"We wouldn't let another decline bother us," said Michael Proman. "You can never time a bottom. This is a long-term investment for us, and it truly is the best investment we have in our portfolio right now."

Don't miss this opportunity to take advantage of the market! To discuss your options, call us today! 602-565-2424

Visit our listings at www.JesseHerfel.com

The Jesse Herfel Group

2500 S. Power Rd #121

Mesa, AZ 85209

office 480-889-1402

fax 480-889-1400

direct 602-565-2424

jesseherfel@kw.com

Each office is independently owned and operated. Not intended to solicit properties currently for sale.

Jesse Herfel market buy home foreclosures for sale deals on homes

Low Rate Mortgage Plan Generates Hope

Friday, December 05, 2008

by The Jesse Herfel Group

Information from the Arizona Republic on mortgage rates.

http://www.azcentral.com/php-bin/clicktrack/email.php/8475402

real estate Jesse Herfel interest rates mortgage infomation

Short Sale vs. Foreclosure Credit Damage

Friday, November 14, 2008

by The Jesse Herfel Group

If you or anyone you know may be in need of short sale assistance, the Jesse Herfel Group are your short sale experts! Call us today at 602-565-2424 to discuss your options!

Short Sale vs. Foreclosure

Basics of a Short Sale:

Short Sales happen when a lender agrees to accept

less than the amount owed against the home because

there is not enough equity to sell and pay all costs of

sale. Not all lenders will negotiate a Short Sale, and

that is why a Real Estate agent can be a tremendous

help by contacting the lender’s loss mitigation

department to find out.

You can’t just wake up one morning and decide you’re

going to sell your home at a loss by asking for a Short

Sale. Typically, lenders won’t even consider a Short

Sale if your payments are current. Lenders will be

more agreeable to negotiation if your payments are in

arrears. Plus, if you have cash assets, the lender might

try to tap those accounts. Doing a Short Sale is not for

the faint of heart.

How is the Seller’s Credit Affected?

According to Christopher Rockey, Director of Education

for Mortgage Resolution Services, sellers will take a

bigger hit on their credit report by going through

foreclosure or giving the lender a deed-in-lieu of

foreclosure. Rockey says the points lost on a FICO score

(the formula used to assess a borrower’s risk factor)

are as follows:

•

Both of these solutions affect credit the same.

Sellers will take a hit of 250 to 280 points. This

means if a seller’s FICO score before foreclosure is

680, it could dip as low as 400.

Foreclosure or Deed-in-Lieu of Foreclosure:

•

The affect of a short sale on a seller’s credit report

is much less damaging. The ding on credit will show

up as a pre-foreclosure in redemption status,

Rockey says, which will result in a loss of 80 to 100

points. This means a Short Sale with a previous

FICO of 680 will see it fall to 480 to 600.

Short Sale:

•

Borrowers must realize these numbers are only

theory. They must continue to be responsible with

their other consumer debt. Often if the hardship is

financially related, borrowers fall behind on other

consumer responsibilities.

Important Note:

Waiting Period Before Buying Another Home

•

Recently Rockey said, Fannie Mae and Freddie

Mac have changed their guidelines. Foreclosure is a

minimum of 5 years with a FICO score of 680 and

10% down. A Deed-In-Lieu is 4 years, 680 FICO,

and 10% down.

Foreclosure or Deed-in-Lieu of Foreclosure:

•

2 years, no minimum credit score and no minimum

down payment. These numbers are extremely

important to consider.

Short Sale

Short Sale/Foreclosure Deficiency Judgments

The bad news is a seller could be subject to a

deficiency judgment for the difference between the

loan amount and the amount paid. In Arizona, purchase

money loans are not subject to deficiency judgments;

however, hard money loans, home equity loans and

refinances are. Exception: refinances can be antideficiency

if paying off purchase money loans.

The lender has sole discretion whether to pursue a

deficiency judgment in those instances when the

judgment is permitted. To determine whether a

pending Foreclosure or Short Sale is subject to a

deficiency judgment, clarify the issue with the lender or

talk to a real estate lawyer.

For sellers trying to decide whether to let a home go

through foreclosure versus attempting a Short Sale,

salvaging their credit is the main advantage to doing a

Short Sale. Be sure to seek legal and tax advice

before making this decision.

Article obtained from www.about.com and authorized

by Elizabeth Weintraub who has an extensive

background in real estate spanning more than 30

years.

Effects on Credit

Sue Reagan

Marketing Representative

Cell: 602.230.6263

sreagan@securitytitle.com

LuAnn Pulver

Assistant Vice President and Branch Manager

S

Suite 122 · Mesa, AZ 85209 · 480.830.0534
UPERSTITION SPRINGS OFFICE · 2500 S. Power Road