Get $15,000 To Buy A Home in the City of Phoenix

Your Window to Homeownership

 

The federally funded Neighborhood Stabilization Program (NSP) enables eligible applicants to realize homeownership in Phoenix by providing monetary incentives to assist with down payment, closing costs and home improvement.

 

The three NSP assistance programs are:

1.  Homeownership Assistance (purchasing foreclosed homes anywhere within the city of Phoenix limits)
2. Home Improvement Program (purchasing foreclosed homes needing repair in specific Phoenix ZIP codes)
3. Move-In Ready (purchasing newly rehabilitated, foreclosed homes in specific Phoenix ZIP codes).

Each of the NSP programs provides the following:

• a three-year home warranty policy
• friendly guidance throughout the process
• assurance that the buyer is ready for successful homeownership 

Phoenix has a large inventory of eligible, foreclosed properties to choose from, offering close proximity to amenities, jobs and public transportation, while living in established neighborhoods.

 

 You may be eligible for one of these helpful NSP programs, if you:

• Do not currently own any real estate
• Will occupy the home as your primary residence
• Earn within the program’s income requirements, which are less restricted than you may think. For example, a family of four can make $79,100 and still qualify for the program.

Achieve your dream of homeownership by pursuing one of the three NSP programs without delay. Given the current affordability of resale homes in Phoenix, the time to buy is now!

 

Call today to learn more at 602-262-6602 or by e-mail at nsphome@phoenix.gov.

Phoenix housing values improve

Phoenix Business Journal - by Jan Buchholz

Two reports released Tuesday, one local and one national, appear to confirm that housing values are improving in the Phoenix market. Arizona State University’s Repeat Sales Index shows that although prices are lower than one year ago, the declines are not as severe as they have been.
For instance, the index shows prices dropped 9 percent from January 2009 to January 2010. That compares with a 13 percent year-over-year price drop in December 2009 and a 17 percent year-over-year price drop in November 2009.
“The March figures also show the first monthly increase in the median price of non-foreclosure homes since the end of 2007,” said ASU Professor Karl Guntermann, who is the Fred E. Taylor Professor of Real Estate. “This may signal the start of price stability throughout much of the housing market.”
The median price for single-family homes sold in January was $125,000. That compares with May 2009 when the median price slipped to $115,000, the lowest recorded during the recession.
The S&P/Case Shiller Home Price Indices also indicate that housing value declines are beginning to slow in Phoenix with a one-year composite decline hovering at 1.6 percent. That was one of the smallest declines among 20 metropolitan areas surveyed.
The largest housing value decline from February 2009 to February 2010 was 14.6 percent in Las Vegas, although Las Vegas has seen a small improvement in recent monthly returns. Other markets where prices reached new lows were Charlotte, N.C.; New York; Portland, Ore.; Seattle; and Tampa, Fla.
The only market to record price increases from January to February of this year was San Diego. Case Shiller shows Phoenix as recording a 1.5 percent composite decline from January to February and a 0.6 percent decline from December 2009 to January 2010.
Analysts at Case Shiller said all homes sales, housing starts and inventories showed “tremendous improvement” in March, as well.
The ASU Repeat Sales index indicates, however, that condo and townhouse sales are still suffering with an average price drop of 28 percent from January 2009 to January 2010. The median price was $80,000 in January but that number is expected to rise to $83,500 when the final numbers are tabulated for March of this year.
ASU recently began tabulating the repeat sales index for commercial properties. The news there isn’t good.
“At the end of 2009 commercial prices were declining at an annual rate of 40 percent,” the report stated.
The ASU-RSI is based on repeat sales, which compare the prices of a single house or now a commercial property against itself at different points in time, instead of comparing different homes with different quality factors.

Don't foreclose! Do a short sale

By Les Christie, staff writerMarch 29, 2010: 2:30 PM ET

NEW YORK (CNNMoney.com) -- Short sales are the hottest thing going in the distressed-property market, and the trend is expected to get even hotter in coming weeks, when the government starts handing out cash to encourage lenders to close these deals.

"Banks have ramped up short sale approvals," said Duane Legate of House Buyer Network, which connects short sellers with buyers. "They're hiring a lot of the people who once worked in the mortgage-lending industry and moved them over to short sales."

These transactions, where lenders allow homeowners to sell their houses for less than they owe, accounted for 17% of all residential real estate sales in February, up from nearly 13% in November, according to a monthly real estate market survey by Campbell/Inside Mortgage Finance.

And Bank of America (BAC, Fortune 500), the country's largest mortgage servicer, has more than doubled the number of short sales it processed in recent months.

Elizabeth Weintraub, a Sacramento, Calif.-area real estate agent who handles many short sales, was amazed at how quickly a recent deal went through. "Bank of America approved it in 24 days," she said. "That flipped me out."

This is a huge change from even just six months ago when the short-sale market was stalled and most people would describe the process has real estate hell. Because lenders stand to lose so much on these transactions, they have been reluctant to make short sales happen, often waiting months before getting back to potential buyers.

Beware: You lost your house but still have to pay

"In the past, many short sales would never come to fruition and the ones that did averaged over half a year to complete," said Chris Saitta, CEO of Equator, which produces short sale software.

"Things would just fall into a black hole and not come out again," added Weintraub.

And even when banks did agree to the sale, the process could be further complicated if the original owner had a second mortgage.

In most cases, the first lender is repaid in full before any money flows to a second-lein holder. And because most distressed borrowers are severely underwater, there's usually nothing left to send on. As a result, second-lein holders are left holding the bag and have been killing many deals.

But that has been changing. For one thing, banks realize that they make out far better financially with a short sale than a foreclosure. "The lenders lose 50% on a foreclosure and only 30% on a short sale," said Glenn Kelman, founder of the real estate Web site Redfin. "And short sales offer a way to get distressed properties off their books quickly."

And on April 5, lenders and mortgage investors will have even more incentives to offer troubled borrowers short sales instead of foreclosing.

Under the new Home Affordable Foreclosure Alternatives program, borrowers will earn a $3,000 "relocation incentive" and servicers will get $1,500 for handling a short sale.

The investors who actually own the mortgage notes will get $2,000 in exchange for sharing proceeds of the short sales with any second-lien holders. And, finally, those second lien holders will receive up to $6,000 for releasing their claims.

Lenders participating in the program must also determine the market values of properties early on and inform the owners of just what price they're willing to accept. Then, if owners come back to the lenders with bonafide offers, they have to be accepted within 10 days.

Equator's Saiita anticipates a short sale explosion in response to the new program. "The challenge will be handling all the volume," he said.

The company has already tweaked its software, which 58 servicers use, to handle the new HAFA rules. And that should help reduce the time it takes to execute a sale, which currently averages 88 days.

The boom in short sales may accelerate the end to the foreclosure crisis by cleaning out the overhang of borrowers in distress and replacing them with more stable homeowners.

Plus, these sales are better for distressed borrowers because their credit scores suffer less. Going through a foreclosure can knock 200 points off a FICO score, twice as much as the penalty for a short sale.

Your Window to Homeownership

Buying a foreclosed home within the city of Phoenix has its advantages.

The city of Phoenix Neighborhood Stabilization Program (NSP) offers a homeownership assistance program providing $15,000 for down payment and closing cost assistance. Eligible buyers must be FHA creditworthy and have completed the NSP-required eight-hour Homeownership Education Class and Credit/Budget Assessment counseling course.

Buyers must maintain the property as their principal residence and the total household income must be below 120% of area median income. For example, a household of four earning $79,100 or less has the potential to become eligible to participate. Program participants must contribute a minimum of $1,000 of personal funds for down payment or closing costs.

The program targets foreclosed single-family homes, townhomes and condominiums (condominium conversions are not eligible) that meet HUD Housing Quality Standards (HQS). The purchased home must be a foreclosed home anywhere within the city of Phoenix limits and meet other eligibility requirements.

The $15,000 is paid back to the city when the homebuyer sells the home or refinances.

Funds are still available.

For more information visit phoenix.gov/nsphome or call 602-262-6602.

Where have I been??

Gosh, it's been since November since I posted!!  I didn't think it had gone that long, but now I'm back.  Life just sometimes gets in the way...  My goal is to post every other week, so please let me know what information you are in need of and I will get you answers!  Welcome back..to me!

Economy showing sustainable recovery...

Housing and Economy Headed for Sustainable Recovery; First-Time Homebuyers Lead the Way

RISMEDIA, November 18, 2009—Aided by the home buyer tax credit, the outlook for housing and the economy appears headed for a sustainable recovery, according to the National Association of Realtors®.
Lawrence Yun, NAR chief economist, said the projections are enhanced by a tax credit expansion to more home buyers through the middle of 2010. “Given the success of the first-time buyer tax credit to date, and the need for qualified buyers to continue to absorb inventory that will include additional foreclosures over the coming year, we are hopeful about the impact of the expanded tax credit because it will stabilize home prices,” he said. “In fact, the credit is working better than first projected – it now looks like we’ll have 2.3 to 2.4 million first-time buyers this year.”
The 2009 National Association of Realtors® Profile of Home Buyers and Sellers, shows first-time buyers accounted for a record 47% share of home sales over the past year, up from 41% in the 2008 survey. The share has risen steadily since a cyclical low of 36% in 2006.
Existing-home sales are expected to total 5.01 million in 2009, a gain of 2.0% over last year, and then are forecast to rise 13.6% to 5.69 million in 2010. “A steady draw down of inventory will help home values to turn positive in 2010, but risks such as unemployment remain in the economy,” Yun said.
New-home sales are projected at 397,000 this year, recovering to 549,000 in 2010. Housing starts, including multifamily units, should total 564,000 units this year but grow to 752,000 in 2010.
The 30-year fixed-rate mortgage will probably average 5.3% in the fourth quarter, rising gradually to 5.8% by the end of next year. NAR’s housing affordability index will set a record in 2009, averaging 30 percentage points higher than 2008. Affordability will decline from record highs next year but will remain at historically attractive levels for home buyers.
“We’ve seen a steady downtrend in housing inventory for well over a year and home prices appear to be in the early stages of stabilizing. With the expansion of the tax credit to additional buyers through the middle of next year, and no major unforeseen events impacting the economy, home prices should rise between 3 and 5% in 2010, but with wide geographic differences,” Yun said. He expects growth in the U.S. gross domestic product to be at a pace of 2.5% in the current quarter, with GDP up 2.8% in 2010.
The unemployment rate is close to peaking and is projected to ease to 9.5% by the end of next year.
“The size of the U.S. budget deficit is a concern going forward, and carries the risk of higher inflation. At this point, that risk appears to be restrained,” Yun said. Inflation, as measured by the Consumer Price Index, is seen contracting 0.4% this year, then rising 1.6% in 2010. Inflation-adjusted disposable personal income is estimated to grow 0.4% this year and 1.2% next year.

For more information, visit www.realtor.org.
RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.
Don’t miss these top headlines on RISMedia.com:
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Checklist for Natural Search Engine Rankings, Part II

Read more: http://rismedia.com/2009-11-17/housing-and-economy-headed-for-sustainable-recovery-first-time-homebuyers-lead-the-way/#ixzz0XDeTgeN4

Home sales up over '08, but many involve foreclosures

Sales of existing homes around the Phoenix area are up from last year, but a large number of those sales continue to be foreclosed properties.
According to ASU’s Realty Studies department, the region recorded more than 6,100 home resales in October. That’s roughly the same as September, but up sharply from about 4,500 in October of 2008.
Despite the strong annual growth in home sales, a big portion of the transactions this October were sales of previously foreclosed properties – a whopping 45 percent.
According to ASU, more than 3,800 homes were foreclosed on during October. That’s up from the September foreclosure total of more than 2,900.
“Typically, a housing recovery happens in a growing economy and with declining interest rates,” says associate professor of real estate Jay Butler, author of the new housing report. “However, the current recovery is limited with the possibility of higher rates and a continuing weak job market. Further, the housing tax credit could be dissipating the pent-up demand for new buyers to get into the market, weakening their influence in the future.”
Butler added that all of these foreclosures will eliminate some households from being able to obtain financing to buy a “move-up” home. Others may be “seriously limited by declining neighborhood values (on their current homes) and restrictive debt amounts.”
The median single-family home price in the Valley in October was $143,000, up from September’s median price of $140,000, but still far below last October’s median of $167,000.
“For the last year, approximately half of the home resales in the Phoenix area were foreclosed homes that were sold again with a median price markdown of 19 percent,” Butler said.

Courtesy of the Phoenix Business Journal
Thursday, November 12, 2009, 11:58am MST

Home Buyer Tax Credit Extended AND EXPANDED...

Details of Home Buyer Tax Credit Extension

Yes, Obama passed the Home Buyer Tax Credit last Friday and here are the details:

• The $8,000 tax credit is for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
• The tax credit does not have to be repaid.
• The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
• The tax credit applies only to homes priced at $800,000 or less.
• The tax credit now applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.
• For homes purchased on or after January 1, 2009 and on or before November 6, 2009, the income limits are $75,000 for single taxpayers and $150,000 for married couples filing jointly.
• For homes purchased after November 6, 2009 and on or before April 30, 2010, single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.

The $6,500 Move-Up / Repeat Home Buyer Tax Credit at a Glance

• To be eligible to claim the tax credit, buyers must have owned and lived in their previous home for five consecutive years out of the last eight years.
• The tax credit does not have to be repaid.
• The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $6,500.
• The tax credit applies only to homes priced at $800,000 or less.
• The credit is available for homes purchased after November 6, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, the home purchase qualifies provided it is completed by June 30, 2010.
• Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.
   
   
  Please let me know if you have any questions on this!
  

Keep Tax Credit Going...

Housing Tax Credit Working, NAR Says to Keep Momentum Going

RISMEDIA, October 22, 2009—
Consumers are just starting to see the first glimmers of a bright future for the housing market and the overall economy. It’s up to Congress to make that glimmer a reality by building on the momentum created by the $8,000 home buyer tax credit.
One of the key ways to do that is for Congress to extend the home buyer tax credit, said National Association of Realtors® First Vice President Ron Phipps to the Senate Banking, Housing and Urban Affairs Committee during a hearing on “The State of the Nation’s Housing Market.”
“The data on the present home buyer tax credit show that the credit has had its intended impact—sales have jumped in recent months to a projected 5.1 million for the year and housing inventory has been trimmed, thus stabilizing home prices noticeably,” Phipps said. He also pointed out that each home sale generates approximately $63,000 in additional economic activity, providing a tremendous economic boost to the national economy.
“But it is a fragile recovery, and now is the time to build on home sales momentum by extending the tax credit throughout 2010 and expanding it to all home buyers,” he said. The present credit, due to expire on November 30, cannot help new purchasers now who write a contract today—they won’t be able to close before the deadline, and will lose out on the credit, said Phipps. “Without congressional action now, the market and our national economy may freeze again—possibly as soon as this month.”
Phipps called upon Congress to take action on a number of additional fronts to strengthen the recovery. First, make the FHA and Fannie Mae/Freddie Mac loan limits permanent; these are set to expire on December 31. “Maintaining current loan limits would ensure that families have access to low-cost financing to purchase homes and can refinance problematic loans into safer, more affordable mortgages,” Phipps said.
In addition, Congress should continue federal government involvement in the secondary mortgage market. “Without the government’s involvement in the secondary mortgage market, market participants will have no incentive to reach out to lower income, creditworthy consumers. We must ensure that the housing market works in all markets and at all times and that mortgage capital is provided to all potential and qualified purchasers in a way that promotes sustainable homeownership,” said Phipps.
Congress must also adequately address: 
-The lack of liquidity in the jumbo mortgage market;
-Tight credit in the commercial real estate market;
-The Home Valuation Code of Conduct’s unintended side effects that are hindering sales;
-Increased funding to help FHA upgrade their technology and for Congress to ensure that funding be included in the final version of the FY2010 appropriation for HUD;
-Administration incentives and uniform procedures for speeding short sales under a new Foreclosure Alternative Program; and
-The potential for significant spikes in interest rates or disruptions to the flow of mortgage capital as the Federal Reserve unwinds the mortgage-backed securities purchase program to ensure that this does not happen.

Read more: http://rismedia.com/2009-10-21/housing-tax-credit-working-nar-says-to-keep-momentum-going/#ixzz0UfTUpHGn

Be savvy to snag home tax credit

Be savvy to snag home tax credit

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