Now the goods news is bank owned homes represent the best deals out there right now. Short Sales takes months to get bank approval while you hope nobody eles writes an offer and private owners are not able or willing to price their home anywhere near the banks pricing.

If you want to have a chance at snagging one of these good deals away from the other sharks, you need to come prepared. I have prepared a sort list of things you need to have ready in order to write the best offer possible.

1. Make sure you are preapproved and have your letter with you. This will let you know what you can afford and also let’s the selling bank know that you are already approved and can buy the property in question.

2. Have current bank statements and your check book. You will need to write a deposit check and many banks are asking for proof of funds up-front with the offer.

3. Be prepared to go over asking price. If a home is worth $200,000, but only priced at $165,000, you can be sure that somebody else will offer clser to full price for it. If you really want it, you will have to come in even higher. Most banks will give everybody the chance to come in with a ” Best and Final ” offer, but not always. Sometimes, your first offer is your only shot. Be prepared for this eventuality.

4. If your Realtor is an experienced agent who has dealt with REO properties, listen to their advice. Odds are they have been in a similar situation and they know what to expect.

5. If there are multiple offers, don’t ask for a home warranty, termite work, or anything that is not absolutely necessary. The more you ask for, the less chance you have of getting your offer accepted.

While there are many variables that can occur, keeping these five things in mind will help you get the property you want.

To search for bank owned homes for sale in teh metro Phoenix area visit www.valleyreadvisor.com or simply contact me directly at 623.362.3060.

According to the latest MLS data, Sun City, while definitely hurting, is a lot better off than its neighbors. The median sales price in April for a single-family dwelling in surrounding Maricopa County (Arizona’s populous region that includes Phoenix, Mesa, and Scottsdale) was $125,000, down from $230,000 a year ago. That’s 46% in 12 months. Ouch. In Sun City during the same period, home prices fell just 24%. What’s killing Maricopa County is foreclosures. Even as home sales rise, cheap, bank-owned properties are flooding the market: 1,042 in April alone, plus 8,396 new pre-foreclosures, where the borrower has stopped paying and the eviction process is underway. Foreclosures during the same month in Sun City? Six, representing an infinitesimal one-hundredth of 1% of Sun City’s single-family homes. Fewer foreclosures equals greater stability.

It’s a pattern that seems to play out nationally. While there’s been little research on how retirement markets have fared specifically, experts say that the same profile - minimal foreclosures, less severe price drops - is true of retirement communities across the country. Says Bill Ness, founder of the retirement website 55places.com: “It is a common understanding among most agents that real estate values have held up better in active adult communities than in other non-age-restricted communities.”

There could be a simple explanation for this: Old people aren’t as stupid and greedy as young people are. Or maybe they’re just not as stupid and greedy as they were when they themselves were younger. “By the time you’re retired,” says Phil Andrews, 85, a Vietnam vet and 10-year resident of Sun City West, “you’ve got a little bit of sense about buying a house. You’re not going to buy one you can’t pay for.”

If you would like to read the rest of the article you can click this link and it will take you to the Fortuen website.

Of course for more information about real estate in Arizona you can contact me direct at 623.271.4234 or visit www.Retiring2Az.com for all you active adult questions.

Jay Otlewski

RE/MAX Integrity

Last week, Vale, 59, and his wife, Bobbie, cleared the final hurdle to a “trial loan modification” that will cut their interest rate, lower their monthly payment and give the Orange City, Fla., couple a fighting chance to save their home.

“My wife lost her job after she became disabled; then I got laid off,” he said. “We were still scraping by, but the handwriting was on the wall. Then we heard about this program that seemed exactly for people like us who had never been late on their mortgage. And it gave us some hope.”

Tens of thousands of people nationwide have tapped the federal Making Home Affordable initiative, the Obama administration said last week. The program, enacted in March, aims to help the millions of people current on their mortgages but struggling with payments and those delinquent on their loans.

Less than three months after its launch, more than 120,000 homeowners have received loan modifications and a few thousand more have gotten refinancings through the program, the Treasury Department reported. The early results are in stark contrast to last year’s ill-fated Hope for Homeowners program, which fell flat after it was beset by red tape and eligibility complications. It drew fewer than 100 applications nationwide after several months.

The new Making Home Affordable program still has a long way to go before it has measurable effect on the nation’s flood of foreclosures. Still, those on the front line of the crisis say it is the most promising initiative so far.

“There’s no comparison to other programs,” said Rosa Miro, a housing counselor with Consumer Credit Counseling of Central Florida who worked with the Vales. “I was never able to put even one client in any of those programs. This one at least gives people a real opportunity to recover.”

What the new program does differently, among other things, is throw some serious money - $75 billion - at the problem to provide financial incentives for all involved.

In addition to getting more favorable terms, homeowners who qualify for the program and stay current with their loan will get as much as $1,000 a year taken directly off their mortgage principal over five years. Lenders and mortgage servicers will also get $1,000 for processing an application to modify or refinance a loan, plus another $1,000 if they approve the application.

That’s a big change from the past, when loan servicers got nothing for modification work but cash incentives from lenders for doing a foreclosure.
One of the big improvements, homeowner advocates say, was the passage only weeks ago of a federal law that shields mortgage servicers from lawsuits by angry investors in mortgage-backed securities.

The potential for litigation from investors has long been viewed as discouraging mortgage servicers from working with distressed homeowners trying to obtain relief. Simply put, servicers didn’t want to risk being sued if, by modifying people’s loans, they reduced the potential payoff of mortgages bundled and sold as investments.

The shield law and other such measures are gradually changing lenders’ and servicers’ attitudes toward working with troubled homeowners, said Jeff Perdue, president of Orlando Home Mortgage, a brokerage that works mostly with the new program’s refinance guidelines.

“We finally have something we can really work with,” he said. “It’s not a watershed by any means, but it is revolutionary compared to Hope for Homeowners. At least it’s making a dent.”

Still unclear is how much of a dent the program is making in the pile of foreclosures. Treasury officials would not release data on how many homeowners have applied, so the program’s approval rate is unknown.

In addition to the more than 120,000 loan modifications processed in the first three months, 3,650 homeowners have refinanced their mortgages through Making Home Affordable - a relatively meager total given the number of homeowners in distress. More than 2.4 million new foreclosures are expected by year’s end, according to an estimate by the Center for Responsible Lending, a consumer-watchdog and research group. And that estimate could wind up being low, because a record 12% of the 45 million mortgages in the country were delinquent during the first quarter, according to the Mortgage Bankers Association.

Against that backdrop, even the Making Home Affordable program has been pretty slow out of the gate, said Barry Zigas, housing director for the Consumer Federation of America, the nation’s largest consumer-advocacy group.

“I really haven’t seen much of a result from it yet,” he said. “I do understand that most of the biggest servicers have signed up, but this is still moving forward at a slow pace. They have a lot of applications in the pipeline, but foreclosures are still up.”

The new initiative has also encountered some of the same problems as the old ones: homeowners getting the runaround at corporate call centers, confusion about program eligibility, uninformed customer-service reps, and mortgage servicers that won’t help borrowers until they’re behind on their loan payments.

“There are still a number of hurdles to overcome,” said Richard Scaggs, chief executive officer of Consumer Credit Counseling of Central Florida. “Overall, we do have a much-improved program now, and we’re getting much more buy-in from the servicers. But it is all so new, there are servicers out there who are really overwhelmed with it all.”

©2009, The Orlando Sentinel (Fla.).
Distributed by McClatchy-Tribune Information Services.

Read more: http://rismedia.com/2009-06-11/federal-homeowner-program-may-be-making-a-dent-in-foreclosures/#ixzz0IE2jRhDR&C

It’s in it’s 4th season and already has plans for the 5th season with even more musicals. We went last week to see Bye Bye Birdie, a story of Elvis (not really) before he left for the military. It was a blast! We laughed the entire time…other than when we were enjoying a great meal. This dinner theatre offers some of the best food in the west valley to go along with the great entertainment.

People often ask about what the west valley has to offer vs. the east vally (Scottsdale-Tempe) and my answer is lots! We have the Coyotes (maybe), the Phoenix Cardinals, Westgate and now I can brag about the Arizona Broadway Theatre….you can bet we’ll be back there.

You can check it out at www.AzBroadwayTheatre.com and I know you’ll have a great time!

If you have any questions about real estate of course I can help you and YES I’ll continue to write about real estate but I really want to get the information out about some of the fun things you can do….even in the west valley!

RISMEDIA, June 3, 2009-The weekly average mortgage rate borrowers were quoted on Zillow Mortgage Marketplace for 30-year fixed mortgages increased last week to 5.25%, up from 5.02% the week prior, according to the Zillow Mortgage Rate Monitor, compiled by leading real estate Web site Zillow.com(R). Meanwhile, rates for 15-year fixed mortgages rose to 4.78% from 4.60%, and 5-1 adjustable rate mortgages rose to 4.48% from 4.27% the week prior.

Mortgage Type Average Rate Average Rate % Change
Week ending 5/31/09 Week ending 5/24/09

30-year fixed 5.25% 5.02% 4.6%
15-year fixed 4.78% 4.60% 3.7%
5-1 ARM 4.48% 4.27% 4.8%

Rates dipped slightly over the weekend, but were expected to climb again during the week. The rate for a 30-year fixed purchase mortgage was 5.28% on Monday morning.

Thirty-year fixed mortgage rates varied by state. Maryland mortgage rates and Massachusetts mortgage rates were the highest, at 5.35% and 5.30%, respectively. Georgia mortgage rates were the lowest, at 5.15%. California mortgage rates were the most requested among all states.

State Average 30-yr. Average 30-yr. % Change
Fixed Rate Fixed Rate
Week ending 5/31/09 Week ending 5/24/09

Arizona 5.25% 5.04% 4.1%
California 5.24% 5.00% 4.7%
Colorado 5.23% 5.02% 4.1%
Connecticut 5.26% 4.99% 5.4%
Florida 5.19% 4.97% 4.4%
Georgia 5.15% 4.93% 4.5%
Illinois 5.28% 5.08% 4.0%
Maryland 5.35% 5.09% 5.1%
Massachusetts 5.30% 5.11% 3.7%
Michigan 5.21% 5.01% 3.9%
Missouri 5.25% 5.06% 3.8%
New Jersey 5.24% 5.02% 4.4%
New York 5.29% 5.05% 4.7%
North Carolina 5.27% 5.07% 3.9%
Ohio 5.28% 5.11% 3.3%
Oregon 5.27% 5.03% 4.9%
Pennsylvania 5.26% 4.99% 5.3%
Texas 5.25% 5.02% 4.5%
Virginia 5.23% 4.96% 5.5%
Washington 5.24% 4.98% 5.2%

The Zillow Mortgage Rate Monitor is compiled each week using thousands of mortgage rates quoted on Zillow Mortgage Marketplace by mortgage lenders to borrowers who have submitted loan requests. State-level data is gathered for the top 20 states with the highest quote volume on Zillow.

For more information, visit www.Zillow.com.

Read more: “Mortgage Rates Surge Late Last Week; 30-Year Fixed Rates Peak Near 5.40% But Fall Over Weekend | RISMedia” - http://rismedia.com/2009-06-02/mortgage-rates-surge-late-last-week-30-year-fixed-rates-peak-near-540-but-fall-over-weekend/#ixzz0HOeSLbKi&A

Here’s a quick look at what the Phoenix Arizona market did for the month of May.

Sales were even higher in May than April and June is setting up to be another banner month. Please watch the video and let me know if you have any questions or comments.

Of course when you’re ready to buy a home in the Phoenix Arizona area please consider me. I would be happy to spend a few minutesd with you in person or on the phone to evaluate if we’re a good match.

I can be reached at 623.271.4234 or email me at Jay@valleyREadvisor.com.

PS. Remember you always have ValleyREadvisor.com and Retiring2Az.com for all your real estate needs!

The truth is nobody knows when we’ve hit the bottom until 4-6 months after prices have gone up so if you can buy a home for 1/2 of the price 4 years ago…get an incredible interest rate (4.75-5.25%) and buy your dream home…..why wait!

RISMEDIA, June 1, 2009-U.S. home prices fell in the first quarter of 2009 according to the Federal Housing Finance Agency’s (FHFA) seasonally-adjusted purchase-only house price index (HPI). The previously announced, but revised January and February indexes showed increases in house prices, which were offset by a March decrease. The purchase-only HPI, calculated using home sales price information from Fannie Mae and Freddie Mac-acquired mortgages, was 0.5% lower on a seasonally-adjusted basis in the first quarter than in the fourth quarter of 2008. This decline was much more modest than the 3.3% decline in the prior quarterly period. Over the past year, seasonally-adjusted prices fell 7.1% from the first quarter of 2008 to the first quarter of 2009.

FHFA’s all-transactions house price index, which includes data from mortgages used for both home purchases and refinancings, showed more strength over the latest quarter than the purchase-only index. The all-transactions HPI rose 0.4% in the latest quarter and fell only 3.3% over the four-quarter period.

FHFA Director James B. Lockhart stated: “Our latest data are consistent with growing evidence that housing market conditions may be stabilizing in some parts of the country, especially areas not covered by the other major repeat sales price index,” said Lockhart. “I am hopeful that this first quarter data combined with recent market stimulus programs, such as the first-time homebuyer tax credit and President Obama’s Making Home Affordable Program may mean that home price depreciation may be easing.”

Read more: “Home Prices Fall in First Quarter; Pace of Decline Lessens Considerably | RISMedia” - http://rismedia.com/2009-05-31/home-prices-fall-in-first-quarter-pace-of-decline-lessens-considerably/#ixzz0HBntfxAC&A

The interesting part in this is the bank have lowered the price on a lot of homes by 15-20k and they are selling fast. My guess is the TARP money from the government is starting to drive the banks to lower their inventory and the only way to do that is to lower the price of the homes.

What does that mean for you? If you are renting…stop! There’s no reason to continue renting when the prices of homes are so low and the interest are at historic lows. Not to mention the $8,000 check you’ll recieve from the government if you haven’t owned a home in 3 years.

Wonder what a $85,000 home looks like? Check this out- Surprise (or what ever town you want).

Want more information about how you can become a homeowner? Contact me at 623-271-4234 or visit www.valleyREadvisor.com for more information.

This program is similar to Sun City Festival’s program in that it pays for a dinner, gives you access to the community center and more. It lets you hang out at the club, meet people that live here and learn what it’s like to live in a resort style active adult community. Here are a few details-

The Taste of Trilogy program is where you can stay 2-4 nights, receive $100 gift certificate for the Verde Grill, two for golf or two for spa treatment and full use of the Kiva Club and amenities.

2 night, 3 days - $189

3 nights, 4 days - $269

4 nights, 5 days - $349

If you decide to purchase, Shea Homes will credit back the cost of this stay making this stay FREE. What could be better than staying where you want to buy?

I mentioned that Sun City Festival also offers a program like this and in fact I can get you a $5,000 credit for buying out at Festival if you stay there so maybe you could take advantage of both communities and make a whole week of active adult living!

To learn more about these great programs please give me a call at 623-271-4234 or email ay Jay@valleyREadvisor.com and I can cover all the details including helping you setup the stays and make sure you receive your discounts.

For more information about active adult living (Over 55) in Arizona visit www.Retiring2Az.com

This newsletter breaks down all the subsets of our market like how many bank owned homes sold? What percentage of the market were they? What price range is selling fast? And much more!

To get this new report please email me at jay@valleyREadvisor.com and request this free market report!