With the market being the way it is today, there is no telling what you may find when you walk into a property. Of course there have been many stories of house after house that is stripped bare. However, some of the more eyebrow raising tidbits that have filled my twitter stream just don't get the media lime light. Stories like this one from @SharRundio (paraphrasing from memory)got a call from a buyers agent saying she walked in on 2 teens having sex in the backyard at one of my listings, or the time when Jason found out a squatter had used his real estate sign to pry open the garage of one of his listings and sleep over (leaving his birth certificate, or someones birth certificate on the kitchen counter.) No you won't see those stories in the folds of the daily paper or on the evening news, the media simply isn't interested. Of course until something goes horribly wrong. Something like what happened this evening at a home near Bell and 35th Avenue.
Man loses home, is shot by police
*Updated story here
Going off only the information that is in this brief article I am very curious as to whether or not these men that bought the home, were working with a Real Estate Professional. Now I am in no way implying that if they were working with an agent that this tragedy would have been avoided, nor am I saying that if they did have an agent that agent should have prevented this. What I am saying is, did they have ALL of the information they needed to make a thoughtful and researched decision when they purchased this home. (Sounds to me like it may have been bought sight unseen from the court house steps) Were they aware of the fact that while they are getting a new home at a rock bottom price, it means someone else lost that home. Was there a HUMAN element in this at all or was it all about the $$?
This brings me to my main question. As Real Estate professionals should we care about the human element? I ask this sincerely, because this very question struck me last week. Jason and I were waiting for the call saying "it's been recorded" and in the mean time went to set up a thank you gift in the home for some buyers prior to handing over the keys. Since these buyers were close friends of ours and they were aware that I am in the process of obtaining my own RE License, I went along on many home tours during their process (for experience and for fun) However, I had not been to the home that they actually ended up buying, until this day. I was overwhelmed with excitement and relief because they had FINALLY found a perfect for them home. What surprised me was I also felt a little sad. As we walked around the home, evidence of those that lived there before was still visible. Nothing disgusting,that's not what I mean, what I mean is I could see "life" there. I tried hard to envision it as being our friends life, but it wasn't. The paint style wasn't them, that was the other people, the flower bed someone else's fingers planted that. All of that is changing today as our friends make their new home theirs. Still I can't help but think about those other people.
A few years ago that thought may never have crept into my mind, back then sellers were "moving up." Today however, as I read about the distraught homeowner that lost his house, and then his life the humanness of the REO market is sinking in.
**As per the updated story link, this home was in fact an auction purchase.
Tuesday, September 29, 2009
Monday, September 21, 2009
Government Will Give you 22% Toward the Purchase of a Home!!!
Great news for those buyers that may have been sitting on the fence about purchasing a home!
The Arizona Department of Housing (ADOH) will offer 22 percent in purchase assistance to qualified home buyers purchasing an eligible foreclosed home in the state. ADOH provides help in the form of a deferred second mortgage loan for purchase assistance.
There are a few qualifying factors, the first of which is that the property that you are purchasing MUST be a VACANT single family home, townhome or condo that has been foreclosed on. Here are a few other qualifiers:
I would be happy to help you locate a home and refer you to a lender that can assist you with getting qualified. Please contact us at (480) 393-0434 for more information!!!
The Arizona Department of Housing (ADOH) will offer 22 percent in purchase assistance to qualified home buyers purchasing an eligible foreclosed home in the state. ADOH provides help in the form of a deferred second mortgage loan for purchase assistance.
There are a few qualifying factors, the first of which is that the property that you are purchasing MUST be a VACANT single family home, townhome or condo that has been foreclosed on. Here are a few other qualifiers:
- The household must have a gross income (the total income before taxes, health care costs, social security, etc.) of no greater than 120 percent of the average median income for the county they want to purchase a foreclosed house in.
- If you own a residence, you must be leasing your primary residence at least 12 months before applying for the program.
- You must use a lender from ADOH's participating lender list.
- You must attend and complete an eight-hour Homebuyer Education Class provided by one of the ADOH participating homebuyer counseling agencies. (A list will be provided by your lender once you begin the process.)
- The property you purchase must be your primary residence.
- Maximum debt-to-income ratio is 31/43. (Check with your lender to determine if you are eligible.)
I would be happy to help you locate a home and refer you to a lender that can assist you with getting qualified. Please contact us at (480) 393-0434 for more information!!!
Wednesday, September 16, 2009
Mortgage Problems Affecting Americans' Credit Scores
The article below appeared this week in the LA times. I thought that this would be a great opportunity to remind everyone that making a decision regarding your home should be a very well thought out and difficult process. However, I would also like to point out that there are varying degrees of impact to your credit scores. For instance, a loan modification is better than a short sale, and a short sale is better than a foreclosure. I would always recommend that you discuss and pursue those options in the order in which they cause the least impact. Something else to keep in mind is that if you take too long on the loan modification option, your time is very limited for pursuing a short sale with your lender...so keep that in mind as well.
Now for the article from the LA Times...
A scoring company created by the three national credit bureaus -- Equifax, Experian and TransUnion -- has some eye-opening numbers. VantageScore Solutions, whose risk-prediction scores are now being used by some of the largest mortgage companies and banks, has found that the way consumers handle their mortgage problems can have profound effects on their credit scores.
For example, loan modifications that roll late payments and penalties into the principal debt owed on the house can actually increase borrowers' scores modestly. Refinancings of underwater, negative-equity mortgages -- which the Obama administration's Making Home Affordable program offers through government-controlled Fannie Mae and Freddie Mac -- may have little or no negative effect on scores, even though the homeowners might have been tottering on the edge of serious delinquency before refinancing.
The Vantage credit score, the primary competitor to the long-dominant FICO credit score, rates borrowers on a scale range of 501 (subprime, the highest risk) to 990 (super-prime, the lowest risk). Unlike Fair Isaac Corp.'s FICO scoring system, whose scores can vary by 50 to 100 points based on which bureau supplied the underlying credit data, Vantage scores are about the same for each consumer.
When homeowners negotiate a short sale with lenders, they sometimes assume that there will be relatively little effect on their scores. After all, the loan was successfully paid off, there was no foreclosure, and the lender voluntarily agreed to accept a lower balance than was owed.
But according to VantageScore researchers, short sales can trigger big drops in credit scores. Sarah Davies, senior vice president of analytics, said a homeowner with an excellent score of 862 might plummet 120 to 130 points after a short sale.
Although it's true the lender may lose less money through a short sale compared with a foreclosure, "it's still a derogatory event," Davies said. The full debt was not repaid and the lender lost money.
What happens when borrowers walk away from their mortgage debts altogether -- the so-called strategic defaults that have become commonplace in some large markets such as in California? They should expect 140- to 150-point hits to their scores, plus negative marks on their credit bureau files for as long as seven years.
People who file for bankruptcy protection covering all their debts (mortgage, credit cards, auto loans, etc.) will get hit with an average 355- to 365-point drop in their scores. Bankruptcies remain on borrowers' credit bureau files for 10 years.
With all the mortgage delinquencies, short sales and foreclosures experienced by U.S. consumers in the last couple of years, has there been a deterioration of average scores across the board? Absolutely.
For example, roughly 36.6 million of the 213 million consumers tracked by the three national credit bureaus in the first quarter of 2008 had Vantage scores above 900 -- the super-prime credit rung. That select group represented 17.2% of the country's consumers.But by the end of the second quarter of this year, just 15.4% -- 33.3 million out of 216.9 million individuals' files -- were left among the elite. By credit industry standards, that's huge.
More Americans' scores are slipping into the worst credit category as well. In the third quarter of 2006, 34.4 million consumers were in the lowest segment -- 16.6% of 206.9 million individuals. But by the second quarter of this year, 18.3% of all files were in that category -- 39.8 million consumers out of 216.9 million.
Most of these changes -- fewer people with excellent credit, more people in the lowest brackets -- have been caused by late payments on home mortgages, serious delinquencies, short sales and foreclosures, according to VantageScore researchers.
But the bottom-line good news about scores is that homeowners facing financial stress can experience minimal dings to their credit if they contact their loan servicer or lender early in the game -- when they first discover that they may have trouble making their monthly payments -- and take the first steps toward a loan modification or refinancing.
"Start that conversation early," said Barrett Burns, a former lender and now chief executive of VantageScore. If you wait and fall several payments behind before seeking a modification, "you can lose 240 points on your score" and damage your ability to obtain credit for years.
kenharney@earthlink.net
Distributed by the Washington Post Writers Group.
Now for the article from the LA Times...
Mortgage problems are walloping Americans' credit scores
Late payments, delinquencies, short sales and foreclosures are on the rise -- and so are the number of borrowers seeing their credit scores plummet, according to scoring company VantageScore Solutions
Reporting from Washington - When you do a short sale of a house, or modify the mortgage, is there much of an effect on your credit score? What if you walk away from the mortgage altogether?A scoring company created by the three national credit bureaus -- Equifax, Experian and TransUnion -- has some eye-opening numbers. VantageScore Solutions, whose risk-prediction scores are now being used by some of the largest mortgage companies and banks, has found that the way consumers handle their mortgage problems can have profound effects on their credit scores.
For example, loan modifications that roll late payments and penalties into the principal debt owed on the house can actually increase borrowers' scores modestly. Refinancings of underwater, negative-equity mortgages -- which the Obama administration's Making Home Affordable program offers through government-controlled Fannie Mae and Freddie Mac -- may have little or no negative effect on scores, even though the homeowners might have been tottering on the edge of serious delinquency before refinancing.
The Vantage credit score, the primary competitor to the long-dominant FICO credit score, rates borrowers on a scale range of 501 (subprime, the highest risk) to 990 (super-prime, the lowest risk). Unlike Fair Isaac Corp.'s FICO scoring system, whose scores can vary by 50 to 100 points based on which bureau supplied the underlying credit data, Vantage scores are about the same for each consumer.
When homeowners negotiate a short sale with lenders, they sometimes assume that there will be relatively little effect on their scores. After all, the loan was successfully paid off, there was no foreclosure, and the lender voluntarily agreed to accept a lower balance than was owed.
But according to VantageScore researchers, short sales can trigger big drops in credit scores. Sarah Davies, senior vice president of analytics, said a homeowner with an excellent score of 862 might plummet 120 to 130 points after a short sale.
Although it's true the lender may lose less money through a short sale compared with a foreclosure, "it's still a derogatory event," Davies said. The full debt was not repaid and the lender lost money.
What happens when borrowers walk away from their mortgage debts altogether -- the so-called strategic defaults that have become commonplace in some large markets such as in California? They should expect 140- to 150-point hits to their scores, plus negative marks on their credit bureau files for as long as seven years.
People who file for bankruptcy protection covering all their debts (mortgage, credit cards, auto loans, etc.) will get hit with an average 355- to 365-point drop in their scores. Bankruptcies remain on borrowers' credit bureau files for 10 years.
With all the mortgage delinquencies, short sales and foreclosures experienced by U.S. consumers in the last couple of years, has there been a deterioration of average scores across the board? Absolutely.
For example, roughly 36.6 million of the 213 million consumers tracked by the three national credit bureaus in the first quarter of 2008 had Vantage scores above 900 -- the super-prime credit rung. That select group represented 17.2% of the country's consumers.But by the end of the second quarter of this year, just 15.4% -- 33.3 million out of 216.9 million individuals' files -- were left among the elite. By credit industry standards, that's huge.
More Americans' scores are slipping into the worst credit category as well. In the third quarter of 2006, 34.4 million consumers were in the lowest segment -- 16.6% of 206.9 million individuals. But by the second quarter of this year, 18.3% of all files were in that category -- 39.8 million consumers out of 216.9 million.
Most of these changes -- fewer people with excellent credit, more people in the lowest brackets -- have been caused by late payments on home mortgages, serious delinquencies, short sales and foreclosures, according to VantageScore researchers.
But the bottom-line good news about scores is that homeowners facing financial stress can experience minimal dings to their credit if they contact their loan servicer or lender early in the game -- when they first discover that they may have trouble making their monthly payments -- and take the first steps toward a loan modification or refinancing.
"Start that conversation early," said Barrett Burns, a former lender and now chief executive of VantageScore. If you wait and fall several payments behind before seeking a modification, "you can lose 240 points on your score" and damage your ability to obtain credit for years.
kenharney@earthlink.net
Distributed by the Washington Post Writers Group.
Monday, September 14, 2009
The Buying Process - Just Some Thoughts
Some say that the real estate market is still in the tank. I can tell you that from my perspective, the market is rockin & rollin. There are still a variety of challenges in the market, but there is a possibility out there for almost everyone!
One of the unique challenges that buyers face in this market is an interesting hybrid between homes that are overpriced, short sales that take months to close, and homes that are being bid on by multiple parties and selling for well above list price. So, how does a buyer know what situation they are in?
First and foremost, it is important to contact your Realtor to determine the history on the property that you are interested in. Ask questions like: How long has it been on the market? How many times have they changed the price? Do they have any offers? Is this a traditional sale, a short sale or a lender owned property? You will gain quite a bit of knowledge about a property through these questions, and as one of my favorite cartoons taught me --- "Knowing is half the battle!"
Secondly, be very selective in the properties that you wish to see. With over 37,000 homes currently on the market in the Phoenix metro area, there will ALWAYS be another home to look at. You can spin your wheels quite a bit and spend a lot of time out looking at multiple homes only to find out that you are not going to have a chance to get them, or that they are in such bad shape...you don't want them anyway. Work with your Realtor to set up a very refined online search. Then narrow down the search to your top 3-4 properties for the first showing. That way, your Realtor can work with you to determine your likes & dislikes and can then refine your search criteria even further.
Lastly...what happens when you find the home you love? A lot of people are confused about what the market is telling them to do with their offer. Obviously, your Realtor is going to be able to provide you with a lot of guidance as to specific market conditions in that area, any mitigating factors, etc. What I always tell my buyers is once you've looked at the comparable sales statistics in the area, weighed in things like repairs, clean-ups, lot placement, and amenities...then it really comes down to what you are comfortable paying for THAT house. Keep in mind, this ever changing market can have you spending 10% less than asking price on a home, but can also see you spending 10-20% over the asking price to ensure you get the home you are looking for. Cash investors competing with buyers who need to use financing can definitely throw a wrench into the mix. So ultimately, bid what you are comfortable paying for the particular house based on your interest level and the qualities of the home.
The current real estate market has created several great opportunities for buyers. From the $8000 tax credit for first time buyers to interest rates which are at the lowest levels we have seen in a long time...the market is prime right now for any & all buyers. Please consult your Realtor to take advantage of this fantastic time to buy (hopefully...that Realtor would be me!).
One of the unique challenges that buyers face in this market is an interesting hybrid between homes that are overpriced, short sales that take months to close, and homes that are being bid on by multiple parties and selling for well above list price. So, how does a buyer know what situation they are in?
First and foremost, it is important to contact your Realtor to determine the history on the property that you are interested in. Ask questions like: How long has it been on the market? How many times have they changed the price? Do they have any offers? Is this a traditional sale, a short sale or a lender owned property? You will gain quite a bit of knowledge about a property through these questions, and as one of my favorite cartoons taught me --- "Knowing is half the battle!"
Secondly, be very selective in the properties that you wish to see. With over 37,000 homes currently on the market in the Phoenix metro area, there will ALWAYS be another home to look at. You can spin your wheels quite a bit and spend a lot of time out looking at multiple homes only to find out that you are not going to have a chance to get them, or that they are in such bad shape...you don't want them anyway. Work with your Realtor to set up a very refined online search. Then narrow down the search to your top 3-4 properties for the first showing. That way, your Realtor can work with you to determine your likes & dislikes and can then refine your search criteria even further.
Lastly...what happens when you find the home you love? A lot of people are confused about what the market is telling them to do with their offer. Obviously, your Realtor is going to be able to provide you with a lot of guidance as to specific market conditions in that area, any mitigating factors, etc. What I always tell my buyers is once you've looked at the comparable sales statistics in the area, weighed in things like repairs, clean-ups, lot placement, and amenities...then it really comes down to what you are comfortable paying for THAT house. Keep in mind, this ever changing market can have you spending 10% less than asking price on a home, but can also see you spending 10-20% over the asking price to ensure you get the home you are looking for. Cash investors competing with buyers who need to use financing can definitely throw a wrench into the mix. So ultimately, bid what you are comfortable paying for the particular house based on your interest level and the qualities of the home.
The current real estate market has created several great opportunities for buyers. From the $8000 tax credit for first time buyers to interest rates which are at the lowest levels we have seen in a long time...the market is prime right now for any & all buyers. Please consult your Realtor to take advantage of this fantastic time to buy (hopefully...that Realtor would be me!).
Tuesday, September 8, 2009
Who Are We?
The Spectrum Group of Arizona is a multi-faceted business owned and operated by a Christian couple in the Phoenix area of Arizona. Below is a synopsis of the services we offer:
Real Estate Services: Jason Geroux works as a Realtor with PRTeam Realty Svcs. His team (The Spectrum Group) provides residential, commerical, land and property management services throughout the Phoenix area. Please contact Jason at (480) 393-0434 or email him at jasongeroux@gmail.com for more information. We sincerely appreciate your referrals.
Business Development Services: Are you a small business owner? Do you crave additional business, but cannot seem to find the time to market your business to your clients? The Spectrum Group of Arizona can market your business for you. We work on a commission only basis, so you only pay us if we find YOU new business. Please contact one of our team members at (480) 748-8620 for more information, or you can email us at spectrumgroupaz@gmail.com.
Mobile Marketing Services: The Spectrum Group of Arizona is an affiliate of BoomText (formerly Mobimark). Do you realize that over 200 million of the 260+ million cell phone users have a text messaging bundle attached to their service? Do you realize that while email only gets an approximated 10% read rate, text message marketing is recording approximately 95%? We are also showing 12-30% response rates on the marketing messages that are sent out. Imagine what this could do for your business. Consider adding text message marketing to your existing marketing plan TODAY! Contact one of our team members at (480) 748-8620 for more information, or you can email us at spectrumgroupaz@gmail.com
Event Planning & Production: The Spectrum Group of Arizona offers a team of event professionals that can help you with any & all of your special event planning needs. From event coordination to equipment rentals, from event staffing to sponsor development, The Spectrum Group of Arizona can do it all. We specialize in events from 40 people to 4000 people and offer very competitive rates. We can even do nationwide events...contact us for your no obligation consultation TODAY at (480) 748-8620!
The Spectrum Group of Arizona looks forward to serving any & all of your business & household needs. We want to be your FIRST CALL whenever a need arises. We partner with several very reputable businesses and can always provide you with a referral that you can be confident in. Please call us ANYTIME you have a need arise...at home...or at work.
Real Estate Services: Jason Geroux works as a Realtor with PRTeam Realty Svcs. His team (The Spectrum Group) provides residential, commerical, land and property management services throughout the Phoenix area. Please contact Jason at (480) 393-0434 or email him at jasongeroux@gmail.com for more information. We sincerely appreciate your referrals.
Business Development Services: Are you a small business owner? Do you crave additional business, but cannot seem to find the time to market your business to your clients? The Spectrum Group of Arizona can market your business for you. We work on a commission only basis, so you only pay us if we find YOU new business. Please contact one of our team members at (480) 748-8620 for more information, or you can email us at spectrumgroupaz@gmail.com.
Mobile Marketing Services: The Spectrum Group of Arizona is an affiliate of BoomText (formerly Mobimark). Do you realize that over 200 million of the 260+ million cell phone users have a text messaging bundle attached to their service? Do you realize that while email only gets an approximated 10% read rate, text message marketing is recording approximately 95%? We are also showing 12-30% response rates on the marketing messages that are sent out. Imagine what this could do for your business. Consider adding text message marketing to your existing marketing plan TODAY! Contact one of our team members at (480) 748-8620 for more information, or you can email us at spectrumgroupaz@gmail.com
Event Planning & Production: The Spectrum Group of Arizona offers a team of event professionals that can help you with any & all of your special event planning needs. From event coordination to equipment rentals, from event staffing to sponsor development, The Spectrum Group of Arizona can do it all. We specialize in events from 40 people to 4000 people and offer very competitive rates. We can even do nationwide events...contact us for your no obligation consultation TODAY at (480) 748-8620!
The Spectrum Group of Arizona looks forward to serving any & all of your business & household needs. We want to be your FIRST CALL whenever a need arises. We partner with several very reputable businesses and can always provide you with a referral that you can be confident in. Please call us ANYTIME you have a need arise...at home...or at work.
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