Sales price No. sales % of total 0-100,000 2219 39.8027% 101-200,000 2154 38.6368% 201-400,000 998 17.9013% 401-750,000 253 4.5381% 751-1,001,000 47 0.8430% 1,001-2,000,000 56 1.0045% 2,001-5,000,000 21 0.3767% 5,001-10,000,000 1 0.0179%     Feb-10 Total Closings  6635       Sales price No. sales % of total 0-100,000 2482 37.4077% 101-200,000 2557 38.5381% 201-400,000 1157 17.4378% 401-750,000 300 4.5215% 751-1,001,000 62 0.9344% 1,001-2,000,000 48 0.7234% 2,001-5,000,000 20 0.3014% 5,001-10,000,000 2 0.0301% Supply as of 3-4-2010 Total no. actives 35110 List price No. Active listings Supply (in months) 0-100,000 8034 3.42 101-200,000 12064 5.47 201-400,000 8321 7.64 401-750,000 3493 12.63 751-1,001,000 3253 59.69 1,001-2,000,000 2133 41.02 2,001-5,000,000 763 37.22 5,001-10,000,000 82 27.67 Over 10,000,000 25   List price Av. Days on market 0-100,000 85 101-200,000 107 201-400,000 135 401-750,000 188 751-1,001,000 234 1,001-2,000,000 258 2,001-5,000,000 361 5,001-10,000,000 369 Over 10,000,000 377 Summary Over 78% of sales occur in the $200k and under category Over 90% of sales occur in the $400k and under category

In summary, [...] No related posts. Related posts brought to you by Yet Another Related Posts Plugin.]]> Information provided via email from WWW.ACTIVEFUNDINGGROUP.COM

There is still an oversupply of active properties for sale (we believe the oversupply is approximately 40%) but that needs to be carefully analyzed in specific pricing segments as opposed to a “bulk number”.  The majority of oversupply exists in properties that retail for a price that exceeds the FHA upper end lending limit. We are seeing predictable and relatively short resale marketing timeframes for properties that retail for $250K and under.

Price deflation has largely occurred at this point and we are seeing modest price inflation in the $250K (retail) and under category and properties that retail for any price that is underneath the FHA upper end lending limit.

Market speed and velocity for properties that retail for a price that exceeds the FHA upper end lending limit is lethargic and will continue to be that way until there is a more competitive take out market for loan amounts over the FHA lending limit as there are only so many 800 FICO score buyers with 30% (or more) in cash for a down payment.

Prices being paid at Trustee sales recently are downright stupid if your business model is based upon an near term exit strategy, but the Bidders/Buyers attending the sale typically have little to no risk in the purchase, or the result reinforcing the largely accepted thought that it’s easy to spend someone else’s money. We believe the successful investor will “shoot with an arrow, not a shotgun” in this very competitive environment.

We are seeing some good values in the purchase of bank recovered assets from local or regional lenders, and short sale purchases.

There are still some “home runs” in the market – we see them daily but they are few in number and we see a lot more “singles and doubles”. Care and caution are the order of the day as we see it.

ACTIVE FUNDING GROUP PROVIDES ASSET BASED LOANS FOR THE PROFESSIONAL REAL ESTATE INVESTOR

WE OFFER SPEED, CONVENIENCE, DEPTH OF CAPITAL (WE DON’T RUN OUT OF MONEY)
AND AN EXTREMELY EASY TO USE ONLINE APPLICATION AND APPROVAL PROCESS.

APPLICATION TO FUNDING IN HOURS WHEN NECESSARY – LOG ON TODAY

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Hi All: Today, I’m going to show you how the government’s moratoriums and loss mitigation programs have affected foreclosures and shadow inventory.  

Shadow inventory is made up of all the properties that are in foreclosure or headed toward foreclosure that haven’t hit the market yet. There are 7 [...] No related posts. Related posts brought to you by Yet Another Related Posts Plugin.]]> An interesting email I received from Stan Van Dyk of Cash Funding Options:

Hi All:
Today, I’m going to show you how the government’s
moratoriums and loss mitigation programs have affected
foreclosures and shadow inventory.  

Shadow inventory is made up of all the properties that are
in foreclosure or headed toward foreclosure that haven’t
hit the market yet. There are 7 million homes in this shadow
inventory category.  What the government isn’t telling you
is that their moratoriums and loss mitigation programs
created a huge surge of foreclosures that are about to pop.

Their effort to decrease foreclosures has backfired.

According to the National Association of Realtors, there
were 3.6 Million unsold homes in September. You think there
are a lot of homes on the market now? There are 7 Million
more coming that the government has created in this shadow
foreclosure inventory. That’s 2 times the amount of homes
that are currently on the market now!

The government’s Making Home Affordable (MHA) modification
program and FHA’s Hope for Homeowners refinance program DO
NOT WORK for borrowers that are too wealthy or owe too much
on their homes. The number of foreclosures for high end and
luxury homes in increasing and there are a ton of luxury
homes in this shadow inventory.

So what does all of this mean to you as a real estate
investor?

Opportunity, a lot of opportunity to help high-end
homeowners by offering them a short sale while making a
killing in the process.

So when can we expect to see the surge in foreclosures from
this shadow inventory?

We are in the first phase of shadow inventory right now and
it will continue into 2010. The second wave will start in
2010 and will continue into 2011 because the national
foreclosure moratoriums ended in March and the government
intensified its HOPE NOW Alliance program as well as its
Home Affordable Modification Program (HAMP). These programs
were released in the first week of March but the problem
was that the servicers and lenders did not receive training
until the middle of June. Then, the programs had to be
updated because they weren’t effective and they became more
complicated to implement effectively.

This created a huge amount of people that have not paid
their mortgage and their houses have not been taken back by
the lenders yet. Basically the government only delayed the
inevitable foreclosure process but they made it worse
because all of the homes will be entering foreclosure at
the same time and with more debt owed on the mortgages.  

This is the ultimate short sale environment. These homes
are ripe for the picking. Many of these homeowners have thrown
their hands up and have vacated the houses. These vacant
houses are gold for you as a real estate investor.

The third phase of shadow inventory will be borrowers that
have exhausted their options on long term government
sponsored payment plans, forbearances, and failed
modifications. These will show up in 2011 and continue into
2012 as their foreclosure timelines were delayed or reset
by the latest HAMP efforts.

As you can see, the biggest mass of foreclosures hasn’t
even hit us yet!

Call us to see how you can help and profit from the the credit and housing crisis.

Thank you,
 
Stan Van Dyk  – Managing Partner
Cash Funding Options
4625 S Lakeshore Dr Tempe, AZ 85282
888-341-3802 Toll Free    602-314-1025 Office   480-516-4364 Cell
480-240-1316 e-Fax
Stan@CashFundingOptions.com  http://www.cashfundingoptions.com/

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HUD TAKES ACTION TO SPEED RESALE OF FORECLOSED PROPERTIES TO NEW OWNERS

Measure to help bring stability to home values and accelerate sale of vacant properties

 In an effort to stabilize home values and [...] No related posts. Related posts brought to you by Yet Another Related Posts Plugin.]]> I received a nice email from Michael Neill of American Alliance Mortgage Company with the following fantastic news:

Mike Neill
480-505-2202 ext 208
mike@aamcbank.com

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Article by Sorohan, Mike The Mortgage Bankers Association, in a statement submitted to a House committee, urged Congress to extend a popular home buyer tax credit set to expire next month, and to expand its scope.

MBA told the House Small Business Committee the $8,000 first-time [...] No related posts. Related posts brought to you by Yet Another Related Posts Plugin.]]> Email provided by Kathy Morrow
Branch Manager/Sr. Loan Specialist for CNN Mortgage, Inc.

Article by Sorohan, Mike
The Mortgage Bankers Association, in a statement submitted to a House committee, urged Congress to extend a popular home buyer tax credit set to expire next month, and to expand its scope.

MBA told the House Small Business Committee the $8,000 first-time home buyer tax credit passed by Congress earlier this year has had measurable benefits to both the housing market and the overall economy, and that it should be extended by at least another year and expanded so that all home buyers could use it.

“The first-time home buyer tax credit has had a stimulating impact on our economy, and MBA supports extending and expanding it so it can help more buyers and sellers,” MBA said. “As we approach the end date of the current $8,000 tax credit, we urge Congress to expand the program to include all home buyers, increase the credit up to $15,000, make the funds available for closing and extend the overall program by at least 12 months.”
 
MBA noted that the “fragile” U.S. economy is just beginning to show signs of stabilizing, but economic recovery will not be complete until the current oversupply of houses on the market has decreased.

“We should not jeopardize our recovery by letting this tax credit expire,” MBA said. “The home buyer tax credit is helping hundreds of thousands of Americans realize the American dream, and it is creating thousands of jobs that rely on homeownership. Problems in the housing industry led us into a global recession, and housing stimuli can help lead us out of the recession.”

MBA has supported the first-time home buyer tax credit since it first passed Congress as part of the Housing and Economy Recovery Act of 2008 and expanded in the American Recovery and Reinvestment Act of 2009. The Internal Revenue Service recently reported that more than 1.4 million taxpayers have benefited from the tax credit; other reports corroborate that figure. However, the credit is set to expire on Nov. 30.

In June Sen. Johnny Isakson, R-Ga., introduced S. 1230, the Home Buyer Tax Credit Act of 2009, that would increase the maximum amount of the credit from $8,000 to $15,000 and expand the current tax credit so that it applies to any buyer of any home, not just first-time buyers. The legislation also would eliminate the income caps of $75,000 for an individual and $150,000 for a couple under the current tax credit so that there is no income limit for eligibility. It would also extend the tax credit for one year from date of enactment and would still allow home buyers to claim the credit on their 2009 tax return for purchases made in 2010.

Although MBA has seen some improvement in the housing market, it said the favorable impact of the first-time home buyer credit should continue beyond the Nov. 30 expiration date.

“We have an excessive inventory of available homes in many parts of the country,” MBA said. “This glut of existing homes will continue to put downward pressure on home values, which impacts the surrounding communities and perceived homeowner wealth, which is a driver of consumer spending. In simple terms, demand is not keeping up with the current supply. MBA supports tax initiatives that would encourage home purchase activity.”

Specifically, MBA recommends the following changes to the current tax credit:

–Expand eligibility to all home buyers.While the tax credit has proven to be effective in helping first-time home buyers, a large number of Americans are thinking about moving from their current home for various reasons and might be incented by a tax credit to do it now, when the economy needs it the most.

–Increase the tax credit to a maximum of $15,000. Increase the tax credit to up to 10 percent of the home purchase price up to a maximum of $15,000. The credit may include a phase-out based upon adjusted gross income as reported on a borrower’s most recent tax returns.

–Require the tax credit to be repaid in certain instances. The borrower should repay the tax credit only if the residence is sold within the first three years (exception for employment-related moves) or in the event of a taxpayer default on any other mortgage that existed at the date the tax credit is claimed. This would discourage “buy and bail” behavior, where a borrower uses the tax credit for his or her advantage and walks away from an existing mortgage obligation.

–Tax credit should be available for settlement. If practical, facilitate the IRS sending funds claimed by the taxpayer directly to the settlement agent of the property transaction for a downpayment

–Enhancements effective immediately. Any enhancements to the program should be effective on the date of enactment and should be in effect for at least 12 months to ensure the greatest economic stimulus.

Have a Wonderful Day! 

Kathy Morrow  Branch Manager/Sr. Loan Specialist
CNN Mortgage, Inc. San Tan Mall Office ~ Coming Soon!
2151 East Broadway Road #210  Tempe, AZ 85282
Cell: 480-363-8901
E-Fax: 480-383-6141
kmorrow@cnnmortgage.com 
equal opportunity lender

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Last chance, last dance, last call. All sayings conjure up images but one thing remains constant. Miss the opportunity and it’s gone. Home loan rates recently hit all-time lows, and if you don’t act now, you could miss your chance to save thousands of dollars over the life of [...] No related posts. Related posts brought to you by Yet Another Related Posts Plugin.]]>

Treats, Not Tricks Await Those Who Act!

Last chance, last dance, last call. All sayings conjure up images but one thing remains constant. Miss the opportunity and it’s gone. Home loan rates recently hit all-time lows, and if you don’t act now, you could miss your chance to save thousands of dollars over the life of your loan!

According to Freddie Mac, interest rates recently dropped to all-time lows in some categories, and within a hair of all-time lows in others. We will likely never see rates at these levels again. If you missed the chance to refinance earlier this year, you just got a do-over. Don’t miss out a second time!

Why Act Now?
While the reasons to act now are numerous, here are just a few.

No one, not even George Washington, had a chance to borrow money at these rates…but you do!

The Federal Reserve implemented a mortgage-backed securities buying program to artificially lower rates, and that program is nearing its end. The originally scheduled end date was December 31, 2009. While this deadline has been extended the amount of purchases remains the same, which means the level of participation will wane, decreasing by half as much. Rates will be forced to levels seen before the program started, likely near 6.50% and in short order.

Inflation, while currently contained, is likely to show its ugly head as all the stimulus from Washington continues to pour into the system. The end result will be increasing inflation pressure across the board, which will cause all interest rates to rise.

Don’t Miss the Boat Here
Sydney Smith, an English clergyman from the 1800′s once said, “Regret for the things we did can be tempered with time; it is regret for the things we did not do that is inconsolable.”

It is likely that interest rates at these levels will never be seen again in our lifetime. Take advantage of them today while you still can so you’ll never have to look back and say, “I wish I had….” If you took advantage of this opportunity earlier this year, congratulations! If not, call me so we can discuss your situation.

Likewise, if you know someone else who can benefit, be it a family member, friend, or co-worker, please have them call me or let me know who they are and I will reach out to them. This could be the greatest gift you could offer someone this year.

I look forward to speaking with you soon, but if not, I hope you have a Happy Halloween! 

			Christopher Holmes Certified Mortgage Planner Prospect Mortgage 602-525-9593 ChristopherHolmes@cox.net Powered by DB Nuture  ©Copyright 2009 PlatinumPro Marketing.   Christopher Holmes Prospect Mortgage 5301 N Pima Rd #130 Scottsdale, AZ 85250

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Buyer Urgency – Interesting Article

This article says much better than I have been saying, why rates will be headed up by the end of the year and early in 2010. - Christopher

Will Homeowners and Buyers Lose $45,000?

Ann Arbor, MI August 13, [...] No related posts. Related posts brought to you by Yet Another Related Posts Plugin.]]> An email article I received from Christopher Holmes of Prospect Mortgage. Very informative stuff!

Buyer Urgency – Interesting Article

This article says much better than I have been saying, why rates will be headed up by the end of the year and early in 2010. - Christopher

Will Homeowners and Buyers Lose $45,000?

Ann Arbor, MI August 13, 2009 –
Federal Reserve officials met yesterday and issued a statement saying that their program to purchase $1.25 trillion of mortgage-backed securities will be winding down by the end of year.  “The Fed is the single largest buyer of mortgage bonds in the market today,” said Gibran Nicholas, Chairman of the CMPS Institute, an organization that certifies mortgage bankers and brokers.  “The way mortgage companies set their interest rates is by figuring out the price that Fannie Mae and Freddie Mac are willing to pay them for the mortgage.  Fannie and Freddie set their price by figuring out what investors on the bond market are willing to pay them for the Mortgage-Backed Securities (mortgage bonds) that they issue.  When the Fed stops buying mortgage-backed securities, the demand for these bonds will be much less, and mortgage rates will go higher.”

Since the Fed began purchasing mortgage bonds and intervening in the mortgage markets, interest rates on fixed rate mortgages have dropped a full percentage point below where they would be otherwise.  “Take out the Fed’s subsidy, and mortgage rates are likely to drift back up by at least one percent,” Nicholas said.  “A one percentage point increase in mortgage rates – from 5.25% to 6.25% – would cost an extra $127 per month and $45,730 in interest over the life of a $200,000 30 year mortgage.  This is exactly what could happen in 2010 once the Fed stops buying mortgage bonds.”

Fed officials have been signaling for some time that their unprecedented interventions in the mortgage markets may come to an end or even be reversed once the economy begins to improve.  “While we don’t believe the Fed will start selling mortgage bonds right away, we do believe that rates will start drifting higher in 2010 once the Fed stops purchasing mortgage bonds,” said Nicholas.  “After all, it’s not every day that the Fed spends a whopping $1.25 trillion to subsidize mortgage rates. Take out this enormous subsidy, and the average person with a $200,000 mortgage who refinances or buys a house stands to lose $45,000 over the life of their home loan.  That is why homeowners and buyers should really talk to their Certified Mortgage Planning Specialist and take advantage of this window of opportunity to refinance or buy a home while rates are still artificially low.”

Christopher Holmes, Certified Mortgage Planner
Prospect Mortgage 5301 N Pima Rd #130 Scottsdale, AZ 85250
Phone: 602-525-9593 | Toll Free: (800) 329-1817
ChristopherHolmes@cox.net www.ChristopherHolmes.web-loans.com 
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© Copyright 2009. All About News, Inc.

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