Phoenix Arizona Investment Property

This week, the Obama Administration launched its first program to offer a short sale, or a deed-in-lieu, to rescue homeowners from foreclosure, while forgiving the difference between the sale price and the amount owed on mortgages. Arizona homeowners the time to short sale your home before it becomes a Phoenix foreclosure property is now.

The program is called, Home Affordable Foreclosure Alternatives, or HAFA and is intended to reduce the need for potentially lengthy and expensive foreclosure proceedings. This will be appealing to banks and homeowners alike.

Administrators see it as a substantially better outcome than a Phoenix foreclosure sale for borrowers, investors and communities. The program's goals include minimizing the time a property may sit vacant and subject to deterioration, a problem that has plagued the worst hit neighborhoods in some states.

However its greatest benefit is to the desperate homeowner who could not be helped by the more common foreclosure prevention method: a reduction in mortgage payments. Those eligible for HAFA have either failed to qualify or were not able to finish a trial with the government's primary $75 billion Home Affordable Modification Program, or HAMP.

In a typical Phoenix short sale, the servicer allows the borrower to list and sell the mortgaged property with the understanding that the net proceeds may be less than the total amount due on the primary mortgage and any subordinate lien. But with HAFA, the difference is forgiven, and the seller can even qualify for up to $3,000 in relocation assistance. So as a seller, you walk away from your over extended property free of obligations and they give you $3000.00 to be on your way. No details on when Phoenix Short Sellers will be able to purchase again, but its in the works.

Phoenix Short Sale Homes

On the other hand, in a deed-in-lieu of foreclosure, the borrower voluntarily transfers ownership of the mortgaged property to the servicer in full satisfaction of the total amount due. So instead of having a Foreclosure on your credit report, you will be free of obligation and live your life.

In addition, the servicer will be paid $1,500 to cover administrative and processing costs for a short sale or DIL. The investor will be paid a maximum of $2,000 for allowing a portion of the short-sale proceeds to pay subordinate lien holders.

Under HAFA, a list price will be determined for the home and the seller is provided an "acceptable sale proceeds" figure - the minimum amount that the lender must receive after sales costs - from the sale of the home.

When an offer is made on the home, the seller will submit the required documentation for lender approval.

Once the sale closes, the seller will be released from all responsibilities for repaying the mortgage. In addition, the seller will receive up to $3,000 to help pay some expenses. The check will be paid by the settlement agent as part of the closing.

If there is money left over from the sale after paying the amount owed on the mortgage, plus the approved sale costs, the seller will not be eligible to receive the $3,000.

The short sale must be "at arm's length." The property cannot be listed with or sold to a relative, friend or business colleague.

The seller must also agree to share information about outstanding mortgages, liens, credit history and relocation plans with brokers and other third parties that could be involved in the transaction, including U.S. Treasury employees and its financial agents, Fannie Mae and Freddie Mac.

The HAFA servicer will follow "standard industry practice" and report to the major credit reporting agencies that the mortgage was settled for less than the full payment. Now it is just time to see how effective this program will be. If you are interested in the Short Selling Phoenix Homes, please contact RealVision Group for details.

In the latest plan from the Obama Presidential administration to assist defaulting homeowners, the focus has moved from keeping homeowners in their homes to moving them on their way out of their homes through a Short Sale.

The latest program will allow property owners to sell for less than they owe and will give them a little cash to speed them on their way. Certainly a change from many of the recent proposals and programs the government has initiated to deal with our Foreclosure crisis.

The plan aims to address the concern that millions of foreclosures could delay or even reverse the economy's tentative recovery.

This new plan will go into effect on April 5, 2010 and could encourage hundreds of thousands of delinquent borrowers and Phoenix homeowners who have not been assisted through loan modification programs to sell their houses through a short sale. RealVision group negotiates on our Short Sale homeowners behalf to where the lender will agee to a settlement of full release of all claims, liabilities and obligations and that the debtor will not be responsible for paying any deficiency related to the Phoenix Short Sale loan.

Under this new program, there would be up to three payouts aimed at bringing together the first mortgage holders, second mortgage holders and the borrower in order to streamline the short sale process.

First, the first mortgage loan servicer will get $1,000 to agree to the short sale. Then another $1,000 can go to the second mortgage holder, if there is one on the home. And finally, the government would also give $1,500 in relocation assistance to the Phoenix homeowners themselves as a boost to move along.

On the bank servicer's side of the equation, the new process is supposed to be a way to promote short sales on Phoenix homes that may eventually go to foreclosure anyway and the servicer would receive more proceeds this way.

On the borrowers' side of the equation, there is the likelihood of suffering less damage to credit ratings. In addition, they will get the lender's assurance that they will not later be sued for an unpaid mortgage balance.

And finally for the phoenix real estate market, the plan is supposed to equal fewer empty foreclosed houses waiting to be sold by banks. In short, Phoenix Investment Property buyers, the good deals are becoming scarce, call today for inventory of new Arizona Investment Homes.

In addition, under the new program, a lender will use real estate agents to determine the value of a home and thus the minimum to accept. If an offer comes in that is equal to or higher than this amount, then under the plan, the lender would in theory have to take the offer.

Of course, when a homeowner has a second or even third mortgage this can complicate the short sale scenario a bit more as well and perhaps not make it quite as easy as that. In addition, lenders will also still want homeowners to prove financial hardship as a reason to short sale their home.

How quickly this new program is implemented and how effective it will be is still yet to be determined. However, as new information becomes available Phoenix Investment Property advisors will provide updates and information accordingly. If you are interested in a Short sale of your Phoenix Home, please contact today 602-762-3636.

Attention Phoenix home buyers and Investors:

New results conclude that Arizona may perhaps be on the verge of a real estate recovery. According the new numbers from RealtyTrac, Arizona Foreclosures have dropped a couple notches on the ranking scale. Arizona has been #2 in foreclosure rate in the nation, but now the new numbers show that Arizona Foreclosure rate has dropped bringing the state to #4 in foreclosure rate for the nation. The state incurred a 10 percent July to August decrease in foreclosure activity with only 1 of 150 Arizona homes in a distressed state.

The leader board is as follows: Nevada topped the charts with 1 of every 62 homes impacted by foreclosure proceedings, Florida came in a close second and of course our neighboring state of California is a close third in home foreclosure rate.

Foreclosure rates for the nation have dropped 1% since last month, but is up 10% from this time last year. Approximatly 1 in every 357 US homes has filed for foreclosure in August. This includes default notices, scheduled home auctions and bank repos.

Although the foreclosure rate in Phoenix has dropped, we are still seeing lots of inventory to Arizona MLS. Phoenix investors can still get a great positive cash-flow producing investment property, Phoenix homebuyers can still benefit from incentives such as the $8000 first time homebuyer tax credit in Phoenix. Contact Real Vision group or register for our Greater Phoenix Bank Owned Homes hot list to stay in tune with todays hot investment opportunities.

Urgent News Release! Please see below: this lender has been a long time FHA and VA loans wholesale lender and FHA lender on manufacturer homes. If you have a loan pending on a contract - especially with a broker - check on your buyers financing today. This lender was the sponsor lender for many brokers on FHA & VA in the Phoenix Arizona and credit lines for some a few lenders.

Ocala, Florida – Taylor, Bean & Whitaker Mortgage Corp. (“TBW”) received notification on August 4, 2009 from the U.S Department of Housing and Urban Development, Freddie Mac and Ginnie Mae (the “Agencies”) that it was being terminated and/or suspended as an approved seller and/or servicer for each of those respective federal agencies. TBW has unsuccessfully sought to have the termination/suspension decisions of each of those agencies reversed. As a result of these actions, TBW must cease all origination operations effective immediately. Regrettably, TBW will not be able to close or fund any mortgage loans currently pending in its pipeline. TBW is cooperating with each of the Agencies with respect to its servicing operations and expects to continue to service mortgage loans as it restructures its business in the wake of these events. We understand that this could have a significant impact on our valued employees, customers and counterparties, and are very disappointed that a less drastic option is unavailable. For those in need of assistance with current Taylor, Bean and Whitaker pending mortgages, please contact Real Vision Group.