Pinetop White Mountain Blog

Good Morning Everyone,

Well it is another fine morning in the White Mountains of Arizona.  It is a little chilly but the sun is shining and the temps aren't too bad.  Just a little breeze that makes it feel colder than it would otherwise.

You've been hearing it for months and it is finally about to happen, interest rates are going to go up April 1st.  Probably nearly a full percentage point and maybe more.  Below is an article from REALTOR® Magazine that will explain why. 

If you have been putting off buying you need to move soon.  Not only are we going to see higher interest rates which will result in less buying power, but those all important tax credits are going to end by the end of April too.  Inflation is about to hit and with it less bang for the buck so to speak and buying power is going to be reduced. 

Real below and then get moving.  You have a great window of opportunity right now to get in on homes that are priced below the 2003 levels and interest rates are still artificially low.  Don't miss out on this prime opportunity to purchase a home at a great price and with a fantastic interest rate on your loan to keep the home affordable for you long in to the future.

Enjoy the article, and I look forward to hearing from you soon.

Sandra Paulow, Associate Broker, GRI

Your High Country REALTOR®  (928) 242-0300

Daily Real Estate News  |  January 11, 2010  |    Fed: It's Time the Market Stands on its Own April 1 will be the first day that the Federal Reserve will end its debt purchase program and allow the struggling U.S. mortgage market to operate unassisted. As a result, the Fed believes mortgage rates will rise about three-quarters of a percent to about 6 percent, Boston Fed President Eric Rosengren said Saturday. Fear of a worldwide perception that the U.S. government is simply printing money to use to purchase mortgage-related securities is a big reason the Fed has pulled back, analysts say. If that fear caused a sell-off of U.S. government bonds, it would push borrowing costs substantially higher and derail the economic recovery. "We are still in uncharted waters," Fed Vice Chairman Donald Kohn said in an unrelated speech Saturday. "We will need to be flexible and adjust as we gain experience." Source: Reuters News, Pedro Nicolaci da Costa (01/08/2010)

Good Morning Everyone,

Finally, the Banks and more importantly the FHA are listening to those of us in the Real Estate Industry who have been bemoaning the fact that a Borrower had to be behind on their mortgage before they could get any help with modification on the terms of the original contract.

Borrowers with FHA insured Mortgages who are having difficulty meeting their obligations can now contact their mortgage companies for loss mitigation assistance before they are in default on the terms of the original mortgage.

Mortgage Companies and REALTORS® have been trying to get someone in Washington to listen to us about this for a long time.  In Arizona where we use Deeds of Trust and Notes rather than Mortgages, this has been a major issue.  Under a Deed of Trust and Note, no Court action is required for the Mortgage Company to foreclose on a property.  That action only takes 90 days from the first default.  When a borrower had to be behind on the payment before they could even talk to anyone, there simply has not been enough time for the borrower to work anything out with the mortgage company in most cases.

Now we can only hope that the pressure being exerted by the Federal Government on all Mortgage holders to work harder to help the consumer that this will help stem the tide of foreclosures in our Country.  Until that bleeding can be stopped, values are going to continue to decline and more and more borrowers will feel they have no choice but to let the homes go back to the bank.  No real recovery in the economy can begin until Real Estate gets back on solid ground.

Lenders need to start working with their troubled borrowers, they need to start lending again, and we need to get Real Estate moving again.  If that happens everything else will follow close behind. 

If you have an FHA loan and are having difficulty, get in touch with your lender today and see if they aren't a little more willing to work something out with you.  It is a hassle, and it takes a lot of persistence and perseverance to get through to the Loss Mitigation Departments, but if you can break through the barriers that are in your way, you may be able to get some help with this new Legislation.

Just for fun I though you might enjoy taking a look at what the Big Snow of 2010 in the High Country of Arizona looks like.  We had nearly five feet of the White Stuff at our house.  We finally dug out yesterday so we can venture more than one foot outside the front door.  It has been an adventure.  One I hope not to repeat for a long long time.

PHOTO BELOW.

Have a wonderful Monday and good luck with your Loan Modification efforts.

Sandra Paulow, Associate Broker, GRI  (928) 242-0300

Your High Country REALTOR®

Good Morning Everyone,

For the lack of being able to do anything else today besides climb the walls I decided to give you something to think about.

I was just reading a post on Activerain and it got me to thinking about all of you out there who are bemoaning the fact that your homes are worth less than you owe on them.  My question to you is SO WHAT!

Real Estate markets go up and they go down.  Now granted this downturn has been more severe than those of the past but Real Estate always recovers.  It may take some time for that to happen but unless you bought the property thinking to flip it in a couple of years and make your fortune, sit tight and things will get better. 

I know it may be irritating as all get out to be paying a high mortgage payment on a house that has lost value but if you sit tight for a few years until the economy improves and lending gets straightened out you will come out fine.  If you think you are better off trying to give it back to the bank or Short Sale it, you are really not thinking about it in the right light.

Consider this.  If you walk away from your mortgage and your house you won't be able to buy another one for a long time.  You are going to have to rent and in renting all you are going to be doing is helping someone else with their own upside down mortgage and they are getting the Interest write off on it, not you.  You are probably going to be paying close to if not more than your own mortgage payment.  So where is the benefit?  Where are you better off without the mortgage while you ar paying someone else's mortgage. 

Rents are high and you are basically throwing your money away paying it.  You get no tax benefit, you are not building or losing equity, you are in essence lighting a match to your hard earned money. 

I know there are some of you who probably have no choice but to let the home go.  But I would strongly urge you to find another solution.  Get a second or even a third job if necessary to keep yourself afloat.  It may seem demeaning but there is always work out there it is just a matter of swallowing your pride and doing what you have to do to survive. 

My point is you are better off to sit tight if you can than to blame others for your difficulties. Walking away from your home because you are disgusted because it has lost value isn't the answer.  Hang in there, it will get better.

Enjoy your day.  I am just stuck watching it snow and snow and snow.  Maybe I'll get out of the house someday!

Sandra Paulow, Associate Broker, GRI

Your High Country REALTOR®

(928) 242-0300

Good Evening Everyone,

If you are a First Time Homebuyer or have just sold a residence and are looking for a new home, you need to move quickly.  The $8000 tax credit for First Time Buyers and the $6500 credit for so called Move Up buyers is going to run out before too long.

Remember you only have until April 30, 2010 to enter in to to a Purchase Agreement to get in on these tax credits.  If you are a First Time Buyer or a Move Up Buyer, chances are you should qualify for an FHA Loan too.  So far, they haven't changed the Down Payment requirements for FHA loans, but they might. 

The time for Fence Sitting waiting for prices to come down is over.  You need to move now.  Sellers who have been on the market for a while will likely look at any reasonable offer right now, and there are more Foreclosures soon to hit the market.  The time is ripe to get moving before interest rates start to climb and your buying power shrinks.  Don't forget, the higher the interest, the less home you will qualify to purchase. 

Don't delay, get online and start looking.  Remember, these days it is taking on the average 60 days minimum for a sale to finalize.  If you don't move soon, you could find yourself running up against the deadline for capitalizing on these tax credits.  You know how fast time flies when you aren't looking.

So get moving, give me a call, and let me help you find your White Mountain Home. 

Sandra Paulow, Associate Broker, GRI   (928) 242-0300 

Happy New Year Everyone!

Well, 2009 is finally over.  Santa has returned to his North Pole home for another year, and we are ready to get on with business.  At least I am.  As a Real Estate Professional I find the Holidays while enjoyable are also frustrating.  It is absolutely impossible to get anything done for two weeks.  No matter what it is the person you need to talk to just left on vacation, is off for the day, or will be back after the First of the Year.  Thank goodness all that is over now and frankly I can cheerfully say goodbye to 2009 as well.

So, what to expect in the New Year? 

First:  I know we are going to see higher interest rates.  2009 ended above 5% for the first time in a long time and everything I am reading says they will be above 6% before long.  So if you are thinking about buying you need to do it quickly now before your dream house is out of reach because the interest rate on the loan is going to be higher. 

Keep in mind too that the tax credits are only good on properties placed in escrow before April 30th.  That may seem like it is a way off but with loans taking upward of 60 to 90 days to close right now, it really isn't that far away.

Second:  Tougher Short Sale guidelines.  Yes, the good ol' US Government has come out with some very strict new guidelines for Short Sales.  If is isn't your primary residence you may be out of luck in trying to do a short sale.  Arizona is one of the few States that has an Anti-deficiency Statue that prevents your lender from coming after you for the difference between your Short Sale Price and the actual balance owed.  In 2009 legislators in Arizona tried to get that changed and they actually succeeded for a Short Time.  But, it was a badly written law and it was rescinded in Sept. '09.  It will come again though so be prepared for changes in the Short Sale and Foreclosure markets too.

Third:  Less inventory to choose from but in most areas prices will continue to fall for a while yet.  Oh I know we said a while ago that was going to stop but with the lenders being again allowed to move forward with their shadow inventory of foreclosures, you will see more of them.  The difference I think will be that they won't priced at Bargain Basement lows any longer.  The lenders learned their lesson there in 2009 when they flooded the market with millions of foreclosures all at the same time and drove values in to the ground. 

Fourth:  Loan originators will now have to be licensed in the State where they work.  This is a good thing because now they will be held accountable for their work and there will be some recourse for potential borrowers who are treated unfairly.  How enforcement will be handled is up to the individual State.

Fifth:  A New Good Faith Estimate that will delay processing of your new loan for three days while you have a chance to review the numbers.  This is mandated by the changes in the RESPA rules in Washington and will create further delays in loan processing.  Add to that the HVCC is still in force and you have more delays just getting through the initial work involved in processing a new loan. 

So you ask, what is the good new?  I'm not sure there is a lot of it.  2010 is going to present a whole new set of challenges for potential Buyers and Sellers.  As a Real Estate Professional I can only say that despite all the difficulties in the Real Estate and Mortgage Industries today, it still is a good time a buy a home.  You just need to be prepared that no sale is easy these days and there will be a ton of hoops to jump through to make it happen.  We are all on a learning curve in this "New Market" and while it may seem like a major hassle to buy property these days, in the end if you get the house of your dreams at a great price, it will be worth it. 

Give me a call and let me help you with the sale or purchase of your next home.  I am a true Pro and spend as much time as I can learning anything and everything I can to make things easier for you.  With over 11 years of experience as a licensed Pro and many years before that in the Industry from an Administrative point of view, I can help you over the bumps in buying or selling these days.

Have a wonderful Monday!

Sandra Paulow, Associate Broker, GRI - Your High Country REALTOR®