In a study that analyzes trends for total crime, Gilbert was named the safest municipality in Arizona.  Gilbert has a population of 220,000 and was ranked 24th in the entire united states.

The good news continues to pile up this year for Gilbert. In the annual heads of households survey 97 percent expressed satisfaction with the town of Gilbert.  Also, 2009 showed a great deal of community involvement.  The Gilbert days parade was revived by its citizens after being canceled due to a lack of funding, also there was an uptick in participation at community events such as block parties and watch programs.

If you would like to learn more about Gilbert AZ please visit GilbertAZ.com

For questions concerning relocating to Gilbert please contact the Reeves Team.

{ 1 comment }

The U.S. Treasury Department released a plan intended to speed up and encourage the short sale process.

A short sale is the final step a homeowner may take before giving up on a house and letting it slide into foreclosure.  However, in the past the foreclosure process has been time consuming and has not delivered the desired results.  Currently 3 out of 4 houses that start the short sale process end up failing and falling into foreclosure.  If the process does close it takes on average 8 months before the transaction is complete, this makes if frustrating not only for the seller but for the buyer as well.

The new plan A lender must give a yes or a no answer to an offer within 10 days.  It will also offer incentives to sellers buyers and lenders to complete the transaction.  The incentives include:

• Borrowers would receive $1,500 from the government in relocation expenses.
  
• Servicers receive $1,000 from the government per transaction.
  
• Second liens holders can receive up to $3,000 of the sales proceeds for releasing their liens.
  
• First lien investors can receive $1,000 from the government for signing off on payments to subordinate lien holders.
  
• Borrowers must be fully released from any further liability.

More information will be released shortly.

If you have any questions on the new program please contact Remax Alliance.

{ 1 comment }

The fastest growing home loan on the market is the FHA 203k.  in 2008 there were 10,000 FHA 203k loans, this year there will be 80,000 and next year estimates are over 500,000 FHA 203k loans will be processed.  What is this loan? and do you qualify? read the FAQ below.

What is an FHA 203k Loan?

The FHA 203k renovation loan program provides the funds for both the purchase and renovation of a home packaged into one mortgage loan. Once the home purchase is closed, the funds are held in escrow to pay for pre-determined renovation work done by approved renovation contractors.

The purchase of a house that needs repair is often a catch-22 situation, because the bank won’t lend the money to buy the house until the repairs are complete, and the repairs can’t be done until the house has been purchased.

HUD’s 203(k) program can help you overcome this obstacle by enabling you to borrow funds for the purchase or refinance of a property plus the cost of making the repairs and improvements in one mortgage. The FHA-insured 203(k) loan is provided through approved lenders nationwide and is available to owners who will occupy the home themselves.

Down payment, credit qualification, loan limits and other requirements are the same as standard FHA loans. Additional guidelines are set forth specific to 203k loans to provide for renovation of the home.

How many types of 203k loans exist?

1. The Standard 203k is intended for more complicated projects that involve structural changes, such as room additions, exterior grading and landscaping, or renovation that would prohibit you from occupying the residence. A Standard 203k is also used if your project requires engineering or architectural drawings and inspections.
2. The Streamlined 203k is designed for less extensive improvements and for projects that will not exceed a total of $35,000 in renovation and related expenses. This version does not require the use of a consultant, architect, and engineer or as many inspections as the Standard 203k. As a result, when applicable, the Streamlined 203k generally becomes the simpler, less costly option.

Does the 203k program work for Single-family homes?

No. This program is eligible for use on 1 to 4 unit buildings only.

How does the appraisal work?
The appraiser is given a copy of the contractors bid documents to identify the repairs and remodeling to be done along with their costs. The appraiser then determines the value of the home after completion, “subject to” the improvements to be made. Up to 110% of this value may be used for loan approval purposes.

Can Investors Use a 203k?

A 203k loan is for use by owner occupants, local governments or  non-profits. However, an owner occupant can use a 203k loan to purchase and renovate up to a 4-unit building as well as multi-use building in some situations.

Is there a time limit for renovation of the property?

The renovation must begin within 30 days of the closing of the loan and must be completed within the time frame established in the loan agreement. The total time for renovation must not exceed six months.

{ 0 comments }

{ 0 comments }

In a surprise move, Fannie Mae announced it will begin allowing homeowners facing foreclosure to rent back their homes for up to one year.   This program allows homeowners to pay market value for rent, a sum typically lower than the price they are currently paying for their mortgage.

“The Deed for Lease Program provides an additional option for qualifying homeowners who are facing foreclosure and are not eligible for modifications,” said Jay Ryan, Vice President of Fannie Mae. “This new program helps eliminate some of the uncertainty of foreclosure, keeps families and tenants in their homes during a transitional period, and helps to stabilize neighborhoods and communities.”

Many see this as a calculated bet from Fannie Mae, that home prices will be higher another year into the economic recovery.  The question that remains is, will it work?  Big banks got into this crisis by over leveraging themselves during the subprime mortgage days.  This move sees them once again putting all their eggs in one basket and betting on a rise in home values.

Fannie Mae will not have to list the homes as “for sale” so on their books they will show a revenue increase and will not have to write off the loss.  This will also make the ever growing shadow inventory even more complicated to dissect.  Many economists guess the number of homes that are currently foreclosed on but have not yet been listed on the market at over 7 million.  The move by Fannie Mae will significantly increase the shadow inventory, but it will be difficult to know by how much, given that the house will not technically be foreclosed on until the lease runs out.

If the bet pays off, it could be a win/win.  The homeowner will have cheap rent for at least one year, while Fannie Mae will take less of a loss when they do finally sell the house.  If however the shadow inventory starts making news and home prices decline even further, tax payers will be left with the bill. Again.

{ 0 comments }

If you were one of the many Americans, holding your breath in hopes that the New Homebuyer tax credit would be extended, your wait it over. Many had predicted that the highly successful tax credit would be extended, but last week congress made it official and changed the deadline to April 30, 2010. This means that you must have purchased a home by April 30, 2010 and must close on that purchase by June 30, 2010.

Besides the extension their are other major changes that should not be overlooked.

Expansion of the tax credit – The homebuyer credit is no longer limited to first-time homebuyers. Homebuyers who have owned a home for 5 of the last 8 years will qualify for a tax credit of as much $6,500. The 5 years of ownership must be consecutive years and the home must be the buyer’s principal residence. The credit is available for purchases made after Nov. 6, 2009 and before May 1, 2010.

Higher Income Limits – Prior to these changes the tax credit phase-out range was a Modified Adjusted Gross Income (MAGI) of $75,000 - $95,000 (for single taxpayers) and $150,000 - $170,000 (for married taxpayers). Under the new legislation, the MAGI ranges change to $125,000 - $145,000 (for single taxpayers) and $225,000 - $245,000 (for married taxpayers).

Home purchased for more than $800,000 after Nov. 6, 2009 do not qualify for either the $8,000 or the $6,500 tax credits. Also, homes purchased from in-laws after Nov. 6, 2009 do not qualify for either credit.

Dependents of taxpayers under the age of 18 do not qualify for the tax credits.

{ 0 comments }

This is a clip from the CEO of Remax Margaret Kelly explaining the extension of the 8000 Tax Credit

{ 0 comments }

The recent economic crisis has seen multiple records set, unfortunately most records are being set in the wrong direction.  The third quarter of 2009 was no exception.  The months of July, August and September saw a 5% rise in the already staggering foreclosure rate in the U.S.

There were 937,840 filings in the third quarter representing a 5% increase from the second quarter.  The foreclosure filings also represent a 23% increase from the third quarter of 2008.  The nearly 1 million foreclosures are the highest on record, this means that 1 in 136 U.S. Households is currently in foreclosure.

Arizona and California are tied for the Nations highest foreclosure rate.  1 in every 53 households in the two states were in foreclosure during the quarter.  Florida, Idaho, Utah, Georgia, Michigan, Colorado and Illinois round out the top ten respectively.

Despite high foreclosures the housing market has seen some stabilization in recent months.  Prior to the end of Q3 there had been 5 straight months of growth in the sector.  Some economists say that the stabilization may be allowing lenders to work through their excess inventory and as a side effect, increasing the total foreclosure filings.

The future still looks uncertain as many predict foreclosure filings to continue to increase into 2010.  This may continue to put a downward force on the prices in the housing market.  Some economists predict the market could fall another 10% before hitting a bottom for good.

{ 0 comments }

After a brief hiatus, one of the biggest financial advisors in American returns to Phoenix.  Not only is Dave Ramsey back in the Phoenix metropolitan area, but he has made a few upgrades to his radio show.

Dave Ramsey, who has been on the radio for years on AM stations is now making the transition into his first valley wide FM radio program Monday October 19th.   The Dave Ramsey Show will now be on KTAR 92.3 from 10 PM to 1 AM following Mac and Gaydos, and Joe Crummey.

Ramsey’s syndicated radio program The Dave Ramsey Show is promoted with a tagline that “It’s about life and money,” and it is heard on over 400 radio stations throughout the United States and Canada, as well as on XM and Sirius satellite radio. He has written numerous books. His books and broadcasts often feature a Christian perspective that reflects Ramsey’s own religious beliefs. Ramsey was named the 2009 Marconi Award winner for Network/Syndicated Personality of the Year

Remax Alliance Group and The Reeves Team are excited to hear that The Dave Ramsey Show is back.  For over 9 years we have partnered with Dave Ramsey to help family’s improve their financial situation through the purchase or sale of a home.

Glad to have you back Dave.

{ 0 comments }