Real Estate and Beyond Blog: Arizona

ARIZONA SHORT SALE AND BEYOND MAIN WEB SITE READY TO GO

We are beefing up our short sale business here in Phoenix, Arizona. We are on a mission to help homeowners who need a short sale completed. We have developed our main web site at www.ArizonaShortSaleAndBeyond.com. We are proud to present a team of local professionals ready to assist all home owners who wish to pursue a short sale on their current residence. It was sad to me to see that 7 out of 10 people who were foreclosed upon never obtained professional assistance from a Realtor. Folks! The Real Estate and Beyond Team is here to assist.

The Real Estate and Beyond Team is here to help all Arizona home owners who are upside down in their home. We saw the growing need as 75% of all distressed properties are now short sales. We recruited an expert to handle all short sales. This individual is an expert at short sale negotiations with the banks. Sellers need a short sale pro to negotiate with the banks to make sure the deal closes so they can move on with their life. Many people will need a second chance to recover from this real estate disaster.

We have developed the following sections to make it easier to obtain information on your Arizona Short Sale

• Things you need to know
• Frequently asked questions
• Short Sale vs Foreclosure
• Mortgage Debt Relief
• Start My Short Sale Today

DO FIRST IMPRESSIONS STILL MEAN SOMETHING IN TODAY'S MODERN SOCIETY?

Do first impressions still mean something in today's modern society? Are you meeting your clients for the first time in jeans and shirt or shirt and tie? Does it really matter? Are people dressing more casual than before? Is it different for a man and woman when it comes to first impressions? What are you doing in your personal business? Personally, I believe first impressions do mean a great deal. I am very old fashioned when it comes to first impressions. I was taught that we only have one shot at impressing a person. Would you agree with this statement?

We all judge each other when meeting for the first time. People will judge the following items:

• Clothes
• Shoes
• Hair style
• Facial hair
• Nose
• Car that ones drive
• Way one speaks
• Handshake strong or weak?
• Way one walks
• Attitude negative or positive
• Knowledgeable yes or no?

Again, these are just a few of the items that we judge each other on when meeting for the first time. How are you coming across when meeting a client for the first time? National Association of Realtors state that we have about 70% chance of obtaining a client on first meeting. Also, people have stated that they would use the same agent at an outstanding rate of 81%.

What does this tell you?

It pays to make a real good impression on the first meeting.

MOLD DISCOVERED DURING KITCHEN RENOVATION

My wife and I were all excited about updating our kitchen cabinets and counter tops. It was time for a change. So, we had it all planned out and ready to install our new kitchen in April of 2010. The workers came early on a Saturday morning. We had coffee and donuts for them. They were very thankful. So, they started to do their prep work. Then, they removed the first cabinet section. It was all over from there. We discovered a puddle of water along with black mold. STOP THE PRESSES!

Here is another picture of the drywall stripped from the kitchen wall. Well, we discovered that the water was leading from the main water pipe coming into the house. The pipe was cracked about three inches from top to bottom. Luckily, my neighbor down the street is a licensed plumber for the last thirty years. He said it was an easy fix for him. So, I proceeded to call my insurance company to report the claim. They sent out their inspectors. I called my mold inspector friend to conduct mold tests to verify I had mold.

Good news was that I had mold. It was going to cost me about $2,300 to do mold remediation in the kitchen. Mold was only detected in the kitchen. The bad news was that the insurance company would not cover the claim because they said it was an extended leak. Really? I would encourage everyone to read their homeowners insurance policy. It is very interesting to see what they will cover and not cover.

Finally, we just updated our kitchen this past month. That has been our summer project for the house. We had a little delay due to the mold. We are preparing for the school year coming up in less than a month.

ARIZONA SHORT SALE MOST FREQUENTLY ASKED QUESTIONS

We have 11 million American households under water with their current mortgage. Statistics tell us 7 out of 10 people foreclosed upon never contact a professional Realtor to assist them during their time of need. Banks continue to foreclose on properties in the state of Arizona. Real estate investors continue to purchase great deals at the Arizona Trustee Sales. We can assist you with your Arizona Short Sale. We have a team of experts standing by to get the most difficult questions answered by professionals in their field such as real estate law, tax and credit restoration.

WWW.ARIZONASHORTSALEANDBEYOND.COM

What is a short sale?

A short sale is an agreement with your mortgage lender to accept less than the total amount you owe on your home and allow the property to be sold. For example, if you purchased your home for $200,000 but now it is only worth $150,000 and you must move, you could negotiate with your lender to accept the current market value as payment in full.

How do you qualify?

Nearly everyone who is currently in a negative equity situation or behind on their mortgage payments can qualify for a short sale. Generally all the bank needs to see is proof of a financial hardship and a decrease in property value. Will I have to stop making my mortgage payments before the bank will approve my short sale? You do not have to stop making payments on your home in order for the bank to approve a short sale but it does help.
In some situations, such as a relocation, you may not need to miss payments for your lender to consider a short sale.

If I am doing a short sale am I in foreclosure or pre-foreclosure?

Not necessarily - a short sale is simply requesting the bank to accept a total payoff of your loan for an amount less than what you owe. You are only in foreclosure when you receive the foreclosure notice from the bank.

Can a short sale be completed if I have a second mortgage or home equity line?

Of course. The majority of people we work with have both a 1st and 2nd mortgage or a home equity line. In this situation the 1st mortgage generally approves an amount we are allowed to offer the 2nd and we negotiate between the two. The 2nd mortgage company is accustomed to taking a much lower payoff - generally less than 10% of the total loan amount.

Who pays the real estate commission, closing costs and past due taxes and HOA dues?

Your lender will pay all of the closing costs, commissions and any outstanding HOA assessments or past due taxes when the closing takes place. Sellers are never required to come out of pocket on a short sale transaction.

Will I have to make repairs to my home?

Your property will be purchased in As-Is condition which means the buyer cannot request you to make repairs.

Why would my lender agree to do a short sale on my home?

When banks foreclose on a property it is a long and expensive process and generally means holding the property in their inventory as a non-performing asset. Banks have a limit to the amount of non-performing assets they want to hold. Once this limit is exceeded, they have strong incentives to get rid of the properties at discount prices. For a lender, agreeing to a short sale avoids many of the costs associated with the foreclosure process. Attorney's fees, delays from borrower bankruptcies, damage to the property, costs associated with resale, property tax, insurance, etc., must all be paid by the bank during a foreclosure. In a short sale scenario, the lender is able to reduce their loss by avoiding additional legal fees, repair costs and utility bills and often times selling the home faster and at a higher price.

CONTACT SHORT SALE LISTING AGENT TODAY

HOW TO USE SELF DIRECTED 401K MONEY TO INVEST IN PHOENIX REAL ESTATE MARKET

We have many people worried about their retirement monies being on Wall Street. Many people have lost up to 50% of their total investments. People are looking for alternative investments to obtain a better rate of return. What is the answer? The answer is real estate. I have many people call into my radio show wanting more information on how to use their retirement accounts to invest in real estate. We give people true checkbook control over their money.

Self Directed Retirement Plans's flexible retirement plans have the following features:

• Investment Options - with Self Directed Retirement Plans, you can invest your retirement plan in real estate, tax liens, loans, local businesses, stocks, mutual funds and a host of other options. You are only limited by your imagination! Self Directed Retirement Plans TRUE Self-Directed IRA or 401(k) offers you greater opportunity by allowing you to choose the investments that are best suited to help you meet your retirement goals.
• Checkbook Control - Self Directed Retirement Plans structures your IRA or 401(k) so that you have checkbook control over your retirement plan assets. No more begging a broker to allow you to invest your own money. You are in total control. Participate in time sensitive investments, including foreclosures and tax liens, without the time restrictions of the custodial paperwork process.
• Limited Custodial Fees- Unlike many of our competitors, Self Directed Retirement Plans's fees are not based on the size of your account or on the number of assets it holds. Regardless of the account size, our IRA clients pay the same low custodial maintenance fee of $190 per year. In addition, Self Directed Retirement Plans's structure all but eliminates transactional, asset-based and holding fees. This can save you hundreds or thousands of dollars per year (when compared to our competitors).
• Support to Succeed - With Self Directed Retirement Plans you have access to the support you need to invest confidently. Self Directed Retirement Plans and its affiliates have set up hundreds of people with their own Self-Directed retirement plan. Our tax experts are available to review any transactions you are considering for adherence to tax law guidelines.....this ensures that you don't do anything that would endanger your retirement.
• Asset Protection - In many states, IRA assets are subject to the claims of predatory creditors. If properly structured, your IRA can build a financial fortress around your hard earned wealth.
• True Diversification - Your retirement holdings can now be truly diversified in a number of different assets. No longer are you limited to only the investments your custodian offers.

We have lender who will lend up to 50% on a residential property on a nonrecourse loan. The minimum loan amount is $50,000. So, the purchase price will have to be $100,000 or more to meet the $50,000 minimum loan amount. If you have further questions, please visit my web site at www.deliateam.com or view my profile to contact me directly.

AMERICANS FORCED TO JUMP HURDLES TO OBTAIN FANNIE MAE FINANCING

Fannie Mae continues to tighten up their credit standards to make it impossible for the average American to obtain the American Dream. What is the American Dream? My grandfather would describe the American Dream to me as working hard as a man, marry the person of your dreams, begin a family and purchase a home with a white picket fence. Oh! Please do not forget Max the dog. Does this dream still exist in America? I have noticed it is becoming harder and harder to close a simple real estae transaction. Would you agree? The Average American must jump through many hurdles to obtain simple financing. Are we becoming dogs as seen in this picture?

Banks continue to tighten credit standards so that they are able to sell the loan and not get it back from Fannie Mae. Fannie Mae continues to kickback loans at record levels. All banks are responding to this action. They are forced to obtain more and more information on each buyer so they are ensuring they will not have to buy back the loan. I know many buyers are getting frustrated and just giving up. Home owners with a perfect credit scores, plenty of reserves and equity in their home are not so easily passed through the system. They are questioning items on the report from years past.

It is much easier for buyers with a standard income to obtain financing vs. self employed individuals. They are looked at differently for the past three years because most self employed individuals have tax write offs. This might question the real income a person makes being self emploed. How many Realtors cannot obtain financing at this time?

We need banks to get back to their main business-START LOANING MONEY. Banks play a major role when it comes to kick starting the economy. If it continues to become harder and harder to purchase a home, then we will be selling fewer homes. Banks possess a huge inventory of homes not even on the market at this time. We must have a balance to jump start this economy.

FIXING AND FLIPPING IN ANOTHER STATE WHERE DOES ONE START?

Where is Harry this week? I am sure many of you are missing my blog posts. Well, I have been visiting Louisville, Kentucky. I am in a small town which I will not reveal at this time. I was asked to assist on a home that needs some love. It is a beautiful property 4/2 no pool 1800+ square feet along with a full basement. Did I mention it is on a 1/3 acre lot. Yes, it is my old Kentucky home that needs some updating. Where does one start when entering a new real estate market? I have my own Real Estate and Beyond Team in Phoenix, Arizona. However, the process is still the same in any market when updating a home.

I assessed this home needs the following updates to make the home livable as a rental

• New heating/AC unit
• Landscaping trim trees, remove a few trees and shrubs and cut the grass
• Possible mold removal
• Garbage removal
• Update kitchen
• New Appliances
• Carpet and tile installation
• Find property management company

Where does one find the people to perform the work? Here is what I have done in the last week

1. ActiveRain-call the professionals in the local area
2. References from Church members
3. Craigslist
4. References from neighbors
5. Hang out at the local diner in the morning-amazing information here

I just wanted to share my experience in another part of the country. Anybody can do it. Right?

ARIZONA SHORT SALE REQUIRED DOCUMENTS FOR THE SELF EMPLOYED

We continue to assist many sellers who wish to Short Sale their Arizona home due to the recent Real Estate Bubble and the high unemployment rate. Home owners are feeling the crunch and are losing help. They do not know who to call to aid them during their time of need. Statistics are that 7 out 10 home owners who were foreclosed upon did not contact a professional Realtor. Why? The Real Estate and Beyond Team is here to assist in an Arizona Short Sale.

We have a great deal of self employed individuals here in Arizona. Are they still able to do an Arizona Short Sale on their home? Yes, we just need to collect the following paperwork from them:

• Two months bank statements all pages front and back
• Last two years 1099s or 10940s
• Profit and loss year to date from tax professional
• Hardship letter
• Authorization letter signed and dated by seller
• Recent mortgage statement
• All legal notices sent to the seller for review

The only difference we witness here would be the 1099s and a profit/loss statement from tax professional. Again, we have to paint the picture of ones financial snapshot for the bank to consider the short sale. We ensure we submit a complete package to the bank to let the bank know that the seller is serious and needs this burden lifted in order to move on with their lives.

CONTACT HARRY FOR A FREE ARIZONA SHORT SALE CONSULTATION

FANNIE MAE CRACKS DOWN ON STRATEGIC DEFAULTS

ARIZONA SHORT SALE TIMELINE TO CLOSE

PHOENIX FIX AND FLIP SOLD AT ARIZONA TRUSTEE SALE FOR $117,000 GREAT DEAL

Here was a great house being auctioned at the Arizona Trustee Sale for a Phoenix Fix and Flip project for an investor. This home was 2,966 square feet along with 5 bedrooms and 3 baths. Did I mention it was on a cul de sac and huge backyard? The opening bid on this home today was $96,910. This home sold today for $117,000 just a few minutes ago. We have solid comparative homes that sold in the same subdivision between $150-155K. All this home needed was landscaping, interior paint, appliances and a solid cleaning inside and outside. We estimated the repairs to be at $5,000. How is that for a Phoenix Fix and Flip deal?

Are you an investor that wants to purchase homes from the court house steps? Do you have a real estate team that is working for you? Do you have private money available to take advantage of these deals?

PLEASE VISIT WWW.FIXANDFLIPAHOUSE.COM TO OBTAIN FURTHER INFORMATION.

CONTACT HARRY TODAY

ARIZONA SHORT SALE CONTRACT DATE AND AGREEMENT DATE UNDERSTANDING THESE TWO DATES ARE VITAL TO SUCCESS

We are in the middle of another busy real estate season. We have bank owned properties along with Arizona Short Sale homes that are showing active in the MLS. Realtors can no longer ignore Arizona Short Sales when working with buyers. Recently, I have been educating myself when working with Arizona Short Sale homes from both the buyer side and seller side. Why? I can no longer ignore this part of the business. I see distressed homes being the majority of the business for the next three years. So, I have assembled a short sale team to assist home owners who are in need of a professional Realtor.

Fannie Mae has decided to crack down on strategic defaults. Why? They are trying to avoid more and more people from walking away from their home who can afford the mortgage payments. We have discussed a reasonable TIMELINE FOR CLOSING AN ARIZONA SHORT SALE. Also, a seller is informed on the items needed to start a short sale by collecting financials along with other information that the bank will need to consider a short sale. We need to continue from this point to obtain a successful offer on the property.

There are two important dates when it comes to an Arizona Short Sale accepted offer. This is when the buyer and seller have both signed off and agreed upon the final terms. Then, this offer is sent over to the bank to review and finalize.

CONTRACT DATE: This is the date when seller and buyer have a fully acceptable offer between two parties. This offer is sent to the bank for consideration and approval.

AGREEMENT DATE:This is the official date of the banks acceptance of the short sale offer. All contractural time periods shall commence the following day after buyer agent has received this official notice. Buyer will open escrow to beging process of closing short sale transaction.

Clarification of these two terms assists everybody in the transaction to have a successful close of escrow.