I recently sold my home and was so fortunate to have Donna as my realtor. She worked harder than any other realtor I know, and I am certain that had it not be for her dedication, determination, and persistence my home would have not been sold. Donna has several years of experience with all types of listings and is very familiar with the Tucson market. I would highly recommend her to anyone who is looking at buying or selling their home. She has what it takes and will be sure to get the job done!
Natalia Reding
Thursday, August 11, 2011
Why Do Banks Seem to Prefer Foreclosures to Short Sales?
When a seller owes more to his mortgage company than his house is worth, he needs his mortgagor's approval to sell the house, because the mortgagor will not be repaid what the seller owes it from the proceeds of the sale. This is called a short sale, but there is nothing short about it.
Mortgagors are very reluctant to accept a short sale, and the request for short sale approval drags on for several months. The seller and his real estate agent must repeatedly submit the same documents because the mortgagor loses them or the documents become outdated while the seller waits for short sale approval.
Often, after keeping a seller and a prospective buyer waiting for a response to a perfectly reasonable short sale offer for several months, the mortgagor will decide to foreclose on the property. Then the investor in the mortgage, usually Fannie Mae, Freddie Mac, or HUD, lists the property for sale with a different real estate agent at a much lower price than what a buyer had offered as a short sale.
It would seem that the mortgagor would lose money by doing this, wouldn't it? Yet the banks are enjoying record profits. How do they do it?
The secret may be that the lender forecloses so they can get paid for their loss by mortgage insurance. Borrowers sometimes pay for this insurance, but sometimes the lenders pay for it themselves. Because they won't get the mortgage insurance pay out if they agree to a short sale, the lender considers the costs of foreclosure--attorney's fees, property tax, insurance, homeowner association fees, utilities, repairs, real estate commissions--and if they will net more by foreclosing, collecting the mortgage insurance, and selling the house quickly at some below market price, they will.
Lenders don't seem to have made the connection between selling foreclosed prices at low prices, and the depression of prices of nearby houses that weren't underwater until the foreclosed house sold in the neighborhood. This is the real mystery to me. It's been four years since the real estate market imploded, and the banks still don't see that their actions are preventing a housing recovery.
Mortgagors are very reluctant to accept a short sale, and the request for short sale approval drags on for several months. The seller and his real estate agent must repeatedly submit the same documents because the mortgagor loses them or the documents become outdated while the seller waits for short sale approval.
Often, after keeping a seller and a prospective buyer waiting for a response to a perfectly reasonable short sale offer for several months, the mortgagor will decide to foreclose on the property. Then the investor in the mortgage, usually Fannie Mae, Freddie Mac, or HUD, lists the property for sale with a different real estate agent at a much lower price than what a buyer had offered as a short sale.
It would seem that the mortgagor would lose money by doing this, wouldn't it? Yet the banks are enjoying record profits. How do they do it?
The secret may be that the lender forecloses so they can get paid for their loss by mortgage insurance. Borrowers sometimes pay for this insurance, but sometimes the lenders pay for it themselves. Because they won't get the mortgage insurance pay out if they agree to a short sale, the lender considers the costs of foreclosure--attorney's fees, property tax, insurance, homeowner association fees, utilities, repairs, real estate commissions--and if they will net more by foreclosing, collecting the mortgage insurance, and selling the house quickly at some below market price, they will.
Lenders don't seem to have made the connection between selling foreclosed prices at low prices, and the depression of prices of nearby houses that weren't underwater until the foreclosed house sold in the neighborhood. This is the real mystery to me. It's been four years since the real estate market imploded, and the banks still don't see that their actions are preventing a housing recovery.
Wednesday, August 10, 2011
Residential Sales Statistics
The Tucson Association of Realtors has published the Residential Sales Statistics for July.
Average sale price is $167,172, up 3.57% from June, but down 9.86% from July last year. Median sale price is $125,000, down 0.79% from June and down 16.67% from last July.
1,124 properties sold in July, a healthy 41.92% increase from last July, when the Federal housing credit giveaway program had just expired, and many buyers cancelled their purchase contracts because they couldn't get the free money.
Of the 1,124 July sales, 844, or 75%, were under $200,000.
Foreclosures accounted for 46% of the sales, and short sales were 10% of the sales.
Average sale price is $167,172, up 3.57% from June, but down 9.86% from July last year. Median sale price is $125,000, down 0.79% from June and down 16.67% from last July.
1,124 properties sold in July, a healthy 41.92% increase from last July, when the Federal housing credit giveaway program had just expired, and many buyers cancelled their purchase contracts because they couldn't get the free money.
Of the 1,124 July sales, 844, or 75%, were under $200,000.
Foreclosures accounted for 46% of the sales, and short sales were 10% of the sales.
Saturday, July 23, 2011
Is FHA Getting Out of the Condo Business?
New FHA guidelines will make it much more difficult for condominium associations to be certified for FHA financing. Without the certification, owners of condominiums will be unable to sell to buyers using FHA financing.
Prior to 2010, once a condo project was FHA-certified, the certification was good forever. Now any project that was certified prior to 2008 must apply for certification under the new, stricter rules, and must re-apply ever two years.
Until February 2010, a lender could get a "spot certification" of one unit in a non-FHA-certified project so a borrower could use an FHA loan to buy a condo. Not anymore.
According to this article in Inman News, the condo association must ensure that no more than 50% of the units can be occupied by renters. How is the condo association supposed to know this? Knock on every one's door every month, and ask who is living there?
Additionally, no more than 15% of the condo owners can be over 30 days late on their assessments. Obviously, the delinquency rate of the owners is always in flux, and it is particularly high when many of the units have been foreclosed and are owned by banks.
The biggest barrier to getting FHA certification is that the condo manager or board member filing the application is personally responsible for the accuracy of the application. The penalty for an inaccurate application is up to $1,000,000 and 30 years in prison! Who wants to take that kind of risk, when it's impossible to know that the information is accurate?
What does this mean for Tucson? If you check this list of FHA-certified condos in Tucson, only four projects have been certified since 2008. They are: Sunset Foothills Condominiums, The Villas at Hacienda del Sol, Pinnacle Canyon Condominiums, and Tierra Catalina Condominiums. All are north of River Road, in the foothills. Condo owners in these projects are probably not relying on FHA financing to get their condos sold.
The rest of the condos? Not certified. Not eligible for FHA financing. Without the FHA options, buyers will need a larger down payment and higher credit score. This reduces the pool of buyers. Few eligible buyers means lower sale prices for condos.
Prior to 2010, once a condo project was FHA-certified, the certification was good forever. Now any project that was certified prior to 2008 must apply for certification under the new, stricter rules, and must re-apply ever two years.
Until February 2010, a lender could get a "spot certification" of one unit in a non-FHA-certified project so a borrower could use an FHA loan to buy a condo. Not anymore.
According to this article in Inman News, the condo association must ensure that no more than 50% of the units can be occupied by renters. How is the condo association supposed to know this? Knock on every one's door every month, and ask who is living there?
Additionally, no more than 15% of the condo owners can be over 30 days late on their assessments. Obviously, the delinquency rate of the owners is always in flux, and it is particularly high when many of the units have been foreclosed and are owned by banks.
The biggest barrier to getting FHA certification is that the condo manager or board member filing the application is personally responsible for the accuracy of the application. The penalty for an inaccurate application is up to $1,000,000 and 30 years in prison! Who wants to take that kind of risk, when it's impossible to know that the information is accurate?
What does this mean for Tucson? If you check this list of FHA-certified condos in Tucson, only four projects have been certified since 2008. They are: Sunset Foothills Condominiums, The Villas at Hacienda del Sol, Pinnacle Canyon Condominiums, and Tierra Catalina Condominiums. All are north of River Road, in the foothills. Condo owners in these projects are probably not relying on FHA financing to get their condos sold.
The rest of the condos? Not certified. Not eligible for FHA financing. Without the FHA options, buyers will need a larger down payment and higher credit score. This reduces the pool of buyers. Few eligible buyers means lower sale prices for condos.
Tuesday, June 28, 2011
219 E 13th St
Do you love history? Oak floors and claw foot tubs? 
High ceilings and big sunny windows?
A fireplace and spacious formal dining? An urban lifestyle? This is the home for you.
Living just half a block from Amory Park, you won't miss any of the fun as downtown Tucson revitalizes herself. The Children's Museum, Temple of Music and Art, 17th Street Market & La Placita Village (Tucson Meet Yourself! Folk Festival! Outdoor Movies!). Many hip new restaurants are nearby. One block to the planned 4th Avenue Trolley to University of Arizona.
Have you seen the fabulous griffin on Scott Avenue? She's only two blocks from this sweet home.
Three bedrooms and two baths in the main part of the house.
The kitchen has been updated with stainless steel appliances and tile counters, but still retains its antique character.
If you need a home office to impress your sophisticated clients, you'll love the two room suite with private entrance, storage and bathroom.
Maybe you would like some rental income? The previous office tenant paid $420 per month for five years, but left when her lease expired in December 2011. Or you could use the suite as a master bedroom or guest quarters. The floor plan is here. This is the vintage home of your dreams. This home sold for $267,000 on March 1, 2012.
Friday, June 24, 2011
May Residential Sales Statistics
The Tucson Association of Realtors has released the Residential Sales Statistics for May.
Average sale price was $168,453. Median sale price was $127,000. There were 1,257 sales in May, only slightly below the 1,270 sales a year ago. Fortunately, number of listings is down to 5,795, down 14% from last May.
Average sale price was $168,453. Median sale price was $127,000. There were 1,257 sales in May, only slightly below the 1,270 sales a year ago. Fortunately, number of listings is down to 5,795, down 14% from last May.
3.8% Sales Tax on All Real Estate Sales!
Have you received a chain email like this:
This should help stimulate the Real Estate market! UNDER THE NEW HEALTH CARE BILL – DID YOU KNOW THAT ALL REAL ESTATE TRANSACTIONS ARE SUBJECT TO A 3.8% “SALES TAX”? YOU CAN THANK NANCY, HARRY & BARACK (AND YOUR LOCAL CONGRESSMAN) FOR THIS ONE.
IF YOU SELL YOUR $400,000 HOME, THIS WILL BE A $15,200 TAX.
Please, settle down and don't shout! The purveyors of this email can only wish the health care bill were this evil. According to factcheck.org and snopes.com, this tax only applies to people with income exceeding $200,000 per year. If the seller has lived in the house for two of the last five years, the first $250,000 in capital gains for a single person and $500,000 in capital gains for a married couple is tax free. Only the capital gains in excess of those amounts will be taxed at 3.8%.
Sales of vacation homes and investment properties are not exempt from this tax.
Most of us can't even dream about $250,000 in capital gains on the sale of our homes. This bill will generate so little tax revenue, and it has predictably created so much rumor fodder, I don't see why it was ever tacked on to the health care bill.
This should help stimulate the Real Estate market! UNDER THE NEW HEALTH CARE BILL – DID YOU KNOW THAT ALL REAL ESTATE TRANSACTIONS ARE SUBJECT TO A 3.8% “SALES TAX”? YOU CAN THANK NANCY, HARRY & BARACK (AND YOUR LOCAL CONGRESSMAN) FOR THIS ONE.
IF YOU SELL YOUR $400,000 HOME, THIS WILL BE A $15,200 TAX.
Please, settle down and don't shout! The purveyors of this email can only wish the health care bill were this evil. According to factcheck.org and snopes.com, this tax only applies to people with income exceeding $200,000 per year. If the seller has lived in the house for two of the last five years, the first $250,000 in capital gains for a single person and $500,000 in capital gains for a married couple is tax free. Only the capital gains in excess of those amounts will be taxed at 3.8%.
Sales of vacation homes and investment properties are not exempt from this tax.
Most of us can't even dream about $250,000 in capital gains on the sale of our homes. This bill will generate so little tax revenue, and it has predictably created so much rumor fodder, I don't see why it was ever tacked on to the health care bill.
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