• Arizona is receiving more federal aid due to its foreclosure crisis. It's one of five states divvying up $1.5 billion in additional federal funds to slow foreclosures. Arizona's share is $125 million, and the state is charged with creating its own plan to spend the money.
The Arizona Department of Housing is holding a public meeting next Wednesday to discuss its proposed program for spending the money to help the many residents facing foreclosure.
The meeting will be held at 1 p.m. at Phoenix's Carnegie Library. Seating is limited, so anyone who wants to attend should contact the Housing Department to reserve a spot.
• Arizona is also receiving additional funds to help fight mortgage fraud, which has led to many foreclosures. U.S. Attorney General Eric Holder was in Phoenix on Thursday and pledged $1.7 million to help fight mortgage fraud in Arizona.
Read more:
http://kathleeninarizona.com/archive_details.php?arch=818
Wednesday, March 31, 2010
Thursday, March 25, 2010
Bank of America to lower principal balances - Read Carefully
This program will not help those that have a 30 year fixed mortgage. It is aimed at those that owe 120% of the current market value, and customers with certain adjustable rate and high interest rate mortgages (majority of which seem to be the mortgages that BOFA inherited from Countrywide).
Less than 1 percent of the country's estimated 11.3 million underwater mortgage borrowers are eligible for the program, announced Wednesday, but it could spark other lenders to do likewise, one Arizona State University finance professor said A decision by Bank of America's home loan subsidiary to begin systematically lowering the principal balance on an estimated 45,000 customers' onerous mortgage loans has left some wondering if it's the start of a broader trend.
Still, that doesn't mean Arizona homeowners should wait by the phone for their lender to call with the good news, said Tanya Wheeless, president and CEO of the Arizona Bankers Association.
"The Bank of America program is not going to help everyone, nor is it a program that is likely to be replicated," Wheeless said. "There is no groundswell."
In many cases, the bank servicing a mortgage lacks the authority to lower its principal balance, Wheeless said, because the loan itself is backed by a private investor or another bank.
But more than anything, she said, lowering a past-due borrower's loan principal just doesn't feel right to most lenders.
"It's not something that would be accepted wholesale by the lending industry," she said.
Kaufman said he would not be surprised if the mounting political pressure to help struggling homeowners forced banks out of that comfort zone.
"There is clearly a political gain to be gotten from implementing a program like this," he said.
Read more:
http://kathleeninarizona.com/archive_details.php?arch=813
Less than 1 percent of the country's estimated 11.3 million underwater mortgage borrowers are eligible for the program, announced Wednesday, but it could spark other lenders to do likewise, one Arizona State University finance professor said A decision by Bank of America's home loan subsidiary to begin systematically lowering the principal balance on an estimated 45,000 customers' onerous mortgage loans has left some wondering if it's the start of a broader trend.
Still, that doesn't mean Arizona homeowners should wait by the phone for their lender to call with the good news, said Tanya Wheeless, president and CEO of the Arizona Bankers Association.
"The Bank of America program is not going to help everyone, nor is it a program that is likely to be replicated," Wheeless said. "There is no groundswell."
In many cases, the bank servicing a mortgage lacks the authority to lower its principal balance, Wheeless said, because the loan itself is backed by a private investor or another bank.
But more than anything, she said, lowering a past-due borrower's loan principal just doesn't feel right to most lenders.
"It's not something that would be accepted wholesale by the lending industry," she said.
Kaufman said he would not be surprised if the mounting political pressure to help struggling homeowners forced banks out of that comfort zone.
"There is clearly a political gain to be gotten from implementing a program like this," he said.
Read more:
http://kathleeninarizona.com/archive_details.php?arch=813
Saturday, March 20, 2010
How to grown vegetables in Arizona - know your seasons
There is a secret to growing veggies in Arizona - knowing your seasons. Spring in Wisconsin is much like autumn in Arizona. Planting tomatoes in May can lead to heartache in July. The Midwest's planing cycle is turned on its head in the desert.
The desert has two growing seasons - Spring and Fall.
Jim Dennis, master garderner, has 10 great tips for gardening in the desert.
Read more : http://kathleeninarizona.com/archive_details.php?arch=811
The desert has two growing seasons - Spring and Fall.
Jim Dennis, master garderner, has 10 great tips for gardening in the desert.
Read more : http://kathleeninarizona.com/archive_details.php?arch=811
Friday, March 19, 2010
Chapter 13 helping Homeowners underwater to modify a home equity line
Today's Wallstreet Journal - When it's okay to walk away from your home.
Here is an interesting fact for homeowners who make too much money for Chapter 7:
Understand how a Chapter 13 might help you after all. Chapter 13 is "bankruptcy lite," for those whose income is too high to qualify for a Chapter 7. It involves a debt repayment plan (it's something like the Chapter 11 bankruptcy process used by corporations, though not as generous). In Chapter 13, the courts work out how much of your unsecured debts you can reasonably repay and set up a schedule to repay it.
Chapter 13 will not reduce the value of your primary mortgage. But make sure your counsel understands a little-known gap in the law that can help distressed homeowners who either have two mortgages, or one mortgage and a home equity line on top. If the property value has fallen so far that the primary mortgage is now under water, the courts can rule that the second mortgage is now an unsecured loan. And that, miraculously, means they can modify it. An example: You take out a $200,000 first mortgage and $50,000 second mortgage to buy a home for $250,000. The home then falls in value to $180,000. As that's not even enough to cover the first mortgage completely, the second mortgage now has no collateral against it at all. The court, in most jurisdictions, can now modify that second mortgage the way they could other unsecured debt, such as a credit card payment.That could include reducing it to zero.
Read the entire article:
http://online.wsj.com/article/SB10001424052748703795004575087843144657512.html
Here is an interesting fact for homeowners who make too much money for Chapter 7:
Understand how a Chapter 13 might help you after all. Chapter 13 is "bankruptcy lite," for those whose income is too high to qualify for a Chapter 7. It involves a debt repayment plan (it's something like the Chapter 11 bankruptcy process used by corporations, though not as generous). In Chapter 13, the courts work out how much of your unsecured debts you can reasonably repay and set up a schedule to repay it.
Chapter 13 will not reduce the value of your primary mortgage. But make sure your counsel understands a little-known gap in the law that can help distressed homeowners who either have two mortgages, or one mortgage and a home equity line on top. If the property value has fallen so far that the primary mortgage is now under water, the courts can rule that the second mortgage is now an unsecured loan. And that, miraculously, means they can modify it. An example: You take out a $200,000 first mortgage and $50,000 second mortgage to buy a home for $250,000. The home then falls in value to $180,000. As that's not even enough to cover the first mortgage completely, the second mortgage now has no collateral against it at all. The court, in most jurisdictions, can now modify that second mortgage the way they could other unsecured debt, such as a credit card payment.That could include reducing it to zero.
Read the entire article:
http://online.wsj.com/article/SB10001424052748703795004575087843144657512.html
Thursday, March 18, 2010
Changes HAFA will offer to the Short Sale process
Will the changes in the Short Sale process really change? Critics are waiting to see how the first transaction goes.
HAFA begins April 5th and will offer tighter timelines for both homeowners and banks so that the short sale process does not drag on for months. But, there is no serious punishment for banks who don't comply only small financial incentives to particiapate if a transaction is successful. The lender receives $1,000 and the homeowner receives $1,500. Unfortunately, the strict homeowner eligibility requirements linked to HAMP (loan modification program) has not changed for HAFA. Second lien holders may reject the deals. HAFA offers them no more than $3,000 in sale proceeds, no matter the size of the loan.
The good news is that under HAFA the Lenders must notify borrowers up front what the minimum buyer offer they will accept. Yeah! No more price guessing games.
AAR offers a new Short Sale Advisory for Sellers
goto: http://kathleeninarizona.com/seller-advisory-f9783.html
HAFA begins April 5th and will offer tighter timelines for both homeowners and banks so that the short sale process does not drag on for months. But, there is no serious punishment for banks who don't comply only small financial incentives to particiapate if a transaction is successful. The lender receives $1,000 and the homeowner receives $1,500. Unfortunately, the strict homeowner eligibility requirements linked to HAMP (loan modification program) has not changed for HAFA. Second lien holders may reject the deals. HAFA offers them no more than $3,000 in sale proceeds, no matter the size of the loan.
The good news is that under HAFA the Lenders must notify borrowers up front what the minimum buyer offer they will accept. Yeah! No more price guessing games.
AAR offers a new Short Sale Advisory for Sellers
goto: http://kathleeninarizona.com/seller-advisory-f9783.html
Monday, March 15, 2010
Mortgage delinquencies update
We are still seeing record high mortgage delinquencies. Unfortunately, new delinquencies are outpacing loss mitigation efforts. The loans are still not being modified quick enough to keep loans from going bad. The number of new delinquencies since January 1, 2009, still exceeds the trial loan modificaitons number by 25 percent.
The Mortgage Monitor report today from the Lender Processing Services revealed that the numbers are really staggering.
Loans delinquent/in foreclosure process: 7.5 million
REO/Post-sale foreclosure: 1 million
Loans that were current 1/1/09 and 60+ days delinquent 1/1/10: 2.5 million
I find this to be the most interesting fact:
More than 31 percent of loans that have been delinquent for six months are not yet in foreclosure, while 22.8 percent of loans delinquent for 12 months have not been moved to foreclosure status (up from 9.0 percent in 2008).
The Mortgage Monitor report today from the Lender Processing Services revealed that the numbers are really staggering.
Loans delinquent/in foreclosure process: 7.5 million
REO/Post-sale foreclosure: 1 million
Loans that were current 1/1/09 and 60+ days delinquent 1/1/10: 2.5 million
I find this to be the most interesting fact:
More than 31 percent of loans that have been delinquent for six months are not yet in foreclosure, while 22.8 percent of loans delinquent for 12 months have not been moved to foreclosure status (up from 9.0 percent in 2008).
Tuesday, March 9, 2010
Vaction in Arizona - take advantage of low resort rates
Want to enjoy some leisure time in the sun? Take advantage of low resort rates and freebies. The all-suite Pointe Hilton Resorts in Phoenix, AZ (popular with families), added breakfast for two to its $149 - $179 a night Triple Play package. It requires a 3 night minimum stay, 30 day advance purchase and payment in advance.Live local? YOU deserve a long weekend to relax , life is too short!
read more: http://www.kathleeninarizona.com/archive_details.php?arch=802
I found a great weekend getaway to Tucson, AZ at the Westin for only $116/per night
http://www.hotwire.com/
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About Kathleen Mazzocco
- Kathleen Mazzocco, Realtor in Anthem, AZ Relocation to Scottsdale, AZ
- Scottsdale, AZ, United States
- Kathleen has worked with a variety of clients and employees from across and outside of the country, and this has given her a firm grasp of all the details that need to be considered when buying a home in Scottsdale, Anthem, or other areas of Phoenix, Arizona. Kathleen is a AZ Corporate Relocation Professional, and Buyer's Agent. She doesn't just help you find the home you want, she also insures that you're settling in well and that you have all the information you need in order to enjoy the highest-quality lifestyle Arizona has to offer. Begin your plan moving to Arizona with Kathleen today. It's a buyer's market right now, so there are great opportunities for you to land the home of your dreams for much less than you ever imagined possible. Acquiring property foreclosures, short sales, and bank owned homes are ways you can save in today's market. As Certified Distressed Professional she can negotiate the best possible price and terms for you. Please browse through Kathleen's website and let Kathleen Mazzocco help you come home to Arizona,search the newest home listings at www.KathleenInAZ.com.