We are seeing multiple offer situations for many properties priced below $150,000.  The inventory of homes for sale is roughly half of what it was a year ago.  We think this will start putting upward pressure on home prices.  It will take time but a slow recovery would be much healthier than a fast one.  Interest rates are also at historical lows which combined with the current low prices will make homes affordable for many people.

Here are some links to recent articles about the housing market. 

Mortgage Rates Reach New Record Lows

Optimism Builds in Housing Market

Foreclosures Post Big Drop

For more information:

Freddie Mac Launches Winter REO Sale.

Links:

Foreclosure avoidance counseling – just select Arizona to get a list in our area – these services are free

FDIC Foreclosure Prevention Tool Kit

Amid Housing Bust, Phoenix Begins a New Frenzy - New York Times, May 23, 2009

First-time buyers grab foreclosures - AZ Republic, May 27, 2009

Phoenix’s housing bust goes boom - LA Times, May 18, 2009

Foreclosure Real Estate Purchase Contract – What to Expect

AZ Republic Article – B of A agrees to halt 2.000 Foreclosures

Where to Call for Help if You Are Struggling to Make Your Home Payments:

If you have a Bank of America Loan – 800-669-6607

For Anyone in Arizona – Arizona Mortgage Foreclosure Help Line – 877-448-1211

Mortgage Trouble? Toll-Free hotline 1-877-448-1211 available to provide you with referrals to Arizona organizations participating in the National Foreclosure Mitigation Counseling Program. There are over 20 organizations participating throughout Arizona.

Feeling the Economic Crunch? Find the Financial Help You Need. Governor Napolitano’s Family Economic Relief project provides a way to get information out to Arizonans who are facing hardship given the current economic environment. With record home foreclosures, restrictions in the credit market, and increasing gasoline and food costs, what many people need is a simple way to access information and resources for assistance in their own communities. The Governor’s Office has posted the Family Economic Relief project in an easy to navigate format through a feature link on www.az211.gov

HUD Approved Housing Counseling Agencies for AZ

They also have Tips for Avoiding Foreclosure and a lot of other valuable information. One of the first things listed, which I have heard recommended by others as well, is to call your lender and explain your situation and ask for help. If your lender can’t help, you might want to call one of the approved counseling agencies for advice. There are some new government programs to help struggling home owners and the counseling agencies should have current information about the programs.

What’s a short sale? It’s when the bank or investor accepts less money for the payoff than what is actually owed. If you owe $300,000 on your home, but it can only sell for $250,000, then you might ask the bank to take less money so that you can sell. This is better than a foreclosure, but will not keep your credit spotless.

But, you can’t just assume the bank will be willing to take less. Most banks require you to be behind in your payments due to a job loss, relocation or other significant income loss. The bank has to see the short sale of your home to be the lesser of two evils for them. It all comes down to how the bank can lose the least amount of money.

If you decide to go forth with a short sale, you’ll need to contact a REALTOR that is experienced with such sales. That agent will have to contact all your lenders. The lender that has the 1st loan. The lender that has the 2nd loan. Even the lender that helped you build a pool or other home equity addition. The agent will have to sell the bank on allowing a short sale to take place. Many times this requires talking with several bank departments. Starting with the Loss Mitigation department and moving up the ladder. The process can take several months. For most agents, this is unusual, doing so much work before the home is even on the market and the entire time you the seller are in a race with foreclosure. Who’ll win, the efficient agent selling your home or the foreclosure process?

So, if you are behind in payments, it’s no time to experiment with your nephew that just got his real estate license. You’ll first have an agent come into your home and do a market analysis. Then the agent will do an audit of your present condition credit wise. That agent will devise a plan to get your home sold before it’s sold on the courthouse steps.

If you’re in this situation, first ask your agent if they can do the market analysis and credit audit right away. If they can’t or don’t know what you’re talking about, call me.

I’ll do the market analysis and credit audit free of charge, whether you decide to use me as your agent or not. It’s even possible that you don’t need to sell short and that you can sell your home and walk away with a check in hand.