How Will a Short Sale, Foreclosure or Bankruptcy Affect Your Credit

Below is a breakdown of time frames for different types of loans (these underwriting guidelines are subject to change) and how your credit will be affected.

FHA Loans

Short sale: 3 years or less depending on certain conditions

Foreclosure: 3 years

Chapter 7 Bankruptcy: 2 years from discharge date

Chapter 13 Bankruptcy: 1 year

Conventional Loans

Short sale: 2 years with 20% down & certain additional conditions met

Deed in Lieu of Foreclosure: 2 years with 20% down & certain additional conditions met

Foreclosure: 5 years

Chapter 7 Bankruptcy: 4 years from the discharge date

Chapter 13 Bankruptcy: 2 years

VA Loans

Short Sale: No established time frame but assume at least 12 months

Foreclosure: 2 years

Chapter 7 Bankruptcy: 2 years from the discharge date

Chapter 13 Bankruptcy: 1 year

To find out if you qualify for a new loan to purchase a home in The Estates at the Spectrum, please contact your area expert realtor Leah Hamman (480) 330-76242.

To view avaiable homes in The Estates at the Spectrum, click here: 

Estates At The Spectrum, Gilbert, AZ Locals Delight in Estates At The Spectrum Gilbert AZ Houses for Sale

FHA Loan Changes Effective October 4, 2010

FHA will be making changes to its upfront and annual mortgage insurance premium structure. The changes will apply to all new FHA loans issued on or after October 4, 2010.


The changes include:
Annual MIP increases from 0.50% to:

• 0.85% of the amount borrowed with 95% LTV or below
• 0.90% of the amount borrowed with greater than 95% LTV

Upfront MIP decreases from 2.25% to

• 1.00% of the amount borrowed
  
  
  
  Example: Using a $200,000 mortgage with 3.5% down payment:

• Upfront MIP falls from $4,343 to $1,930
• Monthly MIP rises from $82 to $146

To see if you can qualify for a loan for a home in The Spectrum in Gilbert, please call your area expert realtor Leah Hamman (480) 330-6242 who can put you in touch with a knowledgeable lender at no charge.
 
To view what homes are available in Spectrum, click here:
 Spectrum Gilbert AZ Houses for Sale: A Super Investment

Arizona Restaurant Week 2010: Sept. 18th-26th

It's that time of year again for Foodies to partake in the annual tastings of Arizona Restaurant Week which kicks off this Saturday. Restaurant week is one of Arizona's most highly anticipated culinary events of the year and was developed to showcase the outstanding culinary scene throughout the state. Over 150 restaurants are participating this year including the renowned Michael Mina's Bourbon Steak, Cork, Lon's at the Hermosa, Deseo, Estate House, Olive & Ivy, Fleming's, Ruth's Chris, Durants, Ko'Sin, Modern Steak in Scottsdale, POSH, Morton's The Steakhouse, Different Pointe of View, Cielo, Melting Pot, Zinc Bistro, Top of the Rock, Roka Akor, The Keg, Salerno's Restaurant & Pizza, The Greene House, Prado, BLT Steak, The Chart House, Bloom, Bluewater Grill, Roy's, Sapporo, Talavera at Four Seasons Resort, Sushi Roku, and many more. New to 2010 is the inclusion of Gluten-free options.
The price point is either $19, $29 or $39 per person and includes a 3-course meal (excluding beverages, tax and gratuity). What a perfect way to participate in Arizona's finest fare at a special discount price. Be sure to make reservations ahead of time. To find out more, visit: http://www.arizonarestaurantweek.com/

The Town of Gilbert is showcasing two of the esteemed restaurants participating in Arizona's Restaurant Week. For available real estate in Spectrum located in Gilbert, click here:

Spectrum Gilbert AZ Houses for Sale: A Super Investment

Wells Fargo No Longer Extending Foreclosure Dates for Short Sales

Due to recent industry changes, Wells Fargo will no longer be granting any extensions for short sale close dates or postponing foreclosure/trustee sale dates. Wells Fargo will be honoring extension letters dated 9/14 or earlier, but no further extensions will be granted. Files must close by the expiration date on the original approval letter or they will be removed. If your approval expires 9/15 or 9/16, you will have 48 hours to get Wells Fargo the final HUD for approval and close.

Interested in buying a short sale, foreclosure or re-sale in the Estates At The Spectrum in Gilbert, click here:
Estates At The Spectrum, Gilbert, AZ Locals Delight in Estates At The Spectrum Gilbert AZ Houses for Sale

Mortgage Rates Beat Tax-Credit Benefits

Homebuyers today can potentially save several times more money in interest costs than buyers who took out a mortgage in early April and claimed an $8,000 homebuyer tax credit. Yet buyers, who rushed to meet the April 30 deadline for the federal tax credits, appear much less eager to borrow at the lowest interest rates in 60 years.


Mortgage applications for home purchases are 42 percent below the pace seen in April, according to the Mortgage Bankers Association. Home resales dropped 27.2 percent in July from June, according to a report Tuesday from the National Association of Realtors.
Someone taking out a $240,000 mortgage today at a 4.42 percent interest rate could save $33,287 in interest costs over the life of a 30-year loan. That's four times the $8,000 credit used by a first-time homebuyer who financed at 5.21 percent in early April.


So why aren't more people buying now?

Timing offers one explanation. Buyers earlier this year, not knowing rates would drop, took the best deal available to them at the time. That soaked up future demand, which more optimistic forecasts hold should return as lower rates persuade buyers to get off the fence. Because few people stay in a home or keep a mortgage for 30 years, the time needed for monthly mortgage savings to match the $8,000 credit is another consideration, said Cameron Findlay, chief economist of LendingTree.com. On a $240,000 mortgage, a buyer would need to stay put for almost six years for monthly mortgage-payment savings to match the upfront credit. Studies in behavioral finance support the idea that people will go for a payout upfront versus a payout spread over a long period that is worth more.

Uncertainty leads to stagnation

Given the choice between a 10 percent pay raise when inflation is 12 percent or a 4 percent raise when inflation is 2 percent, respondents almost always go for the bigger raise, even though it means they will lose ground, said Greg Salsbury, an executive vice president with Jackson National Life Distributors in Denver. Rather than seizing opportunities, many people also tend to freeze up when there is too much uncertainty. "Unemployment, the deficit and the overall economy are impacting people's decisions disproportionately," Salsbury said. "There are a lot of things in play." Some mortgage brokers and bankers argue against complicated explanations about why buyers are missing in action. "The majority of my borrowers used the $8,000 tax credit toward the down payment, and the seller paid closing costs," said Marilyn McConnell, a mortgage adviser with Cherry Creek Mortgage. Lower interest rates don't help those buyers who can't come up with the needed down payment or who are trapped in a home they can't sell without taking a loss.

Deflationary expectations

Selling at a loss is psychologically hard, even if you realize the lower payment on the next property will make up for it over time, said Denver resident Shanti Klemm. "We'd love to buy a new home, but we have to sell first. It's a Catch-22," said Klemm, who estimates her family will lose $25,000 by selling its condo.
Another more worrisome explanation is that consumers expect further declines in interest rates or home prices. A survey from real-estate website Zillow.com found that a third of homeowners thought home values in their area had more room to fall. If prices are headed lower, the rational thing to do is to wait for the better bargain. But deflationary expectations, like inflationary ones, become self-reinforcing.

During the housing boom, people bought homes because they worried that prices would rise the longer they waited. Flip that around, and people may now be waiting to buy because they expect prices to go lower.

Top 5 Reasons Homeownership Trumps Renting

The seemingly endless run of bad housing news is discouraging some potential home buyers from considering a purchase. But the truth is that the advantages of homeownership have very little to do with investment gains. The best things about owning a home have a lot more to do with personal comfort and satisfaction.
Here are five of them:

· Be your own landlord. The bank can only kick you out if you don’t pay; a landlord can be much less dependable – deciding to sell the property or choosing to live there themselves.

· Paying the principal is forced savings. Yes, it’s possible that home prices will fall further. It is also possible that your 401(k) will lose value. But over the long haul, both are likely to enjoy modest gains in value.

· Fixed-rate mortgages never rise – and eventually you pay them off. With mortgage rates at record lows, people who buy now are locking in real bargains.

· Good schools. Family-sized rentals are harder to come by in areas with excellent public schools.

· Spacious properties in pleasant neighborhoods. Sizable homes in attractive communities are almost always owned – not rented.

Different drug problem….

The other day, someone at a store in our town read that a meth lab had been found in an old farmhouse in an adjoining town & he asked this rhetorical question, “Why didn’t we have a drug problem when we were growing up?”

I replied; I had a drug problem when I was young: I was drug to church on Sunday morning. I was drug to church for weddings and funerals. I was drug to family reunions and community socials no matter the weather.

I was drug by my ears when I was disrespectful to adults. I was also drug to the woodshed when I disobeyed my parents, told a lie, brought home a bad report card, did not speak with respect, spoke ill of a teacher or preacher, or if I didn’t put forth my best effort in everything that was asked of me.

I was drug to the kitchen sink to have my mouth washed out with soap if I uttered a profanity. I was drug out to pull weeds in mom’s garden and flower beds and cockelburs out of dad’s fields. I was drug to the homes of family, friends, and neighbors to help our some poor soul who had no one to mow the yard, repair the clothesline, or chop some firewood, and if my mother had ever known that I took a single dime as a tip for this kindness, she would have drug me back to the woodshed!

Those drugs are still in my veins and they affect my behavior in everything I do, say, or think. They are stronger than cocaine, crack, or heroin; and if today’s children had this kind of drug problem, America would be a better place.

God bless the parents who drugged us!!