I will just touch on the highlights here.

First, with so many people struggling right now it was interesting to learn the following…how long do life’s “mishaps” effect credit?

Credit accounts:

• Accts paid as agreed remain for up to 10 years.
• Accts not paid as agreed remain for 7 years.

Collection accounts:

• Remain for 7 years from the original inception date of the collection

Public Records

• Chapters 7 & 11 remain for 10 years from the date filed.
• Chapter 13 –open or dismissed – remains for 10 years from the date filed.
• Unpaid tax liens remain indefinitely.
• Paid tax liens and judgments remain for up to 7 years from the release date

What is your credit score comprised of?

Payment history = 35%

Amount owed = 30% (80% is considered MAXED out or 100%)

Length of credit history – 15%

New credit = 10%

Types of credit in use (healthy mix) = 10%

The BIG question of the day however was how does a short sale affect a persons ability to obtain a new loan?

This the information we were given:

Conventional:

Deed-in-lieu of Foreclosure/Pre-Foreclosure/Short Sale

• 2 years with a max 80% max LTV ratio
• 4 years with a max 90% max LTV ratio
• 7 years – LTV ratios per eligibility matrix at the time

FHA

• Foreclosure – 3 years from completion date
• Short Sale – 3 years from completion date. Per FHA’s Mortgagee Letter 09-52, FHA financing can be obtained in less that 3 years under certain conditions. As of now this means:

1. No late payments in the last 12 months
2. Valid reason for short selling such as divorce or relocation
3. Must have been reported as paid in full at time of short sale agreement

VA

No specific information has been issued on this yet but assume foreclosure rule of 2 years.

There was much more information given in this three hour class…maybe I will write another blog about it.

THANKS to Advantage Credit, Inc. (www.advcredit.com) for all of the good info. The instructor said they can get incorrect negative information removed in a matter of day and do a rescore to help borrowers get back in the homeownership game. And he indicated that a HUGE percentage of folks out there have errors on their report. ONE thirty day late can result in a 75-100 drop in scores! WOW!

If you are looking for a GREAT agent to help with your real estate need please give me a call at 602-504-3898 or 888-897-7821 x 114. Plus, I have a GREAT search tool on my web site that gives you the ability to search the entire MLS…just like agents do. Very COOL!  Go to Metro Phoenix Homes and check it out! If you save even one home as a favorite, you will be prompted to enter contact information. If you do this…YOU can create and save as many searches as you would like. It is THE BEST MOST ACCURATE SEARCH OF OUR LOCAL MLS!!

What I have discovered is that the future of real estate is changing VERY quickly and those agents who are still doing things the way they did just a few short years ago are going to be OUT of this business…unless they make changes.

What kind of changes? Well…estimates are that 90% of homebuyers start their search on the internet. A GREAT web site that shows up in the first page of GOOGLE is imperative. And let me share with you that this is NOT an easy task. At my new company we have SUPER SMART people making SURE we are ranked high in searches.

The above shows a Google search for the very general and much used term SCOTTSDALE REAL ESTATE. Our site is www.scottsdaleparadise.com number THREE after “paid for ads”.

The average agent is not able to accomplish this on their own…at least not without some expensive help. And even then having a system in place to manage the leads that come in is a challenge.

So…not only do we have a site generating GREAT leads…we have a system that quickly gets the prospect’s information out to our agents allowing us to contact the person with relevant information within a matter of minutes. People LOVE it when I call them and they are still on our site searching!

After making contact with a prospective buyer, eXp Realty has a really slick back-end contact management system that help me keep track of who I spoke to and what we said. No more little pieces of paper with notes on them! YEA!!!

Agents who are still counting on postcards, open houses and past client referrals are rolling the dice in my opinion. Especially since MANY of my past clients are upside down in their current homes…or have lost their job and are not in a position to make a move.

Don’t get me wrong…I still intend on serving my referrals with the same top notch service I have always provided…but I just think there is a BIG world out there and a lot of folks are considering Arizona as a place to invest in real estate. I needed a way to get to them. And at eXp …I have it!

But what about the VIRTUAL part…well…that is something I am totally convinced IS the NEW WAY of handling business. With a few clicks of my mouse I can be “virtually” face to face with my broker, the CEO or THE BEST tech support guys in the industry. Why spend HOURS pulling my hair out trying to figure out how to get a picture resized to fit properly on my web site? I just jump into eXp Virtual and ask for help. And I can actually share my screen to SHOW them what I am talking about so they can assist me. SO COOL….and productive. (and by the way…part of the deal with eXp is giving agents a web site/blogging platform)

On Monday’s we have what we call X Camp where agents across the country share ideas and information. This is what that “looks” like. SO productive and FUN!

With all of these cutting edge tools I have more time to do what actually MAKES ME MONEY! Face time with clients out in the field.

Now…if you are an agent reading this I ask…”What is YOUR Brokerage doing for YOU”?

Oh…gotta run…just got another lead I need to call!

If you are looking for a GREAT agent to help with your real estate need please give me a call at 602-504-3898 or 888-897-7821 x 114. Plus, I have a GREAT search tool on my web site that gives you the ability to search the entire MLS…just like agents do. Very COOL!  Go to Metro Phoenix Homes and check it out! If you save even one home as a favorite, you will be prompted to enter contact information. If you do this…YOU can create and save as many searches as you would like. It is THE BEST MOST ACCURATE SEARCH OF OUR LOCAL MLS!!

We are very blessed to have a SUPER BRAIN named Mike Orr provide us with the Cromford Report…a daily market insight into the Phoenix metropolitan area residential re-sale real estate market.

He takes the data and breaks to down into charts and graphs that clearly illustrate the movements of the market. For example here is a series of comprehensive charts with some great data.

This chart shows the number of active listings in the Metro Phoenix Home Market in comparison to last month and last year.

Below breaks down the pending activity.

And finally a comparison of sales on a monthly and annual basis.

This is just the “tip of the iceberg” as far as data we can get from Mr. Orr. He gets really detailed as you can see in the below pre-foreclosure/short sale data chart.

This is really valuable information for agents to have in order to provide their clients with advise and direction when considering buying or selling a home in the Metro Phoenix Area.

If you are looking for a GREAT agent to help with your real estate need please give me a call at 602-504-3898 or 888-897-7821 x 114. Plus, I have a GREAT search tool on my web site that gives you the ability to search the entire MLS…just like agents do. Very COOL!  Go to Metro Phoenix Homes and check it out! If you save even one home as a favorite, you will be prompted to enter contact information. If you do this…YOU can create and save as many searches as you would like. It is THE BEST MOST ACCURATE SEARCH OF OUR LOCAL MLS!!

What do I mean by that? Well…there is a school of thought that we are not on the road to recovery based on the fact that “option ARM” loans have yet to reset. An option ARM loan is an adjustable rate mortgage with the added flexibility of making one of several possible payment every month.

Typical option ARM loans have four major types of payment options:

• Minimum Payment~Monthly payment is set for 12 months at initial interest. After that, the payment changes annually, and a payment cap limits how much it can increase or decrease each year.
• Interest-Only Payment~With this option, you can avoid deferred interest, when the minimum payment is not enough to pay the monthly interest due. The interest-only payment option is not available if the interest-only payment would be less than the minimum payment.
• Fully Amortizing 30-Year Payment~ You pay both principal and interest and keep your loan on schedule. Your payment is calculated each month based on the prior month’s loan balance and remaining loan term.
• Fully Amortizing 15-Year Payment~You can put your loan on an accelerated schedule if you can afford higher monthly payments, the 15-year payment option allows you to repay your loan twice as faster and save more than half the total interest costs of a 30-year loan.

Here is a graph showing the Option ARM  reset timeframe.

Many people think that since these have not yet reset (or recast….meaning when the loans go from negative amortization to fully amortizing) …we are in for another “dip” in the already struggling housing market. Homeowners are facing much higher mortgage payments at a time when the value of their house has plummeted. Another concern is that many homeowners are out of work. In some cases, homeowners who chose a very low starting interest rate have actually seen the overall amount of their mortgage increase—known as negative amortization—putting them even deeper in debt.

The other school of thought is that between the foreclosures, occasional sales, refis and modifications, no single wave will ever come in as big as expected.

I am hoping that the BIG wave is over and now we are just floating in the “ripples”!

Are you looking to buy or sell a home in the Phoenix Area? Please give me a call at 602-504-3898 or 888-897-7821 x114 and I will provide you excellent, friendly, knowledgeable service! Also, I have a GREAT search tool on my web site that gives you the ability to search the entire MLS…just like agents do. Very COOL!  Go to Metro Phoenix Homes and check it out! If you save even one home as a favorite, you will be prompted to enter contact information. If you do this…YOU can create and save as many searches as you would like. It is THE BEST MOST ACCURATE SEARCH OF OUR LOCAL MLS!!

Some buyer just picked out a new build in a awesome new, Green, Energy Efficient community (CLICK HERE to find out more about these homes!)  Anyway, yesterday we met at the Design Center to pick out what they wanted in their home.  They went in with a $8000 budget.  Seemed pretty suitable… NOT!  They ended up spending about $15,400.  Where did the money go?  They were very basic in their selections.  Standard flooring, wall color, lighting and so on, but they did not expect to be paying for the installation of electrical outlets, wiring for lights and ceiling fans, gas and cable hookups.  Why did a Realtor come in handy in this situation?  Because the when the husband started suggesting that he would just put in the extra lighting himself, the Realtor knew to ask about the electrical warranty and sure enough if he was to add any himself the warranty would be voided.  A Realtor is also there to assist in making good choices.  For instance… don’t purchase the flooring and ceiling fans through the Design Studio.  They are twice as expensive as picking up a fan on Craigslist or the discount isle in Home Depot.  Flooring is the same.  An outside company can come in and do the job for much less.

Last suggestion, use your Realtor to assist you in making smart resale decisions!  My best advice… Do your homework!  Get a list of all the design choices a few days before going to the Design Center.  Sit down with your family and your Realtor and go over what you need and any upgrades you want.  Walking in there blind can be a bit overwhelming and it would be better to go in with everyone on the same page.  Have your Realtor there to assist you in making upgrade choices that will increase the value of your home.  For example, maybe you can change flooring later, but upgrade the kitchen cabinets and countertops now.  After all… kitchens sale a home! 

Bottom line, go in there with someone that knows what they are doing.  Buying a new build can be a great experience but it is a big processes and it is reassuring to know that you have someone there that has your best interest in mind.

Are you shopping for real estate in the Phoenix Metro area?  I would love to help you find the perfect home!  Please contact me and I will set up an MLS search specific to your needs.  Also, I specialize in working with Veterans.  I know and understand the VA benefits and the areas most suited for Veterans to live.  Hope to hear from you soon!

Tiffany Pettit

eXp Realty

Direct Line:  602-614-6493

Email:  tiffany@tiffanypettit.com

website:  www.tiffanypettit.com

Twitter.com/tiffnphx

Facebook.com/realestatenewsforvets

Without exception…if you are using ANY OTHER SEARCH…it is via a third party and typically NOT as accurate or comprehensive as the search you can do here…GREATER PHOENIX HOME SEARCH!

I decided to purchased this product directly from FLEXMLS…our local provider as I was constantly being asked about homes that were pending or sold that my clients had found on other web sites. It was frustrating for them…and for me! I wanted to offer my clients a way to get accurate UP TO THE MINUTE data.

The added benefit is that clients can “save favorites” that I can then review and get a better idea of what they are thinking would work for them. If a client is out-of-state I can go out and take additional pictures or even do a video of homes they have viewed online over and over. The listing agent likely does not show the not-so-great features of a home. Like it backs up to a busy street and would be noisy. Or the room that has ruined carpet and smells like cats. Or maybe is across the street from a school (which can be benefit to some buyers…but not all).

So…take a look! GREATER PHOENIX HOME SEARCH! If you have any questions or concerns I can help with just shoot me an e-mail or text at 602-504-3898, or call 888-897-7821 x114…or send me an e-mail to Adele@GreaterPhoenixHomes.com.

This provides a way for current FHA homeowners to lower their interest rate with little or no out-of-pocket costs. These loans can also be made faster and with less documentation than a typical loan. And rates RIGHT NOW are at historic lows!

The most significant part of this is that there is no appraisal required! Really! This is a way of getting a “loan modification” without the hassle of dealing with the typically cumbersome process.

"No Cost" streamlines let you refinance your mortgage with no out-of-pocket expenses. One option is to let the lender pay the costs in exchange for a higher interest rate. Another option, that lets you obtain market rates is to roll the closing costs into the new loan

NOW IS THE TIME!  With the change in the FHA premiums (below) and with such great rates most borrowers payments can be significantly lowered.

Do you have a FHA loan? Does someone in your family? Let them know about this window of opportunity and have them give me a call. I will help them find a GREAT lender to guide them through this process.

Changes- In October the initial financed premium is dropping to 1%, but the monthly is going up by about .375% …this is even more of a reason to ACT NOW.

Are you looking to buy or sell a home in the Phoenix Area? Please give me a call at 602-504-3898 or 888-897-7821 x114 and I will provide you excellent, friendly knowledgeable service! Also, I have a GREAT search tool on my web site that gives you the ability to search the entire MLS…just like agents do. Very COOL!  Go to Metro Phoenix Home Search and check it out if you would like! If you save even one home as a favorite, you will be prompted to enter contact information. If you do this…YOU can create and save as many searches as you would like. It is THE BEST MOST ACCURATE SEARCH OF OUR LOCAL MLS!!

What’s different about these homes? Well…the list is long:

1. 100% Energy Star Qualified and MORE…as much as 500% MORE. Estimated 80% home energy savings (lighting, heating, cooling and water)

2. ECHO Solar Electric/Thermal System produces up to 10,000 kWh energy offset annually. A typical home consumes 20,000 kWh annually…A 50% SAVINGS!

3. High Performance Wall System…3X more efficient than a standard wall

4. Air Sealed Home and Attic. Meritage High Performance Home has a semi air conditioned attic with a SUMMER temperature of 80 F. A typical home attic here in the Phoenix, AZ area has a summer temperature greater than 160 F.

5. Energy Efficient Lighting using CFL and/or LED lighting.

6. High Performance Heating and Cooling.

7. Water Conservation. Efficient plumbing fixtures as well as weather sensing irrigation reduce water consumption.

8. Improved Air Quality using low VOC (volatile organic compounds) carpets, paints and finishes.

9. High Performance Windows.

I have been through MANY new home subdivisions over the course of my years selling homes…and I have never been moved to favor any one particular over another. And I would still make sure my clients were exposed to all of the builders in the area and price range in which they were interested . BUT…I would encourage them to make sure and visit this subdivision with me before making a decision! I LOVE GREEN!

It is a really small subdivision they took over from another builder who went out of business…so there are not many lots…and homes are going QUICKLY! Here is a picture of the subdivision map. I think they have sold NINE homes already…and their grand opening is not until next weekend! They only have about fifty-eight lots it appears…so buyers will have to jump in if they want to be a part of this.

Another thing I liked about this experience with my client is the sales rep. Brandye is REALLY high energy…and willing to help in any way she can!

Take a look at this video to see all of the GREEN features in this GREAT Community!

Click here to view the embedded video.

If you want more information about this subdivision please give me a call at 602-504-3898.

Or…if you are looking for homes in other areas… or resale homes…I have a GREAT search tool on my web site that gives you the ability to search the entire MLS…just like agents do. Very COOL!  Click here GREAT PLACE TO SEARCH FOR HOMES IN PHOENIX, AZ and check it out if you would like! If you save even one home as a favorite, you will be prompted to enter contact information. If you do this…YOU can create and save as many searches as you would like. It is THE BEST MOST ACCURATE SEARCH OF OUR LOCAL MLS!!

I answered the phone and it was a man saying he had found Bill’s phone and wanted to know where he could meet me to give it to me. I said he was mistaken and asked who I was speaking to . He refused to give his name and hung up.

My niece was home at the time as well. We were all trying to figure out how his caller ID information could show up on my phone…if it was NOT him calling. We could not come up with an answer…so we called our carrier and told them what happened. They looked at our records and confirmed that the call could not have come from his phone (we KNEW this!) and advised us to report it to the police.

While my husband was on the phone with our carrier my nieces phone rang…showing my number on called ID. Again, I had my phone in my hand and clearly the call was not coming from me. The same as the first time, the caller said he had found my phone and wanted my niece to meet him to give it to her. We told him to stop calling and that we were calling the police and hung up.

Almost immediately my phone rang and it was a friend of ours laughing. He said we had been “punked” and it is a DROID ap that allows manipulation of caller ID if you know both parties numbers….and he thought it was hilarious.

I do not think it is funny. In the right hands this could be very dangerous. Ok…he “got” us and we bought into it…whatever.

But I have a friend with two teenage daughters with cell phones. I can totally see one of them getting just such a call saying someone has found their Mom’s phone…and asking the girls to meet him at Circle K down the street so he could return it. And I can also see them thinking they are doing the right thing, with the best of intentions, and going to meet a stranger to retrieve their Mom’s phone. They have no reason to doubt that the caller has the phone…it shows up as proof on their phone’s caller ID. This scenario scares me. There is NO WAY parents can be aware of all of the ways BAD PEOPLE can get to their kids.

In arguing this with the guy that “got” us he says it can not be bad because the caller would have to have both peoples numbers to do it. Well…in this day of NO PRIVACY I think there is little consolation that this ap could not be used in unsavory ways. I would guess that many kids even have their number on the Facebook and MySpace pages.

So if both of the girls in my example above had published their numbers it would be very easy to take advantage of that knowledge and trick them to go somewhere they are potentially going to be harmed.

Additionally, taking the time of customer service reps at cell phone companies for something like this bothers me…but thinking that the customer service folks are directing people to call the police…is even more annoying. People in law enforcement DEFINIATLY have better things to do!

This is not my typical blog…nothing to do with Phoenix, Az real estate or things to do in the Valley…but I thought the more people who are aware this exists…the better.

If you are interested in buying or selling a home however…I can help!

Give me a call at 602-504-3898 or 888-897-7821 x114

Also, I have a GREAT search tool on my web site that gives you the ability to search the entire MLS…just like agents do. Very COOL!  Go to Metro Phoenix Home Search and check it out if you would like! If you save even one home as a favorite, you will be prompted to enter contact information. If you do this…YOU can create and save as many searches as you would like. It is THE BEST MOST ACCURATE SEARCH OF OUR LOCAL MLS!!

The answer to her question is that 99% of the time the commission to the buyer’s agent is paid by the seller. It happens like this. The listing agent makes an agreement with the seller to pay a defined commission to sell the home, land or whatever. The listing agent then typically enters the listing into our Multiple Listing Service (MLS) and offers compensation to bring a qualified buyer to the table. When the transaction closes…the agents are paid out of the sellers proceeds.

This is the same process with short sales and foreclosures. In these cases the banks pay agents commissions just as in a traditional sale.

There is another possibility as well however. A few times in my career my clients have found a home that is For Sale By Owner (FSBO). In this case the buyers paid me at Close Of Escrow (COE). Why would they do this? Because they were not comfortable with the process and wanted representation. Also, I am able to help with negotiating the offer, inspections, financing and getting through the closing process. The last clients I helped were prepared to pay the full asking price for the FSBO home they fell in love with. I was able to negotiate the sales price to save them $7500….AND the sellers contributed another $2000 towards the buyers closing costs! This FAR outweighed the commission they paid to me…and they got the home they wanted.

So…I learned a lesson…again. I need to make sure my clients understand the entire process…including how I get paid.

Are you looking to buy or sell a home in the Phoenix Area? I would love to help you. Just give me a call at 602-504-3898

Also, I have a GREAT search tool on my web site that gives you the ability to search the entire MLS…just like agents do. Very COOL!  Go to Metro Phoenix Home Search and check it out if you would like! If you save even one home as a favorite, you will be prompted to enter contact information. If you do this…YOU can create and save as many searches as you would like. It is THE BEST MOST ACCURATE SEARCH OF OUR LOCAL MLS!!