In this new economy where FHA Mortgages account for almost 75% of the new mortgages in our valley, many people do not realize that the FHA requires certain items in a home to be in working condition (or at least in the home) before they will fund the loan.  This is very important for buyers using FHA mortgages to purchase bank owned homes that are many times in less than move-in condition.   The following is a list of items REQUIRED by the FHA, and items that are not required.  Thanks to Aerick at Security Mortgage for providing the details below.

65K for this home in Buckeye!

     Buying a home used to be, for the most part, a very orderly and pleasant experience.  You might have to wait a few days to see if your offer was accepted or go back and forth a bit with the Seller, but today that process has changed for many valley home buyers, leading to frustration and sometimes seeing the buyer walking away and renting instead.

HERA, better known as the Housing and Economic Recovery Act was designed to ensure that buyers obtaining mortgages to purchase homes were given accurate diclosure information on their loan.  There are a couple of items in it that both buyers and sellers need to be aware of with this new legislation that could effect  your closing.

Centerpoint in Tempe sits vacant

The past year has not been good to new condo/townhome developers in the valley.   While some of the developments have done very well, the majority have suffered.  This article will address only those new developments that still have new units to sell, and certainly does not include every new development in this area (I would be doing research for a week!).

 A new Arizona State law places new eligibility requirements on homeowners being foreclosed as it relates to them being responsible for the amount owed to the lender verses the amount realized by the lender in a foreclosure sale.  Most owners have been protected by the current anti-deficiency law, but the new law could allow lenders to go after some foreclosed property owners to recover the difference.

44 Monroe in downtown Phoenix

     The Valley's high end condo market which had been growing very fast since the construction of the Esplanade in the Biltmore area less than ten years ago has found itself with new buildings sitting waiting for buyers, and new projects put on hold or just outright canceled for lack of money, and lack of buyer interest.
This is expected to be a temporary set back for this segment of the market, the buyers and funding will return, I just do not want to go out on a limb and say exactly how long it is going to be!   The good news for long term buyers is that prices continue to drop and sellers and builders are anxious to deal! 
 
     

     This past week has seen the signing of the Stimulus Plan and the announcement in Mesa by the President of the "Homeowner Affordability and Stability Plan".  These two plans are supposed to help the tanking housing market and stem the tide of foreclosures.  What is in these plans, and will they help you?
    

     Phoenix median home prices continued their decline in Jan 2009 falling to $136,000 from a high of $243,000 just a year earlier.  December 2008 median price in the valley was at $143,000.  This trend is expected to continue for at least a portion of 2009.

Two more valley homebuilders have filed for bankruptcy protection within the last week, including Tempe based Fulton Homes.

    Well the experts were in town this past week to tell us what 2009 and 2010 hold in store for us in the Real Estate field in Greater Phoenix.  The bottom line is this...expect continued price declines in 2009, with small (maybe 1 percent) price increases returning in 2010.