SHOCKING BANK RESPONSE

Well we got word back from one of the banks we are working to approve a Short Sale in McDowell Mountain Ranch in Scottsdale and the answer was a big FAT NO! I was shocked! In this real estate market every sold Short Sale means one less Foreclosure. With the condition of this home is also means $20,000 pumped into our economy. Plus this buyer is paying cash. That pays off a loan with cash and puts more money into the system.

Some of you may wonder why I am so shocked the bank is rejecting our Short Sale, the why is because almost all other Short Sales we have dealt with have eventually been approved. As a matter of fact, this Short Sale was approved with a different buyer. But as we see happen so many times, by the time the short sale was approved, the buyer bought another home. The buyer told us all the way up to the week before approval they were still waiting, in reality they had already bought another home.
The disturbing part of this is WHY?????? Why was the Short Sale rejected by the bank, when property values are dropping in the Scottsdale real estate market? You are going to be shocked by the answer. One would think, maybe not a good enough deal. No, for the condition the renter left the home in, it was a market value sale. The reason was, the bank said and I quote, "this is not enough pain for the seller." You see our first loss mitigator was gone and a new one was assigned to represent the bank. The new one is pathetic. This bank is owned by, or at least funded by, the US government right now.

Isn't this suppose to be about dollars and sense?

Is this about revenge?????

Truly, the seller does not care about their credit. Their credit is already trashed and at their ages there is no desire buy homes. The seller wanted to do the right thing and try to get the home sold now and not run the market lower with another foreclosure. The seller is retired and has lost a fortune. We have been working on this since the beginning of DECEMBER.

WHO IS REALLY TO BLAME FOR THIS MESS????? This is not a hard question.

1. The Public. They refinanced out all their equity. They bought homes they could not afford. "Impostor" investors bought 10 homes with no ability to repay. They got 100% financing. They did stated income or "liar loans." They thought things would never go down. They did most of this because their loan officer told them to or that it was OK.

2. Wall Street. They bundled poor quality loans with A quality loans and claimed they were all A quality. This drove the demand for low quality loans and made them easier and with lower interest rates. Folks, this was FRAUD. Most of these guys made their fortune and have moved on.

3. The Mortgage Companies. First of all, let's get this straight, the banks new what they were doing and what would happen! Sales managers hired sales persons and told them it was OK to put everyone in a 100% loan using stated income. They make much more money on these types of loans. They sold people with $50,000 a year income or even no income 10 houses. They were the financial advisers to the public and "put them into these loans." The reality is most borrowers didn't even know what they signed.

Many have ripped on the public for buying these liar loans, stated income loans, sub prime loans, interest only loans, adjustable rate loans and what ever else is out there. Do average Americans read the one inch prospectus for each mutual fund their retirement is invested in? Do average Americans read their life, auto, health and/or disability insurance documents?
I believe the answer is NO, most Americans don't read any of that. They rely on the financial professional, as did borrowers in getting these loans.

Let's get back to my borrowers on the short sale. They are investors, and believe me we are doing plenty of short sales for investors. They put 20% down on this purchase, $200,000. There is no recourse by the bank if a foreclosure occurs. Yes, they own 10 other homes, but most are upside down. They are actually paying to keep them a float and not go into foreclosure. They sold this home because the tenant trashed the house and they did not have the $10,000 to invest into it to get it rehabbed for rental.

What makes them be treated differently than the guy that bought 10 homes with NO, I mean ZERO, money down. Then when the market changed, this example investor kept all the rent and finally at last sells them in short sales. Only to claim bankruptcy after this is all over. I will tell you the difference, this guys(example investor) greed is what caused the issue. This type of person was a big part of why we are in this mess today. Hey, most of these guys made $500k on the first round. Lived big, spent it all and then lost in the second round.

Why would a bank penalize the smarter investor? The one that actually put money into the investment. The one that is trying to do the "right thing." And penalizing in a way that will not hurt them, it will only hurt the bank. The bank will loose $20 to $50K through this action. The bank should be more concerned with THE US TAX PAYERS MONEY THEY ARE WAISTING AND LESS WITH INCREASING THE LEVEL OF HURT FOR THESE PEOPLE!

Just my opinion...Jeff Cameron

March Madness Report!

Here is the March Madness Report!

www.tokbox.com

The Mortgage Debt Relief Act of 2007

I have had many questions about mortgage forgiveness and debt relief. Below is an explanation of the Mortgage Debt Relief Act of 2007. The law was extended through 2012 to help get us through this tough time.

The Mortgage Forgiveness Debt Relief Act and Debt Cancellation
If you owe a debt to someone else and they cancel or forgive that debt, the canceled amount may be taxable.The Mortgage Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualifies for the relief.This provision applies to debt forgiven in calendar years 2007 through 2012. Up to $2 million of forgiven debt is eligible for this exclusion ($1 million if married filing separately). The exclusion does not apply if the discharge is due to services performed for the lender or any other reason not directly related to a decline in the home’s value or the taxpayer’s financial condition.More information, including detailed examples can be found in Publication 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonments. Also see IRS news release IR-2008-17.

Deficiency and Non-Deficiency loans in Arizona

Please contact your tax advisor and attorney to judge your specific situation!

A deficiency on a purchase money mortgage is not allowed on residential property if a single one-family or single two-family dwelling that is on 2.5 acres or less. See Section 33-814.

FEDERAL RESERVE TO PUMP $600 BILLION INTO HOUSING

It is about time they deal with the issue: Supply and Demand of Housing. That is it. To stop the bleeding, the supply of homes coming to the market must be slowed. Demand is back as buyers purchase homes at values not seen in nearly 5 years. Value is back. But the problem is there are still too many homes coming to the market and they are fighting for the buyers with their price. Here in Phoenix, one big problem is Short Sales. The government must stream line short sales now. Due to the long waiting period to get any type of answer, I am talking 3 to 8 months, buyers and Realtors are avoiding Short Sales. What does that do, the Short Sales must drop to outrageously low prices to attract a buyer. This drives the whole market lower! This is the $6 million dollar question; how to stabilize the Short Sales before the drive all values to ZERO! For example, single family home at Tatum and Bell, selling in the DAY for $400K, last sale $240K, NEW SHORT SALE LISTED at $175K. That is tomorrow's comp.
Just My Opinion...Jeff Cameron


Fed Unveils Plan to Support Mortgages, Consumer Credit
Topics:Interest Rates Consumers Federal Reserve Economy (Global) Economy (U.S.)
Reuters and CNBC.com 25 Nov 2008 08:27 AM ET
The U.S. Federal Reserve, in another massive life-support intervention for the U.S. financial system, Tuesday announced a $600 billion program to buy mortgage-related debt and securities and a $200 billion facility to buy consumer debt securities.
The U.S. central bank said it would buy up to $100 billion in debt issued by Fannie Mae, Freddie Mac, and the Federal Home Loan Banks, the government-sponsored mortgage finance
enterprises.
The Fed also said it would buy up to $500 billion in mortgage-backed securities backed by Fannie Mae, Freddie Mac, and Ginnie Mae.
The move is intended to strike at the heart of U.S. economic woes, the collapsed housing market.
"This action is being taken to reduce the cost and increase the availability of credit for the purchase of houses, which in turn should support housing markets and foster improved financial conditions more generally," the Fed said in a statement.
Read the rest of the story: http://www.cnbc.com/id/27906891

Short Sale 101

You see them everywhere, SHORT SALE, signs or in advertisements. Essentially a short sale is trying to sell your home for less than you owe, and having the bank agree to accept less than owed. After two years of heavy short sale activity, buyers and buyer’s agents continue to veer away from short sales. Long processing times by banks make it difficult for any buyer to hang on to the hope this approval will come. Generally this leads to the home being foreclosed on, driving the market further down.

Why do so few short sales go through? Is it the banks? Is it the buyers? Is it the Realtors?

Maybe the answer is all of the above.

With the banks, most first mortgages are actually cooperative, if they feel the home is bing sold within 92% of its value. Their problem is it takes between 90-120 days to get an approval. The bigger set-back is with the second mortgages. Due to their Mortgage Insurance requirements, they do better on the foreclosure with an insurance claim, then they do accepting a short pay-off.

Buyers are hurting short sales by not having the patience to wait for the approval from the bank. By the time the bank approves the deal, many buyers have bought another home. Most people need a place to live now, or need to move within a certain time frame. Open ended deals just lead to buyers finding another home.

Realtors are hurting short sales in two ways. One, by pricing homes way under market value to attract a buyer, only to have the bank reject the offer and two, by detouring their clients from buying a short sale. Who can blame them, with only a 20% success rate!

Unfortunately, these short sales are hurting everyone as they drive prices lower than, REO, bank owned homes, would have sold for.

ANOTHER SHORT SALE FALLS THROUGH

I can't tell you how disappointed I am to see how banks are responding to Short Sales. A Short Sale is the sale of a home where the seller owes more than the home is worth. We present the offer, comps and financial distress of the seller to the bank and hope to get it approved. This is an opportunity for the banks to sell them home without taking it back in foreclosure. Many times the bank would be able to sell the home at a higher price than after foreclosure due to condition and timing.
This short sale fall through was for one of my buyers. This is the second home that this buyer tried to purchase, that was a short sale and did not go through. The first and second mortgage companies were not apposed to the deal. It was the mortgage insurance company for the 2nd mortgage that killed it. It does not make sense. This would have been better for all involved, but the mortgage insurance company wanted the seller to sign a note in order to approve the deal. The note, had no amounts nor interest rate stated. They were going to fill those numbers in later. Who in their right mind would sign a note like that???
This also happened to one of my sellers mid summer. These are not the type of actions that will help us get through this period.

Just my Opinion...Jeff Cameron

Short Sale in McDowell Mountain Ranch ~ Sienna Canyon!

This Home is located in Sienna Canyon @ McDowell Mountain Ranch, known for large lots with a view. This home is located on a cul-de-sac street and backs to preserve, offering mountain & city light views. Enjoy the resort like backyard with fenced & heated pebbletech pool & spa, built in BBQ, grassy play area and huge covered patio. Inside find soaring vaulted ceilings and a gourmet kitchen with granite counters, cherry cabinets built in fridge, gas cook top, double ovens & huge island over looking family room with gas fireplace. Master plus den & 2 full baths down, upstairs find 3 more beds, bonus/play room, large loft, deck over looking valley. Your client will love this home, lot, yard & community. Also for lease ~ see MLS #3029879
For more information and pictures, click link below:
http://thecameronteam.com/Phoenix_Scottsdale_Arizona_McDowell_Mountain_Ranch_Dc_Ranch_listings/EC5FCE35-9471-517E-839BBD4DD99EC627.shtml

Market Review and Forecast, May 2008

I am often asked, "what is going on in the market Jeff?"

First, we know the run up in home prices in early 2005, was caused by a severe imbalance in the supply and demand of homes. Supply was practically nothing and demand was at all time highs. Many buyers/investors got sub-prime loans. They had inadequate credit or income and no method of paying the payments should the market turn or their payments increase and were hoping to continue the valuation ride up.

The balance of supply and demand has been correcting since March of 2005. Supply jumped by 40% in October of 2005. I was shocked that home prices continued to increase into 2006. This market is so huge it moves like a big oil tanker being pushed by a dingy. Prices topped out in 2006 and started to slide. But inventory levels dropped from October of 2006 to Jan 1 of 2007, by 20%. We had 34,000 homes on the market at that time. Although the outlying areas took a beating, it appeared that the pricier parts of town, Scottsdale-PV-central corridor-Awatukee-Arcadia, and parts of Phoenix made it through holding their value.

As sales increased in February of 2007, the market was looking good but shaky. We reached a high of 1,268 home sales per week at that time. Then in March, I noticed an issue. Home sales were dropping and dropping fast, down to about 850 per week.

This was the "sub-prime" meltdown. We lost all the sub-prime mortgage products. This took a big bite out of demand. Home prices in Scottsdale started to weaken, but not bad. Then in August we had "Alt A" meltdown. Another mortgage product disappears and demand drops further. Hundreds of banks went out of business. The Fed came in and pumped 3/4 of a trillion dollars into the system to stop a full world financial disaster. It worked.

I have a professional real estate coach and he told me, "sell your home and rent. You will be able to buy it back for a 30% discount in a year or two," he said. I didn't want to and didn't follow his direction. He was from Florida, and at the time I thought they got hit worse than us, it won't get that bad in Scottsdale.

As we went into the off season and holidays, home prices in Scottsdale were down, but not bad. Sellers were holding their own on the prices. I was surprised. Then spring hit. It was like all the sellers from last fall said, "I thought it was the time of year, but now it is spring and no sale, OK lower the price." Prices were dropping like rocks.

This is when the short sales and foreclosures started hitting our area and hitting it hard. There is a boat load of foreclosures coming and they will continue to push our market lower. In September we foreclosed on 1,200 homes. That was the same as all of 2006. In January, 2,000 homes were foreclosed on and then in March, it was 2,500.

I listed a home in Arcadia in October. A similar home just closed escrow for $675,000. My seller insisted on starting at that number. We have now "chased the market" down. We kept lowering, but too slowly to catch the market. Finally the home sold for $500,000. I think we are going to look at that as a great number in a few months.

Back to the market. Inventory levels are coming down right now, but slowly. Sales are increasing. Last week was the highest since before the sub-prime meltdown. We have nearly 45,000 single family homes on the market and are selling around 1,250 per week. That is an 8.3 month supply of homes. Most of the new homes coming on the market are short sales and REO(bank-owned foreclosure homes). They are usually in poor condition. So, they will have to compete for the buyers with their price. The market is getting better, but prices are probably going to continue their slide until next summer or the following spring. There will be different areas of strength. We expect to see a "U" shaped bottom, versus a "V" shaped bottom.

I looked in North Scottsdale and compared the sales to see what the numbers show.

Here is what they show:

Time Period march to may 07 oct to end 07 first Q 2008 since Q1 08 to now
Time Period Ave Price Ave Square Ft Ave Price per SF

Q2 2007 ---$832,349 ---2,878 ---$289.21

Q4 2007 ---$840,026 ---2,981 ---$281.79

Q1 2008 ---$712,444 ---2,768 ---$257.39

Q2 2008 ---$591,123 ---2,625--- $225.19



Based on this area alone the market is clearly down over 20%.


I want you to imagine for a moment. Imagine you want to buy a house today. You have a ton of homes to choose from. The media is telling you not to buy today, because it will be cheaper in the near future. How are you going to act??????
Will you pay more than the last sale?
Will you care if the last sale was an REO?

What buyers are saying is: I want turn key, the best price and a good deal. They are fearful of buying now and the home dropping another 20%. I am telling my buyers to expect further declines. But I feel comfortable selling a home to a buyer with a 3 to 5 year time frame.

I expect home values to drop through the year, firm up next spring and stay flat through next year. In 2010, we should see some appreciation.

The big question is: What is today's value? (My answer is similar to that of the National Association of Realtors and was molded by the different coaching calls and my experience. I have been selling homes since 1995, over 1,000 home to date.)

Answer: Based on recent, last 60 days, sales and competition on the market, we price your home. Now we monitor showings, we should see 2 to 4 per week in this market. We are in season. If we don't get that activity, we missed the price. If we do get the activity, what are they saying? What is the feedback? If no one is interested nor saying good things about the home, like we want to buy it, then the activity is saying we are close. But we need to adjust the price again. We want to get in front of the market before it moves lower.

Call Jeff for a personalized Market Assessment for your situation. 480-502-7699

FORECLOSURES JUMP 65% IN APRIL

If you are in the real estate market right now you know, it is dominated by Foreclosures and Short Sales. They are pushing prices lower. Until we get them worked through the system, prices will continue to drop. The good news is inventory levels continue to drop. I believe that is because the owner that "doesn't have to sell" and doesn't want today's value is just taking their home off the market.

Foreclosure rate skyrockets in April
Posted May 14th 2008 8:40AM by Michael Fowlkes
April saw a 65% increase in foreclosures from the same month a year ago.The numbers pretty much speak for themselves, with 243,353 receiving notices in April. This is a vast increase from April 2007, when "only" 147,708 homes received the same notice. This was also a 4% increase from March. The numbers are based on a report from RealtyTrac Inc.Homeowners in California and Florida are among the hardest hit. The two states had 9 metropolitan areas that ranked in the top ten areas of the country in terms of foreclosures..As big as America is, it is hard to really visualize just how severe this problem has become. So, let's put it in terms that are a bit easier to comprehend. Of all the homeowners in the country, 1 out of every 519 homes received foreclosure notices in the month. That's pretty scary if you think about it. Only 8 states did not have a higher foreclosure rate in April than they did in April of last year.The main reasons for the rise in foreclosures is nothing new, and you are probably already too aware of all of the following factors; falling home sales, falling home prices, tighter mortgage lending and refinancing, and the slowing U.S. economy. These all add up to the perfect storm for homeowners.
Read the rest of this article here:
http://www.bloggingstocks.com/2008/05/14/foreclosure-rate-skyrockets-in-april/

Another Cameron Team Listing Under Contract

We have acceptance!! We just listed the home at 10974 E. Mary Katherine in Scottsdale and it's Pending!! This home is bank owned and was listed at a great price which brought us a buyer and approval within a couple days. We hope to get this one pushed through quickly and closed.

We are continuing to work with Indymac Bank and selling REO properties. We are also working towards relationships with other Lenders and Banks to list and sell more REO's.

If you have questions about buying or selling a home, or want to know more information about REO properties, please feel free to contact us at 480-502-7699.

SHORT SALES, THE BANKS ARE SHOOTING THEMSELVES IN THE FOOT

You have probably heard of "short sales," they are a big part of today's market. Sellers are trying to sell their home rather than get foreclosed on. Sounds like a good idea and "the right thing to do." Better to sell now, than get foreclosed on...run up the bank costs, let the home go into further disrepair and have a larger amount of losses for the bank to charge off on your credit.

We all seem to get it, doing a short sale helps the banks. Then why are the banks being so difficult?

Last month one of my buyers wrote an offer on a home listed as a short sale. It stated in the listing the price was already accepted by the bank. We negotiated $505k on a home listed for $539K. Everything was submitted to the bank. At the time there were no homes for sale in Desert Ridge, Aviano, under $600k. Well now that has changed. This home backing to 40th Street, probably a future busy street when Mayo Blvd and the Highway go through. The bank had an opportunity with my buyer to unload this home.

4 weeks later, which is pretty quick, they countered at $554,500. My buyers walked and bought a much better deal in Fireside at Desert Ridge. GOOD LUCK, NATIONAL CITY MORTGAGE!! You passed on a great opportunity. We would have paid $530K if you would have just responded in a timely manner. Take the home back and sell it after foreclosure. Let's see, with a 1% holding cost, in 4 months you will break even if you get your price. I don't think you will have it on the market in 4 months, you move to slow!!!!