Bob's Thoughts About Everything

7218 W. Turney Ave., Phoenix, AZ 85033
July 11th, 2008 12:43 AM
Bob Pearson | Arizona Premier Realty Homes and Land | bob@bobpearsonrealty.com | 623-363-2438
7218 W. Turney Ave., Phoenix, AZ
Diving pool with slide, Only one family has owned this home since 1970.
3BR/1.5BA Single Family House
offered at $120,000
Year Built 1970
Sq Footage 1,280
Bedrooms 3
Bathrooms 1 full, 1 partial
Floors 1
Parking 1 Covered spaces
Lot Size 6,020 sqft
HOA/Maint $0 per month

DESCRIPTION

Great 1280SF block home. 3BR, 2BA, 1 car carport. Brand new ceiling fans in all areas of home, brand new oven, inside laundry, lots of storage cabinetry and closets throughout, automatic motion detector lights in backyard, finished outside storage. GREAT diving pool with slide and monthly professional pool service set up.. WAS JUST PROFESSIONALLY CLEANED AND SPRAYED FOR ANY SUMMER BUGS!! Home inspection and termite inspections have both been performed, all inspections and receipts can and will be provided. All this home needs is a bit of paint, new flooring, and landscaping. It will feel brand NEW!! Only one family has owned this property since 1970!!

see additional photos below
PROPERTY FEATURES

Central A/C Central heat Family room
Living room Dishwasher Refrigerator
Stove/Oven Laundry area - inside Balcony, Deck, or Patio
Yard Swimming pool

COMMUNITY FEATURES

Covered parking Storage space(s) Swimming pool(s)


OTHER SPECIAL FEATURES

Brand new ceiling fans
Brand new oven
Open House July 12 from 10:00am to 2:00pm
Open House July 19 from 10:00am to 2:00pm

ADDITIONAL PHOTOS

Seller contact info:
Bob Pearson
Arizona Premier Realty Homes and Land
623-363-2438
For sale by agent/broker

powered by postlets Equal Opportunity Housing
Posted: Jul 10, 2008, 9:27pm PDT

Posted by Bob Pearson on July 11th, 2008 12:43 AMPost a Comment (0)

August 2008 Newsletter
July 31st, 2008 5:44 PM
Bob Pearson
Arizona Premier Realty Homes and Land
(623)363-2438
Recent Real Estate News
WASHINGTON (MarketWatch) -- President Bush signed legislation on July 30, 2008 aimed at shoring up the housing market, providing an emergency safety net for mortgage giants Fannie Mae and Freddie Mac and helping several hundred thousand families avoid foreclosure.
 
Inman News -- Loan Servicers Report Record Workouts. The HOPE NOW coalition of mortgage loan servicers engaged in a record number of workouts with borrowers facing foreclosure in June and the second quarter of 2008, the group said Wednesday . Servicers completed more than 181,000 workouts in June and 522,000 in the second quarter -- loans that otherwise would have gone into foreclosure, the group said.
 
Inman News -- Are You Eligible for FHA Loan?
The Department of Housing and Urban Development maintains a Web page that allows visitors to determine FHA mortgage limits for their area, or several areas, and list them state, county, or Metropolitan Statistical Area. The FHA home page also offers a search tool to find FHA lenders in your area, and tools for determining the maximum mortgage you can afford and comparing the cost of renting versus buying.

NEW Multiple Listing Service
On July 28th, the Arizona Regional Multiple Listing Service converted to an entirely different platform. The new platform provides a multitude of new features. One of the best features is the ability to create an excellent website called a portal which is tailored directly to a specific buyer. The portal allows you to view listings that you want to see. I can set it up so that you can see all the listings in a certain area that contain 3 Bedrooms, 2 baths, a 2 car garage, a pool, between 1400 and 1600 square feet, RV parking, etc. The list goes on and on. There is no limit to how many searches I can create for you, as well. Call me to set up a Portal just for you. 623-363-2438

Beijing 2008 Summer Olympics

Bejing_2008.gif

The Games of the XXIX Olympiad will take place from 8 to 24 August 2008. The Games in Beijing will play host to the 28 summer sports currently on the Olympic program. Approximately 10,500 athletes are expected to participate in the Games, with around 20,000 accredited media bringing the Games to the world.
Olympic Sports

Beijing Emblem
Every emblem of the Olympics tells a story. The Beijing 2008 Olympic Games emblem "Chinese Seal, Dancing Beijing" is filled with Beijing's hospitality and hopes, and carries the city's commitment to the world.
One World One Dream

Theme Slogan
"One World One Dream" fully reflects the essence and the universal values of the Olympic spirit -- Unity, Friendship, Progress, Harmony, Participation and Dream. It expresses the common wishes of people all over the world, inspired by the Olympic ideals, to strive for a bright future of Mankind. In spite of the differences in colors, languages and races, we share the charm and joy of the Olympic Games, and together we seek for the ideal of Mankind for peace. We belong to the same world and we share the same aspirations and dreams.
Spirit

Below is a link to the entire schedule for all the Olympic competitions.
Schedule


Healthy Homes for Healthy Living - How to Buy Peace of Mind

Home Trends by Melissa Birdsong

RISMEDIA - Homeowners are looking for a quality of life that promotes health, safety and well-being-and it all begins with the home.

If someone were to ask you to describe the most important things about achieving the “good life,” what would you say?

Last month, I referenced the top three things noted in a recent study-good health, financial security and having a home of your own-and noted that even in these challenging economic times, being a homeowner is still the dream of most people. With so many things in play that they can’t control-gas and food prices, home values, the global economy and more-homeowners are paying very close attention to the things they can control by making better, more thoughtful choices about what they look for in a home. And today, that often means discovering what it takes to have a healthy home to support good health and well-being.

Today’s home buyers are seeking safe and secure homes with systems and materials that offer protection in the broadest sense of the word. Home security systems, stout locks on doors and windows, and smoke and carbon monoxide detectors can deliver peace of mind.

Having a home that is designed to promote accessibility and comfort for all family members is another way for a home to support good health. But a third and complementary perspective is all about having a home that promotes wellness through clean air, pure water and clean surfaces.

Consumers are keenly interested in a home’s air and water quality and the systems and materials that are in place-or not-to ensure a healthy interior environment. As a result, they’re likely to evaluate finish materials, such as carpet or hard-surface flooring, counter tops, and tub and shower surrounds not only from an aesthetic perspective, but also from a “clean-ability,” livability and maintenance perspective aligned with supporting their family’s wellness-from general prevention to addressing the special needs of the allergy-prone, the odor-sensitive and the pet owner.

Understanding the rising importance and broader definition of having a home that supports good health can provide meaningful insight for many potential homeowners. Helping your clients find a home that addresses their specific needs is another way to demonstrate your professionalism and your desire to go above and beyond.

Melissa Birdsong is vice president for Trend, Design & Brand, Lowe’s Companies, Inc.

For more information, please visit Lowes.
Source Article

Back To School

Summertime is winding down, and summer vacations are coming to an end. It’s back-to-school time! It’s a time that many children eagerly anticipate — catching up with old friends, making new ones and settling into a new daily routine. Parents and children alike are scanning the newspapers and Web sites looking for upcoming sales to shop for a multitude of school supplies and the latest clothing fads and essentials. This edition of Facts for Features highlights the many statistics associated with the return to classrooms by our nation’s students and teachers.

$7.1 billion
The amount of money spent at family clothing stores in August 2006. Only in November and December — the holiday shopping season — were sales significantly higher. Similarly, sales at bookstores in August 2006 totaled $2.1 billion, an amount approached in 2006 only by sales in January and December. Stats

75.8 million
The number of children and adults enrolled in school throughout the country in October 2005 — from nursery school to college.

$79,946 Average annual 2005 earnings of workers 18 and older with an advanced degree. This compares with $54,689 a year for those with bachelor’s degrees, $29,448 for those with a high school diploma only and $19,915 for those without a high school diploma. Stats

Source: Facts For Figures



MLS2.jpg If you are currently working with another Broker please do not consider this a solicitation. EHO.jpg


Posted by Bob Pearson on July 31st, 2008 5:44 PMPost a Comment (0)

2136 W. Eagle Feather Rd, Phoenix, AZ Rental
July 31st, 2008 12:49 PM
Bob Pearson | Arizona Premier Realty Homes and Land | bob@bobpearsonrealty.com | 623-363-2438
RENTAL -- 2136 W. Eagle Feather Rd, Phoenix, AZ
Like New Large Home With Mountain Views
4BR/3BA Single Family House
$1,700/month
Bedrooms4
Bathrooms3 full, 0 partial
Sq Footage3,758
Parking3+ dedicated
Pet PolicyCats, Small dogs (< 25lbs)
Deposit$1,950

DESCRIPTION

Like-New Beautiful Large Home in a Gated Community with Mountain and City Light Views. 2X6 Constructed La Jolla Floor Plan offers 4 Bedrooms, 3 Bathrooms, a Den and a Massive Game Room with a balcony in back and additional front balcony with a City Light View. The upgraded slab counters, Double Ovens, and Stainless Steel Refrigerator make this the perfect kitchen. Professionally Landscaped with Stacked Stone Accents, this home has Curb Appeal. Other features include Formal Dining Room, Eat-In Kitchen, Living Room, Family Room with massive vaulted ceilings and a glass-block surrounded fireplace for great entertaining. Home includes upgraded 20 inch tile and plantation shutters. Quiet North Valley Location ** ALSO AVAILABLE FOR SALE / LEASE OPTION

see additional photos below
RENTAL FEATURES

Air conditioningCentral heatFireplace
High/Vaulted ceilingWalk-in closetTile floor
Family roomLiving roomBonus/Rec room
Loft layoutOffice/DenDining room
Breakfast nookDishwasherRefrigerator
Stove/OvenMicrowaveGranite countertop
Stainless steel appliancesAtticBasement
Laundry area - insideBalcony, Deck, or PatioYard
Cable-ready

COMMUNITY FEATURES

Garage parking


LEASE TERMS

12 month lease. $25 Credit Check Fee. Security and Cleaning Deposit refundable. Pet Deposit of $250 non-refundable. Pets acceptable only upon Lessor Approval.

ADDITIONAL PHOTOS

Renter contact info:
Bob Pearson
Arizona Premier Realty Homes and Land
623-363-2438

powered by postletsEqual Opportunity Housing
Posted: Jul 17, 2008, 9:52am PDT

Posted by Bob Pearson on July 31st, 2008 12:49 PMPost a Comment (0)

Time To Start Running!
July 31st, 2008 12:45 PM

I received a reminder in my email inbox today. Granted, it is a motivational saying that has been going around for years. Sorry, no new stuff here. However, this is something we need to remember on a daily basis.

"Every morning in Africa a gazelle wakes up. It knows it must run faster than the fastest lion or it will be killed. Every morning a lion wakes up. It knows it must outrun the slowest gazelle or it will starve to death. It doesn't matter whether you are a lion or a gazelle - when the sun comes up, you had better be running." - unknown

Time to start running.


Posted by Bob Pearson on July 31st, 2008 12:45 PMPost a Comment (0)

Adopt-A-Fence Program
July 31st, 2008 12:44 PM

Adopt-A-Fence Program (edit/delete)

If you read my bio, or have followed any of my ActiveRain postings, you know that I love aviation. One of my aviation dreams is to ride in a helicopter. A year ago, during a beautiful Phoenix Saturday afternoon, I was lounging in my backyard pool. I could hear the familiar chop-chop-chop of a helicopter nearing my neighborhood. For some reason, the sound was a little unusual this time. It was much louder. All of a sudden, the bird went right over my backyard. I could have practically reached up and touched those bars that you see hanging down on these beautiful flying machines. It appeared to be landing just down the street from me. Of course, I dried off, threw on a shirt and headed outside to see what was going on.

At the end of my street were firetrucks, ambulances, police cars, and this helicopter landing right on the street. What could it be??? To my horror, I watched as the paramedics loaded a little girl into the helicopter and shut the doors. Away it went. Off into the blue sunny sky.

Of course, I was concerned. I no longer was enamored by the beauty of the flying machine. My thoughts and prayers immediately went out to the little girl and her family. I found out that she was 4 years old and had wandered into the family pool and didn't know how to swim. I cried. I was confused. How could something like this happen? I have learned that this is an all-too-common tragedy in the Valley of the Sun. I watched the evening news that night and learned that the little girl was saved and was recovering nicely. A happy ending to a scary story.

Was there a fence in the backyard of this pool? I don't know. Would a fence have helped to avoid this? I don't know. What I do know is that the Phoenix Fire Fighters Association want to avoid these situations. In an effort to prevent child drowning incidents, the United Phoenix Fire Fighters Association in conjunction with Valley of the Sun United Way has a program called Adopt-a-Pool-Fence. Their efforts provide families with one solution to protect their children - a donated pool fence. While I understand that the first precaution is to carefully watch all young children around a pool, a fence can be a helpful barrier.

If a family does not have a pool fence, they may be able to receive a donated fence. The criteria are the following:

  • A child 6 years or younger must be living in the home
  • The home must be owner-occupied
  • Families must demonstrate financial need
  • Special Circumstances will be considered
  • Families must reside in Maricopa County

Rich Bauer, Director of Community Programs for the United Phoenix Fire Fighters Association, said, "This is the most aggressive approach to prevent drowning to date, and the statistics prove that the Adopt-A-Pool-Fence Program is working."

For more information, log onto www.saverkids.org/adopt-a-fence. Let's spread the word to those families in need. Let's help to avoid the tragic event that I witnessed. I challenge everyone to spread the word about the program to increase awareness and/or donate to this specific group. Together, we can make a difference.


Posted by Bob Pearson on July 31st, 2008 12:44 PMPost a Comment (0)

Why Use A Checklist?
July 11th, 2008 12:37 AM

I am a licensed pilot and a licensed real estate agent. Something dawned on me today that I feel should be shared with everyone else. My thoughts surrounded the idea that faithful use of checklists in aviation and real estate are very similar in the end result. One leads to a successful flight and the other leads to a successful real estate transaction and closing. Failure to use checklists could be very costly in both aviation and real estate. Let's examine.

The first thing a new pilot learns before he or she steps into a plane is how to use a checklist. After learning how many items need to be checked on an airplane, the new pilot sees the checklist as being vital to the success of the flight. One missed item could spell disaster. And when you are in a plane, you can't coast over to the side of the road because you forgot to check the fuel level. Lives are saved by the faithful use of the Pilot's Checklist.

This is an example of a simple checklist that pilots use for the average flight BEFORE they even start the engine.

Preflight Inspection

Interior

  • Tachometer - Checked
  • Weight and Balance - In Limits
  • Parking Brake - Set
  • Control Lock - Remove
  • Battery - On
  • Boost Pump - Verify
  • Beacon Light - Operational
  • Landing Light - Operational
  • Battery - Off

Exterior - Wings

  • Flaps - Inspect
  • Ailerons - Inspect
  • Wingtip and Lights
  • Pitot Cover - Remove
  • Pitot Tube - Clear
  • Stall Warning Horn - Operational
  • Fuel Vent - Clear
  • Fuel Condition - Water-Free
  • Fuel Condition - Contaminant Free
  • Fuel Quantity - Visually Inspect
  • Fuel Cap - Secure
  • Landing Gear - Inspect
  • Tiedowns - Remove
  • Chocks - Remove

Engine

  • Engine Condition - Visually Inspect
  • Oil Level - Inspect
  • Oil Dipstick/Door - Secure
  • Alternator Belt - Tight
  • Carburetor Inlet - Clear of Debris
  • Spinner - Secure
  • Empennage
  • Static Port - Clear
  • Baggage Door

There are numerous NTSB (National Transportation Safety Board) reports of fatal airplane crashes that conclude with the cause of the crash being pilot error. They most likely missed one of the above steps. They may have not VISUALLY inspected the fuel level. Fuel gauges are not always operational. If you rely on the gauge, you may be finding a field to land on between Wichita, KS and Dallas, TX. The worst case would be finding a mountain to plow into between Denver, CO and Salt Lake City, UT.

Now let's see what happens in a typical real estate transaction. When I was finally fortunate enough to get my first accepted offer, I was completely confused about my next step. I was calling my broker and other fellow agents for the answers. What do I do now. One of them finally sent me a checklist. Here's a sample real estate checklist that I use in conjunction with www.wiseagent.com.

First step: Call your spouse or significant other and tell them to go ahead and pay the utility bill. Just kidding. We all know not to spend the money until the checks in your hand. In fact, there are so many steps that can and do go wrong in that wonderful period we call escrow. It may not be as life-threatening as an empty fuel tank at 15000 feet. But the same feeling goes through the lower part of your chest when you find out that you missed a critical step.

All new pilots use a checklist. All good experienced pilots use the checklist every time they fly. Some flyers (I hesitate to call them pilots or aviators) think that they know the procedures by heart and can go without the checklist. They are the ones that we read about in the NTSB reports. The same goes for experienced real estate agents. The other day, I called an experienced agent and asked for the Lead Based Paint Disclosure. She had forgot to do that form. She wasn't using a checklist.

OK, Back on Track. Just like flying a plane, there are numerous other parts of the transaction that have their own checklist. In piloting, there is a checklist for the steps that are needed after takeoff and a checklist for the steps required just before landing. In real estate, there are separate checklists for the listing appointment. I am only going to deal with the Sales Contract Checklist in this article. Here is the sample checklist that was given to me by a fellow agent. I encourage all real estate agents to recognize that, no matter how long you have been in the business, you should use a checklist for success. Just like a successful landing, I look forward to seeing all of you at the closing table.

Agency Disclosure ASAP Click here to set this value to N/A Click here to add this item to your to do list
Conditional Loan Approval Delivered to Seller ASAP Click here to set this value to N/A Click here to add this item to your to do list
Received Earnest Money Receipt from Title Company ASAP Click here to set this value to N/A Click here to add this item to your to do list
Schedule Home Inspection ASAP Click here to set this value to N/A Click here to add this item to your to do list
Schedule Pest Inspection ASAP Click here to set this value to N/A Click here to add this item to your to do list
Schedule Appraisal ASAP Click here to set this value to N/A Click here to add this item to your to do list
Receive Title Commitments Prelim/CC&R's ASAP Click here to set this value to N/A Click here to add this item to your to do list
Pool Disclosure ASAP Click here to set this value to N/A Click here to add this item to your to do list
Receipt of HOA/Condominium/PUD Documents ASAP Click here to set this value to N/A Click here to add this item to your to do list
Superfund Disclosure ASAP Click here to set this value to N/A Click here to add this item to your to do list
Order Home Warranty Plan ASAP Click here to set this value to N/A Click here to add this item to your to do list
Confirm Buyer Set Up Home Owner's Insurance ASAP Click here to set this value to N/A Click here to add this item to your to do list
Receive and Review SPDS with Buyer 5 Days After Contract Date Click here to set this value to N/A Click here to add this item to your to do list
Confirm Payment of Appraisal 5 Days After Contract Date Click here to set this value to N/A Click here to add this item to your to do list
Lead Based Paint Disclosure 5 Days After Contract Date Click here to set this value to N/A Click here to add this item to your to do list
Buyer's Acceptance/Rejection of Prelim/CC&R's 5 Days After Receipt Click here to set this value to N/A Click here to add this item to your to do list
Buyer's Disapproval of HOA/Condo/PUD Documents 5 Days After Receipt Click here to set this value to N/A Click here to add this item to your to do list
Buyer's Approval/Rejection of SPDS to Seller 10 Days After Contract Date Click here to set this value to N/A Click here to add this item to your to do list
Home Inspection Disapproved Items to Seller 10 Days After Contract Date Click here to set this value to N/A Click here to add this item to your to do list
Flood Hazard Disclosure 10 Days After Contract Date Click here to set this value to N/A Click here to add this item to your to do list
Receive/Review Wood Infestation Report with Buyer 10 Days After Contract Date Click here to set this value to N/A Click here to add this item to your to do list
Buyer's Disapproval of Lead Based Paint Disclosure 10 Days After Contract Date Click here to set this value to N/A Click here to add this item to your to do list
Septic Tank Inspection During Inspection Perios Click here to set this value to N/A Click here to add this item to your to do list
Confirm Buyer Set Up Utility and Phone Connections Prior To Close of Escrow Click here to set this value to N/A Click here to add this item to your to do list
Final Walk Through with Buyer Prior To Close of Escrow Click here to set this value to N/A Click here to add this item to your to do list
Deliver Keys to Buyer Close of Escrow Click here to set this value to N/A Click here to add this item to your to do list
House Warming Gift Close of Escrow


Posted by Bob Pearson on July 11th, 2008 12:37 AMPost a Comment (0)

The Perfect Storm
July 10th, 2008 4:58 PM

Three phenomenon have converged at I-17 and Carefree Highway in North Phoenix. Anyone travelling in this vicinity and direction should plan for extra time during the weekends to get to their destination. The three reasons for this traffic nightmare include:

  1. The proximity of Lake Pleasant and the perfect boating weather.
  2. The ongoing construction of the I-17 and Carefree Highway bridge and the addition of lanes.
  3. The increased number of shops and restaurants in and around the Tramonto neighborhood.

More information about the freeway closures can be found at http://www.azdot.gov/Highways/Valley_Freeways/I17/Black_Canyon_Fwy_North/closures_restrictions.asp.

The $19.6 million I-17/Carefree Highway reconstruction project will provide a modern interchange with capacity to handle increased traffic in the area. The entire project is scheduled for completion this fall. For information about housing near Tramonto, please visit www.bobpearsonrealty.com.


Posted by Bob Pearson on July 10th, 2008 4:58 PMPost a Comment (0)

July 2008 Newsletter
July 3rd, 2008 10:08 PM

Bob Pearson, REALTOR®
Arizona Premier Realty Homes and Land
Call me: (623)363-2438
Bob@BobPearsonRealty.com

www.BobPearsonRealty.com

In Memory of Fred Souchek (1930-2008)

Fred.jpg

My wife, Janet, and I would like to thank everyone for their prayers and support during this past month. Janet's father was cleared for his final takeoff on June 18, 2008. He was a tremendous role model to everyone. He is responsible for teaching me how to be patient in everything that I do. His approach to life was very simple; care and love others unconditionally and see the best in everyone. He will be missed but his memories and legacy will live on forever. Fred was an avid model airplane pilot, builder, and collector with a collection of antique model engines that numbered in the 100s and ranged from the 1930s to present.

High Flight - John Gillespie Magee, Jr.

Oh! I have slipped the surly bonds of earth,
And danced the skies on laughter-silvered wings;
Sunward I've climbed, and joined the tumbling mirth
Of sun-split clouds, --and done a hundred things
You have not dreamed of --Wheeled and soared and swung
High in the sunlit silence. Hov'ring there
I've chased the shouting wind along, and flung
My eager craft through footless halls of air...
Up, up the long, delirious, burning blue
I've topped the wind-swept heights with easy grace
Where never lark or even eagle flew --
And, while with silent lifting mind I've trod
The high untrespassed sanctity of space,
Put out my hand, and touched the face of God.

4th of July

On this day in 1776, the Declaration of Independence was approved by the Continental Congress, setting the 13 colonies on the road to freedom as a sovereign nation. As always, this most American of holidays will be marked by parades, fireworks and backyard barbecues across the country.

Fourth of July Cookouts

More than 1 in 4
The chance that the hot dogs and pork sausages consumed on the Fourth of July originated in Iowa. The Hawkeye State was home to 17.6 million market hogs and pigs on March 1, 2008. This represents more than one-fourth of the nation’s total. North Carolina (9 million) and Minnesota (6.7 million) were the runners-up. Source: USDA National Agricultural Statistics Service

6.8 billion pounds
Total production of cattle and calves in Texas in 2007. Chances are good that the beef hot dogs, steaks and burgers on your backyard grill came from the Lone Star State, which accounted for about one-sixth of the nation’s total production. And if the beef did not come from Texas, it very well may have come from Nebraska (4.7 billion pounds) or Kansas (4.1 billion pounds).
Source: USDA National Agricultural Statistics Service

Georgia
The state that led the nation in watermelon production last year (1 billion pounds). Other leading producers of this popular Fourth of July dessert included California, Florida and Texas, each with more than 400 million pounds.
Source: USDA National Agricultural Statistics Service

More than 74 million
Number of Americans who said they have taken part in a barbecue during the previous year. It’s probably safe to assume a lot of these events took place on Independence Day.
Source: Statistical Abstract of the United States: 2008, Table 1213

“People don't care how much you know--until they know how much you care”
--John C. Maxwell


Investor Report: Anti-Flipping Rules

by Kenneth R. Harney

Here's some really good news for anyone involved in acquiring, rehabilitating and reselling foreclosed houses: The Federal Housing Administration is temporarily waiving its "anti-flipping" rules and will now insure mortgages on properties that have been owned by the current seller for less than 90 days.

The policy change opens up a potent resource -- the red-hot FHA fixed-rate mortgage program -- to investors and property disposition companies looking to move houses quickly off their books at a profit.

The idea, according to FHA Commissioner Brian Montgomery, is to help get rid of the "glut of foreclosed and abandoned homes" now burdening large numbers of neighborhoods around the country.

FHA's 90-day policy slowed the process down. But at least until June of 2009 -- when the temporary waiver expires -- it should no longer be an impediment.

HUD had adopted the 90-day rule at the height of the housing boom, after it found that scam artists were buying up central city and suburban foreclosures at rock bottom prices, then flipping them at inflated resale prices within days to home buyers using low-downpayment FHA-backed loans.

The buyers frequently were unsophisticated, unaware of the artificial increase in the price, and couldn't afford the high mortgage amounts. They defaulted in large numbers, ended up in foreclosure, and lenders hit the FHA insurance fund for claims.

Under the revised policy, FHA will require purchasers to be financially capable of handling the mortgage, and underwriters will look hard at appraisals. But the agency no longer will rule out insuring a mortgage simply because title to the property had changed hands within the previous three months.

Investors and property disposition firms who work with lenders' "REO" departments can play key roles in returning abandoned and damaged houses back to productive use.

But without dependable financial takeouts -- affordable mortgages for buyers whose credit histories may be imperfect -- their jobs are much tougher.

FHA's return to the foreclosure resale market segment through its waiver of the 90-day anti-flipping rule should give those investors an important resource to start using - now.

Remember: FHA says the policy change is temporary. Even with a new administration, that June deadline just might be for real.

Published: June 27, 2008

Kenneth R. Harney writes an award-winning, nationally-syndicated column on housing and real estate from Washington, D.C. He is also managing director of the NationalRealEstateDevelopmentCenter, a professional education company. He is a past member of the Federal Reserve Board's Consumer Advisory Council, a committee that by federal statute reviews all Fed actions on home mortgage, consumer credit and banking industry regulation.

He served as a member of the U.S. Department of Housing and Urban Development's Working Group on Computerized Loan Origination (CLO) systems, and is a member of the Editorial Board of the Fannie Mae Foundation's journal, Housing Policy Debate. He is the author of two books on mortgage finance and real estate.

MLS2.jpg If you are currently working with another Broker please do not consider this a solicitation. EHO.jpg

Posted by Bob Pearson on July 3rd, 2008 10:08 PMPost a Comment (0)

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