Today in Bullhead City, Fort Mohave & Mohave Valley we have 147 Bank Foreclosed Homes For Sale at unbelievable Prices. If you are looking or thinking of purchasing a home for yourself or as an investment now is the time before you miss the boat and ship sales without you. Interest rates are at historicly low rates at 4.35% today and we have lots of homes available under $100,000. It is now cheaper to Buy a home then Rent. Call or E-mail me today to take advantage of this great opportunity and I will E-mail you the list or Mail it to you.

An FHA loan is a mortgage insured by the Federal Housing Administration, a government agency within the U.S. Department of Housing and Urban Development. Borrowers with FHA Loans pay for mortgage insurance, which protects the lender from a loss if the borrower defaults on the loan.Because of that insurance, lenders can — and do — offer FHA loans at attractive interest rates and with less stringent and more flexible qualification requirements.

Following are seven facts all buyers should know about FHA loans.

The FHA doesn’t mandate a minimum credit score each borrower’s creditworthiness is considered in context. Some leeway is allowed, even for borrowers who’ve filed for bankruptcy.Lenders can overlay their own requirements on top of the FHA’s guidelines. Some lenders might require a minimum credit score. Ask prospective lenders about such a requirement if your credit is less than perfect.
Lenders underwrite FHA loans to ensure that the customer has the willingness and capability to repay the loan.

The FHA requires a down payment of just 3.5 percent of the purchase price of the home. That’s a fraction of the percentage typically required on most other loans and a huge attraction. Borrowers can use their own savings to make the down payment. But other allowed sources of cash include a gift from a family member, or a grant from a state or local government down payment assistance program.

Because the FHA is not a lender, but rather an insurance fund, borrowers need to get their loan through an FHA-approved lender (as opposed to directly from the FHA). Not all FHA-approved lenders offer the same interest rate and costs — even on the same FHA loan. That’s another borrowers should shop around.

Two mortgage insurance premiums are required on all FHA loans: The upfront premium is 2.25 percent of the loan amount, and the annual premium is 0.55 percent of the loan amount. The upfront premium must be paid when the borrower gets the loan but can be financed as part of the loan amount. The annual premium is paid in chunks of 1/12th of the total along with each month’s mortgage payment..However, borrowers need to compare the FHA-insured loan to a loan that’s not FHA-insured (and consequently requires a much larger down payment). In many cases, the FHA loan is still the best choice. The FHA has a special loan product for borrowers who need extra cash to make repairs to their homes. The chief advantage of this type of loan, called a 203 (k) is that the loan amount is based not on the current appraised value of the home but on the projected value after the repairs are completed. A so-called “streamlined” 203(k) allows the borrower to finance up to $35,000 in nonstructural repairs, such as painting and replacing cabinets or fixtures.

Today I got a call from a client I have been working with for the past 6 months, we have looked at over 20 homes all in the neighborhoods of there desires. They have been heart broken now for the 4th time because they procrastinate on making an offer hoping the homes would not be purchased and drop in price.

I have been reviewing with them that homes are selling in Bullhead City and not staying on the market for as long as they use to so prices are very affordable right now along with interest rates at a historically low rates. I asked them why are they waiting so long to make an offer on the home that meets there wishes and desires. He paused and said don’t you watch the news, did you see the news this morning foreclosures are at 1 million I said hold up…

Lets take a look a step back from the doom and gloom of foreclosures and declining sales prices and lets focus on what you have experienced first hand in the last 6 months. I was doing some research today for another client and I made this discovery that I would like to share with you. In Bullhead City most of the foreclosures are priced at fair market value and are not being sold for pennies on the dollar most are priced based on location, Condition and age.

Long term demographics support my theory that now is the best time to buy a home. The U.S is adding only about 600,000 new units a year & long term growth in new households is 1.3 million per year. Today most college graduates have chosen to live at home with there parents and some couples have put off getting merried, in 5 to 6 years of no housing growth I believe we could see in Bullhead City Arizona and Fort Mohave Arizona a big housing shortage. In the peek of 2005 2.1 Million Homes added, 2006 1.81 Million Homes, 2007 and 2008 1.34 Million, by 2009 555,000, Bullhead Citys population is expected to grow from 40,000 to 100,000 in the next 30 years and Fort Mohave Arizona is expected to explode.

With 1.3 million people per year entering the workforce and starting a family it may become a big problem & home values would spike again along with mortgage rates, jobs and growth means homes in Bullhead City Arizona and Fort Mohave will become more expensive. Bullhead City Arizona has alot to offer over other parts of the country. Lots of sunshine, no polution, Great schools and much much more.

Today there are 137 Foreclosures available for sale in the Bullhead City, Fort Mohave, and Mohave Valley communities, I have something available for everyone from sizes to prices to living on the Colorado River. I wish I had a crystal ball that would show there may never be another time like this to own the Home of your dreams at such an affordable price. Call or e-mail me today for more information on purchasing a home lots of Financing options still available also before this opportunity is gone. Pamela Mello Bullhead Laughlin Realty 928-219-9155 Pamela@PamelaMello.com

FHA Rolls Out Principal Reducing Refis for Underwater Borrowers
08/06/2010 By: Carrie Bay

Nearly a quarter of U.S. homeowners with a mortgage owe more on the loan than their home is worth, and home prices are threatening to fall further and push even more borrowers underwater. The Federal Housing Administration (FHA), though, is throwing out a lifeline.
Starting September 7, the federal agency will offer new FHA-insured mortgages to certain underwater, non-FHA borrowers who are current on their mortgage payments and whose lenders agree to write off at least 10 percent of the unpaid principal balance.

This last part could prove to be the caveat that leads the new FHA refi program down the same road as the federal government’s other housing programs – a road of below par results and public criticism.

Lenders are fantastically reluctant to write down mortgage principals. It would mean either they or their mortgage investors would have to eat the amount of debt that’s forgiven, and it could set a precedent that a loan contract is not a contract at all if the terms spelled out in black and white can be changed based on market nuances, such as a slump in real estate values.

The FHA refi program for underwater borrowers was originally announced in March as part of the administra-
tion’s expanded foreclosure prevention strategy. On Friday, FHA and HUD published a mortgagee letter explaining to lenders the details of the new negative equity refinancing program.

To be eligible for a new loan, the homeowner must owe more on their mortgage than their home is worth, be current on their existing mortgage, and occupy the property as their primary residence. The homeowner must qualify for the new loan under standard FHA underwriting requirements and have a credit score equal of at least 500.

Participation in the program is voluntary and requires the consent of all lien holders. The borrower’s existing first lien holder must agree to write off at least 10 percent of their unpaid principal balance to bring the borrower’s combined loan-to-value ratio to no more than 115 percent.

In addition, the existing loan to be refinanced must not be an FHA-insured loan, and the refinanced FHA-insured first mortgage must have a loan-to-value ratio of no more than 97.75 percent.

To facilitate the refinancing of new FHA-insured loans under this program, the Treasury will provide incentives to existing second lien holders who agree to full or partial extinguishment of the liens.

Servicers planning to take part in the new program must execute a Servicer Participation Agreement (SPA) with Fannie Mae by October 3, 2010.

HUD says interested homeowners should contact their lenders to determine if they are eligible and whether the lender agrees to write down a portion of the unpaid principal.

FHA Commissioner David H. Stevens, said, “This is another tool to help overcome the negative equity problem facing many responsible homeowners who are looking to refinance into a safer, more secure mortgage product.”

E-Mail Me today for the Details Pamela@PamelaMello.com

PAMELA MELLO Earns NAR Short Sales and Foreclosure Certification

Buyers and Sellers Benefit from REALTOR^® Expertise in Distressed Sales

Bullhead City, AZ — PAMELA MELLO with BULLHEAD LAUGHLIN REALTY has earned the nationally recognized Short Sales and Foreclosure Resource certification. The National Association of REALTORS^® offers the SFR certification to REALTORS^® who want to help both buyers and sellers navigate these complicated transactions, as demand for professional expertise with distressed sales grows.

According to a recent NAR survey, nearly one-third of all existing homes sold recently were either short sales or foreclosures.  For many real estate professionals, short sales and foreclosures are the new “traditional” transaction.  REALTORS^® who have earned the SFR certification know how to help sellers maneuver the complexities of short sales as well as help buyers pursue short sale and foreclosure opportunities.

“As leading advocates for homeownership, REALTORS^® believe that any family that loses its home to foreclosure is one family too many, but unfortunately, there are situations in which people just cannot afford to keep their homes, and a foreclosure or a short sale results,” said 2009 NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth. “Foreclosures and short sales can offer opportunities for home buyers and benefit the larger community, as well, but it’s extremely important to have the help of a real estate professional like a REALTOR^® who has earned the SFR certification for these kinds of purchases.”

The certification program includes training on how to qualify sellers for short sales, negotiate with lenders, protect buyers, and limit risk, and provides resources to help REALTORS^® stay current on national and state-specific information as the market for these distressed properties evolves. To earn the SFR certification, REALTORS^Ò are required to take one core course and three Webinars.  For more information about the SFR certification, visit www.REALTORSFR.org or call 1-877-510-7855.

PAMELA MELLO

BULLHEAD LAUGHLIN REALTY

(928)704-6700 Office

(928)219-9155  Cell

Pamela@PamelaMello.com E-Mail

www.PamelaMello.com  Website

By DANIEL CALLAHAN/The Daily News

I came across this video which illustrates the cause of the banking crisis and stock market collapse. I found it very informative and easy to understand with excellent graphics and commentary. Video – Courtesy crisisofcredit.com

Today’s mortgage Interest Rates are  historically low at  4.375%  along with low Home prices, Foreclosures and Short Sales are the craze today it is a buyers market. I have been receiving a large number of  calls lately from clients who only want to purchase foreclosures , when I offer information or try to show  homes that are being offered as Short Sales  I get responces like, No short sales they never get approved. One of my clients would not even get out of the car when I said this home is the best priced and maintained home in the neighborhood they wanted to live in and was listed for $20,000 less than the foreclosed home that needed thousands of dollars worth of work.

Short Sales can be a great value so I decided to explore the stats to prove my point that people are missing out on great deals on homes that are a  much better value than some Foreclosure.

Right now in Bullhead City Arizona we have 48 Foreclosed homes available for sale in the price range of $28,000 – $329,000 and  the Short Sale inventory in Bullhead City is 28 Homes in the Price Range of $39,500 – $380,000 I did not include any Manufactured Homes or Condos or Homes in Fort Mohave. Now lets Compare the two:

The Foreclosed/Reo VS. Short Sale Homes

In checking out the recent Foreclosure/Reo closings it is obvious to me and confirms my experience on what is happening with the Foreclosure/Reo homes for sale right now. When the buyer is ready to make an offer on a foreclosure the norm right now is there are usually multiple offers that are already submitted so I usually prepare my buyers to make their offer as good as they can to start with. Every time I put an offer in on a Foreclosure the next day like clock work I get an e-mail stating  multiple offers so put in your highest and best and we do well over the asking price and walla the next day the property is pending in the MLS. Being hopeful its our offer that was accepted I call and guess what, sorry someone got it at a higher price. After viewing all the closed sales it is clear as to what is happening on the Foreclosure/Reo Sales.

You the buyer must be prepared to pay more than the asking price then the home is being offered For Sale For. WHY? The sales price is so low that multiple offers come to the table and when that happens, the buyer will be asked to give their “HIGHEST and BEST’ purchase price offer. The bank will ask only once so make that offer the best you can possibly do. This is not an auction, so one SHOT is all you get to re-price your offer and banks prefer cash and prefer owner occupied homeowners probably because of investors who buy and flip homes for a profit. They also want the highest and best offer quickly and you will also need your proof of funds or letter of prequalification also keep in mind if you are the lucky highest bidder you are accepting the property in the AS-IS condition. The Bank is not going to be giving you a repair allowance. From the closed sales stats almost all the foreclosed homes sold for a lot more than the asking price.

Short Sales on the other hand are closing quicker,  Banks have streamlined the process. I have been getting quicker responses on my short sale listings and almost all of the closed sales sold  for the list price. Why is this?  Because the Banks are now setting the Sales Price of the Short Sale listing and this is the price they will accept and the home is usually well maintained and in most cases the best value for the buck.

Home sales continue upward trend

By DANIEL CALLAHAN/The Daily News

Published: Wednesday, June 2, 2010 12:38 AM MDT

BULLHEAD CITY — Seventy-seven homes were sold in Bullhead City in April, according to information taken from the Western Arizona Realtor Data Exchange. April 2009 saw just 60 homes sold, which marks April as the 18th month in a row of year-over-year local sales increases.

Inventory in the Bullhead area again decreased this month, bringing the overall supply of residential homes to 7.9 months supply, down from 8.1 months in March and 11.2 in December 2009. Six months supply is generally considered a balanced market.

Even as the inventory decreased  “more houses came on the market in April than we’ve seen in several months,” said Evan Fuchs, the broker with Bullhead/Laughlin Realty, indicating healthy sales/inventory numbers.

Months of supply is a good indicator, Fuchs said, because it takes more than simply the number of homes on the market in account.

“The months of supply takes into consideration both the rate of sale and the inventory,” he said, allowing for a broader view of the health of the market.

While sales have seen a steady increase, prices continue to decline, said Bob Lewis of P.R.O. Realty in Bullhead City.

“Values are slowing down in dropping, but they’re still dropping,” he said.

In the first two quarters of 2009, the average sale price in Bullhead City was around $162,000. The first two quarters of 2010 have seen a 27.64 decrease in that average sale price to $117,230.

“We know we have foreclosures coming for a while,” which drives down price, Fuchs said. With a glut of foreclosures, the houses on the market that are owner-occupied are assessed compared the price of a foreclosed home, which is generally much lower and attracts more buyers.

“It’s a great time to buy,” Lewis said, if the buyer plans to be in the homefor a number years. Homes are not an investment, financially speaking, but the generalized 5 percent increase in value has been consistent in the long term. There are spikes and drops in that graph, he said, but over five to 10 years, the increase holds true.

There is some concern on the national scene that the improvements in the housing market were brought on by and expire with government incentives such as the first-time home buyer tax credit, which granted a $8,000 tax credit to first-time home buyers and $6,500 to current homeowners who bought and moved into a new home.

“My gut feeling is it’s still going to be a free market situation,” which draws the real estate market out of the troubles it has recently seen, Fuchs said. “It’s not going to be federal programs.”

Despite government programs such as the Making Home Affordable Program or its counterpart, the Home Affordable Foreclosure Alternatives Program, the number of closed short sales did not increase in a statistically notable way in April.

“It feels like there’s more going on” from all the industry discussion of short sales, Fuchs said, but WARDEX shows just five short sales closed in April posing the question of whether the numbers are going to start going up.

“I foresee you’re going to see a lot more short sales happening,” Lewis said, attributing the increase less to the government incentives or programs and more toward the greater education of the banks and lenders.

“Banks are staring to realize they’re not going to get the money out of those loans,” he said.

It costs the bank around $6,000 to turn a foreclosed property around for sale, Lewis said. Tack onto that the 5 percent to 6 percent sales commission and the bank needs to sell that house for more than what it is worth just to see a return on the outstanding loan amount.

“It didn’t sink in six months ago, but it’s starting to sink in now,” Lewis said.

Pamela Mello works with Buyers and Sellers and is a Certified Distressed Property Expert and  Short Sale Foreclosure Resource Certified

Home Affordable Foreclosure Alternatives Program (known as HAFA) went into effect on April 5, 2010. HAFA allows owners to participate in a “short sale” with standardized procedures and expedited timelines. Short sales are traditionally the hardest and longest transactions to complete and involve dozens of hours of phone calls and paperwork and a very high level of expertise. HAFA, it is hoped, will streamline this process. It is important to note, however, that HAFA does not replace the traditional short sale. Rather, it is a stream-lined short sale process that applies to specific owners who have mortgages with specific, participating lenders.

HAFA Is Not For Everyone

HAFA is not a mandated program that all lenders must follow. Nor does it apply to all distressed home owners. HAFA only applies to lenders that voluntarily participate in the HAMP Mortgage Modification Program. The good news is that this includes most major, national lenders, such as: Citi, Bank of America, Wells Fargo, GMAC Mortgage, Chase, Litton, and many others. The bad news is that the program does not apply to Fannie Mae or Freddie Mac loans, which account for a huge percentage of home loans. Nor does it apply to most smaller, local lenders.

In addition, the program does not apply to the following:

• Loans originated after January 2009,
• Loans with a balance over $729,750,
• Property that is not the seller’s principal residence,
• Loans where the total monthly mortgage payment does not exceed 31% of the seller’s gross income.

In other words, HAFA may make a difference for some distressed home owners. But, it may not even apply for a large group of owners and their lenders. In that case, the traditional short sale process may still be a viable option.

How It Works

HAFA is a short sale program designed to work with the Federal home loan modification program called HAMP. The HAMP program is intended to allow distressed homeowners to stay in their homes by using mortgage modifications that lower their monthly payment. The Federal government recognized that many (if not most) homeowners either did not qualify for HAMP or could not even pay the lowered mortgage payment. HAFA is intended to offer these home owners an option to sell their home through a streamlined short sale process.
Traditional Short Sale

In a traditional short sale, the home owner needs to request a short sale from the lender. The process, in a nutshell, goes something like this:

1. Sellers and/or Realtor contact lender and initiate discussions about short sale.
2. Sellers collect reams of documents to prove to the lender that they cannot pay the mortgage.
3. The Realtor lists the property and tries to find a buyer, having no idea how much the lender will demand or what purchase price will be enough for a short sale.
4. Once a buyer has signed an offer to purchase, the seller submits a “short sale package” to the bank. The package contains all financial information and documentation showing the seller is unable to pay and the offer to purchase.
5. The bank often (usually) requests additional documents and follow up documents and it can take many efforts, phone calls and faxes to finally confirm that the bank has what it needs.
6. The Seller, Realtor, and perhaps attorney spend weeks or months negotiating with the bank over the terms of the short sale, including the purchase price, what closing costs and commissions will or will not be paid, how much money the seller might need to contribute at closing, and whether the bank will forgive the debt or demand a deficiency after closing.
7. The Bank finally approves the short sale based on the purchase price, offer to purchase, and any amendments that needed to be negotiated to get bank approval;
8. The sale finally closes.

This process can take months, and in some cases more than a year. Every lender has slightly different requirements and they each handle transactions differently. Most short sales require dozens upon dozens of long phone calls and an unbelievable level of persistence, patience, and hard work. And, Sellers and Realtors must repeat this process for every second mortgage. Up Until the moment of closing, the seller may not know if the lender will demand a deficiency. If the lender does demand a deficiency, the Seller will still owe the bank after closing.

HAFA Short Sale Process

HAFA is intended to streamline and standardize the procedures for short sales. The HAFA process goes something like this:

1. Seller applies for mortgage modification through HAMP program and is either denied or misses payments;
2. The lender must proactively notify the Seller about the option of a HAFA short sale (or the seller can ask);
3. The lender sends a Short Sale Agreement (SSA) and a blank document called a Request for Approval of Short Sale (RASS);
4. The Seller has 14 days to sign the SSA and return it to the lender along with the Realtor’s listing agreement and a title search showing any other mortgages or liens;
5. The Lender will inform the Seller (even before any buyer submits an offer) what it will take to get short sale approval – either a purchase price or the amount of proceeds needed
6. Once a buyer has signed an offer to purchase, the Seller and Realtor have 3 days to fill out and submit the Request for Approval of Short Sale (RASS) to the lender.
7. The lender has 10 days to accept or deny the RASS;
8. Upon acceptance of the RASS, the Seller proceeds to closing.

The fact that we were able to summarize both processes into 8 steps does not mean that HAFA will be just like an ordinary short sale. Step one will require the seller to submit much of the same documents as a traditional short sale. Indeed, a Mortgage Modification also requires financial disclosures and reams of documentation. But, once this step is done, the rest of the process is much smoother, much faster, and standardized.

Differences Between HAFA and Traditional Short Sales

HAFA improves the short sale process in a number of important ways. But it also comes with some trade-offs. The following chart highlights the differences between HAFA and traditional short sales:

These differences are important to understand. More importantly, it is critical to understand that HAFA
does not replace the traditional short sale. It is an additional tool that applies to certain lenders and certain home owners.

Pamela Mello is a Realtor® Licensed in California and Arizona she specializes in Short Sales and holds the CDPE and SFR Designations. Servicing Bullhead City, Fort Mohave and Mohave Valley Arizona  Give me a call today at 928-219-9155 or E-mail Pamela@PamelaMello.com