AIMEE & JAYDEN UPDATE

I spent a few hours with Aimee and Jayden yesterday.  We didn’t have any plans, I just went over to her apartment to spend time with them.  As I mentioned, Aimee’s got a good head on her shoulders.  Jayden is a sweet little boy.  He’s very comfortable around people; a great sign.  He’s a typical toddler boy who likes to climb and throw and has a great little arm….he throws really straight! 

I brought him a giant coloring book and large crayons.  He had fun just handing me crayons and letting me draw.  We went out into the yard and spent time on the jungle gym.  He loves to swing and play peek a boo.  I really enjoyed playing with him which allowed Aimee was reading a book on toddlers.   

We got to talking and it seems that she has to take in a roommate because the apartment is 2 bedroom.  Hello…..what is Jayden?  Isn’t he another person?  I cannot believe that the State would force her into rooming with another girl (supposedly a pregnant) one in this tiny, tiny place.  

In May, when Aimee turns 21, she has to find other living arrangements.  She’s only been here since December.  Her financial responsibility is $200 per month.  She makes less than $9.00 per hour, so you do the math.  The apartment is filled with furniture that is not hers as most of these young women are moved from place to place, have no car or family to speak of, so they have to be mobile.  

I know Aimee wants more for herself and Jayden.  She will get there and I hope I get to see it.  I’m going to try to take some photos, because Jayden’s so darn cute!!!

More to come…stay tuned!

REO PITFALLS

REO or real estate owned properties can pose a few problems for potentials buyers the least of which is non-compliance.  Let me explain.  A friend of a friend found a foreclosed property that she liked.  She drew up the standard Arizona real estate contract and also has a contract from the bank who owns the property.

She was scheduled to close on March 15th.  It is March 20th and she still has not closed.  She asked me what she should do.  Well, I asked why her realtor had not issued a cure notice to the bank.  What about the bank’s representative?  Both the buyer and seller agent should be all over these properties.  

Now because the property has not closed, this woman is going to lose her rate lock.  She’s frantic.  

This should not have happened.  Her agent has a responsibility to represent his/her client.  This is a lack of representation, in my opinion.  How could they have let this ball drop?  

I know we hear horror stories about short sales and foreclosures.   The banks are inundated with these properties, but the housing crisis has been going on for awhile.  The banks need to get their act together.  It’s extremely frustrating for all parties when no one knows “who’s on first”.  

Buyers need to beware of the pitfalls of buying a foreclosed property.  In addition, be sure that you have an agent that stays on top of the situation.   There’s nothing more stressful than rearranging your life around a closing date and having it put off due to incompetence.

TERRAVITA–GREAT NEWS

I have a listing in the gated golf community of Terravita in North Scottsdale.  As in most communities throughout the valley we are seeing many more active listings than in previous years.  Although lending practices have once again become more stringent, we are seeing sales.  There are two properties on the same street as my listing that have changed their status to pending.  

This is a great sign as these homes are $600k plus.  This shows that people are starting to move forward with purchasing.  You’ll get all different opinions on the market regarding “have we hit the bottom yet”, but you just need to see that homes are selling.  It’s still a buyer’s market, but for those who can buy, it’s a great time.  I do believe that within the next year to two years we are going to see the interest rates increase which will make it more difficult for people to purchase a home with a mortgage due to the higher interest rates.  This is bound to happen.  With the money that is being printed by this government, it’s just a matter of time.  

That being said, I’m having the entire inside of my listing painted.  Take another look after March 29th at the new and improved home at 6526 E. Evening Glow Drive.  This home is owned by the original owner who lived by himself, no pets and no children.  This is a gently used home with amazing views of the 7th fairway of the Terravita Golf Course and Black Mountain.

GIVING BACK UPDATE

Yesterday, I spent time with a young lady who has been assigned to the Community Advisor Program of which I’m a volunteer.  Aimee is 20 years old with a 20 month old son.  She has spent a good deal of her youth in group homes and within the CPS system.  I do not know exactly why and perhaps when I get to know her better, she’ll tell me.   

She does have a mother and father.  They are divorced and live in different parts of the State.  Aimee does not have an automobile and relies on public transportation to get around.  Currently, she is working about 32 hours per week with a local grocery store chain.  Her hours are not ideal for raising a small child, but she feels that she’s fortunate to have a job and that Jayden will adjust.  Jayden goes to a state run childcare facility because they are open until 10:00 pm which allows Aimee to work her shift which is usually until 9:00 pm.  She will be eligible for benefits at her one year anniversary.  

I took them to the Railroad Park in Scottsdale.  I’ve never been there as it is for small children and mine were too big when we moved here 11 years ago.  It’s a lovely park.  We spent a couple of hours there.  We then went for a bite to eat.  Aimee has never taken Jayden to a restaurant and it was quite a challenge keeping him still.   He’s a typical little boy.  Very curious.  

Aimee seems to be a good mom and you can tell that her son loves her.  She’s fairly open and seems to have her head on right.  Jayden does not see is biological father as Aimee feels he is not a good role model and she worries about his safety.  Aimee works hard and would like to go to college to make a better life for herself and her son.

I’m looking forward to learning more about her and her hopes and wishes.  I will blog about my experiences in the months ahead.

GIVING BACK

About six months ago I saw an article in a local publication about a program aimed at helping young adults who are aging out of the Child Protective Services sector.  These young adults are turned out from their group homes at the age of 18, with little or “life” experience.  

The Community Advisor Program is an offshoot of AASK - Adopt A Special Kid.  I was curious and contacted the program coordinator, Mike Weddle.

I went through the process of interviewing, fingerprinting, reference checking, etc.  I felt it was a worthwhile endeavor.  I raised two good kids and felt I could lend support to another young person who was trying to make their way in this world.

The program coordinator searches for matches with the people who have offered to donate their time as the Community Advisor.  The young adult signs onto the program with the understanding that they must talk to their advisor at least one time per week.  We in turn report back to the Program Coordinator and the children are allowed to continue to receive financial support (albeit small) from the state.  

I got an email last week that the coordinator wanted to arrange a “match” meeting with a young woman who is 20 years old, soon to be 21.  She is living in an apartment for unwed mothers.  She has a 20 month old son.  She seems like a nice young lady.  I will be seeing her and her son this coming Sunday.  She does not have a car, so I will take them out.  I am going into this with eyes wide open, but I so hope that I can make a difference in this young woman’s life.  

I will blog in the coming weeks about our progress.  If you feel that you too would like to make a difference, please contact me so that I can put you in touch with the appropriate person.  nikki.simon@cox.net

SOCIAL NETWORK MARKETING FOR REALTORS

I’m very new to this whole social networking world.  It’s actually been quite positive.  I’ve had my blog for about 6 months and it is a work in progress.  I am redirecting my efforts from the White Mountains of Arizona to the Scottsdale/Phoenix market.  I don’t spend enough time up there to make it worth my while and it’s quite expensive to maintain the membership.  

I’ve joined Facebook, Twitter and LinkedIn.  I also go into other realtor blogs and comment so that hopefully they’ll link back to my blog.  I’ve actually had communications back and forth with some very nice people.  I’m a total optimist and believe that most people are well-intentioned.  I’ll go along on my merry way like that until someone disappoints me and then I start all over again.  

I enjoy seeing where all the people come from who are on these sites.  I’ve had followers on Twitter from England!  That’s amazing.  It is even more important in this economy to network and these sites provide the vehicle for that.  I am confident that if persistent it will pay off in terms of information gathering and cross networking.

WHAT THE NATIONAL ASSOCIATION OF REALTORS IS DOING FOR YOU

Just when you thought it was safe to come out of the closet!!!!  Just kidding.  Here’s a quip from the President of the National Association of Realtors (Charles McMillan) with regard to the latest attempt by the Obama administration to “fix our housing crisis”.  

“You may have seen news reports about President Obama’s budget proposal that was released today at 11:30 AM Eastern Time. A small section of the sweeping budget plan has the potential to become a major impediment to a recovery in real estate markets across the nation. NAR is 100% opposed to the provision that modifies the Mortgage Interest Deduction and is prepared to use its formidable array of resources against its enactment.   As currently drafted, the plan changes the Mortgage Interest Deduction by reducing the amount of mortgage deductibility on families earning over $250,000. This proposed change in the Mortgage Interest Deduction will result in further erosion of home prices and home values. If this proposal is enacted it will lead to a new round of price depreciation, will cause greater distress on the balance sheets of banks as the collateral value of mortgage backed securities declines. A second credit crisis could emerge before the first one is resolved.   As you read this NAR is launching a multiphase plan of action to eliminate this provision from the budget plan. In the next 24 hours, NAR will be expressing our concerns directly to President Obama, to all members of the United States House of Representatives and the Senate, placing advertisements in the publications read by Washington, DC decision makers. Additionally, NAR will be forming a coalition with other groups affected by this proposal.”

Lest you forget that we realtors really are watching out for you!!!!

LOAN MODIFICATION UPDATE

Are you one of the many homeowners out there who are still in need of help with your mortgage.  If you think that you are going to be in trouble or if you’ve already missed a payment or two, don’t wait for the bank to contact you.  Be proactive.  You must contact a lender who knows what they are doing with regard to Loan Modification.  

I work with a lender who has actually worked within a large bank in the Phoenix metropolitan area doing their loan modifications.  He really knows the ins and outs of the system.  In addition, he will meet with you and make sure that you are a candidate for loan modification or he will not take your money.  

There are still unscrupulous lenders out there and that is partially what got us into this mess.  Be sure that you have been referred to someone who is reputable.  Follow my link in the first paragraph to a lender who is there to help.  Rest assured that I have known this man for many years and he knows what he’s doing.  

You cannot afford not to!

PHOENIX REAL ESTATE MARKET-March 2009

If you watch the news on television, it continues to be doom and gloom.  However, there is hope on the horizon.  Just released statistics for real estate inventory in the metropolitan Phoenix area is dropping.  There are still many, many homes on the market, but we are seeing more and more properties sell.  The result — inventory of homes on the market have dropped to their lowest levels since March of 2007.  

While we still have a ways to go, it is a positive sign!  It’s a shame that our news media outlets are not giving you the entire truth.  I guess you cannot sell newspapers or get good ratings with too much good news.  There are also many homes in foreclosure, but they are selling.  

FACT:  Buyers, you will need at least 3.5% down payment.  This is as it should be.  The zero down programs are virtually non-existent.  You actually have to have a FICO score of 620 or better.  The better your credit, the lower the rate.  If your credit is shaky, you should work with a reputable lender to clean up your score.  Don’t forget about FHA.  This is another avenue of opportunity.  Be sure to hook up with a lender who knows the FHA program to guide you.  

FACT:  The first time home buyer credit of up to $8,000.00 is also great.  You must not have owned a home within the last three years and your combined income for marrieds cannot exceed $150k (singles - $75k).  This credit does not have to be paid back!  Once again, a reputable lender is crucial.

FACT:  Phoenix is right behind Denver in affordability in housing.  Because of the number of homes on the market, the decline in value prices and the interest rates, we have the perfect intersection of value meeting affordability.

If you can buy at this time, you should jump into the market.  Because of all the other economic turmoil we are going through, I believe interest rates are going to start going up.  Because of inflation the rates will once again climb to levels we haven’t seen since the 80’s.