Kelli Grant Group

Berkshire Hathaway HomeServices AZ

Buy and Bail and Strategic Default in Arizona

The Buy and Bail Fairy Tale – The Elephant in the Room

pink elephantI’ve studied the elephant that no one likes to talk about for about 4 years. This week, I attended the Short Sale Tsunami event where a panel of real estate attorneys, real estate analyst Mike Orr, Commissioner Judy Lowe, along with representatives for Chase and Wells Fargo spoke about our local Phoenix market.  One of the hot discussions was Strategic Default strategy.  After learning so much about this over the years, I wanted to share some information.  I’m not even going to entertain the moral or ethical question about it.  Nor is this blog intended to give legal advice because I am not a real estate attorney.  My intent is to provide some facts about strategic default, who is doing it, how, and the purpose.

CAUTION! This blog may cause increased heart rate and high blood pressure for some people. angry man throwing the book

Although we are certainly seeing great signs of recovery over the past 4 months, many homeowners in the Greater Phoenix area are sitting in their home staring at a mortgage statement wondering how they can owe hundreds of thousands of dollars more than their home is worth.  Worse yet, many of those homeowners will never see their home appreciate back to what they owe in their lifetime.  If you look at history, take the facts and do the math of average appreciation rates once the economy stabilizes, it doesn’t add up…literally.

So the question becomes, “What to do?”  You don’t qualify for a short sale or loan modification because  you aren’t financially destitute.  Some homeowners in Arizona have come up with a strategic solution aptly named the “Buy and Bail”.   But, many have questioned, “Is the Buy and Bail illegal?”.

 Confused Man with two contractsSo here it is, the shocking truth: The Buy and Bail is NOT illegal.   However, some may say it’s definitely immoral.  People have a moral issue with the “Buy and Bail” because we’re taught as children to “keep our promises”.  A popular belief is that ‘you bought the house, you took a loan out, now you should pay it back.’  One real estate attorney told me, “It’s not a moral issue. It’s a contractual issue.”  (and there’s an entire conversation with contractual verbiage that he can explain that is quite interesting!)  He also asks his clients, “Would you pay $150,000 for good credit?”  Most people say, “No way!”  His response is, “That’s what you’re doing by staying in that house.”

Putting the “moral issue” aside, the only justification I hear for staying in a severely underwater property is that “your credit will be ruined”.  So basically, you should stay in it for the sake of your ego.  “You won’t be able to buy a house for 7 years if you foreclose!”  Hence, the strategy of the “BUY ….Then Bail”.

Strategic default is a business decision to cut one’s losses short, cut bait, let go of the dead weight.  The typical profile of a homeowner who seeks out this type of solution doesn’t have financial hardship in the way that they’ve lost a job or racked up too much debt spending money they didn’t have.  Their hardship is that they’re hundreds of thousands of dollars under water on a property whose value will not recover in 10, 20, 30 or more years. They put 10 to 30% cash down payment when they purchased the property. They are not the zero down or FHA buyers.  They have money in the bank and earn a good income.  For various reasons, such as a growing family, need to Big Sale Half Offmove for a job, or they’re savvy with money and realize there’s a 50% off blue light special going on, they need or want a new house

Fact:  If you qualify for the new mortgage AND the existing mortgage along with any other debts, without lying or falsifying facts or documents (AKA “Mortgage Fraud”), you can buy a property.  A few years ago, people were creating fake lease agreements on the existing property to qualify for the new mortgage.  Even if you have a valid lease agreement on a property and are trying to buy another property, the new lender does not even take that lease into consideration as income.  And, let’s be clear – mortgage fraud is illegal in any situation.  This also means that you shouldn’t get the new loan as an “investment property” instead of a primary residence.  As soon as you change your mailing address and switch your utilities to the new house, they just might suspect you lied. . . and YES, there are consequences.

Your new lender will most likely ask you to write a letter about what you’re going to do with the existing property.  This letter is a key piece and you should see a real estate attorney before writing it.  What you write on this letter and put your signature on matters.  Less is more.  This letter states your “intent”, so take caution.

Some say that the new lender won’t lend you money on a new purchase if they suspect a strategic default or a “buy and bail” may occur.  Do you really think that a bank doesn’t want to lend money to someone who is well qualified and has a minimum 10 to 40% down payment?  Of course they do!

Once you have closed escrow on the new property, then what?  The new lender may check your credit again within the first 90 days of the new loan.  It is highly likely that they will sell your loan, so your credit can be pulled again AFTER you have closed escrow.  Should you make a few more payments on the old house to show good intent?  Should you make a few more payments in case the new lender pulls your credit again?  Ask your real estate attorney. 

All the attorneys I’ve talked to have consistently conveyed the message that it is hard to prove someone’s “intent” in a court of law.  We have yet to see a lender attempt to go after a homeowner for a “Buy and Bail”.  Do they like it?  Of course not.  Will they try to scare you out of it?  Yes.  Arizona is a non-recourse state with anti-deficiency laws in place.  Talk to your real estate attorney about the details of the laws.  If you took out a HELOC, you BETTER speak to a real estate attorney.

Man Running with ContractWhen you took out the mortgage, you agreed to make payments.  You also agreed that if you stop making payments, the bank can take the house from you.  Once you stop making payments and the bank forecloses, you have satisfied your end of the agreement.  You gave the house to the bank (in excellent condition, right?) and they resold it for a profit.  Did they lose money?  No.  They got all those interest payments over the years from you and now they resold it and got more money.  They made out ok.  PS…….If you can buy a new house, a short sale is not likely to be an option on the old house.

The Mortgage Debt Forgiveness Relief Act of 2007 is scheduled to expire at the end of 2012.  As of right now, you may even qualify for tax relief of the foreclosure under this act. Certainly, seek the advice of your CPA!

I regularly attend classes, events and seminars where economists, attorneys, CPA’s, and industry leaders speak about short sales, foreclosures, strategic default, mortgage fraud, and tax consequences.  It’s important to stay on top of a moving target to understand what options are available. It’s my job to consult with clients and provide you with information so that you can decide the BEST option for YOU and your family…..and for me to know reputable professionals that can help you accomplish your goals.

If you would like to speak to a real estate attorney about your real estate questions or a situation, a number of highly accredited real estate attorneys are listed on my website.  Please feel free to contact me with questions. Two of the recommended attorneys have helped several of my clients and specialize in this area.

March 30, 2012 Posted by | Buyers, Financing & Mortgages | , , , , | Leave a comment

5 Reasons You Should Relocate to Fireside at Norterra in North Phoenix, Arizona Maricopa County 85085

5 Reasons You Should Relocate to Fireside at Norterra in North Phoenix, Arizona Maricopa County 85085

Fireside at Norterra 1.Fireside at Norterra was named Arizona’s #1 Master Planned Community in Maricopa County by Arizona Business Magazine’s Ranking Arizona.The prestigious honor reflects quality home construction and outstanding customer service. Fireside at Norterra has clearly won the confidence of homebuyers in Phoenix, Arizona.

2.Amenities in the Fireside at Norterra Community.A Lifestyle Director is available to facilitate the fun and plan daily activities and events, in true Del Webb fashion.

·Impressive Community Center to meet and greet family, friends or associates

·Fitness Center with aerobics and weight rooms for the health conscience means you don’t need to pay for an outside gym membership

·Indoor rock climbing wall for the adventurist that kids also love

·Spa treatment rooms to relax and unwind

·Adult lap & lounge pool plus a separate family pool with water slide

·Tennis and basketball courts for the sports enthusiast

Fireside at Norterra Fireside at Norterra Fireside at Norterra Fireside at Norterra W.L. Gore Phoenix Campus

3.Location of Fireside at Norterra.Living in the 85085 zip code in Fireside at Norterra means that you are among a hip, new and growing region of the Valley of the Sun. This can be seen by the retail growth at The Shops at Norterra and the brand new W.L. Gore campus, an international company voted as one of Fortune Magazines “100 Best Companies to Work For” in 2011.

You’re only minutes from popular shopping areas, restaurants, banks, and stores for daily errands.Experience the possibilities of the 85085 Lifestyle nearby shopping, dining and entertainment.Within 15-30 minutes, you can be on a golf course enjoying over 300 days of sunshine. Surrounding cities and metropolitan areas offer a unique mix of culture, shopping, sports stadiums, concert arenas, and attractions ranging from the Cosmopolitan to the Southwestern.

The Loop 101 and I-17 freeways give quick, easy access to Anthem, Scottsdale, Glendale, Peoria, downtown Phoenix, and Sky Harbor International Airport. Fireside at Norterra makes any valley destination easily reached, while its peaceful setting still makes you to feel like you’re far away from it all.

4.Nature. Fireside at Norterra is nestled against a mountain preserve offering an intimate and peaceful hillside setting with spectacular views and hiking trails.The surrounding Sonoran Desert offers scenic beauty, miles of natural parkland, picturesque lakes, and a wide variety of activities, events, and attractions for every interest.Within 30 minutes, you can be at Lake Pleasant boating, skiing, fishing or watching a sunset.Celebrate a special occasion on a hot air balloon!Mountain biking, motorcycle riding, ballooning, swimming, hiking …you can have it all!

Fireside at Norterra Fireside at Norterra Fireside at Norterra Fireside at Norterra Fireside at Norterra

5.Affordability and Style : Fireside at Norterra is an upscale, classy community with affordable home prices.New build and resale homes available from the $180s, single level and two story. The Maestro series are 1,654 to 2,693 s.f. from the $220’s and the Overlook series are from 1,254 to 1,819 s.f. from the $180’s. Both are available as specs and new builds.Incentives and financing offers available.Find foreclosures, short sales and traditional resale bargains available in Fireside at Norterra. Call or email Kelli Grant for details on new builds, specs or resale homes and townhomes available in Fireside at Norterra.Townhomes available, call or email for pricing.

Come home to Fireside at Norterra and experience the quality and integrity that have made Pulte Homes the nation’s leading homebuilder. At Fireside at Norterra, you’ll get premium features in your home and a thoughtfully planned out community with high-class amenities that suit your interests and lifestyle.

*** BONUS!Like weekend getaways?Prescott, Sedona, Flagstaff, Jerome, and many other cities are within a couple hour drive north on I-17 frwy.Whether you’re looking for a camp ground, a lakeside cabin, a cozy bed & breakfast or a resort in the mountains, you will find all of these options within reach.

Did you know that Northern Arizona has a magnificent wine country?Check out the latest on wineries, wine bars and all things wine at Arizona Vines & Wines.14 wineries with exquisite wine, history and events available to wine enthusiasts within 1-2 hours from your home at Fireside at Norterra!Tour the Arizona wine country in style with AZ Wine Tours and their extraordinary limo.I can attest to the awesome experience with AZ Wine Tours as I did it in 2011 with a group of friends and it was a fun and exciting day to remember (just don’t drink too much wine and you’ll remember it too!).

Fireside at Norterra Northern Arizona Winery Northern Arizona Winery AZ Wine Tours Limo

Exciting Las Vegas is a 4 hour drive; Rocky Point, Mexico is a 4 hour drive; the ocean of San Diego is a 5 hour drive; the theme parks of Los Angeles are a 6 hour drive; and skiing or rafting in Durango, Colorado are an 8 hour drive or an hour airplane ride!

Other beautiful communities near Fireside at Norterra:

·Sonoran Foothills homes from the mid $100s

·Tramonto homes and townhomes from the $90s

·Tatum Ranch Golf Community apartment style condos, townhomes and homes from the low $100s

Relocating to the Phoenix Arizona? Contact your friendly and professional Relocation Specialist Kelli Grant, resident of 85085 since 2005 and Phoenix resident since 1976, I have enjoyed helping many families, business professionals and retirees relocate or buy a winter home in the area. I am already assisting some of the W.L. Gore employees with their relocation. I go beyond real estate needs. I assist clients with pairing down their winter wardrobe moving from a much colder region, clarify myths and facts about the desert critters, help book hotels for visits to look at properties, provide lists of excellent restaurants, and much more!

Relocation Client Testimony from W.L Gore This Week

A W.L. Gore client relocating from New York wrote this email to me this week: “After meeting you, we’re even more sure that you are the right person for us. We both found you extremely easy to talk to and very knowledgable……..the two key ingredients.” Contact Kelli Grant today for relocation assistance. 602-799-5420

October 22, 2011 Posted by | Buyers, Community, Fireside at Norterra, For Sale, Relocation | , , , , , , , , , , , | Leave a comment

The Truth about Tramonto Home Values in Phoenix, Arizona 85086

The Truth about Tramonto Home Values in Phoenix, Arizona 85086

Tramonto Real EstateI’ve closely watched the housing values of the area to see how it compares to the national stats as well as our valleywide stats. Since Phoenix is extremely subdivision oriented, each community has it’s own unique qualities and value driven indicators.

Tramonto grew during the height of the economic boom and therefore took a massive hit initially. The decline will appear to be more than in other areas simply because the values were ballooned to a level they were never meant to be, due to the fact the community was built at the height of the boom. The neighborhood has been resetting itself since 2009 as more and more original homeowners have sold their homes through short sale, trustee sale (foreclosure) and even some traditional sales!

As we’ve seen Tramonto turn over with new neighbors, the values have held steady for three years now. Below are links to annual sales summaries from 2003 through October 15, 2011. You’ll notice the Average Dollar per Sq Ft of homes sold from 2009 to 2011 remains tight in comparison to the large dips seen from 2006 to 2009 – when the bubble burst!

* 2011 – $84/sq ft. Tramonto Real Estate
* 2010 – $87/sq ft
* 2009 – $87/sq ft
* 2008 – $117/sq ft
* 2007 – $159/sq ft
* 2006 – $177/sq ft
* 2005 – $163/sq ft
* 2004 – $123/sq ft
* 2003 – $105/sq ft

Keep in mind that these are homes in Tramonto that were sold through the MLS, these do NOT include trustee sales. The MLS is a good bird’s eye representation of how values are doing. They DO include investor purchased properties at trustee sales, where they cleaned up the home and often enhanced the features and resold it as a move-in ready, upgraded home through the MLS.

The Realistic Value of Your Home in Tramonto over the next 5 to 10 years

Look closely at the Dollar Per Sq Ft, what do you see? You can see exactly when the ‘Bubble’ happened and when it burst. The realistic value of your home will reset to where they started back in 2003, approximately $100 per square foot. The fake value ballooned, then burst and the economy fell. As the country recovers, you can expect a realistic value of your home to be about $100/sq ft in the next 5-10 years.

***  I can provide you a with a custom value assessment of your subdivision by builder.  Just send an email request to Kelli Grant. ***

Tramonto is in a new, thriving area. Location is on our side. With the addition of the W.L. Gore campus, we will undoubtedly continue to see positive growth immediately. I am already working with employees looking in the area who are being relocated from other states to work at the new location which I’ve been told will initially employ over 800 people. Guess where they want to live? You got it, close to work!

I’ve also had an increased number of Canadian buyers looking in this area. We have the perfect location: beautiful Sonoran Desert hiking trails, new shopping and dining, and easy access to downtown Phoenix for sporting events or nearby golf courses .

Feel good about our growing, magnificent community! Now we just need a Whole Foods or Trader Joes!

Each builder within Tramonto has varying value analysis, so if you have a question about your specific home value or builder, contact Kelli Grant.  As always, call me with questions. I’m here to help!

See the Tramonto Community Calender, Area Events and Find a Job at www.TramontoNews.com.

October 16, 2011 Posted by | Buyers, Community | , , , , | Leave a comment

The Truth about Sonoran Foothills Home Values in Phoenix, Arizona 85085

Sonoran Foothills As a resident of Sonoran Foothills since 2005, I’ve closely watched the housing values of our neighborhood to see how it compares to the national stats as well as our valleywide stats. Since Phoenix is extremely subdivision oriented, each community has it’s own unique qualities and value driven indicators.

 Sonoran Foothills arose during the height of the economic boom and therefore took a massive hit initially. The decline will appear to be more than in some areas of the valley simply because the values were ballooned to a level they were never meant to be, due to the fact Sonoran Foothills was built at the height of the boom. The neighborhood has been resetting itself since 2009 as more and more original homeowners have sold their homes through short sale, trustee sale (foreclosure) and even some raditional sales!

As we’ve seen our neighborhood turn over with new neighbors, the values have held steady for the past year now. Below are links to annual sales summaries from 2005 through October 15, 2011. You’ll notice the Average Dollar per Sq Ft of homes sold from 2009 to 2011 remains tight in comparison to the large dips seen from 2005 to 2009.

* 2011 – $89/sq ft.
* 2010 – $91/sq ft
* 2009 – $94/sq ft
* 2008 – $114/sq ft
* 2007 – $171/sq ft
* 2006 – $170/sq ft
* 2005 – $171/sq ft

Keep in mind that these are homes in Sonoran Foothills that were sold through the MLS. These stats do NOT include trustee sales and some of the new builds that builders sold outside of the MLS at the higher range of the $/sq ft. The MLS provides a good birds eye representation of how values are doing.

They DO include investor-bought properties at trustee sales where they cleaned up the home and often enhanced the features and resold it as a move-in ready, upgraded home. We’re seeing quite a few of these ‘fix-and-flips’ in 2011. Contrary to some opinions, it’s not a bad thing. The majority of buyers I work with do not want to look at fixer upper homes because they either can’t afford it or they’re beyond those years in their life and want a nice, move-in ready home. Those investors brought these buyers into our neighborhood by selling these exact homes with enhanced features for higher prices than a bank-owned house would sell for.

  What the Future Holds for Sonoran Foothills Home Values 

Sonoran Foothills arose is the midst of the real estate bubble. What does this mean? Values were never meant to be that high and history tells us, they will never be that high again during our lifetime. The facts and history shows us that the realistic value of your home is likely going to be between $100-$120 per square foot within the next 5-10 years. Again, many factors (some unforeseen!) affect our home values, and each builder in Sonoran Foothills has a different product from entry level to semi-custom, so KEEP THAT IN MIND.

***  I can provide you a with a custom value assessment of your subdivision by builder.  Just send an email request to Kelli Grant. ***

 Sonoran Foothills is in a new, thriving area. Location is on our side. With the addition of W.L. Gore, we will undoubtedly continue to see positive growth. I am already working with employees looking in Sonoran Foothills who are being relocated from other states to work at the new campus which I’ve been told will initially employ over 800 people. Guess where they want to live? You got it, close to work!

I’ve also had an increased number of Canadian buyers looking in our neighborhood. We have the perfect location: beautiful Sonoran Desert views, hiking trails, new shopping and dining, and easy access to downtown Phoenix for sporting events or nearby golf courses.  Feel good about our growing, magnificent community in Sonoran Foothills! Now we just need a Whole Foods or Trader Joes!

Each subdivision and builder within Sonoran Foothills has varying value analysis, so if you have a question about your specific builder’s neighborhood or your home value, just let me know.  As always, call me with questions. I’m here to help!

Get detailed information about each builder and what is actively for sale in every subdivision in Sonoran Foothills.

See the Sonoran Foothills Community Calender, Area Events and Find a Job at www.SonoranFoothillsCommunity.com.

All information should be verified by the recipient and none is guaranteed as accurate by ARMLS. Data pulled is as accurate as the listing agent entered it.


October 16, 2011 Posted by | Buyers, Community | , , , , | Leave a comment

3 Bdrm Cul-de-sac Home with Pool in Gated Community Next to Tatum Ranch

Kitchen with granite3 Bedroom Cul-de-sac Home in Gated Community Next to Tatum Ranch

$310,000 Fannie Mae Owned House

This 3 Bedroom Cul-de-sac Home in Gated Community Near Tatum Ranch is perfect for a winter home in desirable Desert Wind, just north of Tatum Ranch Golf Community. 2433 sq ft single level home has granite, kitchen island, breakfast bar, and walk-in pantry.This 3 Bedroom Cul-de-sac Home in Gated Community Near Tatum Ranch is a Fannie Mae owned house and a great bargain! Enjoy an open floor plan, high ceilings,lighted niches, lots of windows. Fireplace & entertainment niches in family room open to dining area & gourmet kitchen.

This gorgeous 3 Bedroom Cul-de-sac Home in Gated Community Near Tatum Ranch Pool with desert views has desert views and a view fence with pool in the backyard. Master suite w/full bath, double sinks, separate shower/garden tub,huge walk-in closet. Large covered patio/sparkling pool w/water spouts.

The lovely 3 Bedroom Cul-de-sac Home in Gated Community Near Tatum Ranch is near shoppng, dining, golfing and hiking!

3 Bdrm Cul-de-sac Home in Gated Community Next to Tatum RanchCome home to your 3 Bedroom Cul-de-sac Home in Gated Community Near Tatum Ranch !It’s ready and waiting for you to move in.Spend your winters in sunny Cave Creek, Arizona where many of top golf courses are within a minutes!

Call Kelli Grant at 602-799-5420 to see this home before it sells! Learn More About Tatum Ranch Golf Community

More Sonoran Desert Communities

Sonoran Foothills Community

Tramonto Community

Tatum Ranch Community

August 15, 2011 Posted by | Buyers, Cave Creek, For Sale | , , , , | Leave a comment

Tatum Ranch Golf Community in Cave Creek, Arizona

Tatum Ranch Golf Community in Cave Creek, Arizona

Tatum Ranch Golf Course Community in Cave Creek, Arizona Tatum Ranch is a master-planned community of more than 3,000 homes with five commercial sites of restaurants, retail stores and offices in the northeast corner of Phoenix. Tatum Ranch Golf Community in Cave Creek is located where North Tatum Boulevard and Cave Creek Road meet. Tatum Ranch is in the Sonoran Desert life zone, including seven washes or arroyos from northeast to southwest.

Tatum Ranch Golf Community in Cave Creek is home to some of the most beautiful native Sonoran Desert vegetation and wildlife in the entire Southwest. Residents enjoy the quiet beauty and serenity of the Sonoran Desert while still within close proximity to shopping and dining in Cave Creek, Phoenix and Scottsdale. The elevation of Tatum Ranch Golf Community in Cave Creek is about 1,800 feet. Because of its distance from the heart of the Phoenix metropolitan area (22 air miles) and its proximity to the New River Mountains just north, the summer temperatures are usually 5 to 10 degrees cooler than recorded at Sky Harbor International Airport.Colorful sunsets and a dark night skies with twinkling stars are enjoyed in the backyards and on patios of residents in Tatum Ranch Golf Community in Cave Creek.

Whether you like to play golf or play in the pool, Tatum Ranch Golf Community in Cave Creek is a friendly, distinguished community of familiesTatum Ranch Golf Course Community in Cave Creek, Arizona and part-time residents from all over the country.Escape from the snow this winter! Tatum Ranch community is an excellent place to buy your winter home.Cave Creek, Arizona has Golf Course Communities, Gated Communities and Communities with Mountain Views.

Live amongst the beauty of the Sonoran Desert and mountain ranges Tatum Ranch Golf Community in Cave Creek. Relax and unwind in your backyard overlooking nature’s most beautiful scenes. Whether you’re in Cave Creek, Arizona part-time or full time, you always have something to look forward to! Hiking trails, wine bars, shopping, dining, art walks, and plenty more community festivities!

Tatum Ranch Golf Community in Cave Creek, ArizonaEntertain family and friends by the pool in summer or during a 70 degree evening in winter. Or, relax and unwind with your significant other and enjoy the beauty of the desert and mountains around you in peace and quiet. Whether you are looking specifically for a home in Tatum Ranch Golf Community in Cave Creek or one of the surrounding golf or mountain view communities, you win!

Tatum Ranch Golf Community in Cave Creek or any of the surrounding communities such as Dove Valley Ranch or Rancho Mańana, have all the amenities and beauty that a true nature-buff wants . . . unless you’re looking for ocean views!

Call local resident and neighborhood REALTOR, Kelli Grant, at 602-799-5420 to start your home search today. Kelli Grant has lived in the Sonoran Desert area since 1976! She has helped several satisfied families relocate and helped couples buy their retirement home or a winter home. Because Kelli is familar with the area and knows local businesses, she can refer you to other qualified professionals such as Desert View Property Management to look after your winter home while you’re away. Kelli@YourCommunityResource.com

More Sonoran Desert Communities

Tatum Ranch Golf Course Community in Cave Creek, ArizonaTatum Ranch Community

Sonoran Foothills Community

Tramonto Community

August 3, 2011 Posted by | Buyers, Cave Creek | , , , , , , , | Leave a comment

3 Bedroom Townhouse in Grayhawk North Scottsdale Golf Community

3 Bedroom Townhouse in Grayhawk North Scottsdale Golf Community
$389,000

Grayhawk Townhouse Kitchen

This 3 Bedroom Townhouse in Grayhawk North Scottsdale Golf Community  is perfect for a winter home in desirable Encore at Grayhawk.  1725 sq ft single level townhome has granite, dark stained Alder cabinets, Plantation shutters and wood blinds, 18” tile floors with mosaic marble entry.  Chef’s kitchen has new brushed stainless upgraded appliances.  This 3 Bedroom Townhouse in Grayhawk North Scottsdale Golf Community  is a traditional sale so you can pack the moving van and get settled before winter!  Go to the property website for full details

This gorgeous 3 Bedroom Townhouse in Grayhawk North Scottsdale Golf Community  has mountain views of Pinnacle Peak and the McDowell mountains.  Private location with no one behind you.

The lovely 3 Bedroom Townhouse in Grayhawk North Scottsdale Golf Community is a close walk to the swimming pool, spa, and workout facility within a gated community.  There is easy access to TPC golf course, Barrett Jackson auction in January, spring training games, hiking, shopping, dining, or relaxing at a local spa.

Come home to your 3 Bedroom Townhouse in Grayhawk North Scottsdale Golf Community!  It’s ready and waiting for you to move in.  It’s not a short sale that you have to wait months for and it’s not a bank owned property that requires thousands in work.  Spend your winters in sunny Scottsdale, Arizona in the premier golf course community of Grayhawk.

Call Kelli Grant at 602-799-5420 to see this home before it sells!

July 27, 2011 Posted by | Buyers, For Sale | , , | Leave a comment

When will I qualify for a mortgage after a short sale or foreclosure?

When will I qualify for a mortgage after a short sale or foreclosure?

Many clients who have gone through a short sale or foreclosure after 2007 are now asking me the question, “When will I qualify for a mortgage?” Housing is once again affordable and people want to take advantage of rock bottom deals. Prices in Phoenix, Arizona are hovering around the bottom. You can see from this chart that there haven’t been any drastic plunges or spikes over the past 9-12 mths as shown in previous years. Now is the time to buy a house and become a homeowner once again.  Now is the time to relocate, invest in a winter home, buy a retirement home, and invest in rental properties and fix-n-flips.

Monthly Ave Sales Price Maricopa County July 2011 Cromford Report

Another reason people are asking if they qualify to purchase a home again is because the FHA loan limits are said to be dropping significantly October 1, 2011. That means the buying power in the 3.5% down payment price range is much lower. In Maricopa County Arizona, the loan limit is currently $346,250. As of October 1st, it will be $271,050. That’s a decrease of $75,200 in buying power! Learn more about FHA Loan Limits.

Others questioning, “When will I qualify for a mortgage?” are homeowners who elected to do a strategic default because the equity is so upside down. These homeowners are hundreds of thousands upside down in a property and are well aware that the value will never rebound in their lifetime to what they originally paid, so they cut their losses short. They are now looking to invest in properties. Interest rates are low, prices are at bottom and there are several opportunities to fix up a foreclosed house and flip it – or buy and hold it to take advantage of the booming rental market.

Finally, the answer to the question: When will I qualify for a mortgage after a short sale or foreclosure?

The Waiting Period to Qualify for a Home Mortgage after a Short Sale, Foreclosure or Bankruptcy

The Waiting Period to Qualify for a Home Mortgage after a Short Sale, Foreclosure or Bankruptcy

The Waiting Period to Qualify for a Home Mortgage after a Short Sale, Foreclosure or Bankruptcy

* JUMBO waiting periods vary by lender
* Waiting period time frames may be less in situations with extenuating circumstance
*For LTV’s greater than 80% ‐ mortgage insurance guidelines may differ

Kelli GrantCall Kelli Grant to set up your custom web portal of MLS listings that match the property criteria, location and price range you’re interested in researching. You’ll receive notification emails up to once a day when there are price changes or new listings to see. Call Mark Taylor for your free loan consultation about which loan programs best suit your needs.

Kelli Grant specializes in short sales, pre-foreclosure options such as the HAFAprogram, and strategicdefault options in the cities of Phoenix, Scottsdale, Cave Creek, Anthem, Glendale, and Peoria. Kelli Grant is the neighborhood specialist for Sonoran Foothills and Tramonto. If you need to speak to a reputable, reliable real estate attorney or CPA about the legal and tax consequences of a short sale or strategic default, contact Kelli Grant.

Kelli Grant Realty

July 20, 2011 Posted by | Buyers, Financing & Mortgages, Short Sales | , , , , , | Leave a comment

FHA NEW LOAN LIMITS Oct 1st 2011- Get the facts dis-spell the myths

Such important information especially for clients who are still wondering is it the right time to buy. Well, with inventory shrinking, prices moving up and now FHA chopping a third of the loan amount off – the indicators are clear lets get an offer in on that home before it is gone.

Call me for help Kelli Grant in finding that perfect home

Via Mark Taylor FHA VA USDA HUD & Investor Loans (First Time Buyers Investors and move up buyers):

fha new limits for 2011

So with all the rampant rumors and conjecture by people who just want to make noise. I have attached the correct document from FHA on the proposed loan reductions.

“Who cares” an agent said yesterday – well my response was “you should and here is why!”

Barring a Congressional Stay our loan amounts will be reduced Oct 1st 2011

If there are buyers on the fence wanting to buy a home on the upper reaches of financing they will not be able to after Oct 1st. For example in Maricopa County Arizona currently the loan limit is $346,250 it will be $271,050 a drop of $75,200 in buying power!

In San Diego where I write loans it is dropping $151,250, In Monterey County it is $246,750 and Los Angeles County buying power is reduced by $104,250.

If you have offers on short sales, you need to see what can be done to expedite the process or start preparing for a back up plan!

To see how this may affect you go here: FHA LOAN LIMIT UPDATE

Serious Stuff Right?

When analyzed by potential impact on loan counts, nine states may experience declines that are greater than 5%: Arizona, California, Colorado, Connecticut, District of Columbia, Massachusetts, Maine, New Hampshire, and Oregon. When evaluated by potential impact on dollar volume, eight states may experience declines that are greater than 10%: Arizona, California, Connecticut, District of Columbia, Massachusetts, New Hampshire, Nevada, and Puerto Rico.

What does it really mean for us?

As with anything in our industry of late we are all fueled by the rumor mill and coffee house myth that somehow becomes an urban legend and quickly a fact – like QRM mortgages and the 3% tax hit on all sales of future real estate all of which have become very mute – but from the press and local MLS meeting you would have thought that the world had stopped turning.

Again I believe this to be the case. While any reduction in my ability to help someone finance a home is irritating to say the least the impact based on 2010 and 2011 performance will shock you as to how little of an impact this may have:

For the U.S. as a whole, approximately 3% of loans by count (33,301) and 6% by dollar volume ($14.2 billion) endorsed in calendar year 2010 would not have been endorsed had HERA limits been in effect. In calendar year 2011 to date (January through April), approximately 2% of endorsed loans by count (6,673) and 7% by dollar volume ($2.8 billion) would have been affected.

So yes this is an irritation, and a major adjustment for some. Good news is we have plenty of warning

For updates as they happen and often before they happen feel free to subscribe to FHA LOANS

Thanks for reading my FHA NEW LOAN LIMITS – Get the facts dis-spell the myths Oct 1st 2011


To get your free approval please call 602-361-0707

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July 14, 2011 Posted by | Buyers | , | Leave a comment

4 bedroom house Cave Creek School District Under $300,000

4 bedroom house in Cave Creek School District Under $300,000

5135 E Skinner

Move-in Ready

This4 bedroom house in Cave Creek School District is perfect for your family in desirable Tatum Ranch.  2165 sq ft two story cul-de-sac home has a large backyard with a play area.  You’ll love cooking in your beautifully updated kitchen with granite countertops, tumbled travertine, stunning cabinetry, and stainless appliances.  A conveniently located walk-in pantry provides generous space for all of your cooking staples, soups and snacks.  This 4 bedroom house in Cave Creek School District is a traditional sale so you can pack the moving van and get settled before the school year starts!

Additional features in this gorgeous 4 bedroom house in Cave Creek School District include shutters throughout along with modern lights and fans.  This two-story home has one bedroom with walk-in closet and one full bathroom downstairs.  The spacious two upstairs bedrooms share a jack-n-jill bathroom with double sinks.

The large master bedroom of this 4 bedroom house in Cave Creek School District will fit all of your furniture at 15’ 10 x 13’ 10.  Relax in your master bath’s garden tub, enjoy enough counter space with double sinks and the ease of a separate walk in shower.  The walk-in closet has enough space for any shoe fanatic!

The substantial backyard of this 4 bedroom house in Cave Creek School District is big enough for all of your family cook-outs and play dates.  The large grass area is perfect for pets.  After a sunny day outside, wash the grass stains out in the downstairs laundry room.  The owner is even including the front loading washer and dryer that are only a year old.

5135 E Skinner Front

Tatum Ranch Cul-de-sac Lot

Come home to your Tatum Ranch 4 bedroom house in Cave Creek School District!  It’s ready and waiting for you to move in.  It’s not a short sale that you have to wait months for and it’s not a bank owned property that requires thousands in work.  This lovely 4 bedroom house in Cave Creek School District under $300,000  is only waiting for a new family since its current owners have outgrown it.

Finance this 4 bedroom house in Cave Creek School District under $300,000  with FHA financing.  Call Sue Lechman at 480-797-6000 to see how you can get this house for as little as 3.5% down.  Then, call Kelli Grant at 602-799-5420 to see this home before it sells!
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June 21, 2011 Posted by | Buyers, Cave Creek, For Sale | , , , , , | Leave a comment