Living In Tucson Blog

Wow…it’s been a long time since my last entry into this blog. As John Lennon wrote, “Life is what happens to you while you’re busy making other plans”. Among my excuses, like my dog ate my homework, it’s been a busy couple of months at the office and my wife Faye and I took a couple of mini vacations to Florida and California visiting family and friends and we are about to go on one more trip to Philadelphia. Life is too short, so we try to attend weddings and other happy occasions and spend time with friends to celebrate life in all its fullness.

Since my last blog entry, there has been a wide array of mortgage related news out there. I suspect that anyone who may have been following my blog might have been following some of this news. Most recently, news of changes to FHA mortgages was been announced. The upfront mortgage insurance premium is being increased from 1% to 1.75% in April. The annual premium which is paid monthly will increase by 0.1%. The average mortgage payment will increase by $5 per month.

In the past couple of months since my last post, there have been some encouraging signs in the housing industry especially here in Arizona. We have seen headlines of declining values for months, but the Case Schiller Index which tracks real estate values has had two consecutive months of increased values in Arizona even though most of the country is declining. According to Kiplinger’s most recent weekly newsletter, the inventory of unsold homes is dropping. I can tell you first hand that Realtors are having a hard time finding good properties to sell their buyers. Any decent homes that are priced right are getting multiple offers. A fair amount of transactions are short sales or foreclosures.

Another sign of the improving economy is job creation. The numbers are climbing in the private sectors. One possible impediment to our recovery is the price of gas at the pumps. Let’s hope those speculators won’t drive up the prices too significantly.

So now that you have a job and you are ready to take advantage of record low rates and the reduced cost of a home, call me! I’m here to help you with your mortgage approval. You can reach me, David Wolsky at (520) 275-2536 or david@davidwolsky.com.

Get Your Government Hands Off My Mortgage Industry!

Bank regulators and Congress are looking to make more changes to guidelines for conventional and FHA mortgages. Congress would like to privatize Fannie Mae and Freddie Mac. The timing of these changes is challenging, considering the struggling housing market and anemic economic recovery. Among the proposed changes being proposed are increasing the minimum down payment for conventional loans to 20%, setting higher income and credit qualifications and reducing the maximum loan limits. FHA proposals include increasing the minimum down payment to 5%. These changes will certainly eliminate potential buyers, causing the housing market to take a longer time to recover.

Short Sales Aren’t Alway Short!

In my mortgage practice, a large percentage of my deals are “short sales” or bank owned properties. Recently, I had a customer that offered to buy a home with a short sale. The listing agent set the sales price, the buyers agreed and  after several weeks, the bank declined the offer. The house will be foreclosed instead. It is likely that another buyer could buy this house on the steps of the courthouse for a lower price than the short sale offer than my customer had offered on the home. I guess the bank decided they could make more money foreclosing the property than accepting the short sale offer. Why else would they turn down a qualified buyer. In fact, he decided to pay cash for the house and the bank still turned him down. Another factor that makes short sales so tough to execute is junior liens. In other words, the current owner of the house has a first and second mortgage and both lien holders have to agree on the sale. This dynamic usually means the junior lien holder (second mortgage or HELOC), is taking a beating on the balances owed on their loans.

I had another interesting deal that closed a few weeks ago. The buyer was buying a short sale and it took months for the first and second lien holder to agree on the terms of the sale. Once it was finally approved, we put the loan in process. The listing agent requested that we close the loan within three weeks of the short sale approval. During those three weeks, we find out that Fannie Mae was going to auction off the house in a foreclosure acout a week before we were scheduled to close. We were able to stave of the foreclosure with a lot of persuasion from the REALTORs involved with the sale and the buyer was able to get the house. The first mortgage lender probably should not have approved the short sale if they knew the investor (Fannie Mae) had begun foreclosure proceeding.

Foreclosures are much easier to buy. The lenders are offering terms to sell the homes. For example, Fannie Mae (FNMA) has a program known as HomePath. They typically will offer 3.5% of the sales price as a concession to the buyer for a primary residence or a second home. The offer 2% for investors. The program does not require an appraisal and there is no mnortgage insurance required if you have a down payment below 20%. A million foreclosures are anticipated again this year. Half of the homes in Arizona have negative equity and home values continue to go south. Hang in there as time heals all wounds. The first quarter of 2011 has been robust for home sales in Tucson.

Tucson Is #4!

According to Inman News, Tucson is considered a top five best markets for investors thanks to the declining housing prices. Of the top ten, only two cities were out west (Tucson and Salt Lake City). The report looks at economic data, housing and demographics including the median price of homes, loan data and foreclosure sales.

If you have any questions about real estate in Arizona, contact David Wolsky at 520-275-2536 or david@davidwolsky.com.

Article in today’s Arizona Daily Star:

http://azstarnet.com/article_93344c38-9999-51b7-aa5d-1ee85580ab87.html

I hope they’re right!

I ran across this article a couple of days ago and wanted to share it with real estate professionals. Tucson is a tough real estate market for the past couple of years and it is easy to be negative. Reading the article and following the advice will certainly help me with my mortgage business and it can certainly be adapted to many professions. I hope the author does not mind sharing her words on my blog!

8 Ways to Stay Positive in Today’s Market

So many real estate professionals today are wondering, “How can I stay positive in today’s market?” Like any discriminating real estate professional, you realize the value of a positive mental attitude. Here are eight ways that you can create and maintain a positive mental attitude in today’s market:

1. Avoid toxic people. Who are the toxic people? Toxic people can be well-meaning people, but when they talk to you, they are coming from a negative attitude about money, finances, and especially about the current real estate situation.

They may be fellow real estate professionals who want to gather around the water cooler, they may be relatives who are just trying to protect you; they may even be friends and family.

You will know if you’ve been around a toxic person, because you will begin to feel deflated.

Here’s your job: either change the subject or walk away. Better yet, speak up for yourself and mention that you want to think positively about yourself and about your business.

If you see one of them coming your way, find a way to avoid the interaction because it does not serve your highest good (or theirs).

2. Set an internal boundary. If you’ve tried everything and exhausted ways to avoid toxic people, then you may have to set an internal boundary. You can do this very simply by having your own inner conversation if someone is saying something negative to you on the outside.

A great example of an inner conversation when someone is complaining about their business or about the marketplace is to say to yourself, “that may be true for you, but it’s not true for me.” This can become your inner mantra.

3. Avoid the media. Why? Remember that the intention of the media is to sell newspapers and magazines. The more they can paint a negative and fearful picture, the more their sales go up. Why subject yourself to negative spins on the economy when you can find just as much information to point to the positive?

4. Successful real estate professionals do well in any market. Were you aware of that? Knowing that fact, none of us can continue to use the excuse about the market being bad. In fact, I am coaching several clients right now who in the last six months have doubled and tripled their incomes. In addition to the right marketing strategies and regular lead generation activities, you could help yourself with this empowered belief: “I now draw clients to me who are ready, willing and able to make a transaction in the next 30 days.”

5. Look for the opportunity in today’s marketplace. There are many opportunities in today’s market and successful real estate professionals are taking advantage of them.

Did you know that Donald Trump is buying up as much property as he can? Why do you think that is? He is a smart businessman, to say the least, and knows that this is the best time to buy.

Let your prospective clients know this and then say to them, “Let’s get you a deal.” Few could resist this invitation.

6. Remember that your success depends on your mindset, not on the outer conditions of the market. “If you believe you can or you can’t, either way you are right,” Henry Ford said.

What mindset do you choose to nurture inside yourself? Do you want to believe, “I can “or “I can’t.” Your beliefs create your reality; so whatever you choose to believe will become true for you.

7. Remember to engage the Law of Attraction as one of your most powerful tools. The law of attraction states that you get what you focus your attention on. Furthermore, your beliefs create your reality, so choose your beliefs carefully.

Here’s a tip: instead of saying “I can’t possibly succeed in today’s market,” choose instead to focus on one of these beliefs:

- “I achieve whatever I set my mind to.”

- “I am a money magnet in any situation.”

- “I attract clients who appreciate and respect my expertise.”

- “My success depends on my attitude, not on any outer circumstances.”

8. Be proactive. In any marketplace there are always people wanting to buy and sell homes. They need your help and they need your expertise. Your job is to become visible to them. In today’s market, they are not likely to fall in your lap.

However, with a good system of lead generation, you can contact them and use your intention to attract your ideal clients.

Clear out any self-limiting beliefs that stop you from picking up the phone. Follow the suggestions mentioned above, and you’ll be happy to notice that not only are you staying more positive, but your income is increasing as well.

By: Maya Bailey, Ph.D., www.rismedia.com