I know you have been anxiously awaiting the latest Phoenix real estate update, so here it is! As 2011 draws to a close, we are seeing some continuing signs of true recovery in the Phoenix real estate market despite the gloom and doom that some “media experts” continue to report. That being said, according to one Wall Street expert, we are not quite in recovery but in the stage just before. And a little holiday gift from Fannie Mae, Freddie Mac and other major lenders for those homeowners with pending foreclosures.
Tempe Gardens HOA causes short sale to become foreclosure
When you do a lot of short sales, every now and then you are going to run into a situation where a foreclosure happens and there is not much more you could have done to prevent that. Luckily that does not happen much, but when it does we like to tell about it here because there is usually a lesson to be learned.
We had Tempe condo we took the listing on earlier this year. When we took the listing, the condo development, Tempe Gardens, was FHA approved. We accepted an offer that was an FHA offer.
When we got the approval the buyer started to go through their loan process and we discovered that the Tempe Gardens had allowed their FHA certification to expire just a couple weeks before we got our approval and we now had an issue where we needed to get it recertified.
Now this is not an impossible task. The lender was working with us and the buyer to get this thing closed and we believed that we could do it. We made the request for paperwork from the HOA board at Tempe Gardens and they told us to talk to their management company. So the lender went to the management company who took forever to respond. Finally after many requests the management company sent over documentation. The problem was, it was only partially the documentation requested and even some of the documents they sent were not complete.
The management company told us they had provided everything they had from the HOA board at Tempe Gardens. So we went back to the HOA board and of course they once again said said talk to the management company. After many weeks of back and forth with both organizations, and calls from the angry homeowner who had paid close to $200/mo to this HOA board over the last few years, the buyer realized it was not going to happen.
We had been informing the servicer all along what was going on, and they had even granted us an extension to allow time to complete the process. But after dozens of hours, there was nothing we could do and the servicer nor the investor would allow us another extension and this condo, even though receiving approval for a short sale, went to foreclosure.
What should be really frustrating to the homeowners in Tempe Gardens is this unit was going to sell for $75,000 as a short sale is going to end up selling for much less than that as an REO property. Shouldn’t the HOA be helping to increase property values?
So I guess the lesson learned is not only check if your condo development is FHA approved when you take a listing, find out when it is expiring and if they are planning on renewing it.
East Valley real estate negotiations 2011
East Valley Team member Kristin LaVanway talks about how real estate negotiations in the East Valley have changed.
Is it just me? It just doesn’t seem like it’s much fun any more to negotiate a real estate transaction. Short sale, REO’s and homeowners who have have watched all the equity drain from the homes have taken all the pleasure out of the process.
Can the bank really lock me out of my house?
Can the bank lock me out of my house?
East Valley Team member Kristin LaVanway talks about a client who no longer lived in her house and the bank changed the locks out on her house.
Before her house was foreclosed on, a friend of mine discovered that she had been locked out by the lender…can they do this? You bet they can! There is plenty of language in most deeds of trust to allow banks to take measures to “protect” the property that is securing the note, including entering the property without your permission and changing the locks.
Telling a story on NPR on foreclosures
East Valley Team member Kristin LaVanway talks about sharing her story on her foreclosure.
On National StoryTelling Day, I am telling the story of how I lost my house on NPR’s The Story, hosted by Dick Gordon. Between this interview and the pep talk from my Zen Auto Mechanic, I feel like I am really closing this chapter and moving forward.
If you are in the midst of losing your house, it really sucks, there is no doubt about it. But things do get better, absolutely.
Coffee Talk: Fannie Mae reneges on counter, drives me to drink
Fannie Mae reneges on counter
East Valley Team member Dean Ouellette talks about how Fannie Mae reneged on a counter offer after buyer accepted. [Read more...]
Coffee Talk – What you see on MLS is not always what you get
Gloomy East Valley Real Estate News
East Valley Team memberKristin LaVanway talks about how what you see on the MLS is not always what you get. [Read more...]
What’s next after foreclosure? An eviction perhaps
What happens after foreclosure? Eviction?
East valley Team memberKristin LaVanway talks about the practices of some investors after foreclosure. [Read more...]
Who says you can't teach a rocket scientist new tricks. Since Kristin left her former profession for her new one she has built one of the fastest growing businesses in the East Valley. Kristin is known for her Youtube videos, make sure you check them out. 
After a long career in political consulting Dean transitioned to real estate and has not looked back. Dean is one of the sick ones who enjoys fighting with banks to get short sales approved and to help homeowners avoid foreclosure. Dean also loves making videos on the subject.