State Unveils Arizona Tax Recovery Program

From September 1 through October 1, 2011, Arizona will offer Tax Recovery -- an opportunity for those who live, work, or do business in Arizona to pay any back taxes owed to the state without penalty or criminal prosecution, and at a reduced interest rate for those who qualify.

The following taxes are included in the Tax Recovery Program: Individual Income, Corporate Income, Transaction Privilege (Sales), Use, Withholding, Partnership, Fiduciary and Luxury (Tobacco & Liquor).  City taxes are NOT included.

To read more about the recovery period and qualification guidelines follow the link below.

Arizona State Tax Recovery Program.

Tips For Buying Foreclosures

I came across a short article this morning which included the following good tips for anyone considering buying a foreclosed property.  While they came from an agent in Florida, the principals apply in any market, and I really thought they were worth sharing here too.
(My own comments follow the tips in red.)

1. Work with an agent who has access to foreclosure information and knows the process.

• Many home buyers assume that all agents have access to foreclosure listings. It's important to ask.
• Most banks will list their homes with agents on the MLS for the greatest possible exposure on the listing, and of course any good agent will have access to the MLS.  What you want to make sure you're getting are daily automated emails showing you only the listings which fit your buying criteria.  For example I can set you up with a personalized search in the MLS to email you when any listing for a 1400 - 1600 sq/ft, single level, foreclosed home in Gilbert, Arizona is put on the market.  The variables are nearly endless.

2. Bank-owned properties generally close faster than short sales. 

• While short sales can be bargains, they also can take a lot longer. Some banks will negotiate in a timely manner on short sales, but most will prioritize properties they have already repossessed. 
• In truth, most banks have entirely separate departments for handling the disposition of their foreclosed assets.  A foreclosed property is treated like a home owned free & clear by the bank, it requires no additional review of owner financials, investor or mortgage insurance provider reviews, second mortgage sign off etc etc.  A bank can close escrow on a a foreclosure sale just as soon as you can.  In fact most banks want to see a closing timeline of no more than 15 days for cash purchases, 30 for conventional financing, and 45 for FHA financing on a transaction.

3. Don't be afraid to offer less than the asking price. 

• Don't assume that banks are firm on their price. For example, asset managers responsible for liquidating bank-owned Chandler, Arizona condos are often willing to consider a lower offer. 
• Before listing a foreclosed home for sale, most banks get 2 or 3 separate opinions of fair market value from agents and/or appraisers.  So when they set a list price for a property, they are taking into account the fair market value, property condition & repair needs, and the types of financing & seller concession requests they might encounter from buyers.  They have margins they are instructed to work within, but EVERYTHING IS NEGOTIABLE.

4. Ask the bank to pay your closing costs. 

• The worst that can happen is that they say no. Sometimes buyers are surprised to find that banks can be quite accommodating when they want to.
• This goes back to my previous point that EVERYTHING IS NEGOTIABLE.  Just be sure you've spoken to your lender before making an offer that requests closing cost assistance from the seller, to make sure you know the guidelines & allowances for such verbiage in a contract on the type of loan your applying for.

5. Get pre-approved from the right bank. 

• When making an offer on a short sale, it's often strategically helpful to be pre-approved by the same bank. During negotiations, this may tip the scales in your favor.
• While this is true to some extent and some banks are requiring at least a pre-approval be provided by one of their branches on any buyer making an offer on their listings, it's not mandatory that you use the lender who is selling the property to obtain your mortgage.  What's more important is finding a lender whom you trust and believe will give you the best service & loan products available.

Buying any home, foreclosed or otherwise, is a big deal.  You want to make sure you're represented by a real estate professional who knows what they are doing, and has your best interest in mind.  I pride myself on knowing my business well and educating my clients so that they aren't being lead blindly through a transaction, but rather they understand every step of the process and can make informed decisions.  If you or someone you know is interested in buying or selling a home in the Phoenix metropolitan area, please call me, I want to help.

Improve Your Credit Score Before Searching for a Home

Content Provided By RISMedia

Many prospective homeowners find out the hard way the importance of a good credit score when they apply for a home mortgage, especially after the subprime loan crisis. If you are considering buying a home in the near future, it is a good idea to give your credit score a check-up and then take positive steps to improve your credit score if you find problems. Ideally, it is best to begin working on improving your credit score at least six months before you plan to start shopping for a home.

According to the experts at Buy-and-Sell-House-Fast.com, the following tips will help you improve your credit and should be taken before you begin your home search.

The first critical step in taking care of your credit is to check your credit report. Unfortunately, many people fail to take this all important first step. Instead, they wait until they have applied for a mortgage loan to find out from the lender that there are problems with their credit scores.

By checking your credit score before you apply for a mortgage loan, you gain the opportunity to find out if there are problems which you can correct and discrepancies that need to be removed. When you check your credit report, make sure you check all three of the national credit reporting agencies: Experian, Trans-Union and EquiFax.

Review your credit report carefully for items that may be erroneous. If you believe that an item on your credit report is reported in error, you have the right to contest it. To do so, you will need to contact the credit reporting agency and explain why you believe the item is inaccurate. Supporting documentation such as receipts and cancelled checks can help your claim. Alternatively, you can engage a credit report repair services firm to fix your credit report.

If there are derogatory items on your credit report that are accurate but which could cause problems in your loan application, you cannot have them removed; however, you can take positive steps to counteract them. In the event that you have missed payments in the past, take steps now to get your bills current. Even if it means tapping into money that you might be planning to use for a down payment, it is essential that you get your accounts current and keep them that way. Begin by immediately making your payments on time. There is nothing which can lower your credit score more quickly than late payments. Ideally, make an attempt to begin sending in your payments a few days ahead of time to make sure they arrive on time and you do not have any more late payments on your record. If necessary, begin taking advantage of electronic payments in order to make sure your payments are made on time. Over time, this can make significant difference.

Keep in mind that eradicating all of your credit balances is really not the solution. In fact, credit can be your friend when you are looking to make a big purchase such as a home. The key is to make sure your credit is positive, not negative. Toward that end, avoid actually closing out your accounts. Instead, make an effort to pay down your balances and keep them paid down well below the minimum or completely paid off, but do not close the account. When your lender runs your credit to make a decision on your mortgage application, he or she will want to see that you have had a long credit management history.

After reviewing your credit history, if you see that most, if not all of your credit cards are maxed out or nearly maxed out, it is time to sit down and plan an aggressive strategy for paying some of them down. One of the critical factors that often determine your ability to be approved for a mortgage loan is your debt to income ratio. In addition, high credit card balances can drag down your credit score. Therefore, it is important to look at paying off some of your balances.

It is generally better to begin with your highest-rate balances first. Many consumers are tempted to move around balances when they receive an offer from another bank that is good; however, before you do this, remember that the worst thing you can do when you are trying to make a major purchase is to open new accounts.

By following these guidelines, you can improve your credit score and improve your chances of being approved for your home mortgage loan.

How To Choose A Home - Tips To Make Sure You Don't Settle

Content Provided By RISMedia

Finding the home that is right for you can be a time-consuming process. The experts at Move.com offer the following tips to help make sure you don’t just settle for a home, but instead find the home that is perfect for you.

Once you've settled on a couple of neighborhoods where you would like to live, it's time to pick out a few homes to view. Your wish list can remind you which features are absolute requirements and which amenities you'd like to have if possible. When narrowing down your home search, consider:

• Types of homes
• Home purchase considerations
• Home comparison chart
• What to do when you’ve found the right home for you

Types of homes

In addition to single family homes (one home per lot), there are other forms of home ownership to consider as you begin looking for the next place you will call home:

• Multifamily homes: Some buyers, particularly first-timers, start with multiple family dwellings, so they'll have rental income to help with their costs. Many mortgage plans, including VA and FHA loans, can be used for buildings with up to four units, if the buyer intends to occupy one of them.
• Condominiums: With a condo, you own "from the plaster in" just as you would a single house. You also own a certain percentage of the "common elements"—staircases, sidewalks, roofs and the like. Monthly charges pay your share of taxes and insurance on those elements, as well as repairs and maintenance. A homeowners association administers the development.
• Co-ops: In a few cities, cooperative apartments are common. With those, you purchase shares in a corporation that owns the whole building, and you receive a lease to your own apartment. A board of directors supervises management. Monthly charges include your share of an overall mortgage on the building.

Home purchase considerations

Most buyers' first consideration, after neighborhoods are chosen, is the number of bedrooms. As you begin to view homes, keep the following purchase and resale considerations in mind:

• Weigh your needs, budget and personal tastes in deciding whether you want a home that’s a newly constructed, an older home or a home that requires some work—a ‘fixer-upper.’
• One-bedroom condos are more difficult to resell than two-bedroom condos.
• Two-bedroom/one-bath single houses generally have less appeal than houses with three or more bedrooms, and therefore less appreciation potential.
• Homes with ‘curb appeal,’ (a well-maintained, attractive and charming view-from-the-street appearance) are the easiest to resell.
• When resale is a possibility, don't buy the most expensive house on the street, or anything that is unusual or unique. The best investment potential is traditionally found in a less expensive, more moderately sized home on the street.

Home comparison chart

While house-hunting, it's a good idea to make notes about what you see because viewing several houses at a time can be confusing. Create a comparison chart before you begin looking at homes so you can keep track of your search, organize your thoughts and record your impressions.


When you’ve found the right home

Before you begin the home buying process, resolve to act promptly when you find the right house. Every Realtor has stories to tell about a couple who looked far and wide for their dream home, finally found it, and then revealed that "we always promised my Dad we'd sleep on it, so we'll make an offer tomorrow." Many times the story has a sad ending—someone else came in that evening with an offer that was accepted.

Resolve at this point that you will act decisively when you find the house that’s clearly right for you. This is particularly important after a long search or if the house is newly listed and/or under-priced.