HAFA is an acronym for Home Affordable Foreclosure Alternatives, a government-sponsored program that helps individuals and families who are experiencing difficulty in selling their homes. In conjunction with the Home Affordable Modification Program (HAMP), HAFA was initiated on November 30, 2009 by the U.S. Treasury Department under the Obama Administration with the goal of revitalizing the housing market.

Via the program, borrowers are provided incentives that will help them take advantage of either a short sale, whereas the borrower and the mortgage servicer agree to sell the home for less than the value of the loan; or a deed-in-lieu of foreclosure, whereas the homeowner voluntarily gives the deed of the property to the servicer.

Here is a great video explanation of HAFA:

www.youtube.com/watch?v=8TXx8rKy-Ow

In simple terms, HAFA helps people quickly sell their homes by giving them pre-approved short sales terms before listing the property. They are fully released from future liability for the first mortgage debt, and can receive $1,500 for borrower relocation assistance. Investors and servicers can also receive financial assistance through the program for administrative costs, processing fees, etc. Keep in mind the program is actually quite complex with many guidelines and rules.

Although the program was initiated in November 2009, it officially began on Monday, April 5, 2010 and will end on Monday, December 31, 2012. Experts say that if the program is successful, it will likely be extended and the terms may be adjusted for more to qualify.

To apply for the HAFA program homeowners should visit or call their banks to inquire about how they can participate. If you’d like some local lenders to answer your questions shoot me an email and I’ll send your their contact info.

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It really does drive me crazy. Why don’t they call up one of the 5,000 agents in Tucson and ask them for concrete statistics and evidence of housing activity in Tucson?

In today’s AZ Daily Star there is an article (South side hit hardest by housing value drop) that has the following graphic:

Year over Year Statistics for Tucson Housing Market

Look I like Zillow.com and the service they provide, but their “Zestimates” and housing statistics in general are never going to be as solid as talking to a local agent who can run actual comparables for you.

If you ever have a question about a home’s value or price trending in a particular area please contact a local agent.

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The Tucson market has shown a level of stability over the past few months that we have not seen for quite awhile; most of the past few years has been a story of gradual but continual decline.

It appears that the market is beginning to right itself from the foundation up as evidenced by the data below. The bulk of sales in the Tucson market resides with homes under the $250,000 level (as it always has) and just as this segment of the market was the first to fall out in the sudden decline 4 years ago it also is the first to recover and appears to indicate a coming upswing in the market.

Market Comparison Snapshot

The data above paints an interesting picture, that of the “luxury market” (homes priced at least twice the market average) still feeling the effects of the economic slowdown while the foundation of the market is already in recovery mode. I wonder if this lag time is indicative of natural progression of a recession where the lower classes are affected immediately while the upper class feels the pinch later as the economy contracts?

Also, the average sales price of homes from $250k-$500k dropped nearly 25% from 2006 to 2010 but that makes sense as the bulk of foreclosures and short sales originate in this same section of the market.

At the very least the data above is encouraging in that it shows a stable market is beginning to emerge and I expect the trend to continue. With mortgage rates at historic lows and with Obama pushing for a small-business friendly bill that will loosen community bank purse strings, lending money should become available for consumers to help aid the recovery of the housing market.

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Dove Mountain is still expanding and one of the builders at the front of the expansion is Miramonte Homes, an established local builder whose attention to detail is evident in their quality home construction.

They are currently building in The Preserve along with another builder (Insight Homes) but have a much more attractive price point; when I was walking through their models over the weekend I was impressed by the build quality and the features that come standard with the home that other builders have available as upgrades.

They have several spec-homes (available for immediate move-in) available, here is one that the broker informed me was “very popular”

We're sorry, but we couldn't find MLS # 20934663 in our database. This property may be a new listing or possibly taken off the market. Please check back again.

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The Tucson Association of Realtors released their March 2009 MLS Statistics report recently and, just like the report from last month,  it paints an encouraging (if bland) analysis of MLS activity during March.

Here are the main highlights from the report:

.. For the third month in a row we see a leveling off from nearly every perspective.. If this trend (less listings/more sales) continues, we’ll start to absorb some of that excess inventory.

The median sales price is down 10% year over year and only moved fractionally from February to March. This is in direct contract to national reports that show a continued downward spiral in values.  Our market usually out performs other parts of the country during this season and this year is no exception.

There is a definite lack of equilibrium in the housing market despite historically low interest rates and increased affordability.  Buyers at all price points are hesitant to move forward. Are we close to the tipping point? It’s very possible.

The bottom line is the market is still flat here in the Old Pueblo, which is still being hailed as a good thing by nearly everyone. I think once the first few fence sitting buyers make a move the floodgates will eventually open to return the market to a proper activity level.

March 2009 Absorption Rate

Current Absorption Rate for the Tucson market stands at 9 months.

“Absorption Rates” means the average number of homes sold per month over a particular period of time. It is a solid indication of market conditions and predicting how long a property may be on the market before being sold.

At 9 months the absorption rate for March 2009 is a definite  improvement over the 12.4 month absorption rate we saw in February.

What constitutes a Buyers Market, a Sellers Market and a Neutral Market?

The amount of inventory determines market sway. A “Neutral Market” is 6 months of inventory. Anything less than that is a “Sellers Market”, and conversely, an inventory of more than 6 months is a “Buyers Market.”

Even with a relatively uneventful month Tucson appears to be on the path to recovery. As I wrote in my February 2009 MLS Statistics post last month I think the Tucson market will continue to remain relatively anemic until mid-summer when things will being to actually pick up.

There it is folks, Tucson MLS Statistics for March 2009. To view the full report click here.

Stay tuned for next month’s April 2009 Statistics report!

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The Tucson Association of Realtors released their February 2009 MLS Statistics today and it paints an encouraging (if bland) analysis of MLS activity last month.

Here are the main highlights from the report:

When comparing this year to ’08 we see very moderate declines and a big improvement over the January comparison… This leveling off indicates we are experiencing more predictable activity and less drama.

The median sales price is now $178,000, 11% lower than last year but remarkably close to the ’05 median sales price of $186,500. It appears that realistic pricing is a strategy that’s taking hold.

Our current listing inventory counts are very encouraging. We now have 7,532 active listings as opposed to February ’08 when we had 9,168. That’s a 17.84% reduction and if you compare it to the mere .75% drop in sales you can see that we’re gaining ground.

The bottom line is that it was a pretty boring month. Which, in this market, is good news (funny how that works isn’t it?).

February 2009 Absorption Rate

Current Absorption Rate for the Tucson market stands at 11.4 months.

“Absorption Rates” means the average number of homes sold per month over a particular period of time. It is a solid indication of market conditions and predicting how long a property may be on the market before being sold.

At 11.4 months the absorption rate for February 2009 is an improvement over the 13 month absorption rate we saw in January.

What constitutes a Buyers Market, a Sellers Market and a Neutral Market?

The amount of inventory determines market sway. A “Neutral Market” is 6 months of inventory. Anything less than that is a “Sellers Market”, and conversely, an inventory of more than 6 months is a “Buyers Market.”

Tucson still is in the throes of a Buyer’s market but appears to be on the path to recovery. As I wrote in my January 2009 MLS Statistics post last month I think the Tucson market will continue to remain relatively anemic until mid-summer when things will being to actually pick up.

There it is folks, Tucson MLS Statistics for February 2009. To view the full report click here.

And for those of you who are wondering what the jousting image at the top of this post has to do with MLS statistics, the answer is.. nothing. BUT, the Arizona Renaissance Festival is in full swing and if you have a chance I would recommend stopping by!

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This is the fourth installment in my Tucson Short Sales series, I would suggest reading part one (Tucson Short Sales – Part 1 – What are Short Sales?) part two (Tucson Short Sales – Part 2 – I’m Ready to Short Sale My Home.. What Are The Repercussions?)  and part three (Tucson Short Sales – Part 3 – How to Short Sale My Home) before reading this article.

After the offer has been submitted to the bank (typically to someone in the Loss Mitigation department), your file will probably be assigned to an intermediary or negotiator. These people have many files just like yours on their desks and their job is to evaluate each offer to see if it warrants further consideration. Many banks have a bottleneck at this stage in the process and simply cannot keep up with the number of short sale packages coming across their desks.

The bank has to know what the actual market value of the home is before it can intelligently evaluate a buyer’s offer. They will usually order an appraisal or Broker Price Opinion (BPO) to determine the market value of the property which will help them decide which course of action to take with an offer (accept, reject, counter).

The next step in the process is usually the one that takes the longest. After a valuation of the property has been completed and the offer has been deemed complete the holder of the note has to decide what to do.

You see, many times a mortgage has been resold by your mortgage company to an investor or group of investors (whether individually or in a “bundle” or other mortgages). When this is the case (the bank doesn’t hold the mortgage note), the investor(s) has to evaluate the offer and choose either to accept, reject, or make a counter-offer.

This step can be even further complicated when there are multiple lenders (80/20 or 80/10/10 loans, for example).

The short sale process typically takes no less than 30 days. There are some lenders, smaller ones usually, who can respond more quickly to an offer. I have seen short sales take seven months from contract submission to close of escrow, and I have seen countless short sales that have gone to foreclosure because the bank did not respond soon enough. This is definitely the most stressful and frustrating part of the short sale process because it involves waiting. And more waiting. And then, more waiting. Sometimes you’ll get lucky and have a responsive lender but nine ten out of times you won’t.

For the next step in the Short Sale process (End Game Short Sales) stayed tuned!

• Tucson Short Sales – Part 1 – What are Short Sales?
• Tucson Short Sales – Part 2 – I’m Ready to Short Sale My Home.. What Are The Repercussions?
• Tucson Short Sales – Part 3 – How to Short Sale My Home
• Tucson Short Sales – Part 4 – The Offer Is In To The Bank
• Tucson Short Sales – Part 5 – End Game Short Sales

If you would like to search the Tucson MLS for Short Sale, Bank-Owned, or Foreclosure homes, search for Tucson Homes for Sale or contact me for a comprehensive list.

If you would like assistance in avoiding foreclosure feel free to contact me for a no-cost consultation.

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1. Tucson Short Sales – Part 1 – What are Short Sales? Since the real estate boom of 2003-2005 the Tucson real...
2. Tucson Short Sales – Part 3 – How to Short Sale My Home This is the third installment in my Tucson Short Sales...
3. Tucson Short Sales – Part 2 – I Am Ready to Short Sale My Home.. What Are The Repercussions? This is part two of my Tucson Short Sales series....

This is the third installment in my Tucson Short Sales series, I would suggest reading part one (Tucson Short Sales – Part 1 – What are Short Sales?) and part 2 (Tucson Short Sales – Part 2 – I’m Ready to Short Sale My Home.. What Are The Repercussions?) before reading this article.

Since I wrote the first two articles in this series the Senate and House passed a Housing Rescue Plan that President Bush is expecting to enact. In short the bill will allow many homeowners who are in financial distress and who purchased a home between January 2005 and June 2007 to essentially refinance their home to 90% of the market value of their home. Read the article about the Housing Rescue Plan here.

We will continue with the assumption that you (the homeowner) has decided to proceed with the short sale process. Because the process is generally complicated with many timelines and necessary documentation, several Consumer Resource Groups have sprung up to assist homeowner’s. If you are considering a short sale please call call one of the below agencies first for FREE assistance/advice on whether a short sale is your best option.

Once you’ve resolved to go ahead with a short sale the process is relatively simple. You market the home as you normally would in a home sale, have showings, entertain offers, etc. Once you have an accepted offer, it is then submitted to the bank along with whatever documentation the lender requires; together this is generally called a “short sale package”.

Once a completed “file” is submitted the bank will then assign the file to a “negotiator” or “intermediary”. These processors generally have many files on their desk at one time and much of the timeline is eaten up here. For the next step in the Short Sale process stayed tuned!

• Tucson Short Sales – Part 1 – What are Short Sales?
• Tucson Short Sales – Part 2 – I’m Ready to Short Sale My Home.. What Are The Repercussions?
• Tucson Short Sales – Part 3 – How to Short Sale My Home
• Tucson Short Sales – Part 4 – The Offer Is In To The Bank
• Tucson Short Sales – Part 5 – End Game Short Sales

If you would like to search the Tucson MLS for Short Sale, Bank-Owned, or Foreclosure homes, search my Tucson MLS or contact me for a comprehensive list.

If you would like assistance in avoiding foreclosure feel free to contact me for a no-cost consultation.

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Related posts:

1. Tucson Short Sales – Part 1 – What are Short Sales? Since the real estate boom of 2003-2005 the Tucson real...
2. Tucson Short Sales – Part 2 – I Am Ready to Short Sale My Home.. What Are The Repercussions? This is part two of my Tucson Short Sales series....
3. Tucson Short Sales & Lender Owned Homes Continue to Rise This morning I went back through our MLS data and...

I knew that sooner or later the First Magnus debacle was caused not only by questionable lending pratices but also on other, less obvious, means.  After nearly a year since their collapse we find out that First Magnus violated Real Estate Settlement Procedures Act (RESPA) by paying mortgage brokers incentives to assist them with originating FHA loans.

For those of you who aren’t part of the real estate industry, what they did was blatantly ILLEGAL!

The Arizona Daily Star just published this article regarding First Magnus and they will be publishing an expanded article in tomorrow’s paper. A quick excerpt:

HUD found that First Magnus paid $58,571 in incentives from Jan. 1, 2003 to Dec. 31, 2005 to seven brokers for the origination of 169 FHA-insured mortgages totaling more than $24 million, according to the report.

Tomorrow’s edition should detail these illegal activites and hopefully pinpoint these crooked mortgage brokers. And all this while First Magnus has re-opened shop as Stonewater Mortgage Corp.

Kind of makes you sick, doesn’t it?

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Good Morning everyone, the Tucson Association of Realtors, (TAR), has released the Tucson Housing Market sales statistics for April 2008. Here is a summary of the important points:

Sales Analysis

Average and Median Sales Price Decreases
Average and median sales price both decreased in April 2008. Average sales price declined to $253,729 – down 8.91% from April 2007 and down nearly $6,000 from last month! Median sales price also declined nearly $30k from April 2007.

Active Listings Continue Declining
Active listings have declined since January and in April 2008 stood at 8,808 units. With the summer season coming up we should see a slight rise in inventory.

Days on Market Rises Again
Average time on market continues to float near our highest level in several years with 78 days the average DOM for April 2008.

Home Sales Snapshot
Home Sales Volume Decreased 49.31% from $367,164,710 in April 2007 to $246,878,039 in April 2008. Graph on page 5.	Average Days on Market Increased 35.3% from 65 days in April 2007 to 78 days in April 2008. Graph on page 10.
Home Sales Units Decreased 26.17% from 1,318 in April 2007 to 973 in April 2008. Graph on page 4.	Pending Contracts (not yet closed in escrow) Increased 27.11% from 1,217 in April 2007 to 1,547 in April 2008. Graph on page 7.
Average Sales Price (all residential types) Decreased 8.91% from $278,577 in April 2007 to $253,729 in April 2008. Graph on page 6.	Active Listings Decreased 15.2% from 10,387 in April 2007 to 8,808 in April 2008. Graph on page 9.
Median Sales Price Decreased 13.3% from $2224,921 in April 2007 to $195,000 in April 2008. Graph on page 7.	New Listings Decreased 20.87% from 3,085 in April 2007 to 2,441 in April 2008. Graph on page 11.

Tucson is feeling the final repercussions of the housing market decline and credit crisis. All market indicator bearings are in the red and the sole statistic that is on the rise is the Days on Market! All of this points to the Tucson market finally coming to terms with the events of the past few years and sellers who are finally realistic about the value of their home.

As I wrote about last year (Tucson May 2007 Housing Report), a large part of the inflated market that seemed to exist in Tucson were the homeowners who still believed that they could fetch top dollar for their homes like they could back in 2004-2005. Once it became apparent this was not the case homes began to fall off the market and/or were priced more realistically.

Foreclosures and short sales continue to have a place in the Tucson market but it certainly seems that these two issues are not nearly as rampant as they were in the better part of last year. Perhaps a sign of things to come?

So there you have it, Tucson real estate news for April 2008. If you have any questions or are in the market for a home in Tucson please feel free to contact me on my Tucson Real Estate website!

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