Home Showing Hints

Follow these following hints for successful home showings and the Realtors will love you:

Staging - Staging is simply preparing your home as if you were setting a stage for a play.  Make it feel very complete and comfortable for the buyer as they tour the property.


Descriptive Signing - Another specialty technique involves the use of small, professionally printed signs approximately two inches high and two to four inches wide.  The signs can be placed throughout the home pointing out specific highlights of the property.


Should You be there? - It is almost always best that a seller vacates the property when it is being shown.  Many potential buyers feel uncomfortable if the seller is in the home as a buyer will want to look at the property very carefully (ie. storage areas, closets, cabinets, under beds and in the garage).


Children and Pets - If children are present during the showing, you should make every effort to keep them out of certain areas of the home while those portions of the home are being shown.  Also, some buyers are allergic or afraid of pets.  It's a good idea to keep pets out of the home or caged during the showing.


Cards Left at Showings - It is very important for you to provide the listing agent with all of the business cards of agents which have been left each time the property has been shown. The listing agent should receive the information on the cards as soon as possible.  This will allow your agent to make contact with the buyer's agent and receive feedback on the showing. 

Linda Shank Broker Owner Linda Shank and Company is a 32 year real estate veteran in Phoenix's Southeast Valley.  Contact her at www.ISellAZSunshine.com 

Staging Your Home--How to Remove Oil Stains on a Garage Floor

You can remove most of an oil stain with elbow grease and scrubbing.  Start removing the surface oil by sprinkling some cat litter on it to soak it up.  Then clear away the cat litter and concentrate on the stain.  Make a paste of hot water and dry laundry or dishwasher detergent.  Use a stiff bristle scrub brush to scrub the area with the paste.  Hose the area and let it dry.  Another way is to use a product such as Spray 'n Wash on the stain along with the detergent and let it sit for 10 minutes.  If that doesn't do the job then spray on some oven cleaner.  Use just a small amount, wash it down thoroughly and keep children and pets away from it.



Linda Shank Broker Owner Linda Shank and Company is a 32 year real estate veteran in Phoenix's Southeast Valley.  Contact her at www.ISellAZSunshine.com

Staging At Home 101 Part II

Removing clutter is only one aspect of getting a smaller home ready to sell---or just living contentedly in it.  Box up items you don't absolutely need (especially collections) as these tend to distract curious buyers.  Temporarily part with your modern abstract art or country-themed baskets of dried flowers.

Some big pieces of furniture won't fit in modestly sized homes.  Look at the scale of your furniture and don't forget depth.  Things can be a lot deeper than you realize and all of a sudden, there's no room to walk because that deep, comfy chair you love comes halfway out into the room.
Sellers remove furniture from rooms that feel overstuffed.  If you have a huge china cabinet in a small dining room remove it or at least take the Hutch off.  Otherwise, it's very distracting.

Chose your color palette carefully.  Bright, loud colors make a space feel smaller because they jump across the room at you.  You want the walls and your furniture to recede.  Don't be matchie matchie.  Eliminate the high contrasts....the same colors should move throughout the house.  Blend colors in more medium tones. Using the same color of carpet or the same hardwood throughout the home to maximizes your perception of space.

Linda Shank Broker Owner Linda Shank and Company is a 32 year real estate veteran in Phoenix's Southeast Valley.  Contact her at www.ISellAZSunshine.com

Staging At Home 101 Part I

Here's a good rule of thumb:  If you don't see it in a model home, then it shouldn't be in your house!
Hide photographs, dishrags, toiletries, garbage cans, newspapers, refrigerator magnets and other items in your home that personalize it.  If that seems a little too much then designate a special place for picture frames like the nightstands and try storing items like toothbrushes in cool leather containers with lids.  You MUST become a master of disguise.  


Furniture can qualify as clutter too so "edit" unnecessary pieces.  Or, rent nice pieces from a Home Stager for a monthly fee to create the look that you want.  Arrange it so there is a clear traffic pattern making it easy to walk from one room to another.


Stick with neutral palettes, painting walls white or warm beige, highlighting baseboards and molding with a slightly darker color than your base.  The ceiling should be the lightest shade which creates a feeling of height.  Use a bold accent color to draw the buyer's eye from one area of the home to another.


Highlight the home's selling points.  Place brightly colored candles on the fireplace mantle or bay windowsill, a bright new dish towel by the stainless steel appliances, a brightly colored bowl with fresh green apples or bright lemons on top of a granite island.  Complimentary colors attraction the buyer's attention too!!!

And, remember the first thing that a prospective buyer should see when they enter your home should be a "WOW" factor or the focal point!!! You need to have something that says "keep coming".


Linda Shank Broker Owner Linda Shank and Company is a 32 year real estate veteran in Phoenix's Southeast Valley.  Contact her at www.ISellAZSunshine.com

FHA Conditions that will Require Automatic Repair for Existing Properties

*Inadequate access/egress from bedrooms to exterior of home
*Leaking or worn out roofs (if 3 or more layers of shingles on leaking or worn out roof, all existing shingles must be removed before re-roofing)
*Evidence of structural problems (such as foundation damage caused by excessive settlement)
*Defective paint surfaces in homes constructed pre-1978
*Defective exterior paint surfaces in homes constructed post-1978 where the finish is otherwise protected.

While not all inclusive, this should give you an idea what issues might concern an FHA appraiser doing an appraisal on your home.


Linda Shank Broker Owner Linda Shank and Company is a 32 year real estate veteran in Phoenix's Southeast Valley.  Contact her at www.ISellAZSunshine.com

Minor Property Conditions that FHA does NOT REQUIRE Automatic Repair

 *Missing Handrails

*Cracked or damaged doors exit doors that are otherwise operable

*Crack Window glass

*Defective paint surfaces in homes constructed post 1978

*Minor plumbing leaks (such as leaky faucets)

*Defective floor finish or covering (worn through the finish, badly soiled      carpeting

*Evidence of previous (non-active) Wood Destroying Insect/Organism damage where there is no evidence of non-repaired structural damage

*Rotten or worn out counter tops

*Damaged plaster, sheet-rock or other wall and ceiling materials in homes constructed post 1978

*Poor workmanship

*Trip hazards (cracked or partially heaving sidewalks, poorly installed 

carpeting)

*Crawl space with debris and trash

*Lack of an all weather driveway surface

While not all inclusive, this should give you an idea what issues might concern an FHA appraiser doing an appraisal on your home.

Linda Shank Broker Owner Linda Shank and Company is a 32 year real estate veteran in Phoenix's Southeast Valley.  Contact her at www.ISellAZSunshine.com

Protecting Tenants at Foreclosure Act

The Federal Protecting Tenants of Foreclosure Act enacted into law a little over a year ago trumps Arizona law by requiring purchasers of home from foreclosure sales to honor certain existing leases.  They must also provide a 90-day notice prior to suing for eviction.  

There are exceptions and qualifications purchasers should be aware of prior to buying a foreclosure property.  Purchasers who buy with the intent to occupy the home as their primary residence are not required to honor existing leases but still must give the tenant a 90-day notice to vacate before they can sue to evict the tenant.  


The law also does not apply to tenants or leases that are not bona fide.  To qualify under the law the foreclosed owner or his/her spouse, child or parent cannot be listed as the tenant.  Furthermore a lease must be the result of an arms-length transaction and the set rental rate cannot be substantially below fair market.  Lastly, the lease must have been signed prior to the foreclosure notice being recorded.

Linda Shank Broker Owner Linda Shank and Company is a 32 year real estate veteran in Phoenix's Southeast Valley.  Contact her at www.ISellAZSunshine.com

How To Pick Your Wine Like a Pro

First....Prepare, prepare, prepare!  Prior to tasting different wines make sure to avoid coffee, sodas or any other strongly flavored food or drinks!!!  Also avoid any heavy perfume or cologne---it can overpower the wine's aromatic features.  Pour the wine into a glass about 1/3 full and freely swirl to expose it to oxygen which opens up it's aromas and flavors.  Grasping the bowl of the glass can affect its temperature so hold the glass by the stem with your thumb and forefinger.

Second...The Eyes Have It! Color can tell you a lot about a wine.  Hold your glass at angle against a white background.  A young red wine may have deep dark purple colors while an older aged red wine will have brownish or brick colors.  A deep golden white wine may suggest barrel aging or an older wine.

Third...The Nose Knows! Grasp the stem of the glass base while keeping it on the table and give the glass a good swirl. Place your nose in the glass and deeply inhale a couple of whiffs.  You are identifying fruit characteristics...berry or stone fruit; earth...soil, mushrooms; vegetation...herbs, green veggies; nuts...almonds, walnuts; or wood influence...oak, smokiness. "Off" aromas of vinegar, wet paper or nail polish remover are signs that the wine has issues.

Fourth....Sip and Savor! When you sip it's important to let the wine reach all areas of your mouth.  Sweet, salty, sour and bitter taste elements are in different areas of the palate.  Assessing the levels of flavors, tannins, body and acidity should be your goal. Flavors should correspond with the aromas you've evaluated,  Does the flavor disappear quickly or linger?  Faint, rich or bold flavors??? Tannins are astringent and can dry your mouth and gums.  Body is the weight of the wine in your mouth.  Does the Acidity make the wine mouth watering?

Finally....Time to Make a Decision!  This is where your overall impressions come into play.  Think about the balance of acidity, tannin, fruit flavors...are they in balance?   Do any over power the others?  Does the wine feel rich or delicate?  Can you sense the quality?  Once, you've come up with your conclusions, it's purchase time!!  Cheers!!! 


Linda Shank Broker Owner Linda Shank and Company is a 32 year real estate veteran in Phoenix's Southeast Valley.  Contact her at www.ISellAZSunshine.com

Why is there a Limit on the Number of Financed Properties?

In 2008 Fannie Mae reduced the number of allowable financed properties from ten to five, only to reverse it a year later.  Unfortunately, a majority of the lenders have refused to change back to the ten mortgage cap.   Banks are licking their wounds with all of the foreclosed investment properties from back in the day.  Remember the 100% stated, investment program? Every bank is different.   Most banks will only permit up to four mortgages, maybe five, as long as the fifth property is a primary residence.  The lenders allowing financing for up to ten properties typically do not offer the best brother-in-law rates and may only loan on one property, limiting their investment exposure. Question:  A buyer would like to finance two investment properties.   He already owns three properties.  But there is a fourth his ex-wife received in the divorce and his name is still on the mortgage.   He is having a hard time finding a lender?  Why?   The issue with the property in the ex-wife's name is tricky.  Fannie Mae's guidelines state that if you have a court order (such as divorce decree); the lender is not required to evaluate the payment history.     Conventional Wisdom tells us that as long as there is a divorce decree that spells out the transfer of title to the ex-wife and she can provide bank statements and/or cancelled checks proving she has been making the payments out of her own checking account, that would be cool with the lender.  But lender's don't think that way in today's market.    The bank's will have their own interpretation. FYI:  Some lenders gauge the number of mortgages NOT properties.  So, if you have three investment loans, and a first and second on your primary, that may be considered five mortgages. Yes, It Is True: One bank will not allow out of state borrowers to finance investment properties.  It is gonna hurt if the loan officer is not aware of that cute nuance until underwriting.

FHA APPRAISAL REQUIREMENTS - GENERAL RULES TO REMEMBER

Think of Safety and Soundness as best describing the FHA Appraisal Requirements as listed below:

Safety - FHA underwriting guidelines require that lenders review the appraisal to see if the appraiser has made note of property conditions that will affect the health and safety of the occupants.

Soundness - FHA underwriting guidelines require that lenders review the appraisal to see if the appraiser has made note of property conditions that jeopardize the soundness and structural integrity of the home.

When an FHA appraisers do an appraisal they are making sure that their aren't any safety hazards and that home is structurally sound. 


Linda Shank Broker Owner Linda Shank and Company is a 32 year real estate veteran in Phoenix's Southeast Valley.  Contact her at www.ISellAZSunshine.com

Are You Eligible for HAMP-Home Affordable Modification Program?

In order to be considered for a loan modification under HAMP, you must meet the following basic criteria:

1. Primary Residence -This must be your primary residence.
2. Date - The loan must be dated prior to January 1, 2009.
3. Size Limit - The loan must be equal to or less than $729,750.
4. Hardship - Borrower must demonstrate a hardship or change in circumstances which make it more difficult to pay the loan such as a reduction in household income, increase in necessary medical bills or a significant increase in the monthly loan payment due to an interest rate increase.
5. Debt to Income Ratio - First loan payment which includes principal, interest, taxes, insurance and HOA dues equals more than 31% of the borrower's current gross income.
6. Current Income - Borrower must show adequate current income to make the reduced payment if the modification is allowed.


Lender loan modifications can be a forbearance agreement, interest rate reductions, conversion of ARM's to fixed rate loans, deferral of past due payments and in rare instances even principal reductions.

Unfortunately, negative equity is not sufficient grounds for a modification!!!!  So it's best to explore other options (with a lawyer or real estate broker) such as a short sale before walking away from a home and letting it go into Foreclosure.




Linda Shank Broker Owner Linda Shank and Company is a 32 year real estate veteran in Phoenix's Southeast Valley.  Contact her at www.ISellAZSunshine.com

Fannie Mae Conventional Loans are now requiring a 2nd Credit Report

Lenders must now obtain a 2nd credit report, no earlier than 7 days prior to funding, on all conventional loans.  Any new credit inquiries must be explained, and any new credit obligations must be re-underwritten with those debts included in the qualifying ratios.

Jay Starks @ Bell Mortgage states they will not be required to obtain a new credit score and they will not be charging the borrower for the additional credit report at this time.

Jay further comments that he would not be surprised to see FHA and VA follow this path. And, it is possible that investors may decide this is a great idea and require lenders to do the same on all loan files regardless of what the agencies mandate.

Linda Shank Broker Owner Linda Shank and Company is a 32 year real estate veteran in Phoenix's Southeast Valley.  Contact her at www.ISellAZSunshine.com 

Buyers Beware of a 2nd Credit Report done prior to Closing your Loan

This just in from Jay Starks @ Bell Mortgage:

FNMA and Freddie Mac are on the verge of requiring lenders to pull a 2nd credit report just prior to funding.  When they do, we expect all of our secondary market investors to do the same, and they will probably require us to do so on government loans as well as conventional files.  The ramifications of this are enormous:

 

1)  Small FICO score changes due to something as simple as a slightly higher credit card balance could change a customer's interest rate, or cause the loan to be denied, at the last minute.

 

2)  New debts or obligations could cause a customer to no longer qualify.

 

3)  Recently recorded judgments or collection accounts that were not on the original report could derail a transaction just before funding.

 

 

I know that many of you counsel your clients regarding their use of credit while they are shopping for homes or while they are in escrow, but it will be more important than ever going forward that we all work together to remind them of what can happen.

 

No more moving back in with Mom and living on charge cards while you save up your down payment!

 

Have you Heard of the Red Flags Rule?

There is a new regulation called the "Red Flags Rule."  It requires certain businesses to not only detect identity theft warning signs but also to spell out what it would do when it finds something suspicious such as reporting and planning to alert the "victim".  The "Red Flags Rule" applies to financial institutions and "creditors".  Congress left the definition of  "creditors" somewhat open ended and the FTC created language in the Rule that includes within that definition any business that regularly extends or renews credit.  Further more, since the FTC deems that the Rule can apply to any business that allows a payment plan or accepts deferred payments for goods or services, this could include doctors, lawyers, brokers and mortgage bankers, escrow companies and other real estate related business.




Linda Shank is the Broker/Owner of Linda Shank &  Company in Gold Canyon AZ.  She can be reached @ lindashank888@gmail.com 

How to Hold Proper Annual Meetings

To hold and have effective and by the book annual meetings, the HOA needs to consider the following issues:

Does your annual meeting have to be held on a certain date?

Which members are entitled to notice and/or entitled to vote?

When must notice of the annual meeting be given?

What is the quorum requirement for the annutal meeting?

Is Cumulative voting required or allowed, and if so, what does that mean?

What matters must be part of the meeting other than the elections of directors?


Must certain documents be included with the notice of the annual meeting?


Do the governing documents require the election to be held in a certain manner?


Is a nominating committee required?  If so, who appoints the members and when?


How many members need to be on the board?


What is the length of term of the board members?


Does your board have staggered terms?


If Board members have been appointed, when does their term expire?


Do board members need to be members of the association?


Do board members need to be members in good standing?


Are members of the architectural committee elected or appointed, and if elected, who elects them?

 If the association fails to follow the proper requirements for all of the above issues, a member could challenge the results of the annual meeting.  The association can change the requirements by amending the articles or bylaws.  If the association is violating any of the requirements, it should consider changed the requirements or changing the way in which it holds its annual meetings.

Linda Shank is a 32 year real estate veteran in Phoenix's Southeast Valley.  You can reach her at www.ISellAZSunshine.com

Could your HOA Prevent you from Renting your Home?

In Arizona many people buy residential property as an investment and then rent out the the home full time or at least some portion of the year.  Additionally with the current declining market and the inability to sell a home, renting it until the market improves has become increasingly popular and necessary.  But, WAIT A MINUTE....could your Homeowner's Association Covenants Conditions &  Restrictions (commonly known as CC&R's) prohibit you from leasing your home??? Maybe so. CC&R's regulate the homeowner's use of their property restricting everything from the color of the home, awnings, holiday decorations, pets, outdoor basketball hoops and landscaping.


During the recent housing boom builders included restrictions prohibiting homeowner's from renting their properties to limit the number of rental units in a community.  These builders/developers and their lenders believed that the number of rentals in a community affected the value of the property because of crime that often occurs in rental property.  Now many Homeowner's Associations are seeking to amend their CCR's to include a restriction preventing rentals. While these associations might find this to be a difficult process as there have been no case law that addresses this issue...but you never know what can happen. 



The law in Arizona clearly states that if you choose to live in a HOA (Homeowner's Association) that has CC&R's you have a binding contract with the HOA and are accepting the restrictions associated with your property.  There is a contingency in the Arizona Associations of Realtor's resale purchase contract that allows the Buyer a period of time to review, accept or reject the CC&R's after their offer has been accepted.  ALWAYS carefully review the CCR's (provided by the Title company) to determine whether or not you must occupy the home and not rent it out.  REMEMBER CC&R's can be amended.  A HOA that doesn't have a rental restriction today may have it arise as an issue at a later date.


Linda Shank is a Broker/Owner & Certified Residential Specialist in the Southeast Phoenix Valley who has been selling real estate since 1978.  She is experiencing her third down market cycle.  Contact her at  www.ISellAZSunshine.com 

WHAT IS A HOMEOWNER'S ASSOCIATION (HOA) ASSESSMENT LIEN?

Once a homeowner becomes delinquent on their monthly fees (assessments), the HOA attaches an assessment lien to the homeowner's property for the benefit of the HOA.  This assessment lien allows the HOA to sell the homeowner's property to repay delinquent fees owed to the HOA.  Arizona law defines that an HOA assessment lien may only be imposed for past due assessments, late fees, collection fees and attorney's fees relating to the past due HOA assessments. An assessment lien foreclosure lawsuit can only be filed if the homeowner is delinquent by at least $1,200 in overdue assessments or it is a least one year past due.   If the HOA begins its foreclosure lawsuit too soon, the lawsuit can be dismissed.


An HOA assessment lien also operates as a cloud on the title which prohibits the seller from selling or refinancing the property until the HOA assessment lien is paid off.    Most assessment liens are automatically extinguished if collection proceedings are not brought within 3 years.  Furthermore, once a property is foreclosed upon, the HOA assessment is extinguished and the HOA essentially loses whatever monies they are owed.



Linda Shank Broker Owner Linda Shank and Company is a 32 year real estate veteran in Phoenix's Southeast Valley.  Contact her at www.ISellAZSunshine.com

REAL ESTATE MOVES-TOP MOST FORGOTTEN ITEMS

When you are running around on moving day, here are some items to remember:

A. Copies of family medical records, vet records and prescriptions to transfer to a destination pharmacy.  Also your child's permanent school record and shot records.


B. Anything that you have placed in a hidden spot....like jewelery, wills or other valuables.


C. Check with the dry cleaners to make sure you haven't forgotten to pick up your favorite piece of clothing.


D. Keep your new address handy....you may be so stressed that you can actually forget it.


E.  Leave out cleaning supplies for a final cleaning.  Many of these items mover's won't transport anyway.


F.  Don't pack your garage door openers and appliance instruction manuals.  Put them in the cabinet over the stove with a sign for the movers "Don't Pack" on the doors. Spare house keys, mailbox keys and pool keys should be placed there too.


G. Don't forget your pets.  Make arrangements for their transport....just don't leave them with the house....like so many people are doing these days.


H.  Open a destination bank account about a month before your move so that you will have immediate access to your funds and local bank checks.  This also gives the Title company an account for the transfer of closing funds from the sale of your home.


I.  Collect all the spare keys (from neighbors or other outside hiding places) and leave them in a predetermined spot for the new owners.

DON'T MAKE MAJOR CREDIT PURCHASES DURING LOAN QUALIFICATION

Home buyers---don't go on a spending spree using credit if you are qualifying to purchase a home. Your loan pre-approval is subject to a final evaluation of your credit report just a few days prior to closing. Every $100 you pay per month on a credit payment could cost you about $10,000 in home eligibility ie. $300 car payment could mean that you qualify for $30,000 less in a mortgage. Even if you have sizable savings, don't make any large purchases until after closing. The last thing you want to happen is to have your loan declined and lose your new home.


Linda Shank Linda Shank and Company is a 32 year real estate veteran in Phoenix's Southeast Valley.  Contact her at www.ISellAZSunshine.com

Renter's - Is it time to Renegotiate your Lease?

Apartment vacancies hit a 30-year high in the fourth quarter and left landlords scrambling to retain their existing tenants plus trying to attract new ones.

The vacancy rate ended the year at 8%.  This is the highest level since a New York research tracking firm surveying the top 79 U.S. markets started to tally vacancies plus rents in 1980.  San Jose CA, Seattle, San Francisco saw rents fall 3%.


Landlords must now entice tenants to renew leases.  Incentives like Starbucks gift cards, repainting the unit and cleaning carpets are just a few of the enticements landlords are implementing.


If you are renting a place, now might be a good time to renegotiate your lease.

Linda Shank is a 32+ year real estate veteran in the Phoenix southeast valley.  You can contact her at lindalshank@msn.com




Linda Shank is a real estate broker w/Linda Shank and Company in the Southeast Phoenix Valley.  Contact her at LShank5179ataol.com

FHA Requires Buyer and Seller Signatures to be Live---Not Computerized

In the age of technology, even a signature on a document can be added by a computer program.  HOWEVER, FHA along with many of the large investors requires that the signatures of both buyers and sellers on all initial and final documents such as the contract and final settlement statement be "LIVE" or "WET".  Please keep this requirement in mind, especially when you are dealing with corporate sellers in the case of REO properties.  If you know ahead of time that a live signature is needed, it can help prevent delays to the closing process.

 Information courtesy of Sherri Buttler, Sun American Mortgage, 480-467-1088, Mesa Arizona.

Staging Your Home - First Impressions

When a buyer pulls up in front of your home this is your one and only 15 second chance for a POSITIVE first impression.  Here's what to do and not to do:


* Don't park yours cars in the driveway.
* Have some color in your yard....spring plantings or potted plants.
* A large tree or two can further enhance your home's curb appeal.
* Charm potential buyers with a courtyard fountain or some tasteful yard art by the entry.
* The backyard is important too.  Remove dead plants, trim trees, shrubs and add some flowers.

Linda Shank, a 32 year veteran,  is Broker Owner of Linda Shank & Company  Gold Canyon Arizona  Contact her @ http://www.ISellAZsunshine

What you Should Know about FHA loans

Loans can be underwritten by an approved lender which includes most of the major banks in the country.  FHA has the some high loan limits as Freddie Mac and Fannie Mae (which have been extended to the end of 2010).  You can buy a home with a 3.5 percent down payment as compared to at least 10 percent down for a Freddie Mac or Fannie Mae home.  You can get your loan scored for approval through a variety of underwriting engines including Fannie Mae's Desktop Underwriter and Freddie Mac's Loan Prospector.



 Linda Shank is a Real Estate broker in the Phoenix Southeast Valley Gold Canyon area.  She can be contacted at www.ISellAZsunshine.com

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Do I have to Sell my Home to Qualifty for the Homebuyer Tax Credit

Here's a question that keeps popping up:

I'm already a homeowner.  If I buy another home ofter Nov. 6, 2009 to use as my principal residence, do I have to sell my home to qualify for the home buyer tax credit?

Answer:

No.  If you meet all of the requirements for the credit, the law does not require you to sell or otherwise dispose of your current principal residence to qualify for a credit up to $6,500 when you buy a replacement home to use as your principal residence.  The requirements are that you must buy, or enter into a binding contract to buy, the replacement principal residence after Nov. 6, 2009 and on or before April 30, 2010 and close on the home by June 30, 2010.  Additionally, you must have lived in the same principal residence for any five-consecutive-year period during the eight-year period that ended on the date the replacement home is purchased.  For example, if you bought a home on November 30, 2009, the eight-year period would run from December 1, 2001 through November 30, 2009.



Information courtesy of Jay Starks, Bell America Mortgage, www.jaystarks.com

Do this first before you Buy a Home

You found your dream home and are ready to make an offer.  Do these four investigative measures before you sign on the dotted line.

1.  Talk to would-be neighbors.  Ask how they like the area, how are the schools or if there are any problem activity nearby.


2.  Check your commute.  Drive from your possible new home to work during rush hour to see how long it will really take.  If you use the bus, then take the daily bus you would use to commute.


3.  Check crime data and sex offender databases.  For crime statistics go to faxnet1.org or search the internet for your local crime statistics link.  For sex offenders go to azsexoffender.org or search the internet for your local sex offender database line.


 4.  Read up.  Investigate the location of nearby dairy farms, jails or proposed freeway developments or alignments.  Call local Planning and Zoning for additional proposed developments.

5.  Make multiple offers on multiple properties.  You can make sellers compete for your business.  Just make sure the Realtor provides the correct verbiage so that you don't end up buying several properties. This won't always work but in the current Seller's market it's worth a shot.





Linda Shank is a local real estate broker in the Southeast Phoenix Valley.  She can be reached on her website www.ISellAZSunshine.com or on this blog.   

Unforeseen Tax Issues Triggered by Foreclosures & Short Sales

SURPRISE! SURPRISE! SURPRISE!  Individual homeowner's facing foreclosure, short sale or a Deed in Lieu of Foreclosure would be wise to check with their income tax professional to determine what income tax impact they might face down the road.  There are two tax situations (which can get quite involved...Principal residence? Business or Investment Property?, Recourse or Nonrecourse debt?) to review when looking at giving back a property to cancel or release debt.  


(1)  Recognition of gain or loss on the transaction


(2)  Recognition of cancellation of debt income (COD)



Only your tax professional can really determine how this affects you personally so spend a few dollars up front to determine your course of action.  It's like adding insult to injury...first you
lose your home and then you get zapped with an unexpected tax bill.


Linda Shank is a Broker/Owner & Certified Residential Specialist in the Southeast Phoenix Valley who has been selling real estate since 1978.  She is experiencing her third down market cycle.  Contact her at her website www.ISellAZSunshine.com

Easy Short Sale Explanation

Here's my definition in a nutshell: A short sale is nothing more than negotiating with loan holders a payoff for less than what they are owed. Otherwise, a sale of debt generally on a piece of real estate, short of the full amount owed. It does not extinguish the remaining balance unless this is clearly settled in the acceptance of the offer. Often a bank will allow a short sale if they believe that it will result in a smaller financial loss than foreclosing since there are legal and other carrying costs that are associated with a foreclosure. This occurs on a daily basis since many homes have loans that are considerably higher than the current value of the home. If you would like my Homeowner's Short Sale 16-Step Instructions emailed to you please contact me through this blog site.

Linda Shank Broker/Owner Linda Shank & Company is a 32+ year veteran of Arizona Real Estate.  Contact her at www.ISellAZSunshine.com