Newsletters

by Greg Talbot

EVERY MONTH, "THE HOMESTAND" IS GOING TO POSE A QUESTION TO OUR EXPERT FOR THE "EXPERTS EXCERPT." AS THE TEMPERATURE BEGINS TO HEAT UP IN ARIZONA, OUR EXPERT GREG TALBOT EXPLAINS HOW THE SEASONS AFFECT REAL ESTATE IN ARIZONA.


We call them "snow birds" - they fly west right when the snow falls in the Midwest and East. Result: the population in Arizona balloons. Basically, the over-65 club would be the biggest age category that makes their way to Arizona during the winter. These folks are also the ones with disposable income and the means to purchase a second home. They are not alone though. Many winter visitors come to Arizona for the first time to get out of cold, windy, snowy winters in Chicago, Minneapolis, and New York to name a few areas. For those who don't want to go to Palm Beach or West Palm Beach, and desire a drier climate, they flock to Arizona.

I kid about the "snow birds" but they actually play a major role for investors in Arizona. Many of the vacation homes are bought and sold during the winter months. But, as the "snow birds" head back East for the summer, there are opportunities to snatch up properties. Many of the people who have their homes on the market would like to make a sale before they leave Arizona and the end of winter. Basically, Memorial Day marks the end of winter for many of these "snow birds," so keep in mind that May could be an excellent opportunity to make a profit in Maricopa or Pima counties.

Now you know this is the time to buy, here are the hot spots in Arizona. The main place many of the "snow birds" set up their nests is the Metro Phoenix area, known as the "Valley of the sun." I would say the second city that benefits from the population increase is Tucson, also known as "the Old Pueblo." Heck, even stars such as Paul McCartney have second homes in Tucson, although to my knowledge he has never sung about being a "snow bird." McCartney and the others are just plain smart - the weather is the main draw to Arizona. We have over 320 days of sunshine, but in years past the temperature has risen to over 121 and they have had to shut the airports down. Sometimes even paradise gets too hot. And, we actually call that a "dry heat." For the golf lovers, there are hundreds of golf courses to choose from. Not a golfer? Try fishing and camping which are also big. If you just want to enjoy the warmer weather when it is 25 below zero in Chicago, just pack your bags and check out sunny Arizona. The odds are after visiting during November through March that you will be back, and many times as a buyer of property.

I can help you there. "Snow birds" should contact me because even though we are experiencing a little market correction, there is still a lot of opportunity to purchase house at a discount. So, bring your golf clubs, some sun block and a check book, because once you land in Arizona - you will be buying a property in Arizona too. Hope to see you in the sun!

Greg Talbot
Shining Knight Investments, LLC
gregtalbot11@aol.com
11685 N. Peaceful Night Rd.
Oro Valley, AZ 85737
520-270-9777

Mt. Pleasant, PA - If there was ever a time to buy property in Arizona, Serdar Bankaci, President/CEO of Default Research Inc., says it is now. There are 320 sunny days a year, a golf course everywhere you turn, it is a perfect escape from the winter blues, and foreclosures are skyrocketing.

"Maricopa Country has seen an increase in foreclosure activity of 300% since April of 2006," said Bankaci (www.defaultresearch.com). "With our brand new leads, people looking to be homeowners in Arizona can purchase property that they could not necessarily afford at the previous retail market rate."

Bankaci points out that 87 percent of the homes for sale in the area are single family homes with a median market value of $245,000. These are a result of sub prime loans, decreasing home values and adjustable interest rates. The abundance of homes has created an ideal situation for Greg Talbot, owner of Shining Knight Investments, LLC, in Pima County, AZ.

"With the huge increase in pre-foreclosures, my business has increased," said Talbot. "There is more opportunity to select better homes and also help the homeowner rescue their credit. It is a win-win because the homeowner preserves their credit rating and the bank gets their money."

And, there have been a huge number of homes, as well families in economic distress, for Talbot to help. According to Talbot, the huge increase in foreclosures is causing the high number of unsold homes. The Arizona Daily Star had 9,925 homes listed for sale on Sunday, May 7.

"With 1281 Notice of Trustees Sales filed in April 2007, investors have an opportunity to fix the foreclosure problem," said Bankaci, whose foreclosure data arrives two to three weeks ahead of the competition. "But, this may not be as easy as it sounds. By the time a home reaches auction, it may be too late. Many of the 'great' deals are made prior to the auction."

Talbot knows that the fresh leads from Default Research are key to being the earliest to approach a homeowner.

"You must be the first person at the door to offer the homeowner solutions to their problems. Then they will work with you," said Talbot. "I have a huge advantage by having Default Research's leads sent to me daily. I don't have to waste valuable time down at the county recorder's office nor do I wait 5 days to get this indispensable information from other companies."

Default Research is the national leader in real estate research. More information about Default Research can be found at their website: www.defaultresearch.com.

There needs to be stricter guidelines and laws for lenders in the business of purchase money and refinancing home loans. I am sure this applies to all states both mortgage and trust deed states.

The first area needing tighter regulations is the lender charged prepayment penalty. Lenders say that this early payoff prepayment penalty is necessary to allow flexibility in financing, but it can easily become a large trap for borrowers. This includes investors looking to purchase a pre or post foreclosure property.

The average family that is looking to purchase and/or refinance a home is not particularly mortgage savvy.
The lender offers them a mortgage that has a fixed rate for two years but a prepayment penalty for three years. Two years later when their mortgage adjusts, they are faced with the problem of paying an additional $800.00 to $1500.00 per month. Most families cannot afford this increase and when they want to refinance to a fixed rate mortgage or even sell the property, they find out that they first have to pay off the aforementioned prepayment penalty. This penalty usually runs somewhere between $10,000.00 and $15,000.00. Hence, they now become a victim of foreclosure.

Two things need to happen here: 1) there needs to be a law that states on adjustable rate loans that the prepayment penalty cannot be longer than the adjustable mortgage's first payment change date and 2) that when the lender files a Notice of Default they must waive the prepayment penalty since it is the lender that is now calling the loan due and not the borrower asking for a new loan.

In California, which is a trust deed state rather than a mortgage state, you do not need to have an attorney process the loan. Everything is taken care of by the escrow and title companies. Moreover, a mortgage broker may and usually does the processing of the documents, and can conduct their own escrow for the loans they arrange. They can do this even with an independent lender's money and what has been happening with unconscionable lenders and brokers is that they are submitting extra illegal fees at closing. Those fees are paid right then and there, so the closing can take place. The borrower then has one year from the date of closing to sue for the illegal monies charged as well as for punitive damages. Next step is report the broker to the Department of Real Estate and have the District Attorney investigate. The problem with this is that the average buyer is not even aware of these illegal charges and does not have the money to contact an attorney to begin a lawsuit.

Once again, if you look on the bright side, our investors, with the help of Default Research and their vast knowledge of the subject, are able to help investors recognize those extra charges and have them removed BEFORE closing on the property they are purchasing.

Susan Hillman, Mortgage Loan Consultant
Loan Production Office
Telephone: (760) 586-5223, email: susannhillman@yahoo.com

"Imagine Being Able to Consistently Get Seller's To Sell At A 20% to 50% Discount!"