Merry Christmas from the Burkhardt Team

We at the Burkhardt team would like to wish everybody a Merry Christmas. Please remember during all the hustle and bustle that the true reason for Christmas is to remember the birth of our lord and savior Jesus Christ. Also remember to spend a moment with family and friends and if you can't be there a phone call can be pretty special to your loved ones.
Merry Christmas to all!!!!

Reverse mortgage gets affordable

BY marcie geffner, 

Bankrate

© Copyright 2010 Bankrate, Inc. All rights reserved.

Bankrate — 12/06/10

The reverse mortgage has matured.
These loans, which allow seniors to spend their home equity without selling their home, have historically been cumbersome and expensive. But new options now empower seniors to tap smaller amounts of equity in a more affordable way, according to Peter Bell, president of the National Reverse Mortgage Lenders Association, a group in Washington, D.C., that represents lenders and investors in the reverse mortgage business.
"Some changes from the market, from the regulatory side and in the counseling, have really improved the value proposition for a lot of seniors from what has been the traditional perception of reverse mortgages," he says.

Cheaper mortgage insurance

The biggest change is the introduction of a new reverse mortgage, called the Home Equity Conversion Mortgage Saver option, or HECM Saver. It has a cheaper upfront mortgage insurance premium, or MIP, compared with the traditional HECM reverse mortgage, now known as the standard option.
Mortgage insurance protects lenders from loan losses, though borrowers pay the cost. Most reverse mortgages are insured through the Federal Housing Administration, or FHA, a division of the Department of Housing and Urban Development.
The trade-off, due to the lower MIP and other program changes, is a 10 percent to 18 percent reduction in the maximum loan amount allowed on the saver option, and 1 percent to 5 percent on the standard option, depending on the borrower's age and interest rate, Bell says. The lower loan amount allowed on the saver option means the FHA's risk exposure is lessened.
"In exchange for taking less money, the borrower gets to pay a 0.01 percent upfront MIP instead of a 2 percent upfront MIP," he says.
The upfront MIP is based on the value of the house, not the loan amount. But still, the savings are clear. On a home worth, say, $250,000, the upfront MIP on the saver option would be just $25, while the upfront MIP on the standard option would be $5,000. That's a saving of $4,975.
Borrowers also pay an annual MIP of 1.25 percent of the outstanding loan balance on either the saver or standard option.

Lower origination fees

Another change is that many lenders have reduced or eliminated their origination fees on reverse mortgages, according to Barbara Stucki, vice president of home equity initiatives at the National Council on Aging, a nonprofit service and advocacy group for older Americans, based in Washington, D.C. The maximum loan origination fee was capped by law at $6,000 several years ago, but lower fees are now commonplace.
"Some banks charge no origination fee or a reduced origination fee, and some may charge little or nothing in the way of servicing fees," Stucki explains.
That could mean savings for borrowers, but it also means borrowers must shop around as the fees are no longer standardized. A low fee could be offset by a higher interest rate.

Lower interest rate

A third recent change is that lenders can now use a minimum expected interest rate of 5 percent, instead of 5.5 percent, to calculate the maximum loan amount, Bell says. That lower rate means homeowners can borrow more money at a lower cost.
Borrowers may be tempted by the fixed-rate option, but Susanna Montezemolo, vice president of federal affairs at the Center for Responsible Lending in Washington, D.C., says the adjustable rate may be a smarter choice because the fixed rate requires that the borrower tap the full amount of equity upfront.
"For the majority of people, it makes more sense to take out a minimum amount upfront and then have access to that line of credit, because they will owe less in interest over time," she says.

Deferred payments

The revamped reverse mortgage is an improvement, but it's still a loan against the value of a house. The borrower gets a lump sum, line of credit, stream of monthly term payments or combination of those choices, but the mortgage loan still accrues interest, and one day, the principal and interest must be paid off.
"It's very important that people understand they aren't getting rid of their mortgage. They are deferring the payments, and the payments are accumulating over time, and they are paying interest on the deferred payments," Stucki says. "It's like putting a spigot on your equity and it's draining out, and you are paying for the privilege of liquidity."
The maximum loan amount today is $625,000, but that could change if Congress decides to lower national loan limits.

Counseling required

Counseling, either in person or on the telephone, is required for all reverse mortgage borrowers. Counseling sessions are private and personalized to the borrower's situation.
The borrower must now demonstrate an understanding of the information before the counselor will issue a completion certificate, says Bell.
Some nonprofit agencies offer reverse mortgage counseling free or at a nominal fee. The going rate is about $125.
"Even if they have to pay, it's probably a good investment," Stucki says. "They could be locking up their home equity and potentially draining out that equity at an alarming rate if they get the wrong product or make a wrong decision."

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© Copyright 2010 Bankrate, Inc. All rights reserved.

Gary Keller of Keller Williams meets with short sale agents and banks to discuss 2011 changes

This is a brief overview of a meeting that was held with Gary Keller and some Keller Williams Short sale agents and bank personnel from around the country in November 2010. These are some of the highlights provided to us from one of the agents from our Keller Williams Professional Partners Surprise, AZ office that was part of the meeting. This may help you with your decision to short sale your house.

There was a lot of positive discussion from the meeting and I will tell you the banks, although slow to understand our market and see many of the bad decisions they have made to this point. Here are some key points that were discussed:

§  Many of the banks will no longer extend trustee sales over and over (we are already seeing this). Nationally this has been a bad move as the vast majority of foreclosure or trustee sale postponements have ultimately end up foreclosing anyway. Unfortunately some legitimate short sales will be lost due to this policy but ultimately the banks see this helping their overall loss and see this pushing troubled seller into starting the Short Sale process sooner.

§  Principal Reductions will not happen! Loan modifications down to 31% of the household income may happen however the terms of the loan are extended and interest will accrue thus creating even worse loan terms for most people. If you are desperate to stay in your home, this may be an avenue for you if you don’t mind the long-term drawbacks.

What does this mean to you? The biggest message here is DO NOT wait too long if you plan to Short Sale. There are many benefits in completing a Short Sale verse going to Foreclosure and the banks realize this. They also realize people are living in their home way too long without making payments and have taken advantage of the situation. Many banks and investors are pushing sellers to take immediate action if they desire to Short Sale or suffer the consequences by going to foreclosure.

 We will see the banks in 2011 being more aggressive however if you work with an experienced team, you will have options if there is enough time.

We at the Burkhardt Team would be happy to discuss these topics and more with anybody that is interested and will continue to get you current information and ideas. Please forgive us for any inaccuracies and feel free to give us topics you would like us to blog on. Special thanks to Jennifer Sanchez AZ RE agent Surprise, AZ

Burkhardt Team Thanksgiving Day Thankyou

We at the Burkhardt Team have much to be thankful for this year. We are thankful for the friendships we have made across this great country and abroad. We are thankful for our children and immediate family. We are thankful we still have all our parents. We are thankful for the trust our clients have shown us again this year as we navigate the real estate markets. We are thankful for our Keller Williams family and friends. We are thankful that we live in a country where you don’t always agree but have the right to say your piece and even sometimes agree to disagree. We are thankful we don’t have to go through another Minnesota winter again this year. So as you can see we have a lot to be thankful for and certainly know this doesn’t begin to list everything we are thankful for.  God has blessed each and every one of us and please take the time to say Thank you on Thanksgiving Day and always.

Thank You

The Burkhardt Team

Try before you buy!!!

PebbleCreek is a premeir active adult community in the great city of Goodyear, Arizona. They offer an opportunity for people to come and try out all the facilities and play golf and enjoy an evening at the restraut with current residents to allow you to tryout the lifestyle. This is a very low pressure way to try before you buy. The Burkhardt Team has used this program and can help you get signed up to try it out also. For more information please contact us and we will hook you up.

Tribute to our Veterans from Keller Williams and the Burkhardt Team

Dear KW Family –

On Veterans Day, we come together to pay tribute to the men and women who have worn the uniform of the United States Armed Forces. We are grateful for their acts of bravery; serving selflessly and rising to the occasion to protect our freedoms.  
They have truly shown the heights to which Americans can rise when asked and inspired to do so and we can all learn something from their courage. 
I hope you will take a moment today to commemorate the patriots who have risked their lives to preserve our Nation, the families who support them, and the heroes who are no longer with us – especially those who are members of our precious Keller Williams family.  
Yours in recognition and remembrance,

Gary Keller Co-founder and Chairman of the Board	Mo Anderson Vice Chairman
Mark Willis CEO	Mary Tennant President and COO

Great Listing in Fabulous Tuscanny Falls PebbleCreek

Check out this great new listing in Pebblecreek, Goodyear, AZ. Pictures and Virtual tour.

Another Listing in Fabulous PebbleCreek Resort

Hot off the press. We just took a great listing in Pebble Creek close to the clubhouse on Cheery Lynn Road. We will get pictures and more info on our website later. http://www.burkhardtteam.com/

Elections are over the People have Spoken, Now What??

The elections are over!!! The people have spoken and now we will have to see if the message finally gets heard? The spinsters are saying that our representatives will now get to work in straightening our nations challenges and if they don't we the people will change them out again. It wasn't the party it was the ineffectiveness. Well I thought we let our representatives know we wanted change and fiscal responsibility 2 years ago and they said they heard us and then continued to do what they always have. Those of you that were waiting for the election to see what was going to happen now you know. Today is still a great time to purchase and sell your home and if you believe the new elected officials things are now going to get done. So one less reason for you the people to sit on the sidelines and now you can feel good enough to get in the game. If you wait until it is clear that the party has started you may get there just in time to do the dishes.
We at the Burkhardt Team would be happy to discuss these topics and more with anybody that is interested and will continue to get you current information and ideas. Please forgive us for any inaccuracy's and feel free to give us topics you would like us to blog on.

Award Winning Burkhardt Team to hold Open House Saturday OCT.30 11AM - 2PM

We will be holding an Open House at this great property in the Golf course subdivision of Coldwater Springs in Avondale, AZ. This is a 4 bedroom 2 bathroom house in move in condition. The carpets have been replaced and the interior was professionally painted from top to bottom. This is also a great opportunity to talk with our award winning agent to get all the right answers on buying or selling a home. If you can't make the open house we are always available for a private showing on this or any other MLS home. Hope to see you there.



The Burkhardt Team

This Month in Real Estate

This is a quick and informational video on residential real estate across the nation for month of October.
http://www.youtube.com/watch?v=X5QaG60QgUU
We at the Burkhardt Team would be happy to discuss these topics and more with anybody that is interested and will continue to get you current information and ideas. Please forgive us for any inaccuracy's and feel free to give us topics you would like us to blog on.

Buying Real Estate with Reverse Mortgages

Reverse Mortgages have been around for many years and are misunderstood more than other options of borrowing money. In today's market had many people purchased their homes with a reverse mortgage the property would be upside down however there would be know concerns to the owner and the banks wouldn't be foreclosing or bothering the homeowner either. The mortgage is given to the purchaser that has approximately 50% down and the bank allows the resident to live there until they pass on to the ever after. Then the bank reconciles the balance and if there is equity that gets passed to the surviving heirs. If there is no equity the bank takes what they can get and has insurance to cover the short. This can be used to pull equity from a home if the owners need extra income in their later years. We see some retiree's using this product so they can buy a larger home than they could if they wanted to pay in full. The reverse mortgage allows you to pay roughly 50% down and not have any payments for the rest of your life. This allows people that were going to buy a $200,000 home to buy a $400,000 home and have the home they could only dream off without the reverse mortgage. If the mortgage is used with thought into the big picture it can be a very good tool in home financing. We would recommend talking with an estate planner to see if this could be a good fit for your circumstances. As we know all our circumstances are not the same.
We at the Burkhardt Team would be happy to discuss these topics and more with anybody that is interested and will continue to get you current information and ideas. Please forgive us for any inaccuracy's and feel free to give us topics you would like us to blog on.

OPEN HOUSE Saturday OCT. 23 11AM - 2PM

Come out and checkout a great property http://www.flexmls.com/link.html?rmpd95dz78r,12 in the award winning community of PebbleCreek in Goodyear, AZ. (See favorite websites on the right of this blog - Robson Active Adult Living) The Burkhardt Team will be having an open house at this beautiful property this weekend on Saturday Oct. 23 from 11AM to 2PM. We will leave directions with the gate attendant. This gives you the opportunity to look at a very nice residence and also talk directly with our fantastic buyers agent. We are always more than happy to show other properties available after the open house or we can set up an appointment for another time that is more convenient for you. We can always consult with you on the marketing of your property also.
We at the Burkhardt Team would be happy to discuss these topics and more with anybody that is interested and will continue to get you current information and ideas. Please forgive us for any inaccuracy's and feel free to give us topics you would like us to blog on.

Interest Rates at 20 Year Low!!!!!! Residential Housing lowest in Years!!!! GREAT TIME TO PURCHASE YOUR DREAM HOME!!

If you are looking to purchase or refinance real estate now is quite possibly the best time in decades. Go to this link http://www.mcimageserver.com/charts/2010_10_20/646__.pdf and you can see just how low interest rates are in relation to what has been out there in the last 20 years. Can it get better? Possibly it could get better but, it could go the other way just like all markets the interest rates can go back up. My question would be if interest rates are the lowest they have been in decades and residential housing is as cheap as it has been in close to a decade, what are you waiting for? Now get out there and talk to a mortgage broker and see what you are qualified for and contact a great realtor (yours truly for example) and find the home that you could only dream of just a few years ago. If you wait for somebody to tell you this is definitely the bottom you have already missed it and may already not be able to purchase the home of your dreams.
We at the Burkhardt Team would be happy to discuss these topics and more with anybody that is interested and will continue to get you current information and ideas. Please forgive us for any inaccuracy's and feel free to give us topics you would like us to blog on.

Seven Reasons Why to Buy NOW!!!!!!

Please click on the link http://images.kw.com/kw/user_uploads/7ReasonsWhytoBuyNow.pdf to see 7 really good reasons to buy now rather than waiting.

Short Sale FAQ's

Short Sale Question and Answers

1. What is a short sale?

a. A short sale, or short payoff, occurs when a lienholder (bank) agrees to accept less than what is owed on the property in exchange for releasing the lien and satisfying the debt.

                                                

2. Why would a bank accept less than what is owed to them?

a. The banking industry is too complicated to explain in one paragraph, but the biggest reason   for granting a short sale is that it may be better for them than letting a home go through foreclosure. The entire foreclosure process can be extremely expensive for a bank, and at the end of the day, the home will still sell for much less than the amount owed. Granting short sales allows them to bypass most of this process and net more from the sale.

3. How do I know if a short sale is right for me?

a. Speak to professionals:

i. Real Estate Attorney – within a 30 minute consultation, a good real estate attorney can determine if you should try a loan modification, short sale, bankruptcy, deed-in-lieu, or foreclosure.

ii. Tax Attorney – many offer a free consultation over the phone to determine if you’ll have any

tax liability.

iii. Your lender - If you desire to stay in the home and simply need interest rate reduced (due to an ARM adjustment), loan modification directly through your lender may be the best choice.

4. How do I know if I qualify for a short sale?

a. Link Consulting provides a homeowner’s package with various forms to fill out (including a

financial analysis). This package is submitted to your lender(s) for approval. It is very similar to

applying for a mortgage…only in reverse. There must be evidence of a hardship. This may not

necessarily be a financial hardship in the traditional sense. It could stem from medical issues,

family reasons or military reassignments.

5. Will I have any out-of-pocket expenses?

a. The bank will pay your closing costs as well as your Realtor’s commissions. We do ask, however, that you pay your HOA dues and keep the electric and water on at the property. Per the Arizona Purchase Contract, it is required that these utilities be kept on so that the buyer may perform their inspections.

b. If you have a HELOC (home equity line of credit) or Mortgage Insurance, you may be asked to pay a settlement fee or sign a Promissory Note at closing. Depending on the amount owed, this could be anything from a $3000 total payoff or $20,000 paid over 10 years at 0% interest.

It all depends on the lender and the circumstances. Some HELOCs will not discuss your options with you until after the sale has closed. HELOCs are not considered second mortgages under these circumstances, and they do reserve the right to file a deficiency judgment against you EVEN if they agree to a short sale.

c. If you have a second mortgage that was refinanced at any point, and you did a “cash-out” option, this may not be protected against a deficiency judgment.

6. How will my home be marketed?

a. The same way it would if it were not being short sold…only all marketing materials must disclose that “all terms of offers are subject to lender approval.” Many sellers prefer a more discreet approach, and we are happy to leave the sign out of the yard.

7. My Realtor put my home on the market. Now what?

a. Agents will show prospective buyers your home, and we wait for an offer to come in from one of them. We try to price within the bottom 10% of the active listings to get plenty of activity and receive an offer within the first 30 days on market.

8. What will happen after we receive an offer?

a. The offer is submitted to the bank along with supporting documentation from your broker.   The “loss mitigator” is our point of contact during the entire process. He or she will review the package in its entirety before ordering a BPO (Broker Pricing Opinion). This BPO is similar to an appraisal and will require a third-party agent to come to your house and take photos of every room…even the garage. They will then create a report for the bank that reveals the current value of the home.

9. What are the consequences of doing a short sale?

a. Your credit WILL BE impacted. Some banks will report that it was “satisfied in full” while others may say that it was “settled for less than owed.” We have no control over how the bank reports the sale. The number of late payments accounts for the majority of the lost credit points. It may be in your best interest, whenever possible, to continue making payments on your home.

b. You will receive a 1099-C at the end of the year showing that you made extra income. This extra income is the amount that the bank was shorted, or the deficiency. For example, if you owed $250,000 on your home and you short sold it for $150,000, you will receive a 1099-C at the end of the    year stating you made $100,000. The Mortgage Forgiveness Debt Relief Act will protect many sellers in a short sale situation and make them exempt from paying the taxes on the deficiency. An IRS 982 form should take care of the remaining situations. Individual circumstances do vary, and we recommend that you speak to a tax attorney to see if you will qualify for this exemption or any others.

c. Although Arizona has anti-deficiency laws in place for homes that are foreclosed on, these same laws may not apply to all short sale situations. For this reason, my processor and I request that the bank puts in writing that they will “release the lien AND SATISFY THE DEBT.” Please understand that they may not agree. HELOCs (Home Equity Lines of Credit) will not put this verbiage into their approval letters because, in most cases, they can ALWAYS come after you     if they so choose…even if your home forecloses.

10. How do I get started?

a. Request a short sale package. Some are bank specific, so be sure to provide your agent with  all of your loan information as well as an authorization form that allows them to speak to the bank on your behalf.

b. We ask that you reduce communication with your bank after the short sale process is started. We will work directly with the loss mitigation department and discussions with other departments may hinder our efforts. If we need you to speak to the bank, we’ll let you know.

c. Sit back, relax, and let the professionals handle the details for you.

Short Sales change daily!

Please contact The Burkhardt Team for the most updated information

Foreclosure Stoppage? Could it be the fix?

The banks and government just can't seem to do anything without creating a more challenging set of circumstances. First they create the housing bubble by giving credit to anybody with a pulse and I am not sure this was a requirement. Then they tighten credit so that even the best borrowers can't get credit. Then they design a modification system that will hardly benefit the borrowers. Then they get in the way of short selling of the homes. Finally they are accused of falsifying documents and forging signatures. I would have to say we have certainly proved to the rest of the world we can only be trusted to do whatever we want to at any given time as long as we don't think anybody is watching or paying attention. I know I sleep better at night knowing the place that keeps my money can't be trusted to do the smart or correct thing. Well they might have messed this up enough now that we see a silver lining in this debacle.
If the government stops the foreclosure process and forces the banks to reexamine their processes and it takes them long enough, which shouldn't be a problem. The inventory may slow from coming on the market causing the prices to go up. It may also cause the banks to get serious about allowing the short sale process to work creating less foreclosures.
This buys some of the people out here more time to talk to a real estate attorney and CPA to see if the short sale process is a better avenue then the foreclosure. It almost always is and it may be a little more work buy it does allow you the homeowner some control of how it will effect you. There are attorneys and CPA's that will do a consult for a minimal charge, some as low as $50. A professional real estate agent can help you find a qualified real estate attorney and CPA and also help you through the process. The real estate professional should be paid by the banks when the process is complete so there should not be a charge to the homeowner for selling the house. Some agents will ask for a retainer upfront for their services and I guess I would continue to look for another realtor because there are many excellent short sale professional Realtors out there that will not charge a retainer or if they do it is refundable unless the homeowner quits the process before the process is able to be completed, otherwise this would be refunded at closing.
The sceptics say all this is going to do is slow the recovery but I think we might not be as smart as we think we are and this could be just what we need. Less intervention and some time for the market to cure it self.
We at the Burkhardt Team would be happy to discuss these topics and more with anybody that is interested and will continue to get you current information and ideas. Please forgive us for any inaccuracy's and feel free to give us topics you would like us to blog on.

Honey, It has a resort back yard!!!

Traditional Sale:
4 Bedroom/2 Bath family home with family room, formal dining and living room. 4th bedroom could be used for den with double doors and tile floor. This is a must see!!!!

Real Estate Today.

Many people out here have no idea what is happening in the residential real estate market today. For the first time in many of our lives we found out that the housing market is just that a market. Houses can go down in value too. Even our government and banks seemed to forget that there is a reason it is called the housing market. The prudent thing is to purchase a home in the neighborhood that you want to live or raise your family in and to plan on being in that home for at least 5 yrs or like any other investment you should probably not be in the market. We now have went from people buying any house they could find to I would prefer to rent. Nobody can call the bottom with complete accuracy but we have fallen more than 50% in most Phoenix markets so we have to be closer to the bottom than the top. We also have record low interest rates at the exact time that the market is down. This is probably the best time in your lives to be buying that home you would have died for just a few short years ago and in some cases you can live there for less than you pay for rent.
 For those that have secure jobs and extra savings this is also a good time to be looking at investing in income property. There are a lot of single family homes that will have positive cash flow even after paying a management company to handle the day to day things. We see investors coming in and buying distressed sale houses and renting them out and having returns above 15% without the tax savings and the potential for capital gains. While the banks are paying less than 1% on money market and Wall Street going who knows where this seems to be a pretty good risk. Notice there is RISK in all investments including the current housing markets.
We at the Burkhardt Team would be happy to discuss these topics and more with anybody that is interested and will continue to get you current information and ideas. Please forgive us for any inaccuracy's and feel free to give us topics you would like us to blog on.