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Michael: Welcome back to the Velocity of Money you are listening to KPNX 1100 AM, Arizona's
news talk leader, and once again back on the air. Wayne thank again for being there for us every
week doing a great job of helping us control and keep things cool and smoke free in here we very
much appreciate that. One of the things I mentioned at the beginning of the last segment is this special
allotment of funds that we received from one of our mortgage banks that we currently have available, a
30 year fixed, no pre payment penalty this is the real deal just what you are looking for a 4.875%
interest rate with an APR of 4.95% and that is available we do have people at the office right now
if you have questions in regard to that they can answer them for you. You would call 480-835-
Jeri: I have some clients who are buyers that would love that rate. Is that available to buyers as well?
Michael: Actually, yes it is that rate is for a no cash out refinance, no higher than 80% LTV, they have
to have perfect credit to hit this number but even in some cases well with this particular loan there are
some closing costs but one of the things we have available too is a no cost option and that interest
rate is for people who are doing the purchase or refinancing and that rate is only 5.5%. The interest
rate is 5.5% and the APR is 5.5% so that is for purchase money as well.
Michael: We are back talking here with Jeri League and Kalyn Roberts we are talking about the
objections to doing short sales, there is another one you wanted to point out Jeri?
Jeri: Yes, one more objection that people often have when we talk to them about their particular situation
is that people feel that they have to be behind on their mortgage payment on order for a bank to
consider a short sale and that is not true the bank analyses everyone's entire situation we have people
write a hardship letter, they want to see your financials and there is an entire situation not just
being behind on your mortgage payment. Your hardship may be that you are being relocated by
your and you simply can not sell your home for what you owe on it due to today's market
conditions. The banks will definitely look at that
Michael: People think that the key is that you have to be late but that is not the case.
Jeri: Nope, not at all
Michael: That is really good to know, so we talked about the objections or the pitfalls rather what about
the advantages to doing a short sale?
Jeri: The biggest advantages to doing a short sale are: is that it is less impactful on your credit
typically than a foreclosure and one of the most exciting benefits is that we can often extend the
foreclosure and keep you in your house longer. In Arizona banks have a right to start a foreclosure as
soon as you are over 30 days late on one mortgage payment. In today's current economic situation
most banks are not starting that process for three to six months, but again that is most banks. They can
start after one month.
Jeri: yes, but once they start the foreclosure process it is a 90 day process in Arizona. So you will get a
notice that says basically you have 90 days to come current with the note or to move and they are taking
your house and selling it in 90 days. Now once we start the short sale process many times we can
extend that foreclosure date. I have personally done one that we had the home owner in for almost a
year from when they stopped making their mortgage payments. It is not uncommon to be two
or three months past the original foreclosure date that they gave you which of course give people a lot
longer time to decide what they are going to do especially if it is a family they are not in such a rush
to move they can keep their kids in the same school district there are so many reasons that that is a good
advantage.
Michael; So Kalyn the truth is that homes that are occupied generally are better off and easier to sell
than vacant homes right?
Kalyn: Absolutely
Michael: So long as people are in the house and taking care of the house, if the house looks lived in
but not trashed. What you are saying is lenders would just as soon leave them in the house then to
have it vacant and potentially vandalized.
Jeri: Definitely, the lenders prefer to have somebody living in there because they are taking
care of the home, like you just said when the homes are vacant there is a high risk of them being
vandalized unfortunately and the worse the economic situation in the country gets the higher the
vandalism rate on homes goes. In fact we were talking with a realtor in our office who typically
takes listings in some of the lower income areas in town and they are going to stop putting signs on
vacant listing because they are getting vandalized so much.
Jeri: yes it is really sad and disheartening but the lenders absolutely want to keep you in your home.
Kalyn: You know what it is also is there is a complete different pride of ownership if someone
has vacated their home and if it is about to foreclose than they do not have they pride of ownership
anymore. But if they are still living in their home and they are trying to work with the bank to sell
their home they are being proactive in this financial situation they have gotten themselves into there is a
pride of ownership, they are keeping the home up but they want someone to come in and release them
from their debt.