Home Equity Conversion Mortgage Program - HUD

I helped my parents get a Reverse Mortgage - they now live a worry free lifestyle. It was quite easy to get this set up for them. We called a local mortgage company that specializes in Reverse Mortgages. The attended counseling prior to signing up, and within three (3) weeks, they were worry free. In fact, they received over $20,000 for their nest egg. To sweeten the pot, they pulled equity out of their home two more times totaling $50,000. They live in a lovely Condo in a gated community with 2 Bedrooms, 2 Bath, single level, large living room, family room, and a one car garage. The community has tennis courts, 3 golf courses, state of the art fitness center, and much more. Here is how the Reverse Works:

The Home Equity Conversion Mortgage (HECM) program enables older homeowners to withdraw some of the equity in their home in the form of monthly payments for life or a fixed term, or in a lump sum, or through a line of credit.
In addition, the HECM mortgage can be used to purchase a primary home when the borrower is 62 years of age or older and is able to use cash in hand to pay the difference between the reverse mortgage and the sales price plus closing costs for the property.

Purpose: To be eligible for a HECM mortgage, current homeowners must be 62 years of age or older, own their home outright or have a low mortgage balance that can be paid off at closing with proceeds from the reverse mortgage. The home must be their principal residence. In addition, the HECM can be used to purchase a primary home if the borrower is able to use cash in hand to pay the difference between the HECM and the sales price and closing costs for the property.

The program requires that borrowers either receive free or low cost reverse mortgage housing counseling from a HUD approved reverse mortgage counseling agency before applying for a reverse mortgage. FHA insures HECM loans to protect lenders against loss if amounts withdrawn exceed equity when the property is sold.
Type of Assistance: HECM can be used by homeowners who are 62 years of age and older. The total income that an owner can receive through HECM is the maximum claim amount, which is calculated with a formula including the age of the owner(s), the interest rate, and the value of the home.

Borrowers may choose one of five payment options: (1) tenure, which gives the borrower a monthly payment from the lender for as long as the borrower lives and continues to occupy the home as a principal residence; (2) term, which gives the borrower monthly payments for a fixed period selected by the borrower; (3) line of credit, which allows the borrower to make withdrawals up to a maximum amount, at times and in amounts of the borrower's choosing; (4) modified tenure, which combines the tenure option with a line of credit; and (5) modified term, which combines the term option with a line of credit.

The borrower remains the owner of the home and may sell it and move at any time, keeping the sales proceeds that exceed the mortgage balance. A borrower cannot be forced to sell the home to pay off the mortgage, even if the mortgage balance grows to exceed the value of the property. A HECM loan need not be repaid until the borrower moves, sells, or dies. When the loan must be paid, if it exceeds the value of the property, the borrower (or the heirs) will owe no more than the value of the property, if they sell the property to repay the loan.

Two mortgage insurance premiums are collected to pay for HECM: an upfront premium (2 percent of the home's value), and a monthly premium (which equals 0.5 percent per year of the mortgage balance).
A lender can charge an origination fee up to $2,500 if the home's appraised value is less than $125,000. If the home is valued at more than $125,000, lenders can charge 2% of the first $200,000 of the home's value plus 1% of the amount over $200,000. HECM origination fees are capped at $6,000.
All HECM borrowers are required to complete reverse mortgage counseling through a HUD approved housing counseling agency.

Eligible Customers: To be eligible for HECM, a homeowner must (1) be 62 years of age or older, (2) have a low outstanding mortgage balance or own their home free and clear, and (3) have received HUD approved reverse mortgage counseling to learn about the program.
An eligible property must be a principal residence, but it can be a single family residence, a one to four -unit building with one unit occupied by the borrower, a manufactured home, a unit in an FHA approved condominium, or a unit in a planned unit development. The property must meet FHA standards, but the owner can pay for repairs using the reverse mortgage.

Application: Borrowers who meet the eligibility criteria above can apply through an FHA HECM approved lending institution. Borrowers can locate FHA approved lenders through HUD's searchable listing.
Technical Guidance: This program is authorized by the Housing and Community Development Act of 1987, Section 417, Public Law 100-242 (12 U.S.C. 1715z-20). Program regulations are in 24 CFR 200 and 206.
For More Information: Homeowners who want to learn more about this program should call HUD's toll-free housing counseling information line, (800) 569-4287 or see the searchable list of HUD approved reverse mortgage housing counseling agencies.
Additional information is available from AARP's Home Equity Conversion Information Center (202) 434-6044.

If you are looking for a Condo in a retirement community, I have another 3 BR, 2BA, 1400+ sf, in the same community for just $125,000. Call Cynthia Smitherman, CDPE, ABR, GRI, DB at 602 697-4487.

Emage` Fine Properties, LLC
http://www.homes4saleaz.com/

HOMES FOR POLICE OFFICERS, FIRE FIGHTERS AND MEDICAL PERSONNEL

The Neighbor Next Door initiatives are a collection of FHA's home sales programs designed to help communities and promote homeownership.
If you are a law enforcement officers, firefighter, emergency medical technicians or teachers you have an opportunity to purchase homes in these communities where homes are set aside for you in helping to revitalize a community. HUD provides a substantial incentive in the form of a fifty percent discount off the list price of eligible properties.

Law enforcement officers, pre-Kindergarten through 12th grade teachers and firefighters/emergency medical technicians can contribute to community revitalization while becoming homeowners through HUD's Good Neighbor Next Door Sales Program. HUD offers a substantial incentive in the form of a discount of 50% from the list price of the home. In return you must commit to live in the property for 36 months as your sole residence.

How the Program Works

Eligible Single Family homes located in revitalization areas are listed exclusively for sales through the Good Neighbor Next Door Sales program.

You must meet the requirements for a law enforcement officer, teacher, firefighter or emergency medical technician and comply with HUD's regulations for the program.HUD requires that you sign a second mortgage and note for the discount amount. No interest or payments are required on this "silent second" provided that you fulfill the three-year occupancy requirement.

For more information contact:

Cynthia Smitherman, CDPE, ABR, GRI, DB,VP AAREB

Emage` Fine Properties, LLC

602 697-4487

http://www.homes4saleaz.com/

WHAT WE HAVE DONE FOR OURSELVES ALONE DIES WITH US - WHAT WE DO FOR OTHERS IS IMMORTAL

What We Have Done For Ourselves Alone Dies With Us- What We Do For Others is Immortal

As service industry specialist in the area of Real Estate, we orchestrate wonderful things for perfect strangers. Contrary to all the negative comments from disgruntled people regarding Real Estate Agents, our hearts are in the right place. I have been through weddings, divorces, births, and death with my clients. I have seen them happy, sad, broke, prosperous, employed and unemployed. I have seen them healthy, and I have seen them ill.

My clients become more than business acquaintances, many have become very dear to me. One couple who I secretly refer to as "My Kids", experienced my fussing over them like a mother hen when helping them purchase their first two homes. I watched their children grow from toddlers, to pre-high school-er, and soon to be high schoolers.

I have another family who I am also very fond of, and genuinely am happy to hear from when they call just to say hello. It warms my heart when they ask of my family by name, one by one. It let's me know they care enough to remeber that my father has cancer, or that my son is a Chef, they care enough to ask of my husband, and lastly to ask how I am doing. To them, I am more than the lady that helped them purchase a home. I am their friend.

I have helped many people with different nationalities, different educational backgrounds, different religions, and different political views than me. However, there is always a common bond that transcends any culture, or politcal differences; that bond is genuine respect, and admiration.

So I can honestly say, that I am Proud to be a REALTOR, the rewards are greater than any commission, my greatest reward is that I can honestly say, my clients are truly friends and have become a part of my extended family.

Cynthia Smitherman, CDPE, ABR, GRI, DB, VP. AAREB

REALTOR, REALTIST. 602 697-4487 http://www.homes4saleaz.com/

HUD Dollar Home Programs Offers Discount Programs to Buyers

When I was in my mid twenties, I remember my friends being able to purchase homes in the neighborhood for just $1.00. I really did not understand how this concept worked, or even why, but it did. Every so often we would see individuals fixing up an vacant home, and within weeks, a new family was there. Everyone knew it was purchased for just $1.00.

As a Real Estate professional, I realize how much of a benefit the dollar program can be to low to moderate income people. With a little elbow grease, they too can capture the American Dream of home ownership. I feel today, with the condition of our housing market and the over flow of vacant homes, this leaves an opportunity for many people who could not otherwise purchase a home.

In Arizona, the program works a little different; here is how it works according to HUD:


HUD's Dollar Homes initiative helps local governments to foster housing opportunities for low to moderate income families and address specific community needs by offering them the opportunity to purchase qualified HUD-owned homes for $1 each. Dollar Homes are single-family homes that are acquired by the Federal Housing Administration (which is part of HUD) as a result of foreclosure actions. Single-family properties are made available through the program whenever FHA is unable to sell the homes for six months.

By selling vacant homes for $1 after six months on the market, HUD makes it possible for communities to fix up the homes and put them to good use at a considerable savings. The newly occupied homes can then act as catalysts for neighborhood revitalization, attracting new residents and businesses to an area.
Local governments can partner with local nonprofit home ownership organizations or tap into existing local programs to resell the homes to low- and moderate-income residents of the community.

To find out how HUD Home Programs Offers Discounts Programs to Buyers, contact your local HUD real estate broker.

Emage` Fine Properties, LLC is a HUD real estate broker call today to get your free list of HUD homes.

602 697-4487

http://www.homes4saleaz.com/

FORECLOSURE HELP AVAILABLE FROM AREA EXPERT

FOR RELEASE: IMMEDIATE
DATE: September 17, 2009

For more information, please contact: 602 697-4487

CYNTHIA SMITHERMAN EARNS PRESTIGIOUS DESIGNATION TO

HELP HOMEOWNERS IN DANGER OF FORECLOSURE

CYNTHIA SMITHERMAN of EMAGE` FINE PROPERTIES, LLC of CHANDLER, ARIZONA has earned the prestigious Certified Distressed Property Expert (CDPE) designation, after completing extensive training in foreclosure avoidance and short sales. This is invaluable expertise to offer at a time when the area is ravaged by “distressed” homes in the foreclosure process.

Short sales allow the cash-strapped seller to repay the mortgage at the price that the home sells for, even though it is lower than what is owed on the property. With plummeting property values, this can save many people from foreclosure and even bankruptcy. More and more lenders are willing to consider short sales because they are much less costly than foreclosures.

In the Phoenix metro area there are thousands of homes in danger of foreclosing. It is happening in all price ranges. Local experts say that even high-priced homes are not immune.

“This CDPE designation has been invaluable as I work with sellers and lenders on complicated short sales,” said SMITHERMAN. “It is so rewarding to be able to help sellers save their homes from foreclosure.”

Alex Charfen, founder of the Distressed Property Institute in Boca Raton, Fla., said that Realtors® such as CYNTHIA SMITHERMAN with the CDPE designation have valuable training in short sales that can offer the homeowner much better alternatives to foreclosure, which virtually destroys the credit rating. These experts also may better understand market conditions and can help sellers through the emotional experience, he said.

The Distressed Property Institute opened in January 2008 and provides training on-site and online. The CDPE is the premier designation for Realtors helping homeowners in distress and handling short sales.

“Our goal is to educate as many people as possible so we can help as many homeowners as possible. If you are facing foreclosure call today, these services are offer at no cost to the homeowner.

Contact foreclosure expert

Cynthia Smitherman, DB, CDPE, ABR, GRI, Vice President, AAREB, REALTIST

Emage` Fine Properties, LLC

602 697-4487

http://www.homes4saleaz.com/

LEISURE WORLD - 55+ COMMUNITY

A few years ago, I talked my parents into moving from the cold snow belt in Indiana to the sunny skies of Arizona. My father who incidentally did not want to move because he enjoyed "THE CHANGE OF SEASONS" made the move reluctantly until he got here and then decided that it was the best move he ever made.



Personally, I really could not find the joy in three layers of sweaters, a fir lined coat, two layers of pants, three layers of socks, inside my fir lined boots and a pair of gloves inside my mittens, all of this just to go to the grocery store to get a gallon of milk.



Now if you live in the Phoenix metro area, you don't know what I am talking about; but if you live in Michigan, Wisconsin, Illinois, Indiana, Ohio, Kansas, Missouri the Dakotas, and Canada - you can relate.
In Phoenix, we have residents who live in Leisure World only during certain months, we call them snowbirds; they fly to Leisure World during the winter months, and fly to the other home during the summer months.




Where are you flying to Frank?






To Relax at Leisure World for the Winter months!




I personally can not think of a better way to enjoy all the seasons than we do in the diverse state called Arizona. In the high country, Flagstaff, Pinetop, even Sedona, you can enjoy the fall leaves turning against the blue skies, dotted with puffy white clouds with with a hint of color from the reflection of the sun, as well as breathtaking mountain views with snow capped mountains in the very near distance. Additionally at the same time, you can enjoy flowers blooming in Phoenix in the winter months.



Leisure World has many amenities: Tennis courts, basketball courts, billiards, swimming pools, lawn bowling leagues, travel clubs, computer training on site, wood workshop for those who like to make furniture, card rooms with bridge tournaments, travel club, photography club, in house movie theater, state of the art exercise rooms, dance, and yoga, classes and more.









"4" Ball in the Corner Pocket Jacuzzi





Learn the latest dances in Leisure World Dance Studio



Leisure World is a 24 hr guarded, gated, age restrictive community.
Listed is a 3 Bedrooms, 2 Baths, 2 Car Garage, 1464 sq ft., all on one level, neutral carpet, lots of windows, appliances stay and maintainance free for $125,000. Seller is motivated - call today! This property is located in Mesa, Arizona just a few steps from the Superstition Mall, restaurants, and only a quarter of a mile from the freeway. To see this listing, please visit my website: http://www.homes4saleaz.com/


Cynthia Smitherman, ABR, GRI, DB
, VP, AAREB,



Emage` Fine Properties, LLC
http://www.homes4saleaz.com/ 602 697-4487
email me for more listings of Valley wide retirement communities at cynthia@emagehomes.com for a complete list of 55+ Communities.

FIRST STEPS IN PURCHASING A HOME IN ARIZONA

FIRST STEPS TO PURCHASING A HOME IN ARIZONA (edit/delete)
Perhaps you have been thinking of taking the first steps to purchasing a home in Arizona, after all you have been renting apartments for several years. Most people are perplexed as to how to get started and of course the unknown is always daunting. Here is a step by step guide to becoming a successful home buyer:

1. Get counseling from a housing agency: They will teach you how to read your credit report and the importance of your credit score. You will also learn how to avoid predatory lenders, loan delinquency and foreclosure. You will be able to meet one on one with a counselor who will guide you through your first steps in purchasing a home in Arizona from the beginning to the end so when you do meet with your real estate professional and the Lender of your choice, you will be well prepared.

2. Get pre-qualified with a mortgage specialist: It is important to know what your budget will allow in terms of buying power. Your housing counselor will set the foundation for your budget, but your lender will be able to put pen to paper and show you how much you will be paying per month based upon your incoming and outgoing expenses as well as other factors relating to the type of loan you will be receiving. Your Lender will also advise you as to how much money you will need as down payment and closing cost.

3. Choose a city where you would like to live: If you live in a metropolitan city like Phoenix, Arizona, you will have 21 cities to choose from. Your selections may be based upon the proximity to your job, social setting, or school for the children. When selecting the city, you would want to ask your Lender if there are any special city based programs or grants available to help you defray some, or all of your closing cost.

4. Select your REALTOR: There is a difference between working with a REALTOR opposed to working with a real estate agent. REALTORS belong to a national organization that requires a certain standard, and code of ethics to abide by. You will find that nearly all REALTORS have additional training over and above of what is required by the Arizona Department of Real Estate. The additional education is indicated by designations (letters that follows the REALTOR's name in print) such as ABR, GRI, DB, CRS, etc. You will find comfort in knowing your REALTOR is up to date on the rules and regulations that protect your interest. Each REALTOR, as a condition to keeping their license in good standing are encouraged to take education classes each month, however they required to attend a certain amount of classroom hours to renew their license prior to its expiration.

You would want to look for a real estate professional who has experience working with buyers, and will listen to what you want, and not what they want you to have. Purchasing a house is a huge investment, therefore you want to get exactly what you desire, if at all possible. Your real estate professional is trained to guide you through the In's and outs of real estate, she will work closely with your mortgage lender and help you stay within the parameters set by you and the mortgage lender.

5. View homes: With the Internet being readily accessible, you can look for houses in the comfort house before you and your REALTOR actually visiting a house in person. Do not visit homes, or home builders without your REALTOR; and definitely do not sign any documents without your REALTOR being present. Your REALTOR has been trained and approved by the National Association of REALTORS (NAR) and the Arizona Department of Real Estate to practice real estate law as it applies in Arizona. Therefore your REALTOR knows how to point out various items that may be material to your decision making process.

6. Select a home, and submit a contract to purchase. In Arizona the contract is nine (9) pages in length, and contains items that are designed to protect your interest, and to treat the Seller fairly. Of course your Agent would be considered a Buyer's Agent, and will negotiate with the Seller's Agent on your behalf to get you the best deal possible.

7. Upon acceptance of your contract, good faith money, better known as earnest deposit is submitted along with the contract to the title company. The title company will start the process of searching whether or not the home can be transferred from the Seller to the Buyer with a marketable title.

8. Order a home inspection: Your REALTOR will strongly suggest that you hire a good home inspector who will inspect every inch of the home you have selected, and will tell you of the pros an cons of the home. Based upon that inspection, you will decide whether or not you will continue with the purchase, or allow the Seller to correct major issues. Additionally your REALTOR will advise you as to the time lines you are to respond to the Seller for those repairs.

9. Lender Approves the Loan - Your close of escrow is near, the title company has given you a satisfactory report, the Lender has approved the loan and you are scheduled to sign your documents; your pledge to pay, etc.

10. The Loan Funds, you are handed the keys and you have had an easy, wonderful experience.

Now I know you have probably heard war stories about how hard or horrible the home buying process may be. There are many factors that can cause the steps outlined above to deviate. Credit issues uncovered at the last minute, or the Seller not agreeing to repairing the home which may cause you to re-negotiate the offered price on the home. However a seasoned REALTOR is prepared to help you through any hurdles you may encounter.

In a normal real estate market (which is not today's market) it would take approximately 45 days to complete the process of purchasing a home. However in today's market, with so many short sales, and foreclosures, it may take any where from 60-120 days to close on a home purchase.

For more information on the First Steps to Purchasing a Home in Arizona or how to contact a housing ccounselor Call 602 697-4487
Cynthia Smitherman, ABR, GRI, DB, VP, AAREB

Emage` Fine Properties, LLC
http://www.homes4saleaz.com/
cynthia@emagehomes.com
WE CARE ABOUT YOU, AND ARE NOT AFRAID TO SHOW IT!