I am currently collecting data on neighborhood comps, interest rates and costs the mortgage company incurs to

Asked by Scott, 85043 Mon Aug 4, 2008

repossess a single family home. The lender has been VERY friendly and gave the impression they do NOT want to own another home in Phoenix and will work with me to solve my dilemma. I plan to present the data I gather to CitiMortgage as proof it would be in their best interest to agree to my loan modification request.

Home prices in my desirable subdivision have decreased up to 50% and are still on the decline. The 5 recent sale comps I’ve collected show an approximate 30% decline in sale prices, meaning I'm now at least $70k underwater. 20% of the homes are now vacant, and 15 are listed for sale. All but 3 are REOs with below market asking prices. (20% does not include homes not yet on the market)

1. Are 30-year fixed mortgage rates in Phoenix trending up or down?
2. What is the approximate cost to the lender to repossess a home? I need an approx. figure and verifiable source.
3. Are there any other facts I should include in my hardship letter and loan modification requests?

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Holly Grigai…, Agent, Cottonwood, AZ
Tue Aug 5, 2008
Rates have been trending upward for the past several months, but the mortgage markets are very volatile and rates have been changing several times a day in preceeding months-
I would think the costs would vary greatly on each property, depending on the condition and what is involved to remove the homeowner/tenant in the property....I would call a foreclosure company or a legal firm that handles them for a guestimate....Likely, though, Citicorp is already aware of what the costs will be to foreclose. You may wish to investigate the new housing legislation and see if there is any benefit to you with these new provisions- you may refinance via FHA so long as your lender agrees to write down your note by 15%.
Above all, remember, markets are cyclical- the sun will shine again in PHX, and the market will come back....we just dont know when!
1 vote
Gary Miljour, , Chandler, AZ
Tue Aug 5, 2008

Since I am a Mortgage Lender, I will help you answer your first question. Rates have been trending up since early this year. Rates daily change throughout the day based on the stock and bond market which have a direct impact on 30 year fixed mortgage rates.
Web Reference:  http://www.garymiljour.com
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