NCO is Heading to Phoenix

Well, its off the Phoenix, Arizona tomorrow for some newspaper interviews and a talk radio show discussing the current state of the condo and housing makrets, as well as tips/advice for current potential homebuyers.  Everyone is waiting to see what the Fed does today in terms of interest rates, as well as anxious to see how President Bush's mortgage plan rolls out. 

The basis of the plan is to place a five year freeze on mortgage rates for borrowers facing the threat of default on sub-prime mortgages.  Many of these sub-prime mortgages are ARM's, or Adjustable Rate Mortagages.  These loan products are set at a lower fixed rate for 3, 5, or 7 years and then adjust upward based on the Fed's discount rate.  This freeze will essentially place a hold on these rates getting ready to adjust so the buyers won't face loan payments they can't afford.  The banks really do not want to see a massive waive of foreclosures because, let's be honest...banks are not real estate companies.  They do not want to hold assets such as condos and homes for long periods of time.  It is costly!

One of the other items we will be discussing tomorrow is tips for home buyers and people looking for Phoenix condos...what is the best want to find and buy a home in a down market?  Let's face it...there are and will continue to be amazing deals for home buyers due to the unfortunate state of the market.  Values are coming down, but they will adjust and things will normalize as they always do.  But for now, strike while the iron is hot.  My wife and I just bought a $1MM home for $740K!  The previous owner bought it six months ago for $900K.  That is a pretty fast drop.  The home is relatively new too, built in 2000 with new appliance, perfect finishes, and paint.  There are great deasl out there! 

Keep looking for great new Phoenix condos.