Friday, March 13, 2009
US 60 (Superstition Freeway) Widening Project Update
US60 (Superstition Freeway) Widening Project Update: Friday, March 13 - Friday, March 20, 2009
Westbound US 60 Double Right Lane Closure
The westbound US 60 two right hand lanes will be restricted overnight Sundays through Fridays from 9 p.m. to 5 a.m. Additionally, the westbound McClintock Drive on-ramp and westbound Rural Road off-ramp will be closed during this time. These restrictions will not be in effect during the day and on weekends.
Westbound US 60 Mill Avenue On-Ramp Closure
The westbound Mill Avenue on-ramp was closed beginning on March 6 for approximately 30 days. Please use posted detour routes. The full closure of the westbound Mill Avenue on-ramp is the second in a series of ramp closures which will provide faster and safer construction. Throughout the project, similar restrictions will impact freeway access at Mill Avenue, Rural Road and McClintock Drive.
Please travel safely in the construction zone and follow detour routes and posted speed limits.
ADOT is committed to providing construction information to stakeholders and welcomes your comments and feedback. For further information and to request weekly project updates, call the 24-hour project hotline at 602-787-3927 or send an e-mail to ADOT@hdrinc.com. Additional information is also available via the project website through http://www.valleyfreeways.com/. February 26, 2009.
Westbound US 60 Double Right Lane Closure
The westbound US 60 two right hand lanes will be restricted overnight Sundays through Fridays from 9 p.m. to 5 a.m. Additionally, the westbound McClintock Drive on-ramp and westbound Rural Road off-ramp will be closed during this time. These restrictions will not be in effect during the day and on weekends.
Westbound US 60 Mill Avenue On-Ramp Closure
The westbound Mill Avenue on-ramp was closed beginning on March 6 for approximately 30 days. Please use posted detour routes. The full closure of the westbound Mill Avenue on-ramp is the second in a series of ramp closures which will provide faster and safer construction. Throughout the project, similar restrictions will impact freeway access at Mill Avenue, Rural Road and McClintock Drive.
Please travel safely in the construction zone and follow detour routes and posted speed limits.
PROJECT RESTRICTIONS MAP
Westbound Double Right Lane Closed between McClintock Drive and Priest Drive
Westbound Overnight Restrictions Sunday – Thursday
Westbound Mill Avenue On-Ramp Closed
ADOT is committed to providing construction information to stakeholders and welcomes your comments and feedback. For further information and to request weekly project updates, call the 24-hour project hotline at 602-787-3927 or send an e-mail to ADOT@hdrinc.com. Additional information is also available via the project website through http://www.valleyfreeways.com/. February 26, 2009.
PROJECT AREA MAP
Wednesday, March 11, 2009
Home Inspector Finds Dangerously Placed Gas Shut-Off Valves
Inspector John O'Coin inspected a mere 4-year-old, 4500 square-foot home in Chandler AZ today with the gas safety shut-off valves in the attic. The shut-off valves were 4 feet behind the gas furnace in a place which was completely INACCESSIBLE and covered with insulation. Basically in an emergency, the gas would not be able to be turned off.
1) The city inspector certified the home when it was built.
2) The gas company was supposed to check all safety features when turning the gas on at the home.
3) The licensed installer should have known where to install the safety shut-off.
Bottom Line: In this case, the home inspector was the ONLY one who found these issues in this home.
1) The city inspector certified the home when it was built.
2) The gas company was supposed to check all safety features when turning the gas on at the home.
3) The licensed installer should have known where to install the safety shut-off.
Bottom Line: In this case, the home inspector was the ONLY one who found these issues in this home.
Monday, March 09, 2009
Home Inspector Rescues Puppy
Our very own Gene McCubbin was inspecting next door when he heard a puppy whining. Neighbors then asked him to rescue the puppy. HouseMaster Inspector Gene "McLovin" to the rescue!
Sunday, March 08, 2009
AZ is one of the REDEFAULT centers of the United States
Housing Aid Often Too Little, Too Late. For many, modified loans only delay the inevitable. by J. Craig Anderson // Mar. 8, 2009 12:00AM // The Arizona Republic
The Obama administration's $75 billion mortgage-relief effort is projected to help as many as 9 million overextended borrowers, including thousands in Arizona.
If recent history is a guide, though, financial relief for some could be short-lived.
More than half of the past-due loans modified in the first half of 2008 were back in default six months later, according to a recent report by federal bank-oversight officials.
While many have lauded President Barack Obama's plan as a worthwhile effort to help struggling homeowners, local and national experts said there are clear signs that loan modifications that reduce payments, interest and even principal won't significantly curb foreclosures.
In the Phoenix area, modifications are even less likely to prevent foreclosures than they are nationwide, experts said. Borrowers who owe far more than the current value of their homes may quit paying their loans regardless of how affordable the payment is.
"We are one of the redefault centers of the United States," said Anthony Sanders, professor of finance and real estate at Arizona State University's W.P. Carey College of Business.
The mortgage-relief plan aims to encourage more lenders to offer more borrowers more-affordable payback terms.
But Sanders said the high rate of recidivism among mortgage borrowers who have previously defaulted suggests that a program involving mass modifications could have the unintended effect of prolonging the foreclosure crisis.
"It's just postponing the inevitable," he said.
Mixed results
When federal regulators began tracking loan modifications in early 2008, they wanted to know what happens after struggling borrowers receive help.
What the regulators found was that more than one-third of the 72,877 delinquent modified loans tracked in the first quarter of 2008 were back in default within three months and more than half were in redefault after six months.
The 114,439 loan modifications granted in the second quarter fared even worse after three months, with more than 40 percent back in default.
The banks negotiated 133,106 modifications in the third quarter, but their success rate is not yet known.
A follow-up to the report, which covered first mortgages serviced by the nation's nine largest banks and five largest savings and loans, is expected later this month. It will show whether the redefault rate leveled off after six months or continued to climb.
The report showed that more lenders are embracing modifications to prevent foreclosures, but there also is evidence borrowers have not been treated equally.
The redefault rate was significantly lower in 2008 for modified loans funded by the banks negotiating the deals, compared with loans sold off to investors as mortgage-backed securities.
Bank-held loans modified in the first quarter had about a 51 percent redefault rate after six months, while securitized loans had a redefault rate of about 61 percent.
Bank-owned loans also performed better after modification than those backed by government-sponsored lending giants Fannie Mae and Freddie Mac, the report shows.Fannie Mae and Freddie Mac loans redefaulted at a rate of about 57 percent six months after being modified.
Comptroller of the Currency John C. Dugan told a congressional committee in December that loan servicers appear to be doing more for troubled borrowers when a foreclosure would directly affect their employer's bottom line. Securitized loans also are less likely to receive significant modifications because loan servicers must abide by contractual obligations made to the investors, said Michael Brauneis, director of Protiviti, a consultant to the lending industry.
Even if loan modifications ultimately would save those investors from further losses, it's often difficult to garner consent from the many individuals and funds invested in the loans to modify the terms, Brauneis said.
"Many of them have threatened to sue, and some of them have already sued," he said.
New hope
Obama's mortgage-relief plan combines lender incentives and borrower assistance. In addition to loan modifications, refinancing is available to some homeowners.
In Arizona, where home values have plummeted beyond the threshold for most to qualify for refinancing, a loan modification is expected to be the most popular.
It is designed to help owner-occupants whose payments have become unmanageable despite their best efforts. The goal is to reduce borrowers' monthly mortgage to no more than 31 percent of gross household income.
To accomplish that, the lender must first agree to reduce the monthly payment to 38 percent of the borrower's gross income if it isn't already. The government then will provide matching funds to the lender to further reduce the payment to 31 percent.
The first step will be to reduce the loan's interest rate to as low as 2 percent for five years, after which the bank could increase the rate by 1 percent each year until it is back in line with the going rate. If that isn't enough to bring the payment to 31 percent, the lender then will extend the term of the loan to 40 years and can take additional steps, such as setting aside part of the principal. Lenders will receive various payments to encourage them to modify at-risk loans and "success" payments if their borrowers keep making payments.
Lenders will also receive up to $1,000 a year for five years to apply toward the loan balances of homeowners who have stayed current on their modified loans.
Patricia Garcia-Duarte, executive director of Neighborhood Housing Services of Phoenix, said counselors at her non-profit housing-assistance service should be able to help more borrowers obtain sustainable loan modifications.A key part of the modification program, lenders say, is the standardized approach. Before, different lenders used different terms with different borrowers. The uniform approach is expected to allow more people to rework their loans at more favorable rates, though lenders that did not accept federal stimulus money are not required to follow the new rules.
"Before this, everyone was all over the board," Garcia-Duarte said.
Even before the Obama administration unveiled its plan, lenders were changing the terms of loan modifications as they learned how many recipients of the earlier modifications were not keeping up on their payments.
Brauneis said lenders have become more willing to further reduce interest rates and monthly payments since bank regulators began tracking redefault rates in January 2008.
Unfortunately, the economy has continued to shrink during that time, while unemployment claims have nearly doubled.
"Redefaults are not just the loan servicers' fault," he said.
In the fourth quarter of 2008, lenders began transitioning to a more standardized approach to loan modification, and Brauneis said they even started seeking out at-risk borrowers who had not yet requested assistance.
"That's the direction the industry is going," he said.
It's too early to know whether the standards lenders adopted were effective at creating sustainable payment plans.
Not enough?
Despite the federal effort to curb foreclosures, some fear the nation's housing troubles won't end anytime soon. Many people now owe more than their homes are worth.
"The real trouble right now is that as housing prices continue to plummet, the odds of people walking away increases," he said.
While Obama's plan to subsidize loan modifications will make monthly payments more affordable, it will lift few, if any, homeowners above water, said Letha Martin, owner of Mesa's Platinum Financial Services, which charges a fee to negotiate reworked loans for borrowers.
Barring a miraculous reversal of the housing downturn, the only way to do that would be to reduce the principal balance for every upside-down borrower.
Martin and others agreed the cost of doing so would be in the trillions of dollars.
"I don't know how they're going to do that without making these banks bankrupt," Martin said.
The Obama administration's $75 billion mortgage-relief effort is projected to help as many as 9 million overextended borrowers, including thousands in Arizona.
If recent history is a guide, though, financial relief for some could be short-lived.
More than half of the past-due loans modified in the first half of 2008 were back in default six months later, according to a recent report by federal bank-oversight officials.
While many have lauded President Barack Obama's plan as a worthwhile effort to help struggling homeowners, local and national experts said there are clear signs that loan modifications that reduce payments, interest and even principal won't significantly curb foreclosures.
In the Phoenix area, modifications are even less likely to prevent foreclosures than they are nationwide, experts said. Borrowers who owe far more than the current value of their homes may quit paying their loans regardless of how affordable the payment is.
"We are one of the redefault centers of the United States," said Anthony Sanders, professor of finance and real estate at Arizona State University's W.P. Carey College of Business.
The mortgage-relief plan aims to encourage more lenders to offer more borrowers more-affordable payback terms.
But Sanders said the high rate of recidivism among mortgage borrowers who have previously defaulted suggests that a program involving mass modifications could have the unintended effect of prolonging the foreclosure crisis.
"It's just postponing the inevitable," he said.
Mixed results
When federal regulators began tracking loan modifications in early 2008, they wanted to know what happens after struggling borrowers receive help.
What the regulators found was that more than one-third of the 72,877 delinquent modified loans tracked in the first quarter of 2008 were back in default within three months and more than half were in redefault after six months.
The 114,439 loan modifications granted in the second quarter fared even worse after three months, with more than 40 percent back in default.
The banks negotiated 133,106 modifications in the third quarter, but their success rate is not yet known.
A follow-up to the report, which covered first mortgages serviced by the nation's nine largest banks and five largest savings and loans, is expected later this month. It will show whether the redefault rate leveled off after six months or continued to climb.
The report showed that more lenders are embracing modifications to prevent foreclosures, but there also is evidence borrowers have not been treated equally.
The redefault rate was significantly lower in 2008 for modified loans funded by the banks negotiating the deals, compared with loans sold off to investors as mortgage-backed securities.
Bank-held loans modified in the first quarter had about a 51 percent redefault rate after six months, while securitized loans had a redefault rate of about 61 percent.
Bank-owned loans also performed better after modification than those backed by government-sponsored lending giants Fannie Mae and Freddie Mac, the report shows.Fannie Mae and Freddie Mac loans redefaulted at a rate of about 57 percent six months after being modified.
Comptroller of the Currency John C. Dugan told a congressional committee in December that loan servicers appear to be doing more for troubled borrowers when a foreclosure would directly affect their employer's bottom line. Securitized loans also are less likely to receive significant modifications because loan servicers must abide by contractual obligations made to the investors, said Michael Brauneis, director of Protiviti, a consultant to the lending industry.
Even if loan modifications ultimately would save those investors from further losses, it's often difficult to garner consent from the many individuals and funds invested in the loans to modify the terms, Brauneis said.
"Many of them have threatened to sue, and some of them have already sued," he said.
New hope
Obama's mortgage-relief plan combines lender incentives and borrower assistance. In addition to loan modifications, refinancing is available to some homeowners.
In Arizona, where home values have plummeted beyond the threshold for most to qualify for refinancing, a loan modification is expected to be the most popular.
It is designed to help owner-occupants whose payments have become unmanageable despite their best efforts. The goal is to reduce borrowers' monthly mortgage to no more than 31 percent of gross household income.
To accomplish that, the lender must first agree to reduce the monthly payment to 38 percent of the borrower's gross income if it isn't already. The government then will provide matching funds to the lender to further reduce the payment to 31 percent.
The first step will be to reduce the loan's interest rate to as low as 2 percent for five years, after which the bank could increase the rate by 1 percent each year until it is back in line with the going rate. If that isn't enough to bring the payment to 31 percent, the lender then will extend the term of the loan to 40 years and can take additional steps, such as setting aside part of the principal. Lenders will receive various payments to encourage them to modify at-risk loans and "success" payments if their borrowers keep making payments.
Lenders will also receive up to $1,000 a year for five years to apply toward the loan balances of homeowners who have stayed current on their modified loans.
Patricia Garcia-Duarte, executive director of Neighborhood Housing Services of Phoenix, said counselors at her non-profit housing-assistance service should be able to help more borrowers obtain sustainable loan modifications.A key part of the modification program, lenders say, is the standardized approach. Before, different lenders used different terms with different borrowers. The uniform approach is expected to allow more people to rework their loans at more favorable rates, though lenders that did not accept federal stimulus money are not required to follow the new rules.
"Before this, everyone was all over the board," Garcia-Duarte said.
Even before the Obama administration unveiled its plan, lenders were changing the terms of loan modifications as they learned how many recipients of the earlier modifications were not keeping up on their payments.
Brauneis said lenders have become more willing to further reduce interest rates and monthly payments since bank regulators began tracking redefault rates in January 2008.
Unfortunately, the economy has continued to shrink during that time, while unemployment claims have nearly doubled.
"Redefaults are not just the loan servicers' fault," he said.
In the fourth quarter of 2008, lenders began transitioning to a more standardized approach to loan modification, and Brauneis said they even started seeking out at-risk borrowers who had not yet requested assistance.
"That's the direction the industry is going," he said.
It's too early to know whether the standards lenders adopted were effective at creating sustainable payment plans.
Not enough?
Despite the federal effort to curb foreclosures, some fear the nation's housing troubles won't end anytime soon. Many people now owe more than their homes are worth.
"The real trouble right now is that as housing prices continue to plummet, the odds of people walking away increases," he said.
While Obama's plan to subsidize loan modifications will make monthly payments more affordable, it will lift few, if any, homeowners above water, said Letha Martin, owner of Mesa's Platinum Financial Services, which charges a fee to negotiate reworked loans for borrowers.
Barring a miraculous reversal of the housing downturn, the only way to do that would be to reduce the principal balance for every upside-down borrower.
Martin and others agreed the cost of doing so would be in the trillions of dollars.
"I don't know how they're going to do that without making these banks bankrupt," Martin said.
Subscribe to Posts [Atom]
