Well some really interesting news from AAR last week. Apparently solar panels are becoming a big problem in Phoenix! A very interesting issue is arising in Phoenix with homes that installed solar panels using a lease. As people dashed to take advantage of the government rebate for installing solar panels, many found that the install runs upward of $50,000 for an average home. So companies not wanting to miss out, came to the rescue offering lease options for solar panels.
The problem stems arises when these leases are placed as a lien ahead of the mortgage. This is a major no-no in financing. When the home is sold there are three options. The new owners can try and qualify to take over the lease. The sellers can take the panels with them, which would require major roofing repair. Or the lease can be paid off which would eat up a lot of equity(if there is any) from the sale.
Unfortunately, it may never get that far because Fannie Mae and Freddie Mac have decided not to accept loans with Solar panel leases. This means that should you own a home with leased solar panels, there may not be financing available home. There are roughly 1000 homes in Phoenix currently stuck in this situation. This will be an upcoming conversation.
New information for June on Credit. Twenty five percent of Americans have a credit score below 600. Many lenders currently will not look at credit scores below 620. As of June the average credit score for Americans was 668. There will be a credit crisis in business in the future. I can only see two possible outcomes. Either credit score acceptance is altered to accept lower credit(seems like we have been down that road already), or businesses will extend less offers for credit. My concern is the number of people continuing to slide into this category. This greatly reduces the number of people who will qualify to buy homes. Finish this sentence for me, If a person does not have the credit or money to buy a home………
Ok, how many answered…”then they should not buy a home”? Well that was not the answer in 2006 and we are now paying for it. But keep an eye on banks as they need to sell off foreclosures and government as it needs to keep pushing the economy. This credit issue is on the rise!
Washington was taking a look at T. Boone Pickens natural gas bill last week. This could be a smart move for our country. We have an over 100 year supply of natural gas in this country. To put into perspective, if our natural gas reserves were measured and compared to barrels of oil, we have seven hundred billion barrels which is about 2.5 times more than Saudi Arabia has oil in their reserves. As some of you may know, I used to manage at Frito Lay. My entire area of Florida was using propane fueled delivery vehicles back in the late 80’s. From personal experience I can tell you, it works and works well. Motors took regular maintenance and the truck drove well. This is the solution to a lot of issues. Most of all putting Americans to work in the US! Working Americans equal home sales for you and I.
I hope you all have a great week and should you need help with a loan, please give me a call.
This is not the opinion of Brad Bergamini, Realty Executives Northern Arizona or any of its affiliates. This post is for informational purpose only and is not guaranteed and does not render as legal advice. Buying and selling Real Estate in Arizona or Prescott Arizona is a serious task and should be consulted with personally with Realtor or Real Estate Attorney. Please visit my website for contact information