Phoenix's Next 'Silcon Valley' starts to Blossum

According to Forbes, we may actually be in the midst of a tech revolution right here in the valley.  As many of us know, we have been pushing the Silicon Desert idea for years, but recently new companies are moving or setting up shop here.  The word is getting out and it is just so much cheaper to begin a start-up here than in California's Silicon Valley.  According to another blog writer, Francine Hardaway, there is a talent war in the Bay area that drives up the price of technical talent and the high costs are causing them to run out of money too soon.  In addition, while it may be controversial, housing more conducive to young affluent buyers in downtown Scottsdale for instance can only help.  While the low cost of doing business here is an asset, the funding mechanisms are not yet following as quickly.  However, slowly but surely the word will be out and the venture capitalist will follow. (we hope)

'Short Sales' may become 'Shorter'

A recent announcement from the Federal Housing Finance Agency stated that as of November 1st loans held by Fannie Mae and Freddie Mac will start limiting the amount second lien holders can collect at $6,000.  It is hoped that this will reduce greatly the time is takes to close the contracts on these properties since the second lien holders can no longer hold up the process by trying to negotiated higher settlements.  If these properties were to foreclose, the second lien holders would not receive any proceeds from the sales.

In addition, it was also announced that homeowners with significant financial difficulties but not behind on their mortgage payments may also be eligible to short sell their homes.  I know of one major bank who is doing exactly that.  It seems with all of the recent data from foreclosures, the banks may have figured out they are better off short selling rather than foreclosing.  If they foreclose, they risk damage to the asset(dwelling) either by an angry homeowner or vandalism and having to sell at more of a market discount than a short sale.  In most short sales, the property will be taken care of better by the owner since they will probably live in the property until right before the sale closes escrow.