Phoenix AZ | Scottsdale AZ Real Estate

A quick post for my fellow real estate professionals in Arizona;

as well as home buyers and home sellers who may be in escrow and should be aware of the AAR (AZ Association of Realtors) legal opinion on...

‘Appraisal Contingency' and how it affects buyer & seller rights, time frames and earnest monies.

Please note, this opinion pertains only to the AAR Purchase Contract used in Arizona.

Neither the AAR or myslef is offering any opinion in other states.

However, I encourage all Real Estate Agents and Brokers to examine rules in their respective states.

In the past there has been some confusion on whether or not,

according to AAR Purchase Contract ..... as it pertains to cash buyers,

Can Cash Buyers ** cancel a contract if the home fails to appraise for the purchase price anytime during the escrow period??

In essence,

does the appraisal for sales price contingency runs the life of the contract??

According to the newsletter this month from AAR, This is NOT TRUE!

"Cash buyers can only cancel a contract within the inspection period, if a home fails to appraise.

Lines 59-61 (of the AAR Purchase Contract) only apply if financing is involved.

I hope this helps! and Good luck to all of you!

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Contact James Wexler (480) 221-8080 for all your Phoenix | Scottsdale Real Estate needs.

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When it comes to buying a home or investing in real estate, there are two matters to always consider.

The price of Real Estate versus the price of money.

In the last couple weeks, interest rates and long-term mortgage rates have risen.

30-year Fixed mortgage rates have risen above the the 6% level a few weeks ago.

Wall Street thinks the FED is done cutting rates for the time being as a result of inflation fears, the election outcome and to see how the Housing Rescue bill will take effect.

why is this important when it comes to buying real estate?

On one hand, as Lewis Corcoran, a very talented mortgage broker points out , "We can never expect people to buy homes simply because, as the National Association of Realtors keeps saying and has been saying for 2 years now: "now is a great time to buy a home." as we do not know for sure when and where the bottom will be found.

However, one must also take into consideration that if the experts are correct and interest rates do continue to rise  into 2009, then, ...

No matter how you cut it, even if home price remain level or even decline slightly, the actual cost of the home is rising. (Please see Home Prices down Price you pay is Up)

Again, how you finance your home can be as important as the price you pay. The price of money is steadily rising. If we have hit a bottom in real estate prices, then the cost of your home is going up. Period!

If you are in the market to buy and believe that the market has neared a bottom in Phoenix or Scottsdale or Fountain Hills or any town in your area; If you find a home that is a good value for you and your family that offers you a place to live, favorable tax treatment and you can lock in an affordable 30-year or 15 year fixed monthly mortgage payment , then consider making an offer on that home you have been watching.

Again, every situation is different, so please speak with mortgage and real estate professional to help evaluate whether now is the right time to buy.

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Copyright © 2008 By James Wexler, All Rights Reserved. *The Price of Real Estate vs. The Price of Money*

Contact James Wexler (480) 221-8080 for all your Phoenix | Scottsdale Real Estate needs

I have been hearing more and more stories of buyers approaching sellers with offers that include "Cash-Back". Why is this white collar crime and mortgage fraud making a re-occurrence? - Buyers are taking advantage of 'desperate' sellers hoping they will cross the line to do anything to sell a home.

Let me be clear that it is illegal. Period! In fact, on June 19th, the FBI charged More Than 400 Defendants Charged for Roles in Mortgage Fraud Schemes as Part of Operation "Malicious Mortgage.

A cash-back transaction scenario is where a buy pays more than a home is worth with the extra money being paid from the seller (outside of escrow) back to the buyer

Wikipedia defines Mortgage Fraud Cash-Back Schemes:

"The buyer and seller or the buyer and real estate agent collude to deceive the lender as to the true sale price of a property. The seller or the real estate agent gives the buyer a cash rebate which is not disclosed to the lender. As a result the lender lends too much, and the buyer and/or seller pocket the overage. This scheme usually requires appraisal fraud to deceive the lender. "Get Rich Quick" real-estate gurus' courses frequently rely heavily on this mechanism for profitability"

Here is a Cash-back Scenario"

1. Homeowner lists home for $320K
2. Buyer approaches seller and offers to pay$400K and ask for $80K extra paid back to the buyer after and outside the escrow.
3. Seller agrees as still receives the $320K net they had hoped
4. Buyer is able to put down 20% on $400K ($80K) and receive a 30-year fixed mortgage with no PMI (private mortgage insurance)
5. Buyer then receives the $80K back after the close of escrow; thus, getting a fixed rate, no PMI mortgage with no money down.
6. other situations are buyers putting down $40K and getting $40K cash back in the buyer's pocket.
7. Buyers are committing fraud.
8. Buyers and sellers are inflating home prices which as the recorded sale becomes a 'Comp'.
9. Houses usually go into foreclosure further hurting the housing market.
10. Banks and shareholders take the losses.
11. Losses are passed on to fair dealing consumers in higher rates and fees and stricter lending guidelines.
12. All of these prevent buying; Lack of buying causes prices to fall or prevent recovery.

The Land 'Gold-rush' in Phoenix of the last 10 years saw the unfortunate proliferation of many unscrupulous brokers , appraisers, mortgage brokers, buyers and sellers who participated in cash-back schemes which hurt the honest majority and contributed to the large amount of foreclosures in metro Phoenix and many of the surrounding towns including Scottsdale, Tempe, Peoria, Gilbert, etc...

If you are approached with such a cash back deal or know of participants email: px_cashback@ic.fbi.giv

Thanks for helping the 99% who are contributing to your housing market and national economy.

For further details ask your local experts on Active Rain:

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Copyright © James Wexler, All Rights Reserved. *'Cash-Back' Deals and Mortgage Fraud*

Contact James Wexler (480) 221-8080 for all your Phoenix | Scottsdale Real Estate needs

More than 100 Million people tuned in last night to watch Sarah Palin (let's be honest here). Most watched with the morbid fascination of auto-racing (no offense to nascar fans) to see if she would get in the proverbial car crash.

First, let's call last night what it was, a glorified press conference. Most definitley, not a debate.  We watched well-rehearsed answers to previously know questions.

And, no matter what you think of the performances, we learned little new about the candidates or their policies.

Today, the spin-makers worked hard to declare their respective candidates victors in the vice presidential debate.

and 'who won the debate ?' , like everything else in politics, the answer depends on who you ask...

CNN Poll (think left wing media) claimed Biden Won , but Palin exceed expectaions.

However, of interviews with those watching the debate agreed that, Biden may seem more prepared to lead the country. However, Americans much better identified with Sara Palin's folksy charm and would me more inclined to vote for her.

If it is any indication of interest, internet search phrases for Palin and phrases and terminology used in her speech, oh, I mean debate, were of greater number and interest.

Who do you think won the debate? and more importantly, will it have any impact on the vote for President??

With the recent meltdown of the sub-prime section of the lending industry and re-setting of adjustable rate mortgages, there is now, more than ever, a call for more and more disclosure of how the industry operates, detail of loan structures, broker payments and rate transparency.

I need to point out that 99% of the mortgage brokers are honest, hard working, care about the clients best interest and provide an important service to the real estate and lending industry. I can without hesitation recommend many.

Unfortunately, there are always a few bad apples that spoil the bunch for the rest.

There are efforts from the government, to the major web sites, to smaller tech savvy entrepreneurs to address the challenge head on making the challenge Transparency is now available to the public as never before!

In my humble opinion, .... Transparency is the future of the mortgage industry.

More transparency and disclosure is always a good thing. It instills trust and confidence for the consumers and public. Most importantly, transparency protects everyone involved before a situation occurs; not after a problem arises, often before it's too late.

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Contact James Wexler (480) 221-8080 for all your Phoenix | Scottsdale area Real Estate needs.

The White House temporarily suspends "flipping rule that imposes a 90-day waiting period before foreclosed homes can be sold in order for these buyers to receive FHA (Federal Housing Administration) insured loans.

According to the release, ...

"For one year, the Federal Housing Administration will no longer impose a 90-day waiting period before foreclosed properties can be sold to receive government-backed loans" as "part of an effort to help speed the sale of foreclosed properties".

In Maricopa County, Metro Phoenix, we are suffering from some of the highest foreclosure rates in the country. In fact, the foreclosure rate has nearly tripled since 2007, according to research firm RealtyTrac.

As a result, it is imperative that buying restrictions are eased and tax advantages are offered to excite homebuyers to purchase foreclosures, short sales, bank owned real estate, REO properties and resale homes.

Until the supply of homes is reduced, it will be difficult to see any improvement in sales volume and sales price.

Further, foreclosed homes cause wonderful communities and its residents suffer as they wait for a recovery.

Mr. President, this is a move in the right direction in what I hope will be many initiatives, by the Federal Government to legislate changes to stimulate real estate buying and prevent more foreclosures.

Americans are not asking for a 'Bailout'. However, struggling homeowners across the country implore you to consider a bi-partisan bill that will support the American Housing Rescue and Foreclosure Prevention Act , and the needed Rescue Plan that will be voted upon today in the Senate and tomorrow in the House of Representatives

I encourage you to support legislation that would stimulate buying and would have lenders ease struggling homeowners' loans and make Federal Housing Administration refinancings more widely available.

Thursday's debate between Sarah Palin and Joe Biden offers the most intriguing political (or any) television we have seen in years.

The attention of Thursday night's VP candidate debate is driven by the public's fascination with Alaska Governor Sarah Palin who, despite her political obscurity, has raised McCains campaign awareness and chances.

Initially, Palin was praised as a superb political communicator for the delivery of her acceptance speech at the Republican National Convention four weeks ago.

But a series of shaky Palin television interviews have left even some conservatives questioning whether she is ready to be vice president.

Since last Friday's debate between McCain and Obama was widely considered a draw, the vice-presidential debate on Thursday night could swing those many who are still undecided.

McCain strategists are well aware Palin's glowing image has been badly bruised since the convention.

Saturday Night Live this past weekend ran a  (very funny) political skit about Sara Palin and her interview with Katie Couric.  The jist being that no matter what she says, (right, wrong, smart or otherwise) people like her more and more.

As she gets ready to debate Joe Biden , this is how one political expert describes her ..

""She did such a great job with just the glittering generalities and filling the room with her presence that people didn't care what she said about agriculture," Halcro says now.

"Palin's a master at telling you what color the sky is," "and people will still say,

'That's the greatest thing I ever heard.'

We will see on Thursday night how the inexperienced , yet, charismatic Palin does versus the veteren , outspoken and aggessive Joe Biden.

Please Leave a comment on what you think of the candidates. I would love to know what you think.

Peoria, is "Arizona's ninth largest city with an estimated year 2007 population of 153,592. Peoria is located in the Northwest portion of the Valley of the Sun with the state capital of Phoenix and the neighboring city of Glendale to the east, and the retirement community of Sun City to the west. About 25 minutes from Scottsdale.

 There are 2 particular communities in Vistancia that I recommend you visit.

Vistancia - self described as "authentic Arizona coupled with all the amenities of a progresive living environment" , this is "designed to completely satisfy the needs and wants of the community. Top-rated schools. A myriad of shopping opportunities and a bustling business core along the 303 transit corridor assure that the best keeps getting better, and more convenient, for Vistancia residents."

You can choose homes in 3 Villages of  Vistancia with "distinct lifestyle choices and amenities. You can choose from the family-oriented personality of Vistancia Village; the age-restricted lifestyle resort community of Trilogy at Vistancia; or the exclusive lifestyle offered by Blackstone Country Club."

Finally, there are 12 unique neighborhoods with some of the highest quality builders including:

• Ashton Woods
• Cachet Homes
• Engle Homes
• Maracay Homes
• Rosewood Homes
• Shea Homes
• T.W. Lewis
• Trend Homes

If you are thinking about buying a new home from a builder, the city of Peoria and the community of Vistancia offer more than 100 floor plans, breathtaking views, 12 villages with different amenities and a wide selection of builders that will more than satisfy almost every buyer in terms of quality and price.

Call me today, I would be happy to help show you Vistancia or to learn more about life in Scottsale and living in luxury communities in  Scottsdale call me at 480.221.8080

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Contact James Wexler (480) 221-8080 for your Phoenix | Scottsdale area Real Estate needs

Dear President Bush, Mr. Paulsen, and the members of Congress...

In 1982, Chile (the country , not the food) .... had a bank crisis that threatened the country future...

Here's what they did, .... 

• They made loans to banks with reasonable rates of interest
• The collaterlized the loans with stock in the company
• The recieved equity participation in the perfomance of the bank stocks
• No dividends would be paid to shareholders until loans where fully repaid
• No bonus paid to executives until loans were repaid
• The banks managed the assets, debt, with no governement interference
• some Increased regulation on banking reserves and lending guidelines
• No burden was passed on to tax holders

We clearly need to do something. And this is the only option that will satisfy (a majority) Democrats, Republicans and tax payers.

Let me know what you think, if you have other ideas, suggestions, criticism before I forward this to the powers that be.

As we are watching the rhetoric of the Debates and the campaigning to be the next President of the United States.

One of the key issues and question on many people's mind is what will either candidate do, if elected, to stimulate an ailing real estate market, especially here in Arizona.

Each candidate has expressed strong views on the housing market, sub-prime debacle, and the economy overall as high energy and food prices are cutting into many peoples ability to pay their mortgage.

Senator McCain was originally against strong Federal legislation in a sense bailing out home owners, investors and even banks who lent risky loans.

However, he has "joined Senator Obama in supporting the idea of the $700 Biillion Federal Bailout or "Rescue Plan" for the banks to create liquidity in the banking system

Sen. Obama has suggested $10billion in direct government funding to help homeowners sell their homes of modify their loans to avoid bankruptcy or Foreclosure.

Sen. McCain feels struggling homeowner and borrowers should share the responsibility and if helped should share equity (if there is a gain) with the lender and Federal Government.

Obama wants the government to lend money to struggling home owners. Money which usually comes in the form of higher taxes

McCain has pledged to eliminate (AMT ) taxes. A break that many Americans want (and need). However AMT tax cut with other extended tax cuts leaves less money help to home owners. Unless, of course, other government programs are sacrificed. A move, most do not want.

The November election and January inauguration is on the doorstep.

We have to see how the $700 Billion bailout shake out plays out. (kind of rhymes :)  ... for the housing and mortgage market to indicate what role and lwhat plan will work better for our 44th President.

Please contribute to a simmering and what is sure to become a boiling discussion and debate (argument ?) in the coming months.

I encourage everyone to chime in and speak your mind!! ... remember ,

$700 billion divided by $100 million is $7 thousand per Taxpayer !! 

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