Phoenix AZ | Scottsdale AZ Real Estate

Foreclosure filings continue to rise as a "combination of weak housing sales, falling home values, tighter mortgage lending criteria and a slowing U.S. economy has left financially strapped homeowners with few options to avoid foreclosure."

US foreclosure filings surge 53 percent in June

In fact, ... According to RealtyTrac, .....   

• One in every 501 U.S. households received a foreclosure filing last month
• Foreclosure filings increased from a year earlier in all but 11 states.
• Nevada, California, Arizona, Florida and Michigan continued to have the highest foreclosure rates
• Economists project 2.5 million homes nationwide will enter the foreclosure process this year

Please don't shoot the messenger.

I am equally frustrated by the news and continually angry at the  ATTENTION GRABBING Headlines that the media loves to use to help sell papers.

Will someone please suggest a great real estate related news headline that I can send to the Associated Press or CNN that they can run tomorrow on the front page to re-instill consumer confidence in the continually frightened consumer.

thanks for sharing.

James Wexler, Associate Broker

Coldwell Banker

In this day of not enough buyers and too many sellers, ..

I am curious if any of my fellow real estate and mortgage industry professionals ...

have (you) purchased qualified leads from 3rd party providers?? 

Can you suggest the names of any  lead providers .... 

that are offering offering live real estate buyer leads and/or mortgage sales leads.

I am interested primarily in real estate leads.

However, I have received referrals from mortgage agents who have prospective buyers that asked to be pre-approved and don not have a agent.

Any names, contact info, suggestions, recommendations, personal experiences or warnings would be greatly appreciated.

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James Wexler  ~ Phoenix | Scottsdale Real Estate Blog

480.221.8080

I would like to share an experience that happened to me this morning.

Starts with  --------      A (REO) bank-owned property listed at $250K.                       

Mr. & Mrs. Client submitted an offer 5% above list price.

The client is approved up to $300K.

The client is using an FHA loan with 3% down.

The offer was rejected for a lesser price offer.

The listing agent told me the bank is simply not accepting FHA buyers with only the minimum 3% down as the loan denial percentage is more than 40%.

I have been involved with numerous REO transactions.

However, this is the first I have heard of banks taking lesser offers if a buyer has small down payments.

Has anyone else had similar experience or heard of this from banks?

Thank for sharing.

James Wexler - Wexzilla - Phoenix | Scottsdale Real Estate Blog

480.221.8080

Although recently done away with by Fannie Mae and Freddie Mac, you may have heard lenders tell you that the real estate purchase is in a "declining zip code". 

What does declining 'zip code' term mean?  

Simply put, banks and lenders charge either higher rates, fees, reduce loan amounts and/or require larger down payments for qualified buyers who wish to purchase in these zip codes.

In fact, declining market lending policies were quite common-place these days. According to the Realty Times, somewhere between 8,000 and 10,000 zip codes are affected nationally.

We were suffering the  declining 'zip code' designation in almost every city in Arizona , including Mesa, Chandler, Phoenix, Glendale, Peoria, Tempe, Mesa; Almost every city except for Paradise Valley and Scottsdale.

The question that is being raised by industry groups and many minority groups is whether or not the declining zip code designation was a self-fulfilling prophecy?

Here's a common story:

A buyer finds a home they love, makes and offer and gets the contract accepted. They buyer then goes to a lender who tells them that the bank will require more down payment then previously accepted because , "the home this buyer wants to purchase is located in a "declining zip code".

Mr. Buyer's American dream is crushed. They question the home purchase and decided to cancel the offer (citing financing contingency) and wait to purchase until the market drops further. Thus, no purchase, no sale, no transation in the market.

Ask yourself what you would do if a lender told you the home you love is in a declining market. In a sense, (bank opinion) is that the home is worth less or will be worth less than you are paying.

I understand banks want and need to lend money prudently.

However, are lenders telling us the market is worth less than buyers actually believe?

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Copyright © 2008 By James Wexler, All Rights Reserved. *Is the 'Declining zip code' designation a self-fulfilling prophecy*

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

When the FED last month , Chairman Bernanke hinted the move to either reduce or in that case remain the same could be the last in a series dating to past -September.

The question on the minds of Wall Street and Main street is , "is this holding steady of key interest rates enough to stimulate the economy and the housing market" ? - can it help real estate sales in Metro Phoenix ?

Clearly, the President, Congress and the FED are taking action to help stimulate growth and help real estate to prevent either a recession or further recession, depending on who you ask.

However, rate cuts (for the most part) have not helped most of the economy and the all important bond market (which dictates mortgage rates) has not risen much forcing interest rates down only slightly down this year.

The question is on everyone's mind; Are they (the FED) done cutting rates? and , what else can be done in terms of rate cuts help stop a continued real estate market decline?

Opinions differ. Look at these 2 opposing opinions

Rate Cuts May Not End As Soon As Wall Street Thinks - by CNBC

and

5 Reasons the FED is Done - or Should Be! - US News & World Report

personally,.. I like the current position of holding steady.

the economy needs some time to absorb the massive 2.5% drop in rates so far this year to offer a more clear indication of where we are and where we need to go.

Certainly , with rising gas and food prices, declining housing prices and consumer spending a weak dollar abroad, it seems we need further cuts.

In Arizona, at least in the greater Metro Phoenix area, we need more than most.

I would love to hear your thoughts and opinions. Thanks for sharing.

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Copyright © 2008 By James Wexler, All Rights Reserved. *Do we need more Interest Rate Cuts to help Housing? *

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

The National Association of Realtors (NAR) reported that Pending Home Sales fell 4.7% , 14% below its level in May 2007; a steeper decline than the 2.8% fall that economists had forecast.

The rebound in housing seems to be a little further out than previously expected.

According to Mike Larson, real estate analyst at Weiss Research, says the "decline was caused by weak consumer confidence, rising unemployment, tight credit conditions and high energy and food costs straining household budgets."

The NAR said existing home prices are also expected to fall.

The NAR also reported that Pending home sales declined in all regions; down 1.3% in the West, 2.9% in the Northeast, 6% in the Midwest, and 7.1% in the South.

often you will find homes listed on the local (ARMLS) Multiple Listing Services (MLS) with the term "AWC-C" or "AWC-I" or "AWC-O" .... what do these Contingency terms mean?

I should point out I am referring to Arizona Real Estate Contracts that would be in use for ARMLS which includes the towns of Phoenix, Scottsdale, Tempe, Fountain Hills, Mesa, Peoria and Glendale.

AWC-C - this is a home for sale, under contract, however, the purchase is contingent upon the sale of the buyer's property. In this market, I generally advise my clients from taking these type of offers. However, in some cases , this can make sense.

AWC-O means that the home is under contract per a buyer's 'option' to perform. The buyer, has a certain time frame that they may elect to exercise the option to purchase at a set price. Make sure you ask the listing broker when this option expires so you know if and/or when to make your offer.

AWC-I - this contingency provides the seller the ability to continue to market the property for back-up offers, possibly due to doubts of the buyer's ability to obtain financing.   

The AWC-I is very common these days , as REO/ bank owned properties or 'short-sales' will still entertain other offers while the bank is making a decision.           

Be careful to look for these contingencies.

If you are a buyer, make sure your Realtor asks the listing broker if the home is Active with any contingencies so you know what is the best way for you to proceed with your offers.

If you are a seller, don't hesitate to use these contingencies, to protect yourself from questionable buyers and keep your home marketed actively for back-up offers.

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Copyright © 2008 By James Wexler, All Rights Reserved. *Active w/ Contingency in AZ - should you make an offer*

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

Foreclosures to rise whoever wins White House -  according to JEANNINE AVERSA, AP Economics Writer ,

I dont know about the rest of you. However, I am past tired of news headlines that have gone past one sided negativity and have now reached past to utter hopelesness.

I agree with Ms. Aversa , " Even the optimism that surrounds a new president taking office cannot resurrect home values overnight, and presidents have no direct ability to reduce rising mortgage rates "

And yes, she correctly points out, "

A long-term solution is tied to a turnaround in house prices. Slumping home values are blamed for the bulk of the increasing foreclosures. Troubled borrowers are left owing more to the bank than their homes are worth, so they walk away from their homes. Dumping more empty houses on the market adds to the pile of unsold homes, and that drives home prices down further.

 Yes, Presidents cannot change housing prices.  However, realism needs to be sprinkled with hope and possibility.

Both candidates have plans. The legislature is trying to pass legislation to do what can reasonably done to help best mitigate and manage a situation that they did not cause.

Thanks for reading and I look forward to hearing your thoughts and dare I ask, 'political opinion'

James Wexler (480) 221-8080 www.Wexzilla.com << Phoenix | Scottsdale real estate blog

According to www.IRS.gov  ....

Rising gas prices are having a major impact on individual Americans. In Metro Pheonix, you cannot walk out the front door without driving 20 minutes each direciton.

"In recognition of recent gasoline price increases, the IRS made this special adjustment for the final months of 2008"

Given the increase in prices, the IRS is adjusting the standard mileage rates to better reflect the real cost of operating an automobile,

The rate will increase to 58.5 cents a mile for all business miles driven from July 1, 2008, through Dec. 31, 2008.

This is an increase of eight (8) cents from the 50.5 cent rate in effect for the first six months of 2008

I am not a CPA or Tax Attorney, so please consult your tax experts on how best to expense mileage or vehicle use per you personal situation.

I happy to know that our Government is aware of all Americans who are being squeezed by high gasoline prices and are taking steps (hopefully, one of many to come) to help alleviate soaring energy costs.

Thanks for reading.

- james wexler

I have only been a member of Active Rain for a little more than a month.

Prior to joining, I aggregated a list of blogs in my Google Reader and kept up with some of the best writers in the worlds of Real Estate and real estate technology.

If you are interested, here is a list (in no particular order) of some I highly recommend.

• 3 Oceans Real Estate - San Francisco Bay Area
• Transparent Real Estate - Real Estate Technology
• RealEspace.com - real estate technology
• Bawld Guy - real estate investing and planning
• Brian Brady - Mortgage Rates Report - 

Pleae add to the list.

There are a lot of insightful, talented and humorous bloggers out there. I would love any suggestions.

Thanks and I look forward to hearing your recommendations.

James Wexler - Wexzilla.com - Phoenix|Scottsdale Real Estate Blog