Phoenix AZ | Scottsdale AZ Real Estate

Although I work on Sundays, it is my favorite day of the week. I wake up early , coffee made (is there really any better invention than the coffee timer?) , any way, I digress.

I wake up, trudged down stairs to my coffee, take Riley (my Jack Russell Terrier) for a long walk and upon my return sit down for hours and pour through that thick (and heavy) Sunday newspaper; like desert, I save the real estate section for last.

On top of the front page, was a bright yellow sticker that stated....

"FORECLOSED HOME AUCTION" with a tag line claiming Over 450 homes for sale! - (US Home Auction)

There are many sites to follow foreclosure statistics , Foreclosures for sale , and National Foreclosure Auctions

Lately, in the Phoenix Valley and towns of Glendale, Peoria, Fountain Hills, Tempe and others, we have all seen a lot of these advertisement lately from Foreclosure Auction companies ,  and ..

Foreclosure and Short-Sale Bus Tours that tempt the few buyers there are in today's real estate market with too good to pass opportunities.

To be fair, many of the Phoenix area Foreclosed homes for sale at these Auctions are good buys.

However, here are some myths and pitfalls of which to be aware...

• Foreclosure Homes are not always under market value -
• Often, you do not have access to preview the homes thus potentially buying homes in disrepair
• Cash is often required to purchase with no promise of Re-Finance , thus tying up a large amount of cash
• if buying for investment , there is no guarantee you will sell in the future, thus an expensive on-going cost
• these companies often will Auction only one home in a community per auction, to imply that foreclosure is the only home for sale in the neighborhood. Next auction , don't be surprised if the home next door is now up for Auction.
• Bank owned homes (REO)are available that you can inspect, negotiate prices and finance on the MLS

These companies are providing an unfortunate, but honest and necessary service.

In order for the real estate market to recover, we need to reduce the amount of Foreclosures so seller of re-sale homes can finally sell homes at more reasonable market values.

I just want to urge awareness and prudent buying when looking at Foreclosure Auctions as some times the deal that is too good to be true , too often is!

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Copyright © 2008 James Wexler, * Foreclosed Home Auction - 450 homes must be sold *

Nationally, there are a record number of builders going broke and looking to the U.S. bankruptcy court for protection from creditors.

The Arizona Department of Real Estate is now posting information on builders who are in bankruptcy or are having financial difficulties so consumers can make informed decisions and take steps to protect

A Phoenix area brokers meeting  ....

warned agents who pass along this information to prospective buyers interested in any of the referenced developments. 

 "Financial difficulties" is a very subjective phrase and we don't want to say anything that could be construed as stigmatizing the development or perceived as slander against the developer.

Agents should be very careful not to give any opinions regarding these buildersor developments - they may pass on this ADRE information and advise the buyers to talk to the builder about their financial stability and to check them out themselves.

Be careful, what you say. 

Your job is to provide the information and resources to your clients. 

Advise your clients to do their own due diligence and make their own decisions based upon that information.

- james wexler

An increasing number of all types of homeowners, including investors, primary residence and 2nd home owners, are starting to simply walk-away from their homes and mortgages.

They are asking the question of themselves , "Why should I keep paying money each month on a depreciating asset?"

They are no longer asking the question, "what will happen to my credit?"

The problem for these sellers is they cannot sell their home. They cannot re-finance due to declines in home values and strict lending standards.

This growing situation is not limited to sub-prime borrowers and individuals with poor credit history.

What is alarming is that many of these borrower are people with good credit who simply do not care if they have a foreclosure on their credit.

Real Estate simply do not want to pay money (even though many can afford to pay) because the home is worth less than they paid.

I am curious if my fellow Active Rainers are hearing the following sentiment??

Look forward to hearing your stories from the trenches -- thx, - Wexzilla

 Fannie Mae announced a new policy to make every effort to help the mortgage and real estate markets by reducing down payment requirements in areas that were previously designated "declining zip codes'.

Big Brother must be listening or at least reading Wexzilla (please see May 1st Blog -Is the declining zip code a self-fulfilling prophecy? )

According to Fannie Mae the new national down payment policy will supersede the policy the company adopted in December requiring higher down payments in markets where home prices are declining , essentially requiring higher down payments in these markets (virtually all of greater Phoenix was designated as ‘declining‘ zip code.

Beginning, June 1st for loans that the company will buy or guarantee, Fannie Mae will accept up to 97% loan-to-value (LTV) , only a 3% down payment for most loans. 5% down payment for less stringent underwriting.

As part of its "Keys to Recovery" Initiative announced May 6th, , Fannie Mae continues to make every effort to to encourage legislation to help aid an expeditious recovery in the mortgage and housing market.

This initiative should help ease the difficulty for borrowers to get loans and as a result we should see more purchase and sales of homes from Scottsdale to Mesa to Fountain Hills to Peoria to Glendale and throughout all of metro Phoenix.

Fannie Mae has been commended by both Republicans, Democrats, the National Association of Realtors ( NAR Commends Fannie Mae) , the National Association of Home Builders and and the National Housing Conference .

I would also like to say that again today, as it has done so many times for millions and millions of families across the country, Fannie Mae has shown itself a pioneer in the housing and lending industry and a friend to the American homeowner.

We urge that Freddie Mac follow your lead and the House, Senate and President listen and learn when deciding on future legislation.

On behalf of Wexzilla's many readers. We applaud you Fannie Mae!

each day, I am hearing more and more stories from home owners who are going to use their home equity line of credit (HELOC) and are discovering that they have been either cut or completely frozen and cut by their bank. Believe me, it is happening here and often in Phoenix, Tempe, Scottsdale and even Fountain Hills.

If the above (bad) news is a surprise to you. I am sorry to be the one tho tell you that , Yes, in fact, banks have the right to shut down your line of credit for almost any reason. however, specifically, in decline of your home value. It is somewhere in the small print, that we all should read, but never do.

Large lending institutions are constantly, running large computer programs through their portfolio of loans evaluating risk. What criteria they use is not public knowledge.

However, it is safe to say that on an hourly , if not minute by minute basis, banks are analyzing the subject property's area, recent sale prices, active days on market of homes, supply of homes on the market, foreclosures, short-sales, unemployment, food and energy prices effect to derive present and future value of the home and its risk pertaining to the owner based upon the home owners past and present credit situation.

Unfortunately, the bank does not need to provide a reason or explain why they cut your HELOC. They just send you a letter.

Keep in mind one thing, you paid for the right to use your money. So you can fight for that right. If you fall into the above situation. Contact your bank. Ask for an approved appraiser that the bank will accept to show them that the equity still exists in your home to support your HELOC.

Finally, if that does not work, there are banks out in the market who will 'Re-Fi' your home.

A last resort, call your mortgage broker or banker and get another HELOC.

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Copyright © James Wexler, . *Phoenix Arizona lenders freezing Home equity line *

I have read several blogs, news headlines, and even CNBC stories about this new sensation sweeping the Nation and the mortgage and lending business. Its called ....

The Down Payment. 

Apparently, at one point in time the Down Payment was a common occurence when someone decided to buy a home and apply for a loan.

Well the Alt-A, option arms, Liar loans, ninja loans, and down-payment assistance from sellers and charitable down payments put a stop to all that "having a down payment nonsense".

People could buy homes with no money. It was great for buyers, sellers, lenders and real estate agents, me included.

Unfortunatly, it seems you need money to be able to afford to keep a home , even if you didnt need money to buy one.

Now, those damn lenders are requiring a down payment. Maybe this whole down payment will catch on like the Green Movement; and good loans , by solid borrowers will get the real estate enging revving again.

- james wexler , a.k.a. Wexzilla

Until the the real estate boom that we had here in Scottsdale and the many towns around Phoenix, of 2001-2005, people thought of homes as exactly what they are; a place to live and call home.

However, with all the water cooler stories of getting rich from the real estate 'gold rush',

 a different thought process creep into our consciousness. The primary purpose of home buying became "Investment"; not primary traditional reasons of:

• Use -- as a place to live
• tax break,
• inflationary hedge
• long-term savings
• longer-term capital appreciation

Do not think, foremost, as your home as an investment. History tells us that over the "long-term' , families do create a nest egg and acquire capital appreciation. However, The key phrase to remember being "long-term".

A house should be a place to live. A place to enjoy. A place to raise a family. A place to meet friends and neighbors. A place to develop roots and community bonds. A place to call home.

Considering today's real estate market and today's prices, you can realize this important part of the American Dream if you buy with the above factors in mind.

If you buy the home you love, in the community you want, at the price you can afford, (Most importantly, the price you can afford) , all of the secondary reasons home ownership is such a foundation and important part of our culture and economic worth.

• Buy your next house as a home, first!
• Plan to live in the home for at least 5 years or more.
• Make sure you can afford a fixed mortgage payment for at least that time.

If history has told us anything, capital appreciation and equity growth should occur nicely for home owners over  a long period of time.

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Copyright © James Wexler  * Don't think of your home as an Investment*

The Real Estate market is going through some changes. That is the nice way of saying, "Times are Tough".

The Phoenix Real Estate Market is suffering from an unusually large overhang in inventory led by one of the nation's leading amount of foreclosed homes.

Last month, as much as 20% of Real Estate agents in Maricopa County (Greater Phoenix) did not renew their MLS dues. Meaning they did not think $264 was worth keeping their license active.

Motivational Seminars and Get-Rich training programs are on the rise as they pedal sunshine during the rain.

Here is something to consider whether you want to go forward and build your business. Coca Cola spends more money each year than they did the previous year; for about 100 Years!!

Last year, Coke spent more than $700Million. (that's 700 Million dollars) on advertising.

One thing is for sure, there is not a person on the planet that does not know Coca Cola. Why does the Coca-Cola company spend $700Million on advertising?

Because, Coca Cola knows that if they do not continue to market and advertise they will lose business. Period!!

If the most recognized name in the world, Coca Cola spends more and more , even when times are tough, shouldn't we do the same?

If we are not making the difficult investments (financial, time and other) into our own business now we are likely losing ground on our competition and may not be around when the market turns.

- james wexler

Today on Wall Street, "Investors dumped the stocks of Fannie Mae and Freddie Mac on Monday after Barron's reported the increasing likelihood of a U.S. Treasury bailout that would approach nationalization of the two housing finance titans." 

Freddie Mac and Fannie Mae have recently indicated that they do see challenging housing and lending markets for the near future and some further decline in pricing. 

However, today at least, investors seem to see a continued downturn in housing and lending was factored into the market by Wall Street (and Main Street )and possibly there may be moer Treasury involvement before a Real Estate  correction is near .

Since, my crystal ball works as well as you might expect, I don't know exactly what the next 6 - 12 months hold.

However, home prices are down nearly 20%+, some more than 30% in many areas of greater Phoenix. Some areas, where there was a lot of new home building like Queen Creek and North Phoenix, are down more.

Some towns like Paradise Valley, Scottsdale and the golf communtiy of SilverLeaf in DC Ranch are not as affected)

Many buyers are owning homes 30% less than they could have owned the same home just years ago. Mortgage rates are at or near historic lows and despite the negative headlines , the US is not going out of business.

If you find the home you love.

If you can afford your mortgage payment.

If you plan to stay in your home for some time.

this 'bad'housing market may prove be one of the best buying opportunities for you and your family.

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Copyright © James Wexler

I know its Friday and I should be happy.

However, I need to complain. 

Need to Vent a little to my fellow professionals and

Active Rainers, all of whom I have a lot of respect .

You all work hard as Real Estate or mortgage professional (and other industry related fields) at your daily job/career requirements.

Then you, somehow , find the time to comment, post blogs and share thoughts and ideas, criticism and musings, humor and gripes about all that is the wide and (mostly) wonderful world of Real Estate.

I have client who is in contract on their dream home.

The listing agent confirmed that this condo was FHA eligible. 

• Currently in contract,
• Need to close by month end as their lease is up.
• However, the lender just let us know the home is Not FHA eligible.
• Thus , no down payment assistance.
• They lost the home that they loved
• In serious time crunch as seller assisted down payments are going away in 6 weeks.
• friendly recommendation to fellow Active Rainers. Don't make my mistake. Check for yourselves.
• Too many agents just want a contract and will tell you yes instead of saying I will find out.

Have a great weekend.  I will be showing homes.

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James Wexler