Phoenix AZ | Scottsdale AZ Real Estate

8/8/8 - August 8th , 2008 - Let the Games Begin - The Olympics are finally here. America is excited. The World is excited. I am excited. 

Over $1Billion spent on Advertising. (yes, 1 Billion Dollars) for 2 weeks, thats only 14 days of Olympic events. Much of which (outside of Tack& Field and swimming ) which no one watches.

This year, (or this 4 years) Swimming has surpassed Trak & Field as a true phenom, Michael Phelps, our greates Olympic athlete goes for 8 Gold Medals (he already as 14 medal in his illustrious career). If he wins 8 medals, he will be arguably the greates American Olympian we have know. Do not miss history that you will be able to tell your kids about for the rest of your life. The day you saw the Great Michael Phelps win 8 Gold medals (in 1 Olympics!!)

Back to the $1billion,  It got me thinking (and dreaming:)

I have decided to start a campaign for the city of Phoenix to get the Olympics.

I know they say it is too hot in August (hye, its a dry heat :)..... , but this is the boost that the real estate in Greater Phoenix needs. (of course, I am optimistic , things will be much better in 12 years.

ok., I am making a stretch , but hey -  interest rate cuts havent helped, so why not the Olympics.

See you in Pheonix in 2020 and enjoy the next 2 weeks (remember , its only every 4 years)!! 

Let the Games Begin!

No Quick Recovery, says NYU Prof ; though, he said that he thought another 5% drop. Maybe 10-15% Max!

The naysayers were yelling with outright claims of Real Estate Armageddon,

• • •  
      • No bottom til 2012 says another professor
      • Downward spiral that cannot be stopped
      • FED will be raising rates to fight inflation which will be catastrophic
      • futures market of S&P Case/Shiller index is forecasting price declines of another 30%.
        
      • We are in a downward spiral,
        
      • unemployment up and inflation up, prices will drop much further"

    My view is this - the herd has been wrong since the boom started.

Even Alan Greenspan who is now often credited with causing the housing bubble by drastically dropping interest rates , did not see any of this coming.

As Greg C said "EVERY-SINGLE-ONE of these prognosticators have been wrong about all of this for the past 3 years..

So, ...It stands more to reason  that..

all the masses, who are so sure the sky is fallng, who everyone is so quick to read and believe,..

will be just as incorrect as the masses who missed predicting this situation in the first place.

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Copyright © 2008 By James Wexler, All Rights Reserved. *No Bottom for Housing Until ... Forever*

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

Despite the sense of helplessness, borrowers have options to help avoid Foreclosure. 

Especially, those who face the potential loss off their home for other reasons than a re-setting higher rate of the many sub-prime loans;

this includes borrowers who face  foreclosure as a result of such hardships as loss of job, divorce, illness, etc..

Most borrowers, never seek help for many reasons from embarrassment of the stigma of foreclosure or more commonly borrowers are simply unaware help is available.

Foremost,

contact your lender as soon as you know that you may have some trouble making ongoing loan payments. The more time you have before foreclosure, the better.

Here are some options about which you should speak with your lender should the dreaded "Foreclosure" word creep into your life. Don't worry help is out there.

• Lenders can exercise, "Forbearance" in which the bank will suspend payments for a period of time
• Banks are working with borrowers on repayment plans which will enable you to keep your home and pay back deficient amounts in the future
• banks are making loan modifications such as extending the period of the loan or a reduction in interest rate. In fact, Bank America plans $40 Billion in loan workouts for their clients and those of Countrywide Financial.
• In some cases, Banks will accept a "Deed-in-Lieu of Foreclosure"in which the bank takes the home back and you walk away without a foreclosure mark on your credit history.
• The most popular option today is the "Short sale" in which the bank will accept less than what is owed.

Important Note , regarding Short-sales: make sure you get pre-approval from you bank as not all banks will accept a short-sale. In fact, many banks would prefer foreclosure as PMI insurance covers much if not all of the deficit that could be lost in a short-sale.

Be aware of your options surround a potential foreclosure. Don't avoid what may inevitable. Don't be ashamed. You are not alone.

Contact your bank and/or your real estate professional to help you through a difficult , but manageable process.

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Copyright © 2008 By James Wexler, All Rights Reserved. *Avoid Foreclosure -  contact your lender !*

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

In the year 2008, God came to Noah, who was now living in the United States, and said: 

Once again, the earth has become wicked and over-populated, and I see the end of all flesh before me. Build another Ark and save 2 of every living thing along with a few good humans. He gave Noah the blueprints, saying: You have 6 months to build the Ark before I will start the unending rain for 40 days and 40 nights.


Six months later, God looked down and saw Noah weeping in his yard - but no Ark.

Noah! He roared, I'm about to start the rain!   Where is the Ark?

Forgive me, God, begged Noah, 'but things have changed. I needed a building permit.


My neighbors claim that I've violated the neighborhood zoning laws by building the Ark in my yard and exceeding the height  limitations. We had to go to the Development Appeal Board  for a decision.


Then the Department of Transportation demanded a bond be posted for the future costs of moving power lines and other  overhead obstructions, to clear the passage for the Ark's move to the sea. I told them that the sea would be coming to us, but they would hear nothing of it.


Getting the wood was another problem. There's a ban on cutting local trees in order to save the spotted owl.  I tried to convince  the environmentalists that I needed the wood to save the owls - but no go!


When I started gathering the animals, an animal rights group sued me. They insisted that I was confining wild animals against their will. They argued the accommodations were too restrictive, and it was cruel and inhumane to put so many animals in a confined space.


Then the EPA ruled that I couldn't build the Ark until they'd conducted an environmental impact study on your proposed  flood. I'm still trying to resolve a complaint with the Human Rights Commission on how many minorities I'm supposed  to hire for my building crew.


Immigration and Naturalization are checking the green-card  status of most of the people who want to work.  The trades unions say I can't use my sons. They insist I have to hire only Union workers with Ark-building experience.


To make matters worse, the IRS seized all my assets, claiming I'm trying to leave the country illegally with endangered species.


So, forgive me, God, but it would take at least 10 years for me to finish this Ark.


Suddenly the skies cleared, the sun began to shine, and a rainbow stretched across the sky.


Noah looked up in wonder and asked,  "You mean you're not going to destroy the world?'



'No,'   said God.

'The government beat me to it.

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I hope you enjoyed . Please, don't get me wrong I love what our government has been doing lately. Especially, the housing stimulus package. However, what is more American than making fun of it. - james wexler

I am starting to see a lot of analysts, industry insiders and mortgage brokers discuss

Alt-A as the new Sub-prime.

Earlier today,

Freddie Mac posted a financial loss that was more than 3X larger than expected.

Note, that the losses were concentrated in Arizona, California, Florida and Nevada.

The news was especially disturbing for real estate and the economy as mortgage delinquinces spread past the sub-prime category into borrowers with good credit into what are called Alt-A mortgages.  

Freddie Mac Chief Financial Officer Buddy Piszel told The Associated Press that the credit problems are emerging mostly in the company's Alt-A portfolio,

(Alt-A lonas) contain mortgages with high risk factors like undocumented borrower income or no down payments

Alt-A mortgages typically

• Reduced borrower income and asset documentation (for example, "stated income", "stated assets", "no income verification")
• Borrower debt to income ratios above what Fannie or Freddie will allow for the borrower credit, assets and type of property being financed
• Loan to value ratios (percentage of the property price being borrowed) above agency limits for the property, occupancy or borrower characteristics involved In this way, 

The big problem with Alt-A mortgages are the lack of proof and confirmation of the claims made on a mortgage application.

These are not poor quality borrowers (like sub-prime). Good borrowers, just not the best. Think "B" student in school.

Now, many of these Alt-A loans, are starting to feel the pressures of a slowing econonmy.

Also, many Alt-A loans are are Adjustable Rate mortgages, are adjusting to higher interest rates.

Homeowners are starting to have trouble either making the payment. Or, are just deciding not to make the payment at all on a depreciated asset.

Wall Street was taken back. However, that was just for the moment. They will be on to something else shortly, if not already.

Maybe I am eternally optimistic.

However, I think that this news is not a surprise to the powers that be.

Last wee, the housing rescue bill gave the Treasury Department gained unlimited power through 2009 to lend money to Freddie and Fannie and/or buy their stock if needed.

The problems existed then as they do today. Fannie Mae, Feddie Mac nd our Government acted with this new "Alt-A' Crisis in mind.

Alt-A will not become the Sub-prime of 2008.

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Copyright © James Wexler, *what happens to your money when a bank fails?*

Contact :Wexzilla : for all your Phoenix | Scottsdale area Real Estate needs

I wanted to share an excellent article about the new TAX CREDIT for home buyers written by

columnist Kenneth Harney (copyright) 

Anybody who's been sitting on the sidelines hesitant to jump into real estate until conditions settle  down should know these dates:

April 9, 2008, through June 30, 2009.

They mark the eligibility time span to qualify for the home-purchase tax credit created by the massive housing bill approved by Congress.

If you have not owned a house during the past three years - or are considering buying your first home - and can go to closing before the end of next June,

you may be eligible for up to a $7,500 credit against your federal taxes for 2008 or 2009 ($3,750 if you file taxes as a single person).

The new credit is expected to benefit hundreds of thousands of buyers, although Congress set no limit on how many people can qualify. Since the specifics of the credit changed during the past month as the Senate and House negotiated a final compromise, here's a quick overview of the credit in its final form.

● The basic idea: To jump-start housing sales and clear out local unsold real estate inventories, Congress is offering tax credits to pull in new purchasers. Buy any house - new, old, any location or condition, any price range within the designated time period - and the IRS will cut up to $7,500 off your tax bill for either this year or next. For example, if you're an eligible buyer of a home this year and you owe the IRS $4,000 on your total 2008 income tax bill, your $7,500 tax credit could wipe out everything you owe plus get you a $3,500 refund. The new-home-purchase tax credit is what the government calls "refundable": If your tax bill is less than the credit amount, you get the difference back from the Treasury.

● Eligibility rules: Do you own a home now? If so, you're not eligible for the credit. Did you sell your home more three years ago and now rent? You are eligible. The same is true if you've never owned a home before. Close on a house before next June 30, and you can claim a credit of up to 10 percent of the purchase price of the property up to a maximum of $7,500. If your adjusted gross income exceeds $150,000 ($75,000 for singles), the credit maximum begins to phase down in increments. You cannot claim the credit if you are a non-resident alien, financed the property using a state or local housing-agency tax-exempt-bond mortgage, or do not plan to use the house as your principal residence. Purchasers in the District of Columbia using the city's first-time buyer credit program cannot double-dip and use the new federal credit as well.

● Payback: Unlike some past tax-credit programs, this one requires beneficiaries to repay the credit over an extended period of years. Starting in the second tax year after purchase and continuing for up to 15 years, taxpayers are expected to make pro-rata repayments to the government on their federal filings. Over a 15-year payback period for the full $7,500 credit, the cost would be $500 a year. If you sell the house before the end of the repayment period, and you have no gain on the sale, you won't be expected to pay the credit back from the proceeds. If you have a net gain, the "recapture" cannot exceed the amount of your gain. In other words, the federal government is taking on all or much of the risk that the value of your new house won't increase over time.

At its core, the new tax credit functions very much like an interest-free loan for up to $7,500. You pay the principal back in increments over time, but there's no interest charge to you.

Rob Dietz, an economist for the National Association of Home Builders, says the new credit not only will pull first-time buyers into the market, but also have a powerful "multiplier effect" as thousands of sellers of these credit-assisted houses go out and buy replacement homes for themselves - extending the impact of the credit into the move-up segment.

How do you claim the credit? If you pass the eligibility tests and buy before June 30, you simply request the credit on your tax return for either 2008 or 2009, which will be modified for that purpose. Even if you purchase in 2009, you can take the credit against your 2008 taxes by filing an amended return. The home builders association is launching an educational Web site, www.federalhousing taxcredit.com, with additional information for consumers.

Article by columnist Kenneth Harney (copyright) 

Re-Printed by James Wexler

Congress and the President  approved a broad package of measures,

the Housing Stimulus Package,  that  will help prevent more foreclosures and support and help communities by sending local financial aid for fixing up areas beleaguered by foreclosures.

According to the Associated Press, The Homeowner Rescue Plan, authored by Representative Barney Frank , Democrat from Massachusetts ,

Housing Stimulus Package includes these provisions.

• Give the FHA $300 Billion in new lending authority and relax its standards to provide more affordable loans
• Modernize the FHA and allow it to back loans for riskier borrowers
• Increase the size the loans the FHA can insure
• Tighten-Regulation on Fannie Mae and Freddie-Mac while raising the loan limit amounts they can buy and sell
• Provide low-income housing tax breaks
• Provide a tax credit of up to $7,500 to first-time home buyers to be paid back over 15 years
• Give states $10 Billion in tax-free municipal bonds for low-interest loans to first time home buyers and re-finance of sub-prime mortgages
• Provide safe harbor from lawsuits from lenders against mortgage holders who modify loans to borrowers
• $210 million dedicated to pre-foreclosure counseling
• $15 Billion in loans and grants to states for buying foreclosure properties

foremost, I think this is a excellent effort by our law makers to move as quickly as possible to take necessary steps to help add some stability to a reeling housing market; especially, addressing the foreclosure problem so evident in Metro Phoenix, Scottsdale.

it is an election year; both parties have big stakes to deliver aid to an ailing housing market and economy.

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Copyright © 2008 By James Wexler, *Will Bush Veto - Homeowner Rescue Plan ?*

I have been standing on my soapbox yelling at the top of my voice about what I think is too broad a flat ban on down payment assistance programs (DPA) by the new housing stimulus package.

I think someone heard the many voices of those who complained aloud: 

2 members of Congress introduced a new bill to revise this ban on Down payment assistance.

The pending draft would change, revise and regulate who would qualify under programs like Ameridream; not outlaw and ban charitable down payment assistance completely.

The Bill To revise the requirements for seller-financed down payments for

"mortgages for single-family housing insured by the Secretary of Housing and Urban Development under title II of the National Housing Act and to authorize
risk-based insurance premiums for certain mortgagors under such mortgages."

 The type of mortgage that would be approved would have more strict requirements which I suggest you read the amendment to revise seller -financed down payments

as proposed would require (amongst other things)

i) A mortgage under which the mortgagor has a credit score equivalent to a FICO score of 680 or greater.

Many who can benefit from these DPA programs, like Ameridream, should not be denied to purchase a home if the other levels of underwriting are met.

In my opinion this ban is another form of profiling and/or blockbusting; a violation of American Civil liberties.

Call your Congressman or visit www.supporthomeownership.com .

Let your voice be heard.

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Copyright © James Wexler, *Ameridream Responds to Ban on down payment assistance Programs *

Last week, the Housing Rescue Bill and the Federal Legislators answered the question

Are Down Payment Assistance Programs Cash Back Fraud??

The new law banned all Seller assisted down payment programs  (DPA's) effective October 1st, 2008

Ameridream the leader in Down payment assistance programs responded to the ban Two weeks, ago , I wrote the following article on my blog Wexzilla.com asking the question i

"Eliminating charitable down payment assistance will slam the door on over 100,000 teachers, firefighters, working families and others who rely on these programs annually to become homeowners. "

"We will continue to fight on behalf of low and moderate income families to preserve charitable down payment assistance and to help them achieve the American dream of home-ownership."

"In the interim, supporters of down payment assistance should still make their voices heard by visiting www.supporthomeownership.com and telling HUD and Congress to regulate - not eliminate - down payment assistance."

Apparently, your voices were heard.

2 California congressman have drafted a piece of legislation amending the broad ban on DPA programs.

The general idea would be more strict underwriting requirements for those participating in charitable assisted down payments.

I am reading the full draft and will have some further details and my (humble) opinion later today.

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Copyright © James Wexler,  *Ameridream Responds to Ban on down payment assistance Programs*