Metro Phoenix Homes, Market Trends, MLS Listings

Phoenix Real Estate - Short Sales or Roulette

Ron and Kristina Wilczek — Sat, 20 Mar 2010 16:56:00 GMT

I constantly get buyer clients asking me about the pros and cons of short sales. In fact, I've received so many questions I created a short sale page on my website and I refer clients to that page. I'm sure I'm not the only realtor who has done that in this market.

I'll tell you that I've had my share of successful short sales, both on the selling and buying side. I've also had my share of short sales that have blown up because 1.) a HELOC demanded a promissory note and the seller refused to sign it OR 2.) a bank wouldn't let go of an unreasonably high BPO. [Side note: If the realtor who did the BPO for my short sale on Desert Cove Rd in Glendale is reading this -- your BPO WAS too high and the house sold for $10,000 less as a REO] Since I have a fairly analytical mind (which can be a curse in a marriage) I decided to see if I could figure out the statistical probabilities of a short sale closing escrow.

My bachelor's degree is in business administration and I did well in quantitative analysis. However, I did not want to create a thesis. I was just seeking a simple way to convey the success rate of short sales to my clients. Here's what I came up with: divide the number of closed short sales in one month by the combined total of the closed short sales plus the canceled short sales. Expressed mathematically:

closed short sales / (closed short sales + cancelled short sales) = % of success

I used only canceled short sales and not those that "expired" or were "temporarily off market." I reasoned that expired short sales could simply be re-listed, were generally caused because the listing realtor lost track of time, and that most of them received an extension. I did not count those that were "temporarily off market" because they would probably end up as either closed or canceled.

Here's my conclusion based on 12 months of statistics from the Arizona Regional Multiple Listing Service: There is a slightly better chance closing a short sale than winning at a roulette table. Remember that roulette has a 50% chance of winning if you play either "odd/even" or "red/black."

The 12 month chart shown below illustrates that an average of 53.7% of short sales close. Read the chart in this manner: "4,150 foreclosures sales (bank owned and short sales combined) occurred in February 2010. 1,438 of those sales were short sales. 1,167 short sales were canceled in February 2010. Therefore, 55.2% of short sales were successfully closed in February 2010." You will also note that the success of short sales has been greater in the last six months than in the first six months of the period.

I can already hear all of the short sale experts across America claiming a much higher success rate. I have a higher success rate too. However, I present these numbers for your information or your humor -- whichever you prefer. Actually, I kind of like the roulette analogy and have already used it twice today. Next time a client asks you if they should consider buying short sales say to them "red or black?"

Selling Your Home

Home Buyers, Mortgage, Inspectors, Credit

Phoenix Foreclosures - March 2010

Phoenix Foreclosures -- sales up in February 2010

Ron and Kristina Wilczek — Wed, 17 Mar 2010 18:12:00 GMT

Phoenix Foreclosures -- sales up in February 2010.

February had only had 28 days but residential sales were up 10% for short sales and bank owned homes and 14% overall in Metro Phoenix. Foreclosures continue to dominate in Metro Phoenix. Real estate residential sales increased from 5,812 in January to 6,613 home sales in February 2010. The reason continues to be last minute shopping for the tax credit fueled by low interest rates. This trend should continue throughout the next few months.

Read the chart in this manner: 6,613 homes sold in February in Metro Phoenix . Real estate defined as "normal" sales (not bank owned property or short sales) accounted for 2,463 sales, or 37.2% of the total. 4,150 sales were foreclosure related which comprised 62.8% of the total.

Year over year sales, commonly known as YOY (a common industry comparison standard), have been up for 21 consecutive months (not completely shown by the chart ). YOY essentially compares the sales in February 2010 to the sales in February 2009, the sales in January 2010 to the sales in January 2009, and so on. In other words, Phoenix real estate sales have consistently been improved from the previous year.

Phoenix foreclosures (bank owned or REO property and shorts sales) officially accounted for over 1/2 all sales in the Phoenix real estate market beginning in October 2008. They have surged as high as 75.9% but have yet to drop below the 50% mark. I have statistics that go back to June 2007. Contact me for more information.

My next post will evaluate the number of Phoenix foreclosure sales and their makeup in terms of how many were lender owned properties and how many were short sales.

Sell your home in Tempe Arizona

Arizona Relocation

Investing in Phoenix real estate

Homeowner Rights, Foreclosure Eviction Laws, and Forcible Detainers

Phoenix Foreclosures

December 2009 Housing - Phoenix Foreclosures

Ron and Kristina Wilczek — Wed, 27 Jan 2010 05:55:00 GMT

December 2009 Housing - Phoenix Foreclosures

Here is another in a series of reports for Phoenix Foreclosures. Results for December 2009 indicated an increase in the number of homes that sold for under $100,000. December 2009 is the first month in which there was any significant increase in this statistical category.

Looking at the total number of homes that sold for under $100,000 is one way to look at Metro Phoenix Foreclosure sales. Market information is revealed in the following chart and is read in this manner: "There were 7,670 homes sold in metropolitan Phoenix during the month of December 2009. 2,811 (or 36.6%) of all these sales were under $100,000. 2,249 of those homes (80% of the total) were Metro Phoenix foreclosure sales."I define Phoenix foreclosures as both bank owned homes and short sales.

As indicated by the color yellow, this number had been on a decline since a peak of 3,866 homes in May 2009. At that time 90% of all homes that sold for under $100,000 were foreclosure-type sales in the Phoenix area(indicated in orange).

A primary reason for the June through November decline has been the gradual increase of home prices in the Phoenix area. Our Phoenix market tracker has indicated the increase began in April 2009 when the average price in the entire metropolitan area was approximately $84.00 per square foot. Price per square foot in December 2009 was approximately $91.00.

Phoenix Real Estate and Homes for Sale

Phoenix housing market

DMOZ Directory

FHA Guidelines change - 1 year waiver of Flipping Rule

Ron and Kristina Wilczek — Sun, 17 Jan 2010 02:22:00 GMT

FHA Guidelines change - 1 year waiver of Flipping Rule

An announcement from HUD on waiving the FHA guidelines for flipping:

"In an effort to stabilize home values and improve conditions in communities where foreclosure activity is high, HUD Secretary Shaun Donovan today announced a temporary policy change in FHA guidelines that will expand access to FHA mortgage insurance and allow for the quick resale of foreclosed properties. The announcement is part of the Obama administration commitment to addressing foreclosure."

The waiver will take effect on February 1, 2010 and is effective for one year, unless otherwise extended or withdrawn by the FHA Commissioner. To protect FHA borrowers against predatory practices of “flipping” where properties are quickly resold at inflated prices to unsuspecting borrowers, this waiver is limited to those sales meeting the following general conditions:

All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction
In cases in which the sales price of the property is 20 percent or more above the seller’s acquisition cost, the waiver will only apply if the lender meets specific conditions.
The waiver is limited to forward mortgages, and does not apply to the Home Equity Conversion Mortgage (HECM) for purchase program.

Download the HUD and FHA guidelines for Flipping Waiver

Investing in real estate, Phoenix, Scottsdale, Tempe

Down Payment on House Gift |Tax Free Way from IRA

Ron and Kristina Wilczek — Sun, 17 Jan 2010 02:14:00 GMT

Down Payment on House Gift |Tax Free Way from IRA

Looking for a way to get a down payment gift from a relative? Did you know your parents could take money from their IRA to give you a down payment gift -- and not face any tax penalties?

Many people are buying Phoenix foreclosures for owner occupied homes and using FHA financing because it allows the least amount of money down from the buyer. One of the nicest features about using FHA financing is that it allows gift funds to be given from a relative to the buyer.

So let’s say that you were buying a 100,000 home and you needed the required 3.5% or $3,500 dollars of down payment to qualify -- but you only have $1,000 in your bank account. A relative (and in some cases a non relative) can gift you the money with a statement stating that no repayment is required (called a gift letter) along with some other simple documentation. Then the gift funds can be counted as YOUR funds.

This might save you up to several months/years of saving money to make it to the $3,500 down-payment mark.

One thing many people don’t know is that the IRS allows a parent to pull money out of their IRA “WITHOUT” penalty or taxation in order to gift those funds to a family member’s home. Most people know you can take money out of your IRA for your own home. But many do not know that you can take money out of your account for the use of a parent's, child’s or grandchild’s home -- even if you will not live in that home!

See how nice the government is to NOT tax you on something.

See the IRS publication attached and see for yourself.

Click here Down Payment on House Gift |Tax Free Way from IRA

Phoenix real estate

Phoenix homes for sale

Phoenix foreclosures exceed 41% of active listings-January 2010

Ron and Kristina Wilczek — Sat, 02 Jan 2010 02:12:00 GMT

Active Phoenix foreclosures exceeded 41% of all homes for sale to begin January 2010. This information is seen in the orange color on the first chart. I've defined Phoenix foreclosures as both bank owned property and real estate short sales, though;short sales are typically considered to be "pre-foreclosure." This is the first time since April 2009 the percentage has exceeded 40%, as the months of May through December 2009 averaged 38%.

The primary reason for the higher percentage is the increase in bank owned properties, as indicated in blue on the second chart. 5,380 bank owned Phoenix foreclosures mark the highest level since May 2009. Is this the beginning of more bank owned properties on the market? It does appear so, as the second chart indicates a four month increase. 2010 marks the year that many of the 5/1 adjustable rate mortgages will have rate increases and many interest only loans will revert to principle and interest loans. Expect Phoenix foreclosures to increase during 2010, but the effect will not be as devastating as was felt in 2007 and 2008 with the 3/1 ARMS. Having said that, the state of the economy in 2010 will probably have a greater effect than adjustable rate mortgages if unemployment continues on its current course.

Another statistic not shown by these charts is the number of days listings are currently on the market. The normal listings (not Phoenix foreclosures) on the market have been there for an average of 183 days. Phoenix foreclosures have been on the market for average of 106 days. The latter number would be smaller if not for the extended sale time of short sales.

The second chart indicates 5,380 bank owned properties (38.9% of all Phoenix foreclosures in red) and 8,445 short sales (61.1% of all Phoenix foreclosures in green). Watch for further increases in 2010 for both categories of Phoenix foreclosures.

Arizona Mortgage Lender

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Phoenix real estate listings - 7 months of stability - January 2010

Ron and Kristina Wilczek — Fri, 01 Jan 2010 22:58:00 GMT

Phoenix real estate listings - 7 months of stability - January 2010

The number of listings on the Phoenix real estate market has remained relatively stable over the last 7months. The chart indicates 33,278 active listings on the Phoenix real estate market to begin January 2010, just 319 less than during the beginning of December 2009.

Active listings reached their peak near the middle / end of 2008. The decline began in early 2009, reaching a low point in September with 30,995 active listings on the Phoenix real estate market. The period of relative stability began in July, and the 7 month average since July has equaled approximately 32,000 active listings.

The decrease in listings was due primarily to 2 factors: the moratorium on foreclosures and the number of "normal" sellers that canceled their listings or chose not to put their home on the market.

Here is a snapshot of active listings in some of the more popular cities around the Phoenix real estate market.

City	Active Listings	% of Total
Phoenix	5,485	16.5
Scottsdale	2,473	7.4
Mesa	2,275	6.8
Gilbert	1,323	4.0
Chandler	1,149	3.5
Glendale	1,046	3.1
Queen Creek	733	2.2
Maricopa	585	1.8
Tempe	571	1.7
Ahwatukee	427	1.3

These 10 cities are some of the more popular and well known within the Phoenix real estate market.

Tempe, Scottsdale, Mesa, Glendale, Chandler, Gilbert

Phoenix real estate housing market, tracker

Phoenix foreclosures sales % drops to 12 month low in November 2009

Ron and Kristina Wilczek — Tue, 22 Dec 2009 06:39:00 GMT

The Phoenix foreclosures "sales %" dropped to a 12 month low in November 2009. 60.2% of all residential sales were foreclosure type sales. Phoenix foreclosures are defined as bank owned (REO, or real estate owned) properties and short sales.

That chart indicates that 7,586 residential properties were sold in the Phoenix real estate market in November 2009. 3,018 (or 39.8%) were normal sales while 4,568 (60.2%) were Phoenix foreclosures. The last time the percentage was near 60% was last December 2008. The peak in the sale of Phoenix foreclosures was 75.9% in March 2009. They have continued on a slow and consistent decline since that time.

Although the actual number of sales for Phoenix foreclosures follows the same basic trend as the %, the highest number of foreclosure sales was in May 2009. The number of foreclosure sales has decreased for two primary reasons: 1.) there are less foreclosures for sale and 2.) the price gap between normal sales and Phoenix foreclosures has shrunk, making normal sales more attractive than they have been in a long time.

Here's a look at how several cities in the Phoenix real estate market compared to the 60.2% average for all Phoenix foreclosures :

Maricopa - 69.8%
Glendale - 64.4%
Phoenix - 63.6%
Nov 09 - 60.2%
Mesa - 59.7%
Queen Creek - 57.8%
Gilbert - 52.7%
Chandler - 52.2%
Scottsdale - 47.9%
Tempe - 41.1%
Ahwatukee - 39.5%

More Phoenix Foreclosures

Selling Your Home

Phoenix real estate market closes 7,586 sales in November 2009

Ron and Kristina Wilczek — Tue, 22 Dec 2009 04:18:00 GMT

Phoenix real estate market closes 7,586 sales in November 2009

The 7,586 residential sales recorded in November 2009 are 559 sales less than those recorded in October 2009. This reduction in sales is considered both normal and cyclical in the Phoenix real estate market. Sales peaked in June 2009 when 9,358 home sales were recorded.

The chart indicates a steady increase in home sales beginning in February and lasting until the peak in June. The steady decrease began in July and continues to date. Although not indicated on the chart, the year over year (YOY) sales in the Phoenix real estate market have now increased for two consecutive years. Sales in October 2007 were 3, 421 and sales in October 2008 were 5,267.

The Town of Maricopa was the only municipality in the Phoenix real estate market that was contrary to the decline in home sales. The Town of Maricopa experienced a slight increase in sales from 224 home sales in October to 235 homes sales and November 2009, a 5% increase.

Around the Phoenix real estate market, Scottsdale was the only other city with home sales consistent with October 2009. Scottsdale experienced a decrease of just under 2%.

I've been on other projects and slow to update these reports. Merry Christmas to all!

More about the Phoenix real estate market

Arizona Relocation

Residential Listings Increase in Phoenix Real Estate Market -- December 2009

Ron and Kristina Wilczek — Fri, 04 Dec 2009 00:49:00 GMT

Residential listings increased for the third consecutive month in the Phoenix Real Estate Market to begin December 2009. That translates into more homes for sale.

The increase in homes for sale began in October 1st, 2009 and has continued for the last three months (in pink). The 3-month total increase in the number of homes for sale is 1,482 -- or 4.8% from October 1, 2009 -- from when the Phoenix real estate market was at two-year low in the number of residential homes for sale.

The demand for homes in the Phoenix real estate market has been particularly strong in 2009. The demand is due in part to the low prices of foreclosure homes for sale, low interest rates, and the home buyer tax credit. According to CromfordReport.com (who does extensive reporting on the Phoenix real estate market and homes for sale):

The big news in our pending home sales situation is the dramatic contrast with the national picture. The NAR today released the news that pending listings for home sales were 19.8% higher than a year ago. For Greater Phoenix real estate the equivalent increase is currently 102%. In fact a few days ago on October 30 we set an all time record of 107%. Demand is clearly at an exceptional level for real estate.

The increase in the number of homes for sale is a normal seasonal pattern in the Phoenix real estate market and does not indicate a significant change. If normal annual trends continue, the active listing count will peak in November and then decline toward the end of the year. I will post about November real estate sales in the next few days.

Phoenix real estate

Phoenix housing market

2009 to be 3rd best year in last decade for Phoenix homes for sale

Ron and Kristina Wilczek — Fri, 13 Nov 2009 04:22:00 GMT

2009 is in position to be the 3rd best year in last decade for Phoenix homes for sale. The housing market forecast in the Phoenix area is looking very promising going into 2010. As of November 12, over 79,500 residential home sales have been completed in the metropolitan Phoenix area. Homes sales should easily reach 90,000 by the end of December. The only years that were better were the boom years of 2004 and 2005.

Housing sales in 2007 and 2008 averaged 56,754 residential homes. 2009 home sales will be an estimated 58% higher than in the two previous years. We can clearly signal the end of the buyer's market in the Phoenix area.

There were plenty of doomsayers to begin this year. The Phoenix housing market forecast was uncertain and many home buyers debated what to do. Continuing lower prices and the first-time home buyers tax credit helped people to a decision. It was also very helpful that mortgage interest rates stayed very low.

Search Phoenix area homes for sale

Phoenix Area Home Sales Increase Slightly in October 2009

Ron and Kristina Wilczek — Fri, 13 Nov 2009 03:56:00 GMT

Phoenix Area Home Sales Increase Slightly in October 2009

The increase was slight, but October 2009 home sales in Phoenix surpassed those of September by about 200 sales. These numbers continue to be evidence of confidence from buyers looking for homes in the Phoenix area.
The confidence can be attributed lower housing prices and the first-time home buyers credit. It also helps that the number of active listings in Phoenix has remained stable thereby keeping the balance between a "buyers" and "sellers" market in check.

This is great news for the housing market in Phoenix. Increased sales always stimulates the overall economy. People who have "gotten off the fence" and contributed to Phoenix home sales are making this the 3rd best sales year in the last decade.

As seen in the charts, 8,145 homes sold in October of 2009. Only four months had higher sales in the Phoenix area. It is also important to note that in the previous two years home sales were already tapering off by October. However, Phoenix area sales over the last three months have been stable.

if you are comfortable with housing prices, president Obama's policies, and interest rates -- this may be your time to consider homes for sale in the Phoenix area.

$8000 / $6500 Home Buyer Tax Credit is alive and well

Ron and Kristina Wilczek — Mon, 09 Nov 2009 20:34:00 GMT

The $8000 / $6500 Home Buyer Tax Credit is alive and well. As anticipated, President Obama signed the $8,000 first-time home buyer tax credit extension into law on Friday. You can now collect the credit if your home purchase is under contract by April 30, 2010 and is complete by June 30, 2010. The good news for current owners: The extension also offers a tax credit for people who are purchasing a new residence, but aren't first-time homeowners.

Tax Credit is Refundable

A refundable credit means that if the amount of income taxes you owe is less than the credit amount you qualify for, the government will send you a check for the difference.

For example:

A first-time home buyer who qualifies for the full $8,000 credit who owes $4,000 in federal income taxes would pay nothing to the IRS and receive a $4,000 payment from the government
A first-time home buyer who was to receive a $3,000 refund would receive $11,000 ($3,000 plus the $8,000 first-time homebuyer tax credit)
A repeat buyer who owes $4,000 would pay nothing to the IRS and receive $2,500 back from the government
A repeat buyer who was due to get a $2,000 refund would get $8,500 ($2,000 plus the $6,500 repeat buyer tax credit)

All qualified homebuyers can take the tax credit on their 2009 or 2010 income tax return.

Payback Provisions

The tax credit is a true credit. It does not have to be repaid unless the home owner sells or stops using the home as their principal residence within three years after the purchase.

Summary Details of TAX CREDIT:

Under contract by April 30, 2010
Close escrow by June 30, 2010
$8,000 for 1st time buyers
$6,500 for current homeowners who have lived in their house 5 of the past 8 years
$125,000 individual income limit
$225,000 joint income limit

History of the $8,000 tax credit
Detailed Tax Credit Explanation
IRS Rules about the $8,000
Calculating the Tax Credit
Put the $8,000 tax credit on line 69 of this form

Frequently asked questions about the home buyers tax credit

Selecting the Best Arizona Mortgage Company

Ron and Kristina Wilczek — Thu, 05 Nov 2009 18:10:00 GMT

Selecting the Best Arizona Mortgage Company

How to do it right:

Use these questions to determine the expertise of Arizona Mortgage Lenders. The largest financial transaction of your life is too important to risk with someone or a company who is not capable of advising you properly on the best options for your specific mortgage loan situation. But how can you tell?

Here are four simple questions your Arizona Mortgage Company absolutely must be able to answer correctly. If they do not know the answers, run -- don't walk -- to a lender who does.

What are interest rates based on?
The only correct answer is Mortgage Backed Securities or Mortgage Bonds, NOT the 10-year Treasury Note. The 10-year Treasury Note sometimes trends in the same direction as Mortgage Bonds. It can also move in completely opposite directions. DO NOT work with Arizona lenders who have their eyes on the wrong indicators.
What is the next Economic Report or event that could cause interest rate movement?
Professional lenders will have this information at their fingertips. Ask about a current calendar of weekly economic reports and events that may cause rates to fluctuate.
When Bernacke (formerly Greenspan) and the Fed “change rates”, what does this mean...
...and what impact does this have on home loan interest rates? The answer may surprise you. When the Fed makes a move, they are changing a rate called the “Fed Funds Rate”. This is a very short-term rate that impacts credit cards, credit lines, auto loans and the like. Interest rates most often will actually move in the opposite direction as the Fed change, due to the dynamics within the financial markets. For more information and an explanation on how this affects your lending situation, just give us a call.
What is happening in the market today and what do you see in the near future?
If a lender cannot explain how Mortgage Bonds and interest rates are moving at the present time, as well as
what is coming up in the near future, you are likely NOT talking to a professional lender or lending company. Be smart... ask questions… get answers!

This is one of the largest and most important financial transactions you will ever make. You may take this voyage only two - five times your entire life. Professional mortgage lenders cruise these waters every single day. It’s your home and your future in Arizona. Place them in the hands of a professional loan officer and Arizona Mortgage Company.

Thanks to my good friend and trusted lender, Craig Bohall, for helping to put these words onto virtual paper.

Understanding the Mortgage Loan Process

Help with Phoenix Homes for Sale and the Mortgage Lending Processs

Phoenix foreclosures snapshot to begin November 2009

Ron and Kristina Wilczek — Wed, 04 Nov 2009 20:04:00 GMT

Phoenix Foreclosures Snapshot - November 2009

Phoenix foreclosures comprise 30.8% of all real estate listings in the metropolitan area. Foreclosure listings are comprised of REO property (bank owned) and short sales. REO property used to be the majority of active listings in the foreclosure arena. However, bank owned properties have been on a decline for most of 2009. They are being replaced by short sales because more distressed homeowners are seeing short sales as a better alternative to foreclosure.

The chart indicates 12,539 foreclosure listings in the Phoenix real estate market to begin November 2009. Since there are 32,351 total listings in the Phoenix market (seen in my last post), foreclosure listings make up almost 39% of all listings in the area. Of that 39%, 35.2% (4,417) are REO listings and 64.8% (8,122) are short sales. There are several reasons for the decline in REO property listings over the last year:

the federally mandated foreclosure moratorium
banks for selling more properties in bulk to large-scale investors
banks are taking chunks of foreclosure properties and turning them into rentals
more properties are being sold at public-type auctions

Homeowners are increasingly seeing short sales as a viable alternative to foreclosure. Although the short sale process can take between three and five months to complete, buyers in the Phoenix area real estate market are paying much more attention to short sales. The percentage of completed short sale transactions continues to grow each month in the Phoenix area.

Days on Market for Phoenix Foreclosures

Foreclosure listings have been on the market for an average of 80 days less than their counterparts -- "normal" listings -- during 2009. The second chart indicates that current foreclosure-type listings have been on the market for 105 days, while normal listings have been on the market for 182 days. The obvious reason is the difference in price between two categories of listings. REO property and short sales are always priced much lower than normal sales making them much more attractive to home buyers.

It can also be seen by the chart that overall days on the market has been steadily trending downwards for Phoenix area foreclosures. However, if we were to isolate REO properties we would find that the average sold home would be on the market for less than 60 days. The longer selling cycle for short sales is what keeps the foreclosure "days on the market" higher.

Short sale your home

Homes for sale in Phoenix increase slightly to begin November 2009

Ron and Kristina Wilczek — Wed, 04 Nov 2009 16:24:00 GMT

Homes for sale in Phoenix increase slightly to begin November 2009

MLS listings in the Phoenix area were up slightly for the second consecutive month to begin November 2009 (highlighted in orange). This is a contrast to the previous nine months when active homes on the market dropped a whopping 23,500 properties from 54,538 in December 2008 to 30,995 in September 2009 (highlighted in yellow). There are currently 32,351 active residential listings in the Phoenix area real estate market. This includes both "normal" and foreclosure homes for sale.

This slight increase in homes for sale will do little to impact the demand in our current real estate market, especially for foreclosures. The Phoenix real estate market has averaged about 8,700 home sales in the six-month period from April through September 2009. Phoenix home sales for October are expected to be right around 8,300 properties. Much of this demand in Phoenix is due to affordable home pricing and the $8,000 tax credit. The $8,000 tax credit is currently set to expire at the end of this month, but the federal government is evaluating extending it into 2010.

Phoenix Area Foreclosures

The number of Metro Phoenix foreclosures increased to begin November 2009. The total increase was about 550 homes. This includes both real estate short sales and REO property (bank owned homes). Look for the number of foreclosures to increase further as short sales continue to be increasingly popular and banks have inventory they have yet to release. The chart indicates approximately 38% of all active homes for sale over the last six months have consisted of foreclosure-properties (highlighted in blue).

My next post will look deeper into the foreclosure market and compare the number of short sales versus the number of bank owned properties currently for sale in the Phoenix real estate market.

Learn about the short sale process

Maricopa homes for sale in Tortosa - 2787 sq ft Short Sale

Ron and Kristina Wilczek — Tue, 03 Nov 2009 02:32:00 GMT

Welcome to another in a series of video tours brought to you by ValleyWideHomes.com and Metro Phoenix Homes LLC. Today's tour focuses on Maricopa Homes for Sale and brings us to the subdivision of Tortosa in the Town of Maricopa. Maricopa is approximately 30 miles south of Phoenix Sky Harbor Airport, but only 20 miles south of the Phoenix Township of Ahwatukee, Arizona.

Maricopa rapidly changed from a rich agricultural area to vibrant and exciting new city with master planned communities. On average, there were just under 700 active homes for sale in Maricopa during each month of 2009. Maricopa calls itself "a city with something for everyone and opportunities for all where a handshake is still honored, community involvement is welcomed, and a small town feel is ever present."

The subdivision of Tortosa is heralded by a dramatic entryway as well as several common areas with large and expansive views. Today we will be visiting a home for sale in the subdivision of Tortosa that first became available in November of 2009.

Built by Shea Homes in 2006, this home sits on an a corner lot that's just over one quarter acre. If you're interested in more information about this Maricopa home for sale -- contact information will be provided at the end of the video as well as in this blog. This house has 2,787 square feet with three bedrooms three full bathrooms a living room, family room, a three-way fireplace, dining room and a two-car garage. But there's MORE. Watch the video and learn about the three bonus rooms. Let's have a look at this Maricopa home for sale in Tortosa...

Video Tour of Home in Tortosa

Learn about the Real Estate Short Sale Process

"How can I improve my credit score fast"- a common question | mortgage series Part 5

Ron and Kristina Wilczek — Wed, 28 Oct 2009 18:37:00 GMT

"How can I improve my credit score fast?" -- Arizona mortgage company helps provide an answer

This is part five of a five-part series on the mortgage lending process. In the first 4 parts of this series Arizona loan officer Craig A. Bohall took us on a journey that began with an introduction to the mortgage process, followed by "thinking like an underwriter" to get your loan approved, the "4 C's" of mortgage lending (with a 5th "bonus C"), the important " when do I lock my interest rate," and finally In part 5 Craig will talk about what's on many people's minds: "how can I improve my credit score fast?"

Credit repair is not something that can be accomplished overnight. If you are applying for a loan from an Arizona mortgage company there are certain things you should understand. Craig will take you on a video tour and provide tips on improving your credit to help you get a mortgage loan.

Credit repair will help you in the mortgage lending process. Credit is made up of five primary categories:

payment history
amounts owed
blanks of credit
new versus old credit
types of credit

This video will help you start the process of repairing your credit that you can purchase a home.

How can I Improve My Credit Score Fast VIDEO

An introduction from the first video in the series:

My primary lender, Craig Bohall with Academy Mortgage, and I decided it was time to produce a series on the mortgage lending process. There are many mortgage companies and lenders on the scene, and it's important for buyers (especially first-time buyers) to understand the lending process.

We used Craig's lending experience and my video camera / production knowledge to produce a five-part series on the lending process. Craig has been involved in the real estate industry for 15 years, but he specifically has been a loan officer for the past eight years. Craig has worked for several Arizona mortgage companies and has found a home at Academy Mortgage. I would highly recommend Craig if you are looking for a real estate loan in the state of Arizona. Picking the wrong mortgage company can cause a lot of grief.

Still wondering "how can I improve my credit score fast?"

Part 4 of the series

Entire Series

Get a Mortgage Loan Approved

$8,000 Tax Credit Fraud Under IRS Scrutiny

Ron and Kristina Wilczek — Tue, 27 Oct 2009 06:54:00 GMT

$8000 Tax Credit Fraud under IRS Scrutiny

According to the Wall Street Journal, the IRS is reportedly examining more than 100,000 suspicious claims for the $8000 dollar tax credit and is investigating 167 "criminal schemes" involving the credit. IRS officials declined last week to describe the suspected schemes or provide additional details. However, they did say they have identified the different types of potential fraud and matched them against their compliance program.

We could speculate about how people are trying to commit fraud with the $8000 tax credit. Perhaps they are modifying closing statements, commonly known as HUD-1's to make it appear the house was purchased in the correct tax year. Perhaps they are taking incorrect tax advice from their accountants. Perhaps people are modifying HUD-1's to make it appear that they bought a house -- when in fact they did not. Regardless, the IRS taking it very seriously.

The IRS says it has received more than one million claims for the $8000 tax credit. Housing industry experts estimate the credit helped to generate at least 350,000 additional home sales. The $8000 tax credit to set to expire on November 30, 2009 but leaders in the housing industry are lobbying Congress to extend it.

It would seem that widespread abuse would be relatively easy because of the loose standards for claiming the credit. In other words, the IRS never set anything in place with title and escrow companies to document the tax credit at time of sale. Free money has had a history of attracting people with dishonest intent, and $8,000 is a good deal of money. This is just the kind of trouble that will delay or eliminate the proposed extension of the program, or even it's conversion to the much talked about "$15,000 tax credit." It's always sad when dishonest people potentially destroy a good program they can benefit the masses.

On the other hand, does our country really need an extension of the $8000 credit, or even a new $15,000 tax credit? Has our country, which already has enough debt to choke 20 medium-sized countries, need to be giving out more money it doesn't have? It does seem that many citizens have developed an attitude of "entitlement" and expect the government to just keep giving out more and more money. But I digress...

According to the IRS website , the IRS successfully prosecuted its first fraudulent tax credit case in July 2009. A Jacksonville, Fla. tax preparer, James Otto Price III, pled guilty to falsely claiming the $8000 tax credit on a client’s federal tax return. Price faces the possibility of up to three years in jail, a fine of as much as $250,000, or both.

A quote from the IRS's website:

“We will vigorously pursue anyone who falsely tries to claim this or any other tax credit or deduction,” said Eileen Mayer, Chief, IRS Criminal Investigation. “The penalties for tax fraud are steep. Taxpayers should be wary of anyone who promises to get them a big refund.

Metro Phoenix homes for sale

Get your mortgage loan approved

Mortgage Lending Process| Arizona Mortgage Loan |Part 4

Ron and Kristina Wilczek — Sun, 25 Oct 2009 04:47:00 GMT

Mortgage Lending Process| Arizona Mortgage Loan

This is part four of a five-part series on the mortgage lending process to educate and inspire potential homebuyers. In the first three parts of this series Arizona mortgage broker (turned banker) Craig A. Bohall took us on a journey that began with an introduction to the mortgage process, followed by "thinking like an underwriter" to get your loan approved, and finally the "4 C's" of mortgage lending (with a 5th "bonus C"). In part 4 Craig will talk about the most important topic to date: when to lock your interest rate on your Arizona mortgage loan.

Do you want to appear like a knowledgeable consumer? What questions should you ask when applying for an Arizona mortgage loan? What questions make you look like a "novice" when speaking to a mortgage broker? Here is a sample of the wrong questions to ask when interviewing a potential mortgage company:

what are the interests rates today?
what kind of interest-rate can your company give me?

Here is the right question to ask:

what are the markets doing today?

Watch this video and learn what your mortgage broker should know about interest rates. Beware of any loan officer in an Arizona mortgage company who is not aware of (or can not talk about) jobless claims, the consumer confidence number, unemployment numbers, or when the Federal Reserve Chairman and Board of Governors are meeting.

Watch this video and learn the basics about the markets and economic indicators that affect interest rates. But don't be concerned -- you don't have to be an expert mortgage broker to get the best interest rates. You simply simply need to find an expert in the mortgage lending process who will guide you through the intricacies of obtaining a mortgage loan and locking your interest rate at the correct time

Watch Mortgage Process Video

An introduction from the first video in the series:

My primary lender, Craig Bohall with Academy Mortgage, and I decided it was time to produce a series on the mortgage lending process. There are many mortgage companies and lenders on the scene, and it's important for buyers (especially first-time buyers) to understand the lending process.

We used Craig's lending experience and my video camera / production knowledge to produce a five-part series on the lending process. Craig has been involved in the real estate industry for 15 years, but he specifically has been a loan officer for the past eight years. Craig has worked for several Arizona mortgage companies and has found a home at Academy Mortgage. I would highly recommend Craig if you are looking for a real estate loan in the state of Arizona. Picking the wrong mortgage company can cause a lot of grief.

Part 3 of the series
Get a Mortgage Loan Approved

Tempe Town House Rental in Broadmor near ASU

Ron and Kristina Wilczek — Sat, 24 Oct 2009 20:46:00 GMT

Tempe Town House Rental in Broadmor near ASU --

Beautiful and spacious 1,760 sq. ft. Tempe town house with 2-car garage is ready to be your next rental. The kitchen in this house is gorgeous and newly remolded with cherry wood cabinets. Town house is an ideal rental bacause it has 3 bedrooms and 2.5 bathrooms.

Tour this Town House Rental

The master bedroom is large with a vaulted ceiling, fireplace, wonderful placement of windows, and a large walk-in closet. This Tempe house rental has a big 2nd bedroom with a large walk-in closet and Jack & Jill bathroom. 3rd bedroom has a balcony.

Ready to move in! All appliances come with this house to include: washer/dryer, range/oven, refrigerator/freezer, and dishwasher. All appliances in this Tempe rental house are in good condition. New carpet upstairs and tile throughout downstairs. Cable and phone wired in all 3 bedrooms and downstairs. This Tempe town house rental overlooks a new pebble-tech pool-just footsteps away.

Centrally located and just minutes from Tempe Town Lake, ASU, shopping, downtown Tempe and Mill Ave. Hurry- this rental will go quickly! Rental available for move in Nov. 1, 2009. $1,350 monthly rental includes all HOA fees, including COX cable. Call Ron Wilczek, designated broker, Metro Phoenix Homes, 480-445-9480 to make this Tempe town house your next rental.





ValleyWideHomes.com Arizona mortgage company Tempe Arizona homes for sale

Arizona Mortgage Company Lending Process | Part 3

Ron and Kristina Wilczek — Fri, 23 Oct 2009 03:53:00 GMT

Arizona Mortgage Company talks about the lending process

This is part three in a five-part series that explains what you should know as a potential homebuyer about obtaining a mortgage loan. In this video you will hear a detailed account of how to successfully obtain a loan in Arizona and pick the right company for you. Part one of this series was an overview of the mortgage lending process and part two provided some insightful comments about how to get your loan approved by "thinking like a mortgage company underwriter."

This video will discuss the four "C's" lenders evaluate when you apply for a mortgage loan in Arizona (and throughout the country). Here's a quick preview of the four C's:

credit - a look into credit and how your payment history comes into play during the mortgage process
capacity - essentially your ability to cover your debt
cash - how much do you have and what the loan underwriter sees when evaluating your finances
collateral - this is essentially the value of the house you want to buy

Don't miss the bonus footage on the "5th C" that you rarely hear about. The 5th "C" can have a dramatic impact on your ability to qualify for a mortgage loan in Arizona. Make sure the Arizona mortgage lenders you interview are aware of how to use these criteria to ensure your best chance at getting a loan and purchasing your dream house.

Watch the Mortgage Process Video

An introduction from the first video in the series:

My primary lender, Craig Bohall with Academy Mortgage, and I decided it was time to produce a series on the mortgage lending process. There are many mortgage companies and lenders on the scene, and it's important for buyers (especially first-time buyers) to understand the lending process.

We used Craig's lending experience and my video camera / production knowledge to produce a five-part series on the lending process. Craig has been involved in the real estate industry for 15 years, but he specifically has been a loan officer for the past eight years. Craig has worked for several Arizona mortgage companies and has found a home at Academy Mortgage. I would highly recommend Craig if you are looking for a real estate loan in the state of Arizona. Picking the wrong mortgage company can cause a lot of grief.

Part 2 of the series
Get a Mortgage Loan Approved

Arizona Mortgage Lenders | Lending Process Part 2

Ron and Kristina Wilczek — Fri, 23 Oct 2009 00:47:00 GMT

Arizona Mortgage Lender talks about the mortgage loan process

This is part two in a five-part series that explains what consumers should know about obtaining a mortgage loan. In this installment you will hear what it takes to get a loan approved from a lender. Do you know one of the best secrets to getting a loan approved? Think like a mortgage company underwriter.

Although your Arizona mortgage lenders are your point of contact, the investor's underwriter has the final say on whether or not your loan will be approved. It's important to know that underwriters get paid to "smell risk." What kinds of risks do the underwriters look for in the mortgage lending process:

The most obvious is probably the borrowers credit; that's the most basic place for any underwriter to start.
What about your job history? Do you change jobs like you change underwear, or are you a stalwart company veteran, or are you somewhere in between?
Hear Craig talk about more important factors that go into the underwriter's approval process.

A good loan officer will make sure your loan application doesn't have the smell of risk in it.

View the Mortgage Company Video

An explanation from the last post:

My primary lender, Craig Bohall with Academy Mortgage, and I decided it was time to produce a series on the mortgage lending process. There are many mortgage companies and lenders on the scene, and it's important for buyers (especially first-time buyers) to understand the lending process.

We used Craig's mortgage lending experience and my video camera / production knowledge to produce a five-part series on the lending process. Craig has been involved in the real estate industry for 15 years, but he specifically has been a loan officer for the past eight years. Craig has worked for several Arizona mortgage companies and has found a home at Academy Mortgage. I would highly recommend Craig if you are looking for a real estate loan in the state of Arizona. Picking the wrong mortgage company can cause a lot of grief.

Part 1 of the series

Get a Mortgage Loan Approved

Arizona Mortgage Company | Loan | Process Part 1

Ron and Kristina Wilczek — Thu, 22 Oct 2009 20:02:00 GMT

Arizona Mortgage Company talks about the mortgage lending process

My primary lender, Craig Bohall with Academy Mortgage, and I decided it was time to produce a series on the mortgage lending process. There are many mortgage companies and lenders on the scene, and it's important for buyers (especially first-time buyers) to understand the mortgage lending process.

This introductory video will give a "birds eye view" of obtaining a mortgage loan, whether it be in Arizona or elsewhere. Many times a buyer doesn't get all the information that he or she requires because they don't know how to ask the right questions. Perhaps the mortgage lender/company assumes the buyer knows certain facts about mortgage lending that the buyer really doesn't even have a clue about. I think that happens in all industries -- the industry professional knows so much about the industry and sometimes assumes it's common knowledge. So we used Craig's mortgage lending experience and my video camera / production knowledge to produce a five-part series on the mortgage process.

Craig has been involved in the real estate industry for 15 years, but he specifically has been a loan officer for the past eight years. Craig has worked for several Arizona mortgage companies and has found a home at Academy Mortgage. I would highly recommend Craig if you are looking for a mortgage loan in the state of Arizona. Picking the wrong mortgage company can cause a lot of grief. In future series Craig explains many topics that are important to the mortgage process.

The Arizona real estate market is volatile enough. The last thing you need is to work with an Arizona mortgage lender that is not experienced and doesn't know how to watch the key indicators when locking a mortgage rate. We hope you enjoy these videos.

Mortgage Video Part 1

Mortgage Loans in Arizona

September 2009 Phoenix home sales keep pace with August 2009 - foreclosures still dominate

Ron and Kristina Wilczek — Fri, 16 Oct 2009 15:13:00 GMT

September 2009 Phoenix home sales keep pace with August 2009 - foreclosures still dominate

Of the almost 31,000 Phoenix homes for sale, 7,942 homes were sold in the metropolitan Phoenix area in September 2009. That's 97 homes less than the total sold in August. A majority were Phoenix foreclosure type properties. 2009 has been a very good year for homes sales in the Valley of the Sun. At current sales levels, I expect to see approximately 90,000 homes sold in the Phoenix area for 2009, making it the third best sales year for housing in the last decade. As of this writing, 72,451 homes have been sold in and around Phoenix. The only two years with more home sales were the “boom” years of 2004 in 2005 -- with 98,100 and 104,000 sales respectively. The next closest year was 2003 with 79,500 sales.

It seems clear that the Phoenix foreclosure market, the $8,000 tax credit, low interest rates, and the overall affordability of Phoenix area homes has done much to stimulate sales. This post is not about whether or not the $8,000 tax credit is spoiling the Americans into a feeling of entitlement. It is simply reporting on the sales trends in the Phoenix area and confirming that local residents have cast a vote of confidence in returning to the home market. Having said that, it must also be noted that some figures indicate that approximately 30% of all Phoenix home sales in 2009 were from investors.

Foreclosures continue to dominate Phoenix area sales

67% of all home sales in the Phoenix area during September 2009 were foreclosures, foreclosures being either REO property (bank owned homes) or real estate short sales. This has been a trend in the Phoenix area for the last year.

October 2008 was recorded as the first month that foreclosure sales exceeded 50% of total sales. Foreclosure sales increased from 51.4% in October to a high of 75.9% in March 2009. The decrease in REO property (bank owned homes) has been a significant factor in the gradual reduction of foreclosure sales beginning in April 2009. My post in the next few days will show that Phoenix foreclosures are increasingly being affected by real estate short sales, a trend barely noticeable 12-18 months ago. Short sales deserve a look if you are considering making a purchase from the inventory of Phoenix homes for sale.

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