To further provide better service to all my long time clients as well as new clients, I have just been certified as an REO Specialist.  What is an REO Specialist?  REO stands for Real Estate Owned properties - owned by lending insititutions.  My certifcation means that I have been trained and tested to understand how the REO system works, can work with lenders and have the knowledge and training to work with buyers in purchasing foreclosed properties.

Whether we like it or not, currently the market is being driven by sales in which owners have run into problems in paying their mortgages and keeping their houses.  My knowledge can help these people as well as helping buyers for these homes.  If I can be of help to you- one way or the other- please contact me.  I am available to help and would look forward to working with you.

Dogs, cats are being left behind by owners to fend for themselves in a vacant home or yard, in a neighborhood or on the street if the house which was their home has been foreclosed or the owners evicted.  Unfortunately, some owners have believed that someone from the Lender or Real Estate company will quickly come to a home and rescue their pet.  The visit to one of these homes may not be quick or soon enough for the pets to survive.  Sometimes they are rescued and saved.  Because of this up close and personal contact with pets in this situation, a group mainly made up of real estate professionals has been inspired to start a rescue group.

Lost Our Home Pet Foundation is a non-profit (501c) rescue group that rescues pets that have been left behind due to foreclosure, financial hardship or other reasons.  Its mission is to rescue, foster, heal, adopt and advocate for dogs or cats who have been abandoned or left behind due to foreclosure or eviction.  To provide options for families to keep their pets.  To be a source for real estate professionals when they encounter a pet in need, while inspiring community action on their behalf.

If possible, the group helps families keep pets.  They provide assistance for food and medical care if an owner has financial hardship.  They provide information regarding pet friendly housing and if necessary, temporary foster homes until an owner can be reunited with their pets.  If pets must be given up or have been abandoned, each pet is brought to a vet for shots, testing and spay/neuter, then placed into a foster home. From there they work with other rescue groups to facilitate the adoption process to get the pet a forever home.

The focus of he group is to concentrate on building a great network of fosters and significant fundraising to cover all medical expenses.  The group wants community involvement and assistance.  You can show your support by attending the "kick-off" fundraising event for the Lost Our Home Pet Foundation on Friday, October 24, 2008.  You are invited to the Pasta, Poker and Pets Party to be held at the DC Ranch Community Center (Homestead) in Scottsdale, Arizona and will include beer, wine and "Mutt"inis, a delicious pasta dinner from Rigatoni's, poker playing and a silent auction.  There is a $50 per person or $85 for two people, donation for attending.  There are also opportunities for sponsors for this event and ohers in the future, if you would like to become more involved.

 For more information go to www.LostOurHome.org or events@LostOurHome.org or call the Info Line at (480) 656-0888.  I look forward to seeing you there.

The media bombard us daily with the numbers of homes which are in mortgage difficulties.  Perhaps, you have wondered if you should get involved in purchasing such a property.  The first thing you should realize is that the answer to that question depends on your patience and how much money you have to invest.

Typically, there are 4 steps involved in the foreclosure process and potentially you could become involved in any one of these steps.  The typical 4 steps are:
1)  Preforeclosure, when the property goes into default and the homeowner is given a 90 day notice to come current on the mortgage, work out a plan with the lender - possible "Short Sale" of the property or there will be a Trustee Sale.
2)  Scheduled Trustee Sale - usually when this happens, due to restrictive rules involved in the sale, an individual could purchase it but the lender usually  buys the property.  For an individual to buy you have to pay $10,000 on the day of the sale and have a cashier's check for the full balance of the sale by 5 p.m. the following day.
3)  Lender Ownership
4)  Sale on the Open Market- at this point you see properties advertised as Bank Owned or REO's.

There are many of these properties currently on the market.  What should you consider, if you want to buy one?
1)  How important is location in getting the price you want?  The best buys may not be where you want to live.
2)  What condition do you want the property to be in-these properties are generally sold "as is" and may need substantial repairs?
3)  How much cash do you have available?  Down payment plus fix-up?
4)  What is your timing?  Much patience can be required in waiting for a response from a lender (particularly with a "short sale") response time can be many weeks or months with no guarantee that after waiting you will even get the property.  A bank-owned property can be a shorter wait time and a better possibility for your sale to make it through the process to completion.

With the abundance of inventory on the market, there is a possibility that you could negotiate as "good a deal" with an owner who is not in trouble but is anxious to sell.

One way or the other, whichever you choose, it is a good time to get involved and there are bargains to be had!!!!

It's great to see that finally the lawmakers in Arizona decided that 10,000 loan originators and front line employees of mortgage companies, brokers and lenders should be subject to screening, processing, licensing and accountability.  The law will not go into effect until January 1, 2010, but now all involved are put on notice and will know the licensing requirements to be involved in the mortgage process.  No longer will those individuals from out-of-state, who could not qualify to be involved in mortgages where they came from, conveniently come to Arizona and easily, without licensing, become involved.  Under the old system, we were encouraging unscrupulous individuals to come here because it was so easy.  As of 2010, loan officers and mortgage originators will be required to pass a test, pay a fee and notify the Arizona Department of Financial Institutions where they are working.  They will also be required to complete six continuing education units for license renewal.

To help in the process of helping to weed out fraud, prevent abuses and protect consumers, a loan originator is prohibited from:
1)  acting on their own behalf, accepting any monies or documents in connection with a mortgage loan application.
2)  receiving any compensation in connection eith negotiating or arranging a mortgage loan if the person is not licensed.
3)  contracting with an unlicensed independent party who acts as a loan originator.
4)  being employed by more than one mortgage banker or broker at any one time.
5)  collecting compensation as a real estate broker or salesman unless the originator is licensed as such, and the originator discloses to the consumer that  the originator will receive compensation for both the origination and real estate services.
6)  making a false promise or misrepresentation or concealing an essential or material fact in the course of business.
7)  failing to truthfully account for the monies belonging to the party to a mortgage loan transaction or failing to disburse monies in accordance with an agreement.
8)  engaging in illegal or improper business practices.
9)  advertising or soliciting mortgage business in any manner without using the name and license number of the employing mortgage broker or banker.

All of the above may seem obvious, as abuses, but now it is in writing and therefore can help in enforcing accountability.  This is definitely a step in the right direction.

North Scottsdale has parks for family and individual recreation. It is a pleasure to live in a community which has been willing to spend the time and effort to preserve some land for resident enjoyment.  Personally, I use the facilities at the Scottsdale McDowell Mountain Ranch Park and Aquatic Center.  For a minimal fee for residents of Scottsdale, full or part-time, the fitness facilities can be enjoyed with a full array of equipment to help get you into or stay in shape.  A bonus is doing a workout and looking out the windows to see beautiful desert and mountain scenery.  If you don't have your own pool or just want to enjoy a variety of water features - lap pool, water slide, lazy river, etc. then the Aquatic Center offers all of that and more.  If you want, just relax and sit by the pool or enjoy a snack at the snack bar.  For more vigorous activity for young and older, use the Skate Boarding area.  Unfortunately, I am sure that residents, who do not live in McDowell Mountain Ranch, may not have a clue that this facility exists.

If you do not live in North Scottsdale and are thinking of moving here, this is just another reason to help you in your decision-making process.  It is also important to know that this is not the only Scottsdale Park in the North Scottsdale Area.  For community activities and sports events, there is also a park near Princess Drive and Hayden.   In addition, a new park is scheduled for Grayhawk for construction on 54 acres at the southwest corner of Hayden Road and Thompson Peak Parkway.  This $8.9 million project is scheduled for completion by the fall of 2009.

It's O.K. if I am promoting North Scottsdale this way, after all I am a member of the North Scottsdale Chamber of Commerce.

Regardless of whether you are planning to sell your home now or sometime in the future, you can start making improvements now.  Too often, people wait until they want to sell to do the improvements which they have always considered. Then as a realtor, I am frequently told by a seller that now their home is just the way they always wanted it to be and they are leaving without enjoying what they did.  So- don't wait!!  Of course, cost is a major consioderation, so here are some guidelines provided by the real estate maven, Barbara Corcoran.

Home value is the key ingredient in determining how much to spend.  Barbara's advice:
Home Value:  $250,000 - spend $10,000 to $20,000.
Home Value:  $500,000 - spend $20,000 to $50,000
Home Value:  $1 million+ - spend $30,000 to $100,000.

In each case, what is important is a "good first impression."  Cosmetic appearance is first on the list and involves painting.  Depending on your budget, paint what potential buyers are going to see first, such as the front door.  Walls should be painted a neutral color, a light color but not a "stark" white.

Second, replace or fix Structural items.  These include items that are broken and don't work, unsightly flaws, such as water stains, and updating, based on what you can afford of appliances, fixtures.  The look created by a new faucet, door handle, light fixture, ceiling fan, etc. can make a big difference in how old and worn a home looks.  A bonus is that new paint and new fixtures make a home look "clean" and that wins bonus points with buyers.  Also you feel good living in an "updated" home.

Third, focus on your landscaping.  Make sure it is "maintained, particularly close to the house and what buyers see from the street. Based on your budget, you can update your foliage, shrubs and flowers.  Again, remembering this is a "first impression."

For any budget, it is important for a home to look very clean.  Included in cleanliness is getting rid of "stuff," all those items you have been collecting for years and catching dust.  Pack up these items, have a garage sale or donate them to charity.  Clutter does not make a good impression and sometimes causes buyers to look at the "stuff" and not the house.  Make sure the house looks bright.  New paint helps, as well as letting light in from the outside and ncreasing the wattage of lamps.  Last but not least, do your best to be neutral about your house and its appearance.

County Ranchette

• 2,038 sq. ft., 2 bath, 3 bdrm single story "Territoial" - MLS® $619,900 - Landscaped Acre+

Cave Creek, Maricopa County  -  TOP TEN REASONS TO BUY THIS RANCHETTE!!
10) Enjoy Freedom - NO HOA
9) Save Gas - Ride Your Horse Out of the Gate for Fun
8) Go Green - Enjoy Your Own Vegetable Garden, Fruits and Nuts
7) Be Self-Sufficient - Get Fresh Eggs From Your Own Chickens
6) Go Organic - Make Your Own Wine From Your Grapes
5) Save a Trip to the Ocean - Swim In Your Salt Water Pool
4) Make Your Own Movie - Got Western Tack House As Prop
3) Be Eclectic - Have Rustic Tranquility Close to Stores and Roads
2) Have Room to Roam on Your Acre+ With Your Peacocks
1) Be the Only One of Your Friends to Live on a "County Island Oasis!"

IF YOU DARE TO BE EXTRA ORDINARY RATHER THAN ORDINARY!!!! THIS IS THE HOME AND LAND FOR YOU!!!!

Property information

I just listed a home and property which caused me to stop and think.  The home built in 2003 is a territorial "Western" ranch home on an acre plus in a Maricopa "county island." ( That means it belongs to the "county" and not Scottsdale, Phoenix, Cave Creek,etc.") It has rustic tranquility but is close to roads, schools, shopping and is about 5 miles north of the 101 off of Tatum.  What is intriguing about the property is that the current owners have developed the land from "raw" desert to completely landscaped with vegetable,herb and flower gardens, citrus, fruit, nut and fig trees, grape vines and have their own chickens for fresh eggs.  It is completely walled in and has a pebble tec salt water swimming pool.

It seems to me that the current owners and future owners of this property are prepared to be "Survivalists" in an uncertain world where affordability of daily living has become an issue.  Gas, food and energy prices keep going up.  There is talk of scarcities occurring, global warming having an impact and the advantages and necessity for "Going Green."  Here at this "Desert County Oasis," the occupants are certainly more prepared than most to survive in the type of world which some are predicting will come, sooner or later.

The improvements made to this home and property are just at beginning stages if the next owner chooses to do more such as solar panels, building a green house, expanding to more livestock, there are numerous possibilities.  If you would like to take a look, go to website 4408emorningstarlane.platinumrealtyaz.com.  At any rate, "food" for thought. (Pardon the pun!)

What is "predatory" lending?   Predatory lending involves unfair and deceptive lending practices which have specifically targeted borrowers who could not qualify for conventional financing such as seniors with equity in their homes, minority consumers and low income families or individuals lacking a good credit rating.  Originally, as part of the  Federal Fair Housing Act and others, there was intent to prohibit discrimination in home financing by banning "redlining" and providing incentives to lenders to serve minority and low-income areas. Unfortunately what eventually emerged in the lending industry was "reverse redlining" in which the areas and people which had previously been starved for credit and denied loans were flooded with exploitative loan products.  Now today as a result of this, we are bombarded by the media with the current problems associated with "sub prime lending."   Sub prime loans were designed to serve high risk borrowers who would not qualify for conventional, prime loans by charging higher rates and fees.  Not all sub prime loans are predatory, but virtually all predatory loans are sub prime.

In recent years, the parameters of who could be targeted by unscrupulous lenders with sub prime loans expanded.  The dream of home ownership was used to convince buyers that they could afford a loan even if they did not have any money for a down payment or an acceptable credit score. They could get a low introductory "teaser" rate with a variety of variable rate mortgage options and no or little money down and perhaps only pay "interest only" for a period of time.  For lenders to "close the deal" and make their money, the buyers were basically told not to worry about the consequences in a year or two when a variable rate would adjust and  that there would now be a payment of both principal and interest and the loan payment would become much bigger.

Now we are in the midst of investigations regarding culpability.  Who is to blame for the current mess we are in?  It is difficult to just blame the lenders as it is impossible to know how many borrowers willingly participated in being untruthful about their incomes.  How much responsibility does the borrower have to be responsible for in terms of reading the documents for terms and conditions and looking ahead to how much a payment will be when the variable rate changes and/or now they would have to pay both principal and interest?  No one anticipated negative equity.

Perhaps none of these issues directly relate to you but what does?  First and foremost is the affect on home values.  As the number of foreclosures on the market increase, the value of homes has decreased.  When homeowners no longer can afford the mortgage payment on their house, their home has negative equity and they "walk away" sending their keys to their lender in the mail, there is an impact on the rest of their neighborhood as now it has an "abandoned," unkempt property which again affects property values.  The inventory of homes for sale has significantly increased which means that it is more difficult and takes longer for a home to sell.  If you want to buy a home, the timing could be very good because of the choices and prices of homes but you as a buyer may have a much more difficult time qualifying for a mortgage.  As the pendulum swings, before it swung in favor of borrowers and now it is not.  Hopefully a lesson has been learned and it is time for a reality check.  Back to the basics, buy what you can afford, read any document you are going to sign and have a "rainy day" fund in case of an emergency.

Prior to the "market frenzy," there were some established "guidelines" which helped  potential buyers determine how much of a home they could afford.   Because of the current problems which have evolved due to changes in the "basics" about lending, many of the lenders have returned to previous lending guidelines.The previous budgeting standard was to look at a ratio of approximately 30% of income going to the house payment and approximately 40% of total income going to the total debt. 

Another factor to take into consideration, is the cost of commuting.  On my website www.azrealestatebuysell.com I have a commuter calculator.  With the cost of gas going up and up, the distance you have to travel to work and back can have a significant impact on your budget.  Buying a less expensive home because it is further away in a new area of development may not actually save you money. You should also consider the impact on you of the time spent commuting everyday in traffic.

In addition, there are also other costs to calculate.  Taxes, mortgage insurance, HOA fees and maintenance costs need to be included in your budget.  As we now see with the growing number of foreclosures, it is best to probably underestimate rather than overestimate what you can afford.  Everyone has unforeseen emergencies whether medical, loss of job, divorce, etc.  When buying a home, it is time for a "reality check" and based on the problems of the last couple of years a good idea to go back to the basics of  budgeting guidelines.

Are you IN or ON the market with your home for sale????   Wondering why you have a lack of activity or activity with no offers????  In the market we are in, the pricing of your home is crucial.  If you are not priced right ( and that by the way is determined by potential Buyers and not you), Buyers will not look at your home, or look at your home, give you positive feedback but not make an offer.  If this is happening to you, it means you are IN the market along with thousands of other homes, but you are not ON the market.

You can justify your price by the upgrades you have done to your home.  You can justify your price by comparing it to what your neighbor sold his house for a few months ago.  You can justify your price with a comparative market analysis which says your home is worth  a certain price.  However, no offers or no sale means that something is wrong!!!  Do you really want to sell??  If you do, please take a look at your own situation and decide for yourself, are you IN or ON the market? 

What are you waiting for?  If you are a Buyer in the current market, there are amazing buys to be found!  Everyone I know in the business wishes that they had "tons of cash" to spend.  We see the bargains everyday.  There are a plentiful choice of homes and mortgage rates are still very low.  We have gone back in time to prices of homes which everyone thought they would never see.  The axiom of "buy low" is right on to poise yourself to "sell high" when the market goes up again.

If a seller really wants to sell their home they have to be realistic amd most are willing to negotiate to make the sale.  If you are looking for a home in the $300,000 price range or lower (yes even in Scottsdale) the revised FHA financing programs are providing some great loan possibilities.  No one is going to ring a bell when prices have hit bottom, just like no one rang the bell when they peaked.  We do know for sure that home prices are the lowest they have been in years.  If you want to buy, buy now!

Beware of stretching the "truth" when purchasing a home.  Not long ago if a buyer "stretched" the truth with a mortgage lender about income or assets, particularly if a "stated income" loan, as long as the mortgage payment was made - no problem.  In the current market where homes are going up for "short sales" and foreclosures, now there is a new emphasis being placed on investigating these types of loans as "fraud for housing."  Now if someone can no longer make a mortgage payment, it is possible for an investigator to go back and review loan applications and docs to determine what the problem is.  It will seem very strange if someone was actually making $75000 per year(per tax returns) and their mortgage application said they were making $150,000 a year to afford the house they were buying.  This is fraud and not a minor offense, according to the law.  What will be the consequences?  Don't know but certainly not a good situation to be in.

Another fraud issue is buying a house for investment and claiming to be buying the home as a primary residence. The interest rates on the loan may be better, but the chance of getting caught sometime in the future is certainly not worth the risk.  I realize that this blog is too late for those who a few years ago participated in these activities without concern for doing something wrong or getting caught.  There was a general consensus that stretching the truth in these ways was not really a serious problem.  Well not any more.

With the mortgage debacle which has gone on over recent months, there is an attempt again being make by legislators to license mortgage originators and loan officers in Arizona.  The current bill  would require mortgage originators to take a test, take continuing education and be accountable to regulators.  This bill has come up before but always gets stalled and goes nowhere.

I, for one, cannot understand  why loan officers are not held accountable!  Real estate agents, mortgage brokers and appraisers are all regulated and held accountable for their actions.  Here we are with a record number of foreclosures and mortgages "gone bad" and those who originated these loans basically have taken their commission " money and have run."

If the State is to crack down on the record number of bad lenders who have been caught committing fraud and taking advantage of consumers with bad loans,  the legislation this time needs must be passed

The news is out!  Finally home sales are up after months of decline.  The news says "unexpectedly?"  Why "unexpectedly"?  Those of us who are in the business have been well aware that the key to getting a home sold in this market has been price.  Buyers have "been on the fence" waiting to buy when the prices for homes were perceived as "right."  Homes have been selling as long as they were "priced right."

The message has been the same over and over.  If a seller insists on keeping a price up, receives little activity and no offers, take a hint, buyers perceive the price as "too high."  In most cases, if a seller decides to get their house sold and reduces the price, it gets sold.  If a seller decides to "fight the market" it just means that they will probably have to wait to sell until the "market goes up."  Based on individual circumsances, the decision of what approach to take is left up to the seller.  Be realistic and sell now or wait until the market changes.