Phoenix homes for sale ranked 21st most affordable in Metro area

Phoenix homes for sale ranked 21st most affordable at $78 per square foot in Metro area

This table ranks Metro Phoenix cities and their corresponding homes for sale by their annual average sales price per square foot. Only single family detached homes are included in these numbers. Information for major and secondary cities is current as of September 30th, 2009. Data for the small cities is updated on a monthly basis, and is measured on the 13th of each month. As you can see, Phoenix homes for sale are more affordable than those in many surrounding communities.

The primary function of this table is to show the least and most affordable homes for sale in the Phoenix metropolitan area together with longer term pricing trends.

Annual averages are based on a relatively large number of sales. Therefore they are not as subject to rapid change as monthly averages. The downside is that they do not necessarily represent the "current" market (or market right at this moment on 9/30/2009) very accurately, since they include sales from up to a year ago. Pricing may have moved a great deal since then. However, the information is consistent for all homes for sale in the Phoenix area and will give good trending information.

Note that Higley has been included in Gilbert and Ahwatukee included in Phoenix. Desert Hills is still counted separately though it is increasingly being incorporated into Phoenix.

Note that Phoenix is second only to Tonopah Arizona with the largest year over year (YOY) decrease in average price per square foot for all homes for sale in a range that extends from $337 to $59 per square foot.This can be attributed to the large number of new home communities built in west Phoenix over the last seven years, complete with all of the bad financing and other troubles that led to the classic foreclosure profile we have now come to know.

Statistical Information courtesy of the CromfordReport.com

Greater Phoenix Area named Best Place to Start a Business by Entrepreneur.com

Greater Phoenix Area named Best Place to Start a Business by Entrepreneur.com

Entrepreneur Magazine ranked the Greater Phoenix Metropolitan Area as one of the 10 Best Places for an investment to start a business in its August issue. The growth of the area for the last 20 years has led to a need for many kinds of business, according to the publication. The writer also indicates that an emerging tech scene and coordinated revitalization efforts are attracting more startup and tech-savvy business. Even in this economy there are opportunities for investment. Read more: http://www.entrepreneur.com/magazine/entrepreneur/2009/August/202666-1.html


Entrepreneur, an online and print small business publication, provides information to help people start, grow or manage a small business. Entrepreneur.com is a top 5,000 site that reaches more than1.2 million people monthly, according to Quantcast.com.

Could buying Metro Phoenix foreclosures get easier? 15 day "First Look" program

Could buying Metro Phoenix foreclosures get easier? 15 day "First Look" program

My trusted Phoenix area loan officer, Craig Bohall, Academy Mortgage, craig@myazmp.com alerted me to this. Simple answer: HECK YES -- if we could cut out the government's addictive overdosing of regulations that have been piled on like a 7 layer bean dip. But, since that is not going to happen any time soon we can take joy in small victories like this 15 day "First Look" program.

The government-run Fannie Mae has come out recently with a plan to keep investors away from their foreclosures for 15 days and allow the average Joe/Jane a first look and opportunity to get in their offers before investors. A reporter from the AZ Republic (serving the Phoenix area) had this to say regarding this announcement...

"Arizona home buyers trying to tap federal funds to help them purchase foreclosure homes might find it a little easier now. Mortgage giant Fannie Mae recently launched a program called “First Look” that bars investors for bidding on its foreclosures for the first 15 days they go on the market. In metropolitan Phoenix, first-time buyers typically lose out to investors on the best foreclosure homes. "

To read Catherine Reagor's full story click here http://www.azcentral.com/members/Blog/CatherineReagor/63525.

Is this good or bad? Well depends whether you are Joe Average or Jane investor buying Phoenix foreclosures doesn't it? On the one hand poor Joe Average was previously getting beat out on the 60K home in Phoenix when he offered 62K. That's because a cash investor was there who could close in 48 hours while the Joe Average will need 30 days to close through his lender. On the other hand, without Jane investor helping to stop prices from falling and even create some bidding wars for Phoenix foreclosures we could be left to the pricing "mud-slide" we saw for months on end!

On the one hand, Jane investor can buy 20 Phoenix foreclosures and Joe Average can only buy one foreclosure, so who is helping the economy and helping to reduce inventory more? But we Americans sooooo love to find something that seems unfair and get the government to regulate it.

But on the other hand, if the government is going to give federal funds ONLY to Joe Averages (no investors) they should have some say in letting Joe Average "to the dance" 15 days before investors swarm in on Phoenix foreclosures and give Joe Average a first look.

Yet, on the other hand, if they let free market principles work the highest bidder gets the foreclosures. Maybe the investor wants a great deal and bids 60K while Joe Average out bids him with 65K or 69K. Would that make our housing market rebound and get normal sellers back in the market sooner? Will that allow the market to run on it's own again instead of this "propping up" that we have now.

However, on the other hand... I am out of hands. What do you think about the 15 day "First Look" program and it's effect on Phoenix foreclosures?

Understanding the short sale process

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Help understanding the mortgage short sale process -- Part 5 of 5

DO MORTGAGE SHORT SALES REALLY WORK (ALSO SEE LEGAL IMPLICATIONS)

(HELP #12)

Part 4 of 5

We sometimes hear people say how the short sale process isn’t worth the time and rarely works. That is not our overall experience and we have several practices to help ensure a successful short sale process.

First, we prescreen all short sale information. This means collecting and reviewing the homeowner financials (including Hardship Letter) so there are no surprises in the process (like $20,000 sitting in the homeowner’s bank account). This also includes going over ramifications of the short sale process with the homeowner (i.e. possibility of a 1099C, a soft note on the 2nd and that any liens on the property will need to be paid). For example, if a homeowner has a home equity line of credit the mortgage lender will most likely ask for a “soft note” (loan for a portion of the balance with easy terms) to proceed with the short sale (more in HELP #13). It’s a big help to know upfront if the homeowner absolutely refuses to comply with such a short sale condition.

Second, we consistently follow up and nudge the mortgage lender(s) to move forward for a successful short sale process. We know lenders move slow with short sales, but when we find a short sale package has “disappeared” we move quickly and replace whatever they lost in the process. Consistent follow up is important when the short sale process is not moving forward in a timely manner with the mortgage lender(s).

Utilizing these practices will guarantee a much higher short sale success rate. We can attest to that!

BEWARE OF THE NON-PURCHASE MONEY SECOND MORTGAGE

(HELP #13)

If you decide to pursue a real estate short sale, be aware of the "non-purchase money" 2nd mortgage. A non-purchase money mortgage is one used for more than the purchase of the house. For example, a HELOC ( home equity line of credit) is a non-purchase money second mortgage. A HELOC may have been used to consolidate debt, take a vacation, or buy a new boat/car. In other words, the mortgage loan was for more than the house. In contrast, a purchase money second mortgage was taken out at the time of purchase process and used exclusively to buy the house.

Lenders holding the note for a HELOC are less likely to let the homeowner walk from the short sale process without repaying a portion of the loan. They know the homeowner will still enjoy the benefits of their debt consolidation, vacation, or new boat/car long after they sell their home on a short sale. Therefore, they feel the homeowner should take more financial responsibility. How? By signing a promissory note for up to one half of the second mortgage. Many times these promissory notes will be "zero" interest loans for up to 15 years to help the homeowner complete the short sale process.

Here’s the real problem: if short sale homework is not done up front to determine the intentions of the non-purchase money second mortgage lender and homeowner, we could find a short sale buyer only to learn the second mortgage requires a large promissory note. If the homeowner refuses to sign it the second mortgage holder will not sign off on the short sale process and the house will go to the trustee's sale.

LEGAL IMPLICATIONS OF THE SHORT SALE PROCESS

(HELP #14)

Consult an attorney/accountant for longer-term effects before completing a mortgage short sale. Although we are experienced short sale experts, we are not qualified to give legal or tax help associated with the process.

The IRS formerly considered debt forgiveness as income. However, legislation (October 2007) has reversed that rule. Additionally, ARS 33-729 and ARS 33-814 protect a homeowner from a mortgage lender deficiency if:

• the property is less than 2.5 acres
• is a 1-2 unit dwelling (dwelling means someone lived in the property)
• “purchase money” was used in the mortgage process
  
• the property is sold at the trustee’s sale (A BIG REASON TO APPROVE A SHORT SALE because if the mortgage lender rejects the short sale they cannot collect a deficiency)

Additionally, the IRS will not collect the ‘forgiveness’ tax if ANY condition applies during the year the forgiveness occurred (The Mortgage Forgiveness Debt Relief Act and Debt Cancellation 2007):

• it was the homeowner's primary residence for two of the last five years and “purchase money” was used
• the homeowner can prove insolvency (more debt than assets)
• the homeowner completed bankruptcy (and debt was discharged)

Part 4 of 5

* Home Sellers * -- see mortgage short sales we successfully sold

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Help understanding the mortgage short sale process -- Part 4 of 5

BROKERS PRICE OPINION, or BPO for SHORT SALE PROCESS

(HELP #9)

Read part 3 of 5

The most important fact the mortgage lender needs to know is how much the short sale property is worth? Most mortgage lenders hire a real estate agent/broker to help evaluate the short sale property. This evaluation process is called the broker’s price opinion or BPO. The BPO is one of the largest hurdles to clear when completing the short sale process. Our goal -- after submitting your initial package to the mortgage lender -- is to get them to order this evaluation and provide additional comparable sales to insure it is accurate.

The agent/broker will call to set an appointment to complete the short sale BPO. We meet the agent at the home and develop rapport. We share how comparable sales and other factors affect the short sale properties value. If handled correctly, some agents will actually disclose the price they submit to the mortgage lender. This is a huge help because most mortgage lenders will not disclose the ACTUAL amount of the short sale BPO. They want to get the most money from the process for their mortgage investor.

HOW WE HANDLE THE SHORT SALE NEGOTIATION PROCESS

(HELP #10)

Here are some highlights that help negotiate a short sale process. Every mortgage lender and negotiator has a different approach when it comes to handling the short sale process:

• We are patient, yet persistent and helpful with the mortgage lender on the short sale
• We reinforce to the mortgage lender how a short sale helps save many costs associated with the foreclosure process: attorney’s fees, eviction procedure, delays from borrower's bankruptcy, damages to property in the process, etc
• We work to convince the mortgage lender how it's in their best interest to approve the short sale by accepting less money now
• If the mortgage lender responds with a higher short sale counter offer, we ask open-ended questions regarding their opinion of the validity of the short sale BPO to draw out more information
• We ask if they agree with the agent’s assessment and how it was obtained
• We expect a mortgage lender will actually accept between $10,000-$20,000 less for the short sale than stated

CAN SHORT SALE OFFERS BE REJECTED?

(HELP #11)

This is a familiar process: The mortgage lender receives the short sale BPO from the agent. It's higher than the offered sales price, so the loss mitigator requests that the contract price be increased. If this happens we:

• send back a "counter-to-the-counter" with the original offer price; we send additional comparable property information to prove why the mortgage lender should accept the original short sale offer
• send pictures of the neighborhood
• send copies of newspaper articles with “bad housing news”
• send a bid for repair estimates

We ask the following questions regarding the short sale BPO and process if the mortgage lender still thinks the short sale property is worth more:

1. Are the comps an acceptable distance from the short sale property?
2. Are the comps of comparable size?
3. Does the square footage of the BPO match the original appraisal?
4. What is the interior condition?
5. How much allowance is given for the deferred maintenance?
6. How high is the crime rate in the area?

These questions can help figure out if the agent did a good or bad short sale BPO. Then we can submit more information to the mortgage lender to prove their BPO is incorrect. As a last resort, we can ask the mortgage lender if they will accept an independent FULL APPRAISAL for review.

Remember that the mortgage lender wants to avoid the process of the buyer filing bankruptcy. They also desire to unload unwanted property without taking a huge loss. We will always help move the short sale process forward.

How to short sale part 3

How to short sale part 5

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Help understanding the mortgage short sale process -- Part 3 of 5

SHORT SALE ITEMS YOUR MORTGAGE LENDER WILL HELP PAY

(HELP #6)

Read part 2 of 5

The lender(s) will usually pay for the following costs associated with the mortgage short sale process:

• Escrow fee (homeowner’s half)
• Owner’s title policy
• Mortgage Recording fee’s
• Short sale reconveyance fee
• Overnight mailing fee for the payoff
• Real estate property taxes and prorations
• Real estate commissions
• HOA dues and fee’s

If the HOA has placed a lien on the property, some mortgage lenders may allow $1,000 to be paid towards this lien to complete the short sale. We will negotiate with the HOA to reduce their fee’s and accept this money as payment in full. We will help remind the HOA they will receive nothing if this home goes to the foreclosure process and is sold at the trustee's sale! The short sale process will help them!

Mortgage lender will NOT HELP pay for the following short sale costs (see NOTE below the list):

• “buyer” closing and mortgage costs
• home warranty
• buyer’s mortgage appraisal
• buyer’s inspection
• any repairs to the short sale

NOTE: as of 2008 short sale process rules have changed. How? Mortgage lenders are now generally willing to help pay for the first two items on this list. Mortgage lenders are now more willing to negotiate details regarding a short sale. The bottom line is: if the mortgage lender wants the property off their books they will negotiate during the short sale process! Ask us how any recent changes can help the short sale process.

HOW WE HANDLE LOSS MITIGATION DEPARTMENTS

(HELP #7)

We will call the Loss Mitigation Department at the mortgage company and ask how long the short sale approval process will take once a complete short sale package is received. We fax all the short sale information discussed above. We include a fax cover page stating "this is a NEW SHORT SALE PACKAGE." We also request that they process an interior BPO, or Broker Price Opinion (this is an advanced form of a comparable market sales report).

The more complete the short sale package, the greater the homeowners chance for success in the process. The Loss Mitigation Department will be more willing to help us. There is only ONE opportunity to impress the mortgage lender with a strong, complete, and well organized short sale package! It's important that we do this process correctly the first time.

Once we have sent in your short sale package there is usually a one week wait (minimum) before calling the mortgage lender to learn which loss mitigation specialist is handling the file. The Loss Mitigation Department at the mortgage lender is busy -- if not highly overworked. Loss mitigators usually each have between 80-300 short sale files on their desk to process at one time. The loss mitigation specialist will be our contact for the duration of the short sale process. Our goal is to help the lenders short sale mitigator to work with us in the process. How? We provide as much short sale information as possible. This will help them with the short sale process and will ultimately help the homeowner. We show the short sale mitigator our expertise by sending them a complete mortgage short sale package and by being organized. We let them know we understand how busy they are with short sales and appreciate the valuable time they are spending to help the homeowner’s short sale process.

COMMON SHORT SALE PROCESS MISTAKES

(HELP #8)

3 common mortgage short sale process mistakes

1. Sending in a low-ball short sale offer that we know the mortgage lender will not accept.
2. Unfamiliarity with the short sale process. Mortgage lenders are busy and don’t have time to explain the short sale process. We show them how we know the process.
3. Not determining the intentions of a second mortgage lender, if one exists. Second mortgage lenders have the right to disapprove the short sale so we work quickly to learn their requirements.

Part 2 of 5

Part 4 of 5

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Help understanding the mortgage short sale process

WHY HOMEOWNERS SHOULD DO A MORTGAGE SHORT SALE

(HELP #4) Read part 1 of 5

A short sale will be reported as “loan paid NOT as agreed” on a credit report. The number of 30, 60, and 90 day late mortgage payments before the loan payoff does not help and can be more damaging than the short sale process.

The foreclosure process will affect the homeowner’s credit report for between 7-10 years. A Deed in Lieu of Foreclosure (owner signs the house over to mortgage lender to avoid the foreclosure process) has less of an effect on their credit then a foreclosure. However, the mortgage short sale has the least affect on their credit. To summarize:

1. Foreclosure process (most effect on credit)
2. Deed in Lieu (less effect than foreclosure)
3. Short Sale process (most help preserving credit)

Many homeowners who participated in a short sale process were able to purchase another home within 2-4 years, depending on other credit issues. Additional benefits of a short sale to the owner include:

• helping get the short sale home sold and mortgage paid off
• mortgage lender accepting a discounted payoff from the short sale
• no out-of-pocket cost for the short sale process to the owner (mortgage holder will help pay all short sale costs)
• no worry about house and mortgage after the short sale

ITEMS YOUR MORTGAGE LENDER WILL PROCESS

(HELP #5)

Here is a list of items needed by most mortgage lenders to help complete the short sale process:

• Letter of authorization allowing us to help process the short sale on your behalf
• Hardship letter to inform how you have been affected by:
  o Family illness or injury
  o Job relocation
  o Job loss or significant income loss
  o Divorce or split of domestic partners
  o Adjustment in mortgage payment or unforeseen increase in living expenses
  o Anything else life can throw at a person
• 2 months pay stubs for each homeowner on the loan
• 2 months bank statements, all pages, for all accounts
• 2 years tax returns
• Comparative Market Analysis
• Listing agreement
• Short sale purchase contract and all counter offers
• Buyer’s LSR (loan status report) for the short sale process to show prequalification for purchasing the property
• Short sale settlement statement from the title company showing how the mortgage lender’s net proceeds are affected after all short sale costs are paid

Read part 1 of 5

Read part 3 of 5

On Phoenix Homes for Sale

Help understanding the mortgage short sale process -- Part 1 of 5

HELP UNDERSTANDING THE MORTGAGE SHORT SALE PROCESS

(HELP #1)

How to understand the process: a mortgage short sale is an arrangement between the homeowners and the mortgage lender(s). A short sale occurs when the mortgage lender or investor accepts less money than owed and considers the debt “paid in full,” thereby permitting the sale to occur. The difference between the amount owed and what the mortgage lender collects on the short sale is known as the deficiency. Mortgage lenders in other states have tried to obtain judgments for the mortgage short sale deficiency and others have forgiven it. Fortunately, Arizona is an anti-deficiency state which will help to preserve your financial health after the short sale process. See legal implications of the short sale process

Note that the word “mortgage” is used in this information but “deed of trusts” are used in Arizona.

WHY DO MORTGAGE LENDERS ACCEPT SHORT SALES?

(HELP #2)

• The mortgage is in arrears
• Property condition is poor
• To help a homeowner with hardships defaulting on a mortgage
• The area or neighborhood has depreciated
• The mortgage lender’s shareholders are concerned with excessive defaulting mortgages; By accepting the mortgage short sale process, the mortgage lender can help themselves by avoiding a lengthy, costly foreclosure process. A foreclosure results in the mortgage lender owning the property (known as real estate owned or REO). REO’s are a liability, not an asset; too many liabilities will cause any business problems

HOW LONG IS THE MORTGAGE SHORT SALE PROCESS?

(HELP #3)

How long will the process take? This is a complicated question that depends on both the homeowner’s and mortgage lender’s situations. The first thing consideration during the short sale process is whether the homeowner has received a Notice of Default (NOD). NOD’s are sent to homeowners 90 days after missing their first mortgage payment. This process ends with the house being sold at a Trustee’s Sale 90 days after the homeowner receives a NOD (unless payments are made). Mortgage lenders can delay the mortgage foreclosure process if the homeowner has a valid contract for sale on the home.

Average short sales can be anywhere from a 2-6 month process from the time of the accepted purchase contract. It is unclear why or how the mortgage short sale process takes that long, but the most common answers seem to be:

• increasing numbers of short sales are keeping mortgage lenders very busy
• mortgage lenders who are already losing money are unlikely to hire additional help to process short sales

A short sale can be processed in less time, but is dependent on the mortgage lender and how quickly they respond and process it. It’s definitely important to get the mortgage lender all short sale information they require. As short sale process specialists we constantly follow up and help the mortgage lender process the file.

Part 2

Previous post about Tempe foreclosure

See on Phoenix Homes for Sale

Tempe Homes - Pre Release of Lender property - 4 bed and 1,785 sq ft

PRE-RELEASE of Tempe homes -- FALL 2009 Metro Phoenix foreclosures and Tempe Homes.

This home in the Tempe homes subdivision of Cyprus East has not been released to the general public. It is undergoing some cosmetic repairs before offers are taken for this Tempe homes. This is your chance to get an excellent deal for Tempe homes at the crossroads of Rural Road and Southern Avenue in a great Tempe location at a very good price.



Estimated price for this Tempe homes is between $165,000 - $175,000 but is subject to final bank approval. A full appraisal may have been ordered on this lender owned property.

This Tempe homes was built in 1963, has 1,785 square feet, 4 bedrooms, 2 bathrooms, and a two-car garage. It has a newer roof, newer air conditioning unit, and newer electrical panel. Beautiful granite countertops are a prime feature in the kitchen in this Tempe homes. This Tempe homes will require painting, carpet replacement, and a good overall cleaning.

This location of this Tempe homes is within 3 miles of Arizona State University. It is close to public transportation including public buses, the Orbit, and the light rail system. Mill Avenue, entertainment, restaurants, nightclubs, grocery shopping, home improvement, movies, theater, parks, etc. are all easily accessible from this wonderful location.





Call Ron Wilczek, designated broker, Metro Phoenix Homes at 480-445-9480 to see this Tempe homes.

Permission obtained from listing agent to advertise this home for consumers only.

Listing distress for Phoenix homes for sale

Seen on ValleyWideHomes.com

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Buy and Bail - banks, bank robbers, and bloodhounds

If you don't know what "Buy and Bail" is read this post. For the rest of you who know what buy and bail is, how has buy and bail changed the lending industry for every American?

Look at it this way: A bank gets robbed by a 20-yr old white male wearing a Cubs baseball hat. Then it happens again with the same type of guy and same hat. You start to see a pattern when hundreds of banks are robbed by a person with the same MO. Could this be an organized gang or perhaps tons of copycat bank robbers?

One day a customer enters a bank fitting that description and the teller behind the counter gets very nervous and the adrenalin starts to pump. "OH NO! I'm going to get robbed!" Perhaps the guy has a Red Sox hat. The teller still gets nervous because he looks close enough to the other robbers.

The banks say "Let's not wait till we get robbed again. Let's increase our security (like at the airport) and search all guys fitting this description. WAIT -- let's search everybody because maybe later we'll get robbed by a Chinese woman wearing glasses and a wig.

Buy and Bail people are like bank robbers. They "rob" Fannie Mae of money owed on house "number 1" while going out and getting house "number 2" -- knowing full well they are going to buy and bail.

Unfortunately it isn't as easy as "what you are wearing" to determine who will be the next buy and bail person. To see who might be a potential buy and bail robber simply look at what the other buy and bail robbers had in common when they did their buy and bail:

• Buy and Bail clue 1 - they had homes that were upside down
• Buy and Bail clue 2 - most bought a new home in the same general area where they lived
• Buy and Bail clue 3 - they all said they were going to rent their current home
• Buy and Bail clue 4 - they all had no history of rental income from their current home
• Buy and Bail clue 5 - most had no renter lined up or a fake rental agreement
• Buy and Bail clue 6 - they could not afford two home mortgages.

When your current home is upside down and you are trying to buy a new one, please understand that you look like the last 1,000 buy and bail bank robbers. The government put out a warning that if you look like (or your file even smells like) the other buy and bail bank robbers they will assume you might be a buy and bail robber and REFUSE your loan. If you get the loan you will need to jump through extra hoops such as: take a lie detector test, get fingerprinted, and possibly get a GPS tracking chip in your forehead.

Underwriters are now like bloodhounds sniffing out anything that might lead them to the scent of another buy and bail robber!

It's sad for the ordinary 20 yr old white guy in a Cubs hat who is coming into the bank for some honest business. He's in for a rude awakening. PUT YOUR HANDS IN THE AIR AND STEP AWAY FROM THE COUNTER you buy and bail robber!

Previous post on "Default on mortgage loans – the moral, social, and strategic implications"

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Default on mortgage loans – the moral, social, and strategic implications

The moral, social, and strategic implications of default on mortgage loans

The National Bureau of Economic Research (NBER) recently published research regarding default on mortgage loans written by authors Luigi Guiso, Paola Sapienza, and Luigi Zingales. They used survey data to study American households' propensity to default on mortgage loans when the value of their mortgage exceeds the value of their house -- even if they can afford to pay their mortgage. They called this a “strategic" default on mortgage. They found that:

• 26% of people who default on mortgage loans do so under a “strategic" default. That means the homeowner chooses to 'walk away' even though they can make the payments. This could be because the borrower decides not to "throw good money after bad."
• No household would default on mortgage loans if the equity shortfall is less than 10% of the value of the house
• 17% of households would default on mortgage loans -- even if they can afford to pay their mortgage -- when the equity shortfall reaches 50% of the value of their house
• If equity was a negative $50,000, 20% of those who default on mortgage loans think it is not morally wrong to walk away, whereas only 7% of the "moral" ones would default on mortgage loans.
• If the negative equity is increased to $100,000, 22% of the "moral" ones would default on mortgage loans. At $200,000 upside-down, 37% said they would default on mortgage loans even though they thought it was morally wrong.
• The most important variables in predicting strategic default on mortgage loans are moral and social considerations. People who consider it immoral to default on mortgage loans are 77% less likely to declare their intention to default on mortgage loans, while people who know someone who defaulted are 82% more likely to declare their intention to default on mortgage loans.
• The willingness to default on mortgage loans increases with the proportion of foreclosures in the same ZIP code, seemingly because social stigma associated with default on mortgage loans become more common.

What do you think about this research on people who default on mortgage loans?

Post on Ative Rain about Arizona deed in lieu of foreclosure

Post on Active Rain about Seller's market in Metro Phoenix

Post on Foreclosure Expert about Metro Phoenix sellers Market

Foreclosure Expert post about giving a property back to the bank

Seller's market for Metro Phoenix homes for sale

We seem to be in a Seller's market for Metro Phoenix homes for sale. Granted, there are many places in the Metro Phoenix area were homes are still not moving. But Metro Phoenix homes for sale under $200,000 -- and particularly Metro Phoenix homes for sale under $100,000 -- are moving extremely fast. It's been quite a long time since we could say that, but statistical evidence points in that direction.

The chart depicts what is known as the Cromford Market Index^TM. Many experts, and myself, consider this report to be every bit as valuable as the Case-Shiller index -- but 3 months more current in its release for the Phoenix homes for sale market. Here is a simple description of the index from founder Mike Orr:

... a value that provides a short term forecast for the balance of the market. It is derived from the trends in pending, active and sold listings compared with historical data over the previous four years. Values below 100 indicate a buyer's market, while values above 100 indicate a seller's market. A value of 100 indicates a balanced market (http://www.cromfordreport.com).

Realtors trying to find Metro Phoenix homes for sale for clients can testify to this seller's market. We are constantly facing multiple offers undesirable properties. Buyers face a regular dose of frustration when they are outbid on Phoenix homes for sale. This condition parallels what happened in 2004 and 2005, although prices for Phoenix homes for sale will never get that high again.

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2009 market distress for Phoenix homes for sale

This post is exclusively for City of Phoenix homes for sale (not the entire ARMLS). It reports on normal, pre-foreclosure and lender owner properties as indicated by the dark blue, light blue and red colors respectively. The left side of the chart is dedicated to "active listings" and the right side to "monthly sales" for Phoenix homes for sale.

The chart indicates approximately 57.6% of active listings and 77.1% of recent monthly sales are distressed properties. Roughly speaking, on average 67.3% of Phoenix homes for sale are distressed properties as of September 2009.

It's particularly interesting to note the $75 difference in price per square foot between the asking price of normal "active listings" and the sales price of normal "monthly sales" for Phoenix homes for sale. Normal sales account for only 22.9% of recent monthly sales, but buyers are unwilling to pay for overpriced listings. On the other hand there is only an $8 difference for pre-foreclosures and $12 for lender owned Phoenix homes for sale. However, there is evidence in parts of the city that distressed properties are selling for 5% above asking price.

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Listing Success for Phoenix Homes for sale in August 2009

"Listing Success" for Phoenix Homes for sale in August 2009.

The listing success for Phoenix Homes for sale in August 2009 was over 65%. What is listing success? It's defined as the percentage of listings for Phoenix Homes for sale that closed with a sale rather than expiring or being canceled. The opposite way to state this is that 35% of listings that terminated in August were either expired or canceled. Obviously, the pricing/quality of those homes were not consistent with the marketplace demand.


Listing success can be a very good indicator of the relationship between the prices of Phoenix homes for sale, supply, and demand. Higher success indicates a relative match between the 3 factors and generally good sales. A higher percentage is good for the marketplace, and Phoenix homes for sale stay on the market for much less time. Buyers have to act quickly to get good deals.

Lower success indicates the opposite. As seen in 2008, the prices for Phoenix homes for sale, supply, and demand were not in balance. This resulted in fewer sales sellers having to terminate their listings in frustration.

The chart illustrates 2009 has been a much more favorable year than 2008 for Phoenix homes for sale. Roughly speaking, listing success has been about 50% better in 2009.

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Surprise rental homes in Arizona in Sierra Verde - $895 4 bed/2 bath

Surprise rental homes in Arizona in Sierra Verde subdivision located at 13920 W. Maui Lane is available for annual leases. Call for availability for Surprise rental homes in Arizona with 4 bedrooms, 2 bathrooms, two-car garage, and 1613 square feet. Home was built in 2004 by Taylor Woodrow and has one level.

$895 is the monthly lease rate for this single-family Surprise rental homes in Arizona home. The security deposit is $895 and the credit check amount is $25 for Surprise rental homes in Arizona. Located in the subdivision of Sierra Verde, it is close to professional baseball Spring Training and shopping.

The carpet color is beige, and this Surprise rental homes in Arizona has a combination of beautiful beige carpet and tile. The front and backyards of this Surprise rental homes in Arizona are desert landscaping for easy care. Lessee should check school districts for this Surprise rental homes in Arizona if they important to lessee.

Call Ron Wilczek, Designated Realtor, at 480-445-9480 to see this Surprise rental homes in Arizona located in Sierra Verde.







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Ron Wilczek, Broker/Owner

Metro Phoenix Homes

480-445-9480

$1,095 Goodyear Rental in Sunrise with 2,080 sq ft; 3 bed/den

Goodyear rental in Sunrise subdivision located at 14207 W. Indianola Avenue is available for annual leases.
Call for availability for this Goodyear rental with 3 bedrooms w/den, 2 bathrooms, two-car garage, and 2,080 square feet. It was built in 2001 by Fulton Homes and has one level. $1,095 is the monthly lease rate for this single-family Goodyear rental home. The security deposit is $1,095 and the credit check amount is $35 for this Goodyear rental.
Located in the subdivision of Sunrise, it is close to major freeways, professional football and hockey, and shopping. The carpet color is beige, and this Goodyear rental has a combination of beautiful wood laminate floors and tile. The front and backyards of this Goodyear rental are desert landscaping for easy care.
Lessee should check school districts for this Goodyear rental if they important to lessee. Call Ron Wilczek, Designated Realtor, at 480-445-9480 to see this Goodyear rental located in Sunrise.






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$895 Mesa Arizona Rental in Superstition Point near Loop 202 and Superstition Springs Mall

Mesa Arizona rental in Superstition Point.

September 7th, 2009
Immediate occupancy for this Mesa Arizona rental with three bedrooms, two bathrooms, two-car garage, and 1,207 square feet. $895 is the monthly lease rate for this single-family home and there is also a $15.76 rental tax. The security deposit for this single family rental is $895 and the credit check amount is $25.

Within 1/2 mile of the Loop 202 freeway and several miles from the Superstition Springs Mall, this Mesa Arizona rental -- located in the subdivision of Superstition Point -- is in an ideal location. The carpet color is beige. Linoleum floors are in the kitchen and bathrooms of this Mesa Arizona rental. The front yard of this Mesa Arizona rental is desert landscaping for easy care and the backyard is primarily grass.

Call Ron Wilczek, Designated Realtor 480-445-9480 to see this Mesa Arizona rental located in Superstition Point.











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