Two things historically hold true when it comes to investment dollars floating around Arizona. In the best of times, investors jump full force on the real estate bandwagon — most recently financing everything from subdivisions in far-flung cities and towns to urban condos in downtown Phoenix and Tempe. In the worst of times, investors also gravitate toward real estate, seduced by the lure of bargain buys on foreclosed homes and commercial properties as they bank on population growth to help Arizona’s economy rebound.
Stan Barnes, CEO of Copper State Consulting in Phoenix and a former state lawmaker, said those with established money in the Valley still feel more comfortable investing in real estate developments — even after market collapses like the current one — rather than taking chances on startups and entrepreneurs.
“People in California chase new high-tech companies. People in Texas drill for oil. People in Arizona invest in real estate. That’s just the way it is, and likely will be as long as we are the fastest-growing state in the union,” said Barnes, whose firm does political and communications consulting for private-sector clients.
In many areas in Arizona, specifically the Phoenix Metropolitan, there is a lack of traditional sales. Up to 75% of the market may consist of short sales and foreclosures, limiting the options of many buyers. Arizona Investors looking to flip see great opportunity in rehabbing and selling homes to these buyers, eliminating the wait time of short sales, or the challenges bank-owned homes may come with.
Arizona Investors are also seeing the opportunity in holding real estate long term, as both prices have come down and in many areas rental rates are up. We have probably never seen a better time to invest in real estate as we do in 2010, as cash flow and return on investment are the best they have been in over a decade.
If you are an investor looking to take advantage of this ideal investing climate, please contact Jen Wehner at 480-748-2925 email- Jennifer@JenniferWehner.com or visit my website- www.PrimeAZRealEstate.com
Existing-home sales in Scottsdale jumped 36 percent in the first half of this year, and home construction picked up slightly from its glacial pace. Housing-industry observers remain cautious about where the market is headed because prices have not stabilized and foreclosures accounted for a quarter of the 3,215 homes sold in Scottsdale through June, according to Arizona State University Realty Studies reports.
Scottsdale’s median-home price in June was $378,600, up less than 1 percent from a year earlier. But it was the first year-over-year monthly increase during the first half of 2010. The Valley median price in June was $147,500.
New homes are just a fraction of the Scottsdale housing market. The city has issued 100 single-family building permits from Jan. 1 through this week and is on pace for about 171 new homes in 2010. Last year, Scottsdale approved just 130 home permits, down from 3,100 a decade earlier. Pulte Homes and Lennar are building a total of 790 homes at Lone Mountain just west of Scottsdale Road. Most of the new-home permits are going to custom and green-home builders, said Michael Clack, Scottsdale’s director of development services.
Windgate Ranch, one of the city’s only large subdivisions, has several homes under construction, said Linda Rossi, Toll Brothers Southwest region marketing director. Toll Brothers has completed 237 of 633 planned homes since it started sales in March 2006 at the subdivision northwest of Bell Road and Thompson Peak Parkway. Prices start at about $500,000 for a 2,750-square-foot home, Rossi said.
It is quite the understatement to say that Real Estate has changed over the past few years. Arizona Loan modifications, short sales, and foreclosures have become common practice in the Real Estate and Mortgage Industry. With this change we have unfortunately seen more scams preying on desperate homeowners more than ever before. I have received numerous calls from homeowners who paid loan modification companies only to find out that these companies did nothing for them. In some cases, they did not even make contact with the bank! For some I was able to complete successful short sales, or direct them to non-profits to assist them with their loan modification. Sadly, for others it was too late.
There are a lot of companies, just run a Google search, that are offering loan modification services to homeowners in distress. While not all of these companies are fraudulent, it is critical to be educated on this process. Free assistance is available, which you can find information at:
On this website you can learn about the Making Home Affordable Plan, review the guidelines, find a HUD approved counselor in your area and more. Even if you do not qualify for this program, there still may be options for modification with your current bank/servicer.
Here are some things to look out for if you decide to use a loan modification company:
1. “Attorney-directed” vs. “Attorney-based”. An attorney based loan modification company may consist of former loan officers and processors, and while an attorney may be a phone call away—an attorney will not be personally handling or negotiating the file.
2. Charges a Huge up-front fee often without reviewing your file or being interested in your circumstances.
3. Is there an approval process? Approval should not be determined on the first phone call. The application process should include your budget, income, property information and hardship.
4. Get promises in writing. Verbal contracts are not legally binding. Make sure you read through the contract and understand what services are being provided.
5. Stop Foreclosure legally. A loan modification may take longer, and the home could go to foreclosure during this process if not handled properly.
You may also consult with an attorney for a small consultation fee before deciding how to best move forward. I have dealt with several attorneys who are competent and have a high success rate with Arizona loan modifications, as well as short sales. A consultation will typically cost between $100-$200 which is a small price to pay considering how much is at stake.
For a free report on your options to foreclosure, including loan modification and short sale visit: www.AZForeclosureHelpToday.com or call Jen Wehner at 480-748-6925.
You may have heard recently about Strategic Defaults, as this has been all over the news. A strategic default is when a homeowner chooses to walk away from their mortgage, even if they have the ability to pay.
The reason most homeowners choose a Strategic Default is because their home has dropped substantially below what they owe on their mortgage. Many homeowners believe it will take many years to recoup the value on their home, and are simply walking away.
Fannie Mae just announced that they are increasing penalties to buyers who just walk away. Fannie Mae wants to reinforce the importance to homeowners of working with their servicer. Walking away from a mortgage is bad for communities, and Fannie’s goal is to deter this behavior by locking out borrowers who do this for 7 years! They will also go after borrowers personally in states where they are allowed to do so.
One reason for many homeowners frustrations is the difficulty in obtaining a loan modification. Homeowners may not qualify, afford the adjusted payments, or simply do not get an answer in months–even over a year! 7 out of 10 homeowners never consult a realtor during this process, and may not know if a short sale may be more beneficial to them.
One alternative to foreclosure that I have had a lot of success with is short sales. A short sale is when a lender accepts less than the mortgage amount at closing. The homeowner benefits by getting out of the mortgage with much less damage to their credit than a foreclosure. In many cases homeowners who have completed short sales are eligible for a loan in 2-3 years, far less than the 7 years that Fannie Mae is imposing.
The mitigating factor between a short sale and a strategic default is whether or not the homeowner has a hardship. A hardship can be caused from a decrease or loss in income, medical/health issues, increased credit/debt, adjustable rate mortgage increase, increased living expenses, or lack of cash reserves. Most lenders will want to see some kind of hardship to consider a short sale, if not they still may agree to a short sale but might require the seller to participate in the loss. In some cases I have handled they have asked for no-interest promissory notes, or cash at closing.
There are certainly a number of different issues to think about when deciding if a short sale is the right option. For a free report on alternatives to foreclosure, as well as the latest programs and incentives, please visit :
If you are in need of a short sale on your home or condo in Scottsdale, Phoenix, Cave Creek, Fountain Hills, Carefree, Paradise Valley, Chandler, Gilbert, Mesa, Tempe, Glendale, Suprise, Peoria, Avondale, or Goodyear please contact me to discuss the process.
If you are outside Maricopa or Pinal County, Arizona I can help refer you to a local agent in your area that is experienced in short sales.
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You may have heard recently about Strategic Defaults, as this has been all over the news. A strategic default is when a homeowner chooses to walk away from their mortgage, even if they have the abili"/>
By now nearly every American has heard the term “short sale”, and most have a general idea of what they mean. There are also a lot of horror stories floating around. Most realtors who have been doing short sales for over a year could tell you at least a few! The fact is, a short sale in Arizona does require cooperation from the homeowner, which includes collecting documents, financials, writing a hardship letter, accommodating showings and more. Sometimes, a bank may go back and forth requesting additional documentation and explanations, ordering additional appraisals—all which involve the homeowner. Sounds like a lot of work, so why would a homeowner go through with a short sale instead of foreclosing?
You may have heard that the benefits include: the ability to obtaining future financing in a much quicker timeframe and credit score & credit history benefits. In addition, doing a short sale in Arizona is extremely important for homeowners who need a Security Clearance such as police officers, military, CIA, as security clearances may be revoked with a foreclosure. Many employers now also run credit checks, in which a foreclosure may challenge possible employment.
Our office recently got a call from a couple who had relocated here to Arizona from the East Coast. There move was a necessary one due to a job transfer, and they were forced to go through a short sale in the state they moved from. They did remain current through the short sale process, which helped save their credit score. When they arrived in Scottsdale, they immediately sought mortgage financing in an effort to buy a home instead of renting. They were very happy to hear that they would be able to immediately purchase a home due to the fact that relocation was necessary as well as they had no late payments.
Now that HAFA has been released, short sales may be even more favorable. HAFA, is a government program also known as the “Home Affordable Foreclosure Alternatives”. Here’s the short and sweet of it: HAFA offers incentives to lenders and homeowners who avoid foreclosure through short sales and deeds-in-lieu. HAFA also sets timeframes that ensure lenders don’t drag their feet in responding to homeowners.
These two aspects of HAFA will be motivating a lot of homeowners to fight foreclosure. Knowing how badly widespread foreclosures can damage a community, I hope the program is well received.
To answer the question, I do believe short sales are worth it. I believe the benefits of a successful short sale far outweigh the hassle of the paperwork. In Short Sales, the Homeowner is in control over the transaction—unlike in Foreclosures where the Bank is in the driver seat. With the process getting more streamlined and organized, we should see short sale transactions go much smoother. The last short sale approval I got (GMAC) was a little over 2 weeks!
If you want to find out who is eligible for HAFA, or if anyone you know is facing foreclosure and needs qualified assistance, please contact me right away. I also have a report available at http://www.azforeclosurehelptoday.com with the solutions that can help.
When I first entered the Arizona real estate market as an investor agent in 2003, it was to work with both fix & flip investors as well as long-term investors. It was a much different climate than, as you probably already know, and properties with good profit margins were relatively easy to find on the MLS. The simple process included inputting certain keywords such as “bank-owned, needs TLC, fix-up, foreclosure etc.” and running daily searches. We did not focus on a particular area, and would valuate 10-20 properties a day that met this criteria. Needless to say, this tactic no longer works in today’s real estate market. If you were to type in “bank-owned”, you may be valuating 200+ properties a day, and banks today are not always selling below market value. The competition has heated up, therefore tweaking my business model was a necessary move.
Trustee sales have always been a lucrative tool for investors in Arizona seeking fix-n-flip homes, as well as “buy & hold” investors looking for good deals. Navigating through the process however, can be quite challenging. Many companies in the valley offer bidding services, however not all companies are created equal. A lot of companies may keep the prime properties to themselves or exclusive group of investors, others may not research title and ensure you are bidding on a first mortgage, and most do not offer the level of involvement that can be the difference of winning…. or losing. I saw the opportunity as a Real Estate agent for a niche that would benefit investors, while expanding my own real estate business.
I have partnered up with a bidding service, ibidAZ, that offers bidding services for investors in Arizona that entails different levels of involvement. The first level caters to the seasoned investor, and provides daily lists of trustee sales scheduled for the next day, access to daily top picks, title search & lien position verified, and bid proxy at the auction. The second level caters to the more passive or novice investor and includes all of the services of the first level plus inspecting the property, evictions, rehab, and marketing and selling process—with 25% profit share. As a real estate agent, I would be able to give my investor clients a big edge over the MLS, all the while making sure that resale values are realistic. I would also be able to help market and sell their property, using my intense internet campaign and experience with investment properties.
The opportunity to invest in trustee sales in Arizona will not be here forever. When foreclosures slow down and banks start setting higher bids due to declining inventory—trustee sales will start to become less profitable. In the boom years, purchasing homes under market value was next to impossible, and I have personally never seen a better time to invest in real estate.
I met with the Reyes family at their Phoenix area home after they had been turned down from a loan modification. With a trustee sale looming only 3 weeks away, they were very frustrated and unsure of what their options were. After a substantial decrease in income, they were no longer able to afford their monthly payments, and tried to work with the bank on lowering their payments. Unfortunately their loan modification was denied, and they were unsure of what their next move would be. They did want to own another home in the future, and did not want to have a foreclosure on their credit. I met with them, and explained their options, and they decided a short sale would be the best route.
We priced the Phoenix property below market value, though still at a value that fell within the range of recently sold homes in the neighborhood. We received 3 offers over the weekend, and submitted a full short sale package with the accepted offer. HSBC, which was the bank servicing this mortgage, acted quickly and approved the short sale within 2 weeks. They also included $2500 relocation assistance to help the seller move which was very beneficial.
Not all short sales move this quickly and smoothly, but including a full package, pricing the property correctly, and following up diligently are key to successful short sale transactions. The Reyes were happy to avoid foreclosure, and plan on purchasing another home in Phoenix in 2-3 years.
If you or somebody you know may benefit from receiving information on alternatives to foreclosure including loan modification and short sale then click this link right now: www.AZForeclosureHelpToday.com
Short sales are becoming an increasingly larger portion of the market here in the Scottsdale and Phoenix areas, with short sale closings accounting for 21% of all closings in April of 2010—up from 9% in April of last year. There were 34 successful short sales closed this April with price ranges from $600,000-1.65m. There is a clear trend that more luxury homes are entering the distressed market.
The Scottsdale and Phoenix Luxury home market has been affected by rising interest rates on jumbo loans, limited loan availability, and increasingly strict requirements in qualifying for loans. According to the National Association of Realtors, inventory on homes priced above $750,000 has risen from 18 months in 2007 to a 40-month supply in 2009. NAR also reported that the foreclosure rate on jumbo loans was nearly double the rate on conforming loans ($417,000 and below).
The sluggish economy, lack of opportunities to refinance, the growing inventory of luxury homes, and fewer qualified buyers has created a titanic problem for luxury homeowners who need to sell but can’t.
Where do luxury homeowners facing these problems turn to?
There are government programs to help homeowner in distress including the HAMP for loan modifications, and HAFA for short sales. Homeowners with higher loan balances may not qualify for these programs, but most servicers are willing to follow similar processes to minimize losses. Typically a short sale will cost a bank an average of $40,000 to foreclosure rather than short sale, which includes legal fees, depreciation, and carrying costs. This FREE help is available to residents of Scottsdale and Phoenix facing foreclosure.
It is critical for homeowners to understand their options, and should contact a professional who is educated with the foreclosure process, as well as government programs, anti-deficiency laws, and short sales. I have created a website with free information for consumers on alternatives to foreclosure, and am always here to answer any questions or concerns.
If you are searching in the beautiful Scottsdale, Arizona area you should know that Scottsdale Arizona real estate agent Jen Wehner is ready to help you with your next real estate transaction. She will work with you to find the perfect match when it comes to a home you may enjoy for the rest of your life.
If it is a vacation spot you seek, or perhaps a second home, she will be there to assist, as well. She has her finger on the pulse of what is going on in this market.
For bargain homes and short sales, Jen is well versed in getting a closing to happen quickly and for sales prices that simply make sense for her buyers. Sometimes these can be complicated transactions, but she will be able to simplify matters, and cut to the chase. She has a way of making things happen fast in a seemingly slow paced world. When some Realtors are waiting for answers and action, Jen is taking action and making things happen. It’s no coincidence that she was #1 producing Scottsdale Realtor with an astonishing 45 successful transactions in 2009 alone.
For Scottsdale and Phoenix area investment properties, Jen Wehner will be able to show you a plethora of properties that you can use to increase your income, net worth, and provide for retirement. Whatever your preference may be, whether it is luxury homes, first time homes, investment properties, or apartment buildings she has the knowledge of the listings that will make sense to invest in.
Jen Wehner has a persuasive way of extracting the financial information from the sellers, and this can only be the best way to inform you about a future investment.
When it comes to luxury real estate in the Scottsdale and Paradise Valley area, there is no shortage of that. This beautiful landscape shows various luxurious homes and properties that will take your breath away. Of course, if you have a luxury property to sell, Jen Wehner would be the one to list it for you and effectively market it for sale. This top producing Scottsdale Arizona real estate agent/broker is ready to help you buy or sale real estate today.
Learn more by calling Jen Wehner right now, day or night, at 480-748-6925
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Two things historically hold true when it comes to investment dollars floating around Arizona. In the best of times, investors jump full force on the real estate bandwagon — most recently financing everything from subdivisions in far-flung cities and towns to urban condos in downtown Phoenix and Tempe. In the worst of times, investors also gravitate toward real estate, seduced by the lure of bargain buys on foreclosed homes and commercial properties as they bank on population growth to help Arizona’s economy rebound.
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