Top 5 reasons to buy a home

January 23, 2008

5 reasons to buy a new homeI call Arizona’s last 10 years the real estate ‘gold rush’ ….

where for the first time home buyers thought of getting rich and making money on their own and a place to live was secondary.

yes, a lot of money was made; and lost. However, let’s remember the

Top 5 reasons to buy a home. (the order is different for everyone)

  1. a Home is place to live
  2. enjoy tax benefits
  3. a fixed mortgage payment in time (rents typically rise with inflation)
  4. each month you save money by paying down your mortgage loan
  5. build a nest egg over time

Today’s home buyer is seeing opportunities that they may never have expected.

I encourage you to buy a home only if you can stay in your home for at least 5 years, put down at least 10% (20% is better) and get 30-year fixed mortgage.

If you can handle the payment comfortably then history has proven that you will build a nest egg while enjoying all the other benefits home ownership has to offer.

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Copyright © 2008 By James Wexler, All Rights Reserved. *Top 5 reasons to buy a home*

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

Written by James Wexler · Filed Under Articles, Builders | 1 Comment 

Lease Option vs. Lease Purchase

January 15, 2008

Phoenix and Scottsdale area lenders are tightening their lending practices. It is increasingly more and more difficult for home buyers to get loans.lease-option.jpg

Now 100% loans, or ‘majority financing‘ is a very limited option, buyers and sellers have to be creative to get real estate transaction closed.

There are 2 strategies that may work; The Lease-option and the Lease Purchase.

A common name you may here these referred to is “Rent-to-Own” .

I have to recommend that you do not attempt this without the advice of an experienced attorney and/or real estate professional.

Lease option - “contract in which an owner leases her house (usually for one to five years) to a tenant for a specific monthly rent, and which gives the tenant the right to buy the house at the end of the lease period for a price established in advance”

Lease Purchase - “a Lease to Purchase contract combines a basic lease contract with an option to purchase contract, which creates a Lease to Purchase contract.” The main difference being that the lease purchase contract, the Buyer is obligated to buy; if not, the buyer would likely be in breach.

Again, both contracts can provide language where a portion or all of the rent payments can go towards the purchase of the home. Thus, allowing the buyer to accumulate down payment to more easily obtain a loan.

Hire a real estate attorney or experienced real estate professionals who can prepare documents, explain and protect your interests.

Here are the names of a few real estate professionals with whom you can speak.

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Copyright © 2008 By James Wexler, All Rights Reserved. *Lease Option vs. Lease Purchase*

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

Written by James Wexler · Filed Under Articles, Buyers, Sellers | Leave a Comment 

SHORT SALE … the new ‘Sub-prime’

January 5, 2008

Short Sale may be replacing ‘Sub-prime’ as the word of the year for 2008

short sales explained

so, what exactly is a short sale in Real Estate?

Selling short , or a ‘short sale’ means offering (and a lender accepting) lesser amount than money owed to the bank.

The good:

  • salvage credit (potentially) and possibly avoid bankruptcy, ….
  • Lender avoids a potentially larger loss and does not have to take ownership in their (REO) eal Estate Owned inventory

The bad:

  • consumer gets a 1099 for taxes due on the discharged amount.
  • Banks do not get to collect insurance from the PMI (private mortgage insurance) companies

Here’s what is required to get a short-sale approved by a bank. (a cursory explanation)

  • Call the lender and speak with a short sale specialist
  • provide a written ‘hardship’ letter
  • Estimated Net proceeds sheet - sale price minus selling costs
  • Bank Statements, tax returns, 1099, etc to prove hardship
  • Listing Agreement and/or Purchase Agreement

Not all lenders will accept short sales. In fact, most ‘Short Sales’ have not been approved.

Finally, there are tax consequences to selling in a ‘Short-Sale’, so consult your CPA before you attempt a ‘short-sale‘.

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Copyright © 2008 By James Wexler, All Rights Reserved. *SHORT SALE … the new ‘Sub-prime’*

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

Written by James Wexler · Filed Under Articles, Short-sales / Foreclosures | Leave a Comment