Phoenix AZ Renters should request Landlord’s Credit Report
November 30, 2008
“Sharks smell blood in the water.”, I think that is how the old saying goes. Unfortunately, this old proverb is all too real in today’s Phoenix real estate market. When people struggle, hustlers, sharks and scam artists show up to try and take advantage of fear and suffering.
Phoenix AZ real estate is down more than 30% in the last year alone. Phoenix AZ real estate prices have (for the most part) retraced gains and are now back at 2004 prices. As a result, there are many homeowners who are weighing the decision to walk away from their mortgage and let the home be foreclosed upon.
Phoenix AZ homeowners who are facing a short sale, ask themselves “why pay??”
Due to the financial straits, some owners are crossing the moral ethical boundaries are making bad decisions to take advantage of their banks/lenders and other innocent individuals.
Homeowners who purchased Scottsdale AZ real estate investment properties are offering the homes for rent. The problem is that they are not telling their tenants that they are already behind on their mortgage and a foreclosure proceeding is imminent.
A new scam is popping up and want to make sure Phoenix AZ real estate agent s and Scottsdale AZ real estate buyers or renters are aware.
Would be landlords are offering their home for rent at a deeply discounted price. Here’s a story ….
- The Scottsdale AZ rent analysis shows that the home would rent for $2,000/month
- The landlord offers the home for rent for $1,400
- Excited renters race for the right to get such a great deal
- The landlord asks for a credit report
- The landlord tells the buyer that due to the credit report they require 6 months rent paid in advance
- Apparently, this does not violate any laws on security deposits
- The renter, thinking it is such a great deal, is happy to oblige
- The renter also pays 1 month security deposit and (1/2 months rent) $700 in damage deposit
- $10,500 total cashier’s check would be paid for the above
- The renter was happy to do so in order to get such a great deal.
- What’s the big deal, would pay that money anyway? Right ?? Wrong!
Apparently, within weeks of moving into the home, foreclosure notice appeared on the door. When the tenant called the landlord, the phone number was ‘No longer in Service”!
The tenant went to the home of the landlord which they were able to find from public tax records only to find that home had been abandoned with foreclosure notices on the door.
Within 30 days, the bank had foreclosed upon the home and sent a sheriff to give notice to the tenants to move within 48 hours.
This is a horrible story. The tenant has no money to pay for movers or pay for first month, last month and security deposit at a new place. For the time being, the nice family is moving in with parents.
Yes, these wronged people will file suit. They expect to and will likely win. But, that does them no good today. And ultimately, they hold little confidence that they will be able to collect money from people who have 2 homes in foreclosure and likely have none themselves.
This may sound a little sarcastic, but we have entered an age of Tenants asking for a credit report from landlords. Make sure you work with a Phoenix AZ real estate or Scottsdale AZ real estate agent who is experienced with landlord / Tenant rights.
Make sure you have your Scottsdale AZ real estate agent help you request a credit report and a proof of the mortgage being current.
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Copyright © James Wexler * Phoenix AZ Renters should request Landlord’s Credit Report *
If you are listing your home as a short sale in Phoenix Arizona or Scottsdale Arizona make sure you hire an agent who knows how to do short sales and has the experience to get the job done.
Call 480.221.8080 to find out more about Phoenix AZ Short Sales and Scottsdale bank owned homes
There is no benefit to Short Sales !
November 29, 2008
I love talk radio. I listen to news, political and business talk radio all the time. On Saturday (today), local talk radio shows are more prevalent as they take over the air-waves that are mostly made of nationally syndicated talk radio shows during the business week.
Today, As I was driving home from breakfast this morning, I was listening to financial show talk radio. Much of the conversation was about the Phoenix real estate market. Topics ranged from Phoenix real estate prices, mortgage lending, mounting Phoenix AZ foreclosures and Phoenix AZ short sales. 
Today, there was a guest speaker who was , by his own admission, an expert in helping struggling Phoenix AZ real estate owners with short sales. In fairness, there is no fee , out of pocket, for the home seller. Ultimately, he was a Phoenix AZ real estate agent who would list the property for sale with the hope of earning a commission upon a successful sale.
An honest service? Yes! A good service? Well maybe. Here’s why.
For the vast majority of homeowners selling short, there is little benefit. Yes, sellers avoid a foreclosure. However, in 99% of cases, the seller still has ruined credit. The seller still has to move out of the home. The seller gets no money from the sale. In fact, (in almost all cases ) the only beneficiaries to a short sales are the buyer who are usually getting a great deal and the real estate agents who earn a commissions.
There are exceptions to this rule, of course. If you are not behind on your mortgage and continue to pay until the home is successfully sold short, you can avoid late payments on your credit. You also avoid what some feel is a social stigma of a foreclosure. I personally do not see that as a problem. However, some people do.
If you are a homeowner and want to stay in your home, there is little value to a short sale. If you are suffering a financial hardship or have a mortgage with a large rate adjustment try a loan modification. A loan modification is an option for borrowers to stop foreclosure, stay in their home by offering a permanent change in one or more of the terms of a mortgagors loan which allows the loan to be reinstated and results in payment the mortgagor can afford.
If you are a Phoenix AZ real estate investor or a Scottsdale AZ real estate buyer, short sales provide a great opportunity to get teh deal of a lifetime. Make sure the short sale is approved with the bank. Otherwise, I recommend you look to bank owned real estate (REO) or lender owned properties.
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Copyright © James Wexler *There is no benefit to Short Sales !*
If you are listing your home as a short sale in Phoenix Arizona or Scottsdale Arizona make sure you hire an agent who knows how to do short sales and has the experience to get the job done.
Call 480.221.8080 to find out more about Phoenix AZ Short Sales and Scottsdale AZ short Sales
Loan Modification Package - Hardship Letter example
November 28, 2008
Phoenix AZ real estate and Scottsdale real estate has been declining in value. As a result, lenders have been less willing to loan money to refinance homes. Thus, foreclosures numbers are rising and banks are taking possession of real estate called lender owned real estate (REO).
In order to combat growing inventory of bank owned homes, banks have established (with some pressure from our Federal government) loss mitigation programs to keep borrowers in their homes and stop foreclosure.
Currently, loan modification is an option for borrowers to stop foreclosure, stay in their home by offering a permanent change in one or more of the terms of a mortgagors loan which allows the loan to be reinstated and results in payment the mortgagor can afford.
In order for most banks, if not all, to accept a loan modification, you must be going through a personal hardship such as reduced work hours or unemployment… or are facing medical issues or even divorce. Also, bank will work with homeowners who have seen and interest rate adjustment or were victims of predatory lending.
A declaration of hardship is one of the most critical parts of a loan modification package and I wanted to include a copy of a loan modification hardship letter that was sent to me from an associate who has recently modified their loan with a major bank successfully.
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To whom it may concern:
I, John T. Borrower, would like a chance to explain my current situation. When I purchased this Home I planned to raise my kids here and stay close to my roots (my parents live less than 2 miles away) and live in this house for the rest of my life. When I singed the loan papers on the 2 year arm I was assured up and down that the value of my home would increase. I did not.
Matter of fact it’s gone down in value like a used car I am currently upside down. Now as you know my Interest rate has adjusted to______% and I will not be able to pay this high payment and buy food, clothes, Gas for my Trucks and utilities for my home. I have been pulling my hair out worried not sleeping trying to find a way to fix this problem.
Since 2001 I have ran my own business along with my Brother, Mom, and Dad a true Family operation. We do construction jobs in
Because of the down turn in the construction business in Arizona my work load has been cut more than 65% I no longer with several of my customers. Less then twice a month I will get work with others, but it is rare. I have been doing jobs like tire hauling a couple weeks out of the month too, but it doesn’t even come close to amount of work I used to have.
As a result of the poor economic conditions, I am asking for a modification on this loan from what I hear on the news, and research I have done the bail out money will be given to banks so that loan modification could be done.
Please help me keep my home I want to stay here. I know everybody has a story, but I think we can both win in this transaction.
Thank you for your time,
John. T Borrower
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I am not a loan modification specialist, please consult with an attorney or CPA.
If you are considering a loan modification please ask for a referral of a loan modification company that has been successful for borrowers.
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Copyright © James Wexler *Loan Modification Package - Hardship Letter example*
If you are listing your home as a short sale in Phoenix Arizona or Scottsdale Arizona make sure you hire an agent who knows how to do short sales and has the experience to get the job done.
Call 480.221.8080 to find out more about Phoenix AZ Short Sales and Scottsdale AZ short Sales
A lot to be thankful for !!
November 27, 2008
It is has been a trying year for Phoenix AZ real estate owners. Even Scottsdale AZ, normally an island unto itself, has seen the affects of an ailing greater Phoenix AZ real estate market. 
If you are reading my blog, Phoenix AZ real estate is important to you. And speaking for myself and co-workers, the Phoenix AZ real estate market is the proverbial ‘rising and setting sun’ to our daily lives. I am not so short sighted that I don’t realize this narrow view of the world. There are clearly many things more important life than Phoenix AZ real estate.
Here are my Top Things for which to be Thankful!! …. in no particular order …
- The stock market is not open - what a relief. At least today, it cannot be down.
- Thanksgiving Football - one day of the year that my significant other is happy to watch 8 hours of sports
- Capitalism - we still have the opportunity to do, create or be anything we want
- Socialism - we still find a way to share our success with those who are less fortunate
- Barack Obama - I didn’t vote for our next President. Though, I wish I had. He offers a renewed sense of optimism and a burning Hope that we can better and that things will be better
- Pets - no matter how bad the economy is beating us up, our dogs and cats are still happy to see us when we get home
- Family, friends, - no matter what your home appraises for, they will always come fill it with warmth and love
- #1 - The brave men and women of our armed services. Without there loyal, brave and mostly thankless duty we would not be so fortunate to have any of these other wonderful things on the list. THANK YOU!!!
Thank you so much for reading, contributing, commenting and making my personal and professional life richer.
A very HAPPY THANKSGIVING to you and your Families!!!
- james wexler
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Copyright © James Wexler *A lot to be thankful for !! *
If you are listing your home as a short sale in Phoenix Arizona or Scottsdale Arizona make sure you hire an agent who knows how to do short sales and has the experience to get the job done.
Call 480.221.8080 to find out more about Phoenix AZ Short Sales and Scottsdale bank owned homes
Wealthy buyer cannot buy Peoria AZ home with 10% down
November 26, 2008
Recently, there has been loud complaints of the accelerated price decline of Phoenix AZ real estate. Although opinion differ what is the problem, no one can deny that there are several problems contributing.
Experts point towards mounting inventory of Phoenix AZ homes for sale, rising unemployment, the large number of foreclosures, poor management of loss mitigation at banks and tightened credit or lack of mortgage lending from banks. 
My personal, and humble, opinion is that there is an obvious unwillingness by banks to lend money. They banks now have the money. However, due to poor language and instructions when our Congressional leaders drafted the American Homeowner Rescue act which is better known as the $700 Billion Bailout! The language or lack thereof, allows banks to borrow the money from the Government which means the good paying U.S. taxpayer. Though, it does NOT mandate that they need to actually lend the money to qualified borrowers.
As a result we have (virtually) no money for buyers to use to do what this was supposed to do; Buy Homes!
The banks claim otherwise. However, I strongly believe that the reason being that if home prices continue to drop, homeowners are less willing to pay their mortgage if financial problems arise as the home is worth less then they paid. The can simply , and often do, just walk away from the home. Thus, the banks foreclose on the homes and lose money.
So until prices stabilize there will be now money. Here is an example of a personal story that paints a picture of the problem.
A hard working couple was pre-approved to buy a home priced at approximately $500K.
- Both husband and wife are pharmacists
- combined income of nearly $200K.
- Credit score over 680.
- No other debt.
- $50K savings
- $10K in checking
- 401K assets over $100K
- Made and offer for the home which was accepted.
- However, the bank/lender told the borrowers that they needed more than 10% down.
- Borrowers have the money.
- Due to a child in College, they do not want to use more than the $50K in savings.
- The lenders declined the loan!
What a shame for the buyer who wants to buy a home to realize the American Dream, raise a family and build a nest egg for their future. The ripple effect does not stop there. A seller cannot sell. Parties facilitating the transaction including, but not limited to, real estate agents, mortgage brokers, title and escrow companies, appraisers, banks (who make money lending), inspectors, movers, etc….. do not earn money which they can and do spend in the economy.
The problem is cash. Buyers don’t have it or do not want to part with it until the economy strengthens. Interest rate cuts help. However, that is not the problem. Banks are simply too fearful of lending to even the best borrowers without large down payments.
Bottom line, until we can get these banks to lend we will not see any recovery in the economy.
I am optimistic that a new draft with language that either mandates lending or insures loans by banks will have the intended effect of the original legislation, stimulate housing and the foundation for an economic recovery.
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Copyright © James Wexler *Wealthy buyer cannot buy Peoria AZ home with 10% down *
If you are listing your home as a short sale in Phoenix Arizona or Scottsdale Arizona make sure you hire an agent who knows how to do short sales and has the experience to get the job done.
Call 480.221.8080 to find out more about Phoenix AZ Short Sales and Scottsdale bank owned homes
Hank Paulson reads my Phoenix AZ real estate blog
November 25, 2008
I guess someone is listening. Or, at least, someone is reading my Phoenix AZ real estate and Scottsdale AZ real estate blog. Ok, Ok, maybe I am being a little overzealous with my readers. However, to make myself feel better, I will take credit for the following.
Yesterday, I wrote a story disputing a real estate expert who claimed that foreclosures are not the problem facing Phoenix AZ real estate. I argued that foreclosures are the problem because until foreclosure stop dragging down prices, banks will not feel 
comfortable lending.
As a result, dropping prices affecting availability of mortgage rates with reasonable down payments are the problem. Buyers are more and more reluctant to part with down payments averaging more than 10% of purchase price, or more often do not have the cash on hand at all.
Today, the S&P Case-Shiller Home Price national index recorded a 16.6% decline in the third quarter compared with the same period a year ago. According to a news report, “With foreclosures soaring at record rates, the economic picture dimming and job losses ramping up, all the elements were in place to push prices lower.”
This news paints a picture why banks will simply not lend money to (virtually) anyone without 20% down payments (there are exceptions.) The reason being that if home prices continue to drop, homeowners are less willing to pay their mortgage if financial problems arise as the home is worth less then they paid. The can simply , and often do, just walk away from the home. Thus, the banks foreclose on the homes and lose money.
In order to combat the liquidity problem, the Federal Government has made a bold move today and announced,
“The government has introduced a pair of new programs that will provide $800 billion to help unfreeze the market for consumer debt which Treasury Secretary Henry Paulson calls vital to supporting the economy.” Paulson says all “the government programs have been aimed at supporting the lending that is vital to the economy.”
I applauder the move by the FED and am optimistic that the incoming Presidency will continue to do everything in their power to protect banks by insuring loans, thus make mortgage loans available to qualified buyer, supporting purchase and sales of low priced foreclosures, clearing supply of homes and stabilizing Phoenix AZ real estate prices. Once, the bleeding stops, we can build a foundation towards a Phoenix AZ real estate recovery and a national economic recovery.
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Copyright © James Wexler *Hank Paulson reads my Phoenix AZ real estate blog *
If you are listing your home as a short sale in Phoenix Arizona or Scottsdale Arizona make sure you hire an agent who knows how to do short sales and has the experience to get the job done.
Call 480.221.8080 to find out more about Phoenix AZ Short Sales and Scottsdale bank owned homes
Stopping Foreclosures NOT the key to recovery for Phoenix AZ real estate
November 24, 2008
Phoenix AZ real estate is near the top of the list of price declines. Not a great title. In fact, a recent RL Brown report shows that most parts of greater Phoenix AZ real estate have now declined past 4 year lows, retracing all the gains of 2004-2005.
Scottsdale AZ real estate prices and Phoenix AZ real estate prices continue to slide as a result of
rising foreclosures. In fact, last month foreclosures actually outnumbered resales amounting to more than 50% of all sales.
Now, must of the experts argue that until foreclosures, which drag down prices due to their steep discounted prices slow down , prices will continue to slide. Nationwide, economists and politicians are doing everything they can to slow or even halt foreclosures.
The Housing Rescue Act is designed to stop foreclosures. Last week, Fannie Mae and Freddie Mac halted foreclosure for 90 days
to figure out how to modify loans in order to keep struggling homeowners in their homes and prevent more foreclosures.
The FDIC has proposed a plan to Congress that outlines details for loan modifications that will work with banks and lenders to prevent foreclosure.
So, it seems that stopping foreclosures IS the key to recovery for Phoenix AZ real estate. Right??
Well, yesterday, Craig Anderson, a highly talented and immensely respect writer for the AZ republic wrote a story disputing the above. Mr. Anderson cited a California foreclosure analyst and blogger, Sean O’Toole that “the biggest obstacle to market recovery could be rising interest rates” and “not the increase in foreclosures”.
I politely disagree. Banks do not want to lend because of falling home prices. Banks have to make mortgage products require larger down payments and higher interest rates to protect their loans that are less and less safe as prices continue to drop (due to foreclosures).
If foreclosures stop and prices stabilize, banks will feel much more comfortable offering loan products with manageable down payments.
In fact,with down payment requirements at 20% (for most people), they may even be paying less per month then a interest rate drop of as much as 1% on a 90/10% down mortgage or even a 955% down payment mortgage.
Bottom line, until foreclosures decrease and prices stabilize, banks will not ease credit.
I may even go out on a limb and say that Zero-interest rate policy (ZIRP) which has been discussed, would help some, but little. Banks could then lend below 2% on mortgage rates. Yes, buyers would be jump at the chance. Who wouldn’t ?? .
BUT, ….buyers would still need to come up with as much as 20% down payment. Think about it, 20% of a $250K home is still $50K!! Who has $50K that they can part with these days who wants to live in a $250K home??? These days, Very few!
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Copyright © James Wexler *Stopping Foreclosures NOT the key to recovery for Phoenix AZ real estate *
If you are listing your home as a short sale in Phoenix Arizona or Scottsdale Arizona make sure you hire an agent who knows how to do short sales and has the experience to get the job done.
Call 480.221.8080 to find out more about Phoenix AZ Short Sales and Scottsdale bank owned homes
Remember these 3 Tips before you buy that Scottsdale AZ home
November 23, 2008
As a Scottsdale AZ real estate agent, I interact with real estate buyers and sellers. As a result, you can imagine the range of emotions I hear on a daily basis. If you are a Phoenix AZ real estate owner or real estate investor, the emotions
range from shock to sadness to anger. I am sympathetic as I too am a home owner.
I do get to balance the frustration with buyers who feel that this is a once in a lifetime sale. Phoenix AZ real estate prices are down more than 30% in the last 12 months alone. Even town like Scottsdale AZ, Fountain Hills AZ and Paradise Valley AZ are down more than 15%.
Most buyers, are still nervous as cash is still king and buying homes requires as much, or more, than 20% down payments. However, for the most part, they feel like kids in a real estate candy store. They are licking there lips and getting ready to buy at deep discount, bargain basement, even going out of business (no pun intended) sale prices.
I want to encourage those who have been planning to buy and who can truly afford to buy to take advantage of a buyer’s market, deep discount prices, low mortgage rates, tax benefits to take a leap of faith and buy.
However, I also want to caution buyers to consider the following real estate buying rules so you don’t fall into a trap like many others have in the last few years.
- Don’t take on more house than you need to - one of the biggest mistakes that real estate buyers make is buying much more than they need and worse buying much more than they can afford.
- The impossible can happen - gas prices have gone down 60% in 4 months, the S&P 500 is down 45% for the year, real estate prices have dropped more than 30% in the last 12 months. These were impossible events to think could happen. Make sure you can afford what you buy and can afford to stay in the home for a long time.
- Diamonds are forever. Cash is not! - make sure you have sufficient reserves in the event of a prolonged recession, depression or emergency. If you don’t have at least 6 months of expenses in savings, dont buy!
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 © James Wexler *Remember these 3 Tips before you buy that Scottsdale AZ home *
If you are listing your home as a short sale in Phoenix Arizona or Scottsdale Arizona make sure you hire an agent who knows how to do short sales and has the experience to get the job done.
Call 480.221.8080 to find out more about Phoenix AZ Short Sales and Scottsdale bank owned homes
Camelot Homes - Buy low, Save High event in Scottsdale AZ
November 22, 2008
Scottsdale AZ real estate developer and luxury home builder, Camelot Homes is having their Buy Low Save High new home sales event where the builder offers you the opportunity to ‘buy the masterpiece’ for the ‘lithograph price’.
Camelot Homes says that you can save up to $300,000 off the retail price if you buy and close by the end of the year in any of their communities throughout the valley in North Scottsdale AZ, Chandler AZ, Peoria AZ and Goodyear AZ.
North Scottsdale AZ
- The Courtyards at Desert Park
- The Villas at Desert Camp
- The Verandahs in Silverleaf
Southeast Valley
- Watermark at Ocotillo in Chandler, AZ
- Windward at Ocotillo in Chandler, AZ
Northwest Valley
Sonoran Mountain Ranch in Peoria, AZ
- Canyons Edge
- The Ledges at
West Valley
- Cortile at Palm Valley in Goodyear AZ
Camelot Homes is offering beautiful homes at Cortile in Palm Valley, Goodyear AZ that are a selling at prices that we have not seen for years and likely will not see again in our lifetime.
The field models are being sold at what seem to be less then builder cost which is almost unheard of. For example, the Cortile Serenity series, in Goodyear, AZ was originally listed at more than $735,000. The save high, buy low sales event prices is $445,500 for this 3,852 sq/foot luxury home is . A saving so f more than $290,000.
Camelot Homes says,
“Take advantage of these one of a kind views with a HUGE backyard!!! Featuring TWO separate courtyards - this GORGEOUS home is perfect for the family that loves to entertain!!! The Gourmet Kitchen is a CHEF’S DREAM with upgraded granite countertops, Alder Wood cabinets and upgraded appliances!!! Vaulted ceilings in the family room and master bedroom add to the UNIQUENESS of this wonderful home! Price of home includes a $15,000 lender incentive. “
encourage you to speak with your real estate experts and industry professionals for detailed information before any buying decision.
There are 5 Model homes to visit. Mon-Wed 10am-5pm. Saturday 10-5. Sun 12-5. Closed Thursday/Friday.
Ask for Kellen Britt at the sales office and tell her James Wexler sent you.
I encourage you to visit the field models and sales office of any of the great new home communities from Toll Brothers in greater Phoenix AZ and Scottsdale AZ. The have great homes in builder inventory at prices we have not seen in many many years.
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Copyright © James Wexler * *
If you are considering buying a from a new builder in Scottsdale AZ or Phoenix AZ, hire an agent who knows the new home construction market in Scottsdale and Phoenix AZ and has the experience to get the job done.
Call 480.221.8080 to find out more about Phoenix AZ real estate and life in Scottsdale AZ
Stop Foreclosure! Save Your Phoenix AZ home for the holidays!
November 21, 2008
With Phoenix AZ real estate prices dropping, unemployment fears rising many Phoenix AZ homeowners are facing a tough decision. Borrowers are asking themselves, if they should continue to deplete long-term savings and pay their mortgage. A very scary question to ponder.
A new option as emerged at the forefront of those facing foreclosure. It is called a loan modification.
A loan modification is a permanent change in one or more of the terms of a mortgagors loan which allows the loan to be reinstated and results in payment the mortgagor can afford.
Loan modifications typically involve a reduction in the interest rate on the loan, a fixed rate mortgage vs. adjustable rate mortgage (ARM), the term of the loan, principal, interest and fees (the arrears ) added to the loan balance to bring you current. A loan modification can consist of any and or all of the above
Yesterday, Fannie Mae and Freddie Mac announced a plan to Suspend Foreclosures Until January 2009 While Streamlined Modification Program is Implemented.
Fannie Mae, Freddie Mac, Bank America and Chase Bank have all suspended foreclosures in most of the country for several months until they can establish loan modification departments to handle the massive amounts of borrowers requesting to modify their loans, avoid foreclosure and stay in their homes.
Fannie Mae and Freddie Mac , alone, expect to modify loans of more than 400,000 borrowers.
I am not in the loan modification business. However, I have advised struggling Phoenix AZ real estate owners to speak with an attorney and their bank to decide if a loan modification is right for them.
I wanted to share a story. A borrower, who is now almost 6 months behind on their payments for about $10,000 solicited the help of a Phoenix AZ loan modification company, who for a small fee has worked to negotiate a loan modification for the borrower.
The original terms where a 6 month forbearance. In the context of a mortgage process, forbearance is a special agreement between the lender and the borrower in order to delay a foreclosure. In this situation, the bank would request 20% of the monies past due “Arrears” paid immediately and then a fixed payment of 80% of the current loan amount for six months.
The client came back to the bank with an offer of $1,000 now and a 6 month payment of $1,300/month. The bank accepted.
In 6 months, if the client is paying on-time, the bank will review the current financial health of the borrower and offer a permanent loan modification.
Everyone is happy. Banks keep a client paying interest, prevent foreclosure and most importantly, the borrower avoid foreclosure and is home for the holiday.
If you are considering a loan modification please ask for a referral of a loan modification company that has been successful for borrowers.
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Copyright © James Wexler *Stop Foreclosure! Save Your Phoenix AZ home for the holidays!*
If you are listing your home as a short sale in Phoenix Arizona or Scottsdale Arizona make sure you hire an agent who knows how to do short sales and has the experience to get the job done.
Call 480.221.8080 to find out more about Phoenix AZ Short Sales and Scottsdale AZ short Sales
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