Real Estate Buyer Nightmare in Phoenix AZ

September 30, 2008

We all know that it has been a difficult time for Phoenix Real estate. Homeowners from Mesa to Scottsdale to Peoria are having a difficult time selling homes. As a result, values of homes in Phoenix area have dropped as much as 30%.

To make matters more difficult for Phoenix area homeowners the fallout of the sub-prime debacle is a credit crisis that has seen lending giants Fannie Mae, Freddie Max and Lehman Brothers virtually bankrupt. The result is a lack of liquidity or funds to loan to Phoenix real estate buyers.

I wanted to share a story of a buyer’s nightmare in Phoenix.Real Estate Buyer Nightmare in Phoenix AZ

Mr. & Mr. Phoenix home buyers (”The Buyers”) were in escrow for a $1 Million home in North Scottsdale. As would be required,  The Buyers were pre-approved for a jumbo loan at the time the offer was accepted and escrow was open.

The Phoenix home buyers were approved for their stated income loan with 20% down payment as a result of a 720 FICO score and more than $1 Million in cash, stocks and bonds in the bank.

As the close of escrow approached, the lending institution reviewed the loan package in what is now referred to as ‘quality control’. The bank (lender) , noticed that the buyer’s FICO score had dropped to 709. This new FICO score was below the (720) minimum requirement for the banks loan parameters. As a result, the bank told the Phoenix Real Estate buyers that they would now require 30% down payment. That is $100K more down payment money than expected. As if that was not frustrating enough, the new interest rate was nearly 11%.

The Phoenix real estate buyers decided to cancel the contract. Thus, one less Scottsdale real estate purchase and one less Scottsdale real estate sale.

Phoenix home buyers and Scottsdale real estate investors with top tier credit credit ratings and assets are not getting approved to buy homes in the greater Phoenix real estate market.

The above Phoenix real estate nightmare for home buyers and home sellers goes to show the need for a rescue bill or housing legislation package that adds liquidity to the credit markets so Phoenix real estate and the housing economy across the country can recover.

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Copyright © James Wexler *Real Estate Buyer Nightmare in Phoenix AZ *

Call me for a private tour of  homes in Paradise Valley or Scottsdale or  to learn more about life in Scottsdale and living in luxury communities in  Scottsdale.

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

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Written by James Wexler · Filed Under Articles, Buyers 

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