Distressed Properties - The good bad and ugly

The Arizona real estate market, like many others, continues to change at a rapid pace. While the trend is currently looked at by many as "distressing," there are those who look at this market as an opportunity to purchase real estate in an environment of low interest rates and at price levels not seen for quite some time.

One of my long time "partners" in the real estate business is Fidelity National Title. For those of you that have worked with me for a long time, you might be familiar with them. Recently, I got some very interesting statistics from my friend, Jennifer Weller, an account rep for Fidelity. We discussed some of the current issues banks are dealing with when handling distressed properties.


1. 40% of the subprime loans written in '06 & '07 had no income verification.

2. Chase has a new program that if you lose your job-they will reduce your payment to $500 for months to help homeowners not lose their home.

3. It costs lenders on avg 75-125k per bank owned property.

4. fannie mae loan-primary residence...foreclosure=ineligible for 5 yrs for a FMae mortgage, short sale=2 yrs

5. investor ineligible for a Fannie Mae loan for 7 yrs in Foreclosure, short sale=2 yrs

6. foreclosure lowers credit 250-300 pts for avg of 3 yrs...and stays on credit for 10+ yrs
These 6 items are from Jen's "Twitter" feed while attending a seminar. I hope to go over the details with her in the near future and will gladly update you with any questions you might have. We will be reviewing the notes and updating / adding to the information in the near future.
As in every market, it is best to understand and make good educated decisions before buying or selling. There is always a seller that wants to sell and a buyer that wants to buy.
Let's discuss your situation before you decide to make a move. As always, I'll give you my honest opinion of your current situation. If it makes sense for you to make a move, I am happy to assist. If it doesn't, I will be glad to tell you so.

If you just want to "get a feel" for prices of homes in an area, (including foreclosure lists) you may visit my FREE map-based home search page to begin the process. As always, remember to "Just Call Nick" with any questions or comments!

Mill Avenue District is "Growing Up."

The many new developments in Tempe are fun to watch. From Mosaic to Centerpointe to the new Monti's projet that we recently wrote about, the Mill Avenue District is really "growing up." Soon, the Valley's Light Rail system will travel right through the community. If you haven't been down there lately, you will be amazed. If you have, you can't help but notice how "alive" the area is. People of all walks of life enjoy this area. From the Arts Center to small coffee shops to million dollar condos with HOA fees in the $1100.00 per month range! :-) The park, the lake and near by hiking at "The Butte" / "A" Mountain are all things that people love as well. I found this cool video that shows some of the many existing and proposed changes in the area.Take a look!

Monti's La Casa Vieja - Times are a changin'

Last night, the latest redevelopment plan for the historic Monti's La Casa Vieja Steakhouse finally got the blessing of Tempe's Historic Preservation Commission . This latest conceptual plan will now go in front of the Development Review Commission and the City Council in the coming weeks. Sounds like Sky Harbor officials (that didn't like the height of the stadium) will also throw in their 2 cents. The location of this place has been called the gateway to Mill Avenue and will serve as kind of a breaking point for the events at Tempe Town Lake and the bustling Mill Avenue District. These two areas are separated by the light rail stop at Third Street and Mill. Once the rail line opens, this area is sure to see even more interest. Several major developments are in the works within a short distance. (I'll be writing about them in the near future)
I am personally glad that the main part of the original building will be left alone as I have enjoyed many trips to Monti's with family, friends etc. It will be interesting to watch and see what the final outcome produces. I'll be sure to let ya know..

Why Live on the Edge If You can Live on the Line?

There is an interesting dynamic coming to the valley... It's called Light Rail... You have probably seen it "gaining steam" in the news lately as it comes closer to reality for Arizona. I recently attended a meeting with city and national planners of the light rail line to gather some more information. There is some real economic potential here for people and businesses alike. Currently, there are approximately 3000 businesses located along the rail line that consists of 5 "sections" covering 20 miles from Phoenix, through Tempe and in to Mesa. The ASU facilities in Tempe and Phx will be easily accessed as well as major and college sporting events of the Suns, Diamondbacks and Devils. There are already many large employers along the line as well as some great restaurants and a ton of different types of housing near the light rail route from the affordable to multi million dollar projects. Several large projects are in place along Central Avenue that have completion dates scheduled for 2008 which just happens to coincide with the scheduled opening of the rail system.

With the struggles and inventory issues of Queen Creek, Maricopa and some of the outlying areas, there may be a shift to properties with easier access to more centralized locations.
Tempe, Scottsdale and much of Central and North Phx still appear to be doing "pretty well" as far as sales and demand. Light rail should bring some interesting changes to our growing core. As always, I'll be keeping a close eye on the valley's real estate market so check back often for more updates... Remember, if you have any real estate related questions.. "Just Call Nick!"