Arizona Real Estate Specialists

• Large Custom Home
• 7 Bedroom, 3.5 Bath
• 1.65 Acres
• Pool
• Horse Privileges
• Excellent Schools

Chuck Willman | Gentry Realty | 480.292.0600 2156 E. Hackamore, Mesa, AZ Seven Bedroom, 3.5 Bath home on 1.65 Acres in highly desirable neighborhood. Enjoy the pool, bring your horses. Rural living near all the city amenities. 7BR/3.5BA Single Family House offered at $700,000 Year Built 1974 Sq Footage 4,183 Bedrooms 7 Bathrooms 3 full, 1 partial Floors 2 Parking 2 Car garage Lot Size 71,979 sqft HOA/Maint $0 per month see additional photos below PROPERTY FEATURES Central A/C Central heat Fireplace High/Vaulted ceiling Walk-in closet Tile floor Family room Living room Bonus/Rec room Office/Den Dining room Breakfast nook Dishwasher Refrigerator Stove/Oven Microwave Granite countertop Basement Laundry area - inside Balcony, Deck, or Patio Yard Swimming pool OTHER SPECIAL FEATURES Horse Property, Diving Pool, Great Schools, Quiet Neighborhood, Quick Access to the City & Freeways. ADDITIONAL PHOTOS Seller contact info: Chuck Willman Gentry Realty 480.292.0600 For sale by agent/broker Equal Opportunity Housing Posted: Sep 29, 2008, 2:31pm PDT

What is a Short Sale?

This is a basic primer for persons wishing to purchase a property via short sale. First of all, what is a short sale?

Homes that are being sold as a short sale are in a unique situation. Usually they are homes with debt that exceeds the current market rate which are being sold at a price lower than that which is owed to the lender. These properties may also be considered to be in pre-foreclosure.

There are many homes on the market today that fit this definition. Since such homes tend to be priced lower than many other properties, it's important to know a few questions to ask the agents representing a short sale.

1. How long has the home been listed?

2. Is there more than one mortgage?

3. Has the bank approved a price?

4. Is there a foreclosure date set?

Banks will entertain offers on such properties. Any offers made on short sale homes will be sent to the banks for approval. The bank may take a great deal of time to consider offers. Any offer made could take several days (even months) before the bank decides to accept an offer. For this reason, realize that it's important to know how long the home has been listed. Newly listed short sales are at the beginning of the process. Typically it will take longer for the bank to respond to newly listed home.

If the home has more than one mortgage, additional lenders require additional time. While one bank may accept an offer, another bank will want a payoff as well. Where there are multiple mortgages, more negotiation time will usually be required.

When a bank has considered one or more offers, there will be a higher likelihood that the bank has found a comfortable price. Sometimes the bank will allow an agent to publicize this price. If the bank has approved a price then the person making an offer will be better able to know the bank's comfort zone.

If there is a foreclosure date, banks will probably become more negotiable as that date approaches.

I'm a real estate agent who represents sellers and buyers. Many of the properties that I represent are in a short sale position. I highly recommend that buyers seek competent agents to help guide them through this process.

-------

Photo Credit: "What's That??" by Adam Ciesielski

Regarding the Bailout, The finger pointing continues.

As Congress is mulling over terms of the bailout, the point I find interesting is that so many people are looking to take action against whomever they can discover benefited from the run-up.

The actions of certain institutions are very much suspect and are currently being investigated. Here are a few articles that go into greater detail... I'd like to highlight a few points showing up in the media with regard to the rescued parties. Spoiler alert- people want someone to pay for this mess.

In Experts See a Need for Punitive Action in Bailout, Peter Goodman of the New York Times states that "Others argue that any bailout must pinch the people who have run the companies now needing rescue, along with their shareholders, addressing the unseemly reality that executives have amassed beach houses and fat bank accounts while taxpayers are now stuck with the bill for their reckless ways."

Yesterday, Mike Nizza of the New York Times followed the bailout hearings in a live-blog format. Here's an interesting moment: "Working the Hearing Room | 10:06 a.m. So far, each senator has spent some time railing against Wall Street, but Senator Mike Enzi’s criticisms earned several rounds of applause in the hearing room before Senator Dodd brought down the gavel. After threatening to “clear the room” if they didn’t settle down, he demanded silence. “This is a serious hearing,” Mr. Dodd said. Mr. Enzi has been pushing for punitive measures against the leaders of companies who are responsible for the bad investments. “Those C.E.O.’s and decision makers at the financial institutions who caused this crisis must feel the pain of recovery,” he said on Monday."

It appears that the FBI is launching a probe into the actions of Lehman Brothers, AIG, Fannie Mae and Freddie Mac. Michael Ross of Money.co.UK reported, "It has been confirmed by a federal law enforcement official that the probe has been launched regarding mortgage fraud, with allegations that executives at the four firms provided "misinformation" to the public."

Right now, Congress appears to be skeptical of the bailout. There is a reluctance to rush a plan... no matter how dire the warning sound from the treasury and the federal reserve. It also appears that the plan may not be completely new. Though it can be found in other places, Daily KOS reported that "White House Deputy Press Secretary Tony Fratto said it would be "unthinkable" for Congress not to pass legislation this week, asserting the result would be a "very, very serious situation" for the U.S. economy. ...... Fratto insisted that the plan was not slapped together and had been drawn up as a contingency over previous months and weeks by administration officials"

So, I guess it's only of a "new to you" nature.

My concern is this... it appears that much of the bailout benefits the investment banks- The same groups that sold risky loans as if they weren't. I could launch into a discussion of derivatives but two things would happen: 1) you'd fall asleep or 2) you'd tinker with my explanation. Let me shorten it to this: they are complex and they are wealth building tools that, used the wrong way, are weapons of mass financial destruction. See this article, in which Warren Buffet makes that comparison.

Jeffrey Rosenberg, Bank of America's head of credit strategy, had this to say about the bailout, ``Its benefits, in its current form, will be largely limited to investment banks and other banks that have aggressively written down the value of their holdings and have already recognized the attendant capital impairment,'' Though he didn't identify the beneficiaries by name, the implication is clear. Large groups are benefiting from the bailout. It's up to Congress to decide how to act on this. Will they not only approve funding, but also follow it up with punishment? It depends in large part by the will of the taxpayer.

If you'd like to make your feelings known, you can inform congress. Here's a great step by step tutorial (from Consumerist) on the best way to do just that: How to Write Congress.

Finally- Steve Lohr of the New York Times shows that Congress is looking deeply into adding claws to the bailout. In his story "In Bailout Furor, Wall Street Pay Becomes a Target", he states, "The stratospheric pay packages of Wall Street executives have become a lightning rod issue as Congress shapes a $700 billion bailout for financial firms. Proposals circulating on Capitol Hill vary, but they all would impose some limits or approval authority on salaries of executives whose firms seek help." It is expected that whatever bailout package is approved, there will be clawback provisions to take away the golden parachutes, to highly tax earnings achieved through inflating high risk loan packages or to send any defrauders to trial.

Of considerable note, Treasury Secretary Paulson may be less willing to address the CEO pay issue for good personal reason. As reported on Bloomberg: "As Goldman's chief, Paulson himself received an $18.7 million cash bonus for the first half of 2006, and in 2005 he was the highest paid chief executive officer on Wall Street, reaping $38.3 million in salary, stock and options. He had also accumulated 3.23 million shares of Goldman's common stock worth $492 million, plus restricted shares worth $75.2 million and options to purchase 680,474 shares, according to a Goldman regulatory filing on July 2, 2006. Paulson wasn't required to pay a 20 percent tax penalty on some of his compensation from Goldman under an Internal Revenue Service rule that waived the tax on executives forced to sell stock to comply with government ethics rules."

I guess I've gone on long enough. If you've managed to make it this far, congratulations. I would like to know your thoughts.

**********

Photo Credit "Bailing" by Kyle Flood

Chuck Willman is a real estate agent and founder of AZvest,a group of investment-minded individuals who specialize in real estate in and around the Phoenix metro area.

Visit him at www.AZvest.com

Phone: 480.292.0600 - Fax: 602.532.7830

Email: Chuck@AZvest.com

How Did We Get to This Point?

Like most people in the industry, I've been keeping a close eye on the volatility of the market. This includes keeping up with the musical chairs status of the financial institutions. We've seen runs, purchases, insolvencies and bankruptcies. We've also seen the end of the investment banks.

Seriously- who saw this coming?

Now the Treasury and the Fed are making their case for the largest bailout in history. Optimists will tell you this is what is needed to avoid a recession. Pessimists will tell you that, should the bailout fail, we could see conditions that will stifle the entire world economy.

Truth normally finds it's way to the middle. It's called a tendency toward the mean. It's not my purpose in this post to relate what will happen. It's too early for that. Though there is a proposal- there's not a complete approval... next comes action on the approval. At that point the picture may begin to grow more clear.

Until then, let's spend time on this topic: How did we arrive at this point?

One of the better articles I've read is from, Fred Frailey; he's the Editor of Kiplinger's Personal Finance. It's called "15 Things You Need to Know About the Panic of 2008."

He has charted the breakdown... and the caveats of the decision making involved in the modern economic crisis.

It's a very good read. In summary:

- Cheap money was available and financial institutions, and global players, treated housing loans as solid investments.

- As prices slipped the big discovery occurred... loans devalued, prices slid, every financial institution scrambled to maintain liquidity and keep clients.

- Investors withdrew funds from any institution that appeared to be troubled.

- Institutions tightened credit and governmental agencies swooped in to curb the collapse of larger players.

- The market is on a teeter-totter. Some are encouraged by what they see in the market while others are skeptical. We'll probably see the after-effects of this market for quite a while.

These are the things I'm looking for:

• Is the government's plan the right plan? Right now there's a debate over that. One large facet to this debate is whether the government is acting too quickly or not quickly enough. If the rescue is worse than the condition that is being treated the after-effects could be harsh. If there is too much inaction the market could stagnate.

• Will the market be turned over to an entity that has too much power? Strict constitutionalists contend that the government is overstepping its bounds. There is a separation of powers that prevent the executive, legislative and judicial departments from gaining too much influence over the nation. A very small group may be granted decision making powers that the constitution does not seem to provide. Some feel that certain measures may be taken that will cause us to wonder if we really are based on a free market system.

• What would the Presidential candidates do? There is no doubt that either candidate will react differently to the financial crisis. I'm intently interested in their approach. It will be the single largest issue upon which I'll base my voting decision.

----------

Chuck Willman is a real estate agent and founder of AZvest, a group of investment-minded individuals who specialize in real estate in and around the Phoenix metro area.

----------

photo credit: "New US Dollar in Circulation" - http://www.fun2fun.info/new-us-dollar-in-circulation.html

There was a remarkable report on CNN - story here

What do you do when your house is flattened by a Hurricane? You hire someone who knows how to build a structure that will withstand the punishing winds.

That's what Warren and Pam Adams did after their home was destroyed by Rita.

They consulted with the experts and constructed a home in Galveston... it remains the solitary remnant of their section of Gilchrist- which felt the wallop of Hurricane Ike.

Their new home survived. It remained standing while everything else was in shambles. It looks like a photoshopped anomaly amid the wreckage surrounding it.

Sadly, the flooding may be too extensive to save it.

It's one more heartbreaking story from the aftermath of this catastrophic storm.

Yet it gives a glimmer of hope to those who want to rebuild. Evidently someone knows how to design homes to survive the onslaught. The next step will be to figure out how to make them waterproof... a tough task indeed.

I extend my condolences to everyone who has experienced loss and to those who have been displaced by this Hurricane. This has been a very trying season.

------

Photo by Ray Asgar- a helicopter pilot

I just received a letter from one of my stock funds. It reads:

"We are writing to let you know that computer tapes containing some of your personal information were lost while being transported to an off-site storage facility ... [snip] ... That is why we are offering you and other impacted individuals a free credit monitoring service."

Uhhhhh.... thanks?

I guess I can cancel my current credit monitoring service- which I got the last time my identity was stolen.

Isn't it great living in the electronic age- where so much personal stuff can be accessed so quickly?

Yes... I'm being a little bit sarcastic. :-)

This sort of thing is happening more often. Large companies lose your sensitive data. First they let you know about it. Sometimes they give you some token service to help lessen the sting. I think I prefer the alternative... that they take a more serious approach to safeguarding the information in the first place.

--------

Photo Credit: "How Many Can I Fit in Here?" by Sam Blackman (bumper text added).

J.D. Power conducts surveys to help potential customers gain insight into the level of satisfaction that consumers have with regard to companies with whom they have experience. They cover the gamut of commodities, from vehicles, to electronics, financial services, health-care, travel, insurance, telecom and yes... even homes.

They've announced the results for new home builders, which they break down by major metro areas. Here's the Phoenix area Top Ten (With regard to Overall Customer Satisfaction):

Click on the above link to see how the builders performed. You will also be able to sort the results by other categories such as: Overall Customer Satisfaction, Builder's Sales Staff, Builder's Warranty / Customer Service Staff, Workmanship / Materials, and Price / Value.

Would you like to know the ratings for other metro areas? Go here:

J.D. Power Home Builder Customer Satisfaction Results- Rated by Metro Area

NOTE: These ratings take into account all subdivisions. I would caution consumers to realize that each subdivision will have its own set of advantages andvdisadvantages. Subdivisions will also vary in quality and price range. In other words, the luxury line of any builder may produce a different level of satisfaction than the starter home. It's important to consult with those who have a great deal of experience in the new home market.

-------

Interested in purchasing a new home? I'm a real estate agent who specializes in new home buyer assistance. Let's talk... purchasing a new home offers quite a few advantages over  existing homes. There are also a few caveats. Our consultation is free... and, should you decide to pursue purchasing a new home- all searches and assistance are complimentary as well.

Chuck Willman, Accredited Buyer's Representative, Gentry Realty

www.NewHomesAZ.com - chuck@NewHomesAZ.com - 480.292.0600

---------

J.D. Power Award is property of J.D. Power and Associates

I was listening to the radio this morning... just as I was seven years ago when I first heard of the tragedy that will forever overshadow this day.

We may all wonder what evil exists to cause persons to find this terrible act worthy of spiritual recompense.

We may also wonder if we've learned anything from it... or if it has shaped our life in some way.

I wouldn't wish disaster, pain or tragedy on anyone.

Yet, these very things shape us.

Do we decide to stoop to the level of those who wish us ill or do we find an elevated way to overcome?

This to me is the ultimate test of life... to us individually... as a community ... even as a nation.

A caller told the talk show host that she was attending a conference in the second tower. She and her husband escaped without their shoes (long story) also without their personal belongings such as money, credit cards, identification and cell phones.

Yet... when they walked, dazed and covered in ash- to the pay phones... each one had piles of coins. It's a small thing... but people found ways to help any way possible... from the large and demonstrative digging through the wreckage to the small act of making sure that people had loose change to call their loved ones.

She said that she, being foreign born, had never quite felt American... until that day when she discovered the little things that made us who we are.

-----

On a personal level- I feared for my sister. A pilot, she was in the air- flying for United. She was told to land at the nearest airport. After what seemed like hours, I discovered she was safe. I rejoiced for her safety but mourned for the many who lost their lives.

I still remember the quiet sky. Planes grounded, the sky was a splendid blue. Even silence can be felt and remembered.

To all who lost loved ones- I'm so sorry for your loss. To the rest of us- it is my hope that we may we find our better selves in the aftermath of this experience. I, for one, am proud of this nation's response to the event. It confirmed to me that, even in the depths of adversity, we are capable of noble and honorable things.