Teri Ellis' Blog

  Recently I''ve been inundated with requests to purchase bank owned properties - particularly in the neighborhood price range of $50,000. Since short sales take months and months to even find out if the buyer can purchase the home, I'll deal more particularly with REO's or bank owned or foreclosed homes.
     When a home is foreclosed upon, all other liens are wiped out. In a short sale, more often than not, the seller has a second as well; therefore, the problems arise because the holder of the second is typically difficult to work with. Since it's very costly for the bank to foreclose on a home, they often try and work with the second and therefore, take months to work out an acceptable deal for both banks.
     I recently found a home for a buyer after five tries.  It was a bank owned - the buyer had an accepted offer of $80,000+, he ordered a home inspection performed at a cost of over $300 out of pocket to him, had the utilities turned on for additional out of pocket, and hired a plumber to fix a water pipe in order to complete the home inspection. Everything went according to plan - and then - shortly before closing, the selling agent notified us that title was unable to insure the home - BECAUSE there were still liens attached to the property.
     Long story short, after speaking with the title officer, one particular investor (bank) had purchased properties from another investor/bank. (Think of Country Wide and Bank of America as an example)  My buyer's potential home was just one of 300 homes that fell out BECAUSE the properties had not been foreclosed upon, thereby preventing the title company to insure. Liens were on all of the properties. As I mentioned, it is expensive to go through a foreclosure process for the banks. It appears that this was yet another example of fraud! My buyer is out the money he spent to get into the home, as well as 299 other buyers just with that title company. Who knows how many others that were working through other title companies.
     Though many of the bank owned are successful, this is just one example of the unknown backlash of purchasing a bank owned. No disclosures by the owner, buyer is purchasing as is, and subject to the bank's rules and whims.
     My recommendation? Make sure you listen to the advice of your Realtor. Chances are, they are more in tune with the market than you are. Try and remember also? The cheaper home is not necessarily a good buy after all.....

Loan Modifications being issued at the Phoenix Convention Center. For more information log on to
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Call Teri at: 480.216-3334 for any questions.

Available June 15, 2009, and located in Circle Cross, this is a great home for families. Split floor plan, grass in the back yard, close to shopping, and new hospital. For more photos, stop by HomesArizonaRealEstate.com or call: Teri at: 480.216-3334.

Owner of the property is a Realtor - mortgage is paid regularly - great opportunity to rent with peace of mind.

The real estate market in the Phoenix, Arizona and Mesa, Arizona valley is going through more twists and turns as foreclosed homes come onto the market.

Unfortunately, many buyers are competing against cash buyers – and losing.  The old saying, “cash is king” is true in this competitive  real estate market.

Recently one of my buyers made an offer on a foreclosed property. Over asking price, very clean, and a desirable offer to any potential seller. However, the buyer lost out to a cash buyer even though the cash buyer offered less. Even the REO agent wanted my buyer to get the home, but has no say!

Why? You ask? Would the bank accept a lower offer? In our market, appraisals are all over the place. As of May 1, in order to “fix” or “remedy” the problem, a new federal Home Valuation Code of Conduct  was placed into effect. No longer are the lenders allowed to speak with the appraisers – nor are they allowed to “choose” the appraisers that will be appraising a home “they” are lending on. Bottom line? It’s a mess!

The left doesn’t know what the right is doing, homes are not appraising, and there are multiple bids on the most desirable homes.

Despite the issues we face, Realtors will continue to push through the paperwork, the difficult appraisals, and we will write two, three, four and more offers in order to get our buyers a home. Ridiculous? Yes!! BUT, this, too, shall pass!

For more insight and understanding about what’s going on, click on the links here and here.

This is an email I received today – purportedly from the IRS! Ask yourself: would you respond? Should you respond? The answer is a resounding NO!!! Did you notice the misspellings? How about “u” instead of “you?”

I have reported this by emailing this to phishing@irs.gov.   Be very, very careful at being lured into thinking the IRS emails you – they state on their website that they DO not  email you. Please be careful….and be careful of emails from your bank, from paypal, or any other questionable source. There are lots of scamming crooks ready to take your money!

“After the last annual calculations of your fiscal activity we have determined that you are eligible to receive a tax refund under section 501(c) (3) of the Internal Revenue Code. Tax refund value is $189.60. Please submit the tax refund request and allow us 6-9 days in order to IWP the data received.If u don't receive your refund within 9 business days from the original IRS mailing date shown, you can start a refund trace online.

If you distribute funds to other organization, your records must show wether they are exempt under section 497 (c) (15). In cases where the recipient org. is not exempt under section 497 (c) (15), you must have evidence the funds will be used for section 497 (c) (15) purposes. If you distribute fund to individuals, you should keep case histories showing the recipient's name and address; the purpose of the award; the maner of section; and the realtionship of the recipient to any of your officers, directors,trustees, members, or major contributors.

To access the form for your tax refund, please click here

This notification has been sent by the Internal Revenue Service, a bureau of the Department of the Treasury.

Sincerely Yours,
John Stewart
Director, Exempt. Organization
Rulings and Agreements Letter
Internal Revenue Service”

It's happening here in Phoenix and Mesa Valley of the sun. Our numbers are going down, and our solds are going up. We are down to 7,995 listings under $100,000. The investors and new home buyers have flooded our market keeping all of us hopping.

It is common to see 18+ bids on the homes under $100,000, and even above that number - Buyers are definitely back.

The new numbers are here...we are down to just above 40,000 since January. Will we be down to 40,000 by the first? We'll have to watch and see. 

As you may recall, in January, we were up to almost 60,000 active listings. Things are changing.  Inventory stats of all listings in our entire home market are as follows:

March 19

Active: 48,837

Pending: 10,869

April 3

Active:  45,694

Pending: 11,896

April 10

Active:  44,348

Pending:  12,963

April 17

Active:  42,907

Pending:  13,403

April 29

Active:  40,437

Pending:  14,226

The numbers speak for themselves!!!