Mark Organek - Tempe Gilbert Mesa Chandler REALTOR

I went from Phoenix Arizona all the way to...

You know the rest of the words!

Which grew by more today: The amount of miles on my vehicle or the number of foreclosures in the City of Phoenix?

Today, I went from Tempe to Mesa to Gilbert back through Mesa to Scottsdale to Tempe to Mesa to Gilbert to Chandler to Phoenix to my home in Tempe!!! A pretty long day viewing homes, picking up a listing, getting a key, hustling to the office, meeting at 6:00pm and then picking up my son in Phoenix. So, what's the big deal?

More foreclosures hit the market in Phoenix alone (not the metro area, just the City of Phoenix) today than the amount of miles I racked up in my trusty Honda Odyssey!!!!

What does that mean?? OPPORTUNITY!

Well, foreclosures are hitting the market and buyers still aren't aware of the value they can get by purchasing such affordable housing.

As of 12:59am Arizona Time, there are 204 homes under $30,000!! Renters and investors can pick up some pretty great opportunities for housing and reap long term rewards. Many of these homes are in neighborhoods renting for over $700/month!

Want to have some fun? Visit www.monopolyman.com when you have some time to kill, look up Phoenix foreclosures, check how many are on the market and then, count to 100. If you refresh your browser, chances are that number on the market will have risen.

Sure more properties may hit the market but when you can buy a home for $30.00/sqft., in the long run, how well will you do?

Maybe it's time for the market to get an oil change?

I'm fed up with the ignorant companies that just don't understand that a short sale has no chance competing against an REO!

On top of that, failed short sale attempts commonly become lower priced REO's/Foreclosures/Bank owned properties.

I sent a letter to my Senator requesting an inquiry on servicing companies practices. Here's what I sent. If you feel it's in line, please send a similiar message to your representative:

Senator McCain,

I respectfully request that an inquiry commence regarding the unwillingness of mortgage companies to mitigate losses experienced by mortgagors. There is a rapid decline in home values occurring specifically caused by the inability of homeowners to mitigate losses.

In Arizona, home values are accelerating downward due to a lack of participation from various banks in avoiding foreclosure. This lack of sound practices has created an environment that has fueled a rapid decline in home values. Recently, I have watched the value of a client's home drop from $130,000 to potentially less than $60,000 due to an unwillingness of the mortgagee to participate in a loss mitigation process.

This is a serious matter and deserves much attention as the gap between the value of an owner-transferred home vs. a foreclosure/REO home usually represents a large difference. Without oversight, the mortgage servicing companies have the ability to hide behind internal policies that impede the ability for a loss to be minimized.

I recommend that if a bank denies a homeowner the ability to short sale a home, only to later foreclose and sell at a lower price, then the difference between the short sale net and the net proceeds from foreclosure should not be put on the shoulders of the American public. This irresponsible practice must come to an end.

As foreclosures continue to rise, it becomes increasingly difficult for a short sale to compete when corporate policies dictate that an opinion of value not be ordered until an offer to purchase has been received. With many bank owned/REO/foreclosure properties on the market, no agent in their right mind would subject a home shopper to wait for an arbitrary review process to run its course.

I have personally witnessed the deteriorating effect on a home's value when said property is attempting to sell short and the considerable loss that will ultimately be passed on to the taxpayer. Modifying banking procedures can rapidly put a halt to further value decline.

Please take the time to consider the current loss mitigation policies of various institutions and examine how these indifferent policies are affecting the overall financial well being of our country. Under the current standards of practice, our housing market will suffer further rapid decline. Furthermore, the taxpayers should not bear the burden of the result of indifferent and unmotivated practices.

Respectfully,

Mark Organek

I understand why a bank would want to have an offer before a BPO is ordered. It does make sense. Now, however, our market is changing so quickly that in some cases it doesn't make sense.

It is just this particular home!! - I have three short sales with EMC, on only one of them (located in South Phoenix) I advised them that there are so many REO/Bank Owned properties surrounding this home that we don't have a chance to sell it without a BPO getting ordered. Agents just will not show a short sale when there are 20 competing REO's that can answer much faster!

I told EMC that they had to order it or we will lose value! - From the time I consulted the seller to now, the property has dropped from $135,000 to $60,000 or less. I could've sold this in December at $80,000 to $90,000 but then a swarm of REO's hit the market at $40,000 or less.

EMC's stance? - We don't find it to be cost effective to order a BPO on a property without an offer... How cost effective was it to lose $80,000?

Solution? - Please keep track of transactions like this and report them to your congressman and senator if you know of a home that was sold as a foreclosure for significantly less than what could've been fetched on a short sale. This is an abusive practice that is burdening our financial system with larger losses than necessary. Other banks like US Bank and HOMEQ seem to want to mitigate losses while companies like EMC sit and hide behind ineffective policy.

We're all in this together - Let's do our part as agents to keep companies that create problems, that are penny wise, pound foolish in check.

The first few days of 2009 shed light on the fact that many potential homebuyers are not aware of the $7,500 tax credit available for first time home buyers.

I was showing homes on New Year's Day and as I was locking up the last home I was planning on showing my clients, other couples that were renters in the area happened to wander by. All of the 6 people that saw me there and decided to come by were pretty unaware of the incentive given to purchase a home.

Should they rent or buy? What action should be taken in today's market??

In one case, a couple that was renting across the street for $800.00/month would not only be able to purchase and have a PITI payment of less than $550.00 per month but they would also get an income tax rebate that would, in essence, let them live for almost a whole year at less than $100.00/month.

Because of the turnout, I held an open house the next day. Of the 15 groups that came by, none of them seemed to be aware of the tax credit. I picked up five clients that either decided to search for a home with me either that day or requested that I help them with a property search by the end of the weekend. One wants me to sell their home.

Don't believe the naysayers! We have reached a point in the market where it makes more financial sense to own than rent and many don't understand the full advantages that they can receive by buying a home. All I did was direct them to my foreclosure search website and picked up three new clients by doing so.

You just gotta believe! Get out there and educate the public on the benefits of home ownership. It can be our contribution to stimulating the economy. Each person that can save a few hundred bucks on housing payments going from renting to owning, plus the money the get extra on their taxes, can mean more money pumped back into a productive, healthy economy.

To search Arizona Phoenix Metropolitan foreclosures, visit www.monopolyman.com. Custom searches available simply by selecting custom search when there.

After having success at an impromptu open house on New Year's Day, I figured I'd hold a real one. Fifteen people showed up!!

Oddly, no inquisitive neighbors, only people seriously interested in transacting real estate. The first person was a bit rude but maybe it was a front thinking he was going to have to deal with a pushy agent (which I'm not!).

From that point forward, everyone that came in was friendly and nice and with so many people really, truly interested in making a real estate transaction, I was able to sit back and just chat, not really caring about whether or not they wanted to work with me.

In all, three are interested in purchasing now. A fourth and fifth will "get back to me later." Two couples went out looking with an associated that I had to refer them to because they wanted to see properties yesterday and I received an email from a nice gentleman that went to my www.monopolyman.com website looking for a foreclosure and ended up filling out a custom search form for property.

2009 is looking pretty promising so far! I hope it is prosperous for all that work it!

I look forward to a very exciting year in real estate!