On December 14, 2007, the President signed into effect the Mortgage Forgiveness Debt Relief Act of 2007. The premise of the bill allowed home owners a relief from their debt on primary homes that they chose to short sale or were foreclosed upon. Before this bill, homeowners were still responsible for paying taxes on any debt that was relieved.

An example:

Michael and Betty are underwater on their home. They purchased it for $500,000. When Michael lost his job, they were put in a position of being unable to pay their mortgage. After speaking with a Realtor, the couple decided to try and short sale their home, which now has a property value of $390,000 due to the nose dive that the real estate market took. Michael and Betty received an offer from some buyers wishing to purchase the home for $375,000. After assessing their situation and credentials, the bank agreed that accepting something would be better than nothing, and approved the short sale of their home. They agreed to release Michael and Betty from the responsibility of their debt, a $125,000 difference. This is a forgiveness of debt. Unfortunately, to the IRS that is synonymous with “income,” and they can collect taxes off of the $125,000. Lucky for Michael and Betty, the passing of the Mortgage Forgiveness Debt Relief Act of 2007 forgives them of any debt to the IRS acquired in this short sale (since it was less than $2 million), and because it was their primary residence.

Fast forward:

The Mortgage Forgiveness Debt Relief Act of 2007 was only signed into effect for the calendar years of 2007 – 2012. It is set to expire December 31, 2012. This means that under current law, forgiven debt may be taxed as income. Currently we do not know if Congress will agree to extend the Act, amend it in some kind of meaningful way, or get rid of it completely.

What this means:

If you are a homeowner that has been considering participating in a short sale, and you believe that Congress will opt to extend the Mortgage Forgiveness Debt Relief Act to 2013 or beyond, relax. However, if you have a hard time believing that Congress will agree to extend, then you should be a bit concerned.

Short sales have a lighter impact on your credit than foreclosures, and while they are not a quick process, can help relieve you of the stress in your life, or a property that you can no longer afford.

Before deciding to do a short sale, we highly suggest that clients speak with financial counseling or speak with an attorney, and find a Realtor that is well versed in short sales. If you decide to work with us, we would be more than happy to help you find a financial advisor and attorney.

The banks are dealing with many short sales these days, and the entire process can take months. So if you are thinking about selling your home with a short sale, don’t wait. Now is the time to act, especially since you just may not get the tax relief next year that is currently available. With the market picking up, buyers are hungry and ready to put offers in on homes quickly!

1. Coming in first, is our hometown, Phoenix, Arizona. The median list price increased 23.4% in the last year and is currently $179,000.

2. Miami, Florida: 22.47%, $269,000

3. Boise City, Idaho: 19.73%, $155,532

4. Punta Gorda, Florida: 17.5%, $187,887

5. Washington D.C.: 17.44%, $270,000

6. Santa Barbara, California: 15.95%, $509,000

7. Daytona Beach, Florida: 15.47%, $179,900

8. West Palm Beach, Florida: 15.38%, $225,000

9. Naples, Florida: 15.38%, $375,000

With listing prices on the rise, and buyers out snatching property up almost instantly, please feel free to contact us if you are thinking about selling your home!

In light of the market there are a few things that you should keep in mind if you are trying to put offers in on a home right now. Firstly, you should prepare yourself to make quick decisions. At Occasio Realty, we always like to make sure that our clients are prequalified with a lender before they go out looking for homes. Right now this is especially pertinent, because if you find yourself looking at a home you love but still have to complete important tasks and paperwork first, by the time you are finished there may already be a bidding war going on. If you’re headed out to look and you have all your ducks in a row beforehand it will simplify the process for both you, and allow your agent to spend more time presenting your offer instead of worrying about the details.

Make sure you are working with a qualified agent. This is critical as a bottom line, as they will know better how to look out for your interests, but especially right now. If your realtor is knowledgeable, they will be able to direct you towards homes that you will have a better chance of making an acceptable offer on, and help you to price your offer correctly so as to win any kind of bidding war that may come up. For example, if you’re looking at a home that is very underpriced, you’re likely to end up putting in an offer with a lot of other people. This home may end up selling for thousands of dollars over the asking price, and possibly even more than it’s worth. If your Realtor knows what they are doing, they will be able to direct you to accurately priced homes that may not look like such a “steal” to others and investors, therefore giving you a higher chance at getting into contract on the home.

Weekends may seem like a great time to look at homes, but that is exactly how everyone else feels as well. If you have a little bit of flexibility in your schedule, week days are great for opportunities in this market. Since the majority of the public will be out for showings on Saturday and Sunday, if you find a home you love and put an offer in on a Wednesday, you may have a higher chance of having it accepted before the crowds have a chance to get off work and even look at it!

Last but not least, try not to second guess yourself. If you find a property that you like don’t hesitate, because while you are taking time to think about it, others may be writing on it. A good Real Estate agent will make you aware of all the steps in a transaction, so you will know that getting accepted is just the first step, and gives you the opportunity to do a more in depth inspection and some research on the area. If you find that you aren’t completely satisfied, there are steps you and your agent can take to walk away and find something that better suits your needs. Hesitating, on the other hand, does not afford you this possibility. If you wait, you may lose out on a property that could have been your perfect fit!

Please don’t hesitate to call if you have any questions on the market today. Here at Occasio Realty we pride ourselves on being well informed, knowledgeable and very in tune with the market. We’d love to help you buy or sell your home!

-Stop buying new, and start buying new. We all love the newer, bigger, better models of everything from toys and gadgets to new cars, but you can save a lot of money and lower your environmental impact by recycling the items that others have finished with.

-Start recycling! Most areas offer free recycling and trash pick up these days. Do your part and separate the two. That little bit of energy that you put forth saves a lot of energy on the other side of the spectrum.

-Shop at thrift stores more often, and take your used goods there. Instead of throwing things away, donate or sell them to used stores. Your trash may be someone else’s treasure.

-Grow a garden! Indoor, outdoor, whatever your climate allows for. Organic food is expensive these days, but if you are the one growing it, not only do you know what kind of chemicals are or aren’t used, but you are saving money at the grocery store!

-Slow down. Allow for a couple extra minutes when you leave your house each day. By slowing down your driving speed you consume less fuel and put less wear and tear on your car. Better for the environment, and great for your bank account.

-Use cruise control. If you aren’t stuck in city traffic allow your car to do it’s thing. Your car’s computer is better at maintaining a constant speed and consuming less fuel than you are. It was designed to reduce fuel consumption.

-Keep your home well dusted. Especially around the fridge. Extra dust behind and around the fridge makes it harder for it to breathe, and will force it to consume more energy doing so. If your fridge sits in direct sunlight, pull the blinds down during sunny hours, this will allow it to stay cooler by itself.

-Turn off your TV. By spending extra time doing something more productive you will not only feel better about yourself, but also save the energy that it uses up.

-Store your food in re-usable containers. Yes, ziplocks are great for on the go, but the more you throw away the more you are harming the environment. If you plan on eating it tomorrow night, save it in something more lasting.

-Eat at home! Have friends over for meals. Potlucks are great fun. You not only get to enjoy the company of the ones you love, but may also have leftovers for tomorrow and a much less heafty food bill.

-Ditch the home phone. If you have become cell phone dependent and the only people who actually call the house line anymore are solicitors, what are you doing?! It’s time to lower the bills and save the time that you spend declining absurd offers.

-Re-use old boxes. If you order something and it comes in a box, save it for the next time you may need to send anything or move. Boxes break down and can be stored anywhere from behind doors to under beds. No need to waste them and buy new ones the next time you are moving out or sending a care package. That’s money in your pocket and less trash in the can.

-Get more sleep. If you average less than 8 hours a night, try to give yourself a bit more tomorrow. Not only will you feel better, but you are using less energy and racking up less bills if you are sleeping for the correct amount of time.

-Get off those annoying mailing lists. Do you really read everything they send you anyways? It’s a waste of paper if you throw out half of the mail you get on a daily basis anyways. Plus that gives you a little more time and a bit less rubbish to sift through.

-Buy a water saving shower head. It’s unbelievable the amount of water these save. Plus they are more relaxing and natural. In addition to saving the water, you’re also saving the energy used to heat it!

Help out your bank account and your environment, reduce, reuse, and recycle!

If you have any real estate related questions, or are looking to move into a home that is more green than your c\urrent house call us here at Occasio Realty today! We’d love to help you clean up your lifestyle. 480.699.1820.

Almost all levels and types of housing products in Phoenix have seen recent price declines: foreclosures declined 11 percent so far this year from November of 2009, traditional resales saw a decline of between 9 to 13 percent since early 2010, and even entry level housing has declined by 8% since November of 2009. This all translates into enormous opportunities for prospective buyers out there. When you consider that average 30-year mortgage rates are still the lowest on record despite recent weekly upticks, the affordability of buying a home is unprecedented. These declines represent a recent trend, yes, as compared to the data trend earlier this year and into the spring/ summer season. Declines are common though during the slower season of the real estate cycle and are nowhere near the declines seen in 2008 and 2009 when prices declined 32 and 17 percent respectively.

Depending on the type of home (condominium, townhome, single family) the pricing can differ significantly by month and even weeks, this can be confusing for prospective home buyers. There is a lot of real estate data and sensationalized media reports on the internet now that can obscure buyer’s ambitions to purchase a home, even more so for buyers who are not versed in the home buying process. Agents with Occassio Realty are educated with the latest accurate data to evaluate the pricing conditions of every type of real estate property in the metropolitan Phoenix market, the sources of this data are not only highly reliable but updated regularly in a timely manner.

If you’re a prospective buyer you should carefully verify your sources of data on the internet when conducting research.
Sometimes sensationalized news stories are only depicting a certain segment of real estate or possibly a small seasonal fluctuation in market conditions that when compared on a year-to-year scale seem very minuscule. Buyers should also check for the source of data, is it coming from a reputable institution, or a well-known professional source, is it stagnate data captured only once a year? Reputable data will typically have a cited source, where upon your own desire, you can check the raw data for accuracy.

If you have conducted homework as a buyer it’s best to talk to an experienced agent to verify facts and discuss concerns and/ or questions. Call us at Occasio Realty today to schedule an appointment, we have great resources to supplement and assist you in your home buying process.

The tradition began about 20 years ago and is a must for those in the valley. It’s great for everyone, families, couples, they even have a single’s night.

The Phoenix ZooLights team works hard all year round to design and build new features to keep the audience coming back and the excitement alive. It takes a crew of 4 people a total of over 12 weeks to instal the entire display. Exciting displays this year include a 24 foot lighted sphere floating on the lake, a life size lion display, the Music in Motion dancing tree show, horse-drawn wagon rides and camel rides, as well as a 180 foot long polar slide for simulated snow tubing in the Southwest!

This year ZooLights has put in the extra effort to go green. They are using LED (light-emitting diode) lights that consume far less energy than the standard light bulbs. This decreases energy costs and reduces their environmental impact since the LEDs take less energy to manufacture as well.

This year the ZooLights display will end on January 9th. It’s not too late to get your tickets, which cost between $8 (for zoo members and children) to $12 (at the door). Discounted tickets are available at Fry’s grocery stores. So what are you waiting for? Pick up your tickets and enjoy the zoo by night today!

For any additional needs concerning real estate, please feel free to contact us at Occasio Realty! 480.699.1820.

Fannie Mae’s chief economist Doug Duncan points out that most of this response is due to affordability, but that people have begun to have a psychological change in how they regard homeownership: homes are now considered places to live and grow rather than just an investment to flip later on.

Duncan notes that the market has changed significantly from years past and that overall homeownership rates will decline because incomes will fall behind affordability. The period of time it takes a homeowner to recover equity and build some will also depend on local economic factors effecting real estate, such as employment and the value of land. It will essentially take more time for owners to break-even now.

If you’re aspirations are to own a home again, or move-up from your current home to something different than you should contact Occasio Realty to speak with one of our agents. We specialize in all areas of the metropolitan Phoenix market, including: Tempe, Mesa, Chandler, Scottsdale, and Gilbert. Our agents have resourceful relationships with title companies, lenders, and home inspectors to help facilitate and successfully bring your goal of homeownership to realty. 480.699.1820

Source: Wall Street Journal. “Even in Hard-Hit Phoenix, the American Dream Endures”. 12/16/2010

Everyone has their own opinion on HOAs. Responses range everywhere from very positive to very negative. An HOAs presence in a community is there to enforse community rules and collect dues. Some people object to the restrictions placed on neighborhoods by an HOA, while others praise their existance and appreciate the services provided.

Since an HOA can add hundreds (even thousands, depending upon the community) of dollars to the cost of renting or owning a home, it is important to weigh the pros and cons before you sign any kind of documents tying you to the property.

PRO: An HOA can greatly improve your property’s value by regulating the outer apearances of all homes in the community. Some will require lawns to be maintained at a certain hight, garage doors to repain closed, or allowing only specific colors of home paint or materials on the buildings.

CON: Many homeowners do not want to be held responsible for having to ask permission to make changes to their home’s appearance. The HOA has the power to reject plans and improvements. It may feel like someone is constantly breathing down the back of your neck to make sure that your home is landscaped correctly and that the shutters are acceptable colors.

PRO: HOA fees pay for the maintenance of the community’s common areas. These include areas such as pools, playgrounds or workout facilities. They may also provide services such as landscaping and snow removal depending upon the time of year.

CON: The HOA fees are an added expense and subject to change year to year. If you disagree with changes in the HOA you are not at liberty to stop paying the fees. The HOA has the power to put a lien on your home or even force a foreclosure.

PRO: HOAs can be called on to resolve conflicts between residents. It is their job to maintain positive feelings between neighbors and they have the final say on all matters. They also organize events for the residents of the area to promote a sense of community.

CON: HOA boards are typically made up of volunteers who may not have time to spend with all HOA matters. This can sometimes lead to poor management and a feeling that the fees are being wasted. Some HOAs hire a management company, but in this case the residents will not have any personal ties to the company and may be feel underrepresented.

Before you decide to rent or purchase a home with an HOA make sure to obtain a copy of their rules and regulations. Talk to other neighbors in the area and see how they feel about it. As long as you keep yourself informed you should be in the clear. Know what you are getting yourself into.

If you have any questions on Homeowners’ Associations or anything else real estate related, feel free to give us a call at Occasio Realty! 480.699.1820.

RESEARCH: This is very important when trying to figure out where you would like to move. Almost every school has a website, whether it’s own, or a link from the school district’s website. Read about how the school describes itself. What is the mission statement, or educational philosophy. Sometimes you can find test scores from the past and compare them to the national averages. There are also other websites that have excellent information about individual schools, some with forums and rating systems. Comments from other parents can be a great insight to what you can expect from the school or school district. After finding out about these things, write a list of further questions that you have or could not find answers to.

VISIT THE SCHOOL: There is really no substitute for personally walking into the school and making your own observations. The school should have some kind of program set up for new families, so call ahead of time and schedule a visit and meeting with a parent volunteer or principal. Request a tour of the school as well. This is a great opportunity to ask the questions that you have from your research.

EXAMPLE QUESTIONS: Here’s a list of some questions that you may or may not have thought about.

-How long has the average teacher been teaching at this school?
-How long as the average teacher here been teaching?
-How are parents involved in school activities?
-What kind of extras are available for children to participate in?
-What kind of creative classes do you offer (art, music, science, language, physical education)?
-How does the school make extra money? What kind of fundraising opportunities are available and where does the money go?
-How active is the PTA?
-Do your teachers have teaching assistants in the classroom? If so, how much of the teaching is done by them in comparrison to the actual teacher?

Do you have any other specific questions that can help make or break your school decisions? Leave them as a comment below!

If you need help or have questions about any of the schools in the metro Phoenix area or Mesa, or anything real estate related, please feel free to give us a call at Occasio Realty. We’d be happy to share our wealth of information with you! 480.699.1820.

The art of squatting is defined as a person who is occupying a vacant home with no actual ownership of it. These people often successfully manage to stay in a home for months without trouble from authorities by claiming that they have a right to be there and showing fake leases and paperwork to authorities.

In recent months an alarmingly high number of people and families have been caught doing just that. And not only in your average middle class neighborhoods, these scams are occuring in high end communities and even mansions.

These squatting scams are executed in a number of different ways. In one case an individual will gain access to a lockbox code on a property and simply open the front door and begin moving in. In another, a person may hire a locksmith to show up and change the locks on the property so either he can move in, or will sometimes even rent the place to other tennants. In this case, by passing himself off as a landlord, the individual is actually making money off a home that he actually has no legitimate ties to.

Some other problems that arise with squatting go as far as hacking into computer databases to remove listings of the homes they occupy in order to be able to stay for longer periods of time under the radar. Phony leases and other documents will also be produced in order to hold off authorities and keep others away from unraveling the scam. Utility theft is common as well, since the squatters may or may not be able to turn on power or gas with their false documents.

It can take months to get a squatter out of a home. With all the false information and the police forces fear of lawsuits, sometimes information is just not at their fingertips. Police are required to be sure that a crime has been commited before taking action or making arrest. While waiting around for the go ahead, squatters have more time to make cash from their tennants or to stay in the place for a bit longer.

Many neighborhoods around the country with high foreclosure rates have banded together in attempts to shed light on these squatters. They keep an eye on empty homes and make sure to know who the Realtors and lenders are that are involved with the property. That way they can report any activity to those who know what should actually be going on with the property.

If you are currently looking at renting a property, be sure to stay knowledgable about these scams. Here is some advice to keep you on the legal side of renting and ensure that you are not innocently becoming a squatter:

-Do your research: Make sure you know the person who is listing the house. You can run an internet search on him or her and see if anything bad comes up.

-Take a picture: If the person you are dealing with is a fraud they likely won’t want you to have them in any kind of records. Try to take a photo of them in the home while you are looking at it. That way, if it turns out to be a fraud you have some evidences as well.

-Keep an eye on cash deals: If the person will only deal in cash or cashier’s check be a bit skeptical, and you never want to do business with someone who you aren’t allowed to meet. If they leave keys for you and always say they are out of town it may be a red flag.

-Find their office: You don’t want to be signing papers on the hood of a car or at the place in question. If this person is an actual landlord or property manager they will have some kind of professional facility that you can see.

Lastly, if it sounds too good to be true, it probably is. Since these squatters are not paying any bills or mortgages on the property, they are not very picky about price. Everything you give them goes straight into their pockets (and hopefully one day to court fees after they get caught,) so make sure that you aren’t being fooled out of your money.

If you have any questions about a specific property or some kind of deal you think may be a scam, give us a call at Occasio Realty today! 480.699.1820.