Everyone knows that Phoenix, AZ, Scottsdale, Peoria, Tempe, etc... saw real estate prices more than double from 2000-2005. Real Estate Investors flocked to this real estate ‘gold rush' from all over the country, Canada and abroad.
Fueling the Phoenix real estate investor frenzy was an era of (too) easy lending and (virtually) free money. Top that off with low fixed mortgage interest rates and so-called "NINJA" loans (No Income, No Job, No Asset Verification) loan and every person with a 600 credit score becoming a real estate investor in Phoenix, Scottsdale, Mesa, etc...
Phoenix area Real Estate investors hoped to either ‘fix & flip‘ he homes for a quick profit or turned them into rental properties using the rental income to pay for a majority of the monthly monthly fixed rate mortgage or adjustable rate mortgage.
As we all know, real estate in Phoenix, Fountain Hills, Gilbert, Mesa and Chandler has declined sharply. As a result, towns like Tempe, Glendale, Scottsdale, North Scottsdale and even Paradise Valley are experiencing short sales, lender owned homes (REO) and foreclosures.
The result of the Phoenix area real estate collapse has been a series of short sale nightmares.
A new short sale nightmare in Phoenix is arising as a result of the Phoenix real estate crisis. As we know, Phoenix, AZ homeowners are having difficulty or no success in selling homes. Now, homeowners are making the conscious decision to walk-away from their homes in Scottsdale, Phoenix, Peoria homes and decide to no longer pay their mortgage.
They are facing a short sale, so "why pay??" they ask themselves.
The problem is that they are not telling their tenants. Phoenix area homeowners are keeping the monthly rent (minimum 90 day foreclosure process) and not paying the mortgage. Also, in many cases, the owners are keeping the damage deposit and not returning it to their tenants.
I am hearing story after story of good paying renters coming home to foreclosure notices on their doors with no return phone calls from the landlord. Other tales of water being turned off at the city as those utilities are often paid by the landlord.
I was told a story about a Scottsdale resident who arrived home from work to find an eviction notice from the bank demanding they move out immediately. The nice couple had to take days off work, pack their belongings, hire and pay for movers and deplete their savings to pay for first, last month rent and damage deposit on a new apartment.
The worst part of all of these short sale nightmares is that there is little renters can do. The current law does not require that rental monies be paid toward the mortgage or returned to the renter.
Due to the conditions present in today's Phoenix area real estate market, this needs to change to protect tenants and to expand tenants rights in Phoenix and the rest of Maricopa County.
Contact your local Congressman and let your voice be heard.
Contact James Wexler (480) 221-8080 for your Phoenix | Scottsdale area Real Estate needs