It’s not about real estate, but Money Matters in this tough economy! Have you heard of the Pre-Ignition Catalytic Converter claiming, “The PICC, Pre-Ignition Catalytic Converter is a breakthrough new technology that could get your car up to five times the gas mileage!”

I had a family member contact me about this and was thrilled that they had found something they thought would be the golden ticket to saving fuel costs . . .and the environment. Several phone calls were put out to mechanics about installing this “revolutionary” technology that was sure to be the next big thing, and since it wasn’t well-known yet - they were excited to be getting it at a fair price before supply and demand went through the roof and the cost tripled.

BUYER BEWARE!! I immediately opened my trusty source for everything you want to know and more, the Internet. I Googled the term PICC fuel and found all of the following information that supports this is a TOTAL SCAM. What’s most scary is that there are ads in reputable magazines such as Popular Science, so why would someone question its validity? It sounds good!

I share this with you because it enrages me as much as any real estate or lending scam would. Taking advantage of people who are completely frustrated and vulnerable in such uncertain times is UNacceptable. So, please click the links and forward to any friend or family member who may contact you with this golden key to the future either because they are passionate about saving the environment or simply cutting their fuel costs in half. And, if all these links still don’t convince you (you’re dillusional), remember that by installing this, you would void all manufacturer’s warranties on your vehicle.

If it’s too good to be true, it probably is! The links below are just a few of the sites that I found with facts, news stories and bulletins about the creator of PICC, Dennis Lee, this so-called technology and other scams he’s created.

http://www.funwithbutter.com/search/label/Automobile

http://www.electricitybook.com/dennis-lee-scam/

http://www.phact.org/e/z/dennisLeeonstealsanddeals.WMV

http://www.phact.org/e/dennis.html

http://www.nmsr.org/denislee.htm

http://www.rv.net/FORUM/index.cfm/fuseaction/thread/tid/21034695.cfm

2 Bdrm/2 Bath Condo for Sale at 52nd St/Thomas
810 Sq Ft
$115,000 - PRICED TO SELL!
Centrally located to all areas of the valley.

First Time Home Buyers or Great Investment Property. 2 bedroom -2 bath condo has tenants in place until 6/30/2008. The carpet was replaced in 2006 along with a fresh coat of paint. This unit has updated appliances. The two bedrooms are very large and spacious. Conveniently located next to Scottsdale on 52nd Street between McDowell and Thomas….easy access to entire valley!

Call Kelli Grant to see this excellent property for sale! 602-799-5420

4 Bdrm/3 Bath House for Sale in Rio Verde
2,883 Sq Ft * Built in 2004
$579,000 - PRICED TO SELL!
Rio Verde Dr. (Dynamite)/144th
Visit Property Web Site
Gorgeous mountain views and preserve. Swimming Pool/Spa is a ‘Spool’. Outdoor firepit. Granite counters, travertine, view deck. This beautiful home is surrounded by the stunning natural landscape of the desert that Arizona is known for.

Call Kelli Grant to see this excellent property for sale! 602-799-5420

2 Bdrm/2 Bath House for Sale off I-10 in Phoenix at Cypress Landing!
1206 Sq Ft * 2002
$115,000 - UNDER MARKET and PRICED TO SELL!
6646 W Nez Perce St. Phoenix, AZ — I-10/67th Ave

Large backyard with side yard and RV Gate. Great starter home or investment property. Within minutes of the I-10 freeway.

Call Kelli Grant to see this excellent property for sale! 602-799-5420

2 Bdrm/2 Bath Condo for Sale in Salida Del Sol!
1298 Sq Ft * 2002
$239,000 - UNDER MARKET and PRICED TO SELL!
16801 N 94th St. #2044 — 101/Bell Rd

Spectacular mountain views from living room, bedroom and balcony! Desirable Scottsdale Area convenient to shopping, dining, entertainment, night life. Within 5 minutes of the 101 freeway. 2 bedroom split floorplan is perrfect for office or roommate.

Call Kelli Grant to see this excellent property for sale! 602-799-5420

2 Bdrm/1 Bath House For Sale Way Under Market Value!
$135,000
1015 E Brown St
Phoenix Arizona 85020

MLS #2982912

Huge Sized Lot (.19 acre) with RV Gate on quiet street near mountain preserve.

Contact Kelli Grant to see this property. 602-799-5420

Walk Away or Stay?

There are thousands of homeowners facing foreclosure who simply walk away from their properties and their mortgages. The lenders are left to deal with the financial fallout.

It’s starting to become a business decision and not just a financial duress decision causing homeowners to walk away. Many who owe more than their houses are worth abandon their homes and mortgages and it just might make financial sense, especially if you are not too concerned about the hit to your credit score.

Some homeowners are combining that strategy with a new one. They are buying new homes before their old homes go into foreclosure, and then walking away from the old homes and the old mortgages.

What these homeowners hope to achieve is getting out of their current untenable mortgage situations with a new home and a new mortgage. And it appears that so long as the homeowners don’t mind seeing their credit scores tumble, this strategy will work.

The homeowners will need to come up with a new lender and sizable down payment for the new home, but once they’re in, there is nothing that the old lender can do.

Since the new home with the new mortgage, has no connection to the old home and the old lender, the old lender can not come after the new home to collect any debt owed on the old home.

What is also a sign of the times is that there are now realtors who specialize in helping homeowners pursue this strategy and lenders who also specialize in these situations.

Is this the right thing to do? I was raised with traditional values that you should pay back the money you borrowed. However, when a colleague approached me with the concept, I have to admit that it made me think. I have clients who continually ask my advice about the home they purchased in the height of the market . . and when they consider the crushing blow they’re taking, they want to know what they can do.

Some have crunched numbers and it may take an additional 7 yrs to break even…and if there are short sales and foreclosures attracting buyers who can enter the neighborhood for up to $300,000 less than what others entered into - what does that mean to the neighborhood? Are these new neighbors taking care of their homes and their yards in the same manner? Are they upgrading and landscaping to the same level as those that paid hundreds of thousands more for their homes?

Even when the overall market returns, will the neighborhood be an entirely different community than when others purchased the home? And, if you’re at a time in life saving for retirement and the primary residence was supposed to be an appreciating asset - is it better to walk away with a minor ding on your credit for going through a short sale and “starting over”?

I don’t have the answers, but I can say that, suprisingly, this concept made me stop and consider!

DISCLAIMER: I don’t condone this behavior, approve of such acts, or recommend doing this at home….but it sure is funny!!

The Rotten House
She spent the first day packing her belongings into boxes, crates and suitcases.

On the second day, she had the movers come and collect her things.

On the third day, she sat down for the last time at their beautiful dining room table by candle-light, put on some soft background music, and feasted on a pound of shrimp, a jar of caviar, and a bottle of spring water.

When she had finished, she went into each and every room and deposited a few half-eaten shrimp shells dipped in caviar into the hollow of the curtain rods.

She then cleaned up the kitchen and left. When the husband returned with his new girlfriend, all was bliss for the first few days. Then slowly, the house began to smell.

They tried everything; cleaning, mopping and airing the place out.
Vents were checked for dead rodents and carpets were steam cleaned.

Air fresheners were hung everywhere. Exterminators were brought in to set off gas canisters, during which they had to move out for a few days and in the end they even paid to replace the expensive wool carpeting. Nothing worked.

People stopped coming over to visit. Repairmen refused to work in the house. The maid quit.

Finally, they could not take the stench any longer and decided to move. A month later, even though they had cut their price in half, they still could not find a buyer for their stinky house. Word got out to the local Realtors and eventually even the local Realtors refused to take their calls.

Finally, they had to borrow a huge sum of money from the bank to purchase a new place.

The ex-wife called the man and asked how things were going. He told her the saga of the rotting house. She listened politely and said that she missed her old home terribly and would be willing to reduce her divorce settlement in exchange for getting the house back.

Knowing his ex-wife had no idea how bad the smell was, he agreed on a price that was about 1/10th of what the house had been worth, but only if she were to sign the papers that very day. She agreed and within the hour his lawyers delivered the paperwork.

A week later the man and his girlfriend stood smiling as they watched the moving company pack everything to take to their new home……… And to spite the ex-wife, they even took the the curtain rods!!!!!!

When a borrower is unable to meet the monthly mortgage payments on their home, the borrower will lose title to their home through:
1. A Short Sale
2. Foreclosure, or
3. Deed in Lieu of Foreclosure

But, did you know that under Section 108(a) of the Internal Revenue Code of 1986, a mortgage lender who forgave debt was required to provide a 1099 Form to the IRS stating the amount the borrower had been forgiven? The amount of debt forgiveness on a home is then taxed as ordinary income, for any of the previously three mentioned methods.

For example, you owe $250,000 on a mortgage and the lender reduced the amount owed to $200,000 to facilitate a short sale. Under current tax law, the $50,000 in forgiven mortgage debt becomes taxable income.

Unfortunately, the majority of people in a situation where that can’t make the mortgage payments are in financial distress (DUH!) and are unable to pay the additional taxes.

Relief is in Sight!
On December 20, 2007, President Bush signed H.R. 3648, known as the Mortgage Forgiveness Debt Relief Act of 2007. It amends Section 108(a) of the Internal Revenue Code of 1986 to ensure that any amount forgiven on mortgage debt secured by a principal residence will not be taxed. It was effective as of December 20, 2007 and applies to indebtedness discharged on a principal residence before January 1, 2010.

There are many legitimate organizations that help consumers fix their credit, but others are just waiting to take advantage of those needing help.

In today’s world of easy credit, bad credit and heavy debts are not uncommon. For many people, debt and credit problems become unmanageable. If you are looking for help, beware of several common credit-fix scams. First, understand that if there are errors on your credit report, such as debts that aren’t yours, you can fix these errors yourself for free. But, if your report is correct and simply contains information that you wish wasn’t yours, there isn’t much you can do. Creditors can keep debts on your credit report for seven years, and there is no magic trick that will make them go away.

Keeping that in mind, watch out for the following, as presented by Bankrate.com:

1. We speak the credit bureaus’ language or know some secret regulation that can make unappealing items on your credit report vanish.

Remember that there is no such thing as a secret formula that corrects unappealing citations on your report to make them go away. Some companies offering these services will just take your money and disappear. Others will bombard credit bureaus with frivolous disputes, and while these items are under investigation, they may temporarily be omitted from your report, after which they will return. The company, however, will show you your miraculously “clean” report and collect its fee. Also, keep in mind that the Credit Repair Organizations Act forbids any company from accepting money until after it does what it has promised, says Susan Grant, director of the National Fraud Information Center. Remember that scams will usually ask for money upfront.

2. We’ll convince the creditor that you don’t really owe the debt.

This works similarly to the first scam. Companies will concoct a scheme for you to challenge the debt or will claim that they will issue a deluge of procedural requests that will persuade the creditor to drop the claim.“Federal agencies have described these schemes as bogus,” says Deanne Loonin, staff attorney with the National Consumer Law Center. If you believe that you may actually have a defense with regard to a debt, you should consult a lawyer.

3. We will get you a brand-new, clean credit file. Remember that this is always illegal.

Companies may try to persuade you to apply for a new taxpayer identification number or employer identification number for the purposes of building a new credit history. This is a felony. Be especially vigilant of this one, because you may not realize what you are being asked to do because part of the con is not to explain the entire scheme. Besides being illegal, the “new” credit report would still list your name and address, which would still be connected to your old debts.

4. Call our 900 number for details on our credit-fix strategies.

This can be combined with any scam, and more than likely, the con artists will try to keep you on the phone as long as possible, extending huge per-minute charges.

5. We’ll clean your credit fast and use our contacts to get you a credit card, mortgage or loan.

This is a newer scam, and one of the most costly. Consumers who really need money or loans are especially susceptible to this, and can be persuaded to pay huge amounts to the scam. Some companies mimic credit-counseling agencies or mortgage companies, and will hit you up again and again, until you have nothing left. Since there are legitimate non-profit groups that help educate consumers with regard to their credit, it is best to keep a tight hold on your wallet and be wary of any quick-fixes or big promises. A little reference-checking on the Internet should quickly reveal the legitimacy of any companies.

Generally, be wary of companies that initiate contact, outrageous promises or huge fees. You should also be careful of two common mistakes that are not scams, but are costly. Refinancing your home to pay off credit cards is a bad idea since your home is now on the line. Also, since you are entitled to free copies of each of your credit reports annually, be careful of companies that ask you to pay for them.

Andorra Credit Repair Corporation is one reputable agency that you can contact with additional questions.

Your annual free credit report can be obtained at AnnualCreditReport.com. This site is sponsored by the three major credit reporting agencies, TransUnion, Experian and Equifax. You set up a log in and password, and it tracks the date and will remind you to pull your report again on the anniversary the following year.