Terry's Blog

George Zoritch...Remembering

Terry Bishop (RE/MAX Excalibur) — Fri, 06 Nov 2009 12:40:33 -0600

[gallery] Life is full of things we promise ourselves we are going to do, or promise others, and so is the case with George Zoritch to whom I promised a roast lamb dinner...and never delivered.

I first met the acclaimed ballet dancer after I had ordered "Ballet Russes" from Netflix. I watched it with fascination; the graceful movements of the participants of the Ballet Russes, and the difficulties they endured with long hours, low pay, but profound love for their craft. These were the days when people performed for the love of performing, not for exhorbitant salaries.

George was interviewed on the documentary and from the locale and his dialogue, I thought I knew where he lived. So checking sources, I found I was correct, less than a mile from my home.

With a friend, I excitedly went to purchase a huge bouquet of flowers ... as a thank you to this gentleman who had brought me pleasure just watching "Ballet Russes". And I realized what a magnificient career he had and the pleasure he has brought to thousands of others.

We approached the wrought iron gate and rang the bell, and some time later, a wiry gentleman appeared and I knew instinctively he was George Zoritch. Bewildered, he wondered why this woman and friend were standing at his gate with flowers and he graciously invited us in where we sat and chatted for a long period of time.

Regaling us with stories of his career, telling us he still did his exercises every morning in bed before he rises, talking about his days at the Unversity of Arizona, and his impressions of people with whom he danced, George enthralled us.

We looked at awards and memorabilia, and fixed the flowers in a vase for him. And he brought out his recording, "Ballet Mystique Behind the Glamour of the Ballet Russe" A Memoir by George Zoritch. It is "the piano music performed during the barre and centre exercises by Vladimir Kudryavtsev, the Concertmaster" of the Bolshoi Ballet, according to the accompanying insert. It also includes thirty one compositions by Semeon Gravilovitch Zoritch who "founded Classical Ballet at the Place in St. Petersburg Russia" according to another insert. This gentleman was George's Great Grandfather who founded Classical Ballet at the Palce in St. Petersburg, Russia.

The Premier Danseur was a protege of Mr. Leonide Massine, "who created 11 leading roles for him". As George told us stories, his eyes danced obviously in delightful memory. He talked about his relationship with George Balanchine, the leading ballerinas with whom he partnered, his life in Europe, and his coming to America and dancing here.

I saw George at the post office one day mailing his letters and we all remarked upon his photo stamp, a replica of the famous photo "Le Spectre de la Rose". Truly I am grateful the little Russian boy, born in Moscow in 1917, graced this world with the beauty of his movements and dance interpretations. We are all richer for this creatively unique life.

Resources: http://www.GeorgeZoritch.com

http://en.wikipedia.org/wiki/Ballets_Russes

http://en.wikipedia.org/wiki/George_Zoritch

Videos of George Zoritch: http://video.google.com/videosearch?hl=en&q=Geroge+Zoritch&um=1&ie=UTF-8&ei=xmf0SpmqFZSusgOi-s0R&sa=X&oi=video_result_group&ct=title&resnum=4&ved=0CBwQqwQwAw#

New York Times Obituary http://topics.nytimes.com/topics/reference/timestopics/subjects/d/deaths_obituaries/index.html

MDIA-Not Much Change For Ethical Lenders...

Terry Bishop (RE/MAX Excalibur) — Wed, 05 Aug 2009 10:18:06 -0500

The new Mortgage Disclosure Improvement Act (MDIA) promulgated by the federal government is not much of a change for lenders who were ethical and disclosed costs initially; but for those unscrupulous lenders who performed "bait and switch" during the home buying heyday, lamentations are rampant.

"The purpose of the new Mortgage Disclosure Improvement Act is to insure buyers are fully aware of closing costs and interest rates which they will be charged on their mortgage loan," said Courtney Walker, Vice President of Nova Home Loans. "They don't get to the closing table and are surprised by the numbers", Walker continued.

Within three days of applying for a loan, a full cost disclosure must be given to the applicant. The cost disclosure must be given before any fees are collected, with the exception of any fee charged for pulling the consumer's credit report, according to the amendment to Regulation Z, Truth in Lending. Closing cannot take place for seven days unless specifically requested for an emergency.

In the heyday, reputable lenders provided cost estimate sheets for their clients with the closing costs and loan costs spelled out, including the interest rate. Good Realtors helped clients by providing clients with names of honest lenders and kept an eye on closing costs, making sure there were no pre payment penalties or other charges unless the client understood the terms of the loan.

This legislation comes as a result of the numbers of people who said they did not understand the terms of their loan and the loan costs, such as the option arm loans or the first 80% fixed rate loan with an adjustable rate for the second loan.

"The point of the MDIA is that whenever closing costs or interest rates change, the APR reflects these changes in the closing costs and interest rate." Walker gave the following example: A person is offered a fixed rate and the APR is stated, and then offered a 2% rate with a $10,000 up front charge. How does that person know which loan to choose? "How are they going to compare an apple with an orange? The APR will help do that", Walker said.

Under the new legislation, if the APR moves 1/8 of a point either up or down, the lender must redisclose to the client "to insure that the buyer is fully aware". The borrower must be given a reasonable amount of time to review the new numbers. "The buyer must receive, review and acknowledge in writing the new disclosure" and if the new numbers are not approved, then the buyer must change courses.

Escrow fees are included in the APR so it is important that the Title Company named in the buyer contract documents is not changed. Title companies in the Phoenix area charge different rates than the title companies here in Tucson. For people purchasing foreclosure or short sale properties, any costs the buyer pays, such as allowable seller closing costs, must be included in the APR.

If the market moves tremendously, and interest rates go down, redisclosure is mandated, even if to the borrower's advantage. Lenders cannot collect upfront fees from borrowers at the time of application. These include appraisal fees and lock in fees.

Lock in fees are relatively new and are similar to earnest money, Walker said. The purpose of up front lock in fees is because investors (of the loans which the borrower is applying) are beginning to penalize lenders for not delivering on loans for which borrowers apply. This is often due to borrowers shopping rates. "Time, money, and effort is put into getting a loan approved" Walker said, and the lock in fee shows good faith on the part of the borrower. The fee is remitted at the close of escrow as a credit on the closing statement.

The new requirements do not add time to the loan process, Walker said. "Nova underwrites locally, draws the docs locally, and funds from its own money," she added. "Even with FHA and VA loans, we have basically a 30 day turn around time".

Some lenders are recommending a 45 day closing time, so that if a contract is written August 1, closing should be stated September 15. A Realtor who works closely with the lender is your best advisor, knowing the turn around times of lenders is even more imporant, and it underscores the need to use local lenders.

Resources:

Nova Home Loans http://www.lancedickson.com

Federal Reserve Board Press Release

http://www.federalreserve.gov/newsevents/press/bcreg/20090508a.htm

Federal Register: http://edocket.access.gpo.gov/2009/pdf/E9-11567.pdf

I posted this to my blog this morning: http://www.terrybishop.com/blog

Plan Ahead If Thinking About Buying In Tucson...

Terry Bishop (RE/MAX Excalibur) — Tue, 04 Aug 2009 10:23:56 -0500

Many out of town people come to Tucson with the idea of purchasing property. In today's real estate market, they can cherry pick amongst bargain properties. But now, with new requirements set forth by lending institutions and the federal government, a little planning goes a long way.

From the comfort of one's home in Anytown, USA, a future Tucson resident can use the websites provided by local lenders to apply for home loans. It should be emphasized, local lenders, regardless of where you are moving, are the people who know and understand the quirks of the marketplace. If applying for a loan in Tucson, the lender in upstate New York has no idea what our market conditions are, nor should he/she be expected to know. Conversely, a lender in Tucson does not know the market in upstate New York.

Many of the lenders advertised on television or the internet do not know the local market. They sit in a huge room with a computer screen and sometimes the borrower does not even talk with the same person twice. This may not be true for all internet and lenders advertised on television, but real estate agents have a bevy of horror stories because these lenders do not know or understand Arizona law.

Using local lenders, (three are provided below) and talking with a Realtor who can make initial contact with these lenders, will get you the very best service. A pre approval and LSR (Loan Status Report) for the Realtor prior to looking at property, will insure the buyer of being able to make an offer without delay.

A LSR is required for all offers. This tells the seller and the seller's agent, that the buyer has been preapproved for the loan requested and that the buyer has talked with a lender and provided the lender initial data requested. Unless financial conditions dramatically change, the buyer should be able to consumate the transaction. The purpose of the LSR is to prevent people from making offers on properties, (and tying up properties from future potential buyers) , which the original buyer cannot afford.

While in the armchair comfort of home, the newcomer to Tucson can determine what documents will be needed by the lender and can either fax or mail copies of those documents. Being pre approved streamlines the entire process, and in a market where interest rates jump from day to day, or from morning the afternoon, plus the new lending requirements regarding time frames and disclosures by lenders to the borrower, the soon to be new Tucson resident, sits in the cat bird's seat.

Lenders:

Lance Dickson Nova Home Loans http://www.lancedickson.com

Tom Heath http://www.theheathteam.com

Jerry Sundt http://www.sundtmortgagegroup.com

Realtor: http://www.terrybishop.com

e-mail: terry@terrybishop.com

Observations from a Client's Perspective...He Who Hesitates, Loses

Terry Bishop (RE/MAX Excalibur) — Mon, 03 Aug 2009 07:54:45 -0500

We have been working for a few weeks now trying to determine what type of property to purchase...single family, duplex, home with a guest house...for an investment property. Trying to sort out what is most advantageous for a new investor is not always easy since there are so many things to consider.

What area?

What type of property? A property= high end; B property=middle of the road; or C property= lower end.

What price range?

Who is the audience to whom the rental is targeted?

Laying the appropriate groundwork is paramount to success; understanding the accounting when one owns rental property; understanding the advantages of a 1031 tax deferred exchange; deciding whether to form an LLC, all are important considerations. This means talking with professionals; the accountant, the facilitator for information, and possibly an attorney. Formulating some type of long term plan with short term goals so we are all on the same page regarding the map to success comes next.

But in the meantime, we have been looking at various types of property to familiarize my client with the maket. There seemed to be plenty of potential candidates for purchase on the market a month or so ago, but suddenly, she said, everything she liked has a contract on it.

The real estate market is definitely stirring. Properties priced correctly and which show well are not languishing on the market as they were a few months ago. Second homes and retirement homes are showing signs of life. Adding steam to the market is Tucson's AARP designation as the number one place to live which is both an affordable and desirable retirement area.

Real estate prices are still low, interest rates remain below 6%, and although requirements for loans have tightened somewhat, money is available. People are putting their homes on the market, there still is an abundance of short sales and foreclosure properties, and savy investors are purchasing properties on the steps of the courthouse.

A good cross section of housing is available and Tucson remains a buyer's market. It is time to scoop up there bargains because this market will not last. It always boils down to supply and demand.

If you are thinking Tucson, now is the time to act. Use a local lender who knows and understands our market here, and a good Realtor who listens to your needs and wants. Take a look at my web site to garner information which will help you as well as provide the opportunity to input your own criteria and see what is out there, and if you don't have a Realtor now, contact me. I am always willing to help!

Take the comments of my client seriously..."all the good properties suddenly have contracts on them!"

Lenders:

Lance Dickson - Nova Home Loans - http://www.lancedickson.com

Tom Heath - The Heath Team - http://www.theheathteam.com

Jerry Sundt - VIP Mortgage http://www.sundtmortgage.com

Realtor: Terry Bishop http://www.terrybishop.com

Your Credit Score...A Valuable Asset...Protect It! (Part Two)

Terry Bishop (RE/MAX Excalibur) — Thu, 30 Jul 2009 09:18:22 -0500

Purchasing real estate is one of the prirmary reasons the consumer should make sure the credit score does not contain errors. A difference of 1 % between a 5.5% loan and a 6.5% loan is $128.56 a month. At 5.5%, payments principal and interest are $1135.57 and and 6.5%, $1264.13 a month, Over a 30 year loan, this totals $46,283...that is a lot of money!

When information on a credit report is inaccurate, it should be corrected by the consumer as soon as possible. The consumer can correct and request deletion of information. The Federal Trade Commission has a web page devoted to credit report including a brief online video. According to the FTC, check the credit report annually

"Because the information in your credit report is used to evaluate your applications for credit, insurance, employment, and renting a home, you should be sure the information is accurate and up-to-date. In addition, monitoring your credit is one of the best ways to spot identity theft. Check your credit report at least once a year to correct errors and detect unauthorized activity."

The site provides information on what to do, how to request information. and how to dispute and correct the credit report mistakes. This should be done by the consumer, turning the problem over to a credit counseling agency costs money and may not rectify the inaccuracies.

Writing letters to each of the credit agencies detailing the inaccuracies and requesting an investigation into the problem is preferable. The consumer should include name, address, social security number, spouse's name, previous addresses for the last five years, and phone number and request a corrected copy of the credit report.

According to Patrick Ritchie, "42% of the credit problems are medically related". Many people put medical costs onto credit cards or are reported as delinquent by medical professinals including hospitals because of disputes between medical providers and insurance companies. The consumer may believe bills have been paid, but the insurance company has not anted up and the debt is outstanding. Even when the debt is paid, the provider often does not contact the credit reporting agencies to correct the inaccurate report.

Parents often co sign for their children. The purpose of co signing should be a red flag; this person cannot get the credit requested on his/her own. Real Estate agents see this situation all to frequently when people wanting to purchase a property cannot do so because they have co signed for a friend or relative who did has not meet the debt obligation. In many instances, the would be purchaser of a home had stellar credit which was decimated by the friend or relative defaulted and had no idea of the default until the credit report was pulled for loan information.

Divorce can bring credit issues as well. Each spouse should insist his/her name is removed from all joint credit accounts and new cardsestablished in each individual's name. Any joint debt should be resolved if possible, prior to the dissolution of the marriage. Debt holders can go after either party, and people contemplating divorce are trying to build a new life which can be difficult with derogatories on credit reports. Credit card companies are not bound by the terms and conditions of a divorce decree.

Credit is a necessity of life in today's world. We need it to rent a car, sign up for cable, rent or buy a place to live. Credit is also a convenience, it is the roadway to lower interest rates, and it should be managed carefully and protected like gold.

Resources:

The Federal Trade Commisison: http://www.ftc.gov/freereports

Patrick Ritchie http://www.TheCreditRoadMap.com

About credit cards and divorce: http://www.creditcards.com/credit-card-news/dividing-credit-card-debt-divorce-1282.php

Equifax Credit Information Services, Inc. http://www.equifax.com

P O Box 740256 Atlanta, GA 30374 -0241 (800) 685-1111

Trans Union Corporation http://www.tuc.com

P O Box 2000 Chester, PA 19022 (800) 916-8800

Experian Http://www.experian.com

P O Box 2104 Allen, TX 75013 (888) 397-3742

I posted this to my blog this morning at: http://www.terrybishop.com/blog

Your Credit Score...A Valuable Asset...Protect It!

Terry Bishop (RE/MAX Excalibur) — Wed, 29 Jul 2009 09:18:10 -0500

In this era of people tightening their belts, pulling back on many purchases, and the occassional missed payment, credit scores can be severely bruised. A credit score can impact many facets of life, from obtaining the job since many companies now look at credit scores as a component of evaluating risk, to getting the best rates for insurance policies.

Naturally credit scores impact the amount you pay for credit; the price of a interest on a mortgage, the price of interest on a car, or any loan at a financial insittution. The best credit terms used to go to people with a score of 720 or better, but now lenders look at scores of 740.

The law states that consumers are entitled to one free credit report which can be obtained from

http://www.annualcreditreport.com

There is no charge for this report. This is not the advertized site seen and heard on television and radio and in print media which is not the government sanctioned web site. According to the U.S. Public Interest Research Group, approximately 70% of credit reports studied "contain errors of some kind" said Patrick Ritchie, author of The Credit Report Map.

Obtaining a credit report and keeping the credit report over a period of years to use as the basis of comparision is wise. When disputing errors in the report, previous credit reports can be used as referral tools. The Fair Credit Billing Act (FCBA) and the Electronic Funds Transfer Act (EFTA) set procedure for consumers to dispute items on the credit report.

The three main credit scoring agencies are Equifax, TransUnion, and Experion. They take information from creditors regarding payment history of debt, balances, payments, high credit, as well as data from the public records.

Credit score components are 35% pyament history; 30% amount owed; 10% inquiries and new debt; 10% types of credit; and 15% length of history. It is wise not to cancel a credit card, especially if it has been in use for a long period of time, since it will influence the length of history component.

The three credit agencies give higher scores to people who keep credit card debt less than 50% of the maximum credit allowed, regardless of payment history. It is better to have five credit cards with a $5,000 limit each carrying balances of $1,000 each (20% of the maximum allowable amount) than one card with a $10,000 limit carrying a balance of $5,000 (50% of the allowable maximum debt). The amount owed is the same, but the scenario is viewed differently; the assumption is made (accurately or inaccurately) that the person carrying the five cards manages debt better than the person carrying one card.

It is also important to periodically use all credit cards, even if for a small $5.00 payment or for a monthly bill like Netflix or the gym. This is construed as good money management. If in a financial squeeze, at least make the minimum payment on every card, rather than trying to make a larger payment on one card at the expense of the others.

Tomorrow: More about Credit Scores

Resources:

http://www.TheCreditRoadMap.com - Patrick Ritchie

Federal Credit Reporting Act: http://www.ftc.gov/os/statutes/031224cra.pdf

The Credit Report - http://www.annualcreditreport.com

Equifax http;//www.equifax.com

TransUnion http://www.tuc.com

Experian http://www.experian.com

I posted this to my blog this morning at: http://www.terrybishop.com/blog

KUDOS to Tucson from AARP...

Terry Bishop (RE/MAX Excalibur) — Tue, 28 Jul 2009 08:01:24 -0500

AARP has named Tucson the number one place to live for the "active adult" community, alias the "mature adult" community. Looking to a simple life, Tucson garnered top kudos over all other places in the nation.

And indeed, Tucson is a grand place to live. I willingly traded months of grey, drizzly weather...and shoveling snow for a couple of months of "dry heat". Early mornings are perfect for a meandering walk and after dusk lends itself to upbeat outdoor concerts.

Tucson has integrated culture which makes it a vibrant community, blending it's history as a part of Sonora Mexico prior to the Gadsden Purchase, with that of Native American culture, and Chinese culture. The white man found Tucson with the advent of the railroads and brought with them new ideas of architecture, lumber, and eastern accountrements.

Tucson is rimmed with mountain ranges; the Catalinas to the north-northeast, home of the nation's southermost ski area; the Rincons to the east; the Santa Ritas to the south, and the newest mountain range, the Tucson Mountains, to the west. The topography is different in all the areas, but all provide interesting and diverse hiking paths and birding areas, one of the criteria of the AARP study.

Combine that with exceptional cultural activities, it's own Symphony, a myriad of live theaters, the Center for Creative Photography which houses the Ansel Adams collection, the Tucson Museum of Art, DeGrazia Gallery in the Sun, and excellent small galleries, Tucson is making it's name in the art and music world. With one of the best Jazz Societies in the United States, a vibrant Blue Grass Society, Chamber Orchestras, Pops In the Park, citizens can toe tap to any rhythmn.

As someone enthusiastically once said to me, "the healthiest I've ever been is when I lived in Tucson". There are various sports activities, Senior Olympics, city owned tennis courts, golf courses galore, an assortment of classes offered by Parks and Rec, and classes in all types of activities ranging from Pilates to Weight Training to Salsa dancing at Pima Community College.

Combined with the bragging rights of 360 days of sun, Tucson offers its inhabitants low cost activities, the beauty of the desert, affordable housing in comfortable communities, local produce at Farmer's Markets, a plethora of volunteer activities, and excceptional medical facilities. (Scan previous blogs for information about the St. Philip's Farmer's Market, and a series about hospitals in the Tucson area.)

AARP really nailed it correctly! Tucson is the place to live!

Resources:

Tucson Convention and Visitors Bureau:

http://www.visittucson.org/

Tucson Chamber of Commerce:

http://www.tucsonchamber.org/

HR 3044... Call to Action

Terry Bishop (RE/MAX Excalibur) — Mon, 27 Jul 2009 08:42:32 -0500

U.S. Representative Travis Chiders from Mississippi has sponsored with 37 co sponsors House Bill 3044 which calls for an 18 month moratorium on the Home Valuation Code of Conduct. The bill, sucinctly states:

SECTION 1. MORATORIUM ON THE HOME VALUATION CODE OF CONDUCT.

During the 18-month period beginning on the date of the enactment of this Act, the Home Valuation Code of Conduct announced by the Federal Housing Finance Agency on December 23, 2008, shall have no force or effect.

No one from Arizona has co sponsored the bill. The bill effectively puts a moratorium on Andrew Cuomo's call for Appraisal Management Companies (AMC) and allows time to develop rules and regulations governing the appraisal industry.

As well as lenders, Realtors, and Wall Street, the appraisal industry has also been cited as a cause of the economic melt down. It is alleged that appraisers were given a "target price" to meet by lenders which over valued the property and contributed to "loan fraud". Ironically, many of the large Appraisal Management Companies are subsidiaries or sister companies of the large banks which are currently underwriting Fannie Mae and Freddie Mac loans. These are the types of loans governed by the Home Valuation Code of Conduct.

Tom Heath, in his blog post Saturday, takes the Federal Housing Finance Agency to task and its Director, James Lockhart, for knowing little about the Home Valuation Code of Conduct. Heath is President elect of the Southern Arizona Mortgage Lenders Assocation and was guest blogger at this site last week. With his permission, I am reposting Heath's comments.

http://theheathteam.wordpress.com/2009/07/26/fhfa-is-out-of-touch-with-reality-and-hvcc-must-go-away/

Anyone concerned with real estate should take time to read this post and contact state representatives to support House Bill 3044 calling for the mortatorium on the Home Valuation Code of Conduct.

Resources:

http://www.govtrack.us/congress/billtext.xpd?bill=h111-30

http://www.govtrack.us/congress/bill.xpd?bill=h111-3044

This was posted on my blog this morning at: http://www.terrybishop.com/blog

Weekend Wanderings..."Public Enemies" and The Real Hotel Congress

Terry Bishop (RE/MAX Excalibur) — Fri, 24 Jul 2009 08:40:02 -0500

Johnny Depp as John Dillinger and "Public Enemies" is a hot box office success. At the beginning of the year, the pols warned us of the vicissitudes of The Great Depression, revisited, the very event which made John Dillinger a darling amongst the populace So although times are not similar, the mindset is right for a great gansta' flick.

"The Jackrabbit" took the rap for many bankers who allegedly embezzled funds from their institutions and who almost welcomed the shoot 'em up, hold 'em up robberies since the stickups covered the tracks of the crooked bankers. Dillinger and his gang criss crossed the Illinois, Indiana, Wisconsin, Michigan and Ohio areas eluding law enforcement while "borrowing" fast cars, stealing ammunition, and stockpiling their dwindling supplies of cash with another job for loot.

Needing to cool off and lay low, the men headed south. Alan May and Marilyn Bardsley weave a great tale... http://www.trutv.com/library/crime/gangsters_outlaws/outlaws/dillinger/6.html and clicking on the link is well worth the effort! Let them tell the story.

But Dallas Scott, the Front Desk Clerk at the Hotel Congress and a Certified Tucson Tourism Ambassador, explains there was a fire in the basement of the Hotel Congress in January 1934, which licked up the elevator shaft and to the third floor. Dillinger had not arrived back in Tucson with Billie Frenchette, his all time love, but was due that afternoon.

Charles Makley and "Booby" Clark were guests at the Hotel Congress and had rooms on the third floor. The men bribed the firemen to go into the room to get two bags, according to Scott. One bag contained a number of weapons, and the other bag held $24,000. Dillinger and Billie Frenchette arrived that afternoon.

However, one of the firemen recognized either Makley or Clark and notified the Tucson's finest the following day. Tucson Police apprehended "The Jackrabbit" and his colleagues without a single shot being fired, something even J. Edgar Hoover's g men could not accomplish! According to Scott, Dillinger et al were apprehended on 2nd Avenue. The third floor of the hotel was never rebuilt because the German couple who owned the hotel did not have the money.

Each year on January 21, the Hotel Congress holds Dillinger Days where there is an embellished re-enactment of the capture of the American idol gangster, complete with vintage cars, food and music of the 1930's and where people dress as if they lived during that period.

The Hotel Congress has not changed much since that time, said Scott. It tries to keep the ambience of that era. Located at 311 East Congress in downtown Tucson, the hotel is home to The Cup Restaurant and a hopping lounge which is attractive to University of Arizona college students.

One thing the Hotel Congress is not, and that is the red brick building showing in the movie, "Public
Enemies" which brought a contemptuous laugh from the theater crowd.

Resources:

http://www.trutv.com/library/crime/gangsters_outlaws/outlaws/dillinger/6.html

John Dillinger and Tucson Arizona

http://en.wikipedia.org/wiki/John_Dillinger

Author of "John Dillinger" http://en.wikipedia.org/wiki/Dary_Matera

From the Federal Bureau of Investigation: http://www.fbi.gov/libref/historic/famcases/dillinger/dillinger.htm

AAR Calls for Special Session to Address Issues Resulting for Passage of SB 1271 - Anti Deficiency Legislation

Terry Bishop (RE/MAX Excalibur) — Thu, 23 Jul 2009 11:15:25 -0500

The path taken by people trying to get out from under negative equity or mounting bills is littered once again with potential legal problems for Realtors, buyers, and sellers. The passage of the Arizona Senate Bill 1271 emphasizes the need for people to seek legal counsel when contemplating a foreclosure or short sale.

The Arizona Association of Realtors (AAR) requested that Governor Jan Brewer amend the call for a Special Session of the Lesligature to address the issues resulting from the passage of Senate Bill 1271, otherwise known as the Anti Deficiency legislation.

This bill states that within 90 days of the sale of property under a trust deed, "an action may be maintained to recover a deficiency judgment against any person directly, indirectly, or contingently liable on the contract for which the trust deed was given as security..."

This does not apply to any property 2 ½ acres or less used as a one family or single two family dwelling by the trustor for at least six months and for which has a certificate of occupancy was issued

The legislation continues that the deficiency judgment will be for an amount equal to the amount owned to the beneficiary as of the date of the sale, as determined by a court. This can be for the difference in the fair market value, less the amount of liens owed, and includes any interest which may be incurred.

The party seeking remediation must act within the 90 day period, and if no action is pursued, the proceeds of the sale are considered full payment of debt.

In the letter to Governor Brewer, Tom Farley, CEO and Cheif Lobbyist for the AAR, points out this bill applies people with second homes, rental property, and family owned property. Developers, Farley said, are not protected . The statute points to the "subtle difference" in the property "being utilized as a one or two family dwelling" which is how the existing statute reads, rather than the amended version which specifies "the focus is on the trustor themselves utililizging the property instead of the property being utilized".

Farley's letter came as a result of researching case law and the consequences of this amendment. He substantiates the letter with case law from various jurisdictions. Lenders receing Troubled Asset Relief Funds (TARP) are authorized to seek deficiency judgments against property owners after foreclosure. Deficiency judgments allow for the judgment creditor to garnish the wages of the judgment debtor, employ collection agencies, garnishment of non earnings such as bank depoits, take non-exempt property and sell it at a public auction to satisfy the debt, and place a judgment lien on real property owned or later acquired by the judgment debtor.

The legislation came as a result of lobbying from the Arizona Bankers Association. Arizona is one of the highest foreclosure/short sale states and Arizona bankers would like to recover some portion of the millions of dollars lost. The bill, as of this writing, is scheduled to go into effect September 30, 2009. Unless rewritten in the special session, the courts may be filled with lenders seeking deficiency judgments against former homeowners, which will create another series of problems including a rush to file for Bankruptcy on the part of judgment debtor.

Resources:

Text of SB 1271:

http://www.azleg.gov/legtext/49leg/1r/bills/sb1271s.pdf

Arizona Association Realtors:

http://aarnews.com/

http://aarnews.com/?s=SB+1271&x=26&y=9

Other Blogs about SB 1271:

http://en.wordpress.com/tag/sb-1271/

The Home Valuation Code of Conduct...Another Perspective by Tom Heath

Terry Bishop (RE/MAX Excalibur) — Wed, 22 Jul 2009 08:53:18 -0500

The Home Valuation Code of Conduct and how it impacts Tucson real estate is also a concern of Tom Health, Vice President of Advocacy for the Southern Arizona Mortgage Lenders Association, Legislative Chair for the Arizona Mortgage Lenders Assocation and Director of the Arizona Association of Mortgage Brokers. Tom is guest blogger today and what follows are his comments about the HVCC.

Thanks for taking the time to shed more light on the Home Valuation Code of Conduct (HVCC). You touched upon several issues that are critical in understanding why we have to recall this policy and put in place a more meaningful method of ensuring quality appraisals.

You mention this is a "de facto regulation," which is the perfect description. HVCC was not implemented by an agency as a regulation, or by Congress as legislation; it was an agreement between one man and two, at the time, privately held companies. The policy of HVCC circumvented standard public commenting periods and debate that would have been required if this were an actual regulation or law. The Attorney General of New York, Andrew Cuomo, threatened Fannie Mae and Freddie Mac with massive lawsuits if they did not comply with this code. The weak companies feared "tobacco type" lawsuits across the country and succumbed to the AG's demands.

The foundation for this agreement was an investigation launched by the AG into alleged appraisal fraud resulting in values that were unrealistic, but led to huge earnings for a large national lender and their partially owned subsidiary appraisal management company (AMC). Whether the attorney general had a foundation for his threats is not known, because as part of the agreement was to keep the results of the investigation undisclosed.

Due to the implementation of the HVCC, most lenders now work with an AMC, which is an unregulated entity and is often owned, in part or in totality, by the bank for which it performs appraisals. Ironically, Cuomo's code has led to the dominance of the very structure that prompted the investigation that led to the code.

What was intended to protect consumers from unscrupulous originators and appraisers has created a more expensive process for the borrower and created a lower quality and less reliable product. You accurately point out that the cost of a report has increased, but the compensation to an appraiser has decreased. Quality appraisers are unable to work for the reduced income and therefore, orders go to less experienced practitioners. Many times, the appraiser is brought in from areas outside of the market and is unfamiliar with trends and characteristics of the property being inspected.

While many are focusing on the inaccurate values being returned, the emphasis should be placed on the poor methodology of those reports rather than the value itself. Anecdotal evidence is pouring in that, appraisers are brought in from areas outside of the market and are unfamiliar with trends and characteristics of the property being inspected. Two reports were forwarded to me from a listing agent representing a property in a historic part of Tucson. The first report was well below the agreed upon sales price and used comps that were not representative of the property's historical characteristics. The sale fell through. Seller reduced price, a new buyer was found, a new lender was used, and a new appraisal was performed. This report used comps more akin to the property being inspected and value came in 10% above ORIGINAL sales price.

In addition to cost and quality, the code has presented a "portability" issue. Consumers typically pay for the appraisal at or prior to time of inspection. While the code allows the report to be transferred to another lender if the borrower so wishes and the appraisal is HVCC compliant, the reality is much different. One large national lender has a written policy that it will only accept reports completed by its wholly owned, subsidiary AMC. Any borrower wishing to switch to this lender would likely have to have to bear the cost of another appraisal. This same lender also stipulates that it will only release its reports to other lenders if the borrower is declined or counter offered on the terms of the loan they requested. In other words, if that lender wants the loan, they will not release the report even though the consumer has paid for it.

The only vocal supporter of HVCC is a professional group, Title/Appraiser Vendor Management Association (TAVMA), whose members are large AMC's. The Appraisal Institute has supported the HVCC mission of appraiser independence, but has asked for changes. Fannie Mae and Freddie Mac are noticeably silent on the code.

There is, however, loud opposition to the bill from the National Association of Realtors, the National Association of Home Builders, the National Association of Mortgage Brokers, and many independent appraisers.

The prevention of appraisal fraud and coercion has to be eliminated, but HVCC is a poorly planned and improper tool for the job. Congress has introduced HR 3044 that would place an 18-month moratorium on HVCC and allow regulators to create a workable solution that takes the good intentions of HVCC and melds them with practical procedures that can strengthen the industry and protect consumers.

Tom is with Consolidated Lenders, The Heath Team

http://www.theheathteam.com/

House Bill 3044:

http://www.govtrack.us/congress/billtext.xpd?bill=h111-3044

Tucson Real Estate and the Home Valuation Code of Conduct

Terry Bishop (RE/MAX Excalibur) — Tue, 21 Jul 2009 07:17:10 -0500

Tucson real estate sales, although improving, now is also adversely impacted by the Home Valuation Code of Conduct (HVCC), a de facto regulation promulgated by Andrew Cuomo, Attorney General of the state of New York in conjunction with Freddie Mac and Fannie Mae. Loans which are not Fannie Mae or Freddie Mac loans are not governed by the HVCC.

The intent originally was to insure appraisals are done in accordance with independent safeguards, that appraisers were not coerced to hit a value specified by the lender or loan officer. The HVCC lays out ten areas of concern Cuomo had regarding lenders and appraisers. But rather than independent appraisers, Appraisal Management Companies (AMC) have surfaced and are a profit center for large banks which underwrite many of the Fannie Mae and Freddie Mac loans. Appraisals must be ordered and "The Code requires the lender or any third party specifically authorized by the lender to select, retain, and provide for all compensation to the appraiser"1

As a result, many independent appraisers and small appraisal companies can not longer afford to remain in business unless they join one of the AMC pools. Lenders, erring on the side of caution, may no longer use these small independent companies because they are not an AMC.

Additionally, the cost of an appraisal has escalated. There is another level of management involved with the AMC. Appraisals used to cost between $325 and $375; now they are $400 plus. Ironically, the appraiser, the person with the expertise, is now paid at least $100 less than pre-AMC. The differential goes to the AMC.

Appraisers new to the market join the pools to beef their resume and gain experience. Lenders request the appraisal from an AMC approved by the entitity subsequently underwriting the loan. Appraisals may be done by people who do not know the area,

Appraisers have guidelines and take some of their comps from within a mile of the property. Tucson properties have been appraised by out of area appraisers and these appraisals may come in unusually low. In a one mile segment, one 1/2 mile area may have custom built homes valued at $800,000 whereas the other 1/2 mile segment may have tract homes valued at $250,000. Each property may be 3,000 square feet but looking at paper, the appraiser does not know the difference. This skewing would occur with automated valuation models which are not prohibited by the code. (http://en.wikipedia.org/wiki/Automated_Valuation_Model)

As a Realtor representing my client, I often spoke with the appraiser and provided my comps with other pertinent information. If I represented a property and knew the comps showed two distressed properties, I made sure the appraiser understood. Perhaps I knew a property had been flooded or there had been a fire, this information materially impacts the value of that home...it should not materially impact the value of the home I am trying to sell. Understanding the area or the history of the area and properties is part of the knowledge base used to make good decisions.

1- Fannie Mae guidelines FM 0109 page 2 2009

Resources:

Home Valuation Code of Conduct

http://www.freddiemac.com/singlefamily/pdf/122308_valuationcodeofconduct.pdf

http://www.appraisalinstitute.org/ano/current.aspx?volume=10&numbr=11/12

https://www.efanniemae.com/sf/guides/ssg/relatedsellinginfo/appcode/pdf/appraisalguidance.pdf

http://www.freddiemac.com/singlefamily/hvcc_faq.html

http://www.fhfa.gov/webfiles/277/HVCC122308.pdf

http://narblog1.realtors.org/mvtype/president/2009/06/all_is_not_quiet_on_the_midwes.html

http://narblog1.realtors.org/mvtype/appraisalinsight/cuomo_agreement/

http://appraiseractive.blogspot.com/2009/07/hvcc-update-nar-president-charles.html

I posted this to my blog at http://www.terrybishop.com/ blog this morning. Feel free to comment.

Free On Line Book About Foreclosures...

Terry Bishop (RE/MAX Excalibur) — Mon, 20 Jul 2009 07:14:29 -0500

Any number of life events can cause a homeowner to become delinquent on his or her mortgage payment: loss of job, divorce, death, incarceration, medical bills, caring for children's children, caring for parents, adjustments in mortgage terms, accident. These are life's events. Mortgage delinquency is not planned.

The State of Arizona, through Attorney General, Terry Goddard, and the Arizona Foreclosure Task Force, has issued a booklet about foreclosure which can be download from your computer. The workbook, which provides timely and accurate information, is at:

http://www.arizonaforeclosuretaskforce.com

Although this information was written for the citizens of the Grand Canyon State, the worksheets and general information pertain to anyone. The specifics of foreclosure in Arizona may differ in your state; check with your local HUD office or your own Attorney General's office, or seek the counsel of a qualified attorney and Realtor who understand the foreclosure process.

The booklet warns against "scams" where people promise to keep you in your home or suggest you can get a better interest rate. The old adage applies: "If it's too good to be true, it probably is".

Although it is often frustrating, people who believe they may be in financial trouble, should contact their lender immediately and determine if any "work-out" can be done. Keeping a journal of information detailing the time and date, plus the general conversation and to whom you spoke is important. Chances are you will not speak to the same person when you make calls and having this ready reference will be be invaluable.

You should be prepared to detail the "hardship" you face and a "hardship letter" will be required if you eventually go to a "short sale". The worksheets in the booklet help the consumer detail how and when the hardship took place.

For the state of Arizona, a list of housing counselors is provided. If you are located outside of Arizona, call your local HUD office (Department of Housing and Urban Development listed under the Federal Government). Housing counselors are trained to work with the lenders and may have more success than you as an individual homeowner may have. They will need your information from the worksheets.

Budget forms are provided since the lender will want to know about your personal assets and liabilities. Easy to use forms help determine what type of loan (s) you may have on your property. Once you complete this information, you should have a good understanding of your financial situation and whether a short sale or foreclosure is the only option, or whether you can keep your home.

Options are detailed if you elect not to keep your home which also includes bankruptcy and the types of bankruptcy. Finally there is a segment on scams and how to recognize a scam.

Remember, this is public information and as soon as Notice of Sale if filed with the Recorder's Office, people will come out of the woodwork offering to "help" you. If you know of someone who may be facing financial difficulties, share this information with him or her.

Be proactive and knowledgeable, for in knowledge there is power.

Resources:

http://www.arizonaforeclosuretaskforce.com/wp-content/uploads/2009/05/2009-arizona-consumer-foreclosure-info-wrkbk.pdf

www.hud.gov

Weekend Wanderings...Sonoita, Eligin and Patagonia

Terry Bishop (RE/MAX Excalibur) — Fri, 17 Jul 2009 11:12:41 -0500

Tucson summer is here...temps are plus 100 and the humidity has brought monsoon weather. The dew point has reached 54 for three successive days. Tucsonians who want a respite from the warm weather often trek to Summerhaven, a small village in the Catalina Mountains at an elevation of about 8,000 feet. But now that the pie lady is no longer, going south for wine tastings is another option.

Sonoita, Elgin, and Patagonia are cool places, both in the euphemistic term and in the literal term. At an elevation of about 5,000 feet and within 45 minutes from Tucson, Sonoita is located off of I-10 traveling west on Naugle Avenue, otherwise known as State Highway 83. Elgin is to the east of Sonoita about nine miles, and Patagonia is about 12 miles south on Route 82.

The three communities are surrounded by mountains and national forests; the Santa Rita Mountains, the Patagonia Mountains, and the Coronado National Forest. Parker Canyon Lake, a popular recreational areas is to the south of Elgin on Route 83. Patagonia hosts a word class birding area.

Gently slopping grassy hills contrast with Tucson's craggy mountainous rocky terrain. The topography is dramatically different and one understands immediately how Sonoita became a big horse country area. The temperatures are cooler because of the elevation and in the winter, dustings of snow are not unknown occurances.

The amount of rainfall is conducive to wine growing, combined with cool summer nights. Traveling the back roads, grape arbors are a common sight. Several family owned wineries produce award winning Arizona wines. A jaunt to Arizona wine country, less than an hour from Tucson, is an interesting, educational and fun Saturday or Sunday excursion.

Known as the Mountain Empire, these areas also have small cafes and bistros which serve up vittles ranging from Mexican to gourmet, to cowboy. There are art galleries, gift shops, bookstores, as well as an abundance of bed and breakfasts, including a bed and breakfast where you can also board your horse.

The Mountain Empire Rotary, the Patagonia Area Business Association and the Sonoita/Elgin Chamber of Commerce offers a Mountain Empire Passport which provides discounts for many of the businesses in the area. For additional information, contact Charlie Kentnor of Realty Executives at 520-455-5560 or Tom Anderson at 520-250-7205, both of whom can assist in obtaining a passport.

Take a ride this weekend south...rather than to the Catalinas and enjoy what the Mountain Empire has to offer!

Resources:

http://www.patagoniaaz.com/

Six Month of Real Estate Statistics...Part 4

Terry Bishop (RE/MAX Excalibur) — Thu, 16 Jul 2009 20:17:48 -0500

Tucson real estate market trends begin to appear with numbers analysis over a period of months, often providing suprises. Relative to the numbers of properties sold compared to the number of listings in the area, the locations of Tucson showing the greatest number of sales include the Central area, the East, the South, the Southeast, and the Southwest. Each one of those areas in June had greater than 22% of listings sold.

Tracking the numbers, we can see improvement in almost all areas. Many homeowners, however, are keeping their properties off the market until the price points improve. This is particularly true in high dollar areas. Many properties which have been on the market more than six or nine months, are taken off the market by their owners.

The numbers of days on the market for listings sold was 83 in January, 85 in February, 85 in March, 78 in April, 85 in May and 80 in June. Sellers know in order to compete in today's market, properties must be priced "ahead of the curve" and show better than competing properties. Much of the competition today is in short sales and foreclosure properties.

By far, the greatest numbers of properties currently on the market are priced between $200,000 and $249,999. This is followed by properties between $300,000 and $399,999. Collectively, about three times as many properties priced between $100,000 and $200,000 with approximate $20,000 steps, are listed.

On the upper end of the price scale, as of June 2009, 432 properties are listed between $400,000 and $499,999; 519 between $500,000 and $749,999; 258 properties between $750,000 and $999,999 and 301 properties priced $1,000,000 or above.

The chart below shows the numbers of properties sold each month since January 2009 and the total number of listings for each of the 14 Multiple Listing areas. Looking at the percentages, one can discern where the properties are moving, The upside is most all areas have experienced increase in sales since January 2009.

Number Units	January	February	March	April	May	June


North - Sold	31	61	60	51	59	84
North - # Listings	780	790	842	822	802	740
% Sold	3.97%	7.72%	7.13%	6.20%	7.36%	11.35%

Northeast	21	30	35	44	47	52
# Listings	441	437	429	404	383	370
% Sold	4.76%	6.86%	8.16%	10.89%	12.27%	14.05%

Northwest	143	171	223	230	231	275
# Listings	2053	2029	1952	1818	1682	1626
% Sold	6.97%	8.43%	11.42%	12.65%	13.73%	16.91%

X Northwest	6	6	13	10	6	8
# Listings	117	109	119	117	114	119
% Sold	5.13%	5.50%	10.92%	8.55%	5.26%	6.72%

Central	73	58	102	101	134	164
# Listings	885	885	874	791	745	734
% Sold	8.25%	6.55%	11.67%	12.77%	17.99%	22.34%

East	39	44	64	72	78	76
# Listings	460	420	396	373	343	333
% Sold	8.48%	10.48%	16.16%	19.30%	22.74%	22.82%

South	56	66	86	91	85	99
# Listings	476	444	441	399	401	367
% Sold	11.76%	14.86%	19.50%	22.81%	21.20%	26.98%

Southeast	60	59	83	70	109	101
# Listins	583	557	522	473	459	410
% Sold	10.29%	10.59%	15.90%	14.80%	23.75%	24.63%

Southwest	67	52	85	68	90	107
# Listings	560	541	509	483	422	401
% Sold	11.96%	9.61%	16.70%	14.08%	21.33%	26.68%

X Southwest	16	25	40	30	32	27
# Listings	312	301	294	272	257	270
% Sold	5.13%	8.31%	13.61%	11.03%	12.45%	10.00%

X South	36	47	65	68	55	80
# Listings	546	542	557	493	490	469
% Sold	6.59%	8.67%	11.67%	13.79%	11.22%	17.06%

West	36	33	32	44	56	64
# Listings	399	407	412	385	343	345
% Sold	9.02%	8.11%	7.77%	11.43%	16.33%	18.55%

X West	4	5	4	3	5	1
# Listings	65	55	51	43	46	49
% Sold	6.15%	9.09%	7.84%	6.98%	10.87%	2.04%

X Northeast	0	2	0	0	0	1
# Listings	17	15	17	17	19	28
% Sold	0.00%	13.33%	0.00%	0.00%	0.00%	3.57%

Resources:

http://www.tucsonrealtors.org/tar-v2/MLS_Stats_June.pdf

Again, thank you Scott Weidamoyer who compiles statistics from where I generate these numbers for the Tucson Association of Realtors.

I posted this to my blog today: http://www.terrybishop.com/blog

Six Months of Real Estate Statistics ... Part 3

Terry Bishop (RE/MAX Excalibur) — Thu, 16 Jul 2009 00:52:06 -0500

When people don't know what is about to transpire, they do nothing. The total Tucson real estate sales volume between January 2009 and June 2009 definitely reflects that sentiment with an 88% increase in June over January. In February, the stimulus bill passed and people felt relieved that they now knew what Congress was doing. The sales numbers reflect people coming out of hibernation to purchase property.

January	February	March	April	May	June

126,459,654	153,410,306	187,802,298	178,509,827	206,198,371	237,996,501

The median sales price crept up slightly from $163,500 to $165,000 or about 1 1/2%.

January	February	March	April	May	June

$162,500	$ 177,500	$ 165,000	$ 163,900	$ 169,900	$ 165,000

Two years ago in June, the median sales price was $225,000. That is a drop of more than 26%. However, the average sales price tops $200,000 and is within a little more than one percentage point in June over January.

January	February	March	April	May	June

$206,282	$ 221,371	$ 203,464	$ 192,315	$ 202,747	$ 208,952

Tucson has 14 Multiple Listing Service areas and once again, the average sales price in the North- the Catalina Foothills area is the highest at $387,629, followed closely by the extreme Northeast which is the Redding Pass area at $375,000. The Northeast area follows with an average sales price of $342,160; this is the Sabino Canyon area.

Dropping to an average sales price of $263,894 is the Northwest area which encompasses Dove Mountain, Oro Valley, and Continental Ranch. From that price point, decreasing in value is the extreme south at $201,082--the Green Valley Sahuarita area. From there, the extreme southeast or the Vail area is at $191,743.

The west side average price is $182,821, followed by the central area which includes the University of Arizona area at $180,320. The east side of town includes areas around Davis Monthan Air Force Base and is next in line at an average sales price of $161,749.

The extreme northwest or west of the Tucson Mountains in the Arva Valley area has an average price of $136,050, followed by the extreme southwest where STar Valley master planned subdivision is located and Diamond Bell Ranch, at $125,449. The southwest encompasses Midvale Park at $107,664 and finally the south area of Tucson at $97,291.

Price points follow the value of land and in the north, few building lots are available, whereas in the southwest, building lots are readily available. However, one should remember 82% of all the land in Arizona is held by some type of governmental entity. Only 18% of the land mass is available for development.

Zip codes also tell a story of what areas are selling, compared to the numbers of properties active on the market.

Zip Code	# Listings	# Sold	% Sold	Zip Code	# Listings	# Sold	% Sold

85601	11	0	0.00%	85718	422	13	3.08%

85614/22	408	19	4.66%	85719	198	12	6.06%

85619	17	0	0.00%	85730	180	19	10.56%

85629	214	22	10.28%	85735	94	9	9.57%

85641	350	20	5.71%	85736	48	3	6.25%

85653	179	12	6.70%	85737	288	20	6.94%

85658	228	9	3.95%	85739	272	13	4.78%

85701	36	1	2.78%	85741	140	30	21.43%

85704	253	12	4.74%	85742	275	16	5.82%

85705	175	13	7.43%	85743	332	29	8.73%

85706/56	369	46	12.47%	85745	258	17	6.59%

85710	301	32	10.63%	85746	276	31	11.23%

85711	186	36	19.35%	85747	209	25	11.96%

85712	167	7	4.19%	85748	131	10	7.63%

85713	274	38	13.87%	85749	231	9	3.90%

85714	54	3	5.56%	85750	340	17	5.00%

85715	176	11	6.25%	85755	325	14	4.31%

85716	171	13	7.60%	85757	100	17	17.00%

Click the following link for a map of Tucson and Zip Codes.

http://www.tucsonaz.gov/planning/maps/city/wardzip.pdf

Resources:

http://www.tucsonrealtors.org/tar-v2/MLS_Stats_June.pdf

Once again, thank you Scott Weidamoyer of the Tucson Association of Realtors who compiles the statistics which I use on these blogs.

This was posted to my blog today at http://www.terrybishop.com

Six Months of Real Estate Statistics ... Part 2

Terry Bishop (RE/MAX Excalibur) — Tue, 14 Jul 2009 09:20:20 -0500

Don't believe what people say. Look at the empirical evidence. The stimulus package was signed into law by President Obama on February 13 of this year. Human nature attests when people do not know or understand what is transpiring , they often do nothing. This certainly has been true of the real estate market since the August presidential conventions. Once the stimulus bill passed, the Tucson market began to emerge from hibernation---not because of the stimulus bill, but because people understood government action.

The chart below shows the total unit sales for each month between January 2009 and June 2009. There is an 85% increase in total unit sales from the January numbers to the June numbers. Putting the numbers further into perspective, this represents more units sold in a month since July 2007 when 1182 homes closed escrow. Althought on one hand, this is good news, we will see tomorrow, prices have declined dramatically. The monthly inventory in June is 18.5% + less than January. Each month, inventory has been steadily decreasing. Decreasing inventory bodes well for a stable market.

Total new listings also decreased almost 20% since January. Pending contracts have risen by 52% from 941 in January to 1432 in June. These numbers further indicate the housing inventory is gradually decreasing.

This is all good news for the Tucson real estate market.


	January	February	March	April	May	June

Total Unit Sales	613	693	923	931	1024	1139


Total Units on Market	7694	7532	7415	6890	6506	6261


Total New Listings	2361	1799	1989	1703	1704	1892


Pending Contracts	941	1020	1208	1345	1302	1432

According to the Tucson Multiple Listing Service, the monthly comparision of the types of properties which sold, is as follows:


Type of Property	Jan-09	Feb-09	Mar-09	Apr-09	May-09	Jun-09

Single Family /New Construction	518	577	771	774	851	968

Town House/New Construction	44	53	74	80	80	84

Condo/ New Construction	16	34	30	30	45	54

Manufacture Single Family	28	24	39	29	33	28

Mobile Homes	7	5	9	7	15	5

Once again we see an increase in the sale of single family homes, townhomes, and condominiums. Manufactured homes and mobile homes are a much smaller part of the housing inventory. Sales remain steady at the January levels during the subsequent six months.

Tomorrow: Pricing

Resources:

Tucson Association of Realtors - June 2009 Residential Sales Statistics

http://www.tucsonrealtors.org/tar-v2/MLS_Stats_June.pdf

Statistics come from the June housing report produced by the Tucson Association of Realtors prepared by Scott Weidamoyer.

This was posted to my website blog this morning July 14. 2009, http://www.terrybishop.com

Six Months of Real Estate Statistics ... Part 1

Terry Bishop (RE/MAX Excalibur) — Tue, 14 Jul 2009 09:15:48 -0500

Our real estate market here in Tucson is beginning to show signs of life, although it is predicted there is a great deal of "shadow inventory". This is inventory held by the banks from foreclosures, and has not yet been put on the market. Short sales and foreclosures continue to be prevalent. People who do not have to sell their homes are staying put for another year or so.

Tucson is considered a distressed area and appraisals are often coming in low. Money is available for people with good credit scores - both FHA financing with 3.5% down, and conventional loans. For veterans, VA loans are available and anyone PCSing to Davis Monthan Air Force Base for a tour should definitely consider a VA loan to purchase a home.

The areas which seem to be hit the most are the master planned communities. These are the areas which grew rapidly and the areas where new home subdividers/builders had relationships with lenders such as Countrywide and offered zero down loans, option arms, 80/20 loans with the 20% being adjustable. These are the areas where "creative financing" reigned supreme.

People flocked when builders held lotteries for lots, potential homeowners camped out to get a lot. It was a feeding frenzy. The media lapped it up. These too were the areas where prices jumped thousands of dollars in a week during the heyday of the boom. Prices changed from morning to evening. I had a client with a price point of $140,000 and we went to a new home subdivision, and when we walked out, I said "let's look at a resale". And now these are the areas where homeowners are experiencing negative equity, where foreclosures are rampant, and where people are walking away. My client is just about even in his resale home.

Homeowners are not the only ones hurt in this market. Subdividers and home builders are also feeling the pain. People considering a new home should check with the Arizona Department of Real Estate to make sure the builder is not in financial distress.

If possible, any earnest money deposit should be put in a neutral escrow. If the house for some reason is not finished or does not close escrow, the home buyer can petition the escrow company through his or her real estate agent, to have the earnest money returned. Generally the earnest money in a new home subdivision, goes to the builder and is used as working capital. If the builder goes under, the buyer loses the earnest money. It is prudent to remember that with new home construction, real estate agents have difficulty altering the builder contracts which are written by a bevy of contract attorneys. Err on the side of caution...and if the builder balks, walk away! Don't forget, builders are hungry these days and if they feel the financial position is sound, a neutral escrow should be fine.

These are not times to try and save on a real estate commission, especially if you do not know how to navigate the desert. Sign a buyer's broker agreement and agree to pay your agent whatever percentage if it is not being paid by the seller. Find yourself a good real estate agent who knows what is transpiring and who is not afraid to holler in your behalf. You need representation, especially in this market. Remember a California dollar and a New York dollar are not the same as a Tucson dollar. They may be worth the same amount, but they don't buy the same goods and services!

Call me at 520-884-7201, leave a message if there is no answer. If you need a good agent in any other part of the country, I can help you with that too. You can also e mail me at terry@terrybishop.com

There are all kinds of bargains out there...I sold a two bedroom, two bath townhouse for $37,000! This is rare, but possible. I sold a townhouse in the Catalina Foothills for $275,000 which would have sold for $450,000 a few years ago...but patience was the price...it took nearly five months to close escrow. This is a buyer's market, but only if you know the pitfalls, the time frames, and the costs. Rely upon your Realtor.

Resources:

Arizona Department of Real Estate:

http://www.re.state.az.us/INFO_FOR/CONSUMERS.html

http://159.87.254.2/publicdatabase/SearchDevelopments.aspx

Tomorrow: Numbers

Rather than trying to give each month since January 2009 a blog page, I am going to attempt to try and combine all six months so that you, the reader, can discern some type of trend. This may take a few blogging days.

I posted this to my website blog: http://www.terrybishop.com/blog July 13, 2009.

Back to Blogging...

Terry Bishop (RE/MAX Excalibur) — Tue, 14 Jul 2009 09:12:33 -0500

I've had a bit of a hiatus from blogging, and if truth be told, I miss it. But I stopped blogging in January/February. I became paralyzed and found myself unable to do much of anything ... oh I took real estate classes, and was not literally paralyzed, but I was in a real blue funk, as if something had sucked the joie de vivre from my innards.

Needing to get out of this melancholy, I finally realized the root and the extent of my problem. Congress was trying to get the stimlus bill passed ... that bill which was suppose to be a panacea to the problems of the economy...but seems to be ladened with pork...GM and Chrysler were in the throes of financial crisis. Much had been made of the bonuses to AIG, and then the powers that be gave Fannie Mae and Freddie Mac bonuses far in excess of those to AIG...and everyplace there was news, there was a comparision to the Great Depression. Barney Frank and Chis Dodd paraded pompously in front of the cameras with their "just so" hair, seemingly oblivious to the true impact of what they had orchestrated years earlier. Connect the dots and cause and effect are not a part of their thought processes.

The sound bites were inane...the people writing about the Great Depression did not have much of a background in economics, they seemed to parrot what the members of the House and Senate desired. The kicker was the more than 1200 page stimulus bill which no members of Congress read...but upon which they voted. I didn't think that this was democracy as I believed...I didn't think it was responsible government.

It was pandering to the whims of lobbyism and I understand that lobbyism will go on ad infinitum...as soon as people get elected to the House or the Senate, they begin filling their war chest for the next run...and so we don't necessarily have thoughtful government...we have goverment based upon what interest group can pony up the most cash...or so it seems to me.

And so I did the only sane thing I could...I stopped reading the newspaper and I turned off the news. Alas, it saddens me but at every instance, I will tell people, look beyond the sound bites...the press releases, and think for yourself. Don't believe everything you read or hear...not that I did. But I suddenly realized what an impact the news has upon people...and how important little gestures are in getting to the truth...and so I am blogging again...about Tucson, about real estate...and maybe once and a while, a tangent like this!

I posted this on my website blog: http://www.terrybishop.com/blog July 12, 2009.

So You Want To Be An Investor???

Terry Bishop (RE/MAX Excalibur) — Wed, 07 Jan 2009 18:49:55 -0600

Another aspect to consider when investing in property is whether you, the investor, are skilled and can do repair work in a home. Today there are thousands of REO properties for sale, real estate owned properties - another term for bank owned properties. Many of these properties need work.

I have often thought a consortium of tradespeople would be an ideal investment group; a person who knows drywall, a plumber, an electrician, a tile person, and maybe a roofer. Between these people and someone to put up the initial amount of money, the group purchases property, fixes it up, and then puts it on the resale market. (This would have to be an LLC, limited liabiity corporation, with exit strategies defined for group members and legally enforceable. Consultation with an attorney is advisable.)

The key is to purchase the property at the correct price, and with today's pricing, making offers would be the name of the game. Doing the repairs in a timely manner is critical. The sooner repairs are done, the sooner the property can be put back on the market. If you buy correctly, the property can be priced in the mid range for the area so the property does not languish on the market. The sooner the profit can be made the quicker the group can move to the next property.

A 1031 Tax Deferred Exchange may not work in this instance because the property has not been held for any appreciable period of time. Short term capital gains tax would have to be calculated prior to determining profit. Again, here is where a good accountant who also understands the workings of 1031 tax deferred exchanges is necessary.

Think about a team and who you need on your team to make investing in property profitable and fun! Check professional people with good credentials, too many properties have been fixed up by rank amateurs. Your goal is to have your property stand out and sell immediately!

This was posted to my blog this morning at http://www.terrybishop.com/blog

So You Want To Be An Investor??? (The Power of 1031 Tax Deferred Exchanges)

Terry Bishop (RE/MAX Excalibur) — Tue, 06 Jan 2009 11:17:35 -0600

As a potential investor, you have thought about the type of property you want to purchase, "A", "B" or "C" property. You know the area in which you would like to concentrate your investment(s). Find a good Realtor who is familiar with 1031 tax deferred exchanges, who can suggest a good lender to provide financing for investment properties. Your aim is to create a relationship which will last for years.

Ask your Realtor to sit down with you in a meeting with a 1031 Tax Deferred Exchange Facilitator. There are companies which specialize in faciliating 1031's, and often Title Companies have departments that are knowledgable about 1031's.

Talk with your accountant about 1031 Tax Deferred Exchanges. The impetus for these exchanges comes from Section 1031 of the Tax Code. A reliable team is extremely important because any mis-step in timing can trigger big tax liabilities.

How does a 1031 work?

Let's say you purchase a multi family unit for $200,000. You put the requisite 20-25% down. That is $40,000 to $50,000. In a nutshell, you hold that property for five years, and each year it appreciates 5%. In five years, the property is now worth $256,671. You have a gain of more than $11,000 a year. Additionally, you have had the rent on the units as well as the tax deduction of interest and depreciation, plus the costs to maintain the property.

With a tax deferred exchange, you must take your proceeds and reinvest them in another property within the required period of time. You now have the initial $40,000 or $50,000 plus the gain of $56,671. Adding the initial down payment to the capital gain, you would have between $96,671 and $106,671 to reinvest depending upon your initial investment.

Using a 20% formula for down payment on the next property, you can now purchase a property between $386,684 and $483,355, or $426,684 to $533,355 for the 25% figure.

If you were not to defer the taxes, you would pay long term capital gains tax on the proceeds of $56,671. That is now 20%. Uncle Sam would take $11,334 right off the top. That $11,000 plus can purchase $44,000 to $55,000 more property! Ideally you want to defer taxes until you are dead and allow your heirs pay the tax, or at least defer the taxes until you are not working.

Create a long term plan. Within a hypothetical 20 years, you would do this four times. Each time, you will have more cash to purchase a property. At the end of 20 years, you will have property valued at million dollar levels.

Adhering to the timing is imperative. Putting a competent and professional team together and having all work synchronistically is paramount. Deferring the taxes on the sale of these properties is what maximizes the leverage so you can purchase more property. You must eventually pay the taxes, and if you want to pull some cash out, you can also do that, but be aware, taxes will be due!

Resources: Internal Revenue Service

http://www.irs.gov/newsroom/article/0,,id=179801,00.html

National Association Realtors:

http://www.realtor.org/library/library/fg408

1031 Faciliatator:

Brigitte Echave
Leverage Exchange Group LLC
7840 E Broadway Blvd Ste 209
Tucson AZ 85710
866-988-1031
520-722-2578
520-465-8690 520-979-8256

brigitte@leverageExchange.com

http://www.LeverageExchange.com

I posted this to my blog this morning at: http://www.terrybishop.com/blog

So You Want To Be An Investor??? (The Power of 1031 Tax Deferred Exchanges)

Terry Bishop (RE/MAX Excalibur) — Mon, 05 Jan 2009 12:54:47 -0600

I often look at people who are slim and trim ... people who can speak another language...or people who seem to know so much about a particular subject. Then I realize, it is all slow but steady. Most of these people developed some kind of plan: eating and working out in a healthy manner; learning new vocabulary and verb conjugations; or studying a particular subject.

The same is true for that person who owns a 120 unit apartment complex. It's a plan. Generally it does not happen overnight. It requires homework. But advanced planning may make it a bit easier.

In a previous post, I talked about the power of a 1031 Tax Deferred Exchange combined with a good plan of action purchasing investment properties. Real estate can generate cash flow for your retirement. And with today's low interest rates and the numbers of properties on the market, the time is ripe to make a long term plan and begin to implement it for your future.

People often say they want an investment property which generates good cash flow. That's all they know. They have no philosophy of investing. As a potential investor, your first decision should be: What types of properties do you want to purchase? This may be determined by your price point.

"A" properties are those properties which are usually the most expensive; townhouses, condos, single or multi family homes in the most expensive areas of town. They generally command the highest rental prices.

"B" properties are mid priced properties; townhouses, condos, single and multi family homes in middle class neighborhoods.

"C" properties are properties in lower income neighborhoods, but managed properly, can be a solid investment.

There will always be people who are eager to rent in each type of property. In a down market, people may move from an "A" property into a "B" property, and people in a "B" property, may move to a "C" property to save money. Think about the area in which you live and where "A" properties, "B" properties, and "C" properties are located. Check the areas and the price points of these properties.

Condos, townhouses, and single family homes all present different investment strategies. Often these properties have association fees. What the fees cover and the management company is important. Some management companies do a far better job than others and surveying the area for deferred maintenance is important.

As an investor, do you want to maintain the grounds? How much are the association fees? Can you buy a different type of property without association fees and maintain the property yourself or hire a groundskeeper for less than the association fee? How much time do you want to devote to managing property? These are important questions for the potential investor to answer honestly.

I am a firm believer in purchasing properties in the same general area. When you drive by one property, you can drive by all. Problems arise when landlords do not know what is transpiring with their property. Seeing aluminum foil on the windows may tell you something other than the tenant is a day sleeper. Mileage and drive times are costs of owning property and it is important to check your asset on a regular basis.

Tomorrow: The power of a 1031 Tax Deferred Exchange

Resource: Qualified 1031 Tax Deferred Exchange Facilitator

http://www.leverageexchange.com/pdf_files/1031%20exchange%20info.pdf

Business Brokerage, Commercial Agent:

http://www.sonoitaproperties.com/

I posted this article this monring on my blog, http://www.terrybishop.com/blog

The Tucson Winter Monsoon...

Terry Bishop (RE/MAX Excalibur) — Tue, 23 Dec 2008 10:28:48 -0600

The tiny beads of water dance on the orange plastic wrap which encloses the morning paper. Although it is nearly 9 am, the dark grey skies look like Connecticut (from where I migrated) on a day which bodes snow. A gentle rain, actually what I would call a sprinkle, dampens the earth.

This is a day to stay home and do paperwork, catch up on phone calls, and not drive around town for whatever reasons. These days are like snow days back in Connecticut when the glistening snow and ice weighs down the tree branches and sparkles like a million diamonds.

This lovely and welcome greyness is part of the Tucson winter monsoon season. The surrounding mountain ranges are covered by low lying clouds and I suspect there is snow on top of the Catalinas. When this storm clears out, we will have snow capped mountains for a short period of time contrasting against the Arizona sunshine.

The leaves from the Arizona Ash, a deciduous tree in the back yard, will shed even more green turned yellow leaves and fall into the pool, rippling with tiny raindrops. The pomegranates, nearly bare, have an abundance of fruit filled with holes, thanks to birds seeking the sweet juices. And the citrus trees, always green, are slurping up the rain as the branches of the oranges and grapefruits sway somewhat in the wind.

We need this slow, gentle rain. The water has time to seep into the ground and is not violent or rapacious like the heavy rains which pelt the earth and run off without percolating and benefiting the vegetation.

We Tucsonans love this weather. It is infrequent and needed. This is "dancing in the street" weather. Out of towners, who are accustomed to rain are puzzled by our excitement and gratitude for these beads of moisture. Certainly the winter monsoons are not like the summer monsoons which often present dazzling lightning shows with the rays of rain.

I hear the trickle of the raindrops flowing down the gutters...oh what a beautiful day...the white grey of the sky obscures even the houses in the distance and my mind is playing the refrain, "let it rain, let it rain, let it rain!".

Resources:

Weather and Monsoons

http://ag.arizona.edu/maricopa/garden/html/weather/monsoon.htm

http://geography.asu.edu/aztc/monsoon.html

I posted this this morning on my blog at http://www.terrybishop.com

Thinking About A Tucson Second Home?

Terry Bishop (RE/MAX Excalibur) — Mon, 22 Dec 2008 09:22:57 -0600

Celebrations of the winter solstice marked the full rotation of the earth around the sun. The shortest day of the year is behind us. Daylight increases with every passing day. Holiday cheer is abundant and in less than ten days, we will be welcoming 2009 with First Night celebrations.

Snowbirds, or to be politically correct, winter visitors will soon arrive. While much of the remainder of the country has snow, sleet, freezing weather, and bone chilling cold ahead of them, those people who make a pilgrimage to Tucson will be in for high 60's and 70's weather and increasing daylight - especially since Arizona does not turn it's clock back!

For anyone thinking about purchasing a winter home, this is the time! Although many people pay cash, it may be worthwhile to think about taking a mortgage, especially since rates are 4.625% for a person with good credit scores who can put 20% down. The 1% loan origination fee charged on this $100,000 loan has a break even point of about four years. Principal and interest at that rate on $100,000 would be $514.14.

Wrapping the loan origination fee of 1% or $1,000 into the loan at a higher rate of 5% makes the payment $536.82. The difference is $22.68 a month. Dividing the $1,000 by $22.68 gives a break even point of 44.209 months, or nearly four years.

Although it has been the dream of everyone to be mortgage free, the exercise of examining one's own mortality may be worthwhile. Looking at a 30 year mortgage, assuming I am 68 years old, what is the probability I will live to be 98? When really do I think I will die? Let's see, my Mom died when she was x years old, and my Dad died when he was y years old...what does that say about my own gene pool? Hmmmm....I will probably die about 86 years old.

So if I have a 30 year mortgage, that means there will be an additional 12 years to pay off when I die. History has told us that inflation is inevitable... and let's just calculate a mere 3% inflationary factor each year...interesting...that $100,000 in 2009 will become $245,684.22 in 2039! It may be more prudent for me to let my estate worry about that remaining 12 years...a consultation with a financial advisor or CPA, might be in order here.

History also tells us that regardless of the political affiliation of the administration, whenever we have a budget deficit, the government pays it off by printing money...i.e. inflation. So perhaps 3% is a low rate. If we were to experience 5% - a rate which has been consistent for Tucson between 1993 and 2004, the value then jumps to $446,774.49!

And then we add the income tax deduction which is calculated on the marginal tax rate...and the fact we keep our $100,000 in tact for other safe but more liquid investments...

Financing is a personal decision. But with the price of properties in Tucson now, including Active Adult Communities, people thinking about a second home should consider the advantages of acting now.

Resources:

Tucson Weather and Precipitation:

http://www.weather.com/weather/wxclimatology/monthly/graph/USAZ0247?from=tenDay_bottomnav_undeclared

Lenders:

Nova Home Loans:

http://www.lancedickson.com

Sundt Mortgage:

http://www.sundtmortgage.com

Realtor:

http://www.terrybishop.com

e-mail: terry@terrybishop.com

Housing Statistics 1993-2007:

See previous blog

I posted this to my blog this morning.

Weekend Wanderings...The Arizona-Sonora Desert Museum

Terry Bishop (RE/MAX Excalibur) — Fri, 19 Dec 2008 09:24:09 -0600

Tucson lies within the Sonoran Desert which extends south to Mexico and westerly to southern California and the Baja Penisula. Often called a "green desert", people are surprised that the Sonoran does not look like miles and miles of sand...the Gobi Desert or the Sahara. A gem within Tucson is the Arizona-Sonora Desert Museum.

The Museum is a delightful place to visit, but plan on at least a morning or afternoon...if you are a trooper, plan for most of the day. And wear comfy shoes. I backpack water bottles and quartered oranges and sometimes plan for a late lunch at the restaurant.

The Desert Museum is off of Kinney Road on the west side of town. Crossing Gates Pass, stands of stately beautiful saguaro cactus salute you and when you cross the crest, the sky appears to be more brilliantly blue. Old time movie goers will recognize the scenery, the backdrop to many a John Wayne western movie.

Wandering the paths of the desert museum is a different world. Climbing through the caves with the replicas of bats is an adventure for young and old; the huge room with all of the exquisite rock formations...precious and semi-precious gems found in the Sonoran desert, some irridescent and deep gorgeous colors, reminds me I'm in a mining area...famous for copper, silver, and gold.

Craning necks, people cluster to see the various types of rattlesnakes which inhabit the area as well as a multitude of tiny and not so tiny lizards, and of course the infamous gila monster with which you don't want to tangle! Insects and critters occupy one entire building, including the scorpions which have attracted an undeservedly nasty reputation.

Meandering down the paths are the larger animals, delights to children; bears, cougars, mountain liions, and the prarie dogs whose antics one can watch and can't help but smile. The Sonoran Desert is a birders' paradise, and hundreds wing their way in the aviaries. Photographers have a field day focusing close up shots ...including the hummingbird aviary which has more than 17 species. The javalina and the coyotes are a big draw, just like the roadrunner, local wanderers within Tucson city limits.

You can walk from the desert floor with the spiny types of cactus, to the top of the Catalinas at an elevation of 8,000 feet plus, to what looks like the pines of Maine, in the exhibit of the flora of the Sonoran Desert. Some animals migrate up and down the mountains rather than flying south.

A don't miss treat, the Arizona- Sonoran Desert Museum is an outstanding collection of all that this Desert presents. Stopping at the Tucson Convention and Visitors Bureau downtown to purchase a Tucson Passport for $15. will get you into the Desert Museum on a two for one basis as well as many other attractions.

Put the Desert Museum on your list of things to do and see and give yourself a treat!

Resources:

Sonoran Desert Museum:

http: www.desertmuseum.org/

Tucson Convention and Visitor's Bureau:

http://www.visittucson.org

The Sonoran Desert:

http://www.desertusa.com/du_sonoran.html

en.wikipedia.org/wiki/Sonoran_Desert