[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.
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.
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.
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!"
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.
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
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.
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!
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.
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.
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.
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.
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.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
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