From the Associated Press:

SHORT SALE GUIDELINES REVISED
WASHINGTON (Associated Press) – Guidelines for short sales to help homeowners who need to sell their houses but cannot secure contracts at a high enough price to pay off their mortgages have been revised by the Treasury Department.
The plan was created to aid homeowners whose income or debt is too low to qualify them for a loan modification under the Making Home Affordable program. The plan establishes timetables, a standard process and documents, and cash incentives for participation.
The new guidelines require the:
     >property be the homeowner’s primary residence;
     >homeowner be delinquent on the mortgage or likely to default;
     >loan was made before Jan.1 this year and is less than $729,750; and
     >borrowers’ total monthly mortgage payment exceeds 31 percent of their before-tax income.
The guidelines are expected to reduce paperwork by requiring mortgage companies to use the financial and hardship documents submitted by borrowers seeking a loan modification. To speed up the approval process, mortgage companies will have to approve short-sale terms, including the minimum listing price, before the house is put on the market.

Mortgage companies will be required to offer the program as of April 5, 2010.

Wonder what happens if they don’t approve the short sale within 10 days?  Would be nice if it would be come automatically accepted… just a dream. 

Kathy Howe aka @SedonaKathy

Twitter Bird Follow Me

$75 Annual Pass (good for as many classes over 1 year from date of issue) or $25/ea.   

DECEMBER

Essentials – the Beginning  3 hrs Commish Stands  Wednesday 12-2  10-1A review and application of the real estate statutes and rules for everyone.  Starting your career or in the middle, a review of IRS Independent Contractor definition, broker-supervision, assistants, agency, disclosure, cooperation and compensation, advertising, files…

Next Exit – the Future 3 hrs General  Wednesday 12-2 1:30-4:30

From Stefan Swanepoel’s Trends Report 2009, see what the future brings.  What new real estate business models will we see?  How will the consumer find us, lenders, title insurance costs, and how will education, learning, and information influence us in the future?

Essentials – the Middle  3 hrs Contract  Friday 12-4 10-1

In this course we go hands on from listing docs to purchase docs and addendums.  Computers in the classroom or bring your own and guest-into our network.

Arizona’s Law of Agency  3 hrs Agency  Friday 12-4 1:30-4:30

Arizona is the only state in the US that has an amendment to their state constitution that allows real estate licensees to “draft” (not only fill in the blanks) legal documents (without charge) incident to the transaction.  We explain legal docs but don’t give legal advice.  We act in the best interest of our client..  When are we an agent? 

Price, List, Sell  3 hrs General  Monday 12-7 10-1

Price it right, beat out the competition, market the property, and negotiate a purchase!  There are new rules for the 21^st century.  How effective is print marketing?  Which websites work best?  Does Social Media offer opportunities?  Do sellers want to be more involved?  Do buyers want our information and advice?  

Roots of Discrimination  3 hrs Fair Housing  Wednesday 12-9 10-1

Throughout the years man has put one race, one culture, one religion above another.  Know when it began (recorded times)?  What makes us look at each other differently?  When do we break the laws by favoring one person over another?

Business Planning…nuts & bolts  3 hrs General Wednesday 12-9  1:30-4:30

Your vision is the “What” and the mission is the “How”.  Explore other vision/mission statements.  Write a vision/mission for your business then work on goals and strategies to make it happen.  ADRE outlines business must-dos for brokers.  Do you have an Independent Contractor Agmt with your broker?  Do you have a copy of the Office Policies? 

Short Sales, Anti-Deficiency, Bankruptcy  3 hrs Legal Issues  Monday 12-14  1:30-4:30

If your seller has a property that will receive an offer below the loan balance, do you know how to counsel that seller?  Does every seller who is upside down have the possibility of a short sale?  Who really decides at what the property will sell?  Is there any negotiation?  What about the 11 page addendum of a foreclosure?  Should you recommend an extended owner’s title policy on Short Sales and Foreclosures?

Residential v. Land Contract Workshop   3 hrs Contract   Tuesday 12-15  10-1
Workshop on purchase contracts and addenda.  When do you use certain addends, working within timeframes, beginning to end…

Negotiation, Mediation, Arbitration 3 hrs Legal Issues  Tuesday  12-15  1:30-4:30

This is a course that focuses on negotiation tactics first, then mediation and the process, finally arbitration and the courts.  Do you know your BATNA?  Do you know that of your client?  REALTORS are often some of the best mediators and facilitators.  Come hone your skills.

Sick Building Syndrome – Mold  3 hrs Disclosure  Wednesday  12-16 1:30-4:30

Updated course that many of you have already attended.  Houses and buildings that make you ill…Radon is now on the World Health Org. and EPA’s revisit list.  Found to be more of a carcinogen than thought.  New benchmarks.  Mold:  perception or reality? 

January

Short Sales, Anti-Deficiency, Bankruptcy  3 hrs Legal Issues  Tuesday 1-12  1:30-4:30

If your seller has a property that will receive an offer below the loan balance, do you know how to counsel that seller?  Does every seller who is upside down have the possibility of a short sale?  Who really decides at what the property will sell?  Is there any negotiation?  What about the 11 page addendum of a foreclosure?  Should you recommend an extended owner’s title policy on Short Sales and Foreclosures?

Business Planning…nuts & bolts  3 hrs Commissioner’s Standards Wednesday 1-13  1:30-4:30

Your vision is the “What” and the mission is the “How”.  Explore other vision/mission statements.  Write a vision/mission for your business then work on goals and strategies to make it happen.  ADRE outlines business must-dos for brokers.  Do you have an Independent Contractor Agmt with your broker?  Do you have a copy of the Office Policies? 

Roots of Discrimination  3 hrs Fair Housing  Thursday 1-14  1:30-4:30

Throughout the years man has put one race, one culture, one religion above another.  Know when it began (recorded times)?  What makes us look at each other differently?  When do we break the laws by favoring one person over another?

Arizona’s Law of Agency  3 hrs Agency  Monday 1-18  10-1

Arizona is the only state in the US that has an amendment to their state constitution that allows real estate licensees to “draft” (not only fill in the blanks) legal documents (without charge) incident to the transaction.  We explain legal docs but don’t give legal advice.  We act in the best interest of our client..  When are we an agent?

Next Exit…the Future  3 hrs General  Monday 1-18  1:30-4:30

From Stefan Swanepoel’s Trends Report 2009, see what the future brings.  What new real estate business models will we see?  How will the consumer find us, lenders, title insurance costs, and how will education, learning, and information influence us in the future?

Essentials – the Middle  3 hrs Contract  Wednesday  1-20 10-1

In this course we go hands on from listing docs to purchase docs and addendums.  Computers in the classroom or bring your own and guest-into our network.

Sick Building Syndrome – Mold  3 hrs Disclosure  Wednesday 1-20  1:30-4:30

Updated course that many of you have already attended.  Houses and buildings that make you ill…Radon is now on the World Health Org. and EPA’s revisit list.  Found to be more of a carcinogen than thought.  New benchmarks.  Mold:  perception or reality? 

Residential v. Land Contract Workshop   3 hrs Contract   Monday  1-25  10-1
Workshop on purchase contracts and addenda.  When do you use certain addends, working within timeframes, beginning to end…

Disclosure & Case Law…Review of Lombardo & Aranki  3 hrs Disclosure  Monday  1-25  1:30-4:30
Case law and how it affects what we must disclose to and discuss with our clients.  Why it is necessary to treat all parties with honestly…

how2educate LLC

1120 W SR89A, Suite A-1 (all classes held here)

Sedona, AZ 86336

kathy@kathyhowe.com / 928-274-4088

how2educate LLC offers a $75 annual pass – good for as many classes as wanted over 1 year from date of issue ($10 fee if visiting instructor). 

…0r $25/class. 

Many real estate agents are trying to get the rest of their renewal hours taken before the holidays and this year how2educate intends to make sure there are enough classes for everyone.  Here’s the schedule: 

NOVEMBER

 Negotiation, Mediation, Arbitration  3 hrs Legal Issues  Tuesday 11-17  1:30-4:30 

This is a course that focuses on negotiation tactics first, then mediation and the process, finally arbitration and the courts.  Do you know your BATNA?  Do you know that of your client?  REALTORS are often some of the best mediators and facilitators.  Come hone your skills.

Essentials – the Middle  3 hrs Contract  Wednesday 11-18 10-1

In this course we go hands on from listing docs to purchase docs and addendums.  Computers in the classroom or bring your own and guest-into our network. 

Arizona’s Law of Agency  3 hrs Agency  Wednesday 11-18 1:30-4:30

Arizona is the only state in the US that has an amendment to their state constitution that allows real estate licensees to “draft” (not only fill in the blanks) legal documents (without charge) incident to the transaction.  We explain legal docs but don’t give legal advice.  We act in the best interest of our client..  When are we an agent? 

Fair Housing – Gender  3 hrs Fair Housing  Thursday 11-19  1:30-4:30

Over the centuries women have been free to make choices, then “poof” choices are taken from them.  A trip down through the centuries looking at how women have endured discrimination and how the women’s movement paralleled the Fair Housing movement.  Without the sufferage movement, would Civil Rights be what it is today? 

Sick Building Syndrome …Moldy facts  3 hrs Disclosure  Friday 11-20 1:30-4:30

Updated course that many of you have already attended.  Houses and buildings that make you ill…Radon is now on the World Health Org. and EPA’s revisit list.  Found to be more of a carcinogen than thought.  New benchmarks.  Mold:  perception or reality?  

Business Planning…nuts & bolts  3 hrs Commish Stands  Monday 11-23  10-1

Your vision is the “What” and the mission is the “How”.  Explore other vision/mission statements.  Write a vision/mission for your business then work on goals and strategies to make it happen.  ADRE outlines business must-dos for brokers.  Do you have an Independent Contractor Agmt with your broker?  Do you have a copy of the Office Policies?  

Next Exit…the Future  3 hrs General  Monday 11-23  1:30-4:30

From Stefan Swanepoel’s Trends Report 2009, see what the future brings.  What new real estate business models will we see?  How will the consumer find us, lenders, title insurance costs, and how will education, learning, and information influence us in the future?

Short Sales, Anti-Deficiency, Bankruptcy  3 hrs Legal Issues  Tuesday 11-24 10-1

If your seller has a property that will receive an offer below the loan balance, do you know how to counsel that seller?  Does every seller who is upside down have the possibility of a short sale?  Who really decides at what the property will sell?  Is there any negotiation?  What about the 11 page addendum of a foreclosure?  Should you recommend an extended owner’s title policy on Short Sales and Foreclosures? 

Essentials – the Beginning  3 hrs Commish Stands  Tuesday 11-24 1:30-4:30

A review and application of the real estate statutes and rules for everyone.  Starting your career or in the middle, a review of IRS Independent Contractor definition, broker-supervision, assistants, agency, disclosure, cooperation and compensation, advertising, files…

Roots of Discrimination  3 hrs Fair Housing  Monday 11-30 10-1

Throughout the years man has put one race, one culture, one religion above another.  Know when it began (recorded times)?  What makes us look at each other differently?  When do we break the laws by favoring one person over another?

Negotiation, Mediation, Arbitration 3 hrs Legal Issues  Monday 11-30  1:30-4:30

This is a course that focuses on negotiation tactics first, then mediation and the process, finally arbitration and the courts.  Do you know your BATNA?  Do you know that of your client?  REALTORS are often some of the best mediators and facilitators.  Come hone your skills.

DECEMBER

 Essentials – the Beginning  3 hrs Commish Stands  Wednesday 12-2  10-1

A review and application of the real estate statutes and rules for everyone.  Starting your career or in the middle, a review of IRS Independent Contractor definition, broker-supervision, assistants, agency, disclosure, cooperation and compensation, advertising, files…

Next Exit – the Future 3 hrs General  Wednesday 12-2 1:30-4:30

From Stefan Swanepoel’s Trends Report 2009, see what the future brings.  What new real estate business models will we see?  How will the consumer find us, lenders, title insurance costs, and how will education, learning, and information influence us in the future?

Essentials – the Middle  3 hrs Contract  Friday 12-4 10-1

In this course we go hands on from listing docs to purchase docs and addendums.  Computers in the classroom or bring your own and guest-into our network. 

Arizona’s Law of Agency  3 hrs Agency  Friday 12-4 1:30-4:30

Arizona is the only state in the US that has an amendment to their state constitution that allows real estate licensees to “draft” (not only fill in the blanks) legal documents (without charge) incident to the transaction.  We explain legal docs but don’t give legal advice.  We act in the best interest of our client..  When are we an agent?

Price, List, Sell  3 hrs General  Monday 12-7 10-1

Price it right, beat out the competition, market the property, and negotiate a purchase!  There are new rules for the 21^st century.  How effective is print marketing?  Which websites work best?  Does Social Media offer opportunities?  Do sellers want to be more involved?  Do buyers want our information and advice?

 Essentials – the Home Stretch (PENDING) 3 hrs Disclosure Monday 12-7 1:30-4:30

NEW Class.  Course explores situational disclosure.  Discussions about issues such as stigmatized properties, mold, radon, water, dual agency… Case law of Lombardo and Aranki

 Negotiation, Mediation, Arbitration  3 hrs legal issues  Tuesday 12-8 10-1

This is a course that focuses on negotiation tactics first, then mediation and the process, finally arbitration and the courts.  Do you know your BATNA?  Do you know that of your client?  REALTORS are often some of the best mediators and facilitators.  Come hone your skills.

 Sick Building Syndrome – Mold  3 hrs Disclosure  Tuesday 12-8 1:30-4:30

Updated course that many of you have already attended.  Houses and buildings that make you ill…Radon is now on the World Health Org. and EPA’s revisit list.  Found to be more of a carcinogen than thought.  New benchmarks.  Mold:  perception or reality?  

Roots of Discrimination  3 hrs Fair Housing  Wednesday 12-9 10-1

Throughout the years man has put one race, one culture, one religion above another.  Know when it began (recorded times)?  What makes us look at each other differently?  When do we break the laws by favoring one person over another?

 Business Planning…nuts & bolts  3 hrs General Wednesday 12-9  1:30-4:30

Your vision is the “What” and the mission is the “How”.  Explore other vision/mission statements.  Write a vision/mission for your business then work on goals and strategies to make it happen.  ADRE outlines business must-dos for brokers.  Do you have an Independent Contractor Agmt with your broker?  Do you have a copy of the Office Policies? 

Social Media and Regulators (PENDING) 3 hrs Commish Stands  Monday 12-14 10-1

NEW class about Social Media, Web 1.0, 2.0, 3.0+.  How do real estate regulations deal with advertising on the Internet.  Learn the history of Social Media and get information provided by the Swanepoel 2010 Social Media Report.  Is this the future of our marketing and advertising?

 Short Sales, Anti-Deficiency, Bankruptcy  3 hrs Legal Issues  Monday 12-14  1:30-4:30

If your seller has a property that will receive an offer below the loan balance, do you know how to counsel that seller?  Does every seller who is upside down have the possibility of a short sale?  Who really decides at what the property will sell?  Is there any negotiation?  What about the 11 page addendum of a foreclosure?  Should you recommend an extended owner’s title policy on Short Sales and Foreclosures?

 Sign up by sending an email to:  kathy@kathyhowe.com

Kathy Howe

how2educate LLC

www.how2educate.com

kathy@kathyhowe.com

928-274-4088

Learning Center:  1120 W SR89A  Suite A-1

                          La Tierra Plaza

                          North Airport Rd

                          Sedona, AZ

What do these 3 ladies have in common?

They are 3 Arizona Department of Real Estate approved instructors who rank among the most popular instructors in AZ.

Joeann Fossland is one of real estate’s most notable national educators, motivators, and career counselors.

Recognize the hat?

Joeann is also going to give a free ePro workshop for those of you who are interested in tweeking your technology skills.

Next we have Paula Monthofer who many of you know as the Twitter Maven of Flagstaff, AZ.  Did you know that Paula has become one of the newest, most interesting instructor in Northern Arizona?  We are pleased that she is mentored by Joeann and will bring excellent CE information to AZ real estate agents.

Next we present Bridget Reynolds who teaches throughout the Valley of the Sun and runs her own brokerage as well.

Bridget is an educator who will entertain you, enlighten you and give you tips that will help you in your real estate business… the how2s of doing business and avoiding the pot holes.

We hope you will go to how2educate LLC and sign up for one of our classes in October.  You won’t regret the time you spend with one of these exciting educators.  Better yet, why not sign up for all 3 of them?!

Kathy Howe

I cannot remember when I actually met Judy Lowe…some time in the late ’80s or early ’90s.  I admired her then.

…and I admire her now.

Yesterday (8-27-09), though sleep-deprived and a desk that still looks like Mt. Kilimanjaro, I drove down to the ADRE’s Education meeting.  The invites had gone out to real estate schools and instructors throughout the state.  As a school, and an advocate of education, I felt I could not miss this opportunity to hear more about the ADRE’s future plans.

For those of you who have not realized that there is a new and different “sheriff in town”, you need to pay attention.  Here are some changes that will take place, “in time” and with the help of industry partners:

• return to a 2 year license renewal structure
• prelicensure and then a provisional license (both salesperson and brokers)
• test questions will be changed and unique to salespersons and brokers
• assessments for schools, courses, and instructors (moderate-reasonable)
• easy “education” audits (easier with transaction management platforms)
• and more…

Understand these will need to be packaged into an Omnibus bill from the ADRE and submitted to the Legislature and passed into law.  The interesting point of all of this is the different direction of this Real Estate Commissioner versus the previous Commissioner, Sam Wercinski.  Different focus.  Different energy and resources.  Different priorities.

You need to pay attention.  The new sheriff believes in doing things accurately, specifically, and is not afraid to punish.  The way to stay out of trouble with this new regime is to educate yourself on all the minute ways to get into trouble, and then avoid the pot holes.

Education will be the keynote in anything this Commissioner says.  She lives and breathes professionalism through education.  And if that doesn’t work, she has a gun.

Kathy Howe

It’s official!  Judy Lowe is Arizona’s newest real estate commissioner.  With the new commissioner comes a new title.  According to the press release on the Department’s website her position is now the Director of the Arizona Department of Real Estate.  So it appears the correct announcement would be Judy Lowe is Arizona’s newest Director of Real Estate!

Whatever Governor Brewer calls the position, the industry is excited that one of their own is at the helm.  Director Lowe is the past president/owner of Realty Executives Southern Arizona and the past owner of Coldwell Banker Success Realty Arizona.  The Department’s press release mentions she brings experience from commercial, residential, land, new home sales and relocation, and corporate services.  All areas that I’m sure will need her attention as the Director of Real Estate.

Congratulations Director Lowe we at John Hall & Associates wish you the best of luck on this new adventure!

As I’m sure you know, all new and current Arizona real estate licensees must provide the Arizona Department of Real Estate with “Proof of eligibility to work in the United States”.  For the last two weeks the Department has asked all licensees to email the Proof to them.  That changes today!

They have added a new portal to their intranet site that enables you to upload Proof directly to them.  They no longer want emails.  This new portal displays the status of approval (for you and your broker) and a copy of the file you upload.  The new tool leaves the guess work out of whether they got your email or not.  It also allows the Department to easily match your Proof with your license number.

The hard part still remains – how to get a digital/scanned copy of your license, passport, etc.  Well, here are some other options if you don’t have a scanner.

1.  Take a picture of Proof with your digital camera and upload the image to your computer.

2.  If your cell phone has a good enough camera, use it to take a picture of Proof.  If the picture is legible, send a text/picture message from your phone to your email address.  You should receive the picture as an attachment.

3.  Use a copy machine and the post office.

One last thing I want to mention is that this is a one time event.  Get it out of the way now and you won’t have to ever think about it again.

[Source: Andrew Johnson, Arizona Republic] — For years, “hard-money” real-estate lenders have operated in relative obscurity, raising billions of dollars from investors to fund thousands of developments across Arizona.  The inner workings of such financiers, who charge high fees and interest on building projects that banks deem too risky, traditionally have been familiar only to developers and the lenders themselves.  The integral role they play in the Valley’s real-estate market has garnered increased attention as banks have reined in lending activity.

The high-profile case of Mortgages Ltd. also has brought more attention to the industry.  It was thrust into the spotlight with the June 2 suicide of its chairman and chief executive officer, Scott Coles.  Coles’ death occurred amid lawsuits brought by borrowers and just three weeks before a developer forced the company into bankruptcy.  Phoenix-based Mortgages Ltd. was considered Arizona’s largest, oldest and best-known private lender.  But the company is only one of dozens of hard-money lenders in Arizona that specialize in short-term, high-interest loans for real-estate projects.  The firms’ operators say they have seized a bigger piece of the construction-lending market because traditional banks and institutional players are on the sidelines.  Many are still actively soliciting funds from investors, who are vital to their ability to make loans.

But Mortgages Ltd.’s problems have caused some industry experts to question whether hard-money lenders are next in line to be hamstrung by the bad real-estate market.  Their lending and fundraising practices — largely unregulated — also have come under scrutiny in lawsuits by investors and developers.  ”Our industry for many years was the Wild West,” said Jayne Hartley, managing director of Phoenix-based private lender Coppercrest Funding LLC.  [Note: To read the full article, click here.]

Straight off the Department’s website…

The Department of Real Estate is pleased to announce that as of July 7, 2008, it has revised the fee schedule for licensing and services provided to the Industry…  [The Department] has eliminated fees for real estate licensees being hired or transferred…  The Department also lowered the online license renewal fee for the second year in a row…  Individuals applying for a real estate license will now pay more for the initial two-year license…  See our new fee schedule.

Catherine Reagor and the Arizona Republic picked up on this as well and she wrote about it on her blog.  (h/t @drubloomfield)

I was excited to receive in today’s mail Issue #2 of the “periodic” bulletin from ADRE, and since I have been asked to blog with you, what a good topic… So I went to ADRE’s website to provide you the link here and lo and behold there is even a more recent bulletin, Issue #3, posted on their site. Remember it is your responsibility as a licensee to go online and read their periodic updates.

It is also essential that you log on to ADRE and notify them whenever you move or need to change other personal information. If you haven’t already logged on to view your license information, take a moment to do so. Provide your email address to ADRE and you will be notified just prior to your license expiring. You can also sign up for email updates that are very informative.

Remember the bulletin is not only where disciplinary actions are published but lots of other good educationary materials as well.

Diane Scherer, CEO
Phoenix Association of REALTORS®

Note: Numbers are from FY2007 and FY2008 (through March); Source: City of Phoenix Neighborhood Services Department.

Here are three agencies that can help distressed homeowners who may be facing foreclosure or homeowners already in foreclosure:

• HOPE Hotline has a single mission: To help homeowners avoid foreclosure.  Call toll-free 888-995-4673; website.
• Maricopa County Community Legal Services: 305 S. 2nd Ave., Phoenix, AZ 85036-1538; phone: 602-258-3434; toll-free: 1-800-852-9075; Rescue Foreclosure: 602-682-3410.
• Association of Community Organizations for Reform Now (ACORN) Housing Corp.: 1018 W. Roosevelt St., Phoenix, AZ 85007; phone: 602-253-1111; website.

Ways to avoid being a victim of a foreclosure scam (Source: Arizona Department of Financial Institutions):

• Contact your lender immediately to implement a “work out” program or a plan, if you fall behind on your mortgage payment.
• If you cannot bring your mortgage payments current, think about selling your home and keeping the equity you have built up.
• Enlist the services of a reputable licensed real estate professional.  Check with the Arizona Department of Real Estate for licensed real estate professionals.
• DO NOT sign documents with blank spaces or blank documents.
• DO NOT sign any documents that you do not understand.
• DO NOT ignore lender “warning letters.”

If you think you are a victim of a foreclosure rescue scam, fill out and sign a formal written complaint form with the Arizona Department of Financial Institutions.  You must provide a detailed timeline of the events and the entities and persons involved along with all corresponding documentation.