Urban Life

Radiate Phx Meets One Lexington in Downtown Phoenix

The gang at Radiate Phx gathered on the 12th floor of One Lexington to enjoy the views, conversation, wine and introduction to One Lexington… a project I believe to be the most exciting, desirable and sustainable condo/lot development in downtown/midtown Phoenix. Finally, I get to be ecstatic about a project.

Let’s talk a bit about the meeting and then I’ll talk about One Lexington itself. The evening began with the usual talk time with friends new and old. Catrina Knoebl, Radiate’s helmsperson, kicked things off and welcomed Carol Johnson from the City of Phoenix who talked about how the Urban Form project is moving forward. Next up was Rob McDonald, the President of McDonald Development… the new owners of One Lexington.

I really like Rob McDonald. Though he calls Vancouver Canada home, his family's roots are from Atlanta, GA. He is a warm engaging man who is both excited and commited to offer Phoenix the most viable condo project in years. He spoke about the reason for choosing to buy the building, the partners gathered to make it work and the project itself.

One Lexington offers 145 units in 1,2 and 3 bedroom floor plans plus penthouse units and 15,000 square feet of commercial on the first floor.  The floor plans are well thought and feel quite gracious and welcoming.

McDonald talked about the excellent quality of the buildings and his commitment to use American made products in the build out as well as local contractors and vendors. The unit we were in had winsome finishes including wood floors, tasty tile backsplashes, clean-lined cabinets and other niceties.

Based on the 20 or so purchase reservations already submitted, I am not the only one who feels this is an incredible opportunity.

The Radiate Phx evening ended with more conversation and tours of the various models.  As a realtor, I found this venue very exciting, a welcome addition to the community and a great place to Radiate Phx. Special thanks to Catrina and her husband Chris for putting this night together.

Gene Urban
The Urban Team
602-234-5777

PS… If you would like to see One Lexington, the Urban Team would be over the top delighted to meet you there and represent you if you want to purchase a place. Remeber, if you don't bring your own agent to a new-build project you will be represented by the builder's agent... not the best way to keep well protected.

Urban Cookies Offers Special Easter Treats

The gang at Urban Cookies has baked up some special treats for the Easter Holiday we thought you'd like to know about.

The Easter Coconut Cupcakes are only available this week so you'll have to hurry. I just talked to Shaun and she tells me the cupcakes feature a coconut butter cream frosting with a cute pink tail.

On a separate note, I can't believe Shaun and Brady's baby, Oliver, is already a year old. Time just keeps a moving.

You can order your treats at www.urbancookies.com or give them a call at 602-451-4335 and reserve your cupcakes for Saturday pickup. Yum.

Hope you have a great Easter weekend with family and fiends. Amy and I will be traveling to Bend, OR to visit our god-son Max and many friends who move there this past year.

Gene Urban
The Urban Team at Realty Executives
602-234-5777

The Failure of HAMP and Loan Modifications

There was a great article in Inman News discussing problems with the government's HAMP program. Steve Bergsman authored the piece and it illustrates the weak link causing most of the problems…failure of the loan servicing companies.

We’ve talked about the the problems with short sales and loan mods in previous posts, Steve Bergsman’s article gives even more insight.

HAMP's failure is quite evident. As of January, more than 900,000 homeowners were in "temporary" trial loan modification plans, but mortgage servicers had managed to convert only about 63,000, or 7 percent, of the temporary modifications to permanent modifications, reported the Treasury Department.

Here is a link to the Inman News piece for you to learn a bit more from a top industry expert’s perspective.

Enjoy…

Gene Urban
The Urban Team at Realty Executives
602-234-5777

Steele Indian School Park Clean Up Event Information

One of downtown Phoenix’s great parks is the Steele Indian School Park located at Central and Indian School Rd. How many of us have taken our dogs to the 1.8 acre dog park or marveled at the Circle of Life? It’s a special place we are lucky to have.

We now have a second opportunity to give back to the park by participating in the Steele Indian School Park community cleanup event being sponsored by the Phoenix Community Alliance, Hands on Greater Phoenix and the James Cox Foundation. 

WHEN:  Saturday, March 27th
TIME:    8:00 – 11:30 AM
WHERE: Steele Indian School Park.
LOCATION DETAILS: Enter the park via the main entrance at 3rd St. and Indian School Rd. There will be marker to guide you to the parking area. Look for the Ramada to the east of Memorial Hall.  Click here for a park map.

Please RSVP by March 25 at 602.254.7477 or lupe@phoenixcommunityalliance.com.

This will be a great event where individuals, couples or entire families can make a difference to our city. Bring hats, sunscreen but don’t worry about tools and such… they are being taken care of by the clean-up sponsors.  Volunteers will be pruning trees, relocating weeds, laughing and having a great time.

Hope to see you there…

Gene Urban
The Urban Team – Connecting you to your next home, condo or loft.
602-234-5777

The Green Remodel Workshop in Phoenix

The folks at Green Street are putting on two Green Remodeling workshops in the Phoenix area. The first of the two workshops is being offered on April 1st for the first 24 people who sign up. 

The workshop is targeted for licensed professionals, including Architects, Contractors, Designers, Specifiers, Municipalities, Code Enforcers, Builders, Students, and anyone interested in revitalizing and making aging housing stock green and more energy efficient and they say it is not intended for the general public.

Below is an except of the Green Remodeling workshop description.

“The greenest building is the existing one”
The federal tax credits for green remodeling end energy efficient improvements have tripled to 30%. Industry research suggests that remodeling and retrofitting the nation’s older homes will have a more significant effect on reducing residential energy consumption than meeting even the most aggressive efficiency goals for new homes. Help your clients take advantage of government incentives and tax credits.

Upon completion of this session, you will be able to overcome common objections to going green, including the myth that green is too expensive, green is not durable, green is a gimmick, green materials are not easily available, and green does not make sense. The featured case study is Arizona’s first LEED certified single-family remodel, providing strong support for green remodeling. Attendees will learn common mistakes to avoid, best practices, how to design green, the cost and return on energy efficient improvements including solar, the latest in government incentives for green remodeling, green material sourcing, recycle and reuse guides, and an introduction to green rating systems including LEED and NAHB.

For more information on these workshops, visit the Green Street website at: http://www.greenstreetdev.com/green-remodel-workshop/

If you go, please send us an email about the event so we can post it to our friends here at Urban Life.

Happy St. Patty's to all...

Gene Urban
The Urban Team at Realty Executives
602-234-5777

 

Another Big Mistake as Banks Bypass Appraisers on Short Sales

The Federal Government's HAFA program is getting a lot of news these days. One aspect of HAFA is to streamline and set guidelines for the short sale process including the use of BPOs verses appraisals.

The first question you might ask is what the heck is a BPO? A BPO or broker price opinion is a quasi-appraisal performed by a licensed real estate agent. Essentially, the real estate agent is hired by the bank to evaluate the current market value of a property as part of the short sale process.

Normally, professional appraisers perform this function. If you've bought a home you'll remember the bank required an appraisal before they would approve the loan. Appraisers take over 2000 hours of course work to learn to perform their job and spend big bucks on specialty software as well.

WHAT'S THE PROBLEM WITH BPOS VERSES APPRAISALS?

The person doing the BPO does not have the skill sets an appraiser does. They are simply real estate agents who may have never taken classwork to learn how to do appraisals. Since Arizona doesn't require a real estate agent to have a GED, the agent doing complex market analysis could have flunked high school math.

Even more important is that an appraiser is an independent 3rd party verses the agent is either directly hired by the bank or could be a party to the sale of the home. Does something sound wrong about that to you... it should. A neutral 3rd party operating independently is pretty important in my book.

To add some fun to the conversation I've put a link to the boys at Think Big, Work Small. They have a great video expose on this topic. If you have never seen one of their v-news reports you have to take a look. It is no wonder they have millions of followers... they rock!!

Think Big Work Small Newz

WHAT CAN YOU DO TO HELP?

• Make some social noise.
• Tweet & FB this post and the Think Big Work Small guys link.
• Send the National Association of Realtors a tweet @askNAR.
• Call the Arizona Department of Real Estate, 602-771-7799, and let them know you think they are falling down on the job by allowing banks to determine how we do real estate in our State. You will get a receptionist, but tell them you are a tax payer and want to talk to the commissioner.

Thanks for helping pass on the message. The banks are step by step ruining our home values and neighborhoods. Letting them use BPOs verses appraisals just adds to the problem.

Gene Urban
The Urban Team at Realty Executives
602-234-5777

Buyer to Select Title Company on Fannie Mae REO Sales

Good news for people buying Fannie Mae owned homes.  Traditionally, Fannie Mae used nearly the same addendum for REO sales as banks. The addendum stated the buyer must use the seller’s title agents and cost of transfer taxes and stamps would be the buyer’s responsibility.

The bank and Fannie Mae title and escrow policy has been a source of continuation for us, as well as other Arizona real estate agents. In most all real estate transactions the home buyer got to choose his or her title and escrow company. Banks changed the rules by insisting buyers use their title company. In many cases these firms were over burdened with files and did poor work.  

Fannie Mae issued a new addendum that allows a buyer to select his or her own title agent. This is a change in FNMA Policy and is welcomed with open arms by the Arizona Real Estate Community.

To find out if the REO property is Fannie Mae, go to:

http://loanlookup.fanniemae.com/loanlookup/.

Section 2, B of the new Addendum is as follows:

2. Time is of the Essence: Settlement Date:

B. The closing shall take place on a date (“Settlement date”_ on or before ______________, 20_____ (“Expiration Date”), unless extended in writing signed by the Seller and the Purchaser or extended by the Seller under the terms of the agreement. The closing shall be held at a place so designated and approved by the Purchaser. The Purchaser has the right to make an independent selection of their own attorney, settlement company, escrow company, title company and/or title insurance company in connection with the closing. The date the closing takes place shall be referred to as the settlement Date for purposes of the Agreement. If the closing does not occur by the Expiration Date, or in any extension, the Agreement is automatically terminated and the Seller may retain any earnest money deposit as liquidated damages.

Thanks for being a passionate reader of Urban Life and we will endeavor to bring you the latest news on real estate and downtown Phoenix.

Gene Urban
The Urban Team at Realty Executives
602-234-5777

Phoenix Area Home Owners, New EPA Rules May Affect Remodeling Projects

Do you own a home built before 1979? Is your home considered a historic property? Do you have young children living or visiting your home? If you answered yes, be aware rules are about to change regarding the remodeling and repair of your home.

I’ve done a bit of cut and paste from the National Association of Home Builder’s web site that will give you their take on the new laws regarding renovation, repair and painting of older homes. In addition, at the end of this post is a news clip from 12 News in Phoenix offering more insight and information.

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The U.S. Environmental Protection Agency's Lead: Renovation, Repair and Painting rule governing the work of professional remodelers in homes where there is lead-based paint was published in the Federal Register on Earth Day, April 22. The rule will take effect in April 2010.

The rule addresses remodeling and renovation projects disturbing more than six square feet of potentially contaminated painted surfaces for all residential and multifamily structures built prior to 1978 that are inhabited or frequented by pregnant women and children under the age of six.

Summary of the Rule

Review the points below for a quick summary of the new EPA lead paint rule.

1.   Training and Certification

Beginning in April 2010, firms working in pre-1978 homes will need to be certified. Along with the firm certification, an employee will also need to be certified as a Certified Renovator. This employee will be responsible for training other employees and overseeing work practices and cleaning.

2.   Work Practices

Once work starts on a pre-1978 renovation, the Certified Renovator has a number of responsibilities. Before the work starts this person will post warning signs outside the work area and supervise setting up containment to prevent spreading dust. The rule lists specific containment procedures for both interior and exterior projects. It forbids certain work practices including open flame or torch burning, use of a heat gun that exceeds 1100°F, and high-speed sanding and grinding unless the tool is equipped with a HEPA exhaust control. Once the work is completed, the regulation specifies cleaning and waste disposal procedures. Clean up procedures must be supervised by a certified renovator.

3.   Verification and Record Keeping

After clean up is complete the certified renovator must verify the cleaning by matching a cleaning cloth with an EPA verification card. If the cloth appears dirtier or darker than the card the cleaning must be repeated.

A complete file of records on the project must be kept by the certified renovator for three years. These records include, but aren't limited to: verification of owner/occupant receipt of the Renovate Right pamphlet or attempt to inform, documentation of work practices, Certified Renovator certification, and proof of worker training. NAHB believes that record keeping will be a major enforcement tool for the regulation.

4.   Exemptions

It is important to note that these work practices may be waived under these conditions:

• The home or child occupied facility was built after 1978.
• The repairs are minor, with interior work disturbing less than six square feet or exteriors disturbing less than 20 square feet being exempt.
• The homeowner may also opt out by signing a waiver if there are no children under age six frequently visiting the property, no one in the home is pregnant, or the property is not a child-occupied facility. EPA has proposed removing this opt-out from the rule.
• If the house or components test lead free by a Certified Risk Assessor, Lead Inspector or Certified Renovator

CHANNEL 12 NEWS CLIP:

We’ll try and get more information to you on this subject as it evolves… including a place to find certified renovation contractors in Arizona. Our research, thus far, has turned a blank page on such searches.

Best to you,

Gene & Ron Urban
The Urban Team at Realty Executives
602-234-5777

Our commentary is simply that, personal commentary and is not intended as legal advise.

Real Estate Agents Assisting Short Sales, Are You In Compliance

Ron and I are concerned many real estate agents do not understand the responsibly they take on when helping a client with their short sale submission package. In the normal course of our duties we do not handle a client's personal information such as SS#'s, bank statements, and tax returns. However, if a real estate agent helps a client assemble and submit a short sale package they likely have access and or possession of private information. The question is, "Are you compliant with regulations covering these actions?"

Below is a piece our friend Doug Farnam at Thomson Conant PLC, a Phoenix based law firm, wrote to help real estate agents performing this task.

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Short Sales and the Security Nightmare: Are You in Compliance?

Doug Farnam, Thomson Conant, PLC

Did you know that there are compliance regulations that now apply to you and your business as a result of collecting financial information to short sell a property?

Did you know that there is no limit on damages in a lawsuit relating to improper handling of confidential data?

Most loan originators that started offering loan modifications and short sale negotiations have come from a business environment that is highly regulated. Even though some mortgage lenders are not in compliance, they are aware of the rules associated with accepting sensitive client information. Most real estate professionals, however, have not had to deal with compliance regulation and processes such as DSS (Data Security Standard), DLP (Data Loss Prevention) and ILM (Information Lifecycle Management). These are more than just fancy terms. These processes apply to who has access to client information, for how long, how data is stored and disposed of, and can you show logs and security measures to establish compliance.

If ID theft is linked back to a leak at your company, are you prepared to establish how you have followed all required regulations? Can you produce a policies and procedures document and logs to show these regulations were followed? Before you tell yourself this could never happen at your business, think about this; cyber crime is growing at record pace and becoming more sophisticated each day. Even the largest companies with the biggest security budgets have been infiltrated. Although the economic return from hacking your computer may be small by comparison, your computer is an easy target. A hacker will always go after the low-hanging fruit first.

There is no way to guarantee your computer or office has not, or will not be compromised. Compliance is about minimizing that risk and being able to show that you did your due diligence to secure the data in the event of a breach.

Some things to consider even if you don’t store client information on your computer:

Email is not secure. Do not accept information by email. Additionally, if your email syncs to your phone you have just extended the endpoints of your data network and these devices should be encrypted. It is possible to have data stolen from your phone through a blue tooth connection without your knowledge and of course there is always the possibility of losing your phone.

Chat (messaging) programs are also not secure, they store a chat log on your computer, and are a common method hackers use to gain access to, or upload malware to your computer that will monitor of your activity.

Many lenders require information be entered into an online system (i.e. Equator). If your computer is compromised this data could be captured by hackers and sold to the highest bidder.

Required Regulations:

There are many regulations that apply when you start accepting sensitive client data. Most of these contain overlapping requirements. For many companies, following the PCI (Payment Card Industry) requirements covers the minimum requirements for many other regulations. Even if you do not accept or process credit cards, PCI is a well accepted standard and is very clear in its definitions. It is also well supported by numerous software programs for testing and report generation. As an alternative to PCI, ISO27001 is becoming an accepted standard. Because the data collected by a client relate to mortgage origination there are parts of SOX (Sarbanes Oxley) and GLBA (Gramm-Leach-Bliley Act) that could apply. But these last two are not as well defined as PCI or ISO27001 and are somewhat vague as to DSS requirements. FISMA is a government standard released by NIST (National Institute of Standards and Technology) that seems to have some teeth as far as enforcement and penalties.

Some states are adopting their own requirements, such as Massachusetts in the case of MA201. These state regulations can apply not only to companies based in that state, but to data stored relating to any consumers based in that state. There are also companies that can test and certify your company for compliance to any of these regulations.

In general these regulations cover requirements for properly configured firewalls, endpoint security, properly maintained anti-virus and anti-malware software, password minimum requirements, keycard access to rooms hosting computers and paper records, policies and procedures for ILM, logging requirements, all applications on the network must be tested to meet OWASP and SANS standards and wireless security.

You are responsible for the security of the data you receive from a client, even if you have a third party handle the negotiations and processing. It is imperative that you confirm that any software you use to process or any third party used to process this data meet these requirements.

Here are some links to help you with tracking and compliance:

PCI (Payment Card Industry) Compliance
Policies and Procedures Template for PCI
GLBA (Gramm-Leach-Bliley Act)
FISMA
ISO27001
MA201
MediationNet (Short sale software for attorneys and processors.)

After reading this, is there any wonder why The Urban Team has clients work directly with an attorney to prepare and submit the short sale package?

Gene Urban
The Urban Team at Realty Executives
602-234-5777
For more information about short sales in the Greater Phoenix area, visit our web site:  www.Short-Sale-Phoenix.com

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The information in this post was provided by Thomson Conant, PLC. All opinions and advice are those of Thomson Conant PLC.  They may be reached at 602-326-6552

Art Detour Is Happening In Downtown Phoenix

One of the truly grand events in downtown Phoenix is Art Detour and it is happening this weekend, March 6-7, 2010. 

If you haven't been, Art Detour is when a hundred or so artists, 60 some odd galleries, a great mix of musicians and several thousand Phoenicians gather to enjoy the arts scene in downtown Phoenix.

Art Detour is sponsored by ArtLink Phoenix, the same folks that bring you First Friday. Over coffee with ArtiLink board member David Appleby, it was clear that there is great passion for this annual event. Despite the ciaos of last minute details, David is excited to share the downtown arts scene with new and old friends.

Here are the details:

What: Your art adventure is self-guided, but ArtLink has maps. You'll amble through several central Phoenix areas including Roosevelt Row, Grand Avenue, Seventh Avenue and the Melrose district. Don't worry, they have shuttles to get you around to the various regions.
When: 10 a.m.-6 p.m., Saturday, March 6; noon-5 p.m., Sunday March 7.
Where: Shuttles leave from Phoenix Center for the Arts, 1202 N. Third St., Phoenix. This is also where you get your map/guide.
Admission: Free.
Support ArtLink Phoenix: artlinkphoenix.com.