Our thanks as always to Doom friend MR of Tucson, who keeps us abreast of the nation’s “sickest” housing market. MR has been tracking a property for us in Tucson since March.  It was purchased by an investor in 2007 and occupied by renters until the property went into foreclosure.  Now the home is being marketed by Freddie Mac– sort of. Here’s the “For Sale” sign.  As you can see, it’s not exactly displayed prominently. [MR said that you have to trespass on the property to see this sign.  It is very discreet.] If you go to the HomeSteps website,…
Read more…

T.M., who keeps us abreast of doings in the Tucson market, sent us an article from the Tucson Weekly entitled Finding the Bottom:  How Low Will Tucson Prices Go?  The article was amazingly well balanced, with more information and less spin than usual.  However, the best information was down in the comments.  Ricardo Small, a recently retired appraiser from Tucson, weighed in on lenders and appraisals, as well as the critique on Tucson home prices.  I tried to contact Mr. Small, but the email listed for his appraisal business is no longer good, and he no longer has his website….
Read more…

There are a number of loan modification proposals out there for underwater homeowners.  Virtually all of them however, claim to be only for homeowners who actually occupy the property– not for investors and speculators.  Here’s one such example: NEW YORK — The Obama administration is seeking to force the nation’s five largest mortgage firms to reduce monthly payments for as many as three million distressed homeowners in as little as six months as part of an agreement to settle accusations of improper foreclosures and violations of consumer protection laws, six people familiar with the matter said. Here’s what this proposal…
Read more…

The government is desperate to get people to buy houses, and will pay you $22,000 if you are willing to buy one in south Tucson: [Hat tip M.R.!] Qualified home buyers can get a $20,000 subsidy – courtesy of the federal stimulus – if they take a home on the south side that helps reduce the glut of vacant, foreclosed properties in that part of Tucson. Pima County has secured $22 million from the American Reinvestment and Recovery Act to pay for the neighborhood stabilization program. “It’s sort of a dual goal: to assist people getting into homes as well…
Read more…

This is almost a ho hum moment–another case of mortgage fraud, this time from Tucson: [Thanks L!] A Tucson loan officer and real estate agent are being indicted for mortgage fraud. A federal grand jury returned a six-count indictment against  Scott Tyson, 43, and Susan Levy, 69, of Tucson, Ariz.  The indictment charges the defendants with wire fraud and conspiracy to commit wire fraud. Arizona now ranks in the top nationally for mortgage fraud due to illegal loans made during and after the real estate boom. According to the indictment, licensed real estate agent Levy obtained $1.2 million dollars in…
Read more…

HousingDoom’s “Understatement of the Year Award” has to go to the Arizona Association of Realtors for this statement in their January Arizona Outlook : [Thanks L!] The underlying fundamentals for Arizona are somewhat weaker than is the case nationally, measured in terms of unemployment, distressed property, homeowner equity and commercial space availability. They offered as evidence the following chart:

I went to a landscape seminar years ago where the speaker offered a sage bit of advice.  He said that when landscaping a property, it was important to consider the fact that trees and shrubs grow and get larger over time.  That should seem obvious, but too many people landscape a property only considering how the property looks today, without considering how it will look in the future.  He said that envisioning how the landscape will look 20 years from now will prevent mistakes like trees too near walks or foundations where they can cause damage, or large thorny hedges…
Read more…

Anyone who’s ever watched any late night television has seen those commercials for reverse mortgage.  They are always touted by older celebrities claiming how safe these things are.  For those who actually believe that there’s little risk to a reverse mortgage, here’s a cautionary tale from our faithful longtime correspondent in Tucson- M.R.: Recently I passed a vacant house with a NOTS posted on the front fence. I know the owner of this property — she’s an elderly lady who took out a reverse mortgage in 2006. The NOTS gave the amount, $285,500. Twist, in no way, even during the…
Read more…

When Arizona Attorney General Terry Goddard says The violations alleged in this lawsuit are among the worst abuses of vulnerable consumers that I’ve seen in my time [as attorney general], you know he’s saying something.  Fraud in the real estate industry has reached new highs [or lows, depending on your point of view] here in recent years. The Attorney General’s Office filed a consumer fraud lawsuit in Pima County against 13 real estate agents and businesses. Affected were over 130 investors and 270 prospective homebuyers, multiple defrauded lenders and 130 properties in foreclosure: [Thanks M.R.!] The complaint states that the…
Read more…

  Tucson: Five of last year’s Parade of Homes properties have gone back to the bank- and there were only seven of them: [Hat tip M.R.!] Five custom homes featured in last year’s Parade of Homes have now gone back to the Bank of Oklahoma after several months of negotiations. Their failure to sell reflects the sharp decline in the high-end housing market where there are soft prices, a limited number of buyers and plenty of properties to choose from. Of the seven featured properties in the Sonoran Preserve on the Bajada, near Dove Mountain in Marana, only one home…
Read more…

We posted a video last month where a lender bulldozed some homes it had taken back from a homebuilder.  Now we’ve got a homebuilder doing it: [Hat tip M.R.!] KB Home has torn down its three model homes at its abandoned Saguaro Springs project in Marana. Liability concerns led to the demolition last week, a company spokesman said. Back in 2005, plans for Saguaro Springs called for 2,400 homes near Rattlesnake Pass just west of the Tucson Mountains.

The ailing economy is keeping things busy for the Tucson courts these days Lawsuits over unpaid debts and other financial disputes are up 33 and 45 percent, respectively, in Pima County Justice and Superior courts over the past year, in yet another indicator of the economic downturn. Court officials say they’ve seen an upswing in lawsuits filed over bad checks, repossessed vehicles, loan defaults, credit cards and other contract disputes, although they can’t provide exact numbers for each specific type of case. In addition, more landlords are seeking to evict their tenants. Justice Court handles cases involving amounts less than…
Read more…

  While government officials are running around trying to build "confidence", it is likely that their actions are, in fact, doing the opposite.  Consider these points made by Robert Robb of the Arizona Republic:  [Hat tip MR!] Governments all over the globe are frenetically trying everything to stop the economic slide and keep interest rates low. Meanwhile, private capital remains on the sidelines. There may be a connection.   With governments trying to figure out how much capital to put into financial institutions and how much equity to take in exchange, why would any private investor commit any capital? Until…
Read more…

  Another Arizona condominium project seems to be coming up a little short: [Hat tip MR!] Developers are planning to put the partially completed condominium complex 44 East Broadway on the market in hopes of finding a buyer or investor with deep enough pockets to finish the job. “It’s not a panicky situation,” said James LeBeau, managing partner in the project. But “we can’t let it limp along anymore.” LeBeau and other partners, including Mesa construction company president John Dunn, were attempting to convert the former federal courthouse annex into luxury condominiums, including several high-end penthouses. Now, LeBeau said, they…
Read more…

Another one bites the dust: A Scottsdale home builder recognized two years ago as an up-and-coming business has collapsed in the weak market, leaving in its wake lawsuits by investors, lenders and contractors. Charlevoix Homes, which has restructured as Copperleaf Communities, is trying to salvage its stalled communities, find new lenders and pay off investors, said Keith Hendricks, an attorney representing company founder Michael Roberts. Meanwhile, Roberts has filed for a Chapter 7 personal bankruptcy, listing up to $50 million in liabilities and more than 100 creditors. Creditors in the case met Tuesday morning. Charlevoix Homes LLC filed for Chapter…
Read more…