may/june frontrunner

S C H O O L

Renewal Class Schedules onPages 6 thru 11

www.HoganSchool.com MAY/ JUNE 2012

4023 East Grant Road Tucson, AZ 85712520/327-6849 800/794-1390

[email protected]

REAL ESTATE MORTGAGE APPRAISAL INVESTMENT

Meet The Short Sale& REO Experts –

Update 2012!

frontrunnerfrontrunner� �

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For five years, short sales and foreclosures have dominatedTucson's market and will continue to do so in the future.The agents who have prospered in this market have adaptedtheir business plans and learned the new tools of puttingtransactions together. Now these agents are going to onceagain share their expertise with you in this updated course.

(Continued on Page 3)

In this presentationyou can meet the Short Sale

and REO Experts and learn howthey have prospered in this

upside-down market.

KEN RYAN LARRY POLLMAN JIM SNODGRASS DAVE KIPLING

�

●

JIM HOGANDistinguishedReal Estate InstructorMODERATOR

BOB ZACHMEIER

©2012 Hogan School of Real Estate 3May/June 2012

KEN RYANKen Ryan is a native Tucsonan with forty two years in thereal estate industry. Twenty nine of those years were as ahomebuilder/developer, fourteen years as an associatebroker and Ken has been a Branch Manager with LongRealty for the past seven years. Ken is the Co-chair of theShort Sale resource Committee for Long and has been amember of the AAR Professional Standards Committeefor four years

LARRY POLLMANLarry Pollman is a REALTOR with HomeSmart, Tucson.Larry has over 17 years of short sale experience. He wasthe Designated Broker of a company that specialized inshort sales and at one time his company carried moreshort sale listings than any other Tucson real estatecompany. Larry has lectured on the ins and outs of shortsales on behalf of the Tucson Association of REALTORS,the Arizona Association of REALTORS, and for numerousnonprofit agencies. He served on the committee thatupdated the AAR short sale addenda, chaired the com-mittee that set up the short sale templates forSureClose, and served on ADRE's Short Sale Stakeholder'sMeeting that created the Short Sale Seller Advisory.

JIM SNODGRASSAfter an 18-year career in the corporate world anddabbling as a part time real estate agent, Jim Snodgrassdecided to leave the crazy corporate redbrick behindand peruse the enjoyable life as a real estate agent.

Friday, June 22, 20129 am - 11:50 am$35.00* Approved for

3 hours Agency Law credit

*This course is not included in the Hogan SchoolPackaged Price Discounts

Meet the Experts - Update 2012Short Sales & Bank Owned Properties

DAVE KIPLINGDave and Francie have a variety of experiences inArizona, after migrating from the Midwest to theSouthwest and meeting in Tucson at The University ofArizona. Living in both Phoenix and Tucson, travelingextensively throughout the state, as well as directinga camp for underprivileged children in Picacho(located between the two cities) for eight years, theybring that combination of developed talents to theircurrent real estate team focusing on REO properties.

BOB ZACHMEIERBob was born and raised in Mandan, North Dakota.The third of six children, he is no stranger to hardwork and friendly competition. After graduation fromNorth Dakota State College of Science in 1980, Bobwas hired by Texas Instruments and lived in tenstates (including Arizona) during his first five years ofemployment. Bob purchased his first rental propertyat the age of 22 and has been a landlord since 1982.He's bought and sold property in several states andhas fine-tuned the process along the way. In 2001 hedeveloped a course and began teaching others howto achieve financial freedom with rental property.He can cast an insightful and positive light on nearlyany situation.

BANK OWNED PROPERTY EXPERTS

SHORT SALES EXPERTS

(Continued from Page 1)

In this presentation you can meet the Short Sale andREO Experts and learn how they have prospered inthis upside-down market. Two panel discussions willbe facilitated by Jim Hogan. The experts on the ShortSale panel are: Larry Pollman, Associate Broker atHomesmart; Ken Ryan, Associate Broker with LongRealty; and Jim Snodgrass, Associate Broker with TierraAntigua. Each of these experts bring their uniquetalents to the table to help you list, sell and close moreshort sale properties.

If short sales aren't your thing then the Bank Ownedproperty experts will get your attention. They are: BobZachmeier, Designated Broker at Win3 Realty; and DaveKipling, Keller Williams Realty Tucson Territory. Thesetwo agents have hundreds of listings, many of whichare bank owned properties.

However just as fast as he made this change so didthe real estate market, buyers could not obtainfinancing and home values were plummeting andformer clients found themselves upside down intheir homes with no way out. So in order to stay inthe real estate business Snodgrass became a shortsale expert. Jim is an associate broker at TierraAntigua Realty has an undergraduate degree inmarketing, an MBA and after all his experiencesbehind him has recently become a certified shortsale specialist.


By Ashira Davis-LoveEffective with all case numbers assigned on or after

April 9, 2012, the Federal Housing Administration (FHA)will be increasing the annual mortgage insurance from1.15% of the base loan amount to 1.25%. This appliesto 30 year fixed loans with a loan to value ratio > 95%.The up-front premium that's typically financed willincrease from 1% to 1.75%.

How will this impact an FHA buyer? Using a pur-chase price of $150,000, with the minimum 3.5% downpayment (base loan amount of $144,750), their monthlypayment would increase by $18 per month.

FHA Changes Guidelines and Increases Mortgage Insurance

"Ashira Davis-Love is a MortgageAdvisor with Sunstreet Mortgage.She has been specializing in first-time homebuyer and downpayment assistance programssince 2001. She also volunteers onthe RESPA committee at theTucson Association of Realtors."

In addition, there's an important FHA guidelinechange effective April 1st, 2012 that will make ittougher for some to qualify for an FHA loan. If aborrower has $1,000 or more in total outstandingcollections they either have to be satisfied orthey must enter into a re-payment agreementand prove they've made 3 months payments ontime before qualifying. This means if a borrowerhad 4 medical collections at $250 each, thisguideline would apply to them. As of now, thereare no restrictions on date. This just re-iteratesthe importance of buyers speaking to a lenderbefore looking for a home.

BPOs - The Agent's Rolein the Valuation ProcessAs a listing a selling agent, it is best to thoroughly

understand the BPO process and how it can affect yourshort sale and bank owned transactions. Short sales andforeclosed bank owned properties will be a large part ofthe market for years to come and BPO orders will increaseaccordingly.

There are currently over 22,000 "open" BPO orders inArizona. Over 10 MILLION BPOs are performed annuallyaccording to industry estimates. Knowing how to performBPOs created multiple opportunities for professionalgrowth and income.

Lean how to:• Get BPO assignments

• Prepare professional BPOs• Evaluate market valuation tools

• Identify and weigh factors influencing value

Tuesday, July 10, 20128:30am - 5pm

Tuition: $997 hours General credit

This course is the educational component for NAR's BPORcertification. There is a charge of $199 to obtain the BPORCertification and additional requirements to be registered

with the preferred provider panel. For more info visitwww.hoganschool.com

DICK’S COMMUNICATION CORNER

©2012 Hogan School of Real Estate 5

The Emotional Bank Account

May/June 2012

into my client's emotional bank account through listen-ing, honesty, and keeping my commitments I build upa reserve. My clients trust toward me becomes higher.I can even make mistakes and that trust level willcompensate for it. When the trust account is highcommunication is easy, instant, and effective.

If I have a habit of showing disrespect, not listening,ignoring or betraying a client's trust, eventually myemotional bank account is overdrawn. There may evenbe times when automatic withdrawals are made that Iam not even aware of. If the trust level gets low I haveto be very careful of everything I say and if a largereserve of trust in not sustained by continuing deposits,

We all know what a financialbank account is. We makedeposits into it and build up areserve from which we canmake withdrawals when weneed to. An emotional bankaccount is a metaphor thatdescribes the amount of trustthat's been built up in a rela-tionship. It's the feeling ofsafeness you have with anotherhuman being. If I make deposits

by Dick Martin

a client relationship will deteriorate.Keeping a commitment or a promise is a major

deposit. Keeping a commitment or a promise is makingwhat is important to the other person important to you.Breaking a commitment or a promise is a major with-drawal. In fact, there's probably not a more massivewithdrawal than to break a commitment or a promisethat's important to someone.

Fulfilling and exceeding client expectations makesgreat deposits in a client relationship. Violating clientexpectations makes for great withdrawals. Violatingclient expectations is the cause of almost all relation-ship difficulties.

Listening with the intent to understand will satisfy aclient's need to be understood, to be affirmed, to bevalidated and to be appreciated. Listening withoutjudging or preaching is the most important deposityou can make and it is the key to every other deposit.You simply don't know what constitutes a deposit toanother person until you understand that individual.The greatest gift that we can receive from anotherperson is pure attention and a deep understanding.When someone listens to you, understands you, youopen yourself up and gravitate toward that person.Hopefully that person is you!

COMING SOON!

Arizona Loan Originator CE Requirements Course will contain:• 3 Hours Federal Law• 2 Hours Ethics• 2 Hours Non-Traditional Mortgage Lending• 1 Hour Arizona Specific

Tuition for 8-hour program - $99.00

This 8-hour program will also be approved by the Arizona Department of Real Estatefor real estate renewal hours.

8-hour NMLS ApprovedContinuing Education

8 Hour AZ SAFE Comprehensive: Compliance in ActionAll Loan Originators are required to take 8 hours of

NMLS Approved courses to renew their Loan Originator License.Licenses must be renewed by December 31, 2012

Hogan School will be providing classroom and online classes!

MAY 2012RENEWATHONS

6 EVENINGS + 2 DAY CLASSES

3 Day Renewathon

Thu May 10, 2012 Writing Contracts with Confidence 3 Contract Law6pm - 8:50pm Timothy Remick, Esq.

Tue May 15, 2012 Hotline Case Studies 3 RE Legal Issues6pm - 8:50pm Jim Strong

Thu May 17, 2012 Practical Issues in Fair Housing 3 Fair Housing6pm - 8:50pm Cheryl Terpening ABR, CRS, GRI

Tue May 22, 2012 Understanding Water Availability, Use & Law 3 Disclosure6pm - 8:50pm Bill DeStefano

Wed May 23, 2012 Broker Management Clinic 3 Commissioner’s2:30pm - 5:15pm George Jenson Standards

Thu May 24, 2012 Real Estate in Estate Planning 3 RE Legal Issues11am - 1:45pm Mark Valentine, Esq.

Thu May 24, 2012 2011-2012 Code of Ethics with Case Studies 3 Commissioner’s6pm - 8:50pm Mike Mulvena Standards

Tue May 29, 2012 Pricing Properties Right 3 Agency Law6pm - 8:50pm George Jenson

Tue May 22, 2012 Disclosure & Risk Reduction 3 Disclosure8am - 10:45am Cheryl Terpening ABR, CRS, GRI

Tue May 22, 2012 RESPA & Loan Fraud: What You Don’t Know Can Hurt You 3 RE Legal Issues11am - 1:45pm Ashira Davis-Love

Tue May 22, 2012 Agency Law: Understanding Its Protections for Today’s Agent 3 Agency Law2:30pm - 5:15pm Timothy Remick, Esq.

Wed May 23, 2012 Fair Housing Case Studies 3 Fair Housing8am - 10:45am Jim Strong

Wed May 23, 2012 Bullet Proof Contracts 3 Contract Law11am - 1:45pm Mike Monroe, Esq.

Wed Mar 23, 2012 Broker Management Clinic 3 Commissioner’s2:30pm - 5:15pm George Jenson Standards

Thu May 24, 2012 Valuing Residential Property Using Appraisal Techniques 3 General8am - 10:45am Michael Ashurst

Thu May 24, 2012 Real Estate in Estate Planning 3 RE Legal Issues11am - 1:45pm Mark Valentine, Esq.

*Indicates approved for Appraisal Continuing Education credit.

4023 East Grant Road(one block East of Alvernon)


JUNE 2012RENEWATHONS

8 EVENINGSTue June 5, 2012 The 4 Sides of Disclosure 3 Disclosure6pm - 8:50pm Jim Strong

Thu June 7 , 2012 Fair Housing Do’s & Don’ts 3 Fair Housing6pm - 8:50pm Dan Carapellucci

Tue June 12, 2012 Making Money with REO Properties 3 RE Legal Issues6pm - 8:50pm George Jenson

Thu June 14, 2012 Agency Law: Understanding Its Protections for Today’s Agents 3 Agency Law6pm - 8:50pm Timothy Remick, Esq.

Tue June 19, 2012 2011-2012 Code of Ethics with Case Studies 3 Commissioner’s6pm - 8:50pm Mike Mulvena Standards

Thu June 21, 2012 Private Water Wells 3 RE Legal Issues6pm - 8:50pm Gary Hix, R.G., CWD/PI

Tue June 26, 2012 Broker Management Clinic 3 Commissioner’s6pm - 8:50pm Richard Koevary Standards

Thu June 28, 2012 Solving Short Sales & REO Contract Issues 3 Contract Law6pm - 8:50pm Cheryl Terpening ABR, CRS, GRI

Mon June 25, 2012 Seller Financing & the AAR Contract 3 Contract Law8am - 10:45am Richard Koevary

Mon June 25, 2012 Real Estate Auction as a Sales Tool 3 General11am - 1:45pm Tom Starrs

Mon June 25, 2012 Community Association Law 3 RE Legal Issues2:30pm - 5:15pm Carolyn Goldschmidt, Esq.

Tue June 26, 2012 Surfing with the Commish: Effective Use of the ADE Website 3 Commissioner’s8am - 10:45am Jim Hogan Standards

Tue June 26, 2012 Risk Reduction: Avoiding E & O Claims 3 Disclosure11am - 1:45pm Lisa Robinson

Tue June 26, 2012 Fair Housing Do’s & Don’ts 3 Fair Housing2:30pm - 5:15pm Dan Carapellucci

Wed June 27, 2012 2011-2012 Code of Ethics with Case Studies 3 Commissioner’s8am - 10:45am Cheryl Terpening ABR, CRS, GRI Standards

Wed June 27, 2012 Out of the Line of Fire: Avoiding Professional Liability 3 Agency Law11am - 1:45pm Thomas Stoops

* Indicates approved for Appraisal Continuing Education credit.

4023 East Grant Road(one block East of Alvernon)

3 Day Renewathon – Does NOT include Broker Management Clinic


*

May 10 Writing Contracts with Confidence Timothy Remick, Esq.Thu This class will review contract law principles, the current contract and writing the 3 Contract Law6PM - 8:50PM contract. $25.00

May 11 Short Sales and Foreclosures: What Real Estate Professionals Need to Know NAR Jim HoganFri Knowing how to help sellers maneuver the complexities of short sales and foreclosure 7 RE Legal Issues8:30AM - 4:30PM opportunities are not merely good skills. Agents with the proper tools and training $99.00

can use these specialty areas to build their business for the long term.

May 15 Hotline Case Studies Jim StrongTue Review case studies and gain a better understanding of the latest interpretations and 3 RE Legal Issues6PM - 8:50PM applications of real estate law and the use of the AAR Residential Purchase Agreement. $25.00

May 17 Practical Issues in Fair Housing Cheryl Terpening ABR, CRS, GRIThu You will be presented with a number of practical issues encountered with the public. 3 Fair Housing6PM - 8:50PM This course will educate the licensee on compliance of fair housing legislation. $25.00

May 18 Intro Contract Writing Jim StrongFri Learn how to write listings and purchase contracts. Mandatory for new agents for 6 (3 Contract Law/9AM - 3:50PM license activiation 3 RE Legal Issues)

$50.00

May 18 Presentation Skills & Teaching Methods - Instructor Development Workshop Jim HoganFri This IDW will assist instructors in developing better classroom presentation skills and No Credit9AM - 12PM teaching methods in order to enhance the learning experience for their students. $49.00

ADRE approved for the initial application and renewal for all instructors.

May 22 Disclosure & Risk Reduction Cheryl Terpening ABR, CRS, GRITue This course includes detailed discussions on the problems agents encounter, the 3 Disclosure8AM -10:45AM disclosures that need to be made to consumers and risk reduction strategies that $25.00

benefit consumers and real estate licensees.

May 22 RESPA & Loan Fraud: What You Don’t Know Can Hurt You Ashira Davis-LoveTue This course will cover many of the areas where real estate licensees could be violating 3 RE Legal Issues11AM - 1:45PM RESPA and give the licensee direction on how to follow Federal law in these areas. $25.00

May 22 Agency Law: Understanding Its Protections for Today’s Agents Timothy Remick, Esq.Tue Learn the duties and obligations about various types of agency relationships. 3 Agency Law2:30PM - 5:15PM $25.00

May 22 Understanding Water Availability, Use & Law William DeStefanoTue Learn what to do as a real estate professional on water knowledge and how to better 3 Disclosure6PM - 8:50PM serve the needs and wants of your clients. $25.00

May 23 Fair Housing Case Studies Jim StrongWed Get information on the latest fair housing laws from new fair housing case studies. 3 Fair Housing8AM - 10:45AM $25.00

May 23 Bullet Proof Contracts Mike Monroe, Esq.Wed Mike will focus on the necessary legal ingredients of an enforceable contract. 3 Contract Law11AM - 1:45PM $25.00

MAY 2012 RENEWAL SCHEDULEHOGAN SCHOOL OF REAL ESTATE, INC. 4023 EAST GRANT ROAD, TUCSON, AZ 85712(520) 327-6849 (800) 794-1390 FAX (520) 325-8950 www.hoganschool.com

24 hours are presently required for renewal. 3 hours Agency Law, 3 hours Commissioner’s Standards, 3 hours Contract Law, 3 hours Disclosure,3 hours Fair Housing, 3 hours Real Estate Legal Issues (Legal Issues) PLUS 6 hours in ANY CATEGORY as long as it is NOT the exact same course.

The Real Estate Department allows licensees to take a maximum of 9 hours in one 24-hour period.Designated brokers and self-employed brokers are required to attend a 3-hour Broker Management Clinic with every two year renewal.

Pre-Registration discount now available:You may pre-pay and register for your renewal classes and receive the following discount:24 hours - $175 21 hours - $150 18 hours - $135 15 hours - $115 12 hours - $90

** Indicates Excluded from the Prepaid Packages.* Indicates Approved for Appraisal Continuing Education credit.


**

**

May 23 Broker Management Clinic George JensonWed Designated brokers are required to take this course every two years and new broker 3 Commissioner’s Standards2:30PM - 5:15PM agents prior to license activation. $25.00

May 24 Valuing Residential Property Using Appraisal Techniques Michael AshurstThu This course covers the fundamental concepts of “Real Property” value and how they can 3 General8AM - 10:45AM be applied to determine residential real estate valuations; this is a practical application $25.00

when agents are representing sellers and buyers in the transactions of Real Property.

May 24 Real Estate in Estate Planning - Is Your House in Order? Mark Valentine, Esq.Thu An overview of estate planning, investment strategies and tax & trust strategies. 3 RE Legal Issues11AM - 1:45PM $25.00

May 24 2011-2012 Code of Ethics with Case Studies Mike MulvenaThu Meet NAR’s 4-year requirement in this engaging class and gain 3 hours Commissioner’s 3 Commissioner’s Standards6PM - 8:50PM Standards CE as well. $25.00

May 29 Pricing Properties Right George JensonTue Listings not selling? Sellers not rational? How can you meet your obligations to your 3 Agency Law6PM - 8:50PM clients but deliver them the “dose of reality” they need in pricing their property? $25.00

When coming to class is just too inconvenient...TAKE HOGAN’S ONLINE CE!

Hogan’s online renewal classes designed for AZ Licensees by AZ experts on AZ topics.At your convenience and with the click of your mouse, you will experience the same quality education with

fun and flair that only Hogan School can deliver. So what are you waiting for? Grab a cup of coffee,learn and enjoy the experience! We’re ready when you are - your Renewal Hours are waiting.

www.HoganSchool.com

24 hour Package (Broker or Salesperson) $13518 hour Package $105

Individual 3 hour Classes $25

• Fair Housing Compliance

• Green Real Estate

• Litigation in Real Estate

• Short Sales & REO Properties

• Surviving Litigation in Real Estate

• Top 10 Disclosure Issues

• Financial Issues in Contract Writing NEW CLASS


• Agency Law - Conversion about the Past, Present & Future

• Arizona Broker Management Clinic

• Code of Ethics with Case Studies

• Contract Law with Case Studies

• Dealing with the Multi-Cultural Client

• Disclosure: Road Map for Real Estate

10 ©2012 Hogan School of Real Estate

JUNE 2012 RENEWAL SCHEDULEHOGAN SCHOOL OF REAL ESTATE, INC. 4023 EAST GRANT ROAD, TUCSON, AZ 85712(520) 327-6849 (800) 794-1390 FAX (520) 325-8950 www.hoganschool.com

24 hours are presently required for renewal. 3 hours Agency Law, 3 hours Commissioner’s Standards, 3 hours Contract Law, 3 hours Disclosure,3 hours Fair Housing, 3 hours Real Estate Legal Issues (Legal Issues) PLUS 6 hours in ANY CATEGORY as long as it is NOT the exact same course.

The Real Estate Department allows licensees to take a maximum of 9 hours in one 24-hour period.Designated brokers and self-employed brokers are required to attend a 3-hour Broker Management Clinic with every two year renewal.

Pre-Registration discount now available:You may pre-pay and register for your renewal classes and receive the following discount:24 hours - $175 21 hours - $150 18 hours - $135 15 hours - $115 12 hours - $90

** Indicates Excluded from the Prepaid Packages.* Indicates Approved for Appraisal Continuing Education credit.

May/June 2012

*

**

Jun 5 The 4 Sides of Disclosure Jim StrongTue Learn to identify disclosure obligations, common material acts warranting disclosure, 3 Disclosure6PM - 8:50PM and common “red flags.” $25.00

Jun 7 Fair Housing: Do’s & Don’ts Dan CarapellucciThu This class will assist licensees and their clients in dealing with today’s complex Fair 3 Fair Housing6PM - 8:50PM Housing issues by familiarization with Fair Housing laws and application. $25.00

Jun 12 Making Money with REO Properties George JensonTue Learn how to handle bank and lender owned properties which are currently on the 3 RE Legal Issues6PM - 8:50PM market. Be better able to protect your client’s interest in these types of contracts. $25.00

Jun 14 Agency Law: Understanding Its Protections for Today’s Agents Timothy Remick, Esq.Thu Learn the duties and obligations about various types of agency relationships. 3 Agency Law6PM - 8:50PM $25.00

Jun 19 2011-2012 Code of Ethics with Case Studies Mike MulvenaTue Meet NAR’s 4-year requirement in this engaging class and gain 3 hours Commissioner’s 3 Commissioner’s Standards6PM - 8:50PM Standards CE as well. $25.00

Jun 21 Private Water Wells Gary L. Hix, R.G., CWD/PIThu Gary will discuss private homeowner rights to have a domestic water well. Learn from 3 RE Legal Issues6PM - 8:50PM an expert about well classifications, registrations and how to locate wells. $25.00

Jun 22 Meet the Short Sale & REO Experts - Updates 2012 Jim HoganFri Gain expertise on short sale and bank owned properties from agents who have 3 Agency Law9AM -11:50AM significant expertise and knowledge in these areas. Jim Hogan will set the stage for $35.00

the discussion by presenting the current state of the market in short sales andbank owned (foreclosure) properties.

Jun 23 Disclosure & Risk Reduction Richard KoevaryFri This course includes detailed discussions on the problems agents encounter, the 3 Disclosure9AM -11:50AM disclosures that need to be made to consumers and risk reduction strategies that $25.00

benefit consumers and real estate licensees.

Jun 23 Intro Contract Writing Cheryl Terpening ABR, CRS, GRISat Learn how to write listings and purchase contracts. Mandatory for new agents for 6 (3 Contract Law/9AM - 3:50PM license activation. 3 RE Legal Issues)

$50.00

Jun 25 Seller Financing & the AAR Contract Richard KoevaryMon This course intends to awaken agents’ interest in seller financing and show them 3 Contract Law8AM -10:45AM how it can be a win-win solution for all parties. The AAR Residential Purchase Agreement $25.00

and the AAR Assumption/Carryback addendum are used as the basis for this coursewith extensive discussion on all aspects of the forms.

Jun 25 Real Estate Auction as a Sales Tool Tom StarrsMon An introduction for real estate licensees to the world of real estate auctions. 3 General11AM -1:45PM $25.00

Jun 25 Community Association Law Carolyn Goldschmidt, Esq.Mon Familiarize yourself with laws and principles that apply to condominiums, planned 3 RE Legal Issues2:30PM - 5:15 PM communities, cooperatives, and other real estate developments that are governed $25.00

by HOAs..

©2012 Hogan School of Real Estate 11

Jun 26 Surfing with the Commish: Effective Use of the ADRE Website Jim HoganTue Learn the different aspects of the ADRE website. While covering the Commissioner’s 3 Commissioner’s Standards8AM -10:45AM Rules, you will be able to navigate the department’s online service. Bring your laptop $25.00

and follow along. Your computer must have WIFI and a fully charged battery.A laptop is NOT required for class.

Jun 26 Risk Reduction: Avoiding E & O Claims Lisa RobinsonTue This course will enable the real estate professional to learn about the risks associated 3 Disclosure11AM - 1:45PM with short sales and REOs and the areas of exposure. $25.00

Jun 26 Fair Housing: Do’s & Don’ts Dan CarapellucciTue This class will assist licensees and their clients in dealing with today’s complex Fair 3 Fair Housing2:30PM - 5:15PM Housing issues by familiarization with Fair Housing laws and application. $25.00

Jun 26 Broker Management Clinic Richard KoevaryTue Designated brokers are required to take this course every two years and new broker 3 Commissioner’s Standards6PM - 8:50PM agents prior to license activation. $25.00

Jun 27 2011-2012 Code of Ethics with Case Studies Cheryl Terpening ABR, CRS, GRIWed Meet NAR’s 4-year requirement in this engaging class and gain 3 hours Commissioner’s 3 Commissioner’s Standards8AM - 10:45AM Standards CE as well. $25.00

Jun 27 Out of the Line of Fire: Avoiding Professional Liability Thomas StoopsWed Increase your knowledge of short sales and REOs so you can better communicate the 3 Agency Law11AM - 1:45PM risks involved in working with these properties. $25.00

Jun 28 Solving Short Sales & REO Contract Issues Cheryl Terpening ABR, CRS, GRIThu Increase your knowledge of short sales and REOs so you can better communicate the 3 Contract Law6PM - 8:50PM risks involved in working with these properties. $25.00

Jun 29 HAFA Short Sales, US Treasury, Fannie Mae & Freddie Mac Programs Jim HoganFri Extended through 2013, the Treasury’s HAFA program now includes rental properties 3 Contract Law8:30AM - 4:30PM and allows up to $8,500 for second loans, along with numerous other changes. 3 RE Legal Issues

Learn all the details. $99.00

May/June 2012

Take Charge of your Career -Get your Broker's License!

There are more benefits to becoming a Broker than owning a real estate company. If you have3 years as an active licensed sales person - now is a great time to take yourself to the next level.

Here are some reasons for obtaining your broker's license:• It is the most recognized real estate designation.• It is recognized as a specialty in the real estate industry.• You can advertise on your cards and marketing materials, Broker or Associate Broker and set yourself apart from the competition.• You want to be the specialist. The law of marketing is "if you can't be first in an area, be a specialist in the area."

Obtaining your broker's license can open many doors to your future.

JUNE 13TH - JULY 19THWednesday & Thursday

8:45am - 4:30pm

• The Hogan "Study Smart" workbook, which makes passing the test easy.• 3-hour BROKER MANAGEMENT CLINIC (required by ADRE to activate broker license)

• 5% discount for Hogan bookstore items• In class & take home quizzes to get you test ready.

• Six months to complete the course & the opportunity to take the course again at no extra charge.• Instructors who are very accessible for answering questions.

Tuition $625 and includes:

**


By Thomas A. StoopsFor years now, those of us who have been advising clients on

the anti-deficiency statutes, have had to guess the answer toseveral unanswered questions that were raised by the case ofBank One, Arizona v. Beauvais, 188 Ariz. 245, 934 P.2d 809 (App.1997). That case stated that the special statutory protections ofthe anti-deficiency statutes still applied to purchase moneysecurity interest which had been refinanced.

The problem was that the facts of the case were so narrow,and the holding of the court so limited, that it could be inter-preted in several ways and left many unresolved issues. Veryrecently, on March 20, 2012, the Court of Appeals, Division One,decided the case of Helvetica Servicing, Inc., a California corpora-tion fna CRM Venture Law, Inc. dba The Helvetica Group v. Michael S.Pasquan. The Court dealt with the scope of the anti-deficiencyprotections available to borrowers in a judicial foreclosurecontext. 1 The Court held that refinancing of a purchase moneyloan does not destroy purchase money status nor forfeit anydeficiency protection, but only to the extent that the proceedsfrom the refinancing transaction are disbursed in satisfaction ofthe underlying purchase money obligation. Another importantholding was that loan proceeds used to construct a qualifyingresidence (single or dual-family residence on 2.5 acres or less)merit anti-deficiency protection. The Court also clarified thatsums disbursed in a loan transaction for non-purchase moneypurposes may be traced, segregated, and recovered in adeficiency action.

The facts of the case are fairly complicated, but suffice it tosay that the lender, Helvetica, took the position that because ofthe refinancing of the original purchase money obligation, theborrower lost its protection against a deficiency judgment. Thelender filed a judicial foreclosure, citing the case of Baker v.Gardner, 160 Ariz. 98, 107, 770 P.2d 766, 775 (1989), for theproposition ("By choosing judicial foreclosure, the creditor canobtain a deficiency judgment in all casesexcept those dealing with purchase money collateral on theresidential property described in § 33-729(A)"). So, the mostimportant issue in the case was whether the Helvetica loan wasstill purchase money after the refinance. The Court of Appealsdid an extensive analysis of the anti-deficiency statutes, andnoted that the legislation was intended to "protect consumersfrom financial ruin and to eliminate hardships resulting toconsumers who, when purchasing a home, fail to realize theextent to which they are subjecting assets beside the home tothe legal process." The Court stated that anti-deficiency protec-tion reflects our legislative policy decision to place the risk ofinadequate security on the lenders rather than the borrowers.

The parties agreed that the original loan on the property,which was obtained to acquire the property, was purchasemoney. Helvetica, however, contended that by refinancing apurchase money loan, the borrower destroyed its purchasemoney status thus forfeiting the anti-deficiency protection. Theborrower, Michael S. Pasquan, argued that the loans taken outwere construction loans that were 1) purchase money in nature;and 2) the Helvetica loan refinanced an existing purchasemoney loan and was therefore a purchase money obligation.

Interestingly, both parties relied on the previous court's

Court of Appeals ClarifiesAnti-Deficiency Issues

decision in Bank One, Arizona v. Beauvais, which is probably asgood an indication as any of the varied interpretations whichthat case could be subject to. Helvetica claimed that there weresignificant differences between the facts of their case and theBank One case, in that in their case the original deed of trust tothe borrower was replaced by deeds of trust in favor of subse-quent lenders and that two different lenders were involved. TheCourt did not consider those distinctions significant with regardto the purchase money status of the loan. The Court held that achange in the lenders' identity does not, standing alone, alter thenature of the underlying purchase money debt.

The next important part of the case dealt with the Court'sdecision that construction loans which are used to build aresidence, are entitled to anti-deficiency protection. The Courtanalyzed the legislative policies behind the anti-deficiencystatutes and concluded that construing anti-deficiency protec-tion to apply to construction loans furthered those legislativepolicies. The Court noted that extending such protection willtend to discourage construction borrowing which is "unsound"because the construction is overvalued. The Court also indicatedthat the policy avoids further aggravation of a depressedeconomy. The Court specified that a construction loan qualifiesas a purchase money obligation if 1) the deed of trust securingthe loan covers the land and the dwelling constructed thereon;and 2) the loan proceeds were in fact used to construct aresidence that meets the size and use requirements set forth inA.R.S. § 33-729(A).

(Continued on Page 14)

1 The judicial foreclosure was utilized to circumvent additionalprotections applicable to foreclosures by trustee's sale.

State Bar of Arizona in 1976. He practices law in Real Estate,Commercial Transactions, and Litigations.

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Thomas Stoops graduated fromthe University of Arizona with aB.A. in 1973, and then with a J.D.in 1976. He was admitted to the

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(Continued from Page 12)The Court also dealt with how to treat any portion of the

refinance that was non-purchase money. The Court noted thatthe borrower, Pasquan's declaration admitted that not all of themoney borrowed was used for construction. The Court includedin this category sums for maintenance, utilities, marketing feesand penalties. The Court noted that there were three possibleoutcomes when a judicially foreclosed mortgage secures bothpurchase money and non-purchase money sums. First, theentire loan could be considered re-course and not subject tothe protections of the anti-deficiency statutes, or, second, theentire amount could receive anti-deficiency protection, or, third,the non-purchase money sums could be traced, segregated andincluded in a deficiency judgment. The Court chose the thirdalternative, stating, "It appears unnecessarily punitive andcontrary to the consumer-protection goals of Arizona's legisla-tion to convert an entire obligation into a recourse loan simplybecause it happens to include non-purchase money sums. Onthe other hand, it seems similarly inappropriate to shieldborrowers from deficiencies for loan disbursements unrelatedto the acquisition or construction of a qualifying residence.Extending anti-deficiency protection in such a manner couldencourage irresponsible borrowing and abdication of personalresponsibility for repaying legitimate debt." The Court went onto say "We therefore hold that, to the extent a judicially fore-closed mortgage includes both purchase money and non-purchase money sums, a lender may pursue a deficiencyjudgment for the latter amounts."

So, why is this decision so important? First, the details of the

COURT OF APPEALS CLARIFIES ANTI-DEFICIENCY ISSUESprotections of the anti-deficiency statutes in the currenteconomic environment are critical to borrower's calculation oftheir potential liability. What is clear from the case is that if aborrower refinanced a purchase money security interest and didborrower refinanced a purchase money security interest anddid not take out additional sums when he refinanced, that loanremains purchase money and cannot be the subject of adeficiency judgment, even where the lender goes to thetrouble of filing for a judicial foreclosure. Secondly, if the loanthat is taken out is used to construct qualified improvements,i.e., property that fits within the anti-deficiency statute protec-tions, then the construction loan is also considered purchasemoney. Finally, if the borrower in the refinance took outamounts in excess of the original purchase money loan and didnot use that excess for construction, then in the context of ajudicial foreclosure, the difference between the originalpurchase money loan and the additional sums borrowed duringrefinance, may be pursued.

As a practical matter, this issue is most likely to come upwhere a purchase money second (for instance, in an original80/20 financing) is refinanced and additional sums areborrowed. If the first deed of trust forecloses the second deedof trust, although still in part purchase money, will allow suit forthose amounts borrowed over and above the original loanamount.

While the Helvetica case still leaves several issues un-answered, it has greatly clarified the law with regard to therefinancing of a purchase money security interest and thenature of construction financing.

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