Trustee, Texas, Virginia discussed on 24 Hour News
Morning and welcome back in the studio with Jerry sunt of VIP mortgage and my friends mo- Kathy and Kevin from Richmond Virginia. And we were just talking before the show about, you know, the Harrison and the markets and a lot of us. I I'd see more. I see Mohan Kathy more than I seen my neighbors. And they live in Richmond just here last week. And and he's back again. And then we we go to conferences all the time. We're going to be in New Orleans and a conference in a couple of weeks. And so we get around and we travel Moen Kathy went to Greece this summer with us. And and so it it's it's kind of like a family reunion. When everybody gets to go to these conferences. What's interesting is is all across the country. I'm in Kellyanne porters on her way here. She's from Dallas, Texas, Kevin's dropped from trauma, Indianapolis, Indiana. The stories the same everywhere. Last year of all the metropolitan statistical areas in the United States only one metropolitan area in the country had a decrease in real estate values, and that was Bridgeport Connecticut, and the reason for that is not by statute. But by judge Bridgeport, Connecticut has the longest foreclosure process in the United States. It takes five years to foreclose on a home. So last year was twenty seventeen. Well, guess what? Five years in waiting. That's twenty twelve they were experiencing what we all have in twenty twelve and they kept kicking the can down the road instead of taking care of business and moving on long with the life. I'm Kelly from Texas. She's from the Dallas Texas area on Texas has the fastest foreclosure rate in United States, forty two days. Basically, you're twenty one days late. You get filed on twenty one days later and house in yours. I mean that's going to be set for that. Yep. And you know, what I own quite a few real estate notes in Texas, and that's one of the best things about them. And and I I don't have any problem with people not paying. I mean, you've heard the saying you drive down the road don't mess with Texas. Yeah. That's right. No kidding. It's pretty very conservative rules that way. It's people tend to pay their bills. Exactly, they know they have to there's not there's not an area an Aramark in there, and you know, for Zona most know, it's like a thirty day late, you file and in ninety days later on the home. So it's like a four month process. It's it's still very very. Sure. And and you know, it's also by a trustee. So when you haven't trust a trustee in pretty much, everything west of the Missouri or the Mississippi River is a trustee sale state except for one St. Jerry, you know, what it is. Nevada. Exactly, exactly. So everything else. I'm west of the Mississippi is is a trustee sales state. What that means is at the time, you purchase that home a person usually an attorney is set up as the trustee, and they are just to follow the direction of the note. And it says specifically what the process is. And what the days are and what the late fees are. And there's just there's no ambiguity in there. Where a judge. You know is able to apply for this case or that case, you know, variance, and and and opinion on a trustee is not able to do that. They follow the letter of the law, just specifically moas Virginia a trustee or judicial or both. What we got both. But mostly trustee. Okay. And what is the case where it would go to judge some states have have. So we actually have words a recision a writer precision. So if it goes to foreclosure, and so they they they don't have they used to have the way to be able to bring it back in certain cases. But that's that's almost gone. Okay. And you know, I've had that happen. Actually, we bought some notes several years ago that back in two thousand twelve in Indiana, and in Milwaukee, Wisconsin and also in South Dakota and all of them had redemption, period. Right. So so basically after the foreclosure sale, it's like great give me my house back. Right. And I mean, we bought them knowing that the people have defaulted and moved off, and you know, we still had to go through the foreclosure process, and and, you know, those notes we bought them at thirty cents on the dollar. So, you know, most of the notes were around eighty thousand dollars and some of them we paid as little as the one in Indiana, we paid forty eight hundred dollars. Wow. Horan eighty thousand dollar note. And then, you know, it sounds like a really good thing. But you know, the taxes and some of those places are just crazy. We ended up selling a house in Milwaukee. That hadn't been lived in for eight years of basement had three feet of water in it. For years. It was ice skating rink in the wintertime, and in a nasty swimming pool in the summertime, and then took so long to get that house vacant. Wow, ended up selling it for seventeen thousand dollars. But the taxes on that property, we they were thirty seven hundred dollars a year for a woman worth seventeen thousand dollars. That's a twenty percent tax rate. Wow. And and we had twenty twelve twenty thirteen twenty fourteen twenty fifteen twenty sixteen twenty seventeen so we like paid twice as much in taxes as as we ended up selling the house for so those were not good experiences. But that is actually what drove me to do performing loans that that we do right here in our in our local market is, you know, I experienced the the bad side of the business, and it's like, okay, I don't ever want to go there again, you know, buying someone else's loan. That isn't isn't performing isn't isn't a job that I want to take on. I wonder know, finance somebody and have them bring me cookies and brownies and burritos or. I I mean tamales tamales at closing a lot. But it's you know, these people are hugging you and thanking you and just so thankful and they put down twenty thirty thousand dollars cash. I mean, how long did it take them to save that those and of all the people that we've done that with? I haven't had anybody come back and and not pay me. I mean, they're they're not only paying their current there ahead of schedule. They're you know, they're doing extremely well. So of course, the economy's been very very good. And and you know, that that could change possibly, but I just think when you get people to put that much skin in the game and you make their payment cheaper than rent. And that's when I was kind of leading up to is our rents here. More are and Kevin jump in. He got stay high yet, but are rents here for. Range between nine hundred and twelve hundred I guess real close on top of the college for a three bedroom. Home you'd pay more like fourteen fifteen sixteen hundred dollars depending upon close. It is the college. What's a three bedroom? Brent ruined not out in Virginia. I think that's. Yeah. Eleven twelve hundred. Okay. Okay. And then how about taxes our our property taxes? Pretty low. We're pretty low. I think a one hundred thousand dollar house. Let's just say on average will probably be about six hundred dollars a year. Oh, wow. Seven hundred dollars a year in taxes. And that's you know, that's in line with Maricopa versus Tucson Pima county. We're we're higher than that. That's usually one percent. And then take a little bit off of that for Tucson. But when you go to oral valley, it's you know at about twenty five percent on top of the wind percent. And you know, I used to have a real estate agent that worked for me, and he went to work for the for the tax assessor. And then he used to tell me every year, go down and contest your taxes. And we're so understaffed they just like role, and and and they don't even like like you don't have to prove much if you're listening. Try it. I guess it's it's worth it. I just, you know, basically believe that the assessment they give me as fair, and and and I pay my taxes, but that's interesting. So any other differences what about insurance now, you guys are on the east coast? You have some natural disaster threat where we're sitting here in the middle of the desert. We don't too much. Yeah. In some areas, we have of course, flood insurance issues that we have to deal with the closer you get to certain areas like Louisa, right? We gotta carry earthquake insurance. Now. Yeah. But for the most part insurance, affordable, we we can expect for a three bedroom. Like, I said a hundred thousand dollar house insurance to be probably about five hundred dollars a year. Okay. Which is in line with that's about one around here. That's good. So see that interesting very similar markets. You have this perception that the east coast is going to be far more expensive than it is here. Yeah. I mean, it's the big difference when it comes to insurance. I think nationally it's just when you have flood insurance or earthquake insurance or whatever it is. If you have that extra add on that insurance companies require because of the area, that's where it gets expensive and southern Arizona. There are pockets of Tucson believe it or not that we are in flood zones where you have to carry flood insurance. And I always tell people be prepared that you know, that could add seven hundred thousand dollars a year to your insurance premium insurance that adds up pretty quick. And it doesn't rain that often. But when it does I mean, you got all these these roofs that are shedding water that goes into the pave streets that shed water, and it just all channels into into the washes, and and it can get very fast very quick a few weeks ago. We were talking about Albert. Where you know Alber non row, which is a street that runs north north south here in Tucson and years ago. It would just it would become like ripper, there's pictures of people going down and in canoes and I've seen garbage cans, you know, floating down in big monsoon storms. We're coming up on a break. I want to jump into here, but property values what what's the expectation in in Virginia this year, as far as what do you think the appreciation would would we're we're steadily probably between two and three percent is what we're experiencing an appreciation. Okay. That's very sustainable. Right. We're in a balanced market for the most part unlike other areas where they go when the bottom fell out really goes down hard. But we didn't experience that a ton. You know, we're pretty balanced because of our jobs and steady work that's there on a regular basis. So it we stay flattened out when the bottom fell out. But otherwise we were now experiencing two to three percent increases. Well, we Arizona pretty much runs on construction. And during the downturn. I mean, it just died in our home prices here. There were some neighborhoods went down by sixty percent. And and average across the market was probably right about forty five percent. And the median home price went from twenty seven down to one seventeen hundred and ten thousand dollar drop. And and you know, we just now are getting close up to we're still twelve thousand below where it was in two thousand and seven, and that's a really good thing. I mean in two thousand seven was too high in certain markets like Phoenix and Las Vegas are changing their they're giving incentives to companies were industries to move there to keep it balanced. So that they don't go through the boom bust times if you can get healthcare in there, and so forth there, you know there. There's demand year in and year out, regardless of fluctuations in values. All right. We'll be right back after the news. This is Tucson Home Solutions..