Disclosed for the 1st time, ‘damage points’ taken off for late payments

The greater transparency about FICO scores is important because American consumers’ ability to get credit rises and falls with the number. FICO, the company that pioneered credit scoring, assigns consumers a three-digit number from 300 to 850, depending on how well they handle credit.

Some of the more common “mistakes” and debt management tips…

As with other physical activities, when riders or hikers exceed what they perceive as their limitations, they realize they can go beyond their limitations in other parts of life, as well.

Mostly, though, mountain biking and hiking is about the simple pleasure of cruising or walking along a trail with the wind in your face. Hiking is experiencing the beauty of nature as well.

“For a lot of people, whenever they throw a leg over (a bike), it brings back a part of their childhood,” says Mike DiStefano, who works at Rage Cycles in Scottsdale. “You can forget your daily troubles when you’re on a bike.”

There are hundreds of miles of trails in and around the Valley, nearly all of which are suitable for mountain bikers and hikers. Some are perfect for beginners; many will challenge even the most experienced rider or walker.

We are so fortunate here that a lot of our areas have pretty much everything; South Mountain, the Phoenix Mountains Preserve, McDowell Mountain (Regional) Park and Pima and Dynamite roads, they’re all good. A new addition last year is the McDowell Mountain Preserve

The trails range from fairly short and fairly smooth, perfect for beginners or social walkers or riders, to long, rugged, technically difficult routes for experts.

Because there are trails all over the Valley, it’s easy to find a good trail no matter where you live. Here are some ideas.

McDowell Mountain Preserve

From the Gateway Access on Thompson Peak just north of Bell, riders and hikers (and equestrians!) can access a network of over 45 miles of trails within the McDowell Sonoran Preserve. The Gateway is the location individuals regardless of their physical condition or biking or hiking capability can go to explore and experience the magic of the Sonoran Desert. There is a ½ mile Bajada Interpretive Trail, perfect for strollers, wheelchairs and just meandering, looking at the 15 stations with information about everything about the desert, wildlife and plants.

There’s a great video profiling the award-winning trails!

There’s also the Lost Dog, Sunrise and Ringtail trails off Via Linda, east of Frank Lloyd Wright. See the map here.

Phoenix Mountains Preserve

“For great single tracks, the Phoenix Mountains Preserve is really hard to beat,” says Kurre, who works at the Arizona Hiking Shack in Phoenix. “It has well-built, well-designed trails. I think it’s world-class.”

A recommended trail is Trail 100 (formally known as the Christiansen Trail), especially the segment that runs from around Seventh Street to Seventh Avenue, for less-experienced riders or hikers. “For beginners, it’s a moderate trail. It’s wide and easy to navigate. But there are still some technically challenging sections to give beginners the flavor of being in the preserve.”

For intermediate riders and hikers, there’s the section of Trail 100 near the Dreamy Draw Recreation Area and Trail 220. It’s all single-track but with a little bit more elevation gain and climbing, with a few little more technical ride-ups (little rock steps that can be several inches to a foot or more high) on it. It’s a good, fun trail.

For advanced riders and hikers, there’s trails 8 and 8A as well as Trail 1A. Each entails more climbing and requires more skills. The trails are twisty and, in places, on the edge of substantial slopes.

There are also the “Bunny Hills,” from the end of 40th Street east to about 32nd Street. It has some dips and washes, but is a good place to take beginners.

Details: 602-262-7901, www.phoenix.gov/parks/hikemain.html

Papago Park

The easy-rolling trails here are a great place for novice mountain bikers and hikers to hone their skills. But even experienced riders and hikers can catch a thrill as they cruise along the gentle whoop-de-dos or work their way around Papago Butte on the “high route.” In addition to a close-up view of the park’s rock formations, riders and hikers can enjoy outstanding vistas of Camelback Mountain, Piestewa Peak and downtown Phoenix. Papago Park is considered a good place for beginners. Some people find that even though it doesn’t have any real hard ups, it has that loose pea gravel, which can be disconcerting for newbies.

Details: 602-261-8318, www.phoenix.gov/parks/hikepapa.html

McDowell Mountain Regional Park

Another recommendation is the Pemberton Trail, which makes a 15.3-mile loop, as a way for beginners to get the full experience of desert riding and hiking.

The great thing about it, and this is true of all the parks, is that you don’t have to commit to the whole thing. There are a lot of side trails (where) you can cut off and return to the starting point.

There’s the park’s Competitive Loop for intermediate riders and hikers. It has lots of ups, lots of downs. It’s really tight in places, loose in others. The area consists of three loops: a short loop, a technical loop and a long loop. Each has its own challenges.

Riders and hikers can enjoy outstanding views of the Four Peaks, Superstitions, Mazatzals and McDowell Mountains.

Details: 480-471-0173, www.maricopa.gov/parks/mcdowell

South Mountain Park

Parts of the Desert Classic Trail, which meanders across the southeastern part of the park, are good for beginners, but some parts are more difficult. Only advanced riders and hikers should consider the National Trail, which stretches nearly 16 miles across the park. It’s a unique trail. It has everything from big obstacles to switchbacks

Details: 602-534-6324, www.phoenix.gov/parks/hiksogud.html

Pima and Dynamite roads

This is the area near Pima and Dynamite roads, in far north Scottsdale, for casual outings. Although there are enough elements to make it interesting, there’s nothing terribly challenging. You’re up higher and you can see more of the Valley and the Superstitions. Because the area is on state trust land, you’ll need a permit to ride ($50 per year, $75 for a family permit).

Details: 602-364-2753, www.land.state.az.us (click on “Recreation Permits”).

SRP canals

The service roads that run alongside the Salt River Project canals that crisscross the Valley are great places for beginners to get the hang of cycling, walking or hiking. They also are good places for those who haven’t ridden or hiked for a while to get reacquainted with their bikes and themselves before heading out to more difficult trails. Not only are the roads relatively level, riders and hikers can cruise along side by side, chatting and taking in the surprisingly varied views.

Details: www.srpnet.com/water/canals/distances.aspx

Also, check out my Hiking and Biking website, with lots and lots of good information.

Nearly 10.7 million households had negative equity in their homes in the third quarter, according to First American CoreLogic, a real-estate information company based in Santa Ana, Calif.

These so-called underwater mortgages pose a roadblock to a housing recovery because the properties are more likely to fall into bank foreclosure and get dumped into an already saturated market. Economists from J.P. Morgan Chase & Co. said Monday they didn’t expect U.S. home …

Video

HOUSE HUNTING TIP: Regardless of how committed you are to buying, it’s not wise to bid on every short sale you come across that might work for you. Approximately one-third of the short-sale listings on the market don’t close, either because the lender won’t approve a realistic price, or because there are multiple liens secured against the property. Generally, if there are more than two liens, the likelihood of the short sale going through is slim.

Don’t look at a short-sale listing until your agent has talked with the listing agent to find how much ground work has been done. Does the listing agent have the sellers’ written authorization to negotiate on their behalf with the lender? Has the listing agent been in touch with a representative of the lender’s loss mitigation department? Have the sellers provided all the documents that will need to be submitted to the lender when an offer is accepted, such as a financial statement, hardship letter, bank statements, pay stubs, etc.

Stay away from short-sale listings where the listing agent doesn’t have the seller’s cooperation. For instance, the sellers may not have their paperwork in order to present to the lender. Understandably, it’s difficult for most people to face losing their home and good credit. But, without the sellers’ cooperation, the sale won’t go through.

THE CLOSING: Short sales require a lot of patience, a cooperative effort between the buyers, sellers and agents involved, and frequent communication to keep everyone involved in the process up-to-date.

Dian Hymer, a real estate broker with more than 30 years’ experience, is a nationally syndicated real estate columnist and author of “House Hunting: The Take-Along Workbook for Home Buyers” and “Starting Out, The Complete Home Buyer’s Guide.”

While we wait, though, there’s a gallery on my hiking page, that profiles many of the great trails we have and the views you’ll experience when hiking, biking or strolling.

Check them out at the Arizona Hiking Gallery.

Colorful displays are already blooming along the preserve’s two dozen maintained trails with yellow carpets of brittle bush contrasting with the fiery red blossoms of Ocotillo.

Still to come are Lupine, Crimson Hedgehog, Staghorn Cholla, Mexican Gold Poppy and other varieties of wildflowers that call Scottsdale’s Sonoran Preserve home. Check out some of their photos and wildlife here.

And for a preview of what’s to come, check out last spring’s displays on my blog, Springtime in the Desert.

It is easier than ever to explore the preserve and take in wildflower beauty. Nine trailheads are open, connecting to a trail system totaling 60 miles. Three trails opened last May – Tom’s Thumb, East End and Lookout.

The Preserve Gateway, designed to be the main access into the preserve, also opened in May. It’s a great launching point to explore wildflowers and includes an all-access paved loop trail with displays describing the plants, animals and natural history of the Sonoran Desert. The Gateway is located at 18333 N. Thompson Peak Road, between Legacy Boulevard and Bell Road.

The McDowell Sonoran Conservancy, a non-profit group that works in partnership with the city on the completion and sustainability of the preserve, is operating a “Wildflower Watch” this spring. It will feature reports from dozens of volunteer Conservancy stewards who are out and about in the preserve reporting on the best wildflower locations. To get their daily insights, visit the Conservancy’s website.

Scheri, a real estate appraiser, had sized up a three-bedroom, two-bath house in Santa Ana, Calif., for $30,000 less than what the buyers offered to pay. A typical deal-killer for a seller.

The agent urged the lender to force Scheri to consider several other properties that could back up the original $310,000 sale price. Then he tried good old-fashioned guilt, telling Scheri her appraisal was going to ruin the buyers’ shot at the American Dream.

“That’s what he laid on me,” Scheri recalled. “And I said, ‘Don’t you care they could be potentially spending $30,000 too much for a house?”

Across the country, agents and homebuilders are complaining too many appraisals are coming in low, scuttling deals.

The National Association of Realtors says nearly one in four of its members has reported clients losing a sale due to botched appraisals. The National Association of Home Builders, meanwhile, said low appraisals were sinking a quarter of all new home sales and argues it’s not fair to compare distressed properties to brand-new homes.

And that gets to the heart of the problem.

Roughly 40% of all home sales this year were foreclosures or short sales, meaning the property sold for less than the mortgage. In some markets, like Las Vegas and Phoenix, they’ve hit more than 50%.

Appraisers determine the value of a property by looking at recent sales of comparable homes. They take an apples-to-apples approach, excluding or making adjustments for certain features, such as a swimming pool. And generally, a foreclosure isn’t used as a comparison for a standard sale.

But in some areas, appraisers like Scheri contend they are only sizing up homes according to the reality of the market, though they concede its becoming increasingly harder pinpoint what a home is worth.

Home prices in many large metro areas, including Los Angeles and San Diego, hit bottom earlier this year and are recovering, data last week showed. Yet there are many neighborhoods across the country where foreclosures and other financially distressed sales are still rising.

“It used to be a very infrequent thing that you did an appraisal and the value wasn’t supported,” says Scheri, who is based in San Diego. “Now, it’s more common than not.”

So, if you’re trying to sell your home in a neighborhood where foreclosures and short sales are predominant, an appraiser could determine your home is actually worth less than what some buyers may be willing to pay.

Part of the problem, critics contend, is that many real estate appraisers are now hired under new industry rules. Designed to limit conflicts of interest that can bias an appraisal, the rules bar mortgage brokers from ordering appraisals themselves, forcing them to do so through a mortgage lender.

Lenders may order appraisals through in-house staff or appraisers hired by outside firms known as appraisal-management companies. But neither may talk to the appraisers about the value of the property they’re evaluating.

The result, however, can mean that low-cost appraisers are hired from outside the area and don’t have the local knowledge to find homes that can be a better benchmark for regular homes.

Chris Heller, agent-owner of Keller Williams Realty in northern San Diego, recently had the sale of a home nearly botched for the second time because of a low appraisal.

The three-bedroom, two-bath house in the Poway suburb of San Diego was appraised for $55,000 less than what the buyer agreed to pay. The seller wasn’t willing to drop the price down to $400,000, but knocked off $20,000 when the buyer agreed to come up with $35,000 in cash.

“The seller is taking less because of the appraisal,” Heller said, noting that almost all of the comparable homes used to gauge the property’s value were distressed sales.

Still, the buyer is paying a premium not to have to deal with the risks involved in buying a foreclosed home or a short sale, which can take several months to close.

So, should distressed homes sales be compared with other homes? Is one inherently worth more than the other?

A new analysis of foreclosure and non-foreclosure sales by Zillow.com found that even when most of the market is made up of bank-owned homes, non-foreclosures sell for as much as 30 percent more. Another study by Harvard’s Joint Center for Housing Studies came up with a similar conclusion.

In Las Vegas, which has one of the highest foreclosure rates in the nation, the median sale price for bank-owned homes sold in September was about 23% less than other types of properties, according to the Zillow study.

“There are two markets, two very distinct markets,” said Zillow economist Stan Humphries.

That doesn’t mean foreclosures don’t weigh down the value of nearby homes, although there’s loud disagreement on how much.

The Joint Center for Housing Studies examined home sales over 20 years in Massachusetts and found that a foreclosure within less than 100 yards of a home lowers the price of that home by 1%.

So it appears that in neighborhoods with high foreclosure rates, values for all homes are being pulled lower than in areas where there are few or none. That means you can live in one area of Las Vegas and values can be down twice as much as they are in another neighborhood just a few miles away.

When it comes to appraisals, that leaves a lot of room for interpretation.

Jan. 4, 2010 Associated Press

Motorola site brings in $18.5 million

The prime 152-acre Motorola site on Price Road in Chandler has sold for $18.5 million in cash and is poised to provide the area with worldwide recognition, city officials say.

There is interest from renewable-energy companies, including solar, as well as firms in semiconductors and nanotechnology. The last Motorola employees on the site moved out in September.

“It could be a true employment hub for Chandler,” said Chris Mackay, the city’s director of economic development.

She envisions what she described as a world-class business park to integrate business and technology.

“The Motorola campus is one of the identified innovation zones for Chandler, and it allows us the opportunity to get away from only large-campus users,” she said. “We can put smaller, knowledge-related users there.”

Karl James is managing director of the company that bought the site, Austin-based Capital Commercial Investments. He said there is great interest from national and international companies.

“We certainly see (the site) as a great opportunity for the state of Arizona,” James said.

“We think there certainly will be some good things to come from it.”

The site could be leased to one large user, he said, but he didn’t preclude several smaller tenants.

“As far as what direction, we are still exploring all the options,” he said. “It’s a very open question at this point. We don’t have any vision for it now other than to say we want to look at all of our options.”

The zoning along the Price Road Corridor requires at least 15 acres for any one company.

The campus, between Germann and Queen Creek roads, contains a two-story, 512,000-square-foot building that had been used for offices and research.

Goodyear will house a new factory for he world’s second-largest producer of solar panels, Chinese solar-panel maker Suntech Power Holdings Co., which development officials said paves the way for more factories and raises hope for a more diversified Arizona job market.

At least 54 renewable-energy companies are looking at the region for possible factory sites, said Barry Broome, president and CEO of the Greater Phoenix Economic Council, which helped lure Suntech to the state.

He said he is hopeful Arizona sees at least three more factory announcements before April and at least six for the year, which would help the state recover from the current recession and housing crisis.

“We need to be aggressive about this, you have to execute,” Broome said, citing state tax incentives created last year that helped attract Suntech and other companies to Arizona.

Suntech’s decision to open Goodyear plant will bring 75 immediate jobs

Among the attractions that brought Suntech to Arizona were tax breaks passed by the Legislature and signed by the governor last year. Those incentives offer renewable-energy equipment factories income-tax credits and lower property taxes based on how much they invest in their factories and what they pay their workers.

Suntech could get $1 million to $1.5 million in state tax breaks based on its plans, Broome said, although the investment is not large enough to trigger reduced property taxes, and Goodyear will provide Suntech with a $500,000 credit for job training.

Suntech also could get a $2.1 million federal tax credit from its investment in the Arizona facility. Five other companies could get those federal tax credits for new or expanded factories in Arizona, according to a recent report from the Department of Energy.

Some of the new companies scoping out factory sites are suppliers for Suntech and Tower Automotive, a Michigan company that recently announced plans for a $50 million solar-component factory in the area, Broome said.

“These are the elite companies in the industry,” he added. “This gives real legitimacy to Arizona’s position in the solar marketplace.”

Suntech will spend $10 million to $15 million setting up an assembly factory for solar panels in an existing building in Goodyear, Goodyear Crossing, 3801 S. Cotton Lane, that it will lease, officials said.

The factory initially will employ 75 people and turn out enough solar panels a year to power about 7,500 houses at once. Officials want to expand the plant over time to four times that capacity, employing 250 people.

“Jobs, we all love the sound of that song,” Gov. Jan Brewer said when announcing the factory’s location at a forum sponsored by AZ4Solar in Phoenix.

The Arizona Suntech factory should be in production by September, allowing the company to serve the Southwest with panels made in the U.S., said Steven Chan, chief strategy officer.

“It has always been a trend to have manufacturing go east to Asia from the U.S.,” Chan said. “There is demand for products made in Arizona, made in the U.S.”

Chan said Suntech will strive to match the cost efficiencies of its factories in China because while customers want a domestically produced product, price is more important to U.S. consumers.

“U.S. customers are not willing to pay more for something made in the U.S.,” he said.

The new factory will be a small part of the company’s operations and not process silicon wafers into silicon solar cells, as Suntech does in China. Workers will assemble the premade cells with glass and frames into the panels used on roofs and in large fields for power plants.

In 2008, Suntech’s existing factories produced 498 megawatts of solar panels, most of which were sold to Europe.

The Arizona facility will have an initial capacity of 30 megawatts, with 120 megawatts of capacity if and when it expands.

One megawatt of power capacity is enough to supply about 250 homes at once.

Suntech spent more than two years on a nationwide site search, surveying more than 28 properties in Greater Phoenix, Chan said.

Jan. 28, 2010 The Arizona Republic

Arizona’s first wind farm creating power for Valley

Federal dignitaries tout cleaner energy, creation of green jobs

Northern Arizona dedicated the state’s first wind farm, which sends power to Salt River Project customers in the Valley when the wind blows on the turbines between Holbrook and Snowflake.

The Dry Lake Wind Power Project has 30 wind turbines standing more than 400 feet tall, catching every breeze of 7 mph or greater and turning it into pollution-free electricity.

The project employed about 200 construction workers in the past year and will have about 10 full-time workers.

In a steady wind, the turbines can generate enough power for more than 15,000 homes.

Dry Lake will offset some of the power SRP gets from natural-gas-burning power plants.

An analysis from SRP shows that, while the Dry Lake region is windy and the plant will provide thousands of megawatt hours to the utility each year

“The message this plant sends to Arizonans is as important as the power it generates,” SRP General Manager Richard Silverman said.

“Today isn’t only about a power plant, it’s about a more sustainable future for our customers and all of Arizona.”

Bob Abbey, director of the Bureau of Land Management, said the agency supports more wind projects.

“As the steward of more land than any other federal agency, the BLM is proud to support the development of this clean-energy source, one that will help reduce our dependency on foreign oil in uncertain times,” he said.

The Dry Lake farm sits on private, state and BLM land.

Although 15 miles of roads were cut across the landscape to connect the towers, cattle still graze under the turbines, and few people live within sight of the towers.

The BLM will earn about $87,255 a year from the project. The state has a deal tied to the energy generated by the turbines on its land that could earn $4 million during the 50-year arrangement.

With such lucrative deals possible, landowners across the region are hoping to attract many more turbines to the high desert.

Iberdrola Renewables, a Spanish company with U.S. headquarters in Oregon, built the $100 million project and plans 209 more turbines at the site, which will stretch 15 miles across Navajo County.

And right next door, SkyMall founder Robert Worsley, who opened a biomass power plant nearby, has proposed building hundreds more wind turbines and enough solar generators to match the maximum power output of Palo Verde Nuclear Generating Station.

Other wind farms have been proposed from the Navajo Reservation and near Flagstaff in the north, to Bisbee in southern Arizona, and to Kingman on the state’s western line.