Did you know that the State of Tennessee made some changes to their real estate redemption periods under certain circumstances that have made the buying of real estate at tax sales much more attractive? Did you know that Fannie Mae has changed some of their regulations that has opened a loop hole (only under certain circumstances) that allows real estate investors to have financing on more than 10 properties? What steps do you take to buy a real estate property at the Shelby County tax sale?

Welcome to Real Estate Mortgage Shoppe! In today’s episode we will talk about real estate trends across the nation but specifically in our home town of Memphis, TN. We will talk about some popular financing programs that follow the trends. (For more info on the loan program details, contact me at 901 482-0354 or jo@ ) You will also get a step-by-step on how to buy real estate at a bargain at the Shelby County Tax Sale. We will discuss how the newly regulated redemption rights law works.

Good morning, Memphis! Good morning to our friends across the 50 states. Thank you for hanging out with us again on Real Estate Mortgage Shoppe. I’m your host, Jo Garner, mortgage loan officer and you can connect with me at www.JoGarner.com If you have questions or comments call the studio while we are live March 26th, 2016 at (901) 535-9732 or outside the Memphis area (800) 474-9732 or just email me directly at jo@ . This episode of Real Estate Mortgage Shoppe is sponsored by the Memphis Mortgage Office at Evolve Bank and Trust located at 6070 Poplar Ave Memphis, TN.

Today we are focusing on HITTING THE HOT TOPICS SURROUNDING SHELBY COUNTY TN REAL ESTATE—OUR home town. We are going to cover 1. some real estate trends we are seeing in the Memphis and surrounding area and some popular financing programs included in those trends. Our special guest is David Lenoir, our Shelby County Trustee. David is going to talk about some Tennessee laws regarding real estate redemption rights that have made buying real estate property at the Tax Sale much more attractive to investors. 3. Stay tuned and you’re going to find out how to buy your own bargain at one of these tax sales.

David Lenoir, it’s great having you back in the studio to talk with our listeners. You have had over 20 years experience in the financial industry and were elected Shelby County Trustee in 2010. You’ve got some great programs and initiatives working for Shelby County that we will talk about over the next few minutes together. And, you’ve won some awards locally and nationally for a job well-done. David Lenoir, please take a moment and tell our listeners a little bit about yourself and some of the great things going on in the Trustee’s office.

(Jo) As I have said many times on Real Estate Mortgage Shoppe—besides being a radio talk show host, I am working every day as an active mortgage loan officer. Every day I look forward to talking with customers and clients on the telephone, over email or in person. I want to work with you PERSONALLY. But you have to call me personally. If you are not talking with me or my very experienced assistant, Susan Belew, you aren’t working with me. I want to work with you so call me personally at (901) 482-0354 (901) 482-0354 or connect with me at www.JoGarner.com You can also find me at Evolve Bank and Trust. Tell me your comfort level on a house payment and how much you are comfortable paying down on a home. Getting your loan approved on the refinance terms you want or the home purchase loan you want is my job. Besides providing you with some financing comparisons, I watch the mortgage market. This week March 21st 2016 to March 25th, 2016 we saw rates bump up a little but they are still lower than they have been earlier this year. The hot topics driving the mortgage rates are stocks and the price of oil which affects the bond market which, in turn, affects the mortgage rates. Bond markets were closed on Good Friday and closed early on Thursday so rates ended the week with the conventional 30 year fixed rate around 3.75% to 3.875% no points depending on various factors. The conventional 15 year fixed rate came in around 3% to 3.25%. The government FHA , Veteran Loans, USDA Rural Housing loans came in a little lower than the conventional loans in most cases except on the shorter term 15 year rates. Ask me about some special portfolio jumbo loans and 100% loans for borrowers with good credit scores and who meet special qualifying criteria.

(Jo) Today, since we are talking about real estate trends, I can say from a recent survey I have been conducting with active realtors in the Memphis Metropolitan Statistical Area that Millennials (ages 20 yrs old to 35 years old ) have gotten tired of rising rents and they are out buying their own homes and locking in low, fixed rate mortgage rates. These borrowers still have some student loan debt and I am personally working with them and helping them get to the right people to get these loans consolidated and the minimum payments low enough so they can qualify for the homes they want. On the other end of the spectrum we are seeing older borrowers selling their current homes and downsizing to enjoy a simpler life. I have some great solutions for these borrowers that are much more cost-effective than the old bridge loan when they have to buy the new house before they can sell the old one. Ask me about it. Let’s talk directly while we are live in the studio (901) 535-9732 or (800) 474-9732 or call me directly after this show at (901) 482-0354 or let’s connect at www.JoGarner.com

(Jo) Other trends we are seeing are homeowners calling to refinance their loans and combine the first mortgage and a second mortgage and, on some cases, the combine some other variable high interest rate debt too. They eliminate the risk of the variable rate debt by combining it all into one fixed rate mortgage. In many cases, with the hundreds of dollars they save on overall monthly debt when they refinance, they use the savings to pay extra and get rid of the mortgage SOONER. The main reason they are refinancing and combining the debt is to get rid of the adjustable rate debt that could go higher quicker if and when the Federal Reserve starts to hike their rate. Other reasons people are refinancing and combining debts into the one refinance loan, is because they need to lower substantially their overall debt payments each month. A couple of callers this week wanted to refinance to a lower rate, combine the 1st and 2nd mortgage and get enough cash out to do several thousand dollars worth of repairs and renovations to their home while fixed mortgage rates are still mostly in the 3’s . Let’s talk about what YOU want to do. LET’S MAKE YOUR PLAN, WORK YOUR PLAN. IF THE DEAL WORKS FOR YOU TODAY, DO IT TODAY.

But speaking of deals, David Lenoir, let’s talk a little more about some of the exciting things you have going on at the Shelby County Trustee’s office.

2nd segment after 9:15 break: It’s time for the Look Back Memphis Trivia Contest. The Look Back Memphis Trivia Contest is brought to you by notable Memphis historian, Jimmy Ogle. Jimmy offers free historic walking tours in downtown Memphis in the spring and fall. To find out more, ask Jimmy at www.JimmyOgle.com . Our Look Back Memphis Trivia Contest is sponsored by John and Jennifer Lawhon of Lawhon Landscape (901) 754-7474 the Lawhon’s can help you plan your landscaping if you have a BIG, BIG project or a smaller project . The Lawhons are giving away a $25 gift card to the first person with the correct trivia answer. If you know the answer to our trivia question, call us at 901 535 WREC 901 535-9732.
Garner # 73 03/25/16

Question: I was once known as Pea Ridge. Who am I?
Hint: I was founded along the Cherokee Trace.
Hint: I was the site of a renowned “Utopian Community” in the 1800s.
Hint: I was incorporated in 1841 and even has a small fort during the Civil War..
Final Hint: I even changed my name during World War One!
Answer: Germantown. Germantown was founded along the Cherokee Trace on a ridge between the Wolf River and Nonconnah Creek, about 16 miles east of the Mississippi River. The first settlers arrived in Germantown about 1825. Between 1825 and 1830, Miss Frances Wright established Nashoba Plantation, a utopian community intended to emancipate slaves. By 1830, the first store was opened as more settlers moved into the area. The community became known as Pea Ridge in 1833, town lots were laid out in 1834 by surveyor N. T. German and the name was changed to Germantown in 1836, reflecting the presence of German families. The town was incorporated in 1841. During WW1, the name was changed to Nashoba, as sentiment towards anything “German” was not good.

During the twentieth century, the community derived its strength through involvement of citizens, as evidenced in the churches, garden clubs and civic organizations. The Poplar Pike Improvement Association and the Germantown Civic Club played vital roles in the physical and social development of the community. In the last half of the century, the population grew from about 400 to more than 40,000. Over several decades, elected and civic leadership, with support of citizens, worked proactively to control suburban growth through development regulations, aesthetic controls and strategic planning efforts.
The result is a premier residential environment with high quality City services that make Germantown an attractive, healthy, safe and wholesome place to live, work, worship and play.
Jimmy Ogle gives free outdoor walking tours on the sidewalks and parks in Downtown Memphis during the Spring and Autumn of each year, with the next tour being the Bridge Walk on the Memphis & Arkansas Bridge on at 2pm on Sunday, April 24; the Fairgrounds Walking Tour at 2pm on Sunday, March 20 (assemble at the Coliseum). The D’Army Bailey County Courthouse Tour (indoors): Third Thursday each month at 12:00 noon – the next being Thursday, April 21.
Go to jimmyogle.com for the 2016 Spring Season schedule and locations.

⦁ There has been some significant changes to the real estate redemption laws in Tennessee that is making real estate investors much more interested in buying property at the TAX SALES. For our listeners, would you explain a little bit about the changes in the redemption rules and why these changes make buying real estate at the Tax Sales so much more attractive?
[notes from Shelby County Trustee’s website]  Redemption Period
Properties purchased in a tax sale may be redeemed by the previous owner, the heirs of the previous owner, or lien holders and assignees.  An order confirming the tax sale is entered into the court records within 45 business days of the sale date. Once the order is complete, the property is eligible for redemption. If the IRS holds a lien on the property, the right of redemption is 120 days from the date of the sale (28 U.S.C. §2410(b)).

** Effective January 2016**
The Tennessee Legislature passed changes to the redemption law. The new law allows shorter redemption period based on the number of years a property has been delinquent.
Years of Delinquency Redemption Period
5 years or less 1 year
5-7 years 180 days
8 years or more 90 days
Vacant and abandoned* 30 days

*To be considered vacant and abandoned, a property must be inspected at least three times over a two-month period at different times of day.

How to Redeem Tax Sale Property
To redeem property from tax sale, you must contact the Chancery Court Clerk’s Office and perform the necessary steps required by Tennessee statute.  These steps include the filing of a Petition to Redeem Property from Tax Sale and making payment according to the final bid price of the property plus interest.

The Trustee’s office does not take part in the redemption procedure. We strongly recommend the use of an attorney to assure all necessary documents are filed in a timely manner and that the redemption process is completed as required by law.

What if Someone Redeems the Property I Purchased?
The court will return the bid amount along with 12% interest per year on your bid amount (interest is calculate
d from the date of sale until the Petition to Redeem Tax Sale Property is filed with the Court). All requests for reimbursement of maintenance and/or improvement costs incurred by the purchaser are approved at the discretion of the Court. You are encouraged to seek the advice of an independent attorney before making any improvements to the property and before filing any petition requesting reimbursement for incurred costs.

For a listing of properties under redemption, please refer to Properties Under Redemption page.

More Information
For additional information, please contact the Shelby County Trustee.

** Employees or relatives of employees of the Shelby County Trustee’s Office are not eligible to bid on properties in tax sale.  

⦁ When are the Tax Sales and how do they work for investors wanting to purchase these properties?
[notes from an earlier email]          In the second of four innovative online tax sale auctions, Shelby County Government will offer over 400 residential, commercial and vacant properties at www.CivicSource.com, beginning Tuesday, April 5th at 8:00 a.m. CST through Thursday, April 7th at 8:00 p.m. CST.
         Shelby County’s first online tax sale was a success with a greater number of bidders than previous tax sales and a higher percentage of properties going to buyers.
o   The sale ran Jan. 19-21 with 438 properties listed; 81 of them, or 18.5 percent, sold.
o   The number of bidders more than doubled, from 30 or 40 to about 100.
o   All but 18 of the 81 properties were purchased by investors within Shelby County.
o   The sales generated $1.2 million.
         For the second auction, the 400 available properties are randomly grouped into four batches, with each batch having a different closing time. This will allow investors to redeploy unused capital throughout the sale.
         Each batch will start at the same time, Tuesday, April 5th at 8 a.m. and have the following end times:
o   Batch 1 – Ends Wednesday, April 6th at 6 p.m.
o   Batch 2 – Ends Wednesday, April 6th at 8 p.m.
o   Batch 3 – Ends Thursday, April 7th at 6 p.m.
o   Batch 4 – Ends Thursday, April 7th at 8 p.m.
         The opening bid for a property includes delinquent city and county taxes, accrued interest and penalty charges, court costs, attorney fees, as well as service and title costs. The sale is open to the public. Free registration and a list of available properties are available now at www.CivicSource.com.
         The first sale ran Jan. 19-21 with 438 properties listed; 81 of them, or 18.5 percent, sold. That compares to previous sales where about 10 percent of properties sold.
         Unsold properties are purchased by the county and go into the Land Bank.
         The number of bidders more than doubled, from 30 or 40 to about 100. All but 18 of the 81 properties were purchased by investors within Shelby County.
Tax Sale Updates The last sale ran Jan. 19-21 with 438 properties listed; 81 of them, or 18.5 percent, sold.
The number of bidders more than doubled, from 30 or 40 to about 100. All but 18 of the 81 properties were purchased by investors within Shelby County.
In addition to details about the Tax Sale below, David can also discuss our Project HOME program which helps delinquent taxpayers through financial education and the opportunity to enter into payment plans. Brochure attached.

⦁ As Shelby County Trustee, you have a vision for Shelby County. Please talk about some of the ideas and initiatives your office has put in place to improve operational efficiency, collect delinquent taxes, and stabilize the tax base.

⦁ Issues with blight in some our neighborhoods have been covered frequently in the media. Can you take a moment and talk about the Blight Elimination Steering Committee and how this group is working hard to develop solutions to address blight, including your data driven approach?

[notes from earlier email] Blight issues: David is a member of the Blight Elimination Steering Committee. This group is working hard to develop solutions to address blight, including David’s data driven approach.

⦁ How would you describe your responsibilities as Shelby County Trustee?



⦁ Talk about some of the real estate trends you are seeing in the Memphis Shelby County area.

A couple of weeks ago I started calling several different realtors who work in the Memphis Metropolitan Statistical Area to see what they have been seeing in their own businesses over the last 6 to 8 months. What’s hot, what’s not.
Since each realtor had a differing target markets, their answers to my questions varied. [notes from research- The National Association of Realtors reported in 2014 that among buyers of primary residences, 33 percent were first-timers. Of those new home buyers, Millennials made up 32 percent, this was an increase from 28 percent two years ago.
Low mortgage rates making house payments lower in some cases than the going rent rates, coupled with lower home costs have making it possible for younger buyers to enter the housing market. In 2015, 66.5 percent of new and existing homes sold between January and the end of March were attainable to families with the U.S. median income of $65,800. The national median home price went down from $215,000 in the fourth quarter to $210,000 in the first quarter. But at same time, average mortgage interest fell from 4.29 percent to 4.03 percent creating an offset to keep the housing affordable. ]

In general, over the last 6 to 8 months it is clear that the millennial generation is getting tired of rents continuing to rise, and are actively out buying homes—not just downtown and midtown, but in East Memphis and the suburbs and in other counties too. The millennial generation are those 20 to 35 years old. ( If you are a first-time homebuyer, let’s talk. There are several special loan programs available to you with very low down payments and low monthly payments. If you have hit a wall because of student loan debt, I just may have some solutions for you. Call me while we are live at 901 535-9732 or call me after this broadcast directly at 901 482-0354 901 482-0354 or connect with me at www.JoGarner.com )

The other segment seeing a lot of activity or the older homeowners who now want to sell their current homes and downsize to enjoy a simpler life. (If you are in this category, and you are worried about getting the timing right on the sale of your current home and the purchase of your new home, call me. I have numerous financing solutions that can take the worry out of the transition for you.)

Real estate investors are actively out building their real estate portfolios. A large percentage buying the lower priced homes are paying cash.(If you are a real estate investor, we definitely need to talk. I have some good news for you on recent regulation changes from Fannie Mae and Freddie Mac and I can show you how you can qualify for more than the 10 max financed properties when you are acquiring rental property.)

Newcomers to the Memphis area are interested in buying in an area close to the schools their children will attend and close to their place of employment. (Getting connected with an experienced realtor with a good reputation can save hours of research time and can give you a peace of mind about where you choose to buy your home. ) If you are medical doctor or dentist moving here for your residency or other type practice, talk with me about a special 100% portfolio jumbo or doctor loan with rates in the 3’s and no private mortgage insurance required.

Trending challenges in the Memphis MSA real estate market is the shortage of inventory. It is a seller’s market. But it is a great market for buyers too because of the low interest rates giving homebuyers that unique opportunity to lock in a 30 year fixed rate that keeps the house payment low for a VERY long time.

⦁ What are some of the special financing products that you offer first-time homebuyers?
Welcome Home
Shelby County Down Payment Assistance
I assist many first-time homebuyers with getting their student loans consolidated and getting the payments low enough so they can qualify for the home they want
I also help these buyers find the money they need to make the deal work for them.

⦁ What are some solutions for homebuyers who need to sell their current home but can’t sell it right away and yet they need to close on the new home right away?
Heloc on old home instead of Bridge loan to save on rate and costs
ARM on the new loan if the amount of equity is large that they will pay down on the new loan once the old home sells.
Borrowing against (not pulling out) money from 401k
Cash value in life insurance

⦁ What are some products you use for real estate investors buying property to rent to tenants?
Most real estate investors, if they plan on keeping the home for over 3 to 5 years, will use the 30 year fixed rate mortgage to keep their mortgage payments low and their positive cash flow high. They can always choose to pay extra on the principal and get the loan paid off early, but having the low 30 year mortgage payment makes it easier for them to qualify for other rental property purchases later. If they were locked into a high 15 year note on their mortgages, it would make it difficult to qualify on the income-to-debt ratios on future purchases.

(Jo offers tip of the week.)

ANNOUNCEMENTS: Announcements: This Wednesday March 30th, 2016, 9A-10A CT Join other business people to engage in the Mastermind Principle: based on the book Think and Grow Rich by Napoleon Hill at Talk Shoppe. Talk Shoppe offers networking and education to anyone interested in real estate or business every Wednesday 9A-10A at University of Phoenix in Memphis 65 Germantown Court 1st floor across from Germantown Parkway from the Ag Center. For more about Talk Shoppe, go to www.TalkShoppe.com
Talk Shoppe events are free for the next two months thanks to our supporters such as Eric Meyers, chef for Eat At Eric’s Grill and Catering. He is booking catering for graduation parties. Give Eric a call in his food truck 901 277-4428. Thank you to John Keller, investment advisor with Edward Jones for helping organize special engagement exercises during Talk Shoppe’s Mastermind sessions. You can reach John to talk about your investments at (901) 569-5009


For the past 2 weeks I have been calling several active real estate agents in the Memphis Shelby County market and asking them, over the last 6 to 8 months, where they are getting the most activity on real estate sales and where they are experiencing the most challenges.

We will be covering some other trends on Real Estate Mortgage Shoppe over the next few weeks.
Thank you to the following realtors who participated in the survey
Pam Beal, Crye-Leike, Inc 901 647-2101
Kathy Newsom, Benchmark at Southwind Realtors 901 337-6905
Geoffrey Ongayu, Realty One First National 901 315-8956
Cheryl Fleming, Crye-Leike, Inc 901 652-9773
And more to come-
QUOTE CORNER: “When I got outta’ High School I was driving a truck. I was just a poor boy from Memphis” Elvis Presley

Transitional Music: 9:15 am “Proud Mary”  by Tina Turner; 9:30 am “The Memphis Train” Rufus Thomas Stax Records; 9:45 AM “Memphis In The Meantime”  by John Hiatt and the Goners; “Memphis” by Johnny Rivers for the Look Back Memphis Trivia Contest
Don Hutson, author of Selling Value Memphis, TN
Kim Miller, ARCH MI, Nashville, TN
Lynn and Troy McDonald, Erin McDonald Insurance Agency Bartlett, TN


David C. Lenoir is a lifelong Memphian who had a 20-year career in the financial services industry before being elected Shelby County Trustee in 2010. He was re-elected to a second term in August 2014. As Trustee, Mr. Lenoir has focused on operational efficiency, proactive collection of delinquent taxes, and efforts to stabilize the tax base.  
As the county’s banker, Mr. Lenoir has worked to put delinquent properties back on the tax rolls and increase tax collections. He has worked diligently to provide taxpayers with financial tools and access by creating strong initiatives to address the needs of the community. Programs such as Project H.O.M.E., Home for the Holidays, On My Own and Bank On Memphis are centered around financial literacy and access to traditional banks.
In 2014, the Trustee accepted the Pinnacle Achievement Award from the National Association of State Treasurers for the proactive financial literacy outreach by the Trustee’s Office. In 2012, his accomplishments were recognized when he was named Trustee of the Year for West Tennessee by the Tennessee County Trustee Association (TCTA).
In 2011, Tennessee Governor Bill Haslam asked Mr. Lenoir to serve with the Delta Leadership Institute to help address problems specific to the Delta Region with solutions that incorporate community and collaboration.
On the state level, he is past president of the West Tennessee Trustees Association (WTTA) and is the incoming president of TCTA.
Mr. Lenoir is a graduate of the University of Alabama’s Culverhouse School of Accountancy where he received his B.S. in accounting. He enjoys hunting and fishing with his two sons, is an avid reader, amateur apiarist (beekeeper) and gardener. Mr. Lenoir and his wife Shannon live on a small family farm in east Shelby County.


www.JoGarner.com (901) 482 0354 jo@ twitter @jogarner NMLS: 757308
Jo describes her job description: “As a mortgage loan officer, my job is to give my client the benefits they want from their financing terms– listening to my client and determine what’s of the most value to THEM– What is their comfort level on a house payment, how much are they comfortable paying down, what type of financing do they need to get the house they want to buy or refinance. Different clients have different priorities in life—some are buying their first home with very little down payment funds. Some are recovering from medical challenges, divorces or preparing to send children to college and some are embarking on a long term goal of buying properties to build rental income. Whatever their personal priorities are, my job is to put together a mortgage with comfortable terms that will help them achieve their goals.”

Jo Garner is a mortgage officer with extensive knowledge in tailoring mortgages to her customers who are refinancing or purchasing homes all over the country. She offers conventional, FHA, VA or other loan programs for refinancing and purchases.

Jo can help you look at rent vs buy, when it makes sense to refinance, how to get the best deal on your home purchase financing.

Jo Garner has been in the real estate/financing business for over 20 years.  She got her start in Portland, Maine where she first began her real estate career. She received her real estate education from the University of Southern Maine  and was personally mentored in San Diego, California  by Robert G. Allen, author of Nothing Down, Creating Wealth and The Challenge.
On moving back to West Tennessee in 1987, she went into business buying and selling discounted owner-financed notes secured on real estate.  In 1990 Jo went to work for a residential mortgage company and has been a mortgage loan officer for over 20 years.  Her goal is to offer excellent, affordable service to her customers, tailoring the loan programs to the specific needs of her clients.  
In addition to her work in the mortgage field, Jo Garner  is the primary sponsor and founder of Talk Shoppe in Memphis. www.TalkShoppe.com She was also the editor of Power Shoppe, a free weekly e-zine designed for real estate professionals and others indirectly connected to the real estate industry and currently publishes on her blog www.JoGarner.com .