Archive for November, 2007
How not to start a weekend
November 30th, 2007 Categories: San Diego County Bike Rides
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Money making alternatives in the real estate market
November 30th, 2007 Categories: Real Estate News
The big players in the mortgage markets were buoyed by talk of another 
rate cut by Fed Chairman Bernanke and a potential agreement with the federal government that would delay mortgage rate adjustments for some homeowners. California Govenator, Arnold Schwarzenegger already has done this.
The stocks for Fannie Mae(FNM) and Freddie Mac(FRE) traded earlier this week at $28 and change and $22 and change respectively. Fannie closed today at $38.42 while Freddis closed at $35.07. That’s approximately a 35% gain and a 59% gain. Countrywide Financial(CFC), one of the nations largest lenders closed at $10.82 which is about 29% above it’s low this week.
Just a thought…..
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The foreclosure “walk away” factor
November 29th, 2007 Categories: Real Estate News, San Diego county Real Estate News
A friend, Julio Lopez, who happens to be a lender with Ranch and Coast Mortgage Group sent me his weekly piece yesterday and it was the inspiration behind this post.
See I thought people bought their primary residence to live in, make nice and enjoy and that if push came to shove, they would do whatever they could to stay in it.
However Julio spoke about what he called the “walk away”factor.
“borrower buys home, finances over 90% or more on an adjustable loan set to adjust in 2-3 years, market drops, loan adjusts, borrower walks away and property goes into foreclosure. You would think that borrower can’t make the payments, but what if they can? I have received over 20 calls of buyers that can afford the adjusted payment, but are willing to simply walk away because they say that they have lost $200,000 on their house and it is not worth it! Please, let’s be responsible adults here: when you buy real property, you know you are buying an asset that can depreciate. It hasn’t happened lately, but it can lose value. Lenders should enforce the law on borrowers that have a good paycheck and can afford the payments but simply walk away. A home is not an ATM, is a place to live and raise a family. If you made a mistake, please deal with the consequences; don’t let the rest of society have to carry the burden in the form of higher interest rates (from lenders to cover their losses and stay in business) and lower real estate prices (from letting their home go into foreclosure).”
It’s amazing to me that people would actually do this to preserve other “things” such as the Hummer, toy hauler, etc. The market will turn around and most homeowners will start seeing appreciation again. The house my parents bought in the mid 70’s was worth significantly less money in the mid ‘90s than the late 80’s but is now still approximately a 700% gain from their purchase price of $78,000.
If you are feeling the crunch, there are programs out there to try to help and coach you through this period. Here is one of the local resources, the San Diego Home Loan Counseling and Education Center.
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New site
November 29th, 2007 Categories: Real Estate News
I am in the process of getting my new blog dialed in so not everything is functioning yet, but I could not wait to share it and see what you think.
Thanks for stopping by …..Brian
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Countrywide’s $16 Billion Home Preservation Program Benefiting 80,000 Borrowers
November 27th, 2007 Categories: Real Estate News
Countrywide(CFC) has initiated a program to try to accomodate 
homeowners facing a rate adjustment that may make their payment out of reach.
Here are the program details. If you need help with your Coutrywide loan or have further questions, contact Raja Lahti at (858)759–5976
Overall Plan
- Countrywide Financial Corporation has announced a program to reach out to non-prime borrowers at risk of default.
- Countrywide will launch an outbound calling initiative to refinance or modify up to $16 billion of non-prime Countrywide loans for borrowers who are facing an adjustable-rate mortgage reset through the end of 2008.
- Countrywide will offer tailored solutions to its borrowers to proactively address the rising foreclosure rate.
- Dedicated teams of Countrywide specialists will contact customers who are current in their payments and approaching a rate reset, to ascertain the borrowers’ circumstances and advise them about refinance and home preservation options.
The Company’s Commitment
- Countrywide is committed to helping its customers sustain homeownership.
- Unprecedented times call for unprecedented remedies.
- We are determined to assist borrowers who have the willingness and ability to remain in their homes, but need a little help to do it.
- Countrywide believes that none of our non-prime borrowers who have demonstrated the ability to make payments should lose their home to foreclosure solely as a result of a rate reset.
- This is yet another step in our continuing effort to identify and improve existing programs that assist our customers.
The Plan Details
Countrywide’s new and enhanced programs include refinance, modification and addressing borrowers who currently are delinquent:
Refinance Program
§ The company has identified and will work to refinance approximately $10 billion of mortgages.
§ For this group, Countrywide will offer borrowers options to refinance into prime or FHA loans. For those with credit issues, Countrywide will offer Fannie Mae’s or Freddie Mac’s expanded criteria programs.
§ Countrywide has a strong track record of successfully transitioning borrowers from non-prime products to prime loans. Year-to-date, more than 31,000 borrowers have refinanced to prime fixed rate loans totaling more than $5 billion.
Modification Program
- Countrywide is working to identify and contact prime and non-prime borrowers who are current but unable to qualify for a refinance and are likely to have difficulty affording an upcoming reset.
- Countrywide will supplement its early notification letter to borrowers by calling no later than three months prior to the reset to determine their financial circumstances and develop affordable solutions.
- As a result of this initiative, through the end of 2008 Countrywide will successfully modify $4.0 billion in loans for approximately 20,000 borrowers in existing adjustable rate mortgages.
Delinquent Borrowers Due to a Reset
- Additionally, for non-prime borrowers who currently are delinquent and are experiencing financial difficulties as a result of a recent reset, Countrywide has implemented a simplified loan modification process.
- Countrywide is in the process of sending letters to these borrowers offering a pre-determined, pre-approved rate reduction.
- It is anticipated that 10,000 additional borrowers, representing $2.2 billion in loan balances, will receive modifications through this initiative by year-end.
Ongoing Home Preservation Efforts
So far this year, Countrywide’s existing home preservation efforts have helped more than 40,000 borrowers stay in their homes, including the completion of 20,000 loan modifications. Countrywide’s comprehensive efforts help borrowers who face financing difficulty. These efforts include:
§ 2,700 highly-trained home retention specialists who work with delinquent borrowers, providing payment alternatives to help them retain their homes.
§ Countrywide borrowers with an impending rate reset are sent a letter 180, 90 and 45 days prior to the rate increase to ensure that borrowers understand their options.
§ Outreach to distressed homeowners in their own communities by setting up face-to-face meetings through various means; hosting seminars around the country to help borrowers avoid foreclosure; participating in foreclosure prevention workshops, teaching borrowers about possible foreclosure scams, and offering loan workouts on-site.
§ Working with non-profit and community groups across the country to create grassroots efforts to contact and counsel distressed borrowers, particularly in communities that are experiencing unusually high foreclosure rates.
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Water more valuable than oil
November 18th, 2007 Categories: Real Estate News
“Oh father, we acknowledge our wastefulness,”.
As of this writing, the city of Atlanta, Georgia and it’s 5 million citizens have 64 days worth of water left. So bad has the problem become that the Governor, Sonny Perdue, led a prayer vigil on the steps of the capital asking for forgiveness for wastefulness and begging for a storm. “We have come together, very simply, for one reason and one reason only: To very reverently and respectfully pray up a storm.”
Carlsbad-The California Coastal Commission recently approved a permit for the construction of a desalination plant in Carlsbad adjacent to the Encina power plant. While unpopular with some environmental group, they have to know this will be a losing battle. The best strategy here is to make nice and become part of the process. I believe Surfrider Foundation is doing exactly that.
Surfrider Foundation has come out stating they are not opposed to desalination plants, but have issues with this particular system.
“Desalination is a hot topic with the current drought we face and less imported water available next year. Please remember that Surfirder is not against desalination in general, we just demand that it is done properly with the best technology available along with limited or no environmental impact. That is where the proposed desal plant in Carlsbad to be run by Poseidon Resources Corp. falls short. This project would be the largest and most damaging ocean desalination facility in the western hemisphere and should not move forward if we want to improve the health of our coastal areas and ocean water quality.”
They also refer to this same position stating “it does not utilize the “best technology available”, but I can not find anywhere where they educate the reader as to the what better technology being used is. They do have a great article on this topic and I strongly agree with a couple, but not limited to, these excerpts.
If the water produced from desal is used to reduce our reliance on imported water and more water then ends up being retained in water source areas to help sustain the environment there, then desal may produce a net environmental benefit. If, on the other hand, the water not taken from these rivers is diverted to other users and the river doesn’t benefit, desal may not result in a net environmental benefit. And if the desal plant fuels new growth along the coast rather than just replacing imported water, it may contribute to environmental degradation. This question of whether water is for “replacement” or “new source” is at the heart of the question of
“growth inducement.”
To me this is a no brainer. The new water should replace a source and the source should benefit. However, I will admit here and now, that I would be smoking crack if I thought this really will be the case. First, more building will take place because the thought that the Pacific Ocean is huge and we can always build another plant will permeate the governmental minds. Additionally the water coming out of the Colorado for our region will just finally go to Nevada to irrigate lawns in Las Vegas. Nevada has never taken their full allotment because we, Californians, were using it.
As with any social choice, the determination to implement desalination facilities should be compared with other alternatives. Some of the possible alternatives include improved water conservation and greater implementation of wastewater reclamation.
I know we are all probably aware of the purple landscape sprinkler and irrigation boxes that signify reclaimed water used to irrigate landscaping, but I am talking toilet to tap here. We have the technology to turn all those flushes back in to the very water that will create the next flush. Sound disgusting? Not to me. I will gladly trust the technology that transfuses blood in time of medical necessity and I will galdly trust the technology to help me save the San Diego region I love.
Believe it or not, this was first reported on by CNN in April of 1997.
If all goes according to plan, by the year 2001, the city’s sewage water will be treated and recycled right into the
drinking tap. “This project is the first of its kind in California,” said Ken Weinberg of the San Diego Water Authority. “We are taking reclaimed water, which is essentially treated waste water, and bringing it back to the point where it is suitable for drinking.”
Imagine how far along we would be if we could have just gotten that first of the morning flush out of our collective heads.
Estimates for the average daily water consumption per person in the US to be 80–100 gallons with the largest use on toilet flushing and bathing/hygiene. There will come a time when we will have to use this technology and the sooner the better.
Over the coming weeks, I will visit this discussion with more specific information, some ways to help conserve water and offers to consumers in the way of rebates to help with your conservation.
If it wasn’t for water, southern California would just be a desert.
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Rancho Bernardo fairway home for under 300K
November 16th, 2007 Categories: Real Estate News, San Diego County Fixer of the Week, San Diego county Real Estate News
Rancho Bernardo– This home is very conveniently located near the business district of Rancho 
Bernardo and is within 2 miles of I-15.
1100 square feet with 2 bedroom, 2 baths and an attached 2 car garage, you just can not go wrong.
Built in 1985, this home features 14 foot beamed ceiling in the living area 
along with a wood burning fireplace and a french door that leads out to the fairway fronted patio. There is a pony wall that seperates a dining area from the living area and a kitchen pass through to make this home perfect for entertaining.
This home needs moderate repairs and updating. However the floorplan and especially the location qualify this as the fixer of the week. For all you 
HGTV fanatics, get your tools and your DIY center credit card ready. Winters coming which will be the perfect time to be inside doing the work. You’ll be finished in time to enjoy the spring weather with friends, family and guests!!
Give me a call if there’s any interest.
Brian Long 760–415–3329
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A balanced life; equal parts work and play
November 12th, 2007 Categories: Real Estate News
This was going to be a busy. The first race of the triathlon club’s Runjunk.com duathlon series was Saturday morning and I was helping to put it on as it was in my backyard. The course was in and around the Calavera Hills preserve in Carlsbad with the transition start in the parking lot of Calavera Hills Middle School.
I was greeted with a beautiful sunrise as I went about setting the 2 mile run course inside the preserve and then hit the rode to mark the 13 mile bike course. The gates for the school opened about 7:25 and we already had athletes there waiting to get in. We got the transition set up and at 8:25 we had the course talk and off we went to the trail head to get the race started with about 70 athletes.
The run was one loop around the Lake Calavera, the original water source for the city of Carlsbad, and featured some nice single track trails, a water crossing, but was not too challenging for our newer members. Once through the first run loop it was off on the bikes. 
The bike course was approximately 13 miles and went through the neighborhoods of Ocean Hills in Oceanside and Shadowridge of Vista before rounding back in to the Calavera Hills neighborhood of Carlsbad. It was a great rolling hill bike course that featured only one left hand turn. I heard 121one athlete later say that the course required them to use every gear. A couple athletes got a little off course with the worst ending up all the way at the coast highway instead 
of making the turn at El Camino Real, but everyone seemed to love the course. To see more about the home pictured, click here.
The overall club winners were Matthew Dixon for the guys and Keri Heuberger. We are mixing up the way awards are given with the duathlon series, so we took the first three guys and ladies that came in after 1:20. The winners of the $25 dollar runjunk.com gift certificates were Andrew Gray, Mark Kenny and Eddie Astudillo for the guys and Michelle Wallace, Stacy Schlocker and Laura Grothe.
THE WORK
I had two clients, both buyers that I would be working with over the weekend. One Saturday after the race and one Sunday afternoon. Both are very similar in their physical requirements but one is focusing on the Carlsbad/ Oceanside area and the other in the Rancho Bernardo area. They are both looking for their first homes, are single and triathletes. So what we are looking at, are at least 2 bedroom 1.5 bath with a garage under $365,000. To see their searches, click here.
When looking at both areas we are seeing plenty of listings, but short sales and bank owned are the primary listings we are seeing and they’re a different breed than the standard purchase. 
First, a short sale is the sale of a property that is going to be purchased for less than what is owed to the bank(s). Several of the homes we viewed in both areas were over $100,000.00 short. As a buyer, these properties can be deceiving as the listed purchase price maybe $345,000, but what is really owed maybe $440,000. When making an offer, one needs to remember the bank will be the decision maker and it can take several weeks to hear their response. If there is a first and second loan held by different banks, this could even be longer. Lesson here is to be patient and continue to look. You do not want to miss an opportunity while waiting for the banks.
As real estate market conditions continue to develop, we may be seeing the bottom coming into view. A significant amount of the appreciation made in the last several years has been given back and with the rise in rental rate potential buyers will be comparing rental costs versus payments. Here is a great article written prior to the fires.
Lastly, if you are a w-2 employee or self employed and can prove your income, have some money to put down, at least 5%, the real estate world is your oyster. Fixed mortgage rates are very good and the federal government is looking in to raising the conforming loan limit which will really help our region
“The issue of raising limits on so-called “conforming” loans has been debated on Capitol Hill as the housing boom has lifted home prices, especially in high-cost markets. With mortgage lenders and investors tightening up on credit, home buyers looking to borrow more than $417,000 are finding it harder and more expensive to get a mortgage.” -By John W. Schoen,Senior Producer MSNBC, Thurs., Nov. 8, 2007
‘High cost’ market certainly refers to our area where the average home price is currently $531,000 versus a national average of $211,700. Let’s hope we see this come to fruiution. The difference in the interest rates between a conforming versus non-conforming could save home buyers several hundred dollars a month and tens of thousands over the life of the loan.
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Craig Zelent and Anita Flagg on the November Duathlon
November 10th, 2007 Categories: Real Estate News
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All great days begin at 4 in the morning
November 6th, 2007 Categories: San Diego County Bike Rides, Triathlon Club of San Diego Race Reports
It’s 4:08, feet hit the deck and my Saturday is beginning. Friend and client Bodo Schmidt and his very understanding girlfriend Cristine has opened his home to the tri club to watch the live webcast of the US Men’s Marathon trial taking place in New York. Start time 4:35 pst.
Bodo has an awesome home theater set up and the athletes were darn near life size. The webcast was awesome with mile split times and very good commentating. We had hopes up for local runners Josh Cox and Meb Keflezighi, but it became apparent fairly early that Josh didn’t have it as he struggled to try to bridge the cap on the first break of about 6 runners and just could not make it.
The sad news of the day came with the announcement of the death of Ryan Shay at about mile 5.5 of the race. Watching the webcast we could hear the siren and after about a minute there was an ambulance trailing the lead group. In puzzlement we were all looking at each other wondering what the heck they were doing on the course. It didn’t seem to disturb the athletes at all and after about a minute and half more the ambulance left the course. It wasn’t until later in the day that I heard the news. Here’s more on Ryan Shay.
The excitement started at about mile 17 with American half marathon record holder Ryan Hall putting the hurt on the lead group. There was not one runner that had the legs to go with him and his winning time of 2:09:02 is not indicative at all of his true time as he spent the mile and a half or so celebrating and high fiving as he about a 2 minute lead.
With the pajama party finishing about 7:00, I headed to the office to do some paperwork and then it was off to Poway to do the Second Annual TCSD Ramona Ramble.
Ramona was founded in 1886 after Amos Verlaque built a store and post office in 1883 on the wagon road to the mining town of Julian.
Ramona was known as the as the “Turkey Capital of the World” when turkey production flourished during the 1930s, and the industry was featured with popular annual Turkey Days celebrations. After the decline of the turkey, Ramona transitioned in to egg production and still is home to the 1,100,000 bird Pine Hills egg ranch which is the 5th largest in the state.
Today Ramona is facing growing development and the agriculture heritage is transitioning to grape production for wine. For information on the current real estate market, go here.
The ramble is an out and back ride with two starting points. One starting from Solana Beach which is about a 60 mile ride with 3000’ of climbing and one from Poway which makes the ride about 30 miles with 2500’ of climbing with the turn and carne asada lunch at Dos Picos Park. There is a 6 mile run up Iron Mountain sandwiched in the ride for those wanting the full monty.
At about 9:30, once the Solana group showed, we rolled out of the shopping center and headed for the climb up Scripps Poway Pkwy. The climb is about 1.6 miles long and starts at approximately 850 feet and climbs to 1500 and is just a touch more difficult than Torrey. After the climb we made the turn on to 67, rode a couple more miles and stopped at Iron Mountain for the runners to their run. Myself and Jessica did not bring running gear so we went off for more riding. Once arrived back at the trailhead there was a small group done with their run, so we headed on to Dos Picos park for some lunch.
Zarah, Denise and a friend of Zarah’s(apologies) had an awesome lunch of grilled veggies, carne and pollo asada, flour and corn tortillas, guacamole, salsa, rice, beans, sodas, water and some of Mike Larson’s homemade brew. While I did not have any, everyone that did gave it a solid two thumbs up. The park was full of old oaks and was empty. It was great to have lunch and just relax and chat as we laid in the sun.
After about an hour or so, it was back on the bikes, a nice tail wind and we were back in no time.
Living on the coast it was nice to ride on nice open shoulders.
I have become so accustom to dodging all the pedestrians in the bike lanes on Saturday mornings that I really appreciated just being able to ride.
I would like to thank Mark Kenny for organizing this and again to the surrogate moms that made sure we had plenty of lunch, bars and beverages!!
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