Archive for the 'Real Estate News' Category
Save money, time and your credit
September 6th, 2008 Categories: Real Estate News, San Diego County Community News
SAN DIEGO– I was recently surfing the net looking for something to perk my interest for my blog. I happened to go to the Department of Corporations website, not sure why, and what I found there is encouraging.
I am working on a market campaign, the pictured is a rough idea, reaching out to homeowners in trouble. The worst thing homeowners facing a money crunch can do is hope the problem goes away and it seems their biggest hurdle is reaching out for help. I realize it is hard to talk about these things, but you HAVE to and the sooner the better.
There is a huge window of opportunity right now to get either a loan modification or a short sale.The government, federal, state and local are all over lenders to do everything they can to help homeowners stay in their homes. Currently it is estimated that up to 60% of the homes banks have already foreclosed on are NOT on the market. The average monthly case load
for a full time loss mitigation manager in the state is approximately 150 files a month. Again there is a huge incentive for financial institutions to try to help as they are getting buried.
What the survey showed to my surprise is that approximately 20% of all loan workouts initiate in the state are granted loan modification or forbearance. This is GREAT news. Another 25% close escrow through foreclosure/REO sale or short sale. However, short sale closings are less than 10% of this group. This tells me homeowners have a GREAT chance of getting a loan modification if they initiate the process soon enough and have a real reason for the need.
Lastly, I am here to confidentially help you with your situation. We will work together to try to come to the best solution for you. I am working with a lender that can help with the loan modification process. Feel free to email me or call 760–415–3329.
| Currently No Comments »
San Diego’s free shade tree program in jeopardy
September 3rd, 2008 Categories: San Diego County Community News, San Diego county Real Estate News
SAN DIEGO– What does a New Zealand Christmas, a Chinese Flame and a London Plane have in common? They are three of the up to 19 varieties of shade trees available for free from the California Center for Sustainable Energy Cool Communities Shade Tree Program. This program is now in jeopardy due to a loss of funding.
Started in 2002, the shade tree program was designed to provide homeowners with free trees to plant strategically on their property. With proper placement, homeowners could save energy by using shade trees to help keep their homes cool in San Diego’s year round summers. An added benefit of course is that trees help beautify the homes and help our environment. Since the programs inception over 36,000 trees have been distributed.
Prior to 2006, the program had been funded by the California Public Utilities 
Commission with funds collected for the public purpose program charge. This charge is tied to to our SDGE based on natural gas usage. While the monies will still be collected, it is the shift in oversight of the funds to SDGE that has caused the program to loss its funding. SDGE is looking to use the funds for more immediate energy efficiency benefits.
The program is funded through 2008 and unless new funding is found, it will most likely be terminated then. Here’s your chance to beautify your home, neighborhood, save energy and help the environment all at once.. FOR FREE!!
| Currently No Comments »
I am a fortunate San Diego homeowner
August 30th, 2008 Categories: Real Estate News, San Diego county Real Estate News, Triathlon Club of San Diego Race Reports, What to do in San Diego
SAN DIEGO– Lately I have been feeling a bit down. Those that know me pretty well would say I am pretty optimistic guy and am there to help lift others out of their funk. Lately, I have been feeling a bit down.
See, I am a people person. An extrovert that feels most alive when around other sharing good times. This is why I love the Triathlon Club of San Diego so much. Last night for the first time in many years I attended the Friday night La Jolla Cove swim and absolutely had a BLAST!!! See I stubbornly did not want to deal with the hassle of I-5 south and La Jolla parking on a summer’s Friday evening. What a dope as I have been missing a great time. But that’s not why I have been feeling down.
I have been feeling down because I have not been working with as many clients. And while I would like to say these feelings are not at all from financial perspective, I REALLY miss working with some of the best clients most REALTORs will never be fortunate enough to have. The challenge of the financing. The hunt for the best home. The ups and downs of the negotiations and then finally the celebration of the ‘new home’. That is what I really miss. But yes, I will concede, a dwindling bank account does wreak havoc on one’s feeling of self worth and sense of security.
But this morning I woke up and I feel fortunate. See I have a home, only one, that is mine. I can do with it whatever I please and we gutted the place. The only thing in the home from when it was purchased is the framing, most of the drywall, some flooring and that’s about it. It did not need gutting, but I did. I love working with my hands and now own everything from a drywall scroll, to help install can lighting, to a table saw, for, well, 
all kinds of cool things. The best part, they are all used. However, despite this influx of both dollars and sweat equity, sometimes blood too, my home has lost about 28% of its value from the peak and I am at about break even on the purchase price.
But today I feel fortunate.
I am a 1099 independent contractor so the loan I used to buy our home was a stated income loan. Today, that loan is gone. It is now an excuse, a cause if you will, for the devastation to the housing market from the over exuberance of the closing Greenspan years. Because I write off everything I LEGALLY can as a businessman, my tax records would not support me if I tried to buy my home today using the resurrected FHA loan. Someone in my position would need roughly $75,000 to $110,000 to purchase in the $300,000 to $475,000 price range. Buying in that same price range for someone able to use FHA would require approximately $12,000 to $16,000, so there is hope for many!!!
The San Diego Union Tribune last Sunday had an article in their home section titled, “Raising the Bar”. It is a well written article about the changes in the mortgage market, but it has a troubling close.
“Tighter lending practices are making loans less likely to fail, but they’re also reducing the ability of the first time buyers to enter the market. That’s not necessarily a bad thing , said Jay Brinkman, an economist for the Mortgage Bankers Association.”– San Diego Union Tribune, 8/24/2008
I worked and am working with first home buyers and I find this statement disconcerting. I like to hear the economist representing the mortgage trace association saying,
“We are looking at ways to protect not only the housing market, but too also provide opportunities to the first time home buyer. We have always considered home ownership a huge part of the American dream and areas where home ownership is high, we see a strong sense of community.”– Brian Long, wishful thinking, 8/30/2008
But I feel fortunate today.
There is a great op-ed piece from the Los Angeles Times that looks at the positive side of the 2004–2007 home purchase and while I bought just prior to that it was a shot of sunshine. To anyone out there considering handing over the keys with the outlook that your home is an investment strategy that no longer ‘makes sense’, I would recommend printing this article and carrying it in your wallet. See you need to accept the fact that YOU ARE going to be buying home. Currently you just have the choice of whether it is yours or the landlords.
“Those of us who purchased nonspeculative property from 2004 to 2007 for the gratuitously self-indulgent purposes of raising a family and investing in our neighborhoods will ultimately have the last laugh.”– Los Anglese Times, 8/17/2008
So I feel fortunate today. (and I sure do hope this affirmation thing works!!!)
If I can help you realize your American dream or if, unfortunately, you need help do to financial hardship, call me at 760–415–3329 or email me.
| Currently No Comments »
San Diego home buyer suing over short sale
August 26th, 2008 Categories: Real Estate News, San Diego county Real Estate News
San Diego– First, San Diego had the Carlsbad couple that was suing their REALTOR over the purchase of their Aviara home. They felt that their agent did not represent their best interest and withheld information resulting in them paying too much for the home. It took about two hours for the jury to rule in favor of the real estate agent.
Ribsy Productions’ of Solana Beach, as reported by the North County Times, is suing Aurora Loan Services of Colorado for breaking a contract and other charges because the lender failed to provide an approval letter for the short sale. Aurora has a $587,000 loan on the Tucson home and the lawsuit states had accepted their $158,000 offer.
Though the lawsuit appears to be the first of its kind, legal experts said Monday that it will not set a precedent nor precipitate a rash of lawsuits against stubborn banks.
“I think it would only be fact-specific to this particular situation. Even if the defendant was found liable for not having acted in a more generous manner, I don’t see that as likely to affect any group of institutions or borrowers in the future,” said Russell Block, a professor of finance at San Diego State University.”– North County Times,8/26/20008
Short sales are very prevelant in todays market and easily make up, when combined with bank owned homes, the majority of homes currently being sold in San Diego’s current real estate market. This makes it almost 
impossible to avoid these types of transactions. With so many of these short sales coming on the market I now make sure to use a disclosure specific to short sales that states;
A.This agreement is contingent upon seller’s receipt of written consent from all existing secured lenders and lien holders(“Short Sale Lenders”)……
and then later;
C.Buyer and Seller understand that Short-Sale Lenders(i)are not obligated to give consent to a short-sale…. Buyer, Seller and Brokers do not have control over whether Short-Sale Lenders will consent to a short sale, or any act, omission or decision by any Short-Sale Lender in a short sale process.
If you are falling behind with your mortgage payments, you need to meet with someone you trust to provide you accurate information about your options and to guide you through the short sale process. Please feel free to contact me.
| Currently No Comments »
Carlsbad’s desalination plant unanimously approved
August 23rd, 2008 Categories: San Diego County Community News, San Diego county Real Estate News
CARLSBAD– The States Land Commission unanimously approved the desalination project slated to be built on the Encina power plant site in Carlsbad. This was the final regulatory approval the project needed in order to start construction next year with the goal of water production starting in 2011.
The plant, which will produce about 50 million gallons of freshwater from 200 million gallons, will be the largest desalination in the western hemisphere according to Reuters. The 50 million gallons equats to approximately 10% of the San Diego county region current water usage.
With the Carlsbad project receiving final approval, this helps clear the way for approval of approximately 20 other desalination project proposed for the California coast.
Earlier this week the first of what will probably be several legal challenges was rejected by the State Water Resources Control Board. The suit filed by the Surfrider Foundation said plans to minimize environmental damage the plant would cause were 
insufficient.
The Coastal Commission also this month approved a second plant to be built on the Monterey Peninsula to provide water for a development near Cannery Row. This plant is much smaller and will produce about 25,000 a day.
While I believe these projects are necessary and I support the idea, I fear not much good will actually come from them if they are tied to development such as the Monterey project. We need new water sources to help meet our current needs. This is evident by the state’s current drought situation.
“It is easy for Sacramento to put off dealing with the water infrastructure,” Schwarzenegger said. “But as we now see, there is no more time to waste, because nothing is more vital than to protect our economy, to protect our environment, and to protect our quality of life.” -CNN.com, June, 5, 2008
| Currently No Comments »
San Diego’s frozen equity lines
August 21st, 2008 Categories: Real Estate News, San Diego county Real Estate News
SAN DIEGO-The turn in the housing market has created a collapse in what some homeowners were hoping could be their emergency parachute; the home equity line.
The home equity line is defined as a method of borrowing in which a homeowner may borrow against home equity as needed using a checkbook or credit card. In there in lies the problem. We homeowners have lost our equity.
As a REALTOR, my income obliviously can fluctuate greatly. With the negative trend in the current economy, I at times have viewed my equity line as a security blanket that I could tap in to in a worst case scenario. About 2 months ago I received notice in the mail that my equity had been frozen which actually makes me one of the fortunate.
There are situations where the money is being spent over time in for a single event such as college tuition for children or remodeling projects. In these situations the homeowner signs a long term agreement makes a payment or two and then are notified that the equity line has been frozen which is completely legal.
“Theoretically, you could have people writing checks and spending money they should not be spending. You can appeal. The No. 1 priority is to make sure that loan doesn’t default.”
Mark Goldman, a real estate finance instructor at San Diego State University, said it makes no sense for banks to notify borrowers before they reduce their line of credit.
“Of course they aren’t going to call you up and say we’re taking a look at your loan,” he said. “The borrower, upon receiving that notice, would likely draw down the remaining available balance on the home-equity line.” – San Diego Union Tribune, 8/21/2008
While I believe in honesty in all situation, if you think you may have to tap into your equity line, I would access all the money at once. To offset some of the interest costs, open a CD with the funds. This way you know you have necessary funds.
While the linked article states to periodically check with your lender to find out what your available credit is, I am not sure that is the best advice. Sometimes getting your information to percolate to the top of the stack can only lead to bad things.
As stated by Mark Goldman, “It makes no sense for the bank to notify borrowers….”, I would follow the financial institution’s protocol with the reversal of the placement of the words bank and borrowers.
| Currently No Comments »
San Diego home sales see positive change
August 18th, 2008 Categories: Real Estate News
SAN DIEGO– Last week I wrote about an article in the North County Times that was headlined, “Area’s home sales jump”. There were dramatic 
changes, up to 525%, in some areas when comparing July ‘07 to July ‘08. There also were some not so bright changes, -56%, in Cardiff.
Well, the article got me thinking about how the areas where many of my clients focus on compare.
While I have clients in many areas of San Diego, many fall into these three areas. Those areas would be Carmel Valley, the area consisting of Clairemont/University City/Linda Vista and lastly the North Park area.
So I looked at the same time frame of July 2007 versus July 2008 and focused only on detached single family homes. And while these areas did well, they did not have the bounce of some areas in the north county. I believe this is primarily due to pricing and number of foreclosures. See the areas in north county that did the ‘best’ were all under $350,000 and have numerous foreclosures down into the $200,000s.
The one constant I did find was that all the areas showed a decrease in 
average square foot price. The areas around Clairemont and North Park also showed a decrease in home size. But while Carmel Valley showed a very slight decrease, roughly 2%, in square footage price the home size jumped from a 2833 sqft average to 3138 sqft.
Another figure that separated the Carmel Valley area was that the average price actually went up 7% from $1.036 mil to $1.145 mil. The average price in the North Park area was down approximately 29.4% and the Clairemont area was down 16%. However when you take into account the change in home size these decrease are tempered to 16.7% for North Park and 12%.
Lastly, that bounce in homes sold was greatest in North Park with an 
increase of 66% while the Clairemont saw the least of the three at 17%. This pattern, high increases in areas of with greater numbers of foreclosures, is consistent with the rest of the county.
If you would like more information about your area, I would be glad to provide you with any information you may need. I can be contacted here.
| Currently No Comments »
Carlsbad builder losing both affordable and luxury projects?
August 12th, 2008 Categories: Real Estate News, San Diego county Real Estate News
SAN DIEGO– This weekend, The North County Times reported that Carlsbad based Barrat America was close to losing its City Square project in Escondido. This once award winning project, that in August of 2007 was reported to be ‘debunking market trends’, was suppose to help anchor a revitalized and modern downtown.
City Square’s failure stems from Bank of America’s decision to freeze Barratt’s $125 million credit line, Pattinson(Barratt America CEO) said. He also questioned the bank’s motives, saying it is not interested in exploring workable solutions, such as extending the life of a loan.-North County Times, 8/10/2008
However, while in October of 2007, Barratt was announcing winning awards at one project, they apparently were not paying their sub-contractors. The NC Times article also reported that since November of 2007, 80 civil lawsuits have been filed against Barratt America and most of those have been filed by unpaid sub-contractors.
The luxury community additionally effected is Carlsbad’s Magnolia Estates. 
While looking through SANDICOR, San Diego’s MLS, for foreclosure activity, it seems as though the whole of Magnolia Estates is facing foreclosure proceedings and have lawsuits attached to them, presumably from the subcontractors looking to get paid.
Hopefully Barratt America, which has reportedly laid off 100 of its 130 employees, will be able to find new financing or work out a solution with Bank of America as neither city benefits from the blight, whether townhomes or luxury homes, decaying uninhabited.
| Currently No Comments »
Carlsbad desalination plant gets coastal commission approval
August 6th, 2008 Categories: Real Estate News, San Diego County Community News
SAN DIEGO– After a 10+ hour meeting today held at Oceanside city hall, the California coastal commission gave final approval to the desalination plant that was proposed to be built on the Encinas power plant site.
The plant will produce approximately 50 million gallons of freshwater a day from 100 million gallons of seawater. The plant will actually pump in excess of 300 million, what is is not sent through the reverse osmosis process is used to dilute the brine left over from the 
process.
To offset damage to marine life from the plant operation there will be 55.4 acre habitat restoration site to be built in two phases. One the size of Poseidon’s proposed 37 acres in the first two years and then an additional 18.4 acres added within the next five years.
With regard to a carbon offsets requirement, Poseidon stated that they will use as much solar power as possible. Also, there may be an actual carbon reduction if you take in to account that pumps, theoretically, will no longer be necessary to bring 50 million gallons of water to San Diego daily from northern California.
As usual we had the Sanders v Aguirre thing going on with Mayor Sanders on one side and the city attorney on the other. It just won’t be regional politics with out it.
“We must diversify our region’s water-supply portfolio,” said San Diego Mayor Jerry Sanders. “We cannot conserve our way out of the water crisis.”
San Diego City Attorney Mike Aguirre testified in opposition to the project, arguing that it was the wrong approach to solving the region’s water shortage.
“The primary way to gain new water is through reclamation,” he said, referring to the process by which waste water is converted back into drinking water.”– San Diego Union, 8/5/2008
The project now goes to the California State Lands commission which next meets August 22nd in Los Angeles. If approved then, expext construction on the project to start in mid 2009.
| Currently No Comments »
So you want to buy a foreclosure?
August 6th, 2008 Categories: Real Estate News, San Diego County Fixer of the Week, San Diego county Real Estate News
SAN DIEGO– Not long ago I wrote a post about the Clairemont area and why I see it as an area with great potential for first time home buyers and move up buyers.
I am working with a couple looking to buy their first home and we have spent time looking in the Clairemont. They prefer a home to townhome, need to be near the airport and hope to be close to the beach and their budget is in the $400–450 range. Clairemont perfect!!!
Last weekend, we looked at 9 homes that were all vacant. Additionally, 
they were all either short sales or REO/ bank owned. On the plus side we saw an awesome 4 bedroom that really was perfect. It had been thoughtfully updated throughout, is in a nice neighborhood of many equally updated homes and has a beautifully landscaped oversized corner lot with western exposure to bring in the ocean breezes that come up through the canyons. After a brief discussion, they put in an offer on this great home and while it is a short sale, the list agent and I feel pretty good about getting it approved.
On the negative we saw some beat up homes, but the home pictured takes the cake.
From the oil drum, yes it had old oil in it, that was hiding the gate that, when opened, revealed a pile of trash and personal belongings, to the syringes, my gut says diabetes not heroin addict, this place was a toxic dump.
Additionally, the owners(?) decided to do a little remodel before they left. convenience the interior wall was busted open. This allows for easy access 
to the hot water heater in case the pilot were to go out or you needed to adjust the water temperature. Thoughtful yes, but a little sloppy on the finish.
Also, knowing that the new owners would most likely want to update the kitchen as well as the bath, they started the demo work for them. Now in remodeling, demo work is often the least expensive portion and can actually be quite fun, so maybe this isn’t such a plus. But, if you look closely at the kitchen photo you will see that they also left some food and snacks just in 
case you get hungry while working on the place.
So here it is. A graphic example of what a foreclosure can be. The big unknown here is that if the past occupant has done this much damage, what damage may there be that is unseen?
There could be the concrete in the plumbing trick, the cut wiring in the 
attic or more.
Can you get a deal buying foreclosures? Absolutely and I will do everything in my power to help you get that deal. Most importantly however, is making sure that you are protected and given the best of advice whether it mean walking away or not. Call me, Brian Long at 760–415–3329 if you are ready to start your search.
Lastly, if the thought “why didn’t they clean this place up first” cross your mind, you and I would work well together.
| Currently No Comments »
