Archive for the 'San Diego county Real Estate News' Category
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!!
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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.
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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.
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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
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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.
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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.
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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.
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Hey San Diego homeowners, why is this man smiling?
August 5th, 2008 Categories: Real Estate News, San Diego county Real Estate News
SAN DIEGO– With the mortgage industry taking the brunt of the blame for the current housing and credit crisis, the investigations have started.
It was reported today in several newspapers that the CEO of Freddie Mac was warned several times that the company was taking on ‘bad’ debt by lowering its standards, yet felt he had no choice in the matter.
A former employee who sat in on some of these meetings testified that CEO, Richard Syron, stated “ we couldn’t afford to say no to anyone.”– San Diego Union Tribune, 8/5/2008.
What really stood out the most for me though is Syron’s quote from Syron in response to this statement.
“If I had better foresight, maybe I cold have improved things a little bit. But frankly, if I had perfect foresight I would never have taken this job in the first place.”
This from a man who will make just shy of $20,000,000 for his performance in 2007 alone while the company lost almost half of it’s value. But for all the misery this crazy low paying job has caused Mr. Syron, he most likely will not turning in a resignation anytime soon.
If Syron resigns or is fired with cause, he will owe the company $1.25 million. But if he is fired without cause, he will pocket $19.1 million.-CNN Money.com,July 18, 2008: 4:27 PM EDT
But remember this is only half of the Freddie/ Fannie team. It will be interesting to see how CEO Daniel Mudd fairs through these investigations.
What does this mean to you and me? I guess not a darn thing other than to show that we really do have more in common with the very wealthy and powerful than I thought. Going to work can be a real drag!!
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Nothing extreme about this foreclosure
July 28th, 2008 Categories: Real Estate News, San Diego County Fixer of the Week, San Diego county Real Estate News
Georgia– Back in 2005, 1800 volunteers and ABC’s Extreme Home Makeover, built the Harper family of Georgia a 4 bedroom 5000+ square foot mansion free of charge. The company, Beazer Construction, also paid off the families mortgage and gave them $100,000.
Well the mansion must not have been enough for the Harpers or the 100k, because the Harpers are now facing foreclosure. Besides the 100K the Harpers took out to separate new loans for $125,000 and $450,000. So their ‘income’ in 3.5 years was a mere $625,000 and now they’re broke.
A foreclosure notice appeared last Friday, a $450,000 second mortgage they took out less than 15 months ago was in default…. Lake City mayor Willie Oswalt was among the 1,800 volunteers helping “Extreme Makeover: Home Edition” build the Harper’s new home 3 ½ years ago. Beazer Homes of Atlanta was the main sponsor. The mayor said he is baffled.
“Beazer gave them $100,000 cash, paid their mortgage off and they still can’t make it,” said Oswalt. Harper told Channel 2
they invested the loan proceeds in a construction business and the business hasn’t been good. She didn’t say how much of the money is left.
“What’s going to happen is instead of keep paying my mortgage, I’m going to take my money and not pay my mortgage because I’m being harassed,” said Harper.– GeorgiaBankrutcyblog.com
As bad as this is, they really did nothing different then millions of homeowners across the nation. House as ATM. Additionally this is not the first home built by the show that has been foreclosed on.
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How the housing bill may effect San Diego
July 28th, 2008 Categories: Real Estate News, San Diego County Community News, San Diego County Fixer of the Week, San Diego county Real Estate News
SAN DIEGO– Well congress pulled a weekend session and passed the housing bill intended to buoy our sinking housing market. President Bush has already indicated he would in turn sign this in to law. I have been asked by quite a few people what I thought about the bill over the last several weeks, but have withheld any real opinion until I could read more about it and digest that information. So here are my thoughts.
Probably the real impact of the bill nationwide will be the portion that allows the FHA to insure and help refinance, into fixed rate, some 400,000 loans for homeowners that are in some part of the foreclosure process. Two things here however. The homeowners would have to show that they can indeed afford the payment and the banks would have to accept any loss. The problem I see with this is that most of these homeowners will not be able to afford the new payment especially if 
they got loans based on stated income or had a change in their ‘economic’ picture such as disability, loss of job, taking on more consumer debt, etc. Additionally, there is a clause in the bill that protects lenders from investor lawsuits over loss revenue caused from restructuring loans. This is probably the most beneficial to the consumer group as a whole of this portion.
The 3.9 billion earmarked for buying and or maintaining/ rehabing foreclosed homes will go to companies with government ties so I really don’t see this as being very beneficial to the populous. This will benefit some companies and quite honestly I just see opportunity for abuse. Hopefully the money will go to housing non profits that have a strong history of benefiting the community. Did you read about the Iraq prison in todays paper?
Now the 15 billion earmarked for housing tax breaks will help quite a few with 
a tax credit equal to 10% of the purchase price up to $7500. In order to earn this credit, the home purchase must fall between April 9, 2008 and July 1, 2009. However, from what I have been able to find this is a credit for low income and first time buyers only. Additionally, this credit will have to be paid back in equal payments over 15 years. So this really is 0% loan. Also, as with most everything associated with tax filings there are income restrictions.
What I believe will have the greatest impact on San Diego’s real estate 
market is the provision that makes the increase in the loan amount the FHA can insure permanent. Currently the FHA can insure loans up to $625,000 in high cost market areas. This amount used to be $417,000 and was set to revert back at the end of the year. Why this is important to us, is that the borrower can get a more favorable because of the assurance to cover the loan from the FHA.
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