Archive for May, 2009
Carlsbad bike lane closure
May 31st, 2009 Categories: San Diego County Bike Rides, San Diego County Community News, Triathlon Club of San Diego Race Reports, What to do in San Diego
Carlsbad– Saw this on my ride and thought I would send it out. There is not a sign in the north bound lanes so I think they are just FINALLY fixing the bike lane from Poinsettia to
Ponto Beach.
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$200 million more to California’s new home tax credit?
May 24th, 2009 Categories: Real Estate News, San Diego County Community News, San Diego county Real Estate News
SAN DIEGO– Our state, THE GOLDEN STATE is going broke people. With the defeat of all but one proposition at the special elections, 9 billion dollars has been added to our predicted budget deficit. The new total for this year is in excess on $21 billion dollars and I think is is safe to say rosy economic news isn’t around the corner.
Seemingly unconcerned with this fact, there has been a bill introduced in the state legislator that will increase the state’s new homes tax credit from $100 million to $300 million.
Currently the state is offering a tax credit of $10,000 paid over three years to anyone who purchases an existing new home or one scheduled to be built until the approved $100 million fund runs out. The program has been more successful than first thought and while legislators thought this money could potentially last until the summer of 2010, it looks as though the fund will run out of money in the next several months. Thus, the proposal to add the $200 million. As of May 20 there have been 6816 applications granted totaling in excess of $65 million in less than 3 months.
Now I understand that the construction and building industries have a wide reaching impact on our state’s economy. There are jobs, property taxes, permit and building fees, suppliers of goods, sales staff and more.
“This is critically important at this point in time in our economy,” said Assemblywoman Anna Caballero, D-Salinas, one of the bill sponsors.
She said for every new home built, there’s a $16,000 benefit in fees and property taxes for the state and a $3,000 benefit for local government. On top of that, three new jobs are created with each new home, said Assemblyman Jose Solorio, D-Anaheim, also a bill co-sponsor. -Ventura County Star, May 14, 2009*
However, on an issue that would outwardly seem to benefit me as a REALTOR, I believe this is a very poor use of state funds at this time. Firstly, this seems to be a huge concession to an outstanding lobbying effort. Secondly, I can not trust that there is not a bigger better benefit to the whole with this $200 million and thirdly, singling out one industry as a benefactor of “free money” that we do not have is wrong.
However, if the state really believes putting money to use in the housing industry will have a greater economic impact, I like the tact taken by executive director of the California Economic Forecast Mark Schniepp. Mr. Schniepp opinion is that a better use of the money would be to put it to use in the resale home market and this makes a ton of sense to me. There will be job creation due to rehab and renovation and property taxes of foreclosed homes will start being paid again. Locally, neighborhoods come back to life and revenue will start flowing again in to the local retailers and service businesses.
“Once they get the existing home market going, it would automatically get the new home market going,” he said. To do otherwise — to bypass stimulating existing home sales — goes against the grain of how the housing cycle works, he said.
“It’s short-sighted to limit it to the new home market,” he said.
Schniepp challenges the argument that new home sales create more bang for the buck economically, since buyers of existing homes spend on renovations, new furniture, appliances and other things.*
Another factor that I can not agree with is that this credit can be used on yet to be built homes. If applied strictly to existing inventory I would understand that better, but to apply it towards a home coming in the future is irresponsible and here is why.
Some criticize it for adding to the state’s excess housing supply, even as foreclosures continue to pile onto the market. In April, California posted the nation’s third-highest foreclosure rate, up 42 percent from a year ago, according to RealtyTrac.
“I just view the bill as a short-term solution that creates more of a long-term problem where you’re adding excess houses without any job growth,” said FBN Securities analyst Joel Locker. “Why would you compound the problem just to put a couple of people back to work?” -Reuters, May 13, 2009
Remember these new homes being torn down in Victorville?
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San Diego International Triathlon entry winner
May 23rd, 2009 Categories: Aquathlon and Duathlon Race Reports, San Diego County Triathlon Race Reports, Triathlon Club of San Diego Race Reports
SAN DIEGO– The winning email for subscriber number 122 is ejgowie@aol.com. I have sent an email to the winner and they have until Monday to get back to me.
Next drawing will be for an entry to the Carlsbad Triathlon.
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Quintesential La Jolla 50s beach cottage for sale
May 23rd, 2009 Categories: Aquathlon and Duathlon Race Reports, Real Estate News, San Diego county Real Estate News, What to do in San Diego
SAN DIEGO– DO NOT MISS this opportunity to purchase a wonderful example of the southern California beach cottage. This hilltop 3 bedroom 3 bath La Jolla home sitting above Bird Rock features an amazing view that brings Pt Loma and the Coronado Islands in to your living area. If you are in the market for your ‘surf shack’, you have to see this home. Call me at 760.415.3329. Hinanos are on me.
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Home prices are going…..
May 20th, 2009 Categories: Real Estate News, San Diego County Community News, San Diego County Fixer of the Week, San Diego county Real Estate News
SAN DIEGO– One of the lessons I have learned over the last couple years since I started this blog was not to ‘blog’ to quickly.
On Tuesday morning my copy of the San Diego screamed to me from the front page; Sign of optimism: Home prices rise.
Oh man, this was great news substantiating what I am experiencing in my business when looking back on the last several escrows I have closed. Additionally the night before, I had just blogged about home prices rising as high as 40% in the coming years.
In the Tuesday article they used data provided by DataQuick supporting an increase in our local median home price to $290,000 from both February and March’s median price of $285,000. The message was that the market seemed to be stabilizing with prices slightly increasing, number of home sales up and active listings down as much as 27% from a year ago April. Andrew LePage of DataQuick summed it up this way, ““The key is it’s stability we’re looking for, not a rebound,”.-San Diego Union Tribune 5/19/2009.
I immediately felt a post brewing, but decided to put it off for a day as I had other things that were higher priority. Here’s where that lesson kicks in.
This morning when I opened my paper I was hit with this off the Business section front page; Home prices dip, possible sign of stabilizing.
Excuse me? Wait. What happened to optimism and home prices rising? Home prices dipping equal stabilization and how’d this all happen overnight?
Fortunately the first line established that this article dealt with the southern California market, not specifically the San Diego market as did the other article. This report fortunately contained more of the same good news for a market recovery. The price drop was fairly insignificant when 
compared to the recent past at only $3,000 and home sales were up over 31% making this the best April in three years. However all was not rosy and in speaking with some of my clients there are questions about the changes in the moratoriums and what that might mean.
Complicating the forecasts is the outlook for foreclosures and defaults. After a period of moratorium on foreclosures, lenders are now free to take back distressed properties.
“You’ve got to bear in mind that overall there’s going to be a huge number of foreclosures coming down the pike in the future,” said Christopher Thornberg at the Beacon Economics consulting firm. “It’s not over yet. It’s way too early to call this thing over.”
Kleinhenz said that if foreclosures peak by year’s end, it’s possible that overall median prices might fall once again, as buyers scoop up bargains. But then there might be a sizable recovery and upswing next year, assuming the economy does not falter.-San Diego Union Tribune, 5/20/2009
While this is a very real possibility, I would not cling to this and discount what is already occurring in the market. I just closed escrow with a young family on a 3 bedroom detached house built in 2001 located in the Calavera 
Hills community of Carlsbad for $375,000. It was just over 1600 square feet, was at the end of a cul de sac, backed to open space and had a small but true ocean view. There are some great deals out there and people are buying them.
Something else to consider but what this article does not mention is the competition for these lower priced homes. In my business and in talking to fellow agents, the market under $425,000 has quite a bit of competition. Bank owned properties in this price range especially can see multiple offers in the first 24 hours and buyers are becoming very familiar with the term ‘best and final’. When it comes to making an offer often times you are given one shot to make your best offer. You need to work with someone you can trust as you need to take an honest look at all the information and come up with a real market value figure. This can often mean an offer over asking price in order to succeed.
If you have any questions or are thinking about entering the market as a buyer or seller I can be contacted here.
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San Diego home prices UP 50% in last 4 years
May 15th, 2009 Categories: Real Estate News, San Diego County Community News, San Diego county Real Estate News
SAN DIEGO– If we are fortunate and the authors of the UCLA Anderson report are correct this may be a headline in our future.
Although the report branded 2009 a “throwaway year” and predicted a continued rise in unemployment locally, as a working homeowner I’m sticking with the good.
“The Anderson Forecast, one of the state’s most followed teams of economic analysts, predicted that housing prices will start rising steadily by the second quarter of the year, starting with a rebound in the price of existing single-family homes.
“When it is generally perceived that selling values have reached a bottom, sideline buyers will enter the market and conventional home sales will dominate the real estate recovery,” UCLA economist Mark Schniepp said. “Reported selling values for homes will reverse, slowly at first, and then rise more convincingly.”
The median price, which is projected to average $325,374 this year, will rebound to $490,966 by 2013, according to the forecast.”– San Diego Union Tribune, May 15,2009*
For the San Diego first time home buyer who is already being drawn into the real estate market with incredibly low 30 year fixed interest rates and tax credits of several thousand dollars, there is now another reason to get of the fence and get going.
“…the economists predicted a rebound starting with a sharp recovery in 2010, driven by increasing demand from a growing population. The forecast predicted that by 2013, housing construction will hit 17,000 a year – close to the average of the peak years between 1999 and 2005.”*
I have closed escrows with several first time buyers this year and they have been getting great homes at rock bottom prices and interest rates. The financial decision between renting and buying is becoming very clear in favor of buying, so contact me here when you’re ready to start exploring your home purchase.
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Will selling the Del Mar Fairgrounds save our state?
May 14th, 2009 Categories: Real Estate News, San Diego County Community News, What to do in San Diego
SAN DIEGO– I could not believe my eyes when I saw in my morning San Diego Union that the Governor is contemplating selling the Del Mar Fairgrounds property. I had heard about this before as well as the potential to sell the San Francisco bay property that San Quentin state prison is on.
Now I could write a huge editorial about why I could support the sale of San Quentin as to me this makes a ton of sense. First, I don’t think a better example exists of a worse possible use of land, but mainly I would really love to see a couple prison farms built to replace San Quentin. Here prisoners could be rehabilitated by learning actual job skills. Additionally, the prisoners could make a nice wage thus giving them the ability to make restitution or support payments and have money upon release from the system. Lastly, the system would have a marketable product to supplement operating expenses through the open market sales and/or the use of the farm product within the prison system. But back to the topic at hand.
The people of California own this irreplaceable coastal gem and specifically, the people of San Diego county are the caretakers. This property belongs to us and the sale of this land would do nothing to fix our budget problem. The problem can only be fixed be taking two steps and those are the increase of taxes and fees COUPLED with better spending practices.
One of the best pieces of advise I’ve heard with regard to debt reduction is that “increasing income is not a strategy” especially one time income. The long term solution is only found in reduction of expenses as this is where the most control can be exercised. Now if there are options that can increase long term income flow they obliviously need to be implemented, but solely going out an getting a new job or pawning your wedding ring are nothing more than false hope.
Currently the state budget deficit is projected to be approximately 15 billion dollars with the potential to go as high as 21 billion. The sale of the fairgrounds along with other state properties such as San Quentin, the Los Angeles Coliseum, which is wasting away, and more are predicted to net 1 billion dollars.
The governor’s team estimates that selling the properties could bring in as much as $1 billion, according to documents outlining the plan.
Schwarzenegger is expected to reveal more details this afternoon as part of his revised spending plan that will reflect twin grim scenarios: a deficit of more than $15 billion and the possibility of voters rejecting budget-related measures on Tuesday’s special election ballot, pushing the deficit over $21 billion.-San Diego Union Tribune, May 14, 2009
So as you can see there is little to be gained under this plan. I could potentially get behind this plan if the revenue would wipe out the deficit with surplus and it was coupled with legislation that would prevent this type of deficit again. Yes I am awake, but this is the only way this would make any sense.
Once these properties are gone they are gone forever and we all lose. 
There would be no way a property on the San Diego coast could ever be found and purchased as these parcels just do not exist as they did when the fairgrounds was established in the late 1800s. This is a liquidation of a jewel in the crown of California that will have zero impact on the overall health of our state.
If we’re gonna go broke as a state with or without the Del Mar fairgrounds, I say save me a clubhouse seat, because one day this will pass and California will be all the better for holding on to this gem!!!
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More on loan modifications for San Deigo homeowners
May 11th, 2009 Categories: Real Estate News, San Diego county Real Estate News
SAN DIEGO– This morning I found an additional site for information specific to lenders. This is a great site with links to required forms, requirements specific to each lender and the contact information.
With regard to second(junior) loans, the government realized that in many cases a first lender was willing to do a loan modification but there was not an incentive for the second. In April the Obama administration announced a new program Making Home Affordable that is a more of a supplement to the existing Hope For Homeowners program.
The announcement details incentives offered to lenders to make these modifications more palatable, as well as the guidelines for the modifications on different type loans which could lower the interest rate to as little as 1% for a limited time.
• Shared Efforts with Lenders to Reduce Second Mortgage Payments:
Making Home Affordable will share the cost with lenders of reducing payments for homeowners on second mortgages.
o For amortizing loans (loans with monthly payments of interest and principal), we will share the cost of reducing the interest rate on the second mortgage to 1 percent. Participating servicers will be required to follow these steps to modify amortizing second liens:
- Reduce the interest rate to 1 percent;
- Extend the term of the modified second mortgage to match the term of the modified first mortgage, by amortizing the unpaid principal balance of the second lien over a term that matches the term of the modified first mortgage;
- Forbear principal in the same proportion as any principal forbearance on the first lien, with the option of extinguishing principal under the Extinguishment Schedule;
- After five years, the interest rate on the second lien will step up to the then current interest rate on the modified first mortgage, subject to the Interest Rate Cap on the first lien, set equal to the Freddie Mac Survey Rate;
- The second mortgage will re-amortize over the remaining term at the higher interest rate(s); and
- Investors will receive an incentive payment from Treasury equal to half of the difference between (i) the interest rate on the first lien as modified and (ii) 1 percent, subject to a floor.
- o For interest-only loans, we will share the cost of reducing the interest rate on the second mortgage to 2 percent. Participating servicers will be required to follow these steps to modify interest-only second liens:
- Reduce the interest rate to 2 percent;
2 April 28, 2009
- Forbear principal in the same proportion as any principal forbearance on the first lien, with the option of extinguishing principal under the Extinguishment Schedule;
- After five years, the interest rate on the second lien will step up to the then current interest rate on the modified first mortgage, subject to the Interest Rate Cap on the first lien, set equal to the Freddie Mac Survey Rate;
- The second lien will amortize over the longer of the remaining term of the modified first lien or the originally scheduled amortization term, with amortization to begin at the time specified in the original contract;
- Investors will receive an incentive payment from Treasury equal to half of the difference between (i) the lower of the contract rate on the second lien and the interest rate on the first lien as modified and (ii) 2 percent, subject to a floor.
For all the informtion go here.
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Mortgage workout programs for San Diego homeowners
May 10th, 2009 Categories: Real Estate News, San Diego County Fixer of the Week, San Diego county Real Estate News
SAN DIEGO– The following table is provided by the California Association of Realtors for private use. Before contacting your lender, review their requirements listed below and have the following ready. You have nothing to lose by trying to get your loan modified, yet there is much to be gained.
Additionally, some of the more popular lenders in our area such as Countrywide and WAMU have been purchased, so make sure you read the entire document to see where your lender is listed.
For those with a second, which is quite common in the San Diego area, there are new efforts to help modify these second loans which I will write about in a coming post.
We estimate up to 50 percent of at-risk mortgages currently have second liens. By offering homeowners a way to lower payments on their second mortgages through our Second Lien Program, we may potentially reduce payments further for up to 1 to 1.5 million homeowners, accounting for up to 50 percent of participants in the Home Affordable Modification Program, as well as maximize the effectiveness of our first lien modification program. -Making Home Affordable program update 4/28/2009
If you have any questions please contact me here and I will do my best to answer or help find the answer for you.
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LENDER/PROGRAM |
PROGRAM SNAPSHOT |
ELIGIBILITY REQUIREMENTS |
STEPS/PROCESS/ TIMELINE |
CONTACT/MORE INFO |
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Making Home Affordable Modification (The Obama Administration’s Loan Modification Program)
Adopted by Fannie Mae, Freddie Mac, and Wells Fargo
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Designed to help homeowners who are at risk of foreclosure. The Administration is offering government assistance to loan servicers and investors to help offset the cost of modifying qualified homeowners into affordable mortgages. |
l Loan originated on or before Jan. 1, 2009. l Primary residence, owner occupied, single family (one to four units). l May not be investor-owned. l Property may not be vacant or condemned. l Borrower owes an amount equal to or less than $729,750 on the first mortgage (higher limits allowed for owner occupied properties with two to four units). l Borrower is at risk of foreclosure due to a hardship that has increased expenses (i.e. medical bills), a significant increase in mortgage, or a reduction in income since the current loan was created. l Borrower may be in bankruptcy. l Current total monthly mortgage payments exceed 31 percent of gross monthly income. |
Contact your mortgage servicer to check eligibility. If you qualify, ask your servicer to be considered for a Home Affordable Modification.
Program timeline Mar. 4, 2009 – Dec. 31, 2012 |
For more information regarding the Obama Administration’s Loan Modification plan, visit the site below.
http://www.financialstabili ty.gov
If you are a Wells Fargo customer, you can contact also use the contact info below.
Call (800) 678-7986
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LENDER/PROGRAM |
PROGRAM SNAPSHOT |
ELIGIBILITY REQUIREMENTS |
STEPS/PROCESS/ TIMELINE |
CONTACT/MORE INFO |
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Making Home Affordable Refinance (The Obama Administration’s Refinance Program) |
Designed to help homeowners in existing Fannie Mae or Freddie Mac loans that are current on their mortgage payments to refinance and take advantage of lower interest rates. |
l Primary residence, owner occupied. l Must be a conforming loan owned or securitized by Fannie Mae or Freddie Mac. l Borrower must have sufficient income to support the new mortgage debt. l First mortgage may not exceed 105 percent of the current market value of the home. l Borrower must be current (current being defined as borrower has not been more than 30 days late on a mortgage payment in the past 12 months.
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Contact your mortgage servicer to check eligibility. If you qualify, ask your servicer about the application process for the Making Home Affordable Refinance.
Program timeline Mar. 4, 2009 – June 2010 |
For more information regarding the Obama Administration’s Loan Modification plan, visit the site below.
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LENDER/PROGRAM |
PROGRAM SNAPSHOT |
ELIGIBILITY REQUIREMENTS |
STEPS/PROCESS/ TIMELINE |
CONTACT/MORE INFO |
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Hope For Homeowners (H4H)
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Designed for borrowers at risk of default and foreclosure. Provides new 30-year or 40-year, fixed-rate mortgages insured by FHA, mostly via refinance. Lender must willingly participate. |
l Loans originated on or before Jan. 1, 2008. l Primary residence, owner occupied (Borrower may not own a second home). l Unable to pay existing mortgage without assistance and has made at least six payments. l Current total monthly mortgage payments exceed 31 percent of gross monthly income as of March 2008. l Homeowner has not been convicted of fraud in the last 10 years and did not knowingly or willingly provide false information to obtain existing mortgage. |
Contact your lender to check for participation in H4H program
Need to apply through participating lenders
Program timeline Oct. 1, 2008 – Sept. 30, 2011
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For a list of participating lenders visit the site below.
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PROGRAM SNAPSHOT |
ELIGIBILITY REQUIREMENTS |
STEPS/PROCESS/ TIMELINE |
CONTACT/MORE INFO |
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Countrywide Financial (Bank of America)
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Homeownership Retention Program for Countrywide Customers Will modify troubled mortgages with interest rate and principle reductions. |
l Subprime or pay option adjusted-rate mortgage loans originated on or before Dec. 31, 2007. l Primary residence, owner occupied (one to four units) l Borrower is 60 days or more delinquent and current loan-to-value is 75 percent or greater. l Borrower is current today but becomes 60 days or more delinquent at any time before June 30, 2012, and loan-to-value is 75 percent or greater at the time of the modification. l Modifications would be designed to achieve sustainable payments at a 34 percent debt-to-income (DTI) ratio of principal, interest, taxes and insurance. |
Call BofA/Countrywide to check for eligibility
Program timeline Begins Dec. 1, 2008 with no end date specified. |
Call (800) 669-6650
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PROGRAM SNAPSHOT |
ELIGIBILITY REQUIREMENTS |
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Citigroup, CitiMortgage
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Citi Homeowner Assistance Program Will preemptively reach out to homeowners in need of assistance and will not initiate a foreclosure or complete a foreclosure sale on any eligible borrower where Citi owns the mortgage.
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l No requirements on origination. l Must be first mortgage and must be a loan Citi owns. l Primary residence, owner occupied (owner may own a second home). l Borrower is working in good faith with Citi. l Borrower may not be currently behind on their payments but may require help to stay current. l Current total monthly mortgage payments exceed 38 percent of gross monthly income.
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Call Citibank to check for eligibility
Program timeline Nov. 11, 2008 – May 2009
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(800) 667-8424
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Homeowner Unemployment Assist Program The newest component of Citi’s Homeowner Assistance Program, which is designed to reduce the monthly mortgage payments of recently unemployed CitiMortgage borrowers to an average of $500 for three months. |
l Borrower has lost job temporarily and involuntarily. l Must be first mortgage loan that is owned and serviced by CitiMortgage, Inc. l Primary residence, owner occupied. l Loan must have conformed to government sponsored enterprise (GSE) limits at time of origination. l Borrower is 60 days or more delinquent or is in foreclosure. l Borrower has sufficient funds to make the reduced payment. l Borrower meets all insurer or guaranty requirements. l Borrower is not eligible to participate in the FDIC’s long-term modification program, which Citi has adopted.
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Call Citibank to check for eligibility
Program timeline Mar. 3, 2009 – Mar. 2011
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(800) 667-8424
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PROGRAM SNAPSHOT |
ELIGIBILITY REQUIREMENTS |
STEPS/PROCESS/ TIMELINE |
CONTACT/MORE INFO |
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JPMorgan Chase & Co.
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Chase’s mortgage modification program includes extending modification programs to Washington Mutual and EMC Mortgage Corp. customers. Program is designed to actively contact borrowers and work with them to develop viable and sustainable options. |
l No requirements on origination. l Must be first mortgage and must be a loan JP Morgan Chase owns. l Primary residence, owner occupied (owner may own a second home). l Targets Chase, Washington Mutual or EMC Mortgage Corp., borrowers with adjustable-rate mortgages (ARMs) including subprime and pay-option ARMs. l Modifications would be designed to achieve sustainable payments at 31 to 40 percent debt-to-income (DTI) ratio of principal, interest, taxes and insurance.
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Call Chase to check for eligibility
Program Timeline Chase expects to implement by Jan. 31, 2009 and will extend two years after implementation. |
For help with Chase, WAMU or EMC loan, call (866) 550-5705
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PROGRAM SNAPSHOT |
ELIGIBILITY REQUIREMENTS |
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IndyMac Federal Bank, FDIC
Downey Savings and Loan, PFF Bank and Trust, Citigroup |
Program to modify troubled mortgages to achieve affordable and sustainable mortgage payments for borrowers, and increase the value of distressed mortgages by rehabilitating them into performing loans. |
l No requirements on origination. l Must be a first mortgage and must be a loan owned, or securitized and serviced, by IndyMac Federal l Primary residence, owner occupied l Loan is at least 60 days delinquent (where the loan is considered one day delinquent on the day following the next payment deadline). l Borrower of a participating lender is at risk of default due to payment resets or changes in the borrowers’ repayment capacities. l Modifications would be designed to achieve sustainable payments at a 38 percent debt-to-income (DTI) ratio of principal, interest, taxes and insurance. |
Call an IndyMac Federal customer service specialist to check for eligibility.
Program Timeline Aug. 2008 – no end date specified. |
Call (877) 908-4357
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*Revised 3/24/09
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I have been lost
May 5th, 2009 Categories: Real Estate News
SAN DIEGO– There is nothing worse than losing the use of your laptop and your desktop in the same 24 hour period, but after several hundred dollars, hours spent with support and the help of MRJ I am back in action!!! Have you missed me?
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