Mortgage Trouble in San Diego? Beware the Scammers
May 24th, 2008 Categories: Mortgage News, San Diego, San Diego Real Estate, San Marcos
I am just now cooling down after spending a good part of this afternoon trying to help a San Diego area homeowner saddled with the unpleasant results of churned mortgages.
This particular property in rural San Marcos has been refinanced by the same lender with a total of nine loans over a couple of years. In one instance, only 28 days elapsed between refinancings. With total debt now approaching $2 million, this distraught owner is seeking a way to keep her home and not be forced to sell it.
Sometimes, keeping people in their San Diego homes is just part of our job–and one of the most rewarding ones.
But the ordeal got me thinking of all the scams surrounding (and invading) San Diego real estate. Mortgage scams certainly contributed to the rise in San Diego foreclosures and short sales, but it is the buzzards circling over and divebombing distressed homeowners that infuriates this Realtor.
Some of the current San Diego scams:
1. The mortgage buzzard persuades the distressed homeowner to sign over the deed to their San Diego home–and then offers to rent it back at a rate that may exceed the original mortgage payment. If the homeowner-turned-tenant falls behind, they are not only evicted but have also lost any equity they may have had in their property.
2. Beware of what you sign: Many homeowners have inadvertently signed over the deed to their San Diego real estate, believing they are simply signing mortgage documents. I have spoken with several homeowners who have been near-victims of this real estate scam.
3. Watch out for hefty upfront fees charged by those who offer to stop your San Diego foreclosure. All too often, these scammers generate lots of paperwork, get some signatures, collect a check (for up to three month’s payments)– and disappear. Far better to call a San Diego Realtor who can help negotiate with lenders on your behalf–and is paid only when and if your property actually sells or is leased.
If you have any questions about these scams, please feel free to give me a call at 760-402-9101 or contact me via this site. I’ll try to answer your questions.
PS: No offense intended to California vultures.
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Are Lenders Redlining Entire Cities?
April 19th, 2008 Categories: Mortgage News, Real Estate News, San Marcos
Redlining is a term that describes the unethical if not illegal practice where lenders red line a neighborhood or community, making it very difficult for buyers to purchase in these afflicted areas.
I have recently heard from a couple of direct lenders, Countrywide Home Loans and Bank of America, that most if not all of San Diego County real estate is in the red zone.
Qualifying for current red zone status simply means that the subject property is located in a declining market area. The impact of this colorization is significant to both the San Diego real estate market as a whole and to first time home buyers in particular.
How this version of redlining works creates a no-win situation for buyers putting down less than 5 percent.
Even if a buyer has negotiated a bargain purchase price, say 10 percent under market value, the appraiser will automatically deduct another 5 percent from the contract price to determine a value. In other words, a borrower cannot get away with putting less than 5 percent down.
I spoke with Brian Brady a couple of weeks ago about this matter. I had been told by a representative from a large direct lender that San Marcos, CA was in a red zone, and would be subject to different lending standards. Brian bristled at the thought of redlining, declaring it an illegal practice unless an entire region were painted red.
Well, it seems that most, if not all of San Diego County real estate, is swimming in blood.
One of our agents is struggling with a couple seeking to buy their first home in the Shadowridge area of Vista, CA. The buyer is an automobile service manager in nearby Carlsbad and his wife is an attorney. They are conservative in lifestyle, and can afford payments on a $417,000 home. However, they are short on down payment. And with current lending guidelines and the unavoidable prospect of buying in a red zone, they can no longer qualify for the 100 percent loan Countrywide Home Loans had promised.
And what makes this particular case so interesting is that the home is a foreclosure held by Countrywide as an REO (real estate owned). Any reasonable person would think that Countrywide Home Loans would jump through hoops to get this liability off their books especially with buyers like these.
Wouldnt reasonable minds agree?
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San Diego Wi-Fi Hot Spots
April 13th, 2008 Categories: Carlsbad, Encinitas, San Diego, San Marcos
As a North County San Diego real estate broker, I often carry a laptop when when showing San Diego homes to clients. And so do many of our real estate clients. These days, we avoid Starbucks because they charge for their wifi service and instead head to the closest Panera Bread, almost any public library, or other resting point where we can easily hop online.
Someday, this will be a useless list because wifi will be everywhere.
But until that time, heres a starter list of free San Diego hot spots. Some may require that you ask for a password, but wont require a swipe of your credit card. (Dont forget, though, that wireless networks are not secure, and be careful of the information you transmit.)
Some local wifi spots in North San Diego County would include:
Coffee Bean & Tea Leaf, Carlsbad Forum, 1935 Calle Barcelona, (760) 634-3268
E Street Cafe, 128 West E Street, Encinitas, (760) 230-2038
Encinitas Chevron - 350 Encinitas Blvd, Encinitas (760)942-6802
Grappa, 328 S. Twin Oaks Valley Road, San Marcos (760) 744-0024
Keiths Automotive Electric - 215 West G Street, Encinitas (760) 436-5400
La Costa Coffee Roasting, 6965 El Camino Real, Carlsbad (760) 230-2038
Moonlight Motors - 215 Melrose Avenue, Encinitas (760) 635-0637
Panera Bread, Carlsbad Forum, 1935 Calle Barcelona, Carlsbad (760) 635-0026
The Blue Mug, 122 S. Kalmia, Escondido (760) 796-7540
Vinaka Cafe, 300 Carlsbad Village Drive, Carlsbad (760) 720-7890
Vons Market - 262 N El Camino Real, Carlsbad (760) 942-4044
(There are surely more than these. Please let me know so we can add other San Diego North County hot spots to the list!)
Click to retrieve a much longer list of wifi hot spots in Greater San Diego.
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Lower Your San Diego Real Estate Taxes in 3 Easy Steps
March 29th, 2008 Categories: Carlsbad, Encinitas, Real Estate News, San Diego Real Estate, San Marcos
Many clients from the past few years have been calling, wondering if it might be worth the effort to get their San Diego property taxes reduced. Property values have dropped significantly in parts of San Diego County, and many are paying property taxes based on what they paid for their homes, rather than what they are worth today.
Others wonder if its really worth paying one of those services $200 or so to tackle the property tax reduction task on their behalf.
Might we be able to reduce our San Diego property taxes on our own?
The short answer is YES but only IF your home is worth less than what you initially paid for it or if you were subjected to a property tax increase because of permitted improvements made on your San Diego County property.
1. Go to: http://arcc.co.san-diego.ca.us/docs/calrev.pdf and print out the required form.
2. Go to Zillow.com or our own free and easy San Diego Home Appraisal tool. You can also search the San Diego MLS for comparable properties. Be realistic, and make sure the property comparables you use have similar square footage, neighborhood location and construction quality. The closer you can come to homes that closely match your own, the better off you will be.
3. Complete the package and return to:
Gregory J. Smith
County Assessor
1600 Pacific Highway, Room 103
San Diego, CA 92101
If your San Diego home is worth less than what you paid for it, this effort may save you hundreds or even thousands of dollars.
If you have any questions, please feel free to give me a call at 760-402-9101.
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San Diego Incomes: A Few Surprises
March 1st, 2008 Categories: Carlsbad, Del Mar, Encinitas, La Jolla, Rancho Santa Fe, San Marcos
As a San Diego Realtor, I am frequently asked about income demographics in San Diego County and find it handy to have a chart for reference.
The one below provides more than a few surprises, courtesy of the San Diego Business Journal, which provided this data last summer and is one of my favorite reads. We found it surprising, for example, that Carlsbad outranks Encinitas and that Poway beat out Coronado.
And would you have guessed that Oceanside would best San Diego? And few should be surprised that tiny Del Mar beat out them all.
Of course, Rancho Santa Fe and La Jolla were not included, as Rancho Santa Fe is not an incorporated city, and La Jolla is part of the City of San Diego.
| Cities Of Interest: | 2007 Population: | Median Household Income : |
| San Diego | 1,326,837 | $61,043 |
| Chula Vista | 227,723 | 68,497 |
| Oceanside | 176,644 | 62,271 |
| Escondido | 141,788 | 60,639 |
| Carlsbad | 101,337 | 90,115 |
| El Cajon | 97,255 | 50,433 |
| Vista | 94,962 | 60,757 |
| San Marcos | 79,812 | 68,109 |
| Encinitas | 63,259 | 86,444 |
| National City | 61,115 | 41,959 |
| La Mesa | 56,250 | 55,667 |
| Santee | 56,158 | 74,321 |
| Poway | 50,830 | 93,542 |
| Imperial Beach | 27,709 | 43,355 |
| Lemon Grove | 25,451 | 57,000 |
| Coronado | 22,957 | 91,748 |
| Solana Beach | 13,418 | 102,810 |
| Del Mar | 4,548 | 108,635 |
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