Fannie Mae’s recent announcement seems to provide some real clarity for owners of San Diego homes in default.

In a nutshell, avoid foreclosures, bankruptcy and deed in lieu of foreclosure if at all possible. It is far, far better to have a short sale–or a pre-foreclosure sale–as a resolution.

Why?

Under the Fannie Mae Announcement 08-16 (released 06/26/2008), short sales or those engaging in pre-foreclosure sales will be cleared to borrow on another home via Fannie Mae in two years from completion date of the short sale. This may be painful, but two years is far preferable to the alternative….

of 5 to 7 years if the home goes to foreclosure and 4 to 7 years if one opts for deed in lieu of foreclosure.

I am horrified that there are real estate agents advising people that there is no difference between a short sale and foreclosure–or that a deed in lieu of foreclosure may be preferable to either.

If homeowners were to follow this fallacious advice, our country’s real estate market would remain in the tank for at least another five years–and by that time we might have gone through an economic depression of epic proportions.

If your San Diego home is in default, please contact a qualified short sale specialist as soon as possible to help avoid the long-lasting consequences of foreclosure. The best buyer for your home is a cash buyer who is in a position to perform on short notice–at no cost to you.

We work with such a buyer–and are willing to forfeit any real estate commission on the sale to this investor group, because they will eventually turn around and list with us.

For additional information, call Mike or Roberta Murphy at 760-402-9101/9102.

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San Diego’s mortgage meltdown and budget constraints have forced Chula Vista to cancel its big annual fireworks display, and Valley Center has fire safety issues, but the 4th of July fireworks displays in the rest of San Diego County will light the skies this Friday night.

San Diego’s real estate market notwithstanding, you shouldn’t have to drive far from your San Diego home to find a good spot to picnic and watch the fireworks:

2007 Fireworks Schedule in San Diego County

SAN DIEGO

Coronado: Glorietta Bay and Silver Strand
July 4, 9 p.m. Day-long festivities with a parade at 10 a.m.
(619) 437-8788.

La Jolla Cove
July 4, 9 p.m.
(858) 454-1444

Mira Mesa Recreation Center
July 4, 9 p.m. Food, rides, games and entertainment in Mira Mesa Community Park during the day.
(858) 538-8122.

Mission Bay Yacht Club
July 4, 9 p.m.
(858) 488-0501.

Ocean Beach Pier
July 4, 9 p.m.
(619) 226-8613.

Mission Bay: Paradise Point Resort
Thursday, July 3 at 9 p.m. with BBQ at 6 pm
(858) 274-4630.

Downtown: Petco Park
Saturday July 12, Fireworks follow the Padres game
(619) 795-5005.

San Diego Big Bay
July 4, 9 p.m.
(858) 751-5755.

Mission Bay: Sea World
July 4, 9:30 p.m.
(800) 25-SHAMU.

EAST COUNTY

Santee: Town Center Community Park Ballfields
July 4, 9 p.m.
(619) 258-4100 x201.

Spring Valley Park
July 4, 9 p.m.
(619) 479-1832.

Campo: Golden Acorn Casino
Saturday, July 5, 9 p.m.
619-938-6000[

NORTH COUNTY

San Marcos: Bradley Park
July 4, 9 p.m. Food and music are part of the celebration happening earlier in the day.
(760) 744-9000.

Vista: Brengle Terrace Park
July 4, 9 p.m. Daylong festivities.
(760) 726-1340, ext. 1574.

Camp Pendleton: Del Mar Beach
July 4, 9 p.m. All day activities including music, food and games.
(760) 725-2313.

Escondido: Grape Day Park
July 4, 9 p.m. Afternoon festivities, including game and food booths, music and entertainment.
(760) 745-1159.

Carlsbad: Legoland
July 4, 8:30 p.m. included with admission
(760) 918-LEGO.

La Costa Resort and Spa
July 4, after dark
760-438-9111

Oceanside Pier
July 4, 9 p.m. Part of the O’Fest All-Day Carnival
(760) 967-2005.

Ramona: Olive Peirce Middle School
July 4, 9 p.m. Grounds open at 5 p.m. for town picnic including food booths and games.
(760) 789-1311.

Rancho Bernardo High School
July 4, 9 p.m. Daylong festivities kick off at 10 a.m. in Webb Park.
(619) 889-8505.

Del Mar Fairgrounds
July 4, 9 p.m. included with admission
(858) 755-1161.

Valley Center High School
Canceled this year. Back in blazing colors in 2009!
(760) 670-7062.

SOUTH BAY

Chula Vista: Bayside Park: Canceled
Wednesday, 9 p.m. Food, music, and entertainment will be featured beginning at noon.
(619) 420-6603.

National City: Kimball Park
Wednesday, 9 p.m. Carnival rides, games and food booths also.
(619) 336-4290.

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With San Diego gas prices going through the ceiling, interest is building for homes that are in walking distance to shopping, theaters, schools and other local destinations.

In the past, many of these properties were shunned by home buyers because of traffic noise and “urban noise.” These days, more and more buyers of San Diego real estate are asking about the nearest grocery store, and how close homes are to schools, parks–and train stations.

Noise is no longer the deterrent it once was.

A new site offers you the opportunity to check the walkability of your own San Diego neighborhood–or perhaps the one you grew up in across the country.

Curious about how walkable your neighborhood might be? Just go to: WalkScore

Now, think I’ll go walk the dog and consider the possibilities….

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There are thousands of San Diego real estate owners who are in various stages of mortgage distress and pre foreclosure. Some have had interest rate resets, making their mortgage payments unaffordable, while others have had life setbacks which might include job loss, divorce, medical problems–or perhaps even gas prices that are breaking bank accounts.

These are just some of the reasons we are seeing (and have seen) so many San Diego short sales and foreclosures this past year–and spend so much of our time trying to help homeowners in distress. Many are seeking short sale relief, where their homes are sold for less than what is owed on them–and for good reason.

Short sales in San Diego are preferable to foreclosure sales because:
1. Credit scores will not be so severely damaged because mortgage debt will be “settled.” The consequences of a short sale will be far less devastating on credit scores than a foreclosure.

2. The homeowner will be able to move out of their San Diego home on terms closer to their own, rather than having a sheriff doing it for them.

3. The homeowner is in a stronger position to negotiate with a lender in a short sale situation versus a foreclosure. Mortgage lenders do not want foreclosures and have no desire to be the owners of San Diego foreclosed properties. The homeowner may be able to exit their home with no judgment or 1099 trailing them.

Short sales, though, come with their own set of problems for Realtors and their clients. Offers from buyers end up on lender’s desks, piled high with dozens of files. It can literally take weeks to get a response to the buyer’s offer, unless, of course, one has an inside track to the lender’s decision makers.

We are now working with a substantial cash buyer of San Diego real estate who has successfully negotiated several hundred short sales with almost all major lenders.  They have also been very successful at stopping foreclosures if adequate notice is given.  We now intend to place all of our qualifying short sales with this buyer–who charges nothing to the seller or us.

It is truly a win-win solution for all San Diego homeowners in distress.

If you need a fast sale for your San Diego home or are in short sale or foreclosure territory, please give us a call at 760-402-9101/9102 and we’ll explore your alternatives.

And under no circumstances should you deal with anyone who tries to charge you for saving your home from foreclosure–or for handling your short sale.

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Sometimes it is good to write about something other than San Diego real estate, Rancho Santa Fe news or La Costa condos. Sometimes, it just feels good to see if there is a way to lend a little hand to the community.

This morning, for example, I heard Sanderling Waldorf School in Encinitas and Cardiff is losing its lease and needs a new location somewhere in North County.

Any ideas?

This north San Diego County private school currently needs around 4500 square feet, with room for 7 classrooms, a kitchen, offices and storage. It is anticipated that over the next four years, there will be a requirement for 6300 feet and 10 classrooms.

The ideal site would have room for two playgrounds: The preschool would be fenced with around 2400 square feet, while the elementary playground would have at least 4000 to 6000 feet.

Location?

Their current school community resides in the Encinitas area. Sanderling Waldorf School would consider sites from Del Mar,Carmel Valley or Encinitas in the South; to Carlsbad, Oceanside, Vista, or San Marcos in the North; and Elfin Forest, Olivenhain or Rancho Santa Fe in the East.

There is a current budget of $7000 per month. The ideal site would have a natural setting, with zoning and permits in place for a school.

Perhaps a church? Or perhaps a public school that is closing its doors in Oceanside? Hmmm…..

Think I’ll place a few calls–starting with Sanderling Waldorf School, Villa Sotheby’s agent Sandy Mirisch, and Main Street Oceanside.

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Might we have a Rancho Santa Fe homeowner seeking over 100 beautiful and organic acres just outside Carmel in Northern California?

Very specifically,we have a Carmel Valley homeowner seeking Rancho Santa Fe real estate with a value ranging from $1.5 to 2.8 million. The property he is offering in return is a lovely 104-acre parcel planted with 380 organic citrus trees, acres of Zinfandel vines, two greenhouses devoted to basil and Whole Foods Markets, and a number of fat field-fed Angus cattle. Plans are also in place for a well-situated Tuscan Villa. Total debt is only $800,000 and the Northern California owner has close to $3 million invested in this prime real estate offering

It’s a long story (best told over a fine bottle of Zinfandel and a couple of aged organic Angus steaks), but this congenial Northern neighbor absolutely must get back down to Southern California–and Rancho Santa Fe in particular.

If you have a Rancho Santa Fe home and have dreams of a bucolic life outside Carmel and California’s premier wine country, please let me know and I’ll arrange for a proper introduction. Going one step further, if you have a fine home anywhere in San Diego and are interested in trading it for something more appropriate, just give us a call at 877-818-81979 or 760-402-9101. And if your property is located elsewhere and you want to exchange it for San Diego real estate, let’s talk see what we can do!

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We have negotiated a number of San Diego short sales, and have yet to have one shorted lender or seller agree to fork over several hundred dollars for a one year home warranty.

And why might the buyer of a short sale need a home warranty?

Consider that homeowners in dire financial straits tend to ignore routine maintenance–and remaining appliances may or may not be in the best condition. Additionally, many of the homes may be vacant or have been tenant-occupied, and seller disclosures may be somewhat meaningless.

What to do if the seller or lender refuses to pay for a one-year home warranty–which we always demand for our San Diego home buyers?

Either negotiate with your Realtor or the seller’s representative to assist with the cost (or pay it in full)–or purchase the coverage for yourself.

This insurance can provide protection if the hot water heater goes cold, if the dishwasher doesn’t, or the air conditioner just blows hot air. There will almost always be a reasonable deductible for service calls, but the protection can be invaluable–especially with neglected homes.

And in case you are wondering, we always insure that our buyers are provided with this coverage–even if we have to pay the cost ourselves.

It is coverage we wouldn’t be without.

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Bob Dyson, Broker-Owner of Villa Sotheby’s International Realty in San Diego and Dyson & Dyson Sotheby’s International Realty in the desert. Bob speaks with the voice of experience, and has never been one to mince  words.

And Dyson’s most recent column, sent via email this morning, is no exception.

Insight from a Real Estate Insider

CURRENT REAL ESTATE MARKET CONDITIONS

by Bob Dyson

I have been asked again to render an opinion on current real estate market conditions as a lot has changed since our last forecast dated March 27th, 2008.

In addition, I personally have been “in the trench” in the development business in San Diego and Riverside Counties and the San Diego real estate sales and listing market working directly with Sellers and Buyers and gathering my own opinion of the market. (more…)

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A looming foreclosure weighed heavily on our North San Diego County clients. Their custom home, purchased at the height of the San Diego real estate market in 2005, had plummeted in value.

Unable to pay mortgage payments of $8000 per month, they threw up their hands and asked for our assistance. We listed the home as a short sale, and dropped the asking price regularly. We hired a professional photographer, advertised heavily both off and online, and whispered the situation and opportunity to countless agents. We procured one lowball offer, which the lender rejected after reviewing their own BPO (Broker Price Opinion).

With payments in arrears since last November, their home was to be sold at foreclosure just yesterday, June 6, 2008. Though the family had located a new home out of state, they were not scheduled to move in until mid-July.

Their worst nightmare was not just the foreclosure, but the fear of a Sheriff showing up at their front door to physically remove them and their possessions out to the street.

And they had no place to go in the meantime.

We had called the lender repeatedly to try and stall the sale–and failed. We tried to procure a legitimate offer that would halt the sale–and even considered (momentarily) writing one ourselves to help these clients. At the eleventh hour, we located a bulk buyer of real estate who apparently has the cell phone number of key asset managers and lending vice presidents.

A magical call and verbal offer from this heavy-duty buyer on Thursday was enough for this lender to cancel the foreclosure that was to take place the next day. The sellers are beyond caring about their home’s sale price; they just want to be sure they have a roof over their heads for the next few weeks until they can make an orderly move with their belongings and pets.

And equally important, they are not paying one red cent to have this issue resolved. Beware the scammers who charge thousands to handle these matters.

We are re-listing the home with the bulk buyer (via a trust agreement) and will have the home back on the market next week–at a price we would never have dreamed possible. Our clients will be able to remain in the home, will keep the lawn and gardens watered and be able to relocate on their own schedule.

And buyers who are seeking a magnificent ocean view custom home in North San Diego County will delight at the pre-negotiated bargain we will be offering next week!

Note: If you are facing foreclosure and perhaps owe more than what your San Diego home is worth, please give us a call at either 877-818-8197 or 760-402-9101. At no charge, we may be able to delay the sale and perhaps even find a way for you to remain in your home.

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I’ve never really given much thought to San Diego County’s two nude beaches: Black’s Beach in La Jolla and San Onofre State Beach at the northern tip of San Diego County. Both are pretty secluded and it appears the nudists are a pretty peaceable lot.

At least until recently.

It is reported in this morning’s San Diego Union Tribune that San Onofre park rangers will start enforcing a ban on nudity after September, 1, 2008. Apparently, there have been public complaints and some park employees objected to working in a place where not everyone is clothed–which specifically targets the Trail 6 beach area.

And like other beach workers who object to picking up cigarette butts, used baby diapers and other foul debris, maintenance workers at San Onofre State Beach object to occasionally having to pick up sex toys, condoms and other “paraphernalia.” Guess it’s a long trek to carry those bags of debris up a remote and steep path that goes up a 60-foot cliff.

Can’t blame either group of park employees for their complaints–and would personally campaign for users of all San Diego beaches to never leave any debris behind.

On the other side of this issue, nudists are proclaiming that their nudity is protected under First Amendment rights as “free speech” and the Naturist Society has issued an action alert, encouraging its members to email and send letters to politicians protesting the nudity ban.

It’s tempting to take my camera and authenticate this blog article with photos, but I’ll pass on the assignment because I’m just not dressed for the terrain.

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