Homes For Sale Used As Rave Party in San Diego

Foreclosure Rave Parties in San Diego… You’ve got to read this from San Diego 10 News,

Million-dollar homes in the San Diego area are being turned into nightclubs by teenagers, and the homeowners have no idea — until sheriff’s deputies arrive to break them up. Several homeowners said it has happened to at least three vacant homes for sale — two in Fallbrook, one home in San Marcos.

The teens first spot homes with for-sale signs, reported television station KGTV in San Diego. Then they call the listing agent to confirm the homes are vacant. In two recent cases, teens found an open bedroom window to gain access.

Robbins owns a home in Fallbrook in a gated community that’s listed at $1.2 million. On July 3, teens broke into his home through an open window and held a two-day party.

“The family room was full of people,” Robbins said.

Photos found online show hundreds of teenagers and young adults with beer and hard liquor, dancing to music played by a disc jockey.

“There were lots of kids and lots of noise,” said neighbor, Matt Premo.

According to a real estate agent who sent KGTV the pictures, the partygoers ripped out some wiring. That enabled them to open the home’s front gate, giving hundreds of partiers a way in.

“I thought it was the owners’ kids having a party,” said Premo.

But that wasn’t the case. Robbins, and his real estate agent, had no idea until police broke up the party.

A neighbor called the authorities, which finally put an end to the party, but the mess the partiers left behind cost Robbins $8,000.

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Investors Drive Foreclosure Prices Up In San Diego

This article from the Associated Press sums exactly what is happening with San Diego Real Estate that is priced under $400,000 through out the county.

Home shoppers in parts of the country with lots of foreclosures are finding it increasingly difficult to buy. Investors are bidding up prices thousands above the original asking price.

Federal legislation slowing the number of foreclosures is adding to the problem by reducing the number of homes on the market. For instance, in Las Vegas, one of the areas where the bidding problem is greatest, home inventories are down 10 percent since March, according to the Las Vegas Association of REALTORS®.

When a bidding war erupts, the problem is particularly difficult for traditional buyers because investors are usually cash purchasers. They can bid up a property without concern whether the appraisal will prevent them from getting a loan.

Experts say the problem is not unlike the situation at the height of the housing bubble.

“This market is about as abnormal as the hypermarket that we came out of a few years ago,” says Jay Butler, director of the Realty Studies program at Arizona State University.

Source: The Associated Press, Jonathan J. Cooper (07/20/2009)

San Diego Foreclosure Inventory – Where Are You?

Ok, I just got this email from Jason Gilbert of  SOCALCIA which was sent to him by the one and only Bruce Norris of The Norris Group.

From: Bruce Norris
Sent: Thursday, June 11, 2009 7:04 AM
To: Jason Gilbert
Subject: RE: Contrarian Activity Charted

Hi Jason,

What’s about to hit California will be very damaging. There are 240,000 properties currently in some stage of foreclosure process, 900,000 owners have stopped making their payments and 3 million California homeowners are under water. The next 18 months will see the sale of a lifetime on California real estate.

We have one student who is concentrating on condos. At the peak, this condo built in 2005, went for $300,000. He just bought it for $31,000. It rents for $1,100.

Bruce

————————

INVESTORS:  You HEARD Bruce . . . If you don’t act NOW, you will miss out on the “Sale of a lifetime on CA real estate”! The BEST place to get these deals will be revealed at our next meeting, so for details visit www.socalcia.com

So… I went on ForeclosureRadar.com and checked out the Bank Owned inventory. Here are the Maps for San Diego Bank Owned Foreclosures and for North County Bank Owned Foreclosures. They show a total of 3748.

To get through this San Diego Real Estate Fiasco we need to purge the system of this “shadow inventory” of foreclosed homes. The California Foreclosure Prevention Act that was signed last Feburary by Gov. Schwarzenegger was supposed to slow things down even further, but it seems that many of the “major player” banks have received immuity from this new moratorium on foreclosing. Click Here for a good article from the SacBee on this topic.

The time is coming for a landslide of killer deals on California and San Diego Real Estate.

You need a seasoned real estate team that will help you cash in on the opportunities as they appear.

Contact Us Today.

Financial Incentives and Uniform Process for San Diego Short Sales

This just in…

Obama Administration Announces Financial Incentives and Uniform Process for Short Sales
National Association of REALTORS® Government Affairs Division, 500 New Jersey Avenue, NW, Washington DC, 20001

Responding to the call ofthe National Association of REALTORS@, on May 14, 2009, the Obama Administration announced incentives and uniform procedures for short sales under its new Foreclosure Alternatives Program (FAP). For borrowers who are unable to retain their home under the Making Home Affordable Loan Modification Program, the servicer may consider a short sale or, if that is not successful, a deed-in-Iieu of foreclosure. Participating servicers must comply with program requirements so long as they do not conflict with contractual agreements with investors.

• Borrowers (Homeowners). Borrowers/homeowners qualify under the FAP if they meet minimum eligibility requirements for the Home Affordable Modification program but don’t qualify for a modification or do not successfully complete the three month trial period. Before proceeding with a foreclosure, servicers must determine if a short sale is appropriate.
• Incentives. Incentives include: (1) $1,000 for servicers for successful completion of a short sale or deed in lieu of foreclosure; (2) $1,500 for borrowers/homeowners to help with relocation expenses; and (3) up to $1,000 toward the cost of paying junior lien holders to release their liens (one dollar from the government for every $2 paid by the investors to the second lien holders).
• Standardized Documents. The program will include streamlined and standardized documents, including a Short Sale Agreement and an Offer Acceptance Letter. The goal is to minimize complexity and increase use of the short sale option.
• Property Valuation by Appraisal or BPO. Servicers will independently establish both property value and minimum acceptable net return, in accordance with investor requirements. The price may be determined based on an appraisal or one or more broker price opinions (BPOs), issued no more than 120 days before the date of the short sale agreement.
• Timeline. In the Short Sale Agreement, servicers must give borrowers/homeowners at least 90 days to market and sell the property, or up to one year, depending on market conditions. Property must be listed with a licensed real estate professional with experience in the neighborhood. No foreclosure may take place during the marketing period (at least 90 days) specified in the Short Sale Agreement.
• Commissions. The Short Sale Agreement must specify the reasonable and customary real estate commissions and costs that may be deducted from the sales price. The servicer must agree not to
negotiate a lower commission after an offer has been received.
• No Borrower Fees. Servicers may not charge fees to borrowers/homeowners for participating in the FAP.
• Program Expiration. The program is in effect through 2012.
• Deed-in-lieu of Foreclosure Option. Servicers have the option to require the borrower/homeowner to agree to deed the property to the servicer in exchange for a release from the debt if the property does not sell within the time allowed in the Short Sale Agreement (plus any extensions).

Need Help with a San Diego Short Sale?

Contact Us Today – We are your San Diego Short Sale Experts.

Travis Houston | REALTOR, e-PRO
West of the Five Real Estate Services
Cell: (858) 232-2008
Fax: (858) 408-3212
Travis@WestoftheFive.com

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The Housing Crisis Is Over

So what’s going to stop the housing decline? Very simply, the same thing that caused the bust: affordability.

Wow!!! According to the New York times article quoted, it’s official, the United States of America Real Estate debacle is over and April 2008 marks the bottom of the downturn. Now THAT is a bold statement. One I don’t agree with concerning San Diego real estate.

The next question is: Even if home sales pick up, how can home prices stop falling with so many houses vacant and unsold? The flip but true answer: because they always do.

Yes, I agree that home sales will pick up this year (Real Estate is experiencing a Nordsrom-style Half Yearly Sale) and yes property is way more affordable for certain market segments, especially first time home buyers. What I don’t agree with is that we have hit bottom. It will be nearly impossible to hit bottom for San Diego real estate prices with the insane amount of foreclosures and short sales going on at the moment. These distressed sales levy a heavy amount of downward price pressure on the typical retail market. My prediction is that we’ll shed two important things next year in 2009… the number of foreclosures and a president. At least one will be good for the state of the nation, hopefully two.