What a great opportunity to relax and network among other San Diego Real Estate Professionals at the D Street Bar & Grill, in Encinitas, on June 23, 2009. There will be no educational agenda for this meetup; just good ol' fashioned fun and networking.
We're trying to "rebuild" the fun and educational times of two summers ago so please invite a friend or two
Join in on the fun, business networking, free appetizers, and raffle prizes. This month, we'll join up with Coastal Networking, one of San Diego's best networking groups. Meet great contacts for either business or pleasure. This month, we'll be at Venice Ristorante in UTC from 5:30 to 7:30ish.
The world of short sales and REO's is not without its predators in Realtor's clothing.
Some of you, for example, may have had a short sale listing or sale blown out of the water because of an inflated BPO (Broker's Price Opinion) designed to negatively sway a lender's/negotiator's decision regarding offer(s) on the table. Often, these inflated BPO's are generated to gain an unethical financial or business advantage--generally to obtain a listing agreement from lenders and loan servicers.
When this practice occurs, it harms not only potential buyers, but also owners whose homes end up going to foreclosure, the buyers' and sellers' agents, and the lenders who entrust BPO's and property valuations to agents with ulterior motives.
It is an unethical practice that can have disastrous results for many.
But those who inflate BPO valuations in California could end up losing their real estate licenses.
Effective January 1, 2009, agents who inflate BPO's might have to forfeit or suspend their real estate licenses, courtesy of the California Department of Real Estate, "if the licensee generates an inaccurate opinion of value for a short sale of residential real property to manipulate the lender to reject the short sale or to acquire a financial or business advantage, such as obtaining a listing agreement," per SB 1737.
Until recently, we all heard about the demise of the Mom and Pop real estate agencies, and how all the independents would be swallowed by Coldwell Banker, Prudential and all the other red, white and blue real estate boxes.
We were told that ultimately, there would only be a few big firms left standing in the world of real estate brokerage.
It was all solid research, or so we were told.
But:
Murphy's Law of Research Enough research will tend to support whatever theory.
My theory, based on anecdotal evidence, tends to support another view; namely, that the prairie fire that has swept the real estate market the last couple of years has spawned a proliferation of small and independent real estate companies. I am amazed at the number of new and unknown companies in our San Diego real estate market--and find that in certain communities, they are outlisting and outselling their behemoth brethren
What gives? I wondered just a couple of weeks ago.
Now I understand.
It was just last week that I heard Sotheby's International Realty was closing operations in San Diego--and that Prudential would be offered the chance to pick up the pieces.
Humph. Never did consider myself to be a piece--or a piece of anything.
Our little group decided to join that growing group of agents and brokers who operate without franchise ropes--and the rugs that tend to get pulled out from under when least expected.
Yesterday, we made it official with our MLS and Board of Realtors. The hardest decision, though, was what to call ourselves.
In the end, we unanimously decided to let the tail wag the dog--and named the company after our website that has been around for years:
Are there foreclosures in your neighborhood? Sacramento, CA has certainly had its fair share of real estate foreclosures. Some neighborhoods worse off than others. The steps to be a pro-active neighbor are not just for Sacramento neighborhoods but can be applied all over the country.
Have homeowners moved out on your street? Are there vacant homes on your street? Have renters moved out and no one has moved in?
Have you seen the remnants of a Foreclosure in your neighborhood? Are you sick of seeing burned-up grass in neighborhoods?
I recently saw what could be a solution to help sell a house where the banks have decided to turn off the water and no one is taking care of the lawn.
Here are some solutions neighbors can do to help preserve their own neighborhoods:
Form a Neighborhood Watch through your local Police Department
Become familiar with your neighbors and know who is living in the houses on your street
Be aware when neighbors move out (many times a house stays vacant for months before a bank is aware that the owner has even moved out.
When a house is vacant, check for trash and put it out for pick-up. Remember, no one is there to do it and trash brings rats into your neighborhood
Park one of your cars in the driveway and rotate them to keep pilfers at bay
Pull weeds and mow the lawn...take turns in your neighborhood and keep up your street
Report broken windows etc to your County officials
Report any suspicious cars or people on the property
It's time that neighbors took back their neighborhood and become pro-active. Don't try to use the water or figure out a way to turn on what has been shut off at a vacant house. As this may cause major flooding inside a winterized house. If water is needed, use your own water.
A proactive approach is always less stressful and will lend itself to being a "good neighbor," while helping yourself in the process.
There are very profound fears that our credit markets are crumbling, and that life as we have known it may be in for serious change.
Now, as never before, we as real estate professionals need to help create solutions for our clients and bring sense to the market wherever and whenever we can. We need to know not only available mortgage programs (and savvy mortgage pros), but also become familiar with creative financing and alternative ways of selling real estate.
One thing lenders could do immediately is to allow existing loans to become assumable.
Many agents are unfamiliar with assumable loans, and might wonder how they work.
Let's use a simple example: Home Seller has an outstanding mortgage balance of $150,000 and is willing to accept a $195,000 sales price. Home Buyer pays $45,000 plus closing fees and assumes the existing financing. Seller exits the transaction with that amount, less closing costs. Future mortgage payments are now made by Home Buyer to the loan servicer.
In some cases, lenders (and sometimes the Seller) might offer secondary financing to help with the difference between asking and sales price--as long as the buyers had a cash stake in the deal. This could be done via a simple second, an all-inclusive trust deed or wrap-around mortgage.
I can't help but wonder why mortgage lenders don't revive the assumable loan, help kick start the real estate market, and save at least a portion of their own and investors' portfolios in the process? Their investors would surely rather have their loans paid off by another borrower, rather than suffer near-certain loss in a foreclosure sale.
In many cases, sellers have no equity. Why not allow them to offer their mortgage debt (or renegotiated debt) as assumable financing for potential buyers? Lenders might be relieved to have mortgage payments brought current--and might even require the new buyer to deposit two or three month's payments with them as insurance against future default.
By allowing assumable financing, lenders would fare much better vis-à-vis short sales and foreclosures--and more homeowners would be able to save their credit and exit their homes with dignity. Most lenders now force homeowners to be in default with their mortgage before they will even consider a short sale or modification of terms.
It just makes sense to get the mortgage debt seamlessly transferred before it ever goes default.
And with the strangled liquidity in financial markets, it makes more sense than ever to transfer debt rather than forcing buyers to secure new financing--which may or may not be available.
Louis Cammarosano at the Home Gain Blog just posted this on Active Rain. The Home Gain Blog is another great site I visit for interesting real estate reading--and for which I sometimes write.
The issue of tightening real estate licensing is critical. Far too many untrained licensees (along with equally foolish folk on Wall Street) have done far too much damage to American homeowners and the real estate market.
Last week, I had the opportunity to interview Southern Califoria and Nevada real estate legend Bob Dyson. He has been in real estate for 40 years and has a long track record of success--ranging from owning the master national Red Carpet Real Estate franchise to Dyson & Dyson Real Estate in Southern California and Nevada, to Broker for Sotheby's International Realty in San Diego and Riverside Conties.
But the interview wasn't about Bob Dyson.
It was about a radical proposal that is quickly being embraced by Realtors, lenders and local Real Estate Boards. We taped a total of four short interviews, but the last two will probably be of most interest to the Active Rain audience--and I am posting them here.
Why resort to radical resolutions?
Because, says Bob Dyson “This is a real estate depression–a serious, serious issue.”
He sees an immediate need to stabilize real estate markets and neighborhood values. He also believes the mortgage lending industry needs to get out of the “asset management” business, and instead focus attention on new loan originations.
So what to do with all those defaulted loans and pre-foreclosures?
That’s where Dyson’s proposed “American Incentive Resolution” saves the day.
How would it work?
1. The American Incentive Resolution Corporation (as a government entity) would buy defaulted loans from lenders at 50 percent of face value.
2. Re-market these homes through Realtors at retail market value.
3. Offer these homes to first time buyers and those whose credit and FICO scores have been damaged by short sales and foreclosures the last couple of years. The initial terms would be a 12-month lease-purchase, with all payments accruing to a down payment as long as payments are made on time. Lease payments would equal what loan principle, interest, taxes and insurance would be under normal loan terms at 5 percent interest. Initial move-in would entail first and last months’ payments.
4. At the end of 12 months, the lease would become a purchase with all payments made under terms of the lease being applied to the full down payment.
Some will argue "Be careful whom you make your protector lest they shall become your jailer." In other words, keep government out!
Bob would likely reply that "Better we oblige the government to offer these properties to the American public, than to spread the spoils among congressional cronies."
The first video below details Bob Dyson’s proposal for restoring neighborhood values and the real estate market, while the second explains how YOU can involve your local board in helping to create and implement the American Incentive Resolution:
For additional reading:
http://sandiegopreviews.com/2008/09/01/a-most-unorthodox-market-bob-dyson/
This Carlsbad home sold in less than three weeks back in 2003, and at that time we set a record for the highest price ever paid for this 1720 square-foot model: $446,000.
This highly upgraded Poinsettia Heights townhome with views over Carlsbad to ocean was nothing short of what San Diegoreal estate buyers were seeking in those days. The wife, in decorating this Aviara home, dismissed all costs. She buffed it out with new diagonally-laid tile flooring downstairs, new granite kitchen, marble master bath, and a powder room whose ultimate cost had yet to be revealed to the husband. To appease him and redirect attention, another king’s ransom was spent on the garage with gleaming epoxy flooring, tool cabinets and over-the-top garage storage.
Located adjacent to the Carlsbad community of Aviara, Poinsettia Heights is a gated community near parks, the South Carlsbad State Beach, good schools and shopping.
At this time and as of this writing, there are 3 active listings in Poinsettia Heights, ranging in price from $499,000 to $585,000.
For current availabilities in gated Poinsettia Heights, Aviara, Carlsbad or other North County homes, call Mike or Roberta Murphy at 760-402-9101/9102 or toll free at 877-818-8197.
We have a great couple looking for a San Diego condo near the beach. They were hoping to locate second-home with a price under $250,000–and were more concerned about a coastal location than the size of the unit.
We looked at condos in Oceanside, in Pacific Beach and Ocean Beach. What we didn’t expect to find was a lovely one-bedroom condo in Encinitas–at the gated community of Pacific Pines. It offers granite surfaces, brick fireplace, dishwasher, refrigerator, stove/microwave and washer/dryer. It is small at 650 square feet, but the price was remarkable at $195,000.
The gated community of Pacific Pines offers a pool, spa, tennis courts, club house, BBQ areas, picnic tables, sandy volleyball court, racquetball court, nearby hiking trails, and a location exquisitely close to the San Elijo Lagoon and Cardiff by the Sea.
We quickly wrote a full price offer on this Encinitas condo and submitted it this morning. It’s another one of San Diego County’s real estate foreclosures, so we are prepared for the inevitable bank and bureaucratic delays.
Below is the quick video I made for the clients prior to their drive down to Encinitas:
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
Join in on the fun, business networking, free appetizers, and raffle prizes. This month, we'll join up with Coastal Networking, one of San Diego's best networking groups. Meet great contacts for either business or pleasure. This month, we'll be at Venice Ristorante in UTC from 5:30 to 7:30ish.
The world of short sales and REO's is not without its predators in Realtor's clothing.
Posted by 
Until recently, we all heard about the demise of the Mom and Pop real estate agencies, and how all the independents would be swallowed by Coldwell Banker, Prudential and all the other red, white and blue real estate boxes. 
There are very profound fears that our credit markets are crumbling, and that life as we have known it may be in for serious change.
Last week, I had the opportunity to interview Southern Califoria and Nevada real estate legend Bob Dyson. He has been in real estate for 40 years and has a long track record of success--ranging from owning the master national Red Carpet Real Estate franchise to Dyson & Dyson Real Estate in Southern California and Nevada, to Broker for Sotheby's International Realty in San Diego and Riverside Conties.
This 
We have a great couple looking for a San Diego condo near the beach. They were hoping to locate second-home with a price under $250,000–and were more concerned about a coastal location than the size of the unit.
;)
;)
