San Diego Foreclosure Bailout Loans: Sub-Prime Still Funding

By
Mortgage and Lending with San Diego VA Home Loans/858-777-9751

Many San Diego homeowners are facing the prospect of foreclosure.  That doesn't have to happen if you have plenty of equity in your home.  Rising food and fuel prices, combined with a tightening credit environment left San Diego homeowners with few options when trouble came knocking at their door.  The implosion of most sub-prime lenders pulled the rug out from under those folks who suffered "life events".  

The three D's:  death, disability, and divorce are the major contributors to foreclosure.  While the press reports that foreclosures in San Diego are rising because of ARM adjustments, we know that the three D's are far more severe to a famiiy's financial well-being than a higher mortgage payment.

Help is available to San Diego homeowners with a substantial equity position.  The "new sup-prime mortgages" aren't new; they've been available in California for decades; private mortgage lenders.   Private mortgage lenders are wealthy individuals or pension funds that understand San Diego real estate.  They realize that housing prices won't free-fall forever.  Most private mortgage lenders are willing to lend up to 70% of your home's value...

REGARDLESS OF YOUR CREDIT HISTORY

Have you received a Notice of Default on your property?  If you can demonstrate an ability to repay a loan, we may be able to help you out of this temporary situation.  Our private mortgage banking and brokerage specialists will analyze your property, review your finances, assess the risk of the extraordinary event thatput your loan into default and offer a financing solution to restore your good credit.

These loans aren't cheap money.  The lender is taking on considerable risk in these loans and wants to be compensated for that risk.  Rates of 12% are not uncommon.  Fees of 2-4% of the loan amount are not uncommon.  A good rule-of-thumb for the loan amount you'll need is:

  1. Determine your pay-off amount for your mortgage. That is best calculated by adding the most recent balance and one monthly mortgage payment. 
  2. Add in any foreclosure costs (this can be obtained from the trustee) 
  3. Add in any back property taxes.
  4. Multiply that amount by 1.05%

This should be the loan amount you request from a private mortgage lender.  If you divide the requested loan amount by the property value, and the number is less than .7, a private mortgage may be available for your San Diego County home.   You should expect a mortgage payment of 1% of the new mortgage loan amount.

We've been arranging private money mortgages for San Diego home owners since 1984.  Yo can contact me at (858)-777-9751 or apply online.

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Location:
California San Diego County
Tags:
hard money san diego

Spam prevention
Show All Comments
Rainer
224,596
Find a Notary Public needAnotary
QEC Internet Services - Long Beach, CA

I don't think many San Diegians have much equity in their home.  Lenders have stripped much of the equity with the repeated refinancing of loans from 1998 -2006.  Most of the equity went to pay off cars, boast, credit cards and the lavish vacations.  Very little of the monies taken from equity went into refurbishing the collateral, in spite of the 1003 stating the loan was for home improvements.

The chickens have finally come home to roost.  Your home is not an investment nor should you employ speculative techniques.  A home can provide an investment return for retirement and the gurus were advising folks to refi and invest the difference.  Bad strategy!

Jul 02, 2008 04:47 AM #1
Rainmaker
311,669
Brian Brady
San Diego VA Home Loans/858-777-9751 - San Diego, CA
858-777-9751

I don't think many San Diegians have much equity in their home.  Lenders have stripped much of the equity with the repeated refinancing of loans from 1998 -2006.  Most of the equity went to pay off cars, boast, credit cards and the lavish vacations.  Very little of the monies taken from equity went into refurbishing the collateral, in spite of the 1003 stating the loan was for home improvements.

That's just factually incorrect.  The average equity in the country is 50%; in San Diego County it's 55%.


The chickens have finally come home to roost.  Your home is not an investment nor should you employ speculative techniques.  A home can provide an investment return for retirement and the gurus were advising folks to refi and invest the difference.  Bad strategy!

A demonstration of misunderstanding.  Leveraged homes with harvested equity, in a safe investment account, are not in foreclosure (they have liquidity).  In fact, borrowers who pursued an aggressive repayment strategy are finding that lenders are more apt to foreclose upon them, BECAUSE they have equity.

Jul 02, 2008 05:03 AM #2
Rainer
224,596
Find a Notary Public needAnotary
QEC Internet Services - Long Beach, CA

Just the facts

California, Florida, Ohio report highest foreclosure totals.  Foreclosure filings were reported on 64,711 California properties in March, the most of any state for the 15th consecutive month. California foreclosure activity increased nearly 21 percent from the previous month and almost 106 percent from March 2007. 

California households received a foreclosure filing in March - 2.7 times the national average.

California Foreclosures By County For April 2008 

San Diego totals are included in the California stats.  If you find a loan originated by Aames, Argent or New Century, you will find little or no equity.  I respect your disagreement, but I've objectively reviewed the data and stand behind the previous comments.  If you assessment is true, it San Diego should be fertile territory for lending as any lender would make a loan with 50% equity in the collateral.

I understand many in the business (especially those new to the business) want to put a positive spin on a very serious matter, but the facts are the facts irrespectively of how you choose to slice it.  If I had never had firsthand insight and worked in the industry as a underwriter, I probably would not be making these revelations.   Many many loans were originated that provided no benefit to the borrower.  Your firm may have been above board and dealt honestly with borrowers, but many many more did not and were only in it for the fees.  I can also speak form the perspective of an originator as I competed for loans.

I underwrote many of those loans and know we did them as 80/20 piggies to borrowers without the financial savvy and wherewithal to make sound investment choices (Hell they could not keep their credit clean with FICOs from 525 - 630); plus the HUD 1 had most of the funds going to pay off creditors, especially credit card companies. 

Yes the old money is well off and protected, but much of the newly acquired appreciation was stripped with repeated refinancing.  I would be well off if I had $1 for every loan that I saw with origination fees above $10,000 at closing.

A spade is a spade and not a club with squiggly lines.

Jul 02, 2008 09:11 AM #3
Rainer
224,596
Find a Notary Public needAnotary
QEC Internet Services - Long Beach, CA

If you use the "pick a payment loan" and pay the minimum with the idea of investing the difference and don't follow that strategy religiously, for whatever reason, your property (home) has a high likelihood of becoming a foreclosure especially if any of the 3 D's occur in your life.

The question becomes was it the 3 D's that caused the foreclosure or the initial decision to pull the equity in the first place and follow an investment strategy that requires discipline.

The rain will come and the winds will blow, will your house of cards stand death, disability, or divorce

See Realty Trac U.S. Map Link Below with Households per Property with Some Type of Foreclosure Activity:  http://www.realtytrac.com/blog/photos/foreclosurepulse_photos/images/46981/original.aspx 

Jul 02, 2008 09:22 AM #4
Rainmaker
311,669
Brian Brady
San Diego VA Home Loans/858-777-9751 - San Diego, CA
858-777-9751

The rain will come and the winds will blow, will your house of cards stand death, disability, or divorce

Which is why liquidity trumps house equity.  This ain't my first rodeo and I'm still in the business of helping families with their finances (after 20 years).

Good luck with your new career!

Jul 02, 2008 04:53 PM #5
Rainer
224,596
Find a Notary Public needAnotary
QEC Internet Services - Long Beach, CA

Much love to you!  Little confused on how you use liquidity and equity in the same sentence.  Over the past 25 years, I've also developed a reputation as a broker know for helping families acquire properties, finance homes and most importantly keep their homes.  I've had my hands in many cookie jars since coming into this business in 1982.

I was still offering conventional Fannie loans until the market values exceed the loan limits in my area.  This business has afforded me many wonderful opportunities to help folk and I continue to do so.  

I made a personal oath to always maintain integrity and deal fairly with each client and not become a prostitute to a commission.  Hey, it worked! 

Good luck to you and I've enjoyed your conversation.  I'm sure you also serve this industry well.

Jul 03, 2008 04:41 AM #6
Rainer
224,596
Find a Notary Public needAnotary
QEC Internet Services - Long Beach, CA

Brian - You market yourself as America's #1 Mortgage Broker!  However, the DRE website don't have a record of you holding a Broker's license.  Is there an accident or is this real? 

I thought in the fairness of full disclosure you would have to be first licensed as a broker to be declared as America's #1 Mortgage Broker.  Being licensed under a CFL license I think you would agree is not the same as being a Broker.

http://www2.dre.ca.gov/PublicASP/pplinfo.asp?start=1 

Maybe I'm reading too much into this!  It is apparent you have a knowledge of mortgage lending, but I'm left confused.

Jul 03, 2008 07:54 AM #7
Rainmaker
311,669
Brian Brady
San Diego VA Home Loans/858-777-9751 - San Diego, CA
858-777-9751

You market yourself as America's #1 Mortgage Broker!  However, the DRE website don't have a record of you holding a Broker's license.  Is there an accident or is this real?

For real.  One doesn't have to hold a California real estate license to broker loans..but you knew that, already.

I thought in the fairness of full disclosure you would have to be first licensed as a broker to be declared as America's #1 Mortgage Broker.  Being licensed under a CFL license I think you would agree is not the same as being a Broker.

You know differently if you truly originated and underwrote loans.  So my question to you is are you ignorant of lending laws or intentionally trying to discredit me ?

It is apparent you have a knowledge of mortgage lending, but I'm left confused.

You're not confused; you're calculating.

Jul 03, 2008 09:17 AM #8
Rainmaker
311,669
Brian Brady
San Diego VA Home Loans/858-777-9751 - San Diego, CA
858-777-9751

Let's not play this game. Ntsike.  I read some of your old stuff and I'm guessing we'll agree more than disagree on most issues.  It's not my nature to engage a combat Marine vet in a war of words; I have too much respect for you service to do that.

Ask me any direct question; I'll give you a direct answer.

Happy Independence Day and thank you for your service.

Jul 03, 2008 10:24 AM #9
Rainer
62,195
Alix Pinzon
Open Mortgage, LLC NMLS # 2975 - Downey, CA
(562)743-6086

Funny, when I've made bad investments, I never cried about it, or asked for help.  Why is it suddenly ok to assist everyone who got in over their head?  Tax breaks, will that create new revenue?  I support providing free moving trucks to anyone who wants to return to Mexico, and taxing the heck out of the ultra-rich.  Anyone who needs a job should enlist in the military, or quite complaining about being unemployed.  There, cross that out too.

Feb 09, 2009 01:30 PM #10
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
311,669

Brian Brady

858-777-9751
Ask me a question
*
*
*
*
Spam prevention

Additional Information