'Foreclosures & Short Sales' Category
Some Benefits From The Real Estate Bust -2009
December 28th, 2009 Categories: Brookside Escondido, Escondido, Foreclosures & Short Sales, Market Trends, Real Estate News
It’s always nice to get a different perspective on the events of the last couple of years, and one that I respect is that of my CPA, Jim Vander Spek. Jim has written columns for the North County Times for years, and recently posted an article about some of the benefits that have come out of the current market conditions. So, with permission from the author, here is Jim’s take on the Escondido real estate markets courtesy of Jim and the North County Times… 
The ongoing real estate bust with its foreclosures and drop in home values has created difficult problems for many. These have been discussed a great deal with the hope frequently expressed that prices will again rise. However, the news is not all bad. Let’s consider some benefits from the real estate bust:
Prices are down for newcomers. People are picking North County over other places in the country because it has again become affordable. My parents moved into a foreclosed Escondido home in 1965 during a similar bust. This allowed us to escape from Canada to paradise, for which I have been thankful ever since. San Diego County is a great place to live. Of course, we now have a much more diversified economy than way back then. I know of two young professional families who picked Escondido over many options because it looked like a great town and was affordable as well.
Prices are down for young families. They don’t have to move to Arizona anymore. Stopping the outward migration of young families is vital for the long-term health of our economy. We are seeing young families buying homes and setting up their lives here instead of some far away place. Let’s keep the grand kids here. Other places don’t look all that great anymore. Staying here, they can help us become even better.
Unqualified buyers no longer qualify. People are not creating impossible and inappropriate debt obligations. Further, homes are no longer being purchased with the intent to create vastly overcrowded communal habitats. Those which were purchased with this intent are rapidly being foreclosed upon and vacated.
This is great for neighborhoods and gives relief to community services as well.
Few recent massive tracts were built in North County. These are a bane elsewhere. Our healthy inventory of suddenly affordable housing stock is spread around and represents a tremendous economic asset for North County. It’ s not as though we are talking about boarded up neighborhoods.
Foreclosures provide an economic boost. Many are choosing to skip house payments for eight months or more and then end up paying half as much for rent going forward. What about the poor banks that are hurt by this? Oh well, they have good friends in Uncle Sam. Besides, they should never have made those loans to start with. Maybe they will be more careful next time.
California is a non-recourse state for purchase money mortgages, so the legal and tax consequences of such “strategic foreclosures” are often minimal. A recent Wall Street Journal article said that households abandoning mortgages are adding $5 billion a month to their cash flow, representing a “stealth stimulus.” North County is sharing in that.
McMansions lose appeal. Who needs a 3,500 square feet house to live in any way? Excess living rooms and bathrooms you could park your car in never made any sense. Who wants to pay the taxes, upkeep and utilities? People are again properly starting to look at houses as places to live instead of as unreliable, highly leveraged investments. Hard earned cash can be spent on more useful things and to accomplish important life cycle goals.
Jim Vander Spek is a certified public accountant and Escondido resident.
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VA Zero-Down Loan Limits Reduced For 2010 In San Diego County
December 23rd, 2009 Categories: Foreclosures & Short Sales, Mortgage News, VA Loans
The Department of Veteran’s Affairs (VA) announced that the maximum zero-down VA loan limit for 2010 is being reduced from $593,750 to $437,500 for San Diego County. Remember that VA loan amounts exceeding $417,000 are considered VA Jumbo loans.
Other areas, such as Los Angeles and Orange Counties, will have maximum zero-down loan limits as high as $593,750 whereas much of the San Francisco Bay Area can go up to $962,500.
A veteran can purchase a home in Pitkin County Colorado up to $1,094,625 with zero down payment. Click here for a complete list of areas with limits greater than $417,000.
Qualifying veterans can still purchase higher priced homes in San Diego County with significantly lower down payments than with Conventional financing.
Assuming the veteran has full entitlement, he/she may purchase a $450,000 home with as little as $3,125 down which is less than 0.7%. A $550,000 home can be purchased with as little as $15,625 down which is only 3.125%. Click here for examples for additional prices.
Please remember that the entire down payment can be a gift.
Whether you are a VA, FHA, or Conventional buyer, please email me: Kevin@MyCWMtg.com with any questions.
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September California Foreclosure Report
November 8th, 2009 Categories: 4S Ranch, Brookside Escondido, Escondido, Foreclosures & Short Sales, Poway, Rancho Bernardo, Rancho Penasquitos, San Diego, Search Foreclosures, Search San Diego Foreclosures, bank owned
Courtesty of our friends at Foreclosure Radar, read the September California Foreclosure report below. Forclosure Radar is the preimmenent source of forclosure data in the industry.
September California Foreclosure Report
NO SHADOW INVENTORY OF BANK OWNED HOMES
Foreclosure Investors Still Finding Discounts at Trustee Sale
Discovery Bay, CA, October 13, 2009 – ForeclosureRadar (www.foreclosureradar.com), the only website that tracks every California foreclosure and provides daily auction updates, issued its monthly California Foreclosure Report for September 2009. This month’s report features not only a new look, but an important new statistic – Bank Owned (REO) Inventory. By looking at the number of foreclosures the banks have taken back and subtracting those that have since resold, we are able to show the number of foreclosures the banks have held as inventory over time.
September+2009+CA+Foreclosure+Report
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September 2009 California Foreclosure Report – Watch This Video
October 16th, 2009 Categories: 4S Ranch, Brookside Escondido, Foreclosures & Short Sales, Rancho Bernardo, Real Estate News, Search San Diego Foreclosures, Short Sales, bank owned
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