bubbleinfo.com

There is something unusual here that’s never happened before in any of the previous 100+ JtR videos. Can you pick it out?

Bubbleinfo.com T-shirt to the first to catch it!

The Padres are red hot, how about another contest?

Check out this video tour, and guess how much my new REO listing sells for, and the winner will receive four tickets!

For those of you who saw the photo in the paper, and the banter on the radio about the 83-year old lady who attends every game and knits while she watches, she sits a couple of seats down from where you’ll be sitting, if you win. Don’t mess with her!

from the nyt:

MIAMI – When the woman who calls herself Queen Omega moved into a three-bedroom house here last December, she introduced herself to the neighbors, signed contracts for electricity and water and ordered an Internet connection.

What she did not tell anyone was that she had no legal right to be in the home.

Ms. Omega, 48, is one of the beneficiaries of the foreclosure crisis. Through a small advocacy group of local volunteers called Take Back the Land, she moved from a friend’s couch into a newly empty house that sold just a few years ago for more than $400,000.

Michael Stoops, executive director of the National Coalition for the Homeless, said about a dozen advocacy groups around the country were actively moving homeless people into vacant homes — some working in secret, others, like Take Back the Land, operating openly.

In addition to squatting, some advocacy groups have organized civil disobedience actions in which borrowers or renters refuse to leave homes after foreclosure.

The groups say that they have sometimes received support from neighbors and that beleaguered police departments have not aggressively gone after squatters.

“We’re seeing sheriffs’ departments who are reluctant to move fast on foreclosures or evictions,” said Bill Faith, director of the Coalition on Homelessness and Housing in Ohio, which is not engaged in squatting. “They’re up to their eyeballs in this stuff. Everyone’s overwhelmed.”

On a recent afternoon, Ms. Omega sat on the tiled floor of her unfurnished living room and described plans to use the space to tie-dye clothing and sell it on the Internet, hoping to save some money before she is inevitably forced to leave.

“It’s a beautiful castle, and it’s temporary for me,” she said, “and if I can be here 24 hours, I’m thankful.” In the meantime, she said, she has instructed her adult son not to make noise, to be a good neighbor.

‘A modern-day underground railroad’
In Minnesota, a group called the Poor People’s Economic Human Rights Campaign recently moved families into 13 empty homes; in Philadelphia, the Kensington Welfare Rights Union maintains seven “human rights houses” shared by 13 families. Cheri Honkala, who is the national organizer for the Minnesota group and was homeless herself once, likened the group’s work to “a modern-day underground railroad,” and said squatters could last up to a year in a house before eviction.

Other groups, including Women in Transition in Louisville, Ky., are looking for properties to occupy, especially as they become frustrated with the lack of affordable housing and the oversupply of empty homes.

Anita Beaty, executive director of the Metro Atlanta Task Force for the Homeless, said her group had been looking into asking banks to give it abandoned buildings to renovate and occupy legally. Ms. Honkala, who was a squatter in the 1980s, said the biggest difference now was that the neighbors were often more supportive. “People who used to say, ‘That’s breaking the law,’ now that they’re living on a block with three or four empty houses, they’re very interested in helping out, bringing over mattresses or food for the families,” she said.

from sddt.com

Resales for attached and detached homes in San Diego County were up 25 percent from February to March.  Median prices for homes sold were down month to month, with detached homes falling 3 percent to $325,000 and attached units falling 5 percent to $175,750.

According to the San Diego Association of Realtors (SDAR) on Wednesday, the 2,507 homes sold last month brought the total number of homes sold in the first quarter up to 6,922, a 53 percent increase from the same quarter in 2008.

The median price for a detached home sold in March 2008 was $440,000 compared to last month’s $325,000 — a difference of 26 percent, and 44 percent less than the median price in March 2007.

Despite the median prices being down, Tim Sullivan, President of Sullivan Group Real Estate Advisors, said the housing numbers show positive signs overall.

“Demand has been reignited,” he said.

“The good news and the most important thing is that the first stake in the sand for a turnaround is that we start to see an increase in sales. And the reason we’ve seen that is because of that continual decline in pricing.”

While an increase in home sales may take off some of the inventory on the market, last month’s record high notice of default filings in San Diego County will likely result in more foreclosures and short sales.

“In 2009, we’re going to be bringing foreclosures on almost as fast was we’re selling them,” said Sullivan.

The foreclosures are coming from a different source than people unable to pay off loans due to their mortgages resetting at high interest rates, said both Sullivan and Tony Pauker, chair of the Urban Land Institute’s San Diego Tijuana District.

“You heard all the drama about subprime and all this other stuff we’re now seeing a second bump on individual homes with the good borrowers with good credit with real mortgages are just going ‘I spent $600,000 on this home and it’s now worth $400,000? I’ve lost $200,000 of equity. Why bother?’ They’re just walking away,” said Pauker, who is also a principal at Encompass Urban Developers.

Sullivan, conversely, thinks the spike is likely due to job loss — a factor that he said will play a major role in the recovery process.

“We’re seeing foreclosures that are economically driven,” he said. “People are losing their jobs so they stop paying the mortgage.”

Job loss is the biggest threat to the stabilization of the housing market, said Sullivan.

However, he added that other factors for stabilization include consumer confidence and bringing down the amount of inventory in the market.

Many of the individuals buying lower-priced homes and foreclosures are investors.

Some market observers think investment homes paid for in all cash cannot be a true gauge for recovery.

However, some local real estate experts, like Norm Miller, have said it is possible a floor could be forming as long as there are sales.

“I can rent a place I couldn’t own before and an investor can get a good return. That’s two people who are happy,” said Miller, who is the director of real estate academic programs at the University of San Diego.

The sellers in Rancho Santa Fe have been holding strong, but there have been some inching closer to the exits, led by the banks.

First those on the outskirts:

*Amount of mortgage lent, later foreclosed

*******************************************************************

“But Jim, those aren’t the Covenant!!! There’s a difference!!!!!!!!”

Oh really? The Covenant has its own cracks in the armor:

There are 324 active listings of detached homes in 92067 and 92091, a number that has been growing all year.

Last month, TEN closed escrow!

Rancho Santa Fe sellers – you should lower your price!

(hat tip to Aztec)

In an attempt to replace the foreclosure lists that have been published in the right-hand column called ‘San Diego County REOs’, there is now access to the foreclosureradar service – click on the ‘Foreclosures’ button in the crimson-colored banner at the top of this blog site   ^^^^^^^^^^^^^

They don’t allow you to directly access the entire file, but if you find a property that you’d like to receive more information, click on the street name.  It’ll open a box for you to send in your email address, and either wifey or I will send you a printout that looks like this (click on link):

jan-terry

This printout is a property sold by what’s-her-name – note that her accomplice will probably end up with a minimum of a year’s free rent before her fate is decided.

Cross-reference these with what you find on www.fidelityasap.com and you should be able track foreclosure activity fairly closely.

Here are the number of records per area:

La Jolla = 135

Carmel Vly = 145

Del Mar = 31

Solana Bch = 45

RSF = 29

Encinitas = 170

Carlsbad = 481

Oceanside = 1,574

Vista = 892

San Marcos = 710

92127 = 234

You can figure that these numbers are probably a six-month sampling, with the bank-owneds lingering on the record for a while after the trustee sale.  There are a few others that have both the 1st and 2nd lenders filing NODs, but not many.

From Kelly Bennett, our hero!

Tuesday, April 7, 2009 | Federal prosecutors on Tuesday announced unprecedented charges against individuals involved in an alleged mortgage fraud ring involving 220 properties in San Diego County, with total purchase prices topping $100 million.

The 24 defendants were all charged with participating in a “corrupt enterprise” under a federal law created by the Racketeer Influenced and Corrupt Organizations (RICO) Act, which allows for charging multiple defendants with extended penalties for their participation in an ongoing crime ring.

This was the first known time in the country that defendants in an alleged mortgage fraud scheme have been charged in a RICO conspiracy, U.S. Attorney Karen Hewitt said today. This was the largest mortgage fraud uncovered to date in San Diego, Hewitt said.

http://www.voiceofsandiego.org/articles/2009/04/07/housing/843rico040709.txt

Stanley Gentry, a 49-year-old licensed local real estate broker, allegedly allowed the organization to use his broker’s license to facilitate the purchases, in exchange for $10,000 a month and a cut of the commissions and fees on each deal.

from News 6:

“The individuals charged in this indictment have one thing in common: greed,” said FBI Special Agent in Charge Keith Slotter. “They represent precisely those who have undermined our country’s financial system by perpetuating such egregious schemes,” he said. “The extent to which this group of people went to defraud lenders should also serve as a warning to the public. We urge people to come forward with information of suspicious activities they may encounter when engaged in real estate and mortgage transactions.”

The folks at voiceofsandiego.org have organized a free community event to discuss local market conditions.  Headlining the panel is Rich Toscano, who has gone a long stretch without doing one of these – catch him while you can!   

From moderator Scott Lewis:

All of the panelists have one thing in common: They have a deserved reputation for telling it like it is and using data and experience to expertly illustrate what’s happening. We believe that if we constantly lay out the bare facts of the economic situation, people can make the best decisions possible. And when they do that, they are able to do things like start businesses and help the rest of the community really build the kind of infrastructure needed to pull us out of this malaise.

The event is April 23rd at 6pm at Liberty Station.  Click here for more info:

http://www.voiceofsandiego.org/articles/2009/04/07/opinion/slop/141event040609.txt

If you can attend, please RSVP with Camille, whose contact info is in the article.

From today’s U-T (hat tip to Kwaping!):

ENCINITAS – After a high-profile foreclosure, the county’s largest and possibly most luxurious bank-owned home is missing an estimated $1 million worth of furnishings, from antique doors to top-of-the-line toilets.

So far, no suspect has been named in a grand theft investigation opened by the San Diego County Sheriff’s Department in March.

“It’s like a car up on blocks,” Sheriff’s Detective Steven Ashkar said. “It’s been stripped.”

The 16,000-square-foot Spanish hacienda-style house on 1.24 acres is surrounded by trees on Fortuna Ranch Road in Encinitas.

Decorated with 300-year-old doors from Egypt, carved teak pillars from Antigua, stained-glass windows, crystal chandeliers and handmade tiles from Mexico, the home cost $13 million to build and furnish. In February, it failed to sell at a bank foreclosure auction with a starting bid of $2.3 million.

Suzy Brown, an electrical engineer who built the house, reluctantly surrendered title to the bank on Feb. 13 after not making payments for more than a year. She moved out March 22.

On March 26, Capital One Bank’s real estate agent, Katie Taylor, filed a police report citing missing “doors, windows, fixtures, toilets, windows, cabinets and appliances,” Ashkar said.

The house has been controversial since Brown obtained a construction permit in 2004. She originally planned to operate it as a drug-rehabilitation center in a venture with alternative medicine physician Deepak Chopra and 60 unnamed investors.

Neighbors dubbed it the “monster house” because of its size, and complained that Brown intended a commercial venture in a residential area. They sued Brown and filed a complaint with the state Department of Corporations. While both ultimately were dismissed, construction was delayed and the Chopra Center dropped out.

The City Council tightened its zoning rules, preventing Brown from operating a rehab center or renting the home for events once it was finished in 2006.

Brown rented out some of the rooms to as many as 12 people at a time, she said.

As for who stole the furnishings, Brown said she doesn’t know.

She said she tried to secure the property by renting chain-link fencing, installing locks and pleading with the bank to hire a guard.

“The whole thing saddens me, but I’m also very frustrated,” Brown said, “because I’ve never screamed as loud or forewarned as much in person, through voice mail messages, through numerous e-mail messages, how likely a target this property was.”

“As I told the detective, this has been all over the news; what does the bank expect?”

Taylor did not return calls for comment.

Ashkar said he’s interviewed potential witnesses including Brown, her roommates and neighbors.

“I’ve been talking to quite a few people about it, and there’s a lot of speculation,” he said. “The bank owned the property and whoever did this, it’s theft.”

FROM THE PREVIOUS ARTICLE IN FEBRUARY:

Meanwhile, Brown, who designed a sophisticated computer-controlled “brain” that operates the estate’s heating, lighting, air conditioning, audio-visual systems and security, says the home’s value will plummet if she is evicted and takes furnishings with her.

“I’ve shown the property to several prospective buyers, and no one wants it empty,” she says. “It takes the life, breath and soul out of it.”

Despite having lost a fortune on the project, she is trying to keep a positive attitude and remains willing to work with the bank and with new buyers.

A good starting point for those who are thinking of buying investment properties with their IRAs:

http://www.marketwatch.com/news/story/six-reasons-buy-real-estate/story.aspx?guid=%7bD93040B6-317B-4103-9E84-2D90CAC3B8A4%7d&siteid=yahoomy#comments

From the article:

Here are six reasons why buying real estate with an IRA is a potentially lucrative and wise move today:

1. A solid alternative to stocks

2. An investment well-suited for long-term investors

3. Purchasing a significantly undervalued asset

4. A steady income generator

5. A safer means to play the stock market

6. The ability to flip real estate with no tax bite

Purchasing a significantly-undervalued asset is not easy.  There are many investors in the market currently, and the lower-end properties are selling fast and furious. 

Look at one of the hardest-hit zip codes in the country, Oceanside’s 92057, where homes are regularly selling for 50% below peak-pricing. 

This year there have been 41 houses sold that were listed under $200,000, and the SP:LP ratio is 100.16%. 

Only 14 of 41 have sold for less than list price!  They are averaging $143/sf.

For those who click on the link to the article, also check the comments section below it - heated debates on both sides, with a number of people saying it is the worst thing you could do.  We’ve mentioned here below the perils of maintaining the properties, and managing the tenants.  Proceed with caution.

(hat tip to Bryce)