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Category Archive: ‘Encinitas’

Subprime is Back

John South of Drop Mortgage and George Flint of Triumph Capital wait for waves off Encinitas. The group of mortgage industry professionals meet weekly on the beach for a morning surf before work.

From the wsj.com

An excerpt:

Lenders say there is an untapped market among borrowers with good credit scores like self-employed workers who don’t have proper income documentation, or for responsibly made loans to borrowers with credit problems that have had bankruptcies in the past or had to sell their home for less than it was worth.

If they are successful in recruiting brokers, lenders believe the market potential for both types of loans could reach $200 billion annually.

A big hurdle: finding the right kind of brokers and instructing them in the lost art of making a subprime loan. Some are returning to the industry for the first time since the crisis. Others like Mr. Boyd have never been in it.

“I knew a mortgage was a loan for a house,” said Mr. Boyd, who was recruited by his boss, Jon Maddux, after selling him a Calvin Klein suit at a local outdoor mall. “I came in just a blank slate.”

Before he co-founded Drop Mortgage, the parent company of FundLoans, in 2014, Mr. Maddux ran the website YouWalkAway.com between 2008 and 2012. The site charged homeowners on the brink of foreclosure $995 to learn how to leave their debt behind.

Mr. Maddux said his experience advising down-and-out homeowners is today helping him pitch them loan products. Drop Mortgage and FundLoans made about $200 million in subprime and alternative documentation loans in 2016, funding them by selling them to hedge funds and other Wall Street investors.

“I’ve seen what caused these people to walk away and I don’t want to be a part of that,” he said.

Subprime mortgages are typically made to borrowers with a credit score of around 660 or lower, at interest rates ranging from 6% to 10%. Alternative documentation loans, or Alt-A loans, are made to borrowers with higher credit scores but who use bank statements or other less conventional ways to prove their income.

Read full article here:

LINK

Posted by on Jun 14, 2017 in Encinitas, Jim's Take on the Market, Market Buzz, Mortgage Qualifying, Sellers Waiting For Comeback, Strategic Defaults | 4 comments

Co-Living

o-site

Hippie communes from the 1960s are coming back in many alternate forms, and there are already several options. The U-T featured Outsite, an AirBnb-type of company but for workers who desire temporary living arrangements in exotic areas – including a block from the beach in Encinitas.

From their website http://outsite.co/blog/:

The foundation is laid for co-living: this type of accommodation is not a trend or fad that is going to disappear in a few years. Between the plethora of providers currently offering co-living spaces in every corner of the globe, and the massive interest that residents from all professional backgrounds and lifestyles show, co-living has appeal and support that will help establish it as a unique but valuable form of accommodation. Residents may stay anywhere from a few days to a few months, but the concept of co-living has a permanence that will last for years to come.

Co-living solves many of the problems that entrepreneurs, freelancers and remote workers face, such as finding quality space on short notice with minimal commitment. At the same time, co-living provides the added benefits of community, focus and inspiration.

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Posted by on Oct 24, 2016 in Encinitas, Jim's Take on the Market, Market Conditions, The Future | 6 comments

Zillow 2017 Forecasts

2017-la-jolla

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It’s that time of the year – the 2017 forecasts are starting to roll out!

Zillow has been conservative about our local markets.  For the most part, the actual appreciation of the Zillow Home Value Index has been higher than their forecasts over the last two years.

Their local forecasts for 2017 are all lower than their 2016 guesses, and what they are predicting could also be described as ‘Flatsville’.  If their local forecasts of +0.9% to +2.2% come true, it would mean that several sellers would end up selling for less than they could have gotten in 2016.

Are we ready for that yet?

Local ZHVI-Appreciation Forecasts

Town
2015 Forecast/Actual
2016 Forecast/Actual
2017 Forecast
Carlsbad
+2.7%/+4.8%
+1.9%/+3.8%
+1.3%
Carmel Valley
+0.3%/+5.4%
+1.4%/+1.9%
+0.9%
Del Mar
+5.5%/+1.1%
+1.4%/+2.6%
+1.1%
Encinitas
+0.6%/+8.3%
+2.4%/+6.3%
+2.2%
La Jolla
+2.7%/+6.6%
+2.3%/+6.1%
+2.1%
RSF
+0.4%/+11.1%
+3.7%/-0.5%
+1.9%
San Diego
+1.7%/+6.4%
+2.1%/+4.0%
+1.7%
Solana Beach
+2.7%/+6.4%
+2.2%/+2.6%
+1.4%

The Zillow data changes slightly, depending on where you look on their website, and whether you use town names or zip codes. Here is the LINK to find others.

encinitas-2017

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Posted by on Oct 17, 2016 in Carlsbad, Carmel Valley, Del Mar, Encinitas, Forecasts, Jim's Take on the Market, La Jolla, Rancho Santa Fe, Solana Beach, Zillow | 0 comments