Another of San Diego’s Finest Neighborhoods, Carmel Valley. Here Is The Scoop -Rina Podolsky San Diego Exclusive Properties_ Carmel Valley Homes For Sale

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Carmel Valley is a community in San Diego county that has become one of the prime Neighborhoods for many reasons, from its privileged location just a short distance from the beach, it’s top ranking schools and it’s easy freeway access. It has fared better than many local areas through the Real Estate market ups and downs and continues to be a very sought after place to live.

• LOCATION

Carmel Valley is bordered to the north by the North City Future Urbanizing Area (NCFUA) and Pacific Highlands Ranch; to the south by Los Peñasquitos Canyon Preserve and Torrey Hills; to the east by Pacific Highlands Ranch and Del Mar Mesa; and to the west by Interstate 5 and Torrey Pines. Nearby is the Torrey Pines State Preserve, where one of two stands of the endangered Torrey Pine is found to occur.

While many people in the area are now referring to the entire 92130 zip code as Carmel Valley, the actual boundaries of the community remain unchanged from the original community plan. The remainder of the 92130 zip code is filled by the surrounding communities of Del Mar Mesa, Pacific Highlands Ranch, and Torrey Hills.

Original Carmel Valley Area Map

• HISTORY

The earliest inhabitants of the area are believed to have been the earliest settlers in the region. There have been some artifacts found along the Carmel Creek area that are said to belong to this Native American tribe, confirming their settlement in the area, however, little is known about their life in this region.

Later in time, around the 1800 to 1900 the area was known as “Cordero” in it is where we find “Ranchers” it is thus known as the Rancho Period. The main activity in the region was producing and trading cattle hides and tallow. This was immediately followed by a period of agriculture became the main trade. At this time in history, we had the California Gold Rush going at full swing and some of these gold rushers did come to settle in the area, among those settlers we had the McGonigle Family who acquired  2,040 acres of what is today known Carmel Mountain preserve. It was then that the area became known as “McGonigle Valley.

Around the 1890’s the sisters of Mercy came from San Francisco down to the region. When they established themselves in the area they gave medical care to the McGonigle family and established a dispensary in 1000 acre parcel of land that they purchased from the same family. They also established a dairy farm and a vegetable garden. They also built a three story Victorian home that has played different roles through out time, it played the role of housing orphans, dispensary for the nuns and that is what later became Mercy Hospital, it later became a private home and horse ranch and most recently, after the Carmelites land was divided in two by the passing of the 56 freeway in the middle of their land, the home became property of the Chabbad center and it is currently on sale. The other half of the property houses a Church and burial grounds.

This nuns  from the Carmelite order and were instrumental in naming the area when they named a mountain “Carmel Mountain” and their ranch “Carmel Mountain Ranch” after it. That is how the area got it’s name.

Sisters of Mercy Victorian House

However in 1975 the area was mapped out and a plan was established it was named the “North City West Master Plan” and the name of the area was changed to North City West.

Construction in the area began in 1983 and by that time the original name had stuck to the region and so in 1990 the local planing board change the name back to Carmel Valley. The area is designated with the 92130 zip code.

Today Carmel Valley has grown to include surrounding areas such as: Torrey Hills, Del Mar Mesa and Pacific Highlands Ranch.

• SHOPPING + ENTERTAINMENT

As of Today there are 3 main shopping Areas.

The largest is Del Mar Highlands Town Center It includes fast food restaurants such as Mc Donalds, El Pollo Loco and Rubio’s,  it also has Red Robin, Sammy’s Pizza and Champagne bakery, Starbucks and Chuao chocolatiers. It is divided in upper and lower level and houses some clothing boutiques, Gepetto’s Toy store,  an Aveda and a Barnes & Noble book store. It houses two major groceries stores, Ralphs and a Jimbo’s which is a more natural and organic store. This shopping center included the Carmel Valley Ultra star movie theaters, however they ar currently close for remodel and will re-open sometime this summer.

There is another shopping center called Piazza Carmel  It is a smaller plaza that includes Souplantation, Villa Capri a Vons grocery store, some boutiques and banks. Across the street you will find a Shell Gas station and a Pat & Oscar’s restaurant.

The other shopping area is  Torrey Hills Shopping Center located in the southern part of Carmel Valley, this plaza is the most recently built but it is also the smallest one, it has a Vons groceries store as well, Starbucks, an italian restaurant three banks and the Carmel Valley office of Windermere Exclusive Properties.

The Scoop is that there will be 3 more shopping areas built in Carmel Valley, 2 of them are expected to be big shopping centers. One is located on the corner of Del Mar Heights and El Camino Real right across of Del Mar Highlands Town Center and construction is expected to begin soon.

The other major shopping area that is expected to be built is in the Pacific Highlands Ranch Neighborhood, it is said that it will include some major department stores but no word yet on which ones or when it will be built.

Finally, in the corner of Carmel Mountain and Carmel Country, Pardee is building a new community, part of the land, the south-west corner of it to be precise, is designated to be commercial/retail, No word yet what stores will be there but it is a much smaller space.

There is also a little known secret, here is the Scoop there is an Organic Farm right in the middle of Carmel Valley called Sea Breeze Farms

Also coming to the neighborhood we have 3 restaurants opening their doors in 2011, all of the in Del Mar Highlands town center. Rimel’s Rotisserie, The Counter which will be a burger place, Searsucker a great downtown restaurant is also working on opening up a new restaurant as is Swirls, a yoghurt ice cream store.

The movie theater will re-open with a new concept of VIP theaters where patrons will be able to reserve their seat ahead of time and there will be drinks and dinner served to your seat.

There are many excerisze places that go from yoga and pilates studios to full out sport centers. There are 2 in particular that are worth mentioning:

Pacific Athletic Club – One of San Diego’s  finest sports resorts.

The Training Club – An innovative, high energy, and fun workout facility, totally committed to creating exercise programs for groups and individuals.

 

• REAL ESTATE MARKET

There are currently 230 Homes listed as Active

Here is a brief chart of the current listing statistics

out of which 160 are Detaches homes 70 are attached

There are 33 homes showing as contingent (this is a recently added status that means an offer has been accepted by the buyer and an approval is being negotiated with the bank in the case of a short sale)

There are 62 homes in escrow or listed as pending

In the past 30 days there were 35 homes that Sold here is a chart to view the stats of past months sale

out of those 35, 22 were detached homes and 13 were attached

There are 224 properties in the public records list of homes in some stage of Foreclosure, you can search foreclosures here

In general this area has fared very well thru the Real Estate market downtown.

You will be able to find many different communities within the area and prices go from $205,000 to $7,980,000 but the average sales price is around $1,ooo,000. If you want to look for homes in this area be sure to check out this site

• SCHOOLS



ELEMENTARY

There are 3 main School District operating in the area as far as elementary schools go.

Solana Beach School District

Solana Highlands: 3520 Long Run Drive; Office: 858.794.4300, Fax: 858.794.4350, CDC: 858.794.4377

Carmel Creek: 4210 Carmel Center Road; Office: (858) 794-4400, Fax: (858) 794-4450, Absence: (858) 794-4451, CDC: (858) 794-4477

Solana Pacific: 3901 Townsgate Drive; Office: (858) 794-4500, Fax: (858) 794-4550, CDC: (858) 794-4577, Absence: (858) 794-4551

Del Mar Union School District

Ashley Falls: 13030 Ashley Falls Drive; voice 858.259.7812, fax 858.259.1828 Carmel Del Mar: 12345 Carmel Park Drive; voice 858.481.6789, fax 858.481.7418

Del Mar Heights: 13555 Boquita Drive, Del Mar, CA 92014; voice:858.755.9367, fax:858.509.1412 Del Mar Hills: 14085 Mango Drive, Del Mar, CA 92014; voice: 858.755.9763, fax: 858.755.6107 Sage Canyon: 5290 Harvest Run Drive; voice: 858.481.7844, fax: 858.481.7949 Torrey Hills: 10830 Calle Mar de Mariposa; voice: 858.481.4266, fax: 858.481.0344 Sycamore Ridge: 5333 Old Carmel Valley Road; voice: 858-755-1060 Ocean Air: 11444 Canter Heights Drive; voice: 858.481.4040

Poway Unified School District

MIDDLE SCHOOL

Both Solana Beach and Del Mar Union school districts merge when it comes to upper grades but Poway remains separate. We have:

Carmel Valley Middle School 3800 Mykonos Lane 858-481-8221

Earl Warren Junior High 155 Stevens Street, Solana Beach, CA 92075 858-755-1558

And Poway Unified School District

HIGH SCHOOL

Torrey Pines High School 3710 Del Mar Heights Road 858-755-0125 (Torrey Pines High School Foundation)

Canyon Crest High School 5951 Village Center Loop Road 858-350-0253 (Canyon Crest High School Foundation)

And Poway Unified School District

Only a very small section of Carmel Valley falls into the Poway School District designated boundaries and most people don’t even know that this is the case, so make sure you confirm that the home you are considering moving into falls into the boundaries of the school district that you are looking for. All of the schools in the area have received top rankings you can check the scores in this CA state website

You will also find Private schools in Carmel Valley:

San Diego Jewish Academy Upper School (grades 6-10) 11860 Carmel Creek Road voice (858) 704 3770 fax (858) 704 3771 Lower School (grades K-5) 11860 Carmel Creek Road voice (858) 704 3761 fax (858) 704-3701 Cathedral Catholic High School 5555 Del Mar Heights Road 858-523-4000 Notre Dame Academy pre-school to 8th grade 4345 Del Mar Trails Road 858.509.2300 thesisters@ndasd.org

Del Mar Pines (grades K-6) 3975 Torrington Street San Diego, CA 92130 858-481-5615

If you have any other questions about Carmel Valley, would like any additional information or want information in any of the surrounding areas please feel free to contact me at : info@SanDiegoExclusiveProperties.com

 

 

A year in review. 2010 San Diego Real Estate Market Analysis -Rina Podolsky Carmel Valley Homes For Sale-

Here we are once again at the close of a year. I find it helpful to look back and see how the Real Estate Market in San Diego, specially in the areas where I do most of my business trended. I am sharing with you a very brief summary of the Real estate Market of homes that sold in Carmel Valley, Del Mar, La Jolla, Rancho Santa Fe, Solana Beach and Coronado. I am hoping you find it useful or at the very least interesting. In a future blog post I will be talking about the Real Estate Forecast for 2011.

• CARMEL VALLEY 92130

Sold Homes :

Detached

# sold 411

Price:

High: $5,100,000    Low: $522,000   Average: $1,026,345

Price per S.F:

High: $573.03             Low: $221.07      Average: $337.78

Selling Price vs. Asking Price :  Average 96%

Days on Market: Average 51

Attached

# sold 256

Price:

High: $712,000  Low: $198,100 Average: $408,806

Price per S.F:

High: $447.76             Low: $251.91      Average: $339.13

Selling Price vs. Asking Price :  Average 97%

Days on Market: Average 68

Most Expensive Home Sold in Carmel Valley in 2010. Sale price was $5,100,00

• DEL MAR 92014

Sold Homes :

Detached

# sold 93

Price:

High: $8,000,000    Low: $685,000   Average: $1,726,665

Price per S.F:

High: $2580.65             Low: $241.63      Average: $637.40

Selling Price vs. Asking Price :  Average 93%

Days on Market: Average 101

Attached

# sold 44

Price:

High: $1,850,000  Low: $182,500 Average: $534,783

Price per S.F:

High: $1.013.22             Low: $248.80      Average: $437.55

Selling Price vs. Asking Price :  Average 97%

Days on Market: Average 68

Most Expensive Home Sold in Del Mar in 2010

• LA JOLLA 92037

Sold Homes :

Detached

# sold 254

Price:

High: $10,000,000    Low: $100,000   Average: $1,337,000

Price per S.F:

High: $1,550.39             Low: $221.07      Average: $619.74

Selling Price vs. Asking Price :  Average 92%

Days on Market: Average 96

Attached

# sold 276

Price:

High: $5,950,000  Low: $175,000 Average: $648,893

Price per S.F:

High: $1,574.07             Low: $206.55      Average: $439.66

Selling Price vs. Asking Price :  Average 95%

Days on Market: Average : 80

Most Expensive Home Sold in La Jolla in 2010. Sold for $10,000,000

• RANCHO SANTA FE 92067

Sold Homes :

# sold 174

Price:

High: $9,575,000    Low: $650,000   Average: $2,470,799

Price per S.F:

High: $907.41             Low: $152.85      Average: $430.21

Selling Price vs. Asking Price :  Average 90%

Days on Market: Average 151

Most Expensive Home Sold in Rancho Santa Fe in 2010. Selling Price was $9,575,000

• SOLANA BEACH 92075

Sold Homes :

Detached

# sold 90

Price:

High: $4,550,000    Low: $499,500   Average: $1,241,699

Price per S.F:

High: $1,481.60             Low: $239.59      Average: $537.09

Selling Price vs. Asking Price :  Average 95%

Days on Market: Average 88

Attached

# sold 75

Price:

High: $1,600,000  Low: $195,000   Average: $637,313

Price per S.F:

High: $1,074.75             Low: $201.48      Average: $426.29

Selling Price vs. Asking Price :  Average 95%

Days on Market: Average 64

Most Expensive Home Sold in Solana Beach in 2010. Sale price was $4,550,00

• CORONADO 92118

Sold Homes :

# sold 225

Price:

High: $10,500,000    Low: $479,900   Average: $1,452,743

Price per S.F:

High: $4,506.07             Low: $246.44      Average: $728.82

Selling Price vs. Asking Price :  Average 92%

Days on Market: Average 119

Most Expensive Home Sold in Coronado in 2010. Sale price was $10,500,000

If you want any more information on the data shown here or how to best use and interpret this information, feel free to contact us. You can reach us thru our web site www.SanDiegoExclusiveProperties.com where you can also search for all the listings and foreclosures available in San Diego.

Wishing you a happy healthy 2011!!!

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How You Can Transfer Your Lower Property Tax Basis To Your New Home -Rina Podolsky -Carmel Valley Real Estate Homes For Sale

For some people, the idea of buying a NEW HOME sounds appealing. They have their finances in order, qualify for a loan and have the Down Payment ready to go, but if they purchased their current home many years ago, they might end up paying a much higher property tax, and that might be stopping them from going forward with the purchase. For example, lets say a couple purchased a home in Rancho Santa Fe in 1995, they might have paid $800,000.00  and now they want to sell their Rancho Santa Fe property and  buy a home in Del Mar. The new home has a price of $1,500,000.00 and their current home will be selling for $2,500,000 so even though they are downsizing the property tax that they will be paying on the new house is almost double of what they are currently paying.

There are two Propositions in the state of California that allow you to transfer your current tax base to your new property, those are prop 60 and prop 90.

Now there is a catch, actually more than a catch there are several restrictions in order to qualify for either one of this propositions.

1. One of the owners must be 55 years or older at the time of the sale of the original Property

2.Both Properties have to have been or will be your principal residence.

3.The Replacement property must be of “Equal or Lesser current market value” than the original property. You are not allowed to combine two separate properties as a total value even if both of you are selling two homes to purchase a new one together.

4.The replacement property must be built (If new construction) or purchased, within two years of the sale of the original property (This may be two years before or after)

5.The owner has to complete and file an application within 3 years of the purchase of the replacement property, or new construction completion date.

This benefit can only be used once in your lifetime, unless you become severely disabled in which case there is a different exemption that applies (Proposition 110).

So what is the difference between proposition 60 and Proposition 90?  Proposition 60 allows the tax transfer benefit only within the same county(intracounty). Whereas Proposition 90, will alow  transfers from one county to another county in California (intercounty) It is however at the discretion of the county to allow such transfers. Not all counties will accept applications for this proposition and you are required to fill out a form and follow a process, this transfer will not happen automatically.

For more detailed information you can go to the California Board of Equalization Web Site http://www.boe.ca.gov/proptaxes/faqs/propositions60_90.htm#2 or ask your trusted CPA or Real Estate Lawyer.

For any other questions or comments please feel free to contact us at www.SanDiegoExclusiveProperties.com

How is the Market? Understanding The Case Schilling Report – Rina Podolsky Carmel Valley Homes For Sale-

As a real estate agent I often come in contact with people who ask me, How is the market? followed by a statement, I just saw the latest report saying…. Although some people do get the idea behind what the numbers show, often times they have either taken that information to be a prediction or have trouble understanding what the numbers really mean. What they really want to know most of the time is;  is it the right time to buy? should I sell my home now or wait a bit? Is it the right market to invest?  So I thought I share with all of you a glimpse as to how and why you should interpret this indicators with care, specially because what happens to Real Estate in New York City is very different than what happens to Real Estate in Carmel Valley Real Estate or La Jolla Real Estate or Rancho Santa Fe Real Estate.

Case Schilling reported their numbers for the September behavior of the Market and it is calling it a “weak report” in fact they believe it is even weaker than last months report. However it is important to understand that they believe that this results are believed to be highly influenced by the end of the government’s incentive programs.  I believe this numbers were to be expected, many of the people who were ready to buy, did so in time to take advantage of all the government credits and incentives, pushing the number higher for several months. Another fact that might have influenced the numbers is the fact that the interest rates have been going down and people keep hearing of a new wave of foreclosures, and a possible second dip in home prices and because they have no time concerns after the credits expired, many people have gone back to sitting on the fences and waiting to have a clearer picture of how the market will be trending.

Another important fact to take into consideration is that Case Schilling is reporting what has happened in the past few months, since this report came out, there has been some better than expected numbers from different indicators, Wall Street broke to pre crash levels, unemployment has started to shift, the government has said it will be pumping 600 million to re-invest , consumer confidence is higher than expected and so are the results of gains of many of the large corporations.

I would like to point out that if you look at the graph, you can see that the 20 city index shows that the market is up above 2003 price levels. ” From their peak in June/July of 2006 through the trough in April 2009, the 10-City Composite is down 33.5% and the 20-City Composite is down 32.6%. Through September, they have recovered by +7.2%and +5.9%, respectively. The peak-to-date figures through September 2010 are -28.7% and -28.6%,respectively.” 

Lastly, Case Schilling is a snapshot of the country, taken from 10 or 20 cities, it is important to understand that each market behaves differently. For example, if you look at the local San Diego market, you see that it actually is showing a 5.0% GAIN from the 2009 levels, not a loss by any means and if you take it a step further you can see that even within San Diego, you have to look at each area separately, some have had bigger gains, some have shown a steadier path through the whole crisis and some have shown some losses in the last months. This is why it is very important to know what you are looking at and be careful when you interpret any charts or information to make decisions based on them. Be sure to always ask an expert.

If you would like to see more detailed information you can go to:  http://www.standardandpoors.com/servlet/BlobServer?blobheadername3=MDT-Type&blobcol=urldocumentfile&blobtable=SPComSecureDocument&blobheadervalue2=inline%3B+filename%3Ddownload.pdf&blobheadername2=Content-Disposition&blobheadervalue1=application%2Fpdf&blobkey=id&blobheadername1=content-type&blobwhere=1245262947491&blobheadervalue3=abinary%3B+charset%3DUTF-8&blobnocache=true

Please feel free to contact us for any questions or you can go to our web site www.SanDiegoExclusiveProperties.com

our facebook page : http://www.facebook.com/?sk=messages&tid=457977665291#!/group.php?gid=123662939207

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Least Expensive Homes For Sale in Carmel Valley, San Diego -Rina Podolsky – San Diego Exclusive Properties-

I Have compiled a list of the Homes for Sale in Carmel Valley, including all neighborhoods such as Torrey Hills, Ashley Falls, Pacific Highlands Ranch, Etc. and selected the ones with the lowest price per square foot.

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Here is a quick Snapshot of the “Homes for Sale  market” in Carmel Valley, 92130 area.

There are:

• 164 Detached Homes for sale listed on the MLS as of today.
  • Lowest asking price per SF is $226.13. Highest is $812.79 which leaves an average selling price of $380.81
  • Lowest Priced Home is$535,000. Highest Priced Home is $7,695,000. Average price is $1,528,565

• 81 Attached homes for sale on the MLS.
  • Lowest asking price per SF is $283.16. Highest is $431.45 which leaves an average selling price of $354.97
  • Lowest Priced Home is$189,500. Highest Priced Home is $739,900 . Average price is $434,396.

Within the 92130 zip code, there are 3 school districts as far as elementary schools go. 2 for High School. Most homes in Carmel Valley are zoned for Del Mar School USD)  or Solana Beach School District (SBSD). Leaving only a few homes that are within the Poway School District designated Boundaries.

The homes within the Poway school District area, have been selling for less than those zoned for either of the other two Districts.

The homes that I have selected today are those that fall within the boundaries  of DMUSD or SBSD. And they have been selected for their asking price per S.F. Plain and simple.

Click on the pictures to display more detailed information on each of these homes.

1.

Santa Barbara Short Sale @ $252.17 per s.f.

2.-

Short Sale in Senterra @$277.13 per s.f

3.-

Rural Carmel Valley @ $278.27. Home built in 1905

4.-

Short Sale in Portico @ $280.32

5.-

Short Sale Watercolors @ $288.86

6.-

Watercolors @291.71 per S.F.

7.-

Torrey View @ $296.36 per S.F.

8.-

Seabreeze Farms @ $297.85

9.-

San Raphael @ $298.90

10.-

Bank Owned Stone Canyon @ $302.84

11.-

Belmont Short Sale @ $304.75

12.-

Breakers Short Sale @ $304.79

13.-

Short Sale in Rancho Pacifica @ $304.17 per S.F.

Even though the last home is not the least expensive one per S.F., this is a true SCREAMING DEAL! It is a Custom made home while most of the other homes in the area are what you call Track Homes, it is inside a very exclusive Gated Community.

If you want any information on any of these homes or on the trends of the local market, please contact us by going to our web site at www.SanDiegoExclusiveProperties.com we will be happy to answer any questions you might have.

If you want to make an appointment to view this or any other homes or if you would like to get together and talk about the value of your home please call us and we will arrange it.

In Foreclosure… Not Everyone Is There to Help -Carmel Valley Real Estate- Rina Podolsky

 

I was recently at an appointment with a homeowner who wanted to sell his home in Carmel Valley. For people familiar with the 92130 zip code in San Diego, it is an area that has held its value very well through the whole market crash and beyond. Which in turn means that we have less Short Sales than in many other areas in San Diego County and that also has translated into a market where Foreclosures are not as common widespread. Having said that, I do have to say that there are several homeowners that find themselves in a tough situation, and need to make a decision on what to do.

Some of this homeowners will sit down with me or other Real Estate professionals trying to get an idea of what their options are. At this point a reputable professional, will advise them to first talk to their lender, try to work something out and also will ask them as many questions as possible regarding their current situation, their short, medium and long term plans, their wants, their needs. This helps not only the  person asking the question but the homeowner who is forced to go through the excercise of prioritizing and looking at the big picture.

Unfortunately, it is not entirely uncommon for people at this stage to do one of two things after a meeting with a Real Estate professional.

The first one, is for them to still ignore the problem and continue pretending like something will happen that will make things ok at the end. In this case I sometimes get contacted by them when it is imminent that they won’t be keeping the home. Sometimes we can still do something but we are so much more limited at that point and that is if we can help them at all.

Or the second situation that happens and it pains me as well, is that I get a call back a couple of days later saying that they have not called their bank yet but it is ok because they have found another option. While doing research on the computer they found a company that is guaranteeing they will save their home and solve their problem. Or something along those lines. Here is where I want to be very clear. I am ok with people using other reputable Professionals, I want them to succeed in their aim of solving their problem in the best way possible. However (yes and this is a big one) The are SCAMS galore out there pertaining to Foreclosure aid. If they are promising something that sounds to good to be true…you know the rest.

Now being a homeowner in distress you have heard this before yet how are you supposed to know who is legit and who is not. Why waste a good chance when it can turn out to be a true saving grace? right?

Here are just a few pointers to be aware, if you come across any of these, please, STOP, and do a lot of research or actually, just stop altogether and go somewhere else for help.

The following list was compiled by Brian Olenik from Corinthian Title who has spent ample time researching this matter.

• Anyone asking for a fee in advance, before providing any services
• Instructs you to stop making mortgage payments to the lender and instead start paying into an account that he will set up for you. It might be under his own name or someone else other that yours.
• Instructs you not to contact your lender, lawyer or consult with any of the people you trust in regards to this matter
• Requires payment only in the form of cash, cashiers check or wire transfer.
• Advises you to transfer your property deed or title to his or her company
• Fills out paperwork themselves without allowing you to fill it out.
• Encourages to lease your house and says you will be able to then buy it back at a later date.
• Requests something to be done immediately and without delay. This includes pressuring you into signing something that you do not fully understand or have not had a chance to read, or are not sure you feel comfortable with. In many of this cases, time IS of the essence, but some hours or one day to go over paperwork carefully are time well spent, not wasted.
• Offers to buy your house at a fixed price that is not set by the housing market at the time of sale.
• Requests you to give power of attorney
• Requests signatures in a grant deed or deed of trust.
• Request signatures in forms that are not completely filled out.
• Refuses or fails to give promises or commitments in writing.
• Promises that no matter what the circumstances are, he will be able to stop the foreclosure.

 

These are the most common types of scams that are currently happening, and although there are others not listed here, the main thing is to keep a level head, try to think things through, many of these scammers are amazing at getting people to trust them, they have explanations of why and how to most questions yet disappear two days after they have gotten what they wanted from you. This is the time when you want someone to help you look at thing from a clear perspective. Run it by someone you trust before committing to anything.

There are a few places where you can go for help.  You should go to the HUD web site www.hud.gov there you will find valuable information on scams and foreclosures as well as a list of approved agencies.

There is also a special line created to guide and help homeowners , it is the Homeownership Preservation Foundation their number is 1-888-995-HOPE.

If you do come across a situation where you feel you are being a victim of a scam, you can contact:

California Attorney General  http://ag.ca.gov

California Department of Real Estate www.dre.ca.gov

Department of Housing and Urban Development  www.hud.gov

Federal Trade Commission  www.ftc.gov

Your local Better business Bureau www.bbb.org

You can always start by talking to a trusted Realtor or Real Estate lawyer of your choice, they should be able to help you figure out what your options are and steer you in the right direction and in most cases they will do this as a free consultation, we certainly do this for any of our clients.

Please feel free to contact me even if you are not in the state of California I  help guide you towards someone who is reputable in your area.

You can contact Rina and Sergio by going to our web site at www.SanDiegoExclusiveProperties.com and clicking on the contact us button or on any of our social media links.

But please remember, the sooner you take action the better your chances of having choices.

Now What? The foreclosure halt and its consequences explained

First it was GMAC halting foreclosures in 23 states, then JP Morgan Chase said it will delay the process of more than 56,000 foreclosure proceedings and from there all the way to Bank Of America announcing last week that it was pausing foreclosure proceedings in all 50 states while they review the process and paperwork for “defects”.

Today it was announced that California will be joining a task force created as a multi-state inquiry into foreclosures.

All this comes when it seemed like foreclosures where starting to ease up.

But what is this latest crisis all about. What is it that the banks are corned with at this point of the game?

Lets start by a quick explanation of the life of a mortgage .

Once a mortgage is created, it does not usually stay with the bank or institution that originated it. Mortgages will change hands several times through its life span. When a mortgage gets sold and changes hands the new owners have to get an “assignment”  from the buyers. An assignment is a document signed by both buyer and seller acknowledging the sale of the loan, this note has to be attached to all other documents and delivered to the new owner.

It gets a little more complicated from here. Many mortgages are the “securitized” this means that it get pooled in with a a large number of other mortgages by an investment firm and becomes part of a pool of mortgages that will be sold off in slices to different investors as an investment vehicle. Then someone is assigned with being the one in charge of properly dividing the money that comes in from the monthly mortgage payments and also of foreclosing on the ones that have stopped paying. This person is called the “servicer” . When a mortgage is securitized, what happens to the note, who gets the note? Neither the investor nor the servicer gets this note or assignment, not even the investment vehicle has the assignment, instead they go to a repository company and the transfer is noted in an electronic base.

So where did the break down occur? well, at the height of the mortgage wave, Notes were coming in at such a fast pace and paperwork was not being filed, revised or monitored. This was the barely -doc to no-doc era and so paperwork was more of an afterthought in many cases and this lack of concern went from the origination of the loan all the way to all the transfers.

Making matters even more complicated is the  fact that some of the institutions went under or were acquired by larger ones.

You might ask, how does dis impact the foreclosures and why if that had been happening for all this years, why the halt now?

Well, there were warning signs and some people did raise their concerned voices but they were not paid attention to, probably because the crisis  and the bubble burst seemed so large and that was the main concern, so it was until  Jeffrey Stephan a loan officer for GMAC admitted in a deposition to the signing of about 10,000 foreclosure proceedings per month for five years straight without reviewing the paperwork properly, that serious cracks in the process were revealed in a very public way that caught so many people’s attention and brought forth a probe into  GMAC (Ally) foreclosure proceedings starting a chain reaction to other banks since Jeffreys signed foreclosures for other institutions as well.

Initially the halt was done in 23 states that had what is called Judicial foreclosures. This means, that their foreclosure process, requires the lender to go through a court process and file a claim and turn in the appropriate paperwork which includes  a sworn and notarized affidavit of a loan officer and submit the mortgage documents.

Often, however, judges will issue foreclosure orders without the mortgage documents so long as the borrower doesn’t contest this point.Once the do this the get the court approval to move ahead with the foreclosures.

As I said not all states require this, some states, like California, do not need to get a court approval in order to complete a foreclosure. So the first states where the pause was enacted where those where the bank had to initiate a court process and had been required to turn in paperwork which in many cases was nowhere to be found, so how could they have foreclosed with court approval without all of the paperwork in order?

In many cases the foreclosures were not contested by anyone and so in those cases the banks went ahead and foreclosed even with the missing assignment documents, but in some other cases there are allegations of banks  and evidence has been produced to show that notarizations have been faked, documents forged.

Even though the situation looks worse in judicial states because there is forgery that was sent to court involved, this dies not exempt the other states from misdoings so, that is why the halt was extended in many cases to all 50 states.

In many cases, the notes do exist it will just take a big effort to find them and complete this files propperly. So this might sound like it is simply a case of paying to much attention to a paper trail. However, the fact that all this got through the banks, that there are allegations of forgery and in many cases there simply are no notes or assignments, this has the potential to become a huge mess.

There is lawsuit written all over this one from so many sides that it will look like lawyers playing fields.

Homeowners who have been paying their mortgage regularly are wanting to make sure the one they are paying actually owns the note, and if it turns out they don’t, well they will be suing for money paid to an institution that had no rights. Now there are those who properly securitize the loan and did not get the assignment note, they are looking into lawsuits from investors because tis bonds usually include a representation and warranties that the bank has obtained all documentation related to the mortgages included in the loan.

Without going into detail on this one, there is also a problem between senior and junior liens, and when the froze the foreclosure process, senior leans are responsible to pay junior liens some money even when the mortgage is not bringing in any, until this mortgage is foreclosed, so this puts senior liens in a delicate position.

And then, what happens if a note is never found? who owns that mortgage? Is the homeowner free and clear? who is he supposed to make payments to? If they stop making payments, who will have the right to foreclose?

Now let’s take it a step further. What will happen with all those people whose home was foreclosed and sold? If they come after the bank and actually prove that the foreclosure was improperly done? Their home was already sold, there is a new owner who might be facing a legal battle he did not sign up for.

Finally, if this situation takes a year to correct, once the halt is lifted, we will find ourselves with a wave of foreclosures that had been accumulating instead of slowly coming into the market at a regular pace, how will this new flood be absorbed by a weakened market?

 

 

Since the news on this one broke I have also been hearing some homeowners not currently in default that are not happy to hear that so many people will be living rent/mortgage free for a year (or two) while they are doing things correctly.

We should be paying attention to this one closely!

How to buy a Short Sale….Succesfully Carmel Valley Real Estate

In past posts we have talked about the different type of sales, covering Foreclosures, Short Sales, Deed in Lieu, and regular Sales. However we have done so from a seller’s perspective mainly.

I very often work with buyers and in this market, most people who initially approach me to help them find and purchase a home, will bring up the idea of snatching a great Short Sale for them to purchase at an amazingly discounted price. Some of them will have already heard some of the horror stories of people waiting months on end for the bank to approve the sale, yet many have no idea what it really implies and all the emotional and labor intensive process that a short sale can be. As an agent, a very important part of my job is to prepare my clients to what lies ahead, so when any new client approaches me, I ask them to give me at least 20 minutes of their time just so we can go over what I consider the ABC’s of buying : 1) A Short Sale  2)Foreclosure  3)Regular Sale. Only after they have heard what each of them entitles will we come up with a specific search plan for them.

So when it comes to the Short Sale portion, there are basically 6 points that I consider crucial for them to understand and be aware:

First, The timeline is what we call a moving target, it is NOT set in stone and will shift as we move along, so if they are in a situation where they have a set date by when they have to be living in their next home, short sales might not a good choice. Banks are taking anywhere from 60 to 130 days average to approve a short sale. Although some lenders like World Savings have set up faster programs where they are able to approve a short sale in as little as 7 days, and then on the other end of the spectrum I have seen others take as long as 9 months to approve a short sale, specially in the higher end loans where the bank will be forgiving a considerably higher amount of  debt.

Second, although it varies greatly in each case, I have seen a trend lately of banks not covering closings cost of a short sale and most of the time they will not pay for money owed to the Home Owners Association So it will be up to you as the buyer to bring some extra cash to the table and cover those extra expenses, this sometimes makes that initial price you offered and got an acceptance on, not such a great deal after all. Be very careful that you ask all the  necessary questions before you open escrow, have the listing agent disclose to you what the bank has agreed to pay for as soon as they know and most of all, ask them if there are any back payments to the HOA, any other liens, back taxes, etc.

Third, Don’t assume that because it is not a foreclosure the home will be left in good shape. Many of the short sales will have delayed maintenance issues, some will come up during the inspection face, and some will come out a little while after living in the home so it is highly advisable to buy a service insurance policy at least for the first year after purchase. Also, you will need some extra cash to fix up the property once you buy it, it is a house that has been lived in and that will need some repairs.

Fourth, Don’t fall in love with this property, an acceptance of your offer does not mean it is yours. Although your chances of buying this home did increase by getting an acceptance, it still has to go thru a long approval process and then there is the pending auction date you have to beat, many people assume that since the bank has approved the short sale, that means that they have cancelled the foreclosure proceedings and that the home is now ready to close. Sadly, one is independent of the other, sometimes the bank will grant you an extension on the auction date just so you can close a sale however more and more lately, banks have started to be less agreeable to grant extensions, they will allow one but no more than that and they WILL sell it in auction two days and even one day prior to the closing escrow date, so be very vigilant of those auction dates and if there was an extension on the auction date, make sure that it has gone into effect.

Fifth, On a typical transaction you have 17 days to complete all of your inspections before you are required to remove your contingencies, in many short sales situations, since ironically you are running against the auction date clock and some times because the bank has requested it so, you only have 5 days to do all your inspections, so make sure you have all your inspections ready to go in a moments notice as soon as you open escrow and know beforehand what you are willing to accept and what will make you pull out of the deal.

Sixth, Expect to be making offers along with people who are looking for investments and are all cash. If a short sale is looking like it is a good deal, there will be some competition so make sure that along with your agent you know how to write an attractive offer that will increase your chances of getting accepted. There are some key points that banks and therefore listing agents are looking at to select the offer that will get the house.

Probably right about now you are ready to give up on short sales altogether, however, the fact is that many of the homes that are for sale in today’s market, are short sales and they will be around for many years to come still, so it is not the best idea to discard any short sales as an option unless you are really pressed for time. Short Sales are a reality so it is wiser to learn how to deal with them and what to expect, it is also smart to have an experienced agent guiding you to the process and even better yet if there is a solid qualified short sale negotiator dealing with the short sale part of the process, one that knows exactly how to deal with the specific bank that holds all of the loans on this property and that has a proven track record of succesful closings. Be aware that sometimes, the agents will have NO information from the bank for a long period of time, so bear with them but stay on top of it.

The one thing that I tell my clients is to keep their emotions in check and to keep looking, hope for the best but don’t close your options just yet. Once you are in escrow and have a clearer picture you can stop actively looking but don’t start mentally placing the furniture just yet…keep a clear head and be realistic that this deal might not happen.

And last, please, whatever you do, DON”T make any big purchases that will disqualify you or affect your income debt ration making your own loan a new issue to deal with, this sometimes only comes up at the eleventh hour when there is not enough time to correct it, so help and don’t hurt your chances when you are trying to close an escrow on a short sale.

Update: Del Mar Union School District being sued

Just as an update to my last post regarding the DMUSD inner turmoil. Since I last wrote that post, The previous Superintendent has filed a lawsuit against the school district for breach of contract.

Sharon McClain, The previous Superintendent for DMUSD was fired on March 13 with “cause” However she nor the public were told what such cause was. The Districts Board only said that it was a personnel matter and could not be addressed in open session. However, since then they have not addressed it, not even after McClain’s lawyers sent them a letter requesting to know the cause for her termination. That letter did not receive a response from the District So now McClain is suing the district for a years salary and other monies owed to her.

The current School Board is up for re-election in two months and McClain’s lawyers said they are going to wait for the new board to step in to take this matter any further, since they believe the new members will be less personally invested in the matter and maybe they will be able to reach a more amicable and less costly agreement.

McClain was the second Superintendent to be terminated without explanation in the past few years.This has been very costly in a time where money is being cut from education and donations are harder to find. This has caused a large discontent toward the current Board amongst School district parents, many of them who used to be much more willing to support the district through donations have either cut back or stopped doing so because they feel their money is being wasted due to the mismanagement of this board instead of the money going toward the children and their education.

New Real Estate practice “Private Transfer Fees”

When purchasing a new construction home directly from the builder, you go through a different process than when you buy a home as a re-sale property.

Even in this market, where builders are trying to come up with incentives to sell their properties at  a faster pace, they are still the ones calling the shots on most of the terms of the transaction, specially when it comes down to the contract and legal terms to be used.

In most cases this is understandable, it cuts legal cost, makes the process simpler and cleaner. However, you as a consumer should not take for granted that everything you are signing is standard and acceptable. There is for example a “Flip Tax” that some developers are attaching to some properties.

What is the Flip Tax?  It is also called a Transfer tax and how it works is, you buy a house, when you try to sell it some years later, it turns out you have to pay a 1 percent to the builder of the home. This fee is written into the Rules and Regulations of the neighborhood and will remain in place for 99 years. During those years, every time this property is sold, the seller is required to pay the builder that 1 percent fee. What it really is, it’ a private Transfer Fee.

Transfer fees are not entirely new, they have been in place for a while however they traditionally would go to a charity or to a Homeowners Association to be used for the maintenance or beautifying of the Neighborhood. What is entirely different in this case, is that the money goes back to the pockets of the developer as profit.

Who came up with this concept is a company originally from Texas called Freehold Capital Partners. They are selling the concept to developers all across the country, and they are taking it one step further. The idea is to bundle this  properties and sell the revenue they promise to investors, giving the building company’s some upfront cash.Acording to their calculations each home will have a 5 percent income from future transfer fees.

The way Freehold is selling this concept is by claiming that just like an author has monetary rights to their creations, so do the builders since they have created a beautiful home. According to Jennifer Hiller from express news, Freehold’s predecessor, Freehold Licensing actually attempted to sell this concept some years ago to independent homeowners. She said that on their website they wrote,“Maybe you planted a tree, added on a room or re-habed a home,” the Web site said in 2007. “Fifty years from now, when a family is enjoying the property that you improved, and making a profit by selling the property you improved, why shouldn’t you benefit? Of course you should.”

So far there has been some effort to legislate this type of fee. Four states: Florida, Missouri, Oregon and Kansas have all banned such practices, other states such as California have imposed some limitations, Freehold has found a way to go around some of this limitations. 

Critics say such fees could taint entire neighborhoods, making it difficult to sell homes, and could complicate title records for decades. If the fee is not paid by the seller, a lien is placed on the property and the title becomes muddy. This coul mark the neighborhood as hard to sel and there is the possibility of some legal action from some of the owners against such builders, if that happens this could also affect the chances of a potential buyer finding a loan for such property.

Bottom line is, make sure you read what you are buying into, never assume that what you are signing has been reviewed and will protect you just because it has been signed by everyone else. And if you are not finding this clause in what you are reading, you should also ask the salesperson out right to make sure it is not there.