Approximately 14,500 homes were in the process of foreclosure throughout San Diego County as of October 18, 2010. Yet of those foreclosures in process, only around 1,000 (7%) are listed for short sale whereby the owner settles the debt with their bank. This means that 93% of these San Diego homes will foreclose within the next few months and their owners may suffer the negative impacts for nearly 7 years.

The reasons why home owners choose foreclosure over a short sale are varied but can largely be grouped into three categories:

• Owners unaware of alternatives: The current housing market is complicated; and media, banks, and the Government are often confusing the details. This group of homeowners effectively throws up their hands, unable to make sense of the conflicting messages.
• Owners in denial: this group doesn’t open letters from their bank or simply waits for a (non-existent) safety net from the U.S. Government.
• Owners angry at their bank: tempers run high, especially from those who have attempted a lengthy modification or believe that their bank should simply lower their principle. They feel that the bank is unfair and choose to fight—yet there are no winners here.

Few home owners in these three categories perform the critical due diligence steps to avoid foreclosure. Emotions are allowed to take over rational thinking much too often.

Making matters more ominous is that the investors of delinquent loans are squeezing the banks and loan servicers to expedite foreclosure procedures and timeframes. This means that delinquency and foreclosure proceedings will no longer be a way to get “free rent” in the near future.

The media has reported that banks are reevaluating their foreclosure procedures but this is only to make sure they are prepared to handle the new directive to streamline their foreclosure process.

The end result will be that foreclosures will be executed much quicker and delinquent home owners will need to be more proactive in considering alternatives to foreclosure.

Foreclosure statistics for selected cities in San Diego County

North County’s Brian Flock to mark anniversary of a massive “client relocation effort” at the 2010 “Carlsbad 5000”

On the spring day in question just a few years ago, Flock was taking pictures of a piece of land for an investor when thousands of new home seekers suddenly approached him, “as if it were out of a black cloud in the sky,” according to Flock.
The thousands of honey production workers literally descended on and clung to Flock beginning at his head and descending down his torso to his thighs. (Later Flock was to learn that these unexpected guests were of the genus, Apismellifera scutellata, more commonly known as “killer bees.”)
Not completely aware of the intentions of the visitors draped from head to thigh, Flock decided to stay completely still for several minutes. Yet with the language differences between Flock and the new home seekers—who merely made a deafening buzzing sound—he could only surmise that they were looking for a new home. The regular pinch of the stinger from one of the guests convinced him that they were in a hurry to accomplish this task.

Realizing that his original investor client and the listing agent were of no assistance given the sheer numbers of the impatient home seekers covering his body, Flock had the presence of mind to take pictures of this unprecedented event (as his camera was still in his hand when they arrived). While taking pictures he marveled at the irony of how a seemingly simple real estate task could become a matter of life and death.
 

Within an hour Flock had single-handedly relocated the thousands to a much more suitable home environment, complete with a flowering cactus garden in a very private area where they could peaceably live on flower nectar. Although appreciative of the opportunity to successfully help so many, Flock expresses a sense of relief to be done with the task.
 

Having been delayed to such an extent, Flock ran with haste in a virtually disrobed state back towards the listing agent and his investor client (who ultimately bought the property). All were notably incredulous of the claims of his experience until they viewed his wounds and the resulting photos. They were further convinced when hundreds of the swarming home owners followed them to their car, but all persons decided that they had no time for a final farewell.
 

The task was so arduous and resulted in upwards of 150 venomous stings which ravaged his soft muscle tissue and required emergency treatment for the exhausted Flock. Yet he looks back on his most difficult dual agency task with a degree of nostalgia.
 

“After finding a home for thousands of killer bees plus an regular investor on the same day,” noted Flock “, it’s no wonder that I find it quite pleasant to help the good folks of San Diego County.”
 

ABOUT BRIAN FLOCK

Brian Flock developed a special connection with San Diego and Baja California, Mexico since first visiting in 1973.
In 2002, he began his move out of hi-tech marketing in Silicon Valley and into real estate in the greater San Diego area. Brian holds an MBA; a BS/Computer Science and Statistics; and an associate’s degree in Real Estate
He regularly applies practical and analytical skills to the needs of sellers and buyers, utilizing dozens of Internet and wireless technologies to serve his clients’ needs.
A regularly published columnist on real estate topics since 2006, Brian was also the land acquisition broker for Punta Brava, home of Tiger Woods’ future oceanfront golf course.
Brian is fluent in Spanish and further serves the region’s vibrant Hispanic community.
An “amateur anthropologist of irony,” especially since his killer bee experience, Brian’s reveals the fascinating business of local real estate while providing insightful advice to buyers, sellers, and real estate contemporaries.
 

Brian may be reached at brian@flockdreamhomes.com , Flock Dream Homes (www.FlockDreamHomes.com ), or (760) 271-8761.

By Brian Flock (Mexidata.info)

Mexican President Felipe Calderon, while visiting Baja California on March 9, pledged incentives to attract international filmmakers and productions to Rosarito Beach (Playas de Rosarito).  The president implemented the “Program to Support the High-Impact Cinematographic and Audiovisual Industry,” which is designed “to once more attract large movie productions to the Rosarito area and the rest of the country.”

Speaking to an audience of about 400 people, Calderon pledged an initial US$20 to $40 million to strengthen the country’s film industry, plus incentives to attract productions from around the world.  Major movie productions will be given financial incentives through a 7.5% cash reimbursement for proven local expenses that firms incur in Mexico, plus international investments will have an incentive of up to 17.5% in reimbursement of expenses for productions costing at least US$5.5 million.

“The federal government has proposed taking the necessary measures to give a fresh impetus to the high-range audiovisual and cinematographic industry in Mexico, through programs it is supporting in this marvelous renaissance of Mexican cinema, this second Golden Age it has experienced during the first decade of the 21st century,” the president declared.

“I am sure that the age-old magic, culture, imagination, history and talent of our country will provide the ideal framework for producing successful, unforgettable films and, at the same time, provide work and a decent income for Mexico’s young creative talents, and give work to actors and movie workers in our country,” he said.

Calderon made his remarks at Baja Studios in Rosarito Beach (formerly Fox Studios Baja), which was built for the production of James Cameron’s “Titanic” and where portions of other blockbuster movies, including “Master and Commander” and “Pearl Harbor,” have been filmed.

The president was received by Rosarito Mayor Hugo Torres. Other dignitaries attending included Baja California Governor Jose Guadalupe Osuna Millan and additional government officials.

Actors Edward James Olmos and Diego Luna were featured guests. Other attendees included Punta Brava developer Brian Tucker and The Baja Blondes, a new American lifestyle reality show troupe who live and work in Rosarito Beach.

“Rosarito has become a place of great importance for the film industry, [which] is precisely why it is here we announce this program for the promotion of film production,” Calderon said. He stressed that the film industry has great importance in the global culture, plus it is an excellent source for jobs, income and regional promotion.

“Rosarito has shown that it is possible to offer world-class services to the film industry,” Calderon said. “Productions here have brought international fame to the city.”

Rosarito Beach has been particularly hard hit by the economic downturn and by day-tripper negative perceptions of security issues based on U.S. media reports. The town, meanwhile, has registered a 21% reduction in crime as a result of various law enforcement improvements and crackdowns.

For his part, Mayor Torres reiterated the importance of promoting the film industry. Torres noted that film production can be a key to the area’s economic recovery as well as a boost for tourism.

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Brian Flock, a MexiData.info contributor, is a licensed California real estate broker, as well as a degreed and certified broker in Mexico. He may be contacted at Flock Dream Homes (www.flockdreamhomes.com), brian@flockdreamhomes.com, or (619) 793-5224.

Clocks change in unison for the first time since 2007

Two years after the 1994 North American Free Trade Agreement (NAFTA), Mexico adopted the daylight savings time of its northern neighbors, the United States and Canada. After years of tangled schedules and manufacturing challenges posed by differing schedules, the occurrence of Daylight Savings Time (DST) had finally took hold of virtually all of North America.
Fast forward to 2007 when the US government voted to implement an “energy savings” plan which effectively added another month of DST each spring. The result was chaos at the border in light of up to four weeks in gaps between the schedules of the two countries.
In the words attributed to former Mexican President Porfirio Díaz (1830 –1915), “Poor Mexico, so far from God and so close to the United States!”
After thirteen years of relative coordination, Mexico (and more particularly Border dependent on commerce) was thrown into a confusing clash of the clocks.
Commuters from Mexico to the US (who already had the challenge of the morning border crossing) suddenly had to arise more than an hour early due to the tangled mess. Day-trippers and vacation home owners from the US found their favorite haunts closed for breakfast or found themselves late (or early) for appointments. Even tourists on cruises and flights found confusion at the docks and airports of the Mexico’s interior.
 

For Mexico, the change raised a conflict between practicality and sovereignty. State and local leaders at the border clamored for adoption of the new schedule. However, Federal-level arguments ensued that the US DST change was a simply a trial and could just as easily go back to original standard.
 

Then in December 2009, Mexican Federal authorities voted to reconcile the Mexican schedule with the US and Canada for border towns. (Tourists on cruises and flights to the interior of Mexico will have to wait until April 4!)
 

Thus San Diego and Tijuana spring forward together for the first time in three years.
 

Yet the question remains: after all of this commotion, is anyone saving energy?
 

About the Author

Brian Flock is a licensed California broker (01870163), as well as a degreed and certified broker in Mexico. He is a realtor and a member of both SDAR and AMPI Rosarito. Mr. Flock may be contacted at Flock Dream Homes, brian@flockdreamhomes.com , or (619) 793-5224.

Brian Flock to service Bank of America’s Cooperative Short Sale program in San Diego County

The Bank of America program—currently in Beta but expected to be launched formally in April 2010—utilizes the online Equator platform (formerly known as REOTRans). Equator provides 24×7, automated handling of short sales.

Bank of America distressed loans that have not qualified for loan modifications by the Home Affordability Foreclosure Alternative (HAFA) program will be handled by the Equator platform.

Platinum certification on Equator ensures that Brian Flock is skilled at handling the electronic filing of paperwork required for Bank of America’s Cooperative Short Sale program.

Additionally, Brian utilizes his computer knowledge, marketing skills, and real estate experience to minimize the impact of the sales process on distressed home owners. He makes sure that the transaction is handled with sensitivity and in the least invasive way possible for the transitioning home owners.

Qualifying home owners may even receive relocation assistance under the HAFA program.

Brian was also one of the first REALTORS in the nation to be certified in 2009 as a Short sale and Foreclosure Resources (SFR).

Home owners with distressed Bank of America loans may contact Brian directly at (619) 793-5224 or may visit his Web site dedicated to the Bank of America Cooperative Short Sale program by clicking HERE.

According to a January 16 report in the North County Times, the FHA has announced a one-year reprieve from the administrations “anti-flipping” to start in affect on February 1, 2010.

The anti-flipping rule was instituted in 2004 as an attempt to prevent FHA loans from getting caught up in speculative buying by FHA-backed borrowers. Yet at the time, FHA loans comprised a miniscule percent of the loans in the market and only prevented a few hundred FHA loans a year.

Now FHA loans represent approximately 28.1 percent of all loans in San Diego County according to real estate data firm DataQuick.

 The abundance of housing demand in the current distressed housing market has been a source of much frustration, particularly for first time buyers looking to use an FHA-backed loan in order to take advantage of the first-time buyer’s $8,500 tax credit. The tax credit, which was already extended once, is widely expected to end for contracts not signed before April 30, 2010.

Until February 1, 2010, only cash and conventional loan borrowers have been able to purchase homes that had been foreclosed by investors. This left FHA borrowers with good credit yet with limited funds no ability to make offers on those homes.

The exact affect of this suspension is uncertain with continued demand for the homes by all cash buyers and conventional loan buyers who usually put down at least 20% on their purchase. FHA borrowers normally only provide 3.5% down and additional FHA “health and safety” rules can make investor asset managers wary about contracting with FHA borrowers.

However, the suspension will be welcome for buyers and the real estate community that represents them.

Time will tell if the suspension translates into more sales of foreclosed and distressed properties to FHA borrowers during February, March, and April when the first time buyer credit ends.

For more info: Brian Flock may be reached at brian@flockdreamhomes.com, (619) 793-5224, or www.FlockDreamHomes.com. NEW! Get a FREE home search phone app for GPS enabled smart phones by texting FLOCK to 87778 or by visiting http://www.SanDiegoSmarterAgent.com

by Brian Flock

Special guests on the show included three US citizen real estate professionals: Larry French, Roy Warfield, and Brian Flock. The three are realtors, with two of them practicing in both San Diego County and Mexico.

The relative strength of the dollar and US retiree desires for coastal living have caused many to consider real estate south of the United States border, in Mexico. Yet controversy invariably touches this southern neighbor, particularly over the past few years.

The conversation in its entirety can be heard at the following link:

http://www.zshare.net/audio/695529041000bde9/

December 6 – KOGO AM 600 radio program to cover facts and myths of life in Mexico

Real Estate Today, the weekly on-air talk show sponsored by the San Diego Association of Realtors (SDAR) and hosted by SDAR president Erik Weichelt, will address facts and myths about real estate in Mexico on Sunday, December 6, 2009 from 9:00 am to 10:00 am on KOGO AM 600 radio. A live online simulcast also will be available at the following web address: http://www.am600kogo.com/mediaplayer/?station=KOGO-AM&action=listenlive&channel_title=

Special guests on the show will include three US citizen real estate professionals: Larry French, Roy Warfield, and Brian Flock. The three are realtors, with two of them practicing in both San Diego County and Mexico.

The relative strength of the dollar and US retiree desires for coastal living have caused many to consider real estate south of the United States border, in Mexico. Yet controversy invariably touches this southern neighbor, particularly over the past few years.

Topics will include the state of the “Baja Boom”; the war on drugs; legal distinctions between the US and Mexico; health care and costs; details about property ownership in Mexico; and expectations for the future.

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Brian Flock, a contributor to www.MexiData.info, is a licensed California broker (01870163), as well as a degreed and certified broker in Mexico. He is a Realtor and a member of both SDAR and AMPI Rosarito.  Mr. Flock may be contacted at Flock Dream Homes (www.flockdreamhomes.com ), brian@flockdreamhomes.com , or (619) 793-5224.

First time home buyers in San Diego get $8,000, others up to $6,500

US Senators yesterday voted yesterday to approve bill HR 3548 which was primarily intended to extend unemployment benefits. However, as with most bills, a variety of other legislation was bundled in the bill including an anticipated extension of the first time buyer tax credit and extensions of the credit to certain, existing homeowners as well.
Although President Obama has line item veto rights on the tax credit, official positions of the White House have generally been supportive and industry lobbyists have been working hard to press forwarding on the extension. The House may approve the bill as soon as today.
Ergo, this is fully expected by most experts to become law very soon.
 

First time buyers
The extension of the tax credit for first time buyers (i.e. those who haven’t owned a home in at least three years) is fairly straightforward.
Instead of a November 30 deadline for real estate closings, the new law would allow for purchase agreements as late as April 30, 2010 and closings as late as June 30, 2010 for the maximum $8,000 credit.
Maximum income limitations have been expanded making the program available to even more buyers. Individuals may now make up to $125,000 and married couples may have income of up to $225,000. (Higher income individuals may receive reduced credits.)
Existing home owners
As for existing home owners that have been in their home for at least five years of the last eight years, they will be eligible for a $6,500 tax credit with a maximum home price of $800,000. This provision is intended to spur home upgrade purchasing for those who are still likely to have some equity in their homes.
Military personnel from San Diego
Members of the military who have served overseas for at least 90 days between January 1, 2009 and May 1, 2010 will receive one year extensions on the credit deadlines.
Tax payers who complete a transaction in 2010 but before their 2009 tax filing deadline will have the option to apply the credit to their 2009 taxes instead of their 2010 taxes.

For more info: Brian Flock may be contacted at www.flockdreamhomes.com , brian@flockdreamhomes.com , or at phone  (619) 793-5224.