New Tax Credit for First-time Homebuyers Available
(July 30, 2008) A $7,500 tax credit is now available for any qualified purchase between April 8, 2008 and June 30, 2009, as part of the Housing and Economic Recovery Act of 2008.
Avoiding Predatory Lending
Protect Yourself in the Loan Process
Don't fall prey to predatory lending!
If you are in the market for a new loan to purchase real property or a loan to refinance an existing mortgage, the mortgage market place offers numerous types of loan products. Being knowledgeable about the loan process will help you find the most desirable loan product and avoid the pitfalls of predatory lending.
About Predatory Lending
The term "predatory lending" encompasses a variety of home mortgage lending practices. Predatory lenders often try to pressure consumers into signing loan agreements they cannot afford or simply are not in the consumers' best interest. Often, through the use of false promises and deceptive sales tactics, borrowers are convinced to sign a loan contract before they have had a chance to review the paperwork and do the math to determine whether they can truly afford the loan.
Predatory lending practices specifically prohibited by law include:
- Flipping - the frequent making of new loans to refinance existing loans,
- Packing - the selling of additional products without the borrower's informed consent, and
- Charging excessive fees.
Homeowners in certain communities, particularly the elderly and minorities, are especially likely to be targets of predatory lending but almost anyone can fall prey to abusive lending practices. You can protect yourself by knowing what you can afford; choosing a reputable, licensed broker/lender; understanding the loan application and contract; and being aware of commonly-used predatory lending tactics. Informed decision-making is your best defense!
Choose a Reputable, Licensed Broker/Lender
- A good way to find a reputable broker and/or lender is to ask family members and/or friends who will not gain personally to refer you to brokers and/or lenders they have used satisfactorily.
- Be aware of salespersons who approach you with offers that sound too good to be true.
- Prior to using the services of a mortgage broker or lender, make sure they are properly licensed by checking with the California Department of Corporations and/or the California Department of Real Estate.
Beware of these Predatory Lending Tactics
- Exceedingly high interest rates and inflated fees in comparison with other lenders.
- Bait and switch tactics where a mortgage broker or lender knowingly offers one set of terms which are more appealing but are not readily available and then pressures the borrower into signing a contract with more expensive terms and hidden fees.
- Door-to-door high pressure salespersons and pitches for home equity loans related to home improvement contracts or contracts for the installation of items such as drapes and carpets.
- Salespersons with backgrounds similar to yours who attempt to gain your trust. This tactic is oftentimes used to lull a homeowner into a false sense of security, causing the homeowner to make a decision based on trust instead of knowledge and understanding.
- Mail, radio and television ads that claim "No job! No credit! No problem! You can still qualify for a loan based on your home equity." These ads encourage you to place your home at risk. If you can't make the payments, you will lose your home! Offers that sound too good to be true, usually are.
- High-pressure sales tactics requiring you to sign a loan contract right away. If the offer is good today, it should probably be good tomorrow, AFTER you have reviewed the contract and have consulted a knowledgeable, uninvolved adviser.
According to the DataQuick report for home sales in San Diego County, the downward trend is continuing.
Some areas, however, are showing some stability. Several communities in North County Coastal and Central San Diego had increased average sales prices over September. This data compiled thanks to Diane White--Windermere Exclusive Properties
Click Image for Report
Most changes involve areas noted below:
• Carlsbad N • Carlsbad SW • Carmel Valley • Solana Beach • Clairemont • Hillcrest • La Jolla
• Mission Valley • North Park • Pt. Loma • Sorrento Valley • Tierrasanta • UTC
November sales per Sandicor which include listings in the MLS only and include just Detached and Attached Resale homes show that 2,389 went into Pending/Escrow with a slightly higher average listing price of $367,107.
Current statistics as of December 9th show (again resale detached/attached homes):
- 15,525 Active Listings with an average Listing Price of $729,868
- 5,664 are in Pending/Escrow with an average Listing Price of $370,591
What areas have the most activity? Following is the breakdown:
North County Central/Inland
- 4,230 Lisitngs with Average L/P $568,103 - 1,503 in Pending with Average L/P $362,975
South County
- 3,832 Listing with Average L/P $809,209 - 1,529 in Pending with Average L/P $383,310
Metro Central/Uptown/Downtown
- 2,870 Listings with Average L/P $451,583 - 1,056 in Pending with Average L/P $300,349
North County Coastal
- 2,677 Listings with Average L/P @ $1,413,000 - 685 in Pending with Average L/P $590,176
East County
- 2,095 Listings with Average L/P @ $338,600 - 903 in Pending with Average L/P $274,569
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