Coastal Real Estate and Lifestyles

I took these pics on one of my recent walks around the neighborhoods. Enjoy.

The housing crisis solution is, at least, two-pronged:
1) decrease the number of Notice of Defaults (NOD) by doing loan modifications for responsible homeowners.
2) reduce the number of homes that are foreclosed upon already.

Both lay primarily on the shoulders of the banks.  This idea addresses the second issue.

The Ford Foundation, through a consortium of non-profits, is planning to assist in stemming the number of foreclosures that banks are still holding (i.e. not yet listed, sold, or otherwise absorbed).  It’s called the National Community Stabilization Trust.  The Wall Street Journal reports,  “The trust aims to serve two main functions. It is courting major financial institutions — including J.P. Morgan, Bank of America Corp. and GMAC Financial Services — and negotiating discounted prices on foreclosed homes before they are listed.”

If the Trust successfully negotiates to remove the “toxic” assets from the banks’ books at a discount without the associated costs of putting them on the market, then the non-profits may be in a better position to buy and then refurbish the properties associated with those loans to improve their communities’ affordable housing needs.

It seems like the same Foundation also funded loan modification efforts beginning last summer - is it helping?

If you think this doesn’t affect our little community because we have very few foreclosures, think again.  As long as there are large numbers of foreclosures on lenders’ books, from whom our local buyers are hoping to fund their dream coastside property, lending guidelines will continue to be very tight, and property values will continue to be suppressed.

As of today, ForeclosureRadar.com shows 11 bank-owned properties between Pescadero, Half Moon Bay, El Granada, Moss Beach, and Montara.  23 in Pacifica.  331 in all of San Mateo County.  For pre-foreclosures, there are 52 between Pescadero, Half Moon Bay, El Granada, Moss Beach and Montara.  106 in Pacifica.  1,875 in San Mateo County.  Below are bank-owned properties in the San Mateo County coastal communities that are currently listed in the MLS:

 Map-based search of current San Mateo County County Coastside bank-owned listings.

My friend, a local Half Moon Bay Coastside resident, sent this invitation to me yesterday…so I’m passing it on to you with her permission…

“Friends, As many of you know, I’ve been volunteering for a wonderful organization, One HEART.  Their mission is simple - to save the lives of woman and children, one birth at a time.  Ten years ago, when One HEART began working in Tibet, it was estimated that 1 in 33 women died in childbirth and 1 in 10 children died within the first month.  In 2008, for the first time ever, there were no maternal deaths and newborn mortality decreased from 10 to 3% in One HEART’s target areas.  This is an astounding achievement.
 
The Tibet Autonomous Region has one of the highest maternal and infant mortality rates in China.  The geography is difficult, transportation is sparse, poverty is prevalent and the health care system is weak.  In addition there are deeply held cultural beliefs surrounding pregnancy and childbirth that often result in women delivering alone, in the barn or outside, without sterile equipment.
 
Because of their success, One HEART has been asked to expand into 3 more countries.  So, here’s why I’m writing… My good friend Dee Harley is hosting an afternoon with One HEART at Harley Farms Goat Dairy in Pescadero.  It’s a lovely setting, wine will flow freely, great food will be served and a tour of the farm will be given.  Arlene Samen, One HEART’s founder, will be there to share her stories, dreams and visions.  The goal of the afternoon is to raise awareness and donations for the cause.  Don’t let the donation part scare you, for as little as $55.00 you can save a life by gifting a sterile birth kit.  This is a wonderful opportunity to help save this indigenous culture, one life at a time.
 
Below is the invitation.  Space is limited so if you can come, please RSVP.  And feel free to pass this along to friends if you think they would be interested. I hope you will join me.”

The number to call for a reservation is 801-596-3317.

This is for single family homes only, for the entire central Coastside - Half Moon Bay, El Granada, Moss Beach and Montara.  It does not include Pacifica or Pescadero.

I’m only showing closed sales instead of pendings (sales under contract).  Buyers are out there writing offers, the Realtors are busier than ever, it’s just harder to close transactions.  The going may be tough right now, but the tough are going strong!  Trust me, the people involved in this year’s sales to date celebrated getting theirs accomplished.  I suspect many, if not most involved in those deals felt like it was one of the hardest things they’ve done in a while, but worth it in the end (kinda like planning a big wedding?)…  Congratulations if you were one of them.

Related recent Coastside Market Activity articles:

Half Moon Bay Inventory Higher This Year

Coastside New Listings vs Sold Listings Trend

It seems like buyers and sellers ought to know about a new rule affecting appraisals…which may affect values differently…which may affect loan approvals…which may affect loan contingency timing, loan lock timing, and possibly even successful escrow closings. 

The Home Valuation Code of Conduct (HVCC) goes into effect on May 1, 2009 for all Freddie Mac and Fannie Mae loans.  I haven’t heard too much about it yet, but I expect I will in the next several months.  This post from Matrix provides a interesting overview.  So just consider this a heads up at this point so you’re aware that appraisal procedures for your refinance and home purchase will be changing.

As pointed out in the RESPA Lawyer Blog, “Consumers and state & federal regulators need to watch very carefully to see what impact the new HVCC rules will have on the real estate home buying and refinancing process.”

 As a buyer, your offer strategy could include discussion with your Realtor about the pros and cons of adding in a separate appraisal contingency.  Pro-active measures would call for paying attention to whether the appraiser knows the local market or not, when the appraisal is done, getting a copy, reviewing it for accuracy, asking questions if anything doesn’t make sense, and discussing what the results mean for any future negotiations and, of course, a successful close of escrow.  Again, each transaction is different, so that’s for you and your Realtor to understand and implement the best strategy for you and that particular property.

 If you have additional information about this, please share.