He didn’t give his full support, but it’s noteworthy since more politicians are calling are giving this idea a serious look. However, the banking industry owns a lot of these people, so I wonder how far this idea will advance.
Newsom calls eminent domain plan in San Bernardino County ‘bold’
By Alejandro Lazo July 27, 2012, 4:36 p.mOne of California’s highest-ranking politicians, Lt. Gov. Gavin Newsom, has told an investor group to “back off” and allow San Bernardino County to explore a controversial plan that would employ its eminent domain powers to seize and restructure troubled mortgages.
The cities of Ontario and Fontana, in partnership with the county, are exploring using private funds to acquire mortgages that are “underwater” — that is, where the homes wouldn’t sell for enough money to pay off the loans. Under the proposed Homeownership Protection Program, the loans acquired by government authority would be restructured, lowering the amount owed, with the intent of helping the owner keep the home.
Newsom appears to be the highest-ranking California politician to speak out on the plan under consideration by the Southland communities. In an interview with The Times, he did not explicitly endorse the idea, although he said that releasing consumers from underwater mortgages would go far to help the state and national economies.
“We have got to be as bold as the problem is big,” Newsom said. Underwater homeowners are often “barely holding on and increasingly entering foreclosure.”
“This idea is bold. This idea is meaningful,” Newsom said.
Newsom told The Times that for more than a year, he has been familiar with the idea of using government power to condemn troubled mortgages and has been weighing its merits.
Remember this power has to be for the public good, that will be hard to prove.
Santa Ana Overview
| Median home price is $266,000. Based on a rental parity value of $429,000, this market is under valued. |
| Monthly payment affordability has been worsening over the last 3 month(s). Momentum suggests worsening affordability. |
| Resale prices on a $/SF basis increased from $206/SF to $208/SF. |
| Resale prices have been falling for 12 month(s). Price momentum suggests falling prices over the next three months. |
| Median rental rates increased $56 last month from $1,695 to $1,752. |
| Rents have been slowly rising for 12 month(s). Price momentum suggests slowly rising rents over the next three months. |
| Market rating = 6 |
Proprietary OC Housing News home purchase analysis 
409 East MYRTLE St Santa Ana, CA 92701
$325,000 …….. Asking Price
$325,000 ………. Purchase Price
7/22/2012 ………. Purchase Date
$0 ………. Gross Gain (Loss)
($26,000) ………… Commissions and Costs at 8%
============================================
($26,000) ………. Net Gain (Loss)
============================================
0.0% ………. Gross Percent Change
-8.0% ………. Net Percent Change
0.0% ………… Annual Appreciation
Cost of Home Ownership
——————————————————————————
$325,000 …….. Asking Price
$11,375 ………… 3.5% Down FHA Financing
3.70% …………. Mortgage Interest Rate
30 ……………… Number of Years
$313,625 …….. Mortgage
$82,574 ………. Income Requirement
$1,444 ………… Monthly Mortgage Payment
$282 ………… Property Tax at 1.04%
………… Mello Roos & Special Taxes
$81 ………… Homeowners Insurance at 0.3%
$327 ………… Private Mortgage Insurance
………… Homeowners Association Fees
============================================
$2,133 ………. Monthly Cash Outlays
($219) ………. Tax Savings
($477) ………. Equity Hidden in Payment
$14 ………….. Lost Income to Down Payment
$101 ………….. Maintenance and Replacement Reserves
============================================
$1,553 ………. Monthly Cost of Ownership
Cash Acquisition Demands
——————————————————————————
$4,750 ………… Furnishing and Move In at 1% + $1,500
$4,750 ………… Closing Costs at 1% + $1,500
$3,136 ………… Interest Points
$11,375 ………… Down Payment
============================================
$24,011 ………. Total Cash Costs
$23,800 ………. Emergency Cash Reserves
============================================
$47,811 ………. Total Savings Needed
——————————————————————————————————————————————-
This property is available for sale via the MLS.
Please contact Shevy Akason, #01836707
949.769.1599……
sales@ochousingnews.com…..
We're sorry, but it seems that we're having some problems loading MLS # H12091560 from our database. Please check back soon.
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$364,900 827 CYPRESS Ave |
0.35 miles 3 bd / 1.75 ba 1,369 Sq. Ft. |
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$375,000 521 East RUSSELL Ave |
0.62 miles 3 bd / 1.5 ba 1,257 Sq. Ft. |
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$330,000 815 South VAN NESS Ave |
0.69 miles 3 bd / 2 ba 1,273 Sq. Ft. |
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$307,000 521 East WILSHIRE Ave |
0.75 miles 4 bd / 1.5 ba 1,292 Sq. Ft. |
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$378,500 742 North GRAND Ave |
0.95 miles 3 bd / 2.75 ba 1,436 Sq. Ft. |
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$449,000 1027 West WALNUT St |
0.99 miles 4 bd / 2 ba 1,749 Sq. Ft. |
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$339,000 1601 OAK St |
1.06 miles 4 bd / 2 ba 1,410 Sq. Ft. |
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$349,000 1330 South FLOWER St |
1.15 miles 4 bd / 2 ba 1,543 Sq. Ft. |
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$2,650,000 1522 North FLOWER St |
1.42 miles 5 bd / 2 ba 1,381 Sq. Ft. |
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$339,900 2040 KILSON Dr |
1.44 miles 3 bd / 2 ba 1,512 Sq. Ft. |
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Perhaps residential may be recovering (or perhaps not), but commercial is getting worse.
Trepp Reports Another All-Time High for CMBS Delinquency Rates
The delinquency rate for commercial real estate loans reached another all-time high in July, according to a report from Trepp.
Spiking up another 18 basis points, the CMBS delinquency rate stood at 10.36 percent, up from 10.16 percent in June and 10.04 percent in May. Last year at this time, the rate was 9.88 percent.
July’s increase is the fifth monthly rise and means the delinquency level is up 97 basis points since February.
The analytics company said the continued increase is due to a wave of five-year loans that could not refinance. Since most of the 2007 loans matured in the first half of 2012, Trepp predicts the rate should plateau in coming months, despite the jump in the delinquency rate in July.
In response to Trepp’s findings, David Tobin, principal at Mission Capital Advisors, said the delinquency rate remains elevated because of the market pressures all vintages of originations are experiencing.
“These include persistently high unemployment, which directly affects office and industrial demand and secular changes in how retail real estate interacts with consumers – or doesn’t as the case may be,” said
Among the five categories of properties, the retail loan segment was the only one which saw an increase.
The retail delinquency rate dropped 14 basis points to 8.03 percent.
The multifamily delinquency rate fared the worst and was up 52 basis points to 15.69 percent. The hotel delinquency rate followed behind at 13.06 percent while the industrial delinquency rate climbed to 11.72 percent. The office delinquency rate increased to 10.69 percent.