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Data Quick Information Systems estimate there are 700,000 to 750,000 outstanding loans in San Diego County. (excluding duplexes,triplexes and apartments). As of the end of the full 1st quarter of information statistics, 10% of these loans were from the sub-prime market and nearly 13% of these loans were past due by at least 60 days.
How did this Happen?
Many of the sub prime loans were sold to borrowers when home prices were escalating. These creative loans required little or no documentation of the borrows ability to re-pay these loans. Some of these loan types are now categorized as predatory-like in nature as the loan brokers fixated on making the sale with little regard to the borrowers. The borrowers believed there was no downside and that prices would continue to move-up.
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In an article in the Union Tribune, San Diego's primary newspaper, a Grand Jury report released last week became allied to the Mayor's approach to selling city owned property. The Mayor favors allowing real estate brokers to sell city land instead of liquidating the properties at auction. The grand Jury report touted this approach as one way to assist in the revamping of the city's troubled Real Estate Assets Department.
The city owns 3400 properties covering 1200 acres. It also rents 680 properties and many of those leases have expired. The Mayor will ask the city council to approve selling 19 properties valued at over 40 million.
A member of the council lauded the Mayors entrepreneurial spirit but also cautioned that this practice should not be done for the simple purpose of balancing the city's budget. Historically the city has used auctions to liquidate properties but the Mayor believes that there would be increased exposure to Buyers and possibly increased value in the competitive market. The Mayor called the real estate brokerage participation in selling city properties innovative".
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