An Irvine based Fannie Mae REO associate was indicted on federal bribery charges late last month. Armando Granillo, 44, used to work out of the government mortgage giant’s office in Irvine, California as an REO specialist. Apparently Mr. Granillo also specialized in offering brokers listings access to Fannie Mae’s extensive portfolio of foreclosed homes for a 20% kickback off sales commissions.

Granillo approached a broker in Tucson Arizona with such an offer – unfortunately for him the Tucson realtor reported Granillo to the authorities. An elaborate sting operation was set up where Granillo flew down to Phoenix to meet the broker and receive an $11,200 payment. The entire transaction was caught on tape and Granillo was promptly arrested by federal authorities.

Audio obtained by authorities from the sting operation Granillo states that kickbacks are “a part of the business.” Granillo is currently out on bail. He faces 20 years in prison if found guilty on 3 charges of wire fraud.

As a REO specialist for Fannie Mae, Granillo’s job was to review and approve (or deny) listing offers from real estate brokers who wanted a piece of the Fannie Mae foreclosure action. Instead of doing his job, Granillo used his position of power to solicit bribes from these brokers.

The big question that needs to be asked here is if this is an isolated case, or if it points to something rotten at the core of Fannie Mae. It’s no secret that the keys to the 24 Billion of foreclosed properties owned by Freddie Mac and Fannie Mae are in the hands of mid-level office workers like Granillo. How many of them are expected to remain totally honest gatekeepers of billions of dollars of assets and not give in to temptation?

Alex Aguilar

is the owner of Team Aguilar real estate in San Diego and your source for everything related to the San Diego Real Estate market. Please subscribe to his updates on Facebook.

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The world of celebrities and real estate frequently intersect – stars buying million dollar homes and stars losing million dollar homes have been tabloid fodder for decades. For a change of pace let’s look at real estate agents who are celebrities in their own right, not REALTORS® to the stars (plenty of them around) but agents working in the field who are (or were) famous for one thing or the other. Keep in mind we use “celebrity” in the loosest sense of the word.

1. ‘Old Man’ off Pawn Stars

Star of Pawn Stars, the hit History reality TV show, Richard Harrison (better known as ‘Old Man’) had a long and storied career before finding success in the cutthroat world of Las Vegas pawn-brokers. Before reality TV stardom and the bright lights of Las Vegas, ‘Old Man’ Harrison spent 21 years in the US Navy. He and his family were based in San Diego for most of those 21 years, where Harrison’s wife JoAnne obtained her REALTORS license and opened a San Diego real estate office in 1973. After he left the navy in the late 70′s Harrison helped run his wife’s San Diego real estate business for a number of years, until 18 percent interest rates in 1981 almost drove them to bankruptcy. The couple was forced to close up their San Diego real estate office and make the move to Las Vegas with less than $5000 to their name. Soon after the move ‘Old Man’ Harrison opened his first store, a tiny 300 square-foot Gold & Silver Coin Shop and the rest, as they say, is history.

2. Sharona off The Knack’s hit, My Sharona

Sharona Alperin met The Knack’s lead singer Doug Fieger when she was 17 and a four year relationship ensued. His time with her inspired Fieger to write the band’s one and only hit, ‘My Sharona.’ Today, Alperin is a REALTOR for Sotheby’s International Realty, selling high-end real estate in West LA. Even though Alperin has been a successful real estate agent for more than 20 years she does not back away from her place in rock history, as anyone visiting her homepage will see.

3. Gay Swedish porn star turned real estate superstar, Fredrik Eklund

Fredrik Eklund left his native Sweden in 2001 and arrived in California where he starred in six gay pornographic films for the next two years. Eklund then made the move to New York where in a short amount of time he went from having zero clients and no real estate experience to becoming the managing director of Core Group Marketing, a boutique real estate firm where he handled a $58 million portfolio in 2010. Eklund is currently the managing director of Douglas Elliman Real Estate in Manhattan with “more than 1.5 billion dollars in residential sales over the last 11 years” according to his online profile.

Son of a prominent public figure (noted Swedish economist Klas Eklund), Mr. Eklund’s colorful past has made him something of a minor celebrity in his native Sweden. Now, with his Bravo real-estate themed reality show entering its second season, Eklund is well on his way to becoming a minor-celebrity here in America.

Celebrity REALTORS

Alex Aguilar

is the owner of Team Aguilar real estate in San Diego and your source for everything related to the San Diego Real Estate market. Please subscribe to his updates on Facebook.

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The latest report from real estate tracker DataQuick paints a sunny picture for San Diego Real Estate in 2013. January’s figures show mortgage default rates in San Diego County at their lowest levels since mid-2005, and foreclosures at a six year low.

Impact of the Homeowner Bill of Rights
A big reason for these declines is the of the Homeowner Bill of Rights, a comprehensive update to California’s mortgage regulations championed by Attorney General Kamala Harris and signed into law by Governor Jerry Brown. The bill includes provisions to stop dual tracking (a controversial procedure where banks went ahead with foreclosure against struggling homeowners in the middle of a short sale or loan modification procedure), stop robo-signing foreclosure documents and to streamlining loan modification applications to make it easier for borrowers.

Despite strenuous objections from industry groups like the California Mortgage Association, California Bankers Association and California Mortgage Bankers Association, the Homeowner Bill of Rights became law on January 1st and had an immediate effect on lowering foreclosures and mortgage defaults, although the jury is still out on long-term ramifications.

Short Sales Popular as Ever
Short sales, where the lender approves the sale of a property for lower-than-market-price and forgives the remainder of the debt, made up 25.9% of all homes sold in Southern California. San Diego short sales remain as popular as ever, as it gives borrowers the opportunity the chance to get back into solvency with minimum impact to their credit ratings, and lenders the chance of avoiding a messy, lengthy and expensive foreclosure.

A large part of the rise in popularity of short sales in recent months is due to the $25 billion joint state-federal settlement reached with the nation’s largest mortgage companies in February 2012. The settlement is meant to help homeowners struggling in the aftermath of the housing-collapse, and the majority of that help is coming in the form of short sales. Now is as good a time as any to get approved for a short sale, seeing as the nation’s largest mortgage servicers are obliged to help.

Tight Inventory, Seller’s Market
San Diego real estate’s lack of inventory has led to a steady increase in prices towards the end of December. The lack of inventory and rising prices have created the perfect conditions for a seller’s market in January, and many homeowners decided to sell their properties to take advantage of this sudden-price hike.

This increase in sales is reflected in January’s figures, which show a six year high in the number of homes sold for that month. Experts are already questioning whether this sudden price hike is sustainable, and if it could encourage short-term property speculators.

Cash is King!
34.9 percent of all homes sold in January were paid for in cash. Buyers are paying with cash in record numbers in San Diego and other real estate markets in Southern California. Jumbo loans, i.e. mortgages above $417,000, accounted for 21.6 percent of January’s home lending, adjustable-rate mortgages (ARMs) made up 5.8 percent while government-insured FHA loans, popular with first-time buyers, accounted for 23.5 percent of home financing options for the month of January.

Think market conditions are ripe for investing? Check out our San Diego real estate listings and contact Carlos or Alex today.

Alex Aguilar

is the owner of Team Aguilar real estate in San Diego and your source for everything related to the San Diego Real Estate market. Please subscribe to his updates on Facebook.

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For many homeowners struggling with underwater mortgages in the aftermath of the housing crash, a short sale is often the best possible solution to their problems.

To put it simply, a short sale is where the homeowner sells his or her property for less than what is owed on it. All the lenders have to be on board and agree with the short sale  before it can be completed. The proceeds of a short sale go directly to the lenders, minus closing-fees and other minor transactions costs. Once the short sale is complete, the borrower is free from any obligations on the property; any outstanding debt (the difference in what was owed on the property and what was realized from the short sale) is forgiven by the lenders.

Short sales are advantageous to both homeowners and banks. Homeowners unable (or unwilling) to make monthly mortgage payments on homes with negative equity can take advantage of a short sale to walk away from their obligations debt free and sometimes have a relatively minor hit on their credit ratings. For a more detailed look into why short sales are preferable to all parties involved, please see my earlier blog on the subject.

One thing every homeowner thinking about doing a short sale must be aware of is the tax consequences. Short sales can affect your taxes in negative or positive ways, depending on your financial situation.

Short sales involve the forgiveness of debt by the lender. Any forgiveness of debt is, as far as the IRS is concerned, considered taxable income.

Here’s a basic example:

Current market value of home is $250,000. The homeowner took out a home equity loan on the house in the height of the housing bubble (when the value was considerably higher) and currently owes the bank $300,000. The bank agrees to a short sale and purchases the house for its current market value of $250,000, writing off the outstanding $50,000 as forgiven debt. The State of California views this forgiven $50,000 as gross taxable income.

$250,000 current house value.

$300,000 loan amount based on previous value when the house was worth considerably more.

$50,000 = Amount forgiven by the bank in a short sale. Remember, THE BANK’S LOSS IS YOUR GAIN, and that is why the IRS views this as taxable income.

Fortunately the State of California has passed the Conformity Act of 2010, a law that offers struggling homeowners from being taxed on the forgiven debt from a short sale. The Conformity Act of 2010 essentially a copy of the federal Mortgage Forgiveness Debt Relief Act, a law that exempts taxpayers from having to report forgiven debt from short sales of their primary residence between 2007 and 2013 as gross income on their tax forms.

In many states, including non-recourse states such as California, second mortgages such as a home-equity-lines-of-credit, popularly known as HELOC, are not covered by the state or federal tax exemption laws. To put it simply, the first loan you took out to purchase your house is covered by the Mortgage Forgiveness Debt Relief Act and the Conformity Act, the second or third home equity loans you took out to buy that speedboat or sports car is not. There have been cases where banks have sued borrowers to recoup HELOC money.

The Federal debt relief Act limits the exempt forgiven debt to $2,000,000 for married people, single people, heads of households, and widows or widowers. Married people filing separately have limits of $1,000,000. California’s Conformity Act covers up to $800,000 (or $400,000 if married filing separately) of mortgage debt forgiven between Jan. 1, 2007 and Dec. 31, 2013, through foreclosure, short sale or some other loan modification. Once, again these only apply to debt used to buy, build or renovate a principal residence – home equity loans taken to purchase speedboats and luxury vacations are not covered.

Keep in mind that these laws are not blanket exemptions, and apply only to homeowners unable to maintain regular monthly payments due to financial hardship or decline in home prices. Also remember that these exemptions are limited to debt forgiven on the taxpayer’s primary residence. Vacation homes and investment properties may not be covered by these specific laws, although there do exist ways to minimize the tax burden from the sales of these as well. Always check with a qualified tax accountant or attorney to find out how and if these laws apply to your own situation.

As part of the fiscal cliff compromise on January of this year, the Mortgage Forgiveness Debt Relief Act has been extended another year till the end of 2013. A California Senate Bill to extend the Conformity Act for the remainder of 2013 has been filed on January 3 and is currently pending review by the State Senate Governance and Finance Committee. (See here for latest updates on the bill.)

For more information on the federal Mortgage Forgiveness Debt Relief Act and Debt Cancellation law please visit: http://www.irs.gov/Individuals/The-Mortgage-Forgiveness-Debt-Relief-Act-and-Debt-Cancellation-

For additional background information on California’s Conformity Act of 2010, please visit: https://www.ftb.ca.gov/aboutFTB/newsroom/Mortgage_Debt_Relief_Law.shtml

If you’re thinking of doing a short sale on your property, please contact either Carlos or Alex at Team Aguilar – your San Diego short sale specialists.

Alex Aguilar

is the owner of Team Aguilar real estate in San Diego and your source for everything related to the San Diego Real Estate market. Please subscribe to his updates on Facebook.

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The latest PHSI figures from the National Association of Realtors have shown a marked decline in new contract signings for December, 2012. The PHSI, or Pending Home Sales Index, is the NAR’s leading indicator of the future condition of the real estate market; it looks at all home sales contracts that have been signed but not closed. (Contracts typically take four to six weeks to close.) Overall PHSI trends are still positive with each month showing higher figures compared to a year ago for 20 consecutive months, but December, 2012 showed a 4.4% drop-off in signed contracts from the previous month (although still up 6.9% compared to December, 2011).

A Loss of Momentum

A downturn of 4.4% indicates “a loss of momentum in the signing of contracts to buy a home,” according to NAR chief economist Lawrence Yun. In spite of the overall positive market trends, Yun adds, December’s slow-down cannot be dismissed as a one-time statistical fluke, and has to be considered a “measurable decline.”

This sudden downturn is not due to a lack of buyers, however, but rather to a lack of inventory in certain key markets. Demand is high and buyer interest remains strong in the fourth quarter of 2012 and is set to continue in 2013. The latest Buyer and Seller Traffic Index from Realtors.org paints clear a picture of a seller’s market; buyer traffic outstripped seller traffic 56 – 38.

Decline in Inventory

The decrease in contract signings is not uniform across the country – three of the four major real estate markets have seen an increase in pending contracts from a year ago. December’s 4.4% decline is actually driven by one key region – the West, which comprises of real estate markets in Arizona, Nevada, California and Washington State. These regions, according to Yun, are suffering from an acute shortage of inventory. The double-digit growth in prices in the West compared to other regional markets reinforces the idea that it is a supply-constraint rather than a lack of demand that is the reason behind December’s slowdown.

Strong Demand + Low Inventory = Rise in Prices

Supplies of homes in the sub $100,000 range are especially low in the West. First time buyers are stuck with few options as demand for starter homes continues to grow, driving up prices. There is more movement at the higher end of the market, although the tight inventory means it is still very much a seller’s market.

This lack of inventory can also be seen in the local San Diego real estate market. The Californian real estate market rebounded earlier than other regions in 2012, seeing increased sales in the fourth quarter and a lower supply of available homes in December and beyond. Everyone who kept expecting a glut of bank owned property to flood the market with new inventory in 2013 are going to be disappointed; the banks report that they don’t have much inventory in the pipeline for California.

Although builders in Western markets are ramping-up housing-starts in 2013, they are doing so from a considerable deficit (due to severely diminished new-home construction in the wake of the 2006-2009 Depression). Even at the increased pace of construction, housing-starts are nowhere near enough to meet demand in California and other markets in the new year.

What to Expect in 2013?

Even with the ongoing inventory problems in certain regional markets, things are looking up in the real estate sector in 2013. Favorable affordability conditions in most regions combined with cheaper borrowing costs and more job gains will likely drive real-estate growth in the new year. Previously owned homes account for over 90 percent of the housing market, and NAR head economist Lawrence Yun expects the sale of these homes to go up 9 percent in 2013.

Home buyers who qualify for financing can take advantage of extremely competitive rates right now. Stats from Freddie Mac show that the average interest rate on a 30-year, fixed-rate mortgage in the last week of January 2013 was 3.42 percent; one of the lowest in the last 40 years.

While inventory may be tight, there are still plenty of active listings at TeamAguilar.com. Looking to buy or sell? Think now is a good time to invest? Contact Carlos or Alex today.

Alex Aguilar

is the owner of Team Aguilar real estate in San Diego and your source for everything related to the San Diego Real Estate market. Please subscribe to his updates on Facebook.

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Here’s something for us regular people to drool over: New England Patriots quarterback Tom Brady’s luxury mansion in the LA’s ritzy Brentwood district.

Built on land bought by the three-time Super Bowl winner and his supermodel wife, Gisele Bündchen, the finished mansion consists of eight bedrooms, a six-car garage, an elevator, child’s nursery, a lagoon-shaped swimming pool, wine cellar, spa, training room and (wait for it) a butler’s room. The 22,000 square foot property consists of two separate wings, connected together with an indoor bridge. The most talked about aspect of the mansion is the moat that surrounds parts of the main building – presumably to grant the young couple some privacy in their palatial estate.

While the land was acquired for $11 million in 2008, the finished mansion cost some $20 million to complete. Now would be a good time to remind our readers that that Tom Brady and Brazilian born Gisele Bündchen have a combined net worth of nearly $90 million.

In addition to being world famous super-model Gisele is also an eco-activist and goodwill ambassador for the United Nations Environment Program (UNEP), and has come under considerable criticism from environmentalists for building such a huge home for such a small family.

To counter such criticisms Gisele had a number of environmentally friendly technologies incorporated into the property including solar panels, energy-saving lighting systems, rainwater harvesting systems, waste reduction and recycling programs, energy-efficient appliances and sustainable building materials – although the most effective environmentally friendly gesture would be for the young couple and their infant son to not live in a 22,000 square foot luxury estate with a moat.

Let’s hope Tom has better luck holding on to his luxury home than many of his predecessors.

Want to see what a cool $20 million will get you closer to San Diego? Check out Team Aguilar’s luxury homes priced over $10,000,000 section.

Alex Aguilar

is the owner of Team Aguilar real estate in San Diego and your source for everything related to the San Diego Real Estate market. Please subscribe to his updates on Facebook.

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Now that enough time has elapsed since the 2012 Presidential Elections, let’s take a look at what Mitt Romney has been up to since his defeat. While his running mate Paul Ryan featured prominently during the ongoing fiscal-cliff negotiations, Mitt Romney has kept a low profile after his concession speech at the Boston Convention Center in the early hours of November 7, 2012.

There were reports of Romney leaving the convention center immediately after his concession speech in a single vehicle driven by his oldest son, Tagg – a far cry from the 15 car Secret-Service escorted motorcade he arrived in.

After a grueling 18 month election campaign that saw Mitt Romney travel all over the country in search of votes, he quietly stepped out of the spotlight once it became clear his life-long ambitions of becoming president were well and truly dead.

So where did Mitt Romney end up after all the glitz and glamor of a billion dollar presidential campaign? Not Michigan, where he grew up. Not Massachusetts, where he spent most of his adult life, ruled as governor and maintains his official residence. And not New Hampshire, where Mitt and his wife own an 11 acre, $10 million lake-front property. In the end Romney decided to spend his post-campaign life in California – namely at his beachfront mansion in La Jolla, San Diego. Regular readers will know that I’ve blogged about Romney’s La Jolla beachfront property before, and discussed his attempts to lower its property taxes as well as his difficulty in getting permits to renovate it.

Romney and members of his extended family have been spotted all over the upscale San Diego neighborhood of La Jolla. To date, Romney has been photographed shopping at the La Jolla Costco; blurry cell phone photos have emerged of Romney and his wife Anne at a Saturday night showing of the latest Twilight (yes, Twilight!) film at a Del Mar cinema; and an aspiring Redditor snapped a photo of a tired looking Romney pumping gas at a La Jolla San Diego station.

Other random places where post-election Mitt Romney has popped up: ring-side at the Manny Pacquiao vs. Juan Marquez fight in Las Vegas; The Happiest Place on Earth (which, unsurprisingly, is in California); eating pizza in Salt Lake City; and buying Cheerios at a CVS.

By all accounts Romney has been cheerful and gracious when out and about in publix, even agreeing to pose for photographs public on occasion.

Although no one should begrudge Mitt Romney enjoying some time away from the limelight in a beautiful La Jolla neighborhood with incredible views of the sea – it is a little ironic considering what Mitt Romney had to say about California during the campaign. In September, 2012, on a fundraiser stop in San Diego, Romney commented that he did not agree with the path California has taken, and did not want to see the rest of the US resemble the Golden State. The entire quote and the context in which it was said can be found here.

None the less, San Diegans should be flattered that Mitt Romney chose our city and our State out of all his other houses in all the other States. Presidential Candidate Romney may not want the rest of the country to turn into California, but private citizen Romney certainly wasted no time in picking San Diego, California as his #1 choice for place to live!

Want to be Mitt’s new neighbor? Check out Team Aguilar’s La Jolla section!

Alex Aguilar

is the owner of Team Aguilar real estate in San Diego and your source for everything related to the San Diego Real Estate market. Please subscribe to his updates on Facebook.

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It is with a heavy heart we say goodbye to Carole Yoder, a member of the Team Aguilar family. Carole Yoder was a great agent with over 40 years experience in the real estate industry. Although Carole retired last year, everyone at Team Aguilar can still recall the enthusiasm and positive energy she brought to the office.

In a business where you constantly come across people with big personalities and strong egos, working with Carole was a breath of fresh air. She was always in a good mood and eager to work with her clients to give them the best service possible. Carole always had a smile on her face, even when going through some tough personal times.

Carole Ann (Poe) Yoder-Lahtinen passed peacefully on January 5, 2013 in San Diego. All our agents and office-staff who have worked with Carole over the years will miss her very much and remember her fondly.

Carole Ann Yoder-Lahtinen obituary.

Alex Aguilar

is the owner of Team Aguilar real estate in San Diego and your source for everything related to the San Diego Real Estate market. Please subscribe to his updates on Facebook.

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Happy Holidays to all our readers from the entire family at Team Aguilar Real Estate. We hope you’re enjoying this holiday season with your loved ones, and we look forward to a happy, healthy and successful 2013.

We’re planning big things for TeamAguilar.com in 2013 - we hope you’ll join us in the new year to see our plans become reality!

All the best to you and your family,

Carlos & Alex Aguilar
www.TeamAguilar.com

Alex Aguilar

is the owner of Team Aguilar real estate in San Diego and your source for everything related to the San Diego Real Estate market. Please subscribe to his updates on Facebook.

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It’s no secret that the key to getting a good mortgage is to have good credit. Home buyers with a good credit rating will get the best mortgage offers – it’s as simple as that. Maintaining a strong credit history should be the number one priority of anyone looking to climb the property ladder.

Anyone with a history of bad credit who has tried to take on a new mortgage will know what an uphill struggle it can be. Some lenders will want to renegotiate for higher interest rates as they perceive buyers with poor credit scores a lending risk; others will flat out reject mortgage applications from buyers with low credit scores. This makes it difficult for anyone who has had money trouble in the past to become a homeowner. Recent immigrants, young adults and first time home-buyers are groups that have trouble getting mortgages due to a lack of credit history.

Although there is no quick way to change one’s credit rating overnight; there are a few basic things a prudent individual can do to improve their credit score. First and foremost, it is important to make periodic checks on credit reports. Credit reports are not infallible; mistakes do happen. Seeing one’s credit reports in advance gives the aspiring homeowner the opportunity to catch and correct any errors before anyone else sees them. It also gives the individual the chance to see if there are any missed payments he or she may have forgotten about. Needless to say, paying off any outstanding debts will go a long way in improving credit scores.

All consumers have the right to check their credit scores. It is a myth that checking one’s own credit history negatively impacts their score: it doesn’t. An individual can check his or her own credit history as many times as they want with no negative consequences to their score. There is an impact, however, when outside entities such as mortgage companies or car dealers look up an individual’s credit history.

Common errors in credit reports include things like debt that is not actually owed; these can be rectified by sending a dispute letter to the credit bureaus. In addition to fixing mistakes on a credit report, the only other way to maintain a good credit rating is to keep a regular schedule of on-time debt payments, avoid defaulting on loans and keep a balance of less than 50% on all credit cards.

Keeping a healthy credit history is the only way of obtaining a mortgage with favorable terms and conditions. Home-buyers armed with good credit scores will be the first to get mortgages in San Diego with low interest rates and comparatively better loan terms.

Do you qualify? Check the possible mortgage rates for the San Diego home of your dreams with our handy Team Aguilar mortgage calculator.

Alex Aguilar

is the owner of Team Aguilar real estate in San Diego and your source for everything related to the San Diego Real Estate market. Please subscribe to his updates on Facebook.

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