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San Diego Still Has Housing Woes And Upside-Down Homeowners

Evening Edition

Above: Dr. Michael Lea, Director, The Corky McMillin Center for Real Estate, SDSU School of Business Administration Matt Battiata, Broker and CEO, The Battiata Real Estate Group, author of "Upside Down Nation: The Handbook for Upside Down Homeowners"

Aired 6/11/12 on KPBS Midday Edition.

GUESTS

Dr. Michael Lea, Director, The Corky McMillin Center for Real Estate, SDSU School of Business Administration

Matt Battiata, Broker and CEO, The Battiata Real Estate Group, author of "Upside Down Nation: The Handbook for Upside Down Homeowners"

(In the interest of full disclosure, Matt Battiata is an underwriter of KPBS.)

Transcript

Home development
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Above: Home development

The San Diego housing market is better than it was two years ago, but is not making significant progress, said Michael Lea, the director of The Corky McMillin Center for Real Estate at the San Diego State University School of Business Administration.

"We're bouncing along the bottom," he said.

He said estimates are that 30 to 40 percent of homeowners are still underwater, meaning their mortgages cost more than their houses are worth.

Matt Battiata, CEO of The Battiata Real Estate Group and author of "Upside Down Nation: The Handbook for Upside Down Homeowners," said underwater homeowners can try for a loan modification, short sale, staying in their home or "throw their keys on the counter and walk away."

Walking away is the worst option because of the negative impact that has on credit, he said.

Battiata said he's seeing many people doing short sales and then buying again.

Lea said attempts to modify loans "have had far smaller effects than we thought." But, he said, banks are more willing to negotiate.

Comments

Avatar for user 'StopStrategicDefaults'

StopStrategicDefaults | June 11, 2012 at 1:11 p.m. ― 2 years, 1 month ago

Our society is in denial about the terrible impact of "intentional" mortgage walk aways (via foreclosures and short sales) on the housing crisis and how it has ruined the lives of many homeowners who do indeed incur a financial difficulty and have to sell their homes. California's anti-deficiency laws, which were originally put in place to protect those in real hardship, are being milked by unethical and irresponsible people. Ultimately, it is the consumers who are paying the price. The system is completely unfair and disgusting. Lawmakers need to wake up and fix it for everyone's sake. For more please visit www.stopstrategicdefaults.org.

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Avatar for user 'beachbud'

beachbud | June 11, 2012 at 1:58 p.m. ― 2 years, 1 month ago

Does anyone know if the qualifying dates for HAMP and HARP will ever change to later than Jan/May 2009? Its a major obstacle for refi's and loan modifications to those of us that need rate adjustments!

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Avatar for user 'StopStrategicDefaults'

StopStrategicDefaults | June 11, 2012 at 2:18 p.m. ― 2 years, 1 month ago

Hi beachbud,

I think the White House is working on it. Visit http://www.whitehouse.gov/why-refi?utm_source=email163&utm_medium=graphic&utm_campaign=whyrefi and leave your comments.

Regards,

SSD

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Avatar for user 'jenjen'

jenjen | June 11, 2012 at 4:12 p.m. ― 2 years, 1 month ago

"The Market" better than it was 2 years ago? I wasn't underwater two years ago but this year I am. Where are these homes that have recovered in value? They aren't where I live.

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