San Diego Real Estate Market Recovery

MSN Forbes.com reports that Moody's Economy.com has forecast San Diego as nationally the number four ranked metro market with prospects for a near-term real-estate recovery. According to the report, the San Diego market is expected to turn-around in second-quarter 2008. In contrast, third-ranked Las Vegas is not expected to bottom until second-quarter 2009 and second-ranked Phoenix's rebound is likely to occur in the fourth-quarter 2008. San Diego real estate is predicted to appreciate 5.3% during the first year of recovery.

Real estate loan fraud

The weakened residential real estate market has created a favorable environment for scammers and real estate loan fraud. Taking advantage of the desperation of some home sellers, "buyers," sometimes even represented by real estate licensees, offer to overprice the sale price of a home. With a co-operative mortgage agent and appraiser, 100% (or more) financing is arranged for the bloated sale price. The owner is happy because he is able to sell his home. The "buyer" and his accomplices walk off with tens and even hundreds of thousands of "easy money" and let the bank take the hit when the mortgage isn't paid. Another variant is for the "buyer" to convince the home seller to carry back a second or third trust deed (i.e., mortgage) with no cash out from the buyer. Sellers take heed: co-operating with loan fraud involving a federally chartered bank carries a potential ten-year prison sentence and the FBI is quite serious in pursuing these cases.