{"id":4307,"date":"2008-09-09T09:58:40","date_gmt":"2008-09-09T16:58:40","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=4307"},"modified":"2008-09-09T09:58:40","modified_gmt":"2008-09-09T16:58:40","slug":"san-diego-city-attorney-aguirres-sanctuary-best-left-for-fairy-tales","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4307\/san-diego-city-attorney-aguirres-sanctuary-best-left-for-fairy-tales\/","title":{"rendered":"San Diego City Attorney Aguirre’s “Sanctuary” Best Left For Fairy Tales"},"content":{"rendered":"

San Diego City Attorney Michael Aguirre attempts to halt the flow of new loans<\/a>, into San Diego , by calling a “do over”:<\/p>\n

San Diego\u2019s city attorney said on Wednesday he filed a lawsuit against Bank of America<\/strong> and its Countrywide unit to prevent the mortgage lenders from foreclosing on homes in the city, which he aims to make a \u201cforeclosure sanctuary.\u201d<\/em><\/p>\n

City Attorney Michael Aguirre plans to file similar lawsuits against Washington Mutual<\/strong>, Wells Fargo<\/strong> and Wachovia <\/strong> in an effort to make the lenders negotiate with mortgage borrowers facing foreclosure. <\/em><\/p>\n

\u201cWe would like to see San Diego become a foreclosure sanctuary,\u201d Mr. Aguirre said.<\/em><\/p><\/blockquote>\n

Oh brother.\u00a0 This is so stupid I don’t even know where to begin.\u00a0 Foreclosure is an important part of a loan contract.\u00a0 If a government interferes with the execution of that contract, then a precedent of interference will be set.\u00a0 Two things can happen:<\/p>\n

1- Lenders will need to assess the cost of the “foreclosure sanctuary” and build it into the cost of the newly originated loans.\u00a0 Buyers will reject the new loans, priced far above loans made in Del Mar, and the City of San Diego housing prices will plummet even farther.<\/p>\n

2- Lenders will, most likely, just ignore San Diego.\u00a0 We saw it happen in Cleveland, about ten years ago.<\/p>\n

I knew a shylock<\/a>, back in Philly.\u00a0 He worked the union halls.\u00a0 He’d loan a guy a few hundred bucks, until payday, and make 30%\u00a0 vig<\/a> for the effort.\u00a0 His default rate, for first -time borrowers, was extraordinarily high.\u00a0 I asked him about his collection policy, visions of The Sopranos in my head. The “shy” didn’t like to get his hands dirty.<\/p>\n

If a borrower defaulted, the shylock refused to lend money in that particular union hall.\u00a0 He let his steady customers\u00a0 enforce his collection policy.\u00a0\u00a0\u00a0 If a bright borrower decided to alert the authorities, the shylock simply denied any lending activity, and took the loss.\u00a0 Of course, he never lent in that union hall again.<\/p>\n

Mr. Aguirre’s political stunt could lead to that “mob mentality” should lenders halt all activity in the City of San Diego.\u00a0 Sellers, frustrated with the Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

San Diego City Attorney Michael Aguirre attempts to halt the flow of new loans, into San Diego , by calling a “do over”: San Diego\u2019s city attorney said on Wednesday he filed a lawsuit against Bank of America and its Countrywide unit to prevent the mortgage lenders from foreclosing on homes in the city, which […]<\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-4307","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-real-estate","8":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":4418,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4418\/fannie-and-freddie-fall-to-foreclosure-but-still-lenders-lend\/","url_meta":{"origin":4307,"position":0},"title":"Fannie and Freddie fall to foreclosure, but, still, lenders lend","author":"Greg Swann","date":"September 14, 2008","format":false,"excerpt":"This is my column for this week from the Arizona Republic (permanent link). \u00a0Fannie and Freddie fall to foreclosure, but, still, lenders lend I write this column at the beginning of the week, and it appears at the end of the week. My topics are usually timeless, but, if I\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":6980,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/6980\/bankrupt-ideas-for-changing-bankruptcy\/","url_meta":{"origin":4307,"position":1},"title":"Bankrupt Ideas for Changing Bankruptcy","author":"Sean Purcell","date":"February 20, 2009","format":false,"excerpt":"Two excerpts from a local article:\u00a0 Bankruptcy reform could help hard-up homeowners Overwhelmed by debt from credit cards, a $536-a-month truck payment, $8000 in overdue property taxes and two mortgages, the single homeowner is hoping (San Diego bankruptcy attorney) Colwell can remove the $84,000 second loan on his home, which\u2026","rel":"","context":"In "Big Mother"","block_context":{"text":"Big Mother","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/big-mother\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2723,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2723\/a-deficiency-judgement-in-arizona-not-likely\/","url_meta":{"origin":4307,"position":2},"title":"A Deficiency Judgement? In Arizona? Not Likely.","author":"Allen Butler","date":"March 8, 2008","format":false,"excerpt":"Hello again! Have\u00a0clients asking\u00a0you about short sales? I know I certainly do! In fact, it's become a big part of my business. In fact, I am conducting short sale negotiations for 3 different REALTORS, as well as 5 different clients. Unfortunately, a lot of questions have arisen lately about Arizona's\u2026","rel":"","context":"In "Ask the Broker"","block_context":{"text":"Ask the Broker","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/ask-the-broker\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":10783,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/10783\/principal-reduction-or-interest-rate-decrease\/","url_meta":{"origin":4307,"position":3},"title":"Principal Reduction Or Interest Rate Decrease?","author":"Jeff Brown","date":"January 9, 2010","format":false,"excerpt":"My stompin' ground is San Diego. When the bubble burst here, the median price for a single family residence was within shoutin' distance of $600,000. To give you some perspective on that number, my first ever listing was a 4 bedroom home in a blue collar area in October of\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":10221,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/10221\/fannierents-taxpayers-are-now-going-to-own-all-these-houses-fannie-mae-should-have-unloaded-its-going-to-cost-a-fortune\/","url_meta":{"origin":4307,"position":4},"title":"FannieRents: “Taxpayers are now going to own all these houses Fannie Mae should have unloaded. It’s going to cost a fortune.”","author":"Greg Swann","date":"November 5, 2009","format":false,"excerpt":"Yahoo News:Can't pay the mortgage? You still might be able to stay in your home. Government-controlled mortgage company Fannie Mae is going to give borrowers on the verge of foreclosure the option of renting their homes for a year. 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