Downtown San Diego Condos: Cash for Clunkers or Condos?

What's the difference between "Cash for Clunkers" and what we have experienced in the real estate market "Cash for Condos" or homes? Here is a really interesting article by Dave Ramsey of "Money Makeover" fame. He has a really interesting take on who benefited from this Cash For Clunkers program. Click here for Dave Ramsey's article

I think Dave is correct in his assessment. Some of these new car buyerscould definitely afford them, but there is a group of people who were enticed thinking they were getting "something for nothing". Little did they realize they were receiving a car payment along with a tax liability for the $3500-$4500 received.

This is like buyers in the frenzied marketplace of a few years ago. If you could breathe into a mirror, you probably could get a loan. Now we are seeing the consequences for this behavior for a number of Downtown San Diego condo owners. In spite of what they say, our experience with lenders like Chase, Wells Fargo, US Bank and others is that they will not reasonably modify a loan. To be fair, these lenders have the "short sale" departments up and running and are actually reasonable with processing a short sale. It the "Cash for Condo" theory. Instead of fixing the current condo loan, let's just turn the unit into a short sale and let the bank lose more money. Same government equals same theory.

By Sharyn & Victoria Crown, Coronado and Downtown San Diego real estate brokers

This is part of a series of articles entitled, New Condos, Downtown San Diego Style