San Diego Housing Bubble News and Analysis

Is it still occupied, by your friend or anyone else? If it is, the bank will most likely give him some time to clear out in an orderly manner, aka cash for keys.

It is occupied by only him.

What do you mean by time to clear it out? The auction date is middle September. Is that BS? Assuming the auction happens and someone buys it that day, is there a mandatory period for him to be able to take his stuff out? Seems like I will need to go pick up my stuff soon.

Friend is just completely worn down, so he has little information and I think is just shellshocked (he's been in the house for 10+ years). So if there's anything that he should be doing I would appreciate that advice to pass on too. He still thinks he will get assistance from whatever the relief program is. He is a business owner and just bleeding everywhere and they already denied him once because of something to do with this expenses? He said it didn't get approved but he believes their information was incorrect since so re-applied.

Also have another question -

His house looks good on paper, fairly high sq. footage, fairly large lot - but the house itself is old and has major issues - like cracked foundation in multiple areas/leaking pipes etc.

I am hoping this gives him extra leverage with the bank? If someones looking at this place on paper - if they assumed the house was in excellent condition the loan due is still pretty high. Like the property itself is probably worth more than the house, but no way is the entire package anywhere worth what is owed. When bidders decide on these properties - do they just do a drive by and look at the facts on paper? I really don't think someone would want to buy this house for for even half what the starting auction price will probably be(but i have no idea how these auctions work) - and even at that price my friend could have probably come up with the money + a premium via family to buy it if the bank would have just worked with him. I know it's a complicated scenario, just wondering what your thoughts are.

Lets say it does go to auction and I can find out from my buddy the date. Can I take pictures of all the major house flaws and put in a pamphlet and give to all the bidders at the auction? Or would that be not allowed? I would be really excited to do that, but wondering if that would be considered interfering with an auction or something...

Get your stuff off the property, then who cares if it is extended or not. This has a good chance of happening, and it is alot better to start looking now then when you have a 24 hour notice. DOnt rely on a banks kindness to a friend to protect your stuff.

As for your friends loan mod, if he isn't in the black right now, and I mean able to afford his house pre-bubble without problem, then he wont get the mod no matter what. Why would a bank modify a loan when that person has no chance to repay the loan. That is regardless of what the property is actually worth. If they know he cant afford it, why shouldnt they try to get whatever principal they can back and call it a loss? What does strining it out hoping he gets back on his feet do for them?

It would be allowed, but what would be the point? It either reverts to the bank or it is sold to the third party. Either way, your buddy is out.

It's normal to give the original owner some time to move out, even if there's no law that says it should happen ... simply because the new owner is interested in getting the property in a decent condition (i.e. that the original owner does not pour cement down all sinks before leaving).

Anx I am to lazy to give the long version of what happens, but suffice it to say, there is a little dependency on the value of the personal property. Under 300 bucks verses over 300 bucks. In your case they have to publicly post that there is property there and then it goes into storage. Eventually you will lose it though. My advice is to get it and get it quick. No telling what can happen to it (vandals and other stuff).