LISC San Diego Foreclosure Plan Final Word03 Version1

LISC San Diego-Helping Neighbors Build Communities

San Diego County Mortgage Foreclosure Crisis

2008-2009

Presented to

Joe Horiye

LISC San Diego

Presented by Trinity Investment Capital

Art Rivera Vice President

April 2009

April

1Prepared by Trinity Investment Capital April 15 2009


Table of Contents

I Executive Summary-San Diego County Mortgage Foreclosure Crisis

A Overview of Mortgage Crisis

B Impacts of Crisis

1 Individuals and Families

a Economic

b Social

2 Neighborhoods and Community

3 Regional Economy

C Environment that lead to the Crisis

II Foreclosure Crisis Strategies

A Public

B Private Sector

1 Lending Institutions

2 Local Developers and Investors

a Hallmark Communities

b Investors

C Local Nonprofits

III Challenges and Gaps to Existing Strategies

IV Mortgage Foreclosure Program and Services

A Pre ndash ForeclosureForeclosure Prevention 2Prepared by Trinity Investment Capital April 15 2009


B REO Properties San Diego NCST Strategy ndash The First Look Program

Chart A Pre ndash ForeclosureForeclosure Prevention

Chart B REO Properties San Diego NCST Strategy

V NCST Target Communities

A Tier I Communities

1 City Heights

2 Logan Heights Barrio Logan

B Tier II Communities

1 Southeastern San Diego

The opinions expressed represent solely the opinions of the author not those of LISC San Diego or Local Initiative Support Corporation or of any of the persons entities or organizations providing support to or affiliated with these entities The findings and conclusion of this report are solely the responsibility of the author This study was performed with the support of LISC San Diego with editing and production by Barbara Hall Coastal Collaborative Consultants The Corporation has full rights to use and distribute this document



I San Diego County Mortgage Foreclosure Crisis

Executive Summary

This paper aims to describe an overview of the foreclosure crisis in San Diego with a focus on two major elements - the National Stabilization Program and a series of recommendations that take into account current market factors and long term affordability via homeownership

In October 2008 San Diego County ranked as the 6th highest foreclosure rate in the nation As of 2009 the nation has experienced an exponential rise in foreclosures and San Diego currently ranks 23rd in the country The foreclosure rate for San Diego is higher than for the state average in general with only San Bernardino and Riverside counties having greater numbers of foreclosed homes The 2008 total of 31099 notices of default (NODs) are a 54 percent increase over 2007 Home foreclosures for December totaled 1253 up 20 from the previous month There were 17712 foreclosures within San Diego County a 141 increase over 2007 The trend appears to be on the upswing as the effects of CA Senate Bill 1137rsquos have diminished and only delayed foreclosures temporarily

San Diego County which in 2004 ranked as the least affordable housing market in the country has dropped to 26th as local prices fell and incomes rose However the National Association of Home Builders reports that 446 percent of homes sold from October through November of 2008 were affordable to households earning the median income of $72100 The target areas designated by the San Diego Housing Commission (SDHC) as Neighborhood Stabilization Program (NSP) areas have census tracts where 70 to 80 of local residentrsquos incomes are well below the AMI These areas also tend to be the oldest housing stock in the county

The San Diego region has a number of nonprofit organizations (NPOs) that have maximized human capital focused on assisting distressed consumers Among the most solid is Community HousingWorks (a Community Development Corporation) which is the largest CDC to dedicate an entire department to foreclosure counseling

4

In 2007 CHW released their foreclosure-specific offshoot Housing Opportunities Collaborative (HOC) to stand alone as a nonprofit dedicated to assisting foreclosure distressed homeowners The HOC is a democratically operated collaborative with

Prepared by Trinity Investment Capital April 15 2009


over 40 members They represent the best foreclosure activities in the Western US Their collaborative structure maximizes resources and has been recognized and awarded by a number of organizations and elected officials In addition the HOC has been invited to many other jurisdictions to share their business model

Politically San Diego has been experiencing budgetary shortfalls and credit issues long before the current crisis the 2009 recession has worsened the budget issue All political leadership are focused on the budget and has been recently worsened due to State shortfalls and a HUD request for a multi-million dollar refund of previous yearsrsquo CDBG funding that was not properly justified

Political sentiment and willingness to work on the foreclosure crisis is evident but the budgets are heavily constrained and many of the critical players are under increasing budgetary stress and more than half the City Council seats are newly elected with no significant political leadership experience

The San Diego City Neighborhood Stabilization Program (NSP) targets specific zip codes 92102 92104 92105 92113 92114 and 92154 These zip codes include the San Diego neighborhoods known as Barrio Logan Logan Heights San Ysidro Otay Mesa City Heights and Southeastern San Diego

A most glaring gap for the San Diego market is the lack of funding for pre-and-post foreclosure counseling In order to stabilize impacted neighborhoods there is a need outreach to those facing foreclosure and to potential buyers that will own and live in their purchased homes driving residential stabilization Improving outreach counseling and HOC ldquoHOME clinicsrdquo will increase the ability of workforce and first time buyers to purchase REO inventory that currently is sold to investors

Another gap is the lack of access to Real Estate Owned (REO) portfolio data Investors are bidding on NSP target area REO properties with multiple offers thus discouraging owner occupant purchasers One of the strategies to overcome the access issue is to work with national REO portfolio owners Fannie Mae and the National Community Stabilization Trust to have them consider providing better real time data through a ldquofirst lookrdquo program that would give access to NSP transactions before release to the



general market The current strategy to circumvent aggressive investors is to assist owner occupants in buying ldquoshort salerdquo properties

This report contains a pilot concept recommending an REO real estate brokerage sales model that sells foreclosed REO property through a local nonprofit acting as the REO broker This provides a more equitable opportunity for owner-occupants to purchase homes in NSP target areas The model would provide a no cost long term solution and help stabilize communities while providing financial support for many of the services needed by residents

Other strategies are included in the report but there is a dearth of capital available for affordable housing in San Diego As such we offer no firm strategy other than recommending that a consortium of San Diego stakeholders work to facilitate the creation of a collaborative enterprise for REO acquisition and disposition Bringing together locally capitalized stakeholders could create as investment pool revolving loan fund in the range of $2 to $4 million dollars that could ldquojump startrdquo a larger wave of community stabilization investment

Due to manpower and capital limitations it is recommended that any geographic pilot activities target City Heights and Logan HeightsBarrio Logan neighborhoods These two LMI communities were selected due to their public transportation orientation and the fully developed community support structuresinfrastructure already available in these communities They are both lsquolivewalkrdquo communities and are recipients of the local LISC ldquoNeighborhoods Firstrdquo initiatives

In the first quarter of 2009 we have seen low-and-moderate neighborhood market segment heat up as properties are receiving multiple bids driving up prices The trend appears restricted to the LMI market as these homes are seen as profitable by investors other sectors are still moving slowly

Currently the City Heights market has become a hot market The CDCs and stakeholders are experiencing frustrating volatility in the City Heights market The frustration appears to be driving early stage discussions for creation of a small localized consortium with revolving fund that will focus on working through the National Community Stabilization Trust (Trust) to target REO acquisition The Trustrsquos



ldquoFirst Lookrdquo program component is now more appealing than ever as it promises to offer early access 15 discounts and real bidding on better real estate opportunities

This report demonstrates that the San Diego market has enormous human capital dedicated to the crisis but has little financial capital and agencies are under increasing budgetary constraints

Given the tenor of the recessionary economy resilient thinking and collaborative actions appear to be the norm into the unpredictable future LISC leadership could be the spark that stimulates collaborative neighborhood resources to create local solutions that will encourage a larger wave of investment



A The Mortgage Crisis Overview

About a third of REO properties are located in low-and-moderate-income (LMI) mostly minority and immigrant communities in the City of San Diego Escondido Chula Vista El Cajon and Oceanside Nearly 28 of NODs issued were to homeowners in these communities The incidence of foreclosure in the low-and-moderate-income (LMI) remains at much higher rates than the rest of the County The highest rates of foreclosure are impacting LMI neighborhoods While the median home price in the County is near $400000 and prices in the county have declined on average 30 per cent We are seeing evidence of plummeting prices in the Neighborhood Stabilization Program (NSP) target areas where average home prices are in the 30 to 50 percentiles in LMI areas

City REOs Loan Amount NODs Loan Amount

City of San Diego 591 $190256009 1646 $579151629

Escondido 180 $53127434 379 $124754253

Chula Vista 112 $39826378 337 $114752862

El Cajon Bostonia 140 $40572640 290 $111377905

Oceanside 90 $28031839 230 $78044017

The study also reports that 58 of the REO in LMI income communities are owned by 10 banks



San Diego County Top Institutions with REOs Institutions REOs Loan Amount BANK OF AMERICA 14 $ 2226470 COUNTRYWIDE 266 $ 86155164 AMERICArsquoS WHOLESALE LENDER 88 $ 29573591

Total 368 CHASE HOME MORTGAGE 68 $ 22789105 WASHINGTON MUTUAL CHASE 79 $ 29368450

Total 147 UNKNOWN 84 $ 2054450 EXECUTIVE 72 $ 23039325 DEUTSCHE BANK 59 $ 20651065 WELLS FARGO 49 $ 14481292 LITTON LOAN SERVICING 48 $ 15351623 US BANK 47 $ 16344829 AURORA LOAN SERVCING 46 $ 17698392 SAXON MORTGAGE 34 $ 11789989

Grand Total 954 $ 291523745

Source Bouton and Associates 2008

B Impacts of Crisis


a Economic

Greater challenges to economic self-sufficiency Homeownership is the primary method for individuals and families particularly lower income and moderate households - to build assets create wealth and overcome poverty Decreases in property values means individuals and families who owe more than their properties are worth lose the bulk of their assets and wealth

Individuals and families are no longer able to finance equity from their homes to pay for their childrenrsquos college education or other major financial needs



Credit scores that people have worked to build or repair are reduced making it harder for them to access future credit opportunities car and student loans open bank accounts and even secure jobs in certain industries

Lower-income borrowers will be perceived to be even greater risks by investors and will pay greater costs for mortgage loans for which they do qualify

b Social

A 2007 survey conducted by the American Psychological Association found that nearly half of Americans identified housing costs including rent and mortgage payments as significant sources of stress

Mental health specialists are reporting that financial difficulties defaulting

mortgages and foreclosures are leading to increased incidences of anxiety disorders depression domestic violence marital problems and addictive behaviors such as alcoholism and gambling and in a few cases suicide among Americans

The Brookings Institution estimates that over the next two years nearly two

million children will be directly impacted when their families lose their homes to foreclosure These children will have their education disrupted strained relationships and lose their sense of security

Counseling staff at the SDSU Foundationrsquos and MAAC Projectrsquos Driving Under

the Influence (DUI) programs report an increase in numbers of clients many of whom cite the economy and housing issues as the main reasons for their heavy use of drugs and alcohol


Lower home and property values MDA Data Quick found that San Diego County median prices went down to $328000 in September 2008 down from $350000 in August and 30 below September 2007rsquos median price of $470000 The current median home value for the county is $285000



Homeowners with strong credit who are in safe fixed-rate loans and who are paying their bills on time are suffering from the reduction in property values and home equity wealth associated with foreclosures in their neighborhoods

City

Median Sales Price Change

June ndash August 2008

San Diego

Chula Vista

Escondido

El Cajon

Oceanside

-73

-76

-143

-96

-92

Source Bouton amp Associates 2008

Foreclosed properties that are not well maintained lend to the physical deterioration of neighborhoods further decreasing property values and exacerbating perceived and real safety issues

Abandoned foreclosed properties attract criminal activity as they become attractive nuisances for drug addicts and street gangs

Reduction in consumer base and loss of profits for neighborhood businesses when residents are forced to move out of the area or have to cut back on spending to meet their mortgage payments Less retail sales reduces tax revenues for the cities counties and states

Reduced property taxes collected by local government to support infrastructure vital programs and services and other public expenditures



3 Regional Economy

Surplus of vacant properties and limited access to financing reduces need to construct housing resulting in less work for thousands of carpenters and other building trades workers

Jobs in other occupations within the housing industry cluster (engineers architects surveyors equipment and building material suppliers etc) are also negatively impacted

Finance related jobs continue to be cut resulting in higher unemployment rates Financial giant Citibank laid-off over 10000 workers while Caterpillar with subsidiaries such as Solar Turbines located in San Diego announced plans to lay-off 20000 employees

Job losses and fear of job security has reduced consumer spending on retail goods travel and personal services These industry sectors have also been impacted with companies closing stores and facilities across the country resulting in increasing unemployment and home foreclosures


Many San Diegans particularly lower and moderate income minorities and immigrants purchased homes that they couldnrsquot really afford

Housing values were increasing in urban neighborhoods with the influx of new residents mostly young adults who desired to live close to work and the downtown area

Historic discriminatory practices that limited homeownership properties were reduced creating opportunities for homeownership There is tremendous value and desire for homeownership among lower and moderate income households

Many lower and moderate income minority and immigrant homebuyers had limited knowledge and information about homeownership and financial



products Homeownership is the main and most accessible strategy to build assets and wealth in the United States

Condo conversions reduced the supply of affordable rental housing forcing lower and moderate income households to move further East North and South of the border Many San Diegans felt pressured to buy for fear of being pushed out of the real estate market and their communities

Affordable housing was available to purchase in Riverside and Imperial Counties this would require longer commute times to work and separation from family and other support systems for many households Regrettably many bought homes in distant suburbs when gasoline costs were about $2 per gallon In late 2008 the region saw dramatic price increases to near $5 per gallon and resulting economic stress and escalation in foreclosures

LMI San Diegans were willing to take on greater risks and even ldquobadrdquo loans to become homeowners

Many real estate and lending professionals seized on the opportunities created by this environment targeting LMI minority and immigrant communities for unconventional loan products

Buyers who would never qualify for traditional loan products were able to become homeowners without really understanding the terms of their loans and often willing to pay the high mortgages because of the pressure to buy

There was little to no enforcement of mortgage brokerage regulations

US fiscal and foreign policies have negatively impacted national and local housing markets resulting in the current economic crisis

Economic downturn exacerbated the situation as increases in gas and oil prices and subsequently utilities and most consumer goods created greater financial burdens on households already struggling to pay high mortgages

Wages did not keep up with real costs of living Economic development strategies created a two-tier employment system ndash high salary professionals



and technology jobs and low-wage service sector jobs Traditional middle-class jobs in manufacturing and other sectors were lost in the region as these were sent off-shore to countries with lower labor and business costs


A Public

White House

President Obama unveiled his foreclosure prevention strategy which will give up to 5 million of Americans access to low-cost mortgage refinancing eliminate restrictions that prevent responsible homeowners with reduced equity from refinancing and benefitting from current low interest rates that will reduce their payments provide incentives for loan servicers to modify mortgages and prevent foreclosure and support the Treasury Department and the Federal Reserve with buying securities backed by Fannie Mae and Freddie Mac mortgages to provide stability and liquidity in the marketplacerdquo These policies are evolving on a daily to weekly basis

Government Sponsored Enterprises (Freddie Mac and Fannie Mae)

Targets loan servicing companies that collect mortgages for sale and distribute them to investors Targets borrowers who are three months behind on loans for owner-occupied properties and owe 90 or more than the current home value Interest rate is reduced so borrower pays no more than 38 of income for housing expenses andor loan are extended from 30 years to 40 years and for some the principal amount may be deferred interest-free Fannie Mae will offer some of its REO portfolio at a 15 percent discount Newer details of their program(s) are being developed

Office of Housing and Urban Development

HUD Neighborhood Stabilization Program (NSP) provides block grants to eligible jurisdictions for land banks acquisition rehab and sale of homeownership and rental properties Demolition of foreclosed properties is also an eligible use as well as first-time homebuyer education for buyers purchasing foreclosed properties A second phase of NSP funding is expected in summer 2009 14Prepared by Trinity Investment Capital April 15 2009


HUD Foreclosed Properties works with private agents to sell properties directly to homebuyers and investors There are very few HUD foreclosed homes in the region

Federal Housing Administration

HOPE for Homeowners program will create refinance mortgages for some borrowers who are having difficulty making their payments but can afford a new loan insured by HUDs Federal Housing Administration (FHA)

Federal Deposit Insurance Corporation

Proposes establishing standards for loan modifications and providing guarantees for loans meeting those standards The government would compensate loan servicers for losses in cases of re-default (when a borrower receives a modified loan but then ends up becoming delinquent on the new mortgage)

California Housing Finance Agency

National Foreclosure Mitigation Counseling Program assists housing counseling agencies in the state to expand foreclosure counseling services to California homeowners at risk Qualifying agenciesmdashboth rural and urbanmdashthat participated in the application are receiving sub-grants to strengthen their foreclosure counseling services

Community Stabilization Home Loan Program aims to help first-time homebuyers purchase homes in communities hardest hit by the foreclosure crisis First-time homebuyers will be eligible for below-market interest rate loans to purchase foreclosed homes in the following zip codes - 92102 92104 92105 92113 92114 and 92154 These zip codes mirror the San Diego NSP zip targets

State of California Governorrsquos Office

The Governor sponsored a bill that requires loan servicers to offer a 90-day ldquostayrdquo for the foreclosure process for owner-occupied homes that have received notices of default Lenders could be exempted from the stay by proving they have an aggressive modification program Loan modifications would be modeled on the approach used by the FDIC New monthly payments would not exceed 38 of borrowers incomes Lenders could reduce the interest rate increase the loan 15Prepared by Trinity Investment Capital April 15 2009


length up to 40 years andor defer some of the principal balance until the home is sold or refinanced Such loan modifications could cut payments by 25 to 30

California Assembly

SB1137 goes beyond federal laws and requires lenders and servicers to 1) contact borrowers (or engage in a prescribed process to do so) to schedule telephone or in-person meetings on restructuring options before beginning the foreclosure process 2) requires a 60-day notice to be given to tenants of buildings facing foreclosure before they can be removed from a rental housing unit and 3) allows fines of up to $1000 a day for owners of foreclosed properties that fail to adequately maintain them

County of San Diego

Proposes to establish a loan program for first-time homebuyers to purchase and reduce REO properties in target communities

City of San Diego Mayorrsquos Office

Mayorrsquos Foreclosure Task Force will focus on 1) Increasing demand getting more buyers safely into the real estate market 2) marketing pre-foreclosure and foreclosure prevention services offered throughout the city through the Housing Commission website and 3) Preserving neighborhoods discussed but declined establishing a new code enforcement ordinance modeled after the City of Chula Vista ordinance Offers online help via the Housing Commission web portal

Redevelopment Agency

The agency is exploring using its funding to rehabilitate foreclosed properties

San Diego Housing Commission (SDHC)

SDHC is the designee for the Cityrsquos NSP funds They are exploring changing their property acquisition procedures to expedite development efforts including vacant or blighted properties and will recommend that the City Council consider focusing funds from the Community Development Block Grant (CDBG) program for the next two years on eligible activities that address the foreclosure issue The major part of the Commissionrsquos NSP award will employ their existing first-time homebuyer 16Prepared by Trinity Investment Capital April 15 2009


loan program to reduce REO properties in target communities by providing subsidized financing to first time home buyers (lt120 AMI)

The Cityrsquos NSP program focuses on the areas hardest hit by high-cost mortgage loans The arearsquos foreclosure data were overlaid by high-cost loans per 1000 by census tract then overlaid by City Council Districts (3 4 7 and 8) and the six hardest hit zip codes were derived as the NSP target areas 92102 92104 92105 92113 92114 and 92154

The NSP has a budget of $68 million to assist First time Home Buyers in the lt120 AMI category this will serve about 92 ndash 130 households Other uses of NSP include homebuyer education and counseling and demolition of REO properties by the City to facilitate redevelopment efforts It will explore using its Lead Hazard Mitigation funds to improve and ldquoright sizerdquo obsolete or deteriorated homes

The NSP funds those at lt50 AMI with a $21million budget

For homebuyer education there is $50000 budgeted

San Diego Reinvestment Task ForceCapital Collaborative

RTF was the earliest identifier of the impending foreclosure crisis They facilitated a convention of diverse stakeholders to address the mortgage crisis at which pre-foreclosure and foreclosure prevention services were identified as a critical need

Over time the group identified the need for capital resources to preserve neighborhoods and to create investment in the poorest neighborhoods The Capital Collaborative and Land Bank were founded The focus was to leverage private investor resources to purchase foreclosed properties for homeownership sales and rental properties However as the end of 2008 saw the official declaration of a ldquoRecessionrdquo the Capital Collaborative was undone by lack of investor support and withdrawal of previous investment commitments In March 2009 the RTF was cut from the Cityrsquos CBDG funding due to budget constraints and is currently in flux and operationally limited



City of Chula Vista

Community Development will allocate CDBG funding to support pre-foreclosure and foreclosure prevention services

Code Enforcement Division has established foreclosure ordinance that identifies properties very early in the foreclosure process requires registration a fee and conformity to code and when out of compliance owners faces fines This code enforcement policy has gained national attention and is being adopted in many jurisdictions

Neighborhood Stabilization Program will provide funding for First Time Homebuyer program to provide $40000 to $70000 in assistance for qualified buyers who participate in CHW education and counseling program and some funding for demolition to accommodate redevelopment

B Private Sector


Private lending institutions maintain properties that are foreclosed in their REO portfolios Homebuyers and investors can negotiate and directly purchase properties from the institutions through real estate agents

Bank of AmericaCountrywide

Owner Occupied Proactive Home Retention Program will systematically modify troubled mortgages with interest rate and principal reductions First-year payments of principal interest taxes and insurance will be targeted to equate to 34 of the borrowers income

Modified loans feature limited step-rate interest rate adjustments to ensure annual principal and interest payments increase at levels with minimal risk of payment shock Modification options include among others moratorium of foreclosures FHA refinancing under the HOPE for Homeowners Program interest rate reductions which may be granted automatically through streamlined processing principal reductions on pay option adjustable rate mortgages that restore lost equity for certain borrowers and waiver of loan modification fees and prepayment



penalties for subprime and pay option ARM loans owned by Countrywide and its affiliates

Foreclosure Relief Program targets eligible servicing customers who suffered foreclosure or are currently at serious risk of foreclosure having made only minimal payments since the time their mortgages were originated by Countrywide Will provide support to customers with loans serviced by Countrywide who face imminent foreclosure providing financial assistance with their transition from home ownership Some loan modifications will be subject to compliance with servicing contracts and some will require investor approval

Wells Fargo

The Bank provided grants to NeighborWorks and other organizations in foreclosure prevention counseling and assistance purchased Wachovia Bank and World Savings and will absorb the REO portfolios of these servicers and will offer loan modifications for eligible borrowers Recently announced an NSP related grants competitive grants program

JP Morgan Chase

Chase will cut monthly payments by lowering interest rates and temporarily reducing loan balances Will offer mortgage modifications for borrowers at risk and institute an independent review process to eliminate all unnecessary foreclosures The bank will hire and train more staff to handle the added caseload that the plan will generate In March 2009 the bank opened nine ldquoHousing Centersrdquo to assist borrowers A site is located in La Mesa a San Diego suburb

IndyMacFDIC

Loan modifications will be available for most borrowers who have a first mortgage on their primary residence owned or securitized and serviced by IndyMac and is seriously delinquent or in default IndyMac will also work with other consumers who are unable to pay their mortgages because of payment resets or changes in the borrowers repayment capacities Interest rates for eligible mortgages would be capped at 65 The modifications would be designed to achieve sustainable payments at a 38 debt-to-income ratio of principal interest taxes and



insurance through a combination of interest rate reductions extended amortization and principal forbearance IndyMac will not put any delinquent loans into the foreclosure process during the 90 days it takes to implement its new plan and will institute an independent review process to eliminate all unnecessary foreclosures

Citibank

The bank will halt foreclosures for borrowers who live in their own homes have decent and stable incomes and can make lowered mortgage payments The bank intends to reach out to 500000 homeowners who are not currently behind on their mortgage payments (13 of all Citigroup mortgages) but who are on the verge of default Efforts will assist targeted borrowers by adjusting their rates reducing principal or increasing the term of the loan



The for-profit development company has purchased foreclosed properties in Chula Vista and has expressed some interest in connecting to nonprofit homebuyer education programs to reach qualified prospective buyers The cost of new construction is high and financing nearly impossible There are signs that there will be an increase in acquisitionrehab transaction in the multifamily sector

b Investors

Current anecdotal knowledge of the market indicates that the Brokersrsquo Price Opinion (BPO) is $40 to $70 on the $100 At these low prices individual investors and investment groups are seizing opportunities to purchase properties for resale and rentals Purchases of REOs by investors represent a good percentage of current sales in many LMI urban neighborhoods with lower housing prices access to public transportation and older homes with unique design features



B National and Local Nonprofits

National Community Stabilization Trust (the Trust)

An unprecedented collaborative effort of LISC Enterprise Community Partners the Housing Partnership Network and NeighborWorks America the Trust facilitates the transfer of foreclosed and abandoned property from financial institutions nationwide to localities to promote neighborhood stability Creates a bridge between owners servicerREO departments and state and local housing providers and guarantees at least a 15 discount on all real estate purchases made through the Trust It also offers a ldquofirst lookrdquo which allows its partners to evaluate and purchase the REO before it is released for general sale to the real estate broker community

Rural Community Assistance Corporation

RAC received funding from NeighborWorks America National Foreclosure Mitigation Counseling Program to assist housing counseling agencies in the state to expand foreclosure counseling services to California homeowners at risk Qualifying agenciesmdashboth rural and urbanmdashthat participated in the application are receiving sub-grants to strengthen their foreclosure counseling services

Community HousingWorks

Founder and member of the HOC provides financial and homebuyer education and counseling assistance with connecting to and negotiating loan modifications for homeowners assist homeownersrsquo transition to renters Manages and disburses first-time homebuyer loans for City of San Diego and Chula Vista The organization is contracted by the City of Chula Vista to offer homeownership education counseling and loans for first time buyers purchasing foreclosed homes

Price Charities

Provides funding to organizations engaged in financial and homebuyer education and counseling providing assistance with connecting to and negotiating loan modifications for homeowners and assisting homeowners transition to renters The organization has considered establishing a land bank to purchase manage



and sell REO properties in the City Heights neighborhood The organizationrsquos PITCH Home Loan Program offers assistance for first-time homebuyers in specific City Heights neighborhoods

Housing Opportunities Collaborative (HOC)

HOC Community Partners is the preeminent nonprofit providing financial and homebuyer education and counseling legal assistance and services assistance with negotiating loan modifications for homeowners supportive services such as mental health counseling and emergency financial assistance and assistance to homeowners making the transition to renters

Member organizations are HUD certified and provide financial and homebuyer education and counseling to qualified buyers of foreclosed properties Additionally HOC has been at the forefront of identifying foreclosure fraud scams in target communities and is working with the District Attorneyrsquos office on this issue The HOC offers comprehensive Foreclosure Home Clinics throughout the region and has been invited to help develop comparable collaborative in other jurisdictions

Union Plus Save My Home

Emergency financial aid for AFL-CIO affiliated union members for mortgage payments

Central Labor Council - Labor Participation Agreement

Through a Labor Participation Agreement with the United Way of San Diego County CLC Existing emergency financial assistance for struggling union members and emergency housing assistance program launches in March 2009 to assist union members with up to $1000 for mortgage assistance



III Challenges and Gaps to Existing Strategies 1 Lack of access to capital to purchase foreclosed REO properties

The San Diego Capital Collaborative business objective was to bring patient capital to the underserved LMI market The Collaborativersquos major investors California Public Employees Retirement System (Cal PERs) and WaMu withdrew from their investment commitments before year end 2008 The NSP funding ($9 million) available from SDHC is not patient capital and is under budget constraints by the city administration to not take undue risk and not add administration for the NSP funds NSP housing activities are limited to the Housing Commissionrsquos First Time Buyer Program Most REO single family homes in LMI areas are being ldquocherry pickedrdquo by local investors There is little desirable REO inventory for homebuyers as the best inventory has been acquired by investors The investor market dynamic reduces owner occupant transactions thereby reducing neighborhood stabilization A few nonprofit organizations (NPOs) including CHW San Diego Community Housing Corporation Coalition of Neighborhood Councils and the MAAC Project have well-established relationships and lines of credit with lenders but are facing tightening credit standards in this unstable market

Recommendations

LISC can assist with the formation of a locally funded revolving loan pool to access REO asset managers in meaningful transactions

LISC should consider investing low cost short term loans for the acquisition and rehabilitation of homes to NPOs in NSP areas

Promote and sponsor ldquoNSP informational meetingsrdquo to educate local REO holders and sellers about the NSP funds and processes

23

The NCST- Trust or large REO holders could negotiate REO management by a local nonprofit that would facilitate REO sales by a local nonprofit-RealtorBroker to ensure that the REO in the NSP target areas would prioritize transactions to local first time homebuyers using the jurisdictionsrsquo NSP



programs Local ldquoowner occupantrdquo buyers would also get a ldquofirst lookrdquo at REO and opportunities to purchase properties

Strategically target private foundation investor and public agency resources to purchase properties in LMI income neighborhoods with high concentrations of foreclosures

Work with NPOs to negotiate expanded and fixed lines of credit Work with local and county government to create incentives (ie local tax

credits rebates streamline development review processes etc) for private investment into the purchase of foreclosed REO properties for sale to owner-occupants in redevelopment areas

2 Limited resources for pre-foreclosure and foreclosureloss mitigation services Although there is a high demand for the HOME clinics offered by the HOC and its member organizations there are few resources to support their activities

Recommendations

Funding the HOC helps accelerate potential use of the SDHC NSP funds so that they will be able to exhaust the NSP funds before the 18 month deadline This may position the San Diego to secure additional NSP funds from other jurisdictions that were unable to employ the funds

Work with local foundations to secure resources and create programs that specifically support these services

3 Some geographic areas lack organizational technical capacity to establish the collaborations needed to expand the impact of strong CDCs

Recommendations

Transfer successful programs from initial target areas to these areas Promote and create incentives for partnerships and collaborative efforts between nonprofits in these communities and those with access to capital demonstrated capacity and track record



LISC could target one of these neighborhoods for capacity building funding or support

Recommend keeping strategies along public transit oriented corridors as auto fuel prices will increase again and LMI residents have narrower margin for economic error

4 Lack of detailed data on foreclosed properties

The San Diego NSP approaches neighborhood stabilization from the macro level targeting its NSP resources for properties in specific LMI zip codes To best assess the inventory of foreclosed properties and stabilize neighborhoods efforts to purchase and sell REO properties must be approached from the micro level and target smaller geographic areas such as blocks

Recommendations

The Trust (NCST) offers an opportunity to review and analyze data very early in the REO stage The data can be utilized to maximize neighborhood impact

Recommend that the Trust provide additional data fields for their REO lists these include the approximate value of foreclosed properties housing type room count square footage year built lot size and amenities is needed

Work with local university Real Estate departments to develop GIS information for the NSP areas

Work with local stakeholders electeds and other nonprofits to gather information on REO properties in targeted neighborhoods

5 Lack of strong and coordinated leadership ndash the Mayor and City Council have different priorities and strategies for addressing the foreclosure crisis

Recommendations

LISC is a neutral arbiter and convener of diverse stakeholders A successful consortium could attract leadership and their resources



6 Assessing current values of REO properties is challenging Current sales prices are creating an unstable real estate market

Recommendations

Work with local universities to create sale price models that reflect the distress and short sales in the marketplace The University of San Diego has shown interesting work in sales indexes tied to hedonic regression models similar to those used in Great Britain

Work with the County Recorderrsquos office real estate agents and title companies to track sales

NPOs such as Community Housing Works have developed underwriting reports and criteria for City Heights and Chula Vista where they have housing counseling programs The methodology used to develop these reports and criteria could be expanded to other communities

7 One of the potential hurdles the housing agencies face is a federal requirement that bank-owned homes be sold at a discount of at least 5 percent below the appraised value The overall discount for all homes sold must be 15 percent

Recommendations

Fannie Mae will sell its properties at a 15 discount The Trust ndashNCST offers at least a 15 discount on their transactions Other servicers can be encouraged to do so as well

9 Early detection and outreach to borrowers to offer loan modification assistance

Delinquent borrowers are inundated with collection calls and mail and often give up hope about holding onto their homes The biggest hurdle is getting people to open their mail to read about modification offers There is a need in San Diego for a single unified message (branding) to reach homeowners early in the pre-foreclosure process in a compelling non-threatening manner but there are no financial resources for effective communications



Recommendations Work with utility companies to develop an early warning data system of

households struggling to make payments as this is often a precursor to mortgage nonpayment and foreclosure

Collaborate with community based organizations that are trusted and well-recognized in the community to do outreach Member organizations of the HOC are well-established housing and service organizations that have daily access to thousands of clients and can perform outreach for pre-foreclosure and foreclosure prevention services

Ask a local television cable company to offer free or near free foreclosure PSAs under a common branding strategy to increase consumer awareness of the HOC and SDHC

The most effective outreach is probably door-to-door contact generated by early recognition indicators like utility bill late-pays and shut offs Additionally AmeriCorps interns could affect this work

Work with partners to launch media campaigns through which local and ethnic media make television newsprint and radio PSAs about available services all under one label or brand so that the consumers know where there is free safe and straightforward help

10 Complicated loans with multiple investors create barriers for loan

modification efforts

The majority of troubled loans were packaged into complex investments Deutsche Bank estimates more than 80 percent of the $18 trillion in outstanding troubled loans have been packaged and sold in slices to investors around the world Experts project that only 20 percent are ldquowhole loansrdquo which will be easier to modify because they have only one owner

Recommendations

Given the nation wide orientation of the Trust -NCST should promote the issue in the national arena



11 Private investors are taking advantage of the crisis purchasing foreclosure properties in lower income communities This reduces neighborhood stabilization and the supply of REO properties in urban communities it is often the first phase of neighborhood gentrification and eventual displacement of LMI residents Recommendations

Establish and implement the REO NCST management strategy Ask the Trust to work with HUD to prioritize the sale of its REO properties for

owner-occupied housing Prioritize the sale of REO properties for owner-occupied housing Establish long-term affordability restrictions on properties sold and managed

by nonprofits and public agencies 12 REO properties in lower income immigrant and minority communities are often out of compliance with local building codes due to the Illegal additions and home repairs made by owners Rehab costs associated with bringing properties to code may be higher than projected prior to property acquisition requiring developers to secure additional subsidies or increase the selling price Recommendations

Work with local real estate agents partner nonprofits and associated vendors to assess properties prior to purchase

Rehabilitation may be a workforce development opportunity it could leverage stimulus dollars

Use building codes to negotiate lower purchase costs of REO properties with lending institutions that carry the costs and responsibilities maintaining and bringing properties into compliance



13 Current Economic Conditions

As more companies layoff workers the state unemployment rate (currently 106) will continue to rise For Latinos the current unemployment rate is 97 and African Americans 126 Unemployment benefits are insufficient to cover household expenses for most people particularly lower paid workers with limited savings and assets Layoffs are also impacting more mature educated and professional workers so foreclosures among these segments of the population are expected to increase as well

The Presidentrsquos economic stimulus package will potentially create millions of new living wage jobs career pathways and provide resources for education health care and social services Transportation expansion and improvement projects (ie freeway expansions managed by SANDAG and Lindbergh Airport expansion) will create employment in the building industry for displaced and entry-level workers Projects and initiatives to reduce energy and water consumption will also stimulate investment and create job opportunities

As these jobs are created efforts must be made to ensure that they offer wage levels and benefits that enable San Diegans to afford the regionrsquos cost of living Despite the mortgage foreclosure crisis home prices are still well out of the reach for many LMI San Diegans According to a 2007 report by the Center on Policy Initiatives of the nearly 1 million full-time workers in the county 577 earned an annual income less than $50000 Another 22 of the regionrsquos workers earned under $25000 With a median home price of $440000 in 2007 the Center for Housing Policy calculated that households needed to earn $143000 a year to afford homeownership While median prices have fallen to the low $300000s households would still need to earn over $100000 to purchase a home and pay no more than 30 of their income towards housing Recommendations

Encourage safety nets such as the contemplated San Diego LISC ldquoCenters for Working Familiesrdquo to promote and establish collaborative efforts that connect San Diegans struggling with job loss or reduction in work hours to job search



and placement training education and employment opportunities to help them find new opportunities and maintain or increase their incomes Link or locate these facilities near community college facilities where users can find free or low cost training

Promote and establish collaborative efforts to link lower and moderate income San Diegans to transit oriented communities As we saw in year end 2008 when gasoline prices reached peak levels many renters living on marginal incomes were squeezed out of their housing

Affordable housing (and NSP programs) should focus on transit orientation The Trust could lobby for federally sponsored mortgage discounts for NSP purchases made within walking radius of a transit corridor or other ldquogreen influencesrdquo

Focus career training education and employment opportunities that will place them on paths to higher paying jobs in growth industries of health care education computer technologies communications biotechnologies energy and natural resource management and conservation

Promote and support initiatives that create ldquogreenrdquo job opportunities for LMI San Diegans For example working with SDGampE and the Water Authority to develop and launch energy and water conservation initiatives that train LMI San Diegans to work for private companies and nonprofits that offer weatherization services to ldquogreenrdquo foreclosed homes other residential and commercial properties


B Pre ndash ForeclosureForeclosure Prevention

Early Detection

To reduce foreclosures in the region stakeholders must identify strategies to detect and identify homeowners who are struggling to make their mortgage payments early in the default process Early detections systems can be established working with utility companies who can track households who are behind in their payments as this is a first sign of the financial trouble that leads



to foreclosure Additionally utility and postal workers servicing target neighborhoods can be trained to identify the early signs of homeowner distress and make available the information for the nonprofit sector for follow up on a face-to-face basis

Outreach to Homeowners

Community-based organizations faith institutions and other entities recognized and trusted by the community can perform outreach homeowners facing default and foreclosures through their services and programs recruiting them to receive counseling and assistance

Loss Mitigation

Homeowners referred by nonprofit organizations can be referred to Level I and Level II counseling offered by community partner organizations of the Housing Opportunities Collaborative (HOC) and their loan servicers to help them avoid foreclosure Level I counseling will involve credit repair budgeting and debt management Level II counseling will assist homeowners navigate the complex process of negotiating loan modifications providing assistance with short-sales moving through the foreclosure process and transitioning to rental housing

Supportive Services and Workforce Development

As homeowners receive Level I andor Level II counseling they will receive any needed supportive services such as legal guidance and assistance mental health counseling emergency financial assistance job referrals and placement and assistance with applying for public benefits Unemployed homeowners will be referred to organizations such as the HOC community partners and other entities for job search and placement assistance

Referrals and Assistance with accessing rental housing

After counseling homeowners who face foreclosure will be referred to HOC community partners to receive assistance with searching for and applying for rental housing



Financial education and counseling for homeowners

Homeowners who are able to avoid foreclosure will be referred to HOC community partners to participate in financial education programs and receive individual financial counseling to ensure they develop the knowledge and skills needed to effectively manage their money and maintain homeownership

B REO Properties Proposal for a San Diego NCST Trust Strategy ndash A First Look Program for Owner-Occupants

The San Diego First Look program envisions a pilot program where a local nonprofit is contracted to manage a servicerrsquos REO portfolio of housing units located in the San Diego NSP target areas Under this proposal the REO owner or manager will contract a vetted nonprofit to manage the sale of the REO inventory in the NSP target areas instead of a Realtor with no vested interest in the stability of the community

This conceptual program would allow consumers in target areas to get a ldquofirst lookrdquo at REO inventory before release to the general Realtor market This no-cost model maximizes community stability by allowing a specific entity to manage the real estate transactions with priority for NSP users and owner-occupants in lieu of investors

Furthermore additional first look purchase opportunities would be extended to local nonprofit development entities in NSP areas such as the Jacobs Center for Non-Profit Innovation Coalition for Neighborhood Councils and Price Charities A protection could be added to ensure investors are allowed to buy after an initial 45 to 90-days of offering to the NSP owner-occupant class

This concept could be piloted and be successful in San Diego owing to the strength local connectivity and experience of the nonprofit sector There is early discussion at this time to create a local capital consortium The very preliminary outline includes

Multiple collaborative funders to the capital pool

Operational target funding would be in the $2 to $4 million range

One entity (LLC) would facilitate the REO transfers and provide loan servicing




33

The loan pool would be a revolving credit facility

Properties would be NSP targeted and tied to the NCST or other major REO owner with minimum 15 sales discount

Target consumers are at lt120 AMI

The geographic targets are likely to be the Tier I neighborhoods cited in this report

Leverage of local dollars to subsidize those at the lowest incomes

Primary focus to insure long term housing through use of the NSP

Low-and- Moderate-Income and NSP market activity appears to be escalating creating increasing competition with the investor class The City Heights market is now a hot market This economic tension is driving early stage discussions and willingness to work collaboratively to fund a consortium The NCST business plan is now appearing much more realistic especially as stakeholders keep losing every REO bid

San Diego has the human and social capital is highly operational ISC leadership and support could be the unifying force to create the initial core group of investors whose success will encourage other stakeholders to join


Given the tenor of the recessionary economy resilient thinking and collaborative actions appear to be the norm into the unpredictable future



34

Outreach to Homeowners CBOs FBOs AmeriCorps HOC

Partners

Early Detection

Level II Counseling

Loss MitigationSupport and Assistance with Short-

SalesForeclosure

Referrals and Assistance with accessing rental

housingLevel I CounselingCredit Repair

Budgeting Debt

Utility CompaniesPostal workers City Code Enforcement Property surveys (nonprofits) Private Lenders 211 calls for assistance

HOC Partners

Loss Mitigation

On-going financial education and counseling for homeowners


Legal Mental Health Counseling Emergency Financial Assistance Job referrals and placement Public Benefits Advocacy and Assistance etc

HOC Partners Labor Partnership Agreement AFL-CIO Union Plus Save My SD Workforce Partnerships Public Agencies




35

Servicer Servicer Servicer Servicer Servicer

National Community Stabilization Trust Facilitates transition of REO properties in targeted neighborhoods from private brokers to qualified

NPOs and direct sale to SDHC

San Diego Housing

Commission

20 ndash 30 units of REO properties in target NSP

neighborhoods

Community Housing Works or CDC (TBD)

Manage and Sale properties as REO Property Broker in all NSP and NCST target areas

Jacobs Center for Non-Profit InnovationCoalition for Neighborhood Councils

Potentially buy or manage and rehab REO properties in

Price Charities

Potentially buy or manage and

rehab REO properties

Consumer First-time Homebuyer Programs and Local Capital Collaborative HOC OTS Rebuilding Together Others

Chart B REO Properties San Diego NCST NSP REO Strategy



The Trust and organizations participating in the continuum can focus on several communities in the region to pilot the model for foreclosure services delivery and Trust activities Communities will be selected for the pilot based on the following criteria

Percentage of residents who are LMI income

Numbers of REO Properties

Numbers of NODs and Trustee Sales

Priority for local government NSP and other stabilization programs

Community Capacity Network of CBOs faith-based civic associations academic institutions business associations etc with

o Access to capital and successful track record of real estate management development rehabilitation and sales

o Track record of effective community outreach and engagement

o Established and successful financial and homeownership education and counseling programs

o Established legal mental health emergency assistance workforce development and other support services programs

o Track record of successful collaborative efforts and resource leveraging

Political will and support for community stabilization initiatives from elected officials and other leaders

Close proximity to public transportation routes (buses trolley train etc) to promote and facilitate longer-term transit-oriented development initiatives

Targeted for redevelopment by local government


36



The City Heights neighborhood of San Diego and Logan Heights meet all the criteria identified above and are recommended as targeted communities for potential NCST activities

1 City Heights

Criteria Community Profile

of residents who are LMI income Nearly 80 of residents are LMI Numbers of REO Properties 126 (Bouton and Associates 2008) Numbers of NODs and Trustee Sales 306 (Bouton and Associates 2008) Priority for local government NSP and

other stabilization programs Targeted by the City of San Diego for the NSP

Community Capacity Community Housing Works Price Charities OTS SDCHC City Heights Foundation Episcopal Community Services


Todd Gloria supports neighborhood stabilization strategies

Close proximity to public transportation routes (buses trolley train etc) to facilitate longer-term Transit-Oriented Development

Extensive bus lines run throughout the neighborhood connecting to Downtown Mission Valley trolley lines and the Amtrak and Coaster trains

Targeted redevelopment areas Price Charities and City Heights Foundation


37


2 Zip Codes 92102 92113 (Logan Heights Sherman Barrio Logan)


of residents who are LMI Near 80 Numbers of REO Properties 128 Numbers of NODs and Trustee Sales 325 Priority for local government NSP and

other stabilization programs This area is two of the target NSP zip codes

Community Capacity Community Housing Works MAAC Project Children of the Rainbow SDOP and JOB LISC Neighborhoods First area


The 8th Council District representative is president of the council and veteran member of the City Council He has already designated funds for foreclosure

Close proximity to public transportation routes (buses trolley train employment etc) to facilitate longer-term Transit-Oriented Development

Trolley runs through the community connecting it to downtown Tijuana to the South and all coastal communities and other trolley trains and bus lines to major employment retail and entertainment centers This trolley line is historically the most heavily used in the county

Targeted redevelopment areas This area is in alignment for continued development as the downtown core expands eastward The Comm22 mixed use project (budget $130 million) is near ground breaking


38





of residents who are LMI Approximately 75 of the residents are LMI

Numbers of REO Properties 95 Numbers of NODs and Trustee Sales 280 Priority for local government NSP and

other stabilization programs Targeted by the City of San Diego as an NSP area

Community Capacity Jacobs Foundation is well capitalized and has expressed interest Coalition of Neighborhood Councils has secured a line of credit to purchase foreclosed properties


City Councilmember Young is supportive of the proposed local NCST strategy


Trolley runs through the community connecting it to employment business and entertainment centers to the west

Targeted redevelopment areas The Southeast Economic Development Corporation (SEDC) develops affordable housing and revitalized neighborhood commercial districts


39


Table of Contents

I Executive Summary-San Diego County Mortgage Foreclosure Crisis

A Overview of Mortgage Crisis

B Impacts of Crisis


a Economic

b Social


3 Regional Economy



A Public

B Private Sector




b Investors

C Local Nonprofits

III Challenges and Gaps to Existing Strategies


A Pre ndash ForeclosureForeclosure Prevention 2Prepared by Trinity Investment Capital April 15 2009







1 City Heights








Executive Summary





4




























City of San Diego 591 $190256009 1646 $579151629

Escondido 180 $53127434 379 $124754253

Chula Vista 112 $39826378 337 $114752862


Oceanside 90 $28031839 230 $78044017







Grand Total 954 $ 291523745


B Impacts of Crisis


a Economic







b Social













City



San Diego

Chula Vista

Escondido

El Cajon

Oceanside

-73

-76

-143

-96

-92








3 Regional Economy


























A Public

White House



















California Assembly


County of San Diego



















City of Chula Vista




B Private Sector










Wells Fargo


JP Morgan Chase


IndyMacFDIC





Citibank





b Investors











Price Charities
















Recommendations




23









Recommendations




Recommendations








Recommendations






Recommendations





Recommendations





Recommendations















Recommendations



























Early Detection







Loss Mitigation





















33













34


Partners

Early Detection

Level II Counseling


SalesForeclosure



Budgeting Debt


HOC Partners

Loss Mitigation








35




San Diego Housing

Commission


neighborhoods





Price Charities






















36




1 City Heights











37













38















39







1 City Heights








Executive Summary





4




























City of San Diego 591 $190256009 1646 $579151629

Escondido 180 $53127434 379 $124754253

Chula Vista 112 $39826378 337 $114752862


Oceanside 90 $28031839 230 $78044017







Grand Total 954 $ 291523745


B Impacts of Crisis


a Economic







b Social













City



San Diego

Chula Vista

Escondido

El Cajon

Oceanside

-73

-76

-143

-96

-92








3 Regional Economy


























A Public

White House



















California Assembly


County of San Diego



















City of Chula Vista




B Private Sector










Wells Fargo


JP Morgan Chase


IndyMacFDIC





Citibank





b Investors











Price Charities
















Recommendations




23









Recommendations




Recommendations








Recommendations






Recommendations





Recommendations





Recommendations















Recommendations



























Early Detection







Loss Mitigation





















33













34


Partners

Early Detection

Level II Counseling


SalesForeclosure



Budgeting Debt


HOC Partners

Loss Mitigation








35




San Diego Housing

Commission


neighborhoods





Price Charities






















36




1 City Heights











37













38















39



Executive Summary





4




























City of San Diego 591 $190256009 1646 $579151629

Escondido 180 $53127434 379 $124754253

Chula Vista 112 $39826378 337 $114752862


Oceanside 90 $28031839 230 $78044017







Grand Total 954 $ 291523745


B Impacts of Crisis


a Economic







b Social













City



San Diego

Chula Vista

Escondido

El Cajon

Oceanside

-73

-76

-143

-96

-92








3 Regional Economy


























A Public

White House



















California Assembly


County of San Diego



















City of Chula Vista




B Private Sector










Wells Fargo


JP Morgan Chase


IndyMacFDIC





Citibank





b Investors











Price Charities
















Recommendations




23









Recommendations




Recommendations








Recommendations






Recommendations





Recommendations





Recommendations















Recommendations



























Early Detection







Loss Mitigation





















33













34


Partners

Early Detection

Level II Counseling


SalesForeclosure



Budgeting Debt


HOC Partners

Loss Mitigation








35




San Diego Housing

Commission


neighborhoods





Price Charities






















36




1 City Heights











37













38















39


























City of San Diego 591 $190256009 1646 $579151629

Escondido 180 $53127434 379 $124754253

Chula Vista 112 $39826378 337 $114752862


Oceanside 90 $28031839 230 $78044017







Grand Total 954 $ 291523745


B Impacts of Crisis


a Economic







b Social













City



San Diego

Chula Vista

Escondido

El Cajon

Oceanside

-73

-76

-143

-96

-92








3 Regional Economy


























A Public

White House



















California Assembly


County of San Diego



















City of Chula Vista




B Private Sector










Wells Fargo


JP Morgan Chase


IndyMacFDIC





Citibank





b Investors











Price Charities
















Recommendations




23









Recommendations




Recommendations








Recommendations






Recommendations





Recommendations





Recommendations















Recommendations



























Early Detection







Loss Mitigation





















33













34


Partners

Early Detection

Level II Counseling


SalesForeclosure



Budgeting Debt


HOC Partners

Loss Mitigation








35




San Diego Housing

Commission


neighborhoods





Price Charities






















36




1 City Heights











37













38















39





Grand Total 954 $ 291523745


B Impacts of Crisis


a Economic







b Social













City



San Diego

Chula Vista

Escondido

El Cajon

Oceanside

-73

-76

-143

-96

-92








3 Regional Economy


























A Public

White House



















California Assembly


County of San Diego



















City of Chula Vista




B Private Sector










Wells Fargo


JP Morgan Chase


IndyMacFDIC





Citibank





b Investors











Price Charities
















Recommendations




23









Recommendations




Recommendations








Recommendations






Recommendations





Recommendations





Recommendations















Recommendations



























Early Detection







Loss Mitigation





















33













34


Partners

Early Detection

Level II Counseling


SalesForeclosure



Budgeting Debt


HOC Partners

Loss Mitigation








35




San Diego Housing

Commission


neighborhoods





Price Charities






















36




1 City Heights











37













38















39




b Social













City



San Diego

Chula Vista

Escondido

El Cajon

Oceanside

-73

-76

-143

-96

-92








3 Regional Economy


























A Public

White House



















California Assembly


County of San Diego



















City of Chula Vista




B Private Sector










Wells Fargo


JP Morgan Chase


IndyMacFDIC





Citibank





b Investors











Price Charities
















Recommendations




23









Recommendations




Recommendations








Recommendations






Recommendations





Recommendations





Recommendations















Recommendations



























Early Detection







Loss Mitigation





















33













34


Partners

Early Detection

Level II Counseling


SalesForeclosure



Budgeting Debt


HOC Partners

Loss Mitigation








35




San Diego Housing

Commission


neighborhoods





Price Charities






















36




1 City Heights











37













38















39



City



San Diego

Chula Vista

Escondido

El Cajon

Oceanside

-73

-76

-143

-96

-92








3 Regional Economy


























A Public

White House



















California Assembly


County of San Diego



















City of Chula Vista




B Private Sector










Wells Fargo


JP Morgan Chase


IndyMacFDIC





Citibank





b Investors











Price Charities
















Recommendations




23









Recommendations




Recommendations








Recommendations






Recommendations





Recommendations





Recommendations















Recommendations



























Early Detection







Loss Mitigation





















33













34


Partners

Early Detection

Level II Counseling


SalesForeclosure



Budgeting Debt


HOC Partners

Loss Mitigation








35




San Diego Housing

Commission


neighborhoods





Price Charities






















36




1 City Heights











37













38















39


3 Regional Economy


























A Public

White House



















California Assembly


County of San Diego



















City of Chula Vista




B Private Sector










Wells Fargo


JP Morgan Chase


IndyMacFDIC





Citibank





b Investors











Price Charities
















Recommendations




23









Recommendations




Recommendations








Recommendations






Recommendations





Recommendations





Recommendations















Recommendations



























Early Detection







Loss Mitigation





















33













34


Partners

Early Detection

Level II Counseling


SalesForeclosure



Budgeting Debt


HOC Partners

Loss Mitigation








35




San Diego Housing

Commission


neighborhoods





Price Charities






















36




1 City Heights











37













38















39
















A Public

White House



















California Assembly


County of San Diego



















City of Chula Vista




B Private Sector










Wells Fargo


JP Morgan Chase


IndyMacFDIC





Citibank





b Investors











Price Charities
















Recommendations




23









Recommendations




Recommendations








Recommendations






Recommendations





Recommendations





Recommendations















Recommendations



























Early Detection







Loss Mitigation





















33













34


Partners

Early Detection

Level II Counseling


SalesForeclosure



Budgeting Debt


HOC Partners

Loss Mitigation








35




San Diego Housing

Commission


neighborhoods





Price Charities






















36




1 City Heights











37













38















39














California Assembly


County of San Diego



















City of Chula Vista




B Private Sector










Wells Fargo


JP Morgan Chase


IndyMacFDIC





Citibank





b Investors











Price Charities
















Recommendations




23









Recommendations




Recommendations








Recommendations






Recommendations





Recommendations





Recommendations















Recommendations



























Early Detection







Loss Mitigation





















33













34


Partners

Early Detection

Level II Counseling


SalesForeclosure



Budgeting Debt


HOC Partners

Loss Mitigation








35




San Diego Housing

Commission


neighborhoods





Price Charities






















36




1 City Heights











37













38















39












City of Chula Vista




B Private Sector










Wells Fargo


JP Morgan Chase


IndyMacFDIC





Citibank





b Investors











Price Charities
















Recommendations




23









Recommendations




Recommendations








Recommendations






Recommendations





Recommendations





Recommendations















Recommendations



























Early Detection







Loss Mitigation





















33













34


Partners

Early Detection

Level II Counseling


SalesForeclosure



Budgeting Debt


HOC Partners

Loss Mitigation








35




San Diego Housing

Commission


neighborhoods





Price Charities






















36




1 City Heights











37













38















39




Wells Fargo


JP Morgan Chase


IndyMacFDIC





Citibank





b Investors











Price Charities
















Recommendations




23









Recommendations




Recommendations








Recommendations






Recommendations





Recommendations





Recommendations















Recommendations



























Early Detection







Loss Mitigation





















33













34


Partners

Early Detection

Level II Counseling


SalesForeclosure



Budgeting Debt


HOC Partners

Loss Mitigation








35




San Diego Housing

Commission


neighborhoods





Price Charities






















36




1 City Heights











37













38















39



Citibank





b Investors











Price Charities
















Recommendations




23









Recommendations




Recommendations








Recommendations






Recommendations





Recommendations





Recommendations















Recommendations



























Early Detection







Loss Mitigation





















33













34


Partners

Early Detection

Level II Counseling


SalesForeclosure



Budgeting Debt


HOC Partners

Loss Mitigation








35




San Diego Housing

Commission


neighborhoods





Price Charities






















36




1 City Heights











37













38















39









Price Charities
















Recommendations




23









Recommendations




Recommendations








Recommendations






Recommendations





Recommendations





Recommendations















Recommendations



























Early Detection







Loss Mitigation





















33













34


Partners

Early Detection

Level II Counseling


SalesForeclosure



Budgeting Debt


HOC Partners

Loss Mitigation








35




San Diego Housing

Commission


neighborhoods





Price Charities






















36




1 City Heights











37













38















39














Recommendations




23









Recommendations




Recommendations








Recommendations






Recommendations





Recommendations





Recommendations















Recommendations



























Early Detection







Loss Mitigation





















33













34


Partners

Early Detection

Level II Counseling


SalesForeclosure



Budgeting Debt


HOC Partners

Loss Mitigation








35




San Diego Housing

Commission


neighborhoods





Price Charities






















36




1 City Heights











37













38















39







Recommendations




Recommendations








Recommendations






Recommendations





Recommendations





Recommendations















Recommendations



























Early Detection







Loss Mitigation





















33













34


Partners

Early Detection

Level II Counseling


SalesForeclosure



Budgeting Debt


HOC Partners

Loss Mitigation








35




San Diego Housing

Commission


neighborhoods





Price Charities






















36




1 City Heights











37













38















39






Recommendations






Recommendations





Recommendations





Recommendations















Recommendations



























Early Detection







Loss Mitigation





















33













34


Partners

Early Detection

Level II Counseling


SalesForeclosure



Budgeting Debt


HOC Partners

Loss Mitigation








35




San Diego Housing

Commission


neighborhoods





Price Charities






















36




1 City Heights











37













38















39



Recommendations





Recommendations















Recommendations



























Early Detection







Loss Mitigation





















33













34


Partners

Early Detection

Level II Counseling


SalesForeclosure



Budgeting Debt


HOC Partners

Loss Mitigation








35




San Diego Housing

Commission


neighborhoods





Price Charities






















36




1 City Heights











37













38















39











Recommendations



























Early Detection







Loss Mitigation





















33













34


Partners

Early Detection

Level II Counseling


SalesForeclosure



Budgeting Debt


HOC Partners

Loss Mitigation








35




San Diego Housing

Commission


neighborhoods





Price Charities






















36




1 City Heights











37













38















39

























Early Detection







Loss Mitigation





















33













34


Partners

Early Detection

Level II Counseling


SalesForeclosure



Budgeting Debt


HOC Partners

Loss Mitigation








35




San Diego Housing

Commission


neighborhoods





Price Charities






















36




1 City Heights











37













38















39





Loss Mitigation





















33













34


Partners

Early Detection

Level II Counseling


SalesForeclosure



Budgeting Debt


HOC Partners

Loss Mitigation








35




San Diego Housing

Commission


neighborhoods





Price Charities






















36




1 City Heights











37













38















39















33













34


Partners

Early Detection

Level II Counseling


SalesForeclosure



Budgeting Debt


HOC Partners

Loss Mitigation








35




San Diego Housing

Commission


neighborhoods





Price Charities






















36




1 City Heights











37













38















39



34


Partners

Early Detection

Level II Counseling


SalesForeclosure



Budgeting Debt


HOC Partners

Loss Mitigation








35




San Diego Housing

Commission


neighborhoods





Price Charities






















36




1 City Heights











37













38















39



35




San Diego Housing

Commission


neighborhoods





Price Charities






















36




1 City Heights











37













38















39


















36




1 City Heights











37













38















39




1 City Heights











37













38















39













38















39















39

LISC San Diego Foreclosure Plan Final Word03 Version1

Business

Transcript of LISC San Diego Foreclosure Plan Final Word03 Version1