In the Pacifica Tribune (6-24-09) a local real estate agent ran a full-page ad in which one column was headed "Real Estate and Loan News." She asserts, among other things, that: "Inventory is Low ... Currently there are 47 single family homes for sale in Pacifica down from over 100 this time last year. ... Today there are only 4 bank owned properties on the market." But according to RealtyTrac, a Southern California company that tracks foreclosures, there were 60 bank-owned properties (REO) as of June 21, 2009, in Pacifica’s 94044 zip code. Since then, the number has declined to 56, indicating a huge "shadow inventory" of REOs in Pacifica if banks are not putting them on the market.
How Big Is the Problem?
The chart below is a record of Pre-Foreclosure Notices over the past two years published in the Pacifica Tribune. The data are for the northern San Mateo County cities of Pacifica, San Bruno, Daly City, South San Francisco, and Brisbane. The data are incomplete because these notices may be published in other newspapers of record such as the San Mateo County Times.
(click chart to enlarge)
Estimates are that between 40 percent and 80 percent of these houses in pre-foreclosure progress to the auction stage of the foreclosure process in San Mateo County. RealtyTrac’s data provide a more complete picture of the problem of homeowners in trouble. Pacifica has seen a large increase in pre-foreclosure notices and foreclosure auctions since the last quarter of 2008. The figures are from the latter part of each month cited:
This building at the north end of Old County Road has a half-empty front and the sign advertises spaces from 256 square feet to 6,000 square feet.
The north corner of Old County and Rockaway Beach Avenue lost a clothing boutique recently and the second-story space above sits vacant.
This former restaurant has been vacant for a while. It is for sale for $2.75 million, with plans for a massive new building on the site approved.
Walk one block to the west onto Dondee Way and see a real sign of the times. This former jewelry store has a new office with a sign outside that reads "Bank Owned & Foreclosures...Ask for FREE List...No Better Time to Buy!"
July data from DataQuick indicate that the number of real estate sales in Pacifica rose 6.7 percent from one year ago, while the median price here dropped to $550,000, a 23.2 percent decline from one year ago.
In the Pacifica Tribune legal notices, foreclosure auction notices hit an all-time high of 73 in the first week of September but have declined sharply to a low of 40 this past week. That is the lowest level of trustee auction notices since the first week of May 2008.
The highest price paid for a house in Pacifica in July was $1,105,000. Despite that sale, the average per-square-foot sale price in Pacifica declined 30.3 percent, year to year, to $396 in July. It is now one of the lowest prices in San Mateo County.
I’m against the $85,000,000,000.00 bailout of AIG.
Instead, I’m in favor of giving $85,000,000,000 to America in a We Deserve It Dividend.
To make the math simple, let’s assume there are 200,000,000 bonafide U.S. Citizens 18+.
Our population is about 301,000,000 +/- counting every man, woman and child. So 200,000,000 might be a fair stab at adults 18 and up..
So divide 200 million adults 18+ into $85 billon that equals $425,000.00.
My plan is to give $425,000 to every person 18+ as a We Deserve It Dividend.
Of course, it would NOT be tax free. So let’s assume a tax rate of 30%.
Every individual 18+ has to pay $127,500.00 in taxes. That sends $25,500,000,000 right back to Uncle Sam.
But it means that every adult 18+ has $297,500.00 in their pocket. A husband and wife has $595,000.00.
What would you do with $297,500.00 to $595,000.00 in your family? Pay off your mortgage – housing crisis solved. Repay college loans – what a great boost to new grads Put away money for college – it’ll be there Save in a bank – create money to loan to entrepreneurs. Buy a new car – create jobs Invest in the market – capital drives growth Pay for your parent’s medical insurance – health care improves Enable Deadbeat Dads to come clean – or else
Remember this is for every adult U S Citizen 18+ including the folks who lost their jobs at Lehman Brothers and every other company that is cutting back. And of course, for those serving in our Armed Forces.
If we’re going to re-distribute wealth let’s really do it...instead of trickling out a puny $1000.00 ( “vote buy” ) economic incentive that is being proposed by one of our candidates for President.
If we’re going to do an $85 billion bailout, let’s bail out every adult U S Citizen 18+!
As for AIG – liquidate it. Sell off its parts. Let American General go back to being American General. Sell off the real estate. Let the private sector bargain hunters cut it up and clean it up.
Here’s my rationale. We deserve it and AIG doesn’t.
Sure it’s a crazy idea that can “never work.”
But can you imagine the Coast-To-Coast Block Party!
How do you spell Economic Boom?
I trust my fellow adult Americans to know how to use the $85 Billion We Deserve It Dividend more than I do the geniuses at AIG or in Washington DC .
And remember, The Davis plan only really costs $59.5 Billion because $25.5 Billion is returned instantly in taxes to Uncle Sam.
Ahhh...I feel so much better getting that off my chest. Kindest personal regards, Art A.C.Davis, A Creative Guy & Citizen of the Republic PS: Feel free to pass this along to your pals as it’s either good for a laugh or a tear or a very sobering thought on how to best use $85 Billion!!