Several weeks ago, I wrote a post about the proposed expansion of the Del Mar Fairgrounds to include a hotel and convention center.

I recently received a copy of a letter written by Drew Cady, Del Mar CA resident and concerned citizen, to the Del Mar Fairgrounds Board on December 11, 2009.  If this plan is approved, it will seriously impact the quality of life for residents and visitors of the villages of Del Mar & Solana Beach and adversely impact the delicate wetlands adjacent to this fairgrounds.  In Drew’s opinion, it is an “ill-conceived, greedy attempt to secure revenues for the State, by sacrificing nature and our local communities.”  If you agree, or have an opinion to share, please comment.  You can also voice your opinion directly by writing your own letter to the board…

Here’s the letter:

Letter to the Board of Directors, 22nd District Agricultural Association, State of California commenting on the draft EIR for the expansion and development of the Del Mar
Fairgrounds

Dear Board Members of the Del Mar Fairgrounds, Agricultural District No.33:

I attended a meeting of the Fairgrounds Board of Directors several weeks ago and
spoke to you during the public 3ʼ commentary.  What I said is that I believe the quality of
life, not just for human beings, but for all the creatures who live on and near the Del Mar
Fairgrounds land will be radically and negatively altered forever by the enormous
development which you have set forth in your plan.  This development is wrong and
represents the greedy interests of a few people who are shortsighted and unaware of
the fragile ecosystem which exists around this massive fairgrounds land.  The other
evening while at the Inn LʼAuberge Hotel, I viewed an historic photograph of the river
basin that is now the Del Mar Fairgrounds.  Before me was a serene wilderness which
represented perhaps one of the most wonderful aspects of this relatively undisturbed
coastal area, up until man placed his heavy footprint upon it.  The slow takeover and
alteration of this marshland and delta which is the outflow of waters from a major
watershed along southern California has been mostly without regard for the damage
that it has caused to the natural environment.

We have learned a great deal in recent decades about how critically important these
natural environments are in maintaining a sustainable lifestyle for those of us who live in
this region, as well as for our offspringsʼ future.  To overdevelop this fragile land area, as you have depicted in your ʻmaster planʼ is thoughtless and reckless and damaging to
the future potentials of this region.  Like any environment, ours relies upon a cycle of life and a restorative water culture, which can endure all the burdens which mankind places
upon it.  I dare say, we are at a critical juncture in our history; one, that perhaps we will look back upon in future years, and realize that without significant efforts to preserve our watersheds, we would not have been given the privilege to continue to reside in this coastal desert land.  The earth is a naturally sustaining ecosystem which miraculously absorbs so much of the industrial and overdevelopment schemes of man, but we are rapidly approaching a time when these fragile systems will not be able to counteract the enormous pressure put upon them by Manʼs non-sustainable usage of natural
resources.

We are at this crossroad together and it is only through careful planning that we will be
able to assist the earth as it attempts to restore from all of the plunder it has endured
during the ʻreign of manʼ.   Our erroneous political structures and overactive
development instincts have proven us a weak caretaker of these lands, but we now
have perhaps our last opportunity to reverse this behavior and begin to work with the
earthʼs naturally sustaining systems in building a healthier and friendlier environment in
which to sustain our race and take care of all the other living beings on earth.

You can either ignore the pleas of what you might regard as a radical environmentalist
without any rationale for how to better utilize these Fairgrounds, or you can recognize
that your master plan represents a short sighted personal gain for few, at the expense of
the masses and our revered nature.

Effective February 1, 2010 the Department of Housing and Urban Development (HUD) will relax FHA rules that previously prohibited insuring mortgages on homes that are owned by the seller for less than 90 days – a move that could help expedite the rehabilitation and resale of foreclosure properties. 

In a housing market where tighter lending requirements have made FHA financing the only option for some buyers, this 90-day policy has (1) kept some homebuyers from being able to purchase affordable homes and (2) prevented the quick resale of foreclosed properties, which affects the ability of communities to stabilize and rebuild.

Flipping: before and after

On multiple occasions, this has affected my business personally -  I’ve shown a buyer a home that had been purchased by an investor, rehab’d and put back on the market, i.e. “flipped”, but because they could not obtain an FHA loan on the property if it was owned less than 90 days, these homes were beyond their reach.  The process of buying, fixing, and reselling foreclosed properties can often be achieved in less than three months time, so this policy was hurting both buyers and investor sellers.

“FHA borrowers, because of the restrictions we are now lifting, have often been shut out from buying affordable properties,” said FHA Commissioner David H. Stevens. “This action will enable our borrowers, especially first-time buyers, to take advantage of this opportunity.”

To ensure FHA borrowers are protected from inflated prices, the policy has certain restrictions, including:

• All transactions must be arms-length and there can be no identity of interest between the buyer and seller.
• If the sales price of the property is 20 percent or more above the seller’s acquisition cost, the lender must meet specific conditions for the waiver to apply.
• The waiver is limited to forward mortgages, and cannot be used under the Home Equity Conversion Mortgage (HECM) purchase program.

You can read the full text of the HUD waiver here.  The temporary waiver, which will expand access to FHA mortgage insurance to many, will be in effect for a period of one year, unless extended or withdrawn by the FHA. With this in mind, now may be an excellent time to purchase a foreclosure as a short-term investment!  Call me, Eva Meier, if you’d like assistance taking advantage of this new policy - there are many opportunities in coastal north San Diego County! 760-815-1318.

Reverse mortgages (RM) are not for everyone, but for seniors who have owned their home for a long time and have lots of equity, it may be a great option. Especially for those who have little income or retirement to enjoy in their later years, taking out a RM can provide a highly improved quality of life and make good on the term “golden years”.

I have to admit – until fairly recently, I associated the phrase “reverse mortgage” with SCAM! It was largely out of ignorance. As long as the terms are clearly explained, and completely understood by the borrower, it can be a godsend.

To provide more information about the pros and cons of these relatively obscure financial vehicles, locally renown financial consultant and radio personality, George Chamberlin, and local mortgage broker Mehran Aram are co-hosting an informational workshop 2 weeks from today on January 27th, from 6pm to 8pm at the Encinitas Community and Senior Center in Encinitas CA. The event is free, open to the public, and light refreshments will be served. Reservations are requested by calling 877-600-1130.

Maybe I’ll see you there!  By the way, this is not intended as an endorsement of reverse mortgages, nor the opinions either speaker…