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 New! Companion Units can now be processed over-the-counter. Detached one-story units, additions and conversions of garages or accessory structures all qualify. You can also submit permit-ready, no-cost building plans from the County of San Diego.  

Real estate title fraud, also known as deed fraud or property title fraud, occurs when someone illegally transfers the ownership of a property without the true owner’s knowledge or consent. This type of fraud can allow a criminal to take out loans against the property, sell it, or otherwise assume control over it, often leaving the rightful owner unaware until they encounter issues, like foreclosure notices, unpaid bills, or when they attempt to sell or refinance.

1. Forgery of Documents: The fraudster forges documents, often by using fake IDs, to impersonate the owner.
2. Filing Fake Title Documents: These forged documents are then filed with a government office or recorder’s office, which changes the title records.
3. Taking Financial Actions: With the fraudulent title in hand, the criminal might take out a mortgage or sell the property, pocketing any funds obtained.
4. Owner Discovery: Often, the rightful owner only finds out after receiving unusual correspondence, like mortgage bills, foreclosure notices, or other irregularities.

• Receiving unexpected bills or mail regarding unfamiliar loans or property taxes.
• Notices from banks, lenders, or the government about changes on the property title.
• Difficulty refinancing, selling, or accessing your own property records.

• Title Insurance: This insurance can help protect against financial losses resulting from title fraud.
• Regular Property Record Checks: Periodically checking public property records can help catch changes in ownership.
• Monitor Credit Reports: Many times, fraudulent loans will impact the owner’s credit, so regular monitoring is beneficial.
• Consider Legal Alerts or Services: Some legal services or title monitoring companies offer alerts for any changes made to property titles.
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Real estate title fraud can be complex and difficult to resolve, and prevention is often more effective than trying to recover after fraud has occurred.

California tenants will now have double the time to respond to eviction notices under a new law signed by Gov. Gavin Newsom. Assembly Bill 2347 extends the response period from five to ten business days, giving tenants more flexibility when facing legal challenges during an eviction process. However, landlords argue that this extension could exacerbate existing problems for property owners, particularly when tenants already owe significant amounts of back rent. The law comes at a time of heightened concern for landlords dealing with the aftermath of pandemic-era tenant protections, which led to a surge in unpaid rent and evictions.

Under the current system, landlords must serve tenants with an unlawful detainer notice when seeking eviction, and tenants had five business days to respond. Landlords argue that this timeline is crucial in resolving cases quickly, especially since the process often begins after tenants have already missed rent payments for several months. While tenant advocates argue that the original deadline was too short, property owners like San Francisco real estate attorney Daniel Bornstein emphasize that the eviction process can already take months and that any delay means more financial strain for landlords, who may not see any rent during this extended period.

Though the California Apartment Association did not officially oppose the bill, local landlord groups have voiced concerns. They argue that longer response times lead to unpaid rent piling up, which ultimately gets passed on to new tenants, contributing to increased rent prices. From the landlords' perspective, the law could worsen the financial burden they bear, especially for those who rely on rental income for their livelihoods. They point out that the eviction process is already heavily regulated and extending deadlines without compensating property owners only adds to their losses.

The new law, sponsored by Democratic Assemblymember Ash Kalra, also impacts legal procedures by shortening the time attorneys have to file certain motions regarding errors in a landlord’s eviction complaint. While tenants will benefit from more time to respond, landlords see this adjustment as a mixed bag—allowing the eviction process to move faster at certain stages, but still prolonging the initial response phase, which could delay resolution.

In addition to this new law, landlords have had to navigate a growing number of local regulations that often favor tenants. San Francisco, for instance, passed an ordinance in 2022 giving tenants extra time to fix issues before an eviction case could be filed. However, a state appeals court recently overturned that measure, reinforcing the need for a balanced approach to eviction laws. Landlords continue to advocate for policies that protect their interests while ensuring tenants meet their rental obligations in a timely manner.

Home prices reached their highest level in the history of the S&P CoreLogic Case-Shiller U.S. National Home Price Index. The mark came in spite of rising mortgage interest rates that have slowed activity.

The data, released by S&P on Tuesday, determined the average price over a three-month period from April to June, showing that prices nationally were 5.4% higher compared to the same end-month the previous year. 

While it may be a record-high for home prices, the annual gain was lower than the 5.9% in May.

The average home prices in the 10-city composite increased by 7.4% annually. The figure was down from the previous month's 7.8%. On the other hand, in a 20-city composite, the rate was 6.5% higher year over year, which was actually down from May's increase of 6.9%, CNBC reported. 

"The upward pressure on home prices is making this the most unaffordable housing market in history," said Bright MLS chief economist Lisa Sturtevant.

"First-time and moderate-income home buyers, in particular, increasingly are being left out of the housing market," she said in NY Post.

In a release, Brian Luke, head of commodities, real and digital assets at S&P Dow Jones Indices, stated that the gap between housing and inflation is larger.

"While both housing and inflation have slowed, the gap between the two is larger than historical norms, with our National Index averaging 2.8% more than the Consumer Price Index," said Luke.

"That is a full percentage point above the 50-year average. Before accounting for inflation, home prices have risen over 1,100% since 1974, but have slightly more than doubled (111%) after accounting for inflation," he added further.

Out of the 20 cities, it was New York that showed the highest annual gain. 

Prices in NY rose up to 9% in June. Next was San Diego with an annual increase of 8.7%. Next to San Diego was Las Vegas, which showed 8.5%.

Home values were also shown by price tier in the most recent report. By perusing the large markets over the past five years, it discovered that 75% of the markets showed that low-price tiers rise faster.

"New York's low tier has the largest five-year out-performance, rising nearly 20% above the overall New York region," Luke said in the release.

 Current Mortgage Rates

• 30-Year Fixed Mortgage Rate: Dropped to 6.06% from 6.37% last week.
• 20-Year Fixed Mortgage Rate: Fell to 5.70%, down 41 basis points.
• 15-Year Fixed Mortgage Rate: Reduced to 5.34%, a 32-basis-point drop from last week.
• 5/1 Adjustable-Rate Mortgage (ARM): Decreased to 6.18%, a drop of 17 bps.
• 7/1 ARM: Now at 6.15%, down 27 bps.
• 30-Year FHA Loan: Slightly decreased to 5.41%, down 9 basis points.
• 30-Year VA Loan: Reduced to 5.28%.
• 15-Year VA Loan: Dropped to 4.60%, a significant decline of 60 basis points.
• 5/1 VA ARM: Now 5.79%, a 19-bps reduction.

• Federal Reserve Expectations: The Federal Reserve is anticipated to cut the federal funds rate in its September meeting. There is speculation that the Fed may cut sooner.
• Advice on Timing: For those aiming for the lowest possible mortgage rates, it might be wise to wait until late 2024. However, with current rates already showing substantial decreases, it could be a good time to buy a home now. Waiting might lead to increased home prices and competition.

• Impact of Rates on Buying: Lower mortgage rates now could lead to increased home prices and competition later if the market heats up. Buyers might find that purchasing sooner rather than later could be  ideal.
• Calculators and Tools: Using mortgage calculators can help in understanding how different rates and terms will affect monthly payments, providing a clearer picture.

• Rate Locking: It's challenging to predict the optimal time for locking in a mortgage rate as rates fluctuate daily. Locking in a rate early can help in budgeting and financial planning.
• Qualifying for Lower Rates: To secure the lowest mortgage rates, it’s beneficial to have a strong credit score, a significant down payment, and a low debt-to-income ratio.

In summary, the current decrease in mortgage rates offers an opportunity for both new homebuyers and those looking to refinance. While future rate cuts might be possible, the current rates are competitive and may warrant action sooner rather than later.

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The latest news on realtor commissions is that the National Association of Realtors (NAR) has reached a national settlement that could change the way real estate agents are paid. The settlement, which was announced on March 15, 2024, could potentially end the 6% commission rate that has been standard in the industry for decades.

According to the settlement, the NAR will pay $418 million in damages to settle lawsuits alleging that the organization and its members artificially inflated commissions. As part of the agreement, the NAR will also eliminate its rules on commissions, which could lead to a reduction in commission rates for real estate agents.

The news has sent shockwaves through the real estate industry, with some experts predicting that commission rates could be slashed by up to 30%. This could have a significant impact on the earnings of the 1.6 million real estate agents who rely on commissions for their income.

The settlement is expected to be filed in court within weeks and still needs to be approved by a federal court. However, if approved, it could have far-reaching implications for the real estate industry and the way that agents are paid.

Key points:

• The National Association of Realtors has reached a national settlement that could end the 6% commission rate.
• The settlement includes a $418 million payment to settle lawsuits alleging artificial inflation of commissions.
• The NAR will eliminate its rules on commissions, which could lead to a reduction in commission rates.
• Commission rates could be slashed by up to 30%, impacting the earnings of 1.6 million real estate agents.
• The settlement is expected to be filed in court within weeks and needs to be approved by a federal court.

Accessory Dwelling Units (ADUs) have been gaining popularity in San Diego and many other areas across the United States for several reasons:

1. Increased Housing Options: San Diego, like many other urban areas, faces housing shortages and high housing costs. ADUs offer a way to increase housing options within existing residential areas without the need for large-scale development projects.
2. Additional Income: Homeowners can benefit financially from ADUs by renting them out to tenants. This additional rental income can help offset mortgage payments or provide supplemental income.
3. Multigenerational Living: ADUs provide an opportunity for multigenerational living arrangements, allowing families to accommodate elderly parents, adult children, or other relatives while still maintaining some degree of privacy and independence.
4. Flexibility: ADUs can serve various purposes, including rental units, guest houses, home offices, or even personal living spaces for homeowners. This flexibility appeals to homeowners looking to maximize the utility of their property.
5. Zoning Regulations: Changes in zoning regulations and permitting processes in San Diego and other areas have made it easier for homeowners to build ADUs. Relaxing restrictions on ADU construction has encouraged more homeowners to consider adding these units to their properties.
6. Environmental Benefits: ADUs can promote sustainability by utilizing existing infrastructure and reducing the need for new construction. They also offer opportunities for energy-efficient design and can contribute to more compact, walkable neighborhoods.

We at Fidelis Private Fund have been financing ADU projects since the the demand to finance such projects started gaining popularity a few years back. This trend aligns with our commitment to providing innovative financing solutions that support sustainable and affordable housing initiatives.