by Roberta Murphy
I maintain a few Google Alerts, and one of them is for embattled San Diego City Attorney Michael Aguirre and his positively stupid amazing idea of turning San Diego into a Foreclosure Sanctuary.
He intends to stop foreclosures in San Diego, and to prove the power of his convictions has sued Bank of America–and has other banks in his myopic sights.
I was in San Francisco at a real estate conference when the news hit, and even Golden Gate liberals there were rolling their eyes. All tongues were wagging about San Diego real estate falling off the edge of the earth if Aguirre prevails in halting foreclosures in San Diego.
Imagine the possible consequences if such political grandstanding succeeds:
1. What lender would even consider offering home loans in San Diego, without at least a 50 percent down payment (perhaps)?
2. What incentive would any homeowner in San Diego have for keeping their payments current? Foreclosures would be outlawed in San Diego, remember?
3. If you think San Diego real estate and homes are a bargain today, just wait–at least if you are a cash buyer. Prices would fall through the floorboards for sure if lenders are blocked from securing their investments, and abandon the San Diego real estate market entirely.
This is a scenario ripe with possibilities and consequences. We can only hope that courts throw out Aguirre’s folly quickly and that San Diego finds a replacement for City Attorney even faster.
All just my opinion, of course….