SAN DIEGO (KGTV) — The January floods were just the first challenge for homeowners in the underserved communities of San Diego. Before the water even receded, phones were ringing, mailers slipped under the front door, and realtors were knocking, offering a quick way out.
Southcrest residents say they have been preyed upon by low-ball offers from real estate agents who insist they are just trying to help.
And it’s not the first time this neighborhood has been flooded. Back in 2019, ABC 10News heard neighbors complain that every time it rains here, it floods.
Residents told us back then about the poor storm drain system and their complaints to the city.
“There’s no drainage," says Greg Montoya, who lives on Beta Street and has been vocal about the issue for years.
WATCH: Montoya says he's optimistic he and other flood victims will win their negligence lawsuit against the city. He alleges that the city's inaction builds a strong case, especially given the flood from January.
We followed through when the neighborhood flooded again eight months ago during the January downpour.
We found that many have tired of the constant flooding, tempting them to cash out instead of waiting for insurance and government money to come.
"Right after the flood, we were swarmed with door-to-door real estate agent salespeople trying to buy the properties throughout the whole neighborhood," Montoya told Team 10. "Everybody's knocking on your door trying to, you know, get you to sign a contract."
Fliers were placed under doors, promising the highest off-market price, and enticing homeowners in a flood zone to "sell your house as is." The most aggressive of the offers came with a check replica including a price and signature line filled out.
One of them was made out specifically to Montoya for $435,397.
Montoyra told us the realtor "started at 385 [thousand] price, and I just basically ignored him, and now he's raised it up to 435 [thousand]."
Other offers promise “no repairs or cleaning, zero fees and a fast closing" — phrases that appeal in a flood zone where FEMA, insurance and charity payments can be slow in coming, or way under the actual cost of repairs.
Montoya received $4,000 from FEMA, insurance sent him $82,000, the San Diego Housing Commission provided $11,000, his church donated $6,200 and the SDGE Senior Citizen Program chipped in $2,000.
That’s a grand total of $105,000, which sounds generous, but estimates to repair his totally destroyed home, including repairing the foundation, were closer to $450,000, making a quick sale seem like a lot less hassle.
But Montoya still declined.
"What they're not telling you is that they're going to offer you pennies on the dollar," Montoya says.
Montoya says his house is appraised at more than a half million dollars; the best offer he got was 100 grand less than that.
WATCH: Montoya explains that although the area is underserved, the lots are huge, so developers see the potential in building multiple units on them.
He’s not alone.
Across the street, Monica Garcia has also been low-balled by a steady stream of realtors from day one. She's determined to hold on to her damaged home.
"The first thing the next morning — 8:30 in the morning — that's the first realtors that came through,” Garcia says.
They made a tempting pitch.
"Telling me to 'Go ahead and drop that shovel down. I can give you a great offer right now. You don't have to do anything. We give you a great offer and you can just walk away,'” Garcia says about the sales pitch.
She stayed and is slowly fixing her damaged home.
The real estate companies looking to buy at below market prices for an investment in the flood zones tell Team 10 they are just trying to give homeowners an easy out option.
And the real estate investor I talked to on the phone who sent Greg Montoya the sample check insists they send these offers regionwide and are not preying on the flood zone.
Monica Garcia disagrees.
"They're giving you 40% to 50% less of what your property value is worth. It's predatorial. They knew people were under distress with the trauma that people incurred," she says.
So, in Southcrest, homeowners believe they are left with two bad choices: Take a loss over time by repairing their damaged homes, or take a quick loss by selling today.
