There will be a housing bailout when Hell freezes over........Opps!... Nevermind.

Hell clearly has indeed frozen over

Get ready for the Housing gambler bailout!

House Flippers, Wanna-be real estate kings, Illegal immigrants, and sub prime borrowers who can't pay a credit card bill on time but were given a 1/2 million dollar mortgage nonetheless REJOICE!

Your bad credit, irresponsible behavior, and reckless financial decisions are about to be rewarded!

During the real estate boom billions of dollars in toxic mortgages were made to people with undocumented incomes, and abysmal credit scores with complete disregard to any lending standards.

Recently, the consequences of these idiotic lending practices have been felt by all as foreclosure rates have soared. Banks and hedge funds are losing massive amounts of money, and property values are going down faster than a cheerleader on prom night.

Instead of letting the market play itself out, and letting the bad boys and girls get spanked, the fed is trying to bail out these fools at the expense of the rest of us who actually did things the right way.

... You know... Got a mortgage based on our income, paid our bills on time, had money for a down payment, and actually bought the house to live in, not flip for a quick profit.

The Moral Hazard ramifications of this situation are astounding. People who are not punished for their bad choices will continue to make them in the future, people who did things the right way and see the ignorant and greedy get rewarded for their actions will grow angry, and may be less likely to do things the right way in the future knowing that they will get a far greater reward by being irresponsible.

Read the full story here:

Paulson's mortgage bailout
and
Lenders discuss freeze on intro rates

_________________________________________________________________

WASHINGTON (AP) -- Treasury Secretary Henry Paulson and federal banking regulators are working out the details of a plan to extend lower, introductory interest rates on home loans before they reset at higher levels...

There are an estimated 2.3 million borrowers with poor credit records whose home loans are projected to reset at higher rates through the end of next year. There are fears many of those loans risk default, worsening the nation's soaring foreclosure rate....

Last week, John M. Reich, director of the Office of Thrift Supervision, the federal regulator of the nation's savings and loans, came up with a more modest proposal in which borrowers would get a three-year extension of low initial "teaser" mortgage rates. That plan,would be funded from surpluses in mortgage-backed securities.

______________________________________________________________

So basically to sum up the plan, the borrowers with horrible credit who did not deserve the home in the first place, get to have the low teaser rate locked in for years.

The responsible who got fixed conventional mortgages on good credit, receive no such advantage. The responsible get punished, while the irresponsible get rewarded.

I guess Hell truly has frozen over.

Oversupply of homes for sale reaches 22 year high

Source

WASHINGTON (MarketWatch) -- Sales of existing homes fell for an eighth straight month in October even as more properties came on the U.S. housing market, driving the supply of homes up for sale to the highest level in 22 years, the National Association of Realtors reported Wednesday.

The following facts and figures are staggering...

• The inventory of unsold homes rose by 1.9% to 4.45 million, representing a 10.8-month supply, the highest in at least eight years.

• For single-family homes alone, the inventory of 10.5 months is the highest since July 1985.

• Sales are down 20.7% in the past year and are down 31% from the peak of 7.21 million two years ago.

• The median sales price fell 5.1% in the past year to $207,800. That's the largest year-over-year price decline ever recorded.

This is the part that makes me giggle like a school girl:

As bleak as the data are, the fundamentals of the market don't support a further decline in sales, according to NAR chief economist Lawrence Yun, who said low mortgage rates and job growth should keep sales from falling. While the subprime mortgage market has disappeared, the Federal Housing Administration is picking up its lending.

"I don't anticipate any further major sales declines," Yun said.

Someone needs to give Yun a lesson in supply and demand. Heres one for starters: when you have a record amount of supply, and virtually no demand, prices are going to continue to fall. period.

Never trust a Realtor!

Fed indicates they plan to Destroy the Dollar further.

NEW YORK — The stock market surged Wednesday for a second consecutive session after a top-ranking Federal Reserve official indicated that policymakers could be amenable to lowering short-term interest rates further.

In a speech in New York, Fed Vice Chairman Donald Kohn said the central bank would remain "flexible" and would "act as needed" to prevent the housing crisis and credit crunch from damaging the economy.

After a string of recent comments from Fed officials that they would stand pat, investors embraced Kohn's remarks as a sign that policymakers were reassessing recent signs of economic softness and could cut rates at their Dec. 11 meeting. That would be the third consecutive Fed reduction, after cuts Sept. 18 and Oct. 31.

Source

This is just more pandering to wall street. It is disgusting that the Fed will do anything to save the stock market at the expense of the dollar. How far will they allow the dollar to fall and inflation to rage before something is done?


Perhaps the conspiracy theorist are correct. Won't Americans be much more willing to accept the NAU, and the "Amero" (the proposed new currency between USA, Canada, & Mexico) if the dollar is in rubble.

The Amero and the NAU will be looked at like a savior.

Step 1) Destroy the US Dollar so that the Canadian looney has more value. (Complete)
Step 2) Continue to erode the currency further creating rampant inflation and hardship
Step 3) Propose the NAU and Amero as a solution to the economic disaster
Step 4) Americans gladly hand over sovereignty in order to afford gasoline again
Step 5) Success

Wake up America!

Ron Paul exposes the NAU and the CFR.

The question designed to make him look conspiracy theorist back fired and Americans are waking up to the fact that their national sovereignty is under threat.


The new currency for the North American union. "The Amero"



Proposed Nafta Superhighway.

CNN YouTube Debate was a complete Disgrace

You can read my previous article about the MSM bias and corruption regarding elections here.

This debate was a complete disgrace. Ron Paul received absolutely no time to talk and the two questions he did receive were from people out to discredit him and make him look like wacko.

Question 1: Do you believe in the Conspiracy theory regarding the North American Union?

Ron Paul Schools this Douche Bag

Question 2: Ron Paul, You know you will never win the election, Will you run as a third party candidate?




What I just witnessed was completely shameful, and I am completely convinced that those with power are truly afraid of Paul, and afraid of the revolution that is brewing in America.

Gandhi said,“First they ignore you, then they laugh at you, then they fight you, then you win.”

I am fighting mad now.

Detroit area Condo Market a complete Disaster

This article really hits home, you can read my condo story here.

The housing market in the Detroit area is bad. However, people here seem to have an irrational, almost mentally retarded thinking when it comes to the condo market. Although the condo market was booming 2 years ago, now, people here will not even consider a condo when the price is substantially below rent in the area for a similar unit.

It simply defies all logic and reasoning.

I can almost understand in big bubble markets like Miami or California, why buy a condo for 3,000 a month PTI when you can rent the same place for 1500. Very logical and understandable choice by the consumer to avoid that situation.

In SE Michigan for example, it is just downright dumb. Rent Cost 700 a month, Condo cost 550 a month to OWN. They will avoid buying like a plague.

They Psychology has turned so much, and so quickly here regarding real estate in general, but especially towards condo that it almost defies all reason.

I can only hope that eventually people here will realize that if a condos expenses; Mortgage, Taxes, And Association fee's actually cost less than equivalent rent in the area that it IS A GOOD BUYING OPPORTUNITY FOR THE LONG TERM.

I think with people fleeing the state of Michigan in droves, apartment complex drastically cutting prices and offering incentives fighting over the people who are left, the situation will not recover until 2010-2011.


Housing slump wallops condos

Segment is hardest hit as construction, sales plummet

Nathan Hurst / The Detroit News

BLOOMFIELD HILLS -- Metro Detroit's once-booming condo market has hit the skids.

From Downriver up through the northern reaches of Macomb County, condominium developers are slashing prices and offering incentives as they struggle to sell a glut of units languishing for sale even longer than single-family homes. Others are canceling projects that promised to bring fresh development geared toward young buyers into popular suburbs like Ferndale and Royal Oak.

The number of building permits issued for condos in Metro Detroit has plummeted from a 2004 peak of 6,377 to only 692 through October of this year, according to data compiled by the Southeast Michigan Council of Governments.

Caught in the middle of the condo slump is Anne Feighan, a 34-year-old strategic planner, who bought her two-bedroom, two-bath condominium at the SkyLofts Market Square building in Royal Oak for $310,000 in October 2005. Just two years later, it has lost $50,000 in value.

"I wish I would've rented," Feighan said. "It stinks. For me to try and sell right now would be insane. I know that no matter what happens, I'm going to lose money on it."

Condo sales in Metro Detroit are included with single-family house sales in monthly reports from Realcomp Inc. multiple listing service, so tracking the condo sales decline is difficult. But agents, developers and experts say the condo market has been especially hard hit in this housing slump, one of the worst in Michigan in decades.

"Condominiums tend to be much more volatile than any other part of the housing market," said Don Grimes, a senior economic research specialist at the University of Michigan.

"There's more turnover, and the projects tend to come together and fall apart much more quickly than traditional single-family developments."

Recent reports from the National Association of Realtors are pointing to another troubled year for the U.S. housing sector in 2008, with some uptick as the nation's credit crunch begins to ease. Locally, agents and analysts predict a similar situation.

But Grimes said a recovery in the residential condominium sector will follow that for single-family properties.

"Because of the volatility, the eventual gains could be more," he said. "But whatever recovery happens will be later."

Buyers offered incentives

Feighan in Royal Oak plans to wait the downturn out.

Engaged and house hunting, she's resigned herself to leasing her loft at a loss until the market picks back up.

"I'd rather bleed slowly than gush blood all at once," she said. "Every other weekend, there's fire sales on these condos. The builders are desperately trying to get rid of them, and I just can't compete."

For those developers in the condo game, their troubles can be seen in the signs touting incentives for buyers and the empty lots awaiting new construction.

On Hickory Glen Drive in one of Bloomfield Hills' earliest condominium developments, "For Sale" signs are as prevalent as the meticulously manicured lawns and shrubberies.

The going prices on some of the units have fallen below what previous owners sold them for back in the early 1990s.

Jane Figueiredo, who spent much of this year competing with more than 40 other sellers in the nearby Adams Woods subdivision to get rid of her property, upgraded the home, dropped her price and even offered the property for trade.

After nearly a year on the market, she finally got a break-even deal.

But she's sworn off any future Metro Detroit condo buying.

"It was hell," she said of the property's sale. "Never again."

Agents for Admiral Homes, one of Macomb County's largest builders of residential condos, are hoping slashed prices and $10,000-off coupons offered on its Web site will be enough to sell what's been sitting on the market for months in its developments in Chesterfield and Shelby townships.

Downriver, agents are pitching incentives such as six months free of mortgage payments to boost the appeal of townhouses sitting unsold for several years.

Developers shelve projects

Elsewhere, developers have shelved much-hyped projects.

Jason Lewiston, co-developer of the Woodward Ave. Lofts project, planned it for a site along Woodward in Ferndale south of Nine Mile.

But earlier this month, he pulled the plug after presales of the units, which would have cost from just under $200,000 to more than $700,000, went much slower than expected.

In Southfield, the mid-rise luxury 10 Ten project slated to go up on 10 Mile has been canceled as well.

Agents and condominium owners said that they hoped the pullback on new projects would help the condo supply fall more in line with demand.

Cheryl Standard, a 62-year-old Birmingham retiree, said she yanked her two-bedroom condo off the market this summer after people kept passing it up in favor of newer units. She's hoping to move to Florida to be closer to her two sisters, but said she'll have to wait to avoid a loss on her home.

"Who could blame them?" Standard said of the buyers she courted. "I couldn't compete with these developers giving away free cars and mortgage payments. But if there's less building, it'll give everyone time to adjust to a different market."

Standard was told by numerous agents that she would likely have to take a $30,000 or $40,000 hit on her unit to get it off her hands.

But because she bought it just a few years ago, that was more than she could handle.

"I've got friends who've had trouble selling their houses, and I can't help but think this is much more extreme," Standard said. "I feel like I've been locked into a bad situation that just keeps getting worse."

Grimes, the U-M economic researcher, said Standard's inclination is right.

"If you look at real estate losses across the country, condos have been right at the front of the trouble spots," he said. "You see it in a lot of overheated places like Florida, California and Nevada. But in Michigan there's been a continued predisposition toward single-family homes. So while demand for real estate is faltering in general, it's gotten worse in the condo sector."

Source

I have a sinking feeling the Stock Market is about to Crash.

Do you ever get one of those feelings that something catastrophic is about to happen? You have no concrete evidence, and you realize you could be completely incorrect, however you can't shake the feeling that something really bad is about to occur.

I think a perfect storm has been building; a clueless fed, a collapsing housing market, The big banks keeping losses off their books to fudge the numbers and ensure their Christmas bonus. The Countries GNP almost totally based on consumer spending, and worse yet, that spending is almost completely made possible by consumers racking up massive credit card debt. A currency that is rapidly becoming debased while jobs are being shipped over seas.

I just have that "gut feeling" that we are headed towards a meltdown of epic proportions and we are about to see a crash on the level of 87'.

Of course I could be wrong...but you know what they say,"Always trust your gut"

I took the Red Pill and my world will never be the same.

Please forgive me for coming across as paranoid or as some kind of a tin foil hat wearer who is convinced that everything around me is a conspiracy theory, I really do not consider myself to be one of those people.

However... After following Politics and the media coverage thereof for the past 2 months I cannot help but feel we are all clueless sheeple being fed the illusion of choice, democracy, and fair elections when the reality is we have no choice at all.

I have taken the red pill, I have woken up and seen the truth, I can never go back to the peaceful ignorance and bliss that I once knew. My world will never be the same.

I have realized that the presidential candidates are determined by the main stream media and by the people who run the biased and outdated political polls. There two outlets work in tandem to choose the two candidates well before a single vote has been cast.

The main stream media networks are in the entertainment business as well as the "news", so if a candidate has too big of a lead, and it gets boring, Obama starts gaining on Hillary or Romney starts gaining on Giuliani in the latest poll to spice things up, in the end though, the media has already told America that the presidential election will be Hillary vs Giuliani and they better learn to like it.

Evidence

• The debates give an uneven amount of "talk time" to the candidates bestowed with the title of front runners, before a single vote has been cast of course, by the media. This becomes a self fulfilling prophecy because the second tier candidates do not get an equal amount of time to share their positions with the American public and gain favor.

Do you believe its just a coincidence that the candidates who get more time to talk, receive a higher % in the polls? I don't.

• With the exception of the top 3 front runners of both parties, the other candidates are never mentioned and receive almost no coverage unless there is a major event.

I can't tell you how many times I watch the news to see constant coverage of Hillary and Obama, or Romney and Giuliani with no mention of anyone else. It is disturbing.

• Most people have never even heard of Ron Paul period, much less heard enough about him to make an educated decision to consider him for their vote.

It makes me extremely angry that a truly great man such as Ron Paul has not even been introduced to the American public yet. If it was not for me reading other housing and finance blogs on the Internet, I would never known who Ron Paul was either. I would be missing out on a great message and might never have noticed the growing phenomenon that was taking place all around me. The Internet, which remains unregulated, is the only place where "truth" is able to be discerned from the information that is carefully selected and spoon fed to us by the main stream media.

• The media is controlled by the one who has the purse strings. In the case of the major TV news outlets its the big corporations who give them ad revenue.

The bottom line is that what the American public believes to be true is influenced by the media. The media is controlled by the mighty dollar, and the dollar is controlled by the huge corporations that sponsor the news networks.

He who controls the money controls everything.

Hillary has received something like 80 million in campaign donations this year, unlike Paul who received his donations mostly in small sums from regular people, Hillary is indebted and owned by the corporations, lobbyist, and special interest groups that have funded her campaign. Is it any wonder that CNN covers her constantly when those same advertisers, corporations and pharmaceutical industries pay for airtime on their network. They want to see that their horse wins the race.

In short, I have seen the truth...


The truth is that you are a slave. Like everyone else, you were born into bondage, born inside a prison that you cannot smell, taste, or touch. A prison for your mind.

You take the blue pill and the story ends. You wake in your bed and believe whatever you want to believe. You take the red pill and you stay in Wonderland and I show you how deep the rabbit-hole goes.

Remember -- all I am offering is the truth, nothing more.

While you were eating Turkey, The Dollar was crashing to record Lows, Gold and Oil Soared to record Highs

That sucking sound you hear isn't the leftovers going down the garbage disposal, its the currency being debased.



The dollar index, which tracks the greenback against a basket of major currencies, hit an all-time low of 74.484, taking year-to-date losses to 11 percent. In real terms the dollar lost about 0.8% in one day.




Gold came close to $826 an ounce, making a run back toward a recent 28-year high.






U.S. crude oil for January delivery settled at a record $98.18 a barrel, up 89 cents, or almost 1 percent, after heating oil futures hit an intraday record on weekend forecasts of cold weather in the U.S. Northeast.


Source: Reuters


The question remains; Will Bernanke continue to cut interest rates in a futile attempt to stave off the inevitable recession? If another rate cut is in store, his actions will continue to destroy the dollar, and as a consequence, the standard of living of everyday Americans.

Happy Thanksgiving from Housing Fear

Enjoy the feast, however, it may be best to not talk about the housing market!

Starbucks a victim of the Housing Crash?

Now that everyones home equity is vanishing, Inflation is skyrocketing, and a significant amount of your disposable income is going to gasoline. Will you still be buying a $5.00 cup of coffee from Starbucks?

If you're my Fiance', the answer of course is YES!

However, I think its safe to assume that rational, sensible, regular Americans will be cutting back spending. (I hope she doesn't read my blog) ;)

Housing Fear champion Peter Schiff chimes in on this subject on Cavuto;

How does Inflation occur?

When interest rates are low banks have a tendency to over-lend and extend credit very easily, even to high risk borrowers, this increases the money supply in the economy which becomes inflationary. This has basically the same effect as if the Federal Reserve suddenly started printing and flooding the market with freshly minted 100 dollar bills.

The increase in the money supply reduces the purchasing power of the dollar because there are now more dollars chasing fewer goods and services, this causes a rise in prices of goods, thus you have inflation.

Too much money in the economy causes the dollar itself to lo value and it begins to grow more and more worthless. To restore the purchasing power of the dollar, and reduce inflation, the amount of money in the economy has to be reduced which means a recession.

People generally view a recession as a bad thing, but in fact it is healthy for the economy and America is in a desperate need of a recession. Unfortunately Bernanke keeps cutting rates to stave off the inevitable recession but instead his actions are causing rampant inflation and dollar destruction.

A boom is when the money supply increases and a recession is when the money supply decreases. The greater the monetary expansion, the more severe will be the required monetary contraction.

Boom and Bust is capitalism's summer and winter.... THE BIGGER THE BOOM, THE BIGGER THE BUST!!!!!!!!!!!!

Thanks to our federal reserve system we are subjected to a never ending merry-go-round of boom and bust cycles. A boom regardless of how big it is or how long it lasts will eventually disappear and the economy will go back to where it was prior to the boom.

It is healthy for the economy to have a house price collapse and undergo a recession. So why is Bernanke behaving in such a reckless and irresponsible manner?

We need to vote Ron Paul in 2008 to abolish the federal reserve and end the Boom-Bust Cycle, and economic bubbles for good.

The Ben Bernanke Song

This is a great tribute to the worst federal reserve chairman in history.

RON PAUL 300 Parody

Will you appeal your Property Tax assessment this year?

During the inflation of the bubble, local assessors were quick to inflate property taxes and corresponding revenue to pad the government coffers with money based off illusionary gains in real estate wealth.

Now that the party is over, something tells me that local counties won't be quite as quick or generous with the tax reductions, based on assessed value, during the bust as they were with raising them during the boom.

Millions of Americans will be receiving property tax bills in the next 2-3 months that will be grossly inflated and not reflecting the true equalized value of their house. There is a board of review held after the assessments are mailed where property owners can argue the taxable value.

I know that this winter I will be at my local review board, armed with a list of comparable sales, real estate listings, and other evidence that my house is now worth atleast 10% less than it was last year. I will be appealing the assessed value of my home. If I am successful, that of course means 10% less revenue for the county.

Will the township respond by raising mileage rates in an attempt to compensate for lost income due to crashing housing prices?

The housing bubble has far reaching ramifications, and this crisis will be felt by everyone come tax time.

Bears make money, Bulls make money, Pigs get Slaughtered

After reading the previous article I posted a second time, I realized I had overlooked this gem...

Kurt Freck didn't need to see the latest numbers to know that the housing market is getting worse.

He's had the Anaheim Hills home he bought in 2003 on the market for nearly a year and has lowered the price by $100,000 -- a 12% discount from his original asking price of $849,000.

"The good thing is that I paid less than that, but I have definitely lost equity," Freck said. He bought the house for less than $500,000 four years ago.

Freck's story is becoming more common as fewer people have been willing to buy a house at current prices.

Is this guy for real??? Please tell me this is a joke!

The guy paid $500,000 for his house in 2003, and in 2006 he lists it for $849,000 believing he deserves to make a $349,000 profit for residing in the house for 3 years. After no interest in the home for a year he decides to be a real trooper and cut the price by 100K and now only demands a mere $249,000 profit.

FRECK YOU!

If you think the market is bad now, wait until 2009 when your place is worth 450K and you really "LOSE" money. You had your chance to profit from the bubble and you blew it because you got greedy.

Remember Kurt, Greedy Pigs get Slaughtered in the end.

Southern California Home prices drop back to 2005 Levels.

Median Price in Southern California is now down 8% from October 2006.

Bernanke's scheme to save the real estate market by destroying the dollar isn't working out as well as he planned. Toxic loans with no lending standards are not coming back to save the day no matter how low the fed funds rate goes.

Exotic financing was the only way most people could afford to pay $600,000 for a "starter home" in California and without that necessary component to keep the Ponzi scheme alive house prices naturally have to continue to drop in order to reach affordability levels that compare with average income.

Check out the full article here.


I think the amusement parks should create a new roller coaster for 2008 and name it simply, "Housing Bubble". The rides frame will be built to match the housing price graph from 2001 to 2008. I bet it will be a lot more fun riding it down then simply watching your equity vanish on paper.

Ron Paul Speaks for me

I know many of you come to this blog for housing and economic news, and I am sure you all have vastly different political views. I really do apologize if I offend anyone talking about politics, however, I feel that the United States has lost its way, and the leaders in government and the central bank share a lot of the blame for the economic disaster that the country is facing. You simply cannot talk about the problem without acknowledging the cause of it.

The reason why I post so many Ron Paul video's like the one above is because it goes beyond politics. People are so passionate and so fired up about Ron Paul because he gives back hope to so many people who feel disenfranchised by the political system. People who have to choose the lesser or two evils on election day, or worse, get so disgusted they don't exercise their right to vote at all.

It is hard to watch some of these video's on youtube without getting emotional. This one is about the man who gives all those disillusioned people a voice.

Ron Paul speaks for me.

I found one good reason to like Real Estate Agents

Julia Abraham

Julia was born and raised in Ontario, and moved to Vancouver Island in 1999. She completed her Bachelor of Science degree at the University of Victoria and immediately pursued her Real Estate license at the University of British Columbia.

Real Estate has always been a part of Julia’s life as she comes from three generations of Top Producing RE/MAX agents in her family. From the moment you meet Julia you will be welcomed by her warm personality and throughout the real estate transaction you will be comforted by her level of expertise and knowledge of the business.

I guess I have to admit that not all Realtors are bad.

Imprisoned by my Condo

I am trapped in my home, and so are millions of other Americans.

I am not underwater by any means, however, I would not be able to sell without losing thousands of dollars of hard earned down payment. Factoring in taxes, Realtor commission, and the necessity of lowering the price thousands below the sales price I paid in order to compete with other comparable units. I would lose 10-15K in order to insure a good chance of a sale. (I know in bubble markets like California this is a laughable sum, but to me this is a lot of money)

I have a 30 year fixed loan, and the price I paid is actually LESS than comparable rent in the area. Nonetheless the psychology has turned, and people have so much fear of buying a house right now that there is simply no way I could sell without wiping out most of my 20% down payment equity.

I am getting married next summer, and I see an endless amount of great deals on much larger houses I could afford and would love to move into. That however is just a fantasy because I am trapped, I am a prisoner to my mortgage and a victim of the housing bubble collapse.

I can't move up and buy a bigger house, because my down payment, which exists in the form of equity in my current home, would be lost by selling the condo at market value.

I can't be comfortable in my 1 bed, 1 bath condo because it's really two small for 2 people and all of our stuff once we get married.

I am trapped, and that is what inspired me to create this blog.

That is my story. What is the reason you come to this website?

HR3915 Passes Congress!!! Mortgage Brokers days of taking advantage of Consumers comes to a long awaited End!

As the kids say now a days..... "Its ovah son, Its OH-VAH!"

Thanks to the wonderful piece of legislation known as The Mortgage Reform and Anti-Predatory Lending Act of 2007. Mortgage Brokers will no longer be able to:

• Make a profit at your expense with YSP or Yield Spread Premium, which is is the cash rebate paid to a mortgage broker based on selling an interest rate above the wholesale par rate that the borrower qualifies for.

Originators are prohibited from "steering." The proposed law states that an originator may not receive, directly or indirectly, any incentives (and in the most controversial provision, expressly includes yield spread premiums in that definition) that are based on or vary with the terms of the loan.

• Give no down, no document loans to illegal immigrants and flippers who think they "Deserve" a half million dollar house.

minimum standards for residential mortgages states that no creditor may make a residential mortgage loan unless he first makes a reasonable and good faith determination based on verified and documented information that, at the time the loan is consummated the consumer has a reasonable ability to repay the loan under its terms and to pay all applicable taxes, insurance, and assessments.

Good job Congress, It is nice to see the government actually pass meaningful legislation for once.

For a good laugh you can read mortgage brokers crying about this bill here.

This December 16th, On the Anniversary of the Boston Tea Party, The Second American Revolution begins

Creative Seller in Ft. Lauderdale is Dropping Price by $1,000 dollars a day until its Sold.

Check out this Craigs list ad.

now at $404 and dropping $1000 every single day!!!!

Beautiful 4 bedroom 2 and a half bath home with heated pool, wood floors. In gated, prestigous Sawgrass Preserve near bank atlantic center and sawgrass mills mall.

fully heated pool and jaccuzzi........ master suite downstairs... 2 walk in closets in master....house faces lake ......2 minutes to 595 and sawgrass expy......2100 square ft.... new 5 ton ac unit.....gas appliances..... 2 car garage.......neutral colors.....gated community..... very low maintenance(about $600 a year).....

Lower and lower it goes. the vultures are circling. Lots of calls and lookers waiting until it goes a little bit lower. Someone will get a steal, why not you. Don't wait too long.

This is what they call "Mark to Market" and you have to hand it to the guy for being creative. The price will eventually fall from his fantasy wish price of 404K to whatever its real market value (The price someone wants to pay) and the house will eventually sell.

I think we will be seeing a lot more of this in the future.

Great Ron Paul Interview; 11-08-07 on CNN Situation Room.

I love the british girls accent.

Breaking Housing Fear News: Germany now owns half of Cleveland.... Literally!

Yes, Every green dot on the map represents 1 REO property owned by Deutsche Bank.

How long will Deutsche Bank hold on to these houses before they start dumping them on the market at rock bottom prices lowering everyones home value?

The heat is on, Can you feel it?

Chinese Products Keep Poisoning our Children, and Destroying our manufacturing base.

American Corporate executive are truly genius. I can only imagine the board meetings...

1) "Lets ship all our factories over to China and produce our products for pennies on that dollar!"

2) "Sir... Won't that lower the quality of our product and cause Americans to lose their job?"

1) "We aren't in the business to employ Americans, we are in the business to make a profit!"

2) "But if we send all our manufacturing jobs over sea's, How will Americans afford our product"

1) With Credit cards moron!....By the way, YOU'RE FIRED!


Well the crap is hitting the fan now. Not only is consumer spending now almost completely funded by credit card and home equity mortgage debt because good manufacturing jobs have been replaced with low paying service jobs. China is adding injury to insult by poisoning our children.

http://www.cnn.com/2007/US/11/08/toy.recall/

RON PAUL 2008

Countrywide rewards Deadbeat Customers

When will people finally get it?

If you want to have capitalism, you have to let the free market play itself out no matter who gets burned for making bad investments, or how severe the repercussions are for poor risk assessment. You need to take your beating like a man and learn from your mistakes (i.e. Returning to lending standards where people actually have to a job in order to buy a house)

If you want socialism, that's fine, but no more multi-million dollar incomes, Wall Street, and free market economy. You can't have your cake and eat it too.

It is disgusting that policy's and bailouts are being implemented to protect company's and industry's from the consequences of their poor choices. This is what is referred to as "MORAL HAZARD".

A moral hazard is created when someone can take the most absurd of risks with their own or other peoples money knowing that if they succeed they will be rewarded beyond their wildest dreams, and if they fail, no worries, they will be bailed out at the tax payers expense.

Why are responsible people paying for the irresponsibility of others? It is simply sickening.

Lets take a look at some quotes from a recent CNN article highlighting Countryside's mind numbing new policy of rewarding dead beat subprime toxic loan holders at the expense of the responsible and truly deserving borrowers.

NEW YORK (CNNMoney.com) -- Not everyone is happy about mortgage lenders' latest efforts to help troubled borrowers.

Take Teresa Nelson. Instead of going for an adjustable rate mortgage with its lure of low initial rates, she opted for the security of a 30-year fixed at 7.10 percent for a house she bought in Pinellas Park, Fla. in December, 2005.

"I was well aware of what an ARM meant, and was staying far away from those snake-oil pipe-dream promises," Nelson said. "I also wasn't shopping for a short-term, big payoff investment - I was looking for my home, until I retire."

But many delinquent subprime borrowers who went for low teaser rates that shot up to unaffordable levels are now paying lower rates than Nelson as part of a new round of foreclosure prevention packages. And she doesn't like it.

For example, one subprime borrower had a riskier hybrid adjustable rate mortgage (ARM) with a rate of just under 7 percent that was going to reset in December to 10.5 percent. But last month, as part of a new bailout plan from Countrywide Financial, the lender gave him a rate reduction to 5 percent on his loan, saving him hundreds of dollars a month.

Nelson feels cheated and has little sympathy for people who she believes weren't as careful as she was. "Everybody was seeing dollar signs," she said, "and let their greed get the better of them. So, no. No bail-out, no assistance with my tax dollars. Not one red cent."

She's not alone. Last month, many CNNMoney.com readers expressed outrage to bailouts - whether they involved tax dollars or not - after Countrywide announced good deals for bad loans.

Countrywide said it will refinance or restructure loans or reduce interest for hybrid ARM borrowers whose rates are scheduled to reset. And no one will have to pony up prepayment penalties for retiring loans early.

Countrywide then announced it will rework loans, prime and subprime alike, for any troubled borrower, adjusting payments to reflect what individuals can afford. The company will administer the program with non-profit community advocate, the Neighborhood Assistance Corporation of America (NACA). Some troubled borrowers will escape with refinanced loans as low as 5.25 percent...

This is the quote that disturbs me the most

But his company is also restructuring loans for delinquent borrowers, who now will pay at the initial low "teaser rates" for an extra five years for huge savings. They could have seen their payments rise by 30 percent, 50 percent or more. That's great for them, but many responsible borrowers, like Nelson, feel like chumps.

Bailey said he understands their anger but said, "That's a situation where the greater sin is letting their homes go into foreclosure. You have a vacant home in the community and drive down the property values of neighbors."

WRONG! That is exactly what needs to happen!

House prices were driven up by greed, speculation and "Flip that House" wanna-be's watching TLC. The housing market will recover when house prices fall back to reasonable levels in line with income.

Let the market play itself out and stop trying to maintain ridiculous house prices by keeping gamblers in their house with fixed teaser rates and taxpayer bailouts.

Am I the only one who sees the problem here?

If you want to have capitalism you need to let people feel the sting for bad choices they make. Not pass those consequences on to those who were responsible while rewarding the dumb and reckless.

Are you angry yet? You should be!

RON PAUL RAISES OVER 4 MILLION DOLLARS ON NOVEMBER 5th!

Remember, remember the Fifth of November,

The Gunpowder Treason and Plot,

I know of no reason

Why Gunpowder Treason

Should ever be forgot.

As of midnight eastern time, Ron Paul has raised 7.1 million of the 12 million goal set for the campaign. The people have spoken with their wallets, and the criminal media can no longer ignore him. I have never wanted a candidate to win an election as badly as I want Ron Paul to win this one, I truly believe that he is America's last hope.

Lets restore the dollar, revive the middle class, build a 40 foot brick wall of reinforced concrete between Mexico and the USA, and get back to focusing on the heart of what America was founded on. The constitution.

Vote Ron Paul in 2008 and send him a donation if you believe in the message. Even if you are not in a great financial situation and feel like you can't afford it...

...You can't afford not to.

Mogul's advice to Realtors: Don't keep your day job

By Peter Y. Hong, Los Angeles Times Staff Writer
November 3, 2007

Even Realtors can lose faith in the housing market.

Speaking to a gathering of industry professionals Friday, longtime California real estate titan Fred C. Sands called the housing market "pathetic" and said some agents needed to start looking for other work.

"If you've been in it for five or six years and are barely making a living, you might want to think about what you were doing before and get back into it -- you can come back in a couple of years," Sands told members of the California Assn. of Realtors meeting in Universal City.

In the short term, the local real estate market "is not going to get better," Sands said.

He added that he could speak with candor because he was no longer in the home-selling business. Sands now leads Vintage Capital Group, an investment firm that focuses on commercial real estate development.

Such frank remarks are rare at gatherings of famously upbeat real estate agents, but Sands said those in the business needed to remember the last slump and realize "the last five or six years were not normal."

The soaring market of a few years ago will be followed by a correspondingly sharp decline, he said: "The longer the up cycle, the more excess there is, and the worse it is for what follows."
Few homeowners and real estate agents would find room to quibble with that. An estimated 12% of Californians will sell their homes at a loss this year, said Realtors association economist Leslie Appleton-Young, up from about 2% in 2006.

Slumping sales and prices have also brought hardship on many agents, many of whom were drawn into the profession during the housing boom that began in the late 1990s.

There are now 540,000 licensed real estate agents and brokers in California, up 50% from 2003, according to the state Department of Real Estate. But more than half of those agents haven't been involved in a transaction in the last 12 months, a Realtors association board member said.

Sands on Friday asked audience members who worked in the San Fernando Valley to raise their hands. "I feel your pain," he told them. He suggested that those who planned to stay in the business focus on affluent Valley areas or "move to the Westside."

Prices have remained stronger on the Westside and in other affluent areas, in part because buyers there are less likely to use loans with low teaser rates that are now adjusting higher.

But wealthy areas won't escape unscathed, Sand said.

"We saw 25-year-old guys buying $3-million houses," he said of the questionable mortgage practices of recent years. "Someone who makes $100,000 a year can't afford a $2-million house, but that's what's been going on," Sands said.

"The idea that everyone is supposed to own a home is baloney," he added.

Sands counseled agents that property prices must be cut drastically to "get in front of the crisis." Otherwise, agents will "follow it down like a dope" and get even less for the properties, if they can sell them at all, he said.

Speaking with Sands was Alan Long, president of the Southern California region of Sotheby's International Realty Inc., who also told agents to cut listing prices to speed sales. Rising foreclosures could cause prices to fall 20% below 2005 levels, he said.

Long counseled agents to drop sellers who aren't willing to lower prices.

"Let go of the fear another agent will take over and sell it -- they won't," he said. Long said agents could survive by working with buyers, emphasizing to them the advantages of purchasing from a position of strength.

Agents should "go with the flow" by using the downturn to prod buyers, he said. "We are salespeople. We have to be positive."

That remark prompted Sands to interject: "But if you go too far, you lose credibility. People need to know what's happening."



Wow, so many great quotes in this article I don't even know where to start. Its pretty ironic that the only Realtor who is actually honest about the housing market is one who "is no longer in the home selling business"

I really enjoyed the part where he strongly advocates that Realtors should consider finding other employment. He also bashes the belief made so popular during the bubble that every American is entitled to owning a house.

The lesson here to learn is simple economics 101 material: The bigger the boom, the bigger the bust! and never trust a Realtor on commission.

The Yucca Arizona Golf Ball House

Quite Possibly the coolest house I have ever seen.

The Yucca golf ball home. 1-04.
Hank and Ardell Schimmel owned RV parks, hotels and restaurants in Wyoming. They were traveling along Interstate 40 on a winter visit to the state when they happened on the abandoned sphere. Hank bought it in 1981 and presented it to Ardell for her birthday. She says, "He's always buying something goofy." This fit right in.

In 1991, the couple moved into the sphere. They divided it into three levels with 3,400 square feet of floor space. A kitchen and den are on the lowest level. The living room and dining room are on the middle level. The bedrooms round out the top level. Each floor has its own full bath, and access by an outside stairway: 42 steps to the first level, 20 more to the second level, and 18 more to the top.

Why is this house featured on housing fear?

The owner has numerous models of UFO's surrounding his yard, complete with model aliens ascending the ramp towards his house. There is also a sign posted that reads, " Any trespassers will be shot."

...Now that's scary.

David Lereah's book now on sale for $0.01

David Lereah was the former chief economist of the National Association of Realtors. During the housing bubble he wrote a book filled with all the classic realtor propaganda, "Houses prices only go up!", "They aren't making anymore land" and "Buy now! or be priced out forever."

Lereah has been so discredited, and his predictions have proven to be so wrong during the past years events that his book is literally not even worth the paper it is printed on. (kind of like where the US dollar is headed)

In an act of defiance and disgust, some Amazon users are actually selling the book, Are you Missing the Housing Boom, for a mere 1 cent.



Housing Fear thinks that even 1 cent is to much to pay for misinformation. You can always get that for free.

How does the Foreclosure process work in Michigan?

In Michigan there are two ways to foreclose: by lawsuit or by advertisement. The standard mortgage document used by lenders in Michigan contains a “Power of Sale” clause that allows foreclosure if there is a breach in the terms of the loan and this clause makes foreclosure by advertisement possible. This is easier than filing a lawsuit, so almost all foreclosures in Michigan are by advertisement and that’s what we’ll cover here. The basic process goes like this:

1. Homeowner is 90 days past due on their mortgage payments. Any time you’re late on your mortgage payment it’s technically a default, but generally a lender would not foreclose until you are at least 90 days late.
2. Notice of Foreclosure Sale is published. The notice must be published once a week for 4 weeks in a newspaper that circulates in the county where the property is located. The notice must also be conspicuously posted at the property and the lender has a right to enter the mortgaged premises for this purpose. The sale is typically 30 days after the notice is given to borrower.
3. Homeowner’s Rights at this Point. The borrower can cure the default and keep the existing financing prior to the sale if they pay all of the payments that are past due prior to the sale date. They could also sell the house and pay the loan off in full (or ask for a “Short Sale” – another topic for another discussion).
4. Sheriff’s Sale. The sale is handled by the circuit court and is called a sheriff’s sale. It’s an auction and the house is sold to the highest bidder. The lender will buy the property at this time unless an outside bidder offers more than what is owed on the house. This is unlikely and in most cases the bank owns the house.
5. Sheriff’s Deed is recorded. A deed is recorded transferring the title to the bank. The amount of the sale is typically the principal balance of the loan plus interest, late charges and legal and court costs.
6. Redemption Period. The rules can vary, but in most cases the redemption period is 6 months (this can be reduced by the court to as little as 30 days if the property is abandoned). During this time the homeowner may continue to occupy the home (no payments are made) and has a right to redeem the property by paying the full amount of the sheriff’s sale plus interest at the rate of the original mortgage. This could be done by getting a new mortgage (not likely in today’s mortgage world) or by selling the home for at least the amount needed to pay off the sheriff’s deed and interest due.

Thanks to Ken Mascia, of Oxford Financial, 248.644.1200. For sharing this information.

Michigan Housing market " Six to Nine months" to rock bottom

Good to see that the geniuses are already calling the bottom on the housing market.

Michigan's slumping housing market likely has "six to nine months" before it hits rock bottom, according to one prominent bank economist.

Carl Tannenbaum, Chief Economist with LaSalle Bank, suggested that Michigan isn't alone in suffering from harsh economic conditions that have led to a national housing correction. But he mentioned that Michigan is probably leading the way.

"The data would suggest that Michigan is fairing worse than the nation," he said. "The average house prices have fallen 4% nationally. In Michigan, that figure is 10% and it's likely to continue."

I wonder if their prediction has anything to do with the fact that the peak of the sub prime arm resetting is due to occur in six to nine months? You think maybe that is just a coincidence?...

Housing Fear is predicting that the real bottom is not going to occur until at least 2010, and anyone who trys to call the bottom at this point is a knife catcher and a moron. A key factor that the "experts" are leaving out is the second wave of Option-Arms that is looming on the horizon. Currently 80% of people with these loans are making only the minimum payment that does not even cover the interest. The principle owed on their loan balance is growing every month due to negative amortization, and almost all of them will lose their house once their mortgage resets.


The only thing that is truly safe to say about rock bottom...you'll know it when we get there.