A Little HELP From My.......Friends?

Well, it's about time!

I mean, when you're financially strapped and upside down on your home mortgage, there's absolutely nothing wrong with raising your heavy hand and asking for a little help.

Those California homedebtors microns away from going postal due to pending foreclosure and bankruptcy should be relieved to learn that H.E.L.P. will indeed be arriving!
Home Experts for Loan Preforeclosure, that is.

A stellar organization of H.E.L.P.ers will soon be opening offices all over the country in the coming months, including lovely, sunny, everyone-wants-to-live-here, 15%-home-value-growth-is-in-the-bag-for-2006-because-Gary-Watts-said-so-California.

What fantastic news for those strapped homedebtors! When you're in deep financial trouble, it's just great for someone to take the time out of their busy day to bend down, extend a hand and lift you out of the cesspool of real estate hopelessness.

I mean, just read what the article has to say about these unfortunate souls:

"There is a burgeoning of news items of home owners having to sell their properties as rising tide foreclosures of the collapsing subprime mortgage market. These generalities and statistics often obscure the real human tragedies that lie behind such stories. HELP works to make sure people can stop foreclosure, and raise funds against their properties to settle with pressing creditors."

Well, a great many of these human tragedies could have been avoided with a little financial literacy, a whole lot less stupidity, and greed by the dolts who signed the dotted line, ......but let's not get into that now.

This development is super-duper, and I don't want to sour the moment.

Gee, I wonder who these Experts are, and where they have been for the last 5 years prior to the train derailment that is the real estate industry as we are coming to know it?

You know, far be it from me to ask a dumb-ass question here, but could it be...I mean, is it just possible that these so called freaking "Experts" are the same kind of goofball "Experts" that got you into this f'ed-up financial suicide mess in the firstplace?

Unfortunately at this point in the game, it's not like the upsidedowners have a Disneyland-long line of ethical, real-estate professionals to turn to for help right now.

"No, I get by with a little help from my friends. I get high with a little help from my friends. Could it be anybody?......"

138% Percent Jump in Orange County Default Notices

And so the misery ensues.

Californians More Frequently Using F-Word

As in "foreclosure".

It's not looking good folks.

Tragedy in Blacksburg, Virginia

Prayers go out to the victims, their families and the entire Virginia Tech university and local community on this very dark, nightmarish day.

C.A.R. Goes On Offensive: $2.3 Million "We Get It" Ad Campaign for California REALTORS (R)

In an effort to convince the nation that yeah, real estate agents do add value to a home transaction, the California Association of Realtors will commence a new radio and internet advertising campaign costing approximately $2.3 million dollars entitled:

"California Realtors (R), We Get It."

The internet ads take you to a website called: www.yourpieceofcalifornia.com where it is explained ever so clearly the top reasons to use a REALTOR (R):

1. REALTORS® subscribe to a strict Code of Ethics—a set of obligations that often go above those mandated by law. Known as the REALTOR® Code of Ethics (bwahahahahahaaha), these principles embody a strong commitment to fairness, integrity, and moral conduct in business relations. Under the Code of Ethics, REALTORS® put the needs and well-being of their clients above anything else. (But not above that holy 6% commission check!!! Bahahahaha! Oh man, you C.A.R. guys are killing us! Good one!)
2. As members of C.A.R., California REALTORS® have access to confidential legal counsel, innovative marketing tools, and an extensive repository of market data. (Market data which you will not share with the consumers because its so C.A.R. IP-ish, right?) With these resources, REALTORS® are equipped to help you make important decisions throughout the home-buying or –selling process, such as how much home you can afford or what information you must disclose to the other party. (Wait a minute. REALTORS (R) have been convincing thousands of homebuyers to sign up to non-standard mortgages in order to buy more home than they could really afford. Are you sure what you are claiming here is true?)
3. Among the top skills REALTORS®’ bring to the table is the ability to negotiate a favorable price. REALTORS® are knowledgeable about the small repairs and improvements you can make to enhance the “salability” of your home. According to the NATIONAL ASSOCIATION OF REALTORS®, the median price of a home sold using an agent is 16 percent higher than a home sold without the guidance of an agent. (Hmmm, so why utilize a REALTOR (R) real estate agent if I am buying a home? You forgot to address the other side of the transaction that affects your duplicitous profession. As a buyer I don't want to pay 16% more for a house plus 6% commission. That's 22% of b.s. money down the drain. You know what would be impressive? Convince me that by working with a realtor one can negotate price decreases of at least 17% every time to cancel out the efforts of the seller's realtor! Sorry, but this item 3 is crap in terms of explaining REALTOR value to the buyer.)
4. Your REALTOR® acts as your advocate during each step of the transaction. Whether evaluating buyer proposals or preparing counteroffers, your REALTOR® saves you time by serving as a liaison between you and the other parties of the transaction, prepares and reviews necessary paperwork, and guides you through the process to make sure everything is handled appropriately. (Such as encouraging you to not make insulting, low-ball offers for overvalued homes, and hand carrying you as a prospective buyer to "recommended" mortgage brokers and appraisers that will knock down the pins and help close the sale - all in an effort to secure that holy 6% commissions)
5. REALTORS® are well-versed in up-to-date market data, such as inventory levels, time on market, and ratios of list-to-sold prices. Backed by education and experience in the real estate industry, your REALTOR® and can help you leverage this market information to aid in your decision-making process. (Here's a news flash for REALTORS(R): All of this information is now available on the internet at Zillow, RealtyTrac, Foreclosure.com, etc., - and anyone with a brain and a pulse can decipher the amount of leverage available to them on a given. But even if one chose to hire a realtor anyway, how do any of the above items consistute a value-add worthy of 6% commission based on the home sale value? The rancid truth is, none of them do.)

These ads will run through October 2007.

Nice move, C.A.R. Tip of the hat to you.

I mean, it is wise to go on the offensive at this stage, since Americans who are, or will be, losing their homes are about to start calling out so-called professional mortgage brokers and real estate agents by name in the press. Yes, those who cajoled them into signing the dotted line of subprime and Alt-A mortgages back in 2003, 2004 and 2005 will likely start to receive that free word-of-mouth advertising on national TV! Sheer bliss for any a real estate professional!

But how will those that are undergoing home foreclosure, bankruptcy and homelessness view these new ads?

The answer? Well, it doesn't matter to real estate agents. You see, they have their money. They've been paid already - and can move on to the next sucker.

The idea that agents must act ethically in all transactions, or lose their professional reputation and potential future customer base, is a myth. If the Housing Bubble of 2006/2007 has taught us anything is that there is almost always a greater fool, until it's too late. So the "we're always ethical" line is just bullsh*t.

Real estate agents are sales people who do not care whether a home sells at price x or price y, as long as either price x or y is a high price, because their sales commission is a factor off of the final sales price.

But it is good for the C.A.R. to respond with something to counter the growing national disgust for real estate industry professionals as the U.S. housing market, the participative businesses within it, and it's customers proceed to financially unravel during the course of 2007 and 2008.

As far as the ads go, though - Great Stuff!

We're all waiting with bated breath I can tell you!

Landlord informs MarkusArelius of Rancid Truth: "No Rent Increase" in '07!

YES!

And there was much rejoicing!

Yes, some sweetness to life can be found, even during a colossal Orange County California real estate industry meltdown!

CANNONBALL!!!!

Mortgage Philanthropists!? Come out, Come out, wherever you are?

So exactly how much will it cost to rescue those financially illiterate cretins who were so-called "bamboozled" and "hoodwinked" into sub-prime mortgage loans by mortgage brokers and realtwhores in order to purchase homes that they could otherwise never afford?

How about $US 120 Billion?

Thank goodness all of our nation's schools are leading the globe with world-class education!

Thank goodness all of our nation's roads have been completed - and let me say, smooth as a baby's bottom!

Thank goodess that Ben Bernanke has brought inflation under control!

And thank goodness that our nation's borders are secure, and that the war on that noun called "terrorism" has been won, because man, I was starting to get worried about the price of gas, which is now at a record $3.36 per gallon in Lake Forest, CA!

Thank goodness for all of that, because now we can drop everything we have been doing in our busy lives in order to experience the pleasure of raising taxes on those who saved their money and went without, in order to bail out nimrods who decided not to read nor fully understand a mortgage contract before they signed it, and who could not bring their consumer greed, arrogance and financial incompetence under control!

I guess, with Mr. Shumer's advocacy, every homedebtor in the country can just declare mental ineptitude and stop paying their mortgage!

I swear, if any such bailout plan passes Congress and is signed by moron Bush, then America has officially lost its way completely.

Golden State Ranked No. 1 in March Foreclosures

We're No. 1! We're No. 1!

...uhh, Hey, wait a minute guys, uhh...what are we celebrating again??

California March Foreclosures: 32,692

- OR-

1 filing for every 373 homes, out of 158,000 foreclosure filings nationwide

California lenders, mortgage brokers, and real estate agents: Damn, you guys rock!

And you got paid!

Way to go!

The Rancid Truth: 1 in 54 Californians Is A Licensed Realtor

How appropriate for Friday the 13th. See the recent article from The Desert Sun newspaper out of Palm Springs, CA:

"...despite a generally sluggish housing market in recent months, California continues to add 200 to 300 new real estate licensees every week, with some 560,000 licensees expected statewide by year’s end.

“At least it’s not 1,000 a week like it was a year ago,” said California Real Estate Commissioner Jeff Davi, who oversees a $43 million budget and 342 employees in five offices who currently regulate about 535,000 licensees across the state...

...Along with the boom in licensees has come a surge in enforcement action for those who break the rules, Davi said. The department is on pace for 9,000-plus enforcement cases this year.... Based on cases filed during the first half of its fiscal year, about 36 percent will involve criminal convictions, 21 percent will involve trust-fund handling or recordkeeping violations, and 10 percent will involve supervision and negligence violations."

Realtor Transaction Survival Kit

Some great tools from the CAR, the California Association of Realtors.

Realtors, in case of emergency, break glass!

Transaction Survival Kit (Silver) Member Price: $44.00 A Basic Necessity for Every New Agent Keep these handy reference publications close to you at all times! Kit includes: Minimizing Legal Problems While Completing a Successful Real Estate Transaction The Relationship Between You and the Buyer in a Residential Real Estate Transaction The Residential Real Estate Transaction Guide Cutting Through the Confusion on Disclosures First Aid For Hot Market Burns Your Guide to the California Residential Purchase Agreement So You've Been Sued...Now What? Sold separately, the items cost over $92.00. As a kit, you save over $45.00. Sold as: 1 Package

Qty :

Got Groceries?

Professor Cathy Lesser Mansfield of Drake University Law School reported to NPR news that the housing market slowdown and the rise in home foreclosures are starting to impact the ability of families to pay for other basic needs. Groceries. Clothing. Gasoline. Health care.

America's Largest Homebuilder: "It's official. 2007 is sucking"

You got to hand it to D.R. Horton's CEO Don Tomnitz. Almost exactly 30 days ago he so eloquently predicted the probable business results of 2007 for America's largest of homebuilders.

Mr. Tomnitz was one of the few business leaders within the real estate industrial complex (REIC) with the cajones to just tell it like it is: 2007 "IS GOING TO SUCK" for America's homebuilders.

Funny quote at the time. But is anybody laughing anymore? I mean, Don was right on.

D.R. Horton's second quarter results ending March 31 have been talleyed. And they sure do SUCK!

D.R. Horton's year on year orders are down 37%.

Net sales orders fell to 9,983 homes from 15,771 a year earlier.

Perhaps worst of all - and very telling in terms of new pressure on home sale prices and the cost of incentives- the dollar value of home orders sank 41 percent to $2.6 billion from $4.4 billion.

Holy crap! For America's largest homebuilder, this is one major sucker punch below the belt! And if this is what's happening to the big boy on the block in terms of building homes and flogging them to the nation, how will the smaller home builders cope?

And the most painful kick in the groin? The state of California - where orders fell 59 percent to 1,107 homes. California was also the market that saw the biggest dip in dollar value of orders, down about 57 percent to $533.5 million.

Unbe-freaking-lievable!

I don' t know.

Maybe it's the quadratic pastel tie that says "I don't give a damn what you think!".

A tip of the hat to you, Mr. Tomnitz. Good call.

Blacks, Latinos Deserve Forgiveness for Signing Sub-Prime Loans

Mr. Wade Henderson, President of the Leadership Council On Civil Rights and Ms. Janet Murguia of the National Council of La Razza want loan forgiveness and special conditions for blacks and latinos in America who signed sub-prime loan agreements of their own free will.

Apparently, these loans were designed by greedy lenders and pumped by unscrupulous real estate agents to dupe, hoodwink and otherwise fool black and latino Americans into buying more home than they could really afford, thus causing the mass of foreclosures in American communities.

So, if you are an American taxpayer this means that we are all supposed to pony up the federal extortion bar and compensate ethnic minorities for being financial imbeciles!

This is almost too ludicrous for words.First of all, it might surprise black and latino Americans, who's eyes were too big for their financial stomachs when they went into debt to acquire those homes, to know that they find themselves in good company. Thousands of white Americans also signed on the sub-prime dotted line too. So where's the love for your equally stupid white American brother?

This compensation movement really insults the intelligence of every single ethic minority in this country.

It also suggests that it's ok to be a moron.

I'd much more prefer that We, the People, i.e. All Americans, take full responsibility for our actions for a change - even for the titanically stupid mistakes that cause us to lose our homes, sell our possessions and declare personal bankruptcy.

The answer is simple, Mr. Henderson and Ms. Murguia:

No, the Gub'ment ain't bailing you out, because Gub'ment is you!

You signed the mortgage. You took responsibility. There are no do overs. You break it. You bought it.

The sooner we stop acting like overgrown children, the better.

Now back to our regularly scheduled program of Americans who know how to live within their financial means.

American Realtors: "It wasn't me."

CNN Money reports that the blame game has started.

Check out blame target No. 6 for the 2006-2007 real estate market meltdown.

OC "Cultural Pathology" By IrvineRenter

People, if you live in Orange County, California, then this article by IrvineRenter is a must-read.

Like a house of cards. Just like a house of cards.

American Realtors: "Housing Market Has Bottomed Out"

The National Association of Realtors demonstrates again why it is America's trusted news source for national housing market trends. Thank God this week's story matches up with the NAR's pocket-lining strategic objectives.

Short Sales: A Good Way For The Market To Correct Itself

The Orange County housing market is broken.

It has been for several years.

Now, some OC homeowners (actually "homedebtors") facing foreclosure might be able to negotiate a settlement with their mortgage lender called a short sale.

When this happens, a new buyer assumes the property, and the mortgage lender forgives the leftover balance of the original mortgage.

But short sales often result in smaller price discounts than home auctions do.

Fewer homes going to auction could help keep prices steady in an uncertain housing market.

A slowing housing market could indicate that hundreds of thousands of borrowers being stuck in loans they can't pay or refinance.

OC Homedebtors To Make Tough Choices

Homedebtors in Orange County impacted by upcoming rate adjustments on their mortgage loans may be facing foreclosure in 2007. Many homedebtors will be biting their nails down to the nubs deciding whether to sell their homes at a loss rather than declare bankruptcy and carry on in life with an impossible credit rating and no money to purchase another home.

The following OC Register article describes several ugly scenarios and possible survival tactics for upside down homedebtors.

Will there finally be enough market pressure accumulated from these motivated sellers, combined with rising inventories, and declining home values to reduce for median home prices in Orange County?

Probably not.

Unemployment figures in Orange County remain very low at 4.8%.

Yet, today average single family home prices in Lake Forest, CA hover around the $625,000 mark (3 bed, 2.5 bath). Median income in Lake Forest is slightly more than 10% of this median home value at $76,000 per annum.

A Blown Mortgage - And The Deadly Shrapnel

The Blown Mortgage Blog posted an interesting article today about an interesting, if not disturbing, knock off effect on smaller, licensed mortgage brokers who otherwise plan to sell their closed mortgages to investors. But the foundational sands appear to have shifted with these investors, many of whom have decided to tightened their loan purchasing guidelines as a result of the recent fall of New Century Financial and a higher aversion to loan default risk.

So what is the potential knock off effect? Thousands of dollars in losses on loan sales for small mortgage lenders.

Too Little Too Late, Barney

OC police are arresting more and more illegal immigrants each month of 2007.

Those without ID are being investigated for immigration violations and deported when warranted.

While these kinds of arrest results might be encouraging to some OC residents, it is just as too little as it is too late. The time for crack down on illegal immigration was 5 years ago and even then, it should never have started with arrests in California.

It should have started first with tightly securing the border with Mexico (i.e. 20 foot fence along the border, surveillance equipment, enforcement personnel and equipment).

This article states that 591 individuals were detained under suspicion of immigration violations in February. During that same month, well over 5,000 illegal Mexican immigrants crossed the California and Arizona borders.

Whether you support a tougher line or softer line on illegal immigration, it doesn't matter. One must concede the truth - that these arrests do not constitute an effective use of precious OC county law enforcement resources when U.S. borders remain essentially wide open the most common illegal immigrant - the Mexican migrant worker.

Here's an novel idea: Patch the hole in the hull first. Then commence bailing out the water.

The Achilles' heel of the United States of America is not a lack of resolve to correct what is wrong and make it right, but a failure to utilize critical thinking skills and common sense.

Whew! At least California is safe!

Thank God for the UCLA Anderson Forecast!

The sluggish real estate market is definitely dragging down the California economy, but strong job growth in the state at a whopping 1.9% year-to-date is keeping the California economic boat afloat - and preventing a recession.

New Century Financial Corporation: Officially Toast

New Century Financial Corporation of Irvine, California has declared Chapter 11 bankruptcy, agreed to sell off most of its assets and decided to lay off some 3,200 employees.

No surprises here.

For anyone who in the future wishes to question the reasons why their 2008, 2009 and 2010 federal income taxes increased substantially, bookmark this story now.

Your future tax dollars will not doubt be utilized by that all powerful, massive building with arms and legs that walks around and "does shit" called the Federal Government.

Your money will be used to bail out the reckless and greed-ridden actions of these NCF dolts who handed out high-risk mortgage loans to financially illiterate American families across the country like it were candy at a Labor Day parade.

Aren't you were glad you lived within your budget? Aren't you pleased how you lived within your means?

Do you not yet realize that you will be effectively paying off your neighbor's Ford Mustang Saleen that he bought for his wife with that HELOC!

Now, on to happy thoughts!

Take me to a safe place where there are happy thoughts, happy thoughts, happy.......

SoCal Realtors: How to Avoid A Legal Ass-Kicking

In times like these, few would question the wisdom of obtaining sound legal advice.

This is especially true when your profession of choice is known nationally for it's general lack of a moral compass, alongside that of used car salesmen, subprime mortgage lenders and personal injury attorneys.

So let's just take for example the profession of real estate agent.

The California Association of Realtors is now taking steps to better educate its association members of the important do's and don'ts when facing today's volatile real estate market, such as the tips highlighted within this helpful video prepared by the C.A.R. and its legal defense team.

Isn't it refreshing to know that American home realtors everywhere will now start to take copious notes of conversations with buyers, make full verbal disclosures, steer buyers to 3 or more competitive mortgage lenders for quotes, and avoid predatory lending outfits altogether?

That's just Super-Duper and Fan-damn-tastic!

Lessons Learned: How Did It Come to This?

National Public Radio's Marketplace points out some lessons to be learned from the mortgage-default wave.

And We'll Have Fun, Fun, Fun Till Daddy Refi's the ARM Away!

If everybody had an ARM loan,

Across the USA!

The teaser rates would be adjustin,

just like Californ-I-A!

Try not strangle your realtor,

"Home values never go down"!

Everybody's foreclosin'

Defaultin' USA!

Between 2004 and 2006 over $2.2 trillion in adjustable loans were issued to homebuyers.

A tidal wave of foreclosures is on the way.

1.1 Million Americans to lose their homes.

Total potential loss of over US$112 billion.

Oh yes, America! Plenty of "tasty waves" for everyone!

Chapter 11 Declared Today for Irvine, CA Mortgage Lender

Another one bites the dust in a big way.

This time it's People's Choice Home Loan, Inc. declaring bankruptcy right in the backyard of Orange County's prolific real estate market!

What next?

Kind of creepy.

New Most Hated Profession in U.S.? Mortgage Lenders Say To Used Car Sales People, Attorneys and Real Estate Agents: "Step Aside!"

It's refreshing when members of a certain profession really step up and call a spade a spade.

In the United States of America, a head of real estate agents, used car salesman and ambulance-chasing attorneys, mortgage lenders are now attempting to blaze their own path to the top of the list of the most hated and distrusted professionals in the country, if not the world.

But why? What on earth could cause mortgage consumers to become so unhinged?

Well, don't take it from the Rancid Truth Blog. Read on from the Reuters' article today that included comments from Ms. Jillayne Schlicke, an eloquent mortgage industry veteran, and head of an organization called The Ethical Lending Foundation.

Interestingly, if you happen to visit the Ethical Lending Foundation's website, you'll notice that one of the first little things you can click on is called a "Code of Ethics".

Ms. Schlicke has tried in vain to train and instruct mortgage lenders, real estate agents and even real estate consumers of the importance of following ethical conduct.

Some damning quotes from Ms. Schlicke in the article about the current state of affairs within the mortgage lending industry:

"We're in ethical chaos in mortgage lending,"

"It's going to be a long road to climb out of that gutter."

When will they recover?

Rewind to 2002 Fireside Chat: Why Do Homebuyers Distrust Realtors?

I found the following interesting article published October 30, 2002 in the Realty Times, written by Blanche Evans. It provides a series of reasons why 5 years ago, in 2002, homebuyers might have held a certain level of distrust for realtors.

Here are some of the key reasons identified by Ms. Evans:

1. Generation Gap - That GenX and GenY prejudices pose a serious challenge to realtors hoping to make that sales connection.
2. Service Gap - That it's important to first time homebuyers to know and understand how much home they can really afford, and that other home buyers just want the realtor to find them the house they want and provide strong, favorable price negotiation expertise.
3. Cultral Gap - Too many white agents. Not enough ethnic diversity in realtor ranks.
4. Electronic Gap - That realtors in 2002 don't yet fully understand the significance of the internet and of e-mail communication as powerful tools to tranform their sales activities and success.

All good points brought forward by Ms. Evans.

But I am one who values self-inspection, perhaps some self-criticism. You know, taking a real inventory of one's strengths, weaknesses and character flaws.

It's now 2007. We are in the midst of a national housing downturn. Many who bought homes in 2002 and after may be in serious jeopardy of losing their homes due to reason 2.

So how would we today answer the same question?

Do homebuyers trust realtors more than they did 5 years ago?

Impac Mortgage of Irvine: $1.4 billion in Problematic Loans

Well, here's another surprise.

By "problematic" we mean in serious risk of default. Now 6.2% of Impac Mortgage borrowers have missed mortgage payments of 2 months or more. This is up 3.1% over last year.

Another textbook example of mortgage lender trying to shovel its way out of a financial nightmare created by lackluster self-regulation, corporate greed, and ultimate reliance on the American taxpayer to eventually foot the bill of homedebtor defaults.

Ah, the American Dream! Just like common sense. You never really come to appreciate it until it's gone.

Can't afford home. Can't afford car either.

This Detroit Free Press report earns the "No-Shit-Sherlock Award" this week as they attempt to link dips in car sales to sunny weather states.

You know, I'm not entirely up to speed about the housing market and economic situation in Michigan. What I have heard is that the situation isn't pretty. But here's a nugget of useful information for our Wolverine-state friends at the Freep:

Dips in sales of Detroit cars has little, if anything, to do with sunny weather.
A little self-criticism is always a good place to start, and might clear the air a little.
Consider some of the following factors on for size:

1. Detroit's automakers have been officially "jumped" by both Toyota and Honda in terms of car sales in America. It is highly doubtful, given past performance, that American automakers are in any position to recover market leadership in the short or long-run. Good for American car sales? Not really.
   
2. Honda, Toyota, Volkswagen and BMW have shown the greatest technology innovation, highest customer satisfaction and highest overall quality ratings of industry auto manufacturers. GM and Ford are essentially MIA in all three departments. Good for American car sales? Gee, lemme thin..No.
   
3. Southern Californians, Nevadans, Arizonans and Floridians have something a little more important to worry about these days than buying a Hummer that get's them 10 miles to the $2.80 gallon of gas. Yeah, I can understand how this might be quite a shock to some. You see, the item that all four of these markets share in common, besides sunny weather, is a housing market slowdown, the economic consequences of which may become very serious indeed. The financial well-being of many individuals and families in California alone may be adversely affected. Suddenly, buying a car - new or used - will become less and less of a priority as 2007 wears on. Now, is this good news for car sales - domestic or foreign? Probably not.
   

4th Largest Home Builder: "Recovery Unlikely in 2007"

CFO Roger Cregg of Pulte Homes, Inc., the fourth largest homebuilder in the United States of America, reports to Bloomberg that "we're not projecting anything to bounce off the bottom at this point."

But, wait just a damn minute...

On March 13th didn't NAR head David Lereah just state that a "housing market recovery" was in store in 2007?? (see March 13th post).

Oh.

OK, now I get it!

This is the part in the film where mainstream American media bashes the real estate industrial complex, and internet housing bloggers utilize these reports to justify their caustic attacks on the innocent, just-doing-our-job home realtors and mortgage lenders of America.

Tip of the hat to Mr. Cregg and Pulte Homes, Inc. for telling the story like it is - the Pulte way: "The way it should be".

Housing Crash Biting U.S. Worker Mobility

The ability of American workers to move freely from one market to another for gainful employment is just one of many important variables within a complex equation that contributes to economic stability, growth and national competitiveness. The easy, fluid movement of workers actually sets the U.S. apart from many other world economies.

This story from USA Today exposes how the housing market crash of 2006-2007 may adversely affect this critical variable to economic success, and lead to greater challenges for employers to grow their businesses, and for the U.S. economy in general, to avoid economic stagnation.

American workers considering relocation due to new employment opportunity must weigh more carefully than ever before the real financial impact of both selling their current home and buying anew.

National Association of Realtors: Recovery on Deck for 2007

Look, you bubble-bloggers and bitter renters have got to calm the hell down.

David Lereah says:

"Underlying trends point to a housing recovery in 2007,..."

"Lending problems in our nation's subprime marketplace are building, which could inhibit

future housing activity and further dampen our forecast. Even so, there problems are likely to be contained and not spill over into the prime mortgage market."

You see?!

It's all cool, baby! No problems. Now we got the NAR in the house!

You wanna see something REALLY scary? - Peter Schiff

The end of the US economic dominance is coming.

Signs, Signs, Everywhere Are Signs

"Signs, signs, everywhere there's signs

Fuckin' up the scenery, breakin' my mind

Do this, don't do that,

Can't you read the sign?"

-Tesla

Oh Fuuuuuuuuuudge!....(Only I didn't say fudge...)

The subprime nightmare unfolds continued (and explained)....

Somebody's got to be to blame, right? RIGHT?!

America's Largest Homebuilder: "2007 Is Going To Suck"

During times of trial one must often pause in order to appreciate the profound eloquence of American finest business leaders such as Mr. Donald J. Tomnitz, CEO of D.R. Horton, the largest home builder by volume in the United States.

Subprime Meltdown: Worse This Time Around

The last time the subprime lenders were knocked down in Orange County California was 1997-1998. The market shakeout lasted a couple of weeks.

This time the outcome could be very different. The market circumstances are different. The players are different.

Some analyst predict that, in the end, the potential for future "fire sales" for foreclosed homes could put substantial pressure on OC home prices.

Mark Mueller's report from the OC Business Journal here.

Don't Make The Realtor Mad

Exotic home loans.

Who needs them?

Why can't we go back to the old fashioned way of doing things?

You know, the way of actually "doing your homework" instead of going through the bureaucratic motions?

To some, exotic loans (ARMs, interest only's) have a market and a purpose for certain homebuyer types.

To others, exotic loans are toxic waste, that should be abolished altogether from the real estate industrial complex.

Whatever the outcome, let's just ensure we do the right thing and not make home realtors angry.

Afterall, nothing can or should stand in the way of that 6% carrot at the end of the homesale rainbow.

What?

Dead bodies?

No problem. Step aside!

It's Official: U.S. Housing Market Now "A World of Shit"

Anyone, and I mean, anyone who would now describe the U.S. housing market as beaming rays of sunshine is a delusional idiot.

This USA article really hits home what is, and what will be destroying the financial well-being of millions of everyday, middle-class homedebtor Americans in the coming 2 to 3 years.

The financial ineptness and illiteracy of the American homedebtor.

The rampant, anything-goes, sales strategy and tactics of American mortgage lenders.

The insidious actions of American home realtors, most completely lacking business ethics and experience, greasing the palms of mortgage lenders and home assessors, and using duplicitous promotional tactics with homesellers and homebuyers alike to earn that 6% - at all costs.

It's all being exposed before our very eyes.

There will be Congressional hearings.

It's only a matter of time.

All of these horror stories will be told.

FBI on U.S. Mortgage Fraud: "OK, We're Done Fucking Around"

The FBI is issuing harsh warnings to both mortgage lenders, realtors, property assessors AND potential homedebtors to "stop fucking lying".

After the FBI's report was released last Wednesday describing mortgage fraud in the United States as "pervasive", the FBI's notice informs consumers and lenders that mortgage fraud is punishable by up to 30 years in prison, a $1 million fine, or both.

Are any realtors out there paying attention? What good is that undeserved 6% commission you earned on a 6 figure Orange County home sale, and that huge-ass Hummer parked in your driveway, if you're own ass is parked in prison?

The FBI reported that it investigated 818 mortgage fraud cases in fiscal year 2006 (up from 436 in fiscal 2003), resulting in 263 indictments, 204 convictions, and recoveries of $630 million in restitution and fines. Currently pending cases total 1,014. The FBI estimates that 80% of all reported fraud losses involve collaboration or collusion by industry insiders.

"The increased reliance by both financial institutions and nonfinancial institution lenders on third-party brokers has created opportunities for organized fraud groups, particularly where mortgage industry professionals are involved," the FBI's annual financial crime report says. (source: National Mortgage News).

No shit, Sherlocks.

New Century Mortgage: Is This The Last Straw?

No, this isn't George Hamilton.

It's Mr. Angelo Mozilo, CEO of New Century Mortgage, one of America's largest subprime home mortgage lenders, having posted almost $60 billion of loans in 2006.

New Century is in trouble.

Big trouble.

Famous for providing special mortgage loans to individuals with shitty credit, it's now approaching crunch time for New Century. Time to pay the piper. Unfortunately, more and more of these higher-risk mortage loans are going into default, which means New Century cannot pay it's own creditors back.

The hole in the boat has been patched, according to New Century. They've finally decided to stop writing up any more shitty loans. Also, general lending standards are being tightened up. But it's probably too late to save the company from bankruptcy proceedings.

Mortgage companies overall are getting their asses kicked in the markets.

Twenty mortgage businesses have already been shut down from making further loans, or have gone bankrupt altogether.

Spotlight Lake Forest: Big Problems at 22931 Hazelwood

The owner of a 4 bedroom, 3 bath, 2136 sq. foot home at 22931 Hazelwood in Lake Forest is in pre-foreclosure.

The home's sales history includes:

February 3, 2005 $ 607,000

July 21, 2005 $ 775,000

One and a half year later, the owner defaulted on a $620,000 loan, having already put $155,000 down initially, but failing to keep up with home payments. Ultimately, the owner's overdue payments piled up to $23,300, forcing the funniest of mortgage lenders, Washington Mutual, to foreclose.

Now the house is again up for sale.

The loan default and the foreclosure are sad occurences for the owner and family and represent one problem.

The second problem is the new sale price.

The realtor is creatively positioning the home at around $750,000 "as is", despite the fact that most comparable homes next to this one are now hovering precariously around or below the $650,000 mark. The annual trend for this area of Lake Forest is definitely going south. The realtor may himself be mesmerized by the Zillow Zestimate for this home at $794, 238 as justification for his so called "aggressive, $50K markdown".

The home itself is pretty and good-sized, but it will need considerable repair work inside and out, since a large family with children was living in it.

Now listen.

Lake Forest is a great place to live. No question. Probably among the best communities in Orange County and the entire state of California. It lies at the feet of the gorgeous Saddleback mountain range. The neighborhood is beautiful with nearby parks and walking trails. Crime is low. Streets are clean and meticulously maintained. Plus, Saddleback district schools are among the state's best.

But let's set that aside for one moment and consider the following:

1. The Orange Country home market is entering a dire state. Even realtors acknowledge this fact. Home values remain clearly overstated following 3 to 5 years of unjustified price pumping by the local real estate and mortgage industry leaders, and through high sales of unsecuritized, high-risk mortgage loans, which made buying such expensive homes easier for those who, under better loan regulation, would likely not be given the time of day by a Washington Mutual.


2. The median income for a Lake Forest family is $75,000. I repeat. That is the median income. If one earns this amount or less than this, I'm sorry to say, but you have absolutely no business trying to "purchase" a home here.


3. Assuming zero down, the new 22931 Hazelwood home sales price would demand a typical family in Lake Forest to purchase a mortgage loan of 10 times the median income, most likely 2 deeds of trust and formed as either an option ARM or interest only mortgage loan. This is textbook financial suicide for any family when the housing market is already considered dangerously unstable.
   

Whether or not 22931 Hazelwood is worth every penny of $750,000, I will let other debate.

Lake Forest area home values are on a slow, gradual decline. One home, also on Hazelwood has already has lost $25,000 in estimated value since January 1, 2007.

And for sale signs are NOT coming down.

The for sale sign is still up at 22931 Hazelwood. There may be bites, but if prospects continue to show patience and fear for area declining home values, then the realtors/lenders sale price must be brought down.

As for the owner, he or she just wanted to own a home and likely did not realize the massive amount of money needed on a monthly basis to keep head above water.

He or she likely was caught up in the 2005 euphoria of pseudo-homeownership in Orange County pumped up by area realtors with the slam-dunk sales pitch that "OC real estate value never go down". Who knows what qualification process used by Washington Mutual entailed in order to substantiate a massive $620,000 loan.

But the home buyer clearly couldn't keep up.

It must be a hard lesson for one to learn, as a person's credit score and ability to buy another home someday will be forever affected in an market economy now destined for more restrictive lending practices going forward.

Fed Chairman asks Congress: Pretty Please with Freaking Sugar On It, Regulate Mortgage Lenders Better

The financial holdings (loans, mortgages) of mortgage giants Fannie Mae and Freddie Mac are considered by Fed Chairman Ben Bernanke as too risk and deserving of stronger regulation by the U.S government.

But wait a minute.

Aren't Fannie Mae and Freddie Mac both GSE's? Created by Congress, both ARE GSE's, Government-Sponsored Organizations, designed to pump money into the economy by buying up loans, securitizing them and selling them on the worldwide financial exchanges?

The fear is, if these two giants start catch a cold under the weight of risky mortgage loans, that the entire U.S. economy could get pneumonia and die.

And so here we are again. Those of you who remember the bailout of the U.S. savings and loan industry in the late 1980s, will be surprised to learn that we as a nation is chock full of amnesiacs. Government regulation of both Fannie Mae and Freddie Mac organizations has been frowned upon in the past, basically because the housing market has been considered integral to the overall growth of the U.S. economy.

But will tighter regulation by the new Congress of both GSE lending practices and financial holdings, impact the economy in other respects? Tightening the easy, no questions asked availability of loans for the real estate market - which is already reeling in most parts of the U.S.? What happens when you remove the financial grease from the economic skids?