KeNosHousingPortal.blogspot.com
TOP STORIES:
Yet another attempt to keep house prices too high, using taxpayer money - (www.marketwatch.com) A pilot program close to getting off the ground in Illinois seeks to use $100 million in taxpayer dollars to help potentially thousands of troubled mortgage holders in the state who owe more than their homes are worth. Backers of the program, which needs the approval of the U.S. Treasury Department to move forward, argue that it will stabilize neighborhoods, reduce foreclosures, help the economic recovery and ultimately cost taxpayers nothing. Opponents insist it will leave taxpayers on the hook and drive better-off homeowners to engage in so-called strategic default, leading to more foreclosures and less stability. At issue is a proposal by Mercy Housing, a non-profit group that’s seeking to set up a mortgage stabilization fund using $100 million in capital from roughly $7.5 billion in taxpayer funds from the Troubled Asset Relief Program.
More selfserving bullshit from the National Association of realtors - (www.irvinehousingblog.com) The NAr released its spin concerning the very poor sales numbers in April. As expected, their words are mostly self-serving bullshit. Since Barry Ritholtz post on How to Read National Association of Realtors News Release, I have been contemplating the utter disrespect the NAr demonstrates for its customers through its constant manipulation of data for the sole purpose of convincing buyers to act even if it isn't in the buyers best interest to do so. It angers me that such a corrupt and self-serving philosophy of business is at the core of the NAr because their actions harm so many people. The NAr doesn't care about its customers. They have no interest in sharing the truth or providing accurate information if such information may cause a buyer not to buy or a seller not to sell. A reasonable deduction from NAr press releases is that they will say anything to generate sales, specifically they want to control buyer psychology. Spin and bullshit have a purpose. Many people considering buying a home are unsure if the decision is wise, and they look to figures of authority to validate their desires to buy and placate their worries. Unfortunately, realtors are considered experts, so their words carry influence. realtors use this implied authority to their advantage. Therefore, every word that is not data in a NAr press release is designed to positively impact buyer psychology. Perhaps in an era of steadily rising house prices tethered to incomes, there is little harm in pushing a few wavering buyers into what is often a good purchase. At least that's how realtors comfort themselves. But once realtor induced kool aid intoxication took over, our housing markets became more volatile, and when there is volatility, the market undergoes periods of falling prices when it really isn't a good time to buy.
Service Members Grapple with Housing Market - (www.thefiscaltimes.com) Yes, this story validates the previous story (about self-serving bull-shit from NAr!!! Air Force Lt. Col. Michael Ballek thought the four-bedroom house bordered by sage bushes and mountain roads on the edge of Las Vegas was a good deal when he purchased it for his growing family in 2007. Nevada's skyrocketing home prices had dipped slightly that year, and the so-called experts all assured him he was getting in at the bottom of the market. Property values continued to fall, however, and next month Ballek expects to sell his family's home for less than what he owes on it. He doesn't have much of a choice. Like thousands of service members, Ballek is moving across the nation this summer per the military's order. "How can you feel?" Ballek said. "It's frustrating." Depressed property values have become a national crisis for homeowners who purchased their houses before the collapse of the housing market. But for members of the military who must comply with relocation orders or face disciplinary action, waiting out the housing crash is often not an option. In many ways, military homeowners have no one to blame but themselves. Service men and women begin every assignment with the knowledge that they could be relocated at any point, and will likely be moved within five years. The Department of Defense encourages military employees to rent, not buy.
California forming mortgage fraud task force, WAY too late - (www.latimes.com) The team of 17 lawyers and eight special agents from the state Department of Justice will pursue corporate fraud, scams and fraudulent lending practices, Atty. Gen. Kamala Harris says. California Atty. Gen. Kamala Harris, saying that years of unscrupulous lending still haunts the state, is creating a 25-person task force to target mortgage fraud of any size — from small operations that preyed on troubled borrowers to corporations that sold risky loans as safe investments. The team of 17 lawyers and eight special agents from the state Department of Justice will pursue three major areas, Harris said in an interview:
· Corporate fraud, including instances in which bundled mortgages were sold as securities to the state or its pension funds under false pretenses. Harris said her office plans to prosecute some cases under California's False Claims Act, which she described as "one of those very powerful tools that California uniquely has … to pursue, in essence, what are false claims that are submitted to the state."
· Scams, including instances in which consultants, lawyers and others took fees from people in foreclosure, saying they would help the homeowners get loan modifications or other remedies, but delivered nothing.
· Fraudulent lending practices, including deceptive marketing, failure to fully disclose loan terms and qualifying people for loans who couldn't afford the terms.
Jail Sentence for Pot Head Realtor - (www.yorkregion.com) A former Richmond Hill real estate agent has been handed a 6-1/2-year sentence for her role in an elaborate marijuana production ring. Jennifer Sau San Wu, 46, was sentenced by Justice Michael Brown in a Newmarket courtroom yesterday. She was also ordered to forfeit all assets, fined nearly $100,000 and was given a weapons prohibition for 10 years. During an earlier court appearance, Ms. Wu pleaded guilty to one count each of production of marijuana, possession for the purpose of trafficking marijuana, theft of electricity, possession of property obtained by crime, tax evasion, failure to comply with restraining order and failure to comply with recognizance. Ms Wu was extradited from Romania in March after York Regional Police investigators found her working at a daycare centre in the European nation. She fled Canada prior to a 2006 court appearance. Ms Wu was arrested in 2002 in connection with more than 55 marijuana growing operations across the Greater Toronto Area. It was believed she used her position as a real estate agent to obtain rental properties to be used in the operation.
OTHER STORIES:
Day of reckoning for commercial real estate in 2012 - (www.mybudget360.com)
Australian banks facing 'global shorting' - (www.theaustralian.com.au)
Home sales slump is widespread - (www.lansner.ocregister.com)
No senior Wall Street executive has been criminally charged - (www.bloomberg.com)
If You Want Education Solutions, First Pin Down Where the Money Is Going - (Charles Hugh Smith – www.oftwominds.com)
Nearly Half of Americans Are "Financially Fragile" - (www.blogs.wsj.com)
Is Deflation in the US Housing Sector Accelerating? - (www.us1.institutionalriskanalytics.com)
As Banks Hold Foreclosed Houses, a Kink in the Housing Market - (www.nytimes.com)
Foreclosure flood may not have crested yet - (www.msnbc.msn.com)
Investing in Gold: A Self-Contradictory Phrase - (www.bucks.blogs.nytimes.com)
Melbourne housing joins the slide - (www.macrobusiness.com.au)
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