Ed's Blog

Enough Is Enough, No Hell Is Waiting for Us

2008-08-21T10:53:26Z

Facing real estate severe downturn, there are so many analysis, outcries or arguments to government's "aids", "baiout", "take over", or "nationalization" leading to a devastating selloff of Freddie and Fannie's stocks yesterday. So much have been said, so much noisy sounds confused us.

Enough is enough. Nowadays, all those people in media have been trying to give us a picture of "no hope." Is it really a doomsday right at the corner? Wrong.

Is government's aid or bailout so terrible to investors or taxpayers? I have no simple answer to that. Or I may say there is no right or wrong answer to that. It will depends on which perspective you will take or what kinds of steps U. S. government will take. I hope those solutions provided by "stimulus program" or "rescue" bill are effective, not a corrupted, method to solve the problems we are facing. Even so far I don't even see they are correct or effective, I keep myself optimistic and believe tomorrow will be better.

Why I say that? Everyone has his theory or speculation towards today or tomorrow. I believe it is very difficult to change people's minds or sentiment by a theory or argument, when I look around to see so many intelligent people speaking the results are the cause. I don't want to convince you guys by any theory. It would be of no use. What I am going to do?

I am old enough to go through so many things. So many modern people don't like to read History. Okay, I am not going to ask you read ancient Rome history. let's just look backward for 30 years. There is a fact of so-called "Lacocca Miracle": Lacocca became chairman in 1979 and helped the automaker stave off bankruptcy during a severe auto downturn, retiring in 1992.

It is so vivid in my minds as it happen yesterday. I don't ask you to read all the articles about this miracle. Make it very simple, just read an old article "Chrysler's Crisis Bailout" published by Times in 1979. Will you see or hear the same rhythm such as "bailout" saturated yesterday and today? Just as Mark Twin said, "History won't repeat itself, but will play the same rhythm." Do all the words used in the article sound very "modern" familiar to those articles published today?

Hope everyone has his or her discovery or lesson on the similarities now and then. Certainly we have to replace the old day's "millions" dollars with "billions", "billion" with "trillion" because time has changed. 50 years ago, a person who left less than $3 million in his inheritance would be qualified himself as one of the richest. Now nobody will be listed as one of the richest by Forbes if he is just a "millionaire," he has to be a "billionaire."

Here for your reference, I post the web link of Times as follows:

Monday, Aug. 20, 1979

Chrysler's Crisis Bailout

Questions about whether a quick federal fix is right-and will be enough The Carter Administration decided last week that now was the time to come to the aid of the nation's most beleaguered major company. After weeks of rising pressure for a federal fix for the multiplying problems of Chrysler Corp., Treasury Secretary G. William Miller produced-and Jimmy Carter approved -a Government bailout. It was designed to prevent the nation's No. 3 automaker (1978 sales: $13.6 billion) from sliding into a bankruptcy that could have put many thousands out of work and sent a shudder through U.S. financial markets.

Beamed Chrysler Chairman John Riccardo "We are extremely encouraged. This fits the bill."

In his first public act at the Treasury, Miller spelled out the ideological ground rules of federal aid and warned other troubled companies against expecting similar help. Such assistance, he said, "is neither desirable nor appropriate, being contrary to the principle of free enterprise." But Chrysler was an unusual exception, he added, in which the Administration "recognizes that there is a public interest in sustaining [its] jobs and maintaining a strong and competitive national automotive industry."

Despite Chrysler's immediate enthusiasm, the Treasury package falls far short of what the company sought. It does not give Chrysler the $1 billion cash aid that some analysts insist is the minimum it needs to keep going until late next year.

That is the earliest time Chrysler can expect to make money from the new generation of front-wheel-drive compact cars now being developed by President Lee lacocca, who will replace Riccardo as chief executive by this year's end.....

Why Benny Avoid to Answer the Second Question?

2008-08-18T13:51:39Z

Why We Need 1031 Exchange Scams to Devastate Investors?

With buyer lined up, who needs an agent?

Here I read an article today, written by the very good and experienced attorney Benny Kass for Inman News:

I am particularly interested in his opinion on 1031 Exchange in answering a question of Bob as follows:

DEAR BENNY: I have been considering a 1031 exchange for some time, and I have wondered what happens if the intermediary holding the escrowed funds goes bankrupt. Is the intermediary allowed to commingle my funds with funds of the company? Is my money protected during this bankruptcy, or would I become just another creditor in a bankruptcy action, and have to get in line? How can one ensure one's funds are not lost? Can one buy insurance to guarantee protection against such a risk? I know the intermediary must be bonded, but that won't cover all eventualities. --Bob

What the answer could Mr. Kass provide, from his knowledge and professionalism? Here it is:

quote:

DEAR BOB:

...... [note: I am omitting Benny's "answers" seemed irrelevant and not to the point]

I do not believe that intermediaries have any legal obligation to keep these funds in a separate account. You certainly can require this when you are discussing using the intermediary.

As for insurance, that's a good question, the answer to which I don't know. Ask your insurance agent, and let me have the answer.

unquote.

I love Benny's correct answer to the first question: "No need for an agent," But, Benny made his second answer interesting. Did Benny give a precise answer to the question or avoid it?

Good question. You tell me, please.

As I know, there is no one selling "business" insurance to ensure your business doesn't fail. I have never known any insurance has a coverage of "no misuse" for your trust fund. The only exception "insurance" I've seen is from Washington government. Washington state will give you $100,000 for "no fault" being a victim killed by a series killer like the Green River case. So who's the insurance agent Benny suggested you to discuss with?

If you know any company selling the above insurance, let me know. Thank you.

How to use 1% down payment to buy a $300K house.

2008-08-16T15:08:45Z

Can you get me a loan to purchase a $300,000 house if I have only 1% down payment?

If you are an agent and I ask you the above question, do you think you are able to have a right answer for me?

I would like to further ask you a question: "Can you get me a loan up to $150K to buy the house and also promise me that I don't have to pay it back?"

Are you going to response to my questions by other questions: "Are you crazy at this critical time? Nobody will do a subprime loan. How could you believe there would be a brand new Mr. Mozilo, CEO of Countrywide in a magic dress of Santa form North Pole?"

Please give your answer to reply here now, and have a 2nd thought later.

I have delayed posting this article and make it as a draft for a week. Before I give you a definite picture of who is the new Mr. Mozilo, I will give you a hint: Except our government, who else it will be? Wah! you know the answer? But, since when Geroge or Benanke become a Santa? You have a wrong answer if you think of these two Mr. B, try it smarter again.

My draft may be posted here in 2 days. But I won't do it if anyone has kept his mouth shut as he or she did to my recent 3 articles.

So don't blame me if I don't post the real case to let you know the fantasy island of new Mr. Mozilo-santa.

When Schumer gave 4 Gold Medals of "Bad Policy" to Bush, He Should Give Himself the 5th One.

2008-08-15T12:31:12Z

Olympic Gold Medal: Greenspan Tells us Housing will Bottom in 2008. Meantime Foreclosure Filings hit Historical Record.

Posted: 14 Aug 2008 02:47 PM CDT

What may be more amazing...

Amazingly Greenspan is saying the right things in certain respects yet this is only to cover his silence during the actual bailing out of Bear Stearns and also, Fannie Mae and Freddie Mac through the Housing and Economic Recovery Act of 2008 otherwise known as the Crony Capitalism Bill. Here is what he had to say this week:

"(Reuters) They should have wiped out the shareholders, nationalized the institutions .... which the government would eventually auction off to private investors, Greenspan said in an interview with the Journal."

....

Baloney. This guy is on a legacy tour trying to revise history. He is saying the right things but his action speak otherwise...

To a certain extent .... much of what goes on behind closed doors is a mystery to most. In fact, that is part of the mystique of the Federal Reserve that when they speak, a fleet of economist are sent out trying to decode the hidden meaning in the talks. These economist and analyst then try to bring the conversation to the public with a more down to Earth language. It is ultimately a sham.... The history of the Fed is unknown to most of the public not because the information isn't there, but most simply do not care.

It is becoming rather apparent that many saw this market imploding yet did nothing. The logic is rather simple and not necessarily conspiratorial. The boom of the housing market brought untold riches to many people. The solution was simple. Stop the massive and rampant fraud and speculation. Hike rates up. Yet these acts would assuredly pop the bubble and blame would be placed on whatever agency or person that took these actions. The politics got in the way of good policy.... No one wants the punchbowl to be taken away and the public got drunk off easy credit.

....

Look at the current rally today in stocks. This is a perfect example of delusion. Today the nationwide foreclosure filings were released and guess what? They are the highest ever! Take a look at this chart:

This was the largest number of foreclosure filings ever recorded yet if you look at some of the financial and housing stocks, they rallied because sales increased a bit. Again, ... you'll quickly realize that things are not improving. And you'll also notice how Greenspan talks about national housing prices bottoming in 2009. Which is a nice way of covering yourself since 5 states make up 57% of all foreclosure filings. Places like California won't be hitting a bottom until May of 2011 and the data points to this.

Here is a breakdown of foreclosure filings from the top 5 states:

Clearly .... Even with the massive 38% drop, California home prices are still $368,250 while the median household income is $53,770. This ratio is simply unsupportable even at current levels.

I've noticed a few mainstream articles cover the so-called shadow inventory issue. We talked about this in the previous articlebut I've raised this issue for months on end. Call it what you want but this is shady manipulation of the market and toying with nuisances of the MLS. Want some proof? Take a look at the July 2008 foreclosure filings for California:

July 2008 Data
REO: 23,406

NTS: 12,506

NOD: 36,373

Approximate California Inventory: 310,000

Total Southern California Foreclosure inventory today: 8,548

....

Think about that for a second. Southern California made up 49.4% of all California sales in the month of June. We had 23,406 homes go back to lenders in July and 12,506 trustee sales yet the MLS foreclosure sales are only at 8,548 for Southern California? Let us assume that out of 35,912 homes that were foreclosed in July half are in SoCal. That would push up the inventory numbers by 17,956 just in one month! .... (A)ccording to their data months of inventory is actually getting healthier.

It is absurd. REOs are being understated to the point of being criminal. Yet in manias people want to believe fudged data just like they saw nothing wrong with subprime lending. When you look at various sources, isn't apparent what is going on? Greenspan should win a medal for revising history. Clearly people are now trying to underplay the actual market data and want to believe that housing is at a bottom. Anyone with an ounce of logic can see the numbers above and see something is clearly wrong.

****** ******* *******

My first response:

My salute to Dr. Housing Bubble.

In a very short article, Dr. Housing Bubble covered so many doubts I have and provided his explanations:

1) FDIC and OTS took over Indymac Bank on July 11, 2008. In fact, it is a "nationalization" of Indymac Bank to wipe out private IMB shareholders, without solid reason, as Greenspan suggested to two GSEs. IMB had never been on the watch list of FDIC 30 risky banks this first quarter. Hardly to say whether it was on the list until the month of July. The only one reason OTS officially admitted for them to take over IMB is that they "believed"there is a situation with that Indymac couldn't deal. In short, OTS did not believe Indymac could handle customers to "run a bank." Is that what's the situation and who created it? Go ask Senator Schumer about his series of "concerns" sent to FDlC and what's happen after his letters?

Now, let me ask you a question: Is there any banker, including JP Morgan, Citi, BofA, who can deal with such a situation Indymac faced that most of his depositors want move money out of his bank? Bear in your mind, how much cash reserve the banker has in order to run a federal banking business. If the legal requirement is only 10% to 15%, how could he or she have the cash liquidity when all he/she has is those auction-grade securities at hand?

Next, if all of our bankers would be unable to meet the challenge created by Schumer's situation of political manipulation, why pick on Indymac Bank alone? Could Washington Mutual or Downey Savings handle it? Or name me one who can?

Thirdly, we America is a free society. Could we be allowed to do things so radical as a communist to "nationalize" a private company to wipe out its shareholder's interest? Is it what we called "due process" or "ends justify means"?

I sure agreed on Dr. Housing Bubble's saying: "Baloney." Common, that' a wrong answer. Give me a better one.

2) I especially love these two expressions of Dr. Housing Bubble: "the logic is rather simple" and "Anyone with an ounce of logic can see the numbers above and see something is clearly wrong. However, I am just wondering how many people have an ounce of logic when manias exist with herd mentality in his brain?

3) I have been wondering where those REOs have gone for a year. How could they disappear in the thin air of writeoff or writedown? Then, who is supposed to hold the bag?

As figures said, in SoCal, we had 23,406 homes go back to lenders in July 2008 and total accumulated inventory of REOs should be 310,000. In the summer of 1996, we saw the highest number in foreclosure activity report of about 60,000 at the peak. Clearly, the situation is a lot worse than that, about 5 times more activities in foreclosure.

But how come we have only 8,548 REO listed on the market? Why those financial institutions are seemed not "anxious" in selling those "non-performing assets (allow me to say more precisely a.k.a. debts" or giving a hard time to give an approval to shortsale agents. A lot of smokes here, are there some other "game plays" for them sitting comfortably on the "junk portfolio" and waiting to be "rescued" at other's expenses?

4) According to real estate statistics, there is only about 5 percent of our existing residential units that is available for purchase. Some economic students said that creating 19 times wealth to our people (95% divided by 5%=19). Yes, we felt so rich when housing prices went up, but it is just a "equity" or credit. Everyone with knowledge knows the difference between warm "credit" and cold "cash." Also, as Prof. Lestor Thurow said, our American economy is hardly qualified as a "perfect competition" model. Indeed, we are an oligarchy market. If everyone put his own house on the market, we would have a "perfect" market and price would be amazingly lowed.

Clearly, it is not the case in our scoiety. But how could the 5% affect the other 95%? How come our lawmakers are seemed very concerned about the 5% and have tried to rescue them by at least putting our green dollar at hugh risk and inviting "inflation"? Who is daring to ask those 5% liable for what they have recklessly done? To avoid them as plaque and have a surgical operation to get rid of them as a cancer to our body. Who would take care of the majority of taxpayers to stop the cancer spread (a.k.a. subprime toxic loan spillover)? Looking around, there is none, except the Indymac's downfall.

Recently when my neighbors came to my doorsteps and asked me to loan them $20 for their gas purchase, I wish someone who runs for the recent presidential campaign could come up and say, "Enough is enough. Let's get down to the Earth and do the basics to take care of our own people first."

Don't tell me that I am a protectionist when we spent trillions of dollars to be nice to other people and ignore the poverty in our backyard in which 20-25% of our American (a.k.a. poor folks) faced and suffered.

Sen. Schumer gave 4 Gold Medals of "Bad Policy Olympic" to Bush administration yesterday for surging foreclosure, highest inflation, job loss. Why didn't the Senator give Himself the 5th one of "politic interworking with economy"?

I am sure be very happy to give Dr. Housing Bubble a Gold Medal for his "Good Insight."

I hope, someone has the guts to tell us the real picture or interesting stories. And I believe it would be as interesting as the $100 billion JP Morgan and other big corporations are NOW so eagerly making a $6 stove sale to people in the 3rd world. Be careful, use your imagination to not look down at JP Morgan! Through the "skilled" handling, a huge profit can be created by their magic wands: $30 of carbon credit out of every smallest deal as valued as a $6 McDonald's hamburger package.

Gee! make a profit of $30-60 out every sale of $6, I have to say "mission impossible" done perfectly. I couldn't done better than that.

Why We Need 1031 Exchange Scams to Devastate Investors?

2008-08-13T10:41:18Z

1031 Exchange Scams Can Devastate Investors

By Ilyce Glink, Wednesday, August 13, 2008.

Inman News

****** ****** ******

I always find that Ilyce's articles very helpful and educational. This one is very interesting.

As Ilyce's subtitle stated, "Do you know who's holding your funds?" Here is my response:

Very good question? Do I have to know that? Why I have to know that?

I have studied 1031 exchange program for many years. I have a basic question: why we have to have a third party called "qualified intermediary" to take advantage of the program?

First, our lawmakers have their reasons or concerns: to invite a third "person" in order to be able to "verify" the process is real "exchange", or to create a job.

Next, if our lawmakers' main purpose is to make sure it is a true "exchange," they really don't want our citizen have the opportunity to "touch" or "mingle" the fund. Under our laws, using a 3rd party working as a middle tool or vehicle is a must for us to be qualified an exchange. But, not only in theory also in reality, is it the only way to prevent any abuse as our Congress has in mind? Nobody needs a cool mind to say, "No way, Jose!"

Let's go down to the basic bottom, there are so many ways to prevent us from using the fund out of an exchange. Can we be allowed to hold the check without cashing it out, i.e., we have absolutely no way to mingle the fund with other money of ours. There is no way for us to touch it, except holding a piece of check that has no value in itself, i.e., a useless junk paper. Can we be allowed to open a trust account with a bank under our names and its sole purpose is simply holding the fund for exchange?

The legitimate and correct answer is, "No, No, No." But may I ask you "why not"? In short, our lawmakers want to make things easy for them or IRS for their convenience. they care less for creating a more "complicated" system at the expense of taxpayers.

Just as Mr. Nathanson said, ""The IRS is unforgiving on this issue because they say you have the right to choose any 1031 exchange company you want. If you choose a company that turns out to be a bunch of crooks, the IRS says it's your problem. You still owe the taxes."

Certainly it sounds like we have the right to choose an exchange company. From a different perspective, I'd rather to say we have the "obligation" or "duty" to give out our "trust" to a person or company of that we hardly know without our further performance of due diligence, per your laws or game rule. That consume us time, money and energy which will increase our business costs and decrease our capability to compete with those challenges from other economies. At least, please don't hope a positive productivity to be added into our national economic strength, except creating jobs as I know.

Remember, everybody knows that a 3rd person shall have no business in our transaction and to cut out a middleman is a saving for a business unless it is necessary. However, If we want to take the advantage of a valid exchange, we have to follow the legal requirements set by our lawmakers. Clearly we have no choice but to invite a third party involved into our 1031 exchange to increase the cost of business.

Everybody can easily answer my question: who is the best and safest person to trust? That's YOU who is 100 percent trustful, liable and responsible for yourself. How come our lawmakers don't allow us to do exactly that? Why they created a monster system to ask us placed our trust and funds to others' hands for possibly being cut corner, confused, cheated, scammed? After first adding risks to us, then blame us again for the risks, mistake, omission or negligence; and shamelessly have us suffered as victims twice, if anything goes sour? Why don't they be kind to "rescue" us as they have tried to rescue those Wall Street big cats or subprime loan victims?

Is it fair for an individual to face these exchange scams created by a legally organized mess (note: I have no intention to mean that of "organized crime." At most, I will say it is the unavoidable built-in result of 1031 exchange program); or to be held liable for the ir-responsibility of other's deeds?

Probably we have to overhaul the basic underlying philosophy of many modern set-ups. So many things have complicated our lifestyle and we call or label them as "the beauty of variance or choice." We have even gone further to say that we need more "regulations" to enjoy a more "well-managed" society. How frustrated we are in this modern rat race, even we just want a simple life? There is a saying, "We do it right at the first time we do it." Did our lawmakers go back to make sure they did a good job at the first time? Or are they acting or inacting just like those whole bunch of crooks mentioned in Ilyce's quote of Nathanson?

Please go read my article: Is Indymac Bank Alive When Melon Turns Into Lemon? http://activerain.com/blogsview/633763/Is-Indymac-Bank-Alive. You are going to explore how gutless, difficult or patient we have to be in dealing with a social mess, as Nathanson says, "but it's amazing how patient people have become in the wake of the Indymac Bank failure." Do we have an exit to stop playing this kind of game?

Thank you in advance, if you can be of help.

Is Indymac Bank Alive When Melon Turns Into Lemon?

2008-08-09T19:39:16Z

Did you watch the movie "The Day After"? I did.

Just as the ending of a fairy story: "they live happily thereafter," I didn't really care much about the days "AFTER", even the power of a nuclear war terrified me right at the movie theater. Now, I have been through so many things that leave me a chill feeling of "The Day After."

Yesterday I watched Judge Hatchet's TV show. She said: "We live in a very interesting time. We need new leaders" in addition to her famous saying: "I went to school, don't play game with me." True, education is so important that we can make our judgment and take new challenge. But tell you the truth, it is very difficult to deal with all the new changes we are facing NOW.

As a naturalist, I fully support the idea "Simple is beauty." However, life is full of complexity, particularly in this transition stage of high speed internet. Everyday we are forced to face new kind of development, but we have difficulty in understanding them, let alone adjusting ourselves to these huge new changes in their full gear. For an individual, it is an everyday episode like "The Day After" happened in our modern life.

There are so many fancy devices that suppose to enhance our communication skill or productivity. Automatic answer systems are trying to replace our operators. After the phone or fax machine, Email or Cyberspace is so convenient that we can reach others easily. However, is our society being improved or benefited by those great inventions? Hardly to say a conclusion unless our behavioral norm or social structure can be updated.

Remember those days you said "I hate to talk to a company's answer machine"? A consumer has no way to talk to a human being after a corporation installed an automatic phone system. Not like those days we are able to walk in a store or office to get things done or set things straight, right at the spot. It seems everyone is busy; but nobody is in charge or minding the business. Just like 911 incident, we are lacking a leading device or coordinating design to make things easy, simple, efficient and coordinated. Now, in fact, we are experiencing so many "The Day After" happen in our life.

New ideas keep coming up almost everyday. For example, all the bankers are promoting a "paperless account" and automatic "E-payment" plan now as Mr. Pickson does to "wind power" concept, for the goodness of Mother Earth and energy solution. Yes, those banker's favor programs are so convenient with good benefits. Like it was said: "just one phone call away", now here comes "just one click away." Are they really improving our communication and efficiency?

It is easy for you to get on the horse, but can be very miserable to let you off if you want to quite playing. As one of my attorney friends said, make sure you know the exit door in case of emergency before you walk into a building. Unfortunately some modern "buildings" do not come with an easy fire exit.

8 months ago, I participated in a DRIP program of N** Melon that requires automatic "E-payment." Even I don't trust that device, there is no way to enroll into the program unless I accept its request of electronic automatic withdrawal. Remember that I am used to say: "I am a lazy retired man." I don't like to bother people for help if I have control over the situation. In the past months, I have to bother my so-called "transfer agent" of the program twice.

About 40 days after my enrollment, there is a time when I want to increase my stake at a stock, it is very critical for me to move fast. I made my first contact with N**, I was told that Melon would not accept an order over the phone to sell or buy any stock. The only way to do that is to log into their website to give my demand online. Then I realized that it would take about 7 business days to "execute" my order. Hard to imagine, in the most advanced or modernized city of the world and in the current volatile stock market, the big bank service allows its computers so programmed to have 7 days to buy or sell a stock. Following their program, you could end up in 7 days later by buying a stock at its peek share price while it was been at the very lower level when you placed an order to buy, right? Or you could place a short order and ended up later with selling at the lowest share price.

N** set the game rules so inflexible. Their employees suggested me to use regular stock brokers to do those activities, in my first contact trying to increase my stake. Nothing I can do about it once enrolled. Therefore, I decided to take "buy and hold" strategy, never trying to do anything to bother N**, even it had a very profitable and good time to sell when my IMB stock did go up to $11-12, almost 3 times higher than what I paid for. The system stops me from making a profit.

Then, there came a once-in-a-life time situation: Indymac's "The Day After." On 07-11-2008, Indymac Bank was taken over by FDIC and OTS. Right at that moment, IndyMac Bank was pronounced "DEAD." I will assume everybody will agree with me that the old IMB stock was ceased to trade. So did my DRIP program too. Surprised me enough, it is NOT dead when I saw Melon kept charging me my monthly E-payment of $100 to buy IMB stock on July 25, 2008. I made my 2nd contact with N** Melon trying to find any advice or explanation from them.

Enclosed herewith is my email of 07-28-2008 to N** Mellon as follows:

Hi!

There is one thing I need your help.

Indymac was taken over by FDIC & OTS the last 11th day of July. It seems Indymac Bank was dead since. There is no activity in Nasdaq stock market. What is going on for trading IMB's stock or what will be happen for IMB's original stocks?

Yesterday I was still charged by your service $100 to continue my ISD program to buy IMB's stock. I felt very confused since the original IMB is no longer existed. How could this stock still being traded and who is responsible for the transaction fee charged (it was paid by IMB)? If I decide to stop my participation to your ISD program, what should I do?

Please provide me any info. Thank you very much.

I made a 2nd phone call on 08/04/2008 since there is no response to my inquiry. I am unable to log into my account so that I called their toll-free number to talk to their employees.

The first gentleman said to me that N** is no longer a "transfer agent" to Indymac Bank and there is no Indymac DRIP program for investors. He listened to my story and seemed to be surprised by the recent charge made on 07/25/2008. He said he was unable to answer my questions; and had to transfer my phone call to those people who used to handle IMB's DRIP program. After I talked to a lady Pamela, she was so surprised that could happen too. She is a nice lady and tried to comfort me that everything would be taken care of. She asked my current phone number and email address; and said to me "just wait for their answer or phone call". I asked her phone extension so that I could call back to talk to her, if in need. She replied that there is no extension (Note: I know, I could still unable to locate her as my other big bank service center told me they are unable to go back to the extention even I had it). She said everyone can help me since my communication and case number are in file.

The Day After I talked to Pamela, I checked their public website to dig out its current DRIP programs. Clearly Indymac is no longer one of them they serve. Here is the web page under "I" I posted in my word pad that day:

https://vault.mel************r.com/jsp/servlet/SearchServlet?SecureNo=null&PLID=BNYM&fromLogin=true

Your search has returned 18 company(ies). To compare plans, select the companies that you want to compare and then click on the Add to My Selected Company List button below.

Select	Company Name	Minimum Initial Purchase	Electronic Purchase	Plan Type
	ICON PLC	$200	YES	DSPP
	IMATION CORP	$500	YES	DSPP
	INDUSTRIAS BACHOCO	$200	YES	DSPP
	ING ASIA PACIFIC HIGH DIVIDEND EQUITY INCOME FUND	$0	NO	DRIP
	ING CLARION GLOBAL REAL ESTATE INCOME FUND	$0	NO	DRIP
	ING CLARION REAL ESTATE INCOME FUND	$0	NO	DRIP
	ING GLOBAL ADVANTAGE & PREMIUM OPPORTUNITY FUND	$0	NO	DRIP
	ING GLOBAL EQUITY DIVIDEND AND PREMIUM OPPORTUNITY	$0	NO	DRIP
	ING INTERNATIONAL HIGH DIVIDEND EQUITY INCOME FUND	$0	NO	DRIP
	ING RISK MANAGED NATURAL RESOURCES FUND	$0	NO	DRIP
	INGERSOLL-RAND COMPANY	$0	YES	DRIP
	INSIGNIA SOLUTIONS	$200	YES	DSPP
	INTERNATIONAL PAPER COMPANY	$500	YES	DSPP
	INTERNET INITIATIVE JAPAN INC.	$200	YES	DSPP
	INVESCO LTD	$5,000	YES	DSPP
	IRSA INVERSIONES Y REPRESENTACIONES	$200	YES	DSPP
	ITT CORPORATION	$500	YES	DSPP
	THE INTERPUBLIC GROUP OF COMPANIES, INC.

Now, finally I received a letter of 08/06/2008 from N** Melon. Guess what? The letter advises me to check my account in their website. Did I tell you and them that I had been unable to log into my account with them? So, I try to log into it again as the letter advised. Still, unable to log in again.

It is a 3 page letter just like every monthly 2 page statement I am used to receive, except an additional cover page mentioning my recent inquiry. Nothing is said to pinpoint my concern or questions mentioned in the above email, just like pretending that I didn't contact them. Simply put, it seems to me N** ignore me and go ahead to do whatever they want no matter what I asked, even they are no longer a transfer agent to IMB. Then, why Melon doesn't set up a webpage or contact their IMB clients for further instruction as FDIC did when OTS took over Indymac bank? Why they don't close those accounts with permission or cooperation from clients, while keeping withdrawals out of their E-payment program when they are not even a transfer agent to Indymac Bank and seemed to "refuse" or terminate clients' access logging into their accounts (at least, I am unable to do that)?

I really don't have any idea how to easily deal with the situation. It seems I am going nowhere and no melon people is responding to my situation as we are buying a lemon car. Am I going to be charged again this coming August 25th and the day thereafter? Oh! it is nobody's fault, just a computer's mistake!

After talking to my friends working in two different banks, here are some solutions:

1) I am so surprised that nothing my bank friends can help without difficulty. Since it is an "E-payment" agreement between me and N* Bank, there is no room for a 3rd party to say on this "pioneer" territory with less well-established rule or regulations to follow.

2) All my bankers said, the most they can do about is for me to pay a hefty fee of $20-30 to place a "stop" order. There is no guarantee that it will work and, if it does work, a stop order is only "good" for 6 months. After the period, those who have the right to automatic electronic withdrawal may re-start the charging process. And they know they can do that. So every 6 month I have to re-do the stop order.

3) The best way is to simply "close" my checking account. That will set the record straight. No account, no E-bill or E-payment.

Sounds easy, but do I have to close my 20 year old checking account for someone's mishandling or wrongdoings, just as one year ago I closed one of my credit card accounts and asked a brand new card number while a merchant kept charging me monthly and annual fees every month, without reason, even I was reimbursed their fees 3 times and they kept doing it.

Well, I can go to DA office or BBB to file in a compliant. But all I want is just a easy and normal life, do I have to be bothered for doing those with negative productivity to my nation? I have never been in a situation like this: Indymac Bank is dead. But, I have no idea how to hold those shares of IMB junk stock without being forced to keep buying them at $0.105 a share and priced at $0.07 as of 08/06/2008 by N** Melon.

So many funny or ridiculous things do happen in this modern world these days. Next time I will share with you guys another story about my computer charging experience that you may never heard or believed. Right now, please give me your kind advice how I am going to hold those thousands IMB shares without further insane purchase.

I learn a lesson in the E-bill payment. Will you accept automatice E-bill program? I won't easily give out my permission for automatic electronic payment unless I am sure that it can be stopped at my will. Could anyone seasoned in these fields tell me how to stop the E-payment agreement or how to end my N** Melon's DRIP program?

Is It True to Expect Paying More for a REO As Bankers Want You to Believe?

2008-08-08T15:41:15Z

How to buy a foreclosed home

Sure, there are bargains to be had, but there are also plenty of pitfalls awaiting anyone brave enough to wade into real estate's maelstrom. Here's what to consider.

By Les Christie, CNNMoney.com staff writer Last Updated: August 8, 2008: 11:17 AM EDT

******** ******** ********

My Folks agent,

Today, it took me only a few minutes to read the above article of Les. When I rest assured you that she is a great reporter who spread the messages she has been told, I would like to listen to the more real encounters which are the real stories or real people involved, the real cases happened or you had pesonally been thorough, before I make further responses to the article.

Les has made some very interesting statements that are very enlightening, but are they true in the real world? Such as an announcement made by Fannie Mae CEO Daniel Mudd? Daniel said Friday that the company is pushing hard to sell more foreclosed properties, to get them off the books. "I don't think this is a time to be holding onto REOs and hoping for a better day," he said. Is he NOT kidding anybody? Or trying to be as cute as Countrywide former CEO Mr. Mozilo (Note: Mr. M. said: "Remember, we didn't reach out to home buyers, they came to us.")?

Don't you think it is very interesting? Fannie Mae has tried very hard to reach buyers, so don't blame FNM or FRE. Very good reason, if not an excuse. Anyway, nobody can force anyone to buy anything in our free society, right? (Noted: Both GSEs did accumulate a lot of REO, particularily in California, and kept sitting on these non-performing assets. It was reported that FRE's holding of 40% REO assets coming in from California's Alt-A loan in the past 6 months and its "assets" keep growing to the point that FRE has to raise an additional $ 5 billion capital to its original proposal, in order to be sound capitalized and to stay afloat).

While I agree with the idea that a REO bears the least risk in finding foreclosure treasure, are Les telling the truth that buying a REO is less profitable than buying a distressed property in the first two phases of non-judicial foreclosure process? Is it real for you to get only about 5% discount from those listing prices of REO that has a price tag 15% lower than market value? I personally found that it is another absurd "message" those RE sharks or cheerleaders want to spreed out and have the public believed. How about you?

One thing is very interestig for Les bringing up today's auction strategy when she wrote:

"Another way to buy an REO is through an REO auction... Pam McKissick, chief operating officer of Williams & Williams, an auction company based in Tulsa, said her company buys big portfolios of post-foreclosure properties from lenders and then auctions them to individual buyers. "

This report gave me more crystal pictures on "wholesaler" and "retailer" channels, even I did know that facts long time ago; and why we have so-called "auction but not what you traditionally thought" auction. That's exactly some said. It is just an "invitation to offer", subject to seller's final approval. It is a device to confuse the public who assume the bid is final and binding, but in reality, it is only binding on you (the buyer/bidder), not the seller/ banker/ auctioneer/ wholesaleer. It is indeed a great marketing invention and deception.

Very well, It fed me up enough for today, especially after AR's Agent Alert reached me as follows: NAR reports 80% of consumers go online to find their next home. See how you can win more sales online with your FREE Summer Sales Kit! (Note: I believe Fannie Mae CEO Daniel Mudd should take this Sales course, at least ask for the KIt).

please share us with your 2 pennies here.

Except Collecting Fees, What NAR Has Done to Protect Its Members?

2008-08-07T16:56:01Z

Please check the full content of this reply at: Wish you a good luck, Here are the Reo department web-linKs

It is easy for the Buyers agent to blame the Listing agent and accuse of trying to take both sides of the deal (which is rare that it happens). Every bank deal I have in pre-list sure I hype my investors up for it. Thats what I get paid to do, thats why my investors return to for and AMs continue to send me listings. Results!

When I do traditional listings I start hyping the property prior to the MLS listing. I work for the seller.

08/06/2008 12:51 PM

by Chad Baird (Re/Max Spirit)

******* ******* ****** *******

My 2nd reply:

I don't expect anyone to be a whistleblower. That's asking too much.

In my first reply to Chad, I intentionally omitted some comments on his statement. But, I really am very curious on Chad's saying that "sure I hype my investor up for it.... When I do traditional listings I start hyping the property prior to the MLS listing."

Does he say some kind of "investor club or group" marketing that is for old pals; or he just refers to those estalbished buddy connections have some kind of "priority" over others, as we refer to"my church members" as opposed to those people outside our church? Chad may simply mean "prospects list" or "follow up" in terms of classic sales training or marketing. Keep in mind, I am not saying something like "insider trading" in the stock market.

Can anybody interpret it for us what those words of Chad mean correctly? Don't jump into any conclusion before there is a solid evidence, please.

There are a lot of things happen to treat our follow agents so badly. Sounds like a lot of agents are at the hands of a financial institution, including but not limited to a bank's agent: those assest managements.

Recently I read a report from Inman saying that banks dumped all the legal responsibility to listing brokers, in order to get a perfect "ZERO RISK" in their risk management. I don't blame them for they are beaten almost to death by those SMART sharks in the recent credit crunch. However, isn't it going too far to ask other sub-section of business co-workers taking ANY AND ALL the legal liabilities? All the realtors have to accept the standard "listing agreement" created by a bank attorney that is at the 100% advantage of banks and has a potentially fatal effect on a RE firm, if something does happen. A realtor has no choice except "unilaterally surrender" to the requests of a banker. If you want do business, you have to accept the bank's listing form and JUST sign without making any change. Someone will if you don't exactly follow the instruction and they grab the listings as fast as hungry sharks.

Well, we still have choice, in theory, to reject or not to accept the arrangement under pressure. Yes, we are a free socity and nobody can force you to put your signature on a piece of paper. But do we really have the luxury of the freedom in reality?

In some areas, such as Merced or Riverside of California, there are over 80% of sales are distressed properties. The decent normal market is being destroyed. If you are not going to accept those banks' contracts and get those listings, literally it means you are out of street, if not out of business. Why our profession has to do business under such a "duress"?

I have been wondering for about 20 years for what NAR (National Association of Realtor) has done to protect its members' right, after I reached my conclusion that the worst profession in the world which has the least protection is the real estate agency? I decided to quit to become a RE investor.

Don't ask me what is the most well-protected profession. I believe you know the answer. If you don't, a hint is here: Whoever has no liability, warranty or responsibility on whatever the result comes out of his job or her performance. Give you guys some examples: lawyers who still deserve your consultation money, even they lose your case; and mutual fund managers who still enjoy their Billions of dollars annual pay or millions dollar bonus, even they buried their companies or lost all your investment.

Go to see what our fellow realtors have been treated at the following link:

Blog Comment by Tiffany Kimberling: On "BPO companies that turn into REO listings"

Wish you a good luck, Here are the Reo department web-linKs

2008-08-05T19:20:26Z

Name:	Bill *****
Email Address:	Bill ****@*.net
Subject:	US Bank REO dept url
IP:
Message:	Hello Ed, I have a client who has a full price offer into US Bank since July 24. We were informed on July 30 that another offer was submitte3d on July 28 that wasw 15k less than ours. Yet the bank has never addressed our offer (my buyer is strong with a 28% down payment, and excellent credit. Yesterday I was informed that our offer was still on top. Today we were informed that the bank is not considering our offer and (bye bye, so to speak). I asked if the other offer they are considering is higher than ours. The respose was that she things they are talking to a cash offer. I think they are wanting me to disappear so they can get the property to a friend at a bargain price. There is also a $3000 bonus to the buying agent. I want to talk to the REO department to confirm that they have received my offers, but I can't find a url. Do you have one that will get me there? Thanks, Bill *** Re* *** ****** ****30 Bill **@**.net

****** ******* ******

Dear Bill,

I don't blame you for coming up the idea of "plot" in our profession. I have seen it all in my past, even my present. Believe me even God can't do nothing about the reality of Real estate practice, let alone our Congress.

It is true there are a lot of sharks in business, and a whole bunch of wolfs working together in RE. Even at this moment, I still can point out some cases that some loan brokers are still doing the same SUBPRIME loan plots with reputable big bank. They care less about the damages made by the current credit crunch to our economy than their surviving needs. In fact, it is a JUNGLE out there on that justice can't have a say.

As it said: "different days, same old shits." Out there time has been changed, but something (such as "inside trading", "big brothers", still stay.

Here is the information you requested. Please use these two web-links.

http://www.usbank.com/cgi_w/cfm/personal/products_and_services/reoPropertiesReq.cfm

https://customercare.fnfismd.com/usbankhomemortgage/reo/reoReport.asp

Also, there are US Bank's mailing address:

U S BANK TRUSTEE
60 LIVINGSTON AVE
SAINT PAUL MN 55107-2292

US BANK NA TRUSTEE
3476 STATEVIEW BLVD
FORT MILL SC 29715-7203

I just pull them out of my file so that I am not sure they are working or not. In addition, it seems to me all the banks are lazy so that they don't spend time to improve their computer, communication or filing system. They don't improve the effectiveness so that their right hand doesn't recognize their own left hand. They don't care to let you catch 22. So expect you are getting nowhere and nobody is taking care of the shop. Don't expect too much from a conservative banker, he is just a 9-5 employee if not a bureaucrat, let alone she is an entrepreneur.

Wish you a good luck in this situation, even I really doubt on "Justice shall prevail and overcome the tyranny of status quo".

Let's Compare "HUD New Loan Replacement" to Bank's "Short Sale Approaval"

2008-08-02T12:01:33Z

FHA changes make housing bill a 'mixed bag'

Congress puts one-year moratorium on risk-based pricing

By Matt Carter, Wednesday, July 30, 2008

***** ******

To Lenn (ps. She is a person who post a brilliant reply),

I second your saying: "What I can't figure out is who and why is objecting to the seller paying the buyer's down payment. It defies logic, market and common sense."
Did we forgot those days our ancestors did the business when there was no title insurance,or home warranty? Nowaday, people called it "well-managed" society. Ha! under "well-managed" Wall Street machine, we are still not immune from those downhill of cyclical business.
To me, the so-called "rescue bill" has nothing new in it if we look backward how the private citizens did their jobs. The traditional private "equity-sharing," under the bill's new rule, transforms into Hud's more ugly and greedy equity-sharing.
Have you heard any seller or partner who wrote an equity sharing plan into his loan or contract could get what Hud would share the profits from 50% up to 100%? Hardly in my knowledge of the past, it is never heard for more than 50% profit without a huge contribution or interest reduction from the seller or investor.
Well, too much government involvement in the business seems the future trend.
Following the book or guidline, maybe better described it as "due process," a banker or a bureaucrat is well-protected. But who cares of the productivity, creativity, flexibility or "logic"? That's why we have all banker who accept an all-cash offer, but they won't let you "assign" the purchase contract or make any change of buyer's title holding at close of escrow.

* I don't even want to discuss about $300 billion government quaranteed "New Loan Replacement" program. Until this moment, it seems to me only just a few, if not "nobody", dared to explore the true meanings and analyse the possible effects of it.

**If we go to the bottom line, allow me ask you to first compare the traditional private "bank short sale" to this fancy government guaranteed "short sale" from all the difference perspectives of "consent of short sale", "loan relief tax consequence", "mortgage insurance premium", or "realistice market true value." I have so many questions as to the creativity of capitalism, such as if the homeowner is able to get a new loan with 80% market value (even the owner is willing to put additional fund, equal to another 10% down, to make it happen) to avoid the 1.5 percent HUD's surcharge. If not, why there is no choice for the home owner, except follow the "rigid" game rule made by the bill and pay a high charge traditioanlly called "PMI"?

Hope you agree that there is nothing new created by the so-called "rescue" bill. Every idea the bill presented has been existed in all those 30 years old classic books, such as "RE Exchange & Acquisition Techiniques." The bill is just a mirage full of smoke and mirror with highly expection toward government powers.

"Affordability" Is NOT the Core Problem, "Social entitlement or Government Intervention" IS.

2008-07-29T08:21:59Z

Housing still unaffordable



Subject:	Copyright Infringement

Message:	Ed, You need to remove my Inman News column from your blog immediately. This column is protected by U.S. Copyright law and you do not have permission to reprint it in this fashion.

My dear:

Okay, as requested, I removed the entire quote of your words in Inman column from my blog.

Please accept my apology if my use of your article have you felt infringed and unhappy, even I had honestly tried to omit some parts of your article to make mine not qualified as a reprint.

In case that you are still uncomfortable with my new version, please let me know how I can improve my quotation. No offense, please.

**** **** ****

Earlier this year, "The State of the Nation's Housing 2008," a report, was published by Harvard University's Joint Center for Housing Studies.

In the report, it addressed the biggest issue we are facing is housing affordibilty or credit crunch:

"From 2001-06, the number of severely burdened households alone surged by almost 4 million. Because of the unprecedented run-up in house prices and lack of real income growth, over half of this increase was among homeowners."

"For homeowners earning more than the median income, the likelihood of being housing cost burdened nearly doubled between 2001 and 2006."

"Despite the alarming affordability problems, housing assistance remains a small and shrinking share of the federal budget."

"Thus far, there has been little national outcry about the fact that growing numbers of low- and middle-income families are spending half or more of their incomes on housing, ... -- or, worse yet, ... many veterans has also failed to rally a groundswell of support to tackle these urgent issues."

******** ******** *********

Good point at one side. However, there are always two sides of a coin. Certainly, I did not buy the viewpoints of Marcie or those scholars at Harvard University. As the Inman editor claimed: "If you don't like the sound of that, what's your solution?" I have my response expressed earlier in the Inman's column and here as follows:

If you can turn around and look at the other side on the current housing downturn, I am sure, it is the best time to make American housing very "affordable" for an investor with charity mind.

There is a saying that "my loss is your gain." Yes, it is certainly a loss of a banker or financial big guys. But who will be benefited by the crisis?

Yes, by mortgage contraction, nowadays all the financial is expected to lose about 10 trillion dollar to lend; and ppl are lacking of purchasing (or more precisely "borrowing" power) to make their "wants" become a valid economic "needs."

But, with more creative minds, we can help those less fortune have their American dreams come true. Certainly a lot of bankers, such as Indymac's Mr. Perry, are just very conservative to follow their "book," there is no flexibility to overcome the code or hardship they created. Even I looked at the so-called "housing rescue bill", hardly I can see any "rescue" or effective tools for the average Joe or low income families, except the $7,500 first time house buyer's tax credit.
However, I saw, some ppl have used their vision and knowledge to help move poor folks into their houses, which are definitely classified as very "unaffordable" to others, at lower than their current rent.

Use our own brain with creativity and stand on our toes, don't just follow the stigma set up by the status quo and whining for help as a normal man does. At least, don't look up to those guys at Wall street or DC and put ourselves at the hands of politicians who may not even have the brain able to make "state budget" in time, such as California State.

Cheer up! We can have a good solution for the time being or tomorrow.

* I did accomplish something to make housing "very affordable" to some families in the past 20 days. And now I am working on to have 2-3 more families have their American dreams come true. My escrow papers show that I have a decent (or more correctly, huge) profit while I help move them into my houses (my new purchase I called "bank robbery.") But, forgive me, I really don't want to release the detail, if not necessary, to brag myself here.

Here We Go Again! The Best Time to Make $ in Real Estate?

2008-07-16T11:31:18Z

Bank took this Condo back for $232K, now you can have it for $75K.

Wednesday, July 16, 2008 8:57 AM From: "Et" exxxxxx@yahoo.com To: "m"M@XXXbank.com

My dear XXXXX,

This is a REO property in California, close to ocean. The city is a nice and safe place to live, with 5 percent of African American, 4% of Asian residents. For your reference, enclosed herewith is the city's data web link: http://www.city-data.com/

The subject property was sold for $390K, its peak price on May 19, 2006. It was forclosed for $ 232,000 in August 2007. However, Zillow.com has a recent estimate of $292,500.

Now, you can have it for less than $ 75,000, that means you pay 20 cents for a dollar.

Two pennies for your thoughts.

The subject Property:

This Condominium has 4 bedrooms, 2 full bathrooms and approximately 1320 sqft.

XXXX MXXXX Ave., XXXXXX, CA

4 beds, 2.0 baths, 1,320 sq ft

Recently Sold: $232,000

Zestimate: $292,500
30-day change: -$20,000
Value Range: $184,275 - $298,350
Last updated: 07/14/2008

Sales History

Sale History & Tax Info
Sale History
08/16/2007:	$232,000 *
05/19/2006:	$389,000
03/24/1994:	$112,000
No other sale data is available

Market Value Change

II. Currently local listings in the same condo complex:

(A) New this week! $98,500

XXXX N MAXXXXA AV #A

2 Bed, 1.5 Bath
960 Sq. Ft.
Estimated Payment:
$480 Per Month*

(B) XXXX N MaXXXXa Ave UNIT F, XXXXX,

3 beds, 2.0 baths, 1320 sq ft

For Sale: $365,000

Listing partner provided image

XXXXX MaXXXra Avenue, XXXXXX, CA

Seller Facts:

Condo
3 beds
2.0 bath
1320 sqft

Seller's Description

Make this home yours today! This home offers you a great floorplan with inside laundry and a full bathroom downstairs. There is lots of room for storage and is in immaculate condition.

Part II:

Bank took this SFR back for $242K in other city, also very close to pacific ocean. Now you can have it for under $55K.

The following property was foreclosed for $ 242K in October 2007. It was sold for $300K in November 2005. Now you can have it for $ 50K. Today, do you like to pay a price lower than 10 years ago? Think you are lucky to get 85% off its peak price in 2006? You only pay 15 cent on a dollar of its high price. Gee, can't really believe California housing price is going down in terms of dollars in 10 years?

Address: 1x3 XXth St., XXXXXXXXX, CA

Recent comparable sales

Sold 10/12/2007: $330,000
1xxx N El Cxxxxxxo Ave
Sold 05/01/2008: $185,500
8xx Oxxxxy Dr
Sold 05/02/2008: $280,000
4xx0 N xxxth St
Sold 05/30/2008: $152,500
5xx9 Cxxxxxr Ave

123 S 6th St XXXXXXXXX, CA 9XXXX

Public Facts:

Single family
3 beds
1.0 bath
1,019 sqft
Lot 7,405 sqft
Built in 1935

Recently Sold: $242,366

Zestimate Information

Zestimate: $225,000
30-day change: $1,500
Value Range: $155,250 - $252,000
Last updated: 07/14/2008

Sales History



10/30/2007:	$242,366 *
11/17/2005:	$309,000
11/30/2000:	$78,500
No other sale data is available

A Landlord-Tenant Mess During Foreclosure

2008-07-09T10:53:02Z

Question:

I seem to read a lot about what the Landlord can do as far as a bad tenant is concerned but I think that we should also be rating the Landlords themselves. ... We are being told to move by our landlord who's home is in foreclosure and he wants us to move within his 3 week period. He has chossen to move before the foreclosure sale in September and he wants to take all of the appliances in my unit when he leaves. He was so upset last night, because I had not yet found a place, that he picked up and threw my scooter against my door and broke the gas tank and other areas on. He is out of control and I don't know what to do about it. Any words of wisdom. I haven't recieved any eviction notice or anything. He just says that I have to be out by July 17th. Thanks.

07/08/2008 10:14 PM

by Dan Hullum

To Dan:

Your landlord does NOT have any legal right to do that sort of things. He or She has to follow all the legal landlord-tenant regulations in your state. You can go to the regulatory agency and file in a complaint against your landlord for the damage and/ or punitive judgement. Right at the time it took place for the landlord to threw your stuff, you might be able to call a police to arrest him or her for public nuisance or personal threat. But, it is too late now. Next time it happens again, just call 911 for your life may be in danger.

From legal perspectives, right at the instant the foreclosure is completed and a title to the property is deeded and recorded to a new owner/ banker, your landlord lost everything in the real property. Before that point of time, it is ALL legal for the owner/ landlord to take anything built-in that piece of property. That's right our laws do not make it illegal for an owner destroy or do anything about the belongings he/ she owns in the property. After that, he or she may be liable for the damage he/ she makes (In practice, hardly a banker will go after an owner). That's why your landlord wants to take possession of all the movable stuff out of the apartment.

However, you're a tenant of his, you have your right to use all the appliance provided in the unit as agreed until your lease is terminated or expired. If he takes any appliance away from your apartment, he is very possible to breach the lease, a legal contract between you and him, and make an infringement on your enjoyment. Please check with your local attorney for possible claims of damage and/ or punitive penality against your landlord.

As I know, landlord-tenant law or regulations are still binding on your relationship until the landlord lost his/ her right to the said property, that is the foreclosure is completed. Accordingly, your lease is deemed to be null and void at that instant, upon foreclosure is done. However, anytime prior to the foreclosure is completed, your lease is still effective and binding on both you and your landlord. Your landlord has to respect your privacy and leasing agreement. A police should be able to stop him from doing crazy and illegal deeds.

Unless your lease or other written agreement provides differently , your landlord has no right to order you to move out of the apartment any time sooner than the foreclosure process is fully completed, such as someday in September, if that is the day the foreclosure takes place you said. His request of July 17th is absurd and has no legal ground, certainly out of the question.

Also, after that foreclosure date, your landlord absolutely has NO ANY right to tell you what to do (He or she has nothing to do with the property. The new owner/ banker is the only person you have to listen to. You may be able to get a good compensation offer, such as a surrender key reward or a new lease. (Who knows? Usually a conservative will play it safe to say the foreclosure is not perfectly completed until all the occupants are out of the property. I don't think so. Even it is, we have a way to get around it legally.) For now, all your landlord wants, concerns and tries to accomplish is to take as much personal assets with him/ her as possible, even doing things illegally and recklessly.

If you don't know when the foreclosure will happen, ask local real estate agents for help. They should be able to give you general information on that. Or you can just simply go to your city hall to check the foreclosure posts in the hall or county public record administration to find it out.

Good luck!

Can You Buy This Californian 1989 Half Million House For $150K?

2008-07-08T16:18:50Z

Public Facts:

Single family
4 beds
3.0 bath
2,171 sqft
Lot 8,000 sqft
Built in 1989

Zestimate Information

Zestimate: $545,000
30-day change: -$13,000
Value Range: $463,250 - $577,700
Last updated: 07/07/2008

Market Value Change

* The navy blue line is for the value of this property and the light blue one is for the Zip trend.

Legend

July 8, 2008

Dear XXXXX:

I was given a piece of information. This almost 2200 sqft house was foreclosed for $468,948.00 last year. It has 4 bedroom and 3 bathroom on a 8,000 sqft lot. And it can be mine for less than $150K if I act quickly to get it.

After repair or improvements if needed, it shall be easily sold for $300,000.00 at least. (From the government map, it is located in the best area priced between 300k-360k in the year 2000).

I am willing to give you a trust deed bearing 12% interest against the said property if you are willing to put up $90,000 and want a high-yield return so that you can get $900.00 a interest only monthly payment for 2 years, isn't it better than your bank has given to you?

Well, what you think?

Also, last July 4, I sold my 4BR, 2.5BA 2016 sqft manufactured home for $75,000.00 with a 0.5 acre lot.

The deal is: The buyer, a general contractor who is looking a house to host his crew and family, puts in 14 improvements of $7,000.00, valued at far bellow market estimate, and pay additional cash of $3,000.00 to execute the land contract (Title is still belonging to me until the unpaid balance of $65,000 is paid.) So, the down payment is $10,000 and I carry back of $65,000.00.

The seller financing is as follows:

1. loan amount: $65,000.

2. Interest rate: 12.75%

3. Amortization schedule: Working with a 20 year amortization plan, the monthly payment is $750.00. There is a balloon payment in 10 years. In July 2018, when the loan is due, the buyer shall pay me the unpaid balance of $50,729.00 +/-.

Looking for a yearly profit return of 10%, this note has its current cash flow present value of more than $88K, at this moment. please let me know if you are interested in buying the installment note.

Foreclosure Is Good Stuff for a Market, Isn't It, Marissa?

2008-05-09T19:04:11Z

A Funny World (25): God gives you a chance to stand up again

Lucrative Grim Repo Man is Product of Economic Recession
By Marissa Blaszko
Staff Writer

**** **** ****

My dear Marissa:

Listening to what you said: "I don't have any idea how you managed to misinterpret that article so badly, never mind what inspired you to post it online... "

Your words made me so sad and wondering what I did. Sorry, at the first, I don't have any clue how you managed to misinterpret my article so badly too, never mind what inspired you to reply here 2 days ago.

I don't even know what article you are talking about and I quoted from you, let alone where I misinterpreted! (now I know you are probably a college student? I was there fully with poetic justice in my mind 35 years ago.)

Yes, I fully understand the rich get richer in our society. In just 13 years, Warren Buffet's wealth grows from $ 9 billion to $64 billion. That's 7 times of growth.

How many of my fellow citizen have a saving or checking balance in their bank account. Don't tell me that I don't know that. I have a friend who is a family doctor and was a city Mayor of 100,000+ population. He has to ask his bankers to "hold" his check for one more day "un-cashed" almost every week. How much is the payable amount of his check? You don't want to hear and you don't believe it. Those top 100 mutual fund managers earned at least $ 1 billion last year. The earning power of their minute is the full year of an average American citizen, period.

Last week, I read a report of the 3rd richest woman in the world. She is spending $2 billion to build a 27 story home with 400,000 sqft in India. I wish someone being so rich could spend that money to build affordable housing project for the poor in that country with 80% poor population. But ..... it is just my dream she is not going to buy, even letting me use just one tenth percent of it. Please refer to my article to see my real hot and "sweet" heart: A Funny World (17): Your Tent City? Or My Tear City?

How can an average guy increase his net worth 7 times in the same period? Never mind it is $ 55 billion increase.

It is surely not going to happen to you, me or an average Joe. While the main street has been suffered, I saw those big Wall street big cats enjoyed a huge retirement fund, even more annual bonus. What can you and I do? Did B. B. turn his back to you and listen to those financial gurus for advice to cure the credit crunch, say, to "inflate" the housing price politically?

I am just a small potato. I don't want to be a hero or rebel to complain, reform or challenge while facing the huge vested interest or arrogrant politicians. Except to cheer my poor folks up enough to cope with the reality as "the fittest survival" as Darwin said, , what you expect me to do? Are you telling me that you can change the existing systems just by a piece of article of yours as I used to believe as a college boy?

Comm'on, give me a break. A dream do come true, but a lot of them disappear "unrealized".

Tell you the truth, I felt that I could do something for my poor folks when I set up "APFE" group at AR. I wrote so many articles daily in the past. But lately I have felt "gutless," even don't bother to check the site for a week. Why? you tell me.

Everybody has his way of interpretation or vision toward the world, based on his personal frame of reference, when he sees something. I do have a different perspective from your points, but I have no idea that I would make you felt "so badly"? My dear Marissa, tell me where I missed it, as opposed to your original article, please!

* Since you unlink your reply above, I have no way to check what you are talking about. But please do me a favor. It is not polite to come here, shout out and just leave. It is not a good way to communicate ideas.

** There are always two side stories of a thing. Please look at the other side of coin to see the whole picture. Foreclosure is NOT an Evil. Look at its bright side as a market tool for correction, isn't it great? Sometimes, it is the ONLY resolution to cure a problem property in normal market. It is just a effect reflection of our deed, not a cause to our pain. For your reference, I am enclosing here the following report made by Schahrzad Berkland.

Rent-free homeowners keep economy from stumbling

Posted on Sunday, May 4, 2008 at 09:04PM by Schahrzad Berkland | 2 Comments

This year, 93,000 California homeowners received a Notice of Default, meaning they had not paid their mortgage for at least 3 months. Since last September, 145,000 borrowers have the privilege of living rent-free.

If we assume the average mortgage payment is $1500, and the average borrower lives rent-free for 9 months from stopping a mortgage payment to being booted out of his home after the auction, that is (145K * $ 1500 * 9) = about $ 2 billion. Californians have an extra $ 2 billion to spend, because they don't have a mortgage payment. I wonder how bad our budget situation would be, without this boost! (I didn't even add all those not paying their HOA dues or property taxes, but I've seen $25K and up annual property taxes go unpaid for several years.)

So California alone is adding $ 2 billion in additional spending to the economy, as these "mortgage free" homeowners get to use their mortgage payment on movies, clothes, trips, etc.

No wonder the economy is not turning down as quickly as economists had expected. Every dollar not paid on the mortgage, is a loss on another bank's balance sheet, but a gain to a retailer somewhere. The losses are quietly piling up on the banks' books. Just because there has not been a front-page story about bank losses in a few weeks, does not mean all is well. We have to remember, that each foreclosure reported in the news, is another loss to a bank's balance sheet.

I also realize that banks are hoarding their bank owned properties. I counted 6000 REOs on property tax records last week, but only 2200 listed for sale on the MLS: that leaves about 4000 bank owned homes that are being hidden by the banks.

No wonder our inventory has stood steady below 20,000 homes for a few years now. Sellers who are upside down live rent-free for 9 months instead of going on the market for sale sellers who have equity choose to "stay put" or rent their homes, and banks are hoarding homes to prevent taking losses. All this adds to up to a lot of hidden losses, which will come into the pipeline eventually.

In another trend, we see buyers are rejecting the higher end homes. To all those realtors who tell me their high-end area is not going to decline: please wake up. The losses are in the pipeline. You just have to ask the right questions, and it is obvious. Ask: what is the months supply? Anything over 4 months supply predicts price declines. I don't care if you are in Santa Monica. You are not immune from the laws of affordability, supply and demand, gravity.... Your homes went into the bubble-o-sphere, and bubbles pop.

Please keep coming back for more straight talk on real estate.

Reader Comments (2)

Interesting observation. Some of those "savings" of course reverberate through the economy through bank losses, as you noted. When the banks lose money, it reduces their capital available for lending, which further contributes to the cycle of home price drops. To what extent this offsets the additional money available to delinquent borrowers from not making their mortgage payments would seem quite difficult to ascertain.

Here's an interesting article from American Banker on REOs from the perspective of banks. The article suggests that banks are increasing sales of properties to private equity funds (rather than through the MLS) as well as increasing the number of rental units, both of which would explain at least some of the missing numbers on the MLS.

May 5, 2008 | Andreas

Very interesting....I thought that banks had to move their non performing assets (REOs) off their books. Perhaps they are starting off balance sheet vehicles for this purpose. I believe the private equity sales. I've been told by at least 3 people, that hedge funds are buying up large shares of properties. I imagine they would rent them out. Has anyone seen a large increase in rental property listings on Craigslist?

May 6, 2008 | Schahrzad Berkland

Doing business, go to the basic bottom line.

2008-05-06T10:37:26Z

New site crunches numbers for realty investors

Krunching.com combines MLS info with tools

By Glenn Roberts Jr., Tuesday, May 6, 2008.

Inman News

Screenshot of Krunching.com

Krunching.com, a Web site that launched this week, combines real estate information from multiple listing services with digital tools that allow investors to crunch numbers on properties.

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Brian Fudge, Krunching founder and a real estate investor who formerly worked for a video-compression technology company, said he decided to marry his own interest in technology and real estate investing because good tech tools have been lacking for investors.

"The voice that is really lacking is one of technology," he said. "This could be easier if you supply databases to it and information architecture."

While investment gurus often dive into numbers to get a sense for market conditions and investment opportunities, "I don't see the guy who is developing products to help that customer base," he said.

After working 12-hour days in the tech industry on an assignment in China, Fudge said he got fed up and stepped out. He spent about six months driving around the country in an RV.

During this period he was researching where to buy real estate and the Krunching concept began to mature. "I was spending more time on my laptop, building and coding," he said.

Krunching, which has some free data tools but requires a subscription (a monthly subscription costs $39.95) to access its more advanced features, taps into about 11 data feeds from MLSs in California, and also has a range of property records that contain details about loans and financing. The property records date back three years.

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In addition to pricing trends and other trend information, such as "market heat," "median inventory" and rental comparables, the site provides projections about cash flow on individual properties based on a range of factors.

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Comparables include active for-sale properties, recently sold comparables and rental comparables.

While the real estate market is still reeling in many market areas, Fudge said the climate is ripe for an investment-based real estate site.

"It seems like we couldn't have picked a better time to come into this marketplace. There are properties in Los Angeles where the rents exceed what you need to expend on mortgages," he said.

"When that starts happening, the investor base is supporting prices and now the bottom's not dropping out anymore."

Fudge said that there are plans to expand the company into other states.

PropertyShark.com, another site that caters to real estate investors, features a range of properties including commercial buildings. And some Web sites, such as Foreclosure.com or ForeclosureRadar.com, cater to real estate investors who focus on foreclosure properties.

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Great! So many websites have poped out in this Spring.

Really great? NO!

It seems to me that All of them missed the point as those fancy stuff created by a Ivy's MBA boy.

Yes, so many valued added creation are added into Cyberspace. They are sure to keep us easier and busier. But they are just as Don Eichler said in his article "Tell me why" in my "American Poor Folk's Egold" group, not giving out the most important information.

After I checked so many websites, I am so disappointed at them. As I memtioned earlier, I believe NAR's realtor.com has the design so worse that I wish I could not log onto it. However, I have no choice, but go back to be with NAR's site.

Why?

For example, I checked Cyberhomes.com yesterday. I found there are so many listings I am so familiar with. They are at least 2 month old. Some are sold, some have listing agents changed. In addition to that, a lot of them carry wrong listing price. Even they are reduced from $389K to $345K or $289K to 247K, the website still tells you the old listing price.

If a property is no longer available, what's good for us to spend time to study it by using all the fancy device? If we are mis-fed with listing prices, it is a big setback from the starting negotiation point. Here the bottom line is reliability or trustworthiness.

I am so sick to be feed up with wrong listings or listing price. I am not going to the mode of "no sense or feeling of the market" as Prof. Lestor Thurow explained in his observation on the defects of free market mechanism as a tourist's "losing contact of market."

Forget it, I have to check NAR's Realtor.com daily, even I hate it.