Don't you wanta know who has the lousy IndyMac foreclosure loans? I do.

I'm betting that a lot of foreclosure homes will be put into a "waiting" period...and that the owners or squatters (seems like lots of vacant homes in Florida and Ca) will have a much longer "free" period.

Now, I also think that we'll see mergers with the backing of the Fed. Washington Mutual, Citigroup and all those fearless lenders who are still around will be "asked" to merge to guarantee the safety of the markets.

This is looking somewhat like 1990-1991 Long Term Capitol Mgmt fiasco, which also took many banks down with them. Seems like we never learn. Or are we (well bankers, lenders, title companies and maybe some real estate agents) too greedy?

I think that I wrote many months ago that in my market the switch occurred April, 2006...some body turned off the power! We're feeling it now big-time. Imagine doing as many rentals as sales! My broker told me that we're all doing rentals and I suspect that we'll continue for another two or even three years. No fun, that.

Now, why should we be aware of what's going on? Well, firstly, so that we can prepare and execute our business plan...with few surprizes.

Secondly, so that we can advise our buyers/sellers. I mean do you want to do a loan with WM? You need to steer the boat thru the icebergs. Start checking out your local credit unions for mortgages...almost anyone can now join a CU...and they do give mortgages. Yup. Little known fact. Talk with some of your local, smaller banks...that hold their own mortgages. You goin' need them.

Thirdly, knowledge is power! Learn about alternative financing. Have you ever had a seller (who has no mortgage) hold paper? It's a good way to structure a sale...gives the seller money monthly and lets the buyer get in. Articles of agreement; contract sale; rent with option...lots of ways to do things. BUT...and you knew there was a but...learn how...read...talk to an attorney...hey, take an attorney out to lunch and ask him/her how this works.

In Illinois, an attorney needs to do this contract. Some attorneys know how...many do not as they're not old enough to remember bad markets. All in all, know that eventually, this too will pass.

In the early 1980's...it took 4 years. We went from 13% interest rates up to 18%...then back down to 12% and the market took off. But, it was FOUR YEARS. And, only the strong survive.