david saks: The Inquisition: Or Has the Blog Become the Flog ? - 03/18/08 09:12 AM
Could a blog become a "flog"?
Many Real Estate Blogs are becoming on-line confessionals for heavily mortgaged investors, homeowners and agents tottering bankruptcy, foreclosure and financial ruin, facing quit-claim and court ordered dissolution of property from divorce proceedings or other litigation. Miles and miles of pseudo-intellectual banter, espoused in form through indiscriminate tongue-in-cheek contributors, most sounding like second year undergraduates, are taking up the cause, ideology, practice, and method of someone else and using it as their own to project a semblance of creative prowess divested in kind through the need to overcome failure. Worse, they sound like … (2 comments)

david saks: Biggest Losers - 03/18/08 07:10 AM
Why is it that the biggest losers are the categories of homes that start at around 160k (and up) while median home price (and below) sales levels are accelerating?  How can anyone assert that this is a "short term anomaly" while the market is still tumbling and hybrid loans and pay option arms are about to reset?
The biggest gainers in our business, so it seems, today, at this moment, are low priced properties, which might be an indication of the strength of the residential purchasing activity of investors and home buyers who are taking advantage of the opportunities in … (0 comments)

david saks: Low Price Could Mean High Gain - 03/18/08 06:38 AM
Here's some '07 vs '06 Memphis data under the microscope. Forget the phrase "local market".
With the recent decline in sales fiqures there are some significant increases in the level of sales of lower priced properties.
Here are some Memphis numbers:
Home Price----'06 vs'07 sold  YTD Change===========================
0-19k              64v119        +86%20-29k            51v43          -16%30-39k            43v54          +26%40-49k            38v32           -16%50-59k            37v49          +32%60-69k            59v67          +14%70-79k            58v63          +9%0-89k              76v39           -47%0-99k              49v45            -8%100-119k        111v93           -16%120-139k        123v118         -4%140-159k         5v112          +49%160-179k        94v83            -12%180-199k        78v67            -14%200-249k       116v97           -16%250-299k       110v90           -18%300-399k        95v75            -21%400-499k        40v29            -28%500-749k        29v12            -59%750-999k         8v3               -63%1m-& Up          9v2               -78%
data: Memphis Area Association of Realtors
The biggest losers are the categories that start at 160k and up. Median home price levels are down … (0 comments)

david saks: Is the Cliche':"Buying a Home is the Best Investment You Can Make" Still True? - 03/18/08 04:41 AM
Does any assertion that "...buying a home continues to be one of the best investments a consumer can make" reflect the dismal implications of today's market? Many believe that it is, if you can crush the existing world of residential financing with good credit. How do you feel about this comment when you hear it?
There is so much yet to be seen, and many conditions, both good and bad, moving the direction of the market. Stay wide eyed !

david saks: Bear Claws - 03/17/08 07:05 PM
I remember some bad news from Bear Stearns in July of last year. The Bear told their clients that two of their funds were close to being worth nothing. Then the big bad Bear roared in August and raised it's deadly claws, blocked withdrawals from these investment funds, and sold off the rest of the imploded funds in the Cayman Islands or elsewhere. The poor Bear was hungry. Now let's ask ourselves, just what did these funds aim to support...? You guessed it...subprime mortgages and mortgage backed securities. The Bear bank had to put up almost two billion dollars in rescue financing while … (3 comments)

david saks: "You have sum splainin' to do, Mr. Bernanke !" - 03/17/08 01:23 PM
I penned this six years ago. Has anything really changed.....?   The trap has sprung. The Fed keeps lowering the lending rate.
Has it signed a death sentence for the economy?
For cash-strapped homeowners, their worst nightmare is about to happen.
They're going to refinance their mortgages at bargain rates again, thanks to the Fed's beneficence, and think that they can cut their payments in half.
Low documentation and low downpayment scams are going to resurface their ugly heads for new borrowers.
Those who take the bait are in for a nasty surprise.
While many Americans have started to worry about … (17 comments)

david saks: Cooking Bar-B-Q or The Books ? - 03/17/08 12:47 PM
Many of our homeowners whose residences are in foreclosure have been subjected to fraud, deception and unfair dealing by home equity purchasers, savings banks, commercial banks, mortgage companies, credit unions, savings and loan associations, mortgage brokers, realtors, appraisers, closing attorneys and other unprincipled in the housing financing sector working under deceitful pretenses. The recent rapid escalation of home values, particularly in urban areas, has resulted in a significant increase in home equities, which are usually the greatest financial asset held by homeowners in this state or any other state. Homes are being foreclosed in Memphis at a rate unprecedented in the … (0 comments)

david saks: Who Is David Saks & What Does He Think About The Business & Other Stuff - 03/17/08 05:00 AM
I'm a broker, and play the piano.  Unlike Nero, who fiddled when Rome burned, I'm commandeering the fire truck and only have a bucket of water. Although I devote most of my energy to computer and internet related issues. I've been Ray Bouder Real Estate Schools web master for five years, and have built many webpages for realtors and other businesses over the last ten years, most pro bono. My father was a real estate agent with Marx and Bensdorf when I came into the world. My great uncle, Frank Romeo, was the president of the Memphis Homebuilders Association. The profession has always … (4 comments)

david saks: Shelter from Harm - 03/16/08 04:20 PM
I had a fellow Realtor® comment to me: "The one thing the home ownership market does not need is government intervention".
I respectfully disagree due to the fact that regulation of financing is a necessity in view of the many callous and thoughtless misrepresentations that have occurred at the hands of unscrupulous and greed driven lending institutions. When lenders exceed qualifying mortgage caps for their borrowers they knowingly place their clients at the risk of foreclosure. Realistic cap rates should remain in place in order to make financing more realistic, not just for the borrower, but to lower the risk … (12 comments)

david saks: Property Taxes in Memphis and Shelby County - 03/16/08 03:18 PM
Property Taxpayers aren't facing a "double whammy"; they're facing a "triple whammy". The mayor's depressing prediction that an increase in the property tax rate next year is "almost inescapable" disregards the fact that 2009 is also a reassessment year for the Shelby County Assessor of Property. Along with the higher property taxes, that this mayor is proposing, comes the additional nauseating burden that property taxpayers will face an artificial increase in values of their property once again, both commercial and residential, increasing the tax liability even more.
From 2002 to 2004, the nation's median price of a single-family home … (16 comments)

Most real estate fraud-related articles and Department of Justice Press Releases published here are taken from the public record, which normally include press releases and court documents related to each entry and case. Any other type of record, i.e. newspaper reports, are only published after consent has been obtained from the original publisher. Nothing will be published that has not been verified via the public record or consent provided.The use of the names or initials of the Federal Bureau of Investigation, the Drug Enforcement Administration, and the United States Marshals Service is governed by 18 U.S.C. sec. 709, which prohibits their unauthorized use in a manner calculated to convey the impression that such use is approved, endorsed, or authorized by that component, unless written permission has been received from the head of the respective component. Where initials are found within this blog site they are not used in a manner calculated to convey the impression that such use is approved, endorsed or authorized by that component. Please see the Department of Justice Legal Policies at:http://www.justice.gov/legalpoliciesPlease contact David with any questions.
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