Foreclosures: Stocks Lose Steam on Subprime Worries

AP
Stocks Lose Steam on Subprime Worries
Tuesday July 31, 2:35 pm ET
By Madlen Read, AP Business Writer

Wall Street Rally Fizzles As American Home Mortgage Problems Revive Subprime Anxiety

NEW YORK (AP) -- Renewed concerns about soured home loans and the financial solvency of some lenders shot down a continued recovery rally on Wall Street Tuesday, causing stocks to pare sharp gains.

Earlier in the session, stocks had soared following strong earnings from General Motors Corp. and Sun Microsystems Inc. and amid somewhat mixed economic data.

But stocks pulled back after American Home Mortgage Investment Corp. said Tuesday afternoon it hasn't been able to tap into its credit lines and has hired advisers to consider its options, including the sale of its assets. Wall Street has been concerned about tightening credit after some loans made to borrowers with poor credit have gone bad, and that anxiety contributed to the market's big plunge last week.

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This further illustrates my point that our economy along with the stock market is nothing more then smoke and mirrors. Yesterday all the fear was out of the market, CNBC had all the regulars on saying happy days are here again because of corporate profits; indeed they are rising, but not due to American investing, but rather foreign investing! Which by the way does nothing to help are national or local economy. Remember, we are part of a global economy; therefore a strong stock market is a mute issue with a weak dollar. How weak? In 2002 the Euro was at .82, today 1.3688- in 5 years the dollar has devalued by approximately 38% !!!
For the first time , in my life time at least, Canadians are vacationing in large numbers here in the US because they are getting more bang for their buck!

This is just a taste of what is to come my friends! Tell me, where are these companies going to turn to? This is definitely going to effect every aspect of our economy and the only ones that will come out on the right side of the stick is savvy investors. Now more than ever is the time for us as investors to learn everything we can on foreclosures and the short sale process.

Stay tuned for helpful strategies and tips.

Here We Go!

Hello All:

Just thought I would let you know what's going on since my last post. It seems the people over at Dave Ramsey's organization didn't like my post! I don't think I was bashing anyone, rather just writing the truth, in fact I did include that Ramsey apologized for the error and reimbursed the papers for payment.

Since the posting I have had several e-mails from the Ramsey organization requesting that I allow then to post to my blog a retort. I sent back a e-mail asking if what I had reported was true, they said yes, but it wasn't Dave, but rather an ex employee who had been guilty of the error.
Believe me I don't want to make a big deal out of this, but I think this is a good example of damage control. I wanted to be fair and balanced, so I sent 2 e-mails asking them to either call me or I would call them to find out their side and if I felt their explanation was valid I would post it for all to see.

Instead I received this e-mail:

James, I don't need/want/have time to carry on a conversation with you
on this issue. I simply asked if you would make your comments open to
all people so I could leave a comment of my own. If you don't want to
do that, that's fine, but please don't try to force a conversation with
me after I told you I would only discuss it publicly on your blog.

Chris Thomas
Director of National Advertising

What's the saying if it looks like a duck, walks like a duck etc.....

I will not be silent on issues I believe to be factual and truthful; besides this organization claims to be a "Christian" one, which I believe needs to hold a higher standard then any other organization.

Be well.

Who Can You Trust?

This has been a crusade of mine for several years; the abuse of the information and financial advice giving industry. We have all seen so called experts on television or radio peddling their systems and advice, but what qualifies them to be experts? In the real estate industry most are nothing more than information pushers who have not done a real estate deal in 20 years, but are going to tell you how to do it.

Even in the financial advice world, many so called experts have been placed under the microscope, and found that they are not what they seem, case in point Dave Ramsey ( who is a nationally known talk radio host) ...

In 2004 Dave Ramsey's column was dropped from The Tennessean and four other newspapers owned by Gannett, Co. after it was discovered that the identities of those seeking help were falsified in several of his columns. Ramsey accepted responsibility for the error and offered refunds to the newspapers affected by the error.

Believe me, I don't like to throw stones, but these so called experts are the same individuals throwing stones at everyone else, claiming they are the only ones with true in site.

That being said, what should you look for when taking advice about real estate or financial matters?

1. Make sure the individual is active in the industry that he or she is giving advice.
2. Make sure you can personally speak with them; if you can't don't do business with them or take their advice.

Hope this helps in your quest for top quality information and advice.

To your success.

Foreclosure: Preparing to Make calls to Sellers

First you have to go through your newspapers, preferably 2 weeks old. Start with the houses for sale by owner, cross out any by Realtors (at least for now). Next go through the houses for rent. Go up on line to the major FSBO sites and pull down homes in your area. Remember, with some of the changes these sites have made, to save time, just take down the telephone number.

Now you are ready to organize your calling. Go through the above lists, be sure you don't have any duplications.

Check your database to be sure there are no duplications. Now you are ready to call. Get your yellow pad and make up your headings of: telephone number, type of property, price, and notes. Pull out your telephone calling script and start calling. If you get an answering machine, leave your message script for the appropriate type of property. When you get to speak to the seller, ask all of the questions in the script. Remember, you want to build rapport with the seller.
In addition, by using your script you will get all your questions answered before you leave your home office to view the property. If not, you don't leave your home office. Remember, your time, knowledge and energy are valuable commodities, you will not squander them.

Short Sales: Special Webinar on Short Sales

Hello All:

Just a quick reminder about tomorrow nights webinar on Short Sales; lines are filling up fast! We are down to 25 lines available - so don't delay in signing up. I promise you that you marketing efforts will increase by 40% with just one of the secrets I will reveal!

I will be sharing real world short sale strategies and techniques such as :

* Getting past the "Gate Keeper".

* Getting the bank to say Yes!

* What needs to be in your short sale package to overcome the BPO.

and much more...

Below you will find the sign up information, register Now! Limited Lines Available...

I hope to meet you on line.

To your success,

James Gage

Thursday, July 26, 2007 - Special Webinar with Foreclosure.com

Time: 9:00PM EST

Topic: The Art of The Short Sale

Where : CLICK HERE TO REGISTER

* Only 25 lines remaining- Register NOW !

Foreclosures: More Bad News!

Hello All:

As I predicted over a year ago, this housing meltdown will spill over into the main stream America. This is why you should look into becoming a short term real estate investor. Look what the media and mortgage institutions are finally realizing; so with that being said, how long will it take to hit a bottom? My prediction is 24-28 months. I guess I should place an addendum on that statement; as long as we don't have another 911, sustain a flu pandemic or if the dollar is not devalued even further against foreign currencies, then a rebound should happen.

Be well and may all your deals be profitable.

James Gage
Mortgage Fears
by Yahoo! Finance and The Week
Countrywide Financial says that the subprime mortgage has spread to borrowers with good credit.

Real Estate:The House has passed the Section 8 Voucher Reform

Hello All:

James Gage here to inform you on the Washington real estate news.

JULY 18, 2007 -- Washington, D.C. -- The House has passed the Section
8 Voucher Reform Act of 2007 (SEVRA) that will change aspects of the
apartment unit inspection process to result in faster move-in of new
residents.

The National Association of Home Builders (NAHB) said it is "very
pleased" that the bill passed, by an overwhelming bipartisan vote of
383-83. "NAHB has been supportive of efforts to reform the Section 8
voucher program, particularly in areas such as unit inspections," NAHB
stated. The organization said Section 8 reform is one of its highest
priorities for its multifamily members.

The Section 8 Housing Choice Voucher program provides rental subsidies
to approximately two million very-low income households for obtaining
housing in the private market. The program is meant to broaden the
range of housing choices for families seeking affordable housing.

Claudia Kedda, director of multifamily finance at NAHB, said of top
concern to the organization's members is the provision to streamline
the unit inspection process.

The inspection process under existing laws currently requires the
Public Housing Authority (PHA) to inspect a unit when it is vacated
before a new resident using a Section 8 voucher can move in. Problem
is, units can sit empty for weeks while the unit is waiting to be
inspected.

Under the new bill, the unit still has to be inspected before it is
reoccupied, but if there is an issue and it is not life-threatening, a
new tenant can move in. And the PHA pays the owner the rent
retroactive to the date of the lease. Consequently, both the owner can
cut down on the rent lost and the resident can find a home quicker.

The new bill also allows PHAs to inspect units ever other year rather
than every year, Kedda explained. And if the unit has already been
inspected in the past year under another federal program--for example,
under the Low Income Housing Tax Credit or HOME programs--and meets
quality housing standards, then under the legislation an additional
inspection for the Section 8 program is not required, she said.

Other provisions under SEVRA require HUD to translate official HUD
documents commonly used by property managers that are considered
"vital," and to set up an 800 hotline number for oral interpretations.


And the legislation provides for changes to the project-based voucher
program to, according to NAHB, ensure its flexibility as a tool for
preserving or expanding the supply of affordable apartments especially
those with a tight housing market.

NAHB is currently working with the Senate to introduce a companion
bill. The group said it appreciates the leadership of Chairman Frank,
Chairwoman Waters and Ranking Member Biggert, "who worked so hard to
bring the bill to the House floor."

Seems like it's geared towards inspections!

Short Sales: Special Webinar on Short Sales

Hello All:

I'm excited to post my next webinar with the folks at Foreclosure.com. I will be sharing real world short sale strategies and techniques such as :

* Getting past the "Gate Keeper".

* Getting the bank to say Yes!

* What needs to be in your short sale package to overcome the BPO.

and much more...

Below you will find the sign up information, register Now! Limited Lines Available...

I hope to meet you on line.

To your success,

James Gage

Thursday, July 26, 2007 - Special Webinar with Foreclosure.com

Time: 9:00PM EST

Topic: The Art of The Short Sale

Where : CLICK HERE TO REGISTER

* Only 200 lines available- Register NOW !

Lease Options: Index for New Home Market Sentiment Sinks to Lowest Level in More Than 16 Years

Hello All:

Just another example of what I have been saying for the last 12 months - it's here! Now is the time to start investing in lease options, what are you waiting for? Give me a call anytime.

To your success,

James Gage

AP
New Home Sentiment Index Sinks
Tuesday July 17, 6:36 pm ET

AP Business Writer

Index for New Home Market Sentiment Sinks to Lowest Level in More Than 16 Years, Group Says

WASHINGTON (AP) -- A key measure of industry sentiment on the U.S. market for new homes fell to its lowest point in more than 16 years, a trade group said Tuesday, as builders struggled with rising inventories of unsold houses a

The National Association of Home Builders/Wells Fargo housing market index, which tracks builders' perceptions of current market conditions and expectations for home sales over the next six months, fell to 24 this month, the lowest reading since January 1991, the NAHB said.

cross the country.

Is Foreclosure & Short Sale Regulation Coming to Your State?

I have been Fielding a lot of phone calls from my office about the rash of state mandatory regulation that have come down the pike recently concerning foreclosures and short sales. I have attached an article of the recent 90 day stay that AG of Massachusetts just recently put in place.

Massachusetts, like many other states have placed stays or regulations in place to protect the home owner from predatory lending. This does not effect the investor or should I say the ethical investor; risky bail out schemes and equity stripping is what these governmental organizations are targeting. Another no no is getting the the deed at the kitchen table, if your worried about the owner disappearing, have the deed held in escrow by an attorney!

As you can plainly see this will not effect us as investors as long as you cross your ts and dot your I (s).

ATTORNEY GENERAL MARTHA COAKLEY ANNOUNCES MULTI-FACETED PLAN TO ADDRESS MASSACHUSETTS’ FORECLOSURE CRISIS

PLAN INCLUDES EMERGENCY REGULATIONS PROHIBITING FORECLOSURE RESCUE SCHEMES, POSSIBLE AMENDMENTS TO MORTGAGE BROKER AND LENDER REGULATIONS; AND A PRO BONO LAWYERS GROUP TO ASSIST FORECLOSURE VICTIMS

June 1, 2007

CONTACT: Emily LaGrassa/Melissa Sherman
(617) 727-2543

BOSTON - Attorney General Martha Coakley has formulated a multi-faceted plan to address the current foreclosure crisis in Massachusetts. The Attorney General’s office has issued emergency regulations under the Consumer Protection Act (Massachusetts General Laws Chapter 93A) to address the problem of so-called foreclosure rescue schemes, which have plagued the Commonwealth amid the current foreclosure crisis. The regulations will go into effect immediately and are valid for 90 days, at which point they may be permanently promulgated after public hearings. The Attorney General’s Office is also considering further amendments to current mortgage broker and mortgage lender regulations which would address widespread unfair and deceptive tactics used by some in the mortgage lending and brokering business, and is soliciting written comments from industry leaders, consumer advocates, and the public. In addition to the emergency regulations and other possible amendments to current regulations, the Attorney General’s Office is in the process of establishing a group of private attorneys who are willing to work pro bono to assist homeowners who are facing foreclosure.

EMERGENCY FORECLOSURE RESCUE REGULATIONS

“Our office has brought cases against several lenders, brokers, and lawyers who have carried out foreclosure rescue schemes, involving several versions of foreclosure rescue transactions. All are rife with fraud, and prey on vulnerable homeowners. These “rescuers” take a bad situation—foreclosure—and make it worse by liquidating any remaining equity in the homes to their own advantage and the homeowners’ detriment,” said Attorney General Coakley. “This practice has become widespread, and a new regulation under our Consumer Protection Act is the best way to quickly and proactively combat this problem and to prevent further harm to distressed homeowners.”

Attorney General Coakley announced emergency regulations, effective immediately, to prohibit unfair and deceptive foreclosure rescue schemes. As foreclosure proceedings have become more prevalent in Massachusetts, the Attorney General’s Office has seen an increase in unfair and deceptive foreclosure rescue transactions in the Commonwealth. These schemes are typically initiated when businesses or professionals claim to assist consumers who are facing foreclosure by convincing them to convey their property to straw purchasers. The straw purchasers then obtain mortgage loans, permitting the individuals facing foreclosure to continue living in their property for a limited time, and promising the individuals that they will be able to later reacquire their homes. In the enforcement matters litigated by the Attorney General, the promises of maintaining home ownership are illusory and homeowners lose their home to the so-called “rescuer.”

The Massachusetts Consumer Protection Act authorizes the Attorney General to promulgate regulations to identify unfair or deceptive conduct that violates the act. The emergency regulation prohibits foreclosure rescue transactions that are carried out for profit. It does not prohibit such transactions if they are not carried out for profit, such as transactions between family members or arranged by a non-profit community or housing organization. The regulation defines a “foreclosure rescue” transaction as a transaction (a) that is designed to avoid or delay foreclosure, and (b) where the homeowner transferring the home maintains a legal or equitable interest in the home, such as a lease interest or right to reacquire the property.

AG SOLICITS COMMENTS ON PROPOSED AMENDMENTS TO MORTGAGE BROKER AND MORTGAGE LENDER REGULATIONS

In addition to these emergency foreclosure rescue regulations, the Attorney General’s Office is also considering the proposal of further regulations aimed at preventing other problematic practices in the mortgage industry, all of which have contributed to the current foreclosure crisis in Massachusetts. During the course of enforcement investigations and litigation, the Attorney General’s Consumer Protection Division has identified several unfair and deceptive practices used by some mortgage brokers and lenders to process or make mortgage loans to Massachusetts borrowers. The problematic practices occur in purchase money mortgage loan transactions, as well as in those where the borrowers are refinancing an existing loan. The practices often result in consumers having mortgage loans they cannot afford, and thus contribute to the rise in foreclosures in the Commonwealth. These practices include:

• Mortgage brokers and lenders inflating the income of borrowers on application forms and misstating the source of the borrowers’ income;

• Mortgage brokers making mortgage loans which are not in the borrowers’ interests;

• Mortgage brokers and lenders processing and making mortgage loans without considering whether the borrowers can repay them;

• Mortgage lenders making mortgage loans which are not suited to the borrowers by evaluating criteria other than credit and bona fide credit qualification criteria; and

• Businesses being assigned predatory loans without allowing the borrowers the means of asserting claims against the assignees.

In order to address these problems, the Attorney General is considering amendments to existing Mortgage Brokers and Mortgage Lenders Regulations. Before doing so, the Attorney General’s Office is soliciting written comments from all interested parties. In particular, the Attorney General’s Office welcomes comments on the following issues:

• Whether the existing regulations should be expanded in scope to apply to purchase money mortgage loans, as well as loans that refinance an existing loan;

• Whether mortgage brokers and lenders should be prohibited from processing or making mortgage loans unless they reasonably believe that the borrower can repay the loan;

• Whether mortgage loans which are processed on a “no documentation” or limited documentation basis should be prohibited or restricted;

• Whether there should be a fiduciary duty standard, or similar standard, on mortgage brokers who arrange mortgage loans for clients;

• Whether lenders should be required to ensure that the loans they are providing to borrowers are suitable for the borrowers;

• Whether there should be assignee liability for all loans, or for certain types of loans, beyond the current standard applying only to “high cost” loans.

Both the Foreclosure Rescue Scheme emergency regulations and the Request for Comments concerning proposed amendments to the Mortgage Brokers and Mortgage Lenders Regulations, including a comment form, are available on the Attorney General’s web site, www.ago.state.ma.us.

The Attorney General’s Office will accept written comments concerning potential amendments to the Mortgage Brokers and Mortgage Lenders Regulations on or before June 28, 2007. Following the comment period, the Attorney General’s Office anticipates that any filing of proposed amendments to the Mortgage Brokers and Lenders Regulations will be followed by public hearings on those proposals.

The Foreclosure Rescue Scheme regulations are effective immediately as emergency regulations, and may remain in effect for 90 days. The Attorney General’s Office anticipates that those regulations also will be promulgated to take permanent effect. That process, including a public hearing, will likely occur during the summer. If homeowners or professionals have questions about the emergency foreclosure rescue regulations, they may call the Attorney General’s Consumer Protection Division during business hours at (617) 727-2200 extension 2574.

Lease Options: More Good News for Lease Option Investors!

Pending Home Sales Near a 6-Year Low

AP -

Pending sales of existing homes dropped to their lowest level in almost six years, a real estate trade group said Tuesday, demonstrating the persistence of the housing slump.

What are you waiting for? Start investing today!