Ron Paul throws the Fed and the GOP under the bus
on CNN

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I support Ron Paul 100%.

Picking between Obama and McCain was picking the best of what was left.

But America doesn't support Ron Paul. Nor will they in his lifetime. The empire is failing, and the people chose to let it happen.

Here's Ron Paul speaking the truth on the Fed, the two parties, and Russia/Georgia among other things. Truth you won't hear from Dems or Reps. Truth you especially won't hear from McCain.

Damn, I wish he'd run as an independent, just to get into the debates. Ron Paul has as much to do with the current GOP as Santa Claus has to do with Islam. I bet he's not even let in the door of the GOP convention next week.

Read The Full Article:
http://housingpanic.blogspot.com/2008/08/ron-paul-throws-fed-and-gop-under-bus.ht
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Large Lot Rambler in Lynnwood for Sale

18401 67th Ave W Lynnwood, WA 98037Status: ActivePrice: $334,950MLS #: 28141116Listing Agent: Teresa RommelCall: (425) 359-2472 - Map it[...]

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http://www.barnettassociates.net/28141116/

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Who is Better for the Real Estate Market: McCain
or Obama

Do you think that John McCain or Barack Obama has better policies for the real estate market?

I’m curious about how folks see the 2 major party presidential handling the real estate marketplace and I’m interested in starting a discussion taking into account, tax policy, monetary policy, and other factors. I don’t want to hear anything about McCain’s 7 houses or Obama’s deal from Rezko (I brought ‘em up so you don’t have to) . . . I want to start an intellectual dialogue based on policy.

Feel free to share your ideas here in the comments, or if you’ve got your own blog, write your thoughts and point to the post so we can discuss. We’ll link to any posts out there that take a serious, and hopefully, non-partisan look at these two gentlemen and their policies affecting the market.

Things to consider: capital gains tax, real estate tax, inflation, interest rates, dollar strength, leanings on regulation, position on Fannie/Freddie and bank bailouts, effects on investors, homeowners, real estate agents, lenders, etc.

I look forward to hearing all of your opinions, and I hope that everyone is mature enough to stick to the topic at hand!

Advertisement: Tennessee Rental Property Memphis, TN Foreclosures For Sale 901-725-6825

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Who is Better for the Real Estate Market: McCain or Obama?

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Vintage Wine

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Vintage Wine -- Moody Blues

Isn't real estate supposed to be like vintage wines that get better with age? Rare vintage wines can get very expensive, and unless they turn to vinegar, their prices do always go up. Well it appears the 2006 vintage homes are all turning to vinegar now because they certainly are not appreciating in value.

Today I want to relay a story to you that was told to me by a real estate developer currently buying property in one of our most blighted California bubble markets. His company is purchasing this particular property from the bank for far less than the original loan amount. Do you remember the residual land value calculations from Land Value 101? This particular property was ready for the construction and sale of houses in 2003. The original prices were $400,000 in this particular market. By 2006, houses were selling for $700,000. When sales volumes plummeted, the builder gave up and let the property go back to the bank. The developer ran a proforma using a $275,000 house price. As you can imagine, this did not leave a large residual land value. The bank took the offer. This developer knows he can build and sell houses profitably for $275,000 in this particular market. If prices increase, he stands to reap a windfall. His only real concern is the competition from the REOs, particularly all the previously built homes in this subdivision he is undercutting by over 50%. He knows he is probably going to cause more walkaways, but prices are what they are, and as long as he can build and sell $275,000 houses, it isn't his problem.

Fortunately, for those living in Irvine, the developer is financially stable, and it is concerned about long-term house prices and probably will not cut prices over 50% to move homes. As we noted with the problems in Columbus Grove, those who are off the Ranch are not so lucky. Today's featured property is another of the bad 2006 vintage properties in Woodbury. This seller is really being hosed by his competition as he owes $184,000 more on his property than his comparable neighbor is asking for sale.

Asking Price: $489,000

Income Requirement: $122,250

Downpayment Needed: $97,800

Monthly Equity Burn: $4,075

Purchase Price: $554,500

Purchase Date: 10/12/2005

Address: 142 Vintage, Irvine, CA 92620

Beds:3Baths:3Sq. Ft.:1,526$/Sq. Ft.:$321Lot Size:-Property Type:CondominiumStyle:MediterraneanYear Built:2005Stories:3+ LevelsFloor:1View:Hills, MountainArea:WoodburyCounty:OrangeMLS#:S529072Source:SoCalMLSStatus:ActiveOn Redfin:133 days Unsold in 90+ days

Beautiful living space in the heart of Woodbury. Enter the outdoorliving area down a walkway that opens into a private courtyard withoutside fireplace where neighbors gather around patio table &chairs. Ground floor entry with bedroom converted into a home officewith built-in. Go upstairs to main level with spacious living room withfireplace & custom built media center. Open plan gourmet kitchenwith granite countertops & island, maple cabinets & stainlesssteel appliances. Top level features the master suite with walk-incloset. The master bath has dual sinks with marble countertops, tubsurround and separate shower enclosure. Community amenities include 5pools, basketball, tennis and volleyball courts. Wonderful, newshopping centers with restaurants. Convenient to 5 freeway and 241 tollroad.

That is a well written description. It is so rare, I thought it necessary to comment on it.

This property was purchased on 10/12/2005 for $554,000. The owners used a $443,000 first mortgage, a $110,700 second mortgage and put $300 down. On 3/21/2007 they refinanced their second for $141,000 pulling out a quick $30,000. Now that prices are dropping and they got all they could out of the property, they see no need to keep paying the big debt, so they are walking away. Does anyone blame them? Does anyone think we won't be seeing a lot more of this?

.

I remember the taste of the vintage wine
From '63 through to '69
And I'm proud of the things we believed in then
If I had the chance I'd go around again

Oh I tell you
We were young and free
Oh I'll tell you
'Cause I was there you see

And I look to the future with open arms
And the songs that flow from my old guitar
And I want to be there when the music plays
And the lights go up on the empty stage

Oh I tell you
Music set me free
Oh I tell you
It sounds so good to me

Vintage Wine -- Moody Blue

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Two Indicted for Bank Fraud, Money Laundering

In the following press release it was announced that a 50-year-old Andover man and a 55-year-old Minnetonka man were both indicted this week in federal court on 21 counts of bank fraud and other charges.Eric R. Krahnke and Michael I. Striker were each charged Aug. 19 in Minneapolis on the 21 counts, as well as one count of conspiracy to commit bank fraud and one count of money laundering.

Their indictment alleges that from March 5, 2003, to Oct. 31, 2003, Krahnke and Striker knowingly and willfully conspired with each other to execute and attempt to execute a scheme to defraud and to obtain moneys, funds, credits, assets, securities and other property from a financial institution by means of false and fraudulent pretenses.

The object of the conspiracy, the indictment alleges, was to defraud Associated Bank and to obtain money in the form of residential real estate loans that generated cash back to Striker, and concealed fees and commissions to Krahnke.

Krahnke was a construction loan officer at Associated Bank, and was also the owner of an independent mortgage brokerage company called Worldwide Mortgage & Investments. Striker was an Associated Bank customer of Krahnke?s, and was the owner of a real estate company called U.S. Equities of Minnesota.

The indictment alleges that Striker submitted at least 21 real estate loan applications to Krahnke, which were processed, accepted and disbursed in the aggregate amount in excess of $4 million. Striker obtained more than $724,000 at closing on the loans.

In connection with the loan applications, Striker submitted false and misleading information that overstated his and U.S. Equities? financial condition. The indictment also alleges that Striker caused to be submitted, and Krahnke knowingly accepted, inflated appraisals for the underlying properties that were above their true market value. The inflated appraisals resulted in higher gross loan amounts, which allowed the defendants to obtain money.

Krahnke, the indictment alleges, manipulated the bank?s internal loan approval process and marked loans as approved when they were not. Krahnke also allowed Striker to receive 100 percent of each loan amount in a single distribution, instead of the standard practice for a construction loan in which the borrower receives installment payments.

Although the loans were represented to be for the purpose of construction financing, Striker, the indictment alleges, did little, if any, of the rehab construction work he said he was going to do, and instead used the funds for payment of other expenses and debts unrelated to the purchased properties, including debts that he owed on other real estate loans.

In the case of many of the loans, the properties were not vacant rehab properties, but rather were homes that financially-distressed homeowners were still living in. The homeowners had conveyed their title to Striker, or the business that Striker was working with, and thought that Striker was helping them to stay in their homes. However, Striker was falsely representing to the bank an intention to rehab and re-sell these properties.

Krahnke received commissions from the bank for originating the loans, but in addition, Striker agreed to pay, and Krahnke received, a broker fee in the amount of three percent of the net loan amount, even though the loan was not originated through a broker. This broker fee was made payable to Striker?s company, Worldwide Mortgage, and was secretly owned by Krahnke.

The indictment also alleges that Striker purchased and gave Krahnke a Rolex-brand watch worth several thousand dollars, which Krahnke knew was in violation of the bank?s code of conduct concerning bribes from a customer.

If convicted, Krahnke and Striker each face a potential maximum penalty of 30 years on each bank fraud count, 30 years on the conspiracy count and 10 years on the money laundering count. All sentences are determined by a federal district court judge.

This case is the result of an investigation by the Internal Revenue Service-Criminal Investigation Division and the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney William J. Otteson.

An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by the defendant. The defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.

Read The Full Article:
http://www.mortgagefraud.org/journal/2008/8/28/two-indicted-for-bank-fraud-money-
laundering.html

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Cumberland County (NC) clan charged in fraud case

In the following press release United States Attorney George E.B. Holding announced that on August 21, 2008, a Federal Grand Jury returned a Criminal Indictment on TERRI J. HART, 45; APRIL HALL, 34; THOMAS WALTER THACKER, JR., 68, all of Fayetteville, North Carolina; and SHIQUANDRA ANN BROOKS, 35, of Hope Mills, North Carolina. All have been charged with conspiracy, in violation of Title 18, United States Code, Section 371, which has a maximum penalty of up to five years imprisonment and/or a $250,000 fine followed by three years of supervised release; and wire fraud, in violation of Title 18, United States Code, Section 1343, which carries a maximum penalty of up to 30 years imprisonment and/or a $1,000,000 fine followed by five years supervised release. Additionally, HART has been charged with two counts of bankruptcy fraud, in violation of Title 18, United States Code, Sections 152(7) and (3), each which has a maximum penalty of up to five years imprisonment, a $250,000 fine and/or both, followed by three years of supervised release.

The Indictment alleges that from October 31, 2003 through July 1, 2005, HART and HALL, through Carriage Crossings, Inc., and ABC Trading, Inc., with employees of the corporations, THACKER and BROOKS and others, conspired to obtain 100% financing for people purchasing lots and mobile homes from the defendants and the corporations they represented, who would not otherwise qualify for such financing. Although the means varied between the properties sold, all sales involved inflated property values and false representations to potential lenders that either a down payment had been made by the purchaser, which in fact had not been made, or that a second mortgage was taken back by the seller for the difference between the first mortgage and the inflated value, however, this second mortgage had not actually occurred or been collected on by the seller. The defendants faxed false and fraudulent information concerning each property closing to the closing attorney, the lender, and the mortgage broker. In early 2004, HART, as an agent for Carriage Crossings, Inc., filed for bankruptcy. Omitted from the bankruptcy filings was at least one executory contract and the existence of bank accounts.

Mr. Holding commented on the importance of this case: ?The Indictment in this case reflects a scheme to take advantage of some vulnerable citizens?Those whose ability to purchase and maintain a home is slim. Here, we believe these defendants prayed upon these buyers and ?sold? them something that was, in fact, too good to be true.?

An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.Investigation of the case was conducted by the Federal Bureau of Investigation, the North Carolina State Bureau of Investigation, and the United States Attorney?s Office for the Eastern District of North Carolina.

Read The Full Article:
http://www.mortgagefraud.org/journal/2008/8/28/cumberland-county-nc-clan-charged-
in-fraud-case.html

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Minnesota AG files suit against 2 foreclosure
rescue companies

In the following press release Minnesota Attorney General Lori Swanson announced today (8/18/2008)filed two new lawsuits against so-called mortgage ?foreclosureconsultants,? bringing to ten the total number of such companies herOffice has sued. The new lawsuits are against Law & Associates,LLC, a Florida limited liability company, and Davis Mitigation, Inc.(also doing business as Davis Foreclosure Assistance), a New Jerseycorporation with offices in New Jersey, New York, and Florida.

?Wecontinue to see a disturbing trend of companies seeking to defraudMinnesota homeowners who are already in the financial pinch offoreclosure. These companies really kick people when they?re down,?Swanson said.

The suits allege that these companies usedwebsites, targeted mailings, and/or the telephone to solicitfinancially-distressed homeowners by assuring them that the companiescould stop the foreclosure process and save their homes fromforeclosure. The suits allege that the Defendants unlawfully chargedcustomers up-front fees of up to $1790, before any services wereperformed, failed to include required safeguards in their contractswith Minnesota homeowners, and failed to deliver promised services.

A2004 Minnesota law bars ?foreclosure consultants? from charging anycompensation until after the foreclosure consultant has ?fullyperformed each and every service the foreclosure consultant contractedto perform or represented he or she would perform.? The law alsorequires entities that charge homeowners fees to assist in stopping,avoiding, or postponing a foreclosure, to have a written contract thatincludes certain safeguards and allows the homeowner to rescind thecontract for any reason within three days.

The Minnesota Attorney General?s Office has published a consumer bulletin, entitled Facing Mortgage Foreclosure,which offers tips for borrowers facing mortgage default or foreclosure,and warns homeowners to be on the lookout for potential scams. Amongother things, Swanson provides the following guidance to homeownersfacing mortgage default:

• Take immediateaction to contact the lender if you are having trouble paying a loan.The lender may be willing to work out a repayment plan, loanmodification, forbearance, reinstatement, etc. Don?t wait to contactthe lender, as delays may jeopardize your options.
• Contact a reputable mortgage counselor. Borrowers may find legitimate counselors by contacting the Minnesota Housing Finance Agency (?MHFA?) or the U.S. Department of Housing and Urban Development (?HUD?).
• Don?tpay money in advance to a ?foreclosure consultant.? Minnesota law bansforeclosure consultants from collecting a fee until after they delivertheir services.

Swanson Also Permanently Bans Two Companies And Their Officers from Doing Mortgage Foreclosure Consulting Business in Minnesota

Ina related development, Swanson also announced today Consent Judgmentswith two separate companies: (1) Foreclosure Assistance Solutions, LLCand (2) American Housing Authority, Inc. and American HousingFinancial, Inc., for unlawfully charging Minnesota homeowners up-frontfees to save their homes from foreclosure and failing to deliverpromised services.

Under the terms of the ConsentJudgments, both companies and their officers are permanently barredfrom doing mortgage foreclosure consulting business in Minnesota andmust provide restitution to all affected Minnesotans. The ConsentJudgment with Foreclosure Assistance Solutions was approved by HennepinCounty District Court Judge John L. Holahan and the Consent Judgmentwith American Housing Authority and American Housing Financial wasapproved by Hennepin County District Court Judge George F. McGunnigle.

Homeownerswho feel they have been taken advantage of by a mortgage foreclosureconsultant who did not provide promised services for which thehomeowner paid money may file a complaint with the Attorney General?sOffice by calling 1-800-657-3787 or 651-296-3353. Consumers also maydownload a Consumer Complaint Form from the Attorney General?s websiteby clicking here and returning the completed form to: 1400 Bremer Tower, 445 Minnesota Street, St. Paul, MN 55101-2131.

Read The Full Article:
http://www.mortgagefraud.org/journal/2008/8/28/minnesota-ag-files-suit-against-2-
foreclosure-rescue-compani.html

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Lehman Plans to Lay Off 1,500: Report

Lehman Brothers Holdings Inc. (LEH: 15.87 +7.37%), which has been subject to ongoing speculation regarding its future and direction since the fall of Bear Stearns & Cos. earlier this year, is planning to cut another 1,500 from its staff before it releases third quarter earnings in mid-September. According to the New York Times, which first [...]

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http://feeds.feedburner.com/~r/HousingWire/~3/377359198/

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Prime Foreclosure Starts Surge Past Subprime in
July

There can be no remaining doubt that the nation’s mortgage crisis has become a problem for prime credit borrowers: data released by the HOPE NOW coalition on Wednesday finds that prime foreclosure starts have finally moved ahead of subprime foreclosure starts, for the first time since the industry coalition began collecting data in July of [...]

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Green Roofs Tac Abatement For New York - No
Benefit For The Sheep

When I think of green roofs I think of the old sod homes on the prairies during the dust bowl. But with new technology and agronomics, there are real benefits to adding a green roof for commercial buildings. New York state has recognized the benefits such as cutting down run off, reduced energy use, and [...]

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