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NEW -> Contingent Buyer Assistance Program
Article from CNN Money:



<a href="http://money.cnn.com/2008/08/20/real_estate/subprime_homes_lead_downward_charge/index.htm?postversion=2008082210">These homes for sale suck</a>



<em>Never before have there been so many squalid, dilapidated homes on the market - and they're helping to exaggerate already-plummeting home prices.</em>
 
The only loans I see funding are FHA, I have some of them coming up,

hard money, and reverse mtges. I see NO conventional loans going

through. They always have an excuse not to actually close.



My honest appraiser buddy is hanging on there doing FHA appraisals.

He has had it with small brokers. The few who are left are begging him

to meet some sort of goal: "Please, I have to meet his figure." He

doesn't like being pressured like that.



He intends to work in this field until retirement and he's a young guy,

so has to keep up his reputation.
 
The traditional mortgage market is dust. There now are "loan Mod shops" opening up everywhere. From what my colleagues and I can tell many of these places are infested with the slimiest of slime.
 
[quote author="lendingmaestro" date=1219556123]The traditional mortgage market is dust. There now are "loan Mod shops" opening up everywhere. From what my colleagues and I can tell many of these places are infested with the slimiest of slime.</blockquote>


Don't forget to add in the debt consolidation sham companies they are opening or have with the loan mod companies. Even the slime thinks they are too slimey.
 
Hey, you Californians. I read that Amex hasn't been paid by the state

so it is cutting off credit for public employees with state credit cards shortly.



It said it was forebearing for a while, but shortly, no more credit.



What will give?
 
If they could just balance the budget, it wouldn't be a problem. Once it's done, everything will go back to normal. Not sure how long Amex will agree to non-payment.....
 
On www.cnn.com

<a href="http://money.cnn.com/2008/08/20/real_estate/subprime_homes_lead_downward_charge/index.htm?cnn=yes">Hovels Dragging Down Home Prices</a>



No where in the article do they mention that after being foreclosed upon, angry owners vandalize the property and sell off everything of value. It is clear from the look of many of the worst homes that there is a lot of owner anger toward the banks. Maybe we should call it "Foreclosure Rage" or "Temporary Eviction Insanity".
 
[quote author="Trooper" date=1219567678]If they could just balance the budget, it wouldn't be a problem. Once it's done, everything will go back to normal. Not sure how long Amex will agree to non-payment.....</blockquote>


In years past, they issued "warrants," which are basically state issued IOUs that could be cashed in as soon as there was a budget.** I have no idea why they are not doing that this year. Oh wait, yes I do. Not doing so allows people to posture. Yech. :sick:



**Some banks like Wells and BofA would cash the warrants of state employees, and then turned the warrants in once the budget went through. So at least the employees could stay afloat while Rome burned, er. . . the budget was debated.
 
Eva, a friend of mine is a field rep for a State Senator. During the last budget crisis, Key Bank in Sacramento "loaned" them the same amount of their paycheck throughout the entire event. It was then paid back with the lump sum back pay she received. So posturing is the correct word. It sounds horrible..."State workers no longer receiving paychecks".....but in actuality, everything is moving along at the same pace. Silly.



I haven't talked to her lately so I don't know what's happening this time around.



I think the Amex thing has more to do with the battle right now between Arnold and State Controller John Chiang. <a href="http://Schwarzenegger orders cuts amid fiscal crisis ">Who refuses to obey the directive</a>
 
Diana Olick interviewed Lawrence Yun about an hour ago. Yun stated banks were taking homes straight to realtors, 'bypassing' the MLS. I wasn't sure I heard right. Then he said it again.



In my mind, what he is saying is effectively you can no longer trust the MLS.



The video isn't up on CNBC yet.
 
The Yun video is now up on CNBC. Here is the link.



<a href="http://www.cnbc.com/id/15840232?video=831627301&play=1">http://www.cnbc.com/id/15840232?video=831627301&play=1</a>
 
[quote author="lendingmaestro" date=1219469939]It looks like the sheep got sucked into another sucker's rally today.</blockquote>


See...told ya so!!!



Top Stories

Dow Plunges 250 Points- AP
 
[quote author="lendingmaestro" date=1219708084][quote author="lendingmaestro" date=1219469939]It looks like the sheep got sucked into another sucker's rally today.</blockquote>


See...told ya so!!!



Top Stories

Dow Plunges 250 Points- AP</blockquote>


Whoa, slow down LM we are actually still 68 point higher than we were a week ago.
 
[quote author="morekaos" date=1219754392]I know, but I will go out on a limb here and predict the market is higher by the end of the year.</blockquote>


Anyone else expecting the S& P to retest 1200 before another steep leg down in home values during winter capitulation and thus begetting further write downs, credit tightening, and the screeching halt of consumer spending? Christmas will be interesting since so many businesses bank on the holiday season to make their numbers. Earnings should errode significantly if consumers can't loosen up the purse strings. I'd love to see S& P hovering around 1100 next year but maybe I'm the only one.



Would a 28-29% decline be too much for a once-in-a-generation event? Or will everything be back to "normal" even before housing bottoms out and stabilizes financials?
 
<strong>Bank profits fell by 86 percent in 2Q</strong>



WASHINGTON - U.S. banking industry profits plunged by 86 percent in the second quarter and the number of troubled banks jumped to the highest level in about five years, as slumps in the housing and credit markets continued.

Federal Deposit Insurance Corp. data released Tuesday show federally-insured banks and savings institutions earned $5 billion in the April-June period, down from $36.8 billion a year earlier. The roughly 8,500 banks and thrifts also set aside a record $50.2 billion to cover losses from soured mortgages and other loans in the second quarter.



The FDIC said 117 banks and thrifts were considered to be in trouble in the second quarter, up from 90 in the prior quarter and the biggest tally since mid-2003...<a href="http://news.yahoo.com/s/ap/20080826/ap_on_bi_ge/troubled_banks;_ylt=ApSv3jD3YrcTM1Ql2WkANG9v24cA">more</a>
 
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