EMERSON/GARFIELD – Community Frameworks will continue a series of classes designed to help potential homebuyers better understand credit, personal finances and mortgage lending on Tuesday at its office located at 315 W. Mission Ave.

“Financial Fitness” is a two-session, certificated course and will be from 6 to 8 p.m. The second session will be held next Thursday, 6 to 8 p.m.

Self-help homeownership informational meetings will be July 19 at 6 p.m. On July 27 and July 29, from 6 to 7:30 p.m., first-time homebuyers can take a class on mortgage basics.

The sessions are free and open to the public. Advance registration is required.

To register or for more information call (509) 484-6733, ext. 117, or visit www.community frameworks.org.

Speaker to discuss caregiving

LOGAN – Marty Richards, an author, teacher and long-term care consultant, will present a workshop for caregivers, “Caresharing: Strengthening the Bonds to those Coping with Dementia,” on July 21, from 9 a.m. to 3 p.m. in the Barbieri Moot Court Room at Gonzaga University School of Law, 721 N. Cincinnati St.

Cost for the workshop is $35 for professionals and $15 for all others. A box lunch will be provided during the noon hour.

To register and for more information call (509) 473-3390 or visit www.alz.org/inland northwest. Registration deadline is Wednesday.

The program is presented by the Alzheimer’s Association Inland Northwest Chapter.

Fire Station 99

marks anniversary

SPOKANE COUNTY – Spokane County Fire District 9 will have an open house to celebrate the one-year anniversary of Fire Station 99, 9105 N. Whitehouse St., on Saturday from 1 to 4 p.m.

Attendees will have an opportunity to tour the station, meet the firefighters of Station 99 and enjoy ice cream. Kids can also get their picture taken in a firetruck and say hello to Smokey the Bear.

I am a 24 year old male law graduate, and I am currently chambering (i.e. doing legal training) in a law firm. At the same time, I am just beginning (the equivalent of) a recognized Masters degree in Islamic banking and finance, which would end in about 1.5 years, or 2+ years the industry training. By the time I end my postgraduate studies, I would be 25 or so.

I have no idea where life will take me, but I hope to be able to work overseas or in an international bank — though I am sure that my postgraduate degree, being fully accredited and backed by my country's central bank, will be very helpful. To whatever extent that I can, I would prefer not to practice law, as my father is a lawyer, and I grew up fully appreciating the difficulties of being a practicing lawyer. (i.e. Being a lawyer is my backup plan; if all other plans do not work, I will still be professionally qualified to practice as a lawyer, and I did fairly well so to become a lawyer would not be a problem.)

Regarding my finances: I have no personal liabilities, other than an old loan for a engineering degree which if converted to US dollars amounts to approximately $30,000. (The engineering degree didn't happen, as though I did very well in school and in the sciences, I became disenchanted with engineering when I entered university, and switched to law after my first year mostly because of the flexibility of a law degree). I am blessed as my father could afford to pay for me through university. However, regarding the study loan, I have seeded an investment account with some small capital, and its monthly dividend is enough to automatically pay off the loan's monthly installment until all of it is paid, so the loan is not too worrisome a matter.

I do not have a car, or a house, nor do I plan to get either for now. (The car, maybe in one or two years, but the house, definitely much later.) I have only one bank account, in which there is currently nothing. My siblings and I are currently living with our parents (in my culture, it's considered rude to depart from home, for both males and females, unless you marry or must work in some faraway place) so at least I do not have to worry about rent, bills, car fuel, etc. I also have no plans to marry or have children anytime soon, because I'm prioritizing my career and financial stability first.

As for income: I am currently receiving an allowance from the law firm, which though not a very handsome sum, is more than enough for me, as I do not spend much. (More on my spending habits below.)

My spending habits: I am not so frugal, but I'm not a spendthrift either. I splurge only on the occasional coffee and big meals with friends, but other than that I don't spend much money elsewhere. When I was younger, I used to love gadgets — e.g. PDAs, phones, iPods, game consoles, etc — but having grown up a bit I realized that these things usually bring me no joy after the first few months fade away, so these days I make calculated spending decisions and buy only those things that I know I will last and enjoy repeated use from. (E.g. guitars, non-branded clothes, etc. MetaFilter's financial advice really helped me out — I learned how to save by thinking of a purchases as a matter of cost versus hourly income, and the "$1 per use" value of an item, etc.)

About me: I enjoy the occasional movie, but I don't watch TV. (I haven't sat on the TV sofa for several years.) But I love books, and I read a lot of non-fiction. In my spare time, I also study languages, partly out of passion, and partly because I'd like to use it for work. (I can read Japanese well, and I already qualify for JLPT1, but I will take the test sometime later as I don't have the time. Who knows, maybe with it I can get finance work in Japan?) I've done programming work before, and though I'm no John Carmack, I'm quite alright. I am satisfied with all I personally have at this point (my guitars, my effects pedal, my computer) and there is really nothing else I want.

I am not hungry for money. So when I actually start working, I wouldn't mind starting off with a medium-sized pay, but I'd love to be able to maximize what I can do with that money through investments, savings, or asset acquisitions as soon as I can, and then, as the years fly by, do bigger things with my increased pay.

i.e. I would love to start off life intelligently, and I would like the smart people of MetaFilter to help me out. I'd be pleased to receive any kind of advice — e.g. arguments like "a house is not an asset" , books to read, possible related job opportunities, investment methods, assets to buy, what bank products to look out for or how to employ my bank account properly, ways to steer my life professionally, etc. Anything goes. I am here to learn, and I will lend an ear to all advice. If I must buy books or do things to read, then I will go out and buy those books and do whatever else I have to do. (But I am not that smart financially, so if your advice is very technical advice, I will try my best to understand but I would also appreciate simple analogies to start off with.)

To sum it up: "If you could start off your life from my position, how would you do it, both professionally and financially?"

I'm also available for followup at .

[Note to Metafilter mods: I'm posting this anonymously, because I'd rather prefer not to attach information regarding my personal life/finances/professional career to my username. If this question is approved, please delete this paragraph.]

Mike Fuljenz universal coin & bullion Mike Fuljenz universal coin & bullion

A lot of us discount the cliché “that education s is life long process.” However it's absolutely critical for us to keep growing and learning after we get out of high school and college. Imagine how someone who studied computers in the 1960's would be if they didn't upgrade their skill set! We are gaining new and more advantage technology every year, and it's affecting every field of business. We have to be able to improve ourselves. This just doesn't go for our career though; we should strive to learn more about our family, our health, and our finances every year. The average millionaire reads a non fiction book a month; maybe you should consider reading one now and then! Here are three great personal finance books that you should read before 2007 is up.

To start out, there's a good chance that if you read personal finance books every now and then, you've already read the Millionaire Next Door by Thomas Stanley. The book describes how millionaires control their financial life, as opposed to how the average person controls their financial life. You may not have read his follow up, The Millionaire Mind. Stanley's new book about finance discusses the qualities of millionaires and how they got to where they are today. Hopefully you will be able to adopt some of the characteristics in the book to help you ensure a more successful financial future.

Of course it's just as important to know what not to do when it comes to personal finance, and that's precisely why I suggest that you read “Why We Want You To Be Rich” by Donald Trump & Robert Kiyosaki. In this book they are propagating the same financial ideas which lead them and their businesses to severe financial hardship. Some of Trump's businesses have filed bankruptcy and Kiyosaki himself filed bankruptcy! These are two people you should not be taking personal finance advice from. They do not factor risk into the equation of personal finance which gets them into severe financial trouble. You should read this book so you can understand the follies of their advice and others who spread around similar information.

Another new book on the scene which you should definitely read is “Get Clark Smart” by radio host Clark Howard. The book bills it self out to be the “ultimate guide to getting rich”, unfortunately it's a bit misnamed. It doesn't have a whole lot of secrets to become rich, but it does provide a lot of unique insight which will allow you to be wise and sound with your personal finances.

I'm a Realtor in a supposedly good place to be for this recession (Oklahoma City). This is a great article outlining the situation. We are impacted here by the return of some qualifying for loans and by the change in appraisal practices. Traffic has been slow this year, but steady and prices here are holding up. The number one thing pulling price down in my market is appraisals that are biased to the low side. I understand this, since they just spent ten years biased to the high side, but both are equally wrong. As far as loan qualifications go, I'm very happy to see some standards imposed aside from breathing to get $300k from Fannie, Freddie, or FHA.

My 2 cents on what should have been done, and needs to be done regarding the housing “crisis”:

Do not re-enact the homebuyer tax credit. It should not have existed in the first place, and is prolonging the agony.

Do not bail out any banks, any more. Again, prolonging the problems instead of addressing them.

Allow Fannie and Freddie to fail. Let the market take over lending. Keep government out of it. Yes, this will cause a severe crash. It will be short term compared to what is coming, however, with a real recovery at the end of it.

Obviously, I strongly favor tearing the band-aid off quickly instead of pulling it off as slowly as possible. Both housing and banking need to truly crash before this is going to get better. Somehow, I don't see this administration or this Congress allowing that to happen, until nobody wants to buy our debt anymore.

This will force me personally to shift over to the rental business if possible, or I will have to find another way to feed my family. Putting what would personally benefit me aside, I don't see any other way to fix this mess.

By Mike Konczal, a former financial engineer and fellow with the Roosevelt Institute who writes at New Deal 2.0

A year ago a week from today I discussed the financial innovation that wasn’t. It was a look at Lewis Ranieri, the creator of the mortgage backed security, as well as one of the minds behind the 1984 Secondary Mortgage Market Enhancement Act that created the market for MBS. In the piece he warns in April 2007 and May 2008 that securitization was never meant to handle a nationwide housing bubble and would have major failures if stressed along these lines.

Portfolio lending, like the lending in George Bailey’s bank, can handle writedowns and prevent foreclosures. There’s someone there who is assigned the role of making sure you can make your payments, thus preventing the major destruction that occurs in foreclosures. Ranieri was trying to alert the Milken conference on those two days that there was real danger, and that the market couldn’t fix it. Full quotes are at the post and worth your time, but this May 2008 quote summarizes:

Lou: The cardinal principle in the mortgage crisis is a very old one. You are almost always better off restructuring a loan in a crisis with a borrower than going to a foreclosure. In the past that was never at issue because the loan was always in the hands of someone acting as a fudiciary. The bank, or someone like a bank owned them, and they always exercised their best judgement and their interest. The problem now with the size of securitization and so many loans are not in the hands of a portfolio lender but in a security where structurally nobody is acting as the fiduciary. And part of our dilemma here is “who is going to make the decision on how to restructure around a credible borrower and is anybody paying that person to make that decision?” And what we need here is financial innovation in the first instance because you can’t do this loan by loan, you are going to have to scale this up to a bigger level and we are going to … have to cut the gordian knot of the securitization of these loans because otherwise if we keep letting these things go into foreclosure it’s a feedback loop where it will ultimately crush the consumer economy.

Moderator: How optimistic are you Lou? You used crisis, you used Great Depression a few minutes ago. That’s a little strong…

Lou: It’s not strong. I believe we know what to do because it is not remarkably different than what we’ve done in the past in the context of the housing bubble. If we are allowed to do it. We know how to restructure loans. The process has not changed and technology has made it easier….it will work because of the financial technology and internet technology…I don’t think this is an issue of the government, in fact we’d be better left to do what it is we actually know how to do, we know how to deal with housing crisis…but the difference between a foreclosure and a restructuring is frequently over 30% and because of the feedback loop that foreclosures create you keep taking a 30% loss on a smaller number. It doesn’t get to be fun. So no this isn’t a government issue, it is something the market needs to do…

And the market has failed. There are no major restructuring efforts through the private market. The legal conflicts and perverse incentives of middlemen servicers has devastated the housing market. The “nudge” philosophy of what the government can do – give the middlemen a little bribe to do the right thing – has also failed. A government action was clearly needed, and a government action was not delivered. Ranieri was wrong thinking that financial engineering would get them out of this legal mess, and growth and unemployment are suffering accordingly.

Representative Brad Miller is a blog reader, so I think he would have seen this writing on the wall in 2007. And I do know that Representatives Brad Miller and Linda Sanchez offered their “lien stripping” (the proper term for what has become known as cramdown) amendment in December of 2007, back when everyone first realized what a major problem we had in securitization (TPMCafe and dailykos).

Mortgage Modification

How well would this have worked? It’s worthwhile to explain, once again, all the strengths of this approach. From Adam Levitin’s Resolving The Foreclosure Crisis: Modification of Mortgages in Bankruptcy:

In light of market neutrality, the Article argues that permitting modification of home mortgages in bankruptcy presents the best solution to the foreclosure crisis. Unlike any other proposed response, bankruptcy modification offers immediate relief, solves the market problems created by securitization, addresses both problems of payment-reset shock and negative equity, screens out speculators, spreads burdens between borrowers and lenders, and avoids the costs and moral hazard of a government bailout. As the foreclosure crisis deepens, bankruptcy modification presents the best and least invasive method of stabilizing the housing market….

In a perfectly functioning market without agency and transaction costs, lenders would be engaged in large-scale modification of defaulted or distressed mortgage loans, as the lenders would prefer a smaller loss from modification than a larger loss from foreclosure. Voluntary modification, however, has not been happening on a large scale for a variety of reasons, most notably contractual impediments, agency costs, practical impediments, and other transaction costs.

If all distressed mortgages could be modified in bankruptcy, it would provide a method for bypassing the various contractual, agency, and other transactional inefficiencies. Permitting bankruptcy modification would give homeowners the option to force a workout of the mortgage, subject to the limitations provided by the Bankruptcy Code. Moreover, the possibility of a bankruptcy modification would encourage voluntary modifications, as mortgage lenders would prefer to exercise more control over the shape of the modification. An involuntary public system of mortgage modification would actually help foster voluntary, private solutions to the mortgage crisis.

Mortgage modification would de

al cleanly with the issues of refinancing, servicing conflicts and perverse incentives, second liens and other junior mortgages, getting rid of all the problems of mortgage securitization expert Ranieri identifies above.

Bankruptcy modification also would deals with the specifics of negative equity and unemployment income shocks without benefitting speculators, removing a real and worrisome issue for helping consumers who need it without helping those who don’t.

This is because in Chapter 13, debtors must bear their finances to the public, have money and time transaction costs, and live on a court-supervised, means-tested budget for three or five years. Chapter 13 also insists on full repayment of certain debts. Chapter 13 filers must have less than $1,010,650 in secured debts, so million-dollar mortgage holders or multiple property holders couldn’t rush to take advantage of this. It keeps speculators out.

This is not a magic solution. There will be those who can’t afford their mortgages even at market clearing rates, for which Right To Rent is a perfect solution. But these are fair and efficient and a proper response for this crisis rather than the costs of other options. And it is important to remember that there still are options for the government to pursue rather than a lot of loud talk about blaming evil runaway homeowners. By any conceivable measure, homeowners are under-strategically defaulting, not over. They are doing this because they want to stay in their homes and communities. It would be a wise idea to have clear government solutions to get them to do so.

Yves here. We have also advocated modification of residential mortgages in bankruptcy, as is now done for commercial real estate and other types of secured loans, such as for pleasure boats. That idea was beaten back early in the reform debate.

Note also that Konczal mentions the use of Chapter 13 bankruptcies. It isn’t widely recognized that servicers and the mortgage foreclosure mills also fight the use of Chapter 13, by filing a motion opposing the bankruptcy stay. Ironically, some attorneys representing Chapter 13 clients have fought these motions by questioning the standing of the party pursuing the foreclosure (often a servicer or MERS, the mortgage registry service, rather than the trust that presumably owns the note), which is producing results to the industry far more damaging had they allowed these Chapter 13 filings to proceed.

xyrmbr

As more and more critics jump on the Obama and US Treasury Department HAMP or Home Affordable Modification Program, a pattern is emerging. State by State each government representative is being more and more critical. Foreclosure rates are being reported as continuing to climb across the country. Many states, such as California, are complaining of being in a “crisis mode.” However, there is a cost effective way to reduce the rates of foreclosures that is not being utilized, that being the power of state laws.

States such as Georgia, have always ranked high on the foreclosure radar. This February of 2010, it was reported on local news stations that the rate of foreclosure is up 27%. The problem lies within the laws of the state. Foreclosures are non-judical in Georgia. This means homes can be foreclosed upon after 90 days of delinquency and with the efficiency of a high speed train. In cases, such as Georgia, and others across the country, lawmakers need to address the fact that this housing crisis is unlike anything this country has experienced since The Great Depression. The near collapses of our nation's banking system required the intervention of government. The crisis being experienced from state to state requires intervention by state and local government.

Instead of congressional hearings like the one done by Rep Barney Frank in 2009 or the one proposed by Congressman Ed Towns D-NY, which always accomplishes nothing except give a slap on the wrist to lenders and a freebie of expense reports to our government. State government needs to become more proactive in accomplishing something themselves. Just as “We The People”, realize that government will never throw all of us a lifesaver to stay afloat, governments and governors of each state needs to become the captains to save their crew.

If each state enacted its own laws to protect it residents and their American dream, then lenders would realize things need to change when it comes to modifying loans. If “particular” lenders are not doing enough to help homeowners and stabilize communities then they should not be allowed to 1)get the ability to “bid” loans for state government or government agencies in that state, 2)they should not receive ANY tax incentives or they should they should have them suspended 3)They should not receive building permits to expand their lending or banking facilities, 4)They should not be allowed to advertise on government run transportation, buildings, events or charities, 5) governments should advertise using the fees collected from existing lenders doing business in their state how many foreclosures these lenders have done and map it out and finally,6) laws need to be enacted to slow down the rate of foreclosures by making lenders have a tougher and MORE expensive foreclosure process.

Based on HAMP's results thus far, if the United “States” continue to wait and wait and wait to be rescued and do not take action, then they deserve the financial crisis that will continue for years to come. As my mother always said, “We are all responsible for our actions.” In the case of state and local government, they are responsible for their lack of it.

Home prices more than doubled in the Hamptons this year, pushing the median price of a status home up 35 percent to $908,500. The good news for local Realtors is that their commission has gone up accordingly. The bad news is that the Justice Department, perhaps inspired by the SEC's recent crusade for justice against Goldman Sachs, is now sniffing around asking why the jump occurred, and has sent letters to local brokers asking if the way they marketed the properties had anything to do with it.

Jonathan Lerner, managing director of property broker Engel & Volkers, received one such letter.

The April letter sought documents outlining how brokers disseminate property listings and to whom, Lerner said. “The question I think the Justice Department is asking is: Are they putting their own profits ahead of what they should be doing for the clients?” Lerner said.

Well, if that's the question they're asking, we can settle it right now. The answer is of course! This is real estate! Agents have got to put food on the table, and if that means convincing some nouveau riche jerk that buying a McMansion an hour away from their apartment will make them infinitely more fabulous, then they're going to do what they have to do. The question everyone should be asking is why people are willing to pay such prices for plywood boxes located near narrow strips of sand. But we guess that's the kind of question that leads you into a housing crash, not out of one.

Hamptons Home Sales Subject of Justice Department Inquiries

Home prices more than doubled in the Hamptons this year, pushing the median price of a status home up 35 percent to $908,500. The good news for local Realtors is that their commission has gone up accordingly. The bad news is that the Justice Department, perhaps inspired by the SEC's recent crusade for justice against Goldman Sachs, is now sniffing around asking why the jump occurred, and has sent letters to local brokers asking if the way they marketed the properties had anything to do with it.

Jonathan Lerner, managing director of property broker Engel & Volkers, received one such letter.

The April letter sought documents outlining how brokers disseminate property listings and to whom, Lerner said. “The question I think the Justice Department is asking is: Are they putting their own profits ahead of what they should be doing for the clients?” Lerner said.

Well, if that's the question they're asking, we can settle it right now. The answer is of course! This is real estate! Agents have got to put food on the table, and if that means convincing some nouveau riche jerk that buying a McMansion an hour away from their apartment will make them infinitely more fabulous, then they're going to do what they have to do. The question everyone should be asking is why people are willing to pay such prices for plywood boxes located near narrow strips of sand. But we guess that's the kind of question that leads you into a housing crash, not out of one.

Hamptons Home Sales Subject of Justice Department Inquiries

online stock trading strategies

The Brookings Institute published a press release on Friday announcing that on July 13 the organization will host a talk addressing the Lake Research Partners “American Dream” research, a new paper on economic security written by Brookings research fellow Elisabeth Jacobs.

The purpose of the meeting is to discuss what Brookings senses is “increasing economic anxiety among middle-class Americans…growing pessimism among American workers, disengagement from the public policy conversation, despair over the economic prospects of the next generation, and a virtually universal demand for government action” cutting through the United States' economic and domestic culture at the current time.

Since the Democratic party came into control of both houses of Congress again at the start of 2007, the issue of income inequality in America, which is increasingly seen by many as a gap-unfair to begin with-that is only widening with every passing year, has been put back in the limelight of policy debate, as the Democrats continue to represent themselves as “champions of the people”, with the implication that the Republicans are mostly cold-hearted lictors acting on the whims of big business at the expense of the average man.

The Democrats in recent years have championed the concept of “two Americas”, one for the abundantly wealthy, who have few concerns, and the shrinking-into-pauper-status middle class and working poor, who have little hope without big government intervention.

However, many members of both of the major political parties favor this view as the American middle class shrinks, with some former middle class families falling into “working poor” status and others rising into “nouveau riche” status.

Some U.S. economic researchers and commentators such as the notoriously Libertarian Cato Institute's Alan Reynolds have written that there is no crisis with the widening income gap from the lowest of the low to the highest of the high, and that the shrinking middle class has more to do with more Americans entering into “wealthy” status than it does more of them losing out entirely on the American dream.

Some Brookings Institute researchers have challenged this more optimistic outlook, however.

Most wealthy Americans tend strongly toward the view that their personal choices and driving ambitions are what have, sooner or later, brought them their money and fortunes. Only a tiny percentage of wealthy Americans today can claim to have inherited their money, and even among those who have most have sought to expand their fortunes, with some failing.

However, research has demonstrated that whether or not there is truth in that perspective, those who are not wealthy tend to despise those who are, and either want them humbled or themselves elevated-and if that means big government intervention, so be it.

The Brookings Institute meeting will take place with the purpose of assessing what, if anything, the Federal Government can or should do to alleviate the economic anxieties felt by so many in America today.

Sources used to research this news story:

PR Newswire press release, ” Brookings Event Announcement: Economic Anxiety and the American Dream”

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May 20, 2010

Huge Mob of SEIU Goons Attacks Banker's Home

Posted by Van Helsing at May 20, 2010 10:11 AM

As a “community organizer,” B. Hussein Obama trained other left-wing agitators. Presumably his lessons included tactics like this, as reported by Nina Easton:

Last Sunday, on a peaceful, sun-crisp afternoon, our toddler finally napping upstairs, my front yard exploded with 500 screaming, placard-waving strangers on a mission to intimidate my neighbor, Greg Baer. Baer is deputy general counsel for corporate law at Bank of America (BAC, Fortune 500), a senior executive based in Washington, D.C. And that — in the minds of the organizers at the politically influential Service Employees International Union and a Chicago outfit called National Political Action — makes his family fair game.

Waving signs denouncing bank “greed,” hordes of invaders poured out of 14 school buses, up Baer's steps, and onto his front porch. As bullhorns rattled with stories of debtor calls and foreclosed homes, Baer's teenage son Jack — alone in the house — locked himself in the bathroom. …

Now this event would accurately be called a “protest” if it were taking place at, say, a bank or the U.S. Capitol. But when hundreds of loud and angry strangers are descending on your family, your children, and your home, a more apt description of this assemblage would be “mob.” Intimidation was the whole point of this exercise, and it worked-even on the police. A trio of officers who belatedly answered our calls confessed a fear that arrests might “incite” these trespassers.

So much for the rule of law.

The tactic is classic SEIU/ACORN. If you want to live in a country where policy objectives are advanced by deploying mobs of barely human thugs to lay siege to the private homes of “capitalist exploiters” like something out of Night of the Living Dead, then you must be delighted with our current government.

What's interesting is that SEIU, the nation's second largest union, craves respectability. Just-retired president Andy Stern is an Obama friend and regular White House visitor. He sits on the President's Fiscal Responsibility Commission. He hobnobs with those greedy Wall Street CEOs — executives much higher-ranking than my neighbor Baer — at Davos. His union spent $70 million getting Democrats elected in 2008.

But putting SEIU/ACORN types in the White House hasn't made them any classier. Rather, it's made the whole country radically less classy — and radically less civilized.

What do these communist thugs have against Bank of America in particular, other than it being a bank and being part of America? BoA officials are flabbergasted,

citing the success of workout programs to help distressed homeowners, praise received from community groups, the bank's support of financial reform legislation, and the little-noticed fact that Bank of America exited the subprime lending business in 2001.

Exiting the subprime sinkhole could be the problem. As a lawyer for SEIU's Siamese twin ACORN, Obama sued banks for not issuing subprime loans based on race rather than ability to pay.

Easton touches on other possible motives:

SEIU has said it wants to organize bank tellers and call centers — and its critics point out that a great way to worsen employee morale, thereby making workers more susceptible to union calls, is to batter a bank's image through protest. (SEIU officials say their anti-Wall Street campaign has nothing to do with their organizing efforts.) Complicating this picture is the fact that BofA is the union's lender of choice — and SEIU, suffering financially, owes the bank nearly $4 million in interest and fees.

As America degenerates from a nation of laws into a nation of liberalism, you can expect to see more loans repaid in this fashion.

By the way, a little background on Baer:

A lifelong Democrat, Baer worked for the Clinton Treasury Department, and his wife, Shirley Sagawa, author of the book The American Way to Change and a former adviser to Hillary Clinton, is a prominent national service advocate.

Let this be a lesson to anyone who cooperates with Obamunism in hopes that the alligator will eat them last.

Now we finally understand the secrets of the pharoahs: a bunch of angry people in Stony Ridge, Ohio have sealed up a home with the homeowner inside, with his permission, leaving only a golf ball-sized hole in the front door. The man, Keith Sadler, says he fell behind last year after paying on his mortgage for 12 years, and that his bank promised to work with him but instead proceeded with foreclosure.

From the Toledo Blade:

Through an agreement with the Wood County Sheriff's Office, he was to have been out of the house on U.S. 20 in Stony Ridge by midnight yesterday, but instead, members of the Toledo Foreclosure Defense League, an organization he co-founded, helped seal him inside. A cell phone - and the hole in the front window - are his only means of communication.

Sadler says he wants the bank to work with him, not take his house away. The Sheriff says he has to enforce the law regardless of personal feelings, so he will eventually have to “go there and take possession.”

Sadler and his pals are webcasting from within the house, if you're bored at work and need some random video footage to watch.

“Man seals self inside foreclosed residence” [Toledo Blade] (Thanks to PJ!)

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One man's loss is another man's gain. Or so the saying goes. The latest loser in this equation is not the person that was forced into selling off their timeshare, or their garaged '65 Corvette Coupe that still needs “a little work,” it is the neighborhood bank. After years of progressive gains, home prices are plunging in a nationwide trend, opening up opportunities for even the most average entrepreneur to turn a tidy profit.

Home foreclosure rates have jumped close to 30% in the past year, and banks are eager to trim these dead weight loans off their books. Buying and selling foreclosed homes is an attractive option, but what do you need to know? You have seen the commercial spots for so-called private and government foreclosure listings that are suddenly made public and you are goosed up after watching yet another home makeover show, but you need to do a little homework before heading off to the auctioneer.

Gather Your Info

Buying a foreclosed home has some twists, but you should familiarize yourself with the nuts and bolts that govern any home purchase or sale. The Real Estate Settlement Procedures Act (RESPA) is a set of laws that regulate such transactions. Get a copy and review your rights as a buyer or as a seller.

RESPA requires that certain disclosures be made at various points during the transaction. Some of these disclosures specify various up-front costs, discuss options available from a lender and cover escrow details. Since you will possibly be moving through this process absent a realtor, take some time to be aware of the basics.

You also have the right to request a barrelful of information regarding any property you are interested in purchasing. Such things as the property's water supply, its building materials like the roofing and insulation, lead-based paint or other potential hazards, waste disposal, property taxes and average utility bills, can and should all be provided upon request.

It is your choice as to the inspector that you want to hire, and in most cases, it is the seller's job (or the banks) to pay for an outgoing inspection. Try to gather as much information on the property before going all in; there is no “lemon-law” in the housing market as there is with buying a vehicle.

Make sure you do some in-house legwork on the internet too. Various websites can help you to locate homes in foreclosure. Foreclosures.com is one such site. For a fee, Realtytrac.com will provide you with up to date properties that have gone into foreclosure.

Realtytrac also maintains a database of distressed properties, HUD homes and REOs (real estate owned homes - those for which the bank holds the deed). The site also monitors monthly and quarterly foreclosure rates, breaks foreclosures down by state, and is a helpful resource for those who may be close to foreclosure themselves, or for the potential foreclosure buyer.

According to recent tends reported by Realtytrac, the national average when buying a foreclosed home is about 25 percent below the full market value. That is some sweet action.

Another possible hurdle that should be investigated is whether a lien has been filed against any potential property you are looking to purchase. A lien is a legal claim against real property. Since you are looking into buying property that someone else did not or could not fully pay off, there is a good chance that a lien has been filed as collateral to secure the lender's interest in the loan.

Other liens may be filed by the state or county, perhaps for unpaid property or state taxes, or even by the IRS. If an individual owes more than five thousand to the IRS, a lien may be filed on real property. Contractors can also file Mechanic's Liens for unpaid work that they did on that property. If more than one lien is filed, they are called “competing” liens, and are subject to what is called “date priority.” Simply stated, whatever agency or individual got their hand in the pot first by filing their lien will be paid first by any proceeds.

A Title Search would uncover any such liens, and you should be aware that liens on properties bought through foreclosure typically transfer with the sale and remain on the property. That means you may have to pay them off before the property is free and clear. If you do not get a title search done, that home you think you just paid off may suddenly resurface with another large debt that must now be satisfied before you can assume ownership.

Go for Broker?

Buying a home through the foreclosure process is oftentimes a less formal transaction, and a quicker one, than looking to purchase property through a real estate agent or agency. Real estate agents receive their commissions through the seller. For this reason, some agents steer clear from the foreclosure market, although most are willing to provide you with a listing of foreclosed homes in your area.

For the first time foreclosure buyer, you can probably forget about trying to buy the property directly from the bank. Sitting down at the table with a bank requires a certain understanding of legalese. Although buying from the bank affords a fair amount of surety (You get to fully inspect the property, demand a clear title, etc.) it is probably the least financially rewarding option and requires quite a bit of know-how.

The same can be said for the auction format. Besides having certain credentials required by the state to buy and sell at auctions, this marketplace is fast moving and a little tricky if you do not know your stuff. Hiccup, and that shanty with the corrugated steel roof is suddenly yours.

If you do choose to go with the auction format, keep in mind that a full inspection likely will not be possible, and that you usually have to pay in full with cash or a cashier's check, or at least a present a pre-qualified loan letter from a bank or lender that specifies the funds they plan to lend you.

You are not left in the cold without any assistance however. Try using a broker. For a fee, typically less than what may be charged through a real estate agency, a broker acts on your behalf, negotiating contracts, purchases and or sales. Banks use brokers to sell most of their foreclosed properties, and once you have eyed a few properties that a bank holds outright title to, you will know that there is a good chance you can work with the broker to get the home for less than full market value.

Know the Neighborhood

Of course, you are not buying a foreclosed home in the middle of nowhere. Be sure to check out the neighborhood to see if it is decent, for lack of a better word. If you are going to be “flipping” the property after you have put some work into it, then consider what type of family may be interested in moving in. What is the crime rate? How are the local school systems? Remember, foreclosed homes in some areas have the potential to appreciate more than others. That largely depends on such factors as what was already mentioned, as well as comparable sales (the price that other homes in the immediate neighborhood have sold for), the neighbors, the home's proximity to a nearby city or any attractions, ease of access, how the home is situated on the lot, street noise, etc. Get to know everything about an area you are targeting, consider the above, and then look for foreclosed properties in those areas in order to maximize your earnings at sale.

Another suggestion is to verify with local lease agreement provisions whether or not foreclosures in their area require tenants to vacate the homes. Since many foreclosures may be set up as multiple family rental properties, you probably do not want to take on the role of Joe Pesci in the movie “The Super.” It is better if the lease requires tenants to leave; most do, but still a good thing to be sure of.

Pre-Foreclosure

A great way to get your hands on foreclosed properties before they are mired in legal muck is to look for homes that may be in pre-foreclosure. Just as it sounds, pre-foreclosures are homes that are going, but have not yet fallen, into permanent default loan status. In this case, you may be able to buy the home directly from the homeowner. Pre-foreclosures require the least amount of capital going in. You also have the opportunity to thoroughly inspect the home and conduct a timely title search.

In a pre-foreclosure transaction, the homeowner agrees to sign the deed of the property over to you, and you then assume the existing mortgage and make the payments to the lender. This option is attractive to the owner as well, because it allows them to avoid foreclosure and the horrid credit impact it carries, as well as salvage some of the equity in the property. Once the loan has been satisfied, and if the owner has equity over and above any liens on the property, you and the owner will have to negotiate how that equity is to be split, if at all.

I know what you are thinking though. How do I find properties that are in pre-foreclosure?

For sure, there is a short window of opportunity to get your hands on these properties, so you will need to work diligently. Once a property hits pre-foreclosure, owners have about 2 to 3 months to bring themselves current. If the homeowner does not rectify the default condition, the lender may post a notice of sale, sometimes right at the local county courthouse. This is done at least 21 days prior to any auction. If homeowners find they cannot bring themselves current, or know that they will not be able to, that is your chance.

Again, go online. Many agencies and even web sites that FSBOs (For Sale by Owner's) advertise on may show homes in pre-foreclosure. Local newspapers also list notice of public default debts that have been secured by liens. In various stages of the foreclosure, notices are recorded with the County Clerk at your County Recorder's Office. This public information is available to anyone, and is free. Visit your county's office and do a search for a Notice of Default (NOD), Lis Pendens (a fancy term that means a lawsuit has been filed on assets), or for a Notice of Sale.

In pre-foreclosure, you, your broker or your real estate agent should contact the owner directly to inquire about the property. Make sure you are in a position to make immediate payments if need be. You may be referred by the homeowner to a trustee or to an attorney, especially if that property is subject to the terms of a bankruptcy. The trustee or attorney cannot release specific information to you regarding a bankruptcy filing, but they can confirm if the property is in full foreclosure or not.

Remember your manners when trying out this option. Making contact with a homeowner who is in a financial dilemma is inherently thorny. Know that the owner in default retains his or her ownership rights, and may very well be attempting to avoid foreclosure. Selling their home or turning it over to you may not be something they want to consider, at least not as of yet. If it is clear they are trying to keep hold of their home, then move on. Telephone contact with these individuals may be tricky. For this reason, it might be best to try a mass mailing of a professional looking postcard to properties of interest.

Closing the Deal

Buying a foreclosed or pre-foreclosed home probably means that there is some fixing up to take care of. Unfortunately, once a homeowner knows that the bank is going to take control of their property, maintenance and repair work drops to the bottom of their to-do list.

Be prepared for structural or electrical problems, roofs that leak, etc. Vandalism may also be something you have the regrettable responsibility to deal with. Not from the kid with the spray can, but from the irate householder who is about to lose everything. Repairs that were not immediately evident may suddenly eat away the amount you may have shaved off the top of the market value.

Whenever you buy a foreclosed home, your contract should have some type of contingency clause that may allow you to back out of the sale. That way, you exercise control on the property, and can also exercise your option not to buy it based on the home's physical or financial condition, or if you find it is sitting on a hot bed of buried nuclear contaminates.

Since many owners do not have the money or do not feel the need to make extensive repairs, you will probably see the term “as-is” on some of the purchase agreement paperwork. These two little words carry a lot of influence. This means you have agreed to purchase the property in its current condition, and you waive any realistic ability to later make qualms over the fact that there is a rat population that rivals a small city living in the floorboards. Again, make sure that your contingency clause is clearly stated in your contract.

Keep a track of all your estimated repair costs and capital investments, both for tax purposes and for estimating your asking price when the property goes on to the market. Your chances of realizing a nice profit and keeping you in the “black” will increase if you keep track of such expenditures.

If you and the owner agree to proceed with the sale or transfer of the property into your name, then you will have to negotiate the terms of the purchase, taking into consideration the factors already mentioned. The foreclosing lender, trustee, attorney, real estate agent or broker may need to be present or included in these talks.

Certain intangibles may come across the bargaining table. The owner may want to stay in a pre-foreclosed home until they find a place to live, for example. It is surprising how many little factors may come up. As far as purchasing agreements, if you are not familiar with how to draw one up, consult with a local real estate agent. They will help you with one for a small fee.

If you can assume the loan outright, as in the case of a pre-foreclosure deal, you may be able to easily take on the current terms of the loan. If not, the bank may allow you to reamortize or change the terms of the loan, such as the payments amounts, length of the loan, interest rates, etc. Other lenders may require the full amount of the loan up front.

Tips and Hints

A few other tips to be mindful of… It may be a good idea to focus on homes that have only been lived in for perhaps 10 years or less. The longer someone has lived in his or her home, the greater the equity that has been built up. Dealing with the homeowner regarding this equity, especially in the case of a pre-foreclosure sale, may be problematic.

Too, remember that your target goal of saving at least one fourth off the full market value is subject to the recent home recession trends. This means you may have to settle for making a little less than that, especially considering the way property values in some markets have nose-dived.

Many new foreclosures stem from problems in the sub-prime market, and people are losing their homes after being hit with huge jumps in their monthly payments, particularly in the case of adjustable rate mortgages. Because of this, the lender may likely be pursuing an amount that is close to the full market value of the property, or at a slight discount only.

To sum it all up, buying and selling a home in foreclosure is no doubt a gamble. As with any risky venture, you do not always win. Nevertheless, by doing your groundwork in advance, familiarizing yourself with your local state's foreclosure laws and sticking to a couple of necessary principles, buying a home that has been foreclosed on and then marketing it can be a profitable and rewarding endeavor.