Blogging Broker

‘Foreclosure Mill’ Employees Got Gifts For Altering Documents, Witness Says

SNIP:  At a large Florida “foreclosure mill,” a manager signed up to 1,000 documents a day without reading them and employees were given gifts to speed up foreclosure paperwork, according to depositions released today by the Florida Attorney General’s Office.

The Fresno housing market isnt the only market where homes are selling for a fraction of their previous values.

Helmsley Mansion Goes for $90M Below Asking Price – NYTimes.com.

In case you forget, Leona Helmsley is the stupid bitch who left $12 million to her dog.

YouTube – Fraud Factories: Rep. Alan Grayson Explains the Foreclosure Fraud Crisis.

Pretty good!

Enjoy.

via THE FINANCIAL PHILOSOPHER: Bankers’ Song – We Didn’t See it Comin’.

The reason I am wondering is I happen to be looking at a listing for a home:

MLS#358901

The home is located at 3423 E Illinois Ave, Fresno, CA 93702.

This is a small 2 bedroom 1 bath home with 808 sq. ft. According to the listing information given this home “was totally redone by Housing Authority. Sharp, clean, newer carpet and paint in and out.”

Public records that we have access to through our MLS (and which I consider to be generally accurate) state it was purchased by the Housing Authority (it actually reads City of Fresno) on 3/23/2010 for $106,696.

Please note that this is the price they paid PRIOR to totally redoing the house. I dont know what the remodel cost were but given that it was GOVERNMENT WORK my guess is it wasnt cheap. So, add the purchase price and then – being conservative – I will add $10,000 for the remodel. That puts the total investment at $116,696.00. Add in the realtors commission for selling 6%, plus closing cost (I’ll add 1% for closing) and we have an additional $6300.00 — bringing the total cost to $122,996.00.

Now, lets assume that the home sells at the full ask price (NOT LIKELY) and do the numbers:

Total cost to Housing Authority: $122,996.00

House Sells for full ask price of $90,000

= LOSS OF $32,996.00

….of course we are not factoring in the cost of the city administrators that were paid to oversee the purchase, the contracting process, and the sale.

TYPICAL GOVERNMENT WORK!

If these figures reflect the actual transaction numbers, and I think they do; only I think the loss will be greater because the house is likely to sell for closer to $75,000 then $90,000 —> my question is : WHO THE HELL IS MONITORING THIS CRAP???

How many farking bad loans and money decisions by the City of Fresno are out there? The city guaranteed the loan on the Metropolitan Museum and they closed their doors. I trust that you – the reader – know that when the government farks up, its you and I the tax payer that pick up the tab.

Ok, I know I have been absent from the blog scene but I just read an agent’s comment on an MLS listed home that compelled me to hit the keyboards.

The comment:

“VERY cooperative and creative seller”

My questions to the agent would be, if the seller is so cooperative how come the home has been on the market for 664 days? How come the price has only been reduced by $27,500 in that time?

For those looking to sell in Fresno – its a TERRIBLE market for selling.

For those looking to buy – its looking better (provided you have cash or can get the financing)

Here’s a look at our market stats for the last 24 hours:

Price reductions have been increasing substantially.

Just came across this article.

Ax May Fall on Tax Break For Mortgages

SNIP:

“The popular tax break for mortgage interest, once considered untouchable, is falling under the scrutiny of policymakers and economic experts seeking ways to close huge deficits.”

________

Should homeowners and investors lose the tax deduction they now enjoy they would have to recalculate the value of ownership. I dont think it would bode well for property prices and it would certainly reduce the amount of disposable household income putting downward pressure on consumer spending during already frugal times.

Q.]  What is worse than losing your home?

A.]  Having to pay taxes on the amount of debt you were “forgiven” by the lender.

This is a quick follow up to my last post and provided the link the State’s website:

Mortgage Forgiveness Debt Relief Extended.

Mortgage Debt Relief at last!.

Governor Schwarzenegger signed SB 401 (Wolk) into law on Monday.  This bill aligns the state’s treatment of forgiven debt with that of the Federal government.

What it means is that distressed owners that are forced into foreclosure or a short sale will not be taxed on the difference between the sales price and the original loan amount.  Or, as the author of the article so succinctly sums it:

“the Franchise Tax Board will NOT be meaner than the IRS”

Haven’t blogged for ages.  Got onto Facebook and started using it.  I suppose I’m experiencing technological overload and am not certain as to where to best deploy my resources.

Nevertheless, here is my first comeback blog, which is nothing more then pointing to an article I just read:

Economic View – Don’t Bet on a Long Housing Recovery – NYTimes.com.