http://www.shortsalesriches.com
* Follow me on Twitter: http://www.twitter.com/mclaughlinchris
************
Investors – tired of losing your short sales and REO
flips to 30 day seasoning rules… or the deal dying
on the vine when it takes too long to close?

And, you’re locked out of an important group of buyers –
FHA – because you have to own the property for 90 days
before you can resell it!

Now we have a solution to all these problems, which have
left too many investors high and dry. And the Encore begins
at 3 PM ET, NOON PST this Saturday!

https://www2.gotomeeting.com/register/241109395
************

Keep the $8000 tax credit, say realtors

A large majority of the nearly 1,000 real estate agents surveyed in a recent Weichert poll say the first-time homebuyer tax credit of up to $8,000 has had a significant impact on spurring consumer interest in getting into the housing market. Some even called for an expansion of the program past its current expiration date and to homeowners that do not yet qualify. 71% indicated the credit was the single largest factor motivating the buyers they’ve worked with so far in 2009, 20% of respondents said affordable home prices were the motivating factor, and 8% indicated low interest rates played a major motivating role. 92% said the market will decline if the tax credit expires at the end of November while 97% of respondents favored extending the credit through Dec. 31, 2010. “The tax credit is working to restore confidence and stimulating the overall economy but we still have a long way to go before we return to a normal market,” said James Weichert, president and founder of Weichert. “As this survey shows, many in our industry are concerned that we will lose much of the ground that has been made toward a recovery if the tax credit is not extended.”

30-Year Mortgage Rate Falls to 4.94%

According to Freddie Mac’s latest survey of data through October 1, the average 30-year fixed-rate mortgage (FRM) had a 4.94% interest rate with an average 0.7 points, down 10 basis points (bps) from 5.04% last week. The 15-year FRM averaged 4.36% with an average 0.6 points, down 10 from 4.46% last week. The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.42% with an average 0.6 points this week, down from 4.51% last week. The one-year FRM averaged 4.49% with an average 0.5 points this week, also down from 4.52% last week. A separate rate survey conducted by Bankrate.com of major US banks and thrifts indicated rates fell for a fifth week, dipping to their lowest levels since spring. The 30-year FRM slipped 11bps to 5.25%, while the benchmark 15-year FRM fell 10bps to 4.65% this week. “This is as good a time as any to refinance because Uncle Sam will make it more difficult and more expensive to refi in a few months,” said Bankrate’s Holden Lewis in weekly commentary.

Unemployment hits 9.8%

The national unemployment rate inched up to 9.8%, another 26-year high. The Labor Department said there was a net loss of 263,000 jobs in the month, up from a revised loss of 201,000 jobs in August. Economists surveyed by Briefing.com had forecast losses would fall to 175,000 jobs. The labor market had shown slow but relatively steady improvement since a record loss of 741,000 jobs in January, and this is only the second time this year that job losses rose from the previous month. However, September marked the 21st consecutive month that the number of workers on payrolls has shrunk, a period during which 7.2 million jobs have been lost. Even though many economists, including those at the Federal Reserve, say there are signs that the economy is growing once again, today’s jobs report shows that job losses could continue well into the recovery, limiting the strength of any economic turnaround.

GSE REO Portfolio Near 100,000

According to 10-Q filings with the Securities and Exchange Commission (SEC), Freddie Mac’s portfolio is nearly 35,000 properties, while Fannie Mae’s is closing in on double that figure at nearly 64,000. Fannie’s REO portfolio nearly doubled from the first half of 2008 compared to H109. Fannie held 33,729 properties during H108. The number of properties increased in all regions of the US except the Midwest, which experienced a decrease from 15,265 to 14,626 properties, but the rate of growth in the two portfolios has declined. Freddie acknowledges it expects to experience further losses from REO properties: “While temporary suspensions of foreclosure transfers and recent loan modification efforts reduced the rate of growth in our charge-offs and REO acquisitions during the second quarter of 2009, our provision for credit losses includes expected losses on those foreclosures currently suspended,” the Freddie filing said. Freddie said its pool of Alt-A interest-only loans, as well as 2006 and 2007 vintage loans comprise the biggest share of its portfolio and “continue to be larger contributors to our worsening credit statistics than other, more traditional loan groups,” because of factors like declining home prices. Freddie’s REO properties are concentrated in the West region of the country, and homes there comprised 27% of the unpaid principal balances of Freddie’s single-family mortgage portfolio as of June 30, 2009, but accounted for 46% of its REO acquisitions in the first half of 2009.

Regulation Z statutes in effect

The Federal Reserve’s long awaited Regulation Z statutes went into effect yesterday after more than a year of preparations by the mortgage industry. Regulation Z is a truth-in-lending regulation to protect consumers who buy higher-priced mortgages with annual percentage rates (APR) above the average prime offer rate for a comparable transaction by at least 1.5 percentage points for first mortgages, or 3.5 percentage points for second mortgages. Lenders now have to provide additional disclosures when their customers purchase these loans. In addition, lenders will now evaluate the borrower’s ability to repay, verify income and assets, establish escrow accounts for taxes and insurance, and won’t have prepayment penalties for two years on most loans.

Taxes looming?

Remember the taxes the President promised no one but “the rich” (making over $250,000/yr) would have to pay? Well, no matter how much you make, reach for your wallet. An increasing number of influential Democrats and fiscal-policy experts have signaled that lawmakers will have to get a handle on the deficit, and they recommend seriously considering the creation of a value-added tax (VAT) on top of the federal income tax. That would mean more money out of everyone’s pockets when buying virtually anything — sweaters, school books, furniture, pottery classes, and dinners out. A VAT is tax on consumption similar to a national sales tax, but it’s not just paid at the cash register. It’s levied at every stage of production, so all businesses involved in making a product or performing a service would pay a VAT. And then the retail customer gets hit as well. Paul Volcker, the former chairman of the Federal Reserve who heads President Obama’s tax reform panel, (among others, including liberal think tanks, of course) said that when it comes to getting control of the country’s debt burden, “I think if we can’t do it on the cost side, we’ve got to go on the revenue side. And it’s too early to do it, but it’s not too early to begin wondering.” Well, we all knew deep down that the “no new taxes” shtick was too good to be true, didn’t we?

Now on to our real estate educational section…

What’s Better…Short Sales or Savings?
No, this isn’t a trick question nor are we opposed to savings – in fact, liquidity is an essential survival strategy that helps investors at all levels ride out tough economic times; however, it is possible to take anything to the extreme including savings.
As Americans across the nation embrace savings for the first time in years, there is a growing need for rational financial reasoning especially when it comes to investments. For years consumers were content to spend money they had not earned then simply make credit card payments or take out a second mortgage. Today all that changed as the rate of savings has gone from literally less than zero to nearly ten percent within the past two years.
While paying down debt and getting one’s financial house in order is always a good thing – it is not the same as investing. Setting aside money for a rainy day and keeping a little extra on hand for emergencies is also a solid strategy but should never be confused with growing your money.

Let’s take an up-close and personal look at short sales versus savings to see how it will impact the average investor. We will use a hypothetical case study of Mr. Saver versus Mr. Short Sale to see how each strategy plays out over time.

Mr. Saver

Mr. Saver is like most average American’s; he is fortunate enough to still be employed and has an “average” household income that just happens to reflect the nationwide median – $50,000. Mr. Saver is 30 years of age with 1.3 children (the third child is a very spoiled dog), married and wishes he had more time to spend with friends and family. Mr. Saver has another 35 years to work before qualifying for Social Security (actually 37 more years but who is counting) and puts away a whopping 10% of his income each and every year….which is far above the national average but we are going to use extremes to show the very real difference in expectations.
At the end of the year, Mr. Saver has put $5,000 into savings and plans to continue with this same habit for the next 30 years. Current interest rates are roughly 2 percent (if you are lucky). At the end of 30 years Mr. Saver will have a balance of $215,750 after managing to save $156,200. Sounds pretty good right? Well, not really. First of all you need to take inflation into account. Using a historical 30 year adjustment, that same $215,750 will only be worth approximately $73,000 in today’s dollars. Yes, we know that is less than what you paid in but that is how inflation works…it robs your money of value over time. To add insult to injury, Mr. Saver must pay taxes on the earned interest. Using a conservative estimate from today, that would eliminate at least another $10,000 to $12,000 leaving roughly $205,000 or less than $70,000 in inflation adjusted purchasing power. Wow…Mr. Saver worked hard and did without for 30 years just to set aside about 18 months of income. He better hope Social Security is in good shape by then because he is going to need it!
“Wait a Minute” you might argue, “Interest rates are likely to go up after the economy recovers”. That is certainly true but by definition, interest rates typically lag behind inflation rates or the banks could not afford to lend money. Additionally, most people tend to save less when prices rise – remember, just a few years ago the national average for savings was literally below zero. However, for the sake of debate, we will use a historic interest average of 5 percent. At the end of 30 years the total balance would be just under $370,000 with the same $156,200 contribution and $212,000 interest earned. Taxes on interest would conservatively run $25,000 leaving a total of $345,000 or $116,000 equivalent adjusted for inflation. It’s Better… but not by much.

Mr. Short Sale

Mr. Short Sale also is employed with a household income of $50,000, 1.3 children and no other debt. Instead of putting his money into a low interest savings account, Mr. Short Sale decides to invest the same $5,000 toward purchasing his first modest short sale home. He decides to rent it out and allow someone else to pay for the mortgage so is able to take hefty tax write-off’s after combining the PITI plus depreciation and closing costs. For the sake of simplicity we will assume he rents the home for just enough money to allow the home to pay for itself without making any profit…in reality, it would be much more likely to create a positive cash flow.
Mr. Short Sale continues to purchase a home every 2 years rather than putting the money into a savings account. At the end of 30 years Mr. Short Sale own 15 homes each generating a steady income that pays for itself. One home is paid in full and every 2 years another mortgage is paid off adding to the total number of paid in full homes. Mr. Short Sale can either continue to collect rent every month or sell one or more properties to fund his retirement.
Because real estate is a tangible asset, it has continued to appreciate in value each and every year so those purchased early in his investment career are now worth substantially more in value. In fact, let’s assume Mr. Short Sale purchased very modest starter homes for only $50,000 in 2009. In 30 years when he goes to retire, that same property should be worth at least $150,000 due to inflation….that represents only one year’s savings compared to 10-15 years worth by Mr. Savings above. Remember, every two years Mr. Short Sales will have another mortgage paid in full.
Ask yourself, how “safe” are your savings compared to short sales?

See you at the top!

Chris McLaughlin
http://www.shortsalesriches.com
P.S. : YOU MUST SEE THIS! The move celebrated real estate
investing movie of the year:

http://www.housewarsmovie.com
**************
Copyright Loss Mitigation Institute LLC 2009.
All Rights Reserved.
http://www.shortsalesriches.com
http://www.shortsalescoach.com
http://www.sixfigurebpo.com
http://www.reomillionaireclub.com
http://www.youtube.com/shortsalesriches
*************************************************
Finally, a blog for Real Estate professionals
that want up-to-the-minute news, & how it impacts
us and our market…
http://www.shortsalesriches.com/blog
*************************************************
About the author:
Chris McLaughlin is widely known as America’s top
Real Estate Attorney and Investment Consultant.
* As the top Florida foreclosure and pre-
foreclosure expert, he oversees more than
100 short sale & REO closings each month
* Long-time authority on real estate investing
and rapid reselling of distressed homes. Owns
portfolio of nearly 100 high-value, high-profit
properties
* Owner of one of Florida’s largest Real Estate firms,
running 4 different offices, supporting nearly
400 agents, uniquely positioning him to help
thousands of investors make money in the
biggest market opportunity ever!
* Highly sought-after speaker, consultant, and
seminar leader for current trends and hot topics
in Real Estate Investing, Entrepreneurship, and
Wealth Building
* Follow me on Twitter: http://twitter.com/mclaughlinchris
* Add me on Facebook: http://www.facebook.com/mclaughlinchris
–

* Follow me on Twitter: http://www.twitter.com/mclaughlinchris

************

YOU MUST SEE THIS!  The move celebrated real estate

investing movie of the year:

http://www.housewarsmovie.com

Investors – tired of losing your short sales and REO

flips to 30 day seasoning rules… or the deal dying

on the vine when it takes too long to close?

And, you’re locked out of an important group of buyers -

FHA – because you have to own the property for 90 days

before you can resell it!

Now we have a solution to all these problems, which have

left too many investors high and dry.  And the Encore begins

at 8:30 PM ET, 5:30 PM PST tonight!

Prepare yourself to become a Jedi Knight of the Real

Estate flipping wars… and get the keys to kingdoms

of wealth!  Because with this system, you’re going to

make more money than you ever dared dream possible…

https://www2.gotomeeting.com/register/342341202

************

Freddie Mac door knocking delinquents

Freddie Mac has contracted Titanium Solutions, a third-party servicer, to go to the homes of delinquent borrowers to get the missing information and documentation necessary to start three-month long trial repayments under the Home Affordable Modification Program (HAMP).  “By meeting with our borrowers, one on one, Titanium Solutions can help them overcome the roadblocks keeping them from starting their Home Affordable Modification trial periods,” said Ingrid Beckles, Freddie Mac senior vice president, default asset management.  As a fraud prevention measure, Titanium representatives will not be allowed to accept mortgage payments or any other money from borrowers, Freddie Mac said. Representatives will also carry a copy of the solicitation letter the borrower initially received from their servicer, which contains unique information about the borrower’s loan.  In addition to the door-to-door campaign, Freddie Mac sends representatives to foreclosure mediation events put on by the Treasury Department and has hired Home Retention Services, a subsidiary of Stewart Lender Services, to process the backlog of modification applications from distressed borrowers with Freddie Mac mortgages.

Job losses keep slowing

According to Automatic Data Processing, a payroll-processing firm, private-sector employers cut 254,000 jobs in September, down from a revised 277,000 in August.  It was the smallest monthly total since July 2008, but more than the 200,000 loss economists surveyed by Briefing.com had forecast.  The good news is that the difference was “not statistically meaningful,” according to Joel Prakken, an ADP spokesman and chairman of Macroeconomic Advisers, LLC.  Large businesses, those with 500 or more workers, let 61,000 workers go.  Medium-sized businesses, with between 50 and 499 workers, shed 93,000 jobs.  And small businesses, those with less than 50 workers, reduced payrolls by 100,000.  “The pattern of improvement in headline number is undeniable at this point,” Prakken said.  Private sector payrolls will continue to decline at a slowing rate for the next few months before modest job growth resumes “in the first few months of 2010,” he added.

MBA – Mortgage Applications down

The Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending September 25, 2009 decreased 2.8 percent on a seasonally adjusted basis from one week earlier.  On an unadjusted basis, the Index decreased 3.1 percent compared with the previous week and 44.3 percent compared with the same week one year earlier.  The Refinance Index decreased 0.8 percent from the previous week and the seasonally adjusted Purchase Index decreased 6.2 percent from one week earlier.  The unadjusted Purchase Index decreased 6.9 percent compared with the previous week and was 10.6 percent lower than the same period one year ago.  The four week moving average for the seasonally adjusted Market Index is up 3.9 percent.  The four week moving average is down 0.6 percent for the seasonally adjusted Purchase Index, while this average is up 6.8 percent for the Refinance Index.  The refinance share of mortgage activity increased to 65.3 percent of total applications from 63.8 percent the previous week.  The adjustable-rate mortgage (ARM) share of activity decreased to 6.2 percent from 6.7 percent of total applications from the previous week.  30-year borrowing rates were the lowest since the week ended May 22, at 4.81 percent, after hitting an all-time low of 4.61 percent in March, according to the industry group.  A year ago, before intensive government interventions, 30-year rates averaged 6.33 percent.

GDP revised upward

The Commerce Department’s final estimate has been revised to show that gross domestic product fell at a 0.7% annual rate instead of the 1.0% decline reported last month.  Analysts had forecast GDP, which measures total goods and services output within U.S. borders, slipping at a 1.2% rate in the second quarter after dropping 6.4% in the January-March period.  According to CNBC, this will probably mark the last quarter of decline in output for the U.S. economy, which slipped into recession in December 2007.  The economy is believed to have rebounded in the July-September quarter.  With the second-quarter contraction, the country’s real GDP has shrunk for four straight quarters for the first time since government records started in 1947.  Consumer spending, which normally accounts for over two-thirds of U.S. economic activity, fell at a 0.9 percent rate in the second quarter—smaller than the previously estimated 1.0 percent decline.  Spending rose at a 0.6 percent rate in the previous quarter.

Multifamily sector hardest hit

According to commercial mortgage-backed securities (CMBS) and commercial mortgage information provider Trepp, the multifamily sector looks poised to post the worst performance of any major commercial property type this month, and delinquency levels in office and hotel properties are likely to come in “sharply” higher in September.  Credit-rating agency Realpoint noted that multifamily properties came in second only to retail delinquencies.  4.8% of the total multifamily outstanding balance was delinquent in August.  The total delinquent unpaid balance for CMBS rose to $28.16 billion in August from $25.68 billion in July, marking a 592% increase from the previous-year period and nearly erasing July’s $2.97 billion recovery from the June ‘09 12-month high.  3.47% of the $811.4 billion of unpaid principal balance for all CMBS pools was delinquent in August, up from 3.1% in July but slightly below June’s high of 3.5%.

Manufacturing down – slows stock rally

The Chicago Purchasing Managers Index, which is considered a precursor to the national Institute for Supply Management index to be released on Thursday, fell to 46.1 in September instead of  rising to the 52 that economists expected.  While GDP is up, the Chicago PMI data is fresher and therefore more troubling than the GDP reading.  And it reminded investors that the economy still has major obstacles to be overcome before a solid recovery can occur – driving a 100 points plus decline in the DOW as of this writing.  In the first hour of trading, the Dow fell 1.2 percent, Standard & Poor’s 500 index dropped 1.2 percent, and the Nasdaq composite index 1.2 percent.

Now on to our real estate educational section…

What’s Safer – Short Sales or Your Pension Plan?

They told you it would be safely set aside for when you needed it most; Guaranteed by the backing of Good Old Uncle Sam via the Pension Benefit Guaranty Corporation…another quasi-government entity that is ready to petition for their very own version of a big bail-out. You spent the best years of your life waiting for that money to mature only to learn it may not be there after all…or even if it is, you may be required to pay more in taxes, have access to fewer benefits or fight against the ravages of inflation. So, what is really safer…short sales or your pension plan? Let’s examine the facts to find out why relying upon a pension may not pay off in the long run.

1. The  PBGC – Pension Benefit Guaranty Corporation – has been underfunded each and every year since 2002. Remember, this is the main entity responsible for “making good” on pension plans when a corporation goes bankrupt.  Unfortunately, the downturn in the economy has resulted in the largest single short-fall in the history of the PBGC…in addition to the multi-year deficiency. In fact, experts predict it is a matter of months before the PBGC will be forced to petition congress for financial support. Can you count on them to be there when you need it?

High income earners are at even greater risk…if the PBGC is forced to take over your pension plan it already has a cap in place limiting payments to only $54,000 per year to anyone 65 or older – no matter what your original pension might have been!

1. Companies are cutting back, filing bankruptcy and attempting to reduce long-term obligations in any way possible just to remain afloat. Take a look at General Motors. How long can you count on your company to remain viable in a rapidly changing global economy in the midst of a total melt-down? Are you willing to bet your golden years on their ability to remain profitable for ten years? Twenty years? Longer?
2. Too many eggs in one basket. Earning a living is getting harder every day so why place all your eggs in one basket? It’s bad enough to lose an income but even worse to face unemployment lines and a loss of a pension plan should your company meet with an early demise. Remember, even if they stay in business but simply restructure debt, it could potentially impact your financial future.

On the other hand, short sales are directly under your control. They do not rely upon big bail-outs, government intervention or even the whims of investors other than those you deal with directly. Short sale real estate allows you the opportunity to diversify outside of your company by retaining access to an income stream outside of that associated with your place of employment…but without taking on more time away from home. Finally, short sales are able to fit your needs now…not ten, twenty or even thirty years or more into the future. If your situation changes – sell. Need additional write-off’s…hold for awhile. The choices and versatility afforded by short sales are nearly endless compared to dealing with a pension plan where the rules of the game can change before you are able to act on new information.
See you at the top!

Chris McLaughlin

http://www.shortsalesriches.com

**************

Copyright Loss Mitigation Institute LLC 2009.

All Rights Reserved.

http://www.shortsalesriches.com
http://www.shortsalescoach.com
http://www.sixfigurebpo.com
http://www.reomillionaireclub.com
http://www.youtube.com/shortsalesriches

* Follow me on Twitter: http://www.twitter.com/mclaughlinchris

************

YOU MUST SEE THIS!  The move celebrated real estate

investing movie of the year:

http://www.housewarsmovie.com

Investors – tired of losing your short sales and REO

flips to 30 day seasoning rules… or the deal dying

on the vine when it takes too long to close?

And, you’re locked out of an important group of buyers -

FHA – because you have to own the property for 90 days

before you can resell it!

Now we have a solution to all these problems, which have

left too many investors high and dry.  And it all begins

at 8PM ET, 5PM PST tonight!

Prepare yourself to become a Jedi Knight of the Real

Estate flipping wars… and get the keys to kingdoms

of wealth!  Because with this system, you’re going to

make more money than you ever dared dream possible…

https://www1.gotomeeting.com/register/120998464

************

House prices up for the month, down for the year

S&P/Case-Shiller composite index of house prices in 20 metropolitan areas rose 1.6 percent in July from June — more than triple the estimate of a 0.5 percent rise found in a recent Reuters poll.  The monthly price increases helped the annual rates, with the yearly pace of declines in home prices slowing to a 12.8% drop in the 10-city index and 13.3% downturn in the 20-city index.  “These figures continue to support an indication of stabilization in national real estate values, but we do need to be cautious in coming months to assess whether the housing market will weather the expiration of the Federal First-Time Buyer’s Tax Credit in November, anticipated higher unemployment rates and a possible increase in foreclosures,” said David Blitzer, chairman of the index committee at S&P.  Despite the overall improvement, annual rates for all metro areas and the two composites remain in negative territory, with 14 of the 20 metro areas and both composites in double digits, S&P said.

Tax credit lures nearly half of all first-time buyers

According to a survey conducted by Harris Interactive on behalf of Zillow.com, 18% of prospective first-time homebuyers said extending the credit from Dec. 1, 2009 to Nov. 30, 2010 would be the “primary influence” in their decision to purchase a home.  An additional 25% said it would be a “significant influence,” 27% said it would have “some influence,” and 31% said it would have “no influence.”  Zillow projects 1.86m homebuyers stand to take advantage of the program if it is extended, and if all potential buyers took the full tax credit, extending the program could cost $14.86bn.  Zillow.com chief economist Stan Humphries said of all homebuyers expected under the 12-month extension through 2010, only one in five homebuyers will enter the market specifically because of the extended tax credit.  In other words, 334,000 mortgages will open because of the tax credit extension.  “While 334,000 may seem like a small number relative to the total number of homebuyers who would claim the credit, their addition to the market next year could make the difference between a robust annual increase in home sales next year and a flat or negative change in home sales relative to this year,” Humphries said.

Treasury to fund Housing agencies

According to Treasury officials, the US Treasury Department is in discussions to finalize a program to provide liquidity for state housing finance agencies (HFAs), like the New York State Housing Finance Agency, which originates mortgages for low and moderate income borrowers.  Treasury will also sell mortgage related bonds to keep liquidity flowing.  Details on the Treasury’s program may arrive as soon as this week.  The program is part of an initiative announced in February within the Homeowner Affordability and Stability Plan.  The program would be implemented through mortgage giants Freddie Mac and Fannie Mae.  “The Administration will work with Fannie Mae and Freddie Mac to support state housing finance agencies in serving homebuyers,” the Treasury said in February.

Delinquencies rise

Fannie Mae says that delinquencies on loans accelerated and its mortgage investment portfolio stayed unchanged in August from the previous month.  Delinquency on loans in its single-family guarantee business jumped by 0.23 percentage points to 4.17 percent in July, the most recent data available, and multifamily delinquencies also rose, up 0.05 percentage points to 0.56 percent in July.  The mortgage investment portfolio was at $779.4 billion in August, for an annualized 1.5 percent decrease year to date.

Oil down

Weak demand and rising inventory in the United States dropped oil below $66 a barrel today.  As of 1305 GMT, U.S. crude futures fell $1.01 to $65.83 a barrel after rising 82 cents on Monday.  North Sea Brent crude futures fell 65 cents to $64.89.  Prices have remained at the bottom end of a $65-$75 trading range in place since around July.  A Reuters poll showed that U.S. crude inventories rose 500,000 barrels in the week to September 25, and many analysts expect increases in crude and fuel inventories in the United States, the world’s top energy consumer, to continue.  “Crude will continue to move according to the stock markets and inversely to the dollar, which will remain weak,” said Tony Nunan, risk manager at Mitsubishi Corp in Tokyo.  Of course, all of this may be out the window, depending on Iran, which is unveiling new nuclear fuel facilities, firing test rockets, and threatening its neighbors…

Consumer confidence down

The Conference Board, a New York-based business research group, said its Consumer Confidence Index fell to 53.1 in September from an upwardly revised 54.5 in August.  Economists at Briefing.com were expecting a reading of 57.  The index that measures consumers’ assessment of the present situation fell to 22.7 from 25.4. The expectation index, which measures consumers’ outlook over the next few months, dropped to 73.3 from 73.8 last month.  Lynn Franco, director of the Conference Board Consumer Research Center, summed it up:  “While not as pessimistic as earlier this year, consumers remain quite apprehensive about the short-term outlook and their incomes…with the holiday season quickly approaching, this is not very encouraging news.”

Now on to our real estate educational section…

Are You Living a Financial Fairy Tale?

Once upon a time, there lived a red-blooded American who was taught to study, work hard and save money in order to succeed. Assured that health, wealth and happiness would soon follow he set out to earn his way in the world with a blushing bride and bouncing baby by his side.

On the path to progress he found it increasingly more difficult to accommodate the ever changing workforce but thanks to modern machinery, his blushing bride was able to join him in the work force while leaving the baby with relatives. Their combined income was sufficient to take an annual vacation, send junior to summer camp and still have enough remaining for a few luxuries now and then.

But alas, all was not well in the land of the red, white and blue. Each year taxes took more of the combined household income while the cost of living continued to rise. The “tax free” date moved from March to April and eventually to the end of May before the average American began to earn money that would not go toward paying taxes.  The husband and wife worked harder than ever as they were forced to become more productive and do the job that used to take two or even three workers. Left to his own, Junior skipped school, didn’t do his homework and routinely got into trouble. The once happy household was left tired, tense and terrified of their financial future….but why? Simple. They failed to understand the changes taking place in the world around them.

Find out if you are living a financial fairy tale or truly understand the economic reality surrounding you and your family with these simple questions:

1. Do you have more than one source of income that is not based upon working for a living?
2. Are you financially dependent upon two or more people in the household earning an income in order to pay your basic bills and set aside funds for investing?
3. Do you regularly sit down and calculate the tax consequences of working over-time, accepting a promotion or other “wage increase”.
4. Are you properly positioned for defensive economic earnings should the government increase taxation or withholding on benefits like health insurance, 401k or other long term investments?
5. Do you regularly calculate the cost of inflation five, ten and even twenty years into the future when establishing your savings and investment goals?
6. Are you hedged against liability, lawsuits and the threat of loss for both your personal and private investments?
7. Do you understand the “need for speed” when it comes to investing in tough times? Remember, the time value of money changes…make sure your investment methodology does too.

Short sales can help you achieve financial self-sufficiency without working yourself into an early grave. It’s one of the last remaining avenues available to average Americans searching for sensible investments in uncertain times. Try out a free webinar and see for yourself!

Join us tonight at 8 PM ET, 5 PM PST:

https://www1.gotomeeting.com/register/120998464
See you at the top!

Chris McLaughlin

http://www.shortsalesriches.com

**************

Copyright Loss Mitigation Institute LLC 2009.

All Rights Reserved.

http://www.shortsalesriches.com
http://www.shortsalescoach.com
http://www.sixfigurebpo.com
http://www.reomillionaireclub.com
http://www.youtube.com/shortsalesriches

Follow me on Twitter: http://www.twitter.com/mclaughlinchris

************
Short Sales Taking Up Too Much Time?

Join us tomorrow (Saturday) when we reveal technology that makes

your life simple and your business able to handle much, much more.

How much more?  Imagine a technology that has:

Completely paperless short sale submission

Easily Fax short sale packages right out of the system

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Foreclosure mediation programs are ineffective: report

The National Consumer Law Center (NCLC), a nonprofit, says there is no data to suggest that foreclosure mediation programs have facilitated any substantial number of affordable modifications. NCLC, after reviewing 25 foreclosure mediation programs in 14 states, said the programs fail to impose any obligations on mortgage servicers. “Without the imposition of these obligations, it is unlikely that mediations will lead to fewer foreclosures,” the report said. “The programs we considered often lack mandatory rules and fail to impose sanctions for non compliance with what minimal rules exist.” NCLC has also pointed out a number of procedural flaws – such as not mandating analyses of loan modification alternatives and setting unreasonable procedural barriers – in mediation programs. The report, “State and Local Foreclosure Media Programs: Can They Save Homes?” reviewed foreclosure mediation programs in states including California and Florida. The report’s author, NCLC staff attorney Geoffrey Walsh, warned that mediation programs may never be effective if corrective measures are not taken. “If the programs continue to demand little or no accountability from servicers, they will likely go the way of federal efforts to control foreclosures that have failed as a result of relying on voluntary compliance by the lending industry,” said Walsh.

Housing industry to work with Cuomo to amend HVCC

The Home Valuation Code of Conduct (HVCC), which was introduced in May with the idea of preventing inflated home valuations, requires lenders to hire appraisers only through an independent appraisal-management company. Industry participants have been saying that the HVCC has hurt the industry instead of helping it, so far. The National Association of Realtors recently reported that 20% of its members claimed to have lost at least one deal due to low valuations on account of following the HVCC. Representatives of the housing industry met with New York Attorney General (AG) Andrew Cuomo this week to discuss amending the rules. Cuomo was instrumental in formulating the HVCC. Housing industry wants greater clarity on rules. Real estate professionals are scared they may violate the HVCC on account of misinterpreting the rules.”The HVCC does not prohibit interaction between housing professionals and appraisers,” said Bill Garber, spokesman for the Appraisal Institute, a trade group. “But it could state more clearly what it’s legal to do.” The industry has expressed optimism on the outcome of the talks. “The good news is they were very concerned,” said Jerry Howard, the CEO of the National Association of Home Builders, “and they offered to be part of the solution.” Howard said the lead attorneys from the AG’s office agreed to join with a “summit” of industry representatives next month, in which the details of the HVCC will be refined.

Analysts say job growth is critical to housing recovery

The unexpected drop in existing home sale in August shows just how uncertain housing recovery is. “The market’s incredibly fragile,” says Mark Zandi, chief economist at Moody’s. “As long as job losses are rising, the housing market is at risk of continuing along a decline. Any recent stability would be in danger.” The Commerce Department reported yesterday that new jobless claims dropped in the week ended September 21. While that is a good sign, analysts say that jobless rate has to decline significantly for housing to recover in a sustained manner. “The market’s been somewhat stable here but job losses would put the breaks on a recovery very fast,” said Cindy McClellan, a real estate broker. Currently, interest rates are favorable to homeowners; but analysts say low interest rates alone are insufficient. “They’re not enough,” said McClellan. “If you don’t have a job, lower rates won’t help you get a home or sell yours.”  Foreclosures, because of job losses, will push prices down and hurt sales. “What are the drivers of housing? One is jobs and income,” said Frank Nitschke, director at CW Capital. “You need a rebound in jobs and income to have sustainable rebound in housing.”

Orders for durable goods unexpectedly drop in August

According to data from the Commerce Department, orders for durable goods excluding transportation equipment, dropped 2.4% in August, the second decline in 3 months, after increasing 4.8% in July. Economists expected a 0.5% increase, according to a survey by Thomson Reuters. Orders excluding transportation equipment were flat. Demand for aircraft, which is known to be volatile, dropped 42% in August after rising 98% the prior month. Automobile orders increased 0.4% after a 1.6% gain in July. Companies cut inventories of durable goods by 1.3% and total shipments dropped 1.4%, the most since May. Curbs in consumer spending and excess manufacturing capacity mean companies will probably not increase investment in new plants or equipment in coming months. “We expect capital spending during this economic recovery to underperform,” said Jan Hatzius, chief U.S. economist at Goldman Sachs. “Few businesses will step up capital spending sharply unless they see a meaningful improvement in end demand.”

Small businesses express optimism about the economy

A survey conducted by Chase Card Services, the credit card division of JPMorgan Chase, says small businesses are optimistic about economic growth over the next 3 to 6 months. About 80% of the survey participants said they are pursuing moderate or aggressive growth strategy. Only 5% said they are not looking to grow business aggressively. About 49% of the small businesses said they were adding job positions, and 29% said they were not adding jobs but were hiring to upgrade talent. Fifteen percent of the companies said they had a hiring freeze, and 5% said they were cutting staff. The survey included 168 chief and senior executives from the annual Inc. 500/5000 list of fastest-growing small companies. Companies participating in the survey must have had revenues of at least $200,000 in 2005 and at least $2 million in 2008. “There’s certainly a bit of light on the horizon,” said Richard Quigley, president of Ink from Chase, a new suite of cards designed for small businesses. “We’re not home yet but it’s certainly going in the right direction.”

Now on to our real estate educational section…

Gotta-Have Life Hacks & Cool Tools

Improve productivity and take your short sales to the next level with these gotta-have life hacks. They are cool, innovative time savers designed to grab attention and get results.

PrintYourLife.com – Send and receive real postcards via your iPhone for only $1.29 (including postage!). Take a photo, write a short message and select the recipient. Make first contact with potential sellers, send a courtesy reminder to your favorite appraiser or use in dozens of other unique ways.

Alice.com – Buy cleaning supplies and other households goods direct from the manufacturer. Free shipping direct to the door at the lowest price. Still in beta.

Runmyerrand.com – Tap into a personal concierge service by purchasing “credits” to pay selected “runners” to perform basic errands for you. Dropping off donations to charity, picking up paperwork across town or swinging by to take photos of your newest short sale property are mundane but necessary tasks better left to others. Most are tax deductible making it even more cost effective to remain focused and productive.

Legacy Locker – This is an idea whose time has come and one every short sale investor will appreciate; store details for each and every online account (secure and non-secure) in one central place. In the event of death or disability Legacy Locker acts like a virtual safety deposit box for virtual assets.

Spareground – List or search for extra space courtesy of several new sites designed to give a new lease on old space. Spareground.com, homestie.com and storeatmyhouse.com each provide slightly different slants on vacant space.

Mingle360.com – The Mingle Stick might sound like some type of dating device but in reality it is hard-core business technology; a single button device that is easy to use and small enough to take anywhere, the Mingle Stick serves as an electronic business card. Combined with “Digital lifestyle lubricants” its becoming easier than ever to stay connected and coordinated while on the go.

TechCrunch50.com and Yammer.com – Have a quick business question? Tap into serious solutions courtesy of the same executives that brought you Paypal, Ebay and other popular websites. Think of it like Twitter for entrepreneurs. A great way to keep in touch with your own small crowd or use the wisdom of the masses while on the go.

Insinger.com – Private banking by shoebox. This is not standard banking but rather upscale service for those short on time. Simply drop any financial related task into the secure box and it will be handled for you; from paying bills, filing tax returns or financial planning it is as hassle free as banking can possibly be.

Fongenie.com – Small business ventures of any size will sound like a million thanks to Fongenie.com; select an automated response, customize menus and even advanced data mining allows investors to tap into professional tools for a fraction of the cost.

Tenanttxt.com – A simple solution for keeping tenants, repairmen and others informed about maintenance and repair issues, community events or much more. Customize to fit your communication needs including auto-responders, email, text messaging or several other desired alert choices.

See you at the top!
Chris McLaughlin

http://www.shortsalesriches.com

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