Real Estate News & Commentary by Chris McLaughlin, June 18, 2009
http://www.shortsalesriches.com
“2 Careers That Boom in a Recession!”
I’ll tell you about one of these for fr*ee
in my no-charge, no-cost, no-obligation
webinar right here live tonight at
8:30 PM ET, 5:30 PM PST:
https://www2.gotomeeting.com/register/502677691
Why would I do that for no charge? Because
I want a chance to tell you about the other
high-income opportunity, too.
And I can’t do it in an email.
But if you’re finally ready to blast out of
this economic mess, then get a move on… I’d
hate for you to miss out, because we always fill
up a day or so early. See if there’re any spots left:
https://www2.gotomeeting.com/register/502677691
Homeowners’ association can foreclose homes for nonpayment of dues
Have you been making timely payments to your homeowner association? If no, you may lose your home. There are more than 59 million people living in over 300,000 association-governed communities nationwide. Homeowner associations typically have the foreclosure clause in the purchase agreement signed by homeowners. Many associations have mandated external agencies to collect dues from homeowners, and collection agencies say they go about doing their job in a professional manner. Andrew Schlegel, executive vice president for Merit Property Management, which manages more than 140,000 community homes in California, said: “No one wants to do this. It’s only coming up when people are completely obstinate about it.” Schlegel said about 6% of homes his company manages have membership dues this year, up from 1% in the previous years. According to Foreclosure Listing Services, homeowner association initiated foreclosure attempts in Texas are up 30% now from 2 years ago. Bob Tankel, an attorney who represents homeowner and condo associations in Florida, says about 20% of the cases which had payment dues to his client associations have reached foreclosure. “We have compassion for those folks. At the same time, we feel for the rest of the homeowners who are paying their dues,” said Schlegel.
Unemployment insurance rolls drop sharply
The Labor Department said today that the total jobless benefit rolls for the week ending June 6 dropped to 6.69 million. This is the largest drop in more than seven years. Prior to this, there was a string of 21 continuous increases in unemployment insurance rolls. New claims for benefits rose by 3,000 to a seasonally adjusted 608,000 in the week ending June 13. Continuing claims data lags initial claims data by one week. Experts say it’s not clear whether recipients of unemployment insurance are finding new jobs or simply using up all their benefits, which typically last 26 weeks. “It is unlikely that new hiring has picked up in any meaningful fashion,” said Joshua Shapiro, chief economist with MFR Inc., a consulting firm “More probable is that long-term unemployed are starting to fall off the rolls.” A net total of 6 million jobs have been lost since the economic downturn began in December 2007. The Labor Department said employers eliminated 345,000 positions in May, about half the monthly average of jobs lost in the first quarter. The Labor Department data indicates that unemployment is easing.
The Office of Thrift Supervision is on the chopping block
President Obama has proposed to merge the Office of Thrift Supervision (OTS) with the Office of the Comptroller of the Currency. The OTS, which is responsible for regulating thrift institutions, has been criticized as being ineffective during the credit crisis. The government plans to abolish the federal thrift charter that OTS enforces. “The fragility of thrifts has become readily apparent during the financial crisis,” the government said yesterday in a statement. “Eliminating the thrift charter is one of the most important steps towards a more prudent, efficient financial regulatory system.” Thrifts are required to channel most of their lending to housing-related activities and the industry is concerned about the impact of doing away with OTS. “The vast majority of OTS-regulated thrifts have done a great job supporting housing,” said Chris Cole, senior regulatory counsel at the Independent Community Bankers of America. “We think the merger could have some impact on housing lending.” Jim Wheeler, a financial institutions partner at law firm Bryan Cave, said: “Losing the OTS would be a mistake.”
Ten banks repay TARP funds
Banks have received over $700 billion under the Troubled Asset Relief Program (TARP) so far. Consequent to the government allowing 10 banks to return TRAP funds last week, those banks have started repaying TARP funds, indicating that they are strong enough to remain without bailout funds. JPMorgan Chase has repaid $25 billion, while Goldman Sachs and Morgan Stanley have repaid $10 billion each. Other banks which have made the repayment include U.S. Bancorp, Capital One, American Express, BB&T, Bank of New York Mellon, State Street, and Northern Trust. In total, banks have repaid $68 billion so far. Banks issued both preferred stock and warrants for receiving TARP funding. In addition to buying back preferred shares, banks are looking at buying back warrants, the pricing of which is yet to be finalized. The Treasury Department has said that banks can buy back the warrants at “fair market value.”
Eddie Bauer files for bankruptcy protection
The retail industry has been in turmoil with chains such as Mervyn’s, Steve & Barry’s, Goody’s and Gottschalk’s filing for bankruptcy in the recent past. Now Eddie Bauer, a chain with 371 stores, joins the list by filing for Chapter 11 protection in Delaware. The company has been struggling to repay its debt due to a decline in its sales on account of economic downturn. Its cost-cutting and restructuring initiatives couldn’t prevent bankruptcy. “Eddie Bauer is a good company with a great brand and a bad balance sheet,” said Neil Fiske, the company’s chief executive. Eddie Bauer plans to sell itself to CCMP Capital Advisors, a private equity firm for $202 million. CCMP Capital Advisors has said it does not want to strip the company’s assets. “We’re not looking to liquidate the company or close most of the stores,” said Jonathan Lynch, a CCMP managing director. “We’re trying to help 8,000 employees save an iconic American brand.” The company will continue with its operations pending court’s approval for the sale.
Now on to our real estate investor education section…
Have You Been Brainwashed for Failure?
If you have been sitting on the sidelines or secretly reading about short sales without taking action it’s time to ask why. After all, interest rates are low, experts agree inflation is likely to rear its ugly head and people are making big profits…what has kept you on the sidelines this long? Could it be you are a victim of brainwashing? Before you think it could never happen to you, take time to read and reflect on how well intentioned people may have inadvertently programmed you for financial failure through the same techniques used by military agents and others.
Breaking You Down. How many times have you been told things like “money doesn’t grow on trees” or “if it were easy everyone would do it”? Of course, these statements have an element of truth but the underlying assumption is one that forces people to accept the status quo as ‘normal’ rather than expect more. Plain and simple, most people simply lose that element of hope, inspiration and excitement they had as children. Worse, those of you exposed to toxic parents or negative spouses have likely been told you are a dreamer or acting childish to become exited or have high hopes. Sound familiar? Keep reading…
Offering a Solution. The next step in brainwashing – intentional or not – is to
offer a solution. Once you have accepted that there is a problem with the way you think or how you perceive a situation the person steps in with a solution. The solution to financial worry has been to work hard, go to college, get a good job and retire with a pension. Of course, those facing a lifetime of working at Walmart may have different ideas in mind for how to build a life of success and opportunity – after all, this isn’t exactly your grandfather’s version of a gold watch for retirement. No dear reader, the days of GE and a gold watch at retirement are long gone.
Build-Up. Once you have accepted the status quo and are ready to adopt their plan of action for your life the final step is put into place; now you must go out and actually join them in proclaiming the obvious truth to everyone else that will listen. So, not only do you trade in a life you would have loved for one filled with 30 to 40 years of drudgery and deceit, but you begin to tell your own children (and anyone else that will listen) it is the only way.
But…what is it isn’t the only way and what if you really could have it all? What if you could wake up in the morning to a life of your own creation with enough cash to do what you love? What would you tell your children is the best way to live their life…spending 12 years in school and another 4 to 10 in college to rack up student loans and spend 30 to 40 years working a job they detest? Find out if you have been brainwashed for failure with these simple questions – be honest!
Do you get excited over the possibilities afforded by your current job and lifestyle?
Do you enjoy showing others how to discover their own dreams and aspirations?
Do you wake up invigorated and ready to begin a new day with the expectation each day will be better than the former?
Do you persuade others to think big?
Do you feel silly sharing your hopes, dreams and aspiration for fear of rejection
and ridicule?
Do you feel frustrated when others want to try something new, daring and even a bit outrageous?
Do you feel shame for secretly not accepting the status quo?
Do you feel like a fake?
Do you sometimes wish you could just escape and start over?
Are you ready to stop handcuffing your success and start living? If so, it’s time to toss the shackles of self-doubt and begin thinking for yourself once again.
See you at the top!
Chris McLaughlin
http://www.shortsalesriches.com
PS:
“2 Careers That Boom in a Recession!”
I’ll tell you about one of these for fr*ee
in my no-charge, no-cost, no-obligation
webinar right here live Thursday night at
8:30 PM ET, 5:30 PM PST:
https://www2.gotomeeting.com/register/502677691
Why would I do that for no charge? Because
I want a chance to tell you about the other
high-income opportunity, too.
And I can’t do it in an email.
But if you’re finally ready to blast out of
this economic mess, then get a move on… I’d
hate for you to miss out, because we always fill
up a day or so early. See if there’re any spots left:
https://www2.gotomeeting.com/register/502677691
Copyright Loss Mitigation Institute 2009.
All Rights Reserved.
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http://www.reoempire.com (NEARLY SOLD OUT)
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
450 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
* Add me on Twitter: http://twitter.com/mclaughlinchris
* Add me on Facebook: http://www.facebook.com/mclaughlinchris
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