Kirk Mulhearn

Long Beach, Ca. Well, if we could just isolate all the bad prisoners and put them in a place that has high walls, surrounded by machine guns and moats, extra guards with tear gas we just might be safe....in the current financial world and credit crisis, that high security prison would be the new, BAD BANK. I really like that name, it sounds cool and dangerous. And who do you think would be the CEO, Shaft? Just kidding.

President Obama may appoint the FDIC to run a "Bad Bank" which will buy the toxic assets that are clogging up bank balance sheets, in hope that it will subsequently free up lending. The FDIC would probably issue guaranteed bonds to finance the undertaking. Stocks around the world are rallying off of the news that this plan may finally be the answer in solving the credit crisis. After all, in the early 90's the RTC was created for all of the failed Savings and Loans. It did work then and has a strong possibility of working again. However, George Soros seems to think it is a bad idea. "That (the "bad bank" proposal) will help relieve the situation, but it will not be sufficient to turn it around," Soros said during a live interview at the Davos economic conference in Switzerland. Instead, Soros said he would create a "good bank" and re-capitalize the good assets. He admitted his alternative plan is not likely to get support because it too closely approaches nationalization. "The political will to do that is not there," Sorry George, remain in Europe please.

Follow the link to continue reading this article:

http://www.longbeachrealestateandloans.com/the-long-beach-mortgage-report-bad-bad-bad-bank-plus-fed-embraces-loan-mods

Long Beach, Ca. With all the news about the recent layoffs, there is no holding back by home buyers in the local Long Beach real estate markets if the price on a listing is reasonable. Inventories for certain areas of REOs on the market have diminished. The current trend is Short Sale listings. Remember that there are approximately 50 million mortgages outstanding and a full 10% of them are in default. That means that one out of every 10 neighbors is probably feeling the stress of the new economy. There are lots of short sale properties avialable at more affordable prices; but, not not as many agents that understand how the process of getting the property accepted by the lenders.

Yesterday we had some interesting economic news. The Conference Board's Leading Economic Index rose .3%, which is the first gain in six months. Four of the 10 indicators the report were positive, unfortunately led by a 0.99 percent increase in the money supply adjusted for inflation, which is due to increased lending and purchases of securities by the Federal Reserve to unclog credit markets and ease borrowing costs. We also had Existing Home Sales unexpectedly rise 6.5% in December, mostly attributed to prices being down and a brisk market in foreclosures.

You may continue reading this article at: www.longbeachrealestateandloans.com

Long Beach, Ca. Now for some good news. Sales of existing homes rose 6.5 percent from November to December, closing out the worst year for the U.S. real estate market in more than a decade, an industry trade group said Monday. The National Association of Realtors reported that sales of existing homes rose to an annual rate of 4.74 million in December, from a downwardly revised pace of 4.45 million in November. December's sales had been expected to fall to a pace of 4.4 million units. according to Thomson Reuters. For the full story you can go to: http://www.cnbc.com/id/28854489

To continue reading this article go to: http://www.longbeachrealestateandloans.com/

Long Beach, CA. Recently, Housingwire.com, a web based real estate site covered the big story that Fannie Mae announced earlier this month that they would allow renters to stay in their homes after the foreclosure process has been consummated.

Potentially homeless and hapless ex-homeowners would have a few options including:

"Cash for Keys," wherein they would receive a lump sum of money to leave the house in tact, broom swept, and trashed out. Normally, banks pay between $2000.00-$4000.00 to get people out of the property. This helps the banks market properties because they can easily be shown when they are vacant.

The article is continued at: http://www.longbeachrealestateandloans.com/

1. Property values don't always go up.

2. Use common sense when buying anything. If you don't have common sense, borrow it from someone who does.

3. Be prepared for the worst case scenario. Assume it will happen and make sure you are ready.

4. Talk to a CPA and a bankruptcy attorney before you, "let the house go back to the bank."

5. Understand how the banking system really works by watching the classic, "Money as Debt."

7. Explore the Loan Modification process only with an attorney that knows what he is doing.

Long Beach, Ca. Following the current equity markets and correlating them to the fact that real estate foreclosures are up over 80% this year over last is like watching a slow moving train wreck happen in real time. The first sound of crunching metal on the rail lines could be heard back in the fall of 2006. Yes, almost two and one half years ago, we began to fill the pinch first in the mortgage markets and credit crunch and then soon after in the real estate markets. I began to avidly watch: The Mortgage Ledger's mortgage implode-o-meter. You can follow this link to see all the banks that have failed since the Fall of 2006. To continue reading this article, which is full of many other priceless nuggets of golden wisdom, go to: www.longbeachrealestateandloans.com