No Foreclosure Here !!!

3/27/2009

The widow of producer Aaron Spelling is placing "The Manor" in the exclusive Holmby Hills neighborhood on the market for a jaw-dropping $150 million, making it by far the most expensive home for sale in the U.S.

The French chateau-style mansion has 56,500 square feet of space on more than 4.6 acres and is the largest home in Los Angeles County. Among the neighbors are the Los Angeles Country Club and, not too far away, the Playboy Mansion.

Candy Spelling's late husband produced hit shows such as "Charlie's Angels," "Dynasty" and "Beverly Hills 90210." He died in 2006.

The three-story mansion, built in 1991, is gated and features a winding driveway that leads up to the three-story house, which includes ceilings that reach up to 30 feet high.

While some published reports put the tally of rooms in the mansion at well past 100.

Spelling says she doesn't know.

"You're really asking the wrong person," Spelling jokes. "There's a lot. (The house) has evolved and I actually haven't gone around and counted."

The Spellings found no shortage of uses for the many rooms in the mansion, however.

There's a bowling alley, wine cellar, wine tasting room, gift-wrapping room, a humidity-controlled silver storage room, China room, library, gym and media room, among many others.
The screening room is one of Spelling's favorites.

"I had some really wonderful times entertaining in that room," she said. "We showed movies and I still do."

The room features a movie projection system that automatically comes up from the floor at the same time that shades extend over the windows. It's an idea that came to Candy Spelling in dream as she sought to avoid having a projection screen open all the time.

"I wanted Aaron to have the best projection room anyone had ever seen, and the biggest, so I came with this solution, not realizing that we had to excavate a lot of dirt to get down that low, to have a special room that housed the screen that was totally dust free," said Spelling, 63.

The Spellings also finished the 17,000 square-foot attic that includes a barber shop and beauty salon.

The home also includes a wing for service staff, including a kitchen and seven bedrooms, and five fireplaces and four wet bars.

Lavish features also can be found outside the house, including a tennis court, fountains, a waterfall, a pool and spa, a reflection pool and a pool house with a kitchen, and 16 car ports.

The estate also boasts an 18th Century-style garden, a rooftop rose garden and a citrus orchard.
Prospective buyers won't have to worry much about parking when they host big parties. The property includes a winding motor court with space for more than 100 cars.

Spelling plans to trade her mansion lifestyle for a luxurious, two-story condo atop a residential tower in Los Angeles that she bought last year for $47 million.

"I have a lot of wonderful, wonderful, wonderful feelings about this house and special things that I went through in building it, with a love that you can't even imagine," she gushed. "Yet I feel like I'm moving on to a new chapter in my life."

Cram Down Measure Takes A Step Back

3/21/2009

Opposition from the banking industry and moderate senators of both parties has stalled a proposal to let judges modify mortgage terms in bankruptcy court.

The judicial maneuver, known as a "cramdown," is endorsed by President Barack Obama and the Democratic leadership as part of a sweeping plan to help strapped homeowners.

The cramdown issue has become a flash point for lawmakers who seek to aid homeowners -- in particular those who owe more than their house is worth -- and lawmakers who feel such aid penalizes people who have kept up with their debts.

With Congress due to start a two-week recess on April 6, Senate negotiators haven't been able to lure a handful of moderates to secure the 60 votes needed to clear a procedural hurdle and get the bill through the chamber.

Financial institutions strongly oppose court-ordered mortgage workouts, which could entail easing homeowners' payment terms by lowering interest rates or the principal owed. They say this would increase risks for lenders, raise mortgage rates and clog courts. Mortgages have long been excluded from modification in personal-bankruptcy filings.

Mr. Obama endorsed the idea as part of his broader housing plan, which includes both sticks and carrots to persuade lenders to rework troubled mortgages. The carrots come in the form of payments to servicers for modifying loans. Cramdowns would be the stick -- a financial penalty if lenders don't deal with a mortgage before a client files a bankruptcy petition.

The House bill is already substantially weaker than one crafted by senators several weeks ago. It limits cramdowns to existing mortgages; loans made in the future wouldn't qualify.

A Sign Of The Times

3/20/2009

From earning $750,000 a year as a hedge fund CEO to now earning $7.29 per hour as a pizza delivery man, Ken Karpman plummeted from a six-figure salary to now earning tips ..... Say it ain't so.

Having graduated from UCLA with a bachelor's degree and M.B.A., then got a high-paying job Karpman is now faced with credit card debts in excess of $100,000 and now losing his Florida home in foreclosure.

Karpman now delivers pepperoni and mushroom pies in a Mercedes 500 SL and states that "at some point you have to swallow your pride and put food on the table."

This story is a clear demonstration that no one is immune from our sinking economy.
WATCH THE INTERVIEW: Click on any of the pics in this story to watch an eye opening interview aired on ABC's Good Morning America.

Ken Karpman hard at work at Mike's Pizza and Deli Clearwater, Fl

VIDEO: Larry King on Foreclosures

Here's some insight on foreclosures today including what questions to ask a Investor Buyer, Loan Modification companies that do Nothing, and thoughts from BRAVO's Flippin' Out Star, Jeff Lewis, a self made flipping millionaire who bought, fixed and sold million dollar homes in Los Feliz, CA.

Click on the "Foreclosure Crisis" pic above to view .... Watch and Learn !

VIDEO: IndyMac Internal FRAUD Caught Red Handed

3/07/2009

The Truth Shall Set You Free .........

IndyMac gets caught with its pants down.

The allegations of fraud finally caught up with IndyMac and the lender now admits to BACK DATING legal documents costing YOU, the taxpayer, over 9 Billion dollars while internal bosses and regulators approved the fraud, sat back, and watched it all happen.

Now you to can watch it happen ......... Click on the Indymac Pic above and feast your eyes on this report filed by the Good Folks at Good Morning America.

The Lender Locked My Ass Out !

3/6/2009

Christian - Some jerk calling himself a "bank representative" showed up at my house and RE-KEYED my property. I called the police! What is going on in this world? I am NOT yet in foreclosure but I have missed the past 3 months mortgage payments. I called your office and a member of your staff asked me if I received a "N.O.D" [Notice of Default] or a Notice of Trustee Sale and the answer to both is NO. I haven't received jack from this lender. Can they just walk into my house and re-key it?

Christian's Response:

Calling the police was a GREAT move. Make sure you get a copy of the police report. Here's what you do....Call your Lender and advise them as to what just occurred then call an attorney. This lender has absolutely NO RIGHT to act in any manner even remotely close to what you described. I will not quote law. I will leave that to the professionals with a bar license. You are more than welcome to email me back or contact our office anytime but at this point.......call the lender and advise them that you are no dummy and they have violated about 98% of the laws written to protect a homeowner and furthermore, trespassed on to your property. Tell the lender the entire story. [Remember all calls to your lender are RECORDED.] Document the bank reps name and the time you called. Raise hell. Make your case over the phone with them. Remember the questions my office asked you about (N.O.D.) Once you've finished and you've heard what they have to say, let us know .........

Reader's Response and Follow Up:

Hi Christian, Thanks for responding back to me so quickly. Well, I contacted [lender's name] themselves and get this, the rep told me "what do you expect if you don't make your payments?" I retorted ...... Sorry but I know my rights, you are to inform me in writing if I am in default with a NOD. Have you filed a notice of default, I asked?

BAM! Suddenly this "smart" bank employee wasn't so smart and immediately changed her tune. She explained that the notice of default was filed last week and they called a guy in to check out the property and change the locks, if possible. Could you believe those scum bags. Then, to add further salt to the wound, the rep told me that I would need to speak with someone in their "short sale dept" to see if I "qualify" for a short sale. CAN YOU BELIEVE THAT!

Thanks to this site, I was ready and prepared for that one!!! [See posting "I Need The Banks Permission"] I told the rep. I didn't need to speak anyone. Just put it in your notes that I will be doing a short sale and you'll be receiving a short sale package from a firm I retained, Thank you!

Christian I feel GREAT! You have empowered me !!! It pays to educate people.

P.S. I found out that the guy they sent out to my house was in "property preservation." I called this fatso back as well. He told me that if the property is empty the bank has all the right in the world to come in and just take possession. I told him not to worry about it anymore, my attorney would be taking it from here.

House Ok's Bankruptcy "Cram Down" with Revisions

3/5/2009

Since lenders have no clue what they are doing and are floating by day to day with their heads firmly stuck up their ass, U.S. Judges just might come to the rescue.

Today, the U.S. House approved a broader/revised bill that would allow U.S. Bankruptcy judges to set a new prinicipal loan amount on loans issued to primary residences.

Before that can happen, homeowners would have to seek a loan modification from their lender and wait 30 days from the loan modification request in order to file for a Cram Down. Homeowners must also agree to share any profits if they sell the house within five years.

The legislation now would require the lender to get 90% of profits if the house is sold in the first year after the mortgage is revised in bankruptcy, 70% in the second year, 50% in the third year, 30% in the fourth year and 10% in the fifth year.

The revision was approved with a vote 234 to 191 and now heads to the Senate for an approval ...... God Willing ! Wake up lenders, you've made billions off the backs of the very same people you are now screwing.

Let's screw the homeowners even more by leaving them no choice but to file for Bankrutpcy in an effort to save their homes and gain lender attention. Sure, just leave it to the court system to figure out since the lenders don't know how to clean up the mess they created.

I Need The Banks Permission

3/3/09 Realtor Question:

Christian, a client made an offer on a house last year when the property was offered as a short sale. Nothing ever came of the offer. From what I heard the other agent had no idea how to do a shortsale. I guess from what I was told the listing agent asked the bank for permission before even sending in a package or anything. The bank responded back with "no." So the agent told my client sorry you can't do a shortsale. Now the family lost the house, has the burden of a foreclosure haunting them on their credit report and the home is now offered for sale as an REO.

My question: Does a Realtor need to ask the banks permission prior to submitting a short sale package ?

Christian's Response:

Take a look at the picture above ........ Let's all say it together ......... LOSER.

Shame, Shame, Shame on that Realtor. The Realtor needs to leave the business and check in at the nearest McDonalds. What a flat out stupid, low rate, degenerate. It's Realtors like that that gives everyone else in this business a bad name. It's lame ass licensees like this that make the lenders appear to be God's gift to our planet.

The Answer is NO, NEVER. You never ask a banks permission to lose money. Good Morning........

Hire a professional short sale Realtor and Loss Mitigator that has a record of successful short sale closings. A homeowners first question when interviewing a Realtor should be:

Provide me a list of how many short sale approvals you've had in the post 6 months? Most Realtors will piss in their pants as many are all talk and no action. They couldn't produce a short sale approval if their license depended on it.

The last time a homeowner asked my firm that question, we bundled together dozens of lender approvals from the top 10 lenders in the nation and emailed it to her in alphabetical order.

The homeowner signed the listing agreement with our firm that night without ever meeting with us in person or asking another question.

VIDEO: Wall Street - Executive Air

Now This Say's It All ..........

Click On The Cartoon Above and Turn Up The Speakers!

How Banks Are Worsening the Foreclosure Crisis

Reader's Question:

Mr. Arbid, why are you blaming the lending institutions for the foreclosure mess that we are in? The Reinvestment Act passed, I believe, in the mid 90s, is responsible and those in Wash. DC, in Congress, Barney Frank, Chris Dodd and others (read democrats) and those in charge of Fannie Mae (Raney at the time) are totally responsible for placing specific requirements to all lending institutions to allow the tremendous amount of sub-prime loans. I must say that even Bush proclaimed in his last year in office the need for more home ownership by those who "have been left out". John McCain did write a letter to Harry Reid (I read the letter) stating, basically, that we need to put a stop to these subprime lending practices. These loans were pushed through because of this law, albeit, the lending institutions weren't about to complain in the short term -- they got their money. This unrestricted lending was the result of this outrageous Act. The lending institutions knew that they could package these loans and pass them on to Fannie Mae, etc., who then packaged them and sold to everyone -- pension plans, etc., both in the US and internationally. It was this Reinvestment Act -- this outrageous idea that everyone should own a home regardless of creditworthiness that was responsible. The bubble did indeed burst. M.W.

Christian's Response:

The bad mortgages that got the current financial crisis started have produced a terrifying wave of home foreclosures. Unless the foreclosure surge eases, even the most extravagant federal stimulus spending won't spur an economic recovery. The Obama Administration announced an initiative of $50 billion or more to help strapped homeowners. But with 1 million residences having fallen into foreclosure since 2006, and an additional 5.9 million expected over the next four years, the Obama plan -- whatever its details -- can't possibly do the job by itself. Lenders and investors will have to acknowledge huge losses and figure out how to keep recession-wracked borrowers making at least some monthly payments. So far the lending industry hasn't shown that kind of foresight. One reason foreclosures are so rampant is that banks and their advocates in Washington have delayed, diluted, and obstructed attempts to address the problem. Industry lobbyists are still at it today, working overtime to whittle down legislation backed by President Obama that would give bankruptcy courts the authority to shrink mortgage debt. Lobbyists say they will fight to restrict the types of loans the bankruptcy proposal covers and new powers granted to judges. In public, financial institutions insist they've done their best to prevent foreclosures. Most argue that giving bankruptcy courts increased clout, known as a ― "Cram Down" (see additionals posts on this topic below), would reward irresponsible borrowers and result in higher borrowing costs. On the defensive, the industry nevertheless benefits from one strain of popular opinion that home buyers who took on risky mortgages -- even if the industry pushed those loans -- don't deserve to be rescued.

An Industry In Denial

However the skirmish ends, the industry‘s contention that it has done as much as possible to limit foreclosures seem hollow. Some statistics it cites appear to be exaggerated. Even pro-industry figures such as Steven C. Preston, a Republican businessman who headed the Housing & Urban Development Dept. late in the Bush Administration, concede that many lenders have dragged their heels. One program, Hope for Homeowners -- which Bush officials and banks promised last fall would shield 400,000 families from foreclosure -- has so far produced only 25 refinanced loans.

Meanwhile, an already glutted market sinks beneath the weight of more foreclosed homes. Borrowers whose equity has evaporated have nothing to tap into if the recession costs them their jobs. Some lawmakers and regulators are calling for a foreclosure moratorium.
In early 2007, as overextended borrowers began to default on too-good-to-be-true subprime mortgages, housing experts sounded an alarm heard throughout Washington. Christopher Dodd (D-Conn.), chairman of the Senate Banking Committee, wanted to push a bill requiring banks to modify loans whose enticingly low "teaser" interest rates soon give way to tougher terms. But he knew that with Republicans strongly opposed, he lacked the muscle, according to Senate aides. So Dodd did what politicians often do. He convened a talkfest: the Homeownership Preservation Summit. A who's who of banking executives gathered on Apr. 18, 2007, behind closed doors in an ornate hearing room in the marble-faced Dirksen Senate Office Building. Dodd told them they needed to get out in front of the foreclosure fiasco by adjusting loan terms so borrowers would continue to make some payments, rather than stopping altogether. Foreclosure proceedings typically cost banks about 50% of a property's value. That's assuming the home can be resold -- not a certainty when empty houses multiply in a neighborhood. Some from the industry denied a foreclosure problem existed, including Sandor E. Samuels, at the time chief legal officer of subprime giant Countrywide Financial. They vowed to continue selling loans with enticing introductory rates as well as those requiring minimal evidence of borrowers' income. "We are going to keep making these loans until the last second they are legal," Samuels later told a fellow participant. On May 2, 2007, Dodd's office issued a "Statement of Principles" stemming from the summit. It outlined seven vaguely worded industry aspirations, such as making "early contact" with strapped borrowers and offering modifications that could include lowering loan balances. The principles had no effect, some summit participants now concede. Much of Dodd's attention shifted to his campaign for the Democratic Presidential nomination. Senate Banking Committee spokeswoman Kate Szostak says Dodd aggressively pursued the foreclosure issue, but "both the industry and the Bush Administration refused to heed his warnings." The lawmaker accepted $5.9 million in contributions from the financial-services industry in 2007 and 2008. Asked about his role at the summit, Samuels confirmed in an e-mail that he "did speak -- formally and informally -- about the performance" of subprime loans. But he declined to elaborate. He now works as a top in-house lawyer for Bank of America, which acquired Countrywide in July 2008. By mid-2007, Bush Administration officials were deeply worried about the financial industry's unwillingness to confront the growing catastrophe. Even banking lobbyists say they realized that their clients had lapsed into denial.

That summer, Paulson, a former CEO of Goldman Sachs, summoned industry executives to the Cash Room, one of Treasury's most elegant venues. There, beneath replica gaslight chandeliers, Neel T. Kashkari, a junior Goldman banker whom Paulson had brought to Treasury, urged industry leaders to move swiftly to keep more consumers from losing their homes. Bankers know how to adjust interest rates, extend loan durations, and, if necessary, lower principal, said Kashkari, who has temporarily remained in his post. A couple of months later, Paulson summoned the executives again, this time to his conference room. "We told them we need to get over the goal line," recalls a former top Treasury official. "Cajoling is a euphemism for what we did. We pounded them." One product of the Treasury conclaves was the Hope Now Alliance, a government-endorsed private sector organization announced by Paulson on Oct. 10, 2007. Lenders promised to cooperate with nonprofit credit counselors who would help borrowers prevent defaults. Faith Schwartz, a former subprime mortgage executive, was then hired and placed in charge.

*** Portions of the above response were obtained by the Business Weekly publication.

Don’t Blame the Realtors ..........

While 1.7 million people in California are currently unemployed and while another 46,000 homes in Los Angeles County currently sit in pending foreclosure status, many homeowners now ask themselves - How did we get here?

It's becoming more and more often that you see all the fingers pointing in the direction of the Realtors and other professionals that work in the real estate industry. To all those that believe the Realtors are solely or in part responsible for the housing bubble gone wrong - try again.

While it is true that many fly by night Realtors jumped into the California real estate game with hopes of getting rich quick, it's simply inaccurate to rest the blame of a housing foreclosure bust on the backs of the Realtors. If there was any particular industry that is to be held responsible for the current economic crunch we now find ourselves in, that my friends can be chalked up to none other than the lending institutions. The fact remains that is was the credit and lending institutions that provoked and allowed this train wreck to occur. Lenders were handing out loans to every Tom, Dick, and Harry that lived, breathed, and could sign loan documents. Forget about that little thing known as employment and income. If you had good credit and could breath, you got yourself a loan! Many fell right into the trap. Congratulations, you just qualified to purchase a house! You too can achieve the American Dream! No one would tell you that your American Dream would shortly end up being your American Nightmare. "Don‟t worry about the loan interest rate and payment adjusting in a few years," many lenders told home buyers. Just refinance the loan once you get close to the expiration and by that time you would have tons of equity built up in your home.

Unfortunately, that much awaited and highly anticipated friend called "equity" never showed up at the front door step and those God afoul loans came due. Monthly mortgage payments of $2,000 jumped, in many cases, to $5,000 and $6,000 per month. Families caught flat out with their pants down and the lenders laughed all the way to the bank. Next time you wonder how it is that the housing bubble did finally burst. Just pick up the phone and call the banker that sold you your loan. That is, if he or she hasn't high tailed it to a foreign country or if their phone number still works. You might want to try reaching them in the Virgin Islands, if you don't mind disturbing them from their evening cocktail served beach side.

Historic Overlay My Ass et

Reader's Question:

A local resident is trying to persuade me to jump into this "Historic Preservation Zone" that some in the city are pushing. I live in an old "historic" home built in the late 20's and we are being encouraged to jump on the band wagon and classify my neighborhood as part of a historical area. A lady came knocking on my door and mentioned that this redistricting would be a good way to maintain my property value or maybe even increase the value of my home. What's your thought on this?

Christian's Response:

Read, please, you know better. If your idea of fun is essentially having an HOA present in your neighborhood, knock yourself out. Don't come crying when heaven forbid you want to change your front door, paint your house green, re-landscape your yard, or change a light bulb. Why on earth would anyone want to place restrictions on their homes and be told what you can and cannot do? If you wanted that lifestyle, one would most likely opt to live in a gated community and let others tell you what kind of rocks and plants to use in your front yard landscaping. Although, my remarks are merely my personal comments and thoughts on the topic, don't take it as gospel. It's just my personal feelings on the subject that you asked about. To each their own.

Listen, I own properties outside of LA with HOA's, CC&R's and other homeowner restrictions. When my wife and I purchased our Los Angeles area home, we purposely set out to avoid that type of choke hold. For that reason alone we did not purchase in an area that offered those restrictions but we had our eyes set in that general area. It gets real old, real fast.

So what if you want to remodel your bathroom? Hire a contractor, get the appropriate permits, and off you go. Good luck after you have that "Historic" zone classification.

As to increasing the value of your home, it's hogwash. Many of us unfortunately are about to take a nice financial bath. If your neighborhood becomes the next historic district then great for you. You can place a nice shinny plaque on your front lawn to which no one will really give two squats about. This new, shinny bronze plaque does make a lot of people feel very good as it gives them a feeling of self entitlement and bragging rights.

Oh please, move past the stucco and explore real life. There is so much more value in life other than roof tops and who's lawn is better contests. It's always interesting to listen to some historical homeowners speak. You just have to laugh from within. The grandeur to which they speak of. The glory of their beautiful and rare home. Oh please.

Bel Air, Beverly Hills, La Canada Flintridge you are not. Many of these homeowners should drive down portions of Descanso Dr, Chevy Chase, Highland, Commonwealth and Berkshire in La Canada Flintridge. Now there you'll find HISTORY and elegance by the truck load. Next time this lady comes knocking at your door and lays the line regarding increasing your property value, ask her for a copy of her California appraisers license and her psychic friends network membership card.

Once you get past that, remind her of the current 10,000 foreclosures a day that are occuring nationwide. If I were a betting man, I place my chips on a value freefall based on the mounting foreclosure filings killing property values. Unfortunately, no city designation or bronze plaque will save you from the declining real estate market we are now facing.

My Heart Breaks .............

I have some very sad and depressing news to report. My heart is broken.

Citibank was denied possession of their recently ordered Falcon 7X Jet. The purchase was consummated in 2005 and reflected a price tag of $50 million dollars. How can life for Citibank Execs continue? I extend my deepest, heartfelt condolences. Maybe they can skimp by with the remaining FIVE jets they currently own. Nevertheless, Citibank is crying over its "lost deposit" but fails to remind the public that they can recover the deposit when the jet is re-sold. Don't worry, maybe Bank of America can pick up the pieces and add this 50 million dollar Falcon to their existing fleet. Why not? It makes pure sense. Might as well use the government bailout for something rather than squatting on it.

Wall Street Sucks As Well ..................

Wall Street is no better.

A report dated January 29, 2009, exposed the truth about the "shameful" executives that work on Wall Street.

It was discovered that while Americans take a financial bath and get cleaned out of house and home, Wall Street Execs took home an EXTRA 18 BILLION Dollars in Bonuses during 2008.

President Barack Obama says it is irresponsible and shameful for Wall Street bankers to be paid huge bonuses at a time when the American public is dealing with economic hardship.

President Obama continued, "That is the height of irresponsibility. It is shameful."

Hey Lenders, Cram This ..............

Attention all financially hurt and distressed homeowners:

Boy do I have some good news for you this week!

A House committee voted to pass a measure that would allow bankruptcy judges to alter the terms of mortgages on primary residences. Known as a "CRAM DOWN," a bankruptcy judge may be allowed to reduce your principal mortgage balance and monthly mortgage amount if this proposed legislation gets the final stamp of approval. Although we are not licensed attorneys, we are in the business of foreclosure prevention, so I thought we'd pass this one along.

Hmmm, funny how this wasn't headlined on newspapers or blasted all over CNN news.

In my opinion, this is a move in the right direction since lenders today are not only blind but also deaf. It is clearly apparent that lenders are not qualified to fix a disaster they created. So, why not hand it off to a capable unbiased judge that will? Nothing like having a neutral, third party judge that can see right past all the schemes of the banks and false hopes the banks continue to offer distressed homeowners. Leave it to the lender's of today that force a false set of requirements that distressed homeowners must "qualify" for (i.e. Loan Modifications) but then carry an entirely different set of rules and standards for themselves (i.e. Private Lear Jet Clubs and Million Dollar office remodels) while half our country goes broke. They must have learned this technique from the State of California where tax payers must pay their tax bill but, heaven forbid if the state owes you money, they'll just hand you an I.O.U.

By 2013 - 15% of ALL Homes Will Be in Foreclosure

That's right! You read it correctly. It has been forecast that 8.1 million mortgages will be in foreclosure over the next four years. This represents over 15% ALL mortgages in the United States. This is a staggering number. Despite some initial signs that foreclosures were near a plateau, the combination of a continued decline in home prices and a severe downturn in the economy has almost ensured a continued surge of foreclosures.

During the past 30 days, we have see nothing but an up hill swing in mortgage default filings and pending foreclosure actions. As a foreclosure prevention company that assists homeowners, we were enthusiastic during this past Holiday season as we began to see a slight decrease in pending foreclosures. Unfortunately, that trend sharply ended. In every geographic area we study, we come across a variety of distinct reasons why homeowners walk away from their homes.

In Palm Springs and the Desert area, we find that the number of foreclosures are caused by backpedaling real estate investors and so called Flip's gone bad. Homes purchased by speculation. Not so in Glendale. One of the biggest concerns we continue to hear over and over from Glendale homeowners is not that they are unemployed. It's not that they had a mortgage rate adjustment. It's the fact that many local homeowners owe more than what their home is currently worth. Many struggle with the question of why should they hold on to their million dollar mortgage when their home is now worth seven hundred thousand (for example). Many ask themselves, Why should I continue paying a $6,000 per month mortgage payment when I could rent a home in Glendale for $2500? Often times we find that Glendale homeowners have money, they just wonder why they should continue to spend it on a piece of upside down real estate that shows no sign of recovery. They see no light at the end of the tunnel.

Together and with the assistance of narrow minded, bottom feeding, vermin (a.k.a. the lending institutions), many homeowners have simply lost hope. There is no doubt that we are in a slump and times will undoubtedly get tougher. There is no doubt that lenders should be held responsible for the majority of the mess we are experiencing. Lenders bank rolled themselves and lined their pockets with truck loads of cash when they sold home buyers their loans, then turn around and write off losses and cry bailouts as they clean your clock and dump those very same customers curbside like yesterday's trash. They loved you when you signed your loan documents, then they drop you like a bad date after the ink was dry.

Try to rise above the greedy lenders as they do not know better. A recent study showed that most bank "customer service" reps that answer the 800 phone number you dial have a high school level education. Many can barely add without the help of a calculator. That "supervisor" you demand to speak with when you get upset is no better.

Want the skinny about Banking Managers and Supervisors?

It's not necessarily the level of education that got them to upper management. Truth is, many of them barely squeezed by high school but became supervisors due to seniority and time spent on the clock. So all you have is the same ding dong, just one that is aged and was granted promotions. Try not to live for today but think about the future. Yes, real estate values are down and your home may not be worth what it was two years ago but, you may shoot yourself in the foot if you walk away now and your home value doubles in the future. In Los Angeles, it's very possible.

The real estate trends throughout the decades in Los Angeles speak for themselves. Yes, there are some down cycles but LA is a sure solid bet overall. Stick with it and hold on to your homes. Your home should not only be classified as an investment that potentially yields a return, rather a dwelling that gives you peace and tranquility. A space that offers you and your family comfort and stability. Your home is what you make of it. Be thankful and appreciative because overall, life is good.

What Planet Does the LA Tax Collector Live On ?

Reader's Question:

I find it hard to believe that the value of my home is what the Los Angeles County Assessor claims it to be. Recently, I received a mailer from a company that claims they can reduce my property taxes. Are these companies legit?

Christian's Response:

Reader - Many of these companies are legit but please know that the paperwork and application they will be submitting on your behalf is available to you for free. You can request a reduction of your property taxes by going directly to the Los Angeles County Tax Assessor website:

http://lacountypropertytax.com/ and printing the forms off their website.

Lastly, please know that deadline has passed for the 08 tax roll. The deadline to file was Nov. 30, 2008. If you in fact decide to file a request to reduce your property tax amount today, your application would be considered for the tax period of 09-10.

When Will Obama Stimulate Me ?

Reader's Question:

I understand President Elect Obama will unveil a plan that should stimulate the housing crisis that we are in. Have you heard anything about this and how do you think it will affect all of us homeowners that are trying our best to hang on to our homes?

Christian's Response:

Reader - Obama's plan may be a good start but don't hold your breath. It frankly isn't fair to place 100 percent of the burden on one man. One man didn't create this mess so, don't expect one man to clean it up. In my opinion, Obama is definitely taking some strong and bold steps in an effort to boost the economic slump. Many believe that the plan will surface sometime in February and if all goes well, it should hopefully come to life shortly thereafter.

One of the many items suggested includes mortgage interest rates of 4.50%. That may encourage many home buyers that have sat on the sidelines to make a move and buy real estate but ...... the deeper problem and the true issue consistently remains the same. Banks are not willingly funding loans like the "old days." Trying to get a lender to fund in today's market is like pushing an elephant up a mountain. To say that banks are overly conservative is putting it mildly. Many buyers with 750 + FICO scores are not able to qualify for loans today. It's a nightmare. Revised legislation needs to be put into place and congress needs to step in and push these banks to lend some of the 700 billion they are squatting on. The White House must step in before all of us are living in the Dog House.

Does This Mean I Don't Have To Pay My Rent ?

Reader's Question:

I rent a home on Glendale's south side, *** (edited) Western Ave Glendale. I have rented this house for the past 2 years and have always paid my rent on time. Just after the New Year, I received a postcard in the mail that stated ____ could save my home from foreclosure. WHAT???? Every day since then, I have been receiving more and more letters in the mail addressed to my landlord. I haven't opened them since it is not addressed to me. One of the envelopes bares a red stamp that says "Foreclosure Prevention Tips Enclosed". I figure it's more of the same. Can you help me and let me know if this home is truly facing foreclosure? If so, can I stop paying rent?

Christian's Response:

Reader - I did run that address and without getting into too many details I can tell you that the property owner has not made the past several month's mortgage payments and the bank has started the foreclosure process.

That does not mean that the home will be foreclosed on nor does it mean that you can stop paying rent.

The homeowner does have the right to redeem the property and bring it current by making up the back payments or possibly completing a loan work out / modification.

Not to get into landlord and tenant law (as I am not an attorney) I can tell you that as a tenant you must continue to make rent payments on the home you lease regardless of a pending foreclosure action. I assume you signed a contract / lease with your landlord. That contract contains terms and conditions that must be met until terminated.

Rather than stop paying rent, I suggest that you communicate with your landlord.

Pick up the phone and ask him or her directly. Most times confronting the situation head on rather than questioning what will happen next is the better approach.

Hopefully, he or she will be honest with you and together you can both come a conclusion and solution that satisfies you both.

2008: A Year of Loss. Will It Continue To Bleed Us Into The New Year ?

If your name is Anil Ambani, boy did 2008 start off with a bang! Ambani, a telecom industry billionaire was plastered in publications all over the world for being "The World's Biggest Billionaire Gainer" in March of 2008 with a net worth of 42 billion dollars. Today, those same publications label him as "2008's Biggest Loser" losing over 30 billion dollars in just nine short months after the value of his company stock tumbled.

Well, it could have been worse. At least his name isn't Anurag Dikshit. Dikshit, the software giant of "Party Poker" not only lost 600 million dollars this past year but now faces 2 years in prison after pleading guilty for violating U.S. gaming laws. Dikshit has paid $100 million dollars in fines and still owes millions more. I'm not sure what‘s worse - prison, a 600 million dollar loss, or going through life with a last name of Dikshit? You be the judge.

Then we come to Bjorgflur Gudmundsson. Gudmundsson was worth 1.1 billion dollars as the head of Iceland's second largest bank. With a recent government take over and Iceland's lending collapse, Gudmundsson‘s net worth of 1.1 billion stands today at 0 – allow me to spell it out – ZERO. I don‘t make this stuff up people. I wish I did but all are facts and illustrations of what deep scars were left behind in 2008. Many ponder what‘s in store for us in 09 and your guess is as good as anyone else's. When it comes to real estate, no one has a crystal ball but many industry insiders believe that Los Angeles will experience a strong decline.

According to Fortune magazine and CNN Money, of the Top 100 markets studied in the country, Los Angeles Metro Areas comes in at #1 for the worst real markets of 2009 with a anticipated loss of an additional 25% in median real estate values.

A Glendale councilman said it best at a recent council meeting regarding the status of Glendale's economic condition "The sun will rise again." That is a true statement. The sun will rise again but hopefully we all have homes to live in and a roof over our heads so the sun doesn't scorch us. Let's not be too quick to close our eyes and lend a deaf ear. Ignorance is bliss. That's what the banks did and look where they ended up.

Regardless of turbulent economic times, we should not lose sight and focus. We should remind ourselves and be thankful for our health, our friends, and our family. For what is life without any of the above. So focus on being the best person you can be to yourself, your friends, your family, and your neighbors and life will in 2009 will be filled with happiness and true enrichment that money can't buy.

BANK CEO’s: Forget The Mercedes, We Still Have Our Private Jets

Ever wonder what Lenders and Bank CEO's do after they finish crying on CNN and beg congress to bail them out with your tax payer dollars?

Do you know what they do once they leave the CNN stage .........????????

They jet around the globe on Lear Jets and Corporate Owned Gulfstream's !!!!

Isn‘t that nice and you (the taxpayers) just contributed an extra 25 BILLION dollars for their luxury travels! That's right, you paid for it! The bailout, which banks freely accepted, included an added 25 million in TARP money (Troubled Asset Relief Program). So let's forget my suit wearing, Mercedes driving jab at city hall. Who needs the low level Mercedes when you can commute in a 47 million dollar G550 Gulfstream? Allow me to brief you on some lender travel expenditures during 2008: A year when home foreclosures hit historic highs, nationwide home equity loss equated to approximately a negative 2 trillion dollars, and while hundreds and thousands of families where thrown out of their homes, banking executives could care less. Here's a bird's eye view of 5 of the nation's largest lenders and how they scrapped by in 2008.

If you thought they trimmed the fat and traveled via commercial airliners at LAX, you're wrong. Why would they travel as common citizens when:

• CITIGROUP: has their own airline / flight subsidiary named, Citiflight Inc. Citiflight handles all air travel for their executives. Citiflight states that they have "reduced" their fleet by two-thirds over the past eight years. Nevertheless, 2008 FAA records show they still own four jets and one helicopter.

• MORGAN STANLEY: Has made a BOLD move !! They reduced their executive jet fleet size from three planes down to two since 2005. FAA records still show two Gulfstream G-Vs are registered to the company. In 2007, CEO John Mack's personal use of company aircraft totaled $355,882, according to a February proxy filing. Mack is "required" to use company aircraft for personal trips for......... get this......... "security reasons". Michael Jackson he is not.

• JPMORGAN: is the registered owner of four Gulfstream jets, including a 2007 ultra-long range flagship G550 model, FAA records show. A G550 ordered for delivery that year would have cost roughly $47.5 million. CEO Jamie Dimon is "required" to use company aircraft for personal trips. In 2007, his personal use of company jets totaled $211,182, according to a May filing with the SEC.

• BANK OF AMERICA: Registered as the owner of NINE planes, including four Gulfstream‘s, FAA records show. B of A has refused to comment on whether the company has changed its policy on corporate aircraft use since taking $15 billion in bailout money. CEO Kenneth Lewis is also "required" to use company aircraft for personal trips that racked up $127,643 in travels last year, according to a March filing with the SEC.

• WELLS FARGO: Poor Wells Fargo - They only own one simple jet that is strictly for "business purposes and is to be used under appropriate circumstances only."

To date, these 5 lenders have so far received 120 BILLION DOLLARS in government cash infusions while the rest of the economy remains crippled. Just to give you an idea, a cross-country trip in a mid-sized jet costs about $20,000 just for fuel alone. Forget maintenance, storage and pilot fees. All those included would put the cost much, much higher.

While thousands of families are getting ready to be kicked out of their homes and foreclosed on, please take comfort in knowing that your bank executives and CEO‘s still travel in style.

VIDEO: The Mortgage Meltdown - Where's The Bottom? CBS Finally Tells The Truth

Want to understand why this market sucks and why this market will continue to suck for the next few years ???? Check out this insightful and honest report produced by CBS's 60 Minutes.

After watching this report, you'll have plenty to discuss with family and friends.

You'll understand the facts and many might believe you're the next loss mitigator/foreclosure expert! Check it out.

Click on the 60 Minutes logo above. You'll be glad you did!

Do I Really Have To Be Late On My Mortgage ?

Reader's Question:

I heard that I have to be late on my mortgage payments in order to get a loan modification. Is that true?

Christian's Response:

Unfortunately, that may be correct. Not always and it‘s not a blanket rule but, for the most part, I would have to agree overall. I never advise clients on whether they should or should not make payments. That is a personal choice and only they know their financial situation. Many lenders today won't take your request to heart (if they had one) unless you are behind and delinquent. They claim it is difficult for them to validate homeowners that truly need a "work out" / loan modification versus homeowners that are trying to take advantage of a down market. In order to complete a successful loan modification, the homeowner must demonstrate a financial hardship to the lender. If your payments are current and on time, that demonstrates the contrary.

Many would say that the system is crooked. I would say, forget crooked. The system is flat out broken and is in ruins. In my opinion and professional experience, bankers within the foreclosure department (loss mitigation) are for the most part disorganized, mismanaged, and many have the attitude that they are as holy as Christ himself. It's not all that bad. They do change face and become tolerable once you establish to them that you know the game and that you have figured them out. Then again, who am I? Just the banks best friend!

The Tax Collector Is Coming To Get Me

Reader's Question:

I recently received a letter from the LA County Tax Collector and it frightens me. I have not paid my taxes in 2 years. The letter stated that I am in default and that they would foreclose on me. I've read your thought provoking posts for the past few weeks and wasn‘t sure if you'll take property tax questions. Could you help me?

Christian's Response:

Reader - of course. Our focus is foreclosure prevention and homeowner retention so I'll be glad to respond as it does relate. In fact your email is definitely of interest to us because it states their intent of a possible foreclosure action of your property.

Let me highlight a few important details according to Christian Arbid, the banks best friend. Allow me to arm you with knowledge. Some of the folks at the county tax assessor's office are as bright as the customer service reps hired by the banks and instructed to call defaulted homeowners 20 times a day and verbally beat them up. At my firm, we love hearing from the bottom feeders. It gives us great pleasure and makes for wonderful entertainment!

First and foremost, there is no way around it. A homeowner must pay the property taxes due on their home. It's that simple. But here's the flip side of the story: The tax assessor is not telling you the entire truth. One would have to have defaulted and not paid their property taxes for 5 consecutive years for them to foreclose on you. Even thereafter, there is a redemption period where a homeowner could re-pay the delinquent tax amount and rightfully regain possession of your property.

If you haven't paid in two years, they cannot foreclose on you even if their letter stated so. It's just pure nonsense. Try and work it out with the tax assessor's office. Call them and work out a payment plan. Do not stress yourself out with the empty threat of foreclosure. If that letter angers you that much, use it as fireplace material.

Yes, you do have to pay your taxes and you are responsible for it but feel free to corner the tax assessor with your new found foreclosure and right of redemption knowledge. Play nice with the county. You get more bees with honey than you do with vinegar.

FICO Scores: Short Sale vs. Foreclosure

Reader's Question:

How does a short sale vs. foreclosure affect my credit report and credit rating?

Christian's Response:

There is no exact answer for that. FICO, which stands for "Fair Isaac Corporation" is responsible for generating what is known as your FICO score.

Fair Isaac began in 1958 by two individuals, Bill Fair (an engineer by profession) and Earl Isaac (a mathematician). Together, they developed a process that measures credit risk. Today, those scores and ratings are known as your FICO score.

Those rates are then turned over and reported to the three major consumer reporting agencies, Experian, TransUnion, and Equifax. The lovely employees at FICO which staffs over 3,000 employees will tell you there is no exact science to their rating system rather it's a system of blending numbers, percentages, and ratio's.

Here's what I can share with you after being in this business for 10 years:

FICO's change constantly. Creditors report to Fair Isaac every 30 days. The numbers I'm about to share with you are based on our own client cases and FICO scores that we have followed over the years.

- If you are late on your mortgage you might experience a 20 - 90 point drop in your scores.

- If you complete a successful short sale, you can expect a drop of approx. 100 - 150 drop in your scores depending on how the lender reports back to Fair Isaac and the terms of your short sale agreement.

- If you foreclose-get ready to see a 250 point loss.

- Lastly, if you file for bankruptcy get ready for a strong hit of approx. a -400 points and a ding that will sit on your credit profile for the next 7 years.

Again, please do not take our figures as fact or a perfected science, rather a brief over view of what we've seen in real estate mitigation over all. Our goal is to help and assist as many homeowners we can. So use this as free, well researched advice that many pay thousands to find out about and it's offered to you gratis via this site!

I'll BK My Way Out of It

Reader's Question:

I am four months behind on my mortgage payments. I was thinking about filing for bankruptcy so that I can keep my home. What results have you seen and is bankruptcy effective?

Christian's Response:

Reader, Although I am not an attorney I have decided to respond to this email post regardless as I feel it is a valid question that many may ponder. With that said, I do not want you to feel that I am giving any legal advice, rather posting my own thoughts and professional experience as a loss mitigator specializing in lender mitigation and as a licensed Real Estate Broker in California. I will go ahead and brief you with this much information:

The bankruptcy hurts you, not the bank. Truthfully, the banks can care less. I personally know banking executives (professionally known as "asset managers") that laugh when they see a homeowner file a BK. I know of one locally in Pasadena that gets a thrill out of it. It really excites him. Yes, it will delay or postpone the foreclosure process (at best) but that‟s where it stops.

Bankruptcy will not indefinitely allow you to keep your home nor does it "wipe away" your mortgage obligation. Bankers have learned how to get around BK filings. They simply file a "relief from stay" and eventually what usually happens is you‟ve hurt yourself and your credit report for 7-10 years and the lenders most likely prevail at the end of the day. Obviously, a short sale is not an option for you since you stated you intend to keep your home.

Might I suggest that if you were going to spend 2 - 4 thousand dollars on a bankruptcy proceeding as the sole purpose for retaining your home, you might want to seek out an attorney that can prepare a loan modification request for you? Speak to friends and family. Most definitely get a referral. There are many loan modification companies out there today that claim to be loan modification "experts", but truthfully they are 'fly by night'. Here today, gone tomorrow. Ask for copies of their lender approvals. If you need further assistance or you feel lost, email us back. We‟ll point you in the right direction and give you a few phone numbers of legitimate law firms that do quality and legitimate loan modification work. Thank you for emailing and thank you for doing the best you can in order to keep your home.

Loan Modifications for FREE ?

Reader's Question:

I understand that there are some non-profit organizations out there that suggest to homeowners that they can get a free loan modification through the use of their programs. Is that true?

Christian's Response:

Reader, yes - it's true but you get what you pay for. I don't know of any true professional that offers up their trade or craft for free.

A good mechanic won't repair your transmission for free. A well educated and respected surgeon won't operate on you for free.

Furthermore, what's their incentive? What do they have to gain? Why fight for you and go the extra mile? If your request is denied, (as approx. 80% currently are) what have they got to lose?

You offered them nothing, so they owe you nothing in return.

No One Is Immune

Reader's Question:

I own a home in a nice part of Glendale. I owe the lender a bit over a million dollars on the home. The house I believe is worth approximately $900,000. My wife was already told that she is losing her job at the end of the year. Do you think the lender would hear our case and consider a short sale?

Christian's Response:

First and foremost, I am sorry to hear that your wife is losing her job. Nobody ever wishes that on anyone but unfortunately it is becoming a more and more familiar story. Half my clients today are unemployed. You are not alone. According to your situation and if the numbers are accurate, a lender would be nuts not to consider your situation.

In order to achieve short sale approval, one of the conditions deemed necessary is to demonstrate a financial hardship to the lender. If your wife lost her job or is just about to, there might be your hardship. Any experienced and qualified Realtor mitigating a loan of 1 million dollars and requesting a 100k loss should be successfully completed with his or her eyes closed as long as the value of the home is truly $900k and other short sale requirements are met.

A 10% loss severity is a very small loss for lenders today. Small losses of this amount are a breeze. To any experienced industry professional, this short sale request should be a walk in the park blindfolded. Most of my negotiations today involve a 30% - 40%, if not 50% loss to the lender and we successfully mitigate them.

Best of luck to you. You should be fine.

STOP Polishing The Turd

Reader's Question:

I read a newspaper article recently that said the market is up, sales are increasing and homes are selling. Is that true?

Christian's Response:

Reader - Sure it's true. Think outside the box.

The market is up compared to when? Last week, last month, last year?

Sales are up compared to what? What price ranges?

Sales are up for home buyers between the ages of 30 - 40 that have a spouse, 3 children, 2 cars, 1 dog, a fish with one eye, and a cat with a wooden leg?

Articles like that really get me. There are multiple facets to consider and think about.

People that make statements like that should be careful because making such a general statement is:

A) inaccurate and

B) unfair to all homeowners as it gives them a false sense of reality.

Everyone is suddenly an expert and any one can make any claims they wish. The author of that article, in my opinion, is polishing a turd.

Don't rely on articles.

Use the brain that God gave you.

The market will be picture perfect and homes will fly off the shelves when you see the following:

A) Gainful employment being offered rather than massive lay off's, job cuts, and corporate bankruptcies.

B) Lenders willing to lend money and release some of the piles of cash they now have in their possession (remember that 700 Billion Dollar Bailout, Where's that money?)

And lastly

C) When real estate pricing has settled and come back down to true values and comfortable levels that people can truly afford.

Hey Dummy.....Short Sales Are Illegal

Reader's Question:

I thought short sales were now illegal?

Christian's Response:

Short selling on Wall Street is illegal. Real estate short sales are an everyday common occurrence. Don't confuse the two.

How Dare You .......

Reader's Question:

Short Sales are terrible. Why would you be promoting such a thing? They have ruined the values in my neighborhood and are destroying neighborhood comparables.

Christian's Response:

First and foremost, I do not promote anything. I simply attempt to educate homeowners of their rights and offer them what options may be out there for them to seek.

My focus is to save families from foreclosure.

Whatever route they take is their decision.

Secondly, short sales do nothing of the sort. That is a fallacy.

As a neighbor, what would you prefer? A short sale where the homeowner is still in possession, watering the grass, and maintaining the home or a vacant home that is now foreclosed on, a haven for thieves and criminals, is now being sold as an REO where the lender is going to slaughter your comparables in any case. Meanwhile, the home now boasts dead grass, shoddy landscaping, and a filthy pool over run with algae, and an eye sore you get to stare at everyday as you leave your home and drive down your street.

One might suggest you rethink the judgment call and thought process. Life is not a fish bowl and you are not the only one living in it.

You're FIRED !!!

Reader's Question:

My wife lost her job after 19 years of employment with the same company. We live in La Crescenta and purchased our home in 2007 when market pricing was high. I continue to work and thankfully have a stable job. We must keep our home and have made every attempt to work with the lender. Four months ago, we requested a loan modification and completed all the paperwork. After months of lost sleep and numerous stressful phone calls to the bank, the lender finally responded to us. The result was our loan modification was denied and the file has been closed. Goodbye. We have no other options and we need help badly. We will do anything to keep this special home. It is special to me since my father built it himself in the 1950's and that was the motivating factor for the purchase. My parents are now both deceased and keeping this home is my last hope and memory of them. Christian, please help.

Christians Response:

Timing is everything. On Nov 11th, the FDIC rolled out a new plan to help homeowners. Programs that you requested four months ago may not have existed then but do now depending on what lender you have. Here's an industry insider tip. Lenders are more likely to help you today compared to last month not because they are nice guys but rather a group of greedy parasites.

Two weeks ago, the government unveiled a new plan that would sweeten the pie. The government has now agreed to pay lenders anywhere between $800 - $1000 per file for every successful and approved loan modification.

Remember one thing, lenders and bank executives are not your friend. They can care less about you. As long as their private jets continue to be fueled and their luxury yachts are ready to sail, you could drop dead and foreclose - it is meaningless to them and frankly a yawn.

Lastly, please know this - 80% of all homeowner requested loan modifications FAIL. There are ways to successfully complete a loan modification and most homeowners are not equipped with that knowledge.

Hire an expert. Make sure the company you select is licensed by the California Dept. of Real Estate or a Licensed Attorney that specializes in lender / loan mod issues. My recommendation in your particular case: Get an aggressive and hungry attorney. My office does not negotiate loan modifications as we focus on short sales, foreclosure prevention, and lender loss mitigation. Get a few recommendations from friends and family. If you have no luck and need assistance, reconnect with us and we will most certainly point you in the right direction and get you into the right hands.

Are You Legit?

Reader's Question: Are you really able to get the lender to lose money on a house just so the homeowner can avoid foreclosure?

Christian‘s Response: Does the sun rise in the east?

To Good To Be True

Reader's Question:

Why would a lender agree to take a loss on a home in today's market?

Christian's Response:

Reader, the lender has no choice. Either the lender will use common sense and work out the current situation with the homeowner or they will end up sitting on the property for God knows how long costing the lender a fortune in holding time, legal fees, carrying costs, and resale costs if and when the property is foreclosed on and later resold. It is a loss either way. Often times it is cheaper for the lender to cut their losses now rather than dragging out the inevitable.

Tax This

Reader's Question:

My neighbor told me that if I short saled my home I will get taxed on the loss. Is that true?

Christian's Response:

First, kindly ask your neighbor what he does professionally for a living. If he's a doctor, advise him to stick to medicine. If he's a contractor advise him to stick with construction. Your neighbor is about 2 years behind on the times.

Your answer is: check with your CPA.

My answer to you is........I have yet to see it happen. President Bush signed into law the Mortgage Relief Act of 2007. This legislation would prevent a 1099 from being issued to any homeowner in a short sale transaction that was last used as a primary residence. That legislation applies on a federal level only.

I am neither an attorney nor a CPA. They would be better suited to answer your question based on your particular situation although I do think your neighbor may want to stick to his day job.

Reversing the Forelcosure Trends

Nov 2008: Glendale, CA Reverses the Foreclosure Trend

With a 700 billion dollar bailout, a new president elect, and a new year just around the corner, many wonder what 2009 will have in store for Glendale residents and homeowners.

While it can be anyone's guess, there are a few key market factors that we can rely on. Rather than creating more of a spin, let's learn from the past so we can lessen the pains of our future.

Whether you place blame on a greedy homeowner that squeezed every ounce of equity out of their home or a reckless lender that allowed a borrower to purchase real estate that everyone (including the lenders themselves) knew they would not qualify for, we now feel the effects of a bubble deflated.

Mostly predicated on the heels of a borrower employed as a gardener but labeled a "Landscape Architect" making $150,000 a year, or a local hair dresser making "$20,000 a month" etc., all add up to the misery that homeowners are feeling today.

It's simple, million dollar purchases made on beer budgets and 1% loans issued with the hope of a "flip" or with a "don't worry, just refi in a year or two and use your equity." That door slammed shut faster than any homeowner could prepare for.

Most of these purchases were made in neighborhoods that were labeled as "growing communities" such as Palm Springs, Riverside, Sacramento, etc. feeding the false hope of quick profits. The only growth booms those communities experienced were investor booms. One article based out of Palm Springs in early 2006 touted that "40 families a day move to the desert" basing that figure on the number of housing sales. When in fact, it's one investor purchasing a string of 10 homes on the same street and no one was moving anywhere.

The Glendale Difference: very few investor driven purchases were made in Glendale during the past few years.

Glendale is a bedroom community comprised of families with an overall long term plan to live, works, and establish roots within the city. Most homeowners remain in Glendale for decades, not just a one hit wonder. The number of foreclosures today in Glendale stems mostly from 100% financing options and the refi boom rather than investor and flips predictions.

In June 2008, there were 569 homes in Glendale facing foreclosing. As of Nov. 14th, there are 393.

This is a significant decrease and proof positive that the tide has turned in the right direction for Glendale homeowners facing the wrath of a lender. While neighboring cities struggle with the rising numbers of foreclosure filings. (i.e. Pasadena with approx 450 homes currently in foreclosure).

Here's what you should remember:

It's not a 700 billion dollar bailout plan; it's a $3.5 trillion bailout.

$700 billion for federal financial institutions, plus $85 billion to AIG, another $20 billion to Fannie, Freddie, on and on and on.

The party has just begun and the fat lady by far has sung. In fact, she's still warming up her vocal cords.

The numbers add up to over 3.5 trillion, so don't fool yourself. Although it's not the end of the world nor will it mark the economic collapse of the United States, please know that it will take years to recover from this.

It would be unrealistic to hang your hat with one man, one president. One man cannot solve the issues and clean up all the mess left behind.

Homeowners don't hold your breath. Before year end, there would have been over one million foreclosures nationwide.

Currently in Los Angeles County, 1 in every 304 homes are in foreclosure.

Although our work is nowhere near complete, I am proud to live, breathe, and work in a community that is resistant to the lenders abusive schemes. I am proud to represent dedicated homeowners that are willing to go to the mat and fight for what they believe is right. We can certifiably boast that while others attempt to figure out the manner in which a homeowner can keep their home and resist this trend, 176 Glendale families since June already have.

While we celebrate a 30% decrease, we cannot forget those communities that are experiencing a 30% increase. All families deserve the same rights as most cherish the rights of home ownership regardless of what picture the weeping lenders paint. It's nothing more than crocodile tears. Have no remorse. Stand firm and continue to fight for your homes. Anyone that attempts to inform you otherwise can suck rocks.

In Glendale, CA they are more than definitely on the right path.