We’ve been blessed with a few uncharacteristically sunny autumn days this week, which has certainly made our daily walks more enjoyable! Here, a young oak blazes in the setting sunlight.
10 million More Mortgages Set to Default
Excerpt:
“Roughly 10.4 million mortgages, or one in five outstanding home loans in the U.S., will likely default if Congress refuses to implement new policy changes to prevent and sell more foreclosures, according to analyst Laurie Goodman from Amherst Securities Group.
…At the end of the second quarter, more than 2.7 million long-delinquent loans, others in foreclosure and REO properties sat in the shadow inventory, more than double what it was in the first quarter of 2010. With the market averaging roughly 90,000 loan liquidations per month, it would take 32 months, nearly three years, to move through the overhang.”
(Homes in Washington State are moving into foreclosure at a rate of approximately 2,000 per month.)
Full article is here.
Fraud in Real Estate – “Hide the Concessions”
Here’s an example of an illegal practice that still goes on after everything that has happened in the housing market.
This condo is listed for $579,000 in Millbrae, CA. There’s a nice little video that tells you that if you (the borrower) sign a contract before November 30, 2011, you can get a $15,000 kickback from the “New Homebuyer Assistance Progam,” a brand new Mercedes Benz C300 (approximate value: $38,000) and a 1 carat diamond (approximate value: $7,000)! Come on down!
The expectation by everyone involved is that the appraiser will ignore the concessions and submit a signed report to the lender valuing the property approximately $60,000 higher than it is actually worth.
Unfortunately, borrowers are often dazzled by this type of offer, not realizing that they can be charged by their state Attorney General as a party to fraud (it is illegal to value non-real estate items as real estate in mortgage transactions), and that they are immediately “under water” in value. (In this example by over 10%.) In the current declining market, it could take most of a decade to recover that loss, as the condo will only honestly appraise for approximately $515,000 to $520,000.
Put another way, if they have to bribe you with sixty grand to buy it, it is not worth the list price.
Of course, realtors, builders and loan officers will scream long and loud, accusing a resistant appraiser of “killing the deal,” or “undervaluing” the property, or being “too conservative.” Appraisers who refuse to go along risk being blacklisted. Sometimes this takes the passive aggressive form of simply not getting any more work with no explanation. Other appraisers have experienced blistering, hateful diatribes from abusive clients demanding capitulation. Some appraisers have even been threatened with physical harm to themselves or their families.
A great deal of press has been devoted to blaming appraisers for failed real estate deals, and almost nothing has been said about the role that realtors and lenders have played in coercing appraisers and perpetuating illegal practices.
Occupy NY
I see it took 3 hours to clear Zucotti Park, complete with a string of garbage trucks into which personals and the “Occupy Library” was dumped. That visual symbolism is an absolutely perfect statement of the regard in which public protest is held by the powerful. (AP Photo/Craig Ruttle)
The OM (The “Occupy Movement”) interests me on a number of levels, primarily as it is a baby step towards something larger and inevitable, and because of the societal and cultural implications.
OM is becoming a tiresome threat to what actually matters to the 1% and the millions whose survival depends upon their table scraps: we are getting close to the most important part of the year for consumerism. I recall that during the WTO protests here in Seattle, local news stations aired soundbites of annoyed, fashionably dressed white women whining that their freedom to shop was being inconvenienced. No surprise here – for much of the downtown Seattle area, you need to be in the top 5% (at least) to afford to shop, so those abstract, far away “hippie issues” don’t have very much traction when compared to the Macy’s sale.
I noticed that Frank Miller posted a particularly caustic diatribe on this topic (Yahoo News thought this was newsworthy!), regurgitating the bigoted smear promoted by those invested in the status quo. Other than Frank’s friends, why should anyone care what Frank Miller thinks? He’s not, let’s say, educated in Political Science – he makes his living drawing pictures based on tired old narratives that have already been done to death by much better artists (such as Homer). What interests me is that his post, and the attention it generated, reminds me that the Internet legitimizes the worldwide broadcast of comments and ideas that are best suited to sharing with your friends in your trailer park over a case of beers and blunts. In other words, offhand, poorly reasoned, unsourced comments do not deserve the artificial importance now provided by the illusion of mass appeal (Wow! I have 17,389 “friends!”). But it dovetails with the primal human need for validation and acceptance, and the human susceptibility to anecdotal evidence. Sadly, Pogo was right.

I also think it is interesting to note that Zuccotti Park is owned by Brookfield Office Properties, which means the “occupation” was, technically, a form of trespassing as the rules of public space and public use do not apply. The real significance of this observation is to realize that increasing amounts of what we assume to be “public space” is not actually public space any more. This is a direct result of “conservative” pressure to privatize all governmental functions, and the incessant media flood of right wing propaganda about taxation, which is drying up the revenue needed to support and maintain public facilities.
The “commons” is being dismantled right out from under everyone, and by the time the full extent of the damage is realized by enough people, it will be too late.
This leads me to thoughts about media bias, political corruption and neoconservatism.
These will wait for another day.
LSS Exam
My Lean Six Sigma examination is rapidly approaching. I’ve got just a little over two weeks to cram as much study time as possible.
With a little luck, I’ll wind up with a “Green Belt” Certification, which should enhance my resume profile.
Transitioning
Everyone,
I am no longer making new posts to the Google-sponsored “blogspot” blogs I have been using. I will be transferring most of those posts from “blogger” to this blog, which is on my own domain/server space. Those Google blogs will subsequently be closed.
I have been concerned for some time now about the direction social media sites have taken, in the purposes they serve, and the kind of social changes these media are encouraging among the public in general.
As I am fond of saying, if you are not paying for it, you are the product being sold. Google and Facebook perform a great deal of datamining, and information drawn from our posts are sold to advertisers and corporations. We all know there is no expectation of privacy on public social media, yet we are seduced into revealing more about ourselves that we normally would, because we are thinking about the people we love and trust when we are writing self-revealing posts. It’s a beautiful strategy – to get you to open up about your true preferences in front of a corporate audience that uses that information to target you.
Changes are often made without notice, impacting security and privacy, and putting the task on us to be vigilant about those changes, and how they affect the choices we thought we made about our privacy.
The social media platforms are really just advertising bots, and I want to get as far away as possible from all of that exploitation and pressure.
The Internet continues to devolve into a cesspool, and incivility and cruelty have become competitive sports among people with nothing better to do. We even have names for them: “trolls.”
On this blog, some posts will be password protected. I will be emailing passwords to selected people based on whether or not the content is of interest or use to those people.
Thanks to everyone for your comments, feedback and support!
Yours,
Michael
Just Passin’ Thru
First: Who knew mini Coopers had side curtain air bags?
Second: For some reason, nice weather seems to make people drive crazier.
Last year, right in this same area, I saw some bonehead pull an abrupt U-turn in front of oncoming traffic, cutting off an oncoming car.
The oncoming car being cut off was a Sheriff’s Deputy. BONUS!!!
Legerdemain and PFM
Need to take a break from painting, but you know you’ll need to use that roller and brush again in a few hours?
Cover it with plastic wrap. Push it down into the pan so it is in contact with the surface of the paint, preventing it from drying out.
After your nap, you peel off the plastic and get back into the groove, filling in all the spots you missed on the first pass!
Autumn
Six Months Later
Note: I have changed the title of this post because the old title attracted comment spammers. 12/12/2011
Last Sunday was the six-month anniversary of the day the massive earthquake and tsunami devastated Japan’s northeast coast.
The link takes you to a site with side by side shots of locations, showing the progressive recovery.
Photo: copyright AP/Kyodo News, retrieved from http://blogs.sacbee.com/photos/2011/09/japan-marks-6-months-since-ear.html
Protected: More Dental Adventures
Morning
Crash on 128th, Part II
The rains haven’t even started, and these motards can’t make it down a straight section of road in bright sunlight without nearly killing each other. This time, further down by 4th Avenue West.
They’re Here
Morning Rush Hour
The morning workbound heading south toward Edmonds on the Sounder.








