Fresh vegetables are great but they don’t last very long. Most produce stays fresh with cool temperatures and high humidity but there are steps you can take when storing vegetables to encourage that environment. Wash your fruits and vegetables before storing, but make sure they are completely dry before packaging them. If a vegetable is still wet when it is put into storage, it is more susceptible to bacterial growth. Wash produce just before you are ready to use them. Put leafy greens, such as lettuce and spinach, ...

Without fertilizer, you may not be able to have the lush green law that you had imagined for the front yard of your home. Though you can take basic steps in lawn care, using this product will give your grass an extra shot of nourishment. Fertilizers are substances that are used to boost the ease in which your soil is able to produce new growth. They can be very beneficial to improving the look and cultivation of all of your different types of landscaping, whether trees, flowers, or plants. The ...

A plumber really is someone who you hope you never have to call unless you are doing some upgrading of your own accord. Apart from this they are most commonly used in emergencies when you discover you have been flooded through a burst pipe or a leaking tap. Everybody knows how destructive and how damaging this can be and it has to be dealt with quickly so it is always best that you know who you are going to call before the incident happens. You can of course just pick one ...

Basements are a feature unique to certain parts of the country. Many areas at or below sea level cannot accommodate the existence of rooms below the ground level due to poor soil or excessive moisture. Northern Virginia homes have the ability to sustain basements. Unfortunately, many homeowners do not use this space to its fullest. It often lies dormant and unused while the rest of the home is cramped and cluttered. The basement often has a stigma of being a place that is too scary for children, too cold for ...

Some argue that the United States’ dependency on nonrenewable resources has become too great. Most of the country’s electrical power is retrieved by reactors in power plants that generate energy from fossil fuels. Though this is very powerful and only small amounts of these substances must be used to power a large area, the fact is that they will not be around forever. Oil, gas, and petroleum is made from the decaying matter of living organisms that has changed over thousands of years into a vital energy source. Much of ...

During a tough economy, it may not be convenient to undertake a home remodeling project. It is during these tight financial times that contractors find themselves doing many projects that “need” to be done, rather than those that people would “like” to have done. Northern Virginia residential remodeling projects that get the most attention from contractors more recently tend to be maintenance, extensive repairs and upgrades. Some projects are more involved than others, but may be tied to issues of safety or frustration. One of the most popular targets of recent ...

The kitchen is one of the most frequently used rooms in the modern household. It should have the most modern innovations and conveniences. Quite often, however, the kitchen is the most outdated in style and poorest use of space in the entire house. Common complaints about kitchens are that there is not enough room for storage or food preparation. Some people wish they had somewhere informal to eat rather than their formal dining room. Their appliances may be old and take a long time to heat up. This prolongs cooking ...

Fitting your own wooden flooring doesn’t have to be a difficult task, and if you have some knowledge of DIY, it is actually quite simple. As long as you use common sense, patience and discernment, then you should have no problems at all. Here is a basic guide for anyone laying a wooden floor (the standard ‘floating’ method with tongue and groove fixings) - The Materials The most important thing to consider when you are purchasing your materials is that the timber has a moisture level that is less than ...

Embarking upon an interior design project can be a daunting task, and you may not be sure if you possess the necessary skills and knowledge to take on this type of job. If you are living in the London area, here is some guidance to help you decide whether you could become your own interior designer or whether you should hire a London Interior Designer for your interior design project. Becoming Your Own Interior Designer There is a number of factors to take into consideration if you want to become your own ...

When you are developing a piece of property or building a new home in a forested area there’s a wide variety of tree services that you might need. These services can include pruning, trimming, tree removal, site development, site clearing, stump removal and tree planting just to name a few. This is why a professional tree service company is needed when you start preparing woodland for building. Just heading rid of brush can be a headache, removing trees and stumps can be a major undertaking. Things get more complicated if you ...

The amount of light in a room can have a great impact on the comfort and functionality of the room. But there are many times and situations in which you may not want to add a permanent light fixture in your room. In situations like these, mobile lighting such as floor, desk, and table lamps are ideal. Floor lamps are your best choice if you want to put a lot of light into an entire room. Floor lamps can usually be tucked into a small unused space, such as behind ...

You are in a hurry to go home, and as soon as you are near your car, you remember that you forgot your keys inside the vehicle? Sounds familiar? Well, this certain situation does happen most often to vehicle owners. Being locked out of the car is one of the most common experiences that drivers have, yet definitely no fun at the exact moment it is happening. What are you going to do? Call a friend for help? Call a tow truck company? Or, call a reliable automotive locksmith in ...

Solar installation is both economical and ecological. Solar energy is an unlimited free source of energy and can be utilized by any one and every one as much as possible. It is a very good alternative to electricity which is non- renewable and also costs much. There are a lot of advantages in solar installation including, saving utility bills and feeling more relaxed in using the home appliances. It requires no fuel to produce energy and in addition, it does not emit any harmful pollution to the environment. They are ...

If you enjoying cooking, chances are you have given thought to the question of whether or not to use canned foods in your recipes. While some cooks think this should never be done, others have no problem with it. Chefs have long loved using canned tomatoes for sauces and cooking, though even more so today as the quality over the years has continued to increase. Across the board, when given a choice between a fresh, local, in-season tomatoes or canned, they will go with the fresh. But for the rest of ...

The use of infrared heaters, particularly infrared saunas has greatly increased in recent years. Not only are infrared heaters relaxing which helps people reduce stress, but they also provide a number of health benefits. For instance, infrared heaters that are used in infrared sauna are known to provide significant pain relief. The Infrared (IR) radiation emitted from infrared heaters is electromagnetic radiation that penetrates the body. The infrared waves heat the body from the inside. Infrared saunas emit the equivalent infrared waves as the sun and they do not deliver hazardous ...

Whether you have just moved into a new home or have purchased an older place, you may find things about your basement that need improvement. When you are looking for a new house, you may want to think twice about buying one that is unfinished or needs work. However, if you do not mind using your money, resources, time, and energy to turn it into the place that you have always dreamed of, then it may be the perfect opportunity for you to work on your skills. Older homes ...

When the electronics are all unplugged and you’re left considering whether you can unplug the refrigerator without your spouse noticing– it may be time to investigate another way to lower your electric bill. There’s more you can do! Besides potentially wreaking havoc on your family’s refrigerated foods and feeling your spouse’s swift slap on the back of the head– there are plenty of ways to obtain energy savings in Connecticut. Let’s start with the home energy audit. It’s not the IRS and it’s not scary. When an energy expert conducts a ...

Do you want to know how long your hot water heater will last? You don’t have to go crazy worrying about it, but there are definitely benefits in knowing. You’ll be able to have time to make the best choice and get the most energy saving hot water pump available. How it Works A hot water pump actually works the same as a refrigerator except it heats instead of cools. It’s almost as if the refrigerator expels the heat for the pump to utilize. The refrigerator takes heat and pushes it into ...

Moving can be very difficult and stressful. There are many things you will have to do and think about. Most likely one of the things you will need to do is rent a trailer so that you can move your things. Before you rent a trailer there are several things that you should think about. For example, you should move on a weekday. Banks, utilities, government offices and other service companies that you may need to contact will be open on this day. In addition, most moving companies offer a ...

When it comes time to move, there are several things that you should keep in mind. Moving is a very large task that will take a lot of time. Most likely it will take much more time than you expect. Be sure to start actually packing and to have a plan for when you are going to have certain rooms done when you only have one month left to go. Even though moving can be extremely overwhelming and stressful, there are many things you can do to lessen the stress ...

Over the summer the population of NYC swelled to record numbers. Although the amount of people living in the Big Apple saw little change from the 18 million plus residents there were reports of massive increases in the number of bed bugs. NYC exterminators have been busy dealing with the infestation of blood sucking insects that has been the worst summer on record for the parasitic insects. It seems that even with the efforts to squelch the hoards of biting bed bugs NYC residents are still under attack from the ...

Bargain shopping is an advantage because you’re getting the same quality for a lower price. Especially in CT where it seems gas prices are all over the place, those bargains are essential! But, is that always the case and do all items require the same quality? Sometimes we can give up on the quality to save a buck or two. You know? We can switch toilet paper brands, but sometimes the sale isn’t always worth the buy. Don’t just buy any brand of light bulb. Although a light bulb isn’t ...

If you’re wondering what to consider when shopping for a new water heater, there’s more than just brand and price– you have to decide among gas, electric and gas condensing, and choose the most energy efficient. The Gas Hot Water Heater According to Consumer Reports, a gas water heater is estimated to cost a homeowner about half the cost of an electric hot water heater (WH). You’re probably wondering about the price difference. Although a gas WH is a bit pricier, it is a worthwhile investment. This extra cost will be paid ...

Weeds are the bane of any gardener or landscape designer. The definition of a weed is a plant that grows where you do not want it to and which can spread easily without help. These plants are irritating because they take up valuable space, take the water and nutrients that the other plants need, and make the garden or area look worse. In addition, you may find them extremely difficult to get rid of because you cannot move around the garden easily or they may simply come back too quickly. ...

What style of home office furniture do you want? Would you want a modern one? A classical one or something that is exotic? Why is it being asked of you? Most of your day and night are spent in your home and in your office. You would want to have the best and most comfortable place to be while doing what you have to do. When you feel discomfort while working then you wouldn’t be at all energetic about working. That is why knowing what you want is very important ...

A flat screen television is all the rage like the new Elmo doll or the latest video gaming system. Just make sure you understand the priority. Before you invest in the new game you better be certain to have the biggest and baddest flat screen. The sound effects and picture will blow your mind! Though they may be aesthetically pleasing, the new plasma and LCD flat screen televisions are nowhere near as energy efficient as the older rear projection televisions. Although our fashion tastes have changed and most people snarl at ...

Compost is known as black gold for the garden, the rich organic mix of decayed plant material that is rich with nutrients and minerals plants need to thrive and produce enormous yields of fruit and vegetables. With the economy being what it is, compost is often a little more expensive then we want to spend. There is a solution at hand and it does not cost a great deal of money. Learning how to make your own compost is both fun and educational, so it is a great idea to involve ...

When it comes to building or remodeling a home or business space, one of the most important considerations that can be made is with regard to flooring. Floors can stand out just as much as the colors on a wall or the tiles on a ceiling, and should be focused on just as much as any other aspect of a space. One of the most popular types of flooring for homes and businesses is laminate wood flooring; however, there are both practical and impractical uses for this type of material. ...

In order to understand what Aeroponic gardening systems are, you need to know what aeroponic gardening is. It is close the what hydroponics gardening is, in a way. While hydroponics is growing plants in a soil less liquid environment, aeroponics is growing plants without soil or water, in a container where the roots are suspended, and sprayed or misted with nutrients and water at a specific time during the day. Aeroponics gardening systems have been used for a very long time. The actual research has been going on since the 1940′s ...

Ask a professional how to replace windows and doors. They will tell you, you have to know how to read a tape measure. The new windows, and the place where it is to go needs to be measured. You need to be able to use some type of saw to trim the windows and doors down if needed. You may have to adjust it to the size you need. Getting the right size from the start is rare. Before you decide to take out your windows or doors, You have to ...

Beginning with the most obvious places for storing, the garage, thinking vertical can get you out of clutter fast. Install shelving around the circumference a few feet from the ceiling-perhaps even two sets of shelves. Reserve this space for things that you use don’t have to retrieve often. Out of season sports gear, holiday decor, or rarely used luggage can be put in this new overhead shelving and even out of season clothes can find a home if they are properly housed inside protective plastic tubs or shrink bags. The rest ...

Maybe the effects of water conservation hadn’t exactly influenced you until you lived on your own, away from the parents and you had to pay for your hot water. Perhaps the magnitude of saving water was a bit diluted until you had children. Regardless of when or how, water conservation has become a pretty high priority for most homeowners. Here are some great ways to use the least amount of water for those everyday tasks, without limiting your home’s livability and enjoyment. Before making any huge investments or repairs, schedule a ...

Many areas of the United States have naturally high levels of radon gas trapped underground. That gas eventually finds its way upwards, and if your home lies over that exit point your family’s health may be at serious risk. Here is a short overview of what radon gas is, where it comes from, what it can do, and why radon mitigation efforts are so important. What is Radon Gas and Where Does it Come From? Radon is created from the natural breakdown of uranium contained in rock, soil and water; what ...

Televisions have two supernatural talents. They can unknowingly glue you to the couch and can expel enough energy to literally take your money and deliver it to the electric company. Well, maybe they aren’t that severe, but they certainly provide some intoxicating entertainment at an equally expensive price. LCD and plasma screen televisions aren’t exactly cheap and they’re not all that energy efficient either. But, for most homeowners, the value of having a crisp picture and a large screen becomes worth the price. That’s hard to argue against, but if ...

Hardwood floors can be used in both residential and commercial applications. All of the available species of wood, combined with choices for installation methods and the adaptability to multiple decors makes hardwood floors suitable for many different settings. Kitchens and dining rooms are the most common areas for houses, particularly because of how easy they are to care for and maintain. The days of using hard paste wax to keep a shine on the floor, and the ice-like footing that meant, have given way to finishes that need only occasional ...

There are several choices when it comes to designing and decorating the home. Laminate wood flooring is one of those options, and it works for every room in the house. Let’s explore the reasons why for some of the most basics rooms in the house. The most popular room of most houses is the kitchen. It is the central gathering spot for family members, as well as the “heart” of the home. A good quality floor is a must for this room. The advantages of laminate wood floors for this room ...

With the help of some tips from ENERGY STAR, we can more efficiently make use of the rooms in our home. No one enjoys wasting resources, but finding ways to save these resources isn’t always as easy as we’d like. So, here are some great ways to reduce unnecessary water usage and to increase your Connecticut home energy savings. The Notorious Bathroom Most people use the bathroom to take a load off – you can be as creative as you’d like with that phrase. The point is that the bathroom can provide ...

In appears that an epidemic has broken out in the metropolitan city of New York. Hundreds of thousands of people are calling on the pest control experts to help rid their homes of the small biting insects that suck the blood of their human hosts. Throughout the five boroughs there has been increased activity by the ever growing population of parasitic insects. With a large human population to feed on, the problem with the bed bugs has many NYC residents concerned about their health and safety. Although bed bugs do ...

Gleaming hardwood floors are the desire of many homeowners. Adults enjoy the warmth, solidity and endurance; children appreciate an area of wood on which to play. A stack of blocks rests steadier and miniature cars run faster and smoother on wood flooring than on carpet. With the advent of the latest urethanes, rendering floors almost impervious to moisture and scratches, every room in the house has the potential of a beautiful hardwood floor. It takes well to stenciling or faux painting, such as trompe l’oeil, for a three-dimensional impression. Mixing ...

One of the biggest decisions a homeowner must make regarding hardwood flooring is how to have it installed. A new floor can be put in through a trusted contractor or a do-it-yourself project. There are advantages and disadvantages to both, depending on the homeowner’s situation, budget and ability. Do-It-Yourself Installing hardwood flooring takes patience, time and use of the proper tools and techniques. For those who would like to do it but have no experience, it might be a good idea to enlist a friend or family member who is experienced ...

Do you believe that hardwood flooring could transform your house into a home? These types of improvements are beautiful additions to any living space, but may be expensive to have installed. If you and your family have decided upon investing in a new floor, then here are some tips on how to make the process run as smoothly as possible. The first step you will want to make is to know exactly where you will want the new flooring to be. Take your vision of home decor and modify it into ...

Before choosing a personal trainer, there are many things to consider. The amount the professional will work with you to devise a plan to meet your own goals, the aspects of your health and appearance you would like to improve, and the level of nutritional advice all come into play. There are a variety of very important things to consider when choosing a personal trainer. Many of us are concerned daily with our outward appearance. This, however, is not our only concern. Health and fitness not only affect our physical appearance ...

I’m sure most of us can think of ways we’d rather spend our cash than on boiler servicing, but unfortunately it’s a necessary evil. Professionals recommend you book your boiler in for a service every 12 months, and if you’re a landlord this is a legal requirement for every property you let out. But what can you do in between servicing to ensure your boiler is as safe and efficient as possible? 1. Get a carbon monoxide alarm You wouldn’t even consider not having a smoke alarm in your home, so ...

Back in the day, people designed their rooms by visiting a store, squinting at small floor tile squares or wood planks and trying to imagine what a room would look like. This often required a lot of driving and walking around, with the end result not always turning out quite the way the homeowner expected. With new technology and innovations of the Internet, consumers can now design a room online to create the ideal room. This allows the homeowner to enjoy the comfort and convenience of their computer as they ...

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There are different methods of termite control. Timely application of these methods helps you to prevent their horrible infestation. Read on to learn more. Drywood termites are famous for their uncanny capability to ruin and damage furniture and wooden items. Unlike other species, these types of wood eaters require a very minimal amount of moisture in order to survive. A major problem with this species is that infestations do not often become apparent until the issue has hit a larger scale. By this time, it’s much to late to counter an ...

While steel has been used for a long time in construction, it is now very common to see entire structures made from it. In both cities and rural areas it has been used to construct factories and various industrial facilities alike, but it is now not uncommon to see metal buildings used as a replacement for those old barns, storage sheds and even farm houses. There are many reasons to choose this type of building as opposed to traditional construction methods. It is more durable than wood or even siding and ...

Need a little helping hand with a home improvement project? Your solution may be at home, maybe sitting in front of the television set. For those with children old enough to be responsible in a task, what follows are some tips to get them to lend you a little bit of assistance in something that they, too, can be proud of having a hand in. Treating them Like a Real Handyman Giving them a chance to take on a job like this around the house is a great idea for you and ...

Just about any household appliance can be a key element to someone’s daily routine. If a dishwasher or oven stops working properly, the results could end up inconveniencing you to an annoying degree. A lot of people figure they can go online and do a little research and fix things on their own. However, the simple fact behind most home appliance repair is that it requires proper experience and know-how. Seeing as how a repairman can be costly, here are some pointers on how to enlist a skilled handyman. Time is ...

As most anyone can guess, roofing is no easy job. The hours are long, and if the weather isn’t the best, it can be somewhat miserable. There are quite a few benefits, but in order to get through any type of roofing project, you’re going to need the right set of tools. From hip runners to all in one hammers, a roofer’s tool set is made up of a unique assortment of items designed to keep them safe and ensure the job gets done right. In this article, we will ...

Is the TARP program a failure or a success? It depends on whether you ask Wall Street or Main Street.

Irvine Home Address ... 117 ROCKWOOD 55 Irvine, CA 92614
Resale Home Price ...... $289,000

Winners and losers, turn the pages of my life
We’re beggars and choosers, with all the struggles and the strife
I got no reason to turn my head and look the other way
We’re good and we’re evil, which one will I be today?

There’s saints and sinners
Life’s a gamble and you might lose
There’s cowards and heroes
Both have been known now to break the rules

Social Distortion -- Winners and Losers

The story of the TARP program has been about winners and losers. Contrary to the much touted goal of preventing foreclosures, the TARP program is primarily designed to prop up our ailing banks. In this regard, it has succeeded. As for helping loan owners stay in their homes, not so much. Of course, the loan owners have benefited from amend-extend-pretend because they have been allowed to squat, but people don't want to squat, they want to own their homes with a reasonable payment. Unfortunately, they paid so much that owning with reasonable payments is not going to happen.

SIGTARP Quarterly Report (PDF)

Office of the Special Inspector General for the Troubled Asset Relief Program

General Telephone: 202.622.1419 Hotline: 877.SIG.2009

SIGTARP@do.treas.gov

www.SIGTARP.gov

October 2010

More than two years have passed since the Emergency Economic Stabilization Act of 2008 (“EESA”) authorized the creation of the Troubled Asset Relief Program (“TARP”). On October 3, 2010, Treasury’s authority to initiate new TARP invest- ments expired, marking a significant milestone in TARP’s history but also leading to the widespread, but mistaken, belief that TARP is at or near its end. As of October 3, $178.4 billion in TARP funds were still outstanding, and although no new TARP obligations can be made, money already obligated to existing programs may still be expended. Indeed, with more than $80 billion still obligated and available for spending, it is likely that far more TARP funds will be expended after October 3, 2010, than in the year since last October when U.S. Treasury Secretary Timothy Geithner (“Treasury Secretary”) extended TARP’s authority by one year. In short, it is still far too early to write TARP’s obituary.

At the same time, TARP’s two-year anniversary is a fitting time for an interim assessment. To what extent has TARP met the goals set for it by the U.S. Department of the Treasury (“Treasury”) in announcing TARP programs and by Congress in providing Treasury authorization to expend TARP funds — avoiding financial collapse, “increas[ing] lending,” “maximiz[ing] overall returns to the taxpayers,” “provid[ing] public accountability,” “preserv[ing] homeownership,” and “promot[ing] jobs and economic growth” — and at what cost? In answering these questions, it is instructive to compare TARP’s impact on Wall Street with its impact on Main Street. By fulfilling the goal of avoiding a financial collapse, there is no question that the dramatic steps taken by Treasury and other Federal agencies through TARP and related programs were a success for Wall Street. Those actions have helped garner a swift and striking turnaround, accompanied by a return to profitability and seemingly ever-increasing executive bonuses. For large Wall Street banks, credit is cheap and plentiful and the stock market has made a tremendous rebound. Main Street, too, has reaped a significant benefit from the prevention of a complete collapse of the financial industry and domestic automobile manufacturers, the ripple effects such collapses would have caused, and increased stock market prices. Main Street has largely suffered alone, however, in those areas in which TARP has fallen short of its other goals.

As these quarterly reports to Congress have well chronicled and as Treasury itself recently conceded in its acknowledgment that “banks continue to report falling loan balances,” TARP has failed to “increase lending,” with small businesses in particular unable to secure badly needed credit.

As an aside, I note that I was contacted by my bank and asked if I wanted a credit line for my new business. When I said, no, I run a cash business trading in hard assets, the loan officer told me they are getting pressure to extend these credit lines, and if I change my mind, they want to loan money.

Indeed, even now, overall lending continues to contract, despite the hundreds of billions of TARP dollars provided to banks with the express purpose to increase lending. As to the goal of “promot[ing] jobs and economic growth,” while job losses may have been far worse without TARP support, unemployment continues to hold at roughly 9.6%, 3% higher than at the start of the program. While large bonuses are returning to Wall Street, the nation’s poverty rate increased from 13.2% in 2008 to 14.3% in 2009, and for far too many, the recession has ended in name only. Finally, the most specific of TARP’s Main Street goals, “preserving homeownership,” has so far fallen woefully short, with TARP’s portion of the Administration’s mortgage modification program yielding only approximately 207,000 (out of a total of 467,000) ongoing permanent modifications since TARP’s inception, a number that stands in stark contrast to the 5.5 million homes receiving foreclosure filings and more than 1.7 million homes that have been lost to foreclosure since January 2009.

I find the blunt truthfulness of this report refreshing. I am amazed this came from our own government.

 

On the cost side of the ledger, the results have been mixed as well. It is undoubtedly good news that recent loss estimates continue to suggest that the financial costs of TARP may be far lower than earlier anticipated, with the most recent estimates placing the dollar loss at between $51 billion and $66 billion. But costs can involve far more than just dollars and cents. Any fair assessment of TARP must account for other costs that, while more difficult to measure, may be even more significant. For example, as SIGTARP has noted in past quarterly reports, increased moral hazard and concentration in the financial industry continue to be a TARP legacy. The biggest banks are bigger than ever, fueled by Government support and taxpayer-assisted mergers and acquisitions. And the repeated statements that the Government would stand by these banks during the financial crisis has given a significant advantage to the larger “too big to fail” banks, as reflected in their enhanced credit ratings borne from a market perception that the Government will still not let these institutions fail, although the impact of this cost may be blunted by recently enacted regulatory reform.

Indeed our big banks are in a race to see who can get too big to fail. Once there, they no longer have to worry about maintaining good financial ratios, making good loans that will get repaid, or sacrificing short-term gains for long-term growth.

Another even more fundamental non-financial cost, as SIGTARP warned in October 2009, is the potential harm to the Government’s credibility that has attended this program. Despite the recent surge in reporting on TARP’s successes, many Americans to continue to view TARP with anger, cynicism, and mistrust. While some of that hostility may be misplaced, much of it is based on entirely legitimate concerns about the lack of transparency, program mismanagement, and flawed decision-making processes that continue to plague the program. When Treasury refuses for more than a year to require TARP recipients to account for the use of TARP funds, or claims that Capital Purchase Program participants were “healthy, viable” institutions knowing full well that some are not, or when it provides hundreds of billions of dollars in TARP assistance to institutions, and then relies on those same institutions to self-report any violations of their obligations to TARP, it damages the public’s trust to a degree that is difficult to repair. Similarly, when the Government promotes programs without meaningful goals or metrics for success, such as its mortgage modification programs, or when it makes critical and far-reaching decisions without taking an even modestly broad view of their impact, such as pushing for dramatically accelerated car dealership closings without considering the potential for devastating job losses, or when it fails to negotiate robustly on behalf of the taxpayer, as it did when agreeing to compensate American International Group, Inc.’s (“AIG”) counterparties 100 cents on the dollar for securities worth less than half that amount, the Government invites public anger, hostility, and mistrust. And by doing so, it dangerously undermines its ability to respond effectively to the next crisis.

Interesting that this report documents exactly how the government corporatocracy is screwing us.

While TARP is arguably moving to a new phase, recent actions this past quarter unfortunately suggest that the risks it poses to the public’s trust in Government will continue. Indeed, two areas of the greatest anticipated spending going forward — the Home Affordable Modification Program (“HAMP”) and the AIG recapitalization plan — highlight those risks.

This rather scathing report has generated some uncomfortable questions at the Congressional Oversight Panel.

Schwartz to Congressional Oversight Panel: HAMP gets a bad rap 

The government's much-criticized Home Affordable Modification Program helped set the stage for a successful private loan modification effort that likely wouldn't have gotten off the ground without it, said Faith Schwartz, former executive director of Hope Now.

If that is true, I wish this program had never started. Loan modifications do nothing but provide false hope to loan owners and extend this crisis.

Schwartz testified Wednesday before the Congressional Oversight Panel on the Troubled Asset Relief Program, in a hearing about TARP foreclosure mitigation programs.

"The HAMP roadmap set the stage for servicers to better apply solutions for distressed borrowers who failed to meet the HAMP requirements," Schwartz said in written testimony submitted to the panel.

"The Home Affordable Modification Program (HAMP) has received criticism, in part, because it did not immediately produce certain projected numbers of permanent loan modifications," she wrote.

The program has also been criticized by people like me who think it should not exist at all.

"This criticism is not entirely accurate," according to Schwartz. "HAMP has played an important role by helping to organize the participants and process in the loan modification effort and instituted a loan modification protocol that would have been difficult to mandate in any other way.  Hope Now and government agencies attempted this in 2008 through the streamlined modification program, but it did not reflect all investors and primarily focused on GSE-owned loans.  That was a start, but the HAMP program expanded and formalized those initial standards for loan modifications."

The Hope Now Alliance was formed in 2007 to expand and better coordinate the private sector and nonprofit counseling community to reach borrowers at risk.

"Early on, the goal of the Alliance was simple: reach at-risk borrowers that had no contact with their servicer," Schwartz said. "Research showed that over 50% of all foreclosures involved homeowners who were not in contact with their servicer."

Have you noticed rumors of principal forgiveness crop up whenever lenders want to get people to contact them? I think they use that as a bait-and-switch enticement to get people to contact their lender.

The alliance established a hotline, organized community outreach events, sent letters to delinquent borrowers and launched a website.

It also established HOPE LoanPort, a Web-based system that enables for uniform intake of an application for a modification, allows stakeholders to see the same information in a secure manner, and delivers a completed loan package to the servicer that is actionable. The pilot program includes 14 large mortgage servicers, representing a majority share of the market.

Everyone knows how slow and inneficient government programs are. As soon as the government got involved, it should have been apparent to everyone that by the time they got their programs working, the majority of loan owners would already be foreclosed on.

"HAMP modifications offer a well-defined safety net for borrowers as a first line of defense," Schwartz said. "As evidenced by Hope Now data, servicers are implementing significant modifications after reviewing for HAMP eligibility by offering alternative modifications in lieu of foreclosure. Servicers report proprietary non-HAMP solutions run almost three times greater than HAMP modifications due to eligibility challenges."

"These are modifications that do not require taxpayer dollars and they are meant to benefit the homeowner and investor in lieu of foreclosure," she said.

HAMP should not exist. It has largely been a failure; and in that, I think it was a success.

Get as much as possible as quickly as possible

One of the lessons the Ponzis learned from the housing bubble is that they need to refinance as soon as a new comp gives them some equity, and they need to keep borrowing to the full extend of their borrowing power. Besides the immediacy of the spending money, it gives them downside protection. When the market inevitably crashes, they have already sold the property to the bank for peak pricing. Then they get to walk away, and while the air comes out of the bubble, they can repair their credit to get ready for the next cycle.

• The owner of today's featured property paid $170,000 on 10/3/2000. He used a $163,150 first mortgage and a $6,850 down payment.
• On 8/20/2002 he refinanced with a $189,000 first mortgage.
• On 7/30/2003 he refinanced with a $189,200 first mortgage.
• On 8/29/2003 he refinanced with a $201,000 first mortgage.
• On 10/23/2003 he obtained a 21,500 stand-alone second.
• On 3/25/2005 he refinanced with a $251,000 Option ARM with a 1% teaser rate.
• On 1/10/2006 he refinanced with a $328,000 Option ARM with a 2% teaser rate. and obtained a $90,000 HELOC.
• Total property debt is $418,000 plus negative amortization and almost two years of missed payments.
• Total squatting time is about 20 months so far.

Foreclosure Record
Recording Date: 08/16/2010
Document Type: Notice of Default

Foreclosure Record
Recording Date: 11/19/2009
Document Type: Notice of Rescission

Foreclosure Record
Recording Date: 06/18/2009
Document Type: Notice of Default

Do you ever wonder when I will run out of these? Irvine is supposed to be an upscale neighborhood where everyone makes hundreds of thousands of dollars a year. Why do we have so much HELOC abuse? Why are so many losing their homes due to their excessive borrowing? Could it be that Irvine is a facade? How much of Irvine is populated by posers trying to impress other posers?

Irvine Home Address ... 117 ROCKWOOD 55 Irvine, CA 92614

Resale Home Price ... $289,000

Home Purchase Price … $170,000
Home Purchase Date .... 10/3/2000

Net Gain (Loss) .......... $101,660
Percent Change .......... 59.8%
Annual Appreciation … 5.2%

Cost of Ownership
-------------------------------------------------
$289,000 .......... Asking Price
$10,115 .......... 3.5% Down FHA Financing
4.29% ............... Mortgage Interest Rate
$278,885 .......... 30-Year Mortgage
$55,099 .......... Income Requirement

$1,378 .......... Monthly Mortgage Payment

$250 .......... Property Tax
$0 .......... Special Taxes and Levies (Mello Roos)
$48 .......... Homeowners Insurance
$490 .......... Homeowners Association Fees
============================================
$2,167 .......... Monthly Cash Outlays

-$125 .......... Tax Savings (% of Interest and Property Tax)
-$381 .......... Equity Hidden in Payment
$16 .......... Lost Income to Down Payment (net of taxes)
$36 .......... Maintenance and Replacement Reserves
============================================
$1,713 .......... Monthly Cost of Ownership

Cash Acquisition Demands
------------------------------------------------------------------------------
$2,890 .......... Furnishing and Move In @1%
$2,890 .......... Closing Costs @1%
$2,789 ............ Interest Points @1% of Loan
$10,115 .......... Down Payment
============================================
$18,684 .......... Total Cash Costs
$26,200 ............ Emergency Cash Reserves
============================================
$44,884 .......... Total Savings Needed

Property Details for 117 ROCKWOOD 55 Irvine, CA 92614
------------------------------------------------------------------------------
Beds: 2
Baths: 1 full 1 part baths
Home size: 917 sq ft
($315 / sq ft)
Lot Size: n/a
Year Built: 1980
Days on Market: 65
Listing Updated: 40474
MLS Number: S630604
Property Type: Condominium, Residential
Community: Woodbridge
Tract: Othr
------------------------------------------------------------------------------
According to the listing agent, this listing may be a pre-foreclosure or short sale.

Price Reduction!!! CLEAN UPSTAIRS 2 BEDROOM, 2 BATH CONDO. BEAUTIFUL VIEW OF PARK/GREEN BELT. GREAT FOR FIRST TIME BUYERS/INVESTORS AND WONDERFUL FAMILY COMMUNITY. WOODEN BLINDS THROUGHOUT. NEWER CARPET AND PAINT. SEPARATE DINING ROOM.

Good for investors? Sure, I want to pay $289,000 to obtain $1,700 a month in rent, and give $490 a month to the HOA. Only a kool aid intoxicated fool would consider this a good investment.
 

 
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1. NARdi Gras in New Orleans - Come Get A Free 60 Second Video
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NARdi Gras in New Orleans - Come Get A Free 60 Second Video

It's that time of year once again.  We're packing up and getting ready to head out to New Orleans for the Annual NAR Convention, ActiveRain RainCamp, and REBarCamp.  I might even get lucky and make it to the Earth, Wind, and Fire concert.  WOW, what an action packed week this is going to be. 

Are you going?  If these aren't enough great reasons to attend this year, then maybe this will be an added incentive to get you there.  I'm hoping you'll at least come by and see me at our booth.  Here's why...

A Free Offer to Zillow Premier Agents Attending NARdi Gras

Agents attending the NARdi Gras 2010 event in New Orleans are most certainly going to be hearing about the power of video in their Internet marketing and Branding strategies.  We'd like to do something special and unique for our Premier Agents at NARdi Gras this year: Help you shoot a free 60 second video!

 

Zillow has partnered with Yahoo! Real Estate and vscreen to offer you the opportunity and chance to shoot a complimentary 60-second video. Once the video is created and produced, you can include it on your Zillow Profile, ActiveRain Blog, Website or anywhere else you see fit.  Adding video to your online profiles is a great way to personalize your brand and separate yourself from the competition.

Our free video offer will be available to the first 200 Premier Agents who sign up at the Zillow Booth (Booth #645) and will be available on a first-come, first-serve basis.  It's just one way of saying THANK YOU for your business, while also offering a tool and service that will enhance yours! Come one, come all, but come early and sign up.

See you all in New Orleans! Remember, we're at the Zillow Booth #645

The Best of NAR 2009 - Here's a few of the Top Technology Vendors I recorded at last years NAR Convention and Expo.

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