On August 8, 2008 I wrote about the eminent takeover of Fannie and Freddie Mac by the Government.   Well it seems like it is finally here.  It seems that something major will be released before the weekend.  New information being released just after both companies experience a major drop in their stock suggests that the plan is all but complete.  Once the Government takes the companies over they will have unlimited supplies of cash to originate new loans.  This will come courtesy of you the "Tax Payer". 

This creates a major shift in how our loans function.  When the Government takes both companies over it will be the Tax Payer who will carry the gain or lose from all mortgage loans serviced by the two companies.  The immediate future will be very bleak.  Foreclosure are still scheduled to rise regardless what the industry tell you.  We will not see the bottom till 3rd Quarter of 2009 or as late as 2nd Quarter of 2010.  After 2010 we will return to normal real estate growth of 5.9%, which was typical prior to the recent boom.  

What really worries me is that for the next two to three years the Government will incur losses from both companies that will be in the hundreds of billions.  Where will that money come from.  It will probably be added to the ever growing deficit.  We are deferring a problem that our kids and grandkids will have to deal with.  The Government of today is operating much like the typical American consumer.  Imagine the Government Deficit as a credit card or Mortgage which they keep using or refinancing until at some point there is no more credit available.  

Our next President  whether Republican or Democrat will enter a no win situation.  The history of the next office will be marred by the financial crisis we face for the next 3-7 years.

For some more information see news.yahoo.com/s/ap/20080906/ap_on_bi_ge/mortgage_giants_crisis

X-Paste Toothpaste Dispenser

know this has nothing to do with Real Estate or Mortgages but I think that it is such a cool gadget that it was worth sharing.  I have seen it around the net, but never able to buy one.  Finally I found it on Ebay and ordered one. 

It is a Toothpaste Dispenser designed by X-Paste.  It is made of a high quality chrome and functions with ease.  Installation was a piece of cake.  Simply took it out of the box and pressed the suction cups on my tile wall.  I then inserted my favorite toothpaste and it worked like magic.

My bathroom looks so nice and clean and when it comes to brushing your teeth, all you do is pickup your toothbrush and insert it in the base of the unit and press until you get the desired amount of toothpaste.  It really makes things simple.  I can’t understand why it has take so long for someone to invent this.  I would think that all of us thought of this at some point or another.  If you want one check out the link below.

I did check out TouchandBrush and will take your order but never deliver the product.  It also seems to be in a cheap ABS imitation.  Make sure your stay away from that site.  Their customer service will tell you its on order and should be in anytime now.  I ended up waiting for over 3 months and they still don’t have it.

Reuters reported that Countrywide Financial Corp the largest U.S. mortgage lender was being investigated by the FBI for possible securities fraud.  Share followed by dropping 14 percent to a 13-year low on Monday.

Bank of America Corp, No. 2 U.S. bank, will move still continue forward with its roughly $3.7 billion acquisition of Countrywide regardless of the news.  Investors showed concern that Bank of America may cancel its purchase, but when all said and done it is still expected to conclude by end of third quarter.

Scott Silvestri, a Bank of America spokesman, said Monday: "The transaction is on track."

Countrywide, based in Calabasas, California, is currently in battles on several lawsuit fronts and regulatory compliance issues. 

Countrywide in my opinion will become a memory soon, but not before it become a time bomb for Bank of America.  Sure Bank of America is strong and has deep pockets, but will it be worth it for them in the long run.  Knowing first hand how poorly Bank Of America has handled its Wholesale department in the past, they had better not make the same mistake again.  Bank of America invested the first 2 Billion into Countrywide knowing that they would soon be up for grabs.  Countrywide has a great infrastructure that has made them the bohemian that they are.  I am sure that Bank of America will make the same mistake with Countrywide that they did with its own Wholesale division.  In the end they will dilute any benefit that Countrywide’s current systems have and end up with only the tax write-offs. 

Real Estate Consumer Group is an idea that has been in my mind for over a year. I have been in the Real Estate and Mortgage Industry for over 17 years. I wanted to create a website that offers the consumer valuable information regarding real estate, foreclosures, short sales and mortgage loans. I will provide information to the consumer who is looking to get a good loan or purchase real estate or both. I will also provide information on this site to help people who want to make money in Foreclosures and Short Sales.

I will probably have to remain anonymous for now, because the information and my view that I will share with you on this site will probably offend some of my peers. I work mostly as an investor now, but I still think I might have to create a pseudo name.

Please add me to your rss feed, opt in to my mailing if you prefer or at least bookmark this website. I will begin posting shortly just give me time to finish my website.

Sincerely,

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