"California Foreclosure Activity Hits Three-Year High," as reported by DataQuick Real estate news.

"Second quarter California foreclosure activity rose at the fastest pace in at least 14 years, the result of waning home price appreciation."

A Reckoning With Risk. "Will adjustable-rate loans lead to record foreclosures? Here's an article found in August's edition of U. S. News & World Report.

Buying real estate for a song is alluring, but there are pitfalls that could spell disaster.

"Nationwide interest has spawned an industry of foreclosure mavens as well as countless Web sites, infomercials, how-to books and seminars."

I had the oppostunity to attend one such seminar on Forecloures and Short Sales that was offered by Finanicial Title Company last week and wanted to share some insights.

"Such auctions may have piqued the interest of novice investors anticipating a rise in interest rates and the inability of some owners to meet their financial obligations.

"Yet while there is a tantalizing possibility of getting a deal, people who are intimately familiar with foreclosure auctions — lawyers, mortgage bankers, brokers and former auction regulars — advise steering clear of them."

"Success is not impossible, but to even set foot in the ring you must put in hours of due diligence and overcome myriad obstacles, including competing against auctiongoers who have mastered the art of the bid."

"You really have sharks at these sales," said Bruce Bronster, a partner in the Manhattan office of Dreier L.L.P. — his litigation group has handled more than 3,000 foreclosures. "You're a guppy. And you're going up against very seasoned and sophisticated guys."

This is from an article entitled; "Foreclosure Auctions: Bidder Beware," by Stephanie Rosenbloom of the New York Times.

"You don't know exactly what you're getting," said Melissa Cohn, the president of the Manhattan Mortgage Company. "That's the biggest risk."

For a better understanding of the foreclosure process, here are some links to review, compliments of Financial Title Company;

Foreclosure Timeline - California

Short Sales - Real Estate Preforeclosure
"The forclosure rate is soaring in most areas of the country presenting incredible opportunities for preclosure real estate investors! There are a number of ways the informed real estate investor can profit from homes facing foreclosure and one of the most lucrative is the pre-foreclosure.... SHORT SALE!" What is a Short Sale? Read the entire article HERE.

Trustee Sales - High Risk - High Payoff?
Keep in mind some of the risks and do your homework.

Post Foreclosure - REO Many properties are not sold at the trustee sale. If the minumum bid is not met, the bank becomes the owner of the property, REO (real estate owned).

Top Three Foreclosure Scams and One That Isn't

To Find a Bank's REO/Loss Mitigation Departments Phone Numbers; www.scotsmanguide.com

Labels: DataQuick, Foreclosure, Real Estate Cycles, Short Sale, Trustee Sale, U S News

There's an excellent tribute to John Coltrane in today's San Francisco Chronicle Datebook, written by Greg Tate.

"In an art form more celebrated for its sinners, John Coltrane, who somewhere over the rainbow will turn 80 on Saturday, held the honor of being the music's first saint." The article entitled, "Coltrane at 80 - a talent supreme" can be viewed HERE.

"Bar none, John Coltrane is the most influential tenor saxophonist in jazz history. Whether it's his patented "sheets of sound," his rapid-fire improvisations or his bold cathartic wails, no aspiring jazz saxophonist can afford to neglect the music of Coltrane." Jazz Profiles from NPR, John Dilberto.

Ballads - (No two lovers should be without this CD!!)

"John Coltrane's "A Love Supreme" is one of the most compelling, spiritual testimonies in the history of jazz." - Rolling Stone Magazine Review.

"Without reservation, Blue Train can easily be considered in and among the most important and influential entries not only of John Coltrane's career, but of the entire genre of jazz music as well." - All Music Guide

This Page is a tribute to the greatest Tenor saxophonist of all time, John William Coltrane (Trane)

Labels: Bay Area Jazz, Desert Island Jazz, Jazz, John Coltrane, San Francisco Jazz, Sax

Nightmare Mortgages
"They promise the American Dream: A home of your own -- with ultra-low rates and payments anyone can afford. Now, the trap has sprung." - Mara Der Hovenesian, BusinessWeek Magazine.

"For cash-strapped homeowners, it was a pitch they couldn't refuse: Refinance your mortgage at a bargain rate and cut your payments in half. New home buyers, stretching to afford something in a super-heated market, didn't even need to produce documentation, much less a downpayment."

"The option adjustable rate mortgage (ARM) might be the riskiest and most complicated home loan product ever created. With its temptingly low minimum payments, the option ARM brought a whole new group of buyers into the housing market, extending the boom longer than it could have otherwise lasted, especially in the hottest markets. Suddenly, almost anyone could afford a home -- or so they thought. The option ARM's low payments are only temporary. And the less a borrower chooses to pay now, the more is tacked onto the balance."

The bill is coming due.

"Most of the pain will be born by ordinary people. And it's already happening." This is the message brought to us indepth in an excellet article found in BusinessWeek's September 11, 2006 issue. View it in its' entirety HERE.

More evidence of a coming problem; "Real estate foreclosures rise 18% nationwide." as reported by RealtyTrac.

To view additional BusinessWeek articles on mortgages;
Struggling to keep up with your mortgage?
Mortgage Lenders: Who's Most At Risk?

LoanIQ(TM) allows you to instantly identify high-risk loans and reduce overall loan default exposure. Quickly and accurately fast-track low-risk loans and escalate loans with a higher risk of loss to quality control and due diligence.

And finally, here's your resource for mortgage calculators; www.mortgages.interest.com

Labels: Bay Area Real Estate, Foreclosure, Freddie Mac, Mortgage Lenders, Real Estate Cycles, RealtyTrac