From a site I never heard of before, called Reason.com:

“Something called the National Consumer Law Center criticizes state mortgage-mediation schemes as well as the Obama Administration’s Home Affordable Modification Program, which at last count had managed to prevent 235,247 homes from coming onto the market. However, data from the Federal Reserve and the Office of the Comptroller of the Currency indicate that even when these programs succeed, about half of all the renegotiated loans end up back in default soon afterward.

In those cases, the renegotiation has made things worse for everybody. The lender ends up with lower payments in the short term and then has to foreclose on a less-valuable property at some point in the future. The borrower gets no financial upside and (though he or she gets the use of a subsidized domicile for some period of time) is encouraged to stay in a losing situation when immediate foreclosure would have been a more merciful option. Prospective buyers get locked out as dumb lenders, deadbeat borrowers and the government all collude to keep the price of the house artificially inflated. And taxpayers have to spend $75 billion (the budget of HUD’s Making Home Affordable program) for the privilege of making it all happen. The best option for all concerned would be to get the deadbeat out of the house as quickly as possible, but nobody is doing that.

Put it all together, and throw in mainstream media outlets that as recently as June were calling for mortgage haircuts specifically to allow people to keep borrowing against their houses, and you’ve got the mother of all perfect storms mixed with the crack cocaine of third rails on steroids. The foreclosure wave may seem all tired and 2008, but it’s hotter than ever.”

#mce_temp_url#

Come to the Branchburg Country Fair at White Oak Park this Saturday, September 26! Great crowd, lots to do, WDVR and fireworks at 8 PM.

http://www.branchburgcountryfair.com/

I actually made this call close to two years ago, on NJ Real Estate Report. You gotta believe it’s as sure a bet as the sun coming up tomorrow. Given the fact that: 1) a buyer who puts down only 3.5%- then has the seller give it back to pay closing costs- is underwater the minute the ink dries on the closing documents; and, 2) all the originators, brokers and processors who brought you the subprime phenomenon moved over to FHA when the water was adjudged to be suitably warm…and we have all the elements in place for a 10-megaton financial discharge that should pretty effectively kill-shot the economy.

If you think this is overstatement, just repeat this to yourself a few times:

“The only viable mortgage insurer left in the United States is the taxpayer.”

FHA has added to the general sense of impending doom by issuing a statement proclaiming that everything is just happy-happy-joy-joy. Even though they are tapped out of cash reserves:

Plumbing and electric are completely updated (2006). 4/5 bedrooms, 3.1 new baths. Hardwood floors, wrap porch, eat-in kitchen. Light fixtures included. Short sale; subject to 3rd party approval. Roof may need replacement, and porch needs minor repair. Update on 9/21: porch has been repaired, and other repairs are underway! For $289,000, someone is going to get a great buy on a superb home.

For more info and photos, go to: http://www.chiphughes.com/2688141

Could this explain why banks aren’t looking to lend?

How do we square this with any kind of talk of recovery being underway?

You can’t beat this for a big home in Clinton. There’s a giant, multi-level deck for entertaining; both a woodburning fireplace and wood stove; a beautiful pool; and, a location that allows you to walk to town and the kids to walk to school. You might expect all this to come with a handle well into the 4’s, but this gem is only $395,000.

Needless to say, there’s been plenty of activity on this home. To view more photos, info and a Virtual Tour, go to www.chiphughes.com/2706691

Here’s a gem of a townhome in one of Quailbrook’s best sections, offered at a value price of $289,000. Heritage’s amenities also include a pool. Of course, this location guarantees that you’re just minutes away from Rutgers, Rt 287 and shopping. The owners have updated this place nicely, and it is a notch above your usual grimy, beat-up Quailbrook townhouse:

There has been excellent activity on this home since the day it was listed, and I expect it to go under contract soon.

For more info, photos and a Virtual Tour, go to www.chiphughes.com/2706954

From the Somerset Reporter, NJ.com (8/28/09):

Pedals for Progress, in its continuing effort to recycle bicycles properly, is having a used bike collection sponsored by the Branchburg Rotary Club.

Anyone with an adult or child’s bicycle in repairable condition is urged to donate their bike. Bikes for parts or disassembled bikes are not accepted. Bikes can be dropped off from 9 a.m. to noon Saturday, Sept. 19 — rain or shine — at the Branchburg Municipal Building, 1077 Route 202 North.

Pedals for Progress collects 8,000 to 9,000 bicycles annually and transfers this material wealth to those in need. To date, more than 120,000 have been shipped to developing countries in Latin America, Africa, and the Pacific Islands. In these countries the bikes are reconditioned by partner agencies and distributed at low cost to poor working adults.

These bikes provide them with reliable transportation for commuting to work, transporting produce to market, or accessing health care and other services. Steady employment for these adults is vital to the development and success for these economies.

It costs $35 to collect, process, ship, rebuild and distribute each bicycle. A donation toward shipping costs is necessary (suggested minimum $10 per bike). All cash and material donations are fully tax deductible and a receipt will be available at the collection site. The organizers will also accept working portable sewing machines.

Pedals for Progress is a 501c3 corporation and a registered charity in the states of New Jersey, Pennsylvania, Kansas, Connecticut, Massachusetts and Vermont. Brochures explaining this program will be available at the collection site. The organization also seeks donations of wrenches for our overseas shops. For detailed information about overseas projects and a current schedule of bicycle collection, visit p4p.org.

For more information about the local collection, call Dan Matyola at 908-725-3322 or Kip Bateman at 908-526-3600. In honor of Rosh Hashanah, arrangements can also be made to drop off bikes at Re/Max Hills and Valley, 1031 Route 202, Branchburg during the week prior to Sept. 19. Call Chip Hughes at 908-334-2329, or just drop off at the back door.