California Insolvency!

2009-06-30: Federal Judge Blocks Bankrupt California from Reducing Wages of State Workers
U.S. District Judge Claudia Wilken halted the wage cuts on June 25 in response to a lawsuit by the Service Employee International Union (SEIU) on behalf of 250,000--out of a total of 440,000--home care workers that it represents in California.

The judge ordered the state to keep paying the workers, referred to as In-Home Supportive Services Workers (IHSS), up to $12.10 in wages and benefits. [IHSS? WTF?]
...
The union argued that the IHSS program actually saves the state money because it keeps its users from going into nursing facilities that tend to be more expensive.

However, according to a California Senate Office of Oversight and Outcomes report this year, the IHHS program “lacks sufficient oversight and suffers from fraud and abuse.” [How shocking!!]
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Ok, let's do the math... (assume 1000 work hours/year; half-time)

440,000 workers x $12.10/hour x 1000 hours/year = $5.3BILLION

2009-06-30: California poised to issue IOUs to vendors
So far, no banks have committed to honoring the IOUs, said Hallye Jordan, spokeswoman for state Controller John Chiang.

She said banks are probably waiting to see how much interest the state will pay on the IOUs – a figure that won't be decided until Thursday, the same day Chiang is scheduled to issue IOUs. The notes will total $3.36 billion, with about $500 million targeted for the private sector.

2009-06-24: California set to issue IOUs
"Next Wednesday we start a fiscal year with a massively unbalanced spending plan and a cash shortfall not seen since the Great Depression," Controller John Chiang said in a statement announcing that he would be forced to use IOUs to pay the state's bills beginning on July 2.

Kendra Todd - The Lawsuit

Kendra Todd, Uber Real Estate Pumper
(see also, Part 1, Kendra Todd Meets God)

If guilty, perhaps behind bars she will convert to Islam.

* Hat tip Johnnie

2009-06-21: Kendra Todd accused of fraud in lawsuit over homesale
...
But homebuyer Diane Harris probably wished Todd had a different show - perhaps one entitled, "My Closing Costs Are Worth What?"

Harris said Todd used her Apprentice success "to lull unsuspecting victims into her scheme to defraud," according to a Palm Beach County Circuit Court lawsuit filed against Todd by Harris earlier this month.

More specifically, Harris claims Todd defrauded her by inducing her to buy a Texas home in a deal stuffed with financial extras for Todd, "including overcharges and illegal charges, none of which were disclosed." As a result of the added closing costs, plus a high interest rate mortgage Harris couldn't afford, the property is in foreclosure and Harris' credit is ruined, the lawsuit claims.

Harris is suing Todd, mortgage broker Michelle Caldwell, and Todd's company, Kendra Todd Group, a dissolved Florida corporation formerly based in Hypoluxo. The suit, which includes allegations of fraud and breach of fiduciary duty, seeks unspecified money damages.
...
In her lawsuit, Harris claims Todd called the Obra purchase "a fantastic investment opportunity" and that only a few lots still were available for sale. Swayed, Harris said she gave Todd a $7,500 deposit for the purchase of a $88,820 home, the lawsuit says.

Things went south soon after that. Harris's suit said she was told the home would be equipped with appliances. But when Harris went to see the home, she learned the appliances weren't included - but could be purchased through the mortgage loan. So another $1,000 was added to the mortgage, the lawsuit says. (Before it went bust, Obra gained a reputation for luring home buyers in with low-cost home prices and the promise of free appliances.)

In addition to the appliance snafu, other nasty surprises awaited Harris, including an extra $2,000 in deposits owed, the suit claims.

Harris claims she later learned Todd received "kickbacks" from Obra for bringing buyers to the homebuilder, the lawsuit alleges. But Harris' suit said Todd wasn't licensed as a broker in Texas, and therefore couldn't receive kickbacks - or brokerage fees, as Todd described them in closing documents, the lawsuit says.

Harris's suit said she also paid mortgage broker fees to Caldwell, even though she wasn't a licensed mortgage broker in Texas. Caldwell could not be reached for comment, and the company she worked for, Benchmark Mortgage Corp., is listed as a dissolved Florida corporation, according to state records.

Todd, who still owns a Boynton Beach home appraised at $219,276, also could not be reached for comment by presstime. Her publicist said she was in Seattle.
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34 Baytree Cir, Boynton Beach, FL
3 beds, 2.0 baths, 1,577 sq ft
Zestimate®: $180,000

Sale History
04/23/2004: $207,000

Property Appraisal

Barack Hussein Obama

Barack Hussein Obama, President, USA
As if the housing debacle couldn't get any worse, along comes the Commander in Chief Thief to bring "financial rape" to the American Public (The Dumbest Thing I've Seen Yet, Denninger).

2009-06-19: Obama’s Mortgage Program
June 19 (Bloomberg) -- President Barack Obama’s program to help more homeowners refinance may be expanded to include borrowers who owe more than 105 percent of their homes’ values, Federal Housing Finance Agency Director James Lockhart said.

The Obama administration is considering allowing Fannie Mae and Freddie Mac to refinance loans with current loan-to-value ratios of 125 percent or higher, Lockhart said at a National Association of Real Estate Editors Association conference in Washington yesterday.

Roxie Chilcott, Part 2

Roxie Chilcott, Mortgage Broker??
(Part 1)

Well, well, well, what do we have here? I was perusing some old HBHS® posts and after seeing Roxie I thought I would do a little internet search to see if there was any new, publicly-available information on our mortgage broker sweetheart. And what do I find...

Link: Foreclosure Listing

And, San Diego Source: PUBLIC NOTICES (then select "Trustee's Sales")
Notice is hereby given that RECONTRUST COMPANY, N.A., as duly appointed trustee pursuant to the Deed of Trust executed by ROXIE ANN CHILCOTT, AND KEVIN RICHARD KELLY, WIFE AND HUSBAND AS JOINT TENANTS, dated 11/10/2006 and recorded 11/17/06, as Instrument No. 2006-0820873, in Book, Page 11705), of Official Records in the office of the County Recorder of San Diego County, State of California, will sell on 01/22/2008 at 10:00AM, AT THE SOUTH ENTRANCE TO THE COUNTY COURTHOUSE, 220 WEST BROADWAY, SAN DIEGO, CA at public auction, to the highest bidder for cash or check as described below, payable in full at time of sale, all right, title, and interest conveyed to and now held by it under said Deed of Trust, in the property situated in said County and State and as more fully described in the above referenced Deed of Trust. The street address and other common designation, if any, of the real property described above is purported to be: 4046 CAMINITO ESPEJO, SAN DIEGO, CA, 921071521.

Reviewing the house details, it was purchased in '95 for $160K and it sold for $415K after the foreclosure. But the loan amount shown in the foreclosure listing is $468K. Livin' high on the HELOC? Out of curiosity, would this loan have legal recourse?

What is even more fascinating about this foreclosure is that it occurred near the same period of time that Roxie was serving as Pres. CA Assoc of Mortgage Brokers (San Diego Chapter) and was being quoted in the San Diego Union-Tribune (Dec. 07).

4046 Caminito Espejo, San Diego CA 92107
3 beds, 2.5 baths, 1,434 sq ft
Recently Sold: $415,000

Sale History:
06/13/2008: $415,000
02/28/1995: $160,000

Kendra Todd Meets God

Ever notice that when people reach bottom and they can't pimp their BS anymore, they turn to god. Go check out some of Kendra's more memorable past remarks, HERE.

Kendra Todd: "Money is God" (see below)
WTF!!!

Kendra Todd: "the Lord will guide us through this financial crisis"

Wait a second, didn't she help guide people INTO the crisis??

700-Club Video

Kendra Todd: Turn Passion Into Prosperity
“I’m a real estate investor, but that’s just one facet of one part of a bigger picture – teaching people how to develop a healthy attitude and mindset towards money,” she said.

Her best selling book, Risk & Grow Rich targets the challenges and importance of taking risks to create wealth, and directly confronts how our relationship to risk affects our lives.

Her team's main mission is to match buyers with properties that fit their goals, and to help people grow one step closer to financial freedom. And, although Kendra has an in-depth background in real estate, her main goal is equipping people with the knowledge that success and wealth comes from God.

“I’m a strong Christian, and I’m getting ready to launch a Christian biblical based approach to making and saving money, tithing and giving,” she said. “I am getting ready to do what I am passionate about. I want to empower people to create a real positive relationship with and perspective on money, and realize it’s all God.”

Kendra also specializes in financial literacy and believes that it’s important to learn how to save and not be indebted to anyone; learning the biblical foundation on how to approach money and setting yourself up for retirement is key, especially during this current economic crisis. (Hey, what happened to tapping sweet home equity? See: My House is Worth What? )

“It isn’t about you. It’s all God,” she said. “That’s something that I really put out there as one of the fundamental approaches to developing a successful mindset. Turn off the television; the Lord will guide us through this financial crisis. Don’t get overly excited about what the news is saying. Don’t let that dictate how you feel about your current situation.”

Santa Clara Fishing

Is it really a good time to buy?
Is SillyCon Valley really immune?
Answers: No and No

Fasten your seatbelts, SillyCon Valley, the day of reckoning is appoaching.

Here's a random example of the insane bubble.
$630K at the peak.
He $HOOT$, he $CORE$!!!
(but they better convert some of that fiat profit to tangible assets; one way or another, it all has to be given back)

3173 Cabrillo Ave (or Movoto)
Santa Clara CA 95051
3 beds, 2.0 baths, 1,078 sq ft

Sale History
06/25/2008: $500,605 *
05/19/2006: $630,000 (Buy now or be priced out forever! Really?)
06/29/1995: $210,000

For Sale: $430,000

Got Gold?

Is this going to be a growing trend???

Things are getting very, very interesting.

And did you see silver bust through $16?

2009-06-01: Northwestern Mutual Makes First Gold Buy in 152 Years
June 1 (Bloomberg) -- Northwestern Mutual Life Insurance Co., the third-largest U.S. life insurer by 2008 sales, has bought gold for the first time the company’s 152-year history to hedge against further asset declines.

“Gold just seems to make sense; it’s a store of value,” Chief Executive Officer Edward Zore said in an interview following his comments at a conference hosted by Standard & Poor’s in Brooklyn. “In the Depression, gold did very, very well.”

Northwestern Mutual has accumulated about $400 million in gold, and Zore said the price could double or even rise fivefold if the economy continues to weaken. Gold gained 10 percent last month, the most since November. The commodity has more than tripled since 2000, rising for eight straight years. Gold futures for August delivery slipped $4.80 to $975.50 at 4:03 p.m. in New York.

“The downside risk is limited, but the upside is large,” Zore said. “We have stocks in our portfolio that lost 95 percent.” Gold “is not going down to $90.”