FreshSuperCool.com

GM, like most other American car manufacturers, is dead in the water. I don’t understand why anyone even consider giving any more money to this financial blackhole. Though I frown upon government bailout of the financial systems due to bad loan, I do not understand why anyone would even consider helping this ailing industry.

Mark Cuban said this the best: if I buy a new car and drive it off the lot (when my new car is worth a couple of grand less), should the gov’t bail me out too? 

This is ridiculous.

We need to let GM and Ford go bankrupt, release all of its pension liabilities, and de-unionize. American cars are great. The American labor force that produces them, not so great. This is the 21st century people. We can’t make progress with 20th century notion of pension, job security, etc. In times of globalization, we need to be quick + efficient, just like China. Don’t believe me?  Just ask a 16 year old kid in China or India who’s doing a job that a 40 year old union member American employee would do… he would do it for 1/10th the wage and no benefit whatsoever (forget pension.. he doesn’t even get coffee breaks!)

(Got this from email. There was no author mentioned in it. Re-publishing for sake of fellow real estate investor education)

If you want to buy a foreclosure property at a bargain below-market price, you need to know how foreclosures work.

STEP 1—LENDER RECORDS A NOTICE OF DEFAULT OR FILES A JUDICIAL LAWSUIT AGAINST THE DEFAULTING HOMEOWNER

The first step in a foreclosure on a mortgage, deed of trust, mechanics’ lien, income tax lien, judgment lien or homeowner’s association lien is to record a notice of default or file a judicial lawsuit against the defaulting homeowner. Exact procedures vary in each state.
The homeowner is given a reinstatement period in which he or she can attempt to cure the default. The speed of the actual foreclosure sale varies widely by state law. It can be as short as 21 days in Texas to as long as six to 12 months in a few states. Three or four months is typical for most states.

During this first step of the foreclosure procedure, the homeowner is free to sell or refinance the property. This period can be a great buying opportunity for purchasers, but they should be aware that they will be buying the home subject to all existing encumbrances on the property.

STEP 2—THE FORECLOSURE AUCTION

The next step occurs when the reinstatement period ends. Then the foreclosure sale takes place.

Depending on the type of mortgage, deed of trust or lien being foreclosed, the foreclosure auction might be conducted by a judge, sheriff, court referee or independent trustee. Foreclosure auction locations include courtrooms, the steps of city hall or even in front of the property.

If there are no bidders at the auction, the foreclosing lender or lien holder usually submits a credit bid for the amount owed, plus legal fees and other foreclosure charges, and obtains title to the property.

Bidders at foreclosure auctions should be aware they are buying the property subject to any prior existing liens, such as a first mortgage if the sale is being conducted by the second mortgage lender.

If there is a recorded Internal Revenue Service lien on the property, the IRS has an automatic four-month redemption period after the sale during which it can buy the property from the high bidder for the amount paid.

STEP 3—BUY AFTER THE FORECLOSURE AUCTION
If you don’t have enough cash to buy at the foreclosure auction, you’re not out of luck. You might still get a bargain wholesale purchase price.

If there were no bidders at the foreclosure sale, the foreclosing lender then would take ownership the property, wiping out any junior liens. Now is the time to reach the lender and bargain.

I’m no Bernanke, but I do understand what balance sheet means. And GM’s balance sheet as of June, 2008…. well… SUCKS:

This company’s balance sheet NEGATIVE $58 BILLION dollars. To me that company’s worthless…

This company that needs to die. Just like homeowners who are under water (i.e. owe more than what the house is worth) foreclose, this company needs to declare bankruptcy. Screw the pensions! Why tax us hard working people so we can fund the pension plans of others?

President Obama, let inefficient companies like this die and let natural markets take its course. Don’t bail them out! (Again!)

I get so riled up. Ok.. BREEEATHE….