Fannie Mae/Freddie Mac

Oh, boy. Here we go. It all just keeps getting worse. Does anyone else think we should all just close our eyes and ears, rock back and forth a few times and wait until it’s over?

During October, another 85,000 homes were lost. That’s a 25 percent increase over last year, and a 5 percent increase from September. Since last August, almost 1 million homes have been lost. Sure, states like California and companies like Bank of America are doing what they can to stop the bleeding, but it’s time we got some federal legislation that actually works.

You may not know anything about the zip code 95391 now, but you will. That’s because this Central California zip code is “underwater.” Well, at least its homeowners are. Mountain House, California and its surroundings are ranked first in the country for homes that are worth less than their mortgage. And the fun term “underwater” gives a lot of insight into the plight that these individuals face. They’re drowning in debt.

Today, Fannie Mae announced a quarterly loss of 29 billion dollars. It looks like now, more than ever, Fannie and Freddie will be looking for handouts from Washington.

That’s right, it looks like the losses will continue to mount. Clearly, the bailout to American companies has helped to keep many afloat, and somewhat stabilize the stock market, but at the end of the day Main Street can’t pay its mortgage. 29 billion dollars may be a drop in the bucket compared to what could happen next quarter as the world continues to struggle with rising costs. With no end in sight.

Help!

We told you last week that JPMorgan Chase is halting foreclosures for 90 days and is renegotiating $70 billion worth of mortgages, as a means to avoid taking back thousands of homes.

Now, it seems that other lenders are following the company’s lead in an effort to re-brand the mortgage lending business as an industry that cares. But, this isn’t a totally selfless act. Yes, fewer people will get kicked out of their homes, but the banks get to have someone around to pay them something. No matter how small that amount is, it’s better than an empty house full of debt.

JPMorgan Chase is putting a stop to foreclosures…for 90 days, at least. It’s pressing pause on the foreclosure rush while the company starts a program to make foreclosures a little less frequent.

Call it a grace period.

Hey, this is great. Almost one in five homeowners owe more than their home is worth, so this is a truly merciful act. And hey, WaMu customers benefit too.

Here comes the fallout from the housing crisis….766,000 homes received foreclosure notices in the 3rd quarter, up 71 percent from last year. RealtyTrac, a private foreclosure listing service, said that the number of bank-owned properties will likely increase to over a million before the end of the year. If you’ve been saving up, you can probably find a good deal on a house, but it’s bad news if you have a mortgage: Twenty-three percent of Americans with mortgages owe more than their house is worth, and that number continues to rise.

It’s official…I want a tiny house. For only 15,000 bucks, Jay Shafer can build one for you, too.

They have tiny windows, little lofts for sleeping, miniature kitchens, and even a little porch. And all of this is packed into 150 square feet. Sure, you can’t hang on to all of those clothes that don’t fit, and trophies from your faded youth have to go, but who really needs all of that stuff? The houses are so small that they can be hitched to the back of your car and towed anywhere. Oh, and did I mention that utilities are only 15 dollars a month?

It’s a great time to buy a house! Or at least that’s what Coldwell Banker is pushing. The country’s oldest residential real estate company is having a nation-wide 10-day sales event which runs through Sunday. Jim Gillespie, president and chief executive of Coldwell Banker said “We are embarking on this initiative — which has never been done before on a national basis — because we believe it is critical for Coldwell Banker, as an industry leader…to help move the U.S. real estate market in the right direction.” It’s a noble notion, but is it enough to convince people that their money will be safe?

While the rest of the country is reeling from sub-prime home loans and foreclosures, some people are still living the high life. Forbes has just released its list of the country’s most expensive zip codes. This year’s lucky winners are the folks on Fisher Island, Florida - zip code 33109. These South Floridians won the contest with an average home price of 3.85 million dollars….and rising.

The rest of Florida is experiencing negative price growth on homes. In Miami, for instance, prices have dropped by 20% over the past year. Prices on Fisher Island have grown by 525,000 dollars in the past year. How nice for them.

While we’re settling the whole bailout/financial collapse craziness, let’s take a walk down memory lane. It was a hot July, and homeowners were suffering. Congress acted, and passed the ‘HOPE for Homeowners’ program to help struggling citizens. Well…some of them.

Today, that bill goes into effect. Fast turn-around, as these things go. But don’t start smiling just yet…the ‘hope’ is for members only. Oh, and Fannie Mae and Freddie Mac were supposed to underwrite the losses.

Alright…so the market’s shaky. Warren Buffet’s 5 billion dollar investment in Goldman Sachs boosted things today, but who know what will happen tomorrow?

Warren Buffet clearly sees opportunity here. Goldman Sachs is a commercial bank now, and he knows it’s good to buy when there’s “blood in the streets.”

Meanwhile, the FBI is investigating some old giants (Fannie, Freddie, Lehman, and AIG), Bernanke and Paulson are striking out in the Senate, and the US dollar is tanking. Yikes.

So…you have a horse. Maybe you’re really rich, maybe you just love horses. But it’s not enough just to buy the horse…you have to take care of it, too. I know…shocker.

Well, Nassau County has the solution. At the Old Mill horse farm, you can find “affordable boarding” for your horses. Ha ha! Get it? Because so many people are losing their houses and others can’t buy new homes? It’s funny…really.