Ilyce Glink Show Notes – April 18, 2010

Investing, Co-op Sales, Commercial Real Estate

This week’s news:

  • The SEC filed civil-fraud charges against Goldman Sachs for its part in causing the mortgage meltdown.
  • The stock market had another good week. The Dow closed above 11,000, even with the 125-point drop Friday due to the Goldman Sachs charges.
  • Tech company earnings rebounded, making everyone feel pretty good.
  • Foreclosure filing surged to a 5-year high and consumer sentiment slipped this week. In other words, Main Street isn’t feeling as good as Wall Street at the moment – what else is new?
  • Iceland’s volcanic eruption is still causing massive turmoil for European air travel, with many major airports shut down for a third day, causing many world leaders to miss the funeral of the Polish president. Air France said it has been conducting test flights to determine what would happen is volcanic ash got into the engines. So far, no one has crashed. So far…
  • The unemployment numbers surprised everyone this week – and not for the better. In a new map from the Labor Dept, the west is seeing the biggest increases in unemployment. In Nevada, official unemployment rose to 13.4 percent. California, Idaho. Wyoming, New Mexico, Florida, Illinois, Mississippi, and West Virginia have also been very hard hit. It all goes back to jobs, folks. High unemployment means high foreclosures, low home sales and a really awful real estate market.

Today’s calls:

Michael – Commentary on the wacky world of mortgage finance.

Jerry – Owns commercial property and wants to sell. How is commercial property valued?

William – Unemployed since last October and starting to run out of money. Looking for a job. Should he do a loan modification? I suggested talking to CCCS of Greater Atlanta for budget and housing counseling.

Mark – Inherited parents’ home in Florida and intended to be a snowbird, but his wife has cancer. Tried to sell the property, which is a co-op, but the co-op rejected the offer because it didn’t meet the minimums sales price. Is this legal?

Stacey – Called to say she loved last week’s show, especially the guy in mortgage trouble whose mother-in-law is coming to the rescue.

Sharon – Is the U.S. Government going to take my 401k? NO!!! See comments below. If you want to discuss this, please email me links to legislation where this is being proposed or quotes from the Wall Street Journal or New York Times quoting with attribution an Obama Administration official who says this is actually happening.

David: Grandfather left him money 10 years ago. He just turned 23 and found out he is getting $227,000. All he has now are $27,000 in student loans. He wants to put the money away somewhere smart for the future.

I told David to go to and call the financial planners listed to go in for a free consultation. I told him that if he puts this money away now, it will help him for the rest of his life. He could have millions when he retires. It’s a fantastic gift and he should honor his grandfather’s memory by doing something really smart with it. His call today was an excellent first step? Way to go David!!!

Did you miss How To Invest Your Finances in 2010? Listen to the Podcast, available at the store

(I will post comments to the blog later, but feel free to leave yours now.)