Slash and Probe

Lenders are beginning to get the hang of this foreclosure situation, and are now willing to cut prices over and over until someone bites (well, most of them). Some are even starting to undercut the market, by throwing the foreclosed properties on at $100,000 or more discounts, in attempts to get multiple offers and spur a bidding war. Over here, I've seen it work. But in the long run, it seems no matter what they do, the lenders are selling their inventory at significant discounts (Lenders slash prices on foreclosed houses as numbers surge, AP).

That takes care of slashing. Now the probing. AIG is being probed for misrepresenting values of subprime mortgages. The news worried investors, dropping the stock nearly 5% today (AIG faces probe on mortgage contracts: report, Reuters).

etcList
Clinton, Obama hold secret meeting (AP)
Leisure Living: Reverse mortgages more popular (AP)
Freddie Mac CEO tries to reassure battered shareholders (AP)
Despite Interest Rate Cuts, Foreclosures Hit Record High (Washington Post)