Hi Danihoney, Any tips on locating and choosing a proper adviser? Heh... funny you should ask.... I wrote my post a bit earlier, and was actually running around doing my Sunday errands thinking about exactly that. A common refrain you'll see in my posts is "go find a worthy professional advisor, and GET AWAY from the retail clerks & commodity salespeople." The oh-so-obvious response to this is; "OK... and HOW do I go about finding such an Advisor????" Perhaps my not-so-obvious answer to that is also what I used to be so heavily accused of; self-promotion. I really try to give everyone as much of the orienting financial principles as possible (up to the level where people start saying they can't understand a thing I am saying,) and I TRY to show people how to go about finding quality professionals who also understand financial planning including the leverage management pice (which is usually a hidden quarter to half-million dollar piece, or more!) My firm does this... but I'm not really shy of pointing out that we're not the only ones. The trouble is that its not something you can simply flip through the yellow pages to find. I think that first of all I would start from a large list of potential advisors, and then narrow them down by qualifications. A) are they a licensed broker, or banker? Brokers (in most states) have a legal fiduciary duty to you, their client. The brokers (and their licensed loan officers) in such states *MUST* put their clients financial interests ahead of their own. In contrast, licensed bankers (and loan clerks) strictly represent their corporate interests. B) do they offer software-generated leverage/mortgage analysis & plans... either on a fee-only basis, or in conjunction with their financial services? (Some examples of programs used by some; Loan Magic, Equity For Life, Mortgage Coach, Forgotten Equity, and Loan Analyzer.) While actually executing a particular plan doesn't make nor break the quality of a professional... anyone who doesn't even have it as an offer OBVIOUSLY has no way of properly determining what is actually in your financial best interests. Beware the loan salesperson who, when asked about analytical programs, refers to their online application gathering forms, or processing software, or some nebulous secret black-box website only they have access to. The bottom line is if they cannot generate a nice presentable report that gives you a full, graphical explanation of where you are financially, what you are seeking to accomplish, and the future-looking results of several options... they are blowing smoke. C) do they regularly work with real estate investors (and EXTRA points if they are one themselves... "eat their own dog food" so to speak.) D) do they analyze your financials from a holistic perspective? That is to say; do they gather and review *ALL* your financials before making suggestions? Anyone who starts suggesting 6-figure financial debt structures WITHOUT having any clue of your qualified retirement accounts, insurance coverages (life, health & disability as well as property & casualty,) is acting as a dangerous renegade, in my opinion. SO OFTEN the general public randomly takes the "lowest points" 30 FRM (the absolute *MOST* expensive way to borrow money) and throws as much cash into their down payment as possible (the most dangerous cash management moves).... AND THEN they clip coupons, skip latte's, and think they are "conservative & practical." Having someone who truly understands BOTH sides of the financial balance sheet... the assets AND the liabilities... and their interrelationships, is essential to financial success, in my opinion. SO... there ya go (are you sorry you asked?) Cheers, Dave Donhoff Leverage Planner

The company being investigated allegedly mimicks Hope Now, an established non-profit foreclosure prevention counseling organization. Here is a link that might be useful: Attorney-General Investigating Mortgage Co.

"Early twenties tends to be when you have some truly wonderful opportunities to explore life and make your way." If that's what you want fine. I wouldn't change a single thing about my life. I would make the same choices. I enlisted in the AF at 18, had DD at 20, married DH at 21 (he was 22 and just out of the AF) and we bought our first house within the year with help from his father, had DS about 8 months year later and I got out of the AF at his birth and started college when he was 4 weeks old (It was DH's last semester*) . My FIL loaned us $3500 on a $38.5K house which we repaid (he only asked for what he would've made on the money in a Money Market account) when we sold the house for $46K a few years later. Life's been good. Kids are grown and on their own, but are renting because of house prices here in northern VA. I got my degree at the age of 32 (life happened), but I make great money 17 years later. We're on our 3rd house and even in the depressed market it's worth $500K more than we paid for it 14 years ago and we owe very little on it. I'm so thankful that my FIL was willing to take a chance on his 23 yo son and the son's 22 yo wife of 1 year and loan us the money for a down payment on that first house. Those were great times then! DH was in college with only the GI bill and Ready Reserve income, I was an E4 in the AF, we had one child and were trying for our second. I loved that first house - our 1000 sq ft rancher on 1/2 acre in Gloucester County VA. It was white with black shutters, 3 BR and 2 baths and a one car garage with washer and dryer in the garage. Now DH and I have our retirement almost completely saved for (and still 10 more years to put away more money) and we have money to help the kids out (but not too too much, which wouldn't be good for them), plus money for vacations. Our credit history/score has always been perfect. To get back to the topic at hand, there has been good advice for how the son can get a credit "history" fairly quickly, and I would advise that route over buying the house for him outright, or co-signing.

Fannie and Freddie are apparently not blameless "victims" of their own supposed ignorance of what they were doing after all..as some prefer to believe... IF this pans out as true....(time will tell what under the table deals may come about nonetheless)... Of course. These two guys probably have three times that if not more squirreled away in some tax favorable or exempt off shore accounts ..... HALLELUJAH!!!!! Regulator Plans to Bar Big Severance By JAMES R. HAGERTY September 15, 2008; Page A18 The regulator of Fannie Mae and Freddie Mac said Sunday that it won't allow the companies to make "golden parachute" severance payments to the mortgage companies' ousted chief executive officers. In a statement, the Federal Housing Finance Agency said such payments wouldn't be made to Daniel Mudd and Richard Syron, despite provisions in their contracts. Mr. Mudd served as chief executive of Fannie and Mr. Syron was chairman and CEO of Freddie until last weekend, when the regulator seized control of the companies, saying they were in danger of running out of capital. News reports that the two executives stood to receive millions of dollars in severance payments under their contracts triggered public protests from numerous politicians and inspired political cartoons in newspapers. The FHFA cited "applicable statute and regulation" for its decision. The regulator has taken management control of the two companies under a legal process known as "conservatorship," which could last for years while Fannie and Freddie are restored to financial health. The U.S. Treasury has pledged to provide as much capital as the companies need to continue in their role as the main suppliers of funding for home mortgages. The FHFA last week named Herb Allison as CEO at Fannie and David Moffett as CEO at Freddie. Spokesmen for Fannie and Freddie declined to comment on the pay decision. Messrs. Syron and Mudd couldn't be reached immediately for comment. David Schmidt, a senior consultant at James F. Reda & Associates LLC, a compensation consulting concern in New York, estimated that, without the regulator's intervention, Mr. Mudd's exit package could total as much as $6 million to $8 million and Mr. Syron's $15 million. Those totals include pensions, continuing benefits and other payments the companies' boards might grant. It isn't clear what pension and other payments may still be made to Messrs. Syron and Mudd, given the regulator's ruling. The collapse in the share prices of Fannie and Freddie already has wiped out much of the two executives' wealth. Since March, for instance, the value of Mr. Mudd's shares in Fannie has dropped to about $683,000 from $23.7 million.