Real estate

Did Goldman Sachs induce the collapse of AIG? The SEC is now examining the possibility that Goldman used its leverage in its relationship with the giant insurer to squeeze extra cash out of AIG on its credit default swaps -- and then push it over the edge.

If you owned a house that's now worth a lot less than what you owe on your mortgage, would you walk away from it and default? A new survey indicates that millions of Americans would consider doing so in that situation. If you're among them, here's what you should know.

About 5.1 million mortgage holders will own homes that are worth 75% or less than what they owe on their mortgages.

It's been well-reported that mortgage loan modifications are moving like molasses at big banks. But a little company called Ocwen Financial is using behavioral science to remove the stumbling blocks that get in the way of people trying to keep their homes.

U.S. pending home sales increased just 1% in December, as buyer activity dropped-off with the approach of the the November 30 expiration of the original home buyer tax credit. Congress has since extended and expanded the program through April 30, 2010.

The percent of mortgages backed by the FHA that are in default has risen by a third over the last year. Many of the troubled mortgages were granted in 2007 and 2008, and mortgages typically perform worst in their second and third years.

U.S. construction spending slumped in December for the fifth time in six months, falling 1.2% to close out a record 12.4% spending decline for all of 2009, the U.S. Commerce Department said, as excess housing inventory sidelined private sector construction.

Below are some of the best reads for investors from the Web:

The Good News Economist has some good news! Real estate prices are firming.
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Wall Street II is going to be bigger than Avatar. Watch the trailer in that link and I dare you to tell me otherwise.
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Howard Lindzon chews the fat with friend-of-shortsellers columnist Herb Greenberg, talking about news, thestreet.com, research, shorts, etc.
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Once again, the Big Apple may be ahead of the trend. Manhattan real estate mogul Elie Hirschfeld expects the New York real estate market to recover before other areas of the country as overbuilt office space is absorbed and properties are snapped up in distress and foreclosure sales.

Two investment banks are still betting big on casino properties, even though the Las Vegas real-estate and gaming have buzz worn off. But when the Cosmopolitan opens, as it's scheduled to late this year, the $3.9 billion hotel, funded by Deutsche Bank loans, will be the first Vegas casino owned by a bank.