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The restoration of the single-family rural housing program that would guarantee home loans for rural buyers was passed by the Senate today and is on its way to President Obama. The National Association of REALTORS® has vigorously lobbied to restore funding for the rural program since last March, and hailed this development as a great victory for rural home buyers.“This is going to be a great lift for thousands of rural home buyers who need to close on their home purchases before Sept. 30 to take advantage of the home buyer tax credit,” said NAR President Vicki Cox Golder. “Many rural families would have been left out in the cold without these guaranteed loans. Increasing the commitment authority will help rural families, support local housing markets, create jobs and generate new tax revenues.”“The rural housing program is a good example of the kind of program needed for responsible and qualified home buyers who bring common sense to the housing market,” said Golder. The legislation increases the guarantee fee for borrowers, but allows the fee to be financed. “This change will make the program completely self-sufficient,” she said.Golder thanked Sen. Michael Bennet (D-Colo.), and Reps. Paul Kanjorski (D-Pa.) and Shelley Moore Capito (R-W.Va.) for moving the bill to passage in both houses.The legislation was part of H.R. 4899, “The Emergency Supplemental Appropriations Act” that the Senate passed today. The measure increases the Rural Housing Service commitment authority allowing guaranteed loans; previously, RHS has been providing conditional commitments. The RHS is expected to announce new guidelines shortly after the president signs the bill.More details from NAR. Source: NAR
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Record Lows Continue for Mortgage Rates The 30-year fixed mortgage rate fell to a new low of 4.54 percent this week from 4.56 percent last week and an average of 5.25 percent a year ago.
The 15-year fixed loan rate also hit a record low of 4 percent, down from 4.03 percent a week ago and 4.69 percent last year. The five-year adjustable-rate mortgage averaged 3.76 percent, compared to 3.79 percent last week and 4.75 percent a year earlier; and one-year ARMs averaged 3.64 percent, down from 3.7 percent and 4.80 percent, respectively.
Source: The Wall Street Journal, Nathan Becker (07/30/10)
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It's a Great Time for Housing Deals Paying off an underwater mortgage and buying a better home could be the best tactic in this troubled market.
"If you are trading up, what better time than when interest rates are at record lows and the cost of the trade-up is much less than it used to be?" says Christopher J. Mayer, a Columbia Business School economist.
With 15-year fixed-rate mortgages at about 4.5 percent, it also makes sense to pay off the mortgage and keep the house. "At this point," says Jay Brinkmann, chief economist of the Mortgage Bankers Association in Washington, D.C., "if they don't have anything else that is bringing a tremendous return, then they are buying themselves an annuity by paying their house off sooner than they needed to."
Source: The Wall Street Journal, M.P. McQueen (07/24/2010)
Paying off an underwater mortgage and buying a better home could be the best tactic in this troubled market.
"If you are trading up, what better time than when interest rates are at record lows and the cost of the trade-up is much less than it used to be?" says Christopher J. Mayer, a Columbia Business School economist.
With 15-year fixed-rate mortgages at about 4.5 percent, it also makes sense to pay off the mortgage and keep the house. "At this point," says Jay Brinkmann, chief economist of the Mortgage Bankers Association in Washington, D.C., "if they don't have anything else that is bringing a tremendous return, then they are buying themselves an annuity by paying their house off sooner than they needed to."
Source: The Wall Street Journal, M.P. McQueen (07/24/2010)
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C ommon short sale myths once evidenced widespread confusion about what a short sale is - mostly misconceptions that they are quick, or faster than “normal” real estate transactions. In reality, the “short” in short sale has nothing to do with timing. Short sales usually take many multiples of time longer than traditional real estate deals - running anywhere from 3 to 8 months-plus, on average, from contract to closing!The only thing short in a short sale is the sales price - it is less than, or “short” of, the amount the seller would need to pay off all the loans and other outstanding obligations (tax liens, delinquent HOA dues, etc.) against the property. In these situations, unless the seller is willing to write a check to make up the difference, their lender(s) must agree to forgive the shortfall in order for the sale to close. But most short sale buyers - and sellers - know this stuff by now. With one in four homeowners in America owing more on their homes than they are worth, short sales won’t be going anywhere for a long time to come. And the more people get involved in a short sale transaction, the more confusion and misunderstandings result. Here are 5 of these “next-generation” myths about short sales, and the facts to shatter them:Myth #1: That there is anything typical, standard or normal when it comes to getting a short sale approved.Fact: There’s no such thing as “normal” in a short sale.Some of the most frequently asked questions in the Trulia Voices Community include things like: - Is it normal for a bank to respond to a short sale with a counteroffer higher than the list price and the appraised price?
- What’s the standard amount of time it takes a bank to approve a short sale package?
- What’s the rule of thumb for how much below asking a bank will approve?
Despite the recent goverment “streamlining” efforts that promised to impose a set of standards most banks would follow in processing short sales, it’s still a black box experience for most buyers and sellers. Buyers submit their offers, sellers sign them and hand over all their financials to their listing agent who submits it all to the bank - and then often no one hears anything back for a few months, if ever. Other times, the whole thing is approved in a matter of weeks (though this is much less rare).The bank is in the power position, and can respond to your offer however they want. They may counter at a much higher price and demand a cash payment from the seller. Or not. They may take weeks, or they make take six months. They may approve a way-below asking offer, or require a hundred thousand over the asking price. Forget the idea of standard, when it comes to a short sale. Hint: short sale listing agents who have done a lot of recent, successful short sales with the same bank do often have insider knowledge that is the closest thing to a rule of thumb over what any individual bank’s practices are. If you’re a buyer, prioritize short sales that are listed by short sale masters - your agent will know who they are. If you’re a seller, ask prospective listing agents for a list of short sales they recently closed, including which bank(s) were involved.Myth #2: It’s smarter for homeowners to walk away than to short sell their homes.
Fact: Increasingly, I’m hearing those who own upside down homes ask why they would bother with a short sale, when they could just walk away with much less effort and drama. The reality is that walking away and letting your home go to foreclosure is an extremely serious, personal decision - the wisdom of which varies dramatically owner to owner and state-to-state. Some states allow lenders to sue homeowners who default on their mortgages, and impose state taxes on the mortgage debt cancelled out in a foreclosure, sometimes totalling tens of thousands of dollars. Other homeowners’ family and financial plans would be impaired much less by a short sale than by a foreclosure. For still others, it’s pretty much a wash. For everyone, though, it is faster to recover your credit and ability to take out another mortgage on a new home after a short sale than after a foreclosure.Given that a short sale costs a seller little or nothing except some time and effort, in many instances it is smarter to make the effort to short sale than it is to walk away.Myth #3: A short sale is the same as a pre-foreclosure. Fact: A short sale is a home being sold for less than what is owed on it. A pre-foreclosure is a home that is in some stage of the foreclosure process because the owners are behind on the mortgage payments. Many short sales are pre-foreclosures, because the owners stopped making payments when they put the home on the market, either because they can’t afford them, they are simply done with the property and don’t see a need to continue paying on it, or because they feel the bank is more likely to approve their short sale application if they are in default on their loan (a position many experienced short sale agents argue is true).But not all. Remember, nothing is standard when it comes to short sales. Short sales are closed every day on which the seller is still in good standing on their loan - these are mostly the short sales of owners who elect this strategy out of a desire to maintain their credit as much as possible, but have to move for work or family reasons. Buyers should not assume that every short sale will come on the market later as a foreclosure; they should inquire as to any foreclosure notices against the property, and keep track of those time frames. Many a buyer has been surprised when the bank auctions a property they are in contract to buy.Myth #4: The the buyer’s broker - or even the buyer’s offer - has much to do with getting a short sale approved.
Fact: Writing a clean, well-qualified offer is important to getting a short sale seller to believe that a buyer will hang into the short sale for the duration so they will sign the contract. However, the buyer’s offer and agent have little, if anything, to do with whether the seller’s bank green lights the deal, as needed to close it.While the bank obviously cares about the price you offer, even that’s not as important as several other factors, including: - the bank’s perception of the home’s fair market value (as usually indicated by a third-party broker’s opinion, or an automated computer model),
- the seller’s financials (if they have a bunch of cash stashed, the lenders is unlikely to let them sell the place with no contribution from them)
- the completion of the seller’s workout application package and follow-up (squeaky wheel gets the grease and all that, and it’s the listing agent that needs to be that, often, for these transactions to get closed).
Myth #5. That the bank “can’t” do X or “has to” do Y.
Fact: The seller’s bank in a short sale is being asked to waive debt that they are legally owed. They have the absolute right to simply refuse entirely to accomodate this debt forgiveness request. However, if they do choose to waive some or all of the shortfall, they also have the right to place whatever conditions on that waiver. They can ask for more money from the seller - or the buyer (and often do). They can ask the agents to reduce their commissions (and often do that, too). They can refuse to pay various closing costs, if they want. And the buyer or seller can counter, accept or refuse any or all of the bank’s demands, too, but know that the banks do have the right to place whatever conditions on the short sale they want. After all - he, she or it who has the cash (or the mortgage, in this case!) makes the rules!
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Money really can grow on trees! Cut your grocery bill while improving your landscape by planting and growing a fruit tree. Read
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Save money and grow healthier plants by recycling yard and kitchen waste into nutrient-rich compost. Read
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An edible garden featuring vegetables and herbs can save you a bundle if you keep it simple and raise plants that offer high yields. Read
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Simple, low-cost watering systems help you save water and money but still have a great-looking yard. Read
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Plant a tree to add value to your home and have a positive impact on the local environment. Read
Visit houselogic.com for more articles like this.
Copyright 2010 NATIONAL ASSOCIATION OF REALTORS®
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Consider before you ignore or outright refuse a very low purchase offer for your home. A counteroffer and negotiation could turn that low purchase offer into a sale. Read
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After finding a buyer, all you have to do to make it to closing is to avoid these five traps. Read
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While you’d like to get the best price for your home, consider our six reasons to reduce your home price.
Read
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Have a plan for reviewing purchase offers so you don’t let the best slip through your fingers. Read
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Be sure you’re walking away with all the money you’re entitled to from the sale of your home. Read
Visit houselogic.com for more articles like this.
Copyright 2010 NATIONAL ASSOCIATION OF REALTORS®
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Lenders continue to reject borrowers with
otherwise good credit when they diverge from the standard approval
checklist.
Would-be borrowers facing the most problems
include the self-employed.
One reason bankers are so nervous are the
standards held out by Fannie Mae and Freddie Mac. Not only are Fannie
and Freddie demanding credit scores above 720, they are refusing to buy
back defaults when the original mortgage application had small
discrepancies from the norm. To avoid losses, lenders are being extra
careful.
The result is that some borrowers are being
rejected for problems that seem completely inconsequential.
Source: The Wall Street Journal, James R.
Hagerty and Nick Timiraos (07/10/10)
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Despite declining home prices, 90 percent of
Americans don’t regret buying their current home, according to a survey
for Bankrate.com.
Among the 9 percent who do regret the
purchase, most say they are unhappy that they can’t sell their home and
move elsewhere or they can’t afford their monthly mortgage.
Some 79 percent of those polled say they
have a fixed-rate mortgage on their homes. Among those making over
$75,000 per year, 90 percent say they have a fixed rate mortgage.
Source: Bankrate.com (07/12/2010)
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Despite declining home prices, 90 percent of
Americans don’t regret buying their current home, according to a survey
for Bankrate.com.
Among the 9 percent who do regret the
purchase, most say they are unhappy that they can’t sell their home and
move elsewhere or they can’t afford their monthly mortgage.
Some 79 percent of those polled say they
have a fixed-rate mortgage on their homes. Among those making over
$75,000 per year, 90 percent say they have a fixed rate mortgage.
Source: Bankrate.com (07/12/2010)
Browse
all of today's news
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U.S. home prices, including distressed
sales, increased by 2.9 percent compared to the same month last year,
according to CoreLogic in its monthly index.
May was the fourth straight month prices
showed a year-over-year increase.
"Home price appreciation stabilized as home
buyer tax credit-driven sales peaked in late spring," says Mark Fleming,
chief economist for CoreLogic. "But given that the labor market and
income growth remain tepid, we expect prices to moderate and possibly
decline the rest of the year."
Source: CoreLogic (07/13/2010)
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all of today's news
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10
Steps to Home Ownership
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7 Things All Borrowers
Should Know About FHA Loans
RISMEDIA, July 1, 2010--FHA Pros, LLC, a national FHA condo
approval service, has developed a list of facts speaking to the top
misconceptions associated with FHA loans in order to help home buyers
better navigate an already confusing market. FHA loans are mortgages
issued by qualified lenders and insured by the Federal Housing
Administration (FHA).
“We have seen home buyer interest in FHA loans go from practically zero
three years ago to upwards of 87 percent today,” said Christopher
Gardner, founder and president of FHA Pros, LLC. “Despite this rapid
rise in popularity, many buyers still do not fully understand the
benefits of these loans, and we believe it’s time to change that.”
1. FHA Loans Are Not Only For Lower-Income Borrowers. FHA
loans are available to everyone. In fact, even Bill Gates can get one.
There is no maximum income restriction associated with FHA loans.
Borrowers do need to substantiate income and assets by submitting proper
documentation. This requirement ensures that borrowers are well-vetted
and truly able to afford their future homes.
2. FHA Loans Are Not Only For First-Time Buyers. Many
people believe FHA loans are available only to first-time homebuyers.
This is not the case. Whether borrowers are making their first home
purchase or their fifth, they can look to FHA loans as a home financing
option.
3. FHA Loans Are Not Just Small Loans; In Fact,
Loan Amounts Can Be As High As Almost $800,000. The government recently
raised the maximum loan amount from its original cap of $362,790 to
$793,750 as a way to help stabilize the housing market. The amount a
buyer can borrow varies from county to county. Later this summer, condo
buyers interested in FHA loans can visit www.checkfhaapproval.com to
instantly identify FHA-approved condo associations and review maximum
loan amounts for a given location.
4. FHA Loans Are Not Affiliated With The Section 8 Housing
Program. While both programs are administered by the U.S.
Department of Housing and Urban Development (HUD), FHA loans have
nothing to do with low-income subsidized housing. FHA loans are simply
mortgages insured by FHA. This insurance provided by the federal
government allows lenders to lend more freely by assuring them that they
will be repaid in the event of default. Most traditional lenders,
including Wells Fargo & Co., JP Morgan Chase and Citigroup are able
to provide FHA loans to their customers.
5. FHA Loans Are Often More Affordable Than Conventional
Loans. While FHA loans typically offer the same interest rates
as other loans, borrowers benefit from a much lower down payment of as
low as 3.5 percent.
6. FHA-Approved Condo Developments Are More Desirable To
Buyers. With 87 percent of home buyers indicating that they
plan to use FHA loans, condo associations that are not FHA approved are
missing out on a significant pool of prospective buyers. Under rules in
place since February 2010, an entire condominium development must now
apply to HUD and be granted FHA approval before a buyer can purchase a
unit in an association with an FHA loan or before an existing unit owner
can refinance into an FHA loan.
Due to the general unwillingness of today’s lenders to extend credit
with respect to conventional loans, many borrowers find that FHA is
their best bet. Lenders don’t mind lending when the federal government
(FHA) assures them of repayment.
Homeowners associations (HOAs) should note that although FHA-insured
mortgages might be easier to obtain, they are not “risky” loans, due in
large part to the strict “full documentation” requirements placed on
borrowers.
Individual buyers or sellers can initiate the approval process or
current owners can encourage their HOA to apply. More information about
the FHA- approval process is available at www.getfhaapproval.com.
7. FHA Loans Are Assumable. In addition to lower
down-payment and credit-qualifying requirements as compared to
conventional loans, FHA loans are assumable. This means that when a
seller with an FHA loan sells his or her property, the loan and its
financing terms (interest rate) can be transferred to the new buyer.
This unique feature will certainly make a property more valuable in
times of rising interest rates.
“Now, more than ever, buyers and sellers need to understand the options
available to them when it comes time to buy a home,” continued Gardner.
“At FHA Pros we have worked with countless HOAs, attorneys and
individuals to easily and efficiently navigate the historically tricky
FHA-approval process.”
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Additionally,
Congress passed an extension of the
closing deadline for the Home buyer Tax Credit, the Home buyer
Assistance
and Improvement Act (H.R. 5623). The extension applies only to
transactions that have ratified contracts in place as of April
30,
2010, that have not yet closed. The legislation is designed to
create a
seamless extension; the new closing deadline for eligible
transactions
is now September 30, 2010. There will be no gap between June 30
and the
date the President signs the bill into law. Extending the tax
credit
closing deadline will help provide additional stability to real
estate
markets across the nation.
Our Government
Affairs team worked closely with
Congressional leaders on both sides of the aisle to enact this
important legislation.
NAR is still
working on restoring the 502 single-family
rural housing loan guarantee program. Language is included in
H.R.
4899, the Emergency Supplemental Appropriations bill, that is
currently
in conference between the House and Senate. We expect the House
to pass that bill shortly and are hopeful the Senate will do the
same
when they return the week of July 12. When that bill passes, the
program will be restored through the end of the fiscal year.
For additional
information on the tax credit
extension, the flood insurance program and rural housing, please
visit www.realtor.org/government_affairs
We appreciate your
commitment and involvement on these
important REALTOR® Party issues and appreciate your continued
support.
Sincerely,
NAR Government
Affairs and Community & Political Affairs Divisions
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Here are 11 Reasons Why Buyers Might Not Want to Buy a Short Sale:
1) Sellers Paid Too Much.
If a home sold for $500,000 a few
years ago and is now for sale at $400,000, that doesn't mean the buyer is
picking up $100,000 of equity for
free. It means the seller paid too much in a rising market and now the market
has fallen. It means the seller has no equity.
2) Sellers Borrowed Too Much.
Banks that were eager to lend money
in appreciating markets sometimes allowed borrowers to over-mortgage the home,
meaning the borrower's loan balance exceeded the value of the property. Appraisals
are subjective, and not all appraisers will place the same value on a home.
Although against the law, some appraisers are pressured by banks to appraise at
the amount the home owner wants to borrow.
3) Stringent Qualifications.
Inexperienced or unethical real
estate agents might push a seller into considering a short sale when the seller
does not qualify
for a short sale. Sellers must prove a hardship and submit evidence of the
hardship to the lender for approval. Some agents list homes as short sales
without ever talking to the lenders or pre-qualifying the sellers.
4) Homes Sell at Market Value.
Lenders aren't naive or unaware of
the value of a home. Lenders will insist on a comparative
market analysis, known as a CMA, or broker price opinion, known as a BPO.
If a lender believes a better price can be obtained by taking the property back
in foreclosure
over a short-sale offer, the lender may hold out for a higher price. That price
will be close to market value.
Lenders accept short sales when the home is worth the short-sale price, which
means market value.
5) Homes Sell "As Is".
If a mortgage
company agrees to a short sale, it is most likely also paying the closing
costs in the transaction. Lenders ask buyers to purchase the home in its
present condition. Lenders typically will refuse to pay for:
6) Length of Time to Close.
Depending on when the Notice
of Default was filed, the lender's back-log of foreclosures and how much
paperwork the seller has already submitted, it could take anywhere from two
weeks to two months to get a response on a purchase
offer from a lender. In addition, if two lenders are involved because there
are two loans secured to the property, it could take longer to satisfy the
demands of the second lender.
7) Lenders Can Change Conditions.
Some lenders reserve the right to
renegotiate the terms of the short sale at the last minute. If the market
changes, new laws pass or new information crosses the lender's desk, the lender
can attempt to change the terms of the contract. Lenders generally have lawyers
at their disposal, and ordinary buyers do not.
8) Lenders Discount Commission.
Generally, only lenders who have
sold loans to Fannie Mae or Freddie Mac are paying traditional real
estate commissions to real estate agents. The rest may want a discount.
Moreover, agents end up doing two to three times the work of a conventional
transaction and don't appreciate getting paid less to do more work. If you have
agreed to pay your agent a certain percentage under a buyer
broker agreement, you could be liable for the difference between what the
lender will pay and what your contract stipulates, if your agent refuses to
waive the difference.
9) Higher Buyer Closing Costs.
Because lenders rarely will pay for
any extras, like a seller would be willing to do, if you want any of those
extras, you will pay for them yourself. Sometimes lenders will refuse to pay
for standard seller closing costs such as transfer taxes, too. If you want
specific inspections, you will probably pay for them out-of-pocket.
10) Lose Control of Transaction.
If you need to close escrow by a
specific date, lots of luck with that. A short sale home
closing process takes an indefinite amount of time. The seller's lender
calls the shots, not the buyer nor the buyer's lender. If you are trying to
close escrow concurrently with the sale of your home, it might not happen.
11) Little Seller Motivation.
When the seller discovers that the short
sale effect on credit is close to that of a foreclosure, there is little
incentive for a seller to cooperate with a short sale. Although sellers may
qualify to buy another home in 2 years after a short sale versus 5 (with
restrictions) on a foreclosure, some have no intention of ever buying another
home again.
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Wow...turned on my PC early this morning and to my delight I got
another lead on my website! As I started reading the note, I became
suspicious. But before I started looking up homes for this
"prospect" I did two very wise things. Read below...what would you
have done?
You are receiving this email because Mr. Ming Xing (hot prospect) has emailed you from your website.
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Dear Sir/Madam I am Mr. Ming Xing currently the Chief Financial Officer (CFO) Everglory Int'l Trading Co.,Ltd Website: http://www.everglory.com.cn/I
wil be relocating to us for Good with my family, after searching the
Internet for a reliable real estate agent I found your firm have
decided to choose your firm to buy my permanent home, please forward me
some property photos and link. and I would want to retain your lawyer
in all the process buying the property e.g. documentation and payment.
I need a 3 bed rooms/6 bed room's home with nice view and garage price
range $150,000.00USD - $1,200,000.00USD in nice neighborhood in your
city and state. Email is better than phone due to my accent and english. Regards Mr. Ming Xing Chief Financial Officer. Phone: 86 - 21 - 62330758 mingxing_everglorytrading@hotmail.com Broker: 205-258-1906
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First, I clicked on the website link. There was no such company or
website. Than I looked up "everglory trading". Guess what, these
scammers are not bright enough to change the name of the fake company.
Or maybe it is a company of crooks.
Well, I saved tons of time by taking one minute to check them out.
Sorry crooks, try your luck on someone more gullible. Make sure you
do not spin your wheels "working" with these and other similar
criminals. Looking For Homes In Roanoke Virginia Click: http://www.kjsellsroanoke.com/
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