Foreigners still caught in Sahara hostage crisis


ALGIERS/IN AMENAS, Algeria (Reuters) - More than 20 foreigners were still either being held hostage or missing inside a gas plant on Friday after Algerian forces stormed the desert complex to free hundreds of captives taken by Islamist militants.


More than a day after the Algerian army launched an assault to seize the remote desert compound, much was still unclear about the number and fate of the victims, leaving countries with citizens in harm's way struggling to find hard information.


Reports on the number of hostages killed ranged from 12 to 30, with anywhere from dozens to scores of foreigners still unaccounted for.


Norway's Prime Minister Jens Stoltenberg, eight of whose countrymen were missing, said fighters still controlled the gas treatment plant itself, while Algerian forces now held the nearby residential compound that housed hundreds of workers.


Leaders of Britain, Japan and other countries expressed frustration that the assault had been ordered without consultation. Many countries were also withholding information about their citizens to avoid helping the captors.


Night fell quietly on the village of In Amenas, the nearest settlement, some 50 km (30 miles) from the vast and remote desert plant. A military helicopter could be seen in the sky.


An Algerian security source said 30 hostages, including at least seven Westerners, had been killed during Thursday's assault, along with at least 18 of their captors. Eight of the dead hostages were Algerian, with the nationalities of the rest of the dead still unclear, he said.


Algeria's state news agency APS put the total number of dead hostages at 12, including both foreigners and locals.


Norway's Stoltenberg said some of those killed in vehicles blasted by the army could not be identified. "We must be prepared for bad news this weekend but we still have hope."


Northern Irish engineer Stephen McFaul, who survived, said he saw four trucks full of hostages blown up by Algerian troops.


The attack has plunged international capitals into crisis mode and is a serious escalation of unrest in northwestern Africa, where French forces have been in Mali since last week fighting an Islamist takeover of Timbuktu and other towns.


"We are still dealing with a fluid and dangerous situation where a part of the terrorist threat has been eliminated in one part of the site, but there still remains a threat in another part," British Prime Minister David Cameron told his parliament.


A local Algerian source said 100 of 132 foreign hostages had been freed from the facility. However, other estimates of the number of unaccounted-for foreigners were higher. Earlier the same source said 60 were still missing. Some may be held hostage; others may still be hiding in the sprawling compound.


Two Japanese, two Britons and a French national were among the seven foreigners confirmed dead in the army's storming, the Algerian security source told Reuters. One British citizen was killed when the gunmen seized the hostages on Wednesday.


Those still unaccounted for on Friday included 10 from Japan and eight Norwegians, according to their employers, and a number of Britons which Cameron put at "significantly" less than 30


France said it had no information on two Frenchmen who may have been at the site and Washington has said a number of Americans were among the hostages, without giving details. The local source said a U.S. aircraft landed nearby on Friday.


The attackers had initially claimed to be holding 41 Western hostages. Some Westerners were able to evade capture by hiding.


They lived among hundreds of Algerian employees on the compound. The state news agency said the army had rescued 650 hostages in total, 573 of whom were Algerians.


"(The army) is still trying to achieve a ‘peaceful outcome' before neutralizing the terrorist group that is holed up in the (facility) and freeing a group of hostages that is still being held," it said, quoting a security source.


MULTINATIONAL INSURGENCY


Algerian commanders said they moved in on Thursday about 30 hours after the siege began, because the gunmen had demanded to be allowed to take their captives abroad.


A French hostage employed by a French catering company said he had hidden in his room for 40 hours under the bed, relying on Algerian employees to smuggle him food with a password.


"I put boards up pretty much all round," Alexandre Berceaux told Europe 1 radio. "I didn't know how long I was going to stay there ... I was afraid. I could see myself already ending up in a pine box."


The captors said their attack was a response to a French military offensive in neighboring Mali. However, some U.S. and European officials say the elaborate raid probably required too much planning to have been organized from scratch in the single week since France first launched its strikes.


Paris says the incident proves that its decision to fight Islamists in neighboring Mali was necessary.


Security in the half-dozen countries around the Sahara desert has long been a pre-occupation of the West. Smugglers and militants have earned millions in ransom from kidnappings.


The most powerful Islamist groups in the Sahara were severely weakened by Algeria's secularist military in a civil war in the 1990s. But in the past two years the regional wing of Al Qaeda gained fighters and arms as a result of the civil war in Libya, when arsenals were looted from Muammar Gaddafi's army.


Al Qaeda-linked fighters, many with roots in Algeria and Libya, took control of northern Mali last year, prompting the French intervention in that poor African former colony.


The Algerian security source said only two of 11 militants whose bodies were found on Thursday were Algerian, including the squad's leader. The others comprised three Egyptians, two Tunisians, two Libyans, a Malian and a Frenchman, he said.


The plant was heavily fortified, with security, controlled access and an army camp with hundreds of armed personnel between the accommodation and processing plant, Andy Coward Honeywell, who worked there in 2009, told the BBC.


The apparent ease with which the fighters swooped in from the dunes to take control of an important energy facility, which produces some 10 percent of the natural gas on which Algeria depends for its export income, has raised questions over the value of outwardly tough security measures.


Algerian officials said the attackers may have had inside help from among the hundreds of Algerians employed at the site. The attackers benefitted from bases and staging grounds across the nearby border in Libya's desert, Algerian officials said.


U.S. Defense Secretary Leon Panetta said those responsible would be hunted down: "Terrorists should be on notice that they will find no sanctuary, no refuge, not in Algeria, not in North Africa, not anywhere.... Those who would wantonly attack our country and our people will have no place to hide."


WARNING OF MORE ATTACKS


The kidnappers threatened more attacks and warned Algerians to stay away from foreign companies' installations, according to Mauritania's news agency ANI, which maintained contact with the group during the siege.


Hundreds of workers from international oil companies were evacuated from Algeria on Thursday and many more will follow, said BP, which jointly ran the gas plant with Norway's Statoil and the Algerian state oil firm.


The overall commander of the kidnappers, Algerian officials said, was Mokhtar Belmokhtar, a one-eyed veteran of Afghanistan in the 1980s and Algeria's bloody civil war of the 1990s. He appears not to have been present.


Algerian security specialist Anis Rahmani, author of several books on terrorism and editor of Ennahar daily, told Reuters about 70 militants were involved from two groups, Belmokhtar's "Those who sign in blood", who traveled from Libya, and the lesser known "Movement of the Islamic Youth in the South".


Britain's Cameron, who warned people to prepare for bad news and who canceled a major policy speech on Friday to deal with the situation, said he would have liked Algeria to have consulted before the raid. Japan made similar complaints.


U.S. officials had no clear information on the fate of Americans. Washington, like its European allies, has endorsed France's military intervention in Mali.


(Additional reporting by Ali Abdelatti in Cairo, Eamonn Mallie in Belfast, Gwladys Fouche in Oslo, Mohammed Abbas in London and Padraic Halpin and Conor Humprhies in Dublin; Writing by Philippa Fletcher and Peter Graff; Editing by Andrew Roche)



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US stocks mostly higher; Intel pulls Nasdaq down






NEW YORK: US stocks ended mostly higher on Friday helped by news that Republicans might give way to a short-term rise of the debt ceiling to avoid a new crisis, but poor earnings from Intel pulled the Nasdaq lower.

The Dow Jones Industrial Average was up 53.68 points (0.39 percent) to 13,649.70.

The broad-based S&P 500 added 5.04 points (0.34 percent) at 1,485.98.

But the tech-heavy Nasdaq Composite ended down 1.29 points (0.04 percent) at 3,134.71, dragged lower by chipmaker Intel, which sank 6.3 percent after a poor fourth quarter, with a 31 percent drop in profit and a lowered forecast for this year.

- AFP/de



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Virgin kicks off Galaxy S2 4G promo with Lady Gaga tour





A Virgin rep (signified by the branded coat) stands next to a pseudo giant Galaxy S2 4G projecting fan photos from the Lady Gaga concert.



(Credit:
Lynn La/CNET)


While it's true that Lady Gaga wants your "bad romance," the prepaid carrier, Virgin Mobile, really wants you to check out its Galaxy S2 4G instead.


That's why it has teamed up Samsung to promote the device while sponsoring Mother Monster herself as she goes on tour across the U.S.



Hitting the Pacific Northwest first with stops in Washington and Oregon, the tour made its way to the Bay Area last night in San Jose, CA.


Two Virgin Mobile kiosks or "activation sites" were set up so fans could take photos of themselves, many of which were dressed in homemade Gaga garb.


Those who were there that night and tagged their Instagram photos with the hashtag #BreakFree could also scoop up photo prints at the sites as well.


In addition, Virgin "Angels," identified with branded jackets and red, bedazzeld shoulder pads, roamed the crowd to demo the handset and take photos of concert goers.


The promotion culminated near the end of the night, when Lady Gaga used a Galaxy S2 4G handset onstage to call one randomly chosen fan at the HP Pavillion. While on the phone, Gaga informed the fan, a 42 year-old-mother of two, that a $5,000 donation will be made on her behalf to a local charity in San Jose. She also added that come the end of the concert, they can both share a bottle of whiskey together.



Samsung's Galaxy S II on Boost Mobile still stacks up well




Virgin has been carrying the device since last November, and since that time, has been steadily decreasing its price. In addition to its Black Friday promotion, the phone is currently $50 cheaper due to the "Born This Way" deal, and now costs $279.99.


The 4G smartphone also has a 4.52-inch touchscreen, a dual-core processor, and runs on
Android 4.0 Ice Cream Sandwich. Though we haven't taken a look at the unit on Virgin's network, you can read more about the handset from our Boost Mobile review.


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American Airlines introduces new logo

NEW YORK American Airlines is getting a new look.

The airline showed off the first plane bearing a new logo and paint job at Dallas--Fort Worth International Airport on Thursday.


American Airlines releases new logo

American's new look


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American Airlines/AP

The familiar red, white and blue stripes along the side of the fuselage are gone, replaced by a new logo and "American" in large letters on the silver body. Red and blue horizontal bars are emblazoned on the tail.

"We thought it was time to update the look - it's been 40 years," Thomas Horton, CEO of American's parent, AMR Corp., said in an interview.

The new livery was painted on a Boeing (BA) 777-300 that was flown into Fort Worth, Texas, overnight and was to be shown to the public later Thursday. The plane goes into service Jan. 31.

American expects about one-third of its fleet, or roughly 200 planes, will sport the new look by the end of the year with the rest to be repainted within five years. The makeover will extend to airport signs, self-help kiosks and American's website.

American declined to say how much the "rebranding" campaign will cost.

Horton said planning for the redesign began in the summer of 2011, when American announced it would buy hundreds of new planes from Boeing and Airbus, many of which will be made of composite material that can't easily be painted in American's traditional polished-aluminum look.

That means American was thinking of a makeover even before it filed for bankruptcy protection in November 2011. Horton said bankruptcy creditors were kept informed about the redesign. The desire to cut costs didn't derail the effort.

"We're very much coming to the end of the restructuring, and really all the cost-reduction initiatives have been bolted down," Horton said. "We really are at that moment now to turn the page and set the course for a new American."



American Airlines unveils a new company logo and exterior paint scheme on a Boeing 737-800 aircraft on January 17, 2013 in Dallas, Texas. The exterior changes are the first for the company since 1968 and were announced as the parent company of American Airlines, AMR, is considering a merger with US Airways.


/

Tom Pennington

Under pressure from creditors, AMR is studying whether to embrace a merger with US Airways (LCC) or remain on its own. A decision is expected soon, and Horton said the redesign doesn't tilt the company toward either outcome.

Horton said AMR did not tell US Airways in advance about the new livery - "That wouldn't have been appropriate; they're a competitor" - but he gave US Airways Group Inc. CEO Doug Parker a courtesy heads-up on Wednesday night.

US Airways praised the "compelling result" of the redesign, as spokesman Ed Stewart put it.

The pilots' union at American, which has long fought with AMR and wants company management replaced, was less enthusiastic.

"A new paint job is fine but it does not fix American's network deficiencies and toxic culture," said Dennis Tajer, a spokesman for the Allied Pilots Association. His and other unions at American support a merger that would put US Airways executives in charge of the combined airline.

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'Catfish' Star Reaches Out to Manti Te'o













Nev Schulman, the star and creator of the MTV show "Catfish" that follows Internet dating hoaxes, has reached out to Notre Dame football star Manti Te'o and offered to help solve his girlfriend hoax.


Te'o and Notre Dame claim he was a "catfish" victim when it was revealed that the woman he said was his girlfriend and died of leukemia never existed.


The "Catfish" television show was spawned by a movie of the same name in which Schulman tracked down a person who pretended to be a young woman he had met online.


".@MTeo_5 I know how you feel. It happened 2 me. I want 2 help tell ur story & prevent this from happening to others in the future. Lets talk," Schulman tweeted to Te'o.


Schulman says in his tweets that he has information about the baffling hoax. "I am working on finding out more about this @MTeo_5 #Catfish story. I have been in contact with the woman involved and will get the truth," Schulman tweeted on Wednesday night. It is unclear which woman Schulman has been in contact with.


However, in a statement released to ABC News, Schulman said "I have been in touch with Donna Tei. She reached out to me back in December asking for help regarding the person who had been using her photos to create a fake profile."






ABC News; David J. Phillip/AP Photo











Manti Te'o Hoax: Notre Dame Star Allegedly Scammed Watch Video









'Catfish' Star Nev Schulman's Red Flags for Spotting Online Fakers Watch Video









Tale of Notre Dame Football Star's Girlfriend and Her Death an Alleged Hoax Watch Video





It's not clear whether Donna Tei was the woman whose photo was used as "girlfriend" Lennay Kekua or another person in the complicated hoax.


He also tweeted, "However his #Manti story ends, it doesn't change that we are all the victims of a #Catfish."


In an interview with ABC News, Schulman defended the possibility that Te'o had been duped.


"From what I gather, and from some contact that has been made with me with people who have been involved in this story directly, I get the impression that this is a much larger scheme than he would have thought," Schulman said.


"It doesn't seem to me that he is in on it, although, of course, that is yet to be seen. Even though it seems hard to believe because he is a high-profile football player, he is just as vulnerable and susceptible to being Catfished as anyone else."


"I think there is a lot more we are going to find out about this story," he said.


Notre Dame Athletic Director Jack Swarbrick cited the documentary "Catfish" in trying to explain how the star linebacker became a hoax victim.


"I would refer all of you, if you're not already familiar with it, with both the documentary called 'Catfish,' the MTV show which is a derivative of that documentary, and the sort of associated things you'll find online and otherwise about catfish, or catfishing," Swarbrick told reporters Wednesday.


The 2010 film stars Schulman, who was the real-life victim of a "catfish" scam. Schulman wanted to make the documentary to show how he was sucked in by an Internet pretender -- or a "catfish" -- who built an elaborate fake life.


Schulman made the documentary as he was falling for someone named "Megan," a gorgeous 20-something from Michigan. Their online relationship blossomed until Schulman confronted "Megan."


"Megan" turned out to be a middle-aged mom of two named Angela Wesselman, who later said she had been diagnosed with schizophrenia.


Inside 'Catfish': A Tale of Twisted Cyber-Romance


"It was different. It was something new. It was a little mysterious," Schulman told ABC News in an earlier interview, describing his reaction before he discovered Megan's true identity.






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Some foreign hostages said killed in Algeria assault


ALGIERS (Reuters) - Algeria said several hostages were killed on Thursday when its forces stormed a remote desert gas plant occupied by Islamist militants in retaliation for French intervention in Mali, and local sources said six foreigners were among the dead.


Amid reports of many more casualties in one of the biggest international hostage crises in decades, Western leaders expressed anger they had not been consulted before the operation and scrambled for word of their citizens. Some eight hours after the army assault began, Algerian state media said it was over.


Americans, Britons, Norwegians, French, Romanians and an Austrian, were among those taken, their countries said.


Algeria said its troops had been forced to act to free them due to the "diehard" attitude of their captors.


"When the terrorist group insisted on leaving the facility, taking the foreign hostages with them to neighboring states, the order was issued to special units to attack the position where the terrorists were entrenched," the government spokesman, Communication Minister, Mohamed Said told the state news agency.


The standoff began when gunmen calling themselves the Battalion of Blood stormed the natural gas facility early on Wednesday morning. They said they were holding 41 foreigners and demanded a halt to a French military operation against fellow al Qaeda-linked Islamist militants in neighboring Mali.


Said said the military operation, which Western officials were told had begun around noon (6:00 a.m. EST) on Thursday, resulted in "the liberation of a large number of hostages and the destruction of a large number of terrorists".


The raid increased fears jihadist militants could launch further attacks in Algeria, a vast desert country with large oil and gas reserves that is only just recovering from a protracted conflict with Islamist rebels during the 1990s which cost an estimated 200,000 lives.


A local source told Reuters six foreign hostages were killed along with eight captors when the Algerian military fired on a vehicle being used by the gunmen.


He said 40 Algerians and three foreigners were freed by the army as it continued its operation into Thursday evening. An Algerian security source said earlier that 25 foreign hostages had escaped.


Algeria's official APS news agency said about half the foreign hostages had been freed and about 600 Algerian workers at the site, under less tight guard, had managed to escape.




MILITANTS KNEW THEIR WAY AROUND


In a rare eyewitness account of Wednesday's raid, a local man who had escaped from the facility told Reuters the militants appeared to have good inside knowledge of the layout of the complex and used the language of radical Islam.


"The terrorists told us at the very start that they would not hurt Muslims but were only interested in the Christians and infidels," Abdelkader, 53, said by telephone from his home in the nearby town of In Amenas. "We will kill them, they said."


Mauritanian agency ANI and Qatar-based Al Jazeera said that 34 of the captives and 15 of their captors had been killed when government forces fired from helicopters at a vehicle.


Those death tolls, far higher than confirmed by the local source, would contradict the reports that large numbers of foreigners escaped alive. On Thursday evening, ANI said it had lost its previously regular contact with the kidnappers.


Britain and Norway, whose oil firms BP and Statoil run the plant jointly with the Algerian state oil company, said they had been informed by the Algerian authorities that a military operation was under way.


British Prime Minister David Cameron said people should prepare for bad news about the hostages. He earlier called his Algerian counterpart to express his concern at what he called a "very grave and serious" situation, Cameron's spokesman said.


"The Algerians are aware that we would have preferred to have been consulted in advance," the spokesman added.


Norwegian Prime Minister Jens Stoltenberg said he had been told by his Algerian counterpart the action had started at around noon. He said they had tried to find a solution through the night, but that it had not worked.


"The Algerian prime minister said they felt they had no choice but to go in now," he said.


RAISING THE STAKES


The incident dramatically raises the stakes in the French military campaign in neighboring Mali, where hundreds of French paratroopers and marines are launching a ground offensive against Islamist rebels after air strikes began last week.


"What is happening in Algeria justifies all the more the decision I made in the name of France to intervene in Mali in line with the U.N. charter," French President Francois Hollande said, adding that things seemed to have taken a "dramatic" turn and he was still seeking details.


He said earlier that an unspecified number of French nationals were among the hostages. A French national was also among the hostage takers, a local source told Reuters. A large number of people from the former French colony live in France.


Algerian Interior Minister Daho Ould Kablia said the kidnappers were led by Mokhtar Belmokhtar, a veteran Islamist guerrilla who fought in Afghanistan and set up his own group in the Sahara after falling out with other local al Qaeda leaders.


A holy warrior-cum-smuggler dubbed "The Uncatchable" by French intelligence and "Mister Marlboro" by some locals for his illicit cigarette-running business, Belmokhtar's links to those who seized towns across northern Mali last year are unclear.


A local source told Reuters the hostage takers had blown up a petrol filling station at the plant.


NUMBERS UNCONFIRMED


The precise number and nationalities of foreign hostages could not be confirmed, with some countries reluctant to release information that could be useful to the captors.


Britain said one of its citizens was killed in the initial storming on Wednesday and "a number" of others were held.


The militants had said seven Americans were among their hostages. The White House said it believed Americans were among those held but U.S. officials could not confirm the number. "This is an ongoing situation and we are seeking clarity," White House spokesman Jay Carney told reporters, expressing concern about the reported loss of lives.


Statoil said it had no word on nine of its Norwegian staff who had been held but that three Algerian employees were now free. BP said some of its staff were held but would not say how many or their nationalities.


Japanese media said five workers from Japanese engineering firm JGC Corp. were held, a number the company did not confirm. Vienna said one hostage was Austrian, Dublin said one Irish hostage had been freed and Bucharest said an unspecified number of those held were Romanian.


BP, Statoil and Spanish oil company Cepsa all said they had begun to evacuate personnel from elsewhere in Algeria, an OPEC member.


Hollande has received public backing from Western and African allies who fear that al Qaeda, flush with men and arms from the defeated forces of Libya's Muammar Gaddafi, is building a desert haven in Mali, a poor country helpless to combat fighters who seized its northern oasis towns last year.


However, there is also some concern in Washington and other capitals that the French action in Mali could provoke a backlash worse than the initial threat by militants in the remote Sahara.


The militants, communicating through established contacts with media in neighboring Mauritania, said on Wednesday they had dozens of men armed with mortars and anti-aircraft missiles in the compound and had rigged it with explosives.


They condemned Algeria's secularist government for letting French warplanes fly over its territory to Mali and shutting its border to Malian refugees.


The attack in Algeria did not stop France from pressing on with its campaign in Mali. It said on Thursday it now had 1,400 troops on the ground in Mali, and combat was under way against the rebels that it first began targeting from the air last week.


The French action last week came as a surprise but received widespread international support in public. Neighboring African countries planning to provide ground troops for a U.N. force by September have said they will move faster to deploy them.


Nigeria, the strongest regional power, sent 162 soldiers on Thursday, the first of an anticipated 906.


A day after launching the campaign in Mali, Hollande also ordered a failed rescue in Somalia on Saturday to free a French hostage held by al Qaeda-linked al Shabaab militants since 2009. Al Shabaab said on Thursday it had executed hostage Denis Allex. France said it believed he died in the rescue.


(Additional reporting by Ali Abdelatti in Cairo, Gwladys Fouche in Oslo, Mohammed Abbas in London and Padraic Halpin in Writing by Peter Graff, Giles Elgood and Philippa Fletcher; Editing by Alastair Macdonald)



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Amazon says music catalogue open to Apple users






SAN FRANCISCO: Amazon said Thursday its 22-million song music catalogue was now "optimised" for users of Apple devices, making it easier for iPhone owners to circumvent the iTunes store.

The move is part of a new initiative by the Internet retail giant challenging Apple's dominance of the digital music market.

"For the first time ever, iPhone and iPod touch users can discover and buy digital music from Amazon's 22-million song catalogue using the Safari browser," Amazon said in a statement.

"Music purchases are automatically saved to customers' Cloud Player libraries and can be downloaded or played instantly from any iPhone, iPod touch, iPad, Kindle Fire, Android phone or tablet, Roku, Sonos home entertainment system, or any Web browser, giving customers the freedom to enjoy more music, from more devices than any other major cloud music service."

The move comes a week after Amazon launched a service that gives compact disc buyers instant copies of music in the Internet "cloud" in a challenge to iTunes.

Amazon AutoRip provides free MP3 versions of music on CDs bought from the online retail titan.

In the newest announcement, Amazon said its MP3 mobile website for iPhone and iPod touches is built on HTML5, which means customers can make purchases directly from the website.

Amazon offers some deals, including US$5 albums, 69-cent songs, and free songs from artists on the rise.

According to research firm NPD, iTunes last year held a 64 per cent share of the digital music market and 29 per cent share of all music sold at retail. Amazon had 16 per cent of the digital market, according to NPD's September survey.

- AFP/jc



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Sprint's Samsung Galaxy Nexus gets Android 4.2 update



The Galaxy Nexus may be more than a year old, but this Android 4.2 update keeps it current.



(Credit:
CBS Interactive)


The Sprint version of the Samsung Galaxy Nexus has begun receiving the Android 4.2 software update, according to various reports surfacing this week.


The 98MB file can be manually downloaded and installed; however, the carrier has yet to make any formal announcements.


CNET has reached out to Sprint for comment and will update the article with any response.


Sprint may have been months behind Verizon releasing the
Galaxy Nexus, but the smaller carrier has been much more active in offering updates. The Verizon model, for its part, is still running Jelly Bean 4.1.1.


While this isn't the worst situation to be in, it does add fuel to the fragmentation fire. Both devices are considered a "Pure Google" experience, which means they should be first in live to receive an OS update. However, Sprint's phone is now four small version updates ahead of Verizon's model.


Since Google is hosting the 4.2 software file being directly on its servers (.zip file,) it is only a matter of time before Sprint pushes the update itself.


Those who like to take things into their own hands can flash the ROM on their phone today, though I suspect the over-the-air version is right around the corner.


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13 home buying tips for 2013

(MoneyWatch) Although housing prices started to rebound last year and are expected to continue rising in 2013, it's still a buyer's market. Prices remain 30 percent below their peak before the housing crash and mortgage rates hovering at all-time lows. If you are ready to jump in to the real estate market, here are 13 house-hunting tips for 2013.

1. Run the numbers. Put together a financial plan to determine whether you can really afford to buy. After all, just because it's a good time to purchase a home doesn't mean it's a good time for YOU to buy. It's important to understand how much home you can afford and whether home ownership might preclude you from addressing other important financial issues in your life.

2. Save 20 percent for a down payment. I'm not a huge fan of putting down less than that amount (although the Federal Housing Administration allows it). Keep your downpayment fund in cash or cash equivalent accounts, so that market movements don't thwart your plans.

3. Use this great "rent vs. buy" calculator from the New York Times. Renting might still be the better deal in your area.

4. Be an informed buyer. You're not going to buy a house simply because there's a pretty photo posted online, but you can conduct a lot of price research. That said, there's nothing better than talking to people in the neighborhood for "on the ground" intelligence.

5. Obtain a copy of your credit report. If you haven't done so in a while, go to AnnualCreditReport.com and request your free copy. It's important that you correct any errors on the report before you start the mortgage process.

6. Get pre-approved for a mortgage. Pre-approval is a good gut check on your price range for a home. Gone are the days that banks will fork over cash to anyone with a heartbeat. The best way to start is to ask friends for referrals from mortgage brokers and to shop around with banks and credit unions. Make sure to compare apples to apples and to ask the broker about your total costs to you at closing. You should also know that once you actually find a home, the mortgage process is on the same pain level as a root canal, only it requires more patience and there's no Novocain. You'll need to dig up tons of paperwork and fair warning -- there will be multiple requests for even more documents as you move toward closing. Eventually, you will need "commitment letter," which details the terms of your loan approval.

7. Find an agent. As much as everyone complains about realtors, I still think that it's tough to go through the home buying process alone. In some markets, buyers' brokers are available, but the most important qualities in brokers are honesty, experience, good connections with other agents, and good referrals from buyers like you. Remember that most agents represent the seller, not the buyer.

8. Hire a real estate attorney. This is a major transaction in your life, so don't try to save money when it comes to legal fees. Even if your mortgage company provides a lawyer, hire your own to help draft all documents and to ensure that your interests are being represented at every step of the process.

9. Get an appraisal. An appraisal will determine the market value of the property and ultimately will be used by your lender to determine the amount of your loan. You have a legal right to get a copy of this and will want a copy for your records.

10. Schedule a home inspection. Think you've found your dream house? Maybe, but unless you have an engineer walk through the premises with you, you might be buying a new roof in a couple of years. Don't get freaked out if a problem arises during the inspection; it can often be addressed with a simple adjustment in price. It's imperative to protect yourself, so don't blow off this important step.

11. Start with a fair offer. The offer should be based on similar houses sold in the neighborhood in the past six months. Your agent will help you with the process, but the offer should include the price you're willing to pay for the house, your financing terms and contingencies such as specifying what will happen if any problems come up during the inspection.

12. Purchase homeowners insurance. If you are a life-long renter, this can be an eye-opener in terms of cost. Make sure that you understand the difference between insuring the structure and insuring the contents. And if you are buying property that is close to water, make sure that you have an agent who can help you enroll in the national flood insurance program.

13. Review your HUD statement BEFORE closing. The government document provides basic details about the involved parties and a lot of numbers. Mistakes do occur, which is why it is vital that you review the statement and confirm that everything is correct.

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Obama Unveils Sweeping Plan to Curb Gun Violence













Flanked by four children from across the country, President Obama today unveiled a sweeping plan to curb gun violence in America through an extensive package of legislation and executive actions not seen since the 1960s.


Obama is asking Congress to implement mandatory background checks for all gun purchases, including private sales; reinstate a ban on some assault-style weapons; ban high-capacity magazines holding more than 10 rounds; and crackdown on illicit weapons trafficking.


The president's proposal also includes new initiatives for school safety, including a call for more federal aid to states for hiring so-called school resource officers (police), counselors and psychologists, and improved access to mental health care.


Obama also initiated 23 executive actions on gun violence, policy directives not needing congressional approval. Among them is a directive to federal agencies to beef up the national criminal background-check system and a memorandum lifting a freeze on gun violence research at the Centers for Disease Control and Prevention.


"I intend to use whatever weight this office holds to make them a reality," Obama said at a midday news conference. "If there's even one thing that we can do to reduce this violence, if there's even one life that can be saved, then we have an obligation to try.


"And I'm going to do my part."


The announcement comes one month after a mass shooting at Sandy Hook Elementary School in Newtown, Conn., left 26 dead, including 20 children. Obama called it the worst moment of his presidency and promised "meaningful action" in response.






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The proposals were the work of an Obama-appointed task force, led by Vice President Joe Biden, that held 22 meetings on gun violence in the past three weeks. The group received input from more than 220 organizations and dozens of elected officials, a senior administration official said.


As part of the push, Obama nominated a new director for the Bureau of Alcohol, Tobacco and Firearms, which leads enforcement of federal gun laws and has been without a confirmed director for six years. The president appointed acting director Todd Jones, the U.S. attorney for Minnesota, to the post, if the Senate confirms him.


The administration's plan calls for aid to states for the hiring of more school resource officers, counselors and psychologists. Obama also directed the Department of Education to ensure all schools have improved emergency-response plans.


He also called on Congress to make it illegal to possess or transfer armor-piercing bullets; it's now only illegal to produce them.


"To make a real and lasting difference, Congress must act," Obama said. "And Congress must act soon."


Officials said some of the legislative measures Obama outlined could be introduced on Capitol Hill next week. The pricetag for Obama's entire package is $500 million, the White House said.


"House committees of jurisdiction will review these recommendations," a spokesman for House Speaker John Boehner said in response to Obama's announcement. "And if the Senate passes a bill, we will also take a look at that."


The proposals are already being met with stiff opposition from gun rights advocates, led by the National Rifle Association, which overnight released a scathing ad attacking the president as an "elitist hypocrite."


"Are the president's kids more important than yours?" the narrator of the NRA ad says. "Then why is he skeptical about putting armed security in our schools, when his kids are protected by armed guards at their school?"


Obama has questioned the value of placing more armed guards at schools around the country, although his proposal does call for placement of more police officers at public schools. The NRA opposes most of the other gun restrictions Obama has proposed.


"Keeping our children and society safe remains our top priority," the NRA said in a statement after Obama's announcement.


"Attacking firearms and ignoring children is not a solution to the crisis we face as a nation," the group said. "Only honest, law-abiding gun owners will be affected and our children will remain vulnerable to the inevitability of more tragedy."






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