St Louis Real Estate NewsDaily St. Louis real estate news, market analysis, home prices, and mortgage rate updates from local industry professionals. |
Dennis Norman
The Financial Crimes Enforcement Network (FinCen), a bureau of the U.S. Department of the Treasury, released their 2009 Mortgage Loan Fraud (MLF) study which found the number of mortgage fraud suspicious activity reports (SAR’s) filed in 2009 grew 4 percent compared to 2008.
Dennis Norman
Next month St. Louis County and St. Charles County will hold their annual collector’s real property tax sale. The City of St. Louis holds their property tax sale on five separate dates beginning in May and running through October.
The general perception among many people is that at these sales property is sold for back-taxes owed, which is not entirely accurate. Under tax sales the property owner may in fact lose ownership of their property to the purchaser at the tax sale but, in St. Charles and St. Louis County, not until after a “redemption” period Continue Reading →
Dennis Norman
07/17/10-Correction – This past week Congress passed H.R. 4173, the Wall Street Reform and Consumer Protection Act which is the most comprehensive reform to the banking industry since the Great Depression. The bill now awaits President Obamas signature which is expected to happen in the coming week.
This is a very comprehensive bill and I’m not sure even the Congressmen that passed it know everything that is in it, so I’m certainly not going to even pretend to know that much about the bill, but the one thing I do know is the Home Valuation Code Continue Reading →
Dennis Norman
UPDATE -July 2 – The President has signed the bill into law….It’s official, the deadline is September 30th to close..
UPDATE-July 1- GOOD NEWS! I Stand Corrected! Yesterday, before ending session, the Senate did PASS H.R. 5623 by Unanimous Consent…the bill now goes to the President for his signature and then will extend the closing date until September 30th…
UPDATE-June 30th-Today was the last day the Senate is in session before the 4th of July break and there was no action on this bill…..The Senate is now on recess until July 12th so nothing Continue Reading →
Dennis Norman
UPDATE June 21, 2010- I said I would update this post after the proposed rules were published on the Federal Register with info on how to submit a comment -If you would like to comment, see the comment instructions in the Federal Register (I highlighted them) by clicking here -end of update.
June 4, 2010 Are they really going to repeat the same mistakes that helped cause this housing recession?
I say this because of a release I received from the Federal Housing Finance Agency (FHFA) last week announcing that the FHFA “has sent to the Continue Reading →
Dennis Norman
According to a press release issued by the FBI, nearly 500 people have been arrested in a nationwide mortgage fraud take-down as part of “Operation Stolen Dreams.” This operation was launched on March 1, 2010 and, according to the FBI, has lead to a total of 485 arrests, 330 convictions and the recovery of nearly $11 million. The FBI estimates that losses from a variety of fraud schemes are estimated to exceed $2 billion.
Operation Stolen Dreams is the government’s largest mortgage fraud take-down to date. But FBI Director Robert S. Mueller cautioned that there is Continue Reading →
UPDATE-July 1- GOOD NEWS! I Stand Corrected! Yesterday, before ending session, the Senate did PASS H.R. 5623 by Unanimous Consent…the bill now goes to the President for his signature and then will extend the closing date until September 30th…
Dennis Norman
UPDATE-June 30th-As the Willie Nelson song goes. “Turn out the lights, the party’s over”….well at least for now…Today, the last day the Senate is in session before the 4th of July break, there was yet another motion for cloture (to end debate) on H.R. 4213 and once again, like the previous 2 or 3 attempts, Continue Reading →
Dennis Norman
The deadline to purchase a home to qualify for the extended home-buyer tax credit was April 30th with a deadline of June 30, 2010 to close the sale. Since the deadline to purchase I have heard from many buyers with questions and concerns as they realize that, while they made the April 30th deadline to enter enter a contract to purchase a home, they are concerned that they may not make the June 30th deadline for closing, particularly those buying a new home, and want to know if there were any options available to them to Continue Reading →
Dennis Norman
Yesterday the U.S. House of Representatives passed H.R. 5072, the FHA Reform Act of 2010 which is good news for home-buyers that may need to rely upon an FHA loan for a home purchase. The bill will still need to be passed by the Senate and then signed into law by the President, but a big first step toward this was taken by the House passing it.
Highlights of the bill that I think are important to home-buyers are:
The down-payment requirement for FHA loans will remain at 3.5 percent. There was an amendment to the Continue Reading →
UPDATE- June 2, 2010: The National Association of REALTORS obtained answers from the Treasury Department on 3 common questions about HAFA:
agents are not permitted to rebate a portion of their commission to the buyer, sellers who are real estate agents must list their home for sale with another broker, not their own broker, and the incentive allowed for subordinate lien holders (6% of any one subordinate lien, up to a total of $6,000 for all subordinate liens) is a hard cap and may not be supplemented from any source.
Dennis Norman
In March I did an update on Continue Reading →
Dennis Norman
Talk about the housing market not being able to catch a break….it seems every time something positive happens to give us a little encouragement, something else pops up to give the market another black eye. Here we are less than a month after the home-buyer tax credit deadline has passed and we are seeing reports of home prices dropping again as well as the volume of sales, and now, the National Flood Insurance Program (NFIP) is set to expire on May 31st. Of course Congress could extend the program prior to the expiration, but the word Continue Reading →
Dennis Norman
Earlier this month I did a post about important legislation in Missouri, specifically HB 2058, which would make badly needed changes to the Missouri Mechanic’s Lien Statute, because if it didn’t pass purchasers of new homes would face hurdles obtaining long-term fixed-rate mortgages as title companies have threatened to stop providing mechanic’s lien coverage.
On May 17th I was happy to update the post with the news that the bill had passed the House and Senate and was just awaiting the signature of Governor Nixon to become effective.
Herein the problem lies…
Word is Governor Nixon Continue Reading →
A 10-count indictment has been unsealed charging six individuals with conspiracy to commit wire fraud and wire fraud, announced U.S. Attorney Karen P. Hewitt. The defendants are charged with submitting false and fraudulent mortgage loan applications and related documents to banks and other lending institutions, thereby inducing the institutions to make approximately 36 loans totaling approximately $20,800,000.
The defendants charged with participating in the conspiracy are: Brian Andrew La Porte; Daniel John Schuetz; Michael Wayne Wickware; Roxanne Yvette Hempstead; Darryl Anthony Wallace, aka Darryl Anthony White; and Terrence Smith, aka Terry Lee Smith. The indictment alleges that the defendants devised Continue Reading →
The founder and head of Chicago Development and Planning was sentenced yesterday to 15 years and eight months in prison, and ordered to pay more than $9 million in restitution for wire fraud, mail fraud, and money laundering, U.S. Attorney Joseph P. Russoniello announced.
Patricia Morgen pleaded guilty on Dec. 16, 2009. According to the plea agreement, she admitted creating a scheme to solicit investors for a company called Chicago Development and Planning, with the promise of substantial guaranteed return profit payments. Morgen falsely promised investors that their funds would be used to purchase real property to be rented or Continue Reading →
First Amendment Versus Ballwin City Hall
Dennis Norman
“Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances.”
This morning I saw an article on STL Today about a retired art teacher that was sentenced to 20 days in jail after he refused to make changes to art he has displayed in his front yard that “court and city officials have deemed dangerous.”
Dennis Norman
As the real estate market and industry continues to struggle to try to pull out of the dumps, another blow could come soon from Congress in the form of new tax burdens on real estate.
Congress is proposing that all owners of rental properties be required to complete and file 1099 forms for all service providers that have performed work on their properties, such as electricians, handymen, landscapers, etc. If passed, this would require all landlords, even the smallest of which, to go through additional expense and burden (or face penalties themselves from the IRS) to Continue Reading →
Dennis Norman
UPDATE – May 17, 2010 – THANKS TO MISSOURI LAWMAKERS (and the efforts of the Missouri Association of REALTORS and St. Louis Home Builders Association, readers of this post that responded, and others) THE MECHANICS LIEN LAW PASSED! ASSUMING THE GOVERNOR SIGNS IT INTO LAW FINANCING ON NEW HOMES AS WE KNOW IT HAS BEEN PRESERVED!
This week, which is the last week of the legislative session in Jefferson City, the Missouri Senate will probably take up debate on HB 2058, which is a bill that makes needed changes to the Mechanic’s Lien Statute in Missouri Continue Reading →
Dennis Norman
Last October I wrote about an effort by the Missouri Association of REALTORS (MAR) to protect Missouri homeowners from facing double taxation through a real estate transfer tax by backing an effort to amend the Missouri Constitution to prohibit such a tax. To get the issue on November’s ballot, petitions with signatures from a requisite number of Missouri voters needed to be submitted to the Secretary of State by yesterday.
Today, the Vote YES to Stop Double Taxation Committee, announced that on Sunday it turned in petitions, signed by “tens of thousands of registered voters”, to the Continue Reading →
Dennis Norman
Although 2010 is a non-reassessment year, property owners in St. Louis County who disagree with the Assessor’s opinion of the value of their property, have the option to exercise their right to appeal that valuation to the St. Louis County Board of Equalization.
Missouri state law requires the Assessor to determine a property’s fair market value as of January 1 of the reassessment year, which is every odd numbered year, such as 2009 and 2011. Since values are established for a two-year time period, appellants need to be aware that the market conditions of January 1, 2009 Continue Reading →
The United States Attorney’s Office announced today that Aaron Duncan, the former CEO and owner of The Duncan Group, has pleaded guilty to fraud charges involving a $3.9 million investment scheme.
According to court documents, Duncan represented that The Duncan Group was involved in real estate investments, including buying, rehabilitating, and selling residential real estate. Duncan solicited investors in Missouri and around the United States to participate in his real estate projects through The Duncan Group by making false representations regarding the security of investments and the rates of returns promised. Bank records revealed that Duncan operated The Duncan Group Continue Reading →
Dennis Norman
This past Thursday Congress passed H.R. 4851 and President Obama signed it into law the same day extending the National Flood Insurance Program, which had expired on March 28th, through May 31, 2010.
The National Association of REALTORS, which lobbied hard for this extension, now says they are working with Congress to get the National Flood Insurance Program reauthorized before it expires again on May 31st.
Dennis Norman
As readers know, I have been somewhat critical of the Home Affordable Modification Program (HAMP) which is part of the Obama administrations’ Making Home Affordable Program for a few reasons, one is I believe it is just a temporary “band-aid” and not a cure for the problem and two, it does not appear the program is going to help near as many people as the Obama administration initially said it would. Yesterday a report was issued that shows there is progress being made and, through the end of March, a total of 230,000 homeowners Continue Reading →
Dennis Norman
At the Federal Open Market Committee meeting on March 16th it was suggested that “economic activity expanded at a moderate pace in early 2010″. Unfortunately, when it came to the housing market, the news was not as good and it was noted that “housing activity remained flat and the nonresidential construction section weakened further.” The staff went on to say that activity in the housing sector appears to “have flattened out in recent months” and that “sales of both new and existing homes have turned down, while starts of single-family homes were about unchanged despite the substantial Continue Reading →
Dennis Norman
Back in early December I did a post about a new program that was announced in November, the Home Affordable Foreclosures Alternative (HAFA) Program which is scheduled to go into effect April 5, 2010. There was recently supplemental documentation published as well as FAQ’s about the program and I have to admit, it seems to me the government is getting it right with this program.
THE HAFA PROGRAM:
The Home Affordable Foreclosure Alternatives Program provides financial incentives to loan servicers as well as borrowers who do a short-sale or a deed-in-lieu to avoid foreclosure on Continue Reading →
Dennis Norman
UPDATE: March 26, 2010: Pres Obama signed HR 35909 into law on March 23, 2010. Yesterday the House and Senate approved the final version of HR 4872 and it now goes to the President for his signature (this is the bill that “taxes” real estate to pay for health care as I explained below) – end of update
Unless you live in a cave you have probably heard by now that yesterday Congress passed HR 3590, the “Patient Protection and Affordable Care Act”, or to put it more short and to the point, Pres. Obama’s Continue Reading →
Dennis Norman
The Federal Reserve announced it will stop purchasing mortgage-backed securities by the end of March.
In November, 2008, the Federal Reserve announced, in an effort to help the housing market, it would purchase mortgage-backed securities. Then, in March, 2009, the Fed increased the total amount of money they would invest in such securities to $1.25 trillion and estimated that they would complete those purchases by the end of first quarter 2010.
The Fed’s action I think certainly added some liquidity and confidence to the ailing housing market and now, that the time has come Continue Reading →
The Internet Crime Complaint Center (IC3) and the Federal Bureau of Investigation have published a report about common real estate scams and rental scams they are finding and how to avoid them. Like most scams there are warning signs and red flags that can help you avoid falling victim; knowing what to look for is key.
The IC3 reminds people to be cautious when using the internet to either advertise real estate for sale or rent or to find a property to rent or buy.
For Landlords and Sellers of Property:
Look out for: Rental scams occur when the victim Continue Reading →
Dennis Norman
Appellant Says Bellefontaine Ordinance is Unconstitutional but City Inspector Still Enforcing It
Last month I did a post about a decision handed down by the Missouri Court of Appeals-Eastern District that was a significant victory for St. Louis property owners by striking down part of an ordinance that violates our property rights as well as our First Amendment Rights to free speech.
Unfortunately, it appears no one told the City of Bellefontaine Neighbors they lost the case, or if they did, some may be choosing to ignore the court’s decision. I say this because I heard Continue Reading →
Dennis Norman
Update: March 23, 2010: In spite of the concern of many organizations including the St. Louis Association of REALTORS, the Mortgage Bankers Association and the Title Insurance folks, the Board of Alderman passed the vacant property ordinance on March 12th – Now that lenders and title companies are aware of potential title and lien issues with this bill I have no doubt investors, and even homeowners, are going to run into some roadblocks when trying to finance property in the City of St. Louis – 2/3 of the Alderman voted in favor of the bill:
Dennis Norman
This story is part of my ongoing series on how local laws negatively impact the property rights of property owners in the St. Louis area
Unfortunately I don’t have to try too hard to find examples of local laws that seriously impact the rights of property owners in the St. Louis area, particularly those property owners that are landlords or other investors.
My story today comes from a friend of mine, a St. Louis REALTOR(R) that buys homes for his rental portfolio. For the sake of the article, and to help him avoid Continue Reading →