Legal and Regulatory - St Louis Real Estate News

Health Care To Be Subsidized By Real Estate

By Dennis Norman, on March 23rd, 2010

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 →

Feds pulling support of mortgage market- will interest rates increase?

By Dennis Norman, on March 22nd, 2010

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 →

How to avoid being a victim of a real estate or rental scam

By Dennis Norman, on March 15th, 2010

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 →

St Louis Real Estate – Bellefontaine Neighbors Lawsuit Update

By Dennis Norman, on March 12th, 2010

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 →

St Louis Real Estate – City of St Louis Vacant Property Bill Update

By Dennis Norman, on March 12th, 2010

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:

The Continue Reading →

St Louis Real Estate – What happened to property rights?

By Dennis Norman, on March 9th, 2010

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 →

Thinking of “walking away” from your mortgage?

By Dennis Norman, on March 3rd, 2010

Dennis Norman

You may want to consider possible legal issues before deciding to “walk away”

Homeowners who are considering “walking away” from their home to avoid making their mortgage payment need to know that their mortgage company may try to file a lawsuit to recover the amount owed on the home.

In addition, homeowners who sell their home for less than the amount they owe – a process called a “short sale” — may be sued for the unpaid balance, even after the sale of the home. Finally, homeowners with unpaid home equity loans or second mortgages may also Continue Reading →

Missouri Offers to Pay Property Taxes but Homebuyers not biting

By Dennis Norman, on March 2nd, 2010

Dennis Norman

UPDATE June 7, 1010 – Here are links to the Forms from MHDC to claim the tax credit as well as some sample forms they have provided showing how to fill them in:

Program ApplicationHome Purchase AffidavitPromissory NoteHope Program Information and InstructionsSample Forms

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Dennis Norman

Back in December I wrote a post about a $35 million economic development initiative that was approved by the Missouri Housing Development Commission which included $15 million to pay the first-year of property taxes for qualified homebuyers who purchase a new or existing home after January Continue Reading →

Appeals Court Rules Builder Incentive did not violate RESPA

By Dennis Norman, on March 1st, 2010

Dennis Norman

The United States Court of Appeals for the Eleventh Circuit recently consdered an appeal by the plaintiffs of a class action lawsuit again D.R. Horton, Inc. and DHI Mortgage, Co brought by John R. Yeatman and Eleanor E. Yeatman on behalf of themselves and all similarly situated individuals.

The lawsuit stems from the Yeatman’s purchase of a home from DR Horton in 2006 in which the purchase agreement gave the Yeatmans the option of receiving a discount on their closing costs on the house, provided they used DHI Mortgage as their mortgage lender. This was not Continue Reading →

St Louis Real Estate – Vacant Property Bill and It’s Affect on Property Rights

By Dennis Norman, on February 26th, 2010

Dennis Norman

What do sex offenders and owners of vacant property have in common?

UPDATE: March 8, 2010 – I found out today the bill that was actually perfected last Friday was a floor substitute…Unfortunately the changes made to the bill were minor- they changed the public data base so that you have to enter a property address in order to look up the owners personal information (including phone number and email address) and they changed the wording to no longer make real estate agents and property managers responsible for property they don’t own. So basically, just a little Continue Reading →

FDIC’s Sale of IndyMac to One West Bank – Sweetheart deal or not?

By Dennis Norman, on February 15th, 2010

Dennis Norman

Last week a friend emailed me a link to a video titled “The Indymac Slap in Our Face” that was created by Think Big Work Small. I watched the video which gave a recap of the failure of Indymac bank back resulting in it’s seizure by the FDIC in July, 2008, and the ultimate sale by the FDIC of Indymac Bank to One West Bank in March, 2009.

According to the video, One West Bank received a cushy, “sweetheart deal” and implied it was related to the fact that the owners of One West Bank include Continue Reading →

St Louis Real Estate – Interest Rates Hold Steady – Still Time for Tax Credit

By Robert Fishel, on February 10th, 2010

There is time left for qualified buyers to take advantage of the 2009 First-Time Home Buyer’s $8,000 Tax Credit & Repeat Home Buyer’s $6,500 Tax Credit. Binding sales contract must be executed by April 30, 2010, the closing can be extended until June 30, 2010. The newly expanded first-time homebuyer and repeat homebuyer tax credit was signed into law a few months ago, but many married, unmarried, or soon to be married tax filers, are confused about claiming these credits. Understandably so. There are numerous scenarios that can come up, e.g. “I am a long-time principal homeowner but my Continue Reading →

St Louis Real Estate-Appellant Court Decision Huge Victory for Property Owners

By Dennis Norman, on February 9th, 2010

Dennis Norman

Appeals Court Strikes Down Bellefontaine’s Ordinance Affecting Real Estate For Sale Signs

At the end of January the Missouri Court of Appeals-Eastern District handed down a decision on a case that I think is a significant victory for St. Louis property owners and strikes down part of an ordinance that violates our property rights as well as our First Amendment Rights to free speech.

The case involves Mark Scatizzi, a local REALTOR® who, after listing a home for sale at 1027 Addision, in the City of Bellefontaine Neighbors, advertised the property for sale and posted a Continue Reading →

IRS Releases Instructions on how to Claim Homebuyer Tax Credit

By Dennis Norman, on January 15th, 2010

Dennis Norman

If you are one of the million-plus homebuyers that was fortunate enough to qualify for the Home Buyer tax credit, read on for information on how to claim your credit.

Today the Internal Revenue Service released a new form that eligible homebuyers must need to use to claim the first-time homebuyer credit this tax season, along with instructions and guidelines for other documentation that must accompany your tax return.

The new form and instructions follow major changes in November to the homebuyer credit by the Worker, Homeownership, and Business Assistance Act of 2009. The new law Continue Reading →

Will you owe taxes on a short-sale or foreclosure?

By Dennis Norman, on January 11th, 2010

Dennis Norman

Depending on which estimate you believe, somewhere between one-third and one-half of the homeowners with a mortgage in the U.S. owe more on their homes than their homes are currently worth. This has lead to an unprecedented amount of short-sales and in many cases, a lender “forgiving” you of the short-fall (the amount of your loan your sale proceeds were not adequate to pay) which, in the past could have left you owing taxes on the “forgiven debt”.

For some of those underwater homeowners that are not fortunate enough to do a short sale they may Continue Reading →

MHDC approves $20 Million incentive for Missouri home buyers

By Dennis Norman, on December 18th, 2009

Dennis Norman

UPDATE June 7, 1010 – Here are links to the Forms from MHDC to claim the tax credit as well as some sample forms they have provided showing how to fill them in:

Program ApplicationHome Purchase AffidavitPromissory NoteHope Program Information and InstructionsSample Forms

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Just moments ago, the Missouri Housing Development Commission passed at $35 million economic development initiative. Part of this initiative (to the tune of $20 million worth) is aimed toward helping stimulate home sales in Missouri.

The initiative includes:

$15 million to pay the first year of property taxes for qualified homebuyers who Continue Reading →

Five Indicted in Foreclosure Rescue and Mortgage Fraud Scheme

By News Desk, on December 12th, 2009

Department of Justice Press Release

Scam Involved Lawyers, Mortgage Brokers, and More Than $14.6 Million in Loans

PHILADELPHIA—A 15-count indictment was filed today against five defendants charged in a $14.6 million mortgage fraud scheme that resulted in at least 35 fraudulent mortgage loans, announced United States Attorney Michael L. Levy, Special Agent-in-Charge of the FBI Janice K. Fedarcyk, and Pennsylvania Secretary of Banking Steven Kaplan. Charged are Edward G. McCusker and John Alford Bariana, owners of Axxium Mortgage, Inc., McCusker’s wife, Jacqueline, and Jeffrey A. Bennett and Stephen G. Doherty, owners of the Doylestown law firm Bennett & Doherty, Continue Reading →

Is the Obama Administrations’ Home Affordable Modification Program (HAMP) working?

By Dennis Norman, on December 11th, 2009

Dennis Norman

This week the Treasury Department issed a report which included stats on the Home Affordable Modification Program (HAMP) which is part of the Obama administrations’ Making Home Affordable Program and “is a loan modification program designed to reduce delinquent and at-risk borrowers’ monthly mortgage payments”. The HAMP program got underway around March of this year and is set to expire December 31, 2012. According to the government website HAMP is intended to help keep “3 to 4 million Americans in their homes by preventing avoidable foreclosures.”

So is the Loan Modification plan working?

To try to Continue Reading →

The Cost of Not Walking Away From An Underwater Mortgage

By Debi Averett, on November 27th, 2009

In the ongoing debate about whether one should walk away from an underwater mortgage or not, one University of Arizona professor speaks out strongly in favor of taking a hike. According to Brent T. White, an associate professor of law at the University of Arizona:

A failure to grasp the true economics of the situation is holding back many Americans whose home values have dropped far below the amount they owe and who would be better off renting, Mr. White says. Fear, shame and guilt also are preventing rational decisions, he believes. And, he says, those “emotional constraints” are encouraged Continue Reading →

New updated info from IRS on Homebuyer Tax Credit

By News Desk, on November 25th, 2009

First-Time Homebuyer Credit Extended to April 30, 2010; Some Current Homeowners Now Also Qualify

WASHINGTON — A new law that went into effect Nov. 6 extends the first-time homebuyer credit five months and expands the eligibility requirements for purchasers.

The Worker, Homeownership, and Business Assistance Act of 2009 extends the deadline for qualifying home purchases from Nov. 30, 2009, to April 30, 2010. Additionally, if a buyer enters into a binding contract by April 30, 2010, the buyer has until June 30, 2010, to settle on the purchase.

Continue Reading →

President of Metropolitan Money Store Sentenced to Over 12 Years in Prison for $37 Million Mortgage Fraud Scheme

By News Desk, on November 21st, 2009

Joy Jackson Personally Responsible for Over $16 Million in Losses to Mortgage Lenders; Used Over $800,000 of Fraudulently Obtained Proceeds to Pay for Her Wedding

U.S. District Judge Roger W. Titus sentenced the president of the Metropolitan Money Store, Joy Jackson, age 41, of Fort Washington, Maryland, today to 151 months in prison followed by five years of supervised release for conspiracy to commit mail and wire fraud in connection with a mortgage fraud scheme that falsely promised to help homeowners facing foreclosure keep their homes and repair their damaged credit, announced United States Attorney Continue Reading →

Justice Department Files Fair Housing Lawsuit in Missouri Against Owner and Managers of Federally-Subsidized Property for Race and Sex Discrimination

By Dennis Norman, on November 12th, 2009

The Justice Department announced it has filed a lawsuit today in federal court for the Eastern District of Missouri alleging a pattern or practice of violations of the Fair Housing Act by the owner and managers of Forum Manor Apartments, a federally-subsidized apartment complex, for refusing to rent to African-Americans and males, refusing to allow tenants to have African-American visitors, sexually harassing female tenants and retaliating against tenants who complained about such discrimination.

Continue Reading →

Mortgage Fraud Surge Investigation Nets More Than 100 Individuals Throughout Middle District of Florida

By News Desk, on November 8th, 2009

Department of Justice Press Release

TAMPA—United States Attorney A. Brian Albritton today announced the results of a nine-month-long Mortgage Fraud Surge investigation that has resulted in charges against more than 100 defendants and involves allegations concerning more than $400 million in loans procured by fraud and more than 700 properties. U.S. Attorney Albritton is holding events throughout the district this week to highlight the announcement.

There are currently mortgage fraud-related charges pending against approximately 500 defendants in federal mortgage fraud cases around the nation. The cases concern both mortgage schemes designed to defraud mortgage lenders and “foreclosure rescue Continue Reading →

Home buyer tax credit extension update; House Passes Bill…On to President for approval

By Dennis Norman, on November 5th, 2009

Dennis Norman

UPDATE 11/06/09 5:14 p.m. – Thanks to Denis T who was commenting on this post, click here to go to the IRS site with information on the new tax credits.

UPDATE 11/06/09 1:00 p.m. – I just heard that a short while ago President Obama signed the bill into law. IT’S OFFICIAL! So if you are in the market for a home .. Go For It!

Continue Reading →

Home buyer tax credit extension update; Senate Passes Bill

By Dennis Norman, on November 4th, 2009

Dennis Norman

UPDATE 11/05 2:00 pm – The House has passed the bill by a vote of 403 – 12 – It now goes to the President who is expected to sign today or tomorrow.

UPDATE 11/05, 12:35 pm- To read the section of H.R. 3548 that contains the details concerning the first-time home-buyer tax credit click here.

If you care to read the entire bill click here.

UPDATE: At 5:28 p.m. by a vote of 98 to 0 the Senate Passed H.R. 3548 – It now will go to the House where it is expected to pass Continue Reading →

Home buyer tax credit update-November 2, 2009

By Dennis Norman, on November 2nd, 2009

Dennis Norman

UPDATED: 6:15 pm Central Time-

The Senate voted 85-2 this afternoon to end debate on the amendment..This is clears a procedural hurdle and will allow the bill and amendment to be voted on by the Senate, most likely on Tuesday or Wednesday….If passed by the Senate it would then need to go back to the House for passage and then on to the President.

Here’s the latest info I have on the possible extension of the home-buyer tax credit:

The Dodd-Lieberman-Isakson Amendment I spoke of in last Friday’s update was added to the unemployment bill Continue Reading →

Home buyer tax credit update-October 30, 2009

By Dennis Norman, on October 30th, 2009

Dennis Norman

In yesterday’s update I had some rather encouraging news about the possible extension of the first-time home buyer tax credit of $8,000 that has stimulated some home buying but is set to expire on November 30th. The good news was that there is an agreement amongst the powers that be with regard to extending the home buyer tax credit, which in itself is a HUGE step toward getting the credit extended, but as I said yesterday, “the fat lady hasn’t sang yet”.

Based upon the latest news I just received in an email update from the Continue Reading →

Home buyer tax credit update

By Dennis Norman, on October 29th, 2009

Dennis Norman

I have been talking a lot lately about the first-time home buyer tax credit of $8,000 that has stimulated some home buying but is set to expire on November 30th. I have also shared the efforts by organizations such as the National Association of REALTORS, The Mortgage Bankers Associaiton, The National Association of Home Builders and Fix Housing First to urge Congress to extend the home buyer tax credit as well as expand it to include more than just first-time home buyers.

Unfortunately there are some inaccurate reports I’m seeing this morning that indicating the Senate Continue Reading →

Web Site Launch Promoting “Vote YES to Stop Double Taxation”

By Dennis Norman, on October 24th, 2009

A new Web site provides Missouri voters with information about a proposed state constitutional amendment barring politicians from imposing double taxation on sales of homes and other real estate. I would encourage Missouri residents to visit www.YesToSaveHomes.com to learn more about the proposal.

Continue Reading →

Homebuyer Tax Credit Best Tool for Sustaining Housing Recovery, Says NAR

By Dennis Norman, on October 8th, 2009

Dennis Norman

By: Dennis Norman

The best available tool for sustaining the still-fragile housing market is the $8,000 homebuyer tax credit, (expires November 30) and it is essential that Congress extend the credit into 2010, the National Association of Realtors® testified at a hearing of the U.S. House Small Business Committee yesterday.

NAR Regional Vice President Joseph L. Canfora said “the credit is working,” pointing out that the 355,000 to 400,000 transactions directly attributable to the credit made a significant dent in the housing inventory and will help to stabilize home prices. Further, the credit has provided a Continue Reading →