Legal - St Louis Real Estate News

The Five Best Places to Find Foreclosure Bargains

By Dennis Norman, on September 7th, 2010

Dennis Norman

When I first entered the real estate business in 1979, at the age of 18 which seems so long ago) foreclosures were a mystery to most people and certainly no one looking for a home to live in looked to buy a foreclosure. Homes that were being foreclosed upon were advertised in legal newspapers that no one other than some speculators, attorneys and bankers subscribed to basically. Here in St. Louis I was one of a couple of handfuls of real estate investors that would do the research then go out and try to buy foreclosures Continue Reading →

Carnahan files appeal to stop effort to prevent double taxation in Missouri

By Dennis Norman, on September 1st, 2010

Dennis Norman

UPDATE 9/03/2010 -Good News! I’m waiting for confirmation from the Secretary of State’s office, but I have been told that the Secretary of State has decided to drop the appeal and allow this issue to move forward to the voters in November! A huge victory for Missouri property owners! – end of update.

Yesterday I wrote about a Cole County Judge ruling against the Missouri Secretary of State and in favor a group working to prevent double taxation, by means of a transfer tax or fee on real estate, in Missouri clearing the way to take Continue Reading →

Private Transfer Fee Covenants Draw Fire From FHFA

By Dennis Norman, on August 12th, 2010

Dennis Norman

Today the Federal Housing Finance Agency announce proposed guidance that would prohibit Fannie Mae, Freddie Mac and the Federal Home Loan Banks from investing in mortgages with private transfer fee covenants. Considering that covers the lenders that originate, invest in or, or insure over 90 percent of the homes in the U.S. that pretty much puts the kibosh on financing a home with such a transfer fee.

Continue Reading →

St. Louis Area Property To Be Sold At Tax Sales

By Dennis Norman, on July 19th, 2010

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 →

Homeowners Should Think Twice if Considering a ‘Strategic Default’

By Dennis Norman, on July 12th, 2010

Dennis Norman

Last month I wrote about a new policy implemented by Fannie Mae that would “lock-out” borrowers from getting a Fannie-Mae insured loan for 7 years if they did a “strategic default” or otherwise did not act in good faith and were foreclosed upon. In a nut shell, the borrower that Fannie Mae is targeting here is the borrower that has the financial ability to make their payments, accept a loan modification or other “work-out” from Fannie Mae but instead chooses just to walk away from their home and letting the lender foreclose.

In addition to locking Continue Reading →

New Home Buyers At Risk of Losing Fixed-Rate Mortgages Again

By Dennis Norman, on May 27th, 2010

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 →

Ponzi Scheme and Mortgage Fraud Mastermind Sentenced to 15 Years, Eight Months

By Dennis Norman, on May 22nd, 2010

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 →

Help for homeowners facing foreclosure or are underwater

By Dennis Norman, on March 26th, 2010

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 →

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 →

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 →

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 →

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 →

Title Insurance 101 from a St. Louis Title Professional – Final post in the series

By Dennis Norman, on September 5th, 2009

Dennis Norman

By: Dennis Norman

Over the past two days I published the first part and second part of my E-View TMwith Wendy Cromer, Vice-President of Marketing for Security Title Insurance Agency, LLC about title insurance, the new laws affecting it and things consumers should know.

Wendy Cromer, Vice-President of Marketing, Security Title Insurance Agency LLC

Today were going to do the final part of our E-View TM with Wendy:

Dennis-Wendy, title insurance seems to be one of those things that is a mystery to most homeowners. Can you please explain what title insurance is and Continue Reading →

Title Insurance 101 from a St. Louis Title Professional – Part 2 of a series

By Dennis Norman, on September 4th, 2009

Dennis Norman

By: Dennis Norman

Yesterday I published the first part of my E-View TM with Wendy Cromer, Vice-President of Marketing for Security Title Insurance Agency, LLC about title insurance, the new laws affecting it and things consumers should know.

Wendy Cromer, Vice-President of Marketing, Security Title Insurance Agency LLC

Today we’ll pick up where we left off yesterday in our E-View TM:

Dennis-Wendy, here in St. Louis we have “split-closings” which I think are viewed by many in the title insurance industry as a bad thing, and in fact the new laws we discussed yesterday Continue Reading →

New Laws affecting real estate in Missouri

By Dennis Norman, on August 25th, 2009

Dennis Norman

By: Dennis Norman

The Missouri Legislature passed several bills this past session affecting real estate or property in Missouri, most of which were signed into law by Governor Nixon and go into effect August 28, 2009. Below is a brief synopsis of the new laws and their purpose based upon the bill summary. (Unless noted different the new law goes into effect August 28, 2009- For the complete bill click on the bill number): Continue Reading →

Avoid mortgage modification and foreclosure rescue scams

By Dennis Norman, on July 16th, 2009

By: Dennis Norman

Recently the The Office of the Comptroller of the Currency issued a Consumer Advisory. The Advisory contains consumer tips for avoiding mortgage modification scams and foreclosure rescue scams.

The advisory states; “Scams that promise to “rescue” you from foreclosure are popping up at an alarming rate nationwide, and you need to protect yourself and your home. If you’re falling behind on your mortgage, others may know it too – including con artists and scam artists. They know that people in this situations are vulnerable and often desperate.”

The OCC suggests that before you do business with someone Continue Reading →