Saturday, January 12, 2013

New federal indictment coming soon in HOA scheme - News - ReviewJournal.com

New federal indictment coming soon in HOA scheme - News - ReviewJournal.com:
"Federal prosecutors are preparing to seek a long-awaited indictment as early as next week in their final push to charge conspirators in a massive scheme to take over Las Vegas Valley homeowners associations. The Las Vegas Review-Journal has previously reported that as many as a dozen defendants could be named in the corruption indictment being sought by attorneys with the Justice Department's Fraud Section in Washington, D.C."
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There have been 28 guilty pleas so far. If the article is correct in saying that as many as twelve new indictments are coming, it would make the network of schemers as many as forty people. Contemplate that: an industry so troubled that, in a single mid-sized city, there is a fraud network encompassing forty people.

Brockton, Massachusetts, Considers Eminent Domain To Address Foreclosures

Brockton, Massachusetts, Considers Eminent Domain To Address Foreclosures:
In a move that’s pitting grassroots housing activists against Wall Street interests, the City Council of Brockton, Mass., decided this week to commission a study into the feasibility of using eminent domain powers to seize the mortgages of local residents struggling to pay off their loans.
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This idea has popped up elsewhere. It will be interesting to see what happens if and when a city does this and it gets challenged in court.

Friday, January 11, 2013

Former Clinton Township housing cooperative employee gets 3 years for theft - The Macomb Daily

Former Clinton Township housing cooperative employee gets 3 years for theft - The Macomb Daily:
A 36-year-old woman was ordered to spend more than three years in prison and pay $79,000 in restitution for stealing from the Clinton Township housing cooperative for which she worked.
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Yet another one of those isolated instances...

Mayor Rahm Emanuel to announce Midway privatization committee - Transportation News - Crain's Chicago Business

Mayor Rahm Emanuel to announce Midway privatization committee - Transportation News - Crain's Chicago Business:
Midway is one of Chicago's two major airports.  The first attempt to privatize it failed before the deal could be consummated.  Probably a good thing when you consider the disastrous parking meter privatization deal.  Now, here they go again.  Here's my favorite line:  "The committee will be given the authority to hire an independent auditor to make sure the arrangement bears little resemblance to the botched parking meter deal, according to the source."

Thursday, January 10, 2013

New mortgage rules block no-doc loans, limit debt - Chicago Sun-Times

New mortgage rules block no-doc loans, limit debt - Chicago Sun-Times

"Lenders will be required to verify and inspect borrowers’ financial records. The rules discourage them from saddling borrowers with total debt payments totaling more than 43 percent of the person’s annual income. That includes existing debts like credit cards and student loans...The rules limit features like teaser rates that adjust upwards and large “balloon payments” that must be made at the end of the loan period. They include several exceptions aimed at ensuring a smooth phase-in and protecting access to credit for underserved groups. For example, the strict cap on how much debt consumers may take on will not apply immediately. Loans that meet separate federal standards also would be permitted for the first seven years. Balloon payments would be allowed for certain small lenders that operate in rural or underserved communities, because other loans may not be available in those areas."
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9 Worst Recession Ghost Towns in America

9 Worst Recession Ghost Towns in America:
"America has a new kind of ghost town, haunted by the spirits of the recession. Developers caught up in the runaway housing boom overbuilt and oversold lots, houses and condos, leaving neighborhoods barren with uninhabited model homes, eerily desolate luxury condos, and abandoned McMansions in the aftermath of the collapse."
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These are reminders of lessons that will be quickly forgotten.

Wednesday, January 09, 2013

Illegal short-term rentals flood N.O. market ahead of Super Bowl | wwltv.com New Orleans

Illegal short-term rentals flood N.O. market ahead of Super Bowl | wwltv.com New Orleans
"With Super Bowl 2013 just weeks away, acquaintances from out of town are asking the Uptown resident if he will be renting out his place."The houses in our neighborhood have been going for wild amounts of money, up to $20,000 for the weekend," said Blaine, who knows short-term rentals are illegal in the city."
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Interesting property rights issue...