Real Estate
South Florida feels crunch of exotic loans
Jack Dolan and Matt Haggman of The Miami Herald reported that home buyers in South Florida have been signing so-called toxic mortgages at rates far higher than buyers in other areas of the country. Unlike the well-publicized problems with sub-prime loans, these toxic mortgages are concentrated in some of the nation’s most affluent and desirable…
Read MoreSpeculators driving foreclosures in Nevada
Southern Nevada’s foreclosure rates are the nations highest, due primarily to investors walking away from their property. “Roughly 85 percent of actual auctions or repossessions of homes from March 1 through Aug. 31 involved properties not occupied by their owners,” according to a report by Jeff German, Steve Kanigher and Alex Richards of the Las…
Read MoreCritics seek to close tax loophole
Palm Beach Post reporter Jeff Ostrowski reports that “trophy properties” in Florida are changing hands, legally, for $10 and costing the state millions in tax revenue. Commercial property deals are being recorded as “transfers of assets” instead of actual sales. In the case of a $600 million property, 70 cents in taxes were collected as…
Read MoreArizona developer’s checkered past
Mark Flatten of the East Valley Tribune in Phoenix completed a series on Jim Rhodes who has become in the most influential developer in Arizona’s East Valley. In December of 2006, he purchased over 1,000 acres of state trust land. The $58.6 million purchase gave him the right to “master-plan 7,700 acres in the area…
Read MoreVirginia investment company profits off blight
Meghan Hoyer and Matthew Jones of The Virginian-Pilot investigated the purchase of over 250 houses and lots in depressed areas of cities such as Portsmouth, Norfolk and Newport News by a Virginia Beach-based company and its investors. Five years later, half the properties still sit in disarray with thousands owed in back taxes. “Since forming…
Read MoreSold a Nightmare
A four-part series by Binyamin Appelbaum, Lisa Hammersly Munn and Ted Mellnik of The Charlotte (N.C) Observer profiles Beazer Homes USA and the failure of starter-home neighborhoods in the Charlotte area. As it sold homes and arranged mortgages, the company crossed the line between selling to people who could barely afford homes and selling to…
Read MoreBaltimore’s ground rent mess
A series by Fred Schulte and June Arney of The (Baltimore) Sun reveals that an archaic law is creating problems for thousands of Baltimore residents. “Baltimore’s arcane system of ground rents, widely viewed as a harmless vestige of colonial law, is increasingly being used by some investors to seize homes or extract large fees from…
Read MoreFraudulent real estate company stole millions from unsuspecting buyers
Catherine E. Shoichet of the St. Petersburg Times reports on a bogus real estate company that defrauded unsuspecting buyers of millions. Natalia and Victor Wolf, owners of Sky Development Group, are currently under investigation for real estate fraud; no charges have been filed in the case. The Wolfs apparently fled the country in October and…
Read MoreSubprime loans cripple minority homeowners
Vikas Bajaj and Ron Nixon of The New York Times looked at the impact of subprime loans on minority homeownership over the past six years. The very loans that allowed for the purchase of a home are now crippling buyers’ finances as interest rates inflate, leading to an increase in delinquencies and foreclosures. “Industry officials…
Read MoreSuspiscious real estate deals in Ohio raise concern
Geoff Dutton of The Columbus Dispatch dissected unusual property deals worth more than $11 million involving Middle Eastern buyers who paid far above the list price on expensive houses. The catch: “the sellers must agree to immediately refund the difference between the asking price and the sale price“. Neighbors and real-estate experts fear that the…
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