Real Estate News – August 1-2, 2011

Foreclosure Defense & Bankruptcy: Banks May Be In Bigger Hole Than Borrowers (via

A mortgage lender is being sued by the U.S. Justice Department in an effort to recoup $1.6 million in insurance premiums the Federal  Housing Administration was forced to pay on homes that were foreclosed. The lawsuit was filed against an Illinois based lender, MDR Mortgage Corporation (via

A Palm Beach County homeowner renting to Section 8 tenants will lose the federal housing supplement after a court ruled the money should be used to pay his delinquent HOA fees (via

Officials in neighboring Mid-western states – Illinois and Indiana – have taken action against companies they say are violating the law and abusing consumers with so-called foreclosure rescue plans (via

As politicians continue to battle over the national debt ceiling in the nation’s capitol , real estate analysts fear that the wrong deal could send the sluggishly recovering housing market into a tailspin (via

In an attempt to get a better understanding of what’s happening in the Twin Cities housing market, Herb Tousley at the University of St. Thomas has created a monthly housing market index that he hopes will offset some of the “issues” he sees with the closely watched Case- Shiller report (via

Buyers of certain high-end homes will face higher mortgage rates and heftier down payment requirements starting Oct. 1, when the federal government takes a small step back from the mortgage market.Fannie Mae, Freddie Mac and the Federal Housing Administration currently buy and guarantee mortgages of up to $729,750. That government support allows borrowers to put down as little as 3.5 percent and enjoy lower interest rates (via

The Rev. Mark J. Calhoun reported to a federal prison Monday to begin serving a 16-year prison sentence for his role in a mortgage fraud scheme that involved more than $10 million in fraudulent loans (via