Real Estate News – June 7, 2011

They’ll be paying plenty to fix damaged property on the North Side, but at least homeowners battered by the May 22 tornado won’t get nicked for sidewalk assessments, if the Minneapolis City Council follows a 2009 example (via StarTribune.com): http://bit.ly/keum8e

Fannie Mae announced this week new rules that will require mortgage servicers to act more quickly and consistently in helping troubled home owners avoid foreclosure (via REALTORMag): http://bit.ly/j0S7Ps

While the Obama administration has continued to focus its mortgage relief program, the Home Affordable Modification Program, on the problem of risky loans, the biggest cause of foreclosures these days is actually unemployment (via AllGov.com): http://bit.ly/kDoRYs

The nation’s largest mortgage companies are operating on the assumption that they will have to pay as much as $20 billion to resolve claims of widespread foreclosure abuse, an amount four times what they had originally proposed, the top federal official overseeing the discussions told state officials Monday, according to people who participated in the conversation (via HuffingtonPost.com): http://huff.to/ktz7D7

A CoreLogic Inc. report shows that 38 percent of home owners with second mortgages are underwater, compared to just 18 percent of borrowers without such loans (via REALTORMag): http://bit.ly/kGCol1

Banks and distressed home sellers stand to lose more than $375 million this year from a short sale scam that has sellers and banks agreeing to sell homes at very undervalued prices, according to a new study by CoreLogic (via REALTORMag): http://bit.ly/jH5OeN