Headlines in Real Estate for week ending October 12th 2012

This week in real estate headlines: Fraud, Lender forced home owners insurance and the clock is ticking for short sale tax breaks. Here are the headlines in real estate you may have missed this week:

Short sale fraud “heating up,” expert says (Orange County Register)
A panel of short sale experts presenting at CALIFORNIA REALTOR® EXPO 2012 in Anaheim last week said that “fraud is heating up like a wildfire right now …” and “we’ve got to be aware that this fraud is changing directions, jumping containment lines.” Read Full Story

The high price of “forced” insurance (via The New York Times)
Borrowers who allow their homeowners’ insurance to lapse will often get stuck with a bill for much more expensive coverage, courtesy of their lenders. Read Full Story

Will time run out on short sale tax breaks? (via The Orange County Register)
A law exempting some homeowners from having to pay taxes on debt forgiven by the bank – the Mortgage Forgiveness Debt Relief Act and Debt Cancellation – is set to expire at the end of this year. Read Full Story

U.S. builders put home buyers into credit boot camp (via Reuters)
Home builders are offering sophisticated financial advice to prospective home buyers who would not normally qualify for loans. Read Full Story

The rental alternative to foreclosure (via The New York Times)
For homeowners who have been buffeted by the foreclosure process, the suggestion that they willingly hand over their deed to the lender and rent the home instead may only add insult to injury. Read Full Story

Mortgage modification scam watchdog cheers federal crackdown (via The Los Angeles Times)
Since early 2010, a leading civil rights group has helped compile a database of approximately 26,000 complaints about mortgage modification scams – attempts by fraudsters to take advantage of those hardest hit by the housing market meltdown. Read Full Story

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