Category Archives: Kansas City Real Estate

If there is one thing that everyone needs to be aware of it is mortgage fraud. And the problem has been so prevalent in Kansas City that the FBI stated that we, yes we, were one of the worst cities in America for this kind of felony. If you have been watching the news recently you would have seen that even mayoral candidates and a sitting city councilwoman have been indicted on mortgage fraud counts.

The Kansas City Star http://www.kansascity.com/mld/kansascity/business/16503526.htm has a different story almost daily on different real estate fraud schemes that affect everyone in town through higher mortgage rates, taxes for law enforcement, etc. Fortunately through stories like these the problem is becoming more and more well known and real estate professionals are beginning to take action.

Some of the better known ways to commit mortgage fraud are;

• misstating income on mortgage application
• appraisal coming in higher than is realistic (especially with refinances)
• non-approved and/or non-disclosed seller incentives to aid buyer
• undisclosed “forgivable” second mortgages
• inflation of purchase price to allow for “built-in” down payment
• a mortgage broker turning in to the end lender incomplete files or files with additional documents not available to everyone

Sadly, I could go on and on with different scenarios in which you can commit this crime. There is a perception that no one gets hurt. But with skyrocketing foreclosure rates which can lead to decreasing neighborhood values, I think you will see that it touches everyone.

And excellent blog read from a Michigan real estate agent can be found at http://activerain.com/blogsview/38652/UnMasking-the-Face-of showing how each and every one of us needs to be cognizant to this crime and do what we can to prevent it.

Your comments and opinions on this are welcome. Especially if you have war stories of your own. Maybe some time, with permission, I will share a few of the horror stories my clients have been through.

http://www.listwithchris.net/

I’m spending the night down here at Children’s Mercy Hospital in Kansas City because my daughter has had major surgery. (She is okay and it will really improve her quality of life.) And as I drive around the Crossroads area I see building after building converting to Loft Condominiums. Let me just say that I am a huge fan of lofts and if I wasn’t raising four children and in need of first class schools I would love to be in the urban environment that Lofts are located in. There is just nothing like it.

My wife and I lived in a high rise in Bethesda, Maryland for a while back outside of DC and we loved it. Of course, it was before kids. We would both come home from work, change clothes and go eat at any one of the dozens and dozens of restaurants within walking distance in an area known as the “Triangle”. Boy! do I miss that. But time moves on and responsibilities change. Maybe when we are older and our children have kids of their own we’ll be able to return to that environment.

Having said all of that I’m a little worried that there might be too much converting to lofts downtown. I would be a little leary investing in these particular condos for fear of an overbuild. If you are planning to hold eight or more years I’m sure you would do well. Anything less than that and I’ld be a bit worried. At least until more jobs start moving in downtown.

I hope the building proceeds at a measured pace. The renaissance downtown is good for all the Kansas City area. Olathe, Grain Valley, St. Joseph. It helps all of us to have a place to go, a place to brag about and a place to show our relatives and friends when they come for a visit.