Homeowners Lure Free Labor With Libations

Media rooms, arcade games, full gyms making downstairs space not so musty

(NEWSER) - Basements are no longer the lowly underbelly of the high-end home. With the rise of home-theater technology, and widespread community opposition to mansion expansion, wealthy homeowners are increasingly turning basements into underground playgrounds, Portfolio reports, featuring everything from faux-'50s diners to recording studios to saunas. “Whether you have a $2 million house or a $20 million house, finished basements are important," one broker says. More»

Few are above making a fib or two part of the sales pitch

(NEWSER) - When a homeowner is desperate to sell and a buyer is ready to fork over the cash, the truth about a house is often swept under the rug, MSNBC reports. Watch out for frequent fibs when talking about:

1. Personality of neighbors and the neighborhood.
2. Status of home repairs (particularly the roof).
3. Insect and rodent infestations.
4. Elevated radon levels.

'Equity strippers' deceive borrowers behind on their mortgage payments

(NEWSER) - A new form of fraud is thriving in the declining housing market, targeting desperate homeowners who are late on their mortgage payments. Known as equity strippers, companies cold-call burdened borrowers, promising a reprieve from their financial woes. In the end, they profit, and the owners end up losing their home anyway, reports the New York Times. More»

49 states sign on to deal with nation's top 5 banks

(NEWSER) - America's five biggest banks have hammered out a $26 billion settlement for their role in causing the mortgage meltdown, reports the Wall Street Journal . The deal—the biggest of its kind since 1998's $206 billion settlement with the tobacco industry—was hammered out during almost a year of negotiations between the banks and all 50 state attorneys general, reports the New York Times . The money will go to some 2 million homeowners affected by the crisis. More»

Has financial stake in limiting refinancing for struggling people

(NEWSER) - Freddie Mac was designed to help homeowners—but in 2010 and 2011 it wagered billions against them. The company invested in security packages that meant more cash for Freddie when homeowners couldn't refinance their mortgages. But Freddie itself regulates refinancing—and in fact has been increasingly denying refinances to struggling homeowners—prompting questions over a conflict of interest, reports NPR and ProPublica . "We were actually shocked they did this," says an exec at a firm that trades in mortgage-backed securities. "It seemed so out of line with their mission, out of line with what Congress wanted them to do." More»