Types Of Bankruptcy

Banks crack down on mortgage fraud (FT.com via Yahoo! News)   Banks are seeking to crack down on mortgage fraud as evidence mounts of a rise in the number of fraudulent borrowers. Abbey and Lloyds TSB are among the banks


Westwood residents to move to new facility  An employee with Nikkel and Associates electrical contractor, Ames, Iowa, cuts some more electrical conduit to complete a job at the new Westwood Nursing and Rehabilitation Center, 4201 Field Crest


D.C. Battling Boom in Illegal Work on Homes  The District's skyrocketing real estate prices have fueled an increase in illegal construction as property owners across the city are building and renovating homes without obtaining the required permits, ...via


It's Time to Prepare for Heading Back Home  It is that time of the year. Our seasonal resident friends and neighbors will soon be heading north and are thinking about what they need to do to close up


Wall Street Bond Firms Say Bernanke Will Be an Inflation Hawk at the Fed  Wall Street's biggest bond-trading firms say Ben Bernanke will be as zealous in fighting inflation as Alan Greenspan when he takes over as chairman of the Federal Reserve on Feb.read


Report: Existing home sales may fall to five-year low this year   Existing home sales probably will fall 11 percent this year to a five-year low, worse than previously forecast, and new-home sales will tumble to the lowest in a decade,

September 17th, 2007

NovaStar Financial cancels dividend, loses REIT status

In yet another sign of its growing inability to raise capital, Kansas City-based subprime mortgage lender NovaStar Financial said today that it would not declare a previously announced dividend.

As a result, the company will lose its status as a real estate investment trust, retroactive to Jan. 1, 2006, NovaStar said. The company said that it expected the 2006 tax consequences of its loss of REIT status to be offset by its estimated tax loss for 2007.

The termination of its REIT status will, however, have ‘a significant adverse impact’ on NovaStar’s financial statements for the third quarter of 2007, NovaStar added. The company said it was still in the process of determining its tax liability for the quarter. Read more



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