OMB Number 3235-0145 United States Securities and Exchange Commission Washington DC 20549 Schedule 13D/A Under the Securities and Exchange Act of 1934 Novastar Financial, Inc. Name of Issuer 8.90% Series C Cumulative Redeemable Preferred Stock Title of Class of Securities CUSIP Number 669947806 Barry Igdaloff PO Box 317 Blacklick, Ohio 43004, 614-939-0166 (Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications) June 30, 2011 Date of Event which Requires Filing of this Statement If this filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of 240.13d-1(e) (f) or (g), check the following box / /. Note: Scheduled filed in paper format shall include a signed original and five copies of the schedule including all exhibits. See 240.13D-7 for other parties to who copies are to be sent. *The remainder of this cover page shall be filled out for a reporting person's initial filing on this form with respect to the subject to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page. The information required on the remainder of this cover page shall not be deemed to be filed" for the purpose of Section 18 of the Securities Exchange Act of 1934 ("Act") or otherwise subject to the liabilities of that Section of the Act, but shall be subject to all other provisions of the Act (however see the Notes). 1 Name of Reporting Person Barry Igdaloff 2 If a member group a) / / b) / / 3 SEC Use only 4 Source of Funds PF 5 Check if Disclosure 6 Citizenship U.S.A. Number of Shares 7 Sole Voting 0 Beneficially Owned By Each 8 Shared Voting 0 Reporting Person With 9 Sole Dispositive 0 10 Shared Dispositive 0 11 Aggregate Amount Beneficially owned 0 12 Check if Aggregate Amount (11) Excludes Certain Shares 13 Percent of Class Represented by amount in row (11) 0 % 14 Type of Reporting Person IA There are no changes to the Schedule 13D, as amended except as set forth in this first amendment. Item 5. Interest in Securities of the Issuer The Reporting Party ceased to be a beneficial owner of more than 5 percent of Novastar 8.90 Series C cumulative Redeemable Preferred Stock as of June 30, 2011. The Reporting Party disposed of their entire 8.90% Series C Redeemable Preferred shares in exchange for common stock and cash in an Issuer Exchange Offer pursuant to Prospectus dated May 3, 2011. c) None Item 6. Contracts, Arrangements, Understandings or Relationships with Respect to Securities of the Issuer. There are no contracts, arrangements, understandings or relationships with respect to securities of the Issuer between the reporting party and any other individual or entity. Item 7. Material to be filed as exhibits. None Signature After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct. Date: July 5, 2011 /s/ Barry Igdaloff