the wasserblawg

Matt Carter of Inman Real Estate News reports today that the bad news seems to be getting worse for home buyers; not only is getting harder to qualify for mortgage loan, the costs of those loans are going to rise next March . The cost of private mortgage insurance -- required by most lenders on loans with less than a 20 percent down payment -- is going up, even for borrowers with credit scores considered well above subprime. Government-chartered mortgage financers Fannie Mae and Freddie Mac have increased surcharges for borrowers with credit scores below 680, well above the 620 threshold sometimes used to define subprime borrowers, and will require down payments of at least 5 percent on all loans in "declining markets." New flow business pricing announced in November by Fannie and Freddie create new surcharges on most loans purchased after March 1 for borrowers with credit scores below 680. The surcharges range from 0.75 percent for borrowers with FICO scores between 660 a...

John Vogel, Jr . of Dartmouth's Tuck School of Business explains the sub-prime lending market and the roots of its collapse.

According to this morning's Belleville News-Democrat , Attorney General Lisa Madigan has launched an investigation into Countrywide's business practices. Other lenders may be next as the probe continues. The inquiry focuses on why people who appear to us to not be able to afford the loans they're in were able to get those loans and how Countrywide, the nations biggest mortgage lender may have contributed to that. The AG is looking at how loans were originated, funded and sold "all the way up the line." stay tuned for details!

For years, and with very few exceptions, home sellers in Chicago have had to prove at closing that their municipal water & sewer bills were paid in full. Naturally, the City of Chicago's Department of Water Management has charged a modest fee to produce the required certification. Effective December 17, 2007 , that fee will increase from $25 to $50. The new requirement will also apply to condominiums, a practice that was discontinued back in 2004, when the department was plagued by certain irregularities (scandals) and the volume of closings caused massive delays in getting such certifications processed. There has been very little publicity about this change so I expect that more than a few closings are going to be delayed or skewered as uninformed condo sellers and their lawyers scramble to obtain the necessary paperwork. Making things worse, I understand that there have been several recent departmental layoffs so do not be surprised when you re-acquaint yourself with those n...

We cyclists have long know the benefits of riding; its fun (!), healthy, environmentally friendly, and offers us a great way to experience the streets and neighborhoods we traverse. Boulder, Colorado real estate agent and triathlete Matt Kolb has taken cycling to a new level and created a new paradigm for his brokerage Pedal to Properties as his agents now offer clients the opportunity to tour homes via cruiser bikes! What an efficient and fun way to tour multiple homes in a given area and check out the neighborhood at the same time! Given that I am watching a freezing rain fall outside my window as I write this, it is a bit hard for me to imagine that anyone is going to bring this concept to Chicago any time soon, but come the spring, I cannot wait to see who is going to try this first!

SIEM REAP, Cambodia (AFP) — American golfer Bryan Saltus secured his maiden Asian Tour title at the Johnnie Walker Cambodian Open after a solid five-under-par 67 in the final round on Sunday. "This is awesome. I would like to dedicate this win to Grateful Dead as they have inspired me all the way. Siem Reap is right up my alley so I've enjoyed my time on and off the course this week," said Saltus, who is an avid Grateful Dead fan, having been to 153 concerts. full story

Chicago Tribune business section reporter Barbara Rose recently filed a story about a growing trend: businesses sending thanksgiving cards to customers in lieu of Christmas greetings. Not that I am any sort of trend setter, but I adopted this practice several years ago. Saying thank you to clients is only right, and it just makes the most sense to me to do it around a holiday specifically created for that purpose. Getting my cards out before the onslaught from my colleagues and vendors? So much the better. Ms Rose's article, quoting yours truly , available here. A for the record, no, I am pretty sure that I am not the "holiday creep" she references.

Lest anyone think i am mad for proposing a bike ride to take up ones idle time, waiting for the phone to ring with a new real estate matter,.... here's a video by bike winter commuter Steven Lane. i'm not (yet) this hard core, but here's to those Hart soles who are. more info? bikewinter!

Washington, D.C. real estate attorney Pamela Rothenberg hit the nail on the head in today's Legal Times . Real Estate is a cyclical market. There are booms and busts. Anyone who has practiced in this field long enough knows that the pendulum swings back and forth. Rothenberg describes the angst of the real estate attorney watching yet another tilt in the "wrong" direction. My job is to help my clients buy and sell. When they are frustrated in their pursuits, I am too. So, its pretty horrific having to watch owners who (sometimes desperately) want to sell, unable to find buyers willing or able to buy. Its sad to witness sellers pay money at a closing to make up the difference between what is gained at sale and what is owed to mortgage and lien holders. It is annoying to try to negotiate short sales with lenders (themselves desperate not to lose money in behalf of sellers who cannot sell for enough money to repay their loans in full, and it is no easier watching a willing ...

So, either hell has frozen, or I ran out of productive things to do and decided to experiment with the blogosphere. The premise here, frankly, is absurd: Lawyers with opinions? Who will share them, unsolicited, with the world at large? For free? Go figure. Professionaly, my universe is fairly well limited these days to helping buyers and sellers survive the bizzare ritual practice commonly known as the residential real estate transaction . At first blush, what could possibly be simpler - buyer and seller agree on a price; buyer gives seller money, seller gives buyer keys, fini! Sadly, the process has become much much more complicated. A sad, sad combination of lawyers, institutional investors; red tape; governmental regulation. Arrgh!!! Factor in the emotional and psychological overlays that crop up for many of us when we make these large dollar transactions (when else do most of us deal in these numbers except when we buy and sell our homes?) Its enough to scream, and all too often ...