the wasserblawg

Dan Green , of Mobium Mortgage created this visual reference to explain what happened when mortgage lenders relaxed lending standards and then tightened them down borrowers began to default on too many loans. null

Now that the State legislature approved the Hamos bill (our mass transit bail out) all eyes turnb to the City Council who must now vote on the proposed transfer tax increase . As realtors and others in the industry wring their hands with worry about how the increased fee will effect the already slow market, it looks like our neighbor to the north in Evanston may well get into the act themselves. I'll explain in a minute, if you'lll indulge me this digression about my closing this morning. Most of the parties late to arrive, as they all had trouble finding nearby parking. One of the real estate agent proudly announced that she avoided that problem by riding the el. She proceeded to grimace, look the buyer in the face, and comment to the effect that at least she (the buyer) saved money by closing before the City raised the transfer tax. She proceeded to lambast the legislature for making her poor buyers bear the brunt of saving the transit workers pension funds. I, rather smugl...

Did you hear the news? Apparently oil prices have been rising, and gas for our cars is getting more expensive. Then there's also something or other about global climate change and carbon emissions and such. Oh, and the kids are all getting really, really fat. Obesity seems to create health problems and there is some crisis or other in the healthcare industry too. Wow, I though the real estate market slow down and mortgage lending crises were a mess. So much bad news. So, here is a neat tool that could help buyers, renters, and their agents identify properties in neighborhoods that are "walkable." Enter a street address into the system and walk score will show you a map of what's nearby and calculate a "Walk Score" rating of the relative "walkability" of the area for you. Its not perfect, but hey - its a (great) start and a really cool idea. Pick the right house - reduce your dependence on the car; get some exercise; support your local (mi...

I posted last week about concerns that arson claims will increase as borrowers fall behind on their mortgages. Looks like that they aren't the only scammers out there.... The FBI has announced that mortgage fraud investigations tripled during the last fiscal year compared to 2003. Conviction rates may not be holding pace (they doubled in 2007). Fear not, Financial crimes section cheif Sharon Ormsby predicts that the number will likely rise this year. The prime growth areas in this field? what else but sub-prime/distressed borrower situations and reverse mortgages held by senior citizens. Source: Donna Leinwand, USA Today (01/14/08)

Most loan officers I work with are nice people. They are hard working. They are well intentioned. They want to make loans for the buyers they work with. Turns out however, that many of them speak an entirely different sort of English than the rest of us. When your friendly loan officer assures that "your loan is approved," she does not necessarily mean that you are going to get your loan. "Approved" does not mean "Approved!" weird, huh? Most Buyers who hear this however are willing to take the Loan Officer at his work and they direct me to waive their mortgage financing contingencies. BAD MISTAKE . Two or three weeks later, when that same loan officer tells those same buyers that the underwriter denied their loans, it is too late. The protection of that contract provision is long gone and, in the worst of situations, so it that Buyer's earnest money and dream of buying that dream home. The loan officers, like D-Day in the 1978 Film Classic, Animal ...

Until this morning, few of us would have made a direct connection between the funding of public transportation in the metropolitan Chicago area and real estate conveyancing. But now the link has been established and it spells bad news for anyone wanting to buy or sell real estate in the City of Chicago. Buyers about to absorb the brunt of yet another closing cost increase; a possible (likely) 40% increase in the amount of the City of Chicago Real Property Transfer Tax. With just five days left until the 3rd public transit funding "doomsday" in the last six months, the cat has finally jumped out of the bag. This morning, we all woke to the news that the proposed transit "bail out" will be funded by a combination of local county sales tax increases, state general funds, and that transfer tax increase. Never mind that the transfer tax is levied by a completely different body of government - the City of Chicago and not the State. We must all prepare for the coming rea...

Here's more proof that I am a better lawyer than white collar criminal. If they would only use their higher level thinking for good and not evil.... The time honored tradition of burning one's note and mortgage AFTER the loan has been repaid seems to be falling victim to our short attention spans, need for immediate gratification, - and harder economic times. Seems that "with the national foreclosure rate zooming and the real estate market in a two-year funk, the insurance industry fears more homeowners will see arson as a way out of their financial woes. A recent report by the industry-funded Coalition Against Insurance Fraud notes that with "untold thousands of homeowners struggling with ballooning subprime mortgage payments, fraud fighters are watching closely for a spike in arsons by desperate homeowners who can no longer afford their home payments." more details in the CNN press release of the full report from Fortune Magazine Following the perverse logic ...