the wasserblawg

While I may have my doubts about the proposed home buyer tax credit, I have no such doubt about Fannie Mae's latest pronouncement . On Friday, Fannie Mae announced that it is removing the "four property" cap it imposed on real estate investors last year and will now fund loans to " high-credit quality, bona fide investors " for the purchase of up to ten investment properties. The loan guidelines are reported as: 720 minimum credit score 75% maximum loan to value for purchases 70% maximum loan to value for refi's , including "cash-outs," to the limit ( ok , that assumes that you have that still much equity left in the property) Starting March 1, 2009 Ok , truth be told, the four building restriction was only announced last fall and went into effect in December, so it was only a thorn in our sides for what, five weeks? But it most certainly was a thorn in the side of many investors. Why did the government stick it? Lenders needed to try to stem...

Earlier this week, the U.S. Senate approved an amendment to the proposed economic stimulus plan that is of particular interest in the real estate community. The Liberman - Isakson Amendment , as proposed, would extend and broaden last years first time home buyers tax credit. (Keep in mind that the Senate has not yet voted on the bill; the House still has to agree, and the President must sign the law before it might take effect.) Here are the essential points as proposed: Home Buyers will receive a pure tax credit (a reduction of the taxes otherwise owed) The credit would be 10% of the purchase price , up to $15,000.00. Provided that the home purchased becomes the buyers primary residence, for at least two years You can only use the tax credit one time. If the home is purchased in the first year this law exists, you can elect to take the credit as if the house was purchased on December 31, 2008 (that is, the credit can be applied on 2008 returns . Or, if a home buyer prefers, the ...

I cannot imagine that this is going to be good news for anyone who is hoping to sell a home in 2009, but Matt Carter from Inman News reports today that the number of houses and condos on the market are about to swell dramatically as banks begin releasing foreclosed properties from their portfolios, at fire sale /clearance prices. As banks have been foreclosing on delinquent mortgages, the numbers of properties they are holding as " REO " (Real Estate Owned) assets is swelling. According to Carter, The value of REO property on the books of FDIC-insured banks at the end of the third quarter surged 21 percent from the previous quarter, to $23 billion. That total -- which includes single-family to four-family homes valued at $11.5 billion and another $1.5 billion in property purchased with FHA-backed loans securitized by Ginnie Mae -- represents a 134 percent increase from a year ago, according to the latest quarterly report from the Federal Deposit Insurance Corp. Reposs...

The Illinois Association of Realtors reported today that 2008 home sales in the Chicago PMSA were just 68,676, nearly 26% fewer sales than 2007. For those lucky enough to find a buyer, the median sale prices last year was 17.3% lower than 2007. The PMSA includes Chicago, suburban Cook, and the eight surrounding counties. There were 20,589 Chicago home sales in 2008, 25% fewer than in 2007. Well. on the bright side, however gloomy the current market conditions might seem, there are still buyers buying and sellers selling. Also, I am pleased to note that my "market share" of Chicago house and condo closings last year increased over 2007. Here's to doing even better in this new year.

By all outward appearances, state government in Illinois has ground to a complete halt, with all eyes focused on the Governor's "problem" and all the related fal - der -rah. Its hardly business as usual in Springfield, but not everything has ground to a halt. Several new bills have been introduced this week. That is not to say that they will be of benefit to we the people. Nonetheless, the cogs and gears are turning, and we are hoping for the best. One such proposal comes from Rep. LaShawn Ford of Chicago's west side, who is himself a real estate broker and entrepreneur . He is the author of House Bill 155 , introduced & referred to the Rules Committee Wednesday. It seeks to address one of the most common problems I am seeing in condominium resale transactions these days; the tension between many Declarations of Condominium and FHA loan guidelines. Many Condo Declarations provide Associations with a "right of first refusal," which basically allows t...

The Inman News Wire is almost always good for an interesting read or two (assuming of course you find the business of real estate news even remotely interesting) but I was particularly taken by Jack Guttenberg' s column today. The self-proclaimed "Mortgage Professor" has a very particular and analytical approach to mortgage financing. His web site is a GREAT jumping off point for anyone who wants to begin the process of understanding what, and where, to shop for a loan. The good doctor surveyed the current landscape for fixed rate, adjustable, and interest only loans, both jumbo and conventional in mid December. Specifically, he checked in with seven (un-named) internet based lenders and the four major "depository" lenders (i.e. chase, citi, boa and wells fargo). Read the whole article here for the details . Bottom line #1: Borrowers can save a ton of money by shopping loan providers. Bottom line #2: Buying down the interest rate is a very good investment.

Its not like anyone in the Real Estate market needs numbers to quantify the severity of the pain, but just the same, here Crib Chatter's is a quick, dirty summary of Illinois Association of Realtors' November sales reports: Chicago home sales continue to plunge, as November recorded the sharpest year-over-year decline in the city in 2008. Sales of single family homes and condominiums in the city fell 41.3% in November compared to a year ago. Only 1,057 sales closed compared with 1,801 in November 2007. The median price declined 23.3% to $222,500 compared to $290,000 in November 2007. “The REALTOR® Association is calling upon the federal government and mortgage industry to address continuing problems that are impeding the delivery of mortgage credit to potential homebuyers.” said David Hanna, president of the Chicago Association of REALTORS®. “Mortgage insurers need to make sure they have not over-corrected and added unnecessarily strict underwriting standards prev...