the wasserblawg

by  Michael H. Wasserman, Attorney at Law The Wall Street Journal reports that lenders are offering lower down-payment requirements to lure more borrowers wishing to purchase more expensive homes.  Many small lenders, (primarily community banks and credit unions), are now willing to cover jumbo loans with 5 percent to 10 percent down payments. In Chicago, jumbo loans are those that are $417,000 or higher.  These opportunities are being made possible by mortgage lenders wishing to increase market share as real estate property values are on the upswing coupled with the re-emergence of mortgage insurance companies will to insure against the risks of borrower defaults. 

by  Michael H. Wasserman, Attorney at Law Starting today,  Fannie Mae   homebuyers who plan to be owner-occupants get a 20 day “First Look” at foreclosed homes without competition from investors.  Freddie Mac  has been offering the 20 day first look since December 17th. The first look window for Chicago area properties had previously been 15 days, Homebuyers shopping for homes  can see which properties are restricted to First Look bidders in Fannie Mae’s “real estate owned” (REO) inventory at  HomePath.com  and for Freddie Mac REOs at  HomeSteps.com    Source:  fanniemae.com  and  freddiemac.com . - See more here.

by  Michael H. Wasserman, Attorney at Law The Mortgage Forgiveness Debt Relief Act expires Tuesday at midnight. Sadly and perhaps all to predictably, Congress has three bills pending that would extend tax relief for underwater home owners, but has not acted to move any of them forward for passage. As new years approaches, several buyer-clients and I find ourselves standing on the sidelines watching several short sales that were "all but" approved but have ground to a full stop over the last several weeks, for no apparent reason. Waiting to see what happens next, if / when the Sellers lenders approve any or all of these deals next year.  Will Seller's attorneys advise their clients of the tax liabilities their clients will now face? Will they kill deals outright Delay closings until (?) Congress acts? (Will Congress act to extend the tax relief law?), or, Will they sell their clients down the (tax liability) river to close contracts (and get paid)? More on ...

by  Michael H. Wasserman, Attorney at Law

by  Michael H. Wasserman, Attorney at Law Cook County property owners wee mailed last week. Better start asking around if you did not receive yours yet - those bills are all due by March 1st. If you know a property's PIN, you can look them up at the County Treasurer's web site.  If you do not know the PIN, you can look that  up at the Cook County Assessor's site . How to Hold  Your Cook County Tax  Bill QUICK TIPS FOR HOME BUYERS Home buyers especially for first time home buyers, should not panic after looking at a 1st installment tax bill. Sure it looks  like a 10%  increase over last year. Yes, the tax bill  may (probably will?) go up, but for now - it is just too soon to tell. First installment bills are estimates only . They are automatically set at 55% of the previous year's levy. County and Municipal taxing bodies still have to finalize their respective budget processes and the actual tax bills will not be computed or ...

Assessor's Web Site Screen Grab by  Michael H. Wasserman, Attorney at Law Whenever a client hires me in connection with a local real estate purchase or sale, one of the first things I do is check out the local county assessor’s web site. For Cook County transactions, that would be here . The property search function allows home buyers, owners, and the professionals that represent them, many data points that can be critical to their deals. I am on this site every day. What the Assessor’s Office Does The Assessor sets the valuations (worth) of each of Cook County’s 1.8 millions parcels of property. These assessments are then plugged into the mathematical formula used to calculate our annual property taxes. Your property’s assessed value, in part, determines how much you will pay in property taxes. Taxes are likewise impacted by the use (or failure to claim) any of several recognized tax “exemptions.” Why I Search A check in with the County Assessor helps me assure cli...

by  Michael H. Wasserman, Attorney at Law A must read from Broderick Perkins over at Realty Times for all home buyers who want to use mortgage financing. A shocking number of folks manage to sink their own ships by making one of these four mistakes along the way. Do Not make random, large, undocumented cash deposits, transfers, or withdrawels  - Your lender is going to see these on your bank statements and unless you can explain / prove where the money came from / is going, you are at risk Avoid Big Purchases -  Resist the temptation to buy a new car or furnishings for your new home until after  the closing. It will show up on your credit report, lower your score, and scare the bejeezus out of your lender. Pay your Bills -  Harken back on the advertising slogan - Just do it. Even if you want or need to dispute the charges with your creditor. Timing is everything and now is not the time to slip up. Credit scores man. They mark down for late payments....