Jack M. Guttentag, Professor of Finance Emeritus at the Wharton School of the University of Pennsylvania has composed an excellent series of articles on the Mortgage 101 website

Entitles “New mortgage underwriting rules will be tough to enforce”, Guttentag discusses the problems that regulators will have when trying to make sure that lenders comply with the intent of the Federal Reserve Board.

In writing, the Professor examines board proposals to curb lax underwriting rules, unfair practices by mortgage brokers, and abusive practices by loan servicing agents in respect to this salient statement

Underwriting requirements set by private markets tend to become increasingly liberal when house prices are rising. Rising prices convert bad loans into good ones — good, at least, from a lender perspective. If the borrower can’t make the payments, having equity in the property allows the borrower to refinance into a mortgage with lower payments, or to sell.

It is our opinion that this one series will do well to educate current and prospective mortgage holders as to the problems facing themselves and the mortgage industry.

search for : mortgage underwriting rules, lax underwriting rule, unfair practices by mortgage brokers, abusive practices by loan servicing agents

If you are thinking of selling then one hassle you don’t need is a last-minute renovation. With the housing market continuing to weaken, many sellers are going beyond the usual cleaning, painting and “staging” with flowers and pillows, by taking on big-ticket projects.

Real estate pundits warn that sellers are unlikely to get their money back from extensive renovations. But owners often feel they have no choice if they want to sell, especially when builders of newly constructed homes are throwing in hardwood floors, finished basements and other free upgrades.

According to Remodeling magazine’s annual Cost Versus Value Survey, the overall return for remodeling projects is on the decline, falling to an average of 70% in 2007 from 86.7% at the market peak in 2005. (more…)

It used to be, years back, that there were two types of real-estate agents: Those who listed homes and those folks who took buyers around to look at homes represented by a listing service (MLS). Both were necessary at that time. Because the Internet and online real-estate listings didn’t exist, the agents who showed homes to buyers generally spent a lot of money on gas and earned every penny of their commission.

With changes in technology, a new kind of agent has emerged. These agents are called “exclusive buyer agent,” and are responsible to the buyer alone. Although a full service agent could be employed as a buyer’s agent, some don’t list homes at all.

Some real estate pundits recommend that buyers seek out such agents, as they’ll not only keep your confidence, they’ll also drive you around, give you valuable insight into market conditions and negotiate hard on your behalf, without any possibility of a conflict of interest. (more…)

search for : real-estate agent, MLS, buyer’s agent

In this overly litigious society in which we live, manufacturers feel the need to paste a warning label on every available square inch of just about every tool we use. Because we are so inundated and overwhelmed with the stickers, we often don’t give the warnings much deserved attention.

Safety warnings are there for a reason. Some are generic in nature, yet some are specific to that particular tool. And, while many may seem like simple common sense, to ignore basic safety procedures is stupid, and dangerous in the extreme. So take a moment to review some of these common power tool safety precautions. Keep them in mind the next time you’re working with power tools. (more…)

Beautiful Wilkes County NC Log Home and Mountain Property.

MLS Number: 50863, List Price: $359,900

Bedrooms: 3, Full Baths: 2, Half Baths: 0, Est Total SqFt: 2600, Type/Style: Log Home, Area: Area 6, Middle School: Cntrl Wlks, High School: Wlks Cntrl, Construction: Log

Foundation: Combination, Roof: Metal Roof, Floors: Carpet/Hardwood/Tile, Garage/Carport: None-Garage, None-Carport, Interior Features: Master Bedroom, Main Level, Large Master Bedroom, Walk-In Closet(s), Hardwood Floors, Fireplace(s), Great Room, Exterior Features: Double Pane Windows, Wooded Lot, 1-5 Acres, Hot Tub, Subdivision: N/A, Lot Size: 2.47, Apx SqFt: 2600 - 2800 SF, Basement: None

Contact Elizabeth Carter, 336.973.5594 or Greg Stikeleather, Broker, 704.880.5247 or email eacarter@charter.net

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