tag:blogger.com,1999:blog-208482972024-03-07T00:24:54.040-06:00Closing Real Estate in ChicagoMaking money and getting your deals closed the right way in the Second City and beyond...Peterhttp://www.blogger.com/profile/06462128264467999870noreply@blogger.comBlogger474125tag:blogger.com,1999:blog-20848297.post-61316689604498803302009-03-13T10:57:00.004-05:002009-03-13T12:29:32.790-05:00Goodbye/HelloThis wasn't quite the celebratory transition I had in mind but life events have simply made it necessary so here goes...<br /><br />2-3 months ago now I finally got around to moving this <a href="http://closingonrealestate.blogspot.com/">blog's</a> content to its <a href="http://closingchicagorealestate.com/">own Website</a> using <a href="http://wordpress.org/">Wordpress</a>. That's what all the blog consultants out there say to get your own site so people like Google can't just shut you down (i.e. Google owns Blogger). And for a couple months I was just posting in both places with the intent of making a big, sexy announcement about the move once the "new" site was up to speed. Well, the new site isn't quite where I want it yet but just because I'm falling behind with the double posting and don't want you to think I'm just stale. Here's the BIG, SEXY ANNOUNCEMENT:<br /><br /><span style="font-size:130%;"><span style="font-weight: bold;">COME JOIN (AND UPDATE YOUR RSS READERS AND LINKS) THE NEW, IMPROVED FUN OVER AT:<br /><br /></span></span><div style="text-align: center;"><span style="font-size:180%;"><a style="font-weight: bold;" href="http://closingchicagorealestate.com/">CLOSINGCHICAGOREALESTATE.COM</a></span></div>Peterhttp://www.blogger.com/profile/06462128264467999870noreply@blogger.com10tag:blogger.com,1999:blog-20848297.post-72523615188994009742009-02-10T20:44:00.002-06:002009-02-10T20:59:50.661-06:00Divorce the House Before the SpouseNot necessarily my view but some interesting thoughts put forth <a href="http://archives.chicagotribune.com/2009/jan/09/realestate/chi-divorce-real-estate_chomes_0jan09">here</a>. Some bits from the article:<br /><br /><span style="font-style: italic;">“If you’re still linked through the house, than you’re not really divorced,” says Kelly Lise Murray, a Harvard-trained lawyer and Nashville real estate agent... </span><br /><br /><span style="font-style: italic;"> But Murray, who describes herself as a “divorce real estate advocate,” says people tend to underestimate the “ghosts” that go along with keeping the house. The place is often so filled with memories, both good and bad, she says, that “it’s not the family home anymore. It’s a huge lodestone...”</span><br /><br /><span style="font-style: italic;">Then there’s the even bigger issue of hidden debt. Ideally there will have been no secrets between the husband and wife. But money is a major cause of divorce, and in many cases, one spouse has no clue that the other one has rung up big bills that have become undisclosed liens against the property...</span><br /><br />I think the premise above contains two particular advantages.<br /><br />First, the divorce case is quickened and potentially "cleaner." I can't tell ya how many cases I have now that are just sort of lagging because of an inability to sell real estate...nothing too much happening but no final closure either. Of course no one can control market conditions.<br /><br />Second, there's way too much guesswork in setting some value on a marital residence at some time fairly arbitrarily plus there's a lot of unknown and moving factors that have to happen for the typical refinance with buyout or sell in the future and distribute proceeds in some pre-set manner...now that's messy!Peterhttp://www.blogger.com/profile/06462128264467999870noreply@blogger.com9tag:blogger.com,1999:blog-20848297.post-6909883380232572492009-02-10T20:21:00.000-06:002009-02-10T20:22:54.370-06:00No Earnest Money: You Can’t Be Serious<p>Oh, but I am.</p> <p>Here’s <a href="http://en.wikipedia.org/wiki/Main_Page" target="_blank">Wikipedia’s</a> definition:</p> <p><em>An <strong>earnest payment</strong> (sometimes called <strong>earnest money</strong> or simply <strong>earnest</strong>, or alternatively a <strong>good-faith deposit</strong>) is a deposit towards the purchase of <a title="Real estate" href="http://en.wikipedia.org/wiki/Real_estate">real estate</a> or publicly tendered government contract made by a buyer or registered contractor to demonstrate that he/she is serious (earnest) about wanting to complete the purchase. When a buyer makes an offer to buy residential real estate, he/she generally signs a contract and pays a sum acceptable to the seller by way of earnest money. The amount varies enormously, depending upon local custom and the state of the local market at the time of contract negotiations.</em></p> <p>I’ve been working with a long term client regarding sale of real estate over the last months. And won’t go in to many details here but there was a shocker regarding a recent offer and contract (where eventually the buyer’s backed-out of the deal) where the listing real estate agent didn’t require nor take any earnest money from these buyers when they made their offer and subsequently backed-out. <strong></strong></p> <p><strong>UNBELIEVABLE!</strong></p> <p>And in the end the result may have been the same but it sure would have been nice if the potential buyer’s had a little skin the game…ya know, I think it’s called leverage.</p>Peterhttp://www.blogger.com/profile/06462128264467999870noreply@blogger.com5tag:blogger.com,1999:blog-20848297.post-55637168180645310172008-12-20T14:06:00.002-06:002008-12-20T14:14:59.582-06:00An Interesting Retort From a CommenterThought I'd post a nice comment in full from <a href="http://chicagorealestatelocal.blogspot.com/">local blogger</a> and <a href="http://www.rubloff.com/our_agents/info/eric_rojas">Realtor Eric Rojas</a>. Like I tell my wife, disagreement is good, it provides more ideas rather than just agreeing with one idea...<br /><br /><br /><span style="font-style: italic;">I might disagree with your "waiting game". There is no guarantee the right deal will be there for you later. I personally have offered on a foreclosure (lost in a multiple offer) and have won a multiple offer short sale for my clients on another place this month. </span><br /><span style="font-style: italic;">Meaning, many preceived the prices as agood deal and jumped. This is still very rare, even in our worst months here after Red October.</span><br /><br /><span style="font-style: italic;">You did acknowledge people could jump if it's a steal. But finding the combo of good location, good building, good price is still tough... especially if you don't write and offer.</span><br /><br /><span style="font-style: italic;">I know of sales happening now that are $50K less (give or take) than previous sales on units for sale simply because the buyer wrote an offer (did not have to wait and compete when the price finally would be lowered).</span><br /><br /><span style="font-style: italic;">Anyway, I'm biased here, but also put my own money where my mouth is. Making an arbitray decison when it's better to buy based on the current market is like trying to time any market. I think if a home is what you want and you have a good understanding of the location... and you can afford it... take a shot.</span><br /><br /><span style="font-style: italic;">If you were in the market today (say renting and needed a place for your growing family) you'd wait another 6 months even though a great house becomes availble?</span>Peterhttp://www.blogger.com/profile/06462128264467999870noreply@blogger.com1tag:blogger.com,1999:blog-20848297.post-53737410227352408252008-12-20T13:18:00.002-06:002008-12-20T13:29:18.957-06:00Ethanol Subsidies and No-Money-Down Mortgages?Who would have known? <a href="http://online.wsj.com/article_email/SB122937640286608173-lMyQjAxMDI4MjE5NjMxNzY2Wj.html">I saw this piece in the WSJ</a> describing a mortgage program buried within the Department of Agriculture.<br /><br /><span style="font-style: italic;">To be eligible for a USDA-backed loan, a borrower can't have income that exceeds 115% of the median county income, and the loans are restricted to areas with lower population density -- generally towns of no more than 25,000 residents. So while home buyers in big cities aren't eligible for the loans, residents of many of America's fastest-growing towns and exurbs do qualify. The loans that come through the program are made by private lenders, then insured by the government and sold to Ginnie Mae, a federal agency that sells mortgages to investors.</span><br /><br /><a href="http://www.rurdev.usda.gov/rhs/sfh/brief_rhguar.htm">Here's an overview from USDA</a>. Likely not eligible in Cook but maybe in a collar of a collar county.Peterhttp://www.blogger.com/profile/06462128264467999870noreply@blogger.com0tag:blogger.com,1999:blog-20848297.post-25012059810436452812008-12-20T12:57:00.002-06:002008-12-20T13:00:27.143-06:00New Tax Breaks for Homeowners<a href="http://www.kiplinger.com/columns/taxtips/archive/2008/tax1214.html">A nice little reminder/overview from Kiplinger's</a> regarding end of year tax planning for homeowners.<br /><br /><span style="font-weight: bold;">Notably, the new up to $7,500 tax credit for new homes brought from April 9, 2008, through June 30, 2009 and the Private Mortgage Insurance deduction for homes bought since 1/1/07.</span>Peterhttp://www.blogger.com/profile/06462128264467999870noreply@blogger.com2tag:blogger.com,1999:blog-20848297.post-41400235630570855572008-12-20T12:01:00.002-06:002008-12-20T12:10:28.165-06:00A Second Wave of Mortgage Disaster<embed src="http://www.cbs.com/thunder/swf/rcpHolderCbs-prod.swf" width="370" height="361" allowfullscreen="true" flashvars="link=http://www.cbsnews.com/video/watch/?id=4668112n&releaseURL=http://release.theplatform.com/content.select?pid=lvcPsss8fnvTY8_MVcsaoZmWOKsutcDq&partner=newsembed&autoPlayVid=false&prevImg=http://thumbnails.cbsig.net/CBS_Production_News/920/625/60_themarket_1214_480x360.jpg" type="application/x-shockwave-flash" pluginspage="http://www.macromedia.com/go/getflashplayer"></embed><br /><br /><br />I saw the above on <a href="http://www.cbsnews.com/sections/60minutes/main3415.shtml">60 Minutes</a> last week...not exactly a cheery prognosis for the holiday season. <a href="http://www.cbsnews.com/stories/2008/12/12/60minutes/main4666112.shtml">Here's the full text of the story</a>. Obviously just one person's quote, but still...<br /><br /><span style="font-style: italic;">"We had the greatest asset bubble in history and now that bubble is bursting. The single biggest piece of the bubble is the U.S. mortgage market and <span style="font-weight: bold;">we're probably about halfway through the unwinding and bursting of the bubble</span>," Tilson explains. "It may seem like all the carnage out there, we must be almost finished. But there's still a lot of pain to come in terms of write-downs and losses that have yet to be recognized." </span>Peterhttp://www.blogger.com/profile/06462128264467999870noreply@blogger.com0tag:blogger.com,1999:blog-20848297.post-84899279871973669432008-12-10T13:21:00.003-06:002008-12-10T13:35:37.742-06:00It May Be Time to Think About Buying a House<a href="http://www.nytimes.com/2008/12/06/business/yourmoney/06money.html?em=&pagewanted=all">I saw the piece over the weekend in the NYTimes</a> but hadn't gotten around to reading it until today. It's been their most read article for nearly a week now so I thought I'd give it a skim. An important and true opening 'graph:<br /><br /><span style="font-style: italic;">Five or 10 years from now, when the financial crisis has ended and housing prices are up smartly once more, we will look in the rearview mirror and realize that we missed a golden age for first-time home buyers.</span><br /><br />But when is the right time? At least around Chicagoland, unless you can get a steal, I'd wait 6 months before buying anything. My view is that surely until the new administration comes into office things will remain dour. Then, I'm expecting Obama to make a big economic push right away but it will still take 2-4 months from legislative passage until that stimulus gets into the real economy. With greater confidence, I don't think you lose much by waiting until spring 2010.<br /><br /><span style="font-style: italic;">As is always the case with real estate, much depends on locati</span><span style="margin: -20px 0pt 0pt -20px; background: transparent url(http://graphics8.nytimes.com/images/global/word_reference/ref_bubble.png) repeat scroll 0% 0%; position: absolute; -moz-background-clip: -moz-initial; -moz-background-origin: -moz-initial; -moz-background-inline-policy: -moz-initial; width: 25px; height: 29px; cursor: pointer; font-style: italic;" title="Lookup Word" id="nytd_selection_button" class="nytd_selection_button"></span><span style="font-style: italic;">on. One study, “</span><a style="font-style: italic;" href="http://www.cepr.net/documents/publications/Changing_Prospects_for_Building_Home_Equity_2008_10.pdf">The Changing Prospects for Building Home Equity</a><span style="font-style: italic;">,” tries to predict where today’s first-time buyers in the 100 biggest metropolitan areas may actually have </span><span style="font-style: italic;" class="italic">less</span><span style="font-style: italic;"> home equity by 2012 as a result of continued price declines. </span><br /><br /><span style="font-weight: bold;">How should you proceed if you're planning to buy a home in the next 1-2 years?</span><br /><p style="font-style: italic;">Still, for anyone feeling the urge to buy, a number of practical considerations have changed in the last year or two. The basics are back, like spending no more than 28 percent of your pretax income on mortgage payments, taxes and insurance. Even if a lender does not hold you to this when you go in for preapproval, you should hold yourself to it.</p><p style="font-style: italic;">You will also want to start now on any project to improve your credit score because it may take several months to get it above the 720 level that qualifies you for many of the best mortgage rates. </p><p style="font-style: italic;">John Ulzheimer, president of consumer education for <a href="http://www.credit.com/about_us/">credit.com</a>, a consumer credit information and application site, suggests starting to pay down and put away credit cards months before you apply for a loan. That is because the credit scoring system could penalize you if you use a lot of credit each month, even if you always pay in full. Also, check your three credit reports (it’s free) at <a href="http://annualcreditreport.com/cra/index.jsp">annualcreditreport.com</a> and dispute errors. </p><span style="font-style: italic;">While no one can easily predict the likelihood of losing a job, Friday’s startling unemployment figures suggest the need for caution if you think you might be vulnerable. </span><br /><br /><span style="font-weight: bold;">Remember the tax credit and it's expiration date.</span><br /><br /><span style="font-style: italic;">Also, if you wait after June 30, you will miss out on a $7,500</span><a style="font-style: italic;" href="http://irs.gov/newsroom/article/0,,id=186831,00.html"> federal tax credit</a><span style="font-style: italic;"> for income-eligible first-time home buyers that works like an interest-free loan.</span>Peterhttp://www.blogger.com/profile/06462128264467999870noreply@blogger.com5tag:blogger.com,1999:blog-20848297.post-33597849577819553492008-12-04T16:34:00.002-06:002008-12-04T16:40:22.144-06:00Mortgage Fraud Incidents up 45% Year-to-Year: We're #3!Saw this reported <a href="http://www.chicagotribune.com/business/sns-ap-mortgage-fraud,0,5711035.story">here</a>. Some snippets from the piece:<br /><br /><span style="font-style: italic;">Reported incidents of mortgage fraud grew by 45 percent in the second quarter compared to the year-ago period, as borrowers misstated their financial information to maneuver around tighter lending standards, industry data released Tuesday showed.</span><br /><br /><span style="font-style: italic;">Florida properties led the way with about one-fifth of mortgage fraud incidents reported in the second quarter, the Mortgage Asset Research Institute reported. California was second, and Illinois third, the data showed...<br /><br />The largest increase in mortgage fraud in the first half of this year involved borrowers misstating their financial profile, which is not surprising as borrowers try to get around stricter lending guidelines, the report said.</span><br /><br /> <!-- END rail --><span style="font-style: italic;"> Some basic examples of fraud included false bank statements made on computers and pay stubs with white correction liquid on them, said Jennifer Butts, the institute's director of operations.</span><span style="font-style: italic;"><br /><br /></span>See it's not all the big, bad lenders. Now that the election's over perhaps some acknowledgment of fault on the part of buyer's signing these mortgages is at hand.Peterhttp://www.blogger.com/profile/06462128264467999870noreply@blogger.com0tag:blogger.com,1999:blog-20848297.post-62236451352533967272008-12-04T16:31:00.001-06:002008-12-04T16:31:49.775-06:00That’s the Problem, there was NO CANCER CLAUSE!<p><a href="http://www.chicagotribune.com/news/columnists/chi-tue_problem_02dec02,0,7389823.column">Saw this in a recent What’s Your Problem? column in the Trib.</a> regarding a builder’s failure to return an elderly couple's earnest money deposit. A sad tale, the husband got cancer and subsequently died and thus the couple didn’t want to purchase the home. The potential buyer’s relied on the developer’s oral promise that they’d refund the earnest money if the gentleman got cancer. I read that in the end they did get 3/4 of the deposit back.</p> <p>But really, would you expect a developer to honor an oral promise regarding an earnest money refund? Get it in writing!</p>Peterhttp://www.blogger.com/profile/06462128264467999870noreply@blogger.com0tag:blogger.com,1999:blog-20848297.post-68453618165786122572008-12-03T17:27:00.001-06:002008-12-03T17:32:16.001-06:00Choosing a Real Estate AttorneyNice video over on <a href="http://www.youtube.com/">YouTube</a> from a local practitioner I know well. Who'd have thunk it. I've had like 3 deals with this guy, good lawyer for your smallish condo development projects. Never knew he was high-tech. I don't think his firm even has a Website.<br /><br /><br /><object width="425" height="344"><param name="movie" value="http://www.youtube.com/v/44_MyrFmniA&hl=en&fs=1"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed src="http://www.youtube.com/v/44_MyrFmniA&hl=en&fs=1" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="425" height="344"></embed></object>Peterhttp://www.blogger.com/profile/06462128264467999870noreply@blogger.com1tag:blogger.com,1999:blog-20848297.post-52950388907045273422008-11-28T17:58:00.001-06:002008-11-28T18:00:49.555-06:00Guide for Single Woman Buyers<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://media1.suntimes.com/multimedia/digest16color_srch_feed_20081114_14_46_00_112-400-266.imageContent"><img style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer; width: 165px; height: 246px;" src="http://media1.suntimes.com/multimedia/digest16color_srch_feed_20081114_14_46_00_112-400-266.imageContent" alt="" border="0" /></a><br /><a href="http://searchchicago.suntimes.com/homes/news/1280131,HOS-News-digest16.article">Saw a review of the above in the Sun-Times</a>.Peterhttp://www.blogger.com/profile/06462128264467999870noreply@blogger.com0tag:blogger.com,1999:blog-20848297.post-29650114996555190312008-11-28T13:41:00.002-06:002008-11-28T13:44:05.103-06:00Developers Using Auctions to Sell Inventory<a href="http://www.nytimes.com/2008/11/28/greathomesanddestinations/28auctions.html?emc=eta1&pagewanted=all">Thought this was an interesting overview</a> reporting from a Florida real estate auction done to sell a developer's condos. I used to think of this as limited to the foreclosure scene but not anymore. We have a client who's going to do one of these shortly so I'm very interested and will be reporting more in the near future.<br /><br />As long as you can set a minimum bid, what's to lose?Peterhttp://www.blogger.com/profile/06462128264467999870noreply@blogger.com0tag:blogger.com,1999:blog-20848297.post-10082839429446691352008-11-28T13:19:00.002-06:002008-11-28T13:34:16.227-06:00Questions to ask Prospective Agent?<a href="http://www.chicagotribune.com/classified/realestate/advice/chi-choose-realtor_chomes_1128nov28,0,2543437.story">Here's the story</a> and the list from the <a href="http://www.chicagotribune.com/">Tribune's</a> piece:<br /><br /><br /><span style="font-style: italic;"> •How long have you worked in real estate, and how long have you been licensed?<br /><br /></span><br /><!-- google ads --><span style="font-style: italic;"> •Are you a Realtor? What professional designations do you have, and what special skills do they certify?<br /><br /></span><br /><span style="font-style: italic;"> •Do you work alone, or do you have an assistant or support staff?<br /><br /></span><br /><span style="font-style: italic;">•How often will we be in touch during the searching and buying process?<br /><br /></span><br /><span style="font-style: italic;">• Can I look at homes without you?</span><br /><br /><br /><span style="font-style: italic;"> •What makes you stand out among your peers, and do you have references from clients?<br /><br /></span><br /><span style="font-style: italic;"> •Will you act as a buyer-broker, or do you represent the seller?<br /><br /></span><br /><span style="font-style: italic;"> •How will you get paid, and may I have that in writing?<br /><br /></span><br /><span style="font-style: italic;"> •How many other buyers are you representing?<br /><br /></span><br />A fair list I suppose. On the Listing side, I'd want to see a full marketing plan as to how he/she would be marketing your home...very specific: Internet, newspaper, signage, open houses, ect. Surely view other property's he/she has currently listed.<br /><br />On either side I'd want to know about community connections. When I think of an agent or two I work a lot with and think highly of, they are individuals who have a home in the community, perhaps have kids who've gone through or are in the schools, are involved in things like service organizations, Chambers of Commerce, ect.. I can think of a couple who are on the local school board.<br /><br />I'd say the "real estate" stuff is more of a minimum bar to get over and the non-real estate knowledge and networks are how to really find an excellent real estate professional.Peterhttp://www.blogger.com/profile/06462128264467999870noreply@blogger.com0tag:blogger.com,1999:blog-20848297.post-78695597580032184952008-11-19T13:56:00.002-06:002008-11-19T14:01:27.260-06:00Citibank follows JPMorgan Chase's Lead<a href="http://www.chicagotribune.com/business/chicago-big-banks-mortgages-nov11,0,5250204.story">Here's the recent piece about Citibank's plan</a> to impose a moratorium on most foreclosures as part of a series of initiatives aimed at helping at-risk borrowers remain in their homes. You'll recall <a href="http://closingonrealestate.blogspot.com/2008/11/jpmorgan-extends-olive-branch.html">we previously reported Chase's similar plan</a>. I'm not sure how much longer <a href="http://www.citigroup.com/citi/homepage/">Citibank's</a> going to be in business themselves.Peterhttp://www.blogger.com/profile/06462128264467999870noreply@blogger.com1tag:blogger.com,1999:blog-20848297.post-90506154697155696142008-11-11T09:59:00.002-06:002008-11-11T10:06:56.017-06:00Buffet Buying Bargins?<a href="http://www.chicagotribune.com/classified/realestate/chi-mary-umberger-1102nov02,0,3078165.column">Here's Mary Umberger's full column</a> recently about <a href="http://www.homeservices.com/">HomeServices of America's (HSA)</a> plan to expand its real estate business during the economic downturn. HSA is part of Buffet's <a href="http://www.berkshirehathaway.com/">Berkshire Hathaway Corp</a>. Some excerpts:<br /><br /><span style="font-style: italic;">HSA apparently thinks the current sag in housing makes this the ideal time to spend some money, and has set aside a minimum of $200 million to expand its existing brokerages and to buy distressed realty companies at bargain prices, according to its chief executive, who told me the Minneapolis-based company is eyeing Chicago.</span><br /><br /><span style="font-style: italic;">"Our goal is to be in the top 60 to 65 markets," said CEO Ronald J. Peltier. "Chicago is one of them, and we definitely will be there. We're positive that timing and opportunity will converge in the not-too-distant future."</span><br /><br />What's your plan as the economy sours? I think it may be time for this author to launch his long-planned brokerage business.Peterhttp://www.blogger.com/profile/06462128264467999870noreply@blogger.com1tag:blogger.com,1999:blog-20848297.post-7648877050013800072008-11-07T17:59:00.002-06:002008-11-07T18:11:26.172-06:00The Difference Between Real and Personal Property<a href="http://www.chicagotribune.com/classified/realestate/chi-personal-property_chomes_110nov07,0,1834191.story">That's the topic of Lew Sichelman's piece this week</a>. But the real question is what's the difference between personal property and a fixture, Lew. And I think a thorough lawyer in a residential real estate transaction spends a good amount of time during his initial contract review with a client discussing fixture/personal property issues. You might say this "crap" is too small to bother with but the way I look at it is one item like a refrigerator or AC unit or something protected or gotten due to good lawyering just about pays your $500-$600 attorney's fees.<br /><br />Here's my recent story involving a personal property dispute...<br /><br />The issue involved a backyard play-set which I think is a pretty gray area...it's not clearly personal property that a Seller can remove nor a fixture that must stay with the home. In my case I had the Sellers and I recall asking about how it was attached to the ground and was there a concrete foundation in the ground. Well, I think in my transaction the Buyer's attorney was sort of asleep at the wheel. So during the time between contract acceptance and closing I shot a letter off to the Buyer's attorney asking if his clients wanted to buy this playground set or Sellers were going to sell it to someone else, in other words assuming this was personal property and my clients will take it if Buyer's don't buy it separately. If Buyer's lawyer had really analyzed the situation it may actually have been a fixture but I'll pat myself on the back and suggest my great lawyering got another check for $400 or so at closing to my clients.<br /><br />Be on top of this stuff...it seems small but it can make you look good if you're thorough!Peterhttp://www.blogger.com/profile/06462128264467999870noreply@blogger.com0tag:blogger.com,1999:blog-20848297.post-30525349614577559152008-11-07T16:39:00.002-06:002008-11-07T16:43:09.207-06:00Face Tough Times, Don't Ignore your Mortgage Problems<a href="http://www.chicagotribune.com/business/chi-housing-mortgage-advice-nov4,0,2832311.story">Here's a nice recent overview from the Trib.</a> of many of the "help" programs out there for homeowners...<br /><br /><b style="font-style: italic;">Hope for Homeowners</b><br /><br />Designed for borrowers who are under water with their mortgage but can afford a new one insured by the Federal Housing Administration, the new program will insure up to $300 billion of refinanced, troubled mortgages into 30-year, fixed-rate loans.<br /><br /> A new mortgage cannot be more than 90 percent of a home's new appraised value, meaning lenders must agree to write down a portion of the loan and the new mortgage amount can't exceed $550,440.<br /><br />The catch? Lender participation is totally voluntary. The other potential hitch is that if the loan in question carried a piggyback loan, any subordinate lender would have to agree to release their lien on the property.<br /><br />Call the existing lender or a new lender to see if you qualify. The program runs through Sept. 30, 2011.<br /><br /><b style="font-style: italic;">FHA Secure</b><br /><br />The year-old program offers FHA-insured mortgages to borrowers who are either current or delinquent on their non-FHA adjustable-rate mortgage. The loan-to-value ratio of the new loan depends on how many payments were missed so a gap loan may be necessary. Delinquencies must have occurred because of payment shock associated with an interest rate reset or the recasting of an Option ARM.<br /><br />If you don't currently qualify, stay tuned. The federal government is considering extending the end date of the program, now Dec. 31, and may also expand the program's eligibility to include borrowers with fixed-rate mortgages, Burns said.<br /><br />A list of approved FHA lenders is available at <a href="http://www.hud.gov/ll/code/llslcrit.cfm." target="new">www.hud.gov/ll/code/llslcrit.cfm.</a><br /><br /><b style="font-style: italic;">Hope Now</b><span style="font-style: italic;"> </span><br /><br />The national private partnership of housing counselors, mortgage servicers and investors was established to assist borrowers who are afraid to call their lender directly or don't know where to turn for assistance. Callers to the hotline, which operates 24 hours a day, seven days a week, receive help in contacting their mortgage servicer or an appropriate housing counselor. The phone number is 1-888-995-HOPE.<br /><br /><b style="font-style: italic;"> Illinois Statewide Foreclosure Prevention Network</b><br /><br />The state program offers counseling to families and works with lenders to refinance borrowers into 30-year, fixed-rate mortgages that carry interest rates of 5 to 8 percent, closing costs of less than $1,000 and no prepayment penalties.<br /><br />Typical participants have a credit score of at least 590 and while they have kept up with their payments, an interest-rate adjustment is, or would, make the mortgage unaffordable. For more information, call 1-877-793-3470.<br /><br /><b style="font-style: italic;">Local housing advocacy groups</b><br /><br />Many local groups work directly with lenders on behalf of troubled borrowers to modify the terms of mortgages.<br /><br />Another plus of contacting your local group: Some mortgage servicers and lenders have given counseling agencies a better set of phone numbers so it's easier to reach a decision-maker. Some agencies also operate their own aid programs, so it pays to ask. For instance, in July the Northwest Side Housing Center began piloting an effort to provide troubled borrowers with "gap" loans of up to $50,000 that cover the difference between a refinanced loan and the loan it is replacing.Peterhttp://www.blogger.com/profile/06462128264467999870noreply@blogger.com0tag:blogger.com,1999:blog-20848297.post-36531660739167107592008-11-05T13:17:00.003-06:002008-11-05T13:18:27.487-06:00Buy & Bail<a href="http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/08-25ml.doc">Note HUD's recent announcement</a> about the so-called buy and bail situation where you supposedly rent out your current home to get that income in order to buy a new home.Peterhttp://www.blogger.com/profile/06462128264467999870noreply@blogger.com0tag:blogger.com,1999:blog-20848297.post-55476994168686161512008-11-05T13:03:00.002-06:002008-11-05T13:04:48.568-06:00Massive Effort to Save Mortgages<a href="http://online.wsj.com/article_email/SB122549543952589677-lMyQjAxMDI4MjA1MTQwOTE1Wj.html">Here's a broad overview</a> regarding what all the big lenders are doing in terms of mortgage modifications from the <a href="http://online.wsj.com/public/us">WSJ</a>.Peterhttp://www.blogger.com/profile/06462128264467999870noreply@blogger.com0tag:blogger.com,1999:blog-20848297.post-86564331904391382162008-11-05T12:53:00.002-06:002008-11-05T13:01:30.172-06:00JPMorgan Extends an Olive BranchA couple key announcements from <a href="https://www.chase.com/">JP Morgan Chase</a> <a href="http://www.chicagotribune.com/business/chi-sat-brf1-jpmorgan-loans-nov01,0,984567.story">here</a> and <a href="http://www.chicagotribune.com/business/sns-bc-jpmorganchase-mortgages1stld-writethru,0,835351.story">here</a>.<br /><br />The first piece outlines Chase's plan to halt new foreclosure filings for the next 90 days or so. The second examines their plan to expand their mortgage-modification program. Some program specifics:<br /><br /><span style="font-style: italic;">In addition to Chase loans, the program will also be offered to customers with loans held by </span><a style="font-style: italic;" class="taxInlineTagLink" href="http://www.chicagotribune.com/topic/economy-business-finance/washington-mutual-inc.-ORCRP016518.topic" title="Washington Mutual Inc." id="ORCRP016518">Washington Mutual Inc.</a><span style="font-style: italic;"> and </span><a style="font-style: italic;" class="taxInlineTagLink" href="http://www.chicagotribune.com/topic/economy-business-finance/emc-corporation-ORCRP005078.topic" title="EMC Corporation" id="ORCRP005078">EMC</a><span style="font-style: italic;">. JPMorgan acquired Washington Mutual last month after the bank became the largest in the nation's history to fail. EMC was a mortgage unit of </span><a style="font-style: italic;" class="taxInlineTagLink" href="http://www.chicagotribune.com/topic/economy-business-finance/bears-stearns-cos.-ORCRP001751.topic" title="Bears Stearns Cos." id="ORCRP001751">Bear Stearns Cos.</a><span style="font-style: italic;">, which JPMorgan acquired in February...</span><br /><br /><span style="font-style: italic;">JPMorgan's enhanced program will include the opening of 24 regional counseling centers, the hiring of 300 additional loan counselors, new financing alternatives, reaching out to borrowers with pre-qualified modification terms and a new process to independently review each loan before it is moved into foreclosure.</span>Peterhttp://www.blogger.com/profile/06462128264467999870noreply@blogger.com0tag:blogger.com,1999:blog-20848297.post-50242272099843125402008-10-31T15:45:00.002-05:002008-10-31T16:02:48.486-05:00My Experience in the Cook County Treasurer's OfficeJust a brief follow-up from yesterday's <a href="http://closingonrealestate.blogspot.com/2008/10/opposite-of-making-bill-easy-to-pay.html#links">post</a>...<br /><br />So I took a little field trip today down to the <a href="http://www.cookcountytreasurer.com/default.aspx">Treasurer's Office</a> in the County Administration building at 118 N. Clark Street to get my client's duplicate tax bill copy (client is out-of-state). And I would honestly give the office high marks for customer service! They have several people ready to assist you even before you enter the office so that you're not having to waste time up at the counters filling out paperwork. There are also several service personnel circulating around the office...two cheers for Maria Pappas!! I'd be hard pressed to think of the last time I've experienced good customer service in Cook County or Illinois government (<a href="http://www.dot.state.il.us/i57/071603.html">except my dad</a> who used to be a great TV spokesman for IDOT during the 90s).<br /><br />That being said, what's up with the power trip over getting a copy of a tax bill?? Anyone, anywhere can view Cook County property tax bills and general property information over the Internet, yet they guard the release of duplicate tax bills copies like <a href="http://en.wikipedia.org/wiki/United_States_Bullion_Depository">Fort Knox</a>. Only the homeowner can get it unless you have a power of attorney (I have to pay them $1 for a duplicate due to their failure to send one to my client). I was fortunate to get a copy, I didn't have a POA but did have an Order appointing my client executor of the home owner's estate with me listed as the attorney of record.Peterhttp://www.blogger.com/profile/06462128264467999870noreply@blogger.com1tag:blogger.com,1999:blog-20848297.post-20971907398989924242008-10-30T17:16:00.002-05:002008-10-30T17:18:49.095-05:00Learn from a First Time Homeowner<a href="http://www.kiplinger.com/columns/starting/archive/2008/st1029.htm">7 tips from a first time homeowner (full article)...</a><br /><p style="font-style: italic;"><b>1. Owning a home is more than a mortgage.</b><br /></p><p style="font-style: italic;"><b>2. Always have cushion of cash for home repairs.</b><br /></p><p style="font-style: italic;"><b>3. You can save a lot of money as a do-it-yourselfer.</b><br /></p><p style="font-style: italic;"><b>4. But some jobs are worth hiring out -- if you can afford it.</b><br /></p><b style="font-style: italic;">5. Buy used.</b><span style="font-style: italic;"> </span><p style="font-style: italic;"><b>6. Having a yard is harder and more costly than you think.</b><br /></p><p style="font-style: italic;"><b>7. You must plan and prioritize.</b><br /></p>Peterhttp://www.blogger.com/profile/06462128264467999870noreply@blogger.com0tag:blogger.com,1999:blog-20848297.post-70264808810951233102008-10-30T16:02:00.002-05:002008-10-30T16:29:40.785-05:00The Opposite of Making a Bill Easy to PayI'm no <a href="http://en.wikipedia.org/wiki/Warren_Buffett">Warren Buffet</a> but I thought I heard somewhere that in business it's a good idea to try and make it as easy as possible for your customers or clients to pay your bills. I know we're always thinking about this issue with our monthly client statements whether it means accepting credit cards, sending statements via e-mail, allowing Internet bill pay, or just including a self-addressed stamped envelope so all a client has to do is write a check and drop it in the mail. You'd be amazed at what a difference just enclosing an envelope and $.42 stamp did for speed of client payments.<br /><br />And then there's the <a href="http://www.cookcountytreasurer.com/default.aspx">Cook County Treasurer's Office</a>...<br /><br />We represent the Estate of a gentleman who died within the last 6 months or so who owned a home in Cook County. There's upwards of $800,000 in this Estate working it's way through probate court and no surprise the home has yet to sell. And we need to pay the 2007 Second Installment tax bill. But for whatever reason my client, the executor of the Estate, who has had the decedent's mail forwarded to his house hasn't gotten the tax bill.<br /><br /><a href="http://www.cookcountytreasurer.com/payment.aspx?ntopicid=239">Well, the Treasurer will not let us pay the bill unless we have an original tax bill coupon included with the check</a>. They don't want our money! A check with a PIN and address and for the specific amount listed as due on the Website isn't enough...they want their coupons!<br /><br />So I'll be stopping by the Treasurer's Office tomorrow as part of my Daley Center morning and ordering a duplicate tax bill copy at the County Administration Building.<br /><br />Why is the coupon so important? Isn't it the tax revenue they're after?Peterhttp://www.blogger.com/profile/06462128264467999870noreply@blogger.com3tag:blogger.com,1999:blog-20848297.post-55118122908485866852008-10-27T13:31:00.002-05:002008-10-27T13:34:57.872-05:00Mary and MeI don't like <a href="http://www.zillow.com/">Zillow</a> nearly as much as <a href="http://www.chicagotribune.com/classified/realestate/chi-maryumberger,0,6642732,bio.columnist">Mary</a> but I too do enjoy finding creative Buyer's incentives like this one from Mary's Sunday column:<br /><br /><span style="font-style: italic;">The latest: The Brixton Group has partnered with designer Matt Lorenz, winner of Bravo TV's </span><a style="font-style: italic;" class="taxInlineTagLink" href="http://www.chicagotribune.com/topic/entertainment/television/top-design-ENTTV000000103.topic" title="Top Design" id="ENTTV000000103">"Top Design"</a><span style="font-style: italic;"> competition in 2007, to offer his services to buyers at its C/A 23 condo development at 23 N. Aberdeen St. Anyone who buys one of the building's 48 units through the end of January will get a $30,000 allowance that can be applied to the designer's fee and any furnishings the buyer chooses in consultation with him.</span>Peterhttp://www.blogger.com/profile/06462128264467999870noreply@blogger.com0