Credit Card Curtail

Posted at 6:37 AM, May. 22, 2009

This is a step in the right direction.  Congress has now passed a bill that will prevent banks from arbitrarily raising interest rates on consumers. 

The new regulations would make it harder to get credit to those under the age 21 and banks would not be able to raise interest rates unless a consumer was no less than sixty days delinquent and to reinstate previous rates if the consumer has paid the minimum payment on time for at least six months following.

Banks on the other hand, argue that this is a tremendous blow to the economy for it will force them to raise the bar of interest rates to all credit card holders and to bring back annual fees.  The claim is it will make credit even harder to acquire. 

It's about time. 

Foiled Again!

Posted at 6:31 AM, May. 21, 2009

Of course it was too good to be true.  Apparently, despite the announcement issued from HUD on May 12, 2009. the incentive that would allow first-time home buyers to monetize the tax credit of $8,000 towards a down payment has been retracted. 

According to officials, the incentive resembles the now illegal seller assistance with down payments on FHA loans.  The IRS also has stated it's concerns on the implications to future tax returns.

We've been told there is efforts being put forth to come up with a solution that will shorten the gap in the bridge between buyers and loans.  Let's hope so.

You Can Now Get A Down Payment Via Tax Credit!!!!!

Posted at 7:47 AM, May. 15, 2009

This is HOT off the press, HUD just released a statement that reports that FHA is NOW going to allow the 2009 Tax Credit of $8,000 to be "monterized" at the closing table so that first time homebuyers can use it as part of their down payment!!!!!  This has been a continuous effort on the part of National Association of Realtors who have been pleading with goverment to make this a possibility and help get buyers into homes.  Read the story from the Association here.

The money is being borrowed (just like an advance on your paycheck) but it is still $8K you didn't have in the first place.  If buyers fail to pay it back from refunds at tax time (without interest) it will have be added to the current mortgage with interest. 

How buyers are going to go about this is, once they identify their property of purchase with contract, they need to contact their CPA to file a ammended tax return with a 5405 form who will then send it off to the IRS.  Once received, the money will be wired into a designated bank account within 7-12 business days and will be considered verifiable funds that all lenders will accept. 

So if you have been hesitating about buying, STOP!  It does NOT get any better than this.  Call your lender or your trusted Realtor today.

Are Realtors To Blame?

Posted at 5:24 AM, May. 15, 2009

Alright, I just can't help but get in on this debate.  I just received a video clip from FoxBusiness.com (via Coldwell Banker) regarding a recent interview with our chief CEO.  The main topic is, should real estate agents bare blame for the housing mess?  Well...

First and foremost I will answer the direct overall question that was unsaid.  Yes, there have been, currently are and will always be the few in the business that spoil the bunch.  We are held in contempt by the average consumer as being money hungry, immoral and down right shady.  This is not your average Realtor.  Like any profession, there are mostly good, and some, not so good.  The character of the person should be held in question, not the occupation.

Now to the direct question that was being asked, is it right for an agent to take a commission (the reporter stated 6%) representing the buyer for a property than turning around and getting a commission again for representing that past buyer (now current seller) in a short sale/foreclosure situation?  The question eludes that agents who have been involved (or as this report suggests, somewhat responsible for the seller being underwater) should try to sell that home for free.  I have to again ask, why is it that people become blinded when they think of commission as means of payment?  If I were a doctor, I could just bill you for the time spent with you regardless if I fixed your problem or not.  Same applies to an attorney.  You are billed whether you win or lose (so to speak).  So, should real estate agents just start billing flat fees for anytime spent on a property regardless of performance?  Do people forget that we can spend months on a property putting up our own hard earned dollars risking that the property might not sell and we too are out money?  We are not always rewarded for good works with payment.  In fact, every agent can recall how often they have lost money on dead listings and flaky buyers.

 Let us not forget the most important factor here, accountability.  NO ONE made the buyers buy.  That was a sole decision.  Were they advised to buy more than they should, possibly, but in the end, the bills were theirs and theirs alone.  If you can't make an adult decision and accept the consequences and responsibility that goes with that, well I'm sorry.  Enough of the finger-pointing and blame shifting.  We are  accountable for our own actions, regardless of the advise we heeded. 

In addition to that note, there is no one factor as to why a person loses their home.  It's not just because of adjusting mortgages.  In fact, the primary reasons people lose their home is due to job loss and/or medical debt/illness.  No super star Realtor is going to be able to tell if someone is bound to lose their job or go on sick leave in the future.  Nor should we be expected to.  We are not responsible for individuals saving or spending habits.   I can speak first hand.  My husband was just laid off from his job.  I could very well be facing losing my home even though we did not buy out of our financial capabilities or have an adjustable mortgage.  My income however, is unpredictable.  You can only prepare for so much.

 On a final note, FYI reporters, if the property is foreclosed on (or a short sale for that matter), the bank can influence and decide what commission will be paid out, not the seller.  Often than not, it is considerably less than the time, energy and frustration involved to get one of these deals to the closing table.  Let's grow up people and look forward to correcting the problem instead of figuring out who caused it.  The answer won't change anything nor will it necessarily make the public any wiser. 

Open House Tips For The Do-It-Yourself

Posted at 5:23 AM, May. 14, 2009

• Advertise your open house. Ideally you should advertise both the weekend before and the weekend of the open house. Check with the local paper to see when their ad closing deadlines are.

• Create a property summary sheet. This sheet gives prospective buyers an overview of your home. Include dimensions for each room, copies of a property survey, summaries of utility costs and property taxes, and a list of when capital items, such as roofs and furnace, were added.

• Develop a sign-in form for prospects’ addresses. You’ll ideally want both phone numbers and e-mail addresses to follow up with prospective buyers.

• Put up signs. One or two days before the open house, place directional signs at major intersections within three to four blocks of your house. Be sure you check on anti-sign regulations in your area.

• Get your house ready. Remove clutter, clean your house, wash your windows, add flowers, turn on lights, open draperies and blinds, remove valuables and breakables, confine pets, turn on soft music, and set up a table for your property fact sheet near the entrance.

• Develop a follow-up sheet. Getting feedback on your home from prospects who attended your open house will give you a better understanding of how to make your home more appealing to buyers.

Multi Unit Maneuvers

Posted at 12:46 PM, May. 10, 2009

I recently started working with a buyer who is in the market for a multi-unit building in the West Ridge (aka West Rogers Park) area.  This particular sector has proven to be quite the challenge. 

I have already been shopping for a large entity since January and have seen over 100 multi-family buildings on the Northwest side of Chicago including Albany Park, Irving Park, Dunning, Hermosa, Logan Square, Humboldt Park, Avondale and Mayfair so I have seen my fair share.  What has made this particular market so difficult is the amount of the buildings that are either in foreclosure or in a short sale situation.  Now, couple that with tenants (aggitated and uncooperative none-the-less) and you have a day of frustration on your hands.  I can't tell you how many times I had appointments that I could not get into the building because of the tenant problem. 

The good news (from a buyer's perspective), is that this market was the hardest hit.  There is a considerably smaller demand for multi-unit buildings so values have dropped dramatically.  However, even with the great price reductions, most that I have seen are in need of repair.  There is a lot more "house" to fix.  Lastly, when the majority of the buyers out there are using FHA loans, well, you have a formula that can pretty much spell disaster.  FHA back loans require properties to have only minimal work needed and can take longer to close making foreclosures and short sales a higher risk for buyers.   So in essence, when shopping with new buyers using FHA loans and looking at multi-family buildings, you are literally looking for that needle in a haystack.

Boy I love a good treasure hunt!

The Housing Market Playground

Posted at 4:09 AM, Apr. 24, 2009

It seems that the new vicious playground is housing blogs where plenty of people are finding their voices, and none to kind.  Their popularity allow those from various perspectives to bash homes for sale, namely those of upper price brackets.  Why one might ask?  Perhaps the frustration that many would be buyers have towards markets in cities where housing is still expensive, even with foreclosures, short sales and otherwise, desperate sellers.  I see both buyers, sellers, agents and the population as a whole are in need of a reality check instead of throwing stones.  Taste is still subjective and motives can cause cloudy vision.  More importantly, we all need to keep a positive mind and mouth.

Foreclosure Grace Period Now In Action

Posted at 6:57 AM, Apr. 9, 2009

On April 5th, 2009 Gov. Pat Quinn signs into effect a new policy that can give homeowners up to 90 days of a grace period from foreclosure.  Read about the new act here.

Earth Day

Posted at 3:02 PM, Mar. 25, 2009

Earth Hour: Saturday, March 28, 8:30 - 9:30 P.M.
In 2009, Earth Hour is being taken to the next level, with the goal of 1 billion people switching off their lights as part of a global vote. Unlike any election in history, it is not about what country you’re from, but instead, what planet you’re from. VOTE EARTH is a global call to action for every individual, every business, and every community. A call to stand up and take control over the future of our planet. Over 74 countries and territories have pledged their support to VOTE EARTH during Earth Hour 2009, and this number is growing everyday. VOTE EARTH by simply switching off your lights for one hour, and join the world for Earth Hour. Learn More
 

Regarding Those New Year Diet Resolutions

Posted at 10:02 AM, Mar. 2, 2009

Here is a little Q & A from a "doctor":


Q: Doctor, I've heard that cardiovascular exercise can prolong life; is this true?

A: Your heart is only good for so many beats, and that's it... don't waste them on exercise. Everything wears out eventually. Speeding up your heart will not make you live longer; that's like saying you can extend the life of your car by driving it faster. Want to live longer? Take a nap.

Q: Should I cut down on meat and eat more fruits and vegetables?
A: You must grasp logistical efficiencies. What does a cow eat? Hay and corn. And what are these? Vegetables. So a steak is nothing more than an efficient mechanism of delivering vegetables to your system. Need grain? Eat chicken. Beef is also a good source of field grass (green leafy vegetable). And a pork chop can give you 100% of your recommended daily allowance of vegetable products.

Q: Should I reduce my alcohol intake?
A: No, not at all. Wine is made from fruit. Brandy is distilled wine, which means they take the water out of the fruity bit so you get even more of the goodness that way. Beer is also made out of grain. Bottoms up!

Q: How can I calculate my body/fat ratio?
A: Well, if you have a body and you have fat, your ratio is one to one. If you have two bodies, your ratio is two to one, etc.

Q: What are some of the advantages of participating in a regular exercise program?
A: Can't think of a single one, sorry. My philosophy is: No Pain...Good!


Q: Aren't fried foods bad for you?
A: YOU'RE NOT LISTENING!!! .... Foods are fried these days in vegetable oil. In fact, they're permeated in it. How could getting more vegetables be bad for you?

Q: Will sit-ups help prevent me from getting a little soft around the middle?
A: Definitely not! When you exercise a muscle, it gets bigger. You should only be doing sit-ups if you want a bigger stomach.  

Q: Is chocolate bad for me?
A: Are you crazy? HELLO Cocoa beans! Another vegetable!!! It's the best feel-good food around!  

Q: Is swimming good for your figure?
A: If swimming is good for your figure, explain whales to me.  
 
Q: Is getting in-shape important for my lifestyle?
A: Hey! 'Round' is a shape!

Well, I hope this has cleared up any misconceptions you may have had about food and diets.

And remember:

'Life should NOT be a journey to the grave with the intention of arriving safely in an attractive and well preserved body, but rather to skid in sideways – glass of Merlot in one hand - chocolate in the other - body thoroughly used up, totally worn out and screaming 'WHOO HOO, What a Ride'’


AND.....

For those of you who watch what you eat, here's the final word on nutrition and health. It's a relief to know the truth after all those conflicting nutritional studies.

1. The Japanese eat very little fat and suffer fewer heart attacks than Americans.

2. The Mexicans eat a lot of fat and suffer fewer heart attacks than Americans.

3. The Chinese drink very little red wine and suffer fewer heart attacks than Americans.

4. The Italians drink a lot of red wine and suffer fewer heart attacks than Americans.

5. The Germans drink a lot of beers and eat lots of sausages and fats and suffer fewer heart attacks than Americans.

CONCLUSION

Eat and drink what you like. Speaking English is apparently what kills you. 
 

Give Your Furnace Attention

Posted at 9:58 AM, Feb. 27, 2009

A furnace filter purpose is to help keep your furnace clean, not your home. Filter manufacturers do an excellent job marketing filters that clean your air, the only thing they do is restrict the air flow throughout your home and stress out your furnace and a/c. There are some excellent air filters on the market that are seperate from your furnace, you can also install a UV lite in your furnace that kills mold spores. After all this spending on air quality remember that the clean air is outside, the answer is to exchange the air in your home. Check out the EPA's website. Just buy the cheap $1.00 filters and at a minimum change every three monts but I recommend every month.

Courtesy of: 

The Revised Tax Credit

Posted at 9:56 AM, Feb. 25, 2009

Unsure of the difference between the previous new homebuyer's tax credit and the new one?  Learn the difference here.

Highlights of the Stimulus Bill

Posted at 9:53 AM, Feb. 23, 2009

Here is why Realtors are cheering!

Stimulus bill includes boosts for housing. The American Recovery and Reinvestment Act of 2009 (H.R. 1) increases the first-time homebuyer tax credit to $8,000 and eliminates the repayment requirement for buyers who purchase a home between Jan. 1, 2009 and Dec. 1, 2009 (See how the tax credit works). Other housing measures in the bill include:

• FHA, Fannie and Freddie loan limits - Higher 2008 limits will be reinstated for 2009, except in communities where the 2009 limit is already higher. (Link to NAR estimates.)
• Foreclosure mitigation and neighborhood stabilization – Funding will be given to states and municipalities that are recipients of Community Development Block Grant dollars to stabilize neighborhoods and redevelop abandoned and foreclosed homes.

What the Housing Stimulus Means to Homeowners

Posted at 9:39 AM, Feb. 20, 2009

There is plenty of controversy surrounding the latest plan from President Obama.  In a nutshell, his goal is to stop the impending slide of homevalues due to forclosures and reign in the current housing stock.  By doing so, we increase demand and credit with flow once again. 

Many of these changes include allowing Freddic Mac and Feddie Mae to back loans at more than an 80% loan to value ratio when they already own them.  This helps those current homeowners looking to get out of loans with bad terms or refinance at a lower interest rate.  This has been pretty much impossible up until now given homes have dropped in value.  Read the whole story here.

Chicago Condo Market Report

Posted at 9:36 AM, Feb. 18, 2009

Here is the latest stats provided by Chicago Condo Online about current market conditions.  Find out what has been affecting the sales in 2008.

The New Good Faith Estimate

Posted at 10:22 AM, Nov. 18, 2008

How exciting, as of January 2010, the Federal Government will issue a new, easier to read and understand version of the Good Faith Estimate provided to mortgage applicants.  This new version promises to put into clear and concise terms the break down of the program(s) the applicant is interested in and what the bottom line will be.  Great news!!

Read courtesy of Steven Levitt (Guaranteed Rate):

Latest From : The Levitt Report

How The New Good Faith Estimate Form Can Help You Save Money On Your Mortgage Posted: 14 Nov 2008 09:45 AM CST To help demystify the mortgage process, the federal government is giving the much-maligned Good Faith Estimate document a makeover. Effective January 1, 2010, the current, 2-page form will be replaced by a new, easier-to-understand version, spanning 3 pages. The biggest strength of the new Good Faith Estimate is that it uses everyday English to explain how the mortgage works. For example, in one section titled "Loan Summary", the Good Faith Estimate specifically answers: What is your interest rate? Can your interest rate rise? Does your loan have a prepayment penalty? Using today's disclosures, the answers are spread across 3 separate forms. In addition, the new-look Good Faith Estimate identifies what charges are legally allowed change at the time of settlement, and how a mortgage applicant can opt for higher fees in exchange for a lower mortgage rate, and vice versa. These educational elements are lacking from the current model. But for all of its clarity, the Good Faith Estimate doesn't address the issue of suitability. As in, is this the right loan for the right borrower? The new Good Faith Estimate won't prevent homeowners from choosing "bad loans" -- it will only educate them about the loan's facts. For suitable advice -- as always -- talk with a trusted mortgage professional who will both listen to your needs and help you make plans for them. Getting the "best terms" on an unsuitable loan can be far worse that getting great terms on a loan that fits.

Energy Saving Tip #10

Posted at 12:02 PM, Nov. 14, 2008

Dial Down- You may have to bundle up, but lowering your thermostat about 10% can also lower your heating bill by 10% (for example, reducing your home's temperature from 74 degrees to 68 degrees).  A programmable thermostat is highly recommended and can also help lower heat bills tremendously.

www.homeimprovementmag.com

The Audacity of Some People

Posted at 5:36 AM, Nov. 13, 2008

Now I know that there is a market out there that encourages buyers to take advantage of opportunities.  Heck, there are several sellers who will entertain anything, but I think the key here is to identify which properties those might be.  For example, properties that have had several price drops and seem to be market chasing.  This would also include properties with extremely high market time.

However, what I do not think is acceptable is that there are buyers out there looking at homes WELL beyond their price range and figure every and any seller must be desperate.  What I find worse is, what agent is putting these buyers in their cars without knowing what they truly can afford?  I have had several showings in the last couple of weeks that involved buyers who could not qualify to purchase the listings they were looking at!  We are not even talking in the ball park. 

The best is, last night I received a verbal offer via an agent from his client who offered $120K less than the asking price.  Now bear in mind, we are already very competitively priced and just dropped it $20K.  As if trying  to make it plausible, the agent said that this is all the buyer could afford.  Which leads me to the big question, "WHY are you showing your client homes that are CLEARLY out of their price range????" 

Can the garbage-pickers of buyers and agents kindly step aside?  Apparently we have reached a time that I will need to pre-screen buyers AND their agents since those agents don't seem to be doing the job, or care for that matter.

Energy Saving Tip #9

Posted at 12:00 PM, Nov. 7, 2008

Schedule Seasonal Check-Ups- Have your heating and cooling system checked seasonally.  The cost for a typical service call to clean a unit and change filters is about $75-$100.  Maintaining the "health" and extending the life of your heating and cooling system will be well worth the service fee.

www.homeimprovementmag.com

Getting a Loan Will Get Even Harder for Buyers

Posted at 10:11 AM, Nov. 6, 2008

If you are among the many buyers who are waiting things out, you are in for rude awakening.  Opportunity with great real estate prices may continue, but obtaining a mortgage will not.  If you are not considered a prime buyer, now is the time to act and get your foot in the door before it's too late.  Read the latest from Steven Levitt, Vice President of Lending at Guaranteed Rate.

Latest From : The Levitt Report

Planning To Buy A Home In 2009? Expect A Tougher Mortgage Road Ahead. Posted: 05 Nov 2008 09:45 AM CST The Federal Reserve confirmed what most of us already knew -- getting qualified for a "prime mortgage" is increasingly more difficult. In a quarterly survey of 84 banks, 75 percent of respondent banks tightened mortgage guidelines over the last 3 months for the most qualified of home loan applicants. "Prime" is a vague term when it comes to mortgages, but, historically, a prime borrower is one that can document: A well-documented credit history Very high credit scores Very low debt-to-incomes Historically, banks bent over backwards to lend money to this class of borrower. Today, they're thinking twice. The chart's steep ascent reinforces that members of all tax brackets face consequences from the current credit market turmoil. And, although some corners of credit looked poised to recover -- interbank lending, for one -- the mortgage market is yet unaffected and should be among the last to thaw. All prospective home buyers should prepare for the likelihood that mortgage guidelines continue to toughen before they start to ease. Mortgage applicants on the cusp of being approved today will almost certainly be turned down for a mortgage in 2009. Owning real estate can require a tremendous amount of advance planning and, sometimes, looking at the past is the best way to prepare for what's coming ahead. According to the Federal Reserve's survey, what's coming ahead is more mortgage application scrutiny.

What You Need To Know

Posted at 1:04 PM, Mar. 7, 2007