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CategoriesSelling Real EstateBuying Real Estate Market and Trends Homeownership Home Finance Acts of Agents RE Manners Staging The Examined LIfe Credit Ready Favorite LinksIncredible Agents.comArchivesSeptember 2009So You Want To Buy a Foreclosure: Tip Number 1Posted at 8:05 AM, Sep. 23, 2009
Most every buyer that I have sat across the table from is convinced the best deal they are going to get is a foreclosure. Don't be so sure. First, this is not a segment of the housing market for the faint hearted. You have to be quick to act on a property, and frankly, too many buyers are still dragging their feet. Secondly, don't assume they are a great deal. Yes, many are priced well,and, many are not, especially for the amount of work needed. A number of foreclosures have been scrapped. What that means is, the kitchen is missing, the bathrooms are missing, plumbing pipes are missing, you get the idea. So, for the average buyer using a lender, this is a no go. Why? The properties do not have the very basics to be considered habitable so lenders won't put down their money on the hopes you will make the necessary repairs. Now mind you, there are construction loans out there but at a higher interest rate and in need of great credit scores. Stay tuned for more foreclosure tips to come. Bank Of America Offers Streamlining of Short SalesPosted at 7:04 AM, Sep. 21, 2009Bank of America committed to streamlining short sale process Mon 1 Jun 2009 Bank of America has seen a dramatic increase in the demand for short sales over the past two years as a result of stressed economic conditions and falling housing values. Struggling homeowners are unable to sell their properties for a profit or even for what they owe and are increasingly looking at short sales as a viable option to avoid foreclosure.
“In the face of high volumes,” said Foreclosure & Real Estate Management Senior Vice President David Sunlin, “we have taken several steps to increase the efficiency of the short sale process, including increasing staffing, updating training and creating a dedicated short sale call center.”
A short sale, also called a short payoff, is a situation where the lender agrees to release the lien of the property for an amount that is less than what is owed. Typically short sales have always been a lengthy and complex process as the lenders, investors and mortgage insurers must all agree on a sales price. Today, the average short sale is taking about 50 days which is in line with other servicers. However it can take up to 90 days or more if investor approval is necessary.
Bank of America’s Foreclosure & Real Estate Management (FREM) division has been working diligently over the past year to streamline the short sale process for our borrowers. In the next 60 to 90 days, FREM will have a new internet portal that will provide real-time information for the real estate agent by finding and tracking the short sales of houses with mortgages we service. The Web portal will also accept documentation to help expedite the short sale process.
Still in the early stages is a pilot program where FREM proactively advises potential sellers and their agents that a reserve value/amount has been set. This will help ensure necessary approvals are gathered quickly in order to increase response times.
FREM is currently finalizing the Cooperative Short Sale concept to help decrease our fallout rate of 60% to 70% where short sale offers are approved but fallout prior to closing. Traditionally, the short sale process does not formally begin until a formal offer is received. Under the cooperative program, FREM will obtain information and establish current market value prior to receiving an offer. This will help decrease the time borrowers have to wait for approval and will help FREM more quickly determine legitimate offers.
“We have taken steps to keep up with demand and maintain processing and approval times as close to traditional timeframes as possible,” said Sunlin. “We are excited about the early results of our pilot program and the promise of our new cooperative short sale program to provide considerable time-savings and an improved customer experience.”
Another new initiative is the recently announced addition to the administration’s Making Home Affordable program where monetary incentives will be provided to servicers and help to cover relocation expenses for homeowners. Final guidelines have not been announced but Sunlin is “confident that it will be compatible with what Bank of America is doing and planning to implement.”
Extension of Tax Credit Is On the TablePosted at 7:58 AM, Sep. 18, 2009Last night a bi-partisian bill was introduced before the Senate to extend the current first time homebuyers tax credit of $8,000. To date, over a half of million people have qualified for this credit. The National Association of Realtors has requested that the bill be extend to June 1st of 2010 versus it's current expiration of November 30th of 2009. Most buyers (and agents alike) are feeling it is crunch time given how many transactions are taking 45-60 days to close. So the absolute latest date to write an offer is October 15th. In addition to a postponed date, the NAR is asking changes to the bill including raising the income caps and opening it up to all buyers, not just first timers, in order to help stimulate the move-up buyers who would be most responsible for the housing recovery. I will keep you posted on the results. Let's hope they do extend it. Appraisals Still an IssuePosted at 8:56 AM, Sep. 16, 2009As you know, one of the biggest challenges that Realtors and lenders wrestle with these days is getting good appraisals. In less than two years, we’ve gone from a time where many properties were ridiculously overvalued to the complete opposite – and neither extreme is good for us as an industry. The attached article is a good discussion of the issue and what’s being done to try and reach a sensible alternative. Market Trends In ChicagoPosted at 8:52 AM, Sep. 14, 2009Are we seeing signs of recovery yet? Not according to David Hanna. "Chicago continues to show a leveling of the marketplace as we see distressed properties being absorbed. With that said, we are a long way from seeing a stable real estate market in Chicago, and we face challenges surrounding lending that do not take into account real local market conditions," David Hanna, president of the Chicago Assn. of Realtors, said in the release. "Policy changes are still needed before Chicago can have a healthy real estate market, and a full economic recovery."
Median prices fell year-over-year in the Chicago area and the city. The region’s median price — where half the homes sold for more and half sold for less — was $213,500 in July, a 16.3% decrease from July 2008, the Realtors association said.
In the city, the median price was $245,000 in July, down 18.3% from last year.
Chicago Code Regarding GrillsPosted at 8:49 AM, Sep. 11, 2009City of Chicago code for outdoor barbecue grills:
Charcoal grills are permitted on balconies, but gas liquid petroleum grills such as propane grills cannot be used for multi-dwelling units of 20 people or more. Natural gas grills that have a shut off valve within three feet of the grill are permitted. City code also prohibits storing gas fired grills in any type of storage area.
You cannot have a wood-burning fire pit on a deck or roof; it must be natural gas only.
If you would like a copy of the city code, please email me.
Tim Kerfin
Calling All Winos!Posted at 8:31 AM, Sep. 10, 2009Chicago Wine Festival is here! Too bad I have to work. Perhaps this would be a good idea to plan a client appreciation get together for my fellow winos
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Find out about this Saturday event at the link below. Over 250 wines to be sampled........
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