This might help you in the days ahead

I’ll admit it. Despite the great time with the family over the holidays, the excitement of reflecting on the year’s achievements, and planning for an incredible 2010 with my real estate business, I’ve been feeling a little overwhelmed over the past few days.

I’m sure you can relate to the feeling. Those times where you feel there is just too much to do, you have a million thoughts running through your mind simultaneously, and you have this underlying sense of being “stuck”. It’s not a good feeling and it’s highly unproductive.

I thought I’d help by providing some quick tips on how you can get over that feeling of being overwhelmed. These are things that have helped me personally to go from “stuck” to moving forward in my real estate business (and this can of course be useful outside of business):

1. Put things in perspective (i.e. look at the brighter side of things). Take a moment to reflect and/or write down some of your accomplishments and what you’ve overcome – you’ll appreciate where you are and will also realize that in the grand scheme of things, this “endless to-do list” is not the end of the world! It can be tackled. You may even want to talk it out with a trusted friend or advisor who always helps you see the brighter side.
2. Write it down. If you have a million thoughts running through your head, you’ll feel a great sense of relief when you can at least get them down on paper.
3. Break it down. Once you’ve written down those thoughts and that seemingly endless list of things to do, categorize and prioritize.
4. Take one step at a time and enjoy the experience of completion. Even after you break it down, you still may feel like its just too much to do. Remember that you can only do one thing at a time. Complete just one thing and you’ll be motivated to complete another. One step at a time.
5. Delegate. Remember you don’t have to do it all. Divvy out tasks that can be done easily be others, even if your only affordable resource is a willing spouse or child.
6. Set a timer. One of my friends shared this one with me. To ensure she can stay on target and not be distracted, she’ll set a timer to complete the task and stay focused on that one task during that specified time.
7. Take short breaks and treat yourself for even your small accomplishments. This works wonders for me personally. I give myself a treat whenever I complete a few items on my prioritized to-do list. That treat can be whatever makes you happy – catching up on some reading, calling a friend, watching TV, etc, but the idea is to make it a short break (15-30 minutes) and then get back to work!
8. Under promise and over deliver. You’ll feel much better and garner more goodwill with your clients/customers, co-workers, etc. when you can promise only on what you know for sure you can do and then – if time and motivation level permits – work your tail off to give more.
9. Learn how to say “No”. This doesn’t just apply to saying “No” to others…sometimes you need to say “No” to yourself!

This is Awful...

For those well connected to the government, a fast acting and effective program.

The Obama administration’s decision to cover an unlimited amount of losses at the mortgage-finance giants Fannie Mae and Freddie Mac over the next three years stirred controversy over the holiday.

The Treasury announced Thursday it was removing the caps that limited the amount of available capital to the companies to $200 billion each.

Unlimited access to bailout funds through 2012 was “necessary for preserving the continued strength and stability of the mortgage market,” the Treasury said. Fannie and Freddie purchase or guarantee most U.S. home mortgages and have run up huge losses stemming from the worst wave of defaults since the 1930s.via WSJ

Mortgage Rates to Climb in 2010.

I read this today and I do agree. It is no secret that money has been exceptionally cheap this year, provided you can qualify for a loan. Rates this low have not been common for half a century. But, according to a recent article in the New York Times, today’s “super-low rates are not likely to last much longer.” You will be excused for thinking you might have heard this before, as commentators have been making predictions almost identical to this since at least March of 2009. Indeed, I’ve personally been somewhat surprised how long sub 5% rates have persisted in the market, largely as a consequence of the Obama adminstration’s extraordinarily loose money supply policies.

However, if you’ve been sitting on the fence on a new acquisition or refinancing of an existing property, you might want to (finally) sit up and take notice. As the New York Times indicated, there are signs that the Fed is planning a serious change of course that may have profound consequences for the credit market. The Times wrote that the “the Federal Reserve program that has driven rates to such lows, which involves buying $1.25 trillion in mortgage-backed securities, is scheduled to expire in March, and Fed leaders have said that it would not be renewed. Some analysts believe rates could jump as high as 6 percent in the spring.”

Here is a follow up on Goldman Sach

Remember when AIG got an $85 billion dollar bailout because it was too big to fail. AIG had been a main proponent of the credit default swaps that motivated the mortgage industry to make any and every loan it could.

You got it, the same credit default swaps that drove the housing bubble.

Of course looking back we see that these loans were insane to be written, helped to undercut the housing market, and is a key component to the recession that we are in now. And made the lives of millions of American’s miserable.

Well today the Wall Street Journal has uncovered that out of the bailout the fine folks at Goldman Sachs was a key driver behind AIG’s disastrous decisions. The same Goldman Sachs that has given us Henry Paulson, the Treasury Secretary that put the deal together for the AIG bailout.

A Wall Street Journal analysis of AIG’s trades, which were on pools of mortgage debt, shows that Goldman was a key player in many of them, even the ones involving other banks.

Goldman originated or bought protection from AIG on about $33 billion of the $80 billion of U.S. mortgage assets that AIG insured during the housing boom. That is roughly twice as much as Société Générale and Merrill Lynch, the banks with the biggest exposure to AIG after Goldman, according an analysis of ratings-firm reports and an internal AIG document that details several financial firms’ roles in the transactions. via the WSJ

So as Lehman Brothers was going under and Merrill Lynch was on the ropes, so was Paulson’s Goldman Sachs. The firm was on the hook for 33 billion of the worthless credit default swaps.

Now this is pure conjecture, but look at what happened:

• AIG gets an 85 billion dollar credit line from the Federal Government orchestrated by Henry Paulson.
• Goldman Sachs is protected from an impending financial disaster and gets 14 billion dollars from the government.
• Paulson’s old firm, Goldman Sachs, posts record profits while other banks are worrying about their survival.

Okay, maybe not that much conjecture after all.

The only saving grace is that even the top 30 Masters of the Universe at Goldman Sachs are feeling the heat and are not taking cash bonuses this year. Oh, they are still taking bonuses in shares, so the nobility is just postponed as they know they have their hand so deep in government now they are safe. It seems like the only safe bet in the market today is that Goldman Sachs will make money.

And don’t forget the 31,000 other employees at Goldman Sachs who will still get their higher than normal cash bonuses. Hey, 2009 was a great year to be in the financial business, right? Right?

So while we in the real estate world are suffering with an industry pummeled by terrible decisions made at Goldman Sachs and backed up by AIG and belts across America will be tightened up this Christmas, the folks at Goldman Sachs will be getting ready to spend their windfall.

Their windfall that came via the Federal Government.

The windfall of your tax money or more realistically money that they are borrowing from our children’s future.

The windfall that Henry Paulson arranged for his buddies back at Goldman Sachs.

Tips on Foreclosure

I recently went to a class on Distressed Property. I am now certified to sell this type of property and here are 6 tips for buying foreclosures:

1. Use cash or get pre-approval from the lender you are buying from – Cash is king. Many banks will take a cash offer before they even consider a financed offer. If you are getting a loan, get pre-approved from the lender you are buying from.
2. Don’t get caught up in bidding wars – Competition will bid up the price, do not get caught paying too much in a bidding war. Stick to your criteria. 70% LTV max with strong cash flow.
3. Evaluate lots of deals – Some fall in love with one deal and do whatever they can to make it work. It is highly recommended to fall in love with tons of great deals and then to evaluate and purchase best one. Make sure to always have more than one great deal in your pipeline.
4. Contact the lender directly – Creating relationships with asset managers can give you an inside track on short sales.  If the bank takes the property and you make an offer quickly, it can result in a deal without other bidders.
5. Target fixers – Move in ready homes will have more competition, targeting fixers will allow you to buy at large discounts and add value through rehab. Make sure you have a contractor look at it, do your inspections and due diligence.
6. Talk to the listing agent – Asking the listing agent if you should write an offer and at what price sometimes will give you an edge. They may tell you what the other offers are at or that there are no offers and you may be able to find out the banks bottom line. If the listing agent represents you then they have extra motivation to get your offer excepted as they have the incentive of a double commission.
   

Bank of America remodified mortgages

Bank of America announced today they have modified more than 600,000 mortgages since January, 2008. The numbers represent $215 Billion to help refinance these mortgages. The total’s include those they purchased in the Countrywide Home Mortgage acquisition.

But they represent a failure.

These are some pretty powerful numbers but they are a bit disappointing. Why, because back in January Bank of America promised to modify 630,000 to avoid foreclosure. Reading the comments of the post I did back then shows a great deal of incompetence and neglect.

Add to that the disappointment for families that were told the company was going to rework many more mortgages than they actually did you can see the frustration emanating from their customers.

So Bank of America. Congratulations for solving 600,000 poor delivered mortgages. Now step up and fulfill your promises made to your customers.

The renegotiated loans were done through its own programs and the government’s Home Affordable Modification Program, the bank said.

Bank of America has concluded more than 450,000 loan modifications since January 2008 under its own programs. That includes about 225,000 modifications so far this year.

Through the government program and others, Bank of America said it has provided $215 billion to refinance existing mortgages. via the AJC

Understanding Options for Homeowners.

• Refinance: If you have enough equity in your home, your new mortgage could pay off the old loan along with any late fees and attorney fees. If you decide to pursue a refinance, remember to shop around for the best terms and compare the Annual Percentage Rate (APR).
• Reinstatement: Your lender may agree to let you pay the total amount you are behind, in a lump sum payment and by a specific date. This is often combined with forbearance when you can show that funds from a bonus, tax refund, or other source will become available at a specific time in the future. Be aware that there may be late fees and other costs associated with a reinstatement plan.
• Forbearance: Your lender may offer a temporary reduction or suspension of your mortgage payments while you get back on your feet. Forbearance is often combined with a reinstatement or a repayment plan to pay off the missed or reduced mortgage payments.
• Repayment Plan: This is an agreement that gives you a fixed amount of time to repay the amount you are behind by combining a portion of what is past due with your regular monthly payment. At the end of the repayment period you have gradually paid back the amount of your mortgage that was delinquent.
• Loan modification: This is a written agreement between you and your mortgage company that permanently changes one or more of the original terms of your note to make the payments more affordable. The President's plan also offers loan modification.
• Best bet is to call your mortgage company and keep the communication open. The last thing you need is to go into foreclosure on your home. I am a Certified Distressed Property Expert, there is a solution for you. Call 630-464-2633. Beth
  

This is a Buyers delight.

Consider the following…

1. The world markets got the crap scared out of them when Dubai essentially defaulted on a very high number of loans… telling their lenders that they would not be making interest payments for at least 6 months. The result of this default has driven risk-averse companies and individuals into traditional safe havens, and one of those safe-havens is US Treasuries. Specifically, the ten (10) year Treasury note. The effect of spooked investors moving to “safe” havens has been to drive down residential mortgage interest rates.
2. Since mortgage rates are at their historic lows, as of this writing they were at 4.78%, the “affordability” index moved, such that more homeowners can now afford higher priced homes; or for many first-time home owners they now can qualify to make the payment on a loan.
3. The Home Buyers Tax Credit has just been extended and expanded. This continues the window of opportunity (through April 30th 2010) for real estate investors to purchase, renovate and sell homes to buyers looking to take advantage of this credit.
4. The continued high rate of foreclosures continues to provide a great number of quality deals to real estate buyers and I predict that this trend will continue for the foreseeable future.

Come See Villa Taj......

f you’ve ever wanted to take a closer look at the Gold Jerusalem stone, 4,000-pound grand entrance doors to the home at 6501 County Line Road, Burr Ridge, all you need is a ticket.

The home, called the Villa Taj due to its size and 4.5-acre setting, is part of the 2009 Holiday Home Tour sponsored by the Hinsdale Center for the Arts. Tickets are $35.

One of the nonprofit organization’s prime fundraisers, the tour is scheduled for 1 to 5 p.m. Dec. 6 and includes four Hinsdale area homes that will be open to hundreds of visitors.

“We are really excited about the four homes that will be showcased,” said Beth Waldo, one of the event planners. “The home at 6501 County Line Road, we call it Silk Road, has drawn a lot of interest from people who have seen it being built, and we are thrilled to have it on our tour this year.”

Each year, the Hinsdale Center for the Arts reaches out to homeowners of unique homes to include on the holiday tour, which Waldo said will draw more than 500 visitors.

Joe and Anita Bauer, owners of the Gothic Revival-style home at 304 S. Lincoln St., Hinsdale, agreed to showcasing their home to help the center.

“It is certainly a worthy cause,” said Joe Bauer. “We were approached last year and declined, but said yes this year.

“Anita began decorating after Halloween, and we hope people will enjoy our ‘Christmas years ago’ decorating style.”

Various sponsors, from interior decorators and florists, work with a team captain assigned to each house to come up with a unique decorating scheme.

“What we try to do is come up with a plan that complements, embellishes the vision of the individual home owner,” Waldo said. “We try to stay true to their holiday decorating ideas.”

Tour sponsors will visit the homes about a week beforehand to put the finishing touches on existing holiday decorating, Waldo said.

Choirs will be at each home to provide musical entertainment.

Patrons can purchase tickets at a number of locations in Hinsdale and surrounding communities, as well as the Hinsdale Center for the Arts, 5903 S. County Line Road.

Tickets can be purchased the day of the event at one location only: 28 E. First St., Hinsdale, the site of the HCA’s 2009 Adornments display.

For a complete listing go on line at hinsdalearts.og.

Oak Brook New Housing Developement in Forclosure

(Crain’s) — Bridgeview Bank Group has filed to foreclose on Brittwood Creek, an exclusive 56-acre development of posh single-family homes in Oak Brook by longtime suburban homebuilder Callaghan Associates Inc., another reminder of the nearly dormant market for new high-priced homes.

After paying $21.3 million for the site in late 2006, a Callaghan-controlled venture has apparently sold just one of the 30 lots in the subdivision, at State Route 83 and 35th Street in the western suburb.

The wooded development site, which includes a winding creek, is about 2 miles south of the bustling Oakbrook Center shopping mall. Roads, sewers and other infrastructure have been constructed.

Callaghan financed the purchase and other development costs with a $24.7-million construction loan from Bridgeview, based in the southwest suburb.

But in September, the Callaghan venture began missing monthly loan payments, according to a complaint Bridgeview filed Oct. 29 in DuPage County Circuit Court Court. The total amount due is a little more than $23 million, the complaint says.

A lawyer for the bank, John J. Pcolinski Jr. of Wheaton law firm Guerard Kalina & Butkus, says, "It is appropriate for the parties to continue negotiations. We're hopeful it will be resolved satisfactorily for all parties."

Daniel Callaghan, president of Westmont-based Callaghan, did not return calls requesting comment. His father and the founder of the company, David Callaghan, died in July at age 80.

David Callaghan began his development career in 1954 building houses in Oak Lawn for first-time home buyers, eventually expanding the company to include multi-million-dollar mansions, according to an obituary in the Chicago Tribune.

In recent years, Callaghan Associates focused on developments targeting empty-nesters, such as the 78-home Forest Gate subdivision in Oak Brook, which is nearly complete, and the Savoy Club, a planned 52-unit project in Burr Ridge

Happy Thanksgiving Day

May you and your family have a wonderful day. I will be celebrating with my family out of town for the day. Will be posting next week. Beth

What is "As Is" buying a home.

Banks are selling their properties, “As is” but what does, “as is”, really mean?

• Does it mean that once I make an offer I have to accept the present condition of the house?
• Does it mean that when I take a look at this house I have to sneak around and check everything before I make an offer?

This is what “As is” means:

“It means that you are purchasing this home in it’s present physical condition. The seller (bank) is selling you the house without any warranties or guarantees of its condition whatsoever. The seller (bank) will not repair or improve on anything, period.”

But does this mean that you have to purchase your prospective home blindly? The answer is NO.

Even though you are purchasing a property “As Is” you still need to know what “As is” is. Do you follow me?

This is why you should always elect to do a home inspection especially on a bank owned property where no one knew how the home was cared for and no one knows what happened right before the past owners left the property. They could have done some things that made the property unsafe or could have done damage that wiped out any profit you had calculated into the deal.

You need to ask for this home inspection period so you can find out what the “As is” condition is of the property. Once you are satisfied with the present condition is when you proceed with the purchase. If not, cancel!

Yes, you lose out on the cost of the home inspection but that is the price you pay for taking this on.

The cost of the home inspection is well worth it considering the headache you would have had in the future trying to make the house livable.

Villa Taj .......still empty.

The eastern influenced home at the corner of Plainfield and County Line Road, started out at being listed for $24,000,000. It was such a joke in the fact that the house had little land with it. So the builder- a doctor, then placed it up for foreclosure auction with the starting bid of $6,250,000. It was a sealed bid auction. Three people came with checks for the down payment of $250,000. At the auction it was not placed on the block, instead they took all 3 bidders information and told them that they would meet with the builders lawyer and place a one time bid with the highest as the winner. There has been no word about the meeting and the home is still empty. Meanwhile the Doctor has moved to Florida and started his practice there. The Doctor had never built a home before and this was his passion to build his dream palace. Unfortunately he had no clue about the market. I wonder how he is going to avoid capital gain taxes. Stay tuned.

This is Last Months Foreclosure

Illinois had the dubious distinction of being 3rd in the nation in October for the number of foreclosure filings with 19,946, the highest monthly total since January 2005. It beat out states such as Michigan, which ranked 7th.

One in every 263 homes in Illinois received a filing.

In Cook County, the closest set of data we have for the city of Chicago, foreclosures filings spiked 67% from a year ago to 11,494. It was also 131% higher than September.

There are government forces at work which led to the sudden spike.

From the Associated Press:

The rise in Illinois in October compared with September can largely be attributed to foreclosure activity catching up in the wake of a state law signed in April giving delinquent homeowners more time to work out deals with lenders, says Rick Sharga, senior vice-president at RealtyTrac.

The law created artificially low numbers for a several months earlier this year in Illinois, Sharga says. The numbers have increased as lenders have learned how to work through the process in the wake of the law.

Illinois third highest state with foreclosures [Sun-Times, Francine Knowles, Nov 12, 2009]

Local foreclosure activity jumps after artificially low period [Associated Press, Nov 12, 2009]

Hinsdale Area Market Report for the Last 30 Days

This is the area report of single family homes sold in the last 30 days compared to last years.

Hinsdale: 127% increase

Western Springs: 220% increase

Clarendon Hills: 117% increase

Burr Ridge: 200% increase

Downers Grove: 189% increase

La Grange: 114% increase

Marketing times are averaging 8-12 months dependent on town, housing type and price range. Expensive homes are taking longer to sell. The $8000.00 tax credit is applied to some of the sales. The area is showing more activity but prices are lower than last year. We will see how the2009 ends.

If you are interested in selling your home, call 630-464-2633.

33 W. Deleware 8-C

Connect mls

I have listed this wonderful Studio apartment for sale in the Gold Coast. The building has party deck, office workstation, work out room, and 24 hour door security. It is between State and Dearborn and allows small dogs and cats. The studio is pottery barn decorated and features, new window treatments. Has a full walkout balcony and seating for table and chairs. Just steps to all the restaurants and shopping Oak Street and the Michigan Ave. The unit is great for investors. Call for a showing. Listed for 161,900.

Well you knew this was coming

Good to Know.|

The Worker, Homeownership, and Business Assistance Act of 2009 has extended the tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence. The tax credit now applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.

The income range for eligible purchasers has been expanded so that the credit doesn’t begin to phase out until the modified adjusted gross income of purchasers exceeds $125,000 for single filers, $225,000 for joint filers. The old phase-out thresholds were $75,000 and $125,000, respectively.

The credit has also been expanded to cover purchases of a new principal residence by people who have lived in their current principal residences for at least five out of the last eight years. However, they will only be eligible for a $6,500 maximum credit. The tax credit applies to sales for those purchasing a principal residence after November 6, 2009 and on or before April 30, 2010 (or purchased by June 30, 2010 with a binding sales contract signed by April 30, 2010).

More information is available at www.federalhousingtaxcredit.com

Trouble for Nicholas Cage too

Reports are that bad business decisions, he is suing his business manager for 20 million dollars, is forcing the actor to liquidate his housing holding around the world. The IRS has a 6.3 million dollar lien on a couple of his houses and the actor has an auction scheduled for November 12th in New Orleans to sell 2 of his properties including the Haunted LaLaurie Mansion that he bought in 2007.

His holdings have included a pair of apartments on a swanky stretch of New York’s Fifth Avenue, a Bavarian castle in Germany, Dean Martin’s former home in Beverly Hills, Calif., and a townhouse in Bath, England, among others.

But apparent financial troubles have prompted Mr. Cage to try to sell several of his luxury properties during one of the most difficult real-estate markets in years. And in August, the IRS slapped tax liens on Mr. Cage’s two New Orleans properties – including the allegedly haunted LaLaurie Mansion in the French Quarter. Now both estates are to be sold at auction on Nov. 12. via WSJ

Good Read From the Real Estate Blogger

How do you make billions of dollars and screw every taxpayer, millions of pensioners, and get away with it?

Work for Goldman Sachs.

That seems to the be the story of the housing crisis as reported by McClatchy in a special report. And the worst part of the story is that there will be no consequences for the company, the politicians that helped create this mess, and those who lost huge amounts of money.

Check this out:

McClatchy’s inquiry found that Goldman Sachs:

• Bought and converted into high-yield bonds tens of thousands of mortgages from subprime lenders that became the subjects of FBI investigations into whether they’d misled borrowers or exaggerated applicants’ incomes to justify making hefty loans.
• Used offshore tax havens to shuffle its mortgage-backed securities to institutions worldwide, including European and Asian banks, often in secret deals run through the Cayman Islands, a British territory in the Caribbean that companies use to bypass U.S. disclosure requirements.
• Has dispatched lawyers across the country to repossess homes from bankrupt or financially struggling individuals, many of whom lacked sufficient credit or income but got subprime mortgages anyway because Wall Street made it easy for them to qualify.
• Was buoyed last fall by key federal bailout decisions, at least two of which involved then-Treasury Secretary Henry Paulson, a former Goldman chief executive whose staff at Treasury included several other Goldman alumni.

The firm benefited when Paulson elected not to save rival Lehman Brothers from collapse, and when he organized a massive rescue of tottering global insurer American International Group while in constant telephone contact with Goldman chief Blankfein. With the Federal Reserve Board’s blessing, AIG later used $12.9 billion in taxpayers’ dollars to pay off every penny it owed Goldman.
These decisions preserved billions of dollars in value for Goldman’s executives and shareholders. For example, Blankfein held 1.6 million shares in the company in September 2008, and he could have lost more than $150 million if his firm had gone bankrupt.
With the help of more than $23 billion in direct and indirect federal aid, Goldman appears to have emerged intact from the economic implosion, limiting its subprime losses to $1.5 billion. By repaying $10 billion in direct federal bailout money — a 23 percent taxpayer return that exceeded federal officials’ demand — the firm has escaped tough federal limits on 2009 bonuses to executives of firms that received bailout money.

So you have the sitting Treasury Secretary, Henry Paulson who (surprise, surprise) was the former head of Goldman Sachs, calling the current head of the company for advice on how to manage the housing and lending crisis. And the result is the decimation of a competitor and a bailout of Goldman with taxpayers money.

Oh, and did I tell you, Goldman Sachs reported record earnings in July when most of the other financial companies were still losing money hand over fist.

So lets recap, Goldman lent billions of dollars to homeowners who could not pay. Then they sold the debt as grade AAA to pension funds who lost a fortune. Then got huge bailouts for their poor investments while orchestrating the demise of it’s rivals by selective government participation coordinated by a former chief exec of the company who is now the Treasury Secretary.

Absolutely horrifying in my book.  However, with Goldman Sach's ties to government and the scandal that would occur if this became widely known, this scandal will never be fully investigated or prosecuted.

The Best Foreclosure in Hinsdale

Picture courtesy of ConnectMLS

This is one of the best foreclosure deals in Hinsdale as of October 2009.  The property's lot is small, but it is within walking distance of the town, train and Madison school.  The house needs updating, but overall it is in good condition. The listing started out at $495,000 in 2007.  The house contains 3 bedrooms and 1 bath on a 47x114 lot.  The house was on the market for a long time, but recently closed at $167,000.  All of you investors lost out on a great potential investment. This was a great buy in Hinsdale and you could have rented it for a great profit.  The property was listed by Tracy Andersen of SourceOne Realty.  I have more deals coming.  If you are interested, please call 630-464-2633.

The Market is going to drop prices again

The Rescue

Foreclosures: 'Worst three months of all time'

Despite signs of broader economic recovery, number of foreclosure filings hit a record high in the third quarter - a sign the plague is still spreading.

Foreclosure crisis

The number of homes receiving foreclosure filings is skyrocketing across the country. Here's the rate in your state.More

Mortgage Rates

30 yr fixed mtg	5.03%
15 yr fixed mtg	4.66%
30 yr fixed jumbo mtg	6.01%
5/1 ARM	4.07%
5/1 jumbo ARM	4.68%

Rates provided by Bankrate.com.

NEW YORK (CNNMoney.com) -- Despite concerted government-led and lender-supported efforts to prevent foreclosures, the number of filings hit a record high in the third quarter, according to a report issued Thursday.

"They were the worst three months of all time," said Rick Sharga, spokesman for RealtyTrac, an online marketer of foreclosed homes.

During that time, 937,840 homes received a foreclosure letter -- whether a default notice, auction notice or bank repossession, the RealtyTrac report said. That means one in every 136 U.S. homes were in foreclosure, which is a 5% increase from the second quarter and a 23% jump over the third quarter of 2008.

Nevada continued to be the worst-hit state with one filing for every 23 households. But even tranquil Vermont, where the foreclosure crisis has barely brushed the housing market, saw foreclosure filings jump nearly 170% compared with the third quarter of 2008. Still, that resulted in just one filing for every 5,023 households in the state -- the best record in the country.

The RealtyTrac report also unveiled the results for September, and it found that there was slight relief from foreclosure filings. Last month, notices totaled 343,638, down 4% compared with August. Unfortunately, that total accounts for 87,821 homes that were repossessed by lenders.

That deluge contributed significantly to the quarter's record 237,052 repossessions, a 21% jump from the previous three months. So far this year lenders have taken back 623,852 homes.

"REO activity increased from the previous quarter in all but two states and the District of Columbia, indicating that lenders may be starting to work through some of the pent-up foreclosure inventory caused by legislative delays, loan-modification efforts and high volumes of distressed properties," James Saccacio, RealtyTrac's CEO, said in a statement.

Most disturbing is that all foreclosures -- not just repossessions -- are rampant despite efforts to corral them. Not only has the Obama administration's Making Home Affordable foreclosure prevention program taken a bite out of REOs but lenders themselves have scaled back repossessions over the past few months to give the program time to work.

And in some low-price markets, lenders simply aren't following through on foreclosures, according to Jim Rokakis, treasurer for Cuyahoga County, Ohio, which includes Cleveland.

"They'll even set the date for the sheriff's sale, but they don't file the final papers," he said. "They hold it in abeyance and let the residents stay in the house."

In ever more frequent cases, delinquent borrowers want out of the mortgage worse than the lenders. There are no firm statistics for it, but many industry watchers claim the percentage of REOs caused by borrowers voluntarily walking away from their homes is skyrocketing.

A study of the trend by the Chicago Booth School of Business and the Kellogg School of Management determined that when home price declines drop home values 10% below the mortgage balances, people start to give up their homes. When "negative equity" approaches 50%, 17% of households default, even when they can still afford their mortgage payments.

No end in sight

The foreclosure crisis may not diminish anytime soon. "The fastest growing area is in the 180 days late-plus category, the most seriously delinquent borrowers," Sharga said. "It's going to be a lingering problem."

Plus, the RealtyTrac statistics may understate the depth of the foreclosure mess because lender and government actions have delayed many filings. As a result, some delinquencies have not been counted on the foreclosure tallies. That means the crisis may not end quickly.

And because there are so many delinquent borrowers, Sharga predicts the banks will be slow to take back their properties and put the repossessed homes back on the market.

"It's hard to envision [the banks] putting millions on properties up for sale and cratering prices," he said. "Recovery will be slow and gradual. I don't see home prices getting much better until 2013."

Illinois numbers are up with Foreclosures this Quarter

This just came from Crains

Oct. 15, 2009

(AP) — Foreclosure activity rose more in Illinois in the third quarter than in the country as a whole.

Foreclosure-related filings rose 13.7 percent in Illinois in the third quarter compared with the April-June period, according to a report released Thursday by Irvine, Calif.-based RealtyTrac Inc.

The increase was 5 percent nationwide in foreclosure filings, which include default notices and several other legal notices that homeowners and other property owners receive before they finally lose their properties.

Also, foreclosure activity in Illinois rose 30.3 percent in the third quarter compared with third-quarter 2008, a bigger increase than the 22.5 percent rise nationwide.

Illinois had the 10th-highest foreclosure rate in the U.S. in the third quarter, with one out of every 136 properties getting a filing, a total of 37,270.

The vast majority of properties in RealtyTrac's database are residential.

Nationally, the foreclosure crisis affected nearly 938,000 properties in the July-September quarter, compared with about 890,000 in the prior three months, according to RealtyTrac. That puts foreclosure-related filings on a pace to hit about 3.5 million this year, up from more than 2.3 million last year.

Unemployment is the main reason homeowners are falling into trouble. While the economy is likely out of recession, the unemployment rate — now at a 26-year high of 9.8 percent — isn't expected to peak until the middle of next year.

Mortgage companies sometimes allow unemployed homeowners to defer three to six months of payments while they are looking for a job. But there's little else they can do.

"The sheer scale of the problem is preventing the loan modification programs from having the kind of impact we'd all like" said Rick Sharga, RealtyTrac's senior vice-president for marketing.

Last week, the Obama administration hailed a milestone in its mortgage relief effort, reporting that 500,000 homeowners have received help since the program was launched in March. But new defaults are still exceeding the number of borrowers getting help.

Mortgage companies have slowed down the pace of foreclosures as they evaluate whether borrowers qualify for the administration's program. Analysts, however, forecast that many of those homeowners won't qualify, and foresee a new wave of foreclosed properties hitting the market next year. That's likely to further depress home prices.

Some homeowners are in such a massive financial hole that it's hard to design a modification that will actually provide lower payments.

Metra Train Surburbs Home Values

RISMEDIA, October 14, 2009 — During 2009, Chicago suburbs served by Metra commuter trains saw the average price of a home decline less sharply than other areas of the seven-county suburban Chicago real estate market, according to a study of home sales activity by Roudebush.

The average sales price of a home in Chicago’s suburbs during the first six months of 2009 was 19% less than during the same period in 2008. Thirty-two towns served by Metra were looked at in the study, and they experienced an average price decline of 15.2% for the same period. Median prices in the Metra served towns declined 15.4%, versus 17.4% for all suburbs.

However, the Metra towns, on average, saw 19.2% fewer homes changing hands during the first half of this year than a year earlier. That compared to 15.6% fewer home sales in the suburbs as a whole. The transactions considered in the study were for both attached and detached homes.

The market is down and the prices are lower. With the recent expiration of the $8000.00 tax credit, it will be interesting to see if there how much activity there is in the last few months of 2009.

815 W Fourth St, Hinsdale, IL 60521

Photo from Connect MLS

The property at 815 W. Fourth St in Hinsdale has just been reduced again to $249,000.  The lot size is 47x133, taxes are $5982.04, and the house has 3 bedrooms and 1 bath.  It is being sold as is for the land value of the property. It is in the Madison and Hinsdale Central school districts. The listing is with Tracy Anderson from SourceOne Realty.

This property is in a great location, but it is a small lot.  There are large trees on the property and it is the second lowest priced listing in Hinsdale.  This is a great investment property.  Call 630-464-2633 if you are interested.

$8,000 First Time Homeowners' Tax Credit - Will it be extended?

I ran across this post the other day from The Real Estate Bloggers.  This is more support that the first time homeowners' tax credit credit will continue.

If you listen to the real estate community, the $8,000 tax credit is necessary for getting the market though a tough patch and one of the more successful programs of the Federal Government. But Martha White of The Big Money has a contrarian point of view. She thinks we should kill the tax credit.

That’s not the only problem. The credit also artificially inflates the value of eligible homes sold by up to $8,000, leaving the buyer with a debt that’s greater than the value of the property. Sound familiar? Inflated home values were a big part of what got us into this mess in the first place. Perpetuating this via the tax credit might lessen the pain in the near term, but as we’ve all learned the hard way, a correction’s going to come sooner or later.

What’s more, the credit creates skewed incentives. America’s tax code is tilted heavily in favor of home ownership; if you own your house, you get to deduct the interest you pay on your mortgage as well as the property taxes. Plus, the more house you own, the more you can deduct. Some economists think this encourages buyers to stretch for a McMansion instead of buying a more modest abode; following this logic, dropping the income cap and first-time requirement on the tax credit would only increase that effect. via the Washington Post.

The reality is that Washington lawmakers hate getting rid of legislation that makes them popular. And this tax credit is popular with both the population at large and special interest groups. While I do not expect it to be kept forever, it would greatly surprise me if it is not kept alive for a few more years.

422 E 6th Hinsdale

Photo from Connect MLS

This is another property in foreclosure that has recently closed. The house has 7 bedrooms, 9.1 bathrooms, a 5 car garage, the lot size is 81x295, and taxes are $28,370. This was posted today with a closing price of $1,400.000.

The property was originally listed for $2,699,000.  It was later re-listed for $2,550,000.  The house is not completely finished.  On the inside it needs cabinets installed, flooring installed, moldings, woodworking, etc. So with the asking price as stated, you would need to have to finish the interior for living permits.  The interesting fact is the selling price of 1,400.000. This places the land value at $58.00 per square foot.  The last transaction in this area closed at $82.00 per foot with the house owner occupied. 

 

Is this a true picture of the market today? I am placing a phone call with the agent to followup.

Chicago Condo Sales are Down

The Chicago Tribune recently dug into Chicago area condo sales for August numbers and found that sales in the condo market are much slower than the single family home market.  Condo sales have crashed in several neighborhoods year over year:

• Rogers Park down 13.2%
• Edgewater down 32.9%
• Uptown down 27.1%
• Lakeview down 35.7%
• Lincoln Park down 12.9%
• Near North side down 13.9%
• Near West Side down 10.2%
• West Town down 29.5%
• Loop down 32.8%
• Near South side down 48.7%

Sales are being hampered by tighter credit and falling prices which puts pressure on other sellers to lower prices, which many are unwilling to do.

“Condo sales, until the beginning of this year, were the best part of our market,” said David Hanna, president of the Chicago Association of Realtors. “There aren’t any buyers for this stuff because the lending process is tortuous.”
Also, the condo market for move-up buyers is hampered by the high cost of jumbo mortgages of more than $417,000 and the higher down payments required for those loans. Foreclosures and short sales are bringing down comparable prices within buildings too.
“Prices are a disaster and it’s creating this vacuum in the market where everyone’s prices are pulled down,” Hanna said. “And it’s happening in the best buildings in the city.”

Some sellers whose property has been on the market for months are going to try and become landlords.

Phil Sammarco didn’t think it’d be so hard to sell his two-bedroom, two-bathroom condo in the city’s DePaul neighborhood when he put it on the market in March for $449,000. Now priced at $435,000, he has fielded — and rejected — a few low-ball offers and showed the unit to a lot of first-time buyers who have indicated they have a wealth of properties to look at.
Now he’s thinking of turning it into a rental instead of lowering the price again.
“You’ve got a lot of choices,” Sammarco said. “Right now nobody is really comfortable that the worst is behind us. If you don’t think the market is stable and you don’t think it’s going to be as good or better, why wouldn’t you rent?”

The article talks about how sales are up in September due to the looming deadline for the first time homebuyer tax credit.  But how many of those buyers are buying $400,000 and $500,000 condos?

Chicago single-family-home sales jump, but condos are still suffering [Chicago Tribune, Mary Ellen Podmolik, Sep 25, 2009]

The Market is Down

The August sales and price statistics are out from the Illinois Association of Realtors and show further declines in the city in both sales and median price. Chicago appears to be struggling to increase sales more than the total Chicagoland area.

The first-time home buyer credit boosted sales for the month. The IAR also states that foreclosures and short sales continue to put downward pressure on prices.

From the Illinois Association of Realtors:

In the city of Chicago, August total home sales (single-family and condominiums) totaled 1,928, down 7.2 percent from 2,078 homes sold in August 2008. The city of Chicago median price in August 2009 was $229,476, down 22.9 percent from $297,500 a year ago in August 2008.

“Homebuyers continue to be active, and the absorption of distressed inventory is the reason the number of units sold in August 2009 is nearly the same as this time last year. Still, the housing market in the Chicagoland area is far from robust, as most home sellers will attest. We strongly advocate for an extension and expansion of the American Recovery and Reinvestment Act’s first-time homebuyer tax credit program, broadened to include all buyers and favoring no taxpayer over another,” said David Hanna, president of the Chicago Association of REALTORS®.

“Here in Chicago the move-up buyer and those with higher incomes are facing a number of additional financial and procedural obstacles that must be addressed.”

Sales were actually higher by 1.3% year over year in the 9-county Chicagoland area as 7,009 homes sold in August compared to 6,917 in August of 2008.

“The Internal Revenue Service recently reported the $8,000 first-time homebuyer tax credit has provided a tax benefit to more than 1.4 million people to date. REALTORS® are urging Congress to extend the tax credit beyond the fast-approaching deadline of December 1 so more people can take advantage of it,” said Onorato, broker-owner of Onorato Real Estate in Coal City. “Also just now gaining awareness is the Illinois Home Start program, which offers eligible first-time buyers a short-term no-interest loan of up to $6,000 for the down payment in anticipation of the tax credit. With more time, these programs can really help sidelined homebuyers.”

According to Dr. Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory (REAL) of the University of Illinois: “The size of the unsold housing inventory continues to make this a buyers’ market with an approximate value of nine months for Illinois and almost 11 months for Chicago at current sales rates. Absent an uptick in sales, it is unlikely that prices will recover much before the middle of 2010.”

August Illinois Home Sales Strong at the Entry Level, Statewide Median Price at $165,000 [Press Release, Illinois Association of Realtors, Sep 24, 2009]

Will there be $8000 tax credit in 2010.....Yes

My answer is a yes. Yes, our beloved Federal Government will extend the tax credit to new buyers for another year because of 2 main reasons.

1. The politicians may be fools, but they are survivalists first. The economy and stock market are both trending up on some very weak data. Any blip in the economy could send them both cascading down just in time for the 2010 elections. The number one job for Senators and Representatives in their minds is to get re-elected. They will not take the risk.
2. It is one of the few programs coming out of Washington that has worked right out of the box. The politicians need something to hang their hat on and the new homeowner tax credit is a success.

These self same politicians may even extend it to all homebuyers for the year or two. Not that I would recommend it, but the $8,000 largess from the federal government could end up a permanent fixture like the mortgage deduction.

A Great Oak Brook Builder is Broke

This was a good builder for the Oak Brook and Hinsdale Area

September 22, 2009

By NICK VOGEL Contributor

Oak Brook resident and Oakbrook Terrace-based contractor Anthony Montalbano Sr. has filed for Chapter 11 bankruptcy in the United States Bankruptcy Court in Chicago.

One hundred and four creditors are named in the bankruptcy filing, including numerous banks and individuals in Illinois and Arizona, Anthony Montalbano Jr. and the village of Oak Brook's water department. According to court documents, Montalbano estimates that he owes anywhere between $100 million and $500 million.

The largest creditors who claim Montalbano owes them money are asking for more than $151 million alone.

The highest debt among those creditors is about $35 million, owed to the Colorado-based company RBC Builder Finance. The next highest is claimed by Countrywide/ Bank of America Real Estate Managed Assets, which says Montalbano owes it $22.5 million.

On Aug. 24, five days after Montalbano filed for bankruptcy, RBC filed a foreclosure against Montalbano in Will County, claiming that Montalbano borrowed more than $64.5 million and still has an unpaid balance of about $34 million. The actual foreclosure lists the following as defendants: Montalbano Builders Inc., Montalbano Homes of Arizona Inc. Montalbano Builders of Arizona Inc., APM Holdings Inc., Interstate Bank, Kenmare and Associates Inc., Illinois Brick Company, Nantucket Cove Homeowners Association, unknown owners and non-records claimants.

No court dates have been set.

Montalbano's employees also claim they are owed money. Court documents show that former employees are asking for a total of about $108,000 in unpaid salary, wages and benefits. Filed among the bankruptcy case's documents is an e-mail sent to former employees on behalf of Montalbano. In the letter, which was sent May 20, Montalbano apologizes for not being able to meet the payroll deadline. "(T)he Company greatly apologizes for any inconvenience, and greatly appreciates any and all understanding and patience you can provide during this difficult time for everyone," the e-mail reads.

The company's Web site has been disabled, a call made to Montalbano Homes was not answered and Montalbano's attorney did not return a phone call seeking comment before deadline.

HInsdale Home market for second quarter

• Off the 322 listings, 7 homes are temporarily off the market
• 35 are under contract
• 20 are short sales (8 under contract now)
• The average single family home price is $1,299,687. The median price is $995,000
• The average home has 10.6 rooms with 4 bedrooms and 3 and 1/2 bath

Looking at the last two years sales for single family homes in Hinsdale, we can see that while the number of units being sold returned to the rate being sold in August 2007, the average and median prices (both right around $800k) are still dramatically lower than the average price of $1.6mm at the same time in 2007. While we are looking at a month with an extremely skewed average price – its still pretty amazing to see the average price change by 100%.

So is this a good time to buy? There will be another round of foreclosures coming due by the end of the year and so we shall see another drop in the market. The soft market will put pressure on the sellers to drop prices as more foreclosures come on the market. It is a perfect time to learn the Hinsdale area and be prepared to buy. Call me @ 630-464-2633

Plano and expect more to come

Good economic news seems remote in towns such as Plano. Plano sits at the western end of Kendall County, where metropolitan Chicago blends into rural Illinois. Ten years ago the area's flat prairie land was covered in corn and soybean fields.  However, between 2000 and 2007 Kendall became the fastest-growing county in the US, as people moved in search of more affordable property in "bedroom communities". Dozens of developments such as Lakewood Springs were built and the county's population doubled to about 100,000. In Plano the growth was even faster, doubling in the past five years alone.

That housing boom has turned to bust. Kendall County now has the highest foreclosure rate in Illinois, with one in every 26 households receiving a foreclosure filing in the first six months of the year - three times higher than the state average and well above the national average of one in every 84 homes.

That underlines the changing nature of the US mortgage crisis. When the housing bubble burst about two years ago, some of the worst-affected areas of Chicago were poor urban neighborhoods, such as some areas of the south side. In the past year the far suburbs - overwhelmingly middle-class - have become the new face of foreclosure.

The shift reflects a move away from a "subprime" problem: one in three of the US's new foreclosures between April and June were from prime, fixed-rate loans, up from one in five a year earlier, says the Mortgage Bankers Association.

Lakewood Springs exemplifies the problem. A total of 34 homes in the neighborhood have been repossessed, with another two homeowners filing for bankruptcy. But Cole Taylor, a Chicago-area bank, has also foreclosed on its loan to the project's developers, resulting in its taking over another 23 properties directly from them.

Mr. Hausler has been working with Cole Taylor to make sure the lawns are mowed on the foreclosed properties. But there are few signs of potential buyers returning to the development.

In the years after the second world war, Plano proudly called itself "the biggest little industrial city in the world". The town remains largely blue-collar, but manufacturing jobs are hard to come by. One of the biggest local employers is Caterpillar, which makes earth-moving equipment at a plant in eastern Kendall. The company has cut more than 1,400 jobs at the factory this year - about half of its workforce.

Homeowner protection act

In April the state of Illinois passed a Homeowner Protection Act, which blocks foreclosures in the first 30 days of delinquency, requires lenders to inform borrowers they have another 30 days to seek counseling and gives them a further 30-day grace period to work with a housing counselor.

Geoff Smith of the Woodstock Institute, a think tank in Chicago, says that combined with the federal government's Home Affordable Loan Modification Program the Illinois initiative has helped, although he notes the US Treasury reported in August that only 9 per cent of eligible US borrowers were receiving loan modifications. "That's a big concern," he says. "The state has done a little bit to try to slow down the foreclosure process, but the mortgage servicers haven't been modifying enough loans to make a big difference. There needs to be more pressure on lenders."

Back in Kendall County not all is gloom. Sales of existing homes rose 19.7 per cent in July from last year, the fastest growth in the Chicago metropolitan area according to the Illinois Association of Realtors.

But Valerie Burd, mayor of Yorkville, a town near Plano - who has held two foreclosure workshops to advise residents - expects more foreclosures. Unemployment is still rising and her constituents tell her mortgage providers are still unwilling to lend money. "We lagged behind the rest of the country," she says. "We were somewhat insulated here but now - well, now it's definitely hit us."

Author: Hal Weitzman

3847 Forest, Western Springs, IL

Photo from Connect MLS
This is another nice home in foreclosure. The home features 5 bedrooms, 5.5 bathrooms and a 2 car detached garage, all on a 50x167 lot. The house was built in 2008 and has never been occupied. The current asking price is $899,900, down from the original list price of $1,249,000.00. The home is listed by Brian Bomba of Coldwell Banker. It is a house worth its current list price and the bank is ready to unload it. Call (630) 464-2633 if you are interested in seeing it.

Clarendon Hills Area

This is an interesting graph view of the Clarendon Hills area in the past few months.

Zero Interest Mortgages, Part II

When all of the nothing down and zero interest mortgages were released by our government,every one scrambled to buy a home. Now these mortgages have changed in what the owner has to pay. The rates have changes every six months and they will continue to vary. It is a very cautious time to have one of these. These are not a good value and so many people are in them.
First ,get out. Change over to a fixed 5,7,15,or 30 year. If you have a change in your income then get to your banker and let him know asap. You might be able to work a deal out. These mortgages are dangerous and they will send this market back to the toilet.

Where are the interest only mortgages?

This will make you think.

2.8 million interest only mortgages that are still on the market.

Many of these loans are still very toxic and are attached to homes that are underwater. Essentially homeowners are betting that the homes are going to rise, otherwise they will be repaying a higher balance in a shorter time when the loan matures.

The odds of homes prices rising enough to get these folks above water are slim to none, which means a whole new crop of foreclosures or short sales hitting the market.

Still, interest-only loans represent an especially large problem. An analysis for The New York Times by the real estate information company First American CoreLogic shows there are 2.8 million active interest-only home loans worth a combined total of $908 billion.

The interest-only periods, which put off the principal payments for five, seven or 10 years, are now beginning to expire. In the next 12 months, $71 billion of interest-only loans will reset. The year after, another $100 billion will reset. After mid-2011, another $400 billion will reset.

John Karevoll, a longtime senior analyst for MDA DataQuick, sees the plight of interest-only owners this way: “You’re heading straight for a big wall and you can’t put the brakes on.” NYTimes.com.

Another Round of Foreclosures

Ran across this article from Winston Westbrook.

The 2nd wave of foreclosures is coming due to the following 4 reasons:

1. The US unemployment rate is currently at 9.7% according to the U.S. Bureau of Labor Statistics for June 2009. That’s over a 1 percent increase since February and it’s only climbing. In my state of California the unemployment rate is at a whopping 11.6%. The state with the highest unemployment rate is Michigan at 15.2%. My friends, with those high percentages it doesn’t matter how low of an interest rate a homeowner received when modifying his or her loan this past year. If you don’t have a job and can’t get one, you are going to lose your home, plain and simple. Unemployment rates are only expected to rise towards the end of 2009.
2. Homeowners that were denied a loan modification and are currently behind in their payments are creeping into foreclosure.
3. Homeowners in the process of a short sale that did not get approved by the lender are getting foreclosed upon.
4. Sub Prime, Alt A, Prime and ARMS that are coming closer to their resets (please see graph below). 2007 was the last year a majority of these loans were funded. These loans are beginning to reset and with a continued down economy and low property values it will be very difficult for these homeowners to refinance. As you can see in the graph from Credit Suisse it shows that towards the end of 2009 all the way into 2011 a huge wave of mortgage resets will cause a major portion of the 2nd wave or shadow inventory as some are calling it.

Have a Great Weekend

This is just a short posting to say have a great weekend. I will be posting lots of new information next week!

Closed: 659 Justina, Hinsdale

Courtesy of MlS Connect

This listing in foreclosure closed this past week. It has 4 bedrooms, 4 bathrooms, a 3 car garage and 2 fireplaces. It was built in 2002 on a lot size 60x150. Taxes are $13,712.68.

The original listing price started at $649,900. on 3/06/2009.
The listing price was most recently dropped to $579,500 on 6/12/2009.
The house sold for $554,000.

This is located close to I -294 on the northeast side of Hinsdale. This is a fairly large home in good condition.

The house was listed by by Coya Smith of Smith Partners& Associates,Inc. If you are interested in foreclosures, there are many out there that I could show you. Please call 630-464-2633.

News From Crain's: Housing is Stablizing in 2009

(Crain's) — Chicago-area home sales inched up in July compared with July 2008, the first year-over-year increase in more than three years, according to the Illinois Assn. of Realtors.

CHICAGO-AREA SALES
Below is a monthly year-over-year comparison of home sales (single-family and condo) in the nine-county Chicago area.
Month	2009	2008	Change
January	2,965	3,927	-24.5%
February	3,082	4,326	-28.8%
March	4,260	5,759	-26.0%
April	4,747	6,094	-22.1%
May	5,634	6,927	-18.7%
June	7,140	7,806	-8.5%
July	7,427	7,408	0.3%
Source: Illinois Assn. of Realtors

In the nine-county Chicago region, 7,427 homes were sold July, up 0.3% from 7,408 sales in July 2008, the Realtors group said in a release Friday. The Chicago area hadn’t seen a year-over-year monthly increase since March 2006.

"It's significant that we are seeing break-even or better sales levels compared to last year at this time on top of the month-to-month increases since January,” Pat Callan, president of the association and owner of Realty Executives Premiere in Wheaton, said in the release.

Chicago-area sales also rose 4% last month compared with June, the sixth consecutive month that has happened.

Sales still fell year-over-year in the city, with 1,975 in July, down 11.3% from July 2008.

"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.

Statewide sales were essentially even, with 11,407 in July compared with 11,417 in July 2008.

The Realtors group's sales figures include new and existing homes. The nine-county Chicago Primary Metropolitan Statistical Area consists of Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry and Will.

Hinsdale Area Market Report

I spent a few hours this morning looking over stats for the MLS listings in the Hinsdale area. Homes sales are clearly down from 2008. This is what I see from the reports, indicating that it is still a good buyers market. Call me for more information on homes for sale.

Home sales are down 16% from 2nd quarter 2008, which was already lower year over year from the 2nd quarter of 2007 and 2006. Many of the transactions that did go through were discounted builder properties, bank owned properties and short sales. This is the current trend for transactions in DuPage County and the western suburbs of Chicago.

2170 homes single family homes closed in Dupage for the 2nd quarter of 2009. The average market time for these listings was 188 days, and the average sale price was $329,921.

In the 2nd Quarter of 2008, there were 2285 home sales with an average sale price of $375,931…

This totals to a drop in sales of around 5%, and a pricing drop of 12%. Homes are getting more affordable in Dupage County… This is in part to the many foreclosures that lead to Bank sales, and short sales. (Where sellers cannot pay anymore, and the lenders take less at closing, to avoid the extra costs involved with a foreclosure.)

Home sales are up across the country, and in Illinois…but it doesn’t look like this is the case in Dupage County. So buyers, you can still get a good deal!

Don’t forget the $8000 1st time buyer credit expires 11/30/09! You must close on or before that date to qualify!

The data in this post is from MLS Service.

What are Bank Foreclosure Properties?

From Real Estate Info Organization

When an individual is not able to pay or to keep paying the loan that he or she has taken from a bank in order to pay the debt that he/she has, then the bank will issue on a first basis a penalty charge that can increase exponentially the debt amount in just a few months. Naturally, when a debt has been grown by the penalty interests that are accumulative generally by the day not the week or the month, the borrower or debtor is usually unable to keep the pace and pay the entire over due amount.

If the debt is due to a credit card line, then the Bank can issue a foreclosure on all and each property that the debtor has, so that these properties might be put to sale and the profit be used to settle the debt of the debtor with the bank. On the other hand, if the debt that is being backed down is a real estate debt, meaning that the debtor borrowed money to make a real estate purchase either a home or a business building, the bank can take claim on the property and place it again in the market for sale.

Of course, properties that are foreclosed and that are then replaced on the market for sale usually have to have a lower cost this means that the bank will be loosing money. According to the type of loan that the borrower had with the bank, this institution might require or see fit to expand the foreclosure to the surrounding properties of the borrower such as cars and other real estate properties.

All of the properties that are seized and foreclosed by the bank will be placed and catalogued on bank foreclosure listings that are later printed and published in the corresponding areas for bank clients, public in general and sometimes even the bank employees can participate on them.

Bank foreclosure listings are a new concept which has recently emerged in the lending business. Bank foreclosures refer to listings of those homes or properties for which the homeowner has failed to make the repayment of the bank’s loan taken to purchase the property. Bank foreclosure listings are issued for such properties so that the bank can sell them in order to get back its loan amount. The listings which are issued for such properties are lesser than the current market price of the property in order to induce prospective buyers to make considerable profit from the purchase of the property. Usually the bank foreclosured are at 65% to 80% of the current market price of the property.

Kevin Simpson, has been working on Bankforeclosurelistings.org studying the foreclosures market, helping buyers on the finer points of bank foreclosure listings.