This is from Real Estate Bloggers.....too true.

by Charles Feldman on December 10, 2008
 Ho! Ho! Ho! boys and girls (and real estate investors) — it’s that time of year again–Christmas –when the holiday spirit is in the air. Jingle those bells! You know you want to. But, there is a slight problem this Yule time season (well, okay, a big problem) that just may dampen your good cheer.

Santa is facing foreclosure!

I know, this has not been widely reported in the news because, frankly, Santa thinks it’s none of your freaking business . . . but, the mortgage on his North Pole residence is about to go South since it was financed with one of those subprime loans we keep hearing about.
I know, you are asking yourself, why did Santa need a subprime loan? Well, come on, if you only have a job that requires you to work one night a year, don’t you think it might be hard to get a bank to give you a regular mortgage?
Now, don’t get me wrong . . . Santa is no deadbeat . . . a little too fat, maybe, but no deadbeat. The problem is the subprime mess that led to the credit crunch has led to fewer people buying toys for their tots this Christmas. This is impacting Santa in a BIG way. He’s almost doing as badly as FedEx.

Santa Learns From Fannie, Freddie, the Banks & Big 3 Autos

Santa was heartened at first by the federal takeover of Fannie and Freddie. But the sad fact is, it’s done zero for him. His elves are being laid off. His reindeer have taken to crystal meth to cope. And Mrs. Claus is moving to Miami cause she can’t take living in the North Pole now that the heat has been turned off.
Last week, Santa did try one last thing. He secretly went before a Congressional committee to ask for a small loan–something like $4 or $5 trillion dollars, I think (come on, overhead is high at the Pole).
Congress is thinking of giving Santa a loan in exchange for strict controls over the elves and his promise to develop a more fuel efficient fleet of reindeer.
Santa is sort of okay with this…he actually can’t stand the elves anyway…they are so—well—height challenged!
The fact is, if Santa doesn’t get the dough, he will default on his mortgage payment and probably have to give up his abode and workshop.
Santa is not exactly in a holiday spirit, boys and girls (and real estate investors) — Truth is, he’s a bit drunk right now. Not to worry. He’s a pro and he will be fine when the time comes.
Just please keep this in mind–when Santa comes down your chimney–he will be in a foul mood. Whatever you do, don’t talk to him, look at him or question the toys he’s brought your kids. Santa is believed to be armed and could be dangerous considering his mental state.
So, have a merry Christmas . . . keep the faith…believe in miracles and send Santa a few bucks because he’s too fat to fail!

Santa's Naughty List

  If Santa Claus was compiling a naughty list for the real estate industry who would be at the top?
I’m fairly certain Santa keeps up with the news.  If that’s the case then no doubt Bank of America will be getting a lump of coal in their stocking on Christmas Day.  In October, they suspended foreclosure proceedings in all 50 states because of procedural errors.  Last Friday, the Arizona Attorney General filed a lawsuit against Bank of America for alleged mortgage fraud.  In the suit Terry Goddard, Arizona’s Attorney General, said “BofA is abusing borrowers systematically.  It showed a blatant disregard for people’s rights and practiced blatantly deceptive procedures.” 
Bank of America isn’t just on the naughty list, they ARE the naughty list.
I have a feeling that little Fannie Mae and her brother Freddie Macare on the naughty list too.  Together they own 1,390,000 delinquent mortgages – more than any other bank or investor.  According to ProPublica, Fannie and Freddie reduced principal on 141 of 287,000 mortgages.  That’s just a tad over 0%.  Meanwhile, banks reduced principal during this same time period by almost 30%.

Rates Hit New Low After QE2 Announcement

Rates Hit New Low After QE2 Announcement

Reacting to the Fed’s QE2 announcement, interest rates responded by setting new lows. The 30-year fixed rate dropped to 4.17, down from 4.24% last week. The 15-year fixed rate also set a new low at 3.57% down from 3.63% the previous week. The 30-year is down significantly from last year’s 4.91%.
This new low should cause a boost in refinance activity and even some purchases as consumers make year end moves. This year end spike could lead us to some decent home sales numbers at a time the worst in housing price declines are yet to come. The Fed’s QE2 shouldn’t cause rates to fall much further, but we are close to testing 4%. If rates fall below 4% that could create a large burst in purchase activity.

The year end will look great if we reach a 4% rate. Let's keep our fingers crossed that we will have a buying frenzies.

Top 10 Cities With Most Underwater Homes in America

Top 10 Cities With Most Underwater Homes in America

1. Las Vegas, Nevada          80.2%
2. Phoenix, Arizona              68.4%
3. Reno, Nevada                 64.4%
4. Orlando, Florida               64.2%
5. Stockton, California         57.5%
6. El Centro, California         55.0%
7. Modesto, California          53.9%
8. Lakeland, Florida             53.7%
9. Port St. Lucie Florida       52.0%
10. Fort Myers, Florida          51.6%

The list was compiled by Business Insider with data by Zillow

If you are in the market to buy in any of these area you might consider looking. Money is at very low rates and the market has a large inventory to choose from.

5 areas to think about in selling your home.

5 areas to think about in selling your home.
There are 5 areas that you must focus on when thinking of selling your home:

1. Curb appeal – First impression is extremely important.  Potential buyers must be wowed from the curb, with an inviting property that gets buyers inside.  Fresh paint, landscaping and some good contrast with your trim can drastically improve curb appeal at minimal cost.
2. Kitchens – Kitchens sell houses, plain and simple.  Functionality with some pop can be achieved without going overboard.  Kitchens are the one place where you can add the most value in a home; don’t hesitate to look for energy saving appliances.
3. Bathrooms – Significant value can be added in the bathrooms.  Adding a new bathroom or converting a half bath to a full bath is one of the best value added decisions.  It is still not necessary to go overboard as the increased value can be added at a reasonable expense.  Also, don’t hesitate to put in water saving toilets.
4. Go Green – Applying some green upgrades definitely commands a premium in your sales price.  Appliances, toilets, heating/cooling, energy saving components, green paint — many of these items do not add much expense, but can result in increased profits
5. Unique Selling Points – Some houses have unique features such as views, access to water (lakes, ocean, etc.), decks, 5 car garages, huge lots, and so on. Often times these selling points can be emphasized with minor changes to increase value and desirability.

This is only a suggested list to keep you thinking about more money in your pocket.

Please vote today

Please make time to hear your voice counted. It is a very good day to vote.

Chicago sales are down in September

From the Illinois Association of Realtors:

In the city of Chicago, September total home sales (single-family and condominiums) were down 26.9 percent to 1,403 sales compared to 1,918 homes sold in September 2009. The city of Chicago median price in September 2010 was $180,000, down 20.0 percent compared to $225,000 a year ago in September 2009.
Year-to-date sales remain up 11.1 percent January through September 2010 with 15,285 sales compared to 13,760 home sales for the same period in 2009. The year-to-date median sales price for the city of Chicago is down 7.9 percent to $210,000 from $228,000 for 2009.

 Here is the recap of September sales over the prior 4 years.

• September 2010: 1403- median price of $180,000
• September 2009: 1918
• September 2008: 1813
• September 2007: 2108- median price of $267,750

“Distressed properties are driving sales, putting pressure on the overall median price of homes sold in today’s market. A positive indicator that our market is moving as it should can be seen with a steady pace of units sold and existing inventory being absorbed,” said Mabel Guzman, president of the Chicago Association of REALTORS® and a REALTOR® with Su Familia Real Estate, Chicago. “With condo sales in the city of Chicago up over 11 percent year-to-date from the same period in 2009, we see an expansion of choices for potential buyers to jump in the market now and find great value for homes they may have not otherwise been able to afford.”

The expiration of the tax credit has also squelched demand.

“It’s clear the housing market benefited from the tax credit through the first half of the year and now we are feeling the withdrawal symptoms in the form of slower sales. Still this extraordinary buyer opportunity should continue as mortgage rates remain in rock-bottom territory as they were just last week averaging 4.19 percent for our region,” said REALTOR® Sheryl Grider Whitehurst, ABR, CRB, GRI, president of the Illinois Association of REALTORS® and the Development and Operations Coordinator for Traders Realty in Peoria. “Bottom line, home sales will struggle until jobs return to the economy, consumer confidence improves and foreclosures work their way through the system.”

We’ve also chattered about how continued high unemployment will put pressure on the housing market.  The Illinois unemployment rate was still 9.9% in September, though that was down 0.2% from the year before.

“The slow pace of employment recovery is certainly dampening housing demand,” said Geoffrey J.D. Hewings, the Director of the Regional Economics Applications Laboratory at the University of Illinois. “In particular there is increasing concern that an employment rebound may not occur to any significant degree until late 2011. Forecasts for Illinois unemployment over the next 12 months continue to reflect the uncertainty in the economy; job growth is anticipated to be between a positive 24,000 and a negative 31,000.”