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I don’t even know where to start with this one simply because for my Plainfield neighborhood it’s not just one or two homes in foreclosure, there is at least 10 that are bank owned already with at least another 10 that are well on their way.

There is no doubt that foreclosures will bring down the property values in Plainfield and Naperville neighborhoods, but what about the eye sores they become within the neighborhood?

The weeds are covering the walk to the front door, and the lawn hasn’t been cut all summer.  There is significant amounts of debris from long gone Spring storms that swept through the area…

Contacting a Homeowners Association or the village about a problem with unkempt properties in your Naperville or Plainfield subdivision may seem like the answer, but until the bank actually regains possession of the property, there isn’t much that can be done about the disheveled condition of the exterior until the property is sold either back to the bank or to new owners.
 

Are Plainfield and Naperville foreclosures starting to affect your neighborhood?

As a responsible person, the whole idea of not paying the mortgage seems crazy to you.  Perhaps you have faced tough times too, BUT… you didn’t get through it by using our credit cards, or the equity in our home. You’re not only angry that your neighbors left you with a vacant eyesore in the lot next to yours, they made it your business by trashing the property and bringing down the value of your home.

There is a difference between luxury and necessity.  Cable is a luxury. Cell phones are luxury. Internet is a luxury. Air conditioning is a luxury. Eating out is a luxury. New clothes are a luxury. New cars are a luxury. Entertainment is a luxury… food, water, and shelter are necessity.

For people who have fallen on hard times, you would expect to see some refraining going on, but what happens when homeowners in foreclosure haven’t scaled back and haven’t done without to make ends meet?

For those sellers in default, trying to sell their house through a short sale before the auction will probably cause the bank to not very open to negotiating the sellers debt.  Part of the process of a short sale includes close and careful scrutiny of a seller in default’s bank statements.  They have to prove they haven’t been able to afford their payments due to a hardship from the time they stopped making their payments.  If there is an $2,000 purchase at Best Buy for a new flat screen t.v. on their bank statement, you can probably bet that the bank won’t be letting them off the hook too easily.

Buy many of the homeowners in default aren’t even trying to work with the banks.  These are the homes with the unkempt lawns, broken windows, and run down exteriors. These are the abandoned homes that were never listed for sale.  Does this make you angry? 

Here is why everyone isn’t willing to swallow the sub prime excuse anymore:

Adults who have the privledge of due diligence, have the opportunity in America to be EDUCATED in the home buying process.

I’m a Realtor, and yes we’ve taken our lumps for the situation too.  The thing is though, my fiducuary responsibility as a Realtor is to be the procuring cause of the sale, not determine and decide what my customer can afford to pay each month.  I think that many buyers even today would benefit from pre-purchase counseling or homebuying seminars.

Why do Plainfield and Naperville families lose their homes to foreclosure?

Death, divorce, disease, devastation, and debt. 

I have worked with some unfortunate sellers who have faced hard times, and on the flip side of that I have worked with some sellers who by their own admission made very bad financial decisions.

There are sellers out there who have done the right thing by trying to sell the house to avoid a foreclosure… but there are many more homeowners in foreclosure who leave behind a damaged property, sticking it to the lender, and in the end… ultimately you. 

Everyone pays the price for the surge in foreclosures one way or another, whether it’s through depreciation on the value of your home, or through a reduction in the amount of money banks are willing to lend customers with good credit.  Both of these situations affect the economy in big ways.

Is there an end in sight to the amount of foreclosures in Plainfield and Naperville, IL?

The only end to the current state of the real estate economy that I see is a call for more proactive measures from homeowners in default who need to try to sell their homes before they become bank owned properties.

Instead of walking away from the house, I would suggest to anyone facing foreclosure to put any money that they can save into a bank account to cover the difference between what the house can be sold for quickly against depreciation, and what the bank will accept as a short sale. It could also be use it to build up a cash reserve that can will cover your first months rent and security deposit when the time comes to move and get back on your feet.

Even after the auction, the lender can file a judgement against you for the difference between what the house sells for at the auction and what you currently owe your lender.  You are always better off trying to sell your house instead of walking away. If you are facing foreclosure and need an agent that is experienced with performing short sales, call me at 630-673-6233.

If you are looking to find a property below market value or want to invest in the Plainfield or Naperville area, I can help you find a house that meets your needs.

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Do you have a burning question about real estate in Plainfield, Naperville, or anywhere in the suburbs of Chicago? 

Submit your question about Chicago Suburban real estate and your question may get featured in an upcoming post or in the Q&A section of this website!

Do you want to know:

• How much your neighbor’s house sold for?
• What a specific real estate term means?
• How to avoid a foreclosure?
• How much you will net on the sale of your home?
• How much closing costs will be on the sale or purchase of your home?

I’m not a ghost writer… I actually write all of this stuff myself :)  I live in Plainfield, IL and I know the market here and in the surrounding areas.  If you have a question, I’ve got an answer or suggestion. 

Oh, and I promise not to stalk you! I hate when people harrass me with like 500 follow up sales calls… so I won’t do it to you.  I pinky promise!  My husband and I are in the market for a new car, and the stalkerazzi car salesmen that have been chasing down our curiousity are enought to make both of us want to bicycle to work.  Really, it’s repulsive!

It’s my philosophy to attract buisness, not attack it.  A follow up e-mail? Maybe. A follow up phone call?  Never.  I’d probably hate doing it more than you’d hate hearing it. 

Have a question?  Ask away!* 

*you can contact me via e-mail me or add a comment to the bottom of this post. I will respond within 24 hours.

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Mayfair by Leach Homes in Plainfield, IL began construction in 1993 and was completed in 1999. The neighborhood consists of a almost 1,000 homes located near Caton Farm Rd. between River Rd and County Line Rd. across from the Ashford Place subdivision and bordering the Clearwater Springs/Aspen Falls neighborhood.

Mayfair includes about 10 different floor plans ranging between 3 and 4 bedrooms, all of which include basements. There are several ranch style homes available in the neighborhood as well as bi-level, tri-level and quad-level homes.

Closed house prices in Mayfair from January through June 1 2008:

The closed comps from the last 6 months are about what you can expect to pay for Plainfield homes in the Mayfair subdivision. Prices will vary on the condition and amenities of each individual property.

Mayfair does have a neighborhood park and is within walking distance to the elementary school in many areas of the neighborhood.

The schools that are part of the Mayfair neighborhood are Meadow View Elementary, Aux Sable Middle School and Plainfield South High School which are part of the Plainfield Consolidated School #204 District.

The Plainfield Chamber of Commerce has information on many of the local area businesses, as well as Plainfield community information available on their website.

If your still not sure where to find your next home in Plainfield, give me call at 630-673-6233 or sign up for free access to Plainfield property searches.

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I just got done reading an article in the Chicago Tribune’s New Home Guide, which I found very interesting. While I wasn’t surprised at the results of the article, I was impressed that there is now research and evidence to prove that testing the market with a higher asking price, rather than at market value, will not only take longer to sell, but that it will actually sell below the median asking price for similar homes in the neighborhood.

Jeffrey Otteau is the president of Otteau Valuation Group which offers various real estate appraisal, litigation, and consulting services in New Jersey. After taking a few minutes to explore the company website, it’s quite clear that they know what is happening in real estate all over the country.

In a quote from the New Home Guide Jeffrey says, “Houses that are priced right are selling. Overpricing extends days on the market and guarantees that you will sell your home for less in a declining market.”

The key to his statement is “in a declining market"…

Many analyst’s are predicting that home values and sales prices will continue to drop throughout 2008. In a market like this, holding out for a better price may take you well in to 2009 before the decline in values can even plateau, let alone… begin to rebound.

There is also the stigma of high market times associated with listings that have been on the market for a long time. Consumers assume the sellers are desperate to sell… which leads to “low-ball” offers.

The market we are experiencing now is a result of the gold-rush days of real estate. The extremely low interest rates, which not only increased consumers consumers confidence; it increased the amount consumers could afford to pay for a mortgage, and has left many homeowners with the misconception that this is only a temporary problem.

On a similar note, while consumers were then able to afford to finance a higher mortgage, the price of the homes appreciated at a rate drastically skewed from the traditional rate of appreciation of 3-5% per year , well into the double digits in some areas especially Plainfield.

The “shake-out” we are experiencing now will give way to a more realistic real estate climate over the next several years.

The truth is, over-pricing real estate in Plainfield and Naperville to “test the market” will end up biting you in the end.

To quote Jeffrey Otteau again, “Everything’s a function of price.”

The upside? If you sell low, you’ll also be buying low when you purchase your next home. So depending on how long you’ve owned your home, it could really be a wash depending on what your intentions are for your next purchase, with all things being relative

If you want to know what your Plainfield or Naperville home is worth, call me at 630-673-6233, or fill out the form at the top of this page! 

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I was having a discussion the other day with my business associate and friend, Dan Garcia. He’s a real estate investor in Plainfield, and we’ve invested in Plainfield real estate together for the past 3 years. The other day I said something that started an interesting conversation, and made me think of the real estate market in Plainfield in an entirely different way.

I said to Dan, “It’s horrible how much money people are losing on their homes in this market. I can’t believe how much money we’ve already lost this past year…” to which he replied, “Really? How much money have you lost on your house this year?”

I thought about it, and was surprised by my own answer. The truth is… I haven’t lost a single red cent.  I didn’t sell my house, and it’s impossible to lose money that you never really had.  Plainfield home values are based on real-time data. 

Dan then clarified to me, that the only people losing money in this market are the one’s who bought high (given the rate of appreciation) and sold low. He said, “It’s just like the stock market. If you have stocks that were worth a lot of money and the market crashes at the time you chose to sell… you’re going to lose money. If the market crashes and you hold out for the market to improve, you haven’t lost anything at all.”

Hmmmmm. Food for thought, from the guy who taught me a lot of what I know.  Despite all of the gloom and doom in the media right now about real estate, it really is a great time to buy and sell real estate.

Do you want to know what your Plainfield home is worth right now?  Call me at 630-673-6233 to find out!