Leave a comment »

Will County and DuPage County area homeowners who are interested in resolving their foreclosure situationthrough a short sale now have a better option when they chose me to represent them in the sale of their home.  I work with an attorney who has a team of 25 foreclosure specialists ready to assist you with the process of selling your home for less than what is owed by your lender at no out of pocket costs to you.

I have come across a lot of pre-foreclosure listings on the MLS recently that will require a short sale with their lender in order to avoid a foreclosure. I've talked to a lot of agents in the process of showing many of these listings, and there is a pretty wide range of how Plainfield real estate agents are handling these short sales.

While I have performed short sales for some of my own listings in the past, I have to say that it is a tedious and time consuming process that I never care to do again.  But that's not the only reason I don't like performing short sales.  I don't do them anymore because I'm a Realtor, not a loss mitigator or a debt negotiator.

Will and DuPage homeowners in foreclosure now have a better option and more hope of sucessfully having their short sale approved by their lender. 

Why Lenders Would Rather Negotiate With a Short Sale Specialist/Attorney Instead of a Realtor:

• Many short sale specialists/attorney's have established relationships with many of the lenders and can quickly and effectively supply all required documentation and information required to proceed with negotiations. 

• Since the real estate market is so pre-foreclosure and bank owned driven in the Will and DuPage County area, many Realtors are performing short sales out of sheer necessity, but since many Realtors were never trained to perform short sales, the lives of the loss mitigators who are handling these files are overwhelmed with packages that are incomplete or missing information.  Loss mitigators work on files that they know they can close, if your short sale package is missing any information it will sit on the "dead" pile for weeks or months before it is even looked at, if ever.

• Due to the level of inexperience with short sales by so many Realtors, loss mitigators have come to dread files in which they know they will be negotiating with a Realtor, to the point of being difficult and uncooperative in some situations.  If an attorney is handling the documentation, the loss mitigator knows that all of the documentation will be thorough and complete.

I'm not saying that there aren't agents out there who sucessfully perform short sales, but if they are trying to manage more than 2 or 3 short sales at once, they won't be left with much time to actually market your home for sale, or be available to answer your questions or phone calls.   Each short sale involves anywhere from 40-55 hours of work to complete depending on the lender.

What will you get when you list your home in foreclosure with me?

• A professionally negotiated short sale with experienced short sale specialists at no cost to you.

• Legal advice from a real estate attorney.

• Convenient option of Power of Attorney to avoid having to attend the closing.

• Experienced negotiators that are familiar with special circumstances such as 2nd mortgages, liens, and IRS situations.

• A professionally marketed property complete with a full MLS description, photos, advertising, virtual tour, and Internet presence.

Below is a list of FAQ's regarding short sales provided by the law firms

foreclosure specialists:

Q:     The benefits of a short sale?
A:     You can sell the house and walk away.  Credit typically indicates "settled debt".  The foreclosure gets dismissed.  No deficiency judgment.  No bankruptcy. 

Q:     Will I owe the bank any money?
A:     The bank releases and typically writes off the deficiency.

Q:     Will I owe any income taxes on the deficiency?
A:     No, on December 20, 2007 President Bush signed into law the Mortgage Forgiveness Debt Relief Act of 2007 ensuring that any deficiency   written off as part of a short sale will not be taxed.

Q:     What about my closing costs?  Will I need to bring any money to closing?
A:     No.  All of your closing costs, the real estate commission, any back taxes owed, attorney fees, title company charges, etc., will be allowed by the lender and subtracted from the sale price.

Q:     What if I sign a contract to sell my house and the bank doesn't approve the sale?  Will the buyer be mad?
A:     The buyer has been informed and understands that that this is a short sale and that your obligations are contingent upon your bank's approval.  It is the real estate agent's job to price the property to sell and then meet the banks appraiser at the property.

Q:     I owe $600,000 to the bank the but the house will probably sell for $300,000.  Will the bank accept such a huge loss?
A:     It typically has nothing to do with the loan payoff.  It is based on the value of the real estate based upon a bank appraisal of the property.

Q:     I have a second mortgage on the this house for $50,000.  How is this going to be handled?
A:     The property is in foreclosure.  The second mortgage holder knows that the first mortgage is in foreclosure because they were served summons and complaint.  Therefore, the second mortgage holder will release their lien, but they will need to be paid something.  Therefore, when an offer comes in, the Buyers agent will be called and notified that the buyer will need to bring money to closing to release the second mortgage.  This will be addressed in the contract addendum.

Q:     I owe the IRS money and I think they put a lien on my real estate.  How is this handled?
A:     Our foreclosure specialists usually get these released without paying the IRS any money.  They will do a preliminary title search on the property to determine what is present and what needs to be dealt with prior to the Contract for Purchase and Sale, or what needs to be dealt with during the contract phase.

Q:     Does the attorney handling the short sale represent me or the bank?
A:     The attorney's office represents the seller, and they welcome your questions.  They can be contacted at the office or by cell phone.

Q:     Where will the closing take place?
A:     There are closing locations throughout the state of Illinois.

Q:     I am not going to sell this house for under $300,000!
A:     The Realtor will obtain authority to reduce the price each week in order to tell the property quickly.  No matter what the property sells for, the seller will not be receiving any proceeds from the sale.

Q:     What do you need from me?
A:     Financials I.E. last years tax returns, bank statements, check/pay stubs, W-2's and a hardship letter.

If you have any additional questions regarding a short sale, or listing your home in foreclosure for sale, please contact me directly at 630-673-6233 or e-mail me at JT4NZ@msn.com.   I look forward to working with you.

 Leave a comment »

The market has been a little off recently with the amount of foreclosures and pre-foreclosure short sales taking over the real estate market in Plainfield and Naperville, but not all properties in both Plainfield and Naperville are being sold a deep discounts.  Buyers always ask me how much they should offer if they want to have their offer accepted by the seller.  Sellers likewise ask how much they can expect to be offered for their Plainfield and Naperville properties.

On average over the last 6 months, sellers in Plainfield got about 96% of their asking price for both town homes and single family properties, with the exception of single family homes with 5 or more bedrooms, which got about 94% of their asking price. One reason that the sellers with 5+ bedroom houses may have gotten less than asking price is because it was over priced to begin with.  Bedrooms typically add between $7-10K to the value of a house, but not often more than that.  Another reason is that there is not as great of a market for homes with more than 4 bedrooms, lessening the interest that buyers would have in a home that may be more than what they need.

In Naperville, it's a similar story but the numbers are down just a bit. For all single family homes available in Naperville that closed in the first 6 months of 2008, the single family home sellers are are closing at about 95% of their asking price with the exception again being the 5+bedroom market.  Those homes are fetching about 94% on average.  Attached single family homes are fairing a little better with a sale to list price ratio of about 96%.  The exception is one 4 bedroom attached single family home that closed at 98% of the asking price, which strangely enough, is converse to the situation with 5+ single family homes in Naperville.

Plainfield Market Statistics for the last 6 months:

Naperville Market Statistics for the last 6 months:

A few things to remember about how much you should offer on a properties in Plainfield and Naperville are:

• Is the house you are interested in over-priced?  Any good Realtor would, and should, pull the neighborhood comps and do a market analysis on the property you are interested in BEFORE you make an offer.  Find the true market value before you start negotiating and then go from there.
  

• Owners of exceptionally well kept homes in Plainfield or Naperville that are already priced well may be less willing to negotiate.  They know they will sell their home to the next person if you make an offer that is too low.  Often these sellers are often willing to wait for a higher priced offer.
  

• Ask about their motivation.  Do they need to move? Are they just testing the market? Have they been transferred?  Experiencing a life change due to birth, death, marriage, divorce or illness? 
  

• Does the property need repairs or have deferred maintenance that needs to be addressed?  If so, how much do you think it will cost to repair?  Is the house priced accordingly?

• Does the property have some kind of functional obsolesce that will make it difficult for you to sell in the future?  Power-lines or freight train tracks cutting through the back yard?

• How much have similar properties sold for in the neighborhood?

• And finally....How much do you really want that house?!
  

 Leave a comment »

Not long ago the road sides along Plainfield and Naperville streets were littered with 'WE BUY HOMES' bandit signs, but today the only investors still surviving in the current real estate market are purchasing homes at deep discounts through short sales based on their current market values. (not on what the homeowner owes), and then holding them as rental property until the market improves.

This has opened up the market to a whole new set of buyers who were previously shut out of the market due to the real estate feeding frenzy that ended a little over a year ago by these investors. 

Three simple reasons that investors have stopped buying up all of the good real estate opportunities in Plainfield and Naperville are:

• Funding for these types of loans have dried up with the demise of the sub-prime lending industry.
  
• There is too much competition in the inventory of homes to sucessfully sell the investment property quickly to avoid holding costs.
  
• They can no longer bank on the anticipated future appreciation on their investment for equity.

While the inventory of Plainfield and Naperville homes being sold for less than what is owed is driving the price of homes that are available for sale, many buyers who have been lucky enough to sell their home, or 1st time home-buyers that don't have a home to sell, are cashing in on the opportunity to purchase pre-foreclosure and foreclosed homes in Plainfield and Naperville.

In the past, bank owned or foreclosed homes were traditionally abandoned and trashed on the interior, but today the face of foreclosure has changed. Your neighbors, family, and friends are among those who have either lost or are about to lose their home, and that is not the case. These homeowners are simply walking away. Homes in Plainfield were among one of the hardest hit communities in Will County to be affected by foreclosure, but the amazing thing is... even after everything that has happened in Real Estate over the last 3 years, Plainfield home prices are still 2% above their 2005 values on average.

Because the volume of foreclosed homes in Plainfield and Naperville is on the rise, buyers now have a better opportunity to negotiate directly with the bank on their purchase. There are several reasons that negotiating with the bank in the purchase of a Plainfield or Naperville home will end in the buyers favor in most cases:

• The bank is not emotionally attached to the property.
  
• Their price is based on statistical data including recent home sales and appraisal.
• Many of these loans are federally insured by the US government, (FHA loans) for 82% of the loan to value ratio, meaning they can be sold for a bank net of 82% of their value.
• Banks understand the value in liquidating a non-performing asset for their investors.
• Because Illinois is a judicial state, the foreclosure process is 4-10 months long on average. The bank is often eager to settle for less before the date of the auction to avoid additional court costs and property management fees. Also, the home is less likely to be vandalized by the homeowners if they have not actually lost their home at the auction.

1st time home buyers, and buyers that don't have a home to sell, have a unique opportunity for buying a Plainfield or Naperville home that is in good condition and under market value. The hesitation for buyers in this market comes from analysts that say the worst isn't over yet. The best way to safeguard your investment is to buy a home under market value through a short sale, preforeclosure or as an REO, right from the bank.

I predict the Plainfield and Naperville real estate market will begin to improve after this November's presidential election. The current price of gas and the worry of inflation have many potential home-buyers climbing back over the fence. Consumer confidence will begin to improve when some of the uncertainty of our governmental and economic conditions have been put to rest.

I have 4 years of experience in dealing with short sales, bank owned properties and pre-foreclosures. I have successfully negotiated short sales for homeowners in foreclosure, and I have been performing Broker Price Opinions for lenders on property in default for the last 12 months.

I know how to evaluate property in Plainfield and Naperville because I live and work in the community. I can help you find the best home at the best price. The best part is it's not just what I'm good at... it's what I love to do!

If you are buyer looking to purchase or invest in Plainfield or Naperville real estate, I can help you find the best value for your money, and put you in a positiion of equity to protect your purchase from futher market depreciation.

If you are a homeowner facing foreclosure in either Plainfield or Naperville, IL, I can attempt to negotiate a short sale with your lender to avoid a foreclosure. Due to the high amount of inquiries I receive about short sales, I limit the number of homeowners in foreclosure that I can sucessfully assist at one time.

Call me at 630-673-6233 to get started right away. I look forward to talking to you.

 Leave a comment »

Rent to own homes are available in almost any one of the subdivisions in Plainfield, but there could be a hidden risk to your arrangement, and the money you put up for a down payment.

There are quite a few investors who purchased homes from homeowners in foreclosure, that are now in foreclosure themselves. It's important to have properly prepared contracts in place when putting down a lump sum down payment for a lease option and to have it reviewed by an attorney.  The property you have made arrangements to purchase could go into foreclosure without you ever even knowing about it.

Investors often buy property with the intent of renting it out, but many new investors got into the market in hopes of making fast cash by flipping homes.  A large portion of the investors that got into the business to flip houses were banking on the previous double digit rate of appreciation.  That market crashed and burned a long time ago, and a lot of investors are now faced with homes that are worth the same or less than what they paid a few short months ago, which makes it impossible to sell without having to pay large amounts of money out of pocket to be able to sell the house.

Since the plan was to only rehab and sell the property in a short amount of time, these investors often take out loans with high rates of interest from sources known as "hard money" lenders.  When real estate investors own multiple properties, the extremely high holding costs on a hard money loan add up very quickly.  As a means to keep their loans current they often end up offering the property for rent, or as lease option to purchase. They intend on keeping up with their payments, but there have been instances where the landlord used the rent money for things other than the mortgage.  In that case, while you are paying the rent in full and on time, your landlord could be sliding further and further into foreclosure and pocketing your rent check for more immediate needs.

Rent to own options can be any arrangement that you agree upon with your landlord, but it often involves putting a non-refundable down payment towards the future purchase, in exchange to secure a price against future appreciation.  Lease options that were written in the hay day or all of this real estate madness could have serious implications because deal the tenants thought they were getting, may not be such a great deal anymore.  Even in situations where the tenant and landlord prepare to proceed with the arranged sale and the agreed upon price, appraisers always have the final say when it comes to getting the loan.  The appraisal is the banks protection against default when it comes to lending out money.

I personally think that rent to own options are great opportunities for renters who want to own a home of their own, but I highly suggest the services of a Plainfield Realtor and the legal advice and review of the contract with a private attorney. There are some really great landlords out there, but there are some really shady ones too.  Do your due diligence and research the property before you sign any papers. Here is a link to Yahoo's Rent vs. Buy Calculator.

Here are some things to look for if you suspect that the home you have contracted to purchase is in foreclosure:

• The landlord delays repairs or maintenance on the property.
• A registered letter is delivered by the Will County Sheriff's Dept for the owner.
  
• A representative of the bank comes to the home asking to speak to the owner.
  
• Late notices arrive in the mail addressed to the homeowner.
• Letters and notices from other investors offering to avoid foreclosure arrive in the mail.  Default notices are public record in Illinois.
• Someone from the street is photographing your house from the car or curb.

Your landlords foreclosure will affect you.  This link is an article about landlords in foreclosure explains the process and the implications it will have on your situation.

If you are currently renting and want more information about how to purchase your first home to take advantage of today's great home prices, call me at 630-673-6233.  I can put you in touch with the right people to make the possibility of owning your first home a reality in less time than you might think.

Real also: What First Time Home Buyers Need To Know
              Plainfield, IL and Why It's a Great Place to Raise a Family

 Leave a comment »

The Lakelands in Plainfield is located near Naperville-Plainfield Rd and 135th St. in Plainfield, IL.  These custom built homes have been built on premium lakefront lots, where homeowners can enjoy resort style living all year round.  The private lake in the gated Plainfield community also includes a private clubhouse.

Many homeowners in the neighborhood own boats for fishing and water skiing.  It's hard to imagine this little resort like community in the middle of the bustling Chicago suburb called Plainfield, but I promise... it's real!  I drool every time I drive past it.  The neighborhood is so unique it's almost majestic.  I spent most of my summers on Diamond Lake in White Cloud, Michigan. I know how much fun swimming and boating are in can only imagine what it's like to own a piece of this prime Plainfield real estate and live there year round!

There are currently 9 homes for sale in The Lakelands in Plainfield, and 5 homes have sold in there in last 12 months. Asking prices in the Lakelands right now are ranging from $599,900 to $945,000.  The closed sale prices of homes in the neighborhood range in price from $580,000 to $864,500. 

Most of the homes for sale in the Lakelands feature custom builder amenities such as: gated entrance, walk-out basements, fireplaces, gourmet kitchens, wood floors, and master suites, and as I mentioned before... lakefront lots! 

Bases on the available MLS data for the Lakelands, the yearly association fees for the neighborhood range from $1000 yearly to $1500 yearly.  I imagine the association fees are based on lot location and fluctuate on a home by home basis. 

If you are looking for a home in the $600,000 to $700,000 price range, The Lakelands in Plainfield has the most to offer and enjoy for your investment.  Call me to set up a private showing of the homes available in the Lakelands right now at 630-673-6233.  If you're a homeowner in the Lakelands that is thinking about selling your property, call me for you complimentary market analysis.