Are You Looking to Buy a Foreclosure in Northern Illinois?

Foreclosed and Short Sale Homes in the Northern Suburbs of Illinois are on the rise, but waiting for new properties isn’t as easy as it seems. As soon as good properties come on the market, they can be gone just as fast. As they say the early bird gets the worm.

The Foreclosure Market in the Northern Suburbs is about to become more active in the coming months and the opportunity to purchase one is going to be available for smart buyers. It is said that Nationwide Foreclosures are not going to peak until 2011. As a Real Estate Agent in Northern Illinois I have the access to systems and know people that can help me help you to find out about foreclosures coming on the market, but if it is a good deal, you have to move fast.

Buyers need to understand the Foreclosure Market which is different than the Short Sale Market.

Short Sales Verses Foreclosures

Short Sales are commonly known as pre-foreclosures. In a Short Sale, the seller arranges with their mortgage lender to accept a price that’s less than the amount they owe on the property. Part of the arrangement includes, the lender typically agrees to forgive the rest of the loan. Then the seller doesn’t have to go through a foreclosure, the buyer picks up a property at a discount, and the lender avoids taking on the burden of unloading the property. The one thing you hear about short sales, is they can take up to 6 months, so be prepared to wait. The upside of a short sale is once a contract has been signed by the seller and submitted to the bank; no one can come in and make an offer on the property. There is the possibility of the bank coming back and asking for more money, so make an offer on the property that allows you flexibility. You do not usually have this option with Foreclosures, those are one time shots.

A Foreclosure is the legal proceedings initiated by a creditor to repossess the collateral for loan that is in default. It usually involves a forced sale of the property at public auction or the bank will list with an agent in what is called a bank sale with the proceeds being applied to the mortgage debt. Bank Sales can typically close quickly once an offer has been accepted.

The Old Saying is what is too good to be true is usually the case. Foreclosed Properties in the Northern Illinois area are almost always priced 10% under the current market value. Banks are doing this to force multiple offers from buyers which usually go way over the asking price. They will collect offers for at least a week on foreclosed homes from all buying parties before they will make a decision on which offer to accept. Most of the time, the first offer you make is the final offer you make on foreclosed homes. Unfortunately the Banks have different rules then the rest of us folks. If you are looking to purchase a Foreclosed Northern Illinois Home, do your homework! Work with an agent that knows the process and who is working on your behalf.

For more information on Short Sales and Foreclosures visit my website at www.TodaysChicagoHomes.com and search local Short Sales and Foreclosures.
As a Northern Illinois Realtor out of Koenig & Strey, I can help buyers and sellers with Homes in Northern Illinois. If you need a real estate expert, look no further. Marina Jacobson can help you with all of your needs Contact Me at 847-510-5009 or email me at Marina@MarinaJacobsonHomes.com. Visit my website www.MarinaJacobsonHomes.com for all of your real estate needs.

Put Today’s Low Interest Rates To Work For You

Waiting doesn’t always pay off – interest rates may rise while you are waiting for home prices to go down even lower. It’s a buyer’s market in most areas, and rates are historically low. Below is an example of the difference in monthly payment if interest rates rise 1%.

In addition, purchasing power goes down as interest rates go up. If interest rates rise by 1% – and you want to maintain a monthly principle and interest payment near the one shown above at the lower interest rate – your purchasing power would be reduced by over 10%, from a sales price of $300,000 to $269,645.

The payment amount provided does not include homeowners insurance or property taxes which must be paid in addition to your loan. Your actual payment may be higher. Your loan’s interest rate will depend upon the specific characteristics of the loan transaction and your credit profile up to the time of closing. If the down payment is less than 20%, mortgage insurance may be required and could increase the monthly payment and APR.

Talk to me about your financial needs and goals. Why wait when you could be taking action! Now may be a great time to purchase a home! My expertise in home buying can help you when looking for your dream home. If you are looking to buy a home in Glenview, Northbrook, Morton Grove or Chicago call me, Marina Jacobson at 847-510-5009 or email me Marina@MarinaJacobsonHomes.com. To search the MLS for FREE visit my website at MarinaJacobsonHomes.com.

Chicago Illinois Real Estate News

 Real Estate News and Information  Topics: Will the New Short Sale Rules Help the Process?  What’s Happening in Real Estate for 2010?  Energy Efficient Mortgages.    And for  more information on whether you’re buying or selling real estate in Chicago Illinois go to: www.MarinaJacobsonHomes.com

Closed Homes in Glenview, IL

If you’re wondering:  Closed homes in Glenview in December 2009  I’ll update this information every month and if anyone has any questions or wants more information, please call me at  847-361-5605. Buyers credit expires on April 30,2010. It’s a great time to buy and also a great time to put your home on the market.

Closed Homes in Morton Grove, IL

If you’re wondering:  Closed homes in Morton Grove December 2009  I’ll update this information every month and if anyone has any questions or wants more information, please call me at 847-361-5605. Buyers credit expires on April 30,2010. Great time to buy and also a great time to put your home on the market.

Home Value

Often people wonder, what would increase my home’s value? Is it an additional bedroom, bathroom, pool, garage, etc? Here is a good reference article.  Click Here.

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Best fix for a cracked patio

Today’s Real Estate News
Best fix for a cracked patio

Don’t paint it, layer it

Paul Bianchina
Inman News

Q: I enjoy your column and have a question for you. We built a home last year and have a concrete patio at the rear. It already has a crack in it (not very large) and it’s starting to stain. I would like to improve the appearance. What would be the best choice? Paint it, carpet it (I do not like the look of the turf like outdoor carpeting), lay down a stone covering over it, or something else? It is fully exposed, and we live where the winters are not very cold but the summers can get very hot. There are few trees around it so leaf stains are not really an issue. We keep our grill, a few chairs and a patio table on it. It gets direct sun about half the day. Suggestions?

A: If the patio is low enough in relation to any doors so that adding a layer on top won’t cause any height issues, my recommendation would be to add a new decorative layer of masonry on top of the concrete. This will add resale value, and also be easy to maintain. Depending on your preferences and what would go well with the house, you might consider bricks, tile (look for exterior floor tiles, also called paver tiles), flagstones or other materials. Lighter colors will reflect the sun to some degree, but be aware that any masonry surface will absorb heat, about to the same degree as the original concrete patio.

Again depending on the height in relation to doors, another thing to consider would be a layer of stamped, colored concrete on top of the old patio. A good concrete-stamping contractor can offer an amazing selection of colors and patterns that look great and hold up very well.

BUY NEW OR IMPROVE?

Q: With so much inventory in the housing market for sale, is it better to build new, or buy and improve?

A: When you have a down market like this one, in my opinion it’s the best time to buy and improve. You have a better chance of finding a good bargain on a fixer-upper, perhaps even a foreclosure, and with sweat equity you have a good chance of making a nice profit when it comes time to resell the house when the market picks up again.

If you decide to go this route, concentrate your remodeling efforts on rooms such as the kitchen and bathrooms, stay neutral with your color choices, and also look at the curb appeal aspects of the landscaping and exterior. I like to use a philosophy of quality over quantity: do good work; use good materials; always get the necessary building permits; and don’t cut corners like you see on too many television “house flipping” programs.

DO I NEED AN AIR COMPRESSOR?

Q: Thanks for your article on air compressors. I was told that the only way to remove ceramic tile from our floor is with an air compressor, and I was actually looking at them today at Home Depot. I’ve been doing it manually because I’m not in a hurry, but the mud is a pain to remove. Should I consider an air compressor? I would be using it only for this task and then see no other application for it. So I hate to spend the money if there is an alternative that I can use over time.

Thanks in advance for your advice!

A: First of all, it’s important to understand that all an air compressor does is compress air so that it achieves a high-enough pressure to be able to power different tools, such as air guns. The only way I can think of that an air compressor would help you out with your tile-removal task is if you also purchased some type of air-powered chisel to chip up the mud — which would definitely be faster and easier than chipping it all up by hand.

As far as other applications, an air compressor is actually a very useful piece of equipment to have if you do much home improvement work. It will power a wide variety of nailers, from large framing nailers to smaller finish nailers and staplers, as well as paint-spraying equipment and inflation accessories. There are currently a number of air compressor/nailer combinations available at many home centers and hardware stores that offer you a good opportunity to get a top-quality, name-brand compressor with one or two nailers and even a hose, all for a very good price. You could then also purchase a basic air chisel for less than $50 to help with your tile removal. With any of these applications, always remember to wear both eye and hearing protection.

If you don’t think you’ll have any future use for the air compressor and you don’t want to buy one, you can always rent one at any rental yard, along with the air chisel.

A primer on purchase offers.

Today’s Real Estate News 4/21/09

A primer on purchase offers
Today’s Real Estate News Provided by Inman News Monday, April 20, 2009

Don’t commit to more than you can comfortably afford

Dian Hymer
Inman News

Decades ago, sellers priced a little high to leave room to negotiate down. Buyers typically offered 5 percent less. Then they negotiated and settled at a price in between. Today, there is so much variability in the housing market that it’s impossible to use a pat formula for coming up with an offer price.

Your goal is always the same: You want to buy the best house for your needs and pay the lowest price. In many cases, you can start with a price that is less — maybe even considerably less — than the asking price and negotiate from there.

Tailor your offer price to the specific house you want to buy. How much you offer should depend on how much you can comfortably afford to pay, which may be less than what the lender says you can afford. The price should be determined by current local market values, how well the listing is priced for the market, and whether or not you are in competition.

HOUSE HUNTING TIP: Buyers making offers in competition should try to make a rational decision regarding how much they’re willing to pay. Don’t get caught up in the frenzy of activity and offer more than your top price for the property. If you overpay, you could get cold feet and back out. In this case, your deposit might be at risk.

An appraisal contingency makes your offer contingent on the house appraising for the price you agreed to pay in the purchase agreement. If the property appraises for less than that price, you can withdraw from the contract and your deposit will be returned to you. That is, if your purchase agreement clearly stipulates this.

Other options are to try to renegotiate the price with the seller or put more cash down to make up the difference between the loan amount the lender is willing to lend and the purchase price.

Lenders are being just as cautious about appraisals as they are about qualifying buyers for a mortgage. Some appraisals are coming in lower than market value and some lenders are knocking down the appraisal 5 percent or so if they’re concerned that home prices might decline.

Buyers who offer an under-asking price can improve their chances of starting a dialogue with the seller if they are preapproved by a lender for the financing they’ll need to close the deal. The number of transactions that fail has increased in the current market. In most cases, this is due to buyers having difficulty getting financing. If the sellers know you will be able to perform, they’ll be more likely to work with you to come up with a mutually acceptable price.

Short-sale sellers will need lender approval if the accepted price is lower than the amount of financing secured against the property. This can be a slow and tedious process. Many lenders realize that it makes more sense for them to work with a buyer on a short sale than it is to let the property go into foreclosure. But, your contract should include an escape clause so that you can withdraw without penalty if the lender is not responsive.

THE CLOSING: If you make a low offer on a bank-owned property (REO) and you don’t get a response, make another offer at a higher price, but only if you think the property is worth it.

Dian Hymer is a nationally syndicated real estate columnist and author of “House Hunting, The Take-Along Workbook for Home Buyers” and “Starting Out, The Complete Home Buyer’s Guide,” Chronicle Books.

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