Chicago is showing a median homes sales price of $176,400 compared to the U.S of $166, 367. It is always great when we see our home town holding up in a down economy. Prices are still down from a year ago but the trend is improving. The chart below will give you a good idea of where we are at in 2010.

State home sales from 2008 through 2009 saw a continuous lose and in 2010 there was a significant gain in the state of Illinois homes sale showing that sales are much stronger than a year ago. The growth for home sales is moving up slowly.

The Prime Foreclosures and delinquency in process for Chicago remains leveled off with the United States. Just remember that we are not at the end of short sales and foreclosures effecting the current market.

Below is a detailed report that goes over Today’s Market…

Drivers of Local Supply and Demand…
Local Economic Outlook…
Share of Total Employment by Industry…
Construction: 12-month Sum of Local Housing Permits…
Affordability of getting a loan…
The Mortgage Market…

Click Here to View the Full Market Report

As a real estate professional, I take pride in providing you with information that may help you make a decision whether you are buying or selling a home in the Chicago Land Area.
If you are looking for a Chicago real estate agent, look no further, I can help you find your dream home. Contact me, Marina Jacobson at 847-510-5009 or you can email me at Marina@marinajacobsonhomes.com. Please visit my website MarinaJacobsonHomes.com for more information about your Chicago Land Neighborhood.

Click Here to View Foreclosures in Your Area

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.

Glenview, Morton Grove and Northbrook.
HAFA is Underway!

The Obama administration has announced that it is revamping its foreclosure-prevention efforts. Here is how the changes may affect you right here in Glenview, Northbrook and the surrounding areas

Here’s a good guide.

Glenview, Northbrook, Morton Grove Foreclosure Changes

New Short Sale Guidance

To make it more attractive for the services to accept a sale on defaulted properties for less than the outstanding mortgage balance, the US  Treasury is offering incentive payments of $1,000 per completed short sale. Services will also receive $1,000 for each deed-in-lieu of foreclosure.  Read More…

If you owe more than your house is worth and can’t afford your payments, you might be able   to

sell  it for less than you owe — without having to pay the lender the difference.

Click Here for More Information

]]> http://www.marinajacobsonhomes.com/use-a-short-sale-to-escape-foreclosure/feed 0 http://www.marinajacobsonhomes.com/how-long-do-bankruptcies-and-foreclosures-stay-on-a-credit-report http://www.marinajacobsonhomes.com/how-long-do-bankruptcies-and-foreclosures-stay-on-a-credit-report#comments Mon, 04 May 2009 13:57:46 +0000 Marina http://www.marinajacobsonhomes.com/?p=357 Bankruptcies and foreclosures can remain on a credit report for seven to 10 years.
Some lenders will consider a borrower earlier if they have reestablished good credit. The circumstances surrounding the bankruptcy can also influence a lender’s decision. For example, if you went through a bankruptcy because your employer had financial difficulties, a lender may be more sympathetic. If, however, you went through bankruptcy because you overextended personal credit lines and lived beyond your means, the lender probably will be less inclined to be flexible.

Today’s Real Estate News 4/21/2009

Failed flip flirts with foreclosure
Today’s Real Estate News Provided by Inman News Monday, April 20, 2009

Desperation drives investor to risk credit, deficiency judgment

Benny Kass
Inman News

DEAR BENNY: I am retired. About 18 months ago (before the economic crash), I bought a fixer-upper and renovated it, but have been unable to sell it. If I let the property go into foreclosure, can/will the bank that gave me the mortgage try to get at my other assets (equity in my home, stocks, etc.)? –Irvine

DEAR IRVINE: You are asking about a legal concept known as a “deficiency judgment.” Let’s take this example: You owe the bank $200,000 when you go into default. The bank — after trying to work something out with you — forecloses on the property. At the sale, the property is sold for $150,000. The difference — $50,000 — is the deficiency.

Your state law will provide the answer as to whether your bank can seek a judgment against you in a court of law. Recently, the National Consumer Law Center, located in Boston, Mass., issued a comprehensive report entitled “Foreclosing a Dream.” According to this report, “in 36 states and the District of Columbia, mortgage holders can pursue so-called ‘deficiency judgment’ claims against homeowners even after the foreclosed home has been sold at auction.”

This report analyzes the foreclosure laws in all 50 states. It is available on the Web at www.consumerlaw.org.

However, even in those states that prohibit (or restrict) deficiency judgments, those laws apply to consumers but not investors. So in your case, it is possible that you are not protected. If you let your property go to a foreclosure sale, not only will your credit be ruined for a number of years, but you may be sued by your lender for any deficiency.

Please talk with both your lender and an attorney before you take any drastic actions.

DEAR BENNY: I have a family member living in a condo that my family paid off years ago. The only commitment to living in the property was to pay the condominium fees. If the payments stop, can my property be subject to foreclosure. What can they do to me? –Kim

DEAR KIM: My first question: Is someone paying the real estate tax to the state or county? If not, the property can be sold at a tax sale.

If the condo fees are not paid, yes, the condo association has a number of alternative remedies. They can sue the property owner for the amount owed, or they can foreclose on the property.

While I know that times are tough, if community association homeowners do not pay their assessments, that will seriously impact all association homeowners. The association does not have enough money to properly maintain the property, and property values will continue to decrease, making it more difficult to sell.

I strongly urge all community association homeowners to make their assessment payments timely. It’s your property; don’t let it go to waste.

DEAR BENNY: We did a reverse mortgage on our house in September. We could not keep up with our expenses. The total closing costs were more than $13,000. I read an article that HUD could not charge more than $6,000. When did that become effective? Also, our 49-year-old son and his wife moved into our house with us to pay the utilities and pay on the reverse mortgage. Their thoughts were that they want to buy the house. Can they do this before we pass away or do we both have to be deceased before they can take over the mortgage? –Jeane

DEAR JEANE: Recently, I wrote that reverse mortgage lenders could not charge more than $6,000, based on a new law recently enacted by Congress. I was wrong, and many mortgage lender readers sent me e-mails asking that I correct my statement.

Actually, the new law applies only to the “origination fee.” Lenders cannot charge more than $6,000 for such a fee, but they can impose charges for other costs, including appraisals, title and escrow fees, recording charges, etc.

So your lender probably had the right to charge you that $13,000. This means that if you are interested in obtaining a reverse mortgage, you must shop around and compare costs before you sign up with any one lender. Closing costs are generally not regulated by federal or state law (although in many states title insurance is regulated by the state insurance commissioner) and can vary widely in price.

Your son and his wife have the absolute right to buy your house, but they will not be able to take over (assume) the reverse mortgage. They will have to get their own loan. Interest rates are quite low today, and if your son can qualify for a mortgage, I would strongly urge him to talk with several mortgage lenders.

A good reference for reverse mortgages can be found on the Department of Housing and Urban Development Web site at www.hud.gov. Here is what HUD says about when your loan must be repaid:

A HECM loan must be repaid in full when you die or sell the home. The loan also becomes due and payable if:

You do not pay property taxes or hazard insurance or violate other obligations.
You permanently move to a new principal residence.
You, or the last borrower, fail to live in the home for 12 months in a row. An example of this situation would be if you (or the last borrower) were to have a 12-month-or-longer stay in a nursing home.
You allow the property to deteriorate and do not make necessary repairs.
DEAR BENNY: I want to buy a second house. How much money do I need? I know you must be very busy so any pointers would be very much appreciated. –Julie

DEAR JULIE: I am never too busy to respond to questions in my Mailbag column. You raise an interesting question, not only for buying a second home but for any potential homebuyer.

My first suggestion is to talk with a couple of mortgage lenders first. Explain your financial situation and let them give you an idea of how much house you can afford. Clearly, you don’t want to waste your time (and that of any real estate agents involved in the home search) by looking at homes in the $750,000 range if you can afford to buy only in the $500,000 area.

Once you have a general idea of how much you can pay, then you should start looking for houses. Interest rates and home prices are quite low today, so this is a good time to start shopping around.

DEAR BENNY: A few years ago I listed my house with a real estate agent. It took a little over a year before he found a buyer. The buyer could not come up with the list price so the agent asked if I would carry the balance for the potential buyer. I agreed. The agent initiated a lien on the property, and we signed the papers and sold the house to the buyer.

After about 22 months of paying on the second mortgage, payment stopped. I tried to contact the buyer, but found he had moved. Later I found out that the bank was foreclosing on the property and the lien that I had wasn’t worth anything because the bank had more invested than me. The house was eventually sold to another buyer and I was out of the money that I put up for the second mortgage. Is there anyway that I can recoup my money? –Floyd

DEAR FLOYD: You took back a second trust (called a mortgage in some parts of the country). You indicated that your agent “initiated” the lien; did you use an attorney for this? You should have.

Your attorney would have explained the risks of a second mortgage. As its name implies, it is in second-place position. If the first trust lender forecloses on the property, it literally wipes out anyone in second place including you.

However, there may be some remedy. Normally, when anyone makes a mortgage loan (whether a first or a second) the borrower signs two documents: a promissory note — the IOU — and the deed of trust (or mortgage). Although your mortgage is no longer valid (there is no house to foreclose upon) the promissory note remains valid.

You have the right to file suit against your borrower for the balance owed on that promissory note. Your borrower may not have any money now, but if you can get a judgment against him, that judgment will remain for a number of years (state law will determine this) and you may ultimately be able to collect.

However, if your borrower filed for bankruptcy relief, you may be out of luck. But you are a creditor of that borrower and should have been notified of the pending bankruptcy filing. In fact, it is my understanding that in most states, when the first mortgage lender foreclosed, you should have been notified of the pending sale.

Talk with an attorney about your specific remedies. If your mortgage was not recorded on land records, you may have a case against your agent and/or the title company (also known as an escrow company).

Benny L. Kass is a practicing attorney in Washington, D.C., and Maryland. No legal relationship is created by this column. Questions for this column can be submitted to benny@inman.com.

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Buying a Short Sale or Foreclosure: Click Here

Short Sale.

A short sale occurs when a property is sold and the lender agrees to accept a discounted payoff, meaning the lender will release the lien that is secured to the property upon receipt of less money than is actually owed.

Are foreclosures an option?

A foreclosure property is a home that has been repossessed by the lender because the owners failed to pay the mortgage. Thousands of homes end up in foreclosure every year. Economic conditions affect the number of foreclosures, too. Many people lose their homes due to job loss, credit problems or unexpected expenses.

It is wise to be cautious when considering a foreclosure. Many experts, in fact, advise inexperienced buyers to hire an expert to take them through the process. It is important to have the house thoroughly inspected and to be sure that any liens, undisclosed mortgages or court judgments are cleared or at least disclosed.