Foreclosures can cost MORE!!

So many buyers think the best deals out there are foreclosures and short sales, but they can actually cost MORE!




Here are just some of the additional costs you may incur with a bank/distressed sale:


Survey: Approximately 150.-300. (usually a seller cost)



No Tax pro-ration: (usually 105% of the last tax bill in this area, banks only will usually do 100%)



Usually no negotiation on repairs, so if you do your inspection and it is not satisfactory, you talk with your attorney regarding canceling the contract if it is within the contingency dates, but no one will give you back the 300. or so you may have spend on a home inspection.



Not closing on time can also cost you a Per Diem, as banks usually have this in their contract addendums. This is more of a risk now with underwriting and appraisals taking longer and daily changes in the banking industry.



Appliances: Banks usually say there is “no bill of sale on personal property”, so what you see when you write an offer may not be what you see before closing.



No disclosures: Since they have never lived in or in most cases, have never even seen the property, they are exempt from having to do the usual disclosures.



Deferred maintenance: When someone can no longer pay their mortgage, many times they also have not been able to properly keep up with maintaining their home.



Timing: Many times there is a very long wait to get a response on an offer, and it is usually worse with short sales than REO’s, which are properties that have already been foreclosed on. You could be risking closing on time to be able to take advantage of the first time home buyers credit, which expires 12/1/09.




These are just some things to keep in mind when considering your options. Foreclosures and distressed sales can be great opportunities for the right buyer who is not trying to closely watch their costs, who has a lot of time and patience, and the ability not to get too attached to or emotional about the property. Don't get me wrong, there are a lot of great deals out there to be had right now, but don't make the mistake of thinking that the only good deals are distressed sales. Sometimes, a truly motivated seller with equity in their home can also offer a wonderful buy with less cost, less waiting and less hassles!



It is a GREAT TIME TO BUY REAL ESTATE in McHenry County, Cook County and Lake Counties in Northern Illinois. There are fabulous homes for sale at great prices!


***especially for first time buyers, investors and move up buyers.*** Rates are great, too!

We are having a "HUGE sale" on our large inventory of VERY well priced HOMES!

To Search Homes For Sale, Please Contact Me Directly Or Feel Free To Search On My Website!
My Direct Number at the Office is 847.516.6760



If I can be of assistance to you, please do not hesitate to call or email me. It will be my pleasure! By the way, if you know of someone that could benefit from my high level of service, please call or email me with their name and daytime phone number and I will make sure to follow up and take great care of them. My business keeps growing from your referrals.



There are fabulous buys on the market....now is a GREAT time to buy real estate in IL, especially for MOVE UP Buyers, Waterfront Buyers, Vacation and Second Home Buyers, Investors and First Time Buyers!

NEW $8000. First Time Buyer's Tax Credit and Obama Foreclosure Plan!

Good afternoon :-)

Today we have some great news for all buyers, and especially first time buyers. We now have a NEW $8000 First Time Buyer's Tax Credit! You will find information and links below for the details on this exciting new incentive.

The basics are that the new stimulus package gives an $8000 tax credit to first time buyers and applies to principal residences purchased between 01/01/09 and 12/01/09.

The best thing about this tax credit over last year's 7500 first time buyer tax credit is that it does NOT have to be repaid.

The $7500. credit was more of a no interest loan and this is an actual credit if you stay in your home at least three years.

Another very important point to note is that the definition of a first time buyer is someone who has not owned (or spouse has not owned) a home in the past three years prior to the purchase.

The tax credit is for 10% of the homes purchase price, up to $8000. maximum.

Real Estate is ON SALE...which is GREAT news for ANY buyer!



Each day I review the new and changed listings on our MLS HOT SHEET in my area, and I am just AMAZED at what homes are listed for and selling for. It just makes me shake my head that there are not more buyers taking advantage of this market. And, by taking advantage, I do not mean taking advantage of other peoples misfortunes. I have so many really nice clients that I work with, and more than one has expressed that they are not interested in foreclosures, distressed sales, REO, or short sales, because they felt badly profiting from another person's misfortune. I can certainly understand and appreciate that viewpoint, but if you share this very compassionate concern, you really must know that one of the best things for this housing market and home values and prices is to move all of these homes OFF the market by selling them! This WILL help stabilize the market, which not only helps the Real Estate market, but the overall economy we are now facing.




Please see the links below to read all of the details of this new housing stimulus plan and how this may apply to your personal situation. There are inclusions, exclusions, exceptions, income limits, etc., of course. I would also strongly advise that you consult your tax professionals for the details.



From NAHB: $8000. Home Buyer Tax Credit at a Glance

And.....Frequently asked questions regarding the Home Buyer Tax Credit

And....The Laws Other Provisions


From THE WHITE HOUSE BLOG: Help for Homeowners


From RISMEDIA: Obama Unveils Plan to Stem Foreclosures

And......Will the Stimulus Benefit Homeowners and Buyers?


From H and R Block: Breaking News President Obama Signs $787 Billion Economic Plan, Most Sweeping Rescue Package In Decades. So what is the 2009 stimulus plan and how might if affect me and my family?

AND......Economic Stimulus 2009: Frequently Asked Questions


To Search Homes For Sale, Please Contact Me Directly Or Feel Free To Search On My Website!



I hope you find this information useful. I am only a phone call or email away of you need more help:-)




If I can be of assistance to you, please do not hesitate to call or email me.

It will be my pleasure!

By the way, if you know of someone that could benefit from my high level of service, please call or email me with their name and daytime phone number and I will make sure to follow up and take great care of them.

My business is over 87% referral and repeat clients and I am so grateful it keeps growing from your loyalty and referrals:-)

My Direct Number at the Office is 847.516.6760

Short Sales, REOs, Foreclosures and Pre-Foreclosures:" What Are They and How Do They Work?" Asked My Buyer......

Short Sales, REOs, Foreclosures and Pre-Foreclosures:" What Are They and How Do They Work?" Asked My Buyer......

If only there was an easy and accurate answer to that question, right? Usually we, as the Realtors, can and do help our clients navigate through a plethora of different scenarios in the buying process. It is one of the many ways we bring value to the transaction. We have been through many different situations before and from experience, can help to guide our clients through them. However, as John MacArthur states in his blog post, All that appears short....is not a short sale......, the situation is always different and there really are no industry standards regarding these types of sales. Each situation seems have it's own set of challenges, the biggest, as I see it, being the ability to communicate effectively with someone at the bank or asset management company that is both organized (meaning, for example, they do not lose the paperwork so you have to start over almost every time you call!) and able to make a decision in a timely manner. Whether you are representing the seller or buyer, this seems to be the place where everything stalls, or in some cases, even comes to a screeching halt! You would think, with all of the properties they need to get off their books that they would be motivated to not only review but also respond to offers in a timely manner so that this can be accomplished. But the sad and maddening truth is they usually do not!

I was fortunate enough to represent an excellent seller to work with on a REO property recently that actually had a contact I could pick up the phone and talk to, or email, and was able to get a quick response. This seller, with my help, was able to procure a contract within the first two weeks on the market, yes, even in THIS buyers market. We even had two competing offers for this property. It is amazing what we can accomplish when there is cooperation and communication! This situation was definitely the exception to the "rule". In another case I know of, there has been an offer on the table almost two months, that the lender has yet to respond to.....BECAUSE NO ONE IS ASSIGNED TO HANDLE THE SALE AT THE BANK!!! There was also a second offer as well, so they had two to pick from, but those buyers got weary of the wait and walked away. And that was a higher offer, too, that they lost out on by not responding.

So, my buyer asks me, what is a short sale and what is the process? After defining what a short sale is, which usually means they are selling for less than what is owed....we get to that maddening "process" part of the question. And my most honest and accurate answer is that if, as a buyer, you want to consider purchasing a short sale, REO, foreclosure or pre-foreclosure property, you most importantly have to have the luxury of patience and plenty of time.

*If you want to close on a certain date, this may not be for you!

*If you have to coordinate your selling and purchase closing dates so you are not homeless in-between, this may not be for you!

*If you have the type of personality where you get easily frustrated or like fast resolutions, this may not be for you!

*If you are not a risk taker, and let your real estate attorney explain this to you, this may not be for you!

I have put in offers for buyers that have been responded to in a week to a couple of weeks (this is the GOOD scenario), to as long as three months just to get an answer from the seller. You would not believe how thrilling it can be to get a "heartbeat" from the other side after so much time has passed! Do you really want to put your home search on hold for an indefinite amount of time while waiting for a response to your offer?

There are SO many GREAT opportunities in this market for buyers. This is the BEST buyer's market I have seen in 15 years, so do get out and buy! Short Sales, REOs, Foreclosures and Pre-Foreclosures are not the only "good deals" out there. We have an abundance of both motivated and realistic sellers to also work with that actually respond to an offer on their property and can even get to the closing table, sometimes in less time that it even takes for a lender to even respond.

I am not saying that you should not consider these sales, especially since they are a substantial part of our inventory today, not only in Mchenry, Lake, Kane and Cook Counties in IL, but thoughout the country. I am just giving a bit of caution. There really is no way, in my opinion, for the Realtors to standardize this process until the banking industry gets control of it themselves. In the meantime....let your personality and time frame be the key to if you should consider these types of properties and let your Realtor guide you through the buying process, so you can successfully get to the closing table in a time period that meets YOUR needs.