On May 20 President Obama signed into law the Helping Families Save Their Homes Act. Understandably, primary attention has been paid to the Act's provisions that are designed to help distressed homeowners avoid foreclosure. But the Act has other beneficiaries as well. One group that will receive particular assistance from this new law is those people who – often in good faith – are renting a property that goes into foreclosure. Many times renters of residential properties are caught in the middle of a foreclosure situation. Frequently, they will not be aware of the fact that the owner is delinquent. Their first notice of trouble may be the posting of a sale notice on the property. That may only give them a few weeks warning that something is awry. Moreover, they may not know how this mi... 07/07/2009

In an effort to make their monthly mortgage payment a lower amount, many people look at getting a loan with a longer payback period. While this will probably make for a lower monthly payment, is it really enough to make the longer term a good idea?  Let's look at an example to see how much a longer mortgage term will save per month and how much more it will end up costing over the term of the loan. In our example, the Smiths are going to borrow $100,000 at 5% interest for 30 years to purchase their dream home on the North Shore. This would give them a monthly payment of $536.  To borrow that same $100,000, again at 5%, but for 40 years, the monthly mortgage payment would be $482, a savings of $54 per month. Over the whole 40 years, however, this loan would end up costing a grand total o... 07/07/2009

When a decision is made to make an offer to purchase a home, be sure to go back and take a second look. It is so much easier changing your mind about a home before a contract offer is made than after a contract offer is accepted and signed by the seller. This second appointment would be a perfect time to bring along others who may have an impact on a buying decision, such as parents, friend, contractor, etc. Go through the home a second time and look beyond the owner’s décor, whether it was the home just previewed, the first one seen earlier in the day or the one previewed last week. Why? There are many reasons, but most importantly is seeing if the second look creates the same good feeling as the first, and then taking a closer look to see if there are aspects of the home missed during... 07/06/2009

Be it the real estate market in 2009 or any other real estate market for that matter, the structure of a real estate purchase contract offer can be the difference in it being accepted or rejected. No, the offering price is not the only factor in negotiating a contract to purchase a home. Regardless of the number of pages in the sales contract, a contract offer can be broken down into 3 separate parts which can be important to the seller: Price, Terms and Conditions. Each has to be satisfactory in order to obtain seller acceptance. In some situations, full price offers are not acceptable due to the buyer's terms and conditions in the contract offer. In other instances, contracts get accepted and signed even though the offer was much lower in price than other competing offers, but was mor... 07/02/2009

Even when consumers are purchasing a brand new house in Northbrook. Glenview or on the North Shore, it doesn't always mean there will be no defects. And when problems arise, it's not always easy to get the builder to come back and make things right. Here are a few tips to keep in mind that can help protect you from the possibility of home defects in your new home. 1. At least two weeks before closing, hire an inspector to look over the new house. Go with him and ask any and all questions that you may have or that may occur to you during the inspection process. If problems are found, bring them to the attention of the builder right away. With today's poor market for new homes, builders will be more reasonable and willing to fix things if you find the problem before closing. Make sure the... 07/02/2009

The key to understanding what's happening for housing and real estate right now is to remember this: In a recovery that's just getting going, don't expect all the economic arrows to point the same way at any given moment. The latest numbers on housing sales, prices, mortgage rates and foreclosures are great examples of that point: Sales of existing houses came in on the upside for May, with a 2.4 percent increase nationally over the month earlier. That's the first consecutive monthly gain in resales in the U.S. since way back in September of 2005. But then again -- last month also saw sales of newly-constructed houses fall by six tenths of a percent, as low-priced foreclosures swamped the market and pulled buyers away from builders' showrooms and subdivisions. Meanwhile, prices in both ... 07/01/2009

In a move to ward off foreclosure, a luxury condo developer has turned the units intended to sell for more than a quarter million dollars into a homeless shelter with the help of a New York-based nonprofit. The Brooklyn units come complete with granite counter, terraces, marble bathrooms and walk-in closets, according to the New York Daily News, and the city is paying out hundreds of thousands of dollars per month ($90 per unit per night) to house homeless families in the city. "City officials said the condos - which couldn't attract buyers in the fizzled housing market - are part of an effort to help an "unprecedented" number of homeless families who have ended up on the street because of the tough economy," according to the report. It's the first time luxury condo has gone homeless sh... 06/30/2009

These days many prospective homebuyers are searching the Internet for their dream home. In fact, 87% of those searching for a home now do it online as opposed to 84% in 2007 and 80% in 2006, according to the 2008 National Association of Realtors Profile of Home Buyers and Sellers. In 2008, 32% or homeowners learned of their home on the Internet while another 34% learned of their new home from a real estate agent. Only 2% learned of their home on the Internet in 1997, and a whopping 50% found it through a realtor that year. While finding your new home in Wilmette or Glenview on the Internet may be what everyone's doing these days, there are still some things to watch out for if that's the path you decided to take. 1. Don't assume you can find that perfect home on the North Shore all by y... 06/30/2009

Fannie Mae's and Freddie Mac's controversial new appraisal rules are now coming direct attack by the biggest lobby on Capitol Hill - the National Association of Realtors. Though the association is saying nothing publicly, officials have confirmed to Realty Times that they are gearing up for a fight in Congress and elsewhere to derail the “Home Valuation Code of Conduct” (or HVCC) for 18 months. The code, which took effect May 1, has been widely criticized for raising appraisal costs to consumers, encouraging the use of inexperienced appraisers willing to work for rock-bottom fees, and for giving too much control to unregulated “appraisal management companies,” some of them owned by major mortgage lenders. The Realtors campaign is targeted initially at Fannie Mae's and Freddie Mac's chie... 06/29/2009

Most clothes dryer exhaust systems inspected have a problem that needs to be corrected so the dryer runs efficiently and safely    Chicago, IL-Mory Matias of Dryer Vent Wizard, a leading dryer vent cleaning company, has noticed the biggest safety hazard in clothes dryers are the ducts which run from the back of the dryer to the outside of the home.  Mory services the North Side of Chicago and the North Shore Suburbs of Cook and Lake Counties in Illinois.  "When customers complain about dryers taking too long to get clothes dry, this is a warning sign that indicates restricted air-flow in the dryer vent system," said Matias in a recent interview.   When Mory inspects dryer exhaust and venting systems there are at least 10 factors to look at, including ducts, vents, airflow and the amount... 06/27/2009

Leaking toilets result in six billion gallons of water loss every day according to Richard Quintana, founder of AquaOne Technologies. That astonishing figure is a real problem with financial and physical effects. Here’s how the water gets washed away. Quintana says there are more than one billion toilets in the U.S. and, according to the American Water Works Association, one out of five leaks. The toilets can lose anywhere from 30 to 500 gallons of water daily just from a small silent leak that is the size of a staple.According to a report from the Associated Press, handyman jobs are increasing for practical repairs like leaking toilets. These days, in a tough economy, homeowners are trying to preserve their homes and to conserve wherever they can. But, Quintana says it’s not just water... 06/26/2009

Now, mortgage modifications can include second mortgages -- not just first mortgages -- and cash incentives are sweetening short sale deals, thanks to new efforts by the Obama Administration.The new efforts give some homeowners a second shot at a home-saving loan modification, especially if they were originally turned down -- or turned off -- because the second mortgage (piggy back, home equity loan or line of credit, etc.) impeded the process.Other homeowners may now be able to take the short sale escape route from unaffordable mortgages that could otherwise wind up in foreclosure.Second mortgage modificationsLoan modifications are designed to make the home loan more affordable, typically by reducing the interest rate, extending the term of the loan and, less often, by reducing the pri... 06/25/2009

With the drop in home prices, it's been a buyer's market for some time now. Things seem to be starting to stabilize a bit and the amount you'll pay for a house in Glenview may be about at it's lowest point by now.  Many lessons have been learned from this and a few rules that were golden in days gone by are being brought back. They were a good thing to do several years ago, and time has proven that they're a good thing to do now. Here are five of these rules to help home buyers in Wilmette, Northbrook or anywhere, succeed with the American dream of owning your own home:  1. Make a larger down payment if possible. Much of the problems the last few years has come from low or no down payment deals. If you can make a down payment of 15% to 20%, you'll get the benefit of lower monthly paymen... 06/25/2009

It might sound a little surprising, but in investment real estate, residential lots are hot, especially in markets that saw the highest peaks and the worst busts during the past three years.On Florida's west coast, Gary Tasman of Cushman & Wakefield affiliate Commercial Property Southwest of Florida, says bulk purchases of developed building lots are “really brisk right now” with prices in some local areas nearly doubling from their low point.The reason: Home builders are now looking ahead to 2010 and 2011. They see the rebound already taking shape. And they need well-located lots ready to go for the future construction they're planning.The best deals are bank-owned lots taken back in foreclosures from earlier, unsuccessful developers. They often come with bare-bones pricing, but Tasman... 06/24/2009

The most bearish of Wall Street economic analysts have made the same point for the past 18 months. There's no recovery or rebound in the housing market, they said, until home builders start building again. "Show us positive numbers on new home starts for a few months," they say, "and then we will we agree that the housing market has finally turned around." Hey there bears, here are the numbers you asked for: Last week the Commerce Department reported an unexpectedly large increase in new single family home starts during May - up by seven and a half percent. That was the THIRD consecutive monthly gain in single family starts. Total starts, including multifamily apartment starts and condos, were up by 17 and a half percent!! Not only were starts up a lot, but so were other key indicators ... 06/23/2009

When looking for a new home in Glenview or on the North Shore, be sure that perfect house you saw doesn't have some not-so-perfect features. Consider the following:  Lighting: Are there street lights that may wind up shining directly into your bedroom window? Or is the street so dark at night that you'll feel unsafe?  Commuting: Take a ride from the prospective house to your place of employment. Is it a longer commute that you anticipated? Are there trouble spots where you may wind up sitting in traffic for a half hour every afternoon? Sex Offenders: Check out The National Sex Offender Public Website or KlaasKids to see if there are any sex offenders living in the neighborhood.  Area Crime: Go online or to the local police department and find out how much crime is in the neighborhood. A... 06/23/2009

There's no question about what had Washington buzzing the most last week - and that buzz is likely to continue for months. It was the unveiling of President Obama's far-reaching plans to reform the U.S. financial regulatory system - including important changes affecting home mortgages and real estate. Though the plan is aimed mainly at banks, hedge funds, Wall Street and insurance companies , it also focuses on protecting consumers who take out mortgages, credit cards and other forms of debt. Obama wants to create a new super-department - called the Consumer Financial Protection Agency - that would have the power to review, regulate and even ban loan products considered too risky for the mass market consumption. It would be able to oversee first and second mortgages marketed by any sour... 06/22/2009

It’s not always what buyers can see in a home that causes them to want to buy it or not. Sometimes it’s the way the home feels. I’m not talking about staging, the size, or how spacious the home is, although those factors are important too. In this column I’m focusing on how buyers’ allergies may be affected when they tour your home. “We have about 300 million Americans and about 60 million of them have allergies or asthma,” says, Mike Tringale, Director of External Affairs for the Asthma and Allergy Foundation of America (AAFA). Allergy problems can be debilitating for sufferers. Many will go to great lengths to avoid any possible influences that might bring on symptoms. Allergies and asthma are increasing, Tringale says, “some of that may actually be because of the houses we’re living ... 06/19/2009

Everyone starts househunting in the spring, so what better time to get your house in order if selling it is what you want to be doing this spring. If you read my blog a few days back called "Staging the Inside of Your Northbrook Home for a Quick Sale", you already know a bit about staging your home on the inside for a quick sale. Today we have some tips for staging the outside of your Glenview or Wilmette house to improve its curb appeal - and the speed with which it can sell.  Find a good lawn care company who knows all the ins and outs of what it takes in your part of the country to get your lawn growing and green and looking its best. Or find your own high-quality weed killer that's full of micronutrients to feed the lawn and do it yourself. Don't mow it too short either. Three inche... 06/18/2009

[Note: To follow is an excerpt of an interview with Michael A. Anderson, CES, Certified Exchange Specialist. Michael is president of Exchange Services, LLC, an affiliate of Zions Bank that serves the QI needs of the affiliate banks and national customer base. To listen to the show archive or download an MP3, go to www.IncomePropertyInvestmentTalk.com/052009.] Mosca: Section 1031 of the Internal Revenue Code provides a series of different things for different types of investors. What is a 1031 tax-deferred exchange as it relates to the real estate investment and why is it so valuable? Anderson: The point of owning real estate is to have it appreciate in value and if you want to change that or sell that property, you may have a substantial tax liability as a result through capital gains t... 06/18/2009