Myth: Checking a credit report can either damage or lower your score. A credit report can be conducted by you or someone like an employer as many times as desired with out having any impact on your credit score. Reviewing your credit report will never change your credit score. Just make sure that reports are retrieved through the bureaus or a legitimate score seller.

Myth: Age, sex, and income are factors that affect your score. None of this information plays a role in determining your score. A higher income may make it easier to pay off debts, but income and net worth have no impact of credit scores.   

Myth: A credit score can be destroyed by shopping for a loan. When seeking to extend credit, too many inquiries can have a negative impact your credit score. However, when several inquiries are made by the same type of lender with in a 14 day period they only count as one inquiry against your credit.

Myth: Your score can be hurt by credit card offers. When companies offer you their credit cards it does not have any affect on your score. Unless, your take advantage of all the offers and carelessly use all of the credit available. The number of credit cards a person manages does not matter. The important thing is maintain a low ratio of used to available credit.

Myth: Credit scores of married couples are shared. A credit score can only belong to one person, just as one person can only have one score. A married could does not share a credit score, but their scores could have an affect each others. When opening a joint account, the information accumulated from that account’s activity will be reflected on both people’s credit report. If all of the couple’s accounts are joint, then their scores will be somewhat similar.

Myth: Closing unused accounts improves credit scores. Unused accounts most likely contain available credit, which is an important part of a credit score. Closing unused accounts removes available balances from the equation. This causes your ratio of used to available credit to increase, ultimately affecting your credit score.

Myth: Paying off bills is a quick way to boost credit. Over time, a good record of properly paying bills will improve credit. Credit reports reflect your long term history, scores do not change overnight.

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For some the term means that lenders may be holding on to foreclosed properties for fear of flooding the market. Others believe that it describes the high number of homes in the foreclosure process which will eventually go up for sale. And still a third group includes the possible flood of properties which will hit the market when homeowners who have been holding off selling finally decide to do so. It is generally agreed, however, that the shadow inventory of Chicago real estate includes all delinquent loans and real estate owned (REO) properties that have not yet reached the market. In any event, there is a strong belief that a very large number of presently unlisted homes will soon cause an overabundance of available properties and thus directly affect prices.

Is There A Glut?

When this glut will occur or its actual impact is also debatable. The number of homes entering foreclosure has recently abated as owners and lenders have pursued loan modification and short sale alternatives. However, as lenders are more efficiently clearing out the backlog of properties in distress, the foreclosure process has quickened, and more and more REO’s are becoming available for purchase.

Many analysts use the “tip of the iceberg” analogy to describe the current situation, feeling that a massive number of distressed properties and underwater loans sits just below the surface. Some believe that the number of potential homes for sale greatly exceeds the number currently on the market, and a Standard and Poor’s recent report predicts that, at the current rate of sales, it will take at least three years to clear out all shadow inventory.

What Does It Mean?

So what does all this mean for Chicago real estate? Actually, two very different viewpoints are emerging in this regard. The first can be seen in a somewhat positive light: because business will increase in the next year, potential investment opportunities will also rise, and sales, too, will increase. It is also possible that competitive bidding will drive prices up, thus averting a second housing market collapse. On the negative side, however, many industry “experts” predict that the weight of the influx of homes for sale will drive prices down at least another 8% by the end of 2010.

And then add to the mix the unknown variable of the unemployment rate, and the future of real estate sales is really anybody’s guess.

So what does this mean for you? If you purchased your Chicago real estate by the April 30^th, you now have until September 30^th, 2010, to close on your property. (Note: the new legislation applies only to those who did so. The purchase deadline was not extended.) Other than date changes, the terms of the original program still apply, allowing tax credits of up to $8000 for first-time buyers and $6500 for repeat buyers.

Included in the current bill are special provisions for members of the U.S. military forces, the foreign service, and the intelligence community. For those who fall into these categories and have been ordered on an extended (90 days or more between after December 31, 2008, and before May 1, 2010) tour outside the United States, the new extension allows for a binding contract to be in place on or before April 30, 2011, and a closing to take place on or before June 30, 2011. In addition, a person who is forced to return to the U.S. for medical reasons before completing the 90 day tour may qualify for a one year extension.

What do you need to do to claim the credit for your Chicago real estate purchase on your taxes?

• If your 2009 return has not yet been filed, claim it on Form 1040 for tax-year 2009. While you cannot file this return electronically, you can still use IRS Free File to prepare and print it. When you send it in, you must attach special documentation and IRS Form 5405.
• If you have already filed for 2009, claim the tax credit on an amended return using Form 1040X. Remember to check the above site for specific documents to include with your new return.

• You may also wait and claim the credit on your 2010 tax return.

According to figures generated by MRED, the regional MLS, year-to-date sales of Chicago condos through June 2010 are:

• Up 42% in total dollar volume, to $1.8 billion

• Up 45% in units closed, to 5,630

• Down 6% in median sales price, to $263,700

• Down 6% in average market time, to 148 days.

Comparing June sales to May:

• Units closed were up 26%, from 1,083 to 1,365 closings

• Dollar volume was up 27%, from $341 million to $434 million

• Median sales price was up 2%, from $264,900 to $270,000

• Average market time was flat, at 144 days

The Home Buyer Tax Credit expired April 30. These purchases had closing deadlines of June 30 which may be the reason for the dramatic incrase in sales for the first half of 2010. The second half of the year will be a better indication of where the market is heading.

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Chicago Foreclosure Geographical Comparison

May Chicago foreclosure activity was lower 0.07% higher than national statistics, 0.03% higher than Illinois statistics, and 0.04% lower than Cook county numbers.

Chicago Foreclosure Activity by Month

The number of Bank-Owned Chicago homes decreased from 1,312 homes in April to 1,106 in May. The number of Auctioned Chicago homes also decreased from 1,271 to 907 and Pre-foreclosure acitivity dropped for 1,982 to 1,805. The six month Chicago foreclosure trend is falling.

Are you or someone you know behind on your mortgage payments and facing a Chicago foreclosure? You do have options. A foreclosure is not the only way. A short sale may be the answer to saving you, your family and your home. I am a Certified Distressed Property Expert (CDPE). I have the training, knowledge and experience needed to help save your Chicago home from foreclosure. The clock is ticking. Don’t hesitate. Give me a call for a private consultation.

Learn more about selling your Chicago home.

What’s your Chicago home worth?

A home inspection is of primary importance because it allows you to obtain an unbiased professional assessment of all the components of the property. It is a step necessary for you to decide if you will stay with your original offer, renegotiate based on documented issues and needed repairs, or back away from the purchase of that piece of Chicago real estate altogether.

Selecting a qualified inspector is vital. Your realtor can provide you with the names of reputable firms, or you can go online to research services offered and credentials. Specific information you should know about the inspector and the inspection process included the following:

      1. Credentials and background: Is he/she licensed in your state? Is he affiliated with any respected organizations such as the American Society of Home Inspectors? Membership in these groups requires that inspectors follow strict guidelines about ethics and continuing education. Be sure to inquire about experience and training. A construction-based background is a plus, as is attending a college with an emphasis on construction or attending a home inspection school.

    2. Fees: Although you don’t want to spend money unnecessarily, this is not a place to scrimp. Your house purchase is a very large investment, and you need to know as much as you can about it. Do remember that money spent on a quality inspection now will be returned to you by avoiding unexpected costly repairs in the future.  The price of an average inspection varies depending on the age, size, and condition of the house. Some inspectors base their fees on the list price of the Chicago real estate. Get estimates from all you contact, but don’t assume that the lowest priced is the best choice for you.

    3. Type of report: Some inspectors use computer generated onsite reporting, some a handwritten checklist, and others a computer generated report you won’t receive for few days. By and large, the last option is in your best interests since it gives the inspector time to review his findings, look up any questions he may have, and send you a detailed, descriptive report. He should also be able to provide you with pictures of the problem areas. Feel free to ask him for a sample report.

    4. The actual inspection: Make sure that you will be allowed to accompany the inspector and ask questions as he checks out the house and grounds. This is a good time for you to become familiar with the home‘s inner workings, locate shut-off valve and breaker panels, and pick up tips on operating and maintaining different systems.

A thorough home inspection of an average home should take between 2 ½ and 4 hours and should cover both internal and external components of the property. Major items examined should include:

            a. Siding, foundation, brickwork, etc.

            b. Insulation

            c. Deck, roof, garage

            d. Attic/basement

            e. Driveway and walkways

            f. Electrical system

            g. Plumbing

            h. Doors and windows

            i. Heater, air conditioner, and hot water heater

            j. Ceilings, walls, and moldings

Having your Chicago real estate inspected will allow you to make an informed decision about the purchase of a house and will provide you with both essential knowledge and peace of mind.

HAFA helps families quickly sell their Chicago homes by giving them pre-approved short sales terms before listing the property. They are fully released from future liability for the first mortgage debt, and can receive $1,500 for borrower relocation assistance. HAFA also allows investors and servicers to receive financial assistance for administrative costs, processing fees, etc. The program sounds simple, but is actually quite complex with many guidelines and rules. HAFA officially began on Monday, April 5, 2010 and will end on Monday, December 31, 2012.

Here you can watch ‘An Animated HAFA Story’, an informative video explaining HAFA…

I am a Certified Distressed Property Expert (CDPE), trained in helping families in distress avoid foreclosure. Are you or someone you know behind on mortgage payments? You do have options! A short sale may be what is needed to save your, your family and your credit. Please contact me anytime for a private consultation.

A knowledgeable and understanding real estate agent who is familiar with the needs and desires of the 55+ set, combined with the services of an attorney who specializes in both real estate and estate planning and an accountant who deals with senior tax implications, can be invaluable to you in looking at all aspects of selling your Chicago real estate and helping you determine what is best for you. Senior Expert Margie Behr also advises that you think about taking out a home equity loan before you put your house on the market and that you involve your whole family in the decision-making process.

If you do decide to sell, BankRate.com cautions you to first get a written market analysis and a financial evaluation which will help you and your team of advisors address the realities of the market, your investments, and tax objectives.

Once underway in the selling process, you‘ll have to prepare your Chicago real estate for showing to potential buyers. That includes removing, storing, or giving away some large furnishing, heirlooms, or collections, and making your home as “clutter-free“ as possible. If this task looms too large for you to deal with by yourself, your real estate agent can provide you with qualified, responsible people who will make the burden much lighter. Remember that a well-maintained property with plenty of open space makes the house seem larger and shows off its assets.

The exterior, too, needs attention so that its “curb appeal“ will make shoppers want to come inside and investigate further. Keep lawns mowed, bushes trimmed, and flower beds fresh and colorful. Walkways, siding/brick, and roofs should be in good condition and entranceways must be attractive and inviting.

What and where to buy? Bankrate.com stresses the importance of looking at all your options and comparing them to your physical needs-now and in the future. Carefully consider the benefits to a one-level home or a building with an elevator. Would a condo with no maintenance required be best for you? Have you thought about a retirement community? You’ll need to determine the value of being close to friends, doctors, churches, stores, public transportation, and facilities which foster leisure pursuits. Do you golf? Want to be involved in a recreational senior center? Will you want trails or bike paths nearby? Be sure to visit areas you are seriously considering--often and at different times of the day. Talk with current residents, drop in the stores, walk around the community with family members or a friend. You can also do some reconnaissance online at ChicagoCityHomes.com which give you very useful demographic information re: income, population, employment, crime rate, etc., or you can Google a specific neighborhood.

Two final precautions: 1) don’t commit to a vacate date on the Chicago real estate you’re selling until you have secured a new residence. You don’t want to have to move twice! 2) if family is really important to you, don’t move too far from them. Many grandparents have regretted their move so much that they have moved back to be closer to the children!

As you go through the process of relocating to/from your Chicago real estate, view it as an adventure, a chance to view the world from a different setting, meet new people, and make new friends--and enjoy the journey!

So what does all this mean for interest rates and home mortgages? Well, if we are truly coming out of the recession, it means interest rates may soon begin to creep up as the Federal Reserve tries to keep the economy stable. The Fed uses its rate-setting to try to balance unemployment and inflation; normally this means lowering rates during a recession to give the needed boost to the economy and then raising rates during the recovery to keep inflation at bay.  The Fed has bought up toxic mortgage-backed  securities  to help stabilize banking.  As lenders become more stable, the Feds will be less involved and the interest rates will reflect market forces.  This will push up interest rates.

The unknown is when and how much the rates will go up. The time to take advantage of these low mortgage rates is now!

At the moment, rates as low as 4.75% are available at some banks for a 30 year fixed mortgage, with lower rates available for adjustable rate mortgages and higher rate ones available for jumbo loans and FHA loans – if you can put 25% down.

With any loan you choose, you need to be concerned with the total lower cost of the loan to you.  The goal is to minimize your out of pocket expense as much as possible at closing and with your monthly payment.  How much do you have available for a down payment? How much can you pay monthly?  Are their points involved in the loan? Are there other fees involved?  Your credit rate may influence what you qualify for. The chart below shows how wide the spread can be based on a loan of $417,000 for all loan types except the Jumbo ARM, that loan is calculated at $500,000.

As you can see, the range is significant. So how can you know which rate and loan is right for you? It all depends on your situation.

·       If your plan is to stay in your home for the long term, the and have the conventional 20-25% to put down, a conforming 30 year fixed loan will probably be your best choice if you can obtain a package with a low rate, no points, no fees, and a low payment.

·    If you know your circumstances will change in the next few years, the ARM loan is a good choice for you. For example, if you are transferred every four or five years or if you expect your income to increase, you should take advantage of the better rate.  With an ARM, you need to familiarize yourself with a few basic terms:

1. The index rate. Most lenders tie ARM interest rates changes to changes in an index rate. Lenders base ARM rates on a variety of indices, the most common being rates on one-, three-, or five-year Treasury securities. Another common index is the national or regional average cost of funds to savings and loan associations.
2. The margin. This is the percentage points that lenders add to the index rate to determine the ARM's interest rate.
3. Interest rate caps. These are the limits on how much the interest rate or the monthly payment can be changed at the end of each adjustment period or over the life of the loan.

A loan with a 5/1 ARM would be fixed for five years, then adjust annually up to the amount of the margin until it reaches the rate cap.

·   With an ARM, you can get more home for your dollar.  For example, for an $1,800 monthly payment, you can qualify for a $388,000 mortgage with an ARM loan vs. one for $340,136 with a conventional one.  These mortgages have gotten a bad reputation throughout the mortgage crisis for resetting to payments that are unexpectedly high, but ARM are indexed to have a periodic and a lifetime cap; depending on the terms, they may be convertible into fixed rated terms 

·      If your credit score is lower, or you lack the 20-25% downpayment, then the FHA 30 year fixed mortgage is the better plan.

In certain circumstances, you may have to pay points.  Though it preferable to not have to come up worth extra cash at closing. It can be worth it to do so to secure a lower interest rate.  The points are deductible on the current year’s tax return.  It is usually better to pay points than other fees, which are not deductible.

The best interest rates we have seen in years are still available! How long they will last is unsure. If you want to take advantage of these rates before they are gone call Karen Breen Elia or Louis Elia at ChicagoCityHomes! They can help you with information on the current interest rates or mortgage loan types. Even more important, ChicagoCityHomes can help you find the right Windy City home for you!

If you are a first-time homebuyer in Illinois, you may qualify for both loans. You can utilize the tax credit loan with the Illinois Housing Development Authority's new Illinois Home Start Loan program. The Home Start program offers a 30-year fixed rate amortized loan. If you take advantage of the zero-interest, short-term Home Start Tax Credit Advance Loan, you can use it for a down payment. The Advance loan will be paid back when you earn your tax credit in 2010. The maximum loan amount under the Home Start Advance Loan is $6,000 or 3.5 percent of the purchase price, whichever is greater.

The Home Start 30 Year Fixed Rate Loan is insured by the FHA and serviced by U.S. Bank Home Mortgage. There are income guidelines based on your county. For Cook County, the income guidelines are $74,900 for a Household of 1-2, and $86,135 for a family of 3 or more. The terms of the loan are subject market changes, but on August 18, 2009 the interest rate was at 5.75 percent. Now remember, this can be used at the same time as the second loan: the Home Start Tax Credit Advance Loan. You can purchase a home NOW and use your future tax credit for the down payment.

There are a few other terms to be aware of. The first step is to qualify for the Home Start 30 Year Fixed Rate Mortgage.  Homebuyers must complete an educational course with a certified HUD counselor. The tax advance MUST be paid in full no later than June 30^th, 2010. If you fail to repay the loan, it will be modified to a ten year amortizing loan at 0.5 percent ABOVE the interest rate on the 30 year mortgage. Lastly, Illinois veterans and active duty service personnel do not have to be first time home buyers to qualify.

But time is running out on this program!! These programs end at midnight on November 30^th. Most mortgage brokers will agree, you should have your property under contract at least 45 days BEFORE the deadline, so by October 15^th. The program goes by the date of the closing and not by the date of the signed contract! For information on the Federal Tax Credit Deadlines, take a look at http://www.yourillinoishome.com/.

If you want more information you can check out the Illinois Housing Development Authority, you can also search for lenders in your area. Now more than ever you need an agent with experience in Chicago Real Estate! Call Karen Breen Elia or Louis Elia at ChicagoCityHomes your local real estate experts for Chicago's North Side!

Everyone knows the real estate market has faced turmoil in the last two years. While some markets still haven't quite hit bottom, there is good news in Chicago! Condo sales in the Windy City are showing improvement in dollar sales volume and have seen a decrease in days on the market. Condos make up a large portion of the Chicago skyline; you can find large concentrations along the lake front and most other downtown neighborhoods such as the South Loop, West Loop, Greektown, River West, Gold Coast, River North, Streeterville, Lincoln Park, Old Town, Lakeview, Wrigleyville, Buena Park, Bucktown, Wicker Park, East Village, Ukrainian Village, Andersonville and Edgewater neighborhoods.   They offer the home buyer a wide variety of housing types; from the high rise with the much sought after views of magnificent Lake Michigan and the Chicago skyline, to the new construction low rise elevator buildings, to the rich detail of vintage walk ups. 

Condos are a vital part of Chicago real estate. Each year, between 15,000 and 20,000 condo units change hands in Chicago! Recently, some of Chicago's most rapid growth has been along the Chicago River, and in the Near West, West and South Loop.  While lofts are very popular, many buyers are finding condos in converted apartment buildings are generally  about 20% less expensive than new-construction. These vintage buildings provide Old World charm for their residents. While there has been lots of new construction, you can have too much of a good thing, and that can mean good news if you are looking to buy a Chicago condo!

In previous years, there was a huge spike in new construction when it came to condos. Due to the housing bubble bursting, buyers can take advantage of the huge incentives being offered! In 2009 alone, there are 4700 new constructions scheduled to be completed. As of this year's first quarter, less than 60% were under contract. With the new lending requirements for condominiums, many developers are pulling out all stops! They are offering incentives like general upgrades, appliance upgrades, free deeded parking,  and even extreme price reductions! Some developers are even offering special financing packages through their own lenders.

It does seem to be working. For the last three months, condo sales have shown improvement. Just from June to July, the dollar volume went up by three million dollars and sales prices have gone up! Probably the best news is that days on the market have gone down by 13%. With Chicago being the third largest condo market in the nation, this is indeed good news!!

With so many good things happening in the Chicago real estate market, don't miss your opportunity to get a great home at the right price! Interest rates are at their lowest in years! And don't forget, time is running out on the $8000 tax credit!! If you want to find your perfect Chicago condo, call Karen Breen Elia or Louis Elia at ChicagoCityHomes! Whether you are looking for a fabulous condo or a luxury home in the Windy City, they are your local real estate experts!

What are some key indicators it is time to get off the fence and buy? The first indication is the $8000 tax credit program which is soon to expire. If you want to take advantage of the program, you should be in the process no later than October 15^th to insure you will meet the December 1^st deadline! But there is more than just the tax credit program to consider.

Interest Rates: This is one of the major factors in deciding it is time to get off the fence. Of all the incentives to purchase a home now, the low interest rate is the most conducive. Tax credits are wonderful, but your interest rate is with you for the remainder of your loan. In timing your jump, you must consider these historically low rates. John Tuccillo, former Chief Economist for the National Association of Realtors and columnist for The Real Estate Professional, says the "Home loan rates have stayed historically low since the program (Federal Housing Program) began in January. So, this is another variable that could push Bonds down and home loan rates up in the future." (Mortgage Success Source, LLC) Interest rates are at some of the lowest in 40 years! You do not want to miss these rates!

Some of the other information you want to look can be found on your MLS listings. How long are houses staying on the market. What is the fastest moving price bracket? How fast are low priced houses closing and are more luxury homes stagnating on the market? Right now you see low and moderate priced homes moving at a faster pace than before. Home sales are picking up in these price brackets as the bargain hunters are out in full force. They recognize the signs the real estate market is stabilizing. Just like you should take note when they have stopped buying, you need to recognize the time may be right when they begin to return to the market.

Lastly you want to look at your local market, not just the national scene. This is where having a LOCAL real estate professional is critical. They can look at the market and help you interpret the signs for your area. For example, here in Chicago, historically home prices and values track inversely to employment trends. Job stability not only makes it possible for someone to purchase home, but can also cause an increase in commercial real estate sales as well. Chicago also tends to trend BEHIND the national numbers, so an increase or loss in jobs can happen slightly later here.

So, if timing is everything, why are you still sitting on the fence? If you are ready to jump into the real estate market call Karen Breen Elia or Louis Elia at ChicagoCityHomes! They can help you interpret the signs to know if the time is right! Don't get left on the fence! These historic low interest rates will not stay low for long and housing prices will begin to go up!

Let's take a look at who qualifies for the tax credit. Under this Act, a first time homeowner is someone who has not owned a principle residence in the last three years. They will check under both spouses name for married couples to confirm that neither has owned a home within the specified time frame. First time homeowners, as defined above, can qualify for a tax credit of 10% of the purchase price of the home with a maximum credit of $8000. The home purchased can be a new home or a resale, single family, condo or townhouse.   

There are income limits as well. To receive the full tax credit, a single taxpayer's maximum income is $75,000. $150,000 is the maximum for married taxpayers who file jointly. Beyond that, the tax credit is calculated by income, up to $20,000 above the maximum. Just as an example, if a single taxpayer has an income of $95,000 they will not qualify for any of the credit. If they have an income of $85,000, then the credit amount is calculated according to that income. Your tax advisor can help you figure the actual amounts based on your income, if you are over the full credit income guidelines.

Because it now takes longer to get all your paperwork and loan documents approved through underwriting, you need to make sure you have the process started no later than October 15^th to insure you will close before the deadline! Don't delay.  Take advantage of this government gift.  Remember, that this is not a tax deduction, but a tax credit which directly reduces your federal income tax liability . If you have questions about the American Recovery and Reinvestment Act or if you are ready to start looking for homes, call Karen Breen Elia or Louis Elia at ChicagoCityHomes! These local real estate experts can help make your dream of owning your first home a reality!

First, the key to understanding all this is HERA, the Housing and Economic Recovery Act of 2008. This act was passed on July 24, 2008 and signed by President Bush on July 30. The act was primarily designed to address the sub-prime mortgage crisis and the lending practices that precipitated it. The bottom line of HERA, was to change regulations and help endangered homeowners. If a lender was willing to lower the principal balance of a mortgage to 90% of the home's current appraisal, the FHA would back up to $300 billion in new 30 year fixed rate mortgages. It was only applicable to a primary residence. Also included in the act were tax credits that worked like interest free loans. Homeowners would pay back the credit over the next fifteen years. These, of course, are just the highlights. You can find more answers at the US Department of Housing and Urban Development.  The Act was expanded with two important updates this year that regard appraisals and customer notifications of changes of lender terms.

HERA was also intended to prevent the sloppy and incomplete lending practices that, in part. led to the crisis.  As a result, the way lenders process pre-approvals and final approvals have changed. Additional time mandated for customers to absorb and ponder mortgage notifications lengthen closing times.  What used to take hours can now take days; what used to take days can now take weeks.

Let's start with pre-approval. It used to be that lenders would pre-qualify you for a loan; now sellers want pre-approval.  Don't even bother with pre-qualification, which is an estimate of how much you will qualify for based on what you have told the lender.

For pre-approval, the lender will ask for documents such as:  Photo ID, most recent W-2's, current pay stub (possibly for the last 6 months), and some may ask for information on any other outstanding loans. This information will be submitted to automated pre-approval process for the lender. Once you find your home, your information, along with any changes, will be submitted for a final approval with an actual underwriter. This process can take up to several days depending on how many other loans the underwriter is reviewing. Before the housing crisis, final approval was processed through an underwriting program and an actual underwriter may not have even reviewed your application.

As of May 1, 2009 appraisers were further shielded from outside influences, while it was mandated that borrowers received copies of their appraisal report at least three days before closing on their property.  Effective July 30, additional HERA measures dictate that the closing cannot take place less than seven business days after the home buyers receives mortgage disclosures.   Prior to receiving the disclosure, the buyer does not have to pay certain fees upfront.  If the APR on the loan changes more than .125%, the buyers must get a revised Truth in Lending disclosure, which will add at least another three days to the time when closing occurs.

On a final note, for a foreign national to consider purchasing a property, pre-approval MUST be completed before even beginning the process of looking for a home. Some realtors have gone as far as requiring a pre-approval letter before showing any homes. There are several requirements added to the list for a pre-approval in this case. The first obstacle is Visa status. If you are a foreign national you must hold a long term visa or your country of origin must be on the Visa Waiver program. Secondly, you must be able to transfer bank funds into the United States. You need to check with your bank to make sure there are no limits on what you can transfer to the US. Finally, the most important point is that you must have a valid passport.

While all these changes may seem intimidating, working with a real estate professional will make the whole process smoother. Now more than ever, a great agent is worth their weight in gold!! Contact Karen Breen Elia or Louis Elia at ChicagoCityHomes for help you get prepared to buy a home and find one for you on Chicago's North Side.  If you are having problems paying your mortgage, they are also Certified Distressed Property Experts (CDPE) and can help you examine your options.

P.S. - HERA authorized the first $7,500 tax credit, which has since been replaced with President Obama's $8,000 credit.  Time is winding down on this credit which expires December 1, 2009.  It can take over 45 days for the house to close, so hook up with Karen or Lou to get the ball rolling!

The housing market has changed in Chicago and the rest of the nation over the last two years.  Many homes are in foreclosure, even after record numbers of people have already lost their homes.  Housing prices have fallen from the boom years.  Sellers must realistically expect less while many homeowners are not even in a good position to sell as their mortgage loans exceed the value of their homes.

This situation has created a demand for Realtors® who are well-versed in all aspects of the current market dynamics.  Many of our potential clients are in trouble.  The prospect of foreclosure is both financially and personally devastating.  Hovering on the brink of foreclosure, they need both help and hope from a Realtor® specially trained in helping them try to avoid foreclosure.  Even the process of buying a home in various stages of foreclosure, making a short sale offer, or bidding on a bank-owned home require knowledge and skills that most Realtors® do not have.

A CDPE has been trained in the intricacies of distressed property - a term that actually applies to any property that has lost value through physical damage, zoning changes, lack of curb appeal, or market conditions.  As a result of the change in value, the owner has difficulty making the payments or selling the property.  A CDPE can assist the owner in a short sale, improving the chance that the lender will agree to accept less than the amount owed.  This negotiation is often a hard sell that requires paperwork, time, and patience.  Though this type of sale may take months to complete, it can successfully prevent foreclosure for the owner.  CDPEs also guide clients toward loan refinancing and modification solutions.

A CDPE cannot promise to save the home of everyone who walks in the door, but for troubled homeowners who seek help early enough, there may be another solution.  According to Alex Chafren of the Distressed Property Institute, 85% of homeowners who work with a CDPE can avoid foreclosure. 

We have always been willing to help our clients.  Now as CDPEs, we are even better equipped to do so.  If you find yourself wondering if foreclosure is your only way out, Karen Breen Elia and Louis Elia at ChicagoCityHomes may be able to help you.  As a part of the 1% of realtors with the CDPE designation, we can also help you if you would like to buy a foreclosed home.

Chicago is a city of neighborhoods, all easily accessible to each other via a great mass transit system. For someone who loves the urban flow and wants to be near work, restaurants, shopping, and things to do, there is no better neighborhood than downtown Chicago.

Comprised of River North, Old Town, Gold Coast, Streeterville, Lakeshore East, Loop, Printers Row, West Loop, Greektown, and South Loop, the downtown area currently has about 4,300 units for sale that offer an interesting mix of architectural styles, prices, and amenities. Not surprisingly, the majority of the homes for sale are condominiums or townhomes - new ones, converted apartment buildings, restored warehouses - but there are some single family homes as well. There's not much grass for individual units, but there are 24 miles of lakefront park, courtesy of the Chicago Park District for anyone needing a "green fix." These parks, notably Grant Park, Lincoln Park and Olive Park have some of the best public beaches, fishing, boat slips and docks, golf courses and driving ranges, walking, biking and skating trails around.

Anyone picking up a Chicago guidebook will soon zero in on the hundreds of top-rated restaurants, the designer shopping, and the award winning architecture you pass on your daily walk or transit ride to work. Area residents soon find their favorite, more affordable "everyday" places to eat, drink, and shop. For something different, cuisines of the world are a short cab ride away in nearby neighborhoods. The buildings may fade into the background but whether it's Trump Tower in River North, Hancock Center in Streeterville, Sears Tower in the Loop, or the office building with the diamond shaped roof visible from Lake Shore Dr., there's always one sky scraper that stands out every time.

If your game plan is to continue your education after work, it's easy to do that as Chicago is home to 86 colleges and universities, most with evening or weekend programs to supplement their growing full time enrollment. Nineteen are located right in the Loop, including Columbia College, Roosevelt University, DePaul, John Marshall Law School, and the famous Harrington School of Design.

If you want to live downtown to be "in the midst of it all," there's plenty to see and do. Theaters, museums, and major sports teams offer year round events of interest, but the city is noted for its downtown festivals in the summer and its family events at Navy Pier.

Interested in seeing whether downtown living is for you? ChicagoCityHomes will find you the Chicago condo, townhome, or loft of your dreams.

On March 19, 2009, the U.S Department of the Treasury and the Department of Housing and Urban Development (HUD) launched a new website to help qualify consumers for the new loan modification and refinancing program.  The new website MakingHomeAffordable.gov offers features such as interactive self-assessment tools and calculators so consumers can see both their eligibility and potential savings.

This effort to educate the public on the program follows the release of guidelines to lenders on March 4. Representatives from the Treasury, HUD, and an interagency task force met with mortgage loan servicers, investors, nonprofit housing counselors, and representatives of borrower advocacy groups to help them implement the program. Many lenders have already incorporated information about the program into their websites and are reaching out to borrowers who might qualify.

The Making Home Affordable program aims to help two groups of homeowners who are making a good faith effort to stay in their homes:

• Borrowers who want to refinance but are unable to because the value of their home has fallen.

Aimed at assisting five million homeowners with loans backed by Fannie Mae or Freddie Mac, the refinancing arm of the program will help those whose payments are up-to-date but who might not qualify for bank financing.

• Borrowers who cannot make their mortgage payments because their interest rate has increased or their income has fallen.

The loan modification part of the program seeks to help four million homeowners who are delinquent on their payments but have income sufficient to pay a reduced payment equivalent to 31% of their monthly income.

When homeowners come to the user-friendly site, they choose which program they are applying for, answer a few simple questions, and immediately receive an answer as to whether they may qualify.  Those who qualify are directed to their lender or mortgage servicer and provided with a list of documents they will need to put the program into motion. Those who do not meet program qualifications are urged to contact their mortgage servicer or a HUD-approved counselor. There is no cost for qualified homeowners to participate in the program.

In the near future, the site will include a list of lenders who are participating in the program.

If you are a homeowner in financial distress, please contact Karen Breen Elia or Louis Elia at ChicagoCityHomes for help. They are Certified Distressed Property Experts (CDPE).

Assuming that you are buying another home, you will benefit from the "buyer's market" environment. Another seller who has put work into his home, who has made desirable improvements in it, is also selling it at a price below what it might have been worth a couple years ago.  If the owner has finished the basement, added a deck, and replaced the windows, you now have the opportunity to buy a home that includes all the upgrades and updates at a much lower price.

In the Chicago market, I have seen this time and time again.  One recent example that comes to mind is my clients,  sellers in Albany Park who just "lost" $29,000 on the sale of their condo that they purchased new in April 2004.  In return, however, they just purchased a single family house in a short sale, and paid $140,000 less than the last owner, who additionally finished the basement and paved the patio. 

My clients were able to make the move they wanted in their time frame, without putting their life on hold waiting for the market to achieve a gain on their sale.  Another owner in the same building said she was "morally opposed" to selling her condo for less than  the price for which it was purchased.  My clients were "morally opposed" to not cashing in on the opportunities our current market presents!  When you are both a seller and a buyer, your "losses" as a seller are more than compensated by your "gains" as buyer.  See the big picture.

Karen Breen Elia and Louis Elia will draw the big picture for you and show you great values in North Side properties.  Visit Chicagocityhomes today.

It's been nearly a month since President Barrack Obama announced his Stimulus Plan, which includes an $8,000 tax credit for first time homebuyers.  Some critics claimed it wasn't enough, especially since original drafts of the plan included a $15,000 credit.  Other were disappointed that only first time homebuyers could benefit.  Builders of new homes were disappointed on both scores.  The plan as noted in the chart below has some income restrictions. The credit cannot be used as a down payment.  It doesn't have to be paid back. It will be applied against the homeowners' tax liability; if they owe less the $8,000 tax, they receive the rest back in a check from the government.

With its imperfections, will the plan help stimulate the housing market? The National Association of Realtors (NAR) thinks so; in fact the prestigious real estate group upped its estimate of how many would be helped from 200,000 to 900,000 over the past few weeks.

To any first time buyer with good credit and a stable income who questions the value of this credit, I say two words: "Get real."  When is the last time someone offered you $8,000 that you didn't have to pay back?

When people move into a new home, some new dynamics come into play.  Especially if you embrace homeownership after apartment living, you may find your monthly outlay for utilities much higher than expected - especially if utilities were included in the rent.  As a homeowner, you are the one responsible for the hot water heater that suddenly dies or the refrigerator that conks out.  The new tax credit doesn't function like an ATM where you can withdraw money when you need it.  However, if you reduce your withholding, the anticipated tax credit can help you ease into higher home operating costs and provide for unplanned emergencies.

In addition, $8,000 can fund some of the needs and desires you may have as a new homeowner.  The amount won't allow you to remodel a shack into a palace, but it will cover new appliances or new carpeting or some new furniture.  If you don't have the cash, you might be able to buy some of these things on a deferred payment plan offered by many stores.  Without adding to your Mastercard or Visa bills, you can pay off the balance with your tax credit funds.

The credit is good through December 1, 2009, so now is the time to visit Chicagocityhomes.  Karen Breen Elia and Louis Elia will help you locate an affordable first home in Lakeview or one of the many other intriguing Chicago neighborhoods.