Tuesday, March 1, 2016
What Happens to a Mortgage After a Bankruptcy Discharge?
Recently, I had a client ask me what happens to the mortgage on their current home when it is discharged
pursuant to a bankruptcy order. Contrary to what you might initially think, A debt that is secured, such as a mortgage, is
dischargeable BUT if you want to keep the house or other secured asset, you have to pay the debt as you normally would. A
discharge simply means that it eliminates the DEBT on the property, not the LIEN. So, if you were to stop making payments
on the debt that has been discharged on your home, the bank can repossess the property, but it cannot pursue you for the money
that is owed. As long as you remain current with the payments, you can stay in your home as you normally would.
7:55 pm cst
Friday, February 5, 2016
Spring is in Full Swing!
Attention home buyers on the fence: Spring is in full swing! The market has been incredibly busy because
of the mild winter we've been having. I have a lot of clients selling their homes and tons of first time home buyers taking
advantage of remarkably low rates. If you're on the fence, get pre-approved and get out there!
10:50 am cst
Friday, January 22, 2016
Millenials Are Finally Moving Out of Mom and Dad's House!
12:34 pm cst
From Bloomberg Business:
Parents, rejoice. Your offspring may finally
be moving out of the family basement.
A new report (PDF)
from Fannie Mae, the U.S. government-backed mortgage company, suggests that the millennial generation is getting a move
"According to the ACS [Census Bureau’s American Community Survey], the number of homeowners aged 25-34
fell by more than 250,000 in each year between 2007 and 2012, but has declined by less than 100,000 annually since then,"
Fannie Mae said. "In fact, the decline between 2013 and 2014 was statistically insignificant, the first indication of
stability in the number of young homeowners since the onset of the Great Recession." So while the number of homeowners
in that age range is still on the decline, the trend looks poised for a reversal, and Fannie Mae said it won't take much
to see positive growth in millennial homeownership in the near future.
The team ran an analysis with
three scenarios for the future of homeownership in this generation. The first assumed a continuation of the decline that
took place between 2012 and 2014. The second assumed that the pace remains the same as what was seen in 2014, and the
third predicted a slight recovery that would see home ownership return to its longer-term trend by the end of the decade.
Scenario one is the only case
that yielded a further decline, and Fannie Mae is of the mind that this particular outcome isn't highly likely
because the labor market continues to show strength and the dream of home ownership lives on in the hearts of young adults.
A report published
by Goldman Sachs earlier this year also pointed to millennials' desire to leave the family homestead. The company's survey
showed that only 12 percent of millennials rated home ownership as "not very important," while 20 percent already
owned a home or were in the process of buying one. Almost 70 percent said ownership was either "very important"
or "important," but it wasn't a near-term goal.
Fannie Mae reckons that home builders will need to adjust
to the realities of a sudden upswing in millennial buyers, with an expected adjustment in the "size, type, and geographic
location of new housing construction." In other words: Bye, bye basements.
Tuesday, November 10, 2015
Fall is here and the holidays are just around the corner. Discounts for all closings and other services
are available for a limited time. Call my office for details.
1:19 pm cst
Wednesday, July 22, 2015
New Office Location!
I'm happy to announce that I now have in office in Crystal Lake. I'll still have the Chicago location
for meetings by appointment but with the new office, I'll be able to easily service the Northwest Chicagoland area.
11:56 am cdt
Friday, June 12, 2015
How Home Buying is Going to Change After August 1
9:59 am cdt
From Crain's Chicago:
Big changes in the process of buying a house kick in Aug. 1, the day new federal mortgage rules take effect that
are designed to eliminate closing-day surprises or confusion.
While title companies and real estate agents and lawyers are scrambling to be ready by
the deadline, home buyers should feel more like guests at a well-executed dinner party, oblivious to the mess in the kitchen
and content to be served each course at just the right time.
"It's going to bring better peace of mind that you know what you're getting into
with this loan," said Ben Niernberg, executive vice president at Northbrook-based Proper Title. If all the professionals
in the pipeline handle the new rules well, homebuyers should notice only that "things have gotten easier to understand,"
the homebuyer, the new rules created by the Consumer Financial Protection Bureau bring two key changes: All the financial
details of their purchase will be spelled out more simply, and the forms containing those details will be in their hands three
business days before the closing, giving them time to ask for clarity on anything they don't understand.
"You're getting time to see all the
moving parts of your loan a few days before you sit down at that table to close the transaction," said Maurice Hampton,
managing broker and CEO of Centered International Realty based in Beverly. CFPB says consumers will "Know Before You Owe."
RESPONSE TO SUBPRIME MELTDOWN
Enabled by the Dodd-Frank Act,
the TILA-RISPA Integrated
Disclosure rules, as they are known, come largely as a response to the subprime mortgage meltdown, in which some borrowers were unaware
of the moving terms of their adjustable-rate mortgages and wound up in default when a rising interest rate increased their
While some experienced real estate buyers may see the changes as a belt-and-suspenders approach to the relatively
rare problem of buyers misunderstanding their loans, eventually the changes will become transparent, say most people in real
estate and related industries.
"There will be a few more steps along the way, but the steps are to protect people and give them a chance to
make a better financial decision," said Tom Pilafas, executive vice president of Near North National Title Insurance
are four things to know about the changes:
• The rules apply to loan applications initiated Aug. 1 or later. Any
loan in process prior to that will operate under existing rules. All-cash purchasers also are exempt.
• The rules require two new forms, both
of which replace—and are intended to simplify—existing forms.
First is the loan estimate, delivered
to the borrower within three days of application and projecting the monthly costs, the closing costs and the cash the borrower
will need to bring to the closing. This form will take the place of a Truth in Lending, or TILA, form and the Good Faith Estimate.
Second is a Closing Disclosure form, delivered three business days before the scheduled closing. This one replaces a closing-day
form known as HUD-1 and a second TILA form.
"The difference with the new forms is that the figures on the first one and the
second one have to agree, or be very close," said Jeffrey Baker, a lawyer with Sorling Northrup in Springfield who works
for the Illinois Association of Realtors. "There was no mechanism requiring them to match up in the past."
CFPB's rules include penalties
for lenders if the figures on the two forms aren't within an established range, Baker said. The idea is to prevent buyers
who've fallen in love with a certain house from getting markedly more expensive terms at closing than they were counting on,
"when they might feel they have to just go ahead and do it," Baker said.
• Both forms emphasize clarity.
"When you closed in the past, you
got a spreadsheet that was a bunch of numbered lines," said Christopher Hacker, a co-founder of ShortTrack, a Chicago-based
real estate transaction software company. "It was confusing, and you needed somebody to decipher it for you." Under
the new rules, "you'll see something text-based and more intuitive that tells you what you'll owe" on a monthly
basis, and how that will change in the future, in the case of a loan with an adjustable rate.
• Last-minute changes in a sale will be harder to make.
Under the existing rules, at least in
Illinois, final financial details of a purchase can be recalculated on the day of closing. That can happen for countless reasons,
including the buyers changing their mind on keeping excluded chandeliers or other pricey items on the final walk-through,
or the seller's lender refiguring property tax estimates.
"Closings have a propensity to be delayed, because with so many parties involved,
inevitably somebody changes something," said Steve DiMarco, president of the Key Mortgage Services division of Baird
& Warner. After Aug. 1, "because the forms have to be handed to the buyer three days in advance, there's not going
to be that chance to change things around on closing day."
last-minute changes are inevitable. The CFPB's rules specifically spell out which will call for an automatic three-day delay and which will cause no
Monday, March 30, 2015
Selling Your Home? How Does it Smell?
5:56 pm cdt
Have you ever been in someone's home and smelled something bad? Or walked into your own home and
smelling something terrible? When you're selling your home, one of the first impressions buyers will get is the smell. If
you cook with a lot of grease or strong spices, have pets, or even don't take out the trash on a regular basis, your house
may smell. And like the Febreze commercials say, you may be noseblind to it.
list your house, there are things you can do to minimize this. Odor is caused by bacteria that attaches to the ceilings, walls,
draperies, carpets and furniture. You may need to repaint and do a deep clean on your home before you list it. You can have
a professional do it, or there is a do-it-yourself nontoxic fogger like the Dynofresh that can do it for you. Cleaning may
only temporarily take care of the issue, especially if the offender is cooking or pets. The other things you can do are: take
out the trash regularly, clean out your fridge, avoid cooking strong smelling foods, do your laundry on a regular basis, use
the fan over the stove when cooking and bathe your pets regularly.
You can also use subtle,
simple scents. Light a candle, lay fabric softener sheets between linens stacked on shelves, add plug ins by the bathroom
door, or put lemon peels in the garbage disposal.
These little things may save you thousands
when negotiating a price.
Wednesday, March 11, 2015
At Home Illinois Announces New Program for Refinance, Repeat and First-Time Buyers
7:15 pm cdt
The Illinois Housing Development Authority (IHDA) is offering @HomeIllinois, a new loan product for
first-time Illinois homebuyers, homeowners looking to refinancing and, for the first time in IHDA history, repeat buyers looking
to move up. The @HomeIllinois program features a 30-year fixed rate mortgage and up to $5000 in closing cost or downpayment
Visit www.athomeillinois.gov for details!
Tuesday, March 3, 2015
Chicago Ranks 14th Nationwide Among Real Estate Investors
8:28 pm cst
Taken from Chicago Daily News (Crain's) online:
Real estate investors like Chicago, but it
doesn't set their hearts aflutter like Seattle, Boston and Houston. Real
estate executives ranked Chicago 14th among 75 U.S. markets for investment attractiveness in 2015, according to the “Emerging
Trends in Real Estate” report, an annual publication by the Urban Land Institute and PricewaterhouseCoopers LLP.
The area trailed coastal
favorites, such as San Francisco, Boston and Seattle, as well as Austin, Dallas/Fort Worth and Houston, which was selected
the best market for real estate investment in 2015. Chicago has long trailed such markets in the “Emerging Trends” report.
For four out of five major
property types, meanwhile, investors are less bullish on buying here in 2015 than they were for 2014, the report shows.
In the report, executives
rated U.S. 75 markets on a five-point scale based their investment potential next year. One means “abysmal,” while
3 indicates “fair” and 5 signifies “excellent.”
Chicago scored 3.46, beating out Manhattan, long considered
one of the choice locations for real estate deals.
Houston earned a 4.01 score. The Texas
city brings “energy and technology. They bring international trade, the port and a huge educational system,” and
a business-friendly environment, said Stephen Blank, senior resident fellow at the Washington, D.C.-based Urban Land Institute
who helped put the report together. “Chicago's got some of those things, but not every one. That's why there's the distance.” The Chicago area remains prized for its size and population density and for a local
economy that ranges from tech startups to Fortune 500 behemoths.
It's a truism that's played out this year in a robust fashion, with commercial-property
sales on track to hit their highest annual level since the 2007
peak, according to New York-based Real Capital Analytics Inc.
Chicago has one of the “most diverse economic bases in the country,” the report says,
and the region remains “one of the major core real estate markets in the United States and as such is very appealing
to both domestic and global real estate investors.”
latest "Emerging Trends" study is based on about 1,055 surveys and 391 interviews with executives at real estate
trusts, investment firms, development companies, brokerages and others working in commercial real estate.
Tuesday, February 10, 2015
The Outlook for the 2015 Real Estate Market is Good
3:12 pm cst
Existing home prices are expected to rise about 3% this year, and about 2% the next year. Home
sales in 2015 are expected to reach their highest level in two years. While mortgage rates will probably rise this year, they
will still be considered some of the lowest of all time.
66% of all Americans say they would buy if they are going to move today.
68% of all Americans believe now is a good time to buy.
51% of all Americans plan to buy a home in the next 5 years.
35% of the homes sold recently were on the market for less than