I have had some discussions this past week about the challenges of financing and the options that are available right now. I'm hearing "take the 5/1 ARM because it is a lower rate and you can refinance in five years".

Sounds pretty good to me or is it?

"Take the 5/1 ARM because the rate is lower then the 30 year fixed and besides, you'll be out of the property before then." Or will you?

So which is it? SALT or SUGAR?

See, I'm thinking and thinking till I can drive myself crazy with the decision but then I'm looking at how Lee Iococca, that saved Chrysler back in the 1980's when their stock went down to $5 and neither my brother nor I would take a gamble with Chrysler because neither of us could afford to loose more money, is now going to loose his pension and forbid that he has to turn in his car that he was promised until "death do us part" or purchase it under the new Chrysler ownership.

What does this have to do with anything? Well, I do not think that most of us have still learned our life's lessons and I bet that some will grab that 5/1 ARM because it is such a deal like the negative ARM that was introduced way back or maybe it is a deal.

Then I'm looking at the fact that one in eight properties is in pre-foreclosure right now and this is just the beginning. So, I'm thinking with all the default on mortgages due to whatever reason and there are alot of them and alot of sad ones on top of it, I'm looking at values will still decline and if someone put 20% down on a property and they loose part or all of that equity and are flat lining then when they refinance their home down the road for a similar rate that would be reflected in today's 30 year fixed but now will the bank require the homeowner to pay PMI because the equity is less then 20% and so now PMI rates are anticipated to go up even more and twhile I may be driving you crazy by reading this .... I'm then thinking that the homeowner will and could possibly, actually be paying more down the road becaue PMI may be added to a tidy sum of let's say $225 additional a month and all to save how much right now?

Whew!!!

SALT OR SUGAR?

picture from Microsoft Office.

Okay people, here's a first one and I have the business card in front of me as I write this post.

WHEN YOU ARE SELLING YOUR HOME AND USING A REALTOR, never, ever allow anybody into your property if your Realtor is not present. I don't care if they say they have an appointment, they don't. There are rules that Realtors must adhere to but this one takes the cake.

One of my listings is a short sale. The property is a two flat and over the weekend, the building was shut down so that the tenants had a break from the previous weeks active showings! To my amazement, a Chicago Police Detective, who is a licensed Realtor, shows up at my client's door with his wife and says he wants to see the building. He didn't have an appointment, he didn't call me, he didn't have his Realtor's license or his business card for them. Instead, he uses his clout as a Chicago Police Detective to gain access into the property and view it with his wife.

Hear me, unless that officer has a badge on him, is accompanied with another office who also has a badge on him/her, and they don't have a search warrant, they are not allowed into your property. Call 911.

For all we knew, this man may not have been a police detective but an individual who had business cards printed up as a Chicago Detective.

FOR YOUR SAFETY, do not allow anybody into your property/building without your Realtor present. This could have ended up as a headliner in the Chicago Tribune or Chicago Suntimes with a bad ending only because the widow felt threatened because the man was using his clout as a police detective to see a property that he was lazy and didn't even call me to set up a scheduled appointment but decided to use his power.

Until tomorrow,

Barb Van Stensel
Third Generation in a Family
of Real Estate Professionals
Chicago, IL

Read the new law that will go into effect JUNE 1, 2009 regarding Notary Public Act - it's changed big time.

P.A. 095-0988
A new Illinois law regarding the transfer of real property in Cook County goes into effect on June 1, 2009. Public Act 095-0988 amends the Illinois Notary Public Act by describing the manner in which a notary must sign each notary certificate at the time of notarization. The law requires that a paper or electronic form must be completed and retained, for a period of 7 years, for each notarial act relating to real property in Cook County.

One key change is that finger-printing now is a part of the process. As part of the record to be kept, the law provides that the notary require the person signing the document of conveyance, including an agent acting on behalf of a principal under a duly executed power of attorney, to place his/her thumbprint on the notarial record.

We're fightint Mortgage Fraud in Cook County, in a unique way. This is what the New Notary Law is handling it in Cook County, Illinois.

In an effort to fight mortgage fraud in Cook County, the new law creates this process as a pilot program. Often times straw purchasers and fraudulent mortgage brokers will work together to commit mortgage fraud. This law places responsibilities on a notary to verify the identities to a real estate transaction in Cook County, and keep a thumb print of them as well. Proponents believe this will deter individuals from participating in these schemes, and reduce the amount of mortgage fraud in Cook County.

As a pilot program, the law will sunset on July 1, 2013.

Hey Chicago, if you are a multi-unit building nad have been on the market or are considering going on the market soon, then pull out your leases and review them. Here's why:

The bank will base the value on the property off of these leases and the verbage that most Realtors put out there about "below market rents" just won't cut it with the lender. If you aren't at market rent and you have been giving your tenants a break in their rent for staying at the property for so long, that's great but it's not great to your property value. Your property value will be based off of the GRM (Gross Rent Multiplier) and the rents are what support that GRM.

Financing for your property, depending upon the price point, would be best to go under FHA financing. Why FHA? If you neighborhood has been experiencing a decline in value, like most, FHA would require a certain percentage down payment. With conventional financing, the lender will require 5% more down payment and it has been brought to my attention that PMI will no longer be available for investment properties. I would suggest you reach out to your banker or mortgage broker for the latest in guidelines.

And if you want to increase your rents, then increase your curb appeal. There is nothing like curb appeal and a property that has been maintained.

I do rentals in Chicago and I recently rented out two units for one of the neighbors in the Ravenswood GArdens/Albany Park borderline. He put roughly $800 in landscaping and because of that he got $300 more above the crrent market rent per month for the one unit and $150 more above the current market rent for the garden unit. That's $450 a month above the competition! In under two months, because this owner listened to me he netted $4,600 more in rent because of $800 in landscaping. Nice return on your investment, eh?

Chicago - Albany Park Home Sales

Average List Price and Sale Prices by subdivision in the Chicago - Albany Park area.

Single Family Homes Search Previous Sales
Subdivision	Sales	Avg. List	Avg. Sale	Ratio
Albany Park	7	$318,571.43	$300,714.29	94.4
Mayfair	19	$300,921.05	$283,403.74	94.2
North Mayfair	2	$336,700.00	$328,000.00	97.4
Park Manor	12	$402,758.33	$385,375.00	95.7
Ravenswood	2	$847,000.00	$840,960.50	99.3
Ravenswood Manor	3	$623,300.00	$596,666.67	95.7

Attached Homes Search Previous Sales
Subdivision	Sales	Avg. List	Avg. Sale	Ratio
Albany Park	4	$250,425.00	$244,450.00	97.6
Avers Court	1	$189,900.00	$186,000.00	98
Bernard Court	1	$139,700.00	$139,700.00	100
Mayfair	1	$229,900.00	$223,300.00	97.1
North Mayfair	2	$361,500.00	$361,500.00	100
Park Place Condominiums	1	$184,500.00	$180,000.00	97.6
Ravenswood	9	$300,588.89	$290,388.89	96.6
Ravenswood Manor	7	$264,464.29	$259,571.43	98.2

Search for homes sold in Chicago - Albany Park. Get complete access to all homes sold in Chicago - Albany Park and the surrounding areas. With experienced, local Chicago - Albany Park real estate agents who know the area, we can help anyone find the house of their dreams. Average Sale prices and List Prices for homes sold in Chicago - Albany Park: