Saint Charles, IL

I've had the sense that market activity in St. Charles, IL is picking up and the data supports that feeling. Closed sales in January 2010 are about 20% over closed sales in January 2009. The interesting column is the Under Contract, since it shows that there will be a respectable closing rates for February and March. The best selling price points are up to $300,000. Homes priced from $300,000-$450,000 are also selling better than in 2009. Homes priced over $600,000 continue to have high inventory and slow sales. Difficulty in obtaining jumbo mortgage loans and economy uncertainty are the key reasons that $1,000,000+ homes just aren't selling. In the detailed data I see that the homes that go under contract are really good deals and a great investment for the buyer. If you would like additional information about home sales in St. Charles, including market times and other detailed information, please send me an email or respond to this post.

Data from MRED Market Real Estate Data, the MLS for Northern Illinois.

Fox Mill is a subdivision in suburban St. Charles, IL about 50 miles west of downtown Chicago. It is an upscale subdivision popular with transferees and local move up buyers. Very surprising to read that the reserve account has $84,000 when it should have $6 million! But where does the $70 million figure come from? This article is from the February 4, 2010 Kane County Chronicle.

Fox Mill Sues Former Board for $70 million.

By BRENDA SCHORY - bschory@kcchronicle.com

CAMPTON HILLS – A homeowners association has filed suit against its former board seeking nearly $70 million in damages.

According to court papers filed this week, Fox Mill Homeowners Association in Campton Hills is suing its former board and management company, various companies and 13 individuals, claiming that from 1994 to 2008, board members used the association’s dues for their own personal benefit in a scheme to defraud the association.

The 40-page complaint filed in Kane County alleges board members engaged in “self-dealing” in that they used their own ancillary companies to do lawn maintenance and pool cleaning, rather than competitive bidding for the best price.

The lawsuit also claims the former board, Fox Mill Limited Partnership, controlled by B&B Enterprises, also took out a $250,000 mortgage on a parcel owned by the homeowners for personal use, then later sold the parcel back to the homeowners association for $250,000.

The suit claims the previous board kept association fees artificially low, “solely for their own profit and benefit and were without any regard to the residents of Fox Mill.”

“The dues should have been higher,” said James Newman, an attorney who also lives in Fox Mill and serves on the homeowners association board. “They kept them lower so people would buy homes. The average dues were $1,000 a month. They should have been $1,500 to $2,000.”

As a result of the previous board’s actions, when the homeowners took over the board in July 2008, the reserve account had less than $84,000 when it should have had more than $6 million, the lawsuit states.

The amount sought is the total of money the previous board and management company made off the homeowners association through fraud, the lawsuit states.

The suit also claims that attorney Patrick Griffin was working for the previous board and management company while serving as the attorney for the homeowners association without disclosing the conflict of interest to the homeowners.

Among the suit’s allegations against Griffin was that he drew up a lease for tenants in a homeowner association-owned house for an employee of B&B Enterprises, but setting the rent below market.

Griffin said he had not seen the complaint and could not comment.

Raul Brizuela, an employee of B&B Enterprises and a former board member, also had not seen the complaint, but said it was part of an ongoing controversy being caused by Newman in the subdivision.

“All I can say is this lawsuit to me is just further evidence that any community we could have in our development is obviously almost destroyed by this tendency to pursue legal action,” Brizuela said. “I have no idea why Mr. Newman would name me in this lawsuit.”

Newman said the homeowners association board voted to sue to recover financial damages when the former board and management company would not cooperate with their request to pay back the money.

Newman said he abstained from the vote and agreed to take the case on contingency because other lawyers would have cost too much.

“I tried to resolve it,” Newman said. “The only response we get is an extended middle finger.”

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If your home is not currently listed and you hope to get your home sold this Spring, NOW is the time to put your home on the market. Traditionally in our area homesellers have waited until AFTER the Superbowl to list for the Spring market. But this year is different.

Why?

1. Homebuyers have a great incentive to LOOK EARLY this year.

Perhaps you've heard of the $8,000 tax credit for 1st time homebuyers. This credit expires at midnight on April 30, 2010. For any 1st time homebuyer who has NOT Contracted to buy a home by this date, THEIR TIME IS UP!

2. Homesellers have a great incentive to LIST EARLY this year.

Perhaps you've heard of the $6,500 tax credit incentive for long-time Homeowners. This credit also expires at midnight on April 30, 2010. This means that for any home seller who chooses to take advantage of this tax credit, they must also contract to buy a home by the April 30 deadline. I have found that many sellers do not want to take a home sale contingency in this market. That means that you better get a head start on the competition in order to have a chance at this once in a lifetime opportunity!

3. Banks have been holding onto properties.

Banks appear to be holding onto foreclosed properties rather than rush to list them. This means that at any moment a FLOOD OF PROPERTIES could ENTER your marketplace and become YOUR COMPETITION. That's right, BANKS may become one of your biggest competitors. We all know the prices that foreclosed homes get on the open market. Do you really want to compete against these homes?

4. More home sellers are trying to save their home from foreclosure by negotiating a Short Sale.

It is anticipated that the market will be flooded with more Short Sale homes as many homeowners can't continue to pay their mortgage obligation. This will probably place another Flood of Properties on the market very soon for three reasons:

a. Unemployment Continues to Rise

1. Causes a loss of income

2. Inablility to pay the mortgage

b. Adjustable Mortgage Resets

1. Rates Rise on homeowners loans

2. Payment Shock causes an inability to make the new mortgage payment

3. Homeowner has to sell

c. Loan Modifications Fail

1. Many homeowners have tried to take advantage of the Making Homes Affordable initiatives out of Washington DC

2. Many of the same owners are attempting to modify their mortgage

3. Statistically most of the modifications are failing to work. Many homeowners have already extended beyond the three month trial period and yet the banks are still not modifying the loans.

5. Interest Rates are Still LOW

For these reasons IF YOU ARE SERIOUS ABOUT SELLING YOUR HOME THIS SPRING . . . NOW is the time to GET A JUMP START on the COMPETITION!

Contact me at the number below if you would like an idea of how quickly we can get your home sold in this market. We have great marketing strategies that continue to work.

A recent home of ours in a competitive neighborhood had two good competing offers within 2 1/2 weeks of listing the home. Our seller sold the home for more than appraised value with a buyer who put 45% down and closed EARLY. There were two competing homes on the same street that backed to the same pond that were listed at the same time. Ours sold. Theirs didn't.

Experience a Welcomed Difference in Real Estate, Mortgage and Insurance Services

I just got this news about HVCC. HVCC is known as Home Valuation Code of Conduct, otherwise known as hell for homebuyers, home sellers, realtors, real estate attorneys and lenders. Reaty Times reported that the days for HVCC may be numbered.

In the article (see www.realtytimes.com/rtpages/20091221_washingtonreport.htm) It's stated that Congress took a major step last week toward eliminating what has been a painful thorn in the side of home sellers, Realtors, home builders, mortgage brokers and appraisers for months.

As part of its financial and mortgage industry reform bill, the House voted to terminate the controversial Home Valuation Code of Conduct (HVCC) once a new Consumer Financial Protection Agency begins operations. The new agency would assume primary federal responsibility for equal opportunity in credit, real estate settlement procedures, financial disclosures to borrowers, plus unfair and deceptive marketing in mortgages and other financial products.

THE BILL HAS BEEN CRITICIZED BECAUSE:

the rules have been criticized for producing lowball, inaccurate valuations; cutting appraisers' fees to the point where the most experienced professionals refuse to accept low-pay assignments; plus encouraging the use of inexperienced appraisers unfamiliar with local markets -

Whether the Senate ultimately goes along with creation of the consumer protection agency won't be know until next year. But the House bill should be a warning shot to Fannie and Freddie that their controversial appraisal code may have a very limited lifespan.