Jim Murrin

I wanted to share this recent article to everyone that is following the Chicago Short Sale Specialists Blog. Chicago Short Sale Specialists specializes in Chicago Short Sales as well as all 50 states across the country. We help homeowners prevent foreclosure by short selling their properties. I found the following article interesting and I wanted to share it.

By, Carrie Bay

Data through December 2010, released Tuesday by Standard & Poor’s show that the S&P/Case-Shiller national home price index declined by 3.9 percent quarter-over-quarter during the last three months of 2010.

The closely watched gauge is down 4.1 percent versus the fourth quarter of 2009, which is the lowest annual growth rate since prices plummeted at an annual rate of 8.6 percent in the third quarter of 2009.

“We ended 2010 with a weak report,” said David M. Blitzer, chairman of the index committee at Standard & Poor’s. “Despite improvements in the overall economy, housing continues to drift lower and weaker.”

S&P warns in its report that both its 10-city and 20-city home price composites and the national index are moving closer to their 2009 troughs and a full-fledged double dip.

The national reading is within a percentage point of the low it set in the first quarter of 2009, Blitzer said. The 10-city and 20-city composite measurements in S&P’s study are now only 3.9 percent and 2.3 percent above their April 2009 troughs, respectively. Back in July of last year, they were 7.9 percent and 6.9 percent above the troughs, reinforcing the fact that the latter half of 2010 has been marked by a drop in home prices across the nation.

“Unlike the 2006 to 2009 period when all cities saw prices move together, we see some differing stories around the country,” Blitzer noted. “California is doing better with gains from their low points in Los Angeles, San Diego, and San Francisco.”

But at the other end is the Sun Belt, Blitzer went on to explain, where home prices set new lows in December. Also seeing renewed weakness are some cities that were among the last to reach their peaks.

Altogether, S&P’s data show that 11 markets hit their lowest levels in December since home prices peaked in 2006 and 2007: Atlanta, Charlotte, Chicago, Detroit, Las Vegas, Miami, New York, Phoenix, Portland, Seattle, and Tampa.

Looking deeper into the monthly data, 19 of the 20 metropolitan areas included in the analysis and both composites were down in December when compared to November, and all have displayed this negative trend for three consecutive months. The only exception was Washington D.C., up 0.3 percent.

Year-over-year, 18 of the 20 metros and both composites declined compared to December 2009. San Diego and Washington D.C. are the only two cities where home prices are increasing on an annual basis, +1.7 percent and +4.1 percent, respectively.

As of the fourth quarter of 2010, S&P says average home prices across the United States are at similar levels to what they were in the first quarter of 2003.

Chicago Short Sale Specialists specializes in Chicago Short Sales and surrounding suburbs. We are considered experts in short sales and short sale negotiations. If you are considering a short sale please visit our website for a free confidential consultation on how a short sale can benefit you. Visit www.chicagoshortsalespecialists.com

I wanted to share this recent article to everyone that is following the Chicago Short Sale Specialists Blog. Chicago Short Sale Specialists specializes in Chicago Short Sales as well as all 50 states across the country. We help homeowners prevent foreclosure by short selling their properties. I found the following article interesting and I wanted to share it.

By, Andrew Shroedter

(Crain's) — The two most expensive home sales in Lake Forest last year had more in common than multimillion-dollar prices.

The transaction also were short sales, meaning the lenders approved the sale of the homes for less than the sellers owed, a sign that even affluent suburbs aren't immune to the punishing economic downturn.

In the latest transaction, the historic Noble Judah house at 111 W. Westminster Road in the north suburb sold in late December for just under $4.8 million, according to property records.

The sale was the second-priciest transaction of 2010 in Lake Forest, topped only by another short sale: The Georgian-style mansion at 620 Lake Road, once owned by former dot-com investor William Lederer, sold in April for $5.2-million.

Before the economy crashed, the massive homes on Westminster and Lake roads would've sold for upward of $7 million, observers say.

But prices in the suburb have fallen, leading more underwater homeowners to consider a short sale, says Pat Purcell, a sales agent in the Lake Forest East office of Koenig & Strey Real Living, who wasn't involved in either property.

“People are getting tired of holding onto these homes,” he says.

Gerald and Gail Miller paid just under $3.4 million in October 1999 for the 13,000-square-foot mansion on Westminster Road, according to property records. It couldn't be determined how much the couple owed on the home, but people familiar with the transaction confirmed it was a short sale.

The Millers listed the French Normandy-style mansion for $5.9 million in July, a year after J. P. Morgan Chase & Co. filed a foreclosure complaint against the couple to collect a loan originally issued in October 2005 for $4.6-million loan.

Mr. and Mrs. Miller didn't return a message. Their listing agent, Marina Vernon, of Lake Forest-based brokerage Griffith Grant & Lackie, declines to comment.

The massive residence, which sits on three-acres just west of Green Bay Road, was created by well-known architect Philip Lippincott Goodwin, best known as the designer of New York City's Museum of Modern Art.

Completed in 1928, the mansion has six bedrooms, nine full bathrooms, an indoor swimming pool and a grass tennis court. Named for its original owner, Noble Judah, a prominent lawyer and Illinois state representative, the property was added to the National Register of Historic Places in 1990.

The buyer was a trust whose beneficiaries couldn't be identified.

In the case of Mr. Lederer, Schaumburg-based American Chartered Bank filed a foreclosure lawsuit against him in July 2009 to collect on a loan for more than $6-million on the Lake Road property.

Less than a year later, the mansion, with seven bedrooms and six bathrooms, sold for $5.2 million, about 13% less than the loan amount.

Mr. Lederer, who is best known for selling the Web site Art.com to Getty Images Inc. in 1999 for $115 million, didn't return a message.

Chicago Short Sale Specialists specializes in Chicago Short Sales and surrounding suburbs. We are considered experts in short sales and short sale negotiations. If you are considering a short sale please visit our website for a free confidential consultation on how a short sale can benefit you. Visit www.chicagoshortsalespecialists.com

I wanted to share this recent article to everyone that is following the Chicago Short Sale Specialists Blog. Chicago Short Sale Specialists specializes in Chicago Short Sales as well as all 50 states across the country. We help homeowners prevent foreclosure by short selling their properties. I found the following article and I wanted to share it.

By, Joy Leopold

On Thursday the National Association of Realtors (NAR) reported that home sales increased in 49 states during the fourth quarter of 2010, with 78 markets experiencing price gains from the fourth quarter of 2009.

Despite sale price declines in 71 metropolitan areas, the national average of home sales rose 15.4 percent to an annual rate of 4.80 million in Q4 from 4.16 million in the third quarter.

The national median existing single-family home price rose 0.2 percent to $170,600. Distressed homes accounted for 34 percent of sales in the fourth quarter.

“Home sales clearly recovered in the latter part of 2010 and are helping to absorb the inventory, including many distressed properties. Even with foreclosures continuing to

enter the inventory pipeline, they’ve been selling well and housing supplies have trended down,” said Lawrence Yun, NARchief economist. “A recovery to normalcy requires steady trimming of the inventories.”

Yun added, “An improving housing market and job growth will go hand in hand.” He anticipates about 150,000 to 200,000 jobs will be added to the economy and projects 300,000 additional home sales in 2011.

In the Northeast, median existing single family home prices increased 2.3 percent to $240,400 in the fourth quarter from a year earlier, and home sales increased 15 percent from the third quarter of 2010.

In the Midwest, the median home price rose 0.5 percent from a year earlier, and home sales increased 11.4 percent from the previous quarter.

In the South, the median home price rose 0.3 percent from the fourth quarter of 2009 and jumped 11.4 percent in the fourth quarter from the third quarter.

The median existing single-family home price in the West actually declined by 2.9 percent from the fourth quarter of 2009, but existing home sales rose 19.9 percent in the fourth quarter to a level of 1.17 million.

“A good portion of the sales activity in the West has been driven by investors taking advantage of discounted foreclosures, with high levels of all-cash transactions,” Yun explained.

Chicago Short Sale Specialists specializes in Chicago Short Sales and surrounding suburbs. We are considered experts in short sales and short sale negotiations. If you are considering a short sale please visit our website for a free confidential consultation on how a short sale can benefit you. Visit www.chicagoshortsalespecialists.com

I wanted to share this recent article to everyone that is following the Chicago Short Sale Specialists Blog. Chicago Short Sale Specialists specializes in Chicago Short Sales as well as all 50 states across the country. We help homeowners prevent foreclosure by short selling their properties. I found the following article and I wanted to share it.

By, Steve Bucci

Dear Debt Adviser, This is in reference to refinancing a home. Basically, a $215,000 home in 2006 is now valued at $85,000. Refinancing allows for only 80 percent of the $85,000 current value, or $68,000. The adjustable rate on the loan has escalated to an 8.625 percent interest-only payment after five years and is scheduled to be reviewed every six months, with a maximum interest rate 14.625 percent. The current mortgage balance is $170,000. In order to refinance, I would have to pony up $87,000 to obtain a mortgage for $68,000 -- for a house that's valued at just $85,000. I'm 60 years old and my remaining earning potential is only two to three years. I have a small military retirement, some savings and hopefully Social Security to retire on. Any recommendations? 
-- Bob

Dear Bob, You have some decisions to make, the main one being whether it is in your best interest to try to stay in your home. I'm not sure about the math in your question. It seems to be off by $15,000 (a $68,000 mortgage and $87,000 from which you will only pay $155,000 of the $170,000 you owe). But the math won't change my advice. To help you make your decision, I'd like you to weigh these considerations.

Begin by asking when you are planning to retire. What are your plans? Will they include accessing credit? Will you want to move and buy a new home or condo?

You state in your letter that you have only two to three years of earning potential remaining. If that's the case, you don't have long for your home's value to rebound if you opt to put in the cash necessary to refinance at 80 percent loan-to-value. You may want to consider getting out of the home with a foreclosure or short sale.

If you'll be looking to buy another home once you stop working, be aware that a foreclosure rather than a short sale will exclude you from getting a Fannie Mae-backed loan for seven years. So, for seven years, if you go mortgage shopping, you may have to consider a nonconforming product from the Federal Housing Administration, or FHA. These loans, which do not follow Fannie Mae underwriting guidelines, typically require mortgage insurance premiums and, for those with low credit scores, higher interest rates and steeper down-payment requirements. You can expect that your credit score will be in the dumps from a foreclosure for two to four years, everything else being equal.

Even so, $85,000 is a lot of money. So it may be worth considering a short sale. I wouldn't feel too bad for the bank. The bank knew loaning you the money for your home was a risk and despite its protests to the contrary, many knew they were making unsound loans and didn't care as long as they could pass them on to someone else.

One last point: Any money from your mortgage used for something other than your home purchase -- such as furniture, a car, or paying off credit card debt -- may be taxable. If it was all used for your home, you will qualify for full debt forgiveness under the Mortgage Forgiveness Debt Relief Act of 2007. The act exempts from income taxes any housing debt canceled (forgiven) by the bank, up to $2 million ($1 million if married, but filing separately). But the law expires in 2012. So if you decide to give the house back to the bank, be sure to do it before then.

To help you make the best decision, consider a dispassionate professional point of view. An accountant or financial planner can give you a complete assessment of the impact either way. I also suggest that you go over your situation and mortgage with an attorney who is experienced with mortgage issues.

Chicago Short Sale Specialists specializes in Chicago Short Sales and surrounding suburbs. We are considered experts in short sales and short sale negotiations. If you are considering a short sale please visit our website for a free confidential consultation on how a short sale can benefit you. Visit www.chicagoshortsalespecialists.com

I wanted to share this recent article to everyone that is following the Chicago Short Sale Specialists Blog. Chicago Short Sale Specialists specializes in Chicago Short Sales as well as all 50 states across the country. We help homeowners prevent foreclosure by short selling their properties. I found the following article and I wanted to share it.

Issued by, Robert Kenyon

PRLog (Press Release) – Jan 28, 2011 – Although not great, certainly not painless and unlikely to improve dramatically, the path to closing on a property in a short sale has made strides and those sales are likely to lead the market in 2011. With short sale negotiators putting out their shingles in droves, it behooves those who are considering a sale or for those in position to buy to carefully study the options before making their choice regarding who will represent them during the process. Recently some banks have transitioned to an automatic, computer driven process, where-in no longer can one call to discuss where the file might be in the stack of things. E-mail transmissions become the source of information and they are curt and to the point. Either the sale is moving forward or it is not.

The best short sale negotiators have a banking background, knowing who to call, even circumventing the computer-driven process and as importantly, knowing how and when to push, manage the deal and bring the process into a successful closing.

The key is knowing that short sales require expertise, however, you need not be the expert. Choosing the right person, who clearly has the background and who certainly has the expertise, along with the confirmation that you and he or she work well together will be the perfect fit. Nearly to a person, Realtors who work with short sales will confirm that having the right short sale negotiator not only relieves them of the headaches involved with the process, but also adds great promise to the possibility that the deal will ultimately make its way through escrow with success.

Chicago Short Sale Specialists specializes in Chicago Short Sales and surrounding suburbs. We are considered experts in short sales and short sale negotiations. If you are considering a short sale please visit our website for a free confidential consultation on how a short sale can benefit you. Visit www.chicagoshortsalespecialists.com