Ron and Kat Becker - Short Sale Specialists

DON'T spend the money you have on hand. This one happens more often than you might imagine. When you fill out an application - and say you have $31,500 in your savings account and $12,000 in your checking those numbers are verified and your closing costs/down payment has to come from that. If you bring a check from some account you never told your loan officer about that will halt the closing until those funds can be verified.

DON'T charge anything on any credit. First time buyers are the worst. They hear the words "your mortgage application is approved" and they're so excited, they immediately start applying for credit cards (often to buy furniture for their new home).

DON'T make any large deposits you can't provide a paper trail on. Usually on deposits over $500, you'll have to provide a verifiable paper trail of where that money comes from. The purpose of this is to show an interested party is not giving you the funds to make it happen. You can get a gift from a relative or "significant other" provided those funds are traced as well. In that case you need a specific letter - you can get the form from your loan officer.

DON'T quit your job. I know, this seems like a no-brainer, but it needed to be said. Time your changes to make sure they don't interrupt or kill your chances at getting that new home!

Sure, there are other ways to blow it but these seem to be the most common and should also be the most obvious.

This question was proposed online by a local seller:

How do other sellers feel when their house it empty and has been on the market for a very long time approx 180 days?

Honest agents would answer the questions like this:

The question you should be asking yourself Ms. Seller is, "Do you WANT to or NEED to sell your home"? Ultimately, you are in control of whether or not and for how much you allow your home to linger on the market.

Unfortunately, the market is not the same as it once was. Homes are not selling in the same time frame or at the same price as they used to. You say an offer came in at "30% less than asking price". Did you come to the listing price or did your agent?

There are only 3 things that can change to affect the sale of your home. Location, Condition AND Price. Unless you are unable to pick up your house and move it anywhere in the world to get a better price, then you cannot do anything about your location.

If your property smells like dog, cat, smoke or has a stale smell from being vacant, (and lady bugs and spiders have moved in) then you need to address condition.

HOWEVER, if you cannot change location and your condition is impeccable then the only thing you can change is PRICE. And, just to clarify, price does not mean what you paid for it, or what you think it's worth. It means what a buyer is willing to pay for your home.

Generally, the first offer you get on your home will be your highest and best. Whether or not you choose to work with the first buyer is your choice. But, you are the only one that can affect the sale of your home, ultimately. At no point, should you ever negotiate from an emotional standpoint.

Good advice from The Becker Group and all other honest agents in Antioch, Spring Grove, Gurnee, Lindenhurst, Grayslake and surrounding cities in Lake County. We'd rather you get your home sold. We aren't in the habit of listing homes. It is our job to get your home SOLD! Good advice is good advice.

Get more great advice at http://www.BeckerGroupOnline.com

Kat and Ron Becker

This question is being asked more and more in Lake, McHenry and Kenosha County here in the Chicago / Milwaukee area.

Our resident real estate attorney, Terry Lyons, wanted to share this information with as many people as possible. Here's the deal...

Before 2009, a rental agreement / lease was automatically terminated by a foreclosure, and the tenant was expected to move out as soon as possible.

On May 20, 2009, Congress passed the Protecting Tenants at Foreclosure Act as part of the Helping Families Save Their Homes Act, and here are the current rules and protections for tenants (valid through December 31, 2012):

1. The tenant must qualify as a valid renter: Not the owner or former owner, not a child, spouse, or parent of a former owner; Rent must be close to fair market rent; If the rent is much less than fair market rent, must be subsidized by a government program (such as Sec. 8)

2. If the new owner (bank or purchaser at the foreclosure sale or afterwards) plans to live in the house, the tenant must be given 90 days notice from the foreclosure date to move out.

3. If the tenant does not have a written lease or is leasing month to month, the tenant is still entitled to the 90 days notice.

4. If the new owner (bank or purchaser at the foreclosure sale or afterwards) does not plan to live in the house, the tenant is allowed to stay for the remaining term of the lease. The new owner would be entitled to all rent and subsidized lease payments.

5. The new landlord is not responsible for returning old security deposits to the tenant.

6. The tenant is still responsible for all rental payments and may need to save some payments until the new landlord is identified.

For more information on "How to Go From Renting to Owning" visit our website at BeckerGroupOnline.com

After nearly a full year of home sales gains statewide, the rush to meet the homebuyer tax credit deadline combined with weak job and economic reports led to a lull in Illinois home sales activity in July.

According to the Illinois Association of REALTORS® latest report, statewide total home sales (which include single-family and condominiums) in July 2010 were down 29.7 percent, totaling 8,135 homes sold compared to July 2009 sales of 11,566 homes. The median price in July 2010 was $160,000, down 4.3 percent from $167,185 in July 2009. The median is a typical market price where half the homes sold for more, half sold for less.

Year-to-date sales remain in positive territory, up 15.0 percent January through July 2010 with 65,146 sales compared to 56,650 home sales for the same period in 2009. The year-to-date median sales price was off -0.9 percent to $155,000 from $156,330 for 2009.

We expected a lull in home sales after the expiration of the home buyer tax credit but not by this much. The tax credit did help us reduce the housing inventory, however.

“The underlying issue for stability in the housing market remains a healthy job market. We need some significant boosts in economic development, employment and consumer confidence to reduce foreclosures and create some equilibrium between supply and demand for housing. Slower sales and rising inventories will force more downward pressure on prices. The hangover from the expiration of the tax credit in April may extend into fall with forecasts for sales on an annual basis for the next three months indicating a continuation of the July experience,” said Dr. Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory (REAL) of the University of Illinois.

“The anemic growth of private sector jobs is dampening chances for a more robust recovery. The expectation has to be that the slowing of the national economy will affect Illinois’ growth prospects over the remaining months of the year.” The unemployment rate nationally was unchanged in July at 9.5 percent; the Illinois unemployment rate lowered -0.1 point to 10.3 percent in July from the previous month. The monthly average commitment rate for a 30-year, fixed-rate mortgage for the North Central region was 4.58 percent in July 2010, down from 4.74 percent during the previous month, according to the Federal Home Loan Mortgage Corporation. Last year in July it averaged 5.52 percent.

"While it still remains a great time to buy, buyers are guarded as they consider their own financial stability and job security in the current market, hindering many from making a purchase.” According to the IAR report, total home sales (single-family and condominiums) comparing July 2010 to July 2009 were up in 16 of 100 Illinois counties reporting with 39 of 100 counties posting median price increases.

In our area, IAR reported gains in the median price for the month: Lake, up 13.3 percent to $238,000; McHenry, up 1.4 percent to $182,500. Sales and price information is generated from a survey of Multiple Listing Service sales reported by 37 participating Illinois REALTOR® local boards and associations. The Illinois Association of REALTORS® is a voluntary trade association whose 46,000 members are engaged in all facets of the real estate industry. In addition to serving the professional needs of its members, the Illinois Association of REALTORS® works to protect the rights of private property owners in the state by recommending and promoting legislation that safeguards and advances the interest of real property ownership.

Taken in part from Illinois Association of Realtors August 24th report.

A lot of potential home buyers are confused as to what the minimum credit score is in order to get a decent home mortgage loan. Typically, a credit rating of 640 or more will get you qualified for a home loan. Many banks that in the past quickly approved loans by easing their underwriting techniques, have dug themselves into a significant hole that will take them many years to climb out of.

Remember the promotions of 100% Financing and "No Doc" Loans? The majority of today's financial probelms are the direct result of those poorly thought out programs. Today banks are making sure they don't repeat their past mistakes. Today, the vast majority of banks have tightened up their lending standards. Borrowers are being turned down at an alarming rate. Here are the top six reasons banks are denying loan requests:

1. Poor Credit: The borrower may have a sizeable down payment or equity in the home they want to purchase, but if their credit score is under today's requirements, getting a loan or refinancing their current home loan from a traditional bank can be quite challenging. Even FHA loans now have a much higher credit score of 693 than average.

2. Lack of Income: The borrower does not have enough consistent proof of income for the last 2-5 years. This presents a huge problem for retired borrowers.

3. False Statements on Applications: Banks have learned their lesson and are no longer putting up with borrowers lying on their aplications.

4. Debt: The borrower has excessive debt and their debt-to-income ratio exceeds the bank's guidelines.

5. Unemployment: Most lenders would like to see at least 2 years of stable work to issue a loan approval.

6. Self employment: Lenders are looking at self-employed applicants with a lot more scrutiny making it very tough for those borrowers to get approved.

Obviously the improved standards are better for the industry and our overall economy, but at the same time, home buyers are quickly realizing that reputable credit and stable income aren't always enough to qualify for a loan with most lenders.