Plainfield, IL., Naperville Il. Real Estate, Homes for sale
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Naperville IL, Plainfield Illinois Real Estate - Rental Homes
- List the home
Bank authorization forms signed
Send bank authorization to the bank(s)
Market the home
Follow up with bank(s)
Fill out financial form(s)
Gather proof of financial information
Send BPO, financial form and financial information to bank(s)
Find a buyer
Negotiate purchase price/terms with buyer
Prepare net sheet for bank(s)
Send purchase contract, listing agreement, net sheet to bank(s)
Follow up with bank and gather other bank requested information
Send bank requested information back to bank(s)
Finalize short sale with the bank(s)
Order payoff letter from bank(s)
Close the property - A Reverse Mortgage is a loan specifically designed for homeowners older than 62 years old.
- A homeowner borrows from the equity in their home. It can then be used for any purpose and does not need to be repaid until the homeowner sells the home, permanently moves out, or passes away.
- Rather than paying into a mortgage, homeowners tap into their equity for retirement support.
- The lending company makes regular payments to a homeowner during a specific period of time. The amount of payment is determined by the amount of equity the homeowner has in the home.
- The final payment is calculated not to exceed the home's selling price.
- Lender must agree to write down the loan as 90% of the appraised value.
- Eligible mortgages are those that were originated on or before January 1, 2008.
- Borrowers must have a debt to income ratio higher than 31 percent.
- Your home value
- What a particular home sold for
- Short sale assistance
- Credit repair counseling
- Sellers welcome
- First time buyers encouraged
- Do you qualify for a loan?
- Union employee loans available
- 3% down programs
- Inquire about rental homes
- One on one consultations
- All questions and concerns welcome
- Your home value
- What a particular home sold for
- Short sale assistance
- Credit repair counseling
- Sellers welcome
- First time buyers encouraged
- Do you qualify for a loan?
- Union employee loans available
- 3% down programs
- Inquire about rental homes
- One on one consultations
- All questions and concerns welcome
- The value of your home relates to local sale prices. The same home, located elsewhere, would likely have a different value.
- Sale prices are a product of supply and demand. If you live in a community with an expanding job base, a growing population and a limited housing supply, it's likely that prices will rise. Alternatively, it's important to be realistic. If the local community is losing jobs and people are moving out, then you'll likely have a buyer's market.
- Owner needs can impact sale values. If owner Smith "must" sell quickly, he will have less leverage in the marketplace. Buyers may think that Smith is willing to trade a quick closing for a lower price -- and they may be right. If Smith has no incentive to sell quickly, he may have more marketplace strength.
- Sale prices are not based on what owners "need." When an owner says, "I must sell for $300,000 because I need $100,000 in cash to buy my next home," buyers will quickly ask if $300,000 is a reasonable price for the property. If similar homes in the same community are selling for $250,000, the seller will not be successful.
- Sale prices are NOT the whole deal. Which would you rather have: A sale price of $200,000, or a sale price of $205,000 but where you agree to make a "seller contribution" of $5,000 to offset the buyer's closing costs, pay a $2,000 allowance for roof repairs, fund two mortgage points, re-paint the entire house and leave the washer and dryer?
- Owe more on your Naperville or Plainfield area property than what you could sell it for, especially after real estate commission, closing costs, late payments, interest, etc?
- Have difficulty covering your expenses each month?
- Not have money in the bank to cover the difference of what you could sell your house for and what you owe the bank?
- Feeling the stress mounting with each missed payment and phone call from your bank?
- Have difficulty covering your expenses each month?
- Getting confused as to what your options are at this point?
- Obtain a free credit report and look for and report any inaccurate information.
- Do not give your social security number, mother's maiden name or account numbers to strangers who contact you, especially by phone, internet or mail. Legitimate financial or government organizations that do business with you already have this information and will not ask for it by calling you.
- Make sure your full credit card number or expiration date does not appear on receipts.
- Don't leave outgoing mail in your mailbox. Take it to a collection box or your local post office.
- Tear or shred charge receipts, copies of credit applications, insurance forms, physician statements, bank checks and statements, expired charge cards and credit offers you get in the mail.
- Minimize the amount of personal financial information you carry. Memorize passwords and PI numbers instead of carrying them with you.
- The bank is going to what to see your entire financial picture. This means you will need to provide copy of back taxes, paycheck stubs, bank statements, personal financial statement, etc. They will want to know what all your assets are.
- The bank may want you to sign a promissory note for the difference, now it will most probably be at a hugely reduced amount and may include monthly payments.
- When the bank gives the final approval of the short sale, they may request that the escrow close in as little as 30 days, sometimes sooner.
- As the seller, you can not receive any proceeds from the sale. Period.
- Your Real Estate agents, and Title company, may have to work for reduced fees.
- The banks are incredibly overwhelmed with short sales and many times a decision can take upwards of 90 days; however, recently the approval process has been streamlined at many lenders.
- Your property may be foreclosed on during the short sale process because the bank can not process the short sale in time.
- Do not expect to receive any information on a regular basis. There may be weeks that go by with no news from the lender. This is perfectly normal.
- The bank will want to get a BPO (broker price opinion) and/or an appraisal of your house.
- Be patient. This is the best policy. Try to avoid being stressed out over something that you can not control. If you have a well trained agent, you are in good hands.
- Owe more on your Naperville or Plainfield area property than what you could sell it for, especially after real estate commission, closing costs, late payments, interest, etc?
- Have difficulty covering your expenses each month?
- Not have money in the bank to cover the difference of what you could sell your house for and what you owe the bank?
- Feeling the stress mounting with each missed payment and phone call from your bank?
- Have difficulty covering your expenses each month?
- Getting confused as to what your options are at this point?
- Exclusive right of Sale Listing Agreement
- A copy of the executed "AS-IS" Sale and Purchase contract
- Letter of Authorization to the bank to release Information.
- HUD-1, which is the estimated net sheet from a title company. The settlement statement will show all of the expenses related to the sale with the seller receiving zero.
- Hardship letter. A handwritten letter may be better to explain the borrower's situation and requesting a short sale. It should describe why the borrower cannot make their mortgage payments and their fear of possible foreclosure. It should be a plea for the lender to consider a short sale. Document to support Hardship (termination of employment, substantial medical bills, disability letter, etc.
- Personal Financial Statement form 1126, which includes current debt, payments and a household budget.
- Two years of tax returns and W-2's. Remember to provide signed copies of tax returns.
- Two most recent bank statements and retirement account statements. Be sure to copy both side of double-sided statements.
- Two most recent pay stubs
- A current Comparative Market Analysis (CMA) from a real estate broker or appraiser
- Buyers proof of Funds or Loan Approval letter
- Lastly note on the submission package that they need to order the BPO immediately and a negotiator needs to be assigned.
- Bank of America - REO Search
- Bank One - REO Search
- Beal Bank - Commercial
- CitiMortgage - REO Search
- Compass Bank - REO Search
- Countrywide - REO Search
- Downey Savings & Loan - REO Search
- Freemont Investment & Loan - REO Search
- First Union Bank - REOs
- GreenPoint Financial - REO Search
- GRP Financial Services Corporation - REO Search
- Home Loan and Investment Bank - REO Search
- HSBC - REO Search
- IndyMac Bank - REO Search
- IAS - Integrated Asset Services - REO Search
- M&T Bank - REO Search
- Ocwen Financial Corporation - REO Search
- People's Bank - REO Search
- U.S. Home Mortgage - REO Search
- Wilshire Credit Corporation - REO Search
- 1st National Bank of Scotia - New York
- Coast and Country - Southern California
- Community Commerce Bank - Southern California
- Lexington State Bank - North Carolina
- National Bank of Arizona - Arizona
- New South Federal Savings Bank - Southern US
- nNYRealty.com - New York
- Pacific State Bank - California
- Texas State Bank - Texas
- Unity Bank - NJ, Pennsylvania
- Virginia Housing Development Authority (VHDA) - Virginia
- Western Bank - Puerto Rico
- Zions Bank - CO, ID, MT, UT
- REO Source - Good National REO Search Site
- REO Talk - Publishers of REO Talk Magazine
Are you looking to rent a single family home or townhome?
Then contact me today. My services to you are absolutely FREE. The landlord or sometimes seller pays my fee so you don't have to. Let me do the work for you. There are homes right now in the Multiple Listing Service for rent. I have access to these homes. Let me find one for you. It's easy.....all I need to know is what you are looking for and I will email you rental properties. You let me know which ones you are interested in and then we'll go see a couple. Next we write a rental agreement and we are on track to get you into that new rental property.....email me today!
About the author:
Cheryl Bowers is a Chicagoland Area Residential Real Estate Expert, who can assist you with the purchase and/or sale of real estate in Plainfield, Naperville, Aurora Illinois or any place in the country. She, also, has experience with residential rentals. Cheryl has created a team of professionals throughout the Chicago suburbs to ensure that you enjoy a smooth transition to your new area. Please visit www.cherylbowers.com for your real estate needs. Please give me a call if you have questions about the Plainfield, Naperville, and Aurora real estate market.
P.S. If you are listing your home as a short sale in DuPage, Will, Kane, or Kendall Counties in Illinois make sure you hire an agent who knows how to do short sales and has the experience to get the job done. Call me at 630-712-1921 to find out more about Short Sales in the Chicagoland Area.
Cheryl Bowers, REALTOR® (630) 712-1921
(Copyright © 2009 By Cheryl Bowers, Realtor. All Rights Reserved.)
Plainfield IL, Naperville Illinois Real Estate - "The Short Sale Package"
"The Short Sale Package"
Getting a short sale package together can be a chore, but if done correctly it can yield you a huge return. Every mortgage company has slightly different requirements but they typically all ask for some of the same things.
The best way to find out exactly what lenders are looking for in their "Short Sale Package" is to ask.
An authorization to release information is the first thing obtained. This allows the realtor and attorney to access the account. Once authorization is obtained, the loss mitigation department is contacted and the short sale requirements are asked for.
Typically, a package consists of the following:
- Authorization to release information
- An agreement of sale to purchase the property
- HUD 1 settlement statement estimate of closing costs
- Pay stubs
- Bank statements
- Budget sheet, including income and expenses
- Past two years tax returns
- Recent pay stubs
- Letter of financial hardship
Some mortgage companies will fax you exactly what their requirements are. Some will even include worksheets to fill in and sign. Either way, it is best to have the homeowner get these documents back as soon as possible because they may be requested later on.
Every mortgage company will have different requirements for a short sale so each package will be different. Asking the lender is the best way to find out what is needed.
About the author:
Cheryl Bowers is a Chicagoland Area Residential Real Estate Expert, who can assist you with the purchase and/or sale of real estate in Plainfield, Naperville, Aurora Illinois or any place in the country. Cheryl has created a team of professionals throughout the Chicago suburbs to ensure that you enjoy a smooth transition to your new area. Please visit www.cherylbowers.com for your real estate needs. Please give me a call if you have questions about the Plainfield, Naperville, and Aurora real estate market.
P.S. If you are listing your home as a short sale in DuPage, Will, Kane, or Kendall Counties in Illinois make sure you hire an agent who knows how to do short sales and has the experience to get the job done. Call me at 630-712-1921 to find out more about Short Sales in the Chicagoland Area.
Cheryl Bowers, REALTOR® (630) 712-1921
(Copyright © 2008 By Cheryl Bowers, Realtor. All Rights Reserved.)
Plainfield IL, Naperville Illinois Real Estate - Short Sale Riches
Short Sales Riches "Newer Program"
This is completely new. And I'm excited. But you've got to move on this fast! I just discovered that Chris McLaughlin and Nate Jurewicz created a complete "autopilot" real estate system that puts money in your pocket ... and you hardly have to do a thing.
Seems hard to believe. But they got PROOF. In fact, Nate loves to brag how he doesn't even have to leave his pad to make ... get this ... 5 to 6 figures PER MONTH! (I'll show you the proof in just a minute)
But there's a catch ... these two guys aren't willing to let ANYONE in on their system unless they first go to their site and read their fr*ee eBook first:
http://www.shortsalesriches.com/cmd.php?af=901385.
They only want to deal with serious people. I was not kidding when I said 5 to 6 figures per month ... for most of us, that's serious cash. So they're not going to deal with anyone who's stuck on stupid. Or got a wish-bone for a back bone. Because if you can't make a ton of cash with this system, you better check and make sure you got a pulse. It's that simple. But you've got to show that you're committed ... the first step in showing that you can take on a commitment is by being able to following a few simple directions.
The first one is to go to: http://www.shortsalesriches.com/cmd.php?af=901385 and pick up a their F*REE eBook. Fast. Because word has it, once they get the right number of investors who understand their system, they're closing the doors to new ones. I mean, if you could rake in that much dough per month, I'll bet you wouldn't want to deal with anyone who wasn't at least committed enough to download and read a no-cost eBook.
So what are you waiting for? Go! Click Below on the Book!
About the author:
Cheryl Bowers is a Chicagoland Area Residential Real Estate Expert, who can assist you with the purchase and/or sale of real estate in Plainfield, Naperville, Aurora Illinois or any place in the country. Cheryl has created a team of professionals throughout the Chicago suburbs to ensure that you enjoy a smooth transition to your new area. Please visit www.cherylbowers.com for your real estate needs. Please give me a call if you have questions about the Plainfield, Naperville, and Aurora real estate market.
P.S. If you are listing your home as a short sale in DuPage, Will, Kane, or Kendall Counties in Illinois make sure you hire an agent who knows how to do short sales and has the experience to get the job done. Call me at 630-712-1921 to find out more about Short Sales in the Chicagoland Area.
Cheryl Bowers, REALTOR® (630) 712-1921
(Copyright © 2009 By Cheryl Bowers, Realtor. All Rights Reserved.)
Plainfield IL, Naperville Illinois Real Estate - The ABC's of Short Sales
The ABCs of Short Sales
A short sale is what I like to call a "less bad" alternative to foreclosure. It works like this: the homeowner sells the home for a market price that is less than - short of - the amount the homeowner owes on the mortgage. The owner then pays the lender - who, of course, must agree to the deal - and the lender forgives the difference between the sale price and the mortgage amount (so the homeowner doesn't have to come up with, say, $30,000 in cash).
Why would a lender agree to such a deal? Because the actual process of foreclosing on a home is very expensive for the lender - often costing upwards of $25,000 and a lot of time (time that the lender isn't getting paid interest and principal on the loan). So it can often be in the lender's best interest to simply cut its losses and sell short.
You can invest in short sales
A short sale can be a real win-win-win for you - the investor, the homeowner, and the lender. When you buy a house after the owner is already delinquent (meaning more than 90 days past due, and/or the lender has already started the foreclosure process) but before the lender actually forecloses on the home, it's called a pre-foreclosure, and you'll be part of a short sale. Here's how to do it:
1. Know your market. If you don't already live where you plan to invest, make sure you get to know your investment market well - what neighborhoods you should stay away from, where great hidden deals might be, where the hottest new development is, etc.
2. Develop an investment strategy. Pre-foreclosure investing is like any other type of real estate investing - develop a strategy for what you want to accomplish, the risks you are willing to take, and how long you plan to be investing and then stick to that strategy.
3. Develop your best practices. There are a lot of pre-foreclosure buying techniques out there. Decide which is best for you, given your investment strategy.
4. Be a bit skeptical. Just because a home is in pre-foreclosure doesn't mean it's automatically a good deal.
5. Ask for help. Pre-foreclosure investing takes a lot of work. Invest in the help of a trustworthy team. Leverage a real estate agent experienced in short sales to help you determine how to make an offer that's fair for you and the seller (the bank), based in part of what other similar pre-foreclosure or foreclosed homes in the same neighborhood have recently sold for.
6. Make friends with mortgage lenders. Often, you'll get the best deal if you can negotiate a good purchase price with the seller and get the lender to forgive a portion of the debt (the difference between the sales price and the loan balance, for example).
7. Move fast, but not too fast. You'll need to act quickly once you find a pre-foreclosure property that you want to buy - before other investors beat you to it. At the same time, you don't want to be too rushed or you may make a decision you'll regret later.
8. Be committed. Pre-foreclosure investing is not for the weekend investor. It takes discipline and commitment. Even with the help of foreclosure listing services, you'll still have to do a lot of legwork to contact the owner, arrange the deal, fix up the house, and re-sell it before you see your investment return.
9. Know the law. There's more legalese involved in a short sale than in a traditional home sale. Plus, foreclosure laws differ from state to state. Read up on your state's foreclosure laws and ask your real estate agent to recommend a good real estate attorney with experience helping people purchase homes in pre-foreclosure.
10. Remember price + 5% (at least). Pre-foreclosure homes tend to need repairs- sometimes minor, sometimes major. Always, always have the home inspected by a professional home inspector before you sign a sales agreement and add in the cost of the repairs the inspector recommends. If you only think about the purchase price when you're calculating potential return on your investment, you'll be sorely disappointed. Add at least 5% - or better yet, get a quote on repair costs from a professional contractor.
About the author:
Cheryl Bowers is a Chicagoland Area Residential Real Estate Expert, who can assist you with the purchase and/or sale of real estate in Plainfield, Naperville, Aurora Illinois or any place in the country. Cheryl has created a team of professionals throughout the Chicago suburbs to ensure that you enjoy a smooth transition to your new area. Please visit www.cherylbowers.com for your real estate needs. Please give me a call if you have questions about the Plainfield, Naperville, and Aurora real estate market.
P.S. If you are listing your home as a short sale in DuPage, Will, Kane, or Kendall Counties in Illinois make sure you hire an agent who knows how to do short sales and has the experience to get the job done. Call me at 630-712-1921 to find out more about Short Sales in the Chicagoland Area.
Cheryl Bowers, REALTOR® (630) 712-1921
(Copyright © 2009 By Cheryl Bowers, Realtor. All Rights Reserved.)
Plainfield IL, Naperville Illinois Real Estate - Common Elements of the Short Sale Process
Short Sale will in NO Way affect your Credit as much as a Foreclosure will!!
Don't let the bank force you into foreclosure, a defiency judgement, wage garnishments, asset liens, and bankruptcy.
My Service is totally FREE to You -- The Bank Will Pay Me!
I operate in Will, DuPage, Kane, and Kendall Counties
Your credit will recover in as little as 2 years. This is far better than the 7 to 10 years that most homeowners in your situation will face.
Below is the most common elements of the short sale process.
There is help in these times of uncertainty, please contact me with any questions and/or assistance. If I do not know the answer I will get it for you. I will never mislead or misinform you. I am here to help.
About the author:
Cheryl Bowers is a Chicagoland Area Residential Real Estate Expert, who can assist you with the purchase and/or sale of real estate in Plainfield, Naperville, Aurora Illinois or any place in the country. Cheryl has created a team of professionals throughout the Chicago suburbs to ensure that you enjoy a smooth transition to your new area. Please visit www.cherylbowers.com for your real estate needs. Please give me a call if you have questions about the Plainfield, Naperville, and Aurora real estate market.
Cheryl Bowers, REALTOR® (630) 712-1921
(Copyright © 2008 By Cheryl Bowers, Realtor. All Rights Reserved.)
Plainfield IL, Naperville Illinois Real Estate - Reverse Mortgages
Reverse Mortgages
What is a Reverse Mortgage?
Please contact me for more in depth information about reverse mortgages and real estate. There is help in these times of uncertainty, please contact me with any questions and/or assistance. If I do not know the answer I will get it for you. I will never mislead or misinform you. I am here to help.
About the author:
Cheryl Bowers is a Chicagoland Area Residential Real Estate Expert, who can assist you with the purchase and/or sale of real estate in Plainfield, Naperville, Aurora Illinois or any place in the country. Cheryl has created a team of professionals throughout the Chicago suburbs to ensure that you enjoy a smooth transition to your new area. Please visit www.cherylbowers.com for your real estate needs. Please give me a call if you have questions about the Plainfield, Naperville, and Aurora real estate market.
Cheryl Bowers, REALTOR® (630) 712-1921
(Copyright © 2008 By Cheryl Bowers, Realtor. All Rights Reserved.)
Plainfield IL, Naperville Illinois Real Estate - Foreclosure Relief with Hope for Homeowners
Foreclosure Relief
Approximately 400,000 struggling homeowners could avoid foreclosure with a new FHA program, Hope for Homeowners. The program began October 1 of this year and ends September 30, 2011.
FHA will help homeowners with subprime loans refinance to an FHA insured 30 year fixed rate mortgage.
What's the catch.......
Homeowners must agree to share the future equity of the home with FHA when the home is sold or refinanced. After five years, the equity split is 50 percent.
There is help in these times of uncertainty, please contact me with any questions and/or assistance. If I do not know the answer I will get it for you. I will never mislead or misinform you. I am here to help.
About the author:
Cheryl Bowers is a Chicagoland Area Residential Real Estate Expert, who can assist you with the purchase and/or sale of real estate in Plainfield, Naperville, Aurora Illinois or any place in the country. Cheryl has created a team of professionals throughout the Chicago suburbs to ensure that you enjoy a smooth transition to your new area. Please visit www.cherylbowers.com for your real estate needs. Please give me a call if you have questions about the Plainfield, Naperville, and Aurora real estate market.
Cheryl Bowers, REALTOR® (630) 712-1921
(Copyright © 2008 By Cheryl Bowers, Realtor. All Rights Reserved.)
Plainfield IL, Naperville Illinois Real Estate - Open House at Chase Bank in Oswego
Open House at Chase Bank
Saturday, November 15 from 10am-Noon
Only at Chase branch located at 3419 Orchard Road in Oswego
I will be hosting an open house at Chase bank to answer any questions you may have about the market on Saturday the 15th. Please stop on by to meet me and get any real estate related issues addressed. There will, also, be a mortgage consultant available to assist in any mortgage related questions that you may have.
Stop on by to find out:
I look forward to seeing you there!!
About the author:
Cheryl Bowers is a Chicagoland Area Residential Real Estate Expert, who can assist you with the purchase and/or sale of real estate in Plainfield, Naperville, Aurora Illinois or any place in the country. Cheryl has created a team of professionals throughout the Chicago suburbs to ensure that you enjoy a smooth transition to your new area. Please visit www.cherylbowers.com for your real estate needs. Please give me a call if you have questions about the Plainfield, Naperville, and Aurora real estate market.
Cheryl Bowers, REALTOR® (630) 712-1921
(Copyright © 2008 By Cheryl Bowers, Realtor. All Rights Reserved.)
Plainfield IL, Naperville Illinois Real Estate - Open House at Chase Bank in Oswego
Open House at Chase Bank
Saturday, November 15 from 10am-Noon
Only at Chase branch located at 3419 Orchard Road in Oswego
I will be hosting an open house at Chase bank to answer any questions you may have about the market on Saturday the 15th. Please stop on by to meet me and get any real estate related issues addressed. There will, also, be a mortgage consultant available to assist in any mortgage related questions that you may have.
Stop on by to find out:
I look forward to seeing you there!!
About the author:
Cheryl Bowers is a Chicagoland Area Residential Real Estate Expert, who can assist you with the purchase and/or sale of real estate in Plainfield, Naperville, Aurora Illinois or any place in the country. Cheryl has created a team of professionals throughout the Chicago suburbs to ensure that you enjoy a smooth transition to your new area. Please visit www.cherylbowers.com for your real estate needs. Please give me a call if you have questions about the Plainfield, Naperville, and Aurora real estate market.
Cheryl Bowers, REALTOR® (630) 712-1921
(Copyright © 2008 By Cheryl Bowers, Realtor. All Rights Reserved.)
Plainfield IL, Naperville Illinois Real Estate - Renting a home in Naperville or Plainfield?
Rental Homes
Did you know that I can assist you in finding a rental home? It's true! Let me be your guide in finding your next rental property. Whether it's a condo, townhome, or single family residence I can help.
Also, did you know that the landord takes care of my fee. It's true! What have you got to lose?
Contact me today.
About the author:
Cheryl Bowers is a Chicagoland Area Residential Real Estate Expert, who can assist you with the purchase and/or sale of real estate in Plainfield, Naperville, Aurora Illinois or any place in the country. Cheryl has created a team of professionals throughout the Chicago suburbs to ensure that you enjoy a smooth transition to your new area. Please visit www.cherylbowers.com for your real estate needs. Please give me a call if you have questions about the Plainfield, Naperville, and Aurora real estate market.
Cheryl Bowers, REALTOR® (630) 712-1921
(Copyright © 2008 By Cheryl Bowers, Realtor. All Rights Reserved.)
Plainfield IL, Naperville Illinois Real Estate - Fannie Mae/Freddie Mac
Fannie, Freddie Takeover Keeps Mortgages Flowing
The federal government's sweeping takeover of mortgage market giants Fannie Mae and Freddie Mac is expected to have positive short-term benefits to the real estate market and opens the door for the industry to shape the restructuring of the companies.
The NATIONAL ASSOCIATION OF REALTORS® commended the Treasury Department's decision, which it said will bring much-needed stability and continued liquidity to the nation's mortgage market.
"This demonstrates that the government is clearly committed to keeping the flow of capital uninterrupted, which is crucial to the housing sector and the economy," NAR President Richard F. Gaylord said in a statement Monday.
Fannie and Freddie own or guarantee almost half of the country's $12 trillion in outstanding home mortgage debt.
"Fannie Mae and Freddie Mac play a vital role in the U.S. economy by making fair and affordable mortgage loans available for home buyers and owners," Gaylord said. "Their critical mission must not be interrupted, and Sunday's announcement goes a long way in making sure that does not happen."
What the Plan Involves
Under the Treasury Department's action, the two government-sponsored enterprises are placed in a government conservatorship and overseen by two government-appointed chiefs, former Merrill Lynch vice chairman Herbert Allison at Fannie Mae and former U.S. Bancorp CFO David Moffett at Freddie Mac.
Daniel Mudd, who led Fannie Mae for the last few years, and Richard Syron, his counterpart at Freddie Mac, have been relieved of their jobs.
The federal government is taking up to an 80 percent stake in the companies and will review their financial condition on a quarterly basis, injecting money into their operations as needed. The government is directing the companies to help stabilize housing markets by requiring them to increase their mortgage funding over the next year and a half.
For the long-term, the companies and their regulator, the Federal Housing Finance Agency, will begin planning for a major reorganization of their operations, away from their current 100-percent, privately owned model.
According to news reports, one of the models being discussed is something akin to a public utility, in which the government sets limits on the amount of annual return on equity to shareholders.
Positive Real Estate Impact
For the real estate industry, the short term impact is expected to be positive, says NAR Chief Economist Lawrence Yun. With the government now explicitly backing the companies' mortgage obligations, the market for the GSE securities will be treated more like Treasurys, thereby exerting downward pressure on rates, he says.
That will help drive a positive cycle of investment as investors return to the market, further lowering rates and generating funds to lenders to expand their mortgage loan operations. That is expected to help speed up housing sales in markets across the country and help stabilize home prices.
The main down side to the federal intervention will be felt by the companies' current shareholders, who will no longer receive dividend payments and whose holdings are diluted by the equity stake of the federal government.
Looking ahead, the directive for the companies and their regulator to start work on their long-term restructuring opens the door for NAR to help shape that process, and the association already has a process underway to do that, say NAR legislative and regulatory affairs analysts.
- REALTOR® Magazine Online
Plainfield IL, Naperville Illinois Real Estate - What is my home worth?
What is your home worth?
All homes have a price, and sometimes more than one. There's the price owners would like to get, the value buyers would like to offer and a point of agreement which can result in a sale.
In considering home values, several factors are important:
If you are looking to sell your home in the Chicagoland area, give Cheryl a call at 630-712-1921.
About the author:
Cheryl Bowers is a Chicagoland Area Residential Real Estate Expert, who can assist you with the purchase and/or sale of real estate in Plainfield, Naperville, Aurora Illinois or any place in the country. Cheryl has created a team of professionals throughout the Chicago suburbs to ensure that you enjoy a smooth transition to your new area. Please visit www.cherylbowers.com for your real estate needs. Please give me a call if you have questions about the Plainfield, Naperville, and Aurora real estate market.
Cheryl Bowers, REALTOR® (630) 712-1921
(Copyright © 2008 By Cheryl Bowers, Realtor. All Rights Reserved.)
Plainfield IL, Naperville Illinois Real Estate - Do I qualify for a short sale?
Do I qualify for a Short Sale? Do You....
Are You Having Trouble Making The Payments? Are You....
Foreclosure Sale Date Approaching?• Are you behind on your payments?• Do you owe more than your home is worth?• Have you lost your job, fell ill, or lost a loved one?• Did your "ARM" adjust & you can't keep up?• Do you want to just walk away and not owe a dime? Many Luxury Homes are also facing foreclosure. If you have a Luxury home in the Naperville or Plainfield area....Yes, you can do a Short Sale on Luxury Homes. Call me and I can help!
About the author:
Cheryl Bowers is a Chicagoland Area Residential Real Estate Expert, who can assist you with the purchase and/or sale of real estate in Plainfield, Naperville, Aurora Illinois or any place in the country. Cheryl has created a team of professionals throughout the Chicago suburbs to ensure that you enjoy a smooth transition to your new area. Please visit www.cherylbowers.com for your real estate needs. Please give me a call if you have questions about the Plainfield, Naperville, and Aurora real estate market.
Cheryl Bowers, REALTOR® (630) 712-1921
(Copyright © 2008 By Cheryl Bowers, Realtor. All Rights Reserved.)
Plainfield IL, Naperville Illinois Real Estate - $7500 Tax Credit
The Housing and Economic Recovery Act of 2008 authorizes a $7,500 tax credit for qualified first-time home buyers purchasing homes on or after April 9, 2008 and before July 1, 2009.
1. Who is eligible to claim the $7,500 tax credit?
First time home buyers purchasing any kind of home-new or resale-are eligible for the tax credit. To qualify for the tax credit, a home purchase must occur on or after April 9, 2008 and before July 1, 2009. For the purposes of the tax credit, the purchase date is the date when closing occurs.
2. What is the definition of a first-time home buyer?
The law defines "first-time home buyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse. For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the first-time home buyer tax credit. Ownership of a vacation home or rental property not used as a principal residence does not disqualify a buyer as a first-time home buyer.
3. How do I claim the tax credit? Do I need to complete a form or application?
Participating in the tax credit program is easy. You claim the tax credit on your federal income tax return. No other applications or forms are required. No pre-approval is necessary; however, prospective home buyers will want to be sure they qualify for the credit under the income limits and first-time home buyer tests.
4. What types of homes will qualify for the tax credit?
Any home purchased by an eligible first-time home buyer will qualify for the credit, provided that the home will be used as a principal residence and the buyer has not owned a home in the previous three years. This includes single-family detached homes, attached homes like townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats.
5. Instead of buying a new home from a home builder, I have hired a contractor to construct a home on a lot that I already own. Do I still qualify for the tax credit?
Yes. For the purposes of the home buyer tax credit, a principal residence that is constructed by the home owner is treated by the tax code as having been "purchased" on the date the owner first occupies the house. In this situation, the date of first occupancy must be on or after April 9, 2008 and before July 1, 2009.
In contrast, for newly-constructed homes bought from a home builder, eligibility for the tax credit is determined by the settlement date.
6. What is "modified adjusted gross income"?
Modified adjusted gross income or MAGI is defined by the IRS. To find it, a taxpayer must first determine "adjusted gross income" or AGI. AGI is total income for a year minus certain deductions (known as "adjustments" or "above-the-line deductions"), but before itemized deductions from Schedule A or personal exemptions are subtracted. On Forms 1040 and 1040A, AGI is the last number on page 1 and first number on page 2 of the form. For Form 1040-EZ, AGI appears on line 4 (as of 2007). Note that AGI includes all forms of income including wages, salaries, interest income, dividends and capital gains.
To determine modified adjusted gross income (MAGI), add to AGI certain amounts such as foreign income, foreign-housing deductions, student-loan deductions, IRA-contribution deductions and deductions for higher-education costs.
7. If my modified adjusted gross income (MAGI) is above the limit, do I qualify for any tax credit?
Possibly. It depends on your income. Partial credits of less than $7,500 are available for some taxpayers whose MAGI exceeds the phaseout limits. The credit becomes totally unavailable for individual taxpayers with a modified adjusted gross income of more than $95,000 and for married taxpayers filing joint returns with an AGI of more than $170,000.
8. Can you give me an example of how the partial tax credit is determined?
Just as an example, assume that a married couple has a modified adjusted gross income of $160,000. The applicable phaseout to qualify for the tax credit is $150,000, and the couple is $10,000 over this amount. Dividing $10,000 by $20,000 yields 0.5. When you subtract 0.5 from 1.0, the result is 0.5. To determine the amount of the partial first-time home buyer tax credit that is available to this couple, multiply $7,500 by 0.5. The result is $3,750.
Here's another example: assume that an individual home buyer has a modified adjusted gross income of $88,000. The buyer's income exceeds $75,000 by $13,000. Dividing $13,000 by $20,000 yields 0.65. When you subtract 0.65 from 1.0, the result is 0.35. Multiplying $7,500 by 0.35 shows that the buyer is eligible for a partial tax credit of $2,625.
Please remember that these examples are intended to provide a general idea of how the tax credit might be applied in different circumstances. You should always consult your tax advisor for information relating to your specific circumstances.
9. Does the credit amount differ based on tax filing status?
No. The credit is in general equal to $7,500 for a qualified home purchase, whether the home buyer files taxes as a single or married taxpayer. However, if a household files their taxes as "married filing separately" (in effect, filing two returns), then the credit of $7,500 is claimed as a $3,750 credit on each of the two returns.
10. Are there any circumstances for which buyers whose incomes are at or below the $75,000 limit for singles or the $150,000 limit for married taxpayers might not be able to claim the full $7,500 tax credit?
In general, the tax credit is equal to 10% of the qualified home purchase price, but the credit amount is capped or limited at $7,500. For most first-time home buyers, this means the credit will equal $7,500. For home buyers purchasing a home priced less than $75,000, the credit will equal 10% of the purchase price.
1. I heard that the tax credit is refundable. What does that mean?
The fact that the credit is refundable means that the home buyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset. Typically this involves the government sending the taxpayer a check for a portion or even all of the amount of the refundable tax credit.
For example, if a qualified home buyer expected, notwithstanding the tax credit, federal income tax liability of $5,000 and had tax withholding of $4,000 for the year, then without the tax credit the taxpayer would owe the IRS $1,000 on April 15th. Suppose now that taxpayer qualified for the $7,500 home buyer tax credit. As a result, the taxpayer would receive a check for $6,500 ($7,500 minus the $1,000 owed).
12. What is the difference between a tax credit and a tax deduction?
A tax credit is a dollar-for-dollar reduction in what the taxpayer owes. That means that a taxpayer who owes $7,500 in income taxes and who receives a $7,500 tax credit would owe nothing to the IRS.
A tax deduction is subtracted from the amount of income that is taxed. Using the same example, assume the taxpayer is in the 15 percent tax bracket and owes $7,500 in income taxes. If the taxpayer receives a $7,500 deduction, the taxpayer's tax liability would be reduced by $1,125 (15 percent of $7,500), or lowered from $7,500 to $6,375.
13. Can I claim the tax credit if I finance the purchase of my home under a mortgage revenue bond (MRB) program?
No. The tax credit cannot be combined with the MRB home buyer program.
14. I live in the District of Columbia. Can I claim both the DC first-time home buyer credit and this new credit?
No. You can claim only one.
15. I am not a U.S. citizen. Can I claim the tax credit?
Maybe. Anyone who is not a nonresident alien (as defined by the IRS), who has not owned a principal residence in the previous three years and who meets the income limits test may claim the tax credit for a qualified home purchase. The IRS provides a definition of "nonresident alien" in IRS Publication 519.
16. Does the credit have to be paid back to the government? If so, what are the payback provisions?
Yes, the tax credit must be repaid. Home buyers will be required to repay the credit to the government, without interest, over 15 years or when they sell the house, if there is sufficient capital gain from the sale. For example, a home buyer claiming a $7,500 credit would repay the credit at $500 per year. The home owner does not have to begin making repayments on the credit until two years after the credit is claimed. So if the tax credit is claimed on the 2008 tax return, a $500 payment is not due until the 2010 tax return is filed. If the home owner sold the home, then the remaining credit amount would be due from the profit on the home sale. If there was insufficient profit, then the remaining credit payback would be forgiven.
17. Why must the money be repaid?
Congress's intent was to provide as large a financial resource as possible for home buyers in the year that they purchase a home. In addition to helping first-time home buyers, this will maximize the stimulus for the housing market and the economy, will help stabilize home prices, and will increase home sales. The repayment requirement reduces the effect on the Federal Treasury and assumes that home buyers will benefit from stabilized and, eventually, increasing future housing prices.
18. Because the money must be repaid, isn't the first-time home buyer program really a zero-interest loan rather than a traditional tax credit?
Yes. Because the tax credit must be repaid, it operates like a zero-interest loan. Assuming an interest rate of 7%, that means the home owner saves up to $4,200 in interest payments over the 15-year repayment period. Compared to $7,500 financed through a 30-year mortgage with a 7% interest rate, the home buyer tax credit saves home buyers over $8,100 in interest payments. The program is called a tax credit because it operates through the tax code and is administered by the IRS. Also like a tax credit, it provides a reduction in tax liability in the year it is claimed.
19. If I'm qualified for the tax credit and buy a home in 2009, can I apply the tax credit against my 2008 tax return?
Yes. The law allows taxpayers to choose ("elect") to treat qualified home purchases in 2009 as if the purchase occurred on December 31, 2008. This means that the 2008 income limit (MAGI) applies and the election accelerates when the credit can be claimed (tax filing for 2008 returns instead of for 2009 returns). A benefit of this election is that a home buyer in 2009 will know their 2008 MAGI with certainty, thereby helping the buyer know whether the income limit will reduce their credit amount.
20. For a home purchase in 2009, can I choose whether to treat the purchase as occurring in 2008 or 2009, depending on in which year my credit amount is the largest?
Yes. If the applicable income phaseout would reduce your home buyer tax credit amount in 2009 and a larger credit would be available using the 2008 MAGI amounts, then you can choose the year that yields the largest credit amount.
Is there any way for a home buyer to access the money allocable to the credit sooner than waiting to file their 2008 tax return?
Yes. Prospective home buyers who believe they qualify for the tax credit are permitted to reduce their income tax withholding. Reducing tax withholding (up to the amount of the credit) will enable the future home buyer to accumulate cash by raising his/her take home pay. This money can then be applied to the downpayment. Buyers should adjust their withholding amount on their W-4 via their employer or through their quarterly estimated tax payment. IRS Publication 919 contains rules and guidelines for income tax withholding. Prospective home buyers should note that if income tax withholding is reduced and the tax credit qualified purchase does not occur, then the individual would be liable for repayment to the IRS of income tax and possible interest charges and penalties.
About the author:
Cheryl Bowers is a Chicagoland Area Residential Real Estate Expert, who can assist you with the purchase and/or sale of real estate in Plainfield, Naperville, Aurora Illinois or any place in the country. Cheryl has created a team of professionals throughout the Chicago suburbs to ensure that you enjoy a smooth transition to your new area. Please visit www.cherylbowers.com for your real estate needs. Please give me a call if you have questions about the Plainfield, Naperville, and Aurora real estate market.
Cheryl Bowers, REALTOR® (630) 712-1921
(Copyright © 2008 By Cheryl Bowers, Realtor. All Rights Reserved.)
Plainfield IL, Naperville Illinois Real Estate - How to Guard Against Identity Theft
How to Guard Against Identity Theft
About the author:
Cheryl Bowers is a Chicagoland Area Residential Real Estate Expert, who can assist you with the purchase and/or sale of real estate in Plainfield, Naperville, Aurora Illinois or any place in the country. Cheryl has created a team of professionals throughout the Chicago suburbs to ensure that you enjoy a smooth transition to your new area. Please visit www.cherylbowers.com for your real estate needs. Please give me a call if you have questions about the Plainfield, Naperville, and Aurora real estate market.
Cheryl Bowers, REALTOR® (630) 712-1921
(Copyright © 2008 By Cheryl Bowers, Realtor. All Rights Reserved.)
Plainfield IL, Naperville Illinois Real Estate - 10 Things to Expect Going Through a Short Sale
10 Things to Expect Going Through a Short Sale
If you have any questions, please don't hesitate to contact me.
About the author:
Cheryl Bowers is a Chicagoland Area Residential Real Estate Expert, who can assist you with the purchase and/or sale of real estate in Plainfield, Naperville, Aurora Illinois or any place in the country. Cheryl has created a team of professionals throughout the Chicago suburbs to ensure that you enjoy a smooth transition to your new area. Please visit www.cherylbowers.com for your real estate needs. Please give me a call if you have questions about the Plainfield, Naperville, and Aurora real estate market.
Cheryl Bowers, REALTOR® (630) 712-1921
(Copyright © 2008 By Cheryl Bowers, Realtor. All Rights Reserved.)
Plainfield IL, Naperville Illinois Real Estate - Down Payment Assistance
For first-time buyers, often the first thought that comes to mind is, "I need a down payment." This is often followed by the question, "Now, where do I get that down payment?"
Depending upon the loan type, a home mortgage typically requires 3 to 5 percent down. If you have the money, then you're set. But what if you don't? What if you're renting? You can afford a mortgage within your means, but coming up with the down payment money needed to begin the transaction can be challenging. So, where can you turn?
One of the most overlooked sources of down payment funds is likely right under your nose-in the form of government bonds and local grant programs.
These programs either provide outright monetary grants for down payment or money to buyers in the form of a forgivable loan. In essence, the government will help you buy your home and you typically only have to pay back the money if and when you sell that same property.
In the past it was challenging to find these special programs, but now all you need is your agent, a computer, an Internet connection, and a search portal such as Google or Yahoo. Enter the search terms "down payment assistance (followed by your city, state or province)" and see what pops up! It might just be the answer to helping you buy your first home.
About the author:
Cheryl Bowers is a Chicagoland Area Residential Real Estate Expert, who can assist you with the purchase and/or sale of real estate in Plainfield, Naperville, Aurora Illinois or any place in the country. Cheryl has created a team of professionals throughout the Chicago suburbs to ensure that you enjoy a smooth transition to your new area. Please visit www.cherylbowers.com for your real estate needs. Please give me a call if you have questions about the Plainfield, Naperville, and Aurora real estate market.
Cheryl Bowers, REALTOR® (630) 712-1921
(Copyright © 2008 By Cheryl Bowers, Realtor. All Rights Reserved.)
Do I Qualify for a Short Sale on my Naperville or Plainfield Home?
Do I qualify for a Short Sale? Do You....
Are You Having Trouble Making The Payments? Are You....
Foreclosure Sale Date Approaching?
•· Are you behind on your payments?
•· Do you owe more than your home is worth?
•· Have you lost your job, fell ill, or lost a loved one?
•· Did your "ARM" adjust & you can't keep up?
•· Do you want to just walk away and not owe a dime?
Many Luxury Homes are also facing foreclosure. If you have a Luxury home in Plainfield, Naperville IL., or the West Chicago suburban area Yes, you can do a Short Sale on Luxury Homes. Call me and I can help!
About the author:
Cheryl Bowers is a Naperville, Plainfield Area Residential Real Estate Expert, who can assist you with the purchase and/or sale of real estate in Naperville IL., Plainfield IL., or any place in the country. Cheryl has created a team of professionals throughout the Plainfield, Naperville IL. area and the country to ensure that you enjoy a smooth transition to your new area. Please visit www.CherylBowers.com for your real estate needs. Please give me a call if you have questions about the Naperville, Plainfield IL. Area real estate market.
Cheryl Bowers, REALTOR® 630-712-1921
(Copyright © 2008 By Cheryl Bowers, All Rights Reserved.)
Plainfield Illinois, Naperville, IL Real Estate, - Short Sales - What's Needed?
When you go through the short sale process your lender will require certain documentation. Remember, the lender does not want to take the home back through foreclosure. That is a last resort for both the homeowner and the lender. The lender would rather accept a short sale as long as the borrower can show an inability to pay the mortgage.
Each lender has their list of required documentation. Therefore, the first step is to give your Realtor signed authorization to speak with the lender about your account.
Your Realtor will then request a "short sale package" from the lender. Most lenders require the following documentation.
Make sure that when you submit the package it is COMPLETE. Some times it may be better to wait a day and ensure that it's complete than to submit an incomplete package. Remember the Loss Mitigator is deal with possibly hundreds of files at a time.
Lastly Note: With a short sale your Realtor should negotiate for the lender to waive their right to file a deficiency judgment. **IMPORTANT**
Cheryl Bowers is a Naperville, Plainfield Area Residential Real Estate Expert, who can assist you with the purchase and/or sale of real estate in Naperville IL., Plainfield IL., or any place in the country. Cheryl has created a team of professionals throughout the Plainfield, Naperville IL. area and the country to ensure that you enjoy a smooth transition to your new area. Please visit www.CherylBowers.com for your real estate needs. Please give me a call if you have questions about the Naperville, Plainfield IL. Area real estate market.
Cheryl Bowers, REALTOR® 630-712-1921
(Copyright © 2008 By Cheryl Bowers, All Rights Reserved.)
Plainfield IL, Naperville Illinois Real Estate - Rental Homes
Rental Homes
Did you know that I can assist you in finding a rental home? It's true! Let me be your guide in finding your next rental property. Whether it's a condo, townhome, or single family residence I can help.
Also, did you know that the landord takes care of my fee. It's true! What have you got to lose?
Contact me today.
About the author:
Cheryl Bowers is a Chicagoland Area Residential Real Estate Expert, who can assist you with the purchase and/or sale of real estate in Plainfield, Naperville, Aurora Illinois or any place in the country. Cheryl has created a team of professionals throughout the Chicago suburbs to ensure that you enjoy a smooth transition to your new area. Please visit www.cherylbowers.com for your real estate needs. Please give me a call if you have questions about the Plainfield, Naperville, and Aurora real estate market.
Cheryl Bowers, REALTOR® (630) 712-1921
(Copyright © 2008 By Cheryl Bowers, Realtor. All Rights Reserved.)
Naperville IL, Plainfield Illinois Real Estate - Should you buy a home in today's market?
Should You Buy a Home in Today's Market?
Before we start, let us give you one reason to not buy a new home right now.
How long do you intend to live there?
A rule of thumb is that it rarely makes sense to buy if you expect to move within two years. That's because when you do sell, there are costs associated with selling. We're not just talking about sales commissions to the buying and selling real estate brokers. Most owners rely on home appreciation to pay those costs and to provide the down payment and closing costs when they buy their next home. So buying a home when you expect to move before too long is a risk, especially in an uncertain market.
However, most buyers live in their new home an average of seven years or more. If that fits you, it almost always makes sense to buy rather than rent, in practically any market.
Why? First, if you are thinking about delaying a purchase because you want to "time the market" to get the very best deal, that is almost impossible to do with precision. Even if you are in an area with declining market prices, the most knowledgeable experts cannot reliably anticipate the "bottom" of a real estate market. Afterwards, they can look back and say, "The market began to turn in 1997," like it did in some areas of California that had a tough market in the nineties. Before the turn, though, no one knows.
Second, if you aren't an owner, you're a renter. Renting is just throwing money away. You don't get to reduce your income taxes by itemizing deductions like property taxes and mortgage interest.
As a renter, you are limited on what changes you can make to your living quarters. As an owner, you can paint your living room chartreuse if you want or put in an avocado green carpet. You can change light fixtures, garden and landscape. You can do whatever you want that makes your home a comfortable place for you and your family. It's your home, not a temporary place to sleep and eat until you do buy a home.
Third, interest rates are very low right now. If you wait, interest rates could be higher. That means your monthly payment could be higher, too. No one can predict rates that far in the future, of course, but rates are very low right now.
Plus, the easiest way to accumulate wealth is through home ownership. Three out of four people have more equity in their home than assets in retirement plans, stocks, mutual funds, and savings. Though no one can guarantee your property will appreciate, over time it generally does. Over the long term, you can generally count on it. In the last five years, the median price of homes all across America has increased in value approximately 10% per year. Usually, it's not quite that high.
Admittedly, there are some areas that had more rapid appreciation in recent years. Those markets may suffer from lower price-growth than the rest of the nation or region over the next couple of years.
How do you minimize the possibility of lower appreciation for your home?
Determine your price range. Then choose a neighborhood where your target price is in the lower tier of prices in that neighborhood. That way, your home has less vulnerability on the down side and the higher-priced homes will help pull you up during hot markets.
Also, try to steer away from homes on busy streets or homes that back to busy streets. Buy a house as close to the center of the tract as possible. Don't buy houses across the street from a park or a school. Try to buy in a homogeneous area, where all the homes are similar to one another. For example, if you are buying a single family home, you do not want to buy next to an apartment or condominium complex.
Finally, talk to a real estate agent and ask for advice. Ask them what the market is like in your area.
Best of all, there are LOTS of sellers out there right now. Inventory is high. If you make an offer, ask for incentives to buy that particular home.
If you are putting ten percent down or more, you can ask for up to six percent of the purchase price in incentives. These incentives cannot be rebates of cash or help with down payment, but you can ask the seller to pay your closing costs. You can also ask the seller to pay for a temporary interest rate "buydown" that lowers your payment over the first one to three years and still gets you the security of a fixed rate mortgage -- and fixed rates are very low right now.
If you're putting down five percent or less, you can still ask for incentives. The amount you can ask for is limited to three percent of the purchase price. The reason there are limits is because you are going to finance the purchase with a mortgage and lenders have guidelines on how much sellers can provide in incentives. Those guidelines help them limit loan fraud.
Contact me for free home buying consultation today!
About the author:
Cheryl Bowers is a Chicagoland Area Residential Real Estate Expert, who can assist you with the purchase and/or sale of real estate in Plainfield, Naperville, Aurora Illinois or any place in the country. Cheryl has created a team of professionals throughout the Chicago suburbs to ensure that you enjoy a smooth transition to your new area. Please visit www.cherylbowers.com for your real estate needs. Please give me a call if you have questions about the Plainfield, Naperville, and Aurora real estate market.
Cheryl Bowers, REALTOR® (630) 712-1921
(Copyright © 2008 By Cheryl Bowers, Realtor. All Rights Reserved.)
How To Stop ID Theft - Naperville, Plainfield IL. Real Estate
Consumers are proving they can turn back time on identity theft by following a prescribed program of diligent document protection and criminal deterrence.
A well-measured program of preventive steps can protect your identity from theft.
ID theft-related fraud fell by 12 percent in 2007 and 300,000 fewer adults were victims, according to the latest from Javelin Strategy & Research, the longest-running ID theft study in the nation.
At the top of the list of reasons for the decline is "greater consumer vigilance and awareness," according to the report.
When someone steals your identity, you don't wander around aimlessly like some John or Jane Doe. Someone pilfers enough of your personal identifying information --name, address, Social Security Number, drivers license, credit and financial account numbers and the like -- then masquerades as you to make purchases, withdraw cash or otherwise undermine your financial assets and your name.
ID theft can cost you time and money (averaging $691, according to the report) to correct the misdeed and it can ruin your credit enough to prevent you from making major purchases including buying a home.
Companies that manage personal information have improved their ID theft protection measures, but consumers who protect their own personal information is the first line of defense.
Here's what Javelin suggests.
? Move your financial transactions online by turning off paper invoices, statements and checks, including paychecks, and replacing them with electronic versions where offered by employers, banks, utilities or merchants. Avoid mailing checks to pay bills or deposit funds in your banking account. Instead, pay bills online and use remote deposit check imaging services on online banking sites.
This effort rubs out the paper trail. Crooks are more likely to steal information on paper, from personal belongings and through telephone calls, rather than online.
? Monitor your accounts regularly online at bank and credit card websites. Americans who monitor their accounts online are most likely to uncover suspicious or unauthorized activity early.
? Likewise, review your credit information frequently. You can do so three times a year for free at the federally-sanctioned AnnualCreditReport.com by getting one report, from each of the three major credit reporting agencies -- Equifax, Experian and Transunion -- in turn, every four months.
? Reduce unnecessary access to your personal information wherever possible. For example, don't carry Social Security cards, unused credit cards or checks, and don't leave sensitive documents out in the open.
? Never provide sensitive financial information over the phone or Internet, including Social Security numbers, passwords, PINs or account numbers, unless you placed the call directly to a verified and trusted location, such as the number on back of a credit card or statement.
? Add your name to the federal Do Not Call registry and direct marketing opt-out lists to reduce solicitations that could be bogus.
Even as overall ID theft has fallen, "vishing," criminals using telecommunications, voice over Internet protocol (VoIP) and like methods, is on the rise. That's because, as more consumers shift more transactions to secure online services, thieves are becoming more creative on the telephone claiming to represent non-profit and charitable operations.
In the same vein, wireless phone accounts have become the most frequent types of new accounts opened fraudulently by criminals using stolen data. The trend exceeds that of fraudulent new credit cards, loans, checking or savings accounts.
? Install and regularly update firewall, browser, anti-spyware, and anti-virus security software on your personal computer, and keep operating systems updated. Updates typically come with spyware, virus and other protections.
? Consider placing a credit freeze on your credit report or your child's credit report if you know you won't be using credit for some time. Child ID theft is on the rise because thieves know you and your kid aren't likely to check the child's credit report for some time due to a lack of credit use. Check your state's "credit freeze" law. The cost may be nominal or free. The three credit reporting agencies offer the service for a fee.
? If you are an ID theft victim, report it to the police, affected accounts, and call any one of the three credit bureaus to have a fraud alert placed on your account to prevent future infractions as you sort out the mess. Contact one bureau to place a fraud alert on your credit report and that company is required to notify the other two so that they too can place an alert on their versions of your report.
About the author: Cheryl Bowers is a Naperville, Plainfield Area Residential Real Estate Expert, who can assist you with the purchase and/or sale of real estate in Naperville IL., Plainfield IL., or any place in the country. Cheryl has created a team of professionals throughout the Plainfield, Naperville IL. area and the country to ensure that you enjoy a smooth transition to your new area. Please visit www.CherylBowers.com for your real estate needs. Please give me a call if you have questions about the Naperville, Plainfield IL. Area real estate market. Cheryl Bowers, REALTOR® 630-712-1921 (Copyright © 2008 By Cheryl Bowers, All Rights Reserved.)
Senate Takes On Mortgage Walk-Away - Plainfield, Naperville IL. Real Estate
Recently came across this information thought some of you might find it interesting.
The Senate Banking Committee has just passed the Federal Housing Finance Regulatory Reform Act of 2008 by an overwhelming and bipartisan vote of 19-2.
Buried in the proposed legislation is something new and revolutionary, an effort to stop mortgage walk-aways.
Walk-aways arise when a borrower can no longer make monthly mortgage payments or sell the property. Rather than wait for foreclosure, the borrower simply sends the keys back to the lender. This is not a minor matter. Fitch Ratings reports that "the apparent willingness of borrowers to 'walk away' from mortgage debt has contributed to extraordinarily high levels of early default, which is particularly noticeable in the 2007 vintage mortgages."
Unfortunately, sending back the keys is not the same thing as giving up title. The lender must get the public records changed, a process made both difficult and expensive when a borrower cannot be found.
Worse, while property ownership is in limbo the home can be damaged by weather, vandals and squatters.
The Senate legislation addresses the walk away issue by saying that before borrowers can get FHA financing they must certify that they have not intentionally defaulted on any debt, not just their current mortgage. Lying about this issue can be considered perjury, and perjury can result in a jail sentence.
No less important, if a homeowner has walked away from an FHA loan, then the borrower would have to repay the government for any loss on the property -- potentially tens of thousands of dollars. In the same way that we should hold lenders to certain standards, borrowers also have an obligation to meet certain requirements. Sending back the keys -- creating so-called "jingle mail" -- is not fair and it's not right. The Senate committee has the correct idea: Walking away from a mortgage should not be a free pass to new financing, especially financing insured by the federal government.
About the author: Cheryl Bowers is a Naperville, Plainfield Area Residential Real Estate Expert, who can assist you with the purchase and/or sale of real estate in Naperville IL., Plainfield IL., or any place in the country. Cheryl has created a team of professionals throughout the Plainfield, Naperville IL. area and the country to ensure that you enjoy a smooth transition to your new area. Please visit www.CherylBowers.com for your real estate needs. Please give me a call if you have questions about the Naperville, Plainfield IL. Area real estate market. Cheryl Bowers, REALTOR® 630-712-1921 (Copyright © 2008 By Cheryl Bowers, All Rights Reserved.)Plainfield IL, Naperville Illinois Real Estate - Looking for Foreclosures? Sharing My Personal Source List!
Looking for Foreclosures? Sharing My Personal Source List!
National REO Banks:
Regional REO Banks:
Other REO Sources:
Now, If you see anthing of interest please give me a call so that I can get the details for you. Thanks
About the author:
Cheryl Bowers is a Chicagoland Area Residential Real Estate Expert, who can assist you with the purchase and/or sale of real estate in Plainfield, Naperville, Aurora Illinois or any place in the country. Cheryl has created a team of professionals throughout the Chicago suburbs to ensure that you enjoy a smooth transition to your new area. Please visit http://www.cherylbowers.com/ for your real estate needs. Please give me a call if you have questions about the Plainfield, Naperville, and Aurora real estate market.
Cheryl Bowers, REALTOR® (630) 712-1921
(Copyright © 2008 By Cheryl Bowers, Realtor. All Rights Reserved.)
Plainfield IL, Naperville Illinois Real Estate - VA Jumbo Loan
For years, the Veterans Administration has allowed "Jumbo" VA loans; it's just that hardly anyone knew about them. The current VA loan limit with zero down, is $417,000, matching the conforming loan limits set by Fannie Mae and Freddie Mac. But the VA does make allowances for VA loans above that amount ... way above. Say around $700,000.
Current Jumbo fixed rates are anywhere from 1.00 percent to 1.50 percent higher than conforming rates. That's a lot, and has many Jumbo buyers in a quandary. A 30 year fixed conforming rate might be 6.00 percent while a similar Jumbo rate could be 7.50 percent. That spread used to not be so vast. Prior to the current mortgage mess, Jumbo rates were typically about .25 to .5 percent higher than a conforming loan. But not so with a VA Jumbo loan.
VA Jumbo rates are near conforming rates, about .25 percent higher. And loans can be as high as $700,000. So how does this work?
First, if you're a qualified Veteran or Reservist, there simply is no better home loan out there with no money down. Period. Even when every lender on the planet was shouting "No Money Down!" for their home loans it couldn't hold a candle to a VA loan when comparing rates and closing costs. As long as the VA loan didn't exceed $417,000 ($625,000 for Alaska and Hawaii).
But a little "quirk" in VA lending allows for VA loans above that $417,000 as long as the veteran comes up with some down payment -- as with any Jumbo mortgage.
To figure out how much down payment a veteran will need, simply multiply the amount of the sales price over $417,000 and take 25 percent of that. For instance, a home sells for $650,000. Now subtract the maximum "zero down" VA loan amount of $417,000 and you get $233,000. 25 percent of $233,000 is $58,250. That's the down payment needed from the veteran.
That works out to about 9 percent down payment on a $650,000 home! As on all VA loans, there is a Funding Fee of about 2.2 percent of the loan amount but that can be rolled into the loan and not paid out-of-pocket. In this example, the final loan amount would be about $604,750.
With a conventional Jumbo loan, you'd need 20 percent down and pay a higher rate, say 7.50 percent compared to 6.25 percent.
Not all lenders will offer this program, so you'll need to do a little homework and even those that do may have their own VA Jumbo limits. But if you're in the Jumbo market and are VA eligible...give this program a hard look.
About the author:
Cheryl Bowers is a Chicagoland Area Residential Real Estate Expert, who can assist you with the purchase and/or sale of real estate in Plainfield, Naperville, Aurora Illinois or any place in the country. Cheryl has created a team of professionals throughout the Chicago suburbs to ensure that you enjoy a smooth transition to your new area. Please visit http://www.cherylbowers.com/ for your real estate needs. Please give me a call if you have questions about the Plainfield, Naperville, and Aurora real estate market.
Cheryl Bowers, REALTOR® (630) 712-1921
(Copyright © 2008 By Cheryl Bowers, Realtor. All Rights Reserved.)
