Foreclosure filings in seven Chicago-area counties swelled during June and the second quarter, keeping pressure on a local housing market trying hard to find a bottom.
Another 6,952 homes started the foreclosure process in Cook, DuPage, Kane, Kendall, Lake, McHenry and Will counties, RealtyTrac data showed. That's a 27 percent increase from June 2011 when initial filings of foreclosure in the seven counties totaled 5,485. The number declined from May 2012, when 7,595 homes entered foreclosure.
For the second quarter as a whole, 18,927 homes entered foreclosure in the seven counties. That compares with 14,704 homes in the first quarter and 16,676 properties in 2011's second quarter.
Meanwhile, the number of homes repossessed by banks, which more directly affects the housing market, totaled 8,941 in the second quarter, after 10,314 were repossessed in the first quarter. In the three months ended in June 2011, 5,861 homes were repossessed.
An increase in activity was both feared and expected, following a year-long slowdown in foreclosures because of various state and federal investigations into mortgage-servicing practices that became generally known as the robo-signing scandal.
Those investigations culminated in a $25 billion settlement announced in April with the five largest mortgage servicers, at which time most housing experts said they expected servicers to start moving foreclosure actions through a clogged pipeline.
"Lenders and servicers are slowly but surely catching up with the backlog of delinquent loans that under normal circumstances would have started the foreclosure process last year," said Brandon Moore, RealtyTrac's CEO.
"The increase in foreclosure starts in the first half of the year will likely translate into more short sales and bank repossessions in the second half of the year and into next year."
For the state as a whole during the first half of the year, foreclosure activity was 22 percent higher than a year, making Illinois one of the 20 states to post an increase from the first six months of 2011.
That heightened level of activity, and the downward pressure it is putting on the housing market, is one reason why Zillow earlier this week named the Chicago area the best market in the nation for homebuyers to find a bargain.
Foreclosures also continue to exert pressure on the number of Chicago-area homeowners who are underwater on their mortgages, meaning they owe more on their loans than the current value of the properties. On Thursday, housing data firm CoreLogic reported that 32.7 percent of all residential properties with a mortgage in the Chicago area were underwater in the first quarter, up from 30.4 percent in the fourth quarter.
Last month, real estate agents cheered May's $100 increase in the median price of a home sold in the Chicago area, but they and local housing economists want to see several months of improvement before they conclude that a recovery is underway.
Nationally, the RealtyTrac report noted that while bank repossessions decreased during the second quarter, 311,010 properties began the foreclosure process, a 9 percent increase from a year ago. It was the first time since 2009's fourth quarter that foreclosure starts recorded a year-over-year gain.
Sunday, December 2, 2012
New and improved website!
Bradford Miller Law, PC has revised its website to include even more information on short sales, real estate transactions, landlord-tenant disputes, building code violations, and estate planning. Visit the new site at www.bradfordmillerlaw.com!
Posted by Bradford Miller Law, PC, 134 N. LaSalle, Suite 1040, Chicago, IL 60602. Bradford Miller Law, PC offers free legal representation for homeowners going through a short sale. For a free short sale consultation, call 312-238-9298.
Monday, November 19, 2012
Chicago-area home sales have best October in 6 years
Tribune staff reporter
The Chicago area's housing market last month regained the momentum it lost in September, resulting in more homes being sold than in any October since 2006.
Sales of existing single-family homes and condominiums in the nine-county Chicago area totaled 8,326 properties in October, according to figures released Monday by the Illinois Association of Realtors. While below some of the monthly sales totals recorded earlier in the year, the volume was an increase of 11.3 percent over September and 44.1 percent higher than the 5,776 homes sold in October 2011.
Within the city of Chicago, 2,009 homes were sold in October, an improvement of 8.8 percent over September and up 53.1 percent from October 2011. Condos accounted for 60 percent of the city's sales volume.
The strong sales continue to remove excess inventory for the market, which is necessary before price appreciation can truly begin. The number of homes listed for sale is at its lowest point in five years, according to Midwest Real Estate Data LLC, the local multiple listing provider.
Meanwhile, the number of pending home sales in the Chicago area, meaning properties that are under contract but the sales have not yet closed, totaled 10,364 in October, the highest it's ever been except for April 2010 when home sales were affected by federal homebuyer tax credit programs.
For the Chicago area as a whole, the median price of a home was $153,000, the lowest it's been since March but still ahead 2.1 percent from October 2011's $149,900. Among local counties, DuPage County was one of those that saw double-digit, year-over-year monthly appreciation, rising 11.4 percent in October, to $195,000.
Within the city, the median price rose to $175,000, up 8 percent from a year ago but again, the lowest monthly price recorded since March. In the condo market, the median price fell 8.7 percent from September, to $210,000. However, that sum was a 13.5 percent increase from October 2011.
"There's a great deal of end-of-the year excitement," said Zeke Morris, president of the Chicago Association of Realtors. "Typically our numbers are down in the fourth quarter but we're beginning to catch up to other markets in Illinois."
Geoffrey J.D. Hewings, a University of Illinois economist, attributed the improved sales performance to a slowly improving economy, stronger consumer confidence and continued low mortgages rates.
The monthly average commitment rate for the benchmark 30-year, fixed-rate mortgage in the Chicago area was 3.36 percent in October, compared with 3.49 percent in September and 4.07 percent in October 2011, according to the Federal Home Loan Mortgage Corp. Last week, Freddie Mac said average mortgage rates hit a new all-time low in its weekly survey, of 3.34 percent for a 30-year, fixed rate mortgage.
Posted by Bradford Miller Law, PC
Bradford Miller Law, PC is a Chicago law firm that practices in the areas of Real Estate and Estate Planning. The firm is located at 134 N. LaSalle, Suite 1040, Chicago, IL 60602.
The Chicago area's housing market last month regained the momentum it lost in September, resulting in more homes being sold than in any October since 2006.
Sales of existing single-family homes and condominiums in the nine-county Chicago area totaled 8,326 properties in October, according to figures released Monday by the Illinois Association of Realtors. While below some of the monthly sales totals recorded earlier in the year, the volume was an increase of 11.3 percent over September and 44.1 percent higher than the 5,776 homes sold in October 2011.
Within the city of Chicago, 2,009 homes were sold in October, an improvement of 8.8 percent over September and up 53.1 percent from October 2011. Condos accounted for 60 percent of the city's sales volume.
The strong sales continue to remove excess inventory for the market, which is necessary before price appreciation can truly begin. The number of homes listed for sale is at its lowest point in five years, according to Midwest Real Estate Data LLC, the local multiple listing provider.
Meanwhile, the number of pending home sales in the Chicago area, meaning properties that are under contract but the sales have not yet closed, totaled 10,364 in October, the highest it's ever been except for April 2010 when home sales were affected by federal homebuyer tax credit programs.
For the Chicago area as a whole, the median price of a home was $153,000, the lowest it's been since March but still ahead 2.1 percent from October 2011's $149,900. Among local counties, DuPage County was one of those that saw double-digit, year-over-year monthly appreciation, rising 11.4 percent in October, to $195,000.
Within the city, the median price rose to $175,000, up 8 percent from a year ago but again, the lowest monthly price recorded since March. In the condo market, the median price fell 8.7 percent from September, to $210,000. However, that sum was a 13.5 percent increase from October 2011.
Last month, 43 percent of sales within the city were either foreclosures or short sales.
The median is the point at which half the homes are sold for more and half for less."There's a great deal of end-of-the year excitement," said Zeke Morris, president of the Chicago Association of Realtors. "Typically our numbers are down in the fourth quarter but we're beginning to catch up to other markets in Illinois."
Geoffrey J.D. Hewings, a University of Illinois economist, attributed the improved sales performance to a slowly improving economy, stronger consumer confidence and continued low mortgages rates.
The monthly average commitment rate for the benchmark 30-year, fixed-rate mortgage in the Chicago area was 3.36 percent in October, compared with 3.49 percent in September and 4.07 percent in October 2011, according to the Federal Home Loan Mortgage Corp. Last week, Freddie Mac said average mortgage rates hit a new all-time low in its weekly survey, of 3.34 percent for a 30-year, fixed rate mortgage.
Posted by Bradford Miller Law, PC
Bradford Miller Law, PC is a Chicago law firm that practices in the areas of Real Estate and Estate Planning. The firm is located at 134 N. LaSalle, Suite 1040, Chicago, IL 60602.
Thursday, July 12, 2012
New foreclosure filings swell 27% in Chicago area
Posted by Bradford Miller Law, P.C.
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Wednesday, July 11, 2012
Where is the housing market headed?
5 Projections of Where the Housing Market's Headed
Real estate markets across the country are inching their way to a slow recovery after bottoming out, according to several real estate economists who spoke at a forum hosted by the National Association of Real Estate Editors.
National Association of REALTORS®’ Chief Economist Lawrence Yun, Zillow Chief Economist Stan Humphries, and National Association of Home Builders Chief Economist David Crowe shared their views on the direction of the housing market during the forum.
"Last year was the worst year on record for [new] house sales, for 60 years of housing-sale info," Crowe said.
But things are picking up, the economists note, despite several challenges still threatening that recovery. Yun says that appraisal issues are holding back up to 20 percent of home sales and that lenders’ tightened mortgage underwriting standards are likely holding back another 15 to 20 percent of potential home deals.
Here are some of the economists’ forecasts:
1. New-home market: The NAHB predicts a 19 percent increase in single-family housing starts this year over last (from 434,000 last year to a projected 516,000 this year).
2. Single-family rental market: This could be the next housing market bubble, Humphries warns. He expects this sector to cool as rental rates continue to increase and as home ownership looks more attractive to the public again.
3. Distressed home sales: The percentage of distressed homes sales is projected to drop by 25 percent in 2012 and 15 percent in 2013, Yun says.
4. Home price appreciation: Yun says it’s possible some markets may see a 10 percent rise in home-price appreciation next year due to an increase in demand, or a 60 to 70 percent increase in housing starts. Yun argues it won’t be both, however, but rather one or the other. He notes it greatly depends on whether lawmakers reach an agreement once again on the looming debt-ceiling deadline.
5. Home owners’ negative equity: About a third of home owners are underwater, owing more on their mortgage than their home is currently worth. As such, the housing recovery will likely be “stair stepped,” Humphries says. He says home owners with negative equity will gradually begin to list their homes as they see prices inch up, but when they do, that may temporarily swell the housing supply and cause a brief pause to the recovery.
Source: “Economists: 2012 Marks the End of a Long Bottom,” Inman News (June 22, 2012)
Posted by Bradford Miller Law, P.C.
A Law Firm Dedicated To Real Estate
Law, Landlord Tenant Law, and Estate Planning
134 N. LaSalle, Suite 2250
Chicago, IL 60602
312-238-9298
Offering
free legal representation to homeowners seeking a short sale
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building code violations, short sale attorney Chicago. This is intended to be
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Tuesday, June 12, 2012
Home Prices Begin to Bounce Back
The Federal Housing Finance Agency reported that nationwide home prices posted their first gain in the first quarter since 2007. While the gain was modest at 0.6 percent, housing experts note it’s still another sign that the housing market is gaining momentum.
FHFA’s housing price index is calculated using home sales price information based off Freddie Mac and Fannie Mae-backed mortgages.
FHFA’s seasonally adjusted monthly index rose 1.8 percent in March over February, which is the largest monthly increase in at least 20 years. Year-over-year, home prices increased 2.7 percent, FHFA reports.
"Increased affordability and a somewhat smaller inventory of homes for sale are positively impacting house prices," says Andrew Leventis, FHFA’s principal economist.
Price increases were the highest in Hawaii with a 10.3 percent increase, and in Washington, D.C., which saw a 9.8 percent gain, according to FHFA.
Still, Number of Underwater Home Owners Remain High
Despite recent improvements in home prices, the percentage of underwater borrowers has shown little improvement in the last year. More than 30 percent of home owners in the first quarter remained underwater on their mortgage, owing more on their home than it’s currently worth, according to a new Zillow housing report.
A year ago, 32.4 percent of all borrowers had negative equity on their loan compared to 31.4 percent during the most recent quarter, Zillow reports.
Yet, Zillow notes that nine out of 10 underwater borrowers are current on their mortgage payments.
"[It's] important to note that negative equity remains only a paper loss for the vast majority of underwater home owners," says Stan Humphries, Zillow's chief economist. "As home values slowly increase and these home owners continue to pay down their principal, they will surface again."
The highest share of underwater home owners continues to be in Las Vegas, where 71 percent of home owners are underwater, followed by Phoenix (at 55.5 percent) and Atlanta (at 55.2 percent), according to the Zillow housing report.
Source: “U.S. Housing Prices Rise,” UPI (May 23, 2012); “Home Prices Rose Most in Two Decades in March, FHFA Says,” Bloomberg News (May 23, 2012) and “More than 30% of Mortgage Borrowers Still Underwater,” CNNMoney (May 24, 2012)
Posted by Bradford Miller Law, P.C.
A Law Firm Dedicated To Real Estate
Law, Landlord Tenant Law, and Estate Planning
134 N. LaSalle, Suite 2250
Chicago, IL 60602
312-238-9298
Offering
free legal representation to homeowners seeking a short sale
Key words: Chicago short sale
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building code violations, short sale attorney Chicago. This is intended to be
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Monday, May 28, 2012
Home Inspection myths and facts
‘Tis the season for home sales and with it comes the demand for home inspections – an indispensable tool that can help buyers make an informed decision about a property and aid them in negotiating purchase price.
Home inspections offer valuable information about the general condition of a home, outlining areas requiring minor and major repairs and pinpointing deficiencies in building structure. The complex task of assessing a home is more difficult because of the prevalence of myths attached to the process of home inspection. For the real facts on what you can expect here’s a few of the worst misconceptions, along with expert advice from Marvin Goldstein, President of theAmerican Society of Home Inspectors (ASHI):
MYTH: Everything I need to know will be included in the inspection report.
FACT: “This is one of the biggest misunderstandings,” says Goldstein, adding, “you pay good money for an inspection report, but that doesn’t mean you don’t need to go along.”
The report will give you excellent information and will point out weaknesses about smoke detectors, heating systems, etc. but a homeowner can also get more out of an inspection if they tag along. “Inspectors are usually generous in giving homeowners maintenance tips and advice in almost all the areas of a home, and by attending the inspection, it will clarify things in writing, eliminating future misunderstanding. It’s a real learning experience and a good way for a homeowner to get familiar with the property.”
MYTH: An appraisal is just as comprehensive as a home inspection; or, if I have a really good appraisal, it won’t be necessary to have a home inspection.
FACT: Home inspections and home appraisals are NOT the same. As ridiculous as it sounds, some homeowners end up assuming a comprehensive appraisal has covered all the bases. But Goldstein says, “ASHI’s general accountability office conducted a survey and found a vast majority of people – more than 20% - were under the impression they had a house inspection when, in fact, all they had was an appraisal.”
Sometimes they get this impression from real estate agents. Even if your real estate agent recommends a home inspection, Goldstein warns consumers to seek an independent assessment because of the conflict of interest. “Real estate agents, even buyer’s agents, are obligated to cater to the interests of the seller.”
MYTH: A home inspector should be able to tell me everything that can potentially go wrong with the home I’d like to purchase.
FACT: A home inspector is required to report the things that are not functioning properly, especially if they’re unsafe. They will also inform you when certain components and systems are at the end of their service life such as worn-out heating, plumbing or electrical systems.
They cannot predict with accuracy, however, when things will go wrong because they can only account for variables present at the time of inspection. For example, you may buy a home with a roof that’s seen better days. The home inspector reports there is no sign of water damage and in the first winter you experience major leaks from ice dams. It isn’t due to faulty inspection services even if the inspector agreed you could probably put off getting a new roof for a few more years. The inspector will only report wear and tear on the existing roof and provide you with recommendations for the lack of improper attic insulation - the cause of the formation of ice dams in the first place.
To put expectations in perspective, Goldstein reminds consumers to keep in mind, “A home inspector doesn’t have X-ray vision and can’t see through walls and floors. A home inspection is not an exhaustive engineering analysis, nor will your inspector take apart components for inspection. It’s a snapshot – a professional observation of existing conditions by someone with a trained eye.”
He also recommends reading the inspection contract, as some may not include inspection for pests such as termites, well/water conditions or septic tank failure. These may be optional extras not included as part of the standard contract. Controlling termites in Southern climates like Dallas can be difficult, so it is worth the extra cost to invest in these optional extras, especially if you live in a region where the houses are prone to these issues.
MYTH: All home inspectors are licensed and my inspector says he’s certified – so I’m safe.
FACT: Only 30 states require licensing, but even licensed inspectors will vary in their qualifications. Many inspectors receive training and certification through various programs, but it isn’t always a guarantee of competency. Goldstein is acutely aware of the discrepancies putting the consumer at risk. “Anybody can say their certified, but by who? Some inspectors get all their training online and never complete a field test or take a comprehensive examination.”
To set the standard of performance high, ASHI has varying levels of certification, with full certification achieved only after an inspector has been able to pass a proctored exam and completed a minimum of 250 inspections. Have a detailed discussion with any home inspector you want to hire and find out their qualifications including training and experience. Ask for an example of a complete home inspection report prior to cutting that check so you can see how comprehensive (or not) the report will be.
Courtesy of foxnews.com
The American Society of Home Inspectors (ASHI) is the largest and most respected professional association for home inspectors in North America, with more than 6,000 members and 80+ chapters. For more information and answers to frequently asked questions about home inspection or to locate an ASHI inspector in your area visit: http://www.ashi.org/customers/faq.asp.
Posted by Bradford Miller Law, P.C.
A Law Firm Dedicated To Real Estate Law, Landlord Tenant Law, and Estate Planning
134 N. LaSalle, Suite 2250
Chicago, IL 60602
312-238-9298
Offering free legal representation to homeowners seeking a short sale
Key words: Chicago short sale attorney, Chicago landlord tenant law attorney, Chicago estate planning attorney, Chicago real estate attorney, Chicago real estate lawyer, Chicago building code violations, short sale attorney Chicago. This is intended to be advertising. Please consult with an attorney before acting on any information given here.
Saturday, May 19, 2012
A good 1st quarter for 2012
Mild weather, low interest rates and declines in pricing all played a role in home sales surging statewide in the first quarter of 2012 compared to a year ago, according to the Illinois Association of REALTORS®. What's ahead? Statewide sales volume will be 8-18 percent higher in the second quarter of 2012, according to the University of Illinois forecast.
Posted by Bradford Miller Law, P.C.
A Law Firm Dedicated To Real Estate
Law, Landlord Tenant Law, and Estate Planning
134 N. LaSalle, Suite 2250
Chicago, IL 60602
312-238-9298
Offering
free legal representation to homeowners seeking a short sale
Key words: Chicago short sale
attorney, Chicago landlord tenant law attorney, Chicago estate planning
attorney, Chicago real estate attorney, Chicago real estate lawyer, Chicago
building code violations, short sale attorney Chicago. This is intended to be
advertising. Please consult with an attorney before acting on any
information given here.
Sunday, May 13, 2012
A good time to be a Buyer
The real estate market is thawing this spring. Following five years of dismal sales and falling prices, the housing market is starting to see a turnaround, according to housing surveys, agent reports, and economists.
Home buyers are returning to take advantage of record housing affordability while investors are buying up foreclosures in bulk at bargain prices.
"The biggest challenge that we've had over the past four years is fear — fear that the economy is collapsing, that property values are collapsing, that the world is coming to an end," Mark Prather, a broker at ERA Buy America Real Estate in La Palma, Calif., told the Associated Press. "The fear factor is all but gone."
The signs are already there: Home sales prices are starting to edge up, even in hard-hit housing areas like Phoenix and Miami. Also, banks are issuing more mortgages. JPMorgan Chase recently reported an uptick in loan applications recently by 33 percent, and the bank said that it issued 6 percent more mortgages from January through March than last year. Wells Fargo reported an 84 percent increase in loan applications and the issuing of 54 percent more mortgages in the last year.
Still, the housing market has some ways to go, with a surge of foreclosures expected to soon hit the market and the unemployment rate still high in many parts of the country.
"This gradual healing is encouraging, but we must tread carefully as the housing market is still far from a robust recovery," Michelle Meyer, an economist at Bank of America Merrill Lynch, told Reuters News.
Source: “US home-buying season finally signaling a recovery,” The Associated Press (April 15, 2012) and “Close to Bottoming, Home Prices May Rise in 2013,” Reuters (April 12, 2012)
Posted by Bradford Miller Law, P.C.
A Law Firm Dedicated To Real Estate
Law, Landlord Tenant Law, and Estate Planning
134 N. LaSalle, Suite 2250
Chicago, IL 60602
312-238-9298
Offering
free legal representation to homeowners seeking a short sale
Key words: Chicago short sale
attorney, Chicago landlord tenant law attorney, Chicago estate planning
attorney, Chicago real estate attorney, Chicago real estate lawyer, Chicago
building code violations, short sale attorney Chicago. This is intended to be
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Monday, May 7, 2012
95% of REOs Need Rehab, Analysts Say
Courtesy of DAILY REAL ESTATE NEWS
Investors are buying up foreclosures in bulk, viewing the potential returns from REOs-to-rentals as better than most other investments.
But experts caution investors to be careful that they don’t take on more than they can handle, and make sure they devote some attention — and budget — into the rehabilitation of many of the properties they buy.
Nearly 95 percent of distressed homes are in bad shape and unsuitable for renting out, Morgan Stanley analysts estimate.
"The importance of getting construction — or specifically, re-construction or rehabilitation — right cannot be overstated," according to a recent report sent to Morgan Stanley clients. "The quality and cost of rehabilitation can continue to benefit or haunt the asset far past the initial completion of work. For example, shoddy plumbing or other infrastructure work can result in significantly higher maintenance costs over time, and can also affect eventual exit pricing."
Morgan Stanley provided estimates to investors in the report, citing estimates of renovation work to cost about 25 percent of the purchase price.
Posted by Bradford Miller Law, P.C.
A Law Firm Dedicated To Real Estate
Law, Landlord Tenant Law, and Estate Planning
134 N. LaSalle, Suite 2250
Chicago, IL 60602
312-238-9298
Offering
free legal representation to homeowners seeking a short sale
Key words: Chicago short sale
attorney, Chicago landlord tenant law attorney, Chicago estate planning
attorney, Chicago real estate attorney, Chicago real estate lawyer, Chicago
building code violations, short sale attorney Chicago. This is intended to be
advertising. Please consult with an attorney before acting on any
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Saturday, April 28, 2012
March Illinois Home Sales Best in Four Years
Statewide home sales totaled 9,575, the best March performance since 2007, according to the latest Illinois Association of Realtors report. The statewide median price held steady at $130,000, marking the first time the median price hasn't decreased since June 2010.
Posted by Bradford Miller Law, P.C. Real Estate Law, Landlord Tenant Law, Estate Planning 134 N. LaSalle, Suite 2250 Chicago, IL 60602 312-238-9298 http://www.bradfordmillerlaw.com
Offering free legal representation to homeowners seeking a short sale
Key words: Chicago short sale attorney, Chicago landlord tenant law attorney, Chicago estate planning attorney, Chicago real estate attorney, Chicago real estate lawyer, Chicago building code violations, short sale attorney Chicago. This is intended to be advertising. Please consult with an attorney before acting on any information given here.
Posted by Bradford Miller Law, P.C. Real Estate Law, Landlord Tenant Law, Estate Planning 134 N. LaSalle, Suite 2250 Chicago, IL 60602 312-238-9298 http://www.bradfordmillerlaw.com
Offering free legal representation to homeowners seeking a short sale
Key words: Chicago short sale attorney, Chicago landlord tenant law attorney, Chicago estate planning attorney, Chicago real estate attorney, Chicago real estate lawyer, Chicago building code violations, short sale attorney Chicago. This is intended to be advertising. Please consult with an attorney before acting on any information given here.
Sunday, April 15, 2012
Consider doing a short sale
If you are a homeowner who can no longer afford your home and owe more than the home is worth, one option available to you is a short sale. My office handles short sales every day. In a short sale, all of the costs (legal fee, realtor commission, title/closing costs) are paid by the bank. Many of my clients receive $3,000 in assistance as well.
My office offers free legal representation to homeowners seeking a short sale. Contact Attorney Bradford Miller for a free 15-minute phone consultation.
My office offers free legal representation to homeowners seeking a short sale. Contact Attorney Bradford Miller for a free 15-minute phone consultation.
Posted by Bradford Miller Law, P.C.
Real Estate Law, Landlord Tenant Law, Estate Planning
134 N. LaSalle, Suite 2250
Chicago, IL 60602
312-238-9298
Offering free legal representation to homeowners seeking a short sale
Key words: Chicago short sale attorney, Chicago landlord tenant law attorney, Chicago estate planning attorney, Chicago real estate attorney, Chicago real estate lawyer, Chicago building code violations, short sale attorney Chicago. This is intended to be advertising. Please consult with an attorney before acting on any information given here.
Wednesday, April 4, 2012
Have home prices finally hit bottom?
Have home prices finally hit bottom?
“Prices are bottoming now,” according to a Bank of America Merrill Lynch forecast, released this week.
In the fall, the analysts had predicted home prices would drop by 8 percent from the second quarter of 2011 through the first quarter of 2013 — but now they’re revising that forecast, realizing the housing market is stabilizing faster than they originally thought.
The analysts now predict that prices will remain flat for the next two years, as the excess foreclosure inventory is absorbed. They then expect to see a pickup in home prices by 2014.
And in the long-term, they see a big rise in housing prices. From 2012 through 2020, analysts forecast a cumulative growth of 42 percent in home prices (at 4 percent on an annualized basis).
Source: “Home Prices ‘Bottoming Now,’ BofA Merrill Lynch Analysts Say,” HousingWire (March 22, 2012)
Posted by Bradford Miller Law, P.C.
Real Estate Law, Landlord Tenant Law, Estate Planning
134 N. LaSalle, Suite 2250
Chicago, IL 60602
312-238-9298
Offering free legal representation to homeowners seeking a short sale
Key words: Chicago short sale attorney, Chicago landlord tenant law attorney, Chicago estate planning attorney, Chicago real estate attorney, Chicago real estate lawyer, Chicago building code violations, short sale attorney Chicago. This is intended to be advertising. Please consult with an attorney before acting on any information given here.
Wednesday, March 28, 2012
How foreclosures affect buyers and sellers
Interesting article so I figured I would post it....
Courtesy of Marcie Geffner, bankrate.com
If anything is certain about the foreclosure crisis, it's that it isn't over. That fact has important implications, not only for people losing their homes, but also for those planning to sell or buy a home this year.
As of January, about 3 million properties were in foreclosure, headed that way or already owned by banks, according to CoreLogic, an information, analytics and business services company in Santa Ana, Calif.
Approximately 1.6 million of those homes were believed to be within the so-called shadow inventory, a supply of foreclosure properties not yet listed for sale. It's a major stumbling block to a housing recovery, says Mark Fleming, chief economist of CoreLogic.
"It puts downward pressure on home prices, which hurts home sales and building activity," Fleming said in a statement.
Given that prelude, here's what sellers and buyers can expect.
Price
Foreclosures and short sales have widened the gap between sellers' and buyers' perceptions of prices. Sellers "think their home is worth more than it really is" and buyers "think the prices are too high," says Louis Cammarosano, general manager at HomeGain, a real estate information website in Emeryville, Calif.
One cause of that gap is realty brokers' tendency to scrub foreclosures and short sales from comparable sales data used to set sellers' asking prices. While sellers might feel a moral justification for that approach, Cammarosano says it's "disingenuous" because the status of the seller's mortgage isn't important to buyers.
"(Just because) you happen to be paying your mortgage, that doesn't mean the buyer has to step into your shoes and pay your inflated price," he says.
Interest rates
Traditionally, mortgage rates have been something of a wild card for homebuyers. But that's not the case today because the Federal Reserve has announced its intention to keep rates low at least through late 2014. That's not a guarantee, but it has taken some of the urgency out of homebuying and put more buyers into a wait-and-see pattern.
"The perception that prices could go lower, a lot of foreclosures in the pipeline and (the expectation) that rates will remain low -- that's certainly keeping some people on the sidelines," Cammarosano says.
Location
Buyers might be reluctant to purchase a home in a neighborhood plagued by foreclosures and short sales. But Stephen Israel, president of Buyer's Edge Co., a real estate brokerage in Bethesda, Md., says buyers can take a clue from real estate investors who are looking at areas that have been hard hit, yet might be prime for a turnaround.
"Investors are interested in neighborhoods that were beat up by foreclosures and that have other redeeming features that they then believe will be the first to bounce back," he says.
Those redeeming features might include easy access to public transportation, well-regarded schools, attractive shopping centers and other positive infrastructure elements. Neighborhoods that have such amenities can be "really interesting pockets, where there could be some very good values," Israel says.
Condition
Foreclosure and short sale homes are often, though not always, in worse shape than other homes on the market. That's especially problematic for buyers if a home has been vacant a long time because neglect can result in problems in plumbing, heating, cooling, electrical and other systems.
"There is a big difference," Israel says, "between a property that has been vacant a few weeks and one that has been vacant a year or more."
A home that's in poor shape might not be a bad buy if the buyer understands the risks, he adds.
Sometimes, though, those risks can be difficult to assess if the term of vacancy isn't known or the water, sewer, electricity and gas have been shut off. The utilities not being in service is "an interesting part of this equation that people miss all the time," Israel says.
Buy or sell
The bottom line for buyers is that they need to "buy smart," to use Israel's term, researching neighborhoods and being aware of a home's actual condition beyond its cosmetic appearance.
The bottom line for sellers, Cammarosano says, is that they need to get serious about pricing, cleaning, decluttering, staging and improving the value and desirability of their home.
"That's getting real," he says. "And if that's not what you want, don't sell it."
Posted by Bradford Miller Law, P.C.
Real Estate Law, Landlord Tenant Law, Estate Planning
134 N. LaSalle, Suite 2250
Chicago, IL 60602
312-238-9298
Offering free legal representation to homeowners seeking a short sale
Key words: Chicago short sale attorney, Chicago landlord tenant law attorney, Chicago estate planning attorney, Chicago real estate attorney, Chicago real estate lawyer, Chicago building code violations, short sale attorney Chicago. This is intended to be advertising. Please consult with an attorney before acting on any information given here.
Saturday, March 24, 2012
Housing Affordability Index Hits Record High
Housing affordability conditions have reached the highest level since recordkeeping began in 1970, according to the National Association of Realtors®.
NAR’s Housing Affordability Index rose to a record high 206.1 in January, based on the relationship between median home price, median family income and average mortgage interest rate. The higher the index, the greater the household purchasing power.
An index of 100 is defined as the point where a median-income household has exactly enough income to qualify for the purchase of a median-priced existing single-family home, assuming a 20 percent downpayment and 25 percent of gross income devoted to mortgage principal and interest payments. For first-time buyers making small downpayments, the affordability levels are relatively lower.
NAR President Moe Veissi, broker-owner of Veissi & Associates Inc., in Miami, said this latest data underscores buyer opportunities in today’s market. “This is the first time the housing affordability index has broken the two hundred mark, meaning the typical family has roughly double the income needed to purchase a median-priced home,” he said. “For buyers who can qualify for a mortgage, now is a very good time to become a homeowner.”
NAR projects the affordability index for all of 2012 will be at an annual high, with little movement in mortgage interest rates or home prices during the year. “Housing inventory levels have declined to a point where conditions are becoming much more balanced in much of the country,” Veissi said. “If access to credit improves, we could see a much more meaningful increase in home sales and broader stabilization in home prices with modest gains in areas with stronger job growth.”
Courtesy of the National Association of Realtors
Posted by Bradford Miller Law, P.C.
Real Estate Law, Landlord Tenant Law, Estate Planning
134 N. LaSalle, Suite 2250
Chicago, IL 60602
312-238-9298
http://www.bradfordmillerlaw.com
Offering free legal representation to homeowners seeking a short sale
Key words: Chicago short sale attorney, Chicago landlord tenant law attorney, Chicago estate planning attorney, Chicago real estate attorney, Chicago real estate lawyer, Chicago building code violations, short sale attorney Chicago. This is intended to be advertising. Please consult with an attorney before acting on any information given here.
Real Estate Law, Landlord Tenant Law, Estate Planning
134 N. LaSalle, Suite 2250
Chicago, IL 60602
312-238-9298
http://www.bradfordmillerlaw.com
Offering free legal representation to homeowners seeking a short sale
Key words: Chicago short sale attorney, Chicago landlord tenant law attorney, Chicago estate planning attorney, Chicago real estate attorney, Chicago real estate lawyer, Chicago building code violations, short sale attorney Chicago. This is intended to be advertising. Please consult with an attorney before acting on any information given here.
Sunday, March 18, 2012
Five mistakes Buyers can make
1. Not shopping around for the best loanMortgage rates and lender fees can vary so in my opinion it is best to get at least three quotes from three separate lenders.
2. Simply dismissing FHA loans
Even though there is an upfront mortgage premium, FHA loans have several advantages:
A lower mortgage payment doesn't always represent savings. If a 15-year loan and a 30-year loan had the same mortgage rate, the 15-year loan would require a higher monthly payment than the 30-year loan but you'd pay A LOT less in total interest on the 15-year loan.
4. Only considering a 30 year fixed rate
If you know you will be in your home for over five years, then a 30 year fixed rate probably makes sense. If you are younger though and know you will be moving within the next five years, you should consider a five year adjustable-rate mortgage (ARM)--which will give you a fixed rate for a specified number of years and can often be a lower rate than a 30 year fixed rate.
5. Not hiring a real estate attorney
In the Chicago area, having a real estate attorney is normal - almost required. As a buyer, not having a real estate attorney can put you at a huge disadvantage. There are contract deadlines, title policies to review, closing paperwork to review, tax prorations to figure out, etc. Getting clean title and making sure the numbers are right is very important on any transaction. If you do not have a real estate attorney on your side - good luck trying to figure it all out. The relatively small fee ($500 at Bradford Miller Law) is well worth it.
Offering free legal representation to homeowners seeking a short sale
2. Simply dismissing FHA loans
Even though there is an upfront mortgage premium, FHA loans have several advantages:
- Required down payments range from 3.5% to 10%
- The loans are assumable when you sell your home.
- Minimum credit scores range from 500 to 580, and credit scores don't influence pricing
- Underwriting can be flexible
A lower mortgage payment doesn't always represent savings. If a 15-year loan and a 30-year loan had the same mortgage rate, the 15-year loan would require a higher monthly payment than the 30-year loan but you'd pay A LOT less in total interest on the 15-year loan.
4. Only considering a 30 year fixed rate
If you know you will be in your home for over five years, then a 30 year fixed rate probably makes sense. If you are younger though and know you will be moving within the next five years, you should consider a five year adjustable-rate mortgage (ARM)--which will give you a fixed rate for a specified number of years and can often be a lower rate than a 30 year fixed rate.
5. Not hiring a real estate attorney
In the Chicago area, having a real estate attorney is normal - almost required. As a buyer, not having a real estate attorney can put you at a huge disadvantage. There are contract deadlines, title policies to review, closing paperwork to review, tax prorations to figure out, etc. Getting clean title and making sure the numbers are right is very important on any transaction. If you do not have a real estate attorney on your side - good luck trying to figure it all out. The relatively small fee ($500 at Bradford Miller Law) is well worth it.
Posted by Bradford Miller Law, P.C.
Real Estate Law, Landlord Tenant Law, Estate Planning
134 N. LaSalle, Suite 2250
Chicago, IL 60602
312-238-9298Offering free legal representation to homeowners seeking a short sale
Key words: Chicago short sale attorney, Chicago landlord tenant law attorney, Chicago estate planning attorney, Chicago real estate attorney, Chicago real estate lawyer, Chicago building code violations, short sale attorney Chicago. This is intended to be advertising. Please consult with an attorney before acting on any information given here.
Monday, March 12, 2012
$3000 for homeowners doing a short sale?
Under HAFA (a government program), homeowners completing a short sale may be eligible to receive $3,000 towards relocation assistance. Please note that HAFA is a voluntary program and it is ultimately up to your lender whether you receive the $3,000. However, I can say with experience that many homeowners are in fact getting the $3,000. If you are interested in doing a short sale, my office offers FREE legal representation. Simply call my office to set up a free consultation.
You may be eligible for HAFA if you meet all of the following criteria:
You may be eligible for HAFA if you meet all of the following criteria:
- You live in the home or have lived there within the last 12 months.
- You have a documented financial hardship.
- You have not purchased a new house within the last 12 months.
- Your first mortgage is less than $729,750.
- You obtained your mortgage on or before January 1, 2009.
- You must not have been convicted within the last 10 years of felony larceny, theft, fraud, forgery, money laundering or tax evasion in connection with a mortgage or real estate transaction.
Posted by Bradford Miller Law, P.C.
Real Estate Law, Landlord Tenant Law, Estate Planning
134 N. LaSalle, Suite 2250
Chicago, IL 60602
312-238-9298
Offering free legal representation to homeowners seeking a short sale
Key words: Chicago short sale attorney, Chicago landlord tenant law attorney, Chicago estate planning attorney, Chicago real estate attorney, Chicago real estate lawyer, Chicago building code violations, short sale attorney Chicago. This is intended to be advertising. Please consult with an attorney before acting on any information given here.
Thursday, March 8, 2012
Higher FHA fees for buyers
From REALTOR® Magazine:
Starting April 1, FHA will increase its annual mortgage insurance premium for loans under $625,500, from 1.15 percent of the loan amount to 1.25 percent. Starting June 1, larger loan premiums will increase 0.35 percent of a percentage point, bringing the total premium costs up to 1.5 percent of the loan amount, The New York Times reports. FHA also will raise a fee for the upfront mortgage premium by 0.75 of a percentage point, which will now total 1.75 percent of the loan amount.
Chicago, IL 60602
312-238-9298
http://www.bradfordmillerlaw.com
Offering free legal representation to homeowners seeking a short sale
Starting April 1, FHA will increase its annual mortgage insurance premium for loans under $625,500, from 1.15 percent of the loan amount to 1.25 percent. Starting June 1, larger loan premiums will increase 0.35 percent of a percentage point, bringing the total premium costs up to 1.5 percent of the loan amount, The New York Times reports. FHA also will raise a fee for the upfront mortgage premium by 0.75 of a percentage point, which will now total 1.75 percent of the loan amount.
Posted by Bradford Miller Law, P.C.
Real Estate Law, Landlord Tenant Law, Estate Planning
134 N. LaSalle, Suite 2250Chicago, IL 60602
312-238-9298
http://www.bradfordmillerlaw.com
Offering free legal representation to homeowners seeking a short sale
Key words: Chicago short sale attorney, Chicago landlord tenant law attorney, Chicago estate planning attorney, Chicago real estate attorney, Chicago real estate lawyer, Chicago building code violations, short sale attorney Chicago. This is intended to be advertising. Please consult with an attorney before acting on any information given here.
Tuesday, February 28, 2012
Prices back to 2002 level
WASHINGTON (AP) -- Home prices fell in December for a fourth straight month in most major U.S. cities, as modest sales gains in the depressed housing market have yet to lift prices.
The Standard & Poor's/Case-Shiller home-price index shows prices dropped in December from November in 18 of the 20 cities tracked. The steepest declines were in Atlanta, Chicago and Detroit. Miami and Phoenix were the only cities to show an increase.
The declines partly reflect the typical slowdown that comes in the fall and winter.
Still, prices fell in 19 of the 20 cities in December compared to the same month in 2010. Only Detroit posted a year-over-year increase. Prices in Atlanta, Las Vegas, Seattle and Tampa dropped to their lowest points since the housing crisis began.
Nationwide, prices have fallen 34 percent nationwide since the housing bust, back to 2002 levels. A gauge of quarterly national prices, which covers 70 percent of U.S. homes, fell to its lowest point on records dating back to 1987.
"The pick-up in the economy has simply not been strong enough to keep home prices stabilized," said David M. Blitzer, chairman of the S&P's index committee. "If anything, it looks like we might have reentered a period of decline as we begin 2012."
The Case-Shiller monthly index covers half of all U.S. homes. It measures prices compared with those in January 2000 and creates a three-month moving average. The December data is the latest available.
Home values remain depressed despite some hopeful signs at the end of last year.
Builders are growing more optimistic after seeing more people express interest in buying this year. Sales of previously occupied homes are at their highest level since May 2010. More first-time buyers are making purchases. And the supply of homes fell last month to its lowest point in nearly seven years, which could push home prices higher.
Homes are the most affordable they've been in decades. And mortgage rates have never been cheaper.
Much of the optimism has come because hiring has picked up. More jobs are critical to a housing rebound.
But home prices tend to lag behind sales, which are still below healthy levels. And a large number of vacant homes are sitting idle on the market, which means prices will likely stay unchanged for several years.
Conditions are improving for those in position to buy a home. Still, many people can't afford to buy or are unable to qualify for mortgage. Some people in position to buy are holding off, worried that prices could fall even further.
The biggest reason why prices are still falling is foreclosures, which are still high across the country. Foreclosures and short sales — when a lender accepts less for a home than what is owed on a mortgage — are selling at an average discount of 20 percent.
With prices so low, many homeowners are doing short sales. My office helps people do short sales for me. Many of my clients also get $3,000 for relocation expenses. If you are interested in a short sale, contact my office for a free consultation.
Posted by Bradford Miller Law, P.C.
Real Estate Law, Landlord Tenant Law, Estate Planning
134 N. LaSalle, Suite 2250
Chicago, IL 60602
312-238-9298
http://www.bradfordmillerlaw.com/
Offering free legal representation to homeowners seeking a short sale
Key words: Chicago short sale attorney, Chicago landlord tenant law attorney, Chicago estate planning attorney, Chicago real estate attorney, Chicago real estate lawyer, Chicago building code violations, short sale attorney Chicago. This is intended to be advertising. Please consult with an attorney before acting on any information given here.
The Standard & Poor's/Case-Shiller home-price index shows prices dropped in December from November in 18 of the 20 cities tracked. The steepest declines were in Atlanta, Chicago and Detroit. Miami and Phoenix were the only cities to show an increase.
The declines partly reflect the typical slowdown that comes in the fall and winter.
Still, prices fell in 19 of the 20 cities in December compared to the same month in 2010. Only Detroit posted a year-over-year increase. Prices in Atlanta, Las Vegas, Seattle and Tampa dropped to their lowest points since the housing crisis began.
Nationwide, prices have fallen 34 percent nationwide since the housing bust, back to 2002 levels. A gauge of quarterly national prices, which covers 70 percent of U.S. homes, fell to its lowest point on records dating back to 1987.
"The pick-up in the economy has simply not been strong enough to keep home prices stabilized," said David M. Blitzer, chairman of the S&P's index committee. "If anything, it looks like we might have reentered a period of decline as we begin 2012."
The Case-Shiller monthly index covers half of all U.S. homes. It measures prices compared with those in January 2000 and creates a three-month moving average. The December data is the latest available.
Home values remain depressed despite some hopeful signs at the end of last year.
Builders are growing more optimistic after seeing more people express interest in buying this year. Sales of previously occupied homes are at their highest level since May 2010. More first-time buyers are making purchases. And the supply of homes fell last month to its lowest point in nearly seven years, which could push home prices higher.
Homes are the most affordable they've been in decades. And mortgage rates have never been cheaper.
Much of the optimism has come because hiring has picked up. More jobs are critical to a housing rebound.
But home prices tend to lag behind sales, which are still below healthy levels. And a large number of vacant homes are sitting idle on the market, which means prices will likely stay unchanged for several years.
Conditions are improving for those in position to buy a home. Still, many people can't afford to buy or are unable to qualify for mortgage. Some people in position to buy are holding off, worried that prices could fall even further.
The biggest reason why prices are still falling is foreclosures, which are still high across the country. Foreclosures and short sales — when a lender accepts less for a home than what is owed on a mortgage — are selling at an average discount of 20 percent.
With prices so low, many homeowners are doing short sales. My office helps people do short sales for me. Many of my clients also get $3,000 for relocation expenses. If you are interested in a short sale, contact my office for a free consultation.
Posted by Bradford Miller Law, P.C.
Real Estate Law, Landlord Tenant Law, Estate Planning
134 N. LaSalle, Suite 2250
Chicago, IL 60602
312-238-9298
http://www.bradfordmillerlaw.com/
Offering free legal representation to homeowners seeking a short sale
Key words: Chicago short sale attorney, Chicago landlord tenant law attorney, Chicago estate planning attorney, Chicago real estate attorney, Chicago real estate lawyer, Chicago building code violations, short sale attorney Chicago. This is intended to be advertising. Please consult with an attorney before acting on any information given here.
Wednesday, February 22, 2012
Foreclosure Deal to Spur New Wave of U.S. Home Seizures, Help Heal Market
The $25 billion settlement with banks over foreclosure abuses may result in a wave of home seizures, inflicting short-term pain on delinquent U.S. borrowers while making a long-term housing recovery more likely.
The money set aside for mortgage-debt forgiveness also can be used for short sales, when a lender agrees to a sale for less than owed on the home. Banks have been stepping up the sales by pre-approving deals, streamlining the closing process, forgoing their right to pursue unpaid debt and in some cases providing as much as $35,000 in “relocation” incentives. Short sales accounted for 33 percent of financially distressed transactions in November, up from 24 percent a year earlier, according to Santa Ana, California-based CoreLogic.
Excerpts taken from Bloomberg http://www.bloomberg.com/news/2012-02-09/foreclosure-deal-to-spur-new-wave-of-u-s-home-seizures-help-heal-market.html
Posted by Bradford Miller Law, P.C.
Real Estate Law, Landlord Tenant Law, Estate Planning
134 N. LaSalle, Suite 2250
Chicago, IL 60602
312-238-9298
http://www.bradfordmillerlaw.com/
Offering free legal representation to homeowners seeking a short sale
Key words: Chicago short sale attorney, Chicago landlord tenant law attorney, Chicago estate planning attorney, Chicago real estate attorney, Chicago real estate lawyer, Chicago building code violations, short sale attorney Chicago, Chicago short sales. This is intended to be advertising. Please consult with an attorney before acting on any information given here.
The money set aside for mortgage-debt forgiveness also can be used for short sales, when a lender agrees to a sale for less than owed on the home. Banks have been stepping up the sales by pre-approving deals, streamlining the closing process, forgoing their right to pursue unpaid debt and in some cases providing as much as $35,000 in “relocation” incentives. Short sales accounted for 33 percent of financially distressed transactions in November, up from 24 percent a year earlier, according to Santa Ana, California-based CoreLogic.
Excerpts taken from Bloomberg http://www.bloomberg.com/news/2012-02-09/foreclosure-deal-to-spur-new-wave-of-u-s-home-seizures-help-heal-market.html
Posted by Bradford Miller Law, P.C.
Real Estate Law, Landlord Tenant Law, Estate Planning
134 N. LaSalle, Suite 2250
Chicago, IL 60602
312-238-9298
http://www.bradfordmillerlaw.com/
Offering free legal representation to homeowners seeking a short sale
Key words: Chicago short sale attorney, Chicago landlord tenant law attorney, Chicago estate planning attorney, Chicago real estate attorney, Chicago real estate lawyer, Chicago building code violations, short sale attorney Chicago, Chicago short sales. This is intended to be advertising. Please consult with an attorney before acting on any information given here.
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