Mortgage Forgiveness Act Extended Until December 2013

The late night deal to avert the "fiscal cliff" included an extension of the 2007 Mortgage Forgiveness Debt Relief Act which was to expire on 12/31/2012.  The relief act's extension was crucial to the recovering housing market.  

Basically, what this means is homeowners doing a short sale will not have to pay income taxes on the forgiven debt as long as they close by 12/31/2013.

If you are interested in doing a short sale, call my office.  We offer FREE legal representation for homeowners thinking about doing a short sale.  It is also possible we may be able to get some relocation assistance for you ($3,000 or more) at the closing.

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 1040

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.

 

November Home Sales Rise 35.6 Percent in Suburban Chicago

 by Peter Ricci

Home sales in suburban Chicago increased by 35.6 percent year-over-year in November as the market continued to show signs of a recovery, according to the latest stats from the Mainstreet Organization of Realtors (MORe).
Altogether, MORe’s data covered 200 different communities in DuPage, Lake and suburban Cook county.

A Strong November for Real Estate in Suburban Chicago

The detached single-family home market, MORe found, had particularly impressive numbers in November:

• The number of detached homes under contract grew 54 percent year-over-year in November for suburban Chicago, with the median sale price increasing by 3 percent.
• As impressive as that 54 percent may be, though, MORe uncovered some sales in specific communities that seem fantastical: in Carol Stream, for instance, the single-family detached home market posted a 125 percent year-over-year increase in sales; in Downers Grove, sales were up 138 percent; and in La Grange, they rose an incredible 220 percent.
• Other communities spotlighted by MORe included: Franklin Park, where sales jumped 120 percent; Hanover Park, where they rose 109 percent; and Hoffman Estates, Rolling Meadows and Villa Park, where sales rose a respective 119, 133 and 108 percent.

Incentivizing Homebuyers in Chicago Real Estate

Michael Parent, the managing broker of Coldwell Banker Residential Brokerage in St. Charles and 2012-2013 president-elect of MORe, said his office has “definitely been busier,” and he credits more accurate pricing on the part of home sellers as the main reason for the increase in business.
“Sellers have finally priced their properties at where they have to be,” Parent said. “They’re putting themselves in the right position.”
For too long, Parent continued, sellers clung to the long-forgotten prices of the boom years, but now that they are adapting to the current housing market and pricing their homes accordingly, they are enticing homebuyers and opening themselves to multiple offer situations. One of his office’s agents, Parent added, conducted 26 showings recently for a properly priced property over a single weekend.
“Price it right,” Parent said, “and buyers have an incentive.”

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 1040

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.

 

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.

Chicago-area home sales have best October in 6 years

By Mary Ellen PodmolikTribune 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.

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.

New foreclosure filings swell 27% in Chicago area

By Mary Ellen PodmolikTribune staff reporter

9:18 a.m. CDT, July 12, 2012

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.

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

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.

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

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.