First-time Home Buyers Grabbing Houses and Tax Credit
By Kevin Collison RISMEDIA, June 4, 2009-(MCT)-Generation Y is getting jazzed about a new $8,000 federal tax credit for first-time home buyers-jumping at the opportunity to move up and out of their rentals.
"The last 90 days I've seen it go crazy," Kevin Foster, a real estate agent with Reece & Nichols in Lee's Summit, said Tuesday. "Every conference room has been full with agents working on offers, and many are people in their 20s."
Peter Abbey, 26, and his girlfriend, Abigail Barnett, 27, were among them.
Abbey, bar manager at Avenue Bistro in Kansas City, and Barnett, a hospital administrative assistant, had been saving to buy a house the past couple of years but weren't quite there yet. Until Congress approved the expanded tax credit in February.
Now they're leaving their rented home in the city for their own place in Roeland Park.
"We were saving money and waiting for the right time, and that definitely helped give us a push," Abbey said. "We were able to buy a little bit earlier because of the government tax credit."
The Kansas City Regional Association of Realtors® said April sales of new and existing homes were up 10% from March, with almost 2,500 homes sold. "We're seeing a lot of first-time buyers back in the market again," said Chris Collins of Keller-Williams and president of the association. "The tax credit along with historically low mortgage rates is affecting the market."
The tax credit was part of President Barack Obama's $787 billion American Recovery and Reinvestment Act. It's available to people buying their first home in 2009 as long as the purchase is completed by Dec. 1.
Because of the one- to two-month lag between a contract and a done deal, many home buyers are making offers on homes now.
As opposed to a $7,500 tax credit available in 2008, the latest incentive doesn't have to be repaid if the taxpayer remains in the home for at least three years.
At the national level, a report Tuesday said pending home sales in April were up 6.7% from March, the biggest monthly increase since October 2001, according to a seasonally adjusted index of sales contracts kept by the National Association of Realtors®.
Need advice on buying or selling Chicago real estate? Look to www.312Properties.com for the best in Chicago real estate, including Chicago short sales, and Chicago foreclosures. Whether you are a seasoned investor or a first time home buyer, we can help you with your real estate needs. Call Bradford at 312-519-7979 or email him at bradford@312properties.com.
Sunday, June 14, 2009
Thursday, June 11, 2009
Back on the market! 8 W. Monroe #1403
2 bedrooms, 2 bathrooms in downtown Chicago for only $249,900? YES! This condo is in a great location and is in great condition! Call or email me for more details.
Need advice on buying or selling Chicago real estate? Look to http://www.312properties.com/ for the best in Chicago real estate, including Chicago short sales, and Chicago foreclosures. Whether you are a seasoned investor or a first time home buyer, we can help you with your real estate needs. Call Bradford at 312-519-7979 or email him at bradford@312properties.com.
Friday, June 5, 2009
The frustrating process of short sales
Seeking Closure on Short Sales(Inman News)
All too often, short sales are really l-o-o-n-g sales — it can take many weeks and months to close a deal. And patience is increasingly wearing thin across the country as real estate agents become more vocal over the agonizing process. They argue that clearing the nation’s huge inventory of distressed properties is paramount to resuscitate an ailing housing market and sputtering U.S. economy. A year after sounding off over the problems, Realtors are ramping up a campaign to prod the mortgage-servicing industries to embrace universal standards and procedures to streamline the short-sale process. Those include a uniform short-sale application and an online listing of people who service short-sale transactions. If that doesn’t work, some are threatening to take their case to the White House and ask the Obama administration to convene a special task force. A call to action “It’s a disaster. It’s takes forever (to close a short sale). It’s unfair to the buyer and it’s unfair to the seller,” said George K. Wonica, a veteran Staten Island, N.Y., Realtor and chairman of the Nation Association of Realtors’ Conventional Finance and Lending Committee. “NAR has to exercise its power and its pressure to get people to the table.” While banks have cut down the number of days they take to respond to short-sale offers, they also report that communications with lenders remain spotty.
For the foreseeable future, foreclosure and short sales will remain a prominent feature in the real estate landscape. Short sales will continue to be an option for homeowners who owe more on their mortgage debt that their houses are worth. Saving money with short sales Indeed, the economic downturn wiped out about $3.3 trillion in home values last year, according to a report by Zillow.com, a company that offers online real estate information. Since the market peak four years ago, home equity has been eroded by more than $6 trillion. In 2008, short sales accounted for about 11 percent of U.S. home sales, while foreclosure made up 20 percent of the market. Most experts agree that short sales have a lesser impact to owners and lenders than bank-owned (REO) deals. That is reinforced in a study by Connecticut-based Clayton Holdings Inc., which follows more than $500 billion in mortgage loans for investors. The study showed lenders from May to October 2008 suffered an average 37 percent loan loss through short sales versus 56 percent on homes sold after foreclosure. We think (a) short sale is superior to foreclosure,” Knight said. “A short sale is not a bad deal all around.” But these deals are more complicated and time-consuming than traditional sales. All parties with liens on the house — from the second mortgage holder to the private mortgage insurer to the tax collector — must sign off on the transaction. That’s where many of the problems arise. Progress, of sorts Savvy real estate agents are setting realistic expectations for their buyers and sellers, stressing patience is a major virtue to survive the process. They suggest homeowners compile financial statements, hardship letters and other information early so a complete short-sale package can be sent to lenders and lessen the chances of a last-minute glitch. Fannie Mae and Freddie Mac are trying to speed up the process, too. Fannie Mae, for example, launched pilot programs this winter in Florida and Phoenix that preapproved short sales for dozen of homes. The government-backed lender completed the research on a troubled property in advance and obtained all of the necessary clearances in advance.
Need advice on buying or selling Chicago real estate? Look to www.312Properties.com for the best in Chicago real estate, including Chicago short sales, and Chicago foreclosures. Whether you are a seasoned investor or a first time home buyer, we can help you with your real estate needs. Call Bradford at 312-519-7979 or email him at bradford@312properties.com.
All too often, short sales are really l-o-o-n-g sales — it can take many weeks and months to close a deal. And patience is increasingly wearing thin across the country as real estate agents become more vocal over the agonizing process. They argue that clearing the nation’s huge inventory of distressed properties is paramount to resuscitate an ailing housing market and sputtering U.S. economy. A year after sounding off over the problems, Realtors are ramping up a campaign to prod the mortgage-servicing industries to embrace universal standards and procedures to streamline the short-sale process. Those include a uniform short-sale application and an online listing of people who service short-sale transactions. If that doesn’t work, some are threatening to take their case to the White House and ask the Obama administration to convene a special task force. A call to action “It’s a disaster. It’s takes forever (to close a short sale). It’s unfair to the buyer and it’s unfair to the seller,” said George K. Wonica, a veteran Staten Island, N.Y., Realtor and chairman of the Nation Association of Realtors’ Conventional Finance and Lending Committee. “NAR has to exercise its power and its pressure to get people to the table.” While banks have cut down the number of days they take to respond to short-sale offers, they also report that communications with lenders remain spotty.
For the foreseeable future, foreclosure and short sales will remain a prominent feature in the real estate landscape. Short sales will continue to be an option for homeowners who owe more on their mortgage debt that their houses are worth. Saving money with short sales Indeed, the economic downturn wiped out about $3.3 trillion in home values last year, according to a report by Zillow.com, a company that offers online real estate information. Since the market peak four years ago, home equity has been eroded by more than $6 trillion. In 2008, short sales accounted for about 11 percent of U.S. home sales, while foreclosure made up 20 percent of the market. Most experts agree that short sales have a lesser impact to owners and lenders than bank-owned (REO) deals. That is reinforced in a study by Connecticut-based Clayton Holdings Inc., which follows more than $500 billion in mortgage loans for investors. The study showed lenders from May to October 2008 suffered an average 37 percent loan loss through short sales versus 56 percent on homes sold after foreclosure. We think (a) short sale is superior to foreclosure,” Knight said. “A short sale is not a bad deal all around.” But these deals are more complicated and time-consuming than traditional sales. All parties with liens on the house — from the second mortgage holder to the private mortgage insurer to the tax collector — must sign off on the transaction. That’s where many of the problems arise. Progress, of sorts Savvy real estate agents are setting realistic expectations for their buyers and sellers, stressing patience is a major virtue to survive the process. They suggest homeowners compile financial statements, hardship letters and other information early so a complete short-sale package can be sent to lenders and lessen the chances of a last-minute glitch. Fannie Mae and Freddie Mac are trying to speed up the process, too. Fannie Mae, for example, launched pilot programs this winter in Florida and Phoenix that preapproved short sales for dozen of homes. The government-backed lender completed the research on a troubled property in advance and obtained all of the necessary clearances in advance.
Need advice on buying or selling Chicago real estate? Look to www.312Properties.com for the best in Chicago real estate, including Chicago short sales, and Chicago foreclosures. Whether you are a seasoned investor or a first time home buyer, we can help you with your real estate needs. Call Bradford at 312-519-7979 or email him at bradford@312properties.com.
Relief for Homeowners
Home values have plunged to their lowest levels since 2004, according to First American CoreLogic. And at the end of 2008, one in five mortgage holders owed more than their house was worth. That's why, even with tantalizingly low interest rates, many homeowners haven't been able to find a lender willing to refinance their mortgage. Now lenders may loosen their purse strings. The $75 billion the government is injecting into housing could help some nine million homeowners refinance -- or, if they're in dire straits, modify the terms of their loan.
The refinancing program is aimed at homeowners who are current on their payments but whose mortgages have fallen below the 20% equity threshold because of declining home values. Under the new program, you're eligible for refinancing if your loan is owned or was packaged for sale in the secondary market by Fannie Mae or Freddie Mac. To find out whether you qualify, call the lender to which you make your payments, or contact Fannie Mae at 800-732-6643 or visit http://www.fanniemae.com/; or contact Freddie Mac at 800-373-3343, http://www.freddiemac.com/avoidforeclosure. The new loan can't exceed 105% of the current market value of your home, and you can't get any cash out. The program ends in June 2010.
(Kiplingers Personal Finance, May 2009)
Need advice on buying or selling Chicago real estate? Look to www.312Properties.com for the best in Chicago real estate, including Chicago short sales, and Chicago foreclosures. Whether you are a seasoned investor or a first time home buyer, we can help you with your real estate needs. Call Bradford at 312-519-7979 or email him at bradford@312properties.com.
The refinancing program is aimed at homeowners who are current on their payments but whose mortgages have fallen below the 20% equity threshold because of declining home values. Under the new program, you're eligible for refinancing if your loan is owned or was packaged for sale in the secondary market by Fannie Mae or Freddie Mac. To find out whether you qualify, call the lender to which you make your payments, or contact Fannie Mae at 800-732-6643 or visit http://www.fanniemae.com/; or contact Freddie Mac at 800-373-3343, http://www.freddiemac.com/avoidforeclosure. The new loan can't exceed 105% of the current market value of your home, and you can't get any cash out. The program ends in June 2010.
(Kiplingers Personal Finance, May 2009)
Need advice on buying or selling Chicago real estate? Look to www.312Properties.com for the best in Chicago real estate, including Chicago short sales, and Chicago foreclosures. Whether you are a seasoned investor or a first time home buyer, we can help you with your real estate needs. Call Bradford at 312-519-7979 or email him at bradford@312properties.com.
Sunday, May 31, 2009
125 S. Jefferson #2108 - $247,900 plus $35,000 for parking
This highly upgraded 1-bedroom condo has a great layout and is very spacious. Hardwood floors, stainless steel appliances, large balcony, granite countertops, and crown molding are some of the unit features. The building has a 24-hour doorman, exercise room, park/dog area, bike room, etc. For more information call Brad at 312-519-7979 or email him at bradford@312properties.com.
Look to http://www.312properties.com/ for the best in Chicago real estate, including Chicago short sales, and Chicago foreclosures. Whether you are a seasoned investor or a first time home buyer, we can help you with your real estate needs. Call Bradford at 312-519-7979 or email him at bradford@312properties.com.
Thursday, May 28, 2009
Homebuyer Tax Credit for down payments
REALTOR® Magazine reports that media stories that the U.S. Department of Housing and Urban Development is backing away from a plan to monetize the first-time homebuyer tax credit are off the mark. The plan is moving forward, HUD is just working out the technical details and will be publishing them soon in a mortgagee letter, according to a HUD spokesperson. (Courtesy of the Illinois Association of Realtors)
Need advice on buying or selling Chicago real estate? Look to www.312Properties.com for the best in Chicago real estate, including Chicago short sales, and Chicago foreclosures. Whether you are a seasoned investor or a first time home buyer, we can help you with your real estate needs. Call Bradford at 312-519-7979 or email him at bradford@312properties.com.
Need advice on buying or selling Chicago real estate? Look to www.312Properties.com for the best in Chicago real estate, including Chicago short sales, and Chicago foreclosures. Whether you are a seasoned investor or a first time home buyer, we can help you with your real estate needs. Call Bradford at 312-519-7979 or email him at bradford@312properties.com.
Tuesday, May 26, 2009
Recent Transactions
212 W. Washington #1403 - JUST SOLD
345 N. LaSalle #3501 - UNDER CONTRACT
8 W. Monroe #1403 - UNDER CONTRACT
125 S. Jefferson #2108 - JUST LISTED
Even in this tough market, Bradford Miller knows how to sell homes. If you are interested in selling your home, contact Bradford today!
Need advice on buying or selling Chicago real estate? Look to www.312Properties.com for the best in Chicago real estate, including Chicago short sales, and Chicago foreclosures. Whether you are a seasoned investor or a first time home buyer, we can help you with your real estate needs. Call Bradford at 312-519-7979 or email him at bradford@312properties.com.
345 N. LaSalle #3501 - UNDER CONTRACT
8 W. Monroe #1403 - UNDER CONTRACT
125 S. Jefferson #2108 - JUST LISTED
Even in this tough market, Bradford Miller knows how to sell homes. If you are interested in selling your home, contact Bradford today!
Need advice on buying or selling Chicago real estate? Look to www.312Properties.com for the best in Chicago real estate, including Chicago short sales, and Chicago foreclosures. Whether you are a seasoned investor or a first time home buyer, we can help you with your real estate needs. Call Bradford at 312-519-7979 or email him at bradford@312properties.com.
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