Smart Blog by Rent Smart & Smart Property

Rental Prices Could Jump Double Digits as Vacancies Drop

2011-03-18T11:55:00.001-07:00

Renters beware: Double-digit rent hikes may be coming soon amid rental vacancy rates that have dipped below the 10 percent mark, where they had been lodged for most of the past three years.

"Young people are starting to get rid of their roommates and move out of their parent’s basements," said Peggy Alford, president of Rent.com, predicting the vacancy rate will hover at a mere 5 percent by 2012. With fewer units on the market, prices will explode.

Rent hikes have averaged less than 1 percent a year during the past decade, according to Commerce Department statistics, adjusted for inflation. Now, Alford expects rents to spike 7 percent or so in each of the next two years — to a national average that will top $800 per month.

In the hottest rental markets, the increases will likely top the 10 percent mark annually for the next couple of years. In San Diego, Alford anticipates rents will rise more than 31 percent by 2015. In Seattle rents will climb 29 percent over that period; and in Boston, they may jump between 25 percent and 30 percent.

This is a sharp change from the recession, when many Americans couldn’t afford to live on their own. More than 1.2 million young adults moved back in with their parents from 2005 to 2010, said Lesley Deutch of John Burns Real Estate Consulting. Many others doubled up together.

As a result, landlords had to reduce prices and offer big incentives to snag renters.

Now that the recession is easing, many of these young people are ready to find new digs, mostly as renters, not owners. Plus, the foreclosure crisis continues unabated, and the millions losing their homes are looking for new places to live.

Apartment developers many not be able to keep up with this heightened demand, which will force prices upwards, according to Chris Macke, a real estate analyst with CoStar, which tracks multi-family housing trends.

"There will be an envelope of two or three years," said Macke, "when the rise in demand for rentals will exceed the industry’s ability to meet it."

Plus, Alford added, "there’s been a shift in the American Dream. We’re learning from our surveys that a huge proportion of people are choosing to rent."

They’ve experienced the downsides of homeownership — or seen friends and family suffer — and don’t want to take the risks or pay the higher costs of homeownership.

Where homeownership costs are particularly high, there are many more renters than owners. In Manhattan, for example, only about 20 percent own their homes; in San Francisco, about of third of the population does; in Los Angeles, less than 40 percent; and in Chicago, about 44 percent.
There’s one factor that could rein in rent increases: the huge number of foreclosed homes that could hit the market over the next few years.

In many markets, like Phoenix and Las Vegas, there are neighborhoods filled with recently built, single-family homes going for fire-sale prices. When the cost of owning homes falls well below the costs of renting them, more people will buy.

"That’s always been the biggest competition for rentals," said Deutch

Saturday St. Patrick's Day Celebration in Chicago

2011-03-11T14:42:00.001-08:00

St. Patrick's Day is just around the corner and with it some Chicago traditions you won't want to miss!

First, the dying of the Chicago River green will take place at 10am at Michigan and Wacker. From there the St. Patrick's Day Parade kicks off at noon and runs North on Columbus Drive from Balboa to Monroe. And, if you decide to make a day of it downtown, the St. Patrick's Day Fireworks and Celtic music begin at 7:00pm at Navy Pier.

What other festivities do you plan on participating in this weekend?

Top Dog Parks of Chicago

2011-03-02T15:12:00.001-08:00

As Chicago starts to warm up with the first touches of spring it's a great time for those of us with four-legged friends to hit the sidewalks and get back to some of the city's best dog parks. Not only is a great way to get out, enjoy the weather and enjoy some exercise but to network and meet new people. Below you'll find some of our favorite spots, just be sure to update you dog's permit and tag before heading out.

1. Challenger Park
1101 W. Irving Park Road
Chicago, IL 60613
(312)742-7802
The dog park is located on Seminary along the west side of the train tracks, just north of Irving Park.

2. Churchill Field Park
1825 N. Damen Avenue
Chicago, IL
(312)742-7554 (Managed by Holstein Park)
The dog park is located on the park's southeast side.

3. Coliseum Park
1466 S. Wabash
Chicago, IL 60605
(312)747-7640

4. Grant Park
S. Columbus Drive near 9th Street
Chicago, IL 60605
(312)742-7648

5. Hamlin Park
3035 N. Hoyne Avenue
Chicago, IL 60618
(312)742-7785
The dog park is located in the park's southwest corner.

6. Lake Shore East Park
450 E. Benton Place
(West of Lake Shore Drive, south of Wacker Drive, and North of Randolph Street.)
Chicago, IL 60611

7. Margate Park
4921 N. Marine Drive
Chicago, IL 60640
(312) 742-7522
The dog area is located toward the southeast end of the park.

8. Montrose Beach
Wilson Avenue and the Lake
Chicago, IL 60640
(312)742-5121

9. Grace Noethling Park (aka Wiggly Field)
2645 N. Sheffield Avenue
Chicago, IL
The entire park is dedicated to dogs, so you should have no problem finding the dog "area."

10. River Park
5100 N. Francisco
Chicago, IL
(312)742-7516

11. Walsh Playground Park
1722 N. Ashland Avenue
Chicago, IL
The dog park is located at the north end of the park, along the train tracks.

12. Wicker Park
1425 N. Damen
Chicago, IL
The dog area is located in the park's southeast corner.

Is your favorite dog friendly place in Chicago missing from our list? Let us know so we can add it!

Rental Prices Will Increase Soon. Start Looking Now!

2011-02-23T08:02:00.001-08:00

If you were able to dodge a rent increase in 2010 don't assume you'll be so lucky this year.

Demand is outstripping supply, meaning landlords both downtown and in the suburbs have many existing and prospective tenants just where they want them. And property managers know it.

Last year, landlords were able to push through rent hikes of about 7 percent. This year, rents are expected to rise by an additional 7 percent to 8 percent, particularly in newer buildings downtown, according to a forecast by Appraisal Research Counselors.

For the prospective tenant looking for a bargain, which means the time to shop for a lease that includes a free month of rent or a flat-screen television, is now. By spring, those rent concessions are likely to evaporate, and leasing managers expect to hear back from prospective tenants who thought they'd find a better deal across the street but didn't.

"The concessions are still out there, but as soon as you hit that April market you're going to start seeing a lot of push on rents," said Ron DeVries, vice president at Appraisal Research Counselors.

"Last year everybody dropped the rates to get someone in the door," said general manager Phyllis Kempton. “Now, everyone is raising their rent. People are accepting of 8 percent."Meanwhile, at Flair Tower, renters will see renewal rates increase 4 percent to 6 percent, and new renters will see fewer concessions, said general manager Amanda Kopko.

Landlords "never hit the renewals as hard as the new tenants," DeVries said. "But if the building is 98, 99 percent occupied, they're going to take a more aggressive stance because they can sign another tenant at the full rate."

A combination of factors is responsible for the current leasing environment. Consumers with the financial resources to buy properties remain leery and continue to wait for the housing market to bottom; other people are forced into apartments because they've lost their homes to foreclosure.

Meanwhile, the supply of individually owned condos rented by their owners, called the "shadow" market, reached a record 5,718 units last year. But with condo construction at a virtual standstill, little new inventory is expected. Also, some potential tenants are fearful of renting condos, fearing that the owners may fall into foreclosure.

Woodstock Institute, a Chicago research and advocacy group, reported Thursday that condominiums accounted for 42.5 percent of all foreclosure activity in the six-county Chicago area in 2010. Also, delivery of new apartment projects downtown has plummeted in the near term. More than 2,500 new downtown apartments came online in 2010. This year, the only new building is Randolph Tower, with 312 units, followed by potential additions of 650 units in 2012 and 2,000 units in 2013, the year in which rent increases may moderate.

Also, the national unemployment rate for people over age 25 with a college degree was 4.5 percent in January, according to the Labor Department, compared with 9 percent for the population as a whole, so they have the financial footing to seek out, and afford, apartments.

From the fourth quarter of 2009 to the same period last year, 2,000 more apartments were rented in downtown Chicago. "That's a huge number," DeVries said. "Absorption downtown is phenomenal."

The rental trends aren't expected to extend to all corners of the city and suburban markets or to every building. Rent increases in older buildings, those generally built before the 1980s, are trailing behind those of newer buildings.

And not everyone has enough confidence in Chicago's job market to test a rent increase. Arnell Cordero, leasing director of Group Fox Property Management, which manages 2,500 units in Chicago, Evanston and Hoffman Estates, has seen fewer job transferees from other states and more of his younger renters move back home.

"We're a little more open to negotiation," Cordero said. "We can ask (for a rent increase), but it doesn't mean it's engraved in stone."

The 2,356-unit Presidential Towers, which just copleted a $2 million renovation of its lobby and common areas, anticipates rents this spring will be as much as 8 percent higher than in May 2010.

Logan Square’s Time Comes Round in Chicago

2011-02-01T09:55:00.001-08:00

Via The New York Times, comes an an article on Logan Square:

For decades Logan Square, on the northwest side of Chicago, has been on the brink of gentrification by urbanites drawn to its broad boulevards lined with grand, turn-of-the-20th-century mansions and two-flats built by well-to-do immigrants. By midcentury, the neighborhood had declined owing to suburban flight, and many houses were chopped up into apartments. But the neighborhood has been revived in recent years as restaurants, coffee shops and bars have opened, encouraged by city loans and grants for small-business development. An affordable alternative to the neighboring and now pricey districts of Bucktown and Wicker Park, Logan Square is a magnet for creative types running everything from hip hair salons (Wilco’s Jeff Tweedy gets his locks trimmed at Sparrow salon) to an international film series.

Hot spots featured in the article include:
Longman & Eagle, Owen & Engine, Revolution Brewing and Wolfbait & B-girls.

Top Neighborhoods to Rent Chicago Apartments

2011-01-26T08:17:00.001-08:00

With over 2.8 million people in the city who live here year-round, it can be difficult to even think about finding the right place for you in the city of Chicago. After all, if there are so many people who live here, how are you going to be able to find the perfect Chicago apartments to look at and rent? And, if you're on a budget, it can be even more difficult to think about looking at Chicago apartments for rent. But our agents can easily find the perfect apartment for your needs that will also be in your budget. There are many neighborhoods throughout Chicago that appeal to all types of people. Let's take a look at a few of the top neighborhoods to rent apartments in Chicago.

Logan Square
Located on the Northwest side of Chicago, Logan Square is known for the Illinois Centennial Monument located at the center of the traffic circle formed by Kedzie and Logan Boulevards and Milwaukee Avenue. The monument was erected to celebrate the 100th year of Illinois statehood. There is a wide variety of cuisine available with over 100 restaurants, cafes, and bakeries in this very family friendly neighborhood. Logan Square's land area is 3.2 square miles with a population of 83,000 people of many ethnicities. Apartments in Logan square range from $750 for a one bedroom, $900 for a two bedroom, and $1100 for a three bedroom.

Avondale
Also located in Northwest Chicago, Avondale is home to a total of 43,000 people with a land area of 2 square miles. In the late 19th century and early 20th century, large numbers of Polish immigrants settled in Avondale. Though most of the Polish have moved out to other neighborhoods, Avondale is still rich in Polish history with Polish character still evident in the local arts and culture. Apartments in Avondale range from $650 for a one bedroom, $775 for a two bedroom, and $950 for a three bedroom.

Lincoln Park
Lincoln Park is one of the most expensive areas to live in Chicago with the average home selling for 1 million dollars. The community was named for its parkland which contains Lincoln Park Zoo, Chicago History Museum, Lincoln Park Conservatory, ponds, playing fields and many entertainment venues. The neighborhood has many upscale stores, restaurants, and shopping centers. Apartments in Lincoln Park can start around $1000 and go all the way up to as much as $10,000 per month.

Wicker Park
Many young white-collar workers call this neighborhood home due to its easy access to downtown Chicago. It is close to public transportation and the Loop. Wicker Park has many entertainment venues, bars, restaurants, and stores. The neighborhood has grown substantially and as a result real estate prices have continued to rise. Apartment prices in Wicker Park can be comparable to Lincoln Park with one bedrooms starting at $900, two bedrooms at $1200, and three bedrooms at $1400. Depending on location, amenities and size, apartments can go all the way up to $3000.

One of the great things about Chicago apartments, is that there is a wide array of different sizes and styles of apartments, which means that no matter what your budget is, you should be able to find something that suits your needs. Learn more about the different neighborhoods before you start your search for Chicago apartments and you'll be able to find areas in the city where Chicago apartment rentals are much less expensive than they are in other areas.

{Image via Ork Posters}

Two States Sue Bank of America Over Mortgages

2010-12-20T08:15:00.001-08:00

The attorneys general of Arizona and Nevada on Friday filed a lawsuit against Bank of America, accusing it of engaging in “widespread fraud” by misleading customers with “false promises” about their eligibility for modifications on their home mortgages.

In withering complaints filed in state courts in both states, the attorneys general accused Bank of America of assuring customers that they would not be foreclosed upon while they were seeking loan modifications, only to proceed with foreclosures anyway; of falsely telling customers that they must be in default to obtain a modification; of promising that the modifications would be made permanent if they completed a trial period, only to renege on the deal; and of conjuring up bogus reasons for denying modifications.

“Bank of America’s callous disregard for providing timely, correct information to people in their time of need is truly egregious,” Catherine Cortez Masto, the attorney general of Nevada said in a statement.

The lawsuit comes as top prosecutors nationwide are investigating whether the paperwork that banks used to support foreclosure cases often was egregiously sloppy, sometimes relying on robo-signers — employees who signed hundreds of documents a day — to sign sworn court documents.

Tom Miller, Iowa’s attorney general who is heading the multistate investigation into foreclosure fraud allegations, said the two states’ lawsuits would not dilute his inquiry. A Bank of America spokesman, Dan Frahm, said bank officials were disappointed that the lawsuits were filed “at this time,” given the bank’s cooperation with the multistate investigation.

Arizona and Nevada are among the states hardest hit by the housing downturn, and the state attorneys general said their lawsuits were prompted by hundreds of complaints by consumers who sought modifications of their mortgages.

The complaints in the lawsuit in many ways echoed problems encountered by homeowners nationwide who have tried with little luck to obtain mortgage modifications from banks, often through a federal program set up for that purpose. Thousands of homeowners complain that banks repeatedly lose their documents, fail to return calls or foreclose when a homeowner believes he or she is still negotiating a modification.

The lawsuit noted that Bank of America ranked last in “virtually every homeowner experience metric” monitored in a monthly report on the federal home loan modification program.

Former employees said that Bank of America’s modification staff was “chaotic, understaffed and not oriented to customers,” according to a news release. The Arizona complaint cites the case of an Apache Junction couple who faced foreclosure. Terry Goddard, attorney general of Arizona, said the lawsuit was filed in part because the bank had violated the terms of a 2009 consent decree that Countrywide Home Loans — which Bank of America purchased in 2008 — had engaged in “widespread consumer fraud” in originating and marketing mortgages. As part of the judgment, Countrywide had agreed to create a loan modification program for some Arizona homeowners.

Most Americans Concerned About Housing Payments

2010-11-01T12:48:00.003-07:00

More than half of Americans are worried about not having enough money to pay their mortgage or rent, according to a survey from the Washington Post released today.

A third of respondents were "very concerned" about their ability to make housing payments, while a fifth were "somewhat concerned," adding up to 53 percent of respondents. This contrasts to the results of similar surveys the newspaper conducted in February 2009 and December 2008.

In the 2008 survey, 37 percent of respondents said they were at least "somewhat concerned" about making their housing payments. By February 2009, that figure had risen to 46 percent.

In the latest survey, 15 percent of respondents said they were "not so concerned," while 28 percent said they were "not at all concerned." Three-quarters of African Americans were concerned; 55 percent were "very concerned," the paper said. The rest had no opinion.

"Americans' views about a moratorium are intertwined with their concerns about their personal finances and the economy. Opinions about whether homeowners or mortgage lenders are more to blame for homeowners' challenge in making payments and avoiding foreclosure haven't changed much since a September 2007 poll conducted by the Wall Street Journal and NBC.

The Washington Post survey found that 45 percent of respondents blamed lenders more, 26 percent blamed homeowners more, and 20 percent said they were equally at fault. The 2007 WSJ-NBC poll found 48 percent blamed lenders more, 27 blamed homeowners more, and 22 percent said they were equally responsible.

Despite concerns about the economy, the majority of respondents, 61 percent, said that now was a good time to buy a home. Twenty-nine percent said it was a bad time to buy, and 10 percent had no opinion.

Most Americans Concerned About Housing Payments

2010-11-01T12:48:00.001-07:00

More than half of Americans are worried about not having enough money to pay their mortgage or rent, according to a survey from the Washington Post released today.

A third of respondents were "very concerned" about their ability to make housing payments, while a fifth were "somewhat concerned," adding up to 53 percent of respondents. This contrasts to the results of similar surveys the newspaper conducted in February 2009 and December 2008.

In the 2008 survey, 37 percent of respondents said they were at least "somewhat concerned" about making their housing payments. By February 2009, that figure had risen to 46 percent.

In the latest survey, 15 percent of respondents said they were "not so concerned," while 28 percent said they were "not at all concerned." Three-quarters of African Americans were concerned; 55 percent were "very concerned," the paper said. The rest had no opinion.

"Americans' views about a moratorium are intertwined with their concerns about their personal finances and the economy. Opinions about whether homeowners or mortgage lenders are more to blame for homeowners' challenge in making payments and avoiding foreclosure haven't changed much since a September 2007 poll conducted by the Wall Street Journal and NBC.

The Washington Post survey found that 45 percent of respondents blamed lenders more, 26 percent blamed homeowners more, and 20 percent said they were equally at fault. The 2007 WSJ-NBC poll found 48 percent blamed lenders more, 27 blamed homeowners more, and 22 percent said they were equally responsible.

Despite concerns about the economy, the majority of respondents, 61 percent, said that now was a good time to buy a home. Twenty-nine percent said it was a bad time to buy, and 10 percent had no opinion.

Chicago Home Prices Rise for Fourth Straight Month

2010-10-27T14:02:00.001-07:00

Nationwide, home prices rose slightly in August compared to the same month last year, according to the monthly Standard & Poor's/Case-Shiller Home Price Index.

A 10-city composite index rose 2.6 percent year-over-year in August and a 20-city composite index rose 1.7 percent year-over-year. Compared to July, both indexes dipped slightly for the first time in several months: 0.1 percent and 0.2 percent, respectively.

Fifteen out of 20 tracked metro areas saw index declines compared to July. Despite the overall index increase, 12 metro areas also saw declines compared to August 2009. Seventeen metro areas saw slowing annual growth rates.

Average home prices nationwide are back to late 2003 and early 2004 levels.

Chicago, Detroit, New York and Washington, D.C., have posted at least four straight months of month-to-month increases, though none of the 20 metro areas posted more than a 1 percent increase from July, the report said.

Homebuilder confidence up but still low

2010-10-18T15:00:00.001-07:00

An index measuring homebuilder conference rose for the first time in five months during October, but showed the vast majority of builders view the current level of sales as poor.

Although more builders are expecting sales to pick up in the next six months, they remain in the minority, and traffic from prospective buyers remains low.

The National Association of Home Builders/Wells Fargo Housing Market Index asks builders builders to rate current single-family home sales, sales expectations for the next six months, and traffic from prospective buyers.

The index gauging current sales conditions rose three points in October, to 16. The index gauging sales expectations in the next six months rose five points, to 23. The index gauging traffic of prospective buyers rose two points, to 11.

The new-homes market is finally moving past the lull that occurred when the homebuyer tax credits expired and economic growth stalled this summer," said NAHB Chief Economist David Crowe in a press release.
Challenges to homebuilders include competition from foreclosures, inaccurate appraisal values, and "general consumer uncertainty about the economy and job market," Crowe said.

The toughest obstacles are credit-related, Crowe said: the scarcity of construction credit for builders and tighter mortgage requirements for consumers.

Mortgage Rates Ease Again

2010-10-15T10:33:00.001-07:00

Mortgage rates are at new lows for a third consecutive week as investor demand for mortgage-backed securities that fund most home loans continues to be more than adequate to satisfy demand for mortgages.

Rates for 30-year fixed-rate mortgages averaged 4.19 percent with an average 0.8 point for the week ending Oct. 14, down from 4.27 percent last week and 4.92 percent a year ago, Freddie Mac said in releasing the results of its weekly Primary Mortgage Market Survey.

That's a new low in Freddie Mac's records, which date back to 1971. Rates haven't been lower since April 1951, according to another set of data based on FHA rates that goes back to 1948.

Rates for 15-year fixed-rate mortgages averaged 3.62 percent with an average 0.7 point, down from 3.72 percent last week and 4.37 percent a year ago. That's a new low in Freddie Mac records dating to 1991.
Rates for 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) loans averaged 3.47 percent with an average 0.6 point, unchanged from a week ago but down from 4.38 percent a year ago. Rates on 5-year ARM loans have never been lower since Freddie Mac began tracking them in 2005.

"September's employment report held no big surprises to financial markets, allowing long-term bond yields and fixed mortgage rates to continue to ease," said Freddie Mac Chief Economist Frank Nothaft. "As a result, both the 30-year and 15-year fixed mortgage rates hit all-time record lows for the third consecutive week."

Although the latest slide in mortgage rates has sparked another refinancing boom, demand for purchase loans remains down 37.1 percent from a year ago, according to a separate survey by the Mortgage Bankers Association.

Via Inman News

Home-sale discounts jump 24%, Chicago 5th Highest Share of Discounted Listings

2010-10-14T08:36:00.001-07:00

Sellers cut asking prices on 2.1 percent more homes last month compared to August -- a total of 323,316 homes.

Meanwhile, total inventory rose 0.6 percent from August and 13.6 percent from September 2009 to a total of 675,872 homes. The share of discounted homes is therefore 47.8 percent, up from 43.8 percent in September 2009 when 260,358 homes had experienced a price cut.

On average, sellers had reduced their list prices twice last month. Median list price last month was $245,265, down 1.8 percent from August and 15.3 percent lower than in September 2009.

Markets with the highest share of discounted listings (of 26 markets surveyed):

Jacksonville, Fla. (55.8 percent)
Phoenix, Ariz. (55.4 percent)
Minneapolis-St. Paul, Minn. (53.2 percent)
Orlando, Fla. (52.8 percent)
Chicago, Ill. (52.1 percent)
Tucson, Ariz. (51.7 percent)
Baltimore, Md. (51.3 percent)

Markets with the lowest share of discounted listings (of 26 markets surveyed):

Denver, Colo. (34.4 percent)
Los Angeles (39.1 percent)
Richmond, Va. (42.9 percent)
Miami-Ft. Lauderdale-Palm Beach, Fla. (43.3 percent)
San Francisco (45.2 percent)
Charlotte, N.C. (46 percent)

Title Companies Asking For Reassurance from "Robo-Signing" Lenders

2010-10-12T14:29:00.001-07:00

In addition to satisfying federal and state regulators that they're following the letter of the law, lenders embroiled in the "robo signing" scandal may soon have to provide warranties to title insurers in order to continue selling foreclosed homes.

Bank of America has already agreed to provide warranties to Fidelity National Financial Inc. that cover the title insurer's costs if employees processing foreclosure documents for the bank make mistakes, Bloomberg News reports, and is in talks with other title insurers to do the same.

Bank of America announced Friday that it would temporarily halt foreclosure sales in all 50 states until it completed a review of its foreclosure procedures, which so far "shows the basis for foreclosure decisions is accurate."

At least four other loan servicers have slowed or halted some foreclosure proceedings in 23 judicial foreclosure states, following allegations that employees handling court filings for the companies signed affidavits that contained information they had not personally verified.Other loan servicers taking action, to date, are GMAC Mortgage, JP Morgan Chase, PNC Financial Services Group Inc. and Litton Loan Servicing.

In addition to mollifying state and federal officials, lenders that want to sell properties they have foreclosed must also convince title insurers they have followed the proper procedures.

ALTA, the title insurance industry's trade group, continues to maintain that flaws in documentation filed in the foreclosure process should ultimately have little adverse impact on buyers of "real estate owned" (also known as bank-owned or REO) properties or on title insurance claims.

Old Republic National Title Insurance Co. has reportedly stopped insuring title for properties foreclosed on by JP Morgan Chase and GMAC Mortgage. The Associated Press reported Friday that Stewart Title Guaranty Co. has issued guidelines to agents that include restrictions on insuring title for properties foreclosed on by JP Morgan Chase, Bank of America, OneWest Bank and GMAC Mortgage.
In arguing against a foreclosure moratorium, Peter Swire, an Ohio State University law professor who until August was a special assistant to President Obama for economic policy, said senior corporate officers at banks should instead personally certify that they have checked their internal foreclosure processes.

The scope of such certifications could vary, based on the what the senior bank official can actually promise, Swire said.

The Mortgage Electronic Registration Systems, or MERS, saved financial firms hundreds of millions of dollars by reducing paperwork involved with reassigning loans, the Washington Post reports. "If you read nothing else," Pfotenhauer advised, "check out MERS's response to speculation about their role in the foreclosure process."

Nancy Pelosi Pushes For Forclosure Fraud Investigation

2010-10-07T12:55:00.003-07:00

House Speaker Nancy Pelosi and the other California Democrats are calling for an investigation into the foreclosure fraud scandal that has forced the nation's biggest banks to halt foreclosures in 23 states.

Bank of America, JPMorgan Chase, and Ally Financial (formerly known as GMAC) halted foreclosures in 23 states after employees admitted in sworn depositions that they didn't verify information in thousands of foreclosure documents. Their use of false affidavits to prove they have the right to foreclose is an eerie reminder of the predatory lending and “liar’s loans” that created the housing bubble and bust to begin with.

Menendez and Sen. Al Franken (D-Minn.) asked the Government Accountability Office to investigate as well, and Sen. Jeff Merkley (D-Ore.) sent a similar request to Treasury Secretary Tim Geithner and Housing and Urban Development Secretary Shaun Donovan on Monday.

"Robo-signing" Controversy Continues

2010-10-04T13:31:00.001-07:00

The "robo-signing" controversy over lenders' allegedly lax foreclosure procedures is picking up momentum, with the Office of Comptroller of the Currency ordering the nation's largest lenders to review their foreclosure processes.

Attorneys general in California, Florida, Colorado, Ohio, Illinois, Iowa, North Carolina and Connecticut are also looking into lenders' foreclosure procedures. Connecticut Attorney General Richard Blumenthal today asked the state's Judicial Department to freeze all home foreclosures for 60 days.

GMAC Mortgage and JP Morgan Chase have already halted foreclosure proceedings in 23 states, following allegations that workers the companies employed failed to follow the proper legal procedures in filing paperwork related to judicial foreclosure proceedings.

While lawyers representing homeowners in foreclosure proceedings have challenged lenders on such grounds before, they have mostly succeeded only in delaying, not stopping, foreclosure proceedings. The "robo-signing" controversy could slow the foreclosure process for thousands of homeowners, which some analysts say might help stabilize prices in distressed markets.

The Times reported that Old Republic National Title has instructed agents not to issue title insurance policies on properties foreclosed on by GMAC Mortgage (A spokeswoman for Old Republic told Inman News the company has a "policy of not speaking to the press.")

Is it safe to buy a foreclosed home now? Foreclosure laws vary from state to state, so it is difficult to make a blanket statement on issues involved with purchasing foreclosed and REO homes, the spokesman said.

In a statement, the American Land Title Association said flaws in documentation filed in the foreclosure process should ultimately have little adverse impact on new owners of REO properties, or on title insurance claims.

"If a new homeowner’s title is challenged because of a faulty foreclosure, the title insurer may have an obligation to defend the challenge," said Kurt Pfotenhauer, chief executive officer of ALTA. Laws vary from state to state, but homeowners who have purchased properties that have been through foreclosure have "numerous defenses available to assure their continued ownership," ALTA said.

The alleged deficiency in the foreclosure process may not have harmed the previous owner, for example. Mortgage financiers Fannie Mae and Freddie Mac employ loan servicers who are handling hundreds of thousands of delinquent mortgages, and both companies have large inventories of REO properties they are trying to dispose of.

Their regulator, the Federal Housing Finance Agency (FHFA), issued a statement today acknowledging that accounts of problems with GMAC Mortgage and Chase's handling of foreclosures "raise concerns for homeowners and mortgage investors alike."

FHFA said it supports efforts by Fannie and Freddie to remind loan servicers to process foreclosures "in accordance with their seller-servicer agreements and applicable laws and regulations." Terry Edwards, Fannie Mae executive vice president for foreclosure process compliance, said in a statement that the company is disturbed by reports of servicers failing to follow proper procedures in the administration of foreclosure cases.

It's a Great Time to Buy!

2010-09-18T15:38:00.001-07:00

A survey by Fannie Mae shows seven out of 10 Americans now agree with half of the proposition put forward by the National Association of Realtors in a notorious 2006 advertising campaign -- that "It's a great time to buy or sell a home."
Seventy percent of Americans polled in June and July think it is a great time to buy a house, compared with 64 percent in a similar survey conducted in January 2010. But 83 percent believe it's a bad time to sell, Fannie Mae said. And while 78 percent believed that home prices will either remain flat or go up in the next year -- up five points from January -- the number of Americans who think housing is a safe investment has fallen from 83 percent in 2003 to 67 percent today.
The number of respondents saying they would be more likely to rent their next home if they were to move increased from 30 percent in January to 33 percent in the latest survey.

"Although most Americans believe that home prices have bottomed, they are adopting a much more cautious approach toward buying," said Fannie Mae Chief Economist Doug Duncan in a press release. "Homeowners and renters alike continue to be wary of taking on risk, and they are less confident in the long-term outlook for housing."
People with mortgages (74 percent) and even underwater borrowers (69 percent) were more likely to say owning a home is a safe investment than delinquent borrowers (57 percent) and renters (54 percent).

History Suggests That Recoveries from Debt-fueled Financial Bubbles are Bound to be Slow

2010-09-15T18:15:00.001-07:00

If your waiting for the market to return before you sell your home then you may be in for a long wait, we are still in a declining market and have not seen the end of the tunnel yet! Consider getting out now while interest rates are still at record low for buyers. Not ready to sell, have you considered renting?

"With uncertainty hovering over the economy like a gray cloud, we don't visualize a return to trend growth to approach 3 percent or so until late 2011," said David Shulman, a senior economist with the UCLA Anderson Forecast.
"In this environment, the unemployment rate will remain extraordinarily high, ending this year at 9.7 percent and 2011 at 9.5 percent."

That's about where unemployment is now -- 9.6 percent was the official rate reported for August.

The UCLA Anderson Forecast anticipates that housing starts, which plummeted from a peak of 2.07 million in 2005 to 554,000 last year, will total only 606,000 this year and 815,000 next year. It will be 2012 before housing starts break through the 1 million mark again, the forecast predicts, when they are expected to reach 1.2 million.

Agent Responsibilities

2010-09-13T09:54:00.001-07:00

Want To Sell Your Condo But Your Association Isn't FHA Approved?

2010-09-12T18:41:00.001-07:00

Have you recently read about FHA providing a lifeline to new Manhattan luxury condominiums after sales stalled? The Federal Housing Administration agreed in March to insure mortgages for apartments at the 98-unit Gramercy Park development and several other developments. This enables buyers to make a down payment of as little as 3.5 percent in a building where apartments are listed at $820,000 to $3 million.

Buildings featuring pet spas, concierges and rooftop lounges are applying for agency backing to unlock bank financing for purchasers. Developments where sales began more than two years ago had 10 units go into contract with FHA backing since approval in March.

It’s no secret. If a buyer has to put down 5-10-20% on a condo there are going to be less buyers than just putting 3.5% down to purchase a home.

Not sure if your building will qualify for FHA and you want to make your building more MARKETABLE? Smart Property is partnered up with a lender that has an internal department that takes care of all the paperwork to see if the development is eligible for FHA approval. Sohail and his lender are experts in FHA Condos and want to help you take advantage of this service to make your unit more marketable.

Buying foreclosures that need, 203K will pay for it!

2010-09-11T12:08:00.001-07:00

Yesterday we started talking about a 203K. Most experts are estimating that $473.4 billion in loans that will eventually need to be liquidated corresponds to approximately 1.75 million individual properties. This number represents almost 50% of the existing homes available for sale as of December 2009, and moreover, only accounts for expected defaults for mortgages outstanding in the private securitization market which makes up less than a third of the total securitization market and less than 5% of the total mortgage market. Foreclosures are "as is" properties. There are a lot of opportunities!

Now think of yourself as an asset manager of the bank and all the properties they have in inventory that you have never seen or don’t know what condition the property will be in due to theft, winterizing of the utilities, etc. Most of these asset managers are going to only accept a 203K borrower or a cash buyers because they have already lost money on the property. They want to get the maximum dollar and they want to make sure the deal will CLOSE. In comes a 203K – no certificate of occupancy is needed and the property is sold AS IS with just 3.5% down including the repairs.

What does the 203K loan program cover?
•Remodeling bathrooms or a kitchen
•Replacing a roof, gutters, and downspouts
•Adding a family room, bedrooms, or bathrooms
•Replacing flooring, tiling, or carpeting
•Completing a basement or attic conversion or adding a second story
•Expanding or building a garage or carport
•Renovating a deteriorating property, such as repairing a chimney, termite damage, or structural problems
•Upgrading plumbing, heating, air conditioning, or electrical wiring
•Eliminating health and safety hazards, such as removing lead-based paint or mold
•Installing a well or a septic system
•Adding a porch, deck, or patio
•Adding or repairing siding or repainting
•Installing energy efficient windows or doors
•Purchasing appliances like washer, dryer, microwave, stove

The list is endless – the only thing it doesn’t cover is putting in a hot tub in the back yard or a built in swimming pool..

Not sure you qualify for the 203K loan? Smart Property is partnered up with a lender that wrote the State of Illinois course for 203K and covers 7 states! Sohail and his lender are experts in 203K and want to help you take advantage of this unprecedented time in history to buy Call Sohail Salahuddin at 312-437-7799 or send your email questions to Sohail@smartpropertyusa.com.

Even the Playing Field With Investors to Buy Foreclosures

2010-09-09T13:21:00.001-07:00

Ever heard of a 203K? Well it is the “IT” product for the next 5 years. It’s an FHA loan that allows you to not only refinance your existing home and get some necessary repairs or improvements done, but will also let you purchase a home and get the cost of the improvements all in one loan! And you can do virtually ANYTHING to the home accept put in a built in swimming pool in the backyard or a hot tub. You can even tear the home down to the foundation, build on it and start all over. And best of all with FHA 30 year fixed rates below 5.00% it is the only ASSUMABLE MORTGAGE PRODUCT IN THE INDUSTRY. Get a LOW interest rate loan and fix the property up – and sell it down the way – the buyer can assume the mortgage. Think about how marketable that will be as the rates start climbing again when you are selling a below 5.00% property!

Let’s say you want to buy a home at these ridiculously low prices. If you are purchasing a home that needs major or minor repairs, it can be a difficult proposition because most banks won't lend the buyer the money to purchase the home until all the repairs have been completed. Also, you can't repair a home that you don't own. Thus, FHA created the 203K loan program to alleviate these problems by facilitating the lending of the funds needed to buy the home before it is repaired. You actually close on the home and over the course of up to 6 months you can draw repair money from the loan to have the necessary work done.

What can program mean to you?

More money to work with. The amount you can borrow is based on the expected increased value of your home, after improvements are made.
Less Strain on Your Budget. You can pay for your renovation gradually and affordably, over the loan term of your mortgage and if you are buying you only put 3.5% down.
Less to Pay at Tax Time. Unlike other credit options, the interest you pay on funds used for a renovation is tax deductible since it is mortgage interest.
Less Hassle. You'll have one loan to apply for, one set of fees, one closing to attend, and one monthly payment to make.
Lower Payment. If you own a home you can use the 203K on your existing home. In many cases if you are refinancing with today’s lower interest rate, with your improvements your payment might actually go down or stay the same even with borrowing more money.

Want to hear more? Smart Property is partnered up with a lender that wrote the State of Illinois course for 203K and covers 7 states! Call Sohail Salahuddin at 312-437-7799 or send your email questions to Sohail@smartpropertyusa.com. Sohail and his lender are experts in 203K and want to help you take advantage of this unprecdented time in history to buy.

REAL ESTATE AFFORDIBILITY NEAR RECORD LOW!

2010-09-08T18:13:00.001-07:00

The share of homes that families making the national median income could afford to buy remained above 70 percent for the sixth quarter in a row, according to the latest National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI). Nationally, the HOI was at 72.3 percent in the second quarter, unchanged from the same time period last year and close to the index's record-high 72.5 percent, set in first-quarter 2009. The HOI tracks the share of homes sold in a particular area that would have been affordable to a family earning the local median income. The index assumes a family can afford to spend 28 percent of its gross monthly income on housing, according to NAHB's website.

Annual median family income estimates by metropolitan area come from the Department of Housing and Urban Development. The median home price nationwide was $179,000 in the second quarter of this year, up from $177,000 in 2009's second quarter. The weighted interest rate was slightly higher, 5.11 percent, in the second quarter compared with 5.03 at the same time in 2009. The national median income was $64,400. The index covered 225 metro areas. NAHB attributed the continuing high level of affordability to favorable interest rates and low home prices.

"Homeownership is within reach of more households than it has been for almost a generation," said Bob Jones, the building association's chairman, in a statement.

"Interest rates continue to hover at historic low levels, the economy is beginning to rebound, and with house prices starting to stabilize, conditions are beginning to draw homebuyers back into the market, which is a positive step on the path to recovery."

Three Rust Belt states featured prominently among the top 10 most affordable metro areas: Ohio, Michigan and Indiana. Syracuse, N.Y., was the most affordable metro area in the country, where households with the area's median family income of $64,300 could afford a whopping 97.2 percent of homes sold.

That metro area pushed Indianapolis-Carmel, Ind., which had held the top spot for nearly five years, to the 14th most affordable metro area. Syracuse had a median sales price of $88,000 in the second quarter, compared with $179,000 nationwide, according to the NAHB.

Don't Believe Everything You Read

2010-09-03T11:34:00.001-07:00

There are a slew of emails floating around out there that seem to be meant to scare people into believing that the new health care bill will greatly increase taxes for those selling their homes. In the event you have not yet been on the receiving end of such emails, it reads like this:

“Under the new health care bill - Did you know that all Real Estate transactions are subject toa 3.8% "Sales Tax"? You can thank Nancy, Harry & Barack (and your local Congressman) for this one. If you sell your $400,000 home, this will be a $15,200 tax. Higher taxes on real estate investments. The 3.8% Medicare surtax would hit average, middle-class investors in real estate. A middle-class taxpayer who happens to sell real estate for a gain in a particular year would be liable for this new tax, regardless of how low her income might be in other, more typical years.”

Despite what the email says, it’s simply not true. According to the National Association of Realtors, the new law does not at all impact average home sellers, just a handful of those in the very top income bracket.

FactCheck.org, a non-partisan website breaks it down a little further: “The truth is that only a tiny percentage of home sellers will pay the tax. First of all, only those with incomes over $200,000 a year ($250,000 for married couples filing jointly) will be subject to it. And even for those who have such high incomes, the tax still won’t apply to the first $250,000 on profits from the sale of a personal residence — or to the first $500,000 in the case of a married couple selling their home.”

According to the National Association of Realtors, half of all existing homes sold for $170,700 or less in March of this year. Obviously, none of those sales could possibly generate a $250,000 profit and so none would be subject to the tax. Bottom line, for the vast majority of people, a typical home sale would not incur any tax and the 3.8 percent tax will not apply.

If you need further reassurance of who would have to pay the tax, here’s another summary from FactCheck.org:

A single executive making $210,000 a year who sells his $300,000 ski condo for a $50,000 profit. His tax on the sale of that vacation home would amount to $1,900, in addition to the capital gains tax he would have paid anyway.
An "empty nester" couple with combined income of over $250,000 a year who sell their $1 million primary residence to move to smaller quarters. If they cleared $600,000 on the sale, they would be taxed on $100,000 of the profit (the amount over the half-million-dollar exclusion). Their health care tax on the sale would amount to $3,800 over and above the usual capital gains levy.

There you have it. Next time such an email lands in your inbox, before pushing that forward button and passing along misinformation, take a minute to look into what it says. You might just find it more valuable to click delete instead.

Mortgage Modification Failures! By Sohail A. Salahuddin

2010-08-30T19:11:00.000-07:00

More failures for loan modifications hit our market. The Banks still don't get it, which most of us don't get. What makes sense to us doesn't make sense to them, or so it seems. Most us understand that the banks that don't do a loan modification for a home owner have to file suit for foreclosure which cost them legal fees and in today's foreclosure world this is very costly and time consuming for the banks. Now, once they are successful with the foreclosure they have to then get the house back on the market and who knows when it will sell. If the property does sell, it's going to be for a minimum price. What makes sense to most people is that if the banks modify the loan, the home owner can stay in the house, pay the bank some money still, the bank will have a loan out there still collecting some interest and it seems to all workout in the end. Here's the kicker and what most people don't realize in less they are in the business is that an individual with home financing has front end ratio's (housing ratios) and back end ratios (total debt to income ratio). What the banks look at are all the other bills that come into effect such as the revolving debt from credit cards which on average have the home owner at a back end ratio of over 60%.... WHICH IS A SLAM DUNK FOR FORECLOSURE! Maybe the banks aren't so dumb and they really see the inevitable. Here is my suggestion, stay away from loan modification companies and work diligently with your bank to stay in your home. If that doesn't work out, you do have other options such as short sale, consent foreclosure, your one time right of reinstatement. There are many options to avoid foreclosures.... speak to a real estate professional who has the knowledge to guide you in the right direction.

www.smartpropertyusa.com

sohail@smartpropertyusa.com

Chicago Real Estate Still Has Years to Recover!

2010-08-27T19:41:00.000-07:00

Chicago housing market won't recover until 2013. It is predicted that existing home sales will reach 95,000 a year by 2013. During the peak of the housing boom, that figure was over 50,000 higher. If we assume that the 95,000 figure is based on more sensible lending practices, it would seem to be a sustainable recovery if it happens.

One of the more disturbing quotes from the article is, "Chicago homeowners will have to get used to a new reality, where selling a house routinely takes six months or more and home appreciation just barely outpaces inflation." This indicates that real estate may not be the way to invest money for the long-term. When I was growing up, my father, a high school teacher "lucky" enough to teach a section of consumer economics, always told me, "Everyone should buy a home. You save your 20% down, you find one that won't have a mortgage payment greater than 40% of your monthly income, and you begin to build equity."

This is clearly not the case as it is projected that home values in Chicago will drop 5.7% by the third quarter of this year. Moreover, the price of a home in Chicago compared to income is upside down. The median home price was 3.3 times that of the median income in the third quarter of 2009. On average, from 1980-2000, this figure was 2.6. If the market takes a long time to rebound, we may see the City of Big Shoulders become the City of Big Rentals.

As we get into the underwater mortgage foreclosure wave, we may see housing values decrease even further. According to Crain's, 21% of mortgages in Chicago are underwater. As those homes go to foreclosure, we can expect them to further devalue housing. Since most people don't fight their foreclosures, we can further expect that the market will be flooded with judicial sale properties as well as even more REOs.

This may seem like a buyer's market, but since banks aren't lending as freely as they once did, the decreased cost of a home will not do much to drive purchases.

Mortgage Rates At 9 Week Record Low!

2010-08-21T03:44:00.000-07:00

Mortgage rates on a fixed-rate mortgage tracked by Freddie Mac hit new lows this week, with 30 year fixed-rate loans averaging 4.42 percent. This is down from 4.44 percent the previous week and down almost 3/4 a percent a year ago.

"Investors in long-term bonds appear very confident that inflation will remain in check, and as a result long term fixed mortgage rates have continued flat", said Amy Crews Cutts, Freddie Mac's deputy cheif economist.

Rates on a 15 year fixed-rate mortgage aveaged 3.9 percent, down from the previous week. This was a low dating back since 1991.

Rates on 5 year Treasury Inexed hybrid adjustable-rate mortgage (ARM) loans averaged 3.56 percent, down a full percent point from the previous year.

Rates have been dropping for 9 straight weeks to record lows, with no forecast for upward change anytime soon.

How Do You Pick The Right Agent To Sell or Rent Your Property?

2010-08-16T04:39:00.000-07:00

With so many real estates agent who have come and gone in the past decade as well as a giant shift in the market who do you choose to represent you in the sale or lease of your home and how do you choose the right agent for the job? It can be a tough choice and you will need to choose wisely.

You have so many real estate companies and agents to choose from and you will need to be aware of a few important things you will need to know when choosing. The first and most important choice should how hungry, motivated and aggressive the agent is when selling or leasing homes. You don't want an agent who practiced the three Ps: Put up sign, Put in MLS, and then Pray! I see this far too often and it's not selling, it's wishful thinking. You need an agent who will create a specific marketing strategy for your home as well as a target market. You need to pick an agent who has the time for you property. This means they have the time to show it, review their marketing, review the activity, follow up with prospects, networks with other agents in the area, open houses, time to take a close look at the property and give you ideas such as arrangement of furniture, landscape ideas to add curb appeal, and much more. What you don't want is an agent who is sitting on a ton of listings and wants to add yours to his or her list of properties they are listing. You need an agent who can put 110% into your property and focusing on finding a buyer and selling it. Make sure you ask the agents you interview what their marketing plan to sell your property is.

It's very important that you realize that the company you choose doesn't make a difference, the agent is what's important. As long as you choose a good agent, it doesn't matter is you choose a nationally recognized firm or a small local boutique firm. The most important deciding factor should be the agent you choose no matter the company is. I will tell you that I personally know agents who work for firms that no one has ever heard of however these agents are some of the best in the business.

If you are going to lease your property, find an agent who has different strategies to market your property: internet, signage, flyers, media, etc. In today's leasing market, a good agent will have no problem use a non-exclusive listing agreement which gives you the freedom to try and lease the property yourself or use other companies as well. You will not be locked into any agreement that you can't get out of. A confident agent won't mind who else you list it with since they know who and how to market yout property. Make sure that the agent is licensed and double check with the Illinois Department of Financial and Professional Regulations that their license is active.

Remember these important tips and choose wisely. Take your time and interview each prospective agent. You can even ask for a list of testomonials and referrences.

Rent vs. Own Shift

2010-08-14T04:40:00.000-07:00

There has always been the debate of rent vs own, should I buy now or should I continue to rent? There is definitely benefit to home ownership such as tax benefits, you own the home and don't have to worrry about moving or renewing a lease, and in the past there was home appreciation (not a current benefit in these times). If you own your home you could make any improvements that you want, or make changes without any concern since your the owner.

If you are renting, you cannot make any changes to the property without permission and I don't see why you would want to pay for any improvements yourself to someone elses property. Every year or two you would have to renew your lease or prepare for a move. The great thing about renting is that you don't have to worry about any real estate taxes, association dues, etc... you are only responsible for paying your rent which is less stressful and majority of the time a less expensive monthly payment. You are also not responsible for any issues with the property. For example, if an appliance breaks the owner will be responsible for repairing it.

So, should you rent or own? In todays market it is a great time to buy with interest rates the lowest they have been in fifty years. The price of homes are at a low, and there are so many great bargains out there that it's the deal of the century. So why not buy? The decision should be made depending on how long you live there. If you plan on moving within the next five years then you may want to consider renting. The first five years of your mortgage payment is almost all interest and there would be no real benefit if you plan on moving in a short time, so renting may make the most sense. If you are planning on staying for a while, five years or more then it's time to buy!

Now, consider your options and speak to a Realtor who knowledgeable in both home ownership and leasing real estate. They should also have knowledge on the current home finance industry, rates, programs, or have someone on their team who does so they can guide you to make the right decision for you.

Nationwide Foreclosures Up 6% Over Last Year

2010-08-12T07:48:00.000-07:00

The number of U.S. homes lost to foreclosure surged in July, another sign lenders are moving quicker to take back properties from homeowners behind in payments. Lenders repossessed 92,858 properties last month, up 9 percent from June and an increase of 6 percent from July 2009, foreclosure listing firm RealtyTrac Inc. said Thursday. Banks have stepped up repossessions this year to clear out the backlog of bad loans. July makes the eighth month in a row that the pace of homes lost to foreclosure has increased on an annual basis.

Meanwhile, homeowners who are falling behind on their payments are being allowed to stay in their homes longer because lenders are reluctant to add to the glut of foreclosed homes on the market. The number of properties receiving an initial default notice – the first step in the foreclosure process – rose 1 percent last month from June, but tumbled 28 percent versus July last year, RealtyTrac said. Initial defaults have fallen on an annual basis the past six months.

The latest data reflect a foreclosure crisis that continues to drag on as many homeowners struggle to make their monthly payments amid high unemployment, slow job growth and an uneven rebound in home prices.
Economic woes, such as unemployment or reduced income, are now the main catalysts for foreclosures. Initially, lax lending standards were the culprit, but homeowners with good credit who took out conventional, fixed-rate loans are now the fastest growing group of foreclosures. Lenders are offering a variety of programs to help homeowners modify their loans, but their success rates vary. Hundreds of thousands of homeowners can't qualify or fall back into default.

The Obama administration has rolled out numerous attempts to tackle the foreclosure crisis but has made only a small dent in the problem. More than 40 percent, or about 530,000 homeowners, have fallen out of the administration's main effort to assist those facing foreclosure. That program, known as Making Home Affordable, has provided permanent help to about 390,000 homeowners, or 30 percent of the 1.3 million who have enrolled since March 2009. Still, RealtyTrac estimates more than 1 million American households are likely to lose their homes to foreclosure this year.

In all, 325,229 properties received a foreclosure-related warning in July, up 4 percent from June, but down 10 percent from the same month last year, RealtyTrac said. That translates to one in 397 U.S. homes. The firm tracks notices for defaults, scheduled home auctions and home repossessions – warnings that can lead up to a home eventually being lost to foreclosure. Among states, Nevada posted the highest foreclosure rate in July, with one in every 82 households receiving a foreclosure notice. The number of properties in Nevada receiving a foreclosure warning last month rose nearly 7 percent from June, but fell nearly 30 percent from the same month last year. Rounding out the top 10 states with the highest foreclosure rate last month were: Arizona, Florida, California, Idaho, Michigan, Utah, Illinois, Georgia and Maryland. Las Vegas continued to be the city with the highest foreclosure rate in the U.S., with one in every 71 homes receiving a foreclosure notice in July – more than five times the national average.

Wells Fargo Must Return Overdraft Fees

2010-08-12T07:28:00.000-07:00

A federal judge in California ordered Wells Fargo & Co. to change what he called "unfair and deceptive business practices" that led customers into paying multiple overdraft fees, and to pay $203 million back to customers.

In a decision handed down late Tuesday, U.S. District Judge William Alsup accused Wells Fargo of "profiteering" by changing its policies to process checks, debit card transactions and bill payments from the highest dollar amount to the lowest, rather than in the order the transactions took place. That helped drain customer bank accounts faster and drive up overdraft fees, a policy Alsup referred to as "gouging and profiteering."

The ruling detailed the experiences of two Wells Fargo customers who used their debit cards for multiple small purchases, and were then charged hundreds in overdraft fees because the order the purchases were cleared by the bank depended on the amounts. The judge found the customers, who were part of a class action, were not properly informed of the bank's policies on processing payments and were unaware the bank would allow debit purchases to go through when their accounts were overdrawn.

"Internal bank memos and e-mails leave no doubt that, overdraft revenue being a big profit center, the bank's dominant, indeed sole, motive was to maximize the number of overdrafts," Alsup wrote. That policy would "squeeze as much as possible" from customers with overdrafts, in particular from the 4 percent of customers who paid what he called "a whopping 40 percent of its total overdraft and returned-item revenue."

The judge dismissed Wells Fargo's arguments that customers wanted and benefited from the policies, and detailed evidence he said showed efforts to obscure the practices in statements and other materials. Wells Fargo's online banking system, for example, would display pending purchases in chronological order, "leading customers to believe that the processing would take place in that order."

"The supposed net benefit of high-to-low resequencing is utterly speculative," he wrote. "Its bone-crushing multiplication of additional overdraft penalties, however, is categorically assured."

Alsup also criticized the bank for allowing overdraft purchases after accounts had been drained by offering a "shadow line of credit" that customers were unaware existed.
The decision noted that the Federal Reserve has outlawed some of the practices detailed in the case, most notably debit card overdrafts permitted without customers agreeing to accept overdraft protection.

Judge Alsup ordered Wells Fargo to stop posting transactions in high-to-low order by Nov. 30 and to reverse overdraft fees charged to customers from Nov. 15, 2004, to June 30, 2008, as a result of the policy. A study cited in the decision by a Wells Fargo witness put the restitution at "close to $203 million."

Wells Fargo spokeswoman Rochele Messick said the bank is "disappointed" with the ruling. "We don't believe the ruling is in line with the facts of this case and we plan to appeal," she said.

Messick noted that Wells Fargo changed its policies earlier this year, and customers can no longer incur more than four overdraft charges in one day.

Wells Fargo shares closed Wednesday trading down $1.47, or 5.3 percent, at $26.30, as the broader markets dropped sharply on economic concerns, with banks being particularly hard hit.

The case, heard in the U.S. District Court for Northern California, is Gutierrez vs. Wells Fargo.

WHY CAN'T I GET FINANCED TO BUY A HOME?

2010-08-10T19:13:00.000-07:00

Do you want to buy a home however you are having problems getting financed? Well, here are the top reasons you may not be able to be approved for home financing:

Poor Credit: Even if you have a large down payment and great income, if your credit is not up to par with the banks current lending standards you will have a problem getting financed. Even FHA loans, which cater to borrowers with a lower credit score, has increased its FICO score standards bringing the average credit score of todays home buyer to 693

Insufficient Liquidity: If you don't have a heavy down payment (20% to 30%) and a strong excess in liquidity the banks don't want to take the risk of funding your loan. Even minimum down payments of 3.5% (FHA) loans still require you to have six months of reserves in liquid assets to offset the risk.

Lack of Inome: If you can't afford it with room for all of your other bills then you can't buy it. In todays market, you will need consistent income for the past two years.

Debt: If you have too much debt then you cannot qualify for more debt from the banks to finance your home purchase. Your debt to credit ratios have to pass the banks qualifying guidelines

Self Employment: Thse of you who are self employed, pay attention because your gross adjusted income will determine what you can afford and can't afford. This means that the more deductions you take the less money you show that you net, the less you have to spend on your home.

With the strict current lending guidelines these days private lending seems to be the future for securing real estate funding.

Ben Bernanke Says Current Lending Guidelines Too Strict!

2010-08-08T17:42:00.000-07:00

Finally, it's about time that someone with authority admits that it is becoming very hard for individuals to get home financing, causing more home owners to go into foreclosure. Fed chairman Ben Bernanke announced that lending guidelines are too strict! Well, we all new that right? You did if you could not get financed to purchase a home in the last two years for reasons that you could not believe. An example, an individual looking searching for homes finally finds a great home in which the home owner is in trouble and needs to sell. The individual puts in an offer and the home owner agrees, both are very happy. The buyer goes to get home financing and everything looks good, 780 credit score, good income, etc. Now, during the process he goes and purchases a few small pieces of furniture with his credit card for the new home.... you know, planning. Now the bank puts a big stop on everything!! The buyers borrowed credit/debt has increased and they don't like it. The deal is killed and the process has to start all over again, however this is too late for the seller. His bank hears the news and moves forward with the foreclosure. Another property foreclosed on and another buyer who can't believe the bank did that. This is just one example and it happens everyday, the lending guidelines are so strict that they start to not make any logic sense at all. Not to mention, the guidelines are becoming stricter every month. The more foreclosures, the tighter the guidelines become. The tighter the guidelines become, the more foreclosures. Aren't we working backwords? Hopefully we will see some new and positive light shined on our current real estate industry in the next few months so more people can get loand and buy homes, which means more sellers can actually sell their homes to buyers needing financing.

Fannie Mae Releases New Website To Help Troubled Home Owners

2010-08-06T20:10:00.000-07:00

Fannie Mae has just launched a great new website to assist home owners who have financial difficulty with their homes. The new website, http://www.knowyouroptions.com/ is an easy to use site that provides individuals with options regarding their home and a decision they will have to make if they are in financial difficutly. The site is a great source especially when there are tons of loan modification companies trying to provide you with advise which may be incorrect for your situation. The site is interactive and very easy to use. There is also a resoures page, advise from other homeowners and more.

Well known for sale by owner firm files for liquidation

2010-08-02T19:21:00.000-07:00

Florida-based company that helped for-sale-by-owners market their properties around the country has reportedly filed for liquidation.
Buy Owner of South Florida Inc., which does business as Buy Owner, has turned over its assets to Michael Moecker & Associates, an auction firm that liquidates insolvent companies, DailyBusinessReview.com reported.

The auction firm says that it will continue operating the BuyOwner.com website and provide services to consume in order to pay off creditors.

The Deerfield Beach-based company does business in 10 markets, including Miami, Chicago, Dallas and Atlanta, Daily Business Review reported.

By Owner was established in 1984 and claims to be the first "by owner" company to provide nationwide radio, television, and magazine publications.
Buy Owner promises to provide exposure for clients' properties through an "ultra-aggressive advertising campaign" that includes highway billboards, television commercials and Internet advertising. The majority of the home sellers who use Buyowner end up using a Realtor to sell their home and end up wasting time and money.

Buy Owner operates corporate offices and authorizes franchises, which it says distinguish the company from networks of "real estate agents just trying to make some extra money by associating themselves with a 'by owner' name."

Buy Owner and 18 affiliates filed an assignment for the benefit of creditors, or ABC filing, on July 26 in the Broward County 17th Judicial Circuit of Florida, DailyBusinessReview.com reported. An ABC liquidation is an alternative to filing for bankruptcy in federal court.

Buy Owner reportedly settled a class-action lawsuit last year that required it to pay refunds to many clients who were clients between 2002-08. The lawsuit alleged that Buy Owner hadn't allowed clients to cancel contracts, the story said.

Buy Owner reportedly owes more than $3.9 million to its only secured creditor, and $1.2 million in back wages to executives.

CEO Scott A. Eckert and other members of the Eckert family involved in running the company resigned on July 23, the publication reported.

The Wall May be Cracking - Bank America to Reduce Mortgage Principal

2010-03-24T17:35:00.000-07:00

Bank of America under pressure to keep distressed borrowers from losing their homes, said Wednesday that it would begin forgiving some of their mortgage debt. While limited in scope and by invitation-only, the program is a significant shift in efforts to assist the four million homeowners who are facing foreclosure.

It comes as banks and the Treasury Department are under growing pressure from the Obama administration, lawmakers and community groups to stem the foreclosure tide.

With the housing market entering another period of stress, worries about foreclosure are compounded. As the volume of sales drops, prices start to slide as well. When the gap keeps increasing between the size of a mortgage and the value that the home could fetch from a buyer, owners tend to give up.

“Banks are willing to take some losses now to avoid much greater losses later if the housing market continues to spiral, and that’s a sea change from where they were a year ago,” said Howard Glaser, a housing consultant in Washington and a former H.U.D. official.

The Bank of America program is intended for owners who received loans from Countrywide, the biggest and one of the most aggressive lenders during the housing boom. Bank of America bought Countrywide in 2008.

Bank of America executives said the program would work this way: A borrower owes $250,000 on a house now worth $200,000. Fifty thousand dollars of that balance would be moved into a special interest-free account.

As long as the owner continued to make payments on the $200,000, every year $10,000 in the special account would be forgiven until either the balance was zero or the housing market recovered and the borrower once again had positive equity.

“The time has come to test this sort of program,” Jack W. Schakett, who heads credit loss mitigation strategies at Bank of America, said in a briefing. “Modifications are better than foreclosure.”

That was the original notion behind the government’s modification program, which was originally touted as helping millions of borrowers but has resulted in permanently improved loans for less than 200,000. The program, which stresses reductions in interest rates, was criticized Wednesday by the special inspector general for the Troubled Asset Relief Program for over-promising and under-delivering.

Mortgage Fraud Continues - Know Who You Are Working With!

2010-03-24T06:36:00.001-07:00

CHICAGO –Officials from the Illinois Department of Financial and Professional Regulation’s (IDFPR) Mortgage Fraud Task Force (MFTF) today announced a series of disciplinary actions, including $769,000 in fines, against 16 licensees—including a title company, 7 mortgage companies, 6 loan originators, and 2 appraisers—plus three unlicensed companies and a number of straw buyers, all of which were involved in an alleged $7.7 million scheme to defraud lenders in a rehabbed 27-unit condominium building located at 4725 S. Michigan Avenue and other properties on Chicago’s South Side. All 27 apartments at 4725 S. Michigan are in foreclosure.

“This is the first time that we have seen a case in which all of the building’s units are in foreclosure,” said Brent E. Adams, IDFPR Secretary. “We believe this case will serve as a dramatic example of the damaging ripple effect that mortgage fraud has on communities by lowering the property values of neighboring homeowners.”

The type of fraud scheme alleged by IDFPR, which puts entire neighborhoods at risk and can net millions of dollars for the perpetrators, involves complicated financial transactions that can be successfully unraveled partially as a result of the 2004 consolidation of all three state agencies with responsibility for overseeing portions of real estate transactions: from listing a property to transferring the property to a new owner. Illinois is one of the few states in the nation that has the capability to conduct investigations into alleged mortgage fraud within one state agency.

Tipped off by a confidential informant, MFTF investigators late last year began to unravel the alleged fraud that resulted in every unit owner in the building being unable or unwilling to keep up their mortgage payments. The alleged scheme involved title agents, mortgage brokers, loan originators, appraisers, unlicensed real estate brokers and straw-buyers who were induced or compensated to participate in the origination of loans using knowingly false information on loan applications.

According to IDFPR’s investigation, most if not all of the units were alleged to have been sold to straw buyers, beginning in late 2006 and continuing through October 2007, at artificially inflated prices based on fraudulent appraisals. The buyers would allegedly sign loan documents stating that the address was going to be their primary residence when, in fact, they had no intention of ever living there. At least one of the alleged straw buyers purchased five units claiming that each unit was her primary residence. Often times, the sellers would allegedly ask the buyers to risk their good credit for generous cash kickbacks or on the promise that a bevy of renters will cover the cost of the mortgage. In the end, the buyers failed to make payments, defaulted on their loans and the lenders began the foreclosure process.

According to the informant, Schaumburg-based Traditional Title Company LLC was the alleged ring leader in the fraud and, two of its principals, Ira Kaufman and Elbert Reniva, both of Chicago, were “outwardly committing fraud” by recruiting investors, mortgage brokers, appraisers and straw buyers. Traditional Title’s title insurance license was revoked by IDFPR’s Division of Financial Institutions and the company was fined $24,000. Traditional Title is contesting IDFPR’s revocation.

In its revocation order, IDFPR said that Traditional Title demonstrated “untrustworthiness” in transacting the business of guaranteeing titles. It alleged that the condo development’s seller hired Kaufman as the attorney of record for 19 transactions in which alleged straw buyers signed purchase agreements for properties they could not reasonably afford. Many of the alleged straw buyers reported inflated incomes from working as employees of E&H Distributors, Inc. IDFPR could not confirm employment and found no evidence that the company was doing business. Some of the alleged straw buyers purchased multiple properties as their primary residence.

In addition to Tradition Title, the MFTF’s investigation also cited and fined several other licensed companies and individuals.
IDFPR’s Division of Banking revoked, fined and/or disciplined the licenses of:
Mortgage Companies

AM Mortgage Corp., Lincolnwood (Revoked license; $100,000 fine)
Atlas Preferred LLC, Chicago (Revoked license; $100,000 fine)
Exclusive Bancorp, Inc, Lincolnwood (Revoked license; hiring unlicensed loan originator Arfeen S. Ahmed; $100,000 fine)
KRK Financial Services, Inc. (dba KRK Mortgage Bancorp, Inc.), Chicago (Revoked license; $100,000 fine)
Elite Financial Investments, Inc., Oak Brook (90-day suspended license; $25,000 fine)
Two other mortgage companies: C.D.K. USA Mortgage in Chicago and Country Mortgage Services, Inc. in Arlington Heights; each were operating on previously revoked licenses. They also were fined $100,000 each.

Loan Originators

Theodore Cardenas of Schaumburg (Revoked license; $20,000 fine)
John Karapournos of Skokie (Revoked license; $20,000 fine)
Razzak Khader of Morton Grove (Revoked license; $20,000 fine)
Zarak Khan of Chicago (Revoked license; $20,000 fine)
Sara Mian of Niles (Revoked license; $20,000 fine)
Jeff Townsend of Glendale Heights (Revoked license; $20,000 fine)
Arfeen S. Ahmed (Cease and desist unlicensed loan origination)

IDFPR’s Division of Professional Regulation also filed formal complaints against the following licensed professionals:
Real Estate Appraisers (complaints seeking revocation, suspension or other disciplinary action)

According to investigators, Muzaffar and Powell allegedly inflated the value of the properties by $50,000-$75,000, failed to select appropriate comparable sales, and failed to accurately reflect certain information necessary for a valid appraisal.

In addition, ENH Services LLC, Zeal Management LLC, and Eliot Higueros were all charged with unlicensed practice as real estate brokers for accepting commissions on the sale of condos at 4725 South Michigan. In multiple instances, ENH and Zeal are alleged to have received commissions of more than $20,000 on the sale of single units.

Due to the nature of the investigation—including possible evidence of criminal fraud—IDFPR has referred this case to the Federal Bureau of Investigation for further review.

The Mortgage Fraud Task Force (MFTF)—which consists of representatives from the Illinois Divisions of Financial Institutions, Banking, and Professional Regulation—was formed four years ago to ensure that businesses and individuals involved in real estate transactions comply with the strict standards of conduct established by state laws. Since its inception, the MFTF has taken disciplinary action against more than 100 persons and entities and assessed fines of almost $2 million and conducted a regulatory sweep of more than 150 mortgage companies.

TAX CREDIT DEADLINE JUST AROUND THE CORNER

2010-03-24T06:18:00.001-07:00

The tax credit deadline is just around the corner, what are you waiting for?

First time home buyers have just over a month to find their first home purchase and receive a $8000.00 tax credit. To qualify as a first time home buyer you must have not owned a home 3 years prior to the purchase. Repeat buyers can still take advantage and receive $6500 tax credit, but they must purchase before April 30, 2010. The credit can be applied to primary residences only, sorry but no investments.

There are limitations, the new law raises the income limits so the full tax credit will only be available to taxpayers with modified adjusted gross incomes up to $125,000 for individual or $225,000 for joint filers. Sorry again, but those with higher incomes will not qualify.

Do you qualify? Contact one of our sales associates to find out how you can take advantage of the tax credit, current low interest rates and discounted home prices. Right now may be the a golden opportunity to buy.

YELP Loses All Credibility - Class Action Lawsuit Filed

2010-02-26T08:07:00.000-08:00

Finally, Yelps extortion tactics are coming back to haunt the company. A national class action lawsuit has been filed against YELP alleging that the company engages in extortion of business by manipulating its viewers' reviews in exchange for advertising dollars from the company's reviewed. Refuse to play the YELP game and bad reviews suddenly appear and good reviews curiously disappear. YELP has lost all credibility and will likely not survive. Read the suit here.

Great Time to Buy in Northshore!

2010-02-20T11:02:00.000-08:00

According to the NorthShore Insider the real estate market in the Northshore area has been suferring. October was the worst month it's had, condo sales and single family home sales were off sharply. According to data from the MLS, a toal of 196 new and resale single-family hoems were sold in the reqion over the last month... a 20% decline in demand from the same period last year. The average sales price of homes has also dropped to $705,523, down from $880,401. The dramatic drop in demand for the most expensive homes in neighborhoods such as Winnetka and Glencoe was the main culprit for the slide in the average sales price.

Condo sales also took a big hit. Accordign to MLS data, only 91 new and resale condos were sold in the previous month, down 24% from the same period last year. The average price plunged to their lowest levels in two years. The average time for turnover in the North Shore has risen to 181 days, up from the previous 94 days.

Buyers haven't returned to the market yet to take advantage of deals in the North Shore neighborhoods yet. Listing prices have plunged in Glencoe and Winnetkam, two exclusive markets in the area. This can possibly be due to the fact that many homeowners are simply waiting for a better market, particularly more wealthy homeowners that aren't facing foreclosure.

Now is a great time to take advantage of the property prices in the North Shore.

Should I Rent or Should I Buy? Smart Property/ Rent Smart Can Guide You.

2010-02-06T07:01:00.000-08:00

In today’s market there is a common question amongst someone looking for a new home, should I rent or should I buy? There are many reasons why you should buy in today’s market and many reasons why you should not buy. For starters, the current trend in home financing is simple… there not many programs available, tough lending guidelines, and a poor economy. Add in the current job market and you will see that for many it may not be the best time to buy a new home. On the other end of the spectrum there are builders, sellers, condo developments, etc., all with inventory which they find difficult to move… the home finance trend is affecting them as well. So what does one do? Lease!

An individual looking to sell can lease his/ her property for a period of time until things turn around and they can sell. Someone looking to move to a larger home or simply downsize can lease for a year or two until things change. However what if a buyer can buy a new home, should they? I would suggest not always. There are times when it makes sense not to buy even if one can. For example, let’s take a family who wants to move to a bigger, newer home. They really can afford the mortgage, but should they really buy now? Perhaps not. You see, if a large down payment is not involved and the individual perhaps doesn’t have the savings, then it may make more sense to rent a newer home for a low monthly rent. Compare the costs of a $600,000 home. A home at this price would cost you a monthly payment of anywhere between $5000 and $6000 per month including your taxes and insurance. Additionally, you must must aside 5-10% for the down payment. Those high monthly payments could be hard on a family when you add all the other monthly expenses. Now, you can rent this same house for half those monthly payments, not have to worry about taxes or home owners insurance and have money left over to save for your down payment when you do buy. You can put your savings into an investment that is gaining interest for a year or more. When it’s time to buy that new home, you can put down 10% to 20% or more and have lower monthly payments, less worries and more room in your pockets for life’s unexpected bumps in the road.

Now, a situation in which you are putting down a large down payment would be a good time to buy a house rather than rent… that is if you have a large sum of money to put down which will result in monthly payments that won’t “break the bank”. Now, if you are looking for a smaller purchase then it’s a good time to move forward and purchase the new condo or home, if you can qualify for a loan. With today’s low rates, many incentives, low cost of real estate along with minimum down payment requirements it may make sense to go straight forward with the purchase.

We are in a new age and keeping up with the housing market takes research. Let us help you to make the right choice, the choice that makes sense for you and your long term goals. Ask you Smart Property/Rent Smart Agent to guide you in making the correct decision.

Fannie Mae Announces 3.5% Buyer Credit

2010-01-30T08:20:00.000-08:00

Fannie Mae owned 72,275 homes as of the end of the third quarter 2009. It wants desperately to move those home out of inventory and into the hands of new homeowners. Like any seller with too much inventory, Fannie Mae is offering new incentives. Until May 1, 2010, buyer's of Fannie Mae owned properties can elect to receive either a 3.5% closing cost credit or 3.5% credit toward the purchase of appliances for the home purchased.

Ask your Rent Smart/Smart Property agent for a complete list of Fannie Mae owned homes in the Chicagoland area.

WARNING - Know Who You Are Working With

2010-01-28T13:33:00.000-08:00

Would you let a stranger into your home? Of course not. Yet, every day well meaning landlords place their property at risk by failing to do their homework before listing their property for rent with an apartment broker. When you list a property and give that person keys or access to your property you are bestowing a great deal of trust in the individual or company. Have you made sure that they are worthy of that trust? Here are some basic questions you should ask:

1. What is the company or individual's experience? Delve deep here. Ask how long they have been in the business, where they have rented properties and how many deals have they closed. Ask for references from prior landlord clients and call them. Is the company and the agent a member of a professional association of realtors?

2. What is the Company's name and how long have they been in the brokerage business? You would be amazed by the number of rental brokers that have emerged over the last year. Its fairly easy for any inexperienced broker to pass and exam, throw an add on Craigslist and starting calling landlord's for listings. Does the company have a real office (as opposed to the trunk of their car or a "virtual" office).

3. Is the Company insured for liability against accidents? Demand liability coverage and ask for a copy of the policy. A reputable broker will take no offense. Consider the fact that it is you that can be named as a defendant if there is an accident at a showing.

4. Is the company properly licensed? Ask to see a copy of the agent's "pocket card". All licensed real estate agents are required to carry a pocket card showing that they are licensed. Check with the Illinois Department of Financial & Professional Regulation to verify the agent's license. Again, no reputable agent will take offense.

5. Is the agent covered by errors and omissions insurance? Ask for a copy of the policy. If they do not carry coverage, do not list your property with that agent. Errors and omissions can offer protection should the agent make a mistake in his representation of you in a leasing transaction. Don't underestimate what the potential liability can be. For example, many landlords are shocked to learn that tenants can recover two times the security deposit amount, plus the deposit, plus attorney's fees for simple errors like failing to properly create a receipt or lease.

Following these simple steps will go a long way toward protecting yourself and your property. If you have questions or concerns ask for additional information from your Rent Smart agent. Rent Smart is a licensed Illinois real estate broker corporation with five locations located throughout Chicago and 150 properly trained and licensed agents. All Rent Smart agents are covered by liability and errors & omission insurance policies.

Cats and Dogs Love Rent Smart

2010-01-27T09:10:00.001-08:00

Cats and dogs love us.

I just wish more Landlords loved cats and dogs.

I have noticed throughout Chicago that the number of dog owners has increased. But, working in the industry, I have noticed how few Landlords allow dogs. Per capita it is more difficult than it should be.

People who rescue animals are especially vulnerable. Without a home that allows pets, cats and dogs cannot be rescued. Helping create a home for human and canine/feline co-habitation is a positive experience that nurtures the soul. It is estimated that around 40% of all dog owners also own at least one cat. I understand that, and look for the pet friendly buildings where ever they are. It becomes a mission.

According to the Mendocino Coast Humane Society, Pet Owners looking for an apartment are best served when they assemble references for their pet(s). Some Landlords even want to meet Fido before signing the lease. So, working with your dog, training him/her not to jump on people, etc. goes a long way to helping us find a nice apartment for you and your extended family.

The Mendocino Coast Humane Society’s Web-site suggests that “a dog or puppy jumping on you is caused only by their excitement and their desire to receive your attention and affection. A dog is down there and you are up there and they want to say ‘Hello’ to you at face level. Every time we accept a dog jumping on us, we reward their behavior. Consistency is the most important part of training a dog.

There are a few different techniques to stop jumping, but the most effective method is for everyone in the family must agree that jumping is unacceptable behavior.

The best technique is to ignore your dogs jumping. If a dog jumps on you, look up and ignore him or her. Be silent and do not respond in any way until after the dog stops. Petting, yelling and talking only reinforces the behavior to jump on you. After the dog stops wait before you look down and respond to the dog. Vary the amount of time you wait before you respond. It may be best to always ignore your dog when you arrive home until it calms down. Carry a cookie next time you will greet your dog. If it does not jump, give it a cookie and praise it for good behavior.

Remember that dogs are not all that dumb. If every time you come home, the dog jumps on you, your ignore it, it stops, you reach down and pet it, you have just taught your dog a new trick. Reinforce good behavior, ignore bad behavior.”

Other methods may also be employed. According to the Mendocino Coast Humane Society’s Web-site, “kneeing the dog, holding its paws and declaring ‘Off’ are other techniques. ‘Kneeing’ is a technique of raising your knee, just as you see your dog approach with a jump. It is not meant to be violent or to hurt, just to rebound the dog. Caution should be used with this technique; your timing must be perfect and you risk possible injury to yourself and your dog. It is also difficult to knee a dog when sitting.

‘Holding the paws’ is a technique of allowing the dog to jump, grasping their paws and holding on. This is combined with lots of enthusiastic and pleasant talk to your dog. Dogs do not like their paws being held and will begin to struggle. The technique is taught that you keep holding on until the dog becomes very unhappy with the exercise. The goal is to convince the dog that jumping is an uncomfortable event. The disadvantage is that you must do this every time your dog jumps on you and this is not always easy when carrying the groceries. Caution should be used with technique; I have seen a professional trainer get bitten very badly by a friendly puppy.

Giving the command ‘Off’ works only as a reminder to a dog that understands the behavior is not acceptable. ‘Off’ means put all four feet on the ground and works better than the command ‘No’. Do not yell, scream; just say ‘Off’ and ignore your dog. Dogs hear you; they are capable of selective hearing like some people.”

By working with your pet(s) and your Rent Smart Agent, the application process will be a smooth one and the pet interview will result in a positive transition which secures the apartment you want.

So, as our Dogs and Cats love us, let us show them some love also. More pet friendly buildings today!

By Chuck Ward

Freddie Mac Announces Two Chicago Area Foreclosure Help Centers

2010-01-27T06:27:00.000-08:00

Today, Freddie Mac, the giant government sponsored 9now owned) enterprise that underwrote billions in residential mortgages, announced that is is opening two Chicago help center to assist local homeowners facing foreclosure. The centers will assist homeowners with the often frustrating process of loan modification. The two groups involved with the Freddie Mac effort are Latin American Community Housing Association located at 1152 N Christiana Avenue and Neighborhood Housing Services of Chicago Inc. located at 1279 N Milwaukee Avenue. The hope of both groups is that their intervention on behalf of homeowners will result in more modifications and allow many more homeowners to survive foreclosure.

And You Thought Your Mortgage Was Under Water!!! Check Out This Loss - $3.5 Billion!

2010-01-26T07:58:00.000-08:00

Three years ago when the real estate market was at its peak, TIshman Speyer and BlackRock Realty put together the nation's largest real estate deal when they packaged a deal to buy Manhattan's largest apartment complex: Stuyvesant Town and Peter Cooper Village. The price tag: $5,400,000,000.00!!!! Another $900,000,000 was required for reserves bringing the total investment to $6.3 billion. Like many who speculated in real estate at the peak, the investor's plans did not turn out as they had planned.

Today, Tishman and BlackRock confirmed that they are handing over the keys to their lenders and walking away. How much did they lose? The property today is valued at $1.9 billion, resulting in a loss in value of $3.5 billion. So, in perspective, the Chicago real estate market isn't so bad after all.

Tweet in Peace. Court Throws Out Lawsuit Against Tenant for Mold Complaint

2010-01-21T19:52:00.000-08:00

The Tweet that was heard round the world will not result in a judgment against the tenant that complained of a moldy apartment. You may recall that the tenant was sued by her landlord after she "tweeted" that her apartment was moldy. Offended, the landlord sued for libel. Today, Cook County Circuit Court Judge Diane J. Larsen dismissed the case with prejudice. The judge decided that the tweet was not libelous because it was too vague.

Tweet in peace.

A Word of Caution to Our Landlords

2010-01-01T09:54:00.000-08:00

In 2009, for the first time, the interest rate prescribed by the City of Chicago for security deposits for leases subject to the Residential Landlord Tenant Ordinance ("RLTO") is less than the rate specified by the Illinois Security Deposit Interest Act ("SDIA"). The SDIA rate is .25% for 2009 leases while the Chicago rate for 2009 leases is only .12%. Why is this important? An argument can be made that the SDIA rate must be paid on all Chicago leases for 2009 for buildings with 25 or more units. Failure to do say may expose the landlord to liability under SDIA. This situation has not been decided by a court as of yet, but is sure to catch some landlords off guard. Consult an attorney experienced in these matters to learn how your particular situation may be affected.

New Interest Rates for Chicago - Time to Update Your Lease

2009-12-31T09:58:00.000-08:00

On December 31, 2009, the City of Chicago announced the security deposit nterest rate for all 2010 leases subject to the Residential Landlord Tenant Ordinance ("RLTO"). The new rate is .073%. It is important that landlords update their lease forms to reflect proper disclosure of the new rate to be in full compliance with RLTO. Failure to comply can expose a landlord to significant liability.

Consult with your own legal counsel to learn more or contact a Rent Smart agent for a reference to an attorney familiar with these matters.

2009-10-28T15:39:00.000-07:00

Eviction suit hits Sudler Sotheby's

By Andrew Schroedter, Oct. 28, 2009

In the latest controversy to befall Sudler Sotheby’s International Realty, a landlord has sued to evict the residential brokerage from its offices in the historic Palmolive Building, saying the firm owes nearly $371,000 in rent. A venture owned by Beverly Hills, Calif., investor Ross Hilton Kemper filed a complaint Monday in Cook County Circuit Court, asking a judge to order Sudler’s parent company, Chicago-based McNair Inc., to surrender its third-floor office in the Art Deco tower, 919 N. Michigan Ave., and pay the past-due rent.

The lawsuit is the latest setback for Sudler, which acquired rival Century 21 Sussex & Reilly in February. The deal boosted Sudler’s marketshare but resulted in broker defections, a lawsuit by a top-ranking Sudler executive and a rent dispute over the former Sussex office in the Roscoe Village neighborhood.

Sudler CEO Sergio Martinucci expressed surprise at the lawsuit, saying the firm pays rent every month.

But he acknowledges that the company has been withholding a portion of its rent each month because he says the landlord, Michigan Avenue Retail LLC, has failed to live up to a promise to increase the size of the Sudler sign on the building, where Sudler leases 9,938 square feet.

“They won’t give us what they promised,” Mr. Martinucci says. Therefore, “we’ve been paying what we feel is our proportionate share of the rent.”

The eviction complaint was filed by Michigan Avenue Retail, which Mr. Kemper owns. A spokesman for venture had no comment. The venture’s attorney, David Saltiel, a partner in the Chicago office of law firm K&L Gates LLP, also declined to comment.

Under a 10-year lease that began in September 2006, the firm’s annual rent is $332,426, or $33.45 per square foot. Sudler has closed offices this year in Hyde Park and Bucktown. The company has four North Side offices, including the one in the Palmolive Building.

While Sudler is seemingly going through a particularly tough amid time the sharp slowdown in residential sales, they are not alone, says Jim Kinney, vice-president of luxury home sales at Chicago-based Baird & Warner Inc.

"Everyone is being affected by the downturn in the market," he says.

Rubloff Is Acquired by Prudential Preferred

2009-09-09T18:03:00.000-07:00

One by one the giants of Chicago's real estate industry are disappearing. Today, Prudential Preferred Real Estate acquired Rubloff Residential combining the two companies to form Prudential Rubloff. What's driving all the consolidation? The economy and the real estate slump have forced the companies to trim costs by combining forces and expanding the volume of transactions processed. This makes the third large acquisition in the last year. First Sussex and Reily was sold and then just last week Koenig & Strey was purchased. Stay tuned. More sales, consolidations and liquidations are likely.

Koenig & Strey Is Sold!!!

2009-09-02T17:37:00.000-07:00

Chicago real estate firm Koenig & Strey has been sold to a firm controlled by Warren Buffett's Bershire Hathaway. Here is a link to the story at Crain's Chicago. This comes after Koenig recently closed numerous Chicago offices after encountering a huge drop in it's sales volume.

Chicago Tribune Declares It's a "Renter's Market"

2009-08-31T17:23:00.000-07:00

Today's business section of the Chicago Tribune declared its a "Renter's Market" in Chicago. Here's a link to the story in case you missed it. "Landlords are lowering rents as they try to fill vacancies and cover their costs." In short, citing research from DePaul University's Institute for Housing Studies, the paper announced that vacancy rates have increased significantly throughout the city putting pressure on the smaller landlord. Rising unemployment is cited as the biggest reason, although the DePaul study also says that the best renters are being lured into the sales market by historically low prices and the government's $8,000 tax credit.

What's a landlord to do? Hire Rent Smart , of course. Our company can make sure that you are on the right side of the statistic's cited by the Tribune. What could be worse than holding a vacant apartment going into the winter months? A single month vacancy let alone several months can wipe out a year's return on a building. Avoid that drastic result by consulting the experts. Rent Smart will give you an honest evaluation of the rental market for your property and will set a price that will bring you the tenant. Results. Nothing else matters and Rent Smart is equipped to deliver. We have five offices staffed with 125+ agents ready to start working for you today. Call us and we will get started.

Get Paid for Your Trash - Chicago Launches New Recycling Program. Will It Work This Time???

2009-08-26T08:51:00.000-07:00

Chicago has struggled in recent years to launch a sustainable recycling program. We can all recall the 'blue bag" program that required residents to buy their own bags in order to recycle. That went nowhere and was then replaced with the "blue bins" that also seem to be largely ignored if they can be found at all. Thus, it's not surprising that the city is making another attempt. This time is just might work. Why? Chicago is going to try a new tactic - paying you by the pound for your recyclables. Yes, that's right, the city proposes paying you for your trash!

Chicago has contracted with RecycleBank to test a recycling program with 10,000 south side households. The program will work like this: for every pound of trash recycled, a household will receive points from RecycleBank which can then be redeemed on the company's web site for gift cards and discount cards at participating retailers. RecycleBank estimates that the value of the points offered to the local community could exceed $500,000 for new business injected back into the local economy from trash. The program launched August 1, 2009 and covers the 5th, 8th and 19th Wards of Chicago which include the Beverly, Beverly West and Mt. Greenwood neighborhoods.

Let's hope this third attempt at recycling in Chicago actually works. The initial prospects look good. If the City can save money by recycling and its residents see a direct benefit too, then the program stands a good chance. For more information about the program, contact RecycleBank or Rent Smart .

Mortgage Lenders Have Your Money - $18 Million in Cook County

2009-08-25T06:02:00.000-07:00

Today it was reported in the Chicago Tribune that Cook County Circuit Court Clerk is holding $18 Million for 1,900 people who have had their homes foreclosed over the past year. How can this be? Well, prior to the real estate bust, when home prices were still stable, homes sometimes sold at foreclosure auctions for more than the amount due to the mortgage lender on the loan. If the homeowner did no step forward in the lawsuit and claim the money, those funds were then turned over to the Cook County Circuit Court for safekeeping. You can search the Clerk's online database at www.chicagotribune.com/default or call 312-603-5030. See the complete Tribune story here: http://www.chicagotribune.com/news/local/chi-englewood-foreclosureaug25,0,1445727.story

A few words to the wise: Never pay anyone to recover money on your behalf. There are plenty of scammers that just want a cut of your money. When you are due money from the state, county or city, ask for help at the place where your money is held. Most are helpful in helping you complete any paperwork required o get your money returned. Check out the State Treasurer's Tips of Dealing With Finding Firms.

Search the State of Illinois' database for unclaimed funds at Cash Dash and follow the online instructions. State Treasurer Giannoulias is holding millions of dollars in unclaimed funds. At the linked site you can search for your name or that of someone you know.

Rents May Be Recovering Downtown

2009-08-24T19:17:00.000-07:00

Downtown apartment rents, occupancies rise

By Alby Gallun, Aug. 24, 2009

(Crain’s) — It’s the worst of times for many real estate investors, but downtown apartment landlords can’t complain about much.

Rents and occupancies at top-tier downtown apartment buildings rose for a second straight quarter, bucking the downward trend of the broader real estate market, which has been battered by the recession and credit crisis. Leery of the lousy condominium market and possibly uncertain about their own economic futures, many downtown residents are choosing to rent rather than buy, boosting demand for apartments.

The average effective rent at Class A downtown buildings rose to $2.17 a square foot in the second quarter, up 2.4% from the first quarter, according to a report by Appraisal Research Counselors, a Chicago-based real estate consulting firm. Effective rents include concessions such as free rent.

While that’s still down 4.8% from the year-ago period, it’s a positive sign for an apartment market that usually takes a hit during recessions.

“All things considered, it’s not a terrible place to be right now,” says Appraisal Research Vice-President Ron DeVries.

The average Class A occupancy also rose for the second consecutive quarter, to 93.4%, up from 90.9% in the first quarter and 91.6% in the year-ago period.

The numbers would be even stronger if it weren’t for all the new apartment buildings on the market. Developers have built 2,098 apartments downtown since early 2008, and the so-called shadow rental market is growing as more condo owners, unable to sell their units, rent them out instead.

Demand for apartments, meanwhile, normally tracks closely with the job market, which has been awful. Chicago-area employers have cut more than 200,000 jobs in the past year.

But other factors may be playing a larger role in the current market. Many would-be buyers are renting instead either because they’re worried about condo values falling further or because they can’t get a loan to finance a condo purchase. Others may be nervous about taking on a mortgage given the state of the economy, says Greg Mutz, CEO of Amli Residential Partners LLC, a Chicago-based apartment owner.

“People are worried about their jobs,” he says. “When you’re in that kind of mind-set, you don’t want to be illiquid, and you want to have flexibility.”

The apartment market is “not as bad as I thought it would be,” he says.

Amli completed construction last year on a 440-unit building at 900 S. Clark St. While the high-rise is more than 80% leased, it faces competition from other new buildings in the South Loop, where developers have been especially busy.

Compounding the supply problem, Chicago-based developer Centrum Properties Inc. recently decided to convert a new 342-unit condo project at Roosevelt Road and Clark Street into apartments.

Security Deposits - Why They Are Disappearing in Chicago

2009-08-24T14:38:00.000-07:00

If you live in Chicago and you have rented an apartment recently, you may have noticed the fact that more and more landlords are not requiring security deposits. In fact, most large managed apartment buildings have done away with deposits altogether. What is behind this trend?

Certainly, it could be that Chicago landlords recognize the dire economic times we all live in and are loosening their requirement out of a well-placed sense of rental brotherhood. Do you buy that? Didn't think so. Then what is behind it?

The answer: LAWYERS. Yes, that's right, for once, law firms are on the side of the little guy. Chicago lawyers have identified the Chicago Residential Landlord Tenant Ordinance ("RLTO") as a perfect tool to go after the deep pockets of landlords recovering thousands of dollars for their clients while pocketing a little for themselves in the process. RLTO places significant burdens on Chicago landlords when it comes to security deposits. Among the requirements are that the landlord give a proper receipt for any security deposit that it accepts, that the deposit not be co-mingled with the landlord's money, and that the deposit be returned or properly accounted for upon lease termination. As easy as it seems, landlords are having difficulty following RLTO and the Court in Chicago have been unforgiving in their strict enforcement. The result is that many landlords have been faced with large judgements and class action claims that threaten their bottom line.

In response, many landlords have chose to drop the requirement that tenants post a security deposit altogether. This is a windfall for Chicago tenants. No longer will tenants be required to come up with an extra month or sometimes two months for a security deposit freeing up substantial amounts for other needs. Deposits are often replaced with nonrefundable "move in" or "processing fees" which may or may not be returned to the tenant or credited against the rent due. These fees average about $250, but can vary widely.

South Loop Office Opening October 1, 2009

2009-08-24T10:07:00.000-07:00

Yes, we are growing again. Rent Smart is pleased to announce that we are opening of fifth office on October 1, 2009. The new office will be located at 2000 South Michigan Avenue in the South Loop in the historic Locomobile Lofts building. We are excited that we will now have a new presence in this area to better serve our clients. We welcome you to stop into our new office to say hello. And, of course, if you are in the rental market please keep this location in mind. We are here to serve all of your rental needs.

Real Estate School Is Starting August 27, 2009. Enroll Today - It's FREE for Our Agents.

2009-08-01T10:48:00.000-07:00

Rent Smart has partnered with the Chicago Real Estate Institute to offer the pre-licensing salesperson course beginning August 27, 2009. CREI is one of the most respected and established real estate schools in the Chicago area. The classes will be held at Rent Smart's office located in West Town at 1900 West Chicago and at the corporate office located in Edgewater at 5650 North Broadway. The course will be taught exclusively by Chicago attorney Thea Pazen . Thea takes great pride in making sure that all of her students exit the course with the knowledge required to not only pass the state examination but also garner the tools required to launch a long and successful real estate career. We are proud to offer the course to our agents FREE OF CHARGE because we are committed to having all of Rent Smart's agents licensed as sales agents to better serve our growing client base.

If you are interested in becoming a licensed agent, please contact Anna at our corporate office at 773-275-2700 to learn more about enrolling in Rent Smart's next course and joining our team. Learn more about CREI at www.ChicagoRealEstateInstitute.com

iGo Car Sharing Partners With Rent Smart

2009-07-24T13:35:00.000-07:00

Wow! What an opportunity. Rent Smart has partnered with iGo Car Sharing to offer our mutual customers great benefits. Existing iGo member get $100 their first month's rent when they present their membership card upon first contacting a Rent Smart agent. Not a member? No problem - Rent Smart will purchase a 1-year membership for you upon signing a lease. Check out all the benefits of the iGo Car Sharing program at www.iGoCars.com

Setting The Stage For Quick Rentals - Staging 101

2009-07-05T15:32:00.000-07:00

The subject of home staging has seen a recent surge of interest, due in part to TV shows that elevate professional stagers to the level of rock stars; however, you don't need a degree in interior design in order to make your home more marketable. Although staging is popular with sellers, landlords often overlook its importance in the rental market. By following a few simple rules, you may be able to substantially reduce the amount of time it takes to get prospective tenants to sign on the dotted line.

1. Clear the clutter. Any home stager will tell you that the most important thing you can do to move a property quickly is to clear the clutter. If you don't have time to properly weed through a mess of items, at least box them up and relocate them. Get a storage unit or make use of extra basement space. Your unit will seem more spacious and welcoming, and there is also an additional hidden benefit in store for you: part of the moving process will already be behind you.

2. Keep it simple. It is important to de-personalize and simplify your space. The environment you create should subconsciously encourage prospective tenants to visualize their own furniture and possessions within it. Take down pictures of friends and family and remove childrens' art collections from the fridge.

3. Keep it clean. Nothing turns future tenants off more than dirt, grime, and dust bunnies. Even if they can see past a mess, they may not be able to see past filth. Make sure the bathroom and kitchen are well-scrubbed and the floors are vacuumed and/or mopped.

4. Don't put off repairs - fix it now. Many owners put off repairs until they have checks in hand from their future tenants, but it is best to go ahead and make certain repairs before you start showing the place so that it looks more presentable to future renters. Things like broken blinds, mildew-ridden grout, and dust-caked ceiling fans are quick and easy fixes that can be done before showings commence.

5. Make a deal with the occupants. If you are not currently living in the unit and it is occupied by someone else, you may wonder how you can pull these things off without their cooperation. The answer? Make a deal with them. Offer them a generous gift card to their favorite restaurant if they are able to keep the place looking presentable while it is being shown. It may sound crazy, but it actually works. As you can see, with a small amount of time and effort, you can quickly transform your rental property into a hot listing. A space that shows well will fly off the market much faster than a dirty, cluttered space in ill repair. Stage your space for maximum impact and prepare to reap the rewards of a quick and easy rental!

Loft Living, Is It Right For You?

2009-06-25T15:35:00.000-07:00

Lofts are often described as cool, hip, urban and a number of other Bohemian phrases that connote a certain idealized lifestyle. Lofts often have many appealing elements, to be sure. Many people looking to break out of the dull, drab four walls often are attracted to the allure of a loft home. They often offer exposed brick walls, expansive open spaces, unique floor plans, timber beam ceilings, hardwood floors, fireplaces, and the list goes on. Lofts offer great flexibility in terms of the home layout and many are one of a kind homes.

Before jumping on the loft bandwagon, carefully consider all aspects of your choice. Is loft living right for you?

Exposed Brick. Looks good, but here's the downside. Lofts are often constructed from old factory or industrial buildings. The brick is typically very old and has begun to deteriorate. This mean dust and lime scaling. It is difficult to maintain a clean home when your walls are constantly throwing off dust. Sealing the brick in many cases is not a viable option. Insulation. That same brick may not offer you the same comfort as a modern insulated home. An exterior exposed brick wall means exactly that. You are exposed to the outside elements. The only thing between you and the outside is a layer of potentially decaying brick with no real insulation. Always consider the heating cost when considering a loft with exposed brick.

Also, take a careful look at the floor and ceiling partition. Is there an adequate sound barrier? Many lofts have flooring that was original and may not be insulated between you and your neighbors. Make sure you visit the home when neighbors are present so that you can personally judge sound insulation.

All that space. That open floor plan looks appealing at first, but does it suit your lifestyle. Many people find comfort in defined rooms which a loft may or may not offer. Do your furnishings comport with the space? Are living areas distinct from sleeping areas? Consider what happens when a spouse, partner, guest want to watch tv when you want to sleep. A lack of doors may be sorely missed on those occasions.

Creature comforts. Many loft building lack some of the most appealing creature comfort. Modern building, as opposed to those constructed as factories at the turn of the century, offer many amenities. Pools, gyms, common area decks, gardens, etc. may be missing. In sum, lofts are a great hip urban adventure for many. For others, they are an image that may have little practical appeal after careful consideration.

West Town Office Now Open

2009-06-01T11:03:00.000-07:00

As of June 1, 2009, Rent Smart's West Town office is now open. We are very excited by the opportunity to have a presence in West Town as our client base in that area has grown incredibly over the past year. The office is a state of the art facility that will allow Rent Smart to host 50+ agents to serve our clients in the West Town, Ukrainian Village, Bucktown, Humboldt Park and Logan Square communities. Our manager for this location will be Annette Ivory. Annette is a licensed real estate broker who brings a wealth of experience and enthusiasm to the position. Annette is looking forward to the challenge of launching Rent Smart's new office in West Town. Stop by and say hello.

To contact Annette or the West Town office, call 773-645-4130. Or, email Annette at ivory@rentsmarthicago.com. View all of our office listings at www.RentSmartChicago.com

The Perils of Moving In A Big City Like Chicago

2009-05-25T15:29:00.000-07:00

Moving into your new place in a big city may not be quite as simple as you think. Here are a few things to consider as you plan your move:
1. If hiring movers (laborers), make sure you know up front whether or not they are licensed, insured, etc., so you know what kind of liability will fall on your shoulders. There are plenty of laborers in big cities who may do a great job, as long as you understand you could be on the hook for damage they may cause.
2. If you are moving into a large building with loading docks and freight elevators, make sure you schedule times to reserve their use. Also make sure you have filled out the appropriate paperwork and paid fees or deposits that may be required of you. Taking care of these details in advance can save you some major headaches later on.
3. Make sure you rent a truck that will fit at its final destination. Big cities are cramped. Make sure you will actually be able to find a place to park and unload all that stuff you so carefully packed.
4. Speaking of parking: turn your flashers on and set out safety reflectors, cones, etc., so that you don't get bulldozed on your way in or out of your new place. Make sure you have adequate help so that you don't block traffic for too long. Driveways don't exist in many urban areas. You will most likely be unloading your belongings in the middle of the street. Prepare for the inevitable.
5. Know where to return your truck and the hours they are open. Since there may be nowhere to park your empty, over sized vehicle overnight, make sure you get that truck back in time or you may be stuck with a ticket, a tow, or a night of driving around aimlessly.

Top 10 Considerations When Deciding to Work With An Apartment Search Firm

2009-05-05T15:34:00.000-07:00

If you are like many people who are relocating to a new city, you know by now how frustrating it can be to find an apartment that is right for you. It is difficult to make appointments to see apartments when you are available, the landlord is not available or the apartment is just not as advertised. The solution is to work with a professional apartment location firm for your next apartment. In selecting a firm, here is what you should look for:
1. Is the firm comprised of professional Realtors and licensed rental agents? Many firms employ inexperienced people just out of school or just out of work who are looking for a temporary gig until they can find a real job. Avoid those companies. A good apartment search firm will employ only licensed real estate salespersons or leasing agents. These people see their job as a career and not just a temporary paycheck. The results you will get are similarly professional.
2. How does the firm get its listings? Apartment location firms employ various means for obtaining the listing for the apartments that they list. Some employ call centers where employees sit at banks of phones calling potential landlords that they have located through scanning classified advertisements. The quality of these listings can vary greatly. Often, the apartments have not even been viewed by the agency prior to listing and the people who are asking you to rent it are not even familiar with its amenities. Go with an office that finds quality apartments through hard work and referrals. Ask how the firm gets its listing. Do landlords come to them or do they employ cold calling tactics? Only firms that put the best effort forward in obtaining the listing will have the best apartments to show.
3. How does the firm market its listings? Take a careful look at how each firm handles it marketing. Does the firm have just a bare bones description of the property? Are there detailed photographs of the inside and outside of the properties? Are its amenities fully described? Work only with firms that have detailed descriptions of the properties that they renting. If the firm did not take the time to get the details, how can you trust that they will show you the properties that you want to see.
4. Does the firm have a web site? Many real estate firms offer properties for rent from time to time but few are dedicated full-time to the rentals. Take a good look at the firm's web site. Is it dedicated to finding apartments for people? Or, as is common, is the firm's true business the sale of properties. Does the firm have detailed descriptions of the properties it rents on it web site with photographs?
5. Where is the firm located? Is the apartment finding service in the city itself? If so, what neighborhoods does it have offices? There are many "national" firms that seek to rent apartments but hey often have no physical presence in your area. Avoid them. Can you really expect that such firms will know anything about the neighborhoods that you want to live in? Look at where the firm has offices. Firms are most familiar with the areas where they have offices.
6. Are the agents knowledgeable? When you call a firm and speak with the firm's agents are they knowledgeable? Can they answer specific questions about the apartments for rent? If not, do not use that firm. Work with a firm that has only knowledgeable agents that know the properties for rent and the neighborhoods where those properties are located. If an agent cannot answer specific questions, look elsewhere.
7. Does the firm charge a fee? Ask the firm what fees there are for their services. Most firms that rent apartments are paid by the landlord and not the tenant. However, some forms also charge application and credit report fees. Before you start working with a firm, ask what these fees are and get it in writing. Expect to pay a reasonable fee of $50-75 including your credit check.
8. How are showings handled? It is also important to consider how each firm handles the actual showings for its apartments. Are you meeting the agent at the properties? Do you know the city well enough to find your way around to the different properties? A good firm will meet you at their offices and then drive you to each appointment. You can relax while the agent locates each property and while the agent drives take in the areas amenities.
9. Does your agent listen? The number one frustration expressed by tenants is that the agent did not listen to their particular preferences and instead showed them properties that were not in the areas they desired or simply did not meet their needs. Many felt that they had wasted their time. If you notice that your agent is showing you properties that are out of your price range, not in the neighborhood that you want or are simply not as described to you, then stop working with that firm. A good apartment service listens to you.
10. Do you feel comfortable with your agent? As the client, you have the right to demand good service from courteous, knowledgeable and professional agents. If ever you are uncomfortable with the service that you are receiving, simply stop working with that form and contact one that is lives up to your standards. Never feel pressured into making a decision that you will regret. A good firm will never employ pressure tactics but will invest the time with you in making a good decision.
Finding an apartment can be a good experience if you choose the right firm to assist you. Selecting that firm should be undertaken with serious consideration because the choice you make will impact you significantly. It is after all your home that is at issue. Select a firm based upon these considerations and you will no doubt succeed.

The Sky is Falling - Or at Least Your Rent Is

2009-02-24T19:12:00.000-08:00

Chicago Crain's Reports:

Downtown apartment rent falls by most in 7 years

By: Alby Gallun Feb. 23, 2009

(Crain) — Rents at top-tier downtown apartment buildings last year fell the most since 2001 as a development boom and deepening recession gave tenants the upper hand over landlords.

Effective rents at Class A downtown buildings fell to $2.11 a square foot in the fourth quarter, down 6.2% from $2.25 in the year-earlier period, according to Appraisal Research Counselors, a Chicago-based real estate consulting firm. It was the first annual drop since 2003 and the biggest decline since 2001, when effective rents slid 7.7%.

In a case of bad timing, rising unemployment is depressing demand for apartments amid a surge in supply of both apartments and unsold condominiums that are being rented out. Many landlords are still holding the line on face rental rates, but a growing number are offering one or two months free, driving down so-called effective rents.

“I think this next year is going to be really tough,” says Appraisal Research Vice-president Ron DeVries. “We’ve just been having lots of ugly conversations lately.”

Effective rents fell 6.6% between the third and fourth quarters, the biggest quarterly drop since Appraisal Research began surveying the downtown market in 1997. The fourth quarter is typically slow for most landlords, with rent declines even in strong markets.

The downtown Class A occupancy rate, meanwhile, fell to 90.6%, from 92.8% in the third quarter and its lowest level in six years, according to Appraisal Research. While Mr. DeVries expects the occupancy rate to slip further, he doesn’t see effective rents dropping as low as they did in the last downturn, when they bottomed out at $1.83 in 2003.

The depressed for-sale residential market initially benefited apartment landlords, as many would-be buyers rented instead, either because they couldn’t qualify for a mortgage or didn’t want to buy a house or condo that could fall in value.

But the worsening economy now is depressing demand, forcing some renters to save money by doubling up or moving back home with their parents. The job market, which drives demand for apartments, continues to shrink: Moody’s Economy.com forecasts that the Chicago area will lose 133,000 jobs in 2009 — about the same number lost during the last recession — and won’t start adding them until after 2010.

Still, an oversupply of apartments is the larger problem for landlords right now, especially in the South Loop. Developers completed three buildings comprising 1,016 apartments in the South Loop last year, according to Appraisal Research.

And condo rentals are becoming a bigger competitive threat, with developers adding nearly 3,200 condos to the South Loop in 2008 and 2009. Unwilling or unable to sell their units in a lousy market, many condo owners are renting them out for the time being.

Some are offering good deals on rent, one reason new apartment high-rises in the South Loop have been slow to fill up. A 278-unit building at 1401 S. State St. developed by Chicago-based Equity Residential and Dallas-based Lincoln Property Co. is only 60% leased 10 months after opening, according to Appraisal Research. Under normal market conditions, a similar building would be at least 90% full at this point.

The new South Loop projects “have hit the market at the worst time,” Mr. DeVries says. “If you want to live in the South Loop, you have lots of options. That has really slowed down the leasing.”

Lincoln and Equity Residential representatives did not return calls for comment.

Some landlords are trying to address the competitive threat posed by condo rentals by playing up the advantages of living in an apartment building, which usually have on-site customer service staff.

“We talk about the benefits of being in a professionally managed building,” says Mark Segal, president and CEO of Chicago-based Habitat Co., whose downtown properties include Kingsbury Plaza, a 420-unit apartment tower at 520 N. Kingsbury St. When tenants have a problem, they “can go directly to our management staff as opposed to going to a unit owner.”