Friday, March 18, 2011

Rental Prices Could Jump Double Digits as Vacancies Drop

Via Chicago Breaking News
House-price-increase-photo
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

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Friday, March 11, 2011

Saturday St. Patrick's Day Celebration in Chicago

Green_river
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?

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Wednesday, March 2, 2011

Top Dog Parks of Chicago

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!
 



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Wednesday, February 23, 2011

Rental Prices Will Increase Soon. Start Looking Now!

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. 

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Tuesday, February 1, 2011

Logan Square’s Time Comes Round in Chicago

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.

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Wednesday, January 26, 2011

Top Neighborhoods to Rent Chicago Apartments

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}

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Monday, December 20, 2010

Two States Sue Bank of America Over Mortgages

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.

Read more...

Monday, November 1, 2010

Most Americans Concerned About Housing Payments

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.

Read more...

Most Americans Concerned About Housing Payments

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.

Read more...

Wednesday, October 27, 2010

Chicago Home Prices Rise for Fourth Straight Month

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.

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Monday, October 18, 2010

Homebuilder confidence up but still low

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.

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Friday, October 15, 2010

Mortgage Rates Ease Again

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

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Thursday, October 14, 2010

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

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):
  1. Jacksonville, Fla. (55.8 percent)
  2. Phoenix, Ariz. (55.4 percent)
  3. Minneapolis-St. Paul, Minn. (53.2 percent)
  4. Orlando, Fla. (52.8 percent)
  5. Chicago, Ill. (52.1 percent)
  6. Tucson, Ariz. (51.7 percent)
  7. Baltimore, Md. (51.3 percent)
Markets with the lowest share of discounted listings (of 26 markets surveyed):
  1. Denver, Colo. (34.4 percent)
  2. Los Angeles (39.1 percent)
  3. Richmond, Va. (42.9 percent)
  4. Miami-Ft. Lauderdale-Palm Beach, Fla. (43.3 percent)
  5. San Francisco (45.2 percent)
  6. Charlotte, N.C. (46 percent)

Read more...

Tuesday, October 12, 2010

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

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."

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Thursday, October 7, 2010

Nancy Pelosi Pushes For Forclosure Fraud Investigation

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.

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Monday, October 4, 2010

"Robo-signing" Controversy Continues

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.

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Saturday, September 18, 2010

It's a Great Time to Buy!

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).

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Wednesday, September 15, 2010

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

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.

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Monday, September 13, 2010

Agent Responsibilities

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Sunday, September 12, 2010

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

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.

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About This Blog

This blog is just one more effort to help you stay on top of Chicagoland's rental market.  Here we bring you the latest in real estate news, trends and ideas and our particular insights.  Each day we attempt to post articles that you may find insightful, helpful or just interesting.  

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