Archive for September, 2010

FHA (HAFA) SHORT SALE

If you are a seller who has fallen behind on their FHA mortgage then you will qualify for a FHA (HAFA) Short Sale or Deed in Lieu of Foreclosure. This is much better than a Foreclosure or a Bancruptcy on your record.

If you are a buyer looking to purchase a Short Sale ask if the seller has a FHA  loan.

Why?

Because FHA is one of the few lenders who understand Short Sales and the process can take less time to close.

 

  • Seller must first attempt a Home Modification and either be denied, or reject offer being given.
  • FHA will approve sellers for Short Sale Consideration.
  • FHA will have the home appraised by an FHA appraiser
  • FHA will issue a Short Sale Agreement (SSA) at an approved List Price
  • FHA will give the seller 4 months to find a buyer and another 2 months to close
  • FHA will convert sellers to a DEED IN LIEU if not able to sell home.

If you would like more information on this topic then please leave a comment and I will be glad to get in touch with you.

Written by Jack Lewitz | Discussion: No Comments »

FIVE STAGES OF GRIEF REVISITED

One of my most successful Blog Articles for Active Rain was 5 Stages of Grief in a Short Sale. In that blog I compared the Five Stages of Grief a terminal ill patient goes through when informed of their life threatening illness. In that blog article I said sellers in Short Sales seem to go through these same stages.

I would like to expand on this and now say I think Banks go through these same stages. Let’s review the stages and you will see what I mean. The five stages are:

  • Denial
  • Anger
  • Depression
  • Bargaining
  • Acceptance

Stage1 Denial:  Those who have been doing Short Sales for a while must wonder why banks are taking so long to approve Short Sales. Did you ever think it might be because they are in Denial. Think about it for a minute. The banks have one value for the asset and they get a offer much less. 

Stage 2 Anger: Banks seem to be angry about alot of things and are out to get even with most everybody. Their anger is directed at the President, The Treasury, The Fed, The Press, New Financial Regulation, New Capital Requirements, Credit Card Reform, Number of Loan Defaults, on and on all the way to the homeowner who is being blamed for the problem the banks have created from their own greed… In this instance I do not agree that GREED IS GOOD.. Nor is Anger in this situation. It just seems to perpetuate the problem.

Stage 3 Depression:  This is the stage where most Short Sales sit in limbo. The bank is so depressed about the number of people in default and the diffference between the Banks Asset Values on their books and the real Market Value of these properties they just can’t seem to get out of their deep depression to do what is in their best interest and that is selling the asset to a new buyer. By the way most Short Sales that end up in Foreclosure is  because the Banks cannot get beyond these first 3 steps.

Stage 4 Bargaining: This is the most critical stage of a Short Sale. This is where a Bank has all of the informatiion they need to make a decision inother words a “Complete Short Sale Package”. The bank looks at the Seller Information, the Hardship letter, the HUD-1, the remaining balance on the loan, the buyers offer and proof of funds and determines the NET dollar amount they are willing to accept.

Stage 5 Acceptance: This is when the banks give  the “Final Approval For a Short Sale”.  This is when the banks come to the realization that the Short Sale is in their best interest and can move on to another deal

Written by Jack Lewitz | Discussion: No Comments »

WHAT IS HAFA?

[youtube]http://www.youtube.com/watch?v=8TXx8rKy-Ow[/youtube]

Written by Jack Lewitz | Discussion: No Comments »

The State of Real Estate in Rogers Park

Today I had a meeting with Rogers Park Community Development Corporation and shared  “The State Of Real Estate in Rogers Park”. 

Rogers Park is located on the Northside of Chicago. Its boundaries are the Lakefront on the East, Ridge Avenue on the West, Devon Avenue South to just a little North of Howard on the North. Loyola University is located in Rogers Park.

Real Estate in Rogers Park consist of Single Family Homes, Condominiums, Townhomes and some Multi-Family 2 -4 unit buildings.

Prior to 2007 Rogers Park had a lot of buildings that were converted from rental to condominiums. As a result most of the real estate market was being supported by first time home buyers buying new construction condominiums.

The following data covers the Residential Real Estate Market in Rogers Park over the past 24 months.

 I have included data for both Single Family Homes and Attached Homes which include condo and townhouse sales data.

As the data suggests there were fewer sales in the past 12 months for both Single Family and Attached homes in Rogers Park. This maybe the result of the First Time Home Buyer Tax Credit or just due to fewer qualified buyers or a combination of both.

When buyers were looking to buy they tended to look at pre-foreclosure short sales or foreclosures 21%-43% of the time.

Single Family Home prices actually appreciated 3% over the past 12 months while Attached homes depreciated in value 12% during the same period.  Clearly the  shear number of  distressed Attached Home Sales was the main reason for this reduction.

 

 The Real Estate Market in Rogers Park

The following data comes from the MLS. The author of this report makes no representation to the accuracy of the data provided by the MLS.

Property Type Months Total Sales Short Sales Foreclosures % of Total Sales Market Time Avg Sale Price
SF 12 34 1 6 21% 177 $390,000
SF 24 55 3 8 20% 199 $377,000

 

 

 

Property Type  Months Total Sales Short Sales Foreclosures % of Total Sales Market Time Avg Sale Price
Attached 12 392 34 133 43 191 $151,000
Attached  24 714 63  159 31 202 $169,000

 Join Rogers Park Community Leaders this Saturday September 11, 2010

Community leaders reach out to struggling condo and homeowners in Rogers Park.

 

( Chicago , IL ) — Condo and homeowners are invited to attend an informational workshop hosted by 49th Ward Alderman Joe Moore on September 11, 2010 from 10:00 am-2:00 pm at the Rogers Park Library 6907 N. Clark Street, 2nd floor.

 

The event will feature a presentation on How to Avoid Foreclosure given by local HUD-certified housing counseling agency Rogers Park Community Development Corporation.  Immediately following the presentation, participants will have the opportunity to meet one on one with HUD- certified housing counselors.  Volunteers from Legal Assistance Foundation, CEDA and Citizen’s Utility Board will also be available. 

 

Contact:

Caleb Sjoblom

Director

Rogers Park Community Development Corporation

773-262-2290 x 13

www.rogersparkcdc.org

 

###

 

Heather Whiteford

Associate Director

Rogers Park Community Development Corporation

1411 W. Lunt

Chicago , IL 60626

Ph: 773-262-2290 Ext. 12

Fax: 773-262-2537

www.rogersparkcdc.org

Eat, Play, Love Our Neighborhoods! http://www.explorechicago.org/city/en.html

Written by Jack Lewitz | Discussion: No Comments »

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708-309-5334


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