Archive for the 'Bank Owned' Category

Another Bonehead Ideas from Fannie Mae

Fannie Mae has a new bonehead idea of how to help 74 million US home owners who are upside down with their Mortgage.

According to Realty Track the majority of these homeowners are still making payments on their loan and now would qualify to purchase a new home while renting the home that is still upside down.

So think about it folks. You have someone who has never missed a house payment but is struggling to keep the home. Is it wise to rent this home to someone else and buy a new home.

It seems to me you are compounding the problem, Sure you can rent the house and use the income to help qualify you for new house but what happens when your tenant stops paying you rent.

What happens when you need to make repairs on both houses at the same time.

What happens when you owe Real Estate Taxes or Insurance and you have a deficient amount escrowed to cover these expenses.

What happens when you run out of reserves





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News About IL Real Estate Specialists

As the Broker Owner of IL Real Estate Specialists I am pleased to announce the recent affiliation of the National Mortgage Forgiveness Plan Organization to help homeowners in distress in Evanston and Skokie. IL Real Estate Specialist has dedicated itself to help as many homeowners who are experiencing all sorts of distress and hardships and have nowhere to turn for advise. National Mortgage Forgiveness Plan and IL Real Estate Specialists as a Real Estate Professional Affiliate are here to help homeowners and listen to their unique problems and come up with solutions.

In the month of June  a concerted effort will be made to reach out to homeowners and offer them assistance and Real Solutions to their problems. To learn more about National Mortgage Forgiveness Plan or a way to get in contact with Il Real Estate Specialists today just click on the link provided:

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Fannie and BOA: Playing the Game of Hearts….

hearts game




I just finished reading an article about the recent agreement between Fannie Mae and BOA. BOA has agreed to pay FAnnie MAe $3 Billion in Compenatory Fee obligations, will repurchas 30,000 loans from Fannie and sell their servicing rights of 2 Million Mortgages.

As I read this article it reminded me of a Game of Hearts. In a game of hearts you pass 3 cards to the person next to you. Usually these are the worst cards in your hand because the objective of the game is to end up with “no hearts” or all of the “hearts” which is called “Shooting the Moon”. Shooting the Moon includes getting all hearts plus the Queen of Spades which is called ” the Bich” in the game.

Now back to Fannie and BOA. Fannie has just passed BOA its worst cards the “ACE” and “King” of Hearts and the “Queen” of Spades (Bitch) cards to BOA. Now it is up to BOA to decide how to play the game. Do they try to win by not getting any Hearts or do they get them all by “Shooting the Moon”.

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Most Feared Name in Real Estate today Is “Strategic Default”



Decisions  or plans designed  to impact  favorably the key factors on  which the desired outcome of an organization, game, system, venture, or war, depends. See also tactical.


Why do people in the Real Estate Industry today hate the word “Strategic”?  We all make decisions and sometimes we make bad decisions and have to re plan and make new decisons. Our decisons have impact on others. Sometime these decisions have negative impact on others and this is what is feared the most.

I have come to realize working in the distressed Real Estate Market that Organizations all strategize. Its a game and it all depends on which strategy you use depends on whether you win the game or loose.

To say some are allowed to strategize and others are not allowed is not fair. It gives an unfair advantage to some and is almost like cheating in a game.

I have had many discussions with Banks about the word “Strategic Defaults” and everytime I use this word I get a negative response. Why do they not like this word, well for one reason, they see a Strategic Default favors the seller and not the Bank.  I am not sure this is always the case but lets say “Strategic Defaults” do favor the Seller. Are there not Strategic Foreclosures being made that favor the Banks over the Seller? The answer is Yes. So if both Seller and Lender are both doing it then I say lets get this word out in the open and discuss “Strategies” together that benefit both Seller and Bank.

All of the Major Banks today favor Short Sales over Foreclosure. Why because this Strategy in the end is better for them. In most instances the Lender will net more money in a Short Sale than if it goes to Foreclosure. Yet inorder to do a Short Sale the Seller must show a Hardship. A “Strategic Default” is not viewed as a “Hardship”. Thus the dilemma.

I ask: Why is  Donald Trump allowed to do a “Strategic Default” and others are not?  I think the answer is because Donald Trump has money and it is better for the bank to default on one of his projects than loose the his business. In other words “Strategic Defaults” with Donald Trump actually is a “Strategy” that benefits both Donald Trump and The Banks who lend him money.

I say this concept of “Strategic Default” needs to be re-examined and allowed to happen because it really can benefit all parties in the transaction.



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Bank Proverb We All Should Be Reminded About..



A Banker is a fellow who lends you his umbrella  when the sun is shining but wants it back when it begings to rain

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Buying Foreclosures

imagesCAS1UB1C This is a first in a series of blog articles that wil be dedicated to helping First Time Home buyers understand how to buy a foreclosure.

Many people do not understand that Fannie Mae has a program that is called “First Look” that allows “First Time Home Buyers” the option to make offers on their homes over “Investors” offers.

“First Look” is a way Fannie Mae encourage more homeownership and let’s be frank a real estate market driven by homeownership vs investor driven market is a healthier real estate market.

So for the first 15 days a Fannie Mae Property is on the market it can only receive offers from buyers who want to occupy the home. Investors are not permitted to make offers during this 15 day “First Look” period.

So if you are a first time home buyer then I would consider buying a Fannie Mae owned property.

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What Goes into a Broker Price Opinion (BPO)

The Short Sale review process begins with ordering the Broker Price Opinion (BPO).apple  and peach composition isolated on white

A BPO is nothing more than comparing “Apples to Apples” (Single Family to Single Family, Condo’s to Condo’s and Multi-family to Multi-family) and coming up with a “Current Market Value” for the Subject Property.

Three (3) Sales Comp’s are required in each BPO. The bank wants these sales to be within the past 6-months to 12-months. The Sales must be within a mile radius of the subject property and if there are any sales that are sold in “As-IS” condition like other Short Sales or Foreclosures then these should be used first as a Sales Comp. The Bank wants to also know the Last List Price , the Final Sales Price, the Number of Days on the Market, and Financing such as FHA, Conventional for the buyer.

Three (3) Active Listings are required in each BPO. The bank wants Active Listings of other Short Sales and Foreclosures being sold in “As-Is” Condition. These listing should be within a 1 mile radius of the subject property. The Original List Price, Current List Price, and number of days on the market is also included.

Market Conditions are included in a BPO. The average Days on Market (DOM.), description of area as rural, suburban, or urban. Is the market declining, stable, or increasing.

Subject Marketability is describing the negative and positive features of the subject property in relation to the current market conditions.

Estimated Value is based on “As-Is” Conditions and “Repaired Conditions. Market Values will include List price and estimated Sale prices for 60-90 days and another value for 90-120 days.

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