F.Y.I. from Simon Mak, a really good friend to us at Windy City
Good to Know
NEVER KNEW THIS BEFOREI wonder how many people know about this A 36 year old female had an accident several weeks ago and totaled her car. It was raining, though not excessively, when her car suddenly began to hydro-plane andliterally flew through the air. She was not seriously injured but very stunned at the sudden occurrence!When she explained to the highway patrolman what had happened he told her something that every driver should know - NEVER DRIVE IN THE RAIN WITH YOUR CRUISE CONTROL ON. She thoughtshe was being cautious by setting the cruise control and maintaining a safe consistent speed in the rain.But the highway patrolman told her that if the cruise control is on when your car begins to hydro-plane and your tires lose contact with the pavement, your car will accelerate to a higher rate of speed making you take off like an airplane. She told the patrolman that was exactly what had occurred.The patrolman said this warning should be listed, on the driver's seat sun-visor -
NEVER USE THE CRUISE CONTROL WHEN THE PAVEMENT IS WET OR ICY,
along with the airbag warning. We tell our teenagers to set the cruise control and drive a safe speed - but we don't tell them to use the cruise control only when the pavement is dry.The only person the accident victim found, who knew this (besides the patrolman), was a man who hada similar accident, totaled his car and sustained severe injuries.If you send this to 15 people and only one of them doesn't know about this, then it was all worth it. You might have saved a life.NOTE: Some vehicles (like the Toyota Sienna Limited XLE) will not allow you to set the cruise control when the windshield wipers are on.
Thursday, January 15, 2009
Wednesday, October 29, 2008
What is a short sale??
In a word- a nightmare, in my humble opinion. I guess I am in a unique position since I, at one time, worked at a Bank. Let's see, maybe I can explain it this way..
As an example: A "Short" position is when the house gets an offer that the seller believes reflects his home value, but is less than the money he owes. The reason this could happen are many.
Let's try to vision how this could happen. At one time people took out mortgage with the usual 10% - 20% down. Then as time and appreciation took place their debt was paid by a mortgage payment and their equity grew. Then lo and behold, the people said, we have $50,000 in equity in the house, and we need a new car, so let's borrow the money from the house to pay for the car, and then we can write off the interest on the loan for the car, since we can't on a regular loan. Or maybe it wasn't a car but just they had used credit cards to supplement their income and then found the interest was more than they would pay on a home equity line of credit. Gosh, everyone on TV recommended it!
But this is an easy case to understand. Some are ladden with very sad stories. I know of a person who's daughter needed surgery. He borrowed his equity to pay the medical bills not covered by his health insurance. Now, between the home loan and equity line, he decides to put his home on the market. The market response is that his home is lower than his indebtedness.
So the "nightmare" is for the sellers. Then from what I understand it's been a "nightmare" for the Banks who loaned money in good faith for repayment to return some profit to their repay their investors.
Now comes the buyer, who offers what he believes is market value. The Seller wants to accept the offer, to get out of his financial mess (though he will not be able to purchase property for many years). The Seller goes to the Bank and asks that the Bank be willing to forgive the difference. Well, the Bank isn't in the business of not repaying their investors, and losing money. They are going to want to investigate their customer (the borrower) to make sure that is the only way. If the customer owns other property or other assets, they may say no. All of this takes alot of time!! Now the buyer has a "nightmare" of not knowing if the Bank is going to accept their offer to buy the house they feel is an opportunity.
"
So that's my view of a short sale commonly known as a Nightmare to me. Why for the Realtor? Well, I tried to explain the short sale time line, but the buyer thought I was exagerating, that they thought the sale contingent on Bank approval would be "just a matter of days~ not weeks!".
More likely or not, the Bank will then try to negotiate again the price of the home and of course, the buyer feels the Bank should be listening to the market, and the seller about why they should take less. The Bank will want not to have the property in inventory or a foreclosure since it costs a ton of money, but they also don't want to rush to negotiate their position. But this entire time, I've been following up, working to convince someone of the buyer's position, the Realtor as the listing agent has been trying to explain market value and the book keeper thinks they should get more money or less of a discount of the debt.
It goes round and round.
As an example: A "Short" position is when the house gets an offer that the seller believes reflects his home value, but is less than the money he owes. The reason this could happen are many.
Let's try to vision how this could happen. At one time people took out mortgage with the usual 10% - 20% down. Then as time and appreciation took place their debt was paid by a mortgage payment and their equity grew. Then lo and behold, the people said, we have $50,000 in equity in the house, and we need a new car, so let's borrow the money from the house to pay for the car, and then we can write off the interest on the loan for the car, since we can't on a regular loan. Or maybe it wasn't a car but just they had used credit cards to supplement their income and then found the interest was more than they would pay on a home equity line of credit. Gosh, everyone on TV recommended it!
But this is an easy case to understand. Some are ladden with very sad stories. I know of a person who's daughter needed surgery. He borrowed his equity to pay the medical bills not covered by his health insurance. Now, between the home loan and equity line, he decides to put his home on the market. The market response is that his home is lower than his indebtedness.
So the "nightmare" is for the sellers. Then from what I understand it's been a "nightmare" for the Banks who loaned money in good faith for repayment to return some profit to their repay their investors.
Now comes the buyer, who offers what he believes is market value. The Seller wants to accept the offer, to get out of his financial mess (though he will not be able to purchase property for many years). The Seller goes to the Bank and asks that the Bank be willing to forgive the difference. Well, the Bank isn't in the business of not repaying their investors, and losing money. They are going to want to investigate their customer (the borrower) to make sure that is the only way. If the customer owns other property or other assets, they may say no. All of this takes alot of time!! Now the buyer has a "nightmare" of not knowing if the Bank is going to accept their offer to buy the house they feel is an opportunity.
"
So that's my view of a short sale commonly known as a Nightmare to me. Why for the Realtor? Well, I tried to explain the short sale time line, but the buyer thought I was exagerating, that they thought the sale contingent on Bank approval would be "just a matter of days~ not weeks!".
More likely or not, the Bank will then try to negotiate again the price of the home and of course, the buyer feels the Bank should be listening to the market, and the seller about why they should take less. The Bank will want not to have the property in inventory or a foreclosure since it costs a ton of money, but they also don't want to rush to negotiate their position. But this entire time, I've been following up, working to convince someone of the buyer's position, the Realtor as the listing agent has been trying to explain market value and the book keeper thinks they should get more money or less of a discount of the debt.
It goes round and round.
Have you had your home equity line reduced?
I was talking with an agent who mentioned that she was notified by her Bank that her home equity line had been reduced. So not understanding why, she stopped at the Bank to find she had not done anything wrong, she wasn't deliquent on the pay backs, but that because of the Chicago land decline they had opted to lower her line.
So I sat there, wondering why the Bank would have done that as well as wondering if this was going to be another trend to watch. The Banks seem to be acting more responsible to market conditions. There are people who are "upside" down or owe more in mortgages and 2nd mortgages or home equity lines of credits than their homes have values. At one time, while the market was robust, the Banks felt safe allowing 100% financing, or letting people getting a line of credit against their home equity to pay for colleges, vacations, higher interest loans, or cars.
Today, with foreclosure rates higher than ever imagined and home equity lines are now experiancing defaults as well. Those with high equity lines have seen their home value fall below their total indebtedness - so HELOC (Home Equity Lines of Credit) lenders are taking some drastic steps. Many are freezing lines of credit to the amount already drawn. Others are paring back the maximum value of the line, which is what my friend found out. A few are declaring default far earlier, as allowed by the loan agreement. An occasional missed payment, or a payment coupon returned "undeliverable" by the U.S Postal Service, generates faster loan curtailment.
According to the Chicago Tribune, 1.7% of all home equity lines of credit are experiancing poor back or late pays. This statistic is 500% more than previously experianced. Unlike a mortgage though, lines of credit limits can be altered by the Lender.
I have heard of some people who had "never used" home equity lines, that have written themselves checks just to keep the line open and "used".
So I sat there, wondering why the Bank would have done that as well as wondering if this was going to be another trend to watch. The Banks seem to be acting more responsible to market conditions. There are people who are "upside" down or owe more in mortgages and 2nd mortgages or home equity lines of credits than their homes have values. At one time, while the market was robust, the Banks felt safe allowing 100% financing, or letting people getting a line of credit against their home equity to pay for colleges, vacations, higher interest loans, or cars.
Today, with foreclosure rates higher than ever imagined and home equity lines are now experiancing defaults as well. Those with high equity lines have seen their home value fall below their total indebtedness - so HELOC (Home Equity Lines of Credit) lenders are taking some drastic steps. Many are freezing lines of credit to the amount already drawn. Others are paring back the maximum value of the line, which is what my friend found out. A few are declaring default far earlier, as allowed by the loan agreement. An occasional missed payment, or a payment coupon returned "undeliverable" by the U.S Postal Service, generates faster loan curtailment.
According to the Chicago Tribune, 1.7% of all home equity lines of credit are experiancing poor back or late pays. This statistic is 500% more than previously experianced. Unlike a mortgage though, lines of credit limits can be altered by the Lender.
I have heard of some people who had "never used" home equity lines, that have written themselves checks just to keep the line open and "used".
Saturday, September 27, 2008
Selecting a listing agent
The newspaper's tell you to interview 3 REALTORS to represent you in a real estate sale. Alot of people think the Buyer Agents the most important person in a transaction, but the Listing Agent is your representative and your marketing agent and this is the most important decision you will make for the entire transaction. The decision of which agent and which price though should be separate decisions.
#1 mistake made by sellers is the hire the agent who told them the highest recommended asking price. Often this results in an improperly priced home by the least qualified agent to achieve that price. I'm not suggesting to take the lowest agent either. Rather look at the facts of the homes you think are most comparable and the most recent the sale as well as the competition, and then figure which agent has the tools and knowledge in the market to promote your home to buyers. The better agents know that selling your house is not selling the siding, brick and the mortar, but we are selling a lifestyle ~ a home.
Choose your agent based on qualifications, performance and reputation. While buyers are advised to choose homes based on location, location, and location; sellers should hire agents based on their reputation, reputation and reputation.
#1 mistake made by sellers is the hire the agent who told them the highest recommended asking price. Often this results in an improperly priced home by the least qualified agent to achieve that price. I'm not suggesting to take the lowest agent either. Rather look at the facts of the homes you think are most comparable and the most recent the sale as well as the competition, and then figure which agent has the tools and knowledge in the market to promote your home to buyers. The better agents know that selling your house is not selling the siding, brick and the mortar, but we are selling a lifestyle ~ a home.
Choose your agent based on qualifications, performance and reputation. While buyers are advised to choose homes based on location, location, and location; sellers should hire agents based on their reputation, reputation and reputation.
Why hire a Realtor?
I was asked by a lead, Why should we hire a listing agent when we can go to a discount mls service?
So I made a list to share:
1. Education and Experience~ Many of the people on Windy City connection have sold 30 homes a year and have been in business for 20 years. That's a lot of experience. Most of us are Brokers, with our CRS, Certified Residential Specialists, as well as ABR designations. All of us take not only the required Continuing Education required by our state and license, but we take additional seminars, and courses to make sure we are at the top of our game. So I ask you? Why not hire a professional Realtor who most likely has more education and experience than you?
2. Agents are buffers~ We can filter all those phone calls that lead to no where from lookie loos. We also can induce serious buyers to see the house immediately without looking like an anxious seller.
3. Neighborhood knowledge~ We can show you the facts about your neighborhood, demographics, data on schools and what other homes have sold for. At that most of us tour our area so we have a good idea of the upgrades that house could have had.
4. Price guidelines~ a good REALTOR guides a seller to make the right choices of listing price s0 that the house is in-tune with the comparable homes. Nothing can hurt a marketing effort more than an over priced home.
5. Market conditions information~Many factors determine the price you can ask. Is it a buyer's market, a sellers market, easy financing terms, restrictive financing terms, what is the climate of the economy, what are the current days on the market, what is the list to selling ratio? All of these factor affect pricing.
6. Professional networking~ Real estate agents and Realtors promote their services or listings to each other. One of the reasons we go to seminars is to network and see what's going on with other companies.
7. Negotiating skills and Confidentiality~ Top producing agents negotiate better because they can remove themselves from the emotional aspects of the transactions.
8. Our marketing is paid by us in bulk pricing. Since we are in the business, we have vendors that give us better pricing than you can ever receive.
9. We are in tune with our sellers so we can understand and know how certain terms on a contract will affect them in the future. Making sure all the contingencies are met on a contract, making sure the people who are part of the team ( attorney, home inspectors, vendors) are in the loop of what is going on.
10. Questions come after closing, and we're there to help answer the questions. Because this is a relationship business we want happy clients who will refer us to their friends and family. Keeping you informed about what is happening in the market, or neat new trends, just makes your values stronger.
So I made a list to share:
1. Education and Experience~ Many of the people on Windy City connection have sold 30 homes a year and have been in business for 20 years. That's a lot of experience. Most of us are Brokers, with our CRS, Certified Residential Specialists, as well as ABR designations. All of us take not only the required Continuing Education required by our state and license, but we take additional seminars, and courses to make sure we are at the top of our game. So I ask you? Why not hire a professional Realtor who most likely has more education and experience than you?
2. Agents are buffers~ We can filter all those phone calls that lead to no where from lookie loos. We also can induce serious buyers to see the house immediately without looking like an anxious seller.
3. Neighborhood knowledge~ We can show you the facts about your neighborhood, demographics, data on schools and what other homes have sold for. At that most of us tour our area so we have a good idea of the upgrades that house could have had.
4. Price guidelines~ a good REALTOR guides a seller to make the right choices of listing price s0 that the house is in-tune with the comparable homes. Nothing can hurt a marketing effort more than an over priced home.
5. Market conditions information~Many factors determine the price you can ask. Is it a buyer's market, a sellers market, easy financing terms, restrictive financing terms, what is the climate of the economy, what are the current days on the market, what is the list to selling ratio? All of these factor affect pricing.
6. Professional networking~ Real estate agents and Realtors promote their services or listings to each other. One of the reasons we go to seminars is to network and see what's going on with other companies.
7. Negotiating skills and Confidentiality~ Top producing agents negotiate better because they can remove themselves from the emotional aspects of the transactions.
8. Our marketing is paid by us in bulk pricing. Since we are in the business, we have vendors that give us better pricing than you can ever receive.
9. We are in tune with our sellers so we can understand and know how certain terms on a contract will affect them in the future. Making sure all the contingencies are met on a contract, making sure the people who are part of the team ( attorney, home inspectors, vendors) are in the loop of what is going on.
10. Questions come after closing, and we're there to help answer the questions. Because this is a relationship business we want happy clients who will refer us to their friends and family. Keeping you informed about what is happening in the market, or neat new trends, just makes your values stronger.
Wednesday, June 18, 2008
VA GIVES VETERANS MONEY TO PAY FOR ELDER CARE SERVOCES AT HOME
"VA GIVES VETERANS MONEY TO PAY FOR ELDER CARE SERVICES AT HOME."
Under the right conditions, about 33% of all seniors in this country could qualify for up to $1,843 a month in additional income from the Department of Veterans Affairs. This money can be used to pay just about anyone to provide elder care services at home. As an example, these funds can be used to pay children, other relatives, friends, home care companies, or domestic workers. Adequate documentation and evidence must be provided in order to receive money from VA for these services, particularly the services provided by family members or other non-professional providers. The National Care Planning Council furnishes detailed instructions and training to those practitioners who wish to help veteran households receive this valuable source of revenue to pay for home care.
Please go to the following URL for the entire article and previous articles: (Either click on the link or copy the address into your browser.) http://www.planforcare.org
or copy and paste the following into your browser http://www.planforcare.org
Thomas Day, Director
National Care Planning Council
P.O. Box 1118
Centerville, UT 84014
800-989-8137
Under the right conditions, about 33% of all seniors in this country could qualify for up to $1,843 a month in additional income from the Department of Veterans Affairs. This money can be used to pay just about anyone to provide elder care services at home. As an example, these funds can be used to pay children, other relatives, friends, home care companies, or domestic workers. Adequate documentation and evidence must be provided in order to receive money from VA for these services, particularly the services provided by family members or other non-professional providers. The National Care Planning Council furnishes detailed instructions and training to those practitioners who wish to help veteran households receive this valuable source of revenue to pay for home care.
Please go to the following URL for the entire article and previous articles: (Either click on the link or copy the address into your browser.) http://www.planforcare.org
or copy and paste the following into your browser http://www.planforcare.org
Thomas Day, Director
National Care Planning Council
P.O. Box 1118
Centerville, UT 84014
800-989-8137
Wednesday, June 11, 2008
All Together Now
Here are all the members, together and discussing how we can best utilize this blog. Our purpose, to serve the public with information they will find useful and informative for all their real estate needs!
It's amazing how much technology is available and yet how complex it is to fully use each type efficiently. In this space, you will be able to see how 9 Realtors view the market today and tips we might have to handle this unusual market. Please enjoy and call if you have any questions.
It's amazing how much technology is available and yet how complex it is to fully use each type efficiently. In this space, you will be able to see how 9 Realtors view the market today and tips we might have to handle this unusual market. Please enjoy and call if you have any questions.
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