Short Sales and Foreclosure Resource SFR

I have just been approved with the Short Sales and Foreclosure Resource (SFR) certification program through the National Association of Realtors.

http://www.realtor.org/press_room/news_releases/2009/08/helps_short

My hope is that this will help me to serve my clients in new and better ways.

FHA 90 Day Anti-Flipping Rule Suspended!

Important news for all real estate investors! HUD just announced that, effective February 1, 2010, they are suspending the FHA 90 Day Anti-Flipping Rule.

With certain exceptions, such as HUD-owned and bank-owned properties, FHA currently prohibits insuring a mortgage on a home owned by the seller for less than 90 days. However, beginning Feb. 1, buyers may use FHA-insured financing to purchase properties resold through private developers and investors, providing access to a broader array of recently foreclosed properties.

Under the temporary waiver, all transactions must be arm's-length. In cases in which the sales price of the property is 20 percent or more above the seller's acquisition cost, the waiver will only apply if the lender meets specific conditions.

For more information about these changes please visit the HUD website.

When will Downers Grove home prices go up?

Many buyers and sellers are asking me when home prices will return to the record prices seen during 2005-2006. Moodys and Fiserv have actually studied this point. The answer is different for every state. Some states will rebound as early as 2014, but for Illinois residents the wait will be longer. The estimate is that our pricing will return to 2005-2006 levels somewhere from 2018-2022. If you are thinking of selling, do it now! Prices could be lower when more foreclosures hit the marketplace. If you are thinking of buying, just remember, you are getting record low prices now and great interest rates. Buy now before rates start to go up next spring!

Buying a Foreclosure

Illinois is about 10th in the nation in foreclosed properties, so hey, why not buy one and get a great deal on a new home or investment property?



Just remember these points when looking at bank owned properties, also called REOs.



Sales are "As Is."

Properties will need repairs and may be missing plumbing, appliances or even a furnace. Even the nicest looking homes will have problems, because they are vacant and have been abandoned.

It's smart to pay for a home inspection.

Forget what they say on HGTV, do not expect to flip the property for a great profit.

Do not expect bargain basement prices. The banks know what these properties are worth and many receive multiple offers.

Financing may be difficult if the property is in extremely poor condition.