Top Ten Short Sale Questions AnsweredNumber 10I can't make my house payments, but I do have an ability to pay back all or part of the negative equity. Also, I want to preserve my credit score...is a short sale right for me?Probably, not. In cases where the seller can pay back all or part of the negative equity (usually to the 2nd lien holder), it makes sense for them to work out a repayment plan. The lender will then release the lien and allow the home to close. Number 9If I pay mortgage insurance and default on my loan, why wouldn't that cover the deficiency amount?The mortgage insurance is not there for your protection, just the mortgage lender's.Number 8Do I have to have my home "Approved" by the lender prior to offering it for sale as a short sale?No. Technically speaking there is n... 04/03/2008

The following information is from www.yourillinoishome.com.  A great resource for home owners.How to Avoid ForeclosureIf you are a homeowner at risk of foreclosure you need to know there are programs and services that can help. It's important to act quickly and before you are three months delinquent on your mortgage payment, says Beth Llewellyn, CEO of the Partnership for HomeOwnership and a U.S. Housing and Urban Development (HUD)-certified homeownership counselor with over 12 years of experience helping lower-income families achieve homeownership. "Foreclosures in Illinois are a nine-month judicial process but after 90 days the lender will turn the delinquent loan over to foreclosure attorneys and then the fees really start to mount up," says Llewellyn. "The key is to not ignore lette... 03/27/2008

How to get a loan in a tight credit market. While there is home financing available for people with good credit, the options are fewer if your credit score is less than stellar.  If someone has a credit score below 680, they will pay more private mortgage insurance on loans above 80 percent LTV.  Below 620 it's going to be extremely difficult. Mortgage insurance companies that typically do loans for people with lower credit scores aren't offering it without extremely high monthly premiums. If the client has face-to-face counseling, most mortgage insurance companies will lower the cost of private mortgage insurance by half or two-thirds." Homebuyers should interview lenders like they do when shopping for a car. Ask, what are your estimated closing costs? What is your PMI rate if I have a... 03/27/2008

Larger Loan Amounts. Lower Interest Rates.Now Available On FHA Loans.Good news! Qualified customers can now borrow loan amounts from $417,000 and up to $729,750 without paying a typically higher jumbo interest rate. The new FHA loan amounts are only available in certain metropolitan areas.That means, for a limited time, purchasing or refinancing a home:• Is more possible• For more people• In more metropolitan areas.If you've been waiting for a better time to explore your options -it's here!Get More Details Right AwayFind out soon if one of our government-insured FHA loans is right for you.  Contact me today for a free no obligation buyers consultation.About the author:  Cheryl Bowers is a Chicagoland Area Residential Real Estate Expert, who can assist you with the purchase and/or sale o... 03/27/2008

Economist suggests $5,000 home-buyer tax credit to spur homeownership.  In the March Real Estate Insights, NAR (National Association of Realtors) chief economist Lawrence Yun, analyzes several federal plans proposed to curb foreclosures and stimulate the housing market. Yun proposes a homebuyer tax-credit of $5,000 tax credit (which currently exists in Washington, D.C.), which would cost the federal government $40 billion. Yun says: "A reversal in the weakness in the housing market, which has been subtracting about one percentage point off GDP growth, can add $40 billion to the U.S. Treasury, essentially offsetting the cost of the tax credit. If the initial $40 billion cost is hard to swallow, how about a more targeted tax credit for only first-time home buyers? That would cost the gove... 03/26/2008

February home sales activity improved slightly from January as we gear up for the spring market.  According to the IAR's (Illinois Association of Realtors) latest report, total home sales were up 15.1 percent in February 2008 to 6,832 sales compared to January 2008 sales of 5,938; sales were down 22.9 percent from February 2007 totals of 8,860. The Illinois median price in February was $181,265, down 5.6 percent from $192,000 in February 2007. "REALTORS are seeing some signs of the spring market with increased activity and interest from potential buyers. If people have good credit, their finances in order, and are looking for a home for the long haul, they should get in the market with confidence," said IAR President Kay Wirth. "Conditions in many local markets are good and present oppo... 03/26/2008

My dad as a Motorcyclist is aware of his surrounding at all times. Below is a test that he's passed on to me. He even failed the test. Click to take this test. As good as I think I am in regards to Motorcycle awareness I failed the test. Yes, I failed. Oh No. How will you do? Take it to see. About the author: Cheryl Bowers is a Naperville, Plainfield Area Residential Real Estate Expert, who can assist you with the purchase and/or sale of real estate in Naperville IL., Plainfield IL., or any place in the country. Cheryl has created a team of professionals throughout the Plainfield, Naperville IL. area and the country to ensure that you enjoy a smooth transition to your new area. Please visit www.CherylBowers.com for your real estate needs. Please give me a call if you have questions abou... 03/23/2008

Fed steps in and cuts again Bernanke pulls out all the stops to ailing economyThe Federal Reserve significantly cut rates for the sixth straight time since September, this time cutting 75 basis points. This follows a busy weekend where the Fed also extended its hand to Wall Street, bailing out Bear Stearns with JP Morgan Chase. While rate cuts look good at face value, you need to prepare for what's to come. Why did they do this? The Fed wants you to start spending money and wants to boost consumer and Wall Street confidence. Consumers are under stress with increasing consumer prices and a slowing housing market. Wall Street banks have been under stress from mortgage defaults and their impact on corporate balance sheets. How does this impact you? Fed rate cuts are inflationary. Since the... 03/23/2008

 How to get the perfect hard boiled egg.Start by placing the eggs in an empty pot.  Then fill with cold water until the water is about an inch over the eggs.  Place pot on stove and turn to high heat to boil eggs.  When the water begins to boil, turn down burner to medium heat.  Boil for 10 minutes.  Once the eggs have finished boiling, remove the eggs from boiling water and place them in a bowl of ice water.  Let the eggs sit for 3-4 minutes and remove from ice water.  Now you have the perfect egg......and the yolk will not turn green!   About the author:  Cheryl Bowers is a Chicagoland Area Residential Real Estate Expert, who can assist you with the purchase and/or sale of real estate in Plainfield, Naperville, Aurora Illinois or any place in the country. Cheryl has created a team of ... 03/22/2008

  Timing Is Everything: When And How To Move In the next few months making a move can become increasingly more complicated say industry experts. "June to September is really known as the high season for the moving industry," says John Bisney, Director of Public Relations for the American Moving and Storage Association (AMSA). It's a popular time because kids are out of school and people are trying to get the move done before the children have to return to class. "So if you can avoid moving during June to September you're probably going to get better service and have more options," Bisney. However, Bisney says, "If you do have to move between June to September, then it's better to move in the middle of the month and the middle of the week as opposed to doing it at the end of the month wh... 03/21/2008

If I pay mortgage insurance and default on my loan, why wouldn't that cover the deficiency amount?The mortgage insurance is not there for your protection, just the lender's. If you are paying PMI (private mortgage insurance) it is there to protect the lender in case you default on your loan. You can usually get the PMI removed after you have enough equity in the home. The lenders will not remove this for you. It is your responsibility to get this removed. Afterall, why do you want to be paying PMI if you don't have to. It doesn't protect you, it protects the lender.For more information on PMI, contact me. If you are a first time buyer, please contact me and we'll set up a buyers consultation to discuss buying a home. Cheryl Bowers is a Naperville, Plainfield Area Residential Real Estate... 03/21/2008

Did you know that I can help you find a home to rent?In the multiple listing service, there are rentals available.  Contact me today and we will work together to find a home for you to rent.  Whether you want a month-to=month lease or a one year agreement, I'll be sure to find you something.  With so many homes on the market today, many home owners are looking for other options like renting out there homes."That sounds great, Cheryl, but I can't afford to pay you!"No problem, as the renter, you are not responsible for my compensation.  The landlord would be responsible and they are already aware of this.In today's market, there are many different reasons why people are renting.  Contact me today, and I will address your individual needs.  You can be moving into your rental home in as li... 03/21/2008

The economy is going through a rough patch, and the stock market is well below its all-time high. Mortgage rates have been dropping since the end of last year.  For homeowners, that can mean only one thing: It's time to think about refinancing your mortgage.If you can save on the interest you're paying, then it's time to do a mortgage refinance.  For some homeowners whose adjustable-rate mortgage (ARM) interest rates are rising, the low interest rates on 30- and 15-year fixed-rate mortgages offer an opportunity to refinance into something that's a known quantity.  If you have a mortgage that's going to adjust, it's important to get into a fixed-rate program now.  In Freddie Mac's latest survey of mortgage rates, a 30-year fixed-rate mortgage averaged 5.72 percent with fees totaling 0.4 ... 03/21/2008

Will I have to pay capital gains taxes if I sell a property as a short sale?No. If your bank suggested that, they are ridiculous. Capital gains would indicate that you are in some way "better off" financially because of money you have made. In a short sale, you lose and owe money. The only thing the bank could possibly mean is that the deficiency will be reported as 1099 income and you will have to pay taxes on that, but not as capital gains. 03/21/2008

If you are relocating to the Plainfield, Naperville, Aurora or Bolingbrook area, please call LaNita at 630-341-1545 or visit www.lanitacates.com. Having worked with families relocating to these areas, LaNita is the obvious choice to help you find your new home. As a full-time licensed realtor serving Naperville, Plainfield, Aurora, Bolingbrook and the Joliet IL (illinois) real estate market, LaNita is the type of agent that will work with you from the beginning all the way to sitting with you at the closing table. 03/20/2008

How does a realtor profit from a short sale?When formally requesting a short sale commitment from the bank, realtor commissions are usually included if a realtor was involved in the deal. The bank may counteroffer to lower the commission. Realtors can also "hunt" for short sales by talking to clients that have had their homes listed for a long time with no success. The realtor can explain the short sale process and help the owner negotiate with their lender to get it sold and the realtor gets their commission.Contact me today so we can evaluate your individual situation. 03/18/2008

I owe more than my home is worth. Am I eligible for short sale or is my only option foreclosure or bankruptcy?Always consult your lender as to what your options are. The options usually are: a short sale, deed-in-lieu of foreclosure (basically an accelerated voluntary surrender), and foreclosure. The banks like to prevent foreclosure when at all possible. They've even been known to lower people's rates and/or payments because of all the new defaults in the past few years.  Either way, your first stop should be to get information from you lender on what options they provide.Contact me for an assessment of your costs.  We can go through the fees involved in selling your home. 03/18/2008

If I pay mortgage insurance and default on my loan, why wouldn't that cover the deficiency amount?The mortgage insurance is not there for your protection, just the lender's.  If you are paying PMI (private mortgage insurance) it is there to protect the lender in case you default on your loan.  You can usually get the PMI removed after you have enough equity in the home.  The lenders will not remove this for you.  It is your responsibility to get this removed.  Afterall, why do you want to be paying PMI if you don't have to.  It doesn't protect you, it protects the lender.For more information on PMI, contact me.  If you are a first time buyer, please contact me and we'll set up a buyers consultation to discuss buying a home. 03/18/2008

Fed Plan Lifts Mortgage MarketsTuesday, the Fed's surprise announcement of a new $200 billion lending facility led to a 400 plus point rally in the Dow, the biggest one day percentage gain since March 2003. The effect on mortgage rates was also favorable. The newly available funds will make it more appealing for financial institutions to borrow money from the Fed, which is expected to increase the demand for mortgage backed securities. Mortgage markets should benefit, and the spread between mortgage rates and Treasury yields narrowed significantly, reversing the trend from the prior week.Mortgage rates fell significantly during the week, reversing a similar sized rise the prior week. That said, not all areas of the mortgage market benefited equally last week. Demand for securities backe... 03/17/2008

Will I still have to pay property taxes if I do a short sale?Someone will have to pay the property taxes in a short sale.  It's just a question of who?  Whether it is the property owner or the lender depends on the policies and specific agreements negotiated during the short sale.  Do not take a short sale on by yourself, it's unnecessary.  Contact me today.  03/13/2008