Deerfield IL Short Sales

Short Sales

What is a short sale?

A Short Sale is when the lender agrees to accept less than what’s owed on a mortgage that is secured by real estate via a sale of the property to a third party. With this agreement, the lender releases the borrower from the mortgage, thereby preventing foreclosure.

What are the benefits of a short sale to the homeowner?

The seller wins by avoiding foreclosure by selling their home before the foreclosure auction even if they owe more than its worth. If they were to sell the house the traditional way with a realtor without a short sale, typically they would have to bring tens of thousands of dollars to the closing to sell their own home. This is not an option for them because they are in foreclosure and don’t have any money. The lender typically will pay closing costs & commissions in a Short Sale to avoid foreclosure.....the Banks do not want to own your home.

What are the benefits to the lender?

The lender wins because they are getting some of their bad debt paid off. You see, when a lender has delinquent loans on their books, it affects how much money they can lend out in new loans because they are regulated by the FDIC. So the more bad loans they can get rid of, the more good loans they can then go ahead and acquire.
Also by taking a home to auction, they can lose tens of thousands of dollars.
So it’s a huge cost savings to them to do a short sale before the auction occurs.

What are the benefits to the buyer?

The buyer can get a great price, sometimes below market value.

Eric is a Certified Distressed Property Expert and also has his NAR Short Sales and Foreclosure Resource Certification. He has the knowledge & training to help.

For more detailed information on short sales please email or call 847.337.7090

Thank You,

Eric P. Egeland
RE/MAX SUBURBAN
847.337.7090
NorthShoreREO.com



Primary IL Service Areas: Libertyville 60048, Wheeling 60090, Deerfield 60015, Buffalo Grove 60089, Vernon Hills 600061,Lincolnshire 60069, Chicago Lincoln Park 60614 Lakeview 60657, West Town 60622, Bucktown-Wicker Park 60622, Long Grove 60047, Arlington Heights 60005, 60004, Prospect Heights 60070, Palatine 60067, 60074, Lake Zurich 60047, Lake Forest 60045, Northbrook 60062, Rolling Meadows 60008, Elk Grove Village 60007, Mount Prospect 60056, Highwood 60040, Libertyville 60048, Mettawa 60048 60045, Green Oaks 60048, Highland Park 60035, Glenview 60026 60025, Mundelein 60060, Fort Sheridan 60037, Des Plaines 60016 60018, Park Ridge 60068, Schaumburg 60173, Lake Bluff 60044, Barrington 60010 60011, Wilmette 60091, Winnetka 60093, Hoffman Estates 60179, Golf 60029, Niles 60714, Morton Grove 60053, Grayslake 60030, Gurnee 60031,Kenilworth 60043, Skokie 60077, Round Lake 60073, Round Lake Beach 60073, Kildeer 60047, Hawthorn Woods 60047, Deer Park 60047, Prairie View 60069, Glencoe 60022, Kenilworth 60043, Inverness 60010, Wauconda 60084, Johnsburg 60050, Schaumburg 60195, Algonquin 60102, Lisle 60532, Wadsworth 60083, Elmhurst 60126, Crystal Lake 60012, Lake in the Hills 60156, Antioch 60002, Saint Charles 60174, Downers Grove 60515, Hinsdale 60521 60522, Western Springs 60558, Clarendon Hills 60514, La Grange 60525, Frankfort 60423, Mokena 60448, Wheaton 60187, Bannockburn 60015, Riverwoods 60015, Burr Ridge 60527, Lake County, Cook County, McHenry County, DuPage County



If you need service in an area that is not listed above please contact us & we may be able to accommodate.

Egeland earns NAR's SFR designation

Eric P. Egeland earns NAR Short Sales and Foreclosure Certification
Buyers and Sellers Benefit from REALTOR® Expertise in Distressed Sales

02/22/2010

Eric P. Egeland with RE/MAX SUBURBAN has earned the nationally recognized Short Sales and Foreclosure Resource certification. The National Association of REALTORS® offers the SFR certification to REALTORS® who want to help both buyers and sellers navigate these complicated transactions, as demand for professional expertise with distressed sales grows.

According to a recent NAR survey, nearly one-third of all existing homes sold recently were either short sales or foreclosures. For many real estate professionals, short sales and foreclosures are the new “traditional” transaction. REALTORS® who have earned the SFR certification know how to help sellers maneuver the complexities of short sales as well as help buyers pursue short sale and foreclosure opportunities.

“As leading advocates for homeownership, REALTORS® believe that any family that loses its home to foreclosure is one family too many, but unfortunately, there are situations in which people just cannot afford to keep their homes, and a foreclosure or a short sale results,” said 2009 NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth. “Foreclosures and short sales can offer opportunities for home buyers and benefit the larger community, as well, but it’s extremely important to have the help of a real estate professional like a REALTOR® who has earned the SFR certification for these kinds of purchases.”

The certification program includes training on how to qualify sellers for short sales, negotiate with lenders, protect buyers, and limit risk, and provides resources to help REALTORS® stay current on national and state-specific information as the market for these distressed properties evolves. To earn the SFR certification, REALTORS are required to take one core course and three Webinars. For more information about the SFR certification, visit www.REALTORSFR.org or call 1-877-510-7855.

Expanded Homebuyer Tax Credit

Provisions of the new tax credit include:

• Extends the $8,000 first-time Homebuyers Tax Credit and creates a new $6,500 tax credit for
other qualifying buyers.

• Homebuyers with building contracts as of April 30 qualify for the credit so long as they close
the transaction by July 1.

• Available to homebuyers with incomes of up to $125,000 for a single return or $225,000 for a
joint return, with a phase-out on income up to $20,000 higher.

• Not available for homes costing over $800,000.

• Homebuyers who owned a home in the previous three years are eligible if the home they are
leaving has been used as a principal residence for five consecutive years in the last eight.

• Provides authority to the IRS to provide greater oversight while processing the return and
requires that the taxpayer claiming the credit be 18 or older and fully document qualification.

• Members of the military, military intelligence and foreign service who have been deployed
overseas for 90 days or more in 2008 or 2009 can claim the credit through April 30, 2011.


Eric P. Egeland
RE/MAX UNITED
DeerfieldsAgent.com

August

Sales of existing U.S. homes unexpectedly fell last month for the first time since March.

Purchases dropped 2.7 percent in August to a 5.1 million annual rate, while the median priced dropped 12.5% from August 2008.

As can be seen in the data below the lower end of the market (much of which is distressed) has seen the most activity Year-Over-Year, while the mid-upper end of the market has seen sharp declines in activity.

August Regional Existing Home Sales by Price Class

Existing Single Family Home Sales Year-Over Year Percent

REGION	$0-100K	$100-250K	$250-500K	$500-750K	$750-1M	$1M-2M	$2M+
Northeast	8.8%	14.4%	0.0%	-13.4%	-18.4%	-23.7%	-54.3%
Midwest	3.8%	2.2%	-8.1%	-32.2%	-27.5%	-31.5%	-45.7%
South	20.9%	-0.2%	-11.0%	-12.5%	-6.8%	-17.3%	-47.7%
West	152.3%	10.8%	-16.6%	-10.9%	-33.6%	-20.9%	-8.0%
U.S.	20.9%	4.9%	-9.6%	-14.7%	-22.5%	-22.1%	-39.1%

August Regional Existing Home Sales by Price Class

Existing Single Family Home Sales Sales Distribution (August 2009)

REGION	$0-100K	$100-250K	$250-500K	$500-750K	$750-1M	$1M-2M	$2M+
U.S	20.9%	48.3%	23.1%	5.3%	1.3%	1.0%	0.2%

Eric P. Egeland
RE/MAX UNITED
DeerfieldsAgent.com

Riverwoods Vacant Lot

Market Recap

Many pundits were predicting a second wave of foreclosures headed our way in the second half of the year, as banks tried to unload homes they can’t refinance. But for now, at least, the big wave of bank-owned properties appears to have crested. According to Foreclosures.com, foreclosures dropped 11% nationally in the second quarter of 2009 to 205,000 compared to 231,000 in the first quarter of 2009. Even more encouraging, June’s foreclosure numbers reached record lows for the year.

More good news on housing was dispensed by Clear Capital, which noted that for the first time since 2006, the nation posted positive quarter-over-quarter price returns in the second quarter of 2009, according to its July Home Data Index Report released last Thursday. Fueled by strong seasonal spring sales in the Midwest , which had a price increase of 5.3% over the first quarter of 2009, the overall U.S. price growth increased by 1.7%.

It's obvious that people are buying more homes – foreclosures or otherwise. The Mortgage Bankers Association released its Weekly Mortgage Applications Survey for the week ending July 3, and new loan applications increased 10.9% from the previous week. Mortgage rates remain low, and are actually dropping. The benchmark 30-year, fixed-rate mortgage fell 11 basis points to average 5.59% last week, according to the Bankrate.com national survey of large lenders, while the benchmark 15-year, fixed-rate mortgage fell 14 basis points to average 4.93%. The drop should assuage concerns among many potential borrowers that they missed the boat.

Eric P. Egeland
Broker Associate
RE/MAX UNITED
DeerfieldsAgent.com

Rate Outlook

Last week's drop in mortgage rates was a welcome relief, and you would think that more relief should be forthcoming. After all, inflation appears to be a dead issue, given recent data on producer and consumer prices. Inflation and interest rates are highly correlated: When one falls, the other usually falls in tandem.

But there is more to the story than inflation. All interest rates are determined relative to risk-free market interest rates, with short-term Treasury bills serving as a proxy. But most interest rates are not risk-free. Mortgages rates are certainly not risk-free, which is why they are higher than Treasury bill rates. What's more, mortgage rates are heavily influenced by rates on mortgage-backed securities (MBS). MBS rates, in turn, are heavily influenced by yields on Treasury bills, notes, and bonds.

And there is the rub. Treasury securities prices tumbled last week after the government announced $104 billion in debt auctions. As rates on Treasury securities increase to attract buyers, there is a crowding out effect, because Treasuries compete with other debt instruments for buyers. If Treasury securities must raise their yields to attract buyers (which happened last week), then so do most other debt securities; hence, a possible increase in mortgage rates.

We can't be sure what impact this crowding effect will have. Rates could go higher, but they could go lower too, particularly if the Federal Reserve continues to implement its $300-billion program to create demand and keep a lid on rising rates. But why chance it? Thirty-year fixed-rate loans averaging between 5.5% to 5.75% are still a very good deal, as are the deals found on most existing and new homes on the market.

Eric P. Egeland
Broker Associate
RE/MAX UNITED
847.337.7090
DeerfieldsAgent.com