Lil' Buddy's Blog: The Trouble with Those "Designer Dogs" - Things You Should Know!

THE CHICAGO IL REAL ESTATE MARKET, AND OTHER THINGS CHICAGO, FROM THE POINT OF VIEW OF A LITTLE WHITE DOG!

Good Morning, Dogs & Humans!  Figured I'd catch up on the Business Section of the Chicago Tribune before the phones got too crazy this morning.

Are you a "Designer Dog?"  You know, a combination of two dog breeds, with the goal of making you a better, and more human-friendly dog in general.  Humans - perhaps you know a "Hybrid Dog" or two, or even have them living in your home.

For years now, several specific breeds have been combined for their non-shedding coats, there resistance to certain dog diseases, and the fact they might be hypo-allergenic (to humans, that is).

You'll find these designer combined breeds all over - whether in the tony Chicago Gold Coast Neighborhood, the North Side Neighborhoods of Lincoln Park or Ravenswood, or the affluent Chicago Suburbs of Oak Park, Naperville, or Winnetka.

Humans buying these designer hybrid dogs pay a lot of money for them - often in excess of $3,000!  The big designer breeds combine we Pekingese and Poodle, to create a Peke-a-Poo.  Or a Labrador Retriever and a Poodle, to make a Labra-doodle.  Or a little pug with a beagle - voilà, a Puggle!

Lately, however the Humane Society of the United States has become concerned.  Many of these designer pets are raised at exploitive, unsanitary "Puppy Mills," they worry.  The dogs here may be or are likely to become ill, or mis-tempered.

What's a "Puppy Mill"?  The Humane Society defines one as any operation-licensed or unlicensed-where animals are continually confined, kept solely for breeding and socially or physically neglected. The Society estimates there are about 10,000 such puppy mills nationwide.

As demand for special pets in major cities explodes, many rural puppy breeders have popped up to satisfy these mainly-affluent buyers. 

Kathleen Summers, Deputy Director of the Humane Society's "Stop Puppy Mills" campaign, warns puppy buyers to closely investigate pet stores or Internet operations selling pets.  Some, but not all, keep their bred animals in less-than-acceptable conditions.

In my blog post at BlogChicagoHomes.com last night, I reviewed a couple of examples of humans encountering considerable health issues with their new designer-bred puppy. 

Tracy Mattes of the Chicago Suburb of Woodridge IL found her cockapoo, Jake, at a suburban pet shop three years ago. Within a few months, however, Mattes noticed her puppy had begun to suffer a number of serious, and very costly, health problems. Jake developed severe allergies, a juvenile cataract, a digit on his paw that needed to be removed and a kneecap that popped out of place.

"His veterinarian bills are through the roof," Mattes said.

On top of Jake's nearly $700 price tag charged by the pet shop, Mattes has spent upwards of $6,000 in surgeries and other specialized vet care. Today, Jake has to take two medications each day and requires at least once-monthly checkups.

I found another example of a puggle owner in Chicago Suburban Indian Head Park IL who was told her pug/beagle puppy would grow to no more than 30 pounds.  Today, her dog Rocky checks in at 51 pounds, and he hasn't swallowed a Porterhouse steak in his entire life!

According to Yrval Nir, a dog and cat vet in the Western Suburbs of Chicago, "I've heard of the breeding of dogs that don't drool."    That's hard to believe, he continued.

The veterinarian strongly suggested that new puppy buyers consult their vet before buying any new puppy.  Even the most meticulous breeder, he says, can't exactly predict a parents' offspring.  "It's just like saying the kid is going to be the parents," he said.

That has rarely worked for humans, and it rarely works for us dogs, too!

You want a great dog?  Why not a cute lil' Pekingese, like me? 

(BTW . . .  if you happen to find one, and she's female - can you send her by - some nights, I get a bit lonely, if you know what I mean!)

Check out my BlogChicagoHomes.com post yesterday for more information, as well as a link to a story and video by Melissa Patterson in last Wednesday's Chicago Tribune.

Enjoy the weekend, you dogs!  Let's bark again next week!

YOUR ACE REPORTER ON FOUR PAWS,

BUDDY HOLLY MOSS & DEAN'S TEAM CHICAGO

SCARY CHICAGO AREA SALES NUMBERS FROM LAST QUARTER!

Good Morning, AR!

It seems, sometimes, when things begin to "feel" like they are turning around here in the Chicago Real Estate Market, the realty of the numbers hits you in the face saying "Not So Fast!"

Although, through our own personal experience, we're seeing interest and activity increase on our City of Chicago and Chicago Suburban listings over the last few weeks, the stats for the Chicago Metro Area remain somewhat grim.

Compared to June of last year, housing resales in the nine-county Chicago Metro Area were off 27.9% at the end of June, 2008, to a total of 7,656 units sold.  The median sales price of homes and condos in the area fell 3.3% over the past year - to its current $256,000 median, from its $264,700 median price one year ago.

Figures for home and condo median sales prices in Cook County itself (the City of Chicago is wholly in Cook County) were off a more modest 0.9% over the past year.  Last month, the median Cook County home and condo price was $274,500, versus $277,000 in June, 2007.  (Cook County includes the City of Chicago). 

"Economic factors have weighed heavily on home sales activity in Illinois this summer," said Kay Wirth, President of the Illinois Association of Realtors. "Low consumer confidence, higher gas and food prices, plus turmoil in the financial markets and a tighter credit market have kept some would-be buyers on the sidelines."

There are large market variations state wide, and even between neighborhoods and communities.  Downstate Macon and Peoria Counties experienced resale growth over the past year - 28% and 11.3% respectively.  Kendall County, on the distant edges of the Chicago Suburban Area, showed 5.4% growth in resales between June, 2007 and June of this year.

Within Chicago, activity on our Lincoln Park and Chicago Loop-area Listings has gained in strength over the past few weeks - but interest in more-distant neighborhoods and suburbs remains somewhat sluggish.

Geoffrey J.D. Howlings, Director of the Regional Economics Applications Laboratory of the University of Illinois, predicts continuing declines in home sales during the Third Quarter, 2008, compared with the same period last year.  He expects "price declines comparing year-to-year will be more moderate in Chicago at around 3.5 percent and 5.5 percent in the state."

The monthly average commitment rate for a 30-year, fixed-rate mortgage for the North Central Region of the U.S., including the Chicago Metro Area, was 6.38 percent last month, up 0.34 points from the 6.04 average rate the previous month, according to the Federal Home Loan Mortgage Corporation (Freddie Mac). 

However, the best rates are only available to those with absolutely stellar credit and asset credentials, and larger down payments, at or exceeding 20%.  Borrowers with modest credit and less-than-20% down are often assessed a higher interest rate.  They might also have to pay additional loan fees, and/or closing points.

Market data comes from local Multiple Listing Service Data, and compiled figures from the Illinois Association of Realtors and Chicago-Area and Downstate IL Realtor Associations.

For more info, check out our post from last night @ BlogChicagoHomes.com.  Here, you'll also find a link to Margaret O'Brien's story in yesterday's Chicago Tribune.

DEAN & DEAN'S TEAM CHICAGO

RED LIGHT CAMERAS IN CHICAGO - The Game is Rigged!

You've heard about Photo Enforcement Cameras, haven't you?  Have you been pinched by one?  If you have, my guess is the infraction was minor - and, most often, your defense unsuccessful!  The Chicago System takes the cake, however, from what I have heard. 

Read on, and follow the link below, to learn more about my own recent experience fighting - without success - the Red Light Camera System here.

There will be 130 Automated Red Light Enforcement Camera Systems in the City of Chicago by the end of this year, across the city.  The cameras, as you know, take several still pictures of an alleged red-light violator - approaching the intersection, making the illegal turn, showing the red-light status, as well as a close up of the offending car's plate.

Here in Chicago, the cameras send the ticket to the REGISTERED OWNER of the vehicle - not necessarily the driver.  Several weeks after the supposed infraction, the ticket comes in the mail - often surprising the registered owner/recipient.

The cameras record the exact vehicle speed (to one-tenth MPH) during the entire process, and allow precise timing of how long after the light turned red did was the driver in the intersection, as well as the duration of the preceding yellow light.

Some states, including Minnesota, prohibit the use of Red Light Cameras unless the driver can be seen in the photography.  Not so in Illinois, however.  Here, the cameras photograph the car, but the driver is not to be seen.  This concept passed review by the Illinois Supreme Court several months ago.  Their decision - the OWNER of the vehicle is responsible for the behavior of any driver he or she allows behind the wheel of any vehicle they might own.

Here's the rig here in the City of Chicago -

Two rigs, actually!

First, virtually any defense against the alleged violation is nearly always rejected.  You can't appear before an Administrative Hearing Officer and complain about the unfairness of the system.  Or the nature of any alleged infraction.  Or even State of Illinois guidelines regarding things like warning signs prior to the intersection.  Most of these do not apply here in Chicago - a large city that has Home Rule Powers that may choose to omit such common-sense courtesies.

Second, those committing the most minor infractions of the law - a slightly rolling stop, with caution, at an intersection - are treated pretty much the same way, and face the same $100 fine, as a driver who blew right through the light!

City Officials may defend the system for reducing traffic accidents, and improving safety.  This might be the case - although there have been some instances of drivers actually getting rear-ended for stopping too quickly when they discover they are approaching a red-light camera intersection.  The real reason appears to be INCREASED REVENUE!

Cash-strapped Chicago will make in excess of $50 Million in 2008 from alleged red-light violators.  Many will not contest their violations.  And most would not have received their tickets from live Police Officers in judgment call situations.

I'm not a law breaker, mind you, nor a reckless driver.  But the system here makes me a little mad, and a bit frustrated.

See our post yesterday via BlogChicagoHomes.com for a few details from my recent Red Light Camera Violation Experience - and maybe a way to protect yourself.  Or, maybe not!

But, when you come to Chicago, look UP before you approach that intersection - because you never know what may be watching you!

DEAN & DEAN'S TEAM CHICAGO

WHITE HOUSE CHANGES COURSE ON HOUSING RELIEF BILL - Shows How Critical Quick Action May Be!

It appears imminent that the Federal Housing Relief Bill will become law within the next few days.  President Bush, originally opposed to the bill's Fannie Mae and Freddie Mac bailout provisions, signaled his acceptance on Wednesday, and the bill passed the U.S. House by a substantial margin, and is headed to the Senate.

Will the bill turn around the U.S. Housing Market overnight?  No, most likely.  But will it send a positive signal to those considering selling or buying their homes.  Possibly. 

For a relatively few distressed homeowners, about to face default and foreclosure, the bill might be a lifeline.  For others - first-time home buyers, for example, the tax-credit provisions might spur action.  How dramatically?  We'll have to wait and see.

A key provision of the bill would let the Federal Housing Administration back up to $300 Million in special loans to an estimated 400,000 homeowners who cannot afford their house payments.  The new loans would be safer, more affordable, and would offer lenders an additional equity share in the houses they mortgage, rather than a costly bank-owned foreclosed home.  Lenders would take a substantial discount on their original loan in order to set up this refinanced rescue loan, in conjunction with the FHA.  Distressed home owners would have to qualify under the plan

The new legislation also establishes tighter lending procedures for federally-sponsored loan backers and guarantors Fannie Mae and Freddie Mac.  It also $15 Billion in housing tax breaks, including a tax credit of as much as $7,500 for first-time home buyers. 

In a more controversial side of the Housing Bill, the U.S. Treasury Department would offer a virtually unlimited line of credit to Fannie and Freddie, or the power to buy stock in the two companies.  Investors are concerned this could dilute stock values of the companies, but supporters feel the lifeline is needed to prevent financial collapse of either or both of the giant mortgage companies.  Together, Freddie and Fannie back nearly one-half of the mortgage debt in the U.S. - roughly $5 Trillion in mortgages.

See our post today@ BlogChicagoHomes.com for more info, as well as a link to Julie Hirschfield Davis's story in yesterday's Chicago Tribune.

DEAN & DEAN'S TEAM CHICAGO

AT 10.25%, COOK COUNTY SALES TAX NOW HIGHEST IN U.S.! Clever Shoppers Find Way to Avoid It!

Coming to Chicago, or Suburban Cook County, near Chicago?  Bring lots of money!

Effective July 1st, our the combination of local, county, and state Sales Tax increased to 10.25%!  That's the highest of any big city in the country.

Sales Taxes increases were passed last Spring, to fill considerable budget holes for County Services, and Local Mass Transit.  Detractors of the Cook County portion of the tax increases point to what they consider a lot of "fat" in county government, which should have been trimmed to avoid the increase.  

Cook County Board President, Todd Stroger, disagrees.  In fact, his original proposal, thankfully defeated, called for a 10.75% sales tax in many parts of Cook County, the county that includes the City of Chicago.

As sales taxes increase in Cook County, however, so have the number of consumers finding legal ways around paying the increase.

The easy answer, for many, is The Internet.  Many online merchants only charge sales tax if they have a PHYSICAL PRESENCE here - a store, or a warehouse.  Thus, Chicagoans can purchase merchandise from Maine Clothing Merchant L.L. Bean and pay no sales tax.  Buying Land's End clothing and other merchandise - owned by Sears Holdings, headquartered in the Chicago Suburb of Rolling Meadows IL, is fully subject to the higher sales tax.

Technically, the State of Illinois assesses a 6.25% use tax on goods purchased outside of the state, but used here.  But the Illinois Use Tax is rarely enforced.  Autos, purchased in county or outside, always pay a reduced level of County and State Sales Tax.

Chicago area shoppers buying in physical retail stores, however, can often take advantage tax savings simply by driving a few miles away. 

Residents of the Chicago suburb of Hinsdale IL would pay the 10.25% higher Cook County Sales Tax on purchases from merchants on the Cook County Side of the community.  If they drive across County Line Road, and into adjacent Du Page County, however, the sales tax falls to a more-comfortable 7.25%.  That's a sizable $3.00 tax savings for every $100 spent- and it puts Hinsdale merchants on the Cook County side of town at a competitive disadvantage.

In Chicago Suburban Palatine IL, which abuts neighboring Lake County, Mayor Rita Mullins does much of her own shopping in the town of Lake Zurich, just over the Lake County Line.  Again, she saves a considerable 3% sales tax on her purchases.  These few dollars per shopping trip can really add up over a year's time, she contends.

Says Mayor Mullins, "It's another encumbrance to the working families' everyday life. There's the cost of gasoline. There's the sales tax. There's the rising cost of food. There are rising utility costs. ... When you combine all of it, how do working families and retired people cope everyday? In order to survive they have to make more and more cuts to their daily lives."

Mullins and other Palatine residents are so angry over Cook County's latest sales tax increase that they have threatened to secede from Cook County. Last week, the Palatine Village Council passed a resolution endorsing a bill in the Illinois Legislaturethat would make it easier for suburbs to do secede. Cook County President Stroger has said he wouldn't stand in the way of such a move, although it would cost the county millions of dollars in lost sales tax revenue. Most think the Palatine initiative has little chance of passage.

The new sales tax structure has left a patchwork of local sales tax rates in the Suburbs of Cook County.  Many communities, with lower municipal taxes, have combined sales tax rates ranging between 9 and 10 percent. 

Another beneficiary of the local increases in sales tax - the neighboring State of Wisconsin!  Sales taxes in most of Wisconsin are 5%- potentially saving Chicago Residents 5.25% on sales tax expenditures, and even those in Lake County a more modest, but significant, 2%.  This fall, some Wisconsin merchants are using billboards, radio, the Internet, and other advertising media to entice value-conscious shoppers to consider their neighbor state to the north for their "Back to School" shopping.

Throughout IL, taxes on food and medicine are considerably lower - 2% - and were not affected by the most recent sales tax jump.  Cars and trucks were also unaffected this time around, but local vehicle sales taxes always apply where the vehicle is being REGISTERED, not where it was actually PURCHASED.

See our post this morning @ BlogChicagoHomes.com for more info, as well as a link to Susan Chandler's story in the July 20th edition of The Chicago Sunday Tribune.

DEAN & DEAN'S TEAM CHICAGO

BUYERS DUMPING YOU? Use This Little Checklist and LOSE LESS!

Good Morning, All!

I've read a few posts, and also spoken to several less-seasoned agents in my office here in Chicago, that they are becoming frustrated with buyers who make them cart their families around, and then dump them - with nary a deal!

Over the years, our Team has developed a little seven-point checklist to prevent this from happening - or, at a minimum, reduce the instances of its occurrence.

If you like this, paste this on your wall.  If you have further thoughts, comments, suggestions, or additions, please share!

1.  ALWAYS CITO Buyer Clients (CITO means "Come Into The Office.")  Never show a bunch of houses without first starting out on YOUR OWN playing field.

2.  Show prospective buyers as much as you can ONLINE, in REAL TIME.

3.  Have the buyers pick out their TOP FIVE from what they have selected from your online session with them.

4.  ALWAYS require buyers to sign an EXCLUSIVE BUYERS AGENCY AGREEMENT.

5.  Show the houses in the BUYER'S PRIORITY ORDER - to increase the chances they will find the house they are likely to fall in love with FIRST.  (Buyers will still want to compare with other selected houses, but this "first selection" will serve as a proper reference point for the others that follow).

6.  Always check feedback IMMEDIATELY on each house you show - "Would you buy this one AT ANY PRICE?"

7.  Always trial close for writing an offer each day - subtly, of course - "Is there anything we have seen today you might want to put an offer together on?"

The objective here - show fewer houses, respect everyone's time, including your own - and maximize FOCUS on FINDING A HOUSE, not simply SHOPPING AROUND.

These work well for our Team here in Chicago.  To further discuss, let me know, and I will put you in contact with our Buyer's Specialist, Kathleen Weaver-Zech.  She's an ACE!

Let's hear from you!

DEAN & DEAN'S TEAM CHICAGO

Chicago IL Market Statistics Update - July 21, 2008

Good morning, AR folks!

Here's the latest Stat Summary on the Chicago Real Estate Market, based on data pulled yesterday evening, July 20, 2008 -

Some hopeful numbers this past week! 

While Active Listing Inventory continued stable over the past couple of weeks, Average Sales Price actually took an upturn, up a respectful 6.6%.  The number of Pending Sales and Closed Listings each see-sawed once again this week, falling somewhat since the last time we checked the stats one week ago.  

Average Market Time way up this week.  This might be an aberration, but, in any event, remains high.  Total Sales Volume stable versus last week, expected for a mid-month reading.

Absorption Rate, or average inventory turnover, again increased, by 1.8%, over the last week.  There is 28.71 months of active inventory, on average, in the North and Northwest Side Neighborhoods we serve in the City of Chicago!   Percentage of Sale Within Six Month (180 Days) was stable between the last two stats check readings.

Communities and clients we serve reside, or plan to reside, in the Chicago Neighborhoods of The Chicago Loop, The Gold Coast, River North, Lincoln Park, Lakeview, Uptown, Edgewater, North Center, Lincoln Square, Albany Park, Ravenswood, Wicker Park, and Bucktown. 

Also, these Great Chicago Neighborhoods: Logan Square, Rogers Park , West Ridge, Portage Park, Jefferson Park, Norwood Park, Sauganash, Edgebrook, and Edison Park.   Plus All Chicago Suburbs. 

SINGLE FAMILY, CONDOS, AND SMALL MULTI-UNIT PROPERTIES - NORTH SIDE OF CHICAGO, NORTH OF ADDISON STREET, WEST OF ASHLAND AVENUE

                             ACTV LISTINGS        JUST SOLD         CLOSED        EXPIRED

w/e July 21st                5,273                  51                        76                   42

w/e July 14th                5,237                  56                        80                   64

% CHANGE                    +0.7%              -8.9%                    -5.0%             -34.4%

CLOSED PROPERTIES DATA

                              AVG SALE PRICE     AVG DAYS ON MKT     TOTAL VOLUME   

w/e July 21st                $357,317               187 DAYS                  $27,156,094

w/e July  14th               $335,139               120 DAYS                    $26,811,150

% CHANGE                     +6.6%                       +55.8%                             +1.3%

THEORETICAL TIME TO CLEAR EXISTING INVENTORY (ABSORPTION RATE) -

w/e July 21st - LAST 12 MOS - 19.58   LAST 6 MOS - 20.05     LAST 3 MOS - 28.71

w/e July 14th - LAST 12 MOS - 19.16     LAST 6 MOS - 20.01    LAST 3 MOS - 28.19

PERCENT OF HOMES SELLING IN 180 DAYS - 

w/e July 21st- 25.18% (UNSOLD - 74.82%) 

w/e July 14th - 25.02% (UNSOLD - 74.98%)

 SOURCE: MIDWEST REAL ESTATE DATA LLC, AREA MARKET SURVEY DATA

Review our Chicago IL Real Estate Stats Pack Archive via our Team Blog Center - BlogChicagoHomes.com. 

Call our Team anytime for current trends in any Chicago Neighborhood or Chicago Suburb! 

DEAN & DEAN'S TEAM CHICAGO

COMING TO O'HARE AIRPORT, CHICAGO - A More "Revealing" Security Scan!

I don't want to sound like an old coot, but when I see some of the new things coming on the technology front, many things amaze me.

Now, in airport security, comes a scanner that can actually see through clothing!  Viewing test shots, the images look like an ultra-detailed, skin-surface x-ray, revealing bodily details, folds of skin, and, well - private parts you probably wouldn't want to reveal to a stranger. 

For privacy sake, facial details of the subject would be obscured.  Immediately after reviewing the detailed images, security officers will delete them.

It will also show weapons, and other prohibited items, in shades darker than your body will appear.

The new scan technology will be coming to O'Hare International Airport in Chicago, plus 8 other airports across the country, beginning this fall.  It will be used on randomly-selected travelers.  Those who refuse to be scanned by the new machine will have to submit to an old-fashioned frisk.

These new scanners are being rolled out as fear remains high that Al Qaeda-trained terrorist bombers will again use airplanes to attack the U.S.  According to Kip Hawley, of the Transportation Security Administration, small, powerful bombs attached to a terrorist's body, or camouflaged inside ordinary travel items, still represent the Number One Threat to security at airports.

"If despite all our best efforts we fail to keep a [would-be] terrorist off an airplane, at least we must make sure that suicide bombers cannot smuggle the explosives they need to cause a catastrophe past the airport checkpoint and onto the aircraft," said Hawley.

The ACLU, and other Civil Liberties Groups, fear the new, highly-invasive scanner goes too far.  "This technology literally demands that one go through a virtual strip-search and that all sorts of private information, such as medical situations like a mastectomy or a colostomy, be looked at by a screener for the privilege of being able to get on an airplane," said Ed Yohnka, spokesman for the American Civil Liberties Union of Illinois.

New scanners have already been tested with success at other airports across the country.  But its expansion to O'Hare increases the number of potential passengers who will be randomly selected for in-depth scanning.

Scanning under the new process takes only a few seconds.  Selected passengers would proceed to a scanning chamber about the size of a telephone booth, raise their arms over their heads, and place their feet on special markings on the floor. 

In addition to these new full-body scanners, additional new security equipment offer advances for scanning carry-on baggage, as well as the contents of bottles of liquid.

During the initial phase, the new scanning equipment will be set up in the O'Hare International Terminal, as well as the domestic terminals for American and United Airlines.  The full-body scanners use Radio Frequency Technology, as well as low-dose X-Rays, not believed harmful to the passengers being screened.

One controversial element of the process is who will view the full-body scanner images.  Plans call for the same security officers screening the images of all passengers, male or female.  Physical pat-downs, if required, would only be conducted by screeners of the same gender.

To minimize contact with passengers being screened, security officers checking the full-body images would be some distance away from the security checkpoints, in a remote, central location.  They will not have direct contact with the passengers being screened. 

See our post yesterday on BlogChicagoHomes.com for more details, as well as the full story in yesterday's Chicago Tribune by writer Jon Hilkevitch.

DEAN & DEAN'S TEAM CHICAGO

"HOPE" U.S. HOUSING BILL - Likely to Pass This Week - Benefits Some, But Not All!

The much-anticipated Housing Bill - "HOPE" - may become law as early as this week.  Its supporters believe the new legislation can help as many as 400,000 home owners, in Chicago and across the nation, in a short period of time.  However, there are some strings attached.

For lenders, the program will be a VOLUNTARY one.  Lenders, and their investors, who own defaulting mortgages will not be forced to allow all delinquent borrowers the opportunity to refinance.  Those that do agree, however, will be subject to considerable write-downs on certain delinquent loans.  The new maximum HOPE Loan Amount, insured by the Federal Housing Administration (FHA) will be 90% of today's market value of the subject property.

Lenders will also have to clear up any secondary liens and mortgages on the property before the HOPE loan can close.  These include any equity lines of credit and "piggyback" mortgages offered by other banks or lending institutions.

Potential borrowers of these new, FHA-insured loans must pass the following criteria -

1.  They must demonstrate a "lack of financial capacity" to pay their current mortgage, but they must earn enough income to make payments on a smaller, fixed-rate FHA loan. Their income-to-mortgage debt ratio must top 35%.

2.  They must certify that they haven't "intentionally defaulted" on their mortgage or on any other debt to refinance into a HOPE loan. They must also affirm that they are telling the truth about their financial status, and have never been convicted of a fraud. Anyone who lies on their application will be subject to penalties, including up to five years in prison.

3.  They must agree to use and occupy the refinanced house as their principal residence, and not own or purchase any additional houses or investment property.

4.  They must pay a 3% Mortgage Insurance Premium to the FHA, to be financed with the new loan.

Under the HOPE Program, the borrower share any appreciation or gains in home equity with their lender, since the maximum re-finance amount will be 90% of the property's current appraised value. 

These borrowers will suddenly find themselves with a minimum 10% equity on their homes immediately after the new loan closes.  But they will not be able to easily tap this equity, as the new program provides for Recapture of a portion of the equity gains, up to 50 percent, when the home is eventually sold.

The HOPE Program can commence as early as October, 2008, and sunset on September 30, 2011.

See our post today @ BlogChicagoHomes.com, and the included link to Kenneth R. Harney's article in today's Chicago Tribune, for more details and information.

DEAN & DEAN'S TEAM CHICAGO

Chicago to Lose 18 Starbucks Stores By Spring, 2009!

It's early Sunday, and I haven't had my coffee yet - so I'm still a bit bleary-eyed!

Speaking of joe - we've heard that Starbucks, which, here in Chicago, has come to represent coolness in many of our striving neighborhoods and suburbs, is planning to close 18 of its cafés here in the Chicago Metro Area.  This is part of the coffeehouse chain's plans to close 600 under performing stores across the U.S., resulting in the loss of roughly 12,000 retail jobs.

Two of the Chicago closings were originally opened some years ago in cooperation with basketball hero Magic Johnson, and his Urban Coffee Opportunities program.  Magic's desire - to bring the prestigious Starbucks name into primarily-minority urban areas that might not have gotten a Starbucks location otherwise. 

The stores to be closed include one at Homan & Roosevelt, on the West Side of Chicago, and another at 95th Street and Stony Island Avenue, on the city's Far South Side.  Both are in lower-income areas, according to the company, have performed below their goals and expectations.

Starbucks, in a public statement, cited several criteria to identify stores to close, including current and projected profitability.  It also said "consideration was given to the impact of the current and anticipated economic trends."

The company plans to shutter a total of 25 stores across Illinois by next spring.  Starbucks Cafés in the Chicago Suburbs of Elmhurst and Country Club Hills have also been slated for closure.

See our post from yesterday evening via BlogChicagoHomes.com for more info.  We link here to Barbara Rose and Wailin Wong's story in last Friday's Chicago Tribune.

DEAN & DEAN'S TEAM CHICAGO