Jack's Blog

Life after a Short Sale...

Jack Lewitz (Jack A. Lewitz) — Mon, 16 Nov 2009 09:36:02 -0600

As realtors we often talk to past clients to see how things are going and I wanted to do the same with some of my Short Sale Clients.

Following is an email I recently received from one such client..

Hi Jack,

Things are actually going pretty well for me. “The Short Sale was the best thing that happened ” .

I am living in my own apartment with my dog in the city. I had a hard time buying a new car because of my credit not my income but my family was able to give me a loan and I am paying them back.

I don’t have any major debts, outside of a student loan and Ihave a comfortable life within my means. Overall, things are as they should be.

I will definitely pass your name if given the opportunity.

Good luck with the blog and I hope you have an enjoyable Thanksgiving…

It May Look Like Steak but it Tastes like Beef Jerky .. 'Deed for Lease Program'

Jack Lewitz (Jack A. Lewitz) — Mon, 09 Nov 2009 18:01:35 -0600

Fannie Mae announced a new program on Thursday that may look like steak to some but taste like beef jerky. The program is called ‘The Deed for Lease Program.

‘The Deed for Lease Program”is a temporary solution to the foreclosure problem. The program is for homeowners who DO NOT qualify for a loan modification program but DO NOT want to move from their home.

In this program the borrower voluntarily transfers the deed back to the lender and the lender rents back the home to the borrower at Fair Market Value or no more than 31% of the borrowers gross monthly income.

Doe this sound familiar. It should because the 31% is also used as the criteria for the Home Affordable Modification program (HAMP) program. If Borrowers did not qualify for a home modification program why would anyone think the lender would now rent the same home to some who has defaulted on their mortgage and would not be considered a good candidate for a new loan.

There seems to be a flaw in logic to this plan. It may look like steak, smell like steak, but it taste like beef jerky…

HAS THE REAL ESTATE MARKET HIT BOTTOM?

Jack Lewitz (Jack A. Lewitz) — Wed, 28 Oct 2009 09:52:51 -0500

I read an article in the Chicago Tribune business section “Housing Market hits ’some kind of bottom’”.

In the article it sited a recent study by The Standard & Poor’s/Case Shilling Index of home prices in 20 metropolitan areas.

According to this study, home prices have showed a 1% increase in seasonally adjusted median home prices. The conclusion based on this study is that the housing market is at or close to being at bottom.

The article did point out that there were some sub-markets still struggling like Las Vegas, Charlotte N.C., Cleveland, and Phoenix. All of these cities are struggling with foreclosures.

But in general most markets were improving and the number 1 reason for the improvement was the Federal Governments First Time Homeowner Tax Credit of $8,000.00. The tax credit brought new home buyers out into the market and these buyers took advantage of lower home prices and low interest rates and began purchasing homes.

The conclusion of the article was ” The fundamental story is that housing got way too expensive, and now you could argue that housing is cheap again, and that is what it boils down to in 50 words or less.”

Are we to take this last statement for what its worth as fact. I think that this a simple answer to a very complicated situation. I have heard these arguments before like ” Too Big to Fail”, or ” The market will Correct itself” and I think they all have some major flaw. They generalize a problem to 1 simple answer and that is a problem in itself.

I have learned that Real Estate can not be viewed on a global level. Real Estate prices and values are based on sub-markets. These sub-markets can be from block to block.

Real Estate is based on Supply and Demand. If there is an over supply of property then price of a home will go down.

Real Estate is based on supply of money. When interest remain low then buyers can afford to buy.

If the Real Estate market relied on “Cheap Prices” as the article suggests then I guess we would all be millionaires by investing in Real Estate.

Lets not fool ourselves. We cannot predict when the market will hit bottom.

Is there A Relationship Between Foreclosures and Unemployment?

Jack Lewitz (Jack A. Lewitz) — Tue, 27 Oct 2009 18:35:24 -0500

Is there a correlation between the number of Foreclosures and Unemployment. Can we assume that those States with more unemployment will have more Foreclosures?

Below are the ranks for the Top 10 Foreclosure States according to Realty Trac. Illinois is listed as 10th by Realty Trac but other poles show Maryland as 10th and Illinois slipping to 12th.

1 out of every House Holds (HH) is the number of family households that has received a foreclosure notice. This information came from a recent CNBC poll.

The unemployment data comes from the Bureau of Labor Statistics.

From the data we can understand why Michigan is listed as number 1 in terms of unemployment with the loss of jobs from the automobile industry in Detroit by why are they ranked 8th in terms of unemployment. Will there be more foreclosures in Michigan due to the high unemployment?

Nevada is Ranked number 1 in Foreclosures and Number 2 in terms of unemployment. These statistics make sense.

Yet Rhode Island which is ranked 3 in terms of unemployment at 13% does not even make the top 10 list in terms of Foreclosures. What is Rhode Island doing that other states are not?

In contrast Utah which is 6th on the list of states with the most Foreclosures (1 out 251 households) has the lowest unemployment rate at 6.2 %.

It appears the statistics are inconclusive when it comes to a coorelation between State Rank in Foreclosures and Unemployment Rate.

Foreclosure Rank	State	1 out of every # of HH	Unemployment Rank	State % Unemployment
1	Nevada	1-59	2	13.3%
2	Arizona	1-179	22	9.1%
3	Calif	1-154	4	12.2%
4	Florida	1-158	8	11.0%
5	Idaho	1-250	26	8.5%
6	Utah	1-251	51	6.2%
7	Georgia	1-265	14	10.1%
8	Michigan	1-270	1	15.3%
9	Colorado	1-342	39	7%
10	Illinois	1-363	12	10.5%

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Thank You Betty....

Jack Lewitz (Jack A. Lewitz) — Mon, 26 Oct 2009 21:39:09 -0500

I want to thank Betty Cunningham of Re-Max for contributing two blog articles for my website.

I recently received an email from Betty and she was enthusiastic about networking with other realtors and learning more about how to become a Short Sale and REO specialist.

After talking with her and telling her about my own website and how i wanted to work with other realtors and help them promote their business we planned a date to meet.

As a member of Active Rain and already a blogger, it was easy for her to write two blog articles for me"

"Is On Line Bidding a New Trend?" and " Family Searches Web for Help"

Thank you Betty for the article and I look forward to networking with you or anyone you may know that I do not know.

If you are an Illinois Realtor and are doing Short Sales, REO or BPO's and would like to network and learn from others doing what you do then please visit my website at : http://www.ilrealestatespecialists.com.

I look forward to working with you. Remember there is enough business to go around for everyone.

The Scariest Mask This Halloween....

Jack Lewitz (Jack A. Lewitz) — Sat, 24 Oct 2009 20:02:21 -0500

Happy Halloween... Happy Halloween... Happy Halloween... Happy Halloween

Have You Paid Your Cook County Real Estate Taxes?

Jack Lewitz (Jack A. Lewitz) — Thu, 22 Oct 2009 09:18:40 -0500

Have you paid your Cook County Real Estate Taxes?

No! Because Residents of Cook County have not received the second installment of their Real Estate Taxes for the 2008 Tax Year.

Taxes in Cook County are paid in arrears. That means taxes paid in 2009 are for the 2008 tax year.

Taxes in Cook County are paid two times a year. The first installment is due in March and the second installment is due in November of each year.

As of October 22, 2009, Cook County residents have not received a tax bill for the second installment of their 2008 Real Estate taxes.

Much of the County Revenue comes from Real Estate Taxes. At a time when the County is struggling to provide services to the community it amazes me why the tax bills have not been mailed.

Cook County Facts

Quick Facts	Cook County	Illinois
Population 2008 estimate	5,294,664	12,901563
# of Housing Units 2007	2,172,658	5,246,005
# of Households 2000	1,974,181	4,591,779
Persons per Household 2000	2.68	2.63
Median Value of Owner Occupied 2000	$157,700	$130,800
Median Household Income 2007	$52,554	$54,144

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TOP 2 Reasons Why a Short Sale Never Closes and How to Prevent it.

Jack Lewitz (Jack A. Lewitz) — Fri, 16 Oct 2009 17:12:30 -0500

Here are my top 2 Reasons Why a Short Sale Never Closes and How to Prevent It.

Number 1 Reason: ” Seller Ambivalence”

Most people want to keep their homes. This is true of most sellers in a Short Sale.

During some stage in the selling process you will be confronted with what I call ” Seller Ambivalence” . ”

“Seller Ambivalence” is like “Buyer Remorse”. Seller Ambivalence and Buyer Remorse is when second thoughts appear after a commitment to buy or sell has been made.

Seller will do almost anything to sabotage the listing if they are ambivalent. If you find your seller avoiding your phone calls, making it difficult to show, or has called the lender to negotiate a Loan Modification while doing a Short Sale then you must have a talk with your Seller bccause these are signs of Seller Ambivalence.

This talk with your Seller can prevent Short Sales from not closing.

Number 2 Reason: “Wrong List Price“

Critical to any sale today is having the right price to motivate buyers. Short Sales are not immune to this and must be priced right to motivate buyers.

As an agent you must make sure you understand your market, what the BPO price will be for a Lender and understand a buyer is looking to buy a property at a price at or below market value.

The following is an example of a home I think was priced too high, did not sell, and was canceled as a Short Sale Listing.

Subject property:

This house is a 7 Room, 3 Bedroom, 2 Bath Brick Bi-Level home.

List Price: $349,900

DOM: 136 Days (Days on Market)

Cancelled Listing

Market Data:

The market data shows 6 homes sold in the area. 3 homes were Short Sales and 2 homes were Bank Foreclosures. The lowest price home sold was $195,000 and the highest price home sold was $272,500. It is my opinion that the List price for this property should have been somewhere in between the low and high price.

Having the correct list price will prevent Short Sales from never closing.

More than half the mortgage holders who get help fall behind again.

Jack Lewitz (Jack A. Lewitz) — Thu, 01 Oct 2009 12:38:06 -0500

The following article is being shared from NY Daily News:

More than half of mortgage holders who get help fall behind again, just as lenders are ramping up efforts to avoid more home foreclosures, according to a new report by bank regulators.

More than 50% of homeowners with loans modified in the first half of last year had missed at least two months of payments a year later, government officials said Wednesday.

But the results were better among those who saw their payments drop substantially.

About a third of borrowers whose monthly payments were reduced by 20% or more fell behind again within a year. That compares with more than 60% of borrowers whose loan payments weren't changed or increased.

The report on 34 million home loans highlights a significant challenge for the Obama administration's plan to tackle the foreclosure crisis, backed by $50 billion in money from the financial industry bailout fund.

The administration's effort got off to a slow start, but has picked up speed in recent months. As of last month, about 360,000 borrowers, or 12% of those eligible, signed up for three-month trial modifications. They are supposed to be extended for five years if the homeowners make timely payments.

Traditionally, most lenders have offered payment plans that allowed borrowers to catch up on missed payments. But those modifications often result in a higher monthly payment.

Under the administration plan, borrowers' interest rates can go as low as 2% for five years. Bank regulators say they have pressed lenders to shift their focus to modifications that reduced borrowers' payments.

My Comments to this article are below:

The success of any Home modifications will require lower monthly mortgage payments. Many people who want to stay in their home cannot afford the payments they have and are looking for lower mortgage payments. Unfortunately, loans being modified are not reducing these payments and therefore more people are defaulting on these modified loans. Also, there are people being offered modification programs who clearly do not qualify for this plan like those people who are unemployed. Its hard to modify a loan when you have no ability to pay? The success of any home modification plan will require the principal balance on the loan to be reduced to the "current market value"of the home. This is the only way to make the payment more affordable. Interest rate reduction and extending loan term are not enough. Finally, if the Fed really wants to help homeowners then it should guarantee the loss in the principal reductions. For example if a homeowner has a home loan worth $100,000 but the property is worth only $50,000 then the new loan should be modified at the current market value of $50,000 and the loss should be guaranteed by the Fed.

Pending Home Sales are at the Highest Level Since March 2007

Jack Lewitz (Jack A. Lewitz) — Thu, 01 Oct 2009 10:32:35 -0500

Pending Home Sales are at the Highest Level Since March 2007. Short Sales and Complex Appraisals are causing delays in home sales.

County	# of Pending Sales	# of Pending Short Sales	% of Total Pending Sales	# of Short Sales Pending 100 + Days	% of Short Sales Pending 100+ Days
Cook	5689	1058	19%	700	66%
Lake	1039	221	21%	169	76%
Dupage	1169	205	18%	169	82%
Mchenry	578	156	27%	116	74%
Will	1116	156	14%	136	87%
Kane	820	169	21%	135	80%

Summary:
Short Sales represent 14%-27% of all Pending Sales in all five counties.

66%-87% of all Short Sales are taking 100+ days to close.

Real Estate Market Viewed Through a Glass

Jack Lewitz (Jack A. Lewitz) — Wed, 30 Sep 2009 16:37:46 -0500

When it comes to predicting the state of the economy and the real estate market its like looking at a glass of water.

Is it half full or half empty?

Neither.

We are no where near a recovery nor are we at the bottom.

STOCK MARKET:

In the short run the stock market will get better before housing .

People who have lost a lot of personal wealth are anxious to make up some of that loss.

With low interest rates on CD’s, Treasuries, The Stock market appears to be half full.

REAL ESTATE

Real Estate is another story. Real estate in general lags behind other markets and with unemployment data at 10% nationally I think the Real Estate Market glass is half empty.

I predict we will see more foreclosures as more people are going to be unable to modify their loans or pay their mortgage while unemployed.

I think home prices will continue to decline because of the increase in foreclosures.

I think there will be fewer home buyers due to tighter credit, or if the First time Home buyer credit is not renewed or if FHA runs out of money.

According to the Home Builders Association there will be fewer new homes being built due to lack of credit and financing.

I would love to hear your comments….

Time is of the Essence...

Jack Lewitz (Jack A. Lewitz) — Thu, 24 Sep 2009 09:30:49 -0500

During the past six (6) months we continue to see high volume of foreclosures in all five (5) counties.
What appears to be shifting is the number of foreclosure sales versus the number of short sales.

The reason for the increase in foreclosures can be explained in different ways.

One would expect the number of foreclosures to increase when the State Moratorium on Foreclosures was lifted.

Another reason is buyers in general are not willing to wait for a Short Sale to be approved by a bank and are looking to get the best price and are opting to purchase Bank Owned properties.

County	# of Sales	# of Short Sales	# of Bank Foreclosures	% Short Sales	% Bank Owned
Cook	12,297	966	4,431	8%	36%
Lake	2,655	234	706	9%	27%
McHenry	1177	160	270	14%	23
Dupage	2,972	274	505	09%	17
Will	2563	254	758	10%	30

Short Sales Could be the Solution to the Housing Market Only if....

Jack Lewitz (Jack A. Lewitz) — Thu, 24 Sep 2009 09:12:31 -0500

Campbell Communications surveyed 1,000 real estate agents and found 19 % of all home sales during January and February of 2009 were Short Sales. On average there is one Short Sale for every two foreclosed property sales.

Short Sales are more cost effective than a foreclosure because they avoid the legal expense of a foreclosure, maintenance expenses, and interest and real estate tax expenses. In addition, Short sales can be completed with less marketing time and exposure to price fluctuations in the market.

Short sales also are better for the seller. The seller will not have a foreclosure on their record and often are fore given of the debt after the sale.

If Short Sales are so good why are we not doing more of them.

According to Campbell Communications, for every completed short sale, three fail due to slow responses to the offers.

It is not uncommon for short sales to take a minimum of 5 months to get a response or acceptance from the bank.

Why does it take so long to get a response. For one thing, the Banks are usually not the decision makers in a Short Sale. Banks typically are only servicing the loan and need approval from the investor.

If Short Sales are better than a Foreclosure then here is my solution to the problem.

Take banks out of the equation and stop rewarding them with money incentives.

If banks are not the decision makers in Short Sales then why reward them with cash.

I suggest we set up another review process for Short Sales.

buyers, seller, lender, and investor, and the Fed need to be part of the process.

Why the Fed?

The number one problem with Short Sales is Investors do not want to take a loss on their investment.

(The loss is the difference between what is owed on the mortgage and the price being offered in a Short Sale.)

In order to get more Short Sale approvals the Fed could guarantee the loss to the investor.

When the Short Sale is finally approved by all parties then they must perform or be in default.

If buyers default then they could be loose their earnest money. If sellers or lenders default then buyers could sue for specific performance.

Finally, Short Sales could become the Solution to the Housing market only if we take necessary steps to change how it is currently operating and streamline the process.

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Truth or Consequences

Jack Lewitz (Jack A. Lewitz) — Tue, 01 Sep 2009 09:35:05 -0500

I think we need to think about who we are rewarding and who we are hurting . While the intentions of the Making Home Affordable Mortgage Program ( HAMP) is supposed to be help homeowners who have fallen behind in their mortgage the number of people being helped is below the estimates. Originally it was thought that the program would help 9 million people faced with foreclosure and clearly this is not the case.

With unemployment rising in some areas modifying loans will not work. Yet the other day a client of mine said she received a call from the bank and has decided to pursue a loan modification with them even though she is unemployed.

I think the public does not understand that banks are under pressure to modify more loans and by attempting to modify more loans they get paid two ways. The get money from the homeowner and money from the federal government for servicing and modifying the loan.

Someone needs to tell the truth and let people know that if they default on the new loan they will have to pay the consequences. If a homeowner defaults on the new loan the bank can accelerate the foreclosure process.

Its Time We Stop Saying " There Goes the Neighborhood"

Jack Lewitz (Jack A. Lewitz) — Tue, 25 Aug 2009 17:02:37 -0500

Foreclosures affect all of us directly and indirectly. The impact of a foreclosure goes well beyond the individual borrower and lender. Foreclosures also affect neighbors, local business, and municipalities.

We all understand the monetary costs to foreclosure but how about the social costs to foreclosure?

Who hasn’t driven down a street and noticed a real estate sign posted on a vacant home and wonder “What happened to the people who lived in that house?”

As more homeowners are faced with foreclosure we need to come up with more inovative programs to deal with the problem. We need better foreclosure prevention programs, we need neighbors and municipalites working together to monitor any dangerous or criminal behavior associated with foreclosures and vacant building.

We need better communication with lenders, local governments, neighbors, and homeowners. We need better accountability where lenders and municipalities work together to share the costs related with foreclosure and then ways to recover those costs.

While the number of foreclosures present challenges I am confident that these challenges will present opportunites for people to work together to solve the problem we are all faced with when it comes to foreclosures.

Its time we stop saying ” There goes the neighborhood”

Countrywide Told It Could Not Pass the Buck...

Jack Lewitz (Jack A. Lewitz) — Thu, 20 Aug 2009 13:55:39 -0500

Greenwich Financial Services wins case against Countrywide Financial in the State of New York.

Greenwich Financial Services, as Plaintiff, alleged that Countrywide had no right to transfer any losses onto trusts who purchased loans from Countrywide and sold them as Securities to Investors.

As part of a class action law suit made against Countrywide by the Attorney Generals in at least 15 state, Countrywide Financial Corporation agreed to reduce payments on hundreds of mortgages that were thought to be fraudulent. The total amount of this settlement was up to $8.4 billion dollars.

In its lawsuit Greenwich Financial Services, said that any agreement to reduce payments was not something that investors had agreed to and that if there were any losses or reductions in payments to investors then Countrywide had to payoff the loans so investors would not loose money.

While we will never know who owns these bad loans the complaint states that the number of Investors could be in the thousands. When Countrywide needed money it pooled and sold loans to Trusts, these Trusts in turn sold securities( often called “certificates” which were sold in different classes or ‘tranches”)

Top 5 Reasons You Should Not Hide From Your Lender

Jack Lewitz (Jack A. Lewitz) — Fri, 31 Jul 2009 22:48:35 -0500

Top 5 Reasons You Should Not Hide from Your Lender

1. The problem will not go away.

2. Your lender does not want to own your Home.

3. There is a solution to your problem other than Foreclosure

4. Your credit can be repaired.

5.You can be helped only if you want to be helped.

“Yes it is safe to come out from hiding”

Illinois Banks have cost FDIC a Pretty Penny

Jack Lewitz (Jack A. Lewitz) — Thu, 23 Jul 2009 17:43:04 -0500

Illinois Bank Losses Cost FDIC a Pretty Penny.

The Top 12 Illinois Bank Failures of 2009 report from Chicago Tribune:

Bank Name	Location	Total Assets Estimate	FDIC Insured Loss	Insured Loss % of Banks Total Assets
Founders Bank	Worth	$963,000	$189,000	20%
Strategic Capital	Champaign	$547,000	$173000	32%
Citizens National	Macomb	$439,000	$106,000	24%
National Bank of Commerce	Berkeley	$420,000	$97,000	23%
Corn Belt Bank and Trust	Pittsfield	$260,000	$100,000	38%
Heritage Community	Glenwood	$235,000	$42,000	18%
Bank of Lincolnwood	Lincolnwood	$214,000	$83,000	39%
1st National Bank	Danville	$166,000	$24,000	14%
Rock River	Oregon	$77,000	$28,000	36%
John Warner	Clinton	$70,000	$10,000	14%
Elizabeth State	Elizabeth	$56,000	$11,000	20%
Totals		$3,483,000	$869,000	25%

These 12 Illinois Bank lost a total of $869 Million Dollars this year or 25% of total bank assets a little under $3.5 billion.

All of this money was insured by FDIC.

FDIC total Losses on a National Level are estimated to be $12.7 Billion with $42 Billion in total Bank Assets.

Stress Reduction Kit for Realtors

Jack Lewitz (Jack A. Lewitz) — Wed, 22 Jul 2009 09:29:25 -0500

As we head closer to the " Dog Days of Summer" I am forwading the Stress Reduction Kit for Realtors. Have A Good Summer Vacation!!!

Is Your MLS Behind the 8 Ball When It Comes to Short Sales?

Jack Lewitz (Jack A. Lewitz) — Thu, 16 Jul 2009 20:11:02 -0500

Is your local MLS behind the eight(8) ball when it comes to Short Sales?

Mine is and here is why!!

According to my local MLS, all signed contract between buyer and seller must be shown as “Under Contract”.

Here is the problem. Short Sales are not your typical sales between buyer and seller.

Short Sales are contingent upon the “Approval” from a third party “The Bank”. This “Approval” can often take between 3 -4 months.

So what does this mean for the Seller. It means taking the property off the market for 3-4 months, getting fewer showings and this can affect the outcome of a Short Sale.

In my opinion I think my MLS board is behind the 8 ball when it comes to understanding how Short Sales work. In Short Sales your orginal buyer often is not your final buyer but if you take it off the market in order to comply with the board rules you are missing crucial marketing time for the property.

I wish the MLS would change the rules or modify the rules when dealing with Short Sales because as a Listing broker my fudiciary relationhip is with the Seller, not the bank. And as a Listing Broker I want the bank to approve a short sale for my seller.

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Who Do You Believe?

Jack Lewitz (Jack A. Lewitz) — Thu, 16 Jul 2009 15:22:58 -0500

The New York Times announced that JP Morgan Chase has reported $2.7 billion dollar profit this second quarter even though we are in the midst of the worst economic downturn in decades.

Meanwhile in a Chicago Crains article, Realty track was quoted reporting a 32 % increase in foreclosure filings in Illinois. In Illinois, 10,796 households received a foreclosure notice in June, or one in every 486 households.

Based on these two different article, who are we to believe? Are the banks getting better and or are more homeowners loosing their homes to foreclosure?

One would believe a little bit of both.

Certain big banks and JP Morgan Chase is one of the biggest, has benefited from the stimulus plan and while reporting some profits is not totally out of the woods as some experts are predicting.

There are not only bad debts on the books of the bank but if the economy continues to slump and unemployment continues to rise as some experts predict the current health of the banks will be in question.

As I have said in the number 1 problem that we are about to face is the rise in unemployment. As more people loose their jobs more homes will be foreclosed by banks and therefore threaten the banks balance sheets.

Putting the Pieces to Puzzle Together..

Jack Lewitz (Jack A. Lewitz) — Wed, 15 Jul 2009 15:27:18 -0500

Deciding what to do next about your home is like putting the pieces to a puzzle together.

Sometimes you don’t know where to start. When doing a puzzle, I always start to look for end pieces and work my into the middle.

Sometimes I get stuck and start all over. Sometimes I try to make two piece try to fit when they don’t.

Recently I heard of two separate families trying to solve the puzzle to their home problems by doing a loan modification on one corner of the puzzle and trying to fit a Short sale piece right next to it in the same puzzle.

Doing Loan Modifications and Short Sales together is like forcing two pieces in a puzzle that just won’t fit.

In the end up with an incomplete puzzle.

Property Dates back to God... A Joke..

Jack Lewitz (Jack A. Lewitz) — Wed, 15 Jul 2009 08:44:34 -0500

A friend of mine sent me this joke and I am reposting it as I received it:

   A New Orleans lawyer sought an FHA loan for a client who lost his house in Hurricane Katrina and wanted to rebuild. He was told the loan would be granted if he could prove satisfactory title to the parcel of property being offered as collateral. The title to the property dated back to 1803, which took the Lawyer three months to track down.



    After sending the information to the FHA, he received the following reply.







    (Actual letter):



    "Upon review of your letter adjoining your client's loan application, we note that the request is supported by an Abstract of Title.

    While we compliment the able manner in which you have prepared and presented the application, we must point out that you have only cleared title to the proposed collateral property back

    to 1803. Before final approval can be accorded, it will be necessary to clear the title back to its origin."



    Annoyed, the lawyer responded as follows.



    (Actual Letter)



     "Your letter regarding title in Case No. 189156 has been received. I note that you wish to have title extended further than the 194 years covered by the present application. I was unaware that any educated person in this country, particularly those working in the property area, would not know that Louisiana was purchased, by the U.S. , from France in 1803, the year of origin identified in our application.

    For the edification of uninformed FHA ureaucrats, the title to the land prior to U.S. ownership was obtained from France, which had acquired it by

    Right of Conquest from Spain . The land came into the possession of Spain by Right of

   Discovery made in the year 1492 by a sea Captain named Christopher Columbus, who had been granted the privilege of seeking a new route to India by the Spanish monarch, Isabella. The good queen, Isabella, being a pious woman and almost as careful about titles as the FHA, took the precaution of securing the blessing of the Pope before she sold her jewels to finance Columbus ' expedition.

    Now the Pope, as I'm sure you may know, is the emissary of Jesus Christ, the Son of God, and God, it is commonly accepted, created this world.

    Therefore, I believe it is safe to presume that

   God also made that part of the world called Louisiana ! . God, t herefore, would be the owner of origin and His origins date back to before the beginning of time, the world as we know it AND the FHA. I hope you find God's original claim to be satisfactory. Now, may we have our damn loan?"



    He got the loan.

Unemployment is the Number 1 Problem in Illinois

Jack Lewitz (Jack A. Lewitz) — Thu, 09 Jul 2009 17:39:18 -0500

Every day I get asked the following question ” How is the Real Estate Market?” and then the follow up question is “When do you think it is going to get better?”

These are the two most difficult questions to answer because I do not have a crystal ball and I am not able to predict when the market will get better.

All I can say is the number 1 problem we face in Illinois appears to be the rise in unemployment through out our State.

According to the most recent May figures, the unemployment rate is now 10.1 percent. According to the Department of Employment Security there are now 671,400 unemployed people in Illiniois.

The State of Illinois has lost more jobs that it is creating. In fact 290,800 more people have lost their jobs since the beginning of the recession.

According to a recent Chicago Crains article dated April 9, 2009, Illinois companies plan to cut 2, 486 jobs.

Android Industries, LLC, an engine manufacturer, plans to cut 273 jobs.

AHS Food Company, a soybean processing company, plans to cut 246 jobs.

HSBC Finance Corporation, plans to cut 214 Illinois jobs

Northfield Laboratories announced 69 jobs are being cut.

RR Donnelly, announced 118 jobs are being cut

Motorolla announced 74 jobs are being cut in Libertyville.

As more people loose their jobs there will be a a rippling affect in the Illinois housing market.

People who loose their jobs will be unable to pay their mortgage on their homes and will not be able to refinance their mortgage or modify their loans with their lender.

I predict more home foreclosures and a longer recovery to the Housing Market in Illinois.

Jack's Blog

Life after a Short Sale...

It May Look Like Steak but it Tastes like Beef Jerky .. 'Deed for Lease Program'

HAS THE REAL ESTATE MARKET HIT BOTTOM?

Is there A Relationship Between Foreclosures and Unemployment?

Thank You Betty....

The Scariest Mask This Halloween....

Have You Paid Your Cook County Real Estate Taxes?

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