It's amazing how a little thing like checking a box can feel so good. Today is the day that we can choose those politcians that will screw up our lives even more. Wait, did I say that out loud? I mean...it's the day we can choose who will represent us. And if we don't like them - we can vote them out in the next election! Maybe it's the weather, maybe it's the media hype - but I can't help but feel excited about voting today. I was so excited, as a matter of fact - that I decided to walk to my polling place. Okay, i'ts less than a mile away - but it's the symbolism of taking charge of my rights as an american. Whether your a Democrat, Republican, Libertarian or Greenie (is that what they're called?).... MAKE SURE YOU VOTE!!!

It's the ultimate American Dream. Build a house from the ground up and create a home that is uniquely yours. Pick out the model, the trim, the paint colors, the carpet. As if there weren't enough to think about - now there's another wrench in the works. Builders are going bankrupt.

Big or Small - no builder is immune from the crunch of our current economic crisis. But not all builders are created equal. Just like homeowners -some are fine and some have overextended themselves. They have too many homes built, too much money out on materials, too many loans. Last year one of Illinois Biggest Builders "Newuman Homes" went bankrupt. Reading the headlines is like watching a soap opera. What happens to the earnest money? What about the the warranty? The Parks? The Roads? Yes - who will finish building the roads.
So what can you do protect yourself as a prospective home buyer? Now more than ever - it's time to do your homework - or let your REALTOR do it for you ;) - here are a few tips:

1. Cruise the public notice section in the local paper and see if any foreclosure listings or liens are listed against any local builders.
2. Ask the builder if he will put your deposit in an escrow. One prospective buyer I spoke to asked for this - and the builder said no. Check out this blog from Phil Hutson in Austin Texas who gives some great tips on what you can expect when you put down that deposit.
3. Work with a Realtor who knows the area. Sure, sounds like a blatant REALTOR plug - but that's part of what we do. We tour new homes, read the real estate section - and gossip! So we know what's happening - and what might be happening.
4. Read the blogs. Whether it's fact-or-fiction you can bet someone is writing about it on the web. Search the builders name and see what comes up.
5. Check Builder-implode.com and BuilderOnline.com which have been regularly reporting on the financial status of builders.
6. Read the contract before signing it. THE ENTIRE CONTRACT! That's right - no skipping over the fine print. Read every detail and know what you're getting yourself into.
7. Get legal advice. Many homeowners never think to use an attorney for a new construction purchase. Now more than ever it makes sense to talk to an attorney and discuss the "what ifs" before you take the leap.
8. Last, but not least - check out this builder punch list from Trey Langford in Boise, Idaho. After finding this blog on the web - I decided I couldn't say it any better than he did!

Bo Buchanan, Kettley Realtors 58 Chicago Rd, Oswego IL. 60543 (630) 846-4663

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It's time for another Web Home of the Week!  Actually, way overdue - it's been awhile since I've done one.  But once you see this house - you'll know why I can't resist.  Yes - it's my listing this time.  I've actually sold a house for this couple once before.  MAN - they know how to build a house!  Want n example?  Take a look at the picture below: 

Okay...you're saying to yourself "it's a bathroom, big deal" right?  Well, this is the basement bathroom.  It has marble floors, marble countertop, tub and shower combo w/tiled surround.  There's even a chandelier - yes, a chandelier in the basement bathroom. That's just an example - but here is a list of some of the detailed upgrades done by the homeowner/builder (the builder is in the contruction trades):

• 2x6 construction instead of the standard 2x4 - that's an extra 2 inches of insulation
• Ceullulose blown insulation instead of fiberglass batts - more efficient because it traps more of the heat loss. 
• Hot water returns to all the faucets.  That means there is a copper pipe leading to the hot water faucet in the sink and then a copper pipe leading back to the hot water heater.  Hot water is constantly circulating in the pipe so you get instant hot water.  Twice the amount of copper!
• 6 inch deep concrete driveway - the standard driveway pour is 3 1/2 inches deep.
• Separate electric panels for the house, garage and basement
• Trex decking is screwed down from underneath the deck so no screws show

That's just a sample of what has been done.  I won't even get into the custom bar, pillared columns, wine cellar and more!  You get the idea.  So if you're looking for quality - check out the full details of this house at http://www.5643Schmidt.com - including over 100 photos, a virtual tour and a floor plan. 

Real Estate Short Sale

Up And Down And All Around 

End Becomes The Means. 

REAL ESTATE SHORT SALE

Real estate agents - we either hate them, love them - or don't understand them.  Short Sales are a necessary evil in todays market - another way to generate leads and close sales.  But unlike a traditional  sale - we often find ourselves deeply involved in someone elses financial matters.  It means gathering very detailed info about how much homeowners make, what they owe and to whom.  It means working with people at one of the toughest points in their lives.  No matter what you think - there is no "One Size Fits All".   

Homeowners  - the short sale is seen as as a life raft.....a last ditch effort to stop the bleeding.  Again - it's a necessary evil.  It is usually just one domino in the financial picture - with other problems lurking beneath the surface.  It seems the more of these I do - the more questions I get asked.  The answer is always the same "It Depends".   Depends on the lender, the homeowner, the loan, whether Pluto is rising...the list goes on.  

If you've got the stomach for a roller coaster - perhaps you can survive a short sale.  Whether you're a homeowner or a real estate agent - it won't be easy.  Perhaps one of the most common questions I get asked is "How long will it take".  Well.....it depends.  Here's a timeline of a short sale I closed last week.  

UP AND DOWN AND ALL AROUND  

Feb 20th, 2008 - received a short sale lead, started contacting homeowner.   

March 3, 2008 - Foreclosure Proceedings started at county.

March 17, 2008 - Preliminary Title Search done. 

March 27, 2008 - Listed the home for sale at $149,900, Completed Short Sale Documents

March 28, 2008 - Short Sale package sent to negotiator.

March 31, 2008 - Additional Short Sale Docs. Sent to negotiator.

April 9,  2008 - Authorization to release info sent to lender

April 10, 2008 -  Price reduced to $139,900

May 07, 2008 - Price reduced to $129,900

May 31, 2008 - Price reduced to $119,900

June 6, 2008 - Court date - lender receives foreclosure judgement for $168k .

June 09, 2008 - Price reduced to $99,900

June 13, 2008  - Multiple Offers Received

June 17, 2008 - Cash Offer Contract Accepted, contingent upon 3rd party approval (lender)

June 18, 2008 - Signed contract sent to negotiator.

June 19, 2008 - Negotiator prepares HUD with all closing cost figures

June 25, 2008 - Short sale Package sent to lender, waiting game begins.

July 7, 2008 -  Loan Rep. Assigned by lender

July 7, 2008 -  Approval postponed due to previous Loan Modification started. 

July 15, 2008 - Appraisal Ordered by Lender. 

July 19, 2008 - Appraiser visits property.

Aug 18, 2008 - Property Appraises at $99,900

Aug 18, 2008 - Conditional Approval of Short Sale Received from Lender

Sept 5, 2008 - Property closes & funds same day. 

MEANS BECOMES THE END

For both homeowner and Realtor - closing is the goal.  For the lender - it's all about numbers.  As a general rule - it seems like lenders are looking for 80-85% of current market value.  Again, it depends on the lender.  In this scenario - after closing costs, commissions, etc.  the lender ended up receiving a little over $83k - that's about 83% of market value (according to the appraisal).  But compared to the judgement - the lender received only about 50% of the judgement they received/amount owed.   From the very beginning - I thought that $99k might be a good motivating price.  But there were no comps for this house.  It was a 1 bedroom home, backing to the railroad tracks in a small town.   If I had put the property on the market at $99k and sold it in a week - I'm not sure the lender would have accepted the deal.  In this scenario I was at least able to show that we tried to sell it at a higher price. 

 Because I was using a third party negotiator in this transaction -these are the dates as best as I can reconstruct them from faxes, emails, contracts, etc.   So many speedbumps appear in the process that you can't pin the blame on one person.  It took over a month for the homeowner to agree to list the home for sale.  It took nearly 3 months just to get an offer on the table - and that took multiple price reductions.   It took just under 2 months to get an acceptance of a CASH DEAL from the lender. 

Bottom Line - we got it done.  Bring on the next one ;)          

Bo Buchanan, Kettley Realtors 58 Chicago Rd, Oswego IL. 60543 (630) 846-4663

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This weekend I had the opportunity to tour "The Townes at Creekside" in Romeoville. This is a new construction community just off Weber Rd. that is in the final stages of completion. The Townnes is a Pasquinelli community of nearly 200 townhomes arranged around a central circular drive.

As with most builders, Pasquinelli is offering some great incentives if you use their preferred lender Washington Mutual. In some cases - the discount is over $30,000!!!

One of the great deals they have their is a 3 bedroom, 2 bathroom townhome with a basement.

There aren't a lot of upgrades in this unit but it's one of the few in the community with a basement. The regular price is $239,514 - but if you use their lender you can purchase it for $207,000. That's a savings of over $32,000 dollars!

If you'd like more information including floor plans and pricelists give me a call at 630-846-4663 or just drop me an email.

Bo Buchanan, Kettley Realtors 58 Chicago Rd, Oswego IL. 60543 (630) 846-4663

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The web home of the week this week is......104 Cedar St, Sandwich IL. Listed for just $70,000 - an unheard of price in Sandwich! Here's the catch - it's a wreck! That's right - this house is not for the timid....not for those purchasing with FHA. The roof is leaking, the property is overgrown, the garage is full of garbage - and it all needs work!

This property is only for the experienced rehabber or flipper. It is a bank owned property and the bank is looking for a quick sale. So - take a look, wear a mask (there is water and mold) - and bring us an offer! MLS#06978000 - email me for more photos!

If you're selling real estate in Chicago's western suburbs - I feel your pain. The Supra/Sentrilock fiasco continues making life difficult for the average REALTOR. A few months ago -a majority of the Chicago area Realtor Associations switched to the new REALTOR owned Sentrilock lockbox system. But a few associations, such as Aurora Tri-County and Fox Valley Association of Realtors re-upped their contract with Supra.
Towns like Aurora, Naperville & Oswego were caught in the middle. With Realtors from many different boards selling in those areas - it's a coin toss as to whether you'll find a Supra or Sentrilock lock box on a listing when you go to show it.
I was out showing houses yesterday and of the 5 listings I encountered - there were 2 sentrilocks, 1 supra and 2 combination keylocks. Hard to believe there can be so much difference in one market. So, to work effectively - REALTORS in this part of the Chicago burbs now have to license both a supra and a sentrilock system. Fork out the $$$$ boys and girls. Trying to decide which lockbox to put on that new listing is a crap shoot. Just to be safe - I put a combination on every listing in addition to a Supra keybox.
Neither system is perfect - but if I had to pick one I would pick the Supra System. Both systems require you to update your key on a daily basis (synchronizing over the inernet) - but what if you head out for showings and forget to update your key? Supra has an 800# you can call to update your key 24 hrs a day. Sentrilock has a phone number that is only available until 5pm. That doesn't help much. Supra allows you to download a showing history for your keyboxes via the internet. Sentrilock requires to to visit each keybox and punch in a series of codes to download the showing history for the keybox to your smart card. Carrying 20 listings? Have fun - it's a little cumbersome.

Bo Buchanan, Kettley Realtors 58 Chicago Rd, Oswego IL. 60543 (630) 846-4663

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It's an exercise in futility I'm sure....but for the second time I've decided to pursue the purchase of a bank owned property for a client BEFORE it hits the MLS.  Why would I willingly submit msyself to such punishment?  Well, my clients asked.  And I'm curious. 

I am working with buyers who are pre-approved and they have signed a buyers agreement with me.  They are good solid buyers.   They have been driving by this house and keeping an eye on it for months.  It's vacant - the grass is overgrown.  And now the roof is leaking. 

Today I went to the County Recorders office and the county courthouse to get as much information about the property as possible.  The foreclosure took place June 9th, 2008 and a sheriffs order of possession was filed June 23rd.  According to the order of possession - the owners had 30 days to vacate.  I've told my clients this is a long shot but we are going to try. 

I am trying to track down who actually owns the mortgae.  According to the county records, the mortgage was provided by Countrywide.   While visiting the property - there is a tag on the front door that says the property was serviced by Countrywide on June 8th, 2008.  But in October of 2007, the lis pendens was filed by "Bank of New York as Trustee for the certificate holders CWABS, INC. Asset-Backed Certificates Series 2006-6".  And in November of 2007 an assignment of Real Estate Mortgage was filed by MERS on behalf of Countrywide saying "MERS as nominee for Countrywide Home Loans INC. hereby sells, assigns and transfers to Bank of New York as Trustee for the certificate holders CWABS, INC. Asset Backed Certificates Series 2006-6 its successrs and assigns, all right, title and interest in and to a certain mortgage....for borrower"

I'm assuming this means that the property mortgage was sold as part of an investment instrument.  My question is - who actually owns the loan now and who will be handling the property as an REO?  Will it still be countrywide?  Is countrywide stil servicing the loan on behalf of New York Bank/CWABS?  And who is CWABS, INC.?   

Bo Buchanan, Kettley Realtors 58 Chicago Rd, Oswego IL. 60543 (630) 846-4663

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I spend a lot of time reading real estate blogs - But I always wonder where those great images come from.  Are people just grabbing images off a google image search?  Snagging photos or comics from other websites?  If you are - they are probably copyrighted images. 

If you didn't personally take the photo - you don't have the right to use it.  

That's right - if you didn't take it personally.  That includes the photo of that new listing.  It's an easy to remember rule of thumb.  If you start from that premise - there is less of a chance you'll get in trouble.  But it doesn't mean you can't use images on the internet.  If you find an image you like on the web - you'll need to look for the copyright info attached to that image.  

That being said -there are plenty of places you can find free images on the internet.  Some sites will require you to pay a membership fee to use their photos.  Others will require that you deposit money into an account - and then download photos that use up "points" that equal dollars

Rather than try to "Be The Expert" I always like to point people to an authority on the subject.

• PhotoLaw.net - out of Boston, great Q&A tips for photographers, writers, etc. 
• Lenn Harley - her very first Active Rain post way back in 2006 was about - COPYRIGHT!  Read her post to find out first hand how she collects royalties from people who have stolen her copyrighted images!
• Larry Lohrman, Photography for Real Estate - Larry wrote an interesting article back in 2007 about who owns the photo of that house you are selling?  Do you own it?  Your Client?  The Builder you took the photos for?  Larry's take on the issue is worth a read.  

Most STOCK or FREE photos on the web will give you the right to use the photos on your blog, website etc.  But if you plan to reprint those images on brochures, tshirts, mugs or the like - a different license and fee is usually required.  Here are a few great resources you can if you want images for your blog or website.  Read the copyright section of each to determine how you can use the photos:

• FreeFoto.com
• FreeDigitalPhotos.net
• PublicDomainPictures.net
• FreeWebPhoto.com
• StockXPert.com

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All the resource related links in this post are available at the Blue60.com Directory of Resources for Real Estate Professionals.  Blue60.com is a human edited diretory of links for real estate agents, loan officers & appraisers.  If you're looking for anything related to the business of Real Estate - you'll find it at Blue60.com

Have you ever heard of the term "Media Literacy"?  The concepts been around for a while - it's a way of teaching people that you have to question the media, not take things for granted.  You need to do your own research - and consider the vantage point of the person presenting the story.  I worked in Television for some time - and I'll tell you first hand - anyone can get on television. If you're good looking and you can hold a conversation - you're in! The more off the edge you are - the better.   

Now, more than ever - it's important for people in the real estate profession to question the sources of information.  Every day I hear another story on the radio or TV that we've hit the bottom.  Or the market is rebounding.  This sector or that sector is doing better.  Then I read economical pundits telling us that we are in for an even deeper recession.  Everyone can't be right.  No wonder the consumer is hesitant to buy (at least that's my perspective -but who am I!).

Case in point - I was crusing the internet last night and I landed at Inman News.  I came across a blog entitled "Take it from an agent - sell by owner". Of course, as a good title does - it caught my attention.  In the article, Danielle Babb says that commissions are the reason why we aren't seeing a recovery in the market.  She also goes on to tell consumers not to waste time or money with agents.  I'm sure that comment alone will be enough to raise the ire of many in the real estate industry.  But here's the kicker.  Not only is she a real estate agent - but she has a website and a book entitled  "Commissions-At-Risk.com" in which she counsels real estate professionals on how to use technology to survive the changing market.  

After reading apparently conflicting statements I did a little research on the web and found this interview on YouTube with Peter Schiff & Danielle Babb at FOX News.  I think the interview speaks for itself.  Danielle Babbs has a list of credentials at the end of her name - MBA, DR, Investor, etc.   On the other side is Peter Schiff - President of Euro Pacific Capital. Now, both pundits sell or work for companies that will obviously profit off their comments. Danielle Babb promotes HousePad.com - a flat fee listing company.  I am unable to find out if she has some sort of affiliation with this brokerage - but I she mentions it Inman and Entrepreneur.com .  She also  promotes teaching online and seems to be heavily focusing on her foreclosure finding book. Peter Schiff is president of a Euro Pacific Capital - a company that promotes the sale of foreign stocks. 

Whether you're watching TV, reading the newspaper or reading blogs - it's important you consider the motives of the source.  What do they have to gain by promoting their particular opinion?  What are their affiliations?  What are their credentials?  It doesn't mean you must distrust everyone in the media - just consider the source, ask questions and make up your own mind.

That's my two cents -but who am I?