Yesterday, I received a call from New York.  It was the Associated Press asking to interview me about what is really happening in Chicago.  This is brief of what I shared with them that will be hitting the press soon:

Area "4" is Lincoln Square: 

     Single Family Homes are begining to appreciate.
     Condominiums:  Seeing more defaults with depreciation.  However, this is the last type of property to actually adjust in a downward trend.
      2-4 Unit Buildings:  A 33% reduction value from two years ago.  I believe the market has all but adjusted itself in this neighborhood.

Area "3" is Andersonville:  Higher predominant selling price then Lincoln Square right now.
     Single Family Homes are still adjusting.
     Condominiums:  Adjusting but not as significant as Lincoln Square, Wrigleyville, Lincoln Park.
      2-4 Units:  Defaults:  Adjusting sitll but not as significant as Lincoln Square.

Area "5" is Roscoe Village, St. Ben's neighborhood:
       Single Family Homes have stablized. 
       Condominiums:  Newer development on Western and Irving Park Road creating competition for some lofts and vintage condos.  Resales are adjusting to December 2005 prices.
       2-4 Units:  Are not being converted to SFR as that once were.  Pricing is level at 2006 selling prices.  Biggest draw is St. Ben's School District.  That is floating and balancing the St. Ben's Neighborhood.

Defaults in Roscoe Village, St. Bens:  I am seeing a good portion of defaults closer to Irving Park Road, some West of Irving Park.  Major contributing factor:  Older homes needing more repairs, taxes, and income from the investment properties are not supporting the mortgage.

Area 14:  Albany Park:

This is a neighborhood that I see where consumers were taken advantage of in financing.  The defaults are based upon buyer's never qualifying for the mortgage but when repairs, utility costs rose, they couldn't maintain the property and pay the mortgage. 

A lot of Two-Four Units in Albany Park are in distress.  Some Loan Modifications are successful.  This neighborhood has level, I believe in pricing with maybe a 4% variance on the downward side but has taken an adjustment of 40% in depreciation/adjustment back to late 2003 pricing!

Condominiums:  Reslaes are high in default and there is a tremendous amount of surplus of defaults competing against developers who were trying to finish up deconversion projects but didn't get down in time and hence, some of those developments are being sold on a "rent with option to buy".  I have seen good sized condos sell for $27K to $60K in this neighborhood. 

Single Family Homes:  Not too many in this neighborhood. 

Area "15" - Portage Park Neighborhood:  There are roughly 323 pre-foreclosures in this neighborhood that haven't even "hit the market".  Those properties are:  Single Family Homes and Two to Four Units. 

Pricing is real interesting in this neighborhood:  On a standard sale:  A 2 flat can sell four $400K or more if it has new kitchen, natural woodwork, trim, floors, new bath, separate utilities, curb appeal.  The same size building can sell as a foreclosure around $200K and some lower but requiring roughly $40K to get the property up and running. 

Single Family Homes:  I am seeing a lot of "hobbyist" work in these homes where a good correction is in need to make the home run better (electric, plumbing, roofs, bathrooms.  The properties that are defaulting are those in need of work, where the family didn't qualify to purchase in the beginning.

Some good deals can be found in this neighborhood if the new buyer has the funds or would pursue an FHA203(k) financing program. 

Pricing in this neighborhood is almost adjusted.

Area "2" - West Rogers Park:

The 2-4 unit properties are slowing down in pre-foreclosures.  Rogers Park had a flood of foreclosures about 1.5 years ago and is finally adjusting in price and slowing down in foreclosures.

Condomniums:  Alot of competition with East Rogers Park as the Metra is located in East Rogers Park.  Seeing resales, with some pre-foreclosures.

Single Family Homes:  Rogers Park has some of the best maintained character for Chicago Style Bungalows that I have seen.  That is based upon the number of homes I have been in in the neighborhood and the longevity of owning a bungalow in West Rogers Park is longer in terms of years.  Pricing is still adjusting on single family homes in this neighborhood.

Overall, I was asked why the slow down of foreclosures?  Are we finally at an end?  The answer is:  alot of these files are in loan modification and while the bank is figuring out the flood of files, the homeowner is making an adjusted mortgage payment to the bank.  The bank is not cashng these checks but holding them while all of these files are being processed.  If the homeowner can make three payments on time and not be late, that is in their favor.  If they cannot, the bank continues on in the foreclosure where they stopped at the time of the loan modification.

I see another round of foreclosures with the 5/1 ARM coming to maturity and rates adjusting upward.  Those files can be submitted for a loan modification and have the adjustment stopped before you default.  How many consumers will understand this?  We'll be seeing that information come this spring when the defaults start happaning under those financing programs.

If you are the owner of an expired listing and are in default of your mortgage, I ask that you reach out before it is too late.

If you are up against a Sheriff Sale in two weeks, you need to call.  I've put out "fires".

If you can't make your mortgage payment and don't know what to do .... you need to pick up the phone or email me.

People, this is about understanding what is going on in the industry.  The sooner I get files in my hands, the better for you and for your neighbors.  I sell your neighbors homes who are not in default.  My focus is on maintaining the median price from not adjust in a downward trend by getting loan modifications, short sales accomplished in a successful rate.

Until tomorrow,

Barb Van Stensel
Keller Williams Lincoln Square
Chicago, Illinois