Well Chicago, we have some interesting turn of events this week in real estate and some across the country.

Let's begin with FHA Financing:

There is a House Bill right now asking for 5% down payment instead of the 3.5% down payment on home purchases.  Also included in this Bill is that closing costs would no longer be included in the loan.

FIRST TIME HOME BUYER CREDIT:

Right now you are being urged to call your Senator to expand the $8,000 tax credit for an expiration date of June 2010. It is currently being debated on the floor.

PINK SLIPS.  Yes, that is correct.  Pink slips were sent to those representing us in DC via Fed Express as they guarantee personal delivery.  Over 3,000,000 pink slips were shipped to DC telling those who represent us to start doing their job.

I couldn't believe it when I saw it but it was a novel way of telling the folks in DC that we are not too happy right now. 

The cost to deliver one of these:  $29.95

                                                                                                                     Photo courtesy of WND

Foreclosures are on a rise in some neighborhoods in Chicago.  Do not panic because those foreclosures are a result of the Banks holding back inventory and now are deciding to be releasing some of it.  How much are they holding?  Roughly 135% of the total sales from this year.  Yup.  That means, they are want to start allowing these homes to hit the market.

How does this effect you?  Well, the banks feel because we are leveling off that now is the time to "dump" these homes back into the main stream.   If we could only get them to see that if they allowed a percentage, monitored it and kept releasing at an even level but that won't happen.  Here's why:

They are not telling you that there are approximately 13 million homes in foreclosure and not the 7 million.  There are alot of problems right now in this financial main stream and the banks don't know how to handle inventory.

What until you read my post on how the Banks are making money off of foreclosures.

That pretty much sums up this Week in Real Estate.

If you have a question, give me a shout.