9 New Facts About Todays Real Estate Market

9 new facts about todays real estate market

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What your banks wont tell you about credit - 35 Important Facts Everyone should be aware of...

What your bank wont tell you about credit facts

View more documents from Robert Jarvis.

Too proud for a short sale? Still borrowing money to make your monthly payments?

Here is an analysis I did for a client this weekend. They purchased a home in 2004 for $185,000. They refinanced in 2007 to pay off college tuitions at a whopping $225,000!

Now, due to underemployment issues at the household, the family is struggling to make ends meet. A “new one” is on the way and finances aren’t looking good. But, the home is perfect for them today.

Family members are assisting, but not at the rate needed to get ahead. Each month is one step backwards. They knew nothing about HAFA programs or Housing Counselors until they met me.

They still asked me what it would take to unload the problem.

Here is a sample of what you might expect. Even though we are in a declining market, and home values might actually be less next year, I still assume a 3% to 4% increase in home value for the long haul. (I believe that is more than a fair assumption)

The current balance on this mortgage is $221,000 and monthly payments are approximately $1,375 per month, or $16,510 per year. Today a market analysis shows this property might only sell for $160,000.

The above chart shows the next 10 years and 20 years probable scenario. Still underwater for another 5 years, possibly at a break even point in 7-8 years, and able to sell and break even in 8-9 years.

In 5 years, 2015, the mortgage balance will be $199,785 and home might value around $195,000. In 7 years, the mortgage balance will be $189,375 and the home might value around $210,000. Assuming 6%-9% closing costs, the homeowner will still be bringing money to the table to sell.

After 10 years, the mortgage balance will be $171,315 and the home might value around $235,000. Assuming the same closing costs and fees, it could take almost a decade for this homeowner to reach a breakeven point, AFTER $180,000 in mortgage payments.

Could their underemployment improve in the next 2-3 years? Certainly.

Could their financial situation change in the next 6-12 months? Certainly.

Could the situation get worse or better? The baby on the way might have different plans…

I could go on and on about the story, but the banks don’t care about their (your) story and where / how much money they (you) have borrowed from family and friends, nor do they care. The banks have a right to receive their money that you borrowed several years ago.

Now, what’s the worst thing that could happen? Any point in time where it becomes financially impossible to make that next mortgage payment, the homeowners decide to walk away, leaving the home for a foreclosure.

They will not be able to buy another home. They will struggle with all things related to credit for years and years.

What’s the best thing that could happen? New programs offered through the Home Affordability Foreclosure Alternative (HAFA) might be able to assist them with reduced monthly payments through modifications, or in a case of unemployment, a forbearance or deferred payment. These programs will help them keep their home for the long term.

Why consider a short sale? These same programs described above also offer alternatives sell your home at a loss – or for less than what you owe. If you qualify, you could receive $3,000 for moving expenses, or you may be eligible for a waiver of deficiency judgment.

Give me a call to discuss what we can do to get you on the road to change, either for homeownership retention or liquidation options.

Robert Jarvis, MBA

RobertJarvis@AnOpenHome.com
Direct: 773-572-2362
Website: http://www.anopenhome.com/

Home Affordability Foreclosure Alternative

Here is a simple video with some information on foreclosure alternatives. There is a time and place to prepare for worst, at that time is before it is simply too late.

I urge you to please contact me or anyone you trust with information pertaining to programs which you maybe eligible for BEFORE its too late and you no longer can take advantage.

This is NOT a strategic maneuver not should you be ashamed. This can mean the difference between a temporary relocation before your situation improves or a very long term recovery.

Please ask for help before it's too late.



Did you know you may be eligible for a $3,000 Moving Cost Assistance after a successful short sale?

Did you know you may be eligible for a waiver of deficiency judgement?


Robert Jarvis
Keller Williams Realty
773-572-2362
RobertJarvis@AnOpenHome.com

Final Walk-Through

Cracked Tooth!

I had a tooth accident yesterday. I want to thank Dr. Michet Dental office in Evergreen Park for helping me out!

I had a root canal a couple months ago and yesterday I felt what appeared to be a piece of floss hanging out of it. I tried looking at it and I thought it was my root canal hanging out of my cracked tooth!

At first I thought it was piece of floss or something but realised that YUP, the tooth is cracked, the stuff they put in the root is hanging out - good thing the tooth is already dead!

I walked in his office during lunch and he took me right away, cleaned it out, put a cap on it - no questions asked! The best dentist I've ever used.

I've been going to him since I moved to Evergreen Park after a very bad experiance with another dentist and I will never go anywhere else again...

MY DENTIST - Michet Dental Offices

Daley: Give renters more condo conversion protections :: CHICAGO SUN-TIMES :: Metro & Tri-State

Daley: Give renters more condo conversion protections :: CHICAGO SUN-TIMES :: Metro & Tri-State


The copy of the report can be downloaded here: http://www.chicagorealtor.com/associations/6001/files/Final%20Condo%20Conv%20Task%20Force%20Report%209%202%2010.pdf

I think its a little too late, but hopefully it will be enforced when recovery begins. I have other mixed opinions too, but I have to run to an open house, so I'll touch on them later!

Happy Reading!

RObert Jarivs
www.AnOpenHome.com