Senate Reaches Tentative Deal to Extend Homebuyer Tax Credit into 2010!

According to CNN, Republican and Democratic sources have reached a tentative deal to extend the First Time Homebuyer Tax Credit into 2010.  At this point, here are the highlights:

#1. FIRST TIME HOMEBUYER TAX CREDIT: The $8,000 tax is set to be extended thru the end of April.

#2. CURRENT HOMEOWNERS TAX CREDIT: Homeowners who have lived CONTINUOUSLY in their primary residence for the past 5 years and purchase a new residence will qualify for a $6,500 tax credit.

Homes Sales in Illinois UP 3.3% in September 2009!

While the median home price in Illinois has taken a dip in September 2009 ($160k) compared to September 2008 ($176,450), home sales for single family homes and condominiums rose 3.3% as opposed to September 2008.  Primarily, this is due to the increase in first time homebuyer tax credit usage as the window is closing for 2009.

In the Chicagoland Primary Metropolitan Statistical Area (PMSA), year over year home sales were positive for the 3rd consecutive month for single family homes and condominiums up 5.9% as opposed to September 2008.  However, median price was down to $199,900 in September 2009 as opposed to $223,00 in September 2008.

This reinforces that IF YOU NEED TO SELL….YOU NEED TO PRICE RIGHT TO SELL!  A large number of foreclosed homes will continue to exert pressure on homeowners and pricing strategies.  Knowing how to price right given certain amenities will be crucial into 2010.  Remember to consult your local Realtor or feel free to visit our website for assistance:

http://www.getteammorrissey.com

Statistics provided thru the Illinois Assoication of Realtors; 10/23/2009

Illinois Housing Development Authority Mortgage Relief Program Comes to Aurora, IL on 11/07/09!!!

Struggling with Mortgage Payments?

Behind on Mortgage Payments?

Governor Pat Quinn has established the Mortgage Relief Project to introduce to homeowners the options that new government programs have established to help lower mortgage payments, avoid foreclosure, and keep your home!  Housing Counselors will be available for FREE!  Those in attendance are welcome to bring  mortgage documents, late notices, and State ID.   Transportation can be made available for seniors by calling: 800-532-8785

Mortgage Relief Project

Saturday, November 7th, 2009

9am-1pm

West Aurora High School, Cafeteria

1201 W New York St; Aurora, IL 60506

Visit: http://www.ihda.org/admin/Upload/Files//c2fd873a-fdc9-4232-b5fa-79fe869beef0.pdf

Looking a Buying a Foreclosed Condo or Townhome? Take Into Consideration…

With the numbers of foreclosed condos and townhomes over the past year or two, associations are taking a hit on unpaid association dues or back payment of association dues.  With this in mind, if considering a purchase of a condo or townhome, take into consideration the health of the association itself. 

Here’s some advice from Leonard Baron, professor of finance at San Diego State University, about the information that the seller should consider:

• Does the association budget include money for operating expenses such as water, lights, elevator maintenance, and landscaping?
• Is there extra money set aside in a reserve fund for long-term maintenance? If there is an outside reserve study, that should be provided. If not, there should be adequate money in the reserves right now to cover 50 percent of the estimated cost of repairs over the next 30 years.
• Do the condo’s expenses exceed revenues due to a high foreclosure rate or other reasons that owners’ debts go unpaid?
• If there is a shortfall, does the association have a plan besides cutting back on services for making it up?

Townhomes and condos can be great ways of sharing expenses and the responsibilities of homeownership.  Just make sure you do your homework for a long and sustainable relationship between you and your association. 

Source:  Wall Street Journal, June Fletcher (10.17.09)

Looking Into Buying a Home in Short Sale? Here are Tips to Consider Before Proceeding…

Wow! With all the great deals on homes these days, where do you start?  Well, if considering homes in a short sale position (preforeclosure), you could be in for a wild ride.  Consider these questions before jumping into the pool:

#1.  When do you NEED to close on your next home?

#2.  Do you have financing in place to close quickly if the sale price is approved?

#3.  Do you understand that there will be delays in the process of getting an offer approved?

#4.  Are you prepared to purchase the home “as is”?

#5.  Do you plan on having a home inspection upon approval?

#6.  Do you have cash or lines of credit available to handle repairs on home?

#7.  Is the subject home seen as a “deal” given the surrounding neighborhood?  If so, why?

#8.  Have you surrounded yourself with a real estate team with exposure to closing short sales?

#9.  Have you considered homes that have an “approved” short sale rather than “subject to” short sale?

For more information, feel free to visit: http://www.getteammorrissey.com

Extending First Time Homebuyer Tax Credit Seems Likely into 2010!

With just about 50 days until the 2009 First Time Homebuyer Tax Credit expires, homeowners and Realtors should all be pressing for an extension of this credit into 2010 to revitalize housing and an industry.  According to the Democratic Conventional “to-do” list, renewing this credit seems likely and a high priority.  In fact, as of the first week of October (according to the National Association of Realtors), President Obama and House Speaker Pelosi released a statement expressing to: “continue the efforts to strengthen the housing market by extending the home buyer tax credit.”  Finally, the House is expected to extend the tax credit thru 2010 for citizens out of the country for military, foreign services, or intelligence.

Let our congressmen hear you!  Voice your opinion at:

http://takeaction.realtoractioncenter.com/campaign/hbtc?qp_source=actionhome