Local investment club reaches out to Fox Valley home owners.
Back in June of 2015, there weren’t any local Fox Valley area meetups for property investors. Investors had to travel downtown or to the north side to join a monthly group meeting. Frustrated by the lack of networking and resources, Fox Valley area short sale broker and distressed property expert, Jennifer Kinzle, decided to start her own group, Fox Valley Investors Group
When the Meetup grew up
“In the beginning, I started with local property investors from my Meetup group, Fox Valley Investors . We would tour local properties, highlight the pro’s and con’s, talk about financing terms. I really wanted to stay local, reinvest in my community and embrace the challenges. Soon, the investors would refer home owners to me, for example, the ones they were unable to assist, or who didn’t fit their property investing profile. That really started my distressed property specialization, helping people avoid foreclosure,” Kinzle said, “Now, I work with a lot of different investors. Some prefer to add to their portfolio slowly, and short sales can do just that.”
Just over a year later, the Meetup Group has over 300 members, and is one of the largest groups in the area. Using her sales and marketing expertise, Kinzle raises awareness of how property investors can benefit from buying a short sale and how to coordinate with home sellers who are interested in selling. Working with Fox Valley Short Sales under Charles Rutenberg Realty of Illinois, local property investors across the Chicagoland area are finding amazing short sale deals like this one.
Did you know? Illinois is one of five states with a high percentage of underwater mortgages 2015 – 5 States With Highest Percent of Underwater Mortgages
Investing in the community
Many local investors don’t have time to drive for dollars, send out thousands of postcards or shuffle through the foreclosure lists. Using the MLS and short sale brokerage services with the Fox Valley Short Sale team, Kinzle helps investors zero in on more deals faster. The more investors are made aware of short sales, the more they realize the value they provide. The investor group creates a lot of opportunities within local neighborhoods by buying vacant, foreclosed or abandoned properties, fixing them up and selling them to new buyers. Revitalizing the neighborhood by improving the older homes creates a stabilizing effect that lifts all nearby home prices too.
The Fox Valley Short Sales team continue to work on behalf of homeowners, with a large network of lenders, experts and residential housing professionals to educate the public, offering guidance and professional advice as it relates to the housing market, for both distressed foreclosure sales and regular sales.
“Short sales can be a solution, but only when the homeowner is ready to sell and move on. There are other options to try if the homeowner wants to stay in the home.”
Before a short sale – ways to keep their home
“When an investor approaches a homeowner, they have many questions. The most common is how can I keep my home?” Kinzle said. “There are two ways to keep a home, refinancing it or a loan modification program from the lender.”
Homeowners may qualify to receive special refinancing under a program such as HARP or the Illinois Hardest Hit program, which just started in August 2016 and now offers homeowners up to $35,000 in assistance. A lender workout such as a forbearance or a loan modification may also temporarily offer relief or a reduction in a mortgage payment.
Find out the requirements for a HARP refinance here:
Under a lender workout or a loan modification, the homeowner speaks directly to the bank to address the payments. Every bank has different requirements and you should have your account number handy when you contact the lender. A forbearance allows a homeowner to temporarily postpone their mortgage payments. A loan modification can be temporary or permanent.
Click here for video on ways to keep your home: Your Home – Save it or Sell it?
Distress comes in many forms
There are nearly 3,000 pre-foreclosures just in the city of Elgin. The surrounding areas of the Fox Valley are just as inundated, with pre-foreclosure notices being mailed out on a daily basis. Recipients of these notices may not even know what happens next in the foreclosure process. From pre-foreclosure, to a bankruptcy, or a job loss, and pending auction dates, the team will work with the homeowner find a solution.
Click here for a Foreclosure Timeline: Foreclosure Timeline – Illinois
When a regular sale won’t work
Many times, homeowners know they need to sell their house, but they are underwater, meaning they owe more than what the home is worth. There may be a 2nd mortgage or other liens on the property. The owners may feel obligated to complete repairs before trying to sell. Or, they may drain their savings accounts trying to make enormous mortgage payments.
“We are working with clients who are sometimes extremely behind on their mortgage payments. These clients often are going through bankruptcy, divorce, mountains of medical bills or a job loss, while facing foreclosure and auction notices,” Kinzle said. She notes it can be a very difficult, stressful experience, and everyone’s situation is unique.
Investors seeking deals that are unique like a short sale are required to have a lot of patience as well. Although the general condition of a short sale is typically good, there are usually some cosmetic updates required. Of course the biggest hurdle to short sales is the length of time it takes to close.
“I tell my investors, put it into your investing portfolio for a 6+month window. You won’t have to put up any money until we get the final approval letter and you can close in 45 days after we receive it,” Kinzle said. Even better, cash is not required to purchase a short sale. Banks will allow investors to use conventional financing as well. There are deed restrictions, but often these are only 90 days’ or less, with limits on selling for less than 120% of purchase price.
Free Service, Easy Service
“Home owners love our short sale team because we never charge a penny to the homeowner for listing, marketing, or selling their home as a short sale. Fox Valley Short Sales offer services with no fees, and no strings attached. Local home owners need straightforward, professional advice about alternatives to a foreclosure,” Kinzle said.
“Our home sellers facing foreclosure are in financial hardship and we understand their difficulties,” she said, “They’ve been through enough.”
Investors work partner with us because they know they will find a property under market value. They save time and money by getting a deal on a short sale to add to their portfolio. With a little time and patience, short sales can be very rewarding properties to add to an investment portfolio.
Did you know?
We handle a lot more than just short sales. Fox Valley Homes offers full broker service for regular and distressed listings, for all buyers and home sellers, rentals, as well as investors in residential properties across the northern Illinois and Chicago region. All team members are trained to coordinate short sales effectively and retain the full skills and expertise of fully licensed Realtors®, including access to the resources of the local Illinois MLS database.
For more information and details on short sales and more, please contact Jennifer Kinzle, 630-854-4360. Email me direct firstname.lastname@example.org to get on track for 2016.
Direct/Text: (630) 854-4360
Facebook: Fox Valley Homes – Jennifer Kinzle, Broker
Fox Valley Investors Group: Fox Valley Investor Group – on Facebook
MeetUp: Fox Valley Investors MeetUp Group
Charles Rutenberg Realty of Illinois
1733 Park St, #150
Naperville, IL 60563