New Home Buyers: Risks and Benefits of Rent To Own

Planning ahead on your home ownership dream?

If you are ready to kick your home search into full gear,  consider an option like a rent to own.  Less than perfect credit scores and loads of flexibility are two pluses when buying a home as a lease to own.  

A rent to own option works like this: a buyer is given the “option” to purchase the home at some point in the future at a specified price.  A traditional sale brings the buyer and seller together to complete the purchase quickly, after agreeing to terms.

Instead, with a rent to own transaction, the final purchase is delayed.  The buyer and the seller agree to the possibility of the sale at a future date and it may or may not occur.  The buyer or seller can back out of the agreement, by simply not accepting the sale when the agreement is ended.  In the meantime, the renter decides if they want to make the purchase, often paying additional funds to the seller, to decrease the amount of money needed toward purchase price.

Benefits for Buyers:

Renters can buy even with bad credit: Often dinged on credit scores, renters may not qualify for a traditional conventional home mortgage.  But they may be able to repair their credit with a solid report of their regular monthly payments over the long term.

Lock in a purchase price: Renters can agree with the sellers as much as 12 months 9 or more) ahead on the purchase price.  They can put extra dollars toward the purchase of the home, setting up a discount for when they finally do close.  

Take it for a Test Drive: Try it before you buy it!  Renters may fall in love with the home even more while under the option.  Or they may decide the property isn’t the home of their dreams and decide to skip it at the end of the agreement.

 

Risks for Buyers:

Forfeiting money: If for some reason, you don’t buy the home, you lose all of the extra money you paid.  

Slow progress: If you plan on getting that raise or improving your credit score, and it doesn’t quite work out, you may be unable to commit to the sale when the agreement ends.  

Less control:  This is a tricky part because while you inhabit the property, you don’t have control over it (yet).  For example, your landlord could skip making mortgage payments, not pay the taxes or wind up with a contractor’s lein.  These are outside of your control.  Be sure to have it in your agreement to address these scenarios, including the landlord cannot sell to another buyer while under the option to you.  

Falling prices:  This is not a consideration for the current home market, but it was a few years ago.  If home prices fall during your contract, you may be unable to renegotiate the purchase price.  Then you are left with the option of forfeiting all your option money or buying the house at a higher than market value price.  If your lender won’t approve an oversized loan, you’ll need to bring extra money out of your own savings to the closing table to cover the difference.

Late payments hurt: Just like a traditional mortgage, missing monthly payments can penalize you.  Your lease to own agreement may include a qualifier clause that you must make all payments on time, you may lose the right to purchase (and lose your extra payments).  In some cases, you keep your option, but your extra payment for the month is not “counted” towards the eventual purchase.

Home Issues: There might be problems with the property that you don’t now about until you try to buy it (as noted with tax liens, deferred maintenance and title problems).  It’s best to treat a rent to own property like a “real” purchase and get the reassurance of a full home inspection and title search.

Scams: Protect yourself and the sellers by hiring a reputable attorney to review the sales contract and go over all the requirements to successfully purchase he home.  A home purchase is a major investment, so be sure to do your due diligence.  If it sounds too good to be true, it probably is.   

Contracts:

If you’re interested in finding out more about rent-to-own a home contracts, check out  a sample agreement for your state that protects both the home owner and the tenant.

https://www.rocketlawyer.com/document/rent-to-own-agreement.rl#/

There are many sample rent-to-own agreements and templates online that you can customize and use.  Before using a template however, you should review laws in your state and common items included in a contract to ensure you covering all bases prior to signing a contract. 

I always suggest that you consult with an attorney prior to signing any lease-to-own contract or drafting a contract for your home.  It’s a big investment, and you’ll want the peace of mind that comes with a well prepared contract to help protect yourself.

 

Did you know?

In addition to helping owners with distressed homes and foreclosures,  Fox Valley Homes offers full broker service for regular listings,  rentals, buyers and home sellers, as well as investors in residential properties across the northern Illinois and Chicago region. We coordinate real estate transactions 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, about Fox Valley Homes, please contact Jennifer Kinzle, e-PRO, SFR, (630) 854-4360. Email me direct  jkinzle73@gmail.com.

 

Contact me:

Jennifer Kinzle, e-PRO, SFR Broker
Direct/Text:  (630) 854-4360
Email: jkinzle73@gmail.com
Twitter: @jkinzle
Instagram: @jkinzle

Facebook: Fox Valley Homes – Jennifer Kinzle, Broker
Fox Valley Investors Group: Fox Valley Investor Group – on Facebook
Website:  www.FoxValleyShortSales.com
MeetUp: Fox Valley Investors MeetUp Group

 

Charles Rutenberg Realty of Illinois
3135 Book Rd
Naperville, IL 60563
LIC 481.010.165

 

Happy Holidays from Fox Valley Homes!

Happy Holidays from our family to yours!

Wishing you a wonderful holiday season filled with friends, family, and the very best memories for loved ones here and those we miss.

 

 

 

Check Out These Elgin Properties

First time buyers, investors and renters-take note!  We’ve got a big selection of homes available in Elgin for under $150,000.  See below for REO’s/Short Sales and pre-foreclosures-always at a discount!  W

MLS #          LP/SP      Prop Type   Beds/Bth  Str Name                   CITY       STATUS
09392335                          AUCT  DE    3     2    LOGAN AVE                Elgin       REO/Lender Owned
09378680    $84900      ACTV  DE    1     1     WESTON      AVE        Elgin       REO/Lender Owned
09282394    $94600      ACTV  DE    4     1     PECK  PL                      Elgin       REO/Lender Owned
09305887    $99000      ACTV  DE    3     1.1   ILLINOIS    AVE         Elgin       Short Sale
09271878    $109900     ACTV  DE    2     1     N Clifton   AVE          Elgin       Short Sale
09375998    $110000     ACTV  DE    2     1.1   WING  ST                    Elgin       Short Sale
09261920    $130000     ACTV  DE    3     1     LINCOLN     AVE         Elgin       Short Sale
09391087    $134900     ACTV  DE    3     1     MCCLURE     AVE        Elgin       Pre-Foreclosure
09393483    $140000     ACTV  DE    3     2     CORLEY      DR            Elgin       Short Sale
08992784    $142000    ACTV  DE    3     2     HURON DR                   Elgin       Short Sale
09398631    $146450      ACTV  DE    3     3     ICKENHAM    LN         Elgin       REO/Lender Owned

See video link: 590 Countryfield Lane, Elgin, IL
09273042    $149900      ACTV  AT    2     2.1   CountryfieldLN          Elgin       Short Sale

 

Want more info?  Or is Elgin not your area?  Contact me today for a full list of 100’s of available homes in South Elgin, St. Charles, Streamwood, Geneva and more.  Call or click today.

Did you know?  
In addition to helping owners with distressed homes,  Fox Valley Homes offers full broker service for regular listings,  rentals, buyers and home sellers, as well as investors in residential properties across the northern Illinois and Chicago region. All team members are trained to coordinate real estate transactions 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, please contact Jennifer Kinzle, e-PRO, SFR, (630) 854-4360. Email me direct  jkinzle73@gmail.com.

Contact me:

Jennifer Kinzle, e-PRO, SFR Broker
Direct/Text:  (630) 854-4360
Facebook: Fox Valley Homes – Jennifer Kinzle, Broker
Fox Valley Investors Group: Fox Valley Investor Group – on Facebook
Email: jkinzle73@gmail.com
Twitter: @jkinzle
Website:  www.FoxValleyShortSales.com
Instagram: @jkinzle
MeetUp: Fox Valley Investors MeetUp Group

Charles Rutenberg Realty of Illinois
1733 Park St, #150
Naperville, IL 60563
LIC 481.010.165

 

Save it or Sell it? 2 Ways to Keep Your Home

Short Sale Expert Offers 2 Ways to Keep Your Home

Fox Valley area specialist, Jennifer Kinzle, and Fox Valley Short Sales with Charles Rutenberg Realty of Illinois are working with foreclosure experts across the Chicagoland area to help others avoid foreclosure.

Fox Valley Short Sales

“In the beginning, I started with local property investors from my Meetup group, Fox Valley Investors .  They had clients that they were unable to assist, or who didn’t fit the profile.  So they would give my name to the homeowners looking to avoid foreclosure.  That really started my  distressed property specialization,” Kinzle said,  “Some folks are just barely underwater on their mortgages, some are several years’ of mortgage payments behind.  I can offer options that many folks don’t know is out there.”

Illinois is one of five states with a high percentage of underwater mortgages

2015 – 5 States With Highest Percent of Underwater Mortgages

Using her expertise, she raises awareness of other programs, offers suggestions on how to best work with lenders and suggests when an attorney or HUD home specialists might be needed.  Kinzle and the Fox Valley Short Sales team work with a large network of 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.”

Get prescreened for a short sale now!  http://www.foxvalleyshortsales.com/what-is-a-short-sale.php

2 Ways to Keep Their Home
There are two ways to keep a home in financial distress: a refinance under a program such as HARP or a lender workout such as a forbearance or a loan modification.

Find out the requirements for a HARP refinance here:

HARP Eligibility

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 and pre-foreclosure in Elgin
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

 

The government program is called HAFA-(Homes Affordable Foreclosure Alternative) which allows for home sellers to receive up to $10,000 in relocation funds. *Restrictions apply*.  However, many homeowners don’t know if they can qualify for this credit.  We can explain this and much more.

Free Service, Easy Service
Our team never charges 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.

“There is never a fee for our service.  No consultation fee, no listing fee, no attorney fees.  We never charge the home seller anything, ever.  Our home sellers  facing foreclosure are in financial hardship and we understand their difficulties,” she said, “They’ve been through enough.”

Commitment and cutting out the red tape
Unlike a regular sale, the work doesn’t stop with an offer from a buyer.  Closings can range from 3 to 6 months’ time, depending on the bank.  Fox Valley Short Sales has gained experience with over 40+ different lenders and servicers, including Wells Fargo, Citibank, Nationstar, Ocwen, Chase, PNC, US Bank, Citi, HSBC, Charter One, Seterus, Carrington, RoundPoint Mortgage, Citizen, DiTech and many more.

Cutting through the red tape in short sales is part of the Fox Valley Team’s full service short sale process.  Knowing beforehand what forms are needed, the proper way to submit, requirements of the various loss departments preferences, and which ones need specific items, gives our clients a smoother transaction. Because all transactions are processed in-house, with no third party servicers, the deal moves faster through the system.

As Kinzle notes, “Unlike some agents who only work the spring sales season, we crunch short sales year round.  And we’ll continue to do so as long as there is a need for it in our communities.”

In addition to short sales, Fox Valley Short Sales 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  jkinzle73@gmail.com to get on track for 2016.

Contact me:

Direct/Text:  (630) 854-4360
Facebook: Fox Valley Homes – Jennifer Kinzle, Broker
Fox Valley Investors Group: Fox Valley Investor Group – on Facebook
Email: jkinzle73@gmail.com
Twitter: @jkinzle
Website:  www.FoxValleyShortSales.com
Instagram: @jkinzle
MeetUp: Fox Valley Investors MeetUp Group

Charles Rutenberg Realty of Illinois
1733 Park St, #150
Naperville, IL 60563
LIC 481.010.165

Fox Valley Investor Group Takes Short Sales and Foreclosures Seriously

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.

3310 Lafayette Street, Elgin, IL 60124

 

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.

Fox Valley Short Sales

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.

Illinois Hardest Hit program

Find out the requirements for a HARP refinance here:

HARP Eligibility

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  jkinzle73@gmail.com to get on track for 2016.

Contact me:

Direct/Text:  (630) 854-4360
Facebook: Fox Valley Homes – Jennifer Kinzle, Broker
Fox Valley Investors Group: Fox Valley Investor Group – on Facebook
Email: jkinzle73@gmail.com
Twitter: @jkinzle
Website:  www.FoxValleyShortSales.com
Instagram: @jkinzle
MeetUp: Fox Valley Investors MeetUp Group

 

Charles Rutenberg Realty of Illinois
1733 Park St, #150
Naperville, IL 60563
LIC 481.010.165

Short Sale Case Study – A Family Kicks Starts Finances

Name – Edward and Anna from Elgin, IL
Occupation – Manager and teacher
Income – $75,000 combined
Total Debt Load – $125K mortgage 1 + $20K HELOC = $145K

Do you qualify for a short sale?  Find out here:
Qualifications for a short sale

Reason for Selling:
After being downsized at his company, Edward found himself unexpectedly unemployed. As the  family’s main breadwinner, the family counted on his paycheck for stability. He was able to find a new job quickly, but he was disappointed in the large pay cut. With the reduced income and bills piling up, the family quickly drained their emergency fund. Although Edward was trying to find a better paying position, it was going to take longer than they expected.  Edward and Anna realized the mortgage was now out of their comfort range to afford.

First, they talked with their lender and were able to get a temporary reprieve on their payments with a loan modification.  However, the loan modification ran out after 6 months’ time and the regular mortgage payment was reinstated.  Edward had not found better employment and they were no closer to affording their mortgage.  Edward and Anna decided to look into a short sale and remove their mortgage burden.

Next steps: a pre-screening and a market analysis
Talking with them at their kitchen table on a quiet Tuesday night, we knew right away we could assist them.  When Edward and Anna contacted our team, we knew they had exhausted all efforts to save their home.  They had just hit a rough spot along the road of life, as so often happens.  First, we looked over their mortgages and expenses.  Then we looked at current market values for homes in the area.

A comparative market analysis for the home indicated a market value of $120K, which was less than what was owed. This property was underwater, meaning they owed more than what it was worth.  The home was in fair condition and would be sold as-is.  Edward and Anna were relieved to find out that they did not need to make any repairs or fixes on their home before the short sale. They paid no money out of pocket for the short sale. Our team listed the home at $119,900.  A buyer made an offer of $110K, which the bank countered to $115K.  The buyer agreed and the short sale was processed.

Results:
Under the short sale process, the lender also took care of the attorney fees, closing costs, title fees, and agent commissions.  Using a program called Home Affordable Foreclosure Alternatives, or HAFA program, Edward and Anna could receive a closing cost credit of $10,000 because they were owner occupants with a clear hardship – loss of income. They also realized a short sale would impact their credit score for a much briefer time period than a foreclosure.  The family decided it was the best strategy for them and completed the short sale.

Now:
After short selling their home, Edward and Anna made a difficult decision to move in temporarily with family locally in Elgin, IL, until they could sort out their next steps.  Edward continued to look for work.  Their patience and persistence paid off.  Five months after the short sale was completed, Edward found a better paying position with a new company in the area.  They  are saving up their money, rebuilding their emergency fund, and plan on buying another home soon.

 

Did you know?  
In addition to short sales, Fox Valley Short Sales 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  jkinzle73@gmail.com to get on track for 2016.

Contact me:

Direct/Text:  (630) 854-4360
Facebook: Fox Valley Homes – Jennifer Kinzle, Broker
Fox Valley Investors Group: Fox Valley Investor Group – on Facebook
Email: jkinzle73@gmail.com
Twitter: @jkinzle
Website:  www.FoxValleyShortSales.com
Instagram: @jkinzle
MeetUp: Fox Valley Investors MeetUp Group

 

Charles Rutenberg Realty of Illinois
1733 Park St, #150
Naperville, IL 60563
LIC 481.010.165

Chicago Area Short Sale Expert Offers Underwater Home Owners Alternatives to Foreclosure

Short Sale Expert Offers Underwater Home Owners Options

Fox Valley area specialist, Jennifer Kinzle, and Fox Valley Short Sales with Charles Rutenberg Realty of Illinois are working with foreclosure experts across the Chicagoland area to help others avoid foreclosure.

Fox Valley Short Sales

“In the beginning, I started with local property investors from my Meetup group, Fox Valley Investors .  They had clients that they were unable to assist, or who didn’t fit the profile.  So they would give my name to the homeowners looking to avoid foreclosure.  That really started my  distressed property specialization,” Kinzle said,  “Some folks are just barely underwater on their mortgages, some are several years’ of mortgage payments behind.  I can offer options that many folks don’t know is out there.”

Illinois is one of five states with a high percentage of underwater mortgages

2015 – 5 States With Highest Percent of Underwater Mortgages

Using her expertise, she raises awareness of other programs, offers suggestions on how to best work with lenders and suggests when an attorney or HUD home specialists might be needed.  Kinzle and the Fox Valley Short Sales team work with a large network of 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.”

Get prescreened for a short sale now!  http://www.foxvalleyshortsales.com/what-is-a-short-sale.php

Ways to Keep Their Home
There are two ways to keep a home in financial distress: a refinance under a program such as HARP or a lender workout such as a forbearance or a loan modification.

Find out the requirements for a HARP refinance here:

HARP Eligibility

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. They feel that they need 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.

Discretion is very important for many families, who often don’t share the knowledge of their financial distress with friends or neighbors.  Embarrassment and anxiety are the most common reasons clients seek out a distressed property expert.  Clients also fear ruining their credit with a foreclosure.  A short sale will damage a credit score, but not as severely as a foreclosure.  A short sale can work in many instances, even giving the owners a cash back at closing with Relocation Assistance.

See my last post how to sell a home without a yard sign here:  4 Offers, 3 Days, 1 HR Open House, 0 Signs

$10,000 Relocation Assistance* 
Underwater home owners may be qualified to receive $10,000 after closing the short sale on their house, especially when they thought they wouldn’t see a dime.  Restrictions apply and there is never a guarantee a seller will receive any cash at closing for relocation assistance*.(*Restrictions apply)

Again, an experienced short sale negotiator, like those with the Fox Valley Short Sale team, who understand the process, who can talk with the lenders, can tip the scale in the homeowner’s favor and attain a smooth closing.  The $10,000 cash can be used for boosting a new start on the road to financial success.

The government program is called HAFA-(Homes Affordable Foreclosure Alternative) which allows for home sellers to receive up to $10,000 in relocation funds.   However, many homeowners don’t know if they can qualify for this credit.  We can explain this and much more.

 

 

Free Service, Easy Service
Fox Valley Short Sales offer specialized services with no fees, and no strings attached. Local home owners need straightforward, professional advice about alternatives to a foreclosure.

“There is never a fee for our service.  No consultation fee, no listing fee, no attorney fees.  We never charge the home seller anything, ever.  Our home sellers  facing foreclosure are in financial hardship and we understand their difficulties,” she said, “They’ve been through enough.”

Commitment and cutting out the red tape
Unlike a regular sale, the work doesn’t stop with an offer from a buyer.  Short sale closings can range from 3 to 8 months’ time, depending on the bank.  Fox Valley Short Sales has gained experience with over 40+ different lenders and servicers, including Wells Fargo, Citibank, Nationstar, Ocwen, Chase, PNC, US Bank, Citi, HSBC, Charter One, Seterus, Carrington, RoundPoint Mortgage, Citizen, DiTech and many more.

Cutting through the red tape in short sales is part of the team’s full service short sale process.  Knowing beforehand what forms are needed, the proper submission methods, meeting deadlines, requirements of the various loss departments, asset manager specifics, and more,  gives our clients a smoother transaction. Because all transactions are processed in-house, with no third party servicers, the deal moves faster through the system.

As Kinzle notes, “Unlike some agents who only work the spring sales season, we coordinate short sales year round.  And we’ll continue to do so as long as there is a need for it in our communities.”

 

In addition to short sales, Fox Valley Short Sales 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  jkinzle73@gmail.com to get on track for 2016.

Contact this Top Rated Agent: Jennifer Kinzle

Direct/Text:  (630) 854-4360
Facebook: Fox Valley Homes – Jennifer Kinzle, Broker
Fox Valley Investors Group: Fox Valley Investor Group – on Facebook
Email: jkinzle73@gmail.com
Twitter: @jkinzle
Website:  www.FoxValleyShortSales.com
Instagram: @jkinzle
MeetUp: Fox Valley Investors MeetUp Group

 

Charles Rutenberg Realty of Illinois
1733 Park St, #150
Naperville, IL 60563
LIC 481.010.165

4 Offers, 3 Days, 1 Hour Open House = SOLD!

The 1 Hour Open House
The biting cold of January in suburban Chicago didn’t stop our open house from bringing in a huge number of cash buyers last weekend.  Not only did we have “boots on the ground” with more than 20 visitors at the property in one hour’s time, we also created a live streaming event, showcasing the property to an unlimited number of home viewers.

485 N Commonwealth Ave, Elgin, IL.  This was the only sign we used for our 1 Hour Open House.  The real estate yard sign was not used to sell this home!

4 Offers, 3 Days, 1 Hour Open House and 0 Yard Signs =  SOLD
Want to know how we managed to bring in 4 cash offers in less than 72 hours with no yard sign?  We created a broad marketing campaign using social media, advertising, blogs, videos, webinars and more, across the internet, to attract ready to purchase cash buyers.

Our highly efficient marketing team excels in promoting events online.  Active home buyers are constantly searching the internet for the freshest properties on the market, and they react fast when they see a great property.  Knowing how to snag the interest of those active cash or conventional buyers is key in bringing in the highest and best offers.

A customized marketing plan
To help promote a property, we first discuss with the owners their time frame and goals.  Then we create a pre-staging marketing plan.  We want visitors to see the property at its best, with swept floors, bright lights and clean windows.  There’s no point in doing an open house if no one can walk through it.

Next, we meet the owners in person to review the marketing plan and make sure the proper timelines are met.  Not everyone is ready to sell in three days, so we make sure our marketing lines up to your needs.  We also go over how to de-clutter, de-fur (pets) and de-personalize the property, so that buyers can envision themselves living in the home.  We coach the home owners through our home seller checklist.  We let them know what to expect and how to best work their way through the list.

For example, the property used in our sample video below, the owners used a dumpster to unload decades worth of old boxes from the partially finished basement.  They knew how valuable clearing out the property was in order to receive the highest offer in the shortest amount of time.

Then when the property was mostly cleaned up, we were ready for the next step in our marketing plan – broadcasting our open house event.  This included attracting the interest of the local group, Fox Valley Investors, to get their thoughts on the property  as well.

Here’s an inside peek here:

Fox Valley Investors Group is a local group with cash buyers, contractors, property managers and others looking to for their next purchase or flip.  Investing experts love to get inside a potential property, to see first hand all the benefits of a property, just like HGTV’s Flip or Flop.   The group works right in our neighborhoods and local communities, adding value and contributing to the area by revitalizing run down or dilapidated properties.  Here’s a link to the MeetUp:

Fox Valley Investor Group – Join the MeetUp

As you can see from the video, we used a local expert to walk the group through the house, with an eye for renovations.  By leveraging a multi-level marketing plan, including pre-staging, a broad marketing campaign to highlight the property, and reaching out to local community participants, we ensured a successful outcome with multiple offers.

Three days later, we had received 4 offers. The home owners found themselves in the enviable position of choosing which offer they preferred.

 

 

 

Top dollar for short sales and regular residential sales
We’ve developed marketing plans for a variety of homeowners across the Fox Valley area. Some folks are caught in underwater mortgages and require a short sale to avoid a foreclosure.  Listing their home with my team ensures they can avoid foreclosure and the bank knows they will get true market value.  Short sales and foreclosures are what we specialize in.  Our long term relationships with bankruptcy attorneys, divorce lawyers, title companies, and all the major banks, work together to close more short sales than any other team.

My other clients, who don’t need a fast exit solution, require a different brand of marketing to find a suitable buyer.  I work with a variety of buyers, sellers, and investors to coordinate every sale to run smoothly.  Short sale or regular sale, we work with them all, throughout the Chicagoland area.

If getting top dollar is the only solution that works for you, then you need to list with a Realtor who leverages the right marketing channels, to ensure the highest and best offers.  That’s exactly what you’ll get when you list with me.

The spring market is warming up soon!  Get your free property report here:
Fox Valley Free Property Report

Contact me at (630) 854-4360 for more information on how my 1 Hour Open House can get your home SOLD.

 

Jennifer Kinzle, e-PRO Broker
The Keller Group @ Charles Rutenberg Realty of Illinois
Direct : (630)  854-4360
Fax:  (773) 466-1538
Email: Jenniferkinzle@yahoo.com
Free Property Report: Fox Valley Free Property Report
Website: St Charles Fox Valley Homes

 

Homeowners vs. Investors

 

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“I’ve never bought a home.  Should I look at my first home as an investment?”

This question came up recently at my Fox Valley Investors Group MeetUp.  (details: Fox Valley Investors  ) .  Our group is open to everyone and we get folks of all experience levels, backgrounds and ages when we do our on-site property evaluations.  It was great how this person took the first step into a broader world of real estate by coming out to the property evaluation, and didn’t have any expectations about investing in property.

I took the liberty of explaining how a personal home is not the same as an investment property. Everyone needs a roof over their head,  but a property investor has a few extra.  The difference between investing and home ownership is huge.  Here’s my take:

99 problems plus your own home
A homeowner has one roof, one furnace, one set of pipes and one water heater to worry about.  An investor typically has their own home plus several others on their worry list.  Investors inherit new problems from other locations such as running background checks, deciding on lease terms, fixing broken furnaces in winter,  leaky roofs, calls in the middle of the night on plumbing and weekends, too.  Working a regular 40 hour/week job?  Consider how you’ll handle those extra fixes and issues on your nights and weekends year round.

“But I love this house!” said no investor ever.
Investors don’t love their investments, they love with the profits and checks that come along with a successful business.  Falling in love with a house is not good for business and can undermine a sound business plan. However, falling in love with a house and envisioning cozy family holidays, Super Bowl parties with friends, a big garden, relaxing nights or a remodeled kitchen,  are the exact right reasons to make a purchase to enjoy for years to come.

X marks the spot
Homeowners live in their homes to enjoy them, to maintain them, and to do with as they please.   They might want a home close to work, by a nature preserve, something without stairs, or with a huge back yard.  Their personal preferences trump the investor card every time.  That’s important because building your life in a new home can be a great perk of home ownership. Often people move to a single family home after years of renting and paying a landlord.  The freedom to own your walls, ceiling, garage and basement without needing to share it can be alluring.  I’ve had new homeowners so excited to have a laundry room that they install the washer and dryer before unpacking a single box on Day One!  And if you’re ready to paint the walls in Fired Up Orange, now you can go for it!

Make it personal
Knowing the difference between a detached, professional business approach to buying an investment and falling in love with a white picket fence is important to understanding your first home purchase.

So go and search out those dream homes on the internet.  It’s an adventure to boldly walk through a front door of a house for sale to see if it is right for you!  Will it be as great in person as it looked online?  Maybe.  But one thing is for certain: your first home will be a great “investment”.  Absolutely, yes!  As long as you’re loving the roof over your head and the lifestyle it offers, you’ll be ahead every time you pay the mortgage.

So, what’s your motivation for buying a home?  Interested in investing in properties?  Have you tried a house hack like buying a fixer upper to live in as you fix it?  Find out if a house hack is right for you!  Attend our next meet up and learn from the local property pro’s.  Join us here:  Fox Valley Investors

Free Property Report
Property markets change every 90 days!  But folks sell homes all year long.  Take the first step and get a free market report by going here:
Free Property Report

 
Questions?  Contact me:
Jennifer Kinzle, e-PRO Broker
Charles Rutenberg Realty of Illinois
Email: Jkinzle73@gmail.com
Twitter: @Jkinzle
Web: St. Charles Fox Valley Homes

 

 

Have you seen my mortgage?

Elgin, IL  – Where’s the mortgage?  When CNN’s article posted from January 2014,  http://money.cnn.com/2014/01/10/real_estate/mortgage-rules/index.html on the new mortgage rules ,I was wondering how it might impact local buyers.  Sure enough, the new restrictions have leveled the playing field this year.  I found the low inventory was less of an impact than buyers unable to secure financing this summer.

The two big points from last January were trotting out someone’s ability to pay and making qualified mortgages.

Foreknowledge of one’s ability to pay is a bit ridiculous.  Most people are not independently wealthy and work for a living.  If their job is downsized, so is their income, hence their ability to pay is removed.

No lender can possibly tell if a person will pay back a 30 year mortgage, starting on Day One.  So, of course, there is a lot of guesswork that goes into the process, starting off with debt-to-income ratios, which according to the article is “how much you owe divided by how much you earn per month, including the highest mortgage payments you would be required to make under the terms of the loan”.  This means that whatever your current bills are, the bank has to see it through their lens of “this will never change”.  Hence, if your ratios are not on par now, get them there fast.  Keep in mind that it is ok, in bank terms, to be seen as making steady payments on student loans and rent (good debt) instead of running up huge credit cards or other unsecured loans.  Pay Day loans are a no-no.

Mortgage lenders also are seeking to make qualified mortgages.  While I am sure businesses do not try to make bad loans on purpose, mortgage lenders seek to reduce the number of lemons by combing through more data on a person’s salary history, income levels, debts and rules like 43%.

As noted by Les Christie, CNN’s article:

• “To make sure you aren’t taking on more house than you can afford, your debt-to-income ratio generally must be below 43%. This rule is not absolute. Banks can still make loans to people with debt-to-income ratios that are greater than that if other factors, such as a high level of assets, justify the risk.
• Qualified mortgages cannot include risky features, such as terms longer than 30 years, interest-only payments or minimum payments that don’t keep up with interest so your mortgage balance grows.
• Upfront fees and charges cannot add up to more than 3% of the mortgage balance. That includes title insurance, origination fees and points paid to lower mortgage interest rates.”

Jumbo loans are run a bit differently, as noted by One Mortgage’s Steve Smither.  According to Steve, jumbo loans (those over $417K) afford an even higher debt to income ratio.  Different lenders have separate guidelines for jumbo loans because lenders normally don’t bundle and sell jumbo loans.  However, if the lender expects to sell the loan, they will look for at least 20% down payment.  Requirements for credit scores are typically much higher as are the requirements for reserves (6-12 months cash held in reserve).   Steve also notes that interest rates can be dependent on the individual bank, with variances as much as a quarter point or higher.  Also, he notes that jumbo loans can still qualify for Fannie and Freddie Mac low interest rates if your lender splits the loans into two.  A second mortgage can go up as high as $450K.

That being said, I am not a mortgage lender, nor can I quote rates off the top of my head.  But Steve can and he does it quite well.  Got questions on mortgages?  Call Steve,  847-963-1000.

Have questions on real estate?  Email me at Jennifer@ElginFoxValley.com or visit my website at http://www.elginfoxvalley.com for all things newly listed in Elgin, IL.