Foreclosure and Debt

Foreclosure and Debt. Swear words your mother would make you bite a bar of soap for saying in the current economic state our country is in. They are not easy situations to find yourself in, to tell anyone about, or to get out of. Suze Orman was on ABC's "The View" this morning discussing financial issues, and while a lot of people don't like her she does make some sense.

Credit card debt is a major problem for so many people, it plays a major role in leading people to foreclosure. So many families in foreclosure that we have helped have had a lot of bad debt, credit cards, medical bills, second mortgages, and the list goes on and on.

Suze Orman's solution to this is to get a credit card with a Credit Union
instead of a "bank". Credit Union's can only charge a maximum of 19%apr
vs. the regular banks which I have seen as high as 30% apr.

How many people have you told that you are in debt? What an embarrassing thing to admit to others, be they your friends or co-workers, family or neighbors! Debt is something that people hide from so many people they have a hard time admitting it to themselves. When was the last time you added up all your bills vs. your income?

Suze Orman suggests letting the secret out of the bag and letting people
know about your debt. It's not a dirty secret, and odds are once you open
up about your problems others will too.

Suggestions on a plan of action:

1. Write all your debt down on paper, a copy of your credit report can help with this.
2. Write a list of all your expenses, don't leave anything out.
3. If your expenses exceed your income make reasonable cuts to your budget.
4. Call your credit card companies and ask them to lower your annual percentage rate.
5. Medical Bills? Call the hospital or collection agency and ask for an itemized bill. If you have some extra money offer them a settlement....but have them send you confirmation in writing before sending the money. You can also do this with bad debt on your credit report, often times the companies would rather get something than nothing.
   
6. Find ways to make extra money, have a yard sale and use the money to make extra payments to pay down your debt.
7. Stick to your plan.

While these are just some quick ideas, once you start the ball rolling to paying off your debt and make a plan for yourself to follow it will be easier to stick to the plan. If you have children you can include them in the conversation on how to keep expenses down, children often think of things adults never think of, their minds work differently and are often less stressed than adult minds. Plus, it helps them to be involved to see that even their own parents have problems and to learn problem solving skills to work on the problem.

Suze Orman suggests www.creditcardconnection.org to find a
local credit union to help with lowering your debt. You can also visit
Suze's website www.suzeorman.com and see her helpful ideas.

Debt doesn't accumulate overnight, and neither will you get rid of it overnight. But it is possible to get yourself out of the whole, as long as you can stop yourself from digging. You are not alone, remind yourself that most of the country is in the same position as you, with some careful planning it is possible to get yourself out.

Be careful of using credit agencies to help yourself get out of debt. We have heard of many companies that take people's money month after month only to never pay any of the bills. This happens with mortgage help services too. DO NOT pay anyone to reduce your mortgage without first asking your mortgage company about the Making Home Affordable Program which helps homeowners in trouble stay in their home.

If you want to buy a house and you have an income that has been consistent for the last 6 months to a year, now is a great time to buy a home. It's an even greater time to buy a rental property. There are more people wanting to rent than there are houses for rent in the Lake County and McHenry County area.

House 4 Rent

Are you looking for a house to rent? Call us at 815-669-4944 today to let us know what you are looking for and we will start our search. The best thing about using a professional real estate agent is that you pay no fees but you reap the rewards of having a Realtor by your side during the entire renting process. We've added a new page to our website to help renters and added some useful tips we've learned from our experience.

We went out to see a house today in Fox Lake for rent and by the time we made it back to the office after seeing other rental properties in Johnsburg, Volo, Wauconda, Antioch, and Lake Villa to fill out the application the other Realtor already had two other applications in. When a house is for rent at a good price it's best to have everything ready.

We encourage our potential renters to carry a copy of their credit report with them with a generic rental application filled out so they can quickly and easily give copies to the potential landlord. You can get a free credit report and most landlords will accept your self pulled credit report with a credit score (that you may have to pay for) if it's printed with in the last three months.

A renter we worked with a couple months back did not have great credit, she had lost her house in Gurnee to foreclosure and has a lot of bad debt.....some landlords wouldn't think twice about denying her because of this. She did something very unique that made the landlord choose her above the other 7, yes seven, applicants that were interested in the house in Grayslake. Call me at 815-669-4944 to ask me what she did. Bad debt is something a landlord can over-look if you have the correct approach.

Rent a Home in Lake or McHenry County

Our agents have been out and about showing rental homes a lot lately. We've had just as many showings of rental property as we have with investment property, and that's awesome to us! As real estate agents we enjoy showing houses, we like looking at them just as much as the people we are showing them to.

We've been finding that good deals on rentals go quickly and there are a lot of people looking. When you find something you like be quick to act on it or it will be gone. It is important to ask the right questions when you go to look at a house, apartment, condo, town home or room for rent. Are there any utilities included in the rent, do I have to carry renters insurance, what do you use the security deposit for, and the list goes on and on. If you don't know to ask, you could get stuck paying more than you can afford, which isn't good for anyone involved.

Visit our website to find out more information about what you should ask, and you can also set up a search for area rentals to be sent to you, as soon as they come online. This free search can put you one quick step ahead from all the other people looking for a home to rent.

Metrovisions Realty is located in the north east corner of McHenry County in the picturesque Village of Johnsburg. Every Johnsburg resident has water rights to launch a boat into the beautiful Chain-of-Lakes and you can visit our website to learn more about the Johnsburg area.

Senior Housing in Fox Lake, Illinois

Affordable and brand new senior housing units have opened in Fox Lake, the first occupants moved in September 1, 2010. The brand new facility houses 100 units of 1 and 2 bedrooms, and in located off of Route 134 and Nippersink Road very close to Route 12. Check out our website for more information, and call us at 815-669-4944. The Thomas Place offers seniors the option of low-income housing.

Are you a Landlord?

The current prices of real estate are wonderful for investors to pick up some extra property and rent the property out for some extra income. A client of ours bought a house for $18,000 in McCullom Lake and put $2,000 into it for paint and carpet. He is now renting it out for $795. We have hundreds of stories just like this from our clients who have bought a rental property.

Not only can we help you find a great deal on a property to buy for some extra income, we can also help you find a good renter to rent it from you. We at Metrovisions Realty prefer to think of our renters as doing landlords a big favor.....paying their mortgage every month, usually giving a little extra money to the owner, and making a big difference in good and bad experiences. When you find a quality renter that pays their rent every month you have found a gem. Finding a gem isn't all that hard....when you know how to look....and we at Metrovisions Realty know how to help landlords choose a quality renter.

When you make the decision to rent a house to someone, you as a landlord have to be careful to cover yourself from possible problems. We have tried and true methods as property managers to give you ideas in ways to protect yourself from the problems that can arise from having a rental property......late rent payments, problem tenants, etc........we have a detailed lease that will help you to work easily to get people moving.

Call us at 815-669-4944 with any questions or to list your house for rent today!

Renting a Home

We've been hearing that it is a renters market, and while that is true, it is also a landlords market. Because of the slow economy there is a decrease in home sales, but that doesn't mean people don't need a place to live. When someone can't buy, they rent.

As a renter it is important to remember that there are a lot of others looking for a place to rent too, so be quick to return all paperwork asked of you in a timely manner. It is also important to cover all your bases and make sure everyone and everything is above board. If you take all your time and effort to move into a house you want to make sure the property isn't about to be taken back to the bank or sold to someone else. A real estate agent is a valuable asset to have when ren-ting a home because they are experienced with looking at homes, as well as the paperwork that goes with it. You can visit our website to see some valuable tips for renters.

At Metrovisions Realty we can help you with all of your real estate needs, and we have a lot of experience in helping people find homes to rent. You can set up a search easily and quickly that will automatically email you the properties that fit your search criteria and let you contact us quickly to set up an appointment to see the property....before someone else rents the property. Until the landlord has the first month's rent and security deposit checks in hand with a signed lease it is not too late for someone else to rent the property.

We help renters from Antioch to Buffalo Grove.....from Waukegan to Woodstock and all the towns in between. If you are looking for a house, apartment, condo, town house, or room for rent we can help you in your search and help you find just what you are looking for in your price range. Just give us a call at 815-669-4944 and let us help you today!

Fox Lake has new low-income senior housing.

Seniors 55 and up have a new low-income housing option as of September 1st in Fox Lake with the Thomas Place Fox Lake. The new building houses 100 apartments both 1 and 2 bedroom and is located at the intersection of Route 134 and Nippersink Blvd. Visit our website to see the full story and find information on living in this beautiful new building.

Summer Time

Summer Time is a great time to sell or buy a house. If you are looking to buy a property in Lake County or McHenry County Illinois please visit our website and sign up for a free search to buy a house, rent a house, lease an apartment, or any of your real estate needs. If you are looking to move to Lake County or McHenry County, there are many fun things to do! The Chain of Lakes runs through both counties, giving residents a wonderful and relaxing place to spend time in the warm summer months. There are many parks and forest preserves in the area for camping, fishing, hiking, or just for a picnic.

If you are interested in selling your house, you can also sign up for a property search for houses similar to your property to see what things are selling for. Or simply call 815-669-4944 and ask us to perform a Comparative Market Analysis on your house to give you an idea of what you can sell your house for in the current market. Either way, pricing your house is a very important factor in selling your house.

Because of the current economy, many sellers are having to have a short sale done on their mortgage. The government has enabled programs that will help homeowners to move forward in these difficult times. When a homeowner decides they need to sell their property or are having trouble keeping up with the payments, they can call their bank and apply for a loan modification. The homeowner submits their financial statements to the bank and the bank decides according to government guidelines if the modification will work. This is called the Home Affordable Modification Program or HAMP for short.

A couple in Fox Lake, Illinois bought a home for $200,000 in 2004. By 2007 the husband, a union carpenter, was laid off and was not called back to work since. The wife, a school teacher, was left paying the mortgage and bills from her income when her husband's unemployment ran out. He has been searching for a job since he was laid off, and has worked on and off part-time since his unemployment stopped. They called us wanting to sell their house and we encouraged them to apply for the modification, which they were approved for. Their mortgage went from $1800 a month down to $1000 a month and the interest was lowered to 3% for 5 years, and then can go up to as much as 5%. The mortgage was turned into a 40 year from a 30 year, and there will be a "balloon" payment due if they sell their house before the 40 years is up.

If you do not qualify for the HAMP then you will have the choice to sell your home doing a short sale. A short sale is when the bank accepts less of a payoff than is owed to them. Often times this amount is written off as a loss to them, less often will they ask the homeowner to pay a portion of the amount back. We have only seen this happen when the homeowners have a significant income.

If you decide to have a short sale done on your home instead of letting the bank take it back at sheriff's sale you are making a good choice. It is never a good idea to just walk away from the house and leave it vacant, this creates wear on the house and the bank can prosecute for any damage done to the property. While a short sale is being done the homeowner can still live in the house, as it is often easier to sell a house when it has furniture in it. When there is an offer made on the property and the bank accepts, the homeowner will often have the standard 30 day closing time to move, buyers offering cash may request a sooner closing, but this can all be negotiated with the real estate agents.

A couple in Johnsburg, Illinois bought a house in the early 2000's and both had decent incomes. The husband was laid off in 2008 from his job as an auto mechanic, and the wife was laid off from her job as an office assistant. They were both able to find other jobs, but not making what they had been. They applied for the mortgage modification and were denied because they did not make enough money. The bank allowed them to do a short sale on their home and they walked away owing nothing to the bank, they are currently renting a house in Spring Grove, Illinois and plan to buy another home within their price range after they pay down some of their other debt.

Summer time will be over sooner than anyone realizes, we'd all love it to last forever, but as you walk into stores such as the McHenry Walmart they are already putting out the school supplies and fall clothes. Once children go back to school the buying time of summer slows down and as winter comes it slows more. Now is the time to buy a house or sell a house, start out by visiting www.metrovisions1.com, befriend us on facebook, and sign up for a property search today. When you see a property you'd like to view, simply call us and we will be happy to set up an appointment for you to see the property.

Qualifying for the Homebuyers Tax Credit - Expires April 2010

More Home buyers Qualify for Tax Credit

For additional information visit Metrovisions Realty, Inc. on the web or come to our office in Johnsburg, IL.

Ann Arbor, MI November 6, 2009 – Congress just passed an expanded version of the $8,000 first time home buyer tax credit that was set to expire on November 30. “The new version of the tax credit has the potential to stimulate the housing market even more than the old version due to the fact that more people will qualify under the new rules,” said Gibran Nicholas, Chairman of the CMPS Institute, an organization that certifies mortgage bankers and brokers. “Although the tax credit remains at $8,000 for home buyers that have not owned a primary residence in the last three years, it has been expanded to include a $6,500 tax credit for home buyers that have lived in their current primary residence for at least five consecutive years out of the past eight years. Under the old rules, move-up home buyers did not qualify.” Consider these three examples:

Example 1:
Jane purchased a home in Johnsburg, Illinois in 2002, lived there for 5 years as her primary home, moved out in 2007, and turned that home into a rental property. If Jane decides to buy a new primary residence in McHenry today, she would qualify for the $6,500 tax credit based on the fact that she lived in the same residence as her primary home for at least five consecutive years out of the past eight.

Example 2:
Harry purchased a home in McCullom Lake in 2004, and lived there for the past 5 years as his primary home. If Harry decides to buy a new primary residence in Fox Lake today, he would qualify for the $6,500 tax credit based on the fact that he lived in the same residence as his primary home for at least five consecutive years out of the past eight.

Example 3:
Nicole purchased a home in Round Lake Beach in 2006, and lived there for the past 3 years as her primary home. If Nicole decides to buy a new primary residence in Waukegan today, she would not qualify for the $6,500 tax credit based on the fact that she did not live in the same residence as her primary home for at least five consecutive years out of the past eight.

The tax credit applies to homes purchased for less than $800,000 before May 1, 2010. “If you sign a binding contract to purchase a home before May 1st, you would need to close on the transaction before July 1, 2010,” Nicholas said. “It works kind of like a gift certificate that can be redeemed for cash. You simply file a form with the IRS right after you buy your home, and the IRS will send you a check for the full amount of your credit.”

The income limitation for single tax payers went up from $75,000 under the old rules to $125,000 under the new rules. For married tax payers, the income limitation went up from $150,000 to $225,000. “This means that more people will qualify for the credit – especially in parts of the country with higher costs of living,” Nicholas said. “This should help stimulate parts of the housing market that may not have been impacted by the old version of the credit.”

There are many creative ways of structuring your home purchase transaction in ways that maximize the benefits of the credit. Here are a few examples:

· The credit applies to 1-4 unit homes as long as you live in one of the units as your primary residence – you could live in one unit and rent out the others. Go to www.metrovisions.com right now to set up a search for your income property now!

· If two unmarried individuals buy a home, and only one of the individuals qualifies for the credit based on their income or past home ownership status, the individual who qualifies for the credit can claim the full credit. (Note: In the case of married couples, both spouses must qualify for the credit.)

· The credit applies even if you have co-signers on your mortgage loan.

Visit www.metrovisions.com today or call Carolyn at 815-669-4944 to have a home buyers search set up specifically for you and what you are looking for. You specify what you are looking for, and Carolyn will send you a daily report of houses for sale in the areas you are looking for. When you see something you like, call Carolyn at 815-669-4944 and set up an appointment to look at the property. Remember, it is important you act quickly, this credit expires in April of 2010! From Richmond to Crystal Lake and Zion to Buffalo Grove, Metrovisions Realty, Inc. has a professional real estate agent ready to help you buy the house of your dreams!

Foreclosure in McHenry County, Illinois

I'm sure that you may have been hearing "foreclosures are on a decline" lately.....and this may be true, but there are signs that is it not true as well.

Check out Metrovisions Realty, Inc. on the web.

Everyone has theories about how this financial meltdown started, some blame it on people who should never have been able to get loans in the first place defaulting. Some blame it on greedy banks, others will say that it is because of lazy people who don't want to work but want to have everything working people have. So what is the truth? It could be each of these things, a combination of all.

The government, in 2002, started with this speech:

http://www.hud.gov/news/speeches/presremarks.cfm

This 2002 speech started the beginning of low down payments, tax credits to make the houses more affordable, and the rules are too strict so lets make that more lax. People who qualify will not have to save the money to come up with a down payment, the government will supply it. And by 2010 we will have 5.5 million homeowners.

It is 2010. In just the first half of 2009 there were a reported 1.5 million foreclosures.

The present administration is trying to help these people losing their homes. If you haven't lost your job and can still make your payments they will help you to refinance at a lower rate for a period of time. This has helped many people lower their mortgage payment to a more reasonable rate so they have more money to live on during the month. If enough people do this it will help to free up some money for people to spend.

Banks do not want to have to report to the government how high their foreclosure rates are right now, so the banks are holding off on some of the people who are not paying. This keeps the banks numbers low and the government off their back. How long can this last? The banks are not going to be able to let homeowners stay with out paying forever.

If you are in foreclosure, you should seriously consider selling your house. Yes, when you are in foreclosure you CAN sell your house. If you owe more to the bank than your house is worth you can do a short sale, in which case the bank accepts less than you owe to sell the property. The bank allows the costs of selling to be absorbed into the sale, so no money will come from the homeowner. The banks usually do not ask for anything, but in rare cases if the homeowners are in foreclosure and can afford the payments, the bank may ask for an agreed amount to be paid back to them.

Pricing your property at the same price as similar homes in the area are selling for is essential to getting an offer on your property. This may be significantly lower than you owe on the property, but if the price is not comparable to what has been selling no one will even look at your house.

Once an offer is made on your property, then the work begins. The bank will need paperwork from the homeowner, as well as documents and letters showing the reasons behind the foreclosure. Once this is provided to the bank they begin crunching numbers and deciding what they will be willing to accept to pay off the loan.

The best thing to do sometimes has to be to cut your losses and move on. A very difficult thing to do, but well worth it in the end.

2010 Census

It's time for the 2010 Census! You will start receiving them in the mail in March, and as I'm sure you are hearing from just about everyone.....it's important to fill it out and send it in!

There are 10 questions and it comes with a postage-paid envelope to send it back. If you do not send it in, you will receive a visit from a census worker. Your responses are strictly confidential and protected by law. The 2010 Census will not be released for 70 years, and how wonderful it will be for your grand-children or great-grandchildren to look at the 2010 Census and see your name!

The previous census work has proved invaluable to genealogy research. It has helped people to find long lost relatives and lines of family that have not been in contact.

The state and federal government distributes funds based on the population calculated off the census, so you can see how important this will be to all of our communities. These funds help provide for our schools, transportation, healthcare, housing, and much more!

If you do not receive a census form please call 1-866-872-6868.

If you have any questions or for more information please visit www.2010.census.gov

Visit our website at www.metrovisions.com to start a search for homes for sale. Our agents will work hard for you to find the house that suits you, and nothing is more exciting than walking into a house that you know is where you want to call home.

Our agents work in all of McHenry and Lake counties. From Zion, Winthrop Harbor, Waukegan, North Chicago, Round Lake, Grayslake, to Hebron, Woodstock, Crystal Lake, McHenry, Johnsburg, Island Lake, Bull Valley, Marengo, and everywhere in between, if you are looking to buy a house we will help you find it!

If you purchase a house before April 30th 2010 you may qualify for tax credit!!! Call us today at 815-669-4944 for more details.

Buy a Bank Owned property in the snow!

How much snow is there where you are? In Johnsburg there isn't that much snow yet! In Lincolnshire I have heard there is more snow than here.

We were out looking at houses today, which is a difficult thing to do with lots of snow on the ground. The bank owned properties are rarely shoveled, but we'll bring a shovel to shovel our way in if we have to!

When you are ready to buy a house, no amount of snow should stop you, especially right now, when you can get government tax credits. If you have the means to buy a house you should start looking for a house right now, today. Go to our website and sign up for a free search that will email you houses based on your self set criteria.

Spring Grove, IL buy - sell my home or house

Metrovisions Realty, Inc. is offering a free gift $100 card to Home Depot when you purchase your home through us. This offer expires June 2010.

List your home, house, land or real estate with us on the MLS and recieve a 15% discount on your sales commission call us at 815-669-4944 for details.

Did you know that a first time home buyer can get up to a $8,000.00 credit for buying a home before June 31, 2010? First time home buyer mean that you have not bought or owned a home for 3 years.

For more information visit us on the web at Metrovisions Realty, Inc. or come to our office in Johnsburg, IL

Sping Grove, Richmond, McHenry, Fox Lake, Round Lake, Grayslake, Wood Stock, Crystal Lake, Ingleside, Lake Villa, Antioch, Holiday Hill, Lake in the Hills, Gurnee, Volo, Cages Lake, and Island Lake.