A short-sale is a type of distressed property sale.
It is not a traditional re-sale of a property.
In a short-sale, a lender agrees to accept a payoff
that is less than what they are owed.
In this type of transaction, the lender comes up short
(hence the term short-sale).

Ironically, short-sales usually take a lot longer than
a traditional sale. Some real estate professionals
joke that they should have been named “long-sales”.
It is not unusual for a short-sale to take up to
3 months AFTER an offer has been accepted by the seller.

The reason that it takes so long is because the sale
requires 3rd party approval from the lender(s). If a
property only has one lien on it, it makes the short-sale
process much easier. This is because you only have to deal
with one lien holder.

Often times, there are multiple liens on the property.
So, you have to get written approval from each lien holder involved.
These types of short-sales are more difficult (but not impossible).
All short-sale properties have a 1st lien, which is usually the
primary mortgage. Some properties also have a 2nd lien that was
a home equity line of credit (HELOC). In these types of scenarios,
you have to negotiate with the 2nd lien holder as well.
On the bright side, many 2nd lien holders will settle for as
little as 6% of the debt.

If you are considering purchasing a short-sale property, I would
recommend researching how many liens are currently on the property.
Your real estate agent will be able to do this research for you.

If a property has multiple liens on it, the short-sale process will
probably take longer. So the name of the game is patience.
There are pros and cons with pursuing a short-sale property as a buyer.
The main downside is that the process takes a long time and it can be
frustrating. The main benefit to purchasing a short-sale is that your
patience will usually be rewarded with a great deal.
Short-sales typically sell for 10% to 20% below market value!

Benefits for a Seller:

A successful short-sale is really a win-win situation for all parties
involved. The seller gets to avoid having a foreclosure on their
credit report for the next 7 to 10 years. In many cases, the lender
may also forgive the deficiency debt. There was actually a law that
passed that made sure that the forgiven debt was not counted as
income for tax purposes. But this law is set to expire at the end of 2012.

FYI: The Mortgage Forgiveness Debt Relief Act Expires in 2012

If you are thinking about selling your primary residence,
and you are upside-down in your mortgage, do it in 2012
or forever hold your peace?after this act expires, the
forgiven debt will be viewed as taxable income (doh!)

Benefits for a Buyer:

If a buyer is patient, they can pick up a great home at a
nice discount. Generally speaking, short-sale homes are
in better condition than your average foreclosure.

Foreclosures have usually sat vacant for many months.
They may have been vandalized too. However, the short-sale
process can be frustrating. The bank can take a long time
to make a decision. And many times, the bank will ask for
more money from the buyer, seller, or both to make the deal
work. However, it will all be worth it in the end when
you get a home at 10% to 20% below market value.

Benefits for a Lender:

Although a lender would rather not accept less than what
they are owed, a short-sale beats a foreclosure any day.
Today’s unsold short-sales are tomorrow’s foreclosures.

The lender knows that if the property goes to foreclosure,
they will have to sell the property at a steeper discount
when they put it back on the market. Also, the time value
of money is important. Every month that a lender holds
a property in its portfolio, they are losing money.

2011 Sales Analysis for Short-sales in Bronzeville Chicago

We can gain a better understanding of short-sales by analyzing
transactions that successfully closed. I did a custom data analysis
of the Bronzeville neighborhood in Chicago, Illinois for 2011.

According to the MRED MLS system, there were 59 short-sale transactions
for the 12 month period ending 12/25/2011. That is an average of five
closed short-sale transactions per month! This number will probably increase in 2012.

Here are a few things that jump out at me:

* Most of the short-sales are happening with Bronzeville condos.
I expect this trend to continue.

* The biggest discounts are being realized with Single Family Homes.

* The amount of time it takes to get the short-sale approved is pretty
consistent across all property types. It takes about 3 months for
the bank to approve the average short sale. And this is AFTER a
written offer has been submitted by a qualified buyer.

If you would like a FREE evaluation of your specific situation,
please contact me. I have experience with short-sales,
and I have helped distressed homeowners avoid foreclosure.

———————————————————————–

Until the next time,

Mark Killion
Real Estate Broker
Century 21 Affiliated
5200 S. Harper Ave
Chicago, IL 60615
24 Hour Voice Mail: 312-242-1822
Send me a note!

Visit me online: www.773property.com

EQUAL HOUSING OPPORTUNITY

I decided to analyze Chicago Rental prices for
the 2nd quarter of 2010. This analysis shows
the average rent price by neighborhood and
bedroom count.

This report can be very useful for both
investors and tenants. I also provide assistance
to both groups. I can help investors buy
and sell investment properties. I can also
help tenants lease quality condos and homes.

Click Here For Report

If you have any questions, please feel free to
leave a comment or visit my website:

Bronzeville Real Estate

Until the next time,

Mark Killion
Real Estate Broker
Century 21 Affiliated
5200 S. Harper Ave
Chicago, IL 60615
24 Hour Voice Mail: 312-242-1822
Send me a note!

Visit me online: www.773property.com

EQUAL HOUSING OPPORTUNITY

In many areas of the city, the number of properties
sold is trending up while the selling price is
trending down. So demand is being driven by
increased affordability and the tax credit.

Also, investors are back in the market snatching up
deeply discounted bank owned properties. The
distressed property sales are pulling down Chicago’s
median value. There are properties on the South
and West Sides selling for $20,000! But, I think
that certain areas, like the South Loop and the Near
North side, are stabilizing. Sales activity in those areas
is high, but there is also a lot of inventory on the market.

Hopefully, when the tax credit expires, consumer
confidence will be higher than it is currently. The
timing is good, because it expires during the busy
Spring selling season. So right when it expires,
seasonal demand will be picking up.

I think we hit bottom around July/August 2009.
There is a lot of pent-up demand out there. But there
is even more uncertainty. The main concern now is
job creation. But, I think overall that 2010 will be a better
year than 2009.

Until the next time,

Mark Killion
Real Estate Broker
Century 21 Affiliated
5200 S. Harper Ave
Chicago, IL 60615
24 Hour Voice Mail: 312-242-1822
Send me a note!

Visit me online: www.773property.com

EQUAL HOUSING OPPORTUNITY

One thing I have learned from this recession is this:
People are not going to buy a property, unless they
are getting an incredible bang for their buck. I have
also learned that this is not a buyer’s market, it is really
an investor’s market. It takes cash to get most deals done
these days.

In light of this realization, I present “Rock Bottom Real Estate“.
If you have the cash, you can get a Bungalow in Chicago, with at
least two bedrooms, and two bathrooms, for under $40K!!! That
is less than 20% of the median Chicago Home Purchase Price.
We’re talking dimes on the dollar.

You can also find multi-unit properties for less than $50K! The
only catch is that you have to pay cash. No financing or hard
money loans will be considered.

Granted, all of these properties will require some rehab work.
But at that price, there has to be some profit in there somewhere.
Property values have fallen dramatically, but rents have not.

This means this is a great opportunity to turn a rehab into a rental
or a rent-to-own property. Then you can sell your cash flowing
property to the next investor at a discount and still make a tidy profit.
There is also an extremely high demand for single family home rentals.

Note: I would stay away from flipping condos however, because it
will be harder to resell condos in the current mortgage environment.

Without exaggeration, I can honestly say, this may truly be one of the
greatest times to buy real estate in the last 30 years. This is because
banks are scared to lend money, so properties are just sitting on the
market. On top of that, more foreclosures are hitting the market everyday.

Right now, cash is king! If you have the cash (or 401K, IRA, CD, etc.)
you can get Real Estate at super deep discounts!!!

WITHOUT FURTHER ADO

Please click the following link for: Bungalows under $40K!

If you would like more information, please send me an e-mail!

Until the next time,

Mark Killion
Real Estate Broker
Century 21 Affiliated
5200 S. Harper Ave
Chicago, IL 60615
24 Hour Voice Mail: 312-242-1822
Send me a note!

Visit me online: www.773property.com

EQUAL HOUSING OPPORTUNITY

1. Define your needs.

Congratulations on your decision to purchase a new home! It is important to
select a professional real estate agent to work with you before you begin
house hunting, so that your agent can help you define what kind of home
and neighborhood would best suit your desires and needs. The finer the
details on your wish list, the more effective your home search will be.
To further define your needs, you may want to divide your lists into negotiable
and non-negotiable items, so your agent can operate with some flexibility when
scouting for homes on your behalf.

2. Get pre-approved.

Now that you know what you want in a home and neighborhood, you need to
find out what you can afford. The best way to do this is to get prequalification
or preapproval for a home loan. Your real estate agent can refer you to a
mortgage broker to begin the process. In most markets, preapproved buyers are
preferred by sellers over those who are prequalified. Your preapproved status lets
the seller know:

* You have gone through an extensive financial background check.
* A lender is willing to do business with you.
* The likelihood of unexpected obstacles regarding financing is minimal.

3. Let the house hunting begin!

Now you are ready to embark on your home search — an endeavor that can prove
overwhelming if not approached with some forethought. The most efficient route is
to allow your real estate agent to do the initial scouting for you. Using your wish list
as a guide, he or she will alert you of new and existing listings that have strong
potential. If these listings pique your interest, your agent will arrange home tours at
your convenience. Many agents send alerts via email — sometimes as often as daily,
depending on the available inventory in your market. Let your agent know how you’d
like to receive these alerts, whether by phone, email or fax.

You also can do some research on your own. Read local real estate publications,
contact your local neighborhood associations, visit the local chamber of commerce,
surf the Internet, or drive around your favorite neighborhoods. While these methods
certainly can lead to your dream home, it’s important to note that 82 percent of home
sales are the result of agent connections.* That means it’s more likely your agent will
find your dream home through being in the real estate business than you driving around
on the weekends.

* National Association of REALTORS®

4. Make an offer.

When you’re ready to make an offer on a home, your real estate agent will help you
determine the offer price by reviewing recent sales of homes similar in size, quality and
amenities. With your input, your agent will draft a written contract that outlines what
needs to be done by both parties to execute the transaction. If the seller accepts the
offer, the document becomes a binding agreement, so it is imperative that you carefully
review it with your agent and speak up if anything is not clear to you. It’s important to
note that if the seller changes any aspect of the offer, it is not a binding agreement
until the buyer agrees to the seller’s changes.

5. Strike a deal.

Sometimes, you get lucky and the seller accepts your offer as is. However, in most
instances, the seller will make a counteroffer. This is where your real estate agent’s
experience in negotiations will be invaluable. Keep in mind almost everything is
negotiable when you are buying a house. This can give you a great deal of leverage
in the buying process — that is, if you have adequate information and you use it in
an appropriate manner.

Some items you may negotiate:

* Price
* Financing
* Closing costs
* Move-in date
* Repairs
* Appliances and fixtures
* Landscaping
* Painting

Remain in close contact with your real estate agent so you can quickly review any changes
from the seller. Remember: Bargaining is not a winner-take-all deal. It is a business process
that involves compromise and mutual respect.

6. Prepare for the closing.

When an offer becomes a binding agreement, your real estate agent will help you tackle the
checklist of action items that you, as the buyer, have agreed to perform prior to closing.
Depending on how the responsibilities are divvied up in the agreement, this is typically when
you will:

* Conduct a home inspection.
* Get an appraisal and finalize your financing.
* Secure title insurance.
* Shop for a home warranty.

Having these procedures done in a timely and professional manner is a must, as any delays
could threaten a successful closing. A first-rate real estate agent should be able to serve as
your “one-stop shopping??? referral source for service providers. Your agent also should serve
as your advocate, helping to coordinate activities and making sure the vendors have access
to the property to perform their jobs.

7. Close the deal.

Congratulations! The moment you’ve been anticipating has arrived. The closing is
where home ownership is legally transferred from the seller to the buyer. It is a
formal meeting that most parties involved in the transaction will attend. Closing
procedures usually are held at the title company’s or lawyer’s office. The closing
officer will coordinate all the document signing and the collection and disbursement
of funds.

In advance of your closing date (24 hours at minimum), your lender will send a final
closing statement that outlines your closing costs, if applicable. Your real estate agent
will review this document with you to ensure its accuracy, as well as help you gather
any necessary documentation that you’ll need to bring to closing.

If you would like more information on buying Chicago Real Estate,
please send me an e-mail.
You can also visit me online at www.773property.com

I am a licensed REALTOR that specializes in Chicago Real Estate.
Although I service all areas of Chicago, I work mostly on the South side.
My office is near the Bronzeville and Hyde Park neighborhoods.
My services include, but are not limited to, the following:

* Helping Owners Avoid Foreclosure
* Helping First Time Home buyers realize their dream
* Helping Sellers find qualified buyers
* Helping tenants lease luxury condo rentals

Until the next time,

Mark Killion
Real Estate Broker
Century 21 Affiliated
5200 S. Harper Ave
Chicago, IL 60615
24 Hour Voice Mail: 312-242-1822
Send me a note!

Visit me online: www.773property.com

EQUAL HOUSING OPPORTUNITY