New short sale guidelines beginning April 2010.

Borrowers will now receive pre-approved short sale terms before listing the property. These terms will also include the minimum net proceeds that the lender will accept.

The mortgage servicer will now have just 10 days to approve or disapprove a short sale request.

The new guidelines will now prohibit loan servicers from requiring a reduction in the commission earned by real estate professionals that was agreed on in the listing agreement.

There will be a $1500 relocation assistance incentive for the homeowner.

The program requires that the borrower is fully released from future liability for the first mortgage debt.

Mortgage servicers will receive a $1,000 incentive for every completed short sale transaction.

Qualifying properties must be the homeowner’s principal residence, and the homeowner must be either already delinquent on the mortgage, or show that default is imminent.

The Home Affordable Foreclosure Alternatives Program applies to loans that are not owned or guaranteed by Fannie Mae or Freddie Mac. Fannie and Freddie Mac are working on a similar program.

Source: The Short Story on Short Sales

FHA Sets Aggressive Goals For 2010

FHA has insured nearly a quarter of all new loans made this year and about 80 percent of that business is from first-time homebuyers. The total dollar volume of FHA mortgages exceeded $300 billion dollars in the fiscal year 2009. Approvals for purchases, refinancing and reverse mortgages rose 70 percent increase within the last year. FHA has set even more aggressive goals for Fiscal year 2010, so these numbers are expected to continue to rise over the next year.

Hoffman Estates, IL 60194 - Housing Market

According to the Northern Illinois MLS there are currently 169 active listings of single family detached homes as of 12/09/2009.

The median list price is $320,000.00

In the last 30 days there have been 18 closed sales.

The median sales price was $277,500.00

At the current rate of absorption there are 9.38 months of unsold inventory in Hoffman Estates

Chinese Defective Drywall

During the housing boom, more than 500 million pounds of possibly defective Chinese drywall was imported to the U.S. According to the Associated Press, that was enough material to build around 100,000 homes. Environmental testing sponsored by a national consumer group shows defective Chinese drywall has been found in homes in 41 states, the group's leader said.

The drywall is alleged to have high levels of sulfur and, according to homeowners' complaints, the sulfur-based gases smell of rotten eggs and corrode piping and wiring, causing electronics and appliances to fail.

The fumes have also been associated with respiratory and sinus problems in some residents. In some homes, the drywall problems have been so severe that families have had to move, and some builders have begun gutting and replacing drywall in the buildings.

The largest number of complaints have come from Florida and Louisiana, where a warm, humid climate encourages the emission of sulfur fumes. Complaints have also come from Mississippi, Alabama, Virginia and North Carolina.

Most of this drywall was imported to the U.S. between 2004 and 2008 at the time of the building boom. Is there defective drywall in the Chicagoland area? If you are buying a house that was built or remodeled in those years a professional home inspection is recommended.

Plano, IL 60545 - Housing Market Analysis

According to the Northern Illinois MLS there are currently 103 active listings of single family detached homes as of 12/08/2009.

The median list price is $185,000.00

In the last 30 days there have been 13 closed sales.

The median sales price was $145,000.00

At the current rate of absorption there are 7.92 months of unsold inventory in Plano, IL 60545

Medinah, IL 60157 - Housing Market Analysis

According to the Northern Illinois MLS there are currently 32 active listings of single family detached homes as of 12/08/2009.

The median list price is $383,400.00

In the last 30 days there have been 2 closed sales.

The median sales price was $237,500.00

At the current rate of absorption there are 16.00 months of unsold inventory in Medinah, 60157

Hanover Park 60133 - Housing Market Analysis

According to the Northern Illinois MLS there are currently 118 active listings of single family homes as of 12/08/2009.

The median list price is $199,250.00

In the last 30 days there have been 20 closed sales.

The median sales price was $162,000.00

At the current rate of absorption there are 5.90 months of unsold inventory in Hanover Park, 60133.

Channahon, IL 60410 - Housing Market

According to the Northern Illinois MLS there are currently 94 active listings of single family homes as of 12/08/2009.

The median list price is $257,200.00

In the last 30 days there have been 11 closed sales.

The median sales price was $230,000.00

At the current rate of absorption there are 8.54 months of unsold inventory in Channahon, 60410.

River Grove - 60171 Housing Market Analysis

According to the Northern Illinois MLS there are currently 52 active listings of single family homes as of 12/08/2009.

The median list price is $222,325.00

In the last 30 days there have been 4 closed sales.

The median sales price was $196,500.00

At the current rate of absorption there are 13 months of unsold inventory in River Grove.

The Residences of Sherman Plaza - Evanston, IL

The Residences of Sherman Plaza is a 252 unit, 25 story postmodern high rize building built in 2006 in downtown Evanston.

Sherman Plaza is the largest mixed-use development in a suburban downtown. In addition to the condo's the building has 152,000 square feet of retail, plus a parking garage for 1,585 cars. The building occupies almost an entire city block, bounded by Church and Davis Streets and Sherman and Benson Avenues. Sherman Plaza is adjacent to the Davis Street train station, which serves as a junction point for two commuter rail lines.

Check out HOA finances before buying condo

Thanks to the economic downturn, condominium prices are dropping across the country. But if the homeowners association is in the red, a condo that looks like a steal can quickly become a money pit, leaving buyers on the hook for a lot more than they had bargained.

Read the article at Bankrate.com

Mortgage rates drop again

The benchmark 30-year fixed-rate mortgage fell 10 basis points, to 5.7 percent, according to the Bankrate.com national survey of large lenders. A basis point is one-hundredth of 1 percentage point. The mortgages in this week's survey had an average total of 0.48 discount and origination points. One year ago, the mortgage index was 6.53 percent; four weeks ago, it was 5.65 percent.

The benchmark 15-year fixed-rate mortgage fell 9 basis points, to 5.07 percent. The benchmark 5/1 adjustable-rate mortgage fell 9 basis points, to 5.17 percent.

Read More at Bankrate.com

Lombard, IL 60148 - Housing Market Analysis

Lombard is located approximately 24 miles west of the Chicago "Loop" in suburban Dupage county.

Known as "the Lilac Village" Lombard is an established residential community, which traditionally served as a market center for surrounding rural areas. Settlers came when the railroad route westward from Chicago followed the St. Charles Road Trail.

The population has more than quadrupled since 1960, as the village has shared in the economic growth that has come from an expanding Chicago metropolitan area. As of the 2000 census, Lombard had a total population of 42,322. A 2003 recount gave the village a population of 43,251. The total land area of Lombard is 9.9 square miles.

The village's municipal neighbors include Addison to the north, Villa Park to the east , Downers Grove to the south, and Glen Ellyn to the west.

Transportation links include U.S. Route's 64, 38 and 58. The I-88 East-West tollroad passes on the southern edge and the I-355 North-South tollroad is on the western border of the village. Commuter train service to Chicago is available in downtown Lombard. O'Hare International Airport is approximately 9 miles northeast.

According to the Northern Illinois MLS the median sales price in Lombard in the twelve months ending April 19, 2009 for detached homes was $260,000.00 with 162 days on the market, with 261 sales.

Median sales prices have decreased -5.62% , sales volume has decreased -22.32% and marketing times have increased +22.72% over the previous twelve months.

In the twelve months ending April 19, 2008 the median for a detached home was $275,500.00 with 132 days on the market, with 336 sales.

There are currently 242 active listings of detached homes in Lombard. At the current level of absorption of 21.75 sales per month this represents a 11.12 month supply of existing housing inventory. This is an oversupply. Housing prices are expected to continue declining until this inventory of surplus homes (excess supply) is reduced to more typical levels.

If you have an active listing or need to sell in 2009 now is the time to get an appraisal. The market has changed and only the most competitively priced homes will be selling soon.

Make sure that your listing is competitive, get a current appraisal. Complete appraisals of single family homes and condominiums start at $275.00. this is a small price to pay for knowledge that will help you position your house to sell in the current market.

Citywide Services provides residential appraisal service in Lombard, Illinois 60148. Our appraisers are state certified and have experience with single family homes, town houses, condominiums as well as small residential income properties. FHA and conventional. For all your Dupage County appraisal needs contact Citywide 312-479-5344