Successful Short Sales in Arlington Heights and Streamwood: Acronyms You Need to Know

Knowledge is power. That’s true whether you’re running a Fortune 500 Company or investing in short sales in Arlington Heights and Streamwood. To increase your level of knowledge and success when investing in short sales in Arlington Heights and Streamwood, here are the definitions and important information for four acronyms: BPO: This stands for Broker Price Opinion A BPO is, essentially, the same thing as an appraisal. In a short sale transaction, the lender hires a broker to appraise a home. The broker assesses the house both inside and out to determine its current market value. If a BPO has not been ordered by the lender or if you cannot find out what the value of that BPO is, you may be at a big disadvantage when trying to submit a short sale package. The closer your short sale offer is to the BPO, the better chance you have of the short sale transaction going through. NOD: This stands for Notice of Default This is the first official stage in the foreclosure process. The lender has a right to file the Notice of Default after the very first late payment, but the NOD is not usually filed until 60 to 90 days after a late or missed mortgage payment. In some states, the Notice of Default is also attached to the home, generally on the front window, like a big scarlet letter. It states that the borrower is in default, behind in the mortgage payments, and if the payments are not paid up, the lender will seize the home. This is a crucial step in purchasing a short sale, because if the lender has not issued an NOD, they won't consider your short sale offer. NOT: This stands for Notice of Trustee’s sale The NOT is a recorded notice that a trustee’s sale has been scheduled. That means the clock has really started ticking! If all late payments, fees, and penalties aren’t paid up, the property will be auctioned off to the highest bidder. The minimum amount is usually whatever the lender needs to pay off the first loan and other fees. The buyer who wins the auction gets the property as-is. This includes all liens, whether or not the lien has been recorded. Title insurance is generally not available for up to two years. This can be a significant risk for a buyer. Many properties don’t sell at auction so they go to the lender and become REOs or Bank Owned Properties… REO: This stands for Real Estate Owned by the lender An REO, also known as a Bank Owned Property, is a property that goes back to the lender after an unsuccessful foreclosure auction. So when you hear the term REO, it means that the lender now owns the home. Usually, the lender asks a real estate agent to list the property for sale. The initial listing price is often high. Hire a real estate agent who is knowledgeable about short sales to negotiate the price for you and help you navigate the complicated short sale process through to a successful closing. If you’re interested in investing in real estate or short sales in Arlington Heights, Streamwood, I can help. Give me a call today at 847-670-1060 or 630-529-0022 or email me at dave@davebulava.com for more information. Keyword/Tag: short sales in Arlington Heights, Streamwood Links: Broker Price Opinion http://www.investopedia.com/terms/b/broker_price_opinion.asp#axzz1hrv9qXP7 Notice of Default http://www.nolo.com/dictionary/notice-of-default-term.html Real Estate Owned Link to REOs you’re promoting or link to: http://www.investopedia.com/terms/r/realestateowned.asp#axzz1hrv9qXP7

Safety Tips for Using the Fireplace in Your Streamwood Home

Is there anything cozier than enjoying a warm fire inside during the winter months? There is something primal about watching the flames of a contained fire that reaches back into our ancient human past. If you’re lucky enough to have a fireplace or woodstove in your Streamwood home, please follow these precautions:

• Call in a chimney sweep. Every year, you should have your chimney cleaned to remove creosote buildup. This keeps air flow unobstructed and prevents a chimney fire, which would be devastating to your Streamwood home. A professional chimney sweep should also check for cracks in the flue liner and proper functioning of the damper.
• Inspect your chimney cap. The chimney cap keeps the rain and snow out of your flue. It also prevents birds or other animals from entering the flue. The sides of the chimney cap are wire mesh, which also needs to be kept clear of creosote. Otherwise air flow will be hampered and smoke will enter your home instead of being properly drawn up the chimney.
• Burn only dry, seasoned wood. Wood that has not been aged long enough will sputter, smolder and smoke, causing excess build up of creosote.
• Burn only untreated wood. Do not burn treated wood, plastic or other debris in your fireplace or woodstove. These give off toxic fumes you do not want inside your home.
• Wait until ashes are cool before removing them. If you try to clean out the fireplace or stove while there are live coals or embers in the ashes, they will give off smoke into your home while in the ash bucket. They could also result in burns, if dropped on the floor.
• Install a carbon monoxide detector. Carbon monoxide is a deadly gas produced during incomplete combustion. The only way to know if it is in your home is by using a detector.
• Keep the damper closed when not burning a fire. This will prevent the warm air from going up the chimney.

If you’re looking for a Streamwood home with a fireplace, I can help you buy one. Give me a call today at 630-529-0022 or email me at dave@davebulava.com. Keyword/tag: Streamwood home Links Creosote http://www.hearth.com/econtent/index.php/articles/creosote_from_wood_burning_causes_and_solutions Damper http://www.ehow.com/video_4997719_do-open-fireplace-damper_.html Carbon monoxide http://www.epa.gov/iaq/co.html

How to Install a Programmable Thermostat in Your Arlington Heights Home

Here is a painless way to reduce your energy use and your heating bill: Set your thermostat to go down 5 to 10 degrees while you’re gone all day and while you sleep at night. This could reduce your heating bill by 15% without compromising comfort. Programmable thermostats cost anywhere from $30 to $150, so they quickly pay for themselves. By programming your thermostat to return to your comfort level before you arrive home or get up in the morning, your Arlington Heights home will be just as comfortable as what you’re used to, and you’ll reduce your carbon footprint. Here is how easy it is to install a programmable thermostat:

• Turn off the circuit breaker for the thermostat. Since you will be handling wiring, you must cut off the electricity going to the thermostat first of all. If your Arlington Heights home has electric baseboard heat, don’t do this update yourself--the wiring carries higher voltages and should only be worked on by a qualified electrician.
• Remove the old thermostat. Older thermostats contain mercury, so handle it carefully and do not throw it into the trash. Check with local recycling centers or waste handlers to learn how to safely dispose of mercury.
• Tape wires to the wall. You don’t want the wires to fall inside the wall. Note where they were attached to the old thermostat and label them accordingly.
• Mount new wall plate. Follow the instructions that came with the new unit to mount the plate over the area of the old base.
• Connect new thermostat to wiring. Again, follow the instructions included with your new unit.
• Mount the new thermostat onto the new base.
• Turn the circuit breaker back on.
• Program the thermostat following manufacturer’s instructions. Digital devices can be hard to program, so hang onto those instructions and keep them where you can find them.

Now your Arlington Heights home can be greener, more economical and more comfortable. Want to buy a home that’s green, energy-efficient and comfortable? I can help. Give me a call today at 847-670-1060 or email me at dave@davebulava.com. Keyword/tag: Arlington Heights home Links Carbon footprint http://www.nature.org/greenliving/carboncalculator/index.htm Qualified electrician http://www.electriciansnetworks.com/ Mercury http://www.coshnetwork.org/node/360

Short Sales in Real Estate Demystified

Short Sales in Real Estate Demystified If you're a potential buyer of real estate, when scanning the listings of homes for sale, you may see references to “short sales.” You may hear vague warnings about avoiding short sales from some people, while others tout the advantages. So who is right? Well, it depends…   Short Sales Defined First, what is a short sale? A short sale is a situation in which the current market price of a home would not, in fact, cover the amount the homeowner owes on the mortgage. Yes, that's what people mean when they say they are “underwater” – they owe more on their home than it is worth. Since the mortgage can't be paid off by the sale of the house, short sales become an option, albeit a complicated one. The seller and the bank (or banks, as is sometimes the case if there are multiple mortgages on the house) become, if the bank agrees, essentially co-sellers of the house. Any offers considered by the seller have to be approved by mortgage holder(s). Seller Short Sale Advantages Short sales can be a win-win situation for the seller and the mortgage company. The seller is relieved from his debt without the greater stigma of foreclosure attached to his credit standing. The mortgage company often gets more money than it would in a foreclosure auction, and without the time and expense of the foreclosure process. Buyer Short Sale Advantages For potential buyers, short sales can have some advantages. The biggest possible advantage is a better price. Keep in mind though that short sales are seldom amazing deals. The bank will usually do an analysis on comparable properties in the neighborhood, and will likely turn away any offers that fail to come in that range. What you are more likely to get with a short sale purchase is a home that has been cared for and recently lived in. Short sales are still officially owned by the seller, not the bank (as in foreclosures), and so someone is more likely to be living there, mowing the lawn, cleaning the kitchen and making repairs. Short Sale Buyer Complications The bad news on short sales is time and administrative detail. With the companies holding the lien having final say on the process, their review can delay acceptance of short sale offers, sometimes for months. And, of course, if there are multiple lien holders, the time can increase dramatically. A short sale can take three months – not much longer than a standard closing – but they can also take six months or longer. If that level of timing uncertainty doesn't work for you, you might want to consider other options in your quest for real estate. Whether you’re considering buying or selling a short sale, I can help. Give me a call today at 847-670-1060 or email me at dave@davebulava.com for more information. Links: Foreclosure auction http://real-estate.lawyers.com/residential-real-estate/Buying-Foreclosed-Property.html Short sale buyer http://www.ehow.com/how_2186920_buy-_short-sale_-house.html Delay acceptance of short sale offers http://www.heraldtribune.com/article/20100418/article/4181065    

Home Sharing: Is It For You?

Home Sharing: Is It For You? Across America, the decision to live with roommates in later years is becoming more common as the economy stagnates. According to the Census Bureau, from 2009 to 2010 the number of thirty-somethings living with non-family roommates rose from 10.6 million to 12 million, which is an increase of 13 percent. If you’re considering sharing a home with others, here are some of the benefits you could reap:

• Lower monthly payments: Whether through divorce, widowhood or empty nest syndrome, many people are left with too much house and way too much mortgage debt. One solution is to invite a compatible friend or two to move in and split that mortgage payment. It will also mean splitting the utility bills: win-win.
• Companionship: Sure, you have friends, but after hanging out with them, it can be a bit lonely to come home to an empty house late at night, if not downright scary. Most people enjoy sharing a meal rather than eating alone. And if you get sick, it’s really nice to know somebody will be around to check on you and take care of household basics until you get back on your feet.
• Shared responsibilities: This runs the gamut from cooking, cleaning, home maintenance, yard maintenance… you get the picture. Being the sole proprietor of your [city] home can be very demanding; it can be a real relief to share the chores and decision-making with others.
• Better health: Studies show that loneliness leads to higher rates of anxiety and depression. Even if you don’t feel lonely, psychologists say that having less interaction with others can raise stress hormones and blood pressure. These are measurable physical effects of social isolation.
• The chance to live in a nicer home or neighborhood. When you split the bills, you can afford a nicer place than when you’re on your own. (Remember Golden Girls?)

If you’re looking for the perfect home to share with friends, I can help! Contact me at 847-670-1060 or dave@davebulava.com. Links: Living with non-family roommates http://www.yesmagazine.org/happiness/the-roommate-revolution-why-living-alone-is-overrated?utm_source=sep11&utm_medium=yesemail&utm_campaign=Roommate Home maintenance Link to blog post titled “Fall Maintenance Checklist” Social isolation http://news.consumerreports.org/health/2010/08/health-risks-of-loneliness-social-isolation-the-unrecognized-killer.html  

Renters: Are You Ready to Buy Real Estate? Pros and Cons of Home Ownership

Renters: Are You Ready to Buy Real Estate? Pros and Cons of Home Ownership If you're sitting in your apartment right now thinking: I wish I could paint it, but my lease doesn't allow it, maybe it's time to talk to a real estate agent about purchasing a new home. Before you rush off to the store to look at paint samples or, more importantly, sign on the dotted line of any mortgages, consider the pros and cons of buying.   Pros

1. Financial Investment: Given the gloomy news on foreclosure rates across the country, it is easy to forget that buying [city] real estate is also a means of saving and investing. The money you pay in rent to your landlord goes to your landlord; the money you put toward a mortgage goes toward building equity in your home.
2. Pride of Ownership: By buying a home, you will be able to paint the interior walls any color, renovate to your heart's content, put nails in the walls and know that it is truly your territory. As a homeowner, you have a level of control over your environment that renters lack.
3. Putting Down Roots: Purchasing real estate is a commitment to a community, akin to staking a flag in the ground. You're not just passing through, if you own your own home. Most mortgages are 15 to 30 years. Certainly, you can sell before that time is up, but with closing and moving costs and an uncertain market, the era of flipping houses for fun and profit is at a close. Buying your first home may involve considerations on other long-term decisions such as where you want to raise your children.

Cons

1. Additional Expenses: Even if the mortgage you secure on your home is less than your current rent, home ownership comes with a lot of extra bills. You may not have considered the cost of yearly real estate taxes, insurance, repairs, and maintenance. If your water heater dies as a renter, your landlord is required to replace it. As a homeowner, you're looking at the time and expense of getting it replaced yourself.
2. Less Flexibility: Rental leases often include provisions for leaving before the termination of the lease. So, if you've decided to accept a job offer in Paris, while you might lose some money in security deposits, you can sever your connection relatively easily. That's not the case with a mortgage. You are responsible for the payment on the mortgage whether you live in your home, rent it out while you're in Paris or leave it vacant. Buying [city] real estate is a serious, long-term commitment.
3. Less Time: With most apartments, someone else is raking the leaves, shoveling the snow, mowing the lawn, and replacing that broken water heater. As a homeowner, those duties would fall to you or someone you hire to tend to those issues.

Whether you’re ready to stop renting and buy a home or you need more information before taking the plunge, I can help. Give me a call today at 847-670-1060 or email me at dave@davebulava.com. Links: Commitment to a community http://www.ibtimes.com/articles/161307/20110611/homeownership-and-community-involvement.htm Flipping houses http://realestate.msn.com/article.aspx?cp-documentid=13107725 Home ownership comes with a lot of extra billshttp://www.kiplinger.com/features/archives/2007/05/homecost.html          

How to Buy Real Estate When You Can't Get a Loan

How to Buy Real Estate When You Can't Get a Loan Just because you are not in the position to get a home loan right now doesn't mean you're out of the housing market. Here are three ways to obtain real estate now without immediately getting a loan:     1. Option to Purchase An option to purchase is just that – you pay an option fee for the right to purchase real estate at a later date (usually 1 to 3 years) at a predetermined price. There is no rental agreement with this option. Option to Purchase is a good alternative if you are expecting to be able to qualify for a home loan at a future date. You are not obligated to exercise the option if you change your mind; however, the option fee is not usually refundable. One of the benefits of an option to purchase is that you may sell the option to someone else if you choose. This is a way to recoup your option money should you change your mind or if you are unable to purchase. 2. Lease with Option to Purchase This is also called a lease option. It’s generally for a term of 1 to 3 years and includes a rental agreement. As with the option to purchase, you pay an option fee for the right to purchase the real estate at a later date. In most cases, the option money is not refundable and is generally not applied to the purchase price. During the option period no one else can buy the home and you cannot assign the option to someone else. You must exercise your right to purchase before the end of the term or the option is lost. With a lease option, a portion of your monthly rent goes toward the purchase of the home. The rent is usually higher than a normal rental for this reason. You are not obligated to exercise the option if you change your mind. 3. Lease Purchase With a lease purchase, you ARE obligated to buy the home so make sure this is what you want to do before signing a Lease Purchase Agreement. You are generally going to pay market price or above for the home. You pay the seller an option fee for the right to later purchase the property. The option money may be substantial. The option fee may be used toward the down payment, but this must be negotiated prior to signing the agreement. During the term of the option, which is usually about 1 to 3 years, you agree to lease the property from the seller for a predetermined rental amount, at which time you apply for bank financing and pay the seller in full. Just like the lease option, a predetermined portion of the rent is commonly applied to the purchase price. If you fail to fulfill the Lease Purchase Agreement, you will lose all the money you have paid, plus the seller can take you to court to get the balance of the agreement. With all options, I highly recommend the use of a real estate agent as well as a real estate attorney. With a lease option or lease purchase, you want to do all the things you would do in a traditional sale. This includes all typical inspections and definitely a title search to make sure the home has no liens or encumbrances. For more information on how an option works or if it is right for you, give me a call at 847-670-1060 or email me at dave@davebulava.com. Links: Option to Purchase: http://www.nupplegal.com/optopur.html Lease Option: http://en.wikipedia.org/wiki/Lease-option Lease Purchase: http://homebuying.about.com/od/financingadvice/qt/091007_leaseopt.htm