Gene's Bit of Blogging
Short Sales/Foreclosures
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Gene Mundt, Sr. Vice President - Chicago Bancorp: Posted on Thursday, September 29, 2011 2:23 PM
Is it time for you to buy a home?
That's a pretty personal question for first-time homebuyers.
Just last week, I met with a new buyer for her loan application. She reminded me that she'd been in the market for a home for 2 (yes, that's two!) years!
Upon hearing this, I asked her ... "Why now? What changed for you? What made you think your ducks were all in a row?"
Her reply was, "I'm in a good place at my job now. I have my down payment saved-up. You and I worked on my credit and it's strong. And the timing is good ... I just didn't want to miss out on the advantages of buying my home in this market."
She went on to reveal that when she started her journey to buying a home two years ago, we had projected a good monthly payment for her at almost $200 HIGHER than the monthly payment she's going to have with her home purchase now. $200.00!! Quite a savings ...
Well, I went away from that evening's application feeling pretty good. It was obvious to me ... this client had her act together financially. She had paid attention to my advice and all the news regarding housing, mortgages, and ownership. And she had come to the right conclusion ...
Home buying and financing come with risks and responsibilities ...
She had then set-out to repair her credit and prepare herself financially for purchasing a home intelligently and systematically. No immediate gratification. The longer, more financially sound and beneficial route was the wise route she chose.
 At the end of that route, all her ducks were in a row.
Right now, we're seeing that low interest rates are not luring buyers in as they would have in the past. Low housing prices aren't doing it. And it's just my guess that the glut of bank-owned homes, previously foreclosed on properties finding their way onto the market, won't be appealing enough to lure them in either. Not on their own.
So, what changes have been made that might make an impact on the future market?
Fannie Mae's recently implemented condition ratings for appraisals should elevate some of the issues regarding bank-owned properties. Under these new changes, banks and asset management companies looking to sell Real Estate Owned (REO's) have to bring all properties for sale up to a C3 status. (C3 =The improvements are well maintained and feature limited physical
depreciation due to normal wear and tear. Some components, but not every
major building component, may be updated or recently rehabilitated. The
structure has been well maintained.)
These changes should provide some much-needed help to keep housing inventory at an acceptable level to buyers, lenders, appraisers, underwriters, and realtors alike. It should also keep property values up, eliminate the guess work by appraisers as to if ... and when ... or how much ... the condition adjustments for properties should be.
Perhaps if home buyers then like what they're seeing for sale in the future REO market ... and individual sellers aren't hurt by the lower-end sales of "disposed of" properties ... the market will get moving again. Sales and Closings will not be torpedoed because of appraisal value issues.
But I think, even if all these recent and upcoming changes make a positive impact on the market, theyshould NOT be the sole determination or bottom line for buyers deciding whether to enter the housing market ot not.
Nope! I say that final decision should be made when a home buyer can personally answer my question asked above in the exact same manner as my client did ...
"All my ducks are in a row ...*employment, *credit, *down payment, *interest rates, *monthly payment, *right house ... and I'm willing to be a responsible homeowner."
Absolutely the best answer for everyone ...
* Need some assistance and guidance in getting your ducks in a row? Worked hard and accomplished that already? Looking for advice or informational seminars? Whether you're looking for some credit guidance, just want to polish your credit a bit, or are ready to buy ... with over 35 years of experience, I can help!
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Credit, Buying a Home, Financing, Importance of Credit, Mortgages, Real Estate Advice, Credit and Financial Counseling, Appraisals, Short Sales/Foreclosures, Asking credit and mortgage questions, Seeking Advice, Credit Counseling, Home Buyers, home buying
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Gene Mundt, Professional Mortgage Banker - Chicago Bancorp: Posted on Sunday, April 03, 2011 3:30 PM
Call it the "ex-Chamber of Commerce President syndrome", but I like to get to know, comment, and promote the real estate professionals that are right here in my own backyard in Chicagoland and Illinois. The lessons honed during my three stints as Mokena (IL) Chamber of Commerce President live on ... And just as current Chambers and their presidents remind their residents to conduct business locally and keep tax dollars local ... it's my business policy to do much the same. Now don't get me wrong. I've got great contacts all over the States and Canada. And when referral opportunities pop-up in differing regions, I know just who to contact because of those relationships.  But the greatest percentage of my mortgage business is largely local to the Chicagoland region and Illinois. The real estate professionals that conduct business in this area are the ones that I have the most in common with, are knowledgeable about local laws and rulings, and are going to know and understand the needs of the residents (and referral partners) in my area best. I am better educated and equipped to refer their services, when clients are in need ... and I love promoting their services as much as possible. So ... if you haven't had the opportunity to find and know the following Chicagoland and Illinois real estate professionals and their services ... check them out! They have alot to offer! Jim Karges, Joliet/Will County, Karges Real Estate. Jim Karges has been one of the leading Realtors in the entire Chicagoland area for the past 32 years. His "Personalized Service" philosophy has always been his hallmark. Jim feels that it has required him to continually improve his skills and ways of doing business. In addition, Jim says he has found that the latest technologies available are enabling hime to do everything he's always done, only much more quickly and efficiently. I've always found working with Jim and his clients an extreme pleasure. Jim Karges' clients are always well-prepared and educated about the process they are entering and taking part in. That makes my job and ultimate success much more easily accomplished. If you're considering a move into or within the Will County area or Joliet/Shorewood proper ... contact Jim Karges of Karges Real Estate. I strongly believe that you will be happy you did! Margaret Goss, Winnetka and North Shore, Baird & Warner. Margaret has a host of letters/titles after her name. She's a CRS (Certified Residential Specialist), ABR (Accredited Buyer Representative), is a GRI (Graduate of Realtor Inst.), a Relocation Specialist, and more ... having mastered and accrued these accomplishments over a long career span. I've had the opportunity to sit, talk, and get to know Margaret better over some coffees. She's a delight. An extremely classy and knowledgeable real estate representative of the area she serves and our industry. Karen Winters, Prudential Rubloff Properties, Chicago. Karen's blog first caught my eye when she did a post on my beloved Chicago Blackhawks right after their historic Stanley Cup run. I couldn't have overlooked that post if I tried. Well, I was soon hooked on Karen's posts. I recently had the chance to meet her face-to-face. Soft-spoken, she's a fierce community activist at heart. She loves Chicago and its people. It shows in everything she says, does, and writes. What a great advocate to have on your side should you be a potential home buyer or seller in Chicago! Make sure you check this native Chicagoan out soon ...  Joe Kenny, Coldwell Banker Residential Brokerage, Hinsdale. Joe's tag line is "Better Than Your Average Joe" ... and that's definitely true. Joe works at the speed of sound. I wish I had this guy's energy! After having the pleasure of meeting him, I can tell you for a fact ... he CAN and WILL get the job done for his clients. He has an arsenal of professionals in real estate that he has developed relationships with. What a benefit to him ... and his real estate customers! Looking for someone that will make the Energizer Bunny look like he's standing still? Joe Kenny's your man. Reach out and get to know him ... Judy Greenberg, Coldwell Banker, Buffalo Grove, Long Grove, Kildeer, Lincolnshire, Vernon Hills. Named Coldwell Banker's Rookie of the Year for the entire Northwest Chicago Region her first year in business, Judy is also one computer and marketing savvy lady. Do a search for the northern Chicagoland area, and you'll find her name popping up time and time again. Speaking and working with Judy Greenberg is always fun, as she has one great sense of humor ... a definite advantage in today's current market. Find Judy soon. Get to know ... and then work with this extremely personable real estate professional ... Linda Kemp, Keller Williams Infinity, Naperville. Linda is definitely a real estate "veteran", having started her career in real estate back in 1979. Linda has branched out into a few extra paths over years, but they have only served to deepen and broaden the talents and abilities of this consumate real estate professional. Real estate is a natural fit for Linda, as she uses it as an outlet and extension for her "people personality" and beliefs. You won't find a more active community member. Marketing was her tandem profession to real estate for awhile and it shows. Linda's posts are not only well-written, but beautifully effective promotions of her many services and talents. My Chicago Bancorp western Chicagoland office is in Naperville. I'm glad to call it my business home and to share the city with a professional such as Linda Kemp. It would be hard to believe that you have not found Corinne Guest, Royal Advocate Realty - Barrington Village while spending time here on ActiveRain or looking for a real estate professional in the Barrington, IL area. If you have researched examples of well-written, effective ActiveRain real estate posts, you've probably run-across Corinne. Although she writes in her posts that SHE is the pupil of blogging, I'd have to disagree. I've learned so much through reading her posts that I think that she is the teacher, not the other way around. After meeting Corinne in person, I know why her posts are so effective and her thoughts so organized. Corinne writes who and what she IS! And that's a real estate professional you'd want to work with, whether client or professional. Search Corinne Guest out ... The above are just a few of the many wonderful real estate professionals you will find in the Chicagoland/Illinois region. In the future weeks I will write and introduce you to more. I hope you take the time to search each of them out and engage them. Should you have need for real estate representation, or a referral in their areas, I can say without a doubt that you would be happy utilizing their services. ActiveRain has the best real estate professionals within its midst. These professionals are proof of that ... * Should you be seeking mortgage guidance and information ... and an experienced and knowledgeable professional mortgage lender in Chicagoland to work with, please do not hesitate to contact me. Put my 35 years of mortgage lending experience to work on your behalf today. I look forward to hearing from you soon! |
Buying a Home, Real Estate, Real Estate Advice, Chicagoland, DuPage County, Joliet/Shorewood, Localism Posts, Will County, Condos and Townhomes, Agents and Brokers, Short Sales/Foreclosures, Selling Your Home, First-Time HomeBuyers, Buying or Renting
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Gene Mundt, Professional Mortgage Banker - Chicago Bancorp : Posted on Tuesday, January 11, 2011 12:23 PM
As a Lender at Chicago Bancorp, I can tell you ... nothing is better than working with a homebuyer that has obviously done their homework and prepared and educated themself. The connection and relationship just works well on both sides right from the get-go and leads to a smooth and successful closing. It's what every lender wishes and strives for.  That's why I'm so excited about the release of Fannie Mae's new WaysHome video that can be found on their website, http://www.knowyouroptions.com. This new video educates, assists, and motivates those hoping to purchase a home, (and those that are already homeowners), while having fun doing it. Through the playing of "games", buyers work through many different financial scenarios ... learning along the way. The WaysHome video lets the homeowners adopt a persona. That character then is placed in differing challenges or financial hardships in which they are offered choices/paths of options from which to choose. Through these simulations of experiences, the homeowner then educates themselves and learns the consequences of their decisions and actions ... both positive or negative. They begin to understand that the financial choices they make do affect their ability to pay their mortgage, pay their bills, retain their home, avoid foreclosure, or secure their financial future. For those entering the home buying market (particularly first-time homebuyers), participating in this game can help prepare the way for ownership of property and a healthy financial future.  For those that are already homeowners (especially those presently experiencing hardships), this Fannie Mae WaysHome video can provide a means of support and guidance. Many homeowners suffering through hardtimes in fact, have little or no communication or contact with the mortgage company holding their mortgage. Fannie Mae sees this WaysHome video as a "gap filler" ... a bridge that will provide and educate seriously delinquent, or "in foreclosure" homeowners regarding the options they have at their disposal. Options that might help them possibly avoid foreclosure or serious financial outcomes. The lingering message from this video should be that homeowners need to educate themselves prior to buying a home ... but should circumstances befall them after they have taken that step ... they need to seek the guidance and assistance they need before it is too late to have any real options left to them. My Call to Action is this ... Please take the opportunityto view this new Fannie Mae WaysHome video and contact me immediately,should you have questions or need assistance. Additional information regarding mortgages and my services can be found at: www.genemundt.com. |
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Gene Mundt, Professional Mortgage Banker - Chicago Bancorp: Posted on Wednesday, November 10, 2010 7:13 PM
I've been working on a file for a customer buying a condominium that has proven to be particularly challenging on many levels. I won't bore you with details, but suffice it to say, everything but the kitchen sink has somehow found its' way thrown into the approval process. Aaaahhh yes ... the wonders and thrills of modern-day real estate ... Even by today's standards ... this purchase has been what I'd politely call a "doozey". It could definitely serve as a textbook for many finer points of lending and buying a home. But even with that being the case ... there is one particular lesson from this transaction that screams out "SHARE ME"! But first, let me ask you these simple questions ... If you needed brain surgery ... would you hire a dentist to perform it? If you needed someone to fly a jet ...would you hire a Nascar driver? If you needed shoes for your feet ... would you shop in a coat department? It's the same with real estate transactions. You need to match your needs ... protect your legal interests ... by searching for and hiring the correctlegal professional. That means a knowledgeable and experienced REAL ESTATE ATTORNEY! Not a tax attorney. Not a divorce attorney. Not a corporate attorney. Work with an attorney that specializes in real estate transactions. Especially in the current real estate climate, your best interests will be benefitted and best served by retaining an attorney with up-to-date knowledge and expertise facing today'sreal estate challenges. In the file I speak of above, the buyer has not done this. They have retained an attorney, yes ... but real estate law is definitely not their daily focus or their forte'. This fact has contributed to some of the problems and issues that have cropped up within the transaction, the number of communications it has taken to address those issues, and the length of time it has taken to process and underwrite this loan. Simply stated ... the realities and machinations of the current real estate market escapes them and remain unknown. I have written about it before. I will continue to address and write about it in the future, so as not to continue to see this problem arise ... NOW IS NOT THE TIME TO WORK WITH INEXPERIENCED PEOPLE! WORK WITH TRUE PROFESSIONALS ... PROFESSIONALS THAT SPECIALIZE IN THE NEEDS YOU HAVE! That means ... an experienced Short-Sale Agent, if considering a short-sale from either end of the deal. That means ... an experienced Realtor or agent that specializes in the type of any property or transaction that you seek. That means ... an experiencedmortgage professional. One with a track record of successful transactions and closings addressing the mortgage issues and offering the programs that will benefit your financial scenario the most. That means ... retaining an actual experienced,knowledgeable Real Estate Attorney. To not do so, can cost you in too many ways ... * If in need of an experienced and knowledgeablemortgage professional, please contact me. I have over 35 years of successful mortgage industry experience with which to serve you and your needs. Contact me at: http://www.genemundt.com/Contact-Me.html. I will be happy to answer any questions you have and assist you with your needs. Thank you ... |
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Gene Mundt, Professional Mortgage Banker - Chicago Bancorp: Posted on Monday, October 11, 2010 8:35 PM
"Let the Sellers Beware" ... and Be AWARE! Playing Defense & Offense While Selling a Home ... Huh? Beware? Thought that was the Buyer!  Not these days! Agents, buyers, and sellers must know how to play DEFENSE and OFFENSE throughout a property transaction. This "one-of-a-kind market" delivers much more for each of them to consider than ever before. Prior to the present challenging market, sellers asked their agents, "What will I net in proceeds at the closing of my sale"? Now, more often the question is, "If I sell my home for less than I presently owe on my mortgage, what happens? How does that work for me? What does it do to my credit and my financial future?" During the last week, further complications have occurred within the mortgage industry. These complications surround the ability or inability to close on foreclosed properties. This muddies the waters for sellers, their agents, and potential buyers even further. You can't overlook how it effects we mortgage originators as well. No one at present, is happy. Many agents are now finding that they have performed their services, listed a property, maintained a vacant home, its' land, secured a buyer, assisted with securing the financing, ordered the inspections, and much more ... only to be told that as of now, the loan cannot close. A seller's attorney may possibly say that the lender has "halted all deals on foreclosures until further directions or notice". No one knows how this will play-out, as of right now. I personally am trying to stay calm ... and positiveas possible at this point, with the hopes that this latest twist in the story will be given the utmost and urgent attention needed ... and what we ludicrously have called "normalcy" within our industry, will return fairly quickly. Time is definitely of the essence, but it's hard to be definitive regarding a time element with this. Our clients deserve the truth and our understanding of the situation, as it presents itself in the future. For agents working with sellers experiencing the now common problem of being "under water", this latest mortgage revelation can post quite a problem as to proceeding with a transaction of this kind. These sales are definitely not for the timid. An agent better be a "Vince Lombardi", a coach of sorts for their sellers. A coach that retains tight rein, handles their "team" with firmness, presents great strategy, and displays a willingness to tell their team what they might not want to hear ... but must. In every sense of the word, this agent must prepare the sellers ("team") to play stellar offense and defense in order to survive and win in their game of home sales. But what if the seller (team) disagrees with the philosophy laid out by the agent (coach)? Just as a coach in major league football,the agent mustbe in charge as the expert. Just as a coach during any game, the agent does the seller no favors long term if they allow the homeowner to dictate an unreasonable sales price for their home. No one wins if that ends up happening, and in fact it does everyone involved a grave disservice. If need be, a coach must be willing to forego a full touchdown and glory and go for the short field goal ... if that decision positively wins the game. A short sale is much the same thing. From a Credit Bureau and lender's viewpoint, it is definitely a more positive outcome for a seller than foreclosure. In the future, a seller that sold "short", and received the bank's approval to do so, fairs much better than a seller that walked away from their mortgage obligations. They can return as buyers much more quickly. Ultimately, everyone on the team must have the same "goal" ... coach and player ... agent and seller. Success is won much more easily if everyone is of one mindset and works all in one direction and together, playing offense and defense within their transaction. Educated, well-informed, "well-coached" sellers accomplish this best. If you are a seller and are working with an agent fitting this definition, you are blessed. Listen carefully. Discuss thoroughly. Move ahead with confidence in their wisdom and expertise. "Let the Sellers Beware ... and Be Aware"! * For Buyers and Sellers in the Naperville/DuPage County, Joliet, Plainfield, Shorewood, Will County, Chicagoland areas seeking an experienced, professional real estate agent or broker, or other real estate professional ... please contact me for referrals. I will be happy to supply you with the information you need. For those seeking mortgage, credit, or financial information and guidance, please contact me also. Information regarding my services, my background, and more can be found at my website: http://www.genemundt.com/. |
Credit, Credit Repair, Financing, Importance of Credit, Real Estate, Real Estate Advice, Working with a Mortgage Professional, Credit and Financial Counseling, Chicagoland, Agents and Brokers, Short Sales/Foreclosures
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