http://www.trulia.com/profile/timsoper/The latest answers submitted by Tim Soper to questions asked on Trulia Voicesen-ushttp://www.trulia.com/voices/Foreclosure/when_negotiating_the_purchase_price_of_a_short_sal-40727Answer by Tim Soper: Louis, You're finding out the hard way that a short sale can be complicated. In reality, you are negotiating with both the Seller and Lender. The Seller owns the home and, although it may not be in their best interest, can chose to stop the sale to you. The Lender has to agree to a payoff for less than the amount of the mortgage owed (I won't get into 2nd & 3rd lienholders). Best Regards, Tim Soper RE/MAX Pinnacle Shorewood, ILWed, 11 Jun 2008 14:38:06 PDThttp://www.trulia.com/voices/Home_Buying/Does_anybody_know_the_price_of_S_Woodlawn_Ave_or_-40617Answer by Tim Soper: Stressed, Its listed for $795,000. If you want more information on the property (like the listing sheet) and you are not working with another Realtor, please drop me a line at tim@soperteam.com. Best Regards, Tim Soper RE/MAX Pinnacle Shorewood, ILTue, 10 Jun 2008 21:51:38 PDThttp://www.trulia.com/voices/Foreclosure/Ok_well_where_do_I_start_My_fiance_and_I_made_an-39771Answer by Tim Soper: Nicole, Wow! Your situation covers a slew of issues and it would be a disservice to answer them in a forum such as this. Your most pressing need is to find an attorney to represent your interests. If you want to bounce this off a real estate professional, and you are not currently working with a real estate professional, you can feel free to contact me via my website below. I wish you the best of luck. Regards, Tim Soper RE/MAX Pinnacle Shorewood, ILThu, 5 Jun 2008 15:07:26 PDThttp://www.trulia.com/voices/Foreclosure/what_website_is_their_for_foreclosures_that_is_tot-38890Answer by Tim Soper: Jenna, At RE/MAX we have an agreement with RealtyTrac, the premier source for foreclosure listings, to provide foreclosure listings on our agent sites. Please feel free to use the search feature at my site: http://www.TimSoper.com. Just click on "Start Advanced Search" then click on the "Property Search" tab then click on the "Foreclosures" tab. When you find a property you like you can click the "Agent Assistance" button for more detailed info. This is a great (FREE) way to get started in looking for foreclosed properties. If you are new to foreclosed properties, they are not typically "vanilla" deals. I would certainly recommend working with an agent who has experience with these transactions. If you are not working with an agent and need help finding someone in the Hegewisch area, let me know thru my site and I'll help to find an agent for you. Good Luck, Tim Soper RE/MAX Pinnacle Shorewood, ILWed, 4 Jun 2008 12:43:23 PDThttp://www.trulia.com/voices/Home_Buying/We_made_an_offer_on_a_bank_owned_home_weeks_ago_-39378Answer by Tim Soper: Sonia, I agree with Dino...with an REO you should be getting an answer in less than 3 weeks. Your Realtor should be communicating with the listing agent to find out why the delay. You may not speed up the process, but you should be able to get a reasonable approximation of when your offer will be decided on. Good Luck, Tim Soper RE/MAX Pinnacle Shorewood, ILTue, 3 Jun 2008 14:35:15 PDThttp://www.trulia.com/voices/Home_Buying/My_family_is_looking_for_a_house_not_townhome_that-37856Answer by Tim Soper: Gabrielle, Based on the schools that you are looking for, there are no single family homes (a house, not townhouse) that are listed for less than $317,000 in the MLS. There are a variety of townhomes, though, priced under $250,000. As to your "P.S.", Trulia is a good place to ask your question. The answer is that a Realtor, assuming you are not working with one already, would be happy to help you find a home that fits your criteria best. If you are not working with a Realtor and you would like to see if there are workable alternatives for your situation, please feel free to contact me through my website below or my Trulia profile. Good Luck, Tim Soper RE/MAX Pinnacle Shorewood, ILSun, 25 May 2008 20:20:26 PDThttp://www.trulia.com/voices/Home_Buying/Is_it_true_that_most_lenders_are_requiring_down_-37772Answer by Tim Soper: Chris, As mentioned, FHA is 3% down and there are programs (for the time being) like AmeriDream & Nehemiah where you can have the seller contribute 3% so you are effectively 100% financed. You may also want to check with local banks in the Chicago area to see what type of "community initative", portfolio loan programs they offer. I know that Park National Bank has a great program they call Community Gold that is 2% down. I know that other banks offer these, but as I'm happy with the Park program and their loan officer, I haven't had reason to go exploring further. Finally, they are great programs that are targeted at a segment of the population: USDA Rural Loans (good in the collar counties), military service, first responders, etc. Good Luck, Tim Soper RE/MAX Pinnacle Shorewood, ILSun, 25 May 2008 15:15:03 PDThttp://www.trulia.com/voices/Home_Buying/How_do_I_go_about_finding_a_buyer_s_agent_that_i-37463Answer by Tim Soper: T. Ross, The GI Loan in Illinois that Jeff recommended is a great program. Click on his links for more information. As for finding a "military Realtor", our office is in the process of building a military buyer/agent referral network. Our rollout is scheduled for July, but I invite you to check it out: http://www.HomesForTheHeroes.com Good Luck, Tim Soper RE/MAX Pinnacle Shorewood, ILFri, 23 May 2008 08:33:05 PDThttp://www.trulia.com/voices/Home_Buying/If_a_foreclosed_home_is_being_sold_as_is_would_it-37464Answer by Tim Soper: T. Ross, Most things are negotiable in a real estate deal. When I represent a client buying a home, I explain to them that price is not the only negotiable item; terms, seller credits, financing, personal property, and on and on. Each property should be evaluated individually and an agent should be well aware of what is most important to you in a purchase. Good Luck, Tim Soper RE/MAX Pinnacle Shorewood, ILFri, 23 May 2008 08:17:16 PDThttp://www.trulia.com/voices/Home_Buying/There_is_a_home_that_I_really_like_so_I_ve_been_r-37466Answer by Tim Soper: T. Ross, The advice you have gotten so far is right on: find a competent Realtor in your area and use them as a Buyer's Representative to pre-evaluate the property. There is no cost to use a Realtor as a Buyer's Representative. As for waiting, three things come to mind: 1) If you wait, someone else may end up purchasing the property. Do you want to risk losing the property for the CHANCE that there might be a price change? 2) Don't want to pay list price? Have your agent offer less than list. 3) Mortgage guidelines are changing (actually tightening) every week it seems. You may find it harder to get financing 3 to 6 months down the road. If you are not working with an agent and would like additional advice, please feel free to contact me. Good Luck, Tim Soper RE/MAX Pinnacle Shorewood, ILFri, 23 May 2008 08:08:57 PDThttp://www.trulia.com/voices/Home_Buying/Can_someone_please_review_MLS_on_Re_Max_com_and_t-37457Answer by Tim Soper: T. Ross, Its a Bank Owned property, Countrywide in this case. Bank owned or Bank REO properties are sold "as is" as the bank has not occupied the home and they will not provide a Real Property disclosure. This is standard procedure. If you have anymore questions, please feel free to contact me thru my profile. Regards. Tim Soper RE/MAX Pinnacle Shorewood, ILFri, 23 May 2008 05:43:10 PDThttp://www.trulia.com/voices/Home_Selling/How_do_I_get_listed_in_your_site_I_have_a_realto-36535Answer by Tim Soper: Have your agent submit your home...its FREE.Sat, 17 May 2008 15:56:45 PDThttp://www.trulia.com/voices/Home_Buying/_LTV_still_possible_in_Chicago_area_-36504Answer by Tim Soper: Robert, Shel-lee is right on. FHA loans are a great product and, with the current and prospective changes in conventional loan guidelines, will grow more attractive in the future. I think that there is some stigma that FHA is a "low income" loan program. That may have been the case previously, but it isn't anymore. You may also want to check with local banks in the Chicago area to see what type of "community initative", portfolio loan programs they offer. I know that Park National Bank has a great program they call Community Gold that is 2% down. I know that other banks offer these, but as I'm happy with the Park program and their loan officer, I haven't had reason to go exploring further. Finally, they are great programs that are targeted at a segment of the population: USDA Rural Loans (good in the collar counties), military service, first responders, etc. Contact me thru my profile if you want more info. Thanks, TimSat, 17 May 2008 09:35:11 PDThttp://www.trulia.com/voices/Agent2Agent/Agents_need_your_input_for_an_article_that_may_be-36280Answer by Tim Soper: OK, you appealed to my vanity…I’ll bite: Rising foreclosures are a product of poor lending decisions; how we are responding is a sign of the times. As long as there have been mortgages, there have been foreclosures. In times past, the unfortunate or unexpected would happen, and the unlucky homeowner would find themselves on the street. This occurrence, however, was an anomaly. According to research from the FDIC, foreclosure rates on conventional loans from 1951 to 1979 hovered in the lower end of a 0.04% to 0.78% range. Rates grew through the 1980’s and reached a plateau of around 1% in the 1990’s and into the 2000’s. Now with the bursting of the housing bubble in the last couple of years, we see rates spiking, with, according to Realty Trac, Q1 2008 numbers up 112% on a year-over-year basis. So why were foreclosure rates so low years ago? And maybe more importantly, how did we get where we are today? Simply stated, lenders used to apply stricter lending standards and required borrowers to have more equity in their homes. Logically, a homeowner with significant “skin in the game” is less likely to go bad on their loan. It would usually take a spark such as divorce or job loss to trigger a default. As lenders loosened their guidelines, as Loan-to-Value ratios (LTVs) rose, homeowners had less equity and less to lose which beget rising rates. Throw in the “cooling off” of the real estate market in the last couple of years, voila spiking rates! So rising foreclosure rates can be chalked up to poor lending decisions; but how do we explain a growing trend of homeowners “walking away” or abandoning their homes? Realty Trac found that in March 2008, default notices were up 54%, bank repos were up 129%, but that auction notices were up only 32% “indicating that more defaulting homeowners are simply walking away and deeding their properties back to the foreclosing lender”. No simply stating this trend; no unequivocally laying this at the feet of the mortgage industry. Walking away, in the eyes of this solitary RealtorŪ, is a symptom of a society that is “less attached”. Ironically, as we have grown more “connected” (via the Internet, blogging, social networking sites, etc.) we have become less “attached”. We live in neighborhoods where we do not know our neighbors names. We chat with virtual friends and our kids even have virtual pets. In this Information Age, we know more details of each other’s lives and less about one another. Contrast that with the past where I imagine the financially distressed homeowner of the 1950’s was not only attached to his home, he was a part of his neighborhood and his community. He was on a first name basis with the banker who held his mortgage. Losing his home meant more than losing a house; it damaged his reputation with his neighbors, impacted his standing in the community, and brought harm to his local banker. That struggling homeowner risked violating societal mores and that was a powerful deterrent that only the most extreme event could trigger. Only recently, are we like the frog who has suddenly felt the heat of the boiling water. Reform, in one shape or another, is on the way for the mortgage industry. We’ll not be returning to the 50’s, but eventually better lending decisions will stem the tide of this current foreclosure crisis. In the meantime, I think I’ll “walk towards” my neighbor and find out his name. Tim Soper Broker-Associate RE/MAX Pinnacle Shorewood, IL www.WillGrundyRealEstate.comSat, 17 May 2008 01:48:24 PDThttp://www.trulia.com/voices/Home_Selling/Advantages_of_using_a_realtor_in_my_case_-36423Answer by Tim Soper: I think you framed your question perfectly; asking about the advantages of using a RealtorŪ vs. whether you can do it FSBO. As RealtorsŪ, we often get testy when the concept of For Sale By Owner is raised. We take it as an article of faith that it should be obvious that you can't sell without a RealtorŪ. That someone questioning that is, by proxy, questioning us, our abilities, and our "career" reason for being. Congrats on a good question; a question every seller should ask. So it sounds like you have a good handle on the market in Lakeview, you have a flexible schedule, and you are willing to do the marketing to make your home standout. You appear to be someone who is going to have success selling FSBO. But most of the FSBOs I list are doing their best to sell their home. So why do they choose to use me and why do 70% of people who start out FSBO end up listing with a RealtorŪ? When I list a FSBO, one that has really tried to sell their home, what I tend to find out is that they decided that the effort of trying to sell their home by themselves wasn't worth the savings. They started out with the best intentions, but over the course of time they got tired/frustrated with the process. It’s been a couple of weeks (or months) and their house hasn't sold. They question whether they are doing things right; pricing, marketing, staging, etc. (It’s the same thing that happens every January when I resolve to get in shape) Invariably, I also notice that they started out with unrealistic expectations. If average market time is 180 days, they are frustrated when the home hasn't sold in 90 days. If market value is in a $20K range, it seems their always at the top of that range. So why do they do this? It’s not because their dumb; they tend to be bright people. They do it because they are "invested" in the sale of their home and that "investment" clouds their judgment. Some RealtorsŪ do this too: they’re so invested in getting the listing; they'll take it at a reduced commission or at an unrealistic list price. I think its human nature. But for sake of discussion, let’s say that you can be objective and unbiased about your home. That you (or you and your spouse) can acknowledge (if true): “there's 10 other homes like mine for sale in my neighborhood/building and mine is the 4th best; average market time is 200 days, but we think it could take 300 to sell; we know that it’s worth $400K, but we'll take the 5% off the top that FSBO buyers do and sell it for $380K". You can do this so you are going to be part of the 30% that persevere. So what are the logical reasons (outside of marketing/exposure) for using a RealtorŪ? There’s one that sticks out for me; it’s so you have a “fail-safe” option when you do get a contract. Prior to contract, usually the worst thing that can happen is that you have wasted your time. Not so when you are presented with a contract. Assuming that you have negotiated the best price for your home (a concern in itself), once you have signed a contract you now have contractual obligations to that buyer. With those obligations comes potential liability when a contract falls out. Your RealtorŪ, as mentioned in an earlier post, carries Errors & Omissions (E&O) Insurance. E&O, as defined by Insurance Journal, is “the insurance that covers your company, or you individually, in the event that a client holds you responsible for a service you provided, or failed to provide, that did not have the expected or promised results”. When you sell FSBO, you go without that protection. And while the unexpected rarely happens, when it does you are hit with the double whammy: you don’t have the training/knowledge to fix the problem and you are unprotected when that problem leads to litigation. I break it down for my clients into 2 analogies. To me the marketing or selling portion of getting a home sold is like the choice between cooking a gourmet meal or dining out at a fine restaurant; both may end up tasting great, but I’d bet on the chef. The closing portion is like making the choice to have life insurance when you are 30 and have young kids. Odds are you aren’t going to need it, but what happens if you do and your family does? This is the largest financial transaction you may ever make, so how much risk are you prepared to take? I apologize for the lengthy post, but selling FSBO can have significant ramifications and, as I mentioned earlier, it’s a topic that RealtorsŪ usually don’t like to discuss. I hope that I have given you something to consider and I wish you good luck with your decision.Fri, 16 May 2008 21:12:11 PDThttp://www.trulia.com/voices/Home_Selling/Can_buyer_back_out_of_a_signed_contract_because_th-35988Answer by Tim Soper: Tracy, You need to discuss this with your real estate attorney who is handling the sale of your mobile home. If you do not have one, the Illinois State Bar should be able to point you in the right direction. Sorry to be so vague, but as a Realtor I can't offer legal advice. Best Luck, TimWed, 14 May 2008 08:55:05 PDThttp://www.trulia.com/voices/Market_Conditions/Aren_t_agents_supposed_to_price_according_to_exist-35866Answer by Tim Soper: You are correct Holly: my crystal ball is in the shop! Seriously, though, I think it comes down to your need/motivation to sell. It sounds like you don't have to be a seller, so I wouldn't be in this market. One point to consider, however, is the "value" of your home. Just as you believe your home (and others in your neighborhood) are being under valued, the values from from 2004 to 2006 were often overvalued. I have clients who bought at the peak who will probably be waiting 2 to 4 years to get back to peak values. Good Luck & Best Regards, TimWed, 14 May 2008 07:59:10 PDThttp://www.trulia.com/voices/Home_Selling/When_selling_my_home_what_questions_do_I_ask_the_-35938Answer by Tim Soper: Angelia, Shannon really touched on some critical concepts in her answer to you. Hopefully, I can add to her great post. EXPERIENCE: Being a veteran in the RE business with a bunch of designations isn't the only type of experience. In a market such as the current one in Northern Illinois, experience with (AND THE WISDOM TO SOLVE) problems when they crop up (and they do) is more important than time in the industry. I would ask, " Do you see any issues with my homesale, and if so, how are you planning to handle them?" MARKETING PLAN: Ask for a written marketing plan TAILORED FOR YOUR HOME. I won't go into the types of marketing concepts, but the agent should be able to provide you with a clear and concise plan for marketing YOUR home; not just what their brokerage firm does in general.. Also a marketing budget and suggestions for getting the highest value for your home. SALES PLAN: This veers into the world of dual agency (where the agent represents you and the buyer) so if you are not comfortable with that you can ignore this. Often, agents get the listing and hope that another agent sells the home for them. I would want to know how much buyer prospecting that agent is doing. Is their marketing aimed at other agents or buyers? PRICING: Shannon hit it on the nose; you want an agent that can give you a range for the value of your home and a rationale for that value. Ultimately, you are going to chose the marketing price, but if they are meek enough to let you just list at any price, then how strong are they going to be when it comes to negotiating on your behalf. COMFORT: You don't have to become best friends with your agent , but with average market times of 6 months (and longer), you need to be able to work well together as a team. Angelia...it lists you as in 60416 or Coal City/Diamond. You should be pleased to know that market activity is picking up there. For the last 30 days, the inventory of homes has fell to less than a 5 month supply. If you have additional questions about the process or your market (I live in Morris and work out of Shorewood) please do not hesitate to ask. My personal website is listed below. Good Luck, TimWed, 14 May 2008 07:45:55 PDThttp://www.trulia.com/voices/Agent2Agent/How_do_HUD_properties_work_How_long_is_the_proces-35546Answer by Tim Soper: Clarissa, Most agents don't like HUD sales because of the extensive paperwork and procedure involved. Once you've done a few, though, they are actually very easy. Sit down with an agent who has done one (or run thru all the docs on your own) to get a handle on all there is to do and you'll be fine. As an aside, anytime I hear a couple of agents saying something is too hard, too long, too much, etc. that is something I look to do immediately. Good Luck, TimMon, 12 May 2008 13:31:59 PDThttp://www.trulia.com/voices/Foreclosure/where_do_i_go_online_to_find_tax_foreclosure_sales-31737Answer by Tim Soper: Vicktor, Realty Trac is a good first step. At RE/MAX, we have integrated Realty Trac into our Property Search feature on agent websites. Please feel free to visit mine below and use the feature. For my clients, I subscribe to a daily service that provides current, to-that-date info. I would be happy to discuss that with you if you call or drop me an email. Regards, TimFri, 9 May 2008 23:32:58 PDThttp://www.trulia.com/voices/Foreclosure/Can_a_lender_speed_up_a_sheriff_s_sale_after_a_jud-35091Answer by Tim Soper: Ty, No, in most cases, the lender cannot speed up the process. The only time the process can get accelerated is if the property has been abandoned. Otherwise, the homeowner has a redemption period up till the Sheriff's Sale. You may want to attempt to acquire the property thru the homeowner, most likely via a Short Sale (where the lender accepts less than what is owed on the loan). You definitely want to proceed with caution here as the homeowner may be less than agreeable to the concept, even though a Short Sale is considerably better for their credit than a foreclosure. I would suggest that you run this by your real estate agent or, if you are not using one, feel free to contact me and I would be happy to discuss the best way to go about acquiring this property (visit my site below and give me a call or shoot me an email). Good luck, TimFri, 9 May 2008 23:20:15 PDThttp://www.trulia.com/voices/Home_Buying/I_am_a_first_time_home_buyer_I_am_unsure_if_I_sh-35135Answer by Tim Soper: Beth, Looks like you got some good advice already, but I'll throw in my 2 cents. I "think" that were going to continue to be in a buyers market thru the end of the year and that rates will probably continue to stay low thru the election. That being said, I "know" that it is a great buying opportunity now and that rates are within a point of historical lows. I think that you have the luxury of starting to look now for the right property, knowing that you should have a decent sized inventory to consider and that time is on your side. If you were my client, I'd make sure that you have found the right loan package for your situation before going out to look. Luckily, as a 1st Time Buyer, there are a lot of good programs out there for you. I'd then find an agent who is aware that you want to pre-evaluate alot of properties to find the diamond in the rough. Good luck to you.Fri, 9 May 2008 16:19:31 PDThttp://www.trulia.com/voices/Home_Buying/I_am_looking_for_an_agent_that_is_seasoned_in_ban-35053Answer by Tim Soper: Ericka, foreclosures are not supposed to be used in appraisals. As a rule, only "arm-length" transactions, those between non-related sellers and buyers who are not distressed, should be used for comps. Of course, the appraiser needs to be diligent that they also recognize and DO NOT include "short sale" transactions. All that being said, if there are enough foreclosures/short sales in a sub-division, then they do end up impacting market value. As for finding an agent, Bank REO transactions are fairly straightforward. Your agent should help you formulate a competitive offer and be diligent about getting your offer considered (often there are multiple offers), in addition to their normal fiduciary duties. With a REO property, they are sold "as is", so it is very important that you have a qualified home inspector comb over the property. I would also recommend having an attorney who practices Real Estate Law as their primary focus and who has experience with REO transactions. If you are considering purchasing a "short sale" property (property bought for less than what is owed the lender; they can be better investments than REOs), I think that your choice of agents is even more important. Coordinating a "short sale" can be a very cumbersome process, especially when you are working with a larger bank and an inexperienced or disinterested listing agent. I think it helps if you have a buyers agent that has handled a short sale previously. If you want more help, please feel free to visit my Bank REO page on my website listed below.Fri, 9 May 2008 15:46:02 PDThttp://www.trulia.com/voices/Home_Buying/Do_we_have_a_right_to_fire_our_realtor_and_go_wi-30281Answer by Tim Soper: Sally, it sounds like you are a buyer, so it is possible that you signed a Buying Agency Agreement, but I would make a request for copies of ALL the documents you signed Without commenting on the specifics of your situation, you need to be concerned that you may have signed an exclusive buying agreement that could state that you owe your first real estate agent a commission even if you find a purchase a property on your own or with another agent. Even without an exclusive buying agreement, if your first agent was the first to show you a property and you purchased it with a 2nd agent, you may owe the 1st agent a commission because they were the "procuring cause" of that transaction. Get those docs and find out where you stand.Fri, 9 May 2008 13:35:30 PDT