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South Loop Scoop
October 2, 2010
Cook County tax payers are in luck…they will have extra time to pay their bill this year! Last year the tax bill was mailed on October 28th, but this year, according to city of Chicago Treasurer Maria Pappas, they will not be mailed until around November 22nd. This is great news for the many homeowners currently struggling to make ends meat. Finally a bill is coming late, even when the city of Chicago is in financial mess. That extra month could mean keeping a home or paying other bills until then, when so many are living check-to-check these days, many are probably relieved.
Is it late because this will help politicians at the polls on November 2nd? Probably so, but who cares when homeowners have another month to scramble to get their finances ready for payment.
September 30, 2010
As reported by Crain’s this week, Astoria Tower’s remaining units, located at 9th and State Street in the South Loop, are for sale. The alleged sale price is $45 million and the alleged buyer is Crescent Heights. As reported by Crain’s, their plan would be to rent out the remaining units and hold for sale at a later date, most likely in a few years. We have also heard that there are buyers in the mix trying to close on this acquisition as well…stay tuned….
September 15, 2010
Rumor has it that Trader Joe’s will be opening up a new store in the South Loop. The rumored location is on the corner of Wabash and Roosevelt in the former Sam’s Liquor’s Space. This would be a great addition to the neighborhood. What do you think?
This story has been neither confirmed nor denied by the property owner.
September 11, 2010
Half of all Americans who claimed the first-time homebuyer tax credit on their 2009 tax returns will have to repay the government.
According to a report from the Inspector General for Tax Administration, released to the public Thursday, about 950,000 of the nearly 1.8 million Americans who claimed the tax credit on their 2009 tax returns will have to return the money. The confusion comes because homebuyers were eligible for two different credits, depending on when their homes were purchased.
Those who bought properties during 2008 were to deduct, dollar for dollar, up to 10% of the home’s purchase price or $7,500, whichever was less. The catch: The money was a no-interest loan that had to be repaid within 15 years. Had they waited to buy until 2009, they could have gotten a much sweeter deal.
September 10, 2010
The one thing we can be sure of these days is change. Earlier this year, HUD increased the upfront mortgage insurance premium from 1.75 to 2.25%. This had minimal affect on a home buyer’s mortgage payment. However, HUD will again be changing their calculation next month. On August 10th Deputy Assistant Secretary, Vicki Bott, sent a letter stating that FHA MIP would increase. “FHA’s upfront mortgage insurance premium will be adjusted down to 100 basis points on all amortization terms and the annual mortgage insurance premium will increase to 85-90 basis points “on 30 year mortgages effecting October 4th, 2010.
Using a $250,000 home and a 3.5% minimum down payment as an example, the net-net affect of the upfront fee decrease, but monthly MIP increase, will cost an owner $54/mo beginning in October.
September 9, 2010
Interesting how many first -time buyers who received the tax credit first, will have to pay back the money! If they did not understand how the program worked, they may be out of luck! CNN reported that nearly half of all Americans who claimed the tax credit on their 2009 tax returns will need to pay it back! The inspector General for Tax Administration said that about 950,000 of the 1.8 million American’s who claimed it on tax return, will have to repay the government.
Basically, there were two different programs, buyers who purchased during 2008 were to deduct, dollar for dollar, up to 10% of the home’s purchase price or $7,500, whichever was less. But the typical government program downside was, the money was a no-interest loan that had to be repaid within 15 years. Buyer who decided to wait until 2009 were in a much better position, receiving up to $8000 without a repayment clause.
The additional issue, during a review by the Inspector General, found that the IRS could not easily distinguish between home purchases made in 2008 and 2009. That added to concerns that some claims could be erroneous or even fraudulent, and that buyers could possibly claim their purchase came later than it actually did.
Thursday’s release reported that 73,000 claims, more than 4% of the 1.8 million homebuyers who received the credit, had incorrect purchase dates recorded by the IRS. Some of the inaccuracies counted against the taxpayers and almost 60,000 were listed as purchasing in 2008 (meaning they had to repay the credit) or had no purchase dates at all, rather than their correct 2009 purchase dates, which would free them of the obligation to pay it back.
The inspector general reported that 1,326 single people listed as dead by the Social Security Administration claimed more than $10 million in credits. The IRS threw out 528 of those 1,326 claims, saving $4 million.
Bottomline, buyers will be running to call their accountants to make sure they on not on the hook for a repayment, down the road. If you are unsure, it would be best to do the same.
September 2, 2010
If you are ready for some fun over the holiday weekend, check out the booth assisted by Weichert Realtors Frankel & Giles Agents, this Saturday 9/4/10. Agents are happy to help at the Wine booth, in order to mingle with neighborhood residents. It is a great event to relax and enjoy the festivities during the Labor Day weekend. If you want some fun and entertainment , this is the event to attend! One of the last Bashes of the summer! Taste of Wabash will be held this weekend at 13th and Wabash in the South Loop. Stop by and say hello to the WRFG team and receive your free goodies!
This week, there were several issues with closings. The lenders have all informed me there is NO SUCH THING AS A QUICK CLOSING ANYMORE! And to add salt to the wound of having a slower market, they have now added additional obstacles for getting loans done. FHA now requires appraisers to attach a photo of the kitchen and bath to the appraisal, which mean all the ones completed prior to this change, will need updated appraisal prior to submitting file for a clear to close.
Some lenders now also require a “soft” credit report pulled and an employment verification ON THE DAY OF CLOSING! Another requires you to verify ANY deposits over $500 with documents. When will the restrictions end? Eventually they will want your blood type, leg, family history, past 20 years of employment history, dogs name, and favorite color prior to approving you for a mortgage.
Moral of the story, it will be in all of our best interest to offer words of advice to all clients in advance of the mortgage process. #1 Do NOT buy anything. #2 DO NOT open a new credit card #3 DO NOT spend any money in your account #4 DO NOT win the lottery (will fluctuate balance too greatly) and finally, #5 DO NOT BUY A DOG!
August 27, 2010
So the rumors about Lexington Park have come to fruition. Many real estate experts were convinced Starwood Capital would not move forward with the current buyers’ closings, and it now has been confirmed. Recent articles state buyers have now been notified, they will receive partial release of earnest money. Most buyers have said, they are not thrilled, but are at least relieved they can now put it behind them.
Buyers with email addresses on file have received emails notifying them of this news along with attachment outlining the details. In summary, 95% of their earnest money will be returned with interest, (less 5% processing fee). This applies only if they act within 30-days and keep the details confidential.
While this is not the best news to some, seeing they will not receive their dream home, and are being penalized for something out of their control. This is still good news for many, because quite a number of them paid premium dollars for a condominium, which has now lost a minimum of 20% in value, during this long wait. While some buyers have allegedly contemplated lawsuits, others are happy to receive a better return in the end. A few have said “losing 5% is better than 20%”, but it is unclear what percentage is feeling that sentiment.
This is truly a tragic end to a market that has brought so much heartache, to so many hardworking buyers, who just wanted to purchase their dream home.
If you were one of the unfortunate buyers who not yet been notified, it is best to contact the title company for information.
August 19, 2010
Chess Lofts, located in the south loop, began specials last month and many are cashing in on the huge savings! Over a dozen homes sold quickly when the developer, of these heavily upgraded loft units, were ALL given ONE PRICE for each unit type. Living on the 3rd or 7th floor, with or without a lake and city view, was up to the buyer at incredible pricing. If you are looking for a great deal, it would be wise to visit the sales center, before you miss out! You can call the sales center at 312.225.1300, for more information or to schedule your showing.
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South Loop Scoop
