Violation Nation - What We Are Hearing About RESPA Crime Today

"Have you heard of the term, 'organized crime?" one reader asked, in commenting on the state of the industry today. "They are bad news bears and are eliminating legitimate unbiased businesses," another reader said, remarking on the proliferation of affiliated business arrangements. It's time once again to take the pulse of the industry for our ongoing "What we're hearing" report. In a recent poll on RESPAnews, we asked, "How's the market where you are in terms of the number of kickbacks and RESPA violations you're seeing?"

Survey says...

"Have you heard of the term, 'organized crime?'" one reader asked, in commenting on the state of the industry today.

"They are bad news bears and are eliminating legitimate unbiased businesses," another reader said, remarking on the proliferation of affiliated business arrangements.

It's time once again to take the pulse of the industry for our ongoing "What we're hearing" report.

In a recent poll on RESPAnews.com, we asked, "How's the market where you are in terms of the number of kickbacks and RESPA violations you're seeing?"

Survey says...

Nearly 100 readers responded, with a full 60 percent saying, "They're increasing. Corruption is rampant here."

Just 12 percent said, "They're decreasing. People are paying attention to HUD's enforcement warnings," while 28 percent said, "They're staying the same. Some people still need extra incentives to do business and some don't."

One respondent said, "I am sick and tired of the regulators doing nothing about the blatant violations. I have been reporting violations to the DOC for years. They do absolutely nothing, and this is hurting my business."

Another said, "It's been around for awhile, but it seems to be getting worse."

Yet another stated, "Brokers continue to pay Realtors under the table or offer to pay them for each referral. Out-of-sight, out-of-mind theory: It's just you and I, and no one else knows. Meanwhile, legitimate brokers are being shunned. The bigger problem lies with the lead generators falsely advertising that the borrower wins when they apply and receive calls from four lenders. The problem is that those lenders have paid and thereby are not obligated to be competitive. Borrowers think they are applying to most online companies who are nothing more than lead generators who are selling their information over and over again."

And another added, "Let's all play by the same rules and make it a level playing field for the clients and the brokers to do business on a fair and equitable basis with straightforward truth and honesty."

State of the nation

Here's what we're hearing anecdotally from readers across the nation and across industry lines.

Disclaimer: We cannot confirm that any of these alleged practices are occurring, nor can we claim for certain that they violate RESPA. All reports were received from members of the industry in each respective state.

Arizona

"I encounter the bait-and-switch, kickbacks, etc. constantly in Yuma and, most importantly, in the Phoenix area with Phoenix lenders (primarily brokers). I chalk this unfortunate situation up to nothing more than greed."

California

"I have been a sales rep for the last 10 years in two different counties in California. The counties I work in are not as competitive as the larger counties in Southern California. I have seen many different title companies taking fines from the Dept. of Insurance and I have never seen a Realtor who is usually asking for the perks get in any type of trouble whatsoever. Why are the violations so one-sided? If the perks were never asked for, then it would never be a problem."

"What about all of the illegal kickbacks that are being paid to the brokers and agents for the use of the affiliated escrow and title companies? This problem is rampant, it must be stopped immediately. Consumers are being ripped off by having to pay higher prices to the affiliated companies so they can pay the illegal kickbacks to the brokers and agents. This is well known throughout the industry, but the regulators don't do anything about it. I am sick and tired of having to compete against this illegal activity."

Illinois

"Underwriter/lawyer/agent subterfuge only exists in Northern Illinois. Tell HUD to clean it up. The Illinois DFI certainly doesn't want to ruffle any feathers."

Indiana

"Brokerages are pushing their independent subcontractors to use their title companies, mortgage loan company and allow the sales agents to pick the one or two approved appraisers. The consumer doesn't have a chance in Northwest Indiana."

Kentucky

"I was told secondhand that HUD was in town investigating rumors of kickbacks from a mortgage company to Realtors in Paducah. I don't wish ill to them, I just would like the playing field level so we little people can play, too! Supposedly, for every loan closed with them, they would give them $150 in 'advertising' money. I'm not one to stick my nose in other people's business, but it's at the point where it's affecting my business also."

Ohio

"One large underwriter closed a large AfBA with the second-largest real estate company in Columbus, Ohio, and the Realtors just move down the road to the next company that will create a sham business to put money back in the prohibited entity's hands. Title insurance, although a commodity, is a service industry and we need to get back to that. Realtors and mortgage lenders make the largest gross revenue per real estate transaction. I would not be disappointed at all to see AfBAs or joint ventures go away. They are bad for the consumer."

Oklahoma

"Oklahoma is corrupted all the way to the state capital and no-one seems to be interested in bringing it to a halt. At least a dozen questionable LLC's exist in Tulsa alone between Realtors, builders, title insurance companies, closing companies and lenders. The state insurance commissioner and the state attorney general have been notified for years but always turn a blind eye once the Realtors stop financing their re-election campaigns. Oklahomans are being swindled out of millions of dollars every year, but we can't get any help. HUD really needs to crack down on the big insurance companies that are allowing these practices to continue."

"Sham AfBAs are going on in every state. In Oklahoma, I am constantly in competition with my own underwriters. The nationwide title insurance companies are taking over all the business in every state and we feel helpless to do anything about it."

"I've been screaming about this for three years and noone listens. The agents are conflicted over whether to get the best deal for the customer or put more money in their own pockets. There are too many of these illegal AfBAs across the country, but how can they be stopped? The big Realtors and builders have found an unregulated industry and are ignoring every aspect of RESPA, and it is all being blessed by the underwriters and our spineless insurance commissioner. I am fed up with the level of corruption. The public has no concept of what is happening and the bad guys and their attorneys are capitalizing on that ignorance to win the war and continue to take hundreds of thousands of dollars every year in illegal kickbacks."

Pennsylvania

"My business has been greatly damaged by sham AfBAs that don't do ANY of the title work, let alone perform 'core title services.' Unfortunately, I am in a small town and turning in the offending parties is tricky."

Massachusetts

"Kickbacks by lawyers to lenders is common in Massachusetts -- typically $100 per closing. Is this not sharing legal fees? Kickbacks to lenders by appraisers is also commonly known in Massachusetts, New Hampshire and Connecticut. Is this not the lender getting appraisal fees without a license? We see no end to the practice."

Michigan

"Michigan is out of control!"

Nevada

"Several real estate companies in the Las Vegas market are ties with mortgage companies. That is not so new, but when they are recruiting agents, their fees are so low that it concerns me that they are subsidizing the cost for the agents' fees on the real estate side with the mortgage fees. This to me would be an influence to the consumer even if they disclosed they were receiving compensation from the lending side. The consumer acknowledging the compensation may do so unknowingly or is lead by the agent in a manner that is not apparent to the consumer and are actually paying more for the cost of the loan to subsidize the agent's or broker's overhead cost of doing business. One company also was advertising 125 percent commission on the sale if tied with a mortgage from the company. New homebuilders do this all the time with their lenders offering incentives only through the in-house lender. My thought is that if this practice is allowable, that we should do the same to stay competitive in the marketplace, although I do not believe this to be in the best interest of the consumer, and would violate the fiduciary responsibility of the agent and the broker."

Texas

"RESPA violations are plentiful in the Dallas-Ft. Worth area, as many Realtors do not disclose anything and some mortgage companies are receiving gifts from appraisers to get more of their business that is not disclosed by either party."

Virginia

"A problem that I continually see in our market lies with CRESPA (Consumer Real Estate Settlement Protection Act) - approved settlement companies marking-up fees. Typically, I see the surveyor's fee increased $100+ with the HUD line reading 'Survey to Sam Surveyor/XYZ Settlement Services...$400." Having made inquiry of the surveyor, I was able to confirm that his invoiced fee was $300. Same thing occurs with the abstractor's fee. Fees are charged for the preparation of the R-5 form (a Virginia-required seller form ONLY if the seller is moving out-of-state or is an out-of-state resident) even if the seller is a Virginia resident and not moving out-of-state. The most disturbing thing that I see is the marking-up of title insurance rates beyond the normal rates found in Virginia. What I encounter are companies charging no or a minimal settlement or closing fee and then marking-up the title premium $250-$300. We also have a situation where a particular title agency whose primary stockholders are various local banks. Loan officers are paid bonuses by the bank for every loan that is insured through the bank-owned title company. Borrowers are given a very lukewarm choice of competing title companies and, on occasion, a loan is approved with an unwritten agreement that the borrower will use the bank-affiliated title company. Title companies having affiliations with local Realtors is an ongoing problem. Sales agents are highly pressured to use the broker-related title agency. The current situation is making it harder and harder for us to compete. I have never complained about competition but the playing field is not level. My choice to remain competitive is to break the rules. I have no desire to encourage this cancer that is destroying our industry."

Insert your state here

Do you know of suspicious things going on in your local marketplace that you'd like to see investigated?

In order to report a RESPA violation, you should send HUD a written complaint describing the practice that you believe violates RESPA. The complaint should include the names, addresses and phone numbers of the alleged violators. HUD prefers that you also include your name and phone number in case an investigator wishes to ask further questions. You may request confidentiality. Send the complaint to:

U.S. Department of HUD

Office of RESPA and Interstate Land Sales

451 7th Street, SW, Room 9154

Washington, DC 20410

You can also reach HUD's RESPA division by phone at (202) 708-0502 or by e-mail at hsg-respa@hud.gov

You may also wish to send a complaint to state and other federal agencies that have the responsibility for regulating the settlement providers engaged in the referenced practice. As far as we know, there is no way to know if a company has already been reported, because the agencies won't release that information until after an investigation is completed.

Market Report - Selling In A Declining Market

Attention sellers, we are currently in a declining market. If you are serious about selling your home then it is critical that your Realtor understands the dynamic between the market trend and your home's value. Let me explain. The longer your home is on the market the lower the market value. In order to sell your home as quickly and profitably as possible, you must get ahead of the trend. The 6-month trend for Boston Single Family homes is a 7.79% decline in values and a 36% decline in volume. This is based on the median sales price in Boston from May 2007 to October 2007. This gives us an average monthly decline is 1.3% in value. If you are serious about selling your home then you should seriously consider reducing the price by 1.5% - 2% to get ahead of the negative trend. It may be painful to consider but it will save you money and time in the long run. Also, make sure that your home is accurately valued before your Realtor reduces the price. If you reduce the value by 2% and it wasn't priced appropriately, your home will not sell.

Another option would be to wait 5-6 months for the spring market. If you opt for the spring market then I would recommend that you take your home off MLS by the end of December and Re-list it at the beginning of March, and here is why. Many agents are reluctant to show properties that have been on the market for over 150 days. This is because they feel that if the home hasn't sold after 150 days of showings at the same listing price then it is unlikely that their clients will be any more impressed than the other prospective buyers. Unless there is a significant price decline, homes that linger on the market attract very little attention.

Other factors to consider when selling your home are the overall condition, paint colors, furniture arrangement and minor (do it your self) projects. Many sellers just list their homes and do not consider any repairs. A good question to ask yourself is "What can I do to enhance the appearance of my home?" You will be surprised at how many ideas you will come up with and many of the updates are easy enough for you to do them on your own.

Here are some tips for sprucing up your living space

1. Paint - Look for opportunities to brighten your homes appearance with paint. Lighter colors make a living space feel larger and more spacious

2. Furniture - Furniture placement is critical in selling your home. When it comes to furniture less is better. It is always best to arrange your furniture in a manner the opens the room up. Try to place the furniture against the walls or close to the walls. Cluttered rooms are unattractive and send potential buyers out the door faster than you can say HELLO.

3. Be sure to remove any family pictures from the walls and common areas. Pictures have a way of taking the buyers focus away from the home and focusing them on your photos. If the buyer has seen a lot of homes that day, they will remember the pictures and may forget which home was yours. The less they have to think about the Better

4. Make sure you are working with a real estate professional that understands the market and knows how to help you maximize your homes value in a declining market.

5. And lastly, any improvements are better than no improvements. Just do something, even if it is as simple as painting 1 or 2 rooms. Every little bit helps.

Insurance Marketing Research - Top Secrets of Annuity Marketing Analysis

The insurance marketing research I reveal on annuity marketing analysis is not available anywhere. You can get the top secrets found by intense analyzing of insurance annuity marketing research right now.

The Question? Just how many agents can a single annuity marketing company or firm recruit?  Some marketing firms do not get it, they honestly believe the answer is an infinite number. That however is dream thinking, since all these agents are not going to license with you, no matter how good your product is are how high the annuity commissions are.

Please remember while the annuity marketing research figures are estimates, they are calculated by intense analysis of database information on the licensing and contracting trends of over 500,000 agents. Of these over 85,000 of them being considered insurance annuity brokers. If you have 300 annuity brokers under your marketing contract, with 150 producing issued cases during the last 6 months, you may think you are doing an excellent job. You probably are, but trying to increase your success might be extremely hard. That's why a few recruiting and top secrets of marketing research are being revealed right now.

Eventually a point is reached where you might be close to annuity marketing saturation. Upon reaching this plateau, no matter how good you and your products are, only a limited number of brokers will be contracted. Suddenly a cost of increasing your share of quality annuity brokers becomes too expensive. Then you must spend a tremendous outlay of recruiting money just to stay even. It's no secret that your competitors are in relentless pursuit. To make up for a lost top producer you must recruit a replacement of at least the same caliber.

Reaching an annuity marketing high stagnation level certainly puts you at a center of envy among your competitors. But, how do you know when you have truly reached this level? Are you permanently or temporarily road blocked? Will adjusting promotional and marketing techniques clear the path for you to become and stay the leader of the pack?

These questions are difficult to answer,  yet necessary to understand. Many life annuity marketing firms leap blindly forward without research analysis.. Have you researched how many brokers are selling annuities in your state or territory? We don't know how you could know come close to figuring that out.

Do you know who are the total annuity producers that the top 5 annuity marketing companies have under contract? And what about the rest of the other 20 to 35 annuity carriers? NEVER have we seen any figures of this nature published. Ambitious  firms can now know these previously unpublished, yet critical recruiting and marketing secrets.

The breakdown of annuity brokers, by number of the number of annuity carriers they are licensed with, is as follows: Just under half are licensed with a single annuity company. The remaining 51% of annuity brokers contract with 2 or more companies. In fact, 16% currently represent 4 or more  carriers. Conclude that annuity brokers licensed with 3 or more  carriers are the ones producing mega premium dollars, (75% to 80% of the total insurance annuity production)   Insurance marketing research analysis of agent database records reveal that hardly any top annuity brokers represent just one carrier.  A top secret to getting a larger piece of the annuity marketing action is focus your attention on  target marketing the jumbo producers.

Using an example state of 20,000 licensed life and health agents, here's a typical breakdown of how many annuity financial insurance companies they are currently licensed with. 1  carrier equals 1,812 annuity brokers, 2  carriers equals 936  brokers, 3  carriers equals 394 brokers. and 4 or more carriers equals 598 annuity brokers.

Be realistic with using the annuity marketing strategy. There are only a certain number of annuity brokers, and that is it. You really are not going to "make more" annuity brokers using telemarketing and email efforts. Keep a persistent  marketing plan, hitting the insurance annuity brokers hard. The top two tiers should be contacted at least 4 times a year, while the other  brokers receiving information only once. One of the top secrets is obvious... the minute you stop, your competitors keep going.

For Sale By Owner - 950 Shermer Road - Northbrook, IL

For Sale By Owner - 950 Shermer Road - Northbrook, IL. Large, beautiful house for sale on scenic Shermer Road is the ultimate family house.

11 Surefire Methods To Have People Begging You To Sell Their Items on EBay

Many people run around from garage sale to garage sale trying to find collectibles to sell on E-Bay. Other people use dealers and E-bay itself to find collectibles to sell on E-bay. Wouldn't it be nice if you could get people to call you to buy their collectibles?

In her recent newsletter I Want Collectibles News Terry Gibbs outlined 27 methods you could use to have people call you with collectible items to sell. Some of her methods are fairly obvious like running ads in newspapers. Here are 11 Surefire Methods to Have People Begging you To Sell Their Items on EBay

1 - Modify your answering machine message to say I pay cash for widget collectibles
You may also want to add a signature line to your E-mail that says you pay cash for widgets.

2 - Invite some people over to see your widgets.
Maybe members of your widget collectible group or some local civic or church group.

3 - Display your widgets at a library or anyplace else with a display case.
Of course you want to make sure your widgets are displayed in a safe and secure environment

4 - Have Business cards printed saying we pay cash for widgets.
Years ago I received a business card that was a replica of a $50 folded in half. The business was offering a $50 discount on Home Improvements. I kept that card for years until I moved and it got misplaced.

5 - Buy space on a little league or pop warner field saying I pay cash for widgets
You may also want to purchase an ad in a civic group, Church, newsletter

6 - Send a letter to Real Estate agents saying you pay cash for unwanted widgets

7 - Tell other widget dealers you will pay cash for the widgets they don't won't

8 - Tell other collectors you will buy their unwanted or duplicate widgets

9 - Put a sign on your car saying you pay cash for widgets

10 - Place 3x5 cards on Grocery store bulletin boards offering to pay cash for widgets

11- Tell your Barber or hairstylist you will pay them for referring widget sellers to you.
Why stop with barber's anyone that deals with the public like dog groomers. Bartenders, Gardner's and Physical therapists just to name a few may be a great source of referrals.

Be Creative and find 2 or 3 methods of your own before long you will have more then enough widgets to sell on ebay.

Getting a Grip of the Elusive Balance in the Real Estate Market

The dramatic dips and peaks in the real estate markets are probably one of the most interesting but at the same time frustrating events that can ever happen to a country. Recent developments and shifts in this sector have led to one of the most serious economic setbacks since the 1930s. It is one of the most difficult learning experiences and it has shown that we need to be guarded and not allow ourselves to be drawn into a false sense of security as fortunes can significantly turn into a nightmarish situation that can set us back significantly with a blink of an eye.

Amid the economic chaos and difficulties that the world economy is going through, there is a need for us to be introspective and learn how we can prevent this from ever happening again. This problem has taught us several lessons. For one, it has taught us not to take even the most inconsequential thing for granted. Secondly, we must always remember that market forces will always seek equilibrium albeit in their own time and pace.

A critical element which must always be present when making major decisions is the existence of stable and predictable market conditions. This consideration is most essential especially when weighing your options in regard to your first home purchase. Re-housing and relocating to match the shifts and changes in your economic condition and critical considerations in the upper and more mature segments of the real estate market must also be carefully assessed in the face of the recent events that have brought untold and unimaginable difficulties and financial woes to all sectors of the economy.

One of the things that we have learned from this very difficult experience is that stability in the real estate environment can not always be assessed using conventional parameters. The real estate market is one dynamic economic element where stability may not be clearly manifested. Since we can not defer our actions for a long period of time, we must accept the fact that we have to make major decisions even if market conditions are volatile and unsettled.

This means that we will have to define our positions and shape our buying decisions in the face of major swings and shifts in the prices of real estate properties, mortgage rates, prevailing demand, job security and income stability among others. We may have a clear understanding of the dynamics of the real estate market but this is not enough to give us a full grip and control of transpiring events.

Amid this present condition that we find ourselves in and the dilemma that we have to face when making home buying decisions, it is crucial that we have access to relevant and accurate information. This is the main reason why it is crucial that we establish a strong relationship with a professional and reliable real estate broker. Getting the services of a professional real estate broker must be the first step in our home buying decision. An experienced realtor has the knowledge and practical experience needed to help you make your final decision whether you are planning to buy your dream home or divest of your real estate property ownership.

1130 Preserve, Bartlett

Contemporary in Bartlett, IL

DotLoop News from Nashville, Pt. 1 ~ 4.28.10 ~ REBar Camp King Brian Copeland

Who wouldn't want to work in the world of real estate and technology? Another day, yet another thunderstorm of enlightenment, this week at REBar Camp Nashville with a few hundred new friends. REBar Camp Nashville was organized by the King of Nashville Real Estate, Brian Copeland (left). As the first online collaborative environment for real estate, DotLoop (www.dotloop.com) was proud to step up as a sponsor and attended in force, accompanied by Mike Parker from Huff Realty (he's the friendly gentleman on the right). A sample of new friends met by DotLoop CEO Austin Allison (above) are: Tom Cain from Champaign, Illinois; John Jones from Murfreesboro, Tennessee; Rob Levy from Portland, Oregon; Tami Simms-Powel of St. Petersburg, Fla., and the O'Neils from Indianapolis, Jason and Ryan. For more information about DotLoop, please call (888) Dot-Loop, visit www.dotloop.com or send an e-mail to info@dotloop.com. Next week, we're with the Illinois Association of Realtors, followed by the NAR MidYear Conference in Washington, DC .... Keep It Simple!

Bill Maher And Dick Durbin

Bill Maher talks with Illinois Senator Dick Durbin. PROPERTY OF HBO

235 Van Buren, 40th attic construction

It was a beautiful day in Chicago's South Loop yesterday as we rode the construction elevator to the 33rd floor of this new high-rise. We then walked to the 39th floor and climbed the construction ladder to the partially complete 40th floor, where we shot this raw video.

A family-friendly home with a 3-hole golf advance in Northfield

Too often the terms "family-friendly" and "perfect for entertaining" can't be applied to the same home. That's not the case with 775 Sunset Ridge Rd in Northfield, a North Shore Chicago suburb that residents tout for its "country feeling." I stopped in to visit Maureen Mohling of Coldwell Banker, one of our local correspondents, who had decided to host an open house despite its being Mother's Day. Maureen guessed (correctly, as it turned out) that the popular Mother's Day brunch at Sunset Ridge Country Club, directly across the road, would draw home buyers. Maureen introduced me to the owners of the home, Heidi and Jerry, who graciously accepted my invitation to talk about what they enjoyed about living in Northfield in the home they built 21 years ago. The 6-bedroom home, with 6 full and 2 half baths and a 3-car garage on just over an acre is priced at $1950000.

A characteristic Seyfarth home in Glencoe, Part 3

Robert E. Seyfarth was a prolific North Shore architect who designed 100s of distinctive homes during his llong career. The Abel Davis home, 600 Sheridan Rd in Glencoe, was built in 1925 and has recently undergone a complete renovation. The home is currently offered for sale at $3875000 through Maureen Mohling and Julie Deutsch of Coldwell Banker. In this third part of our video tour we start with the lavish master bedroom suite, which is set off from the rest of the bedrooms by a long entry hall. We also begin paying greater attention to the geometry of the home, a key factor in its individuality. And, we pause in another of the home's "fun" rooms the laundry room.

Advantages of a Local Insurance Agent

There are a ton of automobile policy organizations which must give the customers a costless quote online or over the telephone. As this is all well and good, most of these companies do not give a city firm in that that customer must visit. Sometimes, it is beneficial to have a city agent who recognizes one, understands the area, and will help one at the notification of a moment.

When one has the luckless event of being in an accident, one of the first things they think of performing is making a call to their agent. A community agent must be at the scene of an accident within minutes if it is close by or they will aid the customer in getting a tow truck to the scene. Having an agent who knows the community body shops, police departments, and companies and who is willing to go the extra mile makes it worthwhile to pay for premium coverage.

many individuals have personal situations in which a community agent must help out with. It is very beneficial to be able to sit down with the agent and let him get to know you on a personal level. Being able to personally advise people in individual situations can help customers get the best coverage rates possible. This will only be done on a one on one basis and definitely will not be done online.

Most insurance agents want to be available to help the shopper. Sometimes customers might need help in locating a towing establishment, they could be stranded at the scene of an accident, or might even just need help in understanding exactly what their insurance policy means. This is where it can come in handy to have an agent one can call at the notification of a moment.

CENTURY 21 Real Estate acreage and home in Buncombe

Lovely 15 acre homesite with 3 acre pond just off Interstate 57 and Lick Creek Road in beautiful southern Illinois.

What it takes to buy a beach home in Winnetka

Maureen Mohling, one of our loca correspondents for Winnetka, has a flair for finding the right word or phrase to summarize a complex topic. "Patience" was her response to my asking what it takes to buy a beachfront home in Winnetka. Lakefront property in Chicago's prime North Shore suburbs rarely comes on the market and when it does the homes often sell quickly or in private transactions. Watch the video to learn what, besides patience, it takes to buy a beachfront property in Winnetka.

Real Estate: Inventory of Unsold Homes Growing Steadily Across the Nation

The nation's inventory of unsold homes - an important component of a more balanced housing market in the second half of 2005 - is growing steadily in many areas of the country even though buyer demand continues strong, according to the latest HouseHunt, Inc., quarterly "Current Market Conditions" survey. The percentage of member real estate agents reporting plentiful vs. limited supplies increased from 33% in the first quarter to 38% in April, May and June.

Exceptions would be South Florida, Arizona, Southern California and certain other housing and job growth hot spots.

Market equilibrium would be attained when the present 4.3-month national housing supply increases to about six months, or about a 50-50 buyer-seller ratio.

Survey results are based on Current Market Conditions sales data reported by HouseHunt's Exclusive Agent Referral Network (EARN) members in 47 states.
Survey results also included:

o Average national home price appreciation slowed to eight to 10% on an annualized basis in the second quarter as compared to higher, more substantial double-digit price increases in 12-month comparisons in the past two to three years.

o First-time buyer activity declined from 40% in the first quarter of this year to 35% in the second quarter even though mortgage interest rates continued near historic lows and funding is available and relatively easy to find in interest-only and other exotic loans.

o Nine of 10 home sellers are getting 95% or more of their asking prices. Nearly half of those are getting 100% or more. An overwhelming majority of sellers are still getting multiple offers.

o Sixty-five percent of listings are selling in 30 days or less.

Michael Bearden, president and CEO, welcomes the near-term probability of a slower-paced, more balanced housing market: "This would be positive news for consumers, particularly for first time and other entry level home buyers. Slower appreciation and a plentiful supply of unsold homes would certainly energize the entire market in all price ranges. It would also dissipate fears of a housing bubble price collapse."

Mandeville Louisiana Real Estate Brings Homewowners to the Tammany Trace

St. Tammany Parish is undeniably one of the richest parishes, when it comes to nature & beauty. An apt tribute to this beautiful community has been paid in the form of the Tammany Trace. The Tammany Trace is a 31 mile long trail, which was formerly a railroad corridor, and served as a lifeline for the parish. The trail connects the communities of Covington, Abita Springs, Mandeville, Lacombe and Slidell.

The Tammany Trace is a journey that takes you through the rural and urban communities, and lets you take in all the charm and beauty of this modern, yet relaxed and peaceful world. You can take the journey on foot, on bicycle, skates or even horse back. There is a parallel equestrians trail alongside the asphalt trail. The Tammany Trace has been serving the community for a little more than a decade.

St. Tammany Parish President, Kevin Davis, also called the Father of the Trace, lead the way to convert the Illinois Central Railroad in to this breathtaking trail, which has been included in the White House Millennium Council's 50 national "Millennium Legacy Trails". The abandoned Railroad corridor was purchased by the St. Tammany Parish government in December 1992, and with the help of grants and federal assistance, it was converted in to what it is now.

The trail now has become almost a wildlife conservation area. It links various parks together and gives you a beautiful view of the rivers, bayous and streams from 31 railroad bridges. The maintenance, upkeep and further development of the trail are the responsibility of a non-profit private cooperation named The Tammany Trace Foundation. Numerous events, races and the annual Holiday of Lights event help raise the funds for the upkeep and expansion of the trail.

For the people who own their own piece of paradise in Covington Louisiana real estate, Mandeville real estate or the other lovely communities, linked through the trail, the Tammany Trace provides a beautiful route for their daily walks, exercise or can be a great outdoor activity on a weekend. The trail also becomes an educational resource for children, giving them an insight into the habitat of different plants, birds & animals.

The Tammany Trace has become an icon for the local communities which offer so much more to their residents. A great life style, relaxed with all the modern facilities yet lower living cost, stable economic growth in the region, good and sound educational options for children, makes this piece of heaven worth considering.

The Mandeville real estate and Covington real estate markets, both linked by the trail, are the hot spots for prospective buyers, moving to the area or thinking about enhancing their lifestyle. The options are plenty and seductive. Getting into the market with the help of a good real estate agent is a must. An experienced realtor can guide you through the complicated process of buying a home and help you understand your requirements of home ownership. A real estate agent will find you the most appropriate home for you. The knowledge of local market and its trends and hunting the right bargain for you will be the services much needed by you.

Karate Tournament - Real Estate Wholesale - Champaign Urbana Illinois

Schwaps (www.schwaps.com) founder, Justin McClelland (http chronicles his company in its beginning phase. In this video he competes in a Karate tournament in Rantoul, Illinois.

3 Tips to Help You Find Quality Life Insurance Leads

If you are a life insurance agent, then you no doubt already know that the hardest part of an agent's job is getting business. Some agents rely on the tried and true method of cold calling. Others take advantage of newer approaches like online lead generation. The truth is, there are any number of ways to increase business and get new life insurance leads. You need only take the time to find yourself some new life insurance leads.

Here are three ways many insurance agents get new leads and make more sales. Many agents rely on one or more of these methods. Some agents prefer one method over all others, while others use them all equally. Regardless of what you currently do, if you need to increase the number of leads you have, trying one of these approaches is sure to help.

The first method you should try is to exhaust your personal network. Networking is essential in the sales industry, and life insurance sales is no different. Talk to your family and friends and see if they can refer anyone to you. Next, talk to your current clients and past clients to see if they could make any referrals. Not only does this increase your number of leads, but it could lead to more sales with your current clients. You can also consider sending out mailers to clients, although a personal phone call offers many advantages.

Another method that is becoming quite popular, is to let someone else find the leads for you. Indeed, there are several companies that specialize in collecting life insurance leads. They collect these leads specifically to sell them to agents like you. They can provide you with as many leads as you like, and generally the cost is very reasonable. If you need a boost of leads, this is perhaps the fastest way to get them. Some of these online lead providers even offer free life insurance leads for you to try out before you purchase from them.

One of the oldest methods of insurance lead generation is cold calling. This is an essential skill that any agent should have. It is true that cold calling isn't the most efficient means for finding leads, but it can be effective, especially if you are out of other ideas. The key to effective cold calling is to know what you are going to say ahead of time. Take the time to write out a script to help you when you make a call. You only have a few seconds to make a first impression and get a person's attention, so make it count.

With these three methods you are sure to boost your number of life insurance leads in no time. You might find you like one approach more than the others. If this is the case, then stick with it! You'll have all the business you can handle in no time.

2008 IAR Convention Welcome

IAR Convention Chair REALTOR® Michael Oldenettel welcomes 2008 IAR Convention attendees.

12 Tips For Buying an Industrial Real Estate Property

In today's new economy many business owners find it advantageous to own verses leasing a commercial real estate property. But buyer beware, it can get tricky. The following ten tips should help:

1. What You Want To Use The Property For - For example manufacturing, warehouse distribution, storage, service, and repair, whatever...
2. Determine What Size You Need - Have an upper and lower size range; consider future expansion needs.
3. What Kind Of Features Do You Need - Ceiling Height, Docks, configuration, power, column spacing, offices?
4. Budget - How Much Can You Pay? How much will you save?
5. Wage Rate in the Area - Certain areas have higher pay scales - and this may be important to your bottom line.
6. Financial Incentives - Are there incentives available in the area you are looking in. For example, tax bonds.
7. Financing - Is it available and what are the terms? How much cash do you need? Pre-approval needed?
8. Logistics - Where Should You Locate? Near Rail, Expressway, Near Staff?
9. Expenses - What Are The Expenses Associated With Ownership -- taxes, maintenance, insurance
10. Create Leverage In Negotiation - always negotiate on more then one property at a time; don't become attached.
11. Determine Timeline - When do you need to close? Do you have to sell or sublease?
12. Hire A Commercial Real Estate Broker - ALWAYS! It costs you nothing and can save you money and time.

Hopefully these ten tips will help you as you find the perfect location for your business.

Chicago absolute acreage bazaar trends

We sat down recently for a wide-ranging discussion with Michael Sato and Chris Feurer, agent - developers who are the new owners of Jameson Real Estate. This is the first part of our discussion.

Sell and Rent Back My House

Lets face it, the real estate market has changes and many of you got caught with high mortgage payments and now have a house that you can not sell, or can you. When the real estate market slows, the demand for houses goes down and appreciation stops. The majority of home buyers wait on the side lines for the real estate market to come back around.

If you own a home that you can not afford then you need to sell now, not a few years from now when the home buyers decide to buy. Well, know that you still do have options. One great option to sell your house now, is to sell it to a real estate investor and then rent it back. Yes some real estate professionals do buy houses and then allow the home owner to rent it back.

The sell and rent back process is fairly simple actually. If your home qualifies then you sell your house to a professional home buyer, keep living in the house, pay rent, and if you decide you want to purchase the house in the future you have the option to.

The rent back option is great for home owners who are over extended and can not afford their mortgage payment. Possibly they purchased a home and now their mortgage is adjusting and they can not afford the new payment. Just contact your local home buyer, ask them to buy your house and let you rent it back. If your home selling situation works for the real estate investor then you will have no problems.

Another great thing about the sell and rent back home selling option is that you can find out if your selling situation qualifies quickly and painlessly. All offers by professional real estate home buyers are no obligation offers which means you have nothing to loose.

Who knows, you could sell your house this month, get your finances in order and buy back your how in a few months. Like I said the process is simple and can be done quickly. Besides, when the offer is a no obligation offer, you have nothing to loose.

If you need to sell your house fast and do not know where to turn, contact your local home buyer. They can explain your free home selling options and help you. Just taking a couple minutes to find out ways to sell your house could save you from a foreclosure and save your credit.

Experienced Farm Insurance Agents Understand the Problems Estate Taxes Can Cause

I know you think estate taxes are a thing of the past, especially for someone like you whose farm business is small and who could take advantage of the transfer at death of your entire estate to your spouse. I also know that if you are fifty years old or older you have seen such swings in estate and income tax policies that you know for sure - just because they are the way they are today, doesn't mean that's the way they'll be when your family will have to pay them.

By the time you finish reading this article the Congress will have changed yet another law, repealed some and created others - some which will impact you this year and some you'll encounter next. And some you won't be impacted by for years to come. The question you will have to answer for yourself, maybe along with the insights of your farm insurance agent and other trusted advisors - is whether you want to be ready for those changes when they happen or if you want to do nothing today and hope for the best later.

Here's a little flashback, and maybe flash forward. When you die the IRS will establish a value for your farm business and they'll compare their figure with those on your estate tax return. Remember, that may or may not be important today - or when you read this for the first time, but you're not dead yet.

So it really doesn't matter now. Later however your executor may be dealing with the IRS and they will, naturally, have conflicting goals. Your executors will want to press on with how hard up you were and how little the land is worth, really. They will do whatever they can to keep your estate values low.

If you have been around long enough you have earned 12% on your CDs, you've seen fifty percent tax rates, and paid less than a dollar for a gallon of gas. Who knows what the estate tax situation will be when your estate is probated.

And if it is long enough into the future the value of the land may exceed anything you can imagine today. If you are able to pass it along to you widow without taxes being due - just imagine what they will do to her, or to your heirs - when she dies later on down the road.

The reason the IRS wants a high valuation is obvious. It will create the possibility of more taxes then or in the future. Whether we like the idea or not the IRS will be around long after we're gone. It is fair the speculate that we'll either pay them now or later, and they will work at creating the highest taxable estate possible for that eventuality.

In the old days when the IRS and executor disagreed matters often ended up in tax court for two or three or more years. During that time, regardless who the court agreed with, the estate ran up legal bills and the assets of the farm we tied up all the while.

If there was something you could do today that would avoid this potentiality, years even decades in the future - would you do it? If not then you are probably too naive to see your farm succeed for the long term anyway.

On the other hand if you are smart enough to want to stay in as much control of your farm's future as possible, you can solve the problems that happen to the well meaning farmers whose lawyers and accountants say, "don't worry about it" - hey it's not their farm. It's yours and if you don't worry about it who will?

Simply put, a well drafted buy-sell agreement solves the problems that may occur in the future by establishing a value for the farm business which is binding on the IRS for estate valuation purposes. If the agreement sets a fair price and you are obligated to sell both during your life and at death - the IRS will not be able to value the farm at a higher figure.

The agreement will also eliminate the delays and expenses which come with resolving a valuation dispute in tax court as well. No matter what the estate tax situation is today (the day you are reading this article) it is likely to be different on the day of your death. Do you want to do nothing and hope for the best, hope the IRS will not change its rules? Or do you want to get on top of the situation now and stay there?

Your buy-sell agreement also guarantees a fair price to your family which will make sure they receive value for your years of hard work. And it will allow the farm to continue on unencumbered in the hands of others based on decisions made by you when you are in your strongest bargaining position.

There are many other reasons for having a buy-sell agreement, whether you are in business alone or with partners. And there are people who will help you make the right decisions about the need and type of buy-sell agreement, and do so probably at no cost to you.

Farm insurance agents are unique among your other professional advisors. Generally they do their work on your behalf at no charge, relying on the commissions paid by the insurance companies they represent. In other words they get paid when you take action.

If you do nothing after their explanations, consultations, examples, and illustrations - farm insurance agents do not earn anything. That is their contract with you and the companies they represent. You will always get their best efforts on your behalf and the insurance company is paying for it.

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National Association of Realtors

Realtors, the members of the National Association of Realtors, are the largest trade association in North America. It represents over 1.2 million members plus all of their councils, institutes, societies and anything they are involved in regarding residential and commercial real estate. The National Association of Realtors grows each year and the association's president for 2008 is Richard F. Gaylord. The association operates as a Self Regulatory Organization.

The National Association of Realtors was founded in 1908 as the National Association of Real Estate Exchanges. The original group was located in Chicago, Illinois. The group then changed its name to the National Association of Real Estate Boards in 1916 and then acquired its current name in 1974. The current version of the group, the National Association of Realtors, is consisted of a variety of different members.

Those members are residential and commercial real estate brokers, salespeople, appraisers, counselors, immovable property managers and any other members that practice within the industry where a state license to practice is required. All members of the National Association of Realtors belong to over 1,600 different boards locally. All members are also required to honor a realtor code of ethics that includes their promises to their customers, clients, the public and to their fellow realtors. Each local group of the 1,600 is required to enforce the realtor code of ethics with a Professional Standards Council or Committee. If a realtor is found guilty of breaking the code of ethics they can be fined upwards to $5,000, be enrolled in an educational course, can have their membership suspended or expelled, be issued a letter of warning or can be placed on probation.

The following is a list of NAR (National Association of Realtors) sponsored members:

Accredited Buyer Representative
Accredited Land Consultant
Certified Commercial Investment Member
Certified Property Manager
Certified Real Estate Brokerage Manager
Certified Residential Specialist
Certification for Internet Professionalism
Certified International Property Specialist
Counselor of Real Estate
Graduate of the Realtor's Institute
Real Estate Professional Assistant

Not only does the National Association of Realtors provide services to the public when looking to purchase property but they are also heavily involved with political campaigns. The National Association of Realtors had the largest PAC, or Political Action Committee, in the United States in 2005. The National Association of Realtors is the United States' third largest donor to political campaigns. They have donated an estimated $30 million to various political campaigns since 1990. Their donations have been split up almost evenly since 1990 between Democrats and Republicans. The group has donated 53 percent of their money to Republicans and 47 percent to Democrats.

The terms realtor and realtors were trademarked by the National Association of Realtors in 1949 so that no other commercial party could use the term and cause confusion as to what was being referenced. Only members or license holders of the National Association of Realtors can use the terms realtor or realtors as of 2008.

2006 First Quarter Real Estate Market Update

Buy, sell or hold seem to be the biggest worries of real estate investors in the 2006 residential real estate market. After solid double-digit appreciation in many major markets the last five years, investors see the brakes on growth in 2006. Where to go? Mark Nash real estate author of 1001 Tips for Buying and Selling a Home and syndicated columnist for RealtyTimes.com gives his report on the first quarter of 2006.

-Atlanta, Georgia. Rising inventories could slow appreciation rates that have not matched other major markets.

-Austin, Texas. Good news here, affordable housing prices attracting employers. Rising appreciation.

-Boise, Idaho. New on real estate investors radar, attracting scores of out-of-state buyers. Good profit prospects.

-Boston, Massachusetts. Soft job market, falling prices and bloated inventories.

-Chicago, Illinois. Recent national, state and local statistics dispel bubble trouble in conservative middle America.

-Dallas, Texas. Prices creeping upward, fueling investor interest.

-Detroit,Michigan. Market impacted by soft auto industry and fears of cutbacks.

-Houston, Texas. Demand from Katrina transplants driving a strong market.

-Las Vegas,Nevada. Market returning to normal appreciation rates, demand stays steady.

-Los Angeles, California. Declining prices after years of bloat are keeping buyers sidelined to see where the plateau will fall.

-Miami, Florida. Glutted inventories short-term, south Florida waiting for the next batch of boomers. Many investors sitting on the sidelines.

-Minneapolis, Minnesota. Downtown new construction saturated. First-time buyers breathing life into market.

-New Jersey. This is state is one large bedroom community, prices flat, the sold-in-five-hours days taking a vacation.

-New York, New York. Market price pressure building, but don't call it a buyers market. Sticker shock anyone?

-Philadelphia, Pennsylvania. Weak job growth projections. Flat appreciation expectations.

-Phoenix, Arizona. Ignored in the boom, now being discovered by investors. Most cities here are bargain-priced.

-San Antonio, Texas. Waking from a stagnant appreciation period. Good returns projected here.

-San Diego, California. High inventories, fiercely competitive sellers and declining prices.

-San Francisco, California. Greed factor subsiding, weathering the storm, bidding wars are gone and could be saved by tech industry emerging out of their bubble.

-Seattle, Washington. Good economy and low inventories offer attractive appreciation gains in 2006.

The 30 Second Scan - An Employer's Perspective

If you have been in a job-search for very long at all, you have most likely read that employers do not read resumes, they scan them.

Do you think a 30-second scan is ridiculous? When you consider how important filling a vacant position must be to an employer, that isn't a very long amount of time, is it? Why wouldn't an employer want to read EVERY resume to make sure they were hiring the right person for the job? Surely there is no way to properly get a feel for someone in 30 seconds.

Well, think about it from a hiring manager's point of view.

The day starts at 7:00am with a bang - the phone rings, there are email messages to answer and a meeting with marketing at 8:00am to go over the recently vacated Brand Manager's position.

From there, a round of interviews for an opening in the executive suite for an Administrative Assistant have to be performed with little or no time to review the resumes prior to interviewing each candidate.

Next thing you know, it is lunch time, but hey, there is no time for that since a meeting with Benefits Administrator is next on the schedule and the recent changes in the medical plan have caused a lot of headaches in trying to recruit new sales associates.

After that shouting match, it is time to check the latest HR new hire reports to set up the next round of orientation meetings as they are supposed to take place every 2 weeks and it is already a week past that.

A 2:30pm phone call to the HR assistant who handles the orientations leads to a dozen more phone calls to get the conference room scheduled as no one wants to give up their time slot for anyone else.

It is nearly 4:00pm. A quick trip to the restroom ends up taking an hour as the recently hired Sales Director pauses to lash out about the medical benefit changes which were not a part of the original employment agreement.

The final meeting of the day consists of all HR managers discussing, usually all at one time, the impending acquisition of a new company.

Before driving home, a 4 inch stack of resumes are stuffed into a briefcase to be reviewed at home after the children are in bed.

Now, does a 30-second scan seem a little more reasonable?

Yes, filling vacant positions is important. It is extremely important. One of the most serious errors a hiring manager can make is bringing someone into the organization who is not qualified for the position they are hired for - OR - they do not fit with the corporate culture. Every new hire reflects on the hiring manager - good or bad.

Realistically, if time permitted, resumes WOULD be reviewed more thoroughly, but it simply isn't possible for most hiring managers.

Something else that is important to point out is the fact that most job candidates make it pretty easy to go through that 30 second scan. There simply are not that many job seekers who take the time to ensure their resumes are error-free. It is truly easy to eliminate 50% or more of the resumes in that 30 second scan.

If you want to master the job-search process, you have to make sure you make it past that 30 second scan. Proofread your resume again and again. Do not give the employer a reason to eliminate you right away. Once you are past that 30 second scan, your resume will likely get a better review. At that point, you will enter a whole new arena of resume issues (which will not be addressed at this time).

Your goal is to get past the 30 second scan. Go proofread your resume!

Chicago Condos - Now Four-Straight Months of Increased Sales

For the last four months, from September 2009 to December 2009, the number of Chicago condos and single-family homes sold has increased from over the same month in 2008. More simply, more Chicago condos and single-family homes were sold in December 2009 than in December 2008; in November 2009 than in November 2008; and so forth. The hope is that the four-straight months of increased sales might be signaling a much-welcomed stabilization of the local housing market.

The following information is provided by the Illinois Association of Realtors.

Year-Over-Year Sales Of Chicago Condos And Single-Family Homes

December 2009: 1,768 existing single-family homes and condos sold.
December 2008: 1,265 sold.
November 2009: 1,859 sold.
November 2008: 1,094 sold.
October 2009: 2,012 sold.
October 2008: 1,566 sold.
September 2009: 1,918 sold.
September 2008: 1,813 sold.

Aside from the consistent sales growth in the city of Chicago, condo and single-family home sales have increased year-over-year for six months in the general Chicago area. In December 2009, 5,752 of these existing homes and condos were sold in the Chicago area compared to just 4,320 of these existing homes and condos sold in December 2008. That is a whopping 33 percent increase.

Chicago-Area Counties' Condo And Single-Family Home Sales

The eight counties in the Chicago area, much like the city of Chicago, have seen improvement in sales volume as well. Cook County, for instance, which houses Chicago, saw December '09 sales nearly 43 percent higher than December '08 sales. By county, here are the existing single-family home and condo sales volume increases in December '09 as compared to December '08:

Lake County: 21.5 percent increase of condo and single-family home sales in December '09 as compared to December '08.
DuPage County: 19.1 percent increase in December '09 as compared to December '08.
Kane County: 31.6 percent increase from December '09 as compared to '08.
McHenry County: 46.3 percent increase from December '09 as compared to '08.
Will County: 18.8 percent increase from December '09 as compared to '08.
Grundy County: 12 percent increase from December '09 as compared to '08.
Kendall County: 9.3 percent increase from December '09 as compared to '08.
DeKalb County: The only county to not see an increase; just 15 homes sold in December '09 as compared to 56 in '08.

Impact of First-Time Home Buyer Tax Credit Extension

Many real estate experts had believed that December '09 sales would have been less than the year prior due to the amount of those attempting to take advantage of the first-time home buyer tax credit. The credit deadline was originally November 30 before it was pushed back to the spring. Its extension has cleared the way for the possibility that sales of existing Chicago condos and single-family homes could continue to be on the upswing through the first quarter in 2010.

Rural Development Mortgage Guidelines Allow For 100 Percent Financing Loans

Few people are aware that Rural Development Mortgages provide government guaranteed financing for 100% loan to value for home mortgages. With a Rural Development Mortgage, there is no recapture because it is not a subsidy loan.

There are many benefits to Rural Development Mortgages that include 100% LTV based on the appraised value of your home, zero down payment, and low 30 year fixed mortgage rates. USDA's Rural Development guidelines provide flexible credit guarantees and require no mortgage insurance.

It is recommended that real estate agents and for sale by owners should use this 100% rural development mortgage in their advertising. If more people were aware of this government program, real estate sales would increase substantially. Not every home or buyer will quality for a rural development mortgage loan, but if they do they are getting one of the top mortgages with low interest rates on the market today.

Rural Housing Service (RHS) was created in 1994 as a result of the Department of Agriculture Reorganization Act to meet housing and community development needs.

More rural families and individuals are now able to become homeowners with the help of the Rural Housing Service Programs. There are various programs available to aid low-to-moderate income rural results to purchase, construct or repair a home. Rural development mortgages allow qualified homebuyers the opportunity to get loans with minimal closing costs and no down payment.

Section 502 Rural Housing Guaranteed Loan Program states that a loan guarantee through RHS means that, should the borrower default on the loan, RHS will pay the private financier for the loan. The rural development loan program's purpose is to enable loan and moderate income rural residents to acquire modestly priced housing for the own use as a primary residence. There is also a program available to purchase and repair an existing or newly constructed home.

The Section 503 Single Family Housing Direct Loan Program states that individuals or families receive direct financial assistance from the Rural Housing Service in the form of an affordable interest rate home loan. Loans are typically made for 30-33 years and eligibility is based on the family's income.

Real Estate Settlement Costs Explained

Let's discuss the settlement services which you may be required to get and pay for and which are itemized in Section L of the HUD-1 Settlement Statement. You also will find a sample of the HUD-1 form to help you to understand the settlement transaction.

When shopping for settlement services, you can use this section as a guide, noting on it the possible services required by various lenders and the different fees quoted by service providers. Settlement costs can increase the cost of your loan, so compare carefully.

700. Sales/Broker's Commission: This is the total dollar amount of the real estate broker's sales commission, which is usually paid by the seller. This commission is typically a percentage of the selling price of the home.

800. Items Payable in Connection with Loan: These are the fees that lenders charge to process, approve and make the mortgage loan.

801. Loan Origination: This fee is usually known as a loan origination fee but sometimes is called a "point" or "points." It covers the lender's administrative costs in processing the loan. Often expressed as a percentage of the loan, the fee will vary among lenders. Generally, the buyer pays the fee, unless otherwise negotiated.

802. Loan Discount: Also often called "points" or "discount points," a loan discount is a one-time charge imposed by the lender or broker to lower the rate at which the lender or broker would otherwise offer the loan to you. Each "point" is equal to one percent of the mortgage amount. For example, if a lender charges two points on a $80,000 loan this amounts to a charge of $1,600.

803. Appraisal Fee: This charge pays for an appraisal report made by an appraiser.

804. Credit Report Fee: This fee covers the cost of a credit report, which shows your credit history. The lender uses the information in a credit report to help decide whether or not to
approve your loan and how much money to lend you.

805. Lender's Inspection Fee: This charge covers inspections, often of newly constructed housing, made by employees of your lender or by an outside inspector. (Pest or other inspections made by companies other than the lender are discussed in line 1302.)

806. Mortgage Insurance Application Fee: This fee covers the processing of an application for mortgage insurance.

807. Assumption Fee: This is a fee which is charged when a buyer "assumes" or takes over the duty to pay the seller's existing mortgage loan.

808. Mortgage Broker Fee: Fees paid to mortgage brokers would be listed here. A CLO fee would also be listed here.

900. Items Required by Lender to Be Paid in Advance: You may be required to prepay certain items at the time of settlement, such as accrued interest, mortgage insurance premiums and hazard insurance premiums.

901. Interest: Lenders usually require borrowers to pay the interest that accrues from the date of settlement to the first monthly payment.
902. Mortgage Insurance Premium: The lender may require you to pay your first year's mortgage insurance premium or a lump sum premium that covers the life of the loan, in advance, at the settlement.

903. Hazard Insurance Premium: Hazard insurance protects you and the lender against loss due to fire, windstorm, and natural hazards. Lenders often require the borrower to bring to the settlement a paid-up first year's policy or to pay for the first year's premium at settlement.
904. Flood Insurance: If the lender requires flood insurance, it is usually listed here.

1000 - 1008. Escrow Account Deposits: These lines identify the payment of taxes and/or insurance and other items that must be made at settlement to set up an escrow account. The lender is not allowed to collect more than a certain amount. The individual item deposits may overstate the amount that can be collected. The aggregate adjustment makes the correction in the amount on line 1008. It will be zero or a negative amount.

1100. Title Charges: Title charges may cover a variety of services performed by title companies and others. Your particular settlement may not include all of the items below or may include others not listed.

1101. Settlement or Closing Fee: This fee is paid to the settlement agent or escrow holder. Responsibility for payment of this fee should be negotiated between the seller and the buyer.

1102-1104. Abstract of Title Search, Title Examination, Title Insurance Binder: The charges on these lines cover the costs of the title search and examination.

1105. Document Preparation: This is a separate fee that some lenders or title companies charge to cover their costs of preparation of final legal papers, such as a mortgage, deed of trust, note or deed.

1106. Notary Fee: This fee is charged for the cost of having a person who is licensed as a notary public swear to the fact that the persons named in the documents did, in fact, sign them.

1107. Attorney's Fees: You may be required to pay for legal services provided to the lender, such as an examination of the title binder. Occasionally, the seller will agree in the agreement of sale to pay part of this fee. The cost of your attorney and/or the seller's attorney may also appear here. If an attorney's involvement is required by the lender, the fee will appear on this part of the form, or on lines 1111, 1112 or 1113.

1108. Title Insurance: The total cost of owner's and lender's title insurance is shown here.
1109. Lender's Title Insurance: The cost of the lender's policy is shown here.

1110. Owner's (Buyer's) Title Insurance: The cost of the owner's policy is shown here.

1200. Government Recording and Transfer Charges: These fees may be paid by you or by the seller, depending upon your agreement of sale with the seller. The buyer usually pays the fees for legally recording the new deed and mortgage (line 1201). Transfer taxes, which in some localities are collected whenever property changes hands or a mortgage loan is made, can be quite large and are set by state and/or local governments. City, county and/or state tax stamps may have to be purchased as well (lines 1202 and 1203).

1300. Additional Settlement Charges:

1301. Survey: The lender may require that a surveyor conduct a property survey. This is a protection to the buyer as well. Usually the buyer pays the surveyor's fee, but sometimes this may be paid by the seller.

1302. Pest and Other Inspections: This fee is to cover inspections for termites or other pest infestation of your home.

1303-1305. Lead-Based Paint Inspections: This fee is to cover inspections or evaluations for lead-based paint hazard risk assessments and may be on any blank line in the 1300 series.

1400. Total Settlement Charges: The sum of all fees in the borrower's column entitled "Paid from Borrower's Funds at Settlement" is placed here. This figure is then transferred to line 103 of Section J, "Settlement charges to borrower" in the Summary of Borrower's Transaction on page 1 of the HUD-1 Settlement Statement and added to the purchase price. The sum of all of the settlement fees paid by the seller are transferred to line 502 of Section K, Summary of Seller's Transaction on page 1 of the HUD-1 Settlement Statement.

Paid Outside Of Closing ("POC"): Some fees may be listed on the HUD-1 to the left of the borrower's column and marked "P.O.C." Fees such as those for credit reports and appraisals are usually paid by the borrower before closing/settlement. They are additional costs to you. Other fees such as those paid by the lender to a mortgage broker or other settlement service providers may be paid after closing/settlement. These fees are usually included in the interest rate or other settlement charge. They are not an additional cost to you.

First Time Home Buyers Can Be Approved For a Loan With Proper Planning

First time home buyers have many obstacles to overcome when purchasing their first home. Mortgage lending much like other lending is risk based and as such for a buyer to approach the application process uninformed could lead to a denial of credit. What are the factors that an underwriter looks for in approving a mortgage applicant? The short answer is "The four C's" of residential lending which are collateral, capacity, capital and character.

In looking at most first time home buyers and going methodically through "The four C's" of residential lending one wonders how a first time home buyer ever gets approved for a mortgage the first time. Let's look at each one see how it may affect the first time home buyer.

Collateral. In a first time home buyer purchase, there typically is not too much collateral. Sure, in mortgage lending there will be a lien on the home, however most first time home buyers are purchasing with little or nothing down. The purchase price of the home is the market value so the first time home buyer is putting up little collateral. As such, the lender has an increased risk in the transaction.

Capacity. This is the ability to repay the mortgage. The first step is to determine the debt to income ratio. The underwriter will take all monthly debts and divide them by the borrower's monthly income to determine what the debt to income ratio is. Also in determining the capacity, the underwriter will look at job history. Does the buyer hop from job to job or does the buyer stay put. A buyer who job hops may be a higher risk.

Capital. How much liquid assets does the borrower have? Stocks, bonds 401Ks, I.R.A.s, checking account balances and savings account balances all play a role in calculating the capital. The sum of these accounts is what is called reserves. Many times underwriters talk in terms of monthly reserves. Monthly reserves is referring the figure of taking the amount of reserves and dividing them by the monthly P.I.T.I. Six month reserves has become the standard in mortgage lending.

Character. One major factor in obtaining a mortgage loan is prior mortgage history. The first time home buyer is at a disadvantage here because there is no mortgage history. The next best thing to factor is rental history. The borrower's credit history is looked at extensively to determine character. Delinquencies, proportion of balance to limits on installment and revolving credit, judgments and collections and bankruptcies all are looked at to determine character of the debtor. Also, the number of trade lines as well as the length of time the borrower has had each trade line is a determining factor. After all of these items are taken into account, the underwriter will look at payment shock. Payment shock is a measurement of how much the household expenses are increasing with the purchase of the home. If it is too big of an increase, the underwriter may deny the applicant despite whether the debt to income ratio meets the guidelines.

Now, before you give up on your quest to be a first time home buyer, let me give you some good news. There are loan programs specifically designed for the first time home buyer and will be a bit more lenient with "The four C's" than usual. There have been cases where first time home buyers have been able to get better terms on a mortgage loan than many seasoned buyers with high credit scores and great marks with "The four C's."

The first step to being a first time home buyer is contacting a seasoned mortgage expert that is experienced with first time home buyers. With proper planning and the right choice of a mortgage expert you will be on your way to owning your first home.

Reviewing 2009 and attractive advanced to 2010

Armando Chacon of Century 21 SGR talks about the ups and downs of 2009 home sales from his perspective as a Realtor working in Chicago's West Loop. He also looks ahead to 2010 to talk about his expectations for 2010.

Urban active in burghal Wilmette, Part 1

If you're a confirmed urbanite you might be shocked by how closely parts of Wilmette mimic a city lifestyle. This new construction home at 225 10th St is 3 blocks to Evanston's Central Street (a walkable gem), 4 blocks to downtown Wilmette, 3 or 4 blocks away from two Metra stations and a 10-minute walk to the Linden El. Walker Bros Pancake House and Dominick's are almost across the street. Watch as Lyn Flannery of Coldwell Banker tells us more about the home and the urbanesque environment. This is the first part of a 2-part video.

Stonehouse Estate, Naperville, IL

This is a short video about the Stonehouse Estate, located in Naperville, Illinois. It is being offered for sale by Ory Realty, Inc., (630) 357-3635.

FBI Criminal Background Check - Government Background Check Done Online in 5 Minutes Or Less

Did you know that you can run an FBI criminal background check type search and get an online criminal background check done in less than 5 minutes? If the answer is no, then keep on reading because by the end of this short article, you will be armed with the same tools that cops and private detectives use to do instant checks on people.

The good thing about running a search online is that it is going to be fast and also that it won't matter where are you located. As you well know, public records, including criminal reports are store in local government offices or state repositories. So, if you are in Washington but need to search someone from Florida, then chances are you won't book a flight just for that. By doing it online you can access any person regardless of location.

Some of the information that you can get is:

Criminal history

Arrest records

Mug shots

Court documents

Birth records

Marriage records

Death records

Divorce records

Bankruptcy filings and many other government public records.

So, if you are in the position to hire people for a specific job in your company, running the search online is your best bet. This tool is also really useful for those who lease real estate properties as rentals because they can check people's backgrounds very fast and run an FBI criminal background check type search in no time, which in turn will help them chose the right candidate as a new tenant.

Real Estate Sales Career - What's it Like?

In real estate, as in other industries, there are many fields of specialization that may be of interest. This page however is about taking a career path in residential sales: in other words, what does the real estate agent do everyday?

Since the State of Illinois requires that every prospective agent take and pass a prelicense course (currently 45 hours) and then pass a State exam, the uninformed would believe they were prepared to sell a home. Not true of course, the process is not unlike taking driver's education and then the driver's test. The new agent is no more prepared to service a real estate client than the new driver is to handle rush hour in Chicago. Since in Illinois that you'll need to find a broker to sponsor you into the business, the choice of company should be made, to a large degree, on how much training you'll receive. There are other factors to consider, reputation of the broker (company), whether the company has National name recognition or is a small local operation, and market share, to name a few. While you don't want to make the wrong choice in the beginning, you are not locked into the broker with whom you begin. You can change if you've made a mistake. Probably the most important thing in selecting the broker is how you "feel" about the people you'll be working with and for.

What are the better brokers looking for in an agent? The State requires (generally) that you be at least 21, have a high school education or equivalent, and be of high moral character, the broker will look for general characteristics. While the born salesman may find a career in real estate, it seems to me that the agent we want to hire is one dedicated to making this his or her career, understands that it will be difficult in the beginning, is not overly introverted, and, above all, is a nice person.

So let's say you've picked your office and they've agreed to sponsor your license, what will you be doing, day to day, in this new career? For years and years the business has been one of meeting people and helping them find or sell a home. That won't change; it's just that the methods have changed. How successful you become, and how quickly, will depend on how many people you already know (sphere of influence), how active the market is, how well you adapt to the tasks of prospecting, and luck. The term "salesman" (or woman) does not really apply in our business. You will be much more successful acting as a caring consultant than you will trying to close a deal (think Glengary Glen Ross and if you haven't seen the movie you should rent it.)

During any given week you may do many or all of the following:

o Sit floor time (in essence field any calls or walk-ins seeking service)
o Broker Tour (new listings open for inspection to fellow agents)
o Sit an open house (open to the public, usually on a Sunday)
o Show homes
o Do listing presentations
o Prepare feature sheets and fliers
o Write contracts
o Negotiate with other agents on behalf of your client
o Attend home inspections
o Work with attorneys
o Work with lenders
o Attend closings (that's the best)
o Attend office meetings
o Call agents for feedback
o Stay in contact with current, prospective, and past clients
o Further your education or attend seminars
o ...and more.

Still, the most important thing you'll be doing is meeting people. Sitting open houses on the weekend is one way, farming a neighborhood used to be a popular method, direct mail and advertising is a possibility, floor time can be helpful, but it's using and increasing your sphere of influence that will provide the greatest return. There are a few trainers out there, Joe Stumpf and Brian Buffini to name two, who teach referral based marketing and I firmly believe they have the answer. If you take the people you already know (providing they don't duck when they hear your name) and add the people you are bound to meet in the business, simply let them know that, "anytime you or any of your friends have a real estate need or question, please don't hesitate to call me." But you can't just let them hear that once or twice, you need to contact them at least six times a year. You want these folks to think of you when anyone says they are considering a move. It may take a friendly phone call, and you don't have to ask them if they're considering a move, just to say, "Hi." It may be a birthday or Christmas card. It might be a visit or a personal note. The important thing is to be consistent and persistent, without being overbearing.

For the past ten years or more, the real estate business has been more and more centered on the internet. Probably greater than 80% of all buyers have looked at homes on the web and many have already chosen the home they'd like to see. It becomes very important that the company you associate with and you as an agent have a strong internet presence. The terms VOW (virtual office web site) and IDX (internet data exchange) have become commonplace. The importance to you, the agent, is that you need to have your name on a listing or associated with a site when prospects are searching for property. There are dozens of really great sites out there, but if you can direct prospects to use your site and it does the job, you will capture a percentage of them. Do not get into this business and ignore today's marketing hottest tool.

There's the old saying about real estate, "Location, location, location." The same is true for real estate salespeople, but it's, "Prospecting, prospecting, prospecting." If you can spend at least some of each day trying to meet new potential customers, you are destined to become successful.

Geneva, IL Real Estate for Sale - 0n315 Armstrong Lane - The Cadwallader Group

Geneva, IL Real Estate for Sale - 0n315 Armstrong Lane - The Cadwallader Group, CBRB STC, NRT,LLC, EHO For More Information, Visit www.TheCadwalladerGroup.com

Real Estate Client Representation in Illinois

For years and years ("good ole days") buying a home through a real estate agent was similar to going to Sears to buy a stove: you were not legally represented by the agent with whom you were working. Since the Seller usually paid the commission and the listing broker shared that commission with the selling broker, the buyer's "agent" was in fact a subagent of the Seller. In the 90's a class action law suit (dual agency) involving one of the largest brokerage firms in the country resulted in a settlement rumored to be a bunch of money. Agency immediately became of great interest and concern for both real estate companies looking to avoid similar problems and state governments.

Today all states have laws defining real estate agency: buyer agency, seller agency, and dual agency, although some still allow for "facilitators," where no agency has been established. Agency laws define the relationship between the agent and his client, or principle, and the duties of each. Illinois has, by statute, established the duties of the agent to the clients: care, obedience, accounting, loyalty, confidentiality, and disclosure (remember the Boy Scout oath?). The simple rule is that, excepting unlawful demands, the client's interest must be placed above the agent's interest. The client would be obligated to treat the agent honestly, cooperate toward fulfilling the goal for which the agency was formed, and to compensate the agent as agreed.

Establishing agency requires competent parties, a lawful purpose, and agreement between the parties. An agency can be express (written or oral, but written is pretty important) or implied (by words or actions) and once established must be taken very seriously. Obviously if an agent has discussed the job, duties, objectives, compensation, etc. with a prospective client or customer, and they have agreed to work together, an agency relationship has been created. Some acts can be performed without creating an agency: things like answering questions without giving advice. Just answering questions about a home, for instance at an open house, is considered "ministerial" and does not create agency: the other party is considered a consumer: a potential client. A problem can arise if the agent begins to give the consumer advice or moves beyond providing information about a specific home. The Illinois law says, "Licensees shall be considered to be representing the consumer they are working with ...," so an unintended agency relationship may be created.

While most agents will represent either a buyer or seller in a transaction, Illinois license law allows Dual Agency in which the same agent "represents" both buyer and seller. As an example, if an agent had a listed property (a seller client) and a buyer for whom the listing seemed perfect, with the informed written consent of both clients, the agent could show and perhaps negotiate a contract between his/her two clients. It's difficult to understand the term Dual Agency in this transaction: by definition, agency demands working in the best interest of the client and the two clients have opposing interests (purchase price). The agent in this case more intermediates than advocates. The potential for claims of unfair representation are much greater in this type of transaction and utmost care must be taken to insure that both parties are fully informed and agree before any showing takes place. (Undisclosed dual agency is the basis for the law suit mentioned in the first paragraph.) While most agents would like to receive both ends of the commission, it is probably safer from a legal perspective and certainly better service to the client, to avoid dual agency. Illinois uses the "designated agent" approach to allow a Broker to appoint one agent to represent a Seller and another to represent a Buyer in the same transaction without creating a dual agency within the same brokerage.

When beginning to work with a client, get the relationship in writing (if at all possible). It is mandatory for a listing, but sometimes buyers are reticent to sign agency agreements. That may be because the agreement is not properly explained. The Illinois buyer agency forms are pretty non-threatening if explained correctly. Always disclose your position and any information (other than confidential) you have about the property or the agency relationship. If a potential buyer at an open house expresses interest in the property, for example, make certain to disclose that you represent the Seller and that the "buyer" should not rely on your assistance for other than ministerial acts.

Disclosure, agreements in writing, and making sure the client's interest always comes first are the main points, but training and study of agency law is extremely important.
The State of Texas, for instance, requires 30 hours of Agency in its pre-license course.
Illinois includes it in core curriculum for continuing education. The Illinois License Act of 2000 (Article 15) lays it out in detail and can be found most easily at http://law.justia.com/illinois/codes/chapter24/23835.html (it took me quite a while to find it at the State of Illinois General Assembly site and the URL runs off the page).

Southest Rangers escorted the burial of Col. (Ret.) Ralph D. "Hoot" Gibson 01-09-2009

Southwest Rangers escorted the funeral of Col.(Ret.) Ralph D. "Hoot" Gibson Col. (Ret.) Ralph D. "Hoot" Gibson Ralph D. "Hoot" Gibson was born in Keensburg, Illinois and raised in nearby Mt. Carmel. His military career began in 1943 when he joined the US Air Corps. During his 31 years as a fighter pilot, he served in the occupation of Japan after WWII; in the Korean War, where he became the world's third jet ace; and in Vietnam. Other assignments included two tours in Germany and a tour as Leader of the USAF Thunderbird Air Demonstration Team. Hoot retired from the Air Force in 1974 and came to Tucson to begin a second career in real estate. As broker of Hoot Gibson Realty and his own best sales agent, he sold hundreds of properties and touched thousands of lives in Tucson and southern Arizona. Hoot was an energetic member of the Tucson community. In addition to realty-related organizations, he was active in Kiwanis, the Business Association of Tucson, Caballeros del Sol, Executives International, and SAHBA as well as several military-related organizations: the Air Force Assoc., Daedalians, Fighter Aces Assoc., Thunderbird Alumni Assoc., River Rats, Sabre Pilots, Super Sabre Society, QB's, and the Pima Air Museum. In recent years he was inducted into the Illinois Military Aviation Hall of Fame and the Arizona Aviation Hall of Fame. Among the decorations Hoot earned in the Air Force were two Silver Stars, two Legions of Merit, four Distinguished Flying Crosses, Bronze Star ...

Real Estate Short Sales - Basics

In these tough economic times, many people consider getting involved in a short sale of real property. However, most do not understand what it takes to close short on a piece of property. The term "short sale" for real estate means that the sale proceeds are less than the balance of the mortgage or mortgages for that real estate. It takes a lot of time and effort to accomplish a successful short sale. Cooperation and hard work is needed. The seller and lender are both in tough positions. The seller can no longer afford their home and can not pay the mortgage. The lender has no desire to take the home or go through costly foreclosure proceedings.

The seller has to start the ball rolling by finding the right department and person within their lender to assist in this process. It takes many phone calls and letters to get a person with authority from the lender. Also, do not make the mistake of trying to go through the lenders mortgage work out department if you really just need to get out of the property and mortgage.

The seller has to provide the lender with many documents before lenders even consider the option of a short sale. Some of these documents include: (1) preliminary net sheet, (2) hardship letter, (3) proof of income and assets, (4) copies of bank statements, (5) comparative market analysis, and (6) letter of authorization.

The seller should contact a real estate agent, accountant and attorney. Many agents will reduce their commission amount on a listing that needs to sell short. Accountants can explain and go over the tax ramifications (which vary for each individual). Attorneys can help negotiate with the lender and buyer, determine if the loan qualifies for a deficiency judgment, work within foreclosure proceeding, and close the transaction.

Be aware that the lender is not in a hurry to agree to a short sale. The lender will take as much time as it wants and will periodically ask for more information. Lenders will only agree to a short sale if it makes financial sense. The buyer has to have a lot of patience, be willing to cooperate with the lender and, most importantly, have the money to purchase the real property.