"You've Caught the NET!"

I read Amy Le's Homescape Blog yesterday, and was distressed to hear the same old mortgage scam continues unabated.

California Authorities have indicted Charles Head, of Los Angeles, of defrauding over 100 homeowners, and raking in $12 Million in loan proceeds in this familiar scheme.  The same scenario has played itself out across the country over the years - including here in Chicago - but the shear volume of new foreclosures, loan resets, and borrowers in over their head in debt makes the scam even harder to stomach. 

He and his "investors" would prey on those who have fallen behind in their mortgage payments.  Such homeowners are readily available in public record across the country - their names, addresses, lenders, and loan balances.   The "investors" would promise reasonable rent, immediate payment of back mortgage payments and credit card debt, and the opportunity for the homeowner to buy back his property after a stated period of time, if their situation improved.

In return, they asked to be added to title on the homeowner's property, in most areas using a Quit Claim Deed.  Unknown to the homeowners, however, these "investors" were really straw buyers.  Working together with unscrupulous mortgage brokers, they took out a Home Equity Line of Credit against the full, newly-appraised value of the home.  They never paid the original note - leaving the true owners in foreclosure within a few months, and subsequent eviction.

The "investors" ran off!

Head's alleged scammers used mass email and broadcast faxes to target homeowners in distress.  They recruited "investors" online.  As you may know, homeowners facing foreclosure receive a flood of solicitations from those ranging from ordinary real estate investors, to legitimate Real Estate Practitioners looking to help, to unethical practitioners hoping to take advantage of misfortune.

Dean's Team ran into a similar situation with a very religious, elderly woman in the Edgewater Neighborhood of Chicago about a year ago.   The scheme was far smaller in size, but equally as painful to the victim.

Trusting the "lawyer" of an acquaintance, our client signed a Quit Claim Deed to add the supposed benefactor to title.  He promised to pay her back mortgage payments, as her home was about to be foreclosed upon.  He offered free rent to the woman for six months, and the option of buying the home back, for reasonable, stated cost, at the end of period.

Our homeowner never got the chance to get her home back.   The scam artist drew out the largest equity loan he could get approved for, never made a payment on the original mortgage, and left.  The elderly lady faced foreclosure, then eviction, way before the six-month "rental term" expired.

In this new, tougher lending climate, such a scam might be harder to complete.  Unfortunately, however - the bad guys are very clever, and will attempt new schemes, I am sure.

Please see our post today at BlogChicagoHomes.comfor more info, as well as a link to Amy's Blog, via a link in today's Chicago Tribune online.

DEAN & DEAN'S TEAM CHICAGO

Are you celebrating, or have you celebrated, Earth Hour, tonight at 8 o'clock?

To support efforts to reduce Greenhouse Gases, and their possible effect on Global Warming, The World Wildlife Fund is sponsoring the awareness campaign all over the world tonight.  Between 8 and 9 PM, all many private and public buildings will go dark in support.

Most McDonald's Restaurants plan to participate.  Many well-known buildings, and government complexes, as wll as hundreds of private businesses, will get involved.

Here in Chicago, the famous Sears Tower and John Hancock Buildings will darken at 8 for an hour.  So will the Merchandise Mart - its 4.3 Million Gross Square Commercial Feet still make it the world's most spacious commercial building.

Marquee lights in the Chicago Loop Theatre District will go dark to participate, as will the iconic Navy Pier Ferris Wheel, and famous Chicago Water Tower.  Even the Statue of Michael Jordan, in front of the United Center, where the Chicago Bulls play their home games, will dim in support this evening.

Anything you or your family are doing in support.  Perhaps throwing around a glowing Frisbee, as students are planning tonight at the Illinois Institute of Technology?  Or, a "dinner by flashlight?"

Perhaps even a little extra romance - lighting barely needed here!

If you're using anything with a flame, however, be careful.  It's pretty windy outside tonight - and you know what happened here in 1871, at the alleged instigation of Mrs. O'Leary's cow.

Enjoy, with reflection!

Please see our post tonight at BlogChicagoHomes.com,and see links to the full story of Earth Hour, 2008 in today's Chicago Tribune, in an article by Susan Kuczka.

DEAN & DEAN'S TEAM CHICAGO

Hope you're enjoying the weekend, folks! 

Here in Chicago, our Cubs won the last game of Spring Training versus the Seattle Mariners, played in Las Vegas this afternoon.  Now, it's on to Wrigley Field, on a predicted-to-be-mild Opening Day this Monday.

This could be their year!   Well . . . we'll see!  (It's been 100 years since the our last WS Victory, you know.)

This morning, on our Team's weekly Objection Handling Technique Conference Call, Jeff, Kathy, Sue and I were brainstorming a better way to get testimonials.  Let me know your thoughts on this.

Historically, we have asked for written testimonials at or after the closing.  We currently provide a questionnaire asking for comments, with a few specific categories as "idea starters" for our happy clients.  We get about a 50% response rate, after the initial mailing and two follow-up mailings.

A few prospective clients ask us for written references.  At their leisure, they contact our clients, and question them about our service.  They usually respond with very favorable remarks.

Printed comments are always going to be completely positive, and so are received phone calls.  We're not fooling anyone here - you're not going to post negative comments on your website, or give them the phone number of a less-than-happy current client.

Here's a new way - and we already tried it today - with success!

Ask your satisfied current clients if they wouldn't mind CALLING YOUR PROSPECTIVE CLIENTS FIRST - of course, after you get permission from the new folks you are speaking with about working with you!

Imagine - your clients contact the newbies, explaining your difference versus others in Real Estate, and strongly advocating you over the competition.  Even if your current clients get a voice mail message, this message is a powerful "commercial" when checked by the new prospect.

To keep your current clients accountable to making the call - also get their permission to provide their own daytime phone number to the new prospective clients.  Mention you will ask the prospects to call them if they don't hear from you in a day or so.  Faced with this, most current clients will call quickly and enthusiastically.

First time out, we got enthusiastic agreement from the loyal existing client.    He called the prospect right away (probably, so we wouldn't forget to do so), and had a brief, but detailed, phone conversation with him.  Then, the prospective client called us - saying he was quite impressed with the proactive, rave review.   He wants to set a time to award us his listing!

Of course, scripts have to be tweaked - but what are your thoughts on this new way to get testimonials, with more ummph, more power?

Please share your take!

And, thanks, Dean's Team Chicago Team Members Jeff Ardito, Kathleen Weaver-Zech, and my wife Sue Moss for helping brainstorm and fish-bone this new, powerful idea!

DEAN & DEAN'S TEAM CHICAGO

Great debate and no shortage of proposals on what to deal with the Mortgage Crisis.  It's sure to become an even hotter topic as the General Election draws near in November.

While Senators Clinton, Obama, and McCain unveil their plans, and ratchet up their accompanying rhetoric, the White House, Congressional Democrats, and HUD are working on separate plans to help those homeowners that owe more to their lender than their home is worth in today's Real Estate Market.

In the olden days - say, 2005 - refinancing was easy, as appreciation was steady, year upon year, for many years.  With appreciation slowed to a crawl in many markets, and actually turning toward DEpreciation in several others, many, many homeowners are negative.  The glut of high-leverage mortgages, as well as resetting adjustable interest rates, only compound the problem.

According to FHA underwriting guidelines, however, in order to re-fi into a new FHA-backed loan, a borrower can have no late payments over the past six months of their current loan - FHA or Conventional.  HUD, under the support of President Bush,  is looking to make this rule more lenient - as long as the potential refinanced homeowner qualifies in other ways.

Stay tuned for further tweaking from a number of fronts!

Separately, in a proposal potentially affecting hundreds of homeowners across Chicago and throughout Illinois, Governor Rod Blagovejich has backed legislation giving delinquent homeowners a 60-day reprieve before foreclosure action can be initiated.  

The Governor's proposal includes 30 days of mortgage counseling, plus an additional 30 day workout period where it would be hoped the homeowner could either re-finance his loan, or work out a satisfactory forbearance arrangement with his lender.

Our post today via BlogChicagoHomes.com covers both proposals.

DEAN & DEAN'S TEAM CHICAGO

THE CHICAGO IL REAL ESTATE MARKET, AND OTHER THINGS CHICAGO, FROM THE POINT OF VIEW OF A LITTLE WHITE DOG!

Here I am just lying around on our Living Room Floor, while my Human Daddy, Team Leader Dean, is out shoveling snow again.  Dean was a little mad - this is the 43rd day of accumulating snow this winter in Chicago - the worst for snow days in over 25 years!  He, Mom, and me - we're all getting pretty tired of all this white stuff - wish it were spring, already!

Come on, folks - visit us in Chicago (after the snow melts, of course!)  Drinks are on me!

And you know my favorite drink?  (No, it's not that imported Tequila with the worm in the bottle).  It's Chicago Tap Water!  You know, good ole' "Michigan Straight - Directly from the Waters of Lake Michigan."

Come on over to my place, and I will share with you from my Lil' Blue Dish.  It's cool!  It's refreshing!  And it's one of the purist, best-tasting drinking waters of any big city in the U.S. - perhaps the world! (See a recent survey from the NRDC on Chicago Water Quality).

You know, the drinking of bottled water here is only about a 20-year-old habit here across the U.S. - perhaps less in Chicago, where, years ago, only the shi-shi Evian set paid a buck and a half for a bottle of H20.  This year, water in a bottle has been made more expensive in the City of Chicago - the city imposed a 5-cent-per-bottle tax on bottled water effective the beginning of this year.

Even before bottled water became popular, however, most folks here in Chicago drank most of their water straight out of the tap (or in a glass, of course, sometimes over ice).  Unlike other cities, and some Chicago suburbs without Lake Michigan as their water source, few Chicagoans drank purified or spring water in those big, five-gallon, water cooler-sized bottles, paying money for what we are fortunate enough to get for free didn't make much sense.

Well, Chicago Tap Water is making a comeback!  One local Northside Restaurant, The Balanced Kitchen, on McCormick Boulevard, in the West Rogers Park Neighborhood, is eliminating bottled water from its menu.  Only pure, free, and more environmentally-friendly tap water is now available to drink at this establishment.

Earlier this week, The Balanced Kitchen sponsored a Water Tasting, pitting our Michigan Straight against such national heavy-weight water brands as Dasani, Aquafina, and Ice Mountain.  CHICAGO TAP WATER WON- for best taste, lack of odor, drink-ability - and whatever other characteristics define good water.

There are a few other restaurants here removing bottled water from their menus, out of concern for cost, as well as friendliness to the environment (those plastic bottles fill a lot of landfill space).  According to a posting by Monica Eng, in The Stew, Chicago's Blog on our Food, Wine, and Dining Scene, three such eateries include Clarke's Diner, just south of Wrigley Field in the Lakeview Neighborhood, The Heartland Cafe in the Rogers Park Neighborhood, and Ina's, in the West Loop.

See my Lil' Buddy's Blog Post today at BlogChicagoHomes.com for more.

Wanna buy me a drink?  Hey, you dogs - save your biscuits!  Fill my bowl from the tap!

But you stay away from my food dish!

BTW - How does tap water taste in YOUR town?  Would you drink it, let alone share it with your dog?  Let me know!

YOUR ACE REPORTER ON FOUR PAWS,

BUDDY HOLLY MOSS & DEAN'S TEAM CHICAGO

Good Evening, Gang!

Need your help here, because I'm feeling very old, very dumb, or perhaps a combination of the two.

Last November, at an Annual Business Coaching Conference with our Coach, Patti Kouri, of Woodland Hills CA, her and her speakers espoused the great value of Social Networking. "Rewards, contacts, and new friends beyond belief," several said.

Nearly five months later, however, I fail to see the benefit!

I joined Facebook, and LinkedIn.  I got involved with a bunch of groups on each.  I've traded emails, Drinks, Beers, Fun Wall Greetings, Hugs, Kisses, and . . . my wife still doesn't know what this really means . . . Pokes!  But business value - practically nada, aside from keeping in touch with a lot of my buds in a novel way.

As a small business person, as we all are, I want to use my time most effectively.  I will invest the time if it means eventual - not necessarily immediate - payout.  AR Blogging pays out.  Our Team Blog - BlogChicagoHomes.com - pays out.  Prospecting, old-fashioned networking, great service to our clients and prospective clients - pays out.

But Social Networking - not yet!  (Although, I am still getting Beers, Margaritas, Hugs, and a few Pokes on a daily basis).

Any clues here for this ole' Boomer (50 IS the new 30, you know).  Perhaps I just don't get it.

Please, guys - enlighten me!  Or, at least, point me in the right direction.

Just Frustrated in Chicago,

DEAN & DEAN'S TEAM CHICAGO

Our Town, Chicago, was not affected as much by real estate speculation, and the resulting huge quantum leaps in property values, as some other major markets were - Las Vegas, Phoenix, Miami, and parts of California.  Although Chicago is going through a bit of price retrenching of it's own now, recent numbers from The National Association of Realtors provide a bit of hope.

Please first see our BlogChicagoHomes.com post from yesterday, March 24th, talking about the February versus January, 2008 2.9% Unit Sales Gain across the U.S.  This was the first monthly unit-sales gain since last July. 

Despite the favorable February numbers, the number of single family home and condo units sold nationally dipped 24% between February, 2007 and February of this year.  The Median Sales Price of these homes dropped a historic 8.2% during the same period!

Across the State of Illinois, however, unit sales grew 15.1%, month-to-month, in February.  The Median Home Price in Illinois fell 5.6% for the annual period ending February 29, 2008 - to $181,265.

In the Chicago Metro Area, including the city and all suburbs, the Median Home Price actually GAINED year to year, ever so slightly, to $240,230 at the end of February, 2008, from an even $240,000 a year before.  In the City of Chicago, the Median Condo Price climbed 10.5%, to $314,900, although there continue to be wide price variances for condos in different neighborhoods in the city.

Average 30-year fixed mortgage rates fell to 5.75% in January, and jumped a bit to a 5.99% average at the end of February.  Last year, same time - rates averaged 6.25%.  Moderate rates are not the problem here, however - more stringent underwriting requirements now keep many from buying homes and condos today.  Many of these borrowers would have qualified a year or so ago.

In all, Chicagoans face some measure of optimistic news, proving the somewhat stronger position here of our Real Estate Market compared to other U.S. Metro Areas.

Today's BlogChicagoHomes.com post further discusses City of Chicago, Chicago Metro Area, and State of Illinois market trends over the last 12 months.

DEAN & DEAN'S TEAM CHICAGO

Hey, everyone!

If you've been in Real Estate for a while, you've most likely encountered lenders who select appraisers to value property.  Although they were never supposed to, I'm sure they had an "understanding" with the appraisers they selected that the property would appraise out for the purchase price - no less!  Here in Chicago, I've seen this happen, more than once, over a decade and a half in the real estate business.

Many "in the know" feel rampant over-valuation within the last few years may have been a key contributing factor to widespread loan delinquencies we are experiencing today, and, perhaps, some current over-compensation, on the low side, with today's property valuations.  As recently as a couple of years ago, even more recently, properties appraised high, risky loans were routinely approved, and low initial mortgage payments made by borrowers.

Fast forward to 2008!

Concerned about irregularities on some Washington Mutual mortgage loans made for borrowers in his state,New York Attorney General Andrew Cuomo began negotiating stiffer appraiser standards of practice with The Office of Federal Housing Enterprise Oversight, with the goal of creating more stringent rules of property evaluation.  He used a 1921 New York State securities fraud statute as the basis for his initial investigation.

As part of the settlement in this case, Fannie Mae and Freddie Mac have adopted, and are in the process of implementing, tough new rules governing lenders and appraisers.  Unless challenged, these new, tighter appraisal standards will go into effect in January, 2009.

The rules affect how appraisers providing property valuations interact with lenders.  Some key provisions -

• Without a signed statement that the appraiser was not coerced, pressured, or influenced during the appraisal process, lenders will no longer be able to fund a mortgage loan. 
• A new, more detailed coder for interaction between lenders and appraisers.
• A National Hotline for appraisers and consumers would be established, if either felt the valuation decision was being influenced by the lender.
• Mortgage Lenders with in-house appraisers or owned appraisal firms will not be able to use these in-house valuations if they plan to sell their loans in the secondary mortgage market.
• Independent Mortgage Brokers will not be able to order appraisals used by end lenders.
• An Independent Valuation Protection Institute will monitor appraisals.  They will have the power to mediate complaints of influenced valuation.  They can also report suspected violators to state and federal authorities.

Although many in the mortgage industry, including the trade group representing Mortgage Brokers, feel many provisions in the law need work, virtually all agree that tighter regulation of the home valuation industry will soon become reality.

That said, it seems, the feeling, "Of course, the property will appraise!" may not be said with that old-fashioned confidence very soon.

Please see our post today at BlogChicagoHomes.com, along with the link to Kenneth R. Harney's article in the March 16th edition of the Chicago Tribune, for more info. 

Be careful, folks!

DEAN & DEAN'S TEAM CHICAGO

Good Afternoon, Everyone!

By now, you must have heard or read National Association of Realtors Chief Economist Lawrence Yun, and his comments on the increase in the sale of Existing Homes for February, 2008.  Revised NAR statistics show a 2.9% increase in units sold during February.  The last time unit sales increased, it was about 90 degrees outside, and we were cooking steaks on the BBQ - July, 2007.

Indeed, prices have dropped a historic 8.2% in the year ending February, 2008.  One year ago, the Median U.S. Home sold for $213,500.  Today, that same home would cost $195,900.  Units sold dropped 24 percent year-over-year, between February, 2007 and February, 2008.

The Million Dollar Question, however - Have prices fallen enough to increase buyer demand?  Or, are there still thousands of fence sitters waiting for prices to fall even further? (My bet, knowing human nature - we still have a lot of fence sitters!)

Tightened underwriting standards have pushed thousands of prospective homebuyers with questionable credit off the playing field.  Average mortgage rates, although near historically-low levels, will not be offered to these marginal prospective buyers.

However, U.S. Homes for Sale Inventories, in aggregate, fell 3.0% during February, to an average supply of 9.6 months, down from a 10.2 month supply average a month earlier.

Although there is a long way to go before demand-supply balance is close, at least these recent numbers are somewhat encouraging, and provide needed variety in a long line of bad news in the housing sector.

Chicago Metro Area Sales Figures are not yet available from NAR.

Please review our comments and thoughts in our posting today via BlogChicagoHomes.com.  You will also find links to Jeff Bater's story, and relevant Lawrence Yun video, in today's Wall Street Journal.

DEAN & DEAN'S TEAM CHICAGO

Good Afternoon, folks!

Here's the latest Stat Summary on the Chicago Real Estate Market, based on data pulled Easter Evening, March 23, 2008 -

Properties Pending Sale showed a decline this week, while Average Sale Price increased, as did total Sales Volume.  This might indicate slight market pickup, if the trend continues, as right-priced, well-presented properties might sell.  Average Days on Market dropped about 10% last week.  The question here - will this positive trend continue as the weather warms this spring?

Sold Units washed last week's gains..  Expired Listings showed a considerable increase - let's see if this continues as the end of March approaches. Sales Volume up considerably, in tandem with the Average Sales Price, despite the decrease in number of Sold Units. 

Absorption Rate and Percentage of Sale Within Six Month (180 Days) remain high, although there was another  drop - by 1.9% - in the three-month rate versus the week ending March 13th.  The chances of selling a home within a normal six-month marketing time frame improved a little last week.  Statistically, home sellers in this North and Northwest Side of Chicago Benchmark area stays slightly better than a 1 in 5 chance of selling their home within a normal 6-month marketing time frame.

Communities and clients we serve reside, or plan to reside, in the Chicago Neighborhoods of The Chicago Loop, The Gold Coast, River North, Lincoln Park, Lakeview, Uptown, Edgewater, North Center, Lincoln Square, Albany Park, Ravenswood, Wicker Park, and Bucktown. 

Also, these Great Chicago Neighborhoods: Logan Square, Rogers Park , West Ridge, Portage Park, Jefferson Park, Norwood Park, Sauganash, Edgebrook, and Edison Park.   Plus All Chicago Suburbs. 

SINGLE FAMILY, CONDOS, AND SMALL MULTI-UNIT PROPERTIES - NORTH SIDE OF CHICAGO, NORTH OF ADDISON STREET, WEST OF ASHLAND AVENUE

                             ACTV LISTINGS        JUST SOLD         CLOSED        EXPIRED

Please visit and review our Chicago IL Real Estate Stats Pack Archive via our Team Blog Center - BlogChicagoHomes.com. 

Have any questions on any Chicago Neighborhood or nearby Chicago Suburb?  Call or write and let us know!

(EDITOR'S NOTE:  Sorry about the delay on these Chicago Stats today - had difficult getting on AR for my usual Monday morning post!  Was it me, or was AR Server on the fritz?)

DEAN & DEAN'S TEAM CHICAGO