Schaumburg Illinois and Suburbs Real Estate Blog

Give me a break, Ms. Kiviat!

In the just released September 6th issue of Time Magazine, the cover story by staff writer Barbara Kiviat proposes that owning a home may no longer make sense. I think a lot of folks across the country will disagree heartily with that premise. In the article, Ms. Kiviat seems to assert that America's home ownership "fetish" (her word, really!) is responsible not only for the dire financial straits in which many citizens currently find themselves, but also for high unemployment and our nation's excessive energy requirements. She also attempts to link home ownership to the federal deficit by asserting that the mortgage interest deduction accorded to homeowners costs the treasury billions of dollars per year. (I suppose the thousands of breaks granted to the wealthiest among us in the bloated tax code don't take away one nickel from the government's coffers.)

Before we all burn our bungalows, I think we should ask the great thinkers at Time to get real. This long cherished American tradition is not suddenly the toxic root of all society's ills. Maybe it's just me, but I've always thought the desirability of owning one's own home was pretty self-evident. Kiviat's article makes some valid points about excess and greed, but let's not throw the baby out with the bathwater. The benefits of most things, when taken to excess, tend to be perverted. But, while there never has been a credible case made that homeownership is the universal panacea, or even that it is every citizen's entitlement, there is an impressive, well-established list of positive attributes that make it pretty clear that we are not crazy to want to own the place we live in.

Rather than trying to convince the nearly 68% of Americans who own their homes that they made a mistake, Ms. Kiviat should try to explain to us why even main stream news media like Time need to sensationalize and distort issues in order to sell magazines. Meanwhile, I think
I'm going to ask for a refund on this month's subscription.

Bob Dohn
Coldwell Banker Residential Brokerage
140-A S. Roselle Rd., Schaumburg, IL 60193
Direct phone:
847-301-3126
Web:
www.BobDohn.com

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HOST (History of Schaumburg Township)

For anyone interested in Schaumburg area history, Jane Rozek, Local History Librarian at Schaumburg Township Library (jrozek@stdl.org / 847-923-3331) moderates a very interesting blog titled HOST (History of Schaumburg Township). Every week Jan posts great stories and photos about Schaumburg Township's rich past, notices of upcoming events of historical interest, guest postings by the Hoffman Estates Village Historian, Pat Barch, and comments and notes from readers.

In addition, there are links to other historical sites of local community interest. I thoroughly enjoy reading this blog and thought you might, too. To visit or subscribe, just go to http://ourlocalhistory.wordpress.com/.

Enjoy! And please tell your friends and neighbors! The more readers and feedback, the better it is.

Bob Dohn
Coldwell Banker Residential Brokerage
140-A S. Roselle Rd., Schaumburg, IL 60193
Direct phone:
847-301-3126
Web:
www.BobDohn.com

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More Changes to Mortgage Underwriting

Changes in how real estate mortgage loans and closings are processed just keep coming. The latest lender mandate from Fannie Mae affects loan applications made after June 30, 2010. Realtors®, home buyers and homeowners who are refinancing should be aware of how the new rules may affect them.

Lenders will now be required to do a "soft" credit re-pull (soas not to affect the borrower's credit score) as well as a re-verification of employment, intent to occupy and social security validation, and to check the parties' names against a HUD/GSA "excluded party list." Negative findings in any of these areas could trigger the re-underwriting of the loan and a need for additional documentation. This, of course, could delay the closing or even cause it to be suspended. For example, any change in debt-to-income ratios of 2% or more (even less if the loan exceeds guidelines) will require a re-submission to underwriting.

Further, the discovery of any new debt delinquencies will mandate a complete credit re-pull and underwriting. If there are any new inquires shown from other creditors, it must be certified that these did not result in new debt. There are also specific requirements regarding business tax returns and cash flow analysis for borrowers who own more than 25% of their employing company, and full disclosure of child support and alimony obligations.

To protect against such issues delaying or suspending the closing, borrowers should be careful to provide complete disclosure when applying for a loan and should not apply for or incur additional debt prior to the closing. Changing jobs during the processing of a loan or prior to the closing could also be problematic. Any changes whatsoever should immediately be brought to the lender's attention.

It is expected that these policies will soon be adopted throughout the industry and will be a consideration in every mortgage loan. Borrowers should always remember that anything less than total honesty and full disclosure of factors affecting their financial qualifications could delay or suspend the closing, or, even worse, be construed as mortgage fraud.

Source: RISMedia's REAL ESTATE, August 2010, Important Changes to Mortgage Underwriting Could Affect Many Buyers, by Jim Dinkel and Ken Trepeta.

Bob Dohn
Coldwell Banker Residential Brokerage
140-A S. Roselle Rd., Schaumburg, IL 60193
Direct phone:
847-301-3126
Web:
www.BobDohn.com

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Coldwell Banker Residential Brokerage Market Share Dominance

According to closed sales market share statistics from Midwest Real Estate Data, LLC, the regional multiple listing service for the Chicago metropolitan area, Coldwell Banker Residential Brokerage increased its market share in the first half of 2010 vs. the same period in 2009. Coldwell Banker consistently maintains a dominant #1 position in the region with a market share more than double that of the next leading competitor and roughly equal to the combined market shares of the next three competitors.

Bob Dohn
Coldwell Banker Residential Brokerage
140-A S. Roselle Rd., Schaumburg, IL 60193
Direct phone:
847-301-3126
Web:
www.BobDohn.com

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On Marriage, Children & Parenting...

From the book Oxymoronica, a compilation by Dr. Mardy Grothe

"If married couples did not live together, happy marriages would be more frequent." - Friedrich Nietzsche

"I love children, especially when they cry, for then someone takes them away." - Nancy Mitford

"Babies are always more trouble than you thought--and more wonderful." - Charles Osgood

"Everybody knows how to raise children, except the people who have them." - P. J. O'Rourke

Bob Dohn
Coldwell Banker Residential Brokerage
140-A S. Roselle Rd., Schaumburg, IL 60193
Direct phone:
847-301-3126
Web:
www.BobDohn.com

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Restaurant Rant

Why is it that the dining rooms at so many of today's restaurants, including the finer ones, are acoustically designed to sound like Grand Central Station? To have a conversation with your fellow diners you almost have to shout. Perhaps this is a minority opinion, but I don't find a noisy environment, brimming with commotion, to be a pleasant dining atmosphere. It wouldn't seem that difficult to create a relaxed, intimate setting, even in a large dining room. All that is needed are the right acoustics, lower volume on the background music (a softer style of music would help, too), and a reasonable amount of space between tables. Is that too much to ask for a $40 -$60 per person average bill?

Oh, and by the way, while I'm venting about restaurants, how about trimming the portions just a little? The establishment could improve its margins, there'd be less waste, less obesity, and I might even have room for dessert, which would further enhance the restaurant's bottom. Am I nuts or what?

Bob Dohn
Coldwell Banker Residential Brokerage
140-A S. Roselle Rd., Schaumburg, IL 60193
Direct phone:
847-301-3126
Web:
www.BobDohn.com

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Real Estate is STILL a Great Long Term Investment

Mike Mandel, former Chief Economist at Business Week and current Senior Fellow at Wharton's Mack Center for Technological Innovation, said: "We've just had the biggest boom and bust in recent history. Nevertheless, real estate has still greatly outperformed the stock market over the past ten years."



Taken from The KCM Quick Report, July 27, 2010, published by Keeping Current Matters.

Bob Dohn
Coldwell Banker Residential Brokerage
140-A S. Roselle Rd., Schaumburg, IL 60193
Direct phone:
847-301-3126
Web:
www.BobDohn.com

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June Snapshot – Illinois Association of REALTORS® Market Stats

Statewide
    +
10th month in a row for home sales increases
    + Median price up 2.5% - the fourth month for median price increases statewide since
    + January 2010 (before January, last time Illinois had a median price increase was September 2007)
    + 47/102 counties reporting logged home sales increases
    + 38/102 reported median price increases for the month of June

Chicago PMSA
(Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry and Will)
    + All but DeKalb County had sales increases in June
    + 12th month in a row for sales increases – a full year
    + Grundy, Kendall and Lake reported median price increases


City of Chicago
    + 10th month in a row of sales increases
    + Median price down -3.2%

Bob Dohn
Coldwell Banker Residential Brokerage
140-A S. Roselle Rd., Schaumburg, IL 60193
Direct phone:
847-301-3126
Web:
www.BobDohn.com

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HUD RELEASES 2009 AMERICAN HOUSING SURVEY

Check out the findings of a comprehensive national sample of the more than 130 million residential housing units released yesterday by the U.S. Department of Housing and Urban Development.

 

HUD's 2009 American Housing Survey (AHS) is the most thorough look inside the homes of millions of Americans and reveals everything from the square footage of the unit to how many homes have front porches, garages or even usable fireplaces. First conducted in 1973, the survey’s long-term design allows analysts to trace the characteristics of U.S. housing units and their occupants. "This important survey provides us a clear picture of the American home and its occupants," said Dr. Raphael Bostic, HUD's Assistant Secretary for Policy Development and Research. "The housing crisis makes clear the need for continued collection of high quality housing data to help us understand housing markets. The numbers behind this survey not only provide valuable information on the composition of our housing stock, but they also help us monitor the mortgage markets, measure worst-case housing needs, and inform our policy choices."

 

The 2009 AHS includes enhanced data for five metropolitan areas: Chicago, Detroit, Philadelphia, New York and Northern New Jersey. For the first time ever, the AHS also includes data on disability status of household members. The new AHS also includes two independent metropolitan surveys of New Orleans and Seattle. Last conducted in 2004, the New Orleans survey in particular will provide an in-depth progress report of the redevelopment of the metro area following the hurricanes of 2005.

 

Follow this link for more information: portal.hud.gov/portal/page/portal/HUD/press/press_releases_media_advisories/2010/HUDNo.10-138

 

Bob Dohn
Coldwell Banker Residential Brokerage
140-A S. Roselle Rd., Schaumburg, IL 60193
Direct phone:
847-301-3126
Web:
www.BobDohn.com

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Excerpts from OXYMORONICA, a compilation by Dr. Mardy Grothe

"I hate intolerant people." (Gloria Steinem)

"Anonymity is my claim to fame." (Fred Stoller)

"I have never let my schooling interfere with my education." (Mark Twain)

"Nothing is more irritating than not being invited to a party you wouldn't be seen dead at." (Bill Vaughan)

Bob Dohn
Coldwell Banker Residential Brokerage
140-A S. Roselle Rd., Schaumburg, IL 60193
Direct phone:
847-301-3126
Web:
www.BobDohn.com

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