Rent to own homes are available in almost any one of the subdivisions in Plainfield, but there could be a hidden risk to your arrangement, and the money you put up for a down payment.

There are quite a few investors who purchased homes from homeowners in foreclosure, that are now in foreclosure themselves. It's important to have properly prepared contracts in place when putting down a lump sum down payment for a lease option and to have it reviewed by an attorney.  The property you have made arrangements to purchase could go into foreclosure without you ever even knowing about it.

Investors often buy property with the intent of renting it out, but many new investors got into the market in hopes of making fast cash by flipping homes.  A large portion of the investors that got into the business to flip houses were banking on the previous double digit rate of appreciation.  That market crashed and burned a long time ago, and a lot of investors are now faced with homes that are worth the same or less than what they paid a few short months ago, which makes it impossible to sell without having to pay large amounts of money out of pocket to be able to sell the house.

Since the plan was to only rehab and sell the property in a short amount of time, these investors often take out loans with high rates of interest from sources known as "hard money" lenders.  When real estate investors own multiple properties, the extremely high holding costs on a hard money loan add up very quickly.  As a means to keep their loans current they often end up offering the property for rent, or as lease option to purchase. They intend on keeping up with their payments, but there have been instances where the landlord used the rent money for things other than the mortgage.  In that case, while you are paying the rent in full and on time, your landlord could be sliding further and further into foreclosure and pocketing your rent check for more immediate needs.

Rent to own options can be any arrangement that you agree upon with your landlord, but it often involves putting a non-refundable down payment towards the future purchase, in exchange to secure a price against future appreciation.  Lease options that were written in the hay day or all of this real estate madness could have serious implications because deal the tenants thought they were getting, may not be such a great deal anymore.  Even in situations where the tenant and landlord prepare to proceed with the arranged sale and the agreed upon price, appraisers always have the final say when it comes to getting the loan.  The appraisal is the banks protection against default when it comes to lending out money.

I personally think that rent to own options are great opportunities for renters who want to own a home of their own, but I highly suggest the services of a Plainfield Realtor and the legal advice and review of the contract with a private attorney. There are some really great landlords out there, but there are some really shady ones too.  Do your due diligence and research the property before you sign any papers. Here is a link to Yahoo's Rent vs. Buy Calculator.

Here are some things to look for if you suspect that the home you have contracted to purchase is in foreclosure:

• The landlord delays repairs or maintenance on the property.
• A registered letter is delivered by the Will County Sheriff's Dept for the owner.
  
• A representative of the bank comes to the home asking to speak to the owner.
  
• Late notices arrive in the mail addressed to the homeowner.
• Letters and notices from other investors offering to avoid foreclosure arrive in the mail.  Default notices are public record in Illinois.
• Someone from the street is photographing your house from the car or curb.

Your landlords foreclosure will affect you.  This link is an article about landlords in foreclosure explains the process and the implications it will have on your situation.

If you are currently renting and want more information about how to purchase your first home to take advantage of today's great home prices, call me at 630-673-6233.  I can put you in touch with the right people to make the possibility of owning your first home a reality in less time than you might think.

Not long ago the road sides along Plainfield and Naperville streets were littered with 'WE BUY HOMES' bandit signs, but today the only investors still surviving in the current real estate market are purchasing homes at deep discounts through short sales based on their current market values. (not on what the homeowner owes), and then holding them as rental property until the market improves.

This has opened up the market to a whole new set of buyers who were previously shut out of the market due to the real estate feeding frenzy that ended a little over a year ago by these investors. 

Three simple reasons that investors have stopped buying up all of the good real estate opportunities in Plainfield and Naperville are:

• Funding for these types of loans have dried up with the demise of the sub-prime lending industry.
  
• There is too much competition in the inventory of homes to successfully sell the investment property quickly to avoid holding costs.
  
• They can no longer bank on the anticipated future appreciation on their investment for equity.

While the inventory of Plainfield and Naperville homes being sold for less than what is owed is driving the price of homes that are available for sale, many buyers who have been lucky enough to sell their home, or 1st time home-buyers that don't have a home to sell, are cashing in on the opportunity to purchase pre-foreclosure and foreclosed homes in Plainfield and Naperville.

In the past, bank owned or foreclosed homes were traditionally abandoned and trashed on the interior, but today the face of foreclosure has changed. Your neighbors, family, and friends are among those who have either lost or are about to lose their home, and that is not the case. These homeowners are simply walking away. Homes in Plainfield were among one of the hardest hit communities in Will County to be affected by foreclosure, but the amazing thing is... even after everything that has happened in Real Estate over the last 3 years, Plainfield home prices are still 2% above their 2005 values on average.

Because the volume of foreclosed homes in Plainfield and Naperville is on the rise, buyers now have a better opportunity to negotiate directly with the bank on their purchase. There are several reasons that negotiating with the bank in the purchase of a Plainfield or Naperville home will end in the buyers favor in most cases:

• The bank is not emotionally attached to the property.
  
• Their price is based on statistical data including recent home sales and appraisal.
• Many of these loans are federally insured by the US government, (FHA loans) for 82% of the loan to value ratio, meaning they can be sold for a bank net of 82% of their value.
• Banks understand the value in liquidating a non-performing asset for their investors.
• Because Illinois is a judicial state, the foreclosure process is 4-10 months long on average. The bank is often eager to settle for less before the date of the auction to avoid additional court costs and property management fees. Also, the home is less likely to be vandalized by the homeowners if they have not actually lost their home at the auction.

1st time home buyers, and buyers that don't have a home to sell, have a unique opportunity for buying a Plainfield or Naperville home that is in good condition and under market value. The hesitation for buyers in this market comes from analysts that say the worst isn't over yet. The best way to safeguard your investment is to buy a home under market value through a short sale, pre-foreclosure or as an REO, right from the bank.

I predict the Plainfield and Naperville real estate market will begin to improve after this November's presidential election. The current price of gas and the worry of inflation have many potential home-buyers climbing back over the fence. Consumer confidence will begin to improve when some of the uncertainty of our governmental and economic conditions have been put to rest.

I have 4 years of experience in dealing with short sales, bank owned properties and pre-foreclosures. I have successfully negotiated short sales for homeowners in foreclosure, and I have been performing Broker Price Opinions for lenders on property in default for the last 12 months.

I know how to evaluate property in Plainfield and Naperville because I live and work in the community. I can help you find the best home at the best price. The best part is it's not just what I'm good at... it's what I love to do!

If you are buyer looking to purchase or invest in Plainfield or Naperville real estate, I can help you find the best value for your money, and put you in a position of equity to protect your purchase from further market depreciation.

If you are a homeowner facing foreclosure in either Plainfield or Naperville, IL, I can attempt to negotiate a short sale with your lender to avoid a foreclosure. Due to the high amount of inquiries I receive about short sales, I limit the number of homeowners in foreclosure that I can successfully assist at one time.

Call me at 630-673-6233 to get started right away. I look forward to talking to you.

I am in the middle of a short sale with a seller in Oak Park, IL.  This couple has been a pleasure to work with, and although they now live out of state they have been stellar in getting me all of the documents that I've required through this process.  I speak to the Mr. or Mrs. at least 2-3 times a week (usually more!); either updating them with progress, or answering their questions about the process. I return their calls promptly, and I have been in excellent communication with their lender, their attorney, and the attorney for their lender.

I've tried to stay in contact with the buyers agent... and the buyers lender.  (but that hasn't worked out so well....)

I have had 4 contracts on this house since March.  The first two were dissolved because the buyers were not willing to meet the banks price requirements.  The 3rd in under contract right now, and as of early last week we had a 4th offer as back up, that backed out at the last minute.  They were not going to be able to meet their lenders requirements for a down payment.

That brings me back the agent and buyer that we are currently under contract with.  It's a 95% LTV conventional loan.  Her mortgage broker is a complete jerk, and I was supposed to have a commitment letter from him last Monday by 9:00 am.  The house was scheduled for auction last Monday, July 7th at 11:00 am.  I was able to contact the lenders attorney for an extension, which he gave me... but the buyers moretage broker STILL has not gotten me a commitment letter.  We went to contract on June 12th! 

The extension expires tomorrow and the auction is scheduled once again for 11:00 am.  I will attempt to delay the auction for another week in hopes of receiving the commitment letter by this Friday without delay, but I'm not sure how many more extensions the bank is willing to give me. 

The sellers ower over $500,000 on this house.  The bank is graciously willing to accept a net offer of $320,000 on the property. Not too shabby if you ask me.

The problem doesn't lie with me, the sellers, or the bank...

The issue I am having is with an agent who doesn't care about his buyers intent to purchase this property, and a lender who not serving his clients needs.

Let me start with the buyers agent.  Every time I call him he sounds like I just interrupted the most important event of his life.  I'm am dead serious when I say that.  He doesn't make a much better impression when he's the one doing the dialing, which is hardly ever.  Getting updates, or asking him questions is like pulling teeth... from a shark.  The contract had 3 bogus phone numbers for the buyers lender. (No, I'm not kidding.)  I finally had to have a 3 way call with the buyers attorney to get the information that I needed to delay the sale... and you won't believe what happened next.  I don't know if his buyer is satisfied with the progress he has made on her behalf, but if I were her... I would be raving MAD!

And now for the part you simply will not believe.  After I finally received the correct contact information for the buyers lender, I needed to make contact with him after I was granted the extension on Monday.  I finally got in contact with him on Tuesday afternoon and he was anything but pleasant or professional.  He didn't seem to understand that time was of the essence and that unless he responded to the fire under his butt, this transaction was going to evaporate into thin air. 

When I told him I needed the commitment letter ASAP he told me (with great attitude) that it was in underwriting.  Wait a minute... he didn't even order an appraisal.  How could it be in underwriting?  I informed him of such and pressed him for more info and he told me  he "only speaks to sellers attorneys" and "to quit telling him how to do his job. He's sick of Realtors telling him how to do his job and that he'll do what he has to do to close the deal."  I was starting to get hot in the face.  I told him that I couldn't believe he was talking to me that way, and that he was being extremely unprofessional and that if he really was doing his job, that I wouldn't have to!  In the background I heard a woman snickering and laughing at his last remark, made at my expense, previous to her shouting "SHUT UP! SHUT UP!" to the sound of children's voices coming from the background...

To the lender and agent in this transaction:  I don't care who you are.  I don't care what you do. I will call you everyday to meet my fiduciary commitment to my client. 

I committed to my clients 9 months ago to do everything I could to help them avoid a foreclosure.  Your nasty attitude, your meager efforts, and your inability to follow through, will only incite me to not only do my job, but yours as well.  Unfortunately you will be compensated through my efforts, but please note that they will be undeserved.

The bank and my sellers have been amazing in this short sale process. This transaction would have been aces had it not been for the jokers I have to deal with on the buyers side. 

I deal with short sales.  I deal with foreclosure.  I don't have time to deal with agents and lenders who drop the ball.  I'm not too worried though.  You will be out of business by the end of the year with an attitude like that in this market.  Which leads me to my next question?

Are you sure your Realtor is doing enough for you?! 

BTW, these sellers were referred to me by an agent here on Active Rain/Localism.  I not only work on behalf of my clients to uphold my good name, I work to uphold the name of the agents who have trusted me to uphold theirs. 

If you are facing foreclosure in the Will County, IL area, maybe you need someone like me to help you avoid a foreclosure as well!  Call me at 630-673-6233.

You haven't had a showing, well... EVER, and you refuse to reduce the price. Maybe it's time to rethink this situation?

No amount of marketing I can provide will undo the damage of over-pricing your listing.  Yes, I'm talking to YOU!  The homeowner who insists that the custom painted interior will eek out the $$$ you paid for it.  (Personally I'm a do-it-yourself-er.  Home Depot, Baby.  Your custom paint job wouldn't mean a thing to me at all.  It's just paint! )  Or the homeowner who has the highest priced house in the neighborhood who refuses to part with their decade old appliances...  really?!

If you want to sell in this market, you've gotta be smart about how you do it:

• Listen to your Realtor.  We know what we are talking about.
• Make any improvements that they suggest which you can comfortably afford to do. 
  
• Neutral is the new black.  DO NOT assume that your buyer will love your wild and bold taste in decorating...
• If your carpet looks like a herd of wild elephants have trampled on it, REPLACE IT!!!  It will cost you more money on the final sale.  TRUST ME!!!
  
• NO, in this market people won't just make and offer and give you the opportunity to negotiate.  If you are overpriced, they will take you off of their list.  The homeowners listening to their agents are the only ones SELLING their homes in this market!
• The longer your homes sits on the market unsold, the bigger the stigma that is placed on it.  If you change Realtors and relist your property on the MLS, you still have a history on the MLS.  Good agents will show their buyers these things.  They REEK of desperation, and you will get an offer well below asking price, GUARANTEED!.
• Check out the latest issue of Better Homes and Gardens... or visit Open Houses for sale in your area.  It's the only way you will know what you are competing against.  You have to think like a buyer in this market

I know you don't want to make major improvements to sell your house in this market, but if that's the case, you WILL have to make concessions to keep up with the competition.  I have seen multiple homes for sale on one street here in Plainfield.  I can only imagine that's exactly what is happening all over the country. 

If you are anything like the buyer I mentioned above, you are probably the only person on Earth that loves your home enough to pay that much for it. Congratulations... it looks like you have yourself a house!

In this market, if your house won't sell... it all comes down to price.  Buyers can be very picky in this market. If you really want to sell your house in this market, you will follow the closed comps in your neighborhood weekly.  They will tell you exactly what your house will sell for!

Not using a Plainfield or Naperville Realtor to purchase your next home never crossed your mind probably for good reason... you don't have to pay for your representation, the seller does it for you!

Having buyers representation provided at the cost of the seller is a wonderful thing.  You are protected by the laws and regulations set forth by the state of Illinois in accordance with my licensing, and I get paid at the closing table for my time, knowledge and experience, in maintaining the transaction.  Win-win, right!?

Well... almost.  There isn't a single moment in a buyers transaction that I am guaranteed to be paid for my time and effort.  My services are rendered in advance on the assumption that you will be purchasing a home sometime in the near future using me for your buyers representation or as your Plainfield or Naperville real estate agent.

Not everyone understands the crazy way in which a Realtor actually gets paid, or in some cases, doesn't.  There are many people in the general population who think that agents merely "show people houses", but the truth is, that is only the beginning.

Depending on the buyer, the "showing houses" part of the transaction can be a tedious and time consuming part of the transaction, as it should be.  Finding the perfect home for some people can take weeks or months; for others it can be the very first house they see. 

The time involved in this process goes well beyond opening the doors of the houses my client chooses to preview.  It takes time to search for specific criteria, pre-view neighborhoods, map out showings, call listing agents, and drive to and from the appointments.

After you've found the perfect house, it's my job to provide you with closed comps for you to base your offer on.  Making sure that you know the market in neighborhood you are making an offer on, is my responsibility in representing you.  Alerting you to a great find is equally important if you are concerned about missing out on a great deal. 

Writing the contract and negotiating the transaction are also time consuming and necessary components to my profession.  My phone rings at the grocery store, the dentist, and even at 2:00 AM!!! 

Once the sale is pending there's still work to be done.  Getting in contact with the loan officer or mortgage broker and attorneys are necessity.  Keeping in constant contact with both of these individuals throughout the remainder of the sale is key to a successful closing.  Unexpected requirements, or changes to dates and mortgage criteria, can have devastating effects on a transaction if they are not discovered until the last minute.  It's my job to intercept these situations.

The end result will be that approximately 4-6 weeks after your offer is accepted you'll be carrying cardboard boxes over the threshold of your new home.

One thing that any real estate agent hopes is that you'll treat us with the same respect and honesty we give to you.  Using more than one agent is misleading and time consuming for the agent who won't be getting paid...  I don't know of many people who work for free, but this happens every single day in the world of real estate when buyers fail to disclose that they are already working with another agent when asked. 

If you are unhappy for any reason with the service the agent you have chosen, just be kind and release them of their duty.  Using two agents when you can only purchase one house isn't really honest or fair when one of them won't be paid for the time and effort.

I'm not exactly sure that everyone completely understands what an agent really does to earn their commission, but I hope that this information is a good resource for anyone in the market for buyers representation in Plainfield or Naperville, IL. 

If you want to more about what my representation can do for you, call me at 630-673-6233.

As you may have noticed I recently transferred real estate offices.  I joined RE/MAX Professionals South in Plainfield, IL this week, and I know that it was not only the best choice for me, but also for my clients.

RE/MAX is the industry leader in real estate and they also hold the market share in the Plainfield, Naperville and Shorewood, IL.  I chose RE/MAX because of the brand recognition, and technology and support that they offer to their agents.  I was not only impressed with the office, but also by the brokers and staff the operate the office.  Rich Conte, Lisa Mulcahy, and Dan Persico welcomed me with open arms.  They were not only professional, but fun to be around.  I believe that energy is contagious and I wanted to be part of this from the second I set foot in the office on Renwick Rd.

There are 3 offices affiliated with our brokers: RE/MAX Professionals Select in Naperville, IL, RE/MAX Professionals South in Plainfield, IL, and RE/MAX Pinnacle in Shorewood, IL. 

RE/MAXnot only offers the exposure that my clients expect, they also offers the professional service my clients deserve.  I have met many agents in the field over the years and I have always had a great experiences with all of the RE/MAX agents in Plainfield that I have worked with in past transactions.

This is a smart move for me, and I know that my clients will continue to benefit from my relationship with RE/MAX Professionals South for years to come! 

Now you can find me at:

RE/MAX Professionals South
24014 W. Renwick Rd.
Plainfield, IL 60544
815-609-0100 Office
630-673-6233 Direct

The Farmstone Ridge neighborhood is located just off of Naperville/Plainfield Rd. and 127th St. in Plainfield, IL. Each home was custom built on a premium lot by local area builders. Construction in Farmstone Ridge began in 2003, and the subdivision neighbors the private nearby gated Lakelands Community.

The students of Farmstone Ridge attend Liberty Elementary, John F. Kennedy Middle School, and Plainfield North High School, although Plainfield East High School will be opening as Plainfield's 4th high school this year. I've driven past the new school quite a few times over the last few weeks and it's coming along quite nicely!!!

When I was still working at Zen Salon in the plaza at the corner about 5 years ago, I met a lot of clients who lived in the neighborhood, which was nice because I know what a great neighborhood Farmstone Ridge really is.  The ladies of the neighborhood get together quite often and I often wished I lived there so that I could be part of all of the festivities too!

The yearly assessment for Farmstone Ridge is $380 per year. As of today there are currently 5 homes actively listed for sale, and 4 properties have closed in the last 9 months.  I usually only like to go 6 months out on comps,  but in this sluggish real estate economy, we have to take what we can get!

Active Listings in Farmstone Ridge:

Closed Listing In Farmstone Ridge in the Last 9 Months:

Of the closed listings over the last 9 months, it should be noted that both 12751 Pintail Rd. and 12812 Stellar Ln. were bank owned or pre-foreclosure sales, which means that because of the urgency of liquidating the assets that the true value of the property was not captured in the sale of the property.

In this market, no community is immune to the effects that foreclosure brings to the table.  While bank owned properties (REO's) usually do not affect the appraised value of regular residential property, short sales often times can, and do, bring down the closed comparable values for a neighborhood.  This is due mainly to the fact that the bank never actually took repossession of the home and they are not truly considered "foreclosed" properties.

Despite all that has happened in the housing market over the last 2 years, Plainfield home values are still holding strong, not only against major cities all across the United States, but against neighboring communities in the northwest suburbs. Since 2005 Plainfield has still seen a 2% appreciation in real estate which is almost unheard of in real estate today!

Farmstone Ridge is just minutes from some really great shopping and dining.  I know I help the Target at the corner of Rt. 59 and 127th street in business, and our favorite family restaurant is Red Robin right across the street!  (Seriously, those are some really tasty burgers!) 

As I mentioned before I used to be a stylist at the Zen Salon in the plaza at that intersection and a former client of mine who actually lives in Farmstone Ridge, owns the Dinners by Design franchise in Plainfield, just a few doors down from the salon!  If you've never tried Dinners by Design I highly recommend it.  Think of it as making 2 weeks of dinners in advance and not having to rush home to cook!   This is priceless when the kids are in school and after school activities are at their peak...

Anyway, I think Farmstone Ridge in Plainfield is a great place to live, and I'd eagerly take a client there to show them any of the homes available for sale.  Heck, I'd want to live there myself if I didn't already have a home of my own :)  Want to check it out the houses for sale?  Call me at 630-673-6233...  I want to see them too!

I'm sure there are lots of reasons why Plainfield and Naperville homeowners find it more appealing to try to sell their homes for sale by owner, and I'm sure the 4-7% commission that a Plainfield or Naperville Realtor would charge them for their service tops the list... but did you know that according to NAR, homes for sale by owner sell for 32% less than homes listed with a Realtor, on average?

Wow, even if you figure in a 5% commission from a Plainfield Realtor, homeowners are still losing about 27% of their homes equity anually by chosing to eliminate the professional services of an Illinois Realtor. Yikes, 27% is a lot of money on a $250,000 house! 

The median FSBO selling price in 2006 was $187,200, compared with $247,000 for agent-assisted transactions and in a faster amount of time.  That pretty much makes hiring a Realtor look like a pretty sweet bargain!

Here are some of the reasons For Sale By Owner homes sell for less money, in a longer amount of time:

• Sellers do not know the true value of their home.
  
• Limited exposure to Internet and tech-savvy buyers.
• Inexperience with negotiating the terms of a contract.
• Limited access to the price of competing home values.
• Limited access to closed home price comparables.
• Most buyers use a Realtor represent them when purchasing real estate and FSBO's are often over-looked because the limited amount of information available about the homes statistics.

If you are on the fence about whether or not to hire a Realtor to represent you in the sale of your home, interview a few Plainfield or Naperville real estate agents and then decide if you have the time, effort, and energy to provide the same level of service for yourself than your Plainfield or Naperville Realtor will provide for you!

If you are a Plainfield or Naperville homeowner thinking about "For Sale By Owner" or have a property you are currently marketing on your own, it would be my pleasure to answer any questions you may have about the process.  Just give me a call at 630-673-6233.

Read also:

What Kind of Improvements Do I Need To Make My Plainfield or Naperville Home Sell?
Plainfield Home Values and How They Comparea Against the Housing Bubble
Testing the Market With A High Asking Price