Chicago's North Shore - North and Northwest Suburbs Real Estate Archive

Summer is going fast! It is hard to believe that it is almost the 4th of July. The North Shore area has some of the best Independence Day celebrations in the country. Below are some of the exciting events that you and your family can enjoy. Have a safe and fun holiday!

City of Chicago's Fourth of July Fireworks
Location:  From Foster to Montrose
Lawrence & Lake Shore Dr.
Chicago, IL
Cost:  Free
Time:  9:00 p.m.  (15 minutes long)
Info:  Fireworks can be viewed on the North Side from Foster to Montrose.  Display will occur up and down Chicago's 26 miles of lakefront.
 
 
Evanston Fireworks
Location:  Clark Street Beach; 400-499 Clark Street, Evanston, IL
Cost:  Free
2:00 p.m.:  Parade from Central Park Avenue East on Central Street to Ashland Avenue
7:30 p.m. - 9:10 p.m.:  Palatine Concert Band will play patriotic music
9:15 p.m.:  Fireworks
 
 
Glencoe Fireworks/Festival -- Glencoe Park District
999 Green Bay Road, Glencoe, IL
Location:  Lakefront Park
8:00 a.m.:    2 mile fun run from Train Station
10:00 a.m.:  All-Media Art Fair on Village Green
10:00 a.m.:  Family games at Kalk Park
2:00 p.m.:    Parade
6:00 p.m.:    Park & Ride from Village parking lot & train station
6:30 p.m.:    BBQ meal at the beach
6:30 p.m.:    Children's entertainment by Magician Jeff Bibik
7:00 p.m.:    Music
9:00 p.m.:    Fireworks on the beach
 
 
Skokie Fourth of July Parade & Fireworks Festival
12:00 noon:  Parade (bands, drill teams, clowns, tumblers, live animals, vintage autos & more).  Runs north from Oakton Community College on Lincoln Avenue to Oakton Street, then east from downtown to Oakton Park.
5:00 p.m.:  Festival at Niles West High School.  Features food, drinks and live bands until dusk.
Dusk:  3-D fireworks.  The first 10,000 people get a free pair of 3-D glasses.  Location - Niles West High School

/kh

When homebuyers apply for a mortgage, the lender will look at what is called a debt-to-income ratio.  This is an important aspect and the loan could be denied if the ratio is too high. Below is more information on why is it important to you and how it effects your financing.

Debt-to-income ratio is simply a comparison of the money you earn to the money you owe. It includes credit card debt, existing mortgages, auto loans, and any other personal debt.

Your mortgage lender will look at your Debt-To-Income (DTI) to evaluate your ability to afford your new mortgage. You should have a good idea of what your DTI ratio is before you approach a lender or consider buying a new home.

You ultimately want to achieve a low DTI ratio. A high number means that you have less disposable income and less ability to maintain the home once you purchase it. With foreclosures at an all time high, lenders are not willing to assume any additional risk in lending.

Most lenders seek DTI ratios in the 20-36% range or lower, with no more than 28% of debt dedicated to the mortgage itself. While some lenders will consider higher ratios, DTIs in the upper 30% range are considered high risk.

There are several different calculators available online to help you determine your ratio, and you can always check with your financial institution for guidance on determining your DTI ratio.

Here’s a simple formula:

1. Add all your monthly payments (mortgage or rent, car, credit cards, any other debt payments)
2. Add your gross income (before taxes), bonuses, alimony, or any other outside income and divide by 12
3. Then divide the total number in (1) by the final number in (2)
4. The result is your DTI ratio

Whether you are ready to buy a new home or are just interested in your financial health, it’s a good idea to know your DTI and understand the steps to lower your ratio and become as close to debt-free as you can.

/kh

Fannie Mae and Freddie Mac, the mortgage lending giants are facing pressure on their position on principal reductions that is out of step with the Obama administration’s directives to expand principal write downs.

The result of this reluctance to get with the program? Nearly 60% (average of both) of their loans were in default a year after modification, compared to 40% of bank mortgages (who are actively reducing principal on their own loans).

Pressed to comment on whether or not they will consider this tactic, both companies and the Treasury Department have been silent.

Both Fannie and Freddie were placed into federal conservatorship in 2008, getting a $127 billion Treasury boost in the process. Their reluctance to agree to the Obama administration’s mandate to consider principal reductions may just be prolonging the inevitable, and it looks like they are running out of time. Housing experts agree that it’s time they get with the program, including putting into play the $75M they have already set aside for preventing foreclosures. The longer they wait, the number of loans backed by Freddie and Fannie that are in default continue to rise.

Obama’s Hardest Hit Fund has tasked ten states with coming up with reasonable efforts to assist unemployed and underwater homeowners. The $2.1B fund should help states put some teeth into their efforts to get Fannie and Freddie to agree to match reductions or provide other relief assistance.

Time will tell, but the rates of default and redefault at F&F continue to rise as time goes by.

 /kh

Many mortgage lenders tend to advertise with satisfied customers who appear to have been approved for a loan. The truth is unfortunately that this isn't always the case and a lot of people get denied for a loan, especially in this economy. However, it is important for homebuyers to realize that it isn't always the lenders fault. Of course they would like potential customers to assume that they will be approved but the loan industry is a very risky one right now and they have to protect their assets.  If you have been denied recently or in the past for a loan, it's time to take control of the situation and do whatever you can to educate yourself on how to change that NO answer to a YES answer! Here, to help you out are some suggestions.

• Consider a co-signer if your income simply is not high enough to qualify for the actual loan. The co-signer's income can possibly be considered as an amount towards your loan regardless if the person is living with you or helping you pay the actual bill. In many cases, the cosigner might also be able to compensate for your low credit. It is important however to understand that there are risks for your cosigner and if you default on your mortgage, the lender can actually in turn go after your cosigner for the full amount!
• Wait it out.  Sometimes the best advice you can get, especially if the conditions in the housing market is slow or the economy is bad, is to simply wait. Oftentimes when conditions improve in the economy, the lenders will be more willing to let you "borrow" the money for your loan. While you are waiting, you can take this time to work on your credit score. While you are waiting, home prices could also drop!
• Consider a less expensive property. We all want what we want, but you might have a better chance of being approved if you switch to a less expensive option. For example, if you wanted a house, but you cannot wait and you cannot qualify for the loan, you might consider switching to a smaller home or to a town home instead. Later on down the line when your financial situation improves, then you can trade up the property and move to the location and home you really want to.
• Apply with a different lender. The world is full of lenders, if you don't like what one says or you get denied - try someone else! However, if every single lender you go to denies you, you should become aware that it is for a reason - in fact, if they all list the same reason then you will know what you need to fix.  Use common sense and stay away from predatory lenders. We have heard some pretty scary stories about these places - so just don't do it. You could literally be signing your life away.

Keep in mind that if you are denied, keep trying and work on your credit and then in a few months try again! With a little time, patience and understanding, you could be able to turn the situation around to your favor!

 /kh

The long weekend with the last Monday in May is celebrated as the start of summer. Parades, barbeques and other special kick off the summer season. The Chicago area offers many fun events for everyone to enjoy. Have a fun and safe holiday!

Memorial Day Parade-May 29, 2010 - Downtown Chicago

The annual Chicago Memorial Day Wreath Laying Ceremony and Parade is scheduled for Saturday, May 24, 2008. The Wreath Laying Ceremony will begin at 11 a.m. at the Eternal Flame on Daley Plaza in Chicago ( at Dearborn and Washington Streets). The parade will step off at 12:00 noon and proceed south down State Street from Randolph Street to Van Buren Street.

Randolph Street Fest

Randolph Street Fest is the festival of the week this weekend. It runs all
summer on specific weekends. This street market used to be known as the Chicago Antique Market, but alas less antiques leads to a name change. This means all kinds of good stuff is for sale, although not at discount prices. Check it out for some browsing action at 1400 W. Randolph St, in Chicago 60607. They now feature indie items (eco friendly, home made, crafters) and world goods from all over in addition to the antiques. From 10am -5pm Saturday may 24th and Sunday May 25th. It is $10.00 to enter to cover the site rental and security fees. Call 312-666-1200 for more info. 
A free trolley departs from Water Tower Place on the hour between 11 a.m. and 3 p.m.; and returns to North Michigan Avenue from the Market every 30 minutes between 11:30 a.m. and 4:30 p.m.

 
14th Annual Memorial Day Dedication & Wreath Laying Ceremony at Grant Park
 

The Lawrence Pucci Wedgwood Society of Chicago and co-sponsor Chicago Cultural Mile Association invite you to celebrate this Memorial Day by reaffirming our pledge to assemble, honor and remember those who served this glorious country in the spirit and memory of General John A. Logan, founder of Memorial Day. The dedication and wreath laying ceremony will be held on May 31, 2010, 11:00 AM at the foot of the John A. Logan statue in Grant Park (Michigan & 9th). This event is free and open to the public, more info at http://www.chicagoculturalmile.com
 

/kh

You have searched for weeks and now that you have found the perfect home  it is time to move in! If you are using a moving company, it is likely that no matter how careful your movers are you will still have a lost or damaged item. So what should you do if a box of belongings arrives in pieces -- or just fails to materialize? Here are some tips for what to do if a moving company damages property or loses something of yours.

1.Be sure to read the Bill of Lading carefully.  This contains the terms of your agreement with specifics such as information on the type of liability you and your mover agreed upon. By law all companies are required to insure their cargo at a rate of up to 60 cents per pound. However that means small high value items will only be replaced for 60 cents.

2. Address any obvious damages or loss. It is vital that you review your inventory and make sure that everything has been accounted for and is not damaged beofre you sign anything.   If you do notice any damages or missing items before make sure to alert them of any issues and make a note on the inventory sheet or Bill of Lading. It is recommended to not accept any offer made by the company to settle on the spot as you may end up underestimating the damages.

3. Know your rights.  According to The Federal Motor Carrier Safety Administration, which regulates moving companies, they indicate that "Movers are prohibited from having you sign a receipt which relieves the mover from all liability for loss or damage to the shipment.  Make re to NOT sign any receipt which does not indicate thatprovide that you are signing for your shipment in apparent good condition except as noted on the shipping documents." If you've made a note on your contract about concealed damages, that last bit will keep you covered. However, even if you have a claim, you are still responsible for paying for the move in a timely fashion.

4. If you suffer a lost, file a claim. You have to file a claim within nine months of the date of service. Contact the movers via certified mail, informing the movers of the damage and requesting a claim form. Be sure to keep a copy of your inventory sheet handy, along with any photos or videos that can support your claim. If the movers are not in contact about your within 30 days or if they refuse to recoup your loss, you may want to file a complaint with the Better Business Bureau or even take your case to small claims court.

5. Invest in moving insurance. Even before you sign a contract with a mover, research your options for moving insurance.  This type of insurance will insure your possessions in the event of a damage or loss, or for a catastrophe occurrence.  Check with your current renter or homeowners insurance company to see what might be covered from your current policy as well.

/kh

Spring storms are here and when power goes off for extended periods due to storms or equipment failure, having a backup emergency generator can be very beneficial. There are various types and sizes of generators out there that differ upon your needs. If you are a homeowner considering investing in one below are some helpful tips that can help you.

Types of Generators

Generators come in different sizes and deciding which generator type you need is determined by your power need in emergencies. The more items you plan to to provide power to, the bigger and more costly the generator.

Stationary Generators

A stationary generator is equipped with a forced air or other type of cooling system that allows it to be enclosed typically outside mounted on a concrete pad similar to a central air conditioning unit.

• Permanent generators are installed as part of the electrical system and provide power to the building wiring.
• Electrical current from the generator may back-feed into the home's electrical system and cause damage or fire and ruin equipment if it is not properly installed. It is recommended a qualified electrician install a generator to a home electrical system.
• Stationary generators are far more powerful than any portable unit, a stationary generator will allow you to weather any outage for an extended period of time.

Portable Generators

• Best for use of a few selected circuits such as  for lights in the general living area, heating or cooling systems, or refrigerator.
• If deciding to use a portable generator, it is important to select one that is adequately sized. Some electrical motors in home appliances and equipment can be ruined or damaged if they do not receive enough electrical current.
• Portable generators are least expensive and can be transported for camping, trips or other locations where temporary power is needed

Noise Level

The noise level of your generator is a major factor in determining the right model.

•Many areas have noise ordinances that may impact generator usage, particularly at night.
•Noisy generators are unsuitable for many applications, including camping, powering outdoor events, and RVing.

Most generators are labeled with a decibel rating. For every increase in 10 decibels, the noise level is 10 times more powerful. A generator that runs at 70 decibels is ten times as loud as a generator that runs at 60 decibels.

Before you purchase a generator be sure to you have determined the total watts needed to power the items you need. This is important to help you determine what size generator is required. An electrician can help make this determination or you can check the manufacturer information for each appliance.

Whether you choose a portable or a stationary, all generators burns fuel and must be run outdoors. Always follow the manufacturers instructions and never run it in the garage or inside the home.

/kh

It is a common to find in many neighborhoods foreclosed homes due to the sluggish economy. Many homeowners are struggling to make the monthly mortgage payment.  Even with these tough times, the good news is that many lenders are more willing than to negotiate terms to help homeowners avoid foreclosure. By renegotiating their mortgage, homeowners may be able to get a lower finance rate as well as change your rate from a high fixed-rate mortgages or adjustable-rate.

 Most lenders require that you have at least 10 percent equity in your home. You can easily check the value of your home on sites such as Zillow.com and I can provide you with a free and quick estimate of your home’s worth. In addition, most lenders typically will require that you have a credit score of at least 720 to qualify for good rates.

Lenders are aware of the many fiscal difficulties borrowers have in making their mortgage payments when hardships arise. However, they typically won't volunteer or advertise their help. So if you are struggling to make your payments on time, it is vital that you take the initiative and contact your lender and give them a heads up on your current financial hardship before you miss payments.  Keep in mind that lenders have more incentive than ever to work with you. Plunging property values mean they’re recovering less now on foreclosures. Plus, many that received cash infusions from the U.S. Treasury are under pressure to show that they’re responding to the housing crisis.

/kh

Homebuyers who will request quotes from lenders for mortgage financing will find that these quotes will often include both loan rates and "points." For many potential homebuyers they find themselves confused as to exactly what is a point?

Mortgage points describe certain charges to be paid in order to obtain a mortgage on a home. Each mortgage point is a fee based on one percent of the total amount of the loan

A point is a fee equal to 1 percent of the loan amount. For example, A 30-year, $200,000 mortgage might have a rate of 6 percent, but come with a charge of 1 point, or $2,000. A lender can charge 1, 2 or more points. There are two kinds of points: discount points and origination points.

 •Discount points:These types of points are really prepaid interest on the mortgage loan. Because, the more points you pay, the lower the interest rate on the loan and vice versa. Borrowers typically can pay anywhere from zero to 3 or 4 points, depending on how much they want to lower their rates. The advantage to this type of point is that it is tax-deductible.
 
 •Origination fee: This is charged by the lender to cover the costs of making the loan. The origination fee is deductible if it was used to obtain the mortgage and not to pay other closing costs. The IRS specifically states that if the fee is for items that would normally be itemized on a settlement statement, such as notary fees, preparation costs, and inspection fees, it is not deductible.

The longer you keep the property financed under the loan with purchased points, the more the money spent on the points will pay off. Accordingly, if the intention is to buy and sell the property or refinance in a rapid fashion, buying points is actually going to end up costing more than just paying the loan at the higher interest rate.

There are many different factors that will effect whether or not you pay points as well as how many. The amount of money you have to put down at closing as well as how long you plan on staying in your house can be a factor. If you plan to stay in your home for a while, it may be worth reducing the interest rate by paying points. Be sure to have your lender carefully explain these fees if you have any questions.