According to CoreLogic, a data and analytical firm, the shadow inventory in today’s market is at its lowest level in five and a half years. There are only 1.7 million homes in the shadow inventory nationwide, a drop of nearly 25% from this time last year. Unfortunately, this is still a lot more homes than what CoreLogic says is a “healthy” shadow inventory — only about 650,000 homes. CoreLogic states that shadow inventory was decreasing at the rate of 46,000 homes per month last year. While that’s good news for a depressed economy, the foreclosure rate is still high. At the end of 2013, there were about 810,000 homes in foreclosure. That’s 400,000 fewer homes in foreclosure than at the end of 2012, but it’s still a lot of foreclosure.
The appellate court recently came down hard on a buyer who reneged on his purchase contract. In 1472 Milwaukee, Ltd. v. Feinerman, 2013 IL App (1st) 121191, the court affirmed the trial court’s judgment that the buyer should be responsible for losses the seller incurred when the buyer defaulted on his contract to purchase real estate. Back in 2006, the defendant contracted to purchase a commercial building located on Milwaukee Avenue in Chicago from plaintiff for $1.2 million. However, defendant never showed up for closing in mid-November as scheduled. The closing was rescheduled, and again, the defendant was a no-show. The plaintiff re-listed the property, and eventually sold it for $911,500 in July of 2007. Subsequently, plaintiff filed suit for the difference between the original and eventual purchase price, as well as plaintiff’s carrying costs for the eight months in the interim between when the property was supposed to close,… read more →
If you read my blog, you may already know that alternative energy tax credits are available through 2016. However, here’s what you may not know: If you are selling, or will be selling, the excess electricity generated through your new solar equipment back to the utility company, you won’t qualify for the whole tax credit. To refresh your memory, you can claim a tax credit of up to 30% of the cost of certain alternative-energy improvements, so long as those improvements are completed prior to the end of 2016. But, if you are making more energy than you need to power your own home and selling it back to the utility company (called “net metering”), then you can only claim a tax credit of up to 30% of the cost of the equipment actually used to power your OWN home. So if you spend $15,000 on solar panels, technically you should… read more →
This Friday, new rules go into effect for mortgage servicers. Here’s what you should know: 1) If a borrower defaults, the servicer must contact them within 36 days. The servicer must contact the borrower after every missed payment thereafter. At least once every six months, the servicer must contact the borrower in writing. 2) By the 45th day after borrower defaults, the servicer must give the borrower a written list of possible loss mitigation options. By the time the servicer sends this notice, a specific person must be assigned to the borrower’s file. 3) In the event a borrower submits a loss mitigation application 45 days or more before the foreclosure date, the bank has only five days in which to respond and notify the borrower if there are any missing documents, or if the application is complete. If there are missing documents, the bank must allow at least 7… read more →