Rain nor sleet nor Relocation??

No wonder stamps cost so much! The US postal service lost big bucks on relocating employees homes even the real big ones...over $1M!! Ouch...

Rainy Christmas Eve in Waukesha County

The Squirrels Never Had a Chance

My wife and I bought this squirrel feeder from Wild Birds Unlimited in Delafield for my parents back yard this Christmas. As you can see the Blue Jay is hogging all the peanuts. The squirrels never had a chance to get their little paws on the goods--poor guys. Dad said that the Blue Jays were lined up to take their respective turns on the wreath. As soon as one left the next flew in for some goodies. In less than 2 hours they had consumed half of this wreath. I hope you had a good Christmas and just enjoyed the fun with family or friends.

This is not Real Estate Related

From time to time it is nice to depart from all things Real Estate. A friend of mine recommended this book, "Stumbling on Happiness" by Daniel Gilbert. I checked our local bookstore Books & Company to obtain my copy. They are not paying me for this endorsement, but I prefer to shop locally, if I can and I really like brick and mortar business'. Besides I figured that if I had waited 3 months to get around to the purchase I could easily wait another day for the book to come in, so I placed my order. I know that is a bunch of useless information but oh well. The book has an interesting premise--What really makes us happy? Or conversely what makes us unhappy? The first chapter is engaging and I will report what I think about this book, not that anyone is really interested. Blogging is a fascinating thing. More Later...

One of the worries of professionals in my industry is that rates will go up forcing some potential home buyers from the market. The 30 year fixed rates averaged 4.81% as of December 10, 2009 up from last weeks average of 4.71%. While the rate is still low, compared to last year, the fear is that banks will have to raise rates since the Fed indicated that they will reduce the amount of mortgage paper they are buying by March 2010. This shift to the private sector has some worried that rates could climb at least 1% perhaps even 2% over the current low rates. That combined with tightening credit is giving everyone the jitters. Please see the Wall Street Journal Article.

Oconomowoc School District Links

As a parent I am very proud of our school system in Lake Country. I thought a few web-links would be helpful for those parents who have not found the OASD (Oconomowoc Area School District) site or for those of you who are thinking about moving into our area. Oconomowoc Schools Media presentation is a colorful look at the School District.

OAC Box Office is a great site to save to your favorites on your computer. From this site you can purchase tickets for events at the OAC (Oconomowoc Arts Center). Having attended quite a few of the "non-professional" presentations I honestly don't know why they are called non-professional, because the kids rock. The signing, dancing, choreography, set design are all professional! It is truly amazing to watch.

If your child desires to go beyond spanish as a language and comes home one day and says, "nǐ hǎo" or Good Morning in Mandarin Chinese, they can learn this exotic language right here at the Oconomowoc High School. Scroll down on the page and you will find more information about the International Baccalaureate program or IB for short.

Do you want to know a little more about your child's teacher? Well there is a link for that as well on the staff page . Here you can quickly save the email address for easy contact.

All the athletic information from schedules to opportunites are located on the easy-to-use site. As a parent you are connected to everything your child may want to involve themselves in.

Are you moving into the area and you would like to know what Elementary or Middle School area your new home is located in? The easy to locate district map will provide you with all the information you will need.

Here's hoping this helps!

In Real Estate

Headlines for Monday December 7, 2009

House Flippers Are Back!

House Of The Day

Fed NY Pres: "The recession now appears to be over"

Baltimore Lender gets boot from FHA

Naked Santa Causes Stir

Buying a Short Sale

In today's ever changing Real Estate market, as a buyer you will undoubtedly come across a "short sale". A short sale is a process that the seller's market value of the house will no longer satisfy the current indebtedness. The banks in some cases will forgive the debt. This process is called a short sale. As a buyer there are a few factors that you should be aware of before putting in an offer on a short sale. Here is a brief list of questions to consider:

1. How many mortgages are on the property? If the seller has more than two mortgages against this property then chances of you obtaining the property in a relatively short period of time are almost nill.
2. Are there any unpaid HOA (Home Owners Association) dues? If there are the listing agent should try and work with the seller to get those paid ASAP.
3. Has the seller sent in ALL of the information that the lender has requested? If the seller has not done this and included their hardship letter then move on to the next house. This is not going anywhere. You can determine much about the sellers cooperation if they have not submitted a complete packet. Partial packets to lenders are deal killers.
4. Find out who the lender or servicer is. Some lenders/servicers are slower than others. Your Realtor should be able to assist you with this.

Just because the property is in the short sale process does not mean you shouldn't think about submitting an offer, but a little extra information before the offer can make the process easier.

Good luck in your search for the perfect home. Feel free to check out my other blog at Lake Country Blog where I regularly comment on life in Lake Country.

In Real Estate

Wells Fargo to Lay of 26 in the Falls

Foreclosure Scams in AG sights

From Versace to Chainsaws

AM Trust Shut

Partents Give Downpayment money to kids

Rates pushed lower by low housing demand

Consumers on the hunt for personal loans

Short sales made easier

What Difference Do It Make?

I recently blogged about a book I had read "Same Kind of Different as Me" by Ron Hall and Denver Moore, and how much I enjoyed the book. It is a moving story of friendship, redemption and healing. I was greatly moved by the book. The publisher saw my brief review and asked if I would be willing to read the new book that the authors penned, "What Difference Do It Make?"  I said yes. Well the book arrived today so now I need to do my part. Hopefully I can get through the book in the next few days and will post my review here. From the brief introduction it looks like it will be as good as the first book.  Developing...

Snow is Coming...Are you Ready for the Slush?

It snowed last night, not much but just enough to remind us that winter is on the way. With the snow comes slush and wet shoes. I always have a pack of shoe covers handy for each listing. Most home-owners appreciate the gesture. When buying the covers I generally like to get the universal shoe size, or one-size fits all type. These shoe covers I found to work great for the "snow season" . Most

30 Year Low for Mortgage Rates

With interest rates at a 30 year low down to 4.71% lower than last weeks reported low of 4.78% some buyers will sit on the sidelines and wonder if they will get even lower before they jump into the market. But before you hit the "snooze button" and check out remember that the market is changing quickly. If you are serious about buying your dream home, now is the time. Spring will bring other pressures to the market

Big Homes Still Hope For Buyers

I thought this was an interesting article. Click on the title to link to the MSNBC article. The Mega-Mansions those 9 figure homes, yeah you read it right, $150,000,000 asking price for Aaron Spelling's home-these big priced tag homes are feeling the pinch too in the real estate market.

You Want to Wait?

This article from the Washington Times on-line paper today states that soon the government will have to end its near total purchase of mortgages that have been generated so far this year. The extension of the first time home buyer credit will stabilize the already shaky real estate market, but only as long as the credit is available. With the eventual withdrawal from the market banks will have to pick up the slack with the mortgages. In a nutshell this means that rates will go up sometime in spring of 2010. Banks are in the business to make money and at 4.78% for a 30 year fixed note, banks generally are not too excited about these low rates. Many experts agree that rates will increase at least one percent to 6%. While this is still historically low, the increase in interest rate has a negative consequence to a buyers purchasing ability. This is what concerns most real estate experts and should most definitely concern soon-to-be home sellers. The old adage that "Spring" is the time to sell is gone in this market. If you are serious about selling NOW is the time to put your home on the market. Waiting could cost you thousands of dollars. If you would like to know more feel free to call me and we can talk, no strings attached, as to why this is the case. You can always reach me toll free at 1-888-HEY GLEN.

Q: My bank wants a hardship letter for my short sale. Can you give me some tips on what to write?

A: A hardship letter is almost always required by every lender. This letter should be brief and to the point AND it should be no longer than one page. There are three elements to this letter too. First you should apologize to the lender for being in this situation. Second your letter must state what your situation is and why you are having trouble making your payments and finally the letter must indicate that you have exhausted all other efforts to resolve the situation. It goes without saying, but this should be all true. Don't make the mistake of writing more than one page. You will be submitting a lot of information along with the hardship letter and you want the loss mitigation department to actually read this letter. Keep it simple and direct.

Q: Someone at work mentioned that if I was behind in my mortgage payments I could do a short sale. What is this?

A. A short sale is an agreement between you, the homeowner, and the bank to forgive a portion of your loan balance. For instance, if your mortgage is for $300,000 and the best price you can obtain for the sale of your home is $275,000, the bank may be willing to agree to forgive the $25,000 on your note. There are conditions to this. If you find yourself in this situation it is always a good idea to get good counsel from an attorney. Each lender has different requirements for a short sale, but if you are contemplating this route you will need to contact your lender and ask for a short sale package. The package will have requirements of what you need to submit to the bank before they will consider a short sale. Here is an important point. Whatever the bank asks for give it to them. This is not the time to argue with the lenders requirements. Short sales are growing in popularity and can be good options for homeowners in trouble who want to avoid foreclosure.

Beware of the Foreclosure Scam

How could it possibly get worse? If you are in pre-foreclosure or foreclosure please be aware that there are scam artists out there who will prey on you in your distress. They will send you correspondence that looks like it came from your bank asking you to send your payment, partial payment or fee to this "specific department" at the bank. All sorts of promises will be made to you about the process and your ability to stay in your home. Meanwhile the real lender is not receiving the payments pushing you into further trouble. When in doubt call your bank or your attorney, but don't fall for these sick scams. Watch this blog for more tips on the foreclosure process.

3 Common Mistakes a Seller Makes

There are three typical mistakes a seller makes when hiring a Realtor to list their home for sale. Avoiding these can save you money and lots of hassle.

First and foremost, sellers often think they know more than the agent they are hiring. Here is a good tip; If this IS the case then find a true expert. The real pro's in real estate are highly engaged in the business and are watching trends daily if not hourly. Unless, as a seller, you are in real estate, chances are you are not as up to speed as you think.

Second, and this really goes with the first rule, if you don't trust your agent you are probably in for a rough selling season and have a greater chance of leaving money on the table. The really good agents, the pros, will not list your home for what you want. They will suggest a listing price that will work in the market and will be perfectly willing to NOT take the listing if you want more than it is really worth. The sellers who get trapped by the "this is what my house is worth" notion generally loose out big time.

Third, and this is the big one, listen to your agent. The selling process is complicated and there are other factors besides price that can cost you big bucks. Just focusing on price is short sighted and you may miss other variables in the contract.

In this market some buyers give a seller only one shot at the offer. You need to make the most of every opportunity you have and the pro's know how to make the best of every opportunity.

Underwater Mortgages

http://tinyurl.com/m7ftum

Most of the time I can agree with the WSJ and their respective authors' opinions as to the Real Estate market but with the above referenced article I take exception with Mr. Feldstein's take on the method in which we might stave off future foreclosures. In the article he suggests that the very people who are underwater with their current mortgage would somehow miraculously agree to the notion that the government will forgive a portion on their mortgage(not enough to make the bad situation an even break-even) and in exchange, the bank that holds your mortgage now has recourse against the borrower even if the borrower files for bankruptcy. Really? Who is going to stand in line for this ridiculous notion? Does Mr. Feldstein really believe that you would put yourself in this position because it will help everyone as he suggests? Let's be honest Mr. Feldstein; many of the problem loans that were generated that were "subprime" were not leant to people who were thinking of the common good. Those who find themselves severely upside down now due to a job loss are not thinking about the common good right now - they are thinking about how they can satisfy their family's "common good."

The problem stems from policy wonks who have little contact with the market, they wish to control, and their meddling into the free market system. The push to 'regulate' the masses into housing is what created our housing bubble and the FREE market is returning the level of home ownership back to 1985 levels.

The moral of the story is this; let the market work. There will be ups and downs. Interfere with the market and the ups and downs create more opportunities for a loss of our Freedom.

Remember GM?

The London Tea Room

The London Tea Room St. Louis MO

Lori and I are away in St. Louis for a conference and while we had a few minutes between sessions we wandered up Washington Street in Downtown St. Louis to discover this fantastic Tea Room. We have been tea lovers for the past 10 years and love this great Australian tea from Madura Tea Company. http://www.maduratea.com.au/ We especially like their Earl Grey blend. Well when we found this place we thought we would try their blend as well. WOW what a cuppa! Smooth, rich flavor in a great setting. We loved sitting outside with our steaming cup at a little marble topped table with a nice sandwich (those are great by the way) and a small buttery english shortbread. The cook knows his or her stuff that is for sure, because these little delights are the real deal! We enjoyed it so much that we have been back every lunch for the week. The englishwoman, who hosted us, is a real delight too. If you are in St. Louis, love tea, you must check this place out. It is worth the trip to find it.

Recovery Market?

http://tinyurl.com/mq5zn7 This link to the Wall Street Article mentions a home sellers dilema when pricing their home. The advice given is sound, from a professional's standpoint. When pricing your home one must really consider several factors that this article points out. First I would look at the what the competition is priced at and second, I would look at what the competition sold for. With the revised rules regarding appraisals, the price of a home is no longer what the seller is willing to sell for and what the buyer is willing to pay. The new third party to this equation is what is the appraiser willing to bless? Local experts are a valuable source of information, including appraisers.

Are we in a recovery market? I can't answer that question. But for starters Waukesha County lists 95 foreclosure sales are scheduled for the remaining days of August. I don't think we are in a recovery mode yet. Time will tell.

I Want What I'm Used To

http://tinyurl.com/l67ofd I read this interesting article in the Wall Street Journal this morning about the death of McMansions. And I thought the end paragraph best summarized the article, when the autohr June Fletcher says, "I suspect that when the recession ends, and today's first-time buyers are ready to move up, they'll want a home just like the one they grew up in. In other words, a McMansion". It was an interesting read.

Tax Assessment--Fighting City Hall

It is that time when the city will be sending out the reassement notices. Guess what? Taxes are not going down! Even with this economy. So here is a great article on how to fight City Hall with your property taxes.
http://tinyurl.com/mdsxy9

Values are plummeting in the city and across Lake Country. Go prepared to make your case. See what you think of the Wall Street Journal article and if it applies to you. The municipalities need to take notice that the citizens are watching how their elected officials are spending the money and if the reassessments are fair. Check the blog I posted a few hours ago about the values in Oconomowoc.

Family Fun in Grandhaven

It looks impressive from the outside and inside it is equally impressive as well. Grandhaven in the Town of Delafield and is the setting of this fantastic property. Here is the really cool thing about this home. This past Tuesday I had a broker's open for the top agents in the area. We had a nice lunch catered for these professionals. These folks are in lots and lots of homes, some huge and rambling. The overall comment when they walked into this 9,000 plus square foot home with an indoor basketball court, was "This feels like a family home." WOW I was blown away. I knew the moment I walked in that this was a special home. It has 18 rooms, but each room is intimate, warm and inviting. So many of the larger homes have these cavernous rooms that leave you feeling less than invited. So when I heard that the other agents, competitors of mine, were saying how comfortable they felt and that this was a great "Family Home" I knew that this was a winner.
http://tinyurl.com/kj53ga. Click here to see the YOU TUBE video of this great home. If you know of someone who loves grandeur and comfort then this might be the place for them.

Feel free to call me at 1-888-HEYGLEN or shoot me an email for more info at ghanon@shorewest.com. This homes website can be seen at http://www.shorewest.com/1088908

Oconomowoc Housing Statistics

For those of you who like the crunchy stuff here are some stats as to the state of real estate in the greater Oconomowoc area. The numbers are averages, but they give you an idea of what is happening in our city. The data is from MLS (Multiple Listing Service) and is for the greater Oconomowoc area only. Currently we have 311 homes actively for sale in all price ranges. Of the 311 homes the low is $105,000, the average is $515,886 with the high of $3.1M.

The solds in this sampling were from January 1, 2009 through today, July 17, 2009. There were 112 sales in that time frame with the low of $85,000, the average of $253,923 and a high of $995,000.

With that many homes on the market it is a good time to purchase a home in the city! If you would like more data or have questions about this data, feel free to contact me at ghanon@shorewest.com or you can call me at 1-888-HEY GLEN, toll free.

Ahh the Lake Life...

Over the fourth of July we spent a little time at the lake and I have to say that this is one of the best times we have as a family. The boys can spend all day on the lake sailing and we can just relax and enjoy the warmth of Wisconsin in the summer. Probably the best part of being together as a family is after dinner playing dumb card games. Our only entertainment are silly games, but we are all together and I guess that is what makes those times at the lake the most special. No cares, at least for the moment, no telephone interruptions, just fun and family. Those breaks are essential, no matter what line of work one is engaged in. Those fun times are always highly anticipated and never seem to last long enough but I guess that is why they are the fondest memories. Ahhh the lake life....

The Condos at Pabst Farms

Oconomowoc WI--

Centrally located the condos at Pabst Farms are a perfect addition to the single family homes. Of the 10 units that are constructed only 3 remain for sale. This aerial view shows the proximity to Summit Elementary School (on Valley Road) which is located at the top right of the picture. The homes on the bottom right comprise the western edge of Eastlake Village--a single family development. The condos blend in very well to the neighborhood feel of Pabst Farms. Everyone who attended the open house on Saturday and Sunday were impressed with the quality of construction in the units. Pella windows, tiled showers, Kohler fixtures, granite counters, underground sprinklers are just a few of the "standard" features of these very upscale condominium homes. As a Realtor holding open homes it is always interesting to hear what people think and say off the cuff. The other comment that comprised most of the attendee's was that these condos "don't feel like condos they feel like a home" That is due to the fantastic floor plans that this developement offers. So if you are in the area and want to see some outstanding condo-homes you should stop by on Saturday or Sunday from 1-2:30 or give me a call and I can set up a time for you to see these units at your leisure. You can reach me at 262-567-4349 or the Toll Free number 1-888-HEY GLEN. www.heyglen.com

Is Time Running Out?

Yesterday while waiting for our respective clients at a closing, the other Realtor and I were discussing the market and the first time home buyers. We both could have pulled our hair out trying to convey the sense of urgency that is just around the corner. The hardest part of the job sometimes is informing people of what is really happening in the market. I guess it is a matter of trust and I can understand that. Here is what is happening with the first time home buyers who are applying for the credit. Most of those buyers are using FHA which is a government program that will allow you to have less down on the house and in some cases the interest rate will be better. (But not all cases) So with the lure of lower downpayment and a smaller interest rate buyers have flooded FHA with applications. Remember this is the government!! Have you ever waited in line for a drivers license at the DMV? Well that is what waiting for loan approval from FHA is like--a nightmare! Missed dates for loan commitment are the norm. What would normally take 30-45 days is now taking 60-75 days. So here we are in the middle of July and it appears as if you have half the year to make a decision. Hold that thought. You have about a month or two to find your home then you are going to be one of the scores who are trying at the last minute to get their loan approved, in an already swaped system. So time is running out and I am not kidding...if you are on the fence make a decision either way.

How to Keep Your House Show Ready

Jeff Opdyke, from the Wall Street Journal muses in his June 25th column, http://blogs.wsj.com/juggle/2009/06/25/mastering-the-faux-clean-dealing-with-the-stress-of-selling-a-house that it is not easy to keep the house ready especially for those of you who work from home. I agree and I know it must be tremendously difficult to keep the kitchen clean when the Realtor calls for that last minute showing. This is an area that most sellers fret over and the only advice I can offer to sellers like Jeff is this: The Real Estate Community is invasive during the selling process and it is essential to price your home correctly from the get go so this inconvenience does not drag on too long.

As the listing agent I can help with this by screening the potential buyers. This is a delicate balance because if the buyer feels as though they are being given the third degree they will simply move on to the next property.

Daily task lists are good ideas for families on the go. One tactic I have taken with homeowners who have younger children is to have the parents create a reward system for their kids. Making beds, cleaning bathrooms etc. For each job that is well done the child receives a star. Accumulate so many stars and Mom and Dad will do something special for that child. I know it's bribery, but many of my clients have used it and it works very well. Besides everyone is working towards a common goal and the team work is great for the family. If poor Jeff is left to do everything himself then resentment builds frustrations will start to run high.

FDIC Chair Yanks House From Market

As reported in the Wall Street Journal http://tinyurl.com/nwj6ca Shelia Blair, the Chairwoman of the FDIC removed her home from the market. The price reductions just did not work. Really? Well price reductions do work and they do help homes to sell. We have a lot of homes on the market, but as a collegue of mine says, "There maybe a lot of signs in front of homes but only a few sellers are willing to sell" What he means by that is that even in this market some sellers are still "trying" to see what they can get for their home. My advice--Pack it up and do like Shelia did and remove your home from the market. The last thing serious sellers need in this market are unmotivated sellers who are playing with the idea of selling.

I recently particiapted in a significant poll for the top agents in the Metro Milwaukee area and one of the questions that was asked was this: "How should a Seller price their home in this market?" The number one answer: Agressively. I have had the privilege of selling over 30 homes so far for the year and they all sold because the seller agreed to price the home agressively. That is the key even in a difficult market. In Real Estate right after location, location, location it is price, price, price.

Just my two cents!

Bravo, Bravo

Kudos to Mike Duncan, the Director of the Oconomowoc Arts Center, in Oconomowoc, WI for landing the Waukehsa Symphony here at the OAC this October. The venue is simply stunning and it will be fantastic to have the WSO perform here at our very own Arts Center! Several other venues were announced in the JSonline article, which you can read here, http://tinyurl.com/d5vecw . But the really outstanding news is that Mike is working to make the already impressive building display outstanding talent as well. The first big step is to have a first class facility and now we are getting first class entertainment. I would encourage you, if you have not been to the OAC, to make it a priority to visit the OAC for a local performance or a professional performance like the WSO. You will not be disappointed, I can assure you of that. We have lived here in Oconomowoc for almost 23 years and it is a real joy to have such fine amenities available to us. We are very fortunate. Bravo Mike, Bravo!

Viva La Chilli's

The other day the boys ( my two sons) and I had lunch at Chilli's and I have to say what keeps me coming back are those darn chips. Those are a meal in themselves. This Chilli's is nice and close to work so taking time off for lunch is easy. As we walked inside the restaurant, I noticed past clients, friends etc. so I started making the rounds saying hi. When we finally sat down, Robert said, "So is that what happens when you get old?" I guess what he meant was knowing more people, but I couldn't help to focus on the "old" comment. We have lived in Oconomowoc now for 22 years and it is fun to see new places like Chilli's pop up in our little community. Pabst Farms is just around the corner and the new Pick N Save is sure nice too. I love fresh fruit and great meats and personally I can't wait for the Brennans Market to open this fall. If you are thinking about a move to Oconomowoc give me a call and I can help you find the right place to call home. You can reach me via email at ghanon@shorewest.com or feel free to call me at the office, 262-567-4349, or maybe we will just bump into each other at Chilli's!

Time for ReDirection...

http://tinyurl.com/cbbd6w. Time to redirect a little bit here to my other blog. If you have a chance check it out or follow me on Twitter at http://twitter.com/HeyGlen. There is so much happening in Oconomowoc right now that is so positive. By the way, now is a great time to buy that first house of yours especially witht he $8,000 credit out there.

Triple Net Leases

Now that sounds interesting...I mean how boring of a topic can you write about? What exactly is a triple net lease anyway? For simplicity sake, triple nets are leases for commercial real estate where the tenant pays for the utilities, taxes and any maintenance on the building. The Landlord simply collects rent. Generally speaking, triple net tenants are highly rated, have great track records and are very dependable.

Well I was thinking the other day about residential real estate, an area that I am passionate about for the past twenty years. One of the downsides of residential rental real estate is that you are always dealing with leaky toilets etc. Many real estate investors simply do not want that hassle day in and day out. While this idea does not answer, completely, the triple net issue, I think it is intriguing. By the way this idea will not work for everyone, but it will work for some.

If you have a good equity position in your residential property and you want to sell it, rather than sell the home in a down market with a buyer who is using a bank, why not sell the property on a land contract. The land contract instrument works like any other mortgage document from a bank. As long as the buyer has a good down payment this is an avenue that can generate some good (triple net) income for the current homeowner.

Have you ever really looked at an amortization schedule on a 30 year note? Do you realize that most of the payment for the first 5 years is almost all interest, very little principal reduction takes place.

Some folks look at this and conclude that it is not for them because they want all of their money at once. However if you evaluate this option you may decide that you are willing to receive installments over a several year period and actually make more money than you would by selling the house outright. I can show you how this works in detail, but I think this is a great idea, especially in our current market.

Help Fund the Fringe

Hey Oconomowoc here is a worthy cause that we all can get behind. The drama department at our very own Oconomowoc High School earned its place on the world stage with their selection to participate in the "Fringe" festival in Edinburgh Scotland this August. Just to let you know how amazing this honor is the high school theater director must first be nominated for excellence by a university faculty member or a state or regional theater organization. Then once nominated the school must submit a detailed application. This year 1,600 schools nationwide were nominated and only 42 schools across the country were selected to participate in the "Fringe" . This is a huge accomplishment for our community and something we can all be proud of. What an honor!

The kids need our help with raising funds to go on this fantastic trip. If you can help out check out their website at http://www.fundthefringe.com/ or call Tom Klubertanz, the Oconomowoc High School Theater Director, at (262) 560-3100 x 3211. All donations are tax deductible through the OHS Mamas and Papa Inc.

Oconomowoc is the shinning star in Western Waukesha County!

What Are My Options?

The rate of foreclosures are up and families are struggling to make ends meet. Some unfortunate homeowners are forced into a horrible situation by no fault of their own. If you have found yourself in this spot there are options available other than foreclosure and bankruptcy.

Short sales are becoming more popular with struggling homeowners and banks. A short sale occurs when a bank agrees to take less for the mortgage than is owned at the time of sale. The sale price is obviously less than the balance on the mortgage note. For example; Mr. & Mrs Smith owe $200,000 on their mortgage, they need to sell the property, however the value of the home has declined and the property is now worth$180,000. The Smith's receive an offer for $175,000. The proceeds from the sale will not cover the first mortgage. The banks, while never preferring this option, will in some cases, agree to a short sale and thus forgive the $25,000 owed to them. This helps the bank in one fashion; their liability is now determined and fixed. Whereas if the bank takes the home through the foreclosure process their costs could be significantly higher.

Real Estate has now moved to the realm of mitigating the loss. Short sales generally have less of a negative impact on the credit score than a foreclosure does. Not all applications for short sales are successful, however, we have found them to be a way out for homeowners and banks -- a win win if you will. If you have questions about a short sale, feel free to contact me or let me know what you think of this blog.

Show Me The Money

The much talked about Stimulus Package that Congress worked on last week has a housing stimulus component to it. In that bill that President Obama is likely to sign tomorrow, there is a $8,000 credit available to first time home buyers. Here is how we think this is going to work out. The credit will be given to the homeowner who meets the following criteria. Any single family residence, that will be used as a single family residence qualifies for the credit. The credit is available to individuals with adjusted gross income of no more than $75,000 or $150,000 for a joint return. The purchaser or their spouse may not have owned a principal residence 3 years prior to this purchase. There is no repayment required of the credit for homes purchased between January 1, 2009 and December 31, 2009. If the home is sold within three (3) years of the purchase the credit must be returned.

So let's give an example of how this will work. If you have not owned a principal residence for the last 3 years and you decide to purchase a home that is $160,000, and you and your spouse make a combined income of less than $150,000 you are eligible for this credit up to $8,000. When you file your taxes and your refund was $1,000.00 you would receive back from the government a check for $9,000.00.

Do you think this is a good idea or a lousy idea? Let me know. I am interested in your feedback.

Lake Country-A slice of Heaven

I was just thinking the other day as I was working with this great horse, that Lake Country and specifically Oconomowoc, are really like a little slice of heaven. I remember when I was growing up as a kid that life seemed to be at a slower pace. We played outside (no video games), we invented things to do. People knew who you were and most things seemed to stay just the same year after year.

Well living in Lake Country is a little different that those 'fond memories' but when you think about it we live in a cool part of the county. There is so much to do out here. If you love horses, like I do, there are so many areas to trail ride with your favorite steed. If you are into biking (road bikes) there are so many back roads that you can ride for miles and miles on back roads or paved trails. If you just love the outdoors you can spend time hiking in one of the many county parks. Lake Country is truly unique and I love living here. The best kept secret though of our area are the people. Most are very friendly and willing to help out a neighbor or complete stranger. Sure there are the occasional self absorbed types who wouldn't lift a finger but they are not the norm. The friendly ones are and that is why Oconomowoc has been home for the past 20 years for our family.