Before you begin to shop for a new home, you should set up a time to talk to a HomeQuest Mortgage Consultant so you can figure out how much you can afford. This will put you in a better position as a buyer. That’s when it is important to understand the distinction between being pre-qualified for a loan and pre-approved for a loan. The difference between the two terms will be crucial when you decide to make an offer on a house.

The Contract for Deed is a common method used by low income persons to purchase a home. A buyer under a Contract for Deed has fewer rights than a buyer who has obtained a mortgage loan. A home buyer should always talk with a lawyer before signing a Contract for Deed. Search the "Helpful Organizations" section below to find free legal help. 

Most Contract for Deed sales require only a small down payment. The buyer agrees to pay the seller or the seller's real estate agency the total sales price plus an amount for interest monthly over a period of several years. Only after the final payment will the buyer receive a deed and full ownership.

Should the contract for deed be in writing?

A buyer must get a written contract, which is signed by both buyer and seller and which has all the terms agreed to by the buyer and seller. Without a written contract, the buyer will not be able to enforce the agreement if the seller refuses to perform his or her part of the agreement.

Should I record the contract?

Even if the contract states it cannot be recorded, every contract for deed should be recorded in the county in which the property is located as soon as possible in order to protect the buyer's interest.

Who is responsible for repairs?

The buyer of the home is responsible for making all repairs after the sale of the property. The seller may be required to repair certain problems in the home that existed before the purchase date if:

• The seller has agreed to make the repairs;
• The seller knew about the defects from city inspections and does not tell the buyer; or
• The seller is guilty of fraud or misrepresentation.

Agreement To Make Repairs: Sometimes a seller agrees to make repairs. If the agreement is in the Contract for Deed, the seller can be forced to do the repairs. Always get it in writing.

Previous Inspection: If the city inspected the house before and found violations of a city code, the seller must tell the buyer about the violations. Many houses have never been inspected. If the house was inspected, and the seller does not tell the buyer about problems that were found, the buyer can call off the contract and get part of his or her money back.

Fraud and Misrepresentation: If the seller of a home makes statements about the condition of the home which are untrue in order to convince the buyer to purchase the home, the buyer may be able to cancel the contract or force the seller to repair certain defects. A buyer should always make sure that the seller's statements about the condition of the house are included in the written contract.

Who is responsible for real estate taxes and homeowner’s insurance?

The buyer of a home must pay for real estate taxes and homeowner's insurance on the property after the sale is closed. Sometimes the seller owes back taxes. The buyer should check to see if any back taxes are owed. If there are unpaid back taxes, the Contract for Deed should say who will pay them.

The buyer should make sure who will receive the real estate tax bills and homeowner's insurance bills and make sure that these are paid when due.

If the buyer is paying the real estate taxes and homeowner's insurance by an escrow account, the monthly payments to the account will increase each year, as costs increase.

How can I prevent the loss of my home?

A buyer who receives a notice of foreclosure or a court summons should contact a lawyer as soon as possible.

If a buyer, under a Contract for Deed, fails to make the payments required by the contract, the seller can declare an end to the contract and bring a court action to evict the buyer from the house. The seller will send, by mail, a written 30-day notice of ending the contract before the court case.

If the buyer owes less than three-fourths of the purchase price, the court must allow the buyer at least 60 days and may allow up to 180 days to pay the seller the amount needed to bring the contract current. If the buyer pays the required amount within this period, he or she will get contract rights back and he or she will be able to keep the house. Even if the buyer owes more than three-fourths of the purchase price, the court may give up to 60 days to pay the amount and restore the contact rights.

The average interest on a 30-year fixed mortgage dipped to a new record low of 4.57 percent this week — down from 4.58 percent a week ago, according to Freddie Mac, which began tracking rates in 1971.

Still, the low rates may not provide much of a boost for the housing market because many people do not qualify for new mortgages or have already obtained loans at low rates this year.

Source: Indianapolis Star (07/09/10)

Absolutely adorable!!! Welcome to this 2 bedroom, 1 full bath ranch home featuring hardwood flooring in the living room, bedrooms and hallway. Kitchen has oak front cabinets and tile flooring. Bath features whirlpool tub. Furnace and A/C new in 10/09 with a 10yr extended warranty. Gas water heater new in 5/10. House and garage roof new in 6/04. Other features include newer 5' fence, B-Dry Dewatering System, attic storage with drop down stairs, water softner-owned. $78,500

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Some home owners are finding themselves in the awkward position of wondering whether they should appeal a tax assessment because it came in too low.

Many communities are reassessing in light of declining values and the amount of the reduction can be a shock to home owners who fear that it reflects an equal decline in market value. In many cases, though, that's not true, say real estate practitioners.

They explain that tax assessments are done on thousands – even millions – of properties and each assessment can reflect a variety of factors unrelated to market value, include owners’ age, military service and health. As long as it doesn’t have factual errors in room counts, square footage, etc., they advise not worrying about it.

Or better yet, if it is a really dramatic drop, consider asking the lender for a loan modification or restructuring.

Source: The Wall Street Journal, June Fletcher (06/30/2010)

Outdoor kitchens continue to be one of the hottest trends in home décor, but not all of them are created equal.

Here are some things to consider when evaluating the safety and durability of this attractive yet vulnerable feature:

• Is there adequate ventilation? Extensive outdoor cooking spaces should be carefully designed to keep smoke and odors away from dining spaces.
• Was the installation done by licensed and insured installers? If something does goes wrong — even years later — these professionals will stand behind their work.
• Are the cabinets, countertops, and appliances really weather proof and likely to hold up?

Source: The Plain Dealer (Cleveland, Ohio), Roxanne Washington (07/01/2010)

2109 W Ayres, West Peoria

Need more space? This 1.5 story home is a beauty!!! 4 bedrooms, 2 full baths, some hardwood floors, partially finished basement. You will love the new kitchen and the 24x24 garage. Fenced yard, front white vinyl picket fence. Newer driveway. Great curb appeal!! All sizes and measurements are approximate and not guaranteed.   $109,900

Call the Jodi Lemkemann Team @ 309-303-1000!!!

Online foreclosure marketplace RealtyTrac reported today that homes in foreclosures accounted for 31 percent of the residential sales in the first quarter of 2010. The average sales price of these properties was nearly 27 percent below the average sales price of properties not in foreclosure.

RealtyTrac expects foreclosure discounts to stay between 25 percent and 30 percent as lenders steadily release foreclosures. The average price of foreclosed properties is $171,971.

Overall, foreclosures are down 14 percent in the first quarter compared to the fourth quarter of 2009. They are down 33 percent from the peak during the first quarter of 2009.

Source: RealtyTrac and Bloomberg, Dan Levy (06/30/2010)

After a close brush with a deadline that could have impacted tens of thousands of home buyers, the U.S. Congress last night passed an extension of the Home buyer Tax Credit closing deadline.

The extension is included in the Home Buyer Assistance and Improvement Act (H.R. 5623) and will prevent as many as 180,000 home buyers from losing their eligibility for the tax credit through no fault of their own. These households had home purchase contracts pending as of April 30 and had until June 30 to close on their purchases to claim the federal tax credit. Under the legislation that passed last night, these households now have until September 30 to close.

The NATIONAL ASSOCIATION OF REALTORS® supported extension of that closing deadline because buyers are experiencing delays in getting their financing closed. The delays are the result of the large number of transactions that are short sales, which can take a long time to close, and the rush of transactions lenders are processing from buyers submitting contracts before the April 30 contract deadline.

The legislation, which now goes to President Obama for signature, is designed to create a seamless extension of the closing deadline; there will be no gap between June 30 and the date the President signs the bill into law.

NAR worked closely with congressional leaders on both sides of the aisle in supporting lawmakers' passage of the legislation, which the association says will help provide additional stability to real estate markets across the nation.

Separately, the U.S. Senate also last night passed the National Flood Insurance Program Extension Act of 2010 (H.R. 5569), which extends the National Flood Insurance Program until September 30. This will allow home purchases in the 100-year floodplain to move forward. The House passed the bill last week.

When signed into law by the President, the bill, which will apply retroactively, will cover the lapse period from June 1 to the date of enactment of the extension. Without flood insurance, households buying homes in the 100-year floodplain cannot obtain mortgage financing.  

More information on both pieces of legislation is at REALTOR.org.

Source: NAR

We have a rental available in Dunlap schools.  All brick home.  3 bedroom, 2 ½ bath.  Living room / Dining room. Family room . Large unfinished basement. Fireplace in Living room. In floor heat in basement and garage. Central Air.

No Pets, Deposit is one month’s rent.  $1650.00 per month

Please contact Jodi Lemkemann with any questions.  309-303-1000