Will Cook County get a Land Bank?

According to research conducted by an advisory committee appointed by the Cook County Board President, 80 government bodies in 23 different states have a land bank.  Last month the Cook County Board President is recommending that Cook County form one too.

What is a land bank?  In this context, a typical land bank is a quasi-governmental group that buys (or receives via donation), maintains, manages and then eventually sells off properties that were otherwise serving no real purpose.  Usually the properties owned by the land bank were either foreclosed or sold at scavenger sales; often they are vacant and seldom have they been maintained.

If Cook County's land bank is formed, the advisory committee hopes it will deal with 850 properties in its first year.  This estimate assumes that the land bank would purchase 30% of the properties with an initial $1 million start-up investment, and that 70% of the properties would be donated by banks.

The Cook County Board is considering the land bank proposal this year.

Radon Revisions Effective January 1, 2013

In 2012, the Illinois state legislature made some changes to radon-related items that took effect on January 1, 2013.  Here are the basics:

1)  Licensed day care centers, licensed home day care facilities, and licensed group day care homes must be tested for radon at least once every three years.  The radon test report must be posted in the facility, and copies must be available to parents and guardians upon request.

2)  The Radon Disclosure form (given to buyers) has been changed.  Specifically, sellers are now required to give buyers the most current records of radon on the property, as opposed to "all available" records.  Attorneys, real estate agents, and sellers should take care to use the new form.

Illinois Provides Funding for Military Homebuyers

Recently, Illinois invested more money into Welcome Home Heroes.  The $5 million cash injection will help military families and veterans buy homes in the state.  In addition to active military members and veterans, the program is also available to Illinois National Guard members and reservists.  To qualify under this program, you must be a first-time home buyer unless you are a veteran.

There are income limits as well.  If you are buying a home in Cook, Lake, DuPage, Will, McHenry, or Kane counties, then your household income must be less than $90,960, assuming your household consists of 1-2 people.  If your household consists of 3 or more people, your household income must be less than $106,120.  All other Illinois counties are eligible too, although they each have their own income limits.

Of course, there are limits on the purchase price as well.  If you are buying a single-family property in Cook, Lake, DuPage, Will, McHenry, Kane, Kendall, Grundy, or DeKalb counties, the home must cost less than $378,461.  All of the other counties have their own purchase price limits, but they are all less than $378,461.

If you meet the various requirements and qualify for a Welcome Home Heroes loan, here's what you get:

1)  A 30-year fixed loan.  As of today, the interest rate is 3.725% for conventional financing and 3.25% for FHA or VA programs (subject to change).
2)  A forgiveable loan of $10,000 for closing costs and down payment assistance
3)  A special mortgage credit certificate to help save more money than the traditional itemized deduction for interest on your income taxes

If you feel you might qualify, it's worth looking into!

2012 Residential Real Estate Round-Up

The National Association of Realtors recently profiled home buyers in 2012.  Here are some tidbits:

In 2012:
1)  39% of homes were purchased by first-time home buyers.
2)  Married couples purchased 65% of all homes bought.
3)  Married couples sold 76% of all homes sold.
4)  The average seller had lived in his home for 9 years at the time he or she sold it.
5)  The average home buyer was 42 years old.

If you are trying to sell your home, perhaps this information can help you cater to the potential buyers out there!