The "F" Word

Today, we begin a series of blogs about the "F" word. I'm talking about foreclosures, of course! What did you think I meant?

According to RealtyTrac.com, a website that follows foreclosures, and, for a fee, allows you access to that information, there was an 81% increase in foreclosure notices from December, 2007 to December, 2008. That is an incredible statistic, isn't it? An 81% increase in anything is enormous number. Think about it, an 81% increase in your grocery bill or time spent commuting or (heaven forbid) your weight is mind boggling!

But what does this statistic really mean? We are going to examine that, along with other issues relating to the effects of foreclosure in our hometown. There is no way we will avoid the scourge of foreclosure in our neighborhoods, but how are our Villages and school districts are planning for it will determine how we will handle the inevitable. We intend to explore this in future blogs.

But, for now, let's take a look at the actual foreclosures in Wilmette, Kenilworth, Winnetka, Glencoe and Northfield.

When we use the term foreclosure, it can mean one of three processes. There is preforeclosure: during this period a homeowner fails to make timely mortgage payments and is sent a notice of the lender's intention to foreclose. A Lis Pendis, a written notice is often filed in the Cook County Tax Assessor's Office, alerting those who may be interested in purchasing the home that they will have to obtain the Bank's approval as well as the seller's in any offer to purchase. The homeowner usually stays in possession of their home during this time, and will often attempt to modify the terms of the loan.

If the loan is not modified, then there will be an Auction or Sheriff's Sale of the property. This is the next phase of what we commonly think of as foreclosure. While anyone can buy the property, usually for the value of the outstanding lien (or mortgage), most often, the lender will buy its' own asset. During this time period, the homeowner is usually required, by law to move out of the home.

Finally, there is REO (real estate owned) or Bank owned property. The lender owns the property outright, and is responsible for upkeep, management and payment of taxes on it.

The different phases of foreclosure make a difference when we evaluate their effect on our hometowns. But, for the purposes of the following, foreclosure will mean all three phases.
At the present time, the following homes are in foreclosure: Wilmette, 36; Kenilworth, 2; Winnetka, 17; Glencoe, 20 and Northfield, 6. (source: Trulia.com, Zillow.com) These numbers, while unfortunate do not connote the same sense of catastrophe as the 81% statistic used by Realtytrac.com. Again, it pays to look closer at the statistics, rather than rely on the headlines.

It is a tragedy to be foreclosed upon, there is no doubt about it. In these situations, individuals lose much more than their homes. No one willingly wants to paticipate in this process. Many times there are life altering events, such as illness, death or divorce that precipitates the loss of a home. But, our community also suffers a loss when our friends and neighbors have their homes foreclosed. We intend to explore this in future blogs and help identify sources of assistance if you find yourself in this situiation. Stay tuned.

Make My Day Moment: for those of you who know this chick and my "second" son, Dan, I am proud to report that he was made squad leader of his Marine Boot Camp Platoon. He is the top shot expert on the rifle range, 1st class physical fitness and swim qualification 2 (the highest levels attainable in Boot Camp. The few, the proud, the marines!

Up with downsizing!

       Mary Umbergers column  (Chicago Tribune, Sunday, Jan. 11, 2009) noted a discernible trend among baby boomers and empty nesters.  That is, the stated desire to downsize their homes.  But this time, they actually mean a move to a smaller dwelling, rather than making a lateral or upsize move to more spacious accommodations once the kids have left home.  What people had been referring to as "downsizing", was, in reality, (and illogically), often a move to a bigger, more expensive home.  

      But that seems to be changing.  The economic roller coaster ride that we have all been on for the past year is certainly one of the driving forces behind this desire for "true" downsizing. .   The cost of maintaining a huge home with an equally huge mortgage may not make sense if there is college tuition to pay. 

       Another factor in this shift in thinking might be the   "shame of affluence".  Much of  the current economic crisis (i.e subprime mortgage mess)  is  attributable to greed.  People are reticent to flaunt their wealth for fear of being lumped in with those guys from Wall Street.  Since, our homes are the most obvious symbol of our material worth, a more modest presentation seems appropriate.

     But the chicks think there's another reason for the change.  One that is driven by positive beliefs, rather than negativity.   We think that people are becoming more aware of their use of our earth's precious resources.  The green movement, once equated with a once a year observance, Earth Day has now permeated into our daily lives.  

There is a deliberate consciousness about using less  resources.  We see it in the increased use of recycling, paper over plastic at the grocery store, or better yet, bring your own reusable bag, and bicycling or walking whenever possible.  There are recognized health benefits associated with a move towards green.  Less air pollution and toxins means that we feel better and have fewer allergies.  Finally, the trend towards purchasing our food from local growers and organically grown if possible is one more way that people are adopting a greener lifestyle.

There is no more dramatic way to reduce your carbon footprint than by true downsizing.  Less electricity, gas and water will be consumed in a smaller home.  You will have less garbage to contribute to our landfills. We believe that people in our hometown are looking for ways to use sustainable materials in their homes too.   

With the price of builder's lots declining in value, it is now possible to purchase and build your own green home on the North Shore.  There are several neighborhoods that come to mind that are particularly suited to this end.  In particular, the presidential streets in Glencoe, the tree named streets in Winnetka and many neighborhoods in west Wilmette.  Instead of 6 bedrooms with 6 plus baths, you build a home that has 3  bedrooms and 2 plus baths.  And you can use bamboo flooring, install solar panels or tankless water heaters or any other of sustainable products that you desire. 

The advantages of building a green home in one of these neighborhoods are plenty.  You can have new construction, you will actually use all of the rooms in your home, rather than the fraction that you presently use.  There are builders willing to build green homes on the North Shore. You'll likely be within walking distance of public transportation (to Chicago or Ravinia) and the wonderful farmer's markets.  Your home will fit in perfectly to these charming neighborhoods.  The best part of this plan is that you will be able to truly downsize and remain on the beautiful North Shore!

What to you think?  I'd love to hear from you.  Post a comment or send me an email.