Real Estate Changes due to the Coronavirus

[Patrice Boenzi]

These are difficult times and it seems things are changing quickly. Under the Stay Home order Realtors are considered essential employees. However, not all Realtors are showing properties and operating at full throttle. 

The DECO has added new language to what we can and cannot do. Did you know, in Illinois, we cannot show a property with a tenant in place EVEN if the owner and tenant give us permission? No open houses, no more than 4 people in a property at once and we have to use the 6' social distancing while there. Also, some home inspectors are not allowing anyone in the property with them during the inspection. Some appraisals are being done as "drive-bys", some closing are also being done as "drive-bys" and most Title Companies will only allow the signer into the office. 

Do you have any questions? I would be happy to try to answer them, if I can. 

Here is a blurb from the Illinois Realtors President Ed Neaves

Are real estate open houses and showings permitted? According to DCEO, it depends.

• Open houses are not permitted.
• Showings of occupied rental properties are not permitted.
• Showings of vacant or owner-occupied units are permitted if necessary and scheduled in advance (virtual showings are preferred) but limited to no more than 4 people.

April 1, 2020

[Michael Facchini]

@Patrice Boenzi and @Chance Badertscher, that's some GREAT info above - thanks for sharing!  On the lending side of things, whether you're focusing on a buy or sale, be on the lookout for curve-balls as well.  The mtg industry and its various layers underwent many rapid changes over the month of March - one of the craziest and most concentrated period of chaos I've seen in my 19 years to be candid :-)  Rate volatility, programs being shutdown overnight, guidelines restricting (debt-to-income ratios, minimum credit scores, reserve requirements, etc.).  The sky appeared to be falling, and like most industries, the mtg world was trying to figure out what was what from one day to the next.  Now, I don't want to scare us - the dust is starting to settle, but there still remains some heavy liquidity pressure on lenders and servicers, that could create some financial issues for many of them.  Those that thought a few steps ahead are going to weather the storm just fine, and fortunately we expect things to bounce back relatively quick (compared to most other crises).  That said, as an agent/atty/buyer/seller, just have to dive into the financing details on that buy or sale a little more these days.  The higher the risk profile, lower the down payment, and further we get "outside the box", the more we need to question whether there is a loan product to fit that scenario.  And on a somewhat related note, as property owners and borrowers, if we have the means to make our mortgage payments and put food on the table, it's encouraged you do so.  All the "forbearance" talk has many owners/borrowers considering "skipping" some payments, even if they're gainfully employed and/or have substantial savings.  Beware.  There is no free lunch.  That forbearance is just delaying the payment in most cases (and best case) by pushing it to the end of the loan, and this costs you because you're altering the amortization schedule of the loan.  So, it's not free.  In addition, there's a question/suspicion that perhaps those that decide to take advantage of the forbearance option might have that flagged on their credit.  Not as a late, but as some kind of note - which could play into refinance and purchase options down the road.  "Could" is the operative word.  All up in the air right now.  Certainly if you've lost your job, these Covid forbearance offers are worth considering - you do not want to lose your home.  But those that have the ability to pay should look into this further before thinking we get a free lunch.  Heck, being locked in these days, I've had too many lunches and snacks...I need to cut down!