Maybe I am missing something, but I fail to see why politicians are distinguishing between œWall Street and œMain Street. I am assuming this is the same as producers vs. consumers (or households). From what I remember of economics class, there is a total synergy and one of these sectors cannot survive without the other. So how would a failure on the producer side affect the consumer side? Just ask your grandparents and great grandparents who survived the Depression.In October of 1929, the stock market crashed. Many had heavily invested in the stock market which boomed through the œRoaring 20s (sound familiar?). There was a œrun on the banks where people wanted to withdraw their savings before the banks failed, so banks shut their doors. What happened then was a downward spiral: ·                 Jobs were lost as companies failed ·                 Stock portfolios continued to lose value, depleting the life savings of families ·                 Families out of work lost their homes and other possessions as they were unable to pay back loans ·                 Without money, the consumers stopped buying goods and services ·                 Companies that could not sell their goods and services downsized and then closedSo it seems naïve to me to say there is a difference between bailing out Wall Street and bailing out Main Street. We are in this together.I™d love to hear what you think!

Wow, now the federal government is working on a rescue package. It™s a huge risk, and only history will tell whether it was effective. Here in Wisconsin we were somewhat shielded from many of the poor lending practices that you read about in the news, but people who made thoughtful purchase decisions a couple of years ago may find themselves in a situation where they need to sell, or may be having problems making their payments due to unforeseen job situations. If they have equity, they may lose some of it. If they don™t have any equity, and if they can™t come up with the shortfall (including closing costs), they may need to see if their mortgage company will accept a œshort sale. This is where the bank will accept an amount for payment that is less than the amount outstanding on the mortgage balance.

On the surface, a short sale sounds like a win-win-win! Mortgage companies will often opt for a short sale rather than going through an expensive foreclosure procedure. The seller will get out from under a loan that they can™t afford to maintain, or from a house they need to sell so they can relocate. The buyer can often get a terrific price on a home. However, there are some pitfalls to be aware of.

First of all, in spite of the fact that mortgage companies stand to benefit from a quick process, communications seem to get bogged down in bureaucracy. Perhaps if I worked on the lending side of the business I would understand more about the reasons behind this, but I see many situations where the bank insists they have not received an offer and real estate agents and attorneys have proof they have sent in multiple copies. It also takes several weeks to review the seller™s documentation of hardship. In the meantime, basements can flood and cause damage and mold, vandals can access vacant properties, and other forms of deterioration can be left unremedied until closing.   Perhaps the industry is just slow in responding to this new, overwhelming, situation and have not been able to change their structure to handle it efficiently.

For sellers, they must be aware that they may owe income taxes on the forgiven amount. Their credit will also take a hit, though probably not as severe as it would in the case of a foreclosure. They also may not be able to continue making payments while the bank sorts out all the paper work, which might lead to foreclosure anyway. Finally, they could be asked to repay all or part of the shortfall after the sale.

Buyers must be flexible. Most transactions take about 30 days from the time an offer to purchase is accepted until closing. This is not the case in a short sale. In fact, the bank will have the final say in which offers (if any) get accepted. They could rescind this up until the actual closing, so the buyers would be well advised to keep another place to live if this is a primary residence. Many buyers, aware of this, shy away from properties that are short sales, which in turn makes it more difficult to sell the property even at a low price.

So what is the solution? Hopefully, the process will become more streamlined so the timeframe is shortened and buyers and sellers can move forward with the transfer of real estate. In the meantime, if you need to sell or want to buy on a short sale, be sure to work with a good attorney, real estate agent, or both. And stay positive “ there are some win-wins out there!

The annual Arbor Hills neighborhood July 4 picnic took place on … July 4!! Starting with a tricycle and bicycle parade, the neighbors headed to the Arbor Hills Park for games, food, visiting, and fun. Since my granddaughter was in town, of course I had to show her around!

The July 4 picnic is an annual event and all the neighbors are invited to participate. Costs are offset by the voluntary annual membership dues of $15, though non-members are also invited. After the picnic everyone is free to stay and play on the playground or find other places to celebrate the day and enjoy fireworks.

Thanks to neighborhood president Sheri Carter and all the people who helped out this year! If you live in Arbor Hills and would like to volunteer to help with some of the neighborhood activities, you can find contact  information at www.arborhills.org.

There are so many things going on now that it’s summer, it makes my head spin! I ran across a website, Madison Verve, which you can subscribe to. It has links to lots of things going on in Madison. Check it out and let me know what you think! The link is www.MadisonVerve.com

Moving to or  within the area? If you have school-aged children, you might want to check on the various school systems around Madison. Here are links to a few of them:

Madison: www.madison.k12.wi.us

Oregon: www.oregonsd.org

Verona: www.verona.k12.wi.us

Middleton: www.mcpasd.k12.wi.us

Madison has many active neighborhood associations as well, many with their own websites. Check out www.ci.madison.wi.us/neighborhoods

My son moved from Wisconsin to Tennessee recently, and was told all appliances were included in the home he purchased. Surprise – in that part of the country, refrigerators must not be considered appliances! Now for those of us here, that would be a strange thing to omit from a kitchen, especially if you have painstakingly worked to match everything. And who wants to move a refrigerator if you don’t have to?

So if you are moving to Wisconsin, rest assured you will probably get a refrigerator – and perhaps a spare one in the basement or garage!

I was talking with another agent the other day whose clients had more recently replaced their stove and refrigerator, but still had a dishwasher in a 1970′s color (Avacado Green anyone?) Ugh! She was debating replacing the dishwasher because, let’s face it, while the colors are coming back they definitely look different than they did several decades ago. I suggested she get a screwdriver and remove the front panel. I know I have had several dishwashers and the manufacturers often store other colored panels in the door. I recently just replaced my beige with a black panel, and it looks terrific – all it took was 10 minutes to swap it out and it looks new. So check it out!

        Perfect for the serious UW graduate student, this quiet setting is a great place to get away from it all! Enjoy the birds and the view of well-kept gardens and a park from the 2nd floor balcony. Snuggle up to the wood-burning fireplace on cold winter nights, knowing you will be well insulated from the cold with the new North- and East-facing windows. Newer kitchen appliances, 2 bedrooms with walk-in closets, and a full bath with access from the master bedroom, make this a steal for $109,900. Laundry facility in the basement next to the 1 1/2-car private garage add the convenience of not having to leave to do laundry. Private showings can be arranged by calling Janet Johnson at 608-695-1281.

Welcome to janet johnson’s Blog! This blog will provide you with valuable information, tips, and general insight into the real estate market in Madison.