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• , ' ' ' .*vV/ . , iV • V?V ' \ : . ' J' W Itu .' 1 * « »V. - • • ' ' ' ': i' < . . - ^ ' \/U ' - " ' •PMM /,; ; ' • .< ' ;:*v,;» This is the first segment of a four-part series on today's housing market as by McHenry laindealer reporter Anthony Oliver »F0R SALE « 1.2 ACRES ZONED B-l INQUIRE WITHIN MESER AMORE . ; v;: flf ' Sfe'V J •:<!: ; , . : h • - m ' ' tf&tx : • » , . : h • - m 'V V • V*H< \ ' H : • j " With a dramatic rise in interest rates over the past few months, realtors throughout the county have been forced to take a hard look at their chances for survival. As a result, signs like the above are not unusual. This one stands in front of the Wieser-Amore ft Associates office, 1618 N. Richmond road. The owners took their hard look and decided at least for the immediate future, it would be best to place a closed sign in the window. "We're going out of business paying our bills," Wieser said, "we might not be able to do that three months from now." ̂ STAFF PHOTO-ANTHONY OLIVER With the dramatic and recent increases in home mortgage interest rates, there has been an equally dramatic slowdown in the real estate business. David Gelwicks, of Essex and Costello Realty tin* McHenry, said, "Certainly business is slow, but I don't think the picture is as black as it has been painted." Gelwicks went on to say that for the last three or four years the market has been primarily a seller's market and that now the tide had turned to a buyer's market. "There is a large in­ ventory available -with a number of desperate sellers," Gelwicks pointed out. "And there are other methods than mortgages for financing a house. Although Gelwicks admitted that financing was tighter now than it had been for a long time, he said it had not com­ pletely dried up. "We may not be able to arrange financing in every case," Gelwicks said, "but in many cases we can." "Realtors have to be a little more creative," he went on. Gelwicks mentioned a number of different ways to finance a home. Federal Housing Authority (FHA) and Veterans Administration (VA) mortgage insurance is readify available, Gelwicks observed. In these two programs, the mortgage made by the financial institution is insured by the respective agency of the federal - Slowdown In Realty government. The government itself does not make the mortgage. Another McHenry realtor, Mike Wieser, of Wi^ser-Amore and associates, said that the "point system", where a certain number of discount points is paid by the seller of the property, discourages a lot of people from using the FHA or VA to get a mortgage. One "point" is one percent of the total mortgage value. In FHA and VA loans, no money actually changes hands but the seller of the property pays the points by accepting reduced proceeds. For example, if the mortgage was $60,000 and the discount points were set at five, the lender would discount the mortgage by five percent, or $3,000. The seller of the property Would get $57,000, instead of $60,000 and would, in effect, have paid the five points. Another option open to sellers is selling the property on contract. Essentially, selling property on contract is a postponement of the title transfer. A contract is drawn up between the seller and the prospective buyer which allows the buyer to take possession of the property, but the seller retains the title. Each month,the buyer would pay the seller a set amount of money, as set forth in the contract. After a set period of time, also specified in the contract, the buyer of the property would be obliged to pay off the balance of the purchase price. Theoretically, by the lime the contract expires, the buyer will have been able to arrange for more conventional financing - a mortgage. The contract itself involves two closings: the first, a downpayment at the signing and execution of the contract and the second, the balance of the purchase price at the expiration of the contract. When the second closing is made, the title to the property changes hands. Wieser said that land contracts "are risky" because the person selling the land usually wants to "cash out" and do something else with the money -- like buy another house - and, there is no guarantee that the buyer of the property will be able to get a mortgage before the contract' ex­ pires. Gelwicks also men­ tioned the "assumption." An assumption is an agreement between the seller, the buyer and the lender whereby the buyer of the property assumes i, - % - , the balance of the seller's mortgage. "Banks are not real crazy about this," noted R i c h a r d D o h e r t y , president of RDG Realty in McHenry. But, Doherty said, an adequate down payment will keep the buyer from walking away from his investment. One of the most significant problems with an assumption is a matter of simple economics. The lender is not likely to let a buyer assume an 8 or 9 percent mortgage when the going rate is 13 or 14 percent. Doherty said that sometimes deals can be worked out if the buyer is willing to assume the balance of the seller's mortgage at the current interest rate. Gelwicks pointed out that it is very important for the seller who is considering an assump- (Continued on page 20) MCHENRY &toarfc Winning flttopaper 19 SERVING THE CHAIN-O-LAKES REGION SINCE 1875 Illinois Press Association Newspaper Contest TUESDAY; HOVfeMBER 20, 1979. VOLUME 104 NUM1ET33 ---m--- 1 SECTION 22 PAGES 20• McHenry Store Employees «• t View Shoplifting Problem "Purloin, lift, boost, palm, filch, score, the five-finger discount" - thfese are all synonyms of the same thing: stealing. In an attempt to combat the increase in shoplifting and theft that typically takes place during "the golden quarter" - October, November and December ~ about 30 McHenry retail employees and managers met with police and security representatives to tackle the problem. "Really this is a war, between you and the shoplifters," Ernest Smith said. Smith is the chief of security for J.C. Penney and a former Waukegan police officer. _ His talk last Thursday at the McHenry Country club was the second of a two- series program on white collar and credit card fraud, and on store security. The seminar was sponsored by the McHenry Area Chamber of Commerce and" the McHenry Police Officers association. Smith told the retail employees to watch women with large purses or paper shopping bags that open when they are standing on the floor and close when they are picked up. "Watch out for guys with large coats, especially of heavy material that won't show something un­ derneath," Smith advised. "In all my years of ex­ perience, I have found that it is women, the teenage girl and the 40-year-old woman, who will try to con you the most," Smith said. Some people will walk around a store with an ad­ vertising supplement rolled and sticking out of their purse or pocket, Smith noted. This forms a perfect funnel and small objects will slide straight down into the purse or pocket. "Then they will take the supplement out, look at it and say 'Naw, I don't want to buy anything.' Of course they don't, they've already stolen it," Smith said. Smith cautioned the employees to watch for "women who walk in slim, and walk out pregnant". "A woman can fit three leather coats into the "womb." "Men have sewn fish hooks into heavy coats to hang shirts and sweaters (Continued on page 20) Young Bicyclist Killed It's almost Thanksgiving and you've just started to make out that Christmas list. You promise yourself you'll absolutely finish by turkey day. And then? Where to start out on the actual shopping mission. The first impulse, unless snowflakes are whirling around the next corner, is some big shopping center. Whoa!. Let's back up. Even if the snow weren't blowing, there's a better way. If you wanted your lawn mowed, wouldn't you hire the boy next door if you knew he could do the job? And if you had something you treasured and wanted to share it, wouldn't it be with a friend? , Well, let's give some more thought to that shopping. Why not ask your neighbor who runs a business to do the job for you? Why not share your holiday shopping with someone you know - with a friend? Oh, we've heard all the excuses before - someone doesn't shovel his sidewalk and someone else has a cleric who doesn't flash a smile when you plunk down your money. And you're probably right. So avoid the shiftless storekeeper who doesn't make shopping safe. But don't blame a cleric, and certainly not the employer, for one sales experience that didn't come up to expectations. It'll happen anywhere occasionally. Try to remember this is where you live and enjoy the benefits of a prosperous business community.*These store owners are the people who dress up the community for the holiday season. They are largely responsible for summers Fiesta days. And they pay taxes like the rest of us for schools and roads, and much more. For the most part, they are sincerely interested in how you are served because you, the shopper, make their existence possible. They take pride in doing a good job because they know that's the only thing that will make you return. Most of us have given the big showing center a try. But admit it, the hassle of battling crowcb, too often in a rude shopping atmosphere, with an impersonal attitude on the part of clerks, isn't what we expect, or want. Besides, loyalty is a most rewarding experience. So give it a try this Christmas season. Walk into your McHenry stores and tell them what you're ting for. We'll just bet most of them will sastisfy your tand return your holiday spirit with some to spare. K AF Three McHenry county residents, a 13-year-old youth and two men, were killed in separate weekend traffic accidents. John J. Bulow, 13, of Hebron, was killed when he was riding his bicycle on Greenwood road just north of Regner at about 4:30 p.m. Friday. According to the police report, Bulow was struck by two automobiles. The first car was driven by Robert J. Nickels of Hebron, who told police that the bicycle turned in front of his car. The second car was driven by Linda J. Schuberth of Woodstock. According to the report, Bulow had been riding in the southbound lane of Green­ wood road when the accident occurred. The youth was transported to Memorial hospital in Woodstock where he was pronounced dead. The investigation into the accident is continuing. At about 12:30 a.m. Sun­ day morning, the Sheriff's police were called to the intersection of Buhl road and Route 176 to investigate a traffic accident. It was determined, ac­ cording to the report, that a car driven by David Lang of Waukegan had struck another vehicle and had left the scene. The driver of the other car, Michael D. Lucchesi, 30, of Cary was pronounced dead (Continued on page 20) McHenry Man Charged In August Death Near City ,:• •• : : £>3Si I f|| a .« ' mm A McHenry man who was shot in the head last August has died and the man who police Allege to have shot him has been charged with murder. John L. Ellis of 2439 S. River road, McHenry, has been charged with the Aug. 10 shooting of 37-year-old Joseph W. Miller. A five count complaint - which includes three counts of murder, one count of voluntary manslaughter and one count of involuntary manslaughter - was filed by State's Attorney Theodore Floro before 19th Judicial Circuit court judge Henry Cowlin. Ellis was originally charged with aggravated battery and attempted murder after sav he shot Miller in the head with a .38 caliber pistol. Those charges have been dropped. Ellis' bond was increased from $80,000 to $100,000 by Judge Cowlin and Ellis was released on his own recognizance bond after hearing evidence from the defense. Hie court date was set for Jan. 21, 1980. Mayor Throws Hat In Political Ring Mayor Joseph Stanek of McHenry officially jpuft- nounced his candidacy for Representative to the General Assembly Thur­ sday, Nov. 15. He stated: "I am a con­ servative as my friend Bruce Waddell was. I believe government has become too 1nr0<». nverreffulales our lives, lacks direction and is unresponsive." He further states: Being mayor of a fine, progressive city for seven years has provided me with the ex­ perience and background to be a knowledgeable, forceful representative of the people In lh#» 33rddistrict " IT'S BEGINNING TO LOOK A LOT LIKE CHRlSTMAS-as Department of Public Works employee Gary Gilpin is shown putting up Christmas decorations on telephone and utility poles throughout the City. This particular shot was taken Friday afternoon near the intersection of Richmond road and Elm street STAFF PHOTO-ANTHONY OLIVER Pupil Medication Policy Becomes School Problem Building principals of Elementary School District 15 sought guidance from the board of education on policy for pupil medication at their regular meeting Tuesday Nov. 13. Board president Tim Althoff advised prin­ cipal John Nilles, who was investigating the situation for the schools, that the board would consider the recommendations and offer revisions to the health service policies at the next meeting. Dr. Richard Farmer, district superintendent, asked concerning the problem with medication, "Can the schools do what . they want to do without a change of policy"? This would be the board's op­ portunity to consider if they wanted to take any action, he advised. Nilles said that principals, staff members, and the nurses were concerned over the risks of their ad­ ministering medicine (given to them by parents) to designated pupils. Nilles said that at his school', Hillside, they had 20 bottles of medications in the office for which they had assumed responsibility. Worries were that wrong medicine could be given, need to keep track of the pupil due for medication, and assurance (Continued on page 20) / 'HM!