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Recent Blog Posts
Illinois Takes Top Spot in Number of Foreclosures in Q3 2024
While the nationwide foreclosure rates are down for the third quarter of 2024, they are up in Illinois. In fact, Illinois had the highest foreclosure rates for the third quarter of 2024, with one in every 904 homes having a foreclosure filing. Florida, Delaware, Nevada, and Indiana were the other four states among the top five states with the highest foreclosure rates.
Despite these high numbers, Illinois foreclosure rates are significantly lower than they were in 2022, when about one in every 385 housing units received a default notice, had an auction scheduled, or was repossessed by the lender. In 2022, these record-high foreclosure rates were attributed to inflation, rising interest and mortgage rates, and the second-highest property taxes in the nation.
What Are My Rights During the Foreclosure Process in Illinois?
When a property owner has failed to keep up mortgage payments, the lender may initiate a foreclosure process to reclaim the real estate. This can be an overwhelming and even humiliating experience for a homeowner, who is typically already in financial distress. However, there are laws and regulations concerning foreclosures that give homeowners certain rights during the process. This article will discuss some of those rights, but the best resource for your legal rights in foreclosure is an experienced Illinois real estate attorney.
How Does the Foreclosure Process Work in Illinois?
If you miss a mortgage payment, the lender will likely contact you about the missed payment and you may face late fees. After 90 days, the lender will notify you that your mortgage is in default. After several missed payments, the lender may notify you that the loan is being "accelerated," which means the lender is exercising its right to demand the entire outstanding loan amount by a certain date. If you are still in default after 120 days, the lender may then file a lawsuit to begin foreclosure and serve you with a summons along with a description of your rights and ways to avoid foreclosure.
How Does a Short Sale Differ from a Strategic Default?
For some homeowners, owning property can become a financial burden. This is especially true in tough economies when real estate markets tend to plummet. When the value of a house falls, its owner can be placed in financial distress, particularly if he or she still has an outstanding mortgage. In some cases, the owner’s mortgage can be more than the property’s value.
A homeowner who is in financial distress may choose one of several options to alleviate his or her burden. Two of those options: a short sale and a strategic loan default. Consult an Illinois real estate attorney to determine the right option for you.
What Is a Short Sale?
A short sale is when a homeowner sells a property for less than what is owed on the mortgage. For example, a homeowner might owe a million dollars on a house and sell the property for $850,000. The money from the sale is used to cover most of the mortgage, with $150,000 remaining outstanding. This outstanding debt is referred to as a deficiency. In some cases, the lender may forgive the deficiency, while in other cases, it remains the homeowner’s financial obligation. Either way, short sales are done with the approval of the lender.
How Can a Living Will Prevent Family Conflicts?
Creating a will or trust can be an unsettling task because it often involves planning for a day when you may be incapacitated or deceased. It requires making major decisions about what to do with your finances, assets, and even medical care should one of those events occur.
However, setting up a will or trust can be a smart move for many reasons, one of which is that they often help reduce conflict among family members. A living will is particularly useful in preventing heated disagreements within the family upon a member’s incapacitation or death. This article will discuss what a living will is, how it can prevent family conflicts, and how to contact an Illinois living will attorney who can draft the right agreement for your needs.
What Is a Living Will?
A living will is a legal document that sets out how a person wants his or her healthcare to be managed in the event of incapacitation. It applies specifically to someone who suffers from a terminal condition, meaning that any life-saving treatments will only lengthen the dying process. It includes the healthcare preferences of the testator — the person who created the will — for when he or she can no longer communicate and cannot give informed consent to medical treatments.
What Does Consent Foreclosure Mean?
If you are facing foreclosure, you know the weight of the stress and uncertainty it brings. While exploring your options, you may have come across the term "consent foreclosure." This lesser-known alternative to traditional foreclosure could offer a way to get through your current challenges. An Illinois lawyer can explain what consent foreclosure is, how it works, and whether it might be a suitable option for your situation.
What to Know About Consent Foreclosure
Consent foreclosure is a legal process where a homeowner agrees to voluntarily give up his property to the lender without going through a traditional foreclosure. This option is available in Illinois and can offer a quicker, less costly alternative to a standard foreclosure proceeding. In a consent foreclosure:
What to Do if a Home Seller Didn't Disclose Defects
Buying a home is a significant investment, and discovering undisclosed defects after the purchase can be frustrating and costly. Sellers are required to disclose known material defects in the property. However, if you find yourself in a situation where the seller failed to disclose issues, there are steps you can take to protect your interests. An Illinois lawyer can help you determine if you have a potential case.
What to Know About Seller Disclosure Requirements
In Illinois, the Residential Real Property Disclosure Act mandates that sellers provide a disclosure report to potential buyers. This report should include information about material defects that the seller was aware within the home or on the property. For example, a seller must disclose if they are aware of recurring basement flooding or if there are cracks in the foundation that they have attempted to repair. Some common areas that need to be disclosed include flooding, foundation or structural issues, roof defects, electrical or plumbing problems, and the presence of toxic substances such as radon or lead.
Why Your Lender Probably Wants to Avoid Foreclosure
Many homeowners facing financial difficulties assume their lender is eager to foreclose on their property. However, the reality is often quite different. Lenders typically view foreclosure as a last resort, preferring to explore other options that can benefit both parties. An Illinois lawyer can help you understand this so you can negotiate more effectively and potentially find alternatives to foreclosure.
The Hidden Costs of Foreclosure for Lenders
Despite what you may have heard in the past, foreclosure is often an expensive and time-consuming process for lenders. The legal expenses alone can be substantial, including court fees, attorney fees, and other related costs. Once a lender takes possession of a foreclosed property, the lender is responsible for its upkeep, including property taxes, insurance, and repairs. This ongoing maintenance can quickly become a financial burden.
How to Transfer a Property Deed After a Divorce
Transferring a property deed after a divorce can be difficult for any homeowner, and doing so because of a divorce can make the situation emotionally challenging. However, remember that you can get through this transition successfully with the right guidance and understanding of the process. An Illinois lawyer can guide you through the steps necessary to transfer your property deed following a divorce.
Do Not Delay the Property Deed Transfer
One of the worst things you can do after your divorce is finalized is delay transferring your property deed. In Illinois, you must act promptly to ensure that the property ownership aligns with the terms of your divorce decree. The reasons why timely action is important are the following:
- Legal Compliance: Failure to transfer the deed as specified in your divorce decree could result in contempt of court.
- Financial Protection: Delaying the transfer could leave you financially liable for a property you no longer own or have rights to.
When Should You Consider a Mortgage Loan Modification?
Homeownership is a significant achievement, but it comes with financial responsibilities. Sometimes, circumstances change, making it challenging to keep up with mortgage payments. If you find yourself struggling to meet your mortgage obligations, a loan modification might be a viable solution. An Illinois lawyer can help you explore when and why you should consider a mortgage loan modification.
A Loan Modification Can Help If You Are Behind on Your Mortgage
A loan modification is a process where the terms of your existing mortgage are altered to make payments more manageable. This option becomes particularly relevant when you are falling behind on your mortgage payments or anticipate financial difficulties in the near future. Benefits of a loan modification include:
- Lowered monthly payments
- Reduced interest rates
- Extended loan terms
How to Handle Trust Administration Disputes Effectively
When it comes to trust administration, disputes can arise for various reasons. As a trustee or beneficiary, make sure you know how to handle these conflicts effectively to ensure the smooth operation of the trust and maintain healthy relationships among the parties involved. An Illinois lawyer can help you with some strategies for navigating trust administration disputes.
Understand the Root Cause of the Conflict
The first step in resolving any trust administration dispute is to identify the underlying issue. Common causes of conflicts include:
- Disagreements over the interpretation of trust terms
- Concerns about trustee’s actions or decisions
- Disputes between beneficiaries
- Accusations of breach of fiduciary duty
Take the time to listen to all parties involved and gather relevant information to gain a clear understanding of the situation.
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