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Recent Blog Posts
What Should Be Included in a Real Estate Purchase Contract?
A residential real estate transaction usually begins when a prospective buyer places an offer on a home and the seller accepts their offer. Once a purchase price is agreed upon, the parties will sign a purchase contract, and they will then work to complete all requirements that must be met before the closing date on which the transaction will be completed. Those who are buying or selling a home will want to understand the terms that will be included in their purchase contract, and by working with an experienced real estate attorney, they can make sure their rights will be protected throughout their transaction.
Terms of a Real Estate Purchase Agreement
A purchase agreement is a legally binding contract between the buyer and seller. It will include identifying information about the parties, a description of the property being purchased, and the planned closing date, as well as any details about when the buyer will take possession of the property. The parties may also negotiate other terms that should be included in the contract, such as:
Are COVID-19-Related Financial Issues a Defense Against Foreclosure?
After nearly a year, the COVID-19 pandemic is continuing to affect people across the United States. Even though vaccines are currently being administered, they are being rolled out slowly, and it will most likely be several more months before enough people can be vaccinated to allow a return to the activities that people enjoyed before the pandemic. Unfortunately, this means that those who have been struggling financially may continue to face difficulty and uncertainty for the time being. However, federal and state government organizations have offered a variety of different forms of relief, and programs may be available to help homeowners who have been affected by COVID-19 avoid foreclosure.
Foreclosure Moratorium Extended
The Coronavirus Aid, Relief, and Economic Security (CARES) Act, which went into effect in March of 2020, placed a moratorium on foreclosures and evictions for single-family homes with mortgages backed by the Federal Housing Administration (FHA). While this moratorium was initially intended to last through July 24, 2020, it has been extended several times as the pandemic has continued to affect people and families. Most recently, the FHA announced that the moratorium will extend through February 28, 2021. The moratorium applies to new foreclosure proceedings and any foreclosures which are already in process.
How Do Easements Affect a Real Estate Transaction?
There are a wide variety of issues that can play a role in a real estate transaction. One factor that both buyers and sellers should be aware of is whether there are any easements that apply to a property. Since easements are considered encumbrances that affect an owner’s ability to use their property, they should be addressed during the home closing process, and the parties should be sure to understand their rights and whether any changes to these agreements will be necessary.
Types of Easements on Illinois Real Estate Property
An easement is an agreement that provides someone other than a property’s owner with the right to use a portion of the property. Easements may be affirmative, meaning that they grant a party the right to use a specific part of a property for specific purposes, or they may be negative, meaning that they prohibit a property from being used in certain ways. Affirmative easements may include agreements that allow neighbors to use shared driveways or the rights of utility companies to place or maintain items such as power lines, gas lines, or water mains. Negative easements may restrict a property owner from erecting structures on a part of a property that is environmentally protected or from making additions to a home that would block a neighbor’s view.
Can a Default on a Second Mortgage Result in Foreclosure?
Over the past decade, the threat of foreclosure has been ever-present for many homeowners. Those who are struggling financially may be concerned that missed or late mortgage payments will result in the loss of their home. However, many homeowners who have refinanced their homes or obtained additional mortgages may be unsure about how these loans will affect their financial situation, including whether mortgage lenders may foreclose if a person is in default on a second mortgage. By working with an attorney to understand these issues, homeowners can determine their best options for defending against foreclosure and managing their debts.
Defaulting on a Second Mortgage
A mortgage is a secured debt, and this means that if a homeowner defaults on the debt, the lender can foreclose and repossess the house. This is true not only for the initial mortgage on a home, but also for any subsequent mortgages or home equity loans. However, during foreclosure, the first mortgage will take priority, and lenders of second or subsequent mortgages will only receive payments if the amount obtained through a foreclosure sale exceeds the amount owed on the first mortgage.
How Can Liens Against a Property Affect a Home Closing?
Residential real estate transactions can be very complex, and whether you are buying or selling a home, you will need to address a variety of legal issues and meet a number of requirements. As you prepare for your home closing, you may encounter obstacles that affect your ability to complete the transaction. One issue that may arise is the discovery of liens against a property, and these will need to be cleared before your closing date.
Understanding and Clearing Liens
A lien is an unpaid debt that is attached to a property. There are a variety of situations in which liens may exist, including:
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Mechanic’s liens - If a contractor or subcontractor was not fully paid for construction work done on a property, they may file this type of lien to recover the money they are owed.
Should Landlords Consider Lease Modifications Because of COVID-19?
The coronavirus pandemic has had a massive impact on the economy of the United States, affecting both individuals and businesses. In many cases, job losses or requirements to close businesses or scale back operations have made it difficult or impossible for tenants to pay rent. This has put many landlords in a difficult position, especially since multiple states, including Illinois, have placed a moratorium on evictions. As landlords determine how they can recoup their investments in the property they own, they may be able to negotiate lease modifications with tenants. This can provide them with some protections and allow them to move forward with their business goals as the country continues to address the effects of COVID-19.
Rent Deferrals and Modifications to Lease Agreements
What Role Do Inspections and Appraisals Play in Selling a Home?
There are many reasons why you may wish to move to a new home. You may be pursuing job opportunities in a new area, you may need more space for your growing family, or you may simply be looking to make a fresh start in a new community. While moving can be exciting, the process of selling your home can sometimes be lengthy and complicated, and you will want to understand the factors that can affect your ability to complete this transaction. Home inspections and appraisals can often have a significant impact on the purchase price of your home and the closing costs you will be required to pay, so you will want to be sure to understand the best way to approach these events.
Appraisals Vs. Inspections
An appraisal will determine the market value of your home, while an inspection will address its condition and identify any issues that may need to be repaired or addressed. An appraisal will typically be scheduled by the buyer’s mortgage lender, and if the appraised value of the home is lower than the offer made by the buyer, the buyer may attempt to renegotiate the price, or they may back out of the sale if contingencies in the purchase contract allow them to do so. Steps sellers can take to ensure that their home is appraised properly include making improvements and fixes to minor issues and ensuring that the property is clean and well-maintained.
Is a Short Sale a Good Alternative to Home Foreclosure?
Many people and families throughout the United States are struggling with debt, especially during the COVID-19 pandemic, which has resulted in the loss of jobs, reductions in the income that people are able to earn, and other financial difficulties. Homeowners who are struggling to pay ongoing expenses may be concerned about what will happen if they default on their mortgage, including whether they may face foreclosure. While some homeowners may be able to avoid foreclosure through a loan modification, others may find that they will be unable to avoid losing their home. In these cases, a short sale can sometimes be beneficial.
What Is a Short Sale?
A homeowner may owe more on their mortgage than their home is actually worth. If the homeowner is experiencing financial hardship, they may be able to sell their home at a fair price and avoid owing additional money to their mortgage lender. In many cases, a lender will need to approve a short sale, although it may be possible to complete a transaction without lender approval.
What Should I Expect During My Home Closing?
Homeownership is an important goal for many American families. Buying a home is an exciting prospect, but the process of doing so can be very complicated. Once you get pre-approval for a mortgage, sign a purchase contract, and put down earnest money, this process begins, and you will spend the next several weeks working to complete the necessary steps to close on the home. As you prepare to move in, you will want to understand exactly what will happen at your home closing. With the right real estate attorney on your side, you can make sure the closing process proceeds smoothly, and you can make sure you are ready once your closing date arrives.
Steps Followed at Your Closing Date
Multiple people may be present at your closing, but the parties will usually include you (the buyer), your attorney, your real estate agent, and a closing agent who works for your mortgage lender or the title company. The seller or their real estate agent may also attend the closing. You will want to bring a cashier’s check in the amount of your closing costs, along with proof that you have obtained homeowner’s insurance and completed a home inspection, as well as any other documentation required by your lender.
What Is the Difference Between Foreclosure and Repossession?
The economic impact of the COVID-19 pandemic has been significant. Many people throughout the United States have either taken a pay cut, been temporarily furloughed, or lost their jobs completely. As a result, renters and homeowners are struggling to make their monthly housing payments. While repossession and foreclosure are both processes used by creditors to reclaim property that is used as collateral for a loan, the procedures followed in each type of case are different.
Defaulting on a Loan
Repossession is common in vehicle loans. Once a person becomes delinquent on payments and the borrower is in default on the loan, the lender can take back possession of the property at any time. The foreclosure process, on the other hand, is more complicated than repossession. If someone is 120 days delinquent on his or her mortgage, the lender can begin official foreclosure proceedings by filing a complaint in court. The homeowner has 30 days to respond to the complaint.
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