Posted on December 09,2019 in Foreclosure

Data shows that approximately one in every 2,453 homes in the United States will be foreclosed on at some point. The problem is even more serious in Illinois, where one in every 1,336 homes will be foreclosed on according to the current foreclosure rate. Having your home foreclosed on can be an absolutely devastating ordeal to endure. Unfortunately, many homeowners do not understand what their rights are when it comes to home foreclosure. They may assume that they “deserve” to lose their home because they have missed mortgage payments. However, mistakes are prevalent in the mortgage servicing industry, and some individuals facing a foreclosure may be the victim of such an error. If you have been threatened with foreclosure, you should know that there are several foreclosure defenses that could  help you keep your home.

Your Mortgage Servicer Made a Serious Error

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 Posted on December 02,2019 in Foreclosure

While the housing market has largely recovered from its most recent serious crash, many families still worry about money and how they will afford their mortgage payment every month. In some situations, money is always pretty tight, and in others, a serious accident or illness may upset the family’s financial stability. If you are struggling to pay your mortgage, you might have had someone suggest a “strategic default” as an option for you. Before you take any action, however, it is important to know what a strategic default is and what the consequences could be.

What Is a Strategic Default?

A strategic default refers to a situation in which a borrower intentionally allows his or her loan to default. The borrower deliberately falls behind on the loan as a financial strategy, not because he or she could not afford the payments. Strategic defaults are most often used when there is negative equity in the property in question. Negative equity means that the property is valued at less than the amount remaining on the mortgage loan.

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 Posted on November 27,2019 in Loan Modification

When you default on a loan for a commercial real estate project, it is easy to fear the worst. However, there are often many options for investors looking for assistance with getting a forbearance or a workout agreement with the lender. In order to protect your investment, however, you will need to act quickly.

Alternatives to Bankruptcy

In many parts of the country, the commercial real estate sector has continued to experience its share of challenges, leaving many businesses and investors in a cash crunch and unable to pay their loans. Some people mistakenly believe that the only way out of a default or distressed loan is bankruptcy. However, there are often other options available. 

With the help of a knowledgeable lawyer, you might be able to negotiate an agreement with the lender that avoids a foreclosure and bankruptcy. Lenders often do not want to deal with a foreclosure any more than you do. In fact, if you will eventually be able to get your loan caught up, it will usually make the most financial sense for your lender to work out some type of arrangement with you. With careful representation, you may be able to secure a forbearance agreement with the lender that gives you more time to get current on the loan.

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 Posted on November 21,2019 in Real Estate

There is no question that spring and summer are the most popular months for buying a home. Therefore, they are also the most popular months for selling a home, since you cannot buy a home unless someone is selling.

While winter does not officially begin for another month or so, the cold season has already made its presence known in Northern Illinois, and we all know that it is here to stay for a while. With this in mind, you might have decided to wait until the spring thaw to put your home on the market. Some experts believe, however, that selling your home during the winter could be very rewarding for several reasons.

Reason #1: Less Competition

Because everyone “knows” that springtime is the season for selling a home, many people choose to wait. If you wait too, there probably will be hundreds of other homes available, including many near your neighborhood. With winter comes fewer available homes, which means your home will be in a better position to stand out. Fewer options will push potential homebuyers in your direction, even if not as many people are looking for new homes. The question is one of supply and demand, and the winter season is often a seller’s market

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 Posted on November 13,2019 in Real Estate

Buying a new home is an exciting opportunity, but the process can be time-consuming and stressful at times. By the time you have found the right home, secured the necessary financing, and reached an agreement regarding the terms of the deal, you will certainly be ready to move in and relax for a while. Before you can do, however, there is one final step: the closing. If you have never bought a new home before, you should be aware of what goes on at closing and what you will be expected to do.

Your Role at Closing

Before you can get the keys to your new home, you will generally be required to attend and participate in a mortgage closing. Most often, a closing is a scheduled appointment at the office of an attorney, the title company, or your mortgage lender. You should bring any documents that you received or signed in the weeks leading up to closing, along with two forms of identification. You will also need an acceptable form of payment—usually a cashier’s check—if your required payment has not already been wired in advance.

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 Posted on November 07,2019 in Loan Modification

Are you behind on your mortgage? If so, are you getting to the point where you are worried about the possibility of foreclosure? When you are behind on your mortgage payments, things can spiral out of your control very quickly. It is important to realize, however, that you may have options that could allow you to keep your home and to get back in good standing with your lender. One of these options is a loan modification, and a skilled Lake County lawyer can help you apply.

Your Loan Will Not Be Modified If You Do Not Apply

A loan modification, put simply, is an amendment to the terms of your loan so that you can get caught up and back on track with your mortgage. There are different types of modifications available, such as an extension of the loan’s term to reduce monthly payments, interest rate adjustment, and the capitalization of your missed payments. While each type of loan modification is different, they have one thing in common: you cannot get a modification unless you apply for one.

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 Posted on October 31,2019 in Real Estate

Few things are more frustrating than finding that your home was built with some type of defect. These defects may not be discovered for many years down—long after explicit warranties have expired. In most cases, even your homeowners insurance will not help you recoup the costs to fix the construction defect.

Your Insurance Might Not Cover You for Construction Defects

The typical homeowners insurance policy is intended to protect homeowners from specifics types of losses. Such a policy will generally cover the structure of the home, as well as other buildings on the owner’s property, such as a detached garage or tool shed. The policy will also usually cover replacement costs for personal property that is stolen or destroyed by a covered risk, such as a fire. Most homeowners policies also include a level of liability protection in the event that another person is injured while visiting the property.

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 Posted on October 14,2019 in Real Estate

If you are the owner of property that you lease to commercial tenants, you will almost certainly have to deal with lessees who fail to pay their rent on time. While you might offer grace periods or other ways to help your tenants, eventually, one or more of your tenants will probably reach a point where you start to wonder if they have stopped paying altogether. As a commercial landlord, there are a few things to consider and certain steps that you must take before you can begin the process of evicting a commercial tenant.

Reach Out and Talk

As with any human interaction, commercial leasing issues can often be resolved through open and honest communication. Maintaining open communication can catch small issues before they grow into major problems. If your tenant’s payment for the month is late, consider reaching out to find out what is happening. You could make a quick phone call, stop by the business, or even send a friendly text message asking if everything is ok, especially if your tenant has never had trouble paying on time before.

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 Posted on October 07,2019 in Foreclosure

If you are a homeowner, there is a good chance that you bought your home with a mortgage loan and that you make payments on your mortgage every month. If you are a renter, you make rental payments each month, but instead of making payments to a bank or lending institution, your rent goes directly to your landlord. Presumably, your landlord is using your payments to make payments of his or her own on the mortgage for the property in which you live.

You are most likely aware that failing to make your mortgage payments on a home that you own could result in foreclosure, with the bank seizing your home. Similarly, you know that failing to make your rental payments could result in eviction, with the landlord taking possession of his or her property. So, what happens when you make your rental payments each month but your landlord does not make his or her mortgage payments?

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 Posted on September 30,2019 in Real Estate

When a person is looking to sell his or her home, he or she will usually enlist the help of a real estate broker to manage the deal. In some cases, however, a homeowner will forgo a broker and try to sell the home in a “for sale by owner” transaction, or a FSBO—pronounced “fizz-bo”—deal. If you are considering buying a FSBO property, you may be able to get great value for your money, but there are some risks that you should take into account.

Sharing the Workload

Real estate brokers are trained—and hired—to do much of the legwork involved in residential real estate transaction. In a FSBO situation, however, the owner will almost certainly not have the same level of experience or knowledge of the real estate world. This means that he or she might not provide you with all of the relevant information regarding the deal. While the oversight might be unintentional, you should be aware of it and be ready to take on some additional responsibilities in exchange for the lower price that is typically part of a FBSO purchase.

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