Posted on June 23, 2019 in Real Estate

If you are looking to buy your first home, you are probably excited about taking a big step toward achieving the so-called “American Dream.” Whether or not you buy into such an idea, the reality is that your home will likely be the largest investment you have ever made. There is a good chance that the same is true if you are a current homeowner looking to buy your next home.

Many homebuyers—including some who have been through the process before—often do not realize how many steps are involved and just how complicated each step can be. Along the way, you will need to account for many different variables and be wary of potential pitfalls.

A Real Estate Agent Is Often Not Enough

As you started the process of looking for a home, you may have enlisted the help of a real estate agent or broker. You might have contacted a particular agent based on a specific listing, or maybe you chose the agent first to help you find a suitable property. It is important to keep in mind that your agent, while certainly helpful, is just one piece of a larger puzzle. You should also consider working closely with an experienced real estate attorney for several reasons:

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 Posted on June 13, 2019 in Foreclosure

Most people are familiar with at least the basic idea of foreclosure. They know that if a homeowner falls behind far enough on his or her mortgage payments, the proverbial “bank” will eventually take the home. Far fewer people, however, understand the reality that foreclosure is a fairly involved process and that, according to Illinois law, the process must be handled through the court system. As such, all foreclosures in the state of Illinois are considered judicial foreclosures.

Non-Judicial Foreclosures in Other States

Illinois is one of 16 states in which the law requires court participation in the foreclosure process. Five others generally use judicial foreclosures as a matter of custom or convenience. In the remaining 29 states, non-judicial foreclosure is the method of choice, either as an available option or because judicial foreclosure is prohibited by law.

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 Posted on June 07, 2019 in Foreclosure

Over the last several years, the nation’s economy has shown steady signs of improvement, but there is still a long way to go in many areas. When people go through tough financial times, some may find it necessary to sell what they own for far less than those assets are worth. In some cases, even applies to residential real estate in some cases. When a property is sold for a price that is less than the amount remaining on the mortgage, the transaction is known as a short sale.

Four Requirements for a Short Sale

A short sale is often a complex undertaking for several reasons. First, selling a house is almost always complicated. Next, since the sale price in a short sale is less than what the owner owes on his or her mortgage, the remaining amount of the loan must be taken into account. Finally, a short sale can only work if each party involved is on the same page regarding the transaction. The most difficult part of the process is often convincing the lender to allow the sale.

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 Posted on April 30, 2019 in Real Estate

Purchasing a new home is an exciting endeavor that represents the beginning of a new chapter in the lives of both the buyer and seller. However, in any major transaction, there are dangers present. Sometimes, the seller of a home is not entirely forthcoming regarding the defects present in the home. At other times, the buyer of a home might wrongfully claim that the house sold to them was defective. The risk of fraud or meritless claims is often a significant reason why some families avoid entering the home buying or selling process at all. Thankfully, Illinois state laws and court rulings provide clear guidelines on how to resolve these situations.

The Illinois Real Estate Disclosure Act

Under the Illinois Real Estate Disclosure Act (765 ILCS 77), the seller of residential property has to fill out the Residential Real Property Disclosure form and provide it to any potential buyer. On this form, the seller is required to list any material defects with the property. This is to encourage honesty during price negotiations and ensures that the house is sold at an appropriate price. If the seller knowingly fails to list any defect with the house, this is considered fraud. Section 55 of the statute specifies that if fraud occurs, the seller “shall be liable in the amount of actual damages and court costs, and the court may award reasonable attorney fees incurred by the prevailing party.”

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 Posted on April 22, 2019 in Loan Modification

After a software error that occurred in Wells Fargo's system sometime between April 2010 and October 2015, a settlement has finally been reached between the company and some 6,000 mortgage holders who were impacted by the error. The software error caused customers to be incorrectly denied modifications on their loans and repayment plans when they actually should have qualified. In several cases, foreclosure proceedings began after the denials.

The Beginning Issue

Wells Fargo originally stated that less than 1,000 customers were affected by the software error; however, a group of the affected borrowers filed suit against the company in June of 2017 for soliciting Chapter 13 debtors for what Wells Fargo called pre-approved “trial” modifications to their existing mortgage loans. The company also used the terms “no-application modifications.”

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 Posted on April 17, 2019 in Estate Planning

A will is often a difficult subject to discuss. In addition to the strong emotions involved when talking about death, discussions surrounding who will inherit what items or assets can cause division among family members. You want your family to be secure and happy, especially while you are still with them. However, you will not always be with them, so it is essential to set clear guidelines for how your assets will be distributed to your beneficiaries, who will be the guardian of your minor children, and how your last wishes should be carried out.

Requirements for an Illinois Will

Under Illinois law, any emancipated minor or adult who is at least 18 years old can make a last will and testament. A person must be of sound mind and memory to do so. For the will to be valid, three requirements must be met: 

1. The will must be in written form, and it may be handwritten, typed, or printed out. Illinois state law does not allow for oral wills.

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 Posted on March 03, 2019 in Loan Modification

Wells Fargo used to be a shining example of how a big bank should be run, but now they can not seem to stay out of the news for all the things they have done wrong. They recently revealed an error in their mortgage underwriting software that resulted in hundreds of denied mortgage modifications for borrowers who were facing foreclosure. The error affected some mortgages that were foreclosed on between April 2010 and October 2015. The error created a miscalculation of attorney fees that were used to determine if a borrower qualified for loan modification.

The error resulted in some 625 customers being denied modification and out of those customers, some 400 of them were foreclosed on after being denied. Wells Fargo has set aside $8 million to use as remediation for the customers who were affected by the error. While this may seem like a lot, it only equals out to $12,800 per customer, hardly adequate compensation for losing a home.

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 Posted on July 14, 2017 in Loan Modification

When a homeowner is facing foreclosure, getting a loan modification can be an attractive alternative to filing for bankruptcy or facing the foreclosure process. If you are considering modifying your mortgage loan, understand that it is not a simple process. You will need to demonstrate that you are qualified to have your loan altered this way and if you do receive a modification, you will need to comply with its terms. Before agreeing to any modification to your current mortgage, speak with an experienced loan modification lawyer about your options, your rights, and potential risks associated with this action.

Are You Underwater or at Risk of Default?

Typically, you need to show that you are either underwater on your mortgage, which means you have a mortgage balance higher than the home's actual market value, or that you are at risk of defaulting on the mortgage in order to qualify for a loan modification. You can do either of these by submitting the related paperwork to your loan servicer, which can be a copy of your mortgage statement, pay stubs, and documentation showing your current financial hardship.

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 Posted on September 23, 2015 in Mortgage

Homeowners get themselves into financial trouble for a variety of reasons. Maybe you have recently lost your job or suffered a significant injury, straining your financial resources to the point that you have begun to miss mortgage payments. Depending on the gravity of your financial situation, foreclosure might seem like it is your only option.

It is not. In many cases, struggling homeowners can keep their houses by working with an experienced foreclosure defense attorney to determine how they can remain in their homes. It can be difficult and require you to make personal sacrifices, but the payoff is the ability to remain in the home where you have lived and loved.

Negotiate with Your Lender

In some cases, it is possible to negotiate a lower mortgage payment or longer repayment term with your lender. Whether you are successful in negotiating this type of alteration to your loan or opening a new loan can depend largely on your previous payment history and the amount you currently owe on your home. An experienced foreclosure defense attorney can help you with this process.

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 Posted on September 07, 2015 in Foreclosure

At first, the term “strategic default” might sound like an oxymoron. You know that defaulting on your loan is a bad thing. Or at least, you have been taught to believe it is a bad thing. But sometimes, it actually makes financial sense to default on your loan.

The first question to ask yourself when you are considering a strategic default is whether the value of your property is higher or lower than the amount of money you owe on your loan. If the property is worth less than you owe, you have what is known as “negative equity.” Having negative equity does not necessarily mean that a strategic default is your best option, but it can.

Why Should I Choose a Strategic Default?

Strategic defaults are also sometimes known as voluntary foreclosures. This is because despite having enough money to pay off your loan, you choose to allow your property to go into foreclosure.

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