The Federal Trade Commission recently issued the Mortgage Assistance Relief Services Rule to protect homeowners from mortgage relief scams. When the real estate market started to flounder, a number of fly-by-night operations claiming expertise in loan modifications and short sales sprung up. As a result, homeowners — many of whom were already struggling to stay on top of their mounting bills — paid sums to such companies in an attempt to obtain mortgage relief or short sale assistance, to no avail. In an attempt to protect homeowners, effective January 31, 2011, the FTC banned mortgage relief companies from collecting any fees from homeowners until a loan modificaton or short sale is in fact completed. For mortgage relief to be “complete”, the lender must present a written offer which the homeowner accepts. Mortgage relief companies must remind homeowners that they have an option to reject any offer which they receive, without incurring… read more →
Condominium associations often sue developers for construction defects. But can they sue the builder, even though the builder did not sell any of the units directly to the condominium owners? According to 1324 W. Pratt Condominium Association v. Platt Construction Group, (2010 Ill. App. LEXIS 1030), the answer is yes. In this recent court decision, the builder built an 8-unit residential building for a developer, who then sold the units to individual owners. The individual owners eventually found out that the building (and their personal property) was damaged due to water leaking in from the roof. The condominium association then sued the developer, the builder, and the roofer. The builder claimed he should not be held liable, since he sold the building to the developer, not to the individual unit owners. The court, however, disagreed, and held that the builder could be liable under the implied warranty of habitability, regardless of whether or… read more →
The famous homebuyer tax credits, as extended, are long gone now. Or are they? Actually, they are still available to you, but only if you are a member of the armed services, foreign service, or U.S. intelligence. In that case, you have until April 30, 2011 to enter into a contract for the purchase of your primary residence, and until June 30, 2011 to close it! In order to qualify, you must have been on official duty outside of the United States for at least 90 days, anytime between December 31, 2008, and May 1, 2010. If you were married and on official duty outside of the United States for such a 90 day period, then your spouse also qualifies for the extended eligibility timeframe for the home buyer tax credit. Both spouses need not be overseas — so long as one spouse qualifies, the spouse who remains in the United… read more →
As you may have heard, there were some fairly strong tax incentives available for homebuyers from 2008 until September of 2010. The most recent first-time homebuyer tax credit for up to $8,000, as well as a repeat homebuyer tax credit of up to $6,500, lured some buyers out of the woodwork. You may have been one of them. But did you know that you may have to pay the credit back? There are a variety of situations in which you could be required to repay all or a portion of the credit you received. If you fall into any one of the categories below, the IRS can require repayment: 1. Receipt of the First Time Home Buyer Credit for a 2008 purchase, and the subsequent sale of your home to a related party within 15 years; 2. Receipt of the First Time Home Buyer Credit for a 2009 or 2010 purchase, and the subsequent sale of your… read more →
Like all things, condominium buildings get old. Eventually, things need to be replaced. The roof might start leaking, the fences may start to deteriorate, or the walkways may begin to crumble. Maybe these things haven’t happened yet, but they could happen soon. Of course, when the time does come, all of these repairs will cost money. In these cash-strapped times, who has enough of that? How can a condominium association plan for these repairs now to prevent financial insolvency later? As an association begins to age, it should consider completing a reserve study. A reserve study is usually conducted by a team of building and construction professionals. The company you hire to do this will probably utilize both engineers and architects in its evaluation. The professionals will come out to your building and do a thorough review of all of your systems. After the review is complete, they will give your association the… read more →