Most people were happy to hear that Congress passed the payroll tax cut extension, extending the tax break for two more months. But Congress still has a budget to meet, and if taxes are reduced in one place, costs have to increase somewhere else. So where did they get the money to fund the payroll tax cut? The answer is simple — mortgages. Effective April 1, 2012, Fannie Mae and Freddie Mac will raise the guarantee fees charged to lenders. The new fees will be in effect until October 21, 2021. How much will the fees increase? It’s difficult to say how much the fees will go up on any given loan, but overall the increase should average out to about .1% (that is, one-tenth of a percentage point). That may not seem like a whole lot on a monthly basis, but your lender will pass this extra cost on to… read more →
When buying a condominium, or a home that is part of any association with regular monthly assessments, buyers have a lot to worry about these days. It’s not uncommon for a buyer to find a condo or home in an association for an amazing deal. But as a buyer, you can’t just look at the unit you’re buying. Sure, it’s an amazing deal. Sure it’s in great shape, and just needs a little bit of touch up. Sure, the monthly assessment is low and there is no special assessment pending; or, there is a special assessment, but the seller will pay it off. And hey, it’s so cheap you can buy it in cash, you don’t even want to get a loan. But beware, are you buying someone else’s headache? During the course of your transaction, your attorney should obtain a Section 22.1 Disclosure for you. She should also get you the assocation’s… read more →
Do you qualify for relocation assistance from your landlord? You may, if you meet the following criteria established by Section 13-72-060(F) of a new ordinance governing Chicago developers: 1) Your landlord is converting the property to condominium and recording the condominium declaration on or after July 30, 2012.2) You have a lease or other rental agreement to occupy your unit.3) The unit is your primary residence.4) Your household income is not greater than 120% of median income for the “Chicago-Naperville-Joliet, Illinois Metropolitan Fair Market Rental Area”, and you can provide written evidence of your household income. 5) You are not buying your unit, or any unit, in the condominium conversion.6) Your landlord has not obtained an order of possession for your unit against you. If you meet these criteria, you may qualify for a flat relocation fee of $1,500. If your rent exceeds $1,500, your relocation fee will be higher… read more →
Effective January 1, 2012, a new Chicago ordinance that was passed last May finally went into effect. The goal of the ordinance is to protect buyer of new condominium conversions, as well as tenants of buildings that are in the condominium conversion process. Developers must obtain a license for residential real estate development from the city. If a developer is recording the condominium declaration after January 1, 2012, the developer must provide a Condominium Disclosure Summary in a format approved by the city. This summary shall include various details about the condominium development, such as 1) a description of the property’s amenities; 2) financial information regarding assessments, budget, reserves, and operating expenses; 3) a description of applicable warranties; 4) parking information; 5) information about the building’s or unit’s infrastructure, such as appliances, HVAC, hot water heaters, elevators, masonry, and security systems; 6) restrictions such as limits on rentals, sales, or use… read more →