A few weeks ago, the federal goverment, alongside state attorney generals, announced a $25 billion settlement with five large mortgage lenders — Bank of America, Chase, Wells Fargo, Citibank, and Ally Financial (GMAC). Among other things, the lenders were accused of “robosigning” — that is, signing documents that caused foreclosure without a thorough investigation of the facts, and failing to negotiate with homeowners in good faith, ultimately leading to default and foreclosure. The majority of the settlement funds — $17 billion specifically — is earmarked towards providing relief to approximately one million homeowners nationwide. Most of this relief will probably come in the form of principal reductions on the homeowners’ mortgages. Illinois is expected to receive between $1 and $1.5 billion. As an Illinois homeowner, if you meet one or more of the following criteria, you may benefit from this settlement agreement: 1) If you were foreclosed between 2008 and… read more →
Currently, homeowners can claim a homestead exemption, lowering their taxes on their primary residence. Many times, tenants renting a single-family home can also qualify for a homestead exemption if they are responsible for paying the real estate taxes on the home; in most counties, the tenant’s lease must state that a portion of the monthly rent is used toward taxes. Unfortunately, there are people claiming homestead exemptions on homes they don’t live in and other investment properties. As a result, proposed legislation is pending which would allow the county to eliminate the homestead exemption on a home that previously qualified for the exemption, if that home was not, in fact, owner-occupied. Counties could also insist that the owners of such properties refund exemptions that they previously received. Counties could even assess fines against such property-owners. Moreover, there is a move towards eliminating the loophole for single-family residences that are rented. Understandably, landlords are up… read more →
In the last few years, there have been an unprecedented number of foreclosures. So are we finding our way out of this mess? How did 2011 fare compared to recent years? RealtyTrac recently released some figures that can help us see where we stand. Well, overall 2011 was better than 2008, 2009, and 2010. In Cook County, there was a 30% drop in foreclosure filings from 2010. 56,648 homes in Cook County went into foreclosure in 2011, and that was 30% less than 2010. Wow. Nationally, the drop was larger — 34%. Despite this reduction, the average foreclosure case took over 550 days in court to resolve. Does this large 30% reduction mean that the end is in sight? Well, maybe it’s in sight, but it’s still very far away. While there was a large reduction in foreclosure filings last year, most of the reductions were attributed to the banks slowing down… read more →
A local organization, IFF, will be assisting Illinois residents with disabilities find a new home. The program has a $19,000,000 budget, and the funds will be used to find and purchase condominiums, mostly in Chicago and its suburbs. In order to be selected for the IFF program, the condominiums must be in an elevator building with easy access to neighborhood amenities and public transportation. The association must be financially healthy as well. IFF does not anticipate spending more than $150,000 on any one condominium; additionally, IFF will be paying assessments and property taxes. Once a condominium is purchased, IFF will modify the unit to make is accessible for people with disabilities. They will then rent the units to disabled tenants at discounted rates. Potential tenants must understand that they will not be living in a building where all the other residents are disabled. The goal of this program is to accommodate… read more →