Recently, JP Morgan Chase finally settled a lawsuit alleging that they had sold bonds backed by “toxic” residential mortgages between 2005 and 2008, and misled investors in the process. The settlement amount, $13 billion, includes a $2 billion fine paid to the Department of Justice (“DOJ”). Additionally, a portion of the funds will be used for homeowner relief. Specifically, $500 million are earmarked for loan modifications, and $1.5 billion are meant to be used for principle reductions. $2 billion are set aside to forgive the principal balances on homes that are vacant but are not foreclosed yet, to demolish deserted homes, and to assist low and medium-income borrowers who are trying to finance a purchase. $100 million is coming to Illinois, and other states will divvy up close to $1 billion. The bank has until 2017 to complete the delivery of relief to homeowners and borrowers. Much of the rest… read more →
Every quarter, the National Association of Home Builders, in conjunction with Wells Fargo, calculates the “home affordability index”. The index calculates the median income of families in a given area, and compares it with the median home price in that same area. For example, for the third quarter of 2013, the home affordability increase for the Chicago area calculated a $73,400 median income and a $210,000 median home price. Based on these figures, only approximately 64% of homes sold in the Chicago area were affordable to families earning the median income. Interestingly enough, in the second quarter of 2013, nearly 71% of Chicago area homes were affordable to the median-income buyer. The latest figures represent quite a drop just over the last three months. What’s causing this drop? Well, most probably it’s rising home prices and increased interest rates. Home prices are increasing faster than wages do. Although the winter… read more →
If you have made any energy-efficient home improvements since 2006 and have not claimed a tax credit of $500 or more for them already, you may be eligible for a tax credit of up to $500 for improvements made before the end of 2013. The types of items that qualify are listed below: 1) Up to $300 in materials and labor for some energy-efficient electric water heaters and heat pumps, central a/c units, and biomass stoves. 2) Up to $150 for certain energy-efficient propane, natural gas, or oil furnaces and boilers. 3) Up to 10% of the cost, excluding installation, of some energy-efficient insulation, doors and skylights, and certain metal and asphalt roofs. 4) Up to 10% of the cost up to $200 only, excluding installation, of certain energy-efficient windows. You will need your receipts and also manufacturer documentation, so keep the paperwork for when you file your taxes!
In a case decided just last week on appeal in Illinois, In re Application of the County Treasurer, 2013 IL App (1st) 130103 (November 8, 2013) Cook Co., 5th Division, the potential purchaser of a tax deed lost the property because of a two-day discrepancy in the notice he provided. In August of 2008, the appellant bought delinquent real estate taxes from 2006 for real estate located in Cook County. In December of that same year, the appellant filed a copy of it’s Section 22-5 notice, stating that the property owner had until February 12, 2011 to redeem the taxes. February 12, 2011 happened to be a Saturday. No one attempted to redeem the taxes, and in August of 2011, the appellant petitioned for a tax deed. Even though all parties were served, no one appeared in court. Regardless, in July of 2012, the appellant’s tax deed petition was denied because the final… read more →