An interesting case, Perron v. J.P. Morgan Chase Bank, N.A., No. 15-2206 (January 11, 2017) S.D. Ind., Indianapolis Div., recently decided by the Seventh Circuit Appeals Court, started out when the homeowners neglected to tell their mortgage servicer that they had switched their home insurance carrier. Since their mortgage servicer paid the insurance out of their escrow, their new insurer didn’t get paid. As a result, in 2011, the plaintiffs sent two letters to the bank accusing them of paying the wrong insurance company out of their escrow account. Since Chase had not received any notice of the switch in insurance carriers, Chase, not surprisingly, paid the old insurance company. Chase told the plaintiffs that the old insurance company would send them a refund, and that they should send that refund on back to Chase so that Chase could replenish the homeowners’ escrow account. The old insurance company did send… read more →
The Super Bowl is over, Valentine’s Day is over, and despite the fax that the groundhog saw his shadow, it seems that our Chicago winter has been relatively mild as far as winters go. Spring is definitely in the air. And spring means. . . . .tax season. As you get ready to do your taxes this year, keep in mind you may qualify for some tax breaks you didn’t expect. If you have made certain home improvements, they may pay off in more ways than one. For example, installation of the any of the following energy efficiency items or appliances make your home more green and save you some green at the same time: Central air conditioning can get you a $300 credit. Insulation can save you up to $500, or 10% of what it costs – whichever is less. A solar water heater can save you 30% of… read more →
An interesting case, Cantrall v. Bergner, 2016 IL App (4th) 150984 (December 19, 2016) Sangamon Co., started out as a breach of the Illinois Residential Real Property Disclosure Act, and turned into a fee-shifting dispute. Here’s what happened: The plaintiff entered into a contract to purchase the defendants’ home in March of 2011. The defendants provided the Illinois Residential Real Property Disclosure, which stated that they were not aware of leaking or material defects in the chimney, ceilings or roof. During the home inspection, the inspector found damage and rotting wood. The parties entered into an addendum which stated that the defendant could complete the repairs himself, if he was competent to, or he could hire a contractor. The defendant chose to make the repairs himself, even though he had no knowledge of roofing. Although her inspector suggested that she have a roofer make sure the work was done correctly,… read more →
Some new bills have been proposed in the state legislature this year. It remains to be seen whether they will pass, but if they do, they will tweak existing laws and regulations affecting real estate in various ways. Here’s a quick summary of some of the proposed legislation: Of course, foreclosures are on everyone’s mind, at least for the last 8-10 years. One of the proposed laws takes some of the burden off of the bank. Specifically, the proposed legislation would create a prima facie case of foreclosure if the bank can admit the following two items into evidence: the mortgage and the note. That’s really all the bank would need. After that, the burden would shift to the mortgagor to contradict the prima facie case of foreclosure. The mortgagor would have to prove the amount still outstanding on the note and also make any affirmative defenses. The bank will… read more →