In 2024, Illinois had one of the highest foreclosure rates in the United States. As a whole, the United States is seeing a rise in foreclosures, though it is nowhere near as bad as the recession of 2008. If you are in the market to buy a home, you might have seen listings for properties that are foreclosed and possibly being sold below market value. However, foreclosures are very different from normal real estate transactions, so it is important to know your risks before moving forward. Essentially, foreclosure is when someone defaults on their mortgage and the bank ends up repossessing the property. Therefore, when buying a property in foreclosure, the seller is the bank, not an individual. Unlike an individual, who can make certain representations about the property and has knowledge of its ins, outs, and problems, the bank really knows nothing about the physical condition of the property. … read more →
This Article is the second in a series about new real estate related laws in Illinois, effective in 2025. There are good landlords, and there are bad landlords. The worst of the bad landlords can make life miserable for tenants. Pushed against a wall, tenants might complain to the authorities or try to exercise their rights in some other way. The Illinois Legislature has passed Public Act 103-0831, effective January 1, 2025, to prohibit landlord retaliation. If a landlord violates the new law and sues the tenant, the tenant will have a viable defense and can go after the landlord for damages. The tenant could terminate the lease and demand a return of the security deposit with interest, plus any prepaid rent. If the landlord has tossed the tenant out of the unit or threatened to throw him out, the tenant can recover possession of the unit. The tenant may… read more →
You have a house, you pay the mortgage, keep up on repairs, make improvements, and if all goes well, someday you will pay it off. But what happens to your home if something happens to you? What happens to your family (who may live in the home)? Growing old is part of life. There may come a time when you are no longer living in your house. In that case, your house needs to be transferred to your spouse, your children, other family members or other loved ones. How can you prepare for this transition? An experienced estate planning attorney can help you figure out what the best option for your property will be. You may need a will, a TODI, a land trust, or a revocable living trust. You may need something else. No matter which option you choose, you should discuss your plans with your family. A will… read more →
This Article is the first in a series about new real estate related laws in Illinois, effective in 2025. I have a fair number of clients who buy distressed properties at foreclosure auctions. Occasionally my client buys a home to live in at a judicial sale, but more often than not, it’s investment property. If you are in the business of purchasing foreclosed property from judicial sales and/or auctions, or if this is something you are looking to get into, then you should be aware of Public Act 103-930 S.B., 2919, which was recently signed into law and is effective as of January 1, 2025. Through the end of last year, foreclosure auctions were entirely in person. If you found a foreclosed property you were interested in, you had to physically attend the auction. In this day and age of Zoom, Teams, and Google Meets, this might seem unusual, but… read more →
If you’ve been looking for a home for a while, chances are a listing marketed as a short sale has come across your radar. The price of the home probably caught your eye since it seemed to be way below market value. However, when signing a contract to purchase a short sale, there are many things you need to know. A short sale is not like a regular purchase. First, what is a short sale? A short sale may very well be the last straw before a home goes into foreclosure. Indeed, often a short sale is processed while the home is already in foreclosure. Essentially the owner of the property is behind on their mortgage payments. Instead of the bank foreclosing and taking possession of the house, the bank cuts a deal with the current owner to sell the property and use the proceeds to pay off as much… read more →
If student debt is holding you back from buying a home, the Illinois Housing Development Authority (IHDA) may have a solution. Provided you meet certain criteria, IHDA’s SmartBuy program will not only give you $5,000 towards your down payment or closing costs, but it will also PAY OFF YOUR STUDENT DEBT, UP TO $40,000. It does not matter where you live now. As long as you are buying a home in Illinois and plan to move in within 60 days after you purchase your home, and you meet the other eligibility criteria listed below, you may qualify for SmartBuy. SmartBuy eligibility is based on the following: The property you purchase must be your primary residence. If you currently own a home and intend to purchase your next home with SmartBuy, your lender will decide if you are able to own both homes or if you need to sell the first… read more →
For some reason, a lot of people want to add their adult children onto the deeds of their homes. I must talk to a client about this at least once a week. People generally have different, specific reasons they want to do this. But if you take away all the fluff, it generally boils down to one thing—they want their kids to end up with the house when they die. But is adding your children onto the title of your home the best way to do this? Well, I can’t say it’s never a good idea. There are a few situations where it may be the best way to go. But more often than not, there is a better solution. So why is it not a good idea to add your adult children onto the deed to your home? Your child may want to get a mortgage to purchase real… read more →
A few years back, during the pandemic, I had a particularly memorable closing. Unfortunately, it was not memorable for any good reason. Every single thing was going wrong. My paralegal had an emergency and was not in the office. My clients, the buyers, had gone to do their walk-through that morning. They found rats in the house. Additionally, built-in shelving that was included in the purchase had been removed from two different rooms in the house, including an entire wall of mudroom built-ins. The seller was nowhere to be found. The seller‘s attorney was nowhere to be found. When I finally tracked down his assistant and told her about the rats, she said a few rats should not bother anyone and they certainly wouldn’t bother her. Gross. Honestly, I have had so many closings where sellers have pulled these types of stunts that despite all the problems, in a normal… read more →
While you are negotiating your contract for purchase of real estate, or during your attorney and inspection review periods, you (the Buyer) may reach a point where you need to make a decision about a closing cost credit or a purchase price reduction. For some reason or other, you and the seller have agreed on a financial concession in your favor. At this point, you need to decide how you should receive that concession. If you are purchasing in cash, the simplest thing to do is to reduce the purchase price. Since you are a cash purchaser, you will be paying your purchase price and all of your closing cost at closing anyway. There is no lender involved to make things messy, so you might as well take a straight reduction on the purchase price. At some point when the county goes back and looks at the sale of the… read more →
If you are thinking about setting up a land trust, you should educate yourself. Does a land trust even make sense for you? What are the benefits of putting your real estate in a land trust? What’s the downside? And of course, what types of land trust options do you have in the state of Illinois? In its essence, a land trust is simply a trust created to hold real estate. In most cases, one land trust holds one parcel of real estate. The elements of a land trust are fairly straightforward: (a) You need to create a trust agreement; (b) to the extent you are using a title company or a bank to manage the land trust, you need to make sure that the trust is open and paid for; and (c) you need to actually fund the trust by transferring in the real estate in question. One of… read more →