Most home inspection contracts state that the inspector’s liability is limited to the cost of the inspection. But if you have an issue with your inspector, will this hold up in court? In Zerjal v. Daech & Brauer Construction, Inc., 210 Ill.App.LEXIS 1269 (5th Dist.2010) , the Court says yes, it will. In 2006, the plaintiff hired the defendant to inspect a home he had under contract. A few weeks later, he closed on the home. After closing, the plaintiff found many structural defects that he was not informed about during the inspection or in the inspection report. According to the plaintiff, the foundation could not support the house, the walls could not support the loads they were carrying, there was water leakage into the home, the electrical system was not safe, the HVAC was damaging the home’s wood, and the home was generally structurally unstable. The trial court found… read more →
Last year, in Mapcor Corporation v. J.P. Morgan Chase Bank, N.A., 938 N.E.2d 1181 (2d Dist. 2010), J.P. Morgan Chase Bank lost on appeal after it claimed that it should not have to pay the amount the jury awarded to the plaintiff at trial because the plaintiff had purchased the property from J.P. Morgan Chase AS-IS. The court, however, disagreed, based on the following background: The bank was aware that the roof of the property needed to be torn off and completely replaced. However, because the cost to do this was high, the bank hired a contractor to put a new roof over the original roof — against the broker’s and the contractor’s advice. The bank fired the original broker and hired a new broker, and then falsely represented that the roof was torn off and replaced with a new roof. Relying in part on this representation, plaintiff purchased the property in 1996. Over the… read more →
Most people know what a condominium is. You may even know what a co-op is. But do you know what a common interest community association is? Last year, the Illinois legislature passed the Common Interest Community Association Act. The act defines a “common interest community” as follows: Real estate other than a condominium or cooperative with respect to which any person by virtue of his or her ownership of a partial interest or a unit therein is obligated to pay for the maintenance, improvement, insurance premiums or real estate taxes of common areas described in a declaration which is administered by an association. “Common interest community” may include, but not be limited to, an attached or detached townhome, villa, or single-family home, or master association. What does this mean in plain English? It means that if you live in a subdivision or neighborood where there is some common area managed or administered by… read more →
It has been a little more than a year since Cook County announced its new Foreclosure Mediation Program in April of 2010. The purpose of the program was to help homeowners with free legal advice, and also to assist then in reaching a resolution with their lenders. As of April of 2011, more than 27,000 homeowners had asked for advice. Of those 27,000 homeowners, 1,820 were referred to mediation. Of those 1,820 referrals, 627 homeowners had completed their mediations. Of those 627 completed mediation, 216 homeowners received loan modification and will continue to stay in their homes. The remaining 411 homeowners have either left their homes already or are still in the foreclosure process. The Foreclosure Mediation Program started with a budget of $3.5 million, and has received another $3 million to keep it running until November 2011. While mediation can be slow, the program has helped many homeowners. With any luck, the program… read more →
As you probably know, an empty home can be a target for all sorts of crime. Every once in a while you might read a news story about an empty home that was broken into, damaged, or used by a gang for criminal activity. However, empty homes are targets for less violent forms of crime also. Specifically, it is easy to commit fraud when no one is checking up. Foreclosed homes, in particular, are a target. No one is looking out for them. The banks are too far away and much too busy to know what is going on with each of their properties. As a result, some individuals and/or companies have developed a new scam — they will claim that they have completed repairs on a property and file a mechanic’s lien, even if they have not actually done any work at all. When the property is ready to close, the bank will be… read more →
Many homeowners are in a situation where they have two mortgages on their primary residence — a first mortgage and a home equity line (or another type of second mortgage). In these tough times it can be hard to make either or both payments. There are many federal programs in place to assist with your first loan, such as HAMP, HAFA, or HARP. The good news is, there is also a program to assist with your home equity line or second mortgage. This is called the Second Lien Modification Program (2MP). If, and only if, your first loan is modified under HAMP, you may qualify for a home equity modification under 2MP. What are the criteria for determining whether or not you are eligible for a 2MP modification? First and foremost, you must be eligible under HAMP, and your loan must have been modified under HAMP. Additionally, you must meet… read more →
Last year, Congress buried a small provision in two lenghty pieces of legislation (the Patient Protection and Affordable Care Act of 2010 and the Small Business Jobs Act) that suddenly imposed “business-like” restrictions on people who were renting out so much as one small condominium. Owners of such property were suddenly required to track all work done on their property that cost more than $600. Moreover, owners then had to obtain particulars from the contractors who had performed such work, prepare 1099 forms for them, and then distribute the 1099 forms. Given that many landlords simply own one unit or rent out their own residences, second homes, or homes they’ve inherited, the requirement to prepare and distribute 1099 forms seemed particularly onerous. Most likely, many landlords would not even know about the new requirement and could later face penalties as a result. Apparently, Congress now realizes this. Last month Congress passed legislation to repeal… read more →
Effective December 2011, the Americans with Disabilities Act (the ADA) will apply to new or renovated timeshares and hotel condominium units (i.e. hotel condominiums that are rented out like typical hotel units)units). The ADA previously did not cover these types of properties. Any remodeling completed to these properties after December 2011 will have to take into account ADA standards, such as wheelchair accessibility through doors and corridors, grab bars in bathrooms, carpeting that is not too plush (i.e. a wheelchair or motorized device should be able to traverse the floor comfortably), accessibility to towel racks and paper towels in bathrooms, etc.
Many homeowners are having trouble keeping up with their mortgage payments. As a result, they are turning to their lenders, seeking loan modifications to find a way to reduce their monthly debt obligation. Oftentimes, those homeowners have already stopped making mortgage payments. Instead they are working with the lender in good faith to reduce their monthly expense. Unfortunately, the banks take a long time to process loan modifications. They are notorious for losing paperwork, asking for the same documents repeatedly, and not giving clear time frames for resolution. In the meantime, homeowners are waiting with baited breath to see if they will catch a break. However, many homeowners have found that they wait and wait and wait, only to find that the loan modification process essentially went nowhere. Instead, while the loan modification application is still pending, the bank foreclosed on the home. Since these homeowners were working with the bank… read more →
Last week, the Illinois Supreme Court formed a committee to look into the mortgage foreclosure process in Illinois. This new 14 person committee will include a representative from the attorney general’s office, bankers, attorneys, and judges. The committee will be charged with investigating foreclosures in Illinois — specifically, the committee will look into how various counties handle foreclosures differently, and what legislative proposals affecting foreclosures are making their way through the Illinois General Assembly. The Illinois Supreme Court hopes that the new committee will provide recommendations on improving the foreclosure process overall. As it stands now, many homeowners are confused about the court process that accompanies foreclosure. Additionally there is a great deal of variation in the process between counties. While the court is not trying to standardize the process throughout Illinois, it may be beneficial to have certain rules that are the same across the board. Hopefully the committee… read more →