If you own a home built before 1978, there may be lead-based paint present in your home. Granted, you may have been through numerous remodeling projects, and you may have brand new drywall or paneling. However, unless you’ve had your home tested and confirmed that it is now lead-free, you have no way of confirming whether there is lead-based paint in your home or not. The U.S. Environmental Protection Agency (the EPA) has issued new rules, which will take effect on April 22, 2010. If you are doing any remodeling work in your pre-1978 home after that date, you may only hire contractors that are certified by the EPA. Specifically, the EPA will be certifying contractors in practices that are “lead-safe”. Of course, if the paint in your house is not being touched, then you may use any contractor you wish. However, most remodeling work does require at least some… read more →
If you qualified for a loan modification and were unable to work out a plan you could afford, and you otherwise qualify under the Home Affordable Foreclosure Alternative Program (HAFA), you should know what you can expect for participating in the program. First and most important, you will have a plan for completing a short sale or deed in lieu of foreclosure. Many short sales languish for months. Often buyers get fed up and walk out of the deal, just waiting for the seller’s lender’s response. HAFA is expected to speed up the short sale process; prior to listing the property, homeowners will receive pre-approved terms for their short sales. Second, and also important, you will be released from liability for any portion of the debt that is not paid. In other words, if you bought your home with a $300,000 mortgage, and sold the home for $250,000 in a… read more →
The new Home Affordable Foreclosure Alternative Program, or HAFA, is meant to assist homeowners who are eligible for a loan modification but cannot work out a payment plan they can afford. Instead of being foreclosed, HAFA assists such homeowners with the short sale or deed in lieu of foreclosure process. HAFA is voluntary, and lenders are not required to sign up for it. Do you qualify under HAFA? Here’s a checklist to see if you do: 1) Your loan is a Freddie Mac or Fannie Mae loan. However, you may qualify even if it is NOT a Freddie Mac or Fannie Mae loan.2) Your bank or servicing company signed up to participate in the Home Affordable Modification Program (HAMP) by December 31, 2009, AND your bank has also since signed up to participate in HAFA.3) The property in question is your primary residence.4) Your loan is the first mortgage on… read more →
As you may already know, Craigslist is a popular site on which people can post, among other things, homes or other real estate for rent or sale. Unlike an ordinary newspaper advertisement, Craigslist content is published almost immediately after a user submits its ad to Craigslist online. Craigslist does not charge the user for this service. However, Craigslist does not filter out advertisements based on the Fair Housing Act. A user can submit an ad with a statement such as “no minorities allowed” or “no children”, and the ad will be published nonetheless. As a result, Craigslist was sued (Chicago Lawyers’ Committee for Civil Rights Under the Law, Inc. v. Craigslist, Inc., 519 F.3d 666 (7th Cir. 2008)). Although the plaintiff argued that Craigslist should be required to filter the ads, and that the ads were only posted because Craigslist exists, the court disagreed and found in Craigslist’s favor. The… read more →
What happens in a situation where you own a condo, have an insurance claim, and the insurance company sends out an inspector who discovers additional damage? Well, a lot hinges on where that damage is — it is in your condominium or not? And it also depends on whether the damage, if outside your condo, caused the damage inside your condo. A recent case, Fichtel v. The Board of Directors of the River Shore of Naperville Condominium Association, No. 2 07 1237 (Ill. App. Ct. 2nd Dist., April 21, 2009), illustrates this point. In Fichtel, the plaintiff condominium owner had water damage in her unit and filed an insurance claim. State Farm, her insurance company, sent out an inspector to investigate the claim. During the course of the inspection, the inspector entered the attic space above the plaintiff’s unit to see if the water damage was coming from there. When… read more →
If you are the landlord of commercial space, be extremely cautious when drafting your lease provisions with respect to repair and replacement of portions of the leased premises. Commercial tenants should also review their leases carefully to determine what they are responsible for. In order to avoid any potential disputes later, it is better to be clear upfront and delineate responsibilities in detail in a manner that is consistent with what both parties have bargained for. Case in point: In Quincy Mall, Inc. v. Kerasotes Showplace Theatres, LLC, 903 N.E.2d 887 (Ill. App. Ct. 4th Dist., February 27, 2009), the commercial lease between the mall and the tenant, a theater, included a “general repair” clause with respect to the roof. Under the terms of that clause, the tenant was responsible for repairs to the roof. Eventually, the roof required replacement. When the mall failed to replace it in a timely… read more →
Sure, why not? A recent case, Clarendon American Insurance Company v. Prime Group Realty Services, Inc., Nos. 1 08 0791 and 1 08 1985 (Ill. App. Ct., 1st Dist.,March 26, 2009), specifically statest that if the landlord and tenant enter into a lease requiring the tenant to name the landlord as an additional insured, covering all losses, whether or not they occur as a result of the landlord’s negligence, then the tenant must comply with the insurance provisions of the lease, or be in violation of the lease. In the Clarendon case, the tenant argued that it was not fair for the tenant to have to procure and maintain insurance for the landlord’s negligent acts. The court disagreed — the terms of the lease were explicitly agreed to. Moreover, the court distinguished between insurance and indemnification. It is against public policy for a party to be indemnified for its own… read more →
As most landlords know, they cannot and should not discriminate against tenants or prospective tenants based on age, race, religion, gender, color, or family status. Pursuant to a recent amendment to the Illinois Human Rights Act, a new protected class is being added to that list — people protected by orders of protection. Note this new law specifically applies to people who are actually protected by the order of protection, not to people the order of protection has been obtained against. A landlord, or, for that matter, a seller of real estate, cannot discriminate against a potential tenant or buyer solely because they have an outstanding order of protection, whether that order of protection was issued by an Illinois court or an out-of-state court. As a landlord, if you enter into any leases, make sure that there is nothing in the lease that could violate the Illinois Human Rights Act.… read more →
The Homeowners Protection Act (HPA) is meant to help Illinois homeowners who are at least 30 days behind on their mortgage payments. Regardless of the homeowner’s income or the size of the loan, the law places certain requirements on lenders: 1) Lenders must notify homeowners in writing when the loan is more than thirty days past due. 2) Lenders must provide an opportunity for the homeowner to obtain housing counseling within 30 days. If a homeowner chooses to get counseling, he can contact any U.S. Housing and Urban Development (HUD) certified counseling agency. 3) In their written notice, lenders must clearly state that if the homeowner seeks housing counseling, the homeowner will receive an additional 30 day grace period. 4) Lenders cannot start foreclosure proceedings until they have provided this notice and allowed the counseling and grace periods, if applicable, to pass. If you are in a situation where foreclosure… read more →
For homeowners who are taking advantage of the Illinois Housing Development Authority’s (IHDA’s) Home Start program, down payment assistance may be available. The IHDA will loan you 3% of your purchase price, up to $6,000, if you meet certain criteria: 1) You must be a first-time homebuyer (unless you are a veteran). 2) You must qualify for and secure an IHDA 30-year fixed rate loan.3) You must meet purchase price guidelines.4) You must meet certain income requirements.5) You must be willing to participate in homeownership counseling. The IHDA’s down payment assistance loan has zero percent interest, payable in 10 years. Moreover, the loan may be forgivable. For more information directly from the IHDA, click here. Whether or not you qualify for this program does not affect your ability to receive the current $8000 tax credit for first-time homebuyers. For more information on that credit, click here.