Effective June 1, 2009, notary requirements relative to the transfer of 1-4 unit residential property in Cook County changed. The law, Public Act 95-988, is effective until July 1, 2013, and is designed to assist in the prevention of fraudulent property transfers. Under this new law, an Illinois notary must fill out a Notarial Record for every grantor whose signature is being notarized if the grantor is transferring a single family home, condominium, or other 1-4 unit residential building in Cook County. Each Notarial Record must state the form of identification used to verify the grantor’s identity. Such identification may include any ID issued by a state or federal agency, so long as the ID is current and not expired. Foreign identification is not acceptable. The Notarial Record must also include the grantor’s thumbprint. If a notary is an employee of an attorney, a title company, or a financial institution,… read more →
While it’s rare to see a windmill powering a home in Chicago and its neighboring suburbs, Congress recently passed a thirty percent tax credit as an incentive for people to use home windmills for power. An increasing number of such windmills are popping up in rural areas. How do home windmills work? Combined with electricity from your local electric company, home windmills are used to power your home. When there is little or no wind, the electricity kicks in. Home windmills are very expensive, and typically it takes years until you save enough money in utility bills to justify the cost of the windmill itself. However, because home windmills are so energy efficient, Congress is attempting to encourage their installation by providing a tax credit. Unfortunately, the reality is that it is very difficult to install a home windmill in an urban or suburban area. Neighbors will object, zoning ordinances… read more →
In a typical Illinois real estate sales transaction where no short sale or foreclosure is involved, seller provide three disclosures to purchasers: 1) the Illinois Residential Real Property Disclosure; 2) the Illinois Radon Disclosure; and 3) the Federal Lead-Based Paint Disclosure. But what happens in a situation where there is a short sale or a foreclosure? Which disclosures are required? Well, although the bank is involved in a short sale, the bank does not own the property; the seller is still the property owner, and all deeds, affidavits of title, and other documentation at closing is signed by the seller. TTherefore the Illinois Residential Real Property Disclosure Act and the Illinois Radon Awareness Act both apply. The federal statute regarding lead-based paint disclosures also applies. Bottom line — a seller in a short sale transaction must provide all three customary disclosures to the buyer, and the seller will be bound… read more →
Because of the recent economic downturn, many towns and cities have found that there is now a surplus of vacant homes within their city limits. As a result, vandalism, crime, break-ins and theft have all increased in many towns. Additionally, vacant properties are sometimes unsightly — the grass needs to be mowed, the yard might need maintenance, there could be some safety hazards, etc. To combat these problems, an increasing number of towns are enforcing or instituting vacant property ordinances. As an owner of vacant property, you should check if your town has a vacant property ordinance. You should also do everything you need to to keep the property in good repair, and to keep from running afoul of any municipal ordinance. Municipalities throughout Illinois have been working up a fairly strict set of rules to deal with vacant property owners. Some towns require a code inspection of all vacant… read more →
Under the Illinois Home Repair and Remodeling Act, contractors are required to follow a number of rules in order to enter into a valid and enforceable contract with a homeowner. One of the most important features of the Act is that it requires the contractor to maintain sufficient insurance to protect the property owner in the event of damage. Specifically, contractors must have public liability and property damage insurance of at least $100,000 per person and $300,000 per occurrence in the case of bodily injury. They must also maintain insurance of $50,000 per occurrence for property damage. Additionally, because sometimes repairs fail to comply with applicable state, county, or local ordinances, contractors are required to maintain public liability and property damage insurance of $10,000 per occurrence, the proceeds of which would be used to remedy such non-conformance, if any. Why is it that many contractors fail to maintain insurance policies… read more →
FHA loans help to make real estate more affordable by allowing you to obtain a loan with a relatively small down payment. In today’s market, you are required to put a substantial amount of money down for conventional financing, whereas you may be able to get an FHA loan with only 3% down. Because FHA loans are insured by the Federal Housing Authority, they are strictly regulated by them as well. But the Federal Housing Authority won’t insure your FHA loan for nothing. That’s where the Up Front Mortgage Insurance Premium (the UFMIP) comes in. The UFMIP is similar to regular mortgage insurance — it’s insurance you, as the borrower, pay for to cover the balance of your mortgage in case you default. However, the UFMIP is a bit more hefty. Typically, your premium will be about 1.75% of your loan amount (note the FHA changes the premium periodically —… read more →
So you’re trying to buy a home, but you have to pay mortgage insurance. What does that mean? How does it work? In a standard real estate transaction, a buyer puts at least 20% down. All buyers, however, cannot afford to do that. When you are putting less than 20% down, banks are concerned that you have not invested enough of your own money into your home. They are also concerned that you won’t be able to afford your monthly payment if your circumstances change. Mortgage insurance came about as a result of these concerns. Simply put, mortgage insurance is insurance for your lender in the event that you cannot make payments any longer and your lender cannot recoup its losses. How does mortgage insurance work? If you are putting less than 20% down and have only one loan, your lender will have to arrange for mortgage insurance for you.… read more →
During the past year, many Chicago tenants found out that they were living in a foreclosed home, apartment or condominium only when the sheriff’s office turned up at their door to make them leave. However, Chicago has laws to protect tenants from sudden evictions, and as a tenant you have the right to expect certain notices in the event of foreclosure. First of all, if you are signing a lease for a property that is the subject of a foreclosure suit, the landlord is required to notify you before you sign the lease. If the landlord doesn’t do that, you are allowed to terminate the lease. Second, if you are renting a home that becomes the subject of a foreclosure suit after you have already signed the lease, the landlord is required to notify you within seven days after the foreclosure is filed. Third, if the property you live in… read more →
On March 4, 2009, the Treasury Department issued new guidelines and created the Making Homes Affordable Initiative, part of which includes a program to modify loans, called the Home Affordable Modification Program. If your lender can service your loan under the Home Affordable Modification Program, you may be able to reduce your monthly payment to 31% of your gross monthly income for five years. Additionally, if you make all payments on time during each of those five years, you may receive $1000 principal reduction per year. Approximately four million qualifying homeowners will be able to take advantage of this plan. Are you one of them? To qualify, you must meet the following criteria: 1. The home must be your primary residence.2. The principal balance on your home must not be greater than $729,500.3. You must have obtained the loan prior to January 1, 2009.4. You can only modify your loan… read more →
If you are a cash-strapped homeowner with a loan from CitiMortgage, there may be help on the horizon for you. As more and more homeowners are trying to modify the terms of their loans in an attempt to avoid foreclosure, CitiMortgage announced a plan last week that may help. Under CitiMortgage’s new plan, dubbed the Homeowner Unemployment Assist program, some homeowners will be able to reduce their monthly mortgage payment to about $500 a month. To qualify, you must meet the following basic criteria: 1) You must be unemployed; 2) The primary mortgage on your home must be both owned by and serviced by CitiMortgage; and 3) The home must be your primary residence. In order to determine what other criteria may apply in your situation, you or your attorney should call CitiMortgage to discuss the possibility of a loan modification with them. You may be eligible for assistance, even… read more →