It’s become harder and harder to find a condo that is eligible for FHA financing. Just when everything seems okay, the buyer finds out the association doesn’t have enough reserves. Or perhaps, the association has too many commercial units, like a shopping center on the first floor. Or maybe, too may homeowners in the association have been hit hard and are no longer making assessment payments. When these things happen, the unit becomes ineligible for FHA financing, sometimes dashing the buyer’s — and the seller’s — dreams of a purchase or sale. The good news is, the FHA finally revised its rules for condominium financing, making it a little bit easier to get approved for an FHA loan. For example: 1) If you are buying a residential unit in a condominium building where up to 50% of the space is allocated for commercial use, you can still qualify. Previously, the… read more →
There is one specific home I remember driving by often on my way home a few years ago. It was clearly foreclosed — the lights were never on, the yard was a shambles. Occasionally there was a sign on the door. But despite that, it looked like a beautiful house in a nice neighborhood, and I kept wondering when it would come on the market. Well, lo and behold, it eventually did come on the market. It must have been at least six months later, if not more. Apparently, there is a new tool out there that can give you more information about when a foreclosed home might make it to market, along with other details — address, the amount of the original mortgage and how much is still owed, an estimated price, and even details of how far along the property is in the foreclosure process (to help you… read more →
A recent case, Deutche Bank National Trust v. Gilbert, 2012 IL App (2d) 120164 (September 25, 2012), highlights how important it is for a bank to have standing — in this case, the bank must actually own the loan — when filing a foreclosure suit.In 2005, the defendant homeowner entered into a mortgage with Mortgage Electronic Registration Systems (MERS). At some point, he defaulted. In March 2008 the plaintiff, Deutsche Bank, filed a foreclosure action against the defendant. In August 2008, MERS assigned the mortgage to Deutsche Bank. The next month, Deutsche Bank amended its complaint and attached the assignment from MERS.The defendant claimed that Deutsche Bank did not have standing because it did not own the mortgage when the foreclosure was filed. While the trial judge initally agreed with the defendant, upon motion for reconsideration, he sided with Deutsche Bank.The home was foreclosed, and the defendant appealed. The appellate court found… read more →
The funds from February’s $25 billion national settlement are being distributed as we speak. Back in August, $4.7 million were given towards assistance for distressed homeowners and tenants in Cook County. A few weeks back, $4.5 million were earmarked for foreclosure assistance in Winnebago County, and northern and central Illinois generallly. Shortly thereafter, $1.4 million was awarded to provide legal assistance to renters in the Chicago area. The attorney general plans on distributing $20 million towards legal aid. As more funds become available, the organizations receiving them are hiring attorneys to assist distressed homeowners and tenants. If you are facing foreclosure, help may be just around the corner!
A recent case, Seth v. Aqua at Lakeshore East, 2012 IL App (1st) 120438 (September 26, 2012), provides insight on how courts interpret the portion of Section 22 of the Illinois Condominium Property Act (the “Condo Act”) requiring that developers present a copy of the condominium declaration to buyers purchasing new condominiums. In 2006 and 2007, the plaintiffs in Seth signed contracts to purchase units in a new development, Aqua at Lakeshore East. The condominiums were scheduled to be delivered in December of 2010. When they signed their contracts, plaintiffs received a Property Report with the proposed condominium declaration as an exhibit. The Property Report stated that the developer had a right to modify the condominum documents in certain respects. In September of 2009, the developer recorded the condominum declaration. It was not identical to the condominum declaration that had been previously presented to the plaintiffs. There were seven additional units, and the units had different percentage… read more →
We just found out recently that Illinois has the highest foreclosure rate in the country. Well, now homebuyers may have to pay the price for that. Fannie Mae and Freddie Mac want to increase the fees charged for the mortgages they acquire in Illinois and four other states. In all five states where Fannie Mae and Freddie Mac are trying to increase fees, foreclosures take an inordinately long time. In Illinois, for example, the average foreclosure takes well over 500 days. Fannie Mae and Freddie Mac feel that they need to recoup the increased costs they suffer as a result of this lengthy foreclosure process in Illinois, Connecticut, Florida, New Jersey and New York. Fannie Mae and Freddie Mac are increasing some of their fees nationwide effective December 1, 2012. The fees for Illinois and the four other states with long foreclosure processing times, however, are in addition to the… read more →
According to date recently posted by RealtyTrac, Illinois had the highest foreclosure rate in the nation in August 2012. Nearly 18,000 Illinois homes received a foreclosure notice in August; approximately 8,600 of those were new foreclosures, meaning the lender just initiated the foreclosure in August. Over 90% of the homes receiving foreclosure notices last month were in the Chicago area. Of those homes, most were in Cook County. 4,842 Cook County homes received their first foreclosure notice last month. Another 2,210 Cook County homes received a notice that their home was now foreclosed and scheduled for auction. Lastly , 2,035 Cook County homes were repossessed by lenders. Overall, there was a whopping 42% increase in foreclosure activity between August 2011 and August 2012. Foreclosure activity increased nearly 30% in just one month, from July 2012. What does this mean? Expect an influx of foreclosures on the market in the coming… read more →
A recent case, Franciscan Communities v. Hamer, 2012 IL App (2d) 110431 (August 28, 2012) clarified that only the religious portion of a property, the owners of which are seeking to reduce taxes based on the religious use real estate tax exemption, qualifies for such an exemption. The plaintiff in this case, Franciscan Communities, owns a retirement home in Lindenhurst, Lake County, Illinois. To live at this retirement community, an individual must pay an entrance fee (90% of which is refundable), coupled with a monthly service fee. In 2007, the entrance fees ranged from $127,596 to $332,608. The monthly fees ranged from $1,248 to $4,741. In 2007, the retirement home earned gross revenues of $17.4 million. The retirement home has a dedicated chapel. The plaintiff requested a religious use tax exemption in 2007and was denied. The denial eventually brought this matter before the appellate court. The court found that… read more →
A recent case, Citimortgage, Inc. v. Cotton, 2012 IL App (1st) 102438 (August 28, 2012), highlights the important of proper service on the defendant mortgagor in a foreclosure case. Mr. Cotton was a City of Chicago fireman who had a loan with CitiMortgage on a five-unit residential building in Chicago. The building went into foreclosure, and the process server hired by the lender attempted service on Mr. Cotton ten times at the building. He later filed an affidavit that he had attempted service ten times and was unable to serve Mr. Cotton. The bank had an alternate address for Mr. Cotton as well, also at an apartment building. Another process server eventually filed an affidavit that he had attempted to serve Mr. Cotton nine times at the alternate address, and was unable to serve him there either. Citimortgage then obtained permission from the court to serve the defendant via publication, and published in the Chicago… read more →
In February, the federal goverment and state attorney generals announced a $25 billion settlement with five large national banks for “robosigning” foreclosure paperwork. Illinois is receiving a portion of that money, somewhere betwen $1 – $1.5 billion. Our state attorney general announced her intention to distribute $20 million of the settlement funds for legal aid, and the first funds are finally filtering through. The Legal Assistance Foundation will receive about $4.7 million of the settlement funds. This money is intended to expand legal services to distressed tenants and homeowners in Cook County. Specifically, the Legal Assistance Foundation hopes to have twenty attorneys and paralegals working on cases involving distressed homeowners and tenants. They also plan to conduct seminars designed to provide legal traning in foreclosure defense and bankruptcy. Lastly, they hope to work with teh courts to improve the Cook County Foreclosure Mediation Program.