Real Estate & Property Law

Goodbye/Hello

Posted on March 13, 2009
This wasn't quite the celebratory transition I had in mind but life events have simply made it necessary so here goes...2-3 months ago now I finally got around to moving this blog's content to its own Website using Wordpress. That's what all the blog consultants out there say to get your own site so people like Google can't just shut you down (i...

Divorce the House Before the Spouse

Posted on February 10, 2009
Not necessarily my view but some interesting thoughts put forth here. Some bits from the article:?If you?re still linked through the house, than you?re not really divorced,? says Kelly Lise Murray, a Harvard-trained lawyer and Nashville real estate agent...

No Earnest Money: You Can?t Be Serious

Posted on February 10, 2009
Oh, but I am. Here?s Wikipedia?s definition: An earnest payment (sometimes called earnest money or simply earnest, or alternatively a good-faith deposit) is a deposit towards the purchase of real estate or publicly tendered government contract made by a buyer or registered contractor to demonstrate that he/she is serious (earnest) about wanting to complete the purchase...

An Interesting Retort From a Commenter

Posted on December 20, 2008
Thought I'd post a nice comment in full from a href="http://chicagorealestatelocal.blogspot.com/"local blogger/a and a href="http://www.rubloff.com/our_agents/info/eric_rojas"Realtor Eric Rojas/a. Like I tell my wife, disagreement is good, it provides more ideas rather than just agreeing with one idea...

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Ethanol Subsidies and No-Money-Down Mortgages?

Posted on December 20, 2008
Who would have known? a href="http://online.wsj.com/article_email/SB122937640286608173-lMyQjAxMDI4MjE5NjMxNzY2Wj.html"I saw this piece in the WSJ/a describing a mortgage program buried within the Department of Agriculture.br /br /span style="font-style: italic;"To be eligible for a USDA-backed loan, a borrower can't have income that exceeds 115% of the median county income, and the loans are restricted to areas with lower population density -- generally towns of no more than 25,000 residents...

New Tax Breaks for Homeowners

Posted on December 20, 2008
a href="http://www.kiplinger.com/columns/taxtips/archive/2008/tax1214.html"A nice little reminder/overview from Kiplinger's/a regarding end of year tax planning for homeowners.br /br /span style="font-weight: bold;"Notably, the new up to $7,500 tax credit for new homes brought from April 9, 2008, through June 30, 2009 and the Private Mortgage Insurance deduction for homes bought since 1/1/07...

A Second Wave of Mortgage Disaster

Posted on December 20, 2008
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It May Be Time to Think About Buying a House

Posted on December 10, 2008
I saw the piece over the weekend in the NYTimes but hadn't gotten around to reading it until today. It's been their most read article for nearly a week now so I thought I'd give it a skim. An important and true opening 'graph:Five or 10 years from now, when the financial crisis has ended and housing prices are up smartly once more, we will look in the rearview mirror and realize that we missed a golden age for first-time home buyers...

Mortgage Fraud Incidents up 45% Year-to-Year: We're #3!

Posted on December 04, 2008
Saw this reported here. Some snippets from the piece:Reported incidents of mortgage fraud grew by 45 percent in the second quarter compared to the year-ago period, as borrowers misstated their financial information to maneuver around tighter lending standards, industry data released Tuesday showed...

That?s the Problem, there was NO CANCER CLAUSE!

Posted on December 04, 2008
Saw this in a recent What?s Your Problem? column in the Trib. regarding a builder?s failure to return an elderly couple's earnest money deposit. A sad tale, the husband got cancer and subsequently died and thus the couple didn?t want to purchase the home...

Choosing a Real Estate Attorney

Posted on December 03, 2008
Nice video over on YouTube from a local practitioner I know well. Who'd have thunk it. I've had like 3 deals with this guy, good lawyer for your smallish condo development projects. Never knew he was high-tech. I don't think his firm even has a Website.

Guide for Single Woman Buyers

Posted on November 28, 2008
Saw a review of the above in the Sun-Times.

Developers Using Auctions to Sell Inventory

Posted on November 28, 2008
Thought this was an interesting overview reporting from a Florida real estate auction done to sell a developer's condos. I used to think of this as limited to the foreclosure scene but not anymore. We have a client who's going to do one of these shortly so I'm very interested and will be reporting more in the near future...

Questions to ask Prospective Agent?

Posted on November 28, 2008
Here's the story and the list from the Tribune's piece: ?How long have you worked in real estate, and how long have you been licensed? ?Are you a Realtor? What professional designations do you have, and what special skills do they certify? ?Do you work alone, or do you have an assistant or support staff??How often will we be in touch during the searching and buying process?? Can I look at homes without you? ?What makes you stand out among your peers, and do you have references from clients? ?Will you act as a buyer-broker, or do you represent the seller? ?How will you get paid, and may I have that in writing? ?How many other buyers are you representing?A fair list I suppose...

Citibank follows JPMorgan Chase's Lead

Posted on November 19, 2008
Here's the recent piece about Citibank's plan to impose a moratorium on most foreclosures as part of a series of initiatives aimed at helping at-risk borrowers remain in their homes. You'll recall we previously reported Chase's similar plan. I'm not sure how much longer Citibank's going to be in business themselves.

Buffet Buying Bargins?

Posted on November 11, 2008
Here's Mary Umberger's full column recently about HomeServices of America's (HSA) plan to expand its real estate business during the economic downturn. HSA is part of Buffet's Berkshire Hathaway Corp. Some excerpts:HSA apparently thinks the current sag in housing makes this the ideal time to spend some money, and has set aside a minimum of $200 million to expand its existing brokerages and to buy distressed realty companies at bargain prices, according to its chief executive, who told me the Minneapolis-based company is eyeing Chicago...

The Difference Between Real and Personal Property

Posted on November 07, 2008
That's the topic of Lew Sichelman's piece this week. But the real question is what's the difference between personal property and a fixture, Lew. And I think a thorough lawyer in a residential real estate transaction spends a good amount of time during his initial contract review with a client discussing fixture/personal property issues...

Face Tough Times, Don't Ignore your Mortgage Problems

Posted on November 07, 2008
Here's a nice recent overview from the Trib. of many of the "help" programs out there for homeowners...Hope for HomeownersDesigned for borrowers who are under water with their mortgage but can afford a new one insured by the Federal Housing Administration, the new program will insure up to $300 billion of refinanced, troubled mortgages into 30-year, fixed-rate loans...

Buy & Bail

Posted on November 05, 2008
Note HUD's recent announcement about the so-called buy and bail situation where you supposedly rent out your current home to get that income in order to buy a new home.

Massive Effort to Save Mortgages

Posted on November 05, 2008
Here's a broad overview regarding what all the big lenders are doing in terms of mortgage modifications from the WSJ.

JPMorgan Extends an Olive Branch

Posted on November 05, 2008
A couple key announcements from JP Morgan Chase here and here.The first piece outlines Chase's plan to halt new foreclosure filings for the next 90 days or so. The second examines their plan to expand their mortgage-modification program. Some program specifics:In addition to Chase loans, the program will also be offered to customers with loans held by Washington Mutual Inc...

My Experience in the Cook County Treasurer's Office

Posted on October 31, 2008
Just a brief follow-up from yesterday's post...So I took a little field trip today down to the Treasurer's Office in the County Administration building at 118 N. Clark Street to get my client's duplicate tax bill copy (client is out-of-state). And I would honestly give the office high marks for customer service! They have several people ready to assist you even before you enter the office so that you're not having to waste time up at the counters filling out paperwork...

Learn from a First Time Homeowner

Posted on October 30, 2008
7 tips from a first time homeowner (full article)...1. Owning a home is more than a mortgage.2. Always have cushion of cash for home repairs.3. You can save a lot of money as a do-it-yourselfer.4. But some jobs are worth hiring out -- if you can afford it...

The Opposite of Making a Bill Easy to Pay

Posted on October 30, 2008
I'm no Warren Buffet but I thought I heard somewhere that in business it's a good idea to try and make it as easy as possible for your customers or clients to pay your bills. I know we're always thinking about this issue with our monthly client statements whether it means accepting credit cards, sending statements via e-mail, allowing Internet bill pay, or just including a self-addressed stamped envelope so all a client has to do is write a check and drop it in the mail...

Mary and Me

Posted on October 27, 2008
I don't like Zillow nearly as much as Mary but I too do enjoy finding creative Buyer's incentives like this one from Mary's Sunday column:The latest: The Brixton Group has partnered with designer Matt Lorenz, winner of Bravo TV's "Top Design" competition in 2007, to offer his services to buyers at its C/A 23 condo development at 23 N...

Real Estate Publication

Posted on October 27, 2008
If you're an Illinois real estate practitioner you must subscribe to the ISBA Real Estate Law Section Council newsletter. And I'm just a humble ISBA member myself but for $20 a year you get a good newsletter that is published nearly monthly. As a former editor of an ISBA publication, I'll be the first to say some of them suck and aren't worth $20 but the real estate newsletter is excellent!Speaking of the above, October's edition had a couple good refresher articles on both condominium resale representation and navigating short sales...

Cook County Foreclosures

Posted on October 27, 2008
Thanks to the Tribune for a nice chunk of articles regarding foreclosures in Cook County. Here's the central article with some links within including some helpful hints and a timeline.

Another Case Study Regarding Why NOT to Buy New Construction Condominiums

Posted on October 27, 2008
I'm going to go to my grave repeating the mantra, "new construction condominiums are the worst type of property to purchase (repeat)." Because it's TRUE! Here's another story from the Suntimes...and this is a frequent happening and the facts in the story are pretty typical of the trouble with new construction condominiums...

MacArthur Foundation's Chicago Foreclosure Grants

Posted on October 17, 2008
Take a look at some of the places MacArthur's been making grants locally...maybe there's some help for your situation!

Cook Evictions to Resume

Posted on October 17, 2008
Here's the piece from the Tribune. It's hard to tell from the article what has changed although a new standing Order by Judge Kinnaird, presiding Judge with the Cook Chancery Division is referenced but I don't see it on the Circuit Court's Website. Anyone have a copy? I'll have to look around the chancery division the next time I'm down at Daley...

Making a House Look Like a Home

Posted on October 16, 2008
Make an empty home look more inviting:?Clean. Top to bottom. A fresh coast of paint will do wonders. Clean or replace the carpeting, redo the wood floors. Wash the windows, appliances and bathrooms. ? Spruce up the exterior. Trim the shrubs, throw down new mulch and paint the front door...

That's Tacky

Posted on October 16, 2008
I know they do nothing at the closing, but I find it really tacky when real estate agents don't show up at the closing and I just think it's bad business. It's like yeah I'll take my $10,000 commission but I'm much too busy to sit at a closing table for 90 minutes...

Special Assessment Escrow?

Posted on October 16, 2008
Just thought I'd mention this as another tool to use on the Buyer's side. I represented a buyer earlier this week at a closing and we used this to sock away $5k just in case there's a special assessment in the next six months. In my particular situation a review of condo board minutes over the last year suggested a couple big projects may be happening soon so I just wanted to protect my client...

Hope for Homeowners

Posted on October 11, 2008
Here's an overview of the program aimed at homeowners behind on their mortgages that was contained in the Housing and Economic Recovery Act of 2008 passed in July.You're eligible if?The home is your primary residence, and you have no ownership interest in any other residential property...

You're NOT a Circuit Court Judge, Mr. Dart!

Posted on October 10, 2008
Here's a piece from the Sun-Times regarding suit filed against the Sheriff for his failure to follow court orders.

Time for a Little Self-Help??

Posted on October 08, 2008
So if a court has given you possession of a property but the Cook Sheriff won't evict, how do you regain possession of a property?? Sounds like a funny little riddle, no? Well, probably not as funny if you represent many plaintiffs in foreclosure cases and you've now been told by the Sheriff that we're NOT going to follow court orders and we're NOT going to evict foreclosure tenants! Here's the Sheriff's press release.

Forensic Loan Audits

Posted on October 08, 2008
I read it about these for the first time here. You Walk Away is the company sighted in the article that does these though I'd imagine this is something many lawyers or accountants could accomplish. Here's a snippet from the piece:The reviews aren't cheap...

Hot Off the Presses

Posted on October 06, 2008
Just heard this from a reliable source:I'm happy to report that the City Council Finance Committee today unanimously passed Ald. Burke's proposed Ordinance to bar transfer taxes on the transfer of interest in marital home real estate pursuant to Judgment for Divorce or Separation,, including an amendment which I suggested making the proposal retroactive (to 1992!)...

Can FHA Shoulder Loan Burden?

Posted on October 06, 2008
An interesting read...FHA's volume up 10 times from its low just a couple years ago back when the sub-prime money flowed freely.

IL Attorney General Settles with Countrywide

Posted on October 06, 2008
Sub-prime superstar Countrywide Financial settled lawsuits with several states including Illinois regarding alleged mortgage fraud. I have a couple loans with good old Countrywide, not sub-prime but maybe there's some $$ in this settlement for poor, old me...

Condo Boards "Right of First Refusal"

Posted on October 02, 2008
Saw this little nugget from Oak Park's Village Board encouraging condo boards of managers to amend their declarations to no long allow for a right of first refusal. Here's the piece.The Oak Park Village Board this week passed a resolution intended to promote easier financing for condominium purchases by doing away with the authority known as "the right of first refusal...

Closing Real Estate in Michigan

Posted on October 02, 2008
I'm not sure what the closing costs are but the sales price: $1.75 for a home in beautiful Saginaw, Michigan. Sold on eBay.

36 Days and Counting!

Posted on September 29, 2008
Until your second installment of property taxes is due in Cook County. Hey, they beat last years December due date.2nd Installment Due Date - The due date for the Tax Year 2007 Second Installment is Monday, November 3, 2008.

How Smart of a Home Seller are You??

Posted on September 12, 2008
10 question quiz from Kiplingers...I missed one.

Vacation Homes and 1031

Posted on September 11, 2008
Saw a little nugget in the ISBA Real Estate Section Councils newsletter regarding whether you can do a 1031 exchange using a typical vacation home. I.e. would that sort of property be "held for productive use in a trade or business or for investment."Well, the tax court said no and here's the decision.

Be Careful when drafting Orders of Possession

Posted on September 11, 2008
Since one of my personal pet peeves is people who don't take responsibility for mistakes and blame others instead, let me say up front that I made a mistake! On Cook County's Orders for Possession there are 4 places where you write the Defendant's name and in a recent case I accidentally wrote the Plaintiff's name in one of those 4 places...

Chicago Transfer Tax and Divorce

Posted on September 11, 2008
Okay so we all know that it costs $7.50 per $1,000 of purchase price for the privilege of purchasing property in the City of Chicago. However, there are several types of transactions that are exempt from the transfer tax. Some of the obvious ones being transactions where consideration is under $500 and to correct former deed errors...

A Property's Walkability Score

Posted on September 03, 2008
I'm not sure walkability's a word but you get the gist. Here's the Website: www.walkscore.com. Some more data for you when considering a home purchase.

New Cook County Circuit Court Judges: Cook County Sheriffs Deputies

Posted on September 02, 2008
I saw this mildly concerning piece in today's Sun-Times regarding new procedures in the Sheriff's office regarding renter evictions where the eviction is resulting from a property owner's foreclosure. For those of you not familiar with eviction procedure in Cook County, a court gives you what's called an Order for Possession for a property...

The Home Equity Door Slams Shut

Posted on August 21, 2008
I suppose no surprise that lenders are tightening up on HELOC funding as reported here by Kiplinger's. I still advice Buyer's post-closing to open up a line of credit if possible...you don't have to use it but it's nice to have it available in an emergency.

Does this Really Happen?

Posted on August 21, 2008
Saw this piece in the Times regarding letters that low ball Buyer/Offerers send to Sellers accompanying their low ball offer. Here's one example from the piece:Dear Seller:I?m writing to let you know that I would like to make a bid on your property. I love the area and am committed to buying a house nearby...

Should U File a Tax Assessment Appeal?

Posted on August 21, 2008
Oh that's a question I'd answer on a case-by-case basis but here's a decent Tribune overview.

Condo Trouble w/ FHA Loans

Posted on August 21, 2008
Just catching up on my real estate reading and saw this piece from a couple weeks back in the Trib.'s real estate section regarding FHA restrictions related to buying condominiums. Here's the money 'graph:FHA rules wreaking the most havoc locally are a requirement that a building must have four or more units...

New Housing Bills

Posted on July 25, 2008
Take a look at the Housing Bill passed in the House yesterday and expected to pass Senate today or tomorrow and the President has suggested he'll support...here's a nice overview.Couple tidbits...new tax deduction for first-time home buyers of $7.500 or 10% of the purchase price, whichever is smaller...

Interesting Market Analysis from Zip Realty CEO

Posted on July 25, 2008

My Recent Experience Representing a Foreclosure Buyer

Posted on July 24, 2008
I think this was my first experience representing a purchaser of property buying from a bank who now owned the property following a foreclosure. It was a good learning experience and surely different that a "typical" residential real estate purchase....

Employer Assisted Housing

Posted on July 12, 2008
For some reason I didn't see this item get through the General Assembly...the state approved a law giving employers a tax credit of 50 cents for every dollar they invest in Employer Assisted Housing (EAH). Here's the piece from the Christian Science Monitor...

Fannie, Freddie, and You

Posted on July 12, 2008
Now that's a fun group, right?An interesting article in the Times explaining how the recent troubles of Fannie Mae and Freddie Mac might impact the average home buyer or person with some average mutual fund investments. Has anyone ever really understood what the Fannie and Freddie do? And what's the difference between the two? Read he article...

Joliet "Blossoming"

Posted on July 12, 2008
Interesting overview piece in today's Tribune entitled Joliet blossoming into the place to be. It seems Joliet just passed Naperville to move into the 4th position in city rankings in the Land of Lincoln. Take a look at the piece. Joliet's one of those older communities with a gritty reputation but it definitely has some upside...

Tales from the Closing Table

Posted on July 12, 2008
We've all had our slow closings before for many reasons....slow wiring of funds, Seller/Lender slow in submitting figures to the title company or submitting wrong figures which then take time to be corrected, lender's loan processor goes to lunch during the closing and isn't available to give approval to cut checks, Buyer did a walk-thru the morning of the closing and there was water coming through the ceiling from the unit above, ect...

"Redfin" Mary

Posted on June 30, 2008
Mary Umberger touted Redfin's entry into the Chicago market in this week's column.That would be Redfin, the maverick start-up that operates mostly online and refunds two-thirds of its portion of the commission to its clients. Chicago is its eighth market.

Unfair "Combine" Criticism

Posted on June 30, 2008
I saw this little nugget recently that combines a couple of my favorite subjects, Illinois' "Political Combine" and the practice of real estate law. The piece touched on a lawyer close to DuPage County Board Chairman Robert Schillerstrom makin' some money off of the O'Hare expansion...

Tenant Friendly Courts

Posted on June 27, 2008
I wanted to share an experience from life on the circuit earlier this week that speaks to the above. I was in court ostensibly just to get a continuance and issue an Alias Summons. My client/landlord is in the process of suing two defendants, a landlord and a personal guarantor, for money and possession of a rental unit...

Touble in "Condo-ville"

Posted on June 25, 2008
Saw this sobering article entitled Collateral Damage for Condo Owners. It's a sad tale of the impact that foreclosures are having on unit owners who haven't had financial difficulty themselves when their fates are tied to others due to the shared responsibility that is condo living...

680--the New 620

Posted on June 25, 2008
I'm not a lender but I do know that generally higher is better when it comes to credit scores. This was a recent syndicated column from Lew Sichelman regarding the increased importance of high credit scores.Just a few months ago, a credit score of 620 would garner the best mortgage rates and terms...

Neumann Homes 1 Day Auction

Posted on June 23, 2008
Get yourself a deal from the misfortune of poor Neumann Homes:Twenty-six new homes and 23 partially completed homes are slated to be sold in an upcoming auction for a bankrupt home-building company. The auction will be at 1:30 p.m. June 28 at the Westin Hotel, 400 Park Blvd...

The Rule Against Perpetuities

Posted on June 20, 2008
I had to post a little something about this case...I mean how often does "The Rule" ever come up anymore? Ah that was fun learning early in my law school career.The rule against perpetuities at common law provided "that an interest sought to bedevised to be good must vest, if at all, not later than twenty-one years and nine months aftersome life or lives in being at the creation of the interest...

"Notice" Provisions Matter

Posted on June 14, 2008
Often times people get too casual regarding Notice provisions contained in contracts and it can be costly. Notice of course is simply how a party to a contract must communicate contractual issues to another contract party...it's whether you can fax an attorney modification letter or lease termination notice to another party...

No Change in FHA Loan Max in Chicago Area

Posted on June 13, 2008
I hadn't been following the issue that closely but saw this today regarding FHA loan maximums being increased around the country in several high priced markets but not in good old Chicago. We're still at $417K. The move was part of the Economic Stimulus Act of 2008 passed by Congress in February...

The "One Voice" Rule

Posted on June 10, 2008
Of course the originator of the "One Voice" Rule is the Big Tuna, Bill Parcells, of pro football fame. Wherever he's been head coach only he is allowed to communicate with the media. Other members of the coaching staff cannot. To some degree I suppose you can't argue with his success...

Mortgage Foreclosure Videos

Posted on June 10, 2008
Our friends over at Illinois Legal Aid Online have produced a nice series of videos giving an overview of the mortgage foreclosure process in IL.

It Works with Used Cars, Why Not Your Home

Posted on June 09, 2008
I'm speaking of ZipRealty's new "24-Point Inspected and Certified" sales program for their listed properties. Here's the news:ZipRealty's sellers can opt to have their home inspected by a state-licensed home inspector and offer the buyer a home warranty for a combined fee ranging from $500 to $560, depending on the state...

Top 5 Cities Surviving the "Housing Bust"

Posted on May 10, 2008
Charlotte, Portland (OR), Seattle, Dallas, and Boston according to SmartMoney. Texas has done amazingly well during this downturn...they've been like a separate country during the last year or so of general this malaise.And frankly if you actually look at the Chicago/Illinois figures instead of the falsely alarming headlines, we ain't so bad here...

Take a RepoHomeTour

Posted on May 09, 2008
Did ya see the RepoHomeTourChicago.com bus out in the NW 'burbs a couple weeks back? Hey more power to them I say...the foreclosure crisis can only fairly be seen as a business opportunity for people in a position to profit from it. The Trib. had a piece on the tours a couple weeks back...

Slow Times for Real Estate Sales and Real Estate Blogs

Posted on May 09, 2008
Forgive me for the dearth of postings lately. It's just kind of depressing in the whole field. I could post the quarterly foreclosure numbers or another monthly or quarterly drop in home sales. But I don't want to be a blogger based solely on secondary reporting...

Cook's Eviction Process In "What's Your Problem"

Posted on May 09, 2008
A pretty realistic example of how things work in Cook County evictions in this week's What's Your Problem column in the Trib. The column asks readers to write in about their problems and then the columnist gets involved to help and solve the problem. If you work in this field at all the story of the 88-year-old landlord isn't unusual...

Another More Personal Barometer of the Real Estate Market

Posted on April 29, 2008
Just wanted to post a quick nugget about a personal experience that might say something about the health of our Northwest Suburban real estate market. So one of the non-profits I'm affiliated with had a fundraising event over the weekend. A nice event with raffles, silent auctions, ect...

Another Reason NOT to Buy a New Build

Posted on April 26, 2008
There are many reasons NOT to buy a new-build home whether condo, townhome, or single family home...unknown property tax liability (no credit at closing), very limited warranty protection from developer, well-protected Seller (from liability that is), house settling (i...

The Long Term Impact of Foreclosure

Posted on April 23, 2008
Here's the full piece from Ken Harney (He's syndicated but usually appears in the Sunday Trib...the best real estate finance writer going). But he brings up some facts that are new to me about the length of time that foreclosure or "walkaway" will impact you...

PowerPoint from IL Housing Development Authority

Posted on April 23, 2008
It's from their series of Homeowner Outreach Days that they've been holding of late.

IL Statewide Foreclosure Prevention Network

Posted on April 23, 2008
A statewide resource of 15 non-profit housing groups...888-995-HOPE.The Illinois Statewide Foreclosure Prevention Network is a coalition of 15 non-profithousing groups providing default and foreclosure counseling to families at danger oflosing their homes across the state of Illinois...

BofA to Drop Option ARMs

Posted on April 23, 2008
Probably a good move as Bank of America tries to spiff up its image as they try to get regulatory approval for their Countrywide buyout.

A House of Many Colors

Posted on April 22, 2008
Or just make sure you choose the right ones...at least if you're looking to sell your home. Here's the piece and the list:?Yellows, overall, are not selling.?Orange is popular outside the U.S. but isn't selling well here. An exception: deep corals as accents...

Question: Cook County Evictions

Posted on April 17, 2008
Do they ever answer their telephone? Anybody ever been to their window in Daley 702? You have to go there in-person to give them the Order of Possession to move forward with scheduling an eviction. Of course at least in regards to Cook County the word used shouldn't even be "eviction" any longer because that's no longer what is done...

A Fading Legal Precedent: The Merger Doctrine

Posted on April 11, 2008
Alright so the Cliff Notes definition of The Merger Doctrine (that doesn't do justice to my first year Property professor) is that in the context of a real estate transaction, all of the pre-closing agreements (generally the various contractual terms) "merge" into the deed at closing thereby extinguishing a parties right to sue based on a contractual term post-closing...

Those Evil Mortgage Brokers

Posted on April 11, 2008
Well, lets not over-generalize...I mean I don't like all those lawyer jokes.But, new research by the Center for Responsible Lending shows that subprime borrowers with brokered loans pay significantly more than their counterparts who deal directly with lenders...

So How Many Disclosures Must a Title Agent Make in a Real Estate Transaction??

Posted on April 11, 2008
I can't totally do this topic justice here, but a must-read for real estate practitioners is in the March '08 IL Bar Journal entitled "Ethics and the Attorney/Title Agent" (password protected) by Attorney Michael J. Rooney. Essentially he runs through the various conflicts of interest that exist in the typical real estate transaction where a Seller's attorney is representing a client but also acting as an agent of a title insurance company...

Property Values Do Go UP TOO!

Posted on April 11, 2008
I saw our friends down in Springfield passed legislation that would put Cook County on an annual reassessment schedule rather than our little triennials that I so now enjoy. Sounds like a tax grab and more expense for the Cook Assessors office.Here's the quote from the bill's sponsor:Rep...

Top 50 Markets by Affordability

Posted on April 09, 2008
Interesting list from Bizjournals...we check-in at 33/50 with 50 being MOST expensive. I'm a big San Antonio fan...nice climate, golf courses and not too far from the Gulf...here's to a second home there.

The Value of Home Staging

Posted on April 09, 2008
Here's the recent Tribune article. The premise of home staging is logical...something akin to appearance matters; of course. But a quote from the piece:Ninety-three percent of staged homes in the U.S. sell 31 days or less, according to Barb Schwarz, of International Home Staging, which offers a home-staging accreditation program...

Chicago "CTA Portion" Transfer Tax Refund?

Posted on April 09, 2008
Alright I'm confused already and it's only been effective 9 days...so we don't just have a real estate transfer tax in Chicago any longer now we have the "City's portion of the tax" and the "CTA's portion." Okay, the old tax (City portion) is the same old $7...

Lawyers: Single-Handedly Keeping the Chicago Real Estate Market Afloat

Posted on April 07, 2008
And we're leaping tall buildings in a single bound...Hey I'm just re-reporting from another source here: A study by Jones Lang LaSalle Inc.'s Law Firm Group has found that lawyers take up a healthy chunk of downtown Class A office space. It found that 14...

We Buy Ugly Homes

Posted on April 04, 2008
HomeVestors' top 10 cities for real estate investment:DALLAS - (April 3, 2008) - HomeVestors® of America, Inc., the company famous for its "We Buy Ugly Houses"® billboards and America?s #1 Home Buyer, has named the top 10 markets for real estate investing in the first quarter of 2008...

Tax Day is Coming...

Posted on April 01, 2008
So we all know the rule that if you've used a home as your primary residence for at least 2 of the last 5 years then you know $250k/$500k (single/married) in profit is exempt from capital gains tax upon sale. But even if you don't meet the two year rule, you might be able to shield some of those profits from taxes...

House Swap

Posted on April 01, 2008
or you might try HomeExchange.com.

Buyer's Incentive Idea

Posted on April 01, 2008
Saw this one advertised at a local Metra station...Seller offering to pay 6 months of Buyer's condo assessments. Only likely $1,200 to $1,800...but it's something.

Hillary and this Blog

Posted on April 01, 2008
Finally Senator Clinton's legitimate tie to this blog. Here's today's story about Clinton owing more than $3,000 to her alma mater, Maine South in Park Ridge as she starts to feel the financial strings tightening.And the tie to this blog...Well, I'm a resident of Maine Township and if Ms...

Words to Describe the Subprime Crisis...

Posted on March 29, 2008
I think it's the best description I've seen about the current mortgage malaise from my favorite former member of the Bush cabinet, Paul O'Neil:NYT: It?s so hard to understand how the subprime mortgage crisis has triggered a financial crisis of global proportions...

We're Top 10!

Posted on March 27, 2008
I guess it's not so bad here (maybe I'll stop trying to relocate). U.S. Census Bureau released the top ten growth metro areas from 7/06 to 7/07. We're seventh and the only Midwest location on the list. As for other large, Midwestern cities...get the net.

Congress, Competence and Combat Veterans

Posted on March 24, 2008
Did ya read how Congress included increased maximum mortgage limits in high-cost areas for Fannie Mae, Freddie Mac and FHA loans in the recently enacted stimulus package but did NOT include increased maximums for VA loans?While the limits of the other three programs now extend to $729,750 in the highest-cost areas, including Washington -- at least through Dec...

Home-Sharing for Cost-Cutting

Posted on March 24, 2008
Saw this overview regarding increased use of home-sharing programs for seniors in particular. It's akin to renting out a room in your home but it seems many senior-oriented social service organizations help with screening and matching. Look there's even a national association.

Closing Real Estate in Kendall County??

Posted on March 24, 2008
Yeah...now get out to Yorkville and build a development. Here's the piece reporting Kendall as the nation's fastest growing county. I think I'm more surprised about the 2.8% growth rate in DuPage...its really become a mature, slow growth county quickly.

Paying a Broker MORE To Sell Your Home

Posted on March 24, 2008
We've written about this previously here but I saw another take on the issue here from BusinessWeek. From the piece...Jim McCarty decided a year ago to give real estate agents an added incentive to guide buyers past the clutter of for-sale signs to his vacant four-bedroom house about 20 miles outside of Minneapolis...

A Phone Call From the Chicago Dept. of Revenue...

Posted on March 24, 2008
I thought I'd just mention with all this ragging on Chicago for the recent tax increases, I did get a personalized call from a Chicago Department of Revenue representative late last week informing me of the new tax and mentioning that they'd have a new transfer tax form up on there Website this week...

Re-Opened Cook Board of Review Appeals

Posted on March 19, 2008
Yikes, I almost missed this one, but from March 17 - March 31st, the Cook County Board of Review announced that it will reopen both city and suburban townships for property tax appeals where the filing deadlines had passed. Here's the Board's press release.

The Final Shoe Drops in Chicago

Posted on March 13, 2008
The Chicago City Council took its final step regarding the increased Chicago City Transfer Tax with the new $3 per $1,000 increase being shifted to Sellers. So in final analysis Buyer's are still at the $7.50 per $1,000 transfer tax (no change) and Sellers have a brand stinkin' new $3 per $1,000 tax...

Borrowers Hitting Refinance Snag

Posted on March 06, 2008
The Journal had an overview piece today regarding "new" difficulty that borrowers are facing when trying to refinance a primary mortgage if there's a second or home equity line also on the property.In the latest sign of how the credit crunch is hurting even borrowers with good credit, some home-equity lenders are starting to slam the door on homeowners who want to refinance their primary mortgages...

Perhaps "Appraise Out" Will Again Have Meaning

Posted on March 05, 2008
Fannie and Freddie appear ready to modify their real estate appraisal practices...FANNIE, FREDDIE OVERHAULING APPRAISAL PROCEDURESNEW YORK (Bloomberg) ? Fannie Mae and Freddie Mac, the biggest sources of financing for U.S. home loans, have reached an agreement with New York Attorney General Andrew Cuomo to buy mortgages only from lenders that adopt new standards intended to ensure independent home appraisals...

Playing Lowball

Posted on March 05, 2008
An interesting piece entitled, "How to play lowball and keep everyone happy."

The Sloppiest of 500...Follow-Up

Posted on March 04, 2008
I guess I don't really have it that bad. I was reading a little blurb from the great Gary R. Gehlbach in the February ISBA Real Property Section Council Newsletter (password protected) about "The absent buyers."The absent buyersHopefully this isn?t a growing trend, but twice in the last month I have appeared at a closing representing the seller, but neither the buyer nor anyone with power of attorney for the buyer was present or intended to be...

Dick Cheney and this Blog

Posted on March 04, 2008
Or real estate in general (i.e. the subject of this blog). Saw this nugget on my favorite political satire blog, Wonkette, regarding Cheney's pending retirement home in McLean, VA...right next to the CIA in Langley, VA. How fitting...

The Sloppiest of 500

Posted on March 04, 2008
Yeah, the SLOPPIEST closing in the approximately 500 transactions that I've been involved with as a practicing attorney...I guess as the market slows the depth of talent diminishes.So this is what happened last week...I was expecting a ho-hum closing, I had gotten involved in the deal late...

ANOTHER County Fee/Tax Increase

Posted on March 04, 2008
Saw this over at the wasserblawg regarding Cook County Recorder fee increases effective this past Monday. Essentially a $12 increase per recording...that's like a 30% jump on the typical deed.

Should I Buy or Should I Rent...

Posted on March 04, 2008
Should I stay or should I go now...Or as a recent piece asked, Should you buy or should you hold off? This piece had a great 10+ point checklist regarding whether or not to take the dive back into the "water" of the residential real estate market. My "feel," wait a year...

Miami Courthouse Closed..."Smells" Like the Cook County Recorder of Deeds

Posted on February 28, 2008
The Miami courthouse situation reported yesterday...A federal judge has closed portions of Miami's historic downtown courthouse after a report identified widespread mold infestation and ongoing water leaks, with one part of the basement termed "disgusting" by inspectors...

Proving There's a Special Interest Group for Everyone...

Posted on February 21, 2008
Enjoy the offerings of the Historic Chicago Bungalow Association. The Sun-Times wrote about them here.

I Need My Mokki

Posted on February 21, 2008
Nothing particularly relevant to "closing real estate in Chicago" but I like this article about a retired professor who needed his space so he built a mokki (cabin in Finnish) in his backyard w/o his wife finding out about it until it was completed. As a fellow introvert and wanna-be writer, I sympathize w/ the sentiment...

Good Deals and Good Values

Posted on February 20, 2008
Habitat for Humanity is opening a "Restore" store in Chicago Heights.The store, at 180 W. Joe Orr Road, will sell new or gently-used building supplies, furniture and appliances to professional builders and "do-it-yourselfers."

Environmentalism is NOT New

Posted on February 20, 2008
But this Green Home Chicago Website does have some useful info. Its goals:To help building professionals understand the market need for energy efficient buildings of the highest possible quality, andTo help home buyers understand what truly constitutes a "green building...

Sears Tower "Sprinting" for a New Tenant

Posted on February 20, 2008
Wow, first Chi-Town became the U.S. choice for the 2016 Olympics and now the U.S. Olympic Committee may be coming to town. Come, come, we're a midwestern, backwater town...not international nor cosmopolitan.Plus the Olympic Training Center remains out in Colorado Springs...

My First "Disclosure of Information on Radon Hazards"

Posted on February 15, 2008
So I got my first radon disclosure this week pursuant to the Illinois Radon Awareness Act. Not a lot to it...Seller must give Buyer some informational pamphlet and disclose any "knowledge" and records she has of elevated radon concentrations.What's "elevated"??Well, just don't test and don't acquire "knowledge" and you're fine...

Free CLE: February 18th

Posted on February 15, 2008
Yeah so Monday's another one of those dead President court holidays so instead of spending your morning slugging it out at Daley, come and break bread at the Loyola School of Law, Protecting the Rights of Chicago Tenants - 9 a.m. to 12:30 p.m. Seriously, you've got to know your Chicago Residential Landlord and Tenant Ordinance if you practice in this field and that's the gist of what this about...

Not a Bad Week...

Posted on February 09, 2008
Hey we saw two new residential contracts in the office this week...it's been a while since that's happened.

Should Ya Be a "Mortgage Walker"??

Posted on February 09, 2008
The WSJ had an Op-Ed on the subject Friday. The point of the article is essentially that an increase in people just leaving homes once they get behind on a mortgage is sort of the proper flow of the "market." In the author's view it's rational behavior:Borrowers acted rationally in response to market forces and incentives during the bubble: Buy a house because prices always go up; you can't lose...

Feeding the Combine: Part IV

Posted on February 09, 2008
Well, ya knew it was coming right? Of COURSE the Chicago City Council passed the $3 increase to the Chicago Transfer Tax. Who wouldn't say no to Mayor Daley's pleas about not having bus and train service if the tax increase isn't passed? Of course the $$ is going towards the CTA's pension fund for employees, not that bus route you take every day...

What if my Lender Closes or files for Bankruptcy??

Posted on February 06, 2008
Ummm...checkout this new publication from the Federal Trade Commission, "How to Manage Your Mortgage If Your Lender Closes of Files for Bankruptcy."

Know Thy "Care Contracts"

Posted on February 06, 2008
Jane Adler's always informative 55 Plus column had a nice overview of the various types of contracts out there that are being signed by seniors moving into "continuing care" communities. I'll say this, I'm no expert on these arrangements, however, we probably get one call a month about this general topic and it's important to have a basic working knowledge of these set-ups...

The Chicago Public Library Presents:

Posted on February 06, 2008
Home Buying 101...hey, and all its branches do have free WiFi. I'll get out of the office once-in-a-while and work at the Harold Washington Library downtown...but I digress:The Chicago Public Library is hosting two sets of free programs on home buying at various branches around the city...

Sweet...another Way for a Buyer to Terminate a Contract!!

Posted on February 06, 2008
Saw this interesting case (Muir v. Merano, No. 5-06-0626, IL 5th) recently interpreting provisions of the Residential Real Property Disclosure Act...a case of first impression looking at a Buyer's ability to terminate a contract when a Seller didn't provide the required disclosures...

Free Mortgage Advice...Fast

Posted on February 02, 2008
Here's a press release and their site.

Gone Fishin'

Posted on February 02, 2008
Field & Stream's top 20 fishing towns in the U.S. Minocqua, WI is great!

Ok so the Patriots WON Again...Now, it's Real Estate Season!!

Posted on February 02, 2008
Alright I'm posting this pre-Super Bowl so if it helps you win $$ here's my address. Giants fans, well, that's a good year for you guys. But the real importance of Super Bowl Sunday is that it's the start of the "spring" (we just got dumped in snow here so I use that term lossely) real estate season...

Feeding the "Combine:" Part III

Posted on February 02, 2008
Well the real estate crowd finally started attacking the proposed Chicago transfer tax increase late in the week. Where have you guys been?We've previously written about this here and here. Hmmm, we could have come out against this bill before it got passed in the General Assembly OR when it was voted on again after the amendatory veto when Blago added the senior free rides OR after the bill was passed and only the Chicago City Council had to approve the transfer tax increase (yeah Daley loses a lot of votes in the Council)...

"For Sale" Signs Often a Barrier to Refi

Posted on January 29, 2008
"Zillow" Mary had a good reminder article Monday about how one's ability to refinance a mortgage can often be hurt when the home has recently been listed for sale. There's nothing hard and fast on this or any firm time-lines but here's the key:That's because...

"Ozone Man" and Buying Real Estate

Posted on January 29, 2008
Saw this piece about buying "green" houses. The article has many good tips but what stood out was the guidance that the pricing is nearly at a point where the "green" homes are the better value...Five years ago, anyone who wanted to build an environmentally-friendly home could expect to pay a premium of 11% to 25%, depending on just how green they wanted to go...

A Statistical Anomaly??

Posted on January 29, 2008
Did anyone take a close look at the new home sales released Monday? Yeah they dropped 26.4% year over year, no surprise there. But if you look region by region here's the breakdown:The drop, which marked the worst sales year on record, represented weakness in every part of the country except the Northeast, where sales posted a 1...

Mortgage Brokers Beware

Posted on January 26, 2008
Anyone takin' a look at this Senate Bill 1167 recently signed by the Governor w/ an effective date of 6/1/08?? There are some pretty punitive penalties included for mortgage brokers.Here's an overview from January's ISBA Bar Journal:The law clarifies that brokers must verify that the borrower has the ability to repay the loan at the time it is made through proof and review of the borrower?s income, employment, and other financial records...

Tenant Procedures Changed Regarding Foreclosures

Posted on January 26, 2008
The IL Code of Civil Procedure has been amended to allow foreclosure tenants who are current on their rent to retain possession of their property for a designated period. 735 ILCS 5/15-1701. Section 15-1701(h)(4) provides that, in a case of foreclosure where the tenant is current on his or her rent, any order of possession must allow the tenant to retain possession of the property for ?120 days following the notice of the hearing on the supplemental petition...

A Plug for a Chicago Real Estate Blawger

Posted on January 26, 2008
Just a quick note about a "newish" blawger and frequent commenter here: Attorney Michael Wasserman and the wasserblawg. I'm not sure what a "blawg" is but he's got some good info. over there.

Feeding the "Combine" - Part II

Posted on January 26, 2008
A follow-up to our recent post here regarding a proposed Chicago Transfer Tax increase. From the sounds of it the increase to $10.50 per $1,000 from $7.50 is a done deal with a city council vote set for February 6th. Hey I'm no economist, although I am a weekly reader of The Economist, but I never thought it was great to raise taxes heading into a recession...

When there's Water Leaking Through the Ceiling...

Posted on January 23, 2008
grab an umbrella. But what next? I'm talking about condos here. We get consistent calls regarding this sort of scenario: Condo unit gets damaged due to water leaking through the ceiling from the unit above it. Of course first you call your neighborhood real estate lawyer...

And the Lawsuits Begin...

Posted on January 22, 2008
Saw this article over the weekend...it describes a lawsuit brought by a California couple against their real estate agent seemingly for breach of his fiduciary duty in allowing the couple to purchase a house that wasn't worth what they paid for it. It seems the suit originally included the mortgage broker and appraiser but they've both settled...

Seriously, an Energy Audit

Posted on January 19, 2008
The Weekend Journal had a piece here. Something to consider as the mercury broke the negative digits today in ChiTown. I mean I feel a draft here sitting next to the window in the library. Some guidance here from the Dept. of Energy.

Pay Your Property Taxes & Oh, and Never Trust...

Posted on January 19, 2008
the flunkies working at the desk of the government agencies when serious legal consequences are at stake.Saw this property tax case reported recently from the First District Appellate Court. In 2000 the property owner failed to pay her property taxes and the property was put up for auction in April, 2002 at the Cook County annual tax sale...

Buy your Second Home First?

Posted on January 14, 2008
Good or bad idea? There was an article over the weekend suggesting the above.The gist of the piece was to get the cheaper home first and start building equity instead of waiting until you're reading to drop $400k in the Chicago area.

Will County Real Estate Trouble

Posted on January 14, 2008
There was a front page overview piece yesterday in the Sunday Trib. regarding the state of the real estate market in Will County. Too long to summarize but what that piece really emphasizes is how broad the down market's impact is. Because Will County continues to grow about as fast as anywhere in the county and the job growth is there too.

Feeding the "Combine"

Posted on January 14, 2008
Anyone notice w/ all the political grand standing related to this state transportation bill fight that one of the funding sources for the measure is an increase in Chicago's real estate transfer tax which those of you in the field know is an already fairly steep buyer's charge of $7...

Association Trade Show

Posted on January 14, 2008
We've attended and presented at The Community Associations Institute Illinois Chapter annual conference and trade show in the past. It's coming up 1/19/08 in Rosemont.

The "HUB" for all things Radon

Posted on January 14, 2008
Well we're some 14 days into the effective date of The Illinois Radon Awareness Act. Recall you Sellers only have a duty to disclose if you have prior knowledge of unsafe levels of radon. Here's the IL Emergency Management Agency's Radon program with information on licensed "mitigation professionals...

Failure to Pay Use/Occupancy is NOT Grounds for Order of Possession...

Posted on January 10, 2008
Interesting landlord/tenant matter recently out of the First District:1st Dist. Circle Management, LLC. v. Olivier, No. 1-07-0621 (December 28, 2007) 3rd div. Reversed Trial court erred when it granted plaintiff, landlord, possession of apartment occupied by defendant for failure to pay the use and occupancy order during the pendency of plaintiff's forcible entry and detainer action...

One Stop Shop for Property Management

Posted on January 10, 2008
Rentingyourhome.com...advertised as a one stop shop for property management and landlords.

Real Estate Marketing Blog

Posted on January 10, 2008
Saw this blog referenced in the Times today: Future of Real Estate Marketing.

Second Half of '08 Looks Good for Real Estate...

Posted on January 09, 2008
Yeah and those polls showing Obama up by double digits in N.H. were pretty reliable too...But that's what NAR says here. I did have more closings in December than November, for the record. What's strange is that if you read NAR's release the facts are fairly dire...

What's In/Out for '08 from Mark Nash...

Posted on January 07, 2008
here it is...a pet shower? Yikes!

Auction Finder

Posted on January 07, 2008
National search engine for real estate auctions: http://www.naarealestateauctions.com/

Now if you're buying the Sears Tower...

Posted on January 05, 2008
Then this might be of interest to you:FEDERAL GOVERNMENT EXTENDS TERRORISM INSURANCE ACTWASHINGTON (realtor.org) ? President Bush last week signed a law extending the Terrorism Risk Insurance Revision Extension Act (TRIA) for seven years.The terrorism insurance program covers both foreign and domestic acts of terrorism, and it retains a $100 million "trigger level" for damages at which point federal assistance kicks in...

New Real Estate Resource from Crain's...

Posted on January 05, 2008
Saw this little nugget in the Crain's Chicago Business hardcopy: Chicago Real Estate Daily. It looks like it offers a free daily e-mail too.

Deed In Lieu and Right of Setoff

Posted on January 03, 2008
Interesting bankruptcy case touching on some fairly common residential real estate issues in In re Johnson (371 BR 336).The opinion starts with facts that seem rather unremarkable, the Johnson's got behind on mortgage loan payments and negotiated a deed in lieu of foreclosure with the bank...