Will Short Sales And Foreclosures Increase In 2023?

Foreclosures and short sales may increase significantly in 2023 in Illinois and the US. Home sales are low, and prices skyrocket as inflation takes over the nation. However, there has been an increase in home sales in the state compared to 2021. So while foreclosures and short sales are at an all-time high, these sales may tip the balance in an investor’s favor.

Housing Costs on the Rise in Illinois

Today, potential homeowners in Illinois must pay about $8,000 to secure a property. This includes $5,000 yearly for the mortgage. Skyrocketing inflation, increasing mortgage rates, and high property taxes have much to do with this and have also increased the cost of living. It is little wonder why foreclosures have more than tripled in Illinois compared to last year. Most people cannot keep up.

Amendment 1 will potentially make this dire housing and living situation worse. If it passes, it will make housing unaffordable for most people in the state. On average, they can expect to pay an additional $2,000 in property taxes in the next couple of years.

During this time, yearly property taxes have increased by more than $1,000, equal to five additional mortgage payments for Illinois residents. In total, housing costs may increase by almost $5,000 yearly for the same home you would get in 2022. This does not include maintenance and homeowner’s association charges.

Foreclosure Rates in Illinois

According to Market Watch, in metro areas, foreclosure filings increased by more than 95%, and Illinois was not the only state to go through this. New Jersey and Chicago also experienced skyrocketing filings, but California, Tennessee, Ohio, Florida, and Illinois topped the list. The rates went back to pre-pandemic levels in the first half of this year, but they may normalize by the first half of 2023.

Most foreclosure activities are based on loans delayed more than 120 days before the pandemic or already in foreclosure. Most of them were protected by the moratorium placed by the government. In other words, it was only a matter of time before foreclosure rates normalized again.

If your home or any other property is in foreclosure or at risk of a short sale, you have more options than you think. A DuPage County short sale attorney can detail them for you and provide the necessary paperwork.

Where will you and your family go if you lose your home? The pandemic has wreaked havoc on businesses leading to income loss on a massive scale. But you can still recover with help from experienced foreclosure attorneys.

Contact Covert Marrero Covert LLP for A Consultation Today!

If you have received a foreclosure notice or want to know more about short sales, contact our DuPage County short sale attorney at Covert Marrero Covert by dialing 630-717-2783. You must get legal help as soon as possible and before your debts increase. Our attorneys cover all the bases and ensure your interests are protected.

All of our consultations are strictly confidential, and the first is free of charge. If you wish, we can accommodate an off-site meeting or a meeting after hours if you are too busy during the day. Our attorneys speak various languages, so communication is not an issue. We can develop a custom strategy to help you avoid foreclosure or other positive results.

What Crimes Are Increasing In Illinois?

Safety concerns are rising among Illinois residents (up by 36% in 2022) because of the escalation in violent crime rates. According to the 2022 report on Illinois crime rates, the state saw 4.3 violent crime incidents per 1000, compared to the nation’s average of 4.0. It also ranks among the top ten states for package theft and property crime.

4 Crimes Illinois Residents Are Most Concerned About

Only 42% of people in the state feel safe, and 64% have significant concerns about their daily safety. Listed below are the top four crimes residents are afraid might happen to them.

• Violent Crime

Violent crimes are those committed against persons involving threats or the use of force or a weapon. Primary examples include robbery, homicide, assault and battery, and sexual assault.

56% of respondents in Illinois worry about violent crimes happening to them compared to the national average of 41% in 2022. It’s the second year in a row that the state has seen an increase in violent crime rates.

• Package Theft

In Illinois, stealing items in someone’s possession worth $500 to $10,000 is a Class 3 Felony. 54% think package theft is one of their greatest worries and are afraid to carry valuable possessions outdoors (9% greater than the country average).

• Property Crime

54% of individuals worry about becoming the victims of property crime in Illinois compared to the national average of 42%, even though the property crime rate in Illinois has dropped steadily since 2019 and remained consistently below the country average.

A property crime rate of 15.6 incidents per 1,000 people has been recorded in the state in 2022 (down from 18.6). Nevertheless, people have a higher-than-average concern about this crime.

37% of respondents believed the COVID-19 pandemic affected their property’s security. As a safety measure, 32% of Illinois residents have installed security cameras, and 27% have invested in security systems.

• Gun Violence

Illinois has seen a significant increase in the number of people who experienced gun violence firsthand. Considering that the crime rate jumped from 8% to 13%, it’s no surprise that 83% of individuals believe gun violence is the biggest threat to their daily safety. Meanwhile, the country average stands at 53%.

The country’s highest mass shooting incidents were reported in Illinois in 2021, which injured 384 people and killed 59. The numbers rose from 68 in 2020 to 85 the following year, while the national mass shooting rate was up by 13% only.

Warrenville Felony Defense Lawyers at Covert Marrero Covert LLP Are At Your Service

If you’re accused of any of the crimes above in Warrenville, IL, please know that Covert Marrero Covert LLP is here to help in all possible ways.

Our Warrenville felony defense lawyers have years of experience representing defendants of property crime, gun violence, package theft, and violent crimes. They’ll investigate the case, collect evidence, and be your guide, protector, and confidant. Rest assured that they’ll negotiate the best deal with the prosecutor to ensure your rights are protected throughout the process.

Schedule a quick consultation today – call us at (630) 717-2783

How Rising Interest Rates Are Impacting the Real Estate Market

On May 4th, 2022, The Federal Reserve announced that short-term interest rates would increase by 0.50% to combat inflation and stabilize the economy post-pandemic. The rising interest rates have broken records and have had a noticeable impact on the real estate market, particularly for investors.

This is nothing new. Interest rates have historically been reduced to support an ailing economy by stimulating growth. It’s what happened during the recession and when the Covid-19 pandemic first hit. The downside was inflation, which increased interest rates, so businesses and people didn’t have to borrow money for large purchases.

What Rising Interest Rates Mean For Investors

When interest rates rise, houses become more expensive, and naturally, their demand reduces as well. In turn, this forces housing costs to decrease as well. However, the existing market is a bit different – there has been an increase in housing costs because of the following reasons:

  • Foreclosures impacted by the Covid-19 pandemic.
  • Millennials are old and established enough to afford homes.
  • Not as many single-family homes as there used to be because of labor shortages and supply chain problems.

Experts believe that while short-term investments are risky, investors can still look into long-term options that can provide better gains. You can withstand inflation with a property that can act as a source of income a few years later.

What Multifamily Investors Should Consider

You can go for a fixed rate when you refinance an apartment or buy a multifamily property, but you should look into other factors besides interest rates. These include:

Shifts in demographics

Demand is outpacing supply in the housing market as interest rates rise. However, as the economy recovers, more people may move into the cities from the suburbs. This can be a new market for you to tap into as an investor, including individuals looking for housing near their workplaces.

The local market

Real estate is mostly a local business, so look into your niche before refinancing or buying. Also, consider each property’s capitalization rate – these rise with interest rates.

The existing financing structure

Short and long-term loans may be affected by rising interest rates. Consider factors that affect mortgage rates, such as a 10-year treasury lead. These yields reflect investor sentiments on the economy. Rising yields may point to higher inflation rates and vice versa.

As interest rates rise, knowledgeable and proactive Illinois real estate attorneys can help you determine a solid plan of action regarding your real estate investments.

Contact Covert Legal for a Consultation Today

For more than four decades, the Illinois real estate attorneys at Covert Legal in Warrenville have been aiding real estate investors, and other clients reach their goals. We have experience preparing contracts, and negotiating sales for homes, vacant lands, and even commercial property. We have also represented clients in court for boundary disputes, title disputes, and other issues.

Contact us for a consultation today at (630) 717-2783!

Do DUI Arrests Increase in Illinois During the Summer?

Summer accounts for 28% of driving fatalities in Illinois and the US, making it the deadliest season. The Fourth of July, Labor Day, Memorial Day, and other summer holidays are considered the deadliest for DUI-related car accidents.

If you are charged, you can face hefty fines and jail time. The charge can also compromise your job prospects, harming your home life. Defense Illinois DUI lawyers can help you avoid such situations or reduce the charges.

How to Avoid A DUI During Summer?

Whether you are partying with friends or celebrating a national holiday, if alcohol is flowing freely, your chances of getting a DUI will increase exponentially. You can avoid punishing charges by following the following tips:

Have a Designated Driver

Before heading out to the festivities, ensure you have a designated driver. This individual should stay sober for the whole day so they can take you back home safely. Make sure this is a person you can trust not to drink.

Call an Uber or use Public Transportation

If you cannot get a designated driver, use rideshare options such as Lyft or Uber. You can also consider public transportation such as trains or buses. If you are caught drunk behind the wheel, and your blood alcohol content (BAC) is 0.08 or higher, you will be charged with a DUI. Better yet, hand your keys to someone else and tell them not to return them to you unless you are sober.

Obey Traffic Rules

If you have no choice but to drive home yourself and those drinks start to kick in, pull off the road safely and as quickly as possible. If you are not inebriated and have had a couple of drinks, obey traffic rules, so you are not pulled over.

This includes ensuring you remain within the speed limit and don’t look at your phone even if it starts ringing. Your hands should also be on the steering wheel at all times. You will be charged with a DUI if you are pulled over, and the officer smells alcohol on your breath.

Eat Something Before You Get Behind the Wheel

If you are drunk, ensure you eat something before you get behind the wheel. The food will slow down the effects of the alcohol on your senses. If your stomach is empty when you drink, your body will absorb the alcohol you consumed much faster. So make sure you eat some pretzels before getting in your vehicle or spread out your drinks, so your BAC doesn’t reach 0.08.

Contact Illinois DUI Lawyers If You Face Charges

DUI arrests can lead to severe punishments, from license revocation to extensive fines and jail time. The charge cannot be removed from your permanent record, which will impact your future. If you are charged with a DUI in Illinois, contact our Warrenville DUI defense attorney specializing in such cases. They can help you understand your options and find an appropriate way to fight back and preserve your future interests.

At Covert Marrero Covert LLP, we understand that most people who get arrested for drunk driving are unaware of how to proceed with a DUI defense. We have defended people charged with this offense for years and can help you understand your options. The last thing you need on your permanent record is a criminal charge that will follow you for the rest of your life. Contact us for a consultation today.

How Have Rising Real Estate Prices Affected Short Sales in Illinois?

Real estate market prices will continue to increase throughout the year, and sales are forecasted to decrease. In February, for instance, the median price in Illinois rose, but homes in the state still sold rapidly despite a sparse inventory.

At this time, the increase in real estate prices slowed, but the industry remained competitive. A short sale during this time may yield the same results that it would in a stable economy, but expect a faster sale. Experienced Illinois short sale attorneys can help you set up a short sale quickly and efficiently.

What is a Short Sale?

A short sale is a transaction in which a homeowner or borrower agrees to accept less than the mortgage amount they owe to a lender. Some lenders can forgive the difference, but if yours doesn’t, ensuring you get a reasonable price for your short-sale property is essential.

It is still preferable to foreclosure, especially if you are behind on your mortgage payments – you may be able to qualify for another mortgage once you can apply for one again. With the real estate market remaining competitive and rising property prices, a short sale can be a blessing in disguise for you.

If you could not make regular payments because you lost your source of income during the pandemic, a short sale can yield better results when real estate inventory is low and property prices are high. Your price for a short-sale property lies comfortably in the middle. It is neither too expensive for buyers nor too cheap for sellers (you).

Inflation and Short Sales

The housing market was already experiencing short supplies and high demands before the pandemic, and its arrival aggravated it further. Many renters found searching for affordable housing rugged, while homeowners looked for opportunities to sell high and increase space. As the demand increased, homeowners preferred to remain in their homes rather than sell them, which limited the number of sellable properties.

Prices are expected to increase throughout the year, and the number of sales may decrease. In February 2022, homes sold rapidly due to low inventory and high demand. During this time, the median price rose by 6.4% compared to last year.

For home sellers, especially those that place their property on a short sale, inflation is a good development. The value of your home rises as the property of goods rises. With demand high and supply low, investors and renters look towards short sales to get properties below market price even if it is higher than standard short sale rates. With experienced Illinois short-sale attorneys in your corner, you may be able to get a better price.

In this market, investors who invest in property as a leveraged asset have little choice but to pay the same fixed rate even if property values rise.

Contact Covert Marrero Covert LLP for A Consultation Today!

Whether it is on a short sale or not, selling a home is one of the most significant decisions you can make as a homeowner. It would be best to have experienced Illinois short sale attorneys in your corner with extensive knowledge about the current market rates, such as those at Covert Marrero Covert, LLP. Our attorneys have years of experience guiding clients through complex real estate processes that may otherwise lead to costly mistakes. Contact us for a consultation today!