What Will Rising Interest Rates do to the Real Estate Market?

Rising real estate interest rates impact sellers and buyers in the market. Hypothetically, house prices and property value are directly proportional to mortgage rates. However, the phenomenon is far from clear-cut. An Illinois real estate attorney will tell you that the economy’s health ultimately determines what rises and what falls.

The Link between Economy Health and Interest Rates

Rising mortgage rates will not affect house prices and property value much if the economy improves fast. So if, say, mortgage rates increase by a single point and increase monthly payments, a strong economy will allow employers to increase salaries to compensate for the increase in interest rate.

A robust economy acts as a foundation for job and salary growth. In this case, rising interest rates should not harm the real estate market. However, it seems home buyers and investors can expect increased interest rates this year. Here are some of the things they can expect if or when that happens:

A Reduction in Buyer Demand

Buyers may pull back slightly if interest rates increase to the point that homes become less affordable. If that happens, you can expect fewer bidding wars for properties on the market. As such, interested buyers may not have to resort to risky strategies that they were forced to use last year when interest rates were at the lowest they had been since 1971. A whopping 72% of buyers found themselves in a brutal bidding war.

Refinancing May Slow Down

Last year, rates were low enough that buyers had no qualms getting loans for refinancing that ultimately amounted to $1.6 trillion. Lenders were swamped with refinancing jobs, and real estate owners across the country were able to reduce their monthly payments and long-term interest costs significantly.

However, if interest rates increase this year, refinancing will also slow down, even if the former increases by a small margin. The refinancing process comes with additional costs and stress. Even a slight increase in interest rates may discourage investors and homeowners from going through the hassle of refinancing. It will also hurt their savings.

Price Growth Will Slow Down

The pandemic had one huge benefit for real estate investors and buyers who wanted new space and a fresh new perspective to overcome their stress. It led to rock bottom interest rates and thus highly affordable home prices.

Those trends have long passed, so property prices are expected to grow in 2022. Experts believe those may remain 2 to 6 percent most of the year and manageable.

Contact Covert Marrero Covert for Real Estate Advice

Whether you are a first-time home buyer or an experienced real estate investor, hire a dedicated Illinois real estate attorney from Covert Marrero Covert to enhance your portfolio. Besides handling everything involved in property sales, we can also handle short sales, negotiate with the mortgage company on your behalf and ensure you walk away with complete peace of mind. Get in touch with us for a consultation today before interest rates skyrocket! Don’t wait for those rates to rise before making important investment decisions.

What Are The Benefits Of Buying A Short Sale In Illinois?

If you are in the market for a new home, but money is tight, consider a short-sale property. These properties are sold for less than market value and less than the amount owed on their mortgage. Banks and lenders agree to short sales to recover some of the loans owed to them.

Top Benefits of Buying a Short Sale in Illinois

Here are some of the main benefits you can enjoy with a short sale:

Get A Home Below Market Price

Short sales can give you more value for your money, and you will also have some leftovers. These are never offered at market value so that you can get them at a great discount. Your Illinois short sale attorney can determine the true value of the property and help you reach an agreement that covers legal costs and repairs.

Get an Empty Unit

If the property has a tenant, your Illinois short sale attorney can ensure the ownership transfer is transparent and legal before the short sale. This includes making sure the tenant is out of the house at closing. The worst thing you can do is rent it back to the previous owner.

They already have bad credit. After getting a short sale, you can work with your realtor to develop a marketing plan for your new empty unit before you put it up for rent. Bring it up to standards first. You will have sufficient money left over to do that and more to make the property attractive to tenants.

Cooperative Home Owners

Homeowners whose property is in foreclosure are not as cooperative as those who put theirs up for short sales. In some cases, buyers may have to force the former to evict the premises, and the previous owner may also damage the property before they leave.

In comparison, most sellers are eager to complete a short sale if it means they won’t have to pay the outstanding mortgage. Short sales don’t hurt their credit as much as a foreclosure can. They can buy a new property later easily. This amicable relationship between you and the seller can speed up the short sale process so you can move into or use the property as soon as possible.

Contact Covert Marrero Covert for a Legal Consultation

If you are looking for a dedicated and passionate Illinois short sale attorney, look no further than Covert Marrero Covert LLP. Our lawyers have extensive experience helping clients buy properties on a short sale and sellers who have fallen behind on their mortgage payments. We leave no stone unturned to ensure you get the best deal. This includes a perusal of the paperwork for errors that can otherwise lead to costly mistakes. This includes legal liabilities you may not be able to handle later.

Get in touch with us for a free consultation today. We are not afraid to go to court if it means you get the best deal and are treated fairly during the short sale process. Remember, the selling agent will also be working with the bank. They may try to short-change you if they think they can get away with it. Our Illinois short sale attorneys can prevent that from happening and take legal action if necessary.

Chapter 7 Bankruptcy vs. Chapter 13

Declaring bankruptcy can be one of the hardest decisions you can make. Besides the emotional blow, it can have a long-term and negative impact on your credit and future finances. If you choose to declare bankruptcy, make sure you have experienced Illinois bankruptcy attorneys that can help you through the complex legal process.

Chapter 7 Bankruptcy vs. Chapter 13 Bankruptcy

The first thing they will do is ask you to choose between Chapter 7 and Chapter 13 bankruptcy.

What is Chapter 7 Bankruptcy?

If you file for Chapter 7 bankruptcy, creditors cannot contact you, and you can get your discharge within three to four months of filing. While you may have to sell off some property to pay unsecured creditors, you will not have to give up all your personal belongings.

There is no limit to the debt you should have to be eligible for this type of filing, but only people who have unsecured debts, no regular income that can cover living expenses, no non-dischargeable debts (such as alimony and spousal support), and who cannot commit to a repayment plan anytime soon can file for Chapter 7 bankruptcy. You can go for alternatives but do so only if you have a bankruptcy attorney in your corner.

What is Chapter 13 Bankruptcy?

If you have disposable income and not a lot of debt, Illinois bankruptcy attorneys recommend that you file for Chapter 13 bankruptcy. It involves a repayment plan involving amounts you can afford to pay.

Even if your creditors object to the terms, they cannot do anything once the bankruptcy court approves your filing. Unlike Chapter 7 bankruptcy, you can get the interest rate reduced and even the balance you owe on a car loan if you file for Chapter 13.

You do not have to give up non-exempt properties since creditors are compensated in a Chapter 13 bankruptcy. Once you repay debts in a three to five-year repayment plan, any unpaid debt is eliminated under this bankruptcy filing.

Which One Is Better?

Most people opt for Chapter 7 bankruptcy since it is more cost-efficient and cheaper than Chapter 13. They do that after taking a ‘means test’, which evaluates the size of their family, expenses, and income.

However, while Chapter 7 bankruptcy eliminates eligible debts such as loans and credit card expenses, you still have to pay your taxes and student loans. Plus, it does not protect assets from foreclosure or repossession.

Contact Covert Marrero Covert for Bankruptcy Filing

Whether you want to file for Chapter 7 or 13 bankruptcy, you need attorneys in your corner who can handle both. Book a consultation with bankruptcy attorneys at Covert Marrero Covert for a consultation today. We have worked with several clients in this regard and can aid you in all of your legal issues.

Contact us at our offices in Schaumburg, Naperville, Warrenville, and Illinois. We can also arrange an appointment at a convenient place for you if you want. All of our attorneys are compassionate by nature and will ensure you get the best solutions to your financial issues.

Are Foreclosures in Illinois on the Rise?

The Covid-19 pandemic has wreaked havoc on the real estate market. As people lost their jobs and companies shut down in the hundreds, many found their properties go into foreclosure as they failed to make timely payments.

The State Of Foreclosures in Illinois

According to a Foreclosure Market Report from ATTOM, foreclosures in Illinois were at an all-time high in 2021. It had the highest foreclosure rate in the country. According to the report, one in every 3,848 housing units had a foreclosure filing per month. Besides Illinois, other states that experienced foreclosures on a large scale included Delaware, Nevada, and New Jersey.

ATTOM discovered these national figures from foreclosure filings entered into its database. The data itself covered 3,000 countries across the nation and over 99 percent of its population. The company evaluated more than 200 metro areas and found that Rockford had the fourth, and Chicago had the third most foreclosures in the state.

The foreclosure process started in August when lenders couldn’t wait anymore. They foreclosed more than 8,000 properties across the country during that time. This was a 27 percent increase from the month before and an almost 50 percent increase from 2020.

A Light at the End of the Tunnel

Even though foreclosures were high in September, ATTOM Executive Vice President Rick Sharga believes they are far from historically normal figures. For example, foreclosure rates were almost 70 percent lower than pre-pandemic numbers, and the total number of foreclosure activities was just 10 percent less than that.

However, even though numbers seem to be normalizing, many borrowers are leaving forbearance programs. Only time will tell whether Illinois foreclosures will follow the same trajectory or slow down and return to normal levels.

The Five Phases of an Illinois Foreclosure

The foreclosure process can differ by state, but the common phases it follows are the same nationwide:

A borrower defaults on a loan.
The borrower receives a notice of default from the lender.
The county office records a notice of trustee’s sale.
The property is sold at a public auction. The lender becomes the property owner if it doesn’t sell.

Contact the Lawyers at Covert Marrero Covert LLP for Foreclosure Issues

If you received a notice for foreclosure on your property, know that it is not the end of the world. You may think you need to face the issue alone, but you don’t have to if you have sound legal representation. Get in touch with the dedicated Illinois foreclosure defense lawyers at Covert Marrero Covert LLP for legal representation. We can help you find the solutions you need.

The faster you act after receiving the notice, the better. We can help you develop a payment schedule, modify your mortgage agreement or even file for bankruptcy to stop the foreclosure. Just book a consultation with us at our Warrenville, Naperville, or Schaumburg offices.

Our attorneys are dedicated to aiding people who think they are cornered and have no way out of their dilemma. We have years of experience helping people like you who were in worse circumstances.

What You Should Do If Pulled Over For A DUI in Illinois

According to the National Highway Traffic Safety Administration, more than 47% of car accidents in Illinois are caused by drunk drivers. That is no small number and one of the main reasons the state has strict DUI laws.

What to Do If You Are Pulled Over For A DUI in Illinois

Whether you are a party animal or like to imbibe once in a while, there are some things you should and shouldn’t do if you are pulled over for a DUI in Illinois:

Pull Over Safely

Calmly pull over to the side of the road as soon as you hear a police siren behind you and see those flashing lights in your rear-view mirror. Make sure the area is free from traffic and do not get out of the car. Plus, do not drive erratically. It may make the police officers suspect that you are drunk. You may get another traffic violation as well.

Avoid Incriminating Statements

Besides offering your driver’s license, basic information, and registration, do not give any other information or statements when responding to questions. Tell the officer that you do not answer questions if asked about what you were doing or where you were going. This is important because you may incriminate yourself without realizing it.

While the officer will not be happy with this response and may try to threaten you into answering, hold your ground. If you are arrested because of your silence, the court will throw out your case.

Do Not Challenge the Police

You cannot be pulled over because the officer who saw you had a hunch that you were intoxicated. They have to see you do something illegal or out of the normal to prove their suspicions, such as erratic driving, driving with the headlights off, etc.

These issues will be discussed when your DUI lawyers in Warrenville work on your case, so do not challenge the officers. You may end up incriminating yourself.

Submit To A Breathalyzer Test As Per Your Judgment

In the state of Illinois, driving is considered to be a privilege rather than a right. This means you will get arrested if you fail a breathalyzer test (i.e., your blood alcohol content is 0.08 or more). As per the state’s consent law, all drivers have already been given the right to get tested under probable cause that they are driving under the influence. Besides breathalyzers, this also includes urine and blood tests.

If you refuse to get tested, your license will be suspended for a short period. However, if you refuse, you may be able to help your case. The prosecution will have to prove that you were intoxicated behind the wheel by providing irrefutable proof, often presented via breathalyzer results.

Contact Covert Marrero Covert for A DUI Charge in Illinois

If you have been charged with a DUI in Illinois and are searching for competent and experienced DUI lawyers in Warrenville, look no further than Covert Marrero Covert LLP. We have years of experience aggressively representing clients like you and will give your case the complete attention it deserves.

Get in touch with us today for a free consultation for your DUI charge or any charge involving car accidents in Warrenville, Naperville, and Schaumburg.