Why You Should Opt for Short Sales in Illinois Rather Than Foreclosure

Are you unable to pay for your home and fearing foreclosure? If you live in Illinois, you can avoid foreclosure by instead opting for a short sale. This sale sees a property sold for a lower price than the amount currently owed on the mortgage. Your lender may agree to it if you are unable to come up with enough money to pay back the complete amount or if you must move ASAP – for any reason.

This is preferable over a foreclosure because if your property is sold for less than the amount owed on the mortgage loan, you may be slapped with a deficiency judgment.

What Is a Deficiency Judgment?

A deficiency is the difference between the sale price of the property and the total debt owed. If the lender or the bank gets a deficiency judgment against you to recover the deficiency, they can employ various collection methods to do so. This can be anything from taking an amount from your wages or by levying your bank account.

Since Illinois is a judicial foreclosure state, the court handles all foreclosure cases and deficiency judgments. You can file bankruptcy to get out of it, but if you opt for Chapter 13, you may have to pay part of the debt.

Why You Should Opt For A Short Sale?

The main reason why you should opt for a short sale is to discharge the debt you’ve accumulated on your mortgage. If you have already done so by filing for bankruptcy, you can still use the sale to ensure your name is removed from the property title. Plus, you may also get some money after the closing.

In contrast, a foreclosure will take a lot longer than a short sale (approximately more than 800 days). During this time, you will still have to ensure the property is maintained and assume liability in case of damages. Additionally, the event can irreparably harm your credit score.

A short sale takes a mere four(4) to six(6) months to complete at most and once the property is sold, you will not be responsible for it at all. At that point, it will officially belong to the new buyer and not you. Plus, you can still live in the property for a while before the sale so you will have time to arrange other accommodations for you and your family.

Whether you are at risk of foreclosure or want to know all of your short sale options in Illinois, get in touch with Covert Marrero Covert LLP today. We have been representing clients in Schaumburg, Warrenville and Naperville, Illinois for years and will ensure your interests are protected at every turn. In fact, we can also arrange off-hour appointments for you if you cannot make it to our offices during regular business hours. We understand the stress and frustration you must be going through at this trying time. Get in touch with us for a consultation today.

A Brief Real Estate Checklist for Selling Property in Illinois

Are you selling a property in Naperville or Schaumburg, Illinois? If this is the first time selling a property, you may make costly mistakes. Here is a simple checklist you can use as a basic guideline:

Finalize the Transaction Agreement

The first thing you need to do is work out an agreement with the buyer, including the sale price and contingencies. In some cases, a buyer may refuse to sign a deal until they receive the funds for it or before they sell their previous home. In such cases, the presence of an experienced and meticulous attorney can prove invaluable. He/she review the agreement to ensure your understanding the agreement and the terms are clearly represented in writing.

Set a Final Closing Date and Arrange Closing Documents

The agreement should also contain the final closing date of the purchase in the closing document. The final date should be contingent on several factors such as yours and the buyer’s needs, as well as the time the buyer needs to arrange funds for the transaction.

The seller’s attorney will also prepare several important documents at the closing, which you should have your lawyer look at. This include the deed that transfers the title to the seller, the Bill of Sale proving the seller received the payments for the property, transfer tax forms and the settlement statement, which lists the money that was exchanged and who they were made out to.

Conduct a Home Inspection

The seller must be apprised of any maintenance issues the property has before the final price is set. To get an accurate estimate, hire a home inspector to go through the house to check for hazards such a mold, damaged plumbing and other issues that may need to be fixed before the sale.

If the house is being sold in its current condition, the price will have to reflect the maintenance costs the buyer will need to pay to fix those issues. All of those issues have to be disclosed in the Illinois Residential Real Property Disclosure Report.

Provide Letters Proving Appropriate Payments

Besides these three points, you also need to provide letters from Homeowners or a Condominium Association proving the property does not have any unpaid payments and all areas have been insured. Plus, you also need to provide letters from any lenders who hold mortgages to the property. It should also mention the amount that is to be paid to the lender at closing.

By keeping the aforementioned lists in mind you can ensure you remain on the right side of the law in Illinois as a real estate investor. At Covert Marrero Covert LLP we guide clients through complex real estate transactions to ensure they make informed decisions. This includes managing the large number of legal tasks and organizations that are involved in the sale. In other words, we can ensure all elements of your sale go smoothly till the end.

What You Need to Know About Chapter 7 Bankruptcy in Illinois

Filing for bankruptcy is never a pleasant experience, but with a professional attorney by your side, the process can be simplified. Here are some things you need to know about filing for Chapter 7 Bankruptcy.

If you file for bankruptcy in Illinois, you can make sure some of your property remains safe with certain exemptions. For instance, when you file Chapter 7 bankruptcy, the trustee can sell off property that is not exempt and use the money to pay off creditors, utility bills and loans. However, before you opt for this, you should determine whether it makes financial sense for you. Here are some questions you should ask yourself:

Will you have to give up property you would like to retain?
Will filing for Chapter 7 Bankruptcy give you enough funds to make it beneficial for you?
Can your creditors take your property or income, even if you don’t file for bankruptcy?

The answers to these questions will help you figure out whether filing for this bankruptcy benefit you, or if you are better with the alternative, i.e. Chapter 13.

If you think you can file, you need to submit some forms with the bankruptcy court. These documents will require the following information:

Your debts, properties, current income and monthly living expenses.
Property you own and the funds spent in the last two years.
Property you sold or gifted during the last two years.
Property you can retain legally, i.e. those that are exempt. This can be your home, furniture, clothing, your car, etc.

You will also have to pass a means test if you decide to go with this bankruptcy. In other words, if your disposable income is high, the Bankruptcy Code will determine you should opt for the Chapter 13 plan so some of the funds can be paid to creditors. The key to filing is to wait long enough to ensure you are eligible for Chapter 7.

However, if you are wallowing in debt and do not have cash to spare at all, you could pass the mean test. Rather than tackling these complicated calculations yourself, consider hiring an experienced attorney from Covert Marrero Covert. We can do the number-crunching so you don’t have to, and we can assist you in the filing process as well. We offer our legal services in Naperville, Schaumburg, and Warrenville, Illinois. Call us today and take the first step toward a fresh start.

Penalties in Illinois DUI Offenses

You don’t want to be caught driving under the influence (DUI) of alcohol in Illinois. State laws are quite strict and are enforced to ensure public safety. Penalties range from hefty fines to jail time, which can increase if the offense is repeated.

How You Can Be Convicted of A DUI

In Illinois, you can be charged with a DUI for:

Driving under the influence of alcohol
Refusing to submit to a BAC or breath alcohol concentration test
Having a BAC of 0.08% or higher
Being under the influence of drugs or a combination of alcoholic beverages to the point you cannot drive without causing an accident
Having THC concentration of five (5) nanograms or more in your bloodstream for two hours while you are in control of a vehicle. In other words, if you are too high to drive and are found behind the wheel of a car, you will be charged with DUI.

Even if you are not charged, you may still lose your driver’s license for a year. This can happen if you refuse to take a BAC. Refuse a second time, and you will have to carpool or use a ride sharing service for three (3) years because your driver’s license will be suspended.

Aggravated DUI

If you are charged with a felony in addition to a DUI conviction, this is considered an Aggravated DUI and results in a prison sentence. If you are on probation and are also convicted, you have to serve a certain amount of hours of community service. Fines can go as high as $25,000. Other penalties can differ – according to the circumstances of your case.

Besides a prison sentence, community service and penalties, you also can have a permanent mark on your driving record, lose your vehicle, lose vehicle insurance for three (3) years, must undergo regular alcohol/drug evaluations and attend mandatory administrative hearings.

At Covert Marrero Covert, our aim is to ensure our clients can get a lenient DUI case and this includes procuring a driving permit, which allows them to drive post-conviction, under special circumstances. We have helped several people in Warrenville, Naperville and Schaumburg with aggressive representation, and we can help you as well. Get in touch with us for a FREE consultation for your DUI case today.

What You Need to Know About Foreclosure Laws in Illinois

Foreclosure proceedings across the U.S. are based on a complex framework, which works around specific rules, laws and regulations. In Illinois, these are determined by the Illinois Code of Civil Procedure 735 ILCS Article 5, which deems lenders can sue borrowers who do not pay on time.

Many issues – including divorce to the death of a loved one, may have prevented you from making your mortgage payments on time, but that doesn’t mean you cannot fight it. As a borrower, you need to understand how the process works, as this will help you to preparing yourself for foreclosure or preventing it from happening.

How Foreclosures Work

In Illinois, mortgage payments must be paid on the first of every month, but if you can pay before the 15th, the payment will not be disputed. However, if it is processed after the 15th, you will have to pay a late fee.

If you also fail to pay the following month as well, you may receive a notice from the owner ordering you to pay in 30 days or opt for loss mitigation. You will face legal action with a second notice. If third payment is not made, the owner will file for foreclosure of the property. In Illinois, these are judicial notices, so you will get a court notice for not responding, which you will have to answer in 30 days.

If you fail to do this as well, the owner or foreclosing party will have grounds to sell the property at a foreclosure sale. However, if you decide to answer the summons by filing an answer and raise a defense, they may ask for summary judgment from the court in its favor. If their request is granted or your case is deemed invalid in court, the home will be foreclosed.

Receiving a notice for foreclosure can be one of the most stressful experiences in your life. The good news is you don’t have to go through the process alone. With an aggressive defense attorney from Covert Marrero Covert by your side, you can benefit from solutions that may never occur to you.

Since time will be of the essence, we make sure your case is handled in a timely manner. This includes offering a free relocation service, which can help you get back on your feet after the case has been resolved. If you live in Naperville, Schaumburg or Warrenville, IL, we can help you navigate the process and pick the option that’s right for you.