Author: Brian Covert

How To Talk To Your Children About Divorce

When you get divorced, telling the children is one of the most challenging parts. However, many people and their kids have gone through a divorce and dealt with the challenges, and you can, too. Keep reading to learn how to talk to your kids about divorce, and contact our divorce attorneys in DuPage County if you have legal questions.

Plan What You Will Tell Them

Psychology Today stresses the importance of putting your kids first when talking about divorce. This means carefully planning what you say and not allowing hurt or anger to come through. Experts recommend telling them on a Friday or Saturday evening. However, you should not tell them the news on a holiday or before they go to bed or school. They will need some time when they are not rushed to process and accept the news.

Tell The Kids Together

You should tell the kids simultaneously so they do not hear the news from the other sibling you told first. If your children are of different ages, share the basic news, then tell them more information separately that is age appropriate.

Do Not Blame

Remember, the focus is on the well-being of your children, so do not blame your spouse for what is happening. If you attack the other party, your children will feel stuck in the middle. Instead, try to focus on the conversation on ‘we,’ meaning you and your spouse, such as ‘we are not happy together anymore,’ or ‘we both want to stop arguing, and it is best if we get away from each other.’

How Much Divorce Information Is Too Much?

Another issue is how much you should tell your kids about what is happening. The kids’ ages and level of maturity are significant factors that determine the information you give them. Here are some helpful guidelines:

Small Children

Children younger than grade school usually do not fully understand the situation, its finality, or that each parent will still love the child if the home situation changes. Therefore, when you tell young children, you should use language that tells them you and your ex still love the children, and that will never change.

Grade-School Kids

Kids in grade school have a better understanding of divorce, but younger ones still might not understand it is not their fault. They also may think often about their parents getting back together, even when that is unlikely. So when you tell the kids you are splitting up, tell them how you feel about it clearly and calmly so they see an excellent way to process how they feel.

Teenagers

Teens may get upset about a divorce and feel resentful or frustrated. When you tell them, ensure they know you do not want them to hide their feelings about the situation. Also, communicate to them what is acceptable regarding how they express any negative feelings about the divorce.

Call Our Divorce Attorneys In DuPage County Today

If you are going through a divorce, it is difficult to have the best outcome without the assistance of an attorney. Speak to our divorce attorneys in DuPage County at Covert Marrero Covert LLP at (630) 717-2783 for legal assistance.

How Short-Term Rentals Have Impacted Real Estate Prices

In recent years, real estate websites, such as Airbnb and HomeAway, have affected the real estate market nationwide because the supply of short-term rentals has increased eight times since 2011. As a result, Airbnb and similar short-term rentals (STR) have become highly popular investments that look to continue for the foreseeable future.

However, there has been considerable debate in many cities about the impact of short-term rentals on the availability and prices of real estate. Many say an ‘Airbnb effect’ hits many communities as hosts term their properties into STRs, which removes housing stock from the local markets.

An article in the Harvard Law & Policy Review states that the short-term rental market affects the availability of affordable homes. The thinking goes that a short-term rental is effectively removed from the long-term rental market and is part of the area’s hotel room supply. This leads to higher rent and real estate prices, which may affect how much home people can afford to buy. If you are interested in purchasing real estate, our Illinois real estate attorneys at Covert Marrero Covert LLP can help.

Other Studies Show Short-Term Rentals Affect Rents And Real Estate Prices

A 2016 study by the University of Massachusetts determined that home sharing in Boston led to higher rents. This happened because they decreased the number of available homes and apartments to residents.

In addition, a study in New York City by the Comptroller’s Office found that the increased availability of short-term rentals cost city residents $600 million in higher rent in 2016 because of less long-term housing availability. Reduced housing stock availability also increases purchasers’ real estate prices.

Another study in Wisconsin determined that doubling rentals by Airbnb in a neighborhood in the state increased real estate prices by at least 10%. According to the report, this tends to happen most in rural areas, while urban areas see fewer effects.

Nashville Banned Some Short-Term Rentals In 2019

The effects of short-term rentals on home rents and prices in Nashville came to a head in 2019 when Nashville Metro Council set an end date for new STR permits in residential neighborhoods. The Council cited severe concerns about the effects on home prices, the availability of affordable homes, and life quality. In addition, many homeowners argued at the time that they did not buy a home in the area with the idea they would have a small hotel next to their residence.

The ban on additional permits in the Nashville area began on Jan. 1, 2022. The Council also stated during legislative debates that the increase in STR in the Nashville metro area had lowered housing stock and increased prices.

Contact Our Illinois Real Estate Attorneys Today

Many believe that renters and home buyers across the US are paying higher rents and prices because of STRs. However, short-term rentals are often a profitable real estate strategy for investors and should be considered part of your portfolio. If you want to buy or sell short-term rentals in Illinois, you should work with an experienced real estate agent and attorney to ensure every transaction goes well. Our Illinois real estate attorneys at Covert Marrero Covert LLP can help, so call (630) 717-2783.

What To Do If Your Property Is Going Into Foreclosure

If your home is going into foreclosure in Illinois, it is understandable if you are stressed and unsure about the future. However, be aware that if you are behind on your mortgage payments in Illinois, the loan servicer will eventually start the foreclosure process by filing a lawsuit in court. However, it can take 12 to 15 months in Illinois to complete a foreclosure, so you may have time to work things out.

In this article, you will learn what to do if your property is going into foreclosure. If you need help, you can count on our foreclosure attorneys in Illinois at Covert Marrero Covert LLP to help.

Notice Of Breach

The lender is required to send you a breach letter at least 30 days before the foreclosure is filed. It must contain the total due to cure the default. If you cannot pay the accelerated debt, the foreclosure process begins.

When Can Foreclosure Start?

US law requires the loan servicer to wait 120 days after the last payment to start foreclosure proceedings. However, the process can start sooner if you have violated a due-on-sale clause or the loan servicer is part of a foreclosure action with another lienholder.

How To Reinstate The Mortgage Before Foreclosure Sale

Even if the foreclosure process has started, there are ways you can fix the situation. Reinstating means bringing the mortgage current when you pay the delinquent payments, including principal, interest, and late fees. Once you complete the reinstatement process, the foreclosure stops.

Illinois law states you can reinstate the loan within 90 days after you get a summons regarding the foreclosure. However, many mortgage companies will let you reinstate the loan if you do so at least a few days before the foreclosure sale. It is usually in the loan servicer’s interest to avoid foreclosures if possible.

Be Aware Of Deficiency Judgments After Foreclosure In Illinois

If your home is sold in a foreclosure sale, it may not produce enough money to pay off the full loan. The difference between what the home is sold for and the total debt is known as a deficiency balance. Illinois law allows the mortgage lender to obtain a personal judgment – a deficiency judgment – for the amount owed.

Foreclosure Sale And Eviction

In the State of Illinois, before the foreclosed home is sold, a sale notice has to be put in the newspaper for three weeks. You also must be notified by mail at least 10 days before the foreclosure sale.

Call Our Foreclosure Attorneys In Illinois Today

Illinois foreclosure laws are complex, and lenders and servicers may make errors or skip steps. If you believe your lender or mortgage loan servicer did not follow the foreclosure process correctly, you could have a case that makes the company restart the foreclosure process.

Contact our foreclosure attorneys in Illinois at Covert Marrero Covert LLP at (630) 717-2783 if you are facing foreclosure. We may be able to help to save your home and provide other legal options available to Illinois residents.

How Rising Interest Rates Are Impacting Mortgage Rates

Anyone interested in buying a home with a mortgage has probably heard about rising mortgage rates recently. Rates have been steadily climbing since 2022 and are almost double what they were a year ago. Whether mortgage rates go up or down, underlying interest rates set by the Federal Reserve always affect them somewhat.

Learn more below about how rising rates are affecting mortgage rates. Then, if you need help with your next real estate transaction, the Illinois real estate attorneys at Covert Marrero Covert LLP are ready to assist.

Why Do Mortgage Rates Go Up With Interest Rates?

When underlying interest rates rise, mortgages are more expensive than their rates. This makes buying a home more costly for most Americans. When homes cost more to purchase, this usually slows the housing market.

Experian explains that when the Federal Reserve raises rates, it alters its target for the federal funds rate. This is the rate that the board of the Fed advises banks to charge when they provide loans to other banks.

For the most part, banks put 3% on top of the federal funds rate when establishing the prime rate for customers. So, for example, the federal fund’s target rate was 1.75% in July 2022, and the prime rate was 4.75%.

If you have a fixed-rate mortgage already, the good news is the rising mortgage rates do not affect you. However, if you have an adjustable-rate mortgage, the increasing rates could cost you more when the fixed period expires.

What Happened In 2022 To Mortgage Rates?

In 2022, the US Federal Reserve raised the federal fund’s interest rates several times due to rising inflation. Increasing interest rates make borrowing money for homes, cars, credit cards, and much more expensive. Increasing interest rates is the primary tool that the Fed has to slow the economy and tame inflation.

While paying a higher interest rate on a mortgage is not what most people want, slowing economic activity reduces inflation, and that keeps prices for everything else under control.

For 2023, many financial experts expect we will have peak mortgage rates in the 6-7% range. Some expect rates to level off at around 5% to 5.5% in 2023. However, we may not see 3% rates again for a long time.

How To Save On Your Mortgage

When rates are rising, everyone wants to save on monthly payments. How? First, put down 20%, so you don’t have to pay mortgage insurance. Then, if you think you will only be in the home for a few years, consider an adjustable-rate loan for three or five years with a lower rate.

Contact An Illinois Real Estate Attorney Now

Are you interested in buying a home in popular Schaumburg communities like Haverford, Hidden Ponds, or Spring Cove? Then you will be interested in getting the best mortgage loan at the lowest rate. With so much turmoil in the real estate market and rising rates, now is the time to rely on an Illinois real estate attorney for help with the transaction.

Our attorneys at Covert Marrero Covert LLP can help with your next real estate purchase. Please contact our Illinois real estate attorneys today at 630-717-2783. Our attorneys work in the communities of Naperville, Warrenville, and Schaumburg.