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.

Are We In Another Real Estate Bubble In The US?

Owning a home is one of the most sought-after dreams that anyone can have. While the world is still reeling with a pandemic that seems to grow stronger by the year and the resulting economic recession, they take heart from the favorable real estate market that allows them to buy homes at record low mortgage rates.

While it may seem that a rapid increase in demand may lead to a real estate bubble, the opposite seems to be the case. A Warrenville real estate attorney from Covert Marrero Covert can guide you to the best decision.

Why the US Housing Market Can Avoid Another Real Estate Bubble

As more and more people opt to work from home in 2021, the value of residential properties across the US is increasing. As the world grows hopeful for a return to normalcy during successful vaccination campaigns, economic growth has been positive across the board. There has been a positive increase in high investments in the stock market along with higher consumer expenditures.

Both of these factors have impacted the US housing market amidst a housing boom that outperformed expectations. As of March of this year, the median home prices in the country increased by more than 11%.

The steady growth of the housing market has led many to wonder if we are in the middle of a new real estate bubble. As per market updates, as consumer demands coincide with the real estate season, a reduced number of homes have increased prices.

The news is heartening. While median home prices in the US are expected to be higher than those in 2020, the median mortgage rate is forecasted to remain around 3% at most. This alone should be enough incentive for homebuyers to lock in properties before the rates go up any further.

The expectation of a housing market crash is understandable, but so far, the data has proven that there is nothing to worry about at present. Like other economic sectors, the real estate market is susceptible to several factors. The patchy impact of the Covid-19 pandemic on the employment sector and the country’s overall income level will likely affect the 2021 housing market.

As such, there has been a slow but steady decline in home sales in 2021 on a monthly and yearly basis. This proves that the housing market is cooling down slowly after the buying frenzy of 2020 and 2021. The good news is that the decline is slow enough to prevent a large housing bubble from making a difference.

Contact an Experienced Warrenville Real Estate Attorney for Lucrative Investments

If you are interested in buying a home or investing in real estate, you need to have a dedicated Warrenville real estate attorney in your corner. This is where the real estate lawyers at Covert Marrero Covert can help. We are experienced in guiding clients such as yourself through complex real estate transactions that can result in great investments. Our professional attorneys are skillful in helping our clients with a range of real estate transactions to improve their portfolios. Get in touch with us for a consultation today and see how we can help you.

How To Protect Yourself From A Real Estate Market Crash

The stock market is not the only thing that can suffer from a bubble home prices can be affected by a real estate crash. During the notorious housing bubble of 2008, home prices plummeted to an all-time low and a large number of borrowers had to default on payments and foreclosures were at an all-time high. It lead to the greatest credit crisis and recession since the Great Depression.

While the crisis was the result of a series of factors, an Illinois real estate attorney will recommend that you protect yourself from the next crash by following these tips:

Determine When You Can Buy Or Rent A House

Houses are usually bought for long-term ownership. Most people stay in their homes for at least 10 years after they buy them, but the option to rent is available to them as well. So if you think that another real estate crash is imminent, rent especially if you don’t plan on living in the house for more than five years. The money you use to purchase can be recovered during this time but it may be too late to do so for you.

Protect Your Equity

While your home is a valuable asset, avoid borrowing against its equity unless it is completely necessary to do so. While emergencies can warrant a loan, avoid tapping into that solution unless you have no other source of funding. Interest rates can rise with some loans and equity can rise or fall. Paying minimum will become unmanageable down the line and if the market crashes, you may have to foreclose.

Conduct A Rating Analysis Of Your Savings Bank

Once you start earning, start saving some of your money as savings right away. Save the amount in a special account in a bank, a credit union, or a savings account. These establishments can host your account and offer growth in the balance at a specific rate.

Most banks and financial institutions invest extensively in real estate. So if the market crashes, they go down as well. In other words, if you want to save yourself from this crisis, evaluate your account holder with professional analysis ratings. These can let you know if the establishment that is hosting your account can survive a market crash or not.

Why You Should Hire An Illinois Real Estate Attorney

Selling or buying a home is one of the most significant life decisions you can make. Chances are that you will spend all of your life savings on it. As such, knowing and safeguarding your rights as a buyer or seller should be one of your main concerns. This is where an Illinois real estate attorney from Cover Marrero Covert, LLP can prove valuable.

We have experienced real estate attorneys who can guide you in the often complex real estate process. We are determined when it comes to managing real estate transactions and ensuring our clients make the best decisions possible. This includes the large number of tasks that go into a house sale. Get in touch with us for a free consultation in any of our Warrenville, Naperville, or Schaumburg offices today at (630) 717-2783.

Reasons Not to Buy Foreclosure Property as Real Estate Assets

When an owner or homeowner defaults on mortgage payments, or when they are unable to repay their debts, their home is sold and considered as a foreclosure property by the bank, or mortgage lender to whom debts are due. To a real estate property investor, a foreclosure home can serve two purposes that include buying at a lower price as an investment and reselling it later at a higher price, or getting a new home at a cheaper price than the market equivalents. However, buying a foreclosure property can come with some pitfalls that need careful assessment before a purchase is made.

Considering the fact a foreclosure property purchase can be a complex process that may need legal advice, consulting a competent real estate attorney can help identify legal complications and the best strategies to navigate them, or refrain from a loss-making investment. Following are some complications real estate planners may face.

Low Asset Value

There is a high possibility the foreclosed property is sold at a lower value due to an economic downturn, bad condition, or an unsafe neighborhood. In an economic downturn, house prices may be down due to low resale value or multiple foreclosures in the neighborhood, making it hard for investors to identify any future value unless the economic condition improves. Finding a new buyer under dismal conditions can be a potential pitfall.

Funding issues

Finding loans for a foreclosure property is hard due to its already low value and dismal conditions. Moreover, because many foreclosure properties are bank-owned, they prefer providing their own financial structure that may not be favorable to an investor. Additionally, banks usually have little to no idea about the property and its condition itself, making it more difficult to make a real estate valuation or assessment as per the current condition. Their main reason to sell is to recover their old debts, rather than hold it as an investment.

Potential Repairs

Although the new property owner will do repairs and renovations to make a property look like a home, there is no formal quantified assessment of the work that needs to be done if a house is bought on auctions. Many houses come with conditions and delays before possession are given. It is also possible the house was subject to vandalism from prior owners, or crime in the neighborhood. These need careful legal assessment before a purchase is made.

If you wish to know more about closing a real estate transaction in Illinois or speak with an experienced real estate attorney, contact the offices of Covert Marrero Covert LLP at (630) 717-2783 and schedule a free consultation session.

What Happens the Day of Your Real Estate Closing?

Purchasing any real estate is a demanding experience, particularly when you don’t have the services of a competent real estate attorney. You look at many different properties before you find the perfect one. Constant communication between you, the real estate agent and the lenders leads to a final loan. Closing your real estate deal should not be as stressful if you have the right real estate attorney by your side.

What to Expect at a Closing

In Illinois, the residential real estate closing is generally held at the title insurance company. This company will act as an escrowee, who will be responsible for holding and distributing the funds. The title company distributes the funds towards the end of the closing and it offers protection to the buyer title, at the same time, maintaining the lender’s interest in the real estate been sold.

Bring All Essential Paperwork with You

Closing day is a major event. Make sure you are ready for your big day. Bring with you all necessary documentation and the closing amount you are liable to pay upon completing the transaction. Also, you will be required to notarize different documents. You need to ensure all paperwork is complete and properly processed beforehand. Also, you will be required to report all your gift funds – if you have any in your name. It’s essential to complete your documentation at least seven (7) days before closing day.

Prepare the Down Payment Amount

Preparing your down payment beforehand is one of the most important financial components of closing any real estate deal. It is important to ensure you have all your finances sorted and your down payment is ready. Your down payment will be made as an earnest money deposit, or good faith deposit, which is used to initiate an escrow. You will have up to three (3) working days to deliver the amount with a signed contract to balance the down payment dues before closing day.

Verification of Escrow Account Information

If you already have an escrow account to hold your cash until the closing day, it’s essential to verify all your account details and other information. Make sure to double-check the amount required for you to close the deal.

If you wish to know more about closing a real estate transaction in Illinois or speak with an experienced real estate attorney, contact the offices of Covert Marrero Covert LLP at (630) 717-2783 and schedule a free consultation session.