Category: Real Estate Lawyer

Illinois Real Estate Market Forecast For 2023

Home sales declined and prices increased in the Illinois housing market in 2022 as mortgage rates rose. For example, 16,194 homes were sold in Illinois in May 2022, a 10% decrease from the previous year. Also, in May 2022, there were 11,641 homes sold in the nine-county Chicago region, which is a 10.6% drop from 2022.

What does the market hold for 2023? Keep reading to learn about the Illinois real estate market forecast for next year. Then, speak to an Illinois real estate lawyer at Covert Marrero Covert, LLP if you have a real estate question.

Housing Market Forecast For Illinois In 2023

Zillow reports that the median value of Illinois homes is approximately $267,000. The value of homes in Illinois has risen by almost 12% in the last year and 27% over the last 24 months. Home prices in the Chicago area will drop by approximately .9% in 2023. Here are some additional housing predictions for the Illinois housing market next year:

  • Malcomb, Illinois: 3.3% drop in home values by August 2023
  • Galesburg, Illinois: 2.8% drop in home values
  • Jacksonville, Illinois: 28% drop in home values
  • Taylorville, Illinois: 2.8% drop in home values
  • Charleston, Illinois: 2.7% drop in home values
  • Sterling, Illinois: 2.6% drop in home values
  • Danville: 2% drop in home values
  • Pontiac, Illinois: 2.6% drop in home values
  • Peoria, Illinois: 2.3% drop in home values

Illinois Listed As a Best State To Live In

While home prices will generally decline in Illinois in 2023, this reflects the trend occurring throughout the country during a time of high-interest rates.

WalletHub recently found that Illinois continues to be one of the best states in which to live. The 2021 survey found that Illinois is the #18 state to live in. It was rated as #3 in quality of life, #8 in safety, and #20 for education and health.

Also, statistics show that population and household growth lead to a boom in housing demand. A survey by the US Census found recently that the population of Illinois may be undercounted by up to 2%. So, population growth in Illinois could be higher than the statistics show. While house prices are dropping in Illinois for 2022 and 2023, this is mostly because of rising mortgage and inflation rates.

In the future, prices of homes in Illinois should rise again as inflation and mortgage rates drop. It could be a good time to buy a home in Illinois because of the reduced price growth in 2023. If you have a real estate transaction to consider next year, be sure to have it reviewed by a qualified real estate attorney.

Contact An Illinois Real Estate Lawyer Today

Whether you have a short sale, foreclosure, or other real estate action, the Illinois real estate lawyers at Covert Marrero Covert, LLP can help you. Please contact us today at (630) 717-2783. Our attorneys also serve the communities of Warrenville, Naperville, Joliet, and Schaumburg.

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.

How Home Loan Modification Lawyers Can Help You Keep Your Home During The COVID Pandemic

Why Hire A Home Loan Modification Lawyer

Home loan modification lawyers understand that Covid-19 has shut down several businesses leading to an unprecedented rise in unemployment rates. Naturally, if you don’t have a job, how can you be expected to pay your mortgage? That is a dilemma several homeowners are facing, with many on the way to foreclosure. However, you can avoid closure by hiring a home loan modification lawyer.

What Is A Home Loan Modification?

A loan modification is basically an agreement that you form with your lender to change the terms of your original loan, so you can make payments in an affordable manner. The main aim is to prevent foreclosure, which is a suitable solution for homeowners who find themselves without employment or funds to pay their mortgage on time.

In order to be eligible for a loan modification, the following requirements need to be fulfilled:

  • Your income is insufficient to make mortgage payments regularly
  • You experienced a financial hardship (such as medical bills resulting from a Covid-19 diagnosis) and you cannot afford to pay the mortgage as a result.
  • The property is your main residence

Other Options

The aforementioned is not the only way you can avoid foreclosure. If you wish to alter your current mortgage, your home loan modification lawyer can also help you modify it to an adjustable mortgage one, re-amortize loans, and acquire reductions in the principal amount that is owed.

You can also opt for forensic loan auditing to determine if any laws were violated with the loan you received. If the lender charged you a hidden or excessive fee he can be taken to task and sued. In some cases, foreclosure can be avoided.

According to the Illinois Mortgage Rescue Fraud Act, loan modification consultations cannot take an upfront fee. While this is illegal in the state, some consultants still try to charge thousands of dollars from their clients which they have to pay before they can be served. As per the law, you cannot be charged till the loan modification is successful and you avoid foreclosure. Naturally, searching for an attorney with a stellar reputation should be a priority.

Why Choose Our Home Loan Modification Lawyers

At Covert Marrero Covert, our home loan modification lawyers understand your frustration and stress in searching for trustworthy legal aid for your loan modification. We have years of experience and client testimonials that prove our trustworthiness and can help you find affordable solutions that can work for you. Get in touch with us for a consultation today at our offices in Warrenville, Schaumburg, or Naperville, IL.

3 Considerations You Should Make Before Buying a Short Sale in Illinois

Short Sale Indiana

When a property sells for less than the full amount owed, that means it has been ‘sold short’ or is a short sale. The process is known for being a great option for homeowners who wish to sell a property that has fallen in value. It is a good way to avoid foreclosure as well as all of the problems that come with it.

Each short sale is different and has several outcomes. To ensure you benefit from positive ones, here are some things you should do when you are searching for a short sale to buy:

1. Locate the Ideal Property

If you see a house in the listing that is priced considerably lower than ongoing market prices, chances are that the seller is trying to attract buyers for a short sale. Get in touch with the homeowners to confirm first but be cautious.

Several homeowners end up listing their property before they have permission from the bank to do so. This is vital because the bank ultimately sets the price. If that is the case, you will have to face a lengthy negotiation process. Chances are you will end up with a price point that will not give you a return on investment.

2. Research the Property

Examine the property before you make any purchasing decision. Ask the owners to provide documents on any unpaid back taxes, liens, etc. Plus, also determine how much the property will be worth once it is fixed up post-sale. You may also have to visit the county clerk a few times. Those efforts will help you get a complete picture of the property before you buy it so you will know exactly what you are paying for.

3. Involve the Seller

The seller or the property owners who are the sellers must inform their lender that they cannot pay off the remaining mortgage amount. At this point, it is important to realize that the seller is not going to profit from the sale. If you are trying to purchase a short sale from a seller who wants a commission for facilitating the sale, back out immediately.

If you wish to short sell your property, you should hire reliable real estate attorneys who specialize in that process such as the ones at Covert Marrero Covert, LLC. We are experienced in negotiating with mortgage companies to help sellers avoid pending balances and to ensure they can walk away with complete peace of mind. We have been representing clients in Schaumburg, Warrenville, and Naperville, Illinois for years. Get in touch with us today.

Your Basic Guide to Purchasing Real Estate in Illinois

The process of buying a home in Illinois has become increasingly complex over the years. While retaining a skilled real estate attorney from the start is a good idea, you should also familiarize yourself with the steps of the buying and selling procedure. Here are some things you need to know.

The Residential Purchase and Sale Agreement Defines Parameters

The Illinois Residential Purchase And Sale Agreement is a binding contract, which binds a seller and buyer into a legal agreement. It allows both to negotiate terms of the agreement with aid from third parties, such as a realtor. Once the contract is signed, it cannot be violated or broken in any way.

The agreement comprises relevant terms and conditions, such as the price, surveys, financing, the condition of the property and other elements both parties must come to an agreement on. The buyer must ensure the property undergoes proper inspections before he/she signs the agreement. Similarly, the seller has to make sure to give the buyer a standard state disclosure form.

Inspection and Loan Approval Is Mandatory In Most Cases

Most real estate contracts come with an inspection provision, meaning buyers have the right to hire a professional inspector to check for defects. Some may also allow buyers to request repairs to the property post inspection. Others may allow repairs as per a set dollar amount and some may also allow the buyers to cancel the deal if they think the property is beyond repairs.

Whatever the case may be, the buyer and seller attorneys will negotiate repairs on their clients’ behalf. Once the inspection period has passed, the attorney of the buyer will help his/her client with the mortgage contingency. This allows the buyer to cancel the transaction if he/she cannot acquire a loan that meets the terms of the contract.

In such cases, the attorney has to determine whether the loan commitment of the lender complies with the terms of the contract or not. This also includes ensuring the seller receives proper notice regarding loan approval or if it was not approved.

Whether you want to sell or buy real estate in Illinois, get in touch with the attorneys at Covert Marrero Covert LLP today. We are experienced in guiding clients through the often complex transaction process. Get in touch with us for a consultation in Warrenville, Naperville and Schaumburg, IL today.