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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.

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.

How to Prevent Legal Issues when Buying or Selling Real Estate

The real estate market in Illinois is competitive, which means there is a lot that goes into each real estate transaction. Whether you are a first time buyer, or you have previous experience of buying or selling a property, you will need an experienced real estate attorney to help you navigate the complex world of real estate.

One of the biggest concerns for people is whether they will be approved for financial assistance from a bank or a financial institution. Closing a deal on a property is a big achievement. It’s essential you are prepared for the process to begin and end smoothly.

While selling a residential or commercial property, if the sale is to go through, most people will expect the buyer to meet a set of contingencies. Similarly, the buyer also will have some terms and conditions for the seller.

It’s rare a real estate deal is finalized without an experienced lawyer present as an attorney will consider every aspect of the transaction before any agreement is signed between the parties. Once these terms, conditions and contingencies set by both parties are successfully fulfilled, it’s highly unlikely any party will face any legal issues.

Asking questions about the seller or buyer is the first step towards finding the right property and to preventing any legal issues from occurring. Collect as much information as possible to get an idea of the real estate market prices. The following types of information can help you find the right property:

What type of property are you looking for?

Before you decide to buy a house, it’s essential to look for a property you can afford. An experienced attorney with years of expertise in real estate can help you determine your finances and other legal matters.

Things to Consider before Selling a Property

If you are selling your property, the first thing you need to do is talk to a real estate agent and list your property. Discuss the duration of the listing and the price with your realtor in presence of your real estate attorney. List all the items that are a part of the property on sale. It is mandatory for the seller to provide the buyer with a Disclosure Form, under the 765 ILCS 77/) Residential Real Property Disclosure Act.

If you need a real estate attorney for any real estate transaction, feel free to get in touch with Covert Marrero Covert LLP. Give us a call at (630) 717-2783 if you have any other queries.