Representing Buyers and Sellers in Residential Property Transactions
Attorneys at Shvartsman Law Offices provide legal protection and comprehensive services to people buying or selling a home in the greater Illinois area. From negotiations and inspections to disclosures and closings, we can assist with all aspects of the transaction.
We represent any party in residential real estate sales or purchase, including single-family homes, town homes, condominium units, undeveloped lots, foreclosures and short sales. We can handle your contracts and closing with or without the involvement of a realtor. We also provide full turnkey operations in For Sale By Owner (FSBO) transactions.
Our comprehensive representation can include:
· Negotiating, drafting and reviewing sales contracts
· Reviewing inspection reports
· Reviewing seller disclosures
· Ordering title insurance
· Title examination
· Examining the deed and conveyancing
· Analyzing the settlement statement
· Attending your home closing
With our experience and extensive knowledge of Illinois real estate laws, Shvartsman Law Offices can address barriers to a smooth transaction and protect clients from later liability. We perform the thorough and essential review of any real estate contracts, clauses, and transactional documents. It is critically important that the mortgage contingency be properly drafted, in the event financing falls through. Home inspection contingencies regarding radon gas or defects are closely examined as well. Recent changes in the law put more burden on sellers to disclose any latent defects (water intrusion, electrical, plumbing, roof or structural problems). Without the required disclosure, you will face certain litigation. If a disclosure is provided, but a defect is not reported to the buyer, you can be sued for fraud.
LOAN MODIFICATION:
Our law firm was designed specifically to address the legal needs of homeowners that are suffering as a result of the mortgage and housing crisis.
We believe the advantages of working with a law firm comes from the “whole picture legal perspective”.
Many homeowners have collateral issues that they may be unaware of, such as bankruptcy and deficiency judgments. Lenders also often require homeowners to sign a release of any and all legal claims based on the origination and servicing of the loan as a condition of the loan modification. It makes sense to have your mortgage reviewed to make sure there are not relevant claims being waived. For this reason, we perform a mortgage audit on the file at the beginning of every loan modification.
Another point for having a law firm involved is the fact that a lawyer may have contacts within the legal department that provide a more expedient process. Not always, but its at least another avenue to pursue...
A loan modification is a permanent change to a loan contract agreed to by both the lender and the borrower. The lender modifies an existing loan in an effort to help the homeowner in a time of documentable hardship. The ultimate goal is to make the loan affordable for the long term. Usually loan modifications come in the form of a rate reductions and fixing the interest rate for a certain period of time. Until recently, loan modifications were only given to borrowers when they were behind on payments had documentable hardships such as loss of employment, serious illness or death in the family.
Times have changed and now borrowers are able to get loan modifications from lenders because rate adjustments have made the loans unaffordable. Starting the loan modification process earlier rather than later helps borrowers obtain the most favorable terms.
If you can afford your home but you just can’t afford the terms of your mortgage then a loan modification may very well be perfect for you. An important question addressed in all loan modification submissions is the existence of a documentable hardship. Even if the hardship is temporary, the most important aspect of the hardship is that it must be provable.
These are actual examples of hardships that get modifications approved:
1. Illness of the Borrower
2. Illness of a Borrowers Family Member
3. Curtailment of Income
4. Loss of Job
5. Abandonment of Property
6. Property Problem
7. Inability to Sell the Property
8. Inability to Rent the Property
9. Mortgage Servicing Problems
10. Transfer of Ownership Delays
11. Reduced Income
12. Failed Business
13. Job Relocation
14. Death of the Borrower
15. Death of Spouse or Co-Borrower
16. Death in the Family
17. Incarceration
18. Divorce
19. Marital Separation
20. Military Duty
21. Medical Bills
22. Damage to Property (natural disaster or unnatural)
Obama's Loan Modification Program:
So just who will qualify for President Obama's loan modification program? The Affordability and Stability Plan will allocate $75 billion dollars to help borrowers stay in their homes - but it will not help everyone. Who will qualify for help and which lenders are participating? Here is some helpful information if you are interested in applying for this loan modification plan.
The goal of the new loan modification plan is to help 7-9 million borrowers stay in their homes. However, the program is voluntary and each lender will determine which borrowers will qualify for help. The Federal government will offer incentives to lenders who participate, but the final determination is up to each bank. Homeowners will be asked to gather certain required documents and complete loan modification forms that will be reviewed for eligibility.
Here are some general guidelines for basic eligibility for this program:
1. You must live in the home as your primary residence
2. Not available on second mortgages
3. You must be able to prove your income
4. Your current house payment must equal 31% or more of your gross monthly income
5. You do not have to be delinquent to apply for this loan modification program
How do you apply for the Affordability and Stability Plan to begin the loan modification approval process? Interested homeowners need to begin gathering the required paperwork and completing the required forms. Borrowers must be able to prove that they are facing financial hardship, detail their income and expenses clearly and provide all of the necessary paperwork to be considered as a candidate.
Which banks are participating in this loan modification program? The program is on a voluntary basis, however the Federal government is offering monetary incentives to lenders and servicers who participate, so most banks are projected to offer this plan to their borrowers who qualify.
Contact our office for a free consultation at
This e-mail address is being protected from spambots. You need JavaScript enabled to view it
SHORT SALESIf your home is worth less than the principle balance of your mortgage, don’t worry, a short sale might be the answer to your problems.
In today’s fast moving market, changes occur to the rules and regulations governing short sales and it’s imperative that you find not only a broker that understands these changes, but an attorney that can protect you from damages Realtors simply cannot.
Shvartsman Law Offices understand that no one has perfect foresight into the future and that changes in income and property values can have a dramatic effect on households. An option available to homeowners in distress is the short sale. This allows you to sell your home for less than you owe your lender.
On your own, you may find it very difficult to negotiate an acceptable transaction with your lender. Remember, a short sale MUST be accepted by your current lender or servicer in order to proceed with the sale of your home. Short sales are considered a privilege and not a right. When working with Yelena R. Shvartsman, you will benefit from attorney’s that specialize in short sales, loan modifications and other resolution services. Why would you want to leave the job to anyone else?
Negotiating Deficiency is Paramount When Negotiating a Short Sale:
With a short sale, the lender has three possible ways to handle the deficiency balance, which is the portion of the mortgage debt not covered by the sale of the home. First, the lender can attempt to collect the deficiency balance from the seller after the property has closed. Second, the lender may require the seller to sign an unsecured promissory note for the deficiency balance as a condition of agreeing to the short sale. If the new note is for less than the balance of the original debt, the difference would be considered canceled or forgiven debt.
Third, the lender may agree to cancel the entire deficiency balance. You must negotiate for the release of both the property lien and the underlying personal debt secured by the note. If you fail to do this, the lender may not forgive the personal debt and it will become a collection.
When dealing with your lender, Shvartsman Law attorneys will aggressively pursue a short sale and deficiency negotiations in your favor. Don’t leave the job to an inexperienced amateur. Please call us for a FREE consultation to find out if you are a candidate for a short sale at (847) 714-0210
FORECLOSURESDon't give away your home, or give up your legal defenses. Just Because The Bank Starts A Foreclosure Doesn't Mean You Lose.
By not responding to a Foreclosure Action filed in Circuit Court, you could unknowingly agree to a default judgment containing numerous additional fees that could be included in personal judgments against you. This personal judgment could exceed the current worth of your home at a foreclosure sale.
You are not protecting your legal rights if you do not do anything at all and simply accept a default judgment.
Even if you are behind or in default on your payments, consult an attorney to ensure you are not giving up valuable legal rights, defenses and remedies.
Have an attorney review your foreclosure documents.
FORECLOSURE TIMELINE:The Illinois foreclosure timeline is typically anywhere between 210 and 270 days. A mortgage is a written agreement between a mortgage company and a home buyer. The mortgage makes your house collateral for your home loan. Collateral is security for a loan, so if you do not pay the mortgage company, they can try to take your house. This process is called a mortgage foreclosure.
In an "unopposed" mortgage foreclosure the borrower decides that there is no reason to try to stop the foreclosure. So, the borrower agrees to go forward as quickly as possible and not fight the foreclosure. If you are going to try to stop the foreclosure your process and timeline will be different. This will give you an idea of how long the foreclosure will take and when you’ll have to actually move out. This timeline is only a general guideline for an unopposed housing foreclosure case. The time frame for your case may be different.
Third Missed Payment Usually after the third missed mortgage payment, the loan is sent to the lender's attorney for foreclosure. A foreclosure action is a lawsuit filed to end your mortgage and take away your house. After the lender's attorney gets the information about your loan, he or she orders a title report. A title report is a document that states who owns, or has "title," to the property. This report also shows if you have any unpaid deeds of trust or mortgages on the property. Finally, the title report shows if you have any other limits on how your property can be used such as liens (the right to force the sale of your property to pay a debt) or covenants (an agreement about the use of your property).
30 Days Later The lender's attorney reviews the title report and writes the Foreclosure Complaint (a court document that says you have not paid your mortgage for a certain amount of time and the property is now being offered for foreclosure). The attorney also writes up other papers such as a Summons (a court order that you appear in court at a certain day and time). The lender’s attorney reviews the title report to find if you have any other mortgages on your property or if a mechanic's lien has been filed. A mechanic's lien is a claim against your property usually filed by a workman because you did not pay him for work done on your home.
7 Days Later The Foreclosure Complaint is filed in court and the summons is ready for service. Service is when legal papers are given to the opposite party.
Within 60 Days The Foreclosure Complaint is served, or given, to all parties by the Sheriff or a special process server. If a party cannot be reached in person, they can be served by putting a notice in the newspaper.
14 Days Later The lender's attorney reviews the court file to make sure that all parties have been served. Then the attorney sends a notice of motion (asking for a Foreclosure Judgment to be entered). The notice of motion will tell you when the court date is. You should go to court on that date.
You have 90 days after receiving the notice of motion to reinstate your mortgage. You reinstate your mortgage by paying all the money you owe on the mortgage and all costs and fees. If you do this, you cannot reinstate your mortgage again for 5 years. If you do not defend foreclosure at this stage then the court may enter a judgment against you. But it is not likely that this will happen at the first court date. 21 to 60 Days Later
Once a Judgment of Foreclosure (saying that you no longer own the property or have any interest in the property) is entered your redemption period (when you can try to keep your house by paying off the overdue money within a certain amount of time) begins. Your redemption period ends: · 7 months after the date of service of the foreclosure complaint if you are living in the home · 6 months after the date of service if you are not living in the home, or · 3 months after the judgment is entered, whichever is later.
In order to redeem your mortgage, you must pay the amount of the judgment of foreclosure, which includes all money owed under the mortgage, all court costs, attorney fees and taxes. Within 7 Days after the Redemption Period Ends The foreclosure sale (of your property) takes place. The mortgage company must do certain things before the foreclosure sale can take place. A notice of sale must be published at least 3 weeks in a row, once per week. The notice must be published in a newspaper "of general circulation," in the real estate section. It will usually be posted in a local paper. The notice may be published during the redemption period. The mortgage company does not have to mail you a notice of the sale.
21 to 30 Days Later The mortgage company will bring a motion in court to ask for confirmation of the foreclosure sale. A court will usually confirm a foreclosure sale unless you can prove one of the following: · Notice was not given in the right way · The terms of sale were unreasonable · The sale was conducted fraudulently (in a dishonest way) · Justice was not done You can go the sale if you want to.
If the sale price is less than the amount of money that you needed to redeem the property and the mortgage company purchased your property, you have a special right to redeem. This special right to redeem ends 30 days after the sale is confirmed. In order to redeem, you must pay the sale price, any additional costs and expenses approved by the court and any interest.
When the court confirms the sale they will give possession of the property to the buyer. This could be the mortgage company or a third-party buyer. The court will usually give you 30 days from the date the order is entered to leave the property.
30 Days Later You no longer have the right to stay in your house and the mortgage company can ask the court to have the sheriff remove you from the property if you do not do so by yourself.
After You Have Left the Property The foreclosure deed, which is a written document that says your property has been foreclosed, is recorded so that it is public record. .
What a successful defense can do is buy you precious time to: - Negotiate a work-out with the bank
- Sell your home for a fair price
- Refinance your home at a fair rate
- Stay in your home without making payments
- Continue to collect rent on your property
- Apply for a Court Ordered repayment plan
- File a Chapter 13 or 7 bankruptcy
If you fear losing your home to foreclosure contact a consumer protection attorney at Shvartsman Law online or by phone at 847-714-0210
|
