Posted by Bradford Miller Law, P.C.
Real Estate Law | Landlord Tenant Law | Estate Planning
321 N. Clark Street, Suite 500
Chicago, IL 60654
312-238-9298
5 Reasons to Buy a Home in 2011
Michele Lerner, author of Homebuying: Tough Times, First Time, Any Time, offers reasons why real estate is likely to improve in 2011. Here are five reasons she thinks consumers should consider a home purchase next year:
▪ Mortgage rates will stay low. Even with rates climbing — maybe to as high as 6 percent by 2012 — they are still well below where they have been historically.
▪ Tax cuts could help. Extending the tax cuts could encourage a more rapid recovery for the economy.
▪ Americans want to be home owners. A recent Fannie Mae survey showed that Americans still believe a home is a safe and desirable investment.
▪ Builders are about to begin building. Home builders have been sitting on the sidelines. This year, they think pent-up demand will create an appetite for new homes.
▪ Homes are shrinking. Homes are getting smaller, which has made them more affordable.
Source: Investopedia, Michele Lerner (12/24/2010)
Thursday, December 30, 2010
Saturday, December 11, 2010
No foreclosures over the holidays
Posted by Bradford Miller Law
No Foreclosures Over the Holidays
Fannie Mae and Freddie Mac are freezing all foreclosure evictions on the mortgage loans they own or back from Dec. 20 through Jan. 3.
"If the property is occupied, our foreclosure attorneys will suspend the eviction to provide a greater measure of certainty to families during the holidays," says Anthony Renzi, executive vice president of single family portfolio management at Freddie Mac.
Most of the large banks, including Bank of America, J.P. Morgan Chase, and Wells Fargo, already observe a moratorium through the New Year, unless the foreclosure involves an investor who chooses not to observe the holiday policy.
Source: CNNMoney, Les Christie (12/03/2010)
Bradford Miller Law, P.C.
321 N. Clark, Suite 500
Chicago, IL 60654
Experienced in real estate law, landlord-tenant law, and estate planning
Call us at 312-238-9298 for a free consultation
No Foreclosures Over the Holidays
Fannie Mae and Freddie Mac are freezing all foreclosure evictions on the mortgage loans they own or back from Dec. 20 through Jan. 3.
"If the property is occupied, our foreclosure attorneys will suspend the eviction to provide a greater measure of certainty to families during the holidays," says Anthony Renzi, executive vice president of single family portfolio management at Freddie Mac.
Most of the large banks, including Bank of America, J.P. Morgan Chase, and Wells Fargo, already observe a moratorium through the New Year, unless the foreclosure involves an investor who chooses not to observe the holiday policy.
Source: CNNMoney, Les Christie (12/03/2010)
Bradford Miller Law, P.C.
321 N. Clark, Suite 500
Chicago, IL 60654
Experienced in real estate law, landlord-tenant law, and estate planning
Call us at 312-238-9298 for a free consultation
Friday, October 29, 2010
Wells Fargo Says It Will Refile 55,000 Cases
Posted by Bradford Miller Law, P.C.
Wells Fargo said Wednesday that it had made paperwork mistakes and it plans to refile foreclosure documents in 55,000 cases by mid-November, but the company said the mistakes were technical and it doesn’t plan to halt foreclosures.
Unlike other major lenders, Wells Fargo had previously refused to suspend foreclosures. It continued to maintain that the errors were inconsequential. "We don't believe that there are instances in which the foreclosures would not have occurred otherwise," said Teri Schrettenbrunner, a Wells Fargo spokeswoman.
In depositions, two Wells Fargo employees have said they signed large numbers of documents daily without verifying their accuracy.
Source; The Associated Press, Alan Zibel (10/27/2010)
Bradford Miller Law, P.C. is a law firm based in Chicago, IL. Bradford Miller Law, P.C. regularly handles matters in the areas of Real Estate, Landlord/Tenant law, and Estate Planning. For a free consultation, call the office at 312-238-9298.
Wells Fargo said Wednesday that it had made paperwork mistakes and it plans to refile foreclosure documents in 55,000 cases by mid-November, but the company said the mistakes were technical and it doesn’t plan to halt foreclosures.
Unlike other major lenders, Wells Fargo had previously refused to suspend foreclosures. It continued to maintain that the errors were inconsequential. "We don't believe that there are instances in which the foreclosures would not have occurred otherwise," said Teri Schrettenbrunner, a Wells Fargo spokeswoman.
In depositions, two Wells Fargo employees have said they signed large numbers of documents daily without verifying their accuracy.
Source; The Associated Press, Alan Zibel (10/27/2010)
Bradford Miller Law, P.C. is a law firm based in Chicago, IL. Bradford Miller Law, P.C. regularly handles matters in the areas of Real Estate, Landlord/Tenant law, and Estate Planning. For a free consultation, call the office at 312-238-9298.
Monday, August 16, 2010
Closing costs on the rise
Posted by Bradford Miller Law, P.C.
Experienced in real estate law, landlord tenant law and estate planning
Located in Chicago, IL
Mortgage closing costs jump 40% in Illinois
From: http://chicagobreakingbusiness.com/2010/08/mortgage-closing-costs-jump-40-in-illinois.html
Average mortgage closing costs have jumped 40 percent in Illinois this year, according to an online survey by personal finance company Bankrate Inc. The origination and third-party fees on a $200,000 mortgage added up to $3,505 in the the 2010 survey, up from $2,486 a year ago.
Illinois was not alone in the dramatic rise. Nationally average closing costs increased 36 percent to $3,741. Bankrate said one of the reasons for the increase has to do with new regulations implemented in January. Lenders are now required to provide an estimate of title and closing fees within 10 percent of what the final cost will bd, or they’ll risk penalties. The regulations require more labor in getting a loan together.
Even with the increase, Illinois ranked 31st out of 50 states surveyed (plus Washington, D.C.) The most expensive state was New York with an average fee of $5,623. Last year, Illinois ranked 43rd.
Bankrate’s survey counts origination fees charged by the lender, as well as fees charged by third parties. The survey excludes property taxes, recording fees, homeowners insurance and prepaid items such as a partial month’s mortgage interest. It doesn’t include any discount points.
Comment: Illinois is still ranked as one of the lowest states for closing costs. I believe one of the main reasons behind that is the involvement of attorneys. A good attorney will look over all of the costs to make sure there are no mistakes and no frivilous fees. Buyers and Sellers need to hire a good attorney to look out for their interests.
Experienced in real estate law, landlord tenant law and estate planning
Located in Chicago, IL
Mortgage closing costs jump 40% in Illinois
From: http://chicagobreakingbusiness.com/2010/08/mortgage-closing-costs-jump-40-in-illinois.html
Average mortgage closing costs have jumped 40 percent in Illinois this year, according to an online survey by personal finance company Bankrate Inc. The origination and third-party fees on a $200,000 mortgage added up to $3,505 in the the 2010 survey, up from $2,486 a year ago.
Illinois was not alone in the dramatic rise. Nationally average closing costs increased 36 percent to $3,741. Bankrate said one of the reasons for the increase has to do with new regulations implemented in January. Lenders are now required to provide an estimate of title and closing fees within 10 percent of what the final cost will bd, or they’ll risk penalties. The regulations require more labor in getting a loan together.
Even with the increase, Illinois ranked 31st out of 50 states surveyed (plus Washington, D.C.) The most expensive state was New York with an average fee of $5,623. Last year, Illinois ranked 43rd.
Bankrate’s survey counts origination fees charged by the lender, as well as fees charged by third parties. The survey excludes property taxes, recording fees, homeowners insurance and prepaid items such as a partial month’s mortgage interest. It doesn’t include any discount points.
Comment: Illinois is still ranked as one of the lowest states for closing costs. I believe one of the main reasons behind that is the involvement of attorneys. A good attorney will look over all of the costs to make sure there are no mistakes and no frivilous fees. Buyers and Sellers need to hire a good attorney to look out for their interests.
Thursday, August 12, 2010
Recent legislation relating to real estate
Posted by Bradford Miller Law, P.C.
Experienced in real estate law, located in Chicago, IL
The Save Our Neighborhoods Act of 2010 (Senate Bill 3739) creates a foreclosure prevention program and an abandoned housing funding program within the Illinois Housing Development Authority (IHDA). The law also extends the deadline to July 1, 2013 for an existing program that pauses the foreclosure process so individuals can receive counseling. Effective Oct. 1, 2010.
The Common Interest Community Association Act (Senate Bill 3180) regulates non-condominium homeowner associations and includes an initiative allowing persons who enter the military service during the term of their residential lease, or soldiers who are deployed or transferred, to break their lease without penalty (similar to the federal Service Members Civil Relief Act). Effective July 29, 2010.
House Bill 6038 extends the Illinois Affordable Housing Tax Credit through 2016. The program has been used successfully by IHDA, local governments and non-profit housing groups. Effective July 26, 2010.
Bradford Miller Law, P.C.
321 N. Clark, Suite 500
Chicago, IL 60654
Main: 312-238-9298
Fax: 312-379-3163
Web: http://www.bradfordmillerlaw.com/
Experienced in real estate law, located in Chicago, IL
The Save Our Neighborhoods Act of 2010 (Senate Bill 3739) creates a foreclosure prevention program and an abandoned housing funding program within the Illinois Housing Development Authority (IHDA). The law also extends the deadline to July 1, 2013 for an existing program that pauses the foreclosure process so individuals can receive counseling. Effective Oct. 1, 2010.
The Common Interest Community Association Act (Senate Bill 3180) regulates non-condominium homeowner associations and includes an initiative allowing persons who enter the military service during the term of their residential lease, or soldiers who are deployed or transferred, to break their lease without penalty (similar to the federal Service Members Civil Relief Act). Effective July 29, 2010.
House Bill 6038 extends the Illinois Affordable Housing Tax Credit through 2016. The program has been used successfully by IHDA, local governments and non-profit housing groups. Effective July 26, 2010.
Bradford Miller Law, P.C.
321 N. Clark, Suite 500
Chicago, IL 60654
Main: 312-238-9298
Fax: 312-379-3163
Web: http://www.bradfordmillerlaw.com/
Thursday, August 5, 2010
Transfer fee covenants now banned in Illinois
Posted by Bradford Miller Law, P.C.
Gov. Quinn has signed into law Public Act 96-1345, which creates the Transfer Fee Covenant Act. The law, which does not go into effect until Jan. 1, 2011 declares private transfer fee covenants, which would require future buyers or sellers to pay a private transfer fee to whoever is designated in the covenant on all future transfers, to be invalid and against public policy. These are also known as "home resale fees."
Bradford Miller Law, P.C. is a law firm based in Chicago, IL. Bradford Miller Law, P.C. regularly handles matters in the areas of Real Estate, Landlord/Tenant law, and Estate Planning. For a free consultation, call the office at 312-238-9298.
Gov. Quinn has signed into law Public Act 96-1345, which creates the Transfer Fee Covenant Act. The law, which does not go into effect until Jan. 1, 2011 declares private transfer fee covenants, which would require future buyers or sellers to pay a private transfer fee to whoever is designated in the covenant on all future transfers, to be invalid and against public policy. These are also known as "home resale fees."
Bradford Miller Law, P.C. is a law firm based in Chicago, IL. Bradford Miller Law, P.C. regularly handles matters in the areas of Real Estate, Landlord/Tenant law, and Estate Planning. For a free consultation, call the office at 312-238-9298.
Monday, July 19, 2010
1.65 Million Properties Receive Foreclosure Filings in First Half of 2010
Posted by Bradford Miller Law, PC. Experienced in Real Estate law, landlord tenant law and estate planning. Article courtesy of Realty Trac.
IRVINE, Calif. – July 15, 2010 – RealtyTrac® (http://www.realtytrac.com), the leading online marketplace for foreclosure properties, today released its Midyear 2010 U.S. Foreclosure Market Report, which shows a total of 1,961,894 foreclosure filings — default notices, auction sale notices and bank repossessions — were reported on 1,654,634 U.S. properties in the first six months of 2010, a 5 percent decrease in total properties from the previous six months but an 8 percent increase in total properties from the first six months of 2009. The report also shows that 1.28 percent of all U.S. housing units (one in 78) received at least one foreclosure filing in the first half of the year.
Foreclosure filings were reported on 313,841 U.S. properties in June, a decrease of nearly 3 percent from the previous month and a decrease of nearly 7 percent from June 2009. June was the sixteenth straight month where the total number of properties with foreclosure filings exceeded 300,000.
Foreclosure filings were reported on 895,521 U.S. properties during the second quarter, a decrease of nearly 4 percent from the previous quarter and an increase of less than 1 percent from the second quarter of 2009. Default and auction notices were down on a quarter-over-quarter and year-over-year basis in the second quarter, but bank repossessions (REOs) increased 5 percent from the previous quarter and 38 percent from Q2 2009 to 269,962 — a new quarterly high for the report.
“The second quarter was a tale of two trends,” said James J. Saccacio, chief executive officer of RealtyTrac. “The pace of properties entering foreclosure slowed as lenders pre-empted or delayed foreclosure proceedings on delinquent properties with more aggressive short sale and loan modification initiatives. Meanwhile the pace of properties completing the foreclosure process through bank repossession quickened as lenders cleared out a backlog of distressed inventory delayed by foreclosure prevention efforts in 2009.
“The midyear numbers put us on pace to exceed 3 million properties with foreclosure filings by the end of the year, and more than 1 million bank repossessions,” Saccacio continued. “The roller coaster pattern of foreclosure activity over the past 12 months demonstrates that while the foreclosure problem is being managed on the surface, a massive number of distressed properties and underwater loans continues to sit just below the surface, threatening the fragile stability of the housing market.”
Nevada, Arizona, Florida post top state foreclosure rates
Nearly 6 percent of all Nevada housing units (one in 17) received at least one foreclosure filing in the first half of 2010, giving Nevada the nation’s highest foreclosure rate during the six-month period despite decreasing foreclosure activity. A total of 64,429 Nevada properties received a foreclosure filing from January to June, a decrease of 13 percent from the previous six months and a decrease of 6 percent from the first six months of 2009.
Arizona registered the nation’s second highest state foreclosure rate in the first half of 2010, with 3.36 percent of its housing units (one in 30) receiving a foreclosure filing, and Florida registered the nation’s third highest state foreclosure rate, with 3.15 percent of its housing units (one in 32) receiving a foreclosure filing during the six months.
Other states with foreclosure rates ranking among the nation’s 10 highest were California (2.54 percent), Utah (1.91 percent), Georgia (1.79 percent), Michigan (1.73 percent), Idaho (1.68 percent), Illinois (1.61 percent), and Colorado (1.40 percent).
California, Florida, Arizona post highest foreclosure totals
A total of 340,740 California properties received a foreclosure filing in the first half of 2010, the nation’s highest total but down 15 percent from the previous six months and down nearly 13 percent from the first six months of 2009.
With 277,073 properties receiving a foreclosure filing in the first six months of 2010, Florida documented the second highest state total. First-half foreclosure activity in Florida decreased nearly 9 percent from the previous six months but increased 3 percent from the first half of 2009.
Arizona’s 91,484 properties receiving a foreclosure filing in the first six months of 2010 was the third highest state total even though the state’s foreclosure activity decreased nearly 2 percent from the previous six months. Arizona foreclosure activity in the first half of 2010 was still up nearly 2 percent from the first half of 2009.
Other states with first-half totals among the 10 highest in the country were Illinois (85,223), Michigan (78,509), Georgia (71,949), Texas (64,883), Nevada (64,429), Ohio (59,927), and New Jersey (36,542).
IRVINE, Calif. – July 15, 2010 – RealtyTrac® (http://www.realtytrac.com), the leading online marketplace for foreclosure properties, today released its Midyear 2010 U.S. Foreclosure Market Report, which shows a total of 1,961,894 foreclosure filings — default notices, auction sale notices and bank repossessions — were reported on 1,654,634 U.S. properties in the first six months of 2010, a 5 percent decrease in total properties from the previous six months but an 8 percent increase in total properties from the first six months of 2009. The report also shows that 1.28 percent of all U.S. housing units (one in 78) received at least one foreclosure filing in the first half of the year.
Foreclosure filings were reported on 313,841 U.S. properties in June, a decrease of nearly 3 percent from the previous month and a decrease of nearly 7 percent from June 2009. June was the sixteenth straight month where the total number of properties with foreclosure filings exceeded 300,000.
Foreclosure filings were reported on 895,521 U.S. properties during the second quarter, a decrease of nearly 4 percent from the previous quarter and an increase of less than 1 percent from the second quarter of 2009. Default and auction notices were down on a quarter-over-quarter and year-over-year basis in the second quarter, but bank repossessions (REOs) increased 5 percent from the previous quarter and 38 percent from Q2 2009 to 269,962 — a new quarterly high for the report.
“The second quarter was a tale of two trends,” said James J. Saccacio, chief executive officer of RealtyTrac. “The pace of properties entering foreclosure slowed as lenders pre-empted or delayed foreclosure proceedings on delinquent properties with more aggressive short sale and loan modification initiatives. Meanwhile the pace of properties completing the foreclosure process through bank repossession quickened as lenders cleared out a backlog of distressed inventory delayed by foreclosure prevention efforts in 2009.
“The midyear numbers put us on pace to exceed 3 million properties with foreclosure filings by the end of the year, and more than 1 million bank repossessions,” Saccacio continued. “The roller coaster pattern of foreclosure activity over the past 12 months demonstrates that while the foreclosure problem is being managed on the surface, a massive number of distressed properties and underwater loans continues to sit just below the surface, threatening the fragile stability of the housing market.”
Nevada, Arizona, Florida post top state foreclosure rates
Nearly 6 percent of all Nevada housing units (one in 17) received at least one foreclosure filing in the first half of 2010, giving Nevada the nation’s highest foreclosure rate during the six-month period despite decreasing foreclosure activity. A total of 64,429 Nevada properties received a foreclosure filing from January to June, a decrease of 13 percent from the previous six months and a decrease of 6 percent from the first six months of 2009.
Arizona registered the nation’s second highest state foreclosure rate in the first half of 2010, with 3.36 percent of its housing units (one in 30) receiving a foreclosure filing, and Florida registered the nation’s third highest state foreclosure rate, with 3.15 percent of its housing units (one in 32) receiving a foreclosure filing during the six months.
Other states with foreclosure rates ranking among the nation’s 10 highest were California (2.54 percent), Utah (1.91 percent), Georgia (1.79 percent), Michigan (1.73 percent), Idaho (1.68 percent), Illinois (1.61 percent), and Colorado (1.40 percent).
California, Florida, Arizona post highest foreclosure totals
A total of 340,740 California properties received a foreclosure filing in the first half of 2010, the nation’s highest total but down 15 percent from the previous six months and down nearly 13 percent from the first six months of 2009.
With 277,073 properties receiving a foreclosure filing in the first six months of 2010, Florida documented the second highest state total. First-half foreclosure activity in Florida decreased nearly 9 percent from the previous six months but increased 3 percent from the first half of 2009.
Arizona’s 91,484 properties receiving a foreclosure filing in the first six months of 2010 was the third highest state total even though the state’s foreclosure activity decreased nearly 2 percent from the previous six months. Arizona foreclosure activity in the first half of 2010 was still up nearly 2 percent from the first half of 2009.
Other states with first-half totals among the 10 highest in the country were Illinois (85,223), Michigan (78,509), Georgia (71,949), Texas (64,883), Nevada (64,429), Ohio (59,927), and New Jersey (36,542).
Sunday, July 11, 2010
Pending home sales down in May 2010
Posted by Bradford Miller Law PC, experienced in real estate law, landlord tenant law, and estate planning. Visit the firm online at http://www.bradfordmillerlaw.com/.
Its tough out there for Sellers. The National Association of Realtors (NAR) reported that the Pending Home Sales Index, dropped 30.0 percent to 77.6 based on contracts signed in May from a reading of 110.9 in April, and is 15.9 percent lower than the May 2009 level of 92.3.
NAR chief economist Lawrence Yun says the decline was not unexpected. “Consumers are rational and they rushed to meet the tax credit eligibility deadline in April. The sharp decline in contract signings in May is a natural result with similar low levels of sales activity anticipated in June.”
In this kind of market, Seller's need all the help they can get. One thing they can control is who they hire as their Attorney when they do find a Buyer. Give us a call here at Bradford Miller Law PC. Bradford Miller is experienced and you will find our rates to be extremely reasonable.
Its tough out there for Sellers. The National Association of Realtors (NAR) reported that the Pending Home Sales Index, dropped 30.0 percent to 77.6 based on contracts signed in May from a reading of 110.9 in April, and is 15.9 percent lower than the May 2009 level of 92.3.
NAR chief economist Lawrence Yun says the decline was not unexpected. “Consumers are rational and they rushed to meet the tax credit eligibility deadline in April. The sharp decline in contract signings in May is a natural result with similar low levels of sales activity anticipated in June.”
In this kind of market, Seller's need all the help they can get. One thing they can control is who they hire as their Attorney when they do find a Buyer. Give us a call here at Bradford Miller Law PC. Bradford Miller is experienced and you will find our rates to be extremely reasonable.
Thursday, July 1, 2010
Tax credit extended
Congress has passed a bill extending the closing deadline from June 30th, 2010 to September 30th, 2010 for the homebuyers tax credit. The President has not yet signed the bill but is widely expected to do so.
This is especially good for many Buyers who are waiting for short sales to close.
Bradford Miller Law PC
321 N. Clark, Suite 500
Chicago, IL 60654
Main: 312-238-9298
Bradford Miller is a Chicago Attorney practicing in Real Estate Law, Estate Planning, and Landlord Tenant Law. Visit Bradford Miller Law, PC online at http://www.bradfordmillerlaw.com/.
This is especially good for many Buyers who are waiting for short sales to close.
Bradford Miller Law PC
321 N. Clark, Suite 500
Chicago, IL 60654
Main: 312-238-9298
Bradford Miller is a Chicago Attorney practicing in Real Estate Law, Estate Planning, and Landlord Tenant Law. Visit Bradford Miller Law, PC online at http://www.bradfordmillerlaw.com/.
Wednesday, June 30, 2010
Update on homebuyer tax credit
The House of Representatives passed HR 5623, which would extend the deadline for closing tax credit eligible transactions from June 30th, 2010 to September 30th, 2010. The bill now moves to the Senate and if passed will be presented to the President for signature.
Bradford Miller Law
321 N. Clark, Suite 500
Chicago, IL 60654
Main: 312-238-9298
Bradford Miller is a Chicago Attorney practicing in Real Estate Law, Estate Planning, Landlord Tenant Law
Bradford Miller Law
321 N. Clark, Suite 500
Chicago, IL 60654
Main: 312-238-9298
Bradford Miller is a Chicago Attorney practicing in Real Estate Law, Estate Planning, Landlord Tenant Law
More help for struggling homeowners
Recently, Fannie Mae issued Servicing Guide Announcement SVC-2010-07, introducing Fannie Mae's Home Affordable Foreclosure Alternatives (HAFA) Program. It is designed to mitigate the impact of foreclosures on borrowers who are eligible for a loan modification under the Home Affordable Modification Program (HAMP) but ultimately are unsuccessful in obtaining one. For more information on the program, visit https://www.efanniemae.com/sf/servicing/hafa/index.jsp
Bradford Miller Law
321 N. Clark, Suite 500
Chicago, IL 60654
Bradford Miller is a Chicago Attorney practicing in Real Estate Law, Estate Planning, Landlord Tenant Law
Bradford Miller Law
321 N. Clark, Suite 500
Chicago, IL 60654
Bradford Miller is a Chicago Attorney practicing in Real Estate Law, Estate Planning, Landlord Tenant Law
Sunday, June 13, 2010
What should the Seller expect?
Although every transaction can be different, this is a general timeline from the Seller's point of view.
1. There is an offer for the property. Your Realtor receives earnest money from the Buyer.
2. When you receive an offer (or even before) you should immediately call an Attorney and fax or email the contract to their office. It is important to get the Attorney involved right away because there are deadlines that begin to run.
3. The Attorney will then begin their work on the transaction which will include reviewing the terms of the contract, ordering and reviewing the title policy, and drafting the paperwork necessary for closing.
4. Inspection deadline. In a typical contract, the Buyer has the right to have the property professionally inspected. If any problems are found, the Buyer may ask for them to be repaired or they may ask for a monetary credit. Or they could choose to cancel the contract and have the earnest money returned to them.
5. Mortgage commitment deadline. This is often the deadline that matters the most to all of the parties. For a Buyer that needs to take out a mortgage, this is the deadline where the lender either "commits" to lending money for the property or decides they cannot lend money for this property. Often this deadline needs to be extended because the lenders have become more cautious then before and therefore need more time.
6. At some point, usually after the Attorneys have come to an agreement on all terms, the Buyer will give an additional amount of earnest money. This money typically goes to your Realtor's office who then puts it into an escrow account.
7. The final walk-through takes place, usually the day before the closing.
8. The actual closing takes place which is where everyone signs the paperwork and keys are exchanged.
Overall, the above timeline typically takes around 60 days to complete but every transaction is different and sometimes deadlines need to be extended for one reason or another.
The law firm of Bradford Miller Law, P.C. is experienced in real estate law. If you are selling your home, contact us right away at 312-238-9298. It is important that you hire an Attorney BEFORE you sign a contract.
Please note this is intended to give general information to the public. Although the information is generally accurate, it cannot be guaranteed and this information should not be construed as legal advice upon which a reader can rely. In all cases, please consult a lawyer before acting. This is intended to be advertising, and not solicitation, or legal advice.
1. There is an offer for the property. Your Realtor receives earnest money from the Buyer.
2. When you receive an offer (or even before) you should immediately call an Attorney and fax or email the contract to their office. It is important to get the Attorney involved right away because there are deadlines that begin to run.
3. The Attorney will then begin their work on the transaction which will include reviewing the terms of the contract, ordering and reviewing the title policy, and drafting the paperwork necessary for closing.
4. Inspection deadline. In a typical contract, the Buyer has the right to have the property professionally inspected. If any problems are found, the Buyer may ask for them to be repaired or they may ask for a monetary credit. Or they could choose to cancel the contract and have the earnest money returned to them.
5. Mortgage commitment deadline. This is often the deadline that matters the most to all of the parties. For a Buyer that needs to take out a mortgage, this is the deadline where the lender either "commits" to lending money for the property or decides they cannot lend money for this property. Often this deadline needs to be extended because the lenders have become more cautious then before and therefore need more time.
6. At some point, usually after the Attorneys have come to an agreement on all terms, the Buyer will give an additional amount of earnest money. This money typically goes to your Realtor's office who then puts it into an escrow account.
7. The final walk-through takes place, usually the day before the closing.
8. The actual closing takes place which is where everyone signs the paperwork and keys are exchanged.
Overall, the above timeline typically takes around 60 days to complete but every transaction is different and sometimes deadlines need to be extended for one reason or another.
The law firm of Bradford Miller Law, P.C. is experienced in real estate law. If you are selling your home, contact us right away at 312-238-9298. It is important that you hire an Attorney BEFORE you sign a contract.
Please note this is intended to give general information to the public. Although the information is generally accurate, it cannot be guaranteed and this information should not be construed as legal advice upon which a reader can rely. In all cases, please consult a lawyer before acting. This is intended to be advertising, and not solicitation, or legal advice.
Sunday, April 25, 2010
Six costly mistakes by homebuyers
According to CNN.com, these are the six of the biggest mistakes made by homebuyers:
1) Not knowing your credit score
2) Buying a car before a house
3) Skimping on home inspections
4) NOT HIRING A LAWYER
5) Signing a contract with no contingencies (hiring a lawyer before you sign the contract will solve this problem)
6) Not budgeting for insurance
See the whole story at http://money.cnn.com/galleries/2010/autos/1004/gallery.Costly_homebuying_mistakes/index.html
Most people know that they need a lawyer to represent them when they are selling their home, but buyers also need representation. The relatively small fee the lawyer charges could save a buyer thousands of dollars and headaches.
If you are trying to buy or sell property, contact our office. Our office phone number is 312-238-9298.
Please note this is intended to give general information to the public. Although the information is generally accurate, it cannot be guaranteed and this information should not be construed as legal advice upon which a reader can rely. In all cases, please consult a lawyer before acting. This is intended to be advertising, and not solicitation, or legal advice.
1) Not knowing your credit score
2) Buying a car before a house
3) Skimping on home inspections
4) NOT HIRING A LAWYER
5) Signing a contract with no contingencies (hiring a lawyer before you sign the contract will solve this problem)
6) Not budgeting for insurance
See the whole story at http://money.cnn.com/galleries/2010/autos/1004/gallery.Costly_homebuying_mistakes/index.html
Most people know that they need a lawyer to represent them when they are selling their home, but buyers also need representation. The relatively small fee the lawyer charges could save a buyer thousands of dollars and headaches.
If you are trying to buy or sell property, contact our office. Our office phone number is 312-238-9298.
Please note this is intended to give general information to the public. Although the information is generally accurate, it cannot be guaranteed and this information should not be construed as legal advice upon which a reader can rely. In all cases, please consult a lawyer before acting. This is intended to be advertising, and not solicitation, or legal advice.
Friday, April 16, 2010
Closing Costs for Sellers
Posted by Bradford Miller Law, P.C. - Experienced in Real Estate and Landlord Tenant Law
What kind of closing costs can I expect when I am selling my home?
First, let me clarify that I consider realtor commissions, taxes, title related fees, etc all to be "closing costs." Others may only call title-related fees "closing costs."
For Sellers, the largest closing cost tends to be the Realtor commission. This commission is typically between 4 and 6% of the sale price. The next largest cost is real estate property taxes. In Cook County, we pay property taxes in arrears - which means that in 2010, we are paying the 2009 property taxes. So when you sell your home, you must give a property tax credit to the Buyer for the time you spent in your home in the current year. This property tax credit can be negotiated and a formula is used to calculate the actual amount. The remaining costs include title related fees, city, county and state taxes.
Overall, Sellers can typically expect to pay around 8% of the sales price in total closing costs. This includes the Realtor commissions, taxes and title related fees. For example, on a $200,000 home, the Seller can expect to pay around $16,000 in total closing costs. Again, each transaction is different, and if no Realtors are involved, the closing costs will be much lower - because there will be no commissions to pay.
If you are trying to sell your home, contact our office immediately so we can begin working on the documents. Our office phone number is 312-238-9298.
Please note this is intended to give general information to the public. Although the information is generally accurate, it cannot be guaranteed and this information should not be construed as legal advice upon which a reader can rely. In all cases, please consult a lawyer before acting. This is intended to be advertising, and not solicitation, or legal advice.
What kind of closing costs can I expect when I am selling my home?
First, let me clarify that I consider realtor commissions, taxes, title related fees, etc all to be "closing costs." Others may only call title-related fees "closing costs."
For Sellers, the largest closing cost tends to be the Realtor commission. This commission is typically between 4 and 6% of the sale price. The next largest cost is real estate property taxes. In Cook County, we pay property taxes in arrears - which means that in 2010, we are paying the 2009 property taxes. So when you sell your home, you must give a property tax credit to the Buyer for the time you spent in your home in the current year. This property tax credit can be negotiated and a formula is used to calculate the actual amount. The remaining costs include title related fees, city, county and state taxes.
Overall, Sellers can typically expect to pay around 8% of the sales price in total closing costs. This includes the Realtor commissions, taxes and title related fees. For example, on a $200,000 home, the Seller can expect to pay around $16,000 in total closing costs. Again, each transaction is different, and if no Realtors are involved, the closing costs will be much lower - because there will be no commissions to pay.
If you are trying to sell your home, contact our office immediately so we can begin working on the documents. Our office phone number is 312-238-9298.
Please note this is intended to give general information to the public. Although the information is generally accurate, it cannot be guaranteed and this information should not be construed as legal advice upon which a reader can rely. In all cases, please consult a lawyer before acting. This is intended to be advertising, and not solicitation, or legal advice.
Sunday, March 21, 2010
10 things to remember about short sales
Posted by Bradford Miller Law, P.C. - Experienced in Real Estate, Landlord Tenant Law, and Estate Planning. Visit us online at http://www.bradfordmillerlaw.com/.
Here are ten important points to remember about short sales:
1) They take time. On average, short sales take between 4 and 6 months to complete from start to finish. But it depends on the lender. I have seen some properties close within 2 months. But again, it all depends on the lender.
2) The seller will need to prove a financial hardship in order for the bank to consider the short sale. If you have a lot of money sitting in the bank and are just looking for the lender to take the loss on the property, a short sale is not for you. Through our office and your real estate agent, we will provide the necessary paperwork for the lender to consider your financial hardship. In my experience, lenders have been very responsive to the financial hardships of Sellers and will likely agree that a short sale is the best option.
3) The Seller can receive no proceeds from the sale. The bank pays all customary closing costs such as agent commissions, taxes, title fees and attorney’s fees.
4) All real estate sales contracts should use the appropriate short sale rider and any agent commissions must be contingent upon lenders acceptance.
5) The seller must still accept an offer however it will be subject to lender acceptance. In other words, the lender must approve the terms of the offer as well as sign off on the seller’s financial hardship circumstances.
6) There is no guarantee the bank will approve the sale.
7) When an offer is presented, the bank will do its own research on the property by ordering a brokers price opinion (“BPO”). This is similar to an appraisal. Therefore, if the offers are lower than what other homes have been selling for, the lender may reject the short sale or counter at a higher price.
8) It is very important that the Seller, listing agent, and our office work together. This will ensure that the process goes as smoothly as possible.
9) Sellers should use a real estate agent and attorney who are experienced with short sales.
10) Sellers should get our office involved immediately. Bradford Miller Law, P.C. has extensive experience with short sales and can help ensure the process goes as quickly and smoothly as possible.
Please note this is intended to give general information to the public. Although the information is generally accurate, it cannot be guaranteed and this information should not be construed as legal advice upon which a reader can rely. In all cases, please consult a lawyer before acting. This is intended to be advertising, and not solicitation, or legal advice.
Here are ten important points to remember about short sales:
1) They take time. On average, short sales take between 4 and 6 months to complete from start to finish. But it depends on the lender. I have seen some properties close within 2 months. But again, it all depends on the lender.
2) The seller will need to prove a financial hardship in order for the bank to consider the short sale. If you have a lot of money sitting in the bank and are just looking for the lender to take the loss on the property, a short sale is not for you. Through our office and your real estate agent, we will provide the necessary paperwork for the lender to consider your financial hardship. In my experience, lenders have been very responsive to the financial hardships of Sellers and will likely agree that a short sale is the best option.
3) The Seller can receive no proceeds from the sale. The bank pays all customary closing costs such as agent commissions, taxes, title fees and attorney’s fees.
4) All real estate sales contracts should use the appropriate short sale rider and any agent commissions must be contingent upon lenders acceptance.
5) The seller must still accept an offer however it will be subject to lender acceptance. In other words, the lender must approve the terms of the offer as well as sign off on the seller’s financial hardship circumstances.
6) There is no guarantee the bank will approve the sale.
7) When an offer is presented, the bank will do its own research on the property by ordering a brokers price opinion (“BPO”). This is similar to an appraisal. Therefore, if the offers are lower than what other homes have been selling for, the lender may reject the short sale or counter at a higher price.
8) It is very important that the Seller, listing agent, and our office work together. This will ensure that the process goes as smoothly as possible.
9) Sellers should use a real estate agent and attorney who are experienced with short sales.
10) Sellers should get our office involved immediately. Bradford Miller Law, P.C. has extensive experience with short sales and can help ensure the process goes as quickly and smoothly as possible.
Please note this is intended to give general information to the public. Although the information is generally accurate, it cannot be guaranteed and this information should not be construed as legal advice upon which a reader can rely. In all cases, please consult a lawyer before acting. This is intended to be advertising, and not solicitation, or legal advice.
Sunday, March 14, 2010
Program Will Pay Homeowners to Sell at a Loss
Posted by Bradford Miller Law, P.C. - Experienced in Real Estate, Landlord Tenant Law, and Estate Planning. Visit us online at http://www.bradfordmillerlaw.com/.
Program Will Pay Homeowners to Sell at a Loss
New York Times, March 7th, 2010
In an effort to end the foreclosure crisis, the Obama administration has been trying to keep defaulting owners in their homes. Now it will take a new approach: paying some of them to leave.
This latest program, which will allow owners to sell for less than they owe and will give them a little cash to speed them on their way, is one of the administration’s most aggressive attempts to grapple with a problem that has defied solutions.
More than five million households are behind on their mortgages and risk foreclosure. The government’s $75 billion mortgage modification plan has helped only a small slice of them. Consumer advocates, economists and even some banking industry representatives say much more needs to be done.
For the administration, there is also the concern that millions of foreclosures could delay or even reverse the economy’s tentative recovery — the last thing it wants in an election year.
Taking effect on April 5, the program could encourage hundreds of thousands of delinquent borrowers who have not been rescued by the loan modification program to shed their houses through a process known as a short sale, in which property is sold for less than the balance of the mortgage. Lenders will be compelled to accept that arrangement, forgiving the difference between the market price of the property and what they are owed.
“We want to streamline and standardize the short sale process to make it much easier on the borrower and much easier on the lender,” said Seth Wheeler, a Treasury senior adviser.
The problem is highlighted by a routine case in Phoenix. Chris Paul, a real estate agent, has a house he is trying to sell on behalf of its owner, who owes $150,000. Mr. Paul has an offer for $48,000, but the bank holding the mortgage says it wants at least $90,000. The frustrated owner is now contemplating foreclosure.
To bring the various parties to the table — the homeowner, the lender that services the loan, the investor that owns the loan, the bank that owns the second mortgage on the property — the government intends to spread its cash around.
Under the new program, the servicing bank, as with all modifications, will get $1,000. Another $1,000 can go toward a second loan, if there is one. And for the first time the government would give money to the distressed homeowners themselves. They will get $1,500 in “relocation assistance.”
Should the incentives prove successful, the short sales program could have multiple benefits. For the investment pools that own many home loans, there is the prospect of getting more money with a sale than with a foreclosure.
For the borrowers, there is the likelihood of suffering less damage to credit ratings. And as part of the transaction, they will get the lender’s assurance that they will not later be sued for an unpaid mortgage balance.
For communities, the plan will mean fewer empty foreclosed houses waiting to be sold by banks. By some estimates, as many as half of all foreclosed properties are ransacked by either the former owners or vandals, which depresses the value of the property further and pulls down the value of neighboring homes.
If short sales are about to have their moment, it has been a long time coming. At the beginning of the foreclosure crisis, lenders shunned short sales. They were not equipped to deal with the labor-intensive process and were suspicious of it.
The lenders’ thinking, said the economist Thomas Lawler, went like this: “I lend someone $200,000 to buy a house. Then he says, ‘Look, I have someone willing to pay $150,000 for it; otherwise I think I’m going to default.’ Do I really believe the borrower can’t pay it back? And is $150,000 a reasonable offer for the property?”
Short sales are “tailor-made for fraud,” said Mr. Lawler, a former executive at the mortgage finance company Fannie Mae.
Last year, short sales started to increase, although they remain relatively uncommon. Fannie Mae said preforeclosure deals on loans in its portfolio more than tripled in 2009, to 36,968. But real estate agents say many lenders still seem to disapprove of short sales.
Under the new federal program, a lender will use real estate agents to determine the value of a home and thus the minimum to accept. This figure will not be shared with the owner, but if an offer comes in that is equal to or higher than this amount, the lender must take it.
Mr. Paul, the Phoenix agent, was skeptical. “In a perfect world, this would work,” he said. “But because estimates of value are inherently subjective, it won’t. The banks don’t want to sell at a discount.”
There are myriad other potential conflicts over short sales that may not be solved by the program, which was announced on Nov. 30 but whose details are still being fine-tuned. Many would-be short sellers have second and even third mortgages on their houses. Banks that own these loans are in a position to block any sale unless they get a piece of the deal.
“You have one loan, it’s no sweat to get a short sale,” said Howard Chase, a Miami Beach agent who says he does around 20 short sales a month. “But the second mortgage often is the obstacle.”
Major lenders seem to be taking a cautious approach to the new initiative. In many cases, big banks do not actually own the mortgages; they simply administer them and collect payments. J. K. Huey, a Wells Fargo vice president, said a short sale, like a loan modification, would have to meet the requirements of the investor who owns the loan.
“This is not an opportunity for the customer to just walk away,” Ms. Huey said. “If someone doesn’t come to us saying, ‘I’ve done everything I can, I used all my savings, I borrowed money and, by the way, I’m losing my job and moving to another city, and have all the documentation,’ we’re not going to do a short sale.”
But even if lenders want to treat short sales as a last resort for desperate borrowers, in reality the standards seem to be looser.
Sree Reddy, a lawyer and commercial real estate investor who lives in Miami Beach, bought a one-bedroom condominium in 2005, spent about $30,000 on improvements and ended up owing $540,000. Three years later, the value had fallen by 40 percent.
Mr. Reddy wanted to get out from under his crushing monthly payments. He lost a lot of money in the crash but was not in default. Nevertheless, his bank let him sell the place for $360,000 last summer.
“A short sale provides peace of mind,” said Mr. Reddy, 32. “If you’re in foreclosure, you don’t know when they’re ultimately going to take the place away from you.”
Mr. Reddy still lives in the apartment complex where he bought that condo, but is now a renter paying about half of his old mortgage payment. Another benefit, he said: “The place I’m in now is nicer and a little bigger.”
Program Will Pay Homeowners to Sell at a Loss
New York Times, March 7th, 2010
In an effort to end the foreclosure crisis, the Obama administration has been trying to keep defaulting owners in their homes. Now it will take a new approach: paying some of them to leave.
This latest program, which will allow owners to sell for less than they owe and will give them a little cash to speed them on their way, is one of the administration’s most aggressive attempts to grapple with a problem that has defied solutions.
More than five million households are behind on their mortgages and risk foreclosure. The government’s $75 billion mortgage modification plan has helped only a small slice of them. Consumer advocates, economists and even some banking industry representatives say much more needs to be done.
For the administration, there is also the concern that millions of foreclosures could delay or even reverse the economy’s tentative recovery — the last thing it wants in an election year.
Taking effect on April 5, the program could encourage hundreds of thousands of delinquent borrowers who have not been rescued by the loan modification program to shed their houses through a process known as a short sale, in which property is sold for less than the balance of the mortgage. Lenders will be compelled to accept that arrangement, forgiving the difference between the market price of the property and what they are owed.
“We want to streamline and standardize the short sale process to make it much easier on the borrower and much easier on the lender,” said Seth Wheeler, a Treasury senior adviser.
The problem is highlighted by a routine case in Phoenix. Chris Paul, a real estate agent, has a house he is trying to sell on behalf of its owner, who owes $150,000. Mr. Paul has an offer for $48,000, but the bank holding the mortgage says it wants at least $90,000. The frustrated owner is now contemplating foreclosure.
To bring the various parties to the table — the homeowner, the lender that services the loan, the investor that owns the loan, the bank that owns the second mortgage on the property — the government intends to spread its cash around.
Under the new program, the servicing bank, as with all modifications, will get $1,000. Another $1,000 can go toward a second loan, if there is one. And for the first time the government would give money to the distressed homeowners themselves. They will get $1,500 in “relocation assistance.”
Should the incentives prove successful, the short sales program could have multiple benefits. For the investment pools that own many home loans, there is the prospect of getting more money with a sale than with a foreclosure.
For the borrowers, there is the likelihood of suffering less damage to credit ratings. And as part of the transaction, they will get the lender’s assurance that they will not later be sued for an unpaid mortgage balance.
For communities, the plan will mean fewer empty foreclosed houses waiting to be sold by banks. By some estimates, as many as half of all foreclosed properties are ransacked by either the former owners or vandals, which depresses the value of the property further and pulls down the value of neighboring homes.
If short sales are about to have their moment, it has been a long time coming. At the beginning of the foreclosure crisis, lenders shunned short sales. They were not equipped to deal with the labor-intensive process and were suspicious of it.
The lenders’ thinking, said the economist Thomas Lawler, went like this: “I lend someone $200,000 to buy a house. Then he says, ‘Look, I have someone willing to pay $150,000 for it; otherwise I think I’m going to default.’ Do I really believe the borrower can’t pay it back? And is $150,000 a reasonable offer for the property?”
Short sales are “tailor-made for fraud,” said Mr. Lawler, a former executive at the mortgage finance company Fannie Mae.
Last year, short sales started to increase, although they remain relatively uncommon. Fannie Mae said preforeclosure deals on loans in its portfolio more than tripled in 2009, to 36,968. But real estate agents say many lenders still seem to disapprove of short sales.
Under the new federal program, a lender will use real estate agents to determine the value of a home and thus the minimum to accept. This figure will not be shared with the owner, but if an offer comes in that is equal to or higher than this amount, the lender must take it.
Mr. Paul, the Phoenix agent, was skeptical. “In a perfect world, this would work,” he said. “But because estimates of value are inherently subjective, it won’t. The banks don’t want to sell at a discount.”
There are myriad other potential conflicts over short sales that may not be solved by the program, which was announced on Nov. 30 but whose details are still being fine-tuned. Many would-be short sellers have second and even third mortgages on their houses. Banks that own these loans are in a position to block any sale unless they get a piece of the deal.
“You have one loan, it’s no sweat to get a short sale,” said Howard Chase, a Miami Beach agent who says he does around 20 short sales a month. “But the second mortgage often is the obstacle.”
Major lenders seem to be taking a cautious approach to the new initiative. In many cases, big banks do not actually own the mortgages; they simply administer them and collect payments. J. K. Huey, a Wells Fargo vice president, said a short sale, like a loan modification, would have to meet the requirements of the investor who owns the loan.
“This is not an opportunity for the customer to just walk away,” Ms. Huey said. “If someone doesn’t come to us saying, ‘I’ve done everything I can, I used all my savings, I borrowed money and, by the way, I’m losing my job and moving to another city, and have all the documentation,’ we’re not going to do a short sale.”
But even if lenders want to treat short sales as a last resort for desperate borrowers, in reality the standards seem to be looser.
Sree Reddy, a lawyer and commercial real estate investor who lives in Miami Beach, bought a one-bedroom condominium in 2005, spent about $30,000 on improvements and ended up owing $540,000. Three years later, the value had fallen by 40 percent.
Mr. Reddy wanted to get out from under his crushing monthly payments. He lost a lot of money in the crash but was not in default. Nevertheless, his bank let him sell the place for $360,000 last summer.
“A short sale provides peace of mind,” said Mr. Reddy, 32. “If you’re in foreclosure, you don’t know when they’re ultimately going to take the place away from you.”
Mr. Reddy still lives in the apartment complex where he bought that condo, but is now a renter paying about half of his old mortgage payment. Another benefit, he said: “The place I’m in now is nicer and a little bigger.”
Saturday, February 27, 2010
Closing Costs for Buyers
Posted by Bradford Miller Law, P.C. - Experienced in Real Estate, Landlord Tenant Law, and Estate Planning. Visit us online at http://www.bradfordmillerlaw.com/.
Closing costs for Buyers can be hard to estimate because so many factors are involved. The type of loan for example makes a big difference. However, generally speaking, a Buyer can expect to pay around 3-4% of the sale price for closing costs. Again, every transaction is different so this is only a general estimate.
Unlike Sellers, Buyers do not have to pay any Realtor commissions. So, if you are a Buyer, I strongly suggest working with a Realtor - because you will be able to utilize their knowledge and experience for free.
What type of closings costs are there for Buyers? Here are some of the more common fees and expenses that Buyers will have to pay.
-Appraisal Fee
-Application Fee (for Lender)
-Other lender related fees (such as lender direct fees or commitment fees)
-Pre-paid mortgage interest
-Pre-paid county property taxes
-Settlement/closing fee (to Title Company)
-Title insurance and endorsement fees
-Handling, messenger, fedex fees
-Recording fees
-Transfer taxes (State, County and City)
Please note this is intended to give general information to the public. Although the information is generally accurate, it cannot be guaranteed and this information should not be construed as legal advice upon which a reader can rely. In all cases, please consult a lawyer before acting. This is intended to be advertising, and not solicitation, or legal advice.
Closing costs for Buyers can be hard to estimate because so many factors are involved. The type of loan for example makes a big difference. However, generally speaking, a Buyer can expect to pay around 3-4% of the sale price for closing costs. Again, every transaction is different so this is only a general estimate.
Unlike Sellers, Buyers do not have to pay any Realtor commissions. So, if you are a Buyer, I strongly suggest working with a Realtor - because you will be able to utilize their knowledge and experience for free.
What type of closings costs are there for Buyers? Here are some of the more common fees and expenses that Buyers will have to pay.
-Appraisal Fee
-Application Fee (for Lender)
-Other lender related fees (such as lender direct fees or commitment fees)
-Pre-paid mortgage interest
-Pre-paid county property taxes
-Settlement/closing fee (to Title Company)
-Title insurance and endorsement fees
-Handling, messenger, fedex fees
-Recording fees
-Transfer taxes (State, County and City)
Please note this is intended to give general information to the public. Although the information is generally accurate, it cannot be guaranteed and this information should not be construed as legal advice upon which a reader can rely. In all cases, please consult a lawyer before acting. This is intended to be advertising, and not solicitation, or legal advice.
Sunday, February 7, 2010
What if a Buyer walks away before the closing?
What if the Buyer walks away before the closing?
If all of the contingency deadlines have passed (attorney approval, inspection, mortgage comittment date, etc), a Seller may be able to retain the Buyer's earnest money as a penalty. However, it depends on the individual facts at the time the Buyer walks away.
Bradford Miller Law, P.C. is a Chicago based law firm experienced in real estate transactions. If you are buying or selling a home, contact Attorney Bradford Miller at 312-238-9298.
Please note this is intended to give general information to the public. Although the information is generally accurate, it cannot be guaranteed and this information should not be construed as legal advice upon which a reader can rely. In all cases, please consult a lawyer before acting. This is intended to be advertising, and not solicitation, or legal advice.
If all of the contingency deadlines have passed (attorney approval, inspection, mortgage comittment date, etc), a Seller may be able to retain the Buyer's earnest money as a penalty. However, it depends on the individual facts at the time the Buyer walks away.
Bradford Miller Law, P.C. is a Chicago based law firm experienced in real estate transactions. If you are buying or selling a home, contact Attorney Bradford Miller at 312-238-9298.
Please note this is intended to give general information to the public. Although the information is generally accurate, it cannot be guaranteed and this information should not be construed as legal advice upon which a reader can rely. In all cases, please consult a lawyer before acting. This is intended to be advertising, and not solicitation, or legal advice.
Sunday, January 24, 2010
Timeline from the Buyer's point of view
Posted by Bradford Miller Law, P.C. - Experienced in Real Estate and Landlord Tenant Law
Although every transaction can be different, this is a general timeline from the Buyer's point of view.
1. You make an offer and the Seller accepts it.
2. You immediately call an Attorney and fax or email the contract to their office.
3. The Attorney will then begin their work on the transaction which will include reviewing the terms of the contract and drafting the paperwork necessary for closing.
4. Inspection deadline. In a typical contract, the Buyer has the right to have the property professionally inspected. If any problems are found, you may ask the Seller to have the items repaired or a monetary credit given. However, please note that the Seller does not have to comply with your requests and at that point you may have the option to cancel the contract and have the earnest money returned to you.
5. Mortgage commitment deadline. This is often the deadline that matters the most to all of the parties. If you are taking out a mortgage, this is the deadline where the lender either "commits" to lending money for the property or decides they cannot lend money for this property. Often this deadline needs to be extended because the lenders have become more cautious then before and therefore need more time.
6. At some point, often after the Attorneys come to an agreement on all terms, an additional amount of earnest money is given to the office of the Seller's Realtor who puts it in an escrow account.
7. A "final walk-through" takes place, usually the day before the closing.
8. The actual closing takes place which is where everyone signs the paperwork and keys are exchanged.
Overall, this timeline typically takes around 60 days to complete but every transaction is different. Deadlines sometimes need to be extended for one reason or another.
Please note this is intended to give general information to the public. Although the information is generally accurate, it cannot be guaranteed and this information should not be construed as legal advice upon which a reader can rely. In all cases, please consult a lawyer before acting. This is intended to be advertising, and not solicitation, or legal advice.
Although every transaction can be different, this is a general timeline from the Buyer's point of view.
1. You make an offer and the Seller accepts it.
2. You immediately call an Attorney and fax or email the contract to their office.
3. The Attorney will then begin their work on the transaction which will include reviewing the terms of the contract and drafting the paperwork necessary for closing.
4. Inspection deadline. In a typical contract, the Buyer has the right to have the property professionally inspected. If any problems are found, you may ask the Seller to have the items repaired or a monetary credit given. However, please note that the Seller does not have to comply with your requests and at that point you may have the option to cancel the contract and have the earnest money returned to you.
5. Mortgage commitment deadline. This is often the deadline that matters the most to all of the parties. If you are taking out a mortgage, this is the deadline where the lender either "commits" to lending money for the property or decides they cannot lend money for this property. Often this deadline needs to be extended because the lenders have become more cautious then before and therefore need more time.
6. At some point, often after the Attorneys come to an agreement on all terms, an additional amount of earnest money is given to the office of the Seller's Realtor who puts it in an escrow account.
7. A "final walk-through" takes place, usually the day before the closing.
8. The actual closing takes place which is where everyone signs the paperwork and keys are exchanged.
Overall, this timeline typically takes around 60 days to complete but every transaction is different. Deadlines sometimes need to be extended for one reason or another.
Please note this is intended to give general information to the public. Although the information is generally accurate, it cannot be guaranteed and this information should not be construed as legal advice upon which a reader can rely. In all cases, please consult a lawyer before acting. This is intended to be advertising, and not solicitation, or legal advice.
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