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.

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.
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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.