What Is It Used For?
Hopefully, you will not have to use the security deposit at all and can simply return it to your fantastic tenant in full when their lease is up.
Unfortunately, it is not always that simple. A security deposit is a kind of insurance for landlords. It protects you when there is a breach of contract, the contract being the lease with your tenant. Although you are allowed to sue a tenant for the money they owe you, even if you are awarded the judgment against them, it is often impossible to actually collect this money. The security deposit offers you some buffer to soften the blow of the lost money.
You cannot keep a security deposit whenever you feel like it. Each state has certain laws regarding when you are legally allowed to keep a tenant’s security deposit. Common examples include damage to the apartment in excess of normal wear and tear and nonpayment of rent.
Published by: Bradford Miller Law, P.C.
10 S. LaSalle, Suite 2920
Chicago, IL 60603
312-238-9298
Key words: Chicago short sale attorney, Chicago residential real estate attorney, Chicago landlord tenant law attorney, Chicago Landlord Attorney, Chicago eviction attorney, Estate planning attorney, Chicago real estate attorney, Chicago real estate lawyer, Chicago real estate attorney fees, Chicago estate planning attorney. This is intended to be advertising. Please consult with an attorney before acting on any information given here.
Wednesday, November 29, 2017
Thursday, November 16, 2017
Line of credit vs. Home Equity Loan
Sometimes it's helpful to compare and contrast different types of loans. A Home Equity Line Of Credit (HELOC) is similar to a Home Equity Loan, but there are some important differences.
Generally, a HELOC is more flexible than a home equity loan. You only borrow what you need, and you can typically go back for more money when you need to (as long as you stay below your maximum credit limit, and as long as your lender does not cancel your line of credit unexpectedly). You might use a checkbook or payment card to access your line of credit.
With a home equity loan or "second mortgage," you do it all in one shot. You'll get the entire maximum loan amount in one lump-sum, and you'll have to pay interest on the entire loan balance. With a HELOC, on the other hand, you only owe interest on any outstanding loan balance.
Typically your monthly payments will remain the same each month with a home equity loan, and you'll have a fixed interest rate (or one that only changes periodically).
The most common line of credit for consumers is a home equity line of credit (HELOC).
Published by: Bradford Miller Law, P.C.
10 S. LaSalle, Suite 2920
Chicago, IL 60603
312-238-9298
Key words: Chicago short sale attorney, Chicago residential real estate attorney, Chicago landlord tenant law attorney, Chicago Landlord Attorney, Chicago eviction attorney, Estate planning attorney, Chicago real estate attorney, Chicago real estate lawyer, Chicago real estate attorney fees, Chicago estate planning attorney. This is intended to be advertising. Please consult with an attorney before acting on any information given here.
Generally, a HELOC is more flexible than a home equity loan. You only borrow what you need, and you can typically go back for more money when you need to (as long as you stay below your maximum credit limit, and as long as your lender does not cancel your line of credit unexpectedly). You might use a checkbook or payment card to access your line of credit.
With a home equity loan or "second mortgage," you do it all in one shot. You'll get the entire maximum loan amount in one lump-sum, and you'll have to pay interest on the entire loan balance. With a HELOC, on the other hand, you only owe interest on any outstanding loan balance.
Typically your monthly payments will remain the same each month with a home equity loan, and you'll have a fixed interest rate (or one that only changes periodically).
The most common line of credit for consumers is a home equity line of credit (HELOC).
Published by: Bradford Miller Law, P.C.
10 S. LaSalle, Suite 2920
Chicago, IL 60603
312-238-9298
Key words: Chicago short sale attorney, Chicago residential real estate attorney, Chicago landlord tenant law attorney, Chicago Landlord Attorney, Chicago eviction attorney, Estate planning attorney, Chicago real estate attorney, Chicago real estate lawyer, Chicago real estate attorney fees, Chicago estate planning attorney. This is intended to be advertising. Please consult with an attorney before acting on any information given here.
Monday, November 13, 2017
what is a Reverse Mortgage
A reverse mortgage is a loan for seniors age 62 and older. HECM reverse mortgage loans are insured by the Federal Housing Administration (FHA) and allow homeowners to convert their home equity into cash with no monthly mortgage payments.
However, borrowers are required to continue paying property taxes and insurance and maintain the home according to FHA guidelines. Typically the loan does not become due as long as you live in the home as your primary residence and continue to meet all the loan obligations.
Reverse mortgage loans are commonly used to pay for home renovations, medical and daily living expenses. Homeowners who have an existing mortgage often use the reverse mortgage loan to pay off their existing mortgage and eliminate monthly mortgage payments.
A reverse mortgage loan uses a home’s equity as collateral. The amount of money the borrower can receive is determined by the age of the youngest borrower, interest rates and the lesser of the home’s appraised value, sale price and the maximum lending limit. The funds available to you may be restricted for the first 12 months after loan closing, due to HECM requirements. In addition, you may need to set aside additional funds from loan proceeds to pay for taxes and insurance.
The loan does not generally have to be repaid until 6 months after the last surviving homeowner moves out of the property or passes away. At that time, the estate typically sells the home to repay the balance of the reverse mortgage and the heirs receive any remaining equity. The estate is not personally liable for any additional mortgage debt if the home sells for less than the payoff amount of the reverse mortgage loan.
Published by: Bradford Miller Law, P.C.
10 S. LaSalle, Suite 2920
Chicago, IL 60603
312-238-9298
Key words: Chicago short sale attorney, Chicago residential real estate attorney, Chicago landlord tenant law attorney, Chicago Landlord Attorney, Chicago eviction attorney, Estate planning attorney, Chicago real estate attorney, Chicago real estate lawyer, Chicago real estate attorney fees, Chicago estate planning attorney. This is intended to be advertising. Please consult with an attorney before acting on any information given here.
However, borrowers are required to continue paying property taxes and insurance and maintain the home according to FHA guidelines. Typically the loan does not become due as long as you live in the home as your primary residence and continue to meet all the loan obligations.
Reverse mortgage loans are commonly used to pay for home renovations, medical and daily living expenses. Homeowners who have an existing mortgage often use the reverse mortgage loan to pay off their existing mortgage and eliminate monthly mortgage payments.
A reverse mortgage loan uses a home’s equity as collateral. The amount of money the borrower can receive is determined by the age of the youngest borrower, interest rates and the lesser of the home’s appraised value, sale price and the maximum lending limit. The funds available to you may be restricted for the first 12 months after loan closing, due to HECM requirements. In addition, you may need to set aside additional funds from loan proceeds to pay for taxes and insurance.
The loan does not generally have to be repaid until 6 months after the last surviving homeowner moves out of the property or passes away. At that time, the estate typically sells the home to repay the balance of the reverse mortgage and the heirs receive any remaining equity. The estate is not personally liable for any additional mortgage debt if the home sells for less than the payoff amount of the reverse mortgage loan.
Published by: Bradford Miller Law, P.C.
10 S. LaSalle, Suite 2920
Chicago, IL 60603
312-238-9298
Key words: Chicago short sale attorney, Chicago residential real estate attorney, Chicago landlord tenant law attorney, Chicago Landlord Attorney, Chicago eviction attorney, Estate planning attorney, Chicago real estate attorney, Chicago real estate lawyer, Chicago real estate attorney fees, Chicago estate planning attorney. This is intended to be advertising. Please consult with an attorney before acting on any information given here.
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