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
Wednesday, June 30, 2010
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.
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