Attorneys At Law

Attorneys practicing in and around the Chicagoland area. Experienced in the practice areas of Real Estate Law, Mortgage Foreclosure Defense Litigation, Social Security Disability, Business Law, & Estate Law.

Attorneys At Law - Attorneys practicing in and around the Chicagoland area. Experienced in the practice areas of Real Estate Law, Mortgage Foreclosure Defense Litigation, Social Security Disability, Business Law, & Estate Law.

Illinois Foreclosure Rates Dropping but Still Among Nation’s Highest

Foreclosure home in Illinois

Photo by respres licensed under the Creative Commons Attribution 2.0 Generic license

As the national economy improves, we are beginning to see some improvements in the Illinois real estate market.

The number of Illinois homes that have entered into the foreclosure process fell 10 percent since May, according to a report by the real estate market research firm Attom Data Solutions.

Foreclosures in Peoria are down 23%, foreclosures in and Champaign-Urbana are down 55 percent, and Rockford, with some of the highest foreclosure rates in the nation, fell 25 percent in the past 12 months ending in May.

Attom Data Solutions Vice President Daren Blomquist has said foreclosure starts are a “good barometer of the immediate financial condition of homeowners in Illinois”.

Model Home TaxBecause of the improving economy and falling unemployment rate, people that have bought homes in Illinois since the recession have seen their home values rise.

With the improved economy and real estate market, it has become easier for people to sell their homes if they need to, rather than facing foreclosure.

“If they do lose their job, they’ll typically have the equity in their home to get out of trouble,” he said Mr. Blomquist.

Illinois has second highest property taxes in nationOne major problem with home values in Illinois is that the high property taxes tend to suppress home values, thus lowering equity.

Even with the lowering number of foreclosures, Illinois has the sixth-highest foreclosure rate in the U.S.

Related post: Illinois has second highest property taxes in the nation


* Advertising Material: To the extent that the information in this post is interpreted as attorney advertising in accordance with the Illinois Rules of Professional Conduct or within the meaning of state bar rules from all other localities, this statement is made pursuant to those rules.

Specialties: Specialization claims are prohibited by Illinois Supreme Court Rules and we do not claim to be specialists. The content of this e-mail is organized and presented for the sole purpose of general information. None of the included content should be construed as legal advice. Viewing this e-mail or e-mailing the account holder does not create an attorney-client relationship. NOTICE: This page may be considered advertising material.


 

The Law Offices of Lora Fausett P.C. provides real estate law services including loan modificationsbuying and selling legal assistanceshort sales and deeds in lieumortgage foreclosure defense, and more.

Located in Glen Ellyn, Illinois and serving clients in DuPageCookKane, Will, and Kendall Counties.

For Information Call 630-858-0090


President Trump Suspends Mortgage Fee Rate Cuts

On his first day in office, President Donald Trump signed an executive order reversing a recently passed Obama administration policy that reduced the fee rate for Federal Housing Administration backed loans.

What is the change?

The administration canceled a reduction in the Federal Housing Administration’s annual fee for most borrowers.

The cut passed during the final days of the Obama administration would have reduced the annual premium for someone borrowing $200,000 by $500 in the first year.

When the fee rate policy change was announced by Obama’s Housing and Urban Development secretary Julian Castro in January, it was criticized by Donald Trump and Republicans.

What are the fees for?

The premiums fund the Mutual Mortgage Insurance Fund, which bails out lenders if borrowers default on their mortgages. Republicans argued the fee reductions put taxpayers at risk by lowering the funds the FHA has to deal with mortgage defaults.

FHA mortgage loan fees were raised during the housing recession to cover program losses. The Obama policy cutting them would have returned them to almost to the level they were before the housing bubble burst in 2008.

A letter from HUD to lenders and the real estate industry announced they would “suspend indefinitely” the rate reduction, stating “more analysis and research are deemed necessary to assess future adjustments while also considering potential market conditions in an ever-changing global economy that could impact our efforts.”

What was the response to the change?

The responses to the Trump administration policy were mixed.

Senate minority leader Chuck Schumer denounced the move, while the nominee for Secretary of HUD Ben Carson criticized the new policy when it was implemented by the outgoing administration.

Some housing industry groups approved of the change, saying it would increase home buying by offsetting recent rises in mortgage rates.

Other critics included the President of the National Community Reinvestment Coalition, John Taylor, who asked through a spokesman: “Exactly how does raising the cost of buying a home help average people?”

President of the National Association of Realtors, William E. Brown, said the fee rate cuts would have allowed more people to qualify for a mortgage because it would allow them to meet the debt-to-income ratio required for borrowing money.

The mortgage rate fee hikes were originally implemented during the Obama administration when FHA was under severe stress because of the financial crisis. In 2013 the agency was bailed out by the for $1.7 billion after a huge wave of mortgage defaults.

What does it mean?

In their letter to the real estate industry, HUD stated that “FHA is committed to ensuring its mortgage insurance programs remains viable and effective in the long term for all parties involved, especially our taxpayers.”

With this recent policy change, potential home buyers and the real estate industry will need to wait and see what the effects on the housing market will be.


* Advertising Material: To the extent that the information in this e-mail is interpreted as attorney advertising in accordance with the Illinois Rules of Professional Conduct or within the meaning of state bar rules from all other localities, this statement is made pursuant to those rules.

Specialties: Specialization claims are prohibited by Illinois Supreme Court Rules and we do not claim to be specialists. The content of this e-mail is organized and presented for the sole purpose of general information. None of the included content should be construed as legal advice. Viewing this e-mail or e-mailing the account holder does not create an attorney-client relationship. NOTICE: This page may be considered advertising material.


The Law Offices of Lora Fausett P.C. provide real estate law attorney services including short sales and deeds in lieuloan modifications and workouts, and buying & selling assistance.

For Information Call 630-858-0090


Sources:

Trump Reverses Obama’s Mortgage Fee Cuts on First Day – Bloomberg

Trump’s first executive action: Cancel Obama’s mortgage premium cuts – USA Today

Trump’s Mortgage Fee Cut Reversal: What it Really Means for House-Hunters – Fox Business

HUD Official Website

Five Tips for Beating Bank Foreclosure

Since the recession of 2008, foreclosures have become much more common than before. Luckily, there is a new legal practice area for lawyers to help homeowners keep their homes. Lawyers combine many facets of their knowledge to help you keep your home.

Five Common Defenses

Standing is one of the tactics. The entity filing the suit must be the proper party to enforce the note and foreclose the mortgage.

Acceleration would be the next tactic. A note is what is called an installment contract. One party lends money and the other makes periodic payments. If the responsible party fails to live up to their end of the bargain, the lender can sue for past due amounts.

Damages. As part of any civil lawsuit for money, including breach of contract, the plaintiff must prove damages.

Evidence. Lack of evidence can cause any case to collapse. Lack of evidence can cause any case to derail.

Second Lawsuits. In every other practice of law, once the case is closed, that is the end of it. However, in Florida, the Supreme Court of the state has decided that banks can have as many chances as they like as long as they can claim a different date on the defaults.

For More In-Depth Information Click the Article:

http://www.law360.com/articles/695014/5-tips-for-beating-a-bank-foreclosure

Short Sale Vs. Deeds in Lieu

There are options out there for many that are facing foreclosure on their homes. Two of them are very similar and often get confused but they are both helpful methods that can help prevent you from going into foreclosure. Those two options are short sales and deeds in lieu.

Short Sale

A short sale is when the homeowner sells their home to a third party for less than the money owed on the mortgage. The lender agrees to accept the proceeds made in the sale, in exchange for releasing the lien on the property.

Short Sale Process

The lender’s loss mitigation department must approve of the short sale before a transaction can occur. The seller must submit a loss mitigation application to be approved for a short sale and this includes:

  • A financial statement, in the form of a questionnaire, that provides details regarding monthly expenses and income
  • Proof of income (if applicable)
  • Most recent tax returns
  • Bank statements (two recent statements for all accounts)
  • A hardship letter

More than likely you will need to provide that there is an offer from a potential purchaser as well on the application. Lender’s usually want there to be an offer before they consider a short sale. An exception to this is with the government’s Home Affordable Foreclosure Alternatives Program (HAFA). This aids the lender in approving of the short sale terms before the home is listed and the lender accepts the short payoff in full satisfaction of the mortgage. HAFA also prevents the lender from coming after the seller with a deficiency judgement.

Deficiency Judgements

The deficiency is the difference between the amount received in the short sale and what is actually owed on the mortgage. Many states prohibit deficiency judgments after foreclosures, but not many do for short sales. Deficiency judgments by state. To avoid a deficiency judgment, the short sale agreement must expressly state that the transaction is in full satisfaction of the debt and that the lender waives its right to the deficiency.

Deeds in Lieu

Deed in lieu is another option to help you avoid foreclosure if you can’t sell your home through a short sale. A deed in lieu of foreclosure is a transaction where the homeowner voluntarily transfers the title to the property lender in exchange for release of mortgage obligation.

Deed in Lieu of Foreclosure Process

Like a short sale, the borrower must request a loss mitigation package from the lender. What you will need to provide the lender with:

  • A financial statement that provides detailed information about your monthly income and expenses
  • Proof of Income (if applicable)
  • Most recent tax returns
  • Bank statements (two recent for all accounts)
  • A hardship letter

If you are approved, you will receive two documents from the lender, one is a deed that transfers ownership of the property to the lender and an estoppel affidavit. The estoppels affidavit sets the terms of the agreement. It will include a provision that you are acting freely and voluntarily. It may include provisions about the transaction and if it’s in full satisfaction or if the lender has the right to a deficiency judgement.

Deficiency Judgments

In the case of a deed in lieu of foreclosure, the deficiency is the difference between the fair market value of the property and the total debt. In most cases, a deed in lieu of foreclosure will release borrowers of all liability and obligations under the mortgage, but not always. Most states do not have a law prohibiting a lender from seeking a deficiency judgment. HAFA deeds in lieu are considered full satisfaction of the debt owed. To avoid a deficiency judgment, the agreement must state that the transaction is in full satisfaction of the debt.

NATIONAL MORTGAGE SETTLEMENT

The Federal Government & Attorneys General have reached a landmark settlement with major banks. The agreement covers roughly $25 billion in relief for distressed borrowers, states and federal government. After many months of negotiation, 49 state attorneys general and the federal government have reached agreement on a historic joint state-federal settlement with the country’s five largest loan servicers:

Ally/GMAC
Bank of America
Citi
JPMorgan Chase
Wells Fargo Who May be Eligible for Assistance

Because of the complexity of the mortgage market and this agreement, which will be performed over a three-year period, borrowers will not immediately know if they are eligible for relief. Borrowers from states who did not sign the settlement will not be eligible for any of the relief directly to homeowners. Borrowers from Oklahoma will not be eligible for any of the relief directly to homeowners because Oklahoma elected not to join the settlement.

The settlement provides assistance for:

Homeowners needing loan modifications now, including first and second lien principal reduction. The servicers are required to work off up to $17 billion in principal reduction and other forms of loan modification relief nationwide.

State attorneys general anticipate the settlement’s requirement for principal reduction will show other lenders that principal reduction is one effective tool in combating foreclosure and that it will not lead to widespread defaults by borrowers who really can afford to pay.

Borrowers who are current, but underwater. Borrowers will be able to refinance at today’s historically low interest rates. Servicers will have to provide up to $3 billion in refinancing relief nationwide.

Borrowers who lost their homes to foreclosure with no requirement to prove financial harm and without having to release private claims against the servicers or the right to participate in the OCC review process. $1.5 billion will be distributed nationwide to some 750,000 borrowers. Additional information is available at: http://www.nationalmortgagesettlement.com/help.