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 Real Estate License Law Changes 2018

Real Estate red tape

Photo by Max Pixel

 

In 2018 Governor Rauner signed two new bills focused on licensing rules for real estate brokerages, appraisers and real estate professionals in Illinois.

These new laws are designed to reduce red tape, paperwork, and compliance costs for real estate businesses.

The changes will not only help real estate brokerages but home buyers as well.

Read the full story below that was originally published in Chicago Agent Magazine:

 

Illinois real estate licensure rules get revamped

Illinois Governor Bruce Rauner signed into law Aug. 13 two bills focused on licensure rules for the state’s real estate brokerages, appraisers and other real estate professionals. Drafted with support from the Illinois Department of Financial and Professional Regulation (IDFPR) as well as the Illinois Realtors Association, the governor’s office said the new laws will reduce red tape and compliance costs for real estate businesses.

Home for saleHouse Bill 5210 is a win for small business and licensed professionals in Illinois,” Gov. Rauner said, referring to one of the bills signed into law that focused on revising brokerage licensing requirements. “It is another step forward in our goal of reducing the amount of red tape, paperwork, and regulatory burden that puts our business owners and our state at a disadvantage.”

Under the new rules included in H.B. 5210, brokerage firms will be able to submit licensing information for all registered offices and employees at the same time, rather than submit separate forms for each individual office. The process of submitting, updating or renewing licenses will be made easier with the state’s recently unveiled online services portal.

According to Kreg Allison, director of the Division of Real Estate at the IDFPR, these new rules for brokerage licenses will not only reduce the direct costs of compliance by eliminating duplicitous application fees. Even more significant, he says, is the time that brokerage firms will save by getting all the steps required in the license renewal or revision process out of the way at once, using a single online platform to make changes in real time.

Illinois home with tax lienStreamlining the brokerage licensing process is good news for consumers as well, Allison says.

“Now consumers will be able to look up a licensed firm and find everyone affiliated with that firm, including each of its offices and who manages those locations,” Allison says. “The data is going to look much better and be easier to find as we move everything online.”

Gov. Rauner also signed H.B. 5502, aimed at increasing the number of licensed real estate appraisers operating within Illinois. According to Rep. Tony McCombie (R-Savanna), increased education and licensure costs have contributed to a shortage of appraisers in the state. Allison explained that the new law would allow appraisers to maintain their license to operate in Illinois indefinitely while introducing other rule changes that encourage greater numbers of licensed real estate appraisers in the state.

These latest bills and the digital records initiative are part of a continuing effort by state officials to streamline professional licensing requirements for all regulated industries.

“On behalf of more than 47,000 Realtors throughout Illinois, we support this effort and appreciated the opportunity to work with IDFPR in crafting and passing this legislation,” said Illinois Realtors CEO Gary Clayton in a statement. “This is a sound policy initiative that will streamline the regulatory process for Illinois businesses.”

This story originally appeared in Chicago Agent Magazine and was written by Andrew Morrell

 

Federal Reserve to Keep Interest Rates Steady

If you are planning on buying a home in the near future, there is good news for you from the Federal Reserve about interest rates.

The Federal Open Market Committee unanimously voted to maintain the federal funds rate at a range of 1.75-2 percent.

 

Here is the original story as published by The Federal Savings Bank:

Fed holds benchmark interest rate steady for now

August 2018

The Federal Open Market Committee wrapped up its fifth meeting of 2018 with a unanimous vote to maintain the federal funds rate at a range of 1.75-2 percent, according to the group’s statement.

Home for saleThough rates will remain the same, the Fed also alluded to a strong national economic climate, which will likely result in future rate hikes later this year.

With only three meetings left in 2018 – Sept. 25-26, Nov. 7-8 and Dec. 18-19 – it’s not hard to narrow down when those increases might happen. The New York Times reported that the paper expects them to occur in September’s and December’s meetings.

 

Why the Fed raises rates

The Federal Reserve typically decides to increase interest rates during times of economic growth. But just because FOMC members voted to maintain the current rate doesn’t mean they’re not optimistic about current conditions.

First Time Home Buyer Mortgage WorkshopIn fact, the statement issued after the meeting pointed to job gains and household spending as indications of strength.

In the most recent Employment Situation, the Bureau of Labor Statistics reported an increase in nonfarm payroll employment of 213,000 in June. Wages also increased, with the average pay increasing 5 cents to $26.98 per hour.

Personal consumption expenditures – another way of saying consumer spending – increased 0.4 percent in June, according to the most recent release from the Bureau of Economic Analysis.

The increased spending was primarily focused on accommodations and restaurants, a sign of strong consumer confidence.

Because of these positive signals, many economists are confident that there will be two rate hikes before the end of the year.

 

How consumers can prepare for increased rates

Though there’s no rate hike to respond to this month, consumers can take steps to prepare for any increases that might occur in the coming months.

Model Home TaxAlthough a rate hike likely won’t have an immediate effect on most consumers’ day-to-day financial lives, they can see gradual changes in interest rates and other costs over time.

Rate changes could lead to higher credit card interest rates. As such, consumers who are carrying a balance now might begin to strategize a plan to pay down their debt.

Mortgage interest rates may also begin to escalate. So far in 2018, rates have grown from an average of 3.95 percent for a 30-year fixed-rate mortgage at the beginning of January to 4.54 percent for the same product during the week ending July 26, according to Freddie Mac’s Primary Mortgage Market Summary.

For prospective homebuyers hoping to close on a purchase this year, it may be smart to get preapproved soon.

This story was originally published by The Federal Savings Bank

 


* 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


 

5 Stupid Reasons Mortgage Applications Get Denied

mortgage application

Are you beginning the mortgage application process and want to increase your chances of being approved?

Have you had a mortgage application turned down and don’t understand why?

It can create a lot of insecurity when you don’t know the reason your mortgage application has been denied. It can also create a lot of stress when you decide to go into the process a second time.

To help you get the home of your dreams, in this post we list five stupid (but surprisingly common) reasons mortgage applications get denied.

 

Five dumb reasons your mortgage was rejected

  • You haven’t built a credit history with credit cards
  • You just got brand new credit cards
  • You didn’t pay a medical bill
  • You changed jobs
  • You lied on your application

 

You haven’t built a credit history with credit cards

First Time Home Buyer Mortgage WorkshopYou might be thinking that credit card debt would be a strike against you, but that’s not really true.

A credit card debt that you’re making regular payments on shows that you have a record of making debt payment and actually helps your credit rating.

A lot of missed payments on your credit cards is definitely a negative, but carrying debt that you make payments on is not. It gives you a credit history that mortgage lenders can review. That’s much better than no history.

According to a recent report by the Consumer Financial Protection Bureau, about 45 million Americans are “credit invisible”.  This means they don’t have enough history to have a credit report on file with the three major credit bureaus (Equifax, Experian, and TransUnion).

Having credit card debts and payments is a good thing. When used along with records such as rent payments, cell phone bills, and school tuition, it just could be what helps you get that mortgage.

 

You just got brand new credit cards

Caution signDid you know that signing up for a new credit card can lower your credit score?

New credit card applications can ding your credit score by up to five points, says Beverly Harzog, author of “The Debt Escape Plan.”

Five points may not seem like much, but if you are right on the border of qualifying for a mortgage, your new credit card could cause your loan application to be denied. Don’t open new credit card accounts right before you apply for a mortgage.

Even if your lender says your credit looks good, don’t open new credit cards or spend money on big purchases such as furniture until after you’ve moved in. A lender can yank your loan up until the last minute if they have reasons to suspect anything. It’s better to be safe than sorry.

 

You didn’t pay a medical bill

Real Estate TaxesIf you default on medical bills, the most common procedure is for the doctor’s office or hospital to sell it to a debt collection agency.

The debt collector will usually notify the credit bureaus that you’ve defaulted on your medical payments. This will definitely be bad for your credit rating.

If you are able to pay off your medical debts entirely, you should always take that route.  If not, most doctors and hospitals will work with you to establish a payment plan.

Just like with your credit card debt, being able to show that you are making regular payments on existing debts can actually help you on your mortgage application.

 

You changed jobs

commercial property office buildingYou might not think that changing your job would be a big deal, especially if you’re not making more money.

However, mortgage lenders like to see at two years of consistent income history when they are approving loans.

As a result, changing jobs shortly before you apply for a mortgage can hurt your application.

Unfortunately, you don’t always have control over your job, and layoffs happen. If you are laid off, finding a new job will take priority over buying a home.

When you do have a job but are considering looking for a new one, we recommend putting it off until after your mortgage is approved.

 

You lied on your application

Fraud AlertThe fact that you should be honest on your mortgage application would seem obvious.

If you are tempted to exaggerate about your income, for example, realize that mortgage lenders are going to be doing their research before you get a loan.

Any misrepresentations on your mortgage application could be considered mortgage fraud. That’s not just going to get your loan denied, it could even result in criminal charges.

 

With mortgages, honesty is always the best policy.

 

Article Source: 5 Mortifying Reasons Mortgage Applications End Up in the ‘Reject’ Pile – Realtor.com


* 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


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


Illinois Underwater Homes Trap Homeowners in Place

DuPage County Property

Illinois home values in some areas have never fully recovered from the real estate market crash, trapping some homeowners in houses that they are ready to move out of.

 

Trapped in their underwater mortgages

For example, Steinar Andersen of Huntley Illinois is ready to move out of the state. He is a disabled veteran who cannot work because of service-related injury who still owes $187,000 in principle on his home.

“We really should be living in Arizona as it is more “disability friendly” and the property taxes are much less,” he said. He can’t though because he is so far underwater on his home loan.

Another example is Collen Percy and her recently retired husband, currently living in Plainfield.

“We’re stuck,” she said. “We would love to sell and go live in a smaller home so we don’t have the upkeep and tax burden.”

Unfortunately, they are $85,000 underwater on their suburban Plainfield home. They’re concerned that rising property taxes are further eroding their home’s value, pushing the opportunity to sell even further into the future.

Related: High Property Taxes Sending Illinois Homeowners Towards a Cliff 

 

Illinois has the highest rate of underwater homes

Edge of CliffA study of negative equity by real estate site Zillow found that nationwide, less than 10% of homeowners have negative equity in their homes.

In Illinois however, 16.4 percent of homeowners owe more on their mortgage than their home is valued at. Nationally, only the State of Louisiana had a higher rate.

In Chicago, the negative equity rate is at 20%, overtaking Las Vegas as the city with the highest negative equity rate in the nation.

 

Difficulty selling

The combination of negative equity and high property taxes can mean homeowners who want to relocate can’t actually sell their homes.

“It makes it difficult to move for a new job opportunity to relocate elsewhere,” Zillow economist Sarah Mikhitarian said.

The high property tax rates in Illinois serve to help slow or decrease the value of homes.

Related: Illinois Has Second Highest Property Taxes in Nation

Home prices in Illinois, while up since 2013, are still down 10 percent compared with the market peak in 2006, according to data from the Federal Housing Finance Agency.

Illinoisans need reforms to make owning a home more affordable, and staying in or moving to the Land of Lincoln more attractive.

 

 

You may call The Law Offices of Lora Matthews Fausett P.C. with your questions:  630.858.0090


* 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