What Are Your Options for Avoiding a Foreclosure in Illinois?

IL foreclosure attorney, Illinois real estate lawyer, When homeowners default on their mortgage payments, sometimes the only option for lenders is to initiate foreclosure proceedings. However, this can lead to conflict between lenders and borrowers that may result in property damage, increased expenses, and challenges related to finding a new buyer. Sometimes, it is in the best interest of both lenders and borrowers to consider other options that may prevent the need for foreclosure.

Understanding Illinois Foreclosure Alternatives

When possible, lenders may consider working with homeowners to explore options that can prevent defaulting on payments or otherwise make a foreclosure unnecessary. These options include:

  • Loan modifications: Depending on the type of loan, it may be possible to pursue a modification to the terms, including lower monthly payments, lower interest rates, and a longer payback period.
  • Forbearance: As a temporary solution, the lender may allow the borrower to make smaller monthly payments for a period of time and then make up the difference in future monthly payments.
  • Refinancing: Similar to a loan modification, refinancing may allow borrowers to lower interest rates or monthly payments, but it often requires ownership of a certain amount of equity in the home, a good credit score, and the payment of additional closing costs.
  • Short sales: In a short sale, the homeowner agrees to sell the property for less than the remaining amount of the mortgage and give all proceeds to the lender in exchange for the lender’s forgiveness of the remaining balance.
  • Acquiring the deed in lieu of foreclosure: In this option, the borrower turns the deed for the home over to the lender and is not required to make any further mortgage payments. This often saves lenders and borrowers time and court costs when compared to a foreclosure.

An experienced real estate attorney can advise lenders and borrowers as to the viability and benefits of each of these options depending on the specific situation and work toward a solution that best meets each party’s needs. When a foreclosure is necessary, we can also represent and advise lenders to ensure that correct procedures are followed throughout each step.

Contact a DuPage County Real Estate Attorney

At The Illinois Law Office of Stock, Carlson & Duff LLC, we are committed to helping buyers, sellers, and lenders in residential real estate transactions. We can work to help you avoid or manage legal conflict and ensure that the relevant processes go as smoothly as possible. Contact an experienced Wheaton residential real estate lawyer today at 630-665-2500.

 

Source:

https://www.ilga.gov/legislation/ilcs/ilcs4.asp?ActID=2017&ChapterID=56&SeqStart=107100000&SeqEnd=115800000

New Illinois Eviction Law Helps Both Tenants and Landlords

Il eviction attorney, IL eviction laws, IL real estate lawyerThe COVID-19 outbreak across the U.S. has left many Americans wondering how they will make rent payments and what will happen if they are unable to do so. For the past few months, a residential eviction moratorium has been in place, restricting residential tenants from being evicted due to late rent payments. This moratorium has been extended on multiple occasions, but is intended to conclude at the end of July. A new state grant program is beginning in August to provide financial assistance to those who are struggling to make rent payments, yet this may not be enough for many Illinois residents to stay afloat for long.

In mid-July, the Illinois Supreme Court adopted a new rule for eviction proceedings that will go into effect immediately. Whether it is in response to COVID-19’s effect on renters or was a longtime coming, new Rule 139 requires aims to better inform all parties involved in eviction cases.

Rule 139

The eviction process is not as immediate as many may think — a number of notices are required and it can take time for the court to address the eviction request. Rule 139 does not quicken up the eviction process, but it better informs the renter and court about the details of the landlord’s eviction request and case against their tenant. Moving forward, all eviction complaints must include a copy of the written eviction notice and relevant portions of the lease agreement where applicable.

The Illinois Supreme Court has released standardized forms for use by the landlord in place of the eviction notice or demand, in addition to the use of an affidavit for landlords that do not have a lease or written lease agreement. It is now required for the landlord to include the attachment of demands, termination notices, proof of service of the demands and notices, and relevant portions of the lease agreement when filing the eviction complaint.

These new requirements provide tenants with the relevant information for their case without having to wait for the trial or discovery to be informed about the allegations being made against them. This will allow tenants to find a reputable attorney who can represent their case well in advance of the court date. They will also have additional time to formulate their defense strategy against the eviction. Being able to reference the exact terms of the leasing agreement that have not been followed will also allow judges to give a more well-informed and timely response to the eviction case.

Contact a DuPage County Residential Real Estate Lawyer

Receiving an eviction notice can send anyone into a mental state of panic and uncertainty. In order to better clarify the reasons behind any eviction notices, the Illinois Supreme Court has required more information to be readily available to tenants facing possible eviction. The legal team at Stock, Carlson, Oldfield & McGrath, LLC remain in-tune to any legal updates regarding Illinois real estate and their attention to detail can help you be well-prepared for your case. Eviction notices should be taken seriously and you should search for a reputable attorney from the first notice received. Contact a Wheaton real estate attorney for help with your defense strategy at 630-665-2500.

 

Sources:

https://www.illinoislawyernow.com/2020/07/illinois-supreme-court-adopts-new-rule-for-eviction-cases/

https://www.isba.org/sites/default/files/blog/documents/Adopted_Amended%20Rules%20139_101_181_7-17-20.pdf

https://www.daily-journal.com/news/illinois/pritzker-extends-residential-eviction-moratorium-until-july-31/article_5c140440-b14e-11ea-a33f-27d9f797b539.html

 

How Are Commercial Real Estate Properties Valued?

IL real estate lawyer, Illinois real estate attorneyThe decision to buy or sell a commercial property is likely one of the most consequential financial decisions you will ever make. In order to get the best deal possible, proper valuation of the property is essential. An accurate appraisal of a property’s value is also used by lenders when determining how much debt the lender is willing to provide. There are several different approaches used to value commercial real estate properties.

Valuation Methods for Commercial Real Estate

Many people assume that the term “value” is synonymous with “price” or “cost.” Price and cost will certainly influence a property’s value, but they are not interchangeable terms. The value of a commercial property is typically determined by an appraiser. The three main methods for valuing a commercial property include the income approach, replacement cost approach, and market value approach. The valuation approach an appraiser will use depends on several factors including the type of property and how the property will be utilized.

  • Income Approach: An income approach or income capitalization approach is the most popular way to value commercial properties that produce income such as retail stores, office buildings, and apartment complexes. The appraiser will first estimate the property’s potential gross income and then deduct operating expenses to determine the property’s net operating income. Next, the capitalization rate or “cap rate” is used to estimate the price that the average investor would pay for the income produced by the property. The cap rate is then applied to the net operating income to determine the value of the property.
  • Replacement Cost Approach: The cost approach is much more involved than the income approach. This valuation approach considers the value of the land on which the property exists and then adds the estimated cost of constructing an exact copy of the property. Put another way, the cost approach calculates a property’s value by determining how much it would cost to completely rebuild the property and then adding this cost to the current value of the land. This approach is often used to value properties that do not generate income such as churches, schools, and hospitals.
  • Market Value Approach: The market value approach or sales comparison approach is often used to value residential properties but it may also apply to commercial properties. The value of the commercial property is estimated by comparing the property to similar properties that have recently been sold or are currently for sale. If there are no similar properties in the market area, this approach may not be effective.

Contact a DuPage County Real Estate Lawyer

Proper valuation is crucial when buying or selling commercial real estate property. At Stock, Carlson & Duff LLC, we work with a trusted group of appraisers to ensure our clients receive accurate valuations. Call our office at 630-665-2500 for a confidential consultation with a skilled Wheaton real estate attorney.

Sources:

https://www.investopedia.com/articles/realestate/12/real-estate-valuation.asp
https://homeguides.sfgate.com/three-methods-appraising-commercial-real-estate-value-1567.html