Illinois' Right to Redemption During Foreclosure

On behalf of Sulaiman Law Group, LTD posted on November 3, 2011

Illinois is still suffering from the worst housing market crisis in history; in fact, areas of Chicago are still experiencing a record number of foreclosures. Many homeowners feel helpless and trapped as they struggle to make mortgage payments - while banks seem as if they can't process foreclosures fast enough. However, not all is lost for Illinois homeowners, as they possess something known as the "right to redemption." This ability to redeem real estate subject to foreclosure can even be exercised after a bank has obtained a foreclosure judgment against them.

Right to Redemption

Under Illinois' statutory right of redemption, only the owner can exercise the right to redeem. Moreover, the amount required to redeem can include not only the principal and interest owed on a mortgage, but also the costs associated with collection, attorney's fee, court costs and additional per diem interest.

Unfortunately for homeowners, the right to redemption cannot be enforced following the judicial sale of the property. Consequently, under Illinois law the right of redemption can generally be exercised during the following periods:

• When the property subject to foreclosure is residential real estate, the borrower may redeem the property within seven months of being served with summons or by publication, or within three months after the date of entry of judgment of foreclosure, whichever is later.
• When the property subject to foreclosure is NOT residential real estate, the borrower may redeem the property within six months of being served with summons or by publication, or within three months after the date of entry of judgment of foreclosure, whichever is later.

However, the redemption period can be shortened in the following circumstances:

• When the value of the real estate on the date of judgment is less than 90 percent of the amount required to redeem AND the lender waives any and all rights to a deficiency judgment against the borrower, the redemption period will be shortened to 60 days after the date of judgment of foreclosure or the expiration of any reinstatement period, whichever is later.
• When the court deems a property abandoned, the redemption period expires 30 days after the date of judgment for foreclosure.

Under Illinois law, this right of redemption is guaranteed for residential properties - if fact, statutory language states that any attempt to waive this right for residential properties is void. However, this same restriction is not available for commercial properties, and often commercial mortgages contain an expressed provision that does waive redemption rights.

A property owner - regardless of whether they own residential or commercial real estate - needs to be vigilant in protecting their property rights during foreclosure proceedings. An experienced foreclosure attorney can help navigate Illinois' complex foreclosure laws and advise you of your rights and options.

Finding the Perfect Neighborhood: As Important as Finding the Perfect Home

The neighborhood you live in can have just as much impact on your life as the house you live in. When you decide to start looking for a new home, first create a profile of your ideal neighborhood. Here are some factors to consider.

Children

Do you have children or are you planning to have them in the future? If children are a factor, be sure to learn about the schools in your neighborhood. Even if you don't have children, buying a home in a neighborhood with good schools and a child-friendly atmosphere will give your home price a boost.


Location

The old real estate adage "location, location, location" is important for several reasons.

Do you want to be able to walk or ride your bike to work? Or do you not mind commuting further to be able to live in an area where you can escape from the hustle and bustle?

Do you want to be able to walk to restaurants and shops? Or do you not mind having to drive to go out or go shopping?

Access to public transportation or freeways is important to consider when choosing a neighborhood that accommodates your lifestyle preferences.

Type of Home

Do you want a large house with a yard to accommodate guests and children? Or do you want a condo where most maintenance is taken care of for you (and you don't mind paying HOA fees)? Drive through the neighborhood and take note of the patterns in the layout of the homes, for example, bungalow, ranch, Tudor or Victorian. Does the type of home offer the amount of space and storage you will need?

Do you like the character of old homes and neighborhoods, or do you want a brand new home? An old home can have more charm, but may also require more maintenance. In addition to the age of the home, investigating the demographics of the neighborhood may also offer insight about the average age of your neighbors. Your new community may end up better fitting your lifestyle if you know you'll be surrounded by families of similar ages to your own.

Noise

Do you not mind noise or do you want peace and quiet? If you want a lower-key neighborhood, avoid living near a college or an area with a hopping nightlife. When visiting neighborhoods you are interested in, take note of the amount of traffic and how close it might be to a major thoroughfare; both factors would impact volume levels, even during non-peak traffic hours.

Safety

In most cities, safety is also a factor. Evaluate whether a transitional neighborhood where you can get more bang for your buck is an option for you, or if a secure, established community is more your style. Local police departments will be able to provide you with information on recent crime rates in the area you are considering.

Economy

Find out how long homes are on the market and if sellers are forced to reduce their price to find a buyer. Also look around to make sure the retail isn't struggling. If you see abandoned buildings and "for rent" signs, you may want to keep looking. On the other hand, if you think the neighborhood is about to turn around, you may be able to get a great deal.

Hit the Pavement

Once you've identified several neighborhoods that are up to your standards, go investigate them. Hang out at the coffee shop or knock on some doors, and ask current residents why they love where they live. Walk around the neighborhood during the day to see what people are up to. Similarly, be sure to check out the neighborhood at night, and make sure you feel safe and secure about where you are.

Finally, if there is a neighborhood association, check if there are any construction restrictions or other similar guidelines that could hinder future plans for your home.


(reprinted from W.J. Bradley's Insight)

Chicago-area home prices post first gain in 50 months

Source: chicagotribune.com
By Mary Ellen Podmolik Tribune staff reporter
8:28 a.m. CDT, June 21, 2012

It took 50 months to happen, but the median selling price of a home in the Chicago area posted a year-over-year gain in May.

With the city of Chicago, the median sales price increased even more, the Illinois Association of Realtors reported Thursday.

It was the smallest of median price gains for the nine-county Chicago area - $170,000 last month compared with $169,900 in May 2011- but the last time prices rose on a year-over-year basis was in March 2008.

"One event does not a trend make, but the numbers have been going in the right direction to this point," said Jon Broadbooks, a spokesman for the association.

That price increase accompanied a 25.3 percent increase in sales volume. Last month, 8,276 homes were sold in the Chicago area, compared with 6,605 homes in May 2011.

Within the city of Chicago, May home sales totaled 2,037, rising 19.6 percent from May. The median home price within the city, of $203,000, was up 6.8 percent from last year's $190,000.

The gain within the city came from sales of single-family homes, not condos. A 8.9 percent uptick year-over-year in the number of single-family homes sold was accompanied by a 11.9 percent increase in the median selling price, to $151,000.

While the city's condo market saw sales rise 26.8 percent, to 1,290 units sold during the month, the median price of $249,400 was a 0.2 percent decline from May 2011.

Home sales volume was expected to rise locally heading into summer. May closings reflect homes that went under contract two to three months ago, and area real estate agents were busy with showings in February and March, in part thanks to a mild winter.

"For the first time since the recession began, median house prices are increasing on an annual basis and are forecast to continue this trend through the end of the summer," said Geoffrey J.D. Hewings, director of University of Illinois' regional economics applications laboratory, in a statement.

"The weaker than expected job figures for the last few months appear not to have affected the housing market; inventories are down, sales volumes are up and the pending sales index is at its highest point since 2008."

Take a cue from Warren - from CNBC's "Buffett Watch" Interview, Monday, 27 Feb 2012

On February 27, 2012, Warren Buffett was interview by CNBC and as a part of that interview, he talked about investing in single family homes. Serrus Capital Partners was excited to hear his comments and want to share with you that small part of the complete interview.

Can You Rent-to-Own With Bad Credit?

Tenants often tell me they don't think they will qualify to rent-to-own because they have bad credit. They are pleasantly surprised to find out that rent-to-own (also called lease-option) is the perfect way to get the house you want to buy even with bad credit!

Although every home has different qualifications, most rent-to-own homes are available to someone with a very low credit score or even no credit. The most important qualification is your desire to IMPROVE your credit score.

You can often move into a rent-to-own home with a score in the 500s as long as you can prove you have enough income to pay the monthly rent and you have money to put down towards the purchase before you move in. Your monthly gross income before taxes should be about 3x the rent. You usually need to pay about 3 - 5 % of the purchase price before your lease starts.

It's very important while you are renting that you are improving your credit score, so you will be able to qualify for a loan when the lease ends.

There are many ways to do this. You can start by learning about your credit report and what to do to increase your credit score. You can do that free at Gary Moore's website:
www.repaircredit123.com


The next step is usually to find a good credit repair or credit counseling company.

I recommend Gene Schwalen at S.O.S. or Score Optimization Systems. You can reach Gene at 866.987.6700 Option 1
optimizemyscore@mycreditsos.comwww.mycreditsos.com


It's also very important to make sure the house you are renting-to-own fits your budget. For instance, if you make $3000 per month in gross household income, you can afford monthly rent that is about $1000-$1200 per month and you can afford to buy a house that costs about $100,000 - $120,000. If you want to rent-to-own a house that costs $100,000-$120,000, you will need about $3,000 - $6,000 on hand to pay towards the purchase before you move in.

Then while you are renting you will earn more money toward the purchase -- your rent credit. At Happy Home Solutions, we try to give very generous rent credit -- usually at least 50% of the rent. That money also goes toward the purchase. For instance, if you are paying $1000 per month for rent, and earning 50% rent credit, then you are earning $500 per month or $6000 towards the purchase in just one year!

Wouldn't it feel great to know that money is going towards your own house you are buying instead of in your landlord's pocket?

Give us a call today, so we can help you make that dream a reality!

Diane and Adam St. James
630-780-4663 office
630-697-4500 Adam's cell
312-213-8137 Diane's cell
Adam@MyHappyHomeSolutions.com
Diane@MyHappyHomeSolutions.com

The Road to the Worst Credit Score Ever

by Amy Fontinelle
Wednesday, September 29, 2010

Your credit score can range from 300 to 850 — the higher, the better. Most articles about credit scores focus on how you can improve your score to get approved for loans and get the best possible interest rates from lenders, but here, we're going to take the opposite approach and tell you how to achieve the worst credit score ever.

If any of these behaviors apply to you, watch out — you're in the process of doing some serious damage to your financial reputation.

1. Don't Pay Your Bills

The most important part of your credit score is your repayment history, so if you want to have terrible credit, don't pay your bills.

Did you get a bill in the mail from your credit card company today? Don't open it. Leave it in the envelope and throw it on top of the growing pile of paper on your dining room table. By refusing to pay even the minimum monthly payment, the repayment history on your credit report will look terrible, showing that you have bills you haven't paid for 90-plus days. Eventually, your account will go to collections, making your score plummet further.

Better yet, throw your unopened credit card bill in the trash. That way, a thief might be able to acquire enough information about you to steal your identity, leaving you with a gigantic financial mess to clean up and completely trashing your credit score.

While you're at it, don't open your monthly mortgage statement, either. Keep doing this month after month. Eventually, you'll lose your home to foreclosure. Between the unpaid mortgage and the credit card bills, you may even have to declare bankruptcy. Bankruptcies and foreclosures are a great way to ruin your credit not just in the short term, but for years to come.

2. Charge It!

The second most important factor of your credit score is how much you owe. So if you want to ruin your credit score, make sure to max out all of your credit cards. Better yet, try to spend past the limit! Then, don't pay the bill — ever. Let the interest and late fees rack up. Instead of keeping your credit card balances below 15-25% of your total available credit, as credit experts like Liz Pulliam Weston recommend, see if you can manage to owe $10,000 on a card with a $5,000 limit.

3. Apply, Apply, Apply

Ten percent of your credit score is based on how many new accounts you have applied for recently. So if you want to mar this component of your score, why not surf the web and see how many credit card applications you can fill out in a single day? Best of all, if you get approved, you'll have new tools to dig yourself into an even deeper financial hole.

4. Be a One-Trick Pony

Your credit score tends to be higher if you use a mix of different types of credit, such as credit cards, store accounts, an auto loan and a mortgage. Of course, to get approved for a mix of credit in the first place, you'd have to be responsible with your money. If you want to look bad, don't mix it up - stick with credit cards. These are one of the easiest types of credit to get.

5. Assume That It's Hopeless

Once you've thoroughly destroyed your credit, there's no sense in hoping that things could get better one day. After all, a bankruptcy can stay on your credit score for up to 10 years. So don't visit a nonprofit credit counseling service for help. Don't work out a budget to help you manage your money better. Don't cut up your credit cards or freeze them in blocks of ice. And don't take any baby steps toward paying off your debts. Just resign yourself to a life on the streets - it will be harder for your creditors to track you down if you don't have a job, an address or a phone number. Don't believe anyone who tells you that you can turn your situation around in a year or two if you're motivated enough.

What Won't Affect Your Score

While you're hard at work destroying your credit and ensuring that your life will one day revolve completely around clawing your way out of debt, please keep in mind that there are a few destructive behaviors that won't have any impact on your credit score.

Unless you do it so often that your bank sends your account to collections, overdrawing your checking account won't have any effect on your credit score (though it will be very expensive). Getting divorced, in and of itself, will not affect your credit score, so don't think that stepping out on your spouse will get you any closer to a 300. Losing your job won't directly impact your score, either, nor will receiving unemployment checks or signing up for food stamps.

Credit bureaus don't care if you're on public assistance, and they don't care if you have a job — they're only interested in whether and when you pay your bills, not how you derive the means to pay for them. But hey — why stop at just destroying your credit when you could destroy your entire life?

The Bottom Line

Please don't follow the tongue-in-cheek tips in this article - we really don't want to see you ruin your finances, your relationships or your sanity.
___

We've reprinted this excellent article from Yahoo Finance.

The American Dream... deferred?

Do you dream of owning a home but your credit is not good enough to qualify for a loan?

You are not alone. Millions of Americans have credit scores that have been decimated by medical bills, credit card overspending, unforeseen emergencies and more.

Does that mean you have to wait to own a home?

Not anymore. Even as banks get more strict about their lending rules and fewer and fewer loans are approved, savvy buyers are learning there are more creative ways to buy a home besides just qualifying for a bank loan.

One of the best ways to buy a home and start building equity NOW is by renting to own.

You are probably renting already. Imagine if half or even all of your rent was going directly to pay for the purchase of your home! You can qualify for that as a rent-to-own tenant, even if your credit score is low.

There are three major factors that determine if you can rent to own:

1) Can you pay your rent ON TIME, EVERY MONTH in order to earn your rent credit of 50% to 100% towards your purchase price?

2) Can you handle your own REPAIRS AND MAINTENANCE on the home just as a fully vested homeowner would?

3) Can you pay 3 to 10% option consideration up front to move into your dream home?

If you answered yes to these three questions, then you have taken the first important step to becoming a homeowner.

Don't let the economy, your friends or the media tell you that you can't have the American Dream, or that you have to wait. There is no need to defer your dreams; you can buy now!

At Happy Home Solutions, we help renters stop throwing their money away on rent by moving them into rent-to-own homes.

We just helped a couple from Cicero, Illinois move from a third-story walk-up apartment to a beautiful, 3 bedroom, fully rehabbed house in Waukegan, Illinois for a payment that is LESS EACH MONTH than they were paying in rent!

In my next post, I will provide a link of Marlena describing how excited she is to be purchasing her first home.

Let us help you be our next success story.

Contact Diane St. James at dianej-stjames@usa.net or 630-780-HOME to take that first step toward YOUR American Dream.