tag:blogger.com,1999:blog-20043348781533828632024-02-06T21:19:03.791-06:00the wasserblawgInformation for Buyers and Sellers of Chicago Area Residential Real Estate. Learn more at mhwasserman.com. mhwpchttp://www.blogger.com/profile/07730709762735532466noreply@blogger.comBlogger307125tag:blogger.com,1999:blog-2004334878153382863.post-24136376171810332622022-11-13T18:19:00.000-06:002022-11-13T18:19:26.079-06:00So.... about the blawg<p>Nov. 2022</p><p>Hello Dear Reader.</p><p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjUU__5CePn3uLFvCDEXPmJLQXemrMBcstSY2D3Vz3qoRP2Kcy7X_DoftJ87AH9zRjXVaWZ5RjFYatQtZgUzasViC5GxGenvcdfxXQHR5rVjB0u-izMdKjVarmhUX9-p1L0Zf7x2dIA3pG9MMnTLrI_OHOnXC1BuJ4FScVOsZ5f3ZTinu4Ir9MOsPONfg/s640/mike%20at%20sunset%20220906.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="360" data-original-width="640" height="180" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjUU__5CePn3uLFvCDEXPmJLQXemrMBcstSY2D3Vz3qoRP2Kcy7X_DoftJ87AH9zRjXVaWZ5RjFYatQtZgUzasViC5GxGenvcdfxXQHR5rVjB0u-izMdKjVarmhUX9-p1L0Zf7x2dIA3pG9MMnTLrI_OHOnXC1BuJ4FScVOsZ5f3ZTinu4Ir9MOsPONfg/s320/mike%20at%20sunset%20220906.jpg" width="320" /></a></div>I started blogging on this site 15 years ago. <br /><p></p><p>Crazy right?</p><p>May or may not Chicago's longest-running blog about real estate law. I think so, but who knows,</p><p>Whether it is or isn't doesn't, of course, really matter. </p><p>Either way, it's been a blast. </p><p>But things change. We've pulled up the tent stakes here and are relocated on other platforms.</p><p>Want to follow along?</p><p>Join us on <a href="https://wasserlaw.net/wasserblawg">the mothership</a></p><p>I'm also writing on <a href="https://www.linkedin.com/in/michaelhwasserman/">LinkedIn</a></p><p>Thanks for everything.</p><div class="blogger-post-footer">
contact michael@mhwasserman.com
visit www.mhwasserman.com
</div>Michael H. Wassermanhttp://www.blogger.com/profile/17542282494747756366noreply@blogger.com0tag:blogger.com,1999:blog-2004334878153382863.post-34154034193475601302021-12-06T12:26:00.006-06:002021-12-06T12:27:24.549-06:00The New FNMA Guideline Everyone Should be Aware of Before Buying a Condo <h4 style="text-align: left;">by Michael H Wasserman</h4><p class="MsoNormal">Tragedy in Sunrise, Florida and now <a href=" https://www.jsonline.com/story/communities/waukesha/2021/12/03/waukesha-condo-evacuation-leaves-80-residents-without-home/8851304002/">Waukesha, Wisconsin</a>. <o:p></o:p></p><p class="MsoNormal">Authorities ordered the emergency evacuation of another condominium
building late last week. Deemed to be at risk of imminent collapse. Structural
and life safety problems noted after a wind storm sheared some exterior elements
off a couple of years ago. Led to a balcony reconstruction project, which in
turn revealed far worse structural deterioration. Of a building (only) 50 years
old. 80 or so people forced to leave their homes with no advance warning. <o:p></o:p></p><p class="MsoNormal">Fannie Mae’s October lender letter tightened lending guidelines
in buildings with too much deferred maintenance. Inadequate reserves. Associations
lacking the political will to take on the challenges of funding and orchestrating
necessary structural and safety repairs. <o:p></o:p></p><p class="MsoNormal">Whether they are brought to light by municipal inspections
or the associations own investigations or capital reserve studies. Fannie will
not loan money into buildings with structural defects or deficiencies until they
are made habitable. Not until the work is complete. And paid for. <o:p></o:p></p><p class="MsoNormal">Fannie Mae is calling on its lenders and their appraisers to
ferret these buildings out. To shut off the money supply for loans into those
associations. Once problems are identified, no acquisition loans. Not even loans
already in the pipeline. No re-fi’s. Owners will be “stuck” with the inevitable
special assessments and will have fewer avenues to raise funds by selling or pulling
out home equity. <o:p></o:p></p><p class="MsoNormal">Brokers – how will this impact you in the coming year?<o:p></o:p></p><p>
</p><p class="MsoNormal">Are you going to invest time and resources into buildings that
are dealing with deferred maintenance or pending capital improvement projects?
Do you intend to pre-screen for problems before showing condo buildings to your
prospective buyers? Will a building’s overall health deter you from taking a new
listing? <o:p></o:p></p><p><br /></p><div class="blogger-post-footer">
contact michael@mhwasserman.com
visit www.mhwasserman.com
</div>Michael H. Wassermanhttp://www.blogger.com/profile/17542282494747756366noreply@blogger.com0tag:blogger.com,1999:blog-2004334878153382863.post-51544456787105954242021-11-21T14:57:00.002-06:002021-11-21T14:57:16.276-06:00Six Ways That Unsolicited Purchase Offer Might Not Be As Great A Deal As You Hoped For <h4 style="text-align: left;">by Michael H. Wasserman</h4><p>Flippers. Wholesalers. I-buying fin-tech
disrupters. Publicly traded REITS. Private equity firms. Boot-strap investors.
All out on the prowl for opportunities.</p><p class="MsoNormal" style="margin-bottom: 0in;"><o:p></o:p></p>
<p class="MsoNormal" style="margin-bottom: 0in;">It's never been easier for Chicago area owners to sell homes directly. But should you? What can possibly go wrong? Read on to learn the
unpleasant truth, and the things you can do to make the most of these no-broker
deals.</p><p class="MsoNormal" style="margin-bottom: 0in;"><o:p></o:p></p>
<p class="MsoNormal" style="margin-bottom: 0in;">It may start with a series of unsolicited
offers. Out of the blue. First a letter. Then another. (Look – this one's on yellow
stationary!) A note left in the mailbox. A knock at the door. Maybe the allure
of those ads on tv and the net. That billboard you keep driving past. Same
deal.</p><p class="MsoNormal" style="margin-bottom: 0in;"><o:p></o:p></p>
<p class="MsoNormal" style="margin-bottom: 0in;">"We'd like to buy your house.
Just us. No middlemen. No realtors. You won't have to pay anyone's commission. We
can pay all cash. Close in two weeks if you want. What do say"?</p><p class="MsoNormal" style="margin-bottom: 0in;"><o:p></o:p></p>
<p class="MsoNormal" style="margin-bottom: 0in;">The money sure would be nice. More
house than you need. Getting harder to keep it up. Money is tight. Need a fresh
start. Almost seems too good to be true. Or maybe luck is smiling down,
finally.</p><p class="MsoNormal" style="margin-bottom: 0in;"><o:p></o:p></p>
<p class="MsoNormal" style="margin-bottom: 0in;">"We'll take care of
everything". (Might even pay all the closing costs). "You can live in
the house a bit if you need to". "You can leave whatever you don’t want
to pack out".</p><p class="MsoNormal" style="margin-bottom: 0in;"><o:p></o:p></p>
<p class="MsoNormal" style="margin-bottom: 0in;">The pitch is pretty sweet. So
what's the problem? Wait until you see the purchase contracts. As real estate lawyers who help sellers sell, we have worked on scores of these transactions and have reviewed a good many of the buyer-written, non-standard contracts used. In our experience, here are six of the biggest problems or risks that sellers in these deals face: </p><p class="MsoNormal" style="margin-bottom: 0in;"></p><ul style="text-align: left;"><li><span style="text-indent: -0.25in;">The sale price is wrong. If you weren’t planning
on selling, odds are you've done little or no research and may not know what
your property is really worth. Offers are almost always below market. They know
better and they are counting on it.</span></li><li>Inspection contingencies without deadlines. That
aren’t restricted to major defects or deficiencies. Buyers using standard
contracts get only so long to do an inspection and make a decision. Standard
contracts limit the scope of what findings are objectionable. These buyers can
cancel at any point along the way for any reason, simply by involving this
clause.</li><li>Unwanted house guests. The buyer may want to start
marketing the property to prospective tenants, other investors or end-buyers from
the moment the contract is signed. You may have to let untold numbers of strangers
parade thru your home at the buyer's discretion.</li><li>You closing date may be an illusion. Fluid at
best. There may not even be one. The buyer will close when the buyer wants to
close (if they want to close). They may delay. Without penalty. Without
explanation. Indefinitely. If they don’t find an end-buyer, they may never.</li><li>If you change your mind, they will sue you for
damages or to force the sale. At least they will have the right. But if they
default, you will have little or no recourse at all. Damages limited to the earnest
money. And there is never enough of it. Maybe $100. Maybe $500. If tendered at
all.</li><li>Worst of all? No attorney review! Sure, we can
point these (and other) issues out easily enough. But once the contract is
signed. The deal is the deal. Little can be done. There is no leverage. More
often than not, when a prospective seller shows me this contract. it is already
too late.</li></ul><p></p><p class="MsoListParagraphCxSpMiddle" style="margin-bottom: 0in; mso-add-space: auto; mso-list: l0 level1 lfo1; text-indent: -.25in;"><o:p></o:p></p>
<p class="MsoListParagraphCxSpLast" style="margin-bottom: 0in; mso-add-space: auto;">As tempting as a non-traditional
deal may be, home-owners must take extra care to avoid these common pitfalls.
They are easily avoided.</p><p class="MsoNormal" style="margin-bottom: 0in;"><o:p></o:p></p>
<p class="MsoNormal" style="margin-bottom: 0in;">Working with a competent and well
qualified realtor can help.</p><p class="MsoNormal" style="margin-bottom: 0in;"><o:p></o:p></p>
<p class="MsoNormal" style="margin-bottom: 0in;">Consulting an experienced real
estate lawyer <i>before</i> signing anything too. Some of these terms can be negotiated. Softened to equalize the balance of power. To protect a sellers rights in an important transaction of this sort.</p><p class="MsoNormal" style="margin-bottom: 0in;"><o:p></o:p></p>
<p class="MsoNormal" style="margin-bottom: 0in;">Are you thinking of selling to an I-buyer or an investor? Let us know. We may be able to help.</p><div class="blogger-post-footer">
contact michael@mhwasserman.com
visit www.mhwasserman.com
</div>Michael H. Wassermanhttp://www.blogger.com/profile/17542282494747756366noreply@blogger.com0Chicago, IL, USA41.8781136 -87.629798213.567879763821153 -122.7860482 70.188347436178844 -52.473548199999996tag:blogger.com,1999:blog-2004334878153382863.post-77705160803883831372021-08-24T13:25:00.002-05:002021-08-24T13:25:29.932-05:00They Asked for What?<p> by Michael H. Wasserman</p><p>A pervasive problem for some in contemporary society splits
us into two camps. One particular segment of the community. They may be your friends,
your neighbors, your co-parishioners. They are fully aware of the environment
we live in. They read the same things you do. They receive the same guidances we
all do. They take wildly different views of what those writings mean. Who they apply
to. They are not easily persuaded by reason or the advice of experts. While
they acknowledge legal obligations they still want to “do their own thing,” often
to the detriment of others they engage with. </p><p></p><p class="MsoNormal"><o:p></o:p></p>
<p class="MsoNormal">You know who I am talking about. Unrestrained buyers who ask
for the sun, the moon and all the stars based on property inspections without
regard to the terms of their inspection contingency or as-is contract. <o:p></o:p></p>
<p class="MsoNormal">Sellers expect buyers to abide by inspection contingency terms
of the contract they (the buyers) offered. If the deal is “as is,” sellers
expect not to hear a thing. If there are “asks” they better be significant
problems. Our contracts are all pretty clear about what is and is not allowed. <o:p></o:p></p>
<p class="MsoNormal">But as one drafter on the 7.0 committee acknowledges “the
heart wants what it wants.” If the buyer wants something fixed, it matters not what
the contract says. Whether it is a “major material defect” or “safety issue.” That
buyers promised they wouldn’t ask for anything. That the seller does not want
to be “nickled and dimed.” These buyers are going to ask for whatever they want
to ask for. <o:p></o:p></p>
<p class="MsoNormal">Some professionals on the other sides of our deals make the
problem worse, reimagining “as is” clauses to allow asks for “major material
defects and safety issues.” Distorting understanding of the baseline contingency
clauses to have no limitations at all. These enablers inject a viral disregard
of contract terms into the community. Encouraging buyers to ask for anything
they desire and then blindly relaying whatever requests clients direct them to
make. They use up all of our resources and expose us all to run-away
negotiations. Not only on the deal at hand. Super-spreaders of mis-information encouraging
others to behave badly too.<o:p></o:p></p>
<p class="MsoNormal">We choose a different course. We – and our broker partners -
advise our clients about the contract limitations. We encourage clients to toe
the line. Not all will be convinced here. In the end, the buyer decides whether
or not a deal makes financial sense. If it does not, we may have no choice but
to ask for concessions. Sometimes we really do need to ask for - or to grant otherwise
questionable concessions to keep a deal moving forward. But we stand behind the
spirit and intent of written contract contingencies and encourage our colleagues
to do so too.<o:p></o:p></p><br /><p></p><div class="blogger-post-footer">
contact michael@mhwasserman.com
visit www.mhwasserman.com
</div>Michael H. Wassermanhttp://www.blogger.com/profile/17542282494747756366noreply@blogger.com0tag:blogger.com,1999:blog-2004334878153382863.post-36758197252711765432021-07-21T10:01:00.009-05:002021-07-21T10:19:08.697-05:00Who's in Charge of Fixing Miami's Aging Condos? (and what about here in Chicago?)<h4 style="text-align: left;">by Michael H. Wasserman </h4><p><span style="background-color: #fcfcfb; color: #241f21; font-family: "Source Sans Pro", "Helvetica Neue", Helvetica, Arial; font-size: 16px; white-space: pre-wrap;">An interesting 20 minute podcast </span><a href=" https://on.wsj.com/3xXAcJx" rel="nofollow" style="font-family: "Source Sans Pro", "Helvetica Neue", Helvetica, Arial; font-size: 16px; white-space: pre-wrap;">here</a><span style="color: #241f21; font-family: Source Sans Pro, Helvetica Neue, Helvetica, Arial;"><span style="background-color: #fcfcfb; white-space: pre-wrap;">.</span></span></p><p><span style="background-color: #fcfcfb; color: #241f21; font-family: "Source Sans Pro", "Helvetica Neue", Helvetica, Arial; font-size: 16px; white-space: pre-wrap;">The disaster in Miami calls to light a critical challenge for all condo owners, including owners here in Chicago. Who decides if repairs and who pays? Hint: the owners.</span></p><div data-block="true" data-editor="16ipu" data-offset-key="76cqb-0-0" style="background-color: #fcfcfb; color: #241f21; font-family: "Source Sans Pro", "Helvetica Neue", Helvetica, Arial; font-size: 16px; margin: 0px; padding: 0px; white-space: pre-wrap;"><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="76cqb-0-0" style="direction: ltr; margin: 0px; padding: 0px; position: relative;">These are two really tough questions to answer. Particularly because condos are for the most part run by untrained volunteers. Few have experience apartment buildings. These volunteers have to not only appreciate the need for action but must then convince their co-owners that the necessary costs must be paid. </div><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="76cqb-0-0" style="direction: ltr; margin: 0px; padding: 0px; position: relative;"><br /></div><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="76cqb-0-0" style="direction: ltr; margin: 0px; padding: 0px; position: relative;">Think these sorts of deferred (ignored) maintenance problems don't effect us localy? Consider the deconversions of Keneally Square or River City back in 2017 & 2018. The over-whelming costs of long deferred maintenance forced owners to sell out at a loss. Thankfully, no loss of life, but still disastrous outcomes.</div><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="76cqb-0-0" style="direction: ltr; margin: 0px; padding: 0px; position: relative;"><br /></div><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="76cqb-0-0" style="direction: ltr; margin: 0px; padding: 0px; position: relative;">This is one of many reasons why Buyers should inspect condo common elements, financial records and meeting minutes. </div><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="76cqb-0-0" style="direction: ltr; margin: 0px; padding: 0px; position: relative;"><br /></div><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="76cqb-0-0" style="direction: ltr; margin: 0px; padding: 0px; position: relative;">Understanding condo association's reserves (if any), capital maintenance schedules (if any). and the community's posture towards making special assessments and capital improvements is an important part of the buying process. </div></div><div class="blogger-post-footer">
contact michael@mhwasserman.com
visit www.mhwasserman.com
</div>Michael H. Wassermanhttp://www.blogger.com/profile/17542282494747756366noreply@blogger.com0tag:blogger.com,1999:blog-2004334878153382863.post-81723034250331789672021-07-20T11:58:00.005-05:002021-07-20T11:58:54.283-05:00Ink Color Matters<h4 style="text-align: left;">by Michael H. Wasserman </h4><p><span style="background-color: white; color: rgba(0, 0, 0, 0.9); font-family: -apple-system, system-ui, BlinkMacSystemFont, "Segoe UI", Roboto, "Helvetica Neue", "Fira Sans", Ubuntu, Oxygen, "Oxygen Sans", Cantarell, "Droid Sans", "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol", "Lucida Grande", Helvetica, Arial, sans-serif; font-size: 16px; white-space: pre-wrap;">It turns out that ink color really does matter. At least it does for Kane County recordings. This alert from one of our favorite title companies today:</span></p><p style="background: rgb(255, 255, 255); border: 0px; box-sizing: inherit; color: rgba(0, 0, 0, 0.9); counter-reset: list-1 0 list-2 0 list-3 0 list-4 0 list-5 0 list-6 0 list-7 0 list-8 0 list-9 0; cursor: text; font-family: -apple-system, system-ui, BlinkMacSystemFont, "Segoe UI", Roboto, "Helvetica Neue", "Fira Sans", Ubuntu, Oxygen, "Oxygen Sans", Cantarell, "Droid Sans", "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol", "Lucida Grande", Helvetica, Arial, sans-serif; font-size: 16px; line-height: 1.5; margin: 0px; padding: 0px; vertical-align: baseline; white-space: pre-wrap;"> </p><p style="background: rgb(255, 255, 255); border: 0px; box-sizing: inherit; color: rgba(0, 0, 0, 0.9); counter-reset: list-1 0 list-2 0 list-3 0 list-4 0 list-5 0 list-6 0 list-7 0 list-8 0 list-9 0; cursor: text; font-family: -apple-system, system-ui, BlinkMacSystemFont, "Segoe UI", Roboto, "Helvetica Neue", "Fira Sans", Ubuntu, Oxygen, "Oxygen Sans", Cantarell, "Droid Sans", "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol", "Lucida Grande", Helvetica, Arial, sans-serif; font-size: 16px; line-height: 1.5; margin: 0px; padding: 0px; vertical-align: baseline; white-space: pre-wrap;"></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj69VOkX9UYxWylmW5AIDkGZHlXt64h8G2-o-colKCVr0KQZipluOi4wGFllZUI3GgTuiCTb6zL7pyFBimxpUho02d2QAvcOVSliQXnoZR9dj7qp4hqAefghWHm7kqas1uuC-jww3vzOyRg/s300/b9630b005544739dfcc7c60178528a3a.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="208" data-original-width="300" height="139" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj69VOkX9UYxWylmW5AIDkGZHlXt64h8G2-o-colKCVr0KQZipluOi4wGFllZUI3GgTuiCTb6zL7pyFBimxpUho02d2QAvcOVSliQXnoZR9dj7qp4hqAefghWHm7kqas1uuC-jww3vzOyRg/w200-h139/b9630b005544739dfcc7c60178528a3a.jpg" width="200" /></a></div>**It has just come to our attention that Kane County will charge an additional $22 if deeds are signed in blue ink.** <p></p><p style="background: rgb(255, 255, 255); border: 0px; box-sizing: inherit; color: rgba(0, 0, 0, 0.9); counter-reset: list-1 0 list-2 0 list-3 0 list-4 0 list-5 0 list-6 0 list-7 0 list-8 0 list-9 0; cursor: text; font-family: -apple-system, system-ui, BlinkMacSystemFont, "Segoe UI", Roboto, "Helvetica Neue", "Fira Sans", Ubuntu, Oxygen, "Oxygen Sans", Cantarell, "Droid Sans", "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol", "Lucida Grande", Helvetica, Arial, sans-serif; font-size: 16px; line-height: 1.5; margin: 0px; padding: 0px; vertical-align: baseline; white-space: pre-wrap;"><br style="box-sizing: inherit;" /></p><p style="background: rgb(255, 255, 255); border: 0px; box-sizing: inherit; color: rgba(0, 0, 0, 0.9); counter-reset: list-1 0 list-2 0 list-3 0 list-4 0 list-5 0 list-6 0 list-7 0 list-8 0 list-9 0; cursor: text; font-family: -apple-system, system-ui, BlinkMacSystemFont, "Segoe UI", Roboto, "Helvetica Neue", "Fira Sans", Ubuntu, Oxygen, "Oxygen Sans", Cantarell, "Droid Sans", "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol", "Lucida Grande", Helvetica, Arial, sans-serif; font-size: 16px; line-height: 1.5; margin: 0px; padding: 0px; vertical-align: baseline; white-space: pre-wrap;">I assume that this policy would also apply to deeds signed in red, green, purple or whatever <br />too.</p><p style="background: rgb(255, 255, 255); border: 0px; box-sizing: inherit; color: rgba(0, 0, 0, 0.9); counter-reset: list-1 0 list-2 0 list-3 0 list-4 0 list-5 0 list-6 0 list-7 0 list-8 0 list-9 0; cursor: text; font-family: -apple-system, system-ui, BlinkMacSystemFont, "Segoe UI", Roboto, "Helvetica Neue", "Fira Sans", Ubuntu, Oxygen, "Oxygen Sans", Cantarell, "Droid Sans", "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol", "Lucida Grande", Helvetica, Arial, sans-serif; font-size: 16px; line-height: 1.5; margin: 0px; padding: 0px; vertical-align: baseline; white-space: pre-wrap;"><br style="box-sizing: inherit;" /></p><p style="background: rgb(255, 255, 255); border: 0px; box-sizing: inherit; color: rgba(0, 0, 0, 0.9); counter-reset: list-1 0 list-2 0 list-3 0 list-4 0 list-5 0 list-6 0 list-7 0 list-8 0 list-9 0; cursor: text; font-family: -apple-system, system-ui, BlinkMacSystemFont, "Segoe UI", Roboto, "Helvetica Neue", "Fira Sans", Ubuntu, Oxygen, "Oxygen Sans", Cantarell, "Droid Sans", "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol", "Lucida Grande", Helvetica, Arial, sans-serif; font-size: 16px; line-height: 1.5; margin: 0px; padding: 0px; vertical-align: baseline; white-space: pre-wrap;">This seemed odd. Why would the County single out blue inked deeds and but not mortgages or other documents?</p><p style="background: rgb(255, 255, 255); border: 0px; box-sizing: inherit; color: rgba(0, 0, 0, 0.9); counter-reset: list-1 0 list-2 0 list-3 0 list-4 0 list-5 0 list-6 0 list-7 0 list-8 0 list-9 0; cursor: text; font-family: -apple-system, system-ui, BlinkMacSystemFont, "Segoe UI", Roboto, "Helvetica Neue", "Fira Sans", Ubuntu, Oxygen, "Oxygen Sans", Cantarell, "Droid Sans", "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol", "Lucida Grande", Helvetica, Arial, sans-serif; font-size: 16px; line-height: 1.5; margin: 0px; padding: 0px; vertical-align: baseline; white-space: pre-wrap;"><br style="box-sizing: inherit;" /></p><p style="background: rgb(255, 255, 255); border: 0px; box-sizing: inherit; color: rgba(0, 0, 0, 0.9); counter-reset: list-1 0 list-2 0 list-3 0 list-4 0 list-5 0 list-6 0 list-7 0 list-8 0 list-9 0; cursor: text; font-family: -apple-system, system-ui, BlinkMacSystemFont, "Segoe UI", Roboto, "Helvetica Neue", "Fira Sans", Ubuntu, Oxygen, "Oxygen Sans", Cantarell, "Droid Sans", "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol", "Lucida Grande", Helvetica, Arial, sans-serif; font-size: 16px; line-height: 1.5; margin: 0px; padding: 0px; vertical-align: baseline; white-space: pre-wrap;">So i called the recorder to find out. Perhaps a slight mis-understanding here. Blue ink used in signatures and dates should be OK. Both for grantors and notaries. Its those corrections of scrivener's errors. Language adding vesting information. "Mail-to's" and the like. Making those marks in blue is going to cost you. Or the Buyer. In Kane County those markings render the document non-standard and will incur a recording surcharge. </p><p style="background: rgb(255, 255, 255); border: 0px; box-sizing: inherit; color: rgba(0, 0, 0, 0.9); counter-reset: list-1 0 list-2 0 list-3 0 list-4 0 list-5 0 list-6 0 list-7 0 list-8 0 list-9 0; cursor: text; font-family: -apple-system, system-ui, BlinkMacSystemFont, "Segoe UI", Roboto, "Helvetica Neue", "Fira Sans", Ubuntu, Oxygen, "Oxygen Sans", Cantarell, "Droid Sans", "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol", "Lucida Grande", Helvetica, Arial, sans-serif; font-size: 16px; line-height: 1.5; margin: 0px; padding: 0px; vertical-align: baseline; white-space: pre-wrap;"> </p><p style="background: rgb(255, 255, 255); border: 0px; box-sizing: inherit; color: rgba(0, 0, 0, 0.9); counter-reset: list-1 0 list-2 0 list-3 0 list-4 0 list-5 0 list-6 0 list-7 0 list-8 0 list-9 0; cursor: text; font-family: -apple-system, system-ui, BlinkMacSystemFont, "Segoe UI", Roboto, "Helvetica Neue", "Fira Sans", Ubuntu, Oxygen, "Oxygen Sans", Cantarell, "Droid Sans", "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol", "Lucida Grande", Helvetica, Arial, sans-serif; font-size: 16px; line-height: 1.5; margin: 0px; padding: 0px; vertical-align: baseline; white-space: pre-wrap;">Blue ink or black. Just one of those eternal questions for practitioners. Our clients who work in health care settings want only to sign in black. Black ink scans and copies better. Blue may appear very lightly or not at all. They are taught to make all hand-written medical records in black. </p><p style="background: rgb(255, 255, 255); border: 0px; box-sizing: inherit; color: rgba(0, 0, 0, 0.9); counter-reset: list-1 0 list-2 0 list-3 0 list-4 0 list-5 0 list-6 0 list-7 0 list-8 0 list-9 0; cursor: text; font-family: -apple-system, system-ui, BlinkMacSystemFont, "Segoe UI", Roboto, "Helvetica Neue", "Fira Sans", Ubuntu, Oxygen, "Oxygen Sans", Cantarell, "Droid Sans", "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol", "Lucida Grande", Helvetica, Arial, sans-serif; font-size: 16px; line-height: 1.5; margin: 0px; padding: 0px; vertical-align: baseline; white-space: pre-wrap;"><br style="box-sizing: inherit;" /></p><p style="background: rgb(255, 255, 255); border: 0px; box-sizing: inherit; color: rgba(0, 0, 0, 0.9); counter-reset: list-1 0 list-2 0 list-3 0 list-4 0 list-5 0 list-6 0 list-7 0 list-8 0 list-9 0; cursor: text; font-family: -apple-system, system-ui, BlinkMacSystemFont, "Segoe UI", Roboto, "Helvetica Neue", "Fira Sans", Ubuntu, Oxygen, "Oxygen Sans", Cantarell, "Droid Sans", "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol", "Lucida Grande", Helvetica, Arial, sans-serif; font-size: 16px; line-height: 1.5; margin: 0px; padding: 0px; vertical-align: baseline; white-space: pre-wrap;">But lenders ask borrowers to sign in blue. Blue ink signatures stand out from the black text that surrounds them. Easier to spot. (But for color laser printers) easier to find the original - look for the one with the blue ink. </p><p style="background: rgb(255, 255, 255); border: 0px; box-sizing: inherit; color: rgba(0, 0, 0, 0.9); counter-reset: list-1 0 list-2 0 list-3 0 list-4 0 list-5 0 list-6 0 list-7 0 list-8 0 list-9 0; cursor: text; font-family: -apple-system, system-ui, BlinkMacSystemFont, "Segoe UI", Roboto, "Helvetica Neue", "Fira Sans", Ubuntu, Oxygen, "Oxygen Sans", Cantarell, "Droid Sans", "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol", "Lucida Grande", Helvetica, Arial, sans-serif; font-size: 16px; line-height: 1.5; margin: 0px; padding: 0px; vertical-align: baseline; white-space: pre-wrap;"><br style="box-sizing: inherit;" /></p><p style="background: rgb(255, 255, 255); border: 0px; box-sizing: inherit; color: rgba(0, 0, 0, 0.9); counter-reset: list-1 0 list-2 0 list-3 0 list-4 0 list-5 0 list-6 0 list-7 0 list-8 0 list-9 0; cursor: text; font-family: -apple-system, system-ui, BlinkMacSystemFont, "Segoe UI", Roboto, "Helvetica Neue", "Fira Sans", Ubuntu, Oxygen, "Oxygen Sans", Cantarell, "Droid Sans", "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol", "Lucida Grande", Helvetica, Arial, sans-serif; font-size: 16px; line-height: 1.5; margin: 0px; padding: 0px; vertical-align: baseline; white-space: pre-wrap;">Ultimately Sellers can continue to sign deeds and other conveyance documents in whichever color they prefer. But have mercy on the buyer's attorney or closer who tries to correct a deed using the wrong color. Going to have to start taking both black and blue ink pens to closings.... or maybe one of these babies.</p><div class="blogger-post-footer">
contact michael@mhwasserman.com
visit www.mhwasserman.com
</div>Michael H. Wassermanhttp://www.blogger.com/profile/17542282494747756366noreply@blogger.com0tag:blogger.com,1999:blog-2004334878153382863.post-86255057851612752202021-07-13T11:42:00.004-05:002021-07-13T18:20:01.799-05:00FOE FOILS FOSSIL-HUNTER'S FLOAT TRIPS <p></p><h3 style="text-align: left;"> </h3><p></p><h2 style="mso-list: none; text-indent: 0in;">Court Clobbers Kayaker. Concludes
Competitor's Contiguous Keep Cannot be Crossed<o:p></o:p></h2><h4 style="text-align: left;">by Michael H. Wasserman</h4><p class="MsoNormal">The sun sets majestically. You take another sip of lemonade.
Your attention focuses on the gentle wind blowing thru the trees. The noise of water
coursing along river at the far end of the property. The blissful payoff for a
long long week at work. The calm evaporates when you open the letter – a cease and desist order from a neighbor’s lawyer. You are directed to stay off their property.
This puzzles you. You’ve been here three months and never once set foot on
their land, barely even know which place is theirs. You haven’t been to <i>any</i>
neighbors yet. Just the new place and the river. And this, my friend was your downfall.
The neighbor does not want you to boat past his place.</p><p class="MsoNormal"></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjuYwWtVszXr8DF7puHfNIhyAYVVb6-LlFs3tLkPqSLfXiibggHN1jHHuWrjCgr-d-GZ1VeMCV3DUgauFY4RYC05Lk3TUVLEBDpSveOyjS0ygRz0FftyLFgEATqNP47b8HQsTDnaXUhbCB8/s1200/kayak.jpg.jpg" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="800" data-original-width="1200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjuYwWtVszXr8DF7puHfNIhyAYVVb6-LlFs3tLkPqSLfXiibggHN1jHHuWrjCgr-d-GZ1VeMCV3DUgauFY4RYC05Lk3TUVLEBDpSveOyjS0ygRz0FftyLFgEATqNP47b8HQsTDnaXUhbCB8/s320/kayak.jpg.jpg" width="320" /></a></div>Turns out, owning riverfront property does not necessarily confer
access right upstream or down. The neighbors might have a thing or two to say
about it too. In these circumstances, absent permission, taking your new paddle
boat downstream into town might be a trespass.<p></p><p class="MsoNormal">Adam Holm learned this lesson the hard way, in a decision
handed down by the Illinois Appellate Court last month.</p><div class="separator" style="clear: both; text-align: center;"><p class="MsoNormal" style="text-align: left;"><o:p></o:p></p>
<h3 style="text-align: left;">WHAT HAPPENED?<o:p></o:p></h3>
<p class="MsoNormal" style="text-align: left;"><o:p> </o:p>The Mazon River is known for large deposits of fossils thought
to be more than 300 million years old. They have attracted much attention in
fossil hunting circles for going back to the civil war era. The Holms own two
pieces of property along the Mazon in Grundy County. One landlocked, that is,
there is no road access to it and one with road access. The Holms engaged in a
fossil hunting business using both of parcels of land. They would drop kayaks
in the river from their road-accessible lot, paddle down to the inaccessible
lot and then exit further along at the Pine Bluff Road Bridge. Peter Kodat, who
also runs a fossil hunting business owns another piece of property on the Mazon
somewhere along this portion of the river. He organized a couple of other
neighbors to join him and sign written trespass notices prohibiting the Holms
from kayaking on their portions of the river. At one point Kodat went so far as
to have the Grundy County Sheriffs arrest Holms for trespass. Holms sued them
all for the right to access the whole river, free of trespass. Both the trial
court and the appellate court ruled against him. Their kayaking actions were indeed
trespasses.</p><p class="MsoNormal" style="text-align: left;"><o:p></o:p></p>
<h3 style="text-align: left;">SO, SO, HOW DOES SOMEONE OWNS A RIVER (OR THE RIGHT
TO USE IT)?<o:p></o:p></h3>
<p class="MsoNormal" style="text-align: left;">Generally, ownership and usage of bodies of water fall into
the realm of <b><u>Riparian Rights.</u></b> Riparian rights extend to all
water-ways, rivers, lakes and oceans. The underlying principals are found in
common law created long ago. Many of the cases relied on for precent are from at
best the earliest decades of the 20<sup>th</sup> century. Notably, this decision
is said to be the first riparian rights opinion this century.</p><p class="MsoNormal" style="text-align: left;"><o:p></o:p></p>
<p class="MsoNormal" style="text-align: left;">In Illinois, the general rule is that an owners access to
land bounded by a stream extends to the mid-point of the riverbed and along the
entire shoreline of their property. The public however is given a navigation
easement in waters which are <u>navigable in fact.</u> <o:p></o:p></p>
<p class="MsoNormal" style="text-align: left;">A river or stream is navigable in fact if is “of sufficient
depth to afford a channel for use for commerce” by customary modes of
transportation. A river is not navigable even if that streams is large enough
for rowboats or small launches! <o:p></o:p></p>
<p class="MsoNormal" style="text-align: left;">All parties to the case agreed that Mazon River is non-navigable.
Accordingly, there is no public easement for passage. Kodat and the other neighbors
each owned to the mid-point of the river and each could individually or
collectively bar the Holms from using their parts of the river. <o:p></o:p></p>
<h3 style="text-align: left;">FINAL THOUGHTS:</h3>
<p class="MsoNormal" style="text-align: left;">Riparian rights are usually come into play more in agricultural
and industrial contexts relating to the use or diversion of water. But, as more
and more of us – and our clients – become interested in the recreational use of
waterways and rural living, these issues will come up more and more frequently.</p><p class="MsoNormal" style="text-align: left;"><o:p></o:p></p>
<p class="MsoNormal" style="text-align: left;">Anyone thinking of buying land that has a water feature –
and the brokers helping identify possible parcels should be aware of this case.
Not all waterways include access. Not all owners get access to the entire
waterway. <o:p></o:p></p>
<span face=""Trebuchet MS",sans-serif" style="font-size: 11pt; line-height: 107%; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-fareast; mso-hansi-theme-font: minor-latin;"><p style="text-align: left;"><span style="font-size: 11pt;">Understanding
whether a river or stream is navigable or not might save you – or your client –
from the ruin of a perfectly good lemonade or sunset.</span></p></span></div><p></p><div class="separator" style="clear: both; text-align: center;"><br /></div><div class="separator" style="clear: both; text-align: center;"><br /></div><br /><p></p><div class="blogger-post-footer">
contact michael@mhwasserman.com
visit www.mhwasserman.com
</div>Michael H. Wassermanhttp://www.blogger.com/profile/17542282494747756366noreply@blogger.com0tag:blogger.com,1999:blog-2004334878153382863.post-63041256066625290182021-07-01T07:58:00.001-05:002021-07-01T07:58:43.261-05:00COOK COUNTY 2nd INSTALLMENT TAX BILLS DELAYED<p><span style="background-color: white; color: #050505; font-family: inherit; font-size: 15px; white-space: pre-wrap;">The</span><span data-offset-key="1qn29-1-0" style="background-color: white; color: #050505; font-family: inherit; font-size: 15px; white-space: pre-wrap;"> streak is over. Closing lawyers and owners who do not escrow for property taxes celebrate. </span></p><div class="" data-block="true" data-editor="bc96u" data-offset-key="4l521-0-0" style="background-color: white; color: #050505; font-family: "Segoe UI Historic", "Segoe UI", Helvetica, Arial, sans-serif; font-size: 15px; white-space: pre-wrap;"><div class="_1mf _1mj" data-offset-key="4l521-0-0" style="direction: ltr; font-family: inherit; position: relative;"><span style="font-family: inherit;">We are often asked - when will Cook County 2nd installment property tax bills come out?</span></div></div><div class="" data-block="true" data-editor="bc96u" data-offset-key="evjni-0-0" style="background-color: white; color: #050505; font-family: "Segoe UI Historic", "Segoe UI", Helvetica, Arial, sans-serif; font-size: 15px; white-space: pre-wrap;"><div class="_1mf _1mj" data-offset-key="evjni-0-0" style="direction: ltr; font-family: inherit; position: relative;"><span data-offset-key="evjni-0-0" style="font-family: inherit;"><br data-text="true" /></span></div></div><div class="" data-block="true" data-editor="bc96u" data-offset-key="t1qc-0-0" style="background-color: white; color: #050505; font-family: "Segoe UI Historic", "Segoe UI", Helvetica, Arial, sans-serif; font-size: 15px; white-space: pre-wrap;"><div class="_1mf _1mj" data-offset-key="t1qc-0-0" style="direction: ltr; font-family: inherit; position: relative;"><span data-offset-key="t1qc-0-0" style="font-family: inherit;">For most of my career, the best answer was a shrug of the shoulders and a warm smile. None of us knew. Mail-out dates were erratic. Theoretically due out July 1st billing. Rarely that early. Erratic. Unpredictable. August? Maybe. September? As late as November - once, anyway. Your guess as good as mine.</span></div></div><div class="" data-block="true" data-editor="bc96u" data-offset-key="64tdj-0-0" style="background-color: white; color: #050505; font-family: "Segoe UI Historic", "Segoe UI", Helvetica, Arial, sans-serif; font-size: 15px; white-space: pre-wrap;"><div class="_1mf _1mj" data-offset-key="64tdj-0-0" style="direction: ltr; font-family: inherit; position: relative;"><span data-offset-key="64tdj-0-0" style="font-family: inherit;"><br data-text="true" /></span></div></div><div class="" data-block="true" data-editor="bc96u" data-offset-key="cahdv-0-0" style="background-color: white; color: #050505; font-family: "Segoe UI Historic", "Segoe UI", Helvetica, Arial, sans-serif; font-size: 15px; white-space: pre-wrap;"><div class="_1mf _1mj" data-offset-key="cahdv-0-0" style="direction: ltr; font-family: inherit; position: relative;"><span data-offset-key="cahdv-0-0" style="font-family: inherit;">But for nine years running tax bills were released online in late June (often the 30th). Due August 1st or there-abouts. Consistency is to be appreciated in most contexts, but especially stressful for closing lawyers and title company escrow officers. Unpaid taxes are allocated between buyers and sellers at closing and June 30th is one of our busiest days in the business. Tax bills data released early in the morning mean last minute revised computations, revised closing statements, further lender reviews and approvals. These changes force disruptions and delays. Already busy closing schedules were often blown to pieces. </span></div></div><div class="" data-block="true" data-editor="bc96u" data-offset-key="am6os-0-0" style="background-color: white; color: #050505; font-family: "Segoe UI Historic", "Segoe UI", Helvetica, Arial, sans-serif; font-size: 15px; white-space: pre-wrap;"><div class="_1mf _1mj" data-offset-key="am6os-0-0" style="direction: ltr; font-family: inherit; position: relative;"><span data-offset-key="am6os-0-0" style="font-family: inherit;"><br data-text="true" /></span></div></div><div class="" data-block="true" data-editor="bc96u" data-offset-key="b5ekh-0-0" style="background-color: white; color: #050505; font-family: "Segoe UI Historic", "Segoe UI", Helvetica, Arial, sans-serif; font-size: 15px; white-space: pre-wrap;"><div class="_1mf _1mj" data-offset-key="b5ekh-0-0" style="direction: ltr; font-family: inherit; position: relative;"><span data-offset-key="b5ekh-0-0" style="font-family: inherit;">So it was with great dread and foreboding of the potential for an even more stressful day yesterday that I checked in on the County Treasurer's web site before retiring on the 29th. Again, as soon as I fired up the computer on the 30th. Now and again throughout the day. Nada. Zilch. Nothing. </span></div></div><div class="" data-block="true" data-editor="bc96u" data-offset-key="1mt62-0-0" style="background-color: white; color: #050505; font-family: "Segoe UI Historic", "Segoe UI", Helvetica, Arial, sans-serif; font-size: 15px; white-space: pre-wrap;"><div class="_1mf _1mj" data-offset-key="1mt62-0-0" style="direction: ltr; font-family: inherit; position: relative;"><span data-offset-key="1mt62-0-0" style="font-family: inherit;"><br data-text="true" /></span></div></div><div class="" data-block="true" data-editor="bc96u" data-offset-key="cemse-0-0" style="background-color: white; color: #050505; font-family: "Segoe UI Historic", "Segoe UI", Helvetica, Arial, sans-serif; font-size: 15px; white-space: pre-wrap;"><div class="_1mf _1mj" data-offset-key="cemse-0-0" style="direction: ltr; font-family: inherit; position: relative;"><span data-offset-key="cemse-0-0" style="font-family: inherit;">The tax proration can is kicked down the road. Perhaps next month? We'll see.</span></div></div><div class="" data-block="true" data-editor="bc96u" data-offset-key="fke96-0-0" style="background-color: white; color: #050505; font-family: "Segoe UI Historic", "Segoe UI", Helvetica, Arial, sans-serif; font-size: 15px; white-space: pre-wrap;"><div class="_1mf _1mj" data-offset-key="fke96-0-0" style="direction: ltr; font-family: inherit; position: relative;"><span data-offset-key="fke96-0-0" style="font-family: inherit;"><br data-text="true" /></span></div></div><div class="" data-block="true" data-editor="bc96u" data-offset-key="1bf2o-0-0" style="background-color: white; color: #050505; font-family: "Segoe UI Historic", "Segoe UI", Helvetica, Arial, sans-serif; font-size: 15px; white-space: pre-wrap;"><div class="_1mf _1mj" data-offset-key="1bf2o-0-0" style="direction: ltr; font-family: inherit; position: relative;"><span data-offset-key="1bf2o-0-0" style="font-family: inherit;">More info here. </span><span class="py34i1dx" style="color: var(--blue-link); font-family: inherit;">https://bit.ly/3h9mnSx</span></div></div><div class="blogger-post-footer">
contact michael@mhwasserman.com
visit www.mhwasserman.com
</div>Michael H. Wassermanhttp://www.blogger.com/profile/17542282494747756366noreply@blogger.com0tag:blogger.com,1999:blog-2004334878153382863.post-8325982921601715582021-02-07T10:15:00.016-06:002021-02-07T10:27:00.647-06:00 Looking to save $$ on 2020 property taxes? Start here<h2 style="text-align: left;"><span style="font-weight: normal;">Cook County tax bills are due March 2nd</span></h2><p class="MsoNormal"><o:p></o:p></p><h4><b>by Michael H. Wasserman</b></h4><div style="text-align: left;"><span style="font-weight: normal;">"'Tis
impossible to be sure of anything but death and taxes." Christopher
Bullock's infamous quote still rings true, some 300 years later. </span></div><div style="text-align: left;"><span style="font-weight: normal;"><br /></span></div><table cellpadding="0" cellspacing="0" class="tr-caption-container" style="float: right;"><tbody><tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgUyk95DTjSKTN6jxbO_5pVYXgq9Pqoviiu5vuWamoe8UQjfvMWf-7kB45dbVMF_xYaT1bJPzugWi0rgD0xOvA_TKMlpo8YWJmYCuPjUuRo-3lcX0znX8bUO1a5uh6gaM81YOnxQIs4q7Q-/s400/Tax+bill+image+for+blog.jpg" style="clear: right; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img border="0" data-original-height="400" data-original-width="300" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgUyk95DTjSKTN6jxbO_5pVYXgq9Pqoviiu5vuWamoe8UQjfvMWf-7kB45dbVMF_xYaT1bJPzugWi0rgD0xOvA_TKMlpo8YWJmYCuPjUuRo-3lcX0znX8bUO1a5uh6gaM81YOnxQIs4q7Q-/s320/Tax+bill+image+for+blog.jpg" /></a></td></tr><tr><td class="tr-caption" style="text-align: center;">Cook County tax bills <br />are due March 2nd</td></tr></tbody></table>Cook County's 2020
First Installment property tax bills are due March 2nd. Surrounding counties
will be due soon enough too. Thankfully, while none of us can avoid death,
there are a few ways to save money on property taxes...which might make living
a little sweeter.<p class="MsoNormal">We are talking here
are 2020 property tax bills that we will all need to pay this year, in 2021. Exemption
eligibility is determined as of <u>January 1st, 2020</u>. If you closed on
property last year, you can certainly check the <i>former</i> owner’s status
and ride on his or her coat-tails. You will not be eligible to claim exemptions
you may qualify for yourself.</p><p class="MsoNormal"><o:p></o:p></p>
<p class="MsoNormal"><b>Check out
all the property-tax exemptions currently available for Cook County homeowners. </b>Scroll below to find
links and generally helpful tips and information.</p><div><ul style="text-align: left;"><li><span style="color: #274e13;">Homeowner Exemption</span></li><li><span style="color: #274e13;">Senior Citizen
Exemption</span></li><li><span style="color: #274e13;">Senior Freeze
Exemption</span></li><li><span style="color: #274e13;">Longtime Homeowner
Exemption</span></li><li><span style="color: #274e13;">Home Improvement
Exemption</span></li><li><span style="color: #274e13;">Returning Veterans
Exemption</span></li><li><span style="color: #274e13;">Disabled Veterans
Homeowner Exemption</span></li><li><span style="color: #274e13;">Disabled Persons
Homeowner Exemption</span></li></ul></div><p class="MsoNormal"><o:p></o:p></p>
<p class="MsoNormal">If you know you are
eligible for one of these, click on over to the <a href="https://www.cookcountyassessor.com/exemptions" rel="nofollow" target="_blank">Cook County Assessor's
exemption page</a> to apply. If you'd like to learn a little more first...read on,
my friends.<o:p></o:p></p>
<p class="MsoNormal"><b>Did you miss any
exemptions for previous years? </b>No worries! File <a href="https://www.cookcountyassessor.com/certificates-error" rel="nofollow" target="_blank">Certificates of Error</a> to claim refunds
going back four years. (We can probably help with this if you contact the
office).</p><p class="MsoNormal"><o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p><b>NEW DURING COVID-19 –</b></p><p class="MsoNormal"><b><o:p></o:p></b></p>
<p class="MsoNormal"><span style="font-family: "Times New Roman", serif;">Cook County has</span><span style="font-family: "Times New Roman", serif;"> </span><u style="font-family: "Times New Roman", serif;">waived</u><span style="font-family: "Times New Roman", serif;"> all late fees for two months on all 2020 property taxes. Taxpayers can pay March 2nd, 2021, without a late fee through May 3, 2021 (normally 1.5% per month). Late fees will also be waived for two months for the Second Installment, later this year.</span></p><div><ul></ul></div>
<p class="MsoNormal"><o:p>The State of Illinois is allowing for automatic renewal of Senior Citizen Freeze and Persons with Disabilities & Disabled Veterans Exemptions this year only. </o:p></p>
<p class="MsoNormal" style="text-align: center;"><o:p> </o:p>__________________________</p><p class="MsoNormal"><o:p></o:p></p>
<h3 style="text-align: center;"><span style="color: #38761d;">Homeowner Exemption:</span></h3><p class="MsoNormal"><o:p></o:p></p>
<p class="MsoNormal">You are eligible if:</p><p class="MsoNormal"><o:p></o:p></p>
<p class="MsoNormal"></p><ul style="text-align: left;"><li>You or the previous
owner used the property as a principal residence</li><li>You were responsible
for the real estate taxes.</li></ul><p></p><p class="MsoNormal"><o:p></o:p></p>
<p class="MsoNormal">>> <a href="https://prodassets.cookcountyassessor.com/s3fs-public/form_documents/HoHs.pdf" rel="nofollow" target="_blank">Click here to print out the application for Homeowner Exemption</a></p><p class="MsoNormal"><o:p></o:p></p><p class="MsoNormal">Tip 1: This
exemption renews automatically.</p><p class="MsoNormal"><o:p></o:p></p>
<p class="MsoNormal">Tip 2: Unless you transferred
ownership or re-titled the property. If so, you need to re-apply.</p><p class="MsoNormal"><o:p></o:p></p>
<p class="MsoNormal">Tip 3: If you’ve
never received this exemption before, you’ll need to apply for it.</p><p class="MsoNormal"><o:p></o:p></p>
<p class="MsoNormal"><o:p>T</o:p>ip 4: If you’ve moved
out, you need to file an exemption waiver to let the County know that you are
no longer eligible.</p><p class="MsoNormal"><o:p></o:p></p>
<p class="MsoNormal">Tip 5: Tenants
responsible to pay property taxes as a part of their lease agreements are
eligible for the exemption.</p><p class="MsoNormal"><o:p></o:p></p>
<p class="MsoNormal" style="text-align: center;"> __________________________</p><p class="MsoNormal"><span style="color: #274e13;"><o:p></o:p></span></p>
<h3 style="text-align: center;"><span style="color: #274e13;">Senior Citizen
Exemption</span></h3><p class="MsoNormal" style="text-align: center;"><o:p></o:p></p>
<p class="MsoNormal" style="text-align: left;">You are eligible if
you:</p><p class="MsoNormal"><o:p></o:p></p>
<p class="MsoNormal"></p><ul style="text-align: left;"><li>Were born on or
before December 31, 1955. </li><li>Use the home as your
primary residence or are responsible for tax payments. </li></ul><a href="https://prodassets.cookcountyassessor.com/s3fs-public/form_documents/SeniorExemption.pdf" rel="nofollow" target="_blank"><o:p></o:p></a><p></p>
<p class="MsoNormal"><a href="https://prodassets.cookcountyassessor.com/s3fs-public/form_documents/SeniorExemption.pdf" rel="nofollow" target="_blank"><o:p></o:p></a></p>
<p class="MsoNormal"><a href="https://prodassets.cookcountyassessor.com/s3fs-public/form_documents/SeniorExemption.pdf" rel="nofollow" target="_blank">>> Click here to print out the application for Senior Freeze Exemption.</a></p><p class="MsoNormal">Tip 1: This
exemption renews automatically.</p><p class="MsoNormal">Tip 2: This
exemption only applies to that portion of the year that a senior actually lived
in the home. If the senior sold mid-year, the exemption is supposed to be
pro-rated.</p><p class="MsoNormal"><o:p></o:p></p>
<p class="MsoNormal">Tip 3: This
exemption is available to the (eligible) surviving senior even if the property
is owned in the name a deceased spouse.</p><p class="MsoNormal"><o:p></o:p></p>
<h3 style="text-align: center;">__________________________</h3><h3 style="text-align: center;"><span style="color: #274e13;">Senior Freeze
Exemption</span></h3><p class="MsoNormal"><o:p></o:p></p>
<p class="MsoNormal" style="text-align: center;"><o:p></o:p></p>
<p class="MsoNormal">The Senior Freeze
further reduces property taxes by “locking in” a property’s “equalized assessed
valuation” to mitigate against tax bills that increase due to neighborhood
price appreciation. The intent here is to help our elderly afford to stay in
their homes when neighborhood values are rising.</p><p class="MsoNormal"><o:p></o:p></p>
<p class="MsoNormal">You are eligible if
you:</p><p class="MsoNormal"><o:p></o:p></p>
<p class="MsoNormal"></p><ul style="text-align: left;"><li>Were born in 1955 or
earlier </li><li>Had a total
household income of $65,000 or less in 2019.</li><li>Owned and used the property as your principle
residence on January 1, 2019 and January 1, 2020.</li><li>Were responsible for
the payment of 2019 and 2020 property taxes. </li></ul><o:p></o:p><p></p>
<p class="MsoNormal"><o:p></o:p></p>
<p class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.5in;"><o:p></o:p></p>
<p class="MsoNormal"><o:p></o:p></p>
<p class="MsoNormal"><a href="https://prodassets.cookcountyassessor.com/s3fs-public/form_documents/SrFrz.pdf" rel="nofollow" target="_blank">>> Click here to print out the application for Senior Freeze Exemption</a><o:p></o:p></p><p class="MsoNormal">Tip 1: This exemption
will renew automatically for 2020 ONLY.</p><p class="MsoNormal"><o:p></o:p></p>
<p class="MsoNormal">Tip 2: There are
several other programs available to help seniors manage the burdens of property
taxes, including tax deferral programs. Contact the County Assessor for more
info.</p><p class="MsoNormal"><o:p></o:p></p>
<p class="MsoNormal" style="text-align: center;"><o:p> </o:p>__________________________</p><p class="MsoNormal"><o:p></o:p></p>
<h3 style="text-align: center;"><span style="color: #274e13;">Longtime Homeowner
Exemption </span></h3><p class="MsoNormal" style="text-align: center;"><o:p></o:p></p>
<p class="MsoNormal">You are eligible if
you:<o:p></o:p></p>
<p class="MsoNormal"></p><ul style="text-align: left;"><li>Owned and occupied
your residence for all of 2020. </li><li>Had a total
household income of $100,000 or less.</li><li>Experienced an
assessment increase for your property that was significant enough to exceed the
maximum amounts set by state law. </li></ul><o:p></o:p><p></p>
<p class="MsoNormal"><o:p></o:p></p>
<p class="MsoNormal"><o:p></o:p></p>
<p class="MsoNormal">The assessor sends
applications to all properties that qualify for this exemption. Call the Cook
County Assessor’s office at 312-443-7550 if you didn’t get an application and
think you are eligible.<o:p></o:p></p>
<p class="MsoNormal" style="text-align: center;">__________________________</p><p class="MsoNormal"><o:p></o:p></p>
<h3 style="text-align: center;"><span style="color: #274e13;">Home Improvement
Exemption</span></h3><p class="MsoNormal" style="text-align: center;"><o:p></o:p></p>
<p class="MsoNormal" style="text-align: left;">Did you do any major
home improvements this year? You can lock your property taxes for at least four
years if you made up to $75,000 worth of qualifying improvements (that you
pulled permits for).</p>
<p class="MsoNormal">Qualifying
improvements are generally structural in nature, as opposed to normal/routine
maintenance or repairs of “normal” weather damage.<o:p></o:p></p>
<p class="MsoNormal">If you think you
qualify for the Home Improvement Exemption and didn’t get an application, call
the Cook County Assessor's Office at 312-443-7550.</p><p class="MsoNormal"><o:p></o:p></p>
<p class="MsoNormal" style="text-align: center;">__________________________<o:p></o:p></p>
<h3 style="text-align: center;"><span style="color: #274e13;">Returning Veterans
Exemption</span></h3><p class="MsoNormal" style="text-align: center;"><o:p></o:p></p>
<p class="MsoNormal">Veterans returning
from active duty in armed conflict are eligible to receive a $5,000 reduction for
each taxable year in which they return.</p>
<p class="MsoNormal">You qualify for this
exemption if you: <o:p></o:p></p>
<p class="MsoNormal"></p><ul style="text-align: left;"><li>Are an Illinois
resident who served in the U.S. Armed Forces, Illinois National Guard or U.S.
Reserve Forces. </li><li>Returned from active
duty in an armed conflict involving our armed forces. Owned or used the
property as your principal residence on January 1, 2020. </li><li>Are responsible for
payment of the property taxes. </li></ul><a href="https://prodassets.cookcountyassessor.com/s3fs-public/form_documents/ReturningVeteransEx.pdf" rel="nofollow" target="_blank"><o:p></o:p></a><p></p>
<p class="MsoNormal"><a href="https://prodassets.cookcountyassessor.com/s3fs-public/form_documents/ReturningVeteransEx.pdf" rel="nofollow" target="_blank"><o:p></o:p></a></p>
<p class="MsoNormal"><a href="https://prodassets.cookcountyassessor.com/s3fs-public/form_documents/ReturningVeteransEx.pdf" rel="nofollow" target="_blank"><o:p></o:p></a></p>
<p class="MsoNormal"><a href="https://prodassets.cookcountyassessor.com/s3fs-public/form_documents/ReturningVeteransEx.pdf" rel="nofollow" target="_blank">>> Click here
to print out the application for Returning Veterans Exemption</a><o:p></o:p></p>
<p class="MsoNormal" style="text-align: center;">__________________________<o:p></o:p></p>
<h3 style="text-align: center;"><span style="color: #274e13;">Disabled Veterans
Homeowner Exemption </span></h3><p class="MsoNormal" style="text-align: center;"><o:p></o:p></p>
<p class="MsoNormal">This one is a little
complicated. Veterans with a service-connected disability are eligible for tax
reductions, based on the percentage of disability as certified by the VA.</p><p class="MsoNormal">This exemption
reduces the Equalized Assessed Value (not the amount of the taxes) of a
disabled veteran’s primary residence by $2,500 or $5,000, which should lower
the tax bill. If the disability is 70% or more, the veteran is allowed a (well
deserved) total exemption.</p><p class="MsoNormal"><o:p></o:p></p>
<p class="MsoNormal">This chart from the
assessor’s site should help:</p><p class="MsoNormal"><o:p></o:p></p>
<table border="1" cellpadding="1" cellspacing="1" style="background-color: white; border-collapse: collapse; border-spacing: 0px; color: black; font-family: "Open Sans", sans-serif; font-size: 14px; width: 821.6px;"><thead style="box-sizing: border-box;"><tr style="box-sizing: border-box;"><th scope="col" style="box-sizing: border-box; padding: 0px; text-align: left;">Percentage of Disability</th><th scope="col" style="box-sizing: border-box; padding: 0px; text-align: left;">Exemption amount (EAV reduction)</th></tr></thead><tbody style="box-sizing: border-box;"><tr style="box-sizing: border-box;"><td style="box-sizing: border-box; padding: 0px;">30-49%</td><td style="box-sizing: border-box; padding: 0px;">$2,500</td></tr><tr style="box-sizing: border-box;"><td style="box-sizing: border-box; padding: 0px;">50-69%</td><td style="box-sizing: border-box; padding: 0px;">$5,000</td></tr><tr style="box-sizing: border-box;"><td style="box-sizing: border-box; padding: 0px;">70% and greater</td><td style="box-sizing: border-box; padding: 0px;">$250,000</td></tr></tbody></table><p class="MsoNormal"><a href="https://prodassets.cookcountyassessor.com/s3fs-public/form_documents/VeteranswDisabilitiesEx.pdf" rel="nofollow" target="_blank">>> Click here to print out the application for Disabled Veterans Homeowner Exemption</a></p><p class="MsoNormal"><a href="https://prodassets.cookcountyassessor.com/s3fs-public/form_documents/VeteranswDisabilitiesEx.pdf" rel="nofollow" target="_blank"><o:p></o:p></a></p><p class="MsoNormal">Tip: This exemption will
renew automatically for 2020 ONLY.</p>
<p class="MsoNormal" style="text-align: center;">__________________________<o:p></o:p></p>
<h3 style="text-align: center;">Disabled Persons
Homeowner Exemption </h3><p class="MsoNormal" style="text-align: center;"><o:p></o:p></p>
<p class="MsoNormal" style="text-align: left;">You qualify for this
exemption if you: <o:p></o:p></p>
<p class="MsoNormal"></p><ul style="text-align: left;"><li>Are disabled or
became disabled during the tax year (2020)</li><li>Owned or leased the
property; occupied it as a principal residence on January 1, 2020. </li><li>Are responsible for
tax payments. </li></ul><o:p></o:p><p></p>
<p class="MsoNormal"><o:p></o:p></p>
<p class="MsoNormal"><o:p></o:p></p>
<p class="MsoNormal">Tip: A disabled
person may still qualify for this exemption even if they now reside in a
facility licensed under the Nursing Home Care Act, provided they (a) qualified
previously and (b) the property is still occupied by your spouse, or the
property remains unoccupied. <o:p></o:p></p>
<p class="MsoNormal"><a href="https://prodassets.cookcountyassessor.com/s3fs-public/form_documents/PersonswDisabilitiesEx.pdf" rel="nofollow" target="_blank">>> Click here to apply for the Disabled Persons Homeowner Exemption<o:p></o:p></a></p><p class="MsoNormal">Tip: This exemption will
renew automatically for 2020 ONLY.</p><p class="MsoNormal"><o:p></o:p></p>
<p class="MsoNormal"></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjvorBjzMZowFzQ1YxjRXINA2_lP8M301hyhiZf6hPpP7mRX3dxrGwvPKmHNv0Z8bmmcrZkbj0Cm1vWpIdISDVU0UZx9V3Je6wv26EDWYAmnRtN1cCdXU6PTMlgOv9RaGR5ijdUdEI67Zao/s320/Death+and+Taxes+r2.png" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="251" data-original-width="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjvorBjzMZowFzQ1YxjRXINA2_lP8M301hyhiZf6hPpP7mRX3dxrGwvPKmHNv0Z8bmmcrZkbj0Cm1vWpIdISDVU0UZx9V3Je6wv26EDWYAmnRtN1cCdXU6PTMlgOv9RaGR5ijdUdEI67Zao/s0/Death+and+Taxes+r2.png" /></a></div><br />We hope this
information is helpful. To learn more about exemptions, find your PIN, and
apply, click over to the <a href="https://www.cookcountyassessor.com/exemptions" rel="nofollow" target="_blank">Cook County Assessor’s website</a>. Or call them at
312-443-7550 they can help you determine which exemption(s) will get you the
most savings.<p></p><p class="MsoNormal"><o:p></o:p></p>
<p class="MsoNormal"><b>Is there an
exemption you qualified for but didn’t claim? </b>If you were eligible for
exemptions in years past—but did not claim them—<a href="mailto:michael@mhwasserman.com">contact us</a>. We may be able to help you file <a href="https://www.cookcountyassessor.com/certificates-error" rel="nofollow" target="_blank">Certificates of Error</a> to recoup the money you deserve.</p><p class="MsoNormal"><o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><b>Additional links:</b><o:p></o:p></p>
<p class="MsoNormal"><a href="https://www.cookcountytreasurer.com/" rel="nofollow" target="_blank">Cook CountyTreasurer</a><o:p></o:p></p>
<p class="MsoNormal"><a href="https://www.cookcountytreasurer.com/setsearchparameters.aspx" rel="nofollow" target="_blank">Cook CountyExemption History Search</a></p><div class="blogger-post-footer">
contact michael@mhwasserman.com
visit www.mhwasserman.com
</div>Michael H. Wassermanhttp://www.blogger.com/profile/17542282494747756366noreply@blogger.comtag:blogger.com,1999:blog-2004334878153382863.post-80098828850300093772021-01-26T09:11:00.003-06:002021-01-26T12:29:03.512-06:00Do I HAVE to shovel? Chicago snow shoveling law and etiquette<p>Set aside any discussion of climate change or COVID for a moment. It’s winter. It’s Chicago. It snows. As a homeowner, you owe it to your friends, family, neighbors and delivery people to keep the sidewalks free of snow and ice.</p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjeXV2t3HzDPvhYVIaUpyl9KRyvR3Fy13ZmbnrQex-2Gkvk7iM8ULK0NW_NIvgzOFs3QbInJ99yT4lztLPBWpH_nPsGyBWaIYrYmBjuuO2MIDNqpA9BOqHhveA2r20K3iAJr0cBavis3BTu/s685/chicago-buildings-snowplow-street-112222.jpg" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="512" data-original-width="685" height="273" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjeXV2t3HzDPvhYVIaUpyl9KRyvR3Fy13ZmbnrQex-2Gkvk7iM8ULK0NW_NIvgzOFs3QbInJ99yT4lztLPBWpH_nPsGyBWaIYrYmBjuuO2MIDNqpA9BOqHhveA2r20K3iAJr0cBavis3BTu/w366-h273/chicago-buildings-snowplow-street-112222.jpg" width="366" /></a></div><br /><div><br /><a name='more'></a><br />In truth, it’s not just neighborly to shovel—it’s the law. Municipal Code of Chicago (<a href="http://chicago-il.elaws.us/code/coor_t4_ch4-4_arti_sec4-4-310" target="_blank">4-4-310</a> and <a href="https://codelibrary.amlegal.com/codes/chicago/latest/chicago_il/0-0-0-2491563" target="_blank">10-8-180</a>), to be exact. So, before you <a href="https://www.huffpost.com/entry/chicago-dibs-parking-photos_n_6471978">claim dibs</a> on your parking spot, make sure you’re doing your share of snow removal on the side walk.<br /><br /><b>Here’s the lowdown on snow removal in Chicago:</b><br /><br /><ul><li>You must shovel as soon as possible after snow falls—seven days a week. There is no “weekend” exception</li><ul><li>Snow that falls between 7:00 am and 7:00 pm must be cleared by 10:00 pm </li><li>Snow that falls between 7:00 pm and 7:00 am must be cleared by 10:00 am</li></ul><li>You must clear at least a five-foot wide path on all sidewalks adjacent to your property, including any crosswalk ramps</li><li>Don’t pile your snow into the right-of-way, bus stop, parking spaces, bike lanes or Divvy stations</li></ul><br /><b>What if you don’t shovel? </b><br />Failure to abide is punishable by fines, ranging from $50 to $500 per day on a case-by-case basis, as determined by City Administrative Hearings judges. Business fines can go up to $1,000/day.<br /><br /><b>Here’s why you really should shovel</b><br />Law aside, we’re a walking city—clearing the walkway is the nice thing to do. When you shovel, you make a path for kids getting to school, pet owners walking pets, people with disabilities, seniors and those with mobility challenges. And don’t forget about your USPS, UPS, Fed-Ex and Amazon deliverers—be sure to clear the path to your front door and mail box.<div><br /></div><div><b>On the Other Hand....</b></div><div>The laws of landowner liability for personal injuries favor owners who <i>do not </i>shovel. Property owners are not responsible for injuries on un-shoveled/unsalted snow. Owners who create "un-natural" accumulations of snow or ice that cause an injury <i>may </i>be liable. The law does not expect perfection when you shovel. These laws are directed at someone who creates or worsens unsafe accumulations of snow or ice, whether by downspouts, drains, or yes, n some situations, plowing or shoveling. The bottom line here is to do your best. Make conditions better, not worse. Make the best of it.</div><div><br /></div><div><b>What if you (or a neighbor) <i>can’t</i> shovel? </b><br />• Call 311 to request shoveling service<br />• Request service (select “Ice and snow” from the service type list).<br />• If not in Chicago, visit the website of your city, village or town <br /><br />Wh<b>at if your neighbor <i>doesn’t </i>shovel?</b><br />• Call 311<br />• Submit the location at Uncleared Sidewalk <br /><br />There’s nothing like a big snowfall to bring the city together. Some say winters are the only reason they don’t live here. I say it’s one of the best reasons; without Chicago winters, everyone would live here.<br /><br /><br />Learn more:<br /><a href="https://www.chicago.gov/city/en/depts/cdot/supp_info/sidewalk_snow_removal.html" target="_blank">City of Chicago Snow Ordinance</a><span style="color: #0000ee;"><u>https://www.chicago.gov/city/en/depts/cdot/supp_info/sidewalk_snow_removal.html<a href="https://www.chicago.gov/city/en/depts/cdot/supp_info/sidewalk_snow_removal.html">null</a></u></span><br /><br /></div></div><div class="blogger-post-footer">
contact michael@mhwasserman.com
visit www.mhwasserman.com
</div>Michael H. Wassermanhttp://www.blogger.com/profile/17542282494747756366noreply@blogger.comChicago, IL 60602, USA41.8834728 -87.629126813.573238963821154 -122.7853768 70.193706636178845 -52.472876799999995tag:blogger.com,1999:blog-2004334878153382863.post-16037200202306205912020-12-28T15:08:00.000-06:002020-12-28T15:08:18.049-06:00A DECADE's GRATTITUDE - Thanks to You 2020<h4 style="text-align: left;">by Michael H Wasserman</h4><p>Our day to day focus in this office is to facilitate safe, secure, and pleasant closings for our clients when they buy and sell real estate. We work very hard to assure success and to solve the problems that get in the way of our shared objectives. We are always on the lookout for ways to make the process even easier. We spend an inordinate amount of time on improving the system and the client experience. </p><p></p><p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhVTG1sUFcH5Y430lfqtnydfZbTe65JH2A9INOALkPZ-x4MS_k7-x2w3503_BNeFDHnqS2J3RE34RSTZLoK7rULWoOWXGVKi1-gnyrGF6dKPkLVhyphenhyphen0q_bxjURjA9AQYfoebeeGhPSZ7Z3qe/s700/noun_gratitude_2408345.png" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="700" data-original-width="700" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhVTG1sUFcH5Y430lfqtnydfZbTe65JH2A9INOALkPZ-x4MS_k7-x2w3503_BNeFDHnqS2J3RE34RSTZLoK7rULWoOWXGVKi1-gnyrGF6dKPkLVhyphenhyphen0q_bxjURjA9AQYfoebeeGhPSZ7Z3qe/s320/noun_gratitude_2408345.png" /></a></div><br />Like many other businesses, we see the year's end as a time of reflection. We step back from the day to day work and try to appreciate the results of our efforts. To consider our achievements and to express our deepest gratitude to everyone we work with. We thank the other deal participants, our referral partners and we consider how fortunate we are that so many hundreds of families entrust us us on work on their real estate deals. We can do none of this without them. We cannot do any of this without you. We appreciate all of you. Our hearts are full. <p></p><p>How did we do this year? Well, the firm keeps growing. That is certainly good. We received some very flattering comments in our internal post-closing surveys. Our reviews on Yelp, Google and other public facing internet review sites continue to be positive. Client feedback? It makes us very humble. It evokes feel gratitude and satisfaction. Not that we are going to ride on our past laurels alone.</p><p>That feedback from our clients drives us to try even harder and to do even better. We continue to refine our services and our systems with that one goal in mind. We help clients close real estate deals. Safely, securely, and with the least amount of stress possible. </p><p> We can discuss some of those initiatives in the new year. For now, let's turn back to an older - more firmly established initiative.</p><p>Ten years ago, at a time when the real estate markets were still reeling from the 2008 financial crisis mortgage industry melt down, I got to this point and resolved that it was not enough to simply feel grateful. We needed to find a way to transform that gratitude into a tangible and meaningful action.</p><p>Ten years ago, we began our <u>Thanks to You</u> program. For a decade now, we have asked clients who closed on residential transactions to select one from our curated list of ten charitable organizations and upon doing so, we have directed $50 accordingly. Clients designate the specific recipient from our list and all donations are made as tributes to them. </p>The <u>Thanks to You</u> program was intended and still acts to both express gratitude to our clients for hiring us, and to help build a stronger community for us all. Together we have pledged tens of thousands of dollars to organizations supporting better education, better health, and the fine arts.<br /><br />As crazy as the world has been in 202, it would have been an easy year to let things pass. This year is no exception and we spent much time today completing that annual of gift-giving. <br /><br />I suspect we do not say this often enough, but we really appreciate your business and your referrals. Thanks to you. <div class="blogger-post-footer">
contact michael@mhwasserman.com
visit www.mhwasserman.com
</div>Michael H. Wassermanhttp://www.blogger.com/profile/17542282494747756366noreply@blogger.com0tag:blogger.com,1999:blog-2004334878153382863.post-79561634241842956402020-05-27T10:34:00.001-05:002020-05-27T10:34:12.637-05:00Market Update - Lenders are still Lending, But it's Getting a bit Harder <br />
<h4>
by Michael H. Wasserman</h4>
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<table cellpadding="0" cellspacing="0" class="tr-caption-container" style="float: right; text-align: right;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhgXkWLPTnPTcfEg4PxOBpz0TSwus7w-N44ooJ37owuuU4-G6z7IsX0TyZpTmoHClH4IJloiJ-xPnw9tPDazO_j4W3NbIokhuKTQWCEyS8uPK-XYEOutVkX01QBqZmZ0EVwCPtlbU27APGV/s1600/steveschneider.png" imageanchor="1" style="clear: right; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img border="0" data-original-height="200" data-original-width="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhgXkWLPTnPTcfEg4PxOBpz0TSwus7w-N44ooJ37owuuU4-G6z7IsX0TyZpTmoHClH4IJloiJ-xPnw9tPDazO_j4W3NbIokhuKTQWCEyS8uPK-XYEOutVkX01QBqZmZ0EVwCPtlbU27APGV/s1600/steveschneider.png" style="cursor: move;" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Steve Schneider<br /></td></tr>
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I’m not sure how you spent your Memorial Day weekend, but if
you are in the market to buy a new home in or around Chicago, you very likely spent
much of it out and about looking at new homes. By all accounts real estate
activity right now is quite strong despite a limited available inventory of
homes to choose from. Buyers seem to be re-energized right now and the effects
have been staggering. Most buyers who have contacted me this week have won out
or are still engaged in bidding wars over properties they like. Brokers are
reporting the clients are back out, looking at 5-10 homes before making offers.
Our initial fears of the COVID-19 pandemic seem to be waning. Confidence in our
Realtors’ ability to keep us safe and secure in the house hunting process is
increasing. We have seen more new contracts come into the office in the past
seven days than we had in the preceding three weeks combined.<o:p></o:p></div>
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If you are a seller waiting on the sidelines before listing
(or re-listing), it might be the time to get into the marketplace right now.<o:p></o:p></div>
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<table cellpadding="0" cellspacing="0" class="tr-caption-container" style="float: right; margin-left: 1em; text-align: right;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjN8XxQr-9KQdPqaAUq0XEDVr0M9pZTZXeypRR1Oe_ZvyOlZ1uRnkAvgbjMI5WdXo88t1GUU8WJJlOgQQRJF3mbeTkyp040HKvVPRBlb8I03_J1t7TSHQzKkSGcebc3Mdjp06QFQ6I8_6wH/s1600/chamberlin.jpg" imageanchor="1" style="clear: right; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img border="0" data-original-height="1600" data-original-width="1067" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjN8XxQr-9KQdPqaAUq0XEDVr0M9pZTZXeypRR1Oe_ZvyOlZ1uRnkAvgbjMI5WdXo88t1GUU8WJJlOgQQRJF3mbeTkyp040HKvVPRBlb8I03_J1t7TSHQzKkSGcebc3Mdjp06QFQ6I8_6wH/s320/chamberlin.jpg" width="213" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Mike Chamberlin<br /></td></tr>
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With that said, clients are all expressing the same concerns
to me – will the mortgage lending go thru or is COVID-19 causing stumbling
blocks. Understandable concerns. Headlines over recent weeks have reported lenders
eliminating some loan programs altogether and others tightening lending
guidelines on remaining purchase money loans options. Job insecurity factors in
here too. No one wants to lend to a borrower who does not have a source of
income from which to repay the loan. I am getting a lot of questions about
financing.<o:p></o:p></div>
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<a name='more'></a><br />
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So, I have been asking some of my favorite Chicago area loan
originators for their thoughts. <a href="https://www.zillow.com/lender-profile/mchamberlin4/" target="_blank">Michael Chamberlin</a> is a vice president and area
manager for Inland Bank. <a href="https://www.loandepot.com/loan-officers/steveschneider" target="_blank">Steve Schneider</a> is a senior loan consultant at LoanDepot.<o:p></o:p></div>
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<br /></div>
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<b>Tougher Lending Standards:<o:p></o:p></b></div>
<div class="MsoNormalCxSpMiddle" style="text-align: justify;">
Lenders are adding new requirements
in evaluating loan applications. According to Steve, borrowers who are engaged
in “high risk” <span style="font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">industries,
employers on the “Worker Adjustment and Retraining Notification” (WARN) List, self-employed
borrowers, borrowers employed by family members and borrowers who intend to
rely on rental income all should be prepared to furnish additional
documentation of earnings, and expect to have to </span>update that documentation
shortly before closing.<span style="mso-spacerun: yes;"> </span><o:p></o:p></div>
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<br /></div>
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<b>Second Loans:<o:p></o:p></b></div>
<div class="MsoNormalCxSpMiddle" style="text-align: justify;">
Mike tells me some second
mortgage companies have cut their loan to values down to 85% and others have suspended
home equity loan programs altogether but assures that there are still home
equity loan available. They are getting stricter on credit just like first tier
lenders.<o:p></o:p></div>
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<br /></div>
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<b>Jumbo Loans:<o:p></o:p></b></div>
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The Jumbo market is extremely fluid at the moment. Mike
says that most jumbo loan lenders now require 20% down payments and have gotten
stricter on scoring of credit ratings and debt ratios. They are still available
but at higher interest rates. There are simply fewer lenders willing to lend
and they are charging a premium to do so. Steve advises that there are at least
some lenders still offering loans with 10% down but not many. The important
thing is for consumers to maintain communication with their loan officers and to
never assume that things are just moving on normally. <o:p></o:p></div>
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<br /></div>
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<b>Closing Timelines:<o:p></o:p></b></div>
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We all experienced some delays earlier in the year when
interest rates dipped, and lenders worked through large numbers of mortgage
refinances applications. According to Mike, underwriting “turn-around” time has
been improving as lender have run off those loans and as the market paused during
the initial weeks following the stay-at-home orders were entered. The biggest
hurdle right now is appraisals. They are causing some bottlenecks. Steve echoes
that analysis but indicates that timelines are completely dependent on the
specific lender. Many can still close within 21 days of contract, but the
questions whether it’s truly necessary to rush through a purchase like
that. Third party situations beyond the lender’s control can cause delays
that throw such an aggressive timeline out the window. He is referring to condo
association responsiveness to necessary lender questionnaires, appraisal delays
and confirmation of borrower insurance policies. “If everyone is not on the
same page, then deadlines could be missed. It’s better sometimes to
word a contract more conservatively, like “45 days or sooner.”<o:p></o:p></div>
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<br /></div>
<div class="MsoNormal">
In sum, the lenders are still lending but the prices
consumers pay for those loans may be greater and the already rigorous documentation
required to get a loan is getting stricter.<o:p></o:p></div>
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<br /></div>
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We survey lenders in this fashion regularly so that we can
best counsel home buyers and sellers in their purchase and sale transactions. To
learn more, please feel free our office or either of these fine gentlemen. <o:p></o:p></div>
<br /><div class="blogger-post-footer">
contact michael@mhwasserman.com
visit www.mhwasserman.com
</div>Michael H. Wassermanhttp://www.blogger.com/profile/17542282494747756366noreply@blogger.com0tag:blogger.com,1999:blog-2004334878153382863.post-77927737781367655882020-05-14T08:50:00.002-05:002020-05-14T08:58:28.917-05:00Buying a Home During a Pandemic: How Nuts is This? (It isn't)<br />
<h4>
by Michael H. Wasserman</h4>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEheGKFWmfXUGSwjwl_KimTG_NJ1gGnRO9UjsCKsAdXJ3AF2XBd8UoL0pN7NqBYV2WDVYCZ2K0JiGea2_5MPBdHPeKAUz86uc6DzBjzMCTNJTHFa-GR5-5_KNg-AVIGZRYN6DdL3I8OYOd4K/s1600/images+%25282%2529.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="183" data-original-width="275" height="265" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEheGKFWmfXUGSwjwl_KimTG_NJ1gGnRO9UjsCKsAdXJ3AF2XBd8UoL0pN7NqBYV2WDVYCZ2K0JiGea2_5MPBdHPeKAUz86uc6DzBjzMCTNJTHFa-GR5-5_KNg-AVIGZRYN6DdL3I8OYOd4K/s400/images+%25282%2529.jpg" width="400" /></a></div>
<br />
<br />The two-bedroom, Lakeview condo seemed huge when Meg and
Cary first moved in 10 years ago as newlyweds. That was two dogs and two
daughters ago. Before the stay-at-home order. Before COVID-19. The small house
movement may be “a thing,” but Meg and Cary are living proof that small houses
are not all that they are cracked up to be. Especially now that they have all
been cooped up together for the last two months. Every useable surface is
covered by school projects, computer electronics, pet toys, and kid toys. Meg
laughs to herself nervously. “I guess everyone’s home must feel small by now but
there just isn’t enough space here. Is this a dining room or a “school?” Is Cary
working in the living room or his office? Am I sleeping in my bedroom or <i>my</i>
office”? The is once spacious home is getting smaller and smaller by the hour. Hopefully,
Jan will call soon.</div>
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<o:p></o:p></div>
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It’s Monday afternoon and Meg has been trying all day not to
think about it. She cannot help checking her cell phone again (the 10<sup>th</sup>
or 12<sup>th</sup> time in the last hour) looking for a message – any message
from their broker Jan. A call. An email. A text. Freaking smoke signals. Where
are you???? As crazy as it seems, Meg and Cary submitted an offer to buy their
dream home last Friday. Yes, in the midst of the pandemic. They are waiting (impatiently)
for feedback from the Seller. The wait is excruciating. Meg cannot take much
more of this.</div>
<a name='more'></a><o:p></o:p><br />
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For Meg, this really is <i style="mso-bidi-font-style: normal;">the</i>
<i style="mso-bidi-font-style: normal;">house</i>. It was one of the first Meg
asked to see so many months ago. Meg knew from the moment she laid eyes on it.
In fact, of all the 70+ houses Meg and Jan toured before the stay-at-home order,
it remains her favorite. Too expensive back then. It went under contract weeks
ago. Suddenly, it is back on the market. That first buyer got frightened
(didn’t we all?) and walked away. The house is now being offered at a
substantially lower price. It is finally within a range of affordability. Still
a reach for Meg & Cary but it’s manageable. If only Jan would call.<o:p></o:p></div>
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Meg stops obsessing about the house long enough to meet the
delivery man at the door, grab the dinner she ordered for the family and starts
the process of wiping down the delivery boxes. She feels terrible ordering in
again but cannot focus enough to cook with all of the uncertainty right now. Too
much on her mind. Too much to worry about. As she finishes, she sees a new notification
from Jan. “Meg – call me back as soon as you get this. I have some wonderful news.”
Meg calls back. “Good news, they accepted your offer. Super excited, I know how
much you two love this place. There is just one little thing though.” Meg’s
mind races. Jan pauses, and takes an audible breath - “The seller is willing to
accept all of our terms but one – he just won’t make the sale contingent on
selling your condo. They have another offer already as a back-up and he does
not want to risk losing that one either.” Meg’s heart drops to her stomach as Jan
continues, “I know these are difficult times, but I really think that you should
grab this opportunity. Let’s get the paperwork signed in the morning, OK?”<span style="mso-spacerun: yes;"> </span><o:p></o:p></div>
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For Meg, the news is crushing. That “one little thing” is
not so little. They can pull the purchase off if they plan carefully, hold to a
tight budget <i>and </i>sell the condo first. They won’t have the down-payment without
it. Especially now that the market has taken back so much of their savings. If
the deal goes wrong, they certainly can’t afford to lose their earnest money
deposit like Cary’s sister a couple years back. No home is worth that type of
loss. Meg asks herself again, now what do we do?<o:p></o:p></div>
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Their condo is not even listed for sale yet. Meg was too
worried that they would sell without a place to move to. Sure, that made sense
at the time. Now, nothing makes sense.<span style="mso-spacerun: yes;"> </span><o:p></o:p></div>
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Dinner? Meg cannot eat. Sleep? Not tonight. Meg lies awake
worrying about the earnest money, about the condo, about the virus. She loves
the home but is second guessing herself at each turn. Meg’s mind races in a
hundred different directions. Who is going to buy our condo in this market?
What if one of us loses their job? What if one of us gets sick? Can we afford
this if the stock market keeps dropping?<span style="mso-spacerun: yes;">
</span>How can we protect ourselves? <o:p></o:p></div>
<div class="MsoNormal">
Cary worries about the risk too but is more optimistic. Afterall,
this really is the forever house. They will find a way to make things work. He re-assures
Meg. They laugh, thinking they must be nuts to try and pull this off right now.
The timing is crazy. Everything is crazy. But they would be crazy to pass on
this house. <o:p></o:p></div>
<div class="MsoNormal">
In the morning, Meg, Cary and Jan complete the contract
paperwork, start their loan application and activate the condo listing. They will
have six weeks to get the condo sold and closed. Jan tells them it will be
difficult but not impossible. They discuss virtual showings and online
marketing strategy. <o:p></o:p></div>
<div class="MsoNormal">
Jan –good friend that she is, tries to keep Meg upbeat and
laser focused. “First things first hon, <span style="background: yellow; mso-highlight: yellow;">find yourself a really good real estate lawyer. </span>Not
the cheapest off the internet – someone who was active during the last
financial crisis. Someone who understands the risks you are facing. Someone
that can help you craft the best strategies to deal with all of this. Jan
offers Meg a couple of referrals and encourages Meg to ask around herself too. <o:p></o:p></div>
<div class="MsoNormal">
Meg makes the call and hires her lawyer. She pours a cup of
coffee and sits down on the sofa for a short rest. There is a lot of work
ahead, but the lawyer offers a few really good suggestions that put her at
ease. She feels good about the team she has assembled. They have the help they
need to make this dream a reality. They really are going to get the forever
house.<o:p></o:p></div>
<div class="MsoNormal">
We have been representing Chicago area home buyers and
sellers like Meg and Cary for more than 30 years. Client concerns are our
concerns too. We know the ropes, and we are at your service. <o:p></o:p></div>
<br /><div class="blogger-post-footer">
contact michael@mhwasserman.com
visit www.mhwasserman.com
</div>Michael H. Wassermanhttp://www.blogger.com/profile/17542282494747756366noreply@blogger.com0tag:blogger.com,1999:blog-2004334878153382863.post-49053312160205463612020-04-30T18:09:00.002-05:002020-04-30T18:16:53.622-05:00CLOSING TRENDS - What We Lack in Volume, We are Making Up for with Success<br />
<h2>
CLOSING TRENDS - What We Lack in Volume, We are Making Up for with Success</h2>
<div>
<h4>
by Michael H. Wasserman</h4>
</div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEigO0If5vvhZ3N6Do3Qmv45JN-ZzBvBHipIjbdYt8tTYOC9OYiBymeB5l4XcYW9c224TGF5iAM0DGIsfDpoDzn3sywLQvX1nyqdyTmXGBL1BvSnjzcqi9UYSqE1zHqZO-IX6TBtmsnBdtDp/s1600/may-4999078_640.png" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="640" data-original-width="596" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEigO0If5vvhZ3N6Do3Qmv45JN-ZzBvBHipIjbdYt8tTYOC9OYiBymeB5l4XcYW9c224TGF5iAM0DGIsfDpoDzn3sywLQvX1nyqdyTmXGBL1BvSnjzcqi9UYSqE1zHqZO-IX6TBtmsnBdtDp/s320/may-4999078_640.png" width="298" /></a></div>
<div class="MsoNormal">
Our April stay-at-home order ends tonight,
and the May stay-at-home-order starts at midnight. The sequester is dead. Long
live the sequester. Here’s what you need to know about the closing real estate contracts
in Chicago right now.<o:p></o:p></div>
<div class="MsoNormal">
<b>Contract Activity:</b> We are still open for business and
taking in some new really solid purchase and sale transactions (more on that in
a moment). But, as is the case for most of the colleagues I talk to, the numbers
fall far below seasonally appropriate levels. I don’t want to say that its
slow, but birds are building nests on our office printers. (They outgrew their
perches on the typewriter and fax). I’m the new Maytag repairman. Our numbers
are not statistically significant right now, but some intel is available on
Gary Lucido’s <a href="http://www.chicagonow.com/getting-real/2020/04/how-the-chicago-real-estate-market-is-dealing-with-covid-19-week-7/" target="_blank">blog</a> and at <a href="http://cribchatter.com/?p=26836" target="_blank">CribChatter</a>. Both are on my regular reading list. Good
stuff.<o:p></o:p></div>
<div class="MsoNormal">
<br />
<a name='more'></a>About those new contracts. I am taken by the fact that they
are pretty “normal” deals. No short sales. No fire sales. No crazy investors. Fewer
ill prepared first-time buyers. The pandemic’s first weeks brought a lot of
panic into the market. Contracts cancelled left and right. That panic gave way
to a secondary wave of contracts falling apart due to buyer layoffs and job
eliminations. Buyers going under contract now are showing confidence in stable
employment situations and have made peace with the current situation. Sellers are
showing good judgement in price and inspection-related negotiations. We are
closing out attorney review<span style="mso-spacerun: yes;"> </span>and
inspection contingencies on the new deals coming into the office without too
much drama and little delay. We consider this a good sign for increasing market
stability and increased activity in the coming months.<o:p></o:p></div>
<div class="MsoNormal">
There are some other storm clouds forming on the lending horizon
but lenders, for now, are still processing loan applications and funding approved
loans.<o:p></o:p></div>
<div class="MsoNormal">
<b>Closings:</b> Even under the best of circumstances closers work hard and
live with enormous stress. The working conditions have changed dramatically but
they are still showing up for work every day and getting our client deals done.
I cannot fully express my personal appreciation for their collective efforts.
Know that they are working harder than ever before, almost always with a smile
and in good cheer. Really amazing people. Public displays of affection, thank yous and other tokens of appreciation are being rightfully directed towards for hospital workers (my daughter, Jenna among them), grocery store employees and the deliverymen who are helping us get by. </div>
<div class="MsoNormal">
<br /></div>
<blockquote class="tr_bq">
The title companies – and most specifically – their closers are doing yeoman's work that is being grossly unrecognized. They really deserve our thanks and appreciation.</blockquote>
<br />
<div class="MsoNormal">
<o:p></o:p></div>
<div class="MsoNormal">
Different title companies have taken different approaches to
keeping their staffs, us attorneys and home buyers and sellers safe. <span style="mso-spacerun: yes;"> </span>Some have closed their physical offices
altogether and make buyers and sellers sign in advance or out on the street (OK,
in their cars, out on the street). Some are developing robust arrangements for
remote signings. Others not so much. Some still allow table closings. At least
a couple of the smaller agencies have stopped handling closings altogether and
are contracting to their underwriters to handle settlements. <o:p></o:p></div>
<div class="MsoNormal">
Many recent closings have gone decidedly well. Quick, efficient,
pleasant. Still, too many closings going roughly. There are a lot of things that
can – and do – go wrong. Lawyers and lenders who do not answer their phones or
watch for closing related emails slow things down. Lenders deliver too many loan
packages at the last minute. Everything stalls while buyers try to review loan
documents via phone or video with their lawyers. We waste too much time waiting
for lenders to review signed documents and issue funding authorizations.<o:p></o:p></div>
<div class="MsoNormal">
Lenders are still resisting the use of any of the several
emerging “flavors” of remote signings. The state, the title industry, the
lawyers and public at large all want to see this. The lenders are still
dragging their feet here. It is their money. They get to make the rules. I get
to grouse.<o:p></o:p></div>
<div class="MsoNormal">
We expect closing processes to improve in the coming weeks. The
slow-down in new transactions will allow everyone more time to develop their
work-flows and everyone is gaining experience in the new working environment
and many are getting better. Title companies are holding up their end of the closing
bargain. <o:p></o:p></div>
<div class="MsoNormal">
One notable disturbing trend in the closing process – while lenders
continue to prevent borrowers from signing loan documents remotely, at least one
national lender is actively discouraging borrowers giving powers of attorney to
let their lawyers sign loan documents for them. We like this approach as our
clients stay safe, at home, tasking actual document signings to us. We stay
closer to the title company officers and lenders to assure proper supervision
of the closing process. We think these closings are going the easiest and
clients are having the best experiences. <o:p></o:p></div>
<div class="MsoNormal">
Instead, this lender is advocating curbside closings as its preferred
mode of operation. I don’t know about you, but I don’t treat my client’s loans
like fast food cheeseburgers and I just don’t like drive-through closings. At 6’2”
and 220 pounds, my Accord is great for transportation, but no place to sit and
comfortably sign 110 pages of lender paperwork. These may be necessary evils, but
they should be used only when absolutely necessary. Lenders who care about the customer
experience should really reconsider which is the lesser of the two evils here. Of
course, remote online notary would solve both these problems, but as we know,
this is not in the cards. At least now.<o:p></o:p></div>
<br /><div class="blogger-post-footer">
contact michael@mhwasserman.com
visit www.mhwasserman.com
</div>Michael H. Wassermanhttp://www.blogger.com/profile/17542282494747756366noreply@blogger.com0tag:blogger.com,1999:blog-2004334878153382863.post-85912511929360901382020-04-22T13:03:00.000-05:002020-04-22T13:15:22.528-05:00Home Closings During the COVID-19 HEALTH CRISIS<br />
<h4>
by Michael H. Wasserman</h4>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiNJC65KFirYeKQvG_uuBC9svii6QXykAwm2vCkBXmHJQwXZSpCvtu0YqxiII-nYfyD2FKAINFoz7gjsc4hgoyOE8lFQq16qJxp8Ip34K9W1nDtiSFbpJr2BKtzBb0JqCdbwzacJ1iEkHJ6/s1600/images+%25281%2529.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="172" data-original-width="292" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiNJC65KFirYeKQvG_uuBC9svii6QXykAwm2vCkBXmHJQwXZSpCvtu0YqxiII-nYfyD2FKAINFoz7gjsc4hgoyOE8lFQq16qJxp8Ip34K9W1nDtiSFbpJr2BKtzBb0JqCdbwzacJ1iEkHJ6/s1600/images+%25281%2529.jpg" /></a></div>
We are now four full weeks into the
Illinois Stay-at-Home regimen. Hopefully, the last of winter’s snowfalls are finally
behind us. I’m not bike-commuting on the lakefront these days, but the firm is still
actively engaged in real estate transactions. Here is our take on the current
real estate closing landscape and where we think it is heading.<br />
<div class="MsoNormal">
<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
The good news is that (some) buyers are still buying. (Some)
sellers are still selling. Lenders are still lending out (some) money, and Realtors
are still out in the neighborhoods putting contracts together. The firm is still
closing clients’ contracts. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
</div>
<a name='more'></a>The market shrugged off first reports about the corona virus
in January and February. The office was quite busy, and we were hearing many
optimistic reports for a robust spring, even as the global stock markets began
to swoon on February 20<sup>th</sup>. The stock market tanked, and the governor
declared Illinois a disaster area on March 9th. In the two weeks that followed,
stock markets fell hard again on the 12<sup>th, </sup>the state banned large
groups from assembling on the 13<sup>th</sup>, bars and restaurants were closed
as of the 16<sup>th</sup>, and the stay-at-home order was imposed on 20<sup>th</sup>.
<span style="mso-spacerun: yes;"> </span><o:p></o:p><br />
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
That initial wave COVID-19 executive actions and stock
market corrections sent a surging tidal wave of fear and panic thru the hearts
of many home buyers. Hundreds of contracts cancelled. Many buyers cut bait and recouped
earnest money deposits without penalty. A startling number quit their contracts
without legal justification and voluntarily gave up some or all of their earnest
deposits. In some instances, tens of thousands of dollars willingly forfeited. A
smaller number of buyers simply refuse to close or give up their earnest money and
their contracts remain unsettled. Thanks to a lot of hard work from my
associate John Aylesworth and our brokers partners, most all of the contracts
we were working on held together. I really think we did well here, taking time
with each of our clients to make sure they were well informed about their
contract rights, that they understood their options at all times and that they made
good decisions on their deals. In spite of March’s upheavals most all of our client
contracts hung tough and have closed or remain pending.<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
New contract activity hit the brakes hard for us over the
last 30 days. We track new files opened on a weekly basis. I have not seen numbers
this bleak since the <i>last</i> financial melt-down. We know many buyers are side-lined,
unwilling to take the perceived health risks attendant to going out house-hunting
and pending better news from the health authorities. We know many sellers de-listed
or put holds on their marketing efforts. All understandable consequences of the
pandemic. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Clients whose contracts survived the initial panic and clients
presenting new contracts to us are facing two main problems above all others: a
severe tightening in the jumbo mortgage markets and buyer cancellations due to
loss of employment, whether by furlough, termination or businesses that have closed
their doors and turned the lights off for good. It remains an immutable rule in
this business – no job, no income, no mortgage financing. As for jumbo loans, mortgage
lenders facing greater risks and increasing liquidity issues are far less willing
to make large loans these days. This will likely spread to other mortgage
lending niches too. A number of buyers have been able to reconfigure their
financing using co-borrowers, gift funds, family loans and other devices to
overcome changes in lending guidelines. We love finding solutions like these when
problems arise. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Some of our closings over the past month have not be as elegant
as strive for but where there is a will, there is a way. Conveyancing of
properties remains fundamentally the same as it ever was but they ways we accomplish
that conveyancing have evolved quite rapidly. Each lender, each title company,
each municipality, every participant in the closing process has established new
or revised rules and protocols since the virus appeared. These changes are happening
day to day, some better publicized than others. As a result, we in the office are
devoting considerable hours towards keeping up with our service partners to
stay abreast of new developments and analyzing the ways the new rules will impact
our buyers and our sellers. We obsess over contract language and closing
operations for precisely this reason. Our clients deserve and look to us for guidance
and direction in order to make the best of current market conditions.<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
An encouraging number of new opportunities for us so far this
week. The freeze in new contracts seems to be thawing somewhat. Demand is building
among the buyers and brokers we have been speaking to and we expect that more
and more buyers will continue to re-enter the market as weather warms, COVID
stats glide downward, leases end and school years wind down. A window of
opportunity is emerging from which we expect more contracts being signed and in
greater numbers. Still, we remain concerned by the large numbers of newly
unemployed in our community, the risks of virus resurgence and the longer-term
implications for both sellers and buyers. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Again, it bears repeating. With so many changes in lending rules
and guidelines, so many new title company procedures and requirements, and so local
governmental restrictions all resulting from the recent market volatility, health
worries, buyers and sellers need face an increasing number of risks obstacles and
threats to their real estate plans. We understand these challenges. </div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
We know how
much in on the line. We know how important quality legal representation will be
for all Chicagoland home sellers and buyers as we all move forward into the months
ahead.<o:p></o:p></div>
<br /><div class="blogger-post-footer">
contact michael@mhwasserman.com
visit www.mhwasserman.com
</div>Michael H. Wassermanhttp://www.blogger.com/profile/17542282494747756366noreply@blogger.com0tag:blogger.com,1999:blog-2004334878153382863.post-69078657302168725092020-04-15T12:09:00.002-05:002020-04-15T12:09:59.902-05:00ON BUYING A HOME DURING THE COVID-19 PANDEMIC <h2>
<b>OFFER ACCEPTED? NOW WHAT?</b></h2>
<h4>
<b>by Michael H. Wasserman</b></h4>
<div class="MsoNormal">
<b><br /></b></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh4gJRik5wu-OF-dCBfjHADoZVsN_z8vHcKOTGlYOJZvxWypN1Fy15mQDuNovgoezHr4VmVKbhKo_xFNiKqEjr8Y1dciHnS85zt3rDF_2xJWuO4pjB0LYNbOdMKEI1FHoj0EvNeFAMCNZ-x/s1600/images.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="168" data-original-width="300" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh4gJRik5wu-OF-dCBfjHADoZVsN_z8vHcKOTGlYOJZvxWypN1Fy15mQDuNovgoezHr4VmVKbhKo_xFNiKqEjr8Y1dciHnS85zt3rDF_2xJWuO4pjB0LYNbOdMKEI1FHoj0EvNeFAMCNZ-x/s1600/images.jpg" /></a></div>
<div class="MsoNormal">
The two-bedroom, Lakeview condo seemed huge when Meg and
Cary first moved in as newlyweds 10 years ago. That was two dogs and two
daughters ago. Before the stay-at-home order. Before COVID-19. The small house
movement may be “a thing,” but Meg and Cary are living proof that small houses
are not all that they are cracked up to be. Especially now that they have all
been cooped up together for the last three weeks. Every useable surface is
covered by school projects, team equipment, pet toys, and kid toys. Meg laughs
to herself nervously. “I guess everyone’s home must feel small by now but there
just isn’t enough space here. Is this a dining room or a “school?” Is Cary
working in the living room or his office? Am I sleeping in my bedroom or <i>my</i>
office”? The is once spacious home is getting smaller and smaller by the hour. Hopefully,
Jan will call soon.<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
It’s Monday afternoon and Meg has been trying all day not to
think about it. She cannot help checking her cell phone again (the 10<sup>th</sup>
or 12<sup>th</sup> time in the last hour) looking for a message – any message
from their broker Jan. A call. An email. A text. Freaking smoke signals. Where
are you???? As crazy as it seems, Meg and Cary submitted an offer to buy their
dream home last Friday. Yes, in the midst of the pandemic. They are waiting (impatiently)
for feedback from the Seller. The wait is excruciating. Meg cannot take much
more of this. <o:p></o:p><br />
<br />
The stakes are high. We know how the hard waiting can be. We appreciate how much is on the line for our clients when they are buying and selling real estate. </div>
<div class="MsoNormal">
</div>
<a name='more'></a><br />
For Meg, this really is <i style="mso-bidi-font-style: normal;">the</i>
<i style="mso-bidi-font-style: normal;">house</i>. It was one of the first Meg
asked to see so many months ago. Meg knew from the moment she laid eyes on it.
In fact, of all the 70+ houses Meg and Jan toured before the stay-at-home order,
it remains her favorite. Too expensive back then. It went under contract weeks
ago. Suddenly, it is back on the market. That first buyer got frightened
(didn’t we all?) and walked away. The house is now being offered at a
substantially lower price. It is finally within a range of affordability. Still
a reach for Meg & Cary but it’s manageable. If only Jan would call.<br />
<div class="MsoNormal">
<o:p></o:p></div>
<div class="separator" style="clear: both; text-align: center;">
<br /></div>
<div class="MsoNormal">
Meg stops obsessing about the house long enough to meet the
delivery man at the door, grab the dinner she ordered for the family and starts
the process of wiping down the delivery boxes. She feels terrible ordering in
again but cannot focus enough to cook with all of the uncertainty right now. Too
much on her mind. Too much to worry about. As she finishes, she sees a new notification
from Jan. “Meg – call me back as soon as you get this. I have some wonderful news.”
Meg calls back. “Good news, they accepted your offer. Super excited, I know how
much you two love this place. There is just one little thing though.” Meg’s
mind races. Jan pauses, and takes an audible breath - “The seller is willing to
accept all of our terms but one – he just won’t make the sale contingent on
selling your condo. They have another offer already as a back-up and he does
not want to risk losing that one either.” Meg’s heart drops to her stomach as Jan
continues, “I know these are difficult times, but I really think that you should
grab this opportunity. Let’s get the paperwork signed in the morning, OK?”<span style="mso-spacerun: yes;"> </span><o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
For Meg, the news is crushing. That “one little thing” is
not so little. They can pull the purchase off if they plan carefully, hold to a
tight budget <i>and </i>sell the condo first. They won’t have the down-payment without
it. Especially now that the market has taken back so much of their savings. If
the deal goes wrong, they certainly can’t afford to lose their earnest money
deposit like Cary’s sister a couple years back. No home is worth that type of
loss. Meg asks herself again, now what do we do?<o:p></o:p></div>
<div class="MsoNormal">
Their condo is not even listed for sale yet. Meg was too
worried that they would sell without a place to move to. Sure, that made sense
at the time. Now, nothing makes sense.<span style="mso-spacerun: yes;"> </span><o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Dinner? Meg cannot eat. Sleep? Not tonight. Meg lies awake
worrying about the earnest money, about the condo, about the virus. She loves
the home but is second guessing herself at each turn. Meg’s mind races in a
hundred different directions. Who is going to buy our condo in this market?
What if one of us loses their job? What if one of us gets sick? Can we afford
this if the stock market keeps dropping?<span style="mso-spacerun: yes;">
</span>How can we protect ourselves? <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Cary worries about the risk too but is more optimistic. Afterall,
this really is the forever house. They will find a way to make things work. He re-assures
Meg. They laugh, thinking they must be nuts to try and pull this off right now.
The timing is crazy. Everything is crazy. But they would be crazy to pass on
this house. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
In the morning, Meg, Cary and Jan complete the contract
paperwork, start their loan application and activate the condo listing. They will
have six weeks to get the condo sold and closed. Jan tells them it will be
difficult but not impossible. They discuss virtual showings and online
marketing strategy. <o:p></o:p></div>
<div class="MsoNormal">
Jan –good friend that she is, tries to keep Meg upbeat and
laser focused. “First things first hon, <span style="background: yellow; mso-highlight: yellow;">find yourself a really good real estate lawyer. </span>Not
the cheapest off the internet – someone who was active during the last
financial crisis. Someone who understands the risks you are facing. Someone
that can help you craft the best strategies to deal with all of this. Jan
offers Meg a couple of referrals and encourages Meg to ask around herself too. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Meg makes the call and hires her lawyer. She pours a cup of
coffee and sits down on the sofa for a short rest. There is a lot of work
ahead, but the lawyer offers a few really good suggestions that put her at
ease. She feels good about the team she has assembled. They have the help they
need to make this dream a reality. They really are going to get the forever
house.<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
We have been representing Chicago area home buyers and
sellers like Meg and Cary for more than 30 years. Client concerns are our
concerns too. We know the ropes, and we are at your service.</div>
<div class="blogger-post-footer">
contact michael@mhwasserman.com
visit www.mhwasserman.com
</div>Michael H. Wassermanhttp://www.blogger.com/profile/17542282494747756366noreply@blogger.com0tag:blogger.com,1999:blog-2004334878153382863.post-74146405900480970032020-03-29T12:26:00.002-05:002020-03-29T12:26:43.824-05:00UPDATE: ILLINOIS REMOTE ONLINE NOTARIZATION? NOT SO FAST!<h4>
UPDATE: ILLINOIS REMOTE ONLINE NOTARIZATION? NOT SO FAST!<br />by Michael H. Wasserman</h4>
<div>
<div class="MsoNormal">
A follow up on last Friday’s posting. This is going to be a bit
of a bummer.</div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhSJYjxg7WDPzhJIk8n8C3yU8Yr4KRPFXpXay0UKcoegCNqoH9Ng1mO2F8BAcjykWrQ-QNYq4SW482McaOKMivdQWwWCQW-n_9vRPrm8D3ZtyK2tL6YhlXN6qtr8MHiwHcVtaDweeg3hAkz/s1600/oh+no.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="683" data-original-width="1024" height="213" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhSJYjxg7WDPzhJIk8n8C3yU8Yr4KRPFXpXay0UKcoegCNqoH9Ng1mO2F8BAcjykWrQ-QNYq4SW482McaOKMivdQWwWCQW-n_9vRPrm8D3ZtyK2tL6YhlXN6qtr8MHiwHcVtaDweeg3hAkz/s320/oh+no.jpg" width="320" /></a></div>
<br />
<b>Just because RON is legal does not mean that we will be able to use it</b>. For all the State’s efforts to minimize public health risks
associated in-person document signings, title companies and mortgage lenders just
are not yet willing or able to accept Illinois RON signings. For the time being,
we will still need buyers to sign loan documents in the actual physical presence
of notaries. <br />
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
</div>
<a name='more'></a>Governor Pritzker has issued a series of emergency orders in
connection with the current COVID-19 health crisis. Last Thursday afternoon, he
authorized the use of remote online notarization (RON) to help citizens get vital
legal documents witnessed during the pandemic emergency. This action is
critical to home buyers and sellers and to others constrained by health considerations
and the general stay-at-home order. We all recognize the importance of personal
distancing to minimize and hopefully avoid risks of infection and transmission.
We want, to eliminate all un-necessary contact with others to limited contagion
and to preserve health. RON can help us get necessary closing documents signed
without direct contact. The benefit of RON signings cannot be over-stated. <o:p></o:p><br />
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
I have been in touch with several mortgage loan officers and
title company legal counsel since Thursday’s announcement to better understand
the process and the likely impact RON will have on our client closings in the
coming weeks and months. The bottom-line message is clear. <b>The State acted swiftly
and decisively to help keep real estate contracts closing, safely. Lenders and
title companies are not ready to abide.</b> <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Some background context is in order. First, the national trend
favors increased RON usage. RON acceptance in Illinois was inevitable even
before the COVID-19 crisis. 22 states have already codified its use. Passage of
<a href="http://www.ilga.gov/legislation/billstatus.asp?DocNum=3698&GAID=15&GA=101&DocTypeID=SB&LegID=125690&SessionID=108" target="_blank">SB3698 </a>will add Illinois to that list. That bill is currently pending in the Illinois
Senate Judiciary Committee. Illinois joined six other states who will allow RON
on a temporary or emergency basis. Emergency legislation is pending at the
federal level too. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
So, what’s the problem? The emergency order establishes a
quick and easy path to implement RON but the title insurance companies
are demanding stronger safeguards in the RON process. The permanent Illinois
legislation will almost certainly address those desired safeguards and we are
talking here about an emergency, interim solution. Sorry. Not good enough. <o:p></o:p></div>
<div class="MsoNormal">
</div>
<ul>
<li>The emergency order rightly requires that notaries confirm the
identity of anyone signing documents remotely. Opponents want more: mandatory multi-factor
identification procedures.</li>
<li>The emergency order requires that RON signings take place using
online tele-conferencing with video and audio recordings. Zoom, FaceTime, Skype
GoToMeeting and other platforms can easily facilitate these requirements.
Opponents assert that none sufficiently protect them from fraudsters and seek
better encrypted/secured environments. </li>
<li>Finally, the emergency order requires that a notary retain
those recordings for at least three years. Opponents warn that such recordings must
be stored in secure/encrypted environments too in order to guard against video
tampering or editing.</li>
</ul>
<br />
<div class="MsoNormal">
<o:p></o:p></div>
<div class="MsoNormal">
Each mortgage lender seems to be developing its’ own procedures for RON signings too. </div>
<div class="MsoNormal">
<a href="https://www.alta.org/news/news.cfm?20200324-Fannie-Mae-Guidance-on-Acceptance-of-Remote-Online-Notarization" target="_blank">FannieMae </a>has issued guidance to allow <i>some</i> RON
signings from some approved vendors such as <a href="https://www.google.com/url?q=https%3A%2F%2Fwww.docverify.com%2FProducts%2FE-Notaries%2FHow-to-become-an-e-notary-or-remote-online-notary&sa=D&sntz=1&usg=AFQjCNFBRBadWv46788rOIbi2c7ZerXkQw" target="_blank">DocVerify</a>, <a href="https://www.google.com/url?q=https%3A%2F%2Fwww.nexsystech.com%2Fclear-sign%2F&sa=D&sntz=1&usg=AFQjCNEqzS7GMdMWtbrFfx-HjN_TCybOvQ" target="_blank">Nexsys</a>, <a href="https://www.google.com/url?q=https%3A%2F%2Fwww.notarize.com%2Fremote-online-notarization&sa=D&sntz=1&usg=AFQjCNEcpxRS-tOGbKaF_1CruuP3bsnv_g" target="_blank">Notarize</a>, <a href="https://www.google.com/url?q=https%3A%2F%2Fwww.notarycam.com%2F&sa=D&sntz=1&usg=AFQjCNHX-AN2CfwzWM1fzTQYBcH6hNAk2w" target="_blank">NotaryCam</a>, and <a href="https://www.google.com/url?q=https%3A%2F%2Fpavaso.com%2Fron%2F&sa=D&sntz=1&usg=AFQjCNGGIi4nsxZeu1wYtp8dDBcGr4OTlA" target="_blank">Pavaso</a>. . <a href="https://www.gopennymac.com/announcements/20-12-announcement-03-23-2020" target="_blank">PennyMac</a> is not allowing any. Wells Fargo is reportedly a no-go. To the extent that lenders and title
companies allow RON signings, they will only be allowed thru specific approved
RON platforms.This too creates problems for swift implementation. </div>
<div class="MsoNormal">
</div>
<ul>
<li>Not all lenders are agreeing on the same vendors The Venn diagram between
title companies, lenders and vendors will be pretty convoluted. Buyers and sellers
may get pressured into working with one title company or another in order to accommodate
the RON vendor required by any given lender.</li>
<li>Title companies have few or no relationships with the
several approved RON vendors. No one expected the COVID-19 crisis so title companies are
racing to “catch-up” and establish relations with those approved vendors, in
hopes that they will be able to scale up quickly to meet the new demand for
their services.</li>
<li>Those approved RON vendors themselves are staffed to accommodate the states where RON is fully approved
and are all racing to scale up to meet the new demand.</li>
<li>The Illinois emergency order requires <u>the notary and
the customer must both be physically present in the State of Illinois at the time
the remote notarization is performed</u>. However, to the best of my knowledge, <u>none
of the major platforms employ Illinois based notaries</u>. Why would they? Until
last Thursday afternoon, RON was not recognized here. This seems to align with Fannie guidelines.Title company
representatives I spoke to last week hope to work around this limitation relying on language in the <a href="http://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=2137&ChapterID=62" target="_blank">Illinois Conveyances Act</a> that recognized of out of state notarizations. </li>
</ul>
<br />
<div class="MsoNormal">
<o:p></o:p></div>
<div class="MsoNormal">
Finally, nobody has heard from the Cook County
Recorder of Deeds or as near as I can see, from any other county recorder’s
office. The emergency order mandates that they accept RON-signed documents. Will they? Time will tell.<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
This is an emergency situation for the rest of us. These
financial institutions are not prepared to relax standards in the face of the
emergency. In the meantime, we will all continue to take otherwise unnecessary risk
and we will wait.</div>
</div>
<div class="blogger-post-footer">
contact michael@mhwasserman.com
visit www.mhwasserman.com
</div>Michael H. Wassermanhttp://www.blogger.com/profile/17542282494747756366noreply@blogger.com0tag:blogger.com,1999:blog-2004334878153382863.post-89423944362004695262020-03-27T07:36:00.002-05:002020-03-27T08:50:58.520-05:00REMOTE ONLINE NOTARIZATION APPROVED FOR ILLINOIS<h4>
REMOTE ONLINE NOTARIZATION APPROVED FOR ILLINOIS</h4>
<h4>
By Michael H. Wasserman</h4>
<div class="separator" style="clear: both; text-align: center;">
</div>
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgtr8vskK9_5s_tuRmh0wKPec7TDvtrRFRYBXesSIMocqOMFojHAh2nHJSjrZlRqt1iCXOeT1Ae0ICXtPV-dyue7bZLskz8m4Y2vgi74-IU3H50A8HHz0cbLbqPpQyTHUcFgZgHSOzLaOh7/s1600/Illinois+Remote+Notary+Executive+Order.png" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img alt="" border="0" data-original-height="762" data-original-width="1600" height="152" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgtr8vskK9_5s_tuRmh0wKPec7TDvtrRFRYBXesSIMocqOMFojHAh2nHJSjrZlRqt1iCXOeT1Ae0ICXtPV-dyue7bZLskz8m4Y2vgi74-IU3H50A8HHz0cbLbqPpQyTHUcFgZgHSOzLaOh7/s320/Illinois+Remote+Notary+Executive+Order.png" title="Illinois Remote Notary Executive Order March 27 2020" width="320" /></a>With the stroke of his pen, Governor Prtizker eased one of the biggest logistical challenges for client real estate closings since the COVID-19 emergency was declared nearly three weeks ago.<br />
<br />
<a href="https://www.cyberdriveillinois.com/departments/index/notary/executiveorder2020-14.pdf" target="_blank">Executive Order 12</a> allows for remote online notarization. My firm is prepared and ready to utilize this tool now. (Technology, for the win!)<br />
<br />
Deeds, mortgages and many other documents used in real estate closings must be witnessed by an <a href="https://www.cyberdriveillinois.com/departments/index/notary/home.html" target="_blank">Illinois licensed notary</a>. The ink-signed, original document has always been—and will continue to be—required for real estate closings. This poses a great difficulty:<br />
<br />
The notary and signer have to be in the same place, at the same time for the notary’s attestation to be valid. Shelter-in-place rules, best health-safety practices and overall concern of spreading COVID-19 make that unacceptable to many, undesirable to all, and impossible for some. Law firms and title companies have been using “drive-by” or curb-side signings to minimize contact, but that is, at best, an inelegant solution.<br />
<br />
<b>Executive Order 12 allows even greater health protection for everyone involved</b>. Notaries must still witness signings in real time; but can now do so from remote locations. The list of legal requirements is long, yet my firm has the tools and the system in place to accommodate. The arena has changed, as have the rules of engagement, but we are still running business as usual. Please contact us if you would like to know more, or if you need our notary services during this crisis period.<br />
<br />
A final note, the entire country is looking for a path to restart the economy without leaving home. Technology like this proves that it’s possible.<br />
<div>
<br /></div>
<div class="blogger-post-footer">
contact michael@mhwasserman.com
visit www.mhwasserman.com
</div>Michael H. Wassermanhttp://www.blogger.com/profile/17542282494747756366noreply@blogger.com0tag:blogger.com,1999:blog-2004334878153382863.post-89915733656949102012020-03-22T15:30:00.003-05:002020-03-27T08:13:03.303-05:00What You Need to Know Now about Home Closings in the Era of COVID-19 <br />
<h2>
<br />COVID-19 Home Closing Outlook – Week of March 23rd, 2020</h2>
<div class="MsoNormal">
By Michael H. Wasserman</div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgmRITiObvBbmr8Q9oZ51FHBmH6jstML0251-9-6anG2H-oyXRA3ai5jRBIe05wrExucgQ0nKoUuon-aQmSxll2oQqMstCAld6DgFmSIztjnHmTqJOh52bocEq0DzKhg6Dsn9Sxj0j39_Sp/s1600/4747051806_b2181a36dc.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="266" data-original-width="300" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgmRITiObvBbmr8Q9oZ51FHBmH6jstML0251-9-6anG2H-oyXRA3ai5jRBIe05wrExucgQ0nKoUuon-aQmSxll2oQqMstCAld6DgFmSIztjnHmTqJOh52bocEq0DzKhg6Dsn9Sxj0j39_Sp/s1600/4747051806_b2181a36dc.jpg" style="cursor: move;" /></a>Need some not-so bad news? Real estate closings will
continue for the foreseeable future. Governor Pritzker's <a href="https://www2.illinois.gov/IISNews/21288-Gov._Pritzker_Stay_at_Home_Order.pdf" rel="nofollow" target="_blank">shelter-in-place order</a> designates lenders, title companies, and lawyers all “essential.” This
means my firm and I remain available and at the ready assist with real estate
purchases and sales.</div>
<div class="MsoNormal">
<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
We are working closely with title companies and colleagues
to implement and execute safety protocols so that we can all minimize contact
among the many, many hands that touch each transaction. The title industry has
been quick to urge reducing number of people in their facilities, disinfecting
offices, providing hand sanitizer, fresh pens and encouraging as much remote
work as possible. We support and appreciate their efforts (and provide our own
pens to clients too).<o:p></o:p></div>
<div class="MsoNormal">
<br />
Do you have a closing coming up? Here are our latest
guidelines:<o:p></o:p><br />
<br />
<a name='more'></a><br />
<div class="MsoNormal">
1. <b>No friends,
family or guests</b>. If you do not absolutely have to attend a closing, please do
not. Real estate agents, loan officers, friends and family, normally welcome
guests at a closing table are kindly asked not to. <o:p></o:p></div>
<div class="MsoNormal">
2. <b>Sellers need
not attend</b>. Sellers can pre-sign all closing documents to avoid in person
attendance. Our firm has always offered clients this service. We make sure that
all paperwork is ready in advance and that all proceeds of sale are delivered
promptly upon consummation of the closing. <o:p></o:p></div>
<div class="MsoNormal">
3. <b>Sellers’
attorneys do not need to attend either</b>. Sellers’ attorneys can deliver
documents to the title company before the closings using overnight delivery
service, or by curbside drop off. Historically, we have prided ourselves in
personal attendance at our seller closings, but for the time being we will
refrain where-ever possible<br />
4. <b>Buyers
should avoid closings too, using powers of attorney instead</b>. Buyers are
encouraged to give their real estate lawyers power of attorney to sign
loan/closing documents in their stead and so that they do not have to attend in
person. <b>Our office will help coordinate powers-of-attorney with your lenders.
</b>This is a service we regularly provide.</div>
<div class="MsoNormal">
5. <b>Title companies are closing some local offices.</b> Not all branch locations are going to be available. Some are closing due to local ordinances. Others by orders of building management. We may not be able to close at the title office closest to the property (or the parties).</div>
<h3>
SELLERS, here are some issues we
anticipate for you:</h3>
<div class="MsoNormal">
<o:p></o:p></div>
<div class="MsoNormal">
</div>
<ul>
<li>Notarization needs to be done in person. Illinois
transactions require original “ink-signed” deeds. That document must be
notarized. (Please see our 3/27/2020 <a href="https://wasserblawg.blogspot.com/2020/03/remote-online-notarization-approved-for.html" target="_blank">update on remote notarization</a>!)</li>
<ul>
<li><div class="MsoNormal">
Notarization still require in-person signing before a notary.</div>
</li>
<li><div class="MsoNormal">
Remote online notarization is an emerging technology but is not yet valid in Illinois. Pending State and Federal legislation may change that, but for now, this is not an option.</div>
</li>
<li><div class="MsoNormal">
Docu-sign and other online secured signatures are the same and (sorry) not good enough.</div>
</li>
<li><div class="MsoNormal">
Mobile notary services exist, but it is unclear whether they are considered “essential” services and will travel to client locations at this time.</div>
</li>
<li><div class="MsoNormal">
Important: <b>not all notaries will witness deeds</b>—even in normal circumstances. (They are wrong to refuse, but that is a rant for another day). Sellers should confirm that their notary provides this service before they leave the house.</div>
</li>
<li><div class="MsoNormal">
<b><span style="font-family: "garamond" , serif; font-size: 12.0pt;">Please contact us if you need
help working through any of these issues</span></b></div>
</li>
</ul>
<li>Municipal requirements might be difficult to complete. Many
municipalities require payment of final water bills and/or transfer taxes.
Others require zoning certifications or building department inspections. As
local governments shut or limit operations, it may not be possible to comply
with these requirements. Alternatively, delivery of these services may be
slowed considerably, and closing dates may be compromised.</li>
</ul>
<h3>
<b>BUYERS can anticipate some issues as well:</b></h3>
</div>
<div class="MsoNormal">
<div class="MsoNormal">
</div>
<ul>
<li><b>Final walk-throughs may be difficult</b>. Buyers are entitled to
a final, pre-closing walk-through of the home they are buying to ensure the
property is conveyed in an undamaged condition.</li>
<ul>
<li>There do not seem to be exceptions in the shelter-in-place
Executive Order to permit final walk-throughs.</li>
<li>Buyers may also be concerned about unknown contaminations
inside the property being conveyed.</li>
<li>Sellers may also be concerned about the health status of
people entering homes for a walk-through.</li>
<li>Realtors may need to conduct these appointments for their
clients–and may take on risk of dis-pleasure or liability for failing to
appreciate deficiencies that should have been spotted.</li>
</ul>
<li><b>Not all Buyers will be comfortable providing power of
attorney.</b></li>
<ul>
<li>Attorneys for buyers who need or strongly wish to attend
closings in person have been asked to use telephone or video conferencing to
counsel clients from a distance. Our firm works remotely on a regular basis. We
have an arsenal of tools we use to do so, including conferencing services but,
it will expect challenges here too. Not all law firms or lenders or title
companies have comparable (or compatible) tools and/or technical competency.</li>
<ul>
<li><b>For now, we recommend using powers of attorney wherever
possible.</b></li>
<li>We can and will guide clients through the closing process
with easy-to-use remote conferencing technology.</li>
<li><b>We can, where necessary, attend purchase closings in person
with clients who desire that we do so.</b></li>
</ul>
</ul>
<li><b>Some buyers may face furlough, loss of income,
unemployment or illness</b>. Ill-timed job losses and job furloughs may cause some
mortgage lenders to withdraw or revoke loan approvals on the eve of closing.
Some buyers’ closings may need to be delayed. Some defaults will be inevitable.</li>
</ul>
We continue to navigate these uncharted seas with and for our
clients. We are engaged in ongoing conversations with our title companies,
lenders, brokers partners and our colleagues, on the alert for changes that may
affect clients both buyers and sellers. We stand ready to advise our clients
how to best move forward and we will provide updates to all as we do so.<br />
<o:p></o:p></div>
<div class="MsoNormal">
Stay healthy. Stay safe.<br />
<o:p></o:p></div>
<br /><div class="blogger-post-footer">
contact michael@mhwasserman.com
visit www.mhwasserman.com
</div>Michael H. Wassermanhttp://www.blogger.com/profile/17542282494747756366noreply@blogger.com0tag:blogger.com,1999:blog-2004334878153382863.post-13778135346273629812020-03-15T10:34:00.002-05:002020-03-15T10:34:16.704-05:00Covid-19 Update<div style="font-family: Arial, sans-serif; font-size: 13.3333px;">
Covid-19 Update</div>
<div style="font-family: Arial, sans-serif; font-size: 13.3333px;">
<br /></div>
<div style="font-family: Arial, sans-serif; font-size: 13.3333px;">
Date: March 15, 2020<br /><br /></div>
<div style="font-family: Arial, sans-serif; font-size: 13.3333px;">
The news over recent weeks has been startling and of great concern to us all. Following the President’s declaration of a national health emergency and the Governor’s executive order to combat continued spread of Covid-19, I would like you to know the steps that we are taking to protect your health and the health of our team, our partners, and colleagues.</div>
<div style="font-family: Arial, sans-serif; font-size: 13.3333px;">
<br /></div>
<div style="font-family: Arial, sans-serif; font-size: 13.3333px;">
Let me reassure you there will be no disruption to our services. Michael H. Wasserman PC continues to be fully operational. We long ago invested in the technologies necessary to work remotely. These systems enable the entire law firm to work from anywhere and most of us do so to one extent or another already. We are able to receive mail and packages as usual, however, with limited exceptions. we are permitting only employees and necessary contractors to enter our offices for the time being. We are taking these steps to protect the health of our clients, team and colleagues. To reiterate, there should be no change in our availability or our level of service.</div>
<div style="font-family: Arial, sans-serif; font-size: 13.3333px;">
<strong><br /></strong></div>
<div style="font-family: Arial, sans-serif; font-size: 13.3333px;">
<strong>To our clients who have upcoming closings</strong>: We expect that closings will continue as scheduled and without interruption. We will be in touch with each of you directly to discuss you how your situation will be handled, especially if health conditions worsen or travel restrictions imposed.</div>
<div style="font-family: Arial, sans-serif; font-size: 13.3333px;">
If you are symptomatic for Covid-19, or just plain don't feel well, or do not want to travel to a title company closing location, <u>you should not do so</u>.</div>
<div style="font-family: Arial, sans-serif; font-size: 13.3333px;">
<strong><br /></strong></div>
<div style="font-family: Arial, sans-serif; font-size: 13.3333px;">
<strong>Home sellers</strong>: We encourage you to pre-sign closing documents and deliver them to us so that you do not need to attend a closing. Remote online notarization is not yet sanctioned so you will need to interact with a notary to execute your closing documents. We can and will meet you in our office (by appointment) to sign documents or can assist you in arranging for a mobile notary to meet you elsewhere.</div>
<div style="font-family: Arial, sans-serif; font-size: 13.3333px;">
<strong><br /></strong></div>
<div style="font-family: Arial, sans-serif; font-size: 13.3333px;">
<strong>Home buyers</strong>: Buyers are normally expected to attend closings in person. The title companies are working hard to implement health safety measures for their office suites, but it is understandable if you do not want to expose yourself to such highly trafficked office buildings. To the extent that your mortgage lender will allow, we are able to sign loan documents for you by <strong>power of attorney</strong>. We can help coordinate this with lenders and can prepare the necessary paperwork for you to do so.</div>
<div style="font-family: Arial, sans-serif; font-size: 13.3333px;">
<br /></div>
<div style="font-family: Arial, sans-serif; font-size: 13.3333px;">
Please reach out to us with any questions you may have. We look forward to continuing to serve you. The entire team hopes you and your families stay safe and wishes you continued good health.</div>
<div class="blogger-post-footer">
contact michael@mhwasserman.com
visit www.mhwasserman.com
</div>Michael H. Wassermanhttp://www.blogger.com/profile/17542282494747756366noreply@blogger.com0tag:blogger.com,1999:blog-2004334878153382863.post-73556168082245845532019-01-15T11:47:00.004-06:002019-01-16T13:54:48.270-06:00Do I HAVE to pay income taxes?By Michael H. Wasserman<div>
<br /></div>
<div>
It’s our most annoying obligation as Americans. How many of us have thought about not paying taxes?<div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhuxL2NS-9ZhpokRvjI7pToB63rnpUJPISV8RLyzeEuh3YFTO7tFYjh1ar53eknJUp5a-0IFpfqbzNi3ME087Nluxc-juWRteEssUgq2DXSpz1BLmWSY2283bREuoWWPcp1TUV-t6Sa7BLj/s1600/Do+I+have+to+pay+my+taxes.png" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="456" data-original-width="1032" height="141" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhuxL2NS-9ZhpokRvjI7pToB63rnpUJPISV8RLyzeEuh3YFTO7tFYjh1ar53eknJUp5a-0IFpfqbzNi3ME087Nluxc-juWRteEssUgq2DXSpz1BLmWSY2283bREuoWWPcp1TUV-t6Sa7BLj/s320/Do+I+have+to+pay+my+taxes.png" width="320" /></a></div>
<br />
As a real estate attorney, the heart of my work is asking good questions. Larry Williams asked a whopper…and then acted upon it. <a href="https://www.npr.org/sections/money/2018/04/04/599607108/episode-685-larry-vs-the-irs">Here’s what happens when you don’t pay income taxes</a>. Fair warning, it’s a podcast.</div>
<div>
<br />
Thanks to my daughter (who also asks good questions), for sending me this memorable Planet Money podcast last year. </div>
<div>
<br /></div>
<div>
And before you ask; the answer is no. You can’t sell or buy real estate if you’ve haven’t paid your income taxes. </div>
<div>
<br /></div>
<div>
<br /></div>
</div>
<div class="blogger-post-footer">
contact michael@mhwasserman.com
visit www.mhwasserman.com
</div>Michael H. Wassermanhttp://www.blogger.com/profile/17542282494747756366noreply@blogger.com0tag:blogger.com,1999:blog-2004334878153382863.post-36966908520299425342019-01-13T12:07:00.000-06:002019-01-13T12:07:24.777-06:00In the news: Relief for the mortgage biz during shutdownBy Michael Wasserman<br />
<br />
Whew. Real estate buyers, sellers and professionals all exhaled with relief last Friday. After lobbying from the mortgage industry, the Treasury Department has deemed Internal Revenue Service clerks (who process lending forms) as "essential" employees. Which means they can get back to work.<br />
<br />
Whether you think records clerks are essential or not, at least the government shut down won’t delay loan approvals or closings.<br />
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Learn more:<br />
<a href="https://www.washingtonpost.com/politics/could-you-make-these-guys-essential-mortgage-industry-gets-shutdown-relief-after-appeal-to-senior-treasury-officials/2019/01/11/9071e9d8-152c-11e9-90a8-136fa44b80ba_story.html?noredirect=on&utm_term=.d000ba14d3dc&wpisrc=nl_most&wpmm=1" target="_blank">‘Could you make these guys essential?’: Mortgage industry gets shutdown relief after appeal to senior Treasury officials</a><div>
<a href="https://www.latimes.com/business/la-fi-mortgage-industry-shutdown-20190111-story.html" target="_blank">Mortgage industry gets shutdown relief after appeal to senior Treasury officials</a><div>
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<div class="blogger-post-footer">
contact michael@mhwasserman.com
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</div>Michael H. Wassermanhttp://www.blogger.com/profile/17542282494747756366noreply@blogger.com0tag:blogger.com,1999:blog-2004334878153382863.post-410269098540968922019-01-13T08:00:00.000-06:002019-01-16T13:52:48.792-06:00In the news: Investing in Chicago's gentrifying neighborhoodsBy Michael H. Wasserman<br /><br />Chicago is an ever-changing demographic kaleidoscope. Ethnic migrations, land-use transformations, and varying degrees of economic prosperity all stir the real estate pot and eventually touch every corner of the city.<br />
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<tr><td class="tr-caption" style="text-align: center;"><span style="font-size: xx-small;">Chicago real estate investors are always looking for up-and-coming neighborhoods.</span></td></tr>
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So, how does a home buyer or real estate investor know where to find the best opportunities for property appreciation in Chicago?<br />
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Three recent articles offer some perspective and guidance.<br />
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1. Gary Lucid offered a <a href="http://www.chicagonow.com/getting-real/2019/01/chicago-gentrification-trends-flag-best-real-estate-returns/">great spin </a>on DePaul University’s recent study of resident displacement caused by gentrification (“housing affordability pressure”). Can tracking the outflow of poorer residents due to gentrification predict areas likely to appreciate? Cool interactive maps too boot! <br />
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2. An unexpected (by me anyway) <a href="https://news.wttw.com/2019/01/04/chicago-s-divvy-divide-convenient-bike-share-program-or-sign-gentrification">WTTW review </a>of a Northwestern University study about Divvy bike rentals. It seems that locals in Humboldt Park and other neighborhoods negatively associate the big blue bikes with (unwanted) displacement-causing gentrification. <br />
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Whatever you think of Divvy bikes, this begs the question: are new Divvy station installations an indicator of up-and-coming areas? <br />
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3. Now that you know where to look, know that Fannie Mae and FreddieMac are both ready for the spring market with conventional 95-97% loan products branded as Home Ready and Home Possible, respectively. Check out <a href="https://www.loopnorth.com/news/loan0103.htm">Don DeBat’s summary</a> of these new programs. <br />
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Our real estate law firm represents buyers and sellers of home and investment properties in all Chicago neighborhoods. We work with some great realtors and loan officers who can help you find real estate opportunities and financing options, too.<br />
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Learn more:<br />
<a href="http://www.chicagonow.com/getting-real/2019/01/chicago-gentrification-trends-flag-best-real-estate-returns/">Chicago Gentrification Trends Flag Best Real Estate Returns</a><br />
<a href="https://news.wttw.com/2019/01/04/chicago-s-divvy-divide-convenient-bike-share-program-or-sign-gentrification">Chicago’s Divvy Divide: Convenient Bike-Share Program or Sign of Gentrification?</a><br />
<a href="https://www.loopnorth.com/news/loan0103.htm">House hunters can utilize loan programs to buy with 3 to 5 percent down</a></div>
<div class="blogger-post-footer">
contact michael@mhwasserman.com
visit www.mhwasserman.com
</div>Michael H. Wassermanhttp://www.blogger.com/profile/17542282494747756366noreply@blogger.com0tag:blogger.com,1999:blog-2004334878153382863.post-82840221688653800972019-01-07T14:31:00.001-06:002019-01-16T13:53:06.886-06:00Avoiding drama at the final walk through<table cellpadding="0" cellspacing="0" class="tr-caption-container" style="float: right; margin-left: 1em; text-align: right;"><tbody>
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<tr><td class="tr-caption" style="text-align: center;"><span style="font-size: xx-small;"><span style="text-align: start;">R</span><span style="text-align: start;">emember to make a walk-through checklist </span></span></td></tr>
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By Michael H. Wasserman<br /><br />
In real estate, one would think a final pre-closing walk through is pretty straightforward:<br />
<ul>
<li>Is the house still standing? Check </li>
<li>Are the sellers belongings removed? Check </li>
<li>Are the shower heads and appliances still in place? Check Check </li>
<li>Are there new holes in the walls or broken windows? Check Check</li>
</ul>
<b>Yet our law firm sees SO MUCH 11th hour drama </b><br />
<ul>
<li>Locked storage rooms that could not examined </li>
<li>Crawlspaces that were not cleaned out </li>
<li>Broken washing machines </li>
<li>Backed up plumbing </li>
<li>Missing mailbox keys</li>
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We saw all of these—and more—last year. These pain points inflame the furies of already stressed out clients.<br />
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Let me suggest that we haven't been taking walk throughs seriously enough. Buyers call me with post-closing and at-closing problems that could have been avoided. They are never happy calls. Some end better than others.<br />
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<b>I’m increasingly in favor of having the final walk thru <u>the day before </u>closing and not the <u>day of</u> closing. </b>This allows time to identify problems; and gives sellers and attorneys more time to address issues before closing. The logistics may not work out for all deals; yet allowing sufficient time to act has become a luxury few are willing to allow themselves.<br />
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That said, here are two pre-closing checklists I’d like to see brokers and buyers complete to avoid last-minute drama.<br />
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<b>During buying process</b><br />
<ul>
<li>Go on record with the listing broker to make sure that keys for all locks are available</li>
<li>Ensure seller has identified the location of any condo common area storage and /or mailboxes</li>
<li>Confirm how ALL property keys will be delivered—or where they will be located</li>
<li>Confirm the number of key fobs, garage transmitters, and parking passes</li>
</ul>
<b>On the final walk through</b><br />
<ul>
<li>Look in every closet and storage space</li>
<li>Open and close every door</li>
<li>Run every appliance (even the furnace)</li>
<li>Flush every toilet</li>
<li>Run every faucet</li>
<li>Ensure every key fob, garage transmitter, and parking pass is in possession or accounted for </li>
</ul>
<b>Brokers: remind your buyers that real estate is all about caveat emptor (buyer beware). </b>Once the closing is done, any remaining issues are no longer the sellers’ problem. It is theirs. <br />
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<b>Buyers: don't hesitate to call in a real estate lawyer.</b> Let us help negotiate credits, confirm repairs, and secure commitments to clear out that last roomful of abandoned furniture…before it all becomes yours.<div class="blogger-post-footer">
contact michael@mhwasserman.com
visit www.mhwasserman.com
</div>Michael H. Wassermanhttp://www.blogger.com/profile/17542282494747756366noreply@blogger.com0tag:blogger.com,1999:blog-2004334878153382863.post-84592905011846486432018-12-02T15:22:00.000-06:002019-01-16T13:54:05.612-06:00Let’s kick discrimination out of real estateBy Michael H. Wasserman<br /><br />Discrimination is an ugly, pervasive problem. Even in real estate. We have come a long way over the course of American history, but we still have some work to do, especially in Chicago. As with any problem, this topic need needs to be examined, talked about and understood until we find effective solutions…and can provide equal access to home ownership for all.<div>
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<a name='more'></a>Here are three examples of how discrimination still plagues the Chicagoland real estate scene. The first two may be a bit more well known, but third was a real eye-opener in our office. Quite surprising. <br />
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<span style="font-size: xx-small;">Chicago, we can do better when it comes to discrimination in real estate.<o:p></o:p></span></div>
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<b>1. Minority owned properties are undervalued</b><br />
No matter your heritage or zip code, your home is typically your largest financial asset and best potential wealth builder. Sadly, racism and bigotry have consistently blocked Black Americans from building wealth as properties in minority dominated areas are consistently undervalued compared to properties in other parts of the larger community. <a href="https://www.brookings.edu/research/devaluation-of-assets-in-black-neighborhoods/">Brookings institute research suggests</a> that, in Chicago property values of homes in majority Black neighborhoods are 28% lower. Nationwide, these racial biases have cost Black Americans more than $150 billion. Yes, billion. <br />
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<b>2. Poor neighborhoods in Cook County are over-taxed</b><br />
This one is a bit closer to home. A 2017, Chicago Tribune/Propublica <a href="https://www.chicagotribune.com/news/watchdog/taxdivide/" target="_blank">investigation</a> found that Cook County consistently assessed taxes for residential properties in poor and minority neighborhoods at rates <i>far higher</i> than their actual market values. Conversely, taxes for properties in affluent areas were assessed <i>lower</i> than their actual market values. This meant, come tax time, poor and minority homeowners typically paid more than their fair share; while the affluent paid less. <br />
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<b>What can you do?</b> We have <a href="https://wasserblawg.blogspot.com/2018/05/tax-hike-3-ways-to-fight-latest-cook.html" target="_blank">long advocated</a> that our clients contest their property assessments. And recommend that everyone do so at every opportunity.<br />
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<b>3. Automated mortgage underwriting is biased against minority home-buyers </b><br />
Right now, automated loan underwriting is the darling of the mortgage industry. Financial technology (FinTech) allows almost-instantaneous loan decisions that otherwise take up to 60 days to complete manually.<br />
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Not only is this supposed to be easier on consumers (and less labor intensive for lenders), <b>one would think </b>that taking the human element out of underwriting would rid the process of bias and discrimination.<b> It turns out that one would be wrong.</b><br />
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This study from <a href="https://faculty.haas.berkeley.edu/morse/research/papers/discrim.pdf" target="_blank">University of California, Berkeley</a>, suggests that even online, mortgage lenders (unintentionally) stack the deck against Black and Latino homebuyers as software developers inadvertently built the same “logic” human loan officers use into their software. <br />
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As convenient as online applications and underwriting may be, not all lenders and not all loan programs are the same. Smart consumers comparison shop. Some programs price loans to minority borrowers higher because statistically, these buyers are less likely to shop for terms from other lenders. <br />
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<b>How can we fight lender discrimination? </b>Stay informed. Ask good questions. And, when it comes to getting a mortgage, always get at least one second opinion.<br />
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We work with some of the best mortgage professionals in all of Chicagoland, well suited to help <i>all</i> Chicagoans find the best loan products. Let us <a href="mailto:michael@mhwasserman.com">know</a> if you’d like an introduction to any of them.<br />
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<b>Learn more about valuation differences here:</b><br />
<a href="https://www.brookings.edu/research/devaluation-of-assets-in-black-neighborhoods/" target="_blank">The Devaluation of Assets in Black Neighborhoods</a> from the <a href="https://www.brookings.edu/about-us/" target="_blank">Bookings Institute</a><br />
<b>Learn more about property tax disparities here:</b><br />
<a href="https://www.courthousenews.com/cook-county-property-taxes-favor-the-rich-and-white-lawsuit-says/" target="_blank">Cook County Property Taxes Favor the Rich and White, Lawsuit Says</a> by <a href="https://www.courthousenews.com/about-us/">Courthouse News</a><br />
<b>Learn more about the problems with automated loan underwriting here:</b><a href="https://www.washingtonpost.com/business/2018/11/14/are-you-minority-borrower-you-might-want-think-twice-about-using-an-online-lender/?utm_term=.d587a3328408" target="_blank">Are you a minority borrower? You may want to think twice about using an online lender</a> By <a href="https://www.washingtonpost.com/people/tracy-jan/?utm_term=.2d3cd1953eb6" target="_blank">Tracy Jan</a><br />
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contact michael@mhwasserman.com
visit www.mhwasserman.com
</div>Michael H. Wassermanhttp://www.blogger.com/profile/17542282494747756366noreply@blogger.com2