the wasserblawg

By Michael H. Wasserman You might not know it from a look out the window or a walk around the block just yet, but the spring real estate market is upon us, and home buyers are out en masse in Chicago searching for the right opportunities.  Everyone’s favorite semi-governmental real estate entities, Fannie Mae and Freddie Mac both seem intent on capitalizing on this now to further reduce their respective REO inventories. Each has announced new incentive packages to try to entice prospective buyers. Notable in the two announcements is the differing strategies they are using. Fannie Mae is offering fairly sizeable incentives to buyers themselves. Freddie Mac, while offering a token to buyers seems to be much more focused on motivating the sales agents that guide buyers. 

By Michael H. Wasserman Closing on residential properties in Chicago generates a lot of paperwork. Particularly if when mortgage financing is involved. Part of my job as an attorney for home and condo buyers is to help with loan application/documentation and to review the at-closing loan package with them. The number of documents presented at closing seems to grow every year. It can take a while to slog through the reams of disclosures, authorizations and certifications most lenders send to the closing table. Pens run out of ink. Rest breaks are often needed. Stacks of paper get pushed from one end of the table to the other and then back again. The two most typical reactions to all of the signing are (A) recognition of all the trees that "give their lives” in service to the lenders and title companies, and (B) Hopes / wishes for paperless closings. The mortgage financing process for some  home buyers is getting a bit "less inconvenient" and a step closer to paperle...

by Michael H. Wasserman I review title company charges and all other closing costs with the Buyers and Sellers i represent. Many (often rightfully) comment on the vast array of different fees that must be paid and the total cumulative effect these charges have on their closings. Akin to all the regulatory charges on a telephone or cable bill. Industry jargon and abbreviations provide an easy short hand to us practitioners but does not make the numbers any clearer to consumers. One such charge / classification is the CPL (Closing Protection Fee). This state mandated collection obligates a title insurance company's underwriter to cover any losses suffered to a buyer, seller, and lender in the event that the closing agent either does not follow closing instructions or misappropriates funds from the closing.  In Illinois, Sellers pay $50.00 per transaction. Buyers pay $25.00 ($50 if there is a mortgage loan). This is a relatively new charge, so many buyers and sellers who do not...

By Michael H. Wasserman Nothing gets the phones ringing in my office quite like property tax bill season.  Cook County mailed out 1st installment bills this past week. They are due by March 4th. The taxing system is dreadfully complicated and consumers, particularly new property owners, have questions. Here are some of the most common questions received in my office and, of course, some answers too! WHAT TAXES ARE WE PAYING? All Illinois property taxes are paid one year in arrears. In other words, the bills we all just received in 2014 are actually taxes due from 2013. This presents an obvious question for anyone who closed last year or earlier this month - is this my bill or the sellers?

by  Michael H. Wasserman, Attorney at Law A startling number of condominium and homeowners associations do not keep reserve funds on hand. Reuters reports that 70%. of all American associations. are underfunded, a 12.5 percent increase compared to 10 years ago. That number seems to be rising. Certainly, there are plenty great reasons why home buyers might consider condominium projects or houses that are part of a planned community or homeowners association.  Common expenses are spread among the community members, which can blunt the costs of maintenance and can also make available more & nicer amenities for all to enjoy. How popular are association communities? Four of five buyers of new homes, including condos buy into an association. 63 million Americans live in community. By contrast, only 2.1 million did so in 1970. 

by  Michael H. Wasserman, Attorney at Law My clients and the friends & colleagues that refer them, mean the world to me. In their honor, a portion of the fees generated from each successful Chicago area real estate closing is donated to a worthy charitable organization, as selected by the Client. The  Thanks to You  program - now in its fourth year - is both an expression of my gratitude to clients and friends of the program, and a statement of our collective efforts to build stronger communities. In 2013, ten select organizations collectively received well in excess of $7,500 to promote better education, better health, and the fine arts.  The running total over the past three years, has now surpassed $18,000.

by  Michael H. Wasserman, Attorney at Law The National Association of Realtors is reporting that our Consumer Financial Protection Bureau (CFPB) is asking for feedback on the most stressful, confusing, and problematic areas for consumers when it comes to the closing process in a home purchase.  Responses must be submitted on or before Feb. 7. The agency is hoping to identify the main consumer “pain points” at closings as part of its “Know Before You Owe” initiative, which is aimed at improving the mortgage process for consumers.  CFPB is also looking for  answers to 17 specific questions about closings and consumer preparation, common errors, the role of other parties in the process, and about consumers’ comfort with the overall closing process. The public is encouraged to comment on the common problems consumers face at closing; where consumers turn for advice during closing; and what documents and terms are the most confusing during the process.