How Should I Prepare To Buy Or Sell A Property?
The first step in buying a property is to get pre-approved for a mortgage. The bank or mortgage company will pre-approve you for an amount that you can afford, based on your financial situation, so that you are not wasting your time looking at houses that you cannot afford. The pre-approval is also essential when you make an offer, as a seller will want to see that you are a qualified buyer. Once you have been pre-approved, you should hire a knowledgeable realtor who can help you find the house of your dreams.
The first step in selling a property is to hire a knowledgeable realtor who can provide essential advice, such as the proper price at which to market your house. The realtor can also provide advice regarding minor improvements that are inexpensive but that can make the house more attractive to a potential buyer.
Both buyer and seller should have in mind the attorney that they want to represent them in the real estate transaction so that the attorney’s contact information can be written in the contract. Once a real estate contract is accepted, it should immediately be forwarded to the attorney for review and possible modification.
What Are Common Issues That Can Affect Title And Hold Up a Real Estate Transaction?
The biggest issue that I’ve come across are judgment liens. Judgment liens attach to the title and cloud the title. This is something that affects both sellers and buyers. Most sellers are not even aware that they have judgment liens. Many times, the judgment lien holder doesn’t send notice to the individual, or if they do, the individual does not understand the significance of the notice. When the judgment lien does appear on title, the attorney has to address that issue. If I’m representing the seller, I have to contact the judgment lien holder and then I have to order a payoff letter from them. That can hold things up because the judgment lien holder is typically not prompt in providing these pay off letters. There’s a certain process they have to go through and it could take several weeks for them to provide the payoff letter.
It also can affect the buyer because if the buyer is obtaining a loan to purchase the house, the mortgage company will not approve a mortgage loan if there’s an outstanding judgment lien. Judgment liens filed with the recorder of deeds office automatically attach to real estate, so it will attach to the house that one is purchasing. Banks and mortgage companies do not like to take this type of risk. In representing the buyer, I would have to contact the judgment lien holder and try to negotiate a settlement or request a payoff letter so that it can be paid, which will allow the buyer to, hopefully, qualify for the mortgage loan.
Other issues that can affect and hold up a real estate transaction deal with the failure of the attorney representing the seller to timely comply with any requirements of the local municipality or failure to timely order required documents, such as land surveys or termite inspections.
Should I Use The Standard Listing Agreement Provided By A Realtor Or Have My Attorney Draft A Customized Agreement?
I recommend using the latest version of the Multi-Board Residential Real Estate Contract that’s used by most realtors. It has been carefully drafted and addresses most issues that arise in a real estate transaction. Even then, it can still be modified by the agreement of the parties if necessary.
How Does Foreclosure Happen? What Is The Process As A Residential Homeowner?
A foreclosure usually happens because, for whatever reason, a homeowner stops making their mortgage payments. It typically happens when a homeowner loses his or her income. If the mortgage payments are not made, the mortgage lender has a right to foreclose. The mortgage lender will file a foreclosure lawsuit with the circuit court in the county in which the property is located. The homeowner has to be served with the foreclosure paperwork in a manner consistent with the law. The homeowner is given an opportunity to respond. In the State of Illinois, a foreclosure usually takes between 7 to 9 months.
What Are My Options For Avoiding Foreclosure?
The best option to avoid foreclosure is just to keep up to date on your payments. As long as you’re up to date on your payments, you’ll never have any issues. However, if you do fall behind on your mortgage payments, call the mortgage lender and see what type of programs they might have to assist you in catching up with your payments. If you are unable to work it out with the mortgage lender, call an attorney who can discuss other options with you , such as selling the house or filing bankruptcy to save the house.
For more information on Preparing To Buy Or Sell Property In Illinois, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (630) 576-9030 today.
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