What You Should Know About Selling Your Marital Home During a Divorce

divorce, DuPage County real estate attorneyFor a dedicated real estate broker, there are few things that as satisfying as helping a client buy a new home or to sell a home at a substantial profit. In many situations, the same broker can help a client with both deals at the same time—selling their current home while buying a bigger and better home for the future. At some point, however, most real estate professionals will eventually find themselves caught in the middle of a contentious divorce—one where the couple is being forced by the circumstances to sell their marital home. To manage such a situation, many real estate agents have developed strategies to help them thrive in what has become known as the “divorce niche” of real estate.

Be Very Patient

If you are going through a divorce, you want the proceedings to move as fast as possible without compromising your best interests. The same holds true for a real estate broker who is trying to help you sell your family home. Selling a house is difficult under the best of circumstances, and the added complications of the divorce can slow things down even more. Your agent might need to get approvals from both you and your soon-to-be ex-spouse, which is often very challenging if the divorce has turned bitter. Therefore, you and your broker will need to be extremely patient as you work on selling your home.

Keeping the Divorce Talk to a Minimum

While your divorce may be the only reason that you are selling your home, your potential buyers do not need to know that. In fact, many agents say that it is a good idea to avoid mentioning your divorce to prospective buyers altogether. If you tell a buyer that you are only selling because of a divorce, it may create the impression that you are desperate to make a deal. In turn, this could lead to lower bids and increased demands from buyers looking to capitalize on a perceived opportunity.

Your agent might also do some things around the house to address evidence of a pending divorce. For example, he or she may rearrange your bedroom furniture or the contents of your closets to make it less obvious that your spouse moved out recently.

Creating Loyalty

A real estate broker who can adeptly handle the sale of a home during a divorce will usually be well-positioned to help you and your spouses as you move forward. There is a good chance that both of you will soon be looking for a new place to live. If your agent was honest, communicative, and easy to work with, you might be inclined to work with him or her again in the future. Your broker could also benefit from you sharing your positive experiences with your friends and family.

A Wheaton Real Estate Lawyer Can Help Too

There is little question that a qualified real estate broker can be a tremendous source of guidance when you are looking to sell your home during your divorce. However, there are many legal concerns that must be dealt with, as well. A real estate agent is not trained or permitted to offer legal advice, which means that you should contact an experienced DuPage County real estate attorney. By adding a legal professional to your sales team, you can ensure that all important aspects of the deal have been addressed. Call Stock, Carlson, Oldfield & McGrath LLC at 630-665-2500 to schedule a confidential consultation.

Sources:

https://realestate.usnews.com/real-estate/articles/real-estate-mistakes-you-dont-want-to-make-in-a-divorce

https://www.npr.org/2011/01/20/133026583/for-sale-by-divorce-a-real-estate-niche

Top Four Reasons You Need a Real Estate Attorney When Buying Your New Home

Wheaton real estate lawyerFor many people, home ownership is a big part of living the proverbial “American Dream.” That being said, your home is probably the most valuable purchase you will ever make in your life. If you are buying a house for the first time, you might not realize all of the steps that are involved and how complex each of them can be. Throughout the process, there will be many variables to take into account and problems to avoid.

In many cases, homebuyers work with a real estate broker or an agent to help them find the right home and to streamline the process. Your agent, however, is only a part of the bigger picture. A qualified real estate lawyer can provide the legal protection you need along the by:

  • Acting as an advocate. Your real estate agent might be friendly, helpful, and charismatic, but the main goal of an agent to facilitate the sale of the home. This means he or she will often be an intermediary between the buyer and the seller. A lawyer, by comparison, is dedicated to protecting your interests, regardless of whether a sale takes place;
  • Offering legal advice. No matter how knowledgeable your agent might be, he or she is not allowed to give you case-specific legal advice. Doing so could cost the agent his or her real estate license. An attorney is fully qualified to review state laws, local ordinances, and other rules that might affect your transaction and to provide you with reliable guidance at every stage of the process;
  • Translating legalese in contracts. Legal documents are almost written using confusing language and terms that are unfamiliar to the average homebuyer. Without a lawyer, you might struggle to understand the terms, conditions, rights, and responsibilities of not only your purchase contract but also of your mortgage agreement and any other applicable legal paperwork; and
  • Researching the property. Real estate transactions are usually public record, but tracking down the history of a particular property can be difficult and time-consuming. A real estate lawyer has the tools and resources to research the chain of title for the home, any previous sales, and any problems that may have come up in the past. Your attorney’s work could help you negotiate a better deal on the property or show you that you might need to reconsider altogether.

Making a mistake when buying a home could lead to serious problems down the road, possibly costing thousands of dollars and many hours of aggravation. Working closely with an experienced real estate lawyer could help you save money, time, and stress.

Call a DuPage County Real Estate Lawyer

If you are thinking about buying a home in the near future, contact an experienced Wheaton residential real estate attorney. Our team will sit down with you to discuss your circumstances and help you find and buy the right home for your family. Call 630-665-2500 for an appointment today.

Sources:

http://legal-dictionary.thefreedictionary.com/Chain+of+Title

https://homeguides.sfgate.com/real-estate-lawyer-do-6871.html

What You Should Know About a Short Sale

short sale, Wheaton real estate attorneysWhile the economy has steadily improved over the course of the last decade or so, things are still not where they should be in many respects. As people experience financial hardships, some are forced to sell off assets, houses included—often for less than they are worth. This is referred to in real estate as a short sale, and it can be quite complex to navigate through on your own.

Short Sale Requirements

Many people are vastly unaware as to how complex a short sale can be, but it can be because there are not only questions regarding the nature of the asset for sale, but also the remainder of the debt or loan that is not being resolved by the short sale. Short sales are only successful if everyone involved (the seller, the bank or other entity holding the loan, and anyone else) agrees to take less money than they might otherwise make. However, a lender does not actually have to agree to a short sale in order for one to go forward, at least in Illinois; only the mortgage holder must agree, and the two are not always the same.

There are four items generally required in order to complete a short sale and obtain the mortgage lender’s permission. They are:

  1. A hardship letter, with an explanation of why the mortgage is in default;
  2. Proof that the property’s current value is less than the cost of the mortgage and closing costs;
  3. A showing that a buyer for the property exists, and that buyer is not related to the seller; and
  4. Credible testimony that there is no better alternative.

The third item can be a concern in particular, as it is not unknown to simply transfer an asset to a friend or family member as a sort of surreptitious trust; such actions are illegal under the Illinois Fraudulent Transfer Act. These factors all being met do not necessarily guarantee a successful short sale, but they greatly increase the odds that all involved will be able to come to a consensus.

After a Short Sale

Assuming the sale itself goes according to plan, you will still be left with the question of the remaining balance on the mortgage. In Illinois, this may be disposed of in two ways. The lender will either forgive the debt—usually not out of a sense of altruism, but rather because it is possible for them to write it off—or they will try to seek a deficiency judgment. A deficiency judgment is just what it sounds like, where the lender files a civil suit in order in an attempt to collect the remaining balance due on the mortgage.

In a short sale, it is possible to insert language into the offer letter agreeing to waive any remaining liability, but unlike some other states, such as California, this is not required. If a deficiency judgment is entered against you, your wages may be garnished, your bank account may be levied (frozen) and in extreme cases, you may have assets or other financial instruments seized to make up the difference.

Contact a Wheaton Real Estate Attorney

Real estate can be an extraordinarily complex area of law, and a short sale can be one of the most intricate and difficult enterprises to undertake, especially alone. Contact an experienced DuPage County real estate lawyer at Stock, Carlson, Oldfield & McGrath LLC today. Our knowledgeable professionals can help guide you through the short sale process, and answer any questions you may have along the way.

Sources:

http://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=2055&ChapterID=57

https://www.irs.gov/taxtopics/tc453.html