I received a call from a lady today who told me that her cousin had passed away. The caller was power of attorney agent for her cousin. After the cousin died, the lady tried to go to the bank to get into the cousin's safe deposit box. The bank refused her access to the box. She told me that the bank indicated that she could get a "court order" to enter the box. I suspect that the bank was talking about opening a probate estate to get "Letters of Authority" to represent her deceased cousin's estate. I aksed the lady if there was an estate plan. She told me it was probably in the safe deposit box.
Uncommon? Nope. Most people, quite correctly, keep their important documents, their will or other estate planning documents, in their safe deposit box. But what happens if the executor, power of attorney agent, or other family member is not listed as a person authorized to access the box?
The State of Illinois comes to the rescue. The Safety Deposit Box Opening Act (755 ILCS 15) allows an "interested party" to provide an affidavit to any bank controlling a safe deposit box of a deceased person to file an affidavit with the bank indicating that the person is interested in filing the deceased person's will or making arrangements for the deceased person's funeral and the person believes the box may contain the will or burieal documents of the deceased person and the bank in control of the box may then open the box to search for a will or codecil to a will. If a will or cedecil is found, the bank has a legal obligation to file the will or codecil with the probate court will depository in the County where the bank is located.
As a result, it makes a lot of sense to keep a will in a safe deposit box. The real trick is letting everyone know where the bank is.
Tuesday, February 23, 2010
Thursday, February 18, 2010
Looking for a Speaker?
In the last month or so, I have developed a pretty darn good (if I say so myself) presentation on the plethora of laws (local, state, and federal) affecting Chicago landlords when making a lease. I've presented the seminar to a group of ReMax agents and their clients and will be presenting again next week for Real Living Helios. I would be happy to make that same presentation to any interested landlord groups, real estate brokers or their clients. Anyone who is interested can feel free to contact me at http://illinois-attorney.com/contact.
Wednesday, February 17, 2010
Hey, Buyer, is a short sale for you?
Short sales get you a house at a big value, but they come at a cost! I would say that, for one reason or another, only about 50% of the short sales that our office handles for Buyers actually close. The reasons they fail to close are many and varied. Most commonly, they fail to close because the Seller's bank does not approve the short sale offer, the buyer can't get financing, the real estate's value changes during the long wait between contract and closing, a new buyer is found, or the buyer gets sick of waiting. This is not to say that short sales do not close, but they are a challenge.
During a short sale transaction, the Buyer has to serve two masters - one who says "wait, we need the Seller's bank to approve this deal" and the other who says "as soon as the Seller's bank is ready, you had better be ready to close at a moment's notice". It can be difficult to serve both masters at once. In a short sale transaction, patience is a virtue. The main question for a short sale buyer is “How long can you wait?” The answer is easier if the property the question is not necessary for immediate residential occupancy. For someone who really needs to move into their new short sale purchased home, a short sale is a disaster waiting to happen. Delays are the norm. A short sale Buyer can't count on the contract closing date. Despite all the waiting, once the Seller's lender approves the sale, all of the parties must act fast to close the deal. Oftentimes, the short sale approval may only have a window of a week or so. A Buyer might feel like a yo-yo with all the waiting and edge of the seat preparedness. When the Buyer requires a loan to complete the purchase, because underwriting takes time, loan programs change, and lenders generally do not act quickly, the Buyer's lender may not be able to meet the Seller's lender's time table for closing.
Many Buyers do not want to waste money on their short sale transaction until they know that the deal will “happen”. If a lender does not approve a short sale, the Buyer could be out real money spent on appraisals, inspections, lender fees, rate locks, and attorneys fees. Thus, they try to hold off on obtaining an appraisal or inspection until they know the Seller's lender approves the deal. Oftentimes, the Seller will not agree to delay these items. From the Seller's perspective, the Seller does not want to spend months obtaining a short sale approval only to see the Buyer pull out because of inspection issues. As for the Buyer who wants to wait to get the lending process started, they might find that their lender is unable to close in time.
Even if costly items can be delayed, the delay may make the deal more difficult. If an inspection is performed after the Seller's lender's has approved the short sale, the buyer should not expect any inspection credits (to get those would require going back to square one in the Seller’s short sale approval process) and short sale sellers usually have no money of their own to put into the deal!
The short sale Buyer trades a great price for any right to complain about much of anything, including legal rights. The Seller's lender controls the game. Any short sale seller represented by a competent attorney will work to reduce the Buyer’s right to require a closing absent the approval of all third parties who are owed money. The Buyer generally has to play along. Again, this is part of the trade off for a “great” price, as the lender is normally swallowing a big loss. If the price is not great, the Buyer should not do the deal. After all, there are lots of properties for sale on the market these days.
After overcoming all of tribulations of getting to the closing closing table, the majority of short sale closings that do close usually require more than one day to close! A short sale closing begins like most others. However, the title companies usually need the seller’s lender to sign off on the sale or their payoff letter. This process usually causes delays. I have personally witnessed a seller's lender take a week to approve their already approved short sale payoff letter. Short sale closings can take a full day. They can be re-scheduled several times. They can take multiple days to close. All of these are possible in a short sale.
A short sale Buyer who is flexible, patient, and willing to "play the game" can find a real bargain in the real estate market. They just have to be willing to do what it takes to get that bargain.
During a short sale transaction, the Buyer has to serve two masters - one who says "wait, we need the Seller's bank to approve this deal" and the other who says "as soon as the Seller's bank is ready, you had better be ready to close at a moment's notice". It can be difficult to serve both masters at once. In a short sale transaction, patience is a virtue. The main question for a short sale buyer is “How long can you wait?” The answer is easier if the property the question is not necessary for immediate residential occupancy. For someone who really needs to move into their new short sale purchased home, a short sale is a disaster waiting to happen. Delays are the norm. A short sale Buyer can't count on the contract closing date. Despite all the waiting, once the Seller's lender approves the sale, all of the parties must act fast to close the deal. Oftentimes, the short sale approval may only have a window of a week or so. A Buyer might feel like a yo-yo with all the waiting and edge of the seat preparedness. When the Buyer requires a loan to complete the purchase, because underwriting takes time, loan programs change, and lenders generally do not act quickly, the Buyer's lender may not be able to meet the Seller's lender's time table for closing.
Many Buyers do not want to waste money on their short sale transaction until they know that the deal will “happen”. If a lender does not approve a short sale, the Buyer could be out real money spent on appraisals, inspections, lender fees, rate locks, and attorneys fees. Thus, they try to hold off on obtaining an appraisal or inspection until they know the Seller's lender approves the deal. Oftentimes, the Seller will not agree to delay these items. From the Seller's perspective, the Seller does not want to spend months obtaining a short sale approval only to see the Buyer pull out because of inspection issues. As for the Buyer who wants to wait to get the lending process started, they might find that their lender is unable to close in time.
Even if costly items can be delayed, the delay may make the deal more difficult. If an inspection is performed after the Seller's lender's has approved the short sale, the buyer should not expect any inspection credits (to get those would require going back to square one in the Seller’s short sale approval process) and short sale sellers usually have no money of their own to put into the deal!
The short sale Buyer trades a great price for any right to complain about much of anything, including legal rights. The Seller's lender controls the game. Any short sale seller represented by a competent attorney will work to reduce the Buyer’s right to require a closing absent the approval of all third parties who are owed money. The Buyer generally has to play along. Again, this is part of the trade off for a “great” price, as the lender is normally swallowing a big loss. If the price is not great, the Buyer should not do the deal. After all, there are lots of properties for sale on the market these days.
After overcoming all of tribulations of getting to the closing closing table, the majority of short sale closings that do close usually require more than one day to close! A short sale closing begins like most others. However, the title companies usually need the seller’s lender to sign off on the sale or their payoff letter. This process usually causes delays. I have personally witnessed a seller's lender take a week to approve their already approved short sale payoff letter. Short sale closings can take a full day. They can be re-scheduled several times. They can take multiple days to close. All of these are possible in a short sale.
A short sale Buyer who is flexible, patient, and willing to "play the game" can find a real bargain in the real estate market. They just have to be willing to do what it takes to get that bargain.
Wednesday, February 3, 2010
Taxes and taxes and taxes
Many folks will be seeing the first installment Cook County real property tax bills showing up in their mailbox shortly. This year, the County is looking for 55% of last year's full year bill. Then, when they raise your taxes in the fall, it will not seem like such a shock. Thanks for that Mr. Stroger.
In addition, the Assessor has implemented a bit of a shell game for reassessments. Beginning in 2009, the County has adjusted the formula used to arrive at an assessed value. Generally, the county has reduced the number of property classes and reduced the percent of fair market value for the classes to arrive at an assessed value. This can be confusing because a mere review of the assessor’s raw information comparing assessed values for 2008 to 2009 (or thereafter) will not be effective to adequately assess the change in assessed value.
To really have an “apples to apples” comparison of the two amounts, it is necessary to “back out” the figures to the assessor’s fair market value. A truly detailed review of the situation would compare the client’s increase to the median increase in their township.
Finally, residents in the north and northwest suburbs will be receiving their reassessment notices shortly. Be on the lookout and be aware of the time limits to appeal these taxes.
In addition, the Assessor has implemented a bit of a shell game for reassessments. Beginning in 2009, the County has adjusted the formula used to arrive at an assessed value. Generally, the county has reduced the number of property classes and reduced the percent of fair market value for the classes to arrive at an assessed value. This can be confusing because a mere review of the assessor’s raw information comparing assessed values for 2008 to 2009 (or thereafter) will not be effective to adequately assess the change in assessed value.
To really have an “apples to apples” comparison of the two amounts, it is necessary to “back out” the figures to the assessor’s fair market value. A truly detailed review of the situation would compare the client’s increase to the median increase in their township.
Finally, residents in the north and northwest suburbs will be receiving their reassessment notices shortly. Be on the lookout and be aware of the time limits to appeal these taxes.
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