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AMENDMENT TO COOK COUNTY HUMAN RIGHTS ORDINANCE

July 18, 2013

New Section 8 Rules for Cook County Landlords

The Cook County Commission will add protections for Source of Income beginning Aug. 8. The policy has implications for real estate agents and residential property owners who rent property in Cook County.

Cook County recently amended its Human Rights Ordinance to delete an exception to the source of income provisions in the Cook County Human Rights Ordinance.  The effect of the amendment will be to make it a violation of the Cook County Human Rights Ordinance to discriminate in real estate transactions based upon an individual participating in a housing choice voucher program (Section 8).  Source of Income has been a protected class under the Cook County Human Rights Ordinance for a number of years but there has been an exception which excluded housing choice voucher programs from that protected class.  Effective on August 8, 2013 that exception will no longer apply and the taking of action in a real estate transaction based on a person’s participation in a housing choice voucher program will be a violation of the Cook County Human Rights Ordinance.

The impact of this change in the Cook County Human Rights Ordinance is primarily going to affect rental of housing in Cook County.  The Ordinance would prohibit the making of “. . . any distinction, discrimination or restriction in the price, terms, conditions, privileges of any real estate transaction, including the decision to engage in or renew any real estate transaction, on the basis of unlawful discrimination.”  To the extent that a decision is made upon a person’s participation in a Section 8 or housing choice voucher program this will constitute illegal discrimination under the Ordinance.   

The Receivership is an alternative to a foreclosure

November 27, 2012

Mortgage defaults and delinquencies are common. Distressed properties account for nearly one-third of residential transactions. Foreclosures, short sales, and banks’ REO (real estate owned) and bulk sales have become terms and methods for purchase and sale. Another method of selling these type of real estate and gaining popularity is the receivership. Receivership has grown over the past few years. Receivership is an alternative to a foreclosure proceeding (where a lender takes ownership of the project) or a bankruptcy proceeding (a trustee takes control of the property).

Receivers are court-appointed individuals given custodial responsibility of a property that serves as collateral for a loan in default. Receivers displace the property owner as the active property manager and make most decisions regarding management and operations. These often include making improvements, completing construction and getting the property ready for sale. The court order appointing the receiver spells out the receiver’s authority.

A property in receivership can present a more appealing situation, because there’s more control than in a short sale or a foreclosure, and purchasers can use standard financing. The court order approving each sale confirms that the buyer is receiving his or her real estate free and clear of all liens, including those of contractors or lenders. After the real estate is sold, the receivership proceedings will terminate. The buyer’s rights are defined in the purchase and sale agreement.

A primary benefit of buying through a receivership often is value. Before a receiver is appointed, owners often resist resetting pricing in an attempt to save some or all of the equity invested in the property. When a receiver takes over, the receiver has the authority to set pricing based on market conditions rather than the original cost. The new pricing is often lower than the original asking price.

Receivers’ fees, as well as any fees for third-party professionals they hire, typically are paid with available cash from the property’s sale or, in the case of a commercial property, rents from operations. Generally a receiver sale is far more direct and expedient than a short sale. A short sale requires a lender to accept a purchase price that’s lower than the mortgage value, which can be a very protracted exercise and sometimes results in no sale at all. A receiver sale typically has a set price and legitimate offers accepted by the receiver usually are approved by the court.

The court approval process takes about as long as the buyer’s financing approval. The sale of the property then closes much like a traditional real estate transaction. Mortgage lenders may choose to use receiverships instead of foreclosures, because the costs and liabilities associated with foreclosure can be long, drawn out and expensive. For example, a foreclosure can take several months and involves a great deal of legal and administrative fees. In addition, the borrower in default maintains control of the property until the foreclosure has been completed. This can substantially increase the risk of additional costs.

McCormick Partners Realty has seen an increase of receivership sales in the past couple of years. Lenders are not alone in using this method of sale, property owners can also use this method as a means of “getting out of a bad real estate situation” Contact us for more information: Ruben Colon 773-425-5934

How do lease Options work and what are the benefits?

November 18, 2012

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Lease Options are a great option for home sellers, especially if a home seller is faced with a slow housing market. For those who are wondering, “ How lease options work and what are the benefits,” it is really quiet simple. A unique arrangement, lease options come about when a home seller and a potential homebuyer agree to the principle that the home can be sold to the homebuyer after they have rented it for a specific time period.The lease option is a particularly good option for those individuals who want to purchase a home but do not have the sum necessary to make a down payment. Considering how expensive purchasing a home is, lease options are a valuable way to sell your home that is mutually beneficial to both you and the homebuyer.

How they work is that the homebuyer pays rent until they exercise the lease option. A portion of the rent goes to the purchase of the home if the option is exercised. Otherwise known as rent credit, this rental arrangement is generally accepted by most institutional lenders as an acceptable form of down payment for a home. However, in order for this rent money to be considered rent credit, the rental payments must exceed the market level of rent and a copy of a valid lease -purchase agreement must be attached to the loan application if one is in effect.For those who are selling their home, lease options have a number of excellent advantages.

From a financial perspective, lease options means that the home seller will be receiving a monthly rent that is above market levels. Additionally, the home seller would be receiving top-market value for their property and would also enjoy tax-free use of the lease option consideration to the point where the lease option expires or is exercised. Also, a home owner would be able to enjoy peace of mind about how their property is being maintained as the renter has an incentive to treat the property like an owner as they are hoping to eventually own it after exercising their loan option.

Consult an attorney: Have an attorney draft a legal document specifically for this situation. “Use a legal document that is drafted specifically for your situation. Don’t use a form document that you’ve downloaded from the internet or purchased at a drugstore,”

951 Valley View Dr, Downers Grove, IL | Powered by Postlets

October 2, 2012

951 Valley View Dr, Downers Grove, IL | Powered by Postlets.

Real Estate Receivership and Consulting

September 4, 2012

McCormick Partners Realty is a leader in the Chicagoland real estate arena. Providing consulting, receivership and real estate brokerage services to asset managers, lenders, attorneys and private clients.

Our services are customized to meet your individual needs:

  • Receivership and real estate brokerage services
  • Investment & Residential Real Estate Brokerage
  • Real Estate Contract Negotiations
  • Lease Negotiations
  • Investment Analysis
  • Highest and Best Use analysis
  • Commercial and Residential Property Acquisition and Disposition
  • Work with clients to structure and negotiate financial terms of real estate transactions.

Ruben Colon

rcolon@McCormickPartners.com
Bi-Lingual: English – Spanish
773-425-5934

Newly built condos with seller financing in Northlake

June 10, 2012

 

 

 

 

 

 

 

 

 

Look no further than Wolf Ridge Condominiums for true seller financing. With a down payment requirement of only 5%, a fixed interest rate of 4.95%, and a 30-year term and amortization available to all buyers, this is the time to buy.

Recently completed,WolfRidgeis a pleasant community of new-construction luxury condominiums conveniently located near Northlake’s main business district. One-, two-, and three- bedroom homes are available ranging from 1,135 to 1,790 square feet of living area.WolfRidgeoffers affordable, luxurious homes constructed with only the highest quality in mind. Solid reinforced brick construction, all-copper water piping and, sound/fire resistant walls give owners an unparalleled level of comfort and security.

Premium finishes, individual private balconies with architectural railings and highly efficient heated indoor parking are just a few examples of the numerous amenities the homes extended to all residents.

WolfRidgeis conveniently located near everything a homeowner could need. Just six blocks from the I-294 and I-290 interchange, WolfRidge’s excellent location makes travel to O’Hare International Airport, downtown Chicago, or its surrounding suburbs quick and convenient. To the south, many nearby franchises and local businesses offer a variety of restaurants, shops and services. Heading north, the neighborhood becomes more residential with a picturesque river, parks, walking trails, the Northlake Public Library and more.  Located just blocks from Wolf Ridge are the Millennium Park and Sandy Vazquez Community Center. The newly-constructed park includes playground equipment, a volleyball court and a splash fountain among other features.

Contact: Ruben Colon 708-492-1010  rcolon@McCormickPartners.com

www.WolfRidgeCondos.com

Wolf Ridge Condominiums in Northlake, IL

June 10, 2012

Wolf Ridge Condominiums in Northlake, IL