Jonathan Michael Aven's Answers

Can the bank keep us from renting out our home if we have lived in it for the past 5 yrs and fullfilled the occupancy clause?

While the standard mortgage language does indicate that you need to occupy the property within 60 days of closing, and continue to occupy the property for a period of 12 months; most lenders have an additional document in the loan package that specifically states that you will continue to live in the property as your primary residence. By failing to live in the property, you would be considered to be in default. Whether or not your lender would ever pursue you for this default, if you are...

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Special Assessment immediately after closing

For what it is worth, I would say that the attorney has a duty to review the 22.1 disclosure. In fact with condo transactions, I feel that is the most important piece of information available when it comes to learning about the financial status of the building. It is a shame that your lawyer did not review this and point out any issues with the document after he received it. By law, you have 5 days to review this document and accept or reject it after receipt, which would have allowed...

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Do i pay a real estate attorney if the deal on the property falls through during underwriting?

I would agree with much of the comments my colleagues have made, with the exception of one point. Most attorneys that do a significant amount of residential real estate transactions would not view the transaction as contingent upon closing. We have always used engagement letters and been very upfront about fees being due if a transaction is termination prior to closing. We have also learned that if we submit a detailed invoice to a client promptly after a deal is terminated, they will...

"Is there a grace period for breaking a lease after siging in Chicago, IL"

No, there is no grace period which allows you to terminate the lease. The lease is a contract and once signed, you are bound by its terms. However if the landlord failed to provide certain information or documents to you at the time you signed the lease, it may be able to be terminated pursuant to the Chicago Residential Landlord Tenant Ordinance. You may wish to discuss with a Chicago attorney that handles landlord tenant matters.

Does the assoication have the right not to allow you to rent nor sell your unit to a buyer who wishes to rent upon closing?

Yes, so long as the Declarations do not allow rentals; however a good question to pose to the Board is why, in this market, do they want to restrict rentals, and limit the opportunity of owners who face financial hardships, shall as yourself. Many Associations started to limit rentals, in order to be eligible for FHA financing, but FHA has since reduced their requirement for rentals to as low as 50% of a building. Advise your association that if you go into foreclosure, the value of all their...

Spouse dies with no will. Does everything go the living spouse?

Under the Illinois Probate Act, 755 ILCS 5/2-1(a), if a spouse dies with no will (intestate), the estate is divided 50% to the surviving spouse and 50% to his children in equal shares. Anything held jointly will automatically pass to the surviving spouse, so anything held in both their names will become hers.

Foreclosure vs. Short Sale

While I am only licensed to practice in Illinois and you should confirm anything with a lawyer in Virginia, your credit is already affected by the bankruptcy, so either a short sale or foreclosure will only make it worse. Many people argue that a short sale will have a lesser effect on your credit, but no one every provides proof to this fact. In many states, the foreclosure process can take 18-24 months from start to finish. If your goal was to stay in the house, that would be the way to...