Home Owner's Warranty

The truth is,  home owner's warranties (HOW) are a waste of money if you have to pay for one.  A home owner's warranty is an insurance policy that covers you if an item breaks down.   The policies are different so an explanation of what it covers is impossible.   What consumers think they cover is usually every appliance and major systems in the house.   Like dishwasher, refrigerator,  furnace,  washer machine. ...   Also,  there is usually a copay, and what happens if the item is not repairable.   Read the policy before paying for it, or read it when someone else pays for our.

The deductible and what they cover is not worth paying for.   Read consumer reports on warranties.  NBC recently did a report on it.  However,  If you are buying a home and the seller is paying,  then it's ok.  Just don't expect to benefit from it, and do not extend it.  As with all contracts,  read before buying.

Illinois Attorney General Lisa Madigan has publisher an article on home worthless an HOW can be.   People that I have heard from complain about the slow response, to the point that they want skip the HOW to have an item fixed.

Also,  like car warranties make sure that you know what it covers.

Bottom line: it is probably a waste of your money.

Jeffrey M. Jacobson
JeffJacobsonLaw.Com
331-222-9529

warranty law

At a recent family event someone thought that if a car owner installs their own trailer hitch and trailer lights that they void the warranty.   Not true.

Pursuant to Magnusson-Moss federal law,  any thing you put on your car doesn't void the warranty unless it was the cause of a problem. Only that problem is not warranted.   So if you attach trailer lights wrong and that causes the right turn signal to not function,  only the right turn signal is not warranted.   If the transmission goes,  unrelated to the trailer lights,  the transmission is still warranted.

You know your marriage is dead. We know the law.

When you realize that your marriage is dead, all sorts of emotions start flowing.  Some find peace.  Others are depressed.  The person that you thought you were going to spend the rest of your life with, is no longer the person you married.

If you feel sad, depressed, troubled, or any of the other plethora of emotions, you should seek a mental health care professional.  Jeffrey Jacobson recommends a psychologist.  A psychologist specializing in marriage would be the best.  They are trained to help you with your new beginning.

One of the first things you need to do is give yourself time to grieve.  Research shows that the end of a marriage is like the death of someone.  One of the best ways to grieve is to set aside time to be sad.  This could be the whole weekend, or a few hours each night.  Also, journaling is a great way to handle all of the emotions.  Journalling is putting down all of the things that are bothering you and make you happy.  This journal will be beneficial to your psychologist and your attorney.

Then, you should immediately contact an attorney that practices in family law.  Jeffrey Jacobson has almost 25 years of representing people that need a divorce.  He understands the trauma and the future for his clients.  You are going to need financial direction, emotional direction, and to work through the maze of the law, you are going to need Jeffrey M. Jacobson to help you.

If there is a child, then you need someone that has been representing parents to protect their rights.  Jeffrey M. Jacobson has been protecting and advocating for parent's rights since he began practicing law.

When you are ready for the divorce, yes, it is sometimes a difficult word to say, you need to focus on five issues:  (1)  custody and visitation, if there are children, (2) Child support, if there are children.  (3) division of assets, (4) division of debts, and (5) maintenance.

Call Jeffrey M. Jacobson at 331-222-9529 any time you feel you need someone on your side.

For more information, go to my web site www.JeffJacobsonLaw.com or email me at LawJake12@gmail.com

Real Estate changes

While the new real estate laws were set to go into effect on July 1, 2015, the Consumer Financial Protection Bureau (CFPB) changed the date.  It is now October 3, 2015 when the new Lender Estimate and Closing Disclosure are set to be required.

Once these new rules are required, the consumer will then have an opportunity to go over the lenders information before choosing a loan.  Also, if the financial numbers change for the closing, for example the interest rate changes by more than an 1/8 of a percent, the consumer has three days to think about the new information before closing.  What if the payments are too high for the buyer?

There are a lot more changes, which I will be discussing in my future blogs.

Jeff Jacobson at JeffJacobsonLaw.com

child support is not just for the custodian parent.

For many parents in a divorce, they believe that only the custodial parent can receive child support. However, the Illinios First District Appellate Court has made it clear that child support shall be paid to the parent that needs the money to ensure that the child has appropriate housing and amenities during his or her period with the non-custodial parent.   See In re Marriage of Turk, 2013 IL App (1st) 122486, or my website www.JeffJacobsonLaw.com for more information.  When looking for a divorce attorney, consider the attorney's knowledge on relevant law.  For example, years before this case was decided, I was successfully arguing this point. "You know your marriage is dead,  we know the law."

What does a Seller need to know for a real estate closing in Illinois

My clients ask what needs to be done for a real estate closing when they are the seller.  First thing is I take care of getting everything they need.  There are several documents that need to be produced or procured.  They are: 

1. The deed.  What is a Deed?  The deed transfers ownership from the seller to the buyer.  The typical real estate deal uses a Warranty Deed.  This transfers everything from the seller to the buyer.  While I would not accept a Quit Claim Deed, some transactions in a divorce use that deed to transfer property from one spouse to another.  A Quit Claim Deed only transfers what the seller actually owns to the buyer.  For example, if the Lassie and Flipper are getting divorced, and Flipper is getting the house, then Lassie needs to transfer the property to Flipper with a deed.  If before the transfer, Lassie sells her interest to Mr. Ed, then she owns nothing.  When she signs the Quit Claim Deed, she is not transferring anything to Flipper.   Also, she is not committing fraud when Lassie signs the Quit Claim Deed because Lassie is only transferring what Lassie owns, which is nothing.  If Lassie is required to sign a Warranty Deed, then Lassie is promising that Lassie owns the property.    There are other Deeds, such as a Judge’s Deed, that are rarely used.
2. The title commitment.  Title Commitment is used to insure to the buyer that they are buying the property.    Everyone knows the statement; do you want to buy the Brooklyn bridge?  At a real estate closing, the buyer gives the seller money for the property and the seller gives the buyer a piece of paper that states “Deed”.  The buyer has no way to know whether the seller owns the property.  For the buyer to protect themselves, they require from the seller an insurance policy guaranteeing that the seller owns the property or the insurance company (Title company) will pay for the damages.   The seller gives to the buyer a few days before the closing a Title Commitment.  This contains all of the information the buyer needs to know for the closing and insurance policy.  These are legal documents produced by a title company or an attorney.   Because these are complex, it is essential that an experienced attorney review this.
3. Bill of sale.  A Bill of Sale is a document transferring all of the items in the house that are not the actual building.  For example, washer machine, dryers, shelves, and more.  Items that are attached to the property or building that would damage the building or land when removed are typically not part of a Bill of Sale.  This is a simple document, but if not done right, the seller or buyer may be harmed.
4. Settlement statement and RESPA.  Closing statement is a document produced that contains where every penny from the sale is coming from or going .  It is an accounting between the buyer and seller.  The RESPA (this is changing soon pursuant to federal law) contains every penny related to the buyer, seller and any other party that is giving or taking money related to the real estate transaction.
5. State and county transfer tax forms and stamps.  The State and County transfer forms for Illinois differ depending upon what county.  Some counties rely on the paper State of Illinois transfer form.  Other counties rely on the electronic transfer form.  Knowing which form is essential to the closing.
6. City or village transfer tax forms and inspections.  Most Cities or Villages in Illinois have their own requirements.  These need to be determined at the beginning of the real estate contract.  For example, most Cities or Villages require the payment of real estate transfer taxes.  However, it differs from city or village.  Some require the seller to pay and others require the buyers to pay. Some require stamps to be purchased before the closing, others don’t.   In addition, some cities or villages require an inspection of the home and repairs to be done.  Some require that the water bill be paid before the closing.   It is essential to the real estate closing that the requirements be followed and done before the closing.
7. The survey.  The seller and/or lender will want a survey.  The survey determines if the home is actually located on the property.  There is at least one block in Illinois where the homes are partially on the neighbor’s property. 
8. If the property is part of a condominium or townhome, then there are all sorts of requirements.  The first step is to request from the condominium or townhome the requirements.  Also, the seller will need to produce a paid assessment letter and right of first refusal letter.
9. If the sales property is held in trust, the trustee will have requirements to be met.  The trustee will send to the seller a Trustee’s deed and a paid proceeds letter along with other documents that may be required.  This part of a closing is too substantial to cover here.  Contact me if you have questions about this.

         Contact Jeffrey M. Jacobson at JeffJacobsonLaw.com or 331-222-9529

Mortgage foreclosure and tax liability

As of January 13, 2014, a bill was introduced to extend the Mortgage Forgiveness Debt Relief Act of 2007.  It has not even been brought for a vote.

The Mortgage Forgiveness Debt Relief Act of 2007 expires on 12/31/2013.  This Act allows a home owner to not have to pay taxes on the amount of money forgiven by a mortgage company on their residential home.  This Act has several exceptions, one of them being that it does not cover anything but your primary home.

Here is how the Act works. If the mortgage amount was $400,000.00 and you sold the house in a short sale for $300,000.00, you had $100,000.00 income according to the IRS.  You would pay taxes on the $100,000.00 "income".   So, next year when you do your tax returns, you claim $100,000.00 as income.  You could be paying tens of thousands of dollars in taxes.  The Act states you don't have to pay the taxes on your primary residence.  Since the law is expected to end on 12/31/12 try to get the forgiveness done this year in case the Act is not extended.  If the Act is extended, you have more time to sell your house.

If you have any questions, please let us know.  

Jeff Jacobson 

331-222-9529