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Starting this year, there will be two new rules in effect for “qualified mortgages” or QMs, one that affects the amount that lenders can charge and one that affects the amount the buyer can borrow. The change mandates that lenders cannot charge fees of more than 3 percent of the loan amount. This limit such mortgage charges as underwriting fees and origination fees, but excludes title and attorney fees. This has most of the mortgage industry in an uproar because it limits what a mortgage company or bank can charge a consumer. Personally, I believe that this is a good …

You decide it’s time to finally place your property on the market and contact a real estate broker to list it. The Realtor explains the listing contract to you, which is a legally binding contract and is enforceable under United States laws. The contract should always include basic information such as the parties’ names and a sales price along with being signed by all parties involved. Make sure the terms are specific. In Illinois, a contract written for more than one year can, or one that is automatically renewable after one year, can be determined void. One of the biggest …

Last month we talked about all the information you can find from a death notice, and all the information you probably won’t find. I spent a lot of time this summer and fall looking for death notices and then visiting the graves of the dearly departed. I have found that both can lead the curious genealogist to the names of other relatives who you might not have known about. The death notice might list the names of other relatives who have passed away, and the gravesite might have other people in the same lot that are related that you didn’t …

On Oct. 17, lawmakers finally passed an amendment to increase the debt ceiling and reopen the government, which had been closed since Oct. 1. Reports were telling us that if the U.S. had defaulted, we would have seen mortgage rates spike. Since the lawmakers came together and raised the debt ceiling, one would think that everything is fine and that we should be carrying on just like we did before, but that’s not the case. The government shutdown came at a time when the Fed was still very worried about the economy’s weak state. This costly game of chicken between …

How will Obamacare impact the estate planning you already have? How will Obamacare affect seniors, boomers, and their Medicare? What are the steps you should take right now to protect you and your family so you do not go broke, lose your home and leave your family without a dime? The biggest fear that many people have today is of having their life savings wiped out by a debilitating illness or an extended stay in a nursing home. Add to that the uncertainty brought on by the advent of Obamacare, and many people are tempted to engage in incorrect or …

You scrimp and save for years, and you finally purchase your dream home, but then an incident or series of incidents comes along, causing you to fall behind on your payments. Instead of helping, many lenders will start the foreclosure process on your property. What should you do? First and foremost: Never ignore the lender! Usually, around 30 days after missing your first payment, the lender will begin trying to reach you either through snail mail or telephone. Ignoring their letters and calls will only make the situation worse. Think like the lender for a moment. If they are contacting …

In a number of recent columns, I have mentioned that one of the steps is to go out and find the death notice. It took a couple of e-mails asking “um ok. How DO you find the death notice?” to get me to thinking that I need to explain this process to you. The death notice is a great tool for finding the names of the descendants of long-lost relatives. It’s not guaranteed and never comprehensive, but it’s always worth looking for. From a death notice, you can (most of the time) find the following: * Maiden names — Most …

In a few columns, I talked about finding free birth, marriage and death certificates for Cook County. Some time ago, they pulled the free certificates off the familysearch.org website. Not to fear. Thanks to the Family History Center located in Wilmette, you can find some of the certificates. Hours and location can be found at the center web site at http://www.wilmettefhc.org/. The procedure is very simple and I can speak for its effectiveness because I have found hundreds of certificates I need, and all I paid was the gas to get there. You need the following tools: * Name of …

On Sept. 18, the Federal Reserve ended their two-day meeting and shocked the financial markets by deciding not to begin tapering their asset purchases. The Federal Reserve has been buying mortgage and treasury bonds off and on since 2009 as part of a strategy known as Quantitative Easing (QE), which was designed to push rates down and spur the economy. In the most recent QE move, which took place in September 2012, called QEIII, the Fed announced that it was going to be buying a total of $85 billion in bonds per month ($40 billion in mortgage bonds, $45 billion …

Warning: You can owe capital gains taxes even if your estate doesn’t owe estate taxes. How does this unwelcome surprise happen? Let’s look at an example: Dad died last year. Mom died 10 years ago, before Dad. They had “A/B trusts,” which were recommended to them by their lawyer. The “A Trust,” called the Survivor’s Trust, belonged to Dad, and the “B Trust,” called the Decedent’s Trust, belonged to Mom, because she died first. Mom owned the house and stocks at her death 10 years, which have steadily increased in value, even after Dad’s death. Problem: Even though Mom had …