It takes a lot of time and effort to accomplish a successful short sale. Cooperation and hard work is needed. The seller and lender are both in tough positions. The seller can no longer afford their home and can not pay the mortgage. The lender has no desire to take the home or go through costly foreclosure proceedings.

The seller has to start the ball rolling by finding the right department and person within their lender to assist in this process. It takes many phone calls and letters to get a person with authority from the lender. Also, do not make the mistake of trying to go through the lenders mortgage work out department if you really just need to get out of the property and mortgage.

The seller has to provide the lender with many documents before lenders even consider the option of a short sale. Some of these documents include: (1) preliminary net sheet, (2) hardship letter, (3) proof of income and assets, (4) copies of bank statements, (5) comparative market analysis, and (6) letter of authorization.

The seller should contact a real estate agent, accountant and attorney. Many agents will reduce their commission amount on a listing that needs to sell short. Accountants can explain and go over the tax ramifications (which vary for each individual). Attorneys can help negotiate with the lender and buyer, determine if the loan qualifies for a deficiency judgment, work within foreclosure proceeding, and close the transaction.

Be aware that the lender is not in a hurry to agree to a short sale. The lender will take as much time as it wants and will periodically ask for more information. Lenders will only agree to a short sale if it makes financial sense.

The buyer has to have a lot of patience, be willing to cooperate with the lender and, most importantly, have the money to purchase the real property.

• Contractors bringing a claim against lenders, purchasers and encumbrances must (1) record claim or bring suit within 4 months of the last day completed work, and (2) file suit within 2 years. Contractors bringing a claim against the owner must file suit within 2 years.

• Subcontractors bringing a claim against owner occupied single family residents must give notice of lien to the occupant of the resident within 60 days of first furnishing materials or labor. Subcontractors bringing a claim against owner, lender, purchaser and encumbrances must (1) give notice of lien within 90 days of the last day completed work, (2) record claim or bring suit within 4 months of the last day work completed, (3) if no notice is given, subcontractor has lien for amount shown on contractor’s sworn statement; and (4) file suit within 2 years.

• Demand for suit. Any party of interest can demand that the claimant file suit to enforce their lien within 30 days or the lien is forfeited.

• Private construction lien claims attach to the real property.

• Time Requirements are Jurisdictional; thus, if you miss a date, the courts have no authority to enforce your rights.

B. Perfecting a Lien Claim – Public Construction Projects

• There is no time period for providing Notice of Lien.

• Give written notice of lien to public entity.

• For State Project – must provide sworn statement of claim

• Upon receiving the Notice, the public entity must hold all monies or other form of payment due the general contractor for 90 days. If no suit is filed within 90 days the public entity can release the money. If suit is filed within the 90 days the public entity must hold the funds until the final adjudication of the suit or may deposit the funds with the clerk of the court where the suit was filed.

• If the public entity no longer has any contract funds at the time it receives the notice, then there is no recovery.

• Must file suit for accounting within 90 days of giving Notice of Lien. The public entity does not have to be a party to the lawsuit. The state of Illinois cannot be a defendant, but other public entities may.

• On State Projects, suit shall be commenced and a copy of the complaint must be delivered to the Director not less than fifteen days prior to the date when the appropriation from which the money is to be paid will lapse.

• A public lien is a claim against money, bonds, warrants, or other means of payment from the public body.

• Mechanics lien’s are not permitted against Federal Buildings.

C. The Miller Act governs Federal construction project.

• Every person who furnished labor or material has a right to sue under the Miller Act against a payment bond upon the expiration of 90 days after his last day of work.

• A sub-subcontractor must provide the general contractor written notice of its Miller Act claim within 90 days of his last day of work.

• The Miller Act provides that no suit shall be commenced after the expiration of one year after the day on which the last of the labor was performed or material was supplied.

• The Miller Act’s requirement of bringing suit within the prescribed time is a condition precedent to the right to maintain the action.

If we want to go back to the beginning of it all the story goes like this: I was born in Evanston, lived in Rogers Park, at 4 years old moved to McHenry with my family, went to Landmark, Valley View, Parkland, and Marian Central Catholic High School, then went to DePaul University for undergrad and DePaul Law School for Law School.

Don’t worry, my education didn’t stop there. I had some of the best mentors in the practice of law: Paul Brocksmith taught me how to write as a lawyer, Marc Lipinski taught me how to stand up for my clients no matter what and who gave me the education in the Fred Lane Trial Techniques class for professionals. The National Association of Women in Construction taught me through their blue print reading course and I became certified as a construction industry technician (Not that you need any additional certifications to be a lawyer in the State of Illinois). While I was blooming as an amazing trial attorney, other people started to recognize gifts in me that I did not even see.

Feel free to look at my results to see some of the things I have done. I thank Harry McKee for recognizing how good I am at trial early on in my career. It was before Judge Pallmeyer in Federal Court, and I was just out of school. Harry was my boss, at the time, and was generous enough to allow me, a young attorney, to question the witnesses. What was even more amazing when he came back to the office and told his partners that I have talent. YEAH for me… but more YEAH for the client.

I have enjoyed an active trial practice for the last eight years. Sometimes cases do have to go to trial, but not all of them. Alternative dispute resolutions are a great format to work out matters.

Another former boss convinced me how well I relate to people… and to take the 40 hour mediation training course from DePaul University College of Law Center for Dispute Resolution certification (Not that you need any additional certifications to be a lawyer in the State of Illinois). Listening to the needs and interests behind the problem settle disputes with much more control and power to the parties involved.

No matter what your legal need, it’s likely that I can help you. I guaranty that I will listen to you. If desired, we can come up with an action plan from there. Give me a call (815) 403-6866.