Legal Question in Real Estate Law in Illinois

Re: Lawsuit with Neighborhood gold program user

Though I am not familiar with this particular program, I would guess it is a downpayment assistance program. Generally, those work as follows: You agree to sell your house for $75,000. The purchaser agrees to pay $80,000 if you make a "donation" of $5,000 to the downpayment program. Then the downpayment program makes a "gift" to the borrower to assist with downpayment and closing costs. Bottom line is still $75,000 for you, but the purchaser needs to come up with less downpayment.

In your case the purchaser decided not to use that program. What probably should have happened is that the purchase price should have been reduced to the original $75,000. If I am incorrect about this program, you might want to contact me or repost, specifying exactly how this program works, rather than just referring to its name.

And yes, you can always represent yourself, much as you can remove your own tonsils if you like. If you have the expertise to do so, fine--go get 'em. If you have never performed a tonsilectomy, or been involved in legal proceedings, it is likely you'll find you've hurt yourself quite badly and made a bit of a mess in both cases.

Re: Lawsuit with Neighborhood gold program user

Had this issue arisin at closing, the other party may have had a better case. Unless there is an express term in your contract that provides that all or portions of the contract survive closing, there is a concept under Illinois law, called "merging into the deed", that makes all issues not preserved on the four corners of the deed moot. Also, in order to close, your buyer may have signed a RESPA or HUD-1 statement. This form is required only in deals involving a commercial lender, but may have been used for convenience in your "cash" deal. If so, the buyer signed that form admitting that the figures were correct.

Based on these two issues, you probably have a valid defense. Having said that, those with unlimited pocketbooks or "free" legal services can sometimes get what they want just because of the costs of litigation. You should meet with a real estate litigator to review the documents and give you an idea of the costs of a defense and the likelihood of sucess.

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