David C. Nelson has been practicing real estate law since 1994 and has represented clients in CCLT transactions since 2007. Attorney Nelson is a CCLT trained, endorsed and recommended attorney for CCLT transactions. Whether you are selling or buying a CCLT home or condominium, NLO Nelson Law Office is your first step in getting good legal representation.
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What is CCLT?
The CCLT is an organization within the City of Chicago that manages low to moderate income real estate properties in Chicago. The land trust essentially holds ownership of these properties, manages these properties and assists homeowners with the sale and purchase process. CCLT also offer assistance to those dealing with foreclosure or other financial hardships.
What do you need to know when selling?
When selling a CCLT property there are three things to remember: First, there is most likely and affordability rider which is in the nature of a second or third mortgage. This typically $20,000 mortgage either needs to be paid off when selling or needs to be passed to the new buyer with the approval of the Illinois Housing Development Authority. Expect a four month approval process and possibly a six month selling process when needing this to be transferred to the new buyer. Your sale price will be determined by CCLT's equations allowing a reasonable rate of return on the property most likely around 4% per year. You may not use realtors to sell your property. The selling and marketing of the CCLT property is done by the CCLT itself.
What do you need to know when buying?
Buying a CCLT property can be a tremendous value, however, this type of property ownership carries with it three very important factors: First, your lender should be either Harris, Chase, Wells Fargo or some type of lender that either has experience in lending to CCLT properties or is open to allowing their underwriters to allow the CCLT lien to be placed in first place. Traditionally Harris Bank (Now BMO Harris) was the preferred lender, however, in the last year both Chase Bank, Wells Fargo and Wintrust have shown that they are able to provide loans for these types of properties.