Consumer education limits poor choices.

Tomacor has helped create the Illinois Predatory Lending Law while assisting the U.S. Attorney in pursuing predatory criminals.

A west side real estate company bought FHA repossessed property, then lent down payment money to unsuspecting consumers who bought these properties at above market prices thinking they were “rehabbed”, when they were only cosmetically altered. As the properties fell down, literally, around their ears, the unsuspecting buyers were forced into foreclosure. This scam was run hundreds of times costing millions of dollars. Real estate agents received their commission on the sale and profit from the “rehab” – the rehab that never took place.

Home inspection has become common practice in Illinois with most real estate agents recommending it. Specific areas in the city with few inspections include the west and south sides where some consumers struggle to afford the extra $300-$500 for a quality inspection. Some are openly discouraged by sellers and their representatives from getting a home inspection. Conflicted home inspectors referred by crooked agents can never identify problems. Their money comes from the real estate agent referral process.

Having said all that, Tomacor encourages people who buy residential real estate today to just be careful. The prices are cheap, and the mortgages cheaper – but what’s the condition?

Buyers should memorize the phrase “caveat emptor”. Nowhere in the marketplace can you lose your shirt as fast as in real estate. Nowhere does the consumer, often times your Average Joe or Jill, need more protection than in the real estate market. If you’re buying real estate, you must protect yourself by hiring independent inspectors, attorneys, mortgage brokers and real estate agents. Professional real estate attorneys and independent home inspectors can provide you with budgets for repairs and help you negotiate the real estate purchasing pitfalls even if they come at you at 100 mph.

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