About Karen Coffey

Karen S. Coffey, principal of Coffey at Law, Inc., started her own law firm in 2001. She concentrates her practice in the areas of real estate closings, estate planning, small business law and FREST*. Ms. Coffey shifted her practice from litigation to transactional work almost 10 years ago because in her opinion, the system doesn’t work. “Generally speaking the side with the most money wins. When you have money, you can litigate the little guy into the ground regardless of the merits of the case. Even when the little guy wins, they rarely have the additional resources necessary to find the quickly hidden assets of the one who has done them wrong.” Ms. Coffey became interested in representing distressed sellers in real estate transactions when friends and family started coming to her for advice. When the majority of her real estate transactions became short sales, she realized it might be time to get back into the courtroom. Consequently, she has experienced first-hand how to “work the system” on behalf of the common man/woman. This shift in perspective led to the design of a new, flat fee, business model with the self-coined acronym FREST (Foreclosure Representation to Extend Stay Time). The process is designed to give the client the time they need to affect a change in their circumstances. Chicago native Ms. Coffey received her undergraduate degree magna cum laude in criminal justice with an emphasis in juvenile delinquency from Michigan State University in 1991. Karen has worked as a professional fundraiser and as a caseworker. After receiving her juris doctorate, Ms. Coffey continued her service related endeavors including work (both paid and unpaid) with the Chicago Public Schools, Little City Foundation, PAWS Chicago and the Humane Society of La Porte and Berrien Counties, Inc. She currently serves as a director for Michiana Pet Shelter, a non-profit organization. *Foreclosure Representation to Extend Stay Time

Deny. Deny? Deny!

Posted on February 2, 2012 by Karen Coffey

You are being sued by your lender for not making your mortgage payments. Welcome to foreclosure court!

Should you be like the other more than 90% of people in your circumstances and do nothing? Just ignore the lawsuit and lose your home through a default judgment (i.e., you lose because you never showed up in court)?

Most certainly not! You’ll at least go to the court hearing; see what you can find out. You are not a bad person. Either you have fallen on bad times or you just over-paid (like the rest of us). In either case, letting the property go is a good business decision. You have nothing to be ashamed of, I promise. Making the process last as long as possible is also a good business decision. SO… off to court you go, to see what you can show.

You are told that an “answer to the complaint” must be filed. Yikes! Diligently you stare at the paperwork. You see the form you received gives you three choices:

admit
deny
insufficient information to either admit or deny.

You go to work reading each paragraph of the complaint. What language is it written in? Is that Latin? It might as well be French because it looks like Greek to anyone who’s not an attorney.

The correct answer is — it is written in “Legalese.” The language of attorneys and courts where the definition of a word or phrase changes from time to time depending on the types of cases in the appeals court. Good luck with that. Oh, and in foreclosure court, when you file your answer it is a “verified” document meaning you have to SWEAR that it is “true and correct.”

Here’s another secret that the free help desk failed to mention. This is the important part so take a deep breath and read slowly and carefully.

In most proceedings if the defendant (i.e., the person being sued) says they don’t have sufficient information to know if an allegation in the complaint is true or false the plaintiff (the person bringing the lawsuit) has to prove that it is true. That is NOT the case in a foreclosure lawsuit. A sneaky trick that somehow became the law #735 ILCS 5/15-1506(a)(1). (This combination of letters and number is the “cite” or the legal way attorneys can find the law itself to make sure what the writing attorney is saying is correct.)

This statute (i.e. law) states that unless an allegation is specifically denied it is deemed admitted. “What!” I can hear you gasping. “That can’t be right.” It’s not right, but it is the law – at least in Illinois it is.

So what do you do? Well, if you’re asking for my advice I’d tell you to take 2 aspirins and call me in the morning.

Karen Coffey
Attorney-At-Law

E: kcoffey@coffeyatlaw.com
T: 773.316.7619 (direct line)
W: www.coffeyatlaw.com

New Door Locks for Tenants: Out Of The Frying Pan And Into The Fire

Posted on January 31, 2012 by Karen Coffey

You are trying your best NOT to become a “foreclosed condo in Chicago” statistic. You cut back your expenses, still not enough income to pay the mortgage. You contact your lender and attempt to become a “Short Sale Homes in Chicago” statistic…yeah, no need to get into the details on what happened or more likely did not happen with those conversations. (Do not worry, it was not you, they treat everyone that way.) You even meet with the free HUD counselors. They confirm there is not any special program for which you qualify.

As the last resort, you rent out your condominium (thank goodness there are all those other “foreclosed condo in Chicago” statistics that have the money to pay you rent). You are now living (fill in the blank):

in a smaller/cheaper rental place
with friends, with your parents
with your ex-wife or ex-husband
in the street
other.

Not the best case scenario but at least the rent you are getting from the third party keeps you from becoming a “foreclosed condo in Chicago” statistic.

What you might not have realized, however, is while you are paying – or more accurately, while your tenant is paying — your mortgage, association dues, taxes, etc.; you are now officially a Landlord. Since you have a tenant, you are accountable for your actions or inactions with regard to that tenant under all the landlord/tenant statutes that apply.

One of those statutes, the Illinois Landlord and Tenant Act, created a new Landlord obligation, effective January 2012. You — the landlord, must change the door locks for each new tenant. If you choose not to comply with this law, you could be found liable to the tenant for damages sustained where the tenant’s property is stolen and it seems that the person gained access because they had a key. To read the specific language of the law, do a search using “765 ILCS 705/15” as the search term and the statute will pop right up.

While there are some exceptions to this rule, please do not take any chances. If you are renting out your unit, become familiar with the statutes for which you are now responsible. In addition, by all means – change the locks for each new tenant. You certainly do not want to give up your home to a tenant so you stay out of foreclosure court only to have the tenant sue you.

Karen Coffey
Attorney-At-Law
773-316-7619
kcoffey@coffeyatlaw.com

Foreclosure Filings Rise 7%

Posted on November 22, 2011 by Karen Coffey

Does Your Foreclosure Defense Attorney Make the Cut?

It is all over the news. According to one of the industry experts for tracking this type of information, RealtyTrac, U.S. foreclosure filings rose seven percent (7%) in October 2011. So what does this mean? It means if you are one of the millions of homeowners who have fallen behind in their mortgage payments you better talk to an attorney and evaluate your options.

“What?” you ask. “I have options? How can that be? I owe the money….” Believe me, YOU HAVE OPTIONS!

The real question you should be asking yourself: How can I (a regular person) determine if the attorney I am speaking with (supposedly an expert in this area) actually knows what they are doing? Do they have the expertise to legally “work the system” so I can stay in my home for many years to come, despite the fact that I have not paid my mortgage payments. The Top Five List below provides some guidance and insight.

TOP FIVE LIST

You know the attorney you are speaking with should NOT be hired as your foreclosure defense attorney when…

1. They do not ask you if the mortgage was an original home loan or a refinance and if it was a refinance, if it is less than three years old.

2. You shared with them you would like to apply for a loan modification and they do not suggest using a HUD counselor (these counselors are FREE).

3. They tell you that because you did not pay your mortgage you do not have a case.

4. They tell you that it’s too late to do anything when you share your home has been auctioned off by the sheriff without first asking if the sale has been confirmed by the court and a host of other questions.

5. They will not let you pay a flat rate of $300 a month after paying the initial retainer fee of $1,500 for their services.

This is your home and it is your future. Do not let the attorneys you call for help intimidate you. Take the time to ask questions. Take the time to find an attorney who knows how to utilize the legal system to your advantage at a price that keeps you out of the poor house and in your home for as long as legally possible.

Karen Coffey
Attorney At Law
kcoffey@coffeyatlaw.com

Think Your Lender Hasn’t Filed A Lawsuit?

Posted on October 20, 2011 by Karen Coffey

On more occasions then I care to admit, I have had a potential client sitting in my office ready to
bet me money that their lender had not filed a lawsuit against them. The conversation usually goes something like this:

“I see they officially started the foreclosure process last March. According to the online docket…” I begin as calmly as I can.

“What!?” they interrupt with underlying panic in their voice. “There can’t be a foreclosure lawsuit
pending against me. I’ve been working with the bank on [fill in the blank with about 10 options].
They promised nothing would be filed while we tried to work it out!”

I wish I could claim that as the all-knowing FREST (Foreclosure Representation to Extend
Stay Time) attorney that I had a magical crystal ball showing me who is being sued for foreclosure and who is not. However, I cannot claim that because I don’t.

A little known secret (until now): Everyone has access to this information. Not only is each lawsuit a public record that can be accessed by pulling the file in the court building, more and more court systems are posting this information on the Internet!

In Cook County, IL you too can see (at no cost) if a lender has filed a foreclosure lawsuit against
you… or your neighbor… best friend… mortal enemy… you get the point.

By clicking on this link — http://bit.ly/AreYouBeingSuedByYourLender — you will be able to confirm if there is a pending foreclosure. If a lawsuit has been filed, this site provides access to the case docket (i.e. the timeline the case has followed thus far and what was filed with the court when). To obtain the correct information you must exactly follow these few easy steps after you click on the above link:

Scroll down to Division Name and choose “Chancery”
Scroll down to “Search by Name”
Click on the circle next to “defendant”
Type in the home owner’s name you wish to search (spelling matters)
Hit the “Search Now” button

Whatever you find, please remember this – knowledge is power. Now that you know, you can do
something about it!

So now what? Regardless of whether or not there is a pending lawsuit, in my opinion your best next step is to connect with a FREE HUD counselor. In Cook County, my favorite organization (to date) is the Rogers Park Community Development Corporation. www.rogersparkcdc.org. (Ask for Heather Hain-Whiteford, current director, and tell her I referred you for services. If you have anything but rave reviews, call me at 773.316.7619!) They will go over all of your options with you. Together, they will help you sort out which options are viable alternatives and guide you through what paperwork you will need to collect for each strategy available to you.

Do not neglect to visit my website www.coffeyatlaw.com to learn more about FREST — (Foreclosure Representation to Extend Stay Time). You are not in this alone. There are free (HUD counselor) and flat-fee based services (my law firm) that will help you through it.

A final piece of advice: if you see your neighbor’s name on the Cook County Clerk’s website and their house is in foreclosure — Be a good neighbor and forward this article to them!

Karen Coffey
Attorney at Law

Foreclosed Homes In Chicago

A Resource To Navigate The Distressed Real Estate Market In Chicago

Author Archives: Karen Coffey

About Karen Coffey

Deny. Deny? Deny!

New Door Locks for Tenants: Out Of The Frying Pan And Into The Fire

Foreclosure Filings Rise 7%

Think Your Lender Hasn’t Filed A Lawsuit?