What Is The Process Of Foreclosure In Illinois?
A foreclosure happens when you fail to pay your mortgage. If you fail to pay your mortgage, the mortgage lender will start foreclosure proceedings against you. When a foreclosure case is filed, the sheriff will serve you, the homeowner, with a summons. You then have 30 days to file your appearance and answer with the courts.
What Are Some Options For Avoiding A Foreclosure?
In order to avoid a foreclosure, I suggest that you call the mortgage company as soon as you fall behind on your payments. The mortgage lender may have loss mitigation options, such as loan modification or a repayment plan, available to you in order to avoid the filing of the foreclosure.
How Long Do I Have To Respond If I Am Served With A Foreclosure Summons?
From the time that you are served with a summons by the sheriff, you are given 30 days to file an appearance and answer.
Can I Delay The Foreclosure From Moving Forward?
You can delay the foreclosure from going forward by working with the mortgage lender to see if there are any loss mitigation options available to you. If there are none, then you can stop the foreclosure by filing a bankruptcy.
Once My Lender Begins Foreclosure Proceedings, Do I Have Any Chance Of Saving My Home?
All hope is not lost. However, you must immediately contact the mortgage lender and discuss any options that you may qualify for, such as loan modification or a repayment plan, in order to save your house. If you do not qualify for any type of program with the mortgage company, then a Chapter 13 bankruptcy will save your house.
What Are My Options If I Cannot Keep My Home?
If you cannot afford to keep your house, you can sell it, provided that you have enough equity in the house. In this case, you pay off what’s owed on the house and you keep any money that’s left over. If you owe more on your house than what it’s worth, you can do what’s called a short sale. In a short sale, the house is sold for less than what is owed on it. The mortgage lender has to approve of the short sale and the amount that is not paid is typically written off by the mortgage lender.
Can I Avoid Foreclosure By Negotiating A Lower Rate Or Obtaining A Loan Modification From My Bank?
One way to save your house and avoid foreclosure is to apply for a loan modification with the bank as soon as you see yourself in trouble. A loan modification allows you to modify the mortgage in several respects. It allows you to reduce the interest rate, defer, or even forgive the past loan amount. It allows you to reduce the principal amount that’s owed on the loan and reduce the amount of the monthly payment. Which of these items you will be approved for will depend on your factual scenario.
Is Bankruptcy An Effective Foreclosure Defense?
Bankruptcy will stop the foreclosure immediately and Chapter 13 bankruptcy will allow you to save your house by allowing you to pay the past due amount over a period not exceeding 60 months.
What Is A Deed In Lieu Of Foreclosure? How Does It Work?
A deed in lieu of foreclosure allows you to transfer the house back to the mortgage lender and the mortgage lender will then write off the amount that is owed in excess of the value of the house. However, you have to apply for a deed in lieu of foreclosure and certain requirements must be met in order to qualify. For example, you have to show that you are unable to pay the debt and that there are no additional liens on the property.
Are There Any Other Possible Defenses Or Measures To Avoid Foreclosure?
There are other defenses to foreclosure. You can go to the court where the foreclosure was filed and fight it. However, it’s limited as to what you can do. For example, a debtor will force the mortgage lender to prove that they actually have the documentation that’s necessary to prove that they are owed the money and, if it was transferred to them, that the transfer was done in accordance with the law. There are other defenses available, but it depends on your factual scenario.
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