FORECLOSURE

You own property that for some good reason you cannot make payments on. The lender who has your mortgage has notified you that you are behind in making your payments and has started the foreclosure process to get paid what is owed to them. You have options at this point. Some of those options are the following:

• Refinance your property and payoff the exiting loan and associated lenders costs and fees.  If you have equity you may be able to obtain a new loan. If not, then talk to your lender and ask if he will agree to re-structure your existing loan and enable you to retain your property.

• Sell your property. If you have enough equity to cover the costs of the sale. A good agent can provide you with an estimate of your closing costs. And your lender will provide you with your loan payoff amount and other fees and expenses. By using this method, you can possibly leave with some of your equity. Be sure to check to see if you have any prepayment penalties that may apply if so these would have to be included in your expenses to sell. Properties that are listed for sale usually take from 30-90 days to close so if you use this option the sooner your start to market your property the better. You would want to have your property sold and closed prior to a Sheriff’s sale of the property.

Click here for : Questions and Answers on Home Foreclosure and Debt Cancellation information from the IRS

The foreclosure process takes time, but it can pass fast, so if you want to stop the process it is imperative that you act quickly. Why would you want to give up any equity that you have accumulated by walking away from your property? If you don’t take action, you will loose your equity.

Another good reason not to allow a foreclosure is that if your debit owed (i.e.: mortgage payoff, and all of the expenses your lender incurred, plus any interest due) is greater than the amount the lender gets after the Sheriff’s sale the lender may ask for a personal deficiency judgment for the difference against all parties listed on the mortgage. This means you still have an obligation to pay the lender even though you no longer own the property.

If you need help in finding someone to refinance your home, or would like a market analysis of your home including potential closing costs please contact me. I can be reached everyday of the week at the following phone: 847-722-8050. If I don’t answer you can leave a message and I promise I will call you back. Any information you share with me will be kept confidential unless you specify otherwise.

For specifics on the foreclosure process you can review the Illinois State Statutes, and by all means consult an attorney for help through the foreclosure process. I am not an attorney and only an attorney can provide you with the legal advice you may need. If you don’t have an attorney and need to find one, I can provide you with a list of attorneys that can help, or you can find one on your own.

Here is a link to the Illinois Compiled Statues  for addtional information.