When you’re facing foreclosure, one of the most important things you can do is to reach out to a Chicago foreclosure lawyer at Therman Law offices to help you navigate the legal process and protect your rights. Unfortunately, so many people with foreclosures haven’t taken this step and end up dealing with foreclosure alone, which almost always results in adverse consequences for them, like damaging their credit or losing their home to the bank. But if you’re faced with foreclosure, don’t make that mistake. Contact our team at Therman Law Offices, LTD today.
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Understanding Foreclosure
A foreclosure is when you lose your home to another party. There are two types of foreclosures: judicial and non-judicial. Non-judicial foreclosures (the vast majority) require you to make payments and generally only occur if you miss several payments or are more than 90 days late on your mortgage. In judicial foreclosures, there is some type of legal action involved because of unpaid taxes, overdue assessments or other issues with your property. When you have a judicial foreclosure, it can take much longer for someone else to take over ownership of your home. If you’re facing either type of foreclosure in Chicago, it’s best to get professional help from an experienced attorney.Avoiding Foreclosure
Obviously, you want to avoid foreclosure if possible. A foreclosure can be devastating to your credit rating, and it’s unlikely that you will be able to buy another home anytime soon afterward. If you are facing foreclosure on your primary residence, it’s important that you contact an attorney immediately, who can advise and assist you throughout the process. A lawyer can also help prevent further complications with your lender and make sure all of your rights are being upheld during negotiations. It is especially important to retain legal counsel if you have any mortgage refinancing options available, such as Home Affordable Refinance Program (HARP) or government-backed loan modification programs. Failing to utilize these resources could mean throwing away money for no reason at all! An experienced Chicago foreclosure lawyer can walk you through these programs and explain your options so that you don’t lose money unnecessarily or become stressed out over something that could have been avoided. The best way to fight foreclosure is by contacting a skilled professional in Illinois as soon as possible. Remember: The longer you wait, the more expensive it becomes to fight back! Contact Therman Law Offices today for assistance with your real estate needs in Chicago!Alternatives to Foreclosure
Your first line of defense when facing foreclosure is to work directly with your lender. That’s because 90% of foreclosures are resolved through short sales, deeds-in-lieu of foreclosure or loan modifications. As long as you meet certain qualifications, it’s likely that you can avoid going into foreclosure altogether and get back on track with your mortgage payments. The best way to start is by contacting your lender directly. Your lender will work with you to determine whether you qualify for one of these alternative options. If not, they’ll usually refer you to an outside company who will try and help you get caught up on your payments and keep ownership of your home in place. Hiring an attorney may not be your only option, but it is one you should consider. You can probably handle a lot of things on your own, but when it comes to foreclosure, that’s something to leave in professional hands. Without legal counsel, you may miss out on any number of valuable legal defenses and opportunities to negotiate with your lender and prolong (or even avoid) foreclosure. An attorney can make sure everything is done legally and professionally so that you have as many tools at your disposal as possible when working to prevent foreclosure. With careful planning and strong legal representation, there’s every reason to believe that you can get back on track without losing your home.Illinois’ Home Ownership Landscape
A distinct feature of Illinois law is its emphasis on transparent communication. Before any actual legal action can commence, the lender must provide a grace period, during which the homeowner can make up for missed payments. If this doesn’t happen, the lender must then send a notice of intent to begin legal proceedings, offering the homeowner a final chance to address the default. As your Chicago foreclosure lawyer knows, unlike some states that allow non-judicial foreclosures, Illinois mandates a judicial process. This means that the lender must file a lawsuit and prove their right to foreclosure in court. Homeowners are given an opportunity to present their defense, ensuring due process is maintained. This approach offers an extra layer of protection for homeowners, guaranteeing their right to a fair hearing. Illinois law offers a silver lining even after a foreclosure judgment is made. Homeowners have a redemption period, usually lasting up to seven months from the notice or three months from the judgment, whichever is later. During this period, the homeowner can buy back or “redeem” their property by paying the full mortgage amount and all associated costs. Additionally, they can also reinstate the loan by covering missed payments, late fees, and related legal fees within 90 days of the foreclosure notice. In cases where the sale of a foreclosed home doesn’t cover the outstanding loan amount, Illinois law provides certain protections for homeowners. While lenders can seek a deficiency judgment for the remaining balance, the state caps the amount they can recover. This provision helps to mitigate the financial burden on homeowners who are already grappling with the loss of their property. Homeownership challenges, especially foreclosures, can be daunting. Yet, in the heart of Illinois’ intricate legal maze, we can be a beacon of expertise and unwavering support. With our in-depth knowledge of state regulations and a genuine commitment to our clients, we ensure that every homeowner is adeptly represented and informed every step of the way.The Steps of Filing for Foreclosure
Filing for foreclosure is a process that no homeowner wants to go through as a Chicago foreclosure lawyer completely understands. Unfortunately, it is sometimes an inevitable reality. Whether due to financial difficulties, divorce, or other problems, homeowners may find themselves unable to keep up with mortgage payments. In such cases, filing for foreclosure may be the only option. Learn about the steps of the foreclosure process below.Begin The Process by Issuing the Notice of Default
When a homeowner falls behind on mortgage payments, the lender initiates the foreclosure process by issuing a notice of default. This notice serves as a warning to the homeowner that they are in breach of the loan’s terms and that the lender is considering taking legal action. The notice will typically give the homeowner a period of time, usually thirty days, to bring their mortgage payments up to date before the next step is taken. It is vital that the homeowner take this time seriously and try to reach an agreement with the lender to restructure their debt.The Homeowner Must Obtain the Lis Pendens Notice
If the homeowner does not cure the default within the notice period, the lender will proceed to file a lis pendens notice. This notice indicates that legal proceedings have been started, and the property is subject to foreclosure. At this point, the homeowner has a set number of days (typically 20-30) to respond to the notice. If the homeowner does not respond within this time frame, the foreclosure process will continue, and a court hearing will be scheduled.Time for Homeowner to Challenge Lender Proceedings
If the homeowner does respond, they may have an opportunity to challenge the lender’s proceedings, file a response with the court with the help of a Chicago foreclosure lawyer, and request a hearing. If the homeowner can show that they can catch up on their mortgage payments or find an alternative solution, the foreclosure process may be stopped. However, if the homeowner cannot come up with a solution, the court will proceed with the foreclosure process.Auctioning the Property
The final step of foreclosure is the sale of the property at auction. At this point, the homeowner has lost all possession rights to the property. The property will be sold to the highest bidder, and any proceeds will go to the lender to repay any outstanding debts. If the proceeds from the sale are greater than the amount owed to the lender, the homeowner may receive the excess funds. Filing for foreclosure is a challenging process for any homeowner. To avoid foreclosure, communication is key. The best advice is to contact the lender as soon as possible when payments cannot be made. By following the steps outlined above, homeowners can avoid common pitfalls and be better equipped to navigate the foreclosure process. Contact a Chicago foreclosure lawyer at Therman Law Offices, LTD for help.Common Misconceptions About Foreclosure
If you are facing foreclosure, you may want to get in touch with a Chicago foreclosure lawyer. The thought of losing something you worked so hard for is devastating. However, it may still be possible to save your home. Here are some common misconceptions about foreclosure.- After foreclosure begins, you can’t save your home
- Foreclosure begins after one missed payment
- Homeowners are required to leave their home after getting a foreclosure notice
- Hiring a lawyer is not necessary
- If the bank forecloses on your home, you do not owe any money
- Foreclosure always occurs because of financial irresponsibility
- You can refinance to save your home from foreclosure
Chicago Foreclosure Infographic