For this year, Illinois recorded the highest foreclosure rate in all states of America. According to an established local paper, out of every 298 homeowners in Illinois goes on mortgage default and receives foreclosure notice. Delivery of default notices increased by 18 percent, whereas bank repossession escalated by 41%. Though saddening, the truth is that property foreclosure is among the top problems for families in Illinois today.
If you’re one of these homeowners who are currently facing foreclosure in our state, here are some important things that you might need to know about foreclosure defense.
Before discussing anything further, it is better to define clearly what foreclosure is. Foreclosure is the process of acquiring payment for an unpaid loan by forcibly selling or repossessing a person’s property used as collateral for the loan. After missing payment for three to five times, a lender has the right to file or pursue foreclosure against the person holding the debt. This is sanctioned and enforced by the state and federal authorities mainly to protect commercial establishments and business owners engaged in the lending business.
However not all lenders can foreclose their debtors’ home, the same way that not all homeowners can be forced out of their properties by their mortgagee or lien holder. The federal law gives homeowners the right to defend their properties and prevent it from being closed upon through proper court process.
How to Stop Foreclosure in Illinois
In Illinois, the main state law that governs foreclosure defense process is called “Illinois Mortgage Foreclosure Act”. This statutory law aims to protect citizens by ensuring that their rights to speak their case and defend their properties are maintained during the foreclosure hearing.
Creditors cannot readily kick out people from their homes. Before they can even put a finger on a property, the creditor must follow the steps involved for formally filing a foreclosure complaint. Normally, they can file complaint against a debtor after the person misses three consecutive payments. They must provide the legal documents needed for their complaint such as the signed mortgage agreement, the promissory note, and the complete payment history among others. After that, they will have to follow-through with other paper works before a court proceeding takes place.
A debtor or homeowner will immediately receive a copy of the foreclosure complaint filed against them. In fact even before a complaint is filed, creditors usually notify their debtors about their plans for legal action. Upon receiving this notice, the debtor should immediately work on ways on how to defend their properties if they want to maintain their home.
The court allows debtors 90 days to make the necessary payment for their balance. This is formally known as the right of reinstatement. During this period, the debtor can strategize with their Foreclosure lawyer on how to avoid the foreclosure. Some of the possible solutions are as follows:
1. Loan Modification
2. Deed in Lieu of Foreclosure
3. Filing bankcruptcy
4. Opting for Short Sales
Depending on the situation at hand, legal counsels would usually provide advice in line with these four strategies. Your preferences and financial capacity would also matter. If you can sustain court hearings and pay for your standing balance, then there is a greater chance that you’ll keep your home. Creditors would normally be happy to settle loans if the debtor can pay for the amount that they have borrowed.
During the court proceedings, competent foreclosure defense lawyers would also try to delay the foreclosure process through a litigation technique called probing depositions. They would scrutinize every detail of your mortgage transaction and try to find loopholes or mistakes incurred during the approval and signing of loans. Perhaps the best thing that you can do is to get highly competent Chicago Foreclosure defense attorney for your case. It is also preferable that he/she has vast practical experience as a Loan Modification attorney in Illinois so that you get the upperhand if negotiation pushes through.
Chicago Foreclosure Defense