What Are Your Options for Avoiding a Foreclosure in Illinois?

IL foreclosure attorney, Illinois real estate lawyer, When homeowners default on their mortgage payments, sometimes the only option for lenders is to initiate foreclosure proceedings. However, this can lead to conflict between lenders and borrowers that may result in property damage, increased expenses, and challenges related to finding a new buyer. Sometimes, it is in the best interest of both lenders and borrowers to consider other options that may prevent the need for foreclosure.

Understanding Illinois Foreclosure Alternatives

When possible, lenders may consider working with homeowners to explore options that can prevent defaulting on payments or otherwise make a foreclosure unnecessary. These options include:

  • Loan modifications: Depending on the type of loan, it may be possible to pursue a modification to the terms, including lower monthly payments, lower interest rates, and a longer payback period.
  • Forbearance: As a temporary solution, the lender may allow the borrower to make smaller monthly payments for a period of time and then make up the difference in future monthly payments.
  • Refinancing: Similar to a loan modification, refinancing may allow borrowers to lower interest rates or monthly payments, but it often requires ownership of a certain amount of equity in the home, a good credit score, and the payment of additional closing costs.
  • Short sales: In a short sale, the homeowner agrees to sell the property for less than the remaining amount of the mortgage and give all proceeds to the lender in exchange for the lender’s forgiveness of the remaining balance.
  • Acquiring the deed in lieu of foreclosure: In this option, the borrower turns the deed for the home over to the lender and is not required to make any further mortgage payments. This often saves lenders and borrowers time and court costs when compared to a foreclosure.

An experienced real estate attorney can advise lenders and borrowers as to the viability and benefits of each of these options depending on the specific situation and work toward a solution that best meets each party’s needs. When a foreclosure is necessary, we can also represent and advise lenders to ensure that correct procedures are followed throughout each step.

Contact a DuPage County Real Estate Attorney

At The Illinois Law Office of Stock, Carlson & Duff LLC, we are committed to helping buyers, sellers, and lenders in residential real estate transactions. We can work to help you avoid or manage legal conflict and ensure that the relevant processes go as smoothly as possible. Contact an experienced Wheaton residential real estate lawyer today at 630-665-2500.

 

Source:

https://www.ilga.gov/legislation/ilcs/ilcs4.asp?ActID=2017&ChapterID=56&SeqStart=107100000&SeqEnd=115800000