Learn the Steps to Avoid Losing Your Home to Illinois Foreclosure

Chicago Mortgage Foreclosure Attorneys

If you are facing foreclosure, don't give up hope just yet. There are ways you can work to keep your home. Before signing away your deed or allowing the bank to foreclose on your house, contact an experienced foreclosure attorney to discuss the options that are available to you. Depending on your circumstances, keeping your home can be fairly simple or require a more complicated strategy.

The laws that govern foreclosure in Illinois are written into Chapter 735 of the Illinois Code of Civil Procedures. The foreclosure process takes about 15 months to complete from the date of the second missed mortgage payment to the order of eviction.

Start 2015 right by taking control of your finances and getting yourself away from foreclosure. Your house is important and it is in your best interest to do everything you can to stay in it.

Discuss Your Case With Your Mortgage Lender

Explain why you cannot make your mortgage payments to your lender. If you are open and honest, he or she may opt to work with you to help avoid foreclosure. Depending on your means and individual circumstances, your lender might offer to freeze your payments or to have you make one lump sum payment. You might also be able to change your interest rate or extend the amortization period of your loan. This is known as a loan modification.

Prioritize Your Debts

Always pay your mortgage first. This will demonstrate to the bank that you can make your payments and that you put a high priority on maintaining and paying for your home. After you make sure your mortgage is paid, you can focus on other debts like credit card and student loan debt.

Seek Help from a Debt Management or Credit Counseling Service, But Beware of Scams

There are lots of individuals and companies out there offering to help you reduce your debt and build a budget. These services are not all the same. Understand the difference between legitimate credit counselors and for-profit companies by searching them online and reading what others have had to say about them. You can also discuss any offers you find with your attorney to get his or her opinion about whether or not a debt management or credit counseling group is legitimate. Never, ever agree to an offer by another to purchase your house and sell it back to you or any other offer that involves relinquishing the title of your home. These are scams and will only benefit the individual who made the offer.

Be Proactive

Call an experienced foreclosure attorney as soon as possible to learn more about your legal rights as a homeowner. If you are not on top of your foreclosure case, you are less likely to successfully work out a solution and keep your home. Stay up to date on everything that's happening with your house and if you do not understand a term or a proposal, research it or ask for help from a professional to understand. It is up to you to educate yourself about your foreclosure and to meet all your deadlines. Make sure you understand the key terms related to foreclosure and refinancing such as reinstatement, grace period, and forbearance.

Refinance Your Mortgage

Talk to your lender to find out if you are eligible to refinance your mortgage. This might mean restructuring your payments or changing your interest rate. Remember, refinancing could end up costing you more money than simply keeping your current mortgage agreement because refinancing may require that you pay closing costs or other fees. Do not agree to any refinancing plan until you have looked over it with your attorney and determined that it is the best choice for you.

Sell Your Assets

Can your family make do with only one car? Sell the other car. You do not need a timeshare or an expensive piece of art to survive. When you are facing foreclosure, keeping your home is your top priority. Sell any unnecessary assets to come up with extra money that you can put toward your mortgage debt.

Get All Offers and Agreements in Writing

Get any proposal or agreement from your lender in writing. Make sure these documents are signed and dated. If you need to recall one of these documents or use them in court, they are only valid if you can prove that they came from your lender or your attorney.

Chicago Foreclosure Attorneys

If you are facing Illinois foreclosure and want to remain in your home, call Katz Law Office, Ltd. at 773-364-6626 today for your free initial consultation. When you call, you will have the opportunity to discuss your foreclosure circumstances with one of our firm's experienced Chicago foreclosure attorneys and learn more about your options as an Illinois homeowner. Remember, be proactive. Do not wait another day to start working with a knowledgeable attorney to save your home.