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Facing Foreclosure: Exploring Your Options with an Experienced Illinois Attorney

 Posted on May 29, 2014 in Foreclosure

Unfortunately when a homeowner is facing dire straights and facing foreclosure, far too often those seeking mortgage assistance fall victim to experienced scam artists. These experts are prey on the homeowner's emotional state to drain you of your money and your home but also leaving your liable for your mortgage debt.

To alleviate falling victim to a scam artist that could only make the overall situation worse, it may be in your best interest to consult with an experienced foreclosure attorney to further discuss your options under the federally funded Home Affordable Foreclosure Alternatives (HAFA) Program or the Home Affordable Modification Program (HAMP).

These programs, initiated in 2009 at the height of the real estate bubble have been extended through 2014. Either program could be the catalyst to vault you out of the financial hardship. Perhaps before meeting with an attorney the following brief synopses may provide you with a brief introduction to both programs.

Home Affordable Foreclosure Alternatives Program

HAFA permits the transition to more affordable housing if the event you can no longer afford your current mortgage. The program provides two options to assist with this goal, the first, a short sale or secondly, a Deed-in-Lieu (DIL) of foreclosure.

The short sale options provides you the opportunity to sell your home for a lesser amount agreed upon by your lender. The DIL option requires you to relinquish your ownership by transitioning your home's title to your lender.

Opting for either of these options releases you from your original promissory note with your lender and has less impact on your credit report. It is possible that at the end of the process HAFA may provide you with up to $3,000 to cover relocation expenses.

Eligibility Requirements:

  • Mortgage is owned or guaranteed by either Fannie Mae or Freddie Mac or one of the 100 participating lenders,
  • Mortgage was obtained on or before January 1, 2009,
  • Mortgage obligation owed is less than $729,750 for a primary residence,
  • Mortgage is not for a residence purchased within the past 12 months,
  • Proof of financial hardship,
  • No record of a felony within the past 10 years.

Home Affordable Modification Program

HAMP was drafted to assist homeowners who can longer satisfy their monthly mortgage payments. If the homeowner is not receiving unemployment compensation but is still struggling with their obligation, HAMP may provide relief by lowering your monthly payment.

Established protocols for the applicant include residing at the home and involving the lender. If your lender is agreeable to the evaluation process, the homeowner may be able to secure a more affordable and sustainable payment for the long-term, thus keeping their home mortgage within reach.

Eligibility Requirements:

  • Mortgage was obtained on or before January 1, 2009,
  • Mortgage obligation owed is less than $729,750 for a primary residence,
  • The property has not been condemned and is in habitable condition,
  • Proof of financial hardship demonstrating inability to pay original monthly amount,
  • Proof of sustainable income,
  • No record of a felony within the past 10 years.

The possible loss of your home due to financial hardship can be devastating. Opting for the “too good to be true” schemes offered by unscrupulous scam artists will only lead to emotional strife, loss of the home and unresolved debt. Opting to contact an experienced foreclosure attorney is the first step in seeking the emotional and financial support available to alleviate the threat of foreclosure which can stay on your credit report for up to 10 years, causing you even more emotional distress and financial difficulties.

The attorneys at Newland & Newland, LLP understand this was not the situation you had envisioned when you purchased your home. We also understand the many contributing factors that may have led you to your current situation. With over two decades of legal experience we will work diligently to find the best possible solution for you and your family. We can explore the federally funded programs. Contact us today to explore your best course of action.

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