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Possible Defenses Against Home Foreclosure in Illinois

Posted on in Foreclosure

Lake County foData shows that approximately one in every 2,453 homes in the United States will be foreclosed on at some point. The problem is even more serious in Illinois, where one in every 1,336 homes will be foreclosed on according to the current foreclosure rate. Having your home foreclosed on can be an absolutely devastating ordeal to endure. Unfortunately, many homeowners do not understand what their rights are when it comes to home foreclosure. They may assume that they “deserve” to lose their home because they have missed mortgage payments. However, mistakes are prevalent in the mortgage servicing industry, and some individuals facing a foreclosure may be the victim of such an error. If you have been threatened with foreclosure, you should know that there are several foreclosure defenses that could  help you keep your home.

Your Mortgage Servicer Made a Serious Error

Although many people do not realize it until it happens to them, mortgage servicers sometimes make huge oversights and errors. If you have been affected by one of the following mistakes, you may have a potential defense against foreclosure:

You were the victim of “dual tracking.” The term  dual tracking refers to a situation in which a mortgage servicer continues to foreclose on an individual’s home while also considering his or her application for a loan modification, short sale, deed in lieu of foreclosure, or other foreclosure avoidance option. Dual tracking used to happen all the time, but federal law now limits the circumstances in which a mortgage servicer can pursue foreclosure while simultaneously negotiating an alternative to foreclosure.

  • Your mortgage payments were credited to another individual. If you were not actually delinquent to the degree claimed by the foreclosing party, you may be able to challenge the foreclosure.
  • The mortgage servicer imposed excessive fees or fees that are not permitted by mortgage contract.
  • The mortgage servicer has greatly exaggerated the amount you must pay in order to reinstate your mortgage.

The Foreclosing Party Failed to Follow Illinois Law or Lacks Standing

Like every state, Illinois has laws that dictate the rules and regulations regarding foreclosures. If the foreclosing party did not adhere to these laws when bringing a foreclosure action, the homeowner may be able to challenge the foreclosure. If a major error was made by the foreclosing party, the court can require them to start the foreclosure process over from the beginning. The loan holder is the only party that has the authority to foreclose a home. If a foreclosing party cannot prove that it is the loan holder, the party has no legal right to foreclose. For example, if a bank cannot show the promissory note or endorsements associated with your loan, you may be able to fight the foreclosure.

Contact a Lake County Foreclosure Attorney

If you are facing foreclosure, contact an experienced Gurnee real estate lawyer at Newland & Newland, L.L.P. to learn about your legal options. Call 847-549-0000 to schedule a free, confidential consultation.

 

Sources:

https://www.realtytrac.com/statsandtrends/foreclosuretrends/il/

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

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