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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.

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Lake County loan modification lawyersAre you behind on your mortgage? If so, are you getting to the point where you are worried about the possibility of foreclosure? When you are behind on your mortgage payments, things can spiral out of your control very quickly. It is important to realize, however, that you may have options that could allow you to keep your home and to get back in good standing with your lender. One of these options is a loan modification, and a skilled Lake County lawyer can help you apply.

Your Loan Will Not Be Modified If You Do Not Apply

A loan modification, put simply, is an amendment to the terms of your loan so that you can get caught up and back on track with your mortgage. There are different types of modifications available, such as an extension of the loan’s term to reduce monthly payments, interest rate adjustment, and the capitalization of your missed payments. While each type of loan modification is different, they have one thing in common: you cannot get a modification unless you apply for one.

Unfortunately, getting your modification application complete and in front of decision-makers at your lender is not always easy. The individuals who answer the phone when you call are not always clear about what your application package needs to include or whether they have received everything you sent them. The key to resolving the situation is getting the application requirements in writing, sending your application package to your lender—using mail, fax, and email, if necessary—and following up to ensure it is received.

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Libertyville foreclosure defense lawyersFalling behind on your mortgage payments can lead to serious trouble. If you are far enough behind that you are in default, the lender could initiate foreclosure and eventually seize your home. During the foreclosure process, however, you as the borrower have certain rights, even though you are in default on your loan. One of these rights is the right to negotiate a reinstatement of your mortgage, which will stop the foreclosure proceedings.

Initiating Foreclosure

A single missed mortgage payment is probably not going to be a serious problem. Your lender will more than likely work with you to get your missed payment caught up, even if it means paying a little extra on each of the next few payments. Likewise, two missed payments can usually be taken care of in a similar manner. Once you reach a third missed payment, however, and venture into the period of 60 to 120 days late, your lender is likely to notify you that your mortgage is in default. The lender will also send you a notice of intent to foreclose.

After you have passed the point of being 120 days late, you will probably be served with a summons and a copy of the civil complaint indicating that your lender has initiated foreclosure proceedings. In most cases, you will be served personally, but avoiding process servers or sheriff’s deputies will not stop the case from moving forward. If you cannot be served in person, your lender can file a public notice in the newspaper to serves as your formal notice. Once you have been notified, you have 30 days to respond. You also have 90 days during which you have the right to reinstate your loan.

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Lake County foreclosure defense attorneyIf you have fallen behind on your mortgage payments to the point where you are in default on your loan, you may be facing the possibility of a foreclosure. You probably know that if your lender forecloses on your home loan, the house will be sold and the proceeds of the sale will go to the lender. Meanwhile, you will be left with no place to live and a serious mark on your credit history.

The reality is that many people who are facing foreclosure also have a large amount of other debt as well. Such debts often include credit card balances, medical bills, personal loans, and student loans. In cases like these, it is not uncommon for a person to begin thinking about filing for bankruptcy under Chapter 7 of the United States Bankruptcy Code. Filing for Chapter 7 bankruptcy could help you avoid foreclosure in certain situations, and experienced foreclosure defense attorney can assist you in exploring your available options.

An Automatic Stay

When you file for any type of bankruptcy, the bankruptcy court will immediately put a stay on all debt collections activities being pursued against you. This includes foreclosure proceedings, even if they have already been initiated by your lender. If your lender continues the proceedings once the stay has been enacted, the lender is in violation of federal law. Sanctions are possible in such cases. The stay is not permanent, however, and your lender can request that the bankruptcy court lift the stay and allow the foreclosure proceedings to continue.

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