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Libertyville foreclosure defense lawyersUPDATE: If you are considering reinstatement as an option for avoiding foreclosure, you will want to be sure to understand your rights, the deadlines that you will need to meet, and what other options may be available. The deadline for reinstating your loan is 90 days after you were served with a foreclosure notice. By this deadline, you will be required to make up the missed payments and pay other fees and expenses. In addition to late fees, you may need to pay other costs related to foreclosure proceedings, such as attorney's fees, recording fees, court costs, and the costs of a home inspection. You will need to request a quote from your lender for the total amount that must be paid to reinstate the loan. If you disagree with the amount provided in this quote, you can send a notice of error disputing the amount. Once you have met the requirements for reinstatement, the foreclosure case will be dismissed. It is important to note that after you have exercised your right to reinstatement, you will not be able to use this form of relief for five years after the date of the dismissal.

Another option that may be available is to pay off your loan in full. This is known as "redemption." To pay off the loan, you may be able to refinance your home through a loan from another lender, or you may receive a personal loan or gift from a person such as a family member. Typically, the deadline for redemption of your loan is seven months after the date you were served with a notice of foreclosure, although there may be some exceptions depending on your individual situation. As with reinstatement, you can request a payoff quote from your lender that will detail the full amount that will need to be paid, which will include the principal of the loan, any applicable late fees or interest, and foreclosure-related expenses.

If you have questions about reinstatement, redemption, loan modifications, or other options for foreclosure defense, contact our Waukegan foreclosure lawyers at 847-549-0000 to schedule a free consultation.

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Lake County foreclosure attorneysWhile the housing market has largely recovered from its most recent serious crash, many families still worry about money and how they will afford their mortgage payment every month. In some situations, money is always pretty tight, and in others, a serious accident or illness may upset the family’s financial stability. If you are struggling to pay your mortgage, you might have had someone suggest a “strategic default” as an option for you. Before you take any action, however, it is important to know what a strategic default is and what the consequences could be.

What Is a Strategic Default?

A strategic default refers to a situation in which a borrower intentionally allows his or her loan to default. The borrower deliberately falls behind on the loan as a financial strategy, not because he or she could not afford the payments. Strategic defaults are most often used when there is negative equity in the property in question. Negative equity means that the property is valued at less than the amount remaining on the mortgage loan.

Keep in mind that a strategic default is not the same thing as a consent foreclosure, though many people use the terms interchangeably. A strategic default applies to the status of the loan itself, while a consent foreclosure refers to one possible outcome of defaulting on your loan. It is possible—and it may even be your best option—to strategically default on your loan first, and then work out a consent foreclosure agreement with your lender.

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Libertyville real estate attorneysWhen you default on a loan for a commercial real estate project, it is easy to fear the worst. However, there are often many options for investors looking for assistance with getting a forbearance or a workout agreement with the lender. In order to protect your investment, however, you will need to act quickly.

Alternatives to Bankruptcy

In many parts of the country, the commercial real estate sector has continued to experience its share of challenges, leaving many businesses and investors in a cash crunch and unable to pay their loans. Some people mistakenly believe that the only way out of a default or distressed loan is bankruptcy. However, there are often other options available. 

With the help of a knowledgeable lawyer, you might be able to negotiate an agreement with the lender that avoids a foreclosure and bankruptcy. Lenders often do not want to deal with a foreclosure any more than you do. In fact, if you will eventually be able to get your loan caught up, it will usually make the most financial sense for your lender to work out some type of arrangement with you. With careful representation, you may be able to secure a forbearance agreement with the lender that gives you more time to get current on the loan.

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