1512 Artaius Parkway, Suite 300,
Libertyville, IL 60048

Call for a FREE Phone Consultation

847-549-0000

Subscribe to this list via RSS Blog posts tagged in preventing foreclosure

Libertyville foreclosure defense attorneysIf you financed the purchase of your home with a mortgage loan, you probably signed what seemed to be mountains of paperwork. Buried in each document and hidden in confusing language were the terms and conditions of your loan and what would happen if you failed to make the required payments. Off the top of your head, you might not be able to recall all of the specific details, but you probably realize that if you do not keep up with your mortgage, the loan will go into default. If you stay in default for long enough, the lender will initiate foreclosure proceedings and eventually take your home.

With this in mind, it would seem that defaulting on your mortgage is something that should be avoided at all costs. In some situations, however, a strategic default could help you find a way out of a difficult situation.

Understanding Strategic Default

By definition, a strategic default occurs when a borrower intentionally allows his or her mortgage to default despite having the money to make the payments. The terms “strategic default” and “strategic foreclosure” are often used interchangeably, but they are not really the same thing. It is possible for a person who decides to use a strategic default to completely walk away from the property and allow the bank to foreclose, but not every strategic default ends in foreclosure.

...

Waukegan short sale attorneysFalling behind on your mortgage can be a source of tremendous anxiety. Most homebuyers are fully aware that failing to make mortgage payments will eventually result in the lender foreclosing on the loan, seizing the home, and selling it at auction. If you are currently struggling to stay current on your mortgage payments, or if your lender has initiated foreclosure proceedings, you might be able to negotiate a short sale, which could allow you to avoid several unpleasant realities.

What Is a Short Sale?

In simple terms, a short sale is the sale of property for a price that is less than what the owner owes on his or her mortgage. Before a short sale can be completed, the lender must agree to the sale. Additionally, in most cases, the lender will agree to accept the proceeds of the sale and forgive any shortfall between the sale price and the remaining balance of the mortgage. For example, if you have $200,000 left on your mortgage but the most you could get for your home right now is $175,000, you would be $25,000 “short.” You would need to convince your lender that this is the best you can do so that the lender will agree not to come after you for the remaining $25,000.

Benefits of a Short Sale

It is important to understand that the logistics of a short sale are much like those of any other residential real estate transaction. You, as the owner, are responsible for getting the house listed, inspected, repaired, etc.—just as you would be if you were not upside down on your mortgage. While this might seem overwhelming, it also means that you are in control of the sale. You get to choose the offers to which you respond and, ultimately, who buys your house. In doing so, you get sell your home with respect and dignity while avoiding the dreaded stigma of foreclosure.

...
AFDA BBB IRELA Illinois State Bar Association Illinois Trial Lawyers Asscociation Manta Member NACBA North western suburban bar association Top One
Back to Top