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Three Ways to Avoid Foreclosure

Posted on in Arlington Heights Foreclosure Attorney

Lake County foreclosure attorneysWhen a homeowner cannot afford to make his or her mortgage payments, the home may go into foreclosure. In short, this means the homeowner's mortgage lender takes possession of the home. However, this is not an instantaneous or even a quick process. The foreclosure process can take well over a year to complete in Illinois and early in the process, a homeowner has some options that can allow him or her to keep the home. 

In the state of Illinois, all foreclosures are judicial foreclosures, which means that the lenders must go through the courts to complete the foreclosure process. If your lender has filed a foreclosure action against you, or is preparing to do so, here are three ways that you can stop the proceedings and possibly remain in your home. 

Modify Your Mortgage Loan

One way to steer yourself away from foreclosure is to modify your mortgage loan so it becomes easier for you to make your monthly payments. This can be done by lowering the interest rate, lowering the amount of principal for the loan, or extending its term. Sometimes, the borrower can make a single balloon payment to cover his or her missed payments or add them to other payments through the loan's life to catch up.

Negotiate With Your Lender to Avoid Foreclosure

If you are in danger of going into foreclosure, you need to be communicating with your lender. If you cannot modify your mortgage loan to make it easier to pay, talk to your lender about other ways you can get caught up on the payments and avoid foreclosure. Be truthful about your situation: If you have lost your job, tell your lender this when you ask for temporary assistance.

You can consider selling the home as a short sale or completing a deed in lieu of foreclosure, which means that you release the title to the lender in exchange for being released from the mortgage contract. In both of these scenarios, you will have to leave the home.

File for Bankruptcy

Filing for bankruptcy is a serious choice, but it can be the right choice. When you file for bankruptcy, an automatic stay goes into effect. This will stop the foreclosure process. Your lender may file a motion for relief from the stay, reinstating the process, but this is not an instant process and in any case, filing for bankruptcy will give you time to potentially negotiate new mortgage terms or work out one of the alternatives to foreclosure discussed above.

Work With an Experienced Libertyville Foreclosure Lawyer

If you are in a position with your mortgage that has you facing foreclosure, work with an experienced Lake County foreclosure defense lawyer to determine your options. Bankruptcy might be a viable option for you, but there could be other, better choices available as well. Call 847-549-0000 to schedule a free consultation with the team at Newland & Newland, L.L.P. today.





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