Behind on Your Mortgage Payments and Facing Foreclosure in Chicago?

The Top 6 Foreclosure Alternatives

1. Get Help! Don’t ignore the problem. The further you fall behind on your payments, it will be harder to reinstate your loan and more likely that your lender will decide to foreclose. Contact an experienced foreclosure attorney in the Chicago, IL area immediately if you hope to save your home. Suburban Legal Group PC can guide you through your options when facing foreclosure.
2. Full Payment. If you are able to pay the amount owed in arrears, plus all fees and penalties incurred, the foreclosure process will be stopped.
3. Lender Approved Mortgage Modification. Your lender may be willing to work with you to extend your repayment term or modify your interest rate to lower your monthly payment to a manageable amount. They may be motivated to offer better terms because of the expectation that you might be able to afford a lower payment, and that a performing loan (i.e. one in which payments are current) will be more valuable ultimately than the proceeds obtained from a foreclosure sale.
4. Federal Programs. In response to the housing crisis brought on by the financial collapse of 2008, the Federal Government implemented a number of programs to assist homeowners who are at risk of foreclosure and otherwise struggling with their monthly mortgage payments. The majority of these programs are administered through the U.S. Treasury Department and HUD. Options include modifying or refinancing your loan for lower payments, dealing with “underwater” mortgages, assistance for unemployed homeowners, managed exit for borrowers, FHA-insured mortgages, and more.
5. File for Chapter 7 or Chapter 13 Bankruptcy. Filing bankruptcy stops foreclosure proceedings through the “automatic stay”. The automatic stay is triggered as soon as you file Chapter 7 or Chapter 13 bankruptcy. No action besides filing a bankruptcy petition is required for the automatic stay to go into effect. Once you file bankruptcy, the automatic stay bars any attempts to begin, continue, or complete a foreclosure, either in or out of state court. However, there are exceptions and clauses that may apply, depending on your situation. Getting more information from a bankruptcy attorney is key.
6. Forbearance. The bank may agree to accept a lower monthly payment or no monthly payment for a limited time. At the end of the forbearance agreement, you must bring the account current. However, you may have to make larger payments later on. Make sure you understand the terms and can afford a forbearance agreement before you agree to it. Hiring a foreclosure attorney who can deal with the bank may make this process less daunting.