Chicago Foreclosure Defense
Foreclosures are Common in Illinois
If you own a home in Chicago or the surrounding areas and are currently
facing the threat of foreclosure, the first thing to know is that you
are not alone. According to RealtyTrac, Illinois has one of the highest
rates of foreclosure in the nation. In fact, only Florida, Nevada and
California have higher foreclosure rates than our state, where nearly
11,500 properties -
1 in every 461 houses - are being foreclosed. In comparison, the nationwide rate is 1 in 810. Within Illinois, the
highest concentration of foreclosures by far is in Cook County, followed
by Lake County, Will County and Du Page County.
The fact that foreclosure is common in Chicago does not mean that it has
to happen to you. Follow the links below to learn more about strategies
that a Cook County foreclosure defense attorney from Whiteman Borden,
LLC may be able to use to help you keep your home or to make a clean break
while also avoiding negative consequences for your financial health.
Helping You Avoid a Foreclosure in Chicago
Second Mortgage Foreclosure
If the bank that holds the original mortgage to your home forecloses on
the property, the lender for any second mortgage such as a home equity
loan may not end up recovering any proceeds from the sale of the property,
since the primary mortgage holder has priority in the action. Second mortgages
are generally considered recourse loans, meaning that the lender may have
grounds to sue you to recover the amount you still owe them.
When your property is "upside-down" or "underwater,"
meaning that you owe more on the loan than you would be able to get by
selling the house to another buyer, the best option for avoiding foreclosure
is often to negotiate a short sale. The goal is to get the bank to agree
to allow you to sell the property for less than you owe and to forgive
the balance of the loan.
Deed in Lieu
One of the fastest and simplest ways of avoiding a foreclosure is to contact
the bank and to get their agreement to accept your offer to surrender
the deed to the property in exchange for forgiving the balance of the
loan. This is referred to as a
deed in lieu of foreclosure, because it allows to essentially walk away from the mortgage with minimal
consequences to your credit.
Short Sale Negotiation
Generally, a short sale is in the best interests of everyone involved:
the bank gets to avoid the substantial costs of a foreclosure and you
get to walk away from a home that you can no longer afford. This does
not mean, however, that you should expect the bank to willingly agree
to your request. Banks often put up considerable resistance to a short
sale - otherwise everyone would seek this option as soon as they could
- and it is best to have someone skilled on your side to negotiate the deal.
Waiver of Deficiency
One of the most crucial steps in negotiating a short sale is to obtain
a waiver of deficiency from the bank. This document is essentially the
bank's agreement that they will not hold you responsible for paying
the difference between the amount you owe on the home and the sale price.
Otherwise, you could be held as being delinquent for the remaining loan
balance, leading to further credit damage and a court order to pay the
In some cases the best response for an impending foreclosure is to simply
stop paying your mortgage. Many people will scrape and scramble up until
the very last moment to continue to meet their obligation to pay, subjecting
themselves and their families to severe stress and economic hardship only
to put off the inevitable for another month. However, and unfortunately,
sometimes a strategic default is necessary for a short sale or to implement
other strategies. In many circumstances, despite your efforts to stay
current, the bank will not discuss options with you until you have defaulted.
Having to give up your home in a short sale is bad enough, but to make
matters worse you could still end up owing the bank money. A large percentage
of home foreclosures involve properties that are underwater, with the
result that the proceeds from the foreclosure sale will not be enough
to satisfy the outstanding loan balance. When this happens, the lender
may pursue the borrower to recover the remainder of the amount owed.
Do I need a Chicago foreclosure defense attorney?
You are not legally required to hire a lawyer to represent you in any aspect
of the foreclosure or short sale process. You are entitled to represent
yourself in any and all negotiations with the bank, as well as speaking
on your own behalf in court when necessary. The question is, however,
"Why would you want to?" Real estate and financial transactions
are already complicated enough, without adding in the complexities of
state and federal law.
Even minor mistakes or omissions in handling the case could end up costing
you greatly. You could fail to prove your case against the foreclosure
– or fail to make the bank prove its case –the bank might
deny your request to approve a short sale, or even if you are allowed
to sell for less than the loan balance, you could be sued for the deficiency.
There is simply too much at stake to take any chances with the outcome.
We strive to make our services affordable to our clients, and in everything
we do we always work to achieve the best possible results.
Contact us now for a free consultation to learn more about your options and to get
started on your case.
Foreclosure Defense Resources: