Are you an Illinois homeowner concerned about foreclosure? If so, you should know that you’re not the only one. Home foreclosures in Illinois are on the rise, and if you’re at risk, you might not know what to do.
This blog post provides an overview of Illinois’s foreclosure process and outlines your options if you are facing foreclosure. Additionally, we will suggest ways to avoid foreclosure if possible.
Keep reading to learn how to protect your credit if you are faced with foreclosure for the first time or are just curious about how the process works.
What is a Foreclosure, and How Does it Work in Illinois?
Foreclosure is a legal procedure that lenders use to recoup unpaid loan balances from defaulting borrowers. Borrowers in Illinois who are past due for over 120 days can be foreclosed on.
How to Avoid Foreclosure
If you’re struggling to make your mortgage payments, you may think foreclosure is inevitable. However, there are ways to avoid foreclosure, so you should explore all your options before taking action.
Below are some of the ways you can avoid foreclosure in Illinois.
- Refinance Your Mortgage: You may be able to refinance your mortgage if interest rates have decreased since you took out your loan. A refinance can reduce your monthly payments and make them more affordable.
- Modify Your Mortgage: It may be possible to modify your mortgage terms if you have difficulty making payments. Loan terms may be extended, or interest rates may be changed.
- Sell Your Home: Selling your home might solve your mortgage payment problems. The proceeds from the sale can be used to pay off your loan and avoid foreclosure.
How to Stop or Delay Foreclosure
If you’re facing foreclosure, you can do a few things to slow down or stop the process.
- Reinstating the Loan: Illinois law permits borrowers to reinstate a loan within 90 days after being served with a summons or by publication. However, most loan servicers allow the borrower to reinstate at any time before the sale.
- Redeeming the Property: The “redemption period” is the period of time during which a borrower in foreclosure can reclaim the property by paying off the total debt, including the principal balance, plus certain additional costs and interest. A sale can’t take place in Illinois until the redemption period ends.
- Filing for Bankruptcy: Although bankruptcy is not ideal, it can help you avoid foreclosure. Upon filing bankruptcy, the lender is prohibited from foreclosing or collecting the debt due to an automatic stay. Consult a bankruptcy attorney to learn about your options.
What to Do if Foreclosure is Inevitable
The last thing anyone wants is to be faced with foreclosure, but it’s imperative to know what to do in this situation. It is important to learn how foreclosure works, be familiar with state foreclosure laws, and understand your options to make informed decisions.
The Process of Foreclosure in Illinois
During judicial foreclosure, the lender files a lawsuit seeking an order allowing the sale of the property after the mortgage has been past due for over 120 days. As part of the foreclosure process, the lender serves you with a summons, complaint, and notice advising you of your rights. Answers to lawsuits are usually due within 30 days.
In the event that you do not respond to the suit, the lender will probably be granted a default judgment, allowing them to hold a foreclosure sale. However, if you choose to defend the foreclosure lawsuit, the case will proceed through the court system.
The lender might then seek summary judgment from the court. During a summary judgment motion, the lender asks the court to grant judgment in their favor since there are no disputes about the key aspects of the case. Your home will be auctioned if the court grants summary judgment to the lender or if you lose at trial.
The Aftermath of Foreclosure
When a property is foreclosed, it can have severe consequences for the homeowner and the community. Foreclosed homeowners may have difficulty obtaining new housing because of the damage to their credit score. Additionally, it can be challenging to get a mortgage or rent an apartment. Foreclosures can also cause homelessness due to the lack of affordable housing.
Additionally, foreclosure can negatively impact a community. In addition to reducing property values, abandoned and empty homes can pose safety hazards. Crime can also increase when criminals target vacant homes.
When you face foreclosure, knowing your rights and options is crucial, as choosing wisely can lead to a better future.
Resources for Homeowners Facing Foreclosure in Illinois
If you are facing foreclosure in Illinois, several resources are available to help you. The U.S. Department of Housing and Urban Development provides foreclosure prevention, counseling, and assistance to homeowners in need.
You may also be able to keep your home or find new housing through a private foreclosure assistance program. These programs often charge a fee, so do your research before choosing one.
Favor Home Solutions Can Help You Avoid Foreclosure
There is no doubt that the foreclosure process can be stressful and challenging. The process can seriously damage your credit and even cause you to lose your home. If you are feeling overwhelmed by the prospect of foreclosure, you may want to consider selling your home to a home-buying company like Favor Home Solutions.
With our cash offers, you will receive your funds as soon as possible, regardless of the condition of your house. Find out how we can assist you during this difficult time by contacting us today!
