Foreclosure Rates Continue Uptick

Are you currently struggling to make your mortgage payments? If so, you should know that you are part of a growing group of Americans who are currently, or who could soon be, at risk of foreclosure. Indeed, according to a recent report from ATTOM Data, foreclosure rates are continuing to rise across the country. What should you know about this data, and what can you do if you are facing foreclosure? Our Oak Park consumer protection attorneys are here to discuss the data with you and to provide you with more information about foreclosure defense options.

New Data on Residential Foreclosures

How are foreclosure rates looking at the start of 2023? According to the data analysis from ATTOM, foreclosure filings are rising. Indeed, in January 2023, “there were a total of 31,557 U.S. properties with foreclosure filings — default notices, scheduled auctions, or bank repossessions — up 36% from a year ago and up 2% from the prior month.” The CEO of ATTOM suggested that the “uptick in overall foreclosure filings nationwide” does appear to be a trend that is likely to continue into 2023.

The Chicago area currently has one of the highest rates of completed foreclosure rates from January 2023, with 206 in total. That number places Chicago alongside four other areas with the highest rates of foreclosure completions based on the population, which include Detroit, New York, Philadelphia, and Riverside, California. Chicago had the second-highest uptick after Detroit.

Can I Take Any Steps to Avoid Foreclosure?

Even when it seems like the start of the foreclosure process is imminent or your lender has already initiated the foreclosure process, it is critical to know that there are still many ways in which you may be able to avoid foreclosure. Depending upon your circumstances, you could be eligible to avoid foreclosure while remaining in your home, or avoiding foreclosure could mean that you will need to give up your house or condo. What are the options for avoiding foreclosure?

First, you should contact a foreclosure defense lawyer who can discuss options with you. If you are eligible for Chapter 13 bankruptcy, you could file for bankruptcy and create a debt reorganization plan that allows you to catch up on mortgage payments and get back on track with the terms of your mortgage. In this scenario, you can avoid foreclosure and stay in your home. When Chapter 13 bankruptcy is not an option, or when you want to avoid bankruptcy, you still have options to avoid foreclosure, but these options will also involve leaving your property. The good news is that avoiding foreclosure with one of these options will allow you to be eligible to buy a home again sooner than you would be able to following a foreclosure:

• Short sale; or
• Deed in lieu of foreclosure.

Contact an Oak Park Foreclosure Defense Attorney Today

At the Emerson Law Firm, we can evaluate your situation and discuss all of your potential options with you for avoiding foreclosure. We are experienced Oak Park foreclosure defense lawyers, and we are here to help you. Contact the Emerson Law Firm to discuss your concerns about foreclosure and to learn more about your options.



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Wells Fargo Fined for Wrongful Foreclosures

Foreclosure Rates are Rising in Chicago

Wells Fargo Fined for Wrongful Foreclosures

Are you currently facing foreclosure, or was your home foreclosed on as a result of actions taken by Wells Fargo? If so, it is critical to learn more about recent actions taken by the Consumer Financial Protection Bureau (CFPB) against the bank for unlawful acts, including wrongful foreclosures. Last month, the CFPB announced in a news release that it was ordering Wells Fargo “to pay more than $2 billion to redress consumers and a $1.7 billion civil penalty for legal violations across several of its largest product lines.” Indeed, according to the news release, “the bank’s illegal conduct led to billions of dollars in financial harm to its customers and, for thousands of customers, the loss of their vehicles and homes.” Our Oak Park foreclosure defense lawyers want to provide you with more information about the recent action taken against Wells Fargo and the specific issue of wrongful foreclosures.

Wrongful Fees and Misapplication of Payments

How did Wells Fargo’s actions result in wrongful foreclosures? As the news release from the CFPB explains, “consumers were illegally assessed fees and interest charges on auto and mortgage loans, had their cars wrongly repossessed, and had payments to auto and mortgage loans misapplied by the bank.” In other words, foreclosures resulted from homeowners being improperly charged fees and interest that they could not pay and from homeowners’ mortgage payments being improperly applied to their mortgage debt.

In addition to misapplying payments and charging unlawful interest or fees, Wells Fargo was also cited for improperly denying mortgage modifications to homeowners, which could have prevented foreclosures in some cases. The CFPB’s news announcement specifically notes that the bank’s improper denial of modifications—a number in the thousands—led, in some cases, “to Wells Fargo customers losing their homes to wrongful foreclosures.”

CFPB Enforcement Action

According to CFPB Director Rohit Chopra, “Wells Fargo’s rinse-repeat cycle of violating the law has harmed millions of families . . . . The CFPB is ordering Wells Fargo to refund billions of dollars to consumers across the country. This is an important initial step for accountability and long-term reform of this repeat offender.”

In order to remedy the variety of improper and unlawful actions taken by Wells Fargo, the CFPB has taken a series of enforcement actions. Not only will the bank be required to pay more than $2 billion, but it will also need to pay penalties and change the process for assessing certain types of fees.

Contact an Oak Park Foreclosure Defense Lawyer Today

If you are facing foreclosure, you should get in touch with an experienced Oak Park foreclosure defense attorney who can discuss your options with you. Depending upon your circumstances, you could be eligible to consider a short sale, a deed in lieu of foreclosure, and other options. If you faced an unlawful foreclosure, or if you believe you are currently facing an unlawful foreclosure like those discussed above, our firm is also able to assess your case and provide you with more information about your options. Do not hesitate to get in touch with our firm to find out more about how we can help. Contact the Emerson Law Firm today.



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Foreclosure Rates are Rising in Chicago

Ways to Stop a Foreclosure Before the Holidays

Foreclosure Rates are Rising in Chicago

Are you concerned that you will soon be facing foreclosure in the Oak Park area? Or has your lender initiated foreclosure proceedings? You may not be alone. According to a recent report from MarketWatch, foreclosure activity has risen significantly from one year ago in November 2021. Indeed, according to that report, foreclosure activity increased by about 57% between November 2021 and November 2022. Some regions have seen a sharper rise in foreclosure rates than others, including the Chicago area. Our Oak Park foreclosure defense attorneys want to tell you more about the recent data concerning foreclosure activity in the U.S. and to provide you with more information about potential options for avoiding foreclosure. If you have any questions or if you need help with foreclosure defense, you should get in touch with an attorney at the Emerson Law Firm.

Significant Increase in Foreclosure Activity

In November 2022, foreclosure processes began on nearly 21,000 properties across the United States, according to the MarketWatch report. The report cites data from the analytics firm Attom, which found that foreclosure proceedings had risen by about 57 percent from November 2021 to 2022 and that these recent numbers suggest that the country “may be at or near peak level of foreclosure activity for 2022.”

Attom cited the “artificially low levels” of foreclosure last year, suggesting that the current numbers are the norm. The firm also indicated that foreclosure rates are significantly higher in particular areas of the country, and cited Chicago as one of the urban areas with the “greatest number of foreclosure starts.” More broadly, Illinois was also cited as one of the states with the highest number of new foreclosures.

How to Prevent Foreclosure

There are multiple ways that you may be able to prevent foreclosure if you are behind on your mortgage payments, or even if your lender has already initiated foreclosure proceedings. You should talk with a foreclosure defense lawyer in Oak Park about one or more of the following:

• Filing for Chapter 13 bankruptcy, which can stop the foreclosure process from moving forward and can allow you to catch up on mortgage payments in order to keep your home;
• Doing a short sale, which involves selling your house at a price below what you owe, finding a buyer for your property, and getting the lender to agree to the sale; or
• Deed in lieu of foreclosure, in which you sign over your home to the lender to avoid foreclosure, and you work with a lawyer to have the lender agree to avoid further action to recover the debt you owe on the property.

Contact an Experienced Oak Park Foreclosure Defense Attorney

If you are facing foreclosure or are worried that you will soon be facing foreclosure because you are behind on mortgage payments, it is important to seek advice from a foreclosure defense attorney in Oak Park who can assist you. You may have multiple options to stop a foreclosure. Contact the Emerson Law Firm today to learn more about how our firm can help.




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Ways to Stop a Foreclosure Before the Holidays

Zombie Foreclosures Are Returning to the Chicago Area

Ways to Stop a Foreclosure Before the Holidays

Facing foreclosure is extremely difficult at any time of the year, especially when the homeowner does not have any options for finding a new place to live and has a family to support. At the Emerson Law Firm, we know how devastating it can be to learn that you are at risk of foreclosure, and we also know how important it is to take steps in order to prevent the completion of a foreclosure. Even if you cannot remain in your home, you may be able to sell your property quickly without taking the impact on your credit that a foreclosure would have. In addition, you may be able to work out an agreement with the lender so that you will not still owe a significant amount of money on your mortgage and will not face legal action from the lender.

Whether you are currently facing foreclosure and it appears imminent, or you are behind on your mortgage payments and have concerns about your options for the near future, our experienced Oak Park foreclosure defense attorneys can discuss potential options with you.

File for Chapter 13 Bankruptcy

Filing for Chapter 13 bankruptcy, if you are eligible, can stop the foreclosure process before the holidays and give you an opportunity to catch up on your mortgage debt. A Chapter 13 bankruptcy is often the best way to avoid foreclosure and to remain in your home.

Consider a Short Sale

If Chapter 13 bankruptcy is not a possibility for you, you should speak with an attorney about a short sale. With a short sale, you must get the lender to agree, and you will need to find a buyer for the property. How does this work? A short sale involves selling your property for less than what you owe on the mortgage but for an amount agreed upon by the bank. Then, with assistance from your lawyer, you can have the lender agree to forgive any remaining debt (i.e., the amount remaining when you subtract the purchase price of the house from the amount you owe on the mortgage). While a short sale will not help you stay in your home, it can allow you to avoid the credit consequences of a foreclosure, and you may be eligible to buy a home again soon.

Find Out About a Deed in Lieu of Foreclosure

While it is often less appealing than a short sale, if your lender will not agree to a short sale or if a short sale does not seem possible or likely for other reasons, you may be able to consider a deed in lieu of foreclosure. With a deed in lieu, as it is commonly described, you will sign over your home to the bank in return for the bank agreeing to stop any foreclosure proceedings. Depending upon your circumstances, you may be able to work with an experienced foreclosure defense lawyer to reach an agreement with the bank, where they will forgive the mortgage debt you owe so that you will not face a lawsuit in the future.

Contact an Oak Park Foreclosure Defense Lawyer Today

If you are struggling to make mortgage payments and want to learn about options to defend against foreclosure or to stop foreclosure before the holidays, our experienced Oak Park foreclosure defense lawyers can help. We have years of experience representing homeowners in foreclosure defense cases, and an advocate at our firm can speak with you today about your circumstances. Contact the Emerson Law Firm for more information about how we can assist you.



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Zombie Foreclosures are Returning to the Chicago Area

What are the Steps in a Short Sale?

Zombie Foreclosures are Returning to the Chicago Area

You may have heard about zombie foreclosures in the Chicago area in the past. According to a recent report from ABC 7 News, rates of zombie properties and foreclosures have increased in Chicago, while a report from National Mortgage Professional emphasizes that the number of nationwide zombie foreclosures has been “ticking upward again.” What should you know about zombie foreclosures and, ultimately, about avoiding foreclosure if you can? Consider some of the following information from our Oak Park foreclosure defense lawyers.

What You Should Know About Zombie Properties and Foreclosures

What is a zombie foreclosure? You might remember the term from a decade ago when the housing bubble burst and home foreclosures were common in Chicago. In short, a zombie foreclosure is a term that refers to a property where the homeowner knows the bank has initiated the foreclosure process, and they assume that foreclosure is inevitable, so they move out and abandon the property. In Chicagoland, many of those homeowners incur significant fines — sometimes tens of thousands of dollars that they would not have owed otherwise.

According to the report from National Mortgage Professional, zombie foreclosures are up by nearly 4 percent from this same time last year, and the overall rate has been growing incrementally over the previous quarters. Still, residential foreclosure rates are low, but the steady increase in zombie foreclosures could be a sign of bigger issues in the future.

You May Still Be Able to Avoid Foreclosure

Before you assume that a foreclosure is certainly going to take place, you may still be able to take steps to avoid foreclosure and protect your credit. To be clear, you should get in touch with an Oak Park foreclosure defense attorney before moving out of your house and assuming the foreclosure process is a foregone conclusion.

Depending on your circumstances, you could have a few options available. First, if you are eligible for Chapter 13 bankruptcy, it is possible that you could still have a path to keep your home. By filing for Chapter 13 bankruptcy, you will immediately have the protection of the automatic stay. The automatic stay will halt the foreclosure process at any stage, whether the bank has only just initiated the foreclosure process or your home is nearing a foreclosure sale. Then, through the debt reorganization process that is part of a Chapter 13 bankruptcy case, you can catch up on mortgage payments and become current again with your lender.

Even if you cannot stay in your home, you may have options for avoiding foreclosure, even at a later stage of the foreclosure process. If your home could be sold to a buyer, you may be able to convince your lender to agree to a short sale, and your foreclosure defense attorney can help with this process. Through a short sale, you can sell your home to a buyer for less than what you owe, and you can have the bank agree to forgive the remaining debt. Or, if a short sale is not possible, the bank might agree to a deed in lieu of foreclosure. With a deed in lieu, you will reach an agreement with your lender that you cannot make payments, and you will voluntarily turn over your home to the bank. With a deed in lieu, it will be important to work with a lawyer to determine how you can avoid a deficiency judgment.

Contact an Oak Park Foreclosure Defense Attorney Today

If you are facing foreclosure, you should seek help from one of our Oak Park foreclosure defense attorneys as soon as possible. Do not hesitate to get in touch to learn more about defending against foreclosure and protecting your credit from the effects of foreclosure. You may have more options than you think. Contact the Emerson Law Firm today for more information.


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What are the Steps in a Short Sale?
Foreclosure Filings Increase by More Than 15%

What are the Steps in a Short Sale?

If you are behind on your mortgage payments and you want to avoid foreclosure, one of the options you are likely considering is a short sale. For many homeowners, a short sale is one of the best ways to prevent foreclosure while avoiding added costs associated with a deficiency judgment. While it is not always possible to have the remaining debt forgiven by the lender, short sales allow many homeowners to avoid taking the serious credit hit associated with a foreclosure, which often means that they can be eligible to buy a home again on a much shorter timeline. When you are considering a short sale, you might know a little bit about the process but may be unclear about specific steps. While it will be important to work with an Oak Park foreclosure defense attorney on the specific facts of your case, the following are the general steps in a short sale.

1. Determine if You Have Other Options for Catching Up on Your Mortgage

Since a short sale will mean that you sell your house and move to another location, you will want to consider whether you have other options that might allow you to catch up on your mortgage. For debtors who are significantly behind on mortgage payments, another option may be to file for Chapter 13 bankruptcy if you are eligible.

2. Make a Plan for Approaching Your Lender

You will need to receive approval from your lender to make a short sale since a short sale will involve selling the property for less money than you owe on it. Convincing your lender to agree to the short sale is often necessary. It will be important to show the lender that the short sale is necessary and to show, if possible, that unexpected circumstances resulted in your inability to make your mortgage payments. You will want to gather financial materials that provide evidence of your financial situation and the need for the short sale.

3. Ask the Lender for Approval

Next, you will need to request approval from the lender for a short sale. As an article in Quicken Loans explains, you will need to make this request through the proper channels. For most short sales, you will need to speak with someone in the loss mitigation department. At this stage, it is beneficial to have an experienced lawyer on your side who can deal with the lender on your behalf and can seek approval for the short sale.

4. Create a Short Sale Proposal and Set the Price

If the lender approves the short sale, you will need to create a short sale proposal and set the price. Ideally, you will sell the house for a price that is close to what you owe on the mortgage (or as close as possible to what you owe on the mortgage). The bank may be more willing to forgive a smaller amount of money rather than seeking a deficiency judgment.

5. Find a Buyer for Your Home

You will have to find a buyer with your short sale proposal. When you receive an offer from a buyer, you will need to obtain a purchase agreement to submit to your lender with your proposal.

6. Submit Your Proposal to Your Lender

Finally, you will submit your proposal, the purchase agreement, and all supporting financial materials to your lender. Your lender will need to approve the short sale and accept the offer from the buyer.

Contact an Oak Park Foreclosure Defense Attorney

If you have short sale questions, our Oak Park foreclosure defense attorneys can help. Contact the Emerson Law Firm today for assistance.




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Foreclosure Filings Increase by More Than 15%

Top Five Advantages of a Short Sale

Foreclosure Filings Increase by More Than 15%

During the COVID-19 pandemic, many commentators expected the rate of home foreclosures to increase across the country. However, moratoriums and economic aid largely prevented a significant rise in foreclosure rates, and many homeowners were able to remain in their homes despite facing job losses and furloughs. Yet according to a recent article in MarketWatch, that increase in home foreclosures appears to have begun. Indeed, the article reports that foreclosure filings have increased by more than 150% from July 2021, and since the start of 2022, foreclosure filings have risen by about 219%.

What are the likely implications of the rise in foreclosures, and what options might you have to avoid foreclosure?

Details of the Recent Foreclosure Surge

According to the article, about 96% of the largest metro areas in the U.S. have seen a rise in foreclosure filings and starts, and Illinois is near the very top of the list. When it comes to the overall rise in foreclosure rates, Illinois has the highest increase, and the state has the fourth-highest rise in foreclosure starts.

What does the increase mean for struggling homeowners? As the article points out, the rise brings the overall number of foreclosures back to a figure that is closer to pre-pandemic levels, suggesting that foreclosures were markedly low over the last two years. At the same time, the dramatic increase in foreclosure rates suggests that many homeowners are struggling to pay their mortgages and that it is important for those struggling homeowners to learn about options to prevent foreclosure.

Options to Consider to Avoid Foreclosure

If you are facing foreclosure and you want to take steps to stop the foreclosure process, you should get in touch with an experienced Oak Park foreclosure defense attorney who can discuss options with you.

In general, if you want to be able to keep your home and you qualify for Chapter 13 bankruptcy, our firm can tell you more about how a reorganization bankruptcy can halt foreclosure and can allow the debtor to keep their home. For this option to be available, you will need to be able to show that you are a wage earner capable of making regular installment payments as part of a repayment plan. There is a debt limit in Chapter 13 bankruptcy cases, but even if your debts exceed the limits (unsecured debt of $465,275 and secured debt of $1,395,875 until May 2025), you could be eligible for Chapter 11 bankruptcy instead.

For debtors who want to avoid the credit hit associated with a foreclosure, there are a couple of options you can consider. First, you might be able to get the bank to agree to a short sale. With a short sale, you can sell the house for an amount less than what you owe, and the bank may forgive any remaining debt. Or, you might consider a deed in lieu of foreclosure, which involves signing over your house to the bank in exchange for the bank agreeing to stop the foreclosure process. A lawyer can explain the differences between a short sale and a deed in lieu, as well as the benefits and limitations of each of these options.

Contact an Experienced Oak Park Foreclosure Defense Lawyer

If you have questions about avoiding foreclosure or need help with your case, one of our experienced Oak Park foreclosure defense attorneys can speak with you today about your options. Contact the Emerson Law Firm for more information about how we can help.


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Does Bankruptcy Always Stop Foreclosure?