The idea of deciding or choosing between a short sale and Chapter 13 bankruptcy might seem odd at first since you might not realize that both options are potential methods for avoiding foreclosure. Yet once you begin to learn more about foreclosure defense options, and ways of preventing foreclosure, you will learn that there may be multiple options available to you, and two of those options might include a short sale or a Chapter 13 bankruptcy filing. Both options are quite different from one another, aside from the fact that they can both allow a homeowner who is struggling with mortgage payments to avoid having a foreclosure on their record.
Our Oak Park foreclosure defense attorneys can explain more about short sales and Chapter 13 bankruptcy filings under the Bankruptcy Code, and we can clarify how these legal tools can allow you to prevent your home from going into foreclosure.
Short Sales Stop a Foreclosure, End Your Mortgage Debt, But Require You to Leave Your Home
When a homeowner is facing foreclosure, a short sale is a popular tool to stop foreclosure and erase mortgage debt, but it requires the homeowner to vacate the property. In other words, you cannot do a short sale and stay in your home.
What is a short sale? With a short sale, the homeowner finds a buyer who is willing to purchase the home for a price of less than what the homeowner currently owes on the mortgage. Then, the homeowner must get permission from the lender to move forward with the sale, and the lender must agree to take an amount that is less than what is currently owed on the mortgage. Typically, with a short sale, your lawyer will also work out a deal with the lender for the lender to forgive any remaining debt (i.e., the difference between the amount owed on the mortgage and the amount for which the property is being sold). A short sale does not damage a consumer’s credit nearly as much as a foreclosure while giving the debtor a way of preventing foreclosure.
Chapter 13 Bankruptcy Can Stop Foreclosure While Keeping You in Your Home
When should you choose Chapter 13 bankruptcy instead of a short sale? This is often a good option for homeowners who are eligible for this type of bankruptcy and who want to reorganize their debts. With a Chapter 13 bankruptcy, you can stop a foreclosure but also remain in your home and get caught up on your mortgage payments.
While a Chapter 13 bankruptcy might immediately seem like the most appealing option to remain in your home and avoid foreclosure, it is important to consider the effects of a reorganization bankruptcy case. You will need to abide by the terms of a repayment plan in this type of bankruptcy (which will last anywhere from three to five years), and you will need to take into account most non-exempt debt when making payments on this plan for an extended period.
Discuss Your Circumstances with an Oak Park Foreclosure Defense Attorney
If you are facing foreclosure, an experienced Oak Park foreclosure defense lawyer at our firm can discuss the pros and cons with you of a short sale or a Chapter 13 bankruptcy filing. Contact the Emerson Law Firm to learn more.
See Related Blog Posts:
Top Things to Know About a Short Sale to Avoid Foreclosure
Am I Eligible for an Option to Avoid Foreclosure?
Showing posts with label Chicago foreclosure defense. Show all posts
Showing posts with label Chicago foreclosure defense. Show all posts
Friday, June 23, 2023
Tuesday, May 16, 2023
Top Things to Know About a Short Sale to Avoid Foreclosure
Realizing that your home is at risk of foreclosure can be incredibly stressful, and our Oak Park foreclosure defense attorneys know how difficult it can be to understand your options under these circumstances. One common way to avoid foreclosure is the short sale, and our firm routinely represents clients in short sales in the Chicago area. What do you need to learn about short sales and how they work? The following are some of the top things to know about a short sale to avoid foreclosure.
Short Sales Stop Foreclosure
The first and most important thing to know about a short sale is that it is an option for avoiding foreclosure. What is a short sale? As Rocket Mortgage explains, the term “short sale” refers to selling your house for less than the amount that you currently owe on the mortgage in order to prevent the home from going into foreclosure. A short sale does not allow a homeowner to remain in the property since they will be selling it, but it does offer an option for avoiding the damage to your credit that would come with a completed foreclosure. Short sales do still impact your credit, but not to the extent of foreclosures.
Short Sales Require Agreement From the Bank or Lender
A short sale requires the homeowner to get permission from the bank or lender in order to move forward. Since you will be selling your home for less than what you owe on the mortgage, the lender has to agree to the amount that the home will be sold for and must agree to the overall sale. Short sales are often beneficial to lenders when a homeowner has an underwater mortgage and cannot continue making payments because the lender may be able to get more money for the home than they would with a foreclosure. A foreclosure defense lawyer in Oak Park can work with your lender to secure approval for the short sale.
Short Sales Do Not Leave You at Risk of a Lawsuit for the Remaining Amount Owed
With a short sale agreement, your attorney will also typically have the lender agree to forgive any remaining debt you owe on the mortgage as a result of the short sale. As such, you will not have to worry about being sued for the remaining amount owed. You may, however, owe taxes on the amount forgiven.
Contact an Oak Park Foreclosure Defense Attorney
Are you currently at risk of foreclosure and wondering about your options? You may have multiple options available to you, but a short sale is frequently a good option for homeowners who want to avoid foreclosure but know they do not have options for remaining in their homes. Whether you want to learn more about a short sale and receive legal help with the process, or you want to find out about other options for avoiding foreclosure, you should get in touch with one of the experienced Oak Park foreclosure defense lawyers at our firm. We have years of experience representing consumers and homeowners in the Oak Park area, and we can speak with you today. Contact the Emerson Law Firm to find out more about how we can help you with foreclosure defense options.
See Related Blog Posts:
Am I Eligible for an Option to Avoid Foreclosure?
Delinquent Mortgages Decline While Foreclosures Rise
Short Sales Stop Foreclosure
The first and most important thing to know about a short sale is that it is an option for avoiding foreclosure. What is a short sale? As Rocket Mortgage explains, the term “short sale” refers to selling your house for less than the amount that you currently owe on the mortgage in order to prevent the home from going into foreclosure. A short sale does not allow a homeowner to remain in the property since they will be selling it, but it does offer an option for avoiding the damage to your credit that would come with a completed foreclosure. Short sales do still impact your credit, but not to the extent of foreclosures.
Short Sales Require Agreement From the Bank or Lender
A short sale requires the homeowner to get permission from the bank or lender in order to move forward. Since you will be selling your home for less than what you owe on the mortgage, the lender has to agree to the amount that the home will be sold for and must agree to the overall sale. Short sales are often beneficial to lenders when a homeowner has an underwater mortgage and cannot continue making payments because the lender may be able to get more money for the home than they would with a foreclosure. A foreclosure defense lawyer in Oak Park can work with your lender to secure approval for the short sale.
Short Sales Do Not Leave You at Risk of a Lawsuit for the Remaining Amount Owed
With a short sale agreement, your attorney will also typically have the lender agree to forgive any remaining debt you owe on the mortgage as a result of the short sale. As such, you will not have to worry about being sued for the remaining amount owed. You may, however, owe taxes on the amount forgiven.
Contact an Oak Park Foreclosure Defense Attorney
Are you currently at risk of foreclosure and wondering about your options? You may have multiple options available to you, but a short sale is frequently a good option for homeowners who want to avoid foreclosure but know they do not have options for remaining in their homes. Whether you want to learn more about a short sale and receive legal help with the process, or you want to find out about other options for avoiding foreclosure, you should get in touch with one of the experienced Oak Park foreclosure defense lawyers at our firm. We have years of experience representing consumers and homeowners in the Oak Park area, and we can speak with you today. Contact the Emerson Law Firm to find out more about how we can help you with foreclosure defense options.
See Related Blog Posts:
Am I Eligible for an Option to Avoid Foreclosure?
Delinquent Mortgages Decline While Foreclosures Rise
Tuesday, April 25, 2023
Am I Eligible for an Option to Avoid Foreclosure?
Foreclosures are on the rise again in Chicago. While the numbers are not as high as they were during the foreclosure crisis that began nearly 15 years ago, the rates of foreclosure are creeping up, and they are attracting particular attention in major urban areas, including Chicago. Indeed, according to a recent report in Bloomberg, foreclosure starts rose by 22 percent in the first quarter of 2023 compared with numbers from the first quarter of last year, and Chicago has the second-highest rate of new foreclosure starts in the country. In the first quarter alone, there were more than 3,500 foreclosure starts in the Chicago area, a number that makes Chicago second only to New York City in terms of foreclosure starts.
If you are at risk of foreclosure, or if you are already facing foreclosure, what are your options for avoiding it? And should you even be taking steps to avoid it, or should you merely allow the foreclosure to happen and then attempt to get your credit back on track later?
You Should Do Everything You Can to Prevent Foreclosure
Many people who are struggling with debt and are facing foreclosure make the decision to simply allow the foreclosure to happen, but it is almost always beneficial to take steps to avoid foreclosure, and an experienced foreclosure defense attorney can help you with your options.
Why should you try to avoid foreclosure if you can? Not only does foreclosure always result in the loss of your home, but it can also have a substantial impact on your credit — significantly more than some of the options that may be available to you to avoid foreclosure — and it can result in you facing a lawsuit for the bank to recover the money you owe and the loss of any equity in your property. In short, if you can avoid foreclosure, you should.
Ways to Avoid Foreclosure in Illinois
There are many potential ways to avoid foreclosure, and our Oak Park foreclosure defense attorneys routinely assist homeowners with a range of tools for preventing foreclosure in Illinois. The following are just some of the options that could be relevant to your situation:
Contact an Oak Park Foreclosure Defense Attorney
Are you struggling with your mortgage payments and at risk of foreclosure? Now is the time to get in touch with an experienced Oak Park foreclosure defense lawyer who can learn more about your specific circumstances and can discuss different types of foreclosure defense options with you. For many struggling homeowners, there are ways to avoid foreclosure, and our firm can help. Contact the Emerson Law Firm for more information and to speak with an attorney.
See Related Blog Posts:
Delinquent Mortgages Decline While Foreclosures Rise
Foreclosure Rates Continue Uptick
If you are at risk of foreclosure, or if you are already facing foreclosure, what are your options for avoiding it? And should you even be taking steps to avoid it, or should you merely allow the foreclosure to happen and then attempt to get your credit back on track later?
You Should Do Everything You Can to Prevent Foreclosure
Many people who are struggling with debt and are facing foreclosure make the decision to simply allow the foreclosure to happen, but it is almost always beneficial to take steps to avoid foreclosure, and an experienced foreclosure defense attorney can help you with your options.
Why should you try to avoid foreclosure if you can? Not only does foreclosure always result in the loss of your home, but it can also have a substantial impact on your credit — significantly more than some of the options that may be available to you to avoid foreclosure — and it can result in you facing a lawsuit for the bank to recover the money you owe and the loss of any equity in your property. In short, if you can avoid foreclosure, you should.
Ways to Avoid Foreclosure in Illinois
There are many potential ways to avoid foreclosure, and our Oak Park foreclosure defense attorneys routinely assist homeowners with a range of tools for preventing foreclosure in Illinois. The following are just some of the options that could be relevant to your situation:
- Showing that your mortgage servicer or lender violated the law or made an error, and you should not actually be in a situation where you are facing foreclosure;
- Doing a short sale, which requires getting permission from the lender to sell your home at a price below what you owe and asking the lender to forgive the remaining amount;
- Deed in lieu of foreclosure, which involves turning over the deed to your house or apartment to the bank to prevent the bank from foreclosing; or
- Filing for Chapter 13 bankruptcy, if you are eligible, which can actually allow you to catch up on mortgage payments and keep your home.
Contact an Oak Park Foreclosure Defense Attorney
Are you struggling with your mortgage payments and at risk of foreclosure? Now is the time to get in touch with an experienced Oak Park foreclosure defense lawyer who can learn more about your specific circumstances and can discuss different types of foreclosure defense options with you. For many struggling homeowners, there are ways to avoid foreclosure, and our firm can help. Contact the Emerson Law Firm for more information and to speak with an attorney.
See Related Blog Posts:
Delinquent Mortgages Decline While Foreclosures Rise
Foreclosure Rates Continue Uptick
Friday, March 24, 2023
Delinquent Mortgages Decline While Foreclosures Rise
Foreclosure rates tend to be higher in times of economic downturn, and many commentators anticipated that the number of foreclosures across the country would start to increase as moratoriums ended and the financial impact of the COVID-19 pandemic became a reality. Recent data has shown upticks in overall foreclosure rates throughout the United States, with particular spikes in certain urban areas, including in the Chicago area. According to a recent article in DSNews.com, new statistics show that the overall rate of mortgage delinquencies has declined, but the rate of foreclosures continues to climb. What should you know about recent data on foreclosures? And what should you do if you believe you are at risk of foreclosure? Consider the following information from our Oak Park foreclosure defense attorneys.
Drop in Mortgage Delinquencies Coincides with Increase in Foreclosures
In comparison with mortgage delinquency and foreclosure data from a year ago, the news is good in terms of overall mortgage delinquency rates. Indeed, according to the DSNews.com report, as of January 2023, approximately 2.8% of mortgages in the United States “were in some stage of delinquency,” meaning that they were at least 30 days past due, with some already in the foreclosure process. While that percentage might seem high, it actually represents a 5% decrease from the same time last year in January 2022, when about 3.3% of mortgages were in a stage of delinquency. However, the data does not look as good for foreclosures.
Between January 2022 and January 2023, overall rates of foreclosure have actually increased. In January 2022, approximately 0.2% of all homes were in foreclosure, and by January 2023, that number had risen to 0.3%. While the change might not seem significant since the number is small, the rise is notable given the decline in mortgage delinquencies over the same period.
Avoiding Foreclosure: What are My Options?
If you are behind on your mortgage payments and are at risk of foreclosure, what are your potential options for avoiding foreclosure? You may have a few different options, and you should discuss them with a foreclosure defense attorney in Oak Park. Some possible options include, for example:
Contact a Foreclosure Defense Lawyer in Oak Park
Anyone who is at risk of foreclosure or for whom foreclosure proceedings have already begun should get in touch with an experienced Oak Park foreclosure defense attorney who can help. Our firm can assist you with multiple options that may allow you to avoid foreclosure, from a reorganization bankruptcy that could allow you to stay in your home to a short sale or deed in lieu that could prevent your credit from being impacted fully by a foreclosure. Contact the Emerson Law Firm to learn more about potential options for avoiding foreclosure in Illinois.
See Related Blog Posts:
Foreclosure Rates Continue Uptick
Wells Fargo Fined for Wrongful Foreclosures
Drop in Mortgage Delinquencies Coincides with Increase in Foreclosures
In comparison with mortgage delinquency and foreclosure data from a year ago, the news is good in terms of overall mortgage delinquency rates. Indeed, according to the DSNews.com report, as of January 2023, approximately 2.8% of mortgages in the United States “were in some stage of delinquency,” meaning that they were at least 30 days past due, with some already in the foreclosure process. While that percentage might seem high, it actually represents a 5% decrease from the same time last year in January 2022, when about 3.3% of mortgages were in a stage of delinquency. However, the data does not look as good for foreclosures.
Between January 2022 and January 2023, overall rates of foreclosure have actually increased. In January 2022, approximately 0.2% of all homes were in foreclosure, and by January 2023, that number had risen to 0.3%. While the change might not seem significant since the number is small, the rise is notable given the decline in mortgage delinquencies over the same period.
Avoiding Foreclosure: What are My Options?
If you are behind on your mortgage payments and are at risk of foreclosure, what are your potential options for avoiding foreclosure? You may have a few different options, and you should discuss them with a foreclosure defense attorney in Oak Park. Some possible options include, for example:
- Filing for Chapter 13 bankruptcy, which can allow you to stop the foreclosure process from occurring or moving forward, and can allow you to get caught up on mortgage payments through debt reorganization;
- Short sale, which is a process through which the lender agrees for you to sell your house for less than you owe on the mortgage and to forgive remaining debt; or
- Deed in lieu of foreclosure, in which you would sign over your deed to the house to the lender in order to avoid foreclosure.
Contact a Foreclosure Defense Lawyer in Oak Park
Anyone who is at risk of foreclosure or for whom foreclosure proceedings have already begun should get in touch with an experienced Oak Park foreclosure defense attorney who can help. Our firm can assist you with multiple options that may allow you to avoid foreclosure, from a reorganization bankruptcy that could allow you to stay in your home to a short sale or deed in lieu that could prevent your credit from being impacted fully by a foreclosure. Contact the Emerson Law Firm to learn more about potential options for avoiding foreclosure in Illinois.
See Related Blog Posts:
Foreclosure Rates Continue Uptick
Wells Fargo Fined for Wrongful Foreclosures
Wednesday, January 25, 2023
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.
See Related Blog Posts:
Foreclosure Rates are Rising in Chicago
Ways to Stop a Foreclosure Before the Holidays
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.
See Related Blog Posts:
Foreclosure Rates are Rising in Chicago
Ways to Stop a Foreclosure Before the Holidays
Friday, December 16, 2022
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:
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.
Sources:
Ways to Stop a Foreclosure Before the Holidays
Zombie Foreclosures Are Returning to the Chicago Area
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.
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.
Sources:
Ways to Stop a Foreclosure Before the Holidays
Zombie Foreclosures Are Returning to the Chicago Area
Friday, November 25, 2022
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.
See Related Blog Posts:
Zombie Foreclosures are Returning to the Chicago Area
What are the Steps in a Short Sale?
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.
See Related Blog Posts:
Zombie Foreclosures are Returning to the Chicago Area
What are the Steps in a Short Sale?
Friday, September 23, 2022
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.
See Related Blog Posts:
Foreclosure Filings Increase by More Than 15%
Top Five Advantages of 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.
See Related Blog Posts:
Foreclosure Filings Increase by More Than 15%
Top Five Advantages of a Short Sale
Wednesday, August 24, 2022
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.
See Related Blog Posts:
Top Five Advantages of a Short Sale
Does Bankruptcy Always Stop Foreclosure?
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.
See Related Blog Posts:
Top Five Advantages of a Short Sale
Does Bankruptcy Always Stop Foreclosure?
Wednesday, July 13, 2022
Top Five Advantages of a Short Sale
Struggling to pay your mortgage and realizing that you could soon be facing foreclosure is an extremely difficult experience for any homeowner. Indeed, it can be devastating to recognize that you do not have options for staying in your home given the amount of debt you owe. There are a variety of options that could be available to you to avoid foreclosure, including a short sale. Our Oak Park foreclosure defense attorneys routinely help struggling homeowners with short sales in order to stop a foreclosure from happening, and we can provide you with more information about how a short sale might benefit you. In the meantime, the following are the top five advantages of a short sale.
1. Avoid Having a Foreclosure on Your Credit
One of the most obvious advantages of doing a short sale instead of foreclosure is that you will not have a foreclosure on your credit record or credit report. When a foreclosure happens, a consumer’s credit takes a significant hit, and it can be difficult to rebuild credit. While a short sale will still affect your credit, it will affect your credit significantly less.
2. You Will Have Greater Control Over the Process Than You Would in a Foreclosure
When you do a short sale, you will be able to have more control over the process and will be able to make plans to sell the home and to move into a new one.
3. You Can be Eligible for Another Mortgage Sooner
When a judicial foreclosure occurs, you may need to wait for up to eight years before you are eligible to get a mortgage. With a short sale, you can be eligible for a mortgage again on a much shorter timeline. Depending upon the type of loan you want to get, you may need to wait anywhere from two to four years before you are eligible again, according to Bankrate. That timeline is significantly shorter than if you lose your home to foreclosure.
4. You May Save Money
The costs associated with foreclosure can be high. According to Mortgage News Daily, the Joint Economic Committee of Congress estimates that the average cost of foreclosure to a homeowner is more than $7,000, while a short sale will incur minimal costs.
5. Less Stressful Than a Foreclosure
Given that you will have more control in a short sale than a foreclosure, and that you can begin rebuilding your credit in order to be eligible again relatively soon for a mortgage, a short sale is generally less stressful for the homeowner than a foreclosure.
Contact an Oak Park Foreclosure Defense Lawyer Today
If you are behind on mortgage payments and you are facing the possibility of foreclosure, you should get in touch with an Oak Park foreclosure defense attorney who can provide you with more information about your options. We can help you through the short sale process, which can be complicated, and we can also provide you with information about other foreclosure defense options, such as a deed in lieu of foreclosure. Contact the Emerson Law Firm to learn more about how we can assist you.
See Related Blog Posts:
Does Bankruptcy Always Stop Foreclosure?
How Can I Do a Short Sale?
1. Avoid Having a Foreclosure on Your Credit
One of the most obvious advantages of doing a short sale instead of foreclosure is that you will not have a foreclosure on your credit record or credit report. When a foreclosure happens, a consumer’s credit takes a significant hit, and it can be difficult to rebuild credit. While a short sale will still affect your credit, it will affect your credit significantly less.
2. You Will Have Greater Control Over the Process Than You Would in a Foreclosure
When you do a short sale, you will be able to have more control over the process and will be able to make plans to sell the home and to move into a new one.
3. You Can be Eligible for Another Mortgage Sooner
When a judicial foreclosure occurs, you may need to wait for up to eight years before you are eligible to get a mortgage. With a short sale, you can be eligible for a mortgage again on a much shorter timeline. Depending upon the type of loan you want to get, you may need to wait anywhere from two to four years before you are eligible again, according to Bankrate. That timeline is significantly shorter than if you lose your home to foreclosure.
4. You May Save Money
The costs associated with foreclosure can be high. According to Mortgage News Daily, the Joint Economic Committee of Congress estimates that the average cost of foreclosure to a homeowner is more than $7,000, while a short sale will incur minimal costs.
5. Less Stressful Than a Foreclosure
Given that you will have more control in a short sale than a foreclosure, and that you can begin rebuilding your credit in order to be eligible again relatively soon for a mortgage, a short sale is generally less stressful for the homeowner than a foreclosure.
Contact an Oak Park Foreclosure Defense Lawyer Today
If you are behind on mortgage payments and you are facing the possibility of foreclosure, you should get in touch with an Oak Park foreclosure defense attorney who can provide you with more information about your options. We can help you through the short sale process, which can be complicated, and we can also provide you with information about other foreclosure defense options, such as a deed in lieu of foreclosure. Contact the Emerson Law Firm to learn more about how we can assist you.
See Related Blog Posts:
Does Bankruptcy Always Stop Foreclosure?
How Can I Do a Short Sale?
Friday, May 27, 2022
How Can I Do a Short Sale?
If your home is currently at risk of going into foreclosure, or if you are unable to continue making your mortgage payments and want to take steps to avoid foreclosure, one of the options you might be considering is a short sale. It is important to understand that a short sale is different from a traditional home sale, and there are certain steps you will need to take if you want to do a short sale in Illinois. An experienced Oak Park foreclosure defense attorney at our firm can talk with you today about planning a short sale and moving forward with a short sale in order to prevent foreclosure. In the meantime, the following are the general steps you should be aware of when it comes to doing a short sale in the Chicago area.
Understand What is Involved in a Short Sale
Before you take any steps toward doing a short sale, it is essential to understand what is involved in the process. A short sale is generally for homeowners who have underwater loans and cannot make their mortgage payments. With a short sale, you will be entering into an agreement with your lender to sell your house for less than what you owe on the mortgage, and the lender will agree to accept the amount for which the house sells and, in most cases, forgive the remaining amount of mortgage debt. A short sale will impact your credit, and you will not be able to keep your home, but it will have less impact on your credit than if your house goes into foreclosure and is sold through a foreclosure sale.
Determine if You Need to Do a Short Sale
You should work with an attorney who can help you to determine whether a short sale is necessary. In most situations, it is possible to estimate the likely sale price of the house, and to account for the unpaid mortgage balance and any costs associated with the sale. If it looks as if you might still make any money from the sale or might come out even, a short sale is likely not necessary. If money will still be due after a sale of the house based on the estimated selling price, you may need to move forward with a short sale.
Contact Your Lender
Once you decide to move forward with a short sale, the first thing you will need to do is contact your lender. According to an article in The Balance, getting in touch with the right person can be difficult, and it often makes sense to seek help from a foreclosure defense lawyer immediately so that your lawyer can be in contact with the lender and negotiate the terms of the short sale.
Submit a Hardship Letter and Related Documentation
When you ask the lender to agree to a short sale and to forgive remaining debt, you will typically need to submit a hardship letter that explains your financial situation and why you are unable to continue making payments on your home loan. Along with a hardship letter, you will usually need to submit financial documentation to the lender, including information about any assets you have and copies of your bank statements.
Listing the House and Entering Into an Agreement
Finally, if the lender agrees to the possibility of a short sale, the house can be listed, you can submit a purchase agreement to the lender once you find a buyer, and the lender can approve the terms of the short sale.
Contact an Oak Park Foreclosure Defense Attorney Today
If you have questions about doing a short sale, one of our foreclosure defense attorneys in Oak Park can assist you. Contact the Emerson Law Firm to get started.
See Related Blog Posts:
What is a Judicial Foreclosure and How Can I Avoid One?
Foreclosure Rates Begin Rising in America Again
Understand What is Involved in a Short Sale
Before you take any steps toward doing a short sale, it is essential to understand what is involved in the process. A short sale is generally for homeowners who have underwater loans and cannot make their mortgage payments. With a short sale, you will be entering into an agreement with your lender to sell your house for less than what you owe on the mortgage, and the lender will agree to accept the amount for which the house sells and, in most cases, forgive the remaining amount of mortgage debt. A short sale will impact your credit, and you will not be able to keep your home, but it will have less impact on your credit than if your house goes into foreclosure and is sold through a foreclosure sale.
Determine if You Need to Do a Short Sale
You should work with an attorney who can help you to determine whether a short sale is necessary. In most situations, it is possible to estimate the likely sale price of the house, and to account for the unpaid mortgage balance and any costs associated with the sale. If it looks as if you might still make any money from the sale or might come out even, a short sale is likely not necessary. If money will still be due after a sale of the house based on the estimated selling price, you may need to move forward with a short sale.
Contact Your Lender
Once you decide to move forward with a short sale, the first thing you will need to do is contact your lender. According to an article in The Balance, getting in touch with the right person can be difficult, and it often makes sense to seek help from a foreclosure defense lawyer immediately so that your lawyer can be in contact with the lender and negotiate the terms of the short sale.
Submit a Hardship Letter and Related Documentation
When you ask the lender to agree to a short sale and to forgive remaining debt, you will typically need to submit a hardship letter that explains your financial situation and why you are unable to continue making payments on your home loan. Along with a hardship letter, you will usually need to submit financial documentation to the lender, including information about any assets you have and copies of your bank statements.
Listing the House and Entering Into an Agreement
Finally, if the lender agrees to the possibility of a short sale, the house can be listed, you can submit a purchase agreement to the lender once you find a buyer, and the lender can approve the terms of the short sale.
Contact an Oak Park Foreclosure Defense Attorney Today
If you have questions about doing a short sale, one of our foreclosure defense attorneys in Oak Park can assist you. Contact the Emerson Law Firm to get started.
See Related Blog Posts:
What is a Judicial Foreclosure and How Can I Avoid One?
Foreclosure Rates Begin Rising in America Again
Friday, March 25, 2022
Foreclosure Rates Begin Rising in America Again
During much of the COVID-19 pandemic, homeowners did not have to worry about losing their homes to foreclosure as a result of forbearances from federal mortgage services and banks across the country. Many economists and consumer protection advocates predicted, and worried, that the end of foreclosure forbearance periods would result in a marked increase in foreclosure activity across the country. Prior to foreclosure forbearances expiring, an article in Forbes highlighted the “hotly debated foreclosure wave” and discussed the possibility that homes across the country would indeed go into foreclosure. As that article explained, by the end of September 2021, “nearly three-in-four loans (1.2 million loans) in forbearance reached the 18-month maximum limit as of the end of September.”
A recent report from MarketWatch suggests that the beginning of that foreclosure wave may have begun. What do you need to know about rising foreclosure rates in America?
Foreclosure Rates Have Increased Significantly in the New Year
For many months, commentators have been anticipating that foreclosure rates in the U.S. would rise. According to the MarketWatch report, that increase may have started in the New Year. As that report explains, the month of January saw “a seven-fold increase in foreclosure starts as compared to December, with roughly 33,000 loans referred to foreclosure.” In addition, repossessions through foreclosure rose by 70% between February 2021 and February 2022.
The report suggests that the recent rise in foreclosures is evidence of how “many of the regulatory protections implemented during the pandemic to help Americans stay in their homes are starting to wear off.” While a large percentage of foreclosure forbearances have expired for homeowners, it is important to know that many homeowners are still in forbearances in 2022, and those homes could also ultimately go into foreclosure once the forbearances end. Unless a significant economic improvement occurs, the report suggests, struggling homeowners are likely to face foreclosure.
Options to Avoid Having a Foreclosure on Your Credit Report
Facing foreclosure does not have to mean that your home goes through the foreclosure process and that you have to deal with the credit report effects of a completed foreclosure or the possibility of owing the bank significant amounts of money as a result of an underwater loan. Many different foreclosure defense options may exist, and many of them might allow you to avoid owing anything further to the bank. Our firm can help you with:
If you have questions about avoiding foreclosure with a short sale, a deed in lieu of foreclosure, or a consent judgment, you should seek advice from an experienced Oak Park foreclosure defense attorney at our firm. Do not hesitate to get in touch to find out more about preventing a foreclosure from affecting your credit report. Contact the Emerson Law Firm for more information about foreclosure defense options in Illinois.
See Related Blog Posts:
Illinois Court Denies Borrower Appeal Concerning Foreclosure Sale
What are the Steps for a Deed in Lieu of Foreclosure?
A recent report from MarketWatch suggests that the beginning of that foreclosure wave may have begun. What do you need to know about rising foreclosure rates in America?
Foreclosure Rates Have Increased Significantly in the New Year
For many months, commentators have been anticipating that foreclosure rates in the U.S. would rise. According to the MarketWatch report, that increase may have started in the New Year. As that report explains, the month of January saw “a seven-fold increase in foreclosure starts as compared to December, with roughly 33,000 loans referred to foreclosure.” In addition, repossessions through foreclosure rose by 70% between February 2021 and February 2022.
The report suggests that the recent rise in foreclosures is evidence of how “many of the regulatory protections implemented during the pandemic to help Americans stay in their homes are starting to wear off.” While a large percentage of foreclosure forbearances have expired for homeowners, it is important to know that many homeowners are still in forbearances in 2022, and those homes could also ultimately go into foreclosure once the forbearances end. Unless a significant economic improvement occurs, the report suggests, struggling homeowners are likely to face foreclosure.
Options to Avoid Having a Foreclosure on Your Credit Report
Facing foreclosure does not have to mean that your home goes through the foreclosure process and that you have to deal with the credit report effects of a completed foreclosure or the possibility of owing the bank significant amounts of money as a result of an underwater loan. Many different foreclosure defense options may exist, and many of them might allow you to avoid owing anything further to the bank. Our firm can help you with:
- Short sales, which allow you to sell the house, repay the bank the sale price, and negotiate with the bank to avoid a deficiency judgment related to any remaining debt owed on the property;
- Deed in lieu of foreclosure, in which you sign the property over the bank and negotiate to avoid having the bank come after you for debt owed by getting a deficiency judgment; or
- Consent judgment (also known as a consent foreclosure), in which a home owner gives up rights to the home and a foreclosure is completed, but the homeowner is not subject to a deficiency judgment.
If you have questions about avoiding foreclosure with a short sale, a deed in lieu of foreclosure, or a consent judgment, you should seek advice from an experienced Oak Park foreclosure defense attorney at our firm. Do not hesitate to get in touch to find out more about preventing a foreclosure from affecting your credit report. Contact the Emerson Law Firm for more information about foreclosure defense options in Illinois.
See Related Blog Posts:
Illinois Court Denies Borrower Appeal Concerning Foreclosure Sale
What are the Steps for a Deed in Lieu of Foreclosure?
Friday, February 25, 2022
Illinois Court Denies Borrower Appeal Concerning Foreclosure Sale
When can the automatic stay in a consumer bankruptcy case definitively stop a foreclosure sale from happening in Illinois? Can a foreclosure sale move forward if a debtor has filed for Chapter 13 bankruptcy, for example, and that debtor ultimately plans to include a mortgage in the repayment plan? And what steps might a debtor take in order to prevent a foreclosure sale after filing for bankruptcy? There are a number of ways in which foreclosures and consumer bankruptcy cases can be interrelated, and a recent ruling in the 1st District of the Appellate Court of Illinois provides some clarification. In BAC Home Loans Services, LP v. Short (2017), the court confirmed a judicial foreclosure sale after the debtor argued that a bankruptcy filing should have stopped the sale. Our Oak Park foreclosure defense attorneys can tell you more about the case and some of its potential implications.
Getting the Facts of the Case
Back in 2007, the debtor and his wife bought a house in Illinois, but they later defaulted on the mortgage. Following significant litigation, the court ultimately entered a judgment allowing for the foreclosure and sale of the property, noting that “if a redemption was not made, the property would be sold at a public sale.” While there were multiple stays of the foreclosure sale, the foreclosure sale ultimately occurred on February 8, 2019, and the U.S. Bank purchased the property. The debtor argued that the foreclosure sale should not have been able to occur because he filed a petition for Chapter 13 bankruptcy at 11:29 a.m. on February 8, 2019—the same date as the foreclosure sale—and the automatic stay should have stopped the foreclosure.
U.S. Bank, which purchased the property in the foreclosure sale, argued that the foreclosure sale did not occur in violation of the automatic stay because the foreclosure sale occurred at 10:41 a.m. on February 8, 2019, prior to but less than an hour before the debtor filed the bankruptcy petition. At the circuit court, both parties were permitted to provide evidence about the specific time that the foreclosure sale occurred. The court confirmed the foreclosure sale, and the debtor appealed. Ultimately, the appellate court confirmed the lower court’s ruling and concluded that the debtor had not submitted evidence to prove that evidence existed that the bankruptcy filing occurred prior to the foreclosure sale.
The court underscored that, had the debtor produced evidence that the foreclosure sale occurred after the bankruptcy filing, the sale would have been in violation of the automatic stay.
Contact Our Experienced Foreclosure Defense Lawyers in Oak Park
Do you have questions about keeping a foreclosure off your credit report or stopping a judicial foreclosure? You may have multiple options available to avoid foreclosure, including the possibility of a short sale, a deed in lieu of foreclosure, or even a Chapter 13 bankruptcy filing. Do not hesitate to get in touch with an Oak Park foreclosure defense lawyer at our firm to learn more about how we can assist you. Contact the Emerson Law Firm for more information.
See Related Blog Posts:
What are the Steps for a Deed in Lieu of Foreclosure?
Pros and Cons of a Deed in Lieu of Foreclosure
Getting the Facts of the Case
Back in 2007, the debtor and his wife bought a house in Illinois, but they later defaulted on the mortgage. Following significant litigation, the court ultimately entered a judgment allowing for the foreclosure and sale of the property, noting that “if a redemption was not made, the property would be sold at a public sale.” While there were multiple stays of the foreclosure sale, the foreclosure sale ultimately occurred on February 8, 2019, and the U.S. Bank purchased the property. The debtor argued that the foreclosure sale should not have been able to occur because he filed a petition for Chapter 13 bankruptcy at 11:29 a.m. on February 8, 2019—the same date as the foreclosure sale—and the automatic stay should have stopped the foreclosure.
U.S. Bank, which purchased the property in the foreclosure sale, argued that the foreclosure sale did not occur in violation of the automatic stay because the foreclosure sale occurred at 10:41 a.m. on February 8, 2019, prior to but less than an hour before the debtor filed the bankruptcy petition. At the circuit court, both parties were permitted to provide evidence about the specific time that the foreclosure sale occurred. The court confirmed the foreclosure sale, and the debtor appealed. Ultimately, the appellate court confirmed the lower court’s ruling and concluded that the debtor had not submitted evidence to prove that evidence existed that the bankruptcy filing occurred prior to the foreclosure sale.
The court underscored that, had the debtor produced evidence that the foreclosure sale occurred after the bankruptcy filing, the sale would have been in violation of the automatic stay.
Contact Our Experienced Foreclosure Defense Lawyers in Oak Park
Do you have questions about keeping a foreclosure off your credit report or stopping a judicial foreclosure? You may have multiple options available to avoid foreclosure, including the possibility of a short sale, a deed in lieu of foreclosure, or even a Chapter 13 bankruptcy filing. Do not hesitate to get in touch with an Oak Park foreclosure defense lawyer at our firm to learn more about how we can assist you. Contact the Emerson Law Firm for more information.
See Related Blog Posts:
What are the Steps for a Deed in Lieu of Foreclosure?
Pros and Cons of a Deed in Lieu of Foreclosure
Friday, January 21, 2022
What are the Steps for a Deed in Lieu of Foreclosure?
If your home is going into foreclosure and you want to take steps to avoid foreclosure, a deed in lieu of foreclosure is one option that you may consider. While a deed in lieu of foreclosure will not allow you to stay in your house or condo, it can allow you to avoid having a foreclosure on your credit report. With a deed in lieu of foreclosure, you will voluntarily transfer your house over to the bank, as the CFPB explains, and the bank will agree that it will stop taking steps toward foreclosure. In effect, you will walk away from the house, but you will not have to contend with the credit hit of a foreclosure. If you are considering a deed in lieu of foreclosure, you should understand how the process works. Our Oak Park foreclosure defense lawyers can tell you about the steps involved in this process.
Contact the Lender’s Loss Mitigation Department
The process for a deed in lieu of foreclosure typically begins when a homeowner who is at risk of foreclosure contacts the loss mitigation department for the lender and asks for information about a deed in lieu of foreclosure, and an application for this loss mitigation option.
Fill Out the Application
Next, the homeowner will fill out the application, and will typically need to submit a variety of documents to the lender that provide details about the homeowner’s finances, including evidence of the homeowner’s income, tax returns, bank statements, detailed information about income and expenses, and a hardship affidavit. With a hardship affidavit, which is sometimes known as a hardship letter, the homeowner will clarify that they cannot continue to make mortgage payments on the house, and thus that the homeowner is seeking a deed in lieu of foreclosure.
You should know that, in some circumstances, a lender will want to see if it is possible to sell the house before moving forward with a deed in lieu of foreclosure, so you may be required to put the home on the market.
Lender Will Do a Title Search
If your home cannot sell for fair market value, the lender will then do a title search on the property in order to determine whether it can accept a deed in lieu of foreclosure. If you have a second mortgage on the property, a deed in lieu of foreclosure may not be possible unless the same bank is the lender for both your first and your second mortgage. Similarly, if there are any liens on the property, the homeowner will often need to resolve those liens before a deed in lieu of foreclosure can be completed.
Negotiate the Agreement With the Lender
Before you sign over the property, it is important to work with an Oak Park foreclosure defense attorney to negotiate any terms with the bank that can benefit you. Most importantly, you will want to address the issue of a deficiency judgment and whether the bank can file a claim against you to seek the difference between the current market value of the property and the amount of mortgage debt you owe. You will want to make sure the bank cannot pursue a deficiency judgment and that your mortgage debt will be satisfied when you sign over the property.
Sign Over the Property
Finally, you will sign the deed in lieu of foreclosure and transfer the property to the lender.
Contact a Foreclosure Defense Lawyer in Oak Park
If you have questions about avoiding foreclosure, our Oak Park foreclosure defense attorneys can help. Contact the Emerson Law Firm today.
See Related Blog Posts:
Pros and Cons of a Deed in Lieu of Foreclosure
How Do I Complete a Short Sale?
Contact the Lender’s Loss Mitigation Department
The process for a deed in lieu of foreclosure typically begins when a homeowner who is at risk of foreclosure contacts the loss mitigation department for the lender and asks for information about a deed in lieu of foreclosure, and an application for this loss mitigation option.
Fill Out the Application
Next, the homeowner will fill out the application, and will typically need to submit a variety of documents to the lender that provide details about the homeowner’s finances, including evidence of the homeowner’s income, tax returns, bank statements, detailed information about income and expenses, and a hardship affidavit. With a hardship affidavit, which is sometimes known as a hardship letter, the homeowner will clarify that they cannot continue to make mortgage payments on the house, and thus that the homeowner is seeking a deed in lieu of foreclosure.
You should know that, in some circumstances, a lender will want to see if it is possible to sell the house before moving forward with a deed in lieu of foreclosure, so you may be required to put the home on the market.
Lender Will Do a Title Search
If your home cannot sell for fair market value, the lender will then do a title search on the property in order to determine whether it can accept a deed in lieu of foreclosure. If you have a second mortgage on the property, a deed in lieu of foreclosure may not be possible unless the same bank is the lender for both your first and your second mortgage. Similarly, if there are any liens on the property, the homeowner will often need to resolve those liens before a deed in lieu of foreclosure can be completed.
Negotiate the Agreement With the Lender
Before you sign over the property, it is important to work with an Oak Park foreclosure defense attorney to negotiate any terms with the bank that can benefit you. Most importantly, you will want to address the issue of a deficiency judgment and whether the bank can file a claim against you to seek the difference between the current market value of the property and the amount of mortgage debt you owe. You will want to make sure the bank cannot pursue a deficiency judgment and that your mortgage debt will be satisfied when you sign over the property.
Sign Over the Property
Finally, you will sign the deed in lieu of foreclosure and transfer the property to the lender.
Contact a Foreclosure Defense Lawyer in Oak Park
If you have questions about avoiding foreclosure, our Oak Park foreclosure defense attorneys can help. Contact the Emerson Law Firm today.
See Related Blog Posts:
Pros and Cons of a Deed in Lieu of Foreclosure
How Do I Complete a Short Sale?
Thursday, December 23, 2021
Pros and Cons of a Deed in Lieu of Foreclosure
Are you struggling to make your mortgage payments and at risk of foreclosure? For many Illinois residents, avoiding foreclosure is the most important thing, even if it means you need to move into a new residence until you can get caught up financially. If you are in this situation, you may be assessing different options that are available to you, including allowing your home to go into foreclosure, considering a short sale, or arranging for a deed in lieu of foreclosure. A deed in lieu of foreclosure has both pros and cons as a recent Forbes article discusses, and our Oak Park foreclosure defense attorneys want to discuss them with you here.
Pros of the Deed in Lieu of Foreclosure
There are many pros or advantages to a deed in lieu of foreclosure, particularly as an alternative to foreclosure itself. The following are some of the central benefits to a deed in lieu of foreclosure:
What are some of the issues with a deed in lieu of foreclosure that may be disadvantages? Consider the following:
Do you have questions about a deed in lieu of foreclosure? An Oak Park foreclosure defense attorney is here to help. Contact the Emerson Law Firm today for more information.
See Related Blog Posts:
How Do I Complete a Short Sale?
Benefits of a Short Sale Instead of Foreclosure
Pros of the Deed in Lieu of Foreclosure
There are many pros or advantages to a deed in lieu of foreclosure, particularly as an alternative to foreclosure itself. The following are some of the central benefits to a deed in lieu of foreclosure:
- Quicker way to avoid foreclosure and to move forward: When the bank agrees to a deed in lieu of foreclosure, you should expect the process to take anywhere from approximately 90 to 120 business days, which is significantly faster than a foreclosure and can allow you to move forward much more quickly with your life.
- Prevent additional financial harm: Once you decide on a deed in lieu of foreclosure, you will not risk missing additional mortgage payments, falling farther behind on your loan, or harming your credit any further. Although your credit will be affected by the mortgage payments you have missed, the impact to your credit will be significantly less than a foreclosure.
- Relocation assistance may be available: Depending upon the details of your case, you could be eligible to seek relocation assistance from your mortgage servicer if you go through with the deed in lieu of foreclosure and move out of your home. In some cases, you could be eligible to obtain up to $3,000 in relocation assistance for a conventional mortgage and up to $2,000 for an FHA loan.
- Remain in your property temporarily: Once the bank agrees to a deed in lieu of foreclosure, you can be eligible in some cases to remain in your home for one or more months, which can give you time to find another place to live while still avoiding foreclosure.
- Qualify sooner for a mortgage: If you choose a deed in lieu of foreclosure instead of your property going into foreclosure, you can qualify sooner for a mortgage and can buy another property once you get back on track with your finances.
What are some of the issues with a deed in lieu of foreclosure that may be disadvantages? Consider the following:
- Your credit report will be harmed (although not as much as it would be with a foreclosure);
- Deed in lieu of foreclosure can stay on your credit report for up to 7 years;
- You could owe money to the bank if the mortgage servicer gets a deficiency judgment against you, so it is important to ensure that the bank agrees to forgive any remaining debt you owe;
- You will owe income taxes on the debt that the bank has forgiven; and
- You will not be able to keep any equity in your home.
Do you have questions about a deed in lieu of foreclosure? An Oak Park foreclosure defense attorney is here to help. Contact the Emerson Law Firm today for more information.
See Related Blog Posts:
How Do I Complete a Short Sale?
Benefits of a Short Sale Instead of Foreclosure
Wednesday, November 24, 2021
How Do I Complete a Short Sale?
If your home is at risk of going into foreclosure, you may be able to avoid foreclosure by moving forward with a short sale. There are other options for avoiding foreclosure that may be available to you as well, but a short sale can allow you to sell your house and move on, ideally without owing anything to the bank in the future. Short sales are particularly helpful for homeowners who are struggling with underwater mortgages. While the real estate market remains a seller’s market in many parts of the country, anyone who purchased a home at the peak of the real estate market may be struggling to make payments on a property for which they paid a significant amount of money and for which the property would be likely to sell for a lesser amount in the present. For these homeowners, a short sale may be the best option.
If you are considering a short sale, how can you complete this process? Our Oak Park foreclosure defense lawyers can provide you with the information you need.
Learn About Short Sales
The first step in completing a short sale is to learn more about the process and what it entails. As a Bank Rate article explains, a short sale is the sale of a property that occurs “when a lender agrees to accept a mortgage payoff amount less than what is owed in order to facilitate a sale of the property by a financially distressed owner.” Then, in most short sales, the owner enters into an agreement with the lender that it will forgive any amount remaining on the mortgage so that the owner can walk away without owing the bank any additional money.
To clarify, let us give you an example: A homeowner purchased a property for $500,000 and has a mortgage payment of approximately $2,400 per month. The homeowner is struggling to make that monthly mortgage payment and is behind on the loan by numerous months of payments. The homeowner wants to avoid a foreclosure, but the property has recently been appraised at only $300,000, and the homeowner still owes $400,000 on the original loan. With a short sale, the bank can agree to accept $300,000 and to forgive the remaining $100,000 the homeowner owes on the loan.
Work With an Attorney to Obtain Approval From Your Lender
Once you understand how the short sale process works, you can begin by working with your foreclosure defense attorney to obtain approval from your lender to complete a short sale. Once your lender approves, then you can move forward by listing the property as a short sale with a real estate agent who has experience handling short sale properties.
Get an Offer
Next, you will need to find a buyer who is interested in the property and who makes an offer. Properties that are sold as short sales are sold on an as-is basis, so some homebuyers may not be interested in making an offer or may not be able to secure funding to purchase the property.
Present the Offer to the Lender
Once you have an offer, you will need to submit the information to the lender, who will need to approve of the sale price and the other aspects of the sale.
Contact an Oak Park Foreclosure Defense Attorney
If you have questions about completing a short sale to avoid foreclosure, an Oak Park foreclosure defense lawyer at our firm can assist you. Contact the Emerson Law Firm today.
See Related Blog Posts:
Benefits of a Short Sale Instead of Foreclosure
Short Sale or Chapter 7 Bankruptcy?
If you are considering a short sale, how can you complete this process? Our Oak Park foreclosure defense lawyers can provide you with the information you need.
Learn About Short Sales
The first step in completing a short sale is to learn more about the process and what it entails. As a Bank Rate article explains, a short sale is the sale of a property that occurs “when a lender agrees to accept a mortgage payoff amount less than what is owed in order to facilitate a sale of the property by a financially distressed owner.” Then, in most short sales, the owner enters into an agreement with the lender that it will forgive any amount remaining on the mortgage so that the owner can walk away without owing the bank any additional money.
To clarify, let us give you an example: A homeowner purchased a property for $500,000 and has a mortgage payment of approximately $2,400 per month. The homeowner is struggling to make that monthly mortgage payment and is behind on the loan by numerous months of payments. The homeowner wants to avoid a foreclosure, but the property has recently been appraised at only $300,000, and the homeowner still owes $400,000 on the original loan. With a short sale, the bank can agree to accept $300,000 and to forgive the remaining $100,000 the homeowner owes on the loan.
Work With an Attorney to Obtain Approval From Your Lender
Once you understand how the short sale process works, you can begin by working with your foreclosure defense attorney to obtain approval from your lender to complete a short sale. Once your lender approves, then you can move forward by listing the property as a short sale with a real estate agent who has experience handling short sale properties.
Get an Offer
Next, you will need to find a buyer who is interested in the property and who makes an offer. Properties that are sold as short sales are sold on an as-is basis, so some homebuyers may not be interested in making an offer or may not be able to secure funding to purchase the property.
Present the Offer to the Lender
Once you have an offer, you will need to submit the information to the lender, who will need to approve of the sale price and the other aspects of the sale.
Contact an Oak Park Foreclosure Defense Attorney
If you have questions about completing a short sale to avoid foreclosure, an Oak Park foreclosure defense lawyer at our firm can assist you. Contact the Emerson Law Firm today.
See Related Blog Posts:
Benefits of a Short Sale Instead of Foreclosure
Short Sale or Chapter 7 Bankruptcy?
Friday, October 15, 2021
Benefits of a Short Sale Instead of Foreclosure
If you are facing foreclosure after getting far behind on your mortgage payments, you might be considering certain options to avoid foreclosure even if you cannot remain in your property. While your ultimate goal at the start might have been a foreclosure defense option that allowed you to get back on track with your mortgage payments, you may have reached the point at which you are realizing that you will need to move out of your home and find a new place to live. In such situations, you might be asking yourself if there is really any benefit to going through a process to avoid foreclosure such as a short sale or a deed in lieu of foreclosure. In other words, you might be thinking it could make more sense to simply allow the foreclosure to happen. Our Oak Park foreclosure defense lawyers want to explain the many and varied benefits of a short sale instead of a foreclosure.
You Can be Eligible for Another Mortgage Much Sooner
By going through a short sale instead of allowing the foreclosure process to continue, you can be eligible for another mortgage much sooner. Having a foreclosure on your credit can be extremely damaging, and you should take steps as soon as possible to avoid it. As the Federal Trade Commission (FTC) explains, if your home goes into foreclosure, you will likely need to wait for seven years before you are eligible for another mortgage. However, if you have a short sale instead, you may be able to qualify for a mortgage again in just five years.
Shorts Sales Do Not Affect Your Credit as Much as Foreclosures
Short sales are much less damaging to your credit than foreclosures, which means you will be able to rebuild your credit much faster with a short sale instead of a foreclosure. Indeed, as we noted above, you may be able to get another mortgage in as little as two years if you work with a lawyer on a short sale instead of simply letting the foreclosure happen.
You Will Have More Control of the Process
Learning that your home is going into foreclosure can be extremely stressful, and most homeowners feel completely out of control in the process. By choosing to move forward with a short sale and avoiding foreclosure, you can also ensure that you have more control over the process. Although you will still need to work with a lawyer to engage in negotiations and to ensure that all documents are appropriately filled out and filed, you will not need to go through the more emotionally arduous process of a foreclosure.
It is important to recognize that having some control in the short sale process also means that you can work with your lawyer to ensure that the bank waives plans for a deficiency judgment so that you will be free and clear once the house sells.
Contact an Oak Park Short Sale Lawyer Today
If you have questions about short sales, or if you need assistance with foreclosure defense in Illinois, one of our dedicated Oak Park foreclosure defense attorneys can speak with you about the benefits of short sales. Contact the Emerson Law Firm today to learn more about how we can assist you.
See Related Blog Posts:
Short Sale or Chapter 7 Bankruptcy?
Five Things to Know About Short Sales
You Can be Eligible for Another Mortgage Much Sooner
By going through a short sale instead of allowing the foreclosure process to continue, you can be eligible for another mortgage much sooner. Having a foreclosure on your credit can be extremely damaging, and you should take steps as soon as possible to avoid it. As the Federal Trade Commission (FTC) explains, if your home goes into foreclosure, you will likely need to wait for seven years before you are eligible for another mortgage. However, if you have a short sale instead, you may be able to qualify for a mortgage again in just five years.
Shorts Sales Do Not Affect Your Credit as Much as Foreclosures
Short sales are much less damaging to your credit than foreclosures, which means you will be able to rebuild your credit much faster with a short sale instead of a foreclosure. Indeed, as we noted above, you may be able to get another mortgage in as little as two years if you work with a lawyer on a short sale instead of simply letting the foreclosure happen.
You Will Have More Control of the Process
Learning that your home is going into foreclosure can be extremely stressful, and most homeowners feel completely out of control in the process. By choosing to move forward with a short sale and avoiding foreclosure, you can also ensure that you have more control over the process. Although you will still need to work with a lawyer to engage in negotiations and to ensure that all documents are appropriately filled out and filed, you will not need to go through the more emotionally arduous process of a foreclosure.
It is important to recognize that having some control in the short sale process also means that you can work with your lawyer to ensure that the bank waives plans for a deficiency judgment so that you will be free and clear once the house sells.
Contact an Oak Park Short Sale Lawyer Today
If you have questions about short sales, or if you need assistance with foreclosure defense in Illinois, one of our dedicated Oak Park foreclosure defense attorneys can speak with you about the benefits of short sales. Contact the Emerson Law Firm today to learn more about how we can assist you.
See Related Blog Posts:
Short Sale or Chapter 7 Bankruptcy?
Five Things to Know About Short Sales
Tuesday, August 10, 2021
Five Things to Know About Short Sales
If you are facing foreclosure due to the inability to make mortgage payments, it is important to consider ways of avoiding foreclosure—even if you cannot remain in your home. While a number of foreclosure avoidance options may not allow a struggling homeowner to keep the house, they can prevent a damaging foreclosure sale and everything it means for the debtor’s credit. Short sales are one option to avoid foreclosure in Oak Park and throughout Illinois. If you have never considered foreclosure prevention options in the past, the prospect of a short sale can be confusing. However, our experienced Oak Park foreclosure defense lawyers are here to assist you. The following are five things to know about short sales.
Short Sales are One Option to Avoid Foreclosure
As we mentioned above, short sales are one option to avoid foreclosure. Other options may include, for example, a deed-in-lieu of foreclosure or even a Chapter 13 bankruptcy filing if you are eligible. Unlike a short sale and a deed-in-lieu, a Chapter 13 bankruptcy can allow you to remain in your home and to get back on track with mortgage payments. When Chapter 13 is not an option, a short sale or deed-in-lieu can allow you to avoid dealing with the more severe consequences of a foreclosure.
Short Sales Can Still Damage Your Credit, But to a Lesser Extent Than Foreclosure
You should know that a short sale will still result in some damage to your credit. However, its effects will be much less significant than a foreclosure.
You Will Need Lender Approval to Do a Short Sale
You cannot simply decide to do a short sale on your own and move forward with the process. Instead, you will need to seek approval from the lender, and it will be critical to ensure that the lender agrees to forgive any remaining debt after the sale goes through.
Short Sales Can Take Some Time
Since short sales are complex, you should not expect that they will necessarily be quick. While short sales can happen relatively quickly, they can take many months.
Short Sales Tend to Fall Through More Often Than Traditional House Sales
If you are trying to sell your home through a short sale, it is essential to keep in mind that these are complex transactions and that there are often more routes for the lender or the buyer to back out, according to Bankrate. As such, while short sales are frequently strong foreclosure avoidance options for struggling homeowners, it is important to know that short sales do fall through with some frequency.
Contact Our Oak Park Foreclosure Defense Lawyers
Do you have questions about avoiding foreclosure or about short sales more specifically? One of our experienced Oak Park foreclosure defense attorneys can speak with you today about your options. We routinely assist homeowners with a variety of foreclosure defense strategies, including short sales, deed-in-lieu of foreclosure, and Chapter 13 bankruptcy. Contact the Emerson Law Firm today for more information about how we can assist you.
See Related Blog Posts:
What is a Consent Foreclosure?
My Home is Going Into Foreclosure: Should I Consider a Short Sale or Deed in Lieu of Foreclosure?
Short Sales are One Option to Avoid Foreclosure
As we mentioned above, short sales are one option to avoid foreclosure. Other options may include, for example, a deed-in-lieu of foreclosure or even a Chapter 13 bankruptcy filing if you are eligible. Unlike a short sale and a deed-in-lieu, a Chapter 13 bankruptcy can allow you to remain in your home and to get back on track with mortgage payments. When Chapter 13 is not an option, a short sale or deed-in-lieu can allow you to avoid dealing with the more severe consequences of a foreclosure.
Short Sales Can Still Damage Your Credit, But to a Lesser Extent Than Foreclosure
You should know that a short sale will still result in some damage to your credit. However, its effects will be much less significant than a foreclosure.
You Will Need Lender Approval to Do a Short Sale
You cannot simply decide to do a short sale on your own and move forward with the process. Instead, you will need to seek approval from the lender, and it will be critical to ensure that the lender agrees to forgive any remaining debt after the sale goes through.
Short Sales Can Take Some Time
Since short sales are complex, you should not expect that they will necessarily be quick. While short sales can happen relatively quickly, they can take many months.
Short Sales Tend to Fall Through More Often Than Traditional House Sales
If you are trying to sell your home through a short sale, it is essential to keep in mind that these are complex transactions and that there are often more routes for the lender or the buyer to back out, according to Bankrate. As such, while short sales are frequently strong foreclosure avoidance options for struggling homeowners, it is important to know that short sales do fall through with some frequency.
Contact Our Oak Park Foreclosure Defense Lawyers
Do you have questions about avoiding foreclosure or about short sales more specifically? One of our experienced Oak Park foreclosure defense attorneys can speak with you today about your options. We routinely assist homeowners with a variety of foreclosure defense strategies, including short sales, deed-in-lieu of foreclosure, and Chapter 13 bankruptcy. Contact the Emerson Law Firm today for more information about how we can assist you.
See Related Blog Posts:
What is a Consent Foreclosure?
My Home is Going Into Foreclosure: Should I Consider a Short Sale or Deed in Lieu of Foreclosure?
Friday, April 30, 2021
Is a Mortgage Modification My Only Option to Avoid Foreclosure?
When you are struggling to make mortgage payments, the prospect of losing your home can be devastating. For far too many Americans, the COVID-19 pandemic has resulted in immense job losses and the inability to make payments on loans and other lines of credit, including mortgages. Since there is so much information about foreclosure on the internet, it can be difficult to obtain factual information that can actually help you to understand your options. Even if you have not conducted internet searches for options to avoid foreclosure, you might not be getting the whole picture from a friend or family member who relied on a mortgage modification to avoid losing their home.
In short, misconceptions about foreclosure prevention abound, and it is critical to speak with an experienced Oak Park foreclosure defense attorney who can provide you with accurate and detailed information about the full range of options that may be available to you. Mortgage modification may be one option for avoiding foreclosure, but it is not the only option.
Seek a Mortgage Modification
A mortgage modification can be one path to avoiding foreclosure. With a mortgage or loan modification, the homeowner asks the lender to change the terms of the loan in order to make the monthly mortgage payment lower. A modification can involve adding additional payments to the loan, extending the length of the loan, or reducing the interest rate, for example.
Obtain a Forbearance
If you are struggling in the short term but you expect to be able to resume making regular mortgage payments in the near future, your lender may be willing to agree to a forbearance. With a forbearance agreement, you may be able to make reduced mortgage payments, or no mortgage payments at all, for a particular period of time.
File for Chapter 13 Bankruptcy
Chapter 13 bankruptcy is an extremely helpful tool for homeowners who want to avoid foreclosure and get back on track with their loan. In a Chapter 13 bankruptcy, the automatic stay will prevent the lender from moving forward with any foreclosure actions, and you will be able to include your mortgage in your bankruptcy repayment plan. However, to qualify for Chapter 13 bankruptcy, you will need to be able to show the court that you can make payments on your bankruptcy plan over a period of three to five years.
Refinance Your Loan
Sometimes homeowners who are struggling to make payments have loans with unfavorable terms. It may be possible to refinance your loan for a better rate, thereby resulting in significantly lower monthly mortgage payments. However, refinancing may not be an option if your credit has already taken a hit due to missed mortgage payments.
Consider a Short Sale
The above options are all ways that you may be able to prevent foreclosure and remain in your home, which is what most homeowners are hoping for when they begin looking for information about foreclosure avoidance. Yet in some cases, it is not possible to remain in the home. With a short sale, you will not be able to keep your house, but you will be able to avoid having a foreclosure on your credit.
Contact Our Oak Park Foreclosure Defense Lawyers
If you have questions about foreclosure avoidance options, one of our experienced Oak Park foreclosure defense attorneys can help you. Contact the Emerson Law Firm to learn about your options.
See Related Blog Posts:
How Long Can Foreclosure Suspensions Last?
Extended Foreclosure Moratorium Will Help Homeowners
In short, misconceptions about foreclosure prevention abound, and it is critical to speak with an experienced Oak Park foreclosure defense attorney who can provide you with accurate and detailed information about the full range of options that may be available to you. Mortgage modification may be one option for avoiding foreclosure, but it is not the only option.
Seek a Mortgage Modification
A mortgage modification can be one path to avoiding foreclosure. With a mortgage or loan modification, the homeowner asks the lender to change the terms of the loan in order to make the monthly mortgage payment lower. A modification can involve adding additional payments to the loan, extending the length of the loan, or reducing the interest rate, for example.
Obtain a Forbearance
If you are struggling in the short term but you expect to be able to resume making regular mortgage payments in the near future, your lender may be willing to agree to a forbearance. With a forbearance agreement, you may be able to make reduced mortgage payments, or no mortgage payments at all, for a particular period of time.
File for Chapter 13 Bankruptcy
Chapter 13 bankruptcy is an extremely helpful tool for homeowners who want to avoid foreclosure and get back on track with their loan. In a Chapter 13 bankruptcy, the automatic stay will prevent the lender from moving forward with any foreclosure actions, and you will be able to include your mortgage in your bankruptcy repayment plan. However, to qualify for Chapter 13 bankruptcy, you will need to be able to show the court that you can make payments on your bankruptcy plan over a period of three to five years.
Refinance Your Loan
Sometimes homeowners who are struggling to make payments have loans with unfavorable terms. It may be possible to refinance your loan for a better rate, thereby resulting in significantly lower monthly mortgage payments. However, refinancing may not be an option if your credit has already taken a hit due to missed mortgage payments.
Consider a Short Sale
The above options are all ways that you may be able to prevent foreclosure and remain in your home, which is what most homeowners are hoping for when they begin looking for information about foreclosure avoidance. Yet in some cases, it is not possible to remain in the home. With a short sale, you will not be able to keep your house, but you will be able to avoid having a foreclosure on your credit.
Contact Our Oak Park Foreclosure Defense Lawyers
If you have questions about foreclosure avoidance options, one of our experienced Oak Park foreclosure defense attorneys can help you. Contact the Emerson Law Firm to learn about your options.
See Related Blog Posts:
How Long Can Foreclosure Suspensions Last?
Extended Foreclosure Moratorium Will Help Homeowners
Friday, March 26, 2021
How Long Can Foreclosure Suspensions Last?
For homeowners in Oak Park and across the country, the suspension of evictions and foreclosures during the pandemic has meant that concerns about losing a home due to the inability to make mortgage payments have not loomed as prominently as they likely would have given the effects of COVID-19 on the economy. However, each time the eviction and foreclosure moratoriums have been extended, they have had a clear end date. According to a recent CNN article, struggling homeowners should begin making plans to ensure that their homes do not go into foreclosure when the current moratorium expires. As that article underscores, foreclosure suspensions simply cannot last forever.
Consider the Current Moratorium
The initial eviction and foreclosure moratoriums that went into effect early on in the pandemic were extended, but homeowners should keep in mind that expiration dates are not too far in the future. The current foreclosure moratorium will expire at the end of June 2021, and the current statistics are grim when it comes to struggling individuals and families who could be at risk of losing their homes. As the article underscores, there are about “six million families behind on their rent and three million behind on their mortgage.”
What will happen to struggling homeowners with the expiration of the foreclosure moratorium? Eligible homeowners currently can have a forbearance of up to 18 months, with unpaid mortgage payments during that time period getting added onto the total amount of the mortgage so that the payments are made up later on. Some homeowners will be eligible to seek a mortgage modification so that their monthly payments are lowered. In addition, according to the article, “Congress has appropriated $10 billion in mortgage payment relief, which will likely go towards deeper assistance for those for whom the existing relief isn’t enough.”
Options for Homeowners When the Moratorium Ends
When the foreclosure moratorium ends and mortgage payments are due, what options will homeowners have if they still have not recovered financially from the pandemic and have not been able to find employment? Generally speaking, homeowners may be able to consider similar foreclosure-prevention options that were available prior to the pandemic, from mortgage modifications to the possibility of filing for Chapter 13 bankruptcy. Yet it is important to remember that Chapter 13 bankruptcy is only an option for staying in your home and avoiding foreclosure if you have an income and are able to show that you can make the payments associated with your debt repayment plan.
Struggling homeowners should also speak with a foreclosure defense attorney about additional relief options that may become available by the time mortgage payments are due. Your foreclosure defense lawyer can discuss the variety of options that may be available to you to avoid foreclosure and can help you with a Chapter 13 bankruptcy filing if that is the best option for you and your family.
Contact Our Oak Park Foreclosure Defense Lawyers
Do you need assistance avoiding foreclosure? Our Oak Park foreclosure defense attorneys are here to help. Contact the Emerson Law Firm for more information about preventing foreclosure and remaining in your home.
See Related Blog Posts:
Extended Foreclosure Moratorium Will Help Homeowners
Foreclosure Ban Extended
Consider the Current Moratorium
The initial eviction and foreclosure moratoriums that went into effect early on in the pandemic were extended, but homeowners should keep in mind that expiration dates are not too far in the future. The current foreclosure moratorium will expire at the end of June 2021, and the current statistics are grim when it comes to struggling individuals and families who could be at risk of losing their homes. As the article underscores, there are about “six million families behind on their rent and three million behind on their mortgage.”
What will happen to struggling homeowners with the expiration of the foreclosure moratorium? Eligible homeowners currently can have a forbearance of up to 18 months, with unpaid mortgage payments during that time period getting added onto the total amount of the mortgage so that the payments are made up later on. Some homeowners will be eligible to seek a mortgage modification so that their monthly payments are lowered. In addition, according to the article, “Congress has appropriated $10 billion in mortgage payment relief, which will likely go towards deeper assistance for those for whom the existing relief isn’t enough.”
Options for Homeowners When the Moratorium Ends
When the foreclosure moratorium ends and mortgage payments are due, what options will homeowners have if they still have not recovered financially from the pandemic and have not been able to find employment? Generally speaking, homeowners may be able to consider similar foreclosure-prevention options that were available prior to the pandemic, from mortgage modifications to the possibility of filing for Chapter 13 bankruptcy. Yet it is important to remember that Chapter 13 bankruptcy is only an option for staying in your home and avoiding foreclosure if you have an income and are able to show that you can make the payments associated with your debt repayment plan.
Struggling homeowners should also speak with a foreclosure defense attorney about additional relief options that may become available by the time mortgage payments are due. Your foreclosure defense lawyer can discuss the variety of options that may be available to you to avoid foreclosure and can help you with a Chapter 13 bankruptcy filing if that is the best option for you and your family.
Contact Our Oak Park Foreclosure Defense Lawyers
Do you need assistance avoiding foreclosure? Our Oak Park foreclosure defense attorneys are here to help. Contact the Emerson Law Firm for more information about preventing foreclosure and remaining in your home.
See Related Blog Posts:
Extended Foreclosure Moratorium Will Help Homeowners
Foreclosure Ban Extended
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