I’ve Been Late On My Mortgage For Several Months. When Is The Bank Likely To Start Foreclosure Proceedings?

Lenders generally wait 4-5 months before initiating foreclosure proceedings due to missed payments. Federal regulations prohibit lenders from filing a foreclosure case in most cases. Typically, by the fifth or the sixth month of missed payment, a summons and a complaint will be filed to begin the process of foreclosure. A homeowner has several options – both before the after the foreclosure process begins – to either save their home or create an exit strategy.

For more information regarding your options, an initial consultation is your best next step. Get the information and legal answers you are seeking by calling (312) 600-8815 today.

What Is A Loan Modification? Can It Prevent Foreclosure?
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A loan modification is a restructuring of an existing loan that provides an opportunity for the borrower to continue as a customer with the lender, with the goal of lowering monthly payments, and preventing foreclosure. Loans can be modified by lowering interest rates, extending maturity dates, forgiving some of the debt, and/or deferring some of the debt.

A loan modification de-accelerates the loan. In a pending mortgage foreclosure case, a lender may demand an accelerated payment timeline, requesting the full amount of the debt borrowed to be paid back in one lumpsum. A successful loan modification can help de-accelerate that loan so the homeowner can resume making regular monthly mortgage payments. A loan modification is a wonderful option for homeowners who are trying to save their homes.

For more information regarding your options, an initial consultation is your best next step. Get the information and legal answers you are seeking by calling (312) 600-8815 today.

Will A Forbearance Agreement Save My Property From Foreclosure?

A forbearance agreement is a temporary suspension of the borrower’s mortgage payments to the lender. While it can be very helpful if the homeowner is going through a temporary hardship, it is not a permanent solution, and usually not the best option for preventing foreclosure. Once the forbearance period ends, the lender will either demand that the homeowner pay all of the suspended amounts in a lump sum, or the homeowner will have to apply for, and receive, a modification from the bank in order to spread those payments out over the life of the loan; this is usually done by raising the monthly payment amount.

For more information regarding your options, an initial consultation is your best next step. Get the information and legal answers you are seeking by calling (312) 600-8815 today.

What Is A Deed In Lieu Of Foreclosure?

A deed in lieu of foreclosure is a process where the homeowner transfers the title to the property back to the mortgage lender. In this case, the homeowner is giving the property back to the bank in exchange for a release of any personal liability they had under the loan. Deed in lieu of foreclosure is a good option if there are compelling reasons for the borrower not to save the home; for example, if the home is worth less than the mortgage owed. This process may also make sense for a homeowner with life circumstances that necessitate leaving the home, such as an out of state job. Deed in lieu of foreclosure is a scenario where a homeowner is not trying to save their home and they can walk away, clean, without liability.

A deed in lieu of foreclosure is not a good option for homeowners who have a goal of saving the property from foreclosure. It also may not be an appropriate course of action for borrowers who have additional mortgage liens or other liens on the property title. These additional liens can complicate the deed in lieu of foreclosure process.
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For more information regarding your options, an initial consultation is your best next step. Get the information and legal answers you are seeking by calling (312) 600-8815 today.

What Is A Short Sale? Can Is Save Me From Foreclosure?

A short sale is a process where a homeowner sells a property for an amount which is less than the debt owed to the lender. Typically, in a short sale, the lender is willing to forgive the difference between the sale price of the home and the total debt owed to the lender. Short sales require bank approval because it is the lender that is losing money by receiving less than the total amount of the debt.

The short sale processes can be very complicated, with many moving parts; for this reason, it is important to have good legal representation. The lender is not required to agree to the short sale process and, even when they do, they do not always forgive the deficiency between the sale price and total debt. There could be a scenario where the homeowner sells the property at a short sale and may still owe money on the mortgage to make up the loss to the lender.

A short sale can be a very good option for a homeowner that is not trying to save the home and is able to just walk away. If the homeowner wants to retain the home, then the short sale is not a good option, and other foreclosure defense or loss mitigation options would be more appropriate.

For more information regarding your options, a free  initial consultation is your best next step. Get the information and legal answers you are seeking by calling (312) 600-8815 today.
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