A home is the largest purchase most Illinois residents ever make. If you struggle financially and your lender has threatened foreclosure or has started the foreclosure process, contact Kevin Benjamin for Chicago foreclosure solutions. He can protect your rights and help you understand foreclosure proceedings in Illinois.
Falling Behind on Mortgage Payments
As an Illinois homeowner, you likely signed two critical documents when you closed on your new home. The first is a promissory note – Your agreement to the loan’s repayment terms. The second is your mortgage. It gives the lender the right to foreclose on and sell your home to recover the loan amount if you fail to make payments.
Missing Payments Before the Foreclosure Process
Paying late or missing an occasional mortgage payment is not uncommon. Your lender may offer a 15-day grace period and assess late fees for any payment that comes in later than that. However, the mortgage holder may consider your loan in default if you are 90 days or more behind and contact you with loss mitigation options (foreclosure alternatives). If you are delinquent for 120 days or more, the lender has the right to start foreclosure proceedings in court.
Your Rights Before the Illinois Foreclosure Process Starts
Federal and state statutes regulate the foreclosure procedures that mortgage servicers must follow. If the property is your primary residence, Illinois mortgage agreement lenders must contact or attempt to contact you before taking legal action.
Also known as a demand letter, it must include several pieces of information, such as:
- Notification that your loan is in default
- Action that will resolve the default
- A deadline for that action
- Consequences of the failure to resolve the default
Preforeclosure is the period after you miss payments but before the foreclosure process begins. The servicer has the right to assess late and missed payment fees. Your promissory note and the mortgage statement each month typically detail the fees and amounts.
If you cannot bring your loan payments current, you have the right to apply for loss mitigation. These are options that may help you avoid foreclosure. Your alternatives may include:
- A short-sale
- Deed-in-lieu of foreclosure
- Repayment Plan
- Permanent Hardship
- Loan modification
Whether you ask for the information or not, lenders must notify you of your loss mitigation options. They must also contact you in writing no later than 45 days after a missed payment.
Timeline for the Foreclosure Process
Mortgage lenders generally start foreclosure proceedings 3 to 6 months after your first missed payment. However, the process can take up to 15 months. According to Mid Central Community Action, if you do not act, the timeline for the typical foreclosure might look like this:
What it means
30 to 60 days late
You miss your second payment, and your lender calls
This is an opportunity to work with your lender for options to stay out of foreclosure
60-120 days late
You miss your third payment. The lender sends a notice of intent
The lender’s attorney is starting the foreclosure process, and it becomes a matter of public record
120-175 days late
A sheriff or process server personally delivers a summons
If you do not answer the door, a public listing will be posted in the newspaper
Be wary of scams. You will begin to receive solicitations in the mail, on the phone, and in person with offers of “help.” These offers are generally “too-good-to-be-true” and may lead you further into trouble
60 days after being served
A default motion is filed, and a court judgment may be entered
If you do not answer the summons, the process moves forward.
90 days after being served
Your reinstatement right expires 90 days after being served
If you haven’t paid fees and the amount due, foreclosure begins
7 months after being served (or 3 months after judgment)
Your right to redemption expires.
The house will be sold at a sheriff’s foreclosure sale
15 days after the sale
An order of eviction is postponed for 30 days
After your house is sold, you have less than two months to move out
30 days after the sale
The sheriff delivers an order of eviction
You may be forcibly removed from your home
Each action has a deadline for you to act. An experienced foreclosure attorney at Benjamin Law can help you understand how to stop the process and avoid foreclosure.
Alternatives to the Foreclosure Process
The foreclosure alternative that works best for you depends on a variety of factors, such as:
- Your circumstances
- The lender
- If the loan is through a federal program, such as FHA
Lenders must file a judicial lawsuit if they want to foreclose in Chicago, IL. You have the right to respond and go to court.
Avoid the Foreclosure Process - Chicago Foreclosure Solutions
The laws related to foreclosure are complex and change often. An experienced foreclosure attorney is up-to-date on the latest legislation and understands foreclosure alternatives, including bankruptcy, can financially affect you.
If you have received notification of default from your mortgage lender, don’t avoid dealing with it. Contact us today. We can protect your rights and ensure you understand your options. At Benjamin Law, we can determine if you can avoid foreclosure and stay in your home.