Unexpected events in an Illinois homeowner’s life may make it difficult or impossible to stay current on a home loan. These events may include a job loss, a sudden illness or a significant home repair bill. Those who fail to make even a single mortgage payment could lose their homes to foreclosure. However, there may be ways to postpone or prevent a foreclosure from actually taking place.
For instance, it may be possible for homeowners to call their lenders and ask for alternate payment arrangements. Generally speaking, lenders would rather wait a few extra weeks or months for their money as opposed to going through the process of repossessing a home. Alternate payment arrangements could include adding a missed payment to the back of a loan or forgiving a payment altogether. The company that services a mortgage loan may also agree to freeze or reduce the interest rate on the loan.
Those who have positive equity in their homes have the right to sell their properties before they are repossessed. Individuals who have negative equity in their homes may be able to engage in a short sale. While this is similar to a foreclosure, it may not have as severe of an impact on a person’s credit score or ability to buy a home in the future.
An attorney may be able to help those who are facing the prospect of having their homes repossessed by their lenders. Often, foreclosures may be stopped or postponed by asserting that loan providers violated the rights of their customers. An attorney experienced in foreclosures (both prosecution and defense) might also advise an individual to either sell his or her home or help negotiate the terms of a short sale. In some cases, legal counsel may work to negotiate new loan terms on behalf of a homeowner.