Foreclosure Elgin IL

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A Look at the Fundamentals of Foreclosure Elgin IL in the state of Illinois

Mortgage payments are typically due upon the first day of each month. However, as long as the payment processes by the 15th day of the month it’s usually on time. If the payment does not process until after the 15th day, the bank will usually charge a late fee. Without a doubt, banks make a significant amount of money by charging late fees.

After the account enters into the second month of being late, the mortgage becomes delinquent. The lender must send a notice to the homeowner. The notice advises him or her that there is a 30-day grace period in which to contact a qualified housing counselor. Or, the homeowner can opt for loss mitigation. Before the lender can take legal action against the homeowner, another 30-day grace period is necessary. In the event the homeowner misses a third payment, the lender sends notice that the loan will accelerate. This signals that the lender plans to pursue foreclosure.

If the mortgage remains overdue between 90 and 105 days, the mortgage company stops accepting payments and declares a default. The loan then transfers to the lender’s foreclosure department and usually to their foreclosure lawyer. That law firm might send the homeowner a letter detailing the delinquent payment. Typically they will some time to make the overdue back payments along with extra fees. The mortgage holder or its lawyer also has to serve notification of the rights to reinstate the home loan. They must do this no later than 30 days prior to filing for foreclosure.

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If the homeowner wants to get current on the mortgage, it requires full payment of what is owed. Note that in this situation, repayment plans are not an option. The law firm conducts a title search to decide what parties will act as the defendants in a foreclosure suit. The price of the title search and legal fees will add on to the full amount that’s owed. On account of federal regulations, lenders cannot file for foreclosure until the borrower is at least 120 days behind.

Demand Letters and Breach Letters

Many mortgage agreements in the state Illinois require that mortgage lenders must inform borrowers when loan is in default. They must submit this notice prior to initiation legal action. Known as a demand or breach letter, it must detail several points such as:

-Notification that the home is now in default. The letter must also explain the reasoning for the default.

-The action that could remedy the default.

-A deadline date for solving the default, typically at least 30 days from when the letter is sent.

-Notification that failing to resolve the default shall result in acceleration of the loan. Also, the potential sale of the property.

-If the borrower does not address the default, the lender can file for a foreclosure action in court. The lender usually files the foreclosure action in the county in where the home is located. However, it is possible to file for foreclosures in federal court too.

Loan Mitigation – ASM Law – Call 847-231-3999

Loan mitigation refers to the alternatives to foreclosure. In some circumstances, it might mean that you will be able to keep your home. However, loss mitigation can also mean that you agree with the lender to give up the home. Also, you would avoid additional liability on the home loan. To prevent foreclosure, it’s essential to have loss mitigation plan and work closely with your lender.


Some Illinois courts offer programs to help mortgage lenders and homeowners come to agreement. Mediation can help you and your mortgage lender achieve an agreement regarding foreclosure. Run by a neutral third party, mediation can indeed be effective for exploring loss mitigation options.

A loan modification basically alters the terms of a mortgage loan. The objective is to get an overdue loan current again. This is done by lowering the monthly loan payments so they’re more affordable. Eligibility for receiving a loan modification is dependent upon several factors including:

-The borrower’s income.

-The mortgage lender’s policies.

-When the borrower took out the home loan.

-Which type of home loan is at issue.

Ask your mortgage lender about how you could apply for loan modification. If you choose to pursue it, you’ll want to apply as soon as possible if you’re late on payments. Likewise if you are already in foreclosure. Be sure to maintain accurate records of the information you submit to the mortgage lender while applying for loan modification.

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The state of Illinois is what’s known as a judicial foreclosure state. Essentially, that means that a lender must file and serve a foreclosure lawsuit upon the borrower. Also, to anyone with a lien on the house.

Lien holders would include second mortgages and any tax lien holders like the IRS. After filing of the foreclosure, homeowners usually receive multiple letters from attorneys offering various legal services.

Serving of the summons can occur in a couple ways. One is by personal service on the borrower. The other is via publication if the lender can’t personally serve notice. The borrower gets 30 days to reply after receiving notice of the foreclosure.

If the borrower does not file any response, then the mortgage lender proceeds to a default judgment. In the event the borrower did reply but didn’t raise any objections the lender proceeds with a summary judgment. In either case, the outcome will probably be a foreclosure. However, before the court enters a judgment, the lender must demonstrate they provided realistic assistance to the borrower.

Possible Defenses Against Foreclosure

As a homeowner in the state of Illinois, you do have rights. It’s useful that understand how to utilize them to defend yourself against a foreclosure. In many cases, homeowners cannot afford to pay one lump sum to get current on a late mortgage.

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Filing for Chapter 13 bankruptcy is among the most effective ways of fighting foreclosure. It provides the borrower with a realistic method of paying back the overdue mortgage. The repayment period may be as long as five years. A borrower can file for Chapter 13 at any time following a delinquency right up to the day prior to a judicial sale. Chapter 13 bankruptcy isn’t a realistic option for everyone, though. It’s possible to defend against foreclosure through filing a reply to the lender’s complaint.

Here are few options to consider exploring during a Chapter 13 bankruptcy proceeding:

If you have some equity, you might consider selling your property. Lenders will rarely agree to a deed instead of a foreclosure if there are additional liens upon the property. If you propose this, don’t wait longer than about two weeks to adopt a different plan of action. If the lender does accept, there will usually be a brief amount of time for you to exit the premises.

A short sale happens when selling a property generates less money than the debts secured through liens upon the property. If the lender accepts a short sale, be sure to hire a lawyer.