Foreclosure Lawyer Aurora IL – For any homeowner in the state of Illinois the possibility of losing their home is no doubt a scary one. However, there are ways to fight foreclosure and steps homeowners can take during each step of the process. At ASM Law, we help clients who are facing foreclosure by protecting their best interests and fighting for their legal rights. On this post, we’ll present some helpful information about foreclosure in Illinois and how our law firm can help you.
Mortgage Loans in the State of Illinois
When prospective homeowners take out a loan to buy a house, they usually a promissory note and a mortgage. A promissory note is simply a form of IOU. It contains the promise to pay back the loan. Additionally, it states the repayment terms.
In the event a homeowner misses a payment, most loans feature a grace period of ten to 15 days. After that time period passes, the loan servicer assesses a late fee. Generally, late fees are five percent of the
overdue loan payment of the principal and interest. To learn the late fee amounts and grace period for your loan, read through the promissory note. Also, you may find this information on your monthly loan statement.
Falling Behind on Payments
If a homeowner misses a payment, the servicer usually sends a letter requesting the payments. The homeowner should not ignore the letters or phone calls. They present an opportunity to review the options available for mitigating losses. For example, the homeowner can inquire about a loan modification or alternative payment plan which will help prevent foreclosure.
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More About Late Fees
In the event you’re behind on your mortgage loan payments, many loan contracts enable the lender to apply late fees. In addition, they may be able to add property inspections, foreclosure fees and other fees onto your account. The loan servicer is the entity that manages your loan on the behalf of the lender. It’s the servicer who actually adds the fees to your account.
At soon as a mortgage payment becomes late, you’ll probably receive a late fee when the grace period expires. Typically, home loan contracts set a grace period of ten to 15 days. After that time frame,
the loan servicer will usually assess the late payment fee. Servicers may only assess late payment in the amount that the mortgage documents state. The late fee provision is often found within the promissory note.
In most cases, the late fee is four or five percent of the late payment. However, state law may restrict the amount of late fees the servicer can apply. If the state limits are less than what the loan documents permit, it will usually override it. Without a doubt, late payment fees can rapidly accumulate. Consequently, they can add hundreds to what you already owe.
The Review Period for Foreclosure Loss Mitigation in Illinois – Foreclosure Lawyer Aurora IL
According to federal law, loan servicers generally must wait until a borrower is 120 days overdue on their loan. At that point, the servicer typically files the case in an Illinois court to begin foreclosure. It’s during this waiting period when borrowers should explore their opportunities for preventing foreclosure.
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Here in the state of Illinois, foreclosure processes are judicial. Basically, that means the lender must file a lawsuit in a state court. The borrower receives the complaint along with a summons. The summons usually grants 30 days for the borrower to file a response. If the borrower does not respond within the set time period, the lender can obtain a default judgment from the state court. However, if the borrower does file a reply, the lender cannot obtain a default judgment. Rather, the lender may either file a motion for a summary judgment or proceed to a trial. If the court grants summary judgment in favor of the lender the court orders the foreclosure sale. Likewise, if the borrower loses at trial.
Reinstatement Before Foreclosure Sale
A reinstatement occurs if the borrower repays the overdue amounts, along with late fees to get their loan current. State law provides that a borrower can reinstate their loan up to 90 days after receiving a summons. Nevertheless, many loan servicers permit the borrower to proceed with reinstatement at any point before a sale.
A redemption period is the period during when a borrower in foreclosure can pay the full debt.
The repayment should include the principal with extra fees and interest, which enables the borrower
to reclaim the home. In Illinois, foreclosure sales cannot proceed until the redemption period expires.
The redemption period for residential property expires at either:
-Seven months from when the lender serves the complaint or;
-Three months from the date of judgement.
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However, if the borrower abandons the property, the redemption period may reduce to 30 days from the date of judgment. Additionally, state law provides for a 30-day special right to redeem after confirmation of the date of sale if:
-The buyer at the foreclosure sale is the mortgage holder and the price is lower less than the full debt.
Note that total debt is the judgement amount and costs at the date of redemption.
Notice of Foreclosure Sale
Notice of foreclosure sales must appear in a newspaper for a minimum of three weeks, once per week, consecutively. The first notice should publish no more than 45 days before the sale. The last notice must be published at least seven days before the sale. In addition, the homeowner must receive notice via mail a minimum of ten days prior to the sale.
At a foreclosure sale in the state of Illinois, the property sells to the highest 3rd-party bidder. Or,
the property reverts again to the lender.
In foreclosure sales, the borrower’s debt on occasion exceeds the property’s sale price. The difference between the two figures is known as a “deficiency.” Lenders In some states may seek a deficiency judgment against the borrower in order to recover that deficiency. After obtaining a deficiency judgment, the lender can collect the funds from the borrower.
In Illinois, lenders can get a deficiency judgment as a part of a foreclosure action. However, only after serving the borrower with a foreclosure lawsuit.
Eviction After Foreclosure
After a foreclosure sale concludes, the borrower must vacate the residential property. Generally, the new owners will offer a cash for the keys deal or proceed with eviction. In most instances the lender may take over possession 30 days after entering an order.
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While we present an overview of foreclosures in Illinois here, be aware that both state and federal laws are complex. To find out more about foreclosure laws or whether you may have defenses against a foreclosure, call ASM Law. An experienced Foreclosure Lawyer Elgin IL can help you get the best possible outcome for your situation. If you do have a realistic defense against foreclosure, the lender might restart the process. Or, you may establish some leverage in reaching an alternative that enables you to remain in your home.