ASM Law – Call 847-231-3999 – Stop Foreclosures Elgin IL
A short sale is an effective method of selling real estate in Illinois. Also, it’s possible to combine a short sale with bankruptcy to maximum results for if you are surrendering a property. On this post, we present a few answers to FAQs about a short sale in Illinois.
-What’s a short sale? It’s very similar to a conventional real estate sale. However, the exception is that the property sells for a lower amount than the balance remaining on your mortgage.
-What is the reason people choose a short sale? The main reason is because a short sale discharges the mortgage debt. Even If you’ve already discharged your debt via bankruptcy, a short sale is still beneficial.
It can be the most effective way to remove your name from the title. In addition, after participating in a short sale, you might receive a financial incentive at the closing.
-So why not just allow the property to proceed through the foreclosure process?
In general, a foreclosure takes a lot more time than a short sale. During a foreclosure, you still have responsibility to take care of the property. Additionally, you’ll still be liable as owner of the property.
If the property is a condominium, you’re still responsible for assessments. Foreclosures Elgin IL can result in more damage to your credit score. After the closing of a short sale, you’re free and clear of any more responsibility for the property.
-Does a short sale affect my credit score? A short sale will impact how the credit bureaus view your mortgage accounts. Usually, a foreclosure reports as a charge-offs, which is a the worst declaration for credit. A short sale, on the other hand, is reported as “paid” for “less than full balance.”
Consult with a Lawyer if You’re Facing Foreclosures Elgin IL – 847-231-3999
-Is there tax on the cancellation of a mortgage following a short sale? If you receive a bankruptcy discharge, there is no tax on your mortgage cancellation if you do a short sale. If you did not get a bankruptcy discharge, talk to a tax advisor. There might be a loophole that helps prevent tax on your debt cancellation.
-Can I buy another property if I’ve done a short sale? Yes. The wait period is typically as short as two years for a standard loan and three years for FHA loans. The waiting period can be a lot longer if you let your property go into Foreclosures Elgin IL.
Foreclosure proceedings start when a lender files a complaint. The borrower receives the complaint and summons. In addition, the borrower receives a notice of their rights during the foreclosure. In most situations, the borrower must file a response within 30 days. Failure to do so results in what’s known as a default judgment in favor of the lender.
If you receive notice of a foreclosure proceeding against you, the attorneys ASM Law can help you draft a response. If applicable, you do have an opportunity to offer a defense. Depending upon the particulars of the case, the court might enter a summary judgment for the lender. Alternatively, the court might order a trial. In the event the court decides in favor of the lender, then a foreclosure judgment is proceeds against the borrower.
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In the state of Illinois, there is a period when you have the right to pay the full debt. This allows you to reclaim the property even following a foreclosure judgment. During this redemption period, the property may not be sold. The redemption period for a residential property ends three months from the date of the foreclosure. Or, it ends seven months after the lender serves the initial complaint, whichever one is later.
Sale and Eviction
Prior to selling a foreclosed home, a notice of the foreclosure sale must appear in a local news publication. It must appear for a minimum of three weeks consecutively. Additionally, the borrower must receive notice of the foreclosure sale at least ten days before the sale occurs.
At the sale, the property can either sell to the highest bidder or it reverts back to the lender. If your existing debt is more than the foreclosure selling price, the lender might try to collect that difference. This is done through a deficiency judgment.
If you’re still residing in the home at the time of the foreclosure sale, the new homeowner might offer a cash-for-keys deal. Or, the court order approving the sale typically includes a provision giving possession to the new owner within 30 days.
Fighting Foreclosure – ASM Law
-Do not overlook the problem. If you’re falling behind on paying your mortgage by even one day, you should not ignore your situation. An overdue payment will likely not be too problematic if you send the payment before your grace period ends. However, multiple missing payments are significantly more serious. With each missing payment you are another step closer to a foreclosure proceeding.
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At ASM Law, we understand that ignoring an overdue mortgage will result in foreclosure. You’ll most likely lose your house if you don’t act promptly to resolve the situation. If you are not certain what to do, our lawyers can explain the options that might be available. If you are receive letters about foreclosure and you are not able to get your mortgage current, call us today.
There are options for preventing foreclosure that depend upon several factors, which includes the value of your residence. Additional factors are what you still owe on your mortgage and your general financial situation. In many cases, you might be able to get current on your mortgage through a payment shedule with your lender. With our assistance, your lender might also agree to modifying the terms of your loan. A modification would result in more affordable monthly mortgage payments through lower interest rates. Other changes often include a longer repayment schedule or moving the principal to the end of the mortgage loan.
A short sale might also be a possibility for preventing foreclosure. With a short sale, your residence sells for less than what you owe on it. The money from the sale goes to the lender to settle a part of your debt. It is up to your lender to accept the proceeds and settle your remaining debt or still hold you liable for remaining deficiencies. ASM Law can negotiate with your lender if you choose a short sale.
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Bankruptcy Protection
If you are carrying other debts in addition to your mortgage, a bankruptcy filing might keep you safe from foreclosure. Depending upon how much equity you have in the home, you might be eligible to file for Chapter 7 bankruptcy. However, most Illinois residents who want to retain their home choose a Chapter 13 bankruptcy. In this case you’ll need to produce a plan to pay your debts, which includes your home loan. Upon conclusion of your bankruptcy proceeding, you’ll be able to stay in your home. (So long as you keep making your payments according to schedule.)