Foreclosures Naperville – ASM Law – Call 847-231-3999
Are you facing foreclosure of your home? Give our law firm a call and speak to a Foreclosures Naperville lawyer for an evaluation of your case to determine if you should fight the proceeding in court. If it’s clear that your bank or loan servicer did not follow state laws, fighting foreclosure may be worth considering.
It may be possible for to stay in your home if the court dismisses or delays the Foreclosures Naperville process.
Typically, the party that starts the foreclosure process must take at least one of the steps listed below. If your loan servicer does not do so, you can contest the foreclosure. When the foreclosure is judicial, the loan servicer or bank in most cases must:
-Send you a “breach letter” that notifies you that Foreclosures Naperville proceedings are starting soon in court. Unless, however, you are able to get current on the loan payments.
-Serve you with a copy of the foreclosure complaint. Also, publish notice of the foreclosure sale in a local news publication for a specific amount of time.
In cases of non-judicial Foreclosures Naperville, they may be a requirement that the bank must:
-Mail you notification that the Foreclosures Naperville process is starting soon. Or mail a notice of default to you. This notice must inform you how long you have to reinstate your mortgage.
-Record a notice of foreclosure at your area land records office.
-Mail you notice that informs you of the date the home is to be sold and publish information regarding the sale.
Each of these notices come with set time limitations along with certain requirements for the content. For example, a notice might have description of the property and the amount remaining on the mortgage. Also, it may list the costs and interest due necessary to reinstate the loan.
Stop Foreclosures Naperville and Keep Your Home – Call ASM Law at 847-231-3999
Generally, courts are likely to respond to significant violations of these requirements. If the loan servicer doesn’t send you proper notice of default, they might need to start all over again.
According to Illinois law, loan servicers must strictly follow the terms of the deed of trust or mortgage. However, if the violation is a minor one, the court might decide to overlook it and allow foreclosure to happen. Most of the time courts will overlook small errors.
To that end, if the party seeking foreclosure makes a mistake that doesn’t really cause much harm, it’s usually not worth contesting it.
Alternatives to Foreclosures Naperville
There are some possible alternatives to foreclosure, like a repayment plan, that homeowners can sometimes reach with their loan servicer. In this course of action, you need to catch up on your overdue payments and then stay current with them. A repayment plan is typically the easiest alternative to reach with your loan servicer.
However, for a repayment plan to succeed your income must be sufficient to make late and current payments. Generally, a mortgage repayment plan is between three to nine months. Loan servicers in most cases don’t agree to longer schedules because it can be very difficult to cover the larger payments.
In some situations, loan servicers will approve a mortgage repayment plan without first asking permission from the lender. The more time it takes the borrower to get current, though, the more likely it will be that the servicer will need to obtain permission.
Reinstating the Loan and Catching Up on Payments
Some state laws allow borrowers the opportunity to reinstate their home loan. Basically, this means getting current on the loan by paying off the overdue amount in a single payment. Alternatively, some mortgage contracts may grant the borrower some extra time to reinstate their loan and stop foreclosure.
In all 50 states, borrowers can redeem their mortgage prior to the foreclosure sale. Some states provide a length of time following the sale date to pay off the mortgage in full.
In this alternative to foreclosure, the lender consents to lower or suspend the mortgage payments for a certain time. The borrower promises to make their full payments at the conclusion of the forbearance period. Also, they must pay an additional amount to make up the late payments.
This can be a good solution when the borrower will be back on their feet financially relatively soon.
With a forbearance agreement the lender consents for the borrower to make lower payments for a length of time. This is in contrast to a repayment plan. However, both alternatives require additional payments later on to get the mortgage current.
Typically, forbearance agreements last for about three to six months. In some cases though, more time may be possible depending upon the mortgage lender’s guidelines and the borrower’s circumstances.
Lowering Payments Through Modification – Foreclosures Naperville
As opposed to repayment plans or forbearance agreements, loan modifications can lower payments for the long term. Frequently, it’s an effective way for the borrower to catch up on their mortgage payments. If you cannot make your mortgage payments, this alternative might be the right approach to retaining your home.
To learn more information about alternatives to Foreclosures Naperville, consult with a lawyer at 847-231-3999.
Some of the reasons borrowers might need to seek a loan modification include:
-Disruption of income due to job loss, serious illness or injury.
-An interest-only loan that causes the principal to attain a preset cap. This increases the mortgage payment to where it becomes unaffordable.
-A reset of interest rates makes the mortgage payment too high.
Here are a few of the ways your loan servicer may modify a loan to lower your payments:
-Lower the interest rate on your mortgage to current rates if it is actually lower than what you’re currently paying.
-Convert the mortgage from variable rate to fixed rate. This helps to lower the payment.
-Extend the loan’s repayment period. For example, extend it to 40 years from 30. This serves to reduce the monthly mortgage payment. However, it delays when the borrower can start to build equity.
-Forbear a portion of balance. This basically means a part of the debt is set aside prior to calculating the borrower’s payment. The borrower usually must repay the set-aside amount through a balloon payment while refinancing or selling their home.
-Re-amortizing the loan. This entails adding the late mortgage payments to the balance and setting a new interest rate for a certain time. Re-amortization might result in a higher payment in the event the interest rate remains the same or goes up.
Talk to a Foreclosures Naperville Lawyer at 847-231-3999
Contact your loan servicer to learn if these loss mitigation options are a possibility for you. Repayment plans, loan modification or forbearance agreements can allow you to stay in your home. For more helpful legal advice about avoiding foreclosure call ASM Law.
Our experienced Foreclosures Naperville lawyers have been helping people in situations just like yours for many years. In our first consultation, we can assess your circumstances and recommend the best way forward for you. Regardless of what causes you to fall behind on your mortgage payments, we’ll fight for your rights.
The expertise of a Foreclosures Naperville lawyer is very valuable when it comes to fighting the process – get started today with a free consultation at 847-231-3999.