Illinois Foreclosure Recovery Information

Guide to Illinois Foreclosure Recovery

How to make it through the Illinois foreclosure process and keep your home
By Emmet McMahan

The easiest way to get Illinois foreclosure help is to contact your lender as soon as you are unable to make your payments on time. Lenders want the borrowers to keep their homes because foreclosure is an expensive process on which most lenders end up losing money.

Lenders therefore have an interest in exploring every possible option in the Illinois foreclosure process, including forbearance, partial claim, payment modification and payment suspension. However, the fewer payments you are behind, the more options that will be open to you.

There are three key actions to take in the Illinois foreclosure recovery process:

Read and respond to any correspondence from your lender. These notices will contain important information on the foreclosure recovery process in Illinois and pending legal action.
Raise money to make a missed payment. You may be able to sell assets such as a second car or jewelry, or a household member could take a second job.
Avoid foreclosure recovery scams. Many companies claim to be able to stop your foreclosure by charging you for information you could get for free. Others will require you to sign over the title to your house.

Action Steps

The best contacts and resources to help you get it done

Know how IL foreclosure will affect you Laws on foreclosure vary considerably by state so you should be familiar with at least a summary of foreclosure laws in Illinois. You should also read your loan documents to know what your lender can do if you can't make your payments.

I recommend: American Foreclosure Specialists provides a description of possible strategies for avoiding a foreclosure on your home. ForeclosureS.com provides the contact information for the Attorney General’s Office in Illinois and links to specific legislation regarding foreclosure in Illinois.

Get assistance with Illinois foreclosure solutions There are housing counselors and online resources available to help you understand your options, assist you in organizing your finances and negotiate with your lender if needed.

I recommend: The Department of Housing and Urban Development provides contact information for approved housing counselors in Illinois that are available for free or very low cost. Visit the National Foundation For Credit Counseling’s Homeowner Crisis Resource Center for information and tools to get started understanding your foreclosure options.

Retain an Illinois foreclosure attorney You may need of the available Illinois foreclosure lawyers to protect your interests, especially if you need to sign documents. If your regular attorney does not handle Illinois foreclosure law, he or she may be able to make a referral.

I recommend: Keil M. Larson in Chicago concentrates on real estate law, including residential foreclosures. Mark J. Rose is an expert in bankruptcy law and advises clients on real estate transactions.

Tips & Tactics

Helpful advice for making the most of this Guide

Consider refinancing in your Illinois foreclosure process if you have some equity in your home. You will normally need at least 10% equity for a reasonable chance at refinancing and your odds get better with more equity. However, you don't want to make the common mistake of simply taking out a new loan that will be just as difficult to repay as the original mortgage.
Ask to speak with a manager when you contact your mortgage company as part of your Illinois foreclosure recovery process. You will need to have some basic information ready, including your loan number, household expenses and recent pay stubs. Be prepared to provide a brief, honest account of your financial circumstances and take notes, especially the contact information of the person to whom you are speaking.

Illinois Foreclosure Recovery

Guide to Illinois Foreclosure Recovery

Action Steps

Tips & Tactics

How-To Guide from WORK.COM

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