How to Keep Your Home When Foreclosure Seems Inevitable

 Posted on October 16, 2024 in Real Estate

As of March, 2024, the state of Illinois had the highest home foreclosure rate in the United States, with foreclosures affecting one in every 2,548 homes.  In the same month, the number of homes with foreclosure filings across the entire nation was 32,878 – a drop of 1 percent from the previous month, and down 10 percent from the same point the previous year. The prospect of losing your home is, understandably, terrifying. Our homes are often a haven from a world that can be tough to navigate at times. If you have children, the thought of losing your home is even more untenable.

The rules and laws surrounding foreclosure vary significantly from one state to the next. Foreclosure is a specific type of civil litigation. In some states, foreclosure can happen quickly, while the process is fairly lengthy in others.  If you are behind on your mortgage payments and fear your home is about to be foreclosed on, your first priority should be to contact an Oak Park, IL foreclosure defense attorney from the Law Office of Vincent C. Machroli, P.C..  

What Is the Process and Timeline for an Illinois Foreclosure?

The time it takes from missing mortgage payments to when your home is foreclosed on and sold can vary significantly from case to case. The length of time also depends on whether you contest the foreclosure. If you do not contest the foreclosure, it can take from a few months to as long as 15 months before the property is no longer yours. Once you are 30-60 days late on your mortgage payments, you will have likely received contact from your lender.

An automatic loan default occurs when a mortgage payment is between 60 and 120 days late. At 90-120 days, your lender will send a breach letter. Once your mortgage is between 120 and 175 days late, you will receive a foreclosure summons. If you do not respond to the summons when your mortgage is 230 days late, the court will enter a default judgment, and at 260 days late, your right to reinstate the loan expires.

Your right to redemption expires seven months after being served, or three months after judgment. Ten days before the sale of your home, you will receive a written notice, and 15 days after the sale of your home, you will receive an eviction notice. You could be forcibly evicted if you have not vacated the home 30 days after the sale.  

How Can I Avoid Foreclosure?

You should immediately speak to a knowledgeable civil litigation attorney skilled in Illinois foreclosures to avoid being forced out of your home. After discussing the issue, your attorney may recommend one of several options. If you can make up your missed mortgage payments, you may be able to negotiate with your lender to resume payments and stay in your home.

If you are unable to pay the past-due amount in full all at one time, ask about a payment plan to get you back on track. Your lender might also consider a loan modification. The lender might choose to forgive the past due amount, or add it to the end of your mortgage term. You could consider seeking relief through local, state, or federal government programs like the CARES Act, although such a program may or may not be available.

You can choose to file a court action against your lender to stop foreclosure, but this approach can be both time-consuming and expensive. If bankruptcy is an option for you, especially a Chapter 13 bankruptcy, you might consider doing it now to halt the foreclosure proceedings. If you do not want to do anything listed above, you can choose to turn your home over to the lender and walk away from the mortgage.

Contact a Hillside, IL Foreclosure Defense Attorney

Attorney Vincent C. Machroli has provided successful civil litigation defense for his clients for over 36 years. With extensive experience and a detail-oriented, responsive office, we offer highly personalized service to each client. Having an Oak Park, IL civil litigation lawyer from the Law Office of Vincent C. Machroli, P.C. can help ensure that your foreclosure matter has the best possible outcome for you. Call 708-449-7404 to schedule your free consultation.