Facing foreclosure is scary, and it can feel like the whole world is teaming up against you.
But don’t worry — it is possible to fight a foreclosure with a qualified and experienced foreclosure defense attorney. The litigation team at Adam Diamond Law is ready to work with you to try to get you the valuable time you need to explore your options.
So, what should you expect during the foreclosure process, and what rights do you have if you are going through it?
Foreclosure Basic Rights
Most people, when purchasing a home, take out a loan from a bank or a mortgage company. As part of the deal, they have to follow a payment plan and agree that the lender can sell their home if they fail to make the agreed-upon payments.
However, there are some steps that the lender must go through when foreclosing. Additionally, there are rights that you have, as the homeowner, to help you through this process.
1. Notice of Foreclosure
No matter what state you own property in, you are entitled to know when a foreclosure has been filed on your home. Basically there are two types of foreclosures:
- Judicial
- Nonjudicial
The most common type of foreclosure procedure is judicial (meaning the court is involved). Illinois is a judicial foreclosure state with a court process that must be observed in residential foreclosures. When the bank or lender files a foreclosure complaint in court, they must serve you with a summons and a copy of the foreclosure complaint to alert you of the foreclosure. In nonjudicial foreclosures, there may or may not be court involvement and the laws vary from state to state. Some states require only a posting and publication in the local newspaper, while others require that the borrower be provided with a notice of default and/or notice of sale alerting the borrower as to when the sale or auction will take place.
2. Right to Reinstate or Redeem
Many states allow the homeowner to retain ownership of the house by paying all the missed payments and late fees before a certain deadline. This is the right to reinstate and must take place prior to a foreclosure sale. In Illinois, the right to reinstate is limited so you should discuss your case with a foreclosure defense lawyer as early in the process as possible if you are interested in reinstating your mortgage.
Redeeming a house occurs before the sale, as well, although some states allow redemption even after the sale. To redeem the loan, the homeowner needs to pay the full amount, in addition to fees and expenses. In cases where someone else purchased the house at the foreclosure sale, redeeming your house may require reimbursing the new purchaser, as well. In Illinois, there are limits to the right to redemption which is why you should contact a lawyer right away if you are interested in exploring your right to deem.
3. Loss Mitigation Rights
The company who handles your loan account typically MUST at least make an attempt to contact you after you miss a payment about loss mitigation. Loss mitigation options can include:
- loan modification;
- forbearance agreement;
- short sale; or
- deed in lieu of foreclosure.
The loan company typically must provide these options to you after you have missed one or more payments and assign someone to help you through it. (In some states, this is referred to as foreclosure mediation.)
4. Breach Letter
Depending on the terms of your loan, you may also be entitled to receive a “breach letter” that informs you that your loan is in default and that the lender intends to accelerate the loan and proceed with a foreclosure. This notice contains important details and deadlines that must be met to fix (cure) the default and avoid foreclosure.
5. Defending the Foreclosure in Court to Reach Your Goals
Lastly, you have the option to challenge the foreclosure in court. If your lender or loan servicer won’t work with you, then it is often necessary to hire a foreclosure defense lawyer to assist you in achieving the outcome you want. That’s where the litigation team at Adam Diamond Law comes in.
Facing Foreclosure? Contact Adam Diamond Law
The legal team at Adam Diamond Law presents persuasive legal arguments based on the latest statutes and up-to-date case law designed to defend you in foreclosure and keep you in your home. Get in touch today to get started.
DISCLAIMER: This article and any information contained herein is solely for informational purposes and is only applicable in the state of Illinois. While it is important that you educate yourself, nothing herein should be construed as legal advice or create an attorney-client relationship. For specific questions, I always urge you to contact a local attorney for advice pertaining to your specific legal needs.
