Foreclosure on a home can seem frightening, especially during a pandemic. At Adam Diamond Law in McHenry Illinois, our team of foreclosure defense attorneys work with clients to present a convincing legal defense that can help get you the time you need to explore your options.
This blog provides some common reasons for foreclosure to help you understand the process and hopefully provide you some peace of mind if you are currently in a situation that might lead to a foreclosure.
What is a Foreclosure?
A foreclosure is what happens when the borrower fails to keep up with their mortgage payments. The goal of a foreclosure is the bank taking possession and ownership of a mortgaged property.
The good news is that several steps the bank goes through before a foreclosure happens in Illinois.
Common Reasons for Foreclosures in Illinois
No one buys property expecting that a foreclosure will happen. The reasons that lead to foreclosure situations are usually life-changing events that one could never predict, such as:
- Adjustable-rate loan adjusting and you are not able to afford the payment
- Credit card debt
- Medically related expenses
- Job loss
- The passing away of a loved one
Unfortunately, these possibility for these reasons all might have accelerated during the pandemic.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act included regulations for lenders to hold off on foreclosures for several months while people get back on their feet financially; this was extended through the latest bill that was passed at the end of December 2020.
In Illinois, foreclosures are judicial, meaning that the lender must go through a court process and be approved by a judge. This means that the lender must file a lawsuit in court.
If you are facing foreclosure, you will be served with a notice (called a Summons) and will have thirty days to answer. The good news is that before this step occurs, many lenders will reach out to you to explore other options.
I’ve Been Issued a Foreclosure… Now What?
There is no “one-size-fits-all” approach to judicial foreclosures, and your best way forward will depend on several circumstantial factors.
Doing nothing, however, is never a good choice.
Knowing more about foreclosures or seeing what your options are is important. Because having someone well-versed in the existing laws is invaluable during a foreclosure, working with an attorney is your best next step.
Contact the office of Adam Diamond for more information
Adam Diamond Law knows that going through a foreclosure can be stressful and unpleasant. To us, nothing is more important than making this process as simple, straightforward and making sure you are in the best possible position throughout this process.
That’s why we work hard and take the time to understand your unique situation. Call 773-217-9623 to get started working together and help ease some of this stress of a foreclosure as soon as possible.