The economic downturn could force many homeowners into foreclosure as many people continue to struggle with inflation and the impacts of the pandemic. Some homeowners may be able to fall back on equity or sell their homes and pay off their mortgages. However, we have already seen a decline in the sale of existing homes for nine consecutive months. In just the third quarter of 2022, there were nearly 93,000 foreclosure filings and parts of Illinois had some of the greatest numbers of foreclosures filed.
Foreclosure judgments in 2023 could increase and if you do not take action your home could slip away. A late payment made during the grace period is not cause for concern. But repeated missed payments are more serious and bring you a step closer to foreclosure.
Two Options to Avoid Foreclosure
If you are behind on your mortgage you cannot afford to ignore the situation. It would be a good idea to consider the assistance of real estate attorney to help you with these two possible options to avoid foreclosure:
Loan Modification – You should figure out the value of your home, how much you owe, and your financial situation. With the help of your real estate attorney, you may be able to modify the terms of your loan which could include lower interest rates. That would be beneficial to you in the way of a lower monthly payment.
Short Sale – In a short sale, your home may be sold for less than what you owe on it, thereby avoiding foreclosure. The money from the sale would then go to the lender to pay off a portion of the mortgage debt. It is, however, ultimately up to the lender to decide if they will accept the proceeds of the sale to settle the entire mortgage debt or if you will still be responsible for the remainder of the money owed.
Mortgage Assistance Program
The Illinois Housing Development Authority reopened a mortgage assistance program to help homeowners with up to $30,000 in mortgage aid. The program can help pay overdue mortgage payments and up to 90 days of future payments. In order to qualify, you must have experienced a financial hardship related to the pandemic, must be living in the home, and should be at least 30 days behind in your payments. A household income at or below 150 percent of the median income is also a requirement.
Contact a Lake County Foreclosure Lawyer
If a lender is threatening foreclosure and you do not have the money to bring your mortgage up to date, contact Newland & Newland, LLP right away. Ignoring a delinquent mortgage will lead to foreclosure. A Waukegan foreclosure attorney can go over the options that may be available to you. Call 847-549-0000 for a free consultation.