Where a foreclosure picks up now is going to depend on every individual’s case. It will take off right where it left off. If you were the day before a sale date, you’re going to have a sale date reset. It’s not going to be that fast, but it’s going to happen quickly. If you are a person who just got served, then they’re going to act like you just got served again and they’re going to set a status date. It is just going to start where it left off. Most of these foreclosure cases are active.
Do Banks And Other Lenders Need To Restart Foreclosure Proceedings For People Who Were In The Middle Of A Foreclosure?
No, lenders do not need to restart foreclosure proceedings for people who were in the middle of the foreclosure process, they start over where they left off. The only time they would have to start over is if you went into a modification agreement, it was finalized, and then you went back into default, then they would have to start a new foreclosure case.
Should Homeowners Consider A Short Sale Over Restructuring Their Loan Or Foreclosing On Their Property?
It’s very individualized. Now might be the right time for some and not for others. It just really depends on the whole picture. If the only problem you have is you are behind on your mortgage and you want to move, then a short sale might be the right idea. However, a short sale is never a good idea if you want to stay in your home.
There are other options you should try first, like a modification or possibly filing a Chapter 13 Bankruptcy. You don’t want to sell your house, take a hit, walk away, and then six months later find out you have the job of a lifetime and it’s too late! Don’t ever rush into these are big decisions that could affect you for a very long time. You do the math, look at what you want in your future, and then make a calculated decision. Try to keep your heart out of it because if we keep our heart in it, sometimes we make impulsive decisions that we will regret.
Should I Meet With A Bankruptcy Attorney Now Before My Foreclosure Proceedings Start?
Bankruptcy is a big deal; each case will be different. Once you file, even if you change your mind, you can’t always get rid of it, and it certainly will stay on your credit report whether you change your mind or not. If you’re talking to a bankruptcy attorney who tells you that your only option is to file bankruptcy, talk to a second bankruptcy attorney. I’ve never had a person come into the office where the only option is bankruptcy. It might be the best option for a particular circumstance, but never the only option. You want to make sure you check all your options and find the one that fits best your life.
Going in to talk to a bankruptcy attorney before a foreclosure is filed isn’t necessary, but it might be a good way to plan out what your options are, such as filing chapter 13, chapter 7, or pursuing a loan modification.
With a modification, sometimes they make a 30-year mortgage a 40-year mortgage, lower your interest rate, or reduce your principal balance. Every lender is different, but there are actions you can take to try to get yourself a good modification by following the federal rules to keep you in your home. It’s not a guarantee, but there are at least some regulations to utilize to try to force lenders to do it correctly.
You can also consider selling your house at a short sale—or regular sale if you have equity. With a short sale, you put your house on the market, see how much you can get for it and then if it’s less than you owe, negotiate with the bank. Sometimes you can also collect cash for keys, where you sign the house over to the mortgage company and they will give you money to help you move. It’s usually not a high sum, as much as $10,000, but more often around $1,000. The transaction helps homeowners relocate while helping the mortgage company because it saves them the cost of closing fees if you just give them the deed.
What Are Alternative Options To Filing Bankruptcy For Homeowners Now Facing Foreclosure?
If you are facing foreclosure, you can defend against foreclosure if you believe your mortgage company has acted improperly; other defenses include:
- short sale,
- deed in lieu of foreclosure, and
- modification.
Additional Information On Foreclosure Situations In Illinois
There are federal agencies, such as the Department of Housing and Urban Development (HUD) and the Consumer Financial Protection Bureau (CFPB), trying to come up with ways of helping homeowners, but nothing new is in the works at this time. As we are getting into this new wave of COVID-19 and more people are getting sick, there is always a chance that Congress will take new action to help homeowners in difficult positions due to the economy. We’ll have to wait and see.
For more information on the Current Foreclosure Situation in Illinois, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (847) 440-5998 today.
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