Foreclosure is a legally complex process and for most people a moment of mental instability. Most of us do not really know what this actually is until they receive a letter for the execution of foreclosure for a due debt. Here is a brief explanation and how to stop foreclosure in Illinois.
What is foreclosure
Technically any credit, all the money you take from the bank for you to cover any expenses is a loan. It does not matter if you take the loan to pay for education, housing, or a new vehicle. Also, it does not matter if it is a big or a minimal loan, it is still a legally stated loan. As already mentioned, in most cases, the bank is the lender.
Usually, when signing a contract for taking money for your lender, the guarantee they get is your every possession. In most cases, this is your property, aka your house. If you let couple of payments let unpaid, this means that in a very short time you will receive an announcement letter for foreclosure. As the only guarantee you have left is the house, foreclosure means taking away your house. The bank sells it on a bid with the price of the loan left to be paid and gets their money back and somebody gets a cheaper house.
This is the point when most people panic. However, this shall be the moment when you contact a specialized lawyer immediately to help you stop the foreclosure procedures. Here are the things your lawyer will help you do so that you save your home.
Pay all the money in full immediately
This is the easiest and fastest way to deal with the situation. If there is any reason that you have not paid what you had to at the right time, but you still have the money, or you can take the money from a friend or a different institution, depending on the amount, you can pay all the money at once. Showing the court that you are completely able to cover all the loans at once is the best way to go. This will surely stop the procedure of foreclosing immediately.
Chapter 7 and Chapter 13
These are long and exhausting procedures. They literally consist of collecting lists of all your loans, all the income sources, and all the expenses that you have so that you can ‘apply’ to the court for a special repayment plan.
Request some contract changes
If the reason for which you have not recently repaid a loan is that the situation in your life changed, the moment you know it, or the very moment when you receive the foreclosure announcement letter, you have to see your banking specialist immediately. This includes any income or expenses changes, or any consequences from the Covid-19 financial crisis.
Dealing with foreclosure may be a real challenge, but it is not impossible to get out of this terrifying situation. Find a lawyer, and they will help you save your home and gain stability over time.