Oftentimes people think there is nothing they can do after being served with a foreclosure notice but this is not true. There are several options and paths to take after this occurs. The notice is the bank telling you that they plan to repossess your house; however, this process can take at least 6 months and there are ways to prevent it.
Some of the choices that you have after receiving a foreclosure notice include:
- Paying the owed balance which would be ideal but is not always an option
- Hire a Chicago foreclosure attorney who can fight to increase the time before foreclosure
- Short sale your property which is better for your credit score
- Deed the property back to the bank
- Doing nothing is an option as well but is not wise because the house will get foreclosed
Taking action is necessary, sitting and not looking for help will not be beneficial in the long run. There is a possibility to negotiate with the lender of the property even after being served the notice of foreclosure. Lenders are generally willing to compromise and provide you with options in which you can pay the mortgage back in some way. Writing a letter to the lender is suggested because communication should be in writing and it is a formal way of telling them about your hardship.
The lender can make several decisions, such as:
- Offering forbearance: you would make small payments or no payments for a certain amount of time. Generally 6 months in order to help you fix the financial hardship.
- Short sale: homeowner can ask for a short sale to be done by the lender. Oftentimes the lender agrees and the property will be sold for a smaller value than the amount that the loan is worth.
- Lender does not have to agree to either of these things
There are many ways to go about keeping your home and the first step is to contact an attorney who deals with foreclosure cases, and discuss your case before the response deadline on your notice. You will generally be given 20 days so do not wait. Seek experienced assistance as soon as possible to increase the chances that you will be able to keep your home.
Oftentimes people think there are not any options for homeowners that are struggling to pay for their property but there are. A skilled lawyer may be able to negotiate and agree on a loan modification or different type of payment plan to repay the money owed on the property. This is a good option because you not only get to keep your home but you also pay lower payments on it in the future. There are several different options after you are served a foreclosure notice. Call a Chicago bankruptcy attorney from our firm today to schedule a free consultation and learn more about the choices that you have.