Getting closer to foreclosure?
Foreclosure is a legal process through which a mortgage lender obtains a termination of mortgage
borrower’s equitable right of redemption either by court order or by operation of law. Considering the
tough economic conditions prevalent nowadays, lots of people are running behind on their mortgage
payments. This also means that a lot of lenders are starting foreclosure procedures and a lot of
borrowers are trying to Stop Foreclosure. It is not an easy process to say the least. Each state may have
its own laws regarding foreclosure and ways to Stop Foreclosure. Residents of Illinois have four options
to Stop Foreclosure, ironically, three of them require money and it is obvious that the reason for being
behind in payments must be lack of money.
First option to Stop Foreclosure is to catch up on the missed payments. Talking to lender on how to go
about this is a good first step. This process is also known as reinstatement. Second option to Stop
Foreclosure is payment of balance of mortgage, the process is also known as redemption. Option
number three to Stop Foreclosure is to sell your house before completion of foreclosure process to pay
off the remaining debt; this option is better than foreclosed sale as that generally fetches comparatively
lot less in terms of value. And finally, option number four to Stop Foreclosure is to file for bankruptcy.
This delays the process of foreclosure and this timeframe can be used as an opportunity to get the
finances in order and to pay off mortgage amount.
If a person is at the risk of foreclosure, it is very important to know your options and to understand the
programs available to help you. In Illinois, foreclosure is a 9 month long process. However, after 90 days
the lender turns over the delinquent loan to attorneys and that is when the charges really start piling up.
For a person hoping to Stop Foreclosure, it is extremely important to not ignore letters from lender
during first 3 months, which may actually contain guidelines on process to Stop Foreclosure. It is
important to contact HUD certified counselors, financers and realtors to help Stop Foreclosure process.
At the same time it is very important to beware of all the scams going around which claim that they can
Stop Foreclosure process. As difficult as it is, it is important to Stop Foreclosure; the reason being that
once foreclosure process is complete it stays on your credit report for 7 years, making it virtually
impossible to get any form of credit.