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refinance attorney needed Should I hire an Attorney to Represent me in a Refinance?

Davenport Bank Building Davenport Iowa

Davenport Bank Building Davenport Iowa

refinance attorney needed Should I hire an Attorney to Represent me in a Refinance?

  • Hire Your Refinance Attorney Here. Fill Out Form for Immediate Response




Yes and No.

Yes, it is always good to have attorney counseling you on the meaning of any legal document you are signing.  No, it is not always necessary to have an attorney to sign standardized bank documents in a refinance unless you want to fully understand the refinance and make sure that you are getting what you bargained for.

Bottom line – Having an attorney at a refinance closing is a really great way to make sure that the interest rate your thought you were getting is right, that it is either fixed or is adjustable in the way you understood it.  It is also important to understand the rather large fees charged (and buried) in a refinance.  On average, a refinance costs $5000 in bank fees.  Bottom line – $250 for an hour appearance fee is a drop in the bucket compared to these fees and will help you feel comfortable with what you are signing.

Hiring the attorney, the problem is how to hire and attorney who can make these sorts of appearances profitable and desirable to do and also be qualified.  Usually an attorney belonging the Illinois Real Estate Lawyers Association (IRELA) www.irela.org will be competent in Illinois to represent you and usually has flat rates that are reasonable.

If you are hiring an attorney generically, try these tried and true questions and technics:

1.  Find three attorneys that serve the geographical area you need service in
2.  Confirm that the attorneys speak your language
3.  Call each attorney and ask three questions:

    • How long have you been in practice in Illinois
    • How many residential real estate closings have you done on average over the last five years
    • What is your flat rate for representation at a refinance including any trip charge

Based on your discussed with the attorney, you should be looking for the following answers:

  1. I have practiced in Illinois for over 5 years
  2. I do at least 10 residential real estate closings per year and it is one the core concentration areas of my practice.
  3. I charge a flat rate fee of $250 per refinance for up to 1 hour of representation.  Trip charge is maximum of $100.  {This illustrates that the attorney understands how to be profitable and thereby of good service both in the City and Suburbs}  Attorneys who charge too little and are unprofitable are not motivated to provide good and competent service and should be avoided.  Value is the golden rule in purchasing legal services whereas price is simply irrelevant.

For more information about representation in any real estate matter, call David Nelson at 877-464-6656 or email Dave at:  info@nelsonlawoffice.com

For more information about NLO Nelson Law Office, please go to:  http://nelsonlawoffice.com/practice-areas/ & http://nelsonlawoffice.com/attorney-bio/.

To read reviews of NLO Nelson Law Office, please visit http://www.yelp.com/biz/nlo-nelson-law-office-chicago-2.

file bankruptcy on your own

Clear Lake Iowa

Clear Lake Iowa

file bankruptcy on your own

  • Schedule Your Free Bankruptcy Consultation




File your own bankruptcy.  File your Chapter 341 documents, reaffirmation agreements, filing fee and attend your own Chapter 341 meeting.  How Hard Can it Be?  Avoid Attorney fees and file it on your own.  Warning – it will take a lot of time.  Great for disabled, unemployed or low income filers with uncomplicated cases.  Chapter 13 is practically impossible to do properly on your own, but can be done.  Usually people start it on their own and add an attorney later.

Ever wondered how to file a bankruptcy on your own? Well wonder no more, here is the quick 5 minute course on how to do it!

1. Fill Out the Required Bankruptcy Forms – Link to Official Bankruptcy Forms!
2. Take your pre-bankruptcy credit counseling course at least one calendar day prior to your filing – Link to an Example of Court Approved Credit Counseling Agency!
3. File your bankruptcy by going to the Federal Clerk of Court in your district – Link to Information about Where to File!
4. Submit your Chapter 341 Documents within 14 days to the bankruptcy – Link to Information on how to submit your 341 documents!
5. Attend your 341 Meeting
6. Wait for your Discharge Order!
7. Need Help – Contact the Bankruptcy Assistance Desk – Link to the Help Desk!

8.  Link to “Guide for Individuals filing without an Attorney”, by United States Bankruptcy Court for the Northern District of Illinois.

That’s it.  How hard can it be?  Avoid attorney fees and file it on your own.

So what’s the catch? Why do people use attorneys in probably 95% of all cases:

• What do you fill-in the forms?
• How do I reaffirm a debt, such as to keep my car or home?
• How do I fill out the means test?  It’s worse than doing my taxes!
• What do I say and do at my 341 Meeting of the Creditors?
• Should I be using a Chapter 13 bankruptcy for my higher income and/or need to save my home?
• What is a motion for relief from stay?
• Why has the trustee filed a motion to dismiss?

Bottom line – filing on your own is a good option when you have a lot of time on your hands and can go to the bankruptcy assistance desk to help along the way to confirm your filings are done right. This is great for people who have racked up a lot of debt say $60,000 in credit card debt are now unemployed, getting harassed by creditors and will not likely be re-employed for at least one year. This is true of people in the construction business and other long cycle industries. Another good application for filing on your own is when you have made a lot of money in the past, have lots of debt and then suffer a disability which becomes permanent leaving you with an income that is often only 20% of your former income. In this case you won’t be taking on more debt in the future and you are really in no danger of a lawsuit or garnishment, but you simply want to clean up and get rid of all of the old debt so that you can focus on your new life. Many times these folks will do best using legal aid associations providing pro-Bono – free bankruptcies. One large organization that is used in Cook County is: Legal Assistance Foundation of Metropolitan Chicago.

For a free 1/2 hour bankruptcy consultation to learn whether you qualify for debt relief under bankruptcy or should even consider filing on your own, please call 877-GO-GO-NLO (877-464-6656) or email your request for a consultation to us at info@nelsonlawoffice.com.

illinois hardest hit program

illinois hardest hit program

Illinois Hardest Hit Program – Save Your Home – $25K Grant to Pay Mortgage Arrears

For anyone who hasn’t heard, here’s the news…there’s a new program on the block for saving your home.  And for some people, it’s a hit.

Looking for unbiased help in figuring out how to save your home?  Check out the following housing organizations. Click on the Link.  I have worked with all of them for years and know of their honesty and fair dealing:

The Illinois Hardest Hit Program essentially gets your home out of foreclosure.  Pays all the arrears, court costs, etc. to reinstate your loan fully and then provides up to 18 months of payment assistance.  The cap on the assistance is $25,000.

To apply for this program, please go to (click link):  Illinois Hardest Hit Program

Pro’s:

  • No Fees
  • Completely Reinstates Your Mortgage
  • Up to 18 months assistance

Con’s:

  • Increases the mortgage balance on your home by up to $25,000
  • Does not reduce the total amount owed on your home
  • Does not provide assistance after 18 months which is a problem if a person has not secured employment or their family is only partially employed

Who are the best candidates for this program:

  • Homeowners who are only temporarily out of work and can easily return to work in a stable job within 18 month of starting the program
  • Homeowners whose mortgage has less than $15,000 in arrears or is about 6 months or less behind
  • Homeowner who want to stay in their house for 10 years or more and does not care about having the flexibilty to move….for say a new job, changed family circumstances (divorce) or any other matter

Who are the worst candidates for this program:

  • Homeowners who haven’t made a mortgage payment for over one year
  • Homeowners who are in a profession that has been affected by the severe economic downturn such as construction or union jobs and are unlikely to have stable employment for the next five years
  • Homeowners who want the ability to be flexible in selling their home in the next 10 years

Who should consider a short sale of their home instead of this program:

  • Homeowners who cannot afford their home even when they are fully employed
  • Homeowners who are in an employment industry that will not recover soon and may need to relocate for employment
  • Homeowners who have so much debt on their home that they will not have equity for ten years or more (typically someone with two or more mortgages including a home equity line of credit)

Who should consider a Chapter 7 Bankruptcy instead of all of these options?

  • Homeowners who have unsecured debt (credit card style debt) that exceeds more than 1/3 of their annual take home pay
  • Homeowners who have not made a mortgage payment in over one year
  • Homeowners who have not been able to get a short sale approved by their lender
  • Homeowners who want to easily walk away from a home to simply move-on or need to relocate for employment
  • Homeowners who are insolvent – that is – no real assets outside of retirement accounts

When is a Chapter 13 Bankruptcy Reorganization a  better than the Illinois Hardest Hit Program?

  • When a mortgage debt is more than 6 months in arrears (no payment for at least 6 months or longer
  • When the homeowners property has more than one mortgage such as a second mortgage or home equity line of credit
  • When the homeowner has equity or something valuable to save in the property but also has a large amount of unsecured debt (credit card style)
  • When the total home mortgage debt can be reduced through “stripping off the second and junior mortgages/liens”

loan modification not permanent

Mrs. Free's Studios Davenport, Iowa

Mrs. Free’s Studios Davenport Iowa

loan modification not permanent

Why Hasn’t My Loan Modification Become Permanent – I’ve made the trial modification payments and now I haven’t heard anything from the bank?

Homeowner is a woman whose house is worth approximately $100,000. She has a mortgage loan of approximately $180,000 and a new trial modification payment of $1000 per month. She has made all three trial modification payments of $1000 each on time and in compliance with the lender’s demands. At this time, she has now made a total of 6 payments and the lender has still not offered a permanent loan modification. After the third payment was made, the lender “asked for more information.” She has not been able to get any more updates from the lender.

What should she do?

If she wants to stay in the house for over the next five years regardless of whether the loan modification is made permanent, keep making the trial modification payments until the lender says otherwise.

If she does not want to keep the house unless she get the permanent loan modification, I would recommend walking away from the home. The homeowner should try a short sale, deed in lieu of foreclosure and ultimately bankruptcy to eliminate this debt.

Rationale:

Most residential primary household loan modification are done under the guidelines of the HAMP (Home Affordable Modification Program). This “program” is not a law and is not something that a homeowner can enforce against a lender. Instead, it is a law that provided “incentives” of up to $1000 to a mortgage servicer to keep a borrower from defaulting on their mortgage. The incentives HAVE EXPIRED. Lenders are simply offering modifications under these guidelines to improve their profitability by keeping more borrowers from defaulting. However, where a borrower really can’t afford the home long term, it can be surmised that lenders are simply “stringing along” borrowers for several months…without end at trial loan modification payments amounts to get them to pay more towards the lender until they ultimately give up, default, or go back to making their regular mortgage payments.

Therefore, in this case if the borrower simply stopped paying after 6 months of trial modifications, she would be:
1. In Default
2. Not have a modified mortgage
3. Be in arrears immediately because she had been making a lower payment than what was required by the lender
So why can a lender get away with this?
1. Lenders DO NOT have to give modifications after the trial period is completed
2. Lenders DO NOT have to give modifications even if underwriting says they qualify
3. Lenders CAN tell borrowers that they will accept lower payments and accept them and Still then declare a default at anytime and foreclosure AT THEIR LEISURE AND WILL
4. Borrower CAN BE SCREWED OVER at anytime in these modifications
5. Lenders CAN CHERRY PICK only the best borrowers and use modification processes to hurt borrowers and get the most amount of money from them
So is there any justice?

YES – in foreclosure, if the borrow hires good legal counsel for usually more than $2500 in legal fees, fraud can be alleged and judicial action can be taken against the lenders including rescinding the loan.

Why don’t we hear more about loans being rescinded?

Usually borrowers are completely out of money and the will to fight any longer by the time the foreclosure begins and simply walk away. Lenders know this and build their business models to exploit this.

Bottom line – BE AN ACTIVIST! If you don’t get your permanent modification in three months as promised, don’t wait – take action. Call any attorney immediately to figure out your options:
1. Foreclosure Defense
2. Bankruptcy
3. Non-Bankruptcy Surrender Options
For more assistance and to schedule a free consultation, email the NLO Nelson Law Office today at info@nelsonlawoffice.com or by calling us at 877-464-6656.

Can I Modify my Home Mortgage in Chapter 13 Bankruptcy?

Mrs. Free's Studios Davenport, Iowa

Mrs. Free’s Studios Davenport Iowa

Can I Modify my Home Mortgage in Chapter 13 Bankruptcy?

  • Schedule Your Free Chapter 13 Bankruptcy Home Loan Modification Consultation




Yes – you can modify your home mortgage in a Chapter 13 Bankruptcy by Stripping Off The Second Mortgage and other junior liens.

Today, you can modify your home mortgage in two ways:  Get a modification from the lender or file a Chapter 13 bankruptcy and attempt to strip off the second mortgage on your home.  Oftentimes, this will reduce the balance on your mortgage by 30%.  While this isn’t perfect, it is oftentimes, the difference between being able to keep your home or being forced to surrender it in foreclosure.

So how does this work.? First it is important to determine whether you should file bankruptcy.  Second you need to file a Chapter 13 bankruptcy.  Third, your bankruptcy attorney files an adversary procedure with the court to rule that the value of your home is less than the balance on  your first mortgage.  Fourth get the Chapter 13 plan confirmed by the court whereby the second (third, fourth, fifth and any junior mortgages) are wholly unsecured and will be paid as unsecured creditors.  At the end of the plan (60 months), the second mortgage and all other junior mortgages are released by the lender and the debtor/s is left with a home with only one mortgage.

Does this work in real life applications?  In the last year over 40% of our firms Chapter 13’s had successful plan confirmations with the second mortgage being stripped.    On average this reduced the principal by 30% on the home indebtedness.

So what is not so great?  The first mortgage still has to be paid off in full with all of the arrearages paid back over 60 months along with the costs of collection plus the first mortgage may still have a balance that is more than the home can be sold for…so why has the court allowed this to occur – the answer is in the intent of the bankruptcy code, the idea was that if home mortgages could be modified in bankruptcy, why would anybody pay their mortgage?  Therefore, to save the ability for consumer to get home mortgages from banks, the bankruptcy code strictly prohibits the modification of a home mortgage this is wholly or even partially secured even if secured by only $1.

Bottom line – Chapter 13 offers a crude type of home mortgage modification by getting rid of unsecured mortgages, however, it does not fix long term problems with a first mortgage.  If your first mortgage is OK by itself then this type of modification is for you.  If your first mortgage is still a problem, then it may be wise to simply surrender the home in the bankruptcy and let the lender take the loss.

What are we seeing now is unbelieveable – it never used to happen in the past, but it is happening now: After filing the bankruptcy  and after stripping the second mortgage, the lender on the first mortgage voluntarily modifies the first mortgage to make the plan easier.

So what is this all about?

Well…here’s the best way to describe it.  Typically, the interest rate is reduced to 2% for the first five years and it increases by 1/2% per year after that until it hits the market rate and then becomes fixed at that rate.  The kicker is that the bank will put the arrears on to the balance of the loan.  Doesn’t seem like a big deal, but it is!  If your old mortgage payment was $2400 per month and you were 10 months behind at the time of your bankruptcy filing, then you owe $24,000 in arrears.  In a typical 60 month chapter 13 plan, you will pay $24,000/60 per month to pay back these arrears.  This is $400 per month.  In this case, the bank basically put this into the balance.  So basically, you are now paying 2% interest on $24,000 over the next 30 years or so.  Around $50 per month.  The benefit is theoretically that your home if you keep it for 15 years will finally be worth more than the mortgage; you can sell it, pay off the mortgage and have a happy life.  This is all true with one caveat.  What if you have to get out of the house one year after your bankruptcy ends and you are still “underwater”   Good luck – you just entered another bankruptcy or years of garnishments.

In a nutshell – if you want to live in your house a long time and don’t have a big need to move soon and don’t believe you will be forced to move, then this is the ticket.  Basically, the bank cuts its price on loaning you the money.  But if you need to be more flexible and actually have the debt load be less immediately, then you are out of luck and better surrendering the home in bankruptcy.

Examples:

Ron and Karla bought a home in 2006 for $200,000.  The first mortgage was $160,000 from Wells Fargo.  The Second Mortgage for $40,000 was from Banco Popular.  Ron and Karla were doing great until Karla lost her job in 2008.  The couple missed 8 payments.  The couple was five months into their foreclosure action when they filed a Chapter 13 Bankruptcy.

Ron and Karla hired David Nelson to file their Chapter 13.  David suggested that they keep their home, but attempt to strip off the second mortgage.  Ron and Karla agreed.

Ron and Karla make approximately $70,000 per year together and have two children.  Their budget is tight and the means test says that they need to contribute on 10% of their plan to paying unsecured creditors.

Ron and Karla have no other debts besides the home.  Their mortgage payment was $1400 on the first mortgage, $500 on the second and their tax escrow was $300 per month.

Ron and Karla were $11,200 in arrears on their first mortgage when they filed their bankruptcy.

Here is how their plan payment is figured.

$1400 for payment of the first mortgage regular payment
$300 for tax escrow payment on the first mortgage
$67  (10% of $40,000 divided by 60 months) for payment of the unsecured second mortgage
$187  ($11,200 divided by 60 months)
$1954 Subtotal
$195  Trustee Fee (10% of payment)
$2149 total payment

So how does this work out with their budget

$70,000 Gross Income Per Year
$5833 Per Month Gross
($1458)  Taxes
$4375 Net Income Per Month

$2149 Plan Payment
$250  Gas & Electric
$800  Food
$194  Clothing
$100  Laundry
$250  Medical
$502  Transportation
$130  Auto Insurance
$4375  Subtotal

Square Budget.  Home Saved.  Overall home mortgage modified by overall reduction by 20%

Bottom line – this Chapter 13 accomplishes good things.  With other applications we might have an auto loan, additional credit card debt or other unsecured debt.  For those discussions, please see my other blog postings.

For more information about bankruptcy, mortgage modification or other debt relief options, please call NLO Nelson Law Office at 877-464-6656 or email us at info@nelsonlawoffice.com

Unreleased Mortgages – The Hidden Nemesis

Unreleased Mortgages – The Hidden Nemesis

I recently ran into a very surprising situation involving a real estate transaction that should have been simple.  The client was selling a residential property.  It was a single family home with a simple single mortgage.  Ordinarily, you can pull a title search, prepare the commitment and close within two weeks of opening the file.  However, this title search revealed an unreleased mortgage from 20 years prior to the search.

The issue is that normally none of the succeeding transactions would ever occur without the mortgage being released, but sometimes mortgage companies would not record the release because they would send it to a customer and make them record it which the customer oftentimes would not do because the sale had already occurred with proof of payment being in the HUD-1 at closing.

The result:  A perfect closing with perfect title, except it isn’t on public record.  Only with the title commitment can you fully know that the mortgage has actually been paid off, released, but the release hasn’t been recorded.

The solution:  Get a copy of a prior title policy showing the mortgage as cleared.  So what do you do if the title policy is not accessible.  Bottom line – forensic title work.  Usually you are looking for any indications of a title company or title insurer on successive mortgages that come later in time.  Then you call them, ask for a copy of title and work backwards.

The moral of the story:  Even if everything should  be on public record, you should:

Keep a copy of your HUD-1
Keep a copy of your title policy
Keep a copy of your recorded deed
Store them in your safety deposit box

TODAY the story is different.  When you close today, the title company collects $48 for each mortgage so that the release is guaranteed to be recorded.  This law was enacted in the later days of the housing boom as unrecorded mortgage releases became rampant.

Bottom line: Be prepared, when you sell your house, you may have an unrecorded release of mortgage to deal with.  Good luck and clear titles to you.

Short Sale Tips & Strategies

Short Sale Tips & Strategies

Since the decline in real estates price began in approximately 2008, more and more people have been seeking to do short sales.  So what are they?

A Short Sale is simply a sale of real estate where the purchase price is too low to fully pay off the lender.  Therefore the lender is “shorted”.  When you sell real estate, you have to provide clear title to the buyer.  To do this all of your mortgages (lenders) have to be paid off along with taxes and any other encumbrance on title.

A typical example of a short sale with one lender.

Sale price of home:  $150,000
Mortgage Payoff:     $150,000
Costs of Closing     $25,000
Deficiency:               $25,000

*In this case, the seller will request that the mortgage (lender) allow the seller to pay only $125,000 of the $150,000 owed to get a release of mortgage at closing.  The lender then chooses whether to collect the $25,000 deficiency or write it off.  Typically, the lender will write off the deficiency and sell it to a third party who will try to collect the deficiency by filing a lawsuit and obtaining a garnishment against the seller’s wages.

Bottom line – in this case, the short sale got rid of the house but left the seller with a deficiency of $25,000 owed to the lender.  A great result if only getting rid of the house was the goal.  Typically this is people who are moving a long ways away and make enough money to pay off the deficiency.

A more typical example is:

Seller has lost his job.  Seller is in foreclosure.  Seller wishes to sell his house before the house if taken at a foreclosure sale.  Pre-2008; oftentimes the house would be sold for enough money to satisfy all of the lenders foreclosure costs and balance owed.  Post 2008 this is not the case.  Today, a seller will often take a 40% loss against the value of their home in 2006.  This means that the following example happens often:

Sale Price:               $200,000
First Mortgage         $210,000
Second Mortgage     $80,000
Closing Costs:          $25,000

In this case, the seller sold the house.  The first mortgage lender agreed to allow the second mortgage to be paid $2500 and the first mortgage lender received $172,500 ($200,000 – $25,0000 – $2500).

Here is the effect to the seller:

1)  The foreclosure is dismissed with a satisfaction and no judgment on seller’s record
2)  Second Mortgage Lender is still owed $77,500 which they can collect themselves or sell for collection
3)  The First Mortgage Lender is still owed $37,500 PLUS $25,000 in costs of foreclosure and arrearages.

What happens nexts:  Most often the seller is given a chance to pay off these deficiencies or is sued by the lenders for the deficiency.  The deficiency judgments are good for 25 years in Illinois with proper renewal.  Therefore, without bankruptcy or settlement, the deficiency is paid off at 100% plus 9% interest per year using the maximum garnishment which is 15% of the sellers gross income.

Bankruptcy is an imperfect solution, but is often used in a catrastrophe like the example above.  Assume that the seller makes $75,000 a year.  Has a family of four and credit card bills of $40,000.  Bottom line, the seller has over $125,000 in debt to pay off on a salary of $75,000.  You couldn’t pay this off in 100 years.  It is in this situation where a bankruptcy discharge of the debt is helpful.  It is also helpful for retirement, because retirement savings are exempt in bankruptcy.  With your debt under control it is easy to start saving for retirement.

In conclusion – what is the niche for a short sale – it is great for someone who really needs to get rid of a property and is not necessarily concerned about a deficiency judgment.

Can I get a waiver of a deficiency judgment – you can if your attorney remembers to ask for this and is successful in these negotiations.

Why on earth would a lender waive a deficiency?  The best answer is – if they know that the seller is insolvent and doesn’t have assets and/or income to pay they will usually waive the deficiency if the lender is receiving more money than if they were in a foreclosure sheriff’s sale.

10 Steps to Purchasing Your First Home

10 Steps to Purchasing Your First Home

1.  Call the IRS at 800-829-1040 and request free tax transcripts for the last four years
2.  Call your HR department at work and request a payroll report for the last six months
3.  Visit a reputable lender, such as a bank or mortgage broker
4.  Get Pre-Qualified for a loan to learn how large of a loan you qualify for
5.  Interview 3 skilled realtors who work in the area you want to find a home in
6.  Meet with a housing counselor to learn about grants and First Time Homebuyer incentives
7.  Search for homes in only the neighborhoods you like and have reasonable commute times
8.  Limit your search to homes that are 20% less in cost than what you re pre-approved for
9.  Interview at least 2 homes inspectors use them whenever you make an offer
10.  Hire good legal counsel that is experienced and focused on real estate

Good Resources:

A.  Latin United Housing Association (www.lucha.org)
B.  Illinois Real Estate Lawyers Association (www.irela.org)
C.  NLO First Time Homebuyer Guide – request at info@nelsonlawoffice.com

The Bank Won’t Foreclose I Am Not Paying My Mortgage

The Bank Won’t Foreclose I Am Not Paying My Mortgage

Sometimes, lenders decide not to foreclose on homes that have delinquent home loan mortgages that are in default.  For example, Joe has a mortgage for $200,000 on his home.  His monthly payment is $1000.  $200 is escrowed each month for taxes and insurance.  Joe has not paid his mortgage payment for 6 months.  Joe is $7200 behind in his mortgage.  Ordinarily, the lender would being foreclosure proceedings beginning in the fourth month of non-payment.  Nine months later, the lender would have an order for possession and the foreclosure sheriff’s sale of the home would be confirmed and complete.

However, sometimes, a lender doesn’t want the property back.  The following are the most common reasons:
1)  The property will not be easily resold
2)  The property is occupied and is not being vandalized.
3)  The lender has documentation problems and needs to wait until they have been able to correct documentation problems.

Let’s say that you simply want it “all over”.  Then you have a problem.  Even though you are behind in the mortgage, you are still the owner and liable for any building code violations or other violations such as leaving a vacant building.  In most cases, you are best off living in the property until the lender asks you to leave.

The benefits of staying in your home:  1)  Time to save up funds to get a rental unit  2)  Time to save up funds to pay off any deficiency judgment or pay for a bankruptcy  3)  Ability to allow your family to remain in the home longer to allow children to finish high school or simply enjoy their home, family and neighbors.

Why do people hate staying in their homes?  They are anxious about the foreclosure knowing that inevitably they will be thrown out of their home.  Another reason – they just want to get away from the bad experience of owning the home and losing it due to default.  Here’s the problem – the painful staying in the home is often best financially.  Although avoiding a bankruptcy may not be possible, avoiding the financial destruction of your family is by maximizing the amount of benefit you can get from staying in the home.

Illinois Foreclosure Laws Right of Redemption and Title Theory 9 Months Or Longer to be out of your house

Illinois foreclosure laws right of redemption and title theory 9 Months Or Longer to be out of your house

Real Estate Law is State law, not Federal law.  Therefore, every state has different foreclosure laws.  Here in Illinois, the land of Lincoln, we have one of the most liberal foreclosure laws in the country.  It takes at least 9 months to get an order of possession against a homeowner from the first missed home mortgage payments.  Oftentimes in practice, this time is 14 months or more.

Why is this – there are title states and lien states.  In title states, the lender has title to property until the loan is paid off and the mortgage is released.  States like this are California and Florida where it takes about 3 months to throw you out of your home.  Here in in Illinois, the lender has a lien against the property and based upon our foreclosure law has to go through an extensive series of steps to foreclose.

Why do we have such a liberal foreclosure law?  Because we are a farm state!  Yes it’s true, everybody thinks of Chicago and its big city glitz but the reality is that we are an agricultural powerhouse and our state does not like to see farmer’s lose their farms.  But the real impetus for our law is the Great Depression when things were so bad that they gave a tax holiday for one year which is why we pay our taxes one year in arrears.

So hears to Illinois – the state that is conservative in its politics and liberal in its homeowner rights.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code. CALL 877-GO-GO-NLO (877-464-6656) FOR A FREE BANKRUPTCY CONSULTATION TODAY! SATURDAY APPOINTMENTS ARE AVAILABLE.