During tough economic times, more people tend to lose equity in their homes when they end up falling short on their mortgage payments. This is considered to be ‘underwater’, meaning you owe more on your home than it is actually worth. Some people are even close to dealing with foreclosure. It is important to understand what foreclosure means and how you can avoid it. Foreclosure is the legal process taken when a creditor seizes your home and tries to sell it due to non-payment on the loan. When a home is sold, the lender lent the money to the borrower with the agreement that the borrower gives the property as collateral. This means that the property is secured by the lender, and gives them the right to sell the property if the borrower can no longer make the agreed upon mortgage payment. Residents of Illinois can avoid the foreclosure process when they hire a foreclosure attorney in Chicago.
File for Bankruptcy to Stop a Foreclosure
The best way to stop foreclosure proceedings is to file bankruptcy. This forces a lender to desist with any foreclosure activity. When you file for bankruptcy with a hired attorney, your attorney can advise you concerning legal details including delaying foreclosure processes, and giving you and the lender an opportunity to find a solution that works for both parties. There are two main procedures that a creditor can use to foreclose on property; judicial foreclosure, and non-judicial foreclosure.
The Judicial Foreclosure
This type of foreclosure necessitates that a lender sues a borrower for a court order that permits a foreclosure, in state court. A judicial foreclosure does not typically happen since it takes more time and money for a creditor to accomplish. There are actually only a few states that require judicial foreclosures.
The Non-Judicial Foreclosure
The majority of states use the non-judicial type of foreclosure. This process is set forth by state law, and requires a Notice of Default and a Notice of Sale to be recorded. Non-judicial foreclosures do not involve a lawsuit, and are more preferred by creditors. When you are involved in a foreclosure, it is always wise to make sure you have excellent legal representation. A foreclosure attorney is going to be able to guide you through this difficult process of trying to save one of the biggest assets in your life.
When you need a professional and experienced foreclosure attorney in Chicago, contact Chicago Debt Solutions. They are ready to help their clients learn more about the foreclosure process and protect their assets.