What is a foreclosure? Well it is not a type of property, it is really a legal process. In Illinois it is a process that can take just over a year to accomplish. The process begins when a home owner has missed two or more mortgage payments. The lender will attempt to contact the borrower, to tell the borrower that they are now in default, a Notice Of Default (NOD) letter. At this point the borrower can reinstate the loan within a certain period of time, paying all interest and penalties. Or the lender will begin foreclosures proceedings. You will see these in the public notice area of classified ads in local newspapers. Notice of Foreclosure in the title of the ad, means the property is in the foreclosure process. In Illinois it takes about eleven and a half months to reach this point. Title to the property has not changed hands. In fact this notice must be published in local newspapers on three consecutive weeks and no more than 45 days and no less than 7 days prior to sale. The actual sale of the property is announced in the Judicial Sale ad. In fact the borrowers that are in default may still be living at the address until the court orders the sale of the property. The borrowers still can redeem the loan, but after the sale it is too late, they need to move out of the premises. Some states allow redemption after the sale of the property, but not Illinois, also note that this process can be different in other states, Georgia for example completes the process in 30 days.
Foreclosures have always been a fact of life. The word foreclosure has become a household word, due to the number of sub prime loans, but, experts (hmmm?) also believe that many people who borrowed against their homes may also begin to have problems repaying that debt. No one wants to talk about it, after all it's embarrassing. You have options other than walking away or going through the foreclosure process. Check out the foreclosure avoidance agencies that are approved by the U.S. Dept of Housing and Urban Development (HUD) (go to their Foreclosure Web page). You do not have to pay for counseling, in fact there are plenty of scams out there where some one will profess to be on your side to help you. Beware, they will do little for you but take your money. Several of your options are to refinance, sell and bring cash to the closing, a loan modification or a lender work out, finally a short sale.
If you are in some such a situation, the first thing to do is to contact your lender and work something out. If you know of a friend or relative in such a situation then you should talk to them about their options, at least have them check out the HUD web site.
Foreclosures have always been a fact of life. The word foreclosure has become a household word, due to the number of sub prime loans, but, experts (hmmm?) also believe that many people who borrowed against their homes may also begin to have problems repaying that debt. No one wants to talk about it, after all it's embarrassing. You have options other than walking away or going through the foreclosure process. Check out the foreclosure avoidance agencies that are approved by the U.S. Dept of Housing and Urban Development (HUD) (go to their Foreclosure Web page). You do not have to pay for counseling, in fact there are plenty of scams out there where some one will profess to be on your side to help you. Beware, they will do little for you but take your money. Several of your options are to refinance, sell and bring cash to the closing, a loan modification or a lender work out, finally a short sale.
If you are in some such a situation, the first thing to do is to contact your lender and work something out. If you know of a friend or relative in such a situation then you should talk to them about their options, at least have them check out the HUD web site.
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