ARE YOU IN FORECLOSURE?
Recent events in the real estate market have led to a record number of foreclosures in the Chicagoland area and nationwide. Listed below are the most likely situations that lead to your property being foreclosed on….
- The enormous amount of underqualified loans many sub-prime lenders gave out
- Adjustment of ARM’s
- Borrowers unable to keep up with current mortgage payments
- Over valued properties
- Predatory lending situations/mortgage fraud
- Loss of job
- Unable to sell your property due to market conditions
No matter which situation leads you into foreclosure the fact remains that a foreclosure on your credit rating will tarnish your credit for at least 7 to 12 years. Your credit is worth more than you might think. It can affect everything you do from renting an apartment, obtaining a credit card, determining your auto insurance rates, and purchasing a vehicle. Once you turn back a large asset such as a property into foreclosure, creditors will take notice. Most likely creditors will not extend credit to you or charge very high interest rates for the higher risk. Moving on with your life after foreclosure can be quite difficult for at least a decade afterwards.
You can avoid foreclosure… We can help.
As real estate agents who specialize in Short Sales, we are committed to personally help as many people as we can avoid foreclosure.. You do have options available to you to avoid foreclosure and this is where we come in. First, you need to know these facts about foreclosures…..
- Over 95% of realtors have no idea of how to handle short sales and foreclosures
- Many “professionals” fail to let you know your options
- The next 2-3 Years we will see a record number of foreclosures come into the marketplace keeping property values from rising
- Lenders DO NOT want to foreclose on your home
- Lenders are in the business of lending money not reposessing homes and then selling them again
- Even though you may be in foreclosure YOU STILL OWN THE PROPERTY AND HAVE RIGHTS!!!
WHAT ARE YOUR OPTIONS?
There are several options available to you, depending on your situation and goals.
Do you want to stay in your home or just get out of it all together?
Can you keep up with your monthly payments or is just not possible anymore?
Can you keep up with your monthly payments if you had a lower interest rate?
The answers to these questions can help in determining what your best option may be. For a full list and brief explanation of your options click on “Alternatives to Foreclosure” section on this website.
Here are some other facts about foreclosures you should consider:
- In Illinois the foreclosure process is a lengthy and can take up to 9 months after the notice of default date. This can be delayed if you have the proper representation. Therefore, after you have missed your first payment it can take approx. a year before your lender will actually foreclose on you and repossess your property.
- For the Banks/Lenders the foreclosure process is COSTLY. They don’t want to be in the business of repossessing properties, maintaining properties, and then selling these properties.
- Lenders do not like excess inventory or foreclosures on their books
- Lenders can lose a lot more money if the property goes to auction.
- Lenders are not in the business of selling properties they are in the business of loaning money to people who buy properties. Selling properties is looked as a loss to their bottom line.
- A home owner who goes through foreclosure is ineligible for a Fannie Mae backed loan for 5 years thereafter, and an investor owner for up to 7 years.
- Future mortgage loans and interest rates will be affected because the foreclosed homeowner must answer “Yes” to form 1003 Uniform Residential Loan Application question “Have you had property foreclosed upon or given title or deed in lieu thereof in the last 7 years?”
- A foreclosure affects credit scores downward 250 to 300 points, typically for over 3 years.
- Foreclosure stays on credit history for approximately 10 years.
- Current and future employment may be affected as many employers now require credit checks, particularly for employees in financial or sensitive positions.
- Outside of conviction of a crime, foreclosure is the most serious issue affecting security clearance for your job. For those who have careers in law enforcement, the Military, a security company, the CIA or other government agencies, a foreclosure could mean the immediate loss of the security clearance and the position.
Remember, if your facing a foreclosure you do have options and alternatives. The sooner you act the more options you have. We strongly encourage you to call 773-360-3443 for a consultation where we can further assess your situation.
Our home default specialist team is fully staffed from an attorney who specializes in these situations to a full loss mitigation team of professionals who know how to talk to your lender. You are covered every step of the way.
And remember our services are free of cost to you. We earn our commissions by negotiating the short sale and selling your property. Our commissions are paid by your lender.