Chicago Foreclosures - Out with the Old and In with the New

We all have our dreams. Some of us want to have the warmth around the fireplace with family and friends, to be able to entertain, have fun, share moments. Then all of a sudden, your wife looses her job due to cut backs and so you tapper back on the excentricities. Next thing you know, you get your walking papers.

What's your next step besides wanting to disappear for a couple of hours and take a nap and hope when you wake back up, that this all is a dream. But it isn't.....

Everywhere around this country not a moment doesn't go by when another lay-off happens. It has been stated that unemployment has been at it's all time high since 1985. And I remember the 1980's.

If this effects you staying in your home then you need to know some options that are out there for the consumer:

• Repayment Plan - The Bank may consider a payment plan that will fit your budget and possibly bring your account current by the end of the plan.

Loan Modification - This program may allow the terms of your loan to be adjusted and brought current.

Extension - This payment relief option would bring your account current by putting the past due amount on the end of the loan and allow syou to continue making your monthly payment.

Home Sales Program - Putting your home on the market and working together with a Realtor and a representative from your Bank to make the sale process flow smoothly as possible. If the home's market value is less than the total amount owed, then you need to make sure that the Bank will forgive you of the outstanding difference between the selling price and the loan amount.

Refinancing - This is a great alternative if the property can be refinanced. However, you must look at the fine print on the terms of such loans because (a) the loan would be a sub-prime loan and you might have to pay a 6 month pre-payment penalty or more back to the bank; (b) if it is an FHA Loan - make sure you understand the terms of the loan. For instance: if you or your spouse got laid off again, would you default on the loan after the refinance? If so, what are the banks actions that they can take against you on "Round Two"? If you had to sell, and the selling price was less then the mortgage; would the Bank forgive that indebtedness or would you (a) have to repay the entire amount and/or (b) pay income takes on the outstanding indebtedness?

YOU HAVE OPTIONS.

Now you have just one more .....

Governor Patrick Illinois Quinn signed a new law that gives struggling homeowners an extra 90 days before lenders can force them out.

HOLD ON THEIR PARTNER, FINISH READING ....

THIS NEW LAW ALLOWS THE HOMEOWNERS EXTRA TIME TO WORK WITH LENDERS, BY PROHIBITING FORECLOSURES IN THE FIRST 30 DAYS AFTER DELINQUINCY. LENDERS MUST TELL THE HOMEOWNERS THAT THEY HAVE ANOTHER 30 days TO WORK WITH A CREDIT COUNSELOR AND GIVE THEM YET ANOTHER 30 days if they see a credit counseler approved by the U.S. Department of Housing and Urban Development.

Bottom is that you need to sit down and figure out your finances. Forget about what others may think because one thing you need to understand is that the 20 homes on your block? Well, about 14 of them are going through similar hardships and so were/and are your former friends and colleagues at work! So, I want you to take a break for two days and then write down what your monthly commitments are, including medical, health insurance, gas, electic, water, taxes, etc.

Here are two links that will help you to research to understand more about the options when facing mortgage deliquency or foreclosure:

http://www.MakingHomeAffordable.gov

http://www.HopeNow.com

I strongly urge you to take action sooner then later. It means all the difference in staying in your home. Illinois is now backing you by giving you the time to make the adjustment. Help the men and women who are placing new laws into effect by saying "thank you" and getting the help you need today.

Breath, tomorrow is another day. With each day comes a new dawn.

Barb Van Stensel, Realtor

"Help Those Who Can't Help Themselves" - My Grandfather
Arendt Van Stensel