Avoiding Foreclosure: How the Process Works

Foreclosure ProceedingsMany people think they will never lose their home to foreclosure. The reality, however, is that anyone who fails to pay their mortgage risks having their house taken from them.

People fail to pay their mortgage for different reasons, including:

  • Being unable to cope with credit card bills
  • Losing your job or getting a new job that pays less
  • Getting a divorce (income is cut in half), paying alimony, and child support
  • Increased taxes
  • Getting sick and incurring large medical bills

No matter what the reason is for your failure to pay your mortgage, you have to be responsible enough to take action so you can save your home. Foreclosure defense attorneys in Schaumburg or anywhere in Illinois can help you come up with a plan to keep your home. All you need is to find the right one to hire.

Fortunately, foreclosure does not happen overnight. It takes a process to complete a foreclosure. Here is what you can expect if you start missing mortgage payments.

  • Month 1 – You will receive a letter, a phone call, or both from your lender, informing you of your missed payment. They will remind you of the disadvantages of missing your payments and to pay as soon as possible.
  • Month 2 – You can expect your lender to start calling. They will be open to a discussion on possible reasons you are delinquent. Remember, do not ignore your lender's calls. Trying to avoid them will only make matters worse. Explain your situation when you receive the call and tell your lender what you're currently doing to remedy the problem. Some lenders will encourage you to make at least one payment so you won't fall three months behind.
  • Month 3 – A Demand Letter or Notice to Accelerate will inform you of the 30-day period you are allowed to pay your entire balance. Do not ignore this demand letter or your lender's calls at this time. If you do not do anything about this, your lender will start foreclosure proceedings.

To avoid losing your home to foreclosure, never ignore your lender's calls and letters. Talk to a foreclosure lawyer if you are having problems getting your mortgage up to date.