Significant mortgage debt leads to a number of foreclosures in Cook County, Illinois every year. Many of these foreclosures are contentious and result in significant legal bills and procedures. But there is a different way. Consent foreclosure is a way to ease the process of foreclosure by providing consolations that both sides would appreciate.
Foreclosure is a complicated and extended process in the state of Illinois. In a foreclosure hearing, the lender presents its case for why it should take possession of a house and the resident argues why they should be allowed to remain. The court hears these sides and issues a verdict. A consent foreclosure in Illinois is when both sides reach a settlement and avoid the contentious nature of a verdict. This agreement stipulates that the borrower does not oppose the foreclosure proceeding. The lender often gives up some of their rights. Most often, the key concession is a collections defense. Lenders agree not to pursue collections for any additional money that the borrower may owe after the foreclosure process.
Reasons for a consent foreclosure
A consent foreclosure is particularly helpful when the facts of the case are not in dispute. In many instances, a borrower is notably delinquent on payments and may owe a substantial amount of money that is greater than a foreclosure sale rate. If the court finds in favor of the lender, the borrower loses their property and may still owe additional funds if the sale of the property does not cover what they owe.
The lender will still owe substantial court costs no matter the situation. Therefore, a consent foreclosure may end up making them money in the end. Consent foreclosures greatly ease what may otherwise be a painful process and are certainly preferable to traditional foreclosures in many circumstances.