When an Illinois resident takes out a mortgage, they must make the required payments on the loan and do so timely. When someone misses one or more, becoming current should be a priority. A foreclosure action might result if the borrower falls too far behind.
Foreclosure actions
When a lender initiates legal proceedings against a borrower to address missed payments, the process is known as a foreclosure action. At this point, the borrower has defaulted on the loan agreement and faces the potential repossession of their property. Foreclosing on the property allows the lender a chance to recoup the money owed to them by acquiring and selling the property.
The foreclosure action process commences with a public notice, and the borrower has the opportunity to become current with their obligations. A lender may prefer that the borrower becomes current with payments since this would be a less costly and easier outcome for all involved. Perhaps the parties could devise a plan or arrangement allowing the borrower to become current. However, there are situations where the lender must foreclose when the borrower cannot pay.
Addressing foreclosures
A successful foreclosure defense could help the borrower keep their property and provide a solution that also benefits the lender. For example, working out a new loan modification agreement might lead to agreeable terms for all parties. Granted, there might be instances where the borrower must deal with a party aggressively seeking to foreclose. In such cases, other foreclosure defense strategies may apply.
If the lender made a mistake, the borrower could establish the lender’s action is improper. For some, there could be statutes related to their situation that might delay foreclosure, such as when the borrower is on active military duty. Individual circumstances might vary.