Many people encounter occasional financial difficulties. Sometimes, money-related problems make it hard to pay your monthly bills. If you begin and continue missing your mortgage payments on your Illinois home, lenders can put this property into foreclosure. If this situation happens to you, having questions is understandable.
What does foreclosure mean?
Because most people understandably find it impossible to purchase a property with all cash, they try to qualify for a mortgage. A mortgage allows the borrower or mortgagor to make payments towards owning a home. Lenders can foreclose this property if payments stop, meaning they take possession of said property in an attempt to recover what they were owed.
Can I stop foreclosure from happening?
Yes, borrowers typically have a few courses of action that may help them avoid foreclosure. One foreclosure defense is to file for either Chapter 7 or Chapter 13 bankruptcy, which can let people restructure their current debts. Depending on the specifics of your foreclosure, pursuing a legal defense is another option.
Reinstatement can also be a vital way to prevent a foreclosure. Illinois allows borrowers to reinstate, which means to pay what they owe in addition to reinstatement-related fees and interest. A redemption period also exists, a grace period for mortgagors to pay off their debt.
How long does the foreclosure process take?
It’s worth noting that no two foreclosure processes will be identical. However, most foreclosures follow a general timeline. It typically takes about 12 to 15 months for foreclosure proceedings to conclude in Illinois. This process entails a lender filing a foreclosure complaint, serving notices and discussions between borrowers and lenders.
Having questions about foreclosure is understandable. It’s important to do your research and learn more about your options.