HOW CAN I AVOID FORECLOSURE?
The first step in avoiding foreclosure is learning about your mortgage rights. We will explain them to you during your free consultation but you can learn some preliminary information by reading your loan documents and reviewing the following information:
Whether you can reinstate the loan by catching up on your past-due sums
The amount of the monthly late charge
Any other fees the lender can charge when your payments are late
Next, you will want to gather and organize your monthly income and expense information. That will help us assess your options. Here are a few of the foreclosure defense possibilities we will want to review with you when you come to our office:
Loan modification. This is a permanent change to your mortgage which might reduce the necessary monthly payment by extending the time you have to pay off the loan or it might lower the monthly payment sum by reducing the interest rate. More on this below.
Refinancing agreement. Maybe you are not yet behind on your payments but see trouble ahead. You may qualify for a replacement loan which reduces your monthly payment.
Repayment plan. Maybe your payment difficulty is temporary. You might qualify for a forbearance agreement, in which the lender reduces or suspends the payments required for a temporary period.
WHAT IF MY LENDER IS BEING ABUSIVE?
If your lender makes a mistake or oversteps the bounds of Federal or state law regarding foreclosures or debt collection, we can sue the lender for violations of these laws. By doing this, we turn the tables on the lender. If the lender loses, it has to come out of pocket to pay you damages and in almost all cases, my fees.
Another huge advantage is that in Illinois if you use sue your bank you can demand a jury trial. A standard foreclosure in Illinois is considered “equitable” relief, and that means no jury trial. As sympathetic as judges may be, they have to follow the law. Suing the lender, however, can mean a right to a jury.
When you sue a bank, your claims against the bank can typically be heard by a jury of your peers. Since 2008, banks don’t do well in front of juries. If you think you are alone in how you were mistreated by a bank, you are not. Most jurors have a friends, co-workers or family members who were similarly mistreated by a bank.
The bank’s fear of juries is why banks spend so much time and money fighting procedural battles to avoid having a jury trial. Without a counterclaim, banks have a much better chance of winning.