4 Dos and Don'ts If You Are Behind on Your Mortgage and Facing Foreclosure

 Posted on September 16, 2022 in Foreclosure

While the specifics of mortgage loans—and the associated paperwork—can be quite complicated, one thing is easy to understand: If you do not make your scheduled payments, your lender will eventually file a foreclosure action and take back your home. Just to be clear, foreclosure is the legal process that a lender uses to take possession of a property from a borrower who did not keep up with their obligations as specified in the mortgage loan agreement. Other things could cause a lender to initiate foreclosure, but the vast majority of foreclosures stem from borrowers defaulting on their payments.

The process of foreclosure can be overwhelmingly difficult for many homeowners, and it is extremely easy to make expensive mistakes under such stress. An error in the process could cost you a great deal, but if you are aware of where most people make mistakes, you can be sure to avoid them. A qualified foreclosure defense lawyer can also help.

Do Not: Ignore Your Lender

Under the law in Illinois, your lender cannot start a foreclosure action until you are at least 120 days delinquent on your mortgage payments. More than likely, however, your lender will start calling and sending you letters within a few days of your first missed payment. As you inch closer to defaulting, your lender will probably reach out more often—possibly every day.

It will not be comfortable to do, but you absolutely should answer the phone and speak with your mortgage lender. In most situations, your lender can offer ways to get your payments back on track so that you can avoid foreclosure. Doing nothing, however, is never a good idea in such situations.

Do Not: Let the House Fall into Disrepair

If you are approaching default status, it might seem easier to just give up and let your home fall apart. After all, who cares? The bank is taking everything anyway. In reality, allowing your home to fall into disrepair could reduce your available options for avoiding foreclosure. A short sale, for example, is going to be much more difficult or even impossible if the house is a disaster.

You might not have the extra money to pay for repairs or more expensive upkeep projects, especially if you are already struggling to pay your mortgage. But, do your best to keep up on smaller things. Patch holes, eliminate pests, and try to clean in general. It is important that you do not actively destroy or break anything intentionally, as there could be dire consequences.

Do: Accept the Reality of the Situation

If foreclosure proceedings have been initiated, it is time to face and accept reality. Even if you can stop the foreclosure, you will probably need a new place to live soon. Your mortgage is clearly too much for you right now. Start putting aside the money that would have paid your mortgage and begin looking for a new place. Do not wait, or you could find yourself without anywhere for you and your family to go.

Do: Work With a Lake County Foreclosure Attorney

It might seem like an unnecessary expense to hire an attorney if you believe that you are just going to lose your house anyway. However, a lawyer can help you identify and access options you might not have even known about, as well as reduce the damage resulting from the foreclosure. An attorney can also ensure that your rights are fully protected throughout the foreclosure process.

To get the help you need if you are facing the possibility of foreclosure, contact a skilled Libertyville foreclosure defense lawyer at Newland & Newland, LLP. Call 847-549-0000 for a free consultation today.

Source: 

https://www.ilga.gov/legislation/ilcs/ilcs4.asp?ActID=2017&ChapterID=56&SeqStart=107100000&SeqEnd=115800000