Foreclosure Defense When Your Home Needs Major Repairs

 Posted on January 08, 2025 in Foreclosure

Few things are as stressful for a homeowner as knowing your home needs major repairs you cannot make. Some types of essential home repairs can cost upwards of $20,000 - an amount few people can pay out of pocket. If you were already at risk of foreclosure when you found out about the repairs your home would need, fighting to stay in your home might not be the most beneficial option for you. There are ways a Libertyville, IL foreclosure defense attorney can help you during the foreclosure process when keeping your home is not the ultimate goal. You might consider options like short-selling, making a strategic default, or consent foreclosure. These options can help you make a clean financial break from the home without taking on liability for the repairs.

Short-Selling a Home in Need of Work 

One option to help you avoid foreclosure while still getting out of your mortgage is to short-sell the home. Making a short sale means selling your home for less than what you still owe on the mortgage. Normally, in a short sale, the lender agrees to accept the amount you sell your home for in satisfaction of your mortgage.

In traditional home sales, the seller is generally expected to make certain repairs so that the home is ready to move into. In short sales, the home is nearly always sold as-is, meaning the buyer takes on the responsibility of making any needed repairs. This makes short sales a good option for homeowners who are faced with a repair they cannot make and are ready to walk away from the property.

How Consent Foreclosures Can Help Owners of Damaged Properties 

In a traditional foreclosure, the homeowner can be made responsible for paying the lender any amount still owed after the foreclosure sale. So, if you still owe $100,000 on your home and get foreclosed on, then your home only sells for $80,000 at a foreclosure auction, you might still owe $20,000. In a consent foreclosure, the borrower can normally be relieved of this obligation. If your home is in need of major repairs, the chances are high that your home will sell for less than what you owe on it. Approaching foreclosure this way can protect you from owing money on your home after you have relinquished possession.

Strategic Defaults and Major Repair Needs 

In rare cases, defaulting on your mortgage may be the most realistic or only option. This is especially true if your home has so much damage that restoring it seems unlikely. An attorney should guide you in defaulting strategically. You should always find legal representation before you stop making mortgage payments.

Contact a Lake County, IL Foreclosure Defense Attorney

Newland & Newland, LLP is committed to helping people who are facing foreclosure find the most financially beneficial solution. Our experienced Libertyville, IL strategic foreclosure lawyers will do all we can to help you make a clean financial break from your property. Contact us at 847-549-0000 for a complimentary consultation.