Zombie Properties on the Rise: Two Ways to Avoid Foreclosure 

 Posted on November 11, 2022 in Foreclosure

“Zombie foreclosures” in Illinois are haunting homeowners well into the holiday season and  Illinois has the fourth overall number of zombie foreclosures in the United States. Perhaps you are facing this situation and need a real estate attorney to avoid losing your home to foreclosure. Or worse, maybe you already lost your home to foreclosure and are just finding out that outstanding debts on the property are still your responsibility. At Newland & Newland, LLP, we work tirelessly to keep you from losing your home in the first place by finding solutions to try to prevent foreclosure.

What is a Zombie Foreclosure?

Zombie foreclosures tend to stick around because the title of the house was never transferred from the original owner to the bank or the new homeowner. Some residents in Illinois are being billed for overgrown weeds and demolition costs on properties they thought they no longer owned. It is always good practice to check public records to make sure the deed is transferred to the new owner, even if you moved out of your home due to foreclosure.

Prevent a Foreclosure of Any Kind

In Illinois, foreclosure involves a judicial process that takes more than five years to complete. Here are two ways to prevent foreclosure:

• Loan modification could allow you to remain in your home and prevent foreclosure by adjusting the terms of your mortgage agreement. This could result in lower monthly payments and interest rates, but a longer repayment term. Most lenders are open to this option if it is short-term. If you were suddenly laid off or incurred unexpected medical expenses, a lender might be more open to changing the terms of your agreement.

• Short sales could also prevent foreclosure, although they still leave the original homeowner without their home. In a short sale, a home is sold for less than the property owner owes on it. The proceeds from the sale go to the lender to satisfy the remaining debt. Since the lender has to decide ahead of time whether they will accept the money of the sale to pay for the debt, it is always beneficial to have a foreclosure attorney help you negotiate the terms of a proposed short sale. While a short sale does ding your credit, it is not as damaging as a foreclosure. 

Contact a North Chicago Foreclosure Attorney  

If you have fallen behind on your mortgage payments and could lose your home, call 847-549-0000 for a free consultation. At Newland & Newland, LLP, we have more than 60 years of combined experience helping people avoid foreclosure. One of our Lake County foreclosure attorneys will try to prevent your foreclosure and help you with the proceedings.

Sources:

https://chicago.suntimes.com/columnists/2021/10/15/22728754/zombie-property-foreclosure-wanda-carter-chicago-widow-city-hall

https://www.attomdata.com/news/market-trends/foreclosures/attom-september-and-q3-2022-u-s-foreclosure-market-report/

https://www.ilga.gov/legislation/ilcs/fulltext.asp?DocName=073500050K15-1503