Alternatives to Foreclosure

Alternatives to Foreclosure

Guidance from a Chicago Foreclosure Defense Lawyer

The foreclosure rates in the U.S. have escalated to record highs in recent years. Those homeowners who never would have imagined they couldn't keep up with house payments suddenly find themselves in foreclosure. You are not alone if you find yourself in this same situation. You may be thinking you have no choice but to accept a foreclosure on your home, but you should definitely talk with a Chicago foreclosure defense attorney before you give up. Our bankruptcy attorneys at Smith Ortiz, P.C. have extensive experience with bankruptcy, foreclosures, and alternatives to foreclosures. We may be able to provide you with other options that don't include losing your home.

Explore All Your Options

Some of the alternatives to foreclosure include:

  • Bankruptcy (Chapter 7 and Chapter 13)-Contrary to some bankruptcy myths, there are times when filing for bankruptcy may be just the right solution for certain situations. When the bankruptcy court approves your petition, it will issue an automatic stay, which effectively stops all creditors and debt collectors from attempting to collect from you during the bankruptcy process. It stops wage garnishments, harassing communications, and foreclosure proceedings.
  • Loan Modifications-Borrowers and lenders negotiate new terms of a mortgage. This can take place, if the lender agrees, whether you are current on your payments, late, in default, have filed for bankruptcy, or are in foreclosure. The modifications could be lowered interest rates, a lowered principal, or reduced attached fees. The lender could also extend the length of the term or hold monthly payments to a designated percentage of the household income.
  • Short sale-This procedure allows you to sell your home even though the proceeds will be less than what you still owe. It is up to the lender as to whether you will still be responsible for the deficit or whether they waive it.

We work hard to help you keep your home.

Don't let the threat of foreclosure stop you in your tracks. There may be even more alternatives that will work for you. We will review your unique situation and advise you as to your best options for keeping your home or avoiding foreclosure. We understand the stress you may be under and work hard to find the solution that will meet your goals and allow you to get your debt under control. Contact our firm as soon as possible.

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