Today's home values have dropped so drastically that some house values are far below the current mortgage against them. This is a challenge for both lenders and borrowers. When a mortgage company forecloses on a home they turn around and sell the home to pay off the debt that is owed to them by the debtor. In a situation where the homeowner was upside down in their loan the lender will not garner the full debt from the foreclosure sale. In this case it is likely that your lender will seek a deficiency judgment and pursue you for the remaining debt owed to them.
If you believe there is not hope in trying to stop foreclosure on your home speak with a foreclosure attorney in Chicago. They may suggest that you request deed-in-lieu of foreclosure on your home.
Deed-in-lieu of foreclosure is when a homeowner asks to give the house back to the lender. This is beneficial to a lender because they save money on the foreclosure process because they do not have to go to court to get the home. When a debtor seeks deed-in-lieu of foreclosure they often believe they will be released of all their debt. Unfortunately if the home sells for less than what is owed the lender can pursue the debtor for the deficiency. This can go on for years and during that time the lender may sell the debt to a collection agency that will try to collect the debt in a more aggressive way and won't give up.
Your foreclosure attorney in Chicago will suggest that when you request deed-in-lieu of foreclosure that you also try to negotiate that the lender will not pursue you for any remaining debts. If they will agree to this it would mean that once you give them back the house you will be free of all remaining debts no matter how much they sell the home for.
This sounds like a great solution for someone who feels foreclosure is imminent. However it is important to remember that the lender does not have to agree to deed-in-lieu of foreclosure. They have the option to refuse and pursue foreclosure through the traditional route.
Speaking with a foreclosure attorney in Chicago will help you understand you options and better prepare you to seek an agreement with your lender.
DISCLAIMER: All information on this website are provided for informational purposes only and are not intended to be construed as legal advice. Chang & Carlin shall not be liable for any errors or inaccuracies contained herein, or any actions taken in reliance thereon.
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