Want to know how to keep your home when it seems like a foreclosure is bearing down on you? The good news is that there are a number of strategies which may help you keep your home. The bad news is that it will not be quick and simple.

If you cannot pay your mortgage on your home in a timely fashion, your bank or other secured creditor will start foreclosure proceedings. Foreclosure occurs when a mortgagor sells your property in order to receive the money that is owed to them. If you are having trouble paying your mortgage, you should first contact a foreclosure attorney immediately to advise you on all your options.

What Does Home Foreclosure Mean for Me?

• You will most likely be unable to keep your home: If you fail to pay your mortgage for long enough and do not look for solutions, it will happen.
• You will most likely lose all the equity in your home: The bank is not required to sell your home for fair market value. Their primary goal is to cover the mortgage payment arrears, taxes, liens, attorney fees and auction fees. It is unlikely that there will be any additional funds remaining from the sale after these fees are paid.
• Your credit score will suffer:  A foreclosure will remain on your credit report for 7 years, making you a higher credit risk. You will not qualify for loans or credit cards easily, and your interest rates will most likely be much higher if you do qualify.

How Can You Keep Your Home?

• Prioritize your spending: After healthcare, keeping your home should be the first priority. Look over your finances to determine if you can make some significant cuts in spending in order to make your mortgage payment. If there are any optional items like cable TV, memberships, entertainment, or even a 2nd or 3rd car, eliminate them. Delay payments on credit cards and other "unsecured" debt until you have paid your mortgage.
• Federal Assistance Programs: Mortgage assistance is available from the federal government for homeowners who qualify; look into the Making Home Affordable Program. There are several excellent programs which are tailored to help homeowners just like you, who are struggling with payments and need guidance on how to keep your home.
• Make a Full Payment: If you are able to pay the amount owed in arrears, plus all fees and penalties incurred, the foreclosure process will be stopped.
• Try for a Mortgage Modification: You may be able to extend your repayment term or modify your interest rate to lower your monthly payment to a manageable amount, if you can get your lender to work with you. This is often possible to do.
• Chapter 13 Bankruptcy: This stops foreclosure proceedings. Additionally, the arrearages owed will be paid back through a court appointed official while you continue to pay your mortgage.
• Contact a foreclosure attorney who can guide you through your options when facing foreclosure.

One of the most important things you can do if you want to keep your home, is to be proactive. The problem will not take care of itself; you need to stay on top of things and start working on solutions. However, you do not have to do this on your own! Foreclosure is a complicated process, and it does not happen overnight. The best way to keep your home is to keep the lines of communication open with your lender and to contact a foreclosure attorney right away. Chang and Carlin LLP has extensive experience with forclosure law and can help you successfully come up with a plan to manage the foreclosure process.

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.

The Home Affordable Modification Program has been changed in an attempt to streamline the program and make it more beneficial to borrowers. The program is very helpful for families who owe more on their home than the property is currently worth.

The Chicago Tribune reported that residents in the Chicago area have seen a 30% drop in home values since they were at an all time high in September 2006. A foreclosure attorney in Chicago will tell you that this decline in value left many homeowners with more debt than value in their home. 

These people stand to benefit greatly from the Home Affordable Modification Program. Interest rates are extremely low right now which makes it desirable for homeowners to refinance. Unfortunately, until now any homeowner with a loan to value ratio higher than 125% were unable to refinance.

The Home Affordable Modification Program does have some rules that make it unavailable to some debtors. In order to qualify borrowers need to have a Fannie or Freddie backed loan that originated before May 31st, 2009. They can never have used the government's HARP program before and they cannot be behind in the mortgage payments and are allowed only one late payment in the last 12 months.

Due to these requirements it is unlikely that this program will help someone who is desperately trying to stop foreclosure. It can be argued that someone who is upside down may choose foreclosure rather than continue to pay on a property that has lost it's value however this is not the same as someone trying to stop foreclosure because they cannot afford their payments or are suffering due to the economy.

According to an article in the Chicago Tribune the government is hoping that the money these borrowers save after refinancing their home will be spent and successfully stimulate the economy.

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.

The economy has had an impact on all businesses. One service that is considered a staple in most households is cable television and up until now they have not seen a decrease in subscribers as a result of the recent economic downturn. While most of us can't imagine our life without a television it has been reported by the Chicago Sun Times that cable subscribers have seen a decrease of 380,000 subscribers in the last quarter. This is the equilivant to one of every 300 people canceling their cable service.

Some of this customer loss can be attributed to the fact that people are trying to save money anyway they can. Your Chicago bankruptcy lawyers will tell you that when debt begins to mount it is necessary to re-evaluate your monthly expenses and trim where you can. Additionally, with an increase in foreclosures more and more people are leaving their individual homes to go live with family or share a home with friends. By moving multiple families into one space they can all share one cable service.

Some of the people who have gotten rid of their cable service for budget reasons are finding that the internet provides all the television entertainment they need at no additional cost. Full episodes of most television programs are available online at the network's website and other services like hulu.com and netflix offer countless viewing options at anytime of day.

According to the Chicago cable company Comcast the internet is not taking away their customers. This may be true but they have definitely seen a decrease in customers. While locals strive to stop foreclosure and avoid chapter 7 Chicago they may find that turning off the cable and focusing on the internet may save them some money. Every cost saving measure can make a difference.

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.

Your FICO (credit) score is your key to getting a loan.  When your FICO score is pulled for a home or car loan the score determines if you are qualified to borrow the requested amount and then what interest rate you will pay on your loan. The FICO score alone could disqualify you from the loan or increase the interest rate you will pay for your purchase. If you have filed for chapter 7 Chicago or foreclosed on your home, your credit score is going to need some work before you can get a loan.

We are all familiar with what a credit score is but very few know what goes in to the number.

35% of the score comes from how much debt you have compared to how much credit you have. This is called your debt-to-credit ratio.

10% of your score comes from what kind of loans you have. For example, credit card debt is also known as unsecured debt and is a less stable form of a loan. When you have a mortgage or loan out on a car or house it's considered a secure loan. That is because there is an actual item backing the debt. Secure debt is better received in your credit score.

10% of the score depends on the number of credit applications you have recently filled out. Every time you apply for a credit card (including store cards), car loan, mortgage etc. your credit report is pulled. To differentiate, if you are asked for your social security number on an application, they are going to pull your credit.

35% of your score is dependent on your track record for making on-time payments. This is an easy habit to get into that will improve your FICO score.

15% of your FICO score is based on how long you have been building up your credit history. Blemishes on your credit record stay for as long as 7 years and will continue effect your credit score.

Your Chicago bankruptcy lawyers will tell you that the better you understand your FICO score the easier it will be to increase it. If you have filed for bankruptcy in Chicago or if you are trying to get back on your feet financially for another reason rebuilding your credit is the first place to start.

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.

Mobile home parks offer a nice, affordable place for people to live without the aggravations that go along with apartment life. There is no one living above or below you and you might even have your own yard depending on the layout of the park.

But for residents of Sunset Village in Glenview Illinois their mobile home life is in jeopardy and they may not have ever missed a mortgage payment. The way mobile home parks are set us is that you buy or rent a mobile home and then you pay a monthly rent for the land on which your home is sitting. For the residents of Sunset Village, the owner of the park is going in foreclosure in Chicago. This means that all the mobile home owners may have to find somewhere else to move their homes to.

Unfortunately this is easier said than done. It can cost $10k to move a mobile home and there are no other mobile home parks in the Glenview area which means that the proximity of children to their schools and adults to their jobs may be too far if they moved to another park. For some the only solution would be to find an apartment to rent in Glenview but if they have a mortgage on a mobile home they will still be responsible for it even if they are unable to live there.

That means monthly mortgage and rent payments which could be more than some people can afford. It doesn't take long when you're over extended financially to need to file for bankruptcy in Chicago. Those filing chapter 7 in Chicago could potentially lose their homes and cars before being discharged of their debt.

For the residents of Sunset Village it would be a shame if they were forced to file bankruptcy all because the owner of their mobile home park foreclosed on the land. They can hope that if the property is auctioned off an investor will buy it and keep it a mobile home park but according to a report in the Chicago Tribune the park needs a lot of work to the water system and the roads. This may make it less desirable to investors.

Speaking to a bankruptcy attorney in Schaumburg Illinois or in Chicago is something the residents of Sunset Village may want to do immediately.

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.

Recording artist R. Kelly is reportedly about to lose his Chicago property to foreclosure. The huge 11,000+ square foot home boasts 13 bathrooms and a four car garage.

According to the Chicago Sun Times the value of the home has decreased $1.2 million from is estimated worth of $5 million in 2009. Kelly owes over $2.9 million on the home.

The news of Kelly's potential comes shortly after recording artist Prince narrowly escaped foreclosure on his home. Prince saved his home by making a large lump sum payment to satisfy creditors. Prince's property was not the current home of his residence but a property that he had torn down the main house to build a new one. The project is not complete.

In other financial news Giordano's recently filed for chapter 11 Chicago and the Los Angeles Dodgers have also filed chapter 11. Chapter 11 bankruptcy does for businesses what chapter 13 bankruptcy does for individuals. It is often referred to as "restructuring" because the business or individual assets are not liquidated.

It is surprising to hear that well known businesses and celebrities are suffering financially and may go bankrupt or foreclose on their homes. This just proves how difficult of an economic time it is right now and how important it is to make good financial decisions.

If you are struggling with debts or mortgage payments seek out a credit counselor and if that doesn't work find Illinois bankruptcy lawyers or a foreclosure attorney in Chicago that offers a free legal consultation. Use this meeting to get the answers you need about bankruptcy and foreclosure. You may find a solution that suits your situation and you will be free of the stress of debt.

If nothing else you can rest easy knowing that you are in very good company as far as other people and businesses that are struggling financially.

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.

There has been some positive reporting lately that home sales are up slightly and foreclosures are down. But there are still some major problems facing the real estate market today.

First of all there is an excess of homes for sale. When the market was booming more homes were built to meet the need and now that the buying market has slowed there are more houses then there is a need for. The solution to this problem is time. Eventually the growing demand will even back out with the inventory.

Another big issue is a loss of equity. When housing prices fell and people borrowed against their home equity they were left with a debt on their home that was equal to or greater than the value. This also slows the real estate market because without equity people cannot sell their home and upgrade to a new home. A foreclosure attorney in Chicago will tell you that negative equity can quickly lead to foreclosure because homeowners feel like they are in a hopeless situation.

According to Bloomberg there are approximately 3 million foreclosures in this nation with a couple million more in danger of foreclosure. These numbers are estimates and while alarming, they are actually better than what the numbers recently have been.

When someone forecloses on their home they still need to find another place to live. The major effect of this has been seen in the rental market. Rentals are doing very well in this country despite the recent economic decline.

The Attorney General of Illinois is one of many Attorneys General who are in discussion with mortgage servicers about their foreclosure practices and what changes need to be made to help homeowners.

Christoper Thornberg of Beacon Economics was interviewed on Bloomberg Television's "In the Loop". In this interview he expressed concern that the Attorneys General weren't actually helping the economy by targeting foreclosure practices. According to Thornberg the real estate market would be better helped if debtors that have foreclosed on their homes were helped in buying new homes.

The benefit of this solution would be that home inventory would be used and homeowners would get out of their negative equity homes and into a more manageable financial situation.

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.

The Chicago Sun Times reported that two women were sentenced to a maximum of 11 years in jail after stealing millions from clients in a mortgage scheme that took place right outside Warrenville.

Pamela Williams and Patricia Johnson ran PLM Title Company in Wheaton, IL. According to the Chicago Sun Times the women took money that their clients gave them to refinance their homes and used it to pay for personal and business expenses. Some of the money was used to help save their failing company while some of it was also used to pay for the wedding of Williams' daughter as well as Chicago Bears season tickets.

The stolen money left their clients suffering with threats of foreclosure and reduced credit ratings when they had done nothing wrong. The money given to Williams and Johnson was supposed to be used to pay off their existing mortgage and take out a new mortgage against the home. Because the clients had their refinance money stolen they ended up struggling to pay two mortgages. Besides the personal expenses the women we using new refinance deals to cover the costs of existing refinance deals. It was a very complex scheme.

A Warrenville attorney will tell you that if you fall behind on your mortgage payments your lender will not be sympathetic to claims of fraud. All they know is that you are not making payments towards your debt to them.

Part of the sentence for Williams and Johnson is that they are required to pay $1.8 million in restitution according to the Chicago Sun Times. This is a large amount however it was reported that the women stole closer to $6 million in the duration of their scheme.

If you are struggling to make mortgage payments in DuPage county a Warrenville attorney can help. They can also help stop foreclosure if they are given advance notice that you are beginning to fall behind. Don't wait till it's too late. Get help early.

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.

It was recently reported by Bankrate.com that well known artist Prince was at risk of foreclosure when he was $368,382 behind on his Minnesota mortgage. They had even set an auction date for the property.

Despite popular belief, when a lender threatens foreclosure all is not lost, there are still several options available to you to help save your home. Loss mitigation is by Wikipedia definition, "when a third party helps a homeowner." Not all forms of loss mitigation include keeping your home. Short sale and deed in lieu of foreclosure are two forms of loss mitigation where a homeowner gives up their home to avoid foreclosing.

In order to keep his home Prince made a large payment of the amount due to his lender. Because a loan typically has to be 3 months late before it is considered delinquent enough to begin the foreclosure process the balance due can often be very large. More than someone who is behind in payments can afford to spend in one payment.

Since paying the balance in full is not usually an option, there is loan modification to help people who are stable enough to keep their home and continue payments but need some help getting back on track.

A foreclosure attorney in Chicago would discuss your options with you and determine the best solution. In some cases loan modification can simply be a waiver of all past due penalties and fees. Having these fees removed can be enough to get some homeowners back on track. Other types of loan modification can include fixing or lowering the interest rate or a special forbearance which stops payments for a defined period of time to help the borrower catch up.

Whatever your situation a foreclosure attorney in Chicago can educate you on the options available to save your home from foreclosure.

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.

When you make the decision to hire a foreclosure attorney in Chicago you may be trying to save your home so that you can continue to live there. Some may simply be trying to avoid falling victim to foreclosure.

Foreclosure can affect your credit for 7-10 years and it may take 3-5 years before you can qualify for a car or home loan again. There are forms of loss mitigation that will not actually save your home but they will do less damage to your credit score.

When presented with the reality of foreclosure you may accept the fact that you are going to lose your house. This does not mean however that you should just sit back and wait for foreclosure to happen to you.

Foreclosure proceedings are very expensive for a creditor. They typically hold foreclosure as a last resort. When you know you can no longer make your mortgage payments you can hire a foreclosure attorney in Chicago and try to get out of your home in an alternate way than foreclosure.

Deed in lieu of foreclosure (DIL) is when you negotiate with your lender that you will simply vacate your home and turn the deed over to them. This keeps everyone from having to go through foreclosure proceedings and the end result is virtually the same for the lender. They will agree to this only if they are confident that there is no way you will be able to make anymore mortgage payments.

Cash-for-keys negotiation is very similar to DIL except it typically pertains to more disgruntled debtors. With cash-for-keys the lender would actually pay the homeowner to move out of the house with as little difficulty as possible. No holes in walls, no damage etc. They would also be required to move out of the home quickly. The lender would benefit by avoiding the costs associated with evicting a difficult homeowner.

Deed in lieu of foreclosure could be a way for a proactive debtor to avoid foreclosure and get on with their lives. Make sure you discuss these potential options with your foreclosure attorney in Chicago.

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.