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.

When a homeowner is being threatened with foreclosure they may consider taking advantage of some offers to stop foreclosure that might seem like the perfect solution. Unfortunately an offer that sounds too easy is likely to be a scam.

Scammers have ways of finding out that you are at risk of foreclosure on your home. They will approach you with all kinds of opportunitiies to help you keep you home but in most cases they intend to take advantage of your situation.

An article in the Chicago Tribune recently explained two scams that you should watch for, straw buying and lease back.

Straw buying -
Straw buying isn't always bad. In fact, when done correctly it really can help someone save their home. However there are a lot of cases where people end up worse off after receiving help from a straw buyer. 

For a flat fee the straw buyer helps you refinance your home and get a new loan. They bring good credit to the table making a loan possible that otherwise wouldn't be. The owner of the home would also be on the refinance documents. The owner would continue to make mortgage payments until their credit got back on track and they could qualify to refinance on a loan without any help. The scam happens when the straw buyer drains the home of all equity. When they do this is makes it un-affordable for the owner.

If your straw buyer is honest it really could save your home but the risk is too great to take a chance.

Leaseback -
A leaseback is when someone buys your house and takes over all financial responsibility. You then lease the home from them for a set period of time. After that time you have the opportunity to buy your house back from the investor.

There are two ways to be scammed with a leaseback. The first is when the new owner pulls all the equity out of the home so it becomse impossible for the previous owner to buy it back. The other scam is when the leaseback contract allows all agreements to be cancelled if they were late or short on a payment. A minor payment error can cost a family the rights to their home.

No matter your situation, talk with a foreclosure attorney in Schaumburg and get a free legal consultation to discuss how they can help you stop foreclsoure.

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 has been reported by the Chicago Tribune that efforts are underway to correct the improper foreclosure practices that were used in 2009 and 2010 foreclosures. One practice under scrutiny is called robo-signing.

During this time some mortgage lender implemented a practice of pushing through foreclosures with robo-signing. According to the Chicago Tribune article, this is a practice where a lender had someone signing foreclosure documents en masse without properly reviewing each case.

The problem with this action is that some of those cases that were foreclosed upon were actually working with a foreclosure attorney in Chicago and seeking options to stop foreclosure such as loan modification.

Unfortunately for both the lender and the borrower if a foreclosure was pushed through in error both parties lose. The lender loses the income of holding a lien on the property and is forced to liquidate the home for less than it is worth as well as paying the fees involved with the foreclosure process. The borrower loses their home and ultimately has to start over when they had a chance to make things right with the lender.

It has recently been reported by the Chicago Tribune that the lenders who took part in these practices are now being held responsible for their actions. 4.3 million letters have been sent out to potential victims offering a case evaluation by an independent consultant. An advertising campaign has also been launched for those who may not receive their letter. The lenders have to pay for the consultants fees and an outside regulator will oversee.

Those who have been found to be victims of improper foreclosure practices such as robo-signing will potentially be offered compensation. This is a benefit however it will not bring back the home they were trying to save.

If you believe you have been a victim of these improper foreclosure practices you can learn more by visiting IndependentForeclosureReview.com or calling 1-888-952-9105. Review requests need to be submitted by April 30, 2012 and the foreclosed property must have been a primary residence.

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.

We all work hard to pay our bills and to be able to buy cars and homes. Despite having a steady income and successful career financial crisis can happen to any of us. Perhaps you unexpectedly lose you job, take on high medical debt or have another major life change. These things can happen suddenly and they can change your financial profile enough that you may no longer be able to afford your monthly loan payments.

Our initial reaction is to do everything we can to save our assets including hiring a Chicago foreclosure attorney. No one wants to give up their home or car. Once you've defaulted on your loan your best chance of saving the property is to scrape together the overdue balance with a little extra to cover late fees and possibly attorney fees.

Some may have the option to dip into savings or retirement accounts to get the money or they may borrow the money from family or friends. This brings you to an important decision. Unless the missed payments were due to temporary unemployment and you have a new job now then you need to make sure you are going to be able to afford the payments going forward.

It makes no sense to borrow money and drain savings just to default on your loan again in a couple months. If you decide to take action to save your home you need to make sure it's the right choice and that your income can cover your bills.

If you decide to let your house be foreclosed on you can take the money you would have put into trying to save it and invest it in a rental deposit. Moving forward and fixing your credit score and financial standing is the most important thing.

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.