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.

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.

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.

Home buyers can take advantage of record low mortgage rates of 4%. This has helped encourage first time homebuyers to buy but according to the Chicago Tribune it is anticipated that the number of mortgages written will drop 25% in 2012.

This may come as a surprise to some because the low interest rate is friendly to first time home buyers and encourages people to make the decision to buy now. Combined with the excess of home inventory and the decrease in home prices it is a great opportunity for buyers who do not need to sell a home.

The reason for the decrease comes from the lack of equity that homeowners currently have in their property. This means that fewer people who already own have been able to refinance. When someone refinances it counts as a written mortgage loan and counts towards the mortgage income for the year.

The decrease of home equity has been a major contributing factor in foreclosures in Chicago. When home values drop to a point where an owner has a mortgage debt for more than the home is currently valued at it becomes easy for them to make the decision to stop paying their mortgage.

For these people there really is no reason for the owner to try and stop foreclosure. They may even make the decision to let foreclosure happen. In this circumstance they would almost benefit from foreclosure rather than continuing to pay a mortgage on a home that is valued far less than the loan is for.

You generally have to have at least 20% in equity on your home in order to be able to refinance and take advantage of low interest rates.

For someone who has been unable to stop foreclosure on their home they can make efforts to rebuild their credit and may be able to successfully apply for a new home loan and get back on your feet.

If you are upside down in your home loan contact a foreclosure attorney in Chicago right away and discuss your options to decide if you should stop foreclosure or let it happen.

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.