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.

When an individual or business is about to go into bankruptcy or foreclosure they often spend their final months trying everything in their power to avoid those things. A homeowner will try desperately to stop foreclosure or sell the home before it is taken. A business owner may also try to sell a business in hopes of garnering a profit that can be used to pay of creditors.

According to an article in Yahoo! Auto Swedish car manufacturer Saab tried one last thing to save the business from bankruptcy. They worked out a deal with Chinese automaker Zhejiang Lotus Youngman. For a moment is seemed as if Saab would survive however GM blocked the agreement for security reasons. Saab is currently being manufactured with a GM engine because GM was the owner until 2010 when it was purchased by Dutch entrepreneur Victor Muller. GM also does a lot of business selling cars in Asia so having that information in the hands of a car manufacturer there was risky for their business.

GM narrowly escaped bankruptcy itself in 2009 and cannot afford any further set backs.

Probably a wise decision for GM has resulted in bankruptcy and liquidation for quirky car brand Saab.

Chicago bankruptcy lawyers will tell you that Saab probably did everything they could to avoid bankruptcy. Working deals at the last minute means they were trying to avoid bankruptcy just as any individual would.

If you are feeling the threat of bankruptcy hanging over your head talk to Chicago bankruptcy lawyers today and find out what steps you can take to secure your financial future. A bankruptcy filing attorney in Illinois is likely to offer a free legal consultation. This is an opportunity to get your questions answered before you commit to working with them. If you are struggling financially take advantage of the free advice and find out if there is a reasonable solution for your financial problems.

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.

There was a time when it felt like everyone who wanted to could own their own home. According to the Chicago Tribune around 2004 it was reported that 70% of American's owned a home.

This is a significant percent that has recently seen the biggest drop since the Great Depression. The Chicago Tribune reported that homeownership fell to a startling 65.1% in April of 2010. This is actually a bigger drop than what happened during the Great Depression in the 1930's.

Chicago bankruptcy lawyers will tell you that the reason for this has a lot to do with both bankruptcy and foreclosure but also with lifestyle changes.

It is a fact that foreclosures have increased significantly in the past few years. This affects homeownership because these people are choosing to move in with family members or rent a home before trying to get back into the housing market.

The fact that interest rates are at a record low does help entice some prospective buyers to take the plunge but it is not enough to turn the market around. Some areas like the Village of Schaumburg actually offer people buying their first home, $10,000 towards their downpayment or closing costs when they buy a home in Schaumburg. The goal of the this generous program is to encourage first time home buyers to settle in Schaumburg.

Other people have found that their home is now worth less than the mortgage they have against it. These types of housing disasters are causing homeowners to accept foreclosure and leave their home.

As with the natural laws of supply and demand this change in economy has caused rental prices to rise and home values to drop. Ultimately if you have never owned a home before and you are confident that you will find a place that you want to live for several years and potentially forever then now is a great time to buy. Lock in a low interest rate and you've made a very wise purchase.

Those that are still nervous about the housing market may choose to consider renting. This is the best option for anyone who may need to move in 3 to 5 years. It can be a risk to buy a home that you only intend to live in for a short time. It is also better to rent if you do not have the full 20% downpayment to put down to avoid paying personal mortgage insurance.

Far too many families in America are struggling to stop foreclosure. Make sure that before you buy a home you weigh out the benefits and disadvantages so you are sure you're making a wise choice for you and your family.

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 facing foreclosure some people want to stop foreclosure and find a way to stay in their house. If this is the case then options like loan modification are helpful. You work with your lender to modify your loan in a way that makes it affordable for you to stay in your home. For example, you lender might agree to an interest rate reduction that will lower payments and make the loan more manageable.

In other cases the person facing foreclosure may not want to stay in their home at all. This is what is happening to the Octomom, Nadya Suleman. She hasn't paid her mortgage in approximately 3 months and Yahoo News has reported that she will be foreclosed on next week if she is unable to sell her home before then.

It was reported by omg! from Yahoo! reported that Suleman stopped paying her mortgage in part because she was not welcomed by the neighborhood in which her house is located in Orange County. Knowing that she no longer wished to live in the house it could have made sense for her to explore a short sale.

Selling your home as a short sale means that your lender agrees to allow you to sell the home for less than you owe on it and they will release you of the remaining debts after the home sells. This is beneficial for both the creditor and the debtor because the foreclosure process is typically more expensive then the loss the creditor will take in a short sale. For the debtor, a short sale has less of a dramatic effect on your financial profile.

Your foreclosure attorney in Chicago will tell you that far too many people wait until the last minute before they seek help and explore their options to stop foreclosure before it's too late. The best option is to reach out to a foreclosure attorney as soon as you get into trouble. This will give them more time to help explore your options and they will be better prepared to help you stop 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.

The only way to stop foreclosure is to catch back up on your mortgage payments and get back on track or to admit defeat and try to sell your house as a short sale to keep foreclosure off your financial record. Losing your job can be a very scary and stressful time. People often feel depressed and in the current economy it can be very hard to get out there and find a new job. Unfortunately if you want to stop foreclosure and avoid bankruptcy your very best option is to hit the street and find a job. Here are a few tips for getting back in the job market:

1. Educate Yourself
   When you lose your job it's a great opportunity to reinvent yourself and the skills that you bring to an employer. Consider looking into local classes available in your area. Short classes will be available to teach new computer skills or build confidence in certain computer programs. The Illinois Department of Employment Security offers this type of training for free. They recognize that an unemployed person will have a much easier time finding a job if they improve their skills. It's going to be much more of a struggle to find a position if you don't work to improve yourself.
2. Revamp Your Resume
   It's likely that you haven't had to update a resume in a long time and things have changed. Try to contact someone who works in human resources or a staffing agency. Ask what they believe employers are looking for in a resume today and ask them to look over your resume. Feedback from professionals who are hiring is invaluable and will help your resume stand out.
3. Network
   Losing your job is nothing to be ashamed of. It's happened to countless Chicago professionals. The worst thing you can do is try to keep your job loss a secret and hide away. Hit the street. Let people know you are job hunting again and you've got a lot to offer. Build social media profiles like LinkedIn, Facebook and Twitter. These accounts will link you to a lot of professionals some of whom may be looking to fill a position you'd be perfect for.
4. Budget
   If you've lost your job don't continue to spend as if you were still employed. Your Chicago bankruptcy lawyers will tell you to meet with a financial planner to help you cut costs in your monthly spending. This will help you avoid draining your savings and make the threat of foreclosure or chapter 7 bankruptcy less likely.

Unemployment is still high and that can be stressful. If you make smart choices and follow these tips losing your job might be nothing more than a temporary inconvenience.

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.