Partial Mortgage Payments Will Not Save Your Chicago Home

15-Dec-2010 When money gets tight some people assume that if they make a partial payment towards their monthly mortgage bill it will prevent them from foreclosure. Although partial payments against utility bills may keep you lights on the same method does not work for mortgages. In fact if your mortgage company receives a partial payment from you they may send it back.

If you have sent partial payments that your lender returned make sure you do not spend that money elsewhere. If you plan to keep your home you will be responsible for the missed payments.

If you find yourself in a situation where it is impossible to make your monthly mortgage payment your first step should be evaluating your situation and consulting a local real estate attorney.

If you believe you are capable of making a mortgage payment in the long term you may be able to work out an agreement with your lender that will help you keep your home. Some potential solutions may include a loan modification or interest rate adjustment. They may even approve a temporary reduction in your mortgage payment but beware the reduction will be applied to the principal not the interest so you are ultimately extending the payment period on your loan. This can make it hard to refinance or sell down the road.

Some may find that their financial situation cannot maintain a mortgage payment in the future. Your best bet is to try and sell your Chicago home before the foreclosure process begins. If the real estate market in your area is not strong right now a short sale may be a viable alternative.

Many people assume that the bank wants to foreclose on their home. This is not true, it is far more beneficial to the lender if you pay against your home over time. They will work  with you to avoid foreclosure. Lenders are very overwhelmed with foreclosures right now so the process is taking longer than usual. This may buy you several months rent free in your home however you still need to take action on your behalf. Contact a real estate attorney to devise the best plan for either keeping or selling your home to avoid foreclosure. There are many options available to you and your attorney will help you determine what the best course of action is for your situation.

Chang and Carlin Disclaimer
The content found on the Chang & Carlin site is not legal advice and is purely for informational purposes. The information contained herein is not a substitute for the advice of an attorney and does not create an attorney-client relationship. If you are interested in obtaining information about chapter 7 bankruptcy, chapter 13 bankruptcy, foreclosure services, real estate legal services, you are encouraged to call our law firm at 866-790-8601 or Request a Free Legal Evaluation. Chang and Carlin serves clients in Chicago, Schaumburg, Joliet, Warrenville, Waukegan, Illinois.