Foreclosure

A mortgage modification changes the terms of your existing mortgage. Each lender has different guidelines, so to check your eligibility, request a mortgage modification application packet from your bank and follow the detailed instructions. The bank typically requires extensive information and documents explaining why you are applying for the modification.

Under Illinois Mortgage Foreclosure Law, you have 90 days after being served to reinstate your loan. This requires paying all missed payments and any accrued fees due to the default. Once fully paid, the bank must dismiss the foreclosure lawsuit and consider you current.

A repayment plan involves an agreement with the bank to dismiss the foreclosure case if you comply with the terms. Each mortgage servicer has its guidelines regarding repayment plans.

A forbearance agreement temporarily pauses the foreclosure process and collection of mortgage payments, allowing you to re-establish your financial situation. Each mortgage servicer has its guidelines for a forbearance agreement.

A Deed-In-Lieu of Foreclosure involves transferring the property title or deed to the bank to avoid foreclosure. Typically, the bank waives any outstanding deficiency against you. This is a good option if you do not want the property and have no other liens on it.

A consent judgment is an agreement where the bank gains possession of the property immediately, waiving any potential deficiency balance. This is only a good option if you do not want the property.

A short sale involves listing your home for less than what you owe on the mortgage. This process requires notifying and applying with the bank for approval. If approved, ensure the bank agrees to waive the deficiency amount against you.