Local IL homeowners who are facing a financial challenge may find themselves in foreclosure.
Foreclosure is when the mortgage loan doesn’t get paid back and the bank begins the
process to take ownership of the property to recoup its losses.
If you find yourself entering the foreclosure process, you might wonder if there is anything you can do about it.
In this blog post, you’ll read about a few foreclosure prevention measures in Belleville that you can take to keep your home from foreclosure.
Foreclosure prevention measures in Belleville IL
These foreclosure prevention measures might not all work in your situation but we’re telling you about them so you can make the decision
for yourself:
1. Pay off your mortgage / sell your property. The quickest and easiest way to end the foreclosure process is to pay off
your mortgage. After all, this is all the banks wanted in the first
place so they would be happy to let you stay in your home and they get
their money back. Admittedly, this is not always possible, which is
perhaps the reason that you’re in foreclosure in the first place.
2. Work out a deal with your bank. Sometimes you can work out a deal with your bank where you sit down with a mortgage or
foreclosure specialist and talk to them about changing the structure of
your mortgage. Perhaps your payments get spread out so they are lower
each month, for example. Just make sure that the deal works for you —
you don’t want to just repeat the process.
3. Do a short sale. A short sale is when you sell the property and use the proceeds of the sale to pay down or pay off
your outstanding amount with the bank. This keeps a foreclosure from
impacting your credit score and it gets the bank off your back!
4. Give your deed in lieu. Another option would be a deed-in-lieu-of-foreclosure, which basically means that you will hand
over the deed to your house to the bank and they agree not to put you
through foreclosure. This will often only work if your house is worth
approximately the amount owing on the mortgage. If not, the bank may
pursue the difference.
5. File for bankruptcy. In some ways, a bankruptcy is far more dramatic than a foreclosure because it impacts your whole
life. However, once you file for bankruptcy, the foreclosure process has
to stop so it’s still a foreclosure prevention measure.
If you’re not sure which one to do, consider this: If you can afford payments and you want to stay in the house then a foreclosure workout
arrangement (#2) is probably your best option.
If you want to put everything behind you and move on with your life then consider selling your home and paying off your mortgage with that money.
Considering selling your IL house?
We buy houses in IL for cash and would love to see if we can help you during your short sale. Contact us by
filling out the form on this page and we’ll see if we can work with you.
