How Home Loan Modification Lawyers Can Help You Keep Your Home During The COVID Pandemic

Why Hire A Home Loan Modification Lawyer

Home loan modification lawyers understand that Covid-19 has shut down several businesses leading to an unprecedented rise in unemployment rates. Naturally, if you don’t have a job, how can you be expected to pay your mortgage? That is a dilemma several homeowners are facing, with many on the way to foreclosure. However, you can avoid closure by hiring a home loan modification lawyer.

What Is A Home Loan Modification?

A loan modification is basically an agreement that you form with your lender to change the terms of your original loan, so you can make payments in an affordable manner. The main aim is to prevent foreclosure, which is a suitable solution for homeowners who find themselves without employment or funds to pay their mortgage on time.

In order to be eligible for a loan modification, the following requirements need to be fulfilled:

Your income is insufficient to make mortgage payments regularly
You experienced a financial hardship (such as medical bills resulting from a Covid-19 diagnosis) and you cannot afford to pay the mortgage as a result.
The property is your main residence

Other Options

The aforementioned is not the only way you can avoid foreclosure. If you wish to alter your current mortgage, your home loan modification lawyer can also help you modify it to an adjustable mortgage one, re-amortize loans, and acquire reductions in the principal amount that is owed.

You can also opt for forensic loan auditing to determine if any laws were violated with the loan you received. If the lender charged you a hidden or excessive fee he can be taken to task and sued. In some cases, foreclosure can be avoided.

According to the Illinois Mortgage Rescue Fraud Act, loan modification consultations cannot take an upfront fee. While this is illegal in the state, some consultants still try to charge thousands of dollars from their clients which they have to pay before they can be served. As per the law, you cannot be charged till the loan modification is successful and you avoid foreclosure. Naturally, searching for an attorney with a stellar reputation should be a priority.

Why Choose Our Home Loan Modification Lawyers

At Covert Marrero Covert, our home loan modification lawyers understand your frustration and stress in searching for trustworthy legal aid for your loan modification. We have years of experience and client testimonials that prove our trustworthiness and can help you find affordable solutions that can work for you. Get in touch with us for a consultation today at our offices in Warrenville, Schaumburg, or Naperville, IL.

How Long Does a Foreclosure Stay on Your Credit Report?

A foreclosure on your assets can be the absolute worst thing that can happen to your credit report. However, if you default on your mortgage one too many times, you will have no choice in the matter. What is devastating is a foreclosure can remain on a credit report for seven (7) years from the date of the first missed payment. It can seriously bring down your credit score as well, which can compromise your ability to get a loan in the future. Typically, a default notice arrives in 60 or 90 days when you fall behind on your mortgage payments. An Illinois foreclosure attorney will tell you the process initiates when the complaint to foreclose is filed by the lender.

How a Foreclosure Affects Credit

A foreclosure can knock your score by as much as 400 points, but there isn’t a consensus on the exact amount that is deducted. Each crediting agency has its own scoring algorithm, which it keeps secret. Even if your agency has notified you of your score, it may not be the score the three main credit agencies maintain. In other words, even if your history is the same on all three, your score may not be the same.

That’s because each company has its own rules and regulation for every piece of information that is present on a credit report. One may focus on open collections while another may focus more on missed credit payments.

Whichever company or lender you go with, if you face foreclosure, bouncing back from it should be your priority. It is not the end of the world, but it can be a nightmarish experience nonetheless. The first thing you need to do is to see if your reports had any mistakes in them. If you spot several, you can file a dispute and have it corrected. By doing so, you can ensure a loan application doesn’t get rejected later and help you get your life back on track.

Hire an Illinois Foreclosure Attorney

Receiving a foreclosure notice can be one of the most devastating events anyone can go through. This is where our foreclosure attorneys can prove invaluable. At Covert Marrero Covert, LLP, we provide moral and legal support to clients who are facing this issue and help them find real solutions. Get a ‘foreclosure attorney near me’ in Naperville, Schaumburg, and Warrenville, IL today by getting in touch with us for a consultation.

3 Considerations You Should Make Before Buying a Short Sale in Illinois

Short Sale Indiana

When a property sells for less than the full amount owed, that means it has been ‘sold short’ or is a short sale. The process is known for being a great option for homeowners who wish to sell a property that has fallen in value. It is a good way to avoid foreclosure as well as all of the problems that come with it.

Each short sale is different and has several outcomes. To ensure you benefit from positive ones, here are some things you should do when you are searching for a short sale to buy:

1. Locate the Ideal Property

If you see a house in the listing that is priced considerably lower than ongoing market prices, chances are that the seller is trying to attract buyers for a short sale. Get in touch with the homeowners to confirm first but be cautious.

Several homeowners end up listing their property before they have permission from the bank to do so. This is vital because the bank ultimately sets the price. If that is the case, you will have to face a lengthy negotiation process. Chances are you will end up with a price point that will not give you a return on investment.

2. Research the Property

Examine the property before you make any purchasing decision. Ask the owners to provide documents on any unpaid back taxes, liens, etc. Plus, also determine how much the property will be worth once it is fixed up post-sale. You may also have to visit the county clerk a few times. Those efforts will help you get a complete picture of the property before you buy it so you will know exactly what you are paying for.

3. Involve the Seller

The seller or the property owners who are the sellers must inform their lender that they cannot pay off the remaining mortgage amount. At this point, it is important to realize that the seller is not going to profit from the sale. If you are trying to purchase a short sale from a seller who wants a commission for facilitating the sale, back out immediately.

If you wish to short sell your property, you should hire reliable real estate attorneys who specialize in that process such as the ones at Covert Marrero Covert, LLC. We are experienced in negotiating with mortgage companies to help sellers avoid pending balances and to ensure they can walk away with complete peace of mind. We have been representing clients in Schaumburg, Warrenville, and Naperville, Illinois for years. Get in touch with us today.

What You Should Know About Chapter 7 Bankruptcy

If your debt is greater than your current income and you appear headed into further debt, declaring bankruptcy is an option you should consider. Chapter 7 can help clear away several unsecure debts, which can bring your finances back on track. While it can have a negative effect on your creditworthiness, filing can be a feasible option if your home is facing foreclosure.

Who is Eligible for Chapter 7 Bankruptcy?

In order to quality for this bankruptcy you:

Need to complete a credit counselling course from an approved agency at least 180 days before you file.
Cannot have filed for Chapter 7 bankruptcy in the past eight (8) years or Chapter 13 bankruptcy in the past six (6) years.

Also, the average of your monthly income in the past six (6) months must be less than the income of a household that is the same size as yours or you will have to clear a means test. This will determine if your disposable income is sufficient enough to make partial debt payments to unsecured creditors.

The Means Test

The decision to file for bankruptcy is not yours alone. You will also have to clear a means test ordered by the court to determine whether you are eligible for Chapter 7. As previously mentioned, if you earn less than the median, you are eligible.

In fact, even if your income is higher than the median, you may still qualify after allowable expenses are discarded. Ultimately, if the final calculation shows you have enough money left over after expenses to pay off debts, you may be allowed to file Chapter 13.

Debts Chapter 7 Bankruptcy Can and Cannot Erase

Chapter 7 bankruptcy can do away with dischargeable debts such as medical bills, car loans, utility bills, credit card debt and judgements from debt collectors. However, it cannot erase debts pertaining to child support, alimony, student loans and debts you owe the government, such as traffic tickets and tax debts.

Before you file, make sure you are actively knowledgeable on your debt payments to increase your chances of qualifying. If you are looking for an attorney to help you out, get in touch with ours at Covert Marrero Covert, LLP today. We offer personalized services in Warrenville, Schaumburg or Naperville, Illinois. Get in touch with us for a one-on-one consultation today. We are also accepting virtual conferencing appointments via telephone and video conferencing.

DUI Penalties and Laws That You Should Be Aware Of

You are heading home after a night spent partying with friends and are reasonably drunk and are found behind the wheel by law enforcement, you can expect a hefty fine and even jail time for driving while intoxicated (DUI) However, very few people actually know the repercussions of driving under the influence in Illinois.

DUI in Illinois

According to Illinois law, the following are ways a person can be considered driving under the influence:

Driving with a blood alcohol content (BAC) of 0.8 or higher
Driving while you are under the influence of drugs, which prevent you from driving safely.
Driving while under the influence of several intoxicating substances making you a hazard on the road.
If there are indications in your blood, urine and breathe that you have consumed an intoxicating substance illegally.
That there are traces of cannabis or THC in your blood.

Criminal Penalties for a DUI

Penalties for DUI in Illinois vary, depending on the circumstances of the arrest and conviction. These circumstances may include the driver’s age, the driver’s BAC level, whether the driver was transporting a child under age 16, whether the driver was driving the wrong way on a one-way road and whether the driver has previous DUI convictions. Any DUI offense resulting in felony charges is classified as Aggravated DUI.

First Conviction

The first DUI conviction is a class A misdemeanor in Illinois. If convicted, you will receive a minimum revocation of driving privileges for one year (two years if driver is under age 21) and suspension of vehicle registration.

A fine will set you back $2,500, which is the maximum amount. However, most first-time offenders must pay $500 if their BAC is 0.16 percent or higher and $1,000 if you have a passenger who is younger than 16 traveling with you in your vehicle.

If you also receive community service as part of your DUI sentence, you need to complete 100 hours as a first time offender. If you have a passenger younger than 16-year-old passenger traveling in your vehicle, you need to complete 25 days of community service in a program benefiting children.

Unlike some states, Illinois does not have a ‘look back’ period. In other words, if you are convicted of a DUI and repeat the offense, it will be considered as a second DUI – one no matter how many years pass between it and the first conviction.

If you are looking for an attorney in Warrenville, Schaumburg or Naperville, Illinois who can defend you in your DUI case, get in touch with us at Covert Marrero Covert LLP today. Besides defending you in court, our attorneys can also help you secure a driving permit to replace the one that was confiscated. It will allow you to drive under special circumstance. Get in touch with us for a consultation today.