How a Foreclosure Defense Lawyer can help you

If you are running behind your monthly mortgage payments and facing the risk of foreclosure, you will need to make a decision about whether you want to fight foreclosure proceedings or comply with the wishes of your bank or lending institution. Foreclosure would force you to vacate your property and also impact your credit rating negatively.

Therefore, it is imperative that you hire a foreclosure defense lawyer to prevent foreclosure either by the modification of your existing loan or extension.

How can a foreclosure defense lawyer help you?

A competent and professional foreclosure defense lawyer will exercise his professional expertise and judgment and will be able to represent your case much more effectively, which will strengthen your case.

Firstly, a foreclosure defense lawyer will file a notice of appearance, also known as NOA, with your bank and the court, which will enable him to officially represent you in the case. After the filing process is completed, the bank will provide information directly to your lawyer and he will manage all the paperwork on your behalf.

Secondly, your lender must have filed a foreclosure lawsuit against your home. Consequently, you may receive a summons from the court. The bank assumes the role of the plaintiff and you become the defendant party of the case.

Your lawyer will exercise your right to respond by stating your intentions to fight the case in order to save your home. Using his experience and knowledge, he will be able to highlight the weak link of the complaint, which can easily be ignored by a common person.

Thirdly, he will represent you and advocate on your behalf in the settlement conferences, if any, between you and your bank. It is an arrangement where both parties meet with a referee appointed by the court in order to come to a resolution. You cannot expect to face the bank attorney without a seasonal foreclosure defense lawyer as you will be comprehensively outmatched due to their professional experience and skills.

Finally, during the period when solutions such as loan modification are designed, your defense lawyer will use foreclosure defense strategies in order to save you from foreclosure. A knowledgeable lawyer can utilize different strategies depending on the circumstances and nature of your case to buy you enough time to give you a commanding position in the case.

If you wish to know more about this subject and speak with an experienced foreclosure defense lawyer, contact the offices of Covert & Covert LLP at (630) 717-2783 and schedule a free consultation session.

Short Sale – The Best Way to Avoid Foreclosure

Falling behind in your mortgage payments can land you in a troublesome situation. If you find yourself in such a situation, you can either wait for your lender to initiate foreclosure proceedings or opt for a short sale. Most lawyers suggest that although short sales are tricky to pull off, they are a far better option for the borrower than foreclosure. The embarrassment and negative impact on your credit score that comes along with foreclosure makes a short sale a more viable option. But a short sale can only be possible if the mortgager agrees to it.

Without the consent and permission of the lender, you simply cannot opt for a short sale and will be forced to go into foreclosure. Therefore, it is imperative that you convince your lender to agree to a short sale. Getting the assistance of a short sale lawyer can help you present your case to the lender in a more compelling and convincing manner.

How can a short sale lawyer help you?

Empowered by their experience, an attorney can build a case in favor of a short sale as opposed to foreclosure. By demonstrating to the lender that they can potentially benefit from opting for a short sale your lawyer can help you avoid a foreclosure.

One of the advantages for the lender in a short sale is the shorter recovery time which means they can recover their money sooner. As borrowers stop making mortgage payments as soon as a property goes into foreclosure, the lender will have to wait several months before they can recover their money. Whereas, the short sale allows both sides to settle their affairs in a short time frame.

Your short sale lawyer can also make the lender realize that you have legal representation and would devise a foreclosure defense if the lender decides to refuse the short sale. In most cases, lenders do not wish to waste their time in the litigious process as they are time consuming processes. Although, every case varies from one another, and only a short sale lawyer can advise you accordingly after carefully studying your situation and relationship with your lender.

What Is Real Estate Foreclosure and How Can You Avoid It?

In an ever increasing inflation and unstable economic conditions, most of us have to opt for loans to make ends meet. Expenses such as college education, business overheads or healthcare costs can force a person to mortgage their real estate property. In some instances, people mortgage their properties to pay off other debts or to start their business. Real estate property is used as collateral in a mortgage. This means that the entity, mostly banks, who lends the money holds the title of the real estate until the loan has been repaid entirely with interest.

In some cases, the lender is unable to pay the loan back which causes the lender to move towards foreclosure. Although a good foreclosure defense lawyer can help people avoid foreclosure, it requires making some smart decisions.

What is Foreclosure?

Before you devise a way to avoid foreclosure, you must first understand what it is. Foreclosure is when a bank takes possession of your property when you consistently fail to make your mortgage payments in a timely manner. In some cases even two missed payments can make your lender move towards foreclosure. In Illinois, foreclosures are enforced by the local courts after the lender approaches them. If the lender is successful in enforcing foreclosure, your mortgage property is sold, usually through a public auction, to recover the loan.

Deed-in-lieu – the final resort

Often used as a last resort, deed-in-lieu entails the voluntary transfer of the deed to the lender. This allows the lender to avoid public auction involved in foreclosure proceedings. But before opting for this final option, an attorney may advise you to short sale your home before the lender schedules an auction. Another option is to declare bankruptcy.

It is important to realize that your personal financial situation is a vital determinant in whichever form of foreclosure defense is best suited for you. Only an attorney who is experienced in matters pertaining to foreclosure can advise you on the best course of action.

If you have missed your mortgage payments and are facing the threat of foreclosure, contact an experienced foreclosure defense lawyer by contacting Covert & Covert LLP at (630) 717-2783.

Can My Disability Pay be Garnished in a Foreclosure?

To be living off of disability and facing foreclosure can create quite a conundrum. Will your lending financial institution’s decision to foreclose your property while you are solely surviving on social security impact your life? Yes. But in the case that the lender is not able to recover the amount you owe by selling the mortgaged property, will the court, under the garb of garnishment allow the lender to take your social security funds away? And do you need a foreclosure defense lawyer? These are the most common questions that run through the head of every person that goes through this hardship.

What does the law say?

In cases where the lender is unable to recover the money it is owed by the borrower by selling the mortgaged property, the courts have allowed lenders to seize money being given by third parties such as employers to satiate the debt owed by the person in question. Any good Foreclosure Defense lawyer would inform you that according to the Social Security Act, your social security payments cannot be withheld or taken by your lender under any circumstances. Therefore, there is no need to be worried about losing your social security or disability payments even if you are facing foreclosure. Your social security/disability payments are protected by law, and your lender cannot take them away from you.

Make the best of a bad situation

Facing foreclosure while you don’t have a steady source of income can make you feel quite vulnerable. Most property owners tend to get overwhelmed and make mistakes in their confusion and haste. But if you maintain your composure and decide to not give up without a fight, you could potentially turn the tide in your favor. Consult a veteran foreclosure defense lawyer to get the best advice according to your case. Every case is different from the other and only someone well-versed in the machinations of the legal system can provide you with the best course of action. Rather than being stunned by foreclosure, compose yourself and seek the best way out of a messy situation. Your social security disability payments are already protected by law, and you might be able to salvage your property if you play your cards well enough.

For further information and guidance or to schedule a free consultation session, contact Covert & Covert, LLP today at 630-717-2783 to speak with a qualified and experienced lawyer on this issue.

Foreclosure Defenses for Real Estate Property Owners

If you have defaulted on a mortgage for your real estate property, the creditor can decide to foreclose on the property and then sell it at a formal auction to the highest bidder. However, there are certain steps you can take to defend against foreclosure. It is critical that you retain a great foreclosure defense lawyer to support your case and help you understand the foreclosure process as well as following possible arguments.

Foreclosure process

Before considering foreclosure, your lender may send you a formal notification that you are defaulting on the debt. Such notices may indicate the amount you owe and the deadline for the payment to prevent the creditor to initiate the foreclosure process. It may also include language regarding ‘restarting’ or ‘curing’ the mortgage. Also, it has to be served to you within a certain timeframe as given by the state. If you fail to take defensive steps or lose the case ultimately, then your property will be sold to the highest bidder – usually the bank.

Loan modification

A mortgage provider must decide if you are eligible for a loan modification before foreclosing on your property. You have to be informed in writing of any loan modification or other options available that may assist you to retain the real estate property. In this situation, you must approach a home loan modification lawyer to help you with your case and come up with the best outcome. If a pending loan modification application is already there, the lender cannot foreclose on your property while this decision is under consideration.

Rights of redemption

You may redeem the sale upon paying all or a certain portion of the debt within a given time period.

Deed-in-Lieu of foreclosure

A deed-in-lieu of foreclosure is typically a formal deed instrument in which you voluntarily convey all interest in your real estate property to the creditor to satisfy the debt and avoid foreclosure proceedings. If you are thinking to opt for this step, you must approach a deed-in-lieu lawyer to help you with the process.

Short sale

You can choose to sell your property for a price lesser than the due debt. As soon as a short sale completes, you release the property from your lien in exchange for the property’s sale proceeds. However, you need to obtain creditor’s consent for the sale and provide documentation, including letter demonstrating the reasons for delinquency, financial statements, and evidence of income. Retain a short sale lawyer to help you with this process.

For more information or to schedule a free consultation, contact Covert & Covert, LLP today at 630-717-2783 to speak with an experienced attorney on your real estate concerns.