Foreclosure Defense Attorney | Covert Marrero Covert LLP

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.

What You Need to Know About Foreclosure Laws in Illinois

Foreclosure proceedings across the U.S. are based on a complex framework, which works around specific rules, laws and regulations. In Illinois, these are determined by the Illinois Code of Civil Procedure 735 ILCS Article 5, which deems lenders can sue borrowers who do not pay on time.

Many issues – including divorce to the death of a loved one, may have prevented you from making your mortgage payments on time, but that doesn’t mean you cannot fight it. As a borrower, you need to understand how the process works, as this will help you to preparing yourself for foreclosure or preventing it from happening.

How Foreclosures Work

In Illinois, mortgage payments must be paid on the first of every month, but if you can pay before the 15th, the payment will not be disputed. However, if it is processed after the 15th, you will have to pay a late fee.

If you also fail to pay the following month as well, you may receive a notice from the owner ordering you to pay in 30 days or opt for loss mitigation. You will face legal action with a second notice. If third payment is not made, the owner will file for foreclosure of the property. In Illinois, these are judicial notices, so you will get a court notice for not responding, which you will have to answer in 30 days.

If you fail to do this as well, the owner or foreclosing party will have grounds to sell the property at a foreclosure sale. However, if you decide to answer the summons by filing an answer and raise a defense, they may ask for summary judgment from the court in its favor. If their request is granted or your case is deemed invalid in court, the home will be foreclosed.

Receiving a notice for foreclosure can be one of the most stressful experiences in your life. The good news is you don’t have to go through the process alone. With an aggressive defense attorney from Covert Marrero Covert by your side, you can benefit from solutions that may never occur to you.

Since time will be of the essence, we make sure your case is handled in a timely manner. This includes offering a free relocation service, which can help you get back on your feet after the case has been resolved. If you live in Naperville, Schaumburg or Warrenville, IL, we can help you navigate the process and pick the option that’s right for you.

Foreclosure Defense: Legal Terms You Should Know

Foreclosure refers to a legal process when a financial institution or lender initiates legal action against the borrower in order to recover the unpaid amount of mortgage loan. This legal action usually takes place after the mortgagor (or lendee) has stopped making payments as per their loan arrangement. The objective of foreclosure is to sell the property, which was offered as collateral for the mortgage.

If you are facing foreclosure, it can be extremely beneficial for your case to hire an experienced foreclosure defense lawyer. It is critical to educate yourself about legal terms regarding foreclosure defense, so you are better able to understand your case and ensure you and your lawyer are on the same page. Here are some of the legal terms you should know:

Legal Terms You Should Know

Mortgagor and Mortgagee – People always confuse these terms. A mortgagor is the person or entity who has taken out a loan by using the house they are purchasing as a collateral. A Mortgagee refers to the financial institution or lender that provides the loan to the homeowner.

Promissory Note – A promissory note, also known as a note payable, is a financial instrument called an IOU that is executed by the owner of the home when they apply for a mortgage. The mortgage arrangement results in a lien on their property, which allows the lending institution to protect their financial interests in case the homeowner is unable to make the mortgage payments.

Lis Pendens – Lis Pendens refers to the filing of a notice by the mortgagee to inform the homeowner they are initiating a legal action pertaining to the title and ownership interest in their home. It is a public record used to notify all parties who may have an interest in the concerned property.

Deed – A deed is a written document, which authenticates who is the owner of a property. It is an important legal tool that both the buyer and seller must sign to transfer the ownership rights to the new homeowner.

Secured Creditor – In cases involving foreclosure, the term secured creditor is used to refer to the financial institution or lender that provided funds to the homeowner so they can either purchase or refinance the property.

Default – The term ‘default’ simply describes a situation where a homeowner is unable to make timely payments, as per the agreed upon arrangement, with respect to their mortgage loan.

Facing Foreclosure: Do I Need A Lawyer?

When you are facing foreclosure, you have two choices: Either let your lender win or choose to fight the case. Fighting the case provides you an opportunity to avoid eviction and at least save your credit ratings, if not your home. If given sufficient time, a competent foreclosure defense lawyer might be able to work out a deal with your financial institution to avoid foreclosure, perhaps by negotiating a rearrangement of the mortgage agreement.

There are several alternatives available to prevent foreclosure, such as short sale, declaring bankruptcy and reverse mortgage. If negotiations do not work out, your foreclosure defense lawyer will attempt to seek these alternatives and devise a solid foreclosure defense strategy to ensure your financial, as well as legal interests, remain protected.

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

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.

Foreclosure Defense Tips that You Should Know

Facing a foreclosure in Illinois can be a daunting task without the help of an experienced foreclosure attorney. Although it is best to avoid foreclosure situations, here are a few tips that you should know in case you need to exercise foreclosure defense to get out of sticky situations:

Accept Documentation

Some people commit the mistake of not being vigilant about receiving notices and reach a position when it is too late to mount a defense. The first tip is to be always attentive, especially when you have even missed a single repayment. Contact your lender proactively and ask them if something can be done to remedy the situation before the 90-day period is achieved. Remember, you have this period where you can submit the missing payment and avoid problems.

The lender starts by sending you an initial notice for complying with the mortgage terms. You then reach a notice that initiates the foreclosure process. Accepting these notices on time give you the best chance of seeking an experienced foreclosure lawyer and preparing a strong defense. This certainly helps you with other tips as well.

Discuss with Lender

Discussing the foreclosure situation directly with the lender may help you in most foreclosure situations. Remember, the lender must wait for 120 days of delinquent behavior before filing for foreclosure. You can quickly discuss an earlier notice from your lender and find out you still have some time to remedy the situation by working out an agreement with the bank. In most cases, the bank keeps sending you notices to inform you of the missing payments.

Seek a Lawyer

The most important tip is to seek an experienced foreclosure lawyer immediately for preparing a defense. You should help your lawyer with all the documentation and the communication that you may have had with the lender’s representative. Since skilled attorneys are aware of the state regulations and the laws that govern foreclosure, they can prepare a suitable defense according to your particular situation.

You should ask your foreclosure lawyer any questions that you have in mind and they will have the answers ready for you. They allow you to relax and make up your mind how you want to get out of a foreclosure situation. Sometimes, holding onto a large mortgage may not be the right option, in which the next point may be advised by your lawyer.

Short Sale

A short sale is when you sell your house at a value lower than your mortgage with the permission of your lender. This is often the best solution for both sides, but you should only go for it if you have hired a foreclosure lawyer and have worked out the finer details of the process. This is important, since it will allow you to stay away from any surprises that may destroy your capacity to save your remaining assets. Typically, you still owe the remaining money to the lender but it is often waived off, based on your monetary situation.

Always remember that you must act swiftly for the best foreclosure defense. Contact Covert & Covert, LLP at (630) 717-2783 or online to schedule a free consultation today and let our foreclosure defense attorney help with your case.