Deed in Lieu Illinois lawyers protecting homeowners’ interests in pre-foreclosure deals
No one wants to lose a home, but sometimes it is unavoidable. There are, however, mortgage exit strategies besides foreclosure. The attorneys at the Law Office of Brian Covert in Naperville can determine if your options include selling your home through a short sale or giving it back to the lender through a deed in lieu.
We help you take the initiative to control your situation. You can count on each lawyer at our firm to work hard and protect your rights.
Should you consider a short sale?
A short sale allows you to sell your home at current market value to satisfy the mortgage debt, even though the sale proceeds are less than you owe on the loan.
If you were unable to obtain refinancing and a home loan modification did not help you accomplish your goals, or if your house is now worth less than the mortgage, a short sale may be the right choice for you.
In fact, a short sale is preferable to foreclosure in many ways, not least of which is that you may be able to obtain a new mortgage much more quickly. From the lender’s perspective, a short sale is attractive because such homes do not become part of the inventory of foreclosed homes. For that reason, many lenders offer short sale incentives ranging from $1,000 to $25,000 to encourage you to sell your home.
Do you qualify for a short sale?
Every mortgage lender has its own rules for permitting a short sale. In general:
- Your home’s market value must have dropped below the unpaid balance due the lender.
- The mortgage must be in or near default.
- You must suffer from financial hardship, such as job loss, divorce, illness, death, or bankruptcy.
- You must not possess assets that could be sold to cover the mortgage.
How a short sale works in Illinois
The short sale process begins with a negotiation with the bank. As licensed title agents, Naperville lawyers Brian Covert and Sadia Covert possess considerable experience persuading lenders to permit a short sale. We also possess in-depth knowledge of the real estate market and short sale process in DuPage, Will, Kendall, Kane, and Cook Counties.
By putting our lawyers on your side, you can get the relief you need while also being ensured that you are sheltered from deficiency judgments, which are judgments in favor of your creditor. To initiate a short sale, you must first find a realtor who is experienced with short sales. We work with a team of short sale realtors and title agencies that streamline the process to make it as easy on you and your family as possible.
Your realtor determines the current market value and lists the property for sale. Once you receive a purchase offer, our short sale attorneys help you complete the loan servicer’s paperwork to finalize the arrangement and free you from your mortgage in DuPage and Will Counties.
What is a deed in lieu?
In some circumstances, a lender will not approve a short sale, or your short sale may not produce a purchase agreement. In this case, you can turn your house back to the bank and the bank, in return, clears your mortgage.
This alternative to foreclosure can be particularly beneficial if you have no equity in your home. Many loan servicers offer relocation cash incentives to you if you offer deeds in lieu of foreclosure.
To ensure that you are not charged for deficiencies or unexpected tax liabilities, it is in your best interest to work with a short sale attorney at our Naperville law firm who has experience dealing with deed in lieu transactions.
Rest assured, if foreclosure is imminent, we also possess the drive and considerable skill in foreclosure litigation to protect your interests.
Creative solutions to avoid foreclosure in Illinois
When you need options for getting out of your mortgage, the Law Office of Brian Covert can help. Contact us online or at 630-717-2783 to schedule a free confidential consultation to discuss your situation. We can accommodate off-site and off-hour appointments, and we have offices in Naperville, Warrenville, and Schaumburg, Illinois. In addition to English, attorney Sadia Covert speaks Urdu and Hindi.