It's official. Foreclosures are on the rise again. In January, foreclosures in Chicago shot up 13.9 percent from the month before, according to RealtyTrac in January. Industry experts had predicted this jump late last year amidst evidence indicating that mortgage companies had finally resolved their documentation issues that kicked off the robo-signing scandal of 2010.
In total, 13,750 homes received a foreclosure notification in January. Illinois was one of only four states to see the numbers of foreclosure filings rise from last year. According to RealtyTrac Chicagoans should expect numbers like this to continue. This may leave many people wondering about their options for stopping home foreclosure in Illinois.
People who want to stay in their homes but are short on funds to pay mortgage arrears typically take one of two options. Either they try to arrange a loan modification with their bank or they look into bankruptcy.
Although both Chapter 7 and Chapter 13 bankruptcies will stop a foreclosure action temporarily, most people who are trying to save their homes through bankruptcy will pursue a Chapter 13 bankruptcy. People often choose Chapter 13 bankruptcy because it offers several advantages, such as stripping off a second mortgage, freeing up needed cash for overlooked expenses.
The appropriate solution will be different for everyone. Before making a decision, it is important to understand the pros and cons of loan modification and bankruptcy. People looking for straight talk often benefit from speaking with an experienced Chicago bankruptcy attorney who has also had success negotiating loan modifications.
Source: www.suntimes.com, "Foreclosures in Chicago Area Rise in January," Francine Knowles, 16 February 2012