The Foreclosure Process: What Actually Happens


The threat of foreclosure can be the last straw that encourages someone to consider bankruptcy. A bankruptcy filing can help in some cases by forestalling the foreclosure and giving the homeowner more time to work things out. Yet bankruptcy is not the ‘silver bullet’ many people are hoping for. In order for bankruptcy to be of any help in preventing foreclosure, timing is everything.

So what actually happens in the foreclosure process? How does the homeowner go from property owner to someone looking for a place to rent? There are different rules depending on the state one lives in, but the process is fairly similar across-the-board. The first thing to know is the difference between the judicial and non-judicial foreclosure:

  • Judicial – The judicial foreclosure is one that can only be approved by a court. Lenders must file official Complaints, borrowers have time to respond, and the court eventually makes a decision regarding enforcement of the bank’s lien.
  • Non-Judicial – A non-judicial foreclosure requires no court intervention. It can be conducted based on deeds of trust that gave the power of sale to trustees in the event of mortgage default.

In ...

Appeals Court Order Could Hamper Future Foreclosure Defense


A recent ruling handed down by the District Court for the Southern District of Florida could have far-reaching effects in U.S. bankruptcy proceedings if other courts follow suit in similar cases. The first-of-its-kind ruling could hamper future attempts to defend against foreclosure in a chapter 7 bankruptcy proceeding.

The case in question, Failla v. Citibank, arose when a Florida couple involved in bankruptcy proceedings attempted to defend themselves against a foreclosure lawsuit filed by their mortgage lender. The couple had originally agreed to surrender their property under the bankruptcy plan but then decided to defend against the foreclosure after the bankruptcy trustee abandoned the property. Attorneys for the couple maintain...

I Am Facing Foreclosure – What Are My Options?


Not being able to afford monthly mortgage payments is the stuff of nightmares. As the phone calls and letters threatening foreclosure continue to mount, the very thought of losing your home can be so stressful that it causes physical illness and strained relationships. If you are facing foreclosure, the first thing you need to know is that you do have options.

The one thing you should absolutely not do is ignore the problem in the hope that a solution will appear on your doorstep. It will not. However, if you are willing to put some effort into a resolution, there are ways to address the foreclosure issue so you can get on with your life. Below are your five primary options.

1. Contact Your Lender

The very first thing any homeowner sh...

I Have a Large Medical Bill but Good Credit, Should I File Bankruptcy?

Whether you should file bankruptcy over one large medical bill that you are having trouble paying depends on several factors, including whether you can handle the debt outside of bankruptcy, or not.

If you have good credit, the bankruptcy will definitely cause it to dip. However, if you can’t pay the hospital or medical bill, you’ll start to get late-payment notices and the medical provider may even sue you and get a judgment — neither of which is good for your credit. And you may eventually face wage garnishment or other collection actions.

If you cannot settle the debt and it looks as if the creditor may pursue you for payment, then your good credit is going to take a hit anyway because a collection action will show up on your credit report. And if the provider sues you and gets a judgment, it can garnish your wages or take other collection action.

What Is Going to Happen if I Owe Back Property Taxes?

Local governments charge property taxes against real estate that’s owned in their jurisdictions. The government uses property taxes to pay for services in your neighborhood, such as schools and emergency personnel. If you don’t pay your property taxes on time, the tax collector can use various collection tools to get the money owed, and you potentially could lose your property.

How to Rebuild Your Credit after Bankruptcy- Fast!

It’s about as popular as a root canal or a blown tire on the freeway. Yet like both of those dreaded occurrences, filing for bankruptcy is commonplace in modern America. In 2013 1,107,699 individuals and businesses in the U.S. had to file for bankruptcy according to government data. While it’s pretty safe to say that not many of the folks who filed for Chapter 7 or Chapter 13 bankruptcy were eager to do it, it’s worth remembering that bankruptcy is by no means a financial death sentence. After all, bankruptcy protection is designed to provide people and companies with a way to discharge at least some of their debts and start over. And one of the very first steps to reboot your financial life involves rebuilding your cre...

How Does a Foreclosure or a Short Sale Affect Your Credit Score?

There are several ways a foreclosure or short sale affects your credit score. If done correctly, a short sale can have less of an affect on your credit score than a foreclosure.

Here are several ways a foreclosure affects your credit score:

  • The late payments that precede a foreclosure have a big impact on your credit score.
  • FICO, the agency which calculates credit scores, guards their scoring system carefully, but it is estimated that a foreclosure can drop your score anywhere from 175 – 300 points.
  • The foreclosure will remain on your credit report for ten years.

If possible, consider alternatives to a foreclosure, such as a short sale or deed-in-lieu of foreclosure.

Read more…

7 Ways the New Congress is Seeking to Water Down Financial Rules

The House attempted to pass a bill Wednesday to roll back or ease nearly a dozen requirements from the 2010 Dodd-Frank financial law and the 2012 Jumpstart Our Business Startups law, that aimed to make it easier for smaller companies to raise cash. The measure failed by a vote of 276-145, six votes short of the two-thirds needed to pass under a special procedure known as “suspension” in which non-controversial legislation can advance with limited debate. House Republicans are almost certain to try again to pass some or all of the bill’s measures. Here’s what some of the key provisions would have changed. 1. Give banks until 2019 to comply with provisions of the so-called Volcker rule that they divest from their C...

5 states with the highest foreclosure rates

Although the housing market has been slowly recovering, foreclosures are still plaguing some markets. There were 115,830 foreclosure filings in April 2014 or 1 in every 1,137, down 20% from 144,790 for the same period last year, according to data released Thursday by RealtyTrac, a real-estate data firm. But they were still persistently high in some states, including Florida and Maryland. Bank repossessions in April increased from the previous month in 26 states and were up from a year ago in 16 states, including New York (up 142%), Oregon (up 91%), New Jersey (up 58%), Illinois (up 55%) and Indiana (up 52%).

The good news: This is sign that those markets are working through the final remnants of foreclosures left over from the recent hou...

Home Foreclosures Rise in Chicago After Lull

A surge of foreclosure filings over the past two months are threatening homeowners in Chicago. For almost a year foreclosures were on hold while mortgage companies sorted out the mess created by the robo-signing scandal.

In November 2011, one in every 579 homes was in foreclosure, according to RealtyTrac, a company monitoring foreclosure properties. In Illinois alone, one in every 427 properties was in foreclosure in November 2011, placing it fourth in the nation in the number of foreclosures. Cook County had the highest number of foreclosures pending in the state at 7,412 filings.

The sudden rise in filings may mean homeowners struggling to make their mortgage payments may need to pursue other options to save their homes. For some peopl...

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In order to provide convenience for clients throughout Chicago and Northern Illinois, we have offices in the following locations: 

Chicago • Schaumburg  • Oakbrook • St. Charles • Naperville • And More


We have office locations throughout the Chicago Area:

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All calls are routed through our Downtown office for your convenience.

Phone: 312-967-3159

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