Do you live in Chicago and are in the middle of a foreclosure proceeding? Maybe you know someone going through the Chicago foreclosure process. Either way, you want to arm yourself with as much knowledge as possible to avoid a foreclosure eviction.

Below, we share 3 Chicago foreclosure strategies to stop your foreclosure before it is too late.

3 Chicago Foreclosure Stoppage Methods

1. Short sale

One of the best ways borrowers in foreclosure can get out of this is to conduct a “short sale.”

The reason it’s called a short sale is that the lender has to sell the home for below the value of the unpaid mortgage.

A short sale differs from a regular sale because the money from the home’s sale goes right to the lender and not the seller. The homeowner is so far behind on their payments that the bank needs to sell the house to recoup the money they are losing when the owner doesn’t make their payments.

Short sales are almost always used when the homeowner is in significant dire straits financially, such as in the case of an upcoming foreclosure. Finding foreclosed homes and short sales in Chicago can be hard to do but will be great deals for buyers who can fix up properties well.

If you want to work with a team that can help you through the Short Sale process, please contact us today for a free consultation. We buy short-sale homes and can work with your realtor and you to purchase them.

2. Apply for forbearance

Housing in Chicago has always had its issues. But the pandemic created an even bigger problem when massive layoffs occurred in 2020. When some people weren’t able to pay their mortgage each month, the big question would be what happens if the banks foreclose on all these houses in Chicago? The answer was forbearance.

“Forbearance” is when a homeowner is not obligated to make their monthly mortgage payment for a specified time. The goal of forbearance is to allow the homeowner some time to get into a better financial situation without worrying about defaulting on their mortgage.

This has been an option in the past for homeowners facing foreclosure, but COVID made forbearance a household term for homeowners.

Requesting forbearance is a straightforward process. You call your lender and explain your situation. Then you explain how you want to request a temporary forbearance.

You may need to confirm some information for them, but the forbearance will typically start soon after you make the request.

3. Arrange a repayment plan

Repayment plans are just that: a set schedule makes it feasible for a homeowner to get caught up on their missed or late mortgage payments over time.

The past due amount owed to the lender is spread out over several months or years for you to bring the mortgage current and resume regular monthly payments.

This option is also less damaging for your credit score than a foreclosure or bankruptcy is and can be an excellent option for someone facing a short-term hardship.

You need to be able to qualify for a repayment plan by your lender first. If you do qualify, they will give you an agreement that you have to sign outlining the details of the repayment plan.

Repayment plans will generally add to your current mortgage payment to make up for the past due amount, so if you cannot make your mortgage payment currently, a repayment plan may not be the right option.

Chicago Foreclosure Final Thoughts

If you are tired of dealing with foreclosures and just want to get rid of your foreclosed home, we can help you. Contact us today at 847-710-7093. We provide cash, as-is offers on foreclosures and short sale homes.