Many Illinois homeowners have fallen on hard financial times. The loss of a job, a cut in hours, a decrease in pay, or a change of interest on outstanding debt can all cause financial challenges. When individuals find themselves in these situations they may face bankruptcy and foreclosure. Fortunately, an experienced attorney can help these struggling people find debt relief. One way to do this is to utilize newly established court rules to help prevent foreclosure.
The Illinois Supreme Court has recently enacted a new set of rules that require lenders to exhaust all options to help homeowners before they can enact a foreclosure. These rules, which take effect March 1, will go a long way in helping struggling homeowners. To comply with the new rules, lenders must provide proof of the homeowner’s debt and evidence that mortgage modification is impossible. The Court also stated that those who are proactive in seeking to prevent foreclosure will likely be given more time. An attorney can help in this process.
When one is having trouble with repayment of a housing loan, several options exist to get the homeowner relief. A homeowner can seek refinancing and mortgage modification. These programs can lower the monthly payment amount, allowing the homeowner to get caught up on delinquent payments.
If home payments are being missed because of other outstanding debt, a bankruptcy filing may be in the individual’s best interest. In many cases, those going through bankruptcy are able to keep their homes while other debts are eliminated. This reset can give homeowners the fresh start they need to be able to remain in their home.
To eliminate debt, a struggling individual must be aware of her options. An experienced attorney can walk a debtor through all the options and advise as to which strategy is the best. Hopefully then, the individual will be able to remove the weight of financial strain from her shoulders and move on with life.
Source: ABC 7 Chicago, “New rules for foreclosures in Illinois,” Leah Hope, Feb. 22, 2013