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Can a Loan Modification Help Me Avoid Foreclosure in Illinois?

Posted on in Real Estate

Cook County real estate attorney loan modification

There are many different types of issues that can cause you to struggle financially. For example, the loss of a job, an unexpected illness, or a disability could affect your ability to pay your ongoing expenses, or overwhelming debt could become impossible to manage. As a homeowner, these types of issues can be especially worrisome, since falling behind on your mortgage payments could lead your lender to pursue the foreclosure of your home. Fortunately, you will typically have options for defending against foreclosure, and an experienced real estate attorney can help you determine whether you can receive a loan modification that will allow you to become current on your payments and maintain ownership of your home.

Loan Modification Options

Depending on your circumstances, the details of your mortgage, and your ability to make ongoing payments, you may be able to negotiate with your lender to modify your loan in one or more of the following ways:

  • Forbearance - If you are temporarily unable to make your monthly payments, you may come to an arrangement with your lender to suspend your payments or reduce the amount you will pay for a certain period of time. These payments will need to be made up, and they will typically be added to the end of your loan.

  • Interest rate adjustment - If you can negotiate a reduction in the interest rate on your loan, this can save you hundreds of dollars on your ongoing payments. You may also be able to realize savings by switching from an adjustable-rate mortgage to a fixed-rate mortgage.

  • Lengthening the term of the loan - Increasing the amount of time you have to pay off your mortgage may allow you to reduce the amount of your monthly payments.

  • Capitalization of arrears - If you are behind on your payments, it may not be possible for you to pay the full amount owed along with interest and late fees. You may be able to negotiate with your lender to have the past-due amount added to the principal of your loan, ensuring that you will be able to make payments going forward.

  • Principal reduction - In rare cases, a lender may agree to reduce the total amount owed, and this can allow for the recalculation of monthly payments so that you can meet your ongoing obligations.

Contact Our South Side of Chicago Foreclosure Defense Lawyer

In many cases, mortgage lenders will work with borrowers to find ways to avoid foreclosure, since this can be a more financially beneficial option for everyone involved. If you are facing the threat of foreclosure for any reason, the Law Offices of Marques A. Eason, LLC can work with you to determine your best options, and we will help you negotiate with your lender to find a solution that will allow you to keep your home and maintain financial stability. Contact our qualified and dedicated Evergreen Park real estate attorney at 312-973-3755 to learn more about the services we provide.

 

Sources:

https://www.forbes.com/advisor/mortgages/mortgage-modification/

https://www.thebalance.com/loan-modifications-315514

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