Foreclosure notice of default in Illinois – What is it?

What’s a Foreclosure Notice of Default, and How Does It Work?

If you’ve received a foreclosure notice of default in IL, you have more options than you might assume. While no one ever wants to see such a document, there are actions you can take once you consult with a professional. Until then, we’ll go over the basics of what to do before your home goes through the foreclosure process so you know how it works.

Step 1 – Anyone with interest in the property receives a notification

A foreclosure notice is only the initial step, not the final judgment for starters. The law in Illinois states that anyone who has an interest in the property needs to receive an official notification that foreclosure proceedings have begun. Essentially, an “interest” means that all mortgage lenders, lien holders, and anyone else owed money (i.e., unpaid contractors) must receive the notification for the foreclosure to be legal. Otherwise, the courts cannot move forward until everyone is on board.

It may not seem like it’s a blessing in disguise, but it is because this notice actually protects consumers from speedy, illegal evictions. Everyone, especially homeowners, is entitled to due process. Sometimes, the proceedings aren’t nefarious at all but rather an extremely unfortunate miscommunication. It’s rare, but it does happen from time to time.

There’s also a stipulation that the foreclosure notice must be in a prominent place on the property, or the foreclosure notice of default can be published in a newspaper. Either way, the first step is informing all parties before moving on to the next stage, and the default notice is a vital first step.

Step 2 – Don’t wait to take action because you have limited time to prepare

The next step is to take action and not wait to contact a housing counselor who can explain your rights as a homeowner in greater detail. Without a doubt, it’s a stressful meeting, but it’s necessary that you stay calm and don’t panic since you won’t lose ownership of your home overnight. Yes, it’ll take time, yet that doesn’t mean you should procrastinate. Take advantage of your rights instead!

The good news is that most lenders will at least try to work with you up to a certain point. After all, the economic situation in the US remains uncertain, so it’s understandable if you’ve fallen on hard times during the COVID-19 pandemic. Above all, know that you’re not alone, but you can’t wait around for a solution to present itself; you have to pursue it to delay or stop foreclosure altogether.

Step 3 – Educate yourself about the foreclosure process

You’ll also want to educate yourself about the foreclosure process in IL. You may not know that you can sell a house in foreclosure until the lender finally exercises its right to put the property up for auction. But until then, you can get cash for your house in Illinois since the real estate market still favors sellers at the time of this writing. No matter how you look at the numbers, there simply aren’t enough available homes for sale, keeping existing home prices historically high.

The catch is that you may not get as much for the property as you anticipated, which is why selling a house in foreclosure is risky if you try to do everything on your own. Despite the pandemic, home values keep going up, yet buyers know that foreclosures should cost less than comparable properties. That’s basically why it’s so hard to get a good deal on a foreclosed property when you’re the one selling.

Step 4 – Use all resources available to you

We buy houses in foreclosure, but it’s always best to seek legal advice before moving forward. The laws about foreclosure in this state are intricate, to say the least, so try to take advantage of any non-profit and government programs. No matter what, the idea is to avoid losing your home by taking it out of foreclosure and into good standing with your mortgage lender. You need all available resources to do that successfully.

If you live in Chicago, you can dial 311 and find a housing counseling agency, which will explain all of your options. Aside from that, you can also find a HUD-certified housing counselor by calling the HOPE HOTLINE – 1 (888) 995-4673. You may be able to modify your home loan or refinance it if you qualify for assistance.

Step 5 – Stay in contact throughout the process

The truth is that mortgage lenders don’t necessarily want the property. Instead, they want the money the property is worth on today’s market because home prices are only rising. It’s not a guarantee, but it is possible to bring your mortgage back in good standing and keep your home. If you still need help, we can pay cash for your house in Illinois so that you can move on.

We might be able to make a short sale, or we can help you with back-rent situations. You may not know that you can still legally live inside your home while it’s going through the foreclosure process. You have rights no matter what, and that’s why you need to stay in contact with all parties at each step because too many homeowners give up and wave the white flag when they don’t have to quit.

Ultimately, a foreclosure notice of default isn’t the end of the journey but rather a necessary first step. If you’d like to know more about selling a house in foreclosure, we’d be glad to help answer your questions.