Solutions For Distressed Homeowners

Guiding Distressed Homeowners In Illinois Looking To Either Save Or Sell Their Property

For close to 20 years, we at Citizens Law Group, LTD have been helping homeowners who have fallen (or are about to fall) behind in mortgage payments. Our firm helps to guide homeowners through the process and decide what option is best for them, with a focus on providing homeowners with all options available, which allows homeowners to make a fully informed decision when deciding how to resolve their issues. We assist homeowners with traditional sales, foreclosure defense, loan modifications, short sales and bankruptcies, so we are not going to steer a homeowner towards just one particular option. While a bankruptcy firm might present bankruptcy as the only option, we are able to offer a broad array of solutions and let our clients decide which option is best for them.

During the housing crash of 2008, when there were a lot more distressed properties, we would routinely consult with homeowners who received bad advice and had made decisions that were not fully informed or in their best interest because they were only presented with one option. On many occasions, we consulted with people who could not afford their property and were presented with bankruptcy as the only option, even though they could have avoided bankruptcy and protected their credit. We also consulted with people who did not have sufficient income to afford their mortgage due to hardship but wanted to save their home but were not properly advised as to how to restructure their finances to qualify for a loan modification, or properly advised of the timeframe the homeowner had to make these adjustments. Our office has processed thousands of short sale and modification applications, and we know what the banks need to see in order to approve a loan modification or a short sale and leave the homeowner in the best possible position moving forward.

The most heartbreaking cases that we have seen are where a homeowner had no realistic way to save their property, but they emptied their 401(k) to try and save the home – only to inevitably end up back in foreclosure. In many of these cases, the homeowner would have been able to sell their property, keep their equity and protect their retirement. Instead, they were only given one option and ended up with no house, no savings, and no retirement account. These are the results we seek to avoid. In a situation like this,, we would typically suggest liquidating so that the homeowner can receive the equity from their house.

If a homeowner does not have equity in their property, we might advise the homeowner to allow the bank to start the foreclosure process and work on a short sale. This could allow a homeowner to stay in their home mortgage free and, upon completion of the short sale, owe nothing to the bank. This would allow the homeowner to save money for a down payment on a more affordable house with more affordable monthly payments. For instance, if a homeowner’s monthly mortgage payment is $2,000 but they can only afford $1,500 per month, the homeowner would be able to save $1,500 per month throughout the foreclosure and short sale process. If this process takes 18 months, the homeowner would be able to save $27,000 to be used towards the purchase of a new home. In other words, the homeowner would be able to live mortgage free for 18 months and walk away owing nothing to their lender if the short sale is completed successfully.

In every situation, we offer homeowners a game plan that will put them in the best position.

Distressed Property In Illinois

A distressed property is typically a property where a homeowner is unable to pay their mortgage, a property is in foreclosure, or where a homeowner owes more on a property than it is worth. Any situation where you’re in danger of losing your house makes a property distressed.

For example, if you owe $500,000 on a mortgage and it is worth $300,000, the property is distressed because it is $200,000 under water. Similarly, if your house is in foreclosure even though it is worth more than you owe, it is a distressed property. Your property can also be distressed if you have unpaid property taxes on your home. In Illinois, a third party can buy your property taxes and take ownership of your property if they are not redeemed. Even if your property is worth millions of dollars and you have no mortgage, you can still lose your property over unpaid tax bills.

To obtain more information on Distressed Property In Illinois, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (312) 313-1033 today.