Becoming a homeowner certainly took a lot of work - we know! But certain challenges could cause you to fall behind on your monthly mortgage payments. Unfortunately, that may lead to a foreclosure of your home which is difficult, legally complex, and could take a toll on your credit.
Fortunately, in Chicago, IL, you can avoid a foreclosure on your home using these effective tips:
A loan modification is an excellent option to avoid foreclosure if you’ve had an unexpected change in your financial circumstances. Typically, lenders will consider aspects that impact your ability to make timely mortgage payments, including:
An accident that resulted in disability or significant injury
Divorce, child support, and custody issues
Unexpected job loss that led to income decline
Sudden death in your family
Use Government Relief Avenues
You can check out government programs that help homeowners make mortgage payments and pay other home-related costs. For instance, eligible homeowners in Chicago who’re experiencing financial hardships due to the COVID-19 pandemic can get up to $30,000 through the Illinois Homeowner Assistance Fund (ILHAF) program.
If your financial circumstances warrant bankruptcy, a Chicago bankruptcy court could address your foreclosure. When you declare bankruptcy, your lender will be forced to discontinue any collections against you, including home foreclosure. But you’ll still be responsible for the debts you owe. The bankruptcy court can work with you to set up your repayment plan. However, it’s crucial to note that declaring bankruptcy may adversely affect your borrowing in the future.
We Can Help You Avoid Foreclosure of Your Home in Chicago, IL
The thought of losing a home after putting a lot of effort into it can feel devastating, not to mention the ugly mark it’ll leave on your credit. Fortunately, using the above-mentioned ways, you can avoid foreclosure on your home. Moreover, the experts at Ian Nelson | Real Estate can help you learn more about how you can avoid foreclosure of your home in Chicago, IL. Give us a call today to speak to one of our representatives.