At Risk of Foreclosure? Here’s What You Can do with Your Chicago IL Home

by May 11, 2022

Foreclosure rates in Illinois and the rest of the country are on the rise. At the beginning of the pandemic, there was a 13% increase in foreclosure filings nationwide, with Illinois being the state with the fourth largest increase with 9% more new foreclosures. Given that we’re not out of the woods yet in this unprecedented time, it’s likely that many homeowners may face financial hardship that can cause them to miss their mortgage payments for different reasons. 

For those at risk of foreclosure, you should consider all options before your lender starts the foreclosure process. If your home in Chicago, IL is one of your remaining assets, you may be thinking of ways you can use your home to prevent the risk of foreclosure. Here are some of the things you can do with your property to try to avoid foreclosure and pay off your mortgage debt. 

Rent Out Your Property

If you have a second home or a family member you can live with temporarily, or if you’re open to the idea of renting out a spare room in your home, you could opt to rent out a room or your entire home. This may be a good way to increase your income to help pay off your mortgage while keeping possession of your home. Many property owners rent out their properties and use the rental income to help pay off their mortgage. You might want to consider this until you’ve fully paid off your mortgage or are able to get back on your feet and manage all your expenses without the rental income. 

Becoming a landlord, however, comes with certain costs, roles, and responsibilities. There’s also no guarantee that you’ll instantly find a tenant to move into your property especially if you’ve already missed at least one mortgage payment. The risk of nuisance tenants can also incur additional costs over time. 

Discuss Financial Hardship with Your Lender

Illinois has laws on the foreclosure process that your lender has to follow if they want to pursue foreclosure. The process is long, exhaustive, and costly, which is why most lenders see foreclosure as a last resort to recoup their losses. This is why, before reaching the 120-day minimum period from a borrower’s first missed payment, many lenders reach out to delinquent borrowers and offer financial hardship solutions. 

Your lender may offer several solutions to help you keep your home while meeting your payments. This can include pausing your mortgage payments until you get back on your feet, lowering your monthly payments and extending your repayment plan, and completely restructuring your repayment plan. However, keep in mind that not all lenders provide all these options. But if your lender is reaching out to help, it’s a good idea to take the opportunity to work with them. 

Sell Your House

Depending on the equity you have on your property, you might be able to sell your home and then use the proceeds to pay off your debt. However, time is of the essence in determining how you can sell your home. If you’re within the 120-days from your first missed payment to your lender sending a notice of foreclosure, you’re still able to sell your house on your own terms. Once they’ve sent you notice, you’ll need your lender’s approval to conduct a short sale. This type of sale may not fully get you off the hook from your debt. 

Should you decide to sell, you’ll need to find a buyer, close the deal, and receive your money within that 120-day window. Homes in Illinois take an average of 82 days to sell on the market, which gives you a very tight window that can put you at risk of foreclosure. But if you skip the real estate market and sell directly to a cash home buyer, you can receive an offer in as little as 72 hours and close the deal within a fraction of the market’s average. 

Ready to Sell Your Home? 

At Onyx Homes LLC, we understand the time constraints homeowners have if they want to sell their homes to avoid foreclosure. Rather than listing your property on the market, you can sell your home to us directly and close the deal within a fraction of the time. We buy houses in Chicago, IL for a fair price and can provide quick, convenient, no-obligation offers to help you with your situation. 

Contact us today to schedule your property viewing and receive a fair cash offer on your home within 72 hours or less. 

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