Facing a foreclosure in Chicago, Illinois is scary. The whole ordeal can be overwhelming and you might just accept the situation and let it unfold. But don’t give up! Even if you’re served a notice of foreclosure, there are other solutions for you to settle your debt and maybe even keep your home.
Impact of a foreclosure in Chicago
You may think that a Chicago foreclosure is the end of the line when it comes to your mortgage – just let the process happen and get it all over with. However, things are more complex than that. If you let a foreclosure in Chicago happen, it doesn’t always mean that the problem ends when the house is taken from you.
The first thing is that foreclosure will have a great negative impact on your credit score. When you’re foreclosed on, your credit score takes a huge hit, making it harder for you to buy or rent a home in the future.
The next problem with a foreclosure in Chicago is that when the house is auctioned off and sold, it doesn’t always pay off the debt. A “deficiency” happens when the house is sold at a price lower than what you owe. The lender can seek a deficiency judgement from the court that will allow them to collect the amount from you.
What else can I do when facing foreclosure in Chicago?
When you start falling behind on your payments, seek comfort in the fact that it’s not the end of the line. A foreclosure can’t officially start until you’re more than 120 days past due on payments. Before you even reach that point, federal mortgage servicing laws require the servicer to contact you within 36 days of you missing payment to discuss your options to pay back the loan. These include loan modification, forbearance, or a repayment plan. This is your first chance to get back on track with your payments and prevent a foreclosure
However, if repaying the mortgage isn’t doable, another option is to sell your house in Chicago. Some don’t think of this, but it’s totally possible to sell your house before a foreclosure happens and use the proceeds to repay your debt. Through this, not only do you have a good chance of repaying your mortgage, but you also prevent the negative impact a foreclosure has on your credit score. This puts you in the driver’s seat when it comes to the foreclosure process.
While it may seem counterintuitive to sell your house in Chicago, IL, the goal here is to avoid the negative impact of the foreclosure and you set you up in a better spot financially. Take care of the debt properly, so you still have the option of renting while you save up again.
When selling a house in Chicago, you’ll need to work with a good agent who can help you sell it with the intention of paying off your mortgage. They can help you pinpoint the market value of the property, prepare it for selling, and also help you negotiate to make sure you close at a price close to the amount that you owe.
During this process, be sure to inform your lender of your short sale so that they can postpone any foreclosure action while your house is on the market. This will give you a little more time to find a buyer.
Since there is a time element here and you don’t have the comfort to wait for the perfect buyer, what happens when you start running out of time?
Selling to a professional homebuyer
In this case, the best solution is to consider finding a cash home buyer in Chicago, IL. Finding a cash home buyer presents you two unique advantages. First, dealing with a cash home buyer in Chicago, IL is a lot quicker than a normal buyer that will normally involve a lender. This means extra documents, inspections, and processing time. Secondly, a cash home buyer has a smaller chance of backing out from the deal since there’s no possibility of getting denied for the loan.
You can sell to a professional home buyer in Chicago, IL with companies like Onyx Homes, LLC. Onyx Homes can provide you a fair cash offer in just a couple of days in 3 easy steps. Call us today and see how we can help you deal with your foreclosure in Chicago, IL.
