What is Foreclosure in Champaign, Illinois?

Find the right Foreclosure Bankruptcy attorney in Champaign, IL

Foreclosure is the legal procedure by which the lender in a mortgage arrangement takes possession of the property (usually a house) that secured the loan. This is done when the Champaign, Illinois debtor has repeatedly failed to make their payments. When a house is foreclosed, it is usually sold at auction shortly thereafter. This is because banks usually want to get rid of the property as soon as possible, even if it means losing some money, and an auction is an simple way to do this.

In all states in the U.S., including Illinois, foreclosure by judicial sale is allowed. Under this system, the sale is overseen by a court of law, to ensure that the bank makes a good effort to get a reasonable price at the auction, and that any proceeds above the balance of the mortgage go back to the borrower. In some states, original mortgages are treated as "non-recourse" loans, meaning that, at most, the lender can take possession of the house in the event of foreclosure, even if it is worth less than the amount due. The bank cannot go after the borrower for the remaining balance once it sells the house. You should consult an attorney in Champaign, Illinois to find out if this is the case here. This usually does not apply if the mortgage has been refinanced.

How Can I Avoid Foreclosure in Illinois?

Most importantly, you must not dismiss the problem. Doing so will not make it go away, and will probably make it worse. You should stay in close contact with your bank, and be honest with them. One should remember that banks generally don't want to take your house in Champaign. They issued your mortgage expecting to earn a profit on the interest. Taking possession of, and selling, your house is a last resort for them. Therefore, if you are honest with them about your financial situation, they are likely to make reasonable accommodations to keep you from defaulting.

If you can't work anything out with your lender, or have become totally unable to make any mortgage payments, a "short sale" might be a good option. This allows you to sell your house for whatever price it can get, and hand the proceeds over to the lender. If the sale price is less than the balance of the loan, the rest of the debt may be forgiven. You may also consider a "short refinance" which allows a portion of the debt to be forgiven, while refinancing the rest, hopefully under better terms.

How Can A Champaign, Illinois Attorney Help?

If you think foreclosure is imminent, a good Champaign, Illinois lawyer may be your best hope for staving it off. Even if keeping the house proves impossible, a good attorney can minimize the financial effects.

Talk to a Bankruptcy & Finances Law Attorney now!

Life in Champaign

Not only in champaign the name of an alcoholic drink, but it is also the name o a city in Illinois. Champaign is located about 135 miles south of Chicago, west of Indianapolis.

Champaign is home to many start-up technology companies and the University of Illinois at Urbana-Champaign. Top employers include Kraft Foods, Parkland College, PlastiPak, Hobbico, Amdocs and Devonshire Group. Other employers include the United States Army Corps of Engineers, the Construction Engineering Research Laboratory, State Farm Research Center, Science Application International Corporation, Riverglass Inc., Tekion, Volition, Inc., and Yahoo!

The legal force also has a significant presence in Champaign. Thus, the legal needs of employers and residents can easily be handled by Champaign attorneys.

Popular attraction include the Tower at 3rd, the City Building, Campustown, the Art Theater, and Historic Virginia Theatre.

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