What is Foreclosure in Crystal Lake, Illinois?

Find the right Foreclosure Bankruptcy attorney in Crystal Lake, IL

Foreclosure is the legal process by which the lender in a mortgage arrangement takes possession of the property (typically a house) that secured the loan. This is done when the Crystal Lake, Illinois debtor has repeatedly failed to make their payments. When a house is foreclosed, it is typically sold at auction shortly thereafter. This is because banks typically want to get rid of the property as soon as possible, even if it means losing some money, and an auction is an easy 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 reasonable effort to get a decent price at the auction, and that any proceeds above the balance of the mortgage go back to the borrower. In many states, original mortgages (as opposed to refinanced loans) are "non-recourse" loans, meaning that the most the lender can collect is whatever the foreclosed property sells for. The bank cannot go after the borrower for the balance, if the sale nets less than the amount due. You should consult a lawyer in Crystal Lake, Illinois to learn the details of the law here. You should also know that this rarely applies to loans which have been refinanced.

How Can I Avoid Foreclosure in Illinois?

First, and most importantly, you should not ignore the issue. Failing to respond to foreclosure calls from your lender will not make a problem go away. You should stay in touch, and be forthright with, your creditor as much as possible. You should remember that banks in Crystal Lake don't want your house. While the foreclosure process can be devastating for the homeowner, it's no walk in the park for the bank, either. They expected to make a profit through interest on the loan paid over time, and foreclosure is a last resort, allowing them to cut their losses and move on. If you are forthright with them, lenders will typically try to accommodate your changed financial situation, to avoid a default on your part, and the necessity of foreclosing on their part.

If you can't reach a solution with your lender, there are other options. You could, for example, try a "short sale," which allows you to sell your house for whatever amount you can get, and use the proceeds to pay your mortgage. If the house sells for less than you owe, the bank will get the proceeds of the sale, and the rest of the debt will be forgiven. There is also the option of a "short refinance," which forgives a substantial portion of your mortgage debt, and refinances the rest.

How Can A Crystal Lake, Illinois Attorney Help?

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

Talk to a Bankruptcy & Finances Law Attorney now!

Life in Crystal Lake

Crystal Lake is located in McHenry County, Illinois. It is a suburb of Chicago.

Being so near Chicago, Crystal Lake residents have the vast Chicago legal force for all their legal matters. Chicago is home to large firms, as well as mid to small size law firms.

For some great shopping and dining, Crystal Lake Park District is the place to go. Other popular sites include Northwest Herald, Walkup Road, Main Beach, Lakewood, and the Dole Family mansion.

All in all, Crystal Lake offers small town charm with the big windy city nearby!

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