What is Foreclosure in Oak Park, Illinois?

Find the right Foreclosure Bankruptcy attorney in Oak Park, IL

Foreclosure is the process through which the lender in a mortgage takes ownership and/or possession of the property that secured the original loan. This happens when a debtor in Oak Park, Illinois has repeatedly failed to make their payments. Foreclosure usually involves a forced sale of the house at auction. Banks usually want to rid themselves of ownership of the home as soon as possible, collect as much money as they can, and then move on.

In all states in the United States, including Illinois, foreclosure by judicial sale is an option. This allows the sale to be conducted under the supervision of a court, to ensure that the bank makes a good faith effort to get a fair price, and that the proceeds above and beyond the balance of the mortgage (if there are any) go back to the debtor. In many states, mortgages which have not been refinanced are "non-recourse loans." This means that, in the event of default, the bank can take ownership of the house and sell it; but if the sale price happens to be less than the balance of the mortgage, the lender cannot go after the borrower for the remainder. Because of this, some people have found that their best option is to simply walk away from the home if the mortgage is more than the house is worth. You should talk with an Oak Park, Illinois attorney to see if this state is one of them.

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 honest with, your creditor as much as possible. You should keep in mind that banks usually don't want to take your Oak Park home. They aren't in the real estate business, and expect to make money through interest on the loan, not by selling your house. If you are up-front with them early on, they will probably make a reasonable effort to accommodate your financial system if it will keep you from defaulting.

If no deal can be worked out, or the mortgage payments have become prohibitive, you might consider a "short sale". While the lender has to consent to it, many will take a moderate loss if it means avoiding foreclosure (which lenders generally treat as a last resort). This allows you to sell the house for whatever price it can fetch on the current market, and hand the proceeds over to the bank. If the sale nets less than the balance, some or all of the deficiency might be forgiven. You could also consider a "short refinance" which allows a chunk of the debt to be forgiven, and lets you refinance the rest.

How Can A Oak Park, Illinois Attorney Help?

If you are facing the possibility of foreclosure, a good Oak Park, Illinois real estate attorney can help. At the very least, they will be able to inform you of your legal options.

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Life in Oak Park

Oak Park, Illinois is a suburb of Chicago, located in Cook County. Its population, as of a 2003 Census estimate, is about 50,000 people.

Via the Chicago Loop, residents and visitors to Oak Park, Illinois, have very easy access to downtown Chicago, and all the amenities and economic opportunities that only one of the nation's largest cities can provide.

The history of Oak Park can be traced back to the 1830s, when a settler purchased about 170 acres of land outside Chicago. By 1850, the area was home to a railroad station, around which future growth would be based. Following the Great Chicago Fire of 1871, the population of what would become Oak Park began to boom, due to many residents relocating after losing their homes or businesses. Oak Park, Illinois was officially established as town in 1902.

Modernly, Oak Park is known for its many historic buildings, healthy economy, and excellent school system.

Because Oak Park, Illinois is such an attractive place to live for many people, it should be no surprise that plenty of lawyers have set up shop there. Oak Park, Illinois lawyers can handle just about any legal issue a resident of the area is likely to have. If you need any legal assistance, an Oak Park, Illinois lawyer is the first person you should call.

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