Many Illinois residents do their best to pay their bills in full and on time. Unfortunately, life happens, sometimes money is tight and something has to give. So, they stop making their mortgage payments for the time being. Those who default on their home loans may find themselves facing foreclosure. What can they do if this happens?
Who wants to believe that a bank will take one’s home after a few missed payments? No one. The bank does have that right, though, if a borrower cannot make it right and bring his or her account back to good standing. Unfortunately, a lot of people lack the funds to do this.
If one decides to walk away and let the home enter foreclosure, it does not mean one is free and clear of payment responsibility. In Illinois, if a lender reclaims the home and sells it at a loss, the lender has the right to seek a deficiency judgment against the debtor in order to seek to collect the remaining amount owed on the property. Those who are not able to make their mortgage payments are not likely able to pay deficiency judgments either, but the court can order the money be garnished from their wages or use other collection tactics to ensure payments to lenders.
Why let it get that bad? Illinois residents may have other options to resolve their debt issues and avoid foreclosure and the potential consequences that can come with it. An experienced bankruptcy attorney can review one’s financial situation and offer information about possible solutions. Assistance can then be provided in pursuing the best legal course — whether that be filing for bankruptcy or something else.
Source: thebalance.com, “What Does it Mean to Default on a Loan? Learn What to Expect“, Justin Pritchard, Accessed on March 17, 2018