from Local Attorney, Michael H. Wasserman

Thursday, January 14, 2010

Mortgage Foreclosures up 33%

In all likelihood, someone you know is facing (or has already had to address) some sort of mortgage delinquency. One in every 31 households in the Chicago area received a foreclosure filing last year. That is up 33% from 2008 and nearly five times the number in 2007.

No doubt many news outlets and real estate bloggers will be reporting this data as well, but for more of the gory details, check out FRANCINE KNOWLES' summary in the Sun Times.

There are many ways that homeowners confronted with delinquency notices or foreclosure lawsuits can minimize - or avoid - financial loss. This can only happen if the homeowner is willing to confront the problem and acts quickly to mitigate potential losses.

Homeowners facing mortgage delinquencies or foreclosures should consult an experienced real estate lawyer to evaluate their situation and to help deal with their lenders.

There are often several options available including -
  • loan forbearances
  • loan modifications
  • deeds in lieu of foreclosure
  • short sales
Each of these options have significant legal consequences that should be carefully considered before proceeding, as mortgage loans are binding contracts and all of these options involve some aspect of enforcing or changing the terms of those legal documents.

If you do know someone facing foreclosure, the best thing you can do to help them, it is to urge them to seek legal counsel at the earliest possible opportunity.

Please let me know if you want to learn more, if you know anyone who is in need of assistance.