If You Face Foreclosure

Foreclosure is a complex legal matter that you should not attempt to handle on your own. Obtain legal counsel as soon as possible. Defaulting on a mortgage has potentially serious consequences. Not only does it cost you your current property, but it will affect your credit rating and compromise your ability to obtain a mortgage in the future.

If you are facing foreclosure, seek advice from an attorney or a nonprofit, City- or HUD-certified housing counselor. The resource section of Chapter 4: Professional Services provides a comprehensive list of local nonprofit legal organizations and professional groups you can contact.

Beware of the information you will receive from bankruptcy attorneys, foreclosure assistance groups and others, which might offer “services” that will end up costing you much more than they are worth. Some will even defraud you out of your property’s equity or the property itself. This especially occurs through predatory refinancing loans. For more information and assistance with predatory lending, contact the Chicago City Treasurer’s Predatory Lending Program at 312-744-3365, or click here.

However, if you really cannot afford to keep your space, be proactive and act early to sell it on your own terms or through a licensed real estate agent. This way, you can at least maximize the sales price. Review Chapter 4: Professional Services for more information and resources on locating a real estate agent.