Preventing Illinois Bank Foreclosures

by Donald Hanz on States

Illinois dropped to the 13th spot from April’s 9th place in the list of states with highest foreclosures rate. The number of foreclosure filing for the month of May only reached 6,824 compared to 8,298 filings in April. But the number of Illinois bank foreclosures has increased from 683 to 709 for the same months and with the thousands of homes in the default stage; the current jubilation on the decrease in foreclosure activity may be short-lived.

Preventing your home from being repossessed and becoming one of these Illinois bank foreclosures is actually not an impossible task. Lenders now welcome all homeowners’ attempts to negotiate mortgage payments if they miss one. They could offer these owners with options such as loan re-structuring or re-financing.

On the other hand, lenders are more than willing to adjust mortgage payment terms and conditions to accommodate these requests from these owners. It is not surprising since these lenders want to cut back on costs incurred for keeping these bank foreclosure homes in Illinois in their possession. In fact, the high foreclosures rate experienced across that state has resulted to lower asking prices fro these homes.

Speaking of home prices; owners also have the choice of selling their homes before the re-instatement period is up. Seasoned buyers are always on the lookout for great bargains and if these owners would like to stop foreclosure, they could negotiate to shoulder closing costs o other legal fees.

Instead of shouldering closing costs, some sellers choose to slash down prices to attract more buyers. True enough, buyers flock to properties that are being sold at a fraction of their prices in the open market. Even if sellers receive just 80 percent of their asking price, it is better than losing their homes to lenders and have a foreclosure record on their credit history.