We don’t quite understand the structural downfall that created the housing crisis, either, but we do know this: We have solutions for you.

Foreclosure is a lender’s solution when you, as the buyer with a mortgage breach their promise to repay. Unfortunately, this has happened all over the country, especially with buyers who were steered into subprime loans (as Illinois State’s Attorney Lisa Madigan has discovered) or homeowners reeling from the demands of adjustable-rate mortages during an economic crisis.

 The Illinois Mortgage Foreclosure Act sets out the specific procedures that must be followed by law. From start to finish, a foreclosure can take about nine months with some variable time. This is why you need to act sooner — rather than later — to handle your foreclosure crisis. You can’t take for granted your lender or loan servicer is giving you timely information or they’re earnestly pursuing the options you’ve discussed to help you avoid having to proceed through the foreclosure to the day the bank sells your house.

So here’s the rest of the timeline: Catching up on the missed payments is called “reinstatement.” At this point, you have about three months from when your foreclosure case is filed to bring current all the missed payments. This will also mean, in addition to the missed payments, you will also have to pay any court costs and attorney fees.

Paying off the entire mortgage is called “redemption.” In this phase, you have about seven months to redeem or pay off the mortgage. Now its tough enough to catch up, but it’s even harder to pay off. The possible refinancing with another lender is an option. But this can be rather tedious with a high-rate finance company. With a conventional mortgage lender, there maybe better results.

Worst-case scenario

If you can not redeem or reinstate the mortgage , your house will be sold at a foreclosure sale. At this point you only have 30 days after the sale to be out of your home, unless the lender buys at the sale. In this case you have another 30 days to redeem, or get out.

One alternative to foreclosure is selling your house on your own. This will avoid the low price that will be the result of a forced sale. Most lenders are usually happy to do if it will indeed pay off the loan. Another possibility is a option called (deed in lieu) of the foreclosure. This term means you will deed the house to your lender and get out of your home now. You will lose the house, but you will also avoid owing a deficiency.

The ordeal of losing your house in a foreclosure is trauma enough, but add to that the insult of owing a large debt to your lender. That is called a deficiency, and occurs if the foreclosure sale on your home doesn’t pay off what is left owed on the loan. These deficiencies are common, since many foreclosure sales do not bring very good prices.

If you expect to have an increase in your income, a Chapter 13 bankruptcy could bring you more time to make up (at minimum 36 months), and remove other debt.

You don’t have time to be frozen with fear. Now is the time for education and action. First, you need the help of experienced bankruptcy lawyers like those at BILLBUSTERS™. Don’t waste time. Talk to a professional immediately. Believe us, we’ve heard it all. No judgment. Just answers.