Opportunity to Consider Bankruptcy as Chicago-Area Foreclosures Increase

The Chicago Sun-Times is reporting that foreclosure filings took a huge leap from July to August, another bad sign for homeowners but an opportunity for those struggling with foreclosure to consider bankruptcy in Chicago.

An experienced Bankruptcy Lawyer in Chicago can help, as filing for bankruptcy stops foreclosure in its tracks. While the $75 billion available to encourage lenders to modify homeowners' loans was a fine idea, it hasn't worked. Banks have been unwilling to help homeowners and would rather foreclose on a person's home than help them stay in it.
Therefore, option #2 -- bankruptcy -- is a better fit for many people. If you are behind on mortgage payments, or have received word that your house will be sold at auction soon, filing for bankruptcy will stop the process. Bankruptcy also allows the homeowner to discharge debt or set up an affordable payment plan.

According to the numbers cited by the Sun-Times, foreclosure filings rose 19.5 percent from July in the Chicago metro area. Some experts believe lenders are now finally working through the documentation issues that plagued them in 2009 and 2010 before most institutions severely halted their foreclosure process last fall.

While there was a large increase in filings from July to August, yearly totals are down 28.2 percent from August 2010 to August 2011, which shows just how many foreclosure notices are waiting in the wings as banks start the process over again.

In the Chicago area, 11,226 homes received a foreclosure notice, amounting to 1 in every 337 houses. Statewide, filings rose 17.6 percent from July, yet were down 25.7 percent from August 2010. Statewide, about 12,500 homes received such a notice. National filings rose 7.2 percent from July to August.

The increase in filings likely shows that lenders are getting back on track in attempting to take away people's homes through the foreclosure process. This is bad news and just another reminder of how bad our economy is right now.

Homeowners usually don't go into foreclosure because they simply don't want their house any more. There are usually more deeply rooted problems. In some situations, it could be that they have been diagnosed with an illness that has required days or weeks in a hospital, resulting in overwhelming medical bills. In this economy, with a nationwide 9 percent unemployment rate, it's certainly possible people have lost their jobs and are using credit cards to survive while using whatever money they have to make a mortgage payment.

Whatever the reason, the person is likely in bad financial shape if it comes to foreclosure. But that doesn't mean they should lie down and allow the bank to steal away their home. Filing for bankruptcy in Chicago stops banks from taking homes away from their owners and allows them to stay in it while the process is ongoing. It may be a viable option for you, but we can't help you unless you contact us. Call today.

If you need to speak to a Chicago bankruptcy attorney call the DebtStoppers Bankruptcy Law Firm at 800-440-7235 today for a free debt analysis. Call 800-440-7235.

More Blog Entries:

Chicago Foreclosures Get Cash Boost Under Mayor's Plan: September 2, 2011

Chicago New Home Sales Slip in June Making Bankruptcy a Good Option: August 16, 2011

Additional Resources:

Foreclosure filings jump nearly 20 percent in Chicago area in August, by Francine Knowles, Chicago Sun-Times

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