Home Ownership Preservation - Foreclosure Prevention

The following information was taken from the City og Chicago's website. It gives some information on a program the city is funding to help homeowners. All the homeowner need do is call 311 and ask to speak to a counselor about avoiding foreclosure.



BackgroundThe Homeownership Preservation Initiative (HOPI) is a partnership between the City of Chicago, Neighborhood Housing Services of Chicago, and key lending, investment and servicing institutions doing business in Chicago. The partnership seeks to preserve homeownership whenever possible and keep families in their homes through counseling, loss mitigation and loan workouts. When foreclosure is unavoidable, the partners seek to preserve the vacant properties as neighborhood assets.

Three-Year Goals:

Homeownership Preservation: Help 1,500 homeowners avoid foreclosure Help 500 homeowners per year avoid foreclosure through loss mitigation efforts, including loan workouts, refinancing, loan modifications, repayment plans and small loans to bring homeowners current on mortgage payments.

Property Preservation: Reclaim 300 vacant, foreclosed propertiesNHS, through cooperation with lender partners and the Department of Housing, will acquire 100 foreclosed single family buildings per year over three years, rehab them to safe and habitable condition, and sell the homes to low and moderate income families.

311 Homeownership Preservation CampaignTo expand efforts to reach homeowners at risk of foreclosure, the City of Chicago has developed the 311 Homeownership Preservation Campaign. The 311 Campaign will encourage homeowners to call 311 at the first sign of mortgage delinquency. Callers will be connected with one of three credit counseling agencies affiliated with the Credit Counseling Resource Center for a free one-hour counseling session.

The counseling agency will:
Provide an in-depth assessment of the homeowner's financial situation and an individual action plan.
Serve as a liaison between the homeowner and the mortgage company, where appropriate, to advocate for a repayment plan, loan modification or other loss mitigation strategy that will help the homeowner avoid foreclosure.
Provide referrals to local resources, where appropriate, for job training, tax assistance, emergency grants, and foreclosure prevention classes.

Questions about the Program:

How does the counseling session work? The 311 Operator will connect you with a not-for-profit, accredited housing counselor. The counseling session will take place over the phone and is completely confidential. The counselor will gather information from you about your financial obligations and work through your options for avoiding foreclosure. If appropriate, the counselor will help you contact your mortgage lender and negotiate a repayment plan.

How long does the counseling session take? You should be prepared to spend at least 45 minutes on the phone with the counselor. If you are not able to participate in a counseling session right now, you should call back as soon as you have time available. I'm not in foreclosure now, but I lost my job and am afraid I won't be able to make my mortgage payment.
Can I participate? Yes! The counselor can help you establish a budget to get through the next few months.

Are there grants available? Depending on your particular financial and family situation, there may be low interest loans or emergency funds available. The only way you can determine the best options available to you is by speaking with a housing counselor. Is there a cost for this counseling? The counseling is being provided free of charge to callers. The City of Chicago and participating lenders are funding the program.

Timeline of a foreclosure.

So many people have no idea what is happening in a foreclosure and when it happens, so I will try to break it down for you. In Illinois, which is a judicial state, it is a rather long process.
When you miss your first mortgage payment the bank starts to keep track. After you are 90 days behind they can legally start the process.

The first thing that they will do is file the lis pendis or legal notice. This is when the timeline officially begins. Once you are served the foreclosure petition you have 90 days to reinstate your loan by paying out all back payments, taxes, attorney fees, late charges, etc.

Keep in mind, many banks are being more lenient and will work with you to do a modification or something other than taking the home back from you in the foreclosure. Don’t be afraid to ask!
As a borrower in Illinois you have the right to redeem the property within 7 months from the date the lis pendis was filed, or 3 months after the date the judgment was entered by the court (that is the second court date).

After the redemption period ends the next court date (number 3) is when the lender’s attorney ask that a sale date be set. Once set, the lender has to publish the sale 45 days prior to the sale. Then one more time during each of the next 3 weeks (4 total).

After the sale is complete, there is a 10 day confirmation period where the court finalizes the sale. Thirty days after the sale date the buyer is able to take possession of the property.

Well, that about sums it up. There are a minimum of 7 months in the Illinois foreclosure process, and it could take longer depending on the bank.
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