Foreclosure is a nightmare to any family going through it irrespective of the reasons why they are about to lose their home. Today we are going to look at the foreclosures effects in Chicago IL and what local house sellers need to know. First we will look at the effects and the ways of easing them.
Foreclosure Effects in Chicago IL to Sellers
- Loss of your home – Pretty self-explanatory here. The major end result of a foreclosure in IL is of course the loss of the home to the bank. If you are unable to reach an agreement with the bank you may also be evicted from your home.
- Decrease in Your Credit Rating – Your credit rating will be lowered by the foreclosure. How much? It depends on how high your current credit score is… but the higher your current credit score… the more your score will drop after a foreclosure. If you have a credit score of 680 or higher… you may see a drop of 100+ points.
- Depression and Stress – Your mental health is at stake because of the high pressure situation. Going through a foreclosure is emotionally exhausting, Facing the uncertainty of not knowing exactly when you will have to leave your home can create a tremendous amount of anxiety.
- House Values In Your Community – Another one of the big foreclosure effects in Chicago IL is that they tend to lower the overall value of the houses in your neighborhood… especially if there are multiple foreclosures in the immediate area.
- Additional Debt From Judgements – IL is a recourse state. This means banks can recover any deficiency (money they lost) after the foreclosure sale by filing a judgement against you. You will not be allowed to purchase another property until this judgement has been paid/released and the bank may pursue further legal action against you (like garnishing your wages) to start collecting this debt.
- Limited Future Housing Options – With a foreclosure on your credit report you will not be able to purchase a property for several years after the foreclosure is complete. You may also be evicted from your home which may show up on any future backgrounds check a landlord would do when you complete an application.
How You Can Ease The Effects Of Foreclosure In Chicago
For the well being of you and your family, you need to mitigate the effects of foreclosure as much as you can. The process can be frustrating and time consuming, but there are people who can help you navigate your different options in the process.
- Call your bank and work with them: Most banks are very willing and ready to work with you… if you can show that with their help you can get back on track and save your house. Or, if you just want out of the house but you owe more on the house than it’s worth… see if the bank has any programs to lower the mortgage burden so you can get out from underneath it without it going through an expensive foreclosure.
- Talk with a local real estate expert, like Blue Ladder Development: We know the local Chicago real estate market well and are very experienced in the foreclosure process here in IL. Give us a call at 630-387-6861 and we can guide you toward the resources that can possibly help you.
- Sell your house: If you’d rather find a way to sell your house and avoid the foreclosure all together, great! We buy local Chicago houses for cash… and would love to look at your situation and make you a fair all-cash offer on your house. Just call us at 630-387-6861 or shoot us your details through this website.
With the above knowledge on foreclosure effects in Chicago – what sellers need to know, you can guard yourself by calling Blue Ladder Development at 630-387-6861 and we shall assist you in the shortest time possible to sell your house. However, to fast track the process, kindly fill out our website contact form to give us more information about you. We’d love to connect with you and help you find the best solution!