What Happens After Your House is Foreclosed? | MJ Property Solutions, LLC.

What Happens After Your House is Foreclosed?

What Happens After Your House is Foreclosed?

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Without argument, losing your home to foreclosure is one of the most stressful moments of life. If you are in the pre-foreclosure phase and have some time, please contact us to save your house.

However, sometimes, even after trying everything, you cannot change destiny. It starts with one or two missed payments and the bank eventually forecloses the house. While it may seem like a draining and nerve-wracking experience, you can still find a way out. This article advises what to do after the bank has foreclosed your home.

How to Redeem Your Home After Foreclosure?

Illinois is a judicial foreclosure state. You get the chance to redeem your home after the foreclosure at the following terms:

  • You can reclaim the house until seven months after getting the foreclosure sale notice
  • Alternatively, three months after the lender obtains the court approval to foreclose the home.
  • You get less than 30 days to redeem the house if the lender purchases the house but at a price lower than the owed amount. For example, you owe $120,000 but the home sales for $85,000. In that case, you have a maximum of 30 days to apply for loan redemption.
  • The redemption period is shortened if the value of the home is less than 90% of the required amount or the lender waives his right to a deficiency judgment.

Finding Yourself a Home

To get back on the track of financial independence, you need to find a residence. Judicial foreclosures are time-consuming. You’ll get some time after the final notice is served. Use that time to find yourself a shelter. If your Income allows finding a rental property, great. However, if you have limited financial resources, you can seek help from the local organizations. You can see a list of supportive housing schemes on this page.

Finding a Job

Job loss is one of the primary reasons behind a home foreclosure. If you find an appropriate home for the family, you can rethink about finding a job. In case, emergency shelter schemes don’t work; you can search for rental properties created for families with low-income. You need to start somewhere, and for that, you need to find a home first. Coming out of a foreclosure is not an easy job but remind yourself that you are just one step away from being back on track.

For your job, take an aggressive approach and start sending resumes. An important tip is to focus on what you can offer to the potential boss/client? Reverse the situation. Imagine a company is looking for a candidate like you and then start hunting for your job. When we are desperate, our minds are occupied with thoughts of fear and we tend to forget the value that we bring to the table.

Do Not Yet Worry About the Future House

Buying an unaffordable house is never a good thought. Even if you find a stable job, postpone the idea of purchasing a home. Build your credit score. Save money for a down payment. Invest funds somewhere else but don’t yet tie the funds into a house.

A foreclosure with extenuating circumstances doesn’t allow you to purchase a home for 3-5 years. Use that time to improve the credit score. Catch up with other payments that you might have. Owning a house is the ultimate dream, but sometimes that dream also enforces you to give up on personal freedom. Perhaps not being a homeowner is good for now. You can build your life and whenever you feel is the right time, you can rethink about applying for a mortgage.

Letting go of the house can bring the necessary relief, and, it might be a good time to learn about the real estate market. For the time being, your action steps are to find a proper shelter and a reasonable job. Try to forget the fast, at least for the current moment. You have sold a burdensome property, and now with a stable job, you can get back on the track of financial freedom.

Please contact us for a free consultation or advice regarding this situation.

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