One word every homeowner fears is foreclosure. In recent years, this term has been become more common. Foreclosure occurs when a property owner is no longer able to pay his or her mortgage, causing the lender to take the property. If you’re a homeowner in Chicago trying to repair your credit score, then understanding the basics of foreclosure may help you keep your home:
- The Process - When people mention foreclosure, they are often referring to the entire process as a whole. In reality, foreclosure involves three processes: the pre-foreclosure, foreclosure, and post-foreclosure. During the pre-foreclosure stage, you still have a chance to save your credit score because the home may be able to be transferred before the lender becomes involved. By the time the post-foreclosure stage has begun, the lender has taken control over your property.
- Judicial vs. Non-Judicial Foreclosures - Homeowners establish either a mortgage or deed of trust with their bank in order to pay off their homes. Under a mortgage agreement, you will need to go to court in the event of a foreclosure. However, if you have established a deed of trust with your bank, then you will likely not face any court proceedings, which makes the whole process a bit faster.
Foreclosure is by no means a simple process. Each state has its own specific laws in regards to the process. If you are have recently faced foreclosure, then the CBI Education Network can help improve your credit score. We are a credit service agency in Chicago that helps improve credit scores through credit counseling. If you’d like to learn how we can help you, then contact us at (888) 690-1750.