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Options for Handling Foreclosure During Divorce Proceedings in Illinois

DuPage County divorce attorneys, foreclosure during divorceAs if going through divorce proceedings is not stressful enough, you may also be receiving threats of foreclosure by a financial institution that holds the mortgage on your home. This type of “insult to injury” situation is actually relatively common, so you do have options to address foreclosure proceedings under state law.

The key is to join forces with your partner as much as possible, stay in close communication with the lender, and work with an Illinois divorce attorney to ensure protection of your interests—both in the divorce case and through the foreclosure process.

Temporary Injunction

If the lender has already initiated foreclosure proceedings, you can sue to bring the entity into the divorce as a third party. The bank has a financial interest in the proceedings, and the court has jurisdiction over the assets, so a third party action is property. Once the lender is before the court, you can request that the judge issue a temporary injunction order prohibiting the bank from proceeding on the foreclosure until the order is released.

Sell the Home

If you and your spouse can agree to sell the home, you should get it on the market as quickly as possible. This is only appropriate where there is positive equity in the home, however. For purposes of your divorce case, it is an advantage to get this debt off the records so you can move forward with dividing property under Illinois law.

Deed in Lieu of Foreclosure

Another option, if neither you nor your spouse want to keep the home, is a deed in lieu of foreclosure. Essentially, you give the deed to the house to the lender by signing the proper documents; in turn, the bank will not pursue foreclosure. Still, these types of arrangements may not be the best fit if the fair market value of the home is less than the mortgage balance.

Loan Modification or Refinancing

If one spouse wants to keep the home and is financially able to do so, a refinance or loan modification may work to avoid foreclosure. With a refinance, you are basically paying off the old balance and initiating a new mortgage. In a loan modification, you work with the bank to restructure the loan—perhaps by agreeing to a lower interest rate or monthly payment amount.

Illinois Divorce Attorneys with Diverse Experience

Retaining a lawyer with a well-rounded background is essential when you are going through divorce and foreclosure proceedings simultaneously. There are additional situations where you may need a lawyer’s advice on non-divorce legal topics as they relate to your matter, such as criminal domestic violence, business law, tax treatment, and other relevant areas. The dedicated DuPage County divorce attorneys at Davi Law Group, LLC can help. Please contact our office to discuss your circumstances.

Source:

http://www.ilga.gov/legislation/ilcs/ilcs4.asp?DocName=075000050HPt%2E+V&ActID=2086&ChapterID=59&SeqStart=6100000&SeqEnd=8350000

Abraham Lincoln A lawyer’s time and advice are his stock and trade. -Abraham Lincoln
Warrenville Office
Address28371 Davis Parkway
Suite 103
Warrenville, IL 60555
Phone(630) 657-5052
Fax(888) 350-9195
Wheaton Office
Address1776 S. Naperville Road
Building A, Suite 105
Wheaton, IL 60189
Phone(630) 580-6373
Fax(888) 350-9195
Chicago Office
Address321 N. Clark Street
Suite 900
Chicago, IL 60654
Phone(312) 985-5676
Fax(888) 350-9195
Joliet Office
Address58 N. Chicago Street
7th Floor
Joliet, IL 60432
Phone(815) 582-4901
Fax(888) 350-9195
Davi Law Group, LLC handles family law, estate planning and real estate matters for clients in Chicago and throughout the western suburbs including DuPage County, Will County, Kane County, Kendall County and Cook County and the cities of Aurora, Bloomingdale, Bolingbrook, Carol Stream, Darien, Downers Grove, Elmhurst, Geneva, Glen Ellyn, Hinsdale, Joliet, Kendall County, Lisle, Lombard, Naperville, Oak Park, Oak Brook, Oswego, Park Ridge, Roselle, St. Charles, Villa Park, Warrenville, Wheaton, Winfield, Woodridge and Yorkville, Illinois.
Warrenville Office
Address28371 Davis Parkway, Suite 103, Warrenville, IL 60555
Phone(630) 657-5052
Fax(888) 350-9195
Wheaton Office
Address1776 S. Naperville Road, Building A, Suite 105, Wheaton, IL 60189
Phone(630) 580-6373
Fax(888) 350-9195
Chicago Office
Address321 N. Clark Street, Suite 900, Chicago, IL 60654
Phone(312) 985-5676
Fax(888) 350-9195
Joliet Office
Address58 N. Chicago Street, 7th Floor,
Joliet, IL 60432
Phone(815) 582-4901
Fax(888) 350-9195
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