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INTRODUCTION
“We do not want to foreclose any mortgage if there is a reasonable chance of saving it.”
Fannie Mae, Foreclosure Prevention Manual
In 1997, the stock market continued to set records as it increased by 20% for the 3rd consecutive year. Unemployment in Illinois was at the lowest level in over 20 years and the inflation rate was at its lowest level in 11 years. Yet, despite this apparent prosperity, the rate of mortgage delinquencies remained stable, the number of bankruptcies flied nationwide set a record and in Cook County, the number of foreclosure filings increased by over 30% for the 3rd consecutive year.
The reasons for the increase in mortgage delinquencies and foreclosure filings are varied, but the bottom line is the same: the ripple effect of it impacts each and every one of us in one way or another. That is why a voiding foreclosure benefits everyone: mortgage companies, homeowners and society as a whole.
Mortgage lenders lose money on every delinquent loan but they lose the most money on a delinquent loan that is foreclosed. The issue for lenders is not delinquencies, but losses. If you are a homeowner in foreclosure, you would probably' prefer to keep your home. Plus, avoiding a foreclosure on your credit history is very beneficial in the long term.
Your mortgage company wants to avoid foreclosing your delinquent loan if it is at all possible. The single most important way you can do this is by calling them to determine what help is available. Your lender willll do a financial analysis to determine the programs for which you may qualify. In a great many cases, foreclosure is usually the lenders last choice.
The following chapters will discuss your options in greater detail. This booklet is not presented as an exhaustive analysis of each and every available program. Rather, it serves as a practical guide to the current options to avoid foreclosure. Programs change, new ones are added and others are eliminated. How these programs will apply in your case will depend on your particular circumstances.
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