Foreclosure and Loan Modification Blog

Illinois Hardest Hit Fund Helps Senior Avoid Reverse Mortgage Foreclosure

Recently our firm was hired by a homeowner in Chicago, Illinois who needed help saving her home from foreclosure. To protect her privacy, I'll call this client “Ms. Campbell”.

Ms. Campbell's home was scheduled to be sold in a foreclosure auction in March, 2018. She hired us in January. Retaining an experienced law firm like ours that has a record of helping people in her situation was the smart thing to do, but it's better to do so before a sale date is scheduled.

With so little time until the scheduled foreclosure sale, would we be able to save her home?

Unlike most people facing foreclosure, Ms. Campbell wasn't past due on her mortgage payments. She doesn't even have mortgage payments. She was facing foreclosure on her reverse mortgage, which takes advantage of the equity she had in her home.

How Do You Deal with Foreclosure on a Reverse Mortgage?

How do you end up in foreclosure because of a reverse mortgage? And is that a reverse foreclosure? What do you do if you inherit a house that has a reverse mortgage?

Before we answer those questions, let's first define what a traditional and reverse mortgage are.

Traditional Mortgage

In a traditional mortgage, you borrow a lump sum of money to purchase a home, then pay it back in monthly installments, plus interest, over time. You start out with little or no equity and build it as you pay down the balance of the loan. If you stop paying your mortgage, your home will be foreclosed for defaulting.

About this Blog

Amerihope Alliance Legal Services is a leading loan modification and foreclosure defense law firm with attorneys licensed in 5 states. We have helped over 7,000 homeowners fight back and keep their homes.

Click to Read Our Super Loan Mod Success Stories

Our goal is to provide valuable information to help homeowners who are trying to obtain a loan modification or to stop foreclosure. You may schedule a free consultation at any time.

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