Do I need to foreclose in Chicago

Do I need to foreclose in Chicago

Foreclosure is the seizure of property by banks when the borrower fails to pay back the mortgage loans. Being an executive of the bank, foreclosure can take a toll on your bank’s resources. Foreclosure is a multi step process which begins with sending a notice to the borrower after 45 days have passed the due date. This is just a formal intimation.

Usually the borrower will contact you in person and try to work out an arrangement for settling the debt. In case the borrower misses a second payment and fails to make a satisfactory arrangement, you as the bank can invoke your loan’s acceleration clause. This means the borrower is obliged to pay the entire loan plus interest. Then you can file a legal case on the borrower.

Unless the borrower hires an attorney, the court grants the judgment in the lenders favor. The proceedings usually take the following steps. First you hire an attorney. Then the attorney acknowledges the reception of the file. Then the title report is received followed by the filing of the complaint. The trial may take some time if the borrower hires an attorney.

The judgment is in the interest of the lender. The judgment is then entered against the borrower or the house owner and the date of sale is announced. The auction is then held and the property is sold off to the highest bidder. Usually the bank loses precious time and assets. So try to make an arrangement with the borrower before going for foreclosure.