A foreclosure defense occurs when a homeowner decides to challenge foreclosure actions by taking their case to a judge. This is a relatively new avenue of legal defense that is increasingly pursued by homeowners who have been foreclosed upon. There are several different types of defense that foreclosure attorneys can take, depending on the circumstances surrounding the foreclosure actions. Foreclosure defenses, however, are complicated which is why it is so important to seek legal counsel from a Lake County foreclosure attorney.
A foreclosure defense is a practice area that requires an understanding of both real estate and legal jargon. All the strange language can be overwhelming during an emotional process that aims at preventing the bank from taking away your home.
A foreclosure lawyer in Lake County will be your biggest asset in a foreclosure defense case. This area of law is complicated and the stakes are high, make sure you have the right team on your side. Here are some of the terms and concepts you should be familiar with when pursuing a foreclosure defense case.
Mortgage and Note
These are two terms you’ll hear quite a bit in foreclosure proceedings, and they’re often confused. A mortgage is a document that gives the lender a security interest in the home. It is recorded in the county’s records and gives the lender a legal right to foreclose if the borrower defaults.
The note is the borrower’s promise to pay the agreed amount. Think of it as an IOU.
Mortgagor and Mortgagee
These terms may seem counterintuitive, but it’s a simple concept. The mortgagor is the buyer of the home, or the borrower. The buyer mortgages their home to get the loan. And the mortgagee is the lender.
Assignment of Debt
This is a transfer of debt from a creditor to a third party, who becomes the rightful owner of said debt and whose responsibility it is to collect from the debtor.
It’s common for loans to be assigned from one party to another for a variety of reasons. If you’re unclear who owns your debt, a foreclosure lawyer in Lake County can help you.
Reinstatement is a right granted to all borrowers by the Illinois legislation. It allows you to bring a loan current, or ‘reinstate’ it, as long you pay within 90 days from the time you receive notice from your lender.
Redemption and reinstatement are another set of terms that are often mixed up. Redemption is when the buyer pays off the loan completely. Like reinstatement, as a borrower you have the right to redemption by Illinois state law. The law allows borrowers to pay off all funds owed up to seven months after the date notice has been served or 90 days after judgment, whichever is longer.
If you and your family are facing foreclosure it is important to know that there are legal avenues available to you to fight the process. Find a premier Lake County foreclosure attorney at The Burns Law Firm P.C.. We specialize in foreclosure defenses and helping you keep your home. Fight for your home and contact us today to get your case started.