What is a mortgage?
A mortgage is a loan that is used to pay for a house. If you are looking to buy a house, but you can't afford to pay the whole price, you can take out a mortgage to help you pay for it. You then make monthly payments to the bank.
What is a mortgage foreclosure?
If you don't pay your mortgage payments, your bank can file a lawsuit to sell the property. This is called a foreclosure case. The proceeds from the sale are used to pay off the loan.
What can I do during a foreclosure?
It is important to participate in your court case so you know what is happening and what you can do. You should also work with the lender on a loss mitigation option. During the case, lenders may accept your payments if they are in whole month amounts. The lender must apply the payment to your unpaid debt balance. If the payment is not enough to pay off the entire debt currently due, the lender may continue its foreclosure case.
Use our interactive guide to walk through the foreclosure process through the eyes of a homeowner. You can also read the articles listed below. Finally, you can view the videos Mortgage foreclosure overview and What happens once a foreclosure lawsuit is filed?
If you need help with mortgage foreclosure, you can contact a HUD Approved Housing Counseling Agency. The Illinois Housing Development Authority has more information on saving your home. You can also Get Legal Help in your area.
Updated: February 2018