Politics & Government

Workshop Tonight Seeks To Help Homeowners Facing Foreclosure

The Neighborhood Community Foundation, a nonprofit foreclosure prevention agency, hosts an informational program in Northbrook June 21.

One of every 617 homes in Northbrook received a foreclosure filing in May, according to the online real estate database RealtyTrac. And in Cook County as a whole, the figure is even higher: one of every 385 homes in the region received a foreclosure filing last month.

If you’re worried about losing your home—or already mired in the process—the nonprofit Neighborhood Community Foundation hopes to help, with a workshop tonight in Northbrook.

"You have to be proactive about saving your house,” says Chicago area foreclosure defense attorney and keynote speaker Adam Tracy. During the workshop, Tracy will discuss loan modifications, federal foreclosure programs and lender violations to watch out for.

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“We’ll spend some time on the process, getting people up to speed on how it works in Illinois,” he said. “Foreclosure is a hyper-technical part of law—it’s not quickly done or easily done.”

In particular, Tracy said he will focus on loan modifications. 

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“When most of my clients come to me looking to save their home, the best and only option is a loan modification,” he said. During the loan modification process, a homeowner may negotiate with their lender to change the terms of the loan with the end goal of lowering monthly payments.   

In the north suburbs, however, loan modifications can be especially tricky, since many homeowners have “jumbo loans,” of more than $700,000 and do not qualify for the federal Home Affordable Modification Program (HAMP), Tracy noted.

“Many people on the North Shore don’t qualify for it because their loan balance is too high,” he said. “The only option for them is internal modification programs that the bank offers, and they’re much more difficult to obtain.”

Homeowners in Lake County also may have a tougher time fighting foreclosure, he said, since there are fewer foreclosures per capita in Lake County. That means the courts are less overwhelmed and can move through cases faster.

In Cook County, however, where “the dockets are swollen,” homeowners can expect to stay in their homes up to a year and a half after being sued for foreclosure before the case is resolved.

“That can be advantageous,” he said, “because a lot can happen in that time.” An individual who lost his or her job might get hired, or a bank that was moving slowly might finally grant a loan modification. 

Of course, Tracy advises homeowners to seek a loan modification before things get bad. On average, most homeowners should be spending no more than one-third of their take-home pay on a mortgage, he said.

“Many people aren’t behind in their mortgage, but they’re paying far too much as a percentage of take-home pay,” he said. “Maybe they’re current now, but something is bound to happen: a car breaks down, you have a medical expense…You can’t wait until you fall behind.” 

Overall, Tracy said he believed the foreclosure situation in Illinois was getting worse, not better.

“One, the economy isn’t cooperating,” he said. “More people are taking wage cuts, more people are getting laid off.” 

And secondly, he added, getting a loan modification is increasingly difficult since banks have tightened up their regulations.

“More and more people are going into foreclosure because less and less people are getting modifications done,” he said. “It’s a two-part problem that’s not easily solved.”

The foreclosure prevention workshop will be held from 7-9 p.m. at the Renaissance Hotel, 933 Skokie Boulevard. For more information, visit the Neighborhood Community Foundation website or contact the organization at 877-306-5299. Nonprofit agencies from the area will also be in attendance to provide information and resources.

Editor's Note: This story has been revised to include quotes and information from an interview with foreclosure defense attorney and workshop keynote speaker Adam Tracy.


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