![]() ![]() The primary benefit of a consent foreclosure is that, in most cases, the lender will waive its right to seek a deficiency judgment for the difference between the amount you own on your loan and the proceeds of the eventual sale. The “consent” part of a consent foreclosure, however, means that you are not fighting the foreclosure and you agree to walk away from the property. A consent foreclosure is still a foreclosure in that court enters a judgment of foreclosure against you as the homeowner in default on your loan and the property is turned over to the lender. Negotiating the Terms of a Consent ForeclosureĪ consent foreclosure is a process allowed by the Illinois Mortgage Foreclosure Law (IMFL) that is essentially a pre-trial settlement of the foreclosure proceedings. One such option is a consent foreclosure. In exchange, the lender may be willing to waive its right to pursue a deficiency judgment against you. In some situations, however, the lender may be open to other options that might not cost so much in terms of time, money, and energy. As a result, if the lender wins the foreclosure lawsuit, the lender can seize and sell your home, and you could be left responsible for the difference between the sale price and the amount remaining on your mortgage. Court costs, attorneys’ fees, and other expenses can add up quickly. ![]() Under Illinois law, all foreclosures must be filed in court, and a judicial foreclosure can be a challenging, expensive undertaking for the lender. If you are seriously behind on your mortgage payments, you are in danger of foreclosure. To get legal help with your case, contact our Waukegan foreclosure defense attorneys at 84 and set up a free consultation today. If you are facing the threat of foreclosure, Newland & Newland, LLP can help you determine your best options for resolving these issues, protecting your credit, and eliminating debts. In some cases, a judicial foreclosure may be completed. If objections prevent a homeowner from completing a consent foreclosure, they may need to consider other options. Because junior mortgage lenders may not be able to recover what is owed, they may object to a consent foreclosure. All lenders who have an interest in the property must consent to this type of foreclosure. A consent foreclosure will remove all liens from the title of the home, and a mortgage lender will waive their right to pursue a deficiency judgment to collect any additional amounts owed on a mortgage. ![]() Homeowners should also understand how junior liens such as a second mortgage or home equity line of credit may affect their ability to complete a consent foreclosure. ![]() If this will be a concern, a homeowner may need to determine whether completing a short sale or using a deed in lieu of foreclosure will be a more beneficial option. The completion of a foreclosure will be included in a person’s credit report, which could affect their ability to secure a mortgage in the future. However, homeowners who are considering a consent foreclosure should be sure to understand how this will affect their credit. UPDATE: A consent foreclosure, as described below, may be a beneficial way for a person to relinquish ownership of their home and avoid a deficiency judgment. Originally published: J- Updated: November 8, 2021 ![]()
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