Deny. Deny? Deny!

Posted on February 2, 2012 by Karen Coffey

You are being sued by your lender for not making your mortgage payments. Welcome to foreclosure court!

Should you be like the other more than 90% of people in your circumstances and do nothing? Just ignore the lawsuit and lose your home through a default judgment (i.e., you lose because you never showed up in court)?

Most certainly not! You’ll at least go to the court hearing; see what you can find out. You are not a bad person. Either you have fallen on bad times or you just over-paid (like the rest of us). In either case, letting the property go is a good business decision. You have nothing to be ashamed of, I promise. Making the process last as long as possible is also a good business decision. SO… off to court you go, to see what you can show.

You are told that an “answer to the complaint” must be filed. Yikes! Diligently you stare at the paperwork. You see the form you received gives you three choices:

admit
deny
insufficient information to either admit or deny.

You go to work reading each paragraph of the complaint. What language is it written in? Is that Latin? It might as well be French because it looks like Greek to anyone who’s not an attorney.

The correct answer is — it is written in “Legalese.” The language of attorneys and courts where the definition of a word or phrase changes from time to time depending on the types of cases in the appeals court. Good luck with that. Oh, and in foreclosure court, when you file your answer it is a “verified” document meaning you have to SWEAR that it is “true and correct.”

Here’s another secret that the free help desk failed to mention. This is the important part so take a deep breath and read slowly and carefully.

In most proceedings if the defendant (i.e., the person being sued) says they don’t have sufficient information to know if an allegation in the complaint is true or false the plaintiff (the person bringing the lawsuit) has to prove that it is true. That is NOT the case in a foreclosure lawsuit. A sneaky trick that somehow became the law #735 ILCS 5/15-1506(a)(1). (This combination of letters and number is the “cite” or the legal way attorneys can find the law itself to make sure what the writing attorney is saying is correct.)

This statute (i.e. law) states that unless an allegation is specifically denied it is deemed admitted. “What!” I can hear you gasping. “That can’t be right.” It’s not right, but it is the law – at least in Illinois it is.

So what do you do? Well, if you’re asking for my advice I’d tell you to take 2 aspirins and call me in the morning.

Karen Coffey
Attorney-At-Law

E: kcoffey@coffeyatlaw.com
T: 773.316.7619 (direct line)
W: www.coffeyatlaw.com

New Door Locks for Tenants: Out Of The Frying Pan And Into The Fire

Posted on January 31, 2012 by Karen Coffey

You are trying your best NOT to become a “foreclosed condo in Chicago” statistic. You cut back your expenses, still not enough income to pay the mortgage. You contact your lender and attempt to become a “Short Sale Homes in Chicago” statistic…yeah, no need to get into the details on what happened or more likely did not happen with those conversations. (Do not worry, it was not you, they treat everyone that way.) You even meet with the free HUD counselors. They confirm there is not any special program for which you qualify.

As the last resort, you rent out your condominium (thank goodness there are all those other “foreclosed condo in Chicago” statistics that have the money to pay you rent). You are now living (fill in the blank):

in a smaller/cheaper rental place
with friends, with your parents
with your ex-wife or ex-husband
in the street
other.

Not the best case scenario but at least the rent you are getting from the third party keeps you from becoming a “foreclosed condo in Chicago” statistic.

What you might not have realized, however, is while you are paying – or more accurately, while your tenant is paying — your mortgage, association dues, taxes, etc.; you are now officially a Landlord. Since you have a tenant, you are accountable for your actions or inactions with regard to that tenant under all the landlord/tenant statutes that apply.

One of those statutes, the Illinois Landlord and Tenant Act, created a new Landlord obligation, effective January 2012. You — the landlord, must change the door locks for each new tenant. If you choose not to comply with this law, you could be found liable to the tenant for damages sustained where the tenant’s property is stolen and it seems that the person gained access because they had a key. To read the specific language of the law, do a search using “765 ILCS 705/15” as the search term and the statute will pop right up.

While there are some exceptions to this rule, please do not take any chances. If you are renting out your unit, become familiar with the statutes for which you are now responsible. In addition, by all means – change the locks for each new tenant. You certainly do not want to give up your home to a tenant so you stay out of foreclosure court only to have the tenant sue you.

Karen Coffey
Attorney-At-Law
773-316-7619
kcoffey@coffeyatlaw.com

Foreclosure Filings Rise 7%

Posted on November 22, 2011 by Karen Coffey

Does Your Foreclosure Defense Attorney Make the Cut?

It is all over the news. According to one of the industry experts for tracking this type of information, RealtyTrac, U.S. foreclosure filings rose seven percent (7%) in October 2011. So what does this mean? It means if you are one of the millions of homeowners who have fallen behind in their mortgage payments you better talk to an attorney and evaluate your options.

“What?” you ask. “I have options? How can that be? I owe the money….” Believe me, YOU HAVE OPTIONS!

The real question you should be asking yourself: How can I (a regular person) determine if the attorney I am speaking with (supposedly an expert in this area) actually knows what they are doing? Do they have the expertise to legally “work the system” so I can stay in my home for many years to come, despite the fact that I have not paid my mortgage payments. The Top Five List below provides some guidance and insight.

TOP FIVE LIST

You know the attorney you are speaking with should NOT be hired as your foreclosure defense attorney when…

1. They do not ask you if the mortgage was an original home loan or a refinance and if it was a refinance, if it is less than three years old.

2. You shared with them you would like to apply for a loan modification and they do not suggest using a HUD counselor (these counselors are FREE).

3. They tell you that because you did not pay your mortgage you do not have a case.

4. They tell you that it’s too late to do anything when you share your home has been auctioned off by the sheriff without first asking if the sale has been confirmed by the court and a host of other questions.

5. They will not let you pay a flat rate of $300 a month after paying the initial retainer fee of $1,500 for their services.

This is your home and it is your future. Do not let the attorneys you call for help intimidate you. Take the time to ask questions. Take the time to find an attorney who knows how to utilize the legal system to your advantage at a price that keeps you out of the poor house and in your home for as long as legally possible.

Karen Coffey
Attorney At Law
kcoffey@coffeyatlaw.com

Think Your Lender Hasn’t Filed A Lawsuit?

Posted on October 20, 2011 by Karen Coffey

On more occasions then I care to admit, I have had a potential client sitting in my office ready to
bet me money that their lender had not filed a lawsuit against them. The conversation usually goes something like this:

“I see they officially started the foreclosure process last March. According to the online docket…” I begin as calmly as I can.

“What!?” they interrupt with underlying panic in their voice. “There can’t be a foreclosure lawsuit
pending against me. I’ve been working with the bank on [fill in the blank with about 10 options].
They promised nothing would be filed while we tried to work it out!”

I wish I could claim that as the all-knowing FREST (Foreclosure Representation to Extend
Stay Time) attorney that I had a magical crystal ball showing me who is being sued for foreclosure and who is not. However, I cannot claim that because I don’t.

A little known secret (until now): Everyone has access to this information. Not only is each lawsuit a public record that can be accessed by pulling the file in the court building, more and more court systems are posting this information on the Internet!

In Cook County, IL you too can see (at no cost) if a lender has filed a foreclosure lawsuit against
you… or your neighbor… best friend… mortal enemy… you get the point.

By clicking on this link — http://bit.ly/AreYouBeingSuedByYourLender — you will be able to confirm if there is a pending foreclosure. If a lawsuit has been filed, this site provides access to the case docket (i.e. the timeline the case has followed thus far and what was filed with the court when). To obtain the correct information you must exactly follow these few easy steps after you click on the above link:

Scroll down to Division Name and choose “Chancery”
Scroll down to “Search by Name”
Click on the circle next to “defendant”
Type in the home owner’s name you wish to search (spelling matters)
Hit the “Search Now” button

Whatever you find, please remember this – knowledge is power. Now that you know, you can do
something about it!

So now what? Regardless of whether or not there is a pending lawsuit, in my opinion your best next step is to connect with a FREE HUD counselor. In Cook County, my favorite organization (to date) is the Rogers Park Community Development Corporation. www.rogersparkcdc.org. (Ask for Heather Hain-Whiteford, current director, and tell her I referred you for services. If you have anything but rave reviews, call me at 773.316.7619!) They will go over all of your options with you. Together, they will help you sort out which options are viable alternatives and guide you through what paperwork you will need to collect for each strategy available to you.

Do not neglect to visit my website www.coffeyatlaw.com to learn more about FREST — (Foreclosure Representation to Extend Stay Time). You are not in this alone. There are free (HUD counselor) and flat-fee based services (my law firm) that will help you through it.

A final piece of advice: if you see your neighbor’s name on the Cook County Clerk’s website and their house is in foreclosure — Be a good neighbor and forward this article to them!

Karen Coffey
Attorney at Law

Rescue Your Home From Foreclosure!

Posted on October 3, 2011 by Mary Nack

In these troubled times, I am often approached by people who are having problems making their mortgage payments – usually through no fault of their own. They are just victims of the turbulent economy that many of us have fallen prey to.

No so much by choice, but by demand, I have done a lot of digging into this field these past few years. I have learned more about what goes on behind the curtain in a distressed sale then I ever wanted to. It is not an easy body of knowledge to wrap your hands around. A lot of that has to do with the sheer amount of chicanery and charlatans ready, willing and able to prey on the desperation of home owners in trouble.

The other issue is that the rules of the game are constantly changing. And all of us are learning as we go. It has been 80 years since our economy has experienced this kind of turmoil (but we are NOT in a depression – this is just a recession. And if you believe that, then I have some ocean front property…)

In the last Great Depression, homeownership was not nearly as widespread as it is today. Prior to FDR’s sweeping changes in the way people bought and financed homes, homeownership was a privilege granted only to the wealthy. Mortgages as we know them today did not exist. When you bought a home, you typically put half down and financed the balance over 10-15 years. Homeownership was the purview of the wealthy – not something that the Average Working Joe ever aspired to.

Through FDR’s creation of Fannie Mae – and then later Freddie Mac and Ginnie Mae, banks now had a place where they could sell their loans, freeing up capital so they could make more loans. Prior to the formation of these quasi-public institutions, banks did not have a secondary market to sell to – and so kept those loans in their own portfolio.

So even though today’s tough times share many similarities with the last Great Depression, today’s set of circumstances are totally unique from that historical situation. However, there can be no question that today’s economic situation requires bold action probably on a scale similar to what FDR did. Whether our leaders are capable of such bold action seems extremely doubtful.

In the meantime, if you are a homeowner faced with foreclosure, what should you do – and what CAN you do?

The very worst thing you can do is bury your head in the sand and hope it all goes away. While facing the issue squarely in the face may be one of the hardest things you have ever done, it is the only way you will ever be able to get out from under.
In spite of all the PR to the contrary, the bank is NOT your friend. Calling the bank to ask for help is like opening the gates and inviting the barbarians into the compound. Think of it this way: when you are served with the papers of a lawsuit, is that the action of a friend? In a foreclosure, the bank is suing you. They are, most decidedly, NOT your friend!
It is clear that you will need professional help to get through this. And this may be the toughest part of all – because there are way more charlatans out there then competent professionals. And even honest, well-intentioned ‘professionals’ may not be competent to properly advise you.

So what can you do to protect yourself?

First Step: DO NOT SIGN ANY PAPERS YOU DO NOT THOROUGHLY UNDERSTAND AND DO NOT GIVE ANYONE ANY MONEY – FOR ANYTHING!

Second Step: Go to http://HUD.gov and get the name of an approved HUD counselor. This service is free – or available at a very nominal expense. So go ahead and make an appointment to meet with a housing counselor. They will tell you what documents you need to bring to the appointment.

Within the city of Chicago, you can dial 311 and ask to speak with a housing counselor. You don’t even need an appointment. If you have all your documents on hand, they will interview you on the spot right over the phone!

Third Step: Once you have reviewed all your options with the HUD counselor and you have determined a strategic plan to follow, give me a call. I will put you in touch with reputable and competent professionals who will take you by the hand and walk you through the process.

Do not succumb to the negative feelings financial problems may cause you. If ever there was a time to pull yourself together and look reality squarely in the eye, this is it. Do not make things out worse then they are – nor pretend that everything will be fine if you just ignore them. Be grateful for the good things you DO have. Learn to have a grateful and humble heart. Forget about unimportant things that only serve to upset you. Learn to focus on and appreciate the really important things in your life – the love of family and friends who are there and willing to help. Do not suffer alone in silence – ask for help. Friends and family can be invaluable aids to get you through this tough time. Remember, no person is an island. There is not a person alive who hasn’t needed a helping hand at one time or another. Swallow your pride and ask for the help that you need.

Step by step, you will eventually emerge from the nightmare of losing your home – and, if you choose, you will be stronger and wiser for the experience.

(For additional details on some of the various legal options available to you, click here now.)

Foreclosed Homes In Chicago

A Resource To Navigate The Distressed Real Estate Market In Chicago

Category Archives: Foreclosed Homes In Chicago

Deny. Deny? Deny!

New Door Locks for Tenants: Out Of The Frying Pan And Into The Fire

Foreclosure Filings Rise 7%

Think Your Lender Hasn’t Filed A Lawsuit?

Rescue Your Home From Foreclosure!