Foreclosure occurs when homeowners fall behind on mortgage payments without the ability to catch up. Since your mortgage is a legally binding agreement with your lender, defaulting gives them the right to auction your property to recover their investment—potentially leaving you homeless with severely damaged credit. This is especially problematic in older Chicago neighborhoods with frequent code violations, where our specialized team has the expertise to help when others can’t.
No one wants to receive that dreaded foreclosure notice, yet according to nationwide research, nearly 1 million Americans feared losing their homes (U.S. Census Bureau Household Pulse Survey, fielded from July 27 to Aug. 8, 2022). Foreclosure can result from various circumstances, including:
- Unexpected job loss or reduction in income
- Divorce or death of a spouse or financial contributor
- Overwhelming medical bills, credit card debt, or other financial obligations
- Moving to a new location without selling your previous home
- Property damage from natural disasters or other unexpected events
CVG Properties LLC is a locally-owned IL-based business specializing in purchasing distressed properties, particularly older homes with unique challenges like city code violations. As the only truly bilingual cash home buyer in the region, we offer transparent, straightforward cash deals without the complications of real estate agents, title companies, traditional bank financing, or other typical selling hassles!
What is Foreclosure?
Consider this scenario: you or your spouse suddenly loses their job. Your monthly expenses remain unchanged, but your income disappears, making it impossible to cover your mortgage payment. Even if you secure another position quickly, the debt accumulated during that unemployment period might be too substantial to resolve within a reasonable timeframe. When this situation persists, your lender begins the foreclosure process—a particularly stressful situation for owners of older Chicago homes with potential code violations that our bilingual team is uniquely equipped to handle.
How Long Do You Have To Get Out of Your House After Foreclosure?
The foreclosure timeline typically follows these steps: missed payments, public notice, foreclosure, auction, and eviction—though the duration varies by state. You might have anywhere from 120 days to nine months before the bank can foreclose through either judicial or non-judicial proceedings. Throughout this process, your lender will contact you via phone, mail, and email to inform you about what’s happening and what to expect next.
The Different Types of Foreclosure
You may encounter two distinct types of foreclosure: nonjudicial foreclosure or judicial foreclosure.
What Is Non-Judicial Foreclosure?
A non-judicial foreclosure is the fastest and most cost-effective method for a lender to foreclose on your IL property. This approach doesn’t require taking you to court and proceeds according to state regulations. In non-judicial foreclosure, your lender repossesses your home to sell it and recover the outstanding debt using a “power-of-sale” clause in the deed of trust. Not all states permit this option, but when available, lenders typically choose it to avoid court expenses.
What Is Judicial Foreclosure?
In states requiring judicial foreclosure, your lender must file a lawsuit requesting a court order to authorize the sale of your home. The lender must provide you with this documentation. Whether you agree with it or not, you must respond to this notice, or the lender will automatically win the case and receive permission to place your home up for foreclosure sale. After the house sells, you remain responsible for paying the difference between your remaining mortgage balance and the amount the house sold for.
Foreclosure auctions differ significantly from standard home sales, and properties rarely sell for market value. This means that even if your house is in excellent condition and worth substantially more than your remaining mortgage, you could still end up owing tens or even hundreds of thousands of dollars for a home you no longer own! This is known as a deficiency judgment. It’s an expensive and lengthy process for lenders seeking to recover their losses, which explains why most prefer non-judicial foreclosure when possible.
Get an offer today, sell in a matter of days.
How to Sell Your House Before Foreclosure in IL
Let’s examine several ways you can sell your house, depending on your timeline and circumstances:
Hire A Real Estate Agent
When most homeowners consider selling property, their first thought is contacting a local real estate agent. However, this approach has significant drawbacks when facing foreclosure. While an agent can list your property on the MLS and prepare it for showings, they perform these services because a substantial portion of your sale proceeds will go to them as commission. When you’re already struggling with mounting debt and need every dollar to repay your lender, commissions of 3% to 6% of your final sale price may be too much to sacrifice—especially with older Chicago homes that might have code violations or require extensive repairs that our bilingual team is specifically equipped to handle.
Additionally, there’s the uncertainty of when your house will actually close. Realtors may make promises, but ultimately you still need to find the right buyer and wait 30+ days for a traditional closing. For homeowners facing imminent auction and eviction, even a one-month waiting period might be too long, and unresolved code violations could further delay or completely derail your sale—a common problem with older properties in Chicago neighborhoods that our bilingual team specializes in resolving.
Short Sale
If your mortgage balance exceeds your home’s value, your realtor may recommend a short sale. This option becomes necessary when you owe more than your property is currently worth. For example: if you owe $200,000 on your house but in today’s market it’s valued at only $150,000, you’ll need to pursue a short sale. Though it might seem like a viable solution, it won’t be quick or simple, especially for older Chicago homes with potential code violations that our experienced bilingual team is specifically prepared to address.
Initially, you’ll need your lender’s approval. To qualify for a short sale, you must demonstrate financial hardship with documentation such as W-2s, medical bills, and other relevant records. For situations involving income loss, the lender will require proof that this reduction is long-term and unlikely to improve soon. If your lender approves the short sale, you’ll need to find both a real estate agent and attorney who specialize in short sales, and they’ll charge the same fees as they would for a traditional home sale.
If your foreclosure hasn’t progressed too far and you’ve maintained communication with your lender, they’ll likely approve the short sale. This allows them to avoid the time and expense of foreclosing on your property while still recovering some of their losses from missed mortgage payments. However, for the average homeowner, the short sale will impact their financial life for the next 5 to 7 years.
Though you may have sold the house and managed to settle some debt, a short sale can damage your credit similarly to bankruptcy. Credit bureaus record both the mortgage delinquency and the short sale itself, making it extremely difficult for former homeowners to obtain credit cards, purchase vehicles, or secure housing for roughly the same duration as bankruptcy consequences.
Sell Your House AS-IS to A Cash Buyer
If you’re facing a tight deadline to sell your house before foreclosure advances to auction and eviction, you do have alternatives! While you could attempt selling with a real estate agent or coordinate a short sale with your lender, the most effective solution might be partnering with a trusted bilingual cash investor like CVG Properties who specializes in helping homeowners with older properties and code violations in Chicago neighborhoods that others simply can’t handle.
Key benefits of selling directly to a bilingual cash investor include:
- A swift, transparent, and stress-free closing process with absolutely no surprises—you’ll know exactly what you’ll receive.
- No commissions, hidden fees, or unexpected costs to pay—keeping more money in your pocket.
- Eliminating the need to market your property and wait for qualified buyers—saving precious time.
- No cleaning or repairs required—we handle city code violations and buy properties exactly as they are, even when others won’t touch them!
When you sell your home as-is to a direct cash buyer like CVG Properties, you not only avoid losing your property to auction, but you may also generate enough funds to eliminate your financial debt entirely. We’ll even help arrange and cover your moving costs before closing—an exclusive benefit you won’t find elsewhere! Moving forward without the burden of monthly mortgage payments and overwhelming debt can truly transform your life!
Can You Stop Foreclosure Once it Starts?
Pay Off Your Loan & Fees
You’re facing challenging financial circumstances. Your debts are mounting while your income remains stagnant. It’s time for decisive action to reduce your debt quickly. Do you have assets you could liquidate? Perhaps friends or family members could provide gifts or loans until your situation improves. If you’re committed to reducing debt and preventing foreclosure, consulting with a financial professional might help restructure your budget effectively. Consider implementing one or several of these approaches to tackle your debt mountain and reclaim a stress-free lifestyle.
Declare Bankruptcy
As a last resort, bankruptcy may temporarily halt your home foreclosure, but it comes with significant consequences. The bankruptcy process is complex and typically requires an attorney specializing in bankruptcy law. If the court approves your petition, you’ll enter a government-approved credit counseling program, and the bankruptcy will remain on your credit report for 7 years. This financial decision affects virtually every aspect of your life, including vehicle purchases, credit card applications, bank account openings, and can disqualify you from future rental opportunities.
The Homeowner Affordability and Stability Plan (HASP)
If your debt exceeds your income, you might qualify for the Homeowner Affordability & Stability Plan (HASP). HASP is a loan modification program designed for borrowers facing foreclosure due to insufficient income. This government initiative helps American homeowners restructure their monthly payments to accommodate limited budgets. Check your eligibility by applying here.
Sell Your House Fast to a Cash Buyer
Are you ready to sell your house but can’t wait 30+ days for a traditional closing? Does a short sale seem like the fastest path to credit damage? Would you prefer to eliminate all your debt at once and quickly remove the bank from your life? A bilingual direct home buyer like CVG Properties might be your ideal solution! When partnering with our established local Chicago team, you’ll find a responsive company with readily available funds prepared to purchase your home as-is, even with code violations that would scare away traditional buyers. With our transparent cash buying process, you can bypass the extended foreclosure process, eviction, and auction in just days while preserving your credit rating!
While you might not receive full market value when selling to a trusted cash investor, the benefits of a rapid, transparent closing with no surprises and the absence of fees, inspections, and commissions often balance out at closing. Most importantly, because we can close quickly and handle local ordinance or village violations that would delay traditional sales, you can often complete the sale before the bank auctions your property! This means you can sell at a price that benefits you rather than accepting the pennies-on-the-dollar price the bank typically offers just to remove the property from their books.
We Buy Houses in Foreclosure & Pre-foreclosure–
Get Your Offer Today!
Ready to finally walk away from your property without the dark cloud of foreclosure hanging over your head? Contact the bilingual professionals at CVG Properties LLC today to learn more about our transparent, no-surprise process and receive a fair cash offer for your property—and remember, we’ll even take care of your moving arrangements before closing, giving you one less thing to worry about during this stressful time!