Top 5 Reasons to Avoid Bankruptcy in Illinois and Opt for Debt Settlement Using Benveniste Law Offices
When it comes to real estate, some of the most complex cases involve foreclosure. People affected by foreclosure are often left wondering if it’s possible to win a case against a bank when money was borrowed but not paid back. Foreclosure law is not black and white; it contains shades of grey as well, and several elements must be established before a bank can legally file a foreclosure lawsuit.
Paragraph 22: The Conditions Precedent
If a homeowner takes out a mortgage to purchase a home, that mortgage may be sold, transferred, or placed in a mortgage trust. If the individual ends up with financial hardship and is unable to afford their mortgage payments several years after taking out the mortgage, there is a fear of losing the home. However, a clause known as “Paragraph 22,” present in many mortgages, provides rights for homeowners. This clause says there is an obligation for a bank to give a borrower one final warning prior to filing a foreclosure lawsuit. It also states that the bank must provide an opportunity for the borrower to make the loan current in cases of financial hardship.
This obligation is known as a “conditions precedent.” The bank must comply with this obligation before filing a foreclosure complaint. There are several steps banks must take, including informing the borrower that he or she is behind on payments and that a specific amount of money is due within 30 days to bring the account up-to-date. The bank must provide in detail what can happen if past payments are not made. Unfortunately, banks avoid much of this and file foreclosure lawsuits without fulfilling legal obligations.
What is Proof of Demand in Real Estate?
Prior to filing a foreclosure lawsuit, a bank must send a letter to a homeowner demanding payment and informing the homeowner of any potential impending legal repercussions for not making the payments. In cases where homeowners sue banks because of foreclosures, the proof of demand is very important. If a bank cannot prove that the demand letter was mailed to the individual, then the letter cannot be used by the bank to prove they complied with protocol. In this situation, the homeowner can retain an experienced attorney to use Paragraph 22 to his or her advantage. This clause clearly states that the bank cannot legally foreclose on a home until after providing the homeowner with sufficient notice.
In cases like these, if the bank is unable to prove to the court that they mailed the notice to the borrower, the judge would have no choice but to dismiss the bank’s complaint. This shows that any contract, including one involving a mortgage, is quite complex.
Get Debt Relief Assistance Before It’s Too Late
Although it is vital for you to be aware of your rights in the event of a possible foreclosure, it is most beneficial for you to seek out debt relief options before the situation gets out of hand. Many people fall behind on mortgage payments due to multiple streams of consumer debt. When attempting to keep up with bills, individuals must address the most immediate issues first. Mortgage payments should always be prioritized; if these are put off, a person runs the risk of losing his home.
If you ever realize that your credit card debt has gotten uncontrollable and is hurting other aspects of your life, get much-needed debt relief before it’s too late. The Illinois credit card debt settlement attorneys at Benveniste Law Offices can negotiate debt issues with creditors on your behalf and help you take the necessary steps toward a debt-free life. Speak with an experienced attorney when you contact us today for a free case evaluation.
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