Loss Mitigation Services: The Law Offices of Sulaiman & Associates will conduct an in-depth study of all your mortgage documents and review the Client's specific narrative to discover the best course of action to be taken in regards to a Loss Mitigation Strategy. The Firm’s goal is to educate our Clients, providing advice and counsel to guide our Clients through the often treacherous waters of Loss Mitigation. We are committed to researching, formulating and finally executing the best Foreclosure Defense and Loss Mitigation strategy for our Clients. We are ready to help with your loss mitigation case and serve Clients in the greater Chicago, IL area as well as Cook, DuPage, Will, Lake, Kendall, and Kane County. This is our Commitment to all our Clients.

Common Questions:

What is Loss Mitigation?

What is a Repayment Plan Loan Modification?

What is Reinstatement of the loan?

What is Redemption of the property?

What is a Deed-In-Lieu Of Foreclosure?

What is a Short Sale?

Can I refinance or sell my house?

What is Foreclosure Defense?

What is Foreclosure Offense?

QUESTION: What is Loss Mitigation?

ANSWER: LOSS MITIGATION: Loss Mitigation is a general term used to describe the various options available to a property owner experiencing difficulty with a mortgage or any other consumer transaction. Loss Mitigation is commonly associated with the term Loan Modification. A type of Loss Mitigation is known as Loan Modification. Examples of Loss Mitigation possibilities include, but are not limited to the following:

1. Loan Modification: The term Loan Modification would mean to adjust the terms of the mortgage from their original form. For example, reaching an agreement with the Lender that the Borrower’s interest rate would be adjusted from an 8.75% interest rate down to a 4.75% interest rate and changing the amortization from 30 to 40 years, are both examples of Loan Modifications.
2. Foreclosure Defense/Offense: Legally referred to as Affirmative Defenses and Counterclaims. The goal of a proper Foreclosure Defense/Offense would result from an in-depth study of all the documents and the specific narrative of the Client/Borrower to defend the rights of the Borrower and attack the foreclosure suit offensively if the Borrower has been a victim of any Federal, State or common law violations.
3. Repayment Plan: Also commonly referred to as a Loan Modification which would mean to come to an arrangement with the Lender to continue to pay the mortgage and pay a monthly fee to cover back payments.
4. Short Sale: If the Borrower is unable to maintain the payments upon the Subject Property or if they believe they need to sell the Subject Property to avoid a deficiency judgment, it is possible that the Lender may be able to accommodate the Borrower by agreeing to a short payoff by accepting an amount less than the full payoff of the original loan. A qualified buyer is required. A qualified Attorney is absolutely needed for this process to negotiate and avoid any deficiencies by severing all future liability.
5. Deed In Lieu Of Foreclosure: If the Borrower is unsuccessful in selling their home and their home has been on the market (at fair market value) for usually at least 90 days, they may be eligible for a Deed In Lieu Of Foreclosure. In exchange for the Deed In Lieu Of Foreclosure, the Lender will waive all deficiency judgment rights. A qualified Attorney is absolutely needed for this process to negotiate and avoid any deficiencies by severing all future liability.
6. Reinstatement: Reinstatement of the loan is a right given by the Illinois Mortgage Foreclosure Act which allows the Mortgagor (the Borrower) to cure the default by making the lump sum payment of everything owed in back payments also known as the mortgage arrearage, past payments, penalties, cost of collection and Foreclosure and legal fees to date if said fees are approved by the court. You do not need to come up with the entire principal. The right to reinstate belongs to the parties on the mortgage and the right is valid for 90 days after the parties have been served by legal process, which is measured from the date the Summons and Foreclosure Complaint is delivered to the Borrower (served).
7. Special Forbearance: (FHA loans only) (Type I & II) If the Borrower’s loan is 90 days to 365 days past due, their Lender may consider a Special Forbearance. A Special Forbearance is designed to provide the Borrower with more relief than is possible with a regular repayment plan.
8. Partial Claim: (FHA Mortgages Only) (Some Freddie Mac Investor Loans) A Partial Claim is a Subordinate Mortgage (2nd Mortgage) between the Borrower and the Secretary of Housing and Urban Development. The Partial Claim Note will commence payment at the maturity date of the First Mortgage and carry no interest and will include the past due payments due on the loan. Only loans that are 120 to 365 days past due may qualify for this option.
9. VA Loan Modification/Refunding: A Refunding occurs when the Veterans Administration buys the loan from the Lender. Refunding may give the VA the flexibility to consider options to help the Borrower to save their home that their current Lender either could not or would not consider.
   
   A Short Sale, Deed In Lieu of Foreclosure, Repayment Plan, Reinstatement Plan, Foreclosure Defense, to name only a few would all be options in a Loss Mitigation conducted by the Law Offices of Sulaiman & Associates. Please note these are only a summary of the solutions and options available in a Loss Mitigation Consultation. Guidelines and qualification requirements vary by lender.

QUESTION: What is a Repayment Plan/ Legal Loan Modification?

ANSWER: LEGAL LOAN MODIFICATION: Also known as a Loan Modification Plan, a Repayment Plan is designed to reinstate the loan and refers to changing the terms of the original mortgage. It is an agreement between the property (home) owner and the Lender to bring the mortgage current over time. It is extremely difficult to describe a standard Loan Modification Plan – Repayment Plan as no two circumstances are exactly the same. Recently, Countrywide Home Loans, pursuant to a settlement agreement with the Illinois Attorney General has allowed for some standardized Loan Modifications. Most Loan Modifications are tailored made to what the Borrower can afford and what the Lender will accept. Our Attorneys negotiate Loan Modifications – Repayment Plans. What differentiates our Firm from everyone else is that we will only present a Loan Modification – Repayment Plans as a settlement and not as a Reinstatement, an important distinction for those who are aware of the intricacies of the Illinois Mortgage Foreclosure Act. Our Loan Modification – Repayment Plans are reviewed by our Attorneys to ensure the best outcome for our Clients.

Prior to the current financial crises the terms of a Loan Modification – Repayment Plan commonly provided for a payment of ? of the arrearage (back payments) as a down payment and 1 ? payments a month until the account is brought current.

In the current market environment, provided the Loan Modification – Repayment Plan is properly presented to the Lender, a far better outcome is secured for our Clients which in the recent past have included:

1. Reduced Monthly Payment
2. Reduced Interest Rate
3. Fixed Interest Rate: 30 Years to 40 Years Amortization
4. Reduced Principal
5. Adding back payments to the principal
6. Extending the term of the mortgage

Lenders are not under any obligation to enter into a Loan Modification agreement. What our Clients often find is that it is very similar to having a second job trying to conduct and conclude a Loan Modification on satisfactory terms. Our Firm handles this matter from beginning to end. Because the Lender is under zero obligation to enter into a Loan Modification agreement, the negotiations are usually intricate and complex. In the future, and in the event the Federal Bankruptcy Laws are changed, which seems more and more likely, the Federal Bankruptcy Court Judges shall be able to Judicially Modify the loans for our Clients. Please inquire as to the benefit this may have to your situation and what you need to do right now to prepare for the change in the Bankruptcy Laws by setting up your initial consultation today.

QUESTION: What is Reinstatement of the loan?

ANSWER: REINSTATEMENT: Reinstatement of the loan is a right given by the Illinois Mortgage Foreclosure Act which allows the Mortgagor (the Borrower) to cure the default by making the lump sum payment of everything owed in back payments also known as the mortgage arrearage, past payments, penalties, cost of collection and Foreclosure and legal fees to date if said fees are approved by the court. You do not need to come up with the entire principal. The amount to reinstate will be provided by the Attorney for the Lender. The amount for the Reinstatement provided by the Bank or their Attorneys is often incorrect. Please beware when reviewing the Reinstatement amount. The right to reinstate belongs to the parties on the mortgage and the right is valid for 90 days after the parties have been served by legal process, which is measured from the date the Summons and Foreclosure Complaint is delivered to the Borrower (served). After 90 days the Lender does not have to allow the Borrower to reinstate under the Illinois Mortgage Foreclosure Act. The right is only available once every five years. If you reinstated this loan less than five years ago and are now again in Foreclosure, your Lender does not have to accept your payment and reinstate the loan. When you reinstate the loan you start making payments as before and the Foreclosure case that was pending against you is fully dismissed.

QUESTION: What is Redemption of the property?

ANSWER: REDEMPTION: Redemption is the act of paying off the delinquent loan in full. Redemption is paying everything that is owed: principal, interest, cost of collection and Foreclosure and Attorney fees. You have the right to pay off the loan during the redemption period which, for residential property, expires 7 months from the date of service of the foreclosure complaint or 3 months from the date the judgment of foreclosure is entered, whichever is later. For example, in Cook County customarily the sale is set for a date after which the right of the redemption has expired. If the property goes back to the Lender after the sale there is a short period in which the property can be redeemed within certain other exceptions. The time periods change from time to time. Our Attorneys are versed in this right and the important time constraints. Commonly, Redemption occurs either through a sale or a refinance of the property. It is urgent that a default judgment or judgment is not entered against you, as the timeline for the loss of your property or home is accelerated after those events occur.

QUESTION: What is a Deed-In-Lieu Of Foreclosure?

ANSWER: DEED-IN-LIEU OF FORECLOSURE: A Deed In Lieu of Foreclosure is a voluntary transfer of the property to the Lender in full satisfaction of the amount owed. By accepting the Deed In Lieu of Foreclosure, the Lender releases you from personal liability on the loan also known as a deficiency judgment, deficiency amount or just deficiency. Commonly, Lenders will not accept a Deed In Lieu of Foreclosure if there are other liens on the property. In our practice, we have been able to secure Deeds In Lieu of Foreclosure by settling with the secondary Lender and other lien holders, effectively clearing title for the Lender to facilitate the transfer. It is an intricate process and requires a full review of your file to come to a conclusion if this is even a good option for you. A qualified Attorney is absolutely needed for this process to negotiate and avoid any deficiencies by severing all future liability.

QUESTION: What is a Short Sale?

ANSWER: SHORT SALE: You can sell your home anytime before the Foreclosure matter is complete. The Foreclosure matter is complete at such time as the Redemption period discussed above has expired. However, once the Foreclosure has been filed the number of buyers willing to buy at retail and Lenders willing to refinance a Borrower already behind in payments all but disappear. People do not want to pay retail when they find a house in Foreclosure. Everyone wants to get the best deal possible. A Short Sale occurs when the Borrower owes more on the loan than the house is worth, and a Buyer agrees to pay an amount that is not sufficient to pay off that Borrower’s loan balance. For a Short Sale to be a Short Sale, your Bank would have to accept an amount less than the full loan payoff. A Short Sale is a settlement agreement. Because it is a settlement agreement, no two Short Sales are the same. You may be liable for taxes related to the amount of debt from your original mortgage that is forgiven, but current laws may protect you from such taxes if it is your primary residence. Your Lender may also request as part of the settlement to pay the Lender back the amount the Lender did not collect at the time of the sale of the property. If you have a great deal of equity in your property, there are a number of solutions available but they must be acted upon immediately since your equity shrinks with each passing day. Again, do not deed your home to anyone without at LEAST first consulting with an Illinois Licensed Attorney. We can assist you in every step of the Short Sale process. A qualified Attorney is absolutely needed for this process to negotiate and avoid any deficiencies by severing all future liability.

QUESTION: Can I refinance or sell my house?

ANSWER: You can refinance your home anytime before the Foreclosure matter is complete. The Foreclosure matter is complete at such time as the Redemption period discussed above has expired. However, once the Foreclosure has been filed the number of buyers willing to buy at retail and Lenders willing to lend to someone already behind in payments dwindle. Your Bank will usually not accept a short-payoff on a refinance. New Lenders do not want to take a chance on someone who has not been making their payments in regards to a refinance.

QUESTION: What is Foreclosure Defense?

ANSWER: FORECLOSURE DEFENSE: Also known as Affirmative Defenses. The goal of a proper Foreclosure Defense would result from an in-depth study of all the documents and the specific narrative of the Client/Borrower. As the needs of every Client differ, each Foreclosure Defense must be tailored to the Client’s specific situation and goals. Sometimes the Client requires time. Time to bring back payments current; Time to refinance; Time to sell; Time to find alternate housing; Time to discover what claims to bring against the Lender or others involved in the transaction that has resulted in a foreclosure filing; Time for more favorable laws to be passed to help the Client. The Client needs an experienced Attorney to navigate the treacherous and unfamiliar territory of the Judicial System. Sometimes the Client needs to just walk away from the property and needs to know how to do it legally with as little liability as possible.

QUESTION: What is Foreclosure Offense?

ANSWER: FORECLOSURE OFFENSE: Also known as Counterclaims. A Foreclosure Offense occurs when our experienced Attorneys discover in the study of the Client’s file and review of the Client’s narrative, that there may have been potential State, Federal or Common Law violations of the rights of the Client/Borrower. We then go on the Offense against the Lender and the other actors who conspired against our Client/Borrower. The fact of the matter is that the current financial environment we are in is a result of all the actors in the financial markets not following the law. Job One for the Law Offices of Sulaiman & Associates is to bring those to account who caused your financial hardship. Fight Back!

DESCRIPTION:
Lenders are not under any obligation to enter into a Loss Mitigation settlement with their Lender. What our Clients often find is that it is very similar to having a second job trying to conduct and conclude a Loss Mitigation plan with satisfactory terms to the both the Borrower and the Lender. Our Firm handles this matter from beginning to end. Because the Lender is under zero obligation to enter into a Loss Mitigation agreement, the negotiations are usually intricate and complex. In the future, and in the event the Federal Bankruptcy Laws are changed, which seems more and more likely, the Federal Bankruptcy Court Judges shall be able to Judicially Modify the loans for our Clients.
Please inquire as to the benefit this may have to your situation and what you need to do right now to prepare for the change in the Bankruptcy Laws by setting up your initial consultation today. Please take the time to find and speak to the most qualified people in this Specialized Field of Law. Contact us today at (630) 575 – 8181 for an initial consultation with an Illinois Licensed Attorney.

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