Algonquin Il homes for sale
The Watz Team
----The Watz Team---- 847-854-3800

Foreclosure Alternatives

McHenry County's #1 Foreclosure Agent with 9 years in Short Sale Certification

(Personally saving HUNDREDS of local people from foreclosure)



Are your house payments too much to handle? Have you been served a Notice Of Default or are  you in Foreclosure?

Do you owe more than your house is worth?

Do you want to stay in your house?

Whether you are behind in your mortgage payments, or are trying to stay afloat borrowing from your credit cards to pay your mortgage,  we want you to know there are alternatives and ways out, NO MATTER WHAT YOU OWE.  

You are NOT alone.  Over 26% of the public is in the same situation.

What happens when you miss mortgage payments?

Foreclosure may occur. This is the legal means that your lender can use to repossess (take over) your home. When this happens, you must move out of your home. If your property is worth less than the total amount you owe on your mortgage loan, a deficiency judgment could be pursued and your wages might be garnished.  If that happens, you won’t just lose your home. Both foreclosures and deficiency judgments could seriously affect your ability to qualify for credit in the future; you should try stopping foreclosure if possible. You will be served with a Notice of Default after being 90 days late, but do NOT move out until you consult an attorney or a licensed Real Estate agent.  There will most likely be plenty of time left to help you select the right alternative. 

What Should You Do?

DO NOT IGNORE THE LETTERS FROM YOUR LENDER. If you are having problems making your payments, call your lender's Loss Mitigation Department immediately. Explain your complete situation. Be prepared to provide them with financial information, such as your monthly income and expenses. Without this information, they usually will not help you. Stay in your home for now. You may not qualify for assistance if you abandon your property.  Call us to do a loan modication or talk about a short sale at 847-809-5155 or contact a HUD-approved housing counseling agency. Call (800) 569-4287 or TDD (800) 877-8339 for the housing counseling agency nearest you. These agencies are valuable resources. They frequently have information on services and programs offered by Government agencies as well as private and community organizations that could help you. The housing counseling agency may also offer credit counseling. These services are usually free of charge.

Beware of Scams

Beware of foreclosure scams and anyone claiming they will buy your home.  Visit for a list of the latest scams.


Stop your foreclosure now! Delaying won't help. If you do nothing, YOU WILL LOSE YOUR HOME, your good credit rating and may have your wages garnished!  Yes you can stay in your home during the process and it is possible to sell it EVEN if you owe more than it is worth.  Always consult an attorney.

A foreclosure will stay on your record for 7 years and you will not be able to purchase a government backed home for 5 years.  A bankruptcy stays on your record for 10 years and usually only forgives the old debt.  Your mortgage payments will resume once the bankruptcy is dismissed.   A short sale hurts your credit score temporarily and as soon as the loan is released, your credit starts mending itself so it may be possible to purchase a home within a year or 2.  Why not look into a rent with option?

In addition, if you have any general questions about buying or selling real estate in Illinois, please contact me as I'm more than willing to help. My cell is 847-809-5155.



Alternative #1: Special Forbearance.

Your lender might be able to arrange a repayment plan based on your financial situation and may even provide for a temporary reduction or suspension of your payments. You may qualify for this if you have recently experienced a reduction in income or an increase in living expenses. The lender will expect you to furnish information to your lender to show that you would be able to meet the requirements of the new payment plan.

Alternative #2: Mortgage Modification.

You may be able to refinance the debt and/or extend the term of your mortgage loan. This may help you catch up by reducing the monthly payments to a more affordable level. You may qualify if you have recovered from a financial problem and can afford the new payment amount.  Again call your lender.

Alternative #3: Partial Claim if you have a FHA loan.

Your lender may be able to work with you to obtain a one-time payment from the FHA-Insurance fund to bring your mortgage current. You may qualify if:

  • your loan is at least 4 months delinquent but no more than 12 months delinquent;
  • you are able to begin making full mortgage payments.

When your lender files a Partial Claim, the U.S. Department of Housing and Urban Development will pay your lender the amount necessary to bring your mortgage current. You must execute a Promissory Note, and a Lien will be placed on your property until the Promissory Note is paid in full.The Promissory Note is interest-free and is due when you pay off the first mortgage or when you sell the property.

Alternative #4: Pre-foreclosure sale  - AKA Short Sale

This will allow you to avoid foreclosure by selling your property for an amount less than the amount necessary to pay off your mortgage loan. This works no matter how much you owe.  You may qualify if:

  • Your loan is at least 2 months delinquent;
  • You are able to sell your house (usually with a licensed real estate agent)
  • A new appraisal (that your lender will obtain) shows that the value of your home meets their guidelines.
  • The agent will work with the lender to get an offer approved for less than what is owed on the house.
  • The lender then releases you from the mortgage and your credit only suffers temporarily.
  • You will be asked to prove insolvency (your debts out weigh your assets)

Alternative #5: Deed-in-lieu of foreclosure.

As a last resort, you may be able to voluntarily "give back" your property to the lender. This won't save your house or forgive the debt, but it is not as damaging to your credit rating as a foreclosure. You can qualify if:

  • You are in default and don't qualify for any of the other options;
  • Your attempts at selling the house before foreclosure were unsuccessful; and
  • You don't have another FHA mortgage in default.
  • You have equity in the house.

 How Do I Know if I Qualify for Any of These Alternatives?

Your lender will determine if you qualify for  alternatives 1 through 3.  A CERTIFED Short Sale or foreclosure expert, licensed Real Estate agent  (like me) can determine if a Short Sale will work.. A housing counseling agency can also help you determine which, if any, of these options may meet your needs and also assist you in interacting with your lender. 

Please browse my website for available rentals, reports and important local real estate information for the state of Illinois.

If you have any questions, don't hesitate to email or call me!  Our services never cost you a dime!

Vicki Watzlawick

Broker, Team Lead,  The Watz Team with 34 years in the Real Estate and Construction Industries.

CERTIFIED Foreclosure Expert of 9 years,   607 N. Harrison, Algonquin, IL   847-854-3800                   

Co-Author "Should I Short Sale My Home?"