Know how IL foreclosure will affect you

Laws on foreclosure vary considerably by state so you should be familiar with at least a summary of foreclosure laws in Illinois. You should also read your loan documents to know what your lender can do if you can't make your payments.

I recommend: American Foreclosure Specialists provides a description of possible strategies for avoiding a foreclosure on your home. ForeclosureS.com provides the contact information for the Attorney General’s Office in Illinois and links to specific legislation regarding foreclosure in Illinois.

Get assistance with Illinois foreclosure solutions

There are housing counselors and online resources available to help you understand your options, assist you in organizing your finances and negotiate with your lender if needed.

I recommend: The Department of Housing and Urban Development provides contact information for approved housing counselors in Illinois that are available for free or very low cost. Visit the National Foundation For Credit Counseling’s Homeowner Crisis Resource Center for information and tools to get started understanding your foreclosure options.

Retain an Illinois foreclosure attorney

You may need of the available Illinois foreclosure lawyers to protect your interests, especially if you need to sign documents. If your regular attorney does not handle Illinois foreclosure law, he or she may be able to make a referral.

I recommend: Keil M. Larson in Chicago concentrates on real estate law, including residential foreclosures. Mark J. Rose is an expert in bankruptcy law and advises clients on real estate transactions.

Watch out for mortgage recovery scams

The Federal Trade Commission warns that there are plenty of bad guys operating in the foreclosure recovery business who will take your money and provide no service. Some warning signs, according to the FTC: advertising terms like "guarantee" and "97% success rate", upfront fees before services and company names or websites designed to make you think you're dealing with a government or nonprofit agency.

I recommend: Educate yourself about foreclosure recovery scams through the Federal Trade Commission.  The FTC recommends you only seek foreclosure help from government sanctioned counseling agencies like the ones recommended by the U.S. Department of Housing and Urban Development or the federal Making Home Affordable program.