Default Services

  • American Bar Association
  • Illinois State Bar Association
  • The Chicago Bar Association
  • Transporation Lawyers Association
  • Avvo

    Skokie Default Servicing Attorney

    Personalized and Experienced Legal Assistance to Cure Your Default

    If a homeowner is falling behind on monthly mortgage payments or has otherwise breached the terms of the mortgage loan contract, you can take action to mitigate your losses by entering default servicing. RDS Law Offices LLC is particularly skilled at handling default services in the context of commercial, real estate, and other property-related legal issues. We will do our best to protect your commercial interests and minimize your losses.

    Contact RDS Law Offices LLC online for a free consultation to discuss your next steps.

    Default Servicing Options

    When a homeowner becomes delinquent (falls behind on their payments) or when default appears imminent, the borrower will enter default servicing, often referred to as loss mitigation. Ultimately, the goal of default servicing is to minimize the losses of both the investor and the homeowner. There are several options you can pursue in default servicing:

    • Repayment plan – this can give a borrower a set period of time to bring a mortgage current by making regular monthly payments, as well as an additional amount to repay the delinquency.
    • Forbearance – the homeowner’s monthly payments will be temporarily suspended
    • Loan modification – the lender can change the homeowner’s monthly payment by altering the original mortgage terms, such as by reducing the interest rate, extending the length of time available to the homeowner to repay the loan, or even reducing the principal owed on the loan.

    Transferring Ownership

    If a homeowner is unable to make monthly payments or afford the home with the above methods, the servicer will likely have to transfer ownership of the home to the mortgage holder. One way to transfer ownership at this stage in default servicing is to sell the home for less than what is owed on the mortgage (called “short sale”) if both the lender and the borrower agree. Alternatively, the homeowner could transfer the property deed to the lender in return for a release from the rest of the mortgage (called “deed in lieu of foreclosure”). If short sale or deed in lieu of foreclosure fails, the service can initiate foreclosure. If the homeowner has not vacated the property by the time the foreclosure is completed, the servicer may begin an eviction.

    Note that default servicing also includes property preservation after the homeowner vacates the property. This involves maintaining the property until it can be returned to the investor or insurer, including protecting against trespassers, overseeing any necessary repairs, managing monthly 

    • “Professionalism and tenacity are ingrained in his DNA; it is no act, that is just his disposition.” - Jeff P
    • “Communication was great and the outcome of my case was far better than expected.” - Preston R
    • “I was given great advice, his insight and experience into the matter was very helpful.” - Kevin W

    Contact Our Firm

    RDS Law Offices, LLC

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