Legal Question in Real Estate Law in Illinois

First, do not necessarily give up on a loan modification or deed in lieu of foreclosure. You may want to find someone to assist, but be wary of scams. I know a few people who have consulted with Ray of Hope Negotiations, 815-271-5600.

Next, if a judgment is entered, the usual avenues of collection are:

1. Wage Garnishment. There is a limit on how much can be taken from each check.

2. Non-wage Garnishment. This would usually be the garnishment of a bank account. Subject to your personal exemptions from judgments, they can take whatever they find in your account on the day they serve the garnishment.

3. Citation to Discover Assets. Bringing you back into court to testify concerning your assets. If you repeatedly do not appear, an arrest warrant can be issued. The court can order turnover of assets found.

4. Third-party citation. Request made on a third-party to answer concerning assets they may hold. This is often used instead of a non-wage garnishment because it remains active. So, for example, if served on your bank and you later deposit money into the account, you could, subject to your exemptions, lose that money.

If this is likely to lead to a bankruptcy on your part, I encourage you to consider that sooner, rather than later. Too many people exhaust all their resources unnecessarily, only to eventually file bankruptcy anyway.

The scope of this space does not afford an opportunity to assess the situation and advise you. I recommend you assemble for legal consultation: (1) your income information for December 2011 through the present, including wages and unemployment during that period; (2) all your bills (copies neatly assembled, back pages included); (3) last four years� tax returns; (4) a credit report (use www.annualcreditreport.com to obtain free report if not requested in last year); and (5) other information that may apply, such as copies of lawsuits. Call at your earliest convenience to afford the most opportunity in which to be advised about your best course.

I do not recommend filing bankruptcy on your own. There are too many complex issues. I have seen several posts on this site for debtors who filed on their own and are seeking counsel concerning complications. Most of them will have a hard time finding an attorney to get involved to unwind the mess without the attorney charging several times what would originally have been paid.

Get involved in the foreclosure. The courts will want to know if there is any way you and the lender can work together to avoid foreclosure. Consider hiring an attorney. Don't wait for them to steamroll over you!