Foreclosure

[ikeman]

I am from Illinois.

My sister-in-law and her parents purchased a farmette a couple of years ago. The downpayment was one third of the purchase price. Her father lost his job and is no longer making an effort to pay the mortgage (30 year fixed), leaving her with the impossible task of paying all the bills. They are now 2 months behind on the mortgage and the bank has issued a 2nd warning of foreclosure. The house is currently on the market for sale and the bank knows this fact. Assuming that the bank must go through a judicial foreclosure process:

Question1:

Can she protect her home from the foreclosure process based on the fact that they have 1/3 equity in the home?

Questions 2 and 3:

What is a "homestead exemption" and How can they use this to prevent foreclosure?

Question4:

Since the bank knows that the house is up for sale, are they required to allow the borrower time to sell the property?

 

[HomeGuru]

1, No.
2. search the internet
3. will not protect property owner in the event of foreclosure although may be used in BK.
4. No.

 

[ikeman]

Home Guru. Thank you for your response. I'm curious to know what your credentials are?

 

[ikeman]

HomeGuru, I just saw your profile. Nevermind the last question. Thanks again.

 

[HomeGuru]

ok.