Illinois Short Sale Solution Center
John Zhang


Keys Reasons to Avoid Foreclosure

MINIMIZING  damage to the credit. Foreclosure and bankruptcy are public records that cause fatal damage to credit scores (foreclosure up to 7 years and bankruptcy up to 10 years).

MAINTAINING control and integrity. Eviction is an unpleasant experience where the borrower is forced to lose the house against his/her will.


Ways Foreclosure Can Affect You


  • A foreclosure will remain as a public record on a person’s credit report for 10 years or more.
  • Credit scores could drop 250 to over 300 points.
  • A foreclosure affects the score for over 3 years.


Employers have the right and are actively checking the credit regularly of all employees who are in sensitive positions. A foreclosure, in many cases, is ground for immediate reassignment or termination.


Many employers are requiring credit checks on all job applicants. A foreclosure is one of the most detrimental credit an applicant can have and in most cases will challenge employment.


Alternatives to Foreclosure

REPAYMENT PLAN: Delinquent payments distributed over a period of time and added to the original monthly payment amount.

FOREBEARANCE: Temporarily allows homeowner to pay  less than the amount due or suspend payments entirely for a spicified period of time.

LOAN MODIFICATION: Applies past due interest and escrow amounts to the unpaid principle and r-amortizes the loan over a new term.

SHORT SALE: Allows homeowners to sell home for less than is owed.

DEED IN LIEU OF FORECLOSURES: Allows homeowner to voluntarily transfer property back to the bank in exchange of forgiveness of debt.

BANKRUPTCY: If it is other loans, such as unsecured debt (credit cards, medical bills, etc.) that is making your mortgage un-affordable, you could file for bankruptcy but reaffirm your mortgage and car to keep those.


About John Zhang

Picture of John Zhang

John Zhang

Broker Associate, ABR®, SRS®, PSA®, CNE®, e-PRO®

224-532-1503224-532-1503 mobile

Re/Max Signature Homes

22 N. Lincoln St. Hinsdale, IL 60521 wechat ID: SMSMFY


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John is awesome. He's the real deal. He helped me and my husband to get the deal we wanted. We're just glad we found him. He understand the word commitment and a man of integrity. He's very sincere and ...


I had a great experience working with John. I couldn’t believe how responsive he was to all of our requests and questions, and he knew far more than I ever hoped to about the process of buying a home.
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