Navigating Foreclosure in Chicago • June 12, 2025

What Happens to Your Credit Score After Foreclosure?

by Molly Heyen

Piggy bank with coins on a table with a calculator.

Understanding the Credit Impact of Foreclosure and Your Next Steps

Introduction:
If you’re facing foreclosure, you may be wondering how it could affect your credit and what that means for your future. While foreclosure typically results in a credit score drop, it’s important to remember that this impact lessens over time, and many property owners go on to recover financially.

This post provides general information on how foreclosure may influence your credit report and what you can do to start moving forward. If you have concerns about your financial situation, I encourage you to speak with a financial professional or credit specialist who can provide personalized guidance.

How Foreclosure Can Affect Your Credit Score

There is no exact number for how much a foreclosure will impact a credit score, as every individual’s credit profile is different. However, reports from credit experts suggest that:

If your credit score was above 700, you could see a drop of 100-160 points.
If your credit score was below 600, the impact might be lower, around 60-100 points.

Other Factors That May Affect the Impact:

Your overall credit history before foreclosure
How many late payments you had leading up to foreclosure
Whether you have other accounts in good standing

Because credit scoring models are complex, consulting a financial professional can help you understand your specific credit situation.

Piggy bank with coins on a table with a calculator.

How Long Does Foreclosure Stay on a Credit Report?

Foreclosure is typically reported on your credit history for seven years from the date of your first missed payment that led to the foreclosure. However, its impact lessens over time, especially if positive credit habits are maintained.

Steps That May Help with Credit Recovery:

Continuing to pay all other bills on time
Keeping existing credit accounts open to maintain credit history
Avoiding unnecessary new credit applications

For guidance on credit rebuilding strategies, consider speaking with a certified credit counselor or financial advisor who can provide tailored advice.

Can You Buy Property After Foreclosure?

Yes, many people who experience foreclosure later go on to buy property again. However, there are waiting periods before you may qualify for different mortgage programs.

Common Waiting Periods Before Mortgage Eligibility:

FHA Loans: 3 years
VA Loans: 2 years
Conventional Loans (Fannie Mae/Freddie Mac): 7 years (may be reduced in certain cases)
USDA Loans: 3 years

Since loan programs and eligibility rules change over time, it’s best to consult a mortgage professional to understand your specific options.

Where to Get Help with Credit Recovery

If you’re concerned about how foreclosure may affect your credit and financial future, there are professionals who specialize in credit counseling and financial recovery.

1. Check Your Credit Report for Accuracy

You’re entitled to a free credit report each year from:
AnnualCreditReport.com

If there are inaccuracies related to foreclosure or other accounts, you may need to dispute them with the credit bureaus. A credit professional can help review your report and identify potential errors.

2. Consider Speaking with a Certified Credit Counselor

Credit counseling agencies can provide general information on managing debt, improving credit habits, and exploring potential financial options. Look for reputable nonprofit organizations, such as:

National Foundation for Credit Counseling (NFCC)

They may be able to help you understand potential next steps based on your specific situation.

3. Work with a Financial Professional

If you have questions about budgeting, rebuilding credit, or managing financial challenges, a financial professional can provide personalized advice. They can help you evaluate your situation and explore options for financial stability.

Final Thoughts: Moving Forward After Foreclosure

While foreclosure can be a difficult experience, it doesn’t mean the end of financial stability. Many people are able to rebuild their credit over time and regain financial security.

If you’re still in the early stages of financial difficulty and want to discuss options for your property, I’m happy to connect and share general insights based on my experience working with property owners. I’d love to help you explore the best path forward.

Building an Equitable Chicago • June 10, 2025

Navigating Chicago’s Zoning Laws: A Guide for Equitable Developers

by Molly Heyen

Screen Shot of Chicago's Zoning Map focused on the greater downtown area.

Introduction:
Understanding Chicago’s zoning laws is crucial for equitable developers looking to create community-driven projects. Whether you’re planning affordable housing, a mixed-use development, or a commercial revitalization project, zoning regulations dictate what can be built, where, and how. In this post, we’ll break down Chicago’s zoning laws, highlight key considerations for equitable development, and provide strategies for navigating the approval process.

1. Understanding Chicago’s Zoning Code

Chicago’s zoning laws regulate:

Land Use: Residential, commercial, industrial, or mixed-use designations.
Density & Height Limits: How many units or stories can be built on a parcel.
Parking & Setback Requirements: How much space must be allocated for parking and how far structures must be from property lines.
Affordable Housing Requirements: Developments above a certain size may have to include affordable units or contribute to a city fund.

The city’s zoning code is divided into districts and subzones, each with specific regulations. The most common types for equitable developers include:

B (Business) & C (Commercial) Districts: Allow for mixed-use developments, often with residential units above retail.
RT & RM (Residential Multi-Unit) Districts: Used for apartment buildings and affordable housing projects.
PD (Planned Development) Zoning: Used for large-scale projects that require flexible zoning allowances.

2. Key Zoning Considerations for Equitable Development

Adaptive Reuse & Special Use Permits

Converting old warehouses, schools, or churches into residential or commercial spaces may require a zoning variance or special use permit.
The city encourages adaptive reuse projects in disinvested areas but requires compliance with historic preservation rules if applicable.

Affordable Housing & the ARO (Affordable Requirements Ordinance)

If building 10+ residential units and receiving city assistance (TIF, land, or zoning change), developers must:
- Set aside at least 10-20% of units as affordable, or
- Pay into the Affordable Housing Opportunity Fund.
Developers can also partner with nonprofits to integrate deeper affordability options.

Inclusionary Zoning & Community Benefits

Some neighborhoods require community input before approving zoning changes.
Developers may need to negotiate with aldermen and local organizations to gain support.

Screen Shot of Chicago's Zoning Map focused on the greater downtown area.

3. Navigating the Zoning Approval Process

Step 1: Determine the Property’s Zoning Classification

Use the Chicago Zoning Map to check zoning designations for a specific property.
Identify any overlay districts or historic designations that may impact development.

Step 2: Confirm if a Zoning Change or Variance is Needed

If the proposed project doesn’t conform to existing zoning, developers must apply for a zoning change or variance.
This requires working with the Alderman’s office, Zoning Board of Appeals, and Department of Planning & Development.

Step 3: Engage the Community & Local Officials Early

Many zoning changes require community meetings and aldermanic approval.
Developers should present plans, listen to concerns, and adjust proposals accordingly.

Step 4: Submit Zoning Applications & Secure Approvals

If needed, apply for a Planned Development (PD) designation for large projects.
Work with zoning attorneys and consultants to streamline the process.

Step 5: Finalize Permits & Begin Construction

Once zoning approvals are secured, apply for building permits and begin the development process.

4. Common Zoning Challenges & Solutions

Challenge: Resistance from Community or Alderman

Solution: Build relationships early, align project goals with community needs, and demonstrate long-term benefits.

Challenge: Lengthy Approval Process

Solution: Work with a zoning expert or real estate agent to anticipate delays and navigate bureaucracy efficiently.

Challenge: Affordable Housing Compliance Costs

Solution: Utilize incentives like TIF funding, LIHTC, or ARO fee-in-lieu options to offset costs.

5. Case Studies: Developers Who Navigated Zoning Successfully

PODER Headquarters (Gage Park): Rezoned a former industrial site into a nonprofit workforce training hub.
The Terminal (Humboldt Park): Adaptively reused historic factory buildings for creative office space.
40th & Lake Park (Kenwood): Used a Planned Development (PD) designation to build a mixed-income residential project.

How I Can Help as Your Real Estate Agent

Identifying Properties with Favorable Zoning for Equitable Development: I’ll help you find sites that align with your project goals.
Navigating Zoning Applications & Variances: I’ll connect you with zoning attorneys, city officials, and community organizations.
Advising on Incentives & Affordable Housing Requirements: I’ll ensure you maximize available funding while staying compliant with regulations.
Facilitating Community Engagement & Approval Strategies: I’ll guide you through securing neighborhood and aldermanic support.

Conclusion:

Zoning laws can make or break an equitable development project. By understanding key regulations, leveraging incentives, and engaging stakeholders early, developers can turn zoning challenges into opportunities. If you need help finding the right property or navigating Chicago’s zoning landscape, let’s connect.

Navigating Foreclosure in Chicago • June 5, 2025

Understanding the Foreclosure Timeline in Illinois

by Molly Heyen

Illustrated timeline of the foreclosure process in Illinois

How Long Does Foreclosure Take in Illinois? Key Milestones and What to Expect

Introduction:
If you’ve fallen behind on mortgage payments, you might be wondering how much time you have before foreclosure is final. Understanding the foreclosure process can help you make informed decisions and explore possible solutions before it’s too late.

Illinois is a judicial foreclosure state, which means lenders must go through the court system to complete a foreclosure. This typically makes the process longer than in non-judicial states, giving property owners more time to take action.

Here’s a general breakdown of the foreclosure timeline in Illinois and what you can do at each stage.

Illustrated timeline of the foreclosure process in Illinois

Step 1: Missed Mortgage Payments (Day 1-90)

What Happens?

Most lenders allow a 15-day grace period before considering a payment late.
After 30 days, the loan is officially delinquent, and late fees may be added.
At 60-90 days, lenders typically send a Notice of Default (NOD) or warning letter.

What You Can Do:

Reach out to your lender—Many offer temporary forbearance or repayment plans.
Speak with a HUD-approved housing counselor to explore assistance programs.
Review your options for loan modification, refinancing, or other alternatives.

Step 2: Pre-Foreclosure & Demand Letter (Around Day 90-120)

What Happens?

After 90+ days of missed payments, the lender may send a Demand Letter requiring payment by a specific deadline.
If payment is not made, the lender may file a foreclosure lawsuit in court.

What You Can Do:

Negotiate with your lender to explore a repayment plan or loan modification.
Seek legal advice if you want to contest the foreclosure.
Consider selling your property—Some owners opt for a quick sale to avoid foreclosure.

Step 3: Foreclosure Lawsuit & Court Process (Day 120+)

What Happens?

The lender files a foreclosure lawsuit, and you’ll receive a Summons & Complaint.
You have 30 days to respond in court.
If you don’t respond, the lender may request a default judgment, moving the process forward.
If you respond, the case goes through the legal process, which could take months to over a year.

What You Can Do:

File a response in court—If you believe there’s a legal defense, a foreclosure attorney can advise you.
Explore mediation—Some Illinois courts offer foreclosure mediation programs.
Continue seeking alternatives—Even at this stage, options like selling or working out a settlement may still be possible.

Step 4: Judgment & Redemption Period (6-12+ Months In)

What Happens?

If the court rules in favor of the lender, a Judgment of Foreclosure is issued.
Illinois law provides a redemption period, typically 90 days to 6 months, where you can pay off the loan and stop the foreclosure.
If no resolution is reached, a sale date is set for the property.

What You Can Do:

Use the redemption period to catch up on payments if financially possible.
Seek assistance programs that may help with funds or refinancing.
Consider a short sale or deed in lieu of foreclosure to minimize credit damage.

Step 5: Foreclosure Sale & Eviction (Typically 12+ Months In)

What Happens?

The lender holds a foreclosure auction, and the property is sold to the highest bidder.
If the property doesn’t sell, the lender may take ownership (REO property).
After the sale, the owner may receive an eviction notice, typically allowing 30-60 days to vacate.

What You Can Do:

If foreclosure is complete, focus on planning your next steps, such as finding rental housing or rebuilding credit.
Seek legal guidance—In some cases, eviction defenses or additional time extensions may be possible.

Understand deficiency judgments—If your property sells for less than you owe, Illinois allows lenders to pursue the remaining balance unless settled in court.

Building an Equitable Chicago • June 3, 2025

Funding Your First Equitable Development Project: Grants, Loans & Investment Strategies

by Molly Heyen

Hands with dollar sign bag and light bulb

Introduction:
Financing an equitable development project in Chicago requires a mix of creativity, strategy, and persistence. Unlike traditional real estate projects, equitable developments often prioritize affordability, sustainability, and community benefits—which means accessing funding sources that align with these goals. In this post, we’ll explore grants, loans, and investment strategies to help new equitable developers get their first project off the ground.

1. Understanding the Funding Landscape

Equitable development projects often require a combination of funding sources, including:

Grants & Public Incentives – Free or low-cost capital aimed at community-focused projects.
Loans & Tax Credits – Financing options that provide favorable terms for equitable developments.
Private Investment & Partnerships – Impact investors and community partnerships that align with equitable development goals.

2. Grants & Public Incentives for Equitable Developers

Chicago’s Neighborhood Opportunity Fund (NOF)

Provides grants to support commercial and mixed-use developments in underserved areas.
Prioritizes projects that bring jobs and resources to South and West Side communities.
Grant Amounts: Up to $250,000 for standard projects, larger grants available for catalytic developments.

C-PACE (Commercial Property Assessed Clean Energy) Financing

Funds energy-efficient building upgrades with no upfront costs.
Ideal for projects incorporating sustainability initiatives like solar panels or green infrastructure.

TIF (Tax Increment Financing) Funds

Available for projects that contribute to economic growth in designated TIF districts.
Helps cover infrastructure improvements, site remediation, and gap financing.

LIHTC (Low-Income Housing Tax Credit)

Federal tax credit program that supports affordable housing developments.
Often used to attract investors to mixed-income housing projects.

Chicago Community Development Grant

Helps small and mid-sized development projects in historically disinvested areas.
Focuses on minority-led developers and community-centered initiatives.

Hands with dollar sign bag and light bulb

3. Loans & Alternative Financing for Equitable Development

Community Development Financial Institutions (CDFIs)

Offer low-interest loans tailored to developers working in underserved communities.
Notable CDFIs in Chicago:

New Market Tax Credits (NMTC)

Helps attract private investment to developments in low-income communities.
Often used for mixed-use and commercial projects.

Construction & Bridge Loans

Short-term financing options to cover project costs before securing permanent funding.

Cooperative & Crowdfunded Financing

Community land trusts (CLTs) and equity crowdfunding allow local residents to invest in developments.
Platforms like Small Change and Fundrise specialize in mission-driven real estate crowdfunding.

4. Attracting Private Investment & Partnerships

Impact Investors & Socially Responsible Investment Funds

Investors focused on social impact may provide equity financing for equitable developments.
Groups like Enterprise Community Partners and The Chicago Community Trust invest in mission-driven projects.

Public-Private Partnerships (PPP)

Partnering with city agencies, nonprofits, or universities can unlock funding and technical assistance.

Joint Ventures with Local Developers

New equitable developers can team up with experienced firms to gain access to funding and expertise.

5. Case Studies: Equitable Developers Who Leveraged Creative Financing

The Hatchery (Garfield Park): Used a mix of NOF grants, NMTC, and private investment to fund a food business incubator.
The 43 Green Project (Bronzeville): Secured LIHTC and private investment to create a transit-oriented affordable housing development.
The Overton Center (Bronzeville): Combined public grants and private funds to redevelop a historic school into a business hub.

How I Can Help as Your Real Estate Agent

Identifying Properties That Qualify for Incentives: I’ll help you find sites that align with public funding programs.
Connecting You with Lenders, Investors & Grant Resources: I have a network of CDFIs, impact investors, and grant specialists to help fund your project.
Navigating the Application Process: I’ll assist with zoning approvals, financial applications, and assembling the right team.
Maximizing Your Development’s Impact & ROI: I’ll help structure deals that balance community impact with long-term profitability.

Conclusion:

Funding an equitable development project takes strategic planning and a mix of public and private resources. With the right approach, new developers can secure the capital needed to create impactful, community-driven projects. If you need help finding a property that qualifies for incentives or connecting with financing resources, let’s talk.

Navigating Foreclosure in Chicago • May 29, 2025

How to Rebuild Your Credit After Foreclosure

by Molly Heyen

Piggy bank with coins, a calculator, and tools

Bouncing Back: Steps That May Help Rebuild Credit After Foreclosure

Introduction:
Foreclosure can feel like a major setback, but it doesn’t have to define your financial future. While it can impact your credit score, many people take steps to start rebuilding and, in some cases, even qualify for a mortgage again within a few years.

If you’ve been through foreclosure and are wondering what might help you move forward, here are some general strategies to explore. Every financial situation is different, so it’s important to consult with a qualified financial professional to determine the best course of action for you.

Step 1: Review Your Credit Report for Accuracy

Why It Matters:
Credit reports sometimes contain errors that could negatively impact your score. Checking your report ensures that everything is accurate.

How to Do It:

You can request a free credit report once a year at AnnualCreditReport.com.
Look for incorrect foreclosure dates, balances, or missed payments that shouldn’t be there.
If you notice any errors, consider disputing them with the credit bureau.

Next Step: A credit counselor or financial professional can help you review your report and understand what steps to take.

Step 2: Make On-Time Payments Moving Forward

Why It Matters:
Payment history is a major factor in credit scores, so making on-time payments can help improve your credit over time.

Steps to Consider:

Setting up automatic payments or calendar reminders can help avoid late payments.
Staying current on essential bills like rent, utilities, and any remaining loans may support a stronger financial foundation.
If you’re behind on any payments, a financial professional can help you explore repayment options.

Next Step: If you’re struggling to keep up with payments, a nonprofit credit counseling agency may be able to provide guidance.

Piggy bank with coins, a calculator, and tools

Step 3: Explore Credit-Building Options

Why It Matters:
Using credit responsibly may help rebuild your score over time, but it’s important to proceed carefully and avoid taking on unnecessary debt.

Possible Strategies:

Some individuals use secured credit cards, which require a refundable deposit and can be an entry point for rebuilding credit.
Others explore credit-builder loans, which are designed to establish a positive payment history.
Keeping credit card balances low relative to the limit may also help improve credit over time.

Next Step: Before opening new credit accounts, consider consulting a financial professional to determine whether it makes sense for your situation.

Step 4: Keep Older Accounts Open (When Possible)

Why It Matters:
The length of your credit history affects your score, so maintaining older accounts in good standing may be beneficial.

Steps to Consider:

If you have a credit card with no annual fee, keeping it open (even if you don’t use it often) could help maintain a longer credit history.
Some people explore becoming an authorized user on a responsible person’s credit card to help build history—this is something to discuss with a financial professional.

Next Step: A credit specialist or financial advisor can help determine whether this is a good strategy for you.

Step 5: Plan for the Future, Including Homeownership

Why It Matters:
While foreclosure can impact your ability to buy property in the short term, it doesn’t necessarily mean you can’t own property again in the future.

Possible Paths to Explore:

Some loan programs allow home purchases within 2-7 years after foreclosure, depending on financial circumstances.
Many buyers focus on saving for a down payment and improving their credit score before applying for a mortgage.
Speaking with a mortgage lender or financial advisor can help you understand when homeownership might be an option again.

Next Step: If homeownership is a future goal, a mortgage professional can provide insights into your specific eligibility and timeline.

Final Thoughts: You’re Not Alone

Rebuilding after foreclosure can take time, but many people have successfully regained financial stability with the right guidance and planning. If you’re not sure where to start, speaking with a credit counselor, financial advisor, or mortgage professional can help you understand your options.

If you’d like to explore potential real estate solutions, I’d be happy to discuss what’s possible. Please reach out, I’m here to help.

Building an Equitable Chicago • May 27, 2025

How to Build Strong Community Relationships as an Equitable Developer

by Molly Heyen

Introduction:
Equitable development is about more than just real estate—it’s about fostering trust and creating projects that serve the needs of the community. Developers who prioritize strong relationships with residents, local organizations, and policymakers are more likely to see successful, long-term projects. In this post, we’ll explore how equitable developers can effectively build and maintain community relationships in Chicago.

1. Why Community Relationships Matter in Development

Reduces Resistance to New Projects: When residents feel heard and included, they’re more likely to support new developments.
Strengthens Local Buy-In: A project designed with community input is more likely to attract tenants, businesses, and partners.
Unlocks Additional Funding & Support: Many grant programs prioritize projects with proven community engagement.
Enhances Long-Term Success: Developments that align with community needs are more sustainable and impactful.

2. Key Strategies for Building Community Trust

Engage Early & Often

Don’t wait until approvals are needed. Start conversations with residents, business owners, and community leaders as soon as possible.
Attend local neighborhood association meetings, chamber of commerce events, and ward meetings to understand community concerns.

Listen More Than You Talk

Host listening sessions rather than sales pitches—let residents voice their thoughts before presenting plans.
Conduct surveys and focus groups to gather community feedback on local needs and preferences.

Be Transparent & Set Realistic Expectations

Clearly communicate project timelines, potential impacts, and benefits.
If challenges arise (e.g., delays, zoning hurdles), keep the community informed rather than going silent.

Partner with Local Organizations & Leaders

Work with nonprofits, faith groups, and local businesses to strengthen community ties.
Collaborate with Black and Latino-owned construction firms and vendors to ensure economic benefits stay local.

Offer Tangible Community Benefits

Incorporate community spaces, job training programs, or discounted rental units for local businesses.
Consider community ownership models like land trusts or co-op housing to give residents a financial stake in development.

Woman presenting in front of a group

3. Overcoming Common Challenges in Community Engagement

Challenge: Mistrust of Developers

Solution: Show commitment by staying involved post-construction and ensuring long-term community benefits.

Challenge: Community Pushback on Development Plans

Solution: Adapt plans based on community feedback—small changes can lead to greater acceptance.

Challenge: Navigating Political & Bureaucratic Hurdles

Solution: Build relationships with local aldermen and city officials early in the process to avoid last-minute obstacles.

4. Case Studies: Developers Who Built Strong Community Ties

The Hatchery (Garfield Park): Partnered with local nonprofits to create a food business incubator benefiting neighborhood entrepreneurs.
PODER Headquarters (Gage Park): Worked with immigrant advocacy groups to design a community-centered workforce training hub.
The Overton Center (Bronzeville): Revitalized a historic school into a business space with input from local entrepreneurs.

How I Can Help as Your Real Estate Agent

Connecting You with Community Leaders & Organizations: I’ll introduce you to key stakeholders who can support your project.
Identifying Properties in Areas Ready for Equitable Development: I’ll help you find sites where community partnerships can thrive.
Advising on Public Engagement Strategies: I’ll guide you in building trust and avoiding common pitfalls in community relations.
Helping You Leverage Incentives for Community-Driven Projects: I’ll assist in securing grants and funding tied to equitable development.

Conclusion:

Equitable development thrives when it is built on strong relationships. Engaging with the community early, listening to residents, and delivering real benefits can turn a potential project into a lasting asset. If you need help finding the right location, connecting with community leaders, or structuring a project that benefits everyone involved, let’s talk.

Navigating Foreclosure in Chicago • May 22, 2025

What to Expect at Each Stage of the Foreclosure Process

by Molly Heyen

Foreclosure Timeline: What Happens and When (And How to Take Control Before It’s Too Late)

Introduction:
Foreclosure doesn’t happen overnight—it’s a process with multiple stages. Understanding what happens at each step can help you make informed decisions and, in some cases, even stop foreclosure before it’s final.

In this post, I’ll walk you through each stage of foreclosure, what to expect, and the options you may still have along the way.

Stage 1: Missed Mortgage Payments (Pre-Default Stage)

What Happens:

You miss your first payment.
Your lender may send a reminder or late fee notice.
Missing two or more payments triggers more serious warnings.

What You Can Do:

Act immediately – contact your lender to discuss loan modification or repayment plans.
If temporary hardship caused the missed payment, ask about a forbearance agreement
Seek financial counseling to explore solutions before things escalate.

Stage 2: Notice of Default (NOD) or Demand Letter

What Happens:

After 90 days of missed payments, your lender files a Notice of Default (NOD) or sends a demand letter.
This is an official warning that foreclosure is approaching.
The lender gives you a deadline to catch up on payments (varies by state).

What You Can Do:

If possible, catch up on missed payments before the deadline.
Ask about a loan modification to adjust your mortgage terms.
Consider selling your property before foreclosure damages your credit.

Stage 3: Notice of Trustee’s Sale / Lis Pendens (Public Notice of Foreclosure)

What Happens:

If payments aren’t caught up, the lender schedules a foreclosure auction.
A Notice of Trustee’s Sale (in non-judicial states) or Lis Pendens (in judicial foreclosure states) is filed.
This is publicly recorded and lets the world know your home is in foreclosure.

What You Can Do:

If you still want to keep your property, consider Chapter 13 bankruptcy (consult an attorney).
If keeping the property isn’t an option, a short sale could help avoid foreclosure
Act fast—time is running out to explore alternatives.

Arrow and map pin symbols on cubes.

Stage 4: Foreclosure Auction (Sheriff’s Sale or Trustee Sale)

What Happens:

Your property is auctioned to the highest bidder.
In some cases, if no one buys it, the lender takes ownership (REO property).
You may be required to vacate the property.

What You Can Do (If Foreclosure Is Imminent):

Contact your lender ASAP—some may postpone the sale for a pending short sale or loan modification.
If you need more time to move, ask about a cash-for-keys deal or tenant rights protections.
Seek legal advice to understand your remaining rights.

Stage 5: Post-Foreclosure (Eviction and Credit Impact)

What Happens:

If the property is sold, the new owner may issue an eviction notice.
Foreclosure stays on your credit report for seven years.
You may face a deficiency judgment (if the lender tries to recover unpaid debt).

How to Recover:

Start rebuilding your credit immediately
Save documentation of your foreclosure to explain circumstances to future lenders or landlords.
Work with a financial professional to plan your next steps.

The Key Takeaway: Timing Matters!

The sooner you take action, the more options you have. Here’s a quick breakdown of how much time you have at each stage:

Missed Payments: Best time to negotiate with your lender.
Notice of Default: Last chance to catch up before foreclosure begins.
Public Notice: Selling the porperty is still an option.
Auction: Options are limited—act fast.
Post-Foreclosure: Time to focus on recovery.

If you’re in the early stages of foreclosure, it’s not too late to change the outcome. Don’t wait until the last minute—[schedule a free, no-pressure consultation](Insert Link) to discuss your options today.

Conclusion:
Foreclosure can feel overwhelming, but understanding the process gives you the power to make informed decisions. Whether you’re looking to stop foreclosure, sell your home, or simply learn about your rights, there are options available—but they become fewer as time goes on.

Need guidance? Let’s talk. I’m here to help.

Building an Equitable Chicago • May 20, 2025

Navigating the Rezoning Process: A Guide for Equitable Developers

by Molly Heyen

Introduction:
Rezoning is often necessary for equitable developers looking to bring new housing, businesses, or community spaces to underutilized areas. However, it can be a complex, time-consuming process requiring city approvals, community buy-in, and strategic planning. In this post, we’ll break down how to navigate rezoning in Chicago and how to position your project for success.

1. Why Rezoning Matters for Equitable Development

Rezoning allows developers to:

Convert vacant lots or underutilized buildings into productive community spaces.
Increase housing density to create more affordable housing opportunities.
Integrate mixed-use developments that support local businesses.
Unlock new funding and incentive programs tied to specific zoning designations.

Common Scenarios Where Rezoning is Needed:

Converting an industrial site into a residential or mixed-use development.
Increasing allowable building height or density to accommodate more housing.
Adjusting parking or green space requirements to improve project feasibility.

Approved Building Permit

2. Key Steps in the Rezoning Process

Step 1: Understand the Current Zoning & What’s Allowed

Use the Chicago Zoning Ordinance and Zoning Map to identify the existing zoning classification of your target property.
Research allowable uses, density restrictions, and any overlay districts that may impact your development.

Step 2: Determine the Best Zoning for Your Project

Work with zoning consultants or city planners to identify the appropriate new zoning designation.
Ensure the new zoning aligns with community needs and the city’s long-term land use goals.

Step 3: Prepare & Submit a Rezoning Application

Required Documents:
- Site plans & architectural drawings.
- Development proposal outlining the project’s impact.
- Justification for rezoning based on public benefit and planning goals.
Submit the application to the Chicago Department of Planning & Development.

Step 4: Engage the Community & Key Stakeholders

Meet with the local alderman to gain political support.
Hold community meetings to address concerns and gather feedback.
Adjust project plans as needed to reflect community input.

Step 5: Undergo the Review & Approval Process

The application will go through several stages:
1. Preliminary Review by city planners.
2. Community Input & Public Hearings (often required for major zoning changes).
3. Approval by the Zoning Committee & City Council.
The entire process can take 6-12 months, depending on project complexity and community response.

3. Common Challenges & How to Overcome Them

Community Pushback

Challenge: Concerns about gentrification, increased traffic, or displacement.
Solution: Clearly communicate the project’s benefits—affordable housing, job creation, or public amenities.

Aldermanic & Political Hurdles

Challenge: Some aldermen may be hesitant to support rezoning without strong community backing.
Solution: Build relationships early, present clear benefits, and demonstrate widespread support.

Lengthy Approval Process

Challenge: Delays in zoning approvals can increase holding costs and financing risks.
Solution: Engage zoning professionals, submit a complete and well-documented application, and stay proactive in follow-ups.

4. Case Studies: Successful Rezoning for Equitable Development

The Lathrop Homes Redevelopment: A public housing revitalization project that required rezoning to integrate mixed-income housing and commercial spaces.
The 43 Green Development (Bronzeville): Rezoning enabled a transit-oriented development bringing affordable and market-rate housing near the CTA Green Line.
The Overton Center (Bronzeville): Converted a historic school into a business hub through a rezoning and adaptive reuse strategy.

How I Can Help as Your Real Estate Agent

Identifying Properties with Rezoning Potential: I’ll help you find sites where rezoning can add value and unlock new opportunities.
Connecting You with Zoning Experts & City Officials: I’ll introduce you to professionals who can streamline the rezoning process.
Supporting Community Engagement Efforts: I’ll guide you in building local support for your project to ease the approval process.
Navigating Incentives & Funding Tied to Rezoning: I’ll help you maximize financial benefits available for rezoned properties.

Conclusion:

Rezoning is a powerful tool for equitable developers looking to transform underutilized properties into thriving community assets. While the process can be complex, the right strategy, partnerships, and preparation can lead to successful outcomes. If you’re considering a development that requires rezoning, let’s connect—I’ve gone through the process for my own business and can help you navigate the process and identify the best opportunities for your project.

Navigating Foreclosure in Chicago • May 15, 2025

How Foreclosure Affects Your Future (and How to Minimize the Damage)

by Molly Heyen

Man in front of wall that shows arrows pointing in two directions like he has to choose

Foreclosure’s Impact on Your Future – And How to Protect Yourself

Introduction:
Foreclosure isn’t just about losing your property—it can have lasting effects on your finances, credit, and even future housing opportunities. The good news? You can recover, and there are steps you can take to reduce foreclosure’s long-term damage.

In this post, we’ll explore what happens after foreclosure, how it can affect your future, and what you can do now to protect yourself.

1. Credit Score Drop (and How to Rebuild It Faster)

One of the biggest impacts of foreclosure is a hit to your credit score.

How much does foreclosure drop your credit score?

A foreclosure can lower your credit score by 100 to 160 points (or more, depending on your starting score).
It remains on your credit report for seven years but affects you most in the first few years.

How to minimize the damage:

Pay down other debts to show responsible credit use.
Keep up with on-time payments for any remaining accounts.
Consider credit repair programs or financial counseling.

Pro tip: If foreclosure is unavoidable, a short sale or deed-in-lieu of foreclosure may have less impact on your credit than a full foreclosure.

2. Future Property Ownership – How Long Until You Can Buy Again?

Foreclosure doesn’t mean you’ll never own property again—but it does affect your ability to qualify for a new mortgage.

Possible Waiting periods for a new home loan:

Conventional loan: 7 years after foreclosure
FHA loan: 3 years after foreclosure
VA loan: 2 years after foreclosure (for eligible veterans)
USDA loan: 3 years after foreclosure

How to get back on track sooner:

Work on improving your credit score after foreclosure.
Save for a larger down payment to improve loan approval chances.
Consider alternative financing options like rent-to-own or private lending.

3. Renting After Foreclosure – Will Landlords Approve You?

Many landlords check credit reports, and a foreclosure can make renting more challenging.

Potential rental challenges:

Landlords may see foreclosure as a red flag on applications.
You may need a higher security deposit or co-signer to get approved.

How to improve rental approval chances:

Be upfront about your situation and show proof of stable income.
Offer references from past landlords or employers.
Look for independent landlords who may be more flexible than large apartment complexes.

Man in front of wall that shows arrows pointing in two directions like he has to choose

4. Future Job Opportunities – Can Foreclosure Affect Employment?

While foreclosure isn’t always a dealbreaker for employers, some industries do check credit reports—especially if the job involves finance, banking, or government security clearances.

How to protect yourself:

If applying for jobs, check your credit report first so you’re prepared.
Be honest if asked, and focus on how you’ve rebuilt financial stability.
Consider financial coaching to create a strong recovery plan.

5. Taxes and Deficiency Judgments – Will You Owe Money After Foreclosure?

In some cases, property owners may still owe money after foreclosure.

Potential financial risks:

If your lender sells your property for less than you owe, they may file a deficiency judgment requiring you to pay the difference.
In some cases, canceled debt could be taxable income (though certain exemptions apply).

How to protect yourself:

Consult a tax professional to see if you qualify for exemptions.
Check if your state has laws protecting owners from deficiency judgments.
Consider negotiating a deed-in-lieu of foreclosure to avoid extra costs.

How to Move Forward After Foreclosure

Foreclosure is a setback, but it doesn’t define your future. Here’s how to bounce back:

Step 1: Rebuild your credit by keeping up with other financial obligations.
Step 2: If you plan to buy again, research waiting periods and financing options.
Step 3: Stay informed—work with professionals who can guide you toward financial recovery.

If you’re still in the pre-foreclosure stage, you may have time to avoid these consequences altogether. The sooner you act, the more options you have.

Need Help Exploring Your Options?

If foreclosure isn’t final yet, you may still have time to sell your porperty, work out a deal with your lender, or explore alternatives that protect your financial future.

I specialize in helping property owners find solutions that work for them. If you want to discuss your options, please reach out. I’m happy to help.

Building an Equitable Chicago • May 13, 2025

Funding Strategies for Equitable Development in Chicago

by Molly Heyen

Community putting money in a box with a heart on it

Introduction:
Securing funding is one of the biggest challenges for equitable developers, especially those focused on community-driven projects. Traditional financing options often fall short when it comes to mixed-income housing, small business incubators, and other mission-driven developments. This post explores funding sources, key challenges, and strategies to secure capital for equitable projects in Chicago.

1. Common Challenges in Securing Development Funding

Limited Access to Traditional Financing: Banks may hesitate to fund projects in disinvested areas or for first-time developers.
High Upfront Costs: Land acquisition, zoning approvals, and pre-development expenses require substantial initial capital.
Complicated Grant & Incentive Applications: Many government programs require extensive paperwork and long approval processes.
Balancing Affordability & Profitability: Ensuring community benefits while maintaining financial sustainability can be difficult.

2. Funding Sources for Equitable Development

Traditional & Alternative Lending Options

Community Development Financial Institutions (CDFIs): Mission-driven lenders that provide flexible loans for projects in underserved communities.
- Examples: Chicago Community Loan Fund (CCLF), IFF
Small Business Administration (SBA) Loans: Useful for developers incorporating commercial spaces into their projects.
Private Investors & Impact Funds: Some investors prioritize social impact alongside financial returns.
Construction Loans & Bridge Loans: Short-term financing options for developers to cover building costs.

Grants & Public Incentive Programs

Neighborhood Opportunity Fund (NOF): Grants for commercial projects in Chicago’s South and West Sides.
Low-Income Housing Tax Credits (LIHTC): Federal program providing tax credits for affordable housing developments.
Tax Increment Financing (TIF) Districts: Provides reimbursement for certain development costs in designated areas.
Historic Preservation Tax Credits: Available for restoring historic buildings while maintaining affordability.

Creative Financing & Community-Based Approaches

Crowdfunding & Community Investment Funds: Allows local residents to invest in developments that benefit their neighborhoods.
Community Land Trusts (CLTs): Nonprofit-owned land models that ensure long-term affordability.
Public-Private Partnerships (PPPs): Collaboration between developers, city agencies, and private investors to fund large-scale projects.
New Market Tax Credits (NMTC): Tax incentives for developments in low-income census tracts.

3. Strategies for Securing Funding & Reducing Costs

Align Your Project with Mission-Driven Lenders & Funds

Identify lenders who specialize in equitable or impact-driven development.
Highlight the social, economic, and environmental benefits of your project when pitching to investors.

Stack Multiple Funding Sources

Use a mix of grants, tax credits, and loans to reduce reliance on any single funding source.
Explore layered financing strategies to close funding gaps efficiently.

Engage the Community for Financial Support

Consider resident investment models that allow the community to co-own part of the project.
Leverage crowdfunding to demonstrate local demand and attract larger investors.

Take Advantage of Zoning & Tax Incentives

Explore tax abatements and credits that offset development costs.

Work with Experts to Streamline Applications

Partner with grant writers, financial consultants, and legal professionals to improve funding success rates.
Connect with city agencies and nonprofit advisors who assist developers in securing funding.

Community putting money in a box with a heart on it

4. Case Studies: Developers Who Successfully Leveraged Funding

The Hatchery (Garfield Park): Used a mix of NOF grants, impact investments, and public-private partnerships to fund a food business incubator.
43 Green (Bronzeville): Leveraged TOD incentives, LIHTC funding, and city-backed programs to create mixed-income housing near transit.
The Overton Center (Bronzeville): Transformed a historic school into a business hub through creative financing and community partnerships.

How I Can Help as Your Real Estate Agent

Identifying Properties with Funding Potential: I’ll help you find sites that qualify for grants, tax credits, and incentive programs.
Connecting You with the Right Lenders & Investors: I’ll introduce you to CDFIs, impact investors, and funding partners who align with your vision.
Navigating Incentive Programs: I’ll guide you through applying for NOF, TIF, and other funding sources.
Helping You Build a Financially Sustainable Plan: I’ll work with you to balance affordability, profitability, and long-term impact.

Conclusion:

Funding equitable development requires creativity, persistence, and a mix of financing strategies. By tapping into available resources, forming the right partnerships, and structuring deals effectively, you can bring community-driven projects to life. Need help finding properties with funding potential or connecting with lenders? Let’s discuss how I can support your development goals.

Coldwell Banker - Oak Lawn

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