Financial trouble rarely begins with a foreclosure notice. It often starts with one missed payment, an unexpected increase in property taxes, an escrow shortage, or a monthly housing cost that no longer fits the household budget. Nikki Runnels and Mahmoud Faisal Elkhatib discuss why homeowners should ask for help early, how taxes and insurance can dramatically change a mortgage payment, and why the right professionals matter when options are becoming limited. They also examine common mistakes buyers make before purchasing, including weak financial preparation, unrealistic expectations, and overlooking multifamily properties that may help offset housing costs.
A homeowner does not need to be deep into foreclosure before recognizing that something is wrong. The warning may begin with the first missed payment or the realization that the next mortgage payment cannot be made.
Nikki Runnels encourages homeowners to respond at that stage instead of waiting until several months of missed payments have accumulated. The earlier the problem is identified, the more time the homeowner has to understand the available options and speak with the appropriate professionals.
Waiting does not make the problem smaller. It usually reduces the number of choices available to solve it.
If mortgage payments, taxes, insurance, or another financial problem is placing the property at risk, the first step is understanding the complete situation. EV Häs helps Chicagoland homeowners evaluate foreclosure, mortgage, title, and legal issues before valuable time is lost.
Mahmoud Faisal Elkhatib is a Chicagoland real estate and foreclosure attorney, investor, entrepreneur, and former real estate broker. His work includes foreclosure defense, residential and commercial transactions, title disputes, building code matters, and distressed property issues.
Through The Bow Tie Edge, Mahmoud brings together professionals who can explain the financial, legal, and practical decisions that affect homeowners before, during, and after a real estate transaction.
Nikki Runnels is a real estate broker with KRGW Realty in Brookfield and works with homeowners, sellers, and buyers throughout the Chicagoland area.
She also works with distressed property situations and short sales, helping homeowners understand when they should begin asking questions and which professionals may need to become involved before the situation becomes more difficult.
Nikki identifies delay as one of the most damaging mistakes homeowners make. A borrower may ignore lender calls, notices, or missed payments because the situation feels temporary or overwhelming.
The lender may have options worth discussing, including possible repayment arrangements, forbearance, modification, or other programs depending on the loan and borrower circumstances. Other assistance may also exist through governmental or community resources.
The important point is that eligibility, deadlines, and available solutions can change as the delinquency continues.
Homeowners should not assume that the option available after the first missed payment will still exist several months later.
A homeowner may believe the lender suddenly increased the mortgage when the actual change came from property taxes, insurance, or the escrow account.
If property taxes increase substantially and the escrow account does not contain enough money to pay the bill, the lender may need to collect both the shortage from the prior period and enough additional money to prepare for the next tax payment.
This can create a dramatic increase in the monthly payment. A household that was comfortable with the original payment may suddenly face several hundred dollars or more in additional monthly cost.
The mortgage loan may not have changed at all while the total monthly housing payment becomes unaffordable.
Nikki and Mahmoud discuss several areas homeowners may want to review when property taxes become a problem. One is whether all applicable property tax exemptions are reflected correctly. Another is whether the property assessment accurately describes the property and its value.
Incorrect square footage, missing exemptions, or another factual issue may affect the tax bill. A property owner may also need to speak with a professional who handles property tax appeals to determine whether the assessment should be challenged.
Even when a tax correction produces a refund, the homeowner should still understand the escrow shortage. Using refunded money to restore the escrow account may help address the housing payment problem more directly than spending the refund elsewhere.
The third major mistake is receiving advice from someone who does not understand distressed real estate. A homeowner may hear that foreclosure takes years, that the lender will probably wait, or that nothing needs to happen immediately.
Nikki recommends speaking with professionals who regularly work with foreclosure, short sales, distressed property, lending, taxes, and the specific problem affecting the homeowner.
The lender should be part of the conversation, but the lender is not the homeowner’s only source of advice. The homeowner may also need independent legal, tax, real estate, or financial guidance depending on the circumstances.
The person giving advice should understand the problem you actually have, not simply real estate in general.
The second half of the conversation turns to buyers. Nikki identifies weak financial preparation as one of the biggest mistakes people make before purchasing.
Buyers should understand their credit, monthly obligations, savings, available cash, and realistic housing budget before becoming emotionally attached to a property. A lender preapproval can help establish what financing may be available, but buyers should still evaluate whether that payment works inside their real household budget.
Housing costs do not exist in isolation. Groceries, transportation, insurance, utilities, maintenance, and other expenses continue after the closing.
Qualifying for a mortgage does not automatically mean the maximum approved payment is comfortable or sustainable.
A strong purchase begins with realistic numbers, appropriate financing, careful contract review, and an understanding of the costs that continue after closing. EV Häs helps Chicagoland buyers protect the legal side of the transaction while the rest of the professional team evaluates financing and affordability.
Nikki also warns buyers against unrealistic expectations. The first property may not contain every finish, feature, or amount of space the buyer eventually wants.
A strong location and solid property may be more valuable than cosmetic perfection. Paint, fixtures, flooring, and other finishes can often be changed. The location cannot simply be moved later.
Buyers interested in investing may also consider a two, three, or four unit property when the financing and personal circumstances support it. Living in one unit while receiving rent from the others may help offset housing costs and introduce the buyer to property ownership and investing at the same time.
The larger lesson is not that every renter must immediately buy. Renting and ownership each have legitimate advantages. The important decision is understanding what the household wants, what it can realistically afford, and whether the chosen property moves the buyer toward that goal.
As early as possible. A homeowner should begin asking questions when a missed payment occurs or when the household realizes future payments may become difficult. Earlier action generally provides more time to evaluate available options.
The total payment may increase because property taxes or insurance increased, creating a larger escrow requirement or an escrow shortage that must be repaid.
The homeowner can review the assessment, property characteristics, available exemptions, recent tax bills, and the escrow analysis. A qualified property tax professional may also help determine whether an appeal or correction is appropriate.
The buyer should understand credit, income, debts, available cash, financing options, monthly expenses, and a realistic payment range. A lender preapproval can help establish available financing before serious property shopping begins.
Potentially. Certain financing programs may permit owner occupied properties with multiple units. Rental income may sometimes be considered during underwriting depending on the loan program and property. Buyers should confirm the current requirements directly with their lender.
