Legal Question in Real Estate Law in Illinois

A municipality Is trying to purchase a house from me instead of using eminent domain. They had an appraisal done on the residence that came in 30k below what I owe on it. I obviously couldn't accept that. They then proposed an additional 27k which would have still left me owing 3k. Since I couldn't give them clear title with either of them proposals, do they count as a legal "offer"? They are now offering 4k over my payoff and calling it their 3rd offer. I contend that its only their first offer since there wasn't a way I could have given them clear title with the first two proposals so how could they be deemed "offers". on another note....if it does go to eminent domain, could they take the property from me for less then what I owe on it?


Asked on 8/29/13, 10:49 pm

1 Answer from Attorneys
Stephen Messutta

Technically if eminent domain is used to take your property the condemnor is only obligated to pay fair market value, and if the value is less than the mortgage, that is not the condemnor's problem, but it would certainly not be a politically friendly move. They may be avoiding condemnation so you can talk to your lender about a short sale under threat of condemnation, so that the clock on a condemnation action doesn't start ticking. Get an attorney involved; there are issues and negotiating strategies that you apparently need help with.

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Answered on 9/07/13, 9:24 am


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