Legal Question in Real Estate Law in Illinois

What are the consequesnces of allowing my home to go into foreclosure?


Asked on 10/22/09, 3:06 pm

2 Answers from Attorneys

Thomas Moens Moens Law Offices, Chartered

For the most part, you will lose your house, and your credit rating will drop significantly. Generally, lenders will not pursue any deficiency, but that is also a possibility.

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Answered on 10/27/09, 4:58 pm
John Lee John D. Lee and Associates, LLC

An additional possibility is that you will have to declare and pay income tax [state of IL and federal] on any mortgage debt that is forgiven, e.g., if you home is foreclosed and sold by the bank for $100,000 and your mortgage amount is $120,000, you may have to pay taxes on the $20,000 if the bank does not demand that you pay it [the deficiency]. Do you need an attorney?

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Answered on 10/27/09, 7:47 pm


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