Legal Question in Real Estate Law in Illinois

I need to know what Illinois law states in the situation of a property being a Short Sale. We are currently in the Deed in Lieu process & do not yet have a decision. I was told by the bank rep to seek an attorney to answer the question: Who is to come up with the "short" funds should the house sell before the DIL process is complete? If we are responsible, we do not have any funds with which to do this. What happens then?


Asked on 8/28/09, 11:11 am

1 Answer from Attorneys
Bradley Sayad Lebow, Malecki & Tasch, LLC

You would be responsible for bring any "short" money to the table. However, most banks today simply waive the deficiency. You must get bank approval in order for a short sale to go through. So basically the bank pays the "short" amount. Be aware that you may by 1099ed for the difference.

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Answered on 9/02/09, 11:24 am


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