Legal Question in Bankruptcy in Illinois

Two Mortgages

I filed for bankruptcy in March 2005. My house was included in the bankruptcy. I did not reaffirm my house, but I still own it and am making the mortgage payments, but can barely afford to because it is being rented and my tenant is behind in rent. It would be hard to sell because it is so awkwardly shaped. I don't have much equity in it at all. If I stop paying now will it hurt me or my credit, besides me losing the house? Can the mortgage company come after me or my new home that I bought a year ago in 2007?


Asked on 11/13/08, 1:35 pm

1 Answer from Attorneys
Motty Stone Law Offices of Motty Stone

Re: Two Mortgages

Yes, a foreclosure will go on your credit report and adversely affect your ability to pay.

As to going after you or your other home... it depends if the loan you took was "recourse" or "non-recourse." In other words, if the house is the only collateral listed on the loan, then that is all the bank can take. If you are also personally liable to pay beyond what selling the house brings, then you could lose other property.

Please feel free to call us if you want to talk about your options.

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Answered on 11/13/08, 1:40 pm


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