Legal Question in Credit and Debt Law in Illinois

In June 2010, my wife and I sold our primary home via short sale. At closing, 1st lender was paid in full. 2nd (HELOC) got paid 10 percent, to release the lien only. I am the sole borrower of the HELOC. I was informed the 2nd lender has the right to pursue a deficiency judgment in future. In January 2010, my wife and I purchased an REO property with cash. With much pain, I emptied my 401k plus borrowed cash from family members to facilitate the cash purchase. So we now live in a house which we own free and clear. In March 2011, we changed our home ownership to "Tenancy by the Entirety" per friend�s advice. Here is my question. If down the road, I get served a deficiency judgment for the unpaid HELOC, is our home protected from the creditor (attaching lien, forcing sale, etc.)?

Asked on 10/20/11, 3:18 pm

Jonathan Shimberg Shimberg and Crohn, P.C.

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As it was not a joint debt, the creditor can not go after the house. (unless and until your wife dies before you)

Answered on 10/23/11, 4:50 pm

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