Legal Question in Real Estate Law in Illinois

Can a bank sue after a short sale? We went through a short sale with first and second both with chase bank. An offer was made and the bank negotiated an amount that was $30,000 lower than the offer!! it was closed in 2009. I have now received a letter from Chase stating that they will accept a lower amount to clear the remaining amount with the equity loan.. Didn't the government make a rule for foreclosure and short sale balances that it would not count against you? on credit report remarks state charged off as bed debt and profit and loss write off. The paperwork showed 1500 payment to satisfy 2nd at closing...


Asked on 7/26/11, 2:24 pm

1 Answer from Attorneys
David Labovitz Labovitz Law Firm, P.A.

Hi. The bank can sue to collect the shortfall. Normally, when you participate in a short sale, you want to make sure that you get in writing from the lender that they are releasing you from the balance. If you don't get that release from them, then it is fair game for them to sue to collect.

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Answered on 7/28/11, 1:27 pm


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