Legal Question in Real Estate Law in Illinois

We bought a home in 2006, ended up with a subprime mortgage, we were told the payments would be $1100 the night before close, at the closing found out it was $1900. They said the PMI was what made it suddenly so high.We got the loan through TCD mortgage, who told us that we had to refinance through another company to get the payment lowered, after a few months we couldnt keep up, so we tried to get the refinance through another company TCD recommended, everything was going great, it was appraised for more than we paid for it, the mortgage company told us we would get the new loan, not to pay anything on it until the close and they would add it to the end of that loan, all of sudden all commication stopped, that mortgage company wouldnt answer our phone calls or emails. By this time we were too far behind to pay the orginal payments. TCD refused to accept 3 or the 6 payments we were behind, it went into foreclosure and 9 months later we received a letter through the states attorney from TCD saying we had three weeks to vacate the premises or a sheriff would escort us off the property. We would of gave up the title if they had notified us. We are now being sued three years later for the balance of what we owed $122, 000. TCD is now the owner, they are selling the property for $155, 000 have it listed on yahoo and their own website, but they listed it under a bogus address. How can we be sued for the deficiency if the home is still for sale?? They were the original mortgage company, so can they buy back their own property and then try and sue us for the difference? I dont understand why we are being sued three years after the fact, when this company screwed us and lied to us right from the being. If it went into a sheriffs sale, we were never notified if it sold or not, we only got the one letter from the states attorney, so we moved out just days before the deadline that they gave us.


Asked on 4/24/10, 1:10 pm

1 Answer from Attorneys
Caroline Palmer Law firm of Caroline Palmer

You are being sued for the difference between the value of the mortgage and the amount it was sold for at the sheriff's sale. The original lender can buy it because you owned the property before the foreclosure and not the lender. What the lender is trying to do now is get a lien on all of your remaining assets to collect the amount of the deficiency. If the lender did not follow proper legal procedure in Lake County and notify you of the sheriff's sale, you may be able to use that to prevent a judgment lien.

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Answered on 4/29/10, 1:50 pm


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