Legal Question in Real Estate Law in Illinois

Commercial Property Foreclosure

I currently own an 8 unit residential rental building. It has a mortgage (2 years old) and a line of credit (4 months ago). In 6 of the units, the tenants have stopped paying and I am in the process of allowing it to go to foreclosure. If I allow the lender to go through the full foreclosure process and the lender sues me for the remaining amount (which i would assume to be about $80,000.00) would I be able to file a chapter 7. My income from my job right now is $35000. Also how long would it be from the point that I stop making payments to the date my tenants get evicted from the bulilding?


Asked on 4/12/08, 5:18 pm

1 Answer from Attorneys
Nicholas Chrisos Nicholas G. Chrisos Attorney at Law

Re: Commercial Property Foreclosure

Whether you can file Chapter 7 to avoid the deficiency mainly depends on if you have other assets. Legally, you can write off personal debts (such as a deficiency) with a Chapter 7, but talk to a bankruptcy attorney for the details. If you want, I can give you a referral for one. In my experience, lenders rarely pursue deficiencies. Also, it may be possible to convince the lender to legally write off the deficiency. Contact me to discuss that if you like.

As far as how long it would take to evict the tenants, it depends on how the foreclosure is being pursued by the lender. It can either be at the same time as the judgment against you or afterwards.

Good luck.

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Answered on 4/15/08, 11:29 am


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