Legal Question in Real Estate Law in Illinois

I currently own a Condo that is underwater, I don't live there as my family and I moved in with my elderly father to help him out, plus with my wife and I and the three kids all under the age of 2 give us more room than a 2 bedroom condo. My father is basically giving me his house which is paid for when he passes. As of right now I was able to sublet my condo to a co-worker who is basically paying that mortgage but he is planning on moving out in a few months, once he moves out I wont be able to afford that mortgage on my own and I dont think my association will fall for the excuse that I'm renting it to a 'family member' again, so renting it out again is highly unlikely. My question is should I just let it go into forclosure? Should I try to negotiate a short sale? Ive tried to re-finance the loans but due to my recent ch. 13 discharge I'm finding it hard to refinace. Honestly considering I have a roof over me and my family's head, I really dont wwant the property, and dont really care what happens to it or my credit since its still trashed from my BK


Asked on 8/31/16, 8:31 am

1 Answer from Attorneys
Stephen Messutta

Before you tread on land mines, have an attorney review the entire situation, including the condominium declaration for the underwater condo. There may be a "hardship" provision in the leasing restrictions, so that under your set of facts you MIGHT be able to lease it to a non-family member (if that is the restriction issue) for a year because you have to tend to your dad. Until you do that I don't think it's fair to comment on the horrors of foreclosure, short sales and resulting negative credit consequences - mainly because the entire situation is clearly stressful and making any decisions under those conditions ("dont really care what happens") most likely will come back to haunt you. Best of luck.....

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Answered on 9/01/16, 6:57 am


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