Legal Question in Real Estate Law in Illinois

For the most part, you will lose your house, and your credit rating will drop significantly. Generally, lenders will not pursue any deficiency, but that is also a possibility.

An additional possibility is that you will have to declare and pay income tax [state of IL and federal] on any mortgage debt that is forgiven, e.g., if you home is foreclosed and sold by the bank for $100,000 and your mortgage amount is $120,000, you may have to pay taxes on the $20,000 if the bank does not demand that you pay it [the deficiency]. Do you need an attorney?