Legal Question in Real Estate Law in Illinois

Deed in lieu of forclosure

I own a townhome in a complex of 6 units. I have lived there for 1.5 years. The owner (a bank) of the property has made no effort to sell the remaining 4 units for this entire length of time. As each day goes by the value of home home keeps going down. My financial situation has also changed dramatically since I first bought the home. As of now I am current on my mortgage payments but cannot keep up these hugh payments. What would the ramifications of asking my mortgage company to do a deed in lieu of foreclosure on my property. Would my credit suffer? do I have any recourse against the bank that owns the property?

Thank you.


Asked on 4/02/07, 9:53 am

1 Answer from Attorneys
Thomas Moens Moens Law Offices, Chartered

Re: Deed in lieu of forclosure

It depends on the lender. Some will report a deed in lieu of foreclosure to the credit bureaus, some will not. I do not think you have a case against the bank based solely on it not selling units which it owns. If they were letting them fall into disrepair, this might violate the city ordinances or restrictive covenants.

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Answered on 4/16/07, 11:41 am


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